Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:

	Year Ended December 31,
	2023		2022		2021
Primary geographical markets(1)
United States	$	3,826	$	4,014	$	3,982
Europe	1,951		1,935		2,023
Canada	554		545		398
Other	555		613		635
Total Revenues	$	6,886	$	7,107	$	7,038
Major product and services lines
Equipment	$	1,655	$	1,624	$	1,581
Supplies, paper and other sales	1,065		1,176		1,001
Maintenance agreements(2)	1,631		1,730		1,787
Service arrangements(3)	1,984		1,953		1,991
Rental and other	360		417		457
Financing	191		207		221
Total Revenues	$	6,886	$	7,107	$	7,038
Sales channels:
Direct equipment lease(4)	$	920	$	708	$	664
Distributors & resellers(5)	1,044		1,222		1,130
Customer direct	756		870		788
Total Sales	$	2,720	$	2,800	$	2,582

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(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.

(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners.

(3)Primarily includes revenues from our Print outsourcing arrangements including revenues from embedded operating leases in those arrangements, which were not significant.

(4)Primarily reflects sales through bundled lease arrangements.

(5)Primarily reflects sales through our two-tier distribution channels.

Contract assets and liabilities: We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time. Our contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for maintenance and other services to be performed and were approximately $132 and $131 at December 31, 2023 and 2022, respectively. The majority of the balance at December 31, 2023 will be amortized to revenue over approximately the next 30 months.

Contract Costs:

We incur the following contract costs as part of our revenue arrangements:

•Incremental direct costs of obtaining a contract, which are primarily sales commissions paid to salespeople and agents in connection with the placement of equipment with associated post sale services arrangements. These costs are deferred and amortized to Selling Expenses on a straight-line basis over the estimated contract term, which is currently estimated to be approximately four years. We pay commensurate sales commissions upon customer renewals; therefore, our amortization period is aligned to our initial contract term.

•Contract fulfillment costs, which are costs incurred for resources and assets that will be used to satisfy our future performance obligations included in our service arrangements. These costs are amortized over the contractual service period of the arrangement to cost of services.

•Contract inducements, which are capitalized and amortized as a reduction of revenue over the term of the contract.

Changes in contract costs, net are as follows:

	2023		2022		2021
Balance at January 1st,	135		147		158
Customer contract costs deferred	70		65		66
Amortization of customer contract costs	(69)		(73)		(79)
Other(1)	—		(4)		2
Balance at December 31st,	$	136	$	135	$	147

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(1)Includes currency.

Equipment and software used in the fulfillment of service arrangements, and where the Company retains control, are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.