Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'Xerox Corporation |
Entity Central Index Key | '0000108772 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 1,231,114,281 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Sales | $1,372 | $1,389 | $4,119 | $4,268 |
Outsourcing, maintenance and rentals | 3,757 | 3,726 | 11,383 | 11,255 |
Financing | 133 | 160 | 364 | 451 |
Total Revenues | 5,262 | 5,275 | 15,866 | 15,974 |
Costs and Expenses | ' | ' | ' | ' |
Cost of sales | 869 | 897 | 2,618 | 2,739 |
Cost of outsourcing, maintenance and rentals | 2,698 | 2,668 | 8,184 | 7,983 |
Cost of financing | 40 | 49 | 125 | 153 |
Research, development and engineering expenses | 145 | 161 | 448 | 495 |
Selling, administrative and general expenses | 1,018 | 1,032 | 3,100 | 3,139 |
Restructuring and asset impairment charges | 35 | 14 | 60 | 63 |
Amortization of intangible assets | 83 | 82 | 249 | 246 |
Other expenses, net | 39 | 58 | 115 | 190 |
Total Costs and Expenses | 4,927 | 4,961 | 14,899 | 15,008 |
Income before Income Taxes and Equity Income | 335 | 314 | 967 | 966 |
Income tax expense | 85 | 62 | 203 | 201 |
Equity in net income of unconsolidated affiliates | 43 | 34 | 126 | 105 |
Income from Continuing Operations | 293 | 286 | 890 | 870 |
(Loss) income from discontinued operations, net of tax | -2 | 2 | -22 | 10 |
Net Income | 291 | 288 | 868 | 880 |
Less: Net income attributable to noncontrolling interests | 5 | 6 | 15 | 20 |
Net Income Attributable to Xerox | 286 | 282 | 853 | 860 |
Net income from continuing operations | 288 | 280 | 875 | 850 |
(Loss) income from discontinued operations, net of tax | -2 | 2 | -22 | 10 |
Net Income Attributable to Xerox | $286 | $282 | $853 | $860 |
Continuing operations (dollars per share) | $0.23 | $0.21 | $0.70 | $0.63 |
Discontinued operations (dollars per share) | $0 | $0 | ($0.02) | $0.01 |
Total Basic Earnings per Share (dollars per share) | $0.23 | $0.21 | $0.68 | $0.64 |
Continuing operations (dollars per share) | $0.22 | $0.21 | $0.68 | $0.62 |
Discontinued operations (dollars per share) | $0 | $0 | ($0.01) | $0 |
Diluted Earnings per Share (dollars per share) | $0.22 | $0.21 | $0.67 | $0.62 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income | $291 | $288 | $868 | $880 | ||||
Less: Net income attributable to noncontrolling interests | 5 | 6 | 15 | 20 | ||||
Net Income Attributable to Xerox | 286 | 282 | 853 | 860 | ||||
Translation adjustments, net | 269 | [1] | 344 | [1] | -178 | [1] | 181 | [1] |
Unrealized gains (losses), net | 14 | [1] | -2 | [1] | 7 | [1] | -11 | [1] |
Changes in defined benefit plans, net | -38 | [1] | -10 | [1] | 121 | [1] | 0 | [1] |
Other Comprehensive Income (Loss), Net Attributable to Xerox | 245 | [1] | 332 | [1] | -50 | [1] | 170 | [1] |
Comprehensive Income, Net | 536 | 620 | 818 | 1,050 | ||||
Less: Comprehensive income, net attributable to noncontrolling interests | 5 | 6 | 15 | 20 | ||||
Comprehensive Income, Net Attributable to Xerox | $531 | $614 | $803 | $1,030 | ||||
[1] | (1) Refer to Note 16 - Other Comprehensive Income for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $948 | $1,246 |
Accounts receivable, net | 2,989 | 2,866 |
Billed portion of finance receivables, net | 138 | 152 |
Finance receivables, net | 1,584 | 1,836 |
Inventories | 1,152 | 1,011 |
Other current assets | 1,259 | 1,162 |
Total current assets | 8,070 | 8,273 |
Finance receivables due after one year, net | 2,957 | 3,325 |
Equipment on operating leases, net | 533 | 535 |
Land, buildings and equipment, net | 1,485 | 1,556 |
Investments in affiliates, at equity | 1,329 | 1,381 |
Intangible assets, net | 2,586 | 2,783 |
Goodwill | 9,169 | 9,062 |
Deferred tax assets, long-term | 643 | 763 |
Other long-term assets | 2,244 | 2,337 |
Total Assets | 29,016 | 30,015 |
Liabilities and Equity | ' | ' |
Short-term debt and current portion of long-term debt | 1,135 | 1,042 |
Accounts payable | 1,589 | 1,913 |
Accrued compensation and benefits costs | 772 | 741 |
Unearned income | 483 | 438 |
Other current liabilities | 1,667 | 1,776 |
Total current liabilities | 5,646 | 5,910 |
Long-term debt | 6,406 | 7,447 |
Pension and other benefit liabilities | 2,833 | 2,958 |
Post-retirement medical benefits | 847 | 909 |
Other long-term liabilities | 755 | 778 |
Total Liabilities | 16,487 | 18,002 |
Series A Convertible Preferred Stock | 349 | 349 |
Common stock | 1,247 | 1,239 |
Additional paid-in capital | 5,630 | 5,622 |
Treasury stock, at cost | -162 | -104 |
Retained earnings | 8,608 | 7,991 |
Accumulated other comprehensive loss | -3,277 | -3,227 |
Xerox shareholders’ equity | 12,046 | 11,521 |
Noncontrolling interests | 134 | 143 |
Total Equity | 12,180 | 11,664 |
Total Liabilities and Equity | $29,016 | $30,015 |
Shares of common stock issued (shares) | 1,247,126 | 1,238,696 |
Treasury stock (shares) | -16,012 | -14,924 |
Shares of common stock outstanding (shares) | 1,231,114 | 1,223,772 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' | ' |
Net income | $291 | $288 | $868 | $880 |
Adjustments required to reconcile net income to cash flows from operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 340 | 339 | 1,012 | 965 |
Provision for receivables | 27 | 23 | 86 | 83 |
Provision for inventory | 10 | 9 | 22 | 26 |
Net (gain) loss on sales of businesses and assets | -25 | 5 | -15 | 2 |
Undistributed equity in net income of unconsolidated affiliates | -41 | -32 | -85 | -67 |
Stock-based compensation | 19 | 30 | 78 | 92 |
Restructuring and asset impairment charges | 35 | 14 | 60 | 63 |
Payments for restructurings | -34 | -30 | -107 | -113 |
Contributions to defined benefit pension plans | -64 | -73 | -162 | -310 |
Increase in accounts receivable and billed portion of finance receivables | -55 | -413 | -557 | -1,021 |
Collections of deferred proceeds from sales of receivables | 140 | 94 | 371 | 350 |
Increase in inventories | -41 | -44 | -182 | -128 |
Increase in equipment on operating leases | -79 | -65 | -207 | -200 |
Decrease in finance receivables | 400 | 412 | 519 | 687 |
Collections on beneficial interest from sales of finance receivables | 16 | 0 | 43 | 0 |
Increase in other current and long-term assets | -38 | -34 | -158 | -196 |
(Decrease) increase in accounts payable and accrued compensation | -61 | 7 | -123 | -230 |
Increase (decrease) in other current and long-term liabilities | 77 | 36 | -34 | -126 |
Net change in income tax assets and liabilities | 56 | 32 | 95 | 93 |
Net change in derivative assets and liabilities | 13 | 7 | -28 | -2 |
Other operating, net | -25 | -11 | -89 | -41 |
Net cash provided by operating activities | 961 | 594 | 1,407 | 807 |
Cash Flows from Investing Activities: | ' | ' | ' | ' |
Cost of additions to land, buildings and equipment | -84 | -110 | -253 | -283 |
Proceeds from sales of land, buildings and equipment | 41 | 1 | 52 | 8 |
Cost of additions to internal use software | -18 | -30 | -63 | -100 |
Proceeds from sale of businesses | 0 | 0 | 11 | 0 |
Acquisitions, net of cash acquired | -24 | -156 | -158 | -243 |
Other investing, net | 3 | 6 | 9 | 17 |
Net cash used in investing activities | -82 | -289 | -402 | -601 |
Cash Flows from Financing Activities: | ' | ' | ' | ' |
Net (payments) proceeds on debt | -610 | 199 | -931 | 742 |
Common stock dividends | -77 | -63 | -201 | -177 |
Preferred stock dividends | -6 | -6 | -18 | -18 |
Proceeds from issuances of common stock | 43 | 33 | 96 | 43 |
Excess tax benefits from stock-based compensation | 12 | 10 | 13 | 10 |
Payments to acquire treasury stock, including fees | -162 | -361 | -172 | -718 |
Repurchases related to stock-based compensation | -44 | -40 | -54 | -41 |
Distributions to noncontrolling interests | -27 | -2 | -32 | -63 |
Net cash used in financing activities | -871 | -230 | -1,299 | -222 |
Effect of exchange rate changes on cash and cash equivalents | 11 | -7 | -4 | -4 |
Increase (decrease) in cash and cash equivalents | 19 | 68 | -298 | -20 |
Cash and cash equivalents at beginning of period | 929 | 814 | 1,246 | 902 |
Cash and Cash Equivalents at End of Period | $948 | $882 | $948 | $882 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context specifically requires otherwise. | |
We have prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with the accounting policies described in our 2012 Annual Report to Shareholders, which is incorporated by reference in our 2012 Annual Report on Form 10-K (2012 Annual Report), and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in our 2012 Annual Report. | |
In our opinion, all adjustments which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. | |
For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income.” | |
In the second quarter 2013 we completed the sale of our North American paper business and entered into an agreement to sell our European paper business, which is expected to be completed in the fourth quarter of 2013. Results from these paper-related businesses are reported as discontinued operations and all prior period results have been reclassified to reflect this change. Refer to Note 5 - Divestitures for additional information regarding discontinued operations. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent accounting pronouncements | ' |
Recent Accounting Pronouncements | |
Presentation of Comprehensive Income: In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide additional information about the amounts reclassified out of Accumulated Other Comprehensive Income by component. This update was effective for us beginning January 1, 2013 and the additional information required by this ASU is included in Note 16 - Other Comprehensive Income. | |
Balance Sheet Offsetting: In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the Balance Sheet and instruments and transactions subject to an agreement similar to a master netting arrangement to enable users of their financial statements to understand the effects of offsetting and related arrangements on their financial position. In January 2013, the FASB issued ASU 2013-01, which limited the scope of this guidance to derivatives, repurchase type agreements and securities borrowing and lending transactions. The guidance from these updates was effective for our fiscal year beginning January 1, 2013. We currently report our derivative assets and liabilities on a gross basis in the Balance Sheet and none of our derivative instruments are subject to a master netting agreement. Accordingly, no additional disclosures were required upon adoption of these ASU's. | |
Cumulative Translation Adjustments: In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The objective of ASU 2013-05 is to resolve the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. The guidance from this update is effective prospectively for our fiscal year beginning January 1, 2014. We do not anticipate that the adoption of this standard will have a material impact on our financial condition or results of operations. | |
Hedge Accounting: In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The update permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The update also removes the restriction on using different benchmark rates for similar hedges. ASU 2013-10 was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this standard did not have a material impact on our financial condition or results of operations. | |
Income Taxes: In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update provides that under certain circumstances, unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance from this update is effective prospectively for our fiscal year beginning January 1, 2014. Retrospective application is permitted. We are currently assessing the impact, if any, from this update; the principal impact is expected to be related to the presentation and annual disclosures of our Unrecognized Tax Benefits. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | |||||||||||||||||
Our reportable segments are aligned with how we manage the business and view the markets we serve. We report our financial performance based on the following two primary reportable segments – Services and Document Technology. Our Services segment operations involve delivery of a broad range of services, including business process, document and IT outsourcing. Our Document Technology segment includes the sale and support of a broad range of document systems from entry level to high-end. | |||||||||||||||||
The Services segment is comprised of three outsourcing service offerings: | |||||||||||||||||
• | Business Process Outsourcing (BPO) | ||||||||||||||||
• | Document Outsourcing (which includes Managed Print Services) (DO) | ||||||||||||||||
• | Information Technology Outsourcing (ITO) | ||||||||||||||||
Business process outsourcing services include service arrangements where we manage a customer’s business activity or process. Document outsourcing services include service arrangements that allow customers to streamline, simplify and digitize document-intensive business processes through automation and deployment of software applications and tools and the management of their printing needs. Document outsourcing services also include revenues from our partner print services offerings. Information technology outsourcing services include service arrangements where we manage a customer’s IT-related activities, such as application management and application development, data center operations or testing and quality assurance. | |||||||||||||||||
Our Document Technology segment includes the sale of products that share common technology, manufacturing and product platforms. Our products groupings range from: | |||||||||||||||||
• | “Entry,” which includes A4 devices and desktop printers; to | ||||||||||||||||
• | “Mid-range,” which includes A3 devices that generally serve workgroup environments in midsize to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100K and Light Production 91+ ppm priced at less than $100K; to | ||||||||||||||||
• | “High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises. | ||||||||||||||||
Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers. Segment revenues reflect the sale of document systems and supplies, technical services and product financing. | |||||||||||||||||
The segment classified as Other includes several units, none of which meet the thresholds for separate segment reporting. This group includes paper sales in our developing market countries, Wide Format Systems, licensing revenues, GIS network integration solutions and electronic presentation systems and non-allocated corporate items including non-financing interest, as well as other items included in Other expenses, net. | |||||||||||||||||
As discussed in Note 5 - Divestitures, during the second quarter 2013, we completed the sale of our North American Paper business and entered into an agreement to sell our European Paper business. As a result of these transactions, in the second quarter 2013 we began to report these paper-related operations as Discontinued Operations and reclassified their results from the Other segment to Discontinued Operations. All prior periods have been reclassified to conform to this presentation. | |||||||||||||||||
Operating segment revenues and profitability were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Segment | Segment Profit (Loss) | Segment | Segment Profit (Loss) | ||||||||||||||
Revenue | Revenue | ||||||||||||||||
2013 | |||||||||||||||||
Services | $ | 2,944 | $ | 292 | $ | 8,820 | $ | 866 | |||||||||
Document Technology | 2,159 | 261 | 6,557 | 692 | |||||||||||||
Other | 159 | (55 | ) | 489 | (186 | ) | |||||||||||
Total | $ | 5,262 | $ | 498 | $ | 15,866 | $ | 1,372 | |||||||||
2012 | |||||||||||||||||
Services | $ | 2,847 | $ | 269 | $ | 8,474 | $ | 830 | |||||||||
Document Technology | 2,259 | 245 | 6,967 | 758 | |||||||||||||
Other | 169 | (66 | ) | 533 | (194 | ) | |||||||||||
Total | $ | 5,275 | $ | 448 | $ | 15,974 | $ | 1,394 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Reconciliation to Pre-tax Income | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Segment Profit | $ | 498 | $ | 448 | $ | 1,372 | $ | 1,394 | |||||||||
Reconciling items: | |||||||||||||||||
Restructuring and asset impairment charges | (35 | ) | (14 | ) | (60 | ) | (63 | ) | |||||||||
Restructuring charges of Fuji Xerox | (3 | ) | (5 | ) | (8 | ) | (15 | ) | |||||||||
Amortization of intangible assets | (83 | ) | (82 | ) | (249 | ) | (246 | ) | |||||||||
Litigation matters (Q1 2013 only) | — | — | 37 | — | |||||||||||||
Equity in net income of unconsolidated affiliates | (43 | ) | (34 | ) | (126 | ) | (105 | ) | |||||||||
Other | 1 | 1 | 1 | 1 | |||||||||||||
Pre-tax Income | $ | 335 | $ | 314 | $ | 967 | $ | 966 | |||||||||
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
In April 2013, we acquired Florida-based Zeno Office Solutions, Inc. (Zeno), one of the Southeast's largest and fastest growing providers of print and IT solutions to small and mid-sized businesses, for approximately $59 in cash. This acquisition furthers our coverage in Florida, building on our strategy of expanding our network of locally-based companies focused on customers' requirements to improve their performance through efficiencies. | |
In February 2013, we acquired Impika, a leader in the design, manufacture and sale of production inkjet printing solutions used for industrial, commercial, security, label and package printing, for approximately $53 in cash. Impika, which is based in Aubagne, France, offers a portfolio of aqueous (water-based) inkjet presses based on proprietary technology. Through the addition of Impika's aqueous technology to our offerings, we expect to go to market with the industry's broadest range of digital presses, strengthening our leadership in digital color production printing. | |
Zeno and Impika are included in our Document Technology segment. Additionally, our Document Technology segment acquired one business for approximately $11 in cash and our Services segment acquired three businesses for a total of $31 in cash during the nine months ended September 30, 2013. | |
The operating results of these acquisitions are not material to our financial statements and are included within our results from the respective acquisition dates. The purchase prices were allocated primarily to intangible assets and goodwill based on third-party valuations and management’s estimates. |
Divestitures
Divestitures | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Divestitures [Abstract] | ' | ||||||||||||||||
Divestitures | ' | ||||||||||||||||
Divestitures | |||||||||||||||||
During the second quarter 2013, in connection with our decision to exit from the Paper distribution business, we completed the sale of our North American (N.A.) Paper business and entered into an agreement to sell our European Paper business. The decision to exit from the Paper distribution business was largely the result of management's objective to focus more on Services and innovative Document Technology. Net proceeds from the sale of the N.A. Paper business were approximately $10 and are reported as cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows. | |||||||||||||||||
As a result of these transactions, we reported these paper-related operations as Discontinued Operations and reclassified their results from the Other segment to Discontinued Operations. All prior periods have accordingly been reclassified to conform to this presentation. The sale of the European Paper business is expected to be completed in the fourth quarter of 2013. The net assets sold or expected to be sold in connection with these transactions are primarily related to working capital (accounts receivables and inventory) utilized in the business. As of September 30, 2013, total net assets held for sale were approximately $47 and are included in Other current assets in the Condensed Consolidated Balance Sheets. | |||||||||||||||||
In the second quarter of 2013 we recorded a net pre-tax loss of $23 for the disposition of our N.A. and European Paper businesses. The loss is primarily related to exit and disposal costs associated with these businesses. The disposals are expected to result in a reduction in headcount of approximately 300 employees, primarily in Europe. | |||||||||||||||||
The components of Discontinued Operations for the periods presented are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | $ | 82 | $ | 149 | $ | 369 | $ | 493 | |||||||||
(Loss) Income from operations | $ | (2 | ) | $ | 3 | $ | 5 | $ | 15 | ||||||||
Loss on disposal | — | — | (23 | ) | — | ||||||||||||
Net (Loss) Income Before Income Taxes | (2 | ) | 3 | (18 | ) | 15 | |||||||||||
Income tax expense | — | (1 | ) | (4 | ) | (5 | ) | ||||||||||
(Loss) Income From Discontinued Operations, Net of Tax | $ | (2 | ) | $ | 2 | $ | (22 | ) | $ | 10 | |||||||
* Revenues from discontinued operations for the three months ended September 30, 2013 only reflects revenues from our European Paper business as the sale has not been completed. Revenues from discontinued operations for the nine months ended September 30, 2013 only reflects five months of revenues from our North American Paper business as a result of the completion of the sale on May 31, 2013. |
Accounts_Receivable_Net
Accounts Receivable, Net | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||
Accounts Receivable, Net | ' | |||||||||||||||||||||||||||||||
Accounts Receivable, Net | ||||||||||||||||||||||||||||||||
Accounts receivable, net were as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Amounts billed or billable | $ | 2,705 | $ | 2,639 | ||||||||||||||||||||||||||||
Unbilled amounts | 395 | 335 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (111 | ) | (108 | ) | ||||||||||||||||||||||||||||
Accounts Receivable, Net | $ | 2,989 | $ | 2,866 | ||||||||||||||||||||||||||||
Unbilled amounts include amounts associated with percentage-of-completion accounting and other earned revenues not currently billable due to contractual provisions. Amounts to be invoiced in the subsequent month for current services provided are included in amounts billable, and at September 30, 2013 and December 31, 2012 were approximately $1,045 and $1,049, respectively. | ||||||||||||||||||||||||||||||||
We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. | ||||||||||||||||||||||||||||||||
Accounts Receivable Sales Arrangements | ||||||||||||||||||||||||||||||||
Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. | ||||||||||||||||||||||||||||||||
All of our arrangements involve the sale of our entire interest in groups of accounts receivables for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Condensed Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to its short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in the caption “Other current assets” in the accompanying Condensed Consolidated Balance Sheets and were $129 and $116 at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||||
Under most of the arrangements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. | ||||||||||||||||||||||||||||||||
Of the accounts receivable sold and derecognized from our balance sheet, $740 and $766 remained uncollected as of September 30, 2013 and December 31, 2012, respectively. Accounts receivables sales were as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Accounts receivable sales | $ | 814 | $ | 725 | $ | 2,587 | $ | 2,816 | ||||||||||||||||||||||||
Deferred proceeds | 125 | 122 | 384 | 525 | ||||||||||||||||||||||||||||
Loss on sales of accounts receivable | 4 | 4 | 13 | 16 | ||||||||||||||||||||||||||||
Estimated decrease to operating cash flows(1) | (75 | ) | (266 | ) | (42 | ) | (168 | ) | ||||||||||||||||||||||||
__________________________ | ||||||||||||||||||||||||||||||||
-1 | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency. The three months ended September 30, 2012 includes $215 of cash outflows related to our terminated U.S. revolving facility. | |||||||||||||||||||||||||||||||
Finance Receivables, Net | ||||||||||||||||||||||||||||||||
Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
2013 Sales: | ||||||||||||||||||||||||||||||||
In September 2013, we sold our entire interest in a group of U.S. lease finance receivables with a net carrying value of $419 to a third-party financial institution for cash proceeds of $384 and a beneficial interest from the purchaser of $60. The lease contracts, including associated service and supply elements, were initially sold to a wholly-owned consolidated bankruptcy-remote limited purpose subsidiary, which in turn sold the principal and interest portions of such contracts to the third-party financial institution (the “ultimate purchaser”). As of September 30, 2013, the principal value of the receivables sold and derecognized from our balance sheet was $416 (sale value of approximately $456). | ||||||||||||||||||||||||||||||||
A pre-tax gain of $25 was recognized on this sale and is net of fees and expenses of approximately $3. We will continue to service the sold receivables for which we will receive a 1% servicing fee. We have concluded that the 1% servicing fee (approximately $7 over the expected life of the associated receivables) is adequate compensation and, accordingly, no servicing asset or liability was recorded. | ||||||||||||||||||||||||||||||||
The beneficial interest represents our right to receive future cash flows from the sold receivables, which exceed the servicing fee as well as the ultimate purchaser's initial investment and associated return on that investment. The beneficial interest was initially recognized at an estimate of fair value based on the present value of the expected future cash flows. The present value of the expected future cash flows was calculated using management's best estimate of key assumptions including credit losses, prepayment rate and an appropriate risk adjusted discount rate (all unobservable Level 3 inputs) for which we utilized annualized rates of 2.1%, 9.3% and 10.0%, respectively. These assumptions are supported by both our historical experience and anticipated trends relative to the particular portfolio of receivables sold. However, to assess the sensitivity on the fair value of the beneficial interest, we adjusted the credit loss rate, prepayment rate and discount rate assumptions individually by 10% and 20% while holding the other assumptions constant. Although the effect of multiple assumption changes was not considered in this analysis, a 10% or 20% adverse variation in any one of these three individual assumptions would each decrease the recorded beneficial interest by approximately $3 or less. | ||||||||||||||||||||||||||||||||
2012 Sales: | ||||||||||||||||||||||||||||||||
In 2012, we sold our entire interest in two separate portfolios of U.S. lease finance receivables with a combined net carrying value of $682 to a third-party financial institution for cash proceeds of $630 and beneficial interests from the purchaser of $101. A pre-tax gain of $44 ($23 in the third quarter 2012) was recognized on these sales and is net of additional fees and expenses of approximately $5. As of September 30, 2013, the principal value of the receivables sold and derecognized from our balance sheet was $445 (sales value of approximately $485). | ||||||||||||||||||||||||||||||||
Summary: | ||||||||||||||||||||||||||||||||
The lease portfolios sold were from our Document Technology segment and the gains on these sales are reported in Financing revenues within our Document Technology segment. The ultimate purchaser has no recourse to our other assets for the failure of customers to pay principal and interest when due beyond our beneficial interests of $133, of which $58 and $75 is included in Other current assets and Other long-term assets, respectively, in the accompanying Condensed Consolidated Balance Sheets at September 30, 2013. The beneficial interests are held by a bankruptcy-remote subsidiary and therefore are not available to satisfy any of our creditor obligations. We report collections on the beneficial interests as operating cash flows in the Condensed Consolidated Statements of Cash Flows because such beneficial interests are the result of an operating activity and the associated interest rate risk is de minimis considering it has a weighted average life of less than 2 years. Collections on the beneficial interest were $16 and $43 for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||||||||||||||||||
The net impact from the sales of finance receivables on operating cash flows is summarized below: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | 384 | $ | 311 | $ | 384 | $ | 311 | ||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (84 | ) | — | (258 | ) | — | ||||||||||||||||||||||||||
Collections on beneficial interest | 16 | — | 43 | — | ||||||||||||||||||||||||||||
Estimated Increase to Operating Cash Flows | $ | 316 | $ | 311 | $ | 169 | $ | 311 | ||||||||||||||||||||||||
____________________________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Finance Receivables – Allowance for Credit Losses and Credit Quality | ||||||||||||||||||||||||||||||||
Finance receivables include sales-type leases, direct financing leases and installment loans. Our finance receivable portfolios are primarily in the U.S., Canada and Europe. We generally establish customer credit limits and estimate the allowance for credit losses on a country or geographic basis. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. | ||||||||||||||||||||||||||||||||
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 2 | 2 | 9 | — | 13 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (4 | ) | (15 | ) | — | (21 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (3 | ) | — | (2 | ) | |||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 51 | $ | 29 | $ | 76 | $ | 4 | $ | 160 | ||||||||||||||||||||||
Provision | 6 | 3 | 10 | 2 | 21 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (3 | ) | (14 | ) | (1 | ) | (20 | ) | ||||||||||||||||||||||
Recoveries and other(1) | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 54 | $ | 29 | $ | 74 | $ | 5 | $ | 162 | ||||||||||||||||||||||
Provision | 3 | 3 | 12 | 1 | 19 | |||||||||||||||||||||||||||
Charge-offs | (3 | ) | (4 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | (1 | ) | 4 | ||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | — | — | — | (12 | ) | |||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 43 | $ | 30 | $ | 76 | $ | 5 | $ | 154 | ||||||||||||||||||||||
Finance receivables as of September 30, 2013 collectively evaluated for impairment(2) | $ | 1,587 | $ | 696 | $ | 2,279 | $ | 270 | $ | 4,832 | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 75 | $ | 33 | $ | 91 | $ | 2 | $ | 201 | ||||||||||||||||||||||
Provision | 2 | 1 | 12 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (4 | ) | (3 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | 1 | 6 | |||||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 74 | $ | 33 | $ | 93 | $ | 3 | $ | 203 | ||||||||||||||||||||||
Provision | 3 | 2 | 11 | 1 | 17 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (4 | ) | (15 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (6 | ) | (1 | ) | (6 | ) | ||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 73 | $ | 31 | $ | 83 | $ | 3 | $ | 190 | ||||||||||||||||||||||
Provision | 3 | 3 | 9 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (5 | ) | (11 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | — | 2 | 3 | — | 5 | |||||||||||||||||||||||||||
Sale of finance receivables | (9 | ) | — | — | — | (9 | ) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 59 | $ | 31 | $ | 84 | $ | 3 | $ | 177 | ||||||||||||||||||||||
Finance receivables as of September 30, 2012 collectively evaluated for impairment(2) | $ | 2,384 | $ | 811 | $ | 2,466 | $ | 168 | $ | 5,829 | ||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
-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 residual values of $1 and $3, and the allowance for credit losses of $154 and $177 at September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
We evaluate our customers based on the following credit quality indicators: | ||||||||||||||||||||||||||||||||
• | Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%. | |||||||||||||||||||||||||||||||
• | Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain on such leases. Loss rates in this category are generally in the range of 2% to 4%. | |||||||||||||||||||||||||||||||
• | Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees and etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade status when the lease was originated. Accordingly, there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are around 10%. | |||||||||||||||||||||||||||||||
Credit quality indicators are updated at least annually and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Substandard | Total | Investment | Non-investment | Substandard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance | Grade | Grade | Finance | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Finance and other services | $ | 182 | $ | 75 | $ | 35 | $ | 292 | $ | 252 | $ | 147 | $ | 59 | $ | 458 | ||||||||||||||||
Government and education | 666 | 7 | 5 | 678 | 750 | 15 | 4 | 769 | ||||||||||||||||||||||||
Graphic arts | 118 | 58 | 100 | 276 | 92 | 90 | 137 | 319 | ||||||||||||||||||||||||
Industrial | 93 | 20 | 15 | 128 | 115 | 31 | 17 | 163 | ||||||||||||||||||||||||
Healthcare | 77 | 17 | 16 | 110 | 109 | 37 | 14 | 160 | ||||||||||||||||||||||||
Other | 53 | 21 | 29 | 103 | 70 | 39 | 34 | 143 | ||||||||||||||||||||||||
Total United States | 1,189 | 198 | 200 | 1,587 | 1,388 | 359 | 265 | 2,012 | ||||||||||||||||||||||||
Finance and other services | 128 | 102 | 31 | 261 | 151 | 116 | 40 | 307 | ||||||||||||||||||||||||
Government and education | 99 | 10 | 2 | 111 | 117 | 10 | 2 | 129 | ||||||||||||||||||||||||
Graphic arts | 34 | 32 | 23 | 89 | 37 | 34 | 30 | 101 | ||||||||||||||||||||||||
Industrial | 61 | 39 | 18 | 118 | 66 | 40 | 29 | 135 | ||||||||||||||||||||||||
Other | 67 | 39 | 11 | 117 | 75 | 43 | 11 | 129 | ||||||||||||||||||||||||
Total Canada | 389 | 222 | 85 | 696 | 446 | 243 | 112 | 801 | ||||||||||||||||||||||||
France | 268 | 299 | 117 | 684 | 274 | 294 | 134 | 702 | ||||||||||||||||||||||||
U.K./Ireland | 194 | 159 | 43 | 396 | 215 | 155 | 50 | 420 | ||||||||||||||||||||||||
Central(1) | 285 | 407 | 45 | 737 | 315 | 445 | 56 | 816 | ||||||||||||||||||||||||
Southern(2) | 120 | 191 | 59 | 370 | 139 | 230 | 73 | 442 | ||||||||||||||||||||||||
Nordics(3) | 46 | 43 | 3 | 92 | 49 | 36 | 9 | 94 | ||||||||||||||||||||||||
Total Europe | 913 | 1,099 | 267 | 2,279 | 992 | 1,160 | 322 | 2,474 | ||||||||||||||||||||||||
Other | 215 | 51 | 4 | 270 | 148 | 39 | 7 | 194 | ||||||||||||||||||||||||
Total | $ | 2,706 | $ | 1,570 | $ | 556 | $ | 4,832 | $ | 2,974 | $ | 1,801 | $ | 706 | $ | 5,481 | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 9 | $ | 2 | $ | 1 | $ | 12 | $ | 280 | $ | 292 | $ | 16 | ||||||||||||||||||
Government and education | 21 | 4 | 3 | 28 | 650 | 678 | 27 | |||||||||||||||||||||||||
Graphic arts | 14 | 2 | 1 | 17 | 259 | 276 | 10 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 122 | 128 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | 1 | 5 | 105 | 110 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 99 | 103 | 5 | |||||||||||||||||||||||||
Total United States | 54 | 11 | 7 | 72 | 1,515 | 1,587 | 69 | |||||||||||||||||||||||||
Canada | 2 | 3 | 3 | 8 | 688 | 696 | 31 | |||||||||||||||||||||||||
France | 1 | — | — | 1 | 683 | 684 | 34 | |||||||||||||||||||||||||
U.K./Ireland | 2 | 2 | 2 | 6 | 390 | 396 | 4 | |||||||||||||||||||||||||
Central(1) | 5 | 2 | 4 | 11 | 726 | 737 | 25 | |||||||||||||||||||||||||
Southern(2) | 19 | 8 | 13 | 40 | 330 | 370 | 65 | |||||||||||||||||||||||||
Nordics(3) | 2 | — | — | 2 | 90 | 92 | — | |||||||||||||||||||||||||
Total Europe | 29 | 12 | 19 | 60 | 2,219 | 2,279 | 128 | |||||||||||||||||||||||||
Other | 6 | 1 | — | 7 | 263 | 270 | — | |||||||||||||||||||||||||
Total | $ | 91 | $ | 27 | $ | 29 | $ | 147 | $ | 4,685 | $ | 4,832 | $ | 228 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 12 | $ | 3 | $ | 2 | $ | 17 | $ | 441 | $ | 458 | $ | 18 | ||||||||||||||||||
Government and education | 21 | 5 | 3 | 29 | 740 | 769 | 42 | |||||||||||||||||||||||||
Graphic arts | 16 | 1 | 1 | 18 | 301 | 319 | 12 | |||||||||||||||||||||||||
Industrial | 5 | 2 | 1 | 8 | 155 | 163 | 6 | |||||||||||||||||||||||||
Healthcare | 6 | 2 | 1 | 9 | 151 | 160 | 9 | |||||||||||||||||||||||||
Other | 5 | 1 | 1 | 7 | 136 | 143 | 6 | |||||||||||||||||||||||||
Total United States | 65 | 14 | 9 | 88 | 1,924 | 2,012 | 93 | |||||||||||||||||||||||||
Canada | 2 | 3 | 2 | 7 | 794 | 801 | 30 | |||||||||||||||||||||||||
France | — | 5 | 1 | 6 | 696 | 702 | 22 | |||||||||||||||||||||||||
U.K./Ireland | 2 | — | 2 | 4 | 416 | 420 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 4 | 9 | 807 | 816 | 30 | |||||||||||||||||||||||||
Southern(2) | 20 | 8 | 14 | 42 | 400 | 442 | 72 | |||||||||||||||||||||||||
Nordics(3) | 1 | — | — | 1 | 93 | 94 | — | |||||||||||||||||||||||||
Total Europe | 26 | 15 | 21 | 62 | 2,412 | 2,474 | 126 | |||||||||||||||||||||||||
Other | 2 | 1 | — | 3 | 191 | 194 | — | |||||||||||||||||||||||||
Total | $ | 95 | $ | 33 | $ | 32 | $ | 160 | $ | 5,321 | $ | 5,481 | $ | 249 | ||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Finance_Receivables_Net
Finance Receivables, Net | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Finance Receivables, Net [Abstract] | ' | |||||||||||||||||||||||||||||||
Finance Receivables, Net | ' | |||||||||||||||||||||||||||||||
Accounts Receivable, Net | ||||||||||||||||||||||||||||||||
Accounts receivable, net were as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Amounts billed or billable | $ | 2,705 | $ | 2,639 | ||||||||||||||||||||||||||||
Unbilled amounts | 395 | 335 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (111 | ) | (108 | ) | ||||||||||||||||||||||||||||
Accounts Receivable, Net | $ | 2,989 | $ | 2,866 | ||||||||||||||||||||||||||||
Unbilled amounts include amounts associated with percentage-of-completion accounting and other earned revenues not currently billable due to contractual provisions. Amounts to be invoiced in the subsequent month for current services provided are included in amounts billable, and at September 30, 2013 and December 31, 2012 were approximately $1,045 and $1,049, respectively. | ||||||||||||||||||||||||||||||||
We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends. | ||||||||||||||||||||||||||||||||
Accounts Receivable Sales Arrangements | ||||||||||||||||||||||||||||||||
Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. | ||||||||||||||||||||||||||||||||
All of our arrangements involve the sale of our entire interest in groups of accounts receivables for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Condensed Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to its short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in the caption “Other current assets” in the accompanying Condensed Consolidated Balance Sheets and were $129 and $116 at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||||
Under most of the arrangements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. | ||||||||||||||||||||||||||||||||
Of the accounts receivable sold and derecognized from our balance sheet, $740 and $766 remained uncollected as of September 30, 2013 and December 31, 2012, respectively. Accounts receivables sales were as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Accounts receivable sales | $ | 814 | $ | 725 | $ | 2,587 | $ | 2,816 | ||||||||||||||||||||||||
Deferred proceeds | 125 | 122 | 384 | 525 | ||||||||||||||||||||||||||||
Loss on sales of accounts receivable | 4 | 4 | 13 | 16 | ||||||||||||||||||||||||||||
Estimated decrease to operating cash flows(1) | (75 | ) | (266 | ) | (42 | ) | (168 | ) | ||||||||||||||||||||||||
__________________________ | ||||||||||||||||||||||||||||||||
-1 | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency. The three months ended September 30, 2012 includes $215 of cash outflows related to our terminated U.S. revolving facility. | |||||||||||||||||||||||||||||||
Finance Receivables, Net | ||||||||||||||||||||||||||||||||
Sale of Finance Receivables | ||||||||||||||||||||||||||||||||
2013 Sales: | ||||||||||||||||||||||||||||||||
In September 2013, we sold our entire interest in a group of U.S. lease finance receivables with a net carrying value of $419 to a third-party financial institution for cash proceeds of $384 and a beneficial interest from the purchaser of $60. The lease contracts, including associated service and supply elements, were initially sold to a wholly-owned consolidated bankruptcy-remote limited purpose subsidiary, which in turn sold the principal and interest portions of such contracts to the third-party financial institution (the “ultimate purchaser”). As of September 30, 2013, the principal value of the receivables sold and derecognized from our balance sheet was $416 (sale value of approximately $456). | ||||||||||||||||||||||||||||||||
A pre-tax gain of $25 was recognized on this sale and is net of fees and expenses of approximately $3. We will continue to service the sold receivables for which we will receive a 1% servicing fee. We have concluded that the 1% servicing fee (approximately $7 over the expected life of the associated receivables) is adequate compensation and, accordingly, no servicing asset or liability was recorded. | ||||||||||||||||||||||||||||||||
The beneficial interest represents our right to receive future cash flows from the sold receivables, which exceed the servicing fee as well as the ultimate purchaser's initial investment and associated return on that investment. The beneficial interest was initially recognized at an estimate of fair value based on the present value of the expected future cash flows. The present value of the expected future cash flows was calculated using management's best estimate of key assumptions including credit losses, prepayment rate and an appropriate risk adjusted discount rate (all unobservable Level 3 inputs) for which we utilized annualized rates of 2.1%, 9.3% and 10.0%, respectively. These assumptions are supported by both our historical experience and anticipated trends relative to the particular portfolio of receivables sold. However, to assess the sensitivity on the fair value of the beneficial interest, we adjusted the credit loss rate, prepayment rate and discount rate assumptions individually by 10% and 20% while holding the other assumptions constant. Although the effect of multiple assumption changes was not considered in this analysis, a 10% or 20% adverse variation in any one of these three individual assumptions would each decrease the recorded beneficial interest by approximately $3 or less. | ||||||||||||||||||||||||||||||||
2012 Sales: | ||||||||||||||||||||||||||||||||
In 2012, we sold our entire interest in two separate portfolios of U.S. lease finance receivables with a combined net carrying value of $682 to a third-party financial institution for cash proceeds of $630 and beneficial interests from the purchaser of $101. A pre-tax gain of $44 ($23 in the third quarter 2012) was recognized on these sales and is net of additional fees and expenses of approximately $5. As of September 30, 2013, the principal value of the receivables sold and derecognized from our balance sheet was $445 (sales value of approximately $485). | ||||||||||||||||||||||||||||||||
Summary: | ||||||||||||||||||||||||||||||||
The lease portfolios sold were from our Document Technology segment and the gains on these sales are reported in Financing revenues within our Document Technology segment. The ultimate purchaser has no recourse to our other assets for the failure of customers to pay principal and interest when due beyond our beneficial interests of $133, of which $58 and $75 is included in Other current assets and Other long-term assets, respectively, in the accompanying Condensed Consolidated Balance Sheets at September 30, 2013. The beneficial interests are held by a bankruptcy-remote subsidiary and therefore are not available to satisfy any of our creditor obligations. We report collections on the beneficial interests as operating cash flows in the Condensed Consolidated Statements of Cash Flows because such beneficial interests are the result of an operating activity and the associated interest rate risk is de minimis considering it has a weighted average life of less than 2 years. Collections on the beneficial interest were $16 and $43 for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||||||||||||||||||
The net impact from the sales of finance receivables on operating cash flows is summarized below: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | 384 | $ | 311 | $ | 384 | $ | 311 | ||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (84 | ) | — | (258 | ) | — | ||||||||||||||||||||||||||
Collections on beneficial interest | 16 | — | 43 | — | ||||||||||||||||||||||||||||
Estimated Increase to Operating Cash Flows | $ | 316 | $ | 311 | $ | 169 | $ | 311 | ||||||||||||||||||||||||
____________________________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Finance Receivables – Allowance for Credit Losses and Credit Quality | ||||||||||||||||||||||||||||||||
Finance receivables include sales-type leases, direct financing leases and installment loans. Our finance receivable portfolios are primarily in the U.S., Canada and Europe. We generally establish customer credit limits and estimate the allowance for credit losses on a country or geographic basis. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. | ||||||||||||||||||||||||||||||||
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 2 | 2 | 9 | — | 13 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (4 | ) | (15 | ) | — | (21 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (3 | ) | — | (2 | ) | |||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 51 | $ | 29 | $ | 76 | $ | 4 | $ | 160 | ||||||||||||||||||||||
Provision | 6 | 3 | 10 | 2 | 21 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (3 | ) | (14 | ) | (1 | ) | (20 | ) | ||||||||||||||||||||||
Recoveries and other(1) | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 54 | $ | 29 | $ | 74 | $ | 5 | $ | 162 | ||||||||||||||||||||||
Provision | 3 | 3 | 12 | 1 | 19 | |||||||||||||||||||||||||||
Charge-offs | (3 | ) | (4 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | (1 | ) | 4 | ||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | — | — | — | (12 | ) | |||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 43 | $ | 30 | $ | 76 | $ | 5 | $ | 154 | ||||||||||||||||||||||
Finance receivables as of September 30, 2013 collectively evaluated for impairment(2) | $ | 1,587 | $ | 696 | $ | 2,279 | $ | 270 | $ | 4,832 | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 75 | $ | 33 | $ | 91 | $ | 2 | $ | 201 | ||||||||||||||||||||||
Provision | 2 | 1 | 12 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (4 | ) | (3 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | 1 | 6 | |||||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 74 | $ | 33 | $ | 93 | $ | 3 | $ | 203 | ||||||||||||||||||||||
Provision | 3 | 2 | 11 | 1 | 17 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (4 | ) | (15 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (6 | ) | (1 | ) | (6 | ) | ||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 73 | $ | 31 | $ | 83 | $ | 3 | $ | 190 | ||||||||||||||||||||||
Provision | 3 | 3 | 9 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (5 | ) | (11 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | — | 2 | 3 | — | 5 | |||||||||||||||||||||||||||
Sale of finance receivables | (9 | ) | — | — | — | (9 | ) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 59 | $ | 31 | $ | 84 | $ | 3 | $ | 177 | ||||||||||||||||||||||
Finance receivables as of September 30, 2012 collectively evaluated for impairment(2) | $ | 2,384 | $ | 811 | $ | 2,466 | $ | 168 | $ | 5,829 | ||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
-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 residual values of $1 and $3, and the allowance for credit losses of $154 and $177 at September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
We evaluate our customers based on the following credit quality indicators: | ||||||||||||||||||||||||||||||||
• | Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%. | |||||||||||||||||||||||||||||||
• | Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain on such leases. Loss rates in this category are generally in the range of 2% to 4%. | |||||||||||||||||||||||||||||||
• | Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees and etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade status when the lease was originated. Accordingly, there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are around 10%. | |||||||||||||||||||||||||||||||
Credit quality indicators are updated at least annually and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Substandard | Total | Investment | Non-investment | Substandard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance | Grade | Grade | Finance | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Finance and other services | $ | 182 | $ | 75 | $ | 35 | $ | 292 | $ | 252 | $ | 147 | $ | 59 | $ | 458 | ||||||||||||||||
Government and education | 666 | 7 | 5 | 678 | 750 | 15 | 4 | 769 | ||||||||||||||||||||||||
Graphic arts | 118 | 58 | 100 | 276 | 92 | 90 | 137 | 319 | ||||||||||||||||||||||||
Industrial | 93 | 20 | 15 | 128 | 115 | 31 | 17 | 163 | ||||||||||||||||||||||||
Healthcare | 77 | 17 | 16 | 110 | 109 | 37 | 14 | 160 | ||||||||||||||||||||||||
Other | 53 | 21 | 29 | 103 | 70 | 39 | 34 | 143 | ||||||||||||||||||||||||
Total United States | 1,189 | 198 | 200 | 1,587 | 1,388 | 359 | 265 | 2,012 | ||||||||||||||||||||||||
Finance and other services | 128 | 102 | 31 | 261 | 151 | 116 | 40 | 307 | ||||||||||||||||||||||||
Government and education | 99 | 10 | 2 | 111 | 117 | 10 | 2 | 129 | ||||||||||||||||||||||||
Graphic arts | 34 | 32 | 23 | 89 | 37 | 34 | 30 | 101 | ||||||||||||||||||||||||
Industrial | 61 | 39 | 18 | 118 | 66 | 40 | 29 | 135 | ||||||||||||||||||||||||
Other | 67 | 39 | 11 | 117 | 75 | 43 | 11 | 129 | ||||||||||||||||||||||||
Total Canada | 389 | 222 | 85 | 696 | 446 | 243 | 112 | 801 | ||||||||||||||||||||||||
France | 268 | 299 | 117 | 684 | 274 | 294 | 134 | 702 | ||||||||||||||||||||||||
U.K./Ireland | 194 | 159 | 43 | 396 | 215 | 155 | 50 | 420 | ||||||||||||||||||||||||
Central(1) | 285 | 407 | 45 | 737 | 315 | 445 | 56 | 816 | ||||||||||||||||||||||||
Southern(2) | 120 | 191 | 59 | 370 | 139 | 230 | 73 | 442 | ||||||||||||||||||||||||
Nordics(3) | 46 | 43 | 3 | 92 | 49 | 36 | 9 | 94 | ||||||||||||||||||||||||
Total Europe | 913 | 1,099 | 267 | 2,279 | 992 | 1,160 | 322 | 2,474 | ||||||||||||||||||||||||
Other | 215 | 51 | 4 | 270 | 148 | 39 | 7 | 194 | ||||||||||||||||||||||||
Total | $ | 2,706 | $ | 1,570 | $ | 556 | $ | 4,832 | $ | 2,974 | $ | 1,801 | $ | 706 | $ | 5,481 | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 9 | $ | 2 | $ | 1 | $ | 12 | $ | 280 | $ | 292 | $ | 16 | ||||||||||||||||||
Government and education | 21 | 4 | 3 | 28 | 650 | 678 | 27 | |||||||||||||||||||||||||
Graphic arts | 14 | 2 | 1 | 17 | 259 | 276 | 10 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 122 | 128 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | 1 | 5 | 105 | 110 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 99 | 103 | 5 | |||||||||||||||||||||||||
Total United States | 54 | 11 | 7 | 72 | 1,515 | 1,587 | 69 | |||||||||||||||||||||||||
Canada | 2 | 3 | 3 | 8 | 688 | 696 | 31 | |||||||||||||||||||||||||
France | 1 | — | — | 1 | 683 | 684 | 34 | |||||||||||||||||||||||||
U.K./Ireland | 2 | 2 | 2 | 6 | 390 | 396 | 4 | |||||||||||||||||||||||||
Central(1) | 5 | 2 | 4 | 11 | 726 | 737 | 25 | |||||||||||||||||||||||||
Southern(2) | 19 | 8 | 13 | 40 | 330 | 370 | 65 | |||||||||||||||||||||||||
Nordics(3) | 2 | — | — | 2 | 90 | 92 | — | |||||||||||||||||||||||||
Total Europe | 29 | 12 | 19 | 60 | 2,219 | 2,279 | 128 | |||||||||||||||||||||||||
Other | 6 | 1 | — | 7 | 263 | 270 | — | |||||||||||||||||||||||||
Total | $ | 91 | $ | 27 | $ | 29 | $ | 147 | $ | 4,685 | $ | 4,832 | $ | 228 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 12 | $ | 3 | $ | 2 | $ | 17 | $ | 441 | $ | 458 | $ | 18 | ||||||||||||||||||
Government and education | 21 | 5 | 3 | 29 | 740 | 769 | 42 | |||||||||||||||||||||||||
Graphic arts | 16 | 1 | 1 | 18 | 301 | 319 | 12 | |||||||||||||||||||||||||
Industrial | 5 | 2 | 1 | 8 | 155 | 163 | 6 | |||||||||||||||||||||||||
Healthcare | 6 | 2 | 1 | 9 | 151 | 160 | 9 | |||||||||||||||||||||||||
Other | 5 | 1 | 1 | 7 | 136 | 143 | 6 | |||||||||||||||||||||||||
Total United States | 65 | 14 | 9 | 88 | 1,924 | 2,012 | 93 | |||||||||||||||||||||||||
Canada | 2 | 3 | 2 | 7 | 794 | 801 | 30 | |||||||||||||||||||||||||
France | — | 5 | 1 | 6 | 696 | 702 | 22 | |||||||||||||||||||||||||
U.K./Ireland | 2 | — | 2 | 4 | 416 | 420 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 4 | 9 | 807 | 816 | 30 | |||||||||||||||||||||||||
Southern(2) | 20 | 8 | 14 | 42 | 400 | 442 | 72 | |||||||||||||||||||||||||
Nordics(3) | 1 | — | — | 1 | 93 | 94 | — | |||||||||||||||||||||||||
Total Europe | 26 | 15 | 21 | 62 | 2,412 | 2,474 | 126 | |||||||||||||||||||||||||
Other | 2 | 1 | — | 3 | 191 | 194 | — | |||||||||||||||||||||||||
Total | $ | 95 | $ | 33 | $ | 32 | $ | 160 | $ | 5,321 | $ | 5,481 | $ | 249 | ||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The following is a summary of Inventories by major category: | ||||||||
September 30, 2013 | 31-Dec-12 | |||||||
Finished goods | $ | 961 | $ | 844 | ||||
Work-in-process | 76 | 61 | ||||||
Raw materials | 115 | 106 | ||||||
Total Inventories | $ | 1,152 | $ | 1,011 | ||||
Investment_in_Affiliates_at_Eq
Investment in Affiliates, at Equity | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Investment in Affiliates, at Equity | ' | |||||||||||||||
Investment in Affiliates, at Equity | ||||||||||||||||
Our equity in net income of our unconsolidated affiliates was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Fuji Xerox | $ | 40 | $ | 32 | $ | 117 | $ | 97 | ||||||||
Other investments | 3 | 2 | 9 | 8 | ||||||||||||
Total Equity in Net Income of Unconsolidated Affiliates | $ | 43 | $ | 34 | $ | 126 | $ | 105 | ||||||||
Fuji Xerox | ||||||||||||||||
Equity in net income of Fuji Xerox is affected by certain adjustments required to reflect the deferral of profit associated with intercompany sales. These adjustments may result in recorded equity income that is different from that implied by our 25% ownership interest. | ||||||||||||||||
Condensed financial data of Fuji Xerox was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Summary of Operations: | ||||||||||||||||
Revenues | $ | 2,909 | $ | 3,192 | $ | 8,653 | $ | 9,586 | ||||||||
Costs and expenses | 2,670 | 2,988 | 7,960 | 8,928 | ||||||||||||
Income before income taxes | 239 | 204 | 693 | 658 | ||||||||||||
Income tax expense | 72 | 68 | 197 | 246 | ||||||||||||
Net Income | 167 | 136 | 496 | 412 | ||||||||||||
Less: Net income – noncontrolling interests | 1 | 2 | 4 | 4 | ||||||||||||
Net Income – Fuji Xerox | $ | 166 | $ | 134 | $ | 492 | $ | 408 | ||||||||
Weighted Average Exchange Rate(1) | 98.89 | 78.61 | 96.61 | 79.47 | ||||||||||||
_____________________________ | ||||||||||||||||
-1 | Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring_Programs
Restructuring Programs | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring Programs | ' | |||||||||||||||
Restructuring Programs | ||||||||||||||||
During the nine months ended September 30, 2013, we recorded net restructuring and asset impairment charges from continuing operations of $60, which included approximately $78 of severance costs related to headcount reductions of approximately 3,300 employees primarily in North America. These costs were offset by $18 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives. | ||||||||||||||||
Information related to restructuring program activity during the nine months ended September 30, 2013 is outlined below: | ||||||||||||||||
Severance and | Lease Cancellation | Asset Impairments(2) | Total | |||||||||||||
Related Costs | and Other Costs | |||||||||||||||
Balance at December 31, 2012 | $ | 123 | $ | 7 | $ | — | $ | 130 | ||||||||
Provision | 78 | — | — | 78 | ||||||||||||
Reversals | (18 | ) | — | — | (18 | ) | ||||||||||
Net Current Period Charges - Continuing Operations(1) | 60 | — | — | 60 | ||||||||||||
Discontinued operations(3) | 4 | — | — | 4 | ||||||||||||
Total Net Current Period Charges | 64 | — | — | 64 | ||||||||||||
Charges against reserve and currency | (105 | ) | (2 | ) | — | (107 | ) | |||||||||
Balance at September 30, 2013 | $ | 82 | $ | 5 | $ | — | $ | 87 | ||||||||
_____________________________ | ||||||||||||||||
-1 | Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown. | |||||||||||||||
-2 | Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. | |||||||||||||||
-3 | Refer to Note 5 - Divestitures for additional information regarding discontinued operations. | |||||||||||||||
Reconciliation to the Condensed Consolidated Statements of Cash Flows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Charges against reserve | $ | (34 | ) | $ | (29 | ) | $ | (107 | ) | $ | (114 | ) | ||||
Asset impairment | — | — | — | 2 | ||||||||||||
Effects of foreign currency and other non-cash items | — | (1 | ) | — | (1 | ) | ||||||||||
Restructuring Cash Payments | $ | (34 | ) | $ | (30 | ) | $ | (107 | ) | $ | (113 | ) | ||||
The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Services | $ | 10 | $ | 6 | $ | 18 | $ | 25 | ||||||||
Document Technology | 25 | 8 | 42 | 37 | ||||||||||||
Other | — | — | — | 1 | ||||||||||||
Total Net Restructuring Charges | $ | 35 | $ | 14 | $ | 60 | $ | 63 | ||||||||
Debt
Debt | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Debt | ' | |||||||||||||||
Debt | ||||||||||||||||
Interest Expense and Income | ||||||||||||||||
Interest expense and interest income were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense(1) | $ | 100 | $ | 105 | $ | 308 | $ | 325 | ||||||||
Interest income(2) | 136 | 163 | 373 | 461 | ||||||||||||
____________________________ | ||||||||||||||||
-1 | Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | |||||||||||||||
-2 | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | |||||||||||||||
Net (Payments) Proceeds on Debt | ||||||||||||||||
Net proceeds on debt as shown on the Condensed Consolidated Statements of Cash Flows was as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Net proceeds on short-term debt | $ | 6 | $ | 742 | ||||||||||||
Proceeds from issuance of long-term debt(1) | 102 | 1,112 | ||||||||||||||
Payments on long-term debt | (1,039 | ) | (1,112 | ) | ||||||||||||
Net (Payments) Proceeds on Debt | $ | (931 | ) | $ | 742 | |||||||||||
____________________________ | ||||||||||||||||
-1 | Includes net proceeds of $39 from the sale and capital leaseback of a building in the U.S. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||
Financial Instruments | |||||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||||
We may use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged. | |||||||||||||||||||
At September 30, 2013 and December 31, 2012, we did not have any interest rate swaps outstanding. | |||||||||||||||||||
Foreign Exchange Risk Management | |||||||||||||||||||
We are a global company that is 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 | ||||||||||||||||||
Summary of Foreign Exchange Hedging Positions | |||||||||||||||||||
At September 30, 2013, we had outstanding forward exchange and purchased option contracts with gross notional values of $2,826, which is reflective of the amounts that are normally outstanding at any point during the year. Approximately 81% of these contracts mature within three months, 10% in three to six months and 9% in six to twelve months. | |||||||||||||||||||
The following is a summary of the primary hedging positions and corresponding fair values as of September 30, 2013: | |||||||||||||||||||
Currency Hedged (Buy/Sell) | Gross | Fair Value | |||||||||||||||||
Notional | Asset | ||||||||||||||||||
Value | (Liability)(1) | ||||||||||||||||||
Japanese Yen/U.S. Dollar | $ | 574 | $ | (10 | ) | ||||||||||||||
U.S. Dollar/Euro | 513 | (9 | ) | ||||||||||||||||
Euro/U.K. Pound Sterling | 383 | (2 | ) | ||||||||||||||||
Japanese Yen/Euro | 367 | (16 | ) | ||||||||||||||||
U.K. Pound Sterling/U.S. Dollar | 242 | — | |||||||||||||||||
U.K. Pound Sterling/Euro | 146 | 2 | |||||||||||||||||
Canadian Dollar/Euro | 97 | — | |||||||||||||||||
Euro/U.S. Dollar | 92 | 1 | |||||||||||||||||
Mexican Peso/U.S. Dollar | 67 | (1 | ) | ||||||||||||||||
Indian Rupee/U.S. Dollar | 54 | (1 | ) | ||||||||||||||||
Philippine Peso/U.S. Dollar | 47 | — | |||||||||||||||||
U.S. Dollar/Japanese Yen | 38 | — | |||||||||||||||||
Euro/Danish Krone | 28 | — | |||||||||||||||||
U.S. Dollar/Peruvian Nuevo Sol | 26 | — | |||||||||||||||||
All Other | 152 | — | |||||||||||||||||
Total Foreign Exchange Hedging | $ | 2,826 | $ | (36 | ) | ||||||||||||||
__________________ | |||||||||||||||||||
-1 | Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at September 30, 2013. | ||||||||||||||||||
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, sales and expenses. No amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss was included in the assessment of hedge effectiveness. The net liability fair value of these contracts was $33 and $48 as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||
Summary of Derivative Instruments Fair Value | |||||||||||||||||||
The following table provides a summary of the fair value amounts of our derivative instruments: | |||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | September 30, 2013 | December 31, 2012 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 4 | $ | 3 | ||||||||||||||
Other current liabilities | (37 | ) | (51 | ) | |||||||||||||||
Net Designated Derivative Liability | $ | (33 | ) | $ | (48 | ) | |||||||||||||
Derivatives NOT Designated as Hedging Instruments | |||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 7 | $ | 8 | ||||||||||||||
Other current liabilities | (10 | ) | (31 | ) | |||||||||||||||
Net Undesignated Derivative Asset (Liability) | $ | (3 | ) | $ | (23 | ) | |||||||||||||
Summary of Derivatives | Total Derivative Assets | $ | 11 | $ | 11 | ||||||||||||||
Total Derivative Liabilities | (47 | ) | (82 | ) | |||||||||||||||
Net Derivative Liability | $ | (36 | ) | $ | (71 | ) | |||||||||||||
Summary of Derivative Instruments Gains (Losses) | |||||||||||||||||||
Derivative gains (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 tables provide a summary of gains (losses) on derivative instruments: | |||||||||||||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) | Location of Derivative | Gain (Loss) Reclassified | ||||||||||||||||
Hedging Relationships | Recognized in OCI | Gain (Loss) Reclassified | from AOCI to Income | ||||||||||||||||
(Effective Portion) | from AOCI into Income | (Effective Portion) | |||||||||||||||||
Three Months | (Effective Portion) | Three Months | |||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts – forwards | $ | (13 | ) | $ | 8 | Cost of sales | $ | (35 | ) | $ | 8 | ||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) | Location of Derivative | Gain (Loss) Reclassified | ||||||||||||||||
Hedging Relationships | Recognized in OCI | Gain (Loss) Reclassified | from AOCI to Income | ||||||||||||||||
(Effective Portion) | from AOCI into Income | (Effective Portion) | |||||||||||||||||
Nine Months | (Effective Portion) | Nine Months | |||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts – forwards | $ | (81 | ) | $ | 16 | Cost of sales | $ | (89 | ) | $ | 29 | ||||||||
No amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain (loss) was included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur. | |||||||||||||||||||
At September 30, 2013, net after-tax losses of $33 were 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 re-measurement of the underlying foreign currency-denominated asset or liability. | |||||||||||||||||||
The following table provides a summary of gains (losses) on non-designated derivative instruments: | |||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Location of Derivative Gain (Loss) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts – forwards | Other expense – Currency losses, net | $ | (12 | ) | $ | (6 | ) | $ | (45 | ) | $ | (1 | ) | ||||||
During the three and nine months ended September 30, 2013, Currency gains, net were $0 and $7, respectively. During the three and nine months ended September 30, 2012, Currency gains/losses, net were less than $1, respectively. Net Currency gains and losses are included in Other expenses, net and 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 re-measurement of foreign currency-denominated assets and liabilities. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | |||||||||||||||
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, 2013 | December 31, 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts-forwards | $ | 11 | $ | 11 | ||||||||||||
Deferred compensation investments in cash surrender life insurance | 85 | 77 | ||||||||||||||
Deferred compensation investments in mutual funds | 27 | 23 | ||||||||||||||
Total | $ | 123 | $ | 111 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts-forwards | $ | 47 | $ | 82 | ||||||||||||
Deferred compensation plan liabilities | 120 | 110 | ||||||||||||||
Total | $ | 167 | $ | 192 | ||||||||||||
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 Company-owned life insurance is reflected at cash surrender value. Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for actively traded investments similar to those held by the plan. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections, based on quoted prices for similar assets in actively traded markets. | ||||||||||||||||
Summary of Other Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis | ||||||||||||||||
The estimated fair values of our other financial assets and liabilities not measured at fair value on a recurring basis were as follows: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 948 | $ | 948 | $ | 1,246 | $ | 1,246 | ||||||||
Accounts receivable, net | 2,989 | 2,989 | 2,866 | 2,866 | ||||||||||||
Short-term debt | 1,135 | 1,137 | 1,042 | 1,051 | ||||||||||||
Long-term debt | 6,406 | 6,857 | 7,447 | 8,040 | ||||||||||||
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- and Long-term debt was estimated based on quoted market prices for publicly-traded securities or on the current rates offered to us for debt of similar maturities. 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. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Employee Benefit Plans | |||||||||||||||||||||||||
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows for the three months ended September 30: | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||
Service cost | $ | 2 | $ | 28 | $ | 24 | $ | 21 | $ | 2 | $ | 3 | |||||||||||||
Interest cost | 37 | 47 | 64 | 66 | 8 | 9 | |||||||||||||||||||
Expected return on plan assets | (41 | ) | (53 | ) | (78 | ) | (76 | ) | — | — | |||||||||||||||
Recognized net actuarial loss | 2 | 12 | 20 | 14 | — | — | |||||||||||||||||||
Amortization of prior service credit | (1 | ) | (6 | ) | (1 | ) | — | (10 | ) | (10 | ) | ||||||||||||||
Recognized settlement loss | 20 | 25 | — | — | — | — | |||||||||||||||||||
Defined Benefit Plans | 19 | 53 | 29 | 25 | — | 2 | |||||||||||||||||||
Defined contribution plans | 15 | 7 | 7 | 10 | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | 34 | 60 | 36 | 35 | — | 2 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||
Net actuarial gain | — | — | — | — | — | (31 | ) | ||||||||||||||||||
Amortization of prior service credit | 1 | 6 | 1 | — | 10 | 10 | |||||||||||||||||||
Amortization of net actuarial loss | (22 | ) | (37 | ) | (20 | ) | (14 | ) | — | — | |||||||||||||||
Total Recognized in Other Comprehensive Income(1) | (21 | ) | (31 | ) | (19 | ) | (14 | ) | 10 | (21 | ) | ||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 13 | $ | 29 | $ | 17 | $ | 21 | $ | 10 | $ | (19 | ) | ||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 16 - Other Comprehensive Income for related tax effects and the after-tax amounts. | ||||||||||||||||||||||||
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows for the nine months ended September 30: | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||
Service cost | $ | 7 | $ | 84 | $ | 69 | $ | 62 | $ | 7 | $ | 7 | |||||||||||||
Interest cost | 109 | 139 | 193 | 202 | 25 | 31 | |||||||||||||||||||
Expected return on plan assets | (130 | ) | (157 | ) | (235 | ) | (229 | ) | — | — | |||||||||||||||
Recognized net actuarial loss | 16 | 39 | 58 | 40 | 1 | 1 | |||||||||||||||||||
Amortization of prior service credit | (1 | ) | (17 | ) | (1 | ) | — | (32 | ) | (31 | ) | ||||||||||||||
Recognized curtailment gain | — | — | (6 | ) | — | — | — | ||||||||||||||||||
Recognized settlement loss | 99 | 55 | — | — | — | — | |||||||||||||||||||
Defined Benefit Plans | 100 | 143 | 78 | 75 | 1 | 8 | |||||||||||||||||||
Defined contribution plans | 53 | 22 | 20 | 26 | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | 153 | 165 | 98 | 101 | 1 | 8 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||
Net actuarial gain | 11 | (19 | ) | — | — | (36 | ) | (31 | ) | ||||||||||||||||
Amortization of prior service credit | 1 | 17 | 1 | — | 32 | 31 | |||||||||||||||||||
Amortization of net actuarial loss | (115 | ) | (94 | ) | (58 | ) | (40 | ) | (1 | ) | (1 | ) | |||||||||||||
Total Recognized in Other Comprehensive Income(1) | (103 | ) | (96 | ) | (57 | ) | (40 | ) | (5 | ) | (1 | ) | |||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 50 | $ | 69 | $ | 41 | $ | 61 | $ | (4 | ) | $ | 7 | ||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 16 - Other Comprehensive Income for related tax effects and the after-tax amounts. | ||||||||||||||||||||||||
Contributions: During the nine months ended September 30, 2013, we made cash contributions of $162 ($20 U.S. and $142 Non-U.S.) to our defined benefit pension plans and and $52 to our retiree health benefit plans. We presently anticipate additional cash contributions of $33 ($6 U.S. and $27 Non-U.S.) to our defined benefit pension plans and $28 to our retiree health benefit plans in 2013 for total full-year cash contributions of approximately $195 ($26 U.S. and $169 Non-U.S.) to our defined benefit pension plans and $80 to our retiree health benefit plans. |
Shareholders_Equity
Shareholders Equity | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Common | Additional | Treasury Stock | Retained | AOCL(1) | Xerox | Non- | Total | |||||||||||||||||||||||||
Stock | Paid-in | Earnings | Shareholders’ | controlling | Equity | |||||||||||||||||||||||||||
Capital | Equity | Interests | ||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,239 | $ | 5,622 | $ | (104 | ) | $ | 7,991 | $ | (3,227 | ) | $ | 11,521 | $ | 143 | $ | 11,664 | ||||||||||||||
Comprehensive income (loss), net | — | — | — | 853 | (50 | ) | 803 | 15 | 818 | |||||||||||||||||||||||
Cash dividends declared- common stock(2) | — | — | — | (218 | ) | — | (218 | ) | — | (218 | ) | |||||||||||||||||||||
Cash dividends declared - preferred stock(3) | — | — | — | (18 | ) | — | (18 | ) | — | (18 | ) | |||||||||||||||||||||
Stock option and incentive plans, net | 24 | 106 | — | — | — | 130 | — | 130 | ||||||||||||||||||||||||
Payments to acquire treasury stock, including fees | — | — | (172 | ) | — | — | (172 | ) | — | (172 | ) | |||||||||||||||||||||
Cancellation of treasury stock | (16 | ) | (98 | ) | 114 | — | — | — | — | — | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 1,247 | $ | 5,630 | $ | (162 | ) | $ | 8,608 | $ | (3,277 | ) | $ | 12,046 | $ | 134 | $ | 12,180 | ||||||||||||||
Common | Additional | Treasury Stock | Retained | AOCL(1) | Xerox | Non- | Total | |||||||||||||||||||||||||
Stock | Paid-in | Earnings | Shareholders’ | controlling | Equity | |||||||||||||||||||||||||||
Capital | Equity | Interests | ||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,353 | $ | 6,317 | $ | (124 | ) | $ | 7,046 | $ | (2,716 | ) | $ | 11,876 | $ | 149 | $ | 12,025 | ||||||||||||||
Comprehensive income, net | — | — | — | 860 | 170 | 1,030 | 20 | 1,050 | ||||||||||||||||||||||||
Cash dividends declared-common stock(2) | — | — | — | (172 | ) | — | (172 | ) | — | (172 | ) | |||||||||||||||||||||
Cash dividends declared-preferred stock(3) | — | — | — | (18 | ) | — | (18 | ) | — | (18 | ) | |||||||||||||||||||||
Contribution of common stock to U.S. pension plan | 15 | 115 | — | — | — | 130 | — | 130 | ||||||||||||||||||||||||
Stock option and incentive plans, net | 17 | 81 | — | — | — | 98 | — | 98 | ||||||||||||||||||||||||
Payments to acquire treasury stock, including fees | — | — | (718 | ) | — | — | (718 | ) | — | (718 | ) | |||||||||||||||||||||
Cancellation of treasury stock | (63 | ) | (418 | ) | 481 | — | — | — | — | — | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (29 | ) | (29 | ) | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 1,322 | $ | 6,095 | $ | (361 | ) | $ | 7,716 | $ | (2,546 | ) | $ | 12,226 | $ | 140 | $ | 12,366 | ||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Refer to Note 16 - Other Comprehensive Income for components of AOCL. | |||||||||||||||||||||||||||||||
-2 | Cash dividends declared on common stock of $0.0575 per share in all quarters of 2013 and $0.0425 per share in all quarters of 2012. | |||||||||||||||||||||||||||||||
-3 | Cash dividends declared on preferred stock of $20.00 per share in all quarters of 2013 and 2012. | |||||||||||||||||||||||||||||||
Treasury Stock | ||||||||||||||||||||||||||||||||
The following is a summary of the purchases of common stock made during the nine months ended September 30, 2013 under our authorized stock repurchase programs (shares in thousands): | ||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
December 31, 2012 | 14,924 | $ | 104 | |||||||||||||||||||||||||||||
Purchases (1) | 17,372 | 172 | ||||||||||||||||||||||||||||||
Cancellations | (16,284 | ) | (114 | ) | ||||||||||||||||||||||||||||
September 30, 2013 | 16,012 | $ | 162 | |||||||||||||||||||||||||||||
____________________________ | ||||||||||||||||||||||||||||||||
-1 | Includes associated fees. |
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||||||||||||||||||||||
Other Comprehensive Income | ' | ||||||||||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||||||||||
Other Comprehensive Income is comprised of the following: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | ||||||||||||||||||||||||||
Translation Adjustments Gains (Losses) | $ | 266 | $ | 269 | $ | 343 | $ | 344 | $ | (185 | ) | $ | (178 | ) | $ | 176 | $ | 181 | |||||||||||||||
Unrealized (Losses) Gains: | |||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges - (losses) gains | (13 | ) | (11 | ) | 8 | 4 | (81 | ) | (57 | ) | 16 | 11 | |||||||||||||||||||||
Changes in cash flow hedges reclassed to earnings(1) | 35 | 24 | (8 | ) | (6 | ) | 89 | 62 | (29 | ) | (22 | ) | |||||||||||||||||||||
Other gains | 1 | 1 | — | — | 2 | 2 | — | — | |||||||||||||||||||||||||
Net Unrealized Gains (Losses) | 23 | 14 | — | (2 | ) | 10 | 7 | (13 | ) | (11 | ) | ||||||||||||||||||||||
Defined Benefit Plans Gains (Losses): | |||||||||||||||||||||||||||||||||
Net actuarial gain | — | — | 31 | 19 | 25 | 15 | 50 | 31 | |||||||||||||||||||||||||
Prior service amortization(2) | (12 | ) | (7 | ) | (16 | ) | (10 | ) | (34 | ) | (21 | ) | (48 | ) | (30 | ) | |||||||||||||||||
Actuarial loss amortization(2) | 42 | 29 | 51 | 33 | 174 | 116 | 135 | 88 | |||||||||||||||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | 11 | 11 | 7 | 7 | 7 | 7 | (34 | ) | (34 | ) | |||||||||||||||||||||||
Other (losses) gains(4) | (71 | ) | (71 | ) | (59 | ) | (59 | ) | 4 | 4 | (55 | ) | (55 | ) | |||||||||||||||||||
Change in Defined Benefit Plans (Losses) Gains | (30 | ) | (38 | ) | 14 | (10 | ) | 176 | 121 | 48 | — | ||||||||||||||||||||||
Other Comprehensive Income (Loss) Attributable to Xerox | $ | 259 | $ | 245 | $ | 357 | $ | 332 | $ | 1 | $ | (50 | ) | $ | 211 | $ | 170 | ||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||
-1 | Reclassified to Cost of sales - refer to Note 12 - Financial Instruments for additional information regarding our cash flow hedges. | ||||||||||||||||||||||||||||||||
-2 | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information. | ||||||||||||||||||||||||||||||||
-3 | Represents our share of Fuji Xerox's benefit plan changes. | ||||||||||||||||||||||||||||||||
-4 | Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits included in AOCL. | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss (AOCL) | |||||||||||||||||||||||||||||||||
AOCL is comprised of the following: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Cumulative translation adjustments | $ | (1,004 | ) | $ | (826 | ) | |||||||||||||||||||||||||||
Benefit plans net actuarial losses and prior service credits(1) | (2,243 | ) | (2,364 | ) | |||||||||||||||||||||||||||||
Other unrealized losses, net | (30 | ) | (37 | ) | |||||||||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ | (3,277 | ) | $ | (3,227 | ) | |||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||
-1 | Includes our share of Fuji Xerox. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic Earnings per Share: | ||||||||||||||||
Net income from continuing operations attributable to Xerox | $ | 288 | $ | 280 | $ | 875 | $ | 850 | ||||||||
Accrued dividends on preferred stock | (6 | ) | (6 | ) | (18 | ) | (18 | ) | ||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 282 | 274 | 857 | 832 | ||||||||||||
Net (loss) income from discontinued operations attributable to Xerox | (2 | ) | 2 | (22 | ) | 10 | ||||||||||
Adjusted Net Income Available to Common Shareholders | $ | 280 | $ | 276 | $ | 835 | $ | 842 | ||||||||
Weighted-average common shares outstanding | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 | ||||||||||||
Basic Earnings (Loss) per Share: | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.21 | $ | 0.7 | $ | 0.63 | ||||||||
Discontinued operations | — | — | (0.02 | ) | 0.01 | |||||||||||
Total | $ | 0.23 | $ | 0.21 | $ | 0.68 | $ | 0.64 | ||||||||
Diluted Earnings per Share: | ||||||||||||||||
Net income from continuing operations attributable to Xerox | $ | 288 | $ | 280 | $ | 875 | $ | 850 | ||||||||
Accrued dividends on preferred stock | — | (6 | ) | — | (18 | ) | ||||||||||
Interest on convertible securities, net | — | — | 1 | 1 | ||||||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | $ | 288 | $ | 274 | $ | 876 | $ | 833 | ||||||||
Net (loss) income from discontinued operations attributable to Xerox | (2 | ) | 2 | (22 | ) | 10 | ||||||||||
Adjusted Net Income Available to Common Shareholders | $ | 286 | $ | 276 | $ | 854 | $ | 843 | ||||||||
Weighted-average common shares outstanding | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 | ||||||||||||
Common shares issuable with respect to: | ||||||||||||||||
Stock options | 5,225 | 3,335 | 5,422 | 5,369 | ||||||||||||
Restricted stock and performance shares | 14,910 | 20,028 | 18,429 | 21,227 | ||||||||||||
Convertible preferred stock | 26,966 | — | 26,966 | — | ||||||||||||
Convertible securities | 1,992 | 1,992 | 1,992 | 1,992 | ||||||||||||
Adjusted Weighted Average Common Shares Outstanding | 1,285,578 | 1,318,868 | 1,283,596 | 1,349,010 | ||||||||||||
Diluted Earnings (Loss) per Share: | ||||||||||||||||
Continuing operations | $ | 0.22 | $ | 0.21 | $ | 0.68 | $ | 0.62 | ||||||||
Discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Total | $ | 0.22 | $ | 0.21 | $ | 0.67 | $ | 0.62 | ||||||||
The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive (shares in thousands): | ||||||||||||||||
Stock options | 13,102 | 38,430 | 12,905 | 36,395 | ||||||||||||
Restricted stock and performance shares | 12,016 | 24,327 | 8,497 | 23,128 | ||||||||||||
Convertible preferred stock | — | 26,966 | — | 26,966 | ||||||||||||
Total Anti-Dilutive Securities | 25,118 | 89,723 | 21,402 | 86,489 | ||||||||||||
Dividends per Common Share | $ | 0.0575 | $ | 0.0425 | $ | 0.1725 | $ | 0.1275 | ||||||||
Contingencies_and_Litigation
Contingencies and Litigation | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Contingencies and Litigation | ' | |
Contingencies and Litigation | ||
Legal Matters | ||
As more fully discussed below, we are involved in a variety of claims, lawsuits, investigations and proceedings concerning securities law, intellectual property law, environmental law, employment law and the Employee Retirement Income Security Act (ERISA). 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 Tax and Labor Contingencies | ||
Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals, gross revenue taxes and import taxes and duties. We are disputing these tax matters and intend to vigorously defend our position. 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.The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. | ||
As of September 30, 2013, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of any related interest, amounted to approximately $979 with the decrease from December 31, 2012 balance of approximately $1,010, resulting from currency and the adjustments for closed cases offset by a new case and interest. With respect to the unreserved balance of $979, 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 of September 30, 2013 we had $179 of escrow cash deposits for matters we are disputing, and there are liens on certain Brazilian assets with a net book value of $8 and additional letters of credit of approximately $238, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens would be removed to the extent the matters are resolved in our favor. We routinely assess all these matters as to 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 Against the Company | ||
In re Xerox Corporation Securities Litigation: A consolidated securities law action (consisting of 17 cases) is pending in the United States District Court for the District of Connecticut. Defendants are the Company, Barry Romeril, Paul Allaire and G. Richard Thoman. The consolidated action is a class action on behalf of all persons and entities who purchased Xerox Corporation common stock during the period October 22, 1998 through October 7, 1999 inclusive (Class Period) and who suffered a loss as a result of misrepresentations or omissions by Defendants as alleged by Plaintiffs (the “Class”). The Class alleges that in violation of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended (1934 Act), and SEC Rule 10b-5 thereunder, each of the defendants is liable as a participant in a fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of the Company’s common stock during the Class Period by disseminating materially false and misleading statements and/or concealing material facts relating to the defendants’ alleged failure to disclose the material negative impact that the April 1998 restructuring had on the Company’s operations and revenues. The complaint further alleges that the alleged scheme: (i) deceived the investing public regarding the economic capabilities, sales proficiencies, growth, operations and the intrinsic value of the Company’s common stock; (ii) allowed several corporate insiders, such as the named individual defendants, to sell shares of privately held common stock of the Company while in possession of materially adverse, non-public information; and (iii) caused the individual plaintiffs and the other members of the purported class to purchase common stock of the Company at inflated prices. The complaint seeks unspecified compensatory damages in favor of the plaintiffs and the other members of the purported class against all defendants, jointly and severally, for all damages sustained as a result of defendants’ alleged wrongdoing, including interest thereon, together with reasonable costs and expenses incurred in the action, including counsel fees and expert fees. In 2001, the Court denied the defendants’ motion for dismissal of the complaint. The plaintiffs’ motion for class certification was denied by the Court in 2006, without prejudice to refiling. In February 2007, the Court granted the motion of the International Brotherhood of Electrical Workers Welfare Fund of Local Union No. 164, Robert W. Roten, Robert Agius (Agius) and Georgia Stanley to appoint them as additional lead plaintiffs. In July 2007, the Court denied plaintiffs’ renewed motion for class certification, without prejudice to renewal after the Court holds a pre-filing conference to identify factual disputes the Court will be required to resolve in ruling on the motion. After that conference and Agius’s withdrawal as lead plaintiff and proposed class representative, in February 2008 plaintiffs filed a second renewed motion for class certification. In April 2008, defendants filed their response and motion to disqualify Milberg LLP as a lead counsel. On September 30, 2008, the Court entered an order certifying the class and denying the appointment of Milberg LLP as class counsel. Subsequently, on April 9, 2009, the Court denied defendants’ motion to disqualify Milberg LLP. On November 6, 2008, the defendants filed a motion for summary judgment. On March 29, 2013, the Court granted defendants' motion for summary judgment in its entirety. On April 26, 2013, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit. The appeal process is ongoing. The individual defendants and we deny any wrongdoing and are vigorously defending the action. At this time, we do not believe it is reasonably possible that we will incur additional material losses in excess of the amount we have already accrued for this matter. In the course of litigation, we periodically engage in discussions with plaintiffs’ counsel for possible resolution of this matter. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or a settlement for a significant amount, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment or settlement occurs. | ||
Other Contingencies | ||
We have issued or provided the following guarantees as of September 30, 2013: | ||
• | $451 for letters of credit issued to (i) guarantee our performance under certain services contracts; (ii) support certain insurance programs; and (iii) support our obligations related to the Brazil tax and labor contingencies. | |
• | $759 for outstanding surety bonds. Certain contracts, primarily those involving public sector customers, 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 of default in our performance of 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. | ||
We have service arrangements where we service third party student loans in the Federal Family Education Loan program (FFEL) on behalf of various financial institutions. We service these loans for investors under outsourcing arrangements and do not acquire any servicing rights that are transferable by us to a third party. At September 30, 2013, we serviced a FFEL portfolio of approximately 3.3 million loans with an outstanding principal balance of approximately $47.2 billion. Some servicing agreements contain provisions that, under certain circumstances, require us to purchase the loans from the investor if the loan guaranty has been permanently terminated as a result of a loan default caused by our servicing error. If defaults caused by us are cured during an initial period, any obligation we may have to purchase these loans expires. Loans that we purchase may be subsequently cured, the guaranty reinstated and the loans repackaged for sale to third parties. We evaluate our exposure under our purchase obligations on defaulted loans and establish a reserve for potential losses, or default liability reserve, through a charge to the provision for loss on defaulted loans purchased. The reserve is evaluated periodically and adjusted based upon management’s analysis of the historical performance of the defaulted loans. As of September 30, 2013, other current liabilities include reserves of approximately $3 for losses on defaulted loans purchased. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating segment revenues and profitability | ' | ||||||||||||||||
Operating segment revenues and profitability were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Segment | Segment Profit (Loss) | Segment | Segment Profit (Loss) | ||||||||||||||
Revenue | Revenue | ||||||||||||||||
2013 | |||||||||||||||||
Services | $ | 2,944 | $ | 292 | $ | 8,820 | $ | 866 | |||||||||
Document Technology | 2,159 | 261 | 6,557 | 692 | |||||||||||||
Other | 159 | (55 | ) | 489 | (186 | ) | |||||||||||
Total | $ | 5,262 | $ | 498 | $ | 15,866 | $ | 1,372 | |||||||||
2012 | |||||||||||||||||
Services | $ | 2,847 | $ | 269 | $ | 8,474 | $ | 830 | |||||||||
Document Technology | 2,259 | 245 | 6,967 | 758 | |||||||||||||
Other | 169 | (66 | ) | 533 | (194 | ) | |||||||||||
Total | $ | 5,275 | $ | 448 | $ | 15,974 | $ | 1,394 | |||||||||
Reconciliation to pre-tax income (loss) | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Reconciliation to Pre-tax Income | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Segment Profit | $ | 498 | $ | 448 | $ | 1,372 | $ | 1,394 | |||||||||
Reconciling items: | |||||||||||||||||
Restructuring and asset impairment charges | (35 | ) | (14 | ) | (60 | ) | (63 | ) | |||||||||
Restructuring charges of Fuji Xerox | (3 | ) | (5 | ) | (8 | ) | (15 | ) | |||||||||
Amortization of intangible assets | (83 | ) | (82 | ) | (249 | ) | (246 | ) | |||||||||
Litigation matters (Q1 2013 only) | — | — | 37 | — | |||||||||||||
Equity in net income of unconsolidated affiliates | (43 | ) | (34 | ) | (126 | ) | (105 | ) | |||||||||
Other | 1 | 1 | 1 | 1 | |||||||||||||
Pre-tax Income | $ | 335 | $ | 314 | $ | 967 | $ | 966 | |||||||||
Divestitures_Tables
Divestitures (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Divestitures [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
The components of Discontinued Operations for the periods presented are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | $ | 82 | $ | 149 | $ | 369 | $ | 493 | |||||||||
(Loss) Income from operations | $ | (2 | ) | $ | 3 | $ | 5 | $ | 15 | ||||||||
Loss on disposal | — | — | (23 | ) | — | ||||||||||||
Net (Loss) Income Before Income Taxes | (2 | ) | 3 | (18 | ) | 15 | |||||||||||
Income tax expense | — | (1 | ) | (4 | ) | (5 | ) | ||||||||||
(Loss) Income From Discontinued Operations, Net of Tax | $ | (2 | ) | $ | 2 | $ | (22 | ) | $ | 10 | |||||||
* Revenues from discontinued operations for the three months ended September 30, 2013 only reflects revenues from our European Paper business as the sale has not been completed. Revenues from discontinued operations for the nine months ended September 30, 2013 only reflects five months of revenues from our North American Paper business as a result of the completion of the sale on May 31, 2013. |
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Schedule of accounts receivable, net | ' | |||||||||||||||
Accounts receivable, net were as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Amounts billed or billable | $ | 2,705 | $ | 2,639 | ||||||||||||
Unbilled amounts | 395 | 335 | ||||||||||||||
Allowance for doubtful accounts | (111 | ) | (108 | ) | ||||||||||||
Accounts Receivable, Net | $ | 2,989 | $ | 2,866 | ||||||||||||
Schedule of accounts receivables sales | ' | |||||||||||||||
Accounts receivables sales were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Accounts receivable sales | $ | 814 | $ | 725 | $ | 2,587 | $ | 2,816 | ||||||||
Deferred proceeds | 125 | 122 | 384 | 525 | ||||||||||||
Loss on sales of accounts receivable | 4 | 4 | 13 | 16 | ||||||||||||
Estimated decrease to operating cash flows(1) | (75 | ) | (266 | ) | (42 | ) | (168 | ) | ||||||||
__________________________ | ||||||||||||||||
-1 | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency. The three months ended September 30, 2012 includes $215 of cash outflows related to our terminated U.S. revolving facility. |
Finance_Receivables_Net_Tables
Finance Receivables, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Finance Receivables, Net [Abstract] | ' | |||||||||||||||||||||||||||||||
Sales of Finance Receivables | ' | |||||||||||||||||||||||||||||||
The net impact from the sales of finance receivables on operating cash flows is summarized below: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net cash received for sales of finance receivables(1) | $ | 384 | $ | 311 | $ | 384 | $ | 311 | ||||||||||||||||||||||||
Impact from prior sales of finance receivables(2) | (84 | ) | — | (258 | ) | — | ||||||||||||||||||||||||||
Collections on beneficial interest | 16 | — | 43 | — | ||||||||||||||||||||||||||||
Estimated Increase to Operating Cash Flows | $ | 316 | $ | 311 | $ | 169 | $ | 311 | ||||||||||||||||||||||||
____________________________ | ||||||||||||||||||||||||||||||||
-1 | Net of beneficial interest, fees and expenses. | |||||||||||||||||||||||||||||||
-2 | Represents cash that would have been collected if we had not sold finance receivables. | |||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||||||||||||||||
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | United States | Canada | Europe | Other(3) | Total | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 50 | $ | 31 | $ | 85 | $ | 4 | $ | 170 | ||||||||||||||||||||||
Provision | 2 | 2 | 9 | — | 13 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (4 | ) | (15 | ) | — | (21 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (3 | ) | — | (2 | ) | |||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 51 | $ | 29 | $ | 76 | $ | 4 | $ | 160 | ||||||||||||||||||||||
Provision | 6 | 3 | 10 | 2 | 21 | |||||||||||||||||||||||||||
Charge-offs | (2 | ) | (3 | ) | (14 | ) | (1 | ) | (20 | ) | ||||||||||||||||||||||
Recoveries and other(1) | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 54 | $ | 29 | $ | 74 | $ | 5 | $ | 162 | ||||||||||||||||||||||
Provision | 3 | 3 | 12 | 1 | 19 | |||||||||||||||||||||||||||
Charge-offs | (3 | ) | (4 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | (1 | ) | 4 | ||||||||||||||||||||||||||
Sale of finance receivables | (12 | ) | — | — | — | (12 | ) | |||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 43 | $ | 30 | $ | 76 | $ | 5 | $ | 154 | ||||||||||||||||||||||
Finance receivables as of September 30, 2013 collectively evaluated for impairment(2) | $ | 1,587 | $ | 696 | $ | 2,279 | $ | 270 | $ | 4,832 | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 75 | $ | 33 | $ | 91 | $ | 2 | $ | 201 | ||||||||||||||||||||||
Provision | 2 | 1 | 12 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (4 | ) | (3 | ) | (12 | ) | — | (19 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | 2 | 2 | 1 | 6 | |||||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 74 | $ | 33 | $ | 93 | $ | 3 | $ | 203 | ||||||||||||||||||||||
Provision | 3 | 2 | 11 | 1 | 17 | |||||||||||||||||||||||||||
Charge-offs | (5 | ) | (4 | ) | (15 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | 1 | — | (6 | ) | (1 | ) | (6 | ) | ||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 73 | $ | 31 | $ | 83 | $ | 3 | $ | 190 | ||||||||||||||||||||||
Provision | 3 | 3 | 9 | — | 15 | |||||||||||||||||||||||||||
Charge-offs | (8 | ) | (5 | ) | (11 | ) | — | (24 | ) | |||||||||||||||||||||||
Recoveries and other(1) | — | 2 | 3 | — | 5 | |||||||||||||||||||||||||||
Sale of finance receivables | (9 | ) | — | — | — | (9 | ) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 59 | $ | 31 | $ | 84 | $ | 3 | $ | 177 | ||||||||||||||||||||||
Finance receivables as of September 30, 2012 collectively evaluated for impairment(2) | $ | 2,384 | $ | 811 | $ | 2,466 | $ | 168 | $ | 5,829 | ||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
-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 residual values of $1 and $3, and the allowance for credit losses of $154 and $177 at September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
-3 | Includes developing market countries and smaller units. | |||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||||||||||||||||||||||
Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Investment | Non-investment | Substandard | Total | Investment | Non-investment | Substandard | Total | |||||||||||||||||||||||||
Grade | Grade | Finance | Grade | Grade | Finance | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Finance and other services | $ | 182 | $ | 75 | $ | 35 | $ | 292 | $ | 252 | $ | 147 | $ | 59 | $ | 458 | ||||||||||||||||
Government and education | 666 | 7 | 5 | 678 | 750 | 15 | 4 | 769 | ||||||||||||||||||||||||
Graphic arts | 118 | 58 | 100 | 276 | 92 | 90 | 137 | 319 | ||||||||||||||||||||||||
Industrial | 93 | 20 | 15 | 128 | 115 | 31 | 17 | 163 | ||||||||||||||||||||||||
Healthcare | 77 | 17 | 16 | 110 | 109 | 37 | 14 | 160 | ||||||||||||||||||||||||
Other | 53 | 21 | 29 | 103 | 70 | 39 | 34 | 143 | ||||||||||||||||||||||||
Total United States | 1,189 | 198 | 200 | 1,587 | 1,388 | 359 | 265 | 2,012 | ||||||||||||||||||||||||
Finance and other services | 128 | 102 | 31 | 261 | 151 | 116 | 40 | 307 | ||||||||||||||||||||||||
Government and education | 99 | 10 | 2 | 111 | 117 | 10 | 2 | 129 | ||||||||||||||||||||||||
Graphic arts | 34 | 32 | 23 | 89 | 37 | 34 | 30 | 101 | ||||||||||||||||||||||||
Industrial | 61 | 39 | 18 | 118 | 66 | 40 | 29 | 135 | ||||||||||||||||||||||||
Other | 67 | 39 | 11 | 117 | 75 | 43 | 11 | 129 | ||||||||||||||||||||||||
Total Canada | 389 | 222 | 85 | 696 | 446 | 243 | 112 | 801 | ||||||||||||||||||||||||
France | 268 | 299 | 117 | 684 | 274 | 294 | 134 | 702 | ||||||||||||||||||||||||
U.K./Ireland | 194 | 159 | 43 | 396 | 215 | 155 | 50 | 420 | ||||||||||||||||||||||||
Central(1) | 285 | 407 | 45 | 737 | 315 | 445 | 56 | 816 | ||||||||||||||||||||||||
Southern(2) | 120 | 191 | 59 | 370 | 139 | 230 | 73 | 442 | ||||||||||||||||||||||||
Nordics(3) | 46 | 43 | 3 | 92 | 49 | 36 | 9 | 94 | ||||||||||||||||||||||||
Total Europe | 913 | 1,099 | 267 | 2,279 | 992 | 1,160 | 322 | 2,474 | ||||||||||||||||||||||||
Other | 215 | 51 | 4 | 270 | 148 | 39 | 7 | 194 | ||||||||||||||||||||||||
Total | $ | 2,706 | $ | 1,570 | $ | 556 | $ | 4,832 | $ | 2,974 | $ | 1,801 | $ | 706 | $ | 5,481 | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. | |||||||||||||||||||||||||||||||
Finance Receivables Aging | ' | |||||||||||||||||||||||||||||||
The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 9 | $ | 2 | $ | 1 | $ | 12 | $ | 280 | $ | 292 | $ | 16 | ||||||||||||||||||
Government and education | 21 | 4 | 3 | 28 | 650 | 678 | 27 | |||||||||||||||||||||||||
Graphic arts | 14 | 2 | 1 | 17 | 259 | 276 | 10 | |||||||||||||||||||||||||
Industrial | 4 | 1 | 1 | 6 | 122 | 128 | 6 | |||||||||||||||||||||||||
Healthcare | 3 | 1 | 1 | 5 | 105 | 110 | 5 | |||||||||||||||||||||||||
Other | 3 | 1 | — | 4 | 99 | 103 | 5 | |||||||||||||||||||||||||
Total United States | 54 | 11 | 7 | 72 | 1,515 | 1,587 | 69 | |||||||||||||||||||||||||
Canada | 2 | 3 | 3 | 8 | 688 | 696 | 31 | |||||||||||||||||||||||||
France | 1 | — | — | 1 | 683 | 684 | 34 | |||||||||||||||||||||||||
U.K./Ireland | 2 | 2 | 2 | 6 | 390 | 396 | 4 | |||||||||||||||||||||||||
Central(1) | 5 | 2 | 4 | 11 | 726 | 737 | 25 | |||||||||||||||||||||||||
Southern(2) | 19 | 8 | 13 | 40 | 330 | 370 | 65 | |||||||||||||||||||||||||
Nordics(3) | 2 | — | — | 2 | 90 | 92 | — | |||||||||||||||||||||||||
Total Europe | 29 | 12 | 19 | 60 | 2,219 | 2,279 | 128 | |||||||||||||||||||||||||
Other | 6 | 1 | — | 7 | 263 | 270 | — | |||||||||||||||||||||||||
Total | $ | 91 | $ | 27 | $ | 29 | $ | 147 | $ | 4,685 | $ | 4,832 | $ | 228 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Current | 31-90 | >90 Days | Total Billed | Unbilled | Total | >90 Days | ||||||||||||||||||||||||||
Days | Past Due | Finance | and | |||||||||||||||||||||||||||||
Past Due | Receivables | Accruing | ||||||||||||||||||||||||||||||
Finance and other services | $ | 12 | $ | 3 | $ | 2 | $ | 17 | $ | 441 | $ | 458 | $ | 18 | ||||||||||||||||||
Government and education | 21 | 5 | 3 | 29 | 740 | 769 | 42 | |||||||||||||||||||||||||
Graphic arts | 16 | 1 | 1 | 18 | 301 | 319 | 12 | |||||||||||||||||||||||||
Industrial | 5 | 2 | 1 | 8 | 155 | 163 | 6 | |||||||||||||||||||||||||
Healthcare | 6 | 2 | 1 | 9 | 151 | 160 | 9 | |||||||||||||||||||||||||
Other | 5 | 1 | 1 | 7 | 136 | 143 | 6 | |||||||||||||||||||||||||
Total United States | 65 | 14 | 9 | 88 | 1,924 | 2,012 | 93 | |||||||||||||||||||||||||
Canada | 2 | 3 | 2 | 7 | 794 | 801 | 30 | |||||||||||||||||||||||||
France | — | 5 | 1 | 6 | 696 | 702 | 22 | |||||||||||||||||||||||||
U.K./Ireland | 2 | — | 2 | 4 | 416 | 420 | 2 | |||||||||||||||||||||||||
Central(1) | 3 | 2 | 4 | 9 | 807 | 816 | 30 | |||||||||||||||||||||||||
Southern(2) | 20 | 8 | 14 | 42 | 400 | 442 | 72 | |||||||||||||||||||||||||
Nordics(3) | 1 | — | — | 1 | 93 | 94 | — | |||||||||||||||||||||||||
Total Europe | 26 | 15 | 21 | 62 | 2,412 | 2,474 | 126 | |||||||||||||||||||||||||
Other | 2 | 1 | — | 3 | 191 | 194 | — | |||||||||||||||||||||||||
Total | $ | 95 | $ | 33 | $ | 32 | $ | 160 | $ | 5,321 | $ | 5,481 | $ | 249 | ||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Switzerland, Germany, Austria, Belgium and Holland. | |||||||||||||||||||||||||||||||
-2 | Italy, Greece, Spain and Portugal. | |||||||||||||||||||||||||||||||
-3 | Sweden, Norway, Denmark and Finland. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
The following is a summary of Inventories by major category: | ||||||||
September 30, 2013 | 31-Dec-12 | |||||||
Finished goods | $ | 961 | $ | 844 | ||||
Work-in-process | 76 | 61 | ||||||
Raw materials | 115 | 106 | ||||||
Total Inventories | $ | 1,152 | $ | 1,011 | ||||
Investment_in_Affiliates_at_Eq1
Investment in Affiliates, at Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Equity in net income (loss) of unconsolidated affiliates | ' | |||||||||||||||
Our equity in net income of our unconsolidated affiliates was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Fuji Xerox | $ | 40 | $ | 32 | $ | 117 | $ | 97 | ||||||||
Other investments | 3 | 2 | 9 | 8 | ||||||||||||
Total Equity in Net Income of Unconsolidated Affiliates | $ | 43 | $ | 34 | $ | 126 | $ | 105 | ||||||||
Condensed financial data of Fuji Xerox | ' | |||||||||||||||
Condensed financial data of Fuji Xerox was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Summary of Operations: | ||||||||||||||||
Revenues | $ | 2,909 | $ | 3,192 | $ | 8,653 | $ | 9,586 | ||||||||
Costs and expenses | 2,670 | 2,988 | 7,960 | 8,928 | ||||||||||||
Income before income taxes | 239 | 204 | 693 | 658 | ||||||||||||
Income tax expense | 72 | 68 | 197 | 246 | ||||||||||||
Net Income | 167 | 136 | 496 | 412 | ||||||||||||
Less: Net income – noncontrolling interests | 1 | 2 | 4 | 4 | ||||||||||||
Net Income – Fuji Xerox | $ | 166 | $ | 134 | $ | 492 | $ | 408 | ||||||||
Weighted Average Exchange Rate(1) | 98.89 | 78.61 | 96.61 | 79.47 | ||||||||||||
_____________________________ | ||||||||||||||||
-1 | Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring_Programs_Tables
Restructuring Programs (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring Program Activity | ' | |||||||||||||||
Information related to restructuring program activity during the nine months ended September 30, 2013 is outlined below: | ||||||||||||||||
Severance and | Lease Cancellation | Asset Impairments(2) | Total | |||||||||||||
Related Costs | and Other Costs | |||||||||||||||
Balance at December 31, 2012 | $ | 123 | $ | 7 | $ | — | $ | 130 | ||||||||
Provision | 78 | — | — | 78 | ||||||||||||
Reversals | (18 | ) | — | — | (18 | ) | ||||||||||
Net Current Period Charges - Continuing Operations(1) | 60 | — | — | 60 | ||||||||||||
Discontinued operations(3) | 4 | — | — | 4 | ||||||||||||
Total Net Current Period Charges | 64 | — | — | 64 | ||||||||||||
Charges against reserve and currency | (105 | ) | (2 | ) | — | (107 | ) | |||||||||
Balance at September 30, 2013 | $ | 82 | $ | 5 | $ | — | $ | 87 | ||||||||
_____________________________ | ||||||||||||||||
-1 | Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown. | |||||||||||||||
-2 | Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. | |||||||||||||||
-3 | Refer to Note 5 - Divestitures for additional information regarding discontinued operations. | |||||||||||||||
Reconciliation to the Condensed Consolidated Statements of Cash Flows | ' | |||||||||||||||
Reconciliation to the Condensed Consolidated Statements of Cash Flows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Charges against reserve | $ | (34 | ) | $ | (29 | ) | $ | (107 | ) | $ | (114 | ) | ||||
Asset impairment | — | — | — | 2 | ||||||||||||
Effects of foreign currency and other non-cash items | — | (1 | ) | — | (1 | ) | ||||||||||
Restructuring Cash Payments | $ | (34 | ) | $ | (30 | ) | $ | (107 | ) | $ | (113 | ) | ||||
Total Costs incurred with Restructuring programs, by segment | ' | |||||||||||||||
The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Services | $ | 10 | $ | 6 | $ | 18 | $ | 25 | ||||||||
Document Technology | 25 | 8 | 42 | 37 | ||||||||||||
Other | — | — | — | 1 | ||||||||||||
Total Net Restructuring Charges | $ | 35 | $ | 14 | $ | 60 | $ | 63 | ||||||||
Debt_Net_PaymentsProceeds_on_D
Debt Net Payments/Proceeds on Debt (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule Of Interest Expense And Interest Income | ' | |||||||||||||||
Interest Expense and Income | ||||||||||||||||
Interest expense and interest income were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense(1) | $ | 100 | $ | 105 | $ | 308 | $ | 325 | ||||||||
Interest income(2) | 136 | 163 | 373 | 461 | ||||||||||||
____________________________ | ||||||||||||||||
-1 | Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | |||||||||||||||
-2 | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | |||||||||||||||
Net Payments/Proceeds on Debt | ' | |||||||||||||||
Net (Payments) Proceeds on Debt | ||||||||||||||||
Net proceeds on debt as shown on the Condensed Consolidated Statements of Cash Flows was as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Net proceeds on short-term debt | $ | 6 | $ | 742 | ||||||||||||
Proceeds from issuance of long-term debt(1) | 102 | 1,112 | ||||||||||||||
Payments on long-term debt | (1,039 | ) | (1,112 | ) | ||||||||||||
Net (Payments) Proceeds on Debt | $ | (931 | ) | $ | 742 | |||||||||||
____________________________ | ||||||||||||||||
-1 | Includes net proceeds of $39 from the sale and capital leaseback of a building in the U.S. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Forward Foreign Exchange Contracts | ' | ||||||||||||||||||
The following is a summary of the primary hedging positions and corresponding fair values as of September 30, 2013: | |||||||||||||||||||
Currency Hedged (Buy/Sell) | Gross | Fair Value | |||||||||||||||||
Notional | Asset | ||||||||||||||||||
Value | (Liability)(1) | ||||||||||||||||||
Japanese Yen/U.S. Dollar | $ | 574 | $ | (10 | ) | ||||||||||||||
U.S. Dollar/Euro | 513 | (9 | ) | ||||||||||||||||
Euro/U.K. Pound Sterling | 383 | (2 | ) | ||||||||||||||||
Japanese Yen/Euro | 367 | (16 | ) | ||||||||||||||||
U.K. Pound Sterling/U.S. Dollar | 242 | — | |||||||||||||||||
U.K. Pound Sterling/Euro | 146 | 2 | |||||||||||||||||
Canadian Dollar/Euro | 97 | — | |||||||||||||||||
Euro/U.S. Dollar | 92 | 1 | |||||||||||||||||
Mexican Peso/U.S. Dollar | 67 | (1 | ) | ||||||||||||||||
Indian Rupee/U.S. Dollar | 54 | (1 | ) | ||||||||||||||||
Philippine Peso/U.S. Dollar | 47 | — | |||||||||||||||||
U.S. Dollar/Japanese Yen | 38 | — | |||||||||||||||||
Euro/Danish Krone | 28 | — | |||||||||||||||||
U.S. Dollar/Peruvian Nuevo Sol | 26 | — | |||||||||||||||||
All Other | 152 | — | |||||||||||||||||
Total Foreign Exchange Hedging | $ | 2,826 | $ | (36 | ) | ||||||||||||||
__________________ | |||||||||||||||||||
-1 | Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at September 30, 2013. | ||||||||||||||||||
Summary of Derivative Instruments Fair Value | ' | ||||||||||||||||||
The following table provides a summary of the fair value amounts of our derivative instruments: | |||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | September 30, 2013 | December 31, 2012 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 4 | $ | 3 | ||||||||||||||
Other current liabilities | (37 | ) | (51 | ) | |||||||||||||||
Net Designated Derivative Liability | $ | (33 | ) | $ | (48 | ) | |||||||||||||
Derivatives NOT Designated as Hedging Instruments | |||||||||||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 7 | $ | 8 | ||||||||||||||
Other current liabilities | (10 | ) | (31 | ) | |||||||||||||||
Net Undesignated Derivative Asset (Liability) | $ | (3 | ) | $ | (23 | ) | |||||||||||||
Summary of Derivatives | Total Derivative Assets | $ | 11 | $ | 11 | ||||||||||||||
Total Derivative Liabilities | (47 | ) | (82 | ) | |||||||||||||||
Net Derivative Liability | $ | (36 | ) | $ | (71 | ) | |||||||||||||
Summary of Cash Flow Hedges Gains (Losses) | ' | ||||||||||||||||||
The following tables provide a summary of gains (losses) on derivative instruments: | |||||||||||||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) | Location of Derivative | Gain (Loss) Reclassified | ||||||||||||||||
Hedging Relationships | Recognized in OCI | Gain (Loss) Reclassified | from AOCI to Income | ||||||||||||||||
(Effective Portion) | from AOCI into Income | (Effective Portion) | |||||||||||||||||
Three Months | (Effective Portion) | Three Months | |||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts – forwards | $ | (13 | ) | $ | 8 | Cost of sales | $ | (35 | ) | $ | 8 | ||||||||
Derivatives in Cash Flow | Derivative Gain (Loss) | Location of Derivative | Gain (Loss) Reclassified | ||||||||||||||||
Hedging Relationships | Recognized in OCI | Gain (Loss) Reclassified | from AOCI to Income | ||||||||||||||||
(Effective Portion) | from AOCI into Income | (Effective Portion) | |||||||||||||||||
Nine Months | (Effective Portion) | Nine Months | |||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts – forwards | $ | (81 | ) | $ | 16 | Cost of sales | $ | (89 | ) | $ | 29 | ||||||||
Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses) | ' | ||||||||||||||||||
The following table provides a summary of gains (losses) on non-designated derivative instruments: | |||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Location of Derivative Gain (Loss) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts – forwards | Other expense – Currency losses, net | $ | (12 | ) | $ | (6 | ) | $ | (45 | ) | $ | (1 | ) |
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
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, 2013 | December 31, 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts-forwards | $ | 11 | $ | 11 | ||||||||||||
Deferred compensation investments in cash surrender life insurance | 85 | 77 | ||||||||||||||
Deferred compensation investments in mutual funds | 27 | 23 | ||||||||||||||
Total | $ | 123 | $ | 111 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts-forwards | $ | 47 | $ | 82 | ||||||||||||
Deferred compensation plan liabilities | 120 | 110 | ||||||||||||||
Total | $ | 167 | $ | 192 | ||||||||||||
Estimated fair values of financial assets and liabilities not measured at fair value on a recurring basis | ' | |||||||||||||||
The estimated fair values of our other financial assets and liabilities not measured at fair value on a recurring basis were as follows: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 948 | $ | 948 | $ | 1,246 | $ | 1,246 | ||||||||
Accounts receivable, net | 2,989 | 2,989 | 2,866 | 2,866 | ||||||||||||
Short-term debt | 1,135 | 1,137 | 1,042 | 1,051 | ||||||||||||
Long-term debt | 6,406 | 6,857 | 7,447 | 8,040 | ||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Components of net periodic benefit cost and other changes in plan assets and benefit obligations | ' | ||||||||||||||||||||||||
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows for the three months ended September 30: | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||
Service cost | $ | 2 | $ | 28 | $ | 24 | $ | 21 | $ | 2 | $ | 3 | |||||||||||||
Interest cost | 37 | 47 | 64 | 66 | 8 | 9 | |||||||||||||||||||
Expected return on plan assets | (41 | ) | (53 | ) | (78 | ) | (76 | ) | — | — | |||||||||||||||
Recognized net actuarial loss | 2 | 12 | 20 | 14 | — | — | |||||||||||||||||||
Amortization of prior service credit | (1 | ) | (6 | ) | (1 | ) | — | (10 | ) | (10 | ) | ||||||||||||||
Recognized settlement loss | 20 | 25 | — | — | — | — | |||||||||||||||||||
Defined Benefit Plans | 19 | 53 | 29 | 25 | — | 2 | |||||||||||||||||||
Defined contribution plans | 15 | 7 | 7 | 10 | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | 34 | 60 | 36 | 35 | — | 2 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||
Net actuarial gain | — | — | — | — | — | (31 | ) | ||||||||||||||||||
Amortization of prior service credit | 1 | 6 | 1 | — | 10 | 10 | |||||||||||||||||||
Amortization of net actuarial loss | (22 | ) | (37 | ) | (20 | ) | (14 | ) | — | — | |||||||||||||||
Total Recognized in Other Comprehensive Income(1) | (21 | ) | (31 | ) | (19 | ) | (14 | ) | 10 | (21 | ) | ||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 13 | $ | 29 | $ | 17 | $ | 21 | $ | 10 | $ | (19 | ) | ||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 16 - Other Comprehensive Income for related tax effects and the after-tax amounts. | ||||||||||||||||||||||||
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows for the nine months ended September 30: | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Retiree Health | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||
Service cost | $ | 7 | $ | 84 | $ | 69 | $ | 62 | $ | 7 | $ | 7 | |||||||||||||
Interest cost | 109 | 139 | 193 | 202 | 25 | 31 | |||||||||||||||||||
Expected return on plan assets | (130 | ) | (157 | ) | (235 | ) | (229 | ) | — | — | |||||||||||||||
Recognized net actuarial loss | 16 | 39 | 58 | 40 | 1 | 1 | |||||||||||||||||||
Amortization of prior service credit | (1 | ) | (17 | ) | (1 | ) | — | (32 | ) | (31 | ) | ||||||||||||||
Recognized curtailment gain | — | — | (6 | ) | — | — | — | ||||||||||||||||||
Recognized settlement loss | 99 | 55 | — | — | — | — | |||||||||||||||||||
Defined Benefit Plans | 100 | 143 | 78 | 75 | 1 | 8 | |||||||||||||||||||
Defined contribution plans | 53 | 22 | 20 | 26 | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | 153 | 165 | 98 | 101 | 1 | 8 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||
Net actuarial gain | 11 | (19 | ) | — | — | (36 | ) | (31 | ) | ||||||||||||||||
Amortization of prior service credit | 1 | 17 | 1 | — | 32 | 31 | |||||||||||||||||||
Amortization of net actuarial loss | (115 | ) | (94 | ) | (58 | ) | (40 | ) | (1 | ) | (1 | ) | |||||||||||||
Total Recognized in Other Comprehensive Income(1) | (103 | ) | (96 | ) | (57 | ) | (40 | ) | (5 | ) | (1 | ) | |||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 50 | $ | 69 | $ | 41 | $ | 61 | $ | (4 | ) | $ | 7 | ||||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 16 - Other Comprehensive Income for related tax effects and the after-tax amounts. |
Shareholders_Equity_Tables
Shareholders Equity (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | |||||||||||||||||||||||||||||||
Common | Additional | Treasury Stock | Retained | AOCL(1) | Xerox | Non- | Total | |||||||||||||||||||||||||
Stock | Paid-in | Earnings | Shareholders’ | controlling | Equity | |||||||||||||||||||||||||||
Capital | Equity | Interests | ||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,239 | $ | 5,622 | $ | (104 | ) | $ | 7,991 | $ | (3,227 | ) | $ | 11,521 | $ | 143 | $ | 11,664 | ||||||||||||||
Comprehensive income (loss), net | — | — | — | 853 | (50 | ) | 803 | 15 | 818 | |||||||||||||||||||||||
Cash dividends declared- common stock(2) | — | — | — | (218 | ) | — | (218 | ) | — | (218 | ) | |||||||||||||||||||||
Cash dividends declared - preferred stock(3) | — | — | — | (18 | ) | — | (18 | ) | — | (18 | ) | |||||||||||||||||||||
Stock option and incentive plans, net | 24 | 106 | — | — | — | 130 | — | 130 | ||||||||||||||||||||||||
Payments to acquire treasury stock, including fees | — | — | (172 | ) | — | — | (172 | ) | — | (172 | ) | |||||||||||||||||||||
Cancellation of treasury stock | (16 | ) | (98 | ) | 114 | — | — | — | — | — | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 1,247 | $ | 5,630 | $ | (162 | ) | $ | 8,608 | $ | (3,277 | ) | $ | 12,046 | $ | 134 | $ | 12,180 | ||||||||||||||
Common | Additional | Treasury Stock | Retained | AOCL(1) | Xerox | Non- | Total | |||||||||||||||||||||||||
Stock | Paid-in | Earnings | Shareholders’ | controlling | Equity | |||||||||||||||||||||||||||
Capital | Equity | Interests | ||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,353 | $ | 6,317 | $ | (124 | ) | $ | 7,046 | $ | (2,716 | ) | $ | 11,876 | $ | 149 | $ | 12,025 | ||||||||||||||
Comprehensive income, net | — | — | — | 860 | 170 | 1,030 | 20 | 1,050 | ||||||||||||||||||||||||
Cash dividends declared-common stock(2) | — | — | — | (172 | ) | — | (172 | ) | — | (172 | ) | |||||||||||||||||||||
Cash dividends declared-preferred stock(3) | — | — | — | (18 | ) | — | (18 | ) | — | (18 | ) | |||||||||||||||||||||
Contribution of common stock to U.S. pension plan | 15 | 115 | — | — | — | 130 | — | 130 | ||||||||||||||||||||||||
Stock option and incentive plans, net | 17 | 81 | — | — | — | 98 | — | 98 | ||||||||||||||||||||||||
Payments to acquire treasury stock, including fees | — | — | (718 | ) | — | — | (718 | ) | — | (718 | ) | |||||||||||||||||||||
Cancellation of treasury stock | (63 | ) | (418 | ) | 481 | — | — | — | — | — | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (29 | ) | (29 | ) | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 1,322 | $ | 6,095 | $ | (361 | ) | $ | 7,716 | $ | (2,546 | ) | $ | 12,226 | $ | 140 | $ | 12,366 | ||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||
-1 | Refer to Note 16 - Other Comprehensive Income for components of AOCL. | |||||||||||||||||||||||||||||||
-2 | Cash dividends declared on common stock of $0.0575 per share in all quarters of 2013 and $0.0425 per share in all quarters of 2012. | |||||||||||||||||||||||||||||||
-3 | Cash dividends declared on preferred stock of $20.00 per share in all quarters of 2013 and 2012. | |||||||||||||||||||||||||||||||
Schedule of Treasury Stock by Class | ' | |||||||||||||||||||||||||||||||
The following is a summary of the purchases of common stock made during the nine months ended September 30, 2013 under our authorized stock repurchase programs (shares in thousands): | ||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
December 31, 2012 | 14,924 | $ | 104 | |||||||||||||||||||||||||||||
Purchases (1) | 17,372 | 172 | ||||||||||||||||||||||||||||||
Cancellations | (16,284 | ) | (114 | ) | ||||||||||||||||||||||||||||
September 30, 2013 | 16,012 | $ | 162 | |||||||||||||||||||||||||||||
____________________________ | ||||||||||||||||||||||||||||||||
-1 | Includes associated fees. |
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||||||||||
Other Comprehensive Income is comprised of the following: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | ||||||||||||||||||||||||||
Translation Adjustments Gains (Losses) | $ | 266 | $ | 269 | $ | 343 | $ | 344 | $ | (185 | ) | $ | (178 | ) | $ | 176 | $ | 181 | |||||||||||||||
Unrealized (Losses) Gains: | |||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges - (losses) gains | (13 | ) | (11 | ) | 8 | 4 | (81 | ) | (57 | ) | 16 | 11 | |||||||||||||||||||||
Changes in cash flow hedges reclassed to earnings(1) | 35 | 24 | (8 | ) | (6 | ) | 89 | 62 | (29 | ) | (22 | ) | |||||||||||||||||||||
Other gains | 1 | 1 | — | — | 2 | 2 | — | — | |||||||||||||||||||||||||
Net Unrealized Gains (Losses) | 23 | 14 | — | (2 | ) | 10 | 7 | (13 | ) | (11 | ) | ||||||||||||||||||||||
Defined Benefit Plans Gains (Losses): | |||||||||||||||||||||||||||||||||
Net actuarial gain | — | — | 31 | 19 | 25 | 15 | 50 | 31 | |||||||||||||||||||||||||
Prior service amortization(2) | (12 | ) | (7 | ) | (16 | ) | (10 | ) | (34 | ) | (21 | ) | (48 | ) | (30 | ) | |||||||||||||||||
Actuarial loss amortization(2) | 42 | 29 | 51 | 33 | 174 | 116 | 135 | 88 | |||||||||||||||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | 11 | 11 | 7 | 7 | 7 | 7 | (34 | ) | (34 | ) | |||||||||||||||||||||||
Other (losses) gains(4) | (71 | ) | (71 | ) | (59 | ) | (59 | ) | 4 | 4 | (55 | ) | (55 | ) | |||||||||||||||||||
Change in Defined Benefit Plans (Losses) Gains | (30 | ) | (38 | ) | 14 | (10 | ) | 176 | 121 | 48 | — | ||||||||||||||||||||||
Other Comprehensive Income (Loss) Attributable to Xerox | $ | 259 | $ | 245 | $ | 357 | $ | 332 | $ | 1 | $ | (50 | ) | $ | 211 | $ | 170 | ||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||
-1 | Reclassified to Cost of sales - refer to Note 12 - Financial Instruments for additional information regarding our cash flow hedges. | ||||||||||||||||||||||||||||||||
-2 | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information. | ||||||||||||||||||||||||||||||||
-3 | Represents our share of Fuji Xerox's benefit plan changes. | ||||||||||||||||||||||||||||||||
-4 | Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits included in AOCL. | ||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||||||||||
AOCL is comprised of the following: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Cumulative translation adjustments | $ | (1,004 | ) | $ | (826 | ) | |||||||||||||||||||||||||||
Benefit plans net actuarial losses and prior service credits(1) | (2,243 | ) | (2,364 | ) | |||||||||||||||||||||||||||||
Other unrealized losses, net | (30 | ) | (37 | ) | |||||||||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ | (3,277 | ) | $ | (3,227 | ) | |||||||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||||||||||
-1 | Includes our share of Fuji Xerox. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Basic and Diluted Earnings per Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic Earnings per Share: | ||||||||||||||||
Net income from continuing operations attributable to Xerox | $ | 288 | $ | 280 | $ | 875 | $ | 850 | ||||||||
Accrued dividends on preferred stock | (6 | ) | (6 | ) | (18 | ) | (18 | ) | ||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 282 | 274 | 857 | 832 | ||||||||||||
Net (loss) income from discontinued operations attributable to Xerox | (2 | ) | 2 | (22 | ) | 10 | ||||||||||
Adjusted Net Income Available to Common Shareholders | $ | 280 | $ | 276 | $ | 835 | $ | 842 | ||||||||
Weighted-average common shares outstanding | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 | ||||||||||||
Basic Earnings (Loss) per Share: | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.21 | $ | 0.7 | $ | 0.63 | ||||||||
Discontinued operations | — | — | (0.02 | ) | 0.01 | |||||||||||
Total | $ | 0.23 | $ | 0.21 | $ | 0.68 | $ | 0.64 | ||||||||
Diluted Earnings per Share: | ||||||||||||||||
Net income from continuing operations attributable to Xerox | $ | 288 | $ | 280 | $ | 875 | $ | 850 | ||||||||
Accrued dividends on preferred stock | — | (6 | ) | — | (18 | ) | ||||||||||
Interest on convertible securities, net | — | — | 1 | 1 | ||||||||||||
Adjusted Net Income From Continuing Operations Available to Common Shareholders | $ | 288 | $ | 274 | $ | 876 | $ | 833 | ||||||||
Net (loss) income from discontinued operations attributable to Xerox | (2 | ) | 2 | (22 | ) | 10 | ||||||||||
Adjusted Net Income Available to Common Shareholders | $ | 286 | $ | 276 | $ | 854 | $ | 843 | ||||||||
Weighted-average common shares outstanding | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 | ||||||||||||
Common shares issuable with respect to: | ||||||||||||||||
Stock options | 5,225 | 3,335 | 5,422 | 5,369 | ||||||||||||
Restricted stock and performance shares | 14,910 | 20,028 | 18,429 | 21,227 | ||||||||||||
Convertible preferred stock | 26,966 | — | 26,966 | — | ||||||||||||
Convertible securities | 1,992 | 1,992 | 1,992 | 1,992 | ||||||||||||
Adjusted Weighted Average Common Shares Outstanding | 1,285,578 | 1,318,868 | 1,283,596 | 1,349,010 | ||||||||||||
Diluted Earnings (Loss) per Share: | ||||||||||||||||
Continuing operations | $ | 0.22 | $ | 0.21 | $ | 0.68 | $ | 0.62 | ||||||||
Discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Total | $ | 0.22 | $ | 0.21 | $ | 0.67 | $ | 0.62 | ||||||||
The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive (shares in thousands): | ||||||||||||||||
Stock options | 13,102 | 38,430 | 12,905 | 36,395 | ||||||||||||
Restricted stock and performance shares | 12,016 | 24,327 | 8,497 | 23,128 | ||||||||||||
Convertible preferred stock | — | 26,966 | — | 26,966 | ||||||||||||
Total Anti-Dilutive Securities | 25,118 | 89,723 | 21,402 | 86,489 | ||||||||||||
Dividends per Common Share | $ | 0.0575 | $ | 0.0425 | $ | 0.1725 | $ | 0.1275 | ||||||||
Segment_Reporting_Segment_Reve
Segment Reporting, Segment Revenue and Segment Profit (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Primary Reportable Segments, Number | ' | ' | 2 | ' |
Segment Revenue | $5,262 | $5,275 | $15,866 | $15,974 |
Segment Profit (Loss) | 498 | 448 | 1,372 | 1,394 |
Services [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment Revenue | 2,944 | 2,847 | 8,820 | 8,474 |
Segment Profit (Loss) | 292 | 269 | 866 | 830 |
Services [Member] | Outsourcing Offerings [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Outsourcing Service Offerings, Number | ' | ' | 3 | ' |
Document Technology Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment Revenue | 2,159 | 2,259 | 6,557 | 6,967 |
Segment Profit (Loss) | 261 | 245 | 692 | 758 |
All Other Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment Revenue | 159 | 169 | 489 | 533 |
Segment Profit (Loss) | ($55) | ($66) | ($186) | ($194) |
Segment_Reporting_Reconciliati
Segment Reporting, Reconciliation Of Operating Profit Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Segment Profit | $498 | $448 | $1,372 | $1,394 |
Reconciling items: | ' | ' | ' | ' |
Restructuring and asset impairment charges | -35 | -14 | -60 | -63 |
Restructuring charges of Fuji Xerox | -3 | -5 | -8 | -15 |
Amortization of intangible assets | -83 | -82 | -249 | -246 |
Litigation matters (Q1 2013 only) | 0 | 0 | 37 | 0 |
Equity in net income of unconsolidated affiliates | -43 | -34 | -126 | -105 |
Other | 1 | 1 | 1 | 1 |
Pre-tax Income | $335 | $314 | $967 | $966 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Zeno Office Solutions, Inc. [Member] | Impika [Member] | Document Technology [Member] | Services Segment [Member] | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||
businesses | businesses | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | ' | ' | 1-Apr-13 | 28-Feb-13 | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $24 | $156 | $158 | $243 | $59 | $53 | $11 | $31 |
Number of Businesses Acquired | ' | ' | ' | ' | ' | ' | 1 | 3 |
Divestitures_Details
Divestitures (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||||
Proceeds from sale of businesses | $0 | $10 | $0 | $11 | $0 | ||||
Assets Held-for-sale, at Carrying Value | 47 | ' | ' | 47 | ' | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | ' | ' | 3,300 | ' | ||||
Revenues | 82 | [1] | ' | 149 | [1] | 369 | [1] | 493 | [1] |
(Loss) Income from operations | -2 | ' | 3 | 5 | 15 | ||||
Loss on disposal | 0 | -23 | 0 | -23 | 0 | ||||
Net (Loss) Income Before Income Taxes | -2 | ' | 3 | -18 | 15 | ||||
Income tax expense | 0 | ' | -1 | -4 | -5 | ||||
(Loss) Income From Discontinued Operations, Net of Tax | ($2) | ' | $2 | ($22) | $10 | ||||
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | 300 | ' | ' | ' | ||||
[1] | * Revenues from discontinued operations for the three months ended September 30, 2013 only reflects revenues from our European Paper business as the sale has not been completed. Revenues from discontinued operations for the nine months ended September 30, 2013 only reflects five months of revenues from our North American Paper business as a result of the completion of the sale on May 31, 2013. |
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | ||||||||
Receivables [Abstract] | ' | ' | ' | ' | ' | ' | ' | ||||
Amounts billed or billable | ' | $2,705 | $2,639 | ' | ' | ' | ' | ||||
Unbilled amounts | ' | 395 | 335 | ' | ' | ' | ' | ||||
Allowance for doubtful accounts | ' | -111 | -108 | ' | ' | ' | ' | ||||
Accounts Receivable, Net | ' | 2,989 | 2,866 | ' | ' | ' | ' | ||||
Billable contracts receivable to be invoiced in the subsequent month | ' | 1,045 | 1,049 | ' | ' | ' | ' | ||||
Accounts Receivable Sales Arrangements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ||||
Deferred proceeds receivables from sales of accounts receivables | ' | 129 | 116 | ' | ' | ' | ' | ||||
Remaining account receivable sold and derecognized | ' | 740 | 766 | ' | ' | ' | ' | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||||
Accounts receivable sales | ' | ' | ' | 814 | 725 | 2,587 | 2,816 | ||||
Deferred proceeds | ' | ' | ' | 125 | 122 | 384 | 525 | ||||
Loss on sales of accounts receivable | ' | ' | ' | 4 | 4 | 13 | 16 | ||||
Estimated decrease to operating cash flows | ' | ' | ' | -75 | [1] | -266 | [1] | -42 | [1] | -168 | [1] |
Payments to Acquire Receivables | ($215) | ' | ' | ' | ' | ' | ' | ||||
[1] | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i)Â the deferred proceeds, (ii)Â collections prior to the end of the quarter and (iii)Â currency. The three months ended September 30, 2012 includes $215 of cash outflows related to our terminated U.S. revolving facility. |
Finance_Receivables_Net_Sale_o
Finance Receivables, Net Sale of Finance Receivables (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Financing Receivable [Member] | Financing Receivable [Member] | Financing Receivable [Member] | Financing Receivable [Member] | Financing Receivable [Member] | Finance receivables sales in 2013 [Member] | Finance receivables sales in 2013 [Member] | Finance receivables sold in 2012 [Member] | Finance receivables sold in 2012 [Member] | Finance receivables sold in 2012 [Member] | Credit Losses [Member] | Prepayment rate [Member] | Risk adjusted discount rate [Member] | |||||||||
Finance receivables sales in 2013 [Member] | Finance receivables sales in 2013 [Member] | Finance receivables sales in 2013 [Member] | |||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Carrying value of leased finance receivables sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | $419 | ' | ' | $682 | ' | ' | ' | ' | ||||
Proceeds from Sale of Finance Receivables | ' | ' | ' | ' | 384 | [1] | ' | 311 | [1] | 384 | [1] | 311 | [1] | 384 | ' | ' | 630 | ' | ' | ' | ' |
Finance Receivables Beneficial Interest from Purchaser | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | 101 | ' | ' | ' | ' | ||||
Finance Receivables Sold and Derecognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 416 | 416 | ' | ' | 445 | ' | ' | ' | ||||
Finance receivables sold and derecognized sales value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 456 | 456 | ' | ' | 485 | ' | ' | ' | ||||
Gain on Sale of Receivalbes, Pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | 23 | 44 | ' | ' | ' | ' | ||||
Fees and Expenses on Sale of Finance Recievables | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 5 | ' | ' | ' | ' | ||||
Servicing Fee Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01 | ' | ' | ' | ' | ' | ' | ' | ||||
Sale of Receivables Servicing Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ||||
receivables credit loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' | ||||
Fair Value Inputs, Prepayment Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.30% | ' | ||||
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ||||
Sensitivity analysis expected future cash flows assumptions 10% variation affect | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | ' | ' | ' | ' | ' | ' | ||||
Sensitivity analysis expected future cash flows assumptions 20% variation affect | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.2 | ' | ' | ' | ' | ' | ' | ||||
Sensitivity analysis expected future cash flows assumptions variation beneficial interest amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ||||
Beneficial interest from sale of finance receivables | 133 | ' | 133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Beneficial Interest, Interest in Other Current Assets | 58 | ' | 58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Beneficial Interest, Interest in Other Long-term Assets | 75 | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Finance Receivable Beneficial Interest Weighted Average Life | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Finance receivables impact from prior period receivable sales | ' | ' | ' | ' | -84 | [2] | ' | 0 | [2] | -258 | [2] | 0 | [2] | ' | ' | ' | ' | ' | ' | ' | ' |
Collections on beneficial interest | 16 | 0 | 43 | 0 | ' | 16 | 0 | 43 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Estimated Increase to Operating Cash Flows | ' | ' | ' | ' | $316 | ' | $311 | $169 | $311 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | (1)Net of beneficial interest, fees and expenses. | ||||||||||||||||||||
[2] | (2)Represents cash that would have been collected if we had not sold finance receivables. |
Finance_Receivables_Net_Detail
Finance Receivables, Net (Details) (USD $) | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | $162 | $160 | $170 | $190 | $203 | $201 | ||||||
Provision | 19 | 21 | 13 | 15 | 17 | 15 | ||||||
Charge-offs | -19 | -20 | -21 | -24 | -24 | -19 | ||||||
Recoveries and other | 4 | 1 | [1] | -2 | [1] | 5 | -6 | [1] | 6 | [1] | ||
Sale of finance receivables | -12 | ' | ' | -9 | ' | ' | ||||||
Ending Balance | 154 | 162 | 160 | 177 | 190 | 203 | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 4,832 | [2] | ' | ' | 5,829 | [2] | ' | ' | ||||
Residual values not included in the impairment evaluation | 1 | ' | ' | 3 | ' | ' | ||||||
Allowance for credit losses not included in the impairment evaluation | 154 | ' | ' | 177 | ' | ' | ||||||
United States | ' | ' | ' | ' | ' | ' | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | 54 | 51 | 50 | 73 | 74 | 75 | ||||||
Provision | 3 | 6 | 2 | 3 | 3 | 2 | ||||||
Charge-offs | -3 | -2 | -2 | -8 | -5 | -4 | ||||||
Recoveries and other | 1 | -1 | [1] | 1 | [1] | 0 | 1 | [1] | 1 | [1] | ||
Sale of finance receivables | -12 | ' | ' | -9 | ' | ' | ||||||
Ending Balance | 43 | 54 | 51 | 59 | 73 | 74 | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 1,587 | [2] | ' | ' | 2,384 | [2] | ' | ' | ||||
Canada | ' | ' | ' | ' | ' | ' | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | 29 | 29 | 31 | 31 | 33 | 33 | ||||||
Provision | 3 | 3 | 2 | 3 | 2 | 1 | ||||||
Charge-offs | -4 | -3 | -4 | -5 | -4 | -3 | ||||||
Recoveries and other | 2 | 0 | [1] | 0 | [1] | 2 | 0 | [1] | 2 | [1] | ||
Sale of finance receivables | 0 | ' | ' | 0 | ' | ' | ||||||
Ending Balance | 30 | 29 | 29 | 31 | 31 | 33 | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 696 | [2] | ' | ' | 811 | [2] | ' | ' | ||||
Europe | ' | ' | ' | ' | ' | ' | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | 74 | 76 | 85 | 83 | 93 | 91 | ||||||
Provision | 12 | 10 | 9 | 9 | 11 | 12 | ||||||
Charge-offs | -12 | -14 | -15 | -11 | -15 | -12 | ||||||
Recoveries and other | 2 | 2 | [1] | -3 | [1] | 3 | -6 | [1] | 2 | [1] | ||
Sale of finance receivables | 0 | ' | ' | 0 | ' | ' | ||||||
Ending Balance | 76 | 74 | 76 | 84 | 83 | 93 | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 2,279 | [2] | ' | ' | 2,466 | [2] | ' | ' | ||||
Other | ' | ' | ' | ' | ' | ' | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | 5 | [3] | 4 | [3] | 4 | [3] | 3 | [3] | 3 | [3] | 2 | [3] |
Provision | 1 | 2 | [3] | 0 | [3] | 0 | 1 | [3] | 0 | [3] | ||
Charge-offs | 0 | -1 | [3] | 0 | [3] | 0 | 0 | [3] | 0 | [3] | ||
Recoveries and other | -1 | 0 | [1],[3] | 0 | [1],[3] | 0 | -1 | [1],[3] | 1 | [1],[3] | ||
Sale of finance receivables | 0 | ' | ' | 0 | ' | ' | ||||||
Ending Balance | 5 | 5 | [3] | 4 | [3] | 3 | 3 | [3] | 3 | [3] | ||
Financing Receivable, Collectively Evaluated for Impairment | $270 | [2],[3] | ' | ' | $168 | [2],[3] | ' | ' | ||||
[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 residual values of $1 and $3, and the allowance for credit losses of $154 and $177 at September 30, 2013 and 2012, respectively. | |||||||||||
[3] | Includes developing market countries and smaller units. |
Finance_Receivables_Net_Credit
Finance Receivables, Net, Credit Quality Indicators (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loss Rates Of Customers With Investment Grade Credit Quality | 1.00% | ' | ||
Loss Rates Of Customers With Non Investment Grade Credit Quality Low Range | 2.00% | ' | ||
Loss Rates Of Customers With Non Investment Grade Credit Quality High Range | 4.00% | ' | ||
Loss Rates Of Customers With Substandard Doubtful Credit Quality | 10.00% | ' | ||
Financing Receivable, Net | $4,832 | $5,481 | ||
United States | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 1,587 | 2,012 | ||
United States | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 292 | 458 | ||
United States | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 678 | 769 | ||
United States | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 276 | 319 | ||
United States | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 128 | 163 | ||
United States | Healthcare | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 110 | 160 | ||
United States | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 103 | 143 | ||
Canada | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 696 | 801 | ||
Canada | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 261 | 307 | ||
Canada | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 111 | 129 | ||
Canada | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 89 | 101 | ||
Canada | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 118 | 135 | ||
Canada | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 117 | 129 | ||
Europe | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 2,279 | 2,474 | ||
France | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 684 | 702 | ||
U.K./Ireland | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 396 | 420 | ||
Central | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 737 | [1] | 816 | [1] |
Southern | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 370 | [2] | 442 | [2] |
Nordics | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 92 | [3] | 94 | [3] |
Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 270 | 194 | ||
Investment Grade | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 2,706 | 2,974 | ||
Investment Grade | United States | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 1,189 | 1,388 | ||
Investment Grade | United States | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 182 | 252 | ||
Investment Grade | United States | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 666 | 750 | ||
Investment Grade | United States | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 118 | 92 | ||
Investment Grade | United States | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 93 | 115 | ||
Investment Grade | United States | Healthcare | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 77 | 109 | ||
Investment Grade | United States | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 53 | 70 | ||
Investment Grade | Canada | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 389 | 446 | ||
Investment Grade | Canada | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 128 | 151 | ||
Investment Grade | Canada | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 99 | 117 | ||
Investment Grade | Canada | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 34 | 37 | ||
Investment Grade | Canada | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 61 | 66 | ||
Investment Grade | Canada | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 67 | 75 | ||
Investment Grade | Europe | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 913 | 992 | ||
Investment Grade | France | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 268 | 274 | ||
Investment Grade | U.K./Ireland | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 194 | 215 | ||
Investment Grade | Central | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 285 | [1] | 315 | [1] |
Investment Grade | Southern | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 120 | [2] | 139 | [2] |
Investment Grade | Nordics | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 46 | [3] | 49 | [3] |
Investment Grade | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 215 | 148 | ||
Non-investment Grade | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 1,570 | 1,801 | ||
Non-investment Grade | United States | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 198 | 359 | ||
Non-investment Grade | United States | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 75 | 147 | ||
Non-investment Grade | United States | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 7 | 15 | ||
Non-investment Grade | United States | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 58 | 90 | ||
Non-investment Grade | United States | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 20 | 31 | ||
Non-investment Grade | United States | Healthcare | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 17 | 37 | ||
Non-investment Grade | United States | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 21 | 39 | ||
Non-investment Grade | Canada | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 222 | 243 | ||
Non-investment Grade | Canada | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 102 | 116 | ||
Non-investment Grade | Canada | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 10 | 10 | ||
Non-investment Grade | Canada | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 32 | 34 | ||
Non-investment Grade | Canada | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 39 | 40 | ||
Non-investment Grade | Canada | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 39 | 43 | ||
Non-investment Grade | Europe | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 1,099 | 1,160 | ||
Non-investment Grade | France | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 299 | 294 | ||
Non-investment Grade | U.K./Ireland | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 159 | 155 | ||
Non-investment Grade | Central | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 407 | [1] | 445 | [1] |
Non-investment Grade | Southern | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 191 | [2] | 230 | [2] |
Non-investment Grade | Nordics | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 43 | [3] | 36 | [3] |
Non-investment Grade | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 51 | 39 | ||
Substandard | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 556 | 706 | ||
Substandard | United States | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 200 | 265 | ||
Substandard | United States | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 35 | 59 | ||
Substandard | United States | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 5 | 4 | ||
Substandard | United States | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 100 | 137 | ||
Substandard | United States | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 15 | 17 | ||
Substandard | United States | Healthcare | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 16 | 14 | ||
Substandard | United States | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 29 | 34 | ||
Substandard | Canada | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 85 | 112 | ||
Substandard | Canada | Finance and other services | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 31 | 40 | ||
Substandard | Canada | Government and education | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 2 | 2 | ||
Substandard | Canada | Graphic arts | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 23 | 30 | ||
Substandard | Canada | Industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 18 | 29 | ||
Substandard | Canada | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 11 | 11 | ||
Substandard | Europe | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 267 | 322 | ||
Substandard | France | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 117 | 134 | ||
Substandard | U.K./Ireland | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 43 | 50 | ||
Substandard | Central | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 45 | [1] | 56 | [1] |
Substandard | Southern | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 59 | [2] | 73 | [2] |
Substandard | Nordics | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | 3 | [3] | 9 | [3] |
Substandard | Other | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Financing Receivable, Net | $4 | $7 | ||
[1] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[2] | Italy, Greece, Spain and Portugal. | |||
[3] | Sweden, Norway, Denmark and Finland. |
Finance_Receivables_Net_Aging_
Finance Receivables, Net, Aging (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Billed portion of finance receivables, net | $2,705 | $2,639 | ||
Total Finance Receivables | 4,832 | 5,481 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 228 | 249 | ||
Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 91 | 95 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 27 | 33 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 29 | 32 | ||
Billed portion of finance receivables, net | 147 | 160 | ||
Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 4,685 | 5,321 | ||
United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 1,587 | 2,012 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 69 | 93 | ||
United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 54 | 65 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 11 | 14 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 7 | 9 | ||
Billed portion of finance receivables, net | 72 | 88 | ||
United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 1,515 | 1,924 | ||
Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 696 | 801 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 31 | 30 | ||
Canada | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 2 | 2 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 3 | 3 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 3 | 2 | ||
Billed portion of finance receivables, net | 8 | 7 | ||
Canada | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 688 | 794 | ||
Europe | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 2,279 | 2,474 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 128 | 126 | ||
Europe | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 29 | 26 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 12 | 15 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 19 | 21 | ||
Billed portion of finance receivables, net | 60 | 62 | ||
Europe | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 2,219 | 2,412 | ||
France | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 684 | 702 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 34 | 22 | ||
France | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 1 | 0 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 0 | 5 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 1 | ||
Billed portion of finance receivables, net | 1 | 6 | ||
France | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 683 | 696 | ||
U.K./Ireland | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 396 | 420 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 4 | 2 | ||
U.K./Ireland | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 2 | 2 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 2 | 0 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 2 | 2 | ||
Billed portion of finance receivables, net | 6 | 4 | ||
U.K./Ireland | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 390 | 416 | ||
Central | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 737 | [1] | 816 | [1] |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 25 | [1] | 30 | [1] |
Central | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 5 | [1] | 3 | [1] |
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 2 | [1] | 2 | [1] |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 4 | [1] | 4 | [1] |
Billed portion of finance receivables, net | 11 | [1] | 9 | [1] |
Central | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 726 | [1] | 807 | [1] |
Southern | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 370 | [2] | 442 | [2] |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 65 | [2] | 72 | [2] |
Southern | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 19 | [2] | 20 | [2] |
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 8 | [2] | 8 | [2] |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 13 | [2] | 14 | [2] |
Billed portion of finance receivables, net | 40 | [2] | 42 | [2] |
Southern | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 330 | [2] | 400 | [2] |
Nordics | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 92 | [3] | 94 | [3] |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | [3] | 0 | [3] |
Nordics | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 2 | [3] | 1 | [3] |
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 0 | [3] | 0 | [3] |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | [3] | 0 | [3] |
Billed portion of finance receivables, net | 2 | [3] | 1 | [3] |
Nordics | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 90 | [3] | 93 | [3] |
Other | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 270 | 194 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | ||
Other | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 6 | 2 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 1 | 1 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 | ||
Billed portion of finance receivables, net | 7 | 3 | ||
Other | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 263 | 191 | ||
Finance and other services | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 292 | 458 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 16 | 18 | ||
Finance and other services | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 9 | 12 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 2 | 3 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 1 | 2 | ||
Billed portion of finance receivables, net | 12 | 17 | ||
Finance and other services | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 280 | 441 | ||
Finance and other services | Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 261 | 307 | ||
Government and education | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 678 | 769 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 27 | 42 | ||
Government and education | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 21 | 21 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 4 | 5 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 3 | 3 | ||
Billed portion of finance receivables, net | 28 | 29 | ||
Government and education | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 650 | 740 | ||
Government and education | Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 111 | 129 | ||
Graphic arts | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 276 | 319 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 10 | 12 | ||
Graphic arts | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 14 | 16 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 2 | 1 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 1 | 1 | ||
Billed portion of finance receivables, net | 17 | 18 | ||
Graphic arts | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 259 | 301 | ||
Graphic arts | Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 89 | 101 | ||
Industrial | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 128 | 163 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 6 | 6 | ||
Industrial | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 4 | 5 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 1 | 2 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 1 | 1 | ||
Billed portion of finance receivables, net | 6 | 8 | ||
Industrial | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 122 | 155 | ||
Industrial | Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 118 | 135 | ||
Healthcare | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 110 | 160 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 5 | 9 | ||
Healthcare | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 3 | 6 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 1 | 2 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 1 | 1 | ||
Billed portion of finance receivables, net | 5 | 9 | ||
Healthcare | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 105 | 151 | ||
Other | United States | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | 103 | 143 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 5 | 6 | ||
Other | United States | Billed Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Current | 3 | 5 | ||
Financing Receivable Recorded Investment 31 To 90 Days Past Due | 1 | 1 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 1 | ||
Billed portion of finance receivables, net | 4 | 7 | ||
Other | United States | Unbilled Revenues [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Unbilled | 99 | 136 | ||
Other | Canada | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Total Finance Receivables | $117 | $129 | ||
[1] | Switzerland, Germany, Austria, Belgium and Holland. | |||
[2] | Italy, Greece, Spain and Portugal. | |||
[3] | Sweden, Norway, Denmark and Finland. |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories, net [Abstract] | ' | ' |
Finished goods | $961 | $844 |
Work-in-process | 76 | 61 |
Raw materials | 115 | 106 |
Total Inventories | $1,152 | $1,011 |
Investment_in_Affiliates_at_Eq2
Investment in Affiliates, at Equity (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
USD ($) | USD ($) | USD ($) | USD ($) | Fuji Xerox | Fuji Xerox | Fuji Xerox | Fuji Xerox | Fuji Xerox | Fuji Xerox | Fuji Xerox | Fuji Xerox | Other investments | Other investments | Other investments | Other investments | |||||
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total Equity in Net Income of Unconsolidated Affiliates | $43 | $34 | $126 | $105 | $40 | ' | $32 | ' | $117 | ' | $97 | ' | $3 | $2 | $9 | $8 | ||||
Ownership percentage | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ||||
Summary of Operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | 2,909 | ' | 3,192 | ' | 8,653 | ' | 9,586 | ' | ' | ' | ' | ' | ||||
Costs and expenses | ' | ' | ' | ' | 2,670 | ' | 2,988 | ' | 7,960 | ' | 8,928 | ' | ' | ' | ' | ' | ||||
Income before income taxes | ' | ' | ' | ' | 239 | ' | 204 | ' | 693 | ' | 658 | ' | ' | ' | ' | ' | ||||
Income tax expense | ' | ' | ' | ' | 72 | ' | 68 | ' | 197 | ' | 246 | ' | ' | ' | ' | ' | ||||
Net Income | ' | ' | ' | ' | 167 | ' | 136 | ' | 496 | ' | 412 | ' | ' | ' | ' | ' | ||||
Less: Net income – noncontrolling interests | ' | ' | ' | ' | 1 | ' | 2 | ' | 4 | ' | 4 | ' | ' | ' | ' | ' | ||||
Net Income – Fuji Xerox | ' | ' | ' | ' | $166 | ' | $134 | ' | $492 | ' | $408 | ' | ' | ' | ' | ' | ||||
Weighted Average Exchange Rate (in Yen/USD) | ' | ' | ' | ' | ' | 98.89 | [1] | ' | 78.61 | [1] | ' | 96.61 | [1] | ' | 79.47 | [1] | ' | ' | ' | ' |
[1] | Represents Yen/U.S. Dollar exchange rate used to translate. |
Restructuring_Programs_Details
Restructuring Programs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | ' | 3,300 | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Balance at beginning of period | ' | ' | $130 | ' | ||
Provision | ' | ' | 78 | ' | ||
Reversals | ' | ' | -18 | ' | ||
Net current period restructuring charges, continuing operations | 35 | 14 | 60 | [1] | 63 | |
Discontinued operations | ' | ' | 4 | [2] | ' | |
Total Net Current Period Charges | ' | ' | 64 | ' | ||
Charges against reserve and currency | -34 | -29 | -107 | -114 | ||
Balance at end of period | 87 | ' | 87 | ' | ||
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract] | ' | ' | ' | ' | ||
Asset impairment | 0 | 0 | 0 | 2 | ||
Effects of foreign currency and other non-cash items | 0 | -1 | 0 | -1 | ||
Restructuring Cash Payments | -34 | -30 | -107 | -113 | ||
Services [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Net current period restructuring charges, continuing operations | 10 | 6 | 18 | 25 | ||
Document Technology [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Net current period restructuring charges, continuing operations | 25 | 8 | 42 | 37 | ||
Other [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Net current period restructuring charges, continuing operations | 0 | 0 | 0 | 1 | ||
Severance and Related Costs [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Balance at beginning of period | ' | ' | 123 | ' | ||
Provision | ' | ' | 78 | ' | ||
Reversals | ' | ' | -18 | ' | ||
Net current period restructuring charges, continuing operations | ' | ' | 60 | [1] | ' | |
Discontinued operations | ' | ' | 4 | [2] | ' | |
Total Net Current Period Charges | ' | ' | 64 | ' | ||
Charges against reserve and currency | ' | ' | -105 | ' | ||
Balance at end of period | 82 | ' | 82 | ' | ||
Lease Cancellation and Other Costs [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Balance at beginning of period | ' | ' | 7 | ' | ||
Provision | ' | ' | 0 | ' | ||
Reversals | ' | ' | 0 | ' | ||
Net current period restructuring charges, continuing operations | ' | ' | 0 | [1] | ' | |
Discontinued operations | ' | ' | 0 | [2] | ' | |
Total Net Current Period Charges | ' | ' | 0 | ' | ||
Charges against reserve and currency | ' | ' | -2 | ' | ||
Balance at end of period | 5 | ' | 5 | ' | ||
Asset Impairments [Member] | ' | ' | ' | ' | ||
Restructuring reserve [Roll Forward] | ' | ' | ' | ' | ||
Balance at beginning of period | ' | ' | 0 | [3] | ' | |
Provision | ' | ' | 0 | [3] | ' | |
Reversals | ' | ' | 0 | [3] | ' | |
Net current period restructuring charges, continuing operations | ' | ' | 0 | [3] | ' | |
Discontinued operations | ' | ' | 0 | [2] | ' | |
Total Net Current Period Charges | ' | ' | 0 | ' | ||
Charges against reserve and currency | ' | ' | 0 | [3] | ' | |
Balance at end of period | $0 | [3] | ' | $0 | [3] | ' |
[1] | (1)Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown. | |||||
[2] | (3)Refer to Note 5 - Divestitures for additional information regarding discontinued operations. | |||||
[3] | (2)Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. |
Debt_Interest_Income_and_Expen
Debt Interest Income and Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Debt Disclosure [Abstract] | ' | ' | ' | ' | ||||
Interest expense | $100 | [1] | $105 | [1] | $308 | [1] | $325 | [1] |
Interest income | $136 | [2] | $163 | [2] | $373 | [2] | $461 | [2] |
[1] | Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. | |||||||
[2] | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
Debt_Net_Payments_and_Proceeds
Debt Net Payments and Proceeds on Other Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Net proceeds on short-term debt | ' | ' | $6 | $742 | ||
Proceeds from issuance of long-term debt | ' | ' | 102 | [1] | 1,112 | [1] |
Payments on long-term debt | ' | ' | -1,039 | -1,112 | ||
Net (Payments) Proceeds on Debt | -610 | 199 | -931 | 742 | ||
United States | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Proceeds from issuance of long-term debt | ' | ' | $39 | ' | ||
[1] | Includes net proceeds of $39 from the sale and capital leaseback of a building in the U.S. |
Financial_Instruments_Foreign_
Financial Instruments, Foreign Exchange Risk Management (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Foreign Exchange Contracts [Line Items] | ' | ' | |
Average Maturity of Foreign Exchange Hedging Contracts - within Three Months | 81.00% | ' | |
Average Maturity of Foreign Exchange Hedging Contracts - within Three and Six Months | 10.00% | ' | |
Average Maturity of Foreign Exchange Hedging Contracts - within Six and Twelve Months | 9.00% | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | $2,826 | ' | |
Fair Value Asset (Liability) | -36 | [1] | ' |
Foreign Currency Cash Flow Hedges [Abstract] | ' | ' | |
Net liability fair value | -33 | -48 | |
Japanese Yen/U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 574 | ' | |
Fair Value Asset (Liability) | -10 | [1] | ' |
U S Dollar Euro [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 513 | ' | |
Fair Value Asset (Liability) | -9 | [1] | ' |
Euro/U.K. Pound Sterling [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 383 | ' | |
Fair Value Asset (Liability) | -2 | [1] | ' |
Japanese Yen Euro [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 367 | ' | |
Fair Value Asset (Liability) | -16 | [1] | ' |
U K Pound Sterling / U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 242 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
U.K. Pound Sterling/Euro [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 146 | ' | |
Fair Value Asset (Liability) | 2 | [1] | ' |
Canadian Dollar / Euro [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 97 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
Euro /U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 92 | ' | |
Fair Value Asset (Liability) | 1 | [1] | ' |
Mexican Peso /U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 67 | ' | |
Fair Value Asset (Liability) | -1 | [1] | ' |
Indian Rupee / U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 54 | ' | |
Fair Value Asset (Liability) | -1 | [1] | ' |
Philippine Peso / U.S. Dollar [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 47 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
U.S. Dollar / Japanese Yen [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 38 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
Euro / Danish Krone [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 28 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
U.S Dollar / Peruvian Nuevo Sol [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 26 | ' | |
Fair Value Asset (Liability) | 0 | [1] | ' |
All Other [Member] | ' | ' | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ' | ' | |
Gross Notional Value | 152 | ' | |
Fair Value Asset (Liability) | $0 | [1] | ' |
[1] | (1)Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at September 30, 2013. |
Financial_Instruments_Summary_
Financial Instruments, Summary of Derivative Instruments Fair Value (Details) (Foreign exchange contracts - forwards [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Net Derivative Asset (Liability) | ($36) | ($71) |
Other current assets [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Assets | 11 | 11 |
Other current liabilities [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Liabilities | -47 | -82 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Net Derivative Asset (Liability) | -33 | -48 |
Derivatives Designated as Hedging Instruments [Member] | Other current assets [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Assets | 4 | 3 |
Derivatives Designated as Hedging Instruments [Member] | Other current liabilities [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Liabilities | -37 | -51 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Net Derivative Asset (Liability) | -3 | -23 |
Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Assets | 7 | 8 |
Not Designated as Hedging Instrument [Member] | Other current liabilities [Member] | ' | ' |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ' | ' |
Total Derivative Liabilities | ($10) | ($31) |
Financial_Instruments_Summary_1
Financial Instruments, Summary of Derivative Instruments Gain (Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ' | ' | ' | ' |
Net losses recorded in AOCL expected to be reclassified to net income in the future | ' | ' | ($33) | ' |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | -1 | -7 | -1 |
Foreign exchange contracts - forwards [Member] | Foreign Currency Gain (Loss) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -12 | -6 | -45 | -1 |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | ' | ' | ' | ' |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ' | ' | ' | ' |
Derivative Gain (Loss) Recognized in OCI | -13 | 8 | -81 | 16 |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | Cost of Sales [Member] | ' | ' | ' | ' |
Summary of Derivative Instruments Gains (Losses) [Abstract] | ' | ' | ' | ' |
Gain (Loss) Reclassified from AOCI to Income | ($35) | $8 | ($89) | $29 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities, Recurring (Details) (Fair Value, Measurements, Recurring [Member], Significant Other Observable Inputs (Level 2) [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Foreign exchange contracts-forwards | $11 | $11 |
Deferred compensation investments in cash surrender life insurance | 85 | 77 |
Deferred compensation investments in mutual funds | 27 | 23 |
Total | 123 | 111 |
Liabilities: | ' | ' |
Foreign exchange contracts-forwards | 47 | 82 |
Deferred compensation plan liabilities | 120 | 110 |
Total | $167 | $192 |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities, Nonrecurring (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | $948 | $1,246 |
Accounts receivable, net | 2,989 | 2,866 |
Short-term debt | 1,135 | 1,042 |
Long-term debt | 6,406 | 7,447 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 948 | 1,246 |
Accounts receivable, net | 2,989 | 2,866 |
Short-term debt | 1,137 | 1,051 |
Long-term debt | $6,857 | $8,040 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | ' | ' | ' | ' | ||||
Net actuarial gain | $0 | $31 | $25 | $50 | ||||
Amortization of prior service credit | -12 | [1] | -16 | [1] | -34 | [1] | -48 | [1] |
Amortization of net actuarial loss | 42 | [1] | 51 | [1] | 174 | 135 | ||
Pension Benefits | ' | ' | ' | ' | ||||
Contributions [Abstract] | ' | ' | ' | ' | ||||
Defined Benefit Plan, Contributions by Employer | ' | ' | 162 | ' | ||||
Anticipated additional contributions to the defined benefit and post retirement plans in current fiscal year | ' | ' | 33 | ' | ||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 195 | ' | 195 | ' | ||||
Retiree Health | ' | ' | ' | ' | ||||
Components of Net Periodic Benefit Costs: | ' | ' | ' | ' | ||||
Service cost | 2 | 3 | 7 | 7 | ||||
Interest cost | 8 | 9 | 25 | 31 | ||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||
Recognized net actuarial loss | 0 | 0 | 1 | 1 | ||||
Amortization of prior service credit | -10 | -10 | -32 | -31 | ||||
Recognized curtailment gain | ' | ' | 0 | 0 | ||||
Recognized settlement loss | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plans | 0 | 2 | 1 | 8 | ||||
Defined contribution plans | 0 | 0 | 0 | 0 | ||||
Net Periodic Benefit Cost | 0 | 2 | 1 | 8 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | ' | ' | ' | ' | ||||
Net actuarial gain | 0 | -31 | -36 | -31 | ||||
Amortization of prior service credit | 10 | 10 | 32 | 31 | ||||
Amortization of net actuarial loss | 0 | 0 | -1 | -1 | ||||
Total Recognized in Other Comprehensive Income | 10 | [2] | -21 | [2] | -5 | [2] | -1 | [2] |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 10 | -19 | -4 | 7 | ||||
Contributions [Abstract] | ' | ' | ' | ' | ||||
Defined Benefit Plan, Contributions by Employer | ' | ' | 52 | ' | ||||
Anticipated additional contributions to the defined benefit and post retirement plans in current fiscal year | ' | ' | 28 | ' | ||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 80 | ' | 80 | ' | ||||
U.S. Plans | Pension Benefits | ' | ' | ' | ' | ||||
Components of Net Periodic Benefit Costs: | ' | ' | ' | ' | ||||
Service cost | 2 | 28 | 7 | 84 | ||||
Interest cost | 37 | 47 | 109 | 139 | ||||
Expected return on plan assets | -41 | -53 | -130 | -157 | ||||
Recognized net actuarial loss | 2 | 12 | 16 | 39 | ||||
Amortization of prior service credit | -1 | -6 | -1 | -17 | ||||
Recognized curtailment gain | ' | ' | 0 | 0 | ||||
Recognized settlement loss | 20 | 25 | 99 | 55 | ||||
Defined Benefit Plans | 19 | 53 | 100 | 143 | ||||
Defined contribution plans | 15 | 7 | 53 | 22 | ||||
Net Periodic Benefit Cost | 34 | 60 | 153 | 165 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | ' | ' | ' | ' | ||||
Net actuarial gain | 0 | 0 | 11 | -19 | ||||
Amortization of prior service credit | 1 | 6 | 1 | 17 | ||||
Amortization of net actuarial loss | -22 | -37 | -115 | -94 | ||||
Total Recognized in Other Comprehensive Income | -21 | [2] | -31 | [2] | -103 | [2] | -96 | |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 13 | 29 | 50 | 69 | ||||
Contributions [Abstract] | ' | ' | ' | ' | ||||
Defined Benefit Plan, Contributions by Employer | ' | ' | 20 | ' | ||||
Anticipated additional contributions to the defined benefit and post retirement plans in current fiscal year | ' | ' | 6 | ' | ||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | 26 | ' | 26 | ' | ||||
Non-U.S. Plans | Pension Benefits | ' | ' | ' | ' | ||||
Components of Net Periodic Benefit Costs: | ' | ' | ' | ' | ||||
Service cost | 24 | 21 | 69 | 62 | ||||
Interest cost | 64 | 66 | 193 | 202 | ||||
Expected return on plan assets | -78 | -76 | -235 | -229 | ||||
Recognized net actuarial loss | 20 | 14 | 58 | 40 | ||||
Amortization of prior service credit | -1 | 0 | -1 | 0 | ||||
Recognized curtailment gain | ' | ' | -6 | 0 | ||||
Recognized settlement loss | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plans | 29 | 25 | 78 | 75 | ||||
Defined contribution plans | 7 | 10 | 20 | 26 | ||||
Net Periodic Benefit Cost | 36 | 35 | 98 | 101 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | ' | ' | ' | ' | ||||
Net actuarial gain | 0 | 0 | 0 | 0 | ||||
Amortization of prior service credit | 1 | 0 | 1 | 0 | ||||
Amortization of net actuarial loss | -20 | -14 | -58 | -40 | ||||
Total Recognized in Other Comprehensive Income | -19 | -14 | -57 | -40 | ||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 17 | 21 | 41 | 61 | ||||
Contributions [Abstract] | ' | ' | ' | ' | ||||
Defined Benefit Plan, Contributions by Employer | ' | ' | 142 | ' | ||||
Anticipated additional contributions to the defined benefit and post retirement plans in current fiscal year | ' | ' | 27 | ' | ||||
Anticipated total cash contributions to defined benefit and post retirement plans in the current year | $169 | ' | $169 | ' | ||||
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information. | |||||||
[2] | (1)Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 16 - Other Comprehensive Income for related tax effects and the after-tax amounts. |
Shareholders_Equity_Details_1
Shareholders Equity (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | $11,521,000,000 | ' | ' | ' | ' | $11,521,000,000 | ' | ||||||
Noncontrolling interests, Beginning Balance | ' | ' | 143,000,000 | ' | ' | ' | ' | 143,000,000 | ' | ||||||
Total Equity, Beginning Balance | ' | ' | 11,664,000,000 | 12,366,000,000 | ' | ' | 12,025,000,000 | 11,664,000,000 | 12,025,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | 531,000,000 | ' | ' | ' | 614,000,000 | ' | ' | 803,000,000 | 1,030,000,000 | ||||||
Comprehensive income, net, attributable to noncontrolling interest | 5,000,000 | ' | ' | ' | 6,000,000 | ' | ' | 15,000,000 | 20,000,000 | ||||||
Comprehensive income, net, including portion attributable to noncontrolling interest | 536,000,000 | ' | ' | ' | 620,000,000 | ' | ' | 818,000,000 | 1,050,000,000 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | -218,000,000 | [1] | -172,000,000 | [1] | ||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | -18,000,000 | [2] | -18,000,000 | [2] | ||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | 98,000,000 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | -172,000,000 | -718,000,000 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | -24,000,000 | -29,000,000 | ||||||
Ending Balance | 12,046,000,000 | ' | ' | 11,521,000,000 | ' | ' | ' | 12,046,000,000 | ' | ||||||
Noncontrolling interests, Ending Balance | 134,000,000 | ' | ' | 143,000,000 | ' | ' | ' | 134,000,000 | ' | ||||||
Total Equity, Ending Balance | 12,180,000,000 | ' | ' | 11,664,000,000 | 12,366,000,000 | ' | ' | 12,180,000,000 | 12,366,000,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 | $0.17 | $0.13 | ||||||
Preferred Stock, Dividends Per Share, Declared | $20 | $20 | $20 | $20 | $20 | $20 | $20 | ' | ' | ||||||
Xerox Shareholders’ Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | 11,521,000,000 | ' | ' | ' | 11,876,000,000 | 11,521,000,000 | 11,876,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | 803,000,000 | 1,030,000,000 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | -218,000,000 | [1] | -172,000,000 | [1] | ||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | -18,000,000 | [2] | -18,000,000 | [2] | ||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | 98,000,000 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | -172,000,000 | -718,000,000 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Ending Balance | 12,046,000,000 | ' | ' | ' | 12,226,000,000 | ' | ' | 12,046,000,000 | 12,226,000,000 | ||||||
Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | 1,239,000,000 | ' | ' | ' | 1,353,000,000 | 1,239,000,000 | 1,353,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | |||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | |||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | 17,000,000 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | -16,000,000 | -63,000,000 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Ending Balance | 1,247,000,000 | ' | ' | ' | 1,322,000,000 | ' | ' | 1,247,000,000 | 1,322,000,000 | ||||||
Additional Paid-in Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | 5,622,000,000 | ' | ' | ' | 6,317,000,000 | 5,622,000,000 | 6,317,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | |||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | |||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 115,000,000 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 106,000,000 | 81,000,000 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | -98,000,000 | -418,000,000 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Ending Balance | 5,630,000,000 | ' | ' | ' | 6,095,000,000 | ' | ' | 5,630,000,000 | 6,095,000,000 | ||||||
Treasury Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | -104,000,000 | ' | ' | ' | -124,000,000 | -104,000,000 | -124,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | |||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | |||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | -172,000,000 | [3] | -718,000,000 | |||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 114,000,000 | 481,000,000 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Ending Balance | -162,000,000 | ' | ' | ' | -361,000,000 | ' | ' | -162,000,000 | -361,000,000 | ||||||
Retained Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | 7,991,000,000 | ' | ' | ' | 7,046,000,000 | 7,991,000,000 | 7,046,000,000 | ||||||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | 853,000,000 | 860,000,000 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | -218,000,000 | [1] | -172,000,000 | [1] | ||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | -18,000,000 | [2] | -18,000,000 | [2] | ||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Ending Balance | 8,608,000,000 | ' | ' | ' | 7,716,000,000 | ' | ' | 8,608,000,000 | 7,716,000,000 | ||||||
AOCL | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Beginning Balance | ' | ' | -3,227,000,000 | [4] | ' | ' | ' | -2,716,000,000 | [4] | -3,227,000,000 | [4] | -2,716,000,000 | [4] | ||
Comprehensive income (loss), net, attributable to parent | ' | ' | ' | ' | ' | ' | ' | -50,000,000 | [4] | 170,000,000 | [4] | ||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | 0 | [1],[4] | 0 | |||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | 0 | [2],[4] | 0 | |||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | 0 | [4] | 0 | [4] | ||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 0 | [4] | 0 | [4] | ||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 0 | [4] | 0 | |||||
Ending Balance | -3,277,000,000 | [4] | ' | ' | ' | -2,546,000,000 | [4] | ' | ' | -3,277,000,000 | [4] | -2,546,000,000 | [4] | ||
Non- controlling Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Noncontrolling interests, Beginning Balance | ' | ' | 143,000,000 | ' | ' | ' | 149,000,000 | 143,000,000 | 149,000,000 | ||||||
Comprehensive income, net, attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 20,000,000 | ||||||
Cash dividends declared -common stock | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | |||||
Cash dividends declared preferred stock | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | |||||
Contribution of common stock to U.S. pension plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||||||
Stock option and incentive plans, net | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Payments to acquire treasury stock, including fees | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Cancellation of treasury stock | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | -24,000,000 | -29,000,000 | ||||||
Noncontrolling interests, Ending Balance | $134,000,000 | ' | ' | ' | $140,000,000 | ' | ' | $134,000,000 | $140,000,000 | ||||||
[1] | (2)Cash dividends declared on common stock of $0.0575 per share in all quarters of 2013 and $0.0425 per share in all quarters of 2012. | ||||||||||||||
[2] | (3)Cash dividends declared on preferred stock of $20.00 per share in all quarters of 2013 and 2012. | ||||||||||||||
[3] | (1)Includes associated fees. | ||||||||||||||
[4] | (1)Refer to Note 16 - Other Comprehensive Income for components of AOCL. |
Shareholders_Equity_Details_2
Shareholders Equity (Details 2) (USD $) | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Treasury Stock [Roll Forward] | ' | ' | |
Treasury Stock, Shares, Beginning (shares) | 14,924 | ' | |
Treasury Stock, Shares, Ending (shares) | 16,012 | ' | |
Treasury Stock, Value, Beginning | $104 | ' | |
Purchases | 172 | 718 | |
Cancellation of treasury stock | 0 | 0 | |
Treasury Stock, Value, Ending | 162 | ' | |
Treasury Stock | ' | ' | |
Treasury Stock [Roll Forward] | ' | ' | |
Treasury Stock, Shares, Beginning (shares) | 14,924 | ' | |
Purchases (in shares) | 17,372 | [1] | ' |
Cancellations (in shares) | -16,284 | ' | |
Treasury Stock, Shares, Ending (shares) | 16,012 | ' | |
Treasury Stock, Value, Beginning | 104 | ' | |
Purchases | 172 | [1] | 718 |
Cancellation of treasury stock | -114 | -481 | |
Treasury Stock, Value, Ending | $162 | ' | |
[1] | (1)Includes associated fees. |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | |||||
Translation Adjustments Losses, Pre-tax | $266 | $343 | ($185) | $176 | ' | |||||
Translation Adjustments Losses, Net of Tax | 269 | [1] | 344 | [1] | -178 | [1] | 181 | [1] | ' | |
Changes in fair value of cash flow hedges - (losses) gains, pre-tax | -13 | 8 | -81 | 16 | ' | |||||
Changes in fair value of cash flow hedges - (losses) gains, net of tax | -11 | 4 | -57 | 11 | ' | |||||
Changes in cash flow hedges reclassed to earnings, pre-tax | 35 | [2] | -8 | [2] | 89 | [2] | -29 | [2] | ' | |
Changes in cash flow hedges reclassed to earnings, net of tax | 24 | [2] | -6 | [2] | 62 | [2] | -22 | [2] | ' | |
Other gains, pre-tax | 1 | 0 | 2 | 0 | ' | |||||
Other gains, net of tax | 1 | 0 | 2 | 0 | ' | |||||
Net Unrealized Gains (Losses), Pre-tax | 23 | 0 | 10 | -13 | ' | |||||
Net Unrealized Gains (Losses), Net of Tax | 14 | [1] | -2 | [1] | 7 | [1] | -11 | [1] | ' | |
Net actuarial gains, pre-tax | 0 | 31 | 25 | 50 | ' | |||||
Net actuarial gains, net of tax | 0 | 19 | 15 | 31 | ' | |||||
Prior service amortization, pre-tax | -12 | [3] | -16 | [3] | -34 | [3] | -48 | [3] | ' | |
Prior service amortization, net of tax | -7 | [3] | -10 | [3] | -21 | [3] | -30 | [3] | ' | |
Actuarial loss amortization, pre-tax | 42 | [3] | 51 | [3] | 174 | 135 | ' | |||
Actuarial loss amortization, net of tax | 29 | [3] | 33 | [3] | 116 | 88 | ' | |||
Fuji Xerox changes in defined benefit plans, net, pre-tax | 11 | [4] | 7 | [4] | 7 | [4] | -34 | [4] | ' | |
Fuji Xerox changes in defined benefit plans, net, net of tax | 11 | [4] | 7 | [4] | 7 | [4] | -34 | [4] | ' | |
Other (losses) gains, pre-tax | -71 | [5] | -59 | [5] | 4 | [5] | -55 | [5] | ' | |
Other (losses) gains, net of tax | -71 | [5] | -59 | [5] | 4 | [5] | -55 | [5] | ' | |
Change in Defined Benefit Plans (Losses) Gains, Pre-tax | -30 | 14 | 176 | 48 | ' | |||||
Change in Defined Benefit Plans (Losses) Gains, Net of Tax | -38 | [1] | -10 | [1] | 121 | [1] | 0 | [1] | ' | |
Other Comprehensive Income (Loss) Attributable to Xerox, Pre-tax | 259 | 357 | 1 | 211 | ' | |||||
Other Comprehensive Income (Loss), Net Attributable to Xerox | 245 | [1] | 332 | [1] | -50 | [1] | 170 | [1] | ' | |
Cumulative translation adjustments | -1,004 | ' | -1,004 | ' | -826 | |||||
Benefit plans net actuarial losses and prior service credits | -2,243 | [6] | ' | -2,243 | [6] | ' | -2,364 | [6] | ||
Other unrealized losses, net | -30 | ' | -30 | ' | -37 | |||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | ($3,277) | ' | ($3,277) | ' | ($3,227) | |||||
[1] | (1) Refer to Note 16 - Other Comprehensive Income for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. | |||||||||
[2] | Reclassified to Cost of sales - refer to Note 12 - Financial Instruments for additional information regarding our cash flow hedges. | |||||||||
[3] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information. | |||||||||
[4] | Represents our share of Fuji Xerox's benefit plan changes. | |||||||||
[5] | Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits included in AOCL. | |||||||||
[6] | (1)Includes our share of Fuji Xerox. |
Earnings_per_Share_Reconciliat
Earnings per Share, Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic Earnings per Share: | ' | ' | ' | ' |
Net income from continuing operations attributable to Xerox | $288 | $280 | $875 | $850 |
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 282 | 274 | 857 | 832 |
Net (loss) income from discontinued operations attributable to Xerox | -2 | 2 | -22 | 10 |
Adjusted Net Income Available to Common Shareholders | 280 | 276 | 835 | 842 |
Weighted-average common shares outstanding (in shares) | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 |
Continuing operations (dollars per share) | $0.23 | $0.21 | $0.70 | $0.63 |
Discontinued operations (dollars per share) | $0 | $0 | ($0.02) | $0.01 |
Total Basic Earnings per Share (dollars per share) | $0.23 | $0.21 | $0.68 | $0.64 |
Diluted Earnings per Share: | ' | ' | ' | ' |
Net income from continuing operations attributable to Xerox | 288 | 280 | 875 | 850 |
Interest on convertible securities, net | 0 | 0 | 1 | 1 |
Adjusted Net Income From Continuing Operations Available to Common Shareholders, Diluted | 288 | 274 | 876 | 833 |
Net (loss) income from discontinued operations attributable to Xerox | -2 | 2 | -22 | 10 |
Adjusted Net Income Available to Common Shareholders, Diluted | 286 | 276 | 854 | 843 |
Weighted-average common shares outstanding (in shares) | 1,236,485 | 1,293,513 | 1,230,787 | 1,320,422 |
Common shares issuable with respect to: | ' | ' | ' | ' |
Adjusted Weighted Average Common Shares Outstanding | 1,285,578 | 1,318,868 | 1,283,596 | 1,349,010 |
Continuing operations (dollars per share) | $0.22 | $0.21 | $0.68 | $0.62 |
Discontinued operations (dollars per share) | $0 | $0 | ($0.01) | $0 |
Diluted Earnings per Share (dollars per share) | $0.22 | $0.21 | $0.67 | $0.62 |
Stock options [Member] | ' | ' | ' | ' |
Common shares issuable with respect to: | ' | ' | ' | ' |
Stock options and Restricted stock and performance shares (in shares) | 5,225 | 3,335 | 5,422 | 5,369 |
Restricted Stock and Performance Shares [Member] | ' | ' | ' | ' |
Common shares issuable with respect to: | ' | ' | ' | ' |
Stock options and Restricted stock and performance shares (in shares) | 14,910 | 20,028 | 18,429 | 21,227 |
Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Common shares issuable with respect to: | ' | ' | ' | ' |
Convertible preferred stock (in shares) | 26,966 | 0 | 26,966 | 0 |
Convertible Debt Securities [Member] | ' | ' | ' | ' |
Common shares issuable with respect to: | ' | ' | ' | ' |
Convertible securities (in shares) | 1,992 | 1,992 | 1,992 | 1,992 |
Earnings (loss) per share, basic [Member] | ' | ' | ' | ' |
Basic Earnings per Share: | ' | ' | ' | ' |
Accrued dividends on preferred stock | -6 | -6 | -18 | -18 |
Earnings (loss) per share, diluted [Member] | ' | ' | ' | ' |
Basic Earnings per Share: | ' | ' | ' | ' |
Accrued dividends on preferred stock | $0 | ($6) | $0 | ($18) |
Earnings_per_Share_Anti_Diluti
Earnings per Share, Anti Dilutive Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total anti-dilutive securities (in shares) | 25,118 | ' | ' | ' | 89,723 | ' | ' | 21,402 | 86,489 |
Dividends per common share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 | $0.17 | $0.13 |
Stock options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total anti-dilutive securities (in shares) | 13,102 | ' | ' | ' | 38,430 | ' | ' | 12,905 | 36,395 |
Restricted Stock and Performance Shares [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total anti-dilutive securities (in shares) | 12,016 | ' | ' | ' | 24,327 | ' | ' | 8,497 | 23,128 |
Convertible preferred stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total anti-dilutive securities (in shares) | 0 | ' | ' | ' | 26,966 | ' | ' | 0 | 26,966 |
Contingencies_and_Litigation_D
Contingencies and Litigation (Details) (Brazil Tax And Labor Contingencies [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Brazil Tax And Labor Contingencies [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Unreserved tax and labor contingencies | $979 | $1,010 |
Escrow cash deposits | 179 | ' |
Net book value of assets with liens | 8 | ' |
Letters of credit | $238 | ' |
Contingencies_and_Litigation_G
Contingencies and Litigation Guarantor (Details) (USD $) | Sep. 30, 2013 |
Letter of Credit [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Maximum exposure, undiscounted | $451,000,000 |
Surety Bonds Performance Guarantee [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Maximum exposure, undiscounted | 759,000,000 |
Student FFEL Loans [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Outstanding Student Loan Portfolio, Loans | 3,300,000 |
Outstanding Principal Balance - Student Loan Portfolio | 47,200,000,000 |
Reserves for losses on defaulted loans | $3,000,000 |