v3.26.3
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Selected financial information for our reportable segments was as follows:
Three months ended September 30, 2026
Print and OtherIT Solutions
Total Reportable Segments(1)
Corporate(2)
Total
External revenue$1,688 $180 $1,868 $— $1,868 
Intersegment revenue(3)
— 7 7 — 7 
Total$1,688 $187 $1,875 $— $1,875 
Reconciliation to Segment Profit
Cost of sales(4)
$545 $102 $647 $— $647 
Cost of services, maintenance, rentals and other(4)
628 43 671 — 671 
Research, development and engineering expenses(4)
56 — 56 — 56 
Selling, administrative and general expenses(4)(5)(6)
324 26 350 20 370 
Intersegment expense(7)
(1)8 7 — 7 
Segment profit$136 $8 $144 $(20)$124 
Depreciation$64 $— $64 $— $64 
Interest income(8)
24 — 24 2 26 
Interest expense(9)
17 — 17 93 110 
Three months ended September 30, 2025
Print and OtherIT Solutions
Total Reportable Segments(1)
Corporate(2)
Total
External revenue$1,739 $222 $1,961 $— $1,961 
Intersegment revenue(3)
— 4 4 — 4 
Total$1,739 $226 $1,965 $— $1,965 
Reconciliation to Segment Profit
Cost of sales(10)(11)(12)
$548 $131 $679 $— $679 
Cost of services, maintenance, rentals and other(11)(12)
668 48 716 — 716 
Research, development and engineering expenses74 — 74 — 74 
Selling, administrative and general expenses(5)(6)
385 25 410 17 427 
Intersegment expense(7)
— 4 4 — 4 
Segment profit$64 $18 $82 $(17)$65 
Depreciation$76 $1 $77 $— $77 
Interest income(8)
32 — 32 3 35 
Interest expense(9)
21 — 21 80 101 
Nine months ended September 30, 2026
Print and OtherIT Solutions
Total Reportable Segments(1)
Corporate(2)
Total
External revenue$5,113 $523 $5,636 $— $5,636 
Intersegment revenue(3)
— 14 14 — 14 
Total$5,113 $537 $5,650 $— $5,650 
Reconciliation to Segment Profit
Cost of sales(4)
$1,516 $300 $1,816 $— $1,816 
Cost of services, maintenance, rentals and other(4)
1,886 126 2,012 — 2,012 
Research, development and engineering expenses(4)
186 — 186 — 186 
Selling, administrative and general expenses(4)(5)(6)
1,080 78 1,158 65 1,223 
Intersegment expense(7)
2 12 14 — 14 
Segment profit$443 $21 $464 $(65)$399 
Depreciation$204 $1 $205 $— $205 
Interest income(8)
76 — 76 8 84 
Interest expense(9)
54 — 54 277 331 
Nine months ended September 30, 2025
Print and OtherIT Solutions
Total Reportable Segments(1)
Corporate(2)
Total
External revenue$4,399 $595 $4,994 $— $4,994 
Intersegment revenue(3)
— 8 8 — 8 
Total$4,399 $603 $5,002 $— $5,002 
Reconciliation to Segment Profit
Cost of sales(10)(11)(12)
$1,187 $343 $1,530 $— $1,530 
Cost of services, maintenance, rentals and other(11)(12)
1,858 146 2,004 — 2,004 
Research, development and engineering expenses159 — 159 — 159 
Selling, administrative and general expenses(5)(6)
1,025 73 1,098 57 1,155 
Intersegment expense(7)
— 8 8 — 8 
Segment profit$170 $33 $203 $(57)$146 
Depreciation$173 $1 $174 $— $174 
Interest income(8)
97 — 97 11 108 
Interest expense(9)
66 — 66 168 234 
_____________
(1)The prior year presentation has been updated to conform with the current year's presentation.
(2)Certain administrative and general expenses, which primarily relate to Corporate functions, are not allocated to either of our operating/reportable segments.
(3)Intersegment revenue is primarily revenue from IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment.
(4)The Print and Other segment excludes the impact of a fixed asset purchase accounting adjustment related to the Lexmark Acquisition of $5 and $15 to Cost of sales, $0 and $11 to Cost of services, maintenance, rentals and other, $0 and $1 to Research, development, and engineering expenses, and $1 and $2 to Selling, administrative and general expenses for the three and nine months ended September 30, 2026, respectively.
(5)For the three months ended September 30, 2026 and 2025, the Print and Other segment excludes the following costs: Transformation costs of $3 and $3, respectively and Transaction-related costs of $0 and $47, respectively. For the nine months ended September 30, 2026 and 2025, the Print and Other segment excludes Transformation costs of $7 and $12, respectively, and Transaction-related costs of $4 and $56, respectively.
(6)Selling, administrative and general expenses include bad debt expense related to the Print and Other segment of $0 and $9 for the three months ended September 30, 2026 and 2025, respectively and $17 and $33 for the nine months ended September 30, 2026 and 2025, respectively.
(7)Intersegment expense primarily consists of costs related to the sale of IT hardware, software solutions and services by the IT Solutions segment, to the Print and Other segment.
(8)Print and Other includes financing income, which is included in Services, maintenance, rentals and other. This is fully allocated to the Print and Other segment in support of its financing business. No financing income is allocated to the IT Solutions segment, as the segment has no finance assets.
(9)The Print and Other segment includes equipment financing interest expense associated with the financing debt of the Company. This is fully allocated to the Print and Other segment in support of its Finance assets. No interest expense is allocated to the IT Solutions segment, as the segment has no financing debt. Corporate includes Non-financing interest expense.
(10)For the three and nine months ended September 30, 2025 the Print and Other segment excludes the impact of an inventory purchase accounting adjustment related to the Lexmark Acquisition of $102 to Cost of sales, respectively
(11)As a result of the exit of certain production print manufacturing operations, the Print and Other segment excludes inventory-related charges of $0 and $11 within Cost of sales, and $3 and $9 within Cost of services, maintenance, rentals and other for the three and nine months ended September 30, 2025, respectively.
(12)For the three and nine months ended September 30, 2025 the Print and Other segment excludes the impact of a fixed asset purchase accounting adjustment related to the Lexmark Acquisition of $8 to Cost of sales, respectively, and $8 to Cost of services, maintenance, rentals and other, respectively.
Selected financial information for our reportable segments was as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Pre-tax (Loss)
Total Segment Profit$144 $82 $464 $203 
Corporate(20)(17)(65)(57)
Restructuring and related costs, net(14)(59)(82)(68)
Amortization of intangible assets(31)(30)(91)(50)
Transformation-related costs(1)
(3)(3)(7)(12)
Purchase Accounting Adjustment - Fixed Assets(6)(16)(29)(16)
Purchase Accounting Adjustment - Inventory— (102)— (102)
Settlement of pre-existing employment agreements— (24)— (24)
Transaction-related costs— (23)(4)(32)
Inventory-related impact - exit of certain production print manufacturing operations— (3)— (20)
Goodwill impairment(959)— (959)— 
Divestiture— — — 4 
Non-financing interest expense(93)(80)(277)(168)
Other expenses (income), net(24)(25)2 (85)
Total Pre-tax (loss)$(1,006)$(300)$(1,048)$(427)
Depreciation and Amortization
Total reported segments$64 $77 $205 $174 
Amortization of intangible assets31 30 91 50 
Total Depreciation and amortization$95 $107 $296 $224 
__________
(1)In the first quarter of 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs.