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Shareholder's Equity of Xerox
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity Note [Abstract]  
Shareholder's Equity of Xerox Shareholders’ Equity of Xerox Holdings
(shares in thousands)
The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.
Common
Stock(1)
Additional Paid-in CapitalTreasury StockRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon-controlling Interests
Total
Equity
Balance at June 30, 2023$157 $1,607 $— $5,057 $(3,437)$3,384 $8 $3,392 
Comprehensive income (loss), net— — — 49 (67)(18)1 (17)
Cash dividends declared - common(3)
— — — (32)— (32)— (32)
Cash dividends declared - preferred(4)
— — — (4)— (4)— (4)
Stock option and incentive plans, net— 12 — — — 12 — 12 
Payments to acquire treasury stock, including fees— — (553)— — (553)— (553)
Balance at September 30, 2023$157 $1,619 $(553)$5,070 $(3,504)$2,789 $9 $2,798 
Common
Stock(1)
Additional Paid-in CapitalTreasury StockRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon- controlling Interests
Total
Equity
Balance at June 30, 2022$155 $1,564 $— $5,484 $(3,330)$3,873 $9 $3,882 
Comprehensive (loss) income, net— — — (383)(217)(600)1 (599)
Cash dividends declared - common(3)
— — — (40)— (40)— (40)
Cash dividends declared - preferred(4)
— — — (4)— (4)— (4)
Stock option and incentive plans, net1 13 — — — 14 — 14 
Investment from noncontrolling interests— — — — — — 1 1 
Balance at September 30, 2022$156 $1,577 $— $5,057 $(3,547)$3,243 $11 $3,254 
Common
Stock(1)
Additional
Paid-in
Capital
Treasury Stock
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-controlling
Interests
Total
Equity
Balance at December 31, 2022$156 $1,588 $— $5,136 $(3,537)$3,343 $10 $3,353 
Comprehensive income, net— — — 59 33 92 1 93 
Cash dividends declared - common(3)
— — — (114)— (114)— (114)
Cash dividends declared - preferred(4)
— — — (11)— (11)— (11)
Stock option and incentive plans, net1 31 — — — 32 — 32 
Payments to acquire treasury stock, including fees— — (553)— — (553)— (553)
Distributions to noncontrolling interests— — — — — — (2)(2)
Balance at September 30, 2023
$157 $1,619 $(553)$5,070 $(3,504)$2,789 $9 $2,798 
Common
Stock(1)
Additional
Paid-in
Capital
Treasury Stock
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-
controlling
Interests
Total
Equity
Balance at December 31, 2021$168 $1,802 $(177)$5,631 $(2,988)$4,436 $7 $4,443 
Comprehensive loss, net— — — (443)(559)(1,002)(1)(1,003)
Cash dividends declared - common(3)
— — — (120)— (120)— (120)
Cash dividends declared - preferred(4)
— — — (11)— (11)— (11)
Stock option and incentive plans, net2 51 — — — 53 — 53 
Payments to acquire treasury stock, including fees— — (113)— — (113)— (113)
Cancellation of treasury stock(14)(276)290 — — — — — 
Investment from noncontrolling interests— — — — — — 6 6 
Distributions to noncontrolling interests— — — — — — (1)(1)
Balance at September 30, 2022
$156 $1,577 $— $5,057 $(3,547)$3,243 $11 $3,254 
_____________
(1)Common Stock has a par value of $1 per share.
(2)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.
(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2023 and 2022 were $0.25 per share, respectively, and $0.75 per share, respectively.
(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2023 and 2022 were $20.00 per share, respectively, and $60.00 per share, respectively.
Common Stock and Treasury Stock
The following is a summary of the changes in Common and Treasury stock shares:
Common Stock SharesTreasury Stock Shares
Balance at December 31, 2022155,781 — 
Stock based compensation plans, net1,177 — 
Balance at March 31, 2023156,958 — 
Stock based compensation plans, net147 — 
Balance at June 30, 2023157,105 — 
Stock based compensation plans, net46 — 
Acquisition of Treasury stock— 34,245 
Balance at September 30, 2023157,151 34,245 
Icahn Share Repurchase
On September 28, 2023, Xerox Holdings Corporation entered into a share purchase agreement (the Purchase Agreement) with Carl C. Icahn and certain of his affiliates (Icahn Parties) pursuant to which the Company agreed to purchase an aggregate of approximately 34 million shares of the Company’s Common Stock, at a price of $15.84 per share, the closing price on September 27, 2023, the last full trading day prior to the execution of the Purchase Agreement, for an aggregate purchase price of approximately $542. The purchase was completed and settled on September 28, 2023 and was funded by a $555 Credit Agreement with Jefferies Finance LLC (Jefferies Finance), as the Administrative Agent, Collateral Agent and Lender (Refer to Note 13 – Debt for additional information regarding the Loan Facility). Aggregate fees associated with the repurchase were approximately $11 ($2 paid through the third quarter 2023) and include the 1% excise tax on net share repurchases as required by the Inflation Reduction Act of 2022. The costs incurred are included as part of the cost of Treasury Stock.
Shareholder's Equity of Xerox
The shareholder's equity information presented below reflects the consolidated activity of Xerox.
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at June 30, 2023$3,708 $3,351 $(3,437)$3,622 $8 $3,630 
Comprehensive income (loss), net— 49 (67)(18)1 (17)
Dividends declared to parent— (34)— (34)— (34)
Transfers to parent(550)— — (550)— (550)
Balance at September 30, 2023$3,158 $3,366 $(3,504)$3,020 $9 $3,029 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's Equity
Non-
controlling
Interests
Total
Equity
Balance at June 30, 2022$3,630 $3,820 $(3,330)$4,120 $9 $4,129 
Comprehensive (loss) income, net— (383)(217)(600)1 (599)
Dividends declared to parent— (49)— (49)— (49)
Transfers from parent13 — — 13 — 13 
Investment from noncontrolling interests— — — — 1 1 
Balance at September 30, 2022
$3,643 $3,388 $(3,547)$3,484 $11 $3,495 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2022$3,693 $3,427 $(3,537)$3,583 $10 $3,593 
Comprehensive income, net— 59 33 92 1 93 
Dividends declared to parent— (120)— (120)— (120)
Transfers to parent(535)— — (535)— (535)
Distributions to noncontrolling interests— — — — (2)(2)
Balance at September 30, 2023
$3,158 $3,366 $(3,504)$3,020 $9 $3,029 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2021$3,202 $4,476 $(2,988)$4,690 $7 $4,697 
Comprehensive loss, net— (443)(559)(1,002)(1)(1,003)
Dividends declared to parent— (645)— (645)— (645)
Transfers from parent441 — — 441 — 441 
Investment from noncontrolling interests— — — — 6 6 
Distributions to noncontrolling interests— — — — (1)(1)
Balance at September 30, 2022
$3,643 $3,388 $(3,547)$3,484 $11 $3,495 
_____________
(1)Refer to Note 19 - Other Comprehensive (Loss) Income for the components of AOCL.