Supplementary Financial Information

6 Months Ended

Jun. 30, 2025

Supplemental Financial Information [Abstract]

Cash, Cash Equivalents and Restricted Cash

Restricted cash primarily relates to proceeds from Second Lien Notes deposited into an escrow account for the benefit of the holders of the Second Lien Notes and escrow cash deposits made in Brazil associated with ongoing litigation. As more fully discussed in Note 20 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of the continuing litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

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


	June 30, 2025		December 31, 2024
Cash and cash equivalents	$	449	$	576
Restricted cash
Debt proceeds held in escrow	492		—
Litigation deposits in Brazil	23		20
Escrow and cash collections related to secured borrowing arrangements and receivable sales	1		13
Other restricted cash	20		22
Total Restricted cash	536		55
Cash, cash equivalents and restricted cash	$	985	$	631

Restricted cash is reported in the Condensed Consolidated Balance Sheets as follows:


	June 30, 2025		December 31, 2024
Other current assets	$	511	$	33
Other long-term assets	25		22
Total Restricted cash	$	536	$	55

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Location in Statement of Cash Flows	Six Months Ended June 30,
Source/(Use)			2025		2024
Provision for receivables (1)	Operating		$	27	$	24
Provision for inventory	Operating		21		55
Depreciation of buildings and equipment	Operating		27		27
Depreciation and obsolescence of equipment on operating leases	Operating		59		57
Amortization of internal use software	Operating		11		14

Amortization of acquired intangible assets	Operating		20		20
Amortization of patents(2)	Operating		4		5
Amortization of customer contract costs(3)	Operating		33		32

Cost of additions to land, buildings and equipment	Investing		(9)		(14)
Cost of additions to internal use software	Investing		(30)		(4)
Payments to acquire noncontrolling interests - Xerox Holdings	Investing		(4)		(20)
Common stock dividends - Xerox Holdings	Financing		(51)		(64)
Preferred stock dividends - Xerox Holdings	Financing		(7)		(7)




Repurchases related to stock-based compensation - Xerox Holdings	Financing		(6)		(10)
Commitment fees	Financing		(15)		—
Finance lease obligations	Financing		(7)		(2)

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(1)Provision for receivables includes adjustments for customer accommodations and contract terminations of $2 and $0 for the three months ended June 30, 2025 and 2024, respectively and $3 and (1) for the six months ended June 30, 2025 and 2024, respectively.

(2)Amortization of patents is reported in Decrease in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows.

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

Supplier Finance Program

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

The Company's supplier finance program is as follows:



	2025		2024
Balance at January 1st	$	30	$	40
Amounts invoiced	22		30
Invoices paid	(33)		(40)
Balance at March 31st	$	19	$	30
Amounts invoiced	22		30
Invoices paid	(21)		(35)
Balance at June 30th	$	20	$	25