Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Xerox Corporation |
Entity Central Index Key | 108,772 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 1,013,303,609 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenues | |||||
Sales | $ 1,145 | $ 1,224 | $ 2,166 | $ 2,350 | |
Outsourcing, maintenance and rentals | 3,158 | 3,279 | 6,335 | 6,532 | |
Financing | 82 | 87 | 165 | 177 | |
Total Revenues | 4,385 | 4,590 | 8,666 | 9,059 | |
Costs and Expenses | |||||
Cost of sales | 707 | 776 | 1,331 | 1,450 | |
Cost of outsourcing, maintenance and rentals | 2,279 | 2,356 | 4,623 | 4,724 | |
Cost of financing | 32 | 32 | 65 | 65 | |
Research, development and engineering expenses | 128 | 142 | 262 | 283 | |
Selling, administrative and general expenses | 862 | 906 | 1,744 | 1,821 | |
Restructuring and related costs | 71 | 157 | 197 | 171 | |
Amortization of intangible assets | 78 | 79 | 167 | 156 | |
Separation costs | [1] | 28 | 0 | 36 | 0 |
Other expenses, net | 55 | 68 | 112 | 114 | |
Total Costs and Expenses | 4,240 | 4,516 | 8,537 | 8,784 | |
Income before Income Taxes and Equity Income | 145 | 74 | 129 | 275 | |
Income tax expense (benefit) | 9 | (9) | (6) | 30 | |
Equity in net income of unconsolidated affiliates | 22 | 29 | 59 | 63 | |
Income from Continuing Operations | 158 | 112 | 194 | 308 | |
Loss from discontinued operations, net of tax | 0 | (95) | 0 | (61) | |
Net Income | 158 | 17 | 194 | 247 | |
Less: Net income attributable to noncontrolling interests | 3 | 5 | 5 | 10 | |
Net income from continuing operations | 155 | 107 | 189 | 298 | |
Net Income Attributable to Xerox | $ 155 | $ 12 | $ 189 | $ 237 | |
Basic Earnings per Share: | |||||
Continuing operations (dollars per share) | $ 0.15 | $ 0.09 | $ 0.17 | $ 0.26 | |
Discontinued operations (dollars per share) | 0 | (0.08) | 0 | (0.06) | |
Total Basic Earnings per Share | 0.15 | 0.01 | 0.17 | 0.20 | |
Diluted Earnings per Share: | |||||
Continuing operations (dollars per share) | 0.15 | 0.09 | 0.17 | 0.26 | |
Discontinued operations (dollars per share) | 0 | (0.08) | 0 | (0.06) | |
Total Diluted Earnings per Share | $ 0.15 | $ 0.01 | $ 0.17 | $ 0.20 | |
[1] | Separation costs are expenses incurred in connection with Xerox's planned separation into two independent, publicly-traded companies. These costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services. Refer to Note 1 - Basis of Presentation for additional information regarding Xerox's planned separation. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 158 | $ 17 | $ 194 | $ 247 | |
Less: Net income attributable to noncontrolling interests | 3 | 5 | 5 | 10 | |
Net Income Attributable to Xerox | 155 | 12 | 189 | 237 | |
Other Comprehensive Income (Loss), Net: | |||||
Translation adjustments, net | [1] | (77) | 194 | 114 | (315) |
Unrealized gains (losses), net | [1] | 24 | (19) | 33 | 10 |
Changes in defined benefit plans, net | [1] | 20 | 67 | (92) | 165 |
Other Comprehensive (Loss) Income, Net | [1] | (33) | 242 | 55 | (140) |
Less: Other comprehensive (loss) income, net attributable to noncontrolling interests | (1) | 1 | (1) | 0 | |
Other Comprehensive (Loss) Income, Net Attributable to Xerox | (32) | 241 | 56 | (140) | |
Comprehensive Income (Loss), Net | |||||
Comprehensive Income, Net | 125 | 259 | 249 | 107 | |
Less: Comprehensive income, net attributable to noncontrolling interests | 2 | 6 | 4 | 10 | |
Comprehensive Income, Net Attributable to Xerox | $ 123 | $ 253 | $ 245 | $ 97 | |
[1] | Refer to Note 15 - Other Comprehensive (Loss) Income for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 1,203 | $ 1,368 |
Accounts receivable, net | 2,477 | 2,319 |
Billed portion of finance receivables, net | 98 | 97 |
Finance receivables, net | 1,295 | 1,315 |
Inventories | 1,017 | 942 |
Other current assets | 761 | 644 |
Total current assets | 6,851 | 6,685 |
Finance receivables due after one year, net | 2,508 | 2,576 |
Equipment on operating leases, net | 484 | 495 |
Land, buildings and equipment, net | 973 | 996 |
Investments in affiliates, at equity | 1,471 | 1,389 |
Intangible assets, net | 1,605 | 1,765 |
Goodwill | 8,726 | 8,823 |
Other long-term assets | 2,023 | 2,060 |
Total Assets | 24,641 | 24,789 |
Liabilities, Current [Abstract] | ||
Short-term debt and current portion of long-term debt | 2,029 | 985 |
Accounts payable | 1,379 | 1,614 |
Accrued compensation and benefits costs | 646 | 651 |
Unearned income | 404 | 428 |
Other current liabilities | 1,437 | 1,576 |
Total current liabilities | 5,895 | 5,254 |
Long-term debt | 5,355 | 6,354 |
Pension and other benefit liabilities | 2,680 | 2,513 |
Post-retirement medical benefits | 752 | 785 |
Other long-term liabilities | 394 | 417 |
Total Liabilities | 15,076 | 15,323 |
Commitments and Contingencies | ||
Series A Convertible Preferred Stock | 349 | 349 |
Common stock | 1,013 | 1,013 |
Additional paid-in capital | 3,047 | 3,017 |
Retained earnings | 9,704 | 9,686 |
Accumulated other comprehensive loss | (4,586) | (4,642) |
Xerox shareholders’ equity | 9,178 | 9,074 |
Noncontrolling interests | 38 | 43 |
Total Equity | 9,216 | 9,117 |
Total Liabilities and Equity | $ 24,641 | $ 24,789 |
Shares of common stock issued and outstanding | 1,013,304 | 1,012,836 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 158 | $ 17 | $ 194 | $ 247 |
Adjustments required to reconcile net income to cash flows from operating activities: | ||||
Depreciation and amortization | 278 | 297 | 568 | 593 |
Provision for receivables | 12 | 14 | 27 | 32 |
Provision for inventory | 6 | 10 | 15 | 16 |
Net loss (gain) on sales of businesses and assets | 4 | 74 | (16) | 62 |
Undistributed equity in net income of unconsolidated affiliates | 9 | (3) | (28) | (34) |
Stock-based compensation | 13 | 23 | 27 | 45 |
Restructuring and asset impairment charges | 63 | 157 | 186 | 171 |
Payments for restructurings | (37) | (30) | (65) | (61) |
Defined benefit pension cost | 33 | 32 | 76 | 73 |
Contributions to defined benefit pension plans | (35) | (57) | (71) | (98) |
Increase in accounts receivable and billed portion of finance receivables | (83) | (6) | (268) | (245) |
Collections of deferred proceeds from sales of receivables | 74 | 62 | 133 | 134 |
Decrease (increase) in inventories | 7 | (67) | (92) | (193) |
Increase in equipment on operating leases | (68) | (69) | (130) | (139) |
Decrease in finance receivables | 21 | 6 | 85 | 78 |
Collections on beneficial interest from sales of finance receivables | 7 | 12 | 15 | 27 |
(Increase) decrease in other current and long-term assets | (1) | 11 | (60) | (60) |
Decrease in accounts payable and accrued compensation | (158) | (53) | (305) | (111) |
Decrease in other current and long-term liabilities | (119) | (57) | (186) | (83) |
Net change in income tax assets and liabilities | (27) | 17 | (74) | 49 |
Net change in derivative assets and liabilities | (66) | 14 | (49) | 2 |
Other operating, net | 86 | (55) | 170 | (43) |
Net cash provided by operating activities | 177 | 349 | 152 | 462 |
Cash Flows from Investing Activities: | ||||
Cost of additions to land, buildings and equipment | (51) | (77) | (101) | (152) |
Proceeds from sales of land, buildings and equipment | 1 | 0 | 20 | 16 |
Cost of additions to internal use software | (22) | (25) | (44) | (45) |
Proceeds from (payments for) Businesses and Interest in Affiliates | 3 | 930 | (53) | 933 |
Acquisitions, net of cash acquired | 0 | (20) | (18) | (48) |
Other investing, net | 2 | 23 | 4 | 29 |
Net cash (used in) provided by investing activities | (67) | 831 | (192) | 733 |
Cash Flows from Financing Activities: | ||||
Net proceeds on short-term debt | 249 | 310 | 998 | 514 |
Proceeds from issuance of long-term debt | 5 | 10 | 9 | 673 |
Payments on long-term debt | (257) | (267) | (965) | (1,284) |
Common stock dividends | (78) | (77) | (149) | (147) |
Preferred stock dividends | (6) | (6) | (12) | (12) |
Proceeds from issuances of common stock | 2 | 4 | 3 | 14 |
Excess tax benefits from stock-based compensation | 0 | 1 | 0 | 3 |
Payments to acquire treasury stock, including fees | 0 | (395) | 0 | (611) |
Repurchases related to stock-based compensation | 0 | 0 | 0 | (1) |
Distributions to noncontrolling interests | (1) | (2) | (12) | (56) |
Other financing | (1) | (1) | (1) | (1) |
Net cash used in financing activities | (87) | (423) | (129) | (908) |
Effect of exchange rate changes on cash and cash equivalents | (9) | 12 | 4 | (57) |
Increase (decrease) in cash and cash equivalents | 14 | 769 | (165) | 230 |
Cash and cash equivalents at beginning of period | 1,189 | 872 | 1,368 | 1,411 |
Cash and Cash Equivalents at End of Period | $ 1,203 | $ 1,641 | $ 1,203 | $ 1,641 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context suggests otherwise. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with the accounting policies described in our 2015 Annual Report on Form 10-K (2015 Annual Report), and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in our 2015 Annual Report. In our opinion, all adjustments which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income.” Planned Company Separation On January 29, 2016, Xerox announced plans for the complete legal and structural separation of the Company's Business Process Outsourcing (BPO) business from its Document Technology and Document Outsourcing (DT/DO) business. Each of the businesses will operate as an independent, publicly-traded company. The transaction is intended to be tax-free for Xerox shareholders for federal income tax purposes. During second quarter 2016, we announced that the new BPO company will be named Conduent Incorporated (Conduent) and that the DT/DO company will retain the Xerox Corporation name. In addition, the CEO for each of the two new companies was announced, and an initial Form 10 registration statement for Conduent was filed with the U.S. Securities and Exchange Commission (SEC) on June 30, 2016. As part of the SEC's standard review process, we expect to receive comments from the SEC and file amendments to this filing to address SEC comments and to provide further information about the new company. Xerox has begun the process to separate and is finalizing the transaction structure, which is predicated on a spin-off of the BPO business. To effect the separation, Xerox will first undertake a series of internal transactions, following which Conduent Incorporated will hold, directly or through its subsidiaries, the BPO business. The separation will be completed by way of a pro rata distribution of Conduent Incorporated shares held by Xerox to Xerox's shareholders. Our objective is to complete the separation by year-end 2016, subject to customary regulatory approvals, the effectiveness of a Form 10 registration statement with the SEC, tax considerations, securing any necessary financing and final approval of the Xerox Board of Directors. Until the separation is complete, we will continue to operate and report as a single company, and it will continue to be business as usual for our customers and employees. In conjunction with the separation, Xerox also began a three -year strategic transformation program targeting a cumulative $ 2.4 billion of savings across all segments. The program is inclusive of ongoing activities and $600 of incremental transformation initiatives. Refer to Note 9- Restructuring Programs for additional information. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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, 2018, with early adoption permitted for fiscal years beginning January 1, 2017. Subsequent to the issuance of ASU 2014-09, the FASB issued the following ASU’s which amend or provide additional guidance on topics addressed in ASU 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue Recognition - Principal versus Agent (reporting revenue gross versus net). In April 2016, the FASB issued ASU 2016-10, Revenue Recognition - Identifying Performance Obligations and Licenses. In May 2016, the FASB issued ASU 2016-12, Revenue Recognition - Narrow Scope Improvements and Practical Expedients. We will adopt this standard beginning January 1, 2018, and we will use the cumulative catch-up transition method. We continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02 , Leases . This update requires the recognition of leased assets and lease obligations by lessees for those leases currently classified as operating leases under existing lease guidance. Short term leases with a term of 12 months or less are not required to be recognized. The update also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for our fiscal year beginning January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09 , Compensation - Stock Compensation, Improvements to Employee Share-Based payment Accounting (Topic 718). This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This update is effective for our fiscal year beginning January 1, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13 Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets. The update impacts financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted as of January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. Equity Method Accounting In March 2016, the FASB issued ASU 2016-07 , Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. This update is effective for our fiscal year beginning January 1, 2017, with early adoption permitted. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows. Accounting for Income Taxes: Balance Sheet Presentation of Deferred Taxes In November 2015, the FASB issued ASU 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes. This update, which simplifies the presentation of deferred income taxes, requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. As allowed by the update, we early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this update resulted in a reclassification of our net current deferred tax asset and liabilities to the net non-current deferred tax asset and liabilities in our Consolidated Balance Sheet as of December 31, 2015. Prior periods were not retrospectively adjusted. The current requirement that deferred tax liabilities and assets of a tax-paying component (jurisdiction) of an entity be offset and presented as a single amount is not affected by this update. Interest In April 2015, the FASB issued ASU 2015-03 , Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 , which indicated that the SEC staff would not object to an entity deferring and presenting debt issuance costs associated with a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. All of our debt issuance costs were reported as deferred charges in Other long-term assets and were $ 32 at December 31, 2015, $4 of which is related to our credit agreement. Upon adoption of this update effective January 1, 2016, we reclassified $ 28 of debt issuance costs to long-term debt. Prior periods were retroactively revised. The costs associated with our credit agreement will continue to be reported as a deferred charge in Other long-term assets. The adoption of this standard is not expected to have any effect on our financial condition, results of operations or cash flows. Other Updates In 2016 and 2015, the FASB also issued the following Accounting Standards Updates which are not expected to have a material impact on our financial condition, results of operations or cash flows when adopted in future periods. Those updates are as follows: • Financial Instruments - Classification and Measurement: ASU 2016-01 , Financial Instruments - Recognition and Measurement of Financial Instruments and Financial Liabilities. This update is effective for our fiscal year beginning January 1, 2018. • Derivatives and Hedging: ASU 2016-06 , Contingent Put and Call Options in Debt Instruments, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Derivatives and Hedging: ASU 2016-05 , Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Business Combinations: ASU 2015-16 , Accounting for Measurement Period Adjustments in a Business Combination , which was effective for our fiscal year beginning January 1, 2016. • Inventory: ASU 2015-11 , Simplifying the Subsequent Measurement of Inventory, which is effective for our fiscal year beginning January 1, 2017. • Intangibles - Goodwill and Other - Internal Use Software: ASU 2015-05 , Intangibles-Goodwill and Other-Internal Use Software - Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which was effective for our fiscal year beginning January 1, 2016. • Consolidation: ASU 2015-02 , Consolidation (Topic 810): Amendments to the Consolidation Analysis, which was effective for our fiscal year beginning January 1, 2016. • Derivatives and Hedging: 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, which was effective for our fiscal year beginning January 1, 2016. • Disclosures of Going Concern Uncertainties: 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 , which is effective for our fiscal year ending December 31, 2016. • Stock Compensation: 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, which was effective for our fiscal year beginning January 1, 2016. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2016 | |
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 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. In the first quarter of 2016, we revised our segment reporting to reflect the following changes: • The transfer of the Education/Student Loan business from the Services segment to Other as a result of the expected continued run-off of this business. The business does not meet the threshold for separate segment reporting. • The exclusion of the non-service elements of our defined-benefit pension and retiree-health plan costs from Segment profit. Prior year amounts were accordingly revised to reflect these changes. 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. Our Document Technology segment includes the sale of document systems and supplies, provision of technical service and financing of products. Our products 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. 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, Global Imaging Systems (GIS) network integration solutions, Education/Student Loan business, electronic presentation systems and non-allocated corporate items including non-financing interest and other items included in Other expenses, net. Operating segment revenues and profitability were as follows: Three Months Ended Six Months Ended Segment Revenue Segment Profit (Loss) Segment Revenue Segment Profit(Loss) 2016 Services $ 2,470 $ 236 $ 4,952 $ 426 Document Technology 1,752 221 3,391 388 Other 163 (80 ) 323 (146 ) Total $ 4,385 $ 377 $ 8,666 $ 668 2015 Services $ 2,526 $ 181 $ 4,993 $ 368 Document Technology 1,880 235 3,710 467 Other 184 (62 ) 356 (109 ) Total $ 4,590 $ 354 $ 9,059 $ 726 Three Months Ended Six Months Ended Reconciliation to Pre-tax Income 2016 2015 2016 2015 Segment Profit $ 377 $ 354 $ 668 $ 726 Reconciling items: Restructuring and related costs (71 ) (157 ) (197 ) (171 ) Restructuring charges of Fuji Xerox (1 ) (1 ) (1 ) (2 ) Business transformation costs (1) — (3 ) (1 ) (7 ) Amortization of intangible assets (78 ) (79 ) (167 ) (156 ) Non-service retirement-related costs (2) (32 ) (10 ) (78 ) (52 ) Equity in net income of unconsolidated affiliates (22 ) (29 ) (59 ) (63 ) Separation costs (3) (28 ) — (36 ) — Other — (1 ) — — Pre-tax Income $ 145 $ 74 $ 129 $ 275 __________________________ (1) 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. (2) Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 13 - Employee Benefit Plans for details regarding these elements. (3) Separation costs are expenses incurred in connection with Xerox's planned separation into two independent, publicly-traded companies. These costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services. Refer to Note 1 - Basis of Presentation for additional information regarding Xerox's planned separation. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Information Technology Outsourcing (ITO) In 2014, we announced an agreement to sell our ITO business to Atos SE (Atos). As a result of this agreement, we reported the ITO business as held for sale and a discontinued operation up through its date of sale, which was completed on June 30, 2015. In February 2016, we reached an agreement with Atos on the final adjustments to the closing balance of net assets sold as well as the settlement of certain indemnifications and recorded an additional pre-tax loss on the disposal in 2015 of $24 ( $14 after-tax). This additional loss was recorded in the 2015 financial statements because the agreement with Atos was reached before the financial statements had been issued, accordingly no adjustment was required in 2016. In the first quarter 2016, we paid Atos approximately $52 , representing a $28 adjustment to the final sales price as a result of this agreement and a payment of $24 due from closing. The payment is reflected in Investing cash flows as an adjustment of the sales proceeds. Other Discontinued Operations There were no Discontinued Operations as of June 30, 2016 . Summarized financial information for our Discontinued Operations is as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 ITO Other Total ITO Other Total Revenues $ 308 $ — $ 308 $ 619 $ — $ 619 Income from operations (1) 43 — 43 104 — 104 Loss on disposal (68 ) — (68 ) (72 ) — (72 ) Net (loss) income before income taxes $ (25 ) $ — $ (25 ) $ 32 $ — $ 32 Income tax expense (70 ) — (70 ) (93 ) — (93 ) Loss from discontinued operations, net of tax $ (95 ) $ — $ (95 ) $ (61 ) $ — $ (61 ) (1) ITO Income from operations excludes depreciation and amortization expenses of approximately $41 and $80 (including $7 and $14 of intangible amortization) for the three and six months ended June 30, 2015, respectively, since the business was held for sale. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net were as follows: June 30, 2016 December 31, 2015 Amounts billed or billable $ 2,209 $ 2,110 Unbilled amounts 345 289 Allowance for doubtful accounts (77 ) (80 ) Accounts Receivable, Net $ 2,477 $ 2,319 Unbilled receivables include receivables 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 June 30, 2016 and December 31, 2015 were approximately $826 and $849 , respectively. 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 receivable 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 to third parties certain accounts receivable without recourse. The accounts receivable 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 is 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 Condensed 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 its 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 Other current assets in the accompanying Condensed Consolidated Balance Sheets and were $59 and $61 at June 30, 2016 and December 31, 2015 , respectively. Under most of the arrangements, 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 receivable sold and derecognized from our balance sheet, $603 and $660 remained uncollected as of June 30, 2016 and December 31, 2015 , respectively. Accounts receivable sales were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Accounts receivable sales $ 648 $ 586 $ 1,328 $ 1,188 Deferred proceeds 59 57 130 119 Loss on sales of accounts receivable 4 3 8 6 Estimated decrease to operating cash flows (1) (34 ) (27 ) (57 ) (10 ) __________________________ (1) Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and, (iii) currency. Finance Receivables, Net 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 have been no transfers of finance receivables since the year ended December 31, 2013 . 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, 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 The principal value of finance receivables derecognized from our balance sheet was $163 and $238 (sales value of approximately $154 and $256 ) at June 30, 2016 and December 31, 2015 , respectively. Summary The lease portfolios transferred and sold were from our 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 $26 and $38 at June 30, 2016 and December 31, 2015 , respectively, and are included in Other current assets and Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. Beneficial interests of $17 and $30 at June 30, 2016 and December 31, 2015 , respectively, are held by 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 Condensed 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: Three Months Ended Six Months Ended 2016 2015 2016 2015 Impact from prior sales of finance receivables (1) $ (51 ) $ (89 ) $ (110 ) $ (194 ) Collections on beneficial interest 8 15 18 33 Estimated decrease to operating cash flows $ (43 ) $ (74 ) $ (92 ) $ (161 ) ____________________________ (1) Represents cash that would have been collected had we not sold finance receivables. Finance Receivables – Allowance for Credit Losses and Credit Quality Finance receivables include sales-type leases, direct financing leases and installment loans. 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. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. 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 (2) Total Balance at December 31, 2015 (1) $ 54 $ 17 $ 45 $ 2 $ 118 Provision 4 1 5 — 10 Charge-offs (2 ) (2 ) (2 ) — (6 ) Recoveries and other (3) 1 2 1 — 4 Balance at March 31, 2016 $ 57 $ 18 $ 49 $ 2 $ 126 Provision — 1 7 8 Charge-offs (3 ) (2 ) (3 ) — (8 ) Recoveries and other (3) — 1 (2 ) — (1 ) Balance at June 30, 2016 $ 54 $ 18 $ 51 $ 2 $ 125 Finance receivables as of June 30, 2016 collectively evaluated for impairment (4) $ 2,149 $ 389 $ 1,424 $ 64 $ 4,026 Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 4 1 5 1 11 Charge-offs — (3 ) (1 ) (1 ) (5 ) Recoveries and other (3) — — (6 ) — (6 ) Balance at March 31, 2015 $ 55 $ 18 $ 56 $ 2 $ 131 Provision 3 1 6 — 10 Charge-offs (3 ) (2 ) (5 ) — (10 ) Recoveries and other (3) (1 ) 1 3 — 3 Balance at June 30, 2015 $ 54 $ 18 $ 60 $ 2 $ 134 Finance receivables as of June 30, 2015 collectively evaluated for impairment (1),(4) $ 2,074 $ 397 $ 1,619 $ 66 $ 4,156 __________________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been revised to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. (4) Total Finance receivables exclude the allowance for credit losses of $125 and $134 at June 30, 2016 and 2015 , respectively. 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 on 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 status 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 approximately 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: June 30, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 183 $ 327 $ 93 $ 603 $ 195 $ 285 $ 91 $ 571 Government and education 554 54 6 614 575 48 7 630 Graphic arts 137 108 107 352 145 92 127 364 Industrial 85 71 24 180 89 62 22 173 Healthcare 82 48 16 146 90 46 19 155 Other 97 104 53 254 121 107 53 281 Total United States 1,138 712 299 2,149 1,215 640 319 2,174 Finance and other services 60 41 9 110 55 35 9 99 Government and education 58 7 1 66 59 7 2 68 Graphic arts 44 39 22 105 45 35 21 101 Industrial 24 13 4 41 23 12 3 38 Other 37 26 4 67 33 23 3 59 Total Canada 223 126 40 389 215 112 38 365 France 191 245 66 502 203 207 101 511 U.K./Ireland 198 83 2 283 235 91 3 329 Central (1) 207 165 23 395 206 186 25 417 Southern (2) 40 133 14 187 36 138 17 191 Nordics (3) 31 24 2 57 24 35 2 61 Total Europe 667 650 107 1,424 704 657 148 1,509 Other 41 20 3 64 41 16 1 58 Total $ 2,069 $ 1,508 $ 449 $ 4,026 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: June 30, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 9 $ 4 $ 2 $ 15 $ 588 $ 603 $ 12 Government and education 13 4 4 21 593 614 25 Graphic arts 13 1 — 14 338 352 6 Industrial 3 2 1 6 174 180 5 Healthcare 3 2 1 6 140 146 5 Other 9 2 1 12 242 254 6 Total United States 50 15 9 74 2,075 2,149 59 Canada 3 — — 3 386 389 10 France 4 — — 4 498 502 29 U.K./Ireland 2 1 — 3 280 283 1 Central (1) 3 1 1 5 390 395 8 Southern (2) 7 2 2 11 176 187 7 Nordics (3) 1 — — 1 56 57 2 Total Europe 17 4 3 24 1,400 1,424 47 Other 3 — — 3 61 64 — Total $ 73 $ 19 $ 12 $ 104 $ 3,922 $ 4,026 $ 116 December 31, 2015 (4) Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordics (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Finance Receivables, Net
Finance Receivables, Net | 6 Months Ended |
Jun. 30, 2016 | |
Financing Receivable, Net [Abstract] | |
Finance Receivables, Net | Accounts Receivable, Net Accounts receivable, net were as follows: June 30, 2016 December 31, 2015 Amounts billed or billable $ 2,209 $ 2,110 Unbilled amounts 345 289 Allowance for doubtful accounts (77 ) (80 ) Accounts Receivable, Net $ 2,477 $ 2,319 Unbilled receivables include receivables 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 June 30, 2016 and December 31, 2015 were approximately $826 and $849 , respectively. 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 receivable 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 to third parties certain accounts receivable without recourse. The accounts receivable 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 is 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 Condensed 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 its 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 Other current assets in the accompanying Condensed Consolidated Balance Sheets and were $59 and $61 at June 30, 2016 and December 31, 2015 , respectively. Under most of the arrangements, 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 receivable sold and derecognized from our balance sheet, $603 and $660 remained uncollected as of June 30, 2016 and December 31, 2015 , respectively. Accounts receivable sales were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Accounts receivable sales $ 648 $ 586 $ 1,328 $ 1,188 Deferred proceeds 59 57 130 119 Loss on sales of accounts receivable 4 3 8 6 Estimated decrease to operating cash flows (1) (34 ) (27 ) (57 ) (10 ) __________________________ (1) Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and, (iii) currency. Finance Receivables, Net 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 have been no transfers of finance receivables since the year ended December 31, 2013 . 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, 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 The principal value of finance receivables derecognized from our balance sheet was $163 and $238 (sales value of approximately $154 and $256 ) at June 30, 2016 and December 31, 2015 , respectively. Summary The lease portfolios transferred and sold were from our 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 $26 and $38 at June 30, 2016 and December 31, 2015 , respectively, and are included in Other current assets and Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. Beneficial interests of $17 and $30 at June 30, 2016 and December 31, 2015 , respectively, are held by 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 Condensed 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: Three Months Ended Six Months Ended 2016 2015 2016 2015 Impact from prior sales of finance receivables (1) $ (51 ) $ (89 ) $ (110 ) $ (194 ) Collections on beneficial interest 8 15 18 33 Estimated decrease to operating cash flows $ (43 ) $ (74 ) $ (92 ) $ (161 ) ____________________________ (1) Represents cash that would have been collected had we not sold finance receivables. Finance Receivables – Allowance for Credit Losses and Credit Quality Finance receivables include sales-type leases, direct financing leases and installment loans. 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. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. 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 (2) Total Balance at December 31, 2015 (1) $ 54 $ 17 $ 45 $ 2 $ 118 Provision 4 1 5 — 10 Charge-offs (2 ) (2 ) (2 ) — (6 ) Recoveries and other (3) 1 2 1 — 4 Balance at March 31, 2016 $ 57 $ 18 $ 49 $ 2 $ 126 Provision — 1 7 8 Charge-offs (3 ) (2 ) (3 ) — (8 ) Recoveries and other (3) — 1 (2 ) — (1 ) Balance at June 30, 2016 $ 54 $ 18 $ 51 $ 2 $ 125 Finance receivables as of June 30, 2016 collectively evaluated for impairment (4) $ 2,149 $ 389 $ 1,424 $ 64 $ 4,026 Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 4 1 5 1 11 Charge-offs — (3 ) (1 ) (1 ) (5 ) Recoveries and other (3) — — (6 ) — (6 ) Balance at March 31, 2015 $ 55 $ 18 $ 56 $ 2 $ 131 Provision 3 1 6 — 10 Charge-offs (3 ) (2 ) (5 ) — (10 ) Recoveries and other (3) (1 ) 1 3 — 3 Balance at June 30, 2015 $ 54 $ 18 $ 60 $ 2 $ 134 Finance receivables as of June 30, 2015 collectively evaluated for impairment (1),(4) $ 2,074 $ 397 $ 1,619 $ 66 $ 4,156 __________________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been revised to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. (4) Total Finance receivables exclude the allowance for credit losses of $125 and $134 at June 30, 2016 and 2015 , respectively. 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 on 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 status 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 approximately 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: June 30, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 183 $ 327 $ 93 $ 603 $ 195 $ 285 $ 91 $ 571 Government and education 554 54 6 614 575 48 7 630 Graphic arts 137 108 107 352 145 92 127 364 Industrial 85 71 24 180 89 62 22 173 Healthcare 82 48 16 146 90 46 19 155 Other 97 104 53 254 121 107 53 281 Total United States 1,138 712 299 2,149 1,215 640 319 2,174 Finance and other services 60 41 9 110 55 35 9 99 Government and education 58 7 1 66 59 7 2 68 Graphic arts 44 39 22 105 45 35 21 101 Industrial 24 13 4 41 23 12 3 38 Other 37 26 4 67 33 23 3 59 Total Canada 223 126 40 389 215 112 38 365 France 191 245 66 502 203 207 101 511 U.K./Ireland 198 83 2 283 235 91 3 329 Central (1) 207 165 23 395 206 186 25 417 Southern (2) 40 133 14 187 36 138 17 191 Nordics (3) 31 24 2 57 24 35 2 61 Total Europe 667 650 107 1,424 704 657 148 1,509 Other 41 20 3 64 41 16 1 58 Total $ 2,069 $ 1,508 $ 449 $ 4,026 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: June 30, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 9 $ 4 $ 2 $ 15 $ 588 $ 603 $ 12 Government and education 13 4 4 21 593 614 25 Graphic arts 13 1 — 14 338 352 6 Industrial 3 2 1 6 174 180 5 Healthcare 3 2 1 6 140 146 5 Other 9 2 1 12 242 254 6 Total United States 50 15 9 74 2,075 2,149 59 Canada 3 — — 3 386 389 10 France 4 — — 4 498 502 29 U.K./Ireland 2 1 — 3 280 283 1 Central (1) 3 1 1 5 390 395 8 Southern (2) 7 2 2 11 176 187 7 Nordics (3) 1 — — 1 56 57 2 Total Europe 17 4 3 24 1,400 1,424 47 Other 3 — — 3 61 64 — Total $ 73 $ 19 $ 12 $ 104 $ 3,922 $ 4,026 $ 116 December 31, 2015 (4) Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordics (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following is a summary of Inventories by major category: June 30, 2016 December 31, 2015 Finished goods $ 855 $ 792 Work-in-process 65 51 Raw materials 97 99 Total Inventories $ 1,017 $ 942 |
Investment in Affiliates, at Eq
Investment in Affiliates, at Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates, at Equity | Investment in Affiliates, at Equity Our equity in net income of unconsolidated affiliates was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Fuji Xerox $ 19 $ 25 $ 52 $ 56 Other investments 3 4 7 7 Total Equity in Net Income of Unconsolidated Affiliates $ 22 $ 29 $ 59 $ 63 Fuji Xerox Equity in net income of Fuji Xerox is affected by certain adjustments required 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. Condensed financial data of Fuji Xerox was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Summary of Operations: Revenues $ 2,450 $ 2,389 $ 5,128 $ 5,120 Costs and expenses 2,329 2,211 4,793 4,731 Income before income taxes 121 178 335 389 Income tax expense 44 63 109 129 Net Income 77 115 226 260 Less: Net income – noncontrolling interests 1 2 3 4 Net Income – Fuji Xerox $ 76 $ 113 $ 223 $ 256 Weighted Average Exchange Rate (1) 107.84 121.39 111.62 120.27 _____________________________ (1) Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring Programs
Restructuring Programs | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | Restructuring Programs During the six months ended June 30, 2016 , we recorded net restructuring and asset impairment charges of $186 , which included approximately $197 of severance costs related to headcount reductions of approximately 6,100 employees worldwide, $4 of lease cancellation costs and $2 of asset impairments. These costs were offset by $12 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives, as well as a gain of $5 from the sale of real estate impaired in prior periods. We also recorded $11 of costs during the six months ended June 30, 2016 , primarily related to professional support services associated with the implementation of the strategic transformation program. Information related to restructuring program activity during the six months ended June 30, 2016 is outlined below: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2015 $ 22 $ 2 $ — $ 24 Provision 197 4 2 203 Reversals (12 ) — (5 ) (17 ) Net Current Period Charges (1) 185 4 (3 ) 186 Charges against reserve and currency (64 ) (5 ) 3 (66 ) Balance at June 30, 2016 $ 143 $ 1 $ — $ 144 _____________________________ (1) Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown for restructuring and asset impairments charges. (2) 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. Reconciliation to the Condensed Consolidated Statements of Cash Flows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Charges against reserve $ (39 ) $ (175 ) $ (66 ) $ (212 ) Asset impairments 2 146 2 146 Effects of foreign currency and other non-cash items — (1 ) (1 ) 5 Restructuring Cash Payments $ (37 ) $ (30 ) $ (65 ) $ (61 ) The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: Three Months Ended Six Months Ended 2016 2015 2016 2015 Services (1) $ 25 $ 149 $ 62 $ 154 Document Technology 42 8 128 17 Other (4 ) — (4 ) — Total Net Restructuring Charges $ 63 $ 157 $ 186 $ 171 _____________________________ (1) The three and six months ended June 30, 2015 includes $146 of software asset impairment charges. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan Facility On March 4, 2016, Xerox Corporation entered into a $1.0 billion senior unsecured term facility. The facility was fully drawn by April 1, 2016 ( $750 was drawn on March 11, 2016 and $ 250 on April 1, 2016) and must be repaid on the earlier of 364 days or upon receipt of financing related to the separation of Xerox into two independent publicly traded companies. Refer to Note 1- Basis of Presentation for information regarding the planned Company separation. Borrowings under the facility currently bear interest at a rate of LIBOR plus 1.50% and current interest rates vary between 2.13% and 2.16% . The proceeds of the facility were used to repay maturing debt of $ 950 ($ 700 of 6.40% Senior Notes on March 15, 2016 and $ 250 of 7.20% Notes on April 1, 2016). Interest Expense and Income Interest expense and interest income were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Interest expense (1) $ 81 $ 88 $ 169 $ 177 Interest income (2) 84 89 169 181 ____________ (1) Includes Equipment financing interest as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. (2) Includes Finance income as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Interest Rate Risk Management We use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged. Fair Value Hedges As of June 30, 2016 , pay variable/receive fixed interest rate swaps with notional amounts of $300 and net asset fair value of $18 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. The following is a summary of our fair value hedges at June 30, 2016 : 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 $ 18 2.52 % 4.5 % Libor 2021 Foreign Exchange Risk Management We are a global company that is 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 At June 30, 2016 and December 31, 2015, we had outstanding forward exchange and purchased option contracts with gross notional values of $2,843 and $3,212 respectively, with terms less than 12 months. The associated currency exposures being hedged at June 30, 2016 were consistent with year-end, and there has not been any material change in our hedging strategy. Foreign Currency Cash Flow Hedges We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated expenses. The net asset/(liability) fair value of these contracts were $37 and $(1) as of June 30, 2016 and December 31, 2015 , respectively. Summary of Derivative Instruments Fair Value The following table provides a summary of the fair value amounts of our derivative instruments: Designation of Derivatives Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 39 $ 4 Other current liabilities (2 ) (4 ) Foreign currency options Other current liabilities — (1 ) Interest rate swaps Other long-term assets 18 7 Net Designated Derivative Asset $ 55 $ 6 Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 115 $ 51 Other current liabilities (12 ) (8 ) Net Undesignated Derivative Asset $ 103 $ 43 Summary of Derivatives Total Derivative Assets $ 172 $ 62 Total Derivative Liabilities (14 ) (13 ) Net Derivative Asset $ 158 $ 49 Summary of Derivative Instruments Gains (Losses) Derivative gains (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains (losses). Designated Derivative Instruments Gains (Losses) The following table provides a summary of gains (losses) on derivative instruments: Three Months Ended Six Months Ended Gain (Loss) on Derivative Instruments 2016 2015 2016 2015 Fair Value Hedges - Interest rate contracts Derivative gain (loss) recognized in interest expense $ 2 $ (4 ) $ 11 $ — Hedged item (loss) gain recognized in interest expense (2 ) 4 (11 ) — Cash Flow Hedges - Foreign exchange forward contracts and options Derivative gain (loss) recognized in OCI (effective portion) $ 41 $ (24 ) $ 57 $ 7 Derivative gain (loss) reclassified from AOCI to income - Cost of sales (effective portion) 8 — 7 (10 ) During the three and six months ended June 30, 2016 and 2015, no amount of ineffectiveness was recorded in earnings for these designated cash flow hedges and all components of each derivative’s gain (loss) was 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. At June 30, 2016 , a net after-tax gain of $33 was recorded in accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions. Non-Designated Derivative Instruments Gains (Losses) Non-designated derivative instruments are primarily instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges since there is a natural offset for the re-measurement of the underlying foreign currency-denominated asset or liability. The following table provides a summary of gains on non-designated derivative instruments: Derivatives NOT Designated as Hedging Instruments Three Months Ended Six Months Ended Location of Derivative Gain (Loss) 2016 2015 2016 2015 Foreign exchange contracts – forwards Other expense – Currency gains (loss), net $ 78 $ (50 ) $ 149 $ (35 ) Net currency gains and losses are included in Other expenses, net and include the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives as well as the re-measurement of foreign currency-denominated assets and liabilities. For the three and six months ended June 30, 2016 , currency gains (losses), net were $3 and $(1) , respectively. For the three and six months ended June 30, 2015 , currency gains (losses), net were $5 and $(1) , respectively. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
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 measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. June 30, 2016 December 31, 2015 Assets: Foreign exchange contracts - forwards $ 154 $ 55 Interest rate swaps 18 7 Deferred compensation investments in cash surrender life insurance 94 92 Deferred compensation investments in mutual funds 35 33 Total $ 301 $ 187 Liabilities: Foreign exchange contracts - forwards $ 14 $ 12 Foreign currency options — 1 Deferred compensation plan liabilities 127 125 Total $ 141 $ 138 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 Not Measured at Fair Value on a Recurring Basis The estimated fair values of our other financial assets and liabilities not measured at fair value on a recurring basis were as follows: June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,203 $ 1,203 $ 1,368 $ 1,368 Accounts receivable, net 2,477 2,477 2,319 2,319 Short-term debt 2,029 2,048 985 976 Long-term debt 5,355 5,394 6,354 6,395 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 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 | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows: Three Months Ended June 30, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 10 $ 9 $ 2 $ 2 Interest cost 35 38 53 53 8 8 Expected return on plan assets (36 ) (38 ) (69 ) (74 ) — — Recognized net actuarial loss 7 6 17 21 — 1 Amortization of prior service credit (1 ) — (1 ) (2 ) (1 ) (8 ) Recognized settlement loss 17 18 — — — — Recognized curtailment gain — — — — — (22 ) Defined Benefit Plans 23 25 10 7 9 (19 ) Defined contribution plans 15 15 10 11 n/a n/a Net Periodic Benefit Cost 38 40 20 18 9 (19 ) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): Net actuarial loss (gain) (2) 134 (140 ) — (2 ) (34 ) (58 ) Amortization of prior service credit 1 — 1 2 1 8 Amortization of net actuarial loss (24 ) (24 ) (17 ) (21 ) — (1 ) Curtailment gain - recognition of net prior service credit — — — — — 22 Total Recognized in Other Comprehensive Loss (Income) (3) 111 (164 ) (16 ) (21 ) (33 ) (29 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) $ 149 $ (124 ) $ 4 $ (3 ) $ (24 ) $ (48 ) Six Months Ended June 30, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2016 2015 2016 2015 2016 2015 Service cost $ 2 $ 2 $ 16 $ 17 $ 3 $ 4 Interest cost 73 76 105 106 16 17 Expected return on plan assets (76 ) (76 ) (133 ) (147 ) — — Recognized net actuarial loss 12 13 34 40 1 1 Amortization of prior service credit (1 ) (1 ) (2 ) (2 ) (2 ) (15 ) Recognized settlement loss 46 45 — — — — Recognized curtailment gain — — — — — (22 ) Defined Benefit Plans 56 59 20 14 18 (15 ) Defined contribution plans (1) 29 31 20 20 n/a n/a Net Periodic Benefit Cost 85 90 40 34 18 (15 ) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): Net actuarial loss (gain) (2) 257 (52 ) — (2 ) (34 ) (58 ) Amortization of prior service credit 1 1 2 2 2 15 Amortization of net actuarial loss (58 ) (58 ) (34 ) (40 ) (1 ) (1 ) Curtailment gain - recognition of net prior service credit — — — — — 22 Total Recognized in Other Comprehensive Loss (Income) (3) 200 (109 ) (32 ) (40 ) (33 ) (22 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) $ 285 $ (19 ) $ 8 $ (6 ) $ (15 ) $ (37 ) _____________________________ (1) The six months ended June 30, 2015 excludes defined contribution expense of $4 related to our ITO business, which was reported as a discontinued operation up to its sale on June 30, 2015. Refer to Note 4 - Divestitures for additional information regarding this sale. (2) The net actuarial loss (gain) for U.S. Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements; and (ii) adjustments for the actuarial valuation results based on January 1 st plan census data. (3) Amounts represent the pre-tax effect included within Other comprehensive loss. Refer to Note 15 - Other Comprehensive (Loss) Income for related tax effects and the after-tax amounts. Contributions The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Six Months Ended June 30, Year Ended December 31, 2016 2015 Est. 2016 (1) 2015 U.S. Plans $ 13 $ 13 $ 25 $ 177 Non-U.S. Plans 58 85 115 132 Total $ 71 $ 98 $ 140 $ 309 Retiree Health $ 30 $ 29 $ 65 $ 63 ___________ (1) These full year estimates are based on current expectations that we will make additional 2016 cash contributions of $69 ( $12 U.S. and $57 Non-U.S) to our defined benefit pension plans and $35 to our retiree health benefit plans. The 2016 expected pension plan contributions do not include any planned contributions for our domestic tax-qualified defined benefit plans because none are required to meet the minimum funding requirements. However, the desirability of making additional contributions will continue to be assessed, and we may voluntarily decide to contribute to these plans later in 2016. Plan Amendments In June 2015, we amended our U.S. Retiree Health Plan to eliminate future benefit accruals for active salaried employees effective December 31, 2015. There was no change in benefits for union employees or existing retirees or employees that retire before December 31, 2015. As a result of this plan amendment, we recognized a pre-tax curtailment gain of $ 22 in the second quarter 2015. The gain represents the recognition of deferred gains from other prior-year amendments (“prior service credits”) as a result of the discontinuation of the future benefit or service accrual period for active salaried employees. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Stock Additional Paid-in Capital Retained Earnings AOCL (3) Xerox Shareholders’ Equity Non-controlling Interests Total Equity Balance at December 31, 2015 $ 1,013 $ 3,017 $ 9,686 $ (4,642 ) $ 9,074 $ 43 $ 9,117 Comprehensive income, net — — 189 56 245 4 249 Cash dividends declared - common (1) — — (159 ) — (159 ) — (159 ) Cash dividends declared - preferred (2) — — (12 ) — (12 ) — (12 ) Stock option and incentive plans, net — 30 — — 30 — 30 Distributions to noncontrolling interests — — — — — (9 ) (9 ) Balance at June 30, 2016 $ 1,013 $ 3,047 $ 9,704 $ (4,586 ) $ 9,178 $ 38 $ 9,216 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings AOCL (3) Xerox Shareholders’ Equity Non- controlling Interests Total Equity Balance at December 31, 2014 $ 1,124 $ 4,283 $ (105 ) $ 9,535 $ (4,159 ) $ 10,678 $ 75 $ 10,753 Comprehensive income (loss), net — — — 237 (140 ) 97 10 107 Cash dividends declared - common (1) — — — (155 ) — (155 ) — (155 ) Cash dividends declared - preferred (2) — — — (12 ) — (12 ) — (12 ) Stock option and incentive plans, net 3 54 — — — 57 — 57 Payments to acquire treasury stock, including fees — — (611 ) — — (611 ) — (611 ) Cancellation of treasury stock (30 ) (370 ) 400 — — — — — Distributions to noncontrolling interests — — — — — — (42 ) (42 ) Balance at June 30, 2015 $ 1,097 $ 3,967 $ (316 ) $ 9,605 $ (4,299 ) $ 10,054 $ 43 $ 10,097 _____________________________ (1) Cash dividends declared on common stock of $0.0775 per share in each quarter of 2016 and $0.07 per share in each quarter of 2015 . (2) Cash dividends declared on preferred stock of $20.00 per share in each quarter of 2016 and 2015 . (3) Refer to Note 15 - Other Comprehensive (Loss) Income for components of AOCL. Treasury Stock There were no repurchases of Xerox Common Stock pursuant to Board authorized share repurchase programs during the second quarter 2016. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income (Loss) [Abstract] | |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income Other Comprehensive (Loss) Income is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments (Losses) Gains $ (75 ) $ (77 ) $ 191 $ 194 $ 118 $ 114 $ (315 ) $ (315 ) Unrealized Gains (Losses): Changes in fair value of cash flow hedges - gains (losses) 41 30 (24 ) (18 ) 57 39 7 7 Changes in cash flow hedges reclassed to earnings (1) (8 ) (5 ) — (1 ) (7 ) (5 ) 10 4 Other (losses) gains (1 ) (1 ) 1 — (1 ) (1 ) — (1 ) Net Unrealized Gains (Losses) 32 24 (23 ) (19 ) 49 33 17 10 Defined Benefit Plans (Losses) Gains: Net actuarial (losses) gains (100 ) (62 ) 200 123 (223 ) (138 ) 112 69 Prior service amortization (2) (3 ) (2 ) (32 ) (19 ) (5 ) (3 ) (40 ) (24 ) Actuarial loss amortization/settlement (2) 41 28 46 32 93 63 99 67 Fuji Xerox changes in defined benefit plans, net (3) (25 ) (25 ) 8 8 (100 ) (100 ) 27 27 Other gains (losses) (4) 81 81 (76 ) (77 ) 86 86 27 26 Changes in Defined Benefit Plans (Losses) Gains (6 ) 20 146 67 (149 ) (92 ) 225 165 Other Comprehensive (Loss) Income (49 ) (33 ) 314 242 18 55 (73 ) (140 ) Less: Other comprehensive (loss) income attributable to noncontrolling interests (1 ) (1 ) 1 1 (1 ) (1 ) — — Other Comprehensive (Loss) Income Attributable to Xerox $ (48 ) $ (32 ) $ 313 $ 241 $ 19 $ 56 $ (73 ) $ (140 ) _____________________________ (1) Reclassified to Cost of sales - refer to Note 11 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 13 - 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: June 30, 2016 December 31, 2015 Cumulative translation adjustments $ (2,287 ) $ (2,402 ) Other unrealized gains, net 34 1 Benefit plans net actuarial losses and prior service credits (1) (2,333 ) (2,241 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,586 ) $ (4,642 ) _____________________________ (1) Includes our share of Fuji Xerox. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
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): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Basic Earnings per Share: Net income from continuing operations attributable to Xerox $ 155 $ 107 $ 189 $ 298 Accrued dividends on preferred stock (6 ) (6 ) (12 ) (12 ) Net Income From Continuing Operations Available to Common Shareholders 149 101 177 286 Net loss from discontinued operations attributable to Xerox — (95 ) — (61 ) Net Income Available to Common Shareholders $ 149 $ 6 $ 177 $ 225 Weighted average common shares outstanding 1,013,284 1,087,720 1,013,164 1,098,370 Basic Earnings per Share: Continuing operations $ 0.15 $ 0.09 $ 0.17 $ 0.26 Discontinued operations — (0.08 ) — (0.06 ) Total $ 0.15 $ 0.01 $ 0.17 $ 0.20 Diluted Earnings per Share: Net income from continuing operations attributable to Xerox $ 155 $ 107 $ 189 $ 298 Accrued dividends on preferred stock (6 ) (6 ) (12 ) (12 ) Net Income From Continuing Operations Available to Common Shareholders $ 149 $ 101 $ 177 $ 286 Net loss from discontinued operations attributable to Xerox — (95 ) — (61 ) Net Income Available to Common Shareholders $ 149 $ 6 $ 177 $ 225 Weighted average common shares outstanding - Basic 1,013,284 1,087,720 1,013,164 1,098,370 Common shares issuable with respect to: Stock options 822 1,409 837 1,615 Restricted stock and performance shares 7,915 16,140 7,156 15,300 Convertible preferred stock — — — — Weighted Average Common Shares Outstanding - Diluted 1,022,021 1,105,269 1,021,157 1,115,285 Diluted Earnings per Share: Continuing operations $ 0.15 $ 0.09 $ 0.17 $ 0.26 Discontinued operations — (0.08 ) — (0.06 ) Total $ 0.15 $ 0.01 $ 0.17 $ 0.20 The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive: Stock options 1,944 2,590 1,930 2,384 Restricted stock and performance shares 15,909 13,981 16,669 14,820 Convertible preferred stock 26,966 26,966 26,966 26,966 Total Anti-Dilutive Securities 44,819 43,537 45,565 44,170 Dividends per Common Share $ 0.0775 $ 0.0700 $ 0.1550 $ 0.1400 |
Contingencies and Litigation
Contingencies and Litigation | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Litigation | Contingencies and Litigation Legal Matters We are involved in a variety of claims, lawsuits, investigations and proceedings concerning securities law, intellectual property law, environmental law, employment law, commercial and contracts law, the Employee Retirement Income Security Act (ERISA) and regulatory matters. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. Brazil 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, gross revenue taxes and import taxes and duties. We are disputing these tax matters and intend to vigorously defend our position. 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 June 30, 2016 , the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of any related interest, amounted to approximately $751 , with the increase from December 31, 2015 balance of approximately $577 primarily related to currency and interest. With respect to the unreserved balance of $751 , 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 June 30, 2016 , we had $87 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 and surety bonds of approximately $143 and $88 , respectively, 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 State of Texas v. Xerox Corporation, Xerox State Healthcare, LLC, and ACS State Healthcare, LLC: 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, the "Xerox Defendants") 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 Xerox Defendants 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. The Xerox Defendants filed their Answer in June, 2014 denying all allegations. The Xerox Defendants will continue to vigorously defend themselves 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. Other Matters On January 5, 2016, the Consumer Financial Protection Bureau (CFPB) notified Xerox Education Services, Inc. (XES) that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (NORA) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against XES, alleging that XES violated the Consumer Financial Protection Act’s prohibition of unfair practices. Should the CFPB commence an action, it may seek restitution, civil monetary penalties, injunctive relief or other corrective action. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action is recommended or commenced. This notice stems from an inquiry that commenced in 2014 when the Company, through XES, received and responded to a Civil Investigative Demand containing a broad request for information. During this process, XES self-disclosed to the Department of Education and the CFPB certain adjustments it had become aware that had not been timely made relating to its servicing of a small percentage of third-party student loans under outsourcing arrangements for various financial institutions. The CFPB and the Department of Education, as well as certain states' attorney general offices and other regulatory agencies, began similar reviews. The Company has cooperated and continues to fully cooperate with all regulatory agencies, and XES has submitted its NORA response. The Company cannot provide assurance that the CFPB or another party will not ultimately commence a legal action against XES in this matter nor is the Company able to predict the likely outcome of the investigations into this matter. Other Contingencies We have issued or provided the following guarantees as of June 30, 2016 : • $367 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. • $783 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. 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 June 30, 2016 , we serviced a FFEL portfolio of approximately 1.7 million loans with an outstanding principal balance of approximately $25.5 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 June 30, 2016 , other current liabilities included reserves of approximately $4 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. Indemnifications We have indemnified, subject to certain deductibles and limits, the purchasers of businesses or divested assets for the occurrence of specified events under certain of our divestiture agreements. Where appropriate, an obligation for such indemnifications is recorded as a liability. Since the obligated amounts of these types of indemnifications are often not explicitly stated and/or are contingent on the occurrence of future events, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have not historically made significant payments for these indemnifications. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets are achieved post-closing. We have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. Contingent obligations related to indemnifications arising from our divestitures and contingent consideration provided for by our acquisitions are not expected to be material to our financial position, results of operations or cash flows. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating segment revenues and profitability | Operating segment revenues and profitability were as follows: Three Months Ended Six Months Ended Segment Revenue Segment Profit (Loss) Segment Revenue Segment Profit(Loss) 2016 Services $ 2,470 $ 236 $ 4,952 $ 426 Document Technology 1,752 221 3,391 388 Other 163 (80 ) 323 (146 ) Total $ 4,385 $ 377 $ 8,666 $ 668 2015 Services $ 2,526 $ 181 $ 4,993 $ 368 Document Technology 1,880 235 3,710 467 Other 184 (62 ) 356 (109 ) Total $ 4,590 $ 354 $ 9,059 $ 726 |
Reconciliation to pre-tax income (loss) | Three Months Ended Six Months Ended Reconciliation to Pre-tax Income 2016 2015 2016 2015 Segment Profit $ 377 $ 354 $ 668 $ 726 Reconciling items: Restructuring and related costs (71 ) (157 ) (197 ) (171 ) Restructuring charges of Fuji Xerox (1 ) (1 ) (1 ) (2 ) Business transformation costs (1) — (3 ) (1 ) (7 ) Amortization of intangible assets (78 ) (79 ) (167 ) (156 ) Non-service retirement-related costs (2) (32 ) (10 ) (78 ) (52 ) Equity in net income of unconsolidated affiliates (22 ) (29 ) (59 ) (63 ) Separation costs (3) (28 ) — (36 ) — Other — (1 ) — — Pre-tax Income $ 145 $ 74 $ 129 $ 275 __________________________ (1) 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. (2) Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 13 - Employee Benefit Plans for details regarding these elements. (3) Separation costs are expenses incurred in connection with Xerox's planned separation into two independent, publicly-traded companies. These costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services. Refer to Note 1 - Basis of Presentation for additional information regarding Xerox's planned separation. |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Financial Information - Discontinued Operations | Summarized financial information for our Discontinued Operations is as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 ITO Other Total ITO Other Total Revenues $ 308 $ — $ 308 $ 619 $ — $ 619 Income from operations (1) 43 — 43 104 — 104 Loss on disposal (68 ) — (68 ) (72 ) — (72 ) Net (loss) income before income taxes $ (25 ) $ — $ (25 ) $ 32 $ — $ 32 Income tax expense (70 ) — (70 ) (93 ) — (93 ) Loss from discontinued operations, net of tax $ (95 ) $ — $ (95 ) $ (61 ) $ — $ (61 ) (1) ITO Income from operations excludes depreciation and amortization expenses of approximately $41 and $80 (including $7 and $14 of intangible amortization) for the three and six months ended June 30, 2015, respectively, since the business was held for sale. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable, net were as follows: June 30, 2016 December 31, 2015 Amounts billed or billable $ 2,209 $ 2,110 Unbilled amounts 345 289 Allowance for doubtful accounts (77 ) (80 ) Accounts Receivable, Net $ 2,477 $ 2,319 |
Schedule of accounts receivables sales | Accounts receivable sales were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Accounts receivable sales $ 648 $ 586 $ 1,328 $ 1,188 Deferred proceeds 59 57 130 119 Loss on sales of accounts receivable 4 3 8 6 Estimated decrease to operating cash flows (1) (34 ) (27 ) (57 ) (10 ) __________________________ (1) Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and, (iii) currency. |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financing Receivable, Net [Abstract] | |
Finance Receivables Sales Activity | The following is a summary of our prior sales activity. Year Ended December 31, 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 |
Finance Receivables Sales Impact on Operating Cash Flows | The net impact from the sales of finance receivables on operating cash flows is summarized below: Three Months Ended Six Months Ended 2016 2015 2016 2015 Impact from prior sales of finance receivables (1) $ (51 ) $ (89 ) $ (110 ) $ (194 ) Collections on beneficial interest 8 15 18 33 Estimated decrease to operating cash flows $ (43 ) $ (74 ) $ (92 ) $ (161 ) ____________________________ (1) Represents cash that would have been collected had we not sold finance receivables. |
Allowance for Credit Losses on Financing 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 (2) Total Balance at December 31, 2015 (1) $ 54 $ 17 $ 45 $ 2 $ 118 Provision 4 1 5 — 10 Charge-offs (2 ) (2 ) (2 ) — (6 ) Recoveries and other (3) 1 2 1 — 4 Balance at March 31, 2016 $ 57 $ 18 $ 49 $ 2 $ 126 Provision — 1 7 8 Charge-offs (3 ) (2 ) (3 ) — (8 ) Recoveries and other (3) — 1 (2 ) — (1 ) Balance at June 30, 2016 $ 54 $ 18 $ 51 $ 2 $ 125 Finance receivables as of June 30, 2016 collectively evaluated for impairment (4) $ 2,149 $ 389 $ 1,424 $ 64 $ 4,026 Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 4 1 5 1 11 Charge-offs — (3 ) (1 ) (1 ) (5 ) Recoveries and other (3) — — (6 ) — (6 ) Balance at March 31, 2015 $ 55 $ 18 $ 56 $ 2 $ 131 Provision 3 1 6 — 10 Charge-offs (3 ) (2 ) (5 ) — (10 ) Recoveries and other (3) (1 ) 1 3 — 3 Balance at June 30, 2015 $ 54 $ 18 $ 60 $ 2 $ 134 Finance receivables as of June 30, 2015 collectively evaluated for impairment (1),(4) $ 2,074 $ 397 $ 1,619 $ 66 $ 4,156 __________________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been revised to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. (4) Total Finance receivables exclude the allowance for credit losses of $125 and $134 at June 30, 2016 and 2015 , respectively. |
Financing Receivable Credit Quality Indicators | Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: June 30, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 183 $ 327 $ 93 $ 603 $ 195 $ 285 $ 91 $ 571 Government and education 554 54 6 614 575 48 7 630 Graphic arts 137 108 107 352 145 92 127 364 Industrial 85 71 24 180 89 62 22 173 Healthcare 82 48 16 146 90 46 19 155 Other 97 104 53 254 121 107 53 281 Total United States 1,138 712 299 2,149 1,215 640 319 2,174 Finance and other services 60 41 9 110 55 35 9 99 Government and education 58 7 1 66 59 7 2 68 Graphic arts 44 39 22 105 45 35 21 101 Industrial 24 13 4 41 23 12 3 38 Other 37 26 4 67 33 23 3 59 Total Canada 223 126 40 389 215 112 38 365 France 191 245 66 502 203 207 101 511 U.K./Ireland 198 83 2 283 235 91 3 329 Central (1) 207 165 23 395 206 186 25 417 Southern (2) 40 133 14 187 36 138 17 191 Nordics (3) 31 24 2 57 24 35 2 61 Total Europe 667 650 107 1,424 704 657 148 1,509 Other 41 20 3 64 41 16 1 58 Total $ 2,069 $ 1,508 $ 449 $ 4,026 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Finance Receivables Aging | The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: June 30, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 9 $ 4 $ 2 $ 15 $ 588 $ 603 $ 12 Government and education 13 4 4 21 593 614 25 Graphic arts 13 1 — 14 338 352 6 Industrial 3 2 1 6 174 180 5 Healthcare 3 2 1 6 140 146 5 Other 9 2 1 12 242 254 6 Total United States 50 15 9 74 2,075 2,149 59 Canada 3 — — 3 386 389 10 France 4 — — 4 498 502 29 U.K./Ireland 2 1 — 3 280 283 1 Central (1) 3 1 1 5 390 395 8 Southern (2) 7 2 2 11 176 187 7 Nordics (3) 1 — — 1 56 57 2 Total Europe 17 4 3 24 1,400 1,424 47 Other 3 — — 3 61 64 — Total $ 73 $ 19 $ 12 $ 104 $ 3,922 $ 4,026 $ 116 December 31, 2015 (4) Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordics (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | The following is a summary of Inventories by major category: June 30, 2016 December 31, 2015 Finished goods $ 855 $ 792 Work-in-process 65 51 Raw materials 97 99 Total Inventories $ 1,017 $ 942 |
Investment in Affiliates, at 28
Investment in Affiliates, at Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in net income of unconsolidated affiliates | Our equity in net income of unconsolidated affiliates was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Fuji Xerox $ 19 $ 25 $ 52 $ 56 Other investments 3 4 7 7 Total Equity in Net Income of Unconsolidated Affiliates $ 22 $ 29 $ 59 $ 63 |
Condensed Financial Information Of Equity Investment - Fuji Xerox | Condensed financial data of Fuji Xerox was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Summary of Operations: Revenues $ 2,450 $ 2,389 $ 5,128 $ 5,120 Costs and expenses 2,329 2,211 4,793 4,731 Income before income taxes 121 178 335 389 Income tax expense 44 63 109 129 Net Income 77 115 226 260 Less: Net income – noncontrolling interests 1 2 3 4 Net Income – Fuji Xerox $ 76 $ 113 $ 223 $ 256 Weighted Average Exchange Rate (1) 107.84 121.39 111.62 120.27 _____________________________ (1) Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program Activity | Information related to restructuring program activity during the six months ended June 30, 2016 is outlined below: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2015 $ 22 $ 2 $ — $ 24 Provision 197 4 2 203 Reversals (12 ) — (5 ) (17 ) Net Current Period Charges (1) 185 4 (3 ) 186 Charges against reserve and currency (64 ) (5 ) 3 (66 ) Balance at June 30, 2016 $ 143 $ 1 $ — $ 144 _____________________________ (1) Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown for restructuring and asset impairments charges. (2) 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. |
Reconciliation to the Condensed Consolidated Statements Of Cash Flows | Reconciliation to the Condensed Consolidated Statements of Cash Flows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Charges against reserve $ (39 ) $ (175 ) $ (66 ) $ (212 ) Asset impairments 2 146 2 146 Effects of foreign currency and other non-cash items — (1 ) (1 ) 5 Restructuring Cash Payments $ (37 ) $ (30 ) $ (65 ) $ (61 ) |
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: Three Months Ended Six Months Ended 2016 2015 2016 2015 Services (1) $ 25 $ 149 $ 62 $ 154 Document Technology 42 8 128 17 Other (4 ) — (4 ) — Total Net Restructuring Charges $ 63 $ 157 $ 186 $ 171 _____________________________ (1) The three and six months ended June 30, 2015 includes $146 of software asset impairment charges. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Interest Expense And Interest Income | Interest expense and interest income were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Interest expense (1) $ 81 $ 88 $ 169 $ 177 Interest income (2) 84 89 169 181 ____________ (1) Includes Equipment financing interest as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. (2) Includes Finance income as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following is a summary of our fair value hedges at June 30, 2016 : 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 $ 18 2.52 % 4.5 % Libor 2021 |
Summary of Derivative Instruments Fair Value | Summary of Derivative Instruments Fair Value The following table provides a summary of the fair value amounts of our derivative instruments: Designation of Derivatives Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 39 $ 4 Other current liabilities (2 ) (4 ) Foreign currency options Other current liabilities — (1 ) Interest rate swaps Other long-term assets 18 7 Net Designated Derivative Asset $ 55 $ 6 Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 115 $ 51 Other current liabilities (12 ) (8 ) Net Undesignated Derivative Asset $ 103 $ 43 Summary of Derivatives Total Derivative Assets $ 172 $ 62 Total Derivative Liabilities (14 ) (13 ) Net Derivative Asset $ 158 $ 49 |
Derivative Instruments, Gain (Loss) | The following table provides a summary of gains (losses) on derivative instruments: Three Months Ended Six Months Ended Gain (Loss) on Derivative Instruments 2016 2015 2016 2015 Fair Value Hedges - Interest rate contracts Derivative gain (loss) recognized in interest expense $ 2 $ (4 ) $ 11 $ — Hedged item (loss) gain recognized in interest expense (2 ) 4 (11 ) — Cash Flow Hedges - Foreign exchange forward contracts and options Derivative gain (loss) recognized in OCI (effective portion) $ 41 $ (24 ) $ 57 $ 7 Derivative gain (loss) reclassified from AOCI to income - Cost of sales (effective portion) 8 — 7 (10 ) |
Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses) | The following table provides a summary of gains on non-designated derivative instruments: Derivatives NOT Designated as Hedging Instruments Three Months Ended Six Months Ended Location of Derivative Gain (Loss) 2016 2015 2016 2015 Foreign exchange contracts – forwards Other expense – Currency gains (loss), net $ 78 $ (50 ) $ 149 $ (35 ) Net currency gains and losses are included in Other expenses, net and include the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives as well as the re-measurement of foreign currency-denominated assets and liabilities. For the three and six months ended June 30, 2016 , currency gains (losses), net were $3 and $(1) , respectively. For the three and six months ended June 30, 2015 , currency gains (losses), net were $5 and $(1) , respectively. |
Fair Value of Financial Asset32
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial assets and liabilities | The following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. June 30, 2016 December 31, 2015 Assets: Foreign exchange contracts - forwards $ 154 $ 55 Interest rate swaps 18 7 Deferred compensation investments in cash surrender life insurance 94 92 Deferred compensation investments in mutual funds 35 33 Total $ 301 $ 187 Liabilities: Foreign exchange contracts - forwards $ 14 $ 12 Foreign currency options — 1 Deferred compensation plan liabilities 127 125 Total $ 141 $ 138 |
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 not measured at fair value on a recurring basis were as follows: June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,203 $ 1,203 $ 1,368 $ 1,368 Accounts receivable, net 2,477 2,477 2,319 2,319 Short-term debt 2,029 2,048 985 976 Long-term debt 5,355 5,394 6,354 6,395 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit and Retiree Health Pension Plans, actual and expected cash contributions | Contributions The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Six Months Ended June 30, Year Ended December 31, 2016 2015 Est. 2016 (1) 2015 U.S. Plans $ 13 $ 13 $ 25 $ 177 Non-U.S. Plans 58 85 115 132 Total $ 71 $ 98 $ 140 $ 309 Retiree Health $ 30 $ 29 $ 65 $ 63 ___________ (1) These full year estimates are based on current expectations that we will make additional 2016 cash contributions of $69 ( $12 U.S. and $57 Non-U.S) to our defined benefit pension plans and $35 to our retiree health benefit plans. |
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: Three Months Ended June 30, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 10 $ 9 $ 2 $ 2 Interest cost 35 38 53 53 8 8 Expected return on plan assets (36 ) (38 ) (69 ) (74 ) — — Recognized net actuarial loss 7 6 17 21 — 1 Amortization of prior service credit (1 ) — (1 ) (2 ) (1 ) (8 ) Recognized settlement loss 17 18 — — — — Recognized curtailment gain — — — — — (22 ) Defined Benefit Plans 23 25 10 7 9 (19 ) Defined contribution plans 15 15 10 11 n/a n/a Net Periodic Benefit Cost 38 40 20 18 9 (19 ) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): Net actuarial loss (gain) (2) 134 (140 ) — (2 ) (34 ) (58 ) Amortization of prior service credit 1 — 1 2 1 8 Amortization of net actuarial loss (24 ) (24 ) (17 ) (21 ) — (1 ) Curtailment gain - recognition of net prior service credit — — — — — 22 Total Recognized in Other Comprehensive Loss (Income) (3) 111 (164 ) (16 ) (21 ) (33 ) (29 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) $ 149 $ (124 ) $ 4 $ (3 ) $ (24 ) $ (48 ) Six Months Ended June 30, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2016 2015 2016 2015 2016 2015 Service cost $ 2 $ 2 $ 16 $ 17 $ 3 $ 4 Interest cost 73 76 105 106 16 17 Expected return on plan assets (76 ) (76 ) (133 ) (147 ) — — Recognized net actuarial loss 12 13 34 40 1 1 Amortization of prior service credit (1 ) (1 ) (2 ) (2 ) (2 ) (15 ) Recognized settlement loss 46 45 — — — — Recognized curtailment gain — — — — — (22 ) Defined Benefit Plans 56 59 20 14 18 (15 ) Defined contribution plans (1) 29 31 20 20 n/a n/a Net Periodic Benefit Cost 85 90 40 34 18 (15 ) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): Net actuarial loss (gain) (2) 257 (52 ) — (2 ) (34 ) (58 ) Amortization of prior service credit 1 1 2 2 2 15 Amortization of net actuarial loss (58 ) (58 ) (34 ) (40 ) (1 ) (1 ) Curtailment gain - recognition of net prior service credit — — — — — 22 Total Recognized in Other Comprehensive Loss (Income) (3) 200 (109 ) (32 ) (40 ) (33 ) (22 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) $ 285 $ (19 ) $ 8 $ (6 ) $ (15 ) $ (37 ) _____________________________ (1) The six months ended June 30, 2015 excludes defined contribution expense of $4 related to our ITO business, which was reported as a discontinued operation up to its sale on June 30, 2015. Refer to Note 4 - Divestitures for additional information regarding this sale. (2) The net actuarial loss (gain) for U.S. Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements; and (ii) adjustments for the actuarial valuation results based on January 1 st plan census data. (3) Amounts represent the pre-tax effect included within Other comprehensive loss. Refer to Note 15 - Other Comprehensive (Loss) Income for related tax effects and the after-tax amounts. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Common Stock Additional Paid-in Capital Retained Earnings AOCL (3) Xerox Shareholders’ Equity Non-controlling Interests Total Equity Balance at December 31, 2015 $ 1,013 $ 3,017 $ 9,686 $ (4,642 ) $ 9,074 $ 43 $ 9,117 Comprehensive income, net — — 189 56 245 4 249 Cash dividends declared - common (1) — — (159 ) — (159 ) — (159 ) Cash dividends declared - preferred (2) — — (12 ) — (12 ) — (12 ) Stock option and incentive plans, net — 30 — — 30 — 30 Distributions to noncontrolling interests — — — — — (9 ) (9 ) Balance at June 30, 2016 $ 1,013 $ 3,047 $ 9,704 $ (4,586 ) $ 9,178 $ 38 $ 9,216 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings AOCL (3) Xerox Shareholders’ Equity Non- controlling Interests Total Equity Balance at December 31, 2014 $ 1,124 $ 4,283 $ (105 ) $ 9,535 $ (4,159 ) $ 10,678 $ 75 $ 10,753 Comprehensive income (loss), net — — — 237 (140 ) 97 10 107 Cash dividends declared - common (1) — — — (155 ) — (155 ) — (155 ) Cash dividends declared - preferred (2) — — — (12 ) — (12 ) — (12 ) Stock option and incentive plans, net 3 54 — — — 57 — 57 Payments to acquire treasury stock, including fees — — (611 ) — — (611 ) — (611 ) Cancellation of treasury stock (30 ) (370 ) 400 — — — — — Distributions to noncontrolling interests — — — — — — (42 ) (42 ) Balance at June 30, 2015 $ 1,097 $ 3,967 $ (316 ) $ 9,605 $ (4,299 ) $ 10,054 $ 43 $ 10,097 _____________________________ (1) Cash dividends declared on common stock of $0.0775 per share in each quarter of 2016 and $0.07 per share in each quarter of 2015 . (2) Cash dividends declared on preferred stock of $20.00 per share in each quarter of 2016 and 2015 . (3) Refer to Note 15 - Other Comprehensive (Loss) Income for components of AOCL. |
Other Comprehensive Income (L35
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Comprehensive Income (Loss) | Other Comprehensive (Loss) Income is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments (Losses) Gains $ (75 ) $ (77 ) $ 191 $ 194 $ 118 $ 114 $ (315 ) $ (315 ) Unrealized Gains (Losses): Changes in fair value of cash flow hedges - gains (losses) 41 30 (24 ) (18 ) 57 39 7 7 Changes in cash flow hedges reclassed to earnings (1) (8 ) (5 ) — (1 ) (7 ) (5 ) 10 4 Other (losses) gains (1 ) (1 ) 1 — (1 ) (1 ) — (1 ) Net Unrealized Gains (Losses) 32 24 (23 ) (19 ) 49 33 17 10 Defined Benefit Plans (Losses) Gains: Net actuarial (losses) gains (100 ) (62 ) 200 123 (223 ) (138 ) 112 69 Prior service amortization (2) (3 ) (2 ) (32 ) (19 ) (5 ) (3 ) (40 ) (24 ) Actuarial loss amortization/settlement (2) 41 28 46 32 93 63 99 67 Fuji Xerox changes in defined benefit plans, net (3) (25 ) (25 ) 8 8 (100 ) (100 ) 27 27 Other gains (losses) (4) 81 81 (76 ) (77 ) 86 86 27 26 Changes in Defined Benefit Plans (Losses) Gains (6 ) 20 146 67 (149 ) (92 ) 225 165 Other Comprehensive (Loss) Income (49 ) (33 ) 314 242 18 55 (73 ) (140 ) Less: Other comprehensive (loss) income attributable to noncontrolling interests (1 ) (1 ) 1 1 (1 ) (1 ) — — Other Comprehensive (Loss) Income Attributable to Xerox $ (48 ) $ (32 ) $ 313 $ 241 $ 19 $ 56 $ (73 ) $ (140 ) _____________________________ (1) Reclassified to Cost of sales - refer to Note 11 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 13 - Employee Benefit Plans for additional information. (3) Represents our share of Fuji Xerox's benefit plan changes. (4) Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL. |
Schedule of Accumulated Other Comprehensive Loss | AOCL is comprised of the following: June 30, 2016 December 31, 2015 Cumulative translation adjustments $ (2,287 ) $ (2,402 ) Other unrealized gains, net 34 1 Benefit plans net actuarial losses and prior service credits (1) (2,333 ) (2,241 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,586 ) $ (4,642 ) _____________________________ (1) Includes our share of Fuji Xerox. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Basic Earnings per Share: Net income from continuing operations attributable to Xerox $ 155 $ 107 $ 189 $ 298 Accrued dividends on preferred stock (6 ) (6 ) (12 ) (12 ) Net Income From Continuing Operations Available to Common Shareholders 149 101 177 286 Net loss from discontinued operations attributable to Xerox — (95 ) — (61 ) Net Income Available to Common Shareholders $ 149 $ 6 $ 177 $ 225 Weighted average common shares outstanding 1,013,284 1,087,720 1,013,164 1,098,370 Basic Earnings per Share: Continuing operations $ 0.15 $ 0.09 $ 0.17 $ 0.26 Discontinued operations — (0.08 ) — (0.06 ) Total $ 0.15 $ 0.01 $ 0.17 $ 0.20 Diluted Earnings per Share: Net income from continuing operations attributable to Xerox $ 155 $ 107 $ 189 $ 298 Accrued dividends on preferred stock (6 ) (6 ) (12 ) (12 ) Net Income From Continuing Operations Available to Common Shareholders $ 149 $ 101 $ 177 $ 286 Net loss from discontinued operations attributable to Xerox — (95 ) — (61 ) Net Income Available to Common Shareholders $ 149 $ 6 $ 177 $ 225 Weighted average common shares outstanding - Basic 1,013,284 1,087,720 1,013,164 1,098,370 Common shares issuable with respect to: Stock options 822 1,409 837 1,615 Restricted stock and performance shares 7,915 16,140 7,156 15,300 Convertible preferred stock — — — — Weighted Average Common Shares Outstanding - Diluted 1,022,021 1,105,269 1,021,157 1,115,285 Diluted Earnings per Share: Continuing operations $ 0.15 $ 0.09 $ 0.17 $ 0.26 Discontinued operations — (0.08 ) — (0.06 ) Total $ 0.15 $ 0.01 $ 0.17 $ 0.20 The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive: Stock options 1,944 2,590 1,930 2,384 Restricted stock and performance shares 15,909 13,981 16,669 14,820 Convertible preferred stock 26,966 26,966 26,966 26,966 Total Anti-Dilutive Securities 44,819 43,537 45,565 44,170 Dividends per Common Share $ 0.0775 $ 0.0700 $ 0.1550 $ 0.1400 |
Basis of Presentation - Planned
Basis of Presentation - Planned Company Separation (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Publicly Traded Companies - post separation | 2 |
Three-year strategic cost transformation program | 3 years |
Total Company Incremental Savings from three-year cost transformation program | $ 600 |
Strategic transformation program, three-year cumulative cost reduction | $ 2,400 |
Recent Accounting Pronounceme38
Recent Accounting Pronouncements (Details) - Adjustments for New Accounting Principle, Early Adoption [Member] $ in Millions | Dec. 31, 2015USD ($) |
Long-term Debt [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Finance Costs, Net | $ 28 |
Other Noncurrent Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Finance Costs, Net | 32 |
Line of Credit [Member] | Other Noncurrent Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Finance Costs, Net | $ 4 |
Segment Reporting - Segment Rev
Segment Reporting - Segment Revenue and Segment Profit (Loss) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)service_offeringprimaryreportablesegment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Primary Reportable Segments, Number | primaryreportablesegment | 2 | |||
Segment Revenue | $ 4,385 | $ 4,590 | $ 8,666 | $ 9,059 |
Segment Profit (Loss) | 377 | 354 | 668 | 726 |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Revenue | 2,470 | 2,526 | 4,952 | 4,993 |
Segment Profit (Loss) | 236 | 181 | 426 | 368 |
Document Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Revenue | 1,752 | 1,880 | 3,391 | 3,710 |
Segment Profit (Loss) | 221 | 235 | 388 | 467 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Revenue | 163 | 184 | 323 | 356 |
Segment Profit (Loss) | $ (80) | $ (62) | $ (146) | $ (109) |
Outsourcing Offerings [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Outsourcing Service Offerings, Number | service_offering | 2 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation Of Operating Profit Loss (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | ||
Segment Reporting [Abstract] | |||||
Number of Publicly Traded Companies - post separation | 2 | 2 | |||
Segment Profit | $ 377 | $ 354 | $ 668 | $ 726 | |
Reconciling items: | |||||
Restructuring and related costs | (71) | (157) | (197) | (171) | |
Restructuring charges of Fuji Xerox | (1) | (1) | (1) | (2) | |
Business transformation costs | [1] | 0 | (3) | (1) | (7) |
Amortization of intangible assets | (78) | (79) | (167) | (156) | |
Non-service retirement-related costs | [2] | (32) | (10) | (78) | (52) |
Equity in net income of unconsolidated affiliates | (22) | (29) | (59) | (63) | |
Separation costs | [3] | (28) | 0 | (36) | 0 |
Other | 0 | (1) | 0 | 0 | |
Income before Income Taxes and Equity Income | $ 145 | $ 74 | $ 129 | $ 275 | |
[1] | 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. | ||||
[2] | Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 13 - Employee Benefit Plans for details regarding these elements. | ||||
[3] | Separation costs are expenses incurred in connection with Xerox's planned separation into two independent, publicly-traded companies. These costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services. Refer to Note 1 - Basis of Presentation for additional information regarding Xerox's planned separation. |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Revenues | $ 308 | $ 619 | ||||||
Income from operations (1) | [1] | 43 | 104 | |||||
Loss on disposal | (68) | (72) | ||||||
Net (loss) income before income taxes | (25) | 32 | ||||||
Income tax expense | (70) | (93) | ||||||
Loss from discontinued operations, net of tax | $ 0 | (95) | $ 0 | (61) | ||||
ITO [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Additional pre-tax loss on disposal | $ 24 | |||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ (14) | |||||||
Payment for adjustment to sales price | $ 52 | |||||||
Payment/adjustment to sales price | $ 28 | |||||||
Payment due from closing | $ 24 | |||||||
Revenues | 308 | 619 | ||||||
Income from operations (1) | [1] | 43 | 104 | |||||
Loss on disposal | (68) | (72) | ||||||
Net (loss) income before income taxes | (25) | 32 | ||||||
Income tax expense | (70) | (93) | ||||||
Loss from discontinued operations, net of tax | (95) | (61) | ||||||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 41 | 80 | ||||||
Disposal Group, Including Discontinued Operations, Amortization | 7 | 14 | ||||||
All Other Discontinued Operations [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Revenues | 0 | 0 | ||||||
Income from operations (1) | 0 | 0 | ||||||
Loss on disposal | 0 | 0 | ||||||
Net (loss) income before income taxes | 0 | 0 | ||||||
Income tax expense | 0 | 0 | ||||||
Loss from discontinued operations, net of tax | $ 0 | $ 0 | ||||||
[1] | ) ITO Income from operations excludes depreciation and amortization expenses of approximately $41 and $80 (including $7 and $14 of intangible amortization) for the three and six months ended June 30, 2015, respectively, since the business was held for sale. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Receivables [Abstract] | ||||||
Amounts billed or billable | $ 2,209 | $ 2,209 | $ 2,110 | |||
Unbilled amounts | 345 | 345 | 289 | |||
Allowance for doubtful accounts | (77) | (77) | (80) | |||
Accounts Receivable, Net | 2,477 | 2,477 | 2,319 | |||
Billable contracts receivable to be invoiced in the subsequent month | 826 | 826 | 849 | |||
Accounts Receivable Sales Arrangements [Abstract] | ||||||
Remaining account receivable sold and derecognized | 603 | 603 | 660 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Estimated decrease to operating cash flows | (43) | $ (74) | (92) | $ (161) | ||
Accounts Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable sales | 648 | 586 | 1,328 | 1,188 | ||
Deferred proceeds | 59 | 57 | 130 | 119 | ||
Loss on sales of accounts receivable | 4 | 3 | 8 | 6 | ||
Estimated decrease to operating cash flows | [1] | (34) | $ (27) | (57) | $ (10) | |
Other Current Assets [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Deferred proceeds receivables from sales of accounts receivables | $ 59 | $ 59 | $ 61 | |||
[1] | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and, (iii) currency. |
Finance Receivables, Net - Sale
Finance Receivables, Net - Sale of Finance Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net carrying value (NCV) sold | $ 676 | $ 682 | ||||||
Allowance included in NCV | 17 | 18 | ||||||
Cash proceeds received | 635 | 630 | ||||||
Beneficial interests received | $ 86 | $ 101 | ||||||
Finance receivables sold and derecognized principal value | $ 163 | $ 163 | $ 238 | |||||
Finance receivables sold and derecognized sales value | 154 | $ 154 | 256 | |||||
Finance Receivable Beneficial Interest Weighted Average Life | 2 years | |||||||
Impact from prior sales of finance receivables | [1] | (51) | $ (89) | $ (110) | $ (194) | |||
Collections on beneficial interest | 7 | 12 | 15 | 27 | ||||
Estimated decrease to operating cash flows | (43) | (74) | (92) | (161) | ||||
Financing Receivable [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Collections on beneficial interest | 8 | $ 15 | 18 | $ 33 | ||||
Other Current Assets [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Beneficial Interest, Interest in Other Current Assets | 26 | 26 | 38 | |||||
Other Noncurrent Assets [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Beneficial interest from sale of finance receivables | $ 17 | $ 17 | $ 30 | |||||
[1] | Represents cash that would have been collected had we not sold finance receivables. |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | $ 126 | $ 118 | [1] | $ 131 | $ 131 | [1] | ||
Provision | 8 | 10 | 10 | 11 | ||||
Charge-offs | (8) | (6) | (10) | (5) | ||||
Recoveries and other | [2] | (1) | 4 | 3 | (6) | |||
Ending Balance | 125 | 126 | 134 | 131 | ||||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 4,026 | 4,156 | [1] | ||||
Allowance for credit losses not included in the impairment evaluation | 125 | 134 | ||||||
United States | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 57 | 54 | [1] | 55 | 51 | [1] | ||
Provision | 0 | 4 | 3 | 4 | ||||
Charge-offs | (3) | (2) | (3) | 0 | ||||
Recoveries and other | [2] | 0 | 1 | (1) | 0 | |||
Ending Balance | 54 | 57 | 54 | 55 | ||||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 2,149 | 2,074 | [1] | ||||
Canada | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 18 | 17 | [1] | 18 | 20 | [1] | ||
Provision | 1 | 1 | 1 | 1 | ||||
Charge-offs | (2) | (2) | (2) | (3) | ||||
Recoveries and other | [2] | 1 | 2 | 1 | 0 | |||
Ending Balance | 18 | 18 | 18 | 18 | ||||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 389 | 397 | [1] | ||||
Europe | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 49 | 45 | [1] | 56 | 58 | [1] | ||
Provision | 7 | 5 | 6 | 5 | ||||
Charge-offs | (3) | (2) | (5) | (1) | ||||
Recoveries and other | [2] | (2) | 1 | 3 | (6) | |||
Ending Balance | 51 | 49 | 60 | 56 | ||||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 1,424 | 1,619 | [1] | ||||
Other | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | [4] | 2 | 2 | [1] | 2 | 2 | [1] | |
Provision | [4] | 0 | 0 | 1 | ||||
Charge-offs | [4] | 0 | 0 | 0 | (1) | |||
Recoveries and other | [2],[4] | 0 | 0 | 0 | 0 | |||
Ending Balance | [4] | 2 | $ 2 | 2 | $ 2 | |||
Financing Receivable, Collectively Evaluated for Impairment | [3],[4] | $ 64 | $ 66 | [1] | ||||
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been revised to conform to current year presentation. | |||||||
[2] | 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. | |||||||
[3] | Total Finance receivables exclude the allowance for credit losses of $125 and $134 at June 30, 2016 and 2015, respectively. | |||||||
[4] | Includes developing market countries and smaller units. |
Finance Receivables, Net - Cred
Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | [1] | ||
Financing Receivable, Recorded Investment [Line Items] | ||||
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% | |||
Financing Receivable, Net | $ 4,026 | $ 4,106 | ||
United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 2,149 | 2,174 | ||
United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 603 | 571 | ||
United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 614 | 630 | ||
United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 352 | 364 | ||
United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 180 | 173 | ||
United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 146 | 155 | ||
United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 254 | 281 | ||
Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 389 | 365 | ||
Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 110 | 99 | ||
Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 66 | 68 | ||
Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 105 | 101 | ||
Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 41 | 38 | ||
Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 67 | 59 | ||
Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,424 | 1,509 | ||
France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 502 | 511 | ||
U.K./Ireland | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 283 | 329 | ||
Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 395 | 417 | |
Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 187 | 191 | |
Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 57 | 61 | |
Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 64 | 58 | [5] | |
Investment Grade | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 2,069 | 2,175 | ||
Investment Grade | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,138 | 1,215 | ||
Investment Grade | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 183 | 195 | ||
Investment Grade | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 554 | 575 | ||
Investment Grade | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 137 | 145 | ||
Investment Grade | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 85 | 89 | ||
Investment Grade | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 82 | 90 | ||
Investment Grade | United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 97 | 121 | ||
Investment Grade | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 223 | 215 | ||
Investment Grade | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 60 | 55 | ||
Investment Grade | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 58 | 59 | ||
Investment Grade | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 44 | 45 | ||
Investment Grade | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 24 | 23 | ||
Investment Grade | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 37 | 33 | ||
Investment Grade | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 667 | 704 | ||
Investment Grade | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 191 | 203 | ||
Investment Grade | U.K./Ireland | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 198 | 235 | ||
Investment Grade | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 207 | 206 | |
Investment Grade | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 40 | 36 | |
Investment Grade | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 31 | 24 | |
Investment Grade | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 41 | 41 | [5] | |
Non-investment Grade | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,508 | 1,425 | ||
Non-investment Grade | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 712 | 640 | ||
Non-investment Grade | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 327 | 285 | ||
Non-investment Grade | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 54 | 48 | ||
Non-investment Grade | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 108 | 92 | ||
Non-investment Grade | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 71 | 62 | ||
Non-investment Grade | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 48 | 46 | ||
Non-investment Grade | United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 104 | 107 | ||
Non-investment Grade | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 126 | 112 | ||
Non-investment Grade | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 41 | 35 | ||
Non-investment Grade | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 7 | 7 | ||
Non-investment Grade | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 39 | 35 | ||
Non-investment Grade | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 13 | 12 | ||
Non-investment Grade | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 26 | 23 | ||
Non-investment Grade | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 650 | 657 | ||
Non-investment Grade | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 245 | 207 | ||
Non-investment Grade | U.K./Ireland | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 83 | 91 | ||
Non-investment Grade | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 165 | 186 | |
Non-investment Grade | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 133 | 138 | |
Non-investment Grade | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 24 | 35 | |
Non-investment Grade | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 20 | 16 | [5] | |
Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 449 | 506 | ||
Substandard | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 299 | 319 | ||
Substandard | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 93 | 91 | ||
Substandard | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 6 | 7 | ||
Substandard | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 107 | 127 | ||
Substandard | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 24 | 22 | ||
Substandard | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 16 | 19 | ||
Substandard | United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 53 | 53 | ||
Substandard | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 40 | 38 | ||
Substandard | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 9 | 9 | ||
Substandard | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1 | 2 | ||
Substandard | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 22 | 21 | ||
Substandard | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 4 | 3 | ||
Substandard | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 4 | 3 | ||
Substandard | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 107 | 148 | ||
Substandard | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 66 | 101 | ||
Substandard | U.K./Ireland | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 2 | 3 | ||
Substandard | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 23 | 25 | |
Substandard | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 14 | 17 | |
Substandard | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 2 | 2 | |
Substandard | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | $ 3 | $ 1 | [5] | |
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | |||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | Italy, Greece, Spain and Portugal. | |||
[4] | Sweden, Norway, Denmark and Finland. | |||
[5] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | $ 4,026 | $ 4,106 | [1] | |
Total Billed | 2,209 | 2,110 | ||
Total Finance Receivables | 4,026 | 4,106 | [1] | |
Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 104 | 102 | [1] | |
Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 3,922 | 4,004 | [1] | |
United States | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2,149 | 2,174 | [1] | |
Total Finance Receivables | 2,149 | 2,174 | [1] | |
United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 74 | 77 | [1] | |
United States | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 2,075 | 2,097 | [1] | |
United States | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 603 | 571 | [1] | |
Total Finance Receivables | 603 | 571 | [1] | |
United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 15 | 14 | [1] | |
United States | Finance and other services | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 588 | 557 | [1] | |
United States | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 614 | 630 | [1] | |
Total Finance Receivables | 614 | 630 | [1] | |
United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 21 | 17 | [1] | |
United States | Government and education | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 593 | 613 | [1] | |
United States | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 352 | 364 | [1] | |
Total Finance Receivables | 352 | 364 | [1] | |
United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 14 | 15 | [1] | |
United States | Graphic arts | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 338 | 349 | [1] | |
United States | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 180 | 173 | [1] | |
Total Finance Receivables | 180 | 173 | [1] | |
United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 6 | 7 | [1] | |
United States | Industrial | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 174 | 166 | [1] | |
United States | Healthcare | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 146 | 155 | [1] | |
Total Finance Receivables | 146 | 155 | [1] | |
United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 6 | 6 | [1] | |
United States | Healthcare | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 140 | 149 | [1] | |
United States | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 254 | 281 | [1] | |
Total Finance Receivables | 254 | 281 | [1] | |
United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 12 | 18 | [1] | |
United States | Other | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 242 | 263 | [1] | |
Canada | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 389 | 365 | [1] | |
Total Finance Receivables | 389 | 365 | [1] | |
Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 3 | 3 | [1] | |
Canada | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 386 | 362 | [1] | |
Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 110 | 99 | [1] | |
Canada | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 66 | 68 | [1] | |
Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 105 | 101 | [1] | |
Canada | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 41 | 38 | [1] | |
Canada | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 67 | 59 | [1] | |
Europe | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1,424 | 1,509 | [1] | |
Total Finance Receivables | 1,424 | 1,509 | [1] | |
Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 24 | 20 | [1] | |
Europe | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 1,400 | 1,489 | [1] | |
France | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 502 | 511 | [1] | |
Total Finance Receivables | 502 | 511 | [1] | |
France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 4 | 0 | [1] | |
France | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 498 | 511 | [1] | |
U.K./Ireland | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 283 | 329 | [1] | |
Total Finance Receivables | 283 | 329 | [1] | |
U.K./Ireland | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 3 | 1 | [1] | |
U.K./Ireland | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 280 | 328 | [1] | |
Central | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [2] | 395 | 417 | [1] |
Total Finance Receivables | [3] | 395 | 417 | [4] |
Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [3] | 5 | 5 | [4] |
Central | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [3] | 390 | 412 | [4] |
Southern | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [5] | 187 | 191 | [1] |
Total Finance Receivables | [5] | 187 | 191 | [4] |
Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [5] | 11 | 13 | [4] |
Southern | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [5] | 176 | 178 | [4] |
Nordics | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [6] | 57 | 61 | [1] |
Total Finance Receivables | [6] | 57 | 61 | [4] |
Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [6] | 1 | 1 | [4] |
Nordics | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [6] | 56 | 60 | [4] |
Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 64 | 58 | [1],[4] | |
Total Finance Receivables | 64 | 58 | [1] | |
Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 3 | 2 | [1] | |
Other | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 61 | 56 | [1] | |
Current | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 73 | 74 | [1] | |
Current | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 50 | 57 | [1] | |
Current | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 9 | 10 | [1] | |
Current | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 13 | 12 | [1] | |
Current | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 13 | 12 | [1] | |
Current | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 3 | 5 | [1] | |
Current | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 3 | 4 | [1] | |
Current | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 9 | 14 | [1] | |
Current | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 3 | 3 | [1] | |
Current | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 17 | 13 | [1] | |
Current | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 4 | 0 | [1] | |
Current | U.K./Ireland | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2 | 1 | [1] | |
Current | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [3] | 3 | 3 | [4] |
Current | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [5] | 7 | 8 | [4] |
Current | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [6] | 1 | 1 | [4] |
Current | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 3 | 1 | [1] | |
31-90 Days Past Due | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 19 | 13 | [1] | |
31-90 Days Past Due | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 15 | 9 | [1] | |
31-90 Days Past Due | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 4 | 2 | [1] | |
31-90 Days Past Due | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 4 | 1 | [1] | |
31-90 Days Past Due | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 2 | [1] | |
31-90 Days Past Due | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2 | 1 | [1] | |
31-90 Days Past Due | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2 | 1 | [1] | |
31-90 Days Past Due | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2 | 2 | [1] | |
31-90 Days Past Due | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
31-90 Days Past Due | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 4 | 3 | [1] | |
31-90 Days Past Due | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
31-90 Days Past Due | U.K./Ireland | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 0 | [1] | |
31-90 Days Past Due | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [3] | 1 | 1 | [4] |
31-90 Days Past Due | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [5] | 2 | 2 | [4] |
31-90 Days Past Due | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [6] | 0 | 0 | [4] |
31-90 Days Past Due | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 1 | [1] | |
90 Days Past Due | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 12 | 15 | [1] | |
90 Days Past Due | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 9 | 11 | [1] | |
90 Days Past Due | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 2 | 2 | [1] | |
90 Days Past Due | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 4 | 4 | [1] | |
90 Days Past Due | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 1 | [1] | |
90 Days Past Due | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 1 | [1] | |
90 Days Past Due | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 1 | [1] | |
90 Days Past Due | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 2 | [1] | |
90 Days Past Due | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
90 Days Past Due | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 3 | 4 | [1] | |
90 Days Past Due | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
90 Days Past Due | U.K./Ireland | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
90 Days Past Due | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [3] | 1 | 1 | [4] |
90 Days Past Due | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [5] | 2 | 3 | [4] |
90 Days Past Due | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [6] | 0 | 0 | [4] |
90 Days Past Due | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 0 | 0 | [1] | |
90 Days and Accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 116 | 138 | [1] | |
90 Days and Accruing | United States | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 59 | 82 | [1] | |
90 Days and Accruing | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 12 | 14 | [1] | |
90 Days and Accruing | United States | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 25 | 37 | [1] | |
90 Days and Accruing | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 6 | 8 | [1] | |
90 Days and Accruing | United States | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 5 | 7 | [1] | |
90 Days and Accruing | United States | Healthcare | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 5 | 9 | [1] | |
90 Days and Accruing | United States | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 6 | 7 | [1] | |
90 Days and Accruing | Canada | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 10 | 9 | [1] | |
90 Days and Accruing | Europe | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 47 | 47 | [1] | |
90 Days and Accruing | France | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 29 | 25 | [1] | |
90 Days and Accruing | U.K./Ireland | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | 1 | 1 | [1] | |
90 Days and Accruing | Central | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [3] | 8 | 7 | [4] |
90 Days and Accruing | Southern | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [5] | 7 | 10 | [4] |
90 Days and Accruing | Nordics | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | [6] | 2 | 4 | [4] |
90 Days and Accruing | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Finance Receivables | $ 0 | $ 0 | [1] | |
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | |||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[4] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | |||
[5] | Italy, Greece, Spain and Portugal. | |||
[6] | Sweden, Norway, Denmark and Finland. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventories, net [Abstract] | ||
Finished goods | $ 855 | $ 792 |
Work-in-process | 65 | 51 |
Raw materials | 97 | 99 |
Total Inventories | $ 1,017 | $ 942 |
Investment in Affiliates, at 48
Investment in Affiliates, at Equity (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity in Net Income of Unconsolidated Affiliates | $ 22 | $ 29 | $ 59 | $ 63 | |
Fuji Xerox | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity in Net Income of Unconsolidated Affiliates | $ 19 | 25 | $ 52 | 56 | |
Ownership percentage | 25.00% | 25.00% | |||
Summary of Operations: | |||||
Revenues | $ 2,450 | 2,389 | $ 5,128 | 5,120 | |
Costs and expenses | 2,329 | 2,211 | 4,793 | 4,731 | |
Income before income taxes | 121 | 178 | 335 | 389 | |
Income tax expense | 44 | 63 | 109 | 129 | |
Net Income | 77 | 115 | 226 | 260 | |
Less: Net income – noncontrolling interests | 1 | 2 | 3 | 4 | |
Net Income – Fuji Xerox | $ 76 | $ 113 | $ 223 | $ 256 | |
Weighted Average Exchange Rate | [1] | 107.84 | 121.39 | 111.62 | 120.27 |
Other investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity in Net Income of Unconsolidated Affiliates | $ 3 | $ 4 | $ 7 | $ 7 | |
[1] | Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring Programs (Details
Restructuring Programs (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Employees | Jun. 30, 2015USD ($) | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related costs | $ 71 | $ 157 | $ 197 | $ 171 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated (approximately) | Employees | 6,100 | |||||||
Three-Year Strategic Transformation Program - Professional Support Services | $ 11 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance at beginning of period | 24 | |||||||
Provision | 203 | |||||||
Reversals | (17) | |||||||
Net Current Period Charges | 63 | 157 | 186 | [1] | 171 | |||
Charges against reserve | (39) | (175) | (66) | (212) | ||||
Balance at end of period | 144 | 144 | ||||||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | ||||||||
Charges against reserve | (39) | (175) | (66) | (212) | ||||
Asset impairments | 2 | 146 | 2 | 146 | ||||
Effects of foreign currency and other non-cash items | 0 | (1) | (1) | 5 | ||||
Restructuring Cash Payments | (37) | (30) | (65) | (61) | ||||
Services [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Net Current Period Charges | 25 | 149 | [2] | 62 | 154 | [2] | ||
Technology Segment [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Net Current Period Charges | 42 | 8 | 128 | 17 | ||||
Other [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Net Current Period Charges | (4) | $ 0 | (4) | $ 0 | ||||
Severance and Related Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 197 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance at beginning of period | 22 | |||||||
Provision | 197 | |||||||
Reversals | (12) | |||||||
Net Current Period Charges | [1] | 185 | ||||||
Charges against reserve | (64) | |||||||
Balance at end of period | 143 | 143 | ||||||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | ||||||||
Charges against reserve | (64) | |||||||
Lease Cancellation and Other Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 4 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance at beginning of period | 2 | |||||||
Provision | 4 | |||||||
Reversals | 0 | |||||||
Net Current Period Charges | [1] | 4 | ||||||
Charges against reserve | (5) | |||||||
Balance at end of period | 1 | 1 | ||||||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | ||||||||
Charges against reserve | (5) | |||||||
Asset Impairments [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance at beginning of period | 0 | |||||||
Provision | [3] | 2 | ||||||
Reversals | [3] | (5) | ||||||
Net Current Period Charges | [1],[3] | (3) | ||||||
Charges against reserve | [3] | 3 | ||||||
Balance at end of period | $ 0 | 0 | ||||||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | ||||||||
Charges against reserve | [3] | $ 3 | ||||||
[1] | Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown for restructuring and asset impairments charges. | |||||||
[2] | (1)The three and six months ended June 30, 2015 includes $146 of software asset impairment charges. | |||||||
[3] | 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. |
Debt - Debt Issuances (Details)
Debt - Debt Issuances (Details) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2016InterestDays | Apr. 01, 2016USD ($) | Mar. 15, 2016USD ($) | Mar. 11, 2016USD ($) | Mar. 04, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Number of publicly traded companies, upon completion of Xerox's Planned Company Separation | Interest | 2 | ||||
Senior Notes due 2016 6.40% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | ||||
Notes due 2016 7.20% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | ||||
Senior Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured Debt | $ 250 | $ 750 | $ 1,000 | ||
Debt Instrument, Maturity | Days | 364 | ||||
Senior Debt Obligations [Member] | Interest rate - Libor plus 1.50% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||
Minimum [Member] | Senior Debt Obligations [Member] | Interest rate - Libor plus 1.50% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.13% | ||||
Maximum [Member] | Senior Debt Obligations [Member] | Interest rate - Libor plus 1.50% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.16% | ||||
Senior Notes due 2016 and Notes due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 950 | ||||
Senior Notes due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 700 | ||||
Notes Due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 0 |
Debt - Interest Income and Expe
Debt - Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Debt Disclosure [Abstract] | |||||
Interest expense | [1] | $ 81 | $ 88 | $ 169 | $ 177 |
Interest income | [2] | $ 84 | $ 89 | $ 169 | $ 181 |
[1] | Includes Equipment financing interest as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | ||||
[2] | Includes Finance income as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,843 | $ 3,212 |
Senior Notes Due 2021 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 300 | |
Derivative Asset, Fair Value, Gross Asset | $ 18 | |
Weighted Average Interest Rate Paid | 2.52% | |
Interest Rate Received | 4.50% |
Financial Instruments - Summary
Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | $ 158 | $ 49 |
Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 172 | 62 |
Liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | (14) | (13) |
Senior Notes Due 2021 [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 18 | |
Derivatives Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | 37 | (1) |
Derivatives Designated as Hedging Instruments [Member] | Other Assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | 55 | 6 |
Derivatives Designated as Hedging Instruments [Member] | Foreign exchange contracts - forwards [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 39 | 4 |
Derivatives Designated as Hedging Instruments [Member] | Foreign exchange contracts - forwards [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | (2) | (4) |
Derivatives Designated as Hedging Instruments [Member] | Currency options [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | 0 | (1) |
Derivatives Designated as Hedging Instruments [Member] | Interest rate swap [Member] | Other long-term assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 18 | 7 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | 103 | 43 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 115 | 51 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | $ (12) | $ (8) |
Financial Instruments - Summa54
Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||||
Net losses recorded in AOCL expected to be reclassified to net income in the future | $ 33,000,000 | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ 3,000,000 | $ 5,000,000 | (1,000,000) | $ (1,000,000) |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||||
Derivative gain (loss) recognized in OCI (effective portion) | 41,000,000 | (24,000,000) | 57,000,000 | 7,000,000 |
Interest Expense [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||||
Derivative gain (loss) recognized in interest expense | 2,000,000 | (4,000,000) | 11,000,000 | 0 |
Hedged item (loss) gain recognized in interest expense | (2,000,000) | 4,000,000 | (11,000,000) | 0 |
Cost of Sales [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||||
Derivative gain (loss) reclassified from AOCI to income - Cost of sales (effective portion) | 8,000,000 | 0 | 7,000,000 | (10,000,000) |
Derivative gain (loss) reclassified from AOCI to income - Cost of sales (effective portion) | 0 | 0 | ||
Underlying, Derivative | 0 | |||
Foreign Currency Gain (Loss) [Member] | Foreign Exchange Forward [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 78,000,000 | $ (50,000,000) | $ 149,000,000 | $ (35,000,000) |
Fair Value of Financial Asset55
Fair Value of Financial Assets and Liabilities - Recurring (Details) - Fair Value, Measurements, Recurring [Member] - Significant Other Observable Inputs (Level 2) [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Interest rate swaps | $ 18 | $ 7 |
Deferred compensation investments in cash surrender life insurance | 94 | 92 |
Deferred compensation investments in mutual funds | 35 | 33 |
Total | 301 | 187 |
Liabilities: | ||
Deferred compensation plan liabilities | 127 | 125 |
Total | 141 | 138 |
Foreign Exchange Forward [Member] | ||
Assets: | ||
Foreign exchange contracts | 154 | 55 |
Liabilities: | ||
Foreign derivative contracts | 14 | 12 |
Currency options [Member] | ||
Liabilities: | ||
Foreign derivative contracts | $ 0 | $ 1 |
Fair Value of Financial Asset56
Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 1,203 | $ 1,368 |
Accounts receivable, net | 2,477 | 2,319 |
Short-term debt | 2,029 | 985 |
Long-term debt | 5,355 | 6,354 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,203 | 1,368 |
Accounts receivable, net | 2,477 | 2,319 |
Short-term debt | 2,048 | 976 |
Long-term debt | $ 5,394 | $ 6,395 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Components of Net Periodic Benefit Costs: | ||||||||||
Recognized curtailment gain | $ (22) | |||||||||
Defined Benefit Plans | $ 33 | 32 | $ 76 | $ 73 | ||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): | ||||||||||
Net actuarial loss (gain) | (100) | 200 | (223) | 112 | ||||||
Amortization of prior service credit | [1] | (3) | (32) | (5) | (40) | |||||
Amortization of net actuarial loss | [1] | 41 | 46 | 93 | 99 | |||||
Pension Plan [Member] | ||||||||||
Contributions [Abstract] | ||||||||||
Defined Benefit Plan, Contributions by Employer | 71 | 98 | $ 309 | |||||||
U.S. Plans [Member] | ||||||||||
Components of Net Periodic Benefit Costs: | ||||||||||
Service cost | 1 | 1 | 2 | 2 | ||||||
Interest cost | 35 | 38 | 73 | 76 | ||||||
Expected return on plan assets | (36) | (38) | (76) | (76) | ||||||
Recognized net actuarial loss | 7 | 6 | 12 | 13 | ||||||
Amortization of prior service credit | (1) | 0 | (1) | (1) | ||||||
Recognized settlement loss | 17 | 18 | 46 | 45 | ||||||
Recognized curtailment gain | 0 | 0 | 0 | 0 | ||||||
Defined Benefit Plans | 23 | 25 | 56 | 59 | ||||||
Defined contribution plans | 15 | 15 | 29 | 31 | [2] | |||||
Net Periodic Benefit Cost | 38 | 40 | 85 | 90 | ||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): | ||||||||||
Net actuarial loss (gain) | 134 | [3] | (140) | [3] | 257 | (52) | ||||
Amortization of prior service credit | 1 | 0 | 1 | 1 | ||||||
Amortization of net actuarial loss | (24) | (24) | (58) | (58) | ||||||
Total Recognized in Other Comprehensive Loss (Income) | [4] | 111 | (164) | 200 | (109) | |||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) | 149 | (124) | 285 | (19) | ||||||
Contributions [Abstract] | ||||||||||
Defined Benefit Plan, Contributions by Employer | 13 | 13 | 177 | |||||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | 0 | 0 | 0 | 0 | ||||||
Non-U.S. Plans [Member] | ||||||||||
Components of Net Periodic Benefit Costs: | ||||||||||
Service cost | 10 | 9 | 16 | 17 | ||||||
Interest cost | 53 | 53 | 105 | 106 | ||||||
Expected return on plan assets | (69) | (74) | (133) | (147) | ||||||
Recognized net actuarial loss | 17 | 21 | 34 | 40 | ||||||
Amortization of prior service credit | (1) | (2) | (2) | (2) | ||||||
Recognized settlement loss | 0 | 0 | 0 | 0 | ||||||
Recognized curtailment gain | 0 | 0 | 0 | 0 | ||||||
Defined Benefit Plans | 10 | 7 | 20 | 14 | ||||||
Defined contribution plans | 10 | 11 | 20 | 20 | [2] | |||||
Net Periodic Benefit Cost | 20 | 18 | 40 | 34 | ||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): | ||||||||||
Net actuarial loss (gain) | 0 | [3] | (2) | [3] | 0 | (2) | ||||
Amortization of prior service credit | 1 | 2 | 2 | 2 | ||||||
Amortization of net actuarial loss | (17) | (21) | (34) | (40) | ||||||
Total Recognized in Other Comprehensive Loss (Income) | [4] | (16) | (21) | (32) | (40) | |||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) | 4 | (3) | 8 | (6) | ||||||
Contributions [Abstract] | ||||||||||
Defined Benefit Plan, Contributions by Employer | 58 | 85 | 132 | |||||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | 0 | 0 | 0 | 0 | ||||||
Retiree Health [Member] | ||||||||||
Components of Net Periodic Benefit Costs: | ||||||||||
Service cost | 2 | 2 | 3 | 4 | ||||||
Interest cost | 8 | 8 | 16 | 17 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Recognized net actuarial loss | 0 | 1 | 1 | 1 | ||||||
Amortization of prior service credit | (1) | (8) | (2) | (15) | ||||||
Recognized settlement loss | 0 | 0 | 0 | 0 | ||||||
Recognized curtailment gain | 0 | (22) | 0 | (22) | ||||||
Defined Benefit Plans | 9 | (19) | 18 | (15) | ||||||
Net Periodic Benefit Cost | 9 | (19) | 18 | (15) | ||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss (Income): | ||||||||||
Net actuarial loss (gain) | (34) | [3] | (58) | [3] | (34) | (58) | ||||
Amortization of prior service credit | 1 | 8 | 2 | 15 | ||||||
Amortization of net actuarial loss | 0 | (1) | (1) | (1) | ||||||
Total Recognized in Other Comprehensive Loss (Income) | [4] | (33) | (29) | (33) | (22) | |||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) | (24) | (48) | (15) | (37) | ||||||
Contributions [Abstract] | ||||||||||
Defined Benefit Plan, Contributions by Employer | 30 | 29 | $ 63 | |||||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | $ 0 | $ 22 | $ 0 | 22 | ||||||
Forerecast | Pension Plan [Member] | ||||||||||
Schedule of Defined Benefit Plans Disclosures [Line Items] | ||||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 69 | |||||||||
Contributions [Abstract] | ||||||||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | [5] | 140 | ||||||||
Forerecast | U.S. Plans [Member] | ||||||||||
Schedule of Defined Benefit Plans Disclosures [Line Items] | ||||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 12 | |||||||||
Contributions [Abstract] | ||||||||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | [5] | 25 | ||||||||
Forerecast | Non-U.S. Plans [Member] | ||||||||||
Schedule of Defined Benefit Plans Disclosures [Line Items] | ||||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 57 | |||||||||
Contributions [Abstract] | ||||||||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | [5] | 115 | ||||||||
Forerecast | Retiree Health [Member] | ||||||||||
Schedule of Defined Benefit Plans Disclosures [Line Items] | ||||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 35 | |||||||||
Contributions [Abstract] | ||||||||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | [5] | $ 65 | ||||||||
ITO [Member] | ||||||||||
Components of Net Periodic Benefit Costs: | ||||||||||
Defined contribution plans | $ 4 | |||||||||
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 13 - Employee Benefit Plans for additional information. | |||||||||
[2] | The six months ended June 30, 2015 excludes defined contribution expense of $4 related to our ITO business, which was reported as a discontinued operation up to its sale on June 30, 2015. Refer to Note 4 - Divestitures for additional information regarding this sale. | |||||||||
[3] | The net actuarial loss (gain) for U.S. Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements; and (ii) adjustments for the actuarial valuation results based on January 1st plan census data. | |||||||||
[4] | Amounts represent the pre-tax effect included within Other comprehensive loss. Refer to Note 15 - Other Comprehensive (Loss) Income for related tax effects and the after-tax amounts. | |||||||||
[5] | These full year estimates are based on current expectations that we will make additional 2016 cash contributions of $69 ($12 U.S. and $57 Non-U.S) to our defined benefit pension plans and $35 to our retiree health benefit plans. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 9,074 | $ 9,074 | ||||||
Noncontrolling Interests, Beginning Balance | 43 | 43 | ||||||
Total Equity, Beginning Balance | $ 9,117 | $ 10,097 | 9,117 | $ 10,753 | ||||
Comprehensive income (loss), net attributable to Xerox | $ 123 | $ 253 | 245 | 97 | ||||
Comprehensive income, net attributable to noncontrolling interests | 2 | 6 | 4 | 10 | ||||
Comprehensive income (loss), net including portion attributable to noncontrolling interests | 125 | 259 | 249 | 107 | ||||
Cash dividends declared - common | [1] | (159) | (155) | |||||
Cash dividends declared - preferred | [2] | (12) | (12) | |||||
Stock option and incentive plans, net | 30 | 57 | ||||||
Payments to acquire treasury stock, including fees | (611) | |||||||
Cancellation of treasury stock | 0 | |||||||
Distributions to noncontrolling interests | (9) | (42) | ||||||
Ending Balance | 9,178 | $ 9,074 | 9,178 | |||||
Noncontrolling Interests, Ending Balance | 38 | 43 | 38 | |||||
Total Equity, Ending Balance | $ 9,216 | $ 9,117 | $ 10,097 | $ 9,216 | $ 10,097 | |||
Dividends per common share (in dollars per share) | $ 0.0775 | $ 0.0775 | $ 0.07 | $ 0.1550 | $ 0.14 | |||
Dividends per preferred share (in dollars per share) | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | |||
Treasury Stock, Shares, Retired | 0 | |||||||
Xerox Shareholders’ Equity | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 9,074 | $ 10,054 | $ 9,074 | $ 10,678 | ||||
Comprehensive income (loss), net attributable to Xerox | 245 | 97 | ||||||
Cash dividends declared - common | [1] | (159) | (155) | |||||
Cash dividends declared - preferred | [2] | (12) | (12) | |||||
Stock option and incentive plans, net | 30 | 57 | ||||||
Payments to acquire treasury stock, including fees | (611) | |||||||
Cancellation of treasury stock | 0 | |||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Ending Balance | $ 9,178 | $ 9,074 | $ 10,054 | 9,178 | 10,054 | |||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 1,013 | 1,097 | 1,013 | 1,124 | ||||
Comprehensive income (loss), net attributable to Xerox | 0 | 0 | ||||||
Cash dividends declared - common | [1] | 0 | 0 | |||||
Cash dividends declared - preferred | [2] | 0 | 0 | |||||
Stock option and incentive plans, net | 0 | 3 | ||||||
Payments to acquire treasury stock, including fees | 0 | |||||||
Cancellation of treasury stock | (30) | |||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Ending Balance | 1,013 | 1,013 | 1,097 | 1,013 | 1,097 | |||
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 3,017 | 3,967 | 3,017 | 4,283 | ||||
Comprehensive income (loss), net attributable to Xerox | 0 | 0 | ||||||
Cash dividends declared - common | [1] | 0 | 0 | |||||
Cash dividends declared - preferred | [2] | 0 | 0 | |||||
Stock option and incentive plans, net | 30 | 54 | ||||||
Payments to acquire treasury stock, including fees | 0 | |||||||
Cancellation of treasury stock | (370) | |||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Ending Balance | 3,047 | 3,017 | 3,967 | 3,047 | 3,967 | |||
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | (316) | (105) | ||||||
Comprehensive income (loss), net attributable to Xerox | 0 | |||||||
Cash dividends declared - common | [1] | 0 | ||||||
Cash dividends declared - preferred | [2] | 0 | ||||||
Stock option and incentive plans, net | 0 | |||||||
Payments to acquire treasury stock, including fees | (611) | |||||||
Cancellation of treasury stock | 400 | |||||||
Distributions to noncontrolling interests | 0 | |||||||
Ending Balance | (316) | (316) | ||||||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 9,686 | 9,605 | 9,686 | 9,535 | ||||
Comprehensive income (loss), net attributable to Xerox | 189 | 237 | ||||||
Cash dividends declared - common | [1] | (159) | (155) | |||||
Cash dividends declared - preferred | [2] | (12) | (12) | |||||
Stock option and incentive plans, net | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | 0 | |||||||
Cancellation of treasury stock | 0 | |||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Ending Balance | 9,704 | 9,686 | 9,605 | 9,704 | 9,605 | |||
AOCL | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | [3] | (4,642) | (4,299) | (4,642) | (4,159) | |||
Comprehensive income (loss), net attributable to Xerox | [3] | 56 | (140) | |||||
Cash dividends declared - common | [1],[3] | 0 | 0 | |||||
Cash dividends declared - preferred | [2],[3] | 0 | 0 | |||||
Stock option and incentive plans, net | [3] | 0 | 0 | |||||
Payments to acquire treasury stock, including fees | [3] | 0 | ||||||
Cancellation of treasury stock | [3] | 0 | ||||||
Distributions to noncontrolling interests | [3] | 0 | 0 | |||||
Ending Balance | [3] | (4,586) | (4,642) | (4,299) | (4,586) | (4,299) | ||
Non-controlling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling Interests, Beginning Balance | $ 43 | $ 43 | 43 | 75 | ||||
Comprehensive income, net attributable to noncontrolling interests | 4 | 10 | ||||||
Cash dividends declared - common | [1] | 0 | 0 | |||||
Cash dividends declared - preferred | [2] | 0 | 0 | |||||
Stock option and incentive plans, net | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | 0 | |||||||
Cancellation of treasury stock | 0 | |||||||
Distributions to noncontrolling interests | (9) | (42) | ||||||
Noncontrolling Interests, Ending Balance | $ 38 | $ 43 | $ 43 | $ 38 | $ 43 | |||
[1] | Cash dividends declared on common stock of $0.0775 per share in each quarter of 2016 and $0.07 per share in each quarter of 2015. | |||||||
[2] | Cash dividends declared on preferred stock of $20.00 per share in each quarter of 2016 and 2015. | |||||||
[3] | Refer to Note 15 - Other Comprehensive (Loss) Income for components of AOCL. |
Other Comprehensive Income (L59
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Other Comprehensive Income (Loss) [Abstract] | ||||||
Translation Adjustments (Losses) Gains, pre-tax | $ (75) | $ 191 | $ 118 | $ (315) | ||
Translation Adjustments (Losses) Gains, net of Tax | [1] | (77) | 194 | 114 | (315) | |
Changes in fair value of cash flow hedges - gains (losses), pre-tax | 41 | (24) | 57 | 7 | ||
Changes in fair value of cash flow hedges - gains (losses), net of tax | 30 | (18) | 39 | 7 | ||
Changes in cash flow hedges reclassed to earnings, pre-tax | [2] | (8) | 0 | (7) | 10 | |
Changes in cash flow hedges reclassed to earnings, net of tax | [2] | (5) | (1) | (5) | 4 | |
Other (losses) gains, pre-tax | (1) | 1 | (1) | 0 | ||
Other (losses) gains, net of tax | (1) | 0 | (1) | (1) | ||
Net Unrealized Gains (Losses), pre-tax | 32 | (23) | 49 | 17 | ||
Net Unrealized Gains (Losses), net of tax | [1] | 24 | (19) | 33 | 10 | |
Net actuarial (losses) gains, pre-tax | (100) | 200 | (223) | 112 | ||
Net actuarial (losses) gains, net of tax | (62) | 123 | (138) | 69 | ||
Prior service amortization, pre-tax | [3] | (3) | (32) | (5) | (40) | |
Prior service amortization, net of tax | [3] | (2) | (19) | (3) | (24) | |
Actuarial loss amortization/settlement, pre-tax | [3] | 41 | 46 | 93 | 99 | |
Actuarial loss amortization/settlement, net of tax | [3] | 28 | 32 | 63 | 67 | |
Fuji Xerox changes in defined benefit plans, net | [4] | (25) | 8 | (100) | 27 | |
Fuji Xerox changes in defined benefit plans, net, net of tax | [4] | (25) | 8 | (100) | 27 | |
Other gains (losses), pre-tax | [5] | 81 | (76) | 86 | 27 | |
Other gains (losses), net of tax | [5] | 81 | (77) | 86 | 26 | |
Change in Defined Benefit Plans (Losses) Gains, Pre-tax | (6) | 146 | (149) | 225 | ||
Change in Defined Benefit Plans (Losses) Gains, Net of Tax | [1] | 20 | 67 | (92) | 165 | |
Other Comprehensive (Loss) Income, pre-tax | (49) | 314 | 18 | (73) | ||
Other Comprehensive (Loss) Income, net of tax | [1] | (33) | 242 | 55 | (140) | |
Other comprehensive (loss) income attributable to noncontrolling interest, pre-tax | (1) | 1 | (1) | 0 | ||
Other comprehensive (loss) income attributable to noncontrolling interest, net of tax | (1) | 1 | (1) | 0 | ||
Other Comprehensive (Loss) Income Attributable to Xerox, pre-tax | (48) | 313 | 19 | (73) | ||
Other Comprehensive (Loss) Income, Attributable to Xerox, net of tax | (32) | $ 241 | 56 | $ (140) | ||
Cumulative translation adjustments | (2,287) | (2,287) | $ (2,402) | |||
Other unrealized gains, net | 34 | 34 | 1 | |||
Benefit plans net actuarial losses and prior service credits | [6] | (2,333) | (2,333) | (2,241) | ||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ (4,586) | $ (4,586) | $ (4,642) | |||
[1] | Refer to Note 15 - 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] | Reclassified to Cost of sales - refer to Note 11 - Financial Instruments for additional information regarding our cash flow hedges. | |||||
[3] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 13 - Employee Benefit Plans for additional information. | |||||
[4] | Represents our share of Fuji Xerox's benefit plan changes. | |||||
[5] | Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL. | |||||
[6] | Includes our share of Fuji Xerox. |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic Earnings per Share: | ||||
Net income from continuing operations attributable to Xerox | $ 155 | $ 107 | $ 189 | $ 298 |
Net Income From Continuing Operations Available to Common Shareholders | 149 | 101 | 177 | 286 |
Net loss from discontinued operations attributable to Xerox | 0 | (95) | 0 | (61) |
Net Income Available to Common Shareholders | $ 149 | $ 6 | $ 177 | $ 225 |
Weighted average common shares outstanding | 1,013,284 | 1,087,720 | 1,013,164 | 1,098,370 |
Continuing operations (dollars per share) | $ 0.15 | $ 0.09 | $ 0.17 | $ 0.26 |
Discontinued operations (dollars per share) | 0 | (0.08) | 0 | (0.06) |
Total Basic Earnings per Share | $ 0.15 | $ 0.01 | $ 0.17 | $ 0.20 |
Diluted Earnings per Share: | ||||
Net income from continuing operations attributable to Xerox | $ 155 | $ 107 | $ 189 | $ 298 |
Net Income From Continuing Operations Available to Common Shareholders | 149 | 101 | 177 | 286 |
Net loss from discontinued operations attributable to Xerox | 0 | (95) | 0 | (61) |
Net Income Available to Common Shareholders | $ 149 | $ 6 | $ 177 | $ 225 |
Weighted average common shares outstanding | 1,013,284 | 1,087,720 | 1,013,164 | 1,098,370 |
Common shares issuable with respect to: | ||||
Weighted Average Common Shares Outstanding - Diluted | 1,022,021 | 1,105,269 | 1,021,157 | 1,115,285 |
Continuing operations (dollars per share) | $ 0.15 | $ 0.09 | $ 0.17 | $ 0.26 |
Discontinued operations (dollars per share) | 0 | (0.08) | 0 | (0.06) |
Total Diluted Earnings per Share | $ 0.15 | $ 0.01 | $ 0.17 | $ 0.20 |
Stock options [Member] | ||||
Common shares issuable with respect to: | ||||
Stock options and Restricted stock and performance shares (in shares) | 822 | 1,409 | 837 | 1,615 |
Restricted Stock and Performance Shares [Member] | ||||
Common shares issuable with respect to: | ||||
Stock options and Restricted stock and performance shares (in shares) | 7,915 | 16,140 | 7,156 | 15,300 |
Convertible Preferred Stock [Member] | ||||
Common shares issuable with respect to: | ||||
Convertible preferred stock | 0 | 0 | 0 | 0 |
Earnings (loss) per share, basic [Member] | ||||
Basic Earnings per Share: | ||||
Accrued dividends on preferred stock | $ (6) | $ (6) | $ (12) | $ (12) |
Earnings (loss) per share, diluted [Member] | ||||
Basic Earnings per Share: | ||||
Accrued dividends on preferred stock | $ (6) | $ (6) | $ (12) | $ (12) |
Earnings per Share - Anti Dilut
Earnings per Share - Anti Dilutive Securities (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total anti-dilutive securities (in shares) | 44,819 | 43,537 | 45,565 | 44,170 | |
Dividends per common share (in dollars per share) | $ 0.0775 | $ 0.0775 | $ 0.07 | $ 0.1550 | $ 0.14 |
Stock options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total anti-dilutive securities (in shares) | 1,944 | 2,590 | 1,930 | 2,384 | |
Restricted Stock and Performance Shares [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total anti-dilutive securities (in shares) | 15,909 | 13,981 | 16,669 | 14,820 | |
Convertible preferred stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total anti-dilutive securities (in shares) | 26,966 | 26,966 | 26,966 | 26,966 |
Contingencies and Litigation (D
Contingencies and Litigation (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Letters of Credit and Surety Bonds Outstanding, Amount | $ 88 | |
Brazil Tax And Labor Contingencies [Member] | ||
Loss Contingencies [Line Items] | ||
Unreserved tax and labor contingencies | 751 | $ 577 |
Escrow cash deposits | 87 | |
Net book value of assets with liens | 18 | |
Letters of Credit Outstanding, Amount | $ 143 |
Contingencies and Litigation -
Contingencies and Litigation - Other Contingencies (Details) loans in Millions, $ in Millions | Jun. 30, 2016USD ($)loans |
Letter of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | $ 367 |
Surety Bond [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | $ 783 |
Federal Family Education Loan Program (FFELP) Guaranteed Loans [Member] | |
Guarantor Obligations [Line Items] | |
Outstanding Student Loan Portfolio, Loans | loans | 1.7 |
Outstanding Principal Balance - Student Loan Portfolio | $ 25,500 |
Reserves for losses on defaulted loans | $ 4 |