0001770450-20-000023 | 10-Q | XBRL Viewer

Less: Income from continuing operations attributable to noncontrolling interests

$ (2)

$ 136

Less: Income from discontinued operations attributable to noncontrolling interests

Net (Loss) Income Attributable to Xerox Holdings/Xerox

(2)

133

Other Comprehensive (Loss) Income, Net

Translation adjustments, net

^[1]

(197)

Unrealized gains, net

^[1]

Changes in defined benefit plans, net

^[1]

Other Comprehensive (Loss) Income, Net Attributable to Xerox Holdings/Xerox

^[1]

(138)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(140)

176

Less: Comprehensive income, net from continuing operations attributable to noncontrolling interests

Less: Comprehensive income, net from discontinued operations attributable to noncontrolling interests

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings/Xerox

(140)

173

Less: Income from continuing operations attributable to noncontrolling interests

(2)

136

Less: Income from discontinued operations attributable to noncontrolling interests

Net (Loss) Income Attributable to Xerox Holdings/Xerox

(2)

133

Other Comprehensive (Loss) Income, Net

Translation adjustments, net

^[2]

(197)

Unrealized gains, net

^[2]

Changes in defined benefit plans, net

^[2]

Other Comprehensive (Loss) Income, Net Attributable to Xerox Holdings/Xerox

^[2]

(138)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(140)

176

Less: Comprehensive income, net from continuing operations attributable to noncontrolling interests

Less: Comprehensive income, net from discontinued operations attributable to noncontrolling interests

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings/Xerox

$ (140)

$ 173

[1]	Refer to Note 19 - Other Comprehensive (Loss) Income for gross components of Other comprehensive (loss) income, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.
[2]	Refer to Note 19 - Other Comprehensive (Loss) Income for gross components of Other comprehensive (loss) income, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions

Mar. 31, 2020

Dec. 31, 2019

Assets

Cash and cash equivalents

$ 2,622

$ 2,740

Accounts receivable (net of allowances of $60 and $55, respectively)

^[1]

1,060

1,236

Billed portion of finance receivables (net of allowances of $3 and $3, respectively)

^[1]

108

111

Finance receivables, net

1,104

1,158

Inventories

824

694

Other current assets

259

201

Total current assets

5,977

6,140

Finance receivables due after one year (net of allowances of $143 and $86, respectively)

^[1]

1,929

2,082

Equipment on operating leases, net

335

364

Land, buildings and equipment, net

426

Intangible assets, net

263

199

Goodwill

3,941

3,900

Deferred tax assets

604

598

Other long-term assets

1,309

1,338

Total Assets

14,784

15,047

Liabilities and Equity

Short-term debt and current portion of long-term debt

1,050

1,049

Accounts payable

1,122

1,053

Accrued compensation and benefits costs

271

349

Accrued expenses and other current liabilities

930

984

Total current liabilities

3,373

3,435

Long-term debt

3,238

3,233

Pension and other benefit liabilities

1,689

1,707

Post-retirement medical benefits

340

352

Other long-term liabilities

530

512

Total Liabilities

9,170

9,239

Commitments and Contingencies (See Note 21)

Convertible Preferred Stock

214

Common stock

213

215

Additional paid-in capital

2,712

2,782

Treasury stock, at cost

(76)

Retained earnings

6,252

6,312

Accumulated other comprehensive loss

(3,784)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

5,393

5,587

Noncontrolling interests

Total Equity

5,400

5,594

Total Liabilities and Equity

$ 14,784

$ 15,047

Shares of common stock issued (in shares)

212,831

214,621

Treasury stock (in shares)

(2,031)

Shares of Common Stock Outstanding (in shares)

212,831

212,590

Cash and cash equivalents

Assets

$ 2,622

$ 2,740

Accounts receivable (net of allowances of $60 and $55, respectively)

^[1]

1,060

1,236

Billed portion of finance receivables (net of allowances of $3 and $3, respectively)

^[1]

108

111

Finance receivables, net

1,104

1,158

Inventories

824

694

Other current assets

261

201

Total current assets

5,979

6,140

Finance receivables due after one year (net of allowances of $143 and $86, respectively)

^[1]

1,929

2,082

Equipment on operating leases, net

335

364

Land, buildings and equipment, net

426

Intangible assets, net

263

199

Goodwill

3,941

3,900

Deferred tax assets

604

598

Other long-term assets

1,309

1,338

Total Assets

14,786

15,047

Liabilities and Equity

Short-term debt and current portion of long-term debt

1,050

1,049

Accounts payable

1,122

1,053

Accrued compensation and benefits costs

271

349

Accrued expenses and other current liabilities

864

918

Total current liabilities

3,307

3,369

Long-term debt

3,238

3,233

Pension and other benefit liabilities

1,689

1,707

Post-retirement medical benefits

340

352

Other long-term liabilities

530

512

Total Liabilities

9,104

9,173

Commitments and Contingencies (See Note 21)

Additional paid-in capital

3,504

3,266

Retained earnings

5,955

6,247

Accumulated other comprehensive loss

(3,784)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

5,675

5,867

Noncontrolling interests

Total Equity

5,682

5,874

Total Liabilities and Equity

$ 14,786

$ 15,047

[1]	Allowances at March 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Cash Flows from Operating Activities

Income from discontinued operations, net of tax

$ (2)

$ 136

(51)

(Loss) Income from Continuing Operations

(2)

Adjustments required to reconcile Net (loss) income to Cash flows from operating activities

Depreciation and amortization

118

Provisions

Net gain on sales of businesses and assets

(1)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(35)

(33)

Defined benefit pension cost

Contributions to defined benefit pension plans

(33)

(34)

Decrease in accounts receivable and billed portion of finance receivables

166

Increase in inventories

(126)

(48)

Increase in equipment on operating leases

(32)

(30)

Decrease in finance receivables

Increase in other current and long-term assets

(16)

(2)

Increase (decrease) in accounts payable

(32)

Decrease in accrued compensation

(108)

(73)

(Decrease) increase in other current and long-term liabilities

(38)

Net change in income tax assets and liabilities

(10)

(21)

Net change in derivative assets and liabilities

Other operating, net

(8)

Net cash provided by operating activities of continuing operations

173

222

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

173

226

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(23)

(15)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(193)

(4)

Net cash used in investing activities

(214)

(18)

Cash Flows from Financing Activities

Net proceeds on short-term debt

Proceeds from issuance of long-term debt

Payments on long-term debt

(406)

Dividends

(58)

(62)

Payments to acquire treasury stock, including fees

(103)

Other financing, net

(4)

(2)

Net cash used in financing activities

(60)

(569)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(29)

(1)

Decrease in cash, cash equivalents and restricted cash

(130)

(362)

Cash, cash equivalents and restricted cash at beginning of period

2,795

1,148

Cash, cash equivalents and restricted cash at end of period

^[1]

2,665

786

Cash, cash equivalents and restricted cash, discontinued operations

Cash Flows from Operating Activities

Income from discontinued operations, net of tax

(2)

136

(51)

(Loss) Income from Continuing Operations

(2)

Adjustments required to reconcile Net (loss) income to Cash flows from operating activities

Depreciation and amortization

118

Provisions

Net gain on sales of businesses and assets

(1)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(35)

(33)

Defined benefit pension cost

Contributions to defined benefit pension plans

(33)

(34)

Decrease in accounts receivable and billed portion of finance receivables

166

Increase in inventories

(126)

(48)

Increase in equipment on operating leases

(32)

(30)

Decrease in finance receivables

Increase in other current and long-term assets

(16)

(2)

Increase (decrease) in accounts payable

(32)

Decrease in accrued compensation

(108)

(73)

(Decrease) increase in other current and long-term liabilities

(38)

Net change in income tax assets and liabilities

(10)

(21)

Net change in derivative assets and liabilities

Other operating, net

(8)

Net cash provided by operating activities of continuing operations

173

222

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

173

226

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(23)

(15)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(193)

(4)

Net cash used in investing activities

(214)

(18)

Cash Flows from Financing Activities

Net proceeds on short-term debt

Proceeds from issuance of long-term debt

Payments on long-term debt

(406)

Dividends

(62)

Payments to acquire treasury stock, including fees

(103)

Other financing, net

(4)

(2)

Net cash used in financing activities

(60)

(569)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(29)

(1)

Decrease in cash, cash equivalents and restricted cash

(130)

(362)

Cash, cash equivalents and restricted cash at beginning of period

2,795

1,148

Cash, cash equivalents and restricted cash at end of period

^[1]

2,665

786

Cash, cash equivalents and restricted cash, discontinued operations

XEROX CORPORATION | Xerox Holdings Corporation

Cash Flows from Financing Activities

Dividends

$ (58)

$ 0

[1]	Balance at March 31, 2019 includes $1 associated with discontinued operations.

Condensed Consolidated Balance Sheets - Parenthetical (Unaudited) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accounts receivable, allowance for credit loss, current	$ 60	$ 55
Financing receivables, allowance for credit loss, current	3	3
Financing receivables, allowance for credit loss, noncurrent	143	86
XEROX CORPORATION
Accounts receivable, allowance for credit loss, current	60	55
Financing receivables, allowance for credit loss, current	3	3
Financing receivables, allowance for credit loss, noncurrent	$ 143	$ 86

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation References to “Xerox Holdings” refer to Xerox Holdings Corporation and its consolidated subsidiaries while references to “Xerox” refer to Xerox Corporation and its consolidated subsidiaries. References herein to “we,” “us,” “our,” the “Company” refer collectively to both Xerox Holdings and Xerox unless the context suggests otherwise. The accompanying unaudited Condensed Consolidated Financial Statements and footnotes represent the respective, consolidated results and financial results of Xerox Holdings and Xerox and all respective companies that each registrant directly or indirectly controls, either through majority ownership or otherwise. This is a combined report of Xerox Holdings and Xerox, which includes separate unaudited Condensed Consolidated Financial Statements for each registrant. The accompanying unaudited Condensed Consolidated Financial Statements of both Xerox Holdings and Xerox have been prepared in accordance with the accounting policies described in the Combined 2019 Annual Report on Form 10-K ("2019 Annual Report"), except as noted herein, and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in the Combined 2019 Annual Report. In our opinion, all adjustments, which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented, have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. For convenience and ease of reference, we refer to the financial statement caption “(Loss) Income before Income Taxes and Equity Income” as “pre-tax (loss) income.” Notes to the Condensed Consolidated Financial Statements reflect the activity for both Xerox Holdings and Xerox for all periods presented, unless otherwise noted.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Xerox Holdings and Xerox consider the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). The ASUs listed below apply to both registrants. ASUs not listed below were assessed and determined to be not applicable to the Condensed Consolidated Financial Statements of either registrant. Accounting Standard Updates to be Adopted: Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04, however we continue to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This update is effective for our fiscal year beginning January 1, 2021. We are currently in the process of evaluating the effects on our consolidated financial statements. Accounting Standard Updates Adopted in 2020: Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments. This update was issued by the FASB in June 2016, with additional updates and amendments being issued in 2018, 2019 and 2020 and requires measurement and recognition of expected credit losses for financial assets on an expected loss model rather than an incurred loss model. The update impacted financial assets including net investment in leases that are not accounted for at fair value through Net Income. The adoption of ASU 2016-13 primarily impacted the estimation of our Allowance for doubtful accounts for Accounts Receivable and Finance Receivables. The impact recorded on our initial adoption of ASU 2016-13 was not material as our previous methodology for assessing the adequacy of our Allowance for doubtful accounts for Finance Receivables, the larger component of our receivable reserves, incorporated an expected loss model and the methodology for both allowances included an assessment of current economic conditions. However, as previously disclosed, the future impact from this update is highly dependent on future economic conditions. Refer to Note 8 - Accounts Receivable, Net and Note 9 - Finance Receivable, Net for additional discussion regarding the impacts from the adoption of this update during the first quarter 2020. Intangibles - Internal-Use Software On January 1, 2020, we adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This update was issued by the FASB in August 2018 and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The update provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The update also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The adoption of ASU 2018-12 did not have a material impact on our financial condition, results of operations or cash flows as we had previously capitalized these implementation costs and such amounts were not material. Other Updates In 2020 and 2019, the FASB also issued the following ASUs, which impact the Company but did not have or are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021. •Compensation - Stock Compensation and Revenue from Contracts with Customers: ASU 2019-08, (Topic 718) and (Topic 606) Codification Improvements - Share-Based Consideration Payable to a Customer. This update was effective for our fiscal year beginning January 1, 2020. •Collaborative Arrangements: ASU 2018-18, (Topic 808) Clarifying the Interaction between Topic 808 and Topic 606. This update was effective for our fiscal year beginning January 1, 2020. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020.

Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:


	Three Months Ended March 31,
	2020		2019
Primary geographical markets⁽¹⁾:
United States	$	1,114	$	1,268
Europe	481		600
Canada	108		124
Other	157		188
Total Revenues	$	1,860	$	2,180

Major product and services lines:
Equipment	$	325	$	448
Supplies, paper and other sales	240		276
Maintenance agreements⁽²⁾	529		598
Service arrangements⁽³⁾	566		635
Rental and other	141		160
Financing	59		63

Total Revenues	$	1,860	$	2,180

Sales channels:

Direct equipment lease⁽⁴⁾	$	126	$	134
Distributors & resellers⁽⁵⁾	223		315
Customer direct	216		275
Total Sales	$	565	$	724

_____________

(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.

(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners as Xerox Partner Print Services (XPPS).

(3)Primarily includes revenues from our Managed Services offerings. Also includes revenues from embedded operating leases, which were not significant.

(4)Primarily reflects direct sales through bundled lease arrangements.

(5)Primarily reflects sales through our two-tier distribution channels.

Contract Assets and Liabilities: We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time. Our contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for maintenance and other services to be performed and were approximately $133 and $137 at March 31, 2020 and December 31, 2019, respectively. The balance at March 31, 2020 is expected to be amortized to revenue over approximately the next 30 months.

Contract Costs: Incremental direct costs of obtaining a contract primarily include sales commissions paid to sales people and agents in connection with the placement of equipment with associated post sale services arrangements. These costs are deferred and amortized on the straight-line basis over the estimated contract term of the post sale services arrangement, which is currently estimated to be approximately four years. We pay commensurate sales commissions upon customer renewals, therefore our amortization period is aligned to our initial contract term.

Incremental direct costs are as follows:


	Three Months Ended March 31,
	2020		2019
Incremental direct costs of obtaining a contract	$	15	$	18
Amortization of incremental direct costs	21		23

The balance of deferred incremental direct costs net of accumulated amortization at March 31, 2020 and December 31, 2019 was $154 and $163, respectively. This amount is expected to be amortized over its estimated period of benefit, which we currently estimate to be approximately four years.

We may also incur costs associated with our services arrangements to generate or enhance resources and assets that will be used to satisfy our future performance obligations included in these arrangements. These costs are considered contract fulfillment costs and are amortized over the contractual service period of the arrangement to cost of services. In addition, we also provide inducements to certain customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. As of March 31, 2020 and December 31, 2019 amounts deferred associated with contract fulfillment costs and inducements were $13 and $13, respectively and the related amortization was $1 and $1 for the three months ended March 31, 2020 and 2019, respectively.

Equipment and software used in the fulfillment of service arrangements and where the Company retains control are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.

Lessor

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Lessor

Revenue from sales-type leases is presented on a gross basis when the company enters into a lease to realize value from a product that it would otherwise sell in its ordinary course of business, whereas in transactions where the company enters into a lease for the purpose of generating revenue by providing financing, the profit or loss, if any, is presented on a net basis. In addition, we have elected to account for sales tax and other similar taxes collected from a lessee as lessee costs and therefore we exclude these costs from contract consideration and variable consideration and present revenue net of these costs.

The components of lease income are as follows:


	Location in Statements of (Loss) Income	Three Months Ended March 31,
				2020			2019
Revenue from sales type leases	Sales	$	126		$	134


Interest income on lease receivables	Financing	59			63


Lease income - operating leases	Services, maintenance and rentals	86			104
Variable lease income	Services, maintenance and rentals	22			27
Total Lease income		$	293		$	328

Profit at lease commencement on sales type leases was estimated to be approximately $43 and $58 for the three months ended March 31, 2020 and 2019, respectively.

Lessor

The components of lease income are as follows:


	Location in Statements of (Loss) Income	Three Months Ended March 31,
				2020			2019
Revenue from sales type leases	Sales	$	126		$	134


Interest income on lease receivables	Financing	59			63


Lease income - operating leases	Services, maintenance and rentals	86			104
Variable lease income	Services, maintenance and rentals	22			27
Total Lease income		$	293		$	328

Profit at lease commencement on sales type leases was estimated to be approximately $43 and $58 for the three months ended March 31, 2020 and 2019, respectively.

Acquisitions	3 Months Ended
Acquisitions	Mar. 31, 2020
Business Combinations [Abstract]
Acquisitions	Acquisitions In 2020, Xerox continued its focus on further penetrating the small-to-medium sized business (SMB) market through acquisitions of local area resellers and partners (including multi-brand dealers). During the first quarter of 2020, business acquisitions associated with this initiative totaled $193, net of cash acquired, and included three acquisitions in the U.K. for $171 (GBP 132 million) - Arena Group, Altodigital Networks and ITEC Connect, as well an acquisition in Canada for approximately $22 (CAD 29 million). These acquisitions are expected to expand Xerox's presence in the SMB market in both Western Europe and Canada. The operating results of these acquisitions are not material to our financial statements and are included within our results from the acquisition date. The purchase prices were all cash for 100% ownership of the acquired companies and were primarily allocated to Intangible assets, net (approximately $70) and Goodwill (approximately $105), with the remainder to tangible net assets. The allocations are based on preliminary management estimates, which continue to be reviewed, and are expected to be finalized by the fourth quarter 2020 and may include input and support from third-party valuations. Any adjustments to the preliminary allocations are not expected to be material. Proposed Transaction with HP Inc. In November 2019, Xerox Holdings commenced a proposed business combination transaction with HP Inc. (HP). HP rejected the initial as well as subsequent proposals by Xerox Holdings and refused to engage in mutual due diligence or negotiations. Xerox Holdings nominated a slate of directors to HP's Board of Directors and initiated a tender offer to directly acquire HP shares. As a result of the ongoing global health crisis and resulting macroeconomic and market turmoil caused by the COVID-19 health crisis, Xerox Holdings determined that the current environment was not conducive to continuing its pursuit of a proposed business combination with HP. Accordingly, on March 31, 2020, Xerox Holdings withdrew its tender offer to acquire HP and will no longer seek to nominate a slate of directors to HP’s Board of Directors. In 2020, Xerox Holdings had obtained $24 billion in financing commitments from several banks to support the cash portion of the proposed business combination transaction with HP. On March 31, 2020, following the withdrawal of Xerox Holdings' tender offer to acquire HP, notice was provided to the banks of the immediate termination of the financing commitment. No termination penalties or other fees were paid as a result of termination.

Divestitures

3 Months Ended

Mar. 31, 2020

Divestitures

Sales of Ownership Interests in Fuji Xerox Co., Ltd. and Xerox International Partners

In November 2019, Xerox Holdings completed a series of transactions to restructure its relationship with FUJIFILM Holdings Corporation (FH), including the sale of its indirect 25% equity interest in Fuji Xerox (FX), as well as the sale of its indirect 51% partnership interest in Xerox International Partners (XIP) (collectively the Sales). As a result of the Sales and the related strategic shift in our business, the historical financial results of our equity method investment in FX and our XIP business (which was consolidated) for the periods prior to the Sales are reflected as a discontinued operation and as such, their impact is excluded from continuing operations for all periods presented.

Summarized financial information for our Discontinued operations is as follows:


	Three Months Ended March 31,
	2020		2019
Revenue	$	—	$	26

Income from operations⁽¹⁾	$	—	$	53
Gain on disposal	—		—
Income before income taxes	—		53
Income tax expense	—		2
Income from discontinued operations, net of tax	—		51
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		2
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$	—	$	49

_____________

(1)Includes Equity in net income for FX of $43 for the three months ended March 31, 2019.

Supplementary Financial Information

3 Months Ended

Mar. 31, 2020

Supplemental Financial Information [Abstract]

Supplementary Financial Information

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	2,622	$	2,740
Restricted cash
Litigation deposits in Brazil	42		55

Other restricted cash	1		—
Total Restricted cash	43		55
Cash, cash equivalents and restricted cash	$	2,665	$	2,795

Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation. As more fully discussed in Note 21 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Restricted cash was reported in the Condensed Consolidated Balance Sheets as follows:


	March 31, 2020		December 31, 2019
Other current assets	$	—	$	—
Other long-term assets	43		55
Total Restricted cash	$	43	$	55

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
	2020		2019
Provision for receivables	$	74	$	14
Provision for inventory	6		8
Provision for product warranty	2		4
Depreciation of buildings and equipment	21		27
Depreciation and obsolescence of equipment on operating leases	51		59
Amortization of internal use software	11		17

Amortization of acquired intangible assets	11		15
Amortization of customer contract costs⁽¹⁾	22		24
Cost of additions to land, buildings and equipment	18		9
Cost of additions to internal use software	5		6
Common stock dividends - Xerox Holdings	54		58
Preferred stock dividends - Xerox Holdings	4		4



Repurchases related to stock-based compensation - Xerox Holdings	7		1

_____________

(1)Amortization of customer contract costs is reported in Increase in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows. Refer to Note 3 - Revenue for additional information on contract costs.

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2020

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2020		December 31, 2019
Invoiced	$	861	$	980
Accrued⁽¹⁾	259		311
Allowance for doubtful accounts	(60)		(55)
Accounts receivable, net	$	1,060	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other⁽¹⁾	(1)
Balance at March 31, 2020	$	60

_____________

(1)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. Consistent with our adoption of ASU 2016-13 effective January 1, 2020 (refer to Note 2 - Recent Accounting Pronouncements), the allowance for uncollectible accounts receivable is determined based on an assessment of past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, and primarily as a result of the macroeconomic and market turmoil caused by COVID-19, the allowance for doubtful accounts as a percent of gross accounts receivable increased to 5.4% at March 31, 2020 from 4.3% at December 31, 2019.

Accounts Receivable Sales Arrangements

Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. The accounts receivable sold are generally short-term trade receivables with payment due dates of less than 60 days. We have one facility in Europe that enables us to sell accounts receivable associated with our distributor network on an ongoing basis, without recourse. Under this arrangement, we sell our entire interest in the related accounts receivable for cash and no portion of the payment is held back or deferred by the purchaser.

Of the accounts receivable sold and derecognized from our balance sheet, $87 and $165 remained uncollected as of March 31, 2020 and December 31, 2019, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
	2020		2019
Accounts receivable sales⁽¹⁾	$	53	$	88

Loss on sales of accounts receivable	—		1

_____________

(1)Customers may also enter into structured-payable arrangements that require us to sell our receivables from that customer to a third-party financial institution, which then makes payments to us to settle the customer's receivable. In these instances, we ensure the sale of the receivables are bankruptcy-remote and the payment made to us is without recourse. The activity associated with these arrangements is not reflected in this disclosure, as payments under these arrangements have not been material and these are customer directed arrangements.

Finance Receivables, Net

Finance receivables include sales-type leases and installment loans arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets.

Finance receivables, net were as follows:


	March 31, 2020		December 31, 2019
Gross receivables	$	3,690	$	3,865
Unearned income	(403)		(425)
Subtotal	3,287		3,440
Residual values	—		—
Allowance for doubtful accounts	(146)		(89)
Finance receivables, net	3,141		3,351
Less: Billed portion of finance receivables, net	108		111
Less: Current portion of finance receivables not billed, net	1,104		1,158
Finance receivables due after one year, net	$	1,929	$	2,082

Finance Receivables – Allowance for Credit Losses and Credit Quality

Our finance receivable portfolios are primarily in the U.S., Canada and EMEA. We generally establish customer credit limits and estimate the allowance for credit losses on a country or geographic basis. Customer credit limits are based upon an initial evaluation of the customer's credit quality and we adjust that limit accordingly based upon ongoing credit assessments of the customer, including payment history and changes in credit quality.

Consistent with our adoption of ASU 2016-13 effective January 1, 2020 (refer to Note 2 - Recent Accounting Pronouncements), the allowance for credit losses is determined principally based on an assessment of origination year and past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, and primarily as a result of the macroeconomic and market turmoil caused by COVID-19, the allowance for doubtful credit losses increased to 4.4% of gross finance receivables (net of unearned income) at March 31, 2020 from 2.6% at December 31, 2019. In assessing the level of reserve in first quarter 2020, we had to critically assess current and forecasted economic conditions in light of the COVID-19 health crisis to ensure we objectively included those expected impacts in the determination of our reserve. Our assessment also included current portfolio credit metrics and the level of reserves and write-offs we recorded on our receivable’s portfolio during the credit crisis in 2008/09 as additional reference points to objectively determine the adequacy of our allowance.

The allowance for doubtful accounts and provision for credit losses represents an estimate of the losses expected to be incurred from the Company's finance receivable portfolio. The level of the allowance is determined on a collective basis by applying projected loss rates to our different portfolios by country, which represent our portfolio segments. This is the level at which we develop and document our methodology to determine the allowance for credit losses. This projected loss rates are primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current and future economic conditions as well as delinquency trends, resolution rates, the aging of receivables, credit quality indicators and the financial health of specific customer classes or groups.

The allowance for doubtful finance receivables is inherently more difficult to estimate than the allowance for trade accounts receivable because the underlying lease portfolio has an average maturity, at any time, of approximately two to three years and contains past due billed amounts, as well as unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for doubtful accounts. We believe our estimates, including any qualitative adjustments, are reasonable and have considered all reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. The identification of account-specific exposure is not a significant factor in establishing the allowance for doubtful finance receivables. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented, with the exception of the updates required as part of our adoption of ASU 2016-13 effective January 1, 2020.

Since our allowance for doubtful finance receivables is effectively determined by geography, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of the countries/regions included in those geographies. Since EMEA is comprised of various countries and regional economies, the risk profile within that portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in the U.S. and EMEA remained steady

as compared to the prior year. However, in both instances the charge-offs are prior to the anticipated economic disruption from the COVID-19 health crisis, which is expected to impact write-off trends over the next year and a half.

Amounts disclosed below for the three months ended and at March 31, 2020 reflect the adoption of ASU 2016-13 in January 2020. Amounts disclosed below for comparable periods in 2019 reflect superseded guidance.

The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:


	United States		Canada⁽¹⁾		EMEA⁽¹⁾⁽²⁾		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other⁽³⁾	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment ⁽⁴⁾	$	1,866	$	289	$	1,132	$	3,287

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other⁽³⁾	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93









Finance receivables as of March 31, 2019 collectively evaluated for impairment⁽⁴⁾	$	1,895	$	336	$	1,235	$	3,466

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(3)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4)Total Finance receivables exclude the allowance for credit losses of $146 and $93 at March 31, 2020 and 2019, respectively.

In the U.S., customers are further evaluated by class based on the type of lease origination. The primary categories are direct, which primarily includes leases originated directly with end customers through bundled lease arrangements, and indirect, which includes lease financing to end-user customers who purchased equipment we sold to distributors or resellers. Indirect also includes leases originated through our XBS sales channel, which utilizes a combination of internal and third party leasing in its lease arrangements with end customers.

We evaluate our customers based on the following credit quality indicators:

•Low Credit Risk: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poor's (S&P) rating of BBB- or better. Loss rates in this category in the normal course are generally less than 1%.

•Average Credit Risk: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category in the normal course are generally in the range of 2% to 5%.

•High Credit Risk: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from low and average credit risk evaluation when the lease was originated. Accordingly, there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category in the normal course are generally in the range of 7% to 10%.

Credit quality indicators are updated at least annually, or more frequently to the extent required by economic conditions, and the credit quality of any given customer can change during the life of the portfolio.

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	March 31, 2020																December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	197	$	189	$	130	$	88	$	27	$	677	$	640
Average Credit Risk	19		108		66		38		19		5		255		331
High Credit Risk	13		40		24		14		10		5		106		132
Total	$	78	$	345	$	279	$	182	$	117	$	37	$	1,038	$	1,103

United States (Indirect):
Low Credit Risk	$	51	$	140	$	58	$	23	$	9	$	2	$	283	$	258
Average Credit Risk	40		179		121		67		26		5		438		445
High Credit Risk	6		20		46		25		8		2		107		116
Total	$	97	$	339	$	225	$	115	$	43	$	9	$	828	$	819

Canada⁽¹⁾
Low Credit Risk	$	10	$	37	$	30	$	14	$	13	$	5	$	109	$	163
Average Credit Risk	13		43		34		25		12		3		130		97
High Credit Risk	4		13		13		15		5		—		50		66
Total	$	27	$	93	$	77	$	54	$	30	$	8	$	289	$	326

EMEA⁽¹⁾⁽²⁾
Low Credit Risk	$	50	$	214	$	180	$	98	$	46	$	15	$	603	$	655
Average Credit Risk	46		176		132		77		36		10		477		479
High Credit Risk	3		18		13		11		5		2		52		58
Total	$	99	$	408	$	325	$	186	$	87	$	27	$	1,132	$	1,192







Total Finance Receivables
Low Credit Risk	$	157	$	588	$	457	$	265	$	156	$	49	$	1,672	$	1,716
Average Credit Risk	118		506		353		207		93		23		1,300		1,352
High Credit Risk	26		91		96		65		28		9		315		372
Total	$	301	$	1,185	$	906	$	537	$	277	$	81	$	3,287	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

The aging of our receivables portfolio is based upon the number of days an invoice is past due. Receivables that are more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance.

We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed reasonably assured.

The aging of our billed finance receivables is as follows:


	March 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	7	$	11	$	53	$	985	$	1,038	$	71
Indirect	23		5		3		31		797		828		—






Total United States	58		12		14		84		1,782		1,866		71
Canada⁽¹⁾	7		2		—		9		280		289		15





EMEA⁽¹⁾	13		3		2		18		1,114		1,132		25

Total	$	78	$	17	$	16	$	111	$	3,176	$	3,287	$	111

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada⁽¹⁾	8		2		1		11		315		326		17





EMEA⁽¹⁾⁽²⁾	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Finance Receivables, Net

3 Months Ended

Mar. 31, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2020		December 31, 2019
Invoiced	$	861	$	980
Accrued⁽¹⁾	259		311
Allowance for doubtful accounts	(60)		(55)
Accounts receivable, net	$	1,060	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other⁽¹⁾	(1)
Balance at March 31, 2020	$	60

_____________

(1)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

Accounts Receivable Sales Arrangements

Of the accounts receivable sold and derecognized from our balance sheet, $87 and $165 remained uncollected as of March 31, 2020 and December 31, 2019, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
	2020		2019
Accounts receivable sales⁽¹⁾	$	53	$	88

Loss on sales of accounts receivable	—		1

_____________

Finance Receivables, Net

Finance receivables, net were as follows:


	March 31, 2020		December 31, 2019
Gross receivables	$	3,690	$	3,865
Unearned income	(403)		(425)
Subtotal	3,287		3,440
Residual values	—		—
Allowance for doubtful accounts	(146)		(89)
Finance receivables, net	3,141		3,351
Less: Billed portion of finance receivables, net	108		111
Less: Current portion of finance receivables not billed, net	1,104		1,158
Finance receivables due after one year, net	$	1,929	$	2,082

Finance Receivables – Allowance for Credit Losses and Credit Quality

The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:


	United States		Canada⁽¹⁾		EMEA⁽¹⁾⁽²⁾		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other⁽³⁾	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment ⁽⁴⁾	$	1,866	$	289	$	1,132	$	3,287

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other⁽³⁾	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93









Finance receivables as of March 31, 2019 collectively evaluated for impairment⁽⁴⁾	$	1,895	$	336	$	1,235	$	3,466

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(3)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4)Total Finance receivables exclude the allowance for credit losses of $146 and $93 at March 31, 2020 and 2019, respectively.

We evaluate our customers based on the following credit quality indicators:

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	March 31, 2020																December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	197	$	189	$	130	$	88	$	27	$	677	$	640
Average Credit Risk	19		108		66		38		19		5		255		331
High Credit Risk	13		40		24		14		10		5		106		132
Total	$	78	$	345	$	279	$	182	$	117	$	37	$	1,038	$	1,103

United States (Indirect):
Low Credit Risk	$	51	$	140	$	58	$	23	$	9	$	2	$	283	$	258
Average Credit Risk	40		179		121		67		26		5		438		445
High Credit Risk	6		20		46		25		8		2		107		116
Total	$	97	$	339	$	225	$	115	$	43	$	9	$	828	$	819

Canada⁽¹⁾
Low Credit Risk	$	10	$	37	$	30	$	14	$	13	$	5	$	109	$	163
Average Credit Risk	13		43		34		25		12		3		130		97
High Credit Risk	4		13		13		15		5		—		50		66
Total	$	27	$	93	$	77	$	54	$	30	$	8	$	289	$	326

EMEA⁽¹⁾⁽²⁾
Low Credit Risk	$	50	$	214	$	180	$	98	$	46	$	15	$	603	$	655
Average Credit Risk	46		176		132		77		36		10		477		479
High Credit Risk	3		18		13		11		5		2		52		58
Total	$	99	$	408	$	325	$	186	$	87	$	27	$	1,132	$	1,192







Total Finance Receivables
Low Credit Risk	$	157	$	588	$	457	$	265	$	156	$	49	$	1,672	$	1,716
Average Credit Risk	118		506		353		207		93		23		1,300		1,352
High Credit Risk	26		91		96		65		28		9		315		372
Total	$	301	$	1,185	$	906	$	537	$	277	$	81	$	3,287	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

The aging of our billed finance receivables is as follows:


	March 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	7	$	11	$	53	$	985	$	1,038	$	71
Indirect	23		5		3		31		797		828		—






Total United States	58		12		14		84		1,782		1,866		71
Canada⁽¹⁾	7		2		—		9		280		289		15





EMEA⁽¹⁾	13		3		2		18		1,114		1,132		25

Total	$	78	$	17	$	16	$	111	$	3,176	$	3,287	$	111

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada⁽¹⁾	8		2		1		11		315		326		17





EMEA⁽¹⁾⁽²⁾	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Inventories and Equipment on Operating Leases, Net

3 Months Ended

Mar. 31, 2020

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:


	March 31, 2020		December 31, 2019
Finished goods	$	709	$	576
Work-in-process	43		47
Raw materials	72		71
Total Inventories	$	824	$	694

The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Condensed Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term.

Equipment on operating leases and the related accumulated depreciation were as follows:


	March 31, 2020		December 31, 2019
Equipment on operating leases	$	1,390	$	1,443
Accumulated depreciation	(1,055)		(1,079)
Equipment on operating leases, net	$	335	$	364

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $22 and $27 for the three months ended March 31, 2020 and 2019, respectively.

Lessee

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Lessee

Operating Leases

We have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to ten years and a variety of renewal and/or termination options.

The components of lease expense are as follows:


	Three Months Ended March 31,
	2020		2019
Operating lease expense	$	28	$	33
Short-term lease expense	5		5
Variable lease expense⁽¹⁾	12		13


Total Lease expense	$	45	$	51

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	March 31, 2020		December 31, 2019
Other long-term assets	$	319	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	262		260
Total Operating lease liabilities	$	348	$	347

Supplemental information related to operating leases is as follows:


	Three Months Ended March 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	29		$	32
ROU assets obtained in exchange for new lease liabilities ⁽¹⁾	$	27		$	9
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.26		%	5.64		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Finance Leases

Xerox has one finance lease for equipment and related infrastructure within an outsourced warehouse supply arrangement in the U.S. The lease expires in December 2026 and has a remaining lease obligation of $10 as of March 31, 2020 based on a discount rate of 4.53%. The Right-of-use asset balance associated with this finance lease of $11 is included in Land, buildings and equipment, net in the Condensed Consolidated Balance Sheet.

Lessee

Operating Leases

The components of lease expense are as follows:


	Three Months Ended March 31,
	2020		2019
Operating lease expense	$	28	$	33
Short-term lease expense	5		5
Variable lease expense⁽¹⁾	12		13


Total Lease expense	$	45	$	51

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	March 31, 2020		December 31, 2019
Other long-term assets	$	319	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	262		260
Total Operating lease liabilities	$	348	$	347

Supplemental information related to operating leases is as follows:


	Three Months Ended March 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	29		$	32
ROU assets obtained in exchange for new lease liabilities ⁽¹⁾	$	27		$	9
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.26		%	5.64		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Finance Leases

Restructuring Programs

3 Months Ended

Mar. 31, 2020

Restructuring Programs

We engage in restructuring actions, including Project Own It, as well as other transformation efforts in order to reduce our cost structure and realign it to the changing nature of our business and to achieve operating efficiencies through a number of opportunities including reduction of our real estate footprint.

During the three months ended March 31, 2020, we recorded net restructuring and asset impairment charges of $29, which included $32 of severance costs related to headcount reductions of approximately 300 employees worldwide, $1 of other contractual termination costs and $2 of asset impairment charges. These costs were partially offset by $6 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives.

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs⁽²⁾		Asset Impairments⁽³⁾		Total
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Provision	32		1		2		35
Reversals	(5)		—		(1)		(6)
Net current period charges⁽¹⁾	27		1		1		29
Charges against reserve and currency	(36)		2		(1)		(35)
Balance at March 31, 2020	$	57	$	7	$	—	$	64

______________

(1)Represents net amount recognized within the Condensed Consolidated Statements of (Loss) Income for the period shown for restructuring and asset impairment charges.

(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs. Charges for first quarter 2020 include a reclassification of $4 related to expected recovery from sublease.

(3)Primarily related to the exit and abandonment of leased and owned facilities. The charge includes the accelerated write-off of $1 for leased right-of-use assets and $1 for owned assets upon exit from the facilities, net of any potential sublease income and other recoveries.

The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows:


	Three Months Ended March 31,
	2020		2019
Charges against reserve and currency	$	(35)	$	(69)

Effects of foreign currency and other non-cash items	—		36
Restructuring cash payments	$	(35)	$	(33)

In connection with our restructuring programs, we also incurred certain related costs as follows:


	Three Months Ended March 31,
	2020		2019
Retention related severance/bonuses⁽¹⁾	$	7	$	9
Contractual severance costs⁽²⁾	4		38
Consulting and other costs⁽³⁾	1		11
Total	$	12	$	58

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination.

(2)2019 amounts reflect estimated severance and other related costs we were contractually required to pay in connection with employees transferred as part of the shared service arrangement entered into with HCL Technologies in the first quarter 2019.

(3)Represents professional support services associated with our business transformation initiatives.

The restructuring related costs reserve as of March 31, 2020 was $49, which is expected to be paid over the next twelve months, as compared to $37 at December 31, 2019.

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended March 31,
	2020		2019
Interest expense⁽¹⁾	$	51	$	60
Interest income⁽²⁾	67		67

_____________

(1)Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of (Loss) Income.

(2)Includes Financing revenue as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of (Loss) Income.

Financial Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Interest Rate Risk Management

We use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged.

Fair Value Hedges

During the first quarter 2020, we terminated our remaining pay variable/receive fixed interest rate swaps with notional amounts of $200 and net asset fair value of $4 prior to termination. The swaps had been designated and accounted for as fair value hedges prior to termination. The swaps were structured to hedge the fair value of related debt by converting them from fixed rate instruments to variable rate instruments. No ineffective portion was recorded to earnings for the three months ended March 31, 2020 prior to termination. The corresponding net fair value adjustment to the hedged debt of $(4) will be amortized to interest expense over the remaining term of the related notes.

Foreign Exchange Risk Management

We are a global company and we are exposed to foreign currency exchange rate fluctuations in the normal course of our business. As a part of our foreign exchange risk management strategy, we use derivative instruments, primarily forward contracts and purchased option contracts, to hedge the following foreign currency exposures, thereby reducing volatility of earnings or protecting fair values of assets and liabilities:

•Forecasted purchases and sales in foreign currency

•Foreign currency-denominated assets and liabilities

At March 31, 2020 and December 31, 2019, we had outstanding forward exchange and purchased option contracts with gross notional values of $1,131 and $1,091 respectively, with terms of less than 12 months. Approximately 81% of the contracts at March 31, 2020 mature within three months, 9% mature in three to six months and 10% in six to twelve months. The associated currency exposures being hedged at March 31, 2020 were materially consistent with our year-end currency exposures. There has not been any material change in our hedging strategy.

Foreign Currency Cash Flow Hedges

We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases, sales and expenses. The net asset (liability) fair value of these contracts were $3 and $(4) as of March 31, 2020 and December 31, 2019, respectively.

Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:


Designation of Derivatives	Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(2)		(5)


Interest rate swaps	Other long-term assets	—		1

	Net designated derivative asset (liability)	$	3	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(10)		(3)
	Net undesignated derivative liability	$	(5)	$	(2)

Summary of Derivatives	Total Derivative assets	$	10	$	3
	Total Derivative liabilities	(12)		(8)
	Net Derivative liability	$	(2)	$	(5)

Summary of Derivative Instruments Gains (Losses)

Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains (losses).

Designated Derivative Instruments Gains (Losses)

The following table provides a summary of gains (losses) on derivative instruments:


	Three Months Ended March 31,
Gain (Loss) on Derivative Instruments	2020		2019
Fair Value Hedges - Interest Rate Contracts
Derivative (loss) gain recognized in interest expense	$	(1)	$	2
Hedged item gain (loss) recognized in interest expense	1		(2)

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative gain recognized in OCI (effective portion)	$	7	$	3
Derivative (loss) gain reclassified from AOCL to income - Cost of sales (effective portion)	(1)		1

During the three months ended March 31, 2020 and 2019, no amount of ineffectiveness was recorded in the Condensed Consolidated Statements of (Loss) Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) were included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

As of March 31, 2020, a net after-tax gain of $3 was recorded in Accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.

Non-Designated Derivative Instruments Gains (Losses)

Non-designated derivative instruments are primarily instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges since there is a natural offset for the remeasurement of the underlying foreign currency-denominated asset or liability.

The following table provides a summary of gains (losses) on non-designated derivative instruments:


Derivatives NOT Designated as Hedging Instruments			Three Months Ended March 31,
		Location of Derivative Gain (Loss)			2020		2019
Foreign exchange contracts – forwards	Other expense – Currency gain (loss), net		$	14	$	(5)

For the three months ended March 31, 2020 and 2019 currency losses, net were $2 and $2, respectively. Net currency gains and losses include the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives as well as the remeasurement of foreign currency-denominated assets and liabilities and are included in Other expenses, net.

Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

The following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs.


	March 31, 2020		December 31, 2019
Assets
Foreign exchange contracts - forwards	$	10	$	2

Interest rate swaps	—		1

Deferred compensation investments in mutual funds	15		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	12	$	8



Deferred compensation plan liabilities	14		18
Total	$	26	$	26

We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2.

Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections.

Summary of Other Financial Assets and Liabilities

The estimated fair values of our other financial assets and liabilities were as follows:


	March 31, 2020						December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,622	$	2,622	$	2,740	$	2,740
Accounts receivable, net	1,060		1,060		1,236		1,236
Short-term debt and current portion of long-term debt	1,050		1,046		1,049		1,054
Long-term debt	3,238		3,203		3,233		3,331

The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short-term debt, including the current portion of long-term debt, and Long-term debt was estimated based on the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.

Stockholders' Equity Note [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:


	Three Months Ended March 31,

	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	1	$	—	$	5	$	7	$	1	$	—
Interest cost	23		30		29		39		2		4
Expected return on plan assets	(26)		(26)		(47)		(60)		—		—
Recognized net actuarial loss (gain)	7		5		14		10		—		(1)
Amortization of prior service credit	—		—		—		—		(19)		(19)
Recognized settlement loss	19		31		—		—		—		—
Recognized curtailment gain	—		—		(1)		—		—		—
Defined benefit plans	24		40		—		(4)		(16)		(16)
Defined contribution plans	5		8		5		6		n/a		n/a
Net Periodic Benefit Cost (Credit)	29		48		5		2		(16)		(16)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss⁽¹⁾	12		15		—		—		—		—
Amortization of net actuarial (loss) gain	(26)		(36)		(14)		(10)		—		1
Amortization of net prior service credit	—		—		—		—		19		19

Total Recognized in Other Comprehensive (Loss) Income⁽²⁾	(14)		(21)		(14)		(10)		19		20
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Loss) Income	$	15	$	27	$	(9)	$	(8)	$	3	$	4

_____________

(1)The net actuarial loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements.

(2)Amounts represent the pre-tax effect included within Other Comprehensive (Loss) Income. Refer to Note 19 - Other Comprehensive (Loss) Income for related tax effects and the after-tax amounts.

Contributions

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans.


	Three Months Ended March 31,						Year Ended December 31,
	2020		2019		Estimated 2020		2019
U.S. plans	$	6	$	6	$	25	$	26
Non-U.S. plans	27		28		110		115
Total Pension	$	33	$	34	$	135	$	141

Retiree Health	$	5	$	8	$	35	$	30

There are no mandatory contributions required in 2020 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements.

Shareholders' Equity of Xerox Holdings

3 Months Ended

Mar. 31, 2020

Shareholders' Equity of Xerox Holdings

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common⁽²⁾	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common⁽²⁾	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Cash dividends declared on common stock for the three months ended March 31, 2020 and 2019 were $0.25 per share.

(3)Cash dividends declared on preferred stock for the three months ended March 31, 2020 and 2019 were $20.00 per share.

Treasury Stock

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases⁽¹⁾	—	—
Cancellations	(2,031)	(76)
Balance at March 31, 2020	—	$	—

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox

3 Months Ended

Mar. 31, 2020

Shareholders' Equity of Xerox

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common⁽²⁾	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common⁽²⁾	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Cash dividends declared on common stock for the three months ended March 31, 2020 and 2019 were $0.25 per share.

(3)Cash dividends declared on preferred stock for the three months ended March 31, 2020 and 2019 were $20.00 per share.

Treasury Stock

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases⁽¹⁾	—	—
Cancellations	(2,031)	(76)
Balance at March 31, 2020	—	$	—

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox

Shareholders’ Equity of Xerox

(shares in thousands)

The shareholders' equity information presented below reflects the consolidated activity of Xerox.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	3,266	$	—	$	6,247	$	(3,646)	$	5,867	$	7	$	5,874

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)


Dividends declared to parent	—		—		—		(290)		—		(290)		—		(290)
Transfers from parent	—		238		—		—		—		238		—		238









Balance at March 31, 2020	$	—	$	3,504	$	—	$	5,955	$	(3,784)	$	5,675	$	7	$	5,682


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income is comprised of the following:


	Three Months Ended March 31,
	2020						2019
	Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation adjustments (losses) gains	$	(204)	$	(197)	$	37	$	37
Unrealized gains (losses)
Changes in fair value of cash flow hedges gains	7		4		3		3
Changes in cash flow hedges reclassed to earnings⁽¹⁾	1		1		(1)		(1)

Net Unrealized gains	8		5		2		2

Defined benefit plans (losses) gains
Net actuarial/prior service losses	(12)		(9)		(15)		(12)
Prior service amortization⁽²⁾	(19)		(14)		(19)		(14)
Actuarial loss amortization/settlement⁽²⁾	40		30		45		34
Fuji Xerox changes in defined benefit plans, net⁽³⁾	—		—		9		9
Other gains (losses)⁽⁴⁾	47		47		(16)		(16)
Changes in defined benefit plans gains	56		54		4		1



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox	$	(140)	$	(138)	$	43	$	40

____________

(1)Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.

(3)Represents our share of Fuji Xerox's benefit plan changes.

(4)Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.

Accumulated Other Comprehensive Loss (AOCL)

AOCL is comprised of the following:


	March 31, 2020		December 31, 2019
Cumulative translation adjustments	$	(2,158)	$	(1,961)
Other unrealized gains (losses), net	3		(2)
Benefit plans net actuarial losses and prior service credits	(1,629)		(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox	$	(3,784)	$	(3,646)

(Loss) Earnings per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

(Loss) Earnings per Share

Earnings per Share

(shares in thousands)

The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock of Xerox Holdings:


	Three Months Ended March 31,
	2020		2019
Basic (Loss) Earnings per Share
Net (Loss) Income from Continuing Operations Attributable to Xerox Holdings	$	(2)	$	84
Accrued dividends on preferred stock	(4)		(4)
Adjusted Net (loss) income from continuing operations available to common shareholders	(6)		80
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		49
Adjusted Net (loss) income available to common shareholders	$	(6)	$	129

Weighted average common shares outstanding	212,750		228,567

Basic (Loss) Earnings per Share:
Continuing operations	$	(0.03)	$	0.35
Discontinued operations	—		0.22
Basic (Loss) Earnings per Share	$	(0.03)	$	0.57

Diluted (Loss) Earnings per Share
Net (Loss) Income from Continuing Operations Attributable to Xerox Holdings	$	(2)	$	84
Accrued dividends on preferred stock	(4)		(4)
Adjusted Net (loss) income from continuing operations available to common shareholders	(6)		80
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		49
Adjusted Net (loss) income available to common shareholders	$	(6)	$	129

Weighted average common shares outstanding	212,750		228,567
Common shares issuable with respect to:
Stock options	—		3
Restricted stock and performance shares	—		4,406
Convertible preferred stock	—		—

Adjusted Weighted average common shares outstanding	212,750		232,976

Diluted (Loss) Earnings per Share:
Continuing operations	$	(0.03)	$	0.34
Discontinued operations	—		0.21
Diluted (Loss) Earnings per Share	$	(0.03)	$	0.55

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options	849		947
Restricted stock and performance shares	6,478		3,847
Convertible preferred stock	6,742		6,742
Total Anti-Dilutive Securities	14,069		11,536

Dividends per Common Share	$	0.25	$	0.25

Contingencies and Litigation

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Litigation

Legal Matters

We are involved in a variety of claims, lawsuits, investigations and proceedings concerning: securities law; governmental entity contracting; servicing and procurement law; intellectual property law; environmental law; employment law; the Employee Retirement Income Security Act (ERISA); and other laws and regulations. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs.

Brazil Contingencies

Our Brazilian operations have received or been the subject of numerous governmental assessments related to indirect and other taxes. The tax matters principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. Below is a summary of our Brazilian tax contingencies:


	March 31, 2020		December 31, 2019
Tax contingency - unreserved	$	349	$	442
Escrow cash deposits	40		51
Surety bonds	103		135
Letters of credit	72		91
Liens on Brazilian assets	—		—

The decrease in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily related to currency. With respect to the unreserved tax contingency, the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the Company. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute, as well as, additional surety bonds and letters of credit, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens on assets would be removed to the extent the matters are resolved in our favor. We are also involved in certain disputes with contract and former employees. Exposures related to labor matters are not material to the financial statements as of March 31, 2020 and December 31, 2019. We routinely assess all these matters as to the probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.

Litigation Against the Company

Pending Litigation Relating to the Fuji Transaction:

1.Ribbe v. Jacobson, et al.:

On April 11, 2019, Carmen Ribbe filed a putative derivative and class action stockholder complaint in the Supreme Court of the State of New York for New York County, naming as defendants Xerox, current Board members Gregory Q. Brown, Joseph J. Echevarria, Cheryl Gordon Krongard, Sara Martinez Tucker, Keith Cozza, Giovanni G. Visentin, Jonathan Christodoro, Nicholas Graziano, and A. Scott Letier, and former Board members Jeffrey Jacobson, William Curt Hunter, Robert J. Keegan, Charles Prince, Ann N. Reese, and Stephen H. Rusckowski. Plaintiff previously filed a putative shareholder derivative lawsuit on May 24, 2018 against certain of these defendants, as well as others, in the same court; that lawsuit was dismissed without prejudice on December 6, 2018. The new complaint included putative derivative claims on behalf of Xerox for breach of fiduciary duty against the members of the Xerox Board who approved Xerox’s entry into agreements to settle the Deason and In re Xerox Corporation Consolidated Shareholder Litigation (“XCCSL”) actions (described above). Plaintiff alleges that the settlements ceded control of the Board and the Company to Darwin Deason and Carl C. Icahn without a vote by, or

compensation to, other Xerox stockholders; improperly provided certain benefits and releases to the resigning and continuing directors; and subjected Xerox to potential breach of contract damages in an action by Fuji relating to Xerox’s termination of the proposed Fuji Transaction. Plaintiff also alleges that the current Board members breached their fiduciary duties by allegedly rejecting plaintiff’s January 14, 2019 shareholder demand on the Board to remedy harms arising from entry into the Deason and XCCSL settlements. The new complaint further included direct claims for breach of fiduciary duty on behalf of a putative class of current Xerox stockholders other than Mr. Deason, Mr. Icahn, and their affiliated entities (the “Ribbe Class”) against the defendants for causing Xerox to enter into the Deason and XCCSL settlements, which plaintiff alleges perpetuated control of Xerox by Mr. Icahn and Mr. Deason and denied the voting franchise of Xerox shareholders. Among other things, plaintiff seeks damages in an unspecified amount for the alleged fiduciary breaches in favor of Xerox against defendants jointly and severally; rescission or reformation of the Deason and XCCSL settlements; restitution of funds paid to the resigning directors under the Deason settlement; an injunction against defendants’ engaging in the alleged wrongful practices and equitable relief affording the putative Ribbe Class the ability to determine the composition of the Board; costs and attorneys’ fees; and other further relief as the Court may deem proper.

Defendants accepted service of the complaint as of May 16, 2019. On June 4, 2019, the Court entered an order setting a briefing schedule for defendants’ motions to dismiss the complaint. On July 12, 2019, plaintiff filed a motion to preclude defendants from referencing in their motions to dismiss the formation of, or work by, the committee of the Board established to investigate plaintiff’s shareholder demand. On July 18, 2019, the Court denied plaintiff’s motion and adjourned sine die the deadline by which defendants must file any motions to dismiss the complaint.

On January 6, 2020, plaintiff filed his first amended complaint (“FAC”). The FAC includes many of plaintiff’s original allegations regarding the 2018 shareholder litigation and settlements, as well as additional allegations, including, among others, that the members of the Special Committee of the Board that investigated plaintiff’s demand lacked independence and wrongfully refused to pursue the claims in the demand; allegations that an agreement announced in November 2019 for, among other things, the sale by Xerox of its interest in Fuji Xerox to Fujifilm and dismissal of Fujifilm’s breach of contract lawsuit against Xerox (the “FX Sale Transaction”), was unfavorable to Xerox; and allegations about a potential acquisition by Xerox of HP similar to those in the Miami Firefighters derivative action described below. In addition to the claims in the April 11, 2019 complaint, the FAC adds as defendants Carl C. Icahn, Icahn Capital LP, and High River Limited Partnership (the “Icahn defendants”) and asserts claims against those defendants and the Board similar to those in Miami Firefighters relating to the Icahn defendants’ purchases of HP stock allegedly with knowledge of material nonpublic information concerning Xerox’s potential acquisition of HP. In addition to the relief sought in Ribbe’s prior complaint, the FAC seeks relief similar to that sought in Miami Firefighters relating to the Icahn defendants’ alleged purchases of HP stock.

On January 21, 2020, plaintiff in the Miami Firefighters action filed a motion seeking to intervene in Ribbe and to have stayed, or alternatively, severed and consolidated with the Miami Firefighters action, any claims first filed in Miami Firefighters and later asserted by Ribbe. At a conference held on February 25, 2020, the Court denied the motion to intervene without prejudice. On March 6, 2020, plaintiff in the Miami Firefighters action renewed its motion. Briefing has not yet concluded.

Xerox will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment, or settlement occurs.

2.Miami Firefighters’ Relief & Pension Fund v. Icahn, et al.:

On December 13, 2019, alleged shareholder Miami Firefighters’ Relief & Pension Fund (“Miami Firefighters”) filed a purported derivative complaint in New York State Supreme Court, New York County on behalf of Xerox Holdings Corporation ("Xerox Holdings") (as nominal defendant) against Carl Icahn and his affiliated entities High River Limited Partnership and Icahn Capital LP (the "Icahn defendants"), Xerox Holdings, and all current Xerox Holdings directors (the "Directors"). Plaintiff made no demand on the Board before bringing the action, but instead alleges that doing so would be futile because the Directors lack independence due to alleged direct or indirect relationships with Icahn. Among other things, the complaint alleges that Icahn controls and dominates Xerox Holdings and therefore owes a fiduciary duty of loyalty to Xerox Holdings, which he breached by acquiring HP stock at a time when he knew that Xerox Holdings was considering an offer to acquire HP or had knowledge of the "obvious merits" of such potential acquisition, and that the Icahn defendants’ holdings of HP common stock have risen in market

value by approximately $128 since disclosure of the offer. The complaint includes four causes of action: breach of fiduciary duty of loyalty against the Icahn defendants; breach of contract against the Icahn defendants (for purchasing HP stock in violation of Icahn’s confidentiality agreement with Xerox Holdings); unjust enrichment against the Icahn defendants; and breach of fiduciary duty of loyalty against the Directors (for any consent to the Icahn defendants’ purchases of HP common stock while Xerox Holdings was considering acquiring HP). The complaint seeks a judgment of breach of fiduciary duties against the Icahn defendants and the Directors; a declaration that Icahn breached his confidentiality agreement with Xerox Holdings; a constructive trust on Icahn Capital and High River's investments in HP securities; disgorgement to Xerox Holdings of profits Icahn Capital and High River earned from trading in HP stock; payment of unspecified damages by the Directors for breaching fiduciary duties; and attorneys' fees, costs, and other relief the Court deems just and proper. On January 15, 2020, the Court entered an order granting plaintiff’s unopposed motion to consolidate with Miami Firefighters a similar action filed on December 26, 2019 by alleged shareholder Steven J. Reynolds against the same parties in the same court, and designating Miami Firefighters’ counsel as lead counsel in the consolidated action. On January 21, 2020, plaintiff filed a motion seeking to intervene in Ribbe v. Jacobson, et al., described above, and to have stayed, or alternatively, severed and consolidated with this action, any claims first filed in this action and later asserted by Ribbe. At a conference held on February 25, 2020, the Court denied the motion to intervene without prejudice. On March 6, 2020, plaintiff in the Miami Firefighters action renewed its motion. Briefing has not yet concluded.

Xerox Holdings will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment, or settlement occurs.

Guarantees

We have issued or provided approximately $294 of guarantees as of March 31, 2020 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil contingencies; and iii) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations.

In general, we would only be liable for the amount of these guarantees in the event we defaulted in performing our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support.

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Mar. 31, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Accounting Standard Updates to be Adopted and Accounting Standard Updates Adopted	Accounting Standard Updates to be Adopted: Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04, however we continue to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This update is effective for our fiscal year beginning January 1, 2021. We are currently in the process of evaluating the effects on our consolidated financial statements. Accounting Standard Updates Adopted in 2020: Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments. This update was issued by the FASB in June 2016, with additional updates and amendments being issued in 2018, 2019 and 2020 and requires measurement and recognition of expected credit losses for financial assets on an expected loss model rather than an incurred loss model. The update impacted financial assets including net investment in leases that are not accounted for at fair value through Net Income. The adoption of ASU 2016-13 primarily impacted the estimation of our Allowance for doubtful accounts for Accounts Receivable and Finance Receivables. The impact recorded on our initial adoption of ASU 2016-13 was not material as our previous methodology for assessing the adequacy of our Allowance for doubtful accounts for Finance Receivables, the larger component of our receivable reserves, incorporated an expected loss model and the methodology for both allowances included an assessment of current economic conditions. However, as previously disclosed, the future impact from this update is highly dependent on future economic conditions. Refer to Note 8 - Accounts Receivable, Net and Note 9 - Finance Receivable, Net for additional discussion regarding the impacts from the adoption of this update during the first quarter 2020. Intangibles - Internal-Use Software On January 1, 2020, we adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This update was issued by the FASB in August 2018 and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The update provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The update also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The adoption of ASU 2018-12 did not have a material impact on our financial condition, results of operations or cash flows as we had previously capitalized these implementation costs and such amounts were not material. Other Updates In 2020 and 2019, the FASB also issued the following ASUs, which impact the Company but did not have or are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021. •Compensation - Stock Compensation and Revenue from Contracts with Customers: ASU 2019-08, (Topic 718) and (Topic 606) Codification Improvements - Share-Based Consideration Payable to a Customer. This update was effective for our fiscal year beginning January 1, 2020. •Collaborative Arrangements: ASU 2018-18, (Topic 808) Clarifying the Interaction between Topic 808 and Topic 606. This update was effective for our fiscal year beginning January 1, 2020. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020.
Lessee, Leases	Operating LeasesWe have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to ten years and a variety of renewal and/or termination options.

Revenue (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues Disaggregated by Primary Geographic Markets, Major Products Lines, and Sales Channels

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:


	Three Months Ended March 31,
	2020		2019
Primary geographical markets⁽¹⁾:
United States	$	1,114	$	1,268
Europe	481		600
Canada	108		124
Other	157		188
Total Revenues	$	1,860	$	2,180

Major product and services lines:
Equipment	$	325	$	448
Supplies, paper and other sales	240		276
Maintenance agreements⁽²⁾	529		598
Service arrangements⁽³⁾	566		635
Rental and other	141		160
Financing	59		63

Total Revenues	$	1,860	$	2,180

Sales channels:

Direct equipment lease⁽⁴⁾	$	126	$	134
Distributors & resellers⁽⁵⁾	223		315
Customer direct	216		275
Total Sales	$	565	$	724

_____________

(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.

(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners as Xerox Partner Print Services (XPPS).

(3)Primarily includes revenues from our Managed Services offerings. Also includes revenues from embedded operating leases, which were not significant.

(4)Primarily reflects direct sales through bundled lease arrangements.

(5)Primarily reflects sales through our two-tier distribution channels.

Incremental Direct Costs of Obtaining a Contract

Incremental direct costs are as follows:


	Three Months Ended March 31,
	2020		2019
Incremental direct costs of obtaining a contract	$	15	$	18
Amortization of incremental direct costs	21		23

Lessor (Tables)

3 Months Ended

Mar. 31, 2020

Components of lease income

The components of lease income are as follows:


	Location in Statements of (Loss) Income	Three Months Ended March 31,
				2020			2019
Revenue from sales type leases	Sales	$	126		$	134


Interest income on lease receivables	Financing	59			63


Lease income - operating leases	Services, maintenance and rentals	86			104
Variable lease income	Services, maintenance and rentals	22			27
Total Lease income		$	293		$	328

Components of lease income

The components of lease income are as follows:


	Location in Statements of (Loss) Income	Three Months Ended March 31,
				2020			2019
Revenue from sales type leases	Sales	$	126		$	134


Interest income on lease receivables	Financing	59			63


Lease income - operating leases	Services, maintenance and rentals	86			104
Variable lease income	Services, maintenance and rentals	22			27
Total Lease income		$	293		$	328

Divestitures (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Summarized Financial Information - Discontinued operations

Summarized financial information for our Discontinued operations is as follows:


	Three Months Ended March 31,
	2020		2019
Revenue	$	—	$	26

Income from operations⁽¹⁾	$	—	$	53
Gain on disposal	—		—
Income before income taxes	—		53
Income tax expense	—		2
Income from discontinued operations, net of tax	—		51
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		2
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$	—	$	49

_____________

(1)Includes Equity in net income for FX of $43 for the three months ended March 31, 2019.

Supplemental Financial Information [Abstract]

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Supplementary Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	2,622	$	2,740
Restricted cash
Litigation deposits in Brazil	42		55

Other restricted cash	1		—
Total Restricted cash	43		55
Cash, cash equivalents and restricted cash	$	2,665	$	2,795

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	2,622	$	2,740
Restricted cash
Litigation deposits in Brazil	42		55

Other restricted cash	1		—
Total Restricted cash	43		55
Cash, cash equivalents and restricted cash	$	2,665	$	2,795

Restricted Cash Balance Sheet Location

Restricted cash was reported in the Condensed Consolidated Balance Sheets as follows:


	March 31, 2020		December 31, 2019
Other current assets	$	—	$	—
Other long-term assets	43		55
Total Restricted cash	$	43	$	55

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
	2020		2019
Provision for receivables	$	74	$	14
Provision for inventory	6		8
Provision for product warranty	2		4
Depreciation of buildings and equipment	21		27
Depreciation and obsolescence of equipment on operating leases	51		59
Amortization of internal use software	11		17

Amortization of acquired intangible assets	11		15
Amortization of customer contract costs⁽¹⁾	22		24
Cost of additions to land, buildings and equipment	18		9
Cost of additions to internal use software	5		6
Common stock dividends - Xerox Holdings	54		58
Preferred stock dividends - Xerox Holdings	4		4



Repurchases related to stock-based compensation - Xerox Holdings	7		1

_____________

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of accounts receivable, net

Accounts receivable, net were as follows:


	March 31, 2020		December 31, 2019
Invoiced	$	861	$	980
Accrued⁽¹⁾	259		311
Allowance for doubtful accounts	(60)		(55)
Accounts receivable, net	$	1,060	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other⁽¹⁾	(1)
Balance at March 31, 2020	$	60

_____________

(1)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

Schedule of accounts receivables sales

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
	2020		2019
Accounts receivable sales⁽¹⁾	$	53	$	88

Loss on sales of accounts receivable	—		1

_____________

Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Credit Losses on Financing Receivables

Finance Receivables

Finance receivables, net were as follows:


	March 31, 2020		December 31, 2019
Gross receivables	$	3,690	$	3,865
Unearned income	(403)		(425)
Subtotal	3,287		3,440
Residual values	—		—
Allowance for doubtful accounts	(146)		(89)
Finance receivables, net	3,141		3,351
Less: Billed portion of finance receivables, net	108		111
Less: Current portion of finance receivables not billed, net	1,104		1,158
Finance receivables due after one year, net	$	1,929	$	2,082

The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:


	United States		Canada⁽¹⁾		EMEA⁽¹⁾⁽²⁾		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other⁽³⁾	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment ⁽⁴⁾	$	1,866	$	289	$	1,132	$	3,287

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other⁽³⁾	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93









Finance receivables as of March 31, 2019 collectively evaluated for impairment⁽⁴⁾	$	1,895	$	336	$	1,235	$	3,466

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(3)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4)Total Finance receivables exclude the allowance for credit losses of $146 and $93 at March 31, 2020 and 2019, respectively.

Financing Receivable Credit Quality Indicators

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	March 31, 2020																December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	197	$	189	$	130	$	88	$	27	$	677	$	640
Average Credit Risk	19		108		66		38		19		5		255		331
High Credit Risk	13		40		24		14		10		5		106		132
Total	$	78	$	345	$	279	$	182	$	117	$	37	$	1,038	$	1,103

United States (Indirect):
Low Credit Risk	$	51	$	140	$	58	$	23	$	9	$	2	$	283	$	258
Average Credit Risk	40		179		121		67		26		5		438		445
High Credit Risk	6		20		46		25		8		2		107		116
Total	$	97	$	339	$	225	$	115	$	43	$	9	$	828	$	819

Canada⁽¹⁾
Low Credit Risk	$	10	$	37	$	30	$	14	$	13	$	5	$	109	$	163
Average Credit Risk	13		43		34		25		12		3		130		97
High Credit Risk	4		13		13		15		5		—		50		66
Total	$	27	$	93	$	77	$	54	$	30	$	8	$	289	$	326

EMEA⁽¹⁾⁽²⁾
Low Credit Risk	$	50	$	214	$	180	$	98	$	46	$	15	$	603	$	655
Average Credit Risk	46		176		132		77		36		10		477		479
High Credit Risk	3		18		13		11		5		2		52		58
Total	$	99	$	408	$	325	$	186	$	87	$	27	$	1,132	$	1,192







Total Finance Receivables
Low Credit Risk	$	157	$	588	$	457	$	265	$	156	$	49	$	1,672	$	1,716
Average Credit Risk	118		506		353		207		93		23		1,300		1,352
High Credit Risk	26		91		96		65		28		9		315		372
Total	$	301	$	1,185	$	906	$	537	$	277	$	81	$	3,287	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

Finance Receivables Aging


	March 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	7	$	11	$	53	$	985	$	1,038	$	71
Indirect	23		5		3		31		797		828		—






Total United States	58		12		14		84		1,782		1,866		71
Canada⁽¹⁾	7		2		—		9		280		289		15





EMEA⁽¹⁾	13		3		2		18		1,114		1,132		25

Total	$	78	$	17	$	16	$	111	$	3,176	$	3,287	$	111

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada⁽¹⁾	8		2		1		11		315		326		17





EMEA⁽¹⁾⁽²⁾	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Inventories and Equipment on Operating Leases, Net (Tables)

3 Months Ended

Mar. 31, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories

The following is a summary of Inventories by major category:


	March 31, 2020		December 31, 2019
Finished goods	$	709	$	576
Work-in-process	43		47
Raw materials	72		71
Total Inventories	$	824	$	694

Equipment on Operating Leases, Net

Equipment on operating leases and the related accumulated depreciation were as follows:


	March 31, 2020		December 31, 2019
Equipment on operating leases	$	1,390	$	1,443
Accumulated depreciation	(1,055)		(1,079)
Equipment on operating leases, net	$	335	$	364

Lessee (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of components of lease expense

The components of lease expense are as follows:


	Three Months Ended March 31,
	2020		2019
Operating lease expense	$	28	$	33
Short-term lease expense	5		5
Variable lease expense⁽¹⁾	12		13


Total Lease expense	$	45	$	51

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Schedule of operating leases assets and liabilities

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	March 31, 2020		December 31, 2019
Other long-term assets	$	319	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	262		260
Total Operating lease liabilities	$	348	$	347

Schedule of supplemental information related to operating leases

Supplemental information related to operating leases is as follows:


	Three Months Ended March 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	29		$	32
ROU assets obtained in exchange for new lease liabilities ⁽¹⁾	$	27		$	9
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.26		%	5.64		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Restructuring Programs (Tables)

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring Program Activity

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs⁽²⁾		Asset Impairments⁽³⁾		Total
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Provision	32		1		2		35
Reversals	(5)		—		(1)		(6)
Net current period charges⁽¹⁾	27		1		1		29
Charges against reserve and currency	(36)		2		(1)		(35)
Balance at March 31, 2020	$	57	$	7	$	—	$	64

______________

(1)Represents net amount recognized within the Condensed Consolidated Statements of (Loss) Income for the period shown for restructuring and asset impairment charges.

Reconciliation to the Condensed Consolidated Statements of Cash Flows

The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows:


	Three Months Ended March 31,
	2020		2019
Charges against reserve and currency	$	(35)	$	(69)

Effects of foreign currency and other non-cash items	—		36
Restructuring cash payments	$	(35)	$	(33)

Related Restructuring Costs

In connection with our restructuring programs, we also incurred certain related costs as follows:


	Three Months Ended March 31,
	2020		2019
Retention related severance/bonuses⁽¹⁾	$	7	$	9
Contractual severance costs⁽²⁾	4		38
Consulting and other costs⁽³⁾	1		11
Total	$	12	$	58

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination.

(3)Represents professional support services associated with our business transformation initiatives.

Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended March 31,
	2020		2019
Interest expense⁽¹⁾	$	51	$	60
Interest income⁽²⁾	67		67

_____________

(1)Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of (Loss) Income.

(2)Includes Financing revenue as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of (Loss) Income.

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:


Designation of Derivatives	Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(2)		(5)


Interest rate swaps	Other long-term assets	—		1

	Net designated derivative asset (liability)	$	3	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(10)		(3)
	Net undesignated derivative liability	$	(5)	$	(2)

Summary of Derivatives	Total Derivative assets	$	10	$	3
	Total Derivative liabilities	(12)		(8)
	Net Derivative liability	$	(2)	$	(5)

Summary of Gains (Losses) on Derivative Instruments

The following table provides a summary of gains (losses) on derivative instruments:


	Three Months Ended March 31,
Gain (Loss) on Derivative Instruments	2020		2019
Fair Value Hedges - Interest Rate Contracts
Derivative (loss) gain recognized in interest expense	$	(1)	$	2
Hedged item gain (loss) recognized in interest expense	1		(2)

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative gain recognized in OCI (effective portion)	$	7	$	3
Derivative (loss) gain reclassified from AOCL to income - Cost of sales (effective portion)	(1)		1

Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses)

The following table provides a summary of gains (losses) on non-designated derivative instruments:


Derivatives NOT Designated as Hedging Instruments			Three Months Ended March 31,
		Location of Derivative Gain (Loss)			2020		2019
Foreign exchange contracts – forwards	Other expense – Currency gain (loss), net		$	14	$	(5)

Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair value of financial assets and liabilities


	March 31, 2020		December 31, 2019
Assets
Foreign exchange contracts - forwards	$	10	$	2

Interest rate swaps	—		1

Deferred compensation investments in mutual funds	15		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	12	$	8



Deferred compensation plan liabilities	14		18
Total	$	26	$	26

Estimated fair values of financial assets and liabilities not measured at fair value on a recurring basis

The estimated fair values of our other financial assets and liabilities were as follows:


	March 31, 2020						December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,622	$	2,622	$	2,740	$	2,740
Accounts receivable, net	1,060		1,060		1,236		1,236
Short-term debt and current portion of long-term debt	1,050		1,046		1,049		1,054
Long-term debt	3,238		3,203		3,233		3,331

Components of net periodic benefit cost and other changes in plan assets and benefit obligations

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:


	Three Months Ended March 31,

	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	1	$	—	$	5	$	7	$	1	$	—
Interest cost	23		30		29		39		2		4
Expected return on plan assets	(26)		(26)		(47)		(60)		—		—
Recognized net actuarial loss (gain)	7		5		14		10		—		(1)
Amortization of prior service credit	—		—		—		—		(19)		(19)
Recognized settlement loss	19		31		—		—		—		—
Recognized curtailment gain	—		—		(1)		—		—		—
Defined benefit plans	24		40		—		(4)		(16)		(16)
Defined contribution plans	5		8		5		6		n/a		n/a
Net Periodic Benefit Cost (Credit)	29		48		5		2		(16)		(16)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss⁽¹⁾	12		15		—		—		—		—
Amortization of net actuarial (loss) gain	(26)		(36)		(14)		(10)		—		1
Amortization of net prior service credit	—		—		—		—		19		19

Total Recognized in Other Comprehensive (Loss) Income⁽²⁾	(14)		(21)		(14)		(10)		19		20
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Loss) Income	$	15	$	27	$	(9)	$	(8)	$	3	$	4

_____________

(1)The net actuarial loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements.

(2)Amounts represent the pre-tax effect included within Other Comprehensive (Loss) Income. Refer to Note 19 - Other Comprehensive (Loss) Income for related tax effects and the after-tax amounts.

Defined Benefit and Retiree Health Pension Plans, actual and expected cash contributions

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans.


	Three Months Ended March 31,						Year Ended December 31,
	2020		2019		Estimated 2020		2019
U.S. plans	$	6	$	6	$	25	$	26
Non-U.S. plans	27		28		110		115
Total Pension	$	33	$	34	$	135	$	141

Retiree Health	$	5	$	8	$	35	$	30

Shareholders' Equity of Xerox Holdings (Tables)

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common⁽²⁾	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common⁽²⁾	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Cash dividends declared on common stock for the three months ended March 31, 2020 and 2019 were $0.25 per share.

(3)Cash dividends declared on preferred stock for the three months ended March 31, 2020 and 2019 were $20.00 per share.

Summary of Treasury Stock Purchases

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases⁽¹⁾	—	—
Cancellations	(2,031)	(76)
Balance at March 31, 2020	—	$	—

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common⁽²⁾	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common⁽²⁾	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred⁽³⁾	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Cash dividends declared on common stock for the three months ended March 31, 2020 and 2019 were $0.25 per share.

(3)Cash dividends declared on preferred stock for the three months ended March 31, 2020 and 2019 were $20.00 per share.

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	3,266	$	—	$	6,247	$	(3,646)	$	5,867	$	7	$	5,874

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)


Dividends declared to parent	—		—		—		(290)		—		(290)		—		(290)
Transfers from parent	—		238		—		—		—		238		—		238









Balance at March 31, 2020	$	—	$	3,504	$	—	$	5,955	$	(3,784)	$	5,675	$	7	$	5,682


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL⁽¹⁾		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income, net	—		—		—		133		40		173		3		176
Cash dividends declared - common	—		—		—		(58)		—		(58)		—		(58)
Cash dividends declared - preferred	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(103)		—		—		(103)		—		(103)
Cancellation of treasury stock	(2)		(53)		55		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2019	$	230	$	3,282	$	(103)	$	5,270	$	(3,652)	$	5,027	$	36	$	5,063

_____________

(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.

Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income is comprised of the following:


	Three Months Ended March 31,
	2020						2019
	Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation adjustments (losses) gains	$	(204)	$	(197)	$	37	$	37
Unrealized gains (losses)
Changes in fair value of cash flow hedges gains	7		4		3		3
Changes in cash flow hedges reclassed to earnings⁽¹⁾	1		1		(1)		(1)

Net Unrealized gains	8		5		2		2

Defined benefit plans (losses) gains
Net actuarial/prior service losses	(12)		(9)		(15)		(12)
Prior service amortization⁽²⁾	(19)		(14)		(19)		(14)
Actuarial loss amortization/settlement⁽²⁾	40		30		45		34
Fuji Xerox changes in defined benefit plans, net⁽³⁾	—		—		9		9
Other gains (losses)⁽⁴⁾	47		47		(16)		(16)
Changes in defined benefit plans gains	56		54		4		1



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox	$	(140)	$	(138)	$	43	$	40

____________

(1)Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.

(3)Represents our share of Fuji Xerox's benefit plan changes.

(4)Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.

Schedule of Accumulated Other Comprehensive Loss

AOCL is comprised of the following:


	March 31, 2020		December 31, 2019
Cumulative translation adjustments	$	(2,158)	$	(1,961)
Other unrealized gains (losses), net	3		(2)
Benefit plans net actuarial losses and prior service credits	(1,629)		(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox	$	(3,784)	$	(3,646)

(Loss) Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock of Xerox Holdings:


	Three Months Ended March 31,
	2020		2019
Basic (Loss) Earnings per Share
Net (Loss) Income from Continuing Operations Attributable to Xerox Holdings	$	(2)	$	84
Accrued dividends on preferred stock	(4)		(4)
Adjusted Net (loss) income from continuing operations available to common shareholders	(6)		80
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		49
Adjusted Net (loss) income available to common shareholders	$	(6)	$	129

Weighted average common shares outstanding	212,750		228,567

Basic (Loss) Earnings per Share:
Continuing operations	$	(0.03)	$	0.35
Discontinued operations	—		0.22
Basic (Loss) Earnings per Share	$	(0.03)	$	0.57

Diluted (Loss) Earnings per Share
Net (Loss) Income from Continuing Operations Attributable to Xerox Holdings	$	(2)	$	84
Accrued dividends on preferred stock	(4)		(4)
Adjusted Net (loss) income from continuing operations available to common shareholders	(6)		80
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		49
Adjusted Net (loss) income available to common shareholders	$	(6)	$	129

Weighted average common shares outstanding	212,750		228,567
Common shares issuable with respect to:
Stock options	—		3
Restricted stock and performance shares	—		4,406
Convertible preferred stock	—		—

Adjusted Weighted average common shares outstanding	212,750		232,976

Diluted (Loss) Earnings per Share:
Continuing operations	$	(0.03)	$	0.34
Discontinued operations	—		0.21
Diluted (Loss) Earnings per Share	$	(0.03)	$	0.55

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options	849		947
Restricted stock and performance shares	6,478		3,847
Convertible preferred stock	6,742		6,742
Total Anti-Dilutive Securities	14,069		11,536

Dividends per Common Share	$	0.25	$	0.25

Contingencies and Litigation (Tables)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Brazil Tax Contingencies

Below is a summary of our Brazilian tax contingencies:


	March 31, 2020		December 31, 2019
Tax contingency - unreserved	$	349	$	442
Escrow cash deposits	40		51
Surety bonds	103		135
Letters of credit	72		91
Liens on Brazilian assets	—		—

Accounts, Notes, Loans and Financing Receivable [Line Items]

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12053-110248

+ Details

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,860	$ 2,180
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	325	448
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	240	276
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	529	598
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	566	635
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	141	160
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	59	63
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	565	724
Sales \| Direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	126	134
Sales \| Distributors & resellers
Disaggregation of Revenue [Line Items]
Total Revenues	223	315
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	216	275
Total United States
Disaggregation of Revenue [Line Items]
Total Revenues	1,114	1,268
EMEA
Disaggregation of Revenue [Line Items]
Total Revenues	481	600
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	108	124
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 157	$ 188

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Contract liabilities	$ 133		$ 137
Contract liability amortization period	30 months
Deferred incremental direct costs, amortization period	4 years
Deferred incremental direct costs net of accumulated amortization	$ 154		163
Contract Fulfillment Costs and Inducements
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Capitalized contract costs, amounts deferred	13		$ 13
Capitalized contract costs, amortization	$ 1	$ 1

Revenue - Incremental Direct Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 15	$ 18
Amortization of incremental direct costs	$ 21	$ 23

Lessor - Components of Lease Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Revenue from sales type leases	$ 126	$ 134
Interest income on lease receivables	59	63
Lease income - operating leases	86	104
Variable lease income	22	27
Total Lease income	293	$ 328
Profit at lease commencement, sales type leases	$ 43

Acquisitions - Additional Information (Details) £ in Millions, $ in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2020 GBP (£)	Mar. 31, 2020 CAD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Acquisition	$ 193
Goodwill	3,941			$ 3,900
Arena Group, Altodigital Networks and ITEC Connect
Business Acquisition [Line Items]
Acquisition	$ 171	£ 132
Arena Group
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
Altodigital Networks
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
ITEC Connect
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
Digitex Canada
Business Acquisition [Line Items]
Acquisition	$ 22		$ 29
Percentage of ownership acquired	100.00%
2020 Acquisitions
Business Acquisition [Line Items]
Intangible assets	$ 70
Goodwill	105
Miscellaneous Banks \| Bridge Loan \| HP Inc.
Business Acquisition [Line Items]
Amount committed by lender	$ 24,000

Divestitures (Details) - USD ($) $ in Millions	3 Months Ended
Divestitures (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019	Nov. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	$ 0	$ 26
Income from operations	0	53
Gain on disposal	0	0
Income before income taxes	0	53
Income tax expense	0	2
Income from discontinued operations, net of tax	0	51
Less: Income from discontinued operations attributable to noncontrolling interests	0	2
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$ 0	49
Equity in net income of FX		$ 43
Discontinued Operations, Disposed of by Sale \| Fuji Xerox
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage			25.00%
Discontinued Operations, Disposed of by Sale \| Xerox International Partners
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage			51.00%

Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 2,622	$ 2,740
Restricted cash
Litigation deposits in Brazil	42	55
Other restricted cash	1	0
Total Restricted cash	43	55
Cash, cash equivalents and restricted cash	$ 2,665	$ 2,795

Supplementary Financial Information - Restricted Cash Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 43	$ 55
Other current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	0	0
Other long-term assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 43	$ 55

Supplementary Financial Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental Financial Information [Abstract]
Provision for receivables	$ 74	$ 14
Provision for inventory	6	8
Provision for product warranty	2	4
Depreciation of buildings and equipment	21	27
Depreciation and obsolescence of equipment on operating leases	51	59
Amortization of internal use software	11	17
Amortization of acquired intangible assets	11	15
Amortization of customer contract costs	22	24
Cost of additions to land, buildings and equipment	18	9
Cost of additions to internal use software	5	6
Common stock dividends - Xerox Holdings	54	58
Preferred stock dividends - Xerox Holdings	4	4
Repurchases related to stock-based compensation - Xerox Holdings	$ 7	$ 1

Accounts Receivable, Net (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Mar. 31, 2020

Dec. 31, 2019

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

$ (55)

$ (60)

$ (55)

Accounts receivable, net

^[1]

1,060

1,236

Balance at December 31, 2019

Provision for receivables

Charge-offs

Recoveries and other

(1)

Balance at March 31, 2020

$ 60

$ 55

Credit Concentration Risk | Accounts Receivable

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

Concentration risk (percentage)

5.40%

4.30%

Accounts Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Invoiced

861

980

Accrued

259

311

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

$ (55)

(60)

(55)

Accounts receivable, net

$ 1,060

$ 1,236

Balance at December 31, 2019

Balance at March 31, 2020

$ 60

$ 55

[1]	Allowances at March 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Accounts Receivable, Net - Accounts Receivable Sales Arrangements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accounts Receivable Sales Arrangements [Abstract]
Uncollected accounts receivable sold and derecognized	$ 87		$ 165
Accounts Receivable
Accounts Receivable Sales Arrangements [Abstract]
Accounts receivable sales	53	$ 88
Loss on sales of accounts receivable	$ 0	$ 1

Finance Receivables, Net (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Dec. 31, 2019

Dec. 31, 2018

Financing Receivable, Allowance for Credit Loss [Line Items]

Gross receivables

$ 3,690

$ 3,865

Unearned income

(403)

(425)

Subtotal

3,287

3,440

Residual values

Less: Billed portion of finance receivables, net

(146)

$ (93)

(89)

$ (92)

Finance receivables, net

3,141

3,351

108

111

Less: Current portion of finance receivables not billed, net

1,104

1,158

Finance receivables due after one year, net

^[1]

$ 1,929

$ 2,082

Finance receivables lease portfolio -low - years

2 years

Finance lease portfolio average maturity - high - years

3 years

Charge-offs

$ (8)

(8)

Credit Concentration Risk | Financing Receivable

Financing Receivable, Allowance for Credit Loss [Line Items]

Concentration risk (percentage)

4.40%

2.60%

EMEA

Financing Receivable, Allowance for Credit Loss [Line Items]

Subtotal

$ 1,132

$ 1,192

Translation adjustments (losses) gains, Pre-tax

(40)

(28)

$ (19)

$ (27)

Charge-offs

$ (4)

$ (3)

[1]	Allowances at March 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 89	$ 92
Provision	66	9
Charge-offs	(8)	(8)
Recoveries and other	(1)	0
Ending Balance	146	93
Finance receivables collectively evaluated for impairment	$ 3,287	3,466
Loss rates of customers with investment grade credit quality	1.00%
Loss rates of customers with non investment grade credit quality, low range	2.00%
Loss rates of customers with non investment grade credit quality, high range	5.00%
Loss rates of customers with substandard doubtful credit quality - low	7.00%
Loss rates of customers with substandard doubtful credit quality - high	10.00%
Total United States
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 59	53
Provision	35	4
Charge-offs	(3)	(4)
Recoveries and other	0	0
Ending Balance	91	53
Finance receivables collectively evaluated for impairment	1,866	1,895
Canada
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	11	12
Provision	6	1
Charge-offs	(1)	(1)
Recoveries and other	(1)	0
Ending Balance	15	12
Finance receivables collectively evaluated for impairment	289	336
EMEA
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	19	27
Provision	25	4
Charge-offs	(4)	(3)
Recoveries and other	0	0
Ending Balance	40	28
Finance receivables collectively evaluated for impairment	$ 1,132	$ 1,235

Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 301
2019	1,185
2018	906
2017	537
2016	277
Prior	81
Subtotal	3,287	$ 3,440
United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	78
2019	345
2018	279
2017	182
2016	117
Prior	37
Subtotal	1,038	1,103
United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	97
2019	339
2018	225
2017	115
2016	43
Prior	9
Subtotal	828	819
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	27
2019	93
2018	77
2017	54
2016	30
Prior	8
Subtotal	289	326
EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2020	99
2019	408
2018	325
2017	186
2016	87
Prior	27
Subtotal	1,132	1,192
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	157
2019	588
2018	457
2017	265
2016	156
Prior	49
Subtotal	1,672	1,716
Low Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	46
2019	197
2018	189
2017	130
2016	88
Prior	27
Subtotal	677	640
Low Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	51
2019	140
2018	58
2017	23
2016	9
Prior	2
Subtotal	283	258
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	10
2019	37
2018	30
2017	14
2016	13
Prior	5
Subtotal	109	163
Low Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2020	50
2019	214
2018	180
2017	98
2016	46
Prior	15
Subtotal	603	655
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	118
2019	506
2018	353
2017	207
2016	93
Prior	23
Subtotal	1,300	1,352
Average Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	19
2019	108
2018	66
2017	38
2016	19
Prior	5
Subtotal	255	331
Average Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	40
2019	179
2018	121
2017	67
2016	26
Prior	5
Subtotal	438	445
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	13
2019	43
2018	34
2017	25
2016	12
Prior	3
Subtotal	130	97
Average Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2020	46
2019	176
2018	132
2017	77
2016	36
Prior	10
Subtotal	477	479
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	26
2019	91
2018	96
2017	65
2016	28
Prior	9
Subtotal	315	372
High Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	13
2019	40
2018	24
2017	14
2016	10
Prior	5
Subtotal	106	132
High Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	6
2019	20
2018	46
2017	25
2016	8
Prior	2
Subtotal	107	116
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	4
2019	13
2018	13
2017	15
2016	5
Prior	0
Subtotal	50	66
High Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2020	3
2019	18
2018	13
2017	11
2016	5
Prior	2
Subtotal	$ 52	$ 58

Inventories and Equipment on Operating Leases, Net - Summary of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Inventories, net [Abstract]
Finished goods	$ 709	$ 576
Work-in-process	43	47
Raw materials	72	71
Total Inventories	$ 824	$ 694

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Accumulated Depreciation (Details) - Equipment on Operating Leases and Related Accumulated Depreciation - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Equipment on Operating Leases, Net [Line Items]
Equipment on operating leases	$ 1,390	$ 1,443
Accumulated depreciation	(1,055)	(1,079)
Equipment on operating leases, net	$ 335	$ 364

Inventories and Equipment on Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Inventories and Equipment on Operating Leases, Net [Abstract]
Contingent rentals on operating lease, total	$ 22	$ 27

Lessee - Additional Information (Details) $ in Millions	Mar. 31, 2020 USD ($)
Leases [Abstract]
Remaining terms of leases	10 years
Remaining lease obligation	$ 10
Finance leases, discount rate	4.53%
Finance lease, right-of-use asset	$ 11

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease expense	$ 28	$ 33
Short-term lease expense	5	5
Variable lease expense	12	13
Total Lease expense	$ 45	$ 51

Lessee - Operating Lease ROU Asset, Net and Operating Lease Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease, Other long-term assets	$ 319	$ 319
Operating lease, Accrued expenses and other current liabilities	86	87
Operating lease, Other long-term liabilities	262	260
Total Operating lease liabilities	$ 348	$ 347

Lessee - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$ 29	$ 32
ROU assets obtained in exchange for new lease liabilities	$ 27	$ 9
Weighted-average remaining lease term (years)	5 years	4 years
Weighted-average discount rate (percent)	5.26%	5.64%

Restructuring Programs - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) Employees	Dec. 31, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	$ 29
Restructuring charges	$ 35
Headcount reductions, number of employees \| Employees	300
Restructuring charges, net reversals	$ 6
Restructuring related reserve	49	$ 37
Severance and Related Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	27
Restructuring charges	32
Restructuring charges, net reversals	5
Other Contractual Termination Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	1
Restructuring charges	1
Restructuring charges, net reversals	0
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	1
Restructuring charges	2
Restructuring charges, net reversals	$ 1

Restructuring Programs - Information Related to Restructuring Program Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 70
Provision	35
Reversals	(6)
Net current period charges	29
Charges against reserve and currency	(35)	$ (69)
Balance at end of period	64
Restructuring reserve, reclassification to other assets	4
Leased right-of-use asset write-off	1
Owned asset write-off	1
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	66
Provision	32
Reversals	(5)
Net current period charges	27
Charges against reserve and currency	(36)
Balance at end of period	57
Other Contractual Termination Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	4
Provision	1
Reversals	0
Net current period charges	1
Charges against reserve and currency	2
Balance at end of period	7
Asset Impairments
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0
Provision	2
Reversals	(1)
Net current period charges	1
Charges against reserve and currency	(1)
Balance at end of period	$ 0

Restructuring Programs - Summary Of Reconciliation to Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
Charges against reserve and currency	$ (35)	$ (69)
Effects of foreign currency and other non-cash items	0	36
Restructuring cash payments	$ (35)	$ (33)

Restructuring Programs - Certain Related Costs Incurred in Connection with Restructuring Programs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 12	$ 58
Retention related severance/bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	7	9
Contractual severance costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	4	38
Consulting and other costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 1	$ 11

Debt - Interest Expense and Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt Disclosure [Abstract]
Interest expense	$ 51	$ 60
Interest income	$ 67	$ 67

Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Derivative [Line Items]
Notional amount	$ 1,131,000,000		$ 1,091,000,000
Average Maturity of Foreign Exchange Hedging Contracts - within Three Months	81.00%
Average Maturity of Foreign Exchange Hedging Contracts - within Three and Six Months	9.00%
Average Maturity of Foreign Exchange Hedging Contracts - within Six and Twelve Months	10.00%
Net asset fair value	$ 2,000,000		5,000,000
Net gain recorded in AOCL expected to be reclassified to net income in the future	3,000,000
Foreign currency transaction (losses) gains, before tax	(2,000,000)	$ (2,000,000)
Senior Notes Due 2021
Derivative [Line Items]
Notional amount	200,000,000
Derivative asset, fair value, gross liability	4,000,000
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	(3,000,000)		3,000,000
Fair Value Hedges \| Senior Notes Due 2021
Derivative [Line Items]
Hedge ineffectiveness	0
Net fair value adjustment	(4,000,000)
Cash Flow Hedging \| Foreign exchange contracts - forwards \| Cost of Sales
Derivative [Line Items]
Hedge ineffectiveness	0	0
Derivative, underlying exposure	0	$ 0
Cash Flow Hedging \| Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	$ 3,000,000		$ (4,000,000)

Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative asset	$ (2)	$ (5)
Total Derivative assets
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	10	3
Total Derivative liabilities
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	(12)	(8)
Derivatives Designated as Hedging Instruments
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative asset	3	(3)
Derivatives Designated as Hedging Instruments \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	5	1
Derivatives Designated as Hedging Instruments \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	(2)	(5)
Derivatives Designated as Hedging Instruments \| Other long-term assets \| Interest rate swaps
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	0	1
Not Designated as Hedging Instrument \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative asset	(5)	(2)
Not Designated as Hedging Instrument \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	5	1
Not Designated as Hedging Instrument \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	$ (10)	$ (3)

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative gain recognized in OCI (effective portion)	$ 7	$ 3
Derivative (loss) gain reclassified from AOCL to income - Cost of sales (effective portion)	(1)	1
Interest Rate Contract \| Fair Value Hedges \| Interest Expense
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative (loss) gain recognized in interest expense	(1)	2
Hedged item gain (loss) recognized in interest expense	1	(2)
Foreign exchange contracts - forwards \| Cash Flow Hedges
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative gain recognized in OCI (effective portion)	7	3
Foreign exchange contracts - forwards \| Cash Flow Hedges \| Cost of Sales
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative (loss) gain reclassified from AOCL to income - Cost of sales (effective portion)	$ (1)	$ 1

Financial Instruments - Summary of Gains (Losses) Non-designated Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Foreign exchange contracts - forwards \| Other expense – Currency gain (loss), net \| Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on non-designated derivative instruments	$ 14	$ (5)

Fair Value of Financial Assets and Liabilities - Recurring (Details) - Recurring - Level 2 - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Assets
Deferred compensation investments in mutual funds	$ 15	$ 19
Total	25	22
Liabilities
Deferred compensation plan liabilities	14	18
Total	26	26
Foreign exchange contracts - forwards
Assets
Foreign currency contracts - assets	10	2
Liabilities
Foreign currency contracts - liabilities	12	8
Interest rate swaps
Assets
Interest rate swaps	$ 0	$ 1

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Nonrecurring - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 2,622	$ 2,740
Accounts receivable, net	1,060	1,236
Short-term debt and current portion of long-term debt	1,050	1,049
Long-term debt	3,238	3,233
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,622	2,740
Accounts receivable, net	1,060	1,236
Short-term debt and current portion of long-term debt	1,046	1,054
Long-term debt	$ 3,203	$ 3,331

Employee Benefit Plans (Details) - USD ($)	3 Months Ended		12 Months Ended
Employee Benefit Plans (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Components of Net Periodic Benefit Costs:
Defined benefit plans	$ 24,000,000	$ 36,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss	12,000,000	15,000,000
Amortization of net actuarial (loss) gain	(40,000,000)	(45,000,000)
Amortization of net prior service credit	19,000,000	19,000,000
Pension Plan
Contributions [Abstract]
Defined benefit plan, contributions by employer	33,000,000	34,000,000	$ 141,000,000
Defined benefit plan, expected future employer contributions	135,000,000
Pension Plan \| U.S.
Components of Net Periodic Benefit Costs:
Service cost	1,000,000	0
Interest cost	23,000,000	30,000,000
Expected return on plan assets	(26,000,000)	(26,000,000)
Recognized net actuarial loss (gain)	7,000,000	5,000,000
Amortization of prior service credit	0	0
Recognized settlement loss	19,000,000	31,000,000
Recognized curtailment gain	0	0
Defined benefit plans	24,000,000	40,000,000
Defined contribution plans	5,000,000	8,000,000
Net Periodic Benefit Cost (Credit)	29,000,000	48,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss	12,000,000	15,000,000
Amortization of net actuarial (loss) gain	(26,000,000)	(36,000,000)
Amortization of net prior service credit	0	0
Total Recognized in Other Comprehensive (Loss) Income	(14,000,000)	(21,000,000)
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	15,000,000	27,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer	6,000,000	6,000,000	26,000,000
Defined benefit plan, expected future employer contributions	25,000,000
Pension Plan \| U.S. \| Qualified Plan
Contributions [Abstract]
Mandatory future contributions	0
Pension Plan \| Non-U.S.
Components of Net Periodic Benefit Costs:
Service cost	5,000,000	7,000,000
Interest cost	29,000,000	39,000,000
Expected return on plan assets	(47,000,000)	(60,000,000)
Recognized net actuarial loss (gain)	14,000,000	10,000,000
Amortization of prior service credit	0	0
Recognized settlement loss	0	0
Recognized curtailment gain	(1,000,000)	0
Defined benefit plans	0	(4,000,000)
Defined contribution plans	5,000,000	6,000,000
Net Periodic Benefit Cost (Credit)	5,000,000	2,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss	0	0
Amortization of net actuarial (loss) gain	(14,000,000)	(10,000,000)
Amortization of net prior service credit	0	0
Total Recognized in Other Comprehensive (Loss) Income	(14,000,000)	(10,000,000)
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	(9,000,000)	(8,000,000)
Contributions [Abstract]
Defined benefit plan, contributions by employer	27,000,000	28,000,000	115,000,000
Defined benefit plan, expected future employer contributions	110,000,000
Retiree Health
Components of Net Periodic Benefit Costs:
Service cost	1,000,000	0
Interest cost	2,000,000	4,000,000
Expected return on plan assets	0	0
Recognized net actuarial loss (gain)	0	(1,000,000)
Amortization of prior service credit	(19,000,000)	(19,000,000)
Recognized settlement loss	0	0
Recognized curtailment gain	0	0
Defined benefit plans	(16,000,000)	(16,000,000)
Net Periodic Benefit Cost (Credit)	(16,000,000)	(16,000,000)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss	0	0
Amortization of net actuarial (loss) gain	0	1,000,000
Amortization of net prior service credit	19,000,000	19,000,000
Total Recognized in Other Comprehensive (Loss) Income	19,000,000	20,000,000
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	3,000,000	4,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer	5,000,000	$ 8,000,000	$ 30,000,000
Defined benefit plan, expected future employer contributions	$ 35,000,000

Shareholders' Equity of Xerox Holdings (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,594	$ 5,039
Cumulative effect of change in accounting principle		0
Comprehensive (Loss) Income, Net	(140)	176
Cash dividends declared - common	(54)	(58)
Stock option and incentive plans, net	4	14
Payments to acquire treasury stock, including fees		(103)
Cancellation of treasury stock	0	0
Distributions to noncontrolling interests		(1)
Balance at end of period	$ 5,400	$ 5,063
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25
Dividends per preferred share (in dollars per share)	$ 20.00	$ 20.00
Series B Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared - preferred	$ (4)	$ (4)
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,587	5,005
Comprehensive (Loss) Income, Net	(140)	173
Cash dividends declared - common	(54)	(58)
Stock option and incentive plans, net	4	14
Payments to acquire treasury stock, including fees		(103)
Balance at end of period	5,393	5,027
Xerox Holdings/Xerox Shareholders’ Equity \| Series B Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared - preferred	(4)	(4)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	215	232
Cancellation of treasury stock	(2)	(2)
Balance at end of period	213	230
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	2,782	3,321
Stock option and incentive plans, net	4	14
Cancellation of treasury stock	(74)	(53)
Balance at end of period	2,712	3,282
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(76)	(55)
Payments to acquire treasury stock, including fees	0	(103)
Cancellation of treasury stock	(76)	55
Balance at end of period	0	(103)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,312	5,072
Cumulative effect of change in accounting principle		127
Comprehensive (Loss) Income, Net	(2)	133
Cash dividends declared - common	(54)	(58)
Balance at end of period	6,252	5,270
Retained Earnings \| Series B Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared - preferred	(4)	(4)
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,646)	(3,565)
Cumulative effect of change in accounting principle		(127)
Comprehensive (Loss) Income, Net	(138)	40
Balance at end of period	(3,784)	(3,652)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7	34
Comprehensive (Loss) Income, Net	0	3
Distributions to noncontrolling interests		(1)
Balance at end of period	$ 7	$ 36

Shareholders' Equity of Xerox Holdings - Treasury Stock (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) In Treasury Stock [Roll Forward]
Balance at December 31, 2019 (in shares)	2,031
Balance at December 31, 2019	$ 76
Purchases		$ 103
Cancellations	$ 0	0
Balance at March 31, 2020 (in shares)	0
Balance at March 31, 2020	$ 0
Treasury Stock
Increase (Decrease) In Treasury Stock [Roll Forward]
Balance at December 31, 2019 (in shares)	2,031
Balance at December 31, 2019	$ 76
Purchases (in shares)	0
Purchases	$ 0	103
Cancellations (in shares)	(2,031)
Cancellations	$ (76)	$ 55
Balance at March 31, 2020 (in shares)	0
Balance at March 31, 2020	$ 0

Shareholders' Equity of Xerox (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,594	$ 5,039
Cumulative effect of change in accounting principle		0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(140)	176
Cash dividends declared - common	(54)	(58)
Stock option and incentive plans, net	4	14
Payments to acquire treasury stock, including fees		(103)
Cancellation of treasury stock	0	0
Distributions to noncontrolling interests		(1)
Balance at end of period	5,400	5,063
XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,874	5,039
Cumulative effect of change in accounting principle		0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(140)	176
Cash dividends declared - common		(58)
Cash dividends declared - preferred		(4)
Dividends declared to parent	(290)
Transfers from parent	238
Stock option and incentive plans, net		14
Payments to acquire treasury stock, including fees		(103)
Distributions to noncontrolling interests		(1)
Balance at end of period	5,682	5,063
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,587	5,005
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(140)	173
Cash dividends declared - common	(54)	(58)
Stock option and incentive plans, net	4	14
Payments to acquire treasury stock, including fees		(103)
Balance at end of period	5,393	5,027
Xerox Holdings/Xerox Shareholders’ Equity \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,867	5,005
Cumulative effect of change in accounting principle		0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(140)	173
Cash dividends declared - common		(58)
Cash dividends declared - preferred		(4)
Dividends declared to parent	(290)
Transfers from parent	238
Stock option and incentive plans, net		14
Payments to acquire treasury stock, including fees		(103)
Balance at end of period	5,675	5,027
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	215	232
Cancellation of treasury stock	(2)	(2)
Balance at end of period	213	230
Common Stock \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	232
Stock option and incentive plans, net		0
Cancellation of treasury stock		(2)
Balance at end of period	0	230
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	2,782	3,321
Stock option and incentive plans, net	4	14
Cancellation of treasury stock	(74)	(53)
Balance at end of period	2,712	3,282
Additional Paid-in Capital \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	3,266	3,321
Transfers from parent	238
Stock option and incentive plans, net		14
Cancellation of treasury stock		(53)
Balance at end of period	3,504	3,282
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(76)	(55)
Payments to acquire treasury stock, including fees	0	(103)
Cancellation of treasury stock	(76)	55
Balance at end of period	0	(103)
Treasury Stock \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(55)
Payments to acquire treasury stock, including fees		(103)
Cancellation of treasury stock		55
Balance at end of period	0	(103)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,312	5,072
Cumulative effect of change in accounting principle		127
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(2)	133
Cash dividends declared - common	(54)	(58)
Balance at end of period	6,252	5,270
Retained Earnings \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,247	5,072
Cumulative effect of change in accounting principle		127
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(2)	133
Cash dividends declared - common		(58)
Cash dividends declared - preferred		(4)
Dividends declared to parent	(290)
Balance at end of period	5,955	5,270
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,646)	(3,565)
Cumulative effect of change in accounting principle		(127)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(138)	40
Balance at end of period	(3,784)	(3,652)
AOCL \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,646)	(3,565)
Cumulative effect of change in accounting principle		(127)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(138)	40
Balance at end of period	(3,784)	(3,652)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7	34
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	0	3
Distributions to noncontrolling interests		(1)
Balance at end of period	7	36
Non-controlling Interests \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7	34
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	0	3
Distributions to noncontrolling interests		(1)
Balance at end of period	$ 7	$ 36

Other Comprehensive (Loss) Income (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Equity [Abstract]

$ (204)

$ 37

Translation adjustments (losses) gains, Net of Tax

^[1]

(197)

Unrealized gains (losses), Pre-tax

Changes in fair value of cash flow hedges gains

Changes in cash flow hedges reclassed to earnings

(1)

Net Unrealized gains

Unrealized gains (losses), Net of Tax

Changes in fair value of cash flow hedges gains

Changes in cash flow hedges reclassed to earnings

(1)

Net Unrealized gains

^[1]

Defined benefit plans (losses) gains, Pre-tax

Net actuarial/prior service losses

(12)

(15)

Prior service amortization

(19)

Actuarial loss amortization/settlement

Fuji Xerox changes in defined benefit plans, net

Other gains (losses)

(16)

Changes in defined benefit plans gains

Defined benefit plans (losses) gains, Net of Tax

Net actuarial/prior service losses

(9)

(12)

Prior service amortization

(14)

Actuarial loss amortization/settlement

Fuji Xerox changes in defined benefit plans, net

Other gains (losses)

(16)

Changes in defined benefit plans gains

^[1]

Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox, Pre-tax

(140)

Other Comprehensive (Loss) Income, Net Attributable to Xerox Holdings/Xerox

^[1]

$ (138)

$ 40

[1]	Refer to Note 19 - Other Comprehensive (Loss) Income for gross components of Other comprehensive (loss) income, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Other Comprehensive (Loss) Income - Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Cumulative translation adjustments	$ (2,158)	$ (1,961)
Other unrealized gains (losses), net	3	(2)
Benefit plans net actuarial losses and prior service credits	(1,629)	(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox	$ (3,784)	$ (3,646)