Supplementary Financial Information

12 Months Ended

Dec. 31, 2023

Supplemental Financial Information [Abstract]

Supplementary Financial Information

Supplementary Financial Information

The components of Other assets and liabilities are as follows:

	December 31,
	2023		2022
Other Current Assets
Income taxes receivable	$	13	$	27
Royalties, license fees and software maintenance	19		23
Restricted cash	70		55
Prepaid expenses	29		32
Advances and deposits	33		29
Other	70		88
Total Other Current Assets	$	234	$	254
Other Long-term Assets
Income taxes receivable	$	22	$	1
Prepaid pension costs	423		667
Internal use software, net	68		95
Restricted cash	28		39
Customer contract costs, net	136		135
Operating lease right-of-use assets	172		215
Deferred compensation plan investments	14		15
Investments in affiliates, at equity(1)	40		38
Investments at cost - Xerox Holdings	26		21
Other	105		97
Total Other Long-term Assets(2)	$	1,034	$	1,323
Accrued Expenses and Other Current Liabilities
Income taxes payable	$	39	$	16
Other taxes payable	60		60
Operating lease obligations	41		68
Interest payable	37		43
Restructuring reserves	119		39
Dividends payable - Xerox Holdings(3)	42		47
Distributor and reseller rebates/commissions	120		145
Unearned income and other revenue deferrals	147		154
Administration and overhead	61		72
Other	196		237
Total Accrued Expenses and Other Current Liabilities(4)	$	862	$	881
Other Long-term Liabilities
Deferred taxes	$	95	$	95
Income taxes payable	14		41
Operating lease obligations	141		161
Environmental reserves	11		11
Restructuring reserves	10		4
Other	89		99
Total Other Long-term Liabilities	$	360	$	411

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(1)Investments in affiliates, at equity largely consists of several minor investments in entities in the Middle East region. Xerox's ownership interest in investments in corporate joint ventures and other companies is generally between 20% and 50%.

(2)Xerox's balances of $1,008 and $1,302 at December 31, 2023 and 2022, respectively, excludes Investments at cost.

(3)Represents dividends payable by Xerox Holdings Corporation on Common and Preferred Stock.

(4)Xerox's balances of $820 and $834 at December 31, 2023 and 2022, respectively, excludes dividends payable of $42 and $47, respectively.

Cash, Cash Equivalents and Restricted Cash

Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation as well as cash collections on finance receivables that were pledged for secured borrowings. As more fully discussed in Note 20 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. Restricted cash amounts are classified in our Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Cash, cash equivalents and restricted cash amounts are as follows:

	December 31,
	2023		2022
Cash and cash equivalents	$	519	$	1,045
Restricted cash
Litigation deposits in Brazil	27		39
Escrow and cash collections related to secured borrowings and receivable sales(1)	49		54
Other restricted cash	22		1
Total Restricted cash	98		94
Cash, cash equivalents and restricted cash	$	617	$	1,139

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(1)Includes collections on finance receivables pledged for secured borrowings or sold that will be remitted in the following month.

Restricted cash is reported in the Consolidated Balance Sheets as follows:

	December 31,
	2023		2022
Other current assets	$	70	$	55
Other long-term assets	28		39
Total Restricted cash	$	98	$	94

Summarized Cash Flow Information

Summarized cash flow information is as follows:

Source/(Use)	Location in Statement of Cash Flows	Year Ended December 31,
		2023		2022		2021
Provision for receivables(1)	Operating	$	36	$	36	$	12
Provision for inventory	Operating	18		29		34
Depreciation of buildings and equipment	Operating	60		68		76
Depreciation and obsolescence of equipment on operating leases	Operating	111		115		155
Amortization of internal use software	Operating	37		45		41
Amortization of acquired intangible assets	Operating	43		42		55
Amortization of patents(2)	Operating	9		10		11
Amortization of customer contract costs(3)	Operating	69		73		79
Cost of additions to land, buildings and equipment	Investing	(29)		(36)		(29)
Cost of additions to internal use software	Investing	(8)		(21)		(39)
Payments to acquire noncontrolling interests - Xerox Holdings	Investing	(5)		(13)		(8)
Common stock dividends - Xerox Holdings	Financing	(151)		(160)		(192)
Preferred stock dividends - Xerox Holdings	Financing	(14)		(14)		(14)
Payments to noncontrolling interests	Financing	(2)		(1)		(1)
Investment from noncontrolling interests	Financing	—		6		15
Repurchases related to stock-based compensation - Xerox Holdings	Financing	(8)		(12)		(18)

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(1)Provision for receivables includes adjustments for customer accommodations and contract terminations of $8, $(7), and $5 for the three years ended December 31, 2023, 2022 and 2021, respectively.

(2)Amortization of patents is reported in Decrease in other current and long-term assets on the Consolidated Statements of Cash Flows.

(3)Amortization of customer contract costs is reported in Decrease in other current and long-term assets on the Consolidated Statements of Cash Flows. Refer to Note 3 - Revenue - Contract Costs for additional information.

Supplier Finance Programs

The Company has a program through a financial institution that enables vendors and suppliers, at their option, to receive early payment for their invoices. The program operates in a similar manner to a purchasing card program, however with this program the Company directly receives invoices associated with those vendors and suppliers participating in the program. The Company confirms and validates those invoices and the amounts due before submitting the invoices to the financial institution for early payment at a discounted amount. The financial institution subsequently invoices the Company for the stated or full amount of the invoices paid early and we are required to make payment within 45 days of the statement date. The overall impact of the program generally results in the Company paying its supplier and vendor invoices consistent with their original terms. This program is generally available to all non-inventory vendors and suppliers. Spending associated with this program during 2023 was approximately $125. All outstanding amounts related to the program are recorded within Accounts payable in our Consolidated Balance Sheets, and the associated payments are included in operating activities within our Consolidated Statements of Cash Flows. The amounts due to vendors and suppliers participating in this program and included in Accounts payable were approximately $40 at both December 31, 2023 and 2022, respectively.