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美利坚合众国
证券交易委员会
华盛顿特区20549
表格 10-Q
(标记一个)
☒根据1934年证券交易法第13或15(d)条款的季度报告。
截至本季度结束 2024年9月30日
☐根据1934年证券交易法第13或15(d)条款的过渡报告
从到过渡期间
xeroxlogoredrgbtma07.jpg
施乐控股有限公司
施乐公司
（依据其章程规定的登记人的正式名称）
纽约001-3901383-3933743
纽约001-0447116-0468020
(成立地或组织其他管辖区)（报告书文件号码）(国税局雇主身份识别号码)
邮政信箱4505号, 201 Merritt 7
Norwalk, 康涅狄格州 06851-1056
(主要执行办公室的地址和邮政编码)
(203) 849-5216
(注册公司之电话号码，包括区号)
根据法案第12(b)条规定注册的证券：
施乐控股有限公司
普通股，每股面值 1 美元：XRX纳斯达克全球货币选择市场
（每类标题）（交易符号）（每个注册交易所的名称）
请打勾表示该登记者（1）在过去12个月内（或登记者需要提交此类报告的较短期间内）已提交证券交易法1934年第13条或15(d)条所要求提交的所有报告，并（2）在过去90天内一直受到此类提交要求的限制。
施乐控股有限公司 是 ☒否☐             施乐公司 是 ☒否☐
请用勾号表示，登记者在过去12个月内（或要求提交此类文件的时间较短期间内）是否按照Regulation S-t（本章节第232.405条）的规定，已经电子提交了规定提交的所有互动数据文件？
施乐控股有限公司 是 ☒否☐             施乐公司 是 ☒否☐
请勾选表示登记者是否为大型加速递交人、加速递交人、非加速递交人、较小的报告公司或新兴增长公司。请参阅《交易所法》第120条2款中“大型加速递交人”、“加速递交人”、“较小的报告公司”和“新兴增长公司”的定义。            
施乐控股有限公司施乐公司
大型加速归档人☒大型加速归档人☐
加速归档人☐加速归档人☐
非加速归档人☐非加速归档人☒
小型报告公司☐小型报告公司☐
新兴成长型企业☐新兴成长型企业☐
如果一家新兴成长型公司，请用勾选标记表示该申报人已选择不使用根据证交所法案13(a)条款提供的任何新的或修订过的财务会计准则的延长过渡期。
施乐控股有限公司 o      施乐公司 o
请用核对标记表示，申报人是否为外壳公司（即交易所法120亿2条所定义的公司）。
施乐控股有限公司 是☐ 否☒              施乐公司 是☐ 否☒
Class A普通股 于2024年10月31日的未偿余额
施乐控股公司普通股，面值$1 124,374,092 股份


有关向前看语句的警示性陈述，涉及1995年私人证券诉讼改革法案提供的安全港规定，关于债券发行的结束和本公司资金用途的意图。向前看语句可能通过使用向前看术语，如“意图”，“可能”，“将”，“期望”，“相信”，“预计”，“计划”，“估计”，“项目”，“假设”，“指导方针”，“目标”，“预测”，“看到”，“寻求”，“应该”，“可能会”，以及类似的表达方式或这些术语的否定或其他类似的表达方式或可比的术语识别。所有此类陈述，除了现有或现行
这份合并的第十章季度报告 (Form 10-Q)，以及管理层不时所作的书面或口头声明，包含根据《1995年私人证券诉讼改革法》定义的「前瞻性陈述」，涉及特定风险和不确定性。"Anticipate"、"believe"、"estimate"、"expect"、"intend"、"will"、"would"、"could"、"can" "should"、"targeting"、"projecting"、"driving"、"future"、"plan"、"predict"、"may" 以及类似的用语，旨在识别前瞻性陈述。前瞻性陈述并非未来表现的保证，公司的实际结果可能与前瞻性陈述中所讨论的结果有显著差异。可能导致这些差异的因素包括但不限于，施乐控股公司和施乐公司2023年12月31日结束的年度第十章十股报告中所讨论的第一部分1A项目的「风险因素」。公司假设不因任何原因而修改或更新前瞻性陈述，除非法律要求。
在整份10-Q表中，“施乐集团”指的是施乐集团有限公司及其合并子公司，而“施乐”则指施乐股份有限公司及其合并子公司。本文中提到的“我们”、“我们的”或“公司”则是指施乐集团和施乐的整体，除非上下文另有暗示。提到“施乐集团有限公司”指的是独立的母公司，并不包括其子公司。而“施乐股份有限公司”则是指独立的公司，不包括子公司。
施乐控股公司的主要直接营运子公司是施乐，因此施乐反映了几乎所有施乐控股公司的业务。


施乐2024年第10-Q表格 1

施乐控股有限公司
施乐公司
表格10-Q
2024年9月30日
目 录
 
 页面
如需了解更多施乐控股公司和施乐公司的信息，以及免费查阅我们的股东周年报告和SEC申报文件，请访问我们的网站www.xerox.com/investor。除非明确注明，我们网站的内容并未被引用到本10-Q合并表格中。
 
施乐2024年第10-Q表格 2

第一部分 — 财务资讯
项目1 － 基本报表

施乐控股有限公司
未经审核的简明综合损益表

 结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
（以百万为单位，除每股数据外）2024202320242023
收益
销售额$588 $644 $1,722 $1,999 
服务、维护和租赁902 962 2,768 2,975 
融资38 46 118 147 
总收益1,528 1,652 4,608 5,121 
成本和费用
销货成本390 435 1,117 1,312 
服务、维护和租金成本617 651 1,951 1,987 
融资成本26 30 82 100 
研究、发展和工程费用45 52 144 173 
销售、管理和一般性开支370 416 1,160 1,256 
商誉减损1,058 — 1,058 — 
重组及相关成本，净额56 10 107 35 
营业无形资产摊销10 12 30 33 
分拆— — 51 — 
PARC 捐赠— — — 132 
其他支出净额43 (18)120 33 
总费用及支出2,615 1,588 5,820 5,061 
(亏损)税前净利(1,087)64 (1,212)60 
所得税支出118 15 88 1 
净（亏损）收益(1,205)49 (1,300)59 
削减：优先股份送转净额(4)(4)(11)(11)
归属于普通股股东的净（亏损）收益$(1,209)$45 $(1,311)$48 
基本（亏损）每股盈利$(9.71)$0.29 $(10.55)$0.31 
每股摊薄（损失）盈利$(9.71)$0.28 $(10.55)$0.30 



附注是这些缩编合并基本报表的一部分。
施乐2024年第10-Q表格 3

施乐控股有限公司
未经审核的综合损益简明综合财务报表

 结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
(以百万为单位)2024202320242023
净（亏损）收益$(1,205)$49 $(1,300)$59 
其他全面收入（损失），净额(1)
翻译调整（净额）192 (123)140 19 
未实现收益，净额5 1 4 — 
定义福利计划变化，净额(24)55 18 14 
其他综合收益（损失），净173 (67)162 33 
全面（损）收益，净额$(1,032)$(18)$(1,138)$92 
_____________
(1) 请参阅附注19 - 其他全面收入（损失）以了解其他全面收入（损失）的毛元件、净额、重新分类调整、从累计其他全面损失中剔除的相关税后影响。




附注是这些缩编合并基本报表的一部分。

施乐2024年第10-Q表格 4

施乐控股有限公司
简明合并资产负债表（未经查核）

（金额单位：百万，股份资料单位：千）九月三十日，
2024		12月31日，
2023
资产
现金及现金等价物$521 $519 
应收账款（扣除$允许的数额后净额）71 15.164及$，分别为：
821 850 
融资应收帐款（扣除$津贴后的净额3 15.14及$，分别为：
50 71 
融资应收款，净额664 842 
存货732 661 
其他流动资产223 234 
全部流动资产3,011 3,177 
一年后到期的融资应收帐款（扣除$津贴后的净额68 15.188及$，分别为：
1,275 1,597 
经营租赁设备净额255 265 
土地、建筑和设备，净值225 266 
无形资产，扣除累计摊销149 177 
商誉净值1,709 2,747 
递延税款贷项635 745 
其他长期资产1,063 1,034 
总资产$8,322 $10,008 
负债及股东权益
短期负债及长期负债当期偿还款$519 $567 
应付账款895 1,044 
应计薪酬和福利成本227 306 
应计费用及其他流动负债752 862 
流动负债合计2,393 2,779 
长期负债2,752 2,710 
养老金和其他福利负债1,126 1,216 
医疗福利事后166 171 
其他长期负债354 360 
总负债6,791 7,236 
负债和条件（详见注21）
非控制权益10 10 
可转换优先股214 214 
普通股票124 123 
资本公积额额外增资1,123 1,114 
保留收益3,570 4,977 
累积其他全面损失(3,514)(3,676)
施乐控股股东权益1,303 2,538 
非控制权益4 10 
股东权益总额1,307 2,548 
负债及股东权益总计$8,322 $10,008 
已发行并流通中的普通股股份124,363 123,144 

附注是这些简明综合财务报表的一个重要组成部分。
施乐2024年第10-Q表格 5

施乐控股有限公司
未经审核的缩短合并现金流量表

 九个月结束了
九月三十日，
(以百万为单位)20242023
经营活动现金流量
净（亏损）收益$(1,300)$59 
调整使净（亏损）收入与经营活动提供的净现金相符
折旧与摊提177 189 
计提92 37 
资产及企业出售的净收益(3)(37)
分拆51 — 
PARC 捐赠— 132 
股份报酬38 40 
商誉减损1,058 — 
重组和资产减损费用80 25 
重整支付(58)(23)
非劳务相关养老成本74 14 
对养老计划的贡献(114)(75)
应收账款及融资应收帐款的减少（增加）18 (47)
存货增加（减少）(136)50 
营运租赁设备增加(78)(109)
融资应收帐款减少496 490 
其他流动资产和长期资产减少（增加）16 (8)
普通股和认股权的发行收益，扣除发行成本(143)(290)
(减少) 增加应计报酬(78)16 
其他流动负债和长期负债减少(83)(159)
所得税资产和负债净变动44 (24)
衍生性资产和负债净变动9 16 
其他营业费用— 1 
经营活动产生的净现金流量160 297 
投资活动产生的现金流量
土地、建筑、设备和软体增添成本(27)(27)
出售企业和资产的收入27 40 
并购，扣除所得现金净额— (7)
其他投资，净额(26)(3)
投资活动提供的净现金流量（使用）(26)3 
来自融资活动的现金流量
短期负债的净收益— 220 
发行长期债务证券所得906 646 
长期债务付款(913)(997)
购买已设定上限价的认股权(23)— 
分红派息(107)(131)
支付以取得库藏股票为目的的款项，包括费用(3)(544)
其他融资，净额(9)(13)
筹集资金的净现金流量(149)(819)
汇率变动对现金、现金等价物及限制性现金的影响(12)(3)
期末现金及现金等价物减少(27)(522)
期初现金、现金等价物及限制性现金617 1,139 
期末现金，现金等价物和受限现金$590 $617 




附注是这些缩编合并基本报表的一部分。
施乐2024年第10-Q表格 6

施乐公司
综合损益简明综合财务报表（未经审核）

 结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
(以百万为单位)2024202320242023
收益
销售额$588 $644 $1,722 $1,999 
服务、维护和租赁902 962 2,768 2,975 
融资38 46 118 147 
总收益1,528 1,652 4,608 5,121 
成本和费用
销货成本390 435 1,117 1,312 
服务、维护和租金成本617 651 1,951 1,987 
融资成本26 30 82 100 
研究、发展和工程费用45 52 144 173 
销售、管理和一般性开支369 416 1,158 1,256 
商誉减损1,058 — 1,058 — 
重组及相关成本，净额56 10 107 35 
营业无形资产摊销10 12 30 33 
分拆— — 51 — 
PARC 捐助— — — 132 
其他支出净额43 (18)120 33 
总费用及支出2,614 1,588 5,818 5,061 
(亏损)税前净利(1,086)64 (1,210)60 
所得税支出118 15 88 1 
净（亏损）收益$(1,204)$49 $(1,298)$59 








附注是这些缩编合并基本报表的一部分。

施乐2024年第10-Q表格 7

施乐公司
未经审核的综合损益简明综合财务报表

 三个月结束
九月三十日		截止九个月
九月三十日
(以百万计)2024202320242023
净（亏损）收入$(1,204)$49 $(1,298)$59 
其他综合收益（亏损），净额(1)
翻译调整，净值192 (123)140 19 
未实现收益，净值5 1 4 — 
定义保障计划的变动（净额）(24)55 18 14 
其他综合收益（亏损），净额173 (67)162 33 
综合（亏损）收入净额$(1,031)$(18)$(1,136)$92 
_____________
(1) 请参阅附注19 - 其他全面收入（损失）以了解其他全面收入（损失）的毛元件、净额、重新分类调整、从累计其他全面损失中剔除的相关税后影响。



附注是这些缩编合并基本报表的一部分。

施乐2024年第10-Q表格 8

施乐公司
简明合并资产负债表（未经查核）

(以百万为单位)九月三十日，
2024		12月31日，
2023
资产
现金及现金等价物$521 $519 
应收账款（扣除$允许的数额后净额）71 15.164及$，分别为：
821 850 
融资应收帐款（扣除$津贴后的净额3 15.14及$，分别为：
50 71 
融资应收款，净额664 842 
存货732 661 
其他流动资产223 234 
全部流动资产3,011 3,177 
一年后到期的融资应收帐款（扣除$津贴后的净额68 15.188及$，分别为：
1,275 1,597 
经营租赁设备净额255 265 
土地、建筑和设备，净值225 266 
无形资产，扣除累计摊销149 177 
商誉净值1,709 2,747 
递延税款贷项635 745 
其他长期资产1,023 1,008 
总资产$8,282 $9,982 
负债及股东权益
短期负债及长期负债当期偿还款$131 $567 
短期相关方债务388 — 
应付账款895 1,044 
应计薪酬和福利成本227 306 
应计费用及其他流动负债709 820 
流动负债合计2,350 2,737 
长期负债1,119 1,213 
长期相关方债务1,633 1,497 
养老金和其他福利负债1,126 1,216 
医疗福利事后166 171 
其他长期负债354 360 
总负债6,748 7,194 
负债和条件（详见注21）
非控制权益10 10 
资本公积额额外增资3,477 3,485 
保留收益1,557 2,959 
累积其他全面损失(3,514)(3,676)
施乐股东权益1,520 2,768 
非控制权益4 10 
股东权益总额1,524 2,778 
负债及股东权益总计$8,282 $9,982 





附注是这些缩编合并基本报表的一部分。 
施乐2024年第10-Q表格 9

施乐公司
未经审核的缩短合并现金流量表

 九个月结束了
九月三十日，
(以百万为单位)20242023
经营活动现金流量
净（亏损）收益$(1,298)$59 
调整使净（亏损）收入与经营活动提供的净现金相符
折旧与摊提177 189 
计提92 37 
资产及企业出售的净收益(3)(37)
分拆51 — 
PARC 捐赠— 132 
股份报酬38 40 
商誉减损1,058 — 
重组和资产减损费用80 25 
重整支付(58)(23)
非劳务相关养老成本74 14 
对养老计划的贡献(114)(75)
应收账款及融资应收帐款的减少（增加）18 (47)
存货增加（减少）(136)50 
营运租赁设备增加(78)(109)
融资应收帐款减少496 490 
其他流动资产和长期资产减少（增加）14 (8)
普通股和认股权的发行收益，扣除发行成本(143)(290)
(减少) 增加应计报酬(78)16 
其他流动负债和长期负债减少(83)(159)
所得税资产和负债净变动44 (24)
衍生性资产和负债净变动9 16 
其他营业费用— 1 
经营活动产生的净现金流量160 297 
投资活动产生的现金流量
土地、建筑、设备和软体增添成本(27)(27)
出售企业和资产的收入27 40 
并购，扣除所得现金净额— (7)
其他投资，净额(10)— 
投资活动提供的净现金流量（使用）(10)6 
来自融资活动的现金流量
短期负债的净收益— 220 
发行长期债务证券所得906 646 
长期债务付款(913)(997)
递付给母公司(159)(685)
其他融资，净额1 (6)
筹集资金的净现金流量(165)(822)
汇率变动对现金、现金等价物及限制性现金的影响(12)(3)
期末现金及现金等价物减少(27)(522)
期初现金、现金等价物及限制性现金617 1,139 
期末现金，现金等价物和受限现金$590 $617 




附注是这些缩编合并基本报表的一部分。
施乐2024年第10-Q表格 10

施乐控股有限公司
施乐公司
简明综合财务报表注释（未经查核）
(以百万为单位，除每股数据和其他地方注明外)

注1 – 报告基础
「施乐控股」指的是施乐控股有限公司及其合并子公司，而「施乐」则指施乐公司及其合并子公司。在此提到的「我们」、「我们」、「我们的」和「公司」，除非情况另有暗示，否则合集指施乐控股和施乐。提到“施乐控股有限公司”的地方指的是独立的母公司，不包括其子公司。提到“施乐公司”的地方指的是独立公司，不包括其子公司。
附带的未经审核的Xerox Holdings和Xerox及所有直接或间接通过控制大部份股权或其他方式的各自的公司的基本财务报表和附注，代表了各自的合并结果和财务结果。这是Xerox Holdings和Xerox的结合报告，其中包括每位登记人的独立未经审核的基本财务报表。
施乐控股和施乐的附注未经审核的简明合并基本报表，是根据描述于《2023年联合年报形式10-k（2023年年报）》以及10-Q表格的中期报告要求中所述的会计政策编制的，除本文所述外。因此，按照美国通用会计原则（GAAP）编制的我们年度财务报表中通常包含的某些信息和附注披露已经被压缩或省略。您应该与《2023年年报》中包含的合并财务报表一起阅读这些简明合并基本报表。
在我们看来，对于所呈现的中期时段的财务状况、经营成果和现金流量的公允报告，所有必要的调整均已完成。这些调整包括一般性、经常性的项目。营运的中期结果未必代表整个年度的结果。
为方便及参考方便，我们将财务报表项目“（损失）所得额（未税前）”称为“税前（亏损）收入”。
为了符合当前年度的呈现方式，已对过去年度的金额进行了某些重新分类。
简明综合基本报表附注反映施乐控股及施乐在所有呈交期间的活动，除非另有说明。
商誉
定量损伤评估
我们至少每年在第四季评估商誉是否存在减损，并在事件或环境变化表明帐面价值可能无法收回时进行评估。在2024年第三季，我们辨识到需要对商誉进行定量评估的事件和状况，因为该季度的营运结果以及全年更新的预测低于先前的预测。此外，在2024年，公司股价和市值在第三季度出现了显著和持续的下跌。
完成我们的定量减损测试后，我们得出结论，印刷及其他报告部门（唯一具有商誉的报告部门）的估计公允价值已下跌至低于其摊销值，我们认列了一笔税后的非现金减损费用为$1,015 ($1,058 与我们2024年第三季度的商誉相关（税前），估计印刷及其他报告部门的公允价值是基于被认为是公平价值层次下的3级输入的估计和假设。
如果公司未来表现与当前预期、假设或估计有所不同，包括与利率期货相关的假设、产品和劳动成本的通胀压力、Reinvention的执行以及地缘政治不确定性，这可能会影响减损分析并可能降低用于估计公平价值的基本现金流，导致公平价值下降，可能引发未来减损费用。我们将继续监控2024年余下时间的发展，包括更新我们的预测以及我们的市值，未来可能需要更新我们的评估和相关估计。
施乐2024年第10-Q表格 11

评价准备
我们记录了资产和负债之间的税基及报告金额之间的暂时差异的估计未来税收影响，以及净营业亏损和税款抵免的带来。延迟课税资产的实现性得到评估，在我们运营的每个税务司法管辖区，都记录了一个估值准备金，将总延迟税收资产减少到一个更有可能在未来实现的金额。我们在评估这些延迟课税资产的实现性和任何估值准备金的需要时，采用了判断。在确定最有可能实现的延迟课税资产金额时，我们考虑了客观证据，包括历史盈利能力、预计未来应纳税收入、现有暂时差异逆转的预期时间以及税务策略。
由于2024年第三季度实际业绩低于预期，再加上全年业绩预期也低于预期，我们录得了约$的评估溢余退税资产。161 主要涉及非美国退税管辖区某些递延税资产，因我们认为这些递延税资产在营运日常过程中不太可能实现，故录得了约$的评估豁免。评估系基于2024年9月30日的可用正面和负面证据，包括递延税负债排程和来自营运活动的收入预测。截至2024年9月30日，我们的总递延税资产余额为$，扣除总评估豁免$。评定为可实现的净递延税资产金额，然而，若未来有更多客观信息可获，包括若收入或所得税率高于或低于当前估计，或者未来现有应纳税或可减免的暂时差异的逆转的时间或金额有所不同，该金额可能在短期内发生变动。635，其中包括$的总评估豁免。491，然而，视乎未来是否有更多客观资讯可用，包括所得或所得税率是否高于或低于当前估计，或者未来现有应纳税或可减免的暂时差异的逆转的时间或金额是否有所不同，那么视乎近期内会有变动。
施乐2024年第10-Q表格 12

注释2 – 最近会计宣告
施乐控股和施乐考虑财务会计准则委员会发布的所有会计标准更新（ASU）的适用性和影响。下面列出的ASU适用于所有登记人。未列出的ASU经评估后确定不适用于任一登记人的简明综合财务报表。
将采纳的会计准则更新：
参考利率改革
2020年3月，FASB发行了 ASU 2020-04, 参考利率改革（主题848），促进对金融报告受影响的参考利率改革的效应， 该标准提供了美国GAAP适用于因伦敦同业拆款利率（LIBOR）或其他预计将被停止使用的参考利率而受影响的合同、避险关系和其他交易的可选豁免和例外情况。 ASU 2021-01, 参考利率改革（主题848），范围， 为ASU 2020-04提供了澄清。这些ASU自2020年3月31日结束后到2022年12月31日生效。 在2022年12月，FASB发行了ASU 2022-06, 参考利率改革（主题848），延迟主题848的日落日期， 将主题848的日落日期从2022年12月31日延期至2024年12月31日，之后实体将不再被允许应用主题848中的减免。
迄今为止，采用这些ASUs对参考利率改革尚无实质影响。然而，我们持续评估可能因LIBOR或其他参考利率停用而导致的未来影响，以及本更新对我们的财务状况、营运结果和现金流量的会计处理。
分段披露
在2023年11月，FASB发布了一项旨在通过加强有关重要费用的披露要求来改善可报告段披露的控制项，该更新将要求公开实体披露定期向首席营运决策者（CODM）提供的重要部门费用，并纳入部门利润与损失中。修订将自2024年1月1日开始的公司年度期间生效，并自2025年1月1日开始的中间期间生效，允许提前采纳，并将适用于财务报表中呈现的所有过去期间进行追溯。由于这项ASU仅要求额外披露，因此采用该ASU将不会对公司的财务状况、营运结果或现金流量产生影响。 ASU 2023-07, 分节报告（TOPIC 280）：改进报告的分节披露1️⃣，旨在通过强化有关重要费用的披露要求来改善报告细分披露要求，主要是通过加强有关重要费用的披露来实现这一目的。更新将要求公开实体披露定期向首席营运决策者（CODM）提供的重要部门费用，并纳入部门利润与损失中。修订适用于公司自2024年1月1日开始的每年期间，以及自2025年1月1日开始的中期期间，允许提前采用，并将以追溯方式适用于财务报表中呈现的所有过去期间。由于这项ASU只需要额外的披露，采用此ASU将不会对公司的财务状况、营运结果或现金流量产生影响。
所得税揭示
2023年12月，FASB发布了第ASU 2023-09号公报，旨在改进有关公司所支付的所得税和有效税率调和表的披露。此次更新的指导将对上市公司从2024年12月15日之后开始的年报期间和2025年12月15日之后开始的中期周期产生影响。公司正在评估采用此指南对其未经审计的简明合并财务报表可能产生的潜在影响。 ASU 2023-09, 所得税（740主题）：所得税披露的改进包括进一步增强所得税披露的修订，主要通过标准化和按司法管辖区分解汇率调和类别和所得税支付。修订对公司2025年1月1日开始的年度期间生效，允许提前采纳，应适用于前瞻性或回顾性。 我们目前正在评估采用该标准对公司披露的影响。
最近采纳的会计标准更新：
负债
2022年9月，FASb发布了 ASU 2022-04, 负债-供应商融资计划（专题405-50）：披露供应商融资计划义务 要求使用供应商融资计划来购买商品和服务的实体披露这些计划的关键条款和报告期末未解除的义务的相关信息，包括这些义务的滚动资讯。该指引不影响供应商融资计划义务的确认、计量或财务报表呈现。新标准要求披露计划的关键条款和报告期末未解除的义务的细节自2023年1月1日开始的我们财政年度生效，而披露报告期末未解除的义务的滚动资讯则在2024年1月1日开始的我们年度报告生效。请参考附录12-补充财务信息以了解所需披露信息。
施乐2024年第10-Q表格 13

其他更新
在2024年，FASB还发布了以下ASUs，这可能会对公司未来产生影响，但目前对我们的财务状况、营运结果或现金流量没有实质影响。
•薪酬 - 股票薪酬： ASU 2024-01、薪酬 - 股票薪酬（主题718）- 利润利益和类似奖励的范畴应用。 此更新将于2024年12月15日后开始的年度以及在该期内的中期期间生效，并允许提前采用。
•编码改进： ASU 2024-02，编码改进 - 修订删除对概念声明的参考。 此更新将于2024年12月15日后开始的我们财政年度生效。
注释 3 – 营业收入
按照主要地理市场、主要产品系列和销售渠道进行细分的收入如下：
结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
2024202320242023
主要地理市场(1):
美国$861 $933 $2,544 $2,862 
欧洲440 457 1,352 1,428 
加拿大117 130 364 410 
其他110 132 348 421 
总收益$1,528 $1,652 $4,608 $5,121 
主要产品和服务项目：
设备$339 $386 $985 $1,197 
用品、纸张和其他销售(2)
249 258 737 802 
维护协议(3)
370 395 1,145 1,223 
服务安排(4)
454 482 1,394 1,476 
租赁和其他78 85 229 276 
融资38 46 118 147 
总收益$1,528 $1,652 $4,608 $5,121 
销售渠道：
直接设备租赁(5)
$195 $216 $520 $691 
分销商及经销商(6)
240 240 699 761 
客户直接153 188 503 547 
总销售额$588 $644 $1,722 $1,999 
_____________
(1)地理区域数据是基于报告营业收入的子公司所在地。
(2)其他销售包括与硬件相关的收入。
(3)包含从已销售的设备的维护协议收入，以及IT服务和通过我们的渠道合作伙伴出售的服务协议相关的收入。
(4)主要包括我们的印刷和数字服务外包安排所产生的收入，包括那些安排中的嵌入式营运租赁收入，但这些收入并不重要。
(5)主要反映通过捆绑租赁协议的销售。
(6)主要反映了我们通过双层分销渠道的销售。
合同资产和负债: 通常我们并没有合同资产，这些主要是与收入认列日期不同的有条件应收帐款。我们的合同负债主要是与已辨认收入的帐单超额相关，主要与预先帐单有关，用于将来执行的维护和其他服务，分别为2024年9月30日和2023年12月31日约为$119 15.1132 。在2024年9月30日的大部分余额将分摊至营业收入至下一个 30 月。
施乐2024年第10-Q表格 14

合同成本：
我们将以下合同成本纳入我们的营业收入安排中：
•获取合同的增量直接成本主要包括支付给销售人员和代理商的销售佣金，用于放置设备以及相关售后服务安排。这些成本会根据估计的合同期限采用直线分摊方式逐期化为销售开支，目前估计的合同期限约为 四年我们在客户续约时支付相应的销售佣金；因此，我们的摊销期限与我们最初的合同期限相一致。
•合约履行成本，指为满足未来履行义务所支出的资源和资产成本，这些成本按合同服务期间分摊至服务成本。
•合同诱因为因为在合同期间分摊并资本化，作为减少营业收入。
合同成本变动，净变化如下:
20242023
1月1日结余，$136 $135 
客户合同成本待支付15 16 
客户合同成本摊销(16)(16)
其他(1)
(1)(1)
3月31日结余，$134 $134 
客户合同成本待支付13 18 
客户合同成本摊销(16)(18)
6月30日结余，$131 $134 
客户合同成本延后17 16 
客户合同成本摊销(16)(17)
其他(1)
1 — 
截至9月30日的结余,$133 $133 
_____________
(1)包括货币。
在履行服务安排所使用的设备和软体，以及公司保留控制权的情况下，将被资本化并根据其有用寿命或合同期限中较短者进行折旧，如果资产是合同特定的。
施乐2024年第10-Q表格 15

附注四 - 本公司有两个报告部门，依照「企业和相关讯息部门的披露」的会计标准委员会（ASC）主题280：数据和数据分析服务以及IT人员供应服务。
我们的可报告业务部门 - 列印及其他并且 施乐金融服务（XFS） - 与首席营运决策者（CODM）、我们的首席执行官（CEO）如何分配资源并根据公司的关键增长策略评估绩效相一致，也与我们经营业务并看待所服务市场的方式一致。
我们的 列印及其他 本区间包括文件系统、耗材、技术服务和管理服务的销售。该区间还包括提供涉及一系列解决方案和服务的管理服务，帮助客户优化其印刷和通信基础设施，应用自动化和简化以最大程度提高生产力，并确保最高水平的安防。本区间还包括 数位和IT服务和软体。 产品分组的区间为:
•“进入”，包括 A4 装置和主要用于小型和中型工作组/工作团队的桌面打印机和多功能设备。
•「中级区间」包括一般用于大型工作组/工作团队环境的A3设备，以及服务于中央列印中心、收费列印以及低成交量生产列印机构的轻型生产产品群。
•“高端”其中包括生产印刷和出版系统，通常为图形通信市场和大型企业中心提供服务。
客户范围从中小型企业到大型企业。客户还包括图形通讯企业以及包括分销商和经销商在内的渠道合作伙伴。区间收入还包括从我们的施乐产品提供租赁融资独家权利的XFS区段的佣金和其他支付。这些收入被报告为内部区段收入的一部分，在合并收入中被消除。
辉瑞公司面临数起分开的诉讼，这些诉讼仍在进行中，需等待第三项索赔条款的裁决。2023年9月，我们与辉瑞公司同意合并2022和2023年的诉讼，并将审判日期从2024年11月推迟至2025年上半年，具体时间将由法院确定。 XFS 该部门提供全球货币租赁解决方案，目前通过捆绑租赁协议和租赁融资为直接渠道客户购买施乐解决方案提供租赁，亦为通过我们的间接渠道购买施乐解决方案的最终用户提供租赁。该部门的收入主要包括销售类型租赁（包括每月续租）的融资收入和租赁费用。该部门的收入还包括销售金融应收账款的收益/亏损，包括基础设备尾款的佣金、销售服务费和维修费。
Selected financial information for our reportable segments was as follows:
Three Months Ended September 30,
20242023
Print and OtherXFSTotalPrint and OtherXFSTotal
External revenue$1,440 $88 $1,528 $1,554 $98 $1,652 
Intersegment revenue(1)
17 — 17 21 — 21 
Total Segment revenue$1,457 $88 $1,545 $1,575 $98 $1,673 
Segment profit$67 $13 $80 $64 $4 $68 
Segment margin(2)
4.7 %14.8 %5.2 %4.1 %4.1 %4.1 %
Depreciation and amortization$49 $— $49 $51 $— $51 
Interest income— 38 38 — 46 46 
Interest expense— 26 26 — 30 30 
Xerox 2024 Form 10-Q 16

Nine Months Ended September 30,
20242023
Print and OtherXFSTotalPrint and OtherXFSTotal
External revenue$4,340 $268 $4,608 $4,820 $301 $5,121 
Intersegment revenue(1)
55 — 55 65 — 65 
Total Segment revenue$4,395 $268 $4,663 $4,885 $301 $5,186 
Segment profit$181 $17 $198 $271 $22 $293 
Segment margin(2)
4.2 %6.3 %4.3 %5.6 %7.3 %5.7 %
Depreciation and amortization$147 $— $147 $156 $— $156 
Interest income— 118 118 — 147 147 
Interest expense— 82 82 — 100 100 
_____________
(1)Intersegment revenue is primarily commissions and other payments made by the XFS Segment to the Print and Other Segment for the lease of Xerox equipment placements.
(2)Segment margin based on External revenue only.

Selected financial information for our reportable segments was as follows:
结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
2024202320242023
税前收益（损失）
总报告部门$80 $68 $198 $293 
商誉减损(1)
(1,058)— (1,058)— 
重组及相关成本，净额(56)(10)(107)(35)
营业无形资产摊销(10)(12)(30)(33)
剔除— — (51)— 
PARC 捐助— — — (132)
库存相关的影响-退出某些生产列印制造业务(2)
— — (44)— 
其他支出净额(43)18 (120)(33)
税前总收入（损失）$(1,087)$64 $(1,212)$60 
折旧和摊销
全部报告部门$49 $51 $147 $156 
营业无形资产摊销10 12 30 33 
折旧及摊销总额$59 $63 $177 $189 
利息费用
全部报告的部门$26 $30 $82 $100 
公司股份31 14 88 40 
总利息支出$57 $44 $170 $140 
利息收入
全部报告的部门$38 $46 $118 $147 
公司股份3 3 10 12 
总利息收入$41 $49 $128 $159 
_____________
(1)2024年第三季，我们认列了一笔经税后的非现金减损费用$。1,015 ($1,058 与我们印刷及其他报告单位相关之(税前）后果。请参阅附注1 - 报告基准获得额外资讯。
(2)反映了制造业某些生产印刷制造业务在2024年9月30日结束的三个月和九个月期间，库存约减少了$。0 15.138 以及由于在2024年9月30日结束的三个月和九个月期间退出某些生产印刷制造业务，取消了相关采购合同，约为$。0 15.16，由于在2024年9月30日结束的三个月和九个月期间退出了某些生产印刷制造业务，库存约减少了$，并取消了相关的采购合同。
施乐2024年第10-Q表格 17

备注5 - 出租人
销售型租赁的营业收入以毛额形式呈现，当公司进行租约以实现产品的价值，否则会在其正常业务过程中进行销售；而当公司进行租约以通过提供融资来产生营收时，在这样的交易中，如果有盈利或损失，则以净额方式呈现。此外，我们选择将从承租人收取的销售税和其他类似税项作为承租方成本来核算，因此我们将这些成本从合同考虑和变量考虑中排除，并呈现扣除这些成本后的收入。
租金收入的元件如下:
结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
损益表中的地点2024202320242023
销售型租赁的营业收入销售额$195 $216 $520 $691 
租赁应收款项的利息收入融资38 46 118 147 
租赁收入 - 经营租赁服务、维护和租赁41 40 126 120 
变动租金收入服务、维护和租赁9 9 32 42 
总租赁收入$283 $311 $796 $1,000 
在销售型租赁起始时的利润估计为$。56 15.179 ，分别为2024年和2023年9月30日结束的三个月，以及$163 15.1247 分别为2024年和2023年截至9月30日的九个月结束之租约。
注释6 – 分拆
阿根廷和智利的销售
2024年3月，施乐完成将在阿根廷和智利的直接业务转售给拉丁美洲技术和光纤网络服务供应商Datco集团的交易，总代价为$19所有权转移后，新公司将作为独立实体运营，Datco集团将继续提供服务于阿根廷和智利先前出售的施乐设备，并成为施乐在这些市场的独家合作伙伴。此交易与公司持续进行的重塑业务相符。
销售导致净亏损 资产51，其中包括 货币 货币 亏损 $40，配合好意 资产 $10，资产净值达 净资产 $18，以及相关费用 费用 $2。2024年第二季 我们记录了购买价格调整信用额 $3。 关于施乐 配合好意的分配 基于阿根廷和智利营运的相对公允价值对整个印刷和其他业务报告单元的总体公允价值，先前已纳入其中的。 阿根廷和智利营运的估计公允价值以及印刷和其他报告单元都是基于被认为是公允价值阶层下的三级输入的估计和假设。 施乐 亦记录了 一项税收利益 $相关于销售，导致销售后的税后净亏损 $19 。相关于销售，施乐 亦记录了 净利润 税收利益 $，导致销售的税后 净利润 亏损 $32阿根廷和智利子公司的销售预计不会对公司未来营运或现金流量的结果进行实质性影响。
施乐2024年第10-Q表格 18

注意 7 – 应收帐款净额
应收帐款净额如下:
九月三十日，
2024		12月31日，
2023
发票$701 $710 
应计(1)
191 204 
可疑帐款提存(71)(64)
应收帐款净额$821 $850 
_____________
(1)应收帐款包括未来季度将要开具的发票金额，这些发票是为提供当前服务而开立的。
应收帐款坏帐准备金如下所示:
20242023
1月1日结余st
$64 $52 
备用款6 3 
呆帐(3)(5)
复苏和其他(1)
(2)3 
3月31日结余st
$65 $53 
备用款5 6 
呆帐(3)(3)
收回及其他(1)
(1)2 
6月30日的余额th
$66 $58 
备用款8 5 
呆帐(5)(4)
收回及其他(1)
2 2 
九月三十日结存th
$71 $61 
_____________
(1)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.
We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for doubtful accounts receivable is determined based on an assessment of past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment the allowance for doubtful accounts as a percent of gross accounts receivable was 8.0% at September 30, 2024 and 7.0% at December 31, 2023.
Accounts Receivable Sales Arrangements
我们有 一年。 欧洲的设施让我们能够持续地无担保地卖出与我们经销网络相关的应收帐款。根据这项安排，我们将整个应收帐款的权益出售以换取现金，买方不会扣留或延迟任何支付。
应收帐款销售活动如下：
 结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
 2024202320242023
应收帐款销售(1)
$117 $103 $314 $277 
____________
(1)销售损失并不重要。
施乐2024年第10-Q表格 19

Note 8 – 净金融应收款项
金融应收账款包括从我们设备销售中产生的销售型租赁和分期付款贷款。这些应收账款通常以基础资产的安防利益作为抵押。
应收款项净额如下:
 九月三十日，
2024		12月31日，
2023
应收总额$2,289 $2,899 
未获收入(229)(297)
小计2,060 2,602 
残值— — 
可疑帐款提存(71)(92)
融资应收款，净额1,989 2,510 
减少：应收款项之融资部分，净额50 71 
减少：未列计之应收款项当期部分，净额664 842 
应收款项一年后到期部分，净额$1,275 $1,597 
金融应收款项 - 呆帐损失准备和信用质素
我们的应收账款组合主要集中在美国、加拿大和欧洲、中东和非洲地区。我们一般会根据国家或地理基础设定客户信贷额度并估计怀疑信贷损失的津贴。客户信贷额度基于对客户信用质量的初步评估，并根据对客户的持续信用评估（包括付款记录和信用质量变化）相应调整该额度。怀疑信用损失的津贴是根据对原始年度和过往收款经验的评估以及对当前和未来经济状况以及我们客户收款趋势变化的考虑而确定的。
根据该评估，不良信贷损失的赔偿金占总金融应收款项（未赚取的收入净额）的百分比为 3.4％于2024年9月30日，并且 3.5％于2023年12月31日。
我们对有疑虑的信贷损失的拨备金是根据地理区域有效确定的。我们财务应收帐款组合部门的风险特征通常与包含在这些地理区域中的国家/地区经济相关的风险因素保持一致。由于EMEA由多个国家和地区经济组成，因此该组合部门内的风险配置较为多元化，这是由于各国之间和各国内部的经济状况存在差异。
在确定所需的储备水准时，我们会对当前和预测的经济状况和趋势进行严格评估，以确保我们客观地考虑了这些预期影响因素以决定我们的储备。我们的评估还包括审查当前投资组合的信贷指标以及过去一年中发生的核销水准。我们相信我们目前的储备位置仍足以应对可能由目前和未来的宏观经济环境（包括通货膨胀、利率期货和地理区域的经济衰退）造成的预期未来损失。我们将继续监控未来经济状况和趋势的发展，因此，我们的储备可能需要在未来时期进行更新。
施乐2024年第10-Q表格 20

关于可疑信贷损失的计提以及相关的金融应收账款投资如下：
美国加拿大欧洲、中东和非洲总计
2023年12月31日余额
$58 $7 $27 $92 
备用款(3)5 6 8 
呆帐(7)(1)(4)(12)
复原和其他(1)
1 — (1)— 
2024年3月31日止结余$49 $11 $28 $88 
备用款— 1 4 5 
呆账(6)(5)(3)(14)
回收及其他(2)
— — — — 
2024年6月30日余额$43 $7 $29 $79 
备用款(5)5 1 1 
呆账(6)(1)(4)(11)
回收及其他(2)
— 1 1 2 
2024年9月30日结余$32 $12 $27 $71 
2022年12月31日结余
$83 $7 $27 $117 
备用款(15)— 3 (12)
核销(5)— (2)(7)
收回及其他(1)
2 — 1 3 
2023年3月31日结束余额$65 $7 $29 $101 
备用款5 1 3 9 
核销(4)(1)(4)(9)
回收款项和其他(2)
— 1 1 2 
2023年6月30日结余$66 $8 $29 $103 
备用款2 — 4 6 
核销(6)(1)(1)(8)
回收款项和其他(2)
— — (2)(2)
截至2023年9月30日的结余$62 $7 $30 $99 
共同评估应收款项是否受损
2024年9月30日(2)
$815 $238 $1,007 $2,060 
2023年9月30日，均未发行和流通(2)
$1,343 $244 $1,103 $2,690 
_____________
(1)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.
(2)Total Finance receivables exclude the allowance for credit losses of $71 and $99 at September 30, 2024 and 2023, respectively.
In the U.S., customers are further evaluated by class based on the type of lease origination. The primary categories are direct, which primarily includes leases originated directly with end-user customers through bundled lease arrangements, and indirect, which primarily includes leases originated through our XBS sales channel.
We evaluate our customers based on the following credit quality indicators:
•低信用风险： 此评级包括业务信用良好至优秀、资产质量良好且有能力履行财务义务的账户。这些客户不太容易受到经济环境变化或情况变化的不良影响。在正常情况下，此类客户的损失率通常低于 1%.
•平均信用风险： 此评级包括信用风险较高的账户，在不利的业务或经济状况下更容易损失。虽然我们在这类客户中遭受较高损失率，但我们认为这种风险在某种程度上被我们的租赁业务分布在大范围和多样客户基础之中所减轻。此外，我们透过这类租赁获得的较高回报通常能够大幅抵销较高的损失率。在正常情况下，这个类别的损失率通常在区间内。 2%。 5%.
施乐2024年第10-Q表格 21

•高信贷风险： 此等级包括具有边缘信贷风险的账户，以至客户的还款能力受损或可能受损。我们采用多种策略来降低风险，包括更高的利率、预付款、个人担保等乙太经典。此类别中的账户包括在租赁期间从租赁起初评估的低和普通信贷风险下降的客户。因此，本金和利息损失或客户违约的可能性较大。此类别中的损失率在正常情况下一般在区间内。 7%。 10%.
信用质量因数至少每年更新一次，或根据经济状况需更频繁，而任何特定客户的信用质量在投资组合寿命中可能会变化。
根据地理位置、原始年份和信用质量因数，我们财务应收帐款组合的详细资料如下：
 2024年9月30日
 20242023202220212020先前总计
融资
应收帐款
美国（直接）
低信用风险$73 $75 $38 $28 $14 $3 $231 
一般信用风险38 66 26 33 11 3 177 
信用风险高21 26 26 15 10 3 101 
总计 $132 $167 $90 $76 $35 $9 $509 
呆帐$— $— $1 $1 $1 $2 $5 
美国（间接）
信用风险低$39 $62 $33 $18 $6 $1 $159 
信用风险中等28 54 30 16 4 — 132 
信用风险高2 7 4 2 — — 15 
总计$69 $123 $67 $36 $10 $1 $306 
账面损失$— $5 $4 $4 $1 $4 $18 
加拿大
低信用风险$30 $35 $17 $9 $4 $1 $96 
一般信用风险31 49 27 12 4 1 124 
高信用风险5 5 3 3 2 — 18 
总计$66 $89 $47 $24 $10 $2 $238 
账面损失$— $5 $1 $— $— $— $6 
欧洲、中东和非洲
低信用风险$107 $202 $136 $68 $24 $6 $543 
一般信用风险66 165 114 46 18 6 415 
高信用风险7 18 13 7 3 1 49 
总计$180 $385 $263 $121 $45 $13 $1,007 
呆帐$1 $4 $4 $2 $— $— $11 
总融资应收款项
低信用风险$249 $374 $224 $123 $48 $11 $1,029 
一般信用风险163 334 197 107 37 10 848 
高信用风险35 56 46 27 15 4 183 
总计$447 $764 $467 $257 $100 $25 $2,060 
总计核销金额$1 $14 $10 $7 $2 $6 $40 
施乐2024年第10-Q表格 22


 2023年12月31日
 20232022202120202019先前总计
融资
应收帐款
美国（直接）
信用风险低$122 $51 $61 $43 $17 $3 $297 
信用风险一般104 35 49 23 9 2 222 
高风险信用34 36 25 22 6 3 126 
总计 $260 $122 $135 $88 $32 $8 $645 
呆帐$1 $1 $1 $1 $1 $2 $7 
美国（间接）
低风险信用$136 $77 $48 $22 $6 $— $289 
平均风险信用111 69 41 15 6 — 242 
高风险信用12 8 6 2 1 — 29 
总计$259 $154 $95 $39 $13 $— $560 
呆帐$4 $3 $3 $2 $2 $3 $17 
加拿大
信用风险低$45 $24 $16 $9 $4 $— $98 
平均信用风险63 36 18 12 6 — 135 
高信用风险6 5 4 5 1 1 22 
总计$114 $65 $38 $26 $11 $1 $255 
呆帐$— $— $— $2 $— $1 $3 
欧洲、中东和非洲
低信用风险$251 $182 $110 $48 $19 $6 $616 
一般信用风险192 148 73 36 17 3 469 
高信用风险19 16 11 7 4 — 57 
总计$462 $346 $194 $91 $40 $9 $1,142 
呆帐$3 $8 $4 $2 $— $— $17 
总财务应收款项
低信用风险$554 $334 $235 $122 $46 $9 $1,300 
一般信用风险470 288 181 86 38 5 1,068 
信用风险高71 65 46 36 12 4 234 
总计$1,095 $687 $462 $244 $96 $18 $2,602 
总核销$8 $12 $8 $7 $3 $6 $44 


Xerox 2024 Form 10-Q 23

The aging of our receivables portfolio is based upon the number of days an invoice is past due. Receivables that are more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance.
We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed probable.
The aging of our billed finance receivables is as follows:
 September 30, 2024
 Current
31-90
Days
Past Due
>90 Days
Past Due
Total BilledUnbilled
Total
Finance
Receivables
>90 Days
and
Accruing
Direct $18 $4 $5 $27 $482 $509 $38 
Indirect5 1 1 7 299 306 — 
Total United States23 5 6 34 781 815 38 
Canada6 1 2 9 229 238 12 
EMEA6 2 2 10 997 1,007 18 
Total$35 $8 $10 $53 $2,007 $2,060 $68 
 December 31, 2023
 Current
31-90
Days
Past Due
>90 Days
Past Due
Total BilledUnbilled
Total
Finance
Receivables
>90 Days
and
Accruing
Direct$24 $6 $5 $35 $610 $645 $41 
Indirect16 3 3 22 538 560 — 
Total United States40 9 8 57 1,148 1,205 41 
Canada6 1 1 8 247 255 10 
EMEA7 2 1 10 1,132 1,142 10 
Total$53 $12 $10 $75 $2,527 $2,602 $61 
Sales of Receivables
The Company has expanded the finance receivables funding agreement with an affiliate of HPS Investment Partners (HPS) pursuant to which the Company agreed to offer for sale, and HPS agreed to purchase, certain eligible pools of finance receivables, on a monthly basis, in transactions structured as "true sales at law," and bankruptcy remote transfers. We have received an opinion to that effect from outside legal counsel. Accordingly, the receivables sold are derecognized from our financial statements and HPS does not have recourse back to the Company for uncollectible receivables. In addition, the agreement provides for the sale of the underlying leased equipment to HPS, with the commission paid by HPS covering the value associated with the underlying equipment being sold to HPS. The Company retains a first right of refusal to repurchase the underlying equipment at the end of the lease term, to the extent offered for sale by HPS, at its then fair value.
In January 2024, we entered into a new agreement with HPS to transfer servicing of the majority of funding activity to HPS as well as extend the existing term to five years. This agreement automatically renews for a one year period unless terminated by either the Company or HPS. Xerox will be required to pay a specified fee to service the Company’s retained receivables. For the remaining funding activity, Xerox will continue to service the lease receivables for a specified fee.
In October 2024, the Company entered into a finance receivables funding agreement with De Lage Landen Financial Services Canada Inc. (DLL) to sell certain eligible pools of finance receivables. Refer to Note 22 - Subsequent Events for additional information related to this arrangement with DLL.
Xerox 2024 Form 10-Q 24

Finance receivable sales activity was as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Finance receivable sales - net proceeds(1)
$134 $206 $511 $848 
Gain on sale/Commissions(2)
5 5 19 16 
Servicing revenue(2)
$5 $2 $12 $5 
_____________
(1)Cash proceeds were reported in Net cash provided by operating activities.
(2)Recorded in Services, maintenance and rentals as Other Revenue. Amounts include revenues associated with the sale of the underlying leased equipment.
In addition to the sale activity above, in the second quarter 2024, we sold the finance receivable of an EMEA leasing subsidiary for net proceeds of $11.
Secured Borrowings and Collateral
We sold certain finance receivables to consolidated special purpose entities included in our Condensed Consolidated Balance Sheet as collateral for secured loans.
Refer to Note 13 - Debt for additional information related to these arrangements.
Note 9 – Inventories and Equipment on Operating Leases, Net
The following is a summary of Inventories by major category:
September 30,
2024		December 31,
2023
Finished goods$640 $528 
Work-in-process42 47 
Raw materials(1)
50 86 
Total Inventories$732 $661 
_____________
(1)Raw materials at September 30, 2024 reflects a reduction of approximately $38, related to the exit of certain production print manufacturing operations.
The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Condensed Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and similar arrangements consist of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term.
Equipment on operating leases and the related accumulated depreciation are as follows:
 September 30,
2024		December 31,
2023
Equipment on operating leases$991 $1,074 
Accumulated depreciation(736)(809)
Equipment on operating leases, net$255 $265 
Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $9 and $9 for the three months ended September 30, 2024 and 2023, respectively, and $32 and $42 for the nine months ended September 30, 2024 and 2023, respectively.
Xerox 2024 Form 10-Q 25

Note 10 – Lessee
Operating Leases
We have operating leases for real estate, vehicles and for certain equipment in our domestic and international operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to ten years and a variety of renewal and/or termination options.
The components of lease expense are as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Operating lease expense$18 $20 $53 $65 
Short-term lease expense3 4 11 12 
Variable lease expense(1)
15 12 42 38 
Sublease income(1)— (1)(1)
Total Lease expense$35 $36 $105 $114 
_____________
(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs, as well as taxes and insurance.
As of September 30, 2024, we had no material operating leases that had not yet commenced.
Operating lease ROU assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:
September 30,
2024		December 31,
2023
Other long-term assets$168 $172 
Accrued expenses and other current liabilities$39 $41 
Other long-term liabilities138 141 
Total Operating lease liabilities$177 $182 
Finance Leases
The net assets and the liabilities related to our finance leases were immaterial for all periods presented.
As of September 30, 2024, we had approximately $60 of financing leases for vehicles that had not yet commenced.
Xerox 2024 Form 10-Q 26

Note 11 – Restructuring Programs
In connection with our Reinvention and other transformative programs, we engage in restructuring actions in order to reduce our cost structure and realign it to the changing nature of our business. As part of our efforts to reduce costs, 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,
2024202320242023
Restructuring charges, net$46 $3 $56 $5 
Asset impairment charges, net— 8 24 20 
Related costs, net10 (1)27 10 
Total Restructuring and related costs, net$56 $10 $107 $35 
Restructuring Charges
Restructuring charges, net primarily relate to the Print and Other segment as amounts related to the Xerox Financial Services segment were immaterial for all periods presented. A summary of our restructuring program activity is as follows:
Severance and
Related Costs
Other Contractual Termination Costs(2)
Total
Balance at December 31, 2023$129 $— $129 
Provision9 — 9 
Reversals(4)— (4)
Net current period charges(1)
5 — 5 
Charges against reserve and currency(16)— (16)
Balance at March 31, 2024118 — 118 
Provision5 — 5 
Reversals— — — 
Net current period charges(1)
5 — 5 
Charges against reserve and currency(31)— (31)
Balance at June 30, 202492 — 92 
Provision46 — 46 
Reversals— — — 
Net current period charges(1)
46 — 46 
Charges against reserve and currency(11)— (11)
Balance at September 30, 2024$127 $— $127 
______________
(1)Represents net amount recognized within the Condensed Consolidated Statements of Income (Loss) for the period shown for restructuring charges. Reversals of prior charges primarily include net changes in estimated reserves from prior period initiatives.
(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs.
At September 30, 2024, we expect to pay $107 of the restructuring reserve over the next twelve months.
The following table summarizes the reconciliation to the Condensed Consolidated Statements of Cash Flows:
 Nine Months Ended
September 30,
 20242023
Restructuring cash payments$(58)$(23)
Effects of foreign currency and other non-cash items— (1)
Charges against reserve and currency$(58)$(24)
Xerox 2024 Form 10-Q 27

Asset Impairment Charges
Charges associated with asset impairments represent the write-down of the related assets to their new cost basis. Impairments are net of any potential sublease income or other recovery amounts. Charges incurred during 2024 includes impairments associated with strategic actions taken as a result of the Company's Project Reinvention, including geographic simplification.
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Asset impairments(1)
$1 $11 $27 $23 
Adjustments/Reversals(1)(3)(3)(3)
Net asset impairment charge$— $8 $24 $20 
_____________
(1)Includes charges associated with strategic actions taken as a result of the Company's Reinvention, including geographic simplification.
Related Costs
In connection with our restructuring programs, we also incurred certain related costs as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Retention related severance/bonuses(1)
$— $(1)$(2)$— 
Consulting and other costs(2)
10 — 29 10 
Total$10 $(1)$27 $10 
_____________
(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum retention period before termination. The credits in 2024 and 2023 reflect a change in estimate.
(2)Represents professional support services associated with our business transformation initiatives.

Cash paid for restructuring related costs were $29 and $12 for the nine months ended September 30, 2024 and 2023, respectively. The restructuring related costs reserve was $5 and $8 at September 30, 2024 and December 31, 2023, respectively. The balance at September 30, 2024 is expected to be paid over the next twelve months.
Note 12 – Supplementary Financial Information
Cash, Cash Equivalents and Restricted Cash
Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation as well as cash collections on finance receivables that were pledged for secured borrowings. As more fully discussed in Note 21 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the 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,
2024		December 31,
2023
Cash and cash equivalents$521 $519 
Restricted cash
    Litigation deposits in Brazil24 27 
    Escrow and cash collections related to secured borrowing arrangements and receivable sales(1)
22 49 
    Other restricted cash23 22 
    Total Restricted cash69 98 
Cash, cash equivalents and restricted cash$590 $617 
_____________
(1)Includes collections on finance receivables pledged for secured borrowings or receivables sold that will be remitted to lenders in the following month.
Xerox 2024 Form 10-Q 28

Restricted cash is reported in the Condensed Consolidated Balance Sheets as follows:
September 30,
2024		December 31,
2023
Other current assets$43 $70 
Other long-term assets26 28 
Total Restricted cash$69 $98 
Supplemental Cash Flow Information
Summarized cash flow information is as follows:
Location in Statement of Cash FlowsNine Months Ended
September 30,
Source/(Use)20242023
Provision for receivablesOperating$36 $23 
Provision for inventoryOperating56 14 
Depreciation of buildings and equipmentOperating41 45 
Depreciation and obsolescence of equipment on operating leasesOperating86 83 
Amortization of internal use softwareOperating20 28 
Amortization of acquired intangible assetsOperating30 33 
Amortization of patents(1)
Operating7 7 
Amortization of customer contract costs(2)
Operating48 51 
Cost of additions to land, buildings and equipmentInvesting(22)(21)
Cost of additions to internal use softwareInvesting(5)(6)
Payments to acquire noncontrolling interests - Xerox HoldingsInvesting(27)(3)
Common stock dividends - Xerox HoldingsFinancing(96)(120)
Preferred stock dividends - Xerox HoldingsFinancing(11)(11)
Payments to noncontrolling interestsFinancing(1)(2)
Repurchases related to stock-based compensation - Xerox HoldingsFinancing(10)(7)
_____________
(1)Amortization of patents is reported in Decrease (increase) in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows.
(2)Amortization of customer contract costs is reported in Decrease (increase) 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.
Supplier Finance Program
The Company has 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 the Company receives invoices associated with those vendors and suppliers participating in the program and confirms and validates those invoices and amounts due before passing the invoices on to the financial institution for early payment at a discounted amount. The financial institution subsequently invoices the Company 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 the Company paying its supplier and vendor invoices consistent with their original terms. This program is generally available to all non-inventory vendors and suppliers. Spending associated with our supplier finance program was approximately $25 and $30 during the three months ended September 30, 2024 and 2023, respectively, and was approximately $85 and $90 during the nine months ended September 30, 2024 and 2023 respectively. The amount due to vendors and suppliers participating in this program was approximately $20 and $40 as of September 30, 2024 and December 31, 2023, respectively.
Xerox 2024 Form 10-Q 29

Note 13 – Debt
Revolving Credit Facility
In June 2024, Xerox Corporation, as borrower, and its parent company, Xerox Holdings Corporation, entered into Amendment No. 2 to Credit Agreement (the Amendment) with Citibank, N.A., as administrative agent and collateral agent (the Agent), and the lenders party thereto. The Amendment amended the Credit Agreement, dated as of May 22, 2023 (as previously amended, the ABL Credit Agreement), to (i) increase the commitments of the lenders under the ABL Credit Agreement from $300 to $425 and (ii) amend the excess availability used to trigger the fixed charge coverage ratio springing covenant from an amount equal to the greater of (A) $22.5 and (B) 10% of the Line Cap (the lesser of the aggregate amount of Revolving Commitments and the then-applicable Borrowing Base), to an amount equal to the greater of (A) $31.875 and (B) 10% of the Line Cap.
Xerox Corporation’s borrowings under the ABL Credit Agreement are supported by a first-priority security interests in substantially all of the working capital assets of Xerox Corporation, Xerox Holdings Corporation, and such U.S., Canadian and English subsidiaries (subject to certain exceptions and limitations set forth in the ABL Credit Agreement) and a second-priority security interest in all assets of Xerox Corporation, Xerox Holdings Corporation and such U.S., Canadian and English subsidiaries (subject to certain exceptions and limitations set forth in the ABL Credit Agreement), and all finance lease receivables of such German and Belgian subsidiaries.
At September 30, 2024, there were no borrowings under the ABL Facility, and no letters of credits were issued under the facility.
Senior Notes
In March 2024, Xerox Holdings Corporation issued $500 of 8.875% Senior Notes due in 2029 (the 2029 Notes) at par, resulting in net proceeds (after fees and expenses) of approximately $495. The 2029 Notes are senior unsecured obligations of Xerox Holdings Corporation and are fully and unconditionally guaranteed on a senior unsecured basis by Xerox Corporation and Xerox Business Services, LLC, as well as certain other wholly owned domestic restricted subsidiaries of the Company. The 2029 Notes and the related guarantees were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
Interest is payable semi-annually in arrears on May 30th and November 30th of each year, beginning on November 30, 2024. Xerox Holdings Corporation may, at its option, redeem some or all of the 2029 Notes, at varying prices based on the timing of the redemption. The indenture governing the 2029 Notes contains covenants that, among other things, limit the ability of Xerox Holdings Corporation and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other restricted payments, prepay, redeem or repurchase certain subordinated debt, issue certain preferred stock or similar equity securities, make loans and investments, sell or otherwise dispose of assets, incur liens, enter into transactions with affiliates, enter into agreements restricting its subsidiaries’ ability to pay dividends, and consolidate, merge or sell all or substantially all assets. Additionally, if Xerox Holdings Corporation experiences a Change of Control Triggering Event (as defined in the indenture governing the 2029 Notes), Xerox Holdings Corporation is required to offer to repurchase the 2029 Notes at 101% of the principal amount of such notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.
Debt issuance costs of approximately $5 were paid and deferred in connection with the issuance of the 2029 Notes, and will be amortized over the term of the 2029 Notes. Refer to the Use of Aggregate Proceeds from Senior Notes section below for additional information regarding the use of net proceeds.
Convertible Senior Notes and Capped Call
Convertible Senior Notes
In March 2024, Xerox Holdings Corporation issued an aggregate $400 of 3.75% Convertible Senior Notes due in 2030 (the 2030 Notes). The 2030 Notes are senior unsecured obligations of Xerox Holdings Corporation and are fully and unconditionally guaranteed by Xerox Corporation and Xerox Business Solutions, LLC. The 2030 Notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. Interest is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024, and will mature on March 15, 2030, unless earlier converted, redeemed or repurchased. The net proceeds from this offering were approximately $390, after deducting the debt issuance costs. Debt issuance costs of approximately $10 were paid and deferred in connection with the issuance of the 2030 Notes, and will be amortized over the term of the 2030 Notes. Refer to the Use of Aggregate Proceeds from Senior Notes section below for additional information regarding the use of net proceeds.
Xerox 2024 Form 10-Q 30

2030 年债券持有人只能在下列情况下，在 2029 年 12 月 15 日前营业日结束前任何时间按自己的期权转换债券：(i) 在截至 2024 年 3 月 31 日的日历季度后开始的任何日历季度（并仅在该日历季度内），如本公司普通股的最后一次报告出售价格至少为止 20 在期间内的交易日（不论是否连续） 30 连续交易日结束（包括在前一个月历季度的最后一个交易日）大于或等于 130每个适用交易日的兑换价格的百分比；(ii) 在 五 任何后连续交易日期间 十 根据 2030 年债券持有人或持有人的要求确定，根据 2030 年债券持有人或持有人的要求而确定的 2030 年债券每 1,000 美元本金额的交易价格（根据 2030 年债券的契约决定）的连续交易日期间（指定）低于 98本公司普通股上次报告售价之产品的百分比及每个交易日适用的兑换率；(iii) 如公司要求任何或全部 2030 年债券赎回，但仅对于已被征收（或被视为已被认为）赎回之债券；(iv) 如公司选择向全部或大部分普通股持有人分配任何权利、期权或认股权证（除外）持股东权利计划）授权他们，期限不超过 45 自该等派发声明日起计算日起，以每股价低于上次报告普通股的平均价格认购或购买公司普通股股份的股份 十 连续交易日期截止，包括该等分配或分发给所有普通股持有人或主要全部持有人、本公司资产、债务证券或购买本公司证券的权利之申报日前的交易日期。该股分配的每股价值由本公司董事会或其委员会合理决定，超过 10本公司普通股在发布之申报日前交易日之交易日之上次报告售价的百分比；或 (v) 发生指定企业事件时（根据 2030 年债券的契约确定）。在 2029 年 12 月 15 日或之后，直到期日之前的第二个预定交易日结束为止，持有人可根据持有人的选择，无论上述情况如何，将其 2030 年债券的全部或任何部份转换成 1,000 美元本金额的倍数。
截至2024年9月30日，尚未达成允许2030票据持有人提前转换其票据的条件。因此，2030票据被归类为长期债务。
最初的换股比率是每1,000美元票面金额的普通股可换取47.9904股，相当于约每股1美元的初始换股价。20.84 每股普通股的换股比率将在特定情况下进行调整。在某些公司事件或如果公司发布赎回通知时，将在特定情况下为选择在该公司事件或在相关赎回期间内换股的持有人增加换股比率。
2030年票据转换后，公司必须支付相当于要转换的票据总本金金额的现金，并根据公司的选择，在超出被转换票据总本金金额的情况下，支付或交付相应部分的现金、公司普通股股份，或现金和公司普通股股份的组合。
我们可能在2027年9月20日之前无法赎回票据。公司可以自选择于2027年9月20日或之后，如公司普通股的最后报价至少达到 130如果我们的普通股的最后报告销售价格在至少任何 20 任何 30 连续交易日期间（包括该期间的最后交易日）截止至，并包括，公司提供赎回通知前一交易日，以赎回价格等于票据本金金额的 100%，加上应占但未支付的利息，至但不含赎回日期。票据不设赎回基金。
如果公司发生基本变更（定义于管理2030票据的契约中），持有人可能要求公司以基本变更回购价现金回购其2030票据的全部或任何部分，回购价格为 100％的票据本金金额，加上应还未支付的利息至基本变更回购日，但不包括该基本变更回购日。
2030年信托契约包括惯例规定，列明特定违约事件后该票据可立即宣布到期并应兑付，并简述公司涉及的特定类型破产或清偿违约事件后该票据将自动到期并应兑付。
施乐2024年第10-Q表格 31

2030年债券的契约文件并未包含任何财务或营运盟约，亦无限制我们或任何子公司支付分红、承诺负债或发行或回购证券。
Capped Calls
就发行2030年票据（见上文）事宜，公司已与2030年票据的初始认购人或其各自联属方（期权交易对方）进行了私下谈判的顶部看涨交易（看涨交易），成本约为$ 可转换 优先票据 。这些顶部看涨交易涵盖了公司普通股初始预期底下的2030年票据数量，并会根据防稀释调整进行。透过参与顶部看涨交易，我们预期可以降低对公司普通股的潜在稀释（或者，在发生2030年票据转换结算为现金情况下，减少我们的现金支付义务），即在2030年票据转换时，我们普通股价格高于2030年票据转换价格的情况下。23。
施乐帽式认购权初步的售价约为$28.34 每股，较我们普通股在2024年3月6日纳斯达克证券交易所的报价高出 70%，报价为每股$16.67 ，施乐帽式认购权纳入2024年9月30日的简明综合账户负债表的附加实收资本中，且在后续期间不予重新评估，因符合股权分类的条件。关于帽式认购权的更多信息，请参见施乐控股的股东权益第17条款。
Use of Aggregate Proceeds from Senior Notes
A portion of the aggregate net proceeds from the Senior Note offerings was used to fund the cost of entering into the Capped Call transactions (see Convertible Senior Notes above). Additionally, a portion of the aggregate net proceeds were used to repay, through a tender offer for Senior Notes, approximately $84 of the 3.80% Xerox Corporation Senior Notes due in 2024 and approximately $362 of the 5.00% Xerox Holdings Corporation Senior Notes due in 2025. The remaining outstanding 3.80% Senior Notes that were not redeemed as part of the Senior Notes tender offer were repaid in May 2024. In connection with the repayment of the 2024 and 2025 Senior Notes, we recorded a gain on the extinguishment of the debt of approximately $4, which was partially offset by a loss of approximately $1 on the write-off of deferred debt issuance costs. The net gain on the extinguishment of $3 was recorded in Other expenses, net.
Xerox Holdings Corporation/Xerox Corporation Intercompany Loan
In the first quarter 2024, Xerox Holdings Corporation and Xerox Corporation entered into two intercompany loan agreements which mirror the terms of Xerox Holdings Corporation’s 2029 and 2030 Senior Notes, including principal, interest rates, payment dates and debt issuance costs of approximately $15 (see the Senior Notes and the Convertible Senior Notes sections above). As a result, Xerox Corporation recorded approximately $900 of Related party debt. The proceeds of the intercompany loan were used to pay down approximately $362 on the existing 2020 intercompany loan made by Xerox Holdings Corporation to Xerox Corporation.
At September 30, 2024 and December 31, 2023, the balance of the Xerox Holdings Corporation Intercompany Loan reported in Xerox Corporation’s Condensed Consolidated Balance Sheet was $2,021 and $1,497, respectively, which is net of related debt issuance costs, and the intercompany interest payable was $32 and $30, respectively.
Secured Borrowings and Collateral
We have entered into secured loan agreements with various financial institutions where we sold finance receivables and rights to payments under our equipment on operating leases. In certain transactions, the sales were made to special purpose entities (SPEs), owned and controlled by Xerox where the SPEs funded the purchase through amortizing secured loans from the financial institutions. The loans have variable interest rates and expected lives of approximately 2.5 years, with half projected to be repaid within the first year based on collections of the underlying portfolio of receivables. For certain loans, we entered into interest rate hedge agreements to either fix or cap the interest rate over the life of the loan.
将应收款项出售给特别目的实体被结构为「法定上的真正沽售」，我们已经从外部法律顾问得到相应意见。然而这些交易在我们的基本报表中被计入为有担保的借款，因为我们完全合并了特别目的实体。因此，特别目的实体的资产无法用于满足我们的其他义务。相反，这些特别目的实体的信用持有人无法向公司的一般信用索偿。
施乐2024年第10-Q表格 32

以下是施乐子公司持有的资产和负债，这些资产和负债已纳入我们的总体资产负债表。
2024年9月30日
净金融应收款项(1)
营运租赁设备净额
有抵押债务(2)
利率(3)
预计到期日
加拿大(4)
2023年7月(5)
$62 $— $49 5.73 %2026
法国
2023年11月166— 995.04 %2026
总计$228 $— $148 
2023年12月31日
净金融应收款项(1)
已租借的设备净值
有抵押债务(2)
利率(3)
预期到期日
美国。(4)
2022年1月(6)
$209 $— $77 6.82 %2024
2021年9月(6)
892256.76 %2024
总美国298 2102
加拿大(4)
2023年7月86— 776.74 %2026
法国
2023年11月235— 1825.42 %2026
总计$619 $2 $361 
_____________
(1)包括（i）应收款项净额的开票部分（ii）净金融资产（iii）截至2024年9月30日及2023年12月31日在简明合并资产负债表中包含的一年后到期的净金融资产。
(2)代表主要债务余额，不包括2024年9月30日和2023年12月31日发行成本的债务。0 15.11 截至2024年9月30日和2023年12月31日。
(3)代表预先对冲利率。有关这些借款对冲的补充资讯，请参阅附注14 - 金融工具。
(4)由特殊目的实体持有的资产和负债。
(5)在2024年10月与De Lage Landen Financial Services Canada Inc. (DLL) 签订新的应收款项销售协议前，这项抵押债务的余额已偿还。有关我们与DLL的安排的详细信息，请参阅第22条后续事项。
(6)在2024年第二季度，我们偿还了这些抵押贷款的余额。
利息支出和收入
利息费用和收入如下：
结束于三个月的期间
九月三十日，		九个月结束了
九月三十日，
2024202320242023
利息费用(1)(2)
$57 $44 $170 $140 
利息收入(3)
41 49 128 159 
____________
(1)包括在综合损益汇总财务状况表的其他费用中的融资成本以及非融资利息费用。
(2)Xerox公司的利息支出包括与Xerox Holdings Corporation / Xerox Corporation之间的公司内部贷款有关的利息支出，金额为$30 15.120 ，分别为2024年和2023年9月30日结束的三个月，以及$81 15.159 分别为2024年和2023年截至9月30日的九个月结束之租约。
(3)包括财务收入以及计入综合损益表中其他费用净额的其他利息收入。
施乐2024年第10-Q表格 33

第14条注释 - 金融工具
利率风险管理
我们使用利率掉期和利率上限协议来管理我们的利率风险并实现变动和固定利率债务的期望比例。这些衍生品可能被指定为 公平价值避险 或 现金流量避险 或者根据进行避险的风险性质，被指定避险或非指定避险。我们在2024年和2023年截至9月30日的三个月和九个月中均没有公平价值避险。
现金流量避险
我们使用利率互换和上限来管理对我们金融应收贷款的利率支付变动的风险。利率互换将某些贷款的支付利率转换为固定金额，而上限则限制了支付的最大利息金额。
在2024年第一季度，以下衍生工具被指定为现金流量避险。 这些现金流量避险的合理价值净额，并不重要，已记录在累计其他综合亏损中，然后重新分类至收入。
Secured BorrowingDerivative Type
Notional Amount
CanadaSwap$49 
FranceCap62 
FranceCap44 
Total$155 
In September 2024, we entered into two floating-to-fixed interest rate swaps to hedge against interest rate volatility associated with our Term Loan B Credit Agreement (TLB), which had an outstanding principal balance of $529 as of September 30, 2024. The following is a summary of our swaps at September 30, 2024:
CounterpartyDerivative Type
Principal Debt
Notional Amount
Expected Maturity
Fixed Rate Paid
Floating Rate Received
Net Fair Value
MizuhoSwap$175 $175 20273.271 %5.247 %$— 
Credit Agricole Swap125 125 20273.276 %5.247 %— 
Total$300 $300 $— 
The remaining portion of the TLB of $229 is not hedged, and is subject to interest rate fluctuations. The impact of these interest rate swaps on interest expense was not material for the three months ended September 30, 2024.
Foreign Exchange Risk Management
We are a global company and we are exposed to foreign currency exchange rate fluctuations in the normal course of our business. As a part of our foreign exchange risk management strategy, we use derivative instruments, primarily forward contracts and purchased option contracts, to hedge the following foreign currency exposures, thereby reducing volatility of earnings or protecting fair values of assets and liabilities:
•Foreign currency-denominated assets and liabilities
•Forecasted purchases and sales in foreign currency
At September 30, 2024 and December 31, 2023, we had outstanding forward exchange and purchased option contracts with gross notional values of $869 and $1,396 respectively, with terms of less than 12 months. The decrease in the notional value amount is largely due to a decrease in our YEN exposures as a result of a change in the currency terms included in a supplier inventory contract. At September 30, 2024, approximately 84% of the contracts mature within three months, 14% mature in three to six months and 2% in six to twelve months.
Foreign Currency Cash Flow Hedges
We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. The amount of ineffectiveness recorded in the Condensed Consolidated Statements of Income (Loss) for these designated cash flow hedges was not material for the nine months ended September 30, 2024 and 2023, respectively. The net asset (liability) fair value of these contracts was $1 and $(2) as of September 30, 2024 and December 31, 2023, respectively.
Xerox 2024 Form 10-Q 34

Summary of Derivative Instruments Gains (Losses)
Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains (losses).
Designated Derivative Instruments Gains (Losses)
The following table provides a summary of gains (losses) on derivative instruments in cash flow hedging relationships:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Derivative Gain (Loss) Recognized in OCI (Effective Portion)
Foreign exchange contracts - forwards and options$5 $(2)$(3)$(17)
Location of Derivative Losses (Gains) Reclassified from AOCL to Income (Effective Portion)
Cost of sales$— $(4)$(8)$(18)
Interest expense(1)1 — 3 
Total$(1)$(3)$(8)$(15)
As of September 30, 2024, a net after-tax gain of $2 was recorded in Accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into Net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.
Non-Designated Derivative Instruments Gains (Losses)
Non-designated derivative instruments are primarily instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges since there is a natural offset for the remeasurement of the underlying foreign currency-denominated asset or liability. The net (liability) asset fair value of these contracts was $(2) and $5 as of September 30, 2024 and December 31, 2023, respectively.
The following table provides a summary of gains and (losses) on non-designated derivative instruments:
Derivatives NOT Designated as Hedging InstrumentsLocation of Derivative (Loss) GainThree Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Foreign exchange contracts – forwardsOther expenses, net – Currency (losses) gains, net$(1)$8 $(15)$(25)
Currency losses, net were $2 and $6 for the three months ended September 30, 2024 and 2023, respectively, and $15 and $22 for nine months ended September 30, 2024 and 2023, respectively. Net currency gains and losses include the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives as well as the remeasurement of foreign currency-denominated assets and liabilities and are included in Other expenses, net.
Xerox 2024 Form 10-Q 35

Note 15 – Fair Value of Financial Assets and Liabilities
The following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. 
September 30,
2024		December 31,
2023
Assets
Derivatives$4 $11 
Deferred compensation plan investments in mutual funds14 14 
Total$18 $25 
Liabilities
Derivatives$5 $8 
Deferred compensation plan liabilities13 13 
Total$18 $21 
We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2.
Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections.
Summary of Other Financial Assets and Liabilities
The estimated fair values of our other financial assets and liabilities were as follows:
 September 30, 2024December 31, 2023
 
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Cash and cash equivalents$521 $521 $519 $519 
Accounts receivable, net821 821 850 850 
Short-term debt and current portion of long-term debt519 519 567 567 
Long-term Debt
Xerox Holdings Corporation1,633 1,413 1,497 1,410 
Xerox Corporation1,079 942 1,096 1,023 
Xerox - Other Subsidiaries(1)
40 40 117 117 
Long-term debt$2,752 $2,395 $2,710 $2,550 
____________
(1)Represents subsidiaries of Xerox Corporation
The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short-term debt, including the current portion of long-term debt, and Long-term debt was estimated based on the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.
Xerox 2024 Form 10-Q 36

Note 16 – Employee Benefit Plans
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:
Three Months Ended September 30,
 Pension Benefits
U.S. PlansNon-U.S. PlansRetiree Health
Components of Net Periodic Benefit Costs:202420232024202320242023
Service cost$— $— $2 $1 $— $1 
Interest cost27 28 46 47 2 2 
Expected return on plan assets(23)(24)(49)(55)— — 
Recognized net actuarial loss (gain)4 4 16 3 (3)(3)
Amortization of prior service cost (credit)— — 2 2 (4)(4)
Recognized settlement loss7 4 — — — — 
Defined benefit plans15 12 17 (2)(5)(4)
Defined contribution plans4 5 6 4 n/an/a
Net Periodic Benefit Cost (Credit)19 17 23 2 (5)(4)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial gain(1)
(15)(30)— (1)— — 
Prior service cost— — — — — — 
Amortization of net actuarial (loss) gain(11)(8)(15)(3)3 3 
Amortization of net prior service (cost) credit— — (2)(2)4 4 
Total Recognized in Other Comprehensive Income (Loss)(2)
(26)(38)(17)(6)7 7 
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income (Loss)$(7)$(21)$6 $(4)$2 $3 
Nine Months Ended September 30,
Pension Benefits
U.S. PlansNon-U.S. PlansRetiree Health
Components of Net Periodic Benefit Costs:202420232024202320242023
Service cost$— $— $4 $3 $— $1 
Interest cost82 82 136 140 6 7 
Expected return on plan assets(69)(73)(145)(162)— — 
Recognized net actuarial loss (gain)14 11 47 8 (9)(9)
Amortization of prior service cost (credit)— — 6 5 (11)(11)
Recognized settlement loss17 16 — — — — 
Defined benefit plans44 36 48 (6)(14)(12)
Defined contribution plans12 14 17 14 n/an/a
Net Periodic Benefit Cost (Credit)56 50 65 8 (14)(12)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
Net actuarial (gain) loss(1)
(9)7 — (49)(1)(5)
Prior service cost— — — 36 — — 
Amortization of net actuarial (loss) gain(31)(27)(46)(8)9 9 
Amortization of prior service (cost) credit— — (6)(5)11 11 
Total Recognized in Other Comprehensive Income (Loss)(2)
(40)(20)(52)(26)19 15 
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income$16 $30 $13 $(18)$5 $3 
_____________
(1)The net actuarial (gain) loss for U.S. Pension Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements and (ii) adjustments for the actuarial valuation results based on the January 1st plan census data. The 2023 non-U.S. net actuarial gain reflects remeasurements related to the Pension Plan amendments in the U.K. in second quarter 2023. The Retiree Health plan's net actuarial gain reflects adjustments for the actuarial valuation results based on the January 1st plan census data.
(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 19 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.
Xerox 2024 Form 10-Q 37

Pension Plan Amendment
In January 2024, the pension board of our Netherlands benefit pension plan transferred the plan’s assets and projected benefit obligation (PBO) to a single general pension fund. In addition to the transition, the indexation target was increased from 75% of price inflation to 100% of price inflation. This plan amendment resulted in an increase of approximately $47 (approximately EUR 44 million) in the PBO for this Collective Defined Contribution (CDC) plan, approximately 6% of the plan PBO as of December 31, 2023. From a Company risk perspective, this CDC plan operates just like a frozen defined contribution plan. Although the Company's risk has been mitigated, under U.S. GAAP this CDC plan does not meet the definition of a defined contribution plan and therefore continues to be accounted for as a defined benefit plan.
Contributions
The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans:
Nine Months Ended
September 30,		Year Ended
December 31,
20242023
Estimated 2024
2023
U.S. plans$83 $43 $100 $53 
Non-U.S. plans20 20 30 28 
Total Pension plans103 63 130 81 
Retiree Health11 12 20 21 
Total Retirement plans$114 $75 $150 $102 
Approximately $77 of the estimated 2024 contributions for our U.S. plans are for our tax-qualified defined benefit plans.
Xerox 2024 Form 10-Q 38

Note 17 – Shareholders’ Equity of Xerox Holdings
(shares in thousands)
The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.
Common
Stock(1)
Additional Paid-in CapitalTreasury StockRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon-controlling Interests
Total
Equity
Balance at June 30, 2024$124 $1,114 $— $4,810 $(3,687)$2,361 $4 $2,365 
Comprehensive (loss) income, net— — — (1,205)173 (1,032)— (1,032)
Cash dividends declared - common(3)
— — — (31)— (31)— (31)
Cash dividends declared - preferred(4)
— — — (4)— (4)— (4)
Stock option and incentive plans, net— 9 — — — 9 — 9 
Balance at September 30, 2024$124 $1,123 $— $3,570 $(3,514)$1,303 $4 $1,307 

Common
Stock(1)
Additional Paid-in CapitalTreasury StockRetained Earnings
AOCL(2)
Xerox Holdings Shareholders’ EquityNon- controlling Interests
Total
Equity
Balance at June 30, 2023$157 $1,607 $— $5,057 $(3,437)$3,384 $8 $3,392 
Comprehensive income (loss), net— — — 49 (67)(18)— (18)
Cash dividends declared - common(3)
— — — (32)— (32)— (32)
Cash dividends declared - preferred(4)
— — — (4)— (4)— (4)
Stock option and incentive plans, net— 12 — — — 12 — 12 
Payments to acquire treasury stock, including fees— — (553)— — (553)— (553)
Transactions with noncontrolling interests— — — — — — 1 1 
Balance at September 30, 2023$157 $1,619 $(553)$5,070 $(3,504)$2,789 $9 $2,798 
Common
Stock(1)
Additional
Paid-in
Capital
Treasury Stock
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-controlling
Interests
Total
Equity
Balance at December 31, 2023$123 $1,114 $— $4,977 $(3,676)$2,538 $10 $2,548 
Comprehensive (loss) income, net— — — (1,300)162 (1,138)— (1,138)
Cash dividends declared - common(3)
— — — (96)— (96)— (96)
Cash dividends declared - preferred(4)
— — — (11)— (11)— (11)
Purchases of capped calls(5)
— (17)— — — (17)— (17)
Stock option and incentive plans, net1 26 — — — 27 — 27 
Transactions with noncontrolling interests— — — — — — (5)(5)
Distributions to noncontrolling interests— — — — — — (1)(1)
Balance at September 30, 2024
$124 $1,123 $— $3,570 $(3,514)$1,303 $4 $1,307 
Xerox 2024 Form 10-Q 39

Common
Stock(1)
Additional
Paid-in
Capital
Treasury Stock
Retained
Earnings
AOCL(2)
Xerox Holdings
Shareholders’
Equity
Non-
controlling
Interests
Total
Equity
Balance at December 31, 2022$156 $1,588 $— $5,136 $(3,537)$3,343 $10 $3,353 
Comprehensive income, net— — — 59 33 92 — 92 
Cash dividends declared - common(3)
— — — (114)— (114)— (114)
Cash dividends declared - preferred(4)
— — — (11)— (11)— (11)
Stock option and incentive plans, net1 31 — — — 32 — 32 
Cancellation of treasury stock— — (553)— — (553)— (553)
Transactions with noncontrolling interests— — — — — — 1 1 
Distributions to noncontrolling interests— — — — — — (2)(2)
Balance at September 30, 2023
$157 $1,619 $(553)$5,070 $(3,504)$2,789 $9 $2,798 
_____________
(1)Common Stock has a par value of $1 per share.
(2)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.
(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2024 and 2023 were $0.25 per share, respectively, and $0.75 per share, respectively.
(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2024 and 2023 were $20.00 per share, respectively, and $60.00 per share, respectively.
(5)Refer to Note 13 - Debt for additional information related to the purchases of capped calls in connection with the issuance of Xerox Holdings Corporation's $400 of 3.75% Convertible Senior Notes due 2030.
Common Stock and Treasury Stock
The following is a summary of the changes in Common and Treasury stock shares:
Common Stock SharesTreasury Stock Shares
Balance at December 31, 2023123,144 — 
Stock based compensation plans, net1,041 — 
Balance at March 31, 2024124,185 — 
Stock based compensation plans, net134 — 
Balance at June 30, 2024124,319 — 
Stock based compensation plans, net44 — 
Balance at September 30, 2024124,363 — 
Xerox 2024 Form 10-Q 40

Note 18 – Shareholder's Equity of Xerox
The shareholder's equity information presented below reflects the consolidated activity of Xerox.
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at June 30, 2024$3,473 $2,796 $(3,687)$2,582 $4 $2,586 
Comprehensive (loss) income, net— (1,204)173 (1,031)— (1,031)
Dividends declared to parent— (35)— (35)— (35)
Transfers from parent4 — — 4 — 4 
Balance at September 30, 2024$3,477 $1,557 $(3,514)$1,520 $4 $1,524 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's Equity
Non-
controlling
Interests
Total
Equity
Balance at June 30, 2023$3,708 $3,351 $(3,437)$3,622 $8 $3,630 
Comprehensive income (loss), net— 49 (67)(18)— (18)
Dividends declared to parent— (34)— (34)— (34)
Transfers to parent(550)— — (550)— (550)
Transactions with noncontrolling interests— — — — 1 1 
Balance at September 30, 2023
$3,158 $3,366 $(3,504)$3,020 $9 $3,029 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2023$3,485 $2,959 $(3,676)$2,768 $10 $2,778 
Comprehensive (loss) income, net— (1,298)162 (1,136)— (1,136)
Dividends declared to parent— (104)— (104)— (104)
Transfers to parent(8)— — (8)— (8)
Transactions with noncontrolling interests— — — — (5)(5)
Distributions to noncontrolling interests— — — — (1)(1)
Balance at September 30, 2024
$3,477 $1,557 $(3,514)$1,520 $4 $1,524 
Additional Paid-in CapitalRetained Earnings
AOCL(1)
Xerox Shareholder's EquityNon- controlling Interests
Total
Equity
Balance at December 31, 2022$3,693 $3,427 $(3,537)$3,583 $10 $3,593 
Comprehensive income, net— 59 33 92 — 92 
Dividends declared to parent— (120)— (120)— (120)
Transfers to parent(535)— — (535)— (535)
Transactions with noncontrolling interests— — — — 1 1 
Distributions to noncontrolling interests— — — — (2)(2)
Balance at September 30, 2023
$3,158 $3,366 $(3,504)$3,020 $9 $3,029 
_____________
(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.
Xerox 2024 Form 10-Q 41

Note 19 – Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) is comprised of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Pre-taxNet of TaxPre-taxNet of TaxPre-taxNet of TaxPre-taxNet of Tax
Translation Adjustments Gains (Losses)$197 $192 $(123)$(123)$145 $140 $19 $19 
Unrealized Gains (Losses)
Changes in fair value of cash flow hedges gains (losses)5 3 (2)(2)(3)(3)(17)(15)
Changes in cash flow hedges reclassed to earnings(1)
1 2 3 3 8 7 15 15 
Net Unrealized Gains (Losses)6 5 1 1 5 4 (2)— 
Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains15 12 31 23 10 8 11 8 
Prior service amortization(2)
(2)(2)(2)(2)(5)(4)(6)(4)
Actuarial loss amortization/settlement(2)
23 26 8 7 68 60 26 20 
Other (losses) gains(3)
(60)(60)27 27 (46)(46)(10)(10)
Changes in Defined Benefit Plans (Losses) Gains(24)(24)64 55 27 18 21 14 
Other Comprehensive Income (Loss)179 173 (58)(67)$177 $162 $38 $33 
____________
(1)Reclassified to Cost of sales and interest expense - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges.
(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.
(3)Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.
Accumulated Other Comprehensive Loss (AOCL)
AOCL is comprised of the following:
September 30,
2024		December 31,
2023
Cumulative translation adjustments$(1,906)$(2,046)
Other unrealized gains (losses), net1 (3)
Benefit plans net actuarial losses and prior service credits(1,609)(1,627)
Total Accumulated Other Comprehensive Loss$(3,514)$(3,676)
Xerox 2024 Form 10-Q 42

Note 20 – (Loss) Earnings per Share
(shares in thousands)
The following table sets forth the computation of basic and diluted (loss) earnings per share of Xerox Holdings Corporation's common stock:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Basic (Loss) Earnings per Share
Net (Loss) Income$(1,205)$49 $(1,300)$59 
Accrued dividends on preferred stock(4)(4)(11)(11)
Adjusted Net (loss) income available to common shareholders$(1,209)$45 $(1,311)$48 
Weighted average common shares outstanding124,344 157,132 124,149 156,914 
Basic (Loss) Earnings per Share$(9.71)$0.29 $(10.55)$0.31 
Diluted (Loss) Earnings per Share
Net (Loss) Income$(1,205)$49 $(1,300)$59 
Accrued dividends on preferred stock(4)(4)(11)(11)
Adjusted Net (loss) income available to common shareholders$(1,209)$45 $(1,311)$48 
Weighted average common shares outstanding124,344 157,132 124,149 156,914 
Common shares issuable with respect to:
Stock options— — — — 
Restricted stock and performance shares— 1,761 — 1,305 
Convertible preferred stock— — — — 
Adjusted weighted average common shares outstanding124,344 158,893 124,149 158,219 
Diluted (Loss) Earnings per Share$(9.71)$0.28 $(10.55)$0.30 
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options155 245 155 245 
Restricted stock and performance shares7,973 5,233 7,973 5,688 
Convertible preferred stock6,742 6,742 6,742 6,742 
Convertible notes(1)
19,196 — 19,196 — 
Total Anti-Dilutive Securities34,066 12,220 34,066 12,675 
Dividends per Common Share$0.25 $0.25 $0.75 $0.75 
_____________
(1)Refer to Note 13 - Debt for additional information related to the issuance of Xerox Holdings Corporation's $400 of 3.75% Convertible Senior Notes due 2030.
Xerox 2024 Form 10-Q 43

Note 21 – Contingencies and Litigation
Legal Matters
We are involved in a variety of claims, lawsuits, investigations and proceedings concerning: securities law; governmental entity contracting; servicing and procurement law; intellectual property law; environmental law; employment law; the Employee Retirement Income Security Act (ERISA); and other laws and regulations. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs.
Brazil Contingencies
Our Brazilian operations have received or been the subject of numerous governmental assessments related to indirect and other taxes. The tax matters principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. Below is a summary of our Brazilian tax contingencies:
September 30,
2024		December 31,
2023
Tax contingency - unreserved$345 $375 
Escrow cash deposits22 24 
Surety bonds94 104 
Letters of credit11 22 
Liens on Brazilian assets— — 
The decrease in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily due to currency, partially offset by interest. With respect to the unreserved tax contingency, the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the Company. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute, as well as, additional surety bonds and letters of credit, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens on assets would be removed to the extent the matters are resolved in our favor. We are also involved in certain disputes with contract and former employees. Exposures related to labor matters are not material for the periods presented. We routinely assess all these matters as to the probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.
Litigation
Miami Firefighters’ Relief & Pension Fund v. Icahn, et al.:
On December 13, 2019, alleged shareholder Miami Firefighters’ Relief & Pension Fund (Miami Firefighters) filed a derivative complaint in New York State Supreme Court, New York County on behalf of Xerox Holdings Corporation (Xerox Holdings) against Carl Icahn and his affiliated entities High River Limited Partnership and Icahn Capital LP (the Icahn defendants), Xerox Holdings, and all then-current Xerox Holdings directors (the Directors). Xerox Holdings was named as a nominal defendant in the case but no monetary damages are sought against it. Miami Firefighters alleges: breach of fiduciary duty of loyalty against the Icahn defendants; breach of contract against the Icahn defendants (for purchasing HP stock in violation of Icahn’s confidentiality agreement with Xerox Holdings); unjust enrichment against the Icahn defendants; and breach of fiduciary duty of loyalty against the Directors (for any consent to the Icahn defendants’ purchases of HP common stock while Xerox Holdings was considering acquiring HP). Miami Firefighters seeks a judgment of breach of fiduciary duties against the Icahn defendants and the Directors, and disgorgement to Xerox Holdings of profits Icahn Capital and High River earned from trading in HP
Xerox 2024 Form 10-Q 44

stock. This action was consolidated with a similar action brought by Steven J. Reynolds against the same parties in the same court. Miami Firefighters’ counsel has been designated as lead counsel in the consolidated action.
Claims asserted against the Directors were later dismissed.
In December 2021, the Xerox Holdings Board approved the formation of a Special Litigation Committee (SLC) to investigate and evaluate Miami Firefighters' claims and determine the course of action that would be in the best interests of the Company and its shareholders. The SLC concluded that the claims were without merit and pursuing them would not be in the best interest of Xerox or its shareholders. The parties have reached a stipulation of settlement that has been preliminarily approved by the court.
Guarantees
We have issued or provided approximately $222 of guarantees as of September 30, 2024 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil contingencies; iii) support our obligations related to our U.K. pension plans; and iv) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations.
In general, we would only be liable for the amount of these guarantees in the event we, or one of our direct or indirect subsidiaries whose obligations we have guaranteed, defaulted in performing our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support.
Note 22 – Subsequent Events
We have evaluated subsequent events through November 4, 2024, which is the date the financial statements were issued.
Acquisition of ITsavvy
On October 15, 2024, Xerox Corporation (Xerox) entered into a Securities Purchase Agreement (the Purchase Agreement) with ITsavvy Holdings, LLC (the Seller) and ITsavvy Acquisition Company, Inc. (the Company). The Purchase Agreement provides, among other things, that, subject to the terms and conditions set forth therein, Xerox will purchase from the Seller all of the issued and outstanding equity securities of the Company.
The Purchase Agreement provides for a purchase price of $400, consisting of (i) a $180 cash payment at closing, (ii) a $110 secured promissory note to be issued by Xerox to the Seller at closing (the 2025 Note), and (iii) another $110 secured promissory note to be issued by Xerox to the Seller at closing (the 2026 Note and, together with the 2025 Note, the Notes), all subject to certain customary pre- and post-closing adjustments and escrow arrangements.
Each of the Notes will have a principal amount of $110. The 2025 Note will have a maturity date of October 8, 2025 and the 2026 Note will have a maturity date of January 30, 2026. Pursuant to the 2025 Note, Xerox shall pay to the Seller $27.5 within five business days of each of January 1, 2025, April 1, 2025, July 1, 2025, and October 1, 2025. To the extent not previously paid, each of the Notes shall be paid in full in cash on their respective maturity date. The Notes will not bear interest. Notwithstanding the foregoing, the Notes will be subject to prepayment in the event of a “Disposition Event,” as defined in each of the Notes, and customary events of default. Each of the Notes will be subordinated in lien priority to certain outstanding indebtedness of Xerox. Each of the Notes will be secured by a security interest in substantially all of the assets of Xerox Holding Corporation (Holdings), Xerox and certain subsidiaries of Xerox. Holdings and certain subsidiaries of Xerox will be guarantors under each of the Notes.
The Purchase Agreement contains certain representations, warranties, and covenants of each of the parties, including covenants by the Company relating to the operation of the Company’s business prior to the closing. Xerox has obtained representation and warranty insurance, which provides coverage for certain breaches of representations and warranties, subject to certain terms and conditions. The Seller has agreed to indemnify Xerox for losses arising out of specified matters, subject to certain limitations.
The consummation of the transaction is subject to the satisfaction of customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the absence of any law or judgment preventing the closing. The obligation to consummate the transaction by Xerox, on the one hand, and by the Seller and the Company, on the other hand, is also subject to the accuracy of the other’s representations and warranties contained in the Purchase Agreement (subject, with specified exceptions, to
Xerox 2024 Form 10-Q 45

customary materiality standards) and the performance of the other’s covenants and agreements in all material respects. Xerox’s obligation to consummate the transaction is further subject to a condition that, since the date of the Purchase Agreement, there has not been a “Material Adverse Effect,” as defined in the Purchase Agreement. The parties have agreed to certain efforts obligations to promptly obtain the antitrust approvals required for the transaction. Xerox expects to close the transaction in the fourth quarter of 2024.
The Purchase Agreement provides termination rights for Xerox and the Seller under certain circumstances, including, subject to certain conditions, an uncured material breach by the other party or if the transaction is not consummated by January 31, 2025, subject to an automatic extension to March 31, 2025 if the antitrust-related conditions have not been satisfied by such date.
Canadian Forward Flow Agreement
In October 2024, the Company entered into a finance receivables funding agreement with De Lage Landen Financial Services Canada Inc. (DLL), pursuant to which the Company can offer for sale, and DLL may purchase, certain eligible pools of finance receivables structured as “true sales at law” and bankruptcy remote transfers and we have received an opinion to that effect from outside counsel.
The finance receivables funding agreement has an initial term of five years, with automatic one-year extensions thereafter, unless terminated by either the Company or DLL. The Company will be paid a commission on lease receivables sold and will continue to service the lease receivables under the finance receivables funding agreement. If the portfolio performs above a certain level of incremental service, a fee can be earned annually.
In October 2024, the Company sold approximately CAD 89 million in principal balances of lease receivables under this finance receivables funding agreement.




Xerox 2024 Form 10-Q 46

ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Throughout the Management’s Discussion and Analysis (MD&A) that follows, references to “Xerox Holdings” refer to Xerox Holdings Corporation and its consolidated subsidiaries, while references to “Xerox” refer to Xerox Corporation and its consolidated subsidiaries. References herein to “we,” “us,” “our,” and the “Company” refer collectively to both Xerox Holdings and Xerox unless the context suggests otherwise. References to "Xerox Holdings Corporation" refer to the stand-alone parent company and do not include its subsidiaries. References to "Xerox Corporation" refer to the stand-alone company and do not include its subsidiaries.
Xerox Holdings' primary direct operating subsidiary is Xerox and Xerox reflects nearly all of Xerox Holdings' operations. Accordingly, the following MD&A primarily focuses on the operations of Xerox and is intended to help the reader understand Xerox's business and its results of operations and financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with, the Condensed Consolidated Financial Statements and the accompanying notes. Throughout this MD&A, references are made to various notes in the Condensed Consolidated Financial Statements which appear in Item 1 of this combined Quarterly Report on Form 10-Q (this Form 10-Q), and the information contained in such notes is incorporated by reference into the MD&A in the places where such references are made.
Xerox Holdings' other direct subsidiary is Xerox Ventures LLC, which was established solely to invest in startups and early/mid-stage growth companies aligned with the Company’s innovation focus areas and targeted adjacencies. At December 31, 2023 Xerox Ventures, LLC held investments of $26 million. In January 2024, Myriad Ventures Fund I LP (Myriad) was established, and the investments held by Xerox Ventures, LLC were transferred to Myriad, which will continue to be fully consolidated by Xerox Holdings. At September 30, 2024 Myriad had investments of approximately $41 million. Due to its immaterial nature, and for ease of discussion, Xerox Ventures LLC's results are included within the following discussion.
Currency Impact
To understand the trends in the business, we believe that it is helpful to analyze the impact of changes in the translation of foreign currencies into U.S. Dollars on revenue and expenses. We refer to this analysis as "constant currency," “currency impact” or “the impact from currency.” This impact is calculated by translating current period activity in local currency using the comparable prior year period's currency translation rate. This impact is calculated for all countries where the functional currency is the local country currency. We do not hedge the translation effect of revenues or expenses denominated in currencies where the local currency is the functional currency. Management believes the constant currency measure provides investors an additional perspective on revenue trends. Currency impact can be determined as the difference between actual growth rates and constant currency growth rates.
Overview
In the third quarter of 2024, the benefits of Reinvention drove improved financial results, albeit at a slower pace than expected. Third quarter 2024 included a second consecutive period of moderating revenue declines, year over year improvements in adjusted1 operating income and income margin, and more than 100 percent free cash flow2 conversion from adjusted1 operating income. Further, the pending acquisition of ITsavvy is expected to improve our mix of revenue from complementary, value-added businesses with higher underlying rates of revenue growth.
Equipment sales of $339 million in the third quarter 2024 declined 12.2% in actual and constant currency1, as compared to the third quarter 2023. The effects of fluctuations in backlog3 in the prior and current years and other Reinvention actions drove approximately 4.0-percentage points of the year-over-year decline. The remainder of the decline primarily reflects the delayed global launch of two new products, lower-than-expected improvements in sales force productivity, delays in the timing of installations associated with Hurricane Helene, unfavorable mix, and a large Production equipment sale in the prior year. Total equipment installations increased approximately 17.0% year-over-year, due to growth in entry level equipment.
Post-sale revenue of $1.2 billion declined 6.1% in actual currency, or 5.7% in constant currency1, as compared to third quarter 2023. The decline was primarily due to lower outsourcing and service revenue, intentional reductions in non-strategic revenue, and the effects of geographic simplification. Excluding non-strategic effects, post sale revenue decreased low-single digits.
Pre-tax loss of approximately $1.1 billion for the third quarter 2024 decreased by approximately $1.2 billion as compared to pre-tax income of $64 million in the third quarter 2023. Third quarter 2024 includes a pre-tax, non-cash goodwill impairment charge of $1.1 billion ($1.0 billion after-tax) or $8.16 per diluted share. As a result of a sustained market capitalization below our book value and current results, in the third quarter 2024 we performed a
Xerox 2024 Form 10-Q 47

quantitative assessment of Goodwill. Although operating results and related cash flows are expected to sequentially improve in the fourth quarter 2024, and in 2025, we see greater risk to our previous outlooks and estimates, at least in the near term. This impact and the resulting effect on discounted future cash flows, continued to negatively impact the Company’s valuation resulting in the goodwill impairment charge for the third quarter 2024. The decrease associated with this charge was partially offset by an increase in adjusted1 operating income.
Adjusted1 operating income increased by $12 million as compared to third quarter 2023, reflecting lower Selling, administrative and general expenses associated with actions taken to simplify our organization, Research, development and engineering expenses (RD&E), and partially offset by lower equipment and post sale revenue and associated gross profits.
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(1)Refer to the “Non-GAAP Financial Measures" section for an explanation of the non-GAAP financial measure.
(2)Free cash flow is defined as Net cash provided by operating activities less capital expenditures.
(3)Order backlog is measured as the value of unfulfilled sales orders, shipped and non-shipped, received from our customers waiting to be installed, including orders with future installation dates. It includes printing devices as well as IT hardware associated with our IT services offerings.
Goodwill - Quantitative Impairment Evaluation
We assess Goodwill for impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the third quarter 2024, we identified events and conditions that required a quantitative assessment of Goodwill. Refer to Note 1 - Basis of Presentation in the Condensed Consolidated Financial Statements for additional information regarding the assessment of Goodwill.
Valuation Allowance
During the third quarter 2024, a valuation allowance was recorded primarily related to certain deferred tax assets in a non-U.S tax jurisdiction. Refer to Note 1 - Basis of Presentation in the Condensed Consolidated Financial Statements for additional information regarding the valuation allowance.
Divestitures
In March 2024, Xerox completed the sales of its direct business operations in Argentina and Chile to Grupo Datco. Refer to Note 6 - Divestitures in the Condensed Consolidated Financial Statements for additional information regarding these sales.
Xerox 2024 Form 10-Q 48

2024 Review
Total revenue of $1.53 billion for third quarter 2024 decreased 7.5% from third quarter 2023, which included a 0.2-percentage point unfavorable impact from currency. Total revenue of $4.61 billion for the nine months ended September 30, 2024 decreased 10.0% as compared to the prior year period, with no impact from currency.
Net (loss) income and adjusted1 Net income were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)20242023B/(W)20242023B/(W)
Net (Loss) Income $(1,205)$49 $(1,254)$(1,300)$59 $(1,359)
Adjusted(1) Net income
34 77 (43)86 231 (145)
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(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
Third quarter 2024 Net (loss) was $(1,205) million as compared to the third quarter 2023 Net income of $49 million. The decrease in Net income of $1,254 million primarily reflects the after-tax non-cash Goodwill impairment charge of $1,015 million ($1,058 million pre-tax) in the third quarter 2024, as well as lower revenue and gross profit, higher Other expenses, net, which included the impacts of higher non-service retirement-related costs, higher Restructuring and related costs, net, and higher Income tax expense. These negative impacts were partially offset by lower Selling, administrative and general expenses and Research, development and engineering expenses (RD&E). Third quarter 2024 Adjusted1 Net income of $34 million decreased $43 million as compared to the prior year period, primarily reflecting lower revenue and gross profit, as well as higher Other expenses, net, and Income tax expense. These negative impacts were partially offset by lower Selling, administrative and general expenses, and RD&E.
Net (loss) for the nine months ended September 30, 2024 was $(1,300) million as compared to the prior year period Net income of $59 million. The decrease in Net income of $1,359 million primarily reflects the after-tax non-cash Goodwill impairment charge of $1,015 million ($1,058 million pre-tax) in the third quarter 2024, as well as lower revenue and gross profit, higher Other expenses, net, which included the impacts of higher non-service retirement-related costs, higher Income tax expense, higher Restructuring and related costs, net, the loss from divestitures of certain direct business operations in Latin America, and the exit of certain production print manufacturing operations. These negative impacts were partially offset by lower Selling, administrative and general expenses and lower RD&E. Adjusted1 Net income for the nine months ended September 30, 2024 of $86 million decreased $145 million as compared to the prior year period, primarily reflecting lower revenue and gross profit, as well as higher Other expenses, net. These negative impacts were partially offset by lower Selling, administrative and general expenses, lower RD&E, and lower Income tax expense.
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(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
The following is a summary of our segments - Print and Other and Xerox Financial Services (XFS):
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)20242023% Change20242023% Change
Revenue
Print and Other$1,457 $1,575 (7.5)%$4,395 $4,885 (10.0)%
XFS88 98 (10.2)%268 301 (11.0)%
Intersegment Elimination(1)
(17)(21)(19.0)%(55)(65)(15.4)%
Total Revenue$1,528 $1,652 (7.5)%$4,608 $5,121 (10.0)%
Profit
Print and Other$67 $64 4.7 %$181 $271 (33.2)%
XFS13 4 nm17 22 (22.7)%
Total Profit$80 $68 17.6 %$198 $293 (32.4)%
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(1)Reflects revenue, primarily commissions and other payments, made by the XFS segment to the Print and Other segment for the lease of Xerox equipment placements.

Xerox 2024 Form 10-Q 49

Cash flows from operating activities during the nine months ended September 30, 2024 was a source of $160 million and decreased $137 million as compared to the prior year period, primarily related to lower net income as well as higher payments for accrued compensation, pension contributions, and restructuring, partially offset by net proceeds of approximately $511 million from the on-going sales of finance receivables under the finance receivables funding agreement, as well as lower finance receivable originations, and improvements in cash for working capital1.
Cash used in investing activities during the nine months ended September 30, 2024 was $26 million, reflecting capital expenditures of $27 million, $11 million related to the impact of the deconsolidation of an entity that is now accounted for using the equity method of accounting, and $16 million for investments in noncontrolling interests, all of which was partially offset by net cash proceeds of approximately $20 million from the sale of assets, and $7 million from the sales of our business operations in Argentina and Chile.
Cash used in financing activities during the nine months ended September 30, 2024 was $149 million reflecting net payments of approximately $658 million on Senior Notes due in 2024 and 2025, $211 million on secured financing arrangements, $18 million for debt issuance costs, and $21 million on the Term Loan B facility. Partially offsetting payments on debt were proceeds from the issuance of Senior Notes during first quarter 2024 of approximately $900 million. Dividend payments were $107 million and purchases of capped calls were $23 million in connection with the issuance of Convertible Senior Notes.
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(1)Working capital, net reflects Accounts receivable, Billed portion of finance receivables, Inventories and Accounts payable.
Revenue guidance was reduced from a decline of 5% to 6% in constant currency1 to a decline of about 10% in constant currency1, reflecting the incremental effects of intentional reductions in non-strategic revenue and lower equipment revenue associated with the delayed global launch of two new products and lower-than-expected improvements in sales force productivity. Adjusted1 operating income guidance was reduced from at least 6.5% to about 5.0%, reflecting the effects of gross profit declines associated with the decline in revenue guidance, and to a lesser extent, delays in the implementation of certain cost reduction initiatives to 2025. Operating cash flows are now expected to be to be within a range of $490 million to $540 million, versus prior guidance of at least $600 million, reflecting the after-tax effects of the reduction in adjusted1 operating income guidance. We now expect capital expenditures to be approximately $40 million, as compared to previous guidance of approximately $50 million.
Due to lower-than-expected revenue in 2024, we no longer expect to grow adjusted1 operating income $300 million above 2023 levels by 2026. However, we continue to expect growth in adjusted1 operating income and a return to double-digit adjusted1 operating income margin over the course of our Reinvention.
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(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
Xerox 2024 Form 10-Q 50

Financial Review
Revenues
Three Months Ended
September 30,		Nine Months Ended
September 30,		% of Total Revenue
(in millions)20242023% ChangeCC % Change20242023% ChangeCC % Change20242023
Equipment sales$339 $386 (12.2)%(12.2)%$985 $1,197 (17.7)%(17.7)%21 %23 %
Post sale revenue1,189 1,266 (6.1)%(5.7)%3,623 3,924 (7.7)%(7.7)%79 %77 %
Total Revenue$1,528 $1,652 (7.5)%(7.3)%$4,608 $5,121 (10.0)%(10.0)%100 %100 %
Reconciliation to Condensed Consolidated Statements of (Loss) Income):
Sales$588 $644 (8.7)%(8.3)%$1,722 $1,999 (13.9)%(13.9)%
Less: Supplies, paper and other sales(249)(258)(3.5)%(2.3)%(737)(802)(8.1)%(8.1)%
Equipment sales$339 $386 (12.2)%(12.2)%$985 $1,197 (17.7)%(17.7)%
Services, maintenance and rentals$902 $962 (6.2)%(6.1)%$2,768 $2,975 (7.0)%(7.0)%
Add: Supplies, paper and other sales249 258 (3.5)%(2.3)%737 802 (8.1)%(8.1)%
Add: Financing38 46 (17.4)%(17.6)%118 147 (19.7)%(19.9)%
Post sale revenue
$1,189 $1,266 (6.1)%(5.7)%$3,623 $3,924 (7.7)%(7.7)%
Segments
Print and Other$1,457 $1,575 (7.5)%$4,395 $4,885 (10.0)%95 %95 %
Xerox Financial Services (XFS)88 98 (10.2)%268 301 (11.0)%6 %6 %
Intersegment elimination(1)
(17)(21)(19.0)%(55)(65)(15.4)%(1)%(1)%
Total Revenue(2)
$1,528 $1,652 (7.5)%$4,608 $5,121 (10.0)%100 %100 %
_____________
CC - See "Currency Impact" section for a description of Constant Currency.
(1)Reflects revenue, primarily commissions and other payments, made by the XFS segment to the Print and Other segment for the lease of Xerox equipment placements.
(2)Refer to Note 4 - Segment Reporting in the Condensed Consolidated Financial Statements for additional information regarding our reportable segments.
Third quarter 2024 total revenue decreased 7.5% as compared to third quarter 2023, and included a 0.2-percentage point adverse impact from currency, while total revenue for the nine months ended September 30, 2024 decreased 10.0%, with no impact from currency. The decrease in equipment sales revenue at constant currency1 for the three months ended September 30, 2024 was primarily attributable to a delay in the global launch of two new products, lower-than-expected improvements in sales productivity, unfavorable mix, and a large production equipment sale in the third quarter 2023. Equipment sales revenue for the three months ended September 30, 2024 was also impacted by the effects of backlog fluctuations in the current and prior year quarters, and non-strategic reductions in revenue, including geographic simplification. For the nine months ended September 30, 2024, equipment sales revenue was primarily impacted by lower-than-expected improvements in sales productivity and unfavorable mix, as well as the effects of backlog fluctuations in the current and prior year quarters, and non-strategic reductions in revenue, including geographic simplification.
Third quarter 2024 Post sale revenue decreased at constant currency1 due to a decline in contractual print services2 revenue, driven by lower service and outsourcing revenue, and reductions in lower margin IT endpoint device placements. These negative impacts were partially offset by higher supplies revenue and digital and managed IT services revenue. For the nine months ended September 30, 2024, Post sale revenue decreased at constant currency1 primarily due to the decline in Contractual print services2 driven by lower service and outsourcing revenue, and reductions in lower margin IT endpoint device placements, as well as the termination of Fuji royalty income and PARC revenue, lower paper sales, lower Finance income, and the effects of geographic simplification. These negative impacts were partially offset by higher supplies revenue and digital and managed IT services revenue.
Total revenue for the three and nine months ended September 30, 2024 reflected the following:
Xerox 2024 Form 10-Q 51

Post sale revenue
Post sale revenue reflects revenues from Contractual print services2, supplies and financing. These revenues are associated not only with the population of devices in the field, which is affected by installs and removals, but also by the page volumes generated from the usage of such devices and the revenue per printed page. Post sale revenue also includes transactional IT hardware sales and other Managed IT services, as well as gains and commissions, and servicing revenue on the sale of finance receivables.
Post sale revenue decreased 6.1% as compared to third quarter 2023, which included a 0.4-percentage point adverse impact from currency, while Post sale revenue decreased 7.7% for the nine months ended September 30, 2024 as compared to the prior year period, with no impact from currency. Post sale revenue reflected the following:
•Services, maintenance and rentals revenue includes maintenance revenue (including bundled supplies), print, digital and managed IT services revenue from our Services offerings, rentals and other revenues. For the three months ended September 30, 2024, these revenues decreased 6.2% as compared to third quarter 2023, which included a 0.1-percentage point adverse impact from currency, while for the nine months ended September 30, 2024 these revenues decreased 7.0% as compared to the prior year period, with no impact from currency. The decline at constant currency1 for both the three and nine months ended September 30, 2024, respectively, was primarily due to Contractual print services2 declines. Contractual print services2 revenue declined mid-single digits for the three and nine months ended September 30, 2024 as compared to the respective prior year periods, driven by lower outsourcing and service revenue, which includes the effects of geographic simplification, which were partially offset by higher digital and IT managed services, as well as gains, commissions, and servicing revenue on sales of finance receivables. The decline for the nine months ended September 30, 2024 was also driven by the termination of Fuji royalty income and PARC revenue.
•Supplies, paper and other sales revenue includes unbundled supplies, IT hardware and other sales. For the three months ended September 30, 2024, these revenues decreased 3.5% as compared to third quarter 2023, including a 1.2-percentage point adverse impact from currency, while for the nine months ended September 30, 2024 the revenues decreased 8.1% as compared to the prior year period with no impact from currency. The decline at constant currency1 for both the three and nine months ended September 30, 2024, respectively, primarily reflected lower sales of non-strategic, lower margin IT endpoint device placements and paper sales, as well as the effects of geographic simplification. The decline in both periods was partially offset by higher supplies revenue.
•Financing revenue is generated from direct and indirect financing of Xerox equipment. These revenues decreased 17.4% as compared to third quarter 2023, including a 0.2-percentage point benefit from currency. Financing revenue for the nine months ended September 30, 2024 decreased 19.7% as compared to the prior year period, including a 0.2-percentage point benefit from currency. The decline at constant currency1 for both the three and nine months ended September 30, 2024, respectively, reflects a continued reduction of the average finance receivables balance in 2024 as a result of the sales of finance receivables in recent quarters to HPS Investment Partners (HPS), as well as lower originations. Finance receivables are approximately $630 million lower as of September 30, 2024 when compared with September 30, 2023.
Equipment sales revenue
Equipment sales revenue decreased 12.2% as compared to third quarter 2023, with no impact from currency. The decrease in constant currency1 was primarily attributable to a delay in the global launch of two new products, lower-than-expected improvements in sales productivity, unfavorable mix, and a large production equipment sale in the prior year. Equipment sales revenue was also impacted by the effects of backlog fluctuations in the current and prior year quarters, and non-strategic reductions in revenue, including geographic simplification. Revenue declined across all product groups, and was most pronounced in Mid-range, driven by declines in entry production color products.
For the nine months ended September 30, 2024 Equipment sales revenue decreased 17.7%, with no impact from currency. The decrease in constant currency1 was primarily impacted by lower-than-expected improvements in sales productivity, unfavorable mix, as well as the effects of backlog fluctuations in the current and prior year quarters, and non-strategic reductions in revenue, including offering and geographic simplification. Revenue declined across all product groups, and was most pronounced in Mid-range, driven by declines in A3 color multi-function printers.
See Segment Review - Print and Other below for additional discussion on Equipment sales revenue.
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(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
(2)Includes revenues from Services, maintenance and rentals.
Xerox 2024 Form 10-Q 52

Costs, Expenses and Other Income
Summary of Key Financial Ratios
The following is a summary of key financial ratios used to assess our performance:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)20242023B/(W)20242023B/(W)
Gross Profit$495 $536 $(41)$1,458 $1,722 $(264)
RD&E45 52 7 144 173 29 
SAG370 416 46 1,160 1,256 96 
Equipment Gross Margin28.5 %31.0 %(2.5)pts.31.4 %34.3 %(2.9)pts.
Post sale Gross Margin33.5 %32.9 %0.6 pts.31.7 %33.4 %(1.7)pts.
Total Gross Margin32.4 %32.4 %— pts.31.6 %33.6 %(2.0)pts.
RD&E as a % of Revenue2.9 %3.1 %0.2 pts.3.1 %3.4 %0.3 pts.
SAG as a % of Revenue24.2 %25.2 %1.0 pts.25.2 %24.5 %(0.7)pts.
Pre-tax (Loss) Income$(1,087)$64 $(1,151)$(1,212)$60 $(1,272)
Pre-tax (Loss) Income Margin(71.1)%3.9 %(75.0)pts.(26.3)%1.2 %(27.5)pts.
Adjusted(1) Operating Income
$80 $68 $12 $198 $293 $(95)
Adjusted(1) Operating Income Margin
5.2 %4.1 %1.1 pts.4.3 %5.7 %(1.4)pts.
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(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
Gross Margin
Third quarter 2024 gross margin of 32.4% was flat as compared to third quarter 2023, primarily reflecting lower revenue and gross profit, higher transportation costs, as well as unfavorable equipment mix and lower print volumes. These impacts were offset by the benefits associated with recent cost and productivity actions, and favorable currency.
Gross margin for the nine months ended September 30, 2024 of 31.6% decreased by 2.0-percentage points as compared to the prior year period, reflecting lower revenue and gross profit, primarily due to charges associated with the exit of certain production print manufacturing operations, which had a 1.0-percentage point unfavorable impact on gross margin, as well as higher transportation and product costs, an unfavorable equipment mix and lower print volumes. These impacts were partially offset by the benefits associated with recent cost and productivity actions and favorable currency.
Third quarter 2024 Equipment gross margin of 28.5% decreased by 2.5-percentage points as compared to third quarter 2023, reflecting lower revenue and gross profit, higher transportation costs, and the release of a tariff accrual in the prior year period. These impacts were partially offset by favorable currency.
Equipment gross margin for the nine months ended September 30, 2024 of 31.4% decreased by 2.9-percentage points as compared to the prior year period, reflecting lower revenue and gross profit, higher product and transportation costs, and the release of a tariff accrual in the prior year period. These impacts were partially offset by favorable currency.
Third quarter 2024 Post sale gross margin of 33.5% increased by 0.6-percentage points as compared to third quarter 2023, reflecting the benefits associated with recent Reinvention-related cost and productivity actions and favorable currency. These benefits were partially offset by lower revenue and gross profit, including lower page volumes.
Post sale gross margin for the nine months ended September 30, 2024 of 31.7% decreased by 1.7-percentage points as compared to the prior year period, reflecting lower revenue and gross profit, including lower page volumes, and charges associated with the Company's Reinvention, primarily related to the exit of certain production print manufacturing operations, which had a 1.2-percentage point unfavorable impact on gross margin. Higher transportation costs also adversely impacted gross margin. These impacts were partially offset by the benefits associated with recent cost and productivity actions and favorable currency.
Xerox 2024 Form 10-Q 53

Research, Development and Engineering Expenses (RD&E)
 Three Months Ended September 30,Nine Months Ended September 30,
(in millions)20242023Change20242023Change
R&D$33 $38 $(5)$108 $132 $(24)
Sustaining engineering12 14 (2)36 41 (5)
Total RD&E Expenses$45 $52 $(7)$144 $173 $(29)
Third quarter 2024 RD&E as a percentage of revenue of 2.9% decreased 0.2-percentage points as compared to third quarter 2023, primarily due to lower revenues and lower RD&E.
RD&E as a percentage of revenue for the nine months ended September 30, 2024 of 3.1% decreased by 0.3-percentage points as compared to the prior year period, primarily due to the strategic decision to donate PARC in second quarter 2023.
Third quarter 2024 RD&E of $45 million decreased $7 million as compared to third quarter 2023. For the nine months ended September 30, 2024 RD&E of $144 million decreased $29 million as compared to the prior year period.
The decrease, as compared to the respective prior year periods, was primarily due to productivity and cost savings related to the Company's Reinvention, the spin-off, exit, or shutdown of certain other RD&E related activities or businesses, and the corresponding reduction in real estate. The lower spending in innovation reflects decisions which provide greater focus and financial flexibility to pursue growth opportunities adjacent to our core operations within Print, Digital and IT Services. The decrease for the nine months ended September 30, 2024 also reflected the strategic decision to donate PARC in second quarter 2023.
Selling, Administrative and General Expenses (SAG)
Third quarter 2024 SAG as a percentage of revenue of 24.2% decreased by 1.0-percentage points as compared to third quarter 2023, primarily due to lower revenue, as well lower selling and other administrative and general expenses.
Third quarter 2024 SAG of $370 million decreased by $46 million as compared to third quarter 2023, primarily reflecting productivity and cost savings related to the Company's Reinvention, and lower incentive compensation expenses.
SAG as a percentage of revenue for the nine months ended September 30, 2024 of 25.2% increased by 0.7-percentage points as compared to the prior year period, primarily due to lower revenue, as well as higher bad debt expense, which were partially offset by lower selling and other administrative and general expenses.
SAG for the nine months ended September 30, 2024 of $1,160 million decreased by $96 million as compared to the prior year period, primarily reflecting productivity and cost savings related to the Company's Reinvention, as well as, lower incentive compensation expense, lower IT, litigation, and advertising costs, and the strategic decision to donate PARC in the prior year. These favorable impacts were partially offset by higher bad debt expense and unfavorable currency.
The bad debt provision for the third quarter 2024 of $10 million was flat as compared to the third quarter 2023, and includes a reserve release of approximately $8 million due in part to a lower finance receivables balance, as a result of sales of finance receivables in recent quarters to HPS Investment Partners, mostly offset by an increased provision for aged accounts receivables.
The bad debt provision for nine months ended September 30, 2024 of $35 million, increased by $18 million as compared to the prior year period. The increase reflects a reserve release in the prior year period of approximately $12 million due to a favorable reassessment of the credit exposure on a large customer receivable balance, as well as an increased provision for aged accounts receivables in the current year, both of which were offset by a reserve release of approximately $8 million, in the current year, due in part to a lower finance receivables balance, as a result of sales of finance receivables in recent quarters to HPS Investment Partners.
We continue to monitor developments in future economic conditions, and as a result, our reserves may need to be updated in future periods. As of September 30, 2024, on a trailing twelve-month basis, bad debt expense (excluding the reserve release in the third quarter 2024) was approximately 1.6% of total receivables, as compared to approximately 1.0% for the prior year comparable period, primarily due to a lower finance receivables balance, as well the reserve release of approximately $8 million in third quarter 2024.
Refer to Note 7 - Accounts Receivable, Net and Note 8 - Finance Receivables, Net in the Condensed Consolidated Financial Statements for additional information regarding our bad debt provision.
Xerox 2024 Form 10-Q 54

Restructuring and Related Costs, Net
We incurred Restructuring and related costs, net of $56 million for the third quarter 2024, as compared to $10 million for the third quarter 2023, and $107 million for the nine months ended September 30, 2024, as compared to $35 million in the prior year period. Charges incurred during 2024 are associated with strategic actions taken as a result of the Company's Reinvention, primarily related to optimizing operations, the exit of certain production print manufacturing operations, and geographic simplification.
Third quarter 2024 actions impacted several functional areas, with approximately 65% focused on gross margins improvements, approximately 30% focused on SAG reductions, and the remainder focused on RD&E optimization. Third quarter 2023 actions impacted several functional areas, with approximately 80% focused on SAG reductions and approximately 20% focused on RD&E optimization.
The Restructuring and related costs, net reserve balance for all programs as of September 30, 2024 was $132 million, of which $112 million is expected to be paid over the next twelve months.
Refer to Note 11 - Restructuring Programs in the Condensed Consolidated Financial Statements for additional information regarding our restructuring programs.
Worldwide Employment
Worldwide employment was approximately 17,300 as of September 30, 2024, a decrease of approximately 2,800 from December 31, 2023. The decrease primarily relates to the Company's Reinvention, which includes the effects of workforce reduction decisions announced in January 2024, as well as net attrition (attrition net of gross hires).
Other Expenses, Net
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Non-financing interest expense$31 $14 $88 $40 
Interest income(3)(3)(10)(12)
Non-service retirement-related costs25 4 74 14 
Gains on sales of businesses and assets(2)(35)(3)(37)
Currency losses, net2 6 15 22 
Tax indemnification - Conduent— (7)— (7)
Transaction related costs, net(15)— (38)— 
(Gain) loss on early extinguishment of debt— — (3)3 
Gain on release of contingent consideration— — (5)— 
All other expenses, net5 3 2 10 
Other expenses, net$43 $(18)$120 $33 
Non-Financing Interest Expense
Third quarter 2024 non-financing interest expense of $31 million was $17 million higher than third quarter 2023. Non-financing interest expense for the nine months ended September 30, 2024 of $88 million was $48 million higher than the prior year period. The respective increase in both periods is primarily due to higher interest rates on new debt issued in the first quarter of 2024, partially offset by a lower average debt balance as a result of the repayment of Senior Notes in 2022 and in the first quarter 2023.
When non-financing interest is combined with financing interest expense (Cost of financing) for the three months ended September 30, 2024, total interest expense increased by $13 million as compared to third quarter 2023, while for the nine months ended September 30, 2024, total interest expense of $170 million increased by $30 million from the prior year period. The respective increase in both periods reflects the impact of higher interest rates on new debt partially offset by a lower average debt balance, due in part to the reduction of the average finance receivables balance, due to the sales of finance receivables to HPS Investment Partners, as well as lower originations.
Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt activity and interest expense.
Non-Service Retirement-Related Costs
Xerox 2024 Form 10-Q 55

Third quarter 2024 non-service retirement-related costs of $25 million were $21 million higher than the third quarter 2023, while non-service retirement-related costs of $74 million for the nine months ended September 30, 2024 were $60 million higher than the prior year period. The respective increase in both periods is primarily due to an increase in actuarial losses subject to amortization, as well as a decrease in the expected return on plan assets.
Refer to Note 16 - Employee Benefit Plans in the Condensed Consolidated Financial Statements for additional information regarding service and non-service retirement-related costs.
Gains on sales of businesses and assets
For the three and nine months ended September 30, 2024, gains on sales of businesses and assets decreased $33 million and $34 million, respectively, as compared to their respective prior year periods, due to the sales of non-core surplus business assets in the prior year period.
Currency losses, net
For the three and nine months ended September 30, 2024, currency losses, net decreased $4 million and $7 million, respectively, as compared to their respective prior year periods, primarily due to the prior period sales of our Russian subsidiary, and our direct business operations in Argentina.
Tax Indemnification - Conduent
Third quarter 2023 credit represents the reversal of a payable to Conduent of an IRS refund Xerox was expected to receive with the settlement of a pre-separation unrecognized tax position. The matter was resolved during the third quarter 2023 and both the receivable from the IRS and the payable to Conduent were no longer required. The reversal of the offsetting IRS refund receivable is recorded as a charge in Income tax expense.
Transaction and related costs, net
Transaction and related costs, net primarily reflect costs from third party providers for professional services associated with certain major or strategic M&A projects. For the three and nine months ended September 30, 2024, Transaction and related costs, net reflect insurance proceeds related to a legal settlement, for the reimbursement of certain legal and other professional costs, associated with a past potential merger.
(Gain) loss on early extinguishment of debt
The (gain) on early extinguishment of debt of $(3) million for the nine months ended September 30, 2024 reflects a $(4) million (gain) on the repayment of Senior Notes (via tender offer) in the first quarter of 2024, partially offset by a loss of approximately $1 million on the write-off of deferred debt issuance costs.
The loss on early extinguishment of debt of $3 million for the nine months ended September 30, 2023 related to the early repayment on secured borrowings and the termination of our $250 million Credit Facility prior to entering into our 5-year Asset Based Lending (ABL) Facility.
Gain on release of contingent consideration
The gain on the release of contingent consideration of $5 million for the nine months ended September 30, 2024 reflects a reserve release related to earn-out provisions which were not met, in connection with a prior acquisition.
Pre-tax (Loss) Income Margin
Third quarter 2024 pre-tax (loss) margin of (71.1)% increased 75.0-percentage points, as compared to third quarter 2023 pre-tax income margin of 3.9%. The increase was due to the pre-tax non-cash goodwill impairment charge of $1,058 million, as a result of a sustained market capitalization below our book value, current results and expected future projections. In addition, the pre-tax (loss) margin also reflects lower revenue and associated gross profit, higher Restructuring and related costs, net, as well as higher Other expenses, net. These impacts were partially offset by lower Selling, administrative and general expenses.
Pre-tax (loss) margin of (26.3)% for the nine months ended September 30, 2024 increased 27.5-percentage points, as compared to the prior year period pre-tax income margin of 1.2%. The increase was primarily due to the pre-tax goodwill non-cash impairment charge of $1,058 million recorded in the third quarter 2024. In addition, the pre-tax (loss) margin also reflects lower revenues and associated gross profit, higher Restructuring and related costs, net, the divestitures of certain direct business operations in Latin America, the exit of certain production print manufacturing operations, as well as higher Other expense, net. These impacts were partially offset by the PARC donation charge in 2023, as well as lower Selling, administrative and general expenses, and lower RD&E expenses.
Xerox 2024 Form 10-Q 56

Adjusted1 Operating Margin
Third quarter 2024 adjusted1 operating income margin of 5.2% increased by 1.1-percentage points as compared to third quarter 2023, primarily reflecting the benefits from Reinvention related cost and productivity actions, lower Selling, administrative and general expenses, including lower incentive compensation expenses, favorable currency, and the spin-off, exit, or shutdown of certain other RD&E related activities or businesses. These benefits were partially offset by lower revenue and lower gross profit, and higher transportation costs.
Adjusted1 operating income margin of 4.3% for the nine months ended September 30, 2024 decreased by 1.4-percentage points as compared to prior year period, reflecting lower revenue and lower gross profit, which included higher transportation and product costs, and the termination of Fuji royalty income, as well as higher bad debt expense. These impacts were partially offset by lower Selling, administrative and general expenses, including lower incentive compensation expenses, and the benefits from Reinvention related cost and productivity actions, benefits from the strategic decision to donate PARC in second quarter 2023, and the spin-off, exit, or shutdown of certain other RD&E related activities or businesses.
______________
(1)Refer to the Adjusted Operating Income and Margin reconciliation table in the "Non-GAAP Financial Measures" section.
Income Taxes
Third quarter 2024 effective tax rate was (10.9)%. This rate was lower than the U.S. federal statutory tax rate of 21% but resulted in a tax expense, primarily due to the goodwill impairment charge, the establishment of a valuation allowance on certain deferred tax assets including not benefiting related current year losses as well as the geographical mix of earnings. On an adjusted1 basis, third quarter 2024 effective tax rate was 27.7%, which was higher than the U.S. federal statutory tax rate of 21% primarily due to not benefiting certain current year losses and the geographical mix of adjusted earnings, partially offset by the redetermination of certain unrecognized tax positions.
Third quarter 2023 effective tax rate was a 23.4%, which is higher than the U.S. federal statutory tax rate of 21%, primarily due to the geographical mix of earnings, partially offset by the tax benefits due to redetermination of certain unrecognized tax positions upon conclusion of several audits, and the remeasurement of deferred tax assets. On an adjusted1 basis, third quarter 2023 effective tax rate was 7.2%, which is lower than the U.S. federal statutory tax rate of 21%, primarily due to a tax rate benefit of approximately 15% related to the redetermination of certain unrecognized tax positions upon the conclusion of several audits, as well as the remeasurement of deferred tax assets, partially offset by the geographical mix of adjusted earnings.
The effective tax rate for the nine months ended September 30, 2024 was (7.3)%. This rate was lower than the U.S. federal statutory tax rate of 21% but resulted in a tax expense, primarily due to the goodwill impairment charge, the establishment of a valuation allowance on certain deferred tax assets including not benefiting related current year losses and the geographical mix of earnings, partially offset by the redetermination of certain unrecognized tax positions. On an adjusted1 basis, the effective tax rate for the nine months ended September 30, 2024 was 22.5%, which was higher than the U.S. federal statutory tax rate of 21% primarily due to not benefiting certain current year losses and the geographical mix of adjusted earnings, partially offset by the redetermination of certain unrecognized tax positions.
The effective tax rate for the nine months ended September 30, 2023 was a 1.7% and includes the loss on the PARC donation as well as the associated tax benefits. Excluding this impact, the effective tax rate was 21.5%. On an adjusted1 basis, the effective tax rate for the nine months ended September 30, 2023 was 14.4%. The adjusted1 effective tax rate was lower than the U.S. federal statutory tax rate of 21% primarily due to a tax rate benefit of approximately 7% related to the redetermination of certain unrecognized tax positions upon the conclusion of several audits, as well as the change in tax filing positions and the remeasurement of deferred tax assets, partially offset by the geographical mix of adjusted earnings.
The effective tax rate is based on nonrecurring events as well as recurring factors, including the taxation of foreign income. In addition, the effective tax rate will change based on discrete or other nonrecurring events that may not be predictable.
_____________
(1)Refer to the Adjusted Effective Tax Rate reconciliation table in the "Non-GAAP Financial Measures" section.
Xerox 2024 Form 10-Q 57

Net (Loss) Income
Third quarter 2024 Net (Loss) was $(1,205) million, or $(9.71) per diluted share, which includes an after-tax non-cash goodwill impairment charge of approximately $1,015 billion (approximately $1,058 billion pre-tax), or $8.16 per diluted share. In addition, third quarter 2024 includes a tax expense charge of $161 million, or $1.29 per diluted share, related to the establishment of a valuation allowance against certain non-U.S. tax jurisdiction deferred tax assets to reflect their realizability. On an adjusted1 basis, Net Income was $34 million, or $0.25 per diluted share.
Third quarter 2023 Net income was $49 million, or $0.28 per diluted share. On an adjusted1 basis, Net Income was $77 million, or $0.46 per diluted share.
Net (Loss) for the nine months ended September 30, 2024 was $(1,300) million, or $(10.55) per diluted share, which includes an after-tax non-cash goodwill impairment charge of approximately $1,015 billion (approximately $1,058 billion pre-tax), or $8.16 per diluted share. In addition, 2024 includes a tax expense charge of $161 million, or $1.29 per diluted share, related to the establishment of a valuation allowance against certain non-U.S. tax jurisdiction deferred tax assets to reflect their realizability. On an adjusted1 basis, Net Income was $86 million, or $0.60 per diluted share.
Net Income for the nine months ended September 30, 2023 was $59 million, or $0.30 per diluted share, which included the net after-tax PARC donation charge of $92 million ($132 million pre-tax), or $0.58 per diluted share. On an adjusted1 basis, Net Income was $231 million, or $1.39 per diluted share.
Refer to Note 20 - (Loss) Earnings per Share in the Condensed Consolidated Financial Statements for additional information regarding the calculation of basic and diluted (loss) earnings per share.
_____________
(1)Refer to the Adjusted Net Income and EPS reconciliation table in the "Non-GAAP Financial Measures" section. For the calculations of basis and diluted (loss) earnings per share, refer to Note 20 - (Loss) Earnings per Share in the Notes to the Condensed Consolidated Financial Statements.
Other Comprehensive Income (Loss)
Third quarter 2024 Other Comprehensive Income, Net was $173 million and included the following: i) net translation adjustment gains of $192 million reflecting the strengthening of all of our major foreign currencies against the U.S. Dollar during the quarter; ii) $5 million of net unrealized gains; and iii) $24 million of net losses from the changes in defined benefit plans primarily reflecting the negative impact of currency, partially offset by the amortization of actuarial losses, as well as actuarial gains. This compares to Other Comprehensive Loss, Net of $67 million for the third quarter 2023, which included the following: i) net translation adjustment losses of $123 million reflecting the weakening of our major foreign currencies against the U.S. Dollar during the quarter; ii) $55 million of net gains from the changes in defined benefit plans primarily due to due to net actuarial gains, the positive impact of currency, and the amortization of actuarial losses; and iii) $1 million of net unrealized gains.
Other Comprehensive Income, Net for the nine months ended September 30, 2024 was $162 million and included the following: i) net translation adjustment gains of $140 million reflecting the strengthening of the British Pound and the Euro against the U.S. Dollar; ii) $18 million of net gains from the changes in defined benefit plans primarily reflecting the amortization of actuarial losses, as well as actuarial gains, partially offset by the negative impact of currency; and iii) $4 million of net unrealized gains. This compares to Other Comprehensive Income, Net for the nine months ended September 30, 2023 of $33 million, which included the following: i) net translation adjustment gains of $19 million reflecting the strengthening of most of our major foreign currencies against the U.S. Dollar; and ii) $14 million of net gains from the changes in defined benefit plans primarily due primarily due to net actuarial gains as well as the amortization of actuarial losses, partially offset by the adverse impact of currency and plan remeasurements.
Refer to Note 19 - Other Comprehensive Income (Loss) in the Condensed Consolidated Financial Statements for the components of Other Comprehensive Income (Loss), Note 14 - Financial Instruments in the Condensed Consolidated Financial Statements for additional information regarding unrealized gains (losses), net, and Note 16 - Employee Benefit Plans in the Condensed Consolidated Financial Statements for additional information regarding net changes in our defined benefit plans.
Xerox 2024 Form 10-Q 58

Reportable Segments
Our business is organized to ensure we focus on efficiently managing operations while serving our customers and the markets in which we operate. We have two operating and reportable segments – Print and Other and Xerox Financial Services (XFS). Refer to Note 4 - Segment Reporting in the Condensed Consolidated Financial Statements for additional information regarding our reportable segments.
Segment Review
Three Months Ended September 30,
(in millions)External Revenue
Intersegment Revenue(1)
Total Segment Revenue% of Total Revenue Segment Profit
Segment Margin(2)
2024
Print and Other$1,440 $17 $1,457 94 %$67 4.7 %
XFS88 — 88 6 %13 14.8 %
Total$1,528 $17 $1,545 100 %$80 5.2 %
2023
Print and Other$1,554 $21 $1,575 94 %$64 4.1 %
XFS98 — 98 6 %4 4.1 %
Total$1,652 $21 $1,673 100 %$68 4.1 %
Nine Months Ended September 30,
(in millions)External Revenue
Intersegment Revenue(1)
Total Segment Revenue% of Total RevenueSegment Profit
Segment Margin(2)
2024
Print and Other$4,340 $55 $4,395 94 %$181 4.2 %
XFS268 — 268 6 %17 6.3 %
Total$4,608 $55 $4,663 100 %$198 4.3 %
2023
Print and Other$4,820 $65 $4,885 94 %$271 5.6 %
XFS301 — 301 6 %22 7.3 %
Total$5,121 $65 $5,186 100 %$293 5.7 %
___________
(1)Reflects revenue, primarily commissions and other payments, made by the XFS segment to the Print and Other segment for the lease of Xerox equipment placements.
(2)Segment margin based on external revenue only.
Print and Other
Print and Other includes the design, development and sale of document management systems, solutions and services as well as associated technology offerings including Digital and IT services and software.
Revenue
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)20242023%
Change		20242023%
Change
Equipment sales$335 $381 (12.1)%$971 $1,180 (17.7)%
Post sale revenue 1,105 1,173 (5.8)%3,369 3,640 (7.4)%
Intersegment revenue (1)
17 21 (19.0)%55 65 (15.4)%
Total Print and Other Revenue$1,457 $1,575 (7.5)%$4,395 $4,885 (10.0)%
_____________
(1)Reflects revenue, primarily commissions and other payments, made by the XFS segment to the Print and Other segment for the lease of Xerox equipment placements.
Third quarter 2024 Print and Other segment revenue decreased 7.5% as compared to third quarter 2023, and Print and Other segment revenue decreased 10.0% for the nine months ended September 30, 2024 as compared to the prior year period. Print and Other segment revenue included the following:
Xerox 2024 Form 10-Q 59

Equipment sales revenue decreased 12.1% during the third quarter 2024 as compared to third quarter 2023, and was primarily attributable to a delay in the global launch of two new products, lower-than-expected improvements in sales productivity, unfavorable mix, and a large production equipment sale in the prior year. Equipment sales revenue was also impacted by the effects of backlog fluctuations in the current and prior year quarters, and non-strategic reductions in revenue, including geographic simplification. Revenue declined across all product groups, and was most pronounced in Mid-range, driven by declines in entry production color products.
Equipment sales revenue decreased 17.7% for the nine months ended September 30, 2024 as compared to the prior year period and was primarily impacted by unfavorable mix, as well as the effects of backlog fluctuations in the current and prior year quarters, non-strategic reductions in revenue, including offering and geographic simplification, and lower-than-expected improvements in sales productivity. Revenue declined across all product groups, and was most pronounced in Mid-range, driven by declines in A3 color multi-function printers.
Post sale revenue decreased 5.8% during the third quarter 2024 as compared to third quarter 2023, primarily due to the decline in contractual print services1 revenue. Contractual print services1 revenue declined mid-single digits as compared to third quarter 2023, driven by lower service and outsourcing revenue, as well as reductions in non-strategic, lower margin IT endpoint device placements, rental revenue and paper sales, as well as the effects of geographic simplification. These impacts were partially offset by higher supplies revenue and digital services revenue.
Post sale revenue decreased 7.4% for the nine months ended September 30, 2024 as compared to the prior year period. Contractual print services1 revenue declined, driven by lower service and outsourcing revenue, as well as reductions in non-strategic, lower margin IT endpoint device placements and paper sales, as well as the termination of the Fuji royalty income and PARC revenue, and the effects of geographic simplification.
_____________
(1)Includes revenues from Services, maintenance and rentals.
Detail by product group is shown below.
 Three Months Ended
September 30,		Nine Months Ended
September 30,		% of Equipment Sales
(in millions)20242023
%
Change
CC % Change20242023% ChangeCC % Change20242023
Entry$53 $56 (5.4)%(4.4)%$154 $181 (14.9)%(14.6)%16%15%
Mid-range224 260 (13.8)%(13.4)%652 782 (16.6)%(16.6)%66%65%
High-end57 67 (14.9)%(15.1)%164 222 (26.1)%(26.2)%17%19%
Other5 3 66.7%66.7%15 12 25.0%25.0%1%1%
Equipment sales(1)(2)
$339 $386 (12.2)%(12.2)%$985 $1,197 (17.7)%(17.7)%100%100%
_____________
CC - See "Currency Impact" section for a description of constant currency.
(1)Refer to the Products and Offerings Definitions section.
(2)Includes equipment sales related to the XFS segment of $4 million and $5 million for the three months ended September 30, 2024 and 2023, respectively, and $14 million and $17 million for the nine months ended September 30, 2024 and 2023, respectively.
The change at constant currency1 reflected the effects of non-strategic reductions in revenue, including offering and geographic simplification, as well as the following:
•Entry - The decrease for the three months ended September 30, 2024 reflects declines in color and a mix toward black-and-white installs. The decrease for the nine months ended September 30, 2024 primarily reflects higher backlog reductions in the prior year period, as well as constraints in Entry, A4 devices during the first quarter of 2024.
•Mid-range - The decrease for the three months ended September 30, 2024 reflects declines in color, driven primarily by a mix within color toward lower-price A3 color devices. The decrease for the nine months ended September 30, 2024 reflects higher backlog reductions in the prior year period, as well as declines in color devices.
•High-end - The decrease for the three months ended September 30, 2024 was primarily due to lower color installations, and an unfavorable mix toward black-and-white. The decrease for the nine months ended September 30, 2024 was primarily due to higher backlog reductions in the prior year period, as well as lower an unfavorable mix toward black-and-white.
_____________
(1)Refer to the “Currency Impact” section for a description of constant currency.

Xerox 2024 Form 10-Q 60

Total Installs
Installs reflect new placements of devices only (i.e., measure does not take into account removal of devices which may occur as a result of contract renewals or cancellations). Revenue associated with equipment installations may be reflected up-front in Equipment sales or over time either through rental income or as part of our services revenues (which are both reported within our post sale revenues), depending on the terms and conditions of our agreements with customers. Installs include activity for Xerox and non-Xerox branded products installed by our XBS sales unit. Detail by product group (see Products and Offerings Definitions) is shown below.
Installs for the three months ended September 30, 2024 as compared to prior year period reflect the following:
Entry
•4% decrease in entry color installs, driven by declines in Entry Color Printers, partially offset by growth in A4 Color MFPs.
•34% increase in entry black-and-white installs, driven by growth in A4 Mono MFPs.
Mid-Range
•3% increase in mid-range color installs driven by growth in A3 Color MFPs, partially offset by declines in Entry Production Color Low.
•12% decrease in mid-range black-and-white installs driven primarily by A3 Mono MFPs.
High-End
•22% decrease in high-end color installs primarily reflecting declines in Entry Production Color Mid and High.
•29% increase in high-end black-and-white primarily reflecting growth in High End Cut Sheet products.
Installs for the nine months ended September 30, 2024 as compared to prior year period reflect the following:
Entry
•20% decrease in entry color installs, with A4 Color MFPs driving the majority of the decline.
•11% decrease in entry black-and-white installs, with Entry Mono printers driving the majority of the decline.
Mid-Range
•10% decrease in mid-range color installs, driven primarily by declines in A3 Color MFPs.
•24% decrease in mid-range black-and-white installs, driven primarily by A3 Mono MFPs.
High-End
•30% decrease in high-end color installs primarily reflecting declines in Entry Production Color Mid.
•2% decrease in high-end black-and-white reflecting declines in High End Cut Sheet products.
Products and Offerings Definitions
Our product groupings range from:
•“Entry”, which include A4 devices and desktop printers and multifunction devices that primarily serve small and medium workgroups/work teams.
•“Mid-Range”, which include A3 devices that generally serve large workgroup/work teams environments as well as products in the Light Production product groups serving centralized print centers, print for pay and lower volume production print establishments.
•“High-End”, which include production printing and publishing systems that generally serve the graphic communications marketplace and print centers in large enterprises.
Segment Margin
Third quarter 2024 Print and Other segment margin of 4.7% increased by 0.6-percentage points as compared to third quarter 2023, primarily due to lower Selling, administrative and general expenses, including lower incentive compensation expenses, as well as benefits of cost and productivity savings, higher supplies revenue and favorable currency. This activity was partially offset by lower revenue, higher transportation costs, and the release of a tariff-related accrual in the prior year period.
Print and Other segment margin of 4.2% for the nine months ended September 30, 2024 decreased 1.4-percentage points as compared to the prior year period. The decrease is primarily due to lower revenue, higher transportation and product costs, and higher bad debts expense. These adverse impacts were partially offset by lower Selling and other administrative and general expenses, and lower RD&E expense, as well as higher supplies revenue, favorable currency, and the benefits of cost and productivity savings.
Xerox 2024 Form 10-Q 61

Xerox Financial Services
Xerox Financial Services (XFS) represents a global financing solutions business, primarily enabling the sale of our equipment and services.
Revenue
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)20242023%
Change		20242023%
Change
Equipment sales$4 $5 (20.0)%$14 $17 (17.6)%
Financing38 46 (17.4)%118 147 (19.7)%
Other Post sale revenue(1)
46 47 (2.1)%136 137 (0.7)%
Total XFS Revenue$88 $98 (10.2)%$268 $301 (11.0)%
_____________
(1)Other Post sale revenue includes lease renewal and fee income as well as gains, commissions and servicing revenue associated with sold finance receivables.
Third quarter 2024 XFS segment revenue decreased 10.2% as compared to third quarter 2023, and for the nine months ended September 30, 2024 segment revenue decreased 11.0% as compared to the prior year period and reflected the following:
Financing revenue is generated from direct and indirectly financed Xerox equipment sale transactions. For the three months ended September 30, 2024, these revenues decreased 17.4% as compared to third quarter 2023, including a 0.2-percentage point benefit from currency. Financing revenue for the nine months ended September 30, 2024 decreased 19.7% as compared to the prior year period, including a 0.2-percentage point benefit from currency. The decline at constant currency1 for both the three and nine months ended September 30, 2024, respectively, reflects a continued reduction of the average finance receivables balance in 2024 as a result of the sales of finance receivables in recent quarters to HPS Investment Partners (HPS), as well as lower originations. Finance receivables are approximately $630 million lower in September of 2024 as compared to September of 2023.
Other Post sale revenue decreased 2.1% as compared to third quarter 2023, and for the nine months ended September 30, 2024 decreased 0.7% as compared to the prior year period, as a result of the continued reduction of our average finance receivables balance. Other Post sale revenue includes gains, commissions and servicing revenue on sales of finance receivables under our finance receivables funding agreement, which were $10 and $7 for the three months ended September 30, 2024 and 2023, respectively, and $31 and $21 for the nine months ended September 30, 2024 and 2023, respectively.
_____________
(1)Refer to the “Currency Impact” section for a description of constant currency.
Segment Margin
Third quarter 2024 XFS segment margin of 14.8% increased 10.7-percentage points as compared to third quarter 2023. Segment profit for XFS was $9 million higher as compared to third quarter 2023 mainly due to lower Selling administrative and general expenses, as well as a lower bad debt provision, partially offset by lower revenues from reduced assets.
XFS segment margin of 6.3% for the nine months ended September 30, 2024 decreased 1.0-percentage points as compared to the prior year period. Segment profit for XFS was $5 million lower as compared to the prior year period mainly due to lower revenue from reduced assets and higher bad debt expense of $12 million as compared to the prior year period. These adverse impacts were partially offset by lower administrative and general expenses.
Xerox 2024 Form 10-Q 62

Capital Resources and Liquidity
The following is a summary of our liquidity position:
•As of September 30, 2024 and December 31, 2023, total cash, cash equivalents and restricted cash of Xerox Holdings Corporation were $590 million and $617 million, respectively, and apart from restricted cash of $69 million and $98 million at September 30, 2024 and December 31, 2023, respectively, was readily accessible for use. The decrease in total cash, cash equivalents and restricted cash of $27 million primarily reflects net cash used in financing activities of $149 million, as well as net cash used in investing activities of $26 million, both of which were partially offset by net cash provided by operating cash activities of $160 million.
•Total debt at September 30, 2024 was $3,271 million, of which $1,963 million is allocated to and supports the Company's finance assets. The remaining debt of $1,308 million is attributable to the non-financing business and increased from $849 million at December 31, 2023. Debt consists of senior unsecured notes, secured borrowings through the securitization of finance assets, and borrowings under a Term Loan B facility.
•In March 2024, Xerox Holdings Corporation issued $500 million of 8.875% Senior Notes due in 2029, as well as an aggregate $400 million of 3.75% Convertible Senior Notes due in 2030. In connection with the issuance of the 2030 Notes, the Company entered into privately negotiated capped call transactions, with the option counterparties, including certain of the initial purchasers of the 2030 Notes or their respective affiliates at a cost of approximately $23 million. A portion of the aggregate net proceeds were used to repay, via tender offer, approximately $84 million of the 3.80% Xerox Corporation Senior Notes due in 2024 and approximately $362 million of the 5.00% Xerox Holdings Corporation Senior Notes due in 2025. The remaining outstanding 3.80% Senior Notes that were not redeemed as part of the Senior Notes tender offer were repaid in May 2024. Approximately $388 million, which is the remaining portion of our 5.00% Senior Notes, is due in August 2025.
•In June 2024 we amended our ABL facility dated as of May 22, 2023, to (i) increase the commitments of the lenders under the ABL Credit Agreement from $300 million to $425 million and (ii) amend the excess availability used to trigger the fixed charge coverage ratio springing covenant from an amount equal to the greater of (A) $22.5 and (B) 10% of the Line Cap (the lesser of the aggregate amount of Revolving Commitments and the then-applicable Borrowing Base), to an amount equal to the greater of (A) $31.875 million and (B) 10% of the Line Cap. Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt activity.
•As of September 30, 2024, there were no borrowings or letters of credit outstanding under our ABL facility, under which we can borrow up to a maximum of $425 million. We were in full compliance with the covenants and other provisions of the ABL Facility.
•As a result of our lowered guidance, we now expect Operating cash flows for 2024 to be within a range of $490 million to $540 million, versus prior guidance of at least $600 million, reflecting the after-tax effects of the reduction in adjusted1 operating income guidance. We now expect capital expenditures to be approximately $40 million, as compared to previous guidance of approximately $50 million.
____________________________
(1)Refer to the “Non-GAAP Financial Measures” section for an explanation of the non-GAAP financial measure.
Xerox 2024 Form 10-Q 63

Cash Flow Analysis
The following summarizes our cash, cash equivalents and restricted cash:
 Nine Months Ended
September 30,		Change
(in millions)20242023
Net cash provided by operating activities$160 $297 $(137)
Net cash (used in) provided by investing activities(26)3 (29)
Net cash used in financing activities(149)(819)670 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(12)(3)(9)
Decrease in cash, cash equivalents and restricted cash(27)(522)495 
Cash, cash equivalents and restricted cash at beginning of period617 1,139 (522)
Cash, Cash Equivalents and Restricted Cash at End of Period$590 $617 $(27)
Cash Flows from Operating Activities
Net cash provided by operating activities was $160 million for the nine months ended September 30, 2024. The $137 million decrease in operating cash from the prior year period was primarily due to the following:
•$88 million decrease in pre-tax income before depreciation and amortization, provisions, gains on sales of businesses and assets, divestitures, PARC donation, stock-based compensation, goodwill impairment charge, restructuring and related costs, net and non-service retirement-related costs.
•$186 million decrease from inventory primarily due to higher purchases related to a change in contractual terms with a large OEM vendor and decreased sales of equipment and supplies.
•$94 million decrease from accrued compensation due to the timing of payments of higher year-end accruals.
•$53 million decrease from higher restructuring and related payments.
•$39 million decrease from higher pension contributions.
•$147 million increase from accounts payable primarily due to the timing of supplier and vendor payments.
•$77 million increase from other current and long-term liabilities due to timing of payments.
•$65 million increase from accounts receivable primarily due to the timing of collections.
•$31 million increase due to lower placements of equipment on operating leases.
Cash Flows from Investing Activities
Net cash used in investing activities was $26 million for the nine months ended September 30, 2024. The $29 million change from the prior year period was primarily due to noncontrolling investments as part of our corporate venture capital fund and lower proceeds from the sale of assets.
Cash Flows from Financing Activities
Net cash used in financing activities was $149 million for the nine months ended September 30, 2024. The $670 million decrease in the use of cash from the prior year period was primarily due to the following:
•$541 million decrease from share repurchases.
•$124 million decrease from net debt activity. 2024 reflects proceeds of $500 million on Senior Notes and $400 million on Convertible Senior Notes offset by net payments of $658 million on Senior Notes, deferred debt issuance costs of $18 million from Senior Notes issuances, $211 million on secured financing arrangements and $21 million on the Term Loan B facility. The $658 million of net payments on Senior Notes includes $300 million on Senior Notes maturing in May 2024 and $362 million for the early redemption of 2025 Senior Notes offset by early redemption premium of $4 million. 2023 reflects net proceeds of $549 million from the Loan Facility, used to fund the share repurchase, and $213 million from the ABL Facility, which include debt issuance costs payments of $6 million and $7 million, respectively, and net proceeds of $52 million from the refinance of our Canadian secured loan. These borrowings were offset by payments of $644 million on secured financing arrangements and $300 million on Senior Notes. The $644 million of payments on secured financing arrangements includes the early repayment of $185 million U.S. secured borrowing.
•$24 million decrease from common stock dividends due to lower outstanding shares.
•$23 million increase from purchases of capped calls.
Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt activity.
Xerox 2024 Form 10-Q 64

Cash, Cash Equivalents and Restricted Cash
Refer to Note 12 - Supplementary Financial Information in the Condensed Consolidated Financial Statements for additional information regarding Cash, cash equivalents and restricted cash.
Operating Leases
We have operating leases for real estate and vehicles in our domestic and international operations, and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to ten years and a variety of renewal and/or termination options. As of September 30, 2024 and December 31, 2023, total operating lease liabilities were $177 million and $182 million, respectively.
Refer to Note 10 - Lessee in the Condensed Consolidated Financial Statements for additional information regarding our leases accounted for under lessee accounting.
Debt and Customer Financing Activities
The following summarizes our debt:
(in millions)September 30, 2024December 31, 2023
Xerox Holdings Corporation$2,038 $1,500 
Xerox Corporation1,129 1,450 
Xerox - Other Subsidiaries(1)
148 361 
Subtotal - Principal debt balance3,315 3,311 
Debt issuance costs
Xerox Holdings Corporation(20)(6)
Xerox Corporation(11)(12)
Xerox - Other Subsidiaries(1)
— (1)
Subtotal - Debt issuance costs(31)(19)
Net unamortized premium(13)(15)
Total Debt$3,271 $3,277 
_____________
(1)Represents secured debt issued by subsidiaries of Xerox Corporation as part of the securitization of Finance Receivables.
Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt.
Finance Assets and Related Debt
The following represents our total finance assets, net associated with our lease and finance operations:
(in millions)September 30, 2024December 31, 2023
Total finance receivables, net(1)
$1,989 $2,510 
Equipment on operating leases, net255 265 
Total Finance Assets, net(2)
$2,244 $2,775 
_____________
(1)Includes (i) Billed portion of finance receivables, net, (ii) Finance receivables, net and (iii) Finance receivables due after one year, net as included in our Condensed Consolidated Balance Sheets.
(2)The change from December 31, 2023 includes a decrease of $11 million due to currency.
Xerox 2024 Form 10-Q 65

Our lease contracts permit customers to pay for equipment over time rather than at the date of installation; therefore, we maintain a certain level of debt (that we refer to as financing debt) to support our investment in these lease contracts, which are reflected in Total finance assets, net. For this financing aspect of our business, we maintain an assumed 7:1 leverage ratio of debt to equity as compared to our finance assets.
Based on this leverage, the following represents the breakdown of total debt between financing debt and core debt:
(in millions)September 30, 2024December 31, 2023
Finance receivables debt(1)
$1,740 $2,196 
Equipment on operating leases debt223 232 
Financing debt1,963 2,428 
Core debt1,308 849 
Total Debt$3,271 $3,277 
__________________
(1)Finance receivables debt is the basis for our calculation of "Cost of financing" expense in the Condensed Consolidated Statements of Income (Loss).
Sales of Finance Receivables and Third Party Leasing Programs
Refer to Note 8 - Finance Receivables, Net and Note 22 - Subsequent Events in the Condensed Consolidated Financial Statements for additional information regarding our sales of finance receivables and our third party leasing programs.
Capital Market/Debt Activity
Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding our debt activity.
Liquidity and Financial Flexibility
We manage our worldwide liquidity using internal cash management practices, which are subject to i) the statutes, regulations and practices of each of the local jurisdictions in which we operate, ii) the legal requirements of the agreements to which we are a party, and iii) the policies and cooperation of the financial institutions we utilize to maintain and provide cash management services.
Our principal debt maturities are spread over the next five years as follows:
(in millions)Xerox Holdings CorporationXerox Corporation
Xerox - Other Subsidiaries(1)
Total
2024 Q4$— $7 $29 $36 
2025388 28 103 519 
2026— 41 16 57 
2027— 55 — 55 
2028750 55 — 805 
2029 and thereafter900 943 — 1,843 
Total$2,038 $1,129 $148 $3,315 
_____________
(1)Represents secured debt issued by subsidiaries of Xerox Corporation as part of the securitization of Finance Receivables.
Refer to Note 13 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt.
Treasury Stock
Xerox Holdings Corporation made no open-market repurchases of its Common Stock during 2024.
Xerox 2024 Form 10-Q 66

Commitments
Technology
In the second quarter 2024, Xerox entered into a seven year agreement with Tata Consulting Services (TCS), for the purpose of consolidating Xerox’s technology services to improve business outcomes, migrate legacy data centers to the cloud, deploy a cloud-based digital ERP platform to transform business processes, and incorporate generative artificial intelligence (GenAI) into operations to help drive sustainable growth. The agreement expands Xerox's existing partnership with TCS, who currently provides business processing outsourcing services in support of our global finance and accounting organization; there were no changes to the terms of the business processing outsourcing services agreement. Xerox can terminate the arrangement with 90 days notice, subject to payment of a termination fee.
In connection with the technology agreement with TCS, Xerox also entered into seven year agreements with both SAP Limited (SAP), who will provide Xerox with a cloud-based digital ERP platform, and Microsoft, who will provide their Azure cloud platform services.
In the second quarter 2024, Xerox entered into a five year agreement with Verizon Business Services (Verizon) to provide their Network as a Service (NaaS) solutions framework as part of Xerox's Reinvention. Under the terms of the agreement, Verizon will provide a secure network platform solution delivering network services to Xerox business locations globally.
Shared Service Arrangement
In the third quarter 2024, Xerox entered into an agreement with HCL Technologies Limited (HCL), to renew and extend the original shared services arrangement contract, entered into in 2019, in which HCL provides certain global administrative and support functions to Xerox. In addition to the existing shared services arrangement, HCL will support Xerox's Global Business Services (GBS) organization with professional services support, sales efficiency, and remote problem-solving. Xerox can terminate the arrangement at any time starting in July 2025, subject to payment of termination fees that decline over the term, or for cause.
The approximate aggregate spending commitments are as follows:
(in millions)September 30, 2024Agreement Term
HCL(1)
$590 5 Years
TCS(1)
490 7 Years
Microsoft125 7 Years
SAP50 7 Years
Verizon85 5 Years
_____________
(1)Represents all contractual arrangements between Xerox and the vendor as of September 30, 2024.
Xerox 2024 Form 10-Q 67

Financial Risk Management
We are exposed to market risk from foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. We utilize derivative financial instruments to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including interest rate swap agreements, interest rate caps, foreign currency spot, forward and swap contracts and net purchased foreign currency options to manage interest rate and foreign currency exposures. Our primary foreign currency market exposures include the Euro, U.K. Pound Sterling and Japanese Yen. The fair market values of all our derivative contracts change with fluctuations in interest rates and/or currency exchange rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities.
We are required to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. As permitted, certain of these derivative contracts have been designated for hedge accounting treatment. Certain of our derivatives that do not qualify for hedge accounting are effective as economic hedges. These derivative contracts are likewise required to be recognized each period at fair value and therefore do result in some level of volatility. The level of volatility will vary with the type and amount of derivative hedges outstanding, as well as fluctuations in the currency and interest rate markets during the period. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities.
By their nature, all derivative instruments involve, to varying degrees, elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange and interest rate movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with a diversified group of major financial institutions. Further, our policy is to deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties.
The current market events have not required us to materially modify or change our financial risk management strategies with respect to our exposures to interest rate and foreign currency risk. Refer to Note 14 – Financial Instruments in the Condensed Consolidated Financial Statements for further discussion and information on our financial risk management strategies.
Non-GAAP Financial Measures
We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with GAAP, to exclude the effects of certain items as well as their related income tax effects.
However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are set forth below.
Adjusted Earnings Measures
•Adjusted Net Income and Earnings per Share (EPS)
•Adjusted Effective Tax Rate
Xerox 2024 Form 10-Q 68

The above measures were adjusted for the following items:
Restructuring and related costs, net: Restructuring and related costs, net include restructuring and asset impairment charges as well as costs associated with our transformation programs beyond those normally included in restructuring and asset impairment charges. Restructuring consists of costs primarily related to severance and benefits paid to employees pursuant to formal restructuring and workforce reduction plans. Asset impairment includes costs incurred for those assets sold, abandoned or made obsolete as a result of our restructuring actions, exiting from a business or other strategic business changes. Additional costs for our transformation programs are primarily related to the implementation of strategic actions and initiatives and include third-party professional service costs as well as one-time incremental costs. All of these costs can vary significantly in terms of amount and frequency based on the nature of the actions as well as the changing needs of the business. Accordingly, due to that significant variability, we will exclude these charges since we do not believe they provide meaningful insight into our current or past operating performance, nor do we believe they are reflective of our expected future operating expenses as such charges are expected to yield future benefits and savings with respect to our operational performance.
Amortization of intangible assets: The amortization of intangible assets is driven by our acquisition activity which can vary in size, nature and timing as compared to other companies within our industry and from period to period. The use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
Non-service retirement-related costs: Our defined benefit pension and retiree health costs include several elements impacted by changes in plan assets and obligations that are primarily driven by changes in the debt and equity markets as well as those that are predominantly legacy in nature and related to employees who are no longer providing current service to the Company (e.g. retirees and ex-employees). These elements include (i) interest cost, (ii) expected return on plan assets, (iii) amortization of prior plan amendments, (iv) amortized actuarial gains/losses and (v) the impacts of any plan settlements/curtailments. Accordingly, we consider these elements of our periodic retirement plan costs to be outside the operational performance of the business or legacy costs and not necessarily indicative of current or future cash flow requirements. This approach is consistent with the classification of these costs as non-operating in Other expenses, net. Adjusted earnings will continue to include the service cost elements of our retirement costs, which is related to current employee service as well as the cost of our defined contribution plans.
Transaction and related costs, net: Transaction and related costs, net are costs and expenses primarily associated with certain major or significant strategic M&A projects. These costs are primarily for third-party legal, accounting, consulting and other similar type professional services as well as potential legal settlements that may arise in connection with those M&A transactions. These costs are considered incremental to our normal operating charges and were incurred or are expected to be incurred solely as a result of the planned transactions. Accordingly, we are excluding these expenses from our Adjusted Earnings Measures in order to evaluate our performance on a comparable basis.
Discrete, unusual or infrequent items: We exclude these item(s), when applicable, given their discrete, unusual or infrequent nature and their impact on the comparability of our results for the period to prior periods and future expected trends.
•Goodwill impairment charge
•Inventory-related impact - exit of certain production print manufacturing operations
•Divestitures
•PARC donation
•(Gain) loss on early extinguishment of debt
•Tax Indemnification - Conduent
•Deferred tax asset valuation allowance
Adjusted Operating Income and Margin
We calculate and utilize adjusted operating income and margin measures by adjusting our reported pre-tax income (loss) and margin amounts. In addition to the costs and expenses noted above as adjustments for our adjusted earnings measures, adjusted operating income and margin also exclude the remaining amounts included in Other expenses, net, which are primarily non-financing interest expense and certain other non-operating costs and expenses. We exclude these amounts in order to evaluate our current and past operating performance and to better understand the expected future trends in our business.
Constant Currency (CC)
Refer to "Currency Impact" for a discussion of this measure and its use in our analysis of revenue growth.
Xerox 2024 Form 10-Q 69

Adjusted Net Income and EPS reconciliation:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in millions, except per share amounts)Net (Loss) IncomeDiluted EPSNet IncomeDiluted EPSNet (Loss) IncomeDiluted EPSNet IncomeDiluted EPS
Reported(1)
$(1,205)$(9.71)$49 $0.28 $(1,300)$(10.55)$59 $0.30 
Adjustments:
Goodwill impairment1,058 — 1,058 — 
Inventory-related impact - exit of certain production print manufacturing operations(2)
— — 44 — 
Restructuring and related costs, net56 10 107 35 
Amortization of intangible assets10 12 30 33 
Divestitures— — 51 — 
PARC donation— — — 132 
Non-service retirement-related costs25 4 74 14 
Transaction and related costs, net(15)— (38)— 
(Gain) loss on early extinguishment of debt— — (3)3 
Tax indemnification - Conduent— (7)— (7)
Income tax on Goodwill impairment(43)— (43)— 
Income tax on PARC donation(3)
— — — (40)
Deferred tax asset valuation allowance(3)
161 — 161 — 
Income tax on adjustments(3)
(13)9 (55)2 
Adjusted$34 $0.25 $77 $0.46 $86 $0.60 $231 $1.39 
Dividends on preferred stock used in adjusted EPS calculation(4)
$4 $4 $11 $11 
Weighted average shares for adjusted EPS(4)
126 159 126 158 
Fully diluted shares at September 30, 2024(5)
126 
 ____________________________
(1)Net (Loss) Income and EPS. For the three and nine months ended September 30, 2024 Net (Loss) and EPS includes an after-tax non-cash goodwill impairment charge of approximately $1,015 million (approximately $1,058 million pre-tax), or $8.16 per diluted share. In addition, the three and nine months ended September 30, 2024 includes a tax expense charge of $161 million, or $1.29 per diluted share, related to the establishment of a valuation allowance against certain deferred tax assets to reflect their realizability. This adjustment was excluded due to its unique nature and significant impact which is not considered part of our core operations.
(2)Reflects the reduction of inventory of approximately $0 and $38 and the cancellation of related purchase contracts of approximately $0 and $6, as a result of the exit of certain production print manufacturing operations during the three and nine months ended September 30, 2024, respectively.
(3)Refer to Adjusted Effective Tax Rate reconciliation.
(4)For those periods that include the preferred stock dividend, the average shares for the calculations of diluted EPS exclude the 7 million shares associated with our Series A convertible preferred stock.
(5)Reflects common shares outstanding at September 30, 2024, plus potential dilutive common shares used for the calculation of adjusted diluted EPS for the third quarter 2024. Excludes shares associated with our Series A convertible preferred stock, which were anti-dilutive for the third quarter 2024 and 2023, respectively.

Xerox 2024 Form 10-Q 70

Adjusted Effective Tax Rate reconciliation:
Three Months Ended September 30,
20242023
(in millions)Pre-Tax (Loss) IncomeIncome Tax ExpenseEffective
Tax Rate		Pre-Tax IncomeIncome Tax ExpenseEffective
Tax Rate
Reported(1)
$(1,087)$118 (10.9)%$64 $15 23.4 %
Goodwill impairment(2)
1,058 43 — — 
Deferred tax asset valuation allowance(2)
— (161)— — 
Non-GAAP Adjustments(2)
76 13 19 (9)
Adjusted(3)
$47 $13 27.7 %$83 $6 7.2 %
Nine Months Ended September 30,
20242023
(in millions)Pre-Tax (Loss) IncomeIncome Tax ExpenseEffective
Tax Rate		Pre-Tax IncomeIncome Tax ExpenseEffective
Tax Rate
Reported(1)
$(1,212)$88 (7.3)%$60 $1 1.7 %
Goodwill impairment(2)
1,058 43 — — 
Deferred tax asset valuation allowance(2)
— (161)— — 
PARC donation(2)
— — 132 40 
Non-GAAP Adjustments(2)
265 55 78 (2)
Adjusted(3)
$111 $25 22.5 %$270 $39 14.4 %
____________________________
(1)Pre-tax (loss) income and Income tax expense. For the three and nine months ended September 30, 2024 Pre-tax (loss) includes a non-cash goodwill impairment charge of approximately $1,058 million (approximately $1,015 million after-tax).
(2)Refer to Adjusted Net Income and EPS reconciliation for details.
(3)The tax impact on Adjusted Pre-tax income is calculated under the same accounting principles applied to the Reported Pre-tax (loss) income under ASC 740, which employs an annual effective tax rate method to the results.
Xerox 2024 Form 10-Q 71

Adjusted Operating Income and Margin reconciliation:
 Three Months Ended September 30,
20242023
(in millions)(Loss) ProfitRevenueMarginProfitRevenueMargin
Reported(1)
$(1,205)$1,528 $49 $1,652 
Income tax expense118 — 15 — 
Pre-tax (loss) income$(1,087)$1,528 (71.1)%$64 $1,652 3.9 %
Adjustments:
Goodwill impairment1,058 — 
Restructuring and related costs, net56 10 
Amortization of intangible assets10 12 
Other expenses, net(3)
43 (18)
Adjusted$80 $1,528 5.2 %$68 $1,652 4.1 %
Nine Months Ended September 30,
20242023
(in millions)(Loss) ProfitRevenueMarginProfitRevenueMargin
Reported(1)
$(1,300)$4,608 $59 $5,121 
Income tax expense88 1 
Pre-tax (loss) income$(1,212)$4,608 (26.3)%$60 $5,121 1.2 %
Adjustments:
Goodwill impairment1,058 — 
Inventory-related impact - exit of certain production print manufacturing operations(2)
44 — 
Restructuring and related costs, net107 35 
Amortization of intangible assets30 33 
Divestitures51 — 
PARC donation— 132 
Other expenses, net(3)
120 33 
Adjusted$198 $4,608 4.3 %$293 $5,121 5.7 %
____________________________
(1)Net (Loss) Income. For the three and nine months ended September 30, 2024 Net (Loss) includes an after-tax non-cash goodwill impairment charge of approximately $1,015 million (approximately $1,058 million pre-tax), or $8.16 per diluted share. In addition, the three and nine months ended September 30, 2024 includes a tax expense charge of $161 million, or $1.29 per diluted share, related to the establishment of a valuation allowance against certain deferred tax assets to reflect their realizability. This adjustment was excluded due to its unique nature and significant impact which is not considered part of our core operations.
(2)Reflects the reduction of inventory of approximately $0 and $38 and the cancellation of related purchase contracts of approximately $0 and $6, as a result of the exit of certain production print manufacturing operations during the three and nine months ended September 30, 2024, respectively.
(3)Includes non-service retirement-related costs.
Xerox 2024 Form 10-Q 72

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information set forth under the “Financial Risk Management” section of this Quarterly Report on Form 10-Q is hereby incorporated by reference in answer to this Item.
 
ITEM 4 — CONTROLS AND PROCEDURES
(a)Evaluation of Disclosure Controls and Procedures
Xerox Holdings Corporation
The management of Xerox Holdings Corporation evaluated, with the participation of its principal executive officer and principal financial officer, or persons performing similar functions, the effectiveness of its disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, the principal executive officer and principal financial officer of Xerox Holdings Corporation have concluded that, as of the end of the period covered by this report, the disclosure controls and procedures of Xerox Holdings Corporation were effective to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms relating to Xerox Holdings Corporation, including its consolidated subsidiaries, and was accumulated and communicated to the management of Xerox Holdings Corporation, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. 
Xerox Corporation
The management of Xerox Corporation evaluated, with the participation of its principal executive officer and principal financial officer, or persons performing similar functions, the effectiveness of its disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, the principal executive officer and principal financial officer of Xerox Corporation have concluded that, as of the end of the period covered by this report, the disclosure controls and procedures of Xerox Corporation were effective to ensure that information required to be disclosed in the reports that or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms relating to Xerox Corporation, including its consolidated subsidiaries, and was accumulated and communicated to the management of Xerox Corporation, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. 
(b)Changes in Internal Controls
Xerox Holdings Corporation
As required by paragraph (d) of Rule 13a-15 under the Exchange Act, we evaluated changes in our internal control over financial reporting during the last fiscal quarter. There were no changes identified in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Xerox Corporation
As required by paragraph (d) of Rule 13a-15 under the Exchange Act, we evaluated changes in our internal control over financial reporting during the last fiscal quarter. There were no changes identified in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Xerox 2024 Form 10-Q 73

PART II — OTHER INFORMATION
ITEM 1 — LEGAL PROCEEDINGS
The information set forth under Note 21 – Contingencies and Litigation in the Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q is incorporated by reference in answer to this item.
ITEM 1A — RISK FACTORS
Reference is made to the Risk Factors set forth in Part I, Item 1A of the combined Xerox Holdings Corporation and Xerox Corporation Annual Report on Form 10-K for the year ended December 31, 2023.
ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(b) Issuer Purchases of Equity Securities during the Quarter ended September 30, 2024
Repurchases of Xerox Holdings Corporation's Common Stock, par value $1 per share, include the following:
Board Authorized Share Repurchase Program:
There were no repurchases of Xerox Holdings Corporation's Common Stock for the quarter ended September 30, 2024 pursuant to share repurchase programs authorized by Xerox Holdings’ Board of Directors.
Repurchases Related to Stock Compensation Programs(1):
Total Number of Shares Purchased
Average Price Paid per Share(2)
Total Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsMaximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
July 1 through 316,536 $11.58 n/an/a
August 1 through 3127,019 10.14 n/an/a
September 1 through 30— — n/an/a
Total33,555 
 ____________________________
(1)These repurchases are made under a provision in our restricted stock compensation programs for the indirect repurchase of shares through a net-settlement feature upon the vesting of shares in order to satisfy minimum statutory tax-withholding requirements.
(2)Exclusive of fees and expenses.
ITEM 3 — DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 — MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5 — OTHER INFORMATION
Rule 10b5-1 Trading Plans
None of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this report.


Xerox 2024 Form 10-Q 74

ITEM 6 — EXHIBITS
施乐2024年第10-Q表格 75

101.INS行内XBRL实例文档
101.SCHInline XBRL分类扩充模式文件
101.CAL内联XBRL分类架构计算链结基底文件
101.LAB行内XBRL税种标签连结架构文件
101.PRE行内XBRL税种展示连结架构文件
101.DEF内联XBRL分类定义标注文件
104本季度报告表格10-Q中的封面页互动数据文件（作为内联XBRL格式，包含在展示101中）。
施乐2024年第10-Q表格 76

签名
根据1934年证券交易法的要求，每位登记者已经将本报告授权在其代表之下签署。每位签署者的签名应仅与涉及该公司及其子公司的事项有关。

施乐控股有限公司
（注册者）
作者：
/S/　M爱尔兰 GECAJ
 
Mirlanda Gecaj 副总裁及
首席会计主管
(主要会计主管)
日期：2024年11月4日


 
施乐公司
（注册者）
作者：
/S/　M爱尔兰 GECAJ
 
Mirlanda Gecaj 副总裁
首席会计主管
(主要会计主管)
日期：2024年11月4日
 
施乐2024年第10-Q表格 77