v3.26.3
Revenue
 9 Months Ended
Sep. 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
September 30,		Nine Months Ended
September 30,
2026202520262025
Primary geographical markets(1):
United States$1,062 $1,124 $3,114 $2,905 
Europe476 511 1,536 1,351 
Canada119 125 377 336 
Latin America103 87 289 174 
Asia Pacific54 65 160 88 
Other54 49 160 140 
Total Revenues$1,868 $1,961 $5,636 $4,994 
Major product and services lines:
Equipment$393 $383 $1,158 $1,003 
Supplies, paper and other sales434 445 1,340 789 
Maintenance agreements(2)
414 440 1,256 1,187 
IT products(3)
127 165 372 423 
Service arrangements(4)
403 425 1,246 1,294 
Rental and other73 71 188 201 
Financing24 32 76 97 
Total Revenues$1,868 $1,961 $5,636 $4,994 
Sales channels:
Direct equipment lease(5)
$101 $117 $282 $337 
Distributors & resellers(6)
495 480 1,543 927 
Customer direct358 396 1,045 951 
Total Sales$954 $993 $2,870 $2,215 
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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 $33 and $34 at September 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 $264 and $279 at September 30, 2026 and December 31, 2025, respectively. The majority of the balance at September 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(76)(59)
Billings and customer advances(1)
68 63 
Foreign currency and other— (4)
Acquisition(2)
— 22 
Balance at March 31st
$271 $152 
Revenue recognized(79)(76)
Billings and customer advances(1)
72 61 
Foreign currency and other1 — 
Acquisition(2)
5 — 
Balance at June 30th
$270 $137 
Revenue recognized(87)(116)
Billings and customer advances(1)
85 131 
Foreign currency and other(4)(3)
Acquisition(2)
— 170 
Balance at September 30th
$264 $319 
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(1)Excludes revenue recognized during the period.
(2)2026 relates to Lexmark Acquisition-related activity and 2025 relates to both Lexmark and ITSavvy acquisition-related activity. Refer to Note 6 - Acquisition for additional information.

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 $636 at September 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 
Acquisition(2)
— 17 
Customer contract costs deferred14 16 
Amortization of customer contract costs(18)(17)
Other(1)
(2)(1)
Balance at September 30th,$149 $158 
_____________
(1)Includes currency
(2)Includes customer contract costs related to the Lexmark Acquisition. Refer to Note 6 - Acquisition for additional information.
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.