v3.26.1
Restructuring Programs
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Programs Restructuring Programs
In connection with our Reinvention we engage in restructuring actions in order to reduce our cost structure and realign it to the changing nature of our business. Additionally, as a result of the Lexmark Acquisition, we have begun efforts to integrate and consolidate certain operations of the legacy Xerox and Lexmark businesses. Our restructuring actions may also include the off-shoring and/or outsourcing of certain operations, services and other functions, exit from certain product lines and geographies, as well as reducing our real estate footprint. Refer to Note 6 - Acquisitions and Divestitures for additional information related to the Lexmark Acquisition.
Restructuring and related costs, net reflect the following components for the three years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
Restructuring charges, net$82 $62 $114 
Asset impairment charges, net(1)
(15)25 32 
Related costs, net(1)25 21 
Total Restructuring and related costs, net$66 $112 $167 
_____________
(1)Impairments are net of cash receipts.
Restructuring charges, net primarily include employee severance costs and other contractual termination costs resulting from restructuring actions and initiatives. In those geographies where the Company has a formal severance plan or a history of consistently providing severance benefits representing a substantive on-going benefit arrangement, employee severance and related costs are accounted for in accordance with ASC 712 and are recognized when the obligation is both probable and reasonably estimable. Severance payments provided under one-time benefit arrangements related to restructuring activities are accounted for in accordance with ASC 420 and are recognized when the Company has communicated the termination plan to the affected employees, the benefits are fixed or determinable, and the Company does not have the ability to withdraw the offer. To the extent employees are required to render future service beyond a minimum retention period, severance costs are recognized ratably over the future service period as restructuring related costs. Contractual termination costs, including facility exit
costs and other contract termination costs, are recognized when a liability has been incurred in accordance with applicable accounting guidance.
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, 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 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 the Company to 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 IT Solutions segment were immaterial for all periods presented. A summary of our restructuring program activity for the three years ended December 31, 2025, 2024 and 2023 is as follows:
Severance Cost Prior ActionsSeverance Costs ReinventionSeverance Costs Integration
Other Contractual
Termination Costs(2)
Total
Balance at December 31, 2022$39 $— $— $4 $43 
Restructuring provision21 104 — — 125 
Reversals of prior charges(11)— — — (11)
Net Current Period Charges(1)
10 104 — — 114 
Charges against reserve and currency(24)— — (4)(28)
Balance at December 31, 2023$25 $104 $— $— $129 
Restructuring provision2 66 — 4 72 
Reversals of prior charges(6)(3)— (1)(10)
Net Current Period Charges(1)
(4)63 — 3 62 
Charges against reserve and currency(16)(63)— (3)(82)
Balance at December 31, 2024$5 $104 $— $— $109 
Restructuring provision— 27 92 5 124 
Reversals of prior charges(3)(36)(3)— (42)
Net Current Period Charges(1)
(3)(9)89 5 82 
Charges against reserve and currency(1)(52)(12)— (65)
Balance at December 31, 2025$1 $43 $77 $5 $126 
_____________
(1)Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring charges. Reversals of prior charges primarily include net changes in estimated reserves from prior period initiatives accrued for in prior periods, including Reinvention and Integration.
(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs. We expect that the majority of these costs reserved for in 2025 will be paid upon the exercise of an early termination clause in 2027.
At December 31, 2025, we expect to pay $67 of the restructuring reserve over the next twelve months.
The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:
 Year Ended December 31,
 202520242023
Restructuring cash payments$(69)$(78)$(27)
Effects of foreign currency and other non-cash items4 (4)(1)
Charges against reserve and currency$(65)$(82)$(28)
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.
In connection with strategic actions taken as a result of the Company's Reinvention, 2025 activity included the impairment of an operating lease ROU asset, as well as the sales of facilities in the U.S. and Europe, while 2024 primarily related to impairments associated with geographic simplification.
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 Reinvention, including the outsourcing of certain back-office functions and geographic simplification.
 Year Ended December 31,
 202520242023
Lease right of use assets(1)
$4 $— $— 
Owned assets(2)
23 27 36 
Asset impairments27 27 36 
Adjustments/Reversals(3)
9 (2)(4)
Less: Proceeds from the sales of owned assets(4)
(51)— — 
Net asset impairment (credit) charge$(15)$25 $32 
______________
(1)Primarily related to the exit and abandonment of leased facilities, net of recoveries and any potential sublease income.
(2)Primarily related to the exit and abandonment of owned facilities.
(3)Reflects adjustment and reversals of impairments taken in prior periods.
(4)Reflects proceeds on the sales of exited surplus facilities and land.
Related Cost, Net
In connection with our restructuring programs, we also incurred certain related costs as follows:
Year Ended December 31,
202520242023
Retention-related severance/bonuses(1)
$— $(2)$(2)
Contractual severance costs(1)(1)— 
Consulting and other costs(2)
— 28 23 
Total$(1)$25 $21 
_____________
(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, 2025, 2024 and 2023, cash payments for restructuring related costs were approximately $0, $28 and $26, respectively, while the reserve was $4 and $4 at December 31, 2025 and 2024, respectively. The balance at December 31, 2025 is expected to be paid over the next twelve months.