Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Xerox Corporation | ||
Entity Central Index Key | 108772 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 1,112,199,705 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $14,345,220,956 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | ||||||
Sales | $5,288 | $5,582 | $5,827 | |||
Outsourcing, maintenance and rentals | 13,865 | 13,941 | 13,997 | |||
Financing | 387 | [1] | 483 | [1] | 597 | [1] |
Total Revenues | 19,540 | [1] | 20,006 | [1] | 20,421 | [1] |
Costs and Expenses | ||||||
Cost of sales | 3,269 | 3,550 | 3,701 | |||
Cost of outsourcing, maintenance and rentals | 9,885 | 9,808 | 9,735 | |||
Cost of financing | 140 | 163 | 198 | |||
Research, development and engineering expenses | 577 | 603 | 655 | |||
Selling, administrative and general expenses | 3,788 | 4,073 | 4,141 | |||
Restructuring and asset impairment charges | 128 | 115 | 149 | |||
Amortization of intangible assets | 315 | 305 | 301 | |||
Other expenses, net | 232 | 146 | 257 | |||
Total Costs and Expenses | 18,334 | 18,763 | 19,137 | |||
Income Before Income Taxes and Equity Income | 1,206 | 1,243 | 1,284 | |||
Income tax expense - continuing operations | 259 | 253 | 256 | |||
Equity in net income of unconsolidated affiliates | 160 | [1] | 169 | [1] | 152 | [1] |
Income from Continuing Operations | 1,107 | 1,159 | 1,180 | |||
(Loss) income from discontinued operations, net of tax | -115 | 20 | 43 | |||
Net Income | 992 | 1,179 | 1,223 | |||
Less: Net income attributable to noncontrolling interests | 23 | 20 | 28 | |||
Net Income Attributable to Xerox | 969 | 1,159 | 1,195 | |||
Net income from continuing operations | $1,084 | $1,139 | $1,152 | |||
Continuing operations (in dollars per share) | $0.92 | $0.91 | $0.87 | |||
Discontinued operations (in dollars per share) | ($0.10) | $0.02 | $0.03 | |||
Total Basic Earnings per Share (in dollars per share) | $0.82 | $0.93 | $0.90 | |||
Continuing operations (in dollars per share) | $0.90 | $0.89 | $0.85 | |||
Discontinued operations (in dollars per share) | ($0.09) | $0.02 | $0.03 | |||
Total Diluted Earnings per Share (in dollars per share) | $0.81 | $0.91 | $0.88 | |||
[1] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net Income | $992 | $1,179 | $1,223 | |||
Less: Net income attributable to noncontrolling interests | 23 | 20 | 28 | |||
Net Income Attributable to Xerox | 969 | 1,159 | 1,195 | |||
Translation adjustments, net | -734 | [1] | -185 | [1] | 113 | [1] |
Unrealized gains (losses), net | 15 | [1] | 0 | [1] | -63 | [1] |
Changes in defined benefit plans, net | -662 | [1] | 632 | [1] | -561 | [1] |
Other Comprehensive (Loss) Income, Net | -1,381 | [1] | 447 | [1] | -511 | [1] |
Less: Other comprehensive loss, net attributable to noncontrolling interests | -1 | [1] | -1 | [1] | 0 | [1] |
Other Comprehensive (Loss) Income, Net Attributable to Xerox | -1,380 | [1] | 448 | [1] | -511 | [1] |
Comprehensive (Loss) Income, Net | -389 | 1,626 | 712 | |||
Less: Comprehensive income, net attributable to noncontrolling interests | 22 | 19 | 28 | |||
Comprehensive (Loss) Income, Net Attributable to Xerox | ($411) | $1,607 | $684 | |||
[1] | Refer to Note 21 - Other Comprehensive (Loss) Income for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $1,411 | $1,764 |
Accounts receivable, net | 2,652 | 2,929 |
Billed portion of finance receivables, net | 110 | 113 |
Finance receivables, net | 1,425 | 1,500 |
Inventories | 934 | 998 |
Assets of discontinued operations | 1,260 | 0 |
Other current assets | 1,082 | 1,207 |
Total current assets | 8,874 | 8,511 |
Finance receivables due after one year, net | 2,719 | 2,917 |
Equipment on operating leases, net | 525 | 559 |
Land, buildings and equipment, net | 1,123 | 1,466 |
Investments in affiliates, at equity | 1,338 | 1,285 |
Intangible assets, net | 2,031 | 2,503 |
Goodwill | 8,805 | 9,205 |
Other long-term assets | 2,243 | 2,590 |
Total Assets | 27,658 | 29,036 |
Liabilities and Equity | ||
Short-term debt and current portion of long-term debt | 1,427 | 1,117 |
Accounts payable | 1,584 | 1,626 |
Accrued compensation and benefits costs | 754 | 734 |
Unearned income | 431 | 496 |
Liabilities of discontinued operations | 371 | 0 |
Other current liabilities | 1,509 | 1,713 |
Total current liabilities | 6,076 | 5,686 |
Long-term debt | 6,314 | 6,904 |
Pension and other benefit liabilities | 2,847 | 2,136 |
Post-retirement medical benefits | 865 | 785 |
Other long-term liabilities | 498 | 757 |
Total Liabilities | 16,600 | 16,268 |
Series A Convertible Preferred Stock | 349 | 349 |
Common stock | 1,124 | 1,210 |
Additional paid-in capital | 4,283 | 5,282 |
Treasury stock, at cost | -105 | -252 |
Retained earnings | 9,491 | 8,839 |
Accumulated other comprehensive loss | -4,159 | -2,779 |
Xerox shareholders’ equity | 10,634 | 12,300 |
Noncontrolling interests | 75 | 119 |
Total Equity | 10,709 | 12,419 |
Total Liabilities and Equity | $27,658 | $29,036 |
Shares of common stock issued | 1,124,354 | 1,210,321 |
Treasury stock | -7,609 | -22,001 |
Shares of common stock outstanding | 1,116,745 | 1,188,320 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net income | $992 | $1,179 | $1,223 |
Adjustments required to reconcile net income to cash flows from operating activities: | |||
Depreciation and amortization | 1,426 | 1,358 | 1,301 |
Provision for receivables | 53 | 123 | 127 |
Provision for inventory | 26 | 35 | 30 |
Deferred tax expense | 113 | 117 | 105 |
Net loss (gain) on sales of businesses and assets | 134 | -45 | 2 |
Undistributed equity in net income of unconsolidated affiliates | -91 | -92 | -90 |
Stock-based compensation | 91 | 90 | 125 |
Restructuring and asset impairment charges | 130 | 116 | 154 |
Payments for restructurings | -133 | -136 | -144 |
Contributions to defined benefit pension plans | -284 | -230 | -364 |
Increase in accounts receivable and billed portion of finance receivables | -436 | -576 | -776 |
Collections of deferred proceeds from sales of receivables | 434 | 482 | 470 |
Increase in inventories | -22 | -38 | 0 |
Increase in equipment on operating leases | -283 | -303 | -276 |
(Increase) decrease in finance receivables | -10 | 609 | 947 |
Collections on beneficial interest from sales of finance receivables | 79 | 58 | 0 |
Increase in other current and long-term assets | -159 | -145 | -265 |
Increase (decrease) in accounts payable and accrued compensation | 128 | -29 | 120 |
Decrease in other current and long-term liabilities | -64 | -50 | -71 |
Net change in income tax assets and liabilities | 29 | 8 | 33 |
Net change in derivative assets and liabilities | -14 | -11 | 11 |
Other operating, net | -76 | -145 | -82 |
Net cash provided by operating activities | 2,063 | 2,375 | 2,580 |
Cash Flows from Investing Activities: | |||
Cost of additions to land, buildings and equipment | -368 | -346 | -388 |
Proceeds from sales of land, buildings and equipment | 54 | 86 | 9 |
Cost of additions to internal use software | -84 | -81 | -125 |
Proceeds from sale of businesses | 26 | 26 | 0 |
Acquisitions, net of cash acquired | -340 | -155 | -276 |
Other investing, net | 9 | 18 | 19 |
Net cash used in investing activities | -703 | -452 | -761 |
Cash Flows from Financing Activities: | |||
Net payments on debt | -175 | -434 | -108 |
Common stock dividends | -289 | -272 | -231 |
Preferred stock dividends | -24 | -24 | -24 |
Proceeds from issuances of common stock | 55 | 124 | 44 |
Excess tax benefits from stock-based compensation | 18 | 16 | 10 |
Payments to acquire treasury stock, including fees | -1,071 | -696 | -1,052 |
Repurchases related to stock-based compensation | -41 | -57 | -42 |
Distributions to noncontrolling interests | -87 | -56 | -69 |
Other financing | -10 | -3 | 0 |
Net cash used in financing activities | -1,624 | -1,402 | -1,472 |
Effect of exchange rate changes on cash and cash equivalents | -89 | -3 | -3 |
(Decrease) increase in cash and cash equivalents | -353 | 518 | 344 |
Cash and cash equivalents at beginning of year | 1,764 | 1,246 | 902 |
Cash and Cash Equivalents at End of Year | $1,411 | $1,764 | $1,246 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Xerox Shareholders' Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCL [Member] | Noncontrolling Interests [Member] | ||||||||
Total Equity Beginning Balance at Dec. 31, 2011 | $12,025,000,000 | |||||||||||||||
Noncontrolling Interests Beginning Balance at Dec. 31, 2011 | 149,000,000 | |||||||||||||||
Beginning Balance at Dec. 31, 2011 | 11,876,000,000 | 1,353,000,000 | 6,317,000,000 | -124,000,000 | 7,046,000,000 | -2,716,000,000 | [1] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Comprehensive income (loss), net | 684,000,000 | 684,000,000 | 0 | 0 | 0 | 1,195,000,000 | -511,000,000 | [1] | ||||||||
Comprehensive income net (loss), attributable to noncontrolling interest | 28,000,000 | 28,000,000 | ||||||||||||||
Comprehensive income net (loss), including portion attributable to noncontrolling interest | 712,000,000 | |||||||||||||||
Cash dividends declared-common | [2] | 226,000,000 | 226,000,000 | 0 | 0 | 0 | 226,000,000 | 0 | [1] | 0 | ||||||
Cash dividends declared-preferred stock | [3] | -24,000,000 | -24,000,000 | 0 | 0 | 0 | -24,000,000 | 0 | [1] | 0 | ||||||
Contribution of common stock to U.S. pension plan | 130,000,000 | 130,000,000 | 15,000,000 | 115,000,000 | 0 | 0 | 0 | [1] | 0 | |||||||
Stock option and incentive plans, net | 133,000,000 | 133,000,000 | 18,000,000 | 115,000,000 | 0 | 0 | 0 | [1] | 0 | |||||||
Payments to acquire treasury stock, including fees | -1,052,000,000 | -1,052,000,000 | 0 | 0 | -1,052,000,000 | 0 | 0 | [1] | 0 | |||||||
Cancellation of treasury stock | 0 | 0 | -147,000,000 | -925,000,000 | 1,072,000,000 | 0 | 0 | [1] | 0 | |||||||
Distributions to noncontrolling interests | -34,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | -34,000,000 | |||||||
Total Equity Ending Balance at Dec. 31, 2012 | 11,664,000,000 | |||||||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2012 | 143,000,000 | |||||||||||||||
Ending Balance at Dec. 31, 2012 | 11,521,000,000 | 1,239,000,000 | 5,622,000,000 | -104,000,000 | 7,991,000,000 | -3,227,000,000 | [1] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Comprehensive income (loss), net | 1,607,000,000 | 1,607,000,000 | 0 | 0 | 0 | 1,159,000,000 | 448,000,000 | [1] | ||||||||
Comprehensive income net (loss), attributable to noncontrolling interest | 19,000,000 | 19,000,000 | ||||||||||||||
Comprehensive income net (loss), including portion attributable to noncontrolling interest | 1,626,000,000 | |||||||||||||||
Cash dividends declared-common | [2] | 287,000,000 | 287,000,000 | 0 | 0 | 0 | 287,000,000 | 0 | [1] | 0 | ||||||
Cash dividends declared-preferred stock | [3] | -24,000,000 | -24,000,000 | 0 | 0 | 0 | -24,000,000 | 0 | [1] | 0 | ||||||
Conversion of notes to common stock | 9,000,000 | [3] | 9,000,000 | [3] | 1,000,000 | 8,000,000 | [3] | 0 | [3] | 0 | [3] | 0 | [1],[3] | 0 | [3] | |
Stock option and incentive plans, net | 170,000,000 | 170,000,000 | 28,000,000 | 142,000,000 | 0 | 0 | 0 | [1] | 0 | |||||||
Payments to acquire treasury stock, including fees | -696,000,000 | -696,000,000 | 0 | 0 | -696,000,000 | 0 | 0 | [1] | 0 | |||||||
Cancellation of treasury stock | 0 | 0 | -58,000,000 | -490,000,000 | 548,000,000 | 0 | 0 | [1] | 0 | |||||||
Distributions to noncontrolling interests | -43,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | -43,000,000 | |||||||
Total Equity Ending Balance at Dec. 31, 2013 | 12,419,000,000 | |||||||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2013 | 119,000,000 | 119,000,000 | ||||||||||||||
Ending Balance at Dec. 31, 2013 | 12,300,000,000 | 12,300,000,000 | 1,210,000,000 | 5,282,000,000 | -252,000,000 | 8,839,000,000 | -2,779,000,000 | [1] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Comprehensive income (loss), net | -411,000,000 | -411,000,000 | 0 | 0 | 0 | 969,000,000 | -1,380,000,000 | [1] | ||||||||
Comprehensive income net (loss), attributable to noncontrolling interest | 22,000,000 | 22,000,000 | ||||||||||||||
Comprehensive income net (loss), including portion attributable to noncontrolling interest | -389,000,000 | |||||||||||||||
Cash dividends declared-common | [2] | 293,000,000 | 293,000,000 | 0 | 0 | 0 | 293,000,000 | 0 | [1] | 0 | ||||||
Cash dividends declared-preferred stock | [3] | -24,000,000 | -24,000,000 | 0 | 0 | 0 | -24,000,000 | 0 | [1] | 0 | ||||||
Conversion of notes to common stock | 9,000,000 | [2] | 9,000,000 | [3] | 1,000,000 | 8,000,000 | [3] | 0 | [3] | 0 | [3] | 0 | [1],[3] | 0 | [3] | |
Stock option and incentive plans, net | 124,000,000 | 124,000,000 | 14,000,000 | 110,000,000 | 0 | 0 | 0 | [1] | 0 | |||||||
Payments to acquire treasury stock, including fees | -1,071,000,000 | -1,071,000,000 | 0 | 0 | -1,071,000,000 | 0 | 0 | [1] | 0 | |||||||
Cancellation of treasury stock | 0 | 0 | -101,000,000 | -1,117,000,000 | 1,218,000,000 | 0 | 0 | [1] | 0 | |||||||
Distributions to noncontrolling interests | -66,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | -66,000,000 | |||||||
Total Equity Ending Balance at Dec. 31, 2014 | 10,709,000,000 | |||||||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2014 | 75,000,000 | 75,000,000 | ||||||||||||||
Ending Balance at Dec. 31, 2014 | $10,634,000,000 | $10,634,000,000 | $1,124,000,000 | $4,283,000,000 | ($105,000,000) | $9,491,000,000 | ($4,159,000,000) | [1] | ||||||||
[1] | (3)AOCL - Accumulated other comprehensive loss. | |||||||||||||||
[2] | (1)Cash dividends declared on common stock of $0.0625 in each quarter of 2014, $0.0575 in each quarter of 2013 and $0.0425 in each quarter of 2012. | |||||||||||||||
[3] | (2)Cash dividends declared on preferred stock of $20 per share in each quarter of 2014, 2013 and 2012. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Dividends per common share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 |
Dividends per preferred share (in dollars per share) | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||||||
References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context suggests otherwise. | |||||||||||||
Description of Business and Basis of Presentation | |||||||||||||
Xerox is a $19.5 billion global enterprise for business process and document management solutions. We are one of the largest diversified business process outsourcing company worldwide, with an expertise in managing transaction-intensive processes. This includes services that support enterprises through multi-industry offerings such as customer care, transaction processing, finance and accounting, and human resources, as well as industry focused offerings in areas such as healthcare, transportation, financial services, retail and telecommunications. We also provide extensive leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size. | |||||||||||||
Basis of Consolidation | |||||||||||||
The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. | |||||||||||||
We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. | |||||||||||||
For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements. | |||||||||||||
In December 2014, we announced an agreement to sell our Information Technology Outsourcing (ITO) business to Atos SE (Atos); the sale is expected to close in the first half of 2015. As a result of the pending sale and having met applicable accounting requirements, we reported the ITO business as held for sale and a discontinued operation at December 31, 2014. In 2014 we also completed the disposal of two smaller businesses - Xerox Audio Visual Solutions, Inc. (XAV) and Truckload Management Services (TMS) - that were also reported as discontinued operations. All prior periods have been reclassified to conform to this presentation. In 2013 we completed the sale of our U.S. and Canadian (North American or N.A.) and Western European (European) Paper businesses. Results from these paper-related businesses are reported as Discontinued Operations and all prior period results have been reclassified to conform to this presentation. Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. | |||||||||||||
The following table summarizes certain significant costs and expenses that require management estimates for the three years ended December 31, 2014: | |||||||||||||
Year Ended December 31, | |||||||||||||
Expense/(Income) | 2014 | 2013 | 2012 | ||||||||||
Provisions for restructuring and asset impairments - continuing operations | $ | 128 | $ | 115 | $ | 149 | |||||||
Provisions for restructuring and asset impairments - discontinued operations | 2 | 7 | 4 | ||||||||||
Provision for receivables | 53 | 123 | 127 | ||||||||||
Provisions for litigation and regulatory matters | 11 | (34 | ) | (1 | ) | ||||||||
Provisions for obsolete and excess inventory | 26 | 35 | 30 | ||||||||||
Provision for product warranty liability | 25 | 28 | 29 | ||||||||||
Depreciation and obsolescence of equipment on operating leases | 297 | 283 | 279 | ||||||||||
Depreciation of buildings and equipment (1) | 324 | 332 | 354 | ||||||||||
Amortization of internal use software (1) | 139 | 137 | 114 | ||||||||||
Amortization of product software | 62 | 43 | 19 | ||||||||||
Amortization of acquired intangible assets (1) | 315 | 305 | 301 | ||||||||||
Amortization of customer contract costs (1) | 128 | 100 | 92 | ||||||||||
Defined pension benefits - net periodic benefit cost | 82 | 267 | 300 | ||||||||||
Retiree health benefits - net periodic benefit cost | 3 | 1 | 11 | ||||||||||
Income tax expense - continuing operations | 259 | 253 | 256 | ||||||||||
Income tax expense - discontinued operations | 6 | 27 | 21 | ||||||||||
__________________ | |||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||
Changes in Estimates | |||||||||||||
In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations. | |||||||||||||
New Accounting Standards and Accounting Changes | |||||||||||||
Except for the Accounting Standard Updates (ASU's) discussed below, the new ASU's issued by the FASB during the last two years did not have any significant impact on the Company. | |||||||||||||
Income Statement | |||||||||||||
In January 2015, the FASB issued ASU 2015-01 Income Statement-Extraordinary and Unusual Items (Subtopic 225-20) - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for our fiscal year ending December 31, 2016, with early adoption permitted. The standard primarily involves presentation and disclosure and, therefore, is not expected to have a material impact on our financial condition, results of operations or cash flows. | |||||||||||||
Business Combinations | |||||||||||||
In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805) - Pushdown Accounting. The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements. ASU 2014-17 was effective on November 18, 2014. The adoption of this standard did not have a material impact on our financial condition or results of operations. | |||||||||||||
Derivatives and Hedging | |||||||||||||
In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815) - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. ASU 2014-16 does not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. ASU 2014-16 is effective for our fiscal year ending December 31, 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on our financial condition or results of operations. | |||||||||||||
Disclosures of Going Concern Uncertainties | |||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 provides guidance regarding management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for our fiscal year ending December 31, 2016, with early adoption permitted. We do not expect the adoption of this standard to have an impact on our consolidated financial statements. | |||||||||||||
Stock Compensation | |||||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update is effective for our fiscal year beginning January 1, 2016 and early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our financial condition, results of operations or cash flows. | |||||||||||||
Revenue Recognition | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for our fiscal year beginning January 1, 2017 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. | |||||||||||||
Discontinued Operations | |||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update changes the requirements for reporting discontinued operations in Subtopic 205-20. A discontinued operation may include a component of an entity or a group of components of an entity, or a business. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business or a major equity method investment. | |||||||||||||
Additionally, the update requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. This update is effective prospectively for our fiscal year beginning January 1, 2015. The standard primarily involves presentation and disclosure and, therefore, is not expected to have a material impact on our financial condition, results of operations or cash flows. | |||||||||||||
Service Concession Arrangements | |||||||||||||
In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853). This update specifies that an entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. The update does not provide specific accounting guidance for various aspects of service concession arrangements but rather indicates that an entity should refer to other Topics as applicable to account for various aspects of a service concession arrangement. The update is effective for our fiscal year beginning January 1, 2015. The adoption of this standard is not expected to have a material effect on our financial condition, results of operation or cash flows. | |||||||||||||
Income Taxes | |||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update provides guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, exists. This update was effective prospectively for our fiscal year beginning January 1, 2014. Upon adoption of this standard, we reclassified approximately $180 of liabilities for unrecognized tax benefits against deferred tax assets. | |||||||||||||
Hedge Accounting | |||||||||||||
In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index | |||||||||||||
Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The update permits the Fed Funds | |||||||||||||
Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC | |||||||||||||
Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government (UST) and the | |||||||||||||
London Interbank Offered Rate (LIBOR). The update also removes the restriction on using different benchmark | |||||||||||||
rates for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or re-designated hedging | |||||||||||||
relationships entered into on or after July 17, 2013. The adoption of this standard did not have a material impact on | |||||||||||||
our financial condition or results of operations. | |||||||||||||
Cumulative Translation Adjustments | |||||||||||||
In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (Topic 830). The objective of ASU 2013-05 is to resolve the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This update was effective prospectively for our fiscal year beginning January 1, 2014, and did not have nor is it expected to have a material impact on our financial condition, results of operations or cash flows. | |||||||||||||
Summary of Accounting Policies | |||||||||||||
Revenue Recognition | |||||||||||||
We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows: | |||||||||||||
Equipment-Related Revenues | |||||||||||||
Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis. | |||||||||||||
Technical Services: Technical service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. | |||||||||||||
Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract. | |||||||||||||
Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.” | |||||||||||||
Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. | |||||||||||||
Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product. | |||||||||||||
Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. | |||||||||||||
In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. | |||||||||||||
Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms. | |||||||||||||
Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement. | |||||||||||||
Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. | |||||||||||||
We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. | |||||||||||||
With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. | |||||||||||||
Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. | |||||||||||||
Services-Related Revenue | |||||||||||||
Outsourcing: Revenues associated with outsourcing services are generally recognized as services are rendered, which is generally on the basis of the number of accounts or transactions processed. Information technology processing revenues are recognized as services are provided to the customer, generally at the contractual selling prices of resources consumed or capacity utilized by our customers. In those service arrangements where final acceptance of a system or solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on cost reimbursable contracts are recognized by applying an estimated factor to costs as incurred, determined by the contract provisions and prior experience. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. Revenues on time and material contracts are recognized at the contractual rates as the labor hours and direct expenses are incurred. | |||||||||||||
Revenues on certain fixed price contracts where we provide system development and implementation services are recognized over the contract term based on the percentage of development and implementation services that are provided during the period compared with the total estimated development and implementation services to be provided over the entire contract using the percentage-of-completion accounting methodology. These services require that we perform significant, extensive and complex design, development, modification or implementation of our customers' systems. Performance will often extend over long periods, and our right to receive future payment depends on our future performance in accordance with the agreement. | |||||||||||||
The percentage-of-completion methodology involves recognizing probable and reasonably estimable revenue using the percentage of services completed, on a current cumulative cost to estimated total cost basis, using a reasonably consistent profit margin over the period. | |||||||||||||
Revenues earned in excess of related billings are accrued, whereas billings in excess of revenues earned are deferred until the related services are provided. We recognize revenues for non-refundable, upfront implementation fees on a straight-line basis over the period between the initiation of the ongoing services through the end of the contract term. | |||||||||||||
In connection with our services arrangements, we incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. Certain initial direct costs of an arrangement are capitalized and amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. | |||||||||||||
Spending associated with customer-related deferred set-up/transition and inducement costs was $80, $107 and $109 in 2014, 2013 and 2012, respectively, excluding the ITO business(1). At December 31, 2014 and 2013 the balance of deferred costs was $323 (of which $96 relates to our ITO business(1)) and $399, respectively. The balance at December 31, 2014 excluding ITO of $227, is expected to be amortized over a weighted average period of approximately 7 years and amortization expense in 2015 is expected to be approximately $94. | |||||||||||||
Long-lived assets used in the fulfillment of the arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. | |||||||||||||
Our outsourcing services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenue. | |||||||||||||
-1 | Our ITO business is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||
Other Revenue Recognition Policies | |||||||||||||
Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables: | |||||||||||||
• | Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above. | ||||||||||||
• | Contracts for multiple types of outsourcing services, as well as professional and value-added services. For instance, we may contract for an implementation or development project and also provide services to operate the system over a period of time; or we may contract to scan, manage and store customer documents. | ||||||||||||
In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria: | |||||||||||||
• | The delivered item(s) has value to the customer on a stand-alone basis; and | ||||||||||||
• | If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. | ||||||||||||
Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable. | |||||||||||||
Revenue-based taxes: We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The primary revenue-based taxes are sales tax and value-added tax (VAT). | |||||||||||||
Other Significant Accounting Policies | |||||||||||||
Shipping and Handling | |||||||||||||
Costs related to shipping and handling are recognized as incurred and included in Cost of sales in the Consolidated Statements of Income. | |||||||||||||
Research, Development and Engineering (RD&E) | |||||||||||||
Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $132, $122 and $110 in 2014, 2013 and 2012, respectively. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less. | |||||||||||||
Receivable Sales | |||||||||||||
We regularly transfer certain portions of our receivable portfolios and normally account for those transfers as sales based on meeting the criteria for derecognition in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Gains or losses on the sale of receivables depend, in part, on both (a) the cash proceeds and (b) the net non-cash proceeds received or paid. When we sell receivables we normally receive beneficial interests in the transferred receivables from the purchasers as part of the proceeds. We may refer to these beneficial interests as a deferred purchase price. The beneficial interests obtained are initially measured at their fair value. We generally estimate fair value based on the present value of expected future cash flows, which are calculated using management's best estimates of the key assumptions including credit losses, prepayment rate and discount rates commensurate with the risks involved. Refer to Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net for more details on our receivable sales. | |||||||||||||
Inventories | |||||||||||||
Inventories are carried at the lower of average cost or market. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which normally are not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations. | |||||||||||||
Land, Buildings and Equipment and Equipment on Operating Leases | |||||||||||||
Land, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 7 - Inventories and Equipment on Operating Leases, Net and Note 8 - Land, Buildings, Equipment and Software, Net for further discussion. | |||||||||||||
Software - Internal Use and Product | |||||||||||||
We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. | |||||||||||||
We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. | |||||||||||||
Refer to Note 8 - Land, Buildings, Equipment and Software, Net for further information. | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized but rather is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. | |||||||||||||
Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a "component") if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. | |||||||||||||
When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and perform a detailed quantitative test of impairment (Step 1). If we perform the detailed quantitative impairment test and the carrying amount of the reporting unit exceeds its fair value, we would perform an analysis (Step 2) to measure such impairment. In 2014, we elected to proceed to the quantitative assessment of the recoverability of our goodwill balances for each of our reporting units in performing our annual impairment test. Based on our quantitative assessments, we concluded that the fair values of each of our reporting units in 2014 exceeded their carrying values and no impairments were identified. | |||||||||||||
Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, patents on existing technology and trademarks. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. | |||||||||||||
Refer to Note 10 - Goodwill and Intangible Assets, Net for further information. | |||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
We review the recoverability of our long-lived assets, including buildings, equipment, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. | |||||||||||||
Pension and Post-Retirement Benefit Obligations | |||||||||||||
We sponsor defined benefit pension plans in various forms in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost, are recognized in Accumulated Other Comprehensive Loss, net of tax. | |||||||||||||
Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms). | |||||||||||||
For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach. | |||||||||||||
The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments. | |||||||||||||
Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the "corridor" method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants. | |||||||||||||
Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant's vested benefit is considered fully settled upon payment of the lump-sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested benefit. | |||||||||||||
Refer to Note 16 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement Benefit Obligations. | |||||||||||||
Foreign Currency Translation and Re-measurement | |||||||||||||
The functional currency for most foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss. | |||||||||||||
The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars. A combination of current and historical exchange rates is used in re-measuring the local currency transactions of these subsidiaries and the resulting exchange adjustments are recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurments. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Reporting | Segment Reporting | ||||||||||||||||||||||||
Our reportable segments are aligned with how we manage the business and view the markets we serve. We report our financial performance based on the following two primary reportable segments – Services and Document Technology. Our Services segment operations involve the delivery of business process and document outsourcing services for a broad range of customers from small businesses to large global enterprises. | |||||||||||||||||||||||||
Our Document Technology segment includes the sale and support of a broad range of document systems from entry level to high-end. | |||||||||||||||||||||||||
The Services segment is comprised of two outsourcing service offerings: | |||||||||||||||||||||||||
• | Business Process Outsourcing (BPO) | ||||||||||||||||||||||||
• | Document Outsourcing (which includes Managed Print Services) (DO) | ||||||||||||||||||||||||
Business process outsourcing services include service arrangements where we manage a customer's business activity or process. We provide multi-industry offerings such as customer care, transaction processing, finance and accounting, and human resources, as well as industry focused offerings in areas such as healthcare, transportation, financial services, retail and telecommunications. Document outsourcing services include service arrangements that allow customers to streamline, simplify and digitize their document-intensive business processes through automation and deployment of software applications and tools and the management of their printing needs. Document outsourcing also includes revenues from our partner print services offerings. | |||||||||||||||||||||||||
As discussed in Note 4 - Divestitures, in December 2014 we announced an agreement to sell our Information Technology Outsourcing (ITO) business to Atos; the sale is expected to close in the first half of 2015. As a result of the pending sale and having met applicable accounting requirements, we reported the ITO business as a discontinued operation and reclassified their results from the Services segment to Discontinued Operations. All prior periods have been reclassified to conform to this presentation. | |||||||||||||||||||||||||
Our Document Technology segment includes the sale of document systems and supplies, provision of technical service and financing of products. Our product groupings range from: | |||||||||||||||||||||||||
• | “Entry,” which includes A4 devices and desktop printers; to | ||||||||||||||||||||||||
• | “Mid-range,” which includes A3 devices that generally serve workgroup environments in mid to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100K and Light Production 91+ ppm priced at less than $100K; to | ||||||||||||||||||||||||
• | “High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises. | ||||||||||||||||||||||||
Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers. Segment revenues reflect the sale of document systems and supplies, technical services and product financing. | |||||||||||||||||||||||||
The segment classified as Other includes several units, none of which meet the thresholds for separate segment reporting. This group includes paper sales in our developing market countries, Wide Format Systems, licensing revenues, GIS network integration solutions and electronic presentation systems and non-allocated corporate items including non-financing interest, as well as other items included in Other expenses, net. | |||||||||||||||||||||||||
As discussed in Note 4 - Divestitures, during 2013 we completed the sales of our North American and European Paper business. As a result, in 2013 we began to report our North American and European paper-related operations as Discontinued Operations and reclassified their results from the Other segment to Discontinued Operations. All prior periods were reclassified to conform to this presentation. | |||||||||||||||||||||||||
Selected financial information for our Reportable segments was as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
Services | Document Technology | Other | Total | ||||||||||||||||||||||
2014 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,519 | $ | 8,044 | $ | 590 | $ | 19,153 | |||||||||||||||||
Finance income | 65 | 314 | 8 | 387 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,584 | $ | 8,358 | $ | 598 | $ | 19,540 | |||||||||||||||||
Interest expense | $ | 18 | $ | 121 | $ | 238 | $ | 377 | |||||||||||||||||
Segment profit (loss)(2) | 956 | 1,149 | (272 | ) | 1,833 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 32 | 128 | — | 160 | |||||||||||||||||||||
2013 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,412 | $ | 8,500 | $ | 611 | $ | 19,523 | |||||||||||||||||
Finance income | 67 | 408 | 8 | 483 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,479 | $ | 8,908 | $ | 619 | $ | 20,006 | |||||||||||||||||
Interest expense | $ | 19 | $ | 140 | $ | 244 | $ | 403 | |||||||||||||||||
Segment profit (loss)(2) | 1,055 | 964 | (217 | ) | 1,802 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 34 | 135 | — | 169 | |||||||||||||||||||||
2012 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,196 | $ | 8,951 | $ | 677 | $ | 19,824 | |||||||||||||||||
Finance income | 75 | 511 | 11 | 597 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,271 | $ | 9,462 | $ | 688 | $ | 20,421 | |||||||||||||||||
Interest expense | $ | 19 | $ | 172 | $ | 236 | $ | 427 | |||||||||||||||||
Segment profit (loss)(2) | 1,091 | 1,065 | (254 | ) | 1,902 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 30 | 122 | — | 152 | |||||||||||||||||||||
____________________________ | |||||||||||||||||||||||||
-1 | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | ||||||||||||||||||||||||
-2 | Depreciation and amortization expense, which is recorded in Cost of Sales, Cost of Services, RD&E and SAG are included in segment profit above. This information is neither identified nor internally reported to our CODM. | ||||||||||||||||||||||||
The following is a reconciliation of segment profit to pre-tax income: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
Segment Profit Reconciliation to Pre-tax Income | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Total Segment Profit | $ | 1,833 | $ | 1,802 | $ | 1,902 | |||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||||
Amortization of intangible assets | (315 | ) | (305 | ) | (301 | ) | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | (160 | ) | (169 | ) | (152 | ) | |||||||||||||||||||
Restructuring and related costs(1) | (149 | ) | (115 | ) | (149 | ) | |||||||||||||||||||
Restructuring charges of Fuji Xerox | (3 | ) | (9 | ) | (16 | ) | |||||||||||||||||||
Litigation matters | — | 37 | — | ||||||||||||||||||||||
Other | — | 2 | — | ||||||||||||||||||||||
Pre-tax Income | $ | 1,206 | $ | 1,243 | $ | 1,284 | |||||||||||||||||||
____________________________ | |||||||||||||||||||||||||
-1 | 2014 includes Restructuring and asset impairment charges of $128 and Business transformation costs of $21. Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs. | ||||||||||||||||||||||||
Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for the three years ended December 31: | |||||||||||||||||||||||||
Revenues | Long-Lived Assets (1) (2) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
United States | $ | 13,041 | $ | 13,272 | $ | 13,323 | $ | 1,758 | $ | 1,870 | $ | 1,966 | |||||||||||||
Europe | 4,428 | 4,414 | 4,599 | 632 | 761 | 784 | |||||||||||||||||||
Other areas | 2,071 | 2,320 | 2,499 | 240 | 243 | 262 | |||||||||||||||||||
Total Revenues and Long-Lived Assets | $ | 19,540 | $ | 20,006 | $ | 20,421 | $ | 2,630 | $ | 2,874 | $ | 3,012 | |||||||||||||
________________ | |||||||||||||||||||||||||
-1 | Long-lived assets are comprised of (i) land, buildings and equipment, net, (ii) equipment on operating leases, net, (iii) internal use software, net and (iv) product software, net. | ||||||||||||||||||||||||
-2 | Long-lived assets at December 31, 2014 includes $241 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Acquisitions | Acquisitions | ||||||
2014 Acquisitions | |||||||
In September 2014, we acquired Consilience Software, Inc. (Consilience) for approximately $25 in cash. Consilience provides case management and workflow automation software solutions to the public sector. Consilience's proprietary Maven Case Management software system uses data and process analytics to help government agencies extract more value from their information. The intelligent case management system automates workflows for document- and labor-intensive processes and integrates previously siloed legacy systems for accelerated decision-making. | |||||||
In May 2014, we acquired ISG Holdings, Inc. (ISG) for approximately $225 in cash. The acquisition of ISG enhances our Services segment by providing a comprehensive workers' compensation suite of offerings to the property and casualty sector. In addition, the acquisition expands our services to property and casualty insurance carriers, third-party administrators, managed care services providers, governments and self-administered employers who require comprehensive reviews of medical bills and implementation of care management plans stemming from workers' compensation claims. | |||||||
In January 2014, we acquired Invoco Holding GmbH (Invoco), a German company, for approximately $54 (€40 million) in cash. The acquisition of Invoco expands our European customer care services and provides our global customers immediate access to German-language customer care services and provides Invoco's existing customers access to our broad business process outsourcing capabilities. | |||||||
The 2014 acquisitions noted above are included in our Services segment. Additionally, during 2014, our Services segment acquired one additional business for $2 in cash and our Document Technology segment acquired two businesses for approximately $34 in cash, which expanded our distribution capability of products and services in North America. | |||||||
2014 Summary | |||||||
All of our 2014 acquisitions reflected 100% ownership of the acquired companies. The operating results of the acquisitions described above are not material to our financial statements and are included within our results from their respective acquisition dates. Our 2014 acquisitions contributed aggregate revenues of approximately $132 to our 2014 total revenues from their respective acquisition dates. The purchase prices for all acquisitions were primarily allocated to intangible assets and goodwill based on third-party valuations and management's estimates. The primary elements that generated the goodwill are the value of synergies and the acquired assembled workforce. Approximately 50% of the goodwill recorded in 2014 is expected to be deductible for tax purposes. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information. | |||||||
The following table summarizes the purchase price allocations for our 2014 acquisitions as of the acquisition dates: | |||||||
Weighted-Average Life (Years) | Total 2014 Acquisitions | ||||||
Accounts/finance receivables | $ | 33 | |||||
Intangible assets: | |||||||
Customer relationships | 13 | 71 | |||||
Trademarks | 11 | 6 | |||||
Non-compete agreements | 4 | 3 | |||||
Software | 7 | 25 | |||||
Goodwill | 249 | ||||||
Other assets | 26 | ||||||
Total Assets Acquired | 413 | ||||||
Liabilities assumed | (73 | ) | |||||
Total Purchase Price | $ | 340 | |||||
2013 and 2012 Acquisitions | |||||||
In April 2013, we acquired Florida based Zeno Office Solutions, Inc. (Zeno), a provider of print and IT solutions to small and mid-sized businesses in the Southeast, for approximately $59 in cash. This acquisition furthers our coverage in Florida, building on our strategy of expanding our network of locally-based companies focused on customers' requirements to improve their performance through efficiencies. | |||||||
In February 2013, we acquired Impika, a leader in the design, manufacture and sale of production inkjet printing solutions used for industrial, commercial, security, label and package printing for approximately $53 in cash. Impika, which is based in Aubagne, France, offers a portfolio of aqueous (water-based) inkjet presses based on proprietary technology. Through the addition of Impika's aqueous technology to our offerings, we go to market with the industry's broadest range of digital presses, strengthening our leadership in digital color production printing. | |||||||
In July 2012, we acquired Wireless Data Services, Ltd. (WDS), a provider of technical support, knowledge management and related consulting to the world's largest wireless telecommunication brands for approximately $95 (£60 million) in cash. Based in the U.K., WDS's expertise in the telecommunications industry strengthens our broad portfolio of customer care solutions. | |||||||
In February 2012, we acquired R.K. Dixon, a leading provider of IT services, copiers, printers and managed print services for approximately $58 in cash. The acquisition furthers our coverage of central Illinois and eastern Iowa, building on our strategy to create a nationwide network of locally-based companies. | |||||||
Our Document Technology segment also acquired one additional business in 2013 and three additional business in 2012 for $12 and $62, respectively, in cash. These acquisitions were largely a part of our strategy of increasing our distribution network for small and mid-size businesses. Our Services segment acquired three additional businesses in 2013 and four additional business in 2012 for $31 and $61, respectively, in cash primarily related to customer care and software to support our BPO service offerings. | |||||||
Summary - 2013 and 2012 Acquisitions | |||||||
All of our 2013 and 2012 acquisitions reflected 100% ownership of the acquired companies. The operating results of the 2013 and 2012 acquisitions described above were not material to our financial statements and were included within our results from the respective acquisition dates. WDS was included within our Services segment while the acquisitions of Zeno, Impika and R.K. Dixon were included within our Document Technology segment. The purchase prices for all acquisitions were primarily allocated to intangible assets and goodwill based on third-party valuations and management's estimates. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information. Our 2013 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $84 and $56 to our 2014 and 2013 total revenues, respectively. Our 2012 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $275, $277 and $162 to our 2014, 2013 and 2012 total revenues, respectively. | |||||||
Contingent Consideration | |||||||
In connection with certain acquisitions, we are obligated to make contingent payments if specified contractual performance targets are achieved. Contingent consideration obligations are recorded at their respective fair value. As of December 31, 2014, the maximum aggregate amount of outstanding contingent obligations to former owners of acquired entities was approximately $33, of which $25 was accrued representing the estimated fair value of this obligation. |
Divestitures
Divestitures | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||
Divestitures | Divestitures | ||||||||||||||||||||||||||||||||||||
Information Technology Outsourcing (ITO) | |||||||||||||||||||||||||||||||||||||
In December 2014, we announced an agreement to sell our ITO business to Atos for $1,050, which includes the assumption of approximately $100 of capital lease obligations and pension liabilities. The final sales price is subject to final closing adjustments with additional consideration of $50 contingent on the condition of certain assets at closing. The transaction is subject to customary closing conditions and regulatory approval and is expected to close in the first half of 2015. We expect net after-tax proceeds from the transaction of approximately $850. | |||||||||||||||||||||||||||||||||||||
ITO services include service arrangements where we manage a customer’s IT-related activities, such as application management and development, data center operations or testing and quality assurance. Our ITO business includes approximately 9,800 employees in 45 countries. As part of the transaction, Atos will provide IT services for certain of our existing BPO customers as well as a portion of our internal IT requirements. These continuing cash flows were determined to not be significant, and we will have no significant continuing involvement in the ITO business post-closing. | |||||||||||||||||||||||||||||||||||||
As a result of this pending transaction and having met applicable accounting requirements, in the fourth quarter 2014, we reported the ITO business as held for sale and a Discontinued Operation and reclassified its results from the Services segment to Discontinued Operations. All prior periods have accordingly been reclassified to conform to this presentation. | |||||||||||||||||||||||||||||||||||||
In the fourth quarter 2014, we also recorded a net pre-tax loss of $181 related to the pending sale reflecting the write-down of the carrying value of the ITO disposal group, inclusive of goodwill, to its estimated fair value less costs to sell. Goodwill was allocated to the ITO disposal group based on the relative fair value of the business. The estimated fair value may be adjusted, and we are likely to incur additional charges prior to the closing of the transaction, which will be recorded in Discontinued Operations. In addition, upon final disposal of the business, we expect to record additional tax expense of approximately $75 within Discontinued Operations primarily related to the difference between the book basis and the tax basis of allocated goodwill. All the assets and liabilities of the ITO business are reported as held for sale at December 31, 2014 and are included in Assets and Liabilities of discontinued operations, respectively, in the Consolidated Balance Sheet at December 31, 2014. | |||||||||||||||||||||||||||||||||||||
Since the ITO business comprised a portion of several reporting units, we tested the retained goodwill of those reporting units for impairment and concluded that the goodwill remaining in those reporting units was not impaired since the fair values of those reporting units exceeded their carrying values. | |||||||||||||||||||||||||||||||||||||
Other Discontinued Operations | |||||||||||||||||||||||||||||||||||||
During the third quarter 2014, we completed the closure of Xerox Audio Visual Solutions, Inc. (XAV), a small audio visual business within our Global Imaging Systems subsidiary, and recorded a net pre-tax loss on disposal of $1. XAV provided audio visual equipment and services to enterprise and government customers. As a result of this closure, we reported XAV as a Discontinued Operation and reclassified its results from the Other segment to Discontinued Operations in the third quarter 2014. | |||||||||||||||||||||||||||||||||||||
In May 2014 we sold our Truckload Management Services, Inc. (TMS) business for $15 and recorded a net pre-tax loss on disposal of $1. TMS provided document capture and submission solutions as well as campaign management, media buying and digital marketing services to the long haul trucking and transportation industry. As a result of this transaction, we reported this business as a Discontinued Operation and reclassified its results from the Services segment to Discontinued Operations in the second quarter 2014. | |||||||||||||||||||||||||||||||||||||
In 2013, in connection with our decision to exit from the Paper distribution business, we completed the sale of our North American and European Paper businesses. As a result of these transactions, we reported these paper-related operations as Discontinued Operations and reclassified the results from the Other segment to Discontinued operations in 2013. We recorded a net pre-tax loss on disposal of $25 in 2013 for the disposition of these businesses. In 2014, we recorded income of $1 in discontinued operations primarily representing adjustments to the loss on disposal recorded in 2013 due to changes in estimates. | |||||||||||||||||||||||||||||||||||||
Summarized financial information for our Discontinued Operations is as follows: | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
ITO | Other | Total | ITO | Other | Total | ITO | Other | Total | |||||||||||||||||||||||||||||
Revenues | $ | 1,320 | $ | 45 | $ | 1,365 | $ | 1,335 | $ | 497 | $ | 1,832 | $ | 1,213 | $ | 756 | $ | 1,969 | |||||||||||||||||||
Income (loss) from operations | $ | 74 | $ | (1 | ) | $ | 73 | $ | 70 | $ | 2 | $ | 72 | $ | 47 | $ | 17 | $ | 64 | ||||||||||||||||||
Loss on disposal | (181 | ) | (1 | ) | (182 | ) | — | (25 | ) | (25 | ) | — | — | — | |||||||||||||||||||||||
Net (loss) income before income taxes | $ | (107 | ) | $ | (2 | ) | $ | (109 | ) | $ | 70 | $ | (23 | ) | $ | 47 | $ | 47 | $ | 17 | $ | 64 | |||||||||||||||
Income tax expense | (5 | ) | (1 | ) | (6 | ) | (24 | ) | (3 | ) | (27 | ) | (16 | ) | (5 | ) | (21 | ) | |||||||||||||||||||
(Loss) income from discontinued operations, net of tax | $ | (112 | ) | $ | (3 | ) | $ | (115 | ) | $ | 46 | $ | (26 | ) | $ | 20 | $ | 31 | $ | 12 | $ | 43 | |||||||||||||||
The following is a summary of the the major categories of assets and liabilities of the ITO business held for sale at December 31, 2014: | |||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Accounts receivable, net | $ | 213 | |||||||||||||||||||||||||||||||||||
Other current assets | 146 | ||||||||||||||||||||||||||||||||||||
Land, buildings and equipment, net | 220 | ||||||||||||||||||||||||||||||||||||
Intangible assets, net | 197 | ||||||||||||||||||||||||||||||||||||
Goodwill | 337 | ||||||||||||||||||||||||||||||||||||
Other long-term assets | 147 | ||||||||||||||||||||||||||||||||||||
Total Assets of Discontinued Operations | $ | 1,260 | |||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 31 | |||||||||||||||||||||||||||||||||||
Accounts payable | 32 | ||||||||||||||||||||||||||||||||||||
Accrued pension and benefit costs | 9 | ||||||||||||||||||||||||||||||||||||
Unearned income | 64 | ||||||||||||||||||||||||||||||||||||
Other current liabilities | 112 | ||||||||||||||||||||||||||||||||||||
Long-term debt | 44 | ||||||||||||||||||||||||||||||||||||
Pension and other benefit liabilities | 25 | ||||||||||||||||||||||||||||||||||||
Other long-term liabilities | 54 | ||||||||||||||||||||||||||||||||||||
Total Liabilities of Discontinued Operations | $ | 371 | |||||||||||||||||||||||||||||||||||
The following is a summary of selected financial information of the ITO business for the three years ended December 31, 2014: | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Expense (Income): | |||||||||||||||||||||||||||||||||||||
Depreciation of buildings and equipment | $ | 98 | $ | 99 | $ | 98 | |||||||||||||||||||||||||||||||
Amortization of internal use software | 9 | 10 | 2 | ||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 27 | 27 | 27 | ||||||||||||||||||||||||||||||||||
Amortization of customer contract costs | 26 | 22 | 15 | ||||||||||||||||||||||||||||||||||
Operating lease rent expense | 258 | 241 | 185 | ||||||||||||||||||||||||||||||||||
Defined contribution plans | 8 | 7 | 2 | ||||||||||||||||||||||||||||||||||
Interest expense (1) | 4 | 3 | 3 | ||||||||||||||||||||||||||||||||||
Expenditures: | |||||||||||||||||||||||||||||||||||||
Cost of additions to land, buildings and equipment | $ | 105 | $ | 99 | $ | 140 | |||||||||||||||||||||||||||||||
Cost of additions to internal use software | 2 | 4 | 15 | ||||||||||||||||||||||||||||||||||
Customer-related deferred set-up/transition and inducement costs | 26 | 35 | 60 | ||||||||||||||||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||
-1 | Interest expense is related to capital lease obligations, which are expected to be assumed by purchaser of the ITO business. |
Accounts_Receivables_Net
Accounts Receivables, Net | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Accounts Receivables, Net | Accounts Receivable, Net | |||||||||||||||||||||||||||||||
Accounts receivable, net were as follows: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Amounts billed or billable | $ | 2,634 | $ | 2,651 | ||||||||||||||||||||||||||||
Unbilled amounts | 319 | 390 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (88 | ) | (112 | ) | ||||||||||||||||||||||||||||
Subtotal | 2,865 | 2,929 | ||||||||||||||||||||||||||||||
Discontinued operations (1) | (213 | ) | — | |||||||||||||||||||||||||||||
Accounts Receivable, Net | $ | 2,652 | $ | 2,929 | ||||||||||||||||||||||||||||
-1 | Represents net accounts receivable related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||||||||||||||||||||||
Unbilled amounts include amounts associated with percentage-of-completion accounting and other earned revenues not currently billable due to contractual provisions. Amounts to be invoiced in the subsequent month for current services provided are included in amounts billable, and at December 31, 2014 and 2013 were approximately $997 and $1,054, respectively. The balance at December 31, 2014 includes $52 related to our ITO business. | ||||||||||||||||||||||||||||||||
We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. | ||||||||||||||||||||||||||||||||
Accounts Receivable Sales Arrangements | ||||||||||||||||||||||||||||||||
Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. | ||||||||||||||||||||||||||||||||
All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in the caption “Other current assets” in the accompanying Consolidated Balance Sheets and were $73 and $121 at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. | ||||||||||||||||||||||||||||||||
Of the accounts receivables sold and derecognized from our balance sheet, $580 and $723 remained uncollected as of December 31, 2014 and 2013, respectively. Accounts receivable sales were as follows: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Accounts receivable sales | $ | 2,906 | $ | 3,401 | $ | 3,699 | ||||||||||||||||||||||||||
Deferred proceeds | 387 | 486 | 639 | |||||||||||||||||||||||||||||
Loss on sale of accounts receivable | 15 | 17 | 21 | |||||||||||||||||||||||||||||
Estimated decrease to operating cash flows(1) | (68 | ) | (55 | ) | (78 | ) | ||||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-1 | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. | |||||||||||||||||||||||||||||||
Finance Receivables, Net | ||||||||||||||||||||||||||||||||
Finance receivables include sales-type leases, direct financing 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: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross receivables | $ | 5,009 | $ | 5,349 | ||||||||||||||||||||||||||||
Unearned income | (624 | ) | (666 | ) | ||||||||||||||||||||||||||||
Subtotal | 4,385 | 4,683 | ||||||||||||||||||||||||||||||
Residual values | — | 1 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (131 | ) | (154 | ) | ||||||||||||||||||||||||||||
Finance Receivables, Net | 4,254 | 4,530 | ||||||||||||||||||||||||||||||
Less: Billed portion of finance receivables, net | 110 | 113 | ||||||||||||||||||||||||||||||
Less: Current portion of finance receivables not billed, net | 1,425 | 1,500 | ||||||||||||||||||||||||||||||
Finance Receivables Due After One Year, Net | $ | 2,719 | $ | 2,917 | ||||||||||||||||||||||||||||
Contractual maturities of our gross finance receivables as of December 31, 2014 were as follows (including those already billed of $117): | ||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||
$ | 1,883 | $ | 1,382 | $ | 958 | $ | 558 | $ | 205 | $ | 23 | $ | 5,009 | |||||||||||||||||||
Transfer and Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of the associated lease receivables. There were no transfers or sales of finance receivables in 2014. We continue to service the sold receivables and record servicing fee income over the expected life of the associated receivables. The following is a summary of our prior sales activity: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net carrying value (NCV) sold | $ | — | $ | 676 | $ | 682 | ||||||||||||||||||||||||||
Allowance included in NCV | — | 17 | 18 | |||||||||||||||||||||||||||||
Cash proceeds received | — | 635 | 630 | |||||||||||||||||||||||||||||
Beneficial interests received | — | 86 | 101 | |||||||||||||||||||||||||||||
Pre-tax gain on sales | — | 40 | 44 | |||||||||||||||||||||||||||||
Net fees and expenses | — | 5 | 5 | |||||||||||||||||||||||||||||
The principal value of the finance receivables derecognized from our balance sheet was $549 and $1,006 at December 31, 2014 and 2013, respectively (sales value of approximately $596 and $1,098, respectively). | ||||||||||||||||||||||||||||||||
Summary Finance Receivable Sales | ||||||||||||||||||||||||||||||||
The lease portfolios transferred and sold were all from our Document Technology segment and the gains on these sales were reported in Financing revenues within the Document Technology segment. The ultimate purchaser has no recourse to our other assets for the failure of customers to pay principal and interest when due beyond our beneficial interests which were $77 and $150 at December 31, 2014 and 2013, respectively, and are included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Beneficial interests of $64 and $124 at December 31, 2014 and 2013, respectively, are held by the bankruptcy-remote subsidiaries and therefore are not available to satisfy any of our creditor obligations. We report collections on the beneficial interests as operating cash flows in the Consolidated Statements of Cash Flows because such beneficial interests are the result of an operating activity and the associated interest rate risk is de minimis considering their weighted average lives of less than 2 years. | ||||||||||||||||||||||||||||||||
The net impact from the sales of finance receivables on operating cash flows is summarized below: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | — | $ | 631 | $ | 625 | ||||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (527 | ) | (392 | ) | (45 | ) | ||||||||||||||||||||||||||
Collections on beneficial interests | 94 | 58 | — | |||||||||||||||||||||||||||||
Estimated (Decrease) Increase to Operating Cash Flows | $ | (433 | ) | $ | 297 | $ | 580 | |||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Finance Receivables - Allowance for Credit Losses and Credit Quality | ||||||||||||||||||||||||||||||||
Our finance receivable portfolios are primarily in the U.S., Canada and Europe. 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. | ||||||||||||||||||||||||||||||||
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 loss rate is primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current 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. 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. | ||||||||||||||||||||||||||||||||
Since our allowance for doubtful finance receivables is determined by country, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of those countries/regions. Loss rates declined in the U.S. reflecting the effects of improved collections during 2014 and 2013 as well as the lower balance of finance receivables primarily due to sales in 2013 and 2012. Since Europe is comprised of various countries and regional economies, the risk profile within our European portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in Europe were $29 in 2014 as compared to $60 in the prior year, reflecting a significant improvement from the credit issues that began back in 2011. Loss rates peaked in 2011 as a result of the European economic challenges particularly for countries in the southern region. | ||||||||||||||||||||||||||||||||
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 13 | 11 | 53 | 4 | 81 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (16 | ) | (60 | ) | (2 | ) | (86 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 2 | 1 | 3 | — | 6 | |||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | (5 | ) | — | — | (17 | ) | ||||||||||||||||||||||||
Balance at December 31, 2013 | 45 | 22 | 81 | 6 | 154 | |||||||||||||||||||||||||||
Provision | — | 9 | 15 | 9 | 33 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (14 | ) | (29 | ) | (3 | ) | (51 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 1 | 3 | (9 | ) | — | (5 | ) | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 41 | $ | 20 | $ | 58 | $ | 12 | $ | 131 | ||||||||||||||||||||||
Finance Receivables Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
December 31, 2013(2) | $ | 1,666 | $ | 421 | $ | 2,292 | $ | 304 | $ | 4,683 | ||||||||||||||||||||||
December 31, 2014(2) | $ | 1,728 | $ | 424 | $ | 1,835 | $ | 398 | $ | 4,385 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-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. | |||||||||||||||||||||||||||||||
-2 | Total Finance receivables exclude residual values of $0 and $1 and the allowance for credit losses of $131 and $154 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
In the U.S. and Canada, customers are further evaluated or segregated by class based on industry sector. The primary customer classes are Finance & Other Services, Government & Education; Graphic Arts; Industrial; Healthcare and Other. In Europe, customers are further grouped by class based on the country or region of the customer. The primary customer classes include the U.K./Ireland, France and the following European regions - Central, Nordic and Southern. These groupings or classes are used to understand the nature and extent of our exposure to credit risk arising from finance receivables. | ||||||||||||||||||||||||||||||||
We evaluate our customers based on the following credit quality indicators: | ||||||||||||||||||||||||||||||||
• | Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the 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 & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%. | |||||||||||||||||||||||||||||||
• | Non-investment grade: 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 are generally in the range of 2% to 4%. | ||||||||||||||||||||||||||||||||
• | Substandard: 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 investment and non-investment grade 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 are around 10%. | |||||||||||||||||||||||||||||||
Credit quality indicators are updated at least annually, and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | ||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Sub-standard | Total | Investment | Non-investment | Sub-standard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance Receivables | Grade | Grade | Finance Receivables | |||||||||||||||||||||||||||
Finance and other services | $ | 195 | $ | 159 | $ | 55 | $ | 409 | $ | 189 | $ | 102 | $ | 34 | $ | 325 | ||||||||||||||||
Government and education | 589 | 13 | 3 | 605 | 656 | 12 | 3 | 671 | ||||||||||||||||||||||||
Graphic arts | 148 | 79 | 90 | 317 | 142 | 59 | 108 | 309 | ||||||||||||||||||||||||
Industrial | 92 | 41 | 18 | 151 | 92 | 28 | 15 | 135 | ||||||||||||||||||||||||
Healthcare | 84 | 26 | 14 | 124 | 74 | 25 | 16 | 115 | ||||||||||||||||||||||||
Other | 55 | 38 | 29 | 122 | 55 | 27 | 29 | 111 | ||||||||||||||||||||||||
Total United States | 1,163 | 356 | 209 | 1,728 | 1,208 | 253 | 205 | 1,666 | ||||||||||||||||||||||||
Finance and other services | 54 | 31 | 12 | 97 | 46 | 18 | 11 | 75 | ||||||||||||||||||||||||
Government and education | 76 | 8 | 2 | 86 | 96 | 9 | 1 | 106 | ||||||||||||||||||||||||
Graphic arts | 58 | 49 | 36 | 143 | 56 | 52 | 48 | 156 | ||||||||||||||||||||||||
Industrial | 24 | 13 | 4 | 41 | 23 | 12 | 6 | 41 | ||||||||||||||||||||||||
Other | 34 | 19 | 4 | 57 | 29 | 9 | 5 | 43 | ||||||||||||||||||||||||
Total Canada(1) | 246 | 120 | 58 | 424 | 250 | 100 | 71 | 421 | ||||||||||||||||||||||||
France | 253 | 234 | 129 | 616 | 282 | 314 | 122 | 718 | ||||||||||||||||||||||||
U.K/Ireland | 255 | 101 | 6 | 362 | 199 | 171 | 42 | 412 | ||||||||||||||||||||||||
Central(2) | 230 | 278 | 30 | 538 | 287 | 394 | 43 | 724 | ||||||||||||||||||||||||
Southern(3) | 60 | 148 | 36 | 244 | 102 | 187 | 58 | 347 | ||||||||||||||||||||||||
Nordic(4) | 25 | 49 | 1 | 75 | 46 | 42 | 3 | 91 | ||||||||||||||||||||||||
Total Europe | 823 | 810 | 202 | 1,835 | 916 | 1,108 | 268 | 2,292 | ||||||||||||||||||||||||
Other | 195 | 163 | 40 | 398 | 226 | 69 | 9 | 304 | ||||||||||||||||||||||||
Total | $ | 2,427 | $ | 1,449 | $ | 509 | $ | 4,385 | $ | 2,600 | $ | 1,530 | $ | 553 | $ | 4,683 | ||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-1 | Historically, the Company had included certain Canadian customers with graphic arts activity in their industry sector. In 2014, these customers were reclassified to Graphic Arts to better reflect their primary business activity. The December 31, 2013 amounts have been revised to reclassify $33 from Finance and Other Services and $38 from Industrial to Graphic Arts to be consistent with the 2014 presentation. | |||||||||||||||||||||||||||||||
-2 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-3 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-4 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 399 | $ | 409 | $ | 13 | ||||||||||||||||||
Government and education | 14 | 4 | 3 | 21 | 584 | 605 | 25 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | 1 | 14 | 303 | 317 | 6 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 145 | 151 | 9 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 120 | 124 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 118 | 122 | 6 | |||||||||||||||||||||||||
Total United States | 43 | 10 | 6 | 59 | 1,669 | 1,728 | 64 | |||||||||||||||||||||||||
Canada | 9 | 2 | 1 | 12 | 412 | 424 | 17 | |||||||||||||||||||||||||
France | — | 1 | 2 | 3 | 613 | 616 | 35 | |||||||||||||||||||||||||
U.K./Ireland | 1 | — | — | 1 | 361 | 362 | 1 | |||||||||||||||||||||||||
Central(1) | 2 | 2 | 1 | 5 | 533 | 538 | 15 | |||||||||||||||||||||||||
Southern(2) | 14 | 4 | 4 | 22 | 222 | 244 | 17 | |||||||||||||||||||||||||
Nordic(3) | 1 | — | — | 1 | 74 | 75 | 2 | |||||||||||||||||||||||||
Total Europe | 18 | 7 | 7 | 32 | 1,803 | 1,835 | 70 | |||||||||||||||||||||||||
Other | 13 | 1 | — | 14 | 384 | 398 | — | |||||||||||||||||||||||||
Total | $ | 83 | $ | 20 | $ | 14 | $ | 117 | $ | 4,268 | $ | 4,385 | $ | 151 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 315 | $ | 325 | $ | 12 | ||||||||||||||||||
Government and education | 17 | 4 | 3 | 24 | 647 | 671 | 34 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | — | 13 | 296 | 309 | 5 | |||||||||||||||||||||||||
Industrial | 3 | 1 | 1 | 5 | 130 | 135 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 111 | 115 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 107 | 111 | 3 | |||||||||||||||||||||||||
Total United States | 45 | 10 | 5 | 60 | 1,606 | 1,666 | 65 | |||||||||||||||||||||||||
Canada | 4 | 3 | 3 | 10 | 411 | 421 | 19 | |||||||||||||||||||||||||
France | — | — | — | — | 718 | 718 | 40 | |||||||||||||||||||||||||
U.K./Ireland | 1 | 1 | — | 2 | 410 | 412 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 3 | 8 | 716 | 724 | 23 | |||||||||||||||||||||||||
Southern(2) | 21 | 5 | 7 | 33 | 314 | 347 | 45 | |||||||||||||||||||||||||
Nordic(3) | 2 | — | — | 2 | 89 | 91 | — | |||||||||||||||||||||||||
Total Europe | 27 | 8 | 10 | 45 | 2,247 | 2,292 | 110 | |||||||||||||||||||||||||
Other | 8 | 1 | — | 9 | 295 | 304 | — | |||||||||||||||||||||||||
Total | $ | 84 | $ | 22 | $ | 18 | $ | 124 | $ | 4,559 | $ | 4,683 | $ | 194 | ||||||||||||||||||
___________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Finance_Receivables_Net
Finance Receivables, Net | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Finance Receivables, Net | Accounts Receivable, Net | |||||||||||||||||||||||||||||||
Accounts receivable, net were as follows: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Amounts billed or billable | $ | 2,634 | $ | 2,651 | ||||||||||||||||||||||||||||
Unbilled amounts | 319 | 390 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (88 | ) | (112 | ) | ||||||||||||||||||||||||||||
Subtotal | 2,865 | 2,929 | ||||||||||||||||||||||||||||||
Discontinued operations (1) | (213 | ) | — | |||||||||||||||||||||||||||||
Accounts Receivable, Net | $ | 2,652 | $ | 2,929 | ||||||||||||||||||||||||||||
-1 | Represents net accounts receivable related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||||||||||||||||||||||
Unbilled amounts include amounts associated with percentage-of-completion accounting and other earned revenues not currently billable due to contractual provisions. Amounts to be invoiced in the subsequent month for current services provided are included in amounts billable, and at December 31, 2014 and 2013 were approximately $997 and $1,054, respectively. The balance at December 31, 2014 includes $52 related to our ITO business. | ||||||||||||||||||||||||||||||||
We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. | ||||||||||||||||||||||||||||||||
Accounts Receivable Sales Arrangements | ||||||||||||||||||||||||||||||||
Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. | ||||||||||||||||||||||||||||||||
All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in the caption “Other current assets” in the accompanying Consolidated Balance Sheets and were $73 and $121 at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. | ||||||||||||||||||||||||||||||||
Of the accounts receivables sold and derecognized from our balance sheet, $580 and $723 remained uncollected as of December 31, 2014 and 2013, respectively. Accounts receivable sales were as follows: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Accounts receivable sales | $ | 2,906 | $ | 3,401 | $ | 3,699 | ||||||||||||||||||||||||||
Deferred proceeds | 387 | 486 | 639 | |||||||||||||||||||||||||||||
Loss on sale of accounts receivable | 15 | 17 | 21 | |||||||||||||||||||||||||||||
Estimated decrease to operating cash flows(1) | (68 | ) | (55 | ) | (78 | ) | ||||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-1 | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. | |||||||||||||||||||||||||||||||
Finance Receivables, Net | ||||||||||||||||||||||||||||||||
Finance receivables include sales-type leases, direct financing 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: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross receivables | $ | 5,009 | $ | 5,349 | ||||||||||||||||||||||||||||
Unearned income | (624 | ) | (666 | ) | ||||||||||||||||||||||||||||
Subtotal | 4,385 | 4,683 | ||||||||||||||||||||||||||||||
Residual values | — | 1 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (131 | ) | (154 | ) | ||||||||||||||||||||||||||||
Finance Receivables, Net | 4,254 | 4,530 | ||||||||||||||||||||||||||||||
Less: Billed portion of finance receivables, net | 110 | 113 | ||||||||||||||||||||||||||||||
Less: Current portion of finance receivables not billed, net | 1,425 | 1,500 | ||||||||||||||||||||||||||||||
Finance Receivables Due After One Year, Net | $ | 2,719 | $ | 2,917 | ||||||||||||||||||||||||||||
Contractual maturities of our gross finance receivables as of December 31, 2014 were as follows (including those already billed of $117): | ||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||
$ | 1,883 | $ | 1,382 | $ | 958 | $ | 558 | $ | 205 | $ | 23 | $ | 5,009 | |||||||||||||||||||
Transfer and Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of the associated lease receivables. There were no transfers or sales of finance receivables in 2014. We continue to service the sold receivables and record servicing fee income over the expected life of the associated receivables. The following is a summary of our prior sales activity: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net carrying value (NCV) sold | $ | — | $ | 676 | $ | 682 | ||||||||||||||||||||||||||
Allowance included in NCV | — | 17 | 18 | |||||||||||||||||||||||||||||
Cash proceeds received | — | 635 | 630 | |||||||||||||||||||||||||||||
Beneficial interests received | — | 86 | 101 | |||||||||||||||||||||||||||||
Pre-tax gain on sales | — | 40 | 44 | |||||||||||||||||||||||||||||
Net fees and expenses | — | 5 | 5 | |||||||||||||||||||||||||||||
The principal value of the finance receivables derecognized from our balance sheet was $549 and $1,006 at December 31, 2014 and 2013, respectively (sales value of approximately $596 and $1,098, respectively). | ||||||||||||||||||||||||||||||||
Summary Finance Receivable Sales | ||||||||||||||||||||||||||||||||
The lease portfolios transferred and sold were all from our Document Technology segment and the gains on these sales were reported in Financing revenues within the Document Technology segment. The ultimate purchaser has no recourse to our other assets for the failure of customers to pay principal and interest when due beyond our beneficial interests which were $77 and $150 at December 31, 2014 and 2013, respectively, and are included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Beneficial interests of $64 and $124 at December 31, 2014 and 2013, respectively, are held by the bankruptcy-remote subsidiaries and therefore are not available to satisfy any of our creditor obligations. We report collections on the beneficial interests as operating cash flows in the Consolidated Statements of Cash Flows because such beneficial interests are the result of an operating activity and the associated interest rate risk is de minimis considering their weighted average lives of less than 2 years. | ||||||||||||||||||||||||||||||||
The net impact from the sales of finance receivables on operating cash flows is summarized below: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | — | $ | 631 | $ | 625 | ||||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (527 | ) | (392 | ) | (45 | ) | ||||||||||||||||||||||||||
Collections on beneficial interests | 94 | 58 | — | |||||||||||||||||||||||||||||
Estimated (Decrease) Increase to Operating Cash Flows | $ | (433 | ) | $ | 297 | $ | 580 | |||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Finance Receivables - Allowance for Credit Losses and Credit Quality | ||||||||||||||||||||||||||||||||
Our finance receivable portfolios are primarily in the U.S., Canada and Europe. 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. | ||||||||||||||||||||||||||||||||
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 loss rate is primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current 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. 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. | ||||||||||||||||||||||||||||||||
Since our allowance for doubtful finance receivables is determined by country, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of those countries/regions. Loss rates declined in the U.S. reflecting the effects of improved collections during 2014 and 2013 as well as the lower balance of finance receivables primarily due to sales in 2013 and 2012. Since Europe is comprised of various countries and regional economies, the risk profile within our European portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in Europe were $29 in 2014 as compared to $60 in the prior year, reflecting a significant improvement from the credit issues that began back in 2011. Loss rates peaked in 2011 as a result of the European economic challenges particularly for countries in the southern region. | ||||||||||||||||||||||||||||||||
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 13 | 11 | 53 | 4 | 81 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (16 | ) | (60 | ) | (2 | ) | (86 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 2 | 1 | 3 | — | 6 | |||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | (5 | ) | — | — | (17 | ) | ||||||||||||||||||||||||
Balance at December 31, 2013 | 45 | 22 | 81 | 6 | 154 | |||||||||||||||||||||||||||
Provision | — | 9 | 15 | 9 | 33 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (14 | ) | (29 | ) | (3 | ) | (51 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 1 | 3 | (9 | ) | — | (5 | ) | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 41 | $ | 20 | $ | 58 | $ | 12 | $ | 131 | ||||||||||||||||||||||
Finance Receivables Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
December 31, 2013(2) | $ | 1,666 | $ | 421 | $ | 2,292 | $ | 304 | $ | 4,683 | ||||||||||||||||||||||
December 31, 2014(2) | $ | 1,728 | $ | 424 | $ | 1,835 | $ | 398 | $ | 4,385 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-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. | |||||||||||||||||||||||||||||||
-2 | Total Finance receivables exclude residual values of $0 and $1 and the allowance for credit losses of $131 and $154 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
In the U.S. and Canada, customers are further evaluated or segregated by class based on industry sector. The primary customer classes are Finance & Other Services, Government & Education; Graphic Arts; Industrial; Healthcare and Other. In Europe, customers are further grouped by class based on the country or region of the customer. The primary customer classes include the U.K./Ireland, France and the following European regions - Central, Nordic and Southern. These groupings or classes are used to understand the nature and extent of our exposure to credit risk arising from finance receivables. | ||||||||||||||||||||||||||||||||
We evaluate our customers based on the following credit quality indicators: | ||||||||||||||||||||||||||||||||
• | Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the 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 & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%. | |||||||||||||||||||||||||||||||
• | Non-investment grade: 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 are generally in the range of 2% to 4%. | ||||||||||||||||||||||||||||||||
• | Substandard: 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 investment and non-investment grade 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 are around 10%. | |||||||||||||||||||||||||||||||
Credit quality indicators are updated at least annually, and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | ||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Sub-standard | Total | Investment | Non-investment | Sub-standard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance Receivables | Grade | Grade | Finance Receivables | |||||||||||||||||||||||||||
Finance and other services | $ | 195 | $ | 159 | $ | 55 | $ | 409 | $ | 189 | $ | 102 | $ | 34 | $ | 325 | ||||||||||||||||
Government and education | 589 | 13 | 3 | 605 | 656 | 12 | 3 | 671 | ||||||||||||||||||||||||
Graphic arts | 148 | 79 | 90 | 317 | 142 | 59 | 108 | 309 | ||||||||||||||||||||||||
Industrial | 92 | 41 | 18 | 151 | 92 | 28 | 15 | 135 | ||||||||||||||||||||||||
Healthcare | 84 | 26 | 14 | 124 | 74 | 25 | 16 | 115 | ||||||||||||||||||||||||
Other | 55 | 38 | 29 | 122 | 55 | 27 | 29 | 111 | ||||||||||||||||||||||||
Total United States | 1,163 | 356 | 209 | 1,728 | 1,208 | 253 | 205 | 1,666 | ||||||||||||||||||||||||
Finance and other services | 54 | 31 | 12 | 97 | 46 | 18 | 11 | 75 | ||||||||||||||||||||||||
Government and education | 76 | 8 | 2 | 86 | 96 | 9 | 1 | 106 | ||||||||||||||||||||||||
Graphic arts | 58 | 49 | 36 | 143 | 56 | 52 | 48 | 156 | ||||||||||||||||||||||||
Industrial | 24 | 13 | 4 | 41 | 23 | 12 | 6 | 41 | ||||||||||||||||||||||||
Other | 34 | 19 | 4 | 57 | 29 | 9 | 5 | 43 | ||||||||||||||||||||||||
Total Canada(1) | 246 | 120 | 58 | 424 | 250 | 100 | 71 | 421 | ||||||||||||||||||||||||
France | 253 | 234 | 129 | 616 | 282 | 314 | 122 | 718 | ||||||||||||||||||||||||
U.K/Ireland | 255 | 101 | 6 | 362 | 199 | 171 | 42 | 412 | ||||||||||||||||||||||||
Central(2) | 230 | 278 | 30 | 538 | 287 | 394 | 43 | 724 | ||||||||||||||||||||||||
Southern(3) | 60 | 148 | 36 | 244 | 102 | 187 | 58 | 347 | ||||||||||||||||||||||||
Nordic(4) | 25 | 49 | 1 | 75 | 46 | 42 | 3 | 91 | ||||||||||||||||||||||||
Total Europe | 823 | 810 | 202 | 1,835 | 916 | 1,108 | 268 | 2,292 | ||||||||||||||||||||||||
Other | 195 | 163 | 40 | 398 | 226 | 69 | 9 | 304 | ||||||||||||||||||||||||
Total | $ | 2,427 | $ | 1,449 | $ | 509 | $ | 4,385 | $ | 2,600 | $ | 1,530 | $ | 553 | $ | 4,683 | ||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-1 | Historically, the Company had included certain Canadian customers with graphic arts activity in their industry sector. In 2014, these customers were reclassified to Graphic Arts to better reflect their primary business activity. The December 31, 2013 amounts have been revised to reclassify $33 from Finance and Other Services and $38 from Industrial to Graphic Arts to be consistent with the 2014 presentation. | |||||||||||||||||||||||||||||||
-2 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-3 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-4 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 399 | $ | 409 | $ | 13 | ||||||||||||||||||
Government and education | 14 | 4 | 3 | 21 | 584 | 605 | 25 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | 1 | 14 | 303 | 317 | 6 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 145 | 151 | 9 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 120 | 124 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 118 | 122 | 6 | |||||||||||||||||||||||||
Total United States | 43 | 10 | 6 | 59 | 1,669 | 1,728 | 64 | |||||||||||||||||||||||||
Canada | 9 | 2 | 1 | 12 | 412 | 424 | 17 | |||||||||||||||||||||||||
France | — | 1 | 2 | 3 | 613 | 616 | 35 | |||||||||||||||||||||||||
U.K./Ireland | 1 | — | — | 1 | 361 | 362 | 1 | |||||||||||||||||||||||||
Central(1) | 2 | 2 | 1 | 5 | 533 | 538 | 15 | |||||||||||||||||||||||||
Southern(2) | 14 | 4 | 4 | 22 | 222 | 244 | 17 | |||||||||||||||||||||||||
Nordic(3) | 1 | — | — | 1 | 74 | 75 | 2 | |||||||||||||||||||||||||
Total Europe | 18 | 7 | 7 | 32 | 1,803 | 1,835 | 70 | |||||||||||||||||||||||||
Other | 13 | 1 | — | 14 | 384 | 398 | — | |||||||||||||||||||||||||
Total | $ | 83 | $ | 20 | $ | 14 | $ | 117 | $ | 4,268 | $ | 4,385 | $ | 151 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 315 | $ | 325 | $ | 12 | ||||||||||||||||||
Government and education | 17 | 4 | 3 | 24 | 647 | 671 | 34 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | — | 13 | 296 | 309 | 5 | |||||||||||||||||||||||||
Industrial | 3 | 1 | 1 | 5 | 130 | 135 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 111 | 115 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 107 | 111 | 3 | |||||||||||||||||||||||||
Total United States | 45 | 10 | 5 | 60 | 1,606 | 1,666 | 65 | |||||||||||||||||||||||||
Canada | 4 | 3 | 3 | 10 | 411 | 421 | 19 | |||||||||||||||||||||||||
France | — | — | — | — | 718 | 718 | 40 | |||||||||||||||||||||||||
U.K./Ireland | 1 | 1 | — | 2 | 410 | 412 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 3 | 8 | 716 | 724 | 23 | |||||||||||||||||||||||||
Southern(2) | 21 | 5 | 7 | 33 | 314 | 347 | 45 | |||||||||||||||||||||||||
Nordic(3) | 2 | — | — | 2 | 89 | 91 | — | |||||||||||||||||||||||||
Total Europe | 27 | 8 | 10 | 45 | 2,247 | 2,292 | 110 | |||||||||||||||||||||||||
Other | 8 | 1 | — | 9 | 295 | 304 | — | |||||||||||||||||||||||||
Total | $ | 84 | $ | 22 | $ | 18 | $ | 124 | $ | 4,559 | $ | 4,683 | $ | 194 | ||||||||||||||||||
___________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Inventories_and_Equipment_on_O
Inventories and Equipment on Operating Leases, Net | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Inventories and Equipment on Operating Leases, Net [Abstract] | |||||||||||||||||||||||
Inventories and Equipment on Operating Leases, Net | Inventories and Equipment on Operating Leases, Net | ||||||||||||||||||||||
The following is a summary of Inventories by major category: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Finished goods | $ | 778 | $ | 837 | |||||||||||||||||||
Work-in-process | 58 | 60 | |||||||||||||||||||||
Raw materials | 98 | 101 | |||||||||||||||||||||
Total Inventories | $ | 934 | $ | 998 | |||||||||||||||||||
The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our 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: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Equipment on operating leases | $ | 1,531 | $ | 1,575 | |||||||||||||||||||
Accumulated depreciation | (1,006 | ) | (1,016 | ) | |||||||||||||||||||
Equipment on Operating Leases, Net | $ | 525 | $ | 559 | |||||||||||||||||||
Depreciable lives generally vary from three to four years consistent with our planned and historical usage of the equipment subject to operating leases. Our equipment operating lease terms vary, generally from one to three years. Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 339 | $ | 246 | $ | 155 | $ | 82 | $ | 34 | $ | 5 | ||||||||||||
Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2014, 2013 and 2012 amounted to $149, $151 and $158, respectively. |
Land_Buildings_Equipment_and_S
Land, Buildings, Equipment and Software, Net | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Land, Buildings, Equipment and Software, Net [Abstract] | |||||||||||||||||||||||||
Land, Buildings, Equipment and Software, Net | Land, Buildings, Equipment and Software, Net | ||||||||||||||||||||||||
Land, buildings and equipment, net were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Estimated Useful Lives (Years) | 2014 | 2013 | |||||||||||||||||||||||
Land | $ | 46 | $ | 50 | |||||||||||||||||||||
Building and building equipment | 25 to 50 | 1,038 | 1,086 | ||||||||||||||||||||||
Leasehold improvements | Varies | 486 | 483 | ||||||||||||||||||||||
Plant machinery | 5 to 12 | 1,375 | 1,493 | ||||||||||||||||||||||
Office furniture and equipment | 3 to 15 | 1,938 | 1,826 | ||||||||||||||||||||||
Other | 4 to 20 | 78 | 83 | ||||||||||||||||||||||
Construction in progress | 80 | 66 | |||||||||||||||||||||||
Subtotal | 5,041 | 5,087 | |||||||||||||||||||||||
Accumulated depreciation | (3,698 | ) | (3,621 | ) | |||||||||||||||||||||
Subtotal | 1,343 | 1,466 | |||||||||||||||||||||||
Discontinued operations (1) | (220 | ) | — | ||||||||||||||||||||||
Land, Buildings and Equipment, Net | $ | 1,123 | $ | 1,466 | |||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Represents net fixed assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Depreciation expense and operating lease rent expense were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Depreciation expense (1) | $ | 324 | $ | 332 | $ | 354 | |||||||||||||||||||
Operating lease rent expense(1) | 560 | 513 | 461 | ||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
We lease buildings and equipment, substantially all of which are accounted for as operating leases. Capital leased assets were approximately $180 and $150 at December 31, 2014 and 2013, respectively. Capital lease assets at December 31, 2014 includes approximately $75 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||||||||||||||||
Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2014 were as follows: | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||
Continuing operations | $ | 469 | $ | 347 | $ | 170 | $ | 104 | $ | 79 | $ | 57 | |||||||||||||
Discontinued operations (1) | 117 | 43 | 18 | 8 | 6 | — | |||||||||||||||||||
Minimum operating lease commitments | $ | 586 | $ | 390 | $ | 188 | $ | 112 | $ | 85 | $ | 57 | |||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Reflects lease commitments related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Internal Use and Product Software | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
Additions to: | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Internal use software (1) | $ | 82 | $ | 77 | $ | 110 | |||||||||||||||||||
Product software | 23 | 28 | 107 | ||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Capitalized costs, net: | 2014 | 2013 | |||||||||||||||||||||||
Internal use software (1) | $ | 454 | $ | 506 | |||||||||||||||||||||
Product software | 307 | 343 | |||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Internal use software at December 31, 2014 includes $20 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Useful lives of our internal use and product software generally vary from three to ten years. | |||||||||||||||||||||||||
Included within product software at December 31, 2014 is approximately $250 of capitalized costs associated with significant software system platforms developed for use in certain of our government services businesses. We regularly review these software system platforms for impairment. Our impairment reviews for 2014 and 2013 indicated that the costs would be recoverable from estimated future operating profits; however, those future operating profits are heavily dependent on our ability to successfully complete existing contracts as well as obtain future contracts. |
Investment_in_Affiliates_at_Eq
Investment in Affiliates, at Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Investment in Affiliates, at Equity | Investment in Affiliates, at Equity | ||||||||||||
Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Fuji Xerox | $ | 1,275 | $ | 1,224 | |||||||||
Other | 63 | 61 | |||||||||||
Investments in Affiliates, at Equity | $ | 1,338 | $ | 1,285 | |||||||||
Our equity in net income of our unconsolidated affiliates was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fuji Xerox | $ | 147 | $ | 156 | $ | 139 | |||||||
Other | 13 | 13 | 13 | ||||||||||
Total Equity in Net Income of Unconsolidated Affiliates | $ | 160 | $ | 169 | $ | 152 | |||||||
Fuji Xerox | |||||||||||||
Fuji Xerox is headquartered in Tokyo and operates in Japan, China, Australia, New Zealand, Vietnam and other areas of the Pacific Rim. Our investment in Fuji Xerox of $1,275 at December 31, 2014, differs from our implied 25% interest in the underlying net assets, or $1,367, due primarily to our deferral of gains resulting from sales of assets by us to Fuji Xerox. | |||||||||||||
Equity in net income of Fuji Xerox is affected by certain adjustments to reflect the deferral of profit associated with intercompany sales. These adjustments may result in recorded equity income that is different from that implied by our 25% ownership interest. | |||||||||||||
Summarized financial information for Fuji Xerox is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Summary of Operations | |||||||||||||
Revenues | $ | 11,112 | $ | 11,415 | $ | 12,633 | |||||||
Costs and expenses | 10,242 | 10,479 | 11,783 | ||||||||||
Income before income taxes | 870 | 936 | 850 | ||||||||||
Income tax expense | 262 | 276 | 279 | ||||||||||
Net Income | 608 | 660 | 571 | ||||||||||
Less: Net income - noncontrolling interests | 4 | 5 | 6 | ||||||||||
Net Income - Fuji Xerox | $ | 604 | $ | 655 | $ | 565 | |||||||
Balance Sheet | |||||||||||||
Assets: | |||||||||||||
Current assets | $ | 4,801 | $ | 4,955 | $ | 5,154 | |||||||
Long-term assets | 4,742 | 5,160 | 6,158 | ||||||||||
Total Assets | $ | 9,543 | $ | 10,115 | $ | 11,312 | |||||||
Liabilities and Equity: | |||||||||||||
Current liabilities | $ | 2,982 | $ | 3,114 | $ | 3,465 | |||||||
Long-term debt | 580 | 978 | 1,185 | ||||||||||
Other long-term liabilities | 482 | 680 | 917 | ||||||||||
Noncontrolling interests | 30 | 28 | 27 | ||||||||||
Fuji Xerox shareholders' equity | 5,469 | 5,315 | 5,718 | ||||||||||
Total Liabilities and Equity | $ | 9,543 | $ | 10,115 | $ | 11,312 | |||||||
Yen/U.S. Dollar exchange rates used to translate are as follows: | |||||||||||||
Financial Statement | Exchange Basis | 2014 | 2013 | 2012 | |||||||||
Summary of Operations | Weighted average rate | 105.58 | 97.52 | 79.89 | |||||||||
Balance Sheet | Year-end rate | 119.46 | 105.15 | 86.01 | |||||||||
Transactions with Fuji Xerox | |||||||||||||
We receive dividends from Fuji Xerox, which are reflected as a reduction in our investment. Additionally, we have a Technology Agreement with Fuji Xerox whereby we receive royalty payments for their use of our Xerox brand trademark, as well as rights to access our patent portfolio in exchange for access to their patent portfolio. These payments are included in Outsourcing, maintenance and rental revenues in the Consolidated Statements of Income. We also have arrangements with Fuji Xerox whereby we purchase inventory from and sell inventory to Fuji Xerox. Pricing of the transactions under these arrangements is based upon terms the Company believes to be negotiated at arm's length. Our purchase commitments with Fuji Xerox are in the normal course of business and typically have a lead time of three months. In addition, we pay Fuji Xerox and they pay us for unique research and development costs. | |||||||||||||
Transactions with Fuji Xerox were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends received from Fuji Xerox | $ | 58 | $ | 60 | $ | 52 | |||||||
Royalty revenue earned | 115 | 118 | 132 | ||||||||||
Inventory purchases from Fuji Xerox | 1,831 | 1,903 | 2,069 | ||||||||||
Inventory sales to Fuji Xerox | 120 | 145 | 147 | ||||||||||
R&D payments received from Fuji Xerox | 1 | 2 | 2 | ||||||||||
R&D payments paid to Fuji Xerox | 17 | 21 | 15 | ||||||||||
As of December 31, 2014 and 2013, net amounts due to Fuji Xerox were $339 and $402 (corrected from $85 | |||||||||||||
originally disclosed in the December 31, 2013 Form 10-K), respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net | ||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
The following table presents the changes in the carrying amount of goodwill, by reportable segment: | |||||||||||||||||||||||||||
Services | Document Technology | Total | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 6,619 | $ | 2,184 | $ | 8,803 | |||||||||||||||||||||
Foreign currency translation | 41 | 34 | 75 | ||||||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
WDS | 69 | — | 69 | ||||||||||||||||||||||||
R.K. Dixon | — | 30 | 30 | ||||||||||||||||||||||||
Other | 51 | 34 | 85 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 6,780 | $ | 2,282 | $ | 9,062 | |||||||||||||||||||||
Foreign currency translation | 6 | 16 | 22 | ||||||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
Zeno | — | 44 | 44 | ||||||||||||||||||||||||
Impika | — | 43 | 43 | ||||||||||||||||||||||||
Other | 29 | 5 | 34 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 6,815 | $ | 2,390 | $ | 9,205 | |||||||||||||||||||||
Foreign currency translation | (98 | ) | (56 | ) | (154 | ) | |||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
Invoco | 39 | — | 39 | ||||||||||||||||||||||||
ISG | 166 | — | 166 | ||||||||||||||||||||||||
Consilience | 23 | — | 23 | ||||||||||||||||||||||||
Other | 2 | 19 | 21 | ||||||||||||||||||||||||
Divestitures (1) | (495 | ) | — | (495 | ) | ||||||||||||||||||||||
Balance at December 31, 2014 | $ | 6,452 | $ | 2,353 | $ | 8,805 | |||||||||||||||||||||
___________ | |||||||||||||||||||||||||||
-1 | Primarily represents goodwill related to our ITO business ($487) which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||
Intangible Assets, Net | |||||||||||||||||||||||||||
Net intangible assets were $2,031 at December 31, 2014 of which $1,677 relate to our Services segment and $354 relate to our Document Technology segment. Intangible assets were comprised of the following: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Weighted Average | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Amortization | Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Customer relationships | 12 years | $ | 3,636 | $ | 1,670 | $ | 1,966 | $ | 3,580 | $ | 1,359 | $ | 2,221 | ||||||||||||||
Distribution network | 25 years | 123 | 74 | 49 | 123 | 69 | 54 | ||||||||||||||||||||
Trademarks | 20 years | 274 | 87 | 187 | 269 | 72 | 197 | ||||||||||||||||||||
Technology, patents and non-compete | 9 years | 40 | 14 | 26 | 41 | 10 | 31 | ||||||||||||||||||||
Subtotal | 4,073 | 1,845 | 2,228 | 4,013 | 1,510 | 2,503 | |||||||||||||||||||||
Discontinued Operations(1) | (335 | ) | (138 | ) | (197 | ) | — | — | — | ||||||||||||||||||
Total Intangible Assets | $ | 3,738 | $ | 1,707 | $ | 2,031 | $ | 4,013 | $ | 1,510 | $ | 2,503 | |||||||||||||||
_______________ | |||||||||||||||||||||||||||
-1 | Represents net intangible assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||
Amortization expense related to intangible assets was $315, $305, and $301 for the years ended December 31, 2014, 2013 and 2012, respectively1. Excluding the impact of additional acquisitions, amortization expense is expected to approximate $305 in 2015 and 2016, and $300 in years 2017, 2018 and 20191 |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment Charges | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges | ||||||||||||||||
We continue to engage in a series of restructuring programs related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and impact all major geographies and segments. Management continues to evaluate our business, therefore, in future years, there may be additional provisions for new plan initiatives as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for those assets sold, abandoned or made obsolete as a result of these programs. | |||||||||||||||||
Costs associated with restructuring, including employee severance and lease termination costs are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we recognize employee severance costs when they are both probable and reasonably estimable. | |||||||||||||||||
A summary of our restructuring program activity during the three years ended December 31, 2014 is as follows: | |||||||||||||||||
Severance and | Lease Cancellation | Asset Impairments(1) | Total | ||||||||||||||
Related Costs | and Other Costs | ||||||||||||||||
Balance at December 31, 2011 | $ | 116 | $ | 7 | $ | — | $ | 123 | |||||||||
Restructuring provision | 156 | 5 | 2 | 163 | |||||||||||||
Reversals of prior accruals | (13 | ) | — | (1 | ) | (14 | ) | ||||||||||
Net current period charges - continuing operations(2) | 143 | 5 | 1 | 149 | |||||||||||||
Discontinued operations(3) | 4 | — | — | 4 | |||||||||||||
Total Net Current Period Charges | 147 | 5 | 1 | 153 | |||||||||||||
Charges against reserve and currency | (140 | ) | (5 | ) | (1 | ) | (146 | ) | |||||||||
Balance at December 31, 2012 | 123 | 7 | — | 130 | |||||||||||||
Restructuring provision | 141 | 2 | 1 | 144 | |||||||||||||
Reversals of prior accruals | (29 | ) | — | — | (29 | ) | |||||||||||
Net current period charges - continuing operations(2) | 112 | 2 | 1 | 115 | |||||||||||||
Discontinued operations(3) | 7 | — | — | 7 | |||||||||||||
Total Net Current Period Charges | 119 | 2 | 1 | 122 | |||||||||||||
Charges against reserve and currency | (133 | ) | (2 | ) | (1 | ) | (136 | ) | |||||||||
Balance at December 31, 2013 | 109 | 7 | — | 116 | |||||||||||||
Restructuring provision | 143 | 5 | 7 | 155 | |||||||||||||
Reversals of prior accruals | (25 | ) | (2 | ) | — | (27 | ) | ||||||||||
Net current period charges - continuing operations(2) | 118 | 3 | 7 | 128 | |||||||||||||
Discontinued operations(3) | 2 | — | — | 2 | |||||||||||||
Total Net Current Period Charges | 120 | 3 | 7 | 130 | |||||||||||||
Charges against reserve and currency | (136 | ) | (6 | ) | (7 | ) | (149 | ) | |||||||||
Balance at December 31, 2014 | $ | 93 | $ | 4 | $ | — | $ | 97 | |||||||||
________________ | |||||||||||||||||
-1 | Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. | ||||||||||||||||
-2 | Represents amount recognized within the Consolidated Statements of Income for the years shown. | ||||||||||||||||
-3 | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||||||||||||||||
The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Charges against reserve | $ | (149 | ) | $ | (136 | ) | $ | (146 | ) | ||||||||
Asset impairment | 7 | 1 | 1 | ||||||||||||||
Effects of foreign currency and other non-cash items | 9 | (1 | ) | 1 | |||||||||||||
Restructuring Cash Payments | $ | (133 | ) | $ | (136 | ) | $ | (144 | ) | ||||||||
The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Services | $ | 38 | $ | 38 | $ | 66 | |||||||||||
Document Technology | 76 | 77 | 83 | ||||||||||||||
Other | 14 | — | — | ||||||||||||||
Total Net Restructuring Charges | $ | 128 | $ | 115 | $ | 149 | |||||||||||
Supplementary_Financial_Inform
Supplementary Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Supplemental Financial Information [Abstract] | |||||||||
Supplementary Financial Information | Supplementary Financial Information | ||||||||
The components of other current and long-term assets and liabilities were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Other Current Assets | |||||||||
Deferred taxes and income taxes receivable | $ | 426 | $ | 253 | |||||
Royalties, license fees and software maintenance | 190 | 185 | |||||||
Restricted cash | 113 | 147 | |||||||
Prepaid expenses | 134 | 143 | |||||||
Derivative instruments | 22 | 6 | |||||||
Deferred purchase price from sales of accounts receivables | 73 | 121 | |||||||
Beneficial interests - sales of finance receivables | 35 | 64 | |||||||
Advances and deposits | 29 | 32 | |||||||
Other | 206 | 256 | |||||||
Discontinued operations (1) | (146 | ) | — | ||||||
Total Other Current Assets | $ | 1,082 | $ | 1,207 | |||||
Other Current Liabilities | |||||||||
Deferred taxes and income taxes payable | $ | 120 | $ | 87 | |||||
Other taxes payable | 134 | 180 | |||||||
Interest payable | 78 | 80 | |||||||
Restructuring reserves | 94 | 108 | |||||||
Derivative instruments | 58 | 70 | |||||||
Product warranties | 11 | 13 | |||||||
Dividends payable | 88 | 84 | |||||||
Distributor and reseller rebates/commissions | 120 | 125 | |||||||
Servicer liabilities | 107 | 140 | |||||||
Other | 811 | 826 | |||||||
Discontinued operations (1) | (112 | ) | — | ||||||
Total Other Current Liabilities | $ | 1,509 | $ | 1,713 | |||||
Other Long-term Assets | |||||||||
Deferred taxes and income taxes receivable | $ | 367 | $ | 377 | |||||
Prepaid pension costs | 17 | 55 | |||||||
Net investment in TRG | 158 | 173 | |||||||
Internal use software, net | 454 | 506 | |||||||
Product software, net | 307 | 343 | |||||||
Restricted cash | 139 | 170 | |||||||
Debt issuance costs, net | 31 | 31 | |||||||
Customer contract costs, net | 323 | 399 | |||||||
Beneficial interest - sales of finance receivables | 42 | 86 | |||||||
Deferred compensation plan investments | 125 | 116 | |||||||
Other | 427 | 334 | |||||||
Discontinued operations (1) | (147 | ) | — | ||||||
Total Other Long-term Assets | $ | 2,243 | $ | 2,590 | |||||
Other Long-term Liabilities | |||||||||
Deferred taxes and income taxes payable | $ | 142 | $ | 286 | |||||
Environmental reserves | 9 | 12 | |||||||
Unearned income | 166 | 168 | |||||||
Restructuring reserves | 3 | 8 | |||||||
Other | 232 | 283 | |||||||
Discontinued operations (1) | (54 | ) | — | ||||||
Total Other Long-term Liabilities | $ | 498 | $ | 757 | |||||
-1 | Represents assets and liabilities related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||
Restricted Cash and Investments | |||||||||
As more fully discussed in Note 18 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. In addition, as more fully discussed in Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net, we continue to service the receivables sold under most of our receivable sale agreements. As servicer, we may collect cash related to sold receivables prior to year-end that will be remitted to the purchaser the following year. Since we are acting on behalf of the purchaser in our capacity as servicer, such cash collected is reported as restricted cash. Restricted cash amounts are classified in our Consolidated Balance Sheets based on when the cash will be contractually or judicially released. | |||||||||
Restricted cash amounts were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Tax and labor litigation deposits in Brazil | $ | 135 | $ | 167 | |||||
Escrow and cash collections related to receivable sales | 107 | 140 | |||||||
Other restricted cash | 10 | 10 | |||||||
Total Restricted Cash and Investments | $ | 252 | $ | 317 | |||||
Net Investment in TRG | |||||||||
At December 31, 2014, our net investment in discontinued operations primarily consisted of a $174 performance-based instrument relating to the 1997 sale of The Resolution Group (TRG) net of remaining net liabilities associated with our discontinued operations of $16. The recovery of the performance-based instrument is dependent on the sufficiency of TRG's available cash flows, as guaranteed by TRG's ultimate parent, which are expected to be recovered in annual cash distributions through 2017. The performance-based instrument is pledged as security for our future funding obligations to our U.K. Pension Plan for salaried employees. |
Debt
Debt | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||
Debt | Debt | ||||||||||||||||||||||||||||
Short-term borrowings were as follows: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Commercial paper | $ | 150 | $ | — | |||||||||||||||||||||||||
Notes Payable | 1 | 5 | |||||||||||||||||||||||||||
Current maturities of long-term debt | 1,307 | 1,112 | |||||||||||||||||||||||||||
Discontinued operations - capital leases (1) | (31 | ) | — | ||||||||||||||||||||||||||
Total Short-term Debt | $ | 1,427 | $ | 1,117 | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||
-1 | Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
We classify our debt based on the contractual maturity dates of the underlying debt instruments or as of the earliest put date available to the debt holders. We defer costs associated with debt issuance over the applicable term, or to the first put date in the case of convertible debt or debt with a put feature. These costs are amortized as interest expense in our Consolidated Statements of Income. | |||||||||||||||||||||||||||||
Long-term debt was as follows: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
Weighted Average Interest Rates at December 31, 2014(2) | 2014 | 2013 | |||||||||||||||||||||||||||
Xerox Corporation | |||||||||||||||||||||||||||||
Convertible Notes due 2014 | — | % | $ | — | $ | 9 | |||||||||||||||||||||||
Senior Notes due 2014 | — | % | — | 750 | |||||||||||||||||||||||||
Floating Rate Notes due 2014 | — | % | — | 300 | |||||||||||||||||||||||||
Senior Notes due 2015 | 4.29 | % | 1,000 | 1,000 | |||||||||||||||||||||||||
Notes due 2016 | 7.2 | % | 250 | 250 | |||||||||||||||||||||||||
Senior Notes due 2016 | 6.48 | % | 700 | 700 | |||||||||||||||||||||||||
Senior Notes due 2017 | 6.83 | % | 500 | 500 | |||||||||||||||||||||||||
Senior Notes due 2017 | 2.98 | % | 500 | 500 | |||||||||||||||||||||||||
Notes due 2018 | 0.57 | % | 1 | 1 | |||||||||||||||||||||||||
Senior Notes due 2018 | 6.37 | % | 1,000 | 1,000 | |||||||||||||||||||||||||
Senior Notes due 2019 | 2.77 | % | 500 | 500 | |||||||||||||||||||||||||
Senior Notes due 2019 | 5.66 | % | 650 | 650 | |||||||||||||||||||||||||
Senior Notes due 2020 | 2.81 | % | 400 | — | |||||||||||||||||||||||||
Senior Notes due 2021 | 5.39 | % | 1,062 | 1,062 | |||||||||||||||||||||||||
Senior Notes due 2024 | 3.84 | % | 300 | — | |||||||||||||||||||||||||
Senior Notes due 2039 | 6.78 | % | 350 | 350 | |||||||||||||||||||||||||
Subtotal - Xerox Corporation | $ | 7,213 | $ | 7,572 | |||||||||||||||||||||||||
Subsidiary Companies | |||||||||||||||||||||||||||||
Senior Notes due 2015 | 4.25 | % | 250 | 250 | |||||||||||||||||||||||||
Borrowings secured by other assets | 3.85 | % | 180 | 146 | |||||||||||||||||||||||||
Other | 1.2 | % | 3 | 6 | |||||||||||||||||||||||||
Subtotal - Subsidiary Companies | $ | 433 | $ | 402 | |||||||||||||||||||||||||
Principal debt balance | 7,646 | 7,974 | |||||||||||||||||||||||||||
Unamortized discount | (54 | ) | (58 | ) | |||||||||||||||||||||||||
Fair value adjustments(1) | |||||||||||||||||||||||||||||
Terminated swaps | 68 | 100 | |||||||||||||||||||||||||||
Current swaps | 5 | — | |||||||||||||||||||||||||||
Less: current maturities | (1,307 | ) | (1,112 | ) | |||||||||||||||||||||||||
Discontinued Operations (3) | (44 | ) | — | ||||||||||||||||||||||||||
Total Long-term Debt | $ | 6,314 | $ | 6,904 | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||
-1 | Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. | ||||||||||||||||||||||||||||
-2 | Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. | ||||||||||||||||||||||||||||
-3 | Represents long-term capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows: | |||||||||||||||||||||||||||||
2015(1) | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Continuing operations | $ | 1,276 | $ | 974 | $ | 1,023 | $ | 1,017 | $ | 1,158 | $ | 2,123 | $ | 7,571 | |||||||||||||||
Discontinued operations (2) | 31 | 24 | 14 | 6 | — | — | 75 | ||||||||||||||||||||||
Total Long-term Principal Payments | $ | 1,307 | $ | 998 | $ | 1,037 | $ | 1,023 | $ | 1,158 | $ | 2,123 | $ | 7,646 | |||||||||||||||
_____________ | |||||||||||||||||||||||||||||
-1 | Quarterly long-term debt maturities from continuing operations for 2015 are $1,007, $256, $7 and $6 for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||||||||||||
-2 | Represents payments on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Commercial Paper | |||||||||||||||||||||||||||||
We have a private placement commercial paper (CP) program in the U.S. under which we may issue CP up to a maximum amount of $2.0 billion outstanding at any time. Aggregate CP and Credit Facility borrowings may not exceed $2.0 billion outstanding at any time. The maturities of the CP Notes will vary, but may not exceed 390 days from the date of issue. The CP Notes are sold at a discount from par or, alternatively, sold at par and bear interest at market rates. CP outstanding at December 31, 2014 and 2013, was $150 and $0, respectively. | |||||||||||||||||||||||||||||
Credit Facility | |||||||||||||||||||||||||||||
In 2014, we entered into an Amended and Restated Credit Agreement that extended the maturity date of our $2.0 billion unsecured revolving Credit Facility to 2019 from 2016. The amendment also included modest improvements in pricing and minor changes in the composition of the group of lenders. The amended and restated Credit Facility contains a $300 letter of credit sub-facility, and also includes an accordion feature that would allow us to increase (from time to time, with willing lenders) the overall size of the facility up to an aggregate amount not to exceed $2.75 billion. We also have the right to request a one year extension on each of the first and second anniversaries of the amendment date. | |||||||||||||||||||||||||||||
We deferred $7 of debt issuance costs in connection with this amendment, which included approximately $4 of unamortized deferred debt issue costs associated with the previous Credit Facility. The write-off of debt issuance costs associated with lenders that reduced their participation in the amended and restated Credit Facility was not material. | |||||||||||||||||||||||||||||
The Credit Facility provides a backstop to our $2.0 billion CP program. Proceeds from any borrowings under the Credit Facility can be used to provide working capital for the Company and its subsidiaries and for general corporate purposes. | |||||||||||||||||||||||||||||
At December 31, 2014 we had no outstanding borrowings or letters of credit under the Credit Facility. | |||||||||||||||||||||||||||||
The Credit Facility is available, without sublimit, to certain of our qualifying subsidiaries. Our obligations under the Credit Facility are unsecured and are not currently guaranteed by any of our subsidiaries. Any domestic subsidiary that guarantees more than $100 of Xerox Corporation debt must also guaranty our obligations under the Credit Facility. In the event that any of our subsidiaries borrows under the Credit Facility, its borrowings thereunder would be guaranteed by us. | |||||||||||||||||||||||||||||
Borrowings under the Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in our Credit Facility agreement, plus a spread that varies between 0.00% and 0.45% depending on our credit rating at the time of borrowing, or (b) LIBOR plus an all-in spread that varies between 0.90% and 1.45% depending on our credit rating at the time of borrowing. Based on our credit rating as of December 31, 2014, the applicable all-in spreads for the Base Rate and LIBOR borrowing were 0.10% and 1.10%, respectively. | |||||||||||||||||||||||||||||
An annual facility fee is payable to each lender in the Credit Facility at a rate that varies between 0.10% and 0.30% depending on our credit rating. Based on our credit rating as of December 31, 2014, the applicable rate is 0.15%. | |||||||||||||||||||||||||||||
The Credit Facility contains various conditions to borrowing and affirmative, negative and financial maintenance covenants. Certain of the more significant covenants are summarized below: | |||||||||||||||||||||||||||||
(a) | Maximum leverage ratio (a quarterly test that is calculated as principal debt divided by consolidated EBITDA, as defined) of 3.75x. | ||||||||||||||||||||||||||||
(b) | Minimum interest coverage ratio (a quarterly test that is calculated as consolidated EBITDA divided by consolidated interest expense) may not be less than 3.00x. | ||||||||||||||||||||||||||||
(c) | Limitations on (i) liens of Xerox and certain of our subsidiaries securing debt, (ii) certain fundamental changes to corporate structure, (iii) changes in nature of business and (iv) limitations on debt incurred by certain subsidiaries. | ||||||||||||||||||||||||||||
The Credit Facility also contains various events of default, the occurrence of which could result in termination of the lenders' commitments to lend and the acceleration of all our obligations under the Credit Facility. These events of default include, without limitation: (i) payment defaults, (ii) breaches of covenants under the Credit Facility (certain of which breaches do not have any grace period), (iii) cross-defaults and acceleration to certain of our other obligations and (iv) a change of control of Xerox. | |||||||||||||||||||||||||||||
Interest | |||||||||||||||||||||||||||||
Interest paid on our short-term and long-term debt amounted to $400, $435 and $464 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Interest expense and interest income was as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Interest expense(1) (3) | $ | 377 | $ | 403 | $ | 427 | |||||||||||||||||||||||
Interest income(2) | 397 | 494 | 610 | ||||||||||||||||||||||||||
___________ | |||||||||||||||||||||||||||||
-1 | Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
-2 | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
-3 | Excludes interest on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Equipment financing interest is determined based on an estimated cost of funds, applied against the estimated level of debt required to support our net finance receivables. The estimated cost of funds is based on our overall corporate cost of borrowing adjusted to reflect a rate that would be paid by a typical BBB rated leasing company. The estimated level of debt is based on an assumed 7 to 1 leverage ratio of debt/equity as compared to our average finance receivable balance during the applicable period. | |||||||||||||||||||||||||||||
Net (Payments) Proceeds on Debt | |||||||||||||||||||||||||||||
Net (payments) proceeds on debt as shown on the Consolidated Statements of Cash Flows was as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Net proceeds (payments) on short-term debt | $ | 145 | $ | 5 | $ | (108 | ) | ||||||||||||||||||||||
Proceeds from issuance of long-term debt | 808 | 617 | 1,116 | ||||||||||||||||||||||||||
Payments on long-term debt | (1,128 | ) | (1,056 | ) | (1,116 | ) | |||||||||||||||||||||||
Net Payments on Other Debt | $ | (175 | ) | $ | (434 | ) | $ | (108 | ) |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||||||||||||||||
We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including interest rate swap agreements, foreign currency spot, forward and swap contracts and net purchased foreign currency options to manage interest rate and foreign currency exposures. Our primary foreign currency market exposures include the Japanese Yen, Euro and U.K. Pound Sterling. The fair market values of all our derivative contracts change with fluctuations in interest rates and/or currency exchange rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities. | |||||||||||||||||||||||||||
We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with our derivative instruments because these transactions are executed with a diversified group of major financial institutions. Further, our policy is to deal only with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. | |||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
Terminated Swaps | |||||||||||||||||||||||||||
During the period from 2004 to 2011, we early terminated several interest rate swaps that were designated as fair value hedges of certain debt instruments. The associated net fair value adjustments to the debt instruments are being amortized to interest expense over the remaining term of the related notes. In 2014, 2013 and 2012, the amortization of these fair value adjustments reduced interest expense by $31, $42 and $49, respectively, and we expect to record a net decrease in interest expense of $68 in future years through 2018. | |||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||
As of December 31, 2014, pay variable/received fixed interest rate swaps with notional amounts of $300 and net asset fair value of $5 were designated and accounted for as fair value hedges. 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 during 2014. We did not have any interest rate swaps outstanding at December 31, 2013. | |||||||||||||||||||||||||||
The following is a summary of our fair value hedges at December 31, 2014: | |||||||||||||||||||||||||||
Debt Instrument | Year First Designated | Notional Amount | Net Fair Value | Weighted Average Interest Rate Paid | Interest Rate Received | Basis | Maturity | ||||||||||||||||||||
Senior Note 2021 | 2014 | $ | 300 | $ | 5 | 2.43 | % | 4.5 | % | Libor | 2021 | ||||||||||||||||
Foreign Exchange Risk Management | |||||||||||||||||||||||||||
As a global company, 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: | |||||||||||||||||||||||||||
• | Foreign currency-denominated assets and liabilities | ||||||||||||||||||||||||||
• | Forecasted purchases, and sales in foreign currency | ||||||||||||||||||||||||||
Summary of Foreign Exchange Hedging Positions | |||||||||||||||||||||||||||
At December 31, 2014, we had outstanding forward exchange and purchased option contracts with gross notional values of $2,991, which is typical of the amounts that are normally outstanding at any point during the year. Approximately 75% of these contracts mature within three months, 7% in three to six months and 18% in six to twelve months. | |||||||||||||||||||||||||||
The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2014: | |||||||||||||||||||||||||||
Currencies Hedged (Buy/Sell) | Gross | Fair Value | |||||||||||||||||||||||||
Notional | Asset | ||||||||||||||||||||||||||
Value | (Liability)(1) | ||||||||||||||||||||||||||
Euro/U.K. Pound Sterling | $ | 785 | $ | (11 | ) | ||||||||||||||||||||||
U.S. Dollar/Euro | 450 | 15 | |||||||||||||||||||||||||
Japanese Yen/U.S. Dollar | 442 | (33 | ) | ||||||||||||||||||||||||
Japanese Yen/Euro | 338 | (4 | ) | ||||||||||||||||||||||||
Canadian Dollar/Euro | 299 | (1 | ) | ||||||||||||||||||||||||
U.K. Pound Sterling/Euro | 153 | 1 | |||||||||||||||||||||||||
Swiss Franc/Euro | 83 | — | |||||||||||||||||||||||||
Philippine Peso/U.S. Dollar | 67 | — | |||||||||||||||||||||||||
Indian Rupee/U.S. Dollar | 62 | (1 | ) | ||||||||||||||||||||||||
Euro/U.S. Dollar | 53 | (1 | ) | ||||||||||||||||||||||||
Mexican Peso/U.S. Dollar | 52 | (2 | ) | ||||||||||||||||||||||||
Euro/Danish Krone | 24 | — | |||||||||||||||||||||||||
U.S. Dollar/Philippine Peso | 23 | — | |||||||||||||||||||||||||
U.S. Dollar/Canadian Dollar | 23 | — | |||||||||||||||||||||||||
Mexican Peso/Euro | 22 | — | |||||||||||||||||||||||||
All Other | 115 | 1 | |||||||||||||||||||||||||
Total Foreign Exchange Hedging | $ | 2,991 | $ | (36 | ) | ||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||
-1 | Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2014. | ||||||||||||||||||||||||||
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. No amount of ineffectiveness was recorded in the Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss was included in the assessment of hedge effectiveness. The net liability fair value of these contracts was $30 and $50 as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
Summary of Derivative Instruments Fair Value | |||||||||||||||||||||||||||
The following table provides a summary of the fair value amounts of our derivative instruments: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 7 | $ | 1 | ||||||||||||||||||||||
Other current liabilities | (39 | ) | (51 | ) | |||||||||||||||||||||||
Foreign currency options | Other current assets | 2 | — | ||||||||||||||||||||||||
Interest rate swaps | Other long-term assets | 5 | — | ||||||||||||||||||||||||
Net Designated Derivative Liability | $ | (25 | ) | $ | (50 | ) | |||||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | |||||||||||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 13 | $ | 5 | ||||||||||||||||||||||
Other current liabilities | (19 | ) | (19 | ) | |||||||||||||||||||||||
Net Undesignated Derivative Liability | $ | (6 | ) | $ | (14 | ) | |||||||||||||||||||||
Summary of Derivatives | Total Derivative Assets | $ | 27 | $ | 6 | ||||||||||||||||||||||
Total Derivative Liabilities | (58 | ) | (70 | ) | |||||||||||||||||||||||
Net Derivative Liability | $ | (31 | ) | $ | (64 | ) | |||||||||||||||||||||
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 and (losses). | |||||||||||||||||||||||||||
Designated Derivative Instruments Gains (Losses) | |||||||||||||||||||||||||||
The following tables provide a summary of gains (losses) on derivative instruments: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Derivative Gain (Loss) Recognized in Income | Hedged Item Gain (Loss) Recognized in Income | ||||||||||||||||||||||||
Relationships | Recognized in Income | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Interest rate contracts | Interest expense | $ | 5 | $ | — | $ | — | $ | (5 | ) | $ | — | $ | — | |||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) Recognized in OCI (Effective Portion) | Location of Derivative | Gain (Loss) Reclassified from AOCI to Income (Effective Portion) | ||||||||||||||||||||||||
Hedging Relationships | Gain (Loss) Reclassified | ||||||||||||||||||||||||||
from AOCI into Income | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | (Effective Portion) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Foreign exchange contracts – forwards/options | $ | (20 | ) | $ | (126 | ) | $ | (50 | ) | Cost of sales | $ | (36 | ) | $ | (123 | ) | $ | 37 | |||||||||
No amount of ineffectiveness was recorded in the Consolidated Statements of 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 December 31, 2014, net after-tax losses of $22 were 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 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 re-measurement of the underlying foreign currency-denominated asset or liability. | |||||||||||||||||||||||||||
The following table provides a summary of losses on non-designated derivative instruments: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | Location of Derivative Loss | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Foreign exchange contracts – forwards | Other expense – Currency losses, net | $ | (10 | ) | $ | (86 | ) | $ | (38 | ) | |||||||||||||||||
During the three years ended December 31, 2014, we recorded Currency (losses) gains, net of $(5), $7 and $(3), respectively. Currency (losses) gains, net includes the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives, as well as the re-measurement of foreign currency-denominated assets and liabilities. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities | |||||||||||||||
The following table represents assets and liabilities fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. | ||||||||||||||||
As of December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts - forwards | $ | 20 | $ | 6 | ||||||||||||
Foreign currency options | 2 | — | ||||||||||||||
Interest rate swaps | 5 | — | ||||||||||||||
Deferred compensation investments in cash surrender life insurance | 94 | 88 | ||||||||||||||
Deferred compensation investments in mutual funds | 32 | 28 | ||||||||||||||
Total | $ | 153 | $ | 122 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts - forwards | $ | 58 | $ | 70 | ||||||||||||
Deferred compensation plan liabilities | 135 | 125 | ||||||||||||||
Total | $ | 193 | $ | 195 | ||||||||||||
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 Company-owned life insurance is reflected at cash surrender value. Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for actively traded investments similar to those held by the plan. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections, based on quoted prices for similar assets in actively traded markets. | ||||||||||||||||
Summary of Other Financial Assets and Liabilities Fair Value Measured on a Nonrecurring Basis | ||||||||||||||||
The estimated fair values of our other financial assets and liabilities fair value measured on a nonrecurring basis were as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 1,411 | $ | 1,411 | $ | 1,764 | $ | 1,764 | ||||||||
Accounts receivable, net | 2,652 | 2,652 | 2,929 | 2,929 | ||||||||||||
Short-term debt | 1,427 | 1,417 | 1,117 | 1,126 | ||||||||||||
Long-term debt | 6,314 | 6,719 | 6,904 | 7,307 | ||||||||||||
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 and Long-term debt was estimated based on quoted market prices for publicly traded securities (Level 1) or 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. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | ||||||||||||||||||||||||||||||||||||||
We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans. | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 3,893 | $ | 5,033 | $ | 6,664 | $ | 6,708 | $ | 856 | $ | 989 | |||||||||||||||||||||||||||
Service cost | 9 | 10 | 34 | 91 | 9 | 9 | |||||||||||||||||||||||||||||||||
Interest cost | 281 | 154 | 272 | 260 | 36 | 33 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 5 | 6 | 16 | 14 | |||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 813 | (440 | ) | 1,069 | (203 | ) | 119 | (88 | ) | ||||||||||||||||||||||||||||||
Currency exchange rate changes | — | — | (594 | ) | 98 | (13 | ) | (10 | ) | ||||||||||||||||||||||||||||||
Curtailments | (7 | ) | — | — | (10 | ) | — | — | |||||||||||||||||||||||||||||||
Benefits paid/settlements | (273 | ) | (864 | ) | (279 | ) | (264 | ) | (86 | ) | (91 | ) | |||||||||||||||||||||||||||
Other | — | — | (5 | ) | (22 | ) | — | — | |||||||||||||||||||||||||||||||
Benefit Obligation, December 31 | $ | 4,716 | $ | 3,893 | $ | 7,166 | $ | 6,664 | $ | 937 | $ | 856 | |||||||||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, January 1 | $ | 2,876 | $ | 3,573 | $ | 5,789 | $ | 5,431 | $ | — | $ | — | |||||||||||||||||||||||||||
Actual return on plan assets | 398 | 139 | 899 | 326 | — | — | |||||||||||||||||||||||||||||||||
Employer contribution | 124 | 27 | 160 | 203 | 70 | 77 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 5 | 6 | 16 | 14 | |||||||||||||||||||||||||||||||||
Currency exchange rate changes | — | — | (484 | ) | 88 | — | — | ||||||||||||||||||||||||||||||||
Benefits paid/settlements | (273 | ) | (864 | ) | (279 | ) | (264 | ) | (86 | ) | (91 | ) | |||||||||||||||||||||||||||
Other | 1 | 1 | (2 | ) | (1 | ) | — | — | |||||||||||||||||||||||||||||||
Fair Value of Plan Assets, December 31 | $ | 3,126 | $ | 2,876 | $ | 6,088 | $ | 5,789 | $ | — | $ | — | |||||||||||||||||||||||||||
Net Funded Status at December 31(1) | $ | (1,590 | ) | $ | (1,017 | ) | $ | (1,078 | ) | $ | (875 | ) | $ | (937 | ) | $ | (856 | ) | |||||||||||||||||||||
Amounts Recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||||||
Other long-term assets | $ | — | $ | — | $ | 17 | $ | 55 | $ | — | $ | — | |||||||||||||||||||||||||||
Accrued compensation and benefit costs | (24 | ) | (25 | ) | (28 | ) | (30 | ) | (72 | ) | (71 | ) | |||||||||||||||||||||||||||
Pension and other benefit liabilities | (1,566 | ) | (992 | ) | (1,040 | ) | (900 | ) | — | — | |||||||||||||||||||||||||||||
Post-retirement medical benefits | — | — | — | — | (865 | ) | (785 | ) | |||||||||||||||||||||||||||||||
Discontinued Operations (2) | — | — | (27 | ) | — | — | — | ||||||||||||||||||||||||||||||||
Net Amounts Recognized | $ | (1,590 | ) | $ | (1,017 | ) | $ | (1,078 | ) | $ | (875 | ) | $ | (937 | ) | $ | (856 | ) | |||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||||
-1 | Includes under-funded and un-funded plans. | ||||||||||||||||||||||||||||||||||||||
-2 | Represents the net un-funded pension obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. The net pension cost associated with these plans is immaterial. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||||||||||||
Benefit plans pre-tax amounts recognized in AOCL at December 31: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,301 | $ | 672 | $ | 2,036 | $ | 1,741 | $ | 122 | $ | 6 | |||||||||||||||||||||||||||
Prior service credit | (13 | ) | (15 | ) | (20 | ) | (20 | ) | (42 | ) | (85 | ) | |||||||||||||||||||||||||||
Total Pre-tax Loss (Gain) | $ | 1,288 | $ | 657 | $ | 2,016 | $ | 1,721 | $ | 80 | $ | (79 | ) | ||||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 4,716 | $ | 3,887 | $ | 6,883 | $ | 6,368 | |||||||||||||||||||||||||||||||
Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below: | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets | ||||||||||||||||||||||||||||||||||
Underfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 4,351 | $ | 4,351 | $ | 3,126 | $ | 3,571 | $ | 3,565 | $ | 2,876 | |||||||||||||||||||||||||||
Non U.S. | 6,376 | 6,125 | 5,848 | 5,350 | 5,104 | 4,964 | |||||||||||||||||||||||||||||||||
Unfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 365 | $ | 365 | $ | — | $ | 322 | $ | 322 | $ | — | |||||||||||||||||||||||||||
Non U.S. | 567 | 551 | — | 540 | 526 | — | |||||||||||||||||||||||||||||||||
Total Underfunded and Unfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 4,716 | $ | 4,716 | $ | 3,126 | $ | 3,893 | $ | 3,887 | $ | 2,876 | |||||||||||||||||||||||||||
Non U.S. | 6,943 | 6,676 | 5,848 | 5,890 | 5,630 | 4,964 | |||||||||||||||||||||||||||||||||
Total | $ | 11,659 | $ | 11,392 | $ | 8,974 | $ | 9,783 | $ | 9,517 | $ | 7,840 | |||||||||||||||||||||||||||
Our pension plan assets and benefit obligations at December 31, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||||
(in billions) | Fair Value of Pension Plan Assets | Pension Benefit Obligations | Net Funded Status | ||||||||||||||||||||||||||||||||||||
U.S. funded | $ | 3.1 | $ | 4.4 | $ | (1.3 | ) | ||||||||||||||||||||||||||||||||
U.S. unfunded | — | 0.3 | (0.3 | ) | |||||||||||||||||||||||||||||||||||
Total U.S. | $ | 3.1 | $ | 4.7 | $ | (1.6 | ) | ||||||||||||||||||||||||||||||||
U.K. | 3.9 | 4.2 | (0.3 | ) | |||||||||||||||||||||||||||||||||||
Canada | 0.8 | 0.9 | (0.1 | ) | |||||||||||||||||||||||||||||||||||
Other funded | 1.4 | 1.6 | (0.2 | ) | |||||||||||||||||||||||||||||||||||
Other unfunded | — | 0.5 | (0.5 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 9.2 | $ | 11.9 | $ | (2.7 | ) | ||||||||||||||||||||||||||||||||
Prior to the freeze of current benefits (see below), most of our defined benefit pension plans generally provided employees a benefit, depending on eligibility, calculated under a highest average pay and years of service formula. Our primary domestic defined benefit pension plans provided a benefit at the greater of (i) the highest average pay and years of service formula, (ii) the benefit calculated under a formula that provides for the accumulation of salary and interest credits during an employee's work life or (iii) the individual account balance from the Company's prior defined contribution plan (Transitional Retirement Account or TRA). | |||||||||||||||||||||||||||||||||||||||
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows: | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||||||||||||||||
Service cost | $ | 9 | $ | 10 | $ | 112 | $ | 34 | $ | 91 | $ | 83 | $ | 9 | $ | 9 | $ | 9 | |||||||||||||||||||||
Interest cost(1) | 281 | 154 | 282 | 272 | 260 | 270 | 36 | 33 | 42 | ||||||||||||||||||||||||||||||
Expected return on plan assets(2) | (290 | ) | (179 | ) | (306 | ) | (342 | ) | (317 | ) | (307 | ) | — | — | — | ||||||||||||||||||||||||
Recognized net actuarial loss | 17 | 19 | 53 | 54 | 77 | 53 | 1 | 2 | 1 | ||||||||||||||||||||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | (23 | ) | (1 | ) | — | — | (43 | ) | (43 | ) | (41 | ) | |||||||||||||||||||||||
Recognized settlement loss | 51 | 162 | 82 | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Recognized curtailment gain | — | — | — | (1 | ) | (8 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Defined Benefit Plans | 66 | 164 | 200 | 16 | 103 | 100 | 3 | 1 | 11 | ||||||||||||||||||||||||||||||
Defined contribution plans (3) | 58 | 64 | 28 | 44 | 25 | 33 | n/a | n/a | n/a | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | 124 | 228 | 228 | 60 | 128 | 133 | 3 | 1 | 11 | ||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | 697 | (403 | ) | 427 | 481 | (224 | ) | 416 | 119 | (88 | ) | 18 | |||||||||||||||||||||||||||
Prior service credit | — | — | (2 | ) | (6 | ) | (14 | ) | (1 | ) | — | — | (6 | ) | |||||||||||||||||||||||||
Amortization of net actuarial loss | (68 | ) | (181 | ) | (135 | ) | (54 | ) | (77 | ) | (54 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||||||||||||
Amortization of net prior service credit | 2 | 2 | 23 | 1 | — | — | 43 | 43 | 41 | ||||||||||||||||||||||||||||||
Curtailment gain | — | — | — | 2 | — | — | n/a | n/a | n/a | ||||||||||||||||||||||||||||||
Total Recognized in Other Comprehensive Income | 631 | (582 | ) | 313 | 424 | (315 | ) | 361 | 161 | (47 | ) | 52 | |||||||||||||||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 755 | $ | (354 | ) | $ | 541 | $ | 484 | $ | (187 | ) | $ | 494 | $ | 164 | $ | (46 | ) | $ | 63 | ||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||||
-1 | Interest cost includes interest expense on non-TRA obligations of $371, $349 and $382 and interest expense directly allocated to TRA participant accounts of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
-2 | Expected return on plan assets includes expected investment income on non-TRA assets of $450, $431 and $443 and actual investment income on TRA assets of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
-3 | Excludes contributions related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||||||||||||
The net actuarial loss and prior service credit for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $111 and $(4), respectively, excluding amounts that may be recognized through settlement losses. The net actuarial loss and prior service credit for the retiree health benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $5 and $(30), respectively. | |||||||||||||||||||||||||||||||||||||||
Pension plan assets consist of both defined benefit plan assets and assets legally restricted to the TRA accounts. The combined investment results for these plans, along with the results for our other defined benefit plans, are shown above in the “actual return on plan assets” caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost. | |||||||||||||||||||||||||||||||||||||||
Plan Amendments | |||||||||||||||||||||||||||||||||||||||
Pension Plan Freezes | |||||||||||||||||||||||||||||||||||||||
Over the past several years, we have amended several of our major defined benefit pension plans to freeze current benefits and eliminate benefits accruals for future service including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. The freeze of current benefits is the primary driver of the reduction in pension service costs since 2012. In certain Non-U.S. plans we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. | |||||||||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||||||||
Current Allocation | |||||||||||||||||||||||||||||||||||||||
As of the 2014 and 2013 measurement dates, the global pension plan assets were $9.2 billion and $8.7 billion, respectively. These assets were invested among several asset classes. | |||||||||||||||||||||||||||||||||||||||
The following tables presents the defined benefit plans assets measured at fair value and the basis for that measurement: | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||
Asset Class | Level 1 | Level 2 | Level 3 | Total | % | Level 1 | Level 2 | Level 3 | Total | % | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 52 | $ | — | $ | — | $ | 52 | 2 | % | $ | 608 | $ | — | $ | — | $ | 608 | 10 | % | |||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. large cap | 332 | 15 | — | 347 | 11 | % | 253 | 52 | — | 305 | 5 | % | |||||||||||||||||||||||||||
U.S. mid cap | 73 | — | — | 73 | 2 | % | 10 | — | — | 10 | — | % | |||||||||||||||||||||||||||
U.S. small cap | 52 | 39 | — | 91 | 3 | % | 28 | — | — | 28 | — | % | |||||||||||||||||||||||||||
International developed | 195 | 92 | — | 287 | 9 | % | 1,065 | 162 | — | 1,227 | 20 | % | |||||||||||||||||||||||||||
Emerging markets | 140 | 113 | — | 253 | 8 | % | 276 | 69 | — | 345 | 6 | % | |||||||||||||||||||||||||||
Global Equity | 2 | 7 | — | 9 | — | % | 4 | 6 | — | 10 | — | % | |||||||||||||||||||||||||||
Total Equity Securities | 794 | 266 | — | 1,060 | 33 | % | 1,636 | 289 | — | 1,925 | 31 | % | |||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | 145 | — | 145 | 5 | % | 7 | 26 | — | 33 | 1 | % | |||||||||||||||||||||||||||
Debt security issued by government agency | — | 225 | — | 225 | 7 | % | 25 | 1,536 | — | 1,561 | 26 | % | |||||||||||||||||||||||||||
Corporate bonds | — | 988 | — | 988 | 32 | % | 23 | 850 | — | 873 | 15 | % | |||||||||||||||||||||||||||
Asset backed securities | — | 10 | — | 10 | — | % | — | 1 | — | 1 | — | % | |||||||||||||||||||||||||||
Total Fixed Income Securities | — | 1,368 | — | 1,368 | 44 | % | 55 | 2,413 | — | 2,468 | 42 | % | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | (1 | ) | — | (1 | ) | — | % | — | 128 | — | 128 | 2 | % | |||||||||||||||||||||||||
Foreign exchange contracts | — | 1 | — | 1 | — | % | — | (5 | ) | — | (5 | ) | — | % | |||||||||||||||||||||||||
Equity contracts | — | — | — | — | — | % | — | — | — | — | — | % | |||||||||||||||||||||||||||
Other contracts | — | — | — | — | — | % | — | 14 | — | 14 | — | % | |||||||||||||||||||||||||||
Total Derivatives | — | — | — | — | — | % | — | 137 | — | 137 | 2 | % | |||||||||||||||||||||||||||
Real estate | 46 | 39 | 25 | 110 | 4 | % | — | 29 | 279 | 308 | 5 | % | |||||||||||||||||||||||||||
Private equity/venture capital | — | — | 497 | 497 | 16 | % | — | — | 499 | 499 | 8 | % | |||||||||||||||||||||||||||
Guaranteed insurance contracts | — | — | — | — | — | % | — | — | 129 | 129 | 2 | % | |||||||||||||||||||||||||||
Other(1) | (1 | ) | 40 | — | 39 | 1 | % | 6 | 8 | — | 14 | — | % | ||||||||||||||||||||||||||
Total Fair Value of Plan Assets | $ | 891 | $ | 1,713 | $ | 522 | $ | 3,126 | 100 | % | $ | 2,305 | $ | 2,876 | $ | 907 | $ | 6,088 | 100 | % | |||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
-1 | Other Level 1 assets include net non-financial assets of $(1) U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||
Asset Class | Level 1 | Level 2 | Level 3 | Total | % | Level 1 | Level 2 | Level 3 | Total | % | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 48 | $ | — | $ | — | $ | 48 | 1 | % | $ | 688 | $ | — | $ | — | $ | 688 | 12 | % | |||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. large cap | 319 | 13 | — | 332 | 12 | % | 220 | 55 | — | 275 | 5 | % | |||||||||||||||||||||||||||
U.S. mid cap | 71 | — | — | 71 | 2 | % | 13 | — | — | 13 | — | % | |||||||||||||||||||||||||||
U.S. small cap | 48 | 46 | — | 94 | 3 | % | 40 | — | — | 40 | 1 | % | |||||||||||||||||||||||||||
International developed | 182 | 123 | — | 305 | 11 | % | 1,314 | 212 | — | 1,526 | 26 | % | |||||||||||||||||||||||||||
Emerging markets | 171 | 69 | — | 240 | 8 | % | 262 | 76 | — | 338 | 6 | % | |||||||||||||||||||||||||||
Global Equity | 2 | 7 | — | 9 | — | % | 5 | — | — | 5 | — | % | |||||||||||||||||||||||||||
Total Equity Securities | 793 | 258 | — | 1,051 | 36 | % | 1,854 | 343 | — | 2,197 | 38 | % | |||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | 74 | — | 74 | 3 | % | 4 | 16 | — | 20 | — | % | |||||||||||||||||||||||||||
Debt security issued by government agency | — | 180 | — | 180 | 6 | % | 31 | 1,189 | — | 1,220 | 21 | % | |||||||||||||||||||||||||||
Corporate bonds | — | 908 | — | 908 | 32 | % | 146 | 660 | — | 806 | 14 | % | |||||||||||||||||||||||||||
Asset backed securities | — | 10 | — | 10 | — | % | — | 1 | — | 1 | — | % | |||||||||||||||||||||||||||
Total Fixed Income Securities | — | 1,172 | — | 1,172 | 41 | % | 181 | 1,866 | — | 2,047 | 35 | % | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | (17 | ) | — | (17 | ) | (1 | )% | — | 62 | — | 62 | 1 | % | |||||||||||||||||||||||||
Foreign exchange contracts | — | (12 | ) | — | (12 | ) | — | % | 14 | 30 | — | 44 | 1 | % | |||||||||||||||||||||||||
Equity contracts | — | — | — | — | — | % | — | — | — | — | — | % | |||||||||||||||||||||||||||
Other contracts | — | — | — | — | — | % | 62 | — | — | 62 | 1 | % | |||||||||||||||||||||||||||
Total Derivatives | — | (29 | ) | — | (29 | ) | (1 | )% | 76 | 92 | — | 168 | 3 | % | |||||||||||||||||||||||||
Real estate | 40 | 34 | 29 | 103 | 4 | % | 32 | 35 | 269 | 336 | 6 | % | |||||||||||||||||||||||||||
Private equity/venture capital | — | — | 451 | 451 | 16 | % | — | — | 212 | 212 | 4 | % | |||||||||||||||||||||||||||
Guaranteed insurance contracts | — | — | — | — | — | % | — | — | 135 | 135 | 2 | % | |||||||||||||||||||||||||||
Other(1) | 10 | 70 | — | 80 | 3 | % | 6 | — | — | 6 | — | % | |||||||||||||||||||||||||||
Total Fair Value of Plan Assets | $ | 891 | $ | 1,505 | $ | 480 | $ | 2,876 | 100 | % | $ | 2,837 | $ | 2,336 | $ | 616 | $ | 5,789 | 100 | % | |||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
-1 | Other Level 1 assets include net non-financial liabilities of $9 U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. | ||||||||||||||||||||||||||||||||||||||
The following tables represents a roll-forward of the defined benefit plans assets measured using significant unobservable inputs (Level 3 assets): | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans Assets | Non-U.S. Defined Benefit Plans Assets | ||||||||||||||||||||||||||||||||||||||
Real Estate | Private Equity/Venture Capital | Total | Real Estate | Private Equity/Venture Capital | Guaranteed Insurance Contracts | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 58 | $ | 300 | $ | 358 | $ | 332 | $ | 3 | $ | 131 | $ | 466 | |||||||||||||||||||||||||
Purchases | 1 | 177 | 178 | 64 | 193 | 3 | 260 | ||||||||||||||||||||||||||||||||
Sales | (36 | ) | (59 | ) | (95 | ) | (128 | ) | — | (5 | ) | (133 | ) | ||||||||||||||||||||||||||
Net transfers in from Level 1 | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Realized gains (losses) | 24 | 46 | 70 | 17 | 2 | 4 | 23 | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) | (18 | ) | (13 | ) | (31 | ) | (21 | ) | 2 | (2 | ) | (21 | ) | ||||||||||||||||||||||||||
Currency translation | — | — | — | 5 | 12 | 5 | 22 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 29 | 451 | 480 | 269 | 212 | 135 | 616 | ||||||||||||||||||||||||||||||||
Purchases | 1 | 44 | 45 | 74 | 279 | 22 | 375 | ||||||||||||||||||||||||||||||||
Sales | (6 | ) | (59 | ) | (65 | ) | (64 | ) | — | (25 | ) | (89 | ) | ||||||||||||||||||||||||||
Realized gains (losses) | (7 | ) | 41 | 34 | 20 | — | 15 | 35 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 8 | 20 | 28 | (1 | ) | 38 | — | 37 | |||||||||||||||||||||||||||||||
Currency translation | — | — | — | (19 | ) | (30 | ) | (18 | ) | (67 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 25 | $ | 497 | $ | 522 | $ | 279 | $ | 499 | $ | 129 | $ | 907 | |||||||||||||||||||||||||
Valuation Method | |||||||||||||||||||||||||||||||||||||||
Our primary Level 3 assets are Real Estate and Private Equity/Venture Capital investments. The fair value of our real estate investment funds are based on the Net Asset Value (NAV) of our ownership interest in the funds. NAV information is received from the investment advisers and is primarily derived from third-party real estate appraisals for the properties owned. The fair value for our private equity/venture capital partnership investments are based on our share of the estimated fair values of the underlying investments held by these partnerships as reported (or expected to be reported) in their audited financial statements. The valuation techniques and inputs for our Level 3 assets have been consistently applied for all periods presented. | |||||||||||||||||||||||||||||||||||||||
Investment Strategy | |||||||||||||||||||||||||||||||||||||||
The target asset allocations for our worldwide defined benefit pension plans were: | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||||||
Equity investments | 33% | 34% | 36% | 41% | |||||||||||||||||||||||||||||||||||
Fixed income investments | 43% | 47% | 44% | 47% | |||||||||||||||||||||||||||||||||||
Real estate | 8% | 9% | 5% | 9% | |||||||||||||||||||||||||||||||||||
Private equity | 9% | 6% | 14% | —% | |||||||||||||||||||||||||||||||||||
Other | 7% | 4% | 1% | 3% | |||||||||||||||||||||||||||||||||||
Total Investment Strategy | 100% | 100% | 100% | 100% | |||||||||||||||||||||||||||||||||||
We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. The intent of this strategy is to minimize plan expenses by exceeding the interest growth in long-term plan liabilities. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. This consideration involves the use of long-term measures that address both return and risk. The investment portfolio contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations, and may include Company stock. Other assets such as real estate, private equity, and hedge funds are used to improve portfolio diversification. Derivatives may be used to hedge market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Investment risks and returns are measured and monitored on an ongoing basis through annual liability measurements and quarterly investment portfolio reviews. | |||||||||||||||||||||||||||||||||||||||
Expected Long-term Rate of Return | |||||||||||||||||||||||||||||||||||||||
We employ a “building block” approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term relationships between equities and fixed income are assessed. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established giving consideration to investment diversification and rebalancing. Peer data and historical returns are reviewed periodically to assess reasonableness and appropriateness. | |||||||||||||||||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||||||||||||||||
In 2014, we made cash contributions of $284 ($124 U.S. and $160 Non-U.S.) and $70 to our defined benefit pension plans and retiree health benefit plans, respectively. | |||||||||||||||||||||||||||||||||||||||
In 2015, based on current actuarial calculations, we expect to make contributions of approximately $340 ($180 U.S. and $160 non-U.S.) to our defined benefit pension plans and approximately $71 to our retiree health benefit plans. | |||||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Total | Retiree Health | ||||||||||||||||||||||||||||||||||||
2015 | $ | 643 | $ | 251 | $ | 894 | $ | 71 | |||||||||||||||||||||||||||||||
2016 | 343 | 252 | 595 | 70 | |||||||||||||||||||||||||||||||||||
2017 | 336 | 261 | 597 | 70 | |||||||||||||||||||||||||||||||||||
2018 | 333 | 269 | 602 | 69 | |||||||||||||||||||||||||||||||||||
2019 | 326 | 279 | 605 | 68 | |||||||||||||||||||||||||||||||||||
Years 2020-2023 | 1,681 | 1,539 | 3,220 | 323 | |||||||||||||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at the plan measurement dates: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.1 | % | 4.8 | % | 4.2 | % | 3.7 | % | 4 | % | |||||||||||||||||||||||||||
Rate of compensation increase | 0.2 | % | 2.6 | % | 0.2 | % | 2.7 | % | 0.2 | % | 2.6 | % | |||||||||||||||||||||||||||
Retiree Health | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.5 | % | 3.6 | % | |||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.1 | % | 4.8 | % | 4.2 | % | 3.7 | % | 4 | % | 4.8 | % | 4.6 | % | |||||||||||||||||||||||
Expected return on plan assets | 7.5 | % | 5.2 | % | 7.8 | % | 6.1 | % | 7.8 | % | 6.1 | % | 7.8 | % | 6.2 | % | |||||||||||||||||||||||
Rate of compensation increase | 0.2 | % | 2.6 | % | 0.2 | % | 2.7 | % | 0.2 | % | 2.6 | % | 3.5 | % | 2.7 | % | |||||||||||||||||||||||
Retiree Health | |||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.5 | % | 3.6 | % | 4.5 | % | |||||||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded. Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits. | |||||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rates were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7.2 | % | |||||||||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.9 | % | 4.9 | % | |||||||||||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||||||||||||||||
1% increase | 1% decrease | ||||||||||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 1 | $ | (1 | ) | ||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 46 | (39 | ) | ||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | |||||||||||||||||||||||||||||||||||||||
We have savings and investment plans in several countries, including the U.S., U.K. and Canada. In many instances, employees from those defined benefit pension plans that have been amended to freeze future service accruals (see "Plan Amendments" for additional information) were transitioned to an enhanced defined contribution plan. In these plans employees are allowed to contribute a portion of their salaries and bonuses to the plans, and we match a portion of the employee contributions. We recorded charges related to our defined contribution plans of $102 in 2014, $89 in 2013 and $61 in 2012. These charges exclude $8, $7 and $2 for the three years ended December 31, 2014, respectively, related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Income_and_Other_Taxes
Income and Other Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income and Other Taxes | Income and Other Taxes | ||||||||||||
Income before income taxes (pre-tax income) was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic income | $ | 675 | $ | 905 | $ | 850 | |||||||
Foreign income | 531 | 338 | 434 | ||||||||||
Income Before Income Taxes | $ | 1,206 | $ | 1,243 | $ | 1,284 | |||||||
Provisions (benefits) for income taxes were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal Income Taxes | |||||||||||||
Current | $ | (3 | ) | $ | 17 | $ | 5 | ||||||
Deferred | 79 | 66 | 93 | ||||||||||
Foreign Income Taxes | |||||||||||||
Current | 115 | 82 | 114 | ||||||||||
Deferred | 28 | 36 | (1 | ) | |||||||||
State Income Taxes | |||||||||||||
Current | 34 | 37 | 32 | ||||||||||
Deferred | 6 | 15 | 13 | ||||||||||
Total Provision | $ | 259 | $ | 253 | $ | 256 | |||||||
A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Nondeductible expenses | 2 | % | 1.5 | % | 2.6 | % | |||||||
Effect of tax law changes | (1.0 | )% | (0.6 | )% | 0.7 | % | |||||||
Change in valuation allowance for deferred tax assets | (1.6 | )% | 0.2 | % | (0.7 | )% | |||||||
State taxes, net of federal benefit | 2.2 | % | 2.7 | % | 2 | % | |||||||
Audit and other tax return adjustments | (2.9 | )% | (2.5 | )% | (4.7 | )% | |||||||
Tax-exempt income, credits and incentives | (2.4 | )% | (4.0 | )% | (2.6 | )% | |||||||
Foreign rate differential adjusted for U.S. taxation of foreign profits(1) | (9.6 | )% | (12.4 | )% | (12.4 | )% | |||||||
Other | (0.2 | )% | 0.5 | % | — | % | |||||||
Effective Income Tax Rate | 21.5 | % | 20.4 | % | 19.9 | % | |||||||
____________ | |||||||||||||
-1 | The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. | ||||||||||||
On a consolidated basis, we paid a total of $121, $155 and $137 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2014, respectively. | |||||||||||||
Total income tax (benefit) expense was allocated as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Pre-tax income | $ | 259 | $ | 253 | $ | 256 | |||||||
Discontinued operations(1) | 6 | 27 | 21 | ||||||||||
Common shareholders' equity: | |||||||||||||
Changes in defined benefit plans | (408 | ) | 318 | (233 | ) | ||||||||
Stock option and incentive plans, net | (18 | ) | (13 | ) | (5 | ) | |||||||
Cash flow hedges | — | — | (24 | ) | |||||||||
Translation adjustments | (2 | ) | (9 | ) | (9 | ) | |||||||
Total Income Tax (Benefit) Expense | $ | (163 | ) | $ | 576 | $ | 6 | ||||||
_____________ | |||||||||||||
-1 | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||||||||||||
Unrecognized Tax Benefits and Audit Resolutions | |||||||||||||
We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Each period we assess uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more likely than not recognition threshold. Where we have determined that our tax return filing position does not satisfy the more likely than not recognition threshold, we have recorded no tax benefits. | |||||||||||||
We are also subject to ongoing tax examinations in numerous jurisdictions due to the extensive geographical scope of our operations. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. As of December 31, 2014, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 267 | $ | 201 | $ | 225 | |||||||
Additions related to current year | 16 | 60 | 28 | ||||||||||
Additions related to prior years positions | 10 | 39 | 5 | ||||||||||
Reductions related to prior years positions | (35 | ) | (19 | ) | (36 | ) | |||||||
Settlements with taxing authorities(1) | (10 | ) | — | (13 | ) | ||||||||
Reductions related to lapse of statute of limitations | (6 | ) | (14 | ) | (8 | ) | |||||||
Currency | (2 | ) | — | — | |||||||||
Balance at December 31 | $ | 240 | $ | 267 | $ | 201 | |||||||
_______________ | |||||||||||||
-1 | Majority of settlements did not result in the utilization of cash. | ||||||||||||
Included in the balances at December 31, 2014, 2013 and 2012 are $39, $36 and $16, respectively, of tax positions that are highly certain of realizability but for which there is uncertainty about the timing or that they may be reduced through an indirect benefit from other taxing jurisdictions. Because of the impact of deferred tax accounting, other than for the possible incurrence of interest and penalties, the disallowance of these positions would not affect the annual effective tax rate. | |||||||||||||
We recognized interest and penalties accrued on unrecognized tax benefits, as well as interest received from favorable settlements within income tax expense. We had $17, $20 and $20 accrued for the payment of interest and penalties associated with unrecognized tax benefits at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
In the U.S., with the exception of ACS, we are no longer subject to U.S. federal income tax examinations for years before 2009. ACS is no longer subject to such examinations for years before 2005. With respect to our major foreign jurisdictions, we are no longer subject to tax examinations by tax authorities for years before 2003. | |||||||||||||
Deferred Income Taxes | |||||||||||||
We have not provided deferred taxes on approximately $8.5 billion of undistributed earnings of foreign subsidiaries and other foreign investments carried at equity at December 31, 2014, as such undistributed earnings have been determined to be indefinitely reinvested and we currently do not plan to initiate any action that would precipitate a deferred tax impact. We do not believe it is practical to calculate the potential deferred tax impact, as there is a significant amount of uncertainty with respect to determining the amount of foreign tax credits as well as any additional local withholding tax and other indirect tax consequences that may arise from the distribution of these earnings. In addition, because such earnings have been indefinitely reinvested in our foreign operations, repatriation would require liquidation of those investments or a recapitalization of our foreign subsidiaries, the impacts and effects of which are not readily determinable. | |||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Research and development | $ | 475 | $ | 647 | |||||||||
Post-retirement medical benefits | 341 | 310 | |||||||||||
Net operating losses | 531 | 597 | |||||||||||
Operating reserves, accruals and deferrals | 318 | 374 | |||||||||||
Tax credit carryforwards | 579 | 694 | |||||||||||
Deferred compensation | 286 | 268 | |||||||||||
Pension | 672 | 431 | |||||||||||
Other | 177 | 87 | |||||||||||
Subtotal | 3,379 | 3,408 | |||||||||||
Valuation allowance | (538 | ) | (614 | ) | |||||||||
Total | $ | 2,841 | $ | 2,794 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Unearned income and installment sales | $ | 883 | $ | 959 | |||||||||
Intangibles and goodwill | 1,161 | 1,253 | |||||||||||
Anticipated foreign repatriations | 50 | 55 | |||||||||||
Other | 154 | 53 | |||||||||||
Total | $ | 2,248 | $ | 2,320 | |||||||||
Total Deferred Taxes, Net | $ | 593 | $ | 474 | |||||||||
The above amounts are classified as current or long-term in the Consolidated Balance Sheets in accordance with the asset or liability to which they relate or, when applicable, based on the expected timing of the reversal. Current deferred tax assets at December 31, 2014 and 2013 amounted to $382 and $209, respectively. | |||||||||||||
The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more-likely-than-not, be realized in the future. The net change in the total valuation allowance for the years ended December 31, 2014 and 2013 was a decrease of $76 and $40, respectively. The valuation allowance relates primarily to certain net operating loss carryforwards, tax credit carryforwards and deductible temporary differences for which we have concluded it is more-likely-than-not that these items will not be realized in the ordinary course of operations. | |||||||||||||
Although realization is not assured, we have concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences. | |||||||||||||
At December 31, 2014, we had tax credit carryforwards of $579 available to offset future income taxes, of which $97 are available to carryforward indefinitely while the remaining $482 will expire 2015 through 2029 if not utilized. We also had net operating loss carryforwards for income tax purposes of $1.1 billion that will expire 2015 through 2035, if not utilized, and $2.0 billion available to offset future taxable income indefinitely. |
Contingencies_and_Litigation
Contingencies and Litigation | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Contingencies and Litigation | Contingencies and Litigation | |
As more fully discussed below, 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. | ||
Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and nonconsolidated affiliates when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property such as patents, environmental matters, and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of December 31, 2014, we have accrued our estimate of liability incurred under our indemnification arrangements and guarantees. | ||
Brazil Tax and Labor Contingencies | ||
Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, 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. | ||
The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. As of December 31, 2014, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of related interest, amounted to approximately $817 with the decrease from December 31, 2013 balance of approximately $933, primarily related to currency and closed cases partially offset by interest. With respect to the unreserved balance of $817, 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 of December 31, 2014 we had $135 of escrow cash deposits for matters we are disputing, and there are liens on certain Brazilian assets with a net book value of $18 and additional letters of credit of approximately $244, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens would be removed to the extent the matters are resolved in our favor. We routinely assess all these matters as to 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 | ||
In re Xerox Corporation Securities Litigation: A consolidated securities law action (consisting of 17 cases) was pending in the United States District Court for the District of Connecticut (the "Court"). Defendants were the Company, Barry Romeril, Paul Allaire and G. Richard Thoman. The consolidated action was a class action on behalf of all persons and entities who purchased Xerox Corporation common stock during the period October 22, 1998 through October 7, 1999 inclusive ("Class Period") and who suffered a loss as a result of misrepresentations or omissions by Defendants as alleged by Plaintiffs (the “Class”). The Class alleged that in violation of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended (1934 Act), and SEC Rule 10b-5 thereunder, each of the defendants was liable as a participant in a fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of the Company’s common stock during the Class Period by disseminating materially false and misleading statements and/or concealing material facts relating to the defendants’ alleged failure to disclose the material negative impact that the April 1998 restructuring had on the Company’s operations and revenues. The complaint further alleged that the alleged scheme: (i) deceived the investing public regarding the economic capabilities, sales proficiencies, growth, operations and the intrinsic value of the Company’s common stock; (ii) allowed several corporate insiders, such as the named individual defendants, to sell shares of privately held common stock of the Company while in possession of materially adverse, non-public information; and (iii) caused the individual plaintiffs and the other members of the purported class to purchase common stock of the Company at inflated prices. The complaint sought unspecified compensatory damages in favor of the plaintiffs and the other members of the purported class against all defendants, jointly and severally, for all damages sustained as a result of defendants’ alleged wrongdoing, including interest thereon, together with reasonable costs and expenses incurred in the action, including counsel fees and expert fees. In 2001, the Court denied the defendants’ motion for dismissal of the complaint. The plaintiffs’ motion for class certification was denied by the Court in 2006, without prejudice to refiling. In February 2007, the Court granted the motion of the International Brotherhood of Electrical Workers Welfare Fund of Local Union No. 164, Robert W. Roten, Robert Agius ("Agius") and Georgia Stanley to appoint them as additional lead plaintiffs. In July 2007, the Court denied plaintiffs’ renewed motion for class certification, without prejudice to renewal after a pre-filing conference to identify factual disputes the Court would be required to resolve in ruling on the motion. After that conference and Agius’s withdrawal as lead plaintiff and proposed class representative, in February 2008 plaintiffs filed a second renewed motion for class certification. In April 2008, defendants filed their response and motion to disqualify Milberg LLP as a lead counsel. On September 30, 2008, the Court entered an order certifying the class and denying the appointment of Milberg LLP as class counsel. Subsequently, on April 9, 2009, the Court denied defendants’ motion to disqualify Milberg LLP. On November 6, 2008, the defendants filed a motion for summary judgment. On March 29, 2013, the Court granted defendants' motion for summary judgment in its entirety. On April 26, 2013, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit. On September 8, 2014, the Second Circuit affirmed the District Court's decision dismissing the action. The deadline for plaintiffs to file a petition for certiorari before the United States Supreme Court expired on December 8, 2014; no petition was filed. This matter is now closed. | ||
State of Texas v. Xerox Corporation, Xerox State Healthcare, LLC, and ACS State Healthcare, LLC, a Xerox Corporation: On May 9, 2014, the State of Texas, via the Texas Office of Attorney General (the “State”), filed a lawsuit in the 53rd Judicial District Court of Travis County, Texas. The lawsuit alleges that Xerox Corporation, Xerox State Healthcare, LLC, and ACS State Healthcare (collectively “Xerox” or “the Company”) violated the Texas Medicaid Fraud Prevention Act in the administration of its contract with the Texas Department of Health and Human Services (“HHSC”). The State alleges that the Company made false representations of material facts regarding the processes, procedures, implementation, and results regarding the prior authorization of orthodontic claims. The State seeks recovery of actual damages, two times the amount of any overpayments made as a result of unlawful acts, civil penalties, pre- and post-judgment interest, and all costs and attorneys’ fees. The State references the amount in controversy as exceeding hundreds of millions of dollars. Xerox filed its Answer in June, 2014 denying all allegations. Xerox will continue to vigorously defend itself in this matter. We do not believe it is probable that we will incur a material loss in excess of the amount accrued for this matter. In the course of litigation, we periodically engage in discussions with plaintiff’s counsel for possible resolution of the matter. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement for a significant amount, 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, Indemnifications and Warranty Liabilities | ||
Indemnifications Provided as Part of Contracts and Agreements | ||
We are a party to the following types of agreements pursuant to which we may be obligated to indemnify the other party with respect to certain matters: | ||
• | Contracts that we entered into for the sale or purchase of businesses or real estate assets, under which we customarily agree to hold the other party harmless against losses arising from a breach of representations and covenants, including obligations to pay rent. Typically, these relate to such matters as adequate title to assets sold, intellectual property rights, specified environmental matters and certain income taxes arising prior to the date of acquisition. | |
• | Guarantees on behalf of our subsidiaries with respect to real estate leases. These lease guarantees may remain in effect subsequent to the sale of the subsidiary. | |
• | Agreements to indemnify various service providers, trustees and bank agents from any third-party claims related to their performance on our behalf, with the exception of claims that result from third-party's own willful misconduct or gross negligence. | |
• | Guarantees of our performance in certain sales and services contracts to our customers and indirectly the performance of third parties with whom we have subcontracted for their services. This includes indemnifications to customers for losses that may be sustained as a result of the use of our equipment at a customer's location. | |
In each of these circumstances, our payment is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract and such procedures also typically allow us to challenge the other party's claims. In the case of lease guarantees, we may contest the liabilities asserted under the lease. Further, our obligations under these agreements and guarantees may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments we made. | ||
Patent Indemnifications | ||
In most sales transactions to resellers of our products, we indemnify against possible claims of patent infringement caused by our products or solutions. In addition, we indemnify certain software providers against claims that may arise as a result of our use or our subsidiaries', customers' or resellers' use of their software in our products and solutions. These indemnities usually do not include limits on the claims, provided the claim is made pursuant to the procedures required in the sales contract. | ||
Indemnification of Officers and Directors | ||
Our corporate by-laws require that, except to the extent expressly prohibited by law, we must indemnify Xerox Corporation's officers and directors against judgments, fines, penalties and amounts paid in settlement, including legal fees and all appeals, incurred in connection with civil or criminal action or proceedings, as it relates to their services to Xerox Corporation and our subsidiaries. Although the by-laws provide no limit on the amount of indemnification, we may have recourse against our insurance carriers for certain payments made by us. However, certain indemnification payments (such as those related to "clawback" provisions in certain compensation arrangements) may not be covered under our directors' and officers' insurance coverage. We also indemnify certain fiduciaries of our employee benefit plans for liabilities incurred in their service as fiduciary whether or not they are officers of the Company. Finally, in connection with our acquisition of businesses, we may become contractually obligated to indemnify certain former and current directors, officers and employees of those businesses in accordance with pre-acquisition by-laws and/or indemnification agreements and/or applicable state law. | ||
Product Warranty Liabilities | ||
In connection with our normal sales of equipment, including those under sales-type leases, we generally do not issue product warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life of the equipment under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. In a few circumstances, particularly in certain cash sales, we may issue a limited product warranty if negotiated by the customer. We also issue warranties for certain of our entry level products, where full service maintenance agreements are not available. In these instances, we record warranty obligations at the time of the sale. Aggregate product warranty liability expenses for the three years ended December 31, 2014 were $25, $28 and $29, respectively. Total product warranty liabilities as of December 31, 2014 and 2013 were $11 and $14, respectively. | ||
Other Contingencies | ||
We have issued or provided the following guarantees as of December 31, 2014: | ||
• | $455 for letters of credit issued to i) guarantee our performance under certain services contracts; ii) support certain insurance programs; and iii) support our obligations related to the Brazil tax and labor contingencies. | |
• | $720 for outstanding surety bonds. Certain contracts, primarily those involving public sector customers, require us to provide a surety bond as a guarantee of our performance of contractual obligations. Of this amount, $19 is related to discontinued operations. | |
In general, we would only be liable for the amount of these guarantees in the event of default in our performance of 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. | ||
We have service arrangements where we service third-party student loans in the Federal Family Education Loan program (FFEL) on behalf of various financial institutions. We service these loans for investors under outsourcing arrangements and do not acquire any servicing rights that are transferable by us to a third-party. At December 31, 2014, we serviced a FFEL portfolio of approximately 2.7 million loans with an outstanding principal balance of approximately $39.7 billion. Some servicing agreements contain provisions that, under certain circumstances, require us to purchase the loans from the investor if the loan guaranty has been permanently terminated as a result of a loan default caused by our servicing error. If defaults caused by us are cured during an initial period, any obligation we may have to purchase these loans expires. Loans that we purchase may be subsequently cured, the guaranty reinstated and the loans repackaged for sale to third parties. We evaluate our exposure under our purchase obligations on defaulted loans and establish a reserve for potential losses, or default liability reserve, through a charge to the provision for loss on defaulted loans purchased. The reserve is evaluated periodically and adjusted based upon management’s analysis of the historical performance of the defaulted loans. As of December 31, 2014, other current liabilities include reserves which we believe to be adequate. At December 31, 2014, other current liabilities include reserves of approximately $3 for losses on defaulted loans purchased. In addition to potential purchase obligations arising from servicing errors, various laws and regulations applicable to student loan borrowers could give rise to fines, penalties and other liabilities associated with loan servicing errors. |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock |
Series A Convertible Preferred Stock | |
We have issued 300,000 shares of Series A convertible perpetual preferred stock with an aggregate liquidation preference of $300 and an initial fair value of $349. The convertible preferred stock pays quarterly cash dividends at a rate of 8% per year ($24 per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 89.8876 shares of common stock for a total of 26,966 thousand shares (reflecting an initial conversion price of approximately $11.125 per share of common stock), subject to customary anti-dilution adjustments. | |
On or after February 5, 2015, if the closing price of our common stock exceeds 130% of the then applicable conversion price (currently $11.125 per share of common stock) for 20 out of 30 trading days, we have the right to cause any or all of the convertible preferred stock to be converted into shares of common stock at the then applicable conversion rate. The convertible preferred stock is also convertible, at the option of the holder, upon a change in control, at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for our common stock upon such change in control. In addition, upon the occurrence of certain fundamental change events, including a change in control or the delisting of Xerox's common stock, the holder of convertible preferred stock has the right to require us to redeem any or all of the convertible preferred stock in cash at a redemption price per share equal to the liquidation preference and any accrued and unpaid dividends to, but not including, the redemption date. The convertible preferred stock is classified as temporary equity (i.e., apart from permanent equity) as a result of the contingent redemption feature. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014, we had one class of preferred stock outstanding. See Note 19 - Preferred Stock for further information. We are authorized to issue approximately 22 million shares of cumulative preferred stock, $1.00 par value per share. | |||||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||
We have 1.75 billion authorized shares of common stock, $1.00 par value per share. At December 31, 2014, 113 million shares were reserved for issuance under our incentive compensation plans, 48 million shares were reserved for debt to equity exchanges and 27 million shares were reserved for conversion of the Series A convertible preferred stock. | |||||||||||||||||||||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||||||||||||||||
We account for the repurchased common stock under the cost method and include such treasury stock as a component of our common shareholder's equity. Retirement of treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by our Board of Directors. | |||||||||||||||||||||||||||||||||||||
The following provides cumulative information relating to our share repurchase programs from their inception in October 2005 through December 31, 2014 (shares in thousands): | |||||||||||||||||||||||||||||||||||||
Authorized share repurchase programs | $ | 8,000 | |||||||||||||||||||||||||||||||||||
Share repurchase cost | $ | 6,455 | |||||||||||||||||||||||||||||||||||
Share repurchase fees | $ | 10 | |||||||||||||||||||||||||||||||||||
Number of shares repurchased | 580,029 | ||||||||||||||||||||||||||||||||||||
In 2014, the Board of Directors authorized an additional $1.5 billion in share repurchase bringing the total cumulative authorization to $8 billion. As of December 31, 2014, approximately $1.5 billion of that authority remained available. | |||||||||||||||||||||||||||||||||||||
The following table reflects the changes in Common and Treasury stock shares (shares in thousands): | |||||||||||||||||||||||||||||||||||||
Common Stock Shares | Treasury Stock Shares | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 1,352,849 | 15,508 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 17,343 | — | |||||||||||||||||||||||||||||||||||
Contributions to U.S. pension plan(1) | 15,366 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 146,278 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | -146,862 | -146,862 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 1,238,696 | 14,924 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 28,731 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 65,179 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | (58,102 | ) | (58,102 | ) | |||||||||||||||||||||||||||||||||
Conversion of 2014 9% Notes | 996 | — | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 1,210,321 | 22,001 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 13,965 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 86,536 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | (100,928 | ) | (100,928 | ) | |||||||||||||||||||||||||||||||||
Conversion of 2014 9% Notes | 996 | — | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | 1,124,354 | 7,609 | |||||||||||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||
-1 | Refer to Note 16 - Employee Benefits Plans for additional information. | ||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||||||||||
We have a long-term incentive plan whereby eligible employees may be granted restricted stock units (RSUs), performance shares (PSs) and non-qualified stock options. We grant stock-based awards in order to continue to attract and retain employees and to better align employees' interests with those of our shareholders. Each of these awards is subject to settlement with newly issued shares of our common stock. At December 31, 2014 and 2013, 50 million and 59 million shares, respectively, were available for grant of awards. | |||||||||||||||||||||||||||||||||||||
Stock-based compensation expense was as follows: | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense, pre-tax | $ | 91 | $ | 90 | $ | 125 | |||||||||||||||||||||||||||||||
Income tax benefit recognized in earnings | 35 | 34 | 48 | ||||||||||||||||||||||||||||||||||
Restricted Stock Units: Compensation expense is based upon the grant date market price. The compensation expense is recorded over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest. | |||||||||||||||||||||||||||||||||||||
Performance Shares: Prior to 2014, we granted officers and selected executives PSs that vest contingent upon meeting pre-determined Revenue, Earnings per Share (EPS) and Cash Flow from Operations targets. If the annual actual results for Revenue exceed the stated targets and if the cumulative three-year actual results for EPS and Cash Flow from Operations exceed the stated targets, then the plan participants have the potential to earn additional shares of common stock. This overachievement cannot exceed 50% of the original grant. | |||||||||||||||||||||||||||||||||||||
Commencing in 2014, we expanded the PS program to include those employees who had previously been awarded RSUs, and modified the program to remove the annual performance component. All PSs granted in 2014 will vest contingent upon meeting cumulative goals for Revenue, EPS and Cash Flow from Operations over a three-year performance period. As before, if actual results exceed the stated targets, then the participants have the potential to earn additional shares of common stock: a maximum overachievement of 50% of the original grant for officers and selected executives and a maximum of 25% of the original grant for all other participants. All PSs entitle the holder to one share of common stock, payable after a three-year service period and the attainment of the stated goals. | |||||||||||||||||||||||||||||||||||||
The fair value of PSs is based upon the market price of our stock on the date of the grant. Compensation expense is recognized over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest. If the stated targets are not met, any recognized compensation cost would be reversed. | |||||||||||||||||||||||||||||||||||||
Employee Stock Options: With the exception of the conversion of ACS options in connection with the ACS acquisition in 2010, we have not issued any new stock options associated with our employee long-term incentive plan since 2004. All stock options previously issued under our employee long-term incentive plan were fully exercised, cancelled or expired as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||
There were 6,115 thousand and 14,199 thousand ACS options outstanding at December 31, 2014 and 2013, respectively. The ACS options at December 31, 2014 generally expire within the next 3 years. | |||||||||||||||||||||||||||||||||||||
Summary of Stock-based Compensation Activity | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(shares in thousands) | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 19,079 | $ | 9.62 | 30,414 | $ | 9.19 | 33,784 | $ | 8.7 | ||||||||||||||||||||||||||||
Granted | 926 | 12.3 | 610 | 9.09 | 13,033 | 7.82 | |||||||||||||||||||||||||||||||
Vested | (6,934 | ) | 10.33 | (9,992 | ) | 8.43 | (14,848 | ) | 6.89 | ||||||||||||||||||||||||||||
Cancelled | (874 | ) | 8.55 | (1,953 | ) | 8.77 | (1,555 | ) | 8.97 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 12,197 | 9.5 | 19,079 | 9.62 | 30,414 | 9.19 | |||||||||||||||||||||||||||||||
Performance Shares | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 8,058 | $ | 9.15 | 14,536 | $ | 8.74 | 9,763 | $ | 9.21 | ||||||||||||||||||||||||||||
Granted | 16,967 | 12.28 | 1,839 | 7.97 | 5,193 | 7.87 | |||||||||||||||||||||||||||||||
Vested | (2,404 | ) | 10.68 | (6,817 | ) | 8.03 | — | — | |||||||||||||||||||||||||||||
Cancelled | (1,900 | ) | 11.07 | (1,500 | ) | 8.82 | (420 | ) | 8.96 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 20,721 | 11.36 | 8,058 | 9.15 | 14,536 | 8.74 | |||||||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 14,199 | $ | 6.95 | 33,732 | $ | 6.86 | 50,070 | $ | 6.98 | ||||||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Canceled/expired | (215 | ) | 6.95 | (1,298 | ) | 6.53 | (8,617 | ) | 8.58 | ||||||||||||||||||||||||||||
Exercised | (7,869 | ) | 6.92 | (18,235 | ) | 6.82 | (7,721 | ) | 5.69 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 6,115 | 7 | 14,199 | 6.95 | 33,732 | 6.86 | |||||||||||||||||||||||||||||||
Exercisable at December 31 | 6,115 | 7 | 12,164 | 7.06 | 28,676 | 6.95 | |||||||||||||||||||||||||||||||
In 2013, we deferred the annual grant of RSUs and PSs from July 1, 2013 to January 1, 2014. RSUs granted in 2013 represent off-cycle awards while PSs granted in 2013 represent overachievement shares associated with the 2010 PSs grant, which vested in 2013. On January 1, 2014, we granted 8,395 thousand PSs with a grant date fair value of $12.17 per share (the deferral of the 2013 annual grant) and on July 1, 2014, we granted 8,518 thousand PSs with a grant date fair value of $12.38 per share (the 2014 annual grant). | |||||||||||||||||||||||||||||||||||||
The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2014 was as follows: | |||||||||||||||||||||||||||||||||||||
Awards | Unrecognized Compensation | Remaining Weighted-Average Vesting Period (Years) | |||||||||||||||||||||||||||||||||||
Restricted Stock Units | $ | 23 | 1.2 | ||||||||||||||||||||||||||||||||||
Performance Shares | 109 | 2.2 | |||||||||||||||||||||||||||||||||||
Total | $ | 132 | |||||||||||||||||||||||||||||||||||
The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows: | |||||||||||||||||||||||||||||||||||||
Awards | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||
Restricted Stock Units | $ | 169 | |||||||||||||||||||||||||||||||||||
Performance Shares | 287 | ||||||||||||||||||||||||||||||||||||
Information related to stock options outstanding and exercisable at December 31, 2014 was as follows: | |||||||||||||||||||||||||||||||||||||
Options | |||||||||||||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||||||||||||
Aggregate intrinsic value | $ | 42 | $ | 42 | |||||||||||||||||||||||||||||||||
Weighted-average remaining contractual life (years) | 2.8 | 2.8 | |||||||||||||||||||||||||||||||||||
The total intrinsic value and actual tax benefit realized for vested and exercised stock-based awards was as follows: | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Awards | Total Intrinsic Value | Cash Received | Tax Benefit | Total Intrinsic Value | Cash Received | Tax Benefit | Total Intrinsic Value | Cash Received | Tax Benefit | ||||||||||||||||||||||||||||
Restricted Stock Units | $ | 85 | $ | — | $ | 26 | $ | 91 | $ | — | $ | 30 | $ | 117 | $ | — | $ | 33 | |||||||||||||||||||
Performance Shares | 30 | — | 10 | 62 | — | 22 | — | — | — | ||||||||||||||||||||||||||||
Stock Options | 42 | 55 | 15 | 51 | 124 | 19 | 12 | 44 | 4 | ||||||||||||||||||||||||||||
No Performance Shares vested in 2012 since the 2009 primary award grant that normally would have vested in 2012 was replaced with a grant of Restricted Stock Units with a market based condition and therefore were accounted and reported for as Restricted Stock Units. |
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||
Other Comprehensive Income | Other Comprehensive (Loss) Income | ||||||||||||||||||||||||
Other Comprehensive (Loss) Income is comprised of the following: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | ||||||||||||||||||||
Translation Adjustments (Losses) Gains | $ | (736 | ) | $ | (734 | ) | $ | (194 | ) | $ | (185 | ) | $ | 104 | $ | 113 | |||||||||
Unrealized (Losses) Gains: | |||||||||||||||||||||||||
Changes in fair value of cash flow hedges losses | (20 | ) | (10 | ) | (126 | ) | (89 | ) | (50 | ) | (35 | ) | |||||||||||||
Changes in cash flow hedges reclassed to earnings(1) | 36 | 26 | 123 | 86 | (37 | ) | (28 | ) | |||||||||||||||||
Other (losses) gains | (1 | ) | (1 | ) | 3 | 3 | — | — | |||||||||||||||||
Net Unrealized Gains (Losses) | 15 | 15 | — | — | (87 | ) | (63 | ) | |||||||||||||||||
Defined Benefit Plans (Losses) Gains | |||||||||||||||||||||||||
Net actuarial/prior service (losses) gains | (1,291 | ) | (861 | ) | 729 | 483 | (852 | ) | (578 | ) | |||||||||||||||
Prior service amortization(2) | (46 | ) | (29 | ) | (45 | ) | (29 | ) | (64 | ) | (39 | ) | |||||||||||||
Actuarial loss amortization(2) | 121 | 83 | 260 | 172 | 190 | 124 | |||||||||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | 40 | 40 | 23 | 23 | (13 | ) | (13 | ) | |||||||||||||||||
Other gains (losses)(4) | 106 | 105 | (17 | ) | (17 | ) | (55 | ) | (55 | ) | |||||||||||||||
Changes in Defined Benefit Plans (Losses) Gains | (1,070 | ) | (662 | ) | 950 | 632 | (794 | ) | (561 | ) | |||||||||||||||
Other Comprehensive (Loss) Income | (1,791 | ) | (1,381 | ) | 756 | 447 | (777 | ) | (511 | ) | |||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | |||||||||||||||
Other Comprehensive (Loss) Income Attributable to Xerox | $ | (1,790 | ) | $ | (1,380 | ) | $ | 757 | $ | 448 | $ | (777 | ) | $ | (511 | ) | |||||||||
_____________________________ | |||||||||||||||||||||||||
-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: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cumulative translation adjustments | $ | (1,743 | ) | $ | (1,010 | ) | $ | (826 | ) | ||||||||||||||||
Other unrealized losses, net | (22 | ) | (37 | ) | (37 | ) | |||||||||||||||||||
Benefit plans net actuarial losses and prior service credits(1) | (2,394 | ) | (1,732 | ) | (2,364 | ) | |||||||||||||||||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ | (4,159 | ) | $ | (2,779 | ) | $ | (3,227 | ) | ||||||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Includes our share of Fuji Xerox. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings per Share | Earnings per Share | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic Earnings per Share: | |||||||||||||
Net income from continuing operations attributable to Xerox | $ | 1,084 | $ | 1,139 | $ | 1,152 | |||||||
Accrued dividends on preferred stock | (24 | ) | (24 | ) | (24 | ) | |||||||
Net Income From Continuing Operations Available to Common Shareholders | $ | 1,060 | $ | 1,115 | $ | 1,128 | |||||||
Net (loss) income from discontinued operations attributable to Xerox | (115 | ) | 20 | 43 | |||||||||
Adjusted Net Income Available to Common Shareholders | $ | 945 | $ | 1,135 | $ | 1,171 | |||||||
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 | ||||||||||
Basic Earnings (Loss) per Share: | |||||||||||||
Continuing operations | $ | 0.92 | $ | 0.91 | $ | 0.87 | |||||||
Discontinued operations | (0.10 | ) | 0.02 | 0.03 | |||||||||
Basic Earnings per Share | $ | 0.82 | $ | 0.93 | $ | 0.9 | |||||||
Diluted Earnings per Share: | |||||||||||||
Net income from continuing operations attributable to Xerox | $ | 1,084 | $ | 1,139 | $ | 1,152 | |||||||
Accrued dividends on preferred stock | — | — | (24 | ) | |||||||||
Interest on Convertible Securities, net | — | 1 | 1 | ||||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | $ | 1,084 | $ | 1,140 | $ | 1,129 | |||||||
Net (loss) income from discontinued operations attributable to Xerox | (115 | ) | 20 | 43 | |||||||||
Adjusted Net Income Available to Common Shareholders | $ | 969 | $ | 1,160 | $ | 1,172 | |||||||
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 | ||||||||||
Common shares issuable with respect to: | |||||||||||||
Stock options | 2,976 | 5,401 | 4,335 | ||||||||||
Restricted stock and performance shares | 14,256 | 13,931 | 20,804 | ||||||||||
Convertible preferred stock | 26,966 | 26,966 | — | ||||||||||
Convertible securities | — | 1,743 | 1,992 | ||||||||||
Adjusted Weighted Average Common Shares Outstanding | 1,198,563 | 1,273,527 | 1,329,184 | ||||||||||
Diluted Earnings (Loss) per Share: | |||||||||||||
Continuing operations | $ | 0.9 | $ | 0.89 | $ | 0.85 | |||||||
Discontinued operations | (0.09 | ) | 0.02 | 0.03 | |||||||||
Diluted Earnings per Share | $ | 0.81 | $ | 0.91 | $ | 0.88 | |||||||
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 (shares in thousands): | |||||||||||||
Stock Options | 3,139 | 8,798 | 29,397 | ||||||||||
Restricted stock and performance shares | 17,987 | 12,411 | 23,430 | ||||||||||
Convertible preferred stock | — | — | 26,966 | ||||||||||
Total Anti-Dilutive Securities | 21,126 | 21,209 | 79,793 | ||||||||||
Dividends per Common Share | $ | 0.25 | $ | 0.23 | $ | 0.17 | |||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
In January 2015, we completed the acquisition of Intrepid Learning Solutions, Inc. (Intrepid), a Seattle-based company, for $28 in cash. Intrepid provides outsourced learning services primarily in the aerospace manufacturing and technology industries. The acquisition of Intrepid will solidify the position of Xerox's Learning Services unit as a leading provider of end-to-end outsourced learning services, and will also add key vertical market expertise in the aerospace industry. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
For the three years ended December 31, 2014 | |||||||||||||||||||||
(in millions) | Balance | Additions | Amounts | Deductions | Balance | ||||||||||||||||
at beginning | charged to | (credited) | and other, net | at end | |||||||||||||||||
of period | bad debt | charged to | of recoveries (2) | of period | |||||||||||||||||
provision (1) | other income | ||||||||||||||||||||
statement | |||||||||||||||||||||
accounts (1) | |||||||||||||||||||||
2014 Allowance for Losses: | |||||||||||||||||||||
Accounts Receivable | $ | 112 | $ | 20 | $ | (3 | ) | $ | (41 | ) | $ | 88 | |||||||||
Finance Receivables | 154 | 33 | 3 | (59 | ) | 131 | |||||||||||||||
$ | 266 | $ | 53 | $ | — | $ | (100 | ) | $ | 219 | |||||||||||
2013 Allowance for Losses: | |||||||||||||||||||||
Accounts Receivable | $ | 108 | $ | 39 | $ | (2 | ) | $ | (33 | ) | $ | 112 | |||||||||
Finance Receivables | 170 | 81 | 5 | (102 | ) | 154 | |||||||||||||||
$ | 278 | $ | 120 | $ | 3 | $ | (135 | ) | $ | 266 | |||||||||||
2012 Allowance for Losses: | |||||||||||||||||||||
Accounts Receivable | $ | 102 | $ | 44 | $ | 3 | $ | (41 | ) | $ | 108 | ||||||||||
Finance Receivables | 201 | 75 | 5 | (111 | ) | 170 | |||||||||||||||
$ | 303 | $ | 119 | $ | 8 | $ | (152 | ) | $ | 278 | |||||||||||
__________ | |||||||||||||||||||||
-1 | Bad debt provisions relate to estimated losses due to credit and similar collectibility issues. Other charges (credits) relate to adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. | ||||||||||||||||||||
-2 | Deductions and other, net of recoveries primarily relates to receivable write-offs, but also includes the impact of foreign currency translation adjustments and recoveries of previously written off receivables. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Consolidation | Basis of Consolidation | |
The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. | ||
We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. | ||
For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements. | ||
In December 2014, we announced an agreement to sell our Information Technology Outsourcing (ITO) business to Atos SE (Atos); the sale is expected to close in the first half of 2015. As a result of the pending sale and having met applicable accounting requirements, we reported the ITO business as held for sale and a discontinued operation at December 31, 2014. In 2014 we also completed the disposal of two smaller businesses - Xerox Audio Visual Solutions, Inc. (XAV) and Truckload Management Services (TMS) - that were also reported as discontinued operations. All prior periods have been reclassified to conform to this presentation. In 2013 we completed the sale of our U.S. and Canadian (North American or N.A.) and Western European (European) Paper businesses. Results from these paper-related businesses are reported as Discontinued Operations and all prior period results have been reclassified to conform to this presentation. Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||
Use of Estimates | Use of Estimates | |
The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. | ||
Revenue Recognition | Revenue Recognition | |
We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows: | ||
Equipment-Related Revenues | ||
Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis. | ||
Technical Services: Technical service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. | ||
Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract. | ||
Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.” | ||
Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. | ||
Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product. | ||
Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. | ||
In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. | ||
Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms. | ||
Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement. | ||
Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. | ||
We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. | ||
With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. | ||
Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. | ||
Services-Related Revenue | ||
Outsourcing: Revenues associated with outsourcing services are generally recognized as services are rendered, which is generally on the basis of the number of accounts or transactions processed. Information technology processing revenues are recognized as services are provided to the customer, generally at the contractual selling prices of resources consumed or capacity utilized by our customers. In those service arrangements where final acceptance of a system or solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on cost reimbursable contracts are recognized by applying an estimated factor to costs as incurred, determined by the contract provisions and prior experience. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. Revenues on time and material contracts are recognized at the contractual rates as the labor hours and direct expenses are incurred. | ||
Revenues on certain fixed price contracts where we provide system development and implementation services are recognized over the contract term based on the percentage of development and implementation services that are provided during the period compared with the total estimated development and implementation services to be provided over the entire contract using the percentage-of-completion accounting methodology. These services require that we perform significant, extensive and complex design, development, modification or implementation of our customers' systems. Performance will often extend over long periods, and our right to receive future payment depends on our future performance in accordance with the agreement. | ||
The percentage-of-completion methodology involves recognizing probable and reasonably estimable revenue using the percentage of services completed, on a current cumulative cost to estimated total cost basis, using a reasonably consistent profit margin over the period. | ||
Revenues earned in excess of related billings are accrued, whereas billings in excess of revenues earned are deferred until the related services are provided. We recognize revenues for non-refundable, upfront implementation fees on a straight-line basis over the period between the initiation of the ongoing services through the end of the contract term. | ||
In connection with our services arrangements, we incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. Certain initial direct costs of an arrangement are capitalized and amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. | ||
Spending associated with customer-related deferred set-up/transition and inducement costs was $80, $107 and $109 in 2014, 2013 and 2012, respectively, excluding the ITO business(1). At December 31, 2014 and 2013 the balance of deferred costs was $323 (of which $96 relates to our ITO business(1)) and $399, respectively. The balance at December 31, 2014 excluding ITO of $227, is expected to be amortized over a weighted average period of approximately 7 years and amortization expense in 2015 is expected to be approximately $94. | ||
Long-lived assets used in the fulfillment of the arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. | ||
Our outsourcing services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenue. | ||
-1 | Our ITO business is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |
Other Revenue Recognition Policies | ||
Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables: | ||
• | Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above. | |
• | Contracts for multiple types of outsourcing services, as well as professional and value-added services. For instance, we may contract for an implementation or development project and also provide services to operate the system over a period of time; or we may contract to scan, manage and store customer documents. | |
In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria: | ||
• | The delivered item(s) has value to the customer on a stand-alone basis; and | |
• | If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. | |
Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable. | ||
Revenue-based taxes: We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The primary revenue-based taxes are sales tax and value-added tax (VAT). | ||
Leases | Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. | |
We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. | ||
With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. | ||
Services-Related Revenue | Services-Related Revenue | |
Outsourcing: Revenues associated with outsourcing services are generally recognized as services are rendered, which is generally on the basis of the number of accounts or transactions processed. Information technology processing revenues are recognized as services are provided to the customer, generally at the contractual selling prices of resources consumed or capacity utilized by our customers. In those service arrangements where final acceptance of a system or solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on cost reimbursable contracts are recognized by applying an estimated factor to costs as incurred, determined by the contract provisions and prior experience. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. Revenues on time and material contracts are recognized at the contractual rates as the labor hours and direct expenses are incurred. | ||
Revenues on certain fixed price contracts where we provide system development and implementation services are recognized over the contract term based on the percentage of development and implementation services that are provided during the period compared with the total estimated development and implementation services to be provided over the entire contract using the percentage-of-completion accounting methodology. These services require that we perform significant, extensive and complex design, development, modification or implementation of our customers' systems. Performance will often extend over long periods, and our right to receive future payment depends on our future performance in accordance with the agreement. | ||
The percentage-of-completion methodology involves recognizing probable and reasonably estimable revenue using the percentage of services completed, on a current cumulative cost to estimated total cost basis, using a reasonably consistent profit margin over the period. | ||
Revenues earned in excess of related billings are accrued, whereas billings in excess of revenues earned are deferred until the related services are provided. We recognize revenues for non-refundable, upfront implementation fees on a straight-line basis over the period between the initiation of the ongoing services through the end of the contract term. | ||
In connection with our services arrangements, we incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. Certain initial direct costs of an arrangement are capitalized and amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. | ||
Spending associated with customer-related deferred set-up/transition and inducement costs was $80, $107 and $109 in 2014, 2013 and 2012, respectively, excluding the ITO business(1). At December 31, 2014 and 2013 the balance of deferred costs was $323 (of which $96 relates to our ITO business(1)) and $399, respectively. The balance at December 31, 2014 excluding ITO of $227, is expected to be amortized over a weighted average period of approximately 7 years and amortization expense in 2015 is expected to be approximately $94. | ||
Long-lived assets used in the fulfillment of the arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. | ||
Our outsourcing services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenue. | ||
-1 | Our ITO business is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |
Multiple Element Arrangements | Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables: | |
• | Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above. | |
• | Contracts for multiple types of outsourcing services, as well as professional and value-added services. For instance, we may contract for an implementation or development project and also provide services to operate the system over a period of time; or we may contract to scan, manage and store customer documents. | |
In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria: | ||
• | The delivered item(s) has value to the customer on a stand-alone basis; and | |
• | If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. | |
Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable. | ||
Shipping and Handling | Shipping and Handling | |
Costs related to shipping and handling are recognized as incurred and included in Cost of sales in the Consolidated Statements of Income. | ||
Research, Development and Engineering (RD&E) | Research, Development and Engineering (RD&E) | |
Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $132, $122 and $110 in 2014, 2013 and 2012, respectively. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less. | ||
Accounts Receivable Sales Arrangements | Accounts Receivable Sales Arrangements | |
Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. | ||
All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in the caption “Other current assets” in the accompanying Consolidated Balance Sheets and were $73 and $121 at December 31, 2014 and 2013, respectively. | ||
Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. | ||
Inventories | Inventories | |
Inventories are carried at the lower of average cost or market. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which normally are not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations. | ||
Land, Buildings and Equipment and Equipment on Operating Leases | Land, Buildings and Equipment and Equipment on Operating Leases | |
Land, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 7 - Inventories and Equipment on Operating Leases, Net and Note 8 - Land, Buildings, Equipment and Software, Net for further discussion. | ||
Software - Internal Use and Product | Software - Internal Use and Product | |
We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. | ||
We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. | ||
Capitalization of Internal Costs | Software - Internal Use and Product | |
We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. | ||
We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized but rather is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. | ||
Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a "component") if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. | ||
When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and perform a detailed quantitative test of impairment (Step 1). If we perform the detailed quantitative impairment test and the carrying amount of the reporting unit exceeds its fair value, we would perform an analysis (Step 2) to measure such impairment. In 2014, we elected to proceed to the quantitative assessment of the recoverability of our goodwill balances for each of our reporting units in performing our annual impairment test. Based on our quantitative assessments, we concluded that the fair values of each of our reporting units in 2014 exceeded their carrying values and no impairments were identified. | ||
Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, patents on existing technology and trademarks. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. | ||
Refer to Note 10 - Goodwill and Intangible Assets, Net for further information. | ||
Impairment of Long-Lived Assets | ||
We review the recoverability of our long-lived assets, including buildings, equipment, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. | ||
Pension and Post-Retirement Benefit Obligations | Pension and Post-Retirement Benefit Obligations | |
We sponsor defined benefit pension plans in various forms in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost, are recognized in Accumulated Other Comprehensive Loss, net of tax. | ||
Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms). | ||
For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach. | ||
The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments. | ||
Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the "corridor" method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants. | ||
Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant's vested benefit is considered fully settled upon payment of the lump-sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested benefit. | ||
Foreign Currency Transactions and Re-measurement | Foreign Currency Translation and Re-measurement | |
The functional currency for most foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss. | ||
The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars. A combination of current and historical exchange rates is used in re-measuring the local currency transactions of these subsidiaries and the resulting exchange adjustments are recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurments. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Significant Accounting Estimates [Abstract] | |||||||||||||
Significant Accounting Estimates | The following table summarizes certain significant costs and expenses that require management estimates for the three years ended December 31, 2014: | ||||||||||||
Year Ended December 31, | |||||||||||||
Expense/(Income) | 2014 | 2013 | 2012 | ||||||||||
Provisions for restructuring and asset impairments - continuing operations | $ | 128 | $ | 115 | $ | 149 | |||||||
Provisions for restructuring and asset impairments - discontinued operations | 2 | 7 | 4 | ||||||||||
Provision for receivables | 53 | 123 | 127 | ||||||||||
Provisions for litigation and regulatory matters | 11 | (34 | ) | (1 | ) | ||||||||
Provisions for obsolete and excess inventory | 26 | 35 | 30 | ||||||||||
Provision for product warranty liability | 25 | 28 | 29 | ||||||||||
Depreciation and obsolescence of equipment on operating leases | 297 | 283 | 279 | ||||||||||
Depreciation of buildings and equipment (1) | 324 | 332 | 354 | ||||||||||
Amortization of internal use software (1) | 139 | 137 | 114 | ||||||||||
Amortization of product software | 62 | 43 | 19 | ||||||||||
Amortization of acquired intangible assets (1) | 315 | 305 | 301 | ||||||||||
Amortization of customer contract costs (1) | 128 | 100 | 92 | ||||||||||
Defined pension benefits - net periodic benefit cost | 82 | 267 | 300 | ||||||||||
Retiree health benefits - net periodic benefit cost | 3 | 1 | 11 | ||||||||||
Income tax expense - continuing operations | 259 | 253 | 256 | ||||||||||
Income tax expense - discontinued operations | 6 | 27 | 21 | ||||||||||
__________________ | |||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Operating segment revenues and profitability | Selected financial information for our Reportable segments was as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
Services | Document Technology | Other | Total | ||||||||||||||||||||||
2014 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,519 | $ | 8,044 | $ | 590 | $ | 19,153 | |||||||||||||||||
Finance income | 65 | 314 | 8 | 387 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,584 | $ | 8,358 | $ | 598 | $ | 19,540 | |||||||||||||||||
Interest expense | $ | 18 | $ | 121 | $ | 238 | $ | 377 | |||||||||||||||||
Segment profit (loss)(2) | 956 | 1,149 | (272 | ) | 1,833 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 32 | 128 | — | 160 | |||||||||||||||||||||
2013 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,412 | $ | 8,500 | $ | 611 | $ | 19,523 | |||||||||||||||||
Finance income | 67 | 408 | 8 | 483 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,479 | $ | 8,908 | $ | 619 | $ | 20,006 | |||||||||||||||||
Interest expense | $ | 19 | $ | 140 | $ | 244 | $ | 403 | |||||||||||||||||
Segment profit (loss)(2) | 1,055 | 964 | (217 | ) | 1,802 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 34 | 135 | — | 169 | |||||||||||||||||||||
2012 (1) | |||||||||||||||||||||||||
Revenue | $ | 10,196 | $ | 8,951 | $ | 677 | $ | 19,824 | |||||||||||||||||
Finance income | 75 | 511 | 11 | 597 | |||||||||||||||||||||
Total Segment Revenue | $ | 10,271 | $ | 9,462 | $ | 688 | $ | 20,421 | |||||||||||||||||
Interest expense | $ | 19 | $ | 172 | $ | 236 | $ | 427 | |||||||||||||||||
Segment profit (loss)(2) | 1,091 | 1,065 | (254 | ) | 1,902 | ||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 30 | 122 | — | 152 | |||||||||||||||||||||
____________________________ | |||||||||||||||||||||||||
-1 | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | ||||||||||||||||||||||||
-2 | Depreciation and amortization expense, which is recorded in Cost of Sales, Cost of Services, RD&E and SAG are included in segment profit above. This information is neither identified nor internally reported to our CODM. | ||||||||||||||||||||||||
Reconciliation to pre-tax income (loss) | The following is a reconciliation of segment profit to pre-tax income: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
Segment Profit Reconciliation to Pre-tax Income | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Total Segment Profit | $ | 1,833 | $ | 1,802 | $ | 1,902 | |||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||||
Amortization of intangible assets | (315 | ) | (305 | ) | (301 | ) | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | (160 | ) | (169 | ) | (152 | ) | |||||||||||||||||||
Restructuring and related costs(1) | (149 | ) | (115 | ) | (149 | ) | |||||||||||||||||||
Restructuring charges of Fuji Xerox | (3 | ) | (9 | ) | (16 | ) | |||||||||||||||||||
Litigation matters | — | 37 | — | ||||||||||||||||||||||
Other | — | 2 | — | ||||||||||||||||||||||
Pre-tax Income | $ | 1,206 | $ | 1,243 | $ | 1,284 | |||||||||||||||||||
____________________________ | |||||||||||||||||||||||||
-1 | 2014 includes Restructuring and asset impairment charges of $128 and Business transformation costs of $21. Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs. | ||||||||||||||||||||||||
Revenue and long-lived assets by geography | Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for the three years ended December 31: | ||||||||||||||||||||||||
Revenues | Long-Lived Assets (1) (2) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
United States | $ | 13,041 | $ | 13,272 | $ | 13,323 | $ | 1,758 | $ | 1,870 | $ | 1,966 | |||||||||||||
Europe | 4,428 | 4,414 | 4,599 | 632 | 761 | 784 | |||||||||||||||||||
Other areas | 2,071 | 2,320 | 2,499 | 240 | 243 | 262 | |||||||||||||||||||
Total Revenues and Long-Lived Assets | $ | 19,540 | $ | 20,006 | $ | 20,421 | $ | 2,630 | $ | 2,874 | $ | 3,012 | |||||||||||||
________________ | |||||||||||||||||||||||||
-1 | Long-lived assets are comprised of (i) land, buildings and equipment, net, (ii) equipment on operating leases, net, (iii) internal use software, net and (iv) product software, net. | ||||||||||||||||||||||||
-2 | Long-lived assets at December 31, 2014 includes $241 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price allocations for our 2014 acquisitions as of the acquisition dates: | ||||||
Weighted-Average Life (Years) | Total 2014 Acquisitions | ||||||
Accounts/finance receivables | $ | 33 | |||||
Intangible assets: | |||||||
Customer relationships | 13 | 71 | |||||
Trademarks | 11 | 6 | |||||
Non-compete agreements | 4 | 3 | |||||
Software | 7 | 25 | |||||
Goodwill | 249 | ||||||
Other assets | 26 | ||||||
Total Assets Acquired | 413 | ||||||
Liabilities assumed | (73 | ) | |||||
Total Purchase Price | $ | 340 | |||||
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||
Summarized Financial Information - Discontinued Operations | Summarized financial information for our Discontinued Operations is as follows: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
ITO | Other | Total | ITO | Other | Total | ITO | Other | Total | |||||||||||||||||||||||||||||
Revenues | $ | 1,320 | $ | 45 | $ | 1,365 | $ | 1,335 | $ | 497 | $ | 1,832 | $ | 1,213 | $ | 756 | $ | 1,969 | |||||||||||||||||||
Income (loss) from operations | $ | 74 | $ | (1 | ) | $ | 73 | $ | 70 | $ | 2 | $ | 72 | $ | 47 | $ | 17 | $ | 64 | ||||||||||||||||||
Loss on disposal | (181 | ) | (1 | ) | (182 | ) | — | (25 | ) | (25 | ) | — | — | — | |||||||||||||||||||||||
Net (loss) income before income taxes | $ | (107 | ) | $ | (2 | ) | $ | (109 | ) | $ | 70 | $ | (23 | ) | $ | 47 | $ | 47 | $ | 17 | $ | 64 | |||||||||||||||
Income tax expense | (5 | ) | (1 | ) | (6 | ) | (24 | ) | (3 | ) | (27 | ) | (16 | ) | (5 | ) | (21 | ) | |||||||||||||||||||
(Loss) income from discontinued operations, net of tax | $ | (112 | ) | $ | (3 | ) | $ | (115 | ) | $ | 46 | $ | (26 | ) | $ | 20 | $ | 31 | $ | 12 | $ | 43 | |||||||||||||||
Discontinued Operations - Balance Sheet | The following is a summary of the the major categories of assets and liabilities of the ITO business held for sale at December 31, 2014: | ||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Accounts receivable, net | $ | 213 | |||||||||||||||||||||||||||||||||||
Other current assets | 146 | ||||||||||||||||||||||||||||||||||||
Land, buildings and equipment, net | 220 | ||||||||||||||||||||||||||||||||||||
Intangible assets, net | 197 | ||||||||||||||||||||||||||||||||||||
Goodwill | 337 | ||||||||||||||||||||||||||||||||||||
Other long-term assets | 147 | ||||||||||||||||||||||||||||||||||||
Total Assets of Discontinued Operations | $ | 1,260 | |||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 31 | |||||||||||||||||||||||||||||||||||
Accounts payable | 32 | ||||||||||||||||||||||||||||||||||||
Accrued pension and benefit costs | 9 | ||||||||||||||||||||||||||||||||||||
Unearned income | 64 | ||||||||||||||||||||||||||||||||||||
Other current liabilities | 112 | ||||||||||||||||||||||||||||||||||||
Long-term debt | 44 | ||||||||||||||||||||||||||||||||||||
Pension and other benefit liabilities | 25 | ||||||||||||||||||||||||||||||||||||
Other long-term liabilities | 54 | ||||||||||||||||||||||||||||||||||||
Total Liabilities of Discontinued Operations | $ | 371 | |||||||||||||||||||||||||||||||||||
Discontinued Operations - Income Statement | The following is a summary of selected financial information of the ITO business for the three years ended December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Expense (Income): | |||||||||||||||||||||||||||||||||||||
Depreciation of buildings and equipment | $ | 98 | $ | 99 | $ | 98 | |||||||||||||||||||||||||||||||
Amortization of internal use software | 9 | 10 | 2 | ||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 27 | 27 | 27 | ||||||||||||||||||||||||||||||||||
Amortization of customer contract costs | 26 | 22 | 15 | ||||||||||||||||||||||||||||||||||
Operating lease rent expense | 258 | 241 | 185 | ||||||||||||||||||||||||||||||||||
Defined contribution plans | 8 | 7 | 2 | ||||||||||||||||||||||||||||||||||
Interest expense (1) | 4 | 3 | 3 | ||||||||||||||||||||||||||||||||||
Expenditures: | |||||||||||||||||||||||||||||||||||||
Cost of additions to land, buildings and equipment | $ | 105 | $ | 99 | $ | 140 | |||||||||||||||||||||||||||||||
Cost of additions to internal use software | 2 | 4 | 15 | ||||||||||||||||||||||||||||||||||
Customer-related deferred set-up/transition and inducement costs | 26 | 35 | 60 | ||||||||||||||||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||
-1 | Interest expense is related to capital lease obligations, which are expected to be assumed by purchaser of the ITO business. |
Accounts_Receivables_Net_Table
Accounts Receivables, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Amounts billed or billable | $ | 2,634 | $ | 2,651 | |||||||||
Unbilled amounts | 319 | 390 | |||||||||||
Allowance for doubtful accounts | (88 | ) | (112 | ) | |||||||||
Subtotal | 2,865 | 2,929 | |||||||||||
Discontinued operations (1) | (213 | ) | — | ||||||||||
Accounts Receivable, Net | $ | 2,652 | $ | 2,929 | |||||||||
-1 | Represents net accounts receivable related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||
Schedule Of Accounts Receivable Sales | Accounts receivable sales were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accounts receivable sales | $ | 2,906 | $ | 3,401 | $ | 3,699 | |||||||
Deferred proceeds | 387 | 486 | 639 | ||||||||||
Loss on sale of accounts receivable | 15 | 17 | 21 | ||||||||||
Estimated decrease to operating cash flows(1) | (68 | ) | (55 | ) | (78 | ) | |||||||
__________ | |||||||||||||
-1 | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. |
Finance_Receivables_Net_Tables
Finance Receivables, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Finance Receivables | Finance receivables, net were as follows: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross receivables | $ | 5,009 | $ | 5,349 | ||||||||||||||||||||||||||||
Unearned income | (624 | ) | (666 | ) | ||||||||||||||||||||||||||||
Subtotal | 4,385 | 4,683 | ||||||||||||||||||||||||||||||
Residual values | — | 1 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (131 | ) | (154 | ) | ||||||||||||||||||||||||||||
Finance Receivables, Net | 4,254 | 4,530 | ||||||||||||||||||||||||||||||
Less: Billed portion of finance receivables, net | 110 | 113 | ||||||||||||||||||||||||||||||
Less: Current portion of finance receivables not billed, net | 1,425 | 1,500 | ||||||||||||||||||||||||||||||
Finance Receivables Due After One Year, Net | $ | 2,719 | $ | 2,917 | ||||||||||||||||||||||||||||
Schedule of Financing Receivables, Minimum Payments | Contractual maturities of our gross finance receivables as of December 31, 2014 were as follows (including those already billed of $117): | |||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||
$ | 1,883 | $ | 1,382 | $ | 958 | $ | 558 | $ | 205 | $ | 23 | $ | 5,009 | |||||||||||||||||||
Finance Receivables Sales Activity | The following is a summary of our prior sales activity: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net carrying value (NCV) sold | $ | — | $ | 676 | $ | 682 | ||||||||||||||||||||||||||
Allowance included in NCV | — | 17 | 18 | |||||||||||||||||||||||||||||
Cash proceeds received | — | 635 | 630 | |||||||||||||||||||||||||||||
Beneficial interests received | — | 86 | 101 | |||||||||||||||||||||||||||||
Pre-tax gain on sales | — | 40 | 44 | |||||||||||||||||||||||||||||
Net fees and expenses | — | 5 | 5 | |||||||||||||||||||||||||||||
Impact to Cash Flows from Sales of Finance Receivables | The net impact from the sales of finance receivables on operating cash flows is summarized below: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | — | $ | 631 | $ | 625 | ||||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (527 | ) | (392 | ) | (45 | ) | ||||||||||||||||||||||||||
Collections on beneficial interests | 94 | 58 | — | |||||||||||||||||||||||||||||
Estimated (Decrease) Increase to Operating Cash Flows | $ | (433 | ) | $ | 297 | $ | 580 | |||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Allowance for Credit Losses Rollforward, and the Investment in Finance Receivables | The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | |||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 13 | 11 | 53 | 4 | 81 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (16 | ) | (60 | ) | (2 | ) | (86 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 2 | 1 | 3 | — | 6 | |||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | (5 | ) | — | — | (17 | ) | ||||||||||||||||||||||||
Balance at December 31, 2013 | 45 | 22 | 81 | 6 | 154 | |||||||||||||||||||||||||||
Provision | — | 9 | 15 | 9 | 33 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (14 | ) | (29 | ) | (3 | ) | (51 | ) | ||||||||||||||||||||||
Recoveries and other(1) | 1 | 3 | (9 | ) | — | (5 | ) | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 41 | $ | 20 | $ | 58 | $ | 12 | $ | 131 | ||||||||||||||||||||||
Finance Receivables Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
December 31, 2013(2) | $ | 1,666 | $ | 421 | $ | 2,292 | $ | 304 | $ | 4,683 | ||||||||||||||||||||||
December 31, 2014(2) | $ | 1,728 | $ | 424 | $ | 1,835 | $ | 398 | $ | 4,385 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-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. | |||||||||||||||||||||||||||||||
-2 | Total Finance receivables exclude residual values of $0 and $1 and the allowance for credit losses of $131 and $154 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
Credit Quality Indicators for Finance Receivables | Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | |||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Sub-standard | Total | Investment | Non-investment | Sub-standard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance Receivables | Grade | Grade | Finance Receivables | |||||||||||||||||||||||||||
Finance and other services | $ | 195 | $ | 159 | $ | 55 | $ | 409 | $ | 189 | $ | 102 | $ | 34 | $ | 325 | ||||||||||||||||
Government and education | 589 | 13 | 3 | 605 | 656 | 12 | 3 | 671 | ||||||||||||||||||||||||
Graphic arts | 148 | 79 | 90 | 317 | 142 | 59 | 108 | 309 | ||||||||||||||||||||||||
Industrial | 92 | 41 | 18 | 151 | 92 | 28 | 15 | 135 | ||||||||||||||||||||||||
Healthcare | 84 | 26 | 14 | 124 | 74 | 25 | 16 | 115 | ||||||||||||||||||||||||
Other | 55 | 38 | 29 | 122 | 55 | 27 | 29 | 111 | ||||||||||||||||||||||||
Total United States | 1,163 | 356 | 209 | 1,728 | 1,208 | 253 | 205 | 1,666 | ||||||||||||||||||||||||
Finance and other services | 54 | 31 | 12 | 97 | 46 | 18 | 11 | 75 | ||||||||||||||||||||||||
Government and education | 76 | 8 | 2 | 86 | 96 | 9 | 1 | 106 | ||||||||||||||||||||||||
Graphic arts | 58 | 49 | 36 | 143 | 56 | 52 | 48 | 156 | ||||||||||||||||||||||||
Industrial | 24 | 13 | 4 | 41 | 23 | 12 | 6 | 41 | ||||||||||||||||||||||||
Other | 34 | 19 | 4 | 57 | 29 | 9 | 5 | 43 | ||||||||||||||||||||||||
Total Canada(1) | 246 | 120 | 58 | 424 | 250 | 100 | 71 | 421 | ||||||||||||||||||||||||
France | 253 | 234 | 129 | 616 | 282 | 314 | 122 | 718 | ||||||||||||||||||||||||
U.K/Ireland | 255 | 101 | 6 | 362 | 199 | 171 | 42 | 412 | ||||||||||||||||||||||||
Central(2) | 230 | 278 | 30 | 538 | 287 | 394 | 43 | 724 | ||||||||||||||||||||||||
Southern(3) | 60 | 148 | 36 | 244 | 102 | 187 | 58 | 347 | ||||||||||||||||||||||||
Nordic(4) | 25 | 49 | 1 | 75 | 46 | 42 | 3 | 91 | ||||||||||||||||||||||||
Total Europe | 823 | 810 | 202 | 1,835 | 916 | 1,108 | 268 | 2,292 | ||||||||||||||||||||||||
Other | 195 | 163 | 40 | 398 | 226 | 69 | 9 | 304 | ||||||||||||||||||||||||
Total | $ | 2,427 | $ | 1,449 | $ | 509 | $ | 4,385 | $ | 2,600 | $ | 1,530 | $ | 553 | $ | 4,683 | ||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
-1 | Historically, the Company had included certain Canadian customers with graphic arts activity in their industry sector. In 2014, these customers were reclassified to Graphic Arts to better reflect their primary business activity. The December 31, 2013 amounts have been revised to reclassify $33 from Finance and Other Services and $38 from Industrial to Graphic Arts to be consistent with the 2014 presentation. | |||||||||||||||||||||||||||||||
-2 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-3 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-4 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
Aging of Billed Finance Receivables | The aging of our billed finance receivables is as follows: | |||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 399 | $ | 409 | $ | 13 | ||||||||||||||||||
Government and education | 14 | 4 | 3 | 21 | 584 | 605 | 25 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | 1 | 14 | 303 | 317 | 6 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 145 | 151 | 9 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 120 | 124 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 118 | 122 | 6 | |||||||||||||||||||||||||
Total United States | 43 | 10 | 6 | 59 | 1,669 | 1,728 | 64 | |||||||||||||||||||||||||
Canada | 9 | 2 | 1 | 12 | 412 | 424 | 17 | |||||||||||||||||||||||||
France | — | 1 | 2 | 3 | 613 | 616 | 35 | |||||||||||||||||||||||||
U.K./Ireland | 1 | — | — | 1 | 361 | 362 | 1 | |||||||||||||||||||||||||
Central(1) | 2 | 2 | 1 | 5 | 533 | 538 | 15 | |||||||||||||||||||||||||
Southern(2) | 14 | 4 | 4 | 22 | 222 | 244 | 17 | |||||||||||||||||||||||||
Nordic(3) | 1 | — | — | 1 | 74 | 75 | 2 | |||||||||||||||||||||||||
Total Europe | 18 | 7 | 7 | 32 | 1,803 | 1,835 | 70 | |||||||||||||||||||||||||
Other | 13 | 1 | — | 14 | 384 | 398 | — | |||||||||||||||||||||||||
Total | $ | 83 | $ | 20 | $ | 14 | $ | 117 | $ | 4,268 | $ | 4,385 | $ | 151 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 7 | $ | 2 | $ | 1 | $ | 10 | $ | 315 | $ | 325 | $ | 12 | ||||||||||||||||||
Government and education | 17 | 4 | 3 | 24 | 647 | 671 | 34 | |||||||||||||||||||||||||
Graphic arts | 12 | 1 | — | 13 | 296 | 309 | 5 | |||||||||||||||||||||||||
Industrial | 3 | 1 | 1 | 5 | 130 | 135 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | — | 4 | 111 | 115 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 107 | 111 | 3 | |||||||||||||||||||||||||
Total United States | 45 | 10 | 5 | 60 | 1,606 | 1,666 | 65 | |||||||||||||||||||||||||
Canada | 4 | 3 | 3 | 10 | 411 | 421 | 19 | |||||||||||||||||||||||||
France | — | — | — | — | 718 | 718 | 40 | |||||||||||||||||||||||||
U.K./Ireland | 1 | 1 | — | 2 | 410 | 412 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 3 | 8 | 716 | 724 | 23 | |||||||||||||||||||||||||
Southern(2) | 21 | 5 | 7 | 33 | 314 | 347 | 45 | |||||||||||||||||||||||||
Nordic(3) | 2 | — | — | 2 | 89 | 91 | — | |||||||||||||||||||||||||
Total Europe | 27 | 8 | 10 | 45 | 2,247 | 2,292 | 110 | |||||||||||||||||||||||||
Other | 8 | 1 | — | 9 | 295 | 304 | — | |||||||||||||||||||||||||
Total | $ | 84 | $ | 22 | $ | 18 | $ | 124 | $ | 4,559 | $ | 4,683 | $ | 194 | ||||||||||||||||||
___________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Inventories_and_Equipment_on_O1
Inventories and Equipment on Operating Leases, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Inventories and Equipment on Operating Leases, Net [Abstract] | |||||||||||||||||||||||
Schedule of Inventories by major category | The following is a summary of Inventories by major category: | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Finished goods | $ | 778 | $ | 837 | |||||||||||||||||||
Work-in-process | 58 | 60 | |||||||||||||||||||||
Raw materials | 98 | 101 | |||||||||||||||||||||
Total Inventories | $ | 934 | $ | 998 | |||||||||||||||||||
Schedule of Property Subject to or Available for Operating Lease | Equipment on operating leases and the related accumulated depreciation were as follows: | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Equipment on operating leases | $ | 1,531 | $ | 1,575 | |||||||||||||||||||
Accumulated depreciation | (1,006 | ) | (1,016 | ) | |||||||||||||||||||
Equipment on Operating Leases, Net | $ | 525 | $ | 559 | |||||||||||||||||||
Schedule of Future Rental Revenues on Operating Leases | Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are: | ||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 339 | $ | 246 | $ | 155 | $ | 82 | $ | 34 | $ | 5 | ||||||||||||
Land_Buildings_Equipment_and_S1
Land, Buildings, Equipment and Software, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Land, Buildings, Equipment and Software, Net [Abstract] | |||||||||||||||||||||||||
Land, buildings and equipment, net | Land, buildings and equipment, net were as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Estimated Useful Lives (Years) | 2014 | 2013 | |||||||||||||||||||||||
Land | $ | 46 | $ | 50 | |||||||||||||||||||||
Building and building equipment | 25 to 50 | 1,038 | 1,086 | ||||||||||||||||||||||
Leasehold improvements | Varies | 486 | 483 | ||||||||||||||||||||||
Plant machinery | 5 to 12 | 1,375 | 1,493 | ||||||||||||||||||||||
Office furniture and equipment | 3 to 15 | 1,938 | 1,826 | ||||||||||||||||||||||
Other | 4 to 20 | 78 | 83 | ||||||||||||||||||||||
Construction in progress | 80 | 66 | |||||||||||||||||||||||
Subtotal | 5,041 | 5,087 | |||||||||||||||||||||||
Accumulated depreciation | (3,698 | ) | (3,621 | ) | |||||||||||||||||||||
Subtotal | 1,343 | 1,466 | |||||||||||||||||||||||
Discontinued operations (1) | (220 | ) | — | ||||||||||||||||||||||
Land, Buildings and Equipment, Net | $ | 1,123 | $ | 1,466 | |||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Represents net fixed assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Land, Buildings and Equipment Depreciation Expense | Depreciation expense and operating lease rent expense were as follows: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Depreciation expense (1) | $ | 324 | $ | 332 | $ | 354 | |||||||||||||||||||
Operating lease rent expense(1) | 560 | 513 | 461 | ||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Schedule of Future Minimum Operating Lease Non-cancelable Payments | Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2014 were as follows: | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||
Continuing operations | $ | 469 | $ | 347 | $ | 170 | $ | 104 | $ | 79 | $ | 57 | |||||||||||||
Discontinued operations (1) | 117 | 43 | 18 | 8 | 6 | — | |||||||||||||||||||
Minimum operating lease commitments | $ | 586 | $ | 390 | $ | 188 | $ | 112 | $ | 85 | $ | 57 | |||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Reflects lease commitments related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Additions to Internal Use and Product Software | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
Additions to: | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Internal use software (1) | $ | 82 | $ | 77 | $ | 110 | |||||||||||||||||||
Product software | 23 | 28 | 107 | ||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||
Capitalized Costs, Internal Use and Product Software | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Capitalized costs, net: | 2014 | 2013 | |||||||||||||||||||||||
Internal use software (1) | $ | 454 | $ | 506 | |||||||||||||||||||||
Product software | 307 | 343 | |||||||||||||||||||||||
___________ | |||||||||||||||||||||||||
-1 | Internal use software at December 31, 2014 includes $20 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Investment_in_Affiliates_at_Eq1
Investment in Affiliates, at Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investments in and Advances to Affiliates | Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Fuji Xerox | $ | 1,275 | $ | 1,224 | |||||||||
Other | 63 | 61 | |||||||||||
Investments in Affiliates, at Equity | $ | 1,338 | $ | 1,285 | |||||||||
Equity Net Income in Unconsolidated Affiliates | Our equity in net income of our unconsolidated affiliates was as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fuji Xerox | $ | 147 | $ | 156 | $ | 139 | |||||||
Other | 13 | 13 | 13 | ||||||||||
Total Equity in Net Income of Unconsolidated Affiliates | $ | 160 | $ | 169 | $ | 152 | |||||||
Exchange rates for Equity Investments in Affiliates | Yen/U.S. Dollar exchange rates used to translate are as follows: | ||||||||||||
Financial Statement | Exchange Basis | 2014 | 2013 | 2012 | |||||||||
Summary of Operations | Weighted average rate | 105.58 | 97.52 | 79.89 | |||||||||
Balance Sheet | Year-end rate | 119.46 | 105.15 | 86.01 | |||||||||
Other Transactions with Equity Affiliates | Transactions with Fuji Xerox were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends received from Fuji Xerox | $ | 58 | $ | 60 | $ | 52 | |||||||
Royalty revenue earned | 115 | 118 | 132 | ||||||||||
Inventory purchases from Fuji Xerox | 1,831 | 1,903 | 2,069 | ||||||||||
Inventory sales to Fuji Xerox | 120 | 145 | 147 | ||||||||||
R&D payments received from Fuji Xerox | 1 | 2 | 2 | ||||||||||
R&D payments paid to Fuji Xerox | 17 | 21 | 15 | ||||||||||
Fuji Xerox [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Schedule of Equity Method Investments | Summarized financial information for Fuji Xerox is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Summary of Operations | |||||||||||||
Revenues | $ | 11,112 | $ | 11,415 | $ | 12,633 | |||||||
Costs and expenses | 10,242 | 10,479 | 11,783 | ||||||||||
Income before income taxes | 870 | 936 | 850 | ||||||||||
Income tax expense | 262 | 276 | 279 | ||||||||||
Net Income | 608 | 660 | 571 | ||||||||||
Less: Net income - noncontrolling interests | 4 | 5 | 6 | ||||||||||
Net Income - Fuji Xerox | $ | 604 | $ | 655 | $ | 565 | |||||||
Balance Sheet | |||||||||||||
Assets: | |||||||||||||
Current assets | $ | 4,801 | $ | 4,955 | $ | 5,154 | |||||||
Long-term assets | 4,742 | 5,160 | 6,158 | ||||||||||
Total Assets | $ | 9,543 | $ | 10,115 | $ | 11,312 | |||||||
Liabilities and Equity: | |||||||||||||
Current liabilities | $ | 2,982 | $ | 3,114 | $ | 3,465 | |||||||
Long-term debt | 580 | 978 | 1,185 | ||||||||||
Other long-term liabilities | 482 | 680 | 917 | ||||||||||
Noncontrolling interests | 30 | 28 | 27 | ||||||||||
Fuji Xerox shareholders' equity | 5,469 | 5,315 | 5,718 | ||||||||||
Total Liabilities and Equity | $ | 9,543 | $ | 10,115 | $ | 11,312 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill, by reportable segment: | ||||||||||||||||||||||||||
Services | Document Technology | Total | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 6,619 | $ | 2,184 | $ | 8,803 | |||||||||||||||||||||
Foreign currency translation | 41 | 34 | 75 | ||||||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
WDS | 69 | — | 69 | ||||||||||||||||||||||||
R.K. Dixon | — | 30 | 30 | ||||||||||||||||||||||||
Other | 51 | 34 | 85 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 6,780 | $ | 2,282 | $ | 9,062 | |||||||||||||||||||||
Foreign currency translation | 6 | 16 | 22 | ||||||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
Zeno | — | 44 | 44 | ||||||||||||||||||||||||
Impika | — | 43 | 43 | ||||||||||||||||||||||||
Other | 29 | 5 | 34 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 6,815 | $ | 2,390 | $ | 9,205 | |||||||||||||||||||||
Foreign currency translation | (98 | ) | (56 | ) | (154 | ) | |||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
Invoco | 39 | — | 39 | ||||||||||||||||||||||||
ISG | 166 | — | 166 | ||||||||||||||||||||||||
Consilience | 23 | — | 23 | ||||||||||||||||||||||||
Other | 2 | 19 | 21 | ||||||||||||||||||||||||
Divestitures (1) | (495 | ) | — | (495 | ) | ||||||||||||||||||||||
Balance at December 31, 2014 | $ | 6,452 | $ | 2,353 | $ | 8,805 | |||||||||||||||||||||
___________ | |||||||||||||||||||||||||||
-1 | Primarily represents goodwill related to our ITO business ($487) which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | Intangible assets were comprised of the following: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Weighted Average | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Amortization | Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Customer relationships | 12 years | $ | 3,636 | $ | 1,670 | $ | 1,966 | $ | 3,580 | $ | 1,359 | $ | 2,221 | ||||||||||||||
Distribution network | 25 years | 123 | 74 | 49 | 123 | 69 | 54 | ||||||||||||||||||||
Trademarks | 20 years | 274 | 87 | 187 | 269 | 72 | 197 | ||||||||||||||||||||
Technology, patents and non-compete | 9 years | 40 | 14 | 26 | 41 | 10 | 31 | ||||||||||||||||||||
Subtotal | 4,073 | 1,845 | 2,228 | 4,013 | 1,510 | 2,503 | |||||||||||||||||||||
Discontinued Operations(1) | (335 | ) | (138 | ) | (197 | ) | — | — | — | ||||||||||||||||||
Total Intangible Assets | $ | 3,738 | $ | 1,707 | $ | 2,031 | $ | 4,013 | $ | 1,510 | $ | 2,503 | |||||||||||||||
_______________ | |||||||||||||||||||||||||||
-1 | Represents net intangible assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Restructuring Program Activity | A summary of our restructuring program activity during the three years ended December 31, 2014 is as follows: | ||||||||||||||||
Severance and | Lease Cancellation | Asset Impairments(1) | Total | ||||||||||||||
Related Costs | and Other Costs | ||||||||||||||||
Balance at December 31, 2011 | $ | 116 | $ | 7 | $ | — | $ | 123 | |||||||||
Restructuring provision | 156 | 5 | 2 | 163 | |||||||||||||
Reversals of prior accruals | (13 | ) | — | (1 | ) | (14 | ) | ||||||||||
Net current period charges - continuing operations(2) | 143 | 5 | 1 | 149 | |||||||||||||
Discontinued operations(3) | 4 | — | — | 4 | |||||||||||||
Total Net Current Period Charges | 147 | 5 | 1 | 153 | |||||||||||||
Charges against reserve and currency | (140 | ) | (5 | ) | (1 | ) | (146 | ) | |||||||||
Balance at December 31, 2012 | 123 | 7 | — | 130 | |||||||||||||
Restructuring provision | 141 | 2 | 1 | 144 | |||||||||||||
Reversals of prior accruals | (29 | ) | — | — | (29 | ) | |||||||||||
Net current period charges - continuing operations(2) | 112 | 2 | 1 | 115 | |||||||||||||
Discontinued operations(3) | 7 | — | — | 7 | |||||||||||||
Total Net Current Period Charges | 119 | 2 | 1 | 122 | |||||||||||||
Charges against reserve and currency | (133 | ) | (2 | ) | (1 | ) | (136 | ) | |||||||||
Balance at December 31, 2013 | 109 | 7 | — | 116 | |||||||||||||
Restructuring provision | 143 | 5 | 7 | 155 | |||||||||||||
Reversals of prior accruals | (25 | ) | (2 | ) | — | (27 | ) | ||||||||||
Net current period charges - continuing operations(2) | 118 | 3 | 7 | 128 | |||||||||||||
Discontinued operations(3) | 2 | — | — | 2 | |||||||||||||
Total Net Current Period Charges | 120 | 3 | 7 | 130 | |||||||||||||
Charges against reserve and currency | (136 | ) | (6 | ) | (7 | ) | (149 | ) | |||||||||
Balance at December 31, 2014 | $ | 93 | $ | 4 | $ | — | $ | 97 | |||||||||
________________ | |||||||||||||||||
-1 | Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. | ||||||||||||||||
-2 | Represents amount recognized within the Consolidated Statements of Income for the years shown. | ||||||||||||||||
-3 | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||||||||||||||||
Reconciliation to the Condensed Consolidated Statements of Cash Flows | The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Charges against reserve | $ | (149 | ) | $ | (136 | ) | $ | (146 | ) | ||||||||
Asset impairment | 7 | 1 | 1 | ||||||||||||||
Effects of foreign currency and other non-cash items | 9 | (1 | ) | 1 | |||||||||||||
Restructuring Cash Payments | $ | (133 | ) | $ | (136 | ) | $ | (144 | ) | ||||||||
Total Costs Incurred with Restructuring Programs, by Segment | The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Services | $ | 38 | $ | 38 | $ | 66 | |||||||||||
Document Technology | 76 | 77 | 83 | ||||||||||||||
Other | 14 | — | — | ||||||||||||||
Total Net Restructuring Charges | $ | 128 | $ | 115 | $ | 149 | |||||||||||
Supplementary_Financial_Inform1
Supplementary Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Note 10 - Supplemental Financial Information [Abstract] | |||||||||
Supplemental Financial Information | The components of other current and long-term assets and liabilities were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Other Current Assets | |||||||||
Deferred taxes and income taxes receivable | $ | 426 | $ | 253 | |||||
Royalties, license fees and software maintenance | 190 | 185 | |||||||
Restricted cash | 113 | 147 | |||||||
Prepaid expenses | 134 | 143 | |||||||
Derivative instruments | 22 | 6 | |||||||
Deferred purchase price from sales of accounts receivables | 73 | 121 | |||||||
Beneficial interests - sales of finance receivables | 35 | 64 | |||||||
Advances and deposits | 29 | 32 | |||||||
Other | 206 | 256 | |||||||
Discontinued operations (1) | (146 | ) | — | ||||||
Total Other Current Assets | $ | 1,082 | $ | 1,207 | |||||
Other Current Liabilities | |||||||||
Deferred taxes and income taxes payable | $ | 120 | $ | 87 | |||||
Other taxes payable | 134 | 180 | |||||||
Interest payable | 78 | 80 | |||||||
Restructuring reserves | 94 | 108 | |||||||
Derivative instruments | 58 | 70 | |||||||
Product warranties | 11 | 13 | |||||||
Dividends payable | 88 | 84 | |||||||
Distributor and reseller rebates/commissions | 120 | 125 | |||||||
Servicer liabilities | 107 | 140 | |||||||
Other | 811 | 826 | |||||||
Discontinued operations (1) | (112 | ) | — | ||||||
Total Other Current Liabilities | $ | 1,509 | $ | 1,713 | |||||
Other Long-term Assets | |||||||||
Deferred taxes and income taxes receivable | $ | 367 | $ | 377 | |||||
Prepaid pension costs | 17 | 55 | |||||||
Net investment in TRG | 158 | 173 | |||||||
Internal use software, net | 454 | 506 | |||||||
Product software, net | 307 | 343 | |||||||
Restricted cash | 139 | 170 | |||||||
Debt issuance costs, net | 31 | 31 | |||||||
Customer contract costs, net | 323 | 399 | |||||||
Beneficial interest - sales of finance receivables | 42 | 86 | |||||||
Deferred compensation plan investments | 125 | 116 | |||||||
Other | 427 | 334 | |||||||
Discontinued operations (1) | (147 | ) | — | ||||||
Total Other Long-term Assets | $ | 2,243 | $ | 2,590 | |||||
Other Long-term Liabilities | |||||||||
Deferred taxes and income taxes payable | $ | 142 | $ | 286 | |||||
Environmental reserves | 9 | 12 | |||||||
Unearned income | 166 | 168 | |||||||
Restructuring reserves | 3 | 8 | |||||||
Other | 232 | 283 | |||||||
Discontinued operations (1) | (54 | ) | — | ||||||
Total Other Long-term Liabilities | $ | 498 | $ | 757 | |||||
Schedule of Restricted Cash and Cash Equivalents | Restricted cash amounts were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Tax and labor litigation deposits in Brazil | $ | 135 | $ | 167 | |||||
Escrow and cash collections related to receivable sales | 107 | 140 | |||||||
Other restricted cash | 10 | 10 | |||||||
Total Restricted Cash and Investments | $ | 252 | $ | 317 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Short-term Debt | Short-term borrowings were as follows: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Commercial paper | $ | 150 | $ | — | |||||||||||||||||||||||||
Notes Payable | 1 | 5 | |||||||||||||||||||||||||||
Current maturities of long-term debt | 1,307 | 1,112 | |||||||||||||||||||||||||||
Discontinued operations - capital leases (1) | (31 | ) | — | ||||||||||||||||||||||||||
Total Short-term Debt | $ | 1,427 | $ | 1,117 | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||
-1 | Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt was as follows: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
Weighted Average Interest Rates at December 31, 2014(2) | 2014 | 2013 | |||||||||||||||||||||||||||
Xerox Corporation | |||||||||||||||||||||||||||||
Convertible Notes due 2014 | — | % | $ | — | $ | 9 | |||||||||||||||||||||||
Senior Notes due 2014 | — | % | — | 750 | |||||||||||||||||||||||||
Floating Rate Notes due 2014 | — | % | — | 300 | |||||||||||||||||||||||||
Senior Notes due 2015 | 4.29 | % | 1,000 | 1,000 | |||||||||||||||||||||||||
Notes due 2016 | 7.2 | % | 250 | 250 | |||||||||||||||||||||||||
Senior Notes due 2016 | 6.48 | % | 700 | 700 | |||||||||||||||||||||||||
Senior Notes due 2017 | 6.83 | % | 500 | 500 | |||||||||||||||||||||||||
Senior Notes due 2017 | 2.98 | % | 500 | 500 | |||||||||||||||||||||||||
Notes due 2018 | 0.57 | % | 1 | 1 | |||||||||||||||||||||||||
Senior Notes due 2018 | 6.37 | % | 1,000 | 1,000 | |||||||||||||||||||||||||
Senior Notes due 2019 | 2.77 | % | 500 | 500 | |||||||||||||||||||||||||
Senior Notes due 2019 | 5.66 | % | 650 | 650 | |||||||||||||||||||||||||
Senior Notes due 2020 | 2.81 | % | 400 | — | |||||||||||||||||||||||||
Senior Notes due 2021 | 5.39 | % | 1,062 | 1,062 | |||||||||||||||||||||||||
Senior Notes due 2024 | 3.84 | % | 300 | — | |||||||||||||||||||||||||
Senior Notes due 2039 | 6.78 | % | 350 | 350 | |||||||||||||||||||||||||
Subtotal - Xerox Corporation | $ | 7,213 | $ | 7,572 | |||||||||||||||||||||||||
Subsidiary Companies | |||||||||||||||||||||||||||||
Senior Notes due 2015 | 4.25 | % | 250 | 250 | |||||||||||||||||||||||||
Borrowings secured by other assets | 3.85 | % | 180 | 146 | |||||||||||||||||||||||||
Other | 1.2 | % | 3 | 6 | |||||||||||||||||||||||||
Subtotal - Subsidiary Companies | $ | 433 | $ | 402 | |||||||||||||||||||||||||
Principal debt balance | 7,646 | 7,974 | |||||||||||||||||||||||||||
Unamortized discount | (54 | ) | (58 | ) | |||||||||||||||||||||||||
Fair value adjustments(1) | |||||||||||||||||||||||||||||
Terminated swaps | 68 | 100 | |||||||||||||||||||||||||||
Current swaps | 5 | — | |||||||||||||||||||||||||||
Less: current maturities | (1,307 | ) | (1,112 | ) | |||||||||||||||||||||||||
Discontinued Operations (3) | (44 | ) | — | ||||||||||||||||||||||||||
Total Long-term Debt | $ | 6,314 | $ | 6,904 | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||
-1 | Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. | ||||||||||||||||||||||||||||
-2 | Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. | ||||||||||||||||||||||||||||
-3 | Represents long-term capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows: | ||||||||||||||||||||||||||||
2015(1) | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Continuing operations | $ | 1,276 | $ | 974 | $ | 1,023 | $ | 1,017 | $ | 1,158 | $ | 2,123 | $ | 7,571 | |||||||||||||||
Discontinued operations (2) | 31 | 24 | 14 | 6 | — | — | 75 | ||||||||||||||||||||||
Total Long-term Principal Payments | $ | 1,307 | $ | 998 | $ | 1,037 | $ | 1,023 | $ | 1,158 | $ | 2,123 | $ | 7,646 | |||||||||||||||
_____________ | |||||||||||||||||||||||||||||
-1 | Quarterly long-term debt maturities from continuing operations for 2015 are $1,007, $256, $7 and $6 for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||||||||||||
-2 | Represents payments on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Schedule Of Interest Expense And Interest Income | Interest expense and interest income was as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Interest expense(1) (3) | $ | 377 | $ | 403 | $ | 427 | |||||||||||||||||||||||
Interest income(2) | 397 | 494 | 610 | ||||||||||||||||||||||||||
___________ | |||||||||||||||||||||||||||||
-1 | Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
-2 | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
-3 | Excludes interest on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||
Schedule of Net Payments/Proceeds on Other Debt | Net (payments) proceeds on debt as shown on the Consolidated Statements of Cash Flows was as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Net proceeds (payments) on short-term debt | $ | 145 | $ | 5 | $ | (108 | ) | ||||||||||||||||||||||
Proceeds from issuance of long-term debt | 808 | 617 | 1,116 | ||||||||||||||||||||||||||
Payments on long-term debt | (1,128 | ) | (1,056 | ) | (1,116 | ) | |||||||||||||||||||||||
Net Payments on Other Debt | $ | (175 | ) | $ | (434 | ) | $ | (108 | ) |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The following is a summary of our fair value hedges at December 31, 2014: | ||||||||||||||||||||||||||
Debt Instrument | Year First Designated | Notional Amount | Net Fair Value | Weighted Average Interest Rate Paid | Interest Rate Received | Basis | Maturity | ||||||||||||||||||||
Senior Note 2021 | 2014 | $ | 300 | $ | 5 | 2.43 | % | 4.5 | % | Libor | 2021 | ||||||||||||||||
Schedule of a Summary of Foreign Exchange Contracts Gross Notional Values | The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2014: | ||||||||||||||||||||||||||
Currencies Hedged (Buy/Sell) | Gross | Fair Value | |||||||||||||||||||||||||
Notional | Asset | ||||||||||||||||||||||||||
Value | (Liability)(1) | ||||||||||||||||||||||||||
Euro/U.K. Pound Sterling | $ | 785 | $ | (11 | ) | ||||||||||||||||||||||
U.S. Dollar/Euro | 450 | 15 | |||||||||||||||||||||||||
Japanese Yen/U.S. Dollar | 442 | (33 | ) | ||||||||||||||||||||||||
Japanese Yen/Euro | 338 | (4 | ) | ||||||||||||||||||||||||
Canadian Dollar/Euro | 299 | (1 | ) | ||||||||||||||||||||||||
U.K. Pound Sterling/Euro | 153 | 1 | |||||||||||||||||||||||||
Swiss Franc/Euro | 83 | — | |||||||||||||||||||||||||
Philippine Peso/U.S. Dollar | 67 | — | |||||||||||||||||||||||||
Indian Rupee/U.S. Dollar | 62 | (1 | ) | ||||||||||||||||||||||||
Euro/U.S. Dollar | 53 | (1 | ) | ||||||||||||||||||||||||
Mexican Peso/U.S. Dollar | 52 | (2 | ) | ||||||||||||||||||||||||
Euro/Danish Krone | 24 | — | |||||||||||||||||||||||||
U.S. Dollar/Philippine Peso | 23 | — | |||||||||||||||||||||||||
U.S. Dollar/Canadian Dollar | 23 | — | |||||||||||||||||||||||||
Mexican Peso/Euro | 22 | — | |||||||||||||||||||||||||
All Other | 115 | 1 | |||||||||||||||||||||||||
Total Foreign Exchange Hedging | $ | 2,991 | $ | (36 | ) | ||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||
-1 | Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2014. | ||||||||||||||||||||||||||
Schedule of a Summary of Derivative Instruments Fair Value | The following table provides a summary of the fair value amounts of our derivative instruments: | ||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 7 | $ | 1 | ||||||||||||||||||||||
Other current liabilities | (39 | ) | (51 | ) | |||||||||||||||||||||||
Foreign currency options | Other current assets | 2 | — | ||||||||||||||||||||||||
Interest rate swaps | Other long-term assets | 5 | — | ||||||||||||||||||||||||
Net Designated Derivative Liability | $ | (25 | ) | $ | (50 | ) | |||||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | |||||||||||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 13 | $ | 5 | ||||||||||||||||||||||
Other current liabilities | (19 | ) | (19 | ) | |||||||||||||||||||||||
Net Undesignated Derivative Liability | $ | (6 | ) | $ | (14 | ) | |||||||||||||||||||||
Summary of Derivatives | Total Derivative Assets | $ | 27 | $ | 6 | ||||||||||||||||||||||
Total Derivative Liabilities | (58 | ) | (70 | ) | |||||||||||||||||||||||
Net Derivative Liability | $ | (31 | ) | $ | (64 | ) | |||||||||||||||||||||
Schedule of a Summary of Fair Value Hedges Gains (Losses) | The following tables provide a summary of gains (losses) on derivative instruments: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Derivative Gain (Loss) Recognized in Income | Hedged Item Gain (Loss) Recognized in Income | ||||||||||||||||||||||||
Relationships | Recognized in Income | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Interest rate contracts | Interest expense | $ | 5 | $ | — | $ | — | $ | (5 | ) | $ | — | $ | — | |||||||||||||
Schedule of a Summary of Cash Flow Hedges Gains (Losses) | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) Recognized in OCI (Effective Portion) | Location of Derivative | Gain (Loss) Reclassified from AOCI to Income (Effective Portion) | ||||||||||||||||||||||||
Hedging Relationships | Gain (Loss) Reclassified | ||||||||||||||||||||||||||
from AOCI into Income | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | (Effective Portion) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Foreign exchange contracts – forwards/options | $ | (20 | ) | $ | (126 | ) | $ | (50 | ) | Cost of sales | $ | (36 | ) | $ | (123 | ) | $ | 37 | |||||||||
Schedule of a Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses) | The following table provides a summary of losses on non-designated derivative instruments: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | Location of Derivative Loss | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Foreign exchange contracts – forwards | Other expense – Currency losses, net | $ | (10 | ) | $ | (86 | ) | $ | (38 | ) |
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Fair Value of Financial Assets and Liabilities | The following table represents assets and liabilities fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. | |||||||||||||||
As of December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts - forwards | $ | 20 | $ | 6 | ||||||||||||
Foreign currency options | 2 | — | ||||||||||||||
Interest rate swaps | 5 | — | ||||||||||||||
Deferred compensation investments in cash surrender life insurance | 94 | 88 | ||||||||||||||
Deferred compensation investments in mutual funds | 32 | 28 | ||||||||||||||
Total | $ | 153 | $ | 122 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts - forwards | $ | 58 | $ | 70 | ||||||||||||
Deferred compensation plan liabilities | 135 | 125 | ||||||||||||||
Total | $ | 193 | $ | 195 | ||||||||||||
Schedule of 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 fair value measured on a nonrecurring basis were as follows: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 1,411 | $ | 1,411 | $ | 1,764 | $ | 1,764 | ||||||||
Accounts receivable, net | 2,652 | 2,652 | 2,929 | 2,929 | ||||||||||||
Short-term debt | 1,427 | 1,417 | 1,117 | 1,126 | ||||||||||||
Long-term debt | 6,314 | 6,719 | 6,904 | 7,307 | ||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans. | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 3,893 | $ | 5,033 | $ | 6,664 | $ | 6,708 | $ | 856 | $ | 989 | |||||||||||||||||||||||||||
Service cost | 9 | 10 | 34 | 91 | 9 | 9 | |||||||||||||||||||||||||||||||||
Interest cost | 281 | 154 | 272 | 260 | 36 | 33 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 5 | 6 | 16 | 14 | |||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 813 | (440 | ) | 1,069 | (203 | ) | 119 | (88 | ) | ||||||||||||||||||||||||||||||
Currency exchange rate changes | — | — | (594 | ) | 98 | (13 | ) | (10 | ) | ||||||||||||||||||||||||||||||
Curtailments | (7 | ) | — | — | (10 | ) | — | — | |||||||||||||||||||||||||||||||
Benefits paid/settlements | (273 | ) | (864 | ) | (279 | ) | (264 | ) | (86 | ) | (91 | ) | |||||||||||||||||||||||||||
Other | — | — | (5 | ) | (22 | ) | — | — | |||||||||||||||||||||||||||||||
Benefit Obligation, December 31 | $ | 4,716 | $ | 3,893 | $ | 7,166 | $ | 6,664 | $ | 937 | $ | 856 | |||||||||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, January 1 | $ | 2,876 | $ | 3,573 | $ | 5,789 | $ | 5,431 | $ | — | $ | — | |||||||||||||||||||||||||||
Actual return on plan assets | 398 | 139 | 899 | 326 | — | — | |||||||||||||||||||||||||||||||||
Employer contribution | 124 | 27 | 160 | 203 | 70 | 77 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 5 | 6 | 16 | 14 | |||||||||||||||||||||||||||||||||
Currency exchange rate changes | — | — | (484 | ) | 88 | — | — | ||||||||||||||||||||||||||||||||
Benefits paid/settlements | (273 | ) | (864 | ) | (279 | ) | (264 | ) | (86 | ) | (91 | ) | |||||||||||||||||||||||||||
Other | 1 | 1 | (2 | ) | (1 | ) | — | — | |||||||||||||||||||||||||||||||
Fair Value of Plan Assets, December 31 | $ | 3,126 | $ | 2,876 | $ | 6,088 | $ | 5,789 | $ | — | $ | — | |||||||||||||||||||||||||||
Net Funded Status at December 31(1) | $ | (1,590 | ) | $ | (1,017 | ) | $ | (1,078 | ) | $ | (875 | ) | $ | (937 | ) | $ | (856 | ) | |||||||||||||||||||||
Amounts Recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||||||
Other long-term assets | $ | — | $ | — | $ | 17 | $ | 55 | $ | — | $ | — | |||||||||||||||||||||||||||
Accrued compensation and benefit costs | (24 | ) | (25 | ) | (28 | ) | (30 | ) | (72 | ) | (71 | ) | |||||||||||||||||||||||||||
Pension and other benefit liabilities | (1,566 | ) | (992 | ) | (1,040 | ) | (900 | ) | — | — | |||||||||||||||||||||||||||||
Post-retirement medical benefits | — | — | — | — | (865 | ) | (785 | ) | |||||||||||||||||||||||||||||||
Discontinued Operations (2) | — | — | (27 | ) | — | — | — | ||||||||||||||||||||||||||||||||
Net Amounts Recognized | $ | (1,590 | ) | $ | (1,017 | ) | $ | (1,078 | ) | $ | (875 | ) | $ | (937 | ) | $ | (856 | ) | |||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||||
-1 | Includes under-funded and un-funded plans. | ||||||||||||||||||||||||||||||||||||||
-2 | Represents the net un-funded pension obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. The net pension cost associated with these plans is immaterial. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Benefit plans pre-tax amounts recognized in AOCL at December 31: | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,301 | $ | 672 | $ | 2,036 | $ | 1,741 | $ | 122 | $ | 6 | |||||||||||||||||||||||||||
Prior service credit | (13 | ) | (15 | ) | (20 | ) | (20 | ) | (42 | ) | (85 | ) | |||||||||||||||||||||||||||
Total Pre-tax Loss (Gain) | $ | 1,288 | $ | 657 | $ | 2,016 | $ | 1,721 | $ | 80 | $ | (79 | ) | ||||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 4,716 | $ | 3,887 | $ | 6,883 | $ | 6,368 | |||||||||||||||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below: | ||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets | ||||||||||||||||||||||||||||||||||
Underfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 4,351 | $ | 4,351 | $ | 3,126 | $ | 3,571 | $ | 3,565 | $ | 2,876 | |||||||||||||||||||||||||||
Non U.S. | 6,376 | 6,125 | 5,848 | 5,350 | 5,104 | 4,964 | |||||||||||||||||||||||||||||||||
Unfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 365 | $ | 365 | $ | — | $ | 322 | $ | 322 | $ | — | |||||||||||||||||||||||||||
Non U.S. | 567 | 551 | — | 540 | 526 | — | |||||||||||||||||||||||||||||||||
Total Underfunded and Unfunded Plans: | |||||||||||||||||||||||||||||||||||||||
U.S. | $ | 4,716 | $ | 4,716 | $ | 3,126 | $ | 3,893 | $ | 3,887 | $ | 2,876 | |||||||||||||||||||||||||||
Non U.S. | 6,943 | 6,676 | 5,848 | 5,890 | 5,630 | 4,964 | |||||||||||||||||||||||||||||||||
Total | $ | 11,659 | $ | 11,392 | $ | 8,974 | $ | 9,783 | $ | 9,517 | $ | 7,840 | |||||||||||||||||||||||||||
Schedule of Defined Benefit Pension Assets and Obligations by Geography | Our pension plan assets and benefit obligations at December 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||||||
(in billions) | Fair Value of Pension Plan Assets | Pension Benefit Obligations | Net Funded Status | ||||||||||||||||||||||||||||||||||||
U.S. funded | $ | 3.1 | $ | 4.4 | $ | (1.3 | ) | ||||||||||||||||||||||||||||||||
U.S. unfunded | — | 0.3 | (0.3 | ) | |||||||||||||||||||||||||||||||||||
Total U.S. | $ | 3.1 | $ | 4.7 | $ | (1.6 | ) | ||||||||||||||||||||||||||||||||
U.K. | 3.9 | 4.2 | (0.3 | ) | |||||||||||||||||||||||||||||||||||
Canada | 0.8 | 0.9 | (0.1 | ) | |||||||||||||||||||||||||||||||||||
Other funded | 1.4 | 1.6 | (0.2 | ) | |||||||||||||||||||||||||||||||||||
Other unfunded | — | 0.5 | (0.5 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 9.2 | $ | 11.9 | $ | (2.7 | ) | ||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations | The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows: | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||||||||||||||||
Service cost | $ | 9 | $ | 10 | $ | 112 | $ | 34 | $ | 91 | $ | 83 | $ | 9 | $ | 9 | $ | 9 | |||||||||||||||||||||
Interest cost(1) | 281 | 154 | 282 | 272 | 260 | 270 | 36 | 33 | 42 | ||||||||||||||||||||||||||||||
Expected return on plan assets(2) | (290 | ) | (179 | ) | (306 | ) | (342 | ) | (317 | ) | (307 | ) | — | — | — | ||||||||||||||||||||||||
Recognized net actuarial loss | 17 | 19 | 53 | 54 | 77 | 53 | 1 | 2 | 1 | ||||||||||||||||||||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | (23 | ) | (1 | ) | — | — | (43 | ) | (43 | ) | (41 | ) | |||||||||||||||||||||||
Recognized settlement loss | 51 | 162 | 82 | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Recognized curtailment gain | — | — | — | (1 | ) | (8 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Defined Benefit Plans | 66 | 164 | 200 | 16 | 103 | 100 | 3 | 1 | 11 | ||||||||||||||||||||||||||||||
Defined contribution plans (3) | 58 | 64 | 28 | 44 | 25 | 33 | n/a | n/a | n/a | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | 124 | 228 | 228 | 60 | 128 | 133 | 3 | 1 | 11 | ||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | 697 | (403 | ) | 427 | 481 | (224 | ) | 416 | 119 | (88 | ) | 18 | |||||||||||||||||||||||||||
Prior service credit | — | — | (2 | ) | (6 | ) | (14 | ) | (1 | ) | — | — | (6 | ) | |||||||||||||||||||||||||
Amortization of net actuarial loss | (68 | ) | (181 | ) | (135 | ) | (54 | ) | (77 | ) | (54 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||||||||||||
Amortization of net prior service credit | 2 | 2 | 23 | 1 | — | — | 43 | 43 | 41 | ||||||||||||||||||||||||||||||
Curtailment gain | — | — | — | 2 | — | — | n/a | n/a | n/a | ||||||||||||||||||||||||||||||
Total Recognized in Other Comprehensive Income | 631 | (582 | ) | 313 | 424 | (315 | ) | 361 | 161 | (47 | ) | 52 | |||||||||||||||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 755 | $ | (354 | ) | $ | 541 | $ | 484 | $ | (187 | ) | $ | 494 | $ | 164 | $ | (46 | ) | $ | 63 | ||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||||
-1 | Interest cost includes interest expense on non-TRA obligations of $371, $349 and $382 and interest expense directly allocated to TRA participant accounts of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
-2 | Expected return on plan assets includes expected investment income on non-TRA assets of $450, $431 and $443 and actual investment income on TRA assets of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
-3 | Excludes contributions related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | ||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables presents the defined benefit plans assets measured at fair value and the basis for that measurement: | ||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||
Asset Class | Level 1 | Level 2 | Level 3 | Total | % | Level 1 | Level 2 | Level 3 | Total | % | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 52 | $ | — | $ | — | $ | 52 | 2 | % | $ | 608 | $ | — | $ | — | $ | 608 | 10 | % | |||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. large cap | 332 | 15 | — | 347 | 11 | % | 253 | 52 | — | 305 | 5 | % | |||||||||||||||||||||||||||
U.S. mid cap | 73 | — | — | 73 | 2 | % | 10 | — | — | 10 | — | % | |||||||||||||||||||||||||||
U.S. small cap | 52 | 39 | — | 91 | 3 | % | 28 | — | — | 28 | — | % | |||||||||||||||||||||||||||
International developed | 195 | 92 | — | 287 | 9 | % | 1,065 | 162 | — | 1,227 | 20 | % | |||||||||||||||||||||||||||
Emerging markets | 140 | 113 | — | 253 | 8 | % | 276 | 69 | — | 345 | 6 | % | |||||||||||||||||||||||||||
Global Equity | 2 | 7 | — | 9 | — | % | 4 | 6 | — | 10 | — | % | |||||||||||||||||||||||||||
Total Equity Securities | 794 | 266 | — | 1,060 | 33 | % | 1,636 | 289 | — | 1,925 | 31 | % | |||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | 145 | — | 145 | 5 | % | 7 | 26 | — | 33 | 1 | % | |||||||||||||||||||||||||||
Debt security issued by government agency | — | 225 | — | 225 | 7 | % | 25 | 1,536 | — | 1,561 | 26 | % | |||||||||||||||||||||||||||
Corporate bonds | — | 988 | — | 988 | 32 | % | 23 | 850 | — | 873 | 15 | % | |||||||||||||||||||||||||||
Asset backed securities | — | 10 | — | 10 | — | % | — | 1 | — | 1 | — | % | |||||||||||||||||||||||||||
Total Fixed Income Securities | — | 1,368 | — | 1,368 | 44 | % | 55 | 2,413 | — | 2,468 | 42 | % | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | (1 | ) | — | (1 | ) | — | % | — | 128 | — | 128 | 2 | % | |||||||||||||||||||||||||
Foreign exchange contracts | — | 1 | — | 1 | — | % | — | (5 | ) | — | (5 | ) | — | % | |||||||||||||||||||||||||
Equity contracts | — | — | — | — | — | % | — | — | — | — | — | % | |||||||||||||||||||||||||||
Other contracts | — | — | — | — | — | % | — | 14 | — | 14 | — | % | |||||||||||||||||||||||||||
Total Derivatives | — | — | — | — | — | % | — | 137 | — | 137 | 2 | % | |||||||||||||||||||||||||||
Real estate | 46 | 39 | 25 | 110 | 4 | % | — | 29 | 279 | 308 | 5 | % | |||||||||||||||||||||||||||
Private equity/venture capital | — | — | 497 | 497 | 16 | % | — | — | 499 | 499 | 8 | % | |||||||||||||||||||||||||||
Guaranteed insurance contracts | — | — | — | — | — | % | — | — | 129 | 129 | 2 | % | |||||||||||||||||||||||||||
Other(1) | (1 | ) | 40 | — | 39 | 1 | % | 6 | 8 | — | 14 | — | % | ||||||||||||||||||||||||||
Total Fair Value of Plan Assets | $ | 891 | $ | 1,713 | $ | 522 | $ | 3,126 | 100 | % | $ | 2,305 | $ | 2,876 | $ | 907 | $ | 6,088 | 100 | % | |||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
-1 | Other Level 1 assets include net non-financial assets of $(1) U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||
Asset Class | Level 1 | Level 2 | Level 3 | Total | % | Level 1 | Level 2 | Level 3 | Total | % | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 48 | $ | — | $ | — | $ | 48 | 1 | % | $ | 688 | $ | — | $ | — | $ | 688 | 12 | % | |||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. large cap | 319 | 13 | — | 332 | 12 | % | 220 | 55 | — | 275 | 5 | % | |||||||||||||||||||||||||||
U.S. mid cap | 71 | — | — | 71 | 2 | % | 13 | — | — | 13 | — | % | |||||||||||||||||||||||||||
U.S. small cap | 48 | 46 | — | 94 | 3 | % | 40 | — | — | 40 | 1 | % | |||||||||||||||||||||||||||
International developed | 182 | 123 | — | 305 | 11 | % | 1,314 | 212 | — | 1,526 | 26 | % | |||||||||||||||||||||||||||
Emerging markets | 171 | 69 | — | 240 | 8 | % | 262 | 76 | — | 338 | 6 | % | |||||||||||||||||||||||||||
Global Equity | 2 | 7 | — | 9 | — | % | 5 | — | — | 5 | — | % | |||||||||||||||||||||||||||
Total Equity Securities | 793 | 258 | — | 1,051 | 36 | % | 1,854 | 343 | — | 2,197 | 38 | % | |||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | 74 | — | 74 | 3 | % | 4 | 16 | — | 20 | — | % | |||||||||||||||||||||||||||
Debt security issued by government agency | — | 180 | — | 180 | 6 | % | 31 | 1,189 | — | 1,220 | 21 | % | |||||||||||||||||||||||||||
Corporate bonds | — | 908 | — | 908 | 32 | % | 146 | 660 | — | 806 | 14 | % | |||||||||||||||||||||||||||
Asset backed securities | — | 10 | — | 10 | — | % | — | 1 | — | 1 | — | % | |||||||||||||||||||||||||||
Total Fixed Income Securities | — | 1,172 | — | 1,172 | 41 | % | 181 | 1,866 | — | 2,047 | 35 | % | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | (17 | ) | — | (17 | ) | (1 | )% | — | 62 | — | 62 | 1 | % | |||||||||||||||||||||||||
Foreign exchange contracts | — | (12 | ) | — | (12 | ) | — | % | 14 | 30 | — | 44 | 1 | % | |||||||||||||||||||||||||
Equity contracts | — | — | — | — | — | % | — | — | — | — | — | % | |||||||||||||||||||||||||||
Other contracts | — | — | — | — | — | % | 62 | — | — | 62 | 1 | % | |||||||||||||||||||||||||||
Total Derivatives | — | (29 | ) | — | (29 | ) | (1 | )% | 76 | 92 | — | 168 | 3 | % | |||||||||||||||||||||||||
Real estate | 40 | 34 | 29 | 103 | 4 | % | 32 | 35 | 269 | 336 | 6 | % | |||||||||||||||||||||||||||
Private equity/venture capital | — | — | 451 | 451 | 16 | % | — | — | 212 | 212 | 4 | % | |||||||||||||||||||||||||||
Guaranteed insurance contracts | — | — | — | — | — | % | — | — | 135 | 135 | 2 | % | |||||||||||||||||||||||||||
Other(1) | 10 | 70 | — | 80 | 3 | % | 6 | — | — | 6 | — | % | |||||||||||||||||||||||||||
Total Fair Value of Plan Assets | $ | 891 | $ | 1,505 | $ | 480 | $ | 2,876 | 100 | % | $ | 2,837 | $ | 2,336 | $ | 616 | $ | 5,789 | 100 | % | |||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
-1 | Other Level 1 assets include net non-financial liabilities of $9 U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. | ||||||||||||||||||||||||||||||||||||||
The following tables represents a roll-forward of the defined benefit plans assets measured using significant unobservable inputs (Level 3 assets): | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans Assets | Non-U.S. Defined Benefit Plans Assets | ||||||||||||||||||||||||||||||||||||||
Real Estate | Private Equity/Venture Capital | Total | Real Estate | Private Equity/Venture Capital | Guaranteed Insurance Contracts | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 58 | $ | 300 | $ | 358 | $ | 332 | $ | 3 | $ | 131 | $ | 466 | |||||||||||||||||||||||||
Purchases | 1 | 177 | 178 | 64 | 193 | 3 | 260 | ||||||||||||||||||||||||||||||||
Sales | (36 | ) | (59 | ) | (95 | ) | (128 | ) | — | (5 | ) | (133 | ) | ||||||||||||||||||||||||||
Net transfers in from Level 1 | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Realized gains (losses) | 24 | 46 | 70 | 17 | 2 | 4 | 23 | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) | (18 | ) | (13 | ) | (31 | ) | (21 | ) | 2 | (2 | ) | (21 | ) | ||||||||||||||||||||||||||
Currency translation | — | — | — | 5 | 12 | 5 | 22 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 29 | 451 | 480 | 269 | 212 | 135 | 616 | ||||||||||||||||||||||||||||||||
Purchases | 1 | 44 | 45 | 74 | 279 | 22 | 375 | ||||||||||||||||||||||||||||||||
Sales | (6 | ) | (59 | ) | (65 | ) | (64 | ) | — | (25 | ) | (89 | ) | ||||||||||||||||||||||||||
Realized gains (losses) | (7 | ) | 41 | 34 | 20 | — | 15 | 35 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 8 | 20 | 28 | (1 | ) | 38 | — | 37 | |||||||||||||||||||||||||||||||
Currency translation | — | — | — | (19 | ) | (30 | ) | (18 | ) | (67 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 25 | $ | 497 | $ | 522 | $ | 279 | $ | 499 | $ | 129 | $ | 907 | |||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The target asset allocations for our worldwide defined benefit pension plans were: | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||||||
Equity investments | 33% | 34% | 36% | 41% | |||||||||||||||||||||||||||||||||||
Fixed income investments | 43% | 47% | 44% | 47% | |||||||||||||||||||||||||||||||||||
Real estate | 8% | 9% | 5% | 9% | |||||||||||||||||||||||||||||||||||
Private equity | 9% | 6% | 14% | —% | |||||||||||||||||||||||||||||||||||
Other | 7% | 4% | 1% | 3% | |||||||||||||||||||||||||||||||||||
Total Investment Strategy | 100% | 100% | 100% | 100% | |||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | Total | Retiree Health | ||||||||||||||||||||||||||||||||||||
2015 | $ | 643 | $ | 251 | $ | 894 | $ | 71 | |||||||||||||||||||||||||||||||
2016 | 343 | 252 | 595 | 70 | |||||||||||||||||||||||||||||||||||
2017 | 336 | 261 | 597 | 70 | |||||||||||||||||||||||||||||||||||
2018 | 333 | 269 | 602 | 69 | |||||||||||||||||||||||||||||||||||
2019 | 326 | 279 | 605 | 68 | |||||||||||||||||||||||||||||||||||
Years 2020-2023 | 1,681 | 1,539 | 3,220 | 323 | |||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations at the plan measurement dates: | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.1 | % | 4.8 | % | 4.2 | % | 3.7 | % | 4 | % | |||||||||||||||||||||||||||
Rate of compensation increase | 0.2 | % | 2.6 | % | 0.2 | % | 2.7 | % | 0.2 | % | 2.6 | % | |||||||||||||||||||||||||||
Retiree Health | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.5 | % | 3.6 | % | |||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.1 | % | 4.8 | % | 4.2 | % | 3.7 | % | 4 | % | 4.8 | % | 4.6 | % | |||||||||||||||||||||||
Expected return on plan assets | 7.5 | % | 5.2 | % | 7.8 | % | 6.1 | % | 7.8 | % | 6.1 | % | 7.8 | % | 6.2 | % | |||||||||||||||||||||||
Rate of compensation increase | 0.2 | % | 2.6 | % | 0.2 | % | 2.7 | % | 0.2 | % | 2.6 | % | 3.5 | % | 2.7 | % | |||||||||||||||||||||||
Retiree Health | |||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.5 | % | 3.6 | % | 4.5 | % | |||||||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||||
Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded. Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits. | |||||||||||||||||||||||||||||||||||||||
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates were as follows: | ||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7.2 | % | |||||||||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.9 | % | 4.9 | % | |||||||||||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||||
1% increase | 1% decrease | ||||||||||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 1 | $ | (1 | ) | ||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 46 | (39 | ) | ||||||||||||||||||||||||||||||||||||
Income_and_Other_Taxes_Tables
Income and Other Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes (pre-tax income) was as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic income | $ | 675 | $ | 905 | $ | 850 | |||||||
Foreign income | 531 | 338 | 434 | ||||||||||
Income Before Income Taxes | $ | 1,206 | $ | 1,243 | $ | 1,284 | |||||||
Schedule of Components of Income Tax Expense (Benefit) | Provisions (benefits) for income taxes were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal Income Taxes | |||||||||||||
Current | $ | (3 | ) | $ | 17 | $ | 5 | ||||||
Deferred | 79 | 66 | 93 | ||||||||||
Foreign Income Taxes | |||||||||||||
Current | 115 | 82 | 114 | ||||||||||
Deferred | 28 | 36 | (1 | ) | |||||||||
State Income Taxes | |||||||||||||
Current | 34 | 37 | 32 | ||||||||||
Deferred | 6 | 15 | 13 | ||||||||||
Total Provision | $ | 259 | $ | 253 | $ | 256 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Nondeductible expenses | 2 | % | 1.5 | % | 2.6 | % | |||||||
Effect of tax law changes | (1.0 | )% | (0.6 | )% | 0.7 | % | |||||||
Change in valuation allowance for deferred tax assets | (1.6 | )% | 0.2 | % | (0.7 | )% | |||||||
State taxes, net of federal benefit | 2.2 | % | 2.7 | % | 2 | % | |||||||
Audit and other tax return adjustments | (2.9 | )% | (2.5 | )% | (4.7 | )% | |||||||
Tax-exempt income, credits and incentives | (2.4 | )% | (4.0 | )% | (2.6 | )% | |||||||
Foreign rate differential adjusted for U.S. taxation of foreign profits(1) | (9.6 | )% | (12.4 | )% | (12.4 | )% | |||||||
Other | (0.2 | )% | 0.5 | % | — | % | |||||||
Effective Income Tax Rate | 21.5 | % | 20.4 | % | 19.9 | % | |||||||
____________ | |||||||||||||
-1 | The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. | ||||||||||||
Schedule of Allocation of Income Tax Expense Benefit | Total income tax (benefit) expense was allocated as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Pre-tax income | $ | 259 | $ | 253 | $ | 256 | |||||||
Discontinued operations(1) | 6 | 27 | 21 | ||||||||||
Common shareholders' equity: | |||||||||||||
Changes in defined benefit plans | (408 | ) | 318 | (233 | ) | ||||||||
Stock option and incentive plans, net | (18 | ) | (13 | ) | (5 | ) | |||||||
Cash flow hedges | — | — | (24 | ) | |||||||||
Translation adjustments | (2 | ) | (9 | ) | (9 | ) | |||||||
Total Income Tax (Benefit) Expense | $ | (163 | ) | $ | 576 | $ | 6 | ||||||
_____________ | |||||||||||||
-1 | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||||||||||||
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 267 | $ | 201 | $ | 225 | |||||||
Additions related to current year | 16 | 60 | 28 | ||||||||||
Additions related to prior years positions | 10 | 39 | 5 | ||||||||||
Reductions related to prior years positions | (35 | ) | (19 | ) | (36 | ) | |||||||
Settlements with taxing authorities(1) | (10 | ) | — | (13 | ) | ||||||||
Reductions related to lapse of statute of limitations | (6 | ) | (14 | ) | (8 | ) | |||||||
Currency | (2 | ) | — | — | |||||||||
Balance at December 31 | $ | 240 | $ | 267 | $ | 201 | |||||||
_______________ | |||||||||||||
-1 | Majority of settlements did not result in the utilization of cash. | ||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Research and development | $ | 475 | $ | 647 | |||||||||
Post-retirement medical benefits | 341 | 310 | |||||||||||
Net operating losses | 531 | 597 | |||||||||||
Operating reserves, accruals and deferrals | 318 | 374 | |||||||||||
Tax credit carryforwards | 579 | 694 | |||||||||||
Deferred compensation | 286 | 268 | |||||||||||
Pension | 672 | 431 | |||||||||||
Other | 177 | 87 | |||||||||||
Subtotal | 3,379 | 3,408 | |||||||||||
Valuation allowance | (538 | ) | (614 | ) | |||||||||
Total | $ | 2,841 | $ | 2,794 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Unearned income and installment sales | $ | 883 | $ | 959 | |||||||||
Intangibles and goodwill | 1,161 | 1,253 | |||||||||||
Anticipated foreign repatriations | 50 | 55 | |||||||||||
Other | 154 | 53 | |||||||||||
Total | $ | 2,248 | $ | 2,320 | |||||||||
Total Deferred Taxes, Net | $ | 593 | $ | 474 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Treasury Stock by Class | The following provides cumulative information relating to our share repurchase programs from their inception in October 2005 through December 31, 2014 (shares in thousands): | ||||||||||||||||||||||||||||||||||||
Authorized share repurchase programs | $ | 8,000 | |||||||||||||||||||||||||||||||||||
Share repurchase cost | $ | 6,455 | |||||||||||||||||||||||||||||||||||
Share repurchase fees | $ | 10 | |||||||||||||||||||||||||||||||||||
Number of shares repurchased | 580,029 | ||||||||||||||||||||||||||||||||||||
Schedule of Common and Treasury Stock Changes | The following table reflects the changes in Common and Treasury stock shares (shares in thousands): | ||||||||||||||||||||||||||||||||||||
Common Stock Shares | Treasury Stock Shares | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 1,352,849 | 15,508 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 17,343 | — | |||||||||||||||||||||||||||||||||||
Contributions to U.S. pension plan(1) | 15,366 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 146,278 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | -146,862 | -146,862 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 1,238,696 | 14,924 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 28,731 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 65,179 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | (58,102 | ) | (58,102 | ) | |||||||||||||||||||||||||||||||||
Conversion of 2014 9% Notes | 996 | — | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 1,210,321 | 22,001 | |||||||||||||||||||||||||||||||||||
Stock based compensation plans, net | 13,965 | — | |||||||||||||||||||||||||||||||||||
Acquisition of Treasury stock | — | 86,536 | |||||||||||||||||||||||||||||||||||
Cancellation of Treasury stock | (100,928 | ) | (100,928 | ) | |||||||||||||||||||||||||||||||||
Conversion of 2014 9% Notes | 996 | — | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | 1,124,354 | 7,609 | |||||||||||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||||||
-1 | Refer to Note 16 - Employee Benefits Plans for additional information. | ||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense, Tax Effect | Stock-based compensation expense was as follows: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense, pre-tax | $ | 91 | $ | 90 | $ | 125 | |||||||||||||||||||||||||||||||
Income tax benefit recognized in earnings | 35 | 34 | 48 | ||||||||||||||||||||||||||||||||||
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Summary of Stock-based Compensation Activity | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(shares in thousands) | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 19,079 | $ | 9.62 | 30,414 | $ | 9.19 | 33,784 | $ | 8.7 | ||||||||||||||||||||||||||||
Granted | 926 | 12.3 | 610 | 9.09 | 13,033 | 7.82 | |||||||||||||||||||||||||||||||
Vested | (6,934 | ) | 10.33 | (9,992 | ) | 8.43 | (14,848 | ) | 6.89 | ||||||||||||||||||||||||||||
Cancelled | (874 | ) | 8.55 | (1,953 | ) | 8.77 | (1,555 | ) | 8.97 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 12,197 | 9.5 | 19,079 | 9.62 | 30,414 | 9.19 | |||||||||||||||||||||||||||||||
Performance Shares | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 8,058 | $ | 9.15 | 14,536 | $ | 8.74 | 9,763 | $ | 9.21 | ||||||||||||||||||||||||||||
Granted | 16,967 | 12.28 | 1,839 | 7.97 | 5,193 | 7.87 | |||||||||||||||||||||||||||||||
Vested | (2,404 | ) | 10.68 | (6,817 | ) | 8.03 | — | — | |||||||||||||||||||||||||||||
Cancelled | (1,900 | ) | 11.07 | (1,500 | ) | 8.82 | (420 | ) | 8.96 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 20,721 | 11.36 | 8,058 | 9.15 | 14,536 | 8.74 | |||||||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||||||||||||
Outstanding at January 1 | 14,199 | $ | 6.95 | 33,732 | $ | 6.86 | 50,070 | $ | 6.98 | ||||||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Canceled/expired | (215 | ) | 6.95 | (1,298 | ) | 6.53 | (8,617 | ) | 8.58 | ||||||||||||||||||||||||||||
Exercised | (7,869 | ) | 6.92 | (18,235 | ) | 6.82 | (7,721 | ) | 5.69 | ||||||||||||||||||||||||||||
Outstanding at December 31 | 6,115 | 7 | 14,199 | 6.95 | 33,732 | 6.86 | |||||||||||||||||||||||||||||||
Exercisable at December 31 | 6,115 | 7 | 12,164 | 7.06 | 28,676 | 6.95 | |||||||||||||||||||||||||||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2014 was as follows: | ||||||||||||||||||||||||||||||||||||
Awards | Unrecognized Compensation | Remaining Weighted-Average Vesting Period (Years) | |||||||||||||||||||||||||||||||||||
Restricted Stock Units | $ | 23 | 1.2 | ||||||||||||||||||||||||||||||||||
Performance Shares | 109 | 2.2 | |||||||||||||||||||||||||||||||||||
Total | $ | 132 | |||||||||||||||||||||||||||||||||||
Schedule of Aggregate intrinsic value restricted stock and performance shares compensation awards | The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows: | ||||||||||||||||||||||||||||||||||||
Awards | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||
Restricted Stock Units | $ | 169 | |||||||||||||||||||||||||||||||||||
Performance Shares | 287 | ||||||||||||||||||||||||||||||||||||
Schedule of Stock options outstanding and exercisable | Information related to stock options outstanding and exercisable at December 31, 2014 was as follows: | ||||||||||||||||||||||||||||||||||||
Options | |||||||||||||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||||||||||||
Aggregate intrinsic value | $ | 42 | $ | 42 | |||||||||||||||||||||||||||||||||
Weighted-average remaining contractual life (years) | 2.8 | 2.8 | |||||||||||||||||||||||||||||||||||
Schedule of Vested and exercised stock based awards total intrinsic value and tax benefit realized | The total intrinsic value and actual tax benefit realized for vested and exercised stock-based awards was as follows: | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Awards | Total Intrinsic Value | Cash Received | Tax Benefit | Total Intrinsic Value | Cash Received | Tax Benefit | Total Intrinsic Value | Cash Received | Tax Benefit | ||||||||||||||||||||||||||||
Restricted Stock Units | $ | 85 | $ | — | $ | 26 | $ | 91 | $ | — | $ | 30 | $ | 117 | $ | — | $ | 33 | |||||||||||||||||||
Performance Shares | 30 | — | 10 | 62 | — | 22 | — | — | — | ||||||||||||||||||||||||||||
Stock Options | 42 | 55 | 15 | 51 | 124 | 19 | 12 | 44 | 4 | ||||||||||||||||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other Comprehensive (Loss) Income is comprised of the following: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | ||||||||||||||||||||
Translation Adjustments (Losses) Gains | $ | (736 | ) | $ | (734 | ) | $ | (194 | ) | $ | (185 | ) | $ | 104 | $ | 113 | |||||||||
Unrealized (Losses) Gains: | |||||||||||||||||||||||||
Changes in fair value of cash flow hedges losses | (20 | ) | (10 | ) | (126 | ) | (89 | ) | (50 | ) | (35 | ) | |||||||||||||
Changes in cash flow hedges reclassed to earnings(1) | 36 | 26 | 123 | 86 | (37 | ) | (28 | ) | |||||||||||||||||
Other (losses) gains | (1 | ) | (1 | ) | 3 | 3 | — | — | |||||||||||||||||
Net Unrealized Gains (Losses) | 15 | 15 | — | — | (87 | ) | (63 | ) | |||||||||||||||||
Defined Benefit Plans (Losses) Gains | |||||||||||||||||||||||||
Net actuarial/prior service (losses) gains | (1,291 | ) | (861 | ) | 729 | 483 | (852 | ) | (578 | ) | |||||||||||||||
Prior service amortization(2) | (46 | ) | (29 | ) | (45 | ) | (29 | ) | (64 | ) | (39 | ) | |||||||||||||
Actuarial loss amortization(2) | 121 | 83 | 260 | 172 | 190 | 124 | |||||||||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | 40 | 40 | 23 | 23 | (13 | ) | (13 | ) | |||||||||||||||||
Other gains (losses)(4) | 106 | 105 | (17 | ) | (17 | ) | (55 | ) | (55 | ) | |||||||||||||||
Changes in Defined Benefit Plans (Losses) Gains | (1,070 | ) | (662 | ) | 950 | 632 | (794 | ) | (561 | ) | |||||||||||||||
Other Comprehensive (Loss) Income | (1,791 | ) | (1,381 | ) | 756 | 447 | (777 | ) | (511 | ) | |||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | |||||||||||||||
Other Comprehensive (Loss) Income Attributable to Xerox | $ | (1,790 | ) | $ | (1,380 | ) | $ | 757 | $ | 448 | $ | (777 | ) | $ | (511 | ) | |||||||||
_____________________________ | |||||||||||||||||||||||||
-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 Income (Loss) | AOCL is comprised of the following: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cumulative translation adjustments | $ | (1,743 | ) | $ | (1,010 | ) | $ | (826 | ) | ||||||||||||||||
Other unrealized losses, net | (22 | ) | (37 | ) | (37 | ) | |||||||||||||||||||
Benefit plans net actuarial losses and prior service credits(1) | (2,394 | ) | (1,732 | ) | (2,364 | ) | |||||||||||||||||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ | (4,159 | ) | $ | (2,779 | ) | $ | (3,227 | ) | ||||||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Includes our share of Fuji Xerox. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic Earnings per Share: | |||||||||||||
Net income from continuing operations attributable to Xerox | $ | 1,084 | $ | 1,139 | $ | 1,152 | |||||||
Accrued dividends on preferred stock | (24 | ) | (24 | ) | (24 | ) | |||||||
Net Income From Continuing Operations Available to Common Shareholders | $ | 1,060 | $ | 1,115 | $ | 1,128 | |||||||
Net (loss) income from discontinued operations attributable to Xerox | (115 | ) | 20 | 43 | |||||||||
Adjusted Net Income Available to Common Shareholders | $ | 945 | $ | 1,135 | $ | 1,171 | |||||||
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 | ||||||||||
Basic Earnings (Loss) per Share: | |||||||||||||
Continuing operations | $ | 0.92 | $ | 0.91 | $ | 0.87 | |||||||
Discontinued operations | (0.10 | ) | 0.02 | 0.03 | |||||||||
Basic Earnings per Share | $ | 0.82 | $ | 0.93 | $ | 0.9 | |||||||
Diluted Earnings per Share: | |||||||||||||
Net income from continuing operations attributable to Xerox | $ | 1,084 | $ | 1,139 | $ | 1,152 | |||||||
Accrued dividends on preferred stock | — | — | (24 | ) | |||||||||
Interest on Convertible Securities, net | — | 1 | 1 | ||||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | $ | 1,084 | $ | 1,140 | $ | 1,129 | |||||||
Net (loss) income from discontinued operations attributable to Xerox | (115 | ) | 20 | 43 | |||||||||
Adjusted Net Income Available to Common Shareholders | $ | 969 | $ | 1,160 | $ | 1,172 | |||||||
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 | ||||||||||
Common shares issuable with respect to: | |||||||||||||
Stock options | 2,976 | 5,401 | 4,335 | ||||||||||
Restricted stock and performance shares | 14,256 | 13,931 | 20,804 | ||||||||||
Convertible preferred stock | 26,966 | 26,966 | — | ||||||||||
Convertible securities | — | 1,743 | 1,992 | ||||||||||
Adjusted Weighted Average Common Shares Outstanding | 1,198,563 | 1,273,527 | 1,329,184 | ||||||||||
Diluted Earnings (Loss) per Share: | |||||||||||||
Continuing operations | $ | 0.9 | $ | 0.89 | $ | 0.85 | |||||||
Discontinued operations | (0.09 | ) | 0.02 | 0.03 | |||||||||
Diluted Earnings per Share | $ | 0.81 | $ | 0.91 | $ | 0.88 | |||||||
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 (shares in thousands): | |||||||||||||
Stock Options | 3,139 | 8,798 | 29,397 | ||||||||||
Restricted stock and performance shares | 17,987 | 12,411 | 23,430 | ||||||||||
Convertible preferred stock | — | — | 26,966 | ||||||||||
Total Anti-Dilutive Securities | 21,126 | 21,209 | 79,793 | ||||||||||
Dividends per Common Share | $ | 0.25 | $ | 0.23 | $ | 0.17 | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2014 | |||
Revenue, Net | $19,540 | [1] | $20,006 | [1] | $20,421 | [1] | |
Provisions for restructuring and asset impairments - continuing operations | 128 | 115 | 149 | ||||
Provisions for restructuring and asset impairments - discontinued operations | 2 | 7 | 4 | ||||
Provision for receivables | 53 | 123 | 127 | ||||
Provisions for litigation and regulatory matters | 11 | -34 | -1 | ||||
Provisions for obsolete and excess inventory | 26 | 35 | 30 | ||||
Provision for product warranty liability | 25 | 28 | 29 | ||||
Depreciation and obsolescence of equipment on operating leases | 297 | 283 | 279 | ||||
Depreciation of buildings and equipment (1) | 324 | 332 | 354 | ||||
Amortization of internal use software (1) | 139 | 137 | 114 | ||||
Amortization of product software | 62 | 43 | 19 | ||||
Amortization of acquired intangible assets (1) | 315 | 305 | 301 | ||||
Amortization of customer contract costs (1) | 128 | 100 | 92 | ||||
Defined pension benefits - net periodic benefit cost | 82 | 267 | 300 | ||||
Retiree health benefits - net periodic benefit cost | 3 | 1 | 11 | ||||
Income tax expense - continuing operations | 259 | 253 | 256 | ||||
Income tax expense - discontinued operations | 6 | [2] | 27 | [2] | 21 | [2] | |
Reclassification of unrecognized tax liabilities | 180 | ||||||
Customer-related deferred set-up transition and inducement costs | 80 | 107 | 109 | ||||
Deferred set-up costs, current | 323 | 399 | |||||
Sustaining engineering costs | 132 | 122 | 110 | ||||
Discontinued Operations [Member] | |||||||
Deferred set-up costs, current | 96 | ||||||
Continuing Operations [Member] | |||||||
Deferred set-up costs, current | 227 | ||||||
Weighted average life, services revenue, deferred set-up costs | 7 years | ||||||
Amortization expense, customer contract costs | $94 | ||||||
[1] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | ||||||
[2] | (1)Refer to Note 4 - Divestitures for additional information regarding discontinued operations. |
Segment_Reporting_Segment_Reve
Segment Reporting - Segment Revenue and Segment Profit (Loss) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
primaryreportablesegment | ||||||
Segment Reporting Information [Line Items] | ||||||
Reportable segments, number | 2 | |||||
Revenue | $19,153 | [1] | $19,523 | [1] | $19,824 | [1] |
Finance income | 387 | [1] | 483 | [1] | 597 | [1] |
Total Revenues | 19,540 | [1] | 20,006 | [1] | 20,421 | [1] |
Interest expense | 377 | [1],[2],[3] | 403 | [1],[2],[3] | 427 | [1],[2],[3] |
Segment profit (loss) | 1,833 | [1],[4] | 1,802 | [1],[4] | 1,902 | [1],[4] |
Equity in net income of unconsolidated affiliates | 160 | [1] | 169 | [1] | 152 | [1] |
Services Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 10,519 | [1] | 10,412 | [1] | 10,196 | [1] |
Finance income | 65 | [1] | 67 | [1] | 75 | [1] |
Total Revenues | 10,584 | 10,479 | 10,271 | |||
Interest expense | 18 | [1] | 19 | [1] | 19 | [1] |
Segment profit (loss) | 956 | [1],[4] | 1,055 | [1],[4] | 1,091 | [1],[4] |
Equity in net income of unconsolidated affiliates | 32 | [1] | 34 | [1] | 30 | [1] |
Document Technology Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 8,044 | [1] | 8,500 | [1] | 8,951 | [1] |
Finance income | 314 | [1] | 408 | [1] | 511 | [1] |
Total Revenues | 8,358 | [1] | 8,908 | [1] | 9,462 | [1] |
Interest expense | 121 | [1] | 140 | [1] | 172 | [1] |
Segment profit (loss) | 1,149 | [1],[4] | 964 | [1],[4] | 1,065 | [1],[4] |
Equity in net income of unconsolidated affiliates | 128 | [1] | 135 | [1] | 122 | [1] |
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 590 | [1] | 611 | [1] | 677 | [1] |
Finance income | 8 | [1] | 8 | [1] | 11 | [1] |
Total Revenues | 598 | [1] | 619 | [1] | 688 | [1] |
Interest expense | 238 | [1] | 244 | [1] | 236 | [1] |
Segment profit (loss) | -272 | [1],[4] | -217 | [1],[4] | -254 | [1],[4] |
Equity in net income of unconsolidated affiliates | $0 | [1] | $0 | [1] | $0 | [1] |
Outsourcing Offerings [Member] | Services Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Services segment description of offerings | 2 | |||||
[1] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||||
[2] | (3)Excludes interest on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||
[3] | (1)Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income. | |||||
[4] | Depreciation and amortization expense, which is recorded in Cost of Sales, Cost of Services, RD&E and SAG are included in segment profit above. This information is neither identified nor internally reported to our CODM. |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation Of Operating Profit (Loss) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciling items: | ||||||
Total Segment Profit | $1,833 | [1],[2] | $1,802 | [1],[2] | $1,902 | [1],[2] |
Amortization of intangible assets | -315 | -305 | -301 | |||
Equity in net income of unconsolidated affiliates | -160 | [2] | -169 | [2] | -152 | [2] |
Restructuring and related costs(1) | -149 | -115 | -149 | |||
Restructuring charges of Fuji Xerox | -3 | -9 | -16 | |||
Litigation matters | 0 | 37 | 0 | |||
Other | 0 | 2 | 0 | |||
Pre-tax Income | 1,206 | 1,243 | 1,284 | |||
Restructuring and asset impairment charges | 128 | 115 | 149 | |||
Business transformation costs | $21 | |||||
[1] | Depreciation and amortization expense, which is recorded in Cost of Sales, Cost of Services, RD&E and SAG are included in segment profit above. This information is neither identified nor internally reported to our CODM. | |||||
[2] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Segment_Reporting_Revenue_and_
Segment Reporting - Revenue and Long-lived Assets by Geography (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | $19,540 | [1] | $20,006 | [1] | $20,421 | [1] |
Long-Lived Assets | 2,630 | [2],[3] | 2,874 | [2] | 3,012 | [2] |
United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | 13,041 | 13,272 | 13,323 | |||
Long-Lived Assets | 1,758 | [2],[3] | 1,870 | [2] | 1,966 | [2] |
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | 4,428 | 4,414 | 4,599 | |||
Long-Lived Assets | 632 | [2],[3] | 761 | [2] | 784 | [2] |
Other areas | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | 2,071 | 2,320 | 2,499 | |||
Long-Lived Assets | 240 | [2],[3] | 243 | [2] | 262 | [2] |
ITO [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Long-lived assets held for sale | $241 | |||||
[1] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||||
[2] | Long-lived assets are comprised of (i)Â land, buildings and equipment, net, (ii)Â equipment on operating leases, net, (iii)Â internal use software, net and (iv)Â product software, net. | |||||
[3] | Long-lived assets at December 31, 2014 includes $241 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Acquisitions_Details
Acquisitions (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2014 | 31-May-14 | Dec. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2012 | Feb. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Consilience Software, Inc. [Member] | Consilience Software, Inc. [Member] | ISG Holdings, Inc. [Member] | ISG Holdings, Inc. [Member] | Invoco Holding GmbH [Member] | Invoco Holding GmbH [Member] | Invoco Holding GmbH [Member] | Zeno Office Solutions, Inc. [Member] | Zeno Office Solutions, Inc. [Member] | Impika [Member] | Impika [Member] | WDS [Member] | WDS [Member] | WDS [Member] | R.K. Dixon [Member] | R.K. Dixon [Member] | Prior year acquisitions [Member] | Prior year acquisitions [Member] | Acquisitions made current year minus two years [Member] | Acquisitions made current year minus two years [Member] | Acquisitions made current year minus two years [Member] | Document Technology [Member] | Document Technology [Member] | Document Technology [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Services Segment [Member] | Customer relationships [Member] | Trademarks [Member] | Non-compete agreements [Member] | Software [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Consilience Software, Inc. [Member] | ISG Holdings, Inc. [Member] | Invoco Holding GmbH [Member] | Zeno Office Solutions, Inc. [Member] | Impika [Member] | WDS [Member] | R.K. Dixon [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | USD ($) | USD ($) | USD ($) | USD ($) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||
businesses | businesses | businesses | businesses | ||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Date of acquisition | 30-Sep-14 | 31-May-14 | 31-Jan-14 | 31-Jan-14 | 1-Apr-13 | 28-Feb-13 | 31-Jul-12 | 31-Jul-12 | 28-Feb-12 | ||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $340,000,000 | $155,000,000 | $276,000,000 | $25,000,000 | $225,000,000 | $54,000,000 | € 40,000,000 | $59,000,000 | $53,000,000 | $95,000,000 | £ 60,000,000 | $58,000,000 | $34,000,000 | $12,000,000 | $62,000,000 | $2,000,000 | $31,000,000 | $61,000,000 | |||||||||||||||||||||||
Number of Businesses Acquired (in businesses) | 2 | 1 | 3 | 1 | 3 | 4 | |||||||||||||||||||||||||||||||||||
Revenue of Acquiree since Acquisition Date, Actual | 132,000,000 | 84,000,000 | 56,000,000 | 275,000,000 | 277,000,000 | 162,000,000 | |||||||||||||||||||||||||||||||||||
Goodwill, Expected Tax Deductible Amount | 0.5 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset | 13 years | 11 years | 4 years | 7 years | |||||||||||||||||||||||||||||||||||||
Accounts/finance receivables | 33,000,000 | ||||||||||||||||||||||||||||||||||||||||
Intangible assets | 71,000,000 | 6,000,000 | 3,000,000 | 25,000,000 | |||||||||||||||||||||||||||||||||||||
Goodwill | 249,000,000 | 23,000,000 | 166,000,000 | 39,000,000 | 44,000,000 | 43,000,000 | 69,000,000 | 30,000,000 | 23,000,000 | 166,000,000 | 39,000,000 | 0 | 0 | 69,000,000 | 0 | ||||||||||||||||||||||||||
Other assets | 26,000,000 | ||||||||||||||||||||||||||||||||||||||||
Total Assets Acquired | 413,000,000 | ||||||||||||||||||||||||||||||||||||||||
Liabilities assumed | 73,000,000 | ||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 33,000,000 | ||||||||||||||||||||||||||||||||||||||||
Contingent consideration accrued at acquisition date | $25,000,000 |
Divestitures_Details
Divestitures (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | 31-May-14 | |||||
Employees | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of businesses | $26 | $26 | $0 | |||||||||
Capital lease obligations and pension liabilities | -31 | [1] | 0 | [1] | -31 | [1] | -31 | [1] | ||||
Income (loss) on disposal | -182 | -25 | 0 | |||||||||
Revenue | 1,365 | 1,832 | 1,969 | |||||||||
Income (loss) from operations | 73 | 72 | 64 | |||||||||
Net (Loss) Income Before Income Taxes | -109 | 47 | 64 | |||||||||
Income tax expense - discontinued operations | -6 | [2] | -27 | [2] | -21 | [2] | ||||||
(Loss) income from discontinued operations, net of tax | -115 | 20 | 43 | |||||||||
Other current assets | -146 | [3] | 0 | [3] | -146 | [3] | -146 | [3] | ||||
Land, buildings and equipment, net | -220 | [4] | 0 | [4] | -220 | [4] | -220 | [4] | ||||
Goodwill | -495 | -495 | -495 | |||||||||
Total Assets of Discontinued Operations | 1,260 | 0 | 1,260 | 1,260 | ||||||||
Other current liabilities | -112 | [3] | 0 | [3] | -112 | [3] | -112 | [3] | ||||
Long-term debt | -54 | [3] | 0 | [3] | -54 | [3] | -54 | [3] | ||||
ITO [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Discontinued operations, held for sale classification date | 31-Dec-14 | |||||||||||
Proceeds from sale of businesses | 1,050 | |||||||||||
Capital lease obligations and pension liabilities | 100 | 100 | 100 | |||||||||
Amounts of Material Contingent Liabilities Remaining | 50 | 50 | 50 | |||||||||
discontinue operations net after tax proceeds | 850 | |||||||||||
Discontinued Operations Restructuring, Number of Employees | 9,800 | |||||||||||
Income (loss) on disposal | -181 | 0 | 0 | -181 | ||||||||
Additional Tax Expense | 75 | |||||||||||
Revenue | 1,320 | 1,335 | 1,213 | |||||||||
Income (loss) from operations | 74 | 70 | 47 | |||||||||
Net (Loss) Income Before Income Taxes | -107 | 70 | 47 | |||||||||
Income tax expense - discontinued operations | -5 | -24 | -16 | |||||||||
(Loss) income from discontinued operations, net of tax | -112 | 46 | 31 | |||||||||
Accounts receivable, net | 213 | 213 | 213 | |||||||||
Other current assets | 146 | 146 | 146 | |||||||||
Land, buildings and equipment, net | 220 | 220 | 220 | |||||||||
Intangible assets, net | 197 | 197 | 197 | |||||||||
Goodwill | 337 | 337 | 337 | |||||||||
Other long-term assets | 147 | 147 | 147 | |||||||||
Total Assets of Discontinued Operations | 1,260 | 1,260 | 1,260 | |||||||||
Current portion of long-term debt | 31 | 31 | 31 | |||||||||
Accounts payable | 32 | 32 | 32 | |||||||||
Accrued pension and benefit costs | 9 | 9 | 9 | |||||||||
Unearned income | 64 | 64 | 64 | |||||||||
Other current liabilities | 112 | 112 | 112 | |||||||||
Long-term debt | 44 | 44 | 44 | |||||||||
Pension and other benefit liabilities | 25 | 25 | 25 | |||||||||
Other long-term liabilities | 54 | 54 | 54 | |||||||||
Total Liabilities of Discontinued Operations | 371 | 371 | 371 | |||||||||
Depreciation of buildings and equipment | 98 | 99 | 98 | |||||||||
Amortization of internal use software | 9 | 10 | 2 | |||||||||
Amortization of acquired intangible assets | 27 | 27 | 27 | |||||||||
Amortization of customer contract costs | 26 | 22 | 15 | |||||||||
Operating lease rent expense | 258 | 241 | 185 | |||||||||
Defined contribution plans | 8 | 7 | 2 | |||||||||
Interest expense | 4 | [5] | 3 | [5] | 3 | [5] | ||||||
Cost of additions to land, buildings, and equipment | 105 | 99 | 140 | |||||||||
Cost of additions to internal use software | 2 | 4 | 15 | |||||||||
Customer-related deferred set-up transition and inducement costs | 26 | 35 | 60 | |||||||||
Xerox Audio Visual Solutions, Inc. [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Income (loss) on disposal | -1 | |||||||||||
Truckload Management Services [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of businesses | 15 | |||||||||||
Income (loss) on disposal | -1 | |||||||||||
Disposal Date | 1-May-14 | |||||||||||
Paper business [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Income (loss) on disposal | 1 | -25 | ||||||||||
All Other Discontinued Operations [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Income (loss) on disposal | -1 | -25 | 0 | |||||||||
Revenue | 45 | 497 | 756 | |||||||||
Income (loss) from operations | -1 | 2 | 17 | |||||||||
Net (Loss) Income Before Income Taxes | -2 | -23 | 17 | |||||||||
Income tax expense - discontinued operations | -1 | -3 | -5 | |||||||||
(Loss) income from discontinued operations, net of tax | ($3) | ($26) | $12 | |||||||||
[1] | (1)Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||
[2] | (1)Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | |||||||||||
[3] | (1)Represents assets and liabilities related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||
[4] | (1)Represents net fixed assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||||||||
[5] | Interest expense is related to capital lease obligations, which are expected to be assumed by purchaser of the ITO business. |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Amounts billed or billable | $110 | $113 | ||||
Unbilled amounts | 1,425 | 1,500 | ||||
Subtotal | 2,865 | 2,929 | ||||
Accounts Receivable, Net | 2,652 | 2,929 | ||||
Billable contracts receivable to be invoiced in the subsequent month | 997 | 1,054 | ||||
Deferred Proceeds Receivable From Sales Of Accounts Receivable | 73 | 121 | ||||
Accounts receivable sold, derecognized and uncollected at balance sheet date | 580 | 723 | ||||
Accounts receivable sales | 2,906 | 3,401 | 3,699 | |||
Deferred proceeds | 387 | 486 | 639 | |||
Loss on sale of accounts receivable | 15 | 17 | 21 | |||
Estimated decrease to operating cash flows | -68 | [1] | -55 | [1] | -78 | [1] |
Accounts Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Amounts billed or billable | 2,634 | 2,651 | ||||
Unbilled amounts | 319 | 390 | ||||
Allowance for doubtful accounts | -88 | -112 | ||||
Discontinued operations | -213 | [2] | 0 | [2] | ||
ITO [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Billable contracts receivable to be invoiced in the subsequent month | $52 | |||||
[1] | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i)Â the deferred proceeds, (ii)Â collections prior to the end of the year and (iii)Â currency. | |||||
[2] | (1)Represents net accounts receivable related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Finance_Receivables_Net_Detail
Finance Receivables, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Receivables [Abstract] | |||
Gross receivables | $5,009 | $5,349 | |
Unearned income | -624 | -666 | |
Subtotal | 4,385 | 4,683 | |
Residual values | 0 | 1 | |
Allowance for doubtful accounts | -131 | -154 | -170 |
Finance Receivables, Net | 4,254 | 4,530 | |
Less: Billed portion of finance receivables, net | 110 | 113 | |
Less: Current portion of finance receivables not billed, net | 1,425 | 1,500 | |
Finance Receivables Due After One Year, Net | 2,719 | 2,917 | |
Billed Contracts Receivable | 117 | ||
Finance receivables contractual maturity, current | 1,883 | ||
Finance receivables contractual maturity, in two years | 1,382 | ||
Finance receivables contractual maturities, in three years | 958 | ||
Finance receivables contractual maturities, in four years | 558 | ||
Finance receivables contractual maturities, in five years | 205 | ||
Finance receivables contractual maturities, thereafter | 23 | ||
Total contractual maturities | $5,009 | $5,349 |
Finance_Receivables_Net_Sales_
Finance Receivables, Net - Sales of Finance Receivables (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Collections on beneficial interest | $79 | $58 | $0 | |||
Estimated (Decrease) Increase to Operating Cash Flows | -68 | [1] | -55 | [1] | -78 | [1] |
Document Technology [Member] | ||||||
Beneficial interests received | 77 | 150 | ||||
Finance Receivable Beneficial Interest Weighted Average Life | 2 years | |||||
Document Technology [Member] | Other Current Assets [Member] | ||||||
Beneficial interest from sale of finance receivables held by bankruptcy remote subsidiaries | 64 | 124 | ||||
Finance Receivables [Member] | ||||||
Net carrying value (NCV) sold | 0 | 676 | 682 | |||
Allowance included in NCV | 0 | 17 | 18 | |||
Cash proceeds received | 0 | 635 | 630 | |||
Beneficial interests received | 0 | 86 | 101 | |||
Pre-tax gain on sales | 0 | 40 | 44 | |||
Net fees and expenses | 0 | 5 | 5 | |||
Finance Receivables Sold and Derecognized | 549 | 1,006 | ||||
Finance receivables sold and derecognized sales value | 596 | 1,098 | ||||
Net cash received from sales of finance receivables net of beneficial interest, fees and expenses | 0 | [2] | 631 | [2] | 625 | [2] |
Impact from prior sales of finance receivables | -527 | [3] | -392 | [3] | -45 | [3] |
Collections on beneficial interest | 94 | 58 | 0 | |||
Estimated (Decrease) Increase to Operating Cash Flows | ($433) | $297 | $580 | |||
[1] | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i)Â the deferred proceeds, (ii)Â collections prior to the end of the year and (iii)Â currency. | |||||
[2] | (1)Net of beneficial interest, fees and expenses. | |||||
[3] | (2)Represents cash that would have been collected if we had not sold finance receivables. |
Finance_Receivables_Net_Allowa
Finance Receivables, Net - Allowance for Credit Losses (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Finance receivables lease portfolio -low - years | 2 years | |||||
Finance lease portfolio average maturity - high - years | 3 years | |||||
Financing Receivable, Allowance for Credit Losses | $131 | $154 | $170 | |||
Provision | 33 | 81 | ||||
Charge-offs | -51 | -86 | ||||
Recoveries and other | -5 | [1] | 6 | [1] | ||
Sale of finance receivables | -17 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 4,385 | [2] | 4,683 | [2] | ||
Residual values not included in the impairment evaluation | 0 | 1 | ||||
Allowance for credit losses not included in the impairment evaluation | 131 | 154 | ||||
United States | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 41 | 45 | 50 | |||
Provision | 0 | 13 | ||||
Charge-offs | -5 | -8 | ||||
Recoveries and other | 1 | [1] | 2 | [1] | ||
Sale of finance receivables | -12 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 1,728 | [2] | 1,666 | [2] | ||
Canada | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 20 | 22 | 31 | |||
Provision | 9 | 11 | ||||
Charge-offs | -14 | -16 | ||||
Recoveries and other | 3 | [1] | 1 | [1] | ||
Sale of finance receivables | -5 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 424 | [2] | 421 | [2] | ||
Europe | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 58 | 81 | 85 | |||
Provision | 15 | 53 | ||||
Charge-offs | -29 | -60 | ||||
Recoveries and other | -9 | [1] | 3 | [1] | ||
Sale of finance receivables | 0 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 1,835 | [2] | 2,292 | [2] | ||
Other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 12 | [3] | 6 | [3] | 4 | [3] |
Provision | 9 | [3] | 4 | [3] | ||
Charge-offs | -3 | [3] | -2 | [3] | ||
Recoveries and other | 0 | [1],[3] | 0 | [1],[3] | ||
Sale of finance receivables | 0 | |||||
Financing Receivable, Collectively Evaluated for Impairment | $398 | [2],[3] | $304 | [2],[3] | ||
[1] | (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. | |||||
[2] | (2)Total Finance receivables exclude residual values of $0 and $1 and the allowance for credit losses of $131 and $154 at December 31, 2014 and 2013, respectively. | |||||
[3] | (3)Includes developing market countries and smaller units. |
Finance_Receivables_Net_Financ
Finance Receivables, Net - Finance Receivables Credit Quality Indicators (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | $4,385 | $4,683 | ||
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 | 4.00% | |||
Loss Rates Of Customers With Substandard Doubtful Credit Quality | 10.00% | |||
Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 2,427 | 2,600 | ||
Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 1,449 | 1,530 | ||
Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 509 | 553 | ||
United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 1,728 | 1,666 | ||
United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 1,163 | 1,208 | ||
United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 356 | 253 | ||
United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 209 | 205 | ||
Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 424 | [1] | 421 | [1] |
Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 246 | [1] | 250 | [1] |
Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 120 | [1] | 100 | [1] |
Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 58 | [1] | 71 | [1] |
Total Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 1,835 | 2,292 | ||
Total Europe | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 823 | 916 | ||
Total Europe | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 810 | 1,108 | ||
Total Europe | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 202 | 268 | ||
France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 616 | 718 | ||
France | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 253 | 282 | ||
France | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 234 | 314 | ||
France | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 129 | 122 | ||
UK Ireland | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 362 | 412 | ||
UK Ireland | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 255 | 199 | ||
UK Ireland | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 101 | 171 | ||
UK Ireland | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 6 | 42 | ||
Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 538 | [2],[3] | 724 | [2] |
Central | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 230 | [2] | 287 | [2] |
Central | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 278 | [2] | 394 | [2] |
Central | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 30 | [2] | 43 | [2] |
Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 244 | [4] | 347 | [4] |
Southern | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 60 | [4] | 102 | [4] |
Southern | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 148 | [4] | 187 | [4] |
Southern | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 36 | [4] | 58 | [4] |
Nordic | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 75 | [5] | 91 | [5] |
Nordic | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 25 | [5] | 46 | [5] |
Nordic | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 49 | [5] | 42 | [5] |
Nordic | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 1 | [5] | 3 | [5] |
Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 398 | 304 | ||
Other | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 195 | 226 | ||
Other | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 163 | 69 | ||
Other | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 40 | 9 | ||
Finance and other services [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 409 | 325 | ||
Finance and other services [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 195 | 189 | ||
Finance and other services [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 159 | 102 | ||
Finance and other services [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 55 | 34 | ||
Finance and other services [Member] | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 97 | [1] | 75 | [1] |
Finance and other services [Member] | Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 54 | [1] | 46 | [1] |
Finance and other services [Member] | Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 31 | [1] | 18 | [1] |
Finance and other services [Member] | Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 12 | [1] | 11 | [1] |
Government and education [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 605 | 671 | ||
Government and education [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 589 | 656 | ||
Government and education [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 13 | 12 | ||
Government and education [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 3 | 3 | ||
Government and education [Member] | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 86 | 106 | ||
Government and education [Member] | Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 76 | 96 | ||
Government and education [Member] | Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 8 | 9 | ||
Government and education [Member] | Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 2 | 1 | ||
Graphic arts [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 317 | 309 | ||
Graphic arts [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 148 | 142 | ||
Graphic arts [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 79 | 59 | ||
Graphic arts [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 90 | 108 | ||
Graphic arts [Member] | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 143 | [1] | 156 | [1] |
Graphic arts [Member] | Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 58 | [1] | 56 | [1] |
Graphic arts [Member] | Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 49 | [1] | 52 | [1] |
Graphic arts [Member] | Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 36 | [1] | 48 | [1] |
Industrial [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 151 | 135 | ||
Industrial [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 92 | 92 | ||
Industrial [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 41 | 28 | ||
Industrial [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 18 | 15 | ||
Industrial [Member] | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 41 | 41 | ||
Industrial [Member] | Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 24 | 23 | ||
Industrial [Member] | Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 13 | 12 | ||
Industrial [Member] | Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 4 | 6 | ||
Healthcare [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 124 | 115 | ||
Healthcare [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 84 | 74 | ||
Healthcare [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 26 | 25 | ||
Healthcare [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 14 | 16 | ||
Other [Member] | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 122 | 111 | ||
Other [Member] | United States | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 55 | 55 | ||
Other [Member] | United States | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 38 | 27 | ||
Other [Member] | United States | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 29 | 29 | ||
Other [Member] | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 57 | 43 | ||
Other [Member] | Canada | Investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 34 | 29 | ||
Other [Member] | Canada | Non-investment Grade [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | 19 | 9 | ||
Other [Member] | Canada | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Finance Receivables | $4 | $5 | ||
[1] | (1)Historically, the Company had included certain Canadian customers with graphic arts activity in their industry sector. In 2014, these customers were reclassified to Graphic Arts to better reflect their primary business activity. The December 31, 2013 amounts have been revised to reclassify $33 from Finance and Other Services and $38 from Industrial to Graphic Arts to be consistent with the 2014 presentation. | |||
[2] | (2)Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | (1)Switzerland, Germany, Austria, Belgium and Holland. | |||
[4] | (2)Italy, Greece, Spain and Portugal. | |||
[5] | 3)Sweden, Norway, Denmark and Finland. |
Finance_Receivables_Net_Financ1
Finance Receivables, Net - Finance Receivables Aging Schedule (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | $110 | $113 | ||
Unbilled | 4,254 | 4,530 | ||
Total Finance Receivables | 4,385 | 4,683 | ||
Greater Than 90 Days and Accruing | 151 | 194 | ||
Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 83 | 84 | ||
31 To 90 Days Past Due | 20 | 22 | ||
Greater Than 90 Days Past Due | 14 | 18 | ||
Total Billed | 117 | 124 | ||
Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 4,268 | 4,559 | ||
United States | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1,728 | 1,666 | ||
Greater Than 90 Days and Accruing | 64 | 65 | ||
United States | Finance and other services [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 409 | 325 | ||
Greater Than 90 Days and Accruing | 13 | 12 | ||
United States | Government and education [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 605 | 671 | ||
Greater Than 90 Days and Accruing | 25 | 34 | ||
United States | Graphic arts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 317 | 309 | ||
Greater Than 90 Days and Accruing | 6 | 5 | ||
United States | Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 151 | 135 | ||
Greater Than 90 Days and Accruing | 9 | 6 | ||
United States | Healthcare [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 124 | 115 | ||
Greater Than 90 Days and Accruing | 5 | 5 | ||
United States | Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 122 | 111 | ||
Greater Than 90 Days and Accruing | 6 | 3 | ||
United States | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 43 | 45 | ||
31 To 90 Days Past Due | 10 | 10 | ||
Greater Than 90 Days Past Due | 6 | 5 | ||
Total Billed | 59 | 60 | ||
United States | Billed Revenues [Member] | Finance and other services [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 7 | 7 | ||
31 To 90 Days Past Due | 2 | 2 | ||
Greater Than 90 Days Past Due | 1 | 1 | ||
Total Billed | 10 | 10 | ||
United States | Billed Revenues [Member] | Government and education [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 14 | 17 | ||
31 To 90 Days Past Due | 4 | 4 | ||
Greater Than 90 Days Past Due | 3 | 3 | ||
Total Billed | 21 | 24 | ||
United States | Billed Revenues [Member] | Graphic arts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 12 | 12 | ||
31 To 90 Days Past Due | 1 | 1 | ||
Greater Than 90 Days Past Due | 1 | 0 | ||
Total Billed | 14 | 13 | ||
United States | Billed Revenues [Member] | Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 4 | 3 | ||
31 To 90 Days Past Due | 1 | 1 | ||
Greater Than 90 Days Past Due | 1 | 1 | ||
Total Billed | 6 | 5 | ||
United States | Billed Revenues [Member] | Healthcare [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 3 | 3 | ||
31 To 90 Days Past Due | 1 | 1 | ||
Greater Than 90 Days Past Due | 0 | 0 | ||
Total Billed | 4 | 4 | ||
United States | Billed Revenues [Member] | Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 3 | 3 | ||
31 To 90 Days Past Due | 1 | 1 | ||
Greater Than 90 Days Past Due | 0 | 0 | ||
Total Billed | 4 | 4 | ||
United States | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 1,669 | 1,606 | ||
United States | Unbilled Revenues [Member] | Finance and other services [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 399 | 315 | ||
United States | Unbilled Revenues [Member] | Government and education [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 584 | 647 | ||
United States | Unbilled Revenues [Member] | Graphic arts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 303 | 296 | ||
United States | Unbilled Revenues [Member] | Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 145 | 130 | ||
United States | Unbilled Revenues [Member] | Healthcare [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 120 | 111 | ||
United States | Unbilled Revenues [Member] | Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 118 | 107 | ||
Canada | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 424 | [1] | 421 | [1] |
Greater Than 90 Days and Accruing | 17 | 19 | ||
Canada | Finance and other services [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 97 | [1] | 75 | [1] |
Canada | Government and education [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 86 | 106 | ||
Canada | Graphic arts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 143 | [1] | 156 | [1] |
Canada | Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 41 | 41 | ||
Canada | Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 57 | 43 | ||
Canada | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 9 | 4 | ||
31 To 90 Days Past Due | 2 | 3 | ||
Greater Than 90 Days Past Due | 1 | 3 | ||
Total Billed | 12 | 10 | ||
Canada | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 412 | 411 | ||
Total Europe | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1,835 | 2,292 | ||
Greater Than 90 Days and Accruing | 70 | 110 | ||
Total Europe | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 18 | 27 | ||
31 To 90 Days Past Due | 7 | 8 | ||
Greater Than 90 Days Past Due | 7 | 10 | ||
Total Billed | 32 | 45 | ||
Total Europe | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 1,803 | 2,247 | ||
France | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 616 | 718 | ||
Greater Than 90 Days and Accruing | 35 | 40 | ||
France | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 0 | 0 | ||
31 To 90 Days Past Due | 1 | 0 | ||
Greater Than 90 Days Past Due | 2 | 0 | ||
Total Billed | 3 | 0 | ||
France | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 613 | 718 | ||
UK Ireland | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 362 | 412 | ||
Greater Than 90 Days and Accruing | 1 | 2 | ||
UK Ireland | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1 | 1 | ||
31 To 90 Days Past Due | 0 | 1 | ||
Greater Than 90 Days Past Due | 0 | 0 | ||
Total Billed | 1 | 2 | ||
UK Ireland | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 361 | 410 | ||
Central | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 538 | [2],[3] | 724 | [3] |
Greater Than 90 Days and Accruing | 15 | [2] | 23 | [2] |
Central | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 2 | [2] | 3 | [2] |
31 To 90 Days Past Due | 2 | [2] | 2 | [2] |
Greater Than 90 Days Past Due | 1 | [2] | 3 | [2] |
Total Billed | 5 | [2] | 8 | [3] |
Central | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 533 | [2] | 716 | [2] |
Southern | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 244 | [4] | 347 | [4] |
Greater Than 90 Days and Accruing | 17 | [4] | 45 | [4] |
Southern | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 14 | [4] | 21 | [4] |
31 To 90 Days Past Due | 4 | [4] | 5 | [4] |
Greater Than 90 Days Past Due | 4 | [4] | 7 | [4] |
Total Billed | 22 | [4] | 33 | [4] |
Southern | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 222 | [4] | 314 | [4] |
Nordic | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 75 | [5] | 91 | [5] |
Greater Than 90 Days and Accruing | 2 | [5] | 0 | [5] |
Nordic | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1 | [5] | 2 | [5] |
31 To 90 Days Past Due | 0 | [5] | 0 | [5] |
Greater Than 90 Days Past Due | 0 | [5] | 0 | [5] |
Total Billed | 1 | [5] | 2 | [5] |
Nordic | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 74 | [5] | 89 | [5] |
Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 398 | 304 | ||
Greater Than 90 Days and Accruing | 0 | 0 | ||
Other | Billed Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 13 | 8 | ||
31 To 90 Days Past Due | 1 | 1 | ||
Greater Than 90 Days Past Due | 0 | 0 | ||
Total Billed | 14 | 9 | ||
Other | Unbilled Revenues [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | $384 | $295 | ||
[1] | (1)Historically, the Company had included certain Canadian customers with graphic arts activity in their industry sector. In 2014, these customers were reclassified to Graphic Arts to better reflect their primary business activity. The December 31, 2013 amounts have been revised to reclassify $33 from Finance and Other Services and $38 from Industrial to Graphic Arts to be consistent with the 2014 presentation. | |||
[2] | (1)Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | (2)Switzerland, Germany, Austria, Belgium and Holland. | |||
[4] | (2)Italy, Greece, Spain and Portugal. | |||
[5] | 3)Sweden, Norway, Denmark and Finland. |
Inventories_and_Equipment_on_O2
Inventories and Equipment on Operating Leases, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories, net [Abstract] | |||
Finished goods | $778 | $837 | |
Work-in-process | 58 | 60 | |
Raw materials | 98 | 101 | |
Total Inventories | 934 | 998 | |
Inventories and Equipment on Operating Lease, Net [Abstract] | |||
Equipment on operating leases | 1,531 | 1,575 | |
Accumulated depreciation | -1,006 | -1,016 | |
Equipment on Operating Leases, Net | 525 | 559 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating Leases, Income Statement, Contingent Revenue | 149 | 151 | 158 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
Operating Leases, Future Minimum Payments Receivable, Current | 339 | ||
Operating Leases, Future Minimum Payments Receivable, in Two Years | 246 | ||
Operating Leases, Future Minimum Payments Receivable, in Three Years | 155 | ||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 82 | ||
Operating Leases, Future Minimum Payments Receivable, in Five Years | 34 | ||
Operating Leases, Future Minimum Payments Receivable, Thereafter | $5 | ||
Minimum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Property, plant and equipment depreciable lives | 3 years | ||
Equipment on operating lease length of lease (years) | 1 year | ||
Maximum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Property, plant and equipment depreciable lives | 4 years | ||
Equipment on operating lease length of lease (years) | 3 years |
Land_Buildings_Equipment_and_S2
Land, Buildings, Equipment and Software, Net (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 5,041 | $5,087 | ||
Accumulated depreciation | -3,698 | -3,621 | ||
Discontinued operations | -220 | [1] | 0 | [1] |
Land, Buildings and Equipment, Net | 1,123 | 1,466 | ||
Land [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 46 | 50 | ||
Building and building equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 1,038 | 1,086 | ||
Leasehold Improvements [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 486 | 483 | ||
Plant machinery [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 1,375 | 1,493 | ||
Office furniture and equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 1,938 | 1,826 | ||
Other [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 78 | 83 | ||
Construction in progress [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Land, buildings and equipment, gross | 80 | $66 | ||
Minimum [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum [Member] | Building and building equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Minimum [Member] | Plant machinery [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Minimum [Member] | Office furniture and equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum [Member] | Other [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 4 years | |||
Maximum [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 4 years | |||
Maximum [Member] | Building and building equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 50 years | |||
Maximum [Member] | Plant machinery [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 12 years | |||
Maximum [Member] | Office furniture and equipment [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Maximum [Member] | Other [Member] | ||||
Property, Plant, Equipment and Software [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
[1] | (1)Represents net fixed assets related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Land_Buildings_Equipment_and_S3
Land, Buildings, Equipment and Software, Net - Depreciation Expense, Operating Lease Rent Expense, Minimum Operating Lease Commitments (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation expense (1) | $324 | $332 | $354 | |||
Operating lease rent expense | 560 | [1] | 513 | [1] | 461 | [1] |
Capital Leased Assets, Gross | 180 | 150 | ||||
ITO [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Capital Leased Assets, Gross | 75 | |||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
Operating Leases, Future Minimum Payments Due, Current | 117 | |||||
Operating Leases, Future Minimum Payments, Due in Two Years | 43 | |||||
Operating Leases, Future Minimum Payments, Due in Three Years | 18 | |||||
Operating Leases, Future Minimum Payments, Due in Four Years | 8 | |||||
Operating Leases, Future Minimum Payments, Due in Five Years | 6 | |||||
Operating Leases, Future Minimum Payments, Due Thereafter | 0 | |||||
Continuing Operations [Member] | ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
Operating Leases, Future Minimum Payments Due, Current | 469 | |||||
Operating Leases, Future Minimum Payments, Due in Two Years | 347 | |||||
Operating Leases, Future Minimum Payments, Due in Three Years | 170 | |||||
Operating Leases, Future Minimum Payments, Due in Four Years | 104 | |||||
Operating Leases, Future Minimum Payments, Due in Five Years | 79 | |||||
Operating Leases, Future Minimum Payments, Due Thereafter | 57 | |||||
Including discontinued operations [Member] | ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
Operating Leases, Future Minimum Payments Due, Current | 586 | |||||
Operating Leases, Future Minimum Payments, Due in Two Years | 390 | |||||
Operating Leases, Future Minimum Payments, Due in Three Years | 188 | |||||
Operating Leases, Future Minimum Payments, Due in Four Years | 112 | |||||
Operating Leases, Future Minimum Payments, Due in Five Years | 85 | |||||
Operating Leases, Future Minimum Payments, Due Thereafter | $57 | |||||
[1] | (1)Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Land_Buildings_Equipment_and_S4
Land, Buildings, Equipment and Software, Net - Internal Use Software (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Property, Plant, Equipment and Software [Line Items] | ||||||
Internal use software (1) | $82 | [1] | $77 | [1] | $110 | [1] |
Product software | 23 | 28 | 107 | |||
Internal use software (1) | 454 | [2] | 506 | [2] | ||
Product software | 307 | 343 | ||||
Internal Use and Product Software, Useful Lives Minimum | 3 years | |||||
Internal Use and Product Software, Useful Lives Maximum | 10 years | |||||
Government services [Member] | ||||||
Property, Plant, Equipment and Software [Line Items] | ||||||
Internal use software (1) | 250 | |||||
ITO [Member] | ||||||
Property, Plant, Equipment and Software [Line Items] | ||||||
Internal use software (1) | $20 | |||||
[1] | (1)Excludes amounts related to our ITO business which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||
[2] | (1)Internal use software at December 31, 2014 includes $20 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Investment_in_Affiliates_at_Eq2
Investment in Affiliates, at Equity (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Affiliates, at Equity | $1,338 | $1,285 | ||||
Total Equity in Net Income of Unconsolidated Affiliates | 160 | [1] | 169 | [1] | 152 | [1] |
Equity Method Investment, Ownership Percentage | 25.00% | |||||
Implied Investment in Affiliates - Fuji Xerox | 1,367 | |||||
Fuji Xerox [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Affiliates, at Equity | 1,275 | 1,224 | ||||
Total Equity in Net Income of Unconsolidated Affiliates | 147 | 156 | 139 | |||
Other [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Affiliates, at Equity | 63 | 61 | ||||
Total Equity in Net Income of Unconsolidated Affiliates | $13 | $13 | $13 | |||
[1] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Investment_in_Affiliates_at_Eq3
Investment in Affiliates, at Equity - Condensed Financial Data for Fuji Xerox Unconsolidated Affiliate (Details) (Fuji Xerox [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fuji Xerox [Member] | |||
Summary of Operations | |||
Revenues | $11,112 | $11,415 | $12,633 |
Costs and expenses | 10,242 | 10,479 | 11,783 |
Income before income taxes | 870 | 936 | 850 |
Income tax expense | 262 | 276 | 279 |
Net Income | 608 | 660 | 571 |
Less: Net income - noncontrolling interests | 4 | 5 | 6 |
Net Income - Fuji Xerox | 604 | 655 | 565 |
Assets: | |||
Current assets | 4,801 | 4,955 | 5,154 |
Long-term assets | 4,742 | 5,160 | 6,158 |
Total Assets | 9,543 | 10,115 | 11,312 |
Liabilities and Equity: | |||
Current liabilities | 2,982 | 3,114 | 3,465 |
Long-term debt | 580 | 978 | 1,185 |
Other long-term liabilities | 482 | 680 | 917 |
Noncontrolling interests | 30 | 28 | 27 |
Fuji Xerox shareholders' equity | 5,469 | 5,315 | 5,718 |
Total Liabilities and Equity | $9,543 | $10,115 | $11,312 |
Investment_in_Affiliates_at_Eq4
Investment in Affiliates, at Equity - Investment in Affiliate Exchange Rates (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Summary of operations, weighted average rate | 105.58 | 97.52 | 79.89 |
Balance sheet, year-end rate | 119.46 | 105.15 | 86.01 |
Investment_in_Affiliates_at_Eq5
Investment in Affiliates, at Equity - Other Transactions with Fuji Xerox (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Dividends received from Fuji Xerox | $58 | $60 | $52 |
Royalty revenue earned | 115 | 118 | 132 |
Inventory purchases from Fuji Xerox | 1,831 | 1,903 | 2,069 |
Inventory sales to Fuji Xerox | 120 | 145 | 147 |
R&D payments received from Fuji Xerox | 1 | 2 | 2 |
R&D payments paid to Fuji Xerox | 17 | 21 | 15 |
Fuji Xerox [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net payable due to affiliate, current | 339 | 402 | |
Due to Affiliate, Current | $85 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net - Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Beginning Balance, Goodwill | $9,205 | $9,062 | $8,803 |
Foreign currency translation | -154 | 22 | 75 |
Goodwill acquired during period | 249 | ||
Divestitures | -495 | ||
Ending Balance, Goodwill | 8,805 | 9,205 | 9,062 |
Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Beginning Balance, Goodwill | 6,815 | 6,780 | 6,619 |
Foreign currency translation | -98 | 6 | 41 |
Divestitures | -495 | ||
Ending Balance, Goodwill | 6,452 | 6,815 | 6,780 |
Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Beginning Balance, Goodwill | 2,390 | 2,282 | 2,184 |
Foreign currency translation | -56 | 16 | 34 |
Divestitures | 0 | ||
Ending Balance, Goodwill | 2,353 | 2,390 | 2,282 |
WDS [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 69 | ||
WDS [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 69 | ||
WDS [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
R.K. Dixon [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 30 | ||
R.K. Dixon [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
R.K. Dixon [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 30 | ||
Zeno[Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 44 | ||
Zeno[Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
Zeno[Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 44 | ||
Impika [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 43 | ||
Impika [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
Impika [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 43 | ||
Invoco [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 39 | ||
Invoco [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 39 | ||
Invoco [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
ISG [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 166 | ||
ISG [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 166 | ||
ISG [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
Consilience [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 23 | ||
Consilience [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 23 | ||
Consilience [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 0 | ||
Other Immaterial Acquisitions [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 21 | 34 | 85 |
Other Immaterial Acquisitions [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 2 | 29 | 51 |
Other Immaterial Acquisitions [Member] | Document Technology Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired during period | 19 | 5 | 34 |
ITO [Member] | |||
Goodwill [Roll Forward] | |||
Divestitures | 337 | ||
ITO [Member] | Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Divestitures | $487 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net - Intangible Assets by Major Class (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $3,738 | $4,013 | |
Accumulated Amortization | 1,707 | 1,510 | |
Net Amount | 2,031 | 2,503 | |
Intangible Assets from Continuing Operations, Gross (Excluding Goodwill) | 4,073 | 4,013 | |
Finite-Lived Intangible Assets from Continuing Operations, Accumulated Amortization | 1,845 | 1,510 | |
Finite-Lived Intangible Assets Including Discontinued Operations | 2,228 | 2,503 | |
Amortization of Intangible Assets | 315 | 305 | 301 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 305 | ||
2016 | 305 | ||
2017 | 300 | ||
2018 | 300 | ||
2019 | 300 | ||
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 12 years | ||
Gross Carrying Amount | 3,636 | 3,580 | |
Accumulated Amortization | 1,670 | 1,359 | |
Net Amount | 1,966 | 2,221 | |
Distribution network [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 25 years | ||
Gross Carrying Amount | 123 | 123 | |
Accumulated Amortization | 74 | 69 | |
Net Amount | 49 | 54 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 20 years | ||
Gross Carrying Amount | 274 | 269 | |
Accumulated Amortization | 87 | 72 | |
Net Amount | 187 | 197 | |
Technology, patents and non-compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 9 years | ||
Gross Carrying Amount | 40 | 41 | |
Accumulated Amortization | 14 | 10 | |
Net Amount | 26 | 31 | |
Services Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | 1,677 | ||
Document Technology Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | 354 | ||
ITO [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | -335 | 0 | |
Accumulated Amortization | -138 | 0 | |
Net Amount | ($197) | $0 |
Restructuring_and_Asset_Impair2
Restructuring and Asset Impairment Charges (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Restructuring reserve [Roll Forward] | ||||||
Balance at beginning of period | $116 | $130 | $123 | |||
Restructuring provision | 155 | 144 | 163 | |||
Reversals of prior accruals | -27 | -29 | -14 | |||
Net current period restructuring charges, continuing operations | 128 | [1] | 115 | [1] | 149 | [1] |
Discontinued operations | 2 | [2] | 7 | [2] | 4 | [2] |
Net Current Period Charges | 130 | 122 | 153 | |||
Charges against reserve and currency | -149 | -136 | -146 | |||
Balance at end of period | 97 | 116 | 130 | |||
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Asset impairment | 7 | 1 | 1 | |||
Effects of foreign currency and other non-cash items | 9 | -1 | 1 | |||
Restructuring Cash Payments | -133 | -136 | -144 | |||
Services Segment [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Net current period restructuring charges, continuing operations | 38 | 38 | 66 | |||
Document Technology Segment [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Net current period restructuring charges, continuing operations | 76 | 77 | 83 | |||
All Other Segments [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Net current period restructuring charges, continuing operations | 14 | 0 | 0 | |||
Employee Severance [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Balance at beginning of period | 109 | 123 | 116 | |||
Restructuring provision | 143 | 141 | 156 | |||
Reversals of prior accruals | -25 | -29 | -13 | |||
Net current period restructuring charges, continuing operations | 118 | 112 | 143 | |||
Discontinued operations | 2 | [2] | 7 | [2] | 4 | [2] |
Net Current Period Charges | 120 | 119 | 147 | |||
Charges against reserve and currency | -136 | -133 | -140 | |||
Balance at end of period | 93 | 109 | 123 | |||
Lease Cancellation and Other Costs [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Balance at beginning of period | 7 | 7 | 7 | |||
Restructuring provision | 5 | 2 | 5 | |||
Reversals of prior accruals | -2 | 0 | 0 | |||
Net current period restructuring charges, continuing operations | 3 | 2 | 5 | |||
Discontinued operations | 0 | [2] | 0 | [2] | 0 | [2] |
Net Current Period Charges | 3 | 2 | 5 | |||
Charges against reserve and currency | -6 | -2 | -5 | |||
Balance at end of period | 4 | 7 | 7 | |||
Asset Impairments [Member] | ||||||
Restructuring reserve [Roll Forward] | ||||||
Balance at beginning of period | 0 | [3] | 0 | [3] | 0 | [3] |
Restructuring provision | 7 | [3] | 1 | [3] | 2 | [3] |
Reversals of prior accruals | 0 | [3] | 0 | [3] | -1 | [3] |
Net current period restructuring charges, continuing operations | 7 | [3] | 1 | [3] | 1 | [3] |
Discontinued operations | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] |
Net Current Period Charges | 7 | [3] | 1 | [3] | 1 | [3] |
Charges against reserve and currency | -7 | [3] | -1 | [3] | -1 | [3] |
Balance at end of period | $0 | [3] | $0 | [3] | $0 | [3] |
[1] | (2)Represents amount recognized within the Consolidated Statements of Income for the years shown. | |||||
[2] | (1)Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | |||||
[3] | (1)Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. |
Supplementary_Financial_Inform2
Supplementary Financial Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Other Current Assets | ||||
Deferred taxes and income taxes receivable | $426 | $253 | ||
Royalties, license fees and software maintenance | 190 | 185 | ||
Restricted cash | 113 | 147 | ||
Prepaid expenses | 134 | 143 | ||
Derivative instruments | 22 | 6 | ||
Deferred purchase price from sales of accounts receivables | 73 | 121 | ||
Beneficial interests - sales of finance receivables | 35 | 64 | ||
Advances and deposits | 29 | 32 | ||
Other | 206 | 256 | ||
Discontinued operations | -146 | [1] | 0 | [1] |
Total Other Current Assets | 1,082 | 1,207 | ||
Other Current Liabilities | ||||
Deferred taxes and income taxes payable | 120 | 87 | ||
Other taxes payable | 134 | 180 | ||
Interest payable | 78 | 80 | ||
Restructuring reserves | 94 | 108 | ||
Derivative instruments | 58 | 70 | ||
Product warranties | 11 | 13 | ||
Dividends payable | 88 | 84 | ||
Distributor and reseller rebates/commissions | 120 | 125 | ||
Servicer liabilities | 107 | 140 | ||
Other | 811 | 826 | ||
Discontinued operations | -112 | [1] | 0 | [1] |
Total Other Current Liabilities | 1,509 | 1,713 | ||
Other Long-term Assets | ||||
Deferred taxes and income taxes receivable | 367 | 377 | ||
Prepaid pension costs | 17 | 55 | ||
Net investment in TRG | 158 | 173 | ||
Internal use software, net | 454 | [2] | 506 | [2] |
Product software, net | 307 | 343 | ||
Restricted cash | 139 | 170 | ||
Debt issuance costs, net | 31 | 31 | ||
Customer contract costs, net | 323 | 399 | ||
Beneficial interest - sales of finance receivables | 42 | 86 | ||
Deferred compensation plan investments | 125 | 116 | ||
Other | 427 | 334 | ||
Discontinued operations | -147 | [1] | 0 | [1] |
Total Other Long-term Assets | 2,243 | 2,590 | ||
Other Long-term Liabilities | ||||
Deferred taxes and income taxes payable | 142 | 286 | ||
Environmental reserves | 9 | 12 | ||
Unearned income | 166 | 168 | ||
Restructuring reserves | 3 | 8 | ||
Other | 232 | 283 | ||
Discontinued operations | -54 | [1] | 0 | [1] |
Total Other Long-term Liabilities | 498 | 757 | ||
Tax and labor litigation deposits in Brazil | 135 | 167 | ||
Escrow and cash collections related to receivable sales | 107 | 140 | ||
Other restricted cash | 10 | 10 | ||
Total Restricted Cash and Investments | 252 | 317 | ||
Net investment in discontinued operations TRG | 174 | |||
Discontinued operations TRG | $16 | |||
[1] | (1)Represents assets and liabilities related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||
[2] | (1)Internal use software at December 31, 2014 includes $20 related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Debt_Shortterm_Debt_Details
Debt - Short-term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Disclosure [Abstract] | ||||
Commercial paper | $150 | $0 | ||
Notes Payable | 1 | 5 | ||
Current maturities of long-term debt | 1,307 | 1,112 | ||
Discontinued operations - capital leases | -31 | [1] | 0 | [1] |
Total Short-term Debt | $1,427 | $1,117 | ||
[1] | (1)Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Debt_Longterm_Debt_Details
Debt - Long-term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Principal debt | $7,646 | $7,974 | ||
Unamortized discount | -54 | -58 | ||
Fair value adjustments(1) | 68 | [1] | 100 | [1] |
Interest Rate Derivatives, at Fair Value, Net | 5 | [1] | 0 | [1] |
Less: current maturities | -1,307 | -1,112 | ||
disposal group including discontinued operations current portion of long-term debt | -44 | [2] | 0 | [2] |
Total Long-term Debt | 6,314 | 6,904 | ||
Long-term debt from continuing operations, maturities, repayments of principal debt in next twelve months | 1,276 | [3] | ||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal Debt in Year Two | 974 | |||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Three | 1,023 | |||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Four | 1,017 | |||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Five | 1,158 | |||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal after Year Five | 2,123 | |||
Long-term Debt from Continuing Operations, Gross | 7,571 | |||
disposal group, including discontinued operations, maturities, repayments of principal debt due next twelve months | 31 | [4] | ||
disposal group, including discontinued operations, maturities, repayments of principal debt in year two | 24 | [4] | ||
disposal group, including discontinued operations, maturities, repayments of principal debt in year three | 14 | [4] | ||
disposal group, including discontinued operations, maturities, repayments of principal debt in year four | 6 | [4] | ||
disposal group, including discontinued operations, maturities, repayments of principal debt in year five | 0 | [4] | ||
disposal group, including discontinued operations, maturities, repayment of principal debt after year five | 0 | [4] | ||
disposal group, including discontinued operations, maturities, repayments of principal debt | 75 | |||
Total Long-term Principal Payments 2015 | 1,307 | |||
Total Long-term Principal Payments 2016 | 998 | |||
Total Long-term Principal Payments 2017 | 1,037 | |||
Total Long-term Principal Payments 2018 | 1,023 | |||
Total Long-term Principal Payments 2019 | 1,158 | |||
Total Long-term Principal Payments Thereafter | 2,123 | |||
Long-term Debt Maturities, Current Year by Quarter, First | 1,007 | |||
Long-term Debt Maturities, Subsequent Year by Quarter, Second | 256 | |||
Long-term Debt Maturities, Current Year by Quarter, Third | 7 | |||
Long-term Debt Maturities, Current Year by Quarter, Fourth | 6 | |||
Convertible Notes due 2014 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 0.00% | [2] | ||
Principal debt | 0 | 9 | ||
Senior Notes due 2014 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 0.00% | [2] | ||
Principal debt | 0 | 750 | ||
Floating Rate Notes due 2014 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 0.00% | [2] | ||
Principal debt | 0 | 300 | ||
Senior Notes due 2015 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.29% | [2] | ||
Principal debt | 1,000 | 1,000 | ||
Notes due 2016 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 7.20% | [2] | ||
Principal debt | 250 | 250 | ||
Senior Notes due 2016 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 6.48% | [2] | ||
Principal debt | 700 | 700 | ||
Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 6.83% | [2] | ||
Principal debt | 500 | 500 | ||
Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 2.98% | [2] | ||
Principal debt | 500 | 500 | ||
Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 0.57% | [2] | ||
Principal debt | 1 | 1 | ||
Senior Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 6.37% | [2] | ||
Principal debt | 1,000 | 1,000 | ||
Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 2.77% | [2] | ||
Principal debt | 500 | 500 | ||
Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.66% | [2] | ||
Principal debt | 650 | 650 | ||
Senior Notes due 2020 2.8% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 2.81% | [2] | ||
Principal debt | 400 | 0 | ||
Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.39% | [2] | ||
Principal debt | 1,062 | 1,062 | ||
Senior Notes due 2024 3.8% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.84% | [2] | ||
Principal debt | 300 | 0 | ||
Senior Notes due 2039 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 6.78% | [2] | ||
Principal debt | 350 | 350 | ||
Subtotal - Xerox Corporation | ||||
Debt Instrument [Line Items] | ||||
Principal debt | 7,213 | 7,572 | ||
Senior Notes due 2015 | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.25% | [2] | ||
Principal debt | 250 | 250 | ||
Borrowings secured by other assets | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.85% | [2] | ||
Principal debt | 180 | 146 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 1.20% | [2] | ||
Principal debt | 3 | 6 | ||
Subtotal subsidiary companies | ||||
Debt Instrument [Line Items] | ||||
Principal debt | $433 | $402 | ||
[1] | (1)Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. | |||
[2] | (2)Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. | |||
[3] | (1)Quarterly long-term debt maturities from continuing operations for 2015 are $1,007, $256, $7 and $6 for the first, second, third and fourth quarters, respectively. | |||
[4] | (2)Represents payments on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Debt_Commercial_Paper_and_Cred
Debt - Commercial Paper and Credit Facility (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ||
Credit Facility and Commercial Paper Maximum Borrowing Capacity | $2,000,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 2,000,000,000 | |
Commercial paper | 150,000,000 | 0 |
Letter of credit sub-facility | 300,000,000 | |
Debt Issuance Cost | 7,000,000 | |
Unamortized Debt Issuance Costs | 4,000,000 | |
Description of Guarantees Given by Subsidiaries | 100,000,000 | |
credit facility annual facility fee - low | 0.10% | |
credit facility annual facility fee - high | 0.30% | |
credit facility annual facility fee based on current credit rating | 0.15% | |
Commercial Paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility and Commercial Paper Maximum Borrowing Capacity | 2,000,000,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $2,750,000,000 | |
Credit Facility All-in Interest Rate, Low | 0.00% | |
Credit Facility All-in Interest Rate, High | 0.45% | |
LIBOR Plus All-in Spread, Low | 0.90% | |
LIBOR All-in Spread, High | 1.45% | |
Base rate at current year end | 0.10% | |
LIBOR borrowing at current year end | 1.10% | |
Credit Facility Leverage Terms | 3.75 | |
Credit Facility, Minimum Interest Coverage Ratio | 3 | |
Commercial Paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term Debt, Commercial Paper Maximum Maturity Days | 0 years 390 days |
Debt_Interest_IncomeExpense_De
Debt - Interest Income/Expense (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Disclosure [Abstract] | ||||||
Interest Expense, Debt | $400 | $435 | $464 | |||
Interest Expense | 377 | [1],[2],[3] | 403 | [1],[2],[3] | 427 | [1],[2],[3] |
Interest Income | $397 | [2],[4] | $494 | [2],[4] | $610 | [2],[4] |
[1] | (3)Excludes interest on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale. | |||||
[2] | (1)Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income. | |||||
[3] | Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||||
[4] | (2)Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of Income. |
Debt_Net_PaymentsProceeds_on_O
Debt - Net Payments/Proceeds on Other Debt (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Net proceeds (payments) on short-term debt | $145 | $5 | ($108) |
Proceeds from issuance of long-term debt | 808 | 617 | 1,116 |
Payments on long-term debt | -1,128 | -1,056 | -1,116 |
Net Payments on Other Debt | ($175) | ($434) | ($108) |
Financial_Instruments_Terminat
Financial Instruments - Terminated Swaps (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amortization of fair value adjustments for terminated swaps | $31 | $42 | $49 |
Expected net decrease to interest expense in future years through 2018 | $68 |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Hedges (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $58 | $70 |
Senior Notes due 2021 | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 300 | |
Derivative Liability, Fair Value, Gross Liability | $5 | |
Debt, Weighted Average Interest Rate | 2.43% | |
Debt Instrument, Interest Rate, Effective Percentage | 4.50% |
Financial_Instruments_Foreign_
Financial Instruments - Foreign Exchange Risk Management (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | $2,991 | |
Average Maturity of Foreign Exchange Hedging Contracts - within Three Months | 75.00% | |
Average Maturity of Foreign Exchange Hedging Contracts - within Three and Six Months | 7.00% | |
Average Maturity of Foreign Exchange Hedging Contracts - within Six and Twelve Months | 18.00% | |
Euro/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 785 | |
U.S. Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 450 | |
Japanese Yen/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 442 | |
Japanese Yen/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 338 | |
Canadian Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 299 | |
U.K. Pound Sterling/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 153 | |
Swiss Franc/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 83 | |
Philippine Peso/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 67 | |
Indian Rupee/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 62 | |
Euro/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 53 | |
Mexican Peso/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 52 | |
Euro/Danish Krone | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 24 | |
U.S. Dollar/Philippine Peso | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 23 | |
U.S. Dollar/Canadian Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 23 | |
Mexican Peso/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 22 | |
All Other | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 115 | |
Foreign exchange contract [Member] | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -36 | [1] |
Foreign exchange contract [Member] | Euro/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -11 | [1] |
Foreign exchange contract [Member] | U.S. Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 15 | [1] |
Foreign exchange contract [Member] | Japanese Yen/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -33 | [1] |
Foreign exchange contract [Member] | Japanese Yen/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -4 | [1] |
Foreign exchange contract [Member] | Canadian Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -1 | [1] |
Foreign exchange contract [Member] | U.K. Pound Sterling/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 1 | [1] |
Foreign exchange contract [Member] | Swiss Franc/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | Philippine Peso/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | Indian Rupee/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -1 | [1] |
Foreign exchange contract [Member] | Euro/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -1 | [1] |
Foreign exchange contract [Member] | Mexican Peso/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | -2 | [1] |
Foreign exchange contract [Member] | Euro/Danish Krone | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | U.S. Dollar/Philippine Peso | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | U.S. Dollar/Canadian Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | Mexican Peso/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | All Other | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | $1 | [1] |
[1] | (1)Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2014. |
Financial_Instruments_Summary_
Financial Instruments - Summary of Derivative Instruments Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current assets | $27 | $6 |
Other current liabilities | -58 | -70 |
Derivative Assets (Liabilities), at Fair Value, Net | -31 | -64 |
Derivatives Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | -25 | |
Foreign exchange contracts - forwards [Member] | Derivatives Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | -30 | -50 |
Foreign exchange contracts - forwards [Member] | Derivatives Designated as Hedging Instruments [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current assets | 7 | 1 |
Foreign exchange contracts - forwards [Member] | Derivatives Designated as Hedging Instruments [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | -39 | -51 |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | -6 | -14 |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current assets | 13 | 5 |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | -19 | -19 |
Currency Swap [Member] | Derivatives Designated as Hedging Instruments [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current assets | 2 | 0 |
Interest Rate Swap [Member] | Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current assets | $5 | $0 |
Financial_Instruments_Summary_1
Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | ($22) | ($37) | ($37) |
Currency (losses) gains, net | -5 | 7 | -3 |
Foreign exchange contracts - forwards [Member] | Not Designated as Hedging Instrument [Member] | Other expense - Currency gains (losses), net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in Income | -10 | -86 | -38 |
Fair Value Hedging [Member] | Interest rate contracts [Member] | Interest expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in Income | 5 | 0 | 0 |
Hedged Item Gain (Loss) Recognized in Income | -5 | 0 | 0 |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in OCI | -20 | -126 | -50 |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | Cost of sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from AOCI to Income | ($36) | ($123) | $37 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities - Recurring (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets: | ||||
Interest Rate Derivatives, at Fair Value, Net | $5 | [1] | $0 | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Interest Rate Derivatives, at Fair Value, Net | 5 | 0 | ||
Deferred compensation investments in cash surrender life insurance | 94 | 88 | ||
Deferred compensation investments in mutual funds | 32 | 28 | ||
Total | 153 | 122 | ||
Liabilities: | ||||
Foreign exchange contracts - forwards | 58 | 70 | ||
Deferred compensation plan liabilities | 135 | 125 | ||
Total | 193 | 195 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contracts - forwards [Member] | ||||
Assets: | ||||
Foreign exchange contracts - forwards | 20 | 6 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Currency Swap [Member] | ||||
Assets: | ||||
Foreign exchange contracts - forwards | $2 | $0 | ||
[1] | (1)Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $1,411 | $1,764 |
Accounts receivable, net | 2,652 | 2,929 |
Short-term debt | 1,427 | 1,117 |
Long-term debt | 6,314 | 6,904 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,411 | 1,764 |
Accounts receivable, net | 2,652 | 2,929 |
Short-term debt | 1,417 | 1,126 |
Long-term debt | $6,719 | $7,307 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Amounts Recognized in the Consolidated Balance Sheets: | ||||||
Pension and other benefit liabilities | ($2,847) | ($2,136) | ||||
United States Pension Plan of US Entity [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit obligation - beginning | 3,893 | 5,033 | ||||
Service cost | 9 | 10 | 112 | |||
Interest cost | 281 | [1] | 154 | [1] | 282 | [1] |
Plan participants' contributions | 0 | 0 | ||||
Actuarial loss (gain) | 813 | -440 | ||||
Currency exchange rate changes | 0 | 0 | ||||
Curtailments | -7 | 0 | ||||
Benefits paid/settlements | -273 | -864 | ||||
Other | 0 | 0 | ||||
Benefit obligation - ending | 4,716 | 3,893 | 5,033 | |||
Change in Plan Assets: | ||||||
Fair value of plan assets -beginning | 2,876 | 3,573 | ||||
Actual return on plan assets | 398 | 139 | ||||
Employer contribution | 124 | 27 | ||||
Plan participants' contributions | 0 | 0 | ||||
Currency exchange rate changes | 0 | 0 | ||||
Benefits paid/settlements | -273 | -864 | ||||
Other | 1 | 1 | ||||
Fair Value of Plan Assets - ending | 3,126 | 2,876 | 3,573 | |||
Net Funded Status | -1,590 | [2] | -1,017 | [2] | ||
Amounts Recognized in the Consolidated Balance Sheets: | ||||||
Other long-term assets | 0 | 0 | ||||
Accrued compensation and benefit costs | -24 | -25 | ||||
Pension and other benefit liabilities | -1,566 | -992 | ||||
Post-retirement medical benefits | 0 | 0 | ||||
Discontinued Operations | 0 | [3] | 0 | [3] | ||
Net Amounts Recognized | 1,590 | 1,017 | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net actuarial loss | 1,301 | 672 | ||||
Prior service credit | -13 | -15 | ||||
Total Pre-tax Loss (Gain) | 1,288 | 657 | ||||
Accumulated Benefit Obligation | 4,716 | 3,887 | ||||
Foreign Pension Plan [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit obligation - beginning | 6,664 | 6,708 | ||||
Service cost | 34 | 91 | 83 | |||
Interest cost | 272 | [1] | 260 | [1] | 270 | [1] |
Plan participants' contributions | 5 | 6 | ||||
Actuarial loss (gain) | 1,069 | -203 | ||||
Currency exchange rate changes | -594 | 98 | ||||
Curtailments | 0 | -10 | ||||
Benefits paid/settlements | -279 | -264 | ||||
Other | -5 | -22 | ||||
Benefit obligation - ending | 7,166 | 6,664 | 6,708 | |||
Change in Plan Assets: | ||||||
Fair value of plan assets -beginning | 5,789 | 5,431 | ||||
Actual return on plan assets | 899 | 326 | ||||
Employer contribution | 160 | 203 | ||||
Plan participants' contributions | 5 | 6 | ||||
Currency exchange rate changes | -484 | 88 | ||||
Benefits paid/settlements | -279 | -264 | ||||
Other | -2 | -1 | ||||
Fair Value of Plan Assets - ending | 6,088 | 5,789 | 5,431 | |||
Net Funded Status | -1,078 | [2] | -875 | [2] | ||
Amounts Recognized in the Consolidated Balance Sheets: | ||||||
Other long-term assets | 17 | 55 | ||||
Accrued compensation and benefit costs | -28 | -30 | ||||
Pension and other benefit liabilities | -1,040 | -900 | ||||
Post-retirement medical benefits | 0 | 0 | ||||
Discontinued Operations | -27 | [3] | 0 | [3] | ||
Net Amounts Recognized | 1,078 | 875 | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net actuarial loss | 2,036 | 1,741 | ||||
Prior service credit | -20 | -20 | ||||
Total Pre-tax Loss (Gain) | 2,016 | 1,721 | ||||
Accumulated Benefit Obligation | 6,883 | 6,368 | ||||
Postretirement Health Coverage [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit obligation - beginning | 856 | 989 | ||||
Service cost | 9 | 9 | 9 | |||
Interest cost | 36 | [1] | 33 | [1] | 42 | [1] |
Plan participants' contributions | 16 | 14 | ||||
Actuarial loss (gain) | 119 | -88 | ||||
Currency exchange rate changes | -13 | -10 | ||||
Curtailments | 0 | 0 | ||||
Benefits paid/settlements | -86 | -91 | ||||
Other | 0 | 0 | ||||
Benefit obligation - ending | 937 | 856 | 989 | |||
Change in Plan Assets: | ||||||
Fair value of plan assets -beginning | 0 | 0 | ||||
Actual return on plan assets | 0 | 0 | ||||
Employer contribution | 70 | 77 | ||||
Plan participants' contributions | 16 | 14 | ||||
Currency exchange rate changes | 0 | 0 | ||||
Benefits paid/settlements | -86 | -91 | ||||
Other | 0 | 0 | ||||
Fair Value of Plan Assets - ending | 0 | 0 | 0 | |||
Net Funded Status | -937 | [2] | -856 | [2] | ||
Amounts Recognized in the Consolidated Balance Sheets: | ||||||
Other long-term assets | 0 | 0 | ||||
Accrued compensation and benefit costs | -72 | -71 | ||||
Pension and other benefit liabilities | 0 | 0 | ||||
Post-retirement medical benefits | -865 | -785 | ||||
Discontinued Operations | 0 | [3] | 0 | [3] | ||
Net Amounts Recognized | 937 | 856 | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net actuarial loss | 122 | 6 | ||||
Prior service credit | -42 | -85 | ||||
Total Pre-tax Loss (Gain) | $80 | ($79) | ||||
[1] | (1)Interest cost includes interest expense on non-TRA obligations of $371, $349 and $382 and interest expense directly allocated to TRA participant accounts of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | (1)Includes under-funded and un-funded plans. | |||||
[3] | (2)Represents the net un-funded pension obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. The net pension cost associated with these plans is immaterial. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Employee_Benefit_Plans_Accumul
Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | $11,659 | $9,783 | |||
Accumulated Benefit Obligation | 11,392 | 9,517 | |||
Fair value of plan assets | 8,974 | 7,840 | |||
United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 4,716 | 3,893 | |||
Accumulated Benefit Obligation | 4,716 | 3,887 | |||
Fair value of plan assets | 3,126 | 2,876 | |||
Pension Benefit Obligation | 4,716 | 3,893 | 5,033 | ||
Net Funded Status | -1,590 | [1] | -1,017 | [1] | |
Defined Benefit Plan, Fair Value of Plan Assets | 3,126 | 2,876 | 3,573 | ||
Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 6,943 | 5,890 | |||
Accumulated Benefit Obligation | 6,676 | 5,630 | |||
Fair value of plan assets | 5,848 | 4,964 | |||
Pension Benefit Obligation | 7,166 | 6,664 | 6,708 | ||
Net Funded Status | -1,078 | [1] | -875 | [1] | |
Defined Benefit Plan, Fair Value of Plan Assets | 6,088 | 5,789 | 5,431 | ||
Underfunded [Member] | United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 4,351 | 3,571 | |||
Accumulated Benefit Obligation | 4,351 | 3,565 | |||
Fair value of plan assets | 3,126 | 2,876 | |||
Underfunded [Member] | Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 6,376 | 5,350 | |||
Accumulated Benefit Obligation | 6,125 | 5,104 | |||
Fair value of plan assets | 5,848 | 4,964 | |||
Unfunded [Member] | United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 365 | 322 | |||
Accumulated Benefit Obligation | 365 | 322 | |||
Fair value of plan assets | 0 | 0 | |||
Pension Benefit Obligation | 300 | ||||
Net Funded Status | -300 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Unfunded [Member] | Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 567 | 540 | |||
Accumulated Benefit Obligation | 551 | 526 | |||
Fair value of plan assets | 0 | 0 | |||
Funded [Member] | United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 4,400 | ||||
Net Funded Status | -1,300 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,100 | ||||
UNITED KINGDOM | Defined Benefit Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 4,200 | ||||
Net Funded Status | -300 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,900 | ||||
Canada | Defined Benefit Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 900 | ||||
Net Funded Status | -100 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 800 | ||||
Pension Plans All Other Countries [Member] | Unfunded [Member] | Defined Benefit Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 500 | ||||
Net Funded Status | -500 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Pension Plans All Other Countries [Member] | Funded [Member] | Defined Benefit Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 1,600 | ||||
Net Funded Status | -200 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,400 | ||||
Funded and Unfunded Plans [Member] | Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefit Obligation | 11,900 | ||||
Net Funded Status | -2,700 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $9,200 | ||||
[1] | (1)Includes under-funded and un-funded plans. |
Employee_Benefit_Plans_Total_R
Employee Benefit Plans - Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plans | $82 | $267 | $300 | |||
Net actuarial loss (gain) | -1,291 | 729 | -852 | |||
Amortization of net prior service credit | -83 | [1] | -172 | [1] | -124 | [1] |
Amortization of net prior service credit | -46 | [1] | -45 | [1] | -64 | [1] |
Curtailment gain | -121 | [1] | -260 | [1] | -190 | [1] |
Total Recognized in Other Comprehensive Income | 1,070 | -950 | 794 | |||
Interest Expense on Non-TRA Obligations | 371 | 349 | 382 | |||
Interest Expense Allocated to TRA Participant Accounts | 182 | 65 | 170 | |||
Expected Investment Income on Non-TRA Assets | 450 | 431 | 443 | |||
Actual Investment Income on TRA Assets | 182 | 65 | 170 | |||
United States Pension Plan of US Entity [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 9 | 10 | 112 | |||
Interest cost | 281 | [2] | 154 | [2] | 282 | [2] |
Expected return on plan assets | -290 | [3] | -179 | [3] | -306 | [3] |
Recognized net actuarial loss | 17 | 19 | 53 | |||
Amortization of prior service credit | -2 | -2 | -23 | |||
Recognized settlement loss | 51 | 162 | 82 | |||
Recognized curtailment gain | 0 | 0 | 0 | |||
Defined Benefit Plans | 66 | 164 | 200 | |||
Defined contribution plans (3) | 58 | [4] | 64 | [4] | 28 | [4] |
Net Periodic Benefit Cost | 124 | 228 | 228 | |||
Net actuarial loss (gain) | 697 | -403 | 427 | |||
Prior service credit | 0 | 0 | -2 | |||
Amortization of net prior service credit | -68 | -181 | -135 | |||
Amortization of net prior service credit | 2 | 2 | 23 | |||
Curtailment gain | 0 | 0 | 0 | |||
Total Recognized in Other Comprehensive Income | 631 | -582 | 313 | |||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 755 | -354 | 541 | |||
Foreign Pension Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 34 | 91 | 83 | |||
Interest cost | 272 | [2] | 260 | [2] | 270 | [2] |
Expected return on plan assets | -342 | -317 | -307 | |||
Recognized net actuarial loss | 54 | 77 | 53 | |||
Amortization of prior service credit | -1 | 0 | 0 | |||
Recognized settlement loss | 0 | 0 | 1 | |||
Recognized curtailment gain | -1 | -8 | 0 | |||
Defined Benefit Plans | 16 | 103 | 100 | |||
Defined contribution plans (3) | 44 | [4] | 25 | [4] | 33 | [4] |
Net Periodic Benefit Cost | 60 | 128 | 133 | |||
Net actuarial loss (gain) | 481 | -224 | 416 | |||
Prior service credit | -6 | -14 | -1 | |||
Amortization of net prior service credit | -54 | -77 | -54 | |||
Amortization of net prior service credit | 1 | 0 | 0 | |||
Curtailment gain | 2 | 0 | 0 | |||
Total Recognized in Other Comprehensive Income | 424 | -315 | 361 | |||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 484 | -187 | 494 | |||
Postretirement Health Coverage [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 9 | 9 | 9 | |||
Interest cost | 36 | [2] | 33 | [2] | 42 | [2] |
Expected return on plan assets | 0 | 0 | 0 | |||
Recognized net actuarial loss | 1 | 2 | 1 | |||
Amortization of prior service credit | -43 | -43 | -41 | |||
Defined Benefit Plans | 3 | 1 | 11 | |||
Net Periodic Benefit Cost | 3 | 1 | 11 | |||
Net actuarial loss (gain) | 119 | -88 | 18 | |||
Prior service credit | 0 | 0 | -6 | |||
Amortization of net prior service credit | -1 | -2 | -1 | |||
Amortization of net prior service credit | 43 | 43 | 41 | |||
Total Recognized in Other Comprehensive Income | 161 | -47 | 52 | |||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 164 | -46 | 63 | |||
Benefit plans net actuarial loss [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 111 | |||||
Benefit plans net actuarial loss [Member] | Other Postretirement Benefit Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 5 | |||||
Benefit plans prior service credits [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | -4 | |||||
Benefit plans prior service credits [Member] | Other Postretirement Benefit Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | ($30) | |||||
[1] | (2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information. | |||||
[2] | (1)Interest cost includes interest expense on non-TRA obligations of $371, $349 and $382 and interest expense directly allocated to TRA participant accounts of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[3] | (2)Expected return on plan assets includes expected investment income on non-TRA assets of $450, $431 and $443 and actual investment income on TRA assets of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[4] | (3)Excludes contributions related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale. |
Employee_Benefit_Plans_Plan_Am
Employee Benefit Plans - Plan Amendments and Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Defined benefit plan global plan assets at measurement dates | $9.20 | $8.70 |
Employee_Benefit_Plans_Defined
Employee Benefit Plans - Defined Benefit Plans Assets Measured at Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | $3,126 | $2,876 | ||
Defined Benefit Plan Plan Assets Percent of Total | 100.00% | |||
Pension Fair Value, Level One, Other Assets | -1 | 9 | ||
United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 52 | 48 | ||
Defined Benefit Plan Plan Assets Percent of Total | 2.00% | 1.00% | ||
United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,060 | 1,051 | ||
Defined Benefit Plan Plan Assets Percent of Total | 33.00% | 36.00% | ||
United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,368 | 1,172 | ||
Defined Benefit Plan Plan Assets Percent of Total | 44.00% | 41.00% | ||
United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | -29 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | -1.00% | ||
United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 80 | |||
Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6,088 | 5,789 | ||
Defined Benefit Plan Plan Assets Percent of Total | 100.00% | |||
Pension Fair Value, Level One, Other Assets | 6 | 6 | ||
Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 608 | 688 | ||
Defined Benefit Plan Plan Assets Percent of Total | 10.00% | 12.00% | ||
Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,925 | 2,197 | ||
Defined Benefit Plan Plan Assets Percent of Total | 31.00% | 38.00% | ||
Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2,468 | 2,047 | ||
Defined Benefit Plan Plan Assets Percent of Total | 42.00% | 35.00% | ||
Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 137 | 168 | ||
Defined Benefit Plan Plan Assets Percent of Total | 2.00% | 3.00% | ||
Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6 | |||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 891 | 891 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 52 | 48 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 794 | 793 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | -1 | [1] | 10 | [2] |
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2,305 | 2,837 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 608 | 688 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,636 | 1,854 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 55 | 181 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 76 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6 | |||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,713 | 1,505 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 266 | 258 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,368 | 1,172 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | -29 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 70 | |||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2,876 | 2,336 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 289 | 343 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2,413 | 1,866 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 137 | 92 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 522 | 480 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 907 | 616 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | |||
Defined Benefits Plan Assets, Other [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Plan Assets Percent of Total | 100.00% | |||
Defined Benefits Plan Assets, Other [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 39 | |||
Defined Benefit Plan Plan Assets Percent of Total | 1.00% | 3.00% | ||
Defined Benefits Plan Assets, Other [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Plan Assets Percent of Total | 100.00% | |||
Defined Benefits Plan Assets, Other [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 14 | |||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6 | [1] | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 40 | |||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 8 | |||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | |||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | |||
Guaranteed Insurance Contracts [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Guaranteed Insurance Contracts [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 129 | 135 | ||
Defined Benefit Plan Plan Assets Percent of Total | 2.00% | 2.00% | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 129 | 135 | ||
Private Equity Or Venture Capital [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 497 | 451 | ||
Defined Benefit Plan Plan Assets Percent of Total | 16.00% | 16.00% | ||
Private Equity Or Venture Capital [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 499 | 212 | ||
Defined Benefit Plan Plan Assets Percent of Total | 8.00% | 4.00% | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 497 | 451 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 499 | 212 | ||
Real estate [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 110 | 103 | ||
Defined Benefit Plan Plan Assets Percent of Total | 4.00% | 4.00% | ||
Real estate [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 308 | 336 | ||
Defined Benefit Plan Plan Assets Percent of Total | 5.00% | 6.00% | ||
Real estate [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 46 | 40 | ||
Real estate [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 32 | ||
Real estate [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 39 | 34 | ||
Real estate [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 29 | 35 | ||
Real estate [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 25 | 29 | ||
Real estate [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 279 | 269 | ||
Other Contract [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Other Contract [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 14 | 62 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 1.00% | ||
Other Contract [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Other Contract [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 62 | ||
Other Contract [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Other Contract [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 14 | 0 | ||
Other Contract [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Other Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Equity Contract [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Equity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Equity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Foreign exchange contract [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | -12 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Foreign exchange contract [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | -5 | 44 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 1.00% | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 14 | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | -12 | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | -5 | 30 | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Foreign exchange contract [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Interest Rate Contract [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | -1 | -17 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | -1.00% | ||
Interest Rate Contract [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 128 | 62 | ||
Defined Benefit Plan Plan Assets Percent of Total | 2.00% | 1.00% | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | -1 | -17 | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 128 | 62 | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 10 | 10 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Asset-backed Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | 1 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 10 | 10 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | 1 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 988 | 908 | ||
Defined Benefit Plan Plan Assets Percent of Total | 32.00% | 32.00% | ||
Corporate Bond Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 873 | 806 | ||
Defined Benefit Plan Plan Assets Percent of Total | 15.00% | 14.00% | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 23 | 146 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 988 | 908 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 850 | 660 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 225 | 180 | ||
Defined Benefit Plan Plan Assets Percent of Total | 7.00% | 6.00% | ||
Debt security issued by government agency [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,561 | 1,220 | ||
Defined Benefit Plan Plan Assets Percent of Total | 26.00% | 21.00% | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 25 | 31 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 225 | 180 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,536 | 1,189 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 145 | 74 | ||
Defined Benefit Plan Plan Assets Percent of Total | 5.00% | 3.00% | ||
US Treasury Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 33 | 20 | ||
Defined Benefit Plan Plan Assets Percent of Total | 1.00% | 0.00% | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 7 | 4 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 145 | 74 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 26 | 16 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Global Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 9 | 9 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Global Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 10 | 5 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2 | 2 | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 4 | 5 | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 7 | 7 | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6 | 0 | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Global Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Emerging Markets Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 253 | 240 | ||
Defined Benefit Plan Plan Assets Percent of Total | 8.00% | 8.00% | ||
Emerging Markets Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 345 | 338 | ||
Defined Benefit Plan Plan Assets Percent of Total | 6.00% | 6.00% | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 140 | 171 | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 276 | 262 | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 113 | 69 | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 69 | 76 | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Emerging Markets Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
International Developed Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 287 | 305 | ||
Defined Benefit Plan Plan Assets Percent of Total | 9.00% | 11.00% | ||
International Developed Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,227 | 1,526 | ||
Defined Benefit Plan Plan Assets Percent of Total | 20.00% | 26.00% | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 195 | 182 | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,065 | 1,314 | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 92 | 123 | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 162 | 212 | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
International Developed Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Small Cap Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 91 | 94 | ||
Defined Benefit Plan Plan Assets Percent of Total | 3.00% | 3.00% | ||
US Small Cap Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 28 | 40 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 1.00% | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 52 | 48 | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 28 | 40 | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 39 | 46 | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Small Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Mid Cap Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 73 | 71 | ||
Defined Benefit Plan Plan Assets Percent of Total | 2.00% | 2.00% | ||
US Mid Cap Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 10 | 13 | ||
Defined Benefit Plan Plan Assets Percent of Total | 0.00% | 0.00% | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 73 | 71 | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 10 | 13 | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Mid Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Large Cap Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 347 | 332 | ||
Defined Benefit Plan Plan Assets Percent of Total | 11.00% | 12.00% | ||
US Large Cap Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 305 | 275 | ||
Defined Benefit Plan Plan Assets Percent of Total | 5.00% | 5.00% | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 332 | 319 | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 253 | 220 | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 15 | 13 | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 52 | 55 | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Large Cap Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | $0 | $0 | ||
[1] | (1)Other Level 1 assets include net non-financial assets of $(1) U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. | |||
[2] | Other Level 1 assets include net non-financial liabilities of $9 U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses. |
Employee_Benefit_Plans_Defined1
Employee Benefit Plans - Defined Benefit Plans Measured Using Significant Unobservable Inputs Level 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
United States Pension Plan of US Entity [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | $3,573 | ||
Fair Value of Plan Assets - ending | 3,126 | 2,876 | 3,573 |
United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 480 | 358 | |
Purchases | 45 | 178 | |
Sales | -65 | -95 | |
Net transfers in from Level 1 | 0 | ||
Realized gains (losses) | 34 | 70 | |
Unrealized gains (losses) | 28 | -31 | |
Currency translation | 0 | 0 | |
Fair Value of Plan Assets - ending | 522 | 480 | |
United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 29 | 58 | |
Purchases | 1 | 1 | |
Sales | -6 | -36 | |
Net transfers in from Level 1 | 0 | ||
Realized gains (losses) | -7 | 24 | |
Unrealized gains (losses) | 8 | -18 | |
Currency translation | 0 | 0 | |
Fair Value of Plan Assets - ending | 25 | 29 | |
United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity funds [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 451 | 300 | |
Purchases | 44 | 177 | |
Sales | -59 | -59 | |
Net transfers in from Level 1 | 0 | ||
Realized gains (losses) | 41 | 46 | |
Unrealized gains (losses) | 20 | -13 | |
Currency translation | 0 | 0 | |
Fair Value of Plan Assets - ending | 497 | 451 | |
Foreign Pension Plan [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 5,431 | ||
Fair Value of Plan Assets - ending | 6,088 | 5,789 | 5,431 |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 616 | 466 | |
Purchases | 375 | 260 | |
Sales | -89 | -133 | |
Net transfers in from Level 1 | -1 | ||
Realized gains (losses) | 35 | 23 | |
Unrealized gains (losses) | 37 | -21 | |
Currency translation | -67 | 22 | |
Fair Value of Plan Assets - ending | 907 | 616 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 269 | 332 | |
Purchases | 74 | 64 | |
Sales | -64 | -128 | |
Net transfers in from Level 1 | 0 | ||
Realized gains (losses) | 20 | 17 | |
Unrealized gains (losses) | -1 | -21 | |
Currency translation | -19 | 5 | |
Fair Value of Plan Assets - ending | 279 | 269 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity funds [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 212 | 3 | |
Purchases | 279 | 193 | |
Sales | 0 | 0 | |
Net transfers in from Level 1 | 0 | ||
Realized gains (losses) | 0 | 2 | |
Unrealized gains (losses) | 38 | 2 | |
Currency translation | -30 | 12 | |
Fair Value of Plan Assets - ending | 499 | 212 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Guaranteed insurance contracts [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 135 | 131 | |
Purchases | 22 | 3 | |
Sales | -25 | -5 | |
Net transfers in from Level 1 | -1 | ||
Realized gains (losses) | 15 | 4 | |
Unrealized gains (losses) | 0 | -2 | |
Currency translation | -18 | 5 | |
Fair Value of Plan Assets - ending | $129 | $135 |
Employee_Benefit_Plans_Investm
Employee Benefit Plans - Investment Strategy (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Equity investments, percent | 0.33 | 0.36 |
Fixed income investments, percent | 0.43 | 0.44 |
Real estate, percent | 0.08 | 0.05 |
Private equity, percent | 0.09 | 0.14 |
Other, percent | 0.07 | 0.01 |
Pension Plan Assets, Investment Strategy | 1 | 1 |
Foreign Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Equity investments, percent | 0.34 | 0.41 |
Fixed income investments, percent | 0.47 | 0.47 |
Real estate, percent | 0.09 | 0.09 |
Private equity, percent | 0.06 | 0 |
Other, percent | 0.04 | 0.03 |
Pension Plan Assets, Investment Strategy | 1 | 1 |
Employee_Benefit_Plans_Contrib
Employee Benefit Plans - Contributions (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Post Retirement Benefit Plan, Future Employer Contribution in Next Fixcal Year | $71 | |||
2015 | 894 | |||
2016 | 595 | |||
2017 | 597 | |||
2018 | 602 | |||
2019 | 605 | |||
Years 2020-2023 | 3,220 | |||
Post employment benefit plan contributions by employer | 102 | 89 | 61 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 284 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 340 | |||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 124 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 180 | |||
2015 | 643 | |||
2016 | 343 | |||
2017 | 336 | |||
2018 | 333 | |||
2019 | 326 | |||
Years 2020-2023 | 1,681 | |||
Discount rate assumptions used to determine benefit obligations | 3.90% | 4.80% | 3.70% | |
Rate of compensation increase assumptions used to determine benefit obligation | 0.20% | 0.20% | 0.20% | |
Discount rate assumptions used to determine net periodic benefit costs | 4.80% | 3.70% | 4.80% | |
Expected return on plan assets assumptions used to determine net periodic benefit cost | 7.80% | 7.80% | 7.80% | |
Rate of compensation increase assumptions used to determine net periodic benefit cost | 0.20% | 0.20% | 3.50% | |
Foreign Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 160 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 160 | |||
2015 | 251 | |||
2016 | 252 | |||
2017 | 261 | |||
2018 | 269 | |||
2019 | 279 | |||
Years 2020-2023 | 1,539 | |||
Discount rate assumptions used to determine benefit obligations | 3.10% | 4.20% | 4.00% | |
Rate of compensation increase assumptions used to determine benefit obligation | 2.60% | 2.70% | 2.60% | |
Discount rate assumptions used to determine net periodic benefit costs | 4.20% | 4.00% | 4.60% | |
Expected return on plan assets assumptions used to determine net periodic benefit cost | 6.10% | 6.10% | 6.20% | |
Rate of compensation increase assumptions used to determine net periodic benefit cost | 2.70% | 2.60% | 2.70% | |
Postretirement Health Coverage [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
2015 | 71 | |||
2016 | 70 | |||
2017 | 70 | |||
2018 | 69 | |||
2019 | 68 | |||
Years 2020-2023 | 323 | |||
Discount rate assumptions used to determine benefit obligations | 3.80% | 4.50% | 3.60% | |
Discount rate assumptions used to determine net periodic benefit costs | 3.80% | 4.50% | 3.60% | 4.50% |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 70 | |||
Health care cost trend rate assumed for next year | 0.07 | 0.072 | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 0.049 | 0.049 | ||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | ||
Effect on total service and interest cost components - 1% increase | 1 | |||
Effect on total service and interest cost components - 1% decrease | -1 | |||
Effect on post-retirement benefit obligation - 1% increase | 46 | |||
Effect on post-retirement benefit obligation - 1% decrease | -39 | |||
Scenario, Forecast [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate assumptions used to determine net periodic benefit costs | 3.90% | |||
Expected return on plan assets assumptions used to determine net periodic benefit cost | 7.50% | |||
Rate of compensation increase assumptions used to determine net periodic benefit cost | 0.20% | |||
Scenario, Forecast [Member] | Foreign Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate assumptions used to determine net periodic benefit costs | 3.10% | |||
Expected return on plan assets assumptions used to determine net periodic benefit cost | 5.20% | |||
Rate of compensation increase assumptions used to determine net periodic benefit cost | 2.60% | |||
ITO [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Post employment benefit plan contributions by employer | $8 | 7 | 2 |
Income_and_Other_Taxes_Domesti
Income and Other Taxes - Domestic and Foreign (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic income | $675 | $905 | $850 |
Foreign income | 531 | 338 | 434 |
Income Before Income Taxes and Equity Income | $1,206 | $1,243 | $1,284 |
Income_and_Other_Taxes_Income_
Income and Other Taxes - Income Tax Expense (Benefit), Current Deferred, by Jurisdiction (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | ($3) | $17 | $5 |
Deferred Federal Income Tax Expense (Benefit) | 79 | 66 | 93 |
Current Foreign Tax Expense (Benefit) | 115 | 82 | 114 |
Deferred Foreign Income Tax Expense (Benefit) | 28 | 36 | -1 |
Current State Tax Expense (Benefit) | 34 | 37 | 32 |
Deferred State Income Tax Expense (Benefit) | 6 | 15 | 13 |
Total Provision | $259 | $253 | $256 |
Income_and_Other_Taxes_Reconci
Income and Other Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Disclosure [Abstract] | ||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
Nondeductible expenses | 2.00% | 1.50% | 2.60% | |||
Effect of tax law changes | -1.00% | -0.60% | 0.70% | |||
Change in valuation allowance for deferred tax assets | -1.60% | 0.20% | -0.70% | |||
State taxes, net of federal benefit | 2.20% | 2.70% | 2.00% | |||
Audit and other tax return adjustments | -2.90% | -2.50% | -4.70% | |||
Tax-exempt income, credits and incentives | -2.40% | -4.00% | -2.60% | |||
Foreign rate differential adjusted for U.S. taxation of foreign profits(1) | -9.60% | [1] | -12.40% | [1] | -12.40% | [1] |
Other | -0.20% | 0.50% | 0.00% | |||
Effective Income Tax Rate | 21.50% | 20.40% | 19.90% | |||
Income Taxes Paid | $121 | $155 | $137 | |||
[1] | (1)The “U.S. taxation of foreign profits†represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. |
Income_and_Other_Taxes_Allocat
Income and Other Taxes - Allocation of Income Tax Expense Benefit (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Interperiod Allocaion [Line Items] | ||||||
Pre-tax income | $259 | $253 | $256 | |||
Discontinued operations | 6 | [1] | 27 | [1] | 21 | [1] |
Stock option and incentive plans, net | -18 | -13 | -5 | |||
Total Income Tax (Benefit) Expense | -163 | 576 | 6 | |||
Defined Benefit Pension Plans, Defined Benefit [Member] | ||||||
Income Tax Interperiod Allocaion [Line Items] | ||||||
Other comprehensive income (loss), tax | -408 | 318 | -233 | |||
Cash flow hedges [Member] | ||||||
Income Tax Interperiod Allocaion [Line Items] | ||||||
Other comprehensive income (loss), tax | 0 | 0 | -24 | |||
Translation adjustments [Member] | ||||||
Income Tax Interperiod Allocaion [Line Items] | ||||||
Other comprehensive income (loss), tax | ($2) | ($9) | ($9) | |||
[1] | (1)Refer to Note 4 - Divestitures for additional information regarding discontinued operations. |
Income_and_Other_Taxes_Unrecog
Income and Other Taxes - Unrecognized Tax Benefits Rollforward (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance, Beginning | $267 | $201 | $225 | |||
Additions related to current year | 16 | 60 | 28 | |||
Additions related to prior years positions | 10 | 39 | 5 | |||
Reductions related to prior years positions | -35 | -19 | -36 | |||
Settlements with taxing authorities | -10 | [1] | 0 | [1] | -13 | [1] |
Reductions related to lapse of statute of limitations | -6 | -14 | -8 | |||
Currency | -2 | 0 | 0 | |||
Balance, Ending | 240 | 267 | 201 | |||
Unrecognized Tax Benefits, Reasonably Possible but Uncertainty of Timing | 39 | 36 | 16 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $17 | $20 | $20 | |||
[1] | (1)Majority of settlements did not result in the utilization of cash. |
Income_and_Other_Taxes_Deferre
Income and Other Taxes - Deferred Tax Asset And Liability (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Tax Assets And Liabilities [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $8,500,000,000 | |
Research and development | 475,000,000 | 647,000,000 |
Post-retirement medical benefits | 341,000,000 | 310,000,000 |
Net operating losses | 531,000,000 | 597,000,000 |
Operating reserves, accruals and deferrals | 318,000,000 | 374,000,000 |
Tax credit carryforwards | 579,000,000 | 694,000,000 |
Deferred compensation | 286,000,000 | 268,000,000 |
Pension | 672,000,000 | 431,000,000 |
Other | 177,000,000 | 87,000,000 |
Subtotal | 3,379,000,000 | 3,408,000,000 |
Valuation allowance | -538,000,000 | -614,000,000 |
Total | 2,841,000,000 | 2,794,000,000 |
Unearned income and installment sales | 883,000,000 | 959,000,000 |
Intangibles and goodwill | 1,161,000,000 | 1,253,000,000 |
Anticipated foreign repatriations | 50,000,000 | 55,000,000 |
Other | 154,000,000 | 53,000,000 |
Total | 2,248,000,000 | 2,320,000,000 |
Total Deferred Taxes, Net | 593,000,000 | 474,000,000 |
Deferred Tax Assets, Net, Current | 382,000,000 | 209,000,000 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | -76,000,000 | -40,000,000 |
Deferred Tax Assets, Tax Credit Carryforwards | 579,000,000 | |
Net Operating Loss Carryforwards, Expire | 1,100,000,000 | |
Net Operating Loss Carryforwards, Indefinitely | 2,000,000,000 | |
Carryforward Indefinitely [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 97,000,000 | |
Carryforwards Expire [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards | $482,000,000 |
Contingencies_and_Litigation_D
Contingencies and Litigation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |||
Product warranty expense | $25 | $28 | $29 |
Product warranty accrual | 11 | 14 | |
Brazil Tax And Labor Contingencies [Member] | |||
Loss Contingencies [Line Items] | |||
Unreserved tax and labor contingencies | 817 | 933 | |
Escrow cash deposits | 135 | ||
Net book value of assets with liens | 18 | ||
Letters of credit | $244 |
Contingencies_and_Litigation_O
Contingencies and Litigation - Other Contingencies (Details) (USD $) | Dec. 31, 2014 |
loans | |
Guarantor Obligations [Line Items] | |
Outstanding student loan portfolio, loans | 2,700,000 |
Outstanding principal balance - student loan portfolio | $39,700,000,000 |
Reserves for losses on defaulted loans | 3,000,000 |
Other contingencies letter of credits [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | 455,000,000 |
Surety bonds guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | 720,000,000 |
Discontinued Operations [Member] | Surety bonds guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | $19,000,000 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 05, 2010 | ||||
Equity [Abstract] | ||||||||
Preferred stock, ACS acquisition shares issued | 300,000 | |||||||
ACS acquisition, Series A convertible preferred stock aggregate liquidation preference | $300,000,000 | |||||||
Preferred stock aggregate fair value | 349,000,000 | |||||||
Preferred stock, dividend rate, percentage | 8.00% | |||||||
Cash dividends declared-preferred stock | $24,000,000 | $24,000,000 | [1] | $24,000,000 | [1] | $24,000,000 | [1] | |
Preferred stock converted into common shares | 89.8876 | |||||||
Total conversion of number of preferred stock shares into common stock, shares | 26,966,000 | |||||||
Total conversion of preferred stock shares into common stock, initial conversion price per share | $11.13 | |||||||
[1] | (2)Cash dividends declared on preferred stock of $20 per share in each quarter of 2014, 2013 and 2012. |
Shareholders_Equity_Equity_Sto
Shareholders' Equity - Equity Stocks Information (Details) (USD $) | Dec. 31, 2014 |
Class of Stock [Line Items] | |
Preferred Stock, Shares Authorized | 22,000,000 |
Preferred Stock, Par or Stated Value Per Share | $1 |
Common Stock, Shares Authorized | 1,750,000,000 |
Common Stock, Par or Stated Value Per Share | $1 |
Stock Compensation Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 113,000,000 |
Convertible Debt [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 48,000,000 |
Series A [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 27,000,000 |
Shareholders_Equity_Treasury_S
Shareholders' Equity - Treasury Stock (Details) (USD $) | 12 Months Ended |
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
Equity, Class of Treasury Stock [Line Items] | |
Authorized share repurchase programs | $8,000,000,000 |
Share repurchase cost | 6,455,000,000 |
Share repurchase fees | 10,000,000 |
Number of shares repurchased | 580,029 |
Share Repurchase Program, Additional Amount Authorized to be Repurchased | 1,500,000,000 |
Share Repurchase Program Combined Authorization | 8,000,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $1,500,000,000 |
Shareholders_Equity_Common_Sto
Shareholders' Equity - Common Stock and Treasury Stock Period Activity (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Acquisition of Treasury stock | 580,029 | |||
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, Beginning | 1,210,321 | 1,238,696 | 1,352,849 | |
Stock based compensation plans, net | 13,965 | 28,731 | 17,343 | |
Contributions to U.S. pension plan, stock | 15,366 | [1] | ||
Acquisition of Treasury stock | 0 | 0 | 0 | |
Cancellation of Treasury stock | -100,928 | -58,102 | -146,862 | |
Conversion of 2014 9% Notes, shares | 996 | 996 | ||
Balance, Ending | 1,124,354 | 1,210,321 | 1,238,696 | |
Treasury Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, Beginning | 22,001 | 14,924 | 15,508 | |
Stock based compensation plans, net | 0 | 0 | 0 | |
Contributions to U.S. pension plan, stock | 0 | |||
Acquisition of Treasury stock | 86,536 | 65,179 | 146,278 | |
Cancellation of Treasury stock | -100,928 | -58,102 | -146,862 | |
Conversion of 2014 9% Notes, shares | 0 | 0 | ||
Balance, Ending | 7,609 | 22,001 | 14,924 | |
[1] | (1)Refer to Note 16 - Employee Benefits Plans for additional information. |
Shareholders_Equity_Total_Stoc
Shareholders' Equity - Total Stock-based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 50 | 59 | |
Stock-based compensation expense, pre-tax | $91 | $90 | $125 |
Income tax benefit recognized in earnings | $35 | $34 | $48 |
Shareholders_Equity_Sharebased
Shareholders' Equity - Share-based Compensation, Activity (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | |||||
Awards Other Than Options, Number of Shares [Roll Forward] | |||||
Outstanding at January 1 | 19,079 | 19,079 | 30,414 | 33,784 | |
Granted | 926 | 610 | 13,033 | ||
Vested | -6,934 | -9,992 | -14,848 | ||
Cancelled | -874 | -1,953 | -1,555 | ||
Outstanding at December 31 | 12,197 | 19,079 | 30,414 | ||
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Outstanding at January 1 | $9.62 | $9.62 | $9.19 | $8.70 | |
Granted | $12.30 | $9.09 | $7.82 | ||
Vested | $10.33 | $8.43 | $6.89 | ||
Cancelled | $8.55 | $8.77 | $8.97 | ||
Outstanding at December 31 | $9.50 | $9.62 | $9.19 | ||
Performance Shares [Member] | |||||
Awards Other Than Options, Number of Shares [Roll Forward] | |||||
Outstanding at January 1 | 8,058 | 8,058 | 14,536 | 9,763 | |
Granted | 8,518 | 8,395 | 16,967 | 1,839 | 5,193 |
Vested | -2,404 | -6,817 | 0 | ||
Cancelled | -1,900 | -1,500 | -420 | ||
Outstanding at December 31 | 20,721 | 8,058 | 14,536 | ||
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Outstanding at January 1 | $9.15 | $9.15 | $8.74 | $9.21 | |
Granted | $12.38 | $12.17 | $12.28 | $7.97 | $7.87 |
Vested | $10.68 | $8.03 | $0 | ||
Cancelled | $11.07 | $8.82 | $8.96 | ||
Outstanding at December 31 | $11.36 | $9.15 | $8.74 |
Shareholders_Equity_Sharebased1
Shareholders' Equity - Share-based Compensation, Stock Option Activity (Details) (ACS Member, Stock Options [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ACS Member | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued and outstanding | 6,115 | 14,199 | |
Awards, Stock Options, Number of Shares [Roll Forward] | |||
Outstanding at January 1, Shares | 14,199 | 33,732 | 50,070 |
Granted, Shares | 0 | 0 | 0 |
Cancelled/expired, Shares | -215 | -1,298 | -8,617 |
Exercised, Shares | -7,869 | -18,235 | -7,721 |
Outstanding at December 31, Shares | 6,115 | 14,199 | 33,732 |
Exercisable, Shares | 6,115 | 12,164 | 28,676 |
Awards, Stock Options, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at January 1, Weighted Average | $6.95 | $6.86 | $6.98 |
Granted, Weighted Average | $0 | $0 | $0 |
Cancelled, Weighted Average | $6.95 | $6.53 | $8.58 |
Exercised, Weighted Average | $6.92 | $6.82 | $5.69 |
Outstanding at December 31, Weighted Average | $7 | $6.95 | $6.86 |
Exercisable, Weighted Average | $7 | $7.06 | $6.95 |
Shareholders_Equity_Sharebased2
Shareholders' Equity - Share-based Compensation, Awards, Unrecognized Compensation (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $132 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | 23 |
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years) | 1 year 2 months |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $109 |
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years) | 2 years 2 months |
Shareholders_Equity_Sharebased3
Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items] | |
Aggregate intrinsic value of outstanding non option awards | $169 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items] | |
Aggregate intrinsic value of outstanding non option awards | $287 |
Shareholders_Equity_Sharebased4
Shareholders' Equity - Share-based Compensation, Stock Option Awards, Intrinsic Value (Details) (Stock Options [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate intrinsic value outstanding | $42 |
Aggregate intrinsic value exercisable | $42 |
Weighted-average remaining contractual life, outstanding, years | 2 years 10 months |
Weighted-average remaining contractual life, exercisable, years | 2 years 10 months |
Shareholders_Equity_Sharebased5
Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value, Cash Received and Tax Benefit (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value | $85 | $91 | $117 |
Cash Received | 0 | 0 | 0 |
Tax Benefit - RSU and PS awards | 26 | 30 | 33 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value | 30 | 62 | 0 |
Cash Received | 0 | 0 | 0 |
Tax Benefit - RSU and PS awards | 10 | 22 | 0 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value - Stock Options | 42 | 51 | 12 |
Cash Received | 55 | 124 | 44 |
Tax Benefit - Stock Options | $15 | $19 | $4 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Comprehensive Income [Abstract] | ||||||
Translation Adjustment (Losses) Gains, Pre-tax | ($736) | ($194) | $104 | |||
Translation Adjustment (Losses) Gains, Net of Tax | -734 | [1] | -185 | [1] | 113 | [1] |
Changes in fair value of cash flow hedges losses, pre-tax | -20 | -126 | -50 | |||
Changes in fair value of cash flow hedges losses, net of tax | -10 | -89 | -35 | |||
Changes in cash flow hedges reclassed to earnings, pre-tax | 36 | [2] | 123 | [2] | -37 | [2] |
Changes in cash flow hedges reclassed to earnings, net of tax | 26 | [2] | 86 | [2] | -28 | [2] |
Other (losses) gains, pre-tax | -1 | 3 | 0 | |||
Other (losses) gains, net of tax | -1 | 3 | 0 | |||
Net Unrealized Gains (Losses), Pre-tax | 15 | 0 | -87 | |||
Net Unrealized Gains (Losses), Net of Tax | 15 | [1] | 0 | [1] | -63 | [1] |
Net actuarial/prior service (losses) gains, pre-tax | -1,291 | 729 | -852 | |||
Net actuarial/prior service (losses) gains, net of tax | -861 | 483 | -578 | |||
Prior service amortization, pre-tax | -46 | [3] | -45 | [3] | -64 | [3] |
Prior service amortization, net of tax | -29 | [3] | -29 | [3] | -39 | [3] |
Actuarial loss amortization, pre-tax | 121 | [3] | 260 | [3] | 190 | [3] |
Actuarial loss amortization, net of tax | 83 | [3] | 172 | [3] | 124 | [3] |
Fuji Xerox changes in defined benefit plans, net, pre-tax | 40 | [4] | 23 | [4] | -13 | [4] |
Fuji Xerox changes in defined benefit plans, net, net of tax | 40 | [4] | 23 | [4] | -13 | [4] |
Other gains (losses), pre-tax | 106 | [5] | -17 | [5] | -55 | [5] |
Other gains (losses), net of tax | 105 | [5] | -17 | [5] | -55 | [5] |
Change in Defined Benefit Plans (Losses) Gains, Pre-tax | -1,070 | 950 | -794 | |||
Change in Defined Benefit Plans (Losses) Gain, Net of Tax | -662 | [1] | 632 | [1] | -561 | [1] |
Other Comprehensive (Loss) Income, Pre-Tax | -1,791 | 756 | -777 | |||
Other Comprehensive (Loss) Income, Net of Tax | -1,381 | 447 | -511 | |||
Less: Other comprehensive loss attributable to noncontrolling interest, pre-tax | -1 | -1 | 0 | |||
Less: Other comprehensive loss attributable to noncontrolling interest, net of tax | -1 | [1] | -1 | [1] | 0 | [1] |
Other Comprehensive (Loss) Income Attributable to Xerox, Pre-Tax | -1,790 | 757 | -777 | |||
Other Comprehensive (Loss) Income Attributable to Xerox, Net of Tax | ($1,380) | [1] | $448 | [1] | ($511) | [1] |
[1] | Refer to Note 21 - Other Comprehensive (Loss) Income for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. | |||||
[2] | (1)Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges. | |||||
[3] | (2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information. | |||||
[4] | (3)Represents our share of Fuji Xerox's benefit plan changes. | |||||
[5] | (4)Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL. |
Other_Comprehensive_Income_AOC
Other Comprehensive Income - AOCL (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Millions, unless otherwise specified | ||||||
AOCL [Abstract] | ||||||
Cumulative translation adjustments | ($1,743) | ($1,010) | ($826) | |||
Other unrealized losses, net | -22 | -37 | -37 | |||
Benefit plans net actuarial losses and prior service credits(1) | -2,394 | [1] | -1,732 | [1] | -2,364 | [1] |
Total Accumulated Other Comprehensive Loss Attributable to Xerox | ($4,159) | ($2,779) | ($3,227) | |||
[1] | Includes our share of Fuji Xerox. |
Earnings_per_Share_Reconciliat
Earnings per Share - Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic [Abstract] | |||
Net income from continuing operations attributable to Xerox | $1,084 | $1,139 | $1,152 |
Accrued dividends on preferred stock | -24 | -24 | -24 |
Net Income From Continuing Operations Available to Common Shareholders | 1,060 | 1,115 | 1,128 |
Net (loss) income from discontinued operations attributable to Xerox | -115 | 20 | 43 |
Adjusted Net Income Available to Common Shareholders | 945 | 1,135 | 1,171 |
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 |
Continuing operations (in dollars per share) | $0.92 | $0.91 | $0.87 |
Discontinued operations (in dollars per share) | ($0.10) | $0.02 | $0.03 |
Total Basic Earnings per Share (in dollars per share) | $0.82 | $0.93 | $0.90 |
Earnings Per Share, Diluted [Abstract] | |||
Net income from continuing operations | 1,084 | 1,139 | 1,152 |
Interest on Convertible Securities, net | 0 | 1 | 1 |
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 1,084 | 1,140 | 1,129 |
Net (loss) income from discontinued operations attributable to Xerox | -115 | 20 | 43 |
Adjusted Net Income (Loss) Available to Common Shareholders, Diluted | 969 | 1,160 | 1,172 |
Weighted-average common shares outstanding | 1,154,365 | 1,225,486 | 1,302,053 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Adjusted Weighted Average Common Shares Outstanding | 1,198,563 | 1,273,527 | 1,329,184 |
Continuing operations (in dollars per share) | $0.90 | $0.89 | $0.85 |
Discontinued operations (in dollars per share) | ($0.09) | $0.02 | $0.03 |
Total Diluted Earnings per Share (in dollars per share) | $0.81 | $0.91 | $0.88 |
Stock options [Member] | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Stock options, Restricted stock and performance shares | 2,976 | 5,401 | 4,335 |
Restricted Stock and Performance Shares [Member] | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Stock options, Restricted stock and performance shares | 14,256 | 13,931 | 20,804 |
Convertible Preferred Stock [Member] | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Convertible preferred stock | 26,966 | 26,966 | 0 |
Convertible Debt Securities [Member] | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Convertible securities | 0 | 1,743 | 1,992 |
Earnings (loss) per share, diluted [Member] | |||
Earnings Per Share, Basic [Abstract] | |||
Accrued dividends on preferred stock | $0 | $0 | ($24) |
Earnings_per_Share_AntiDilutiv
Earnings per Share - Anti-Dilutive Securities (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,126 | 21,209 | 79,793 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,139 | 8,798 | 29,397 |
Restricted stock and performance shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,987 | 12,411 | 23,430 |
Convertible preferred stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 26,966 |
Earnings_per_Share_Dividends_P
Earnings per Share - Dividends Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||||||||||||||
Dividends per common share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 | $0.25 | $0.23 | $0.17 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 |
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $340 | $155 | $276 | |
Intrepid Learning Solutions, Inc. (Intrepid) [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition, Date of Acquisition Agreement | 31-Jan-15 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $28 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Valuation and Qualifying Accounts Beginning Balance | $266 | $278 | $303 | |||
Additions charged to bad debt provision | 53 | [1] | 120 | [1] | 119 | [1] |
Amounts (credited) charged to other income statement accounts | 0 | [1] | 3 | [1] | 8 | [1] |
Deductions and other, net of recoveries | -100 | [2] | -135 | [2] | -152 | [2] |
Valuation and Qualifying Accounts Ending Balance | 219 | 266 | 278 | |||
Accounts Receivable [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Valuation and Qualifying Accounts Beginning Balance | 112 | 108 | 102 | |||
Additions charged to bad debt provision | 20 | [1] | 39 | [1] | 44 | [1] |
Amounts (credited) charged to other income statement accounts | -3 | [1] | -2 | [1] | 3 | [1] |
Deductions and other, net of recoveries | -41 | [2] | -33 | [2] | -41 | [2] |
Valuation and Qualifying Accounts Ending Balance | 88 | 112 | 108 | |||
Financing Receivable [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Valuation and Qualifying Accounts Beginning Balance | 154 | 170 | 201 | |||
Additions charged to bad debt provision | 33 | [1] | 81 | [1] | 75 | [1] |
Amounts (credited) charged to other income statement accounts | 3 | [1] | 5 | [1] | 5 | [1] |
Deductions and other, net of recoveries | -59 | [2] | -102 | [2] | -111 | [2] |
Valuation and Qualifying Accounts Ending Balance | $131 | $154 | $170 | |||
[1] | Bad debt provisions relate to estimated losses due to credit and similar collectibility issues. Other charges (credits) relate to adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. | |||||
[2] | Deductions and other, net of recoveries primarily relates to receivable write-offs, but also includes the impact of foreign currency translation adjustments and recoveries of previously written off receivables. |