v3.26.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Short-term Borrowings
Short-term borrowings were as follows:
December 31,
 20252024
Short-term debt and current portion of long-term debt
Xerox Holdings Corporation$121 $388 
Xerox Corporation109 130 
Xerox - Other Subsidiaries(1)
1 67 
Total$231 $585 
_____________
(1)Represents subsidiaries of Xerox Corporation.
Schedule of Long-term Debt
Long-term debt was as follows:
December 31,
 Stated Rate
Weighted Average Interest Rates at December 31, 2025(1) 
20252024
Xerox Holdings Corporation
Senior Notes due 20255.00 %— %$— $388 
Senior Notes due 202613.00 %18.61 %125 — 
Senior Notes due 20285.50 %5.40 %750 750 
Senior Notes due 20298.88 %8.88 %500 500 
Senior Notes due 203013.00 %13.00 %250 — 
Convertible Senior Notes due 20303.75 %3.75 %400 400 
Subtotal - Xerox Holdings Corporation$2,025 $2,038 
Xerox Corporation
Term Loan B due 2029(2)(3)
7.71 %7.71 %$706 $523 
Secured Promissory Note due 2025(2)
— %— %— 110 
Secured Promissory Note due 2026(2)
— %5.53 %110 110 
Senior Secured Notes due 2030(2)
10.25 %10.50 %400 — 
Senior Secured Notes due 2031(2)
13.50 %14.16 %500 — 
Senior Notes due 20354.80 %4.84 %250 250 
Senior Notes due 20396.75 %6.78 %350 350 
Subtotal - Xerox Corporation$2,316 $1,343 
Xerox - Other Subsidiaries(2)
France— 70 
Lexmark3 — 
Subtotal Xerox - Other Subsidiaries$3 $70 
Principal debt balance$4,344 $3,451 
Xerox Holdings Corporation - Debt issuance costs(20)(19)
Xerox Corporation - Debt issuance costs(39)(11)
Xerox - Other subsidiaries - Debt issuance costs— — 
Subtotal - Debt issuance costs$(59)$(30)
Unamortized (discount) premium(38)(22)
Less: current maturities (231)(585)
Total Long-term Debt$4,016 $2,814 
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(1)Represents the weighted average effective interest rate, which includes the effect of discounts, premiums and imputed interest on issued debt.
(2)Represent secured borrowings of Xerox Corporation and its Other subsidiaries. Refer to the Secured Borrowings and Collateral section below for additional information regarding the secured borrowings of Other subsidiaries, which are secured by finance receivables.
(3)The stated rate and the weighted average interest rate for the TLB is SOFR plus a margin of 4.00%, which is the option selected by Xerox per the terms of the agreement. Refer to the Term Loan B Credit Facility discussion below for additional information on the TLB.
Step-Up DateInterest Rate Step-Up
July 1, 202613.500 %
July 1, 202714.000 %
October 1, 202714.125 %
January 1, 202814.250 %
April 1, 202814.500 %
July 1, 202814.750 %
October 1, 202815.000 %
January 1, 202915.250 %
April 1, 202915.500 %
July 1, 202915.750 %
October 1, 202916.000 %
January 1, 203016.250 %
April 1, 203016.500 %
July 1, 203016.750 %
Schedule of Maturities of Long-term Debt
Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows:
2026(1)
2027202820292030ThereafterTotal 
Xerox Holdings Corporation$125 $25 $775 $531 $569 $— $2,025 
Xerox Corporation110 51 90 565 400 1,100 2,316 
Xerox - Other Subsidiaries(2)

1 1 1 — — — 3 
Total$236 $77 $866 $1,096 $969 $1,100 $4,344 
_____________
(1)Current portion of long-term debt maturities for 2026 are $110, $125, $1 and $0 for the first, second, third and fourth quarters, respectively.
(2)Represents subsidiaries of Xerox Corporation.
We have entered into transactions, and continue to seek opportunities to reduce our borrowings in a cost and cash efficient manner, including strategies to retire debt that has recently traded at significant discounts. Refer to Note 26 - Subsequent Events, for additional information.
Schedule of Interest Income and Interest Expense Disclosure Interest expense and interest income was as follows:
Year Ended December 31,
202520242023
Equipment financing interest(1)
$86 $106 $130 
Non-financing interest expense(1)(2)
248 119 68 
Interest expense$334 $225 $198 
Financing income(3)
$126 $151 $191 
Other interest income(3)
14 14 16 
Interest income$140 $165 $207 
_____________
(1)Equipment financing interest, which is included in Cost of services, maintenance, rentals and other, and non-financing interest expense, which is included in Other expenses, net, in the Consolidated Statements of (Loss) Income.
(2)Interest expense of Xerox Corporation included intercompany expense associated with the Xerox Holdings Corporation/Xerox Corporation Intercompany Loan of $136, $111 and $80 for the three years ended December 31, 2025, 2024 and 2023, respectively.
(3)Financing income, which is included in Services, maintenance, rentals and other, and other interest income, which is included in Other expenses, net, in the Consolidated Statements of (Loss) Income.