v3.26.1
Supplementary Financial Information
 12 Months Ended
Dec. 31, 2025
Supplemental Financial Information [Abstract]  
Supplementary Financial Information Supplementary Financial Information
The components of Other assets and liabilities are as follows:
December 31,
20252024
Other Current Assets  
Income taxes receivable$44 $22 
Royalties, license fees and software maintenance30 19 
Restricted cash31 33 
Prepaid expenses112 39 
Advances and deposits14 17 
Contract assets and other deferred contract costs47 2 
Other84 80 
Total Other Current Assets$362 $212 
Other Long-term Assets  
Income taxes receivable$54 $45 
Prepaid pension costs 578 421 
Internal use software, net146 60 
Restricted cash22 22 
Customer contract costs, net163 139 
Operating lease right-of-use assets311 179 
Deferred compensation plan investments12 13 
Investments in affiliates, at equity(1)
55 49 
Investments at cost - Xerox Holdings41 40 
Other97 89 
Total Other Long-term Assets(2)
$1,479 $1,057 
Accrued Expenses and Other Current Liabilities  
Income taxes payable$75 $33 
Other taxes payable79 46 
Operating lease obligations64 45 
Interest payable69 37 
Restructuring reserves67 86 
Dividends payable - Xerox Holdings(3)
13 43 
Distributor and reseller rebates/commissions447 118 
Unearned income and other revenue deferrals190 133 
Administration and overhead41 44 
Other213 199 
Total Accrued Expenses and Other Current Liabilities(4)
$1,258 $784 
Other Long-term Liabilities  
Deferred taxes $138 $85 
Income taxes payable26 4 
Operating lease obligations263 143 
Environmental reserves12 12 
Restructuring reserves59 23 
Unearned income109 19 
Other78 100 
Total Other Long-term Liabilities$685 $386 
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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 $1,438 and $1,017 at December 31, 2025 and 2024, respectively, excludes Investments at cost.
(3)Represents dividends payable by Xerox Holdings Corporation on Common and Preferred Stock.
(4)Xerox's balances of $1,245 and $741 at December 31, 2025 and 2024, respectively, excludes dividends payable of $13 and $43, respectively.
Cash, Cash Equivalents and Restricted Cash
Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation. 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 the continuing 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,
 20252024
Cash and cash equivalents$512 $576 
Restricted cash
Litigation deposits in Brazil21 20 
Escrow and cash collections related to secured borrowings and receivable sales— 13 
Other restricted cash32 22 
Total Restricted cash53 55 
Cash, cash equivalents and restricted cash$565 $631 
Restricted cash is reported in the Consolidated Balance Sheets as follows:
December 31,
20252024
Other current assets$31 $33 
Other long-term assets22 22 
Total Restricted cash$53 $55 
Supplemental Cash Flow Information
Summarized cash flow information is as follows:
Source/(Use)Location in Statement of Cash FlowsYear Ended December 31,
202520242023
Provision for receivables(1)
Operating$40 $44 $36 
Provision for inventoryOperating45 66 18 
Depreciation of buildings and equipmentOperating75 57 60 
Depreciation and obsolescence of equipment on operating leasesOperating143 117 111 
Amortization of internal use softwareOperating30 27 37 
Amortization of acquired intangible assetsOperating83 73 43 
Amortization of patents(2)
Operating6 9 9 
Amortization of customer contract costs(3)
Operating67 64 69 
Cost of additions to land, buildings and equipmentInvesting(37)(27)(29)
Cost of additions to internal use softwareInvesting(54)(17)(8)
Payments to acquire noncontrolling interests - Xerox HoldingsInvesting(13)(30)(5)
Common stock dividends - Xerox HoldingsFinancing(57)(127)(151)
Preferred stock dividends - Xerox HoldingsFinancing(14)(14)(14)
Repurchases related to stock-based compensation - Xerox HoldingsFinancing(6)(10)(8)
Payments to noncontrolling interestsFinancing(2)(2)(2)
Proceeds from issuance of warrantsFinancing11 — — 
Commitment feesFinancing(22)— — 
Finance lease obligations paymentFinancing(10)(10)(7)
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(1)Provision for receivables includes adjustments for customer accommodations and contract terminations of $1, $2, and $8 for the three years ended December 31, 2025, 2024 and 2023, respectively.
(2)Amortization of patents is reported in Decrease (increase) in other current and long-term assets on the Consolidated Statements of Cash Flows.
(3)Amortization of customer contract costs is reported in Decrease (increase) 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
We have a program through a financial institution that enables vendors and suppliers, at their option, to receive early payment for their invoices. 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 program operates in a similar manner to a purchasing card program, however with this program we directly receive invoices associated with those vendors and suppliers participating in the program and confirm and validate 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 us 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 paying our supplier and vendor invoices consistent with their original terms. This program is generally available to all non-inventory vendors and suppliers.
Activity related to the Company's supplier finance program is as follows:
202520242023
Balance at January 1st,$30 $40 $40 
Amounts invoiced86 110 125 
Invoices paid(98)(120)(125)
Balance at December 31st,$18 $30 $40