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Restructuring Programs
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Programs Restructuring Programs
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 offshoring and/or outsourcing of certain operations, services and other functions, as well as reducing our real estate footprint.
Restructuring and related costs, net reflect the following components for the three years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
202320222021
Restructuring charges, net$114 $68 $18 
Asset impairment charges, net32 (6)9 
Related costs, net21 3 11 
Total Restructuring and related costs, net$167 $65 $38 
Restructuring charges, net primarily includes employee severance costs and other contractual termination costs that may result from restructuring actions and initiatives. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan (on-going benefit arrangements), we recognize employee severance and associated costs when they are both probable and reasonably estimable and is the primary accounting applied for most of our Restructuring actions. Severance payments made under a one-time benefit arrangement are recorded upon communication to the affected employees. In the event employees are required to perform future service beyond their minimum retention period in a one-time benefit arrangement, we record severance charges ratably over the remaining service period of those employees as restructuring related costs. Contractual termination costs, including facility exit costs, are generally recognized when it has been determined that a liability has been incurred. Asset impairment charges, net primarily include impairments that may result from employee reductions, migration of facilities from higher-cost to lower-cost countries, and the consolidation of facilities within countries and is net of any gains we may realize on the disposal
of those assets. Restructuring activities may also include the disposal or abandonment of assets, including leased right-of-use assets, that require an acceleration of depreciation or an impairment charge reflecting the excess of an asset's book value over fair value or other recoveries. Restructuring related costs also include severance costs paid in connection with contractual outsourcing arrangements as well as professional support services associated with our business transformation initiatives.
The recognition of restructuring and related costs requires that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with planned initiatives. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure they are properly stated, and the utilization of the reserves are for their intended purpose in accordance with developed exit plans.
Restructuring Charges, Net
Restructuring charges, net primarily relate to the Print and Other segment as amounts related to the FITTLE segment were immaterial for all periods presented. A summary of our restructuring program activity for the three years ended December 31, 2023, 2022 and 2021 is as follows:
Severance 
Costs
Other Contractual
Termination Costs(2)
Total
Balance at December 31, 2020$78 $4 $82 
Restructuring provision30 3 33 
Reversals of prior charges(13)(2)(15)
Net Current Period Charges(1)
17 1 18 
Charges against reserve and currency(70)(3)(73)
Balance at December 31, 2021$25 $2 $27 
Restructuring provision74 3 77 
Reversals of prior charges(8)(1)(9)
Net Current Period Charges(1)
66 2 68 
Charges against reserve and currency(52)— (52)
Balance at December 31, 2022$39 $4 $43 
Restructuring provision125 — 125 
Reversals of prior charges(11)— (11)
Net Current Period Charges(1)
114 — 114 
Charges against reserve and currency(24)(4)(28)
Balance at December 31, 2023$129 $— $129 
_____________
(1)Represents net amount recognized within the Consolidated Statements of Income (Loss) for the years shown for restructuring. Reversals of prior charges primarily include net changes in estimated reserves from prior period initiatives.
(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs.
The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:
 Year Ended December 31,
 202320222021
Restructuring Cash Payments$(27)$(52)$(72)
Effects of foreign currency and other non-cash items(1)— (1)
Charges against reserve and currency$(28)$(52)$(73)
Asset Impairment Charges, Net
Charges associated with asset impairments represent the write-down of the related assets to their new cost basis. Impairments are net of any potential sublease income or other recovery amounts. 2023 activity includes the impairment associated with the Company's sale of its Russian Subsidiary, which was completed in October 2023 and the 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. 2023 also includes impairments associated with strategic actions taken as a result of the Company's Project Reinvention, including the outsourcing of certain back-office functions and geographic simplification.
 Year Ended December 31,
 202320222021
Lease right of use assets(1)
$— $2 $3 
Owned assets(1)
36 15 12 
Asset impairments36 17 15 
Gain on sales of owned assets(2)
— (22)(4)
Adjustments/Reversals(4)(1)(2)
Net asset impairment charge (credit)$32 $(6)$9 
______________
(1)Primarily related to the exit and abandonment of leased and owned facilities, net of any potential sublease income and recoveries.
(2)Reflect gain on the sales of exited surplus facilities and land.
Related Costs
In connection with our restructuring programs, we also incurred certain related costs as follows:
Year Ended December 31,
202320222021
Retention-related severance/bonuses(1)
$(2)$— $6 
Contractual severance costs— 3 1 
Consulting and other costs(2)
23 — 4 
Total$21 $3 $11 
_____________
(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum retention period before termination.
(2)Represents professional support services associated with our business transformation initiatives.
For the years ended December 31, 2023, 2022 and 2021, cash payments for restructuring related costs were approximately $26, $9 and $13, respectively, while the reserve was $8 and $12 at December 31, 2023 and 2022, respectively. The balance at December 31, 2023 is expected to be paid over the next twelve months.