Shareholders' Equity of Xerox

9 Months Ended

Sep. 30, 2019

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

For information related to the Reorganization of Xerox and Xerox Holdings, refer to Note 1 - Basis of Presentation - Corporate Reorganization. The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Holdings Shareholders’ Equity			Non-controlling Interests			Total Equity
Balance at June 30, 2019	$	225		$	3,124		$	(131	)	$	5,391		$	(3,647	)	$	4,962		$	30		$	4,992
Comprehensive income (loss), net	—			—			—			221			(203		)	18			2			20
Cash dividends declared - common⁽³⁾	—			—			—			(56		)	—			(56		)	—			(56		)
Cash dividends declared - preferred⁽⁴⁾	—			—			—			(4		)	—			(4		)	—			(4		)
Stock option and incentive plans, net	—			3			—			—			—			3			—			3
Payments to acquire treasury stock, including fees	—			—			(68		)	—			—			(68		)	—			(68		)
Cancellation of treasury stock	(4		)	(127		)	131			—			—			—			—			—
Distributions to noncontrolling interests	—			—			—			—			—			—			(1		)	(1		)
Balance at September 30, 2019	$	221		$	3,000		$	(68	)	$	5,552		$	(3,850	)	$	4,855		$	31		$	4,886



	Common Stock		Additional Paid-in Capital		Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Holdings Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at June 30, 2018	$	255	$	3,920	$	—		$	4,974		$	(3,772	)	$	5,377		$	31		$	5,408
Comprehensive income, net	—		—		—			89			61			150			4			154
Cash dividends declared - common⁽³⁾	—		—		—			(62		)	—			(62		)	—			(62		)
Cash dividends declared - preferred⁽⁴⁾	—		—		—			(4		)	—			(4		)	—			(4		)
Stock option and incentive plans, net	1		10		—			—			—			11			—			11
Payments to acquire treasury stock, including fees	—		—		(284		)	—			—			(284		)	—			(284		)
Distributions to noncontrolling interests	—		—		—			—			—			—			(1		)	(1		)
Balance at September 30, 2018	$	256	$	3,930	$	(284	)	$	4,997		$	(3,711	)	$	5,188		$	34		$	5,222



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Holdings Shareholders’ Equity			Non-controlling Interests			Total Equity
Balance at December 31, 2018	$	232		$	3,321		$	(55	)	$	5,072		$	(3,565	)	$	5,005		$	34		$	5,039
Cumulative effect of change in accounting principle⁽²⁾	—			—			—			127			(127		)	—			—			—
Comprehensive income (loss), net	—			—			—			535			(158		)	377			8			385
Cash dividends declared - common⁽³⁾	—			—			—			(171		)	—			(171		)	—			(171		)
Cash dividends declared - preferred⁽⁴⁾	—			—			—			(11		)	—			(11		)	—			(11		)
Stock option and incentive plans, net	—			23			—			—			—			23			—			23
Payments to acquire treasury stock, including fees	—			—			(368		)	—			—			(368		)	—			(368		)
Cancellation of treasury stock	(11		)	(344		)	355			—			—			—			—			—
Distributions to noncontrolling interests	—			—			—			—			—			—			(11		)	(11		)
Balance at September 30, 2019	$	221		$	3,000		$	(68	)	$	5,552		$	(3,850	)	$	4,855		$	31		$	4,886



	Common Stock		Additional Paid-in Capital		Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Holdings Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at December 31, 2017	$	255	$	3,893	$	—		$	4,856		$	(3,748	)	$	5,256		$	37		$	5,293
Cumulative effect of change in accounting principles	—		—		—			120			—			120			—			120
Comprehensive income, net	—		—		—			224			37			261			9			270
Cash dividends declared - common⁽³⁾	—		—		—			(192		)	—			(192		)	—			(192		)
Cash dividends declared - preferred⁽⁴⁾	—		—		—			(11		)	—			(11		)	—			(11		)
Stock option and incentive plans, net	1		37		—			—			—			38			—			38
Payments to acquire treasury stock, including fees	—		—		(284		)	—			—			(284		)	—			(284		)
Distributions to noncontrolling interests	—		—		—			—			—			—			(12		)	(12		)
Balance at September 30, 2018	$	256	$	3,930	$	(284	)	$	4,997		$	(3,711	)	$	5,188		$	34		$	5,222

_____________________________


(1)	Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.


(2)	Refer to Note 2 - Recent Accounting Pronouncements - Income Taxes, for additional information related to the adoption of ASU 2018-02.


(3)	Cash dividends declared on common stock for the three and nine months ended September 30, 2019 and 2018 were $0.25 per share and $0.75 per share, respectively.


(4)	Cash dividends declared on preferred stock for the three and nine months ended September 30, 2019 and 2018 were $20.00 per share and $60.00 per share, respectively.

Treasury Stock

The following is a summary of the purchases of common stock during 2019:



	Shares		Amount
Balance at December 31, 2018	2,067		$	55
Purchases⁽¹⁾	11,575		368
Cancellations	(11,313	)	(355		)
Balance at September 30, 2019	2,329		$	68

_____________________________

(1)

Includes associated fees.

XEROX CORPORATION

Shareholders' Equity of Xerox

Shareholders’ Equity of Xerox

(shares in thousands)



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Shareholders’ Equity			Non-controlling Interests			Total Equity
Balance at June 30, 2019	$	225		$	3,124		$	(131	)	$	5,391		$	(3,647	)	$	4,962		$	30		$	4,992
Comprehensive income (loss), net	—			—			—			221			(203		)	18			2			20
Dividends declared to parent	—			—			—			(58		)	—			(58		)	—			(58		)
Stock option and incentive plans, net	—			(2		)	—			—			—			(2		)	—			(2		)
Cancellation of treasury stock	(4		)	(127		)	131			—			—			—			—			—
Distributions to noncontrolling interests	—			—			—			—			—			—			(1		)	(1		)
Reorganization⁽³⁾	(221		)	446			—			—			—			225			—			225
Balance at September 30, 2019	$	—		$	3,441		$	—		$	5,554		$	(3,850	)	$	5,145		$	31		$	5,176



	Common Stock		Additional Paid-in Capital		Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at June 30, 2018	$	255	$	3,920	$	—		$	4,974		$	(3,772	)	$	5,377		$	31		$	5,408
Comprehensive income, net	—		—		—			89			61			150			4			154
Cash dividends declared - common	—		—		—			(62		)	—			(62		)	—			(62		)
Cash dividends declared - preferred	—		—		—			(4		)	—			(4		)	—			(4		)
Stock option and incentive plans, net	1		10		—			—			—			11			—			11
Payments to acquire treasury stock, including fees	—		—		(284		)	—			—			(284		)	—			(284		)
Distributions to noncontrolling interests	—		—		—			—			—			—			(1		)	(1		)
Balance at September 30, 2018	$	256	$	3,930	$	(284	)	$	4,997		$	(3,711	)	$	5,188		$	34		$	5,222



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Shareholders’ Equity			Non-controlling Interests			Total Equity
Balance at December 31, 2018	$	232		$	3,321		$	(55	)	$	5,072		$	(3,565	)	$	5,005		$	34		$	5,039
Cumulative effect of change in accounting principle⁽²⁾	—			—			—			127			(127		)	—			—			—
Comprehensive income (loss), net	—			—			—			535			(158		)	377			8			385
Cash dividends declared - common	—			—			—			(115		)	—			(115		)	—			(115		)
Cash dividends declared - preferred	—			—			—			(7		)	—			(7		)	—			(7		)
Dividends declared to parent	—			—			—			(58		)	—			(58		)	—			(58		)
Stock option and incentive plans, net	—			18			—			—			—			18			—			18
Payments to acquire treasury stock, including fees	—			—			(300		)	—			—			(300		)	—			(300		)
Cancellation of treasury stock	(11		)	(344		)	355			—			—			—			—			—
Distributions to noncontrolling interests	—			—			—			—			—			—			(11		)	(11		)
Reorganization⁽³⁾	(221		)	446			—			—			—			225			—			225
Balance at September 30, 2019	$	—		$	3,441		$	—		$	5,554		$	(3,850	)	$	5,145		$	31		$	5,176



	Common Stock		Additional Paid-in Capital		Treasury Stock			Retained Earnings			AOCL⁽¹⁾			Xerox Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at December 31, 2017	$	255	$	3,893	$	—		$	4,856		$	(3,748	)	$	5,256		$	37		$	5,293
Cumulative effect of change in accounting principles	—		—		—			120			—			120			—			120
Comprehensive income, net	—		—		—			224			37			261			9			270
Cash dividends declared - common	—		—		—			(192		)	—			(192		)	—			(192		)
Cash dividends declared - preferred	—		—		—			(11		)	—			(11		)	—			(11		)
Stock option and incentive plans, net	1		37		—			—			—			38			—			38
Payments to acquire treasury stock, including fees	—		—		(284		)	—			—			(284		)	—			(284		)
Distributions to noncontrolling interests	—		—		—			—			—			—			(12		)	(12		)
Balance at September 30, 2018	$	256	$	3,930	$	(284	)	$	4,997		$	(3,711	)	$	5,188		$	34		$	5,222

_____________________________


(1)	Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.


(2)	Refer to Note 2 - Recent Accounting Pronouncements - Income Taxes, for additional information related to the adoption of ASU 2018-02.


(3)	Refer to Note 1 - Basis of Presentation for additional information on the Reorganization of Xerox.

Treasury Stock

The following is a summary of the purchases of common stock during 2019:



	Shares		Amount
Balance at December 31, 2018	2,067		$	55
Purchases⁽¹⁾	9,246		300
Cancellations	(11,313	)	(355		)
Balance at September 30, 2019	—		$	—

_____________________________

(1)

Includes associated fees.