Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
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 | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 1,016,584,429 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Sales | $ 936 | $ 1,003 |
Services, maintenance and rentals | 1,442 | 1,529 |
Financing | 76 | 83 |
Total Revenues | 2,454 | 2,615 |
Costs and Expenses | ||
Cost of sales | 567 | 614 |
Cost of services, maintenance and rentals | 900 | 950 |
Cost of financing | 33 | 33 |
Research, development and engineering expenses | 118 | 126 |
Selling, administrative and general expenses | 664 | 701 |
Restructuring and related costs | 120 | 100 |
Amortization of intangible assets | 14 | 14 |
Other expenses, net | 54 | 45 |
Total Costs and Expenses | 2,470 | 2,583 |
(Loss) Income before Income Taxes and Equity Income | (16) | 32 |
Income tax benefit | (24) | (2) |
Equity in net income of unconsolidated affiliates | 16 | 37 |
Income from Continuing Operations | 24 | 71 |
Loss from discontinued operations, net of tax | (6) | (35) |
Net Income | 18 | 36 |
Less: Net income attributable to noncontrolling interests | 2 | 2 |
Net Income Attributable to Xerox | 16 | 34 |
Net income from continuing operations | $ 22 | $ 69 |
Basic Earnings (Loss) per Share: | ||
Continuing operations (dollars per share) | $ 0.02 | $ 0.06 |
Discontinued operations (dollars per share) | (0.01) | (0.03) |
Total Basic Earnings per Share | 0.01 | 0.03 |
Diluted Earnings (Loss) per Share: | ||
Continuing operations (dollars per share) | 0.02 | 0.06 |
Discontinued operations (dollars per share) | (0.01) | (0.03) |
Total Diluted Earnings per Share | $ 0.01 | $ 0.03 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 18 | $ 36 | |
Less: Net income attributable to noncontrolling interests | 2 | 2 | |
Net Income Attributable to Xerox | 16 | 34 | |
Other Comprehensive Income (Loss), Net: | |||
Translation adjustments, net | [1] | 136 | 191 |
Unrealized gains, net | [1] | 8 | 9 |
Changes in defined benefit plans, net | [1] | 26 | (112) |
Other Comprehensive Income, Net | [1] | 170 | 88 |
Less: Other comprehensive income, net attributable to noncontrolling interests | 1 | 0 | |
Other Comprehensive Income, Net Attributable to Xerox | 169 | 88 | |
Comprehensive Income, Net | |||
Comprehensive Income, Net | 188 | 124 | |
Less: Comprehensive income, net attributable to noncontrolling interests | 3 | 2 | |
Comprehensive Income, Net Attributable to Xerox | $ 185 | $ 122 | |
[1] | Refer to Note 14 - Other Comprehensive Income for gross components of Other Comprehensive 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 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets, Current | ||
Cash and cash equivalents | $ 1,045 | $ 2,223 |
Accounts receivable, net | 985 | 961 |
Billed portion of finance receivables, net | 100 | 90 |
Finance receivables, net | 1,261 | 1,256 |
Inventories | 898 | 841 |
Assets of discontinued operations | 0 | 1,002 |
Other current assets | 426 | 619 |
Total current assets | 4,715 | 6,992 |
Finance receivables due after one year, net | 2,345 | 2,398 |
Equipment on operating leases, net | 472 | 475 |
Land, buildings and equipment, net | 641 | 660 |
Investments in affiliates, at equity | 1,477 | 1,388 |
Intangible assets, net | 280 | 290 |
Goodwill | 3,808 | 3,787 |
Deferred tax assets, long-term | 1,489 | 1,472 |
Other long-term assets | 689 | 683 |
Total Assets | 15,916 | 18,145 |
Liabilities and Equity | ||
Short-term debt and current portion of long-term debt | 13 | 1,011 |
Accounts payable | 1,148 | 1,126 |
Accrued compensation and benefits costs | 409 | 420 |
Unearned income | 176 | 187 |
Liabilities of discontinued operations | 0 | 1,002 |
Other current liabilities | 878 | 908 |
Total current liabilities | 2,624 | 4,654 |
Long-term debt | 4,988 | 5,305 |
Pension and other benefit liabilities | 2,239 | 2,240 |
Post-retirement medical benefits | 694 | 698 |
Other long-term liabilities | 191 | 193 |
Total Liabilities | 10,736 | 13,090 |
Commitments and Contingencies (See Note 16) | ||
Convertible Preferred Stock | 214 | 214 |
Common stock | 1,017 | 1,014 |
Additional paid-in capital | 3,101 | 3,098 |
Retained earnings | 4,987 | 5,039 |
Accumulated other comprehensive loss | (4,179) | (4,348) |
Xerox shareholders’ equity | 4,926 | 4,803 |
Noncontrolling interests | 40 | 38 |
Total Equity | 4,966 | 4,841 |
Total Liabilities and Equity | $ 15,916 | $ 18,145 |
Shares of common stock issued and outstanding (in shares) | 1,016,584 | 1,014,375 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 18 | $ 36 |
Loss from Discontinued Operations, net of tax | 6 | 35 |
Income from Continuing Operations | 24 | 71 |
Adjustments required to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 133 | 142 |
Provision for receivables | 13 | 13 |
Provision for inventory | 5 | 9 |
Net gain on sales of businesses and assets | 0 | (20) |
Undistributed equity in net income of unconsolidated affiliates | (16) | (37) |
Stock-based compensation | 13 | 10 |
Restructuring and asset impairment charges | 110 | 98 |
Payments for restructurings | (60) | (21) |
Defined benefit pension cost | 62 | 43 |
Contributions to defined benefit pension plans | (23) | (34) |
Increase in accounts receivable and billed portion of finance receivables | (77) | (49) |
Collections of deferred proceeds from sales of receivables | 48 | 59 |
Increase in inventories | (58) | (99) |
Increase in equipment on operating leases | (52) | (62) |
Decrease in finance receivables | 65 | 64 |
Collections on beneficial interest from sales of finance receivables | 6 | 8 |
Increase in other current and long-term assets | (57) | (37) |
Increase (decrease) in accounts payable and accrued compensation | 21 | (76) |
Increase (decrease) in other current and long-term liabilities | 3 | (64) |
Net change in income tax assets and liabilities | (41) | (32) |
Net change in derivative assets and liabilities | 55 | 17 |
Other operating, net | 16 | 84 |
Net cash provided by operating activities of continuing operations | 190 | 87 |
Net cash used in operating activities of discontinued operations | (80) | (112) |
Net cash provided by (used in) operating activities | 110 | (25) |
Cash Flows from Investing Activities: | ||
Cost of additions to land, buildings and equipment | (17) | (19) |
Proceeds from sales of land, buildings and equipment | 1 | 19 |
Cost of additions to internal use software | (9) | (13) |
Acquisitions, net of cash acquired | (11) | (18) |
Other investing, net | 1 | 1 |
Net cash used in investing activities of continuing operations | (35) | (30) |
Net cash used in investing activities of discontinued operations | 0 | (95) |
Net cash used in investing activities | (35) | (125) |
Cash Flows from Financing Activities: | ||
Net proceeds on short-term debt | 1 | 749 |
Proceeds from issuance of long-term debt | 3 | 4 |
Payments on long-term debt | (1,328) | (708) |
Common stock dividends | (81) | (71) |
Preferred stock dividends | (6) | (6) |
Proceeds from issuances of common stock | 0 | 1 |
Repurchases related to stock-based compensation | (7) | 0 |
Distributions to noncontrolling interests | (1) | (11) |
Proceeds from Conduent | 161 | 0 |
Net cash used in financing activities | (1,258) | (42) |
Effect of exchange rate changes on cash and cash equivalents | 5 | 12 |
Increase in cash of discontinued operations | 0 | (2) |
Decrease in cash and cash equivalents | (1,178) | (182) |
Cash and cash equivalents at beginning of period | 2,223 | 1,228 |
Cash and Cash Equivalents at End of Period | $ 1,045 | $ 1,046 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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 2016 Annual Report on Form 10-K (2016 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 2016 Annual Report. In our opinion, all adjustments which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. For convenience and ease of reference, we refer to the financial statement caption “(Loss) Income before Income Taxes and Equity Income” as “pre-tax (loss) income.” Overview On December 31, 2016, Xerox Corporation completed the Separation of its Business Process Outsourcing (BPO) business from its Document Technology and Document Outsourcing (DT/DO) business (the “Separation”). The Separation was accomplished through the transfer of the BPO business into a new legal entity, Conduent Incorporated (Conduent), and then distributing one hundred percent ( 100% ) of the outstanding common stock of Conduent to Xerox Corporation stockholders (the “Distribution”). The Separation and Distribution were structured to be tax-free for Xerox Corporation stockholders for federal income tax purposes. Conduent is now an independent public company trading on the New York Stock Exchange (“NYSE”) under the symbol “CNDT”. After the Separation, Xerox retained the DT/DO businesses and Xerox does not beneficially own any shares of Conduent common stock. As a result of the Separation and Distribution, the financial position and results of operations of the BPO business are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. The accompanying Notes to the Condensed Consolidated Financial Statements have all been revised to reflect the effect of the Separation and Distribution and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation and Distribution as a final adjustment to the balances at December 31, 2016. Refer to Note 3 - Divestitures for additional information regarding discontinued operations. In connection with the Separation, Xerox entered into several agreements with Conduent to (1) effect the legal and structural separation of Xerox and Conduent, (2) govern the relationship between Xerox and Conduent up to and after the completion of the Separation and (3) allocate between Xerox and Conduent various assets, liabilities and obligations, including, among other things, employee benefits and tax-related assets and liabilities. The agreements entered into included a separation and distribution agreement, a transition service agreement, a tax matters agreement, an employee matters agreement, an intellectual property agreement and a trademark license agreement. Segment Discussion Following the separation of the BPO business, we realigned our operations to better manage the business and serve our customers and the markets in which we operate. In 2017 we transitioned to a geographic focus and are primarily organized from a sales perspective on the basis of “go-to-market” sales channels. These sales channels are structured to serve a range of customers for our products and services. As a result of this transition and change in structure, we concluded that we have one operating and reportable segment - the design, development and sale of document management systems and solutions. Our chief executive officer was identified as the chief operating decision maker (“CODM”). All of the Company’s activities are interrelated, and each activity is dependent upon and supportive of the other including product development, supply chain and back-office support services. In addition, all significant operating decisions are largely based upon an analysis of Xerox at the consolidated level, including assessments related to the Company’s incentive compensation plan, as well as operating decisions at the Board level. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
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. 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 expect to use the permitted modified retrospective method. Under current revenue recognition guidance, a significant majority of our revenue is recorded when we invoice customers, as that is normally the point at which all the revenue recognition criteria are met. Under ASU 2014-09, we expect the unit of accounting, that is, the identification of performance obligations, will be consistent with current revenue guidance. Additionally, based on the nature of our contracts we expect to continue to recognize revenue upon invoicing the customer for the large majority of our revenue when we adopt ASU 2014-09. Accordingly, the adoption of this standard is not expected to have a material impact for the large majority of our revenues. Additionally, a significant portion of our equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these sales are not expected to be impacted by the adoption of ASU 2014-09. We are continuing to evaluate certain contracts, which are more complex or where revenue recognition criteria are not currently met when invoicing occurs, to determine their treatment under ASU 2014-09. Although at this time we don’t expect a material change in our revenue recognition, in 2017 we expect to continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. Additionally, we are also assessing the impacts of the disclosures and cost deferral guidance required by ASU 2014-09. ASU 2014-09 requires additional disclosures. Our deferral of costs are minimal under our current practice and therefore the new guidance is expected to require more cost deferrals upon adoption. We are currently assessing the types and amounts of costs that may be eligible for deferral under the new standard. 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. The aggregate undiscounted value of our operating lease commitments at December 31, 2016 was approximately $450 . Cash Flows In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update provides specific guidance on eight cash flow classification issues where current GAAP is either unclear or does not include specific guidance. This update is effective for our fiscal year beginning January 1, 2018. This update includes specific guidance which requires cash collected on beneficial interests received in a sale of receivables be classified as inflows from investing activities. Currently, those collections are reported in operating cash flows. We reported $270 and $305 of collections on beneficial interests as operating cash inflows on the Statement of Cash Flows for the years ended December 31, 2016 and 2015, respectively. The other seven issues noted in this update are not expected to have a material impact on our financial condition, results of operations or cash flows. Additionally, in November 2016 the FASB issued ASU 2016-18 , Statement of Cash Flows - Restricted Cash . The update requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We held $149 and $179 of restricted cash, currently reported in other current or long-term assets at March 31, 2017 and December 31, 2016, respectively. This update is effective for our fiscal year beginning January 1, 2018. We are currently evaluating the impact, if any, that the adoption of ASU 2016-18 may have on our statements of cash flows in future reporting periods. 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 includes provisions to simplify certain aspects related to the accounting for share-based awards and the related financial statement presentation. The update also requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled as compared to equity as allowed under certain conditions by current US GAAP. This change is required to be adopted prospectively in the period of adoption. In addition, the ASU modifies the classification of certain share-based payment activities within the statements of cash flows and these changes are required to be applied retrospectively to all periods presented. We adopted ASU 2016-09 effective for our fiscal year beginning January 1, 2017. The adoption of ASU No. 2016-09 is not expected to have a material impact on our financial condition, results of operations or cash flows. However, the impacts may vary and may add volatility to our income tax expense in future periods depending upon, among other things, the level of tax expense and the price of the Company's common stock at the date of vesting for share-based awards. For the three months ended March 31, 2017, we recognized $2 of additional tax expense related to the application of this update. Income Taxes In October 2016, the FASB issued ASU 2016-16 , Income Taxes - Intra-Entity Transfers of Assets Other than Inventory. This update requires recognition of the income-tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs. Under current GAAP, recognition of the income tax consequences for asset transfers other than inventory could not be recognized until the asset was sold to a third party. This update is effective for our fiscal year beginning January 1, 2018 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of the adoption of ASU 2016-16 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. Retirement Benefits In March 2017, the FASB issued ASU 2017-07 , Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This update changes how employers that sponsor defined benefit pension plans and other postretirement plans present the net periodic benefit cost in the income statement. An employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendment also allows only the service cost component to be eligible for capitalization, when applicable. This update is effective for us beginning January 1, 2018. Although early adoption is permitted, we do not expect to early adopt. The amendment will be applied retrospectively for the presentation requirements and prospectively for the capitalization of the service cost component requirements. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows. Other Updates In 2017, 2016 and 2015, the FASB also issued the following Accounting Standards Updates which did not have or are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: • Business Combinations: ASU 2017-01 , Business Combinations (Topic 805) Clarifying the Definition of a Business . This update is effective for our fiscal year beginning January 1, 2020. • Equity Method Accounting: ASU 2016-07 , Equity Method and Joint Venture Accounting (Topic 353), Simplifying the Transition to the Equity Method of Accounting . This update was effective for our fiscal year beginning January 1, 2017. • Intangibles - Goodwill and Other: ASU 2017-04 , Simplifying the Goodwill Impairment Test . This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted. • 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. • Inventory: ASU 2015-11 , Simplifying the Subsequent Measurement of Inventory, which was effective for our fiscal year beginning January 1, 2017. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Business Process Outsourcing (BPO) As previously disclosed, on December 31, 2016, Xerox completed the Separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. Separation costs were $8 for the three months ended March 31, 2017 and 2016 and are included in Loss from discontinued operations, net of tax, in the accompanying Condensed Consolidated Statements of Income. Separation costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services related to the Separation transaction as well as costs associated with the operational separation of the two companies, such as those related to human resources, brand management, real estate and information management to the extent they were not capitalized. Separation costs also include the costs associated with bonuses and restricted stock grants awarded to employees for retention through the Separation. Summarized financial information for our Discontinued Operations is as follows: Three Months Ended 2017 2016 Revenues $ — $ 1,671 Cost of services — 1,409 Other expenses (1) 8 311 Total costs and expenses 8 1,720 Net loss before income taxes (8 ) (49 ) Income tax benefit 2 14 Loss from discontinued operations, net of tax $ (6 ) $ (35 ) _____________ (1) In addition to the $8 of Separation related costs, 2016 includes $1 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation and therefore was also reported in the Loss from discontinued operations. Refer to Note 9 - Debt for additional information regarding the Separation Debt Activity. In January 2017, as provided for in the Separation Agreement, we received a distribution from Conduent of $161 representing the final adjustment required to set Conduent's cash balance at $225 as of the Separation. This amount was recorded as a receivable from Conduent included in Other Current Assets at December 31, 2016. The cash receipt was reported in Cash Flows from Financing Activities in the Condensed Consolidated Statement of Cash Flows as it represented an adjustment to our Distribution of Conduent. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net were as follows: March 31, 2017 December 31, 2016 Invoiced $ 661 $ 651 Accrued 380 374 Allowance for doubtful accounts (56 ) (64 ) Accounts Receivable, Net $ 985 $ 961 We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. Accounts Receivable Sales Arrangements Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable, without recourse, to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the 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 their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in Other current assets in the accompanying Consolidated Balance Sheets and were $53 and $48 at March 31, 2017 and December 31, 2016 , 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, $473 and $531 remained uncollected as of March 31, 2017 and December 31, 2016 , respectively. Accounts receivable sales were as follows: Three Months Ended 2017 2016 Accounts receivable sales $ 511 $ 592 Deferred proceeds 52 71 Loss on sales of accounts receivable 3 4 Estimated (decrease) increase to operating cash flows (1) (65 ) 26 __________________________ (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 Finance Receivables – Allowance for Credit Losses and Credit Quality Finance receivables include sales-type leases, direct financing leases and installment loans arising from the marketing of our equipment. 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, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Provision 4 — 5 — 9 Charge-offs (6 ) (2 ) (2 ) — (10 ) Recoveries and other (3) — 2 — — 2 Balance at March 31, 2017 $ 53 $ 16 $ 40 $ 2 $ 111 Finance receivables as of March 31, 2017 collectively evaluated for impairment (4) $ 2,108 $ 382 $ 1,276 $ 51 $ 3,817 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 Finance receivables as of March 31, 2016 collectively evaluated for impairment (4) $ 2,157 $ 387 $ 1,491 $ 63 $ 4,098 __________________ (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 $111 and $126 at March 31, 2017 and 2016 , 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 capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poor's (S&P) rating of BBB- or better. Loss rates in this category are normally less than 1% . • Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category are generally in the range of 2% to 4% . • Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation when the lease was originated. Accordingly there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are 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: March 31, 2017 December 31, 2016 Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 173 $ 347 $ 95 $ 615 $ 181 $ 342 $ 95 $ 618 Government and education 520 63 7 590 543 57 8 608 Graphic arts 132 118 97 347 138 102 107 347 Industrial 81 77 24 182 82 78 24 184 Healthcare 81 49 17 147 79 47 17 143 Other 73 101 53 227 82 103 53 238 Total United States 1,060 755 293 2,108 1,105 729 304 2,138 Finance and other services 54 45 18 117 54 43 15 112 Government and education 50 5 3 58 52 6 2 60 Graphic arts 37 35 25 97 39 37 24 100 Industrial 21 13 8 42 21 13 6 40 Other 33 26 9 68 33 25 8 66 Total Canada 195 124 63 382 199 124 55 378 France 180 221 49 450 181 222 51 454 U.K./Ireland (4) 92 149 11 252 95 148 10 253 Central (1) 179 142 18 339 182 148 19 349 Southern (2) 35 138 13 186 36 131 14 181 Nordics (3) 26 22 1 49 26 22 1 49 Total Europe 512 672 92 1,276 520 671 95 1,286 Other 34 15 2 51 35 15 2 52 Total $ 1,801 $ 1,566 $ 450 $ 3,817 $ 1,859 $ 1,539 $ 456 $ 3,854 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) The December 31, 2016 amounts have been revised to conform to 2017 presentation. The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: March 31, 2017 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 15 $ 2 $ 2 $ 19 $ 596 $ 615 $ 12 Government and education 16 1 3 20 570 590 25 Graphic arts 13 1 — 14 333 347 4 Industrial 5 1 1 7 175 182 6 Healthcare 4 1 1 6 141 147 6 Other 11 2 2 15 212 227 4 Total United States 64 8 9 81 2,027 2,108 57 Canada 3 — — 3 379 382 10 France 3 — — 3 447 450 21 U.K./Ireland 2 — — 2 250 252 — Central (1) 3 1 — 4 335 339 6 Southern (2) 4 1 2 7 179 186 6 Nordics (3) 1 — — 1 48 49 — Total Europe 13 2 2 17 1,259 1,276 33 Other 2 — — 2 49 51 — Total $ 82 $ 10 $ 11 $ 103 $ 3,714 $ 3,817 $ 100 December 31, 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 $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordics (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. |
Finance Receivables, Net
Finance Receivables, Net | 3 Months Ended |
Mar. 31, 2017 | |
Financing Receivable, Net [Abstract] | |
Finance Receivables, Net | Accounts Receivable, Net Accounts receivable, net were as follows: March 31, 2017 December 31, 2016 Invoiced $ 661 $ 651 Accrued 380 374 Allowance for doubtful accounts (56 ) (64 ) Accounts Receivable, Net $ 985 $ 961 We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. Accounts Receivable Sales Arrangements Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable, without recourse, to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the 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 their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in Other current assets in the accompanying Consolidated Balance Sheets and were $53 and $48 at March 31, 2017 and December 31, 2016 , 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, $473 and $531 remained uncollected as of March 31, 2017 and December 31, 2016 , respectively. Accounts receivable sales were as follows: Three Months Ended 2017 2016 Accounts receivable sales $ 511 $ 592 Deferred proceeds 52 71 Loss on sales of accounts receivable 3 4 Estimated (decrease) increase to operating cash flows (1) (65 ) 26 __________________________ (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 Finance Receivables – Allowance for Credit Losses and Credit Quality Finance receivables include sales-type leases, direct financing leases and installment loans arising from the marketing of our equipment. 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, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Provision 4 — 5 — 9 Charge-offs (6 ) (2 ) (2 ) — (10 ) Recoveries and other (3) — 2 — — 2 Balance at March 31, 2017 $ 53 $ 16 $ 40 $ 2 $ 111 Finance receivables as of March 31, 2017 collectively evaluated for impairment (4) $ 2,108 $ 382 $ 1,276 $ 51 $ 3,817 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 Finance receivables as of March 31, 2016 collectively evaluated for impairment (4) $ 2,157 $ 387 $ 1,491 $ 63 $ 4,098 __________________ (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 $111 and $126 at March 31, 2017 and 2016 , 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 capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poor's (S&P) rating of BBB- or better. Loss rates in this category are normally less than 1% . • Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category are generally in the range of 2% to 4% . • Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation when the lease was originated. Accordingly there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are 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: March 31, 2017 December 31, 2016 Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 173 $ 347 $ 95 $ 615 $ 181 $ 342 $ 95 $ 618 Government and education 520 63 7 590 543 57 8 608 Graphic arts 132 118 97 347 138 102 107 347 Industrial 81 77 24 182 82 78 24 184 Healthcare 81 49 17 147 79 47 17 143 Other 73 101 53 227 82 103 53 238 Total United States 1,060 755 293 2,108 1,105 729 304 2,138 Finance and other services 54 45 18 117 54 43 15 112 Government and education 50 5 3 58 52 6 2 60 Graphic arts 37 35 25 97 39 37 24 100 Industrial 21 13 8 42 21 13 6 40 Other 33 26 9 68 33 25 8 66 Total Canada 195 124 63 382 199 124 55 378 France 180 221 49 450 181 222 51 454 U.K./Ireland (4) 92 149 11 252 95 148 10 253 Central (1) 179 142 18 339 182 148 19 349 Southern (2) 35 138 13 186 36 131 14 181 Nordics (3) 26 22 1 49 26 22 1 49 Total Europe 512 672 92 1,276 520 671 95 1,286 Other 34 15 2 51 35 15 2 52 Total $ 1,801 $ 1,566 $ 450 $ 3,817 $ 1,859 $ 1,539 $ 456 $ 3,854 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) The December 31, 2016 amounts have been revised to conform to 2017 presentation. The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: March 31, 2017 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 15 $ 2 $ 2 $ 19 $ 596 $ 615 $ 12 Government and education 16 1 3 20 570 590 25 Graphic arts 13 1 — 14 333 347 4 Industrial 5 1 1 7 175 182 6 Healthcare 4 1 1 6 141 147 6 Other 11 2 2 15 212 227 4 Total United States 64 8 9 81 2,027 2,108 57 Canada 3 — — 3 379 382 10 France 3 — — 3 447 450 21 U.K./Ireland 2 — — 2 250 252 — Central (1) 3 1 — 4 335 339 6 Southern (2) 4 1 2 7 179 186 6 Nordics (3) 1 — — 1 48 49 — Total Europe 13 2 2 17 1,259 1,276 33 Other 2 — — 2 49 51 — Total $ 82 $ 10 $ 11 $ 103 $ 3,714 $ 3,817 $ 100 December 31, 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 $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordics (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following is a summary of Inventories by major category: March 31, 2017 December 31, 2016 Finished goods $ 740 $ 713 Work-in-process 61 47 Raw materials 97 81 Total Inventories $ 898 $ 841 |
Investment in Affiliates, at Eq
Investment in Affiliates, at Equity | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Fuji Xerox $ 13 $ 33 Other investments 3 4 Total Equity in Net Income of Unconsolidated Affiliates $ 16 $ 37 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. In the first quarter 2017, our Fuji Xerox equity earnings included an out-of-period adjustment of receivables. The receivables adjustment was the result of a review of accounting practices at Fuji Xerox’s New Zealand subsidiary (FXNZ) related to the recovery of receivables associated with certain bundled leasing transactions that occurred in, or prior to, Fuji Xerox’s fiscal year ending March 31, 2016. Fuji Xerox’s parent, Fujifilm Holdings Corporation, is in the process of completing its investigation. Our equity earnings in the first quarter include a charge of approximately $30 , which represents our share of the current Fujifilm adjustments from this review. The impact of this adjustment was not considered to be material to any of our individual prior quarters or years and is not considered to be material to Xerox's anticipated full year 2017 results. While the investigation is ongoing, we are not currently aware of any additional adjustments related to this matter that would have a material effect on our financial statements. Summarized financial data of Fuji Xerox, which includes a portion of the current Fujifilm receivables adjustment, was as follows: Three Months Ended (2) , 2017 2016 Summary of Operations: Revenues $ 2,533 $ 2,678 Costs and expenses 2,316 2,464 Income before income taxes 217 214 Income tax expense 65 65 Net Income 152 149 Less: Net income – noncontrolling interests 2 2 Net Income – Fuji Xerox $ 150 $ 147 Weighted Average Exchange Rate (1) 113.56 115.08 _____________________________ (1) Represents Yen/U.S. Dollar exchange rate used to translate. (2) Until the investigation by Fujifilm is completed, the periods in which the current receivables adjustment may be recorded by FXNZ are subject to change, including the final amount of any adjustments for each of the three months ended March 31 in this table. In the first quarter 2017, one of the primary differences between the equity income we recorded for Fuji Xerox and our implied 25% share of Fuji Xerox’s first quarter 2017 net income in the summarized financial data is an additional amount recorded for the FXNZ adjustment. |
Restructuring Programs
Restructuring Programs | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | Restructuring Programs During the three months ended March 31, 2017 , we recorded net restructuring and asset impairment charges of $110 , which included approximately $110 of severance costs related to headcount reductions of approximately 1,000 employees worldwide and $2 of lease cancellation costs. These costs were offset by $2 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives. We also recorded $10 of costs during the three months ended March 31, 2017 , primarily related to professional support services associated with the implementation of the Strategic Transformation program. Information related to restructuring program activity during the three months ended March 31, 2017 is outlined below: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2016 $ 104 $ 23 $ — $ 127 Provision 110 2 — 112 Reversals (2 ) — — (2 ) Net Current Period Charges (1) 108 2 — 110 Charges against reserve and currency (58 ) (1 ) — (59 ) Balance at March 31, 2017 $ 154 $ 24 $ — $ 178 _____________________________ (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. The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows: Three Months Ended 2017 2016 Charges against reserve and currency $ (59 ) $ (19 ) Asset impairments — — Effects of foreign currency and other non-cash items (1 ) (2 ) Restructuring Cash Payments $ (60 ) $ (21 ) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Exchange In March 2017 , we completed a private offering to exchange portions of certain outstanding Senior Notes due 2018 through 2020 (collectively, the old notes), listed below, for $300 of new Senior Notes due 2022 and $322 in cash consideration, which includes a $22 exchange premium. The following principal amounts of each series of old notes were validly tendered and subsequently cancelled: Maturity Date Coupon Principal Amount Exchanged 4.07% Senior Notes Due March 2022 Cash Consideration Senior Notes due May 15, 2018 6.350 % $ 260 130 143 Senior Notes due March 15, 2019 2.750 % 94 47 48 Senior Notes due December 15, 2019 5.625 % 96 48 56 Senior Notes due May 15, 2020 2.800 % 87 44 43 Senior Notes due August 20, 2020 3.500 % 38 19 20 Senior Notes due September 1, 2020 2.750 % 25 12 12 Total $ 600 $ 300 $ 322 The new Senior Notes bear a fixed coupon rate of 4.07% and are due in March 2022 . There were no other significant changes to the terms between the old and new Senior Notes. We recorded a loss of approximately $9 for the exchange premium and other carrying value adjustments related to the portion of the old notes exchanged for cash. However, the old notes exchanged for the new Senior Notes were accounted for as a debt modification and therefore approximately $9 related to the exchange premium and other carrying value adjustments for that portion was carried over as an adjustment to the carrying value of new Senior Notes and is expected to be accreted over the term of the new Senior Notes. Transaction costs incurred on the exchange and paid to third parties of $4 were expensed as part of the loss. Separation Debt Activity In connection with the Separation, Conduent made a cash distribution of approximately $1.8 billion to Xerox in the fourth quarter 2016. Xerox used a portion of the cash distribution proceeds to repay its $1.0 billion Senior Unsecured Term Facility in January 2017, which was required to be repaid upon completion of the Separation. This $1.0 billion of cash and debt was excluded from the Cash and cash equivalents and Total Debt at December 31, 2016, respectively, and was reported in Current Assets and Current Liabilities of discontinued operations at December 31, 2016, respectively. In addition, due to the segregation of this cash at year-end, the payment was treated as a non-cash activity for the quarter ended March 31, 2017. Interest expense associated with this borrowing incurred during 2016 was included in Loss from discontinued operations, net of tax. Xerox used the balance of the proceeds received as well as cash on hand to repay its $500 6.75% Senior Notes and $500 2.95% Senior Notes that came due in first quarter 2017. Interest Expense and Income Interest expense and interest income were as follows: Three Months Ended 2017 2016 Interest expense (1) $ 69 $ 87 Interest income (2) 78 84 ____________ (1) Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , pay variable/receive fixed interest rate swaps with notional amounts of $300 and net asset fair value of $3 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 March 31, 2017 : 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 $ 3 2.65 % 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 March 31, 2017 and December 31, 2016 , we had outstanding forward exchange and purchased option contracts with gross notional values of $3,125 and $3,149 respectively, with terms of less than 12 months. The associated currency exposures being hedged at March 31, 2017 were materially consistent with our year-end currency exposures, with the exception of our Euro/U.K. Pound Sterling exposure, which decreased by approximately $340 , and our U.K. Pound Sterling/Euro exposure, which increased by approximately $290 (currencies hedged - buy/sell). 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 liability fair value of these contracts were $8 and $20 as of March 31, 2017 and December 31, 2016 , respectively. Summary of Derivative Instruments Fair Value The following table provides a summary of the fair value amounts of our derivative instruments: Designation of Derivatives Balance Sheet Location March 31, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments Foreign exchange contracts - forwards Other current assets $ 5 $ 6 Other current liabilities (13 ) (26 ) Foreign currency options Other current assets — — Other current liabilities — — Interest rate swaps Other long-term assets 3 4 Other long-term liabilities — — Net Designated Derivative Liability $ (5 ) $ (16 ) Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 27 $ 82 Other current liabilities (11 ) (13 ) Net Undesignated Derivative Asset $ 16 $ 69 Summary of Derivatives Total Derivative Assets $ 35 $ 92 Total Derivative Liabilities (24 ) (39 ) Net Derivative Asset $ 11 $ 53 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 Gain (Loss) on Derivative Instruments 2017 2016 Fair Value Hedges - Interest rate contracts Derivative (loss) gain recognized in interest expense $ (1 ) $ 8 Hedged item gain (loss) recognized in interest expense 1 (8 ) Cash Flow Hedges - Foreign exchange forward contracts and options Derivative gain recognized in OCI (effective portion) $ 9 $ 16 Derivative loss reclassified from AOCL to income - Cost of sales (effective portion) (4 ) (1 ) During the three months ended March 31, 2017 and 2016 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 March 31, 2017 , a net after-tax loss of $5 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 Location of Derivative Gain 2017 2016 Foreign exchange contracts – forwards Other expense – Currency gains, net $ 4 $ 71 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 months ended March 31, 2017 and 2016 , currency losses, net were $3 and $4 , respectively. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 December 31, 2016 Assets: Foreign exchange contracts - forwards $ 32 $ 88 Interest rate swaps 3 4 Deferred compensation investments in mutual funds 16 15 Total $ 51 $ 107 Liabilities: Foreign exchange contracts - forwards $ 24 $ 39 Deferred compensation plan liabilities 18 17 Total $ 42 $ 56 We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2. Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections. Summary of Other Financial Assets and Liabilities The estimated fair values of our other financial assets and liabilities were as follows: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,045 $ 1,045 $ 2,223 $ 2,223 Accounts receivable, net 985 985 961 961 Short-term debt 13 13 1,011 1,015 Long-term debt 4,988 5,151 5,305 5,438 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2017 2016 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 7 $ 6 $ 1 $ 1 Interest cost 34 37 39 50 7 8 Expected return on plan assets (31 ) (39 ) (53 ) (62 ) — — Recognized net actuarial loss 5 5 19 17 — 1 Amortization of prior service credit — — (1 ) (1 ) (1 ) (1 ) Recognized settlement loss 42 29 — — — — Defined Benefit Plans 51 33 11 10 7 9 Defined contribution plans 6 7 7 9 n/a n/a Net Periodic Benefit Cost 57 40 18 19 7 9 Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: Net actuarial loss (1) 8 123 — — — — Amortization of prior service credit — — 1 1 1 1 Amortization of net actuarial loss (47 ) (34 ) (19 ) (17 ) — (1 ) Total Recognized in Other Comprehensive Income (2) (39 ) 89 (18 ) (16 ) 1 — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 18 $ 129 $ — $ 3 $ 8 $ 9 ___________ (1) The net actuarial loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements. (2) Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 14 - Other Comprehensive Income for related tax effects and the after-tax amounts. Contributions The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Three Months Ended Year Ended December 31, 2017 2016 Estimated 2017 2016 U.S. Plans $ 6 $ 6 $ 174 $ 24 Non-U.S. Plans 17 28 176 154 Total $ 23 $ 34 $ 350 $ 178 Retiree Health $ 14 $ 14 $ 63 $ 61 The 2017 expected pension plan contributions include $150 for our domestic tax-qualified defined benefit plans, comprised of $15 to meet the minimum funding requirements and $135 of additional voluntary contributions. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 $ 1,014 $ 3,098 $ 5,039 $ (4,348 ) $ 4,803 $ 38 $ 4,841 Comprehensive income, net — — 16 169 185 3 188 Cash dividends declared - common (1) — — (64 ) — (64 ) — (64 ) Cash dividends declared - preferred (2) — — (4 ) — (4 ) — (4 ) Stock option and incentive plans, net 3 3 — — 6 — 6 Distributions to noncontrolling interests — — — — — (1 ) (1 ) Balance at March 31, 2017 $ 1,017 $ 3,101 $ 4,987 $ (4,179 ) $ 4,926 $ 40 $ 4,966 As previously disclosed in Note 1 - Basis of Presentation, the historical statements of Shareholders' Equity were not revised to reflect the effect of the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016. Refer to Note 3 - Divestitures for additional information regarding the Separation. 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 — — 34 88 122 2 124 Cash dividends declared - common (1) — — (79 ) — (79 ) — (79 ) Cash dividends declared - preferred (2) — — (6 ) — (6 ) — (6 ) Stock option and incentive plans, net — 15 — — 15 — 15 Distributions to noncontrolling interests — — — — — (8 ) (8 ) Balance at March 31, 2016 $ 1,013 $ 3,032 $ 9,635 $ (4,554 ) $ 9,126 $ 37 $ 9,163 _____________________________ (1) Cash dividends declared on common stock of $0.0625 per share in 2017 and $0.0775 per share in 2016 . (2) Cash dividends declared on preferred stock of $20.00 per share in 2017 and 2016 . (3) Refer to Note 14 - Other Comprehensive Income for components of AOCL. Treasury Stock There were no repurchases of Xerox Common Stock pursuant to Board authorized share repurchase programs during the first quarter 2017. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Other Comprehensive Income (Loss) [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income As previously disclosed in Note 1 - Basis of Presentation, the historical statements of Other Comprehensive Income have not been revised to reflect the effect of the Separation. Refer to Note 3 - Divestitures for additional information regarding the Separation. Other Comprehensive Income is comprised of the following: Three Months Ended 2017 2016 Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments Gains $ 137 $ 136 $ 193 $ 191 Unrealized Gains: Changes in fair value of cash flow hedges - gains 9 6 16 9 Changes in cash flow hedges reclassed to earnings (1) 4 2 1 — Net Unrealized Gains 13 8 17 9 Defined Benefit Plans (Losses) Gains: Net actuarial losses (8 ) (5 ) (123 ) (76 ) Prior service amortization (2) (2 ) (1 ) (2 ) (1 ) Actuarial loss amortization/settlement (2) 66 44 52 35 Fuji Xerox changes in defined benefit plans, net (3) 13 13 (75 ) (75 ) Other (losses) gains (4) (25 ) (25 ) 5 5 Changes in Defined Benefit Plans Gains (Losses) 44 26 (143 ) (112 ) Other Comprehensive Income 194 170 67 88 Less: Other comprehensive income attributable to noncontrolling interests 1 1 — — Other Comprehensive Income Attributable to Xerox $ 193 $ 169 $ 67 $ 88 _____________________________ (1) Reclassified to Cost of sales - refer to Note 10 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 12 - Employee Benefit Plans for additional information. (3) Represents our share of Fuji Xerox's benefit plan changes. (4) Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL. Accumulated Other Comprehensive Loss (AOCL) AOCL is comprised of the following: March 31, 2017 December 31, 2016 Cumulative translation adjustments $ (2,139 ) $ (2,274 ) Other unrealized losses, net (5 ) (13 ) Benefit plans net actuarial losses and prior service credits (1) (2,035 ) (2,061 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,179 ) $ (4,348 ) _____________________________ (1) Includes our share of Fuji Xerox. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Basic Earnings (Loss) per Share: Net income from continuing operations attributable to Xerox $ 22 $ 69 Accrued dividends on preferred stock (4 ) (6 ) Adjusted Net income from continuing operations available to common shareholders 18 63 Net loss from discontinued operations attributable to Xerox (6 ) (35 ) Adjusted Net income available to common shareholders $ 12 $ 28 Weighted average common shares outstanding 1,016,151 1,013,033 Basic Earnings (Loss) per Share: Continuing operations $ 0.02 $ 0.06 Discontinued operations (0.01 ) (0.03 ) Basic Earnings per Share $ 0.01 $ 0.03 Diluted Earnings (Loss) per Share: Net income from continuing operations attributable to Xerox $ 22 $ 69 Accrued dividends on preferred stock (4 ) (6 ) Adjusted Net income from continuing operations available to common shareholders 18 63 Net loss from discontinued operations attributable to Xerox (6 ) (35 ) Adjusted Net income available to common shareholders $ 12 $ 28 Weighted average common shares outstanding 1,016,151 1,013,033 Common shares issuable with respect to: Stock options — 850 Restricted stock and performance shares 8,417 6,640 Convertible preferred stock — — Adjusted Weighted average common shares outstanding 1,024,568 1,020,523 Diluted Earnings (Loss) per Share: Continuing operations $ 0.02 $ 0.06 Discontinued operations (0.01 ) (0.03 ) Diluted Earnings per Share $ 0.01 $ 0.03 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 — 2,104 Restricted stock and performance shares 15,749 18,718 Convertible preferred stock 26,966 26,966 Total Anti-Dilutive Securities 42,715 47,788 Dividends per Common Share $ 0.0625 $ 0.0775 |
Contingencies and Litigation
Contingencies and Litigation | 3 Months Ended |
Mar. 31, 2017 | |
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; governmental entity contracting; servicing and procurement law; intellectual property law; environmental law; employment law; the Employee Retirement Income Security Act (ERISA); and other laws and regulations. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. Brazil Tax and Labor Contingencies Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. As of March 31, 2017 , the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of any related interest, amounted to approximately $640 , with the decrease from our December 31, 2016 balance of approximately $750 , primarily related to closed cases partially offset by currency and interest. With respect to the unreserved balance of $640 , 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 March 31, 2017 , we had $87 of escrow cash deposits for matters we are disputing and additional letters of credit and surety bonds of approximately $152 and $98 , respectively, which include associated indexation. There were no liens on any of our Brazilian assets as of March 31, 2017. 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 Defendants”) violated the Texas Medicaid Fraud Prevention Act in the administration of ACS’s contract with the Texas Department of Health and Human Services (“HHSC”). Xerox Corporation provided a guaranty of contractual performance with respect to the ACS contract. The State alleges that the 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 Defendants filed their Answer in June, 2014 denying all allegations. The Defendants will continue to vigorously defend themselves in this matter. This matter is a “Conduent Liability”, as defined in the Separation and Distribution Agreement dated as of December 31, 2016 between Xerox Corporation and Conduent Incorporated, for which Conduent is required to indemnify Xerox. Conduent is entitled to direct the defense of this matter. Oklahoma Firefighters Pension and Retirement System v. Xerox Corporation, Ursula M. Burns, Luca Maestri, Kathryn A. Mikells, Lynn R. Blodgett, Robert K. Zapfel, David H. Bywater and Mary Scanlon: On October 21, 2016, the Oklahoma Firefighters Pension and Retirement System (“plaintiff”) filed a purported securities class action complaint against Xerox Corporation, Ursula Burns, Luca Maestri, Kathryn Mikells, Lynn Blodgett and Robert Zapfel (collectively, “defendants”) in the U.S. District Court for the Southern District of New York on behalf of the plaintiff and certain purchasers or acquirers of Xerox common stock. The complaint alleged that defendants made false and misleading statements, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5, relating to the operations and prospects of Xerox’s Health Enterprise business. Plaintiff sought, among other things, unspecified monetary damages and attorneys’ fees. Other, similar lawsuits may follow. On December 28, 2016, the Court entered a stipulated order setting out a schedule for amendment of the complaint and for defendants’ response to that complaint following the Court’s appointment of lead plaintiff under the Private Securities Litigation Reform Act. On February 28, 2017, the Court issued an opinion and order appointing the Arkansas Public Employees Retirement System ("APERS") as lead plaintiff. On May 2, 2017, APERS filed an amended complaint, alleging substantially similar claims and seeking substantially similar relief, but adding David Bywater and Mary Scanlon as defendants. Xerox will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment, or settlement occurs. Other Contingencies We have issued or provided approximately $398 of guarantees as of March 31, 2017 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil tax and labor contingencies; and iii) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations. In general, we would only be liable for the amount of these guarantees in the event we defaulted in performing our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support. 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. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Financial Information - Discontinued Operations | Summarized financial information for our Discontinued Operations is as follows: Three Months Ended 2017 2016 Revenues $ — $ 1,671 Cost of services — 1,409 Other expenses (1) 8 311 Total costs and expenses 8 1,720 Net loss before income taxes (8 ) (49 ) Income tax benefit 2 14 Loss from discontinued operations, net of tax $ (6 ) $ (35 ) _____________ (1) In addition to the $8 of Separation related costs, 2016 includes $1 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation and therefore was also reported in the Loss from discontinued operations. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable, net were as follows: March 31, 2017 December 31, 2016 Invoiced $ 661 $ 651 Accrued 380 374 Allowance for doubtful accounts (56 ) (64 ) Accounts Receivable, Net $ 985 $ 961 |
Schedule of accounts receivables sales | Accounts receivable sales were as follows: Three Months Ended 2017 2016 Accounts receivable sales $ 511 $ 592 Deferred proceeds 52 71 Loss on sales of accounts receivable 3 4 Estimated (decrease) increase to operating cash flows (1) (65 ) 26 __________________________ (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) | 3 Months Ended |
Mar. 31, 2017 | |
Financing Receivable, Net [Abstract] | |
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, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Provision 4 — 5 — 9 Charge-offs (6 ) (2 ) (2 ) — (10 ) Recoveries and other (3) — 2 — — 2 Balance at March 31, 2017 $ 53 $ 16 $ 40 $ 2 $ 111 Finance receivables as of March 31, 2017 collectively evaluated for impairment (4) $ 2,108 $ 382 $ 1,276 $ 51 $ 3,817 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 Finance receivables as of March 31, 2016 collectively evaluated for impairment (4) $ 2,157 $ 387 $ 1,491 $ 63 $ 4,098 __________________ (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 $111 and $126 at March 31, 2017 and 2016 , respectively. |
Financing Receivable Credit Quality Indicators | Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: March 31, 2017 December 31, 2016 Investment Grade Non-investment Grade Substandard Total Finance Receivables Investment Grade Non-investment Grade Substandard Total Finance Receivables Finance and other services $ 173 $ 347 $ 95 $ 615 $ 181 $ 342 $ 95 $ 618 Government and education 520 63 7 590 543 57 8 608 Graphic arts 132 118 97 347 138 102 107 347 Industrial 81 77 24 182 82 78 24 184 Healthcare 81 49 17 147 79 47 17 143 Other 73 101 53 227 82 103 53 238 Total United States 1,060 755 293 2,108 1,105 729 304 2,138 Finance and other services 54 45 18 117 54 43 15 112 Government and education 50 5 3 58 52 6 2 60 Graphic arts 37 35 25 97 39 37 24 100 Industrial 21 13 8 42 21 13 6 40 Other 33 26 9 68 33 25 8 66 Total Canada 195 124 63 382 199 124 55 378 France 180 221 49 450 181 222 51 454 U.K./Ireland (4) 92 149 11 252 95 148 10 253 Central (1) 179 142 18 339 182 148 19 349 Southern (2) 35 138 13 186 36 131 14 181 Nordics (3) 26 22 1 49 26 22 1 49 Total Europe 512 672 92 1,276 520 671 95 1,286 Other 34 15 2 51 35 15 2 52 Total $ 1,801 $ 1,566 $ 450 $ 3,817 $ 1,859 $ 1,539 $ 456 $ 3,854 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) The December 31, 2016 amounts have been revised to conform to 2017 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: March 31, 2017 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 15 $ 2 $ 2 $ 19 $ 596 $ 615 $ 12 Government and education 16 1 3 20 570 590 25 Graphic arts 13 1 — 14 333 347 4 Industrial 5 1 1 7 175 182 6 Healthcare 4 1 1 6 141 147 6 Other 11 2 2 15 212 227 4 Total United States 64 8 9 81 2,027 2,108 57 Canada 3 — — 3 379 382 10 France 3 — — 3 447 450 21 U.K./Ireland 2 — — 2 250 252 — Central (1) 3 1 — 4 335 339 6 Southern (2) 4 1 2 7 179 186 6 Nordics (3) 1 — — 1 48 49 — Total Europe 13 2 2 17 1,259 1,276 33 Other 2 — — 2 49 51 — Total $ 82 $ 10 $ 11 $ 103 $ 3,714 $ 3,817 $ 100 December 31, 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 $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordics (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 _____________________________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | The following is a summary of Inventories by major category: March 31, 2017 December 31, 2016 Finished goods $ 740 $ 713 Work-in-process 61 47 Raw materials 97 81 Total Inventories $ 898 $ 841 |
Investment in Affiliates, at 26
Investment in Affiliates, at Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Fuji Xerox $ 13 $ 33 Other investments 3 4 Total Equity in Net Income of Unconsolidated Affiliates $ 16 $ 37 |
Summarized Financial Information Of Equity Investment - Fuji Xerox | Summarized financial data of Fuji Xerox, which includes a portion of the current Fujifilm receivables adjustment, was as follows: Three Months Ended (2) , 2017 2016 Summary of Operations: Revenues $ 2,533 $ 2,678 Costs and expenses 2,316 2,464 Income before income taxes 217 214 Income tax expense 65 65 Net Income 152 149 Less: Net income – noncontrolling interests 2 2 Net Income – Fuji Xerox $ 150 $ 147 Weighted Average Exchange Rate (1) 113.56 115.08 _____________________________ (1) Represents Yen/U.S. Dollar exchange rate used to translate. (2) Until the investigation by Fujifilm is completed, the periods in which the current receivables adjustment may be recorded by FXNZ are subject to change, including the final amount of any adjustments for each of the three months ended March 31 in this table. In the first quarter 2017, one of the primary differences between the equity income we recorded for Fuji Xerox and our implied 25% share of Fuji Xerox’s first quarter 2017 net income in the summarized financial data is an additional amount recorded for the FXNZ adjustment. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program Activity | Information related to restructuring program activity during the three months ended March 31, 2017 is outlined below: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2016 $ 104 $ 23 $ — $ 127 Provision 110 2 — 112 Reversals (2 ) — — (2 ) Net Current Period Charges (1) 108 2 — 110 Charges against reserve and currency (58 ) (1 ) — (59 ) Balance at March 31, 2017 $ 154 $ 24 $ — $ 178 _____________________________ (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 | The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows: Three Months Ended 2017 2016 Charges against reserve and currency $ (59 ) $ (19 ) Asset impairments — — Effects of foreign currency and other non-cash items (1 ) (2 ) Restructuring Cash Payments $ (60 ) $ (21 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Exchange | The following principal amounts of each series of old notes were validly tendered and subsequently cancelled: Maturity Date Coupon Principal Amount Exchanged 4.07% Senior Notes Due March 2022 Cash Consideration Senior Notes due May 15, 2018 6.350 % $ 260 130 143 Senior Notes due March 15, 2019 2.750 % 94 47 48 Senior Notes due December 15, 2019 5.625 % 96 48 56 Senior Notes due May 15, 2020 2.800 % 87 44 43 Senior Notes due August 20, 2020 3.500 % 38 19 20 Senior Notes due September 1, 2020 2.750 % 25 12 12 Total $ 600 $ 300 $ 322 |
Schedule Of Interest Expense And Interest Income | Interest expense and interest income were as follows: Three Months Ended 2017 2016 Interest expense (1) $ 69 $ 87 Interest income (2) 78 84 ____________ (1) Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of 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) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following is a summary of our fair value hedges at March 31, 2017 : 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 $ 3 2.65 % 4.5 % Libor 2021 |
Summary of Derivative Instruments Fair Value | The following table provides a summary of the fair value amounts of our derivative instruments: Designation of Derivatives Balance Sheet Location March 31, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments Foreign exchange contracts - forwards Other current assets $ 5 $ 6 Other current liabilities (13 ) (26 ) Foreign currency options Other current assets — — Other current liabilities — — Interest rate swaps Other long-term assets 3 4 Other long-term liabilities — — Net Designated Derivative Liability $ (5 ) $ (16 ) Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 27 $ 82 Other current liabilities (11 ) (13 ) Net Undesignated Derivative Asset $ 16 $ 69 Summary of Derivatives Total Derivative Assets $ 35 $ 92 Total Derivative Liabilities (24 ) (39 ) Net Derivative Asset $ 11 $ 53 |
Derivative Instruments, Gain (Loss) | The following table provides a summary of gains (losses) on derivative instruments: Three Months Ended Gain (Loss) on Derivative Instruments 2017 2016 Fair Value Hedges - Interest rate contracts Derivative (loss) gain recognized in interest expense $ (1 ) $ 8 Hedged item gain (loss) recognized in interest expense 1 (8 ) Cash Flow Hedges - Foreign exchange forward contracts and options Derivative gain recognized in OCI (effective portion) $ 9 $ 16 Derivative loss reclassified from AOCL to income - Cost of sales (effective portion) (4 ) (1 ) |
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 Location of Derivative Gain 2017 2016 Foreign exchange contracts – forwards Other expense – Currency gains, net $ 4 $ 71 |
Fair Value of Financial Asset30
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial assets and liabilities | The following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. March 31, 2017 December 31, 2016 Assets: Foreign exchange contracts - forwards $ 32 $ 88 Interest rate swaps 3 4 Deferred compensation investments in mutual funds 16 15 Total $ 51 $ 107 Liabilities: Foreign exchange contracts - forwards $ 24 $ 39 Deferred compensation plan liabilities 18 17 Total $ 42 $ 56 |
Estimated fair values of financial assets and liabilities not measured at fair value on a recurring basis | The estimated fair values of our other financial assets and liabilities were as follows: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,045 $ 1,045 $ 2,223 $ 2,223 Accounts receivable, net 985 985 961 961 Short-term debt 13 13 1,011 1,015 Long-term debt 4,988 5,151 5,305 5,438 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
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 March 31, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health Components of Net Periodic Benefit Costs: 2017 2016 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 7 $ 6 $ 1 $ 1 Interest cost 34 37 39 50 7 8 Expected return on plan assets (31 ) (39 ) (53 ) (62 ) — — Recognized net actuarial loss 5 5 19 17 — 1 Amortization of prior service credit — — (1 ) (1 ) (1 ) (1 ) Recognized settlement loss 42 29 — — — — Defined Benefit Plans 51 33 11 10 7 9 Defined contribution plans 6 7 7 9 n/a n/a Net Periodic Benefit Cost 57 40 18 19 7 9 Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: Net actuarial loss (1) 8 123 — — — — Amortization of prior service credit — — 1 1 1 1 Amortization of net actuarial loss (47 ) (34 ) (19 ) (17 ) — (1 ) Total Recognized in Other Comprehensive Income (2) (39 ) 89 (18 ) (16 ) 1 — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 18 $ 129 $ — $ 3 $ 8 $ 9 ___________ (1) The net actuarial loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements. (2) Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 14 - Other Comprehensive Income for related tax effects and the after-tax amounts. |
Defined Benefit and Retiree Health Pension Plans, actual and expected cash contributions | The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Three Months Ended Year Ended December 31, 2017 2016 Estimated 2017 2016 U.S. Plans $ 6 $ 6 $ 174 $ 24 Non-U.S. Plans 17 28 176 154 Total $ 23 $ 34 $ 350 $ 178 Retiree Health $ 14 $ 14 $ 63 $ 61 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 $ 1,014 $ 3,098 $ 5,039 $ (4,348 ) $ 4,803 $ 38 $ 4,841 Comprehensive income, net — — 16 169 185 3 188 Cash dividends declared - common (1) — — (64 ) — (64 ) — (64 ) Cash dividends declared - preferred (2) — — (4 ) — (4 ) — (4 ) Stock option and incentive plans, net 3 3 — — 6 — 6 Distributions to noncontrolling interests — — — — — (1 ) (1 ) Balance at March 31, 2017 $ 1,017 $ 3,101 $ 4,987 $ (4,179 ) $ 4,926 $ 40 $ 4,966 As previously disclosed in Note 1 - Basis of Presentation, the historical statements of Shareholders' Equity were not revised to reflect the effect of the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016. Refer to Note 3 - Divestitures for additional information regarding the Separation. 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 — — 34 88 122 2 124 Cash dividends declared - common (1) — — (79 ) — (79 ) — (79 ) Cash dividends declared - preferred (2) — — (6 ) — (6 ) — (6 ) Stock option and incentive plans, net — 15 — — 15 — 15 Distributions to noncontrolling interests — — — — — (8 ) (8 ) Balance at March 31, 2016 $ 1,013 $ 3,032 $ 9,635 $ (4,554 ) $ 9,126 $ 37 $ 9,163 _____________________________ (1) Cash dividends declared on common stock of $0.0625 per share in 2017 and $0.0775 per share in 2016 . (2) Cash dividends declared on preferred stock of $20.00 per share in 2017 and 2016 . (3) Refer to Note 14 - Other Comprehensive Income for components of AOCL. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Other Comprehensive Income (Loss) | Other Comprehensive Income is comprised of the following: Three Months Ended 2017 2016 Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments Gains $ 137 $ 136 $ 193 $ 191 Unrealized Gains: Changes in fair value of cash flow hedges - gains 9 6 16 9 Changes in cash flow hedges reclassed to earnings (1) 4 2 1 — Net Unrealized Gains 13 8 17 9 Defined Benefit Plans (Losses) Gains: Net actuarial losses (8 ) (5 ) (123 ) (76 ) Prior service amortization (2) (2 ) (1 ) (2 ) (1 ) Actuarial loss amortization/settlement (2) 66 44 52 35 Fuji Xerox changes in defined benefit plans, net (3) 13 13 (75 ) (75 ) Other (losses) gains (4) (25 ) (25 ) 5 5 Changes in Defined Benefit Plans Gains (Losses) 44 26 (143 ) (112 ) Other Comprehensive Income 194 170 67 88 Less: Other comprehensive income attributable to noncontrolling interests 1 1 — — Other Comprehensive Income Attributable to Xerox $ 193 $ 169 $ 67 $ 88 _____________________________ (1) Reclassified to Cost of sales - refer to Note 10 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 12 - Employee Benefit Plans for additional information. (3) Represents our share of Fuji Xerox's benefit plan changes. (4) Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL. |
Schedule of Accumulated Other Comprehensive Loss | AOCL is comprised of the following: March 31, 2017 December 31, 2016 Cumulative translation adjustments $ (2,139 ) $ (2,274 ) Other unrealized losses, net (5 ) (13 ) Benefit plans net actuarial losses and prior service credits (1) (2,035 ) (2,061 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,179 ) $ (4,348 ) _____________________________ (1) Includes our share of Fuji Xerox. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Basic Earnings (Loss) per Share: Net income from continuing operations attributable to Xerox $ 22 $ 69 Accrued dividends on preferred stock (4 ) (6 ) Adjusted Net income from continuing operations available to common shareholders 18 63 Net loss from discontinued operations attributable to Xerox (6 ) (35 ) Adjusted Net income available to common shareholders $ 12 $ 28 Weighted average common shares outstanding 1,016,151 1,013,033 Basic Earnings (Loss) per Share: Continuing operations $ 0.02 $ 0.06 Discontinued operations (0.01 ) (0.03 ) Basic Earnings per Share $ 0.01 $ 0.03 Diluted Earnings (Loss) per Share: Net income from continuing operations attributable to Xerox $ 22 $ 69 Accrued dividends on preferred stock (4 ) (6 ) Adjusted Net income from continuing operations available to common shareholders 18 63 Net loss from discontinued operations attributable to Xerox (6 ) (35 ) Adjusted Net income available to common shareholders $ 12 $ 28 Weighted average common shares outstanding 1,016,151 1,013,033 Common shares issuable with respect to: Stock options — 850 Restricted stock and performance shares 8,417 6,640 Convertible preferred stock — — Adjusted Weighted average common shares outstanding 1,024,568 1,020,523 Diluted Earnings (Loss) per Share: Continuing operations $ 0.02 $ 0.06 Discontinued operations (0.01 ) (0.03 ) Diluted Earnings per Share $ 0.01 $ 0.03 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 — 2,104 Restricted stock and performance shares 15,749 18,718 Convertible preferred stock 26,966 26,966 Total Anti-Dilutive Securities 42,715 47,788 Dividends per Common Share $ 0.0625 $ 0.0775 |
Basis of Presentation - Planned
Basis of Presentation - Planned Company Separation (Details) | Dec. 31, 2016 |
Conduent [Member] | |
Discontinued Operation, percentage of business divested | 100.00% |
Basis of Presentation - Segment
Basis of Presentation - Segment Change (Details) | 3 Months Ended |
Mar. 31, 2017service_offering | |
Segment Change [Abstract] | |
Number of Reportable Segments | 1 |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ASU 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Leases, Future Minimum Payments Due | $ 450 | ||
ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Collections on Beneficial Interests Received in sales of Accounts Receivable and Finance Receivables | 270 | $ 305 | |
ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stock Compensation Tax Expense Net Reclass from APIC to Income Taxes | $ 2 | ||
ASU 2016-18, Statement of Cash Flows [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted Cash and Cash Equivalents | $ 149 | $ 179 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Mar. 04, 2016 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Separation costs | $ 8 | $ 8 | |||
Total Costs and Expenses | 2,470 | 2,583 | |||
Loss from discontinued operations, net of tax | (6) | (35) | |||
Interest expense | [1] | 69 | 87 | ||
Proceeds from Conduent | 161 | 0 | |||
Conduent [Domain] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues | 0 | 1,671 | |||
Cost of services | 0 | 1,409 | |||
Other expenses(1) | [2] | 8 | 311 | ||
Total Costs and Expenses | 8 | 1,720 | |||
Net loss before income taxes | (8) | (49) | |||
Income tax benefit | 2 | 14 | |||
Loss from discontinued operations, net of tax | (6) | (35) | |||
Interest expense | $ 1 | ||||
Proceeds from Conduent | $ 161 | ||||
Conduent Cash Balance at Separation | $ 225 | ||||
Senior Debt Obligations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Unsecured Debt | $ 1,000 | ||||
[1] | Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | ||||
[2] | In addition to the $8 of Separation related costs, 2016 includes $1 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation and therefore was also reported in the Loss from discontinued operations. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Net | $ 985 | $ 961 | ||
Accounts Receivable Sales Arrangements [Abstract] | ||||
Remaining account receivable sold and derecognized | 473 | 531 | ||
Accounts Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Invoiced | 661 | 651 | ||
Accrued | 380 | 374 | ||
Allowance for doubtful accounts | (56) | (64) | ||
Accounts receivable sales | 511 | $ 592 | ||
Deferred proceeds | 52 | 71 | ||
Loss on sales of accounts receivable | 3 | 4 | ||
Estimated (decrease) increase to operating cash flows(1) | [1] | (65) | $ 26 | |
Other Current Assets [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Deferred proceeds | $ 53 | $ 48 | ||
[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 (Detai
Finance Receivables, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | $ 110 | $ 118 | [1] | |
Provision | 9 | 10 | ||
Charge-offs | (10) | (6) | ||
Recoveries and other | [2] | 2 | 4 | |
Ending Balance | 111 | 126 | ||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 3,817 | 4,098 | |
Allowance for credit losses not included in the impairment evaluation | 111 | 126 | ||
United States | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 55 | 54 | [1] | |
Provision | 4 | 4 | ||
Charge-offs | (6) | (2) | ||
Recoveries and other | [2] | 0 | 1 | |
Ending Balance | 53 | 57 | ||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 2,108 | 2,157 | |
Canada | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 16 | 17 | [1] | |
Provision | 0 | 1 | ||
Charge-offs | (2) | (2) | ||
Recoveries and other | [2] | 2 | 2 | |
Ending Balance | 16 | 18 | ||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 382 | 387 | |
Europe | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 37 | 45 | [1] | |
Provision | 5 | 5 | ||
Charge-offs | (2) | (2) | ||
Recoveries and other | [2] | 0 | 1 | |
Ending Balance | 40 | 49 | ||
Financing Receivable, Collectively Evaluated for Impairment | [3] | 1,276 | 1,491 | |
Other | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | [4] | 2 | 2 | [1] |
Provision | [4] | 0 | 0 | |
Charge-offs | [4] | 0 | 0 | |
Recoveries and other | [2],[4] | 0 | 0 | |
Ending Balance | [4] | 2 | 2 | |
Financing Receivable, Collectively Evaluated for Impairment | [3],[4] | $ 51 | $ 63 | |
[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 $111 and $126 at March 31, 2017 and 2016, respectively. | |||
[4] | Includes developing market countries and smaller units. |
Finance Receivables, Net - Cred
Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | |||
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 | $ 3,817 | $ 3,854 | ||
United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 2,108 | 2,138 | ||
United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 615 | 618 | ||
United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 590 | 608 | ||
United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 347 | 347 | ||
United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 182 | 184 | ||
United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 147 | 143 | ||
United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 227 | 238 | ||
Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 382 | 378 | ||
Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 117 | 112 | ||
Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 58 | 60 | ||
Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 97 | 100 | ||
Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 42 | 40 | ||
Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 68 | 66 | ||
Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,276 | 1,286 | ||
France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 450 | 454 | ||
U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 252 | 253 | [1] | |
Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 339 | 349 | |
Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 186 | 181 | |
Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 49 | 49 | |
Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 51 | 52 | ||
Investment Grade | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,801 | 1,859 | ||
Investment Grade | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,060 | 1,105 | ||
Investment Grade | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 173 | 181 | ||
Investment Grade | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 520 | 543 | ||
Investment Grade | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 132 | 138 | ||
Investment Grade | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 81 | 82 | ||
Investment Grade | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 81 | 79 | ||
Investment Grade | United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 73 | 82 | ||
Investment Grade | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 195 | 199 | ||
Investment Grade | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 54 | 54 | ||
Investment Grade | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 50 | 52 | ||
Investment Grade | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 37 | 39 | ||
Investment Grade | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 21 | 21 | ||
Investment Grade | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 33 | 33 | ||
Investment Grade | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 512 | 520 | ||
Investment Grade | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 180 | 181 | ||
Investment Grade | U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 92 | 95 | [1] | |
Investment Grade | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 179 | 182 | |
Investment Grade | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 35 | 36 | |
Investment Grade | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 26 | 26 | |
Investment Grade | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 34 | 35 | ||
Non-investment Grade | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,566 | 1,539 | ||
Non-investment Grade | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 755 | 729 | ||
Non-investment Grade | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 347 | 342 | ||
Non-investment Grade | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 63 | 57 | ||
Non-investment Grade | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 118 | 102 | ||
Non-investment Grade | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 77 | 78 | ||
Non-investment Grade | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 49 | 47 | ||
Non-investment Grade | United States | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 101 | 103 | ||
Non-investment Grade | Canada | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 124 | 124 | ||
Non-investment Grade | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 45 | 43 | ||
Non-investment Grade | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 5 | 6 | ||
Non-investment Grade | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 35 | 37 | ||
Non-investment Grade | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 13 | 13 | ||
Non-investment Grade | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 26 | 25 | ||
Non-investment Grade | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 672 | 671 | ||
Non-investment Grade | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 221 | 222 | ||
Non-investment Grade | U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 149 | 148 | [1] | |
Non-investment Grade | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 142 | 148 | |
Non-investment Grade | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 138 | 131 | |
Non-investment Grade | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 22 | 22 | |
Non-investment Grade | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 15 | 15 | ||
Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 450 | 456 | ||
Substandard | United States | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 293 | 304 | ||
Substandard | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 95 | 95 | ||
Substandard | United States | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 7 | 8 | ||
Substandard | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 97 | 107 | ||
Substandard | United States | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 24 | 24 | ||
Substandard | United States | Healthcare | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 17 | 17 | ||
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 | 63 | 55 | ||
Substandard | Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 18 | 15 | ||
Substandard | Canada | Government and education | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 3 | 2 | ||
Substandard | Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 25 | 24 | ||
Substandard | Canada | Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 8 | 6 | ||
Substandard | Canada | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 9 | 8 | ||
Substandard | Europe | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 92 | 95 | ||
Substandard | France | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 49 | 51 | ||
Substandard | U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 11 | 10 | [1] | |
Substandard | Central | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [2] | 18 | 19 | |
Substandard | Southern | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [3] | 13 | 14 | |
Substandard | Nordics | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | [4] | 1 | 1 | |
Substandard | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | $ 2 | $ 2 | ||
[1] | The December 31, 2016 amounts have been revised to conform to 2017 presentation. | |||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | Italy, Greece, Spain and Portugal. | |||
[4] | Sweden, Norway, Denmark and Finland. |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | $ 3,817 | $ 3,854 | ||
Total Finance Receivables | 3,817 | 3,854 | ||
Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 103 | 94 | ||
Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 3,714 | 3,760 | ||
United States | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2,108 | 2,138 | ||
Total Finance Receivables | 2,108 | 2,138 | ||
United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 81 | 71 | ||
United States | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 2,027 | 2,067 | ||
United States | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 615 | 618 | ||
Total Finance Receivables | 615 | 618 | ||
United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 19 | 17 | ||
United States | Finance and other services | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 596 | 601 | ||
United States | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 590 | 608 | ||
Total Finance Receivables | 590 | 608 | ||
United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 20 | 17 | ||
United States | Government and education | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 570 | 591 | ||
United States | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 347 | 347 | ||
Total Finance Receivables | 347 | 347 | ||
United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 14 | 14 | ||
United States | Graphic arts | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 333 | 333 | ||
United States | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 182 | 184 | ||
Total Finance Receivables | 182 | 184 | ||
United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 7 | 6 | ||
United States | Industrial | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 175 | 178 | ||
United States | Healthcare | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 147 | 143 | ||
Total Finance Receivables | 147 | 143 | ||
United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 6 | 5 | ||
United States | Healthcare | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 141 | 138 | ||
United States | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 227 | 238 | ||
Total Finance Receivables | 227 | 238 | ||
United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 15 | 12 | ||
United States | Other | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 212 | 226 | ||
Canada | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 382 | 378 | ||
Total Finance Receivables | 382 | 378 | ||
Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 3 | 3 | ||
Canada | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 379 | 375 | ||
Canada | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 117 | 112 | ||
Canada | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 58 | 60 | ||
Canada | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 97 | 100 | ||
Canada | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 42 | 40 | ||
Canada | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 68 | 66 | ||
Europe | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1,276 | 1,286 | ||
Total Finance Receivables | 1,276 | 1,286 | ||
Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 17 | 17 | ||
Europe | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 1,259 | 1,269 | ||
France | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 450 | 454 | ||
Total Finance Receivables | 450 | 454 | ||
France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 3 | 3 | ||
France | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 447 | 451 | ||
U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 252 | 253 | [1] | |
Total Finance Receivables | 252 | 253 | ||
U.K./Ireland(4) | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 2 | 3 | ||
U.K./Ireland(4) | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 250 | 250 | ||
Central | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [2] | 339 | 349 | |
Total Finance Receivables | [3] | 339 | 349 | |
Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [3] | 4 | 3 | |
Central | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [3] | 335 | 346 | |
Southern | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [4] | 186 | 181 | |
Total Finance Receivables | [4] | 186 | 181 | |
Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [4] | 7 | 7 | |
Southern | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [4] | 179 | 174 | |
Nordics | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [5] | 49 | 49 | |
Total Finance Receivables | [5] | 49 | 49 | |
Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | [5] | 1 | 1 | |
Nordics | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | [5] | 48 | 48 | |
Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 51 | 52 | ||
Total Finance Receivables | 51 | 52 | ||
Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Billed | 2 | 3 | ||
Other | Unbilled Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unbilled | 49 | 49 | ||
Current | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 82 | 71 | ||
Current | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 64 | 52 | ||
Current | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 15 | 13 | ||
Current | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 16 | 10 | ||
Current | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 13 | 13 | ||
Current | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 5 | 4 | ||
Current | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 4 | 3 | ||
Current | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 11 | 9 | ||
Current | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 3 | 3 | ||
Current | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 13 | 13 | ||
Current | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 3 | 3 | ||
Current | U.K./Ireland(4) | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 2 | ||
Current | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [3] | 3 | 2 | |
Current | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [4] | 4 | 5 | |
Current | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [5] | 1 | 1 | |
Current | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 3 | ||
31-90 Days Past Due | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 10 | 15 | ||
31-90 Days Past Due | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 8 | 12 | ||
31-90 Days Past Due | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 3 | ||
31-90 Days Past Due | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 4 | ||
31-90 Days Past Due | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 1 | ||
31-90 Days Past Due | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 1 | ||
31-90 Days Past Due | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 1 | ||
31-90 Days Past Due | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 2 | ||
31-90 Days Past Due | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
31-90 Days Past Due | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 3 | ||
31-90 Days Past Due | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
31-90 Days Past Due | U.K./Ireland(4) | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 1 | ||
31-90 Days Past Due | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [3] | 1 | 1 | |
31-90 Days Past Due | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [4] | 1 | 1 | |
31-90 Days Past Due | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [5] | 0 | 0 | |
31-90 Days Past Due | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days Past Due | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 11 | 8 | ||
90 Days Past Due | United States | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 9 | 7 | ||
90 Days Past Due | United States | Finance and other services | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 1 | ||
90 Days Past Due | United States | Government and education | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 3 | 3 | ||
90 Days Past Due | United States | Graphic arts | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days Past Due | United States | Industrial | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 1 | ||
90 Days Past Due | United States | Healthcare | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 1 | 1 | ||
90 Days Past Due | United States | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 1 | ||
90 Days Past Due | Canada | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days Past Due | Europe | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 2 | 1 | ||
90 Days Past Due | France | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days Past Due | U.K./Ireland(4) | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days Past Due | Central | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [3] | 0 | 0 | |
90 Days Past Due | Southern | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [4] | 2 | 1 | |
90 Days Past Due | Nordics | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [5] | 0 | 0 | |
90 Days Past Due | Other | Billed Revenues | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
90 Days and Accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 100 | 97 | ||
90 Days and Accruing | United States | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 57 | 56 | ||
90 Days and Accruing | United States | Finance and other services | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 12 | 11 | ||
90 Days and Accruing | United States | Government and education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 25 | 25 | ||
90 Days and Accruing | United States | Graphic arts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 4 | 5 | ||
90 Days and Accruing | United States | Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 6 | 5 | ||
90 Days and Accruing | United States | Healthcare | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 6 | 5 | ||
90 Days and Accruing | United States | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 4 | 5 | ||
90 Days and Accruing | Canada | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 10 | 8 | ||
90 Days and Accruing | Europe | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 33 | 33 | ||
90 Days and Accruing | France | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 21 | 20 | ||
90 Days and Accruing | U.K./Ireland(4) | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | 0 | 1 | ||
90 Days and Accruing | Central | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [3] | 6 | 5 | |
90 Days and Accruing | Southern | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [4] | 6 | 6 | |
90 Days and Accruing | Nordics | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | [5] | 0 | 1 | |
90 Days and Accruing | Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Net | $ 0 | $ 0 | ||
[1] | The December 31, 2016 amounts have been revised to conform to 2017 presentation. | |||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[3] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[4] | Italy, Greece, Spain and Portugal. | |||
[5] | Sweden, Norway, Denmark and Finland. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories, net [Abstract] | ||
Finished goods | $ 740 | $ 713 |
Work-in-process | 61 | 47 |
Raw materials | 97 | 81 |
Total Inventories | $ 898 | $ 841 |
Investment in Affiliates, at 44
Investment in Affiliates, at Equity (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||
Total Equity in Net Income of Unconsolidated Affiliates | $ 16 | $ 37 | |
Fuji Xerox | |||
Schedule of Equity Method Investments [Line Items] | |||
Total Equity in Net Income of Unconsolidated Affiliates | $ 13 | 33 | |
Ownership percentage | 25.00% | ||
Out-of-Period Adjustment - Fuji Xerox | $ 30 | ||
Summary of Operations: | |||
Revenues | [1] | 2,533 | 2,678 |
Costs and expenses | [1] | 2,316 | 2,464 |
Income before income taxes | [1] | 217 | 214 |
Income tax expense | [1] | 65 | 65 |
Net Income | [1] | 152 | 149 |
Less: Net income – noncontrolling interests | [1] | 2 | 2 |
Net Income – Fuji Xerox | [1] | $ 150 | $ 147 |
Weighted Average Exchange Rate | [1],[2] | 113.56 | 115.08 |
Other investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Total Equity in Net Income of Unconsolidated Affiliates | $ 3 | $ 4 | |
[1] | Until the investigation by Fujifilm is completed, the periods in which the current receivables adjustment may be recorded by FXNZ are subject to change, including the final amount of any adjustments for each of the three months ended March 31 in this table. In the first quarter 2017, one of the primary differences between the equity income we recorded for Fuji Xerox and our implied 25% share of Fuji Xerox’s first quarter 2017 net income in the summarized financial data is an additional amount recorded for the FXNZ adjustment. | ||
[2] | Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring Programs (Details
Restructuring Programs (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)Employees | Mar. 31, 2016USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Net Current Period Charges | [1] | $ 110 | |
Restructuring and Related Cost, Expected Number of Positions Eliminated (approximately) | Employees | 1,000 | ||
Three-Year Strategic Transformation Program - Professional Support Services | $ 10 | ||
Reversals | (2) | ||
Restructuring Charges | 112 | ||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 127 | ||
Provision | 112 | ||
Reversals | (2) | ||
Net Current Period Charges | [1] | 110 | |
Charges against reserve | (59) | $ (19) | |
Balance at end of period | 178 | ||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | |||
Charges against reserve | (59) | (19) | |
Asset impairments | 0 | 0 | |
Effects of foreign currency and other non-cash items | (1) | (2) | |
Restructuring Cash Payments | (60) | $ (21) | |
Severance and Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Net Current Period Charges | [1] | 108 | |
Reversals | (2) | ||
Restructuring Charges | 110 | ||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 104 | ||
Provision | 110 | ||
Reversals | (2) | ||
Net Current Period Charges | [1] | 108 | |
Charges against reserve | (58) | ||
Balance at end of period | 154 | ||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | |||
Charges against reserve | (58) | ||
Lease Cancellation and Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Net Current Period Charges | [1] | 2 | |
Reversals | 0 | ||
Restructuring Charges | 2 | ||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 23 | ||
Provision | 2 | ||
Reversals | 0 | ||
Net Current Period Charges | [1] | 2 | |
Charges against reserve | (1) | ||
Balance at end of period | 24 | ||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | |||
Charges against reserve | (1) | ||
Asset Impairments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Net Current Period Charges | [1],[2] | 0 | |
Reversals | [2] | 0 | |
Restructuring Charges | [2] | 0 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Provision | [2] | 0 | |
Reversals | [2] | 0 | |
Net Current Period Charges | [1],[2] | 0 | |
Charges against reserve | [2] | 0 | |
Balance at end of period | 0 | ||
Reconciliation To Consolidated Statements Of Cash Flows [Abstract] | |||
Charges against reserve | [2] | $ 0 | |
[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. |
Debt - Exchange (Details)
Debt - Exchange (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Debt Conversion [Line Items] | |
Principal Amount Exchanged | $ 600 |
4.07% Senior Notes Due March 2022 | 300 |
Cash Consideration | $ 322 |
Debt Exchange, New Senior Notes Coupon | 4.07% |
Debt Exchange, Conversion Premium | $ 22 |
Debt Exchange, New Senior Notes, Maturity Date | March 2,022 |
Loss on Extinguishment of Debt Exchanged for Cash | $ 9 |
Debt Exchange, Exchange Premium and Other Carrying Value Adjustments on Old Notes | 9 |
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 4 |
4.07% Senior Notes due March 17, 2022 [Member] | |
Debt Conversion [Line Items] | |
Debt Conversion, Converted Instrument, Issuance Date, Month and Year | March 2,017 |
4.07% Senior Notes Due March 2022 | $ 300 |
Senior Notes due May 2018 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 6.35% |
Principal Amount Exchanged | $ 260 |
4.07% Senior Notes Due March 2022 | 130 |
Cash Consideration | $ 143 |
Senior Notes due March 2019 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 2.75% |
Principal Amount Exchanged | $ 94 |
4.07% Senior Notes Due March 2022 | 47 |
Cash Consideration | $ 48 |
Senior Notes due December 2019 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 5.625% |
Principal Amount Exchanged | $ 96 |
4.07% Senior Notes Due March 2022 | 48 |
Cash Consideration | $ 56 |
Senior Notes due May 2020 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 2.80% |
Principal Amount Exchanged | $ 87 |
4.07% Senior Notes Due March 2022 | 44 |
Cash Consideration | $ 43 |
Senior Notes due August 2020 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 3.50% |
Principal Amount Exchanged | $ 38 |
4.07% Senior Notes Due March 2022 | 19 |
Cash Consideration | $ 20 |
Senior Notes due September 2020 [Member] | |
Debt Conversion [Line Items] | |
Coupon | 2.75% |
Principal Amount Exchanged | $ 25 |
4.07% Senior Notes Due March 2022 | 12 |
Cash Consideration | $ 12 |
Debt - Debt Issuances (Details)
Debt - Debt Issuances (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Mar. 15, 2017 | Feb. 01, 2017 | Mar. 04, 2016 | |
Debt Instrument [Line Items] | ||||
Cash Distribution, Conduent to Xerox - prior to distribution date | $ 1,800 | |||
Senior Notes due 2017 6.75% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Senior Notes due 2017 2.95% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | |||
Senior Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | $ 1,000 | |||
Conduent cash paid to Xerox, for Xerox debt repayment [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash Distribution, Conduent to Xerox - prior to distribution date | $ 1,000 |
Debt - Interest Income and Expe
Debt - Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Debt Disclosure [Abstract] | |||
Interest expense | [1] | $ 69 | $ 87 |
Interest income | [2] | $ 78 | $ 84 |
[1] | Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of 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 | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 3,125 | $ 3,149 |
Senior Notes Due 2021 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 300 | |
Derivative Asset, Fair Value, Gross Asset | $ 3 | |
Weighted Average Interest Rate Paid | 2.65% | |
Interest Rate Received | 4.50% | |
Euro U K Pound Sterling [Member] | ||
Derivative [Line Items] | ||
Change in Notional Value | $ (340) | |
U K Pound Sterling Euro [Member] | ||
Derivative [Line Items] | ||
Change in Notional Value | $ 290 |
Financial Instruments - Summary
Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | $ 11 | $ 53 |
Assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 35 | 92 |
Liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | (24) | (39) |
Senior Notes Due 2021 [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 3 | |
Derivatives Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | (8) | (20) |
Derivatives Designated as Hedging Instruments [Member] | Liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | (5) | (16) |
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 | 5 | 6 |
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 | (13) | (26) |
Derivatives Designated as Hedging Instruments [Member] | Currency options [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 0 | 0 |
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 | 0 |
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 | 3 | 4 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap [Member] | Other long-term liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative Asset (Liability) | 16 | 69 |
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 | 27 | 82 |
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 | $ (11) | $ (13) |
Financial Instruments - Summa51
Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||
Net losses recorded in AOCL expected to be reclassified to net income in the future | $ 5 | |
Foreign Currency Transaction Loss, before Tax | 3 | $ 4 |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||
Derivative gain recognized in OCI (effective portion) | 9 | 16 |
Interest Expense [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||
Derivative (loss) gain recognized in interest expense | (1) | 8 |
Hedged item gain (loss) recognized in interest expense | 1 | (8) |
Cost of Sales [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||
Summary of Derivative Instruments Gains (Losses) [Abstract] | ||
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion) | (4) | (1) |
Derivative loss reclassified from AOCL to income - Cost of Sales (ineffective) | 0 | 0 |
Underlying, Derivative | 0 | 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 | $ 4 | $ 71 |
Fair Value of Financial Asset52
Fair Value of Financial Assets and Liabilities - Recurring (Details) - Fair Value, Measurements, Recurring [Member] - Significant Other Observable Inputs (Level 2) [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Interest rate swaps | $ 3 | $ 4 |
Deferred compensation investments in mutual funds | 16 | 15 |
Total | 51 | 107 |
Liabilities: | ||
Deferred compensation plan liabilities | 18 | 17 |
Total | 42 | 56 |
Foreign Exchange Forward [Member] | ||
Assets: | ||
Foreign exchange contracts | 32 | 88 |
Liabilities: | ||
Foreign derivative contracts | $ 24 | $ 39 |
Fair Value of Financial Asset53
Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 1,045 | $ 2,223 |
Accounts receivable, net | 985 | 961 |
Short-term debt | 13 | 1,011 |
Long-term debt | 4,988 | 5,305 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,045 | 2,223 |
Accounts receivable, net | 985 | 961 |
Short-term debt | 13 | 1,015 |
Long-term debt | $ 5,151 | $ 5,438 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Components of Net Periodic Benefit Costs: | |||||
Defined Benefit Plans | $ 62 | $ 43 | |||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||
Net actuarial loss(1) | (8) | (123) | |||
Amortization of prior service credit | [1] | (2) | (2) | ||
Amortization of net actuarial loss | [1] | 66 | 52 | ||
Pension Plan [Member] | |||||
Contributions [Abstract] | |||||
Defined Benefit Plan, Contributions by Employer | 23 | 34 | $ 178 | ||
U.S. Plans [Member] | |||||
Components of Net Periodic Benefit Costs: | |||||
Service cost | 1 | 1 | |||
Interest cost | 34 | 37 | |||
Expected return on plan assets | (31) | (39) | |||
Recognized net actuarial loss | 5 | 5 | |||
Amortization of prior service credit | 0 | 0 | |||
Recognized settlement loss | 42 | 29 | |||
Defined Benefit Plans | 51 | 33 | |||
Defined contribution plans | 6 | 7 | |||
Net Periodic Benefit Cost | 57 | 40 | |||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||
Net actuarial loss(1) | [2] | 8 | 123 | ||
Amortization of prior service credit | 0 | 0 | |||
Amortization of net actuarial loss | (47) | (34) | |||
Total Recognized in Other Comprehensive Income(2) | [3] | (39) | 89 | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 18 | 129 | |||
Contributions [Abstract] | |||||
Defined Benefit Plan, Contributions by Employer | 6 | 6 | 24 | ||
Non-U.S. Plans [Member] | |||||
Components of Net Periodic Benefit Costs: | |||||
Service cost | 7 | 6 | |||
Interest cost | 39 | 50 | |||
Expected return on plan assets | (53) | (62) | |||
Recognized net actuarial loss | 19 | 17 | |||
Amortization of prior service credit | (1) | (1) | |||
Recognized settlement loss | 0 | 0 | |||
Defined Benefit Plans | 11 | 10 | |||
Defined contribution plans | 7 | 9 | |||
Net Periodic Benefit Cost | 18 | 19 | |||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||
Net actuarial loss(1) | [2] | 0 | 0 | ||
Amortization of prior service credit | 1 | 1 | |||
Amortization of net actuarial loss | (19) | (17) | |||
Total Recognized in Other Comprehensive Income(2) | [3] | (18) | (16) | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 0 | 3 | |||
Contributions [Abstract] | |||||
Defined Benefit Plan, Contributions by Employer | 17 | 28 | 154 | ||
Retiree Health [Member] | |||||
Components of Net Periodic Benefit Costs: | |||||
Service cost | 1 | 1 | |||
Interest cost | 7 | 8 | |||
Expected return on plan assets | 0 | 0 | |||
Recognized net actuarial loss | 0 | 1 | |||
Amortization of prior service credit | (1) | (1) | |||
Recognized settlement loss | 0 | 0 | |||
Defined Benefit Plans | 7 | 9 | |||
Net Periodic Benefit Cost | 7 | 9 | |||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||
Net actuarial loss(1) | [2] | 0 | 0 | ||
Amortization of prior service credit | 1 | 1 | |||
Amortization of net actuarial loss | 0 | (1) | |||
Total Recognized in Other Comprehensive Income(2) | [3] | 1 | 0 | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 8 | 9 | |||
Contributions [Abstract] | |||||
Defined Benefit Plan, Contributions by Employer | $ 14 | $ 14 | $ 61 | ||
Forecast | Pension Plan [Member] | |||||
Contributions [Abstract] | |||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | $ 350 | ||||
Forecast | U.S. Plans [Member] | |||||
Contributions [Abstract] | |||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 174 | ||||
Forecast | Non-U.S. Plans [Member] | |||||
Contributions [Abstract] | |||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 176 | ||||
Forecast | Retiree Health [Member] | |||||
Contributions [Abstract] | |||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 63 | ||||
Forecast | Domestic, tax-qualified, defined benefit plan [Domain] | |||||
Contributions [Abstract] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 150 | ||||
Minimum [Member] | Forecast | Domestic, tax-qualified, defined benefit plan [Domain] | |||||
Contributions [Abstract] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 15 | ||||
Voluntary contribution [Domain] | Forecast | Domestic, tax-qualified, defined benefit plan [Domain] | |||||
Contributions [Abstract] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 135 | ||||
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 12 - Employee Benefit Plans for additional information. | ||||
[2] | The net actuarial loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements. | ||||
[3] | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 14 - Other Comprehensive Income for related tax effects and the after-tax amounts. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 4,803 | ||
Noncontrolling Interests, Beginning Balance | 38 | ||
Total Equity, Beginning Balance | 4,841 | $ 9,117 | |
Comprehensive income, net attributable to Xerox | 185 | 122 | |
Comprehensive income, net attributable to noncontrolling interests | 3 | 2 | |
Comprehensive income, net including portion attributable to noncontrolling interests | 188 | 124 | |
Cash dividends declared - common | [1] | (64) | (79) |
Cash dividends declared - preferred | [2] | (4) | (6) |
Stock option and incentive plans, net | 6 | 15 | |
Distributions to noncontrolling interests | (1) | (8) | |
Ending Balance | 4,926 | ||
Noncontrolling Interests, Ending Balance | 40 | ||
Total Equity, Ending Balance | $ 4,966 | $ 9,163 | |
Dividends per common share (in dollars per share) | $ 0.0625 | $ 0.0775 | |
Treasury Stock, Shares, Acquired (in shares) | 0 | ||
Series A Preferred Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Dividends per preferred share (in dollars per share) | $ 20 | ||
Series B Preferred Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Dividends per preferred share (in dollars per share) | $ 20 | ||
Xerox Shareholders’ Equity | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 4,803 | $ 9,074 | |
Comprehensive income, net attributable to Xerox | 185 | 122 | |
Cash dividends declared - common | [1] | (64) | (79) |
Cash dividends declared - preferred | [2] | (4) | (6) |
Stock option and incentive plans, net | 6 | 15 | |
Distributions to noncontrolling interests | 0 | 0 | |
Ending Balance | 4,926 | 9,126 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,014 | 1,013 | |
Comprehensive income, 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 | 3 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | |
Ending Balance | 1,017 | 1,013 | |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 3,098 | 3,017 | |
Comprehensive income, 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 | 3 | 15 | |
Distributions to noncontrolling interests | 0 | 0 | |
Ending Balance | 3,101 | 3,032 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 5,039 | 9,686 | |
Comprehensive income, net attributable to Xerox | 16 | 34 | |
Cash dividends declared - common | [1] | (64) | (79) |
Cash dividends declared - preferred | [2] | (4) | (6) |
Stock option and incentive plans, net | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | |
Ending Balance | 4,987 | 9,635 | |
AOCL | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | [3] | (4,348) | (4,642) |
Comprehensive income, net attributable to Xerox | [3] | 169 | 88 |
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 |
Distributions to noncontrolling interests | [3] | 0 | 0 |
Ending Balance | [3] | (4,179) | (4,554) |
Non-controlling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Noncontrolling Interests, Beginning Balance | 38 | 43 | |
Comprehensive income, net attributable to noncontrolling interests | 3 | 2 | |
Cash dividends declared - common | [1] | 0 | 0 |
Cash dividends declared - preferred | [2] | 0 | 0 |
Stock option and incentive plans, net | 0 | 0 | |
Distributions to noncontrolling interests | (1) | (8) | |
Noncontrolling Interests, Ending Balance | $ 40 | $ 37 | |
[1] | Cash dividends declared on common stock of $0.0625 per share in 2017 and $0.0775 per share in 2016. | ||
[2] | Cash dividends declared on preferred stock of $20.00 per share in 2017 and 2016. | ||
[3] | Refer to Note 14 - Other Comprehensive Income for components of AOCL. |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss) [Abstract] | ||||
Translation Adjustments Gains, pre-tax | $ 137 | $ 193 | ||
Translation Adjustments Gains, net of Tax | [1] | 136 | 191 | |
Changes in fair value of cash flow hedges - gains, pre-tax | 9 | 16 | ||
Changes in fair value of cash flow hedges - gains, net of tax | 6 | 9 | ||
Changes in cash flow hedges reclassed to earnings, pre-tax | [2] | 4 | 1 | |
Changes in cash flow hedges reclassed to earnings, net of tax | [2] | 2 | 0 | |
Net Unrealized Gains, pre-tax | 13 | 17 | ||
Net Unrealized Gains, net of tax | [1] | 8 | 9 | |
Net actuarial losses, pre-tax | (8) | (123) | ||
Net actuarial losses, net of tax | (5) | (76) | ||
Prior service amortization, pre-tax | [3] | (2) | (2) | |
Prior service amortization, net of tax | [3] | (1) | (1) | |
Actuarial loss amortization/settlement, pre-tax | [3] | 66 | 52 | |
Actuarial loss amortization/settlement, net of tax | [3] | 44 | 35 | |
Fuji Xerox changes in defined benefit plans, net, pre-tax | [4] | 13 | (75) | |
Fuji Xerox changes in defined benefit plans, net, net of tax | [4] | 13 | (75) | |
Other (losses) gains, pre-tax | [5] | (25) | 5 | |
Other (losses) gains, net of tax | [5] | (25) | 5 | |
Change in Defined Benefit Plans Gains (Losses), Pre-tax | 44 | (143) | ||
Change in Defined Benefit Plans Gains (Losses), Net of Tax | [1] | 26 | (112) | |
Other Comprehensive Income, pre-tax | 194 | 67 | ||
Other Comprehensive Income, net of tax | [1] | 170 | 88 | |
Other comprehensive income attributable to noncontrolling interest, pre-tax | 1 | 0 | ||
Other comprehensive income attributable to noncontrolling interest, net of tax | 1 | 0 | ||
Other Comprehensive Income Attributable to Xerox, pre-tax | 193 | 67 | ||
Other Comprehensive Income, Attributable to Xerox, net of tax | 169 | $ 88 | ||
Cumulative translation adjustments | (2,139) | $ (2,274) | ||
Other unrealized losses, net | (5) | (13) | ||
Benefit plans net actuarial losses and prior service credits | [6] | (2,035) | (2,061) | |
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ (4,179) | $ (4,348) | ||
[1] | Refer to Note 14 - Other Comprehensive Income for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. | |||
[2] | Reclassified to Cost of sales - refer to Note 10 - Financial Instruments for additional information regarding our cash flow hedges. | |||
[3] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 12 - 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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic Earnings (Loss) per Share: | ||
Net income from continuing operations attributable to Xerox | $ 22 | $ 69 |
Adjusted Net income from continuing operations available to common shareholders | 18 | 63 |
Net loss from discontinued operations attributable to Xerox | (6) | (35) |
Adjusted Net income available to common shareholders | $ 12 | $ 28 |
Weighted average common shares outstanding (in shares) | 1,016,151 | 1,013,033 |
Continuing operations (dollars per share) | $ 0.02 | $ 0.06 |
Discontinued operations (dollars per share) | (0.01) | (0.03) |
Total Basic Earnings per Share | $ 0.01 | $ 0.03 |
Diluted Earnings (Loss) per Share: | ||
Net income from continuing operations attributable to Xerox | $ 22 | $ 69 |
Adjusted Net income from continuing operations available to common shareholders | 18 | 63 |
Net loss from discontinued operations attributable to Xerox | (6) | (35) |
Adjusted Net income available to common shareholders | $ 12 | $ 28 |
Weighted average common shares outstanding (in shares) | 1,016,151 | 1,013,033 |
Common shares issuable with respect to: | ||
Adjusted Weighted Average Common Shares Outstanding - Diluted (in shares) | 1,024,568 | 1,020,523 |
Continuing operations (dollars per share) | $ 0.02 | $ 0.06 |
Discontinued operations (dollars per share) | (0.01) | (0.03) |
Total Diluted Earnings per Share | $ 0.01 | $ 0.03 |
Stock options [Member] | ||
Common shares issuable with respect to: | ||
Stock options and Restricted stock and performance shares (in shares) | 0 | 850 |
Restricted Stock and Performance Shares [Member] | ||
Common shares issuable with respect to: | ||
Stock options and Restricted stock and performance shares (in shares) | 8,417 | 6,640 |
Convertible Preferred Stock [Member] | ||
Common shares issuable with respect to: | ||
Convertible preferred stock (in shares) | 0 | 0 |
Earnings (loss) per share, basic [Member] | ||
Basic Earnings (Loss) per Share: | ||
Accrued dividends on preferred stock | $ (4) | $ (6) |
Earnings (loss) per share, diluted [Member] | ||
Basic Earnings (Loss) per Share: | ||
Accrued dividends on preferred stock | $ (4) | $ (6) |
Earnings per Share - Anti Dilut
Earnings per Share - Anti Dilutive Securities (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 42,715 | 47,788 |
Dividends per common share (in dollars per share) | $ 0.0625 | $ 0.0775 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 0 | 2,104 |
Restricted Stock and Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 15,749 | 18,718 |
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 |
Contingencies and Litigation (D
Contingencies and Litigation (Details) $ in Millions | May 09, 2014 | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Multiplier Of Overpayment Amounts | 2 | ||
Brazil Tax And Labor Contingencies [Member] | |||
Loss Contingencies [Line Items] | |||
Unreserved tax and labor contingencies | $ 640 | $ 750 | |
Escrow cash deposits | 87 | ||
Letters of Credit Outstanding, Amount | 152 | ||
Surety Bonds Outstanding, Amount | $ 98 |
Contingencies and Litigation -
Contingencies and Litigation - Other Contingencies (Details) $ in Millions | Mar. 31, 2017USD ($) |
Performance Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Maximum exposure, undiscounted | $ 398 |