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Segment and Geographic Area Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment and Geographic Area Reporting Segment and Geographic Area Reporting
Our reportable segments – Print and Other, and FITTLE – are aligned to how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth strategies and are consistent with how we manage the business and view the markets we serve.
Segment Reporting Change
During the second quarter 2023, as a result of the strategic shift in the Company’s approach to funding FITTLE’s new originations through funding agreements that involve the sale of lease receivables, the measures for FITTLE’s segment revenues and profits used by our CODM were recast as follows to correspond with this change in strategy:
•The management and oversight of the equipment on operating leases portion of our financing business was transferred from the FITTLE segment to the marketing and sales groups in the Print and Other segment since the funding agreements currently exclude the sale of operating lease arrangements.
•The allocation of shared expenses as well as commissions and other payments made by the FITTLE segment to the Print and Other segment were recast to better reflect the operations of FITTLE in line with the change in strategic direction.
The following provides segment revenues and profit for 2022 and 2021, recast to conform to our new segment measurements:
Segment RevenuesSegment Profit
2022202120222021
As Reported:
Print and Other$6,667 $6,548 $238 $293 
FITTLE610 695 37 82 
Intersegment revenue(1)
(170)(205)— — 
Total External Revenue$7,107 $7,038 $275 $375 
Change:
Print and Other$137 $181 $20 $18 
FITTLE(217)(294)(20)(18)
Intersegment revenue(1)
80 113 — — 
Total External Revenue$— $— $— $— 
Recast:
Print and Other$6,804 $6,729 $258 $311 
FITTLE393 401 17 64 
Intersegment revenue(1)
(90)(92)— — 
Total External Revenue$7,107 $7,038 $275 $375 
_____________
(1)Intersegment revenue is primarily commissions and other payments made by the FITTLE Segment to the Print and Other Segment for the lease of Xerox equipment placements.
Our Print and Other segment includes the sale of document systems, supplies and technical services and managed services. The segment also includes the delivery of managed services that involve a continuum of solutions and services that help our customers optimize their print and communications infrastructure, apply automation and simplification to maximize productivity, and ensure the highest levels of security. This segment also includes IT services and software. Our product groupings range from:
•“Entry”, which include A4 devices and desktop printers and multifunction devices that primarily serve small and medium workgroups/work teams.
•“Mid-Range”, which include A3 devices that generally serve large workgroup/work teams environments as well as products in the Light Production product groups serving centralized print centers, print for pay and lower volume production print establishments.
•“High-End”, which include production printing and publishing systems that generally serve the graphic communications marketplace and print centers in large enterprises.
Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers. Segment revenues also include commissions and other payments from the FITTLE segment for the exclusive right to provide lease financing for Xerox products. These revenues are reported as part of Intersegment Revenues, which are eliminated in consolidated revenues.
The FITTLE segment provides leasing solutions and currently offers leasing for direct channel customer purchases of Xerox solutions through bundled lease agreements and lease financing to end-user customers who purchase Xerox solutions through our indirect channels. Segment revenues primarily include financing income on sales-type leases (including month-to-month extensions) and leasing fees. Segment revenues also include gains/losses from the sale of finance receivables including commissions, fees on the sales of underlying equipment residuals and servicing fees.
In December 2022, the Company entered into a finance receivables funding agreement with an affiliate of HPS Investment Partners (HPS) pursuant to which the Company agreed to offer for sale, and HPS agreed to purchase, certain eligible pools of finance receivables on a monthly basis. During the second quarter 2023, the finance receivables funding agreement with HPS was amended to expand the pools of finance receivables eligible for sale and to include the sale of the underlying leased equipment to HPS. Refer to Note 8 - Finance Receivables, Net for additional information on the sale of receivables.
In the third quarter 2023, the Company entered into an agreement with PEAC Solutions (a subsidiary of HPS) that named PEAC as the provider of certain leasing and financial services programs for Xerox and non-Xerox equipment sold through our U.S. network of independent dealers and resellers. In the fourth quarter 2023, our partnership with PEAC Solutions was further expanded to include the transition of some FITTLE U.S. employees in risk, IT, and operations to PEAC Solutions. Upon completion of this transition, PEAC Solutions will become the preferred financing partner, primary funder, and service provider for XBS leases in the U.S.
Segment Policy
We derive the results of our business segments directly from our internal management reporting system. The accounting policies that the Company uses to derive its segment results are substantially the same as those used by the Company in preparing its consolidated financial statements. The segment results include a significant level of management estimates regarding the allocation of revenues such as finance income in bundled lease arrangements and other leasing revenues and operating lease revenues embedded in our managed services contracts as well as the allocation of expenses for shared selling and administrative services. Accordingly, the financial results for the segments may not be indicative of the results the businesses would have as on a standalone basis or what might be presented for the businesses in stand-alone financial statements. The CODM measures the performance of each segment based on several metrics, including segment revenues and profit. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each segment. The FITTLE segment also includes interest expense associated with allocated debt of the Company in support of its Finance assets, while no interest expense is allocated to the Print and Other segment.
Selected financial information for our reportable segments was as follows:
Year Ended December 31,
2023
2022(1)
2021(1)
Print and OtherFITTLETotalPrint and OtherFITTLETotalPrint and OtherFITTLETotal
External revenue$6,485 $401 $6,886 $6,714 $393 $7,107 $6,637 $401 $7,038 
Intersegment revenue(2)
86 — 86 90 — 90 92 — 92 
Total Segment revenue$6,571 $401 $6,972 $6,804 $393 $7,197 $6,729 $401 $7,130 
Segment profit$360 $29 $389 $258 $17 $275 $311 $64 $375 
Segment margin(3)
5.6 %7.2 %5.6 %3.8 %4.3 %3.9 %4.7 %16.0 %5.3 %
Interest income$— $191 $191 $— $207 $207 $— $221 $221 
Interest expense— 130 130 — 108 108 — 111 111 
Depreciation and amortization208 — 208 228 — 228 272 — 272 
Capital expenditures(4)
37 — 37 57 — 57 68 — 68 
Total Assets7,301 2,707 10,008 8,230 3,313 11,543 9,9493,27413,223
_____________
(1)Amounts for 2022 and 2021 have been recast to conform to the current year's reporting presentation. See the Segment Reporting Change section above.
(2)Intersegment revenue is primarily commissions and other payments made by the FITTLE Segment to the Print and Other Segment for the lease of Xerox equipment placements.
(3)Segment margin based on External revenue only.
(4)Capital expenditures are allocated fully to the Print and Other segment since they are primarily managed and controlled through that segment, together, with related long-lived assets.

Selected financial information for our reportable segments was as follows:

Year Ended December 31,
202320222021
Pre-tax (Loss)
Total Segment profit$389 $275 $375 
Goodwill impairment— (412)(781)
Restructuring and related costs, net(167)(65)(38)
Amortization of intangible assets(43)(42)(55)
PARC Donation(132)— — 
Accelerated share vesting— (21)— 
Other expenses, net(75)(60)27 
Total Pre-tax (loss)$(28)$(325)$(472)
Depreciation and Amortization
Total reported segments$208 $228 $272 
Amortization of intangible assets43 42 55 
Total Depreciation and amortization$251 $270 $327 
Interest Expense
Total reported segments$130 $108 $111 
Corporate68 91 96 
Total Interest expense$198 $199 $207 
Interest Income
Total reported segments$191 $207 $221 
Corporate16 11 4 
Total Interest income$207 $218 $225 
Geographic Area Data
Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows:
 Revenues
Long-Lived Assets (1)
Year Ended December 31,As of December 31,
 20232022202120232022
United States$3,826 $4,014 $3,982 $467 $537 
Europe1,951 1,935 2,023 241 249 
Canada554 545 398 42 54 
Other areas555 613 635 21 25 
Total$6,886 $7,107 $7,038 $771 $865 
_____________
(1)Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Equipment on operating leases, net, (iii) Leased right-of-use (ROU) assets, net, (iv) Internal use software, net, and v) Capitalized product software, net.