v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Primary geographical markets(1):
United States$1,051 $930 $2,052 $1,780 
Europe531 438 1,060 840 
Canada132 108 258 211 
Latin America97 46 186 87 
Asia Pacific58 10 106 23 
Other53 44 106 92 
Total Revenues$1,922 $1,576 $3,768 $3,033 
Major product and services lines:
Equipment$387 $336 $765 $620 
Supplies, paper and other sales469 176 906 344 
Maintenance agreements(2)
425 379 842 747 
IT products(3)
140 153 245 258 
Service arrangements(4)
421 439 843 868 
Rental and other55 61 115 131 
Financing25 32 52 65 
Total Revenues$1,922 $1,576 $3,768 $3,033 
Sales channels:
Direct equipment lease(5)
$90 $108 $181 $220 
Distributors & resellers(6)
523 238 1,048 447 
Customer direct383 319 687 555 
Total Sales$996 $665 $1,916 $1,222 
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(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.
(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners, as well as services revenues related to our IT Solutions.
(3)IT products include IT hardware and software solutions sold by the IT Solutions segment.
(4)Primarily includes revenues from our Print outsourcing arrangements including revenues from embedded operating leases in those arrangements.    
(5)Primarily reflects sales through bundled lease arrangements.
(6)Primarily reflects sales through our two-tier distribution channels.
Contract Assets and Liabilities: Our contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time were $39 and $34 at June 30, 2026 and December 31, 2025, respectively. Our contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advance billings for maintenance and other services to be performed, were approximately $270 and $279 at June 30, 2026 and December 31, 2025, respectively. The majority of the balance at June 30, 2026 will be amortized to revenue over the next 30 months. The following table summarizes our contract liabilities activity:
20262025
Balance at January 1st
$279 $130 
Revenue recognized(1)
(76)(59)
Billings and customer advances(2)
68 63 
Foreign currency and other— (4)
Acquisition(3)
— 22 
Balance at March 31st
$271 $152 
Revenue recognized(1)
(79)(76)
Billings and customer advances(2)
72 61 
Foreign currency and other1 — 
Acquisition(3)
5 — 
Balance at June 30th
$270 $137 
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(1)Reflects amounts included in the January 1st beginning balance.
(2)Excludes revenue recognized during the period.
(3)2026 relates to Lexmark Acquisition-related activity and 2025 relates to ITSavvy acquisition-related activity.

Our unsatisfied performance obligations primarily relate to multi-year managed services arrangements and extended warranty contracts where revenue is recognized over time. The aggregate amount of the transaction price allocated to unsatisfied performance obligations including the amounts included in contract liabilities for committed customers was $596 at June 30, 2026. The Company expects to recognize these revenues over the next one to five years based upon the nature of the associated agreements. Estimated amounts are subject to change due to various factors including, but not limited to the following: contract terminations, changes in contract scope, revised estimates, unrealized revenue adjustments, and currency fluctuations.
Contract Costs:
We incur the following contract costs as part of our revenue arrangements:
•Incremental direct costs of obtaining a contract are primarily sales commissions paid to salespeople and agents in connection with the placement of equipment with post sale services arrangements. These costs are deferred and amortized to Selling Expenses on a straight-line basis over the estimated contract term, which is currently estimated to be approximately five years.
•Contract fulfillment costs, which are costs incurred for resources and assets that will be used to satisfy our future performance obligations included in our service arrangements. These costs are amortized over the contractual service period of the arrangement to cost of services.
•Contract inducements are capitalized and amortized as a reduction of revenue over the term of the contract.
Changes in contract costs, net are as follows:
20262025
Balance at January 1st,$163 $139 
Customer contract costs deferred17 17 
Amortization of customer contract costs(17)(16)
Other(1)
(3)— 
Balance at March 31st,$160 $140 
Customer contract costs deferred12 18 
Amortization of customer contract costs(18)(17)
Other(1)
1 2 
Balance at June 30th,$155 $143 
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(1)Includes currency
Equipment and software used in the fulfillment of service arrangements, and where the Company retains control, are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.