Supplementary Financial Information

9 Months Ended

Sep. 30, 2021

Supplemental Financial Information [Abstract]

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	2,209	$	2,625
Restricted cash
Litigation deposits in Brazil	36		42
Escrow and cash collections related to secured borrowing arrangements(1)	17		22
Other restricted cash	—		2
Total Restricted cash	53		66
Cash, cash equivalents and restricted cash	$	2,262	$	2,691

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(1)Represents collections on finance receivables pledged for secured borrowings that will be remitted to lenders in the following month.

Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation as well as cash collections on finance receivables that were pledged for secured borrowings. As more fully discussed in Note 20 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to

escrow as a condition of continuing the litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Restricted cash was reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2021		December 31, 2020
Other current assets	$	17	$	23
Other long-term assets	36		43
Total Restricted cash	$	53	$	66

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Provision for receivables	$	(2)	$	17	$	13	$	104
Provision for inventory	6		6		25		20
Provision for product warranty	2		3		6		6
Depreciation of buildings and equipment	19		21		57		64
Depreciation and obsolescence of equipment on operating leases	37		45		120		142
Amortization of internal use software	10		11		30		32

Amortization of acquired intangible assets	13		13		42		34
Amortization of customer contract costs(1)	20		20		60		63
Cost of additions to land, buildings and equipment	9		9		21		36
Cost of additions to internal use software	10		9		31		24
Common stock dividends - Xerox Holdings Corporation	45		57		146		165
Preferred stock dividends - Xerox Holdings Corporation	4		4		11		11



Repurchases related to stock-based compensation - Xerox Holdings Corporation	—		9		14		19

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(1)Amortization of customer contract costs is reported in (Increase) decrease in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows. Refer to Note 3 - Revenue - Contract Costs for additional information.

Fuji Xerox Technology Agreement (TA)

As previously disclosed, our TA with Fuji Xerox (now known as FUJIFILM Business Innovation Corp.) expired on March 31, 2021. The TA included a provision that allowed Fuji Xerox continued use of the Xerox brand trademark for two years after the date of termination of the TA as it transitions to a new brand in exchange for an upfront prepaid fixed royalty of $100. Fuji Xerox elected to continue its use of the Xerox brand trademark over the two year period and, therefore, in April 2021, made the $100 upfront payment due under the TA, which is included in Operating cash flows for the nine months ended September 30, 2021.

We expect to recognize the revenue associated with this extended brand license ratably over the two year transition period. Accordingly, any potential entry by Xerox for Xerographic products into the Fuji Xerox territory under the Xerox brand will be deferred to at least April 1, 2023. The product supply agreements with Fuji Xerox will continue to be effective despite the termination of the TA, and Fuji Xerox and Xerox will continue to operate as each other’s product supplier under existing or new purchase/supply agreements.