v3.26.3
Restructuring Programs
 9 Months Ended
Sep. 30, 2026
Restructuring and Related Activities [Abstract]  
Restructuring Programs Restructuring Programs
In connection with our ongoing Transformation activities, we engage in restructuring actions in order to reduce our cost structure and realign it to the changing nature of our business. Our restructuring actions are currently related to our efforts to integrate and consolidate certain operations of the legacy Xerox and Lexmark businesses following the Lexmark Acquisition in 2025, as well as our prior restructuring programs, including Reinvention (now referred to as Transformation). Our restructuring actions may also include the off-shoring and/or outsourcing of certain operations, services and other functions, exit from certain product lines and geographies, as well as reducing our real estate footprint.
Restructuring and related costs, net reflect the following components:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Restructuring charges, net$9 $65 $80 $79 
Asset charges, net4 (6)(2)(10)
Related costs, net1 — 4 (1)
Total Restructuring and related costs, net$14 $59 $82 $68 
Restructuring Charges, Net
Restructuring charges, net primarily relate to the Print and Other segment for all restructuring programs, as amounts related to the IT Solutions segment were immaterial for the three and nine months ended September 30, 2026. A summary of our restructuring program activity is as follows:
Severance Costs Prior ActionsSeverance Costs ReinventionSeverance Costs Integration
Other Contractual Termination Costs(2)
Total
Balance at December 31, 2025$1 $43 $77 $5 $126 
Restructuring provision— — 56 — 56 
Reversals of prior charges— (2)(9)— (11)
Net current period charges(1)
— (2)47 — 45 
Charges against reserve and currency— (1)(26)— (27)
Balance at March 31, 20261 40 98 5 144 
Restructuring provision— — 31 — 31 
Reversals of prior charges— — (5)— (5)
Net current period charges(1)
— — 26 — 26 
Charges against reserve and currency— (3)(17)— (20)
Balance at June 30, 20261 37 107 5 150 
Restructuring provision— — 13 — 13 
Reversals of prior charges— — (4)— (4)
Net current period charges(1)
— — 9 — 9 
Charges against reserve and currency— (1)(19)— (20)
Balance at September 30, 2026$1 $36 $97 $5 $139 
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(1)Represents the net restructuring charges recognized in the Condensed Consolidated Statements of (Loss) for the period. Reversals of prior charges primarily include net changes in estimated reserves from prior period initiatives accrued for in prior periods, including Reinvention (now referred to as Transformation) and Integration.
(2)Primarily includes additional costs incurred upon the exit from our facilities, including decommissioning costs and associated contractual termination costs. We expect that the majority of these costs will be paid upon the exercise of an early termination clause in 2027.
At September 30, 2026, we expect to pay $80 of the restructuring reserve within the next twelve months.
The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows:
Nine Months Ended
September 30,
20262025
Restructuring cash payments$(60)$(41)
Effects of foreign currency and other non-cash items(7)6 
Charges against reserve and currency$(67)$(35)
Asset Charges, Net
Asset charges are related to strategic actions associated with our ongoing transformation programs. The amounts are net of any sublease income or other recovery amounts. Asset charges during 2026 were associated with an owned facility, and asset charges during 2025 were associated with an operating lease ROU asset and the sale of a facility.
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Lease right of use assets(1)
$— $— $— $4 
Owned assets(2)
4 — 4 11 
Asset charges4 — 4 15 
Adjustments(3)
— 10 — 10 
Less: Proceeds from the sales of owned assets(4)
— (16)(6)(35)
Net asset charge (credit)$4 $(6)$(2)$(10)
_____________
(1)Primarily related to the exit and abandonment of leased facilities, net of recoveries and any potential sublease income.
(2)Primarily related to the exit and abandonment of owned facilities.
(3)Reflects adjustments of charges taken in prior periods.
(4)Reflects proceeds on the sales of exited surplus facilities and land.
Related Costs, Net
In connection with our restructuring programs, we also incurred certain related costs as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Retention related severance/bonuses(1)
$(2)$(1)$(2)$(1)
Contractual severance costs$3 $1 $6 $— 
Total$1 $— $4 $(1)
_____________
(1) Includes retention-related severance and bonuses for employees expected to continue working beyond their minimum retention period before termination.

For the nine months ended September 30, 2026 and 2025 cash paid for restructuring related costs was $6 and $(1), respectively, and the restructuring related costs reserve was $2 and $4 at September 30, 2026 and December 31, 2025, respectively. The balance at September 30, 2026 is expected to be paid within the next twelve months.