v3.26.1
Segment and Geographic Area Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Area Reporting Segment and Geographic Area Reporting
Our reportable segments are aligned with how we manage the business and view the markets we serve. During the first quarter of 2025, the Company updated its determination of reportable segments to align with a change in how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth and Reinvention strategies. As such, it was determined that there are two reportable segments - Print and Other and IT Solutions. Prior to this change, the Company had determined that there were two reportable segments - Print and Other and Xerox Financial Solutions (XFS). As a result of this change, prior period reportable segment results and related disclosures have been conformed to reflect the Company’s current reportable segments.
During 2024, the Company acquired ITsavvy Acquisition Company, Inc. (ITsavvy), a technology infrastructure solutions provider. As a result of this acquisition, during the first quarter of 2025, we reassessed our operating and reportable segments and determined that, based on the information provided to our CODM, as well as the CEO's management and assessment of the Company's operations, we had two operating and reportable segments - Print and Other and IT Solutions. We also determined that there were no other businesses that met the requirements to be considered separate operating segments, including our former operating/reporting segment, XFS, whose results are now included in the Print and Other operating/reporting segment.
Our Print and Other segment includes the design, development and sale of document management systems, supplies and services, as well as associated financing and technology-related offerings, digital and print-related software products and 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 the Lexmark Acquisition. In addition, the segment includes Xerox Financial Services, a global financing solutions provider, primarily enabling the sale of our equipment and services (previously reported XFS segment), which includes commissions and other payments for the exclusive right to provide lease financing for Xerox products. Refer to Note 6 - Acquisition and Divestitures, for additional information regarding the Lexmark Acquisition.
The 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 team environments as well as products in the Light Production product groups serving centralized print centers, print for pay and low 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.
Our IT Solutions segment provides clients of all sizes integrated IT infrastructure solutions, delivering business outcomes through its suite of Device Lifecycle Solutions, and Managed IT Services. The IT Solutions business leverages its professional services and engineering capabilities, along with an extensive partner ecosystem to design, develop and deliver comprehensive Network and Security Solutions, and Infrastructure and Cloud Solutions. This segment provides services to clients in the U.S., Canada, the U.K., and Western Europe.
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 expenses for shared selling, administrative and general services. Certain administrative and general expenses, which primarily relate to corporate functions, as well as Xerox Holdings' investment in Myriad, are not allocated to either of our operating/reportable segments. Accordingly, they are excluded from segment expenses and segment profit, and as such, the financial results for the segments may not be indicative of the results the businesses would have 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, significant segment expenses, and segment profit. A segment expense is considered significant when it is material to the segment, is included in the measure of segment profit, and is included in information that is regularly provided to the CODM. The CODM uses segment revenues, significant segment expenses, and segment profit to evaluate the performance of, and to allocate resources to each
segment. The CODM does not evaluate segment performance using discrete asset information, as a significant portion of the assets is managed at the total company level. Segment profit is the only measure of profitability that is used by the CODM to evaluate the performance of, and to allocate resources to each segment.
Segment revenue, significant segment expenses, segment profit, and other selected financial information for our reportable segments was as follows:
Year Ended December 31, 2025
Print and OtherIT Solutions
Corporate Other(1)
Total
External revenue$6,272 $750 $— $7,022 
Intersegment net revenue(2)
— 11 — 11 
Total Segment net revenue$6,272 $761 $— $7,033 
Reconciliation to Segment Profit
Cost of sales(3)(4)
$1,820 $421 $— $2,241 
Cost of services, maintenance, rentals and other(4)(5)(6)
2,540 189 — 2,729 
Research, development and engineering expenses228 — — 228 
Selling, administrative and general expenses(7)(8)
1,402 101 73 1,576 
Intersegment expense(9)
3 8 — $11 
Segment profit$279 $42 $(73)$248 
Interest income(10)
$126 $— $— $126 
Interest expense(4)
86 — — 86 
Depreciation and amortization246 2 — 248 
Capital expenditures90 1 — 91 
Total Assets9,132 691 — 9,823 
Year Ended December 31, 2024
Print and OtherIT Solutions
Corporate Other(1)
Total
External revenue$5,864 $357 $— $6,221 
Intersegment net revenue(2)
— 1 — 1 
Total Segment net revenue$5,864 $358 $— $6,222 
Reconciliation to Segment Profit
Cost of sales(3)(4)
$1,357 $197 $— $1,554 
Cost of services, maintenance, rentals and other(4)(5)(6)
2,553 103 — 2,656 
Research, development and engineering expenses191 — — 191 
Selling, administrative and general expenses(7)(8)
1,366 58 94 1,518 
Intersegment expense(9)
1 — — 1 
Segment profit$396 $— $(94)$302 
Interest income(10)
$151 $— $— $151 
Interest expense(4)
106 — — 106 
Depreciation and amortization201 — — 201 
Capital expenditures44 — — 44 
Total Assets$7,649 $716 $— $8,365 
Year Ended December 31, 2023
Print and OtherIT Solutions
Corporate Other(1)
Total
External net revenue$6,523 $363 $— $6,886 
Intersegment revenue— — — — 
Total Segment net revenue$6,523 $363 $— $6,886 
Reconciliation to Segment Profit
Cost of sales$1,556 $222 $— $1,778 
Cost of services, maintenance, rentals and other2,706 88 — 2,794 
Research, development and engineering expenses229 — — 229 
Selling, administrative and general expenses(7)
1,547 48 101 1,696 
Intersegment expense— — — — 
Segment profit$485 $5 $(101)$389 
Interest income(10)
$191 $— $— $191 
Interest expense(6)
130 — — 130 
Depreciation and amortization208 — — 208 
Capital expenditures37 — — 37 
Total Assets$9,782 $226 $— $10,008 
_____________
(1)Certain administrative and general expenses, which primarily relate to corporate functions, are not allocated to either of our operating/reportable segments.
(2)Intersegment revenue is primarily revenue from IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment.
(3)Excludes the impact of a charge made for inventory purchase accounting adjustments related to the Lexmark Acquisition of $102 year ended December 31, 2025. Refer to Note 6 - Acquisition and Divestitures for additional information regarding the Lexmark Acquisition.
(4)As a result of the exit of certain production print manufacturing operations, Cost of sales and Cost of services, maintenance, rentals and other for the Print and Other Segment excludes inventory-related charges of $24 and $8 for the years ended December 31, 2025 and 2024, respectively, as well as the cancellation of related purchase contracts $— and $43 for the years ended December 31, 2025 and 2024, respectively.
(5)Excludes the impact of fixed asset purchase accounting adjustments related to the Lexmark Acquisition of $29 for year ended December 31, 2025. Refer to Note 6 - Acquisition and Divestitures for additional information regarding the Lexmark Acquisition
(6)Includes equipment financing interest expense associated with Company's financing debt, which is fully allocated to the Print and Other segment in support of its Finance assets. No interest expense is allocated to the IT Solutions segment, as the segment has no financing debt.
(7)Includes bad debt expense for the Print and Other segment of $39, $42, $28 for the three years ended December 31, 2025, 2024 and 2023, respectively. Bad debt expense for the IT Solutions segment was nil for the three years ended December 31, 2025, 2024 and 2023, respectively.
(8)The Print and Other segment excludes Reinvention Costs of $17 and $12, and Transaction and related costs, net of $33 and $5, for the years ended December 31, 2025 and 2024, respectively. Additionally, the Print and Other segment excludes $25 for the year ended December 31, 2025 related to the settlement of pre-existing employment agreements as a result of the Lexmark Acquisition. The IT Solutions segment excludes Transaction and related costs, net of $1 and $2, for the years ended December 31, 2025 and 2024, respectively. Refer to Note 6 - Acquisition and Divestitures for additional information regarding the Lexmark Acquisition and ITsavvy.
(9)Intersegment expense primarily consists of costs related to the sale of IT hardware, software solutions and services by the IT Solutions segment, to the Print and Other segment.
(10)Reflects financing income, which is included in Services, maintenance, rentals and other in the Consolidated Statements of (Loss) Income. No interest income is allocated to the IT Solutions segment, as the segment has no finance assets.
Selected financial information for our reportable segments was as follows:
Year Ended December 31,
202520242023
Pre-tax (Loss)
Total Segment profit$248 $302 $389 
Goodwill impairment(1)
— (1,058)— 
Restructuring and related costs, net(66)(112)(167)
Amortization of intangible assets(83)(73)(43)
Reinvention-related costs(17)(12)— 
Purchase Accounting Adjustment - Fixed Assets(29)— — 
Purchase Accounting Adjustment - Inventory(102)— — 
Settlement of pre-existing employment agreements(25)— — 
Transaction-related costs(34)(7)— 
Inventory-related impact - exit of certain production print manufacturing operations(2)
(24)(51)— 
Divestitures4 (47)— 
PARC Donation— — (132)
Other expenses, net(360)(158)(75)
Total Pre-tax loss$(488)$(1,216)$(28)
Depreciation and Amortization
Total reported segments$248 $201 $208 
Amortization of intangible assets83 73 43 
Total Depreciation and amortization$331 $274 $251 
Interest Expense
Total reported segments$86 $106 $130 
Corporate248 119 68 
Total Interest expense$334 $225 $198 
Interest Income
Total reported segments$126 $151 $191 
Corporate14 14 16 
Total Interest income$140 $165 $207 
__________
(1)For the year ended December 31, 2024 we recognized an after-tax non-cash impairment charge of $1,015 ($1,058 pre-tax) related to our Print and Other reporting unit.
(2)Includes certain charges resulting from the exit of certain production print manufacturing operations, including inventory-related charges of approximately $24 and $8 for the years ended December 31, 2025 and 2024 respectively, as well as charges for the cancellation of related purchase contracts of $— and $43 for the years ended December 31, 2025 and 2024, respectively.
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,
 20252024202320252024
United States$3,985 $3,437 $3,826 $761 $488 
Europe1,952 1,843 1,951 178 194 
Canada464 487 554 49 39 
Latin America274 199 246 106 10 
Asia Pacific154 54 55 51 2 
Other areas193 201 254 2 2 
Total$7,022 $6,221 $6,886 $1,147 $735 
_____________
(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.