Shareholders' Equity of Xerox (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Stockholders Equity

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, 2020	$	213	$	2,722	$	—	$	6,223	$	(3,681)	$	5,477	$	4	$	5,481
Comprehensive income, net	—		—		—		90		88		178		—		178
Cash dividends declared - common(2)	—		—		—		(51)		—		(51)		—		(51)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)
Stock option and incentive plans, net	1		(3)		—		—		—		(2)		—		(2)
Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452

	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(2)	—		—		—		(56)		—		(56)		—		(56)
Cash dividends declared - preferred(3)	—		—		—		(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 December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594
Comprehensive income, net	—		—		—		115		53		168		—		168
Cash dividends declared - common(2)	—		—		—		(158)		—		(158)		—		(158)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)
Stock option and incentive plans, net	1		11		—		—		—		12		—		12
Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)
Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452

	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	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common(2)	—		—		—		(171)		—		(171)		—		(171)
Cash dividends declared - preferred(3)	—		—		—		(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

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Cash dividends declared on common stock for the three and nine months ended September 30, 2020 and 2019 were $0.25 per share and $0.75 per share, respectively.

(3)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2020 and 2019 were $20.00 per share and $60.00 per share, respectively.

XEROX CORPORATION

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox.

	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	—	$	3,515	$	—	$	5,925	$	(3,681)	$	5,759	$	4	$	5,763
Comprehensive income, net	—		—		—		101		88		189		—		189
Dividends declared to parent	—		—		—		(55)		—		(55)		—		(55)
Capital contributions from parent(2)	—		1,494		—		—		—		1,494		—		1,494
Transfers to parent	—		(150)		—		—		—		(150)		—		(150)
Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241

	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	(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 Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	3,266	$	—	$	6,247	$	(3,646)	$	5,867	$	7	$	5,874
Comprehensive income, net	—		—		—		126		53		179		—		179
Dividends declared to parent	—		—		—		(402)		—		(402)		—		(402)
Capital contributions from parent(2)	—		1,494				—		—		1,494		—		1,494
Transfers from parent	—		99		—		—		—		99		—		99
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)
Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241

	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	—		—		—		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	(221)		446		—		—		—		225		—		225
Balance at September 30, 2019	$	—	$	3,441	$	—	$	5,554	$	(3,850)	$	5,145	$	31	$	5,176

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Primarily represents the contribution of aggregate net debt proceeds received from Senior Note offerings in the third quarter 2020 from Xerox Holdings to Xerox Corporation. Refer to Note 13 - Debt for additional information regarding the Senior Note offerings.