Supplementary Financial Information

9 Months Ended

Sep. 30, 2023

Supplemental Financial Information [Abstract]

Cash, Cash Equivalents and Restricted Cash

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 21 - 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.

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


	September 30, 2023		December 31, 2022
Cash and cash equivalents	$	532	$	1,045
Restricted cash
Litigation deposits in Brazil	26		39
Escrow and cash collections related to secured borrowing arrangements(1)	37		54
Other restricted cash	22		1
Total Restricted cash	85		94
Cash, cash equivalents and restricted cash	$	617	$	1,139

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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 is reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2023		December 31, 2022
Other current assets	$	58	$	55
Other long-term assets	27		39
Total Restricted cash	$	85	$	94

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Location in Statement of Cash Flows	Nine Months Ended September 30,
Source/(Use)			2023		2022
Provision for receivables	Operating		$	23	$	25
Provision for inventory	Operating		14		23
Depreciation of buildings and equipment	Operating		45		51
Depreciation and obsolescence of equipment on operating leases	Operating		83		89
Amortization of internal use software	Operating		28		34

Amortization of acquired intangible assets	Operating		33		31
Amortization of patents(1)	Operating		7		8
Amortization of customer contract costs(2)	Operating		51		55

Cost of additions to land, buildings and equipment	Investing		(21)		(24)
Cost of additions to internal use software	Investing		(6)		(15)
Payments to acquire noncontrolling interests - Xerox Holdings	Investing		(3)		(13)
Common stock dividends - Xerox Holdings	Financing		(120)		(120)
Preferred stock dividends - Xerox Holdings	Financing		(11)		(11)


Payments to noncontrolling interests	Financing		(2)		(1)
Investment from noncontrolling interests	Financing		—		6
Repurchases related to stock-based compensation - Xerox Holdings	Financing		(7)		(10)

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(1)Amortization of patents is reported in (Increase) decrease in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows.

(2)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.

Supplier Finance Programs

The Company has a program through a financial institution that enables vendors and suppliers, at their option, to receive early payment for their invoices. The program operates in a similar manner to a purchasing card program, however with this program the Company receives invoices associated with those vendors and suppliers participating in the program and confirms and validates those invoices and amounts due before passing the invoices on to the financial institution for early payment at a discounted amount. The financial institution subsequently invoices the Company for the stated or full amount of the invoices paid early and we are required to make payment within 45 days of the statement date. The overall impact of the program generally results in the Company paying its supplier and vendor invoices consistent with their original terms. This program is generally available to all non-inventory vendors and suppliers. Spending associated with this program during the three and nine months ended September 30, 2023 was approximately $30 and $90, respectively. All outstanding amounts related to the program are recorded within Accounts payable in our Condensed Consolidated Balance Sheets, and the associated payments are included in operating activities within our Condensed Consolidated Statements of Cash Flows. The amount due to vendors and suppliers participating in this program and included in Accounts payable was approximately $30 and $40 as of September 30, 2023 and December 31, 2022, respectively.