We engage in restructuring actions and other transformation efforts in order to reduce our cost structure and realign it to the changing nature of our business. As part of our efforts to reduce costs, our restructuring actions may also include the off-shoring and/or outsourcing of certain operations, services and other functions, as well as reducing our real estate footprint. During the nine months ended September 30, 2023, we recorded Restructuring and related costs, net of $35, which includes $5 of net restructuring charges, $20 of asset impairment charges and $10 of related costs.

During the nine months ended September 30, 2023, we recorded net restructuring charges of $5, which included $13 of severance costs related to headcount reductions of approximately 180 employees worldwide. These costs were partially offset by $8 of net reversals, which primarily reflect changes in estimated reserves from prior period initiatives.

Charges were primarily related to the Print and Other segment as amounts related to the FITTLE segment were immaterial for all periods presented.


	Severance and Related Costs		Other Contractual Termination Costs(2)		Total
Balance at December 31, 2022	$	39	$	4	$	43
Provision	5		—		5
Reversals	(4)		—		(4)
Net current period charges(1)	1		—		1
Charges against reserve and currency	(6)		—		(6)
Balance at March 31, 2023	34		4		38
Provision	3		—		3
Reversals	(2)		—		(2)
Net current period charges(1)	1		—		1
Charges against reserve and currency	(7)		(1)		(8)
Balance at June 30, 2023	28		3		31
Provision	5		—		5
Reversals	(1)		(1)		(2)
Net current period charges(1)	4		(1)		3
Charges against reserve and currency	(10)		—		(10)
Balance at September 30, 2023	$	22	$	2	$	24

(1)Represents net amount recognized within the Condensed Consolidated Statements of Income (Loss) for the period shown for restructuring charges. Reversals of prior charges primarily include net changes in estimated reserves from prior period initiatives.

(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs.


	Nine Months Ended September 30,
		2023		2022
Restructuring cash payments		$	(23)	$	(38)

Effects of foreign currency and other non-cash items		(1)		(2)
Charges against reserve and currency		$	(24)	$	(40)

Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. Third quarter 2023 activity includes the impairment associated with the Company's sale of its Russian Subsidiary, which was completed in October 2023. The impairment reflects the held-for-sale write down of Russia's net assets to their fair value. The nine months ended September 30, 2023 activity also includes the second quarter 2023 impairment associated with the Company's sale of its Xerox Research Center of Canada (XRCC), the Canadian research division of Xerox, to Myant Capital Partners, which was completed in July 2023.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Lease right of use assets(1)	$	—	$	1	$	—	$	2
Owned assets(1)	11		9		23		10
Asset impairments	11		10		23		12
Gain on sales of owned assets(2)	—		(2)		—		(22)
Adjustments/Reversals	(3)		—		(3)		—
Net asset impairment charge	$	8	$	8	$	20	$	(10)

_____________

(1)Includes charges associated with the exit and abandonment of leased and owned facilities, net of any potential sublease income and recoveries as well as impairments on the sales of certain asset groups.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Retention related severance/bonuses(1)	$	(1)	$	(1)	$	—	$	(3)
Contractual severance costs	—		1		—		—
Consulting and other costs(2)	—		—		10		—
Total	$	(1)	$	—	$	10	$	(3)

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum retention period before termination. The credit for the nine months ended September 30, 2022 reflects a change in estimate.

Cash paid for restructuring related costs were $12 and $4 for the nine months ended September 30, 2023 and 2022, respectively. The restructuring related costs reserve was $9 and $12 at September 30, 2023 and December 31, 2022, respectively. The balance at September 30, 2023 is expected to be paid over the next twelve months.