v3.26.1
Fair Value of Financial Assets and Liabilities
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities Fair Value of Financial Assets and Liabilities
The following table represents assets and liabilities' fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs.
As of December 31,
20252024
Assets
Derivatives$8 $11 
Deferred compensation investments in mutual funds12 13 
Total$20 $24 
Liabilities
Derivatives$10 $8 
Deferred compensation plan liabilities11 11 
Total$21 $19 
We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2.
Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections.
Summary of Other Financial Assets and Liabilities
The estimated fair values of our other financial assets and liabilities were as follows:
 December 31, 2025December 31, 2024
 Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Cash and cash equivalents$512 $512 $576 $576 
Accounts receivable, net1,122 1,122 796 796 
Short-term debt and current portion of long-term debt(1)
231 236 585 592 
Long-term debt
Xerox Holdings Corporation$1,872 $800 $1,634 $1,391 
Xerox Corporation2,142 1,676 1,177 989 
Xerox - Other Subsidiaries(2)
2 2 3 3 
Total Long-term debt$4,016 $2,478 $2,814 $2,383 
_____________
(1)Includes $121 and $388 of Xerox Corporation related party debt for the years ended December 31, 2025 and 2024 , respectively.
(2)Represents subsidiaries of Xerox Corporation.
The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short-term debt, including the current portion of long-term debt, and Long-term debt was estimated based on the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.