Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of Short-term Debt

Short-term borrowings were as follows:

	December 31,
	2014			2013
Commercial paper	$	150		$	—
Notes Payable	1			5
Current maturities of long-term debt	1,307			1,112
Discontinued operations - capital leases (1)	(31		)	—
Total Short-term Debt	$	1,427		$	1,117

____________

(1) Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule of Long-term Debt Instruments

Long-term debt was as follows:

			December 31,
	Weighted Average Interest Rates at December 31, 2014(2)		2014			2013
Xerox Corporation
Convertible Notes due 2014	—	%	$	—		$	9
Senior Notes due 2014	—	%	—			750
Floating Rate Notes due 2014	—	%	—			300
Senior Notes due 2015	4.29	%	1,000			1,000
Notes due 2016	7.20	%	250			250
Senior Notes due 2016	6.48	%	700			700
Senior Notes due 2017	6.83	%	500			500
Senior Notes due 2017	2.98	%	500			500
Notes due 2018	0.57	%	1			1
Senior Notes due 2018	6.37	%	1,000			1,000
Senior Notes due 2019	2.77	%	500			500
Senior Notes due 2019	5.66	%	650			650
Senior Notes due 2020	2.81	%	400			—
Senior Notes due 2021	5.39	%	1,062			1,062
Senior Notes due 2024	3.84	%	300			—
Senior Notes due 2039	6.78	%	350			350
Subtotal - Xerox Corporation			$	7,213		$	7,572
Subsidiary Companies
Senior Notes due 2015	4.25	%	250			250
Borrowings secured by other assets	3.85	%	180			146
Other	1.20	%	3			6
Subtotal - Subsidiary Companies			$	433		$	402
Principal debt balance			7,646			7,974
Unamortized discount			(54		)	(58		)
Fair value adjustments(1)
Terminated swaps			68			100
Current swaps			5			—
Less: current maturities			(1,307		)	(1,112		)
Discontinued Operations (3)			(44		)	—
Total Long-term Debt			$	6,314		$	6,904

 ____________

(1) Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment.

(2) Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt.

(3) Represents long-term capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule of Maturities of Long-term Debt

Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows:

	2015(1)		2016		2017		2018		2019		Thereafter		Total
Continuing operations	$	1,276	$	974	$	1,023	$	1,017	$	1,158	$	2,123	$	7,571
Discontinued operations (2)	31		24		14		6		—		—		75
Total Long-term Principal Payments	$	1,307	$	998	$	1,037	$	1,023	$	1,158	$	2,123	$	7,646

 _____________

(1) Quarterly long-term debt maturities from continuing operations for 2015 are $1,007, $256, $7 and $6 for the first, second, third and fourth quarters, respectively.

(2) Represents payments on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule Of Interest Expense And Interest Income

Interest expense and interest income was as follows:

	Year Ended December 31,
	2014		2013		2012
Interest expense(1) (3)	$	377	$	403	$	427
Interest income(2)	397		494		610

 ___________

(1) Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income.

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

(3) Excludes interest on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule of Net Payments/Proceeds on Other Debt

Net (payments) proceeds on debt as shown on the Consolidated Statements of Cash Flows was as follows:

	Year Ended December 31,
	2014			2013			2012
Net proceeds (payments) on short-term debt	$	145		$	5		$	(108	)
Proceeds from issuance of long-term debt	808			617			1,116
Payments on long-term debt	(1,128		)	(1,056		)	(1,116		)
Net Payments on Other Debt	$	(175	)	$	(434	)	$	(108	)