Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation. As discussed in Note 21 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of the continuing litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Cash, cash equivalents and restricted cash amounts are as follows:


	September 30, 2026		December 31, 2025
Cash and cash equivalents	$	412	$	512
Restricted cash

Litigation deposits in Brazil	23		21

Joint venture financing arrangement(1)	21		—
Tariff receivables monetization(1)	17		—
Supplier finance programs	27		—
Other restricted cash	30		32
Total Restricted cash	118		53
Cash, cash equivalents and restricted cash	$	530	$	565


Source/(Use)	Location in Statement of Cash Flows	Nine Months Ended September 30,
			2026		2025
Provision for receivables	Operating		$	19	$	36
Provision for inventory	Operating		30		31
Depreciation of buildings and equipment	Operating		65		52
Depreciation and obsolescence of equipment on operating leases	Operating		114		103
Amortization of internal use software	Operating		26		19

Amortization of acquired intangible assets	Operating		91		50

Amortization of customer contract costs(1)	Operating		53		50

Cost of additions to land, buildings and equipment	Investing		(39)		(21)
Cost of additions to internal use software	Investing		(31)		(46)
Payments to acquire noncontrolling interests - Xerox Holdings	Investing		(16)		(9)
Proceeds from borrowings under the ABL Facility(2)	Financing		100		188
Payments on borrowings under the ABL Facility(2)	Financing		(100)		(88)
Common stock dividends - Xerox Holdings	Financing		(13)		(54)
Preferred stock dividends - Xerox Holdings	Financing		(11)		(11)




Proceeds from issuance of warrants	Financing		—		11
Commitment fees	Financing		—		(22)

(1)Amortization of customer contract costs is reported in (Increase) decrease in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows. Refer to Note 3 - Revenue - Contract Costs for additional information.

(2)Proceeds from / (payments) under the ABL Facility are reported in Net (payments) proceeds on short term debt in the Condensed Consolidated Statements of Cash Flows. Refer to Note 12 - Debt - Revolving Credit Facility for additional information regarding our ABL Facility.

We have a program through a financial institution that enables vendors and suppliers, at their option, to receive early payment for their invoices. All outstanding amounts related to the program are recorded within Accounts payable in our Condensed Consolidated Balance Sheets, and the associated payments are included in operating activities within our Condensed Consolidated Statements of Cash Flows. The program operates in a similar manner to a purchasing card program, however with this program we directly receive invoices associated with those vendors and suppliers participating in the program and confirm and validate those invoices and the amounts due before submitting the invoices to the financial institution for early payment at a discounted amount. The financial institution subsequently invoices us for the stated or full amount of the invoices paid early and we are required to make payment within 45 days of the statement date. The overall impact of the program generally results in paying our supplier and vendor invoices consistent with their original terms. This program is generally available to all non-inventory vendors and suppliers.



	2026		2025
Balance at January 1st	$	18	$	30
Amounts invoiced	18		22
Invoices paid	(18)		(33)
Balance at March 31st	$	18	$	19
Amounts invoiced	21		22
Invoices paid	(26)		(21)
Balance at June 30th	$	13	$	20
Amounts invoiced	21		21
Invoices paid	(22)		(22)
Balance at September 30th	$	12	$	19