Debt

Term Loan Facility

On March 4, 2016, Xerox Corporation entered into a $1.0 billion senior unsecured term facility. The facility was fully drawn by April 1, 2016 ($750 was drawn on March 11, 2016 and $250 on April 1, 2016) and must be repaid on the earlier of 364 days or upon receipt of financing related to the separation of Xerox into two independent publicly traded companies. Refer to Note 1- Basis of Presentation for information regarding the planned Company separation.

The proceeds of the facility were used to repay maturing debt of $950 ($700 Senior Notes on March 15, 2016 and $250 Notes on April 1, 2016).

Interest Expense and Income

Interest expense and interest income were as follows:



	Three Months Ended March 31,
	2016		2015
Interest expense⁽¹⁾	$	88	$	89
Interest income⁽²⁾	85		92

____________


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


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