Adoption of New Revenue Recognition Standard (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

The impacts of adopting ASC Topic 606 on our Condensed Consolidated Balance Sheets were as follows:



	As of September 30, 2018
	Superseded Revenue Guidance⁽¹⁾		Adjustments			As Reported
Deferred tax assets	$	830	$	(33	)	$	797
Other long-term assets	822		142			964
Retained earnings	4,888		109			4,997

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(1)	Reflects balance of account under revenue recognition guidance superseded by ASC Topic 606.

The following table reflects the adjustment of selected lines from our Condensed Consolidated Statements of Income to the recasted amounts as a result of the adoption of this update:



	Three Months Ended September 30, 2017
	As Reported		Adjustment			As Recasted
Cost of sales	$	594	$	(1	)	$	593
Cost of services, maintenance and rentals	882		(12		)	870
Research, development and engineering expenses	108		(3		)	105
Selling, administrative and general expenses	648		(18		)	630
Restructuring and related costs	36		(1		)	35
Other expenses, net	17		35			52



	Nine Months Ended September 30, 2017
	As Reported		Adjustment			As Recasted
Cost of sales	$	1,780	$	(3	)	$	1,777
Cost of services, maintenance and rentals	2,666		(43		)	2,623
Research, development and engineering expenses	332		(14		)	318
Selling, administrative and general expenses	1,955		(65		)	1,890
Restructuring and related costs	196		(4		)	192
Other expenses, net	105		129			234

Disaggregation of Revenue [Table Text Block]

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Primary geographical markets⁽¹⁾:
United States	$	1,414	$	1,500	$	4,307	$	4,502
Europe	587		628		1,923		1,942
Canada	133		154		424		449
Other	218		215		643		625
Total Revenues	$	2,352	$	2,497	$	7,297	$	7,518

Major product and services lines:
Equipment⁽²⁾	$	511	$	520	$	1,571	$	1,569
Supplies, paper and other sales	432		461		1,322		1,358
Maintenance agreements⁽³⁾	587		624		1,854		1,925
Service arrangements⁽⁴⁾	587		637		1,824		1,895
Rental and other	170		182		522		548
Financing	65		73		204		223
Total Revenues	$	2,352	$	2,497	$	7,297	$	7,518

Sales channels:
Direct equipment lease⁽⁵⁾	$	175	$	165	$	507	$	488
Distributors & resellers⁽⁶⁾	304		331		1,005		1,024
Customer direct	464		485		1,381		1,415
Total Sales	$	943	$	981	$	2,893	$	2,927

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(1)	Geographic area data is based upon the location of the subsidiary reporting the revenue.


(2)	For the three and nine months ended September 30, 2017, Equipment sale revenues exclude $11 and $31, respectively, of equipment-related training revenue, which was classified as Services under previous revenue guidance - see "Adoption Summary" above.


(3)	Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold in our small and mid-sized business (SMB) focused channels and through our channel partners as Xerox Partner Print Services (XPPS).


(4)	Primarily includes revenues from our Managed Document Services (MDS) offerings. Also includes revenues from embedded operating leases, which were not significant.


(5)	Primarily reflects direct sales through bundled lease arrangements.


(6)	Primarily reflects sales through our two-tier distribution channels.