Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of Short-term borrowings

Short-term borrowings were as follows:

	December 31,
	2017		2016
Notes Payable	$	6	$	4
Current maturities of long-term debt	276		1,007
Total Short-term Debt	$	282	$	1,011

Schedule of Long-term Debt

Long-term debt was as follows:

					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2017(3)		2017			2016
Xerox Corporation
Senior Notes due 2017 (1)					$	—		$	500
Senior Notes due 2017 (1)					—			500
Notes due 2018	0.57	%	0.57	%	1			1
Senior Notes due 2018	6.35	%	6.09	%	265			1,000
Senior Notes due 2019	2.75	%	2.58	%	406			500
Senior Notes due 2019	5.63	%	5.48	%	554			650
Senior Notes due 2020	2.80	%	2.50	%	313			400
Senior Notes due 2020	3.50	%	3.47	%	362			400
Senior Notes due 2020	2.75	%	2.67	%	375			400
Senior Notes due 2021	4.50	%	5.39	%	1,062			1,062
Senior Notes due 2022	4.07	%	4.07	%	300			—
Senior Notes due 2023	3.63	%	3.64	%	1,000			—
Senior Notes due 2024	3.80	%	3.84	%	300			300
Senior Notes due 2035	4.80	%	4.84	%	250			250
Senior Notes due 2039	6.75	%	6.78	%	350			350
Subtotal - Notes					$	5,538		$	6,313
Other Debt
Capital lease obligations			4.11	%	$	35		$	31
Other					—			1
Subtotal - Other Debt					$	35		$	32
Principal debt balance					$	5,573		$	6,345
Unamortized discount					(35		)	(43		)
Debt issuance costs					(32		)	(21		)
Fair value adjustments(2)
Terminated swaps					4			27
Current swaps					1			4
Less: current maturities					(276		)	(1,007		)
Total Long-term Debt					$	5,235		$	5,305

_____________

(1) Senior Notes maturing in 2017 were paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 5 - Divestitures for additional information.

(2) 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.

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

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:

2018(1)		2019		2020		2021		2022		Thereafter		Total
$	274	$	968	$	1,059	$	1,069	$	301	$	1,902	$	5,573

_____________

(1) Quarterly long-term debt maturities from continuing operations for 2018 are $2, $268, $2 and $2 for the first, second, third and fourth quarters, respectively.

Schedule of Debt Exchange

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

Schedule Of Interest Expense Paid on Debt

Interest paid on our short-term and long-term debt amounted to $268, $352 and $365 for the years ended December 31, 2017, 2016 and 2015, respectively.

	Year Ended December 31,
	2017		2016		2015
Interest paid - continuing operations	$	268	$	332	$	356
Interest paid - discontinued operations	—		20		9
Total interest paid on debt	$	268	$	352	$	365

Interest Income and Interest Expense Disclosure

Interest expense and interest income was as follows:

	Year Ended December 31,
	2017		2016		2015
Interest expense(1)	$	252	$	309	$	346
Interest income(2)	302		330		352

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

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