Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Xerox Corporation | ||
Entity Central Index Key | 108,772 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 1,016,583,502 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 9,616,251,249 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues | ||||
Sales | $ 4,319 | $ 4,674 | $ 5,214 | |
Outsourcing, maintenance and rentals | 6,127 | 6,445 | 7,078 | |
Financing | [1] | 325 | 346 | 387 |
Total Revenues | [1] | 10,771 | 11,465 | 12,679 |
Costs and Expenses | ||||
Cost of sales | 2,657 | 2,922 | 3,227 | |
Cost of outsourcing, maintenance and rentals | 3,725 | 3,831 | 4,202 | |
Cost of financing | 128 | 130 | 140 | |
Research, development and engineering expenses | 476 | 511 | 531 | |
Selling, administrative and general expenses | 2,695 | 2,865 | 3,133 | |
Restructuring and related costs | 264 | 27 | 106 | |
Amortization of intangible assets | 58 | 60 | 65 | |
Other expenses, net | 200 | 195 | 185 | |
Total Costs and Expenses | 10,203 | 10,541 | 11,589 | |
Income Before Income Taxes and Equity Income | 568 | 924 | 1,090 | |
Income tax expense | 62 | 193 | 198 | |
Equity in net income of unconsolidated affiliates | [1] | 121 | 135 | 160 |
Income from Continuing Operations | 627 | 866 | 1,052 | |
Loss from discontinued operations, net of tax | (1,093) | (374) | (16) | |
Net (Loss) Income | (466) | 492 | 1,036 | |
Less: Net income attributable to noncontrolling interests | 11 | 18 | 23 | |
Net (Loss) Income Attributable to Xerox | (477) | 474 | 1,013 | |
Net income from continuing operations | $ 616 | $ 848 | $ 1,029 | |
Continuing Operations (in dollars per share) | $ 0.58 | $ 0.77 | $ 0.87 | |
Discontinued operations (in dollars per share) | (1.07) | (0.35) | (0.01) | |
Total Basic (Loss) Earnings per Share | (0.49) | 0.42 | 0.86 | |
Continuing Operations (in dollars per share) | 0.58 | 0.77 | 0.86 | |
Discontinued operations (in dollars per share) | (1.07) | (0.35) | (0.02) | |
Total Diluted (Loss) Earnings per Share | $ (0.49) | $ 0.42 | $ 0.84 | |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net (Loss) Income | $ (466) | $ 492 | $ 1,036 | |
Less: Net income attributable to noncontrolling interests | 11 | 18 | 23 | |
Net (Loss) Income Attributable to Xerox | (477) | 474 | 1,013 | |
Translation adjustments, net | [1] | (346) | (660) | (734) |
Unrealized (losses) gains, net | [1] | (15) | 23 | 15 |
Changes in defined benefit plans, net | [1] | 126 | 153 | (662) |
Other Comprehensive Loss, Net | [1] | (235) | (484) | (1,381) |
Less: Other comprehensive loss, net attributable to noncontrolling interests | [1] | (3) | (1) | (1) |
Other Comprehensive Loss, Net Attributable to Xerox | [1] | (232) | (483) | (1,380) |
Comprehensive (Loss) Income, Net | (701) | 8 | (345) | |
Less: Comprehensive income, net attributable to noncontrolling interests | 8 | 17 | 22 | |
Comprehensive Loss, Net Attributable to Xerox | $ (709) | $ (9) | $ (367) | |
[1] | Refer to Note 21 - Other Comprehensive Loss for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 2,223 | $ 1,228 |
Accounts receivable, net | 961 | 1,068 |
Billed portion of finance receivables, net | 90 | 97 |
Finance receivables, net | 1,256 | 1,315 |
Inventories | 841 | 901 |
Assets of discontinued operations | 1,002 | 1,618 |
Other current assets | 619 | 458 |
Total current assets | 6,992 | 6,685 |
Finance receivables due after one year, net | 2,398 | 2,576 |
Equipment on operating leases, net | 475 | 495 |
Land, buildings and equipment, net | 660 | 717 |
Investments in affiliates, at equity | 1,388 | 1,382 |
Intangible assets, net | 290 | 340 |
Goodwill | 3,787 | 3,951 |
Assets of discontinued operations | 0 | 7,185 |
Other long-term assets | 2,155 | 2,210 |
Total Assets | 18,145 | 25,541 |
Liabilities and Equity | ||
Short-term debt and current portion of long-term debt | 1,011 | 962 |
Accounts payable | 1,126 | 1,342 |
Accrued compensation and benefits costs | 420 | 406 |
Unearned income | 187 | 202 |
Liabilities of discontinued operations | 1,002 | 1,627 |
Other current liabilities | 908 | 715 |
Total current liabilities | 4,654 | 5,254 |
Long-term debt | 5,305 | 6,317 |
Pension and other benefit liabilities | 2,240 | 2,360 |
Post-retirement medical benefits | 698 | 784 |
Liabilities of discontinued operations | 0 | 1,122 |
Other long-term liabilities | 193 | 238 |
Total Liabilities | 13,090 | 16,075 |
Commitments and Contingencies (See Note 18) | ||
Convertible Preferred Stock | 214 | 349 |
Common stock | 1,014 | 1,013 |
Additional paid-in capital | 3,098 | 3,017 |
Retained earnings | 5,039 | 9,686 |
Accumulated other comprehensive loss | (4,348) | (4,642) |
Xerox shareholders’ equity | 4,803 | 9,074 |
Noncontrolling interests | 38 | 43 |
Total Equity | 4,841 | 9,117 |
Total Liabilities and Equity | $ 18,145 | $ 25,541 |
Shares of common stock issued and outstanding | 1,014,375 | 1,012,836 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net (loss) income | $ (466) | $ 492 | $ 1,036 |
Loss from discontinued operations | 1,093 | 374 | 16 |
Income from Continuing Operations | 627 | 866 | 1,052 |
Adjustments required to reconcile net income to cash flows from operating activities: | |||
Depreciation and amortization | 563 | 590 | 639 |
Provision for receivables | 43 | 54 | 50 |
Provision for inventory | 28 | 30 | 26 |
Deferred tax (benefit) expense | (9) | 383 | 152 |
Net gain on sales of businesses and assets | (22) | (44) | (51) |
Undistributed equity in net income of unconsolidated affiliates | (69) | (79) | (91) |
Stock-based compensation | 50 | 27 | 63 |
Restructuring and asset impairment charges | 230 | 27 | 106 |
Payments for restructurings | (118) | (79) | (110) |
Defined benefit pension cost | 127 | 141 | 74 |
Contributions to defined benefit pension plans | (178) | (301) | (269) |
Increase in accounts receivable and billed portion of finance receivables | (151) | (128) | (392) |
Collections of deferred proceeds from sales of receivables | 246 | 259 | 434 |
Decrease (increase) in inventories | 7 | (101) | (22) |
Increase in equipment on operating leases | (268) | (291) | (283) |
Decrease (increase) in finance receivables | 126 | (8) | (10) |
Collections on beneficial interest from sales of finance receivables | 24 | 46 | 79 |
Decrease in other current and long-term assets | 82 | 15 | 9 |
(Decrease) increase in accounts payable and accrued compensation | (244) | (125) | 54 |
Decrease in other current and long-term liabilities | (51) | (45) | (121) |
Net change in income tax assets and liabilities | (182) | (112) | 31 |
Net change in derivative assets and liabilities | (30) | (37) | (14) |
Other operating, net | 187 | (10) | (73) |
Net cash provided by operating activities of continuing operations | 1,018 | 1,078 | 1,333 |
Net cash provided by operating activities of discontinued operations | 77 | 533 | 730 |
Net cash provided by operating activities | 1,095 | 1,611 | 2,063 |
Cash Flows from Investing Activities: | |||
Cost of additions to land, buildings and equipment | (93) | (84) | (119) |
Proceeds from sales of land, buildings and equipment | 25 | 92 | 53 |
Cost of additions to internal use software | (45) | (64) | (57) |
Proceeds from sale of businesses | 0 | 0 | 10 |
Acquisitions, net of cash acquired | (30) | (13) | (34) |
Other investing, net | (3) | 26 | 13 |
Net cash used in investing activities of continuing operations | (146) | (43) | (134) |
Net cash (used in) provided by investing activities of discontinued operations | (251) | 551 | (569) |
Net cash (used in) provided by investing activities | (397) | 508 | (703) |
Cash Flows from Financing Activities: | |||
Net proceeds (payments) on short-term debt | 1,888 | (147) | 145 |
Proceeds from issuance of long-term debt | 25 | 1,079 | 808 |
Payments on long-term debt | (988) | (1,302) | (1,128) |
Common stock dividends | (307) | (302) | (289) |
Preferred stock dividends | (24) | (24) | (24) |
Proceeds from issuances of common stock | 9 | 19 | 55 |
Excess tax benefits from stock-based compensation | 0 | 19 | 18 |
Payments to acquire treasury stock, including fees | 0 | (1,302) | (1,071) |
Repurchases related to stock-based compensation | (1) | (51) | (41) |
Distributions to noncontrolling interests | (17) | (62) | (87) |
Other financing | (1) | (1) | (10) |
Net cash provided by (used in) financing activities | 584 | (2,074) | (1,624) |
Effect of exchange rate changes on cash and cash equivalents | (30) | (77) | (81) |
(Increase) decrease in cash of discontinued operations | (257) | 8 | (28) |
Increase (decrease) in cash and cash equivalents | 995 | (24) | (373) |
Cash and cash equivalents at beginning of year | 1,228 | 1,252 | 1,625 |
Cash and Cash Equivalents at End of Year | $ 2,223 | $ 1,228 | $ 1,252 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Xerox Shareholders' Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCL [Member] | [1] | Noncontrolling Interests [Member] | Conduent [Domain] | Conduent [Domain]Common Stock [Member] | Conduent [Domain]Additional Paid-in Capital [Member] | Conduent [Domain]Treasury Stock [Member] | Conduent [Domain]Retained Earnings [Member] | Conduent [Domain]Xerox Shareholders' Equity [Member] | Conduent [Domain]AOCL [Member] | Conduent [Domain]Noncontrolling Interests [Member] | |
Beginning Balance at Dec. 31, 2013 | $ 12,300 | $ 1,210 | $ 5,282 | $ (252) | $ 8,839 | $ (2,779) | ||||||||||||
Noncontrolling Interests Beginning Balance at Dec. 31, 2013 | $ 119 | |||||||||||||||||
Total Equity Beginning Balance at Dec. 31, 2013 | $ 12,419 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Comprehensive (loss) income, net | (367) | (367) | 0 | 0 | 0 | 1,013 | (1,380) | |||||||||||
Comprehensive income (loss), net attributable to noncontrolling interest | 22 | 22 | ||||||||||||||||
Comprehensive income (loss), net including portion attributable to noncontrolling interest | (345) | |||||||||||||||||
Cash dividends declared-common | [2] | (293) | (293) | 0 | 0 | 0 | (293) | 0 | 0 | |||||||||
Cash dividends declared-preferred | [3] | (24) | (24) | 0 | 0 | 0 | (24) | 0 | 0 | |||||||||
Conversion of notes to common stock | 9 | 9 | 1 | 8 | 0 | 0 | 0 | 0 | ||||||||||
Stock option and incentive plans, net | 124 | 124 | 14 | 110 | 0 | 0 | 0 | 0 | ||||||||||
Payments to acquire treasury stock, including fees | (1,071) | (1,071) | 0 | 0 | (1,071) | 0 | 0 | 0 | ||||||||||
Cancellation of treasury stock | 0 | 0 | (101) | (1,117) | 1,218 | 0 | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | (66) | 0 | 0 | 0 | 0 | 0 | 0 | (66) | ||||||||||
Ending Balance at Dec. 31, 2014 | 10,678 | 1,124 | 4,283 | (105) | 9,535 | (4,159) | ||||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2014 | 75 | |||||||||||||||||
Total Equity Ending Balance at Dec. 31, 2014 | 10,753 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Comprehensive (loss) income, net | (9) | (9) | 0 | 0 | 0 | 474 | (483) | |||||||||||
Comprehensive income (loss), net attributable to noncontrolling interest | 17 | 17 | ||||||||||||||||
Comprehensive income (loss), net including portion attributable to noncontrolling interest | 8 | |||||||||||||||||
Cash dividends declared-common | [2] | (299) | (299) | 0 | 0 | 0 | (299) | 0 | 0 | |||||||||
Cash dividends declared-preferred | [3] | (24) | (24) | 0 | 0 | 0 | (24) | 0 | 0 | |||||||||
Stock option and incentive plans, net | 30 | 30 | 11 | 19 | 0 | 0 | 0 | 0 | ||||||||||
Payments to acquire treasury stock, including fees | (1,302) | (1,302) | 0 | 0 | (1,302) | 0 | 0 | 0 | ||||||||||
Cancellation of treasury stock | 0 | 0 | (122) | (1,285) | 1,407 | 0 | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | (49) | 0 | 0 | 0 | 0 | 0 | 0 | (49) | ||||||||||
Ending Balance at Dec. 31, 2015 | 9,074 | 9,074 | 1,013 | 3,017 | 0 | 9,686 | (4,642) | |||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2015 | 43 | 43 | ||||||||||||||||
Total Equity Ending Balance at Dec. 31, 2015 | 9,117 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Comprehensive (loss) income, net | (709) | (709) | 0 | 0 | 0 | (477) | (232) | |||||||||||
Comprehensive income (loss), net attributable to noncontrolling interest | 8 | 8 | ||||||||||||||||
Comprehensive income (loss), net including portion attributable to noncontrolling interest | (701) | |||||||||||||||||
Cash dividends declared-common | [2] | (317) | (317) | 0 | 0 | 0 | (317) | 0 | 0 | |||||||||
Cash dividends declared-preferred | [3] | (24) | (24) | 0 | 0 | 0 | (24) | 0 | 0 | |||||||||
Stock option and incentive plans, net | 82 | 82 | 1 | 81 | 0 | 0 | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | (13) | 0 | 0 | 0 | 0 | 0 | 0 | (13) | ||||||||||
Stockholders' Equity Note, Spinoff Transaction | $ (3,303) | $ 0 | $ 0 | $ 0 | $ (3,829) | $ (3,303) | $ 526 | $ 0 | ||||||||||
Ending Balance at Dec. 31, 2016 | 4,803 | $ 4,803 | $ 1,014 | $ 3,098 | $ 0 | $ 5,039 | $ (4,348) | |||||||||||
Noncontrolling Interests Ending Balance at Dec. 31, 2016 | 38 | $ 38 | ||||||||||||||||
Total Equity Ending Balance at Dec. 31, 2016 | $ 4,841 | |||||||||||||||||
[1] | AOCL - Accumulated other comprehensive loss. | |||||||||||||||||
[2] | Cash dividends declared on common stock of $0.0775 in each quarter of 2016, $0.0700 in each quarter of 2015 and $0.0625 in each quarter of 2014. | |||||||||||||||||
[3] | Cash dividends declared on preferred stock of $20 per share in each quarter of 2016, 2015 and 2014. |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends per common share (in dollars per share) | $ 0.0775 | $ 0.0775 | $ 0.0775 | $ 0.0775 | $ 0.0700 | $ 0.0700 | $ 0.0700 | $ 0.0700 | $ 0.0625 | $ 0.0625 | $ 0.0625 |
Dividends per preferred share (in dollars per share) | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context suggests otherwise. Overview On December 31, 2016, Xerox Corporation completed the Separation of its Business Process Outsourcing (BPO) business from its Document Technology and Document Outsourcing (DT/DO) business (the “Separation”). The Separation was accomplished through the transfer of the BPO business into a new legal entity, Conduent Incorporated (Conduent), and then distributing one hundred percent ( 100% ) of the outstanding common stock of Conduent to Xerox Corporation stockholders (the “Distribution”). Xerox Corporation stockholders received one share of Conduent’s common stock for every five shares of Xerox Corporation’s common stock held as of the close of business on the record date. The Separation and Distribution was structured to be tax-free for Xerox Corporation stockholders for federal income tax purposes. Conduent is now an independent public company trading on the New York Stock Exchange (“NYSE”) under the symbol “CNDT”. After the Separation, Xerox retained the DT/DO businesses and Xerox does not beneficially own any shares of Conduent common stock. In connection with the Separation, Xerox entered into several agreements with Conduent to (1) effect the legal and structural separation of Xerox and Conduent, (2) govern the relationship between Xerox and Conduent up to and after the completion of the Separation and (3) allocate between Xerox and Conduent various assets, liabilities and obligations, including, among other things, employee benefits and tax-related assets and liabilities. The agreements entered into included a separation and distribution agreement, a transition service agreement, a tax matters agreement, an employee matters agreement, an intellectual property agreement and a trademark license agreement. See Note 4, Divestitures, for more information regarding these agreements. Description of Business Xerox is a $10.8 billion global enterprise for document management solutions. We provide extensive leading-edge document technology, services, software and genuine Xerox supplies for a range of customers including small and mid-size businesses, large enterprises, governments, graphic communications providers, and for our partners who serve them. We operate in more than 160 countries worldwide. Basis of Consolidation The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of (Loss) Income from the date of acquisition. We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of (Loss) Income from the date such determination is made. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements. Discontinued Operations As previously disclosed, on December 31, 2016 Xerox completed the separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the Separation and Distribution and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016. In 2014, we announced an agreement to sell the Information Technology Outsourcing (ITO) business to Atos SE (Atos). As a result of this agreement, we reported the ITO business as held for sale and a discontinued operation up through its date of sale, which was completed on June 30, 2015. In 2014, we also completed the disposal of Xerox Audio Visual Solutions, Inc. (XAV), which was also reported as discontinued operation. Results from these businesses are reported as Discontinued Operations and all prior period results have been reclassified to conform to this presentation. Refer to Note 4 - Divestitures for additional information regarding discontinued operations. Prior Period Adjustments In 2015, we recorded a $16 out-of-period adjustment associated with the over-accrual of an employee benefit liability account. The impact of this adjustment was not material to any individual prior quarter or year and was not material to our 2015 results. Use of Estimates The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016 : Year Ended December 31, Expense/(Income) 2016 2015 2014 Provisions for restructuring and related costs $ 264 $ 27 $ 106 Provision for receivables 43 54 50 Provisions for obsolete and excess inventory 28 30 26 Provision for product warranty liability 15 22 25 Depreciation and obsolescence of equipment on operating leases 276 286 297 Depreciation of buildings and equipment 148 151 179 Amortization of internal use software 73 83 88 Amortization of product software 4 4 4 Amortization of acquired intangible assets 58 60 65 Amortization of customer contract costs 4 6 6 Defined pension benefits - net periodic benefit cost 127 141 74 Retiree health benefits - net periodic benefit cost 35 2 3 Income tax expense 62 193 198 Changes in Estimates In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations. New Accounting Standards and Accounting Changes Except for the Accounting Standard Updates (ASU's) discussed below, the new ASU's issued by the FASB during the last two years did not have any significant impact on the Company. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for our fiscal year beginning January 1, 2018. Subsequent to the issuance of ASU 2014-09, the FASB issued the following ASU’s which amend or provide additional guidance on topics addressed in ASU 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue Recognition - Principal versus Agent (reporting revenue gross versus net). In April 2016, the FASB issued ASU 2016-10, Revenue Recognition - Identifying Performance Obligations and Licenses. In May 2016, the FASB issued ASU 2016-12, Revenue Recognition - Narrow Scope Improvements and Practical Expedients. We will adopt this standard beginning January 1, 2018 and expect to use the permitted modified retrospective method. Under current revenue recognition guidance, a significant majority of our revenue is recorded when we invoice customers, as that is normally the point at which all the revenue recognition criteria are met. Under ASU 2014-09, we expect the unit of accounting, that is, the identification performance obligations, will be consistent with current revenue guidance. Additionally, based on the nature of our contracts we expect to continue to recognize revenue upon invoicing the customer for the large majority of our revenue when we adopt ASU 2014-09. Accordingly, the adoption of this standard is not expected to have a material impact for the large majority of our revenues. Additionally, a significant portion of our equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these sales are not expected to be impacted by the adoption of ASU 2014-09. We are continuing to evaluate certain contracts, which are more complex or where revenue recognition criteria are not currently met when invoicing occurs, to determine their treatment under ASU 2014-09. Additionally, we are also assessing the impacts of the cost deferral guidance required by ASU 2014-09 to determine if there will be any significant change from our current practice. Although at this time we don’t expect a material change in our revenue recognition, in 2017 we expect to continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02 , Leases . This update requires the recognition of leased assets and lease obligations by lessees for those leases currently classified as operating leases under existing lease guidance. Short term leases with a term of 12 months or less are not required to be recognized. The update also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for our fiscal year beginning January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. The aggregate undiscounted value of our operating lease commitments at December 31, 2016 was approximately $450 . Cash Flows In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update provides specific guidance on eight cash flow classification issues where current GAAP is either unclear or does not include specific guidance. This update is effective for our fiscal year beginning January 1, 2018. This update includes specific guidance which requires cash collected on beneficial interests received in a sale of receivables be classified as inflows from investing activities. Currently, those collections are reported in operating cash flows. We reported $270 and $305 of collections on beneficial interests as operating cash inflows on the Statement of Cash Flows for the years ended December 31, 2016 and 2015, respectively. The other issues noted in this update are not expected to have a material impact on our financial condition, results of operations or cash flows. Additionally, in November 2016 the FASB issued ASU 2016-18 , Statement of Cash Flows - Restricted Cash . The update requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We held $179 and $156 of restricted cash, currently reported in other current or long-term assets at December 31, 2016 and 2015, respectively. This update is effective for our fiscal year beginning January 1, 2018. We are currently evaluating the impact, if any, that the adoption of ASU 2016-18 may have on our statements of cash flows in future reporting periods. Stock Compensation In March 2016, the FASB issued ASU 2016-09 , Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update includes provisions to simplify certain aspects related to the accounting for share-based awards and the related financial statement presentation. The update also requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled as compared to equity as allowed under certain conditions by current US GAAP. This change is required to be adopted prospectively in the period of adoption. In addition, the ASU modifies the classification of certain share-based payment activities within the statements of cash flows and these changes are required to be applied retrospectively to all periods presented. ASU 2016-09 is effective for our fiscal year beginning January 1, 2017. The adoption of ASU 2016-09 for the most part is not expected to have a material impact on our financial condition, results of operations or cash flows. However, the update may add volatility to our income tax expense in future periods depending upon, among other things, the level of tax expense and the price of the Company's common stock at the date of vesting for share-based awards. Income Taxes In October 2016, the FASB issued ASU 2016-16 , Income Taxes - Intra-Entity Transfers of Assets Other than Inventory. This update requires recognition of the income-tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs. Under current GAAP, recognition of the income tax consequences for asset transfers other than inventory could not be recognized until the asset is sold to a third party. This update is effective for our fiscal year beginning January 1, 2018 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of the adoption of ASU 2016-16 on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13 , Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets. The update impacts financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted as of January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. Business Combinations In January 2017, the FASB issued ASU 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. Intangibles - Goodwill and Other In January 2017 the FASB issued ASU 2017-04 , Intangibles - Goodwill and Other - Simplifying the Goodwill Impairment Test , which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. The adoption of this standard is not expected to have any effect on our financial condition, results of operations or cash flows. Equity Method Accounting In March 2016, the FASB issued ASU 2016-07 , Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. This update is effective for our fiscal year beginning January 1, 2017, with early adoption permitted. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows. Interest In April 2015, the FASB issued ASU 2015-03 , Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 , which indicated that the SEC staff would not object to an entity deferring and presenting debt issuance costs associated with a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Upon adoption of this update effective January 1, 2016, we reclassified $29 of debt issuance costs to long-term debt from Other long-term assets. Prior periods were retroactively revised. The costs associated with our credit agreement of $4 at January 1, 2016 remained reported as a deferred charge in Other long-term assets. Other Updates In 2016 and 2015, the FASB also issued the following Accounting Standards Updates which have not had, and are not expected to have, a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: • Accounting Changes and Error Corrections (Topic 250): ASU 2017-03 , Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323). Transition guidance included in certain issued but not yet adopted ASUs was updated to reflect this amendment. • Financial Instruments - Classification and Measurement: ASU 2016-01 , Financial Instruments - Recognition and Measurement of Financial Instruments and Financial Liabilities. This update is effective for our fiscal year beginning January 1, 2018. • Derivatives and Hedging: ASU 2016-06 , Contingent Put and Call Options in Debt Instruments, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Derivatives and Hedging: ASU 2016-05 , Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Fair Value Measurements: ASU 2015-07 , Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) , which was effective for our fiscal year January 1, 2016. This update impacted our Plan Asset disclosures included in Note 16 - Employee Benefit Plans. • Inventory: ASU 2015-11 , Simplifying the Subsequent Measurement of Inventory, which is effective for our fiscal year beginning January 1, 2017. • Disclosures of Going Concern Uncertainties: ASU 2014-15 , Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which was effective for our fiscal year ended December 31, 2016. • Stock Compensation: ASU 2014-12 , Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, which was effective for our fiscal year beginning January 1, 2016. Summary of Accounting Policies Revenue Recognition We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows: Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis. Maintenance Services: Maintenance service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract. Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.” Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product. Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms. Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement. Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. Services: Revenues associated with our document management services are generally recognized as services are rendered, which is generally on the basis of the number of transactions processed. In service arrangements where final acceptance of a printing solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. In connection with our services arrangements, we may incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. These capitalized costs are amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. Our services contracts may also include the sale of equipment and software. In |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting During 2016 our primary reportable segments were Document Technology and Services . As a result of the Separation discussed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, our BPO business was not reported in our 2016 segment financial information since this business was reported as a discontinued operation in 2016. Accordingly, the Services reportable segment reflects only the financial information for our Document Outsourcing services business and certain other service offerings that were transferred from the BPO business to Document Outsourcing prior to the Separation, and therefore not included in the Conduent Separation and Distribution. In addition, in the first quarter of 2016, we revised our segment reporting to exclude the non-service elements of our defined-benefit pension and retiree-health plan costs from Segment profit. Segment profit was also revised to reflect the transfer of corporate functions to Conduent, which resulted in a full year benefit of approximately $80 from additional corporate costs, above those historically allocated to the BPO business, transferred to Conduent upon the Separation. Current and prior year amounts were revised accordingly to reflect all of the above noted changes. The Document Technology segment is centered around strategic product groups, which share common technology, manufacturing and product platforms. Segment revenues include the sale of document systems and supplies, provision of technical service and financing of products. Our products range from: • “Entry,” which includes A4 devices and desktop printers; to • “Mid-range,” which includes A3 devices that generally serve workgroup environments in mid 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. The Services segment includes our legacy Document Outsourcing business as well as a set of communications and marketing solutions offerings that were previously part of the BPO business and were transferred to Xerox upon Separation. This segment comprises solutions and services including Managed Print Services (MPS), Workflow Automation Services, Communication and Marketing Solutions and revenues from our Partner Print Services offerings. 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. Selected financial information for our reportable segments was as follows: Document Technology Services Other Total 2016 (1) Revenue $ 6,458 $ 3,438 $ 550 $ 10,446 Finance income 251 67 7 325 Total Segment Revenue $ 6,709 $ 3,505 $ 557 $ 10,771 Depreciation and amortization (2) $ 274 $ 218 $ 13 $ 505 Interest expense 108 19 182 309 Segment profit (loss) 901 469 (223 ) 1,147 Equity in net income of unconsolidated affiliates 97 24 — 121 2015 (1) Revenue $ 7,098 $ 3,485 $ 536 $ 11,119 Finance income 267 72 7 346 Total Segment Revenue $ 7,365 $ 3,557 $ 543 $ 11,465 Depreciation and amortization (2) $ 297 $ 222 $ 11 $ 530 Interest expense 109 20 217 346 Segment profit (loss) 1,041 458 (225 ) 1,274 Equity in net income of unconsolidated affiliates 108 27 — 135 2014 (1) Revenue $ 8,044 $ 3,658 $ 590 $ 12,292 Finance income 314 65 8 387 Total Segment Revenue $ 8,358 $ 3,723 $ 598 $ 12,679 Depreciation and amortization (2) $ 334 $ 225 $ 15 $ 574 Interest expense 121 18 227 366 Segment profit (loss) 1,285 443 (218 ) 1,510 Equity in net income of unconsolidated affiliates 128 32 — 160 _____________ (1) Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). (2) Depreciation and amortization excludes amortization of intangible assets - see reconciliation below. The following is a reconciliation of segment profit to pre-tax income: Year Ended December 31, 2016 2015 2014 Total Segment Profit $ 1,147 $ 1,274 $ 1,510 Reconciling items: Amortization of intangible assets (58 ) (60 ) (65 ) Equity in net income of unconsolidated affiliates (121 ) (135 ) (160 ) Restructuring and related costs (264 ) (27 ) (106 ) Restructuring charges of Fuji Xerox (3 ) (4 ) (3 ) Business transformation costs (1) (2 ) (8 ) (7 ) Non-service retirement-related costs (2) (131 ) (116 ) (79 ) Pre-tax Income $ 568 $ 924 $ 1,090 _____________ (1) Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs. (2) Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements. Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for the three years ended December 31: Revenues Long-Lived Assets (1) 2016 2015 2014 2016 2015 United States $ 6,403 $ 6,734 $ 7,184 $ 824 $ 886 Europe 2,861 3,155 3,649 359 435 Other areas 1,507 1,576 1,846 178 163 Total Revenues and Long-Lived Assets $ 10,771 $ 11,465 $ 12,679 $ 1,361 $ 1,484 _____________ (1) Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Equipment on operating leases, net, (iii) Internal use software, net and (iv) Product software, net. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2016 Acquisitions In 2016 we added two equipment dealers to our Global Imaging Systems network for approximately $30 in cash. The acquisitions were in our Document Technology segment and are consistent with our strategy to expand distribution in under-penetrated markets. 2016 Summary Our 2016 acquisitions resulted in 100% ownership of the acquired companies. The operating results of the acquisitions described above are not material to our financial statements and are included within our results from the respective acquisition dates. Our 2016 acquisitions contributed aggregate revenues of approximately $14 to our 2016 total revenues from their respective acquisition dates. The purchase prices for all acquisitions were primarily allocated to intangible assets and goodwill based on third-party valuations and management's estimates. The primary elements that generated the goodwill are the value of synergies and the acquired assembled workforce. Of the goodwill recorded in 2016, 100% is expected to be deductible for tax purposes. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information. The following table summarizes the purchase price allocations for our 2016 acquisitions as of the acquisition dates: Weighted-Average Life (Years) Total 2016 Acquisitions Accounts/finance receivables $ 2 Intangible assets: Customer relationships 10 7 Trademarks 20 2 Non-compete agreements 4 1 Goodwill 19 Other assets 3 Total Assets Acquired 34 Liabilities assumed (4 ) Total Purchase Price $ 30 2015 and 2014 Acquisitions In December 2014 we acquired a large document equipment dealer in the southern U.S. for approximately $22 in cash. This acquisition complements our existing footprint in the southern U.S. by offering Xerox's managed services along with office and printing technology. Our Document Technology segment acquired two businesses in 2015 and one additional business in 2014 for approximately $13 and $12 in cash, respectively, which expanded our distribution capability of products and services in North America. 2015 and 2014 Summary All of our 2015 and 2014 acquisitions resulted in 100% ownership of the acquired companies. The operating results of the 2015 and 2014 acquisitions described above are not material to our financial statements and were included within our results from the respective acquisition dates. The purchase prices for all acquisitions were primarily allocated to intangible assets and goodwill based on third-party valuations and management's estimates. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information. Our 2015 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $10 and $3 to our 2016 and 2015 total revenues, respectively. Our 2014 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $32 , $30 and $2 to our 2016 , 2015 and 2014 total revenues, respectively. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Business Process Outsourcing (BPO) As previously disclosed, on December 31, 2016, Xerox completed the Separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge of $935 was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business. This charge is reported in the Loss from discontinued operations, net of tax, for the year ended December 31, 2016. Total separation costs of $159 , which were incurred during 2016, are included in Loss from discontinued operations, net of tax, in the accompanying Consolidated Statements of (Loss) Income. Separation costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services related to the Separation transaction as well as costs associated with the operational separation of the two companies, such as those related to human resources, brand management, real estate and information management to the extent not capitalized . Separation costs also include the costs associated with bonuses and restricted stock grants awarded to employees for retention through the Separation. In connection with the Separation, Xerox and Conduent entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition service agreement, a tax matters agreement, an employee matters agreement, an intellectual property agreement and a trademark license agreement. The transition services primarily involve Xerox providing services to Conduent related to information technology and human resource infrastructure and are all expected to be for terms of no more than one year post-separation. In addition, Xerox is also party to various commercial agreements with Conduent entities. The amount billed for transition services provided under the above agreements as well as sales and purchases to and from Conduent are not expected to be material in future periods. In preparation for the Separation, in the fourth quarter 2016, Conduent incurred approximately $2.0 billion in new borrowings. The net proceeds from these borrowings of $1.9 billion, after debt issuance costs, were used to fund the approximately $1.8 billion of net cash distributions Conduent made to Xerox prior to the Distribution Date. Xerox used a portion of the cash distribution proceeds to repay the $1.0 billion Senior Unsecured Term Facility in January 2017, which was required to be repaid upon completion of the Separation. This $1.0 billion of cash and debt is excluded from the Cash and cash equivalents and Total Debt at December 31, 2016, respectively, and is reported in Current Assets and Current Liabilities of discontinued operations at December 31, 2016, respectively. Interest expense associated with this borrowing incurred during 2016 is included in Loss from discontinued operations, net of tax. Xerox intends to use the balance of the proceeds received to redeem Senior Notes that are coming due in the first quarter 2017. Refer to Note 13 - Debt for additional information. Information Technology Outsourcing (ITO) In 2014, we entered into an agreement for the sale of our ITO business to Atos and began reporting it as a Discontinued Operation. All prior periods were accordingly revised to conform to this presentation. The sale was completed on June 30, 2015. The final sale price was approximately $940 ($ 930 net of cash sold) and Atos also assumed approximately $85 of capital lease obligations and pension liabilities. The ITO business included approximately 9,600 employees in 42 countries, who were transferred to Atos upon closing. We recorded a net pre-tax loss of $181 ( $160 after-tax) in 2014 related to the agreement to sell, reflecting the write-down of the carrying value of the ITO disposal group, inclusive of goodwill, to its estimated fair value less costs to sell. We recorded an additional net pre-tax loss of $101 in 2015, primarily at closing, related to an adjustment of the sales price and related expenses associated with the disposal, as well as reserves for certain obligations and indemnifications we retained as part of the final closing negotiations. In addition, we recorded additional tax expense of $44 in 2015 primarily related to the difference between the book basis and tax basis of allocated goodwill, which could only be recorded upon final disposal of the business. We made an additional payment in 2016 to Atos of approximately $ 52 , representing a $ 28 adjustment to the final sales price and a payment of $ 24 due from closing. The payment was reflected in investing cash flows of discontinued operations as an adjustment of the sales proceeds. Other Discontinued Operations In 2014, we completed the closure of Xerox Audio Visual Solutions, Inc. (XAV), a small audio visual business within our Global Imaging Systems subsidiary, and recorded a net pre-tax loss on disposal of $1 . XAV provided audio visual equipment and services to enterprise and government customers. In 2014, we sold the Truckload Management Services, Inc. (TMS) business for $15 and recorded a net pre-tax loss on disposal of $1 . TMS provided document capture and submission solutions as well as campaign management, media buying and digital marketing services to the long haul trucking and transportation industry. Summarized financial information for our Discontinued Operations is as follows: Year Ended December 31, 2016 Conduent ITO Total Revenue $ 6,355 $ — $ 6,355 Loss from operations $ (1,343 ) $ — $ (1,343 ) Loss on disposal — — — Net loss before income taxes (1,343 ) — (1,343 ) Income tax benefit 250 — 250 Loss from discontinued operations, net of tax $ (1,093 ) $ — $ (1,093 ) Year Ended December 31, 2015 Conduent ITO Total Revenue $ 6,604 $ 619 $ 7,223 (Loss) income from operations $ (511 ) $ 104 $ (407 ) Loss on disposal — (101 ) (101 ) Net (loss) income before income taxes (511 ) 3 (508 ) Income tax benefit (expense) 215 (81 ) 134 Loss from discontinued operations, net of tax $ (296 ) $ (78 ) $ (374 ) Year Ended December 31, 2014 Conduent ITO Other Total Revenue $ 6,885 $ 1,320 $ 45 $ 8,250 Income (loss) from operations $ 116 $ 74 $ (1 ) $ 189 Loss on disposal — (181 ) (1 ) (182 ) Net income (loss) before income taxes 116 (107 ) (2 ) 7 Income tax expense (17 ) (5 ) (1 ) (23 ) Income (loss) from discontinued operations, net of tax $ 99 $ (112 ) $ (3 ) $ (16 ) The following is a summary of selected financial information of Conduent for the three years ended December 31, 2016 : Year Ended December 31, 2016 2015 2014 Cost and Expenses: Cost of services $ 5,456 $ 5,923 $ 5,749 Other Expenses (1) 2,065 1,192 1,020 Total Costs and Expenses $ 7,521 $ 7,115 $ 6,769 Selected amounts included in Costs and Expenses: Depreciation of buildings and equipment $ 130 $ 126 $ 145 Amortization of internal use software 49 51 52 Amortization of product software 61 65 58 Amortization of acquired intangible assets 280 250 250 Amortization of customer contract costs 93 108 122 Operating lease rent expense 378 389 385 Defined contribution plans 35 34 31 Interest expense (2) 13 8 11 Goodwill impairment charge (3) 935 — — Expenditures: Cost of additions to land, buildings and equipment $ 150 $ 126 $ 144 Cost of additions to internal use software 39 26 26 Customer-related deferred set-up/transition and inducement costs 62 55 55 _____________ (1) 2016 amount excludes $159 of Separation related costs and $ 18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations. (2) Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016. (3) Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business. The following is a summary of the major categories of assets and liabilities that were transferred to Conduent as of December 31, 2016. The balances as of December 31, 2015 are presented for comparative purposes and are included in Assets and Liabilities of discontinued operations in the Consolidated Balance Sheet at December 31, 2015: December 31, 2016 December 31, 2015 Cash and cash equivalents $ 390 $ 140 Accounts receivable, net 1,287 1,251 Other current assets 239 227 Total current assets of discontinued operations 1,916 1,618 Land, buildings and equipment, net 283 279 Intangible assets, net 1,144 1,425 Goodwill 3,889 4,872 Other long-term assets 477 609 Total long-term assets of discontinued operations 5,793 7,185 Total Assets of Discontinued Operations $ 7,709 $ 8,803 Current portion of long-term debt $ 28 $ 23 Accounts payable 159 272 Accrued pension and benefit costs 284 245 Unearned income 208 226 Other current liabilities 742 861 Total current liabilities of discontinued operations 1,421 1,627 Long-term debt 1,913 37 Pension and other benefit liabilities 173 153 Other long-term liabilities 757 932 Total long-term liabilities of discontinued operations 2,843 1,122 Total Liabilities of Discontinued Operations $ 4,264 $ 2,749 As a result of the Separation, the Company distributed $3,445 in net assets of Conduent, which has been reflected as a reduction to Preferred Stock for $142 , Retained Earnings for $3,829 and Accumulated other comprehensive loss for $526 in the accompanying Consolidated Balance Sheet and Consolidated Statements of Shareholders' Equity as of December 31, 2016. The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016. Acquisition Date of Acquisition Acquisition Price RSA Medical LLC (RSA Medical) September 2015 $ 141 Intellinex LLC January 2015 28 Consilience Software, Inc. (Consilience) September 2014 25 ISG Holdings, Inc. (ISG) May 2014 225 Invoco Holding GmbH (Invoco) January 2014 54 |
Accounts Receivables, Net
Accounts Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivables, Net | Accounts Receivable, Net Accounts receivable, net were as follows: December 31, 2016 2015 Invoiced $ 651 $ 741 Accrued 374 401 Allowance for doubtful accounts (64 ) (74 ) Accounts Receivable, Net $ 961 $ 1,068 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 receivable 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 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 their 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 Other current assets in the accompanying Consolidated Balance Sheets and were $48 and $61 at December 31, 2016 and 2015 , respectively. Under most of the agreements, 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 receivables sold and derecognized from our balance sheet, $531 and $524 remained uncollected as of December 31, 2016 and 2015 , respectively. Accounts receivable sales were as follows: Year Ended December 31, 2016 2015 2014 Accounts receivable sales $ 2,267 $ 2,142 $ 2,563 Deferred proceeds 233 247 387 Loss on sale of accounts receivable 16 13 15 Estimated increase (decrease) to operating cash flows (1) 30 62 (64 ) _____________ (1) Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. Finance Receivables, Net Finance receivables include sales-type leases, direct financing leases and installment loans arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets. Finance receivables, net were as follows: December 31, 2016 2015 Gross receivables $ 4,380 $ 4,683 Unearned income (526 ) (577 ) Subtotal 3,854 4,106 Residual values — — Allowance for doubtful accounts (110 ) (118 ) Finance Receivables, Net 3,744 3,988 Less: Billed portion of finance receivables, net 90 97 Less: Current portion of finance receivables not billed, net 1,256 1,315 Finance Receivables Due After One Year, Net $ 2,398 $ 2,576 Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90 ): 2017 2018 2019 2020 2021 Thereafter Total $ 1,628 $ 1,225 $ 855 $ 485 $ 175 $ 12 $ 4,380 Sale of Finance Receivables In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of the associated lease receivables. There have been no transfers or sales of finance receivables since 2013. We continue to service the sold receivables and record servicing fee income over the expected life of the associated receivables. The following is a summary of our prior sales activity: Year Ended December 31, 2013 2012 Net carrying value (NCV) sold $ 676 $ 682 Allowance included in NCV 17 18 Cash proceeds received 635 630 Beneficial interests received 86 101 The principal value of the finance receivables derecognized from our balance sheet was $76 and $238 at December 31, 2016 and 2015 , respectively (sales value of approximately $81 and $256 , respectively). Summary Finance Receivable Sales 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 which were $24 and $38 at December 31, 2016 and 2015 , respectively, and are included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Beneficial interests of $13 and $30 at December 31, 2016 and 2015 , respectively, are held by the bankruptcy-remote subsidiaries 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 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 their weighted average lives of less than two years. The net impact from the sales of finance receivables on operating cash flows is summarized below: 2016 2015 2014 2013/2012 Net cash received for sales of finance receivables (1) $ — $ — $ — $ 1,256 Impact from prior sales of finance receivables (2) (186 ) (342 ) (527 ) (437 ) Collections on beneficial interests 30 56 94 58 Estimated (Decrease) Increase to Operating Cash Flows $ (156 ) $ (286 ) $ (433 ) $ 877 _____________ (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 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. Customer credit limits are based upon an initial evaluation of the customer's credit quality and we adjust that limit accordingly based upon ongoing credit assessments of the customer, including payment history and changes in credit quality. The allowance for doubtful accounts and provision for credit losses represents an estimate of the losses expected to be incurred from the Company's finance receivable portfolio. The level of the allowance is determined on a collective basis by applying projected loss rates to our different portfolios by country, which represent our portfolio segments. This is the level at which we develop and document our methodology to determine the allowance for credit losses. This loss rate is primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current economic conditions as well as delinquency trends, resolution rates, the aging of receivables, credit quality indicators and the financial health of specific customer classes or groups. The allowance for doubtful finance receivables is inherently more difficult to estimate than the allowance for trade accounts receivable because the underlying lease portfolio has an average maturity, at any time, of approximately two to three years and contains past due billed amounts, as well as unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for doubtful accounts. The identification of account-specific exposure is not a significant factor in establishing the allowance for doubtful finance receivables. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. Since our allowance for doubtful finance receivables is determined by country, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of those countries/regions. Loss rates in the U.S. remained steady and did not change significantly during 2016 and 2015 . Since Europe is comprised of various countries and regional economies, the risk profile within our European portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in Europe were $15 in 2016 as compared to $17 in 2015, reflecting continued stabilization of Europe from the credit issues that began back in 2011. 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 (2) Total Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 11 6 10 1 28 Charge-offs (8 ) (10 ) (17 ) (1 ) (36 ) Recoveries and other (3) — 1 (6 ) — (5 ) Balance at December 31, 2015 $ 54 $ 17 $ 45 $ 2 $ 118 Provision 10 3 11 — 24 Charge-offs (12 ) (8 ) (15 ) — (35 ) Recoveries and other (3) 3 4 (4 ) — 3 Balance at December 31, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Finance Receivables Collectively Evaluated for Impairment: December 31, 2015 (4) $ 2,174 $ 365 $ 1,509 $ 58 $ 4,106 December 31, 2016 (4) $ 2,138 $ 378 $ 1,286 $ 52 $ 3,854 _____________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) 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. (4) Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015 , respectively. In the U.S. and Canada, customers are further evaluated or segregated by class based on industry sector. The primary customer classes are Finance & Other Services, Government & Education; Graphic Arts; Industrial; Healthcare and Other. In Europe, customers are further grouped by class based on the country or region of the customer. The primary customer classes include the U.K./Ireland, France and the following European regions - Central, Nordic and Southern. These groupings or classes are used to understand the nature and extent of our exposure to credit risk arising from finance receivables. 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 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 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 with 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, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation 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: December 31, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Finance and other services $ 181 $ 342 $ 95 $ 618 $ 195 $ 285 $ 91 $ 571 Government and education 543 57 8 608 575 48 7 630 Graphic arts 138 102 107 347 145 92 127 364 Industrial 82 78 24 184 89 62 22 173 Healthcare 79 47 17 143 90 46 19 155 Other 82 103 53 238 121 107 53 281 Total United States 1,105 729 304 2,138 1,215 640 319 2,174 Finance and other services 54 43 15 112 55 35 9 99 Government and education 52 6 2 60 59 7 2 68 Graphic arts 39 37 24 100 45 35 21 101 Industrial 21 13 6 40 23 12 3 38 Other 33 25 8 66 33 23 3 59 Total Canada 199 124 55 378 215 112 38 365 France 181 222 51 454 203 207 101 511 U.K/Ireland 189 63 1 253 235 91 3 329 Central (1) 182 148 19 349 206 186 25 417 Southern (2) 36 131 14 181 36 138 17 191 Nordic (3) 26 22 1 49 24 35 2 61 Total Europe 614 586 86 1,286 704 657 148 1,509 Other 35 15 2 52 41 16 1 58 Total $ 1,953 $ 1,454 $ 447 $ 3,854 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. The aging of our receivables portfolio is based upon the number of days an invoice is past due. Receivables that are more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance. We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed reasonably assured. The aging of our billed finance receivables is as follows: December 31, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordic (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 December 31, 2015 (4) Current 31-90 >90 Days Total Billed Unbilled Total >90 Days Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordic (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Finance Receivables, Net
Finance Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Finance Receivables, Net | Accounts Receivable, Net Accounts receivable, net were as follows: December 31, 2016 2015 Invoiced $ 651 $ 741 Accrued 374 401 Allowance for doubtful accounts (64 ) (74 ) Accounts Receivable, Net $ 961 $ 1,068 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 receivable 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 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 their 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 Other current assets in the accompanying Consolidated Balance Sheets and were $48 and $61 at December 31, 2016 and 2015 , respectively. Under most of the agreements, 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 receivables sold and derecognized from our balance sheet, $531 and $524 remained uncollected as of December 31, 2016 and 2015 , respectively. Accounts receivable sales were as follows: Year Ended December 31, 2016 2015 2014 Accounts receivable sales $ 2,267 $ 2,142 $ 2,563 Deferred proceeds 233 247 387 Loss on sale of accounts receivable 16 13 15 Estimated increase (decrease) to operating cash flows (1) 30 62 (64 ) _____________ (1) Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. Finance Receivables, Net Finance receivables include sales-type leases, direct financing leases and installment loans arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets. Finance receivables, net were as follows: December 31, 2016 2015 Gross receivables $ 4,380 $ 4,683 Unearned income (526 ) (577 ) Subtotal 3,854 4,106 Residual values — — Allowance for doubtful accounts (110 ) (118 ) Finance Receivables, Net 3,744 3,988 Less: Billed portion of finance receivables, net 90 97 Less: Current portion of finance receivables not billed, net 1,256 1,315 Finance Receivables Due After One Year, Net $ 2,398 $ 2,576 Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90 ): 2017 2018 2019 2020 2021 Thereafter Total $ 1,628 $ 1,225 $ 855 $ 485 $ 175 $ 12 $ 4,380 Sale of Finance Receivables In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of the associated lease receivables. There have been no transfers or sales of finance receivables since 2013. We continue to service the sold receivables and record servicing fee income over the expected life of the associated receivables. The following is a summary of our prior sales activity: Year Ended December 31, 2013 2012 Net carrying value (NCV) sold $ 676 $ 682 Allowance included in NCV 17 18 Cash proceeds received 635 630 Beneficial interests received 86 101 The principal value of the finance receivables derecognized from our balance sheet was $76 and $238 at December 31, 2016 and 2015 , respectively (sales value of approximately $81 and $256 , respectively). Summary Finance Receivable Sales 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 which were $24 and $38 at December 31, 2016 and 2015 , respectively, and are included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Beneficial interests of $13 and $30 at December 31, 2016 and 2015 , respectively, are held by the bankruptcy-remote subsidiaries 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 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 their weighted average lives of less than two years. The net impact from the sales of finance receivables on operating cash flows is summarized below: 2016 2015 2014 2013/2012 Net cash received for sales of finance receivables (1) $ — $ — $ — $ 1,256 Impact from prior sales of finance receivables (2) (186 ) (342 ) (527 ) (437 ) Collections on beneficial interests 30 56 94 58 Estimated (Decrease) Increase to Operating Cash Flows $ (156 ) $ (286 ) $ (433 ) $ 877 _____________ (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 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. Customer credit limits are based upon an initial evaluation of the customer's credit quality and we adjust that limit accordingly based upon ongoing credit assessments of the customer, including payment history and changes in credit quality. The allowance for doubtful accounts and provision for credit losses represents an estimate of the losses expected to be incurred from the Company's finance receivable portfolio. The level of the allowance is determined on a collective basis by applying projected loss rates to our different portfolios by country, which represent our portfolio segments. This is the level at which we develop and document our methodology to determine the allowance for credit losses. This loss rate is primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current economic conditions as well as delinquency trends, resolution rates, the aging of receivables, credit quality indicators and the financial health of specific customer classes or groups. The allowance for doubtful finance receivables is inherently more difficult to estimate than the allowance for trade accounts receivable because the underlying lease portfolio has an average maturity, at any time, of approximately two to three years and contains past due billed amounts, as well as unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for doubtful accounts. The identification of account-specific exposure is not a significant factor in establishing the allowance for doubtful finance receivables. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented. Since our allowance for doubtful finance receivables is determined by country, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of those countries/regions. Loss rates in the U.S. remained steady and did not change significantly during 2016 and 2015 . Since Europe is comprised of various countries and regional economies, the risk profile within our European portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in Europe were $15 in 2016 as compared to $17 in 2015, reflecting continued stabilization of Europe from the credit issues that began back in 2011. 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 (2) Total Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 11 6 10 1 28 Charge-offs (8 ) (10 ) (17 ) (1 ) (36 ) Recoveries and other (3) — 1 (6 ) — (5 ) Balance at December 31, 2015 $ 54 $ 17 $ 45 $ 2 $ 118 Provision 10 3 11 — 24 Charge-offs (12 ) (8 ) (15 ) — (35 ) Recoveries and other (3) 3 4 (4 ) — 3 Balance at December 31, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Finance Receivables Collectively Evaluated for Impairment: December 31, 2015 (4) $ 2,174 $ 365 $ 1,509 $ 58 $ 4,106 December 31, 2016 (4) $ 2,138 $ 378 $ 1,286 $ 52 $ 3,854 _____________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) 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. (4) Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015 , respectively. In the U.S. and Canada, customers are further evaluated or segregated by class based on industry sector. The primary customer classes are Finance & Other Services, Government & Education; Graphic Arts; Industrial; Healthcare and Other. In Europe, customers are further grouped by class based on the country or region of the customer. The primary customer classes include the U.K./Ireland, France and the following European regions - Central, Nordic and Southern. These groupings or classes are used to understand the nature and extent of our exposure to credit risk arising from finance receivables. 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 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 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 with 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, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation 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: December 31, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Finance and other services $ 181 $ 342 $ 95 $ 618 $ 195 $ 285 $ 91 $ 571 Government and education 543 57 8 608 575 48 7 630 Graphic arts 138 102 107 347 145 92 127 364 Industrial 82 78 24 184 89 62 22 173 Healthcare 79 47 17 143 90 46 19 155 Other 82 103 53 238 121 107 53 281 Total United States 1,105 729 304 2,138 1,215 640 319 2,174 Finance and other services 54 43 15 112 55 35 9 99 Government and education 52 6 2 60 59 7 2 68 Graphic arts 39 37 24 100 45 35 21 101 Industrial 21 13 6 40 23 12 3 38 Other 33 25 8 66 33 23 3 59 Total Canada 199 124 55 378 215 112 38 365 France 181 222 51 454 203 207 101 511 U.K/Ireland 189 63 1 253 235 91 3 329 Central (1) 182 148 19 349 206 186 25 417 Southern (2) 36 131 14 181 36 138 17 191 Nordic (3) 26 22 1 49 24 35 2 61 Total Europe 614 586 86 1,286 704 657 148 1,509 Other 35 15 2 52 41 16 1 58 Total $ 1,953 $ 1,454 $ 447 $ 3,854 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. The aging of our receivables portfolio is based upon the number of days an invoice is past due. Receivables that are more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance. We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed reasonably assured. The aging of our billed finance receivables is as follows: December 31, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordic (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 December 31, 2015 (4) Current 31-90 >90 Days Total Billed Unbilled Total >90 Days Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordic (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. (4) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Inventories and Equipment on Op
Inventories and Equipment on Operating Leases, Net | 12 Months Ended |
Dec. 31, 2016 | |
Inventories and Equipment on Operating Leases, Net [Abstract] | |
Inventories and Equipment on Operating Leases, Net | Inventories and Equipment on Operating Leases, Net The following is a summary of Inventories by major category: December 31, 2016 2015 Finished goods $ 713 $ 751 Work-in-process 47 51 Raw materials 81 99 Total Inventories $ 841 $ 901 The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term. Equipment on operating leases and the related accumulated depreciation were as follows: December 31, 2016 2015 Equipment on operating leases $ 1,468 $ 1,478 Accumulated depreciation (993 ) (983 ) Equipment on Operating Leases, Net $ 475 $ 495 Depreciable lives generally vary from three to four years consistent with our planned and historical usage of the equipment subject to operating leases. Our equipment operating lease terms vary, generally from one to three years. Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are: 2017 2018 2019 2020 2021 Thereafter $ 319 $ 221 $ 142 $ 76 $ 26 $ 3 Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2016 , 2015 and 2014 amounted to $132 , $139 and $149 , respectively. |
Land, Buildings, Equipment and
Land, Buildings, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2016 | |
Land, Buildings, Equipment and Software, Net [Abstract] | |
Land, Buildings, Equipment and Software, Net | Land, Buildings, Equipment and Software, Net Land, buildings and equipment, net were as follows: December 31, Estimated Useful Lives (Years) 2016 2015 Land $ 20 $ 21 Building and building equipment 25 to 50 911 919 Leasehold improvements Varies 219 244 Plant machinery 5 to 12 1,225 1,274 Office furniture and equipment 3 to 15 657 700 Other 4 to 20 70 63 Construction in progress 33 28 Subtotal 3,135 3,249 Accumulated depreciation (2,475 ) (2,532 ) Land, Buildings and Equipment, Net $ 660 $ 717 Depreciation expense and operating lease rent expense were as follows: Year Ended December 31, 2016 2015 2014 Depreciation expense $ 148 $ 151 $ 179 Operating lease expense 157 164 175 We lease buildings and equipment, substantially all of which are accounted for as operating leases. Capital leased assets were $31 and $39 at December 31, 2016 and 2015 , respectively. Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2016 were as follows: 2017 2018 2019 2020 2021 Thereafter $ 124 $ 94 $ 72 $ 53 $ 40 $ 71 Internal Use Software Year Ended December 31, Additions to: 2016 2015 2014 Internal use software $ 45 $ 64 $ 57 December 31, Capitalized costs, net: 2016 2015 Internal use software $ 218 $ 264 Useful lives of our internal use software generally vary from three to seven years. |
Investment in Affiliates, at Eq
Investment in Affiliates, at Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates, at Equity | Investment in Affiliates, at Equity Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows: December 31, 2016 2015 Fuji Xerox $ 1,313 $ 1,315 Other 75 67 Investments in Affiliates, at Equity $ 1,388 $ 1,382 Our equity in net income of our unconsolidated affiliates was as follows: Year Ended December 31, 2016 2015 2014 Fuji Xerox $ 108 $ 117 $ 147 Other 13 18 13 Total Equity in Net Income of Unconsolidated Affiliates $ 121 $ 135 $ 160 Fuji Xerox Fuji Xerox is headquartered in Tokyo and operates in Japan, China, Australia, New Zealand, Vietnam and other areas of the Pacific Rim. Our investment in Fuji Xerox of $1,313 at December 31, 2016 , differs from our implied 25% interest in the underlying net assets, or $1,406 , due primarily to our deferral of gains resulting from sales of assets by us to Fuji Xerox. Equity in net income of Fuji Xerox is affected by certain adjustments 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. Summarized financial information for Fuji Xerox is as follows: Year Ended December 31, 2016 2015 2014 Summary of Operations Revenues $ 10,161 $ 9,925 $ 11,112 Costs and expenses 9,486 9,198 10,242 Income before income taxes 675 727 870 Income tax expense 217 233 262 Net Income 458 494 608 Less: Net income - noncontrolling interests 7 7 4 Net Income - Fuji Xerox $ 451 $ 487 $ 604 Balance Sheet Assets: Current assets $ 4,464 $ 4,585 $ 4,801 Long-term assets 4,734 4,946 4,742 Total Assets $ 9,198 $ 9,531 $ 9,543 Liabilities and Equity: Current liabilities $ 2,679 $ 2,808 $ 2,982 Long-term debt 283 584 580 Other long-term liabilities 583 511 482 Noncontrolling interests 31 31 30 Fuji Xerox shareholders' equity 5,622 5,597 5,469 Total Liabilities and Equity $ 9,198 $ 9,531 $ 9,543 Yen/U.S. Dollar exchange rates used to translate are as follows: Financial Statement Exchange Basis 2016 2015 2014 Summary of Operations Weighted average rate 108.68 121.01 105.58 Balance Sheet Year-end rate 116.53 120.49 119.46 Transactions with Fuji Xerox We receive dividends from Fuji Xerox, which are reflected as a reduction in our investment. Additionally, we have a Technology Agreement with Fuji Xerox whereby we receive royalty payments for their use of our Xerox brand trademark, as well as rights to access our patent portfolio in exchange for access to their patent portfolio. These payments are included in Outsourcing, maintenance and rental revenues in the Consolidated Statements of (Loss) Income. We also have arrangements with Fuji Xerox whereby we purchase inventory from and sell inventory to Fuji Xerox. Pricing of the transactions under these arrangements is based upon terms the Company believes to be negotiated at arm's length. Our purchase commitments with Fuji Xerox are in the normal course of business and typically have a lead time of three months. In addition, we pay Fuji Xerox and they pay us for unique research and development costs. Transactions with Fuji Xerox were as follows: Year Ended December 31, 2016 2015 2014 Dividends received from Fuji Xerox $ 47 $ 51 $ 58 Royalty revenue earned 107 102 115 Inventory purchases from Fuji Xerox 1,641 1,728 1,831 Inventory sales to Fuji Xerox 80 108 120 R&D payments received from Fuji Xerox 1 1 1 R&D payments paid to Fuji Xerox 13 7 17 As of December 31, 2016 and 2015 , net amounts due to Fuji Xerox were $273 and $307 , respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill The following table presents the changes in the carrying amount of goodwill, by reportable segment: Document Technology Services Total Balance at December 31, 2014 $ 2,353 $ 1,668 $ 4,021 Foreign currency translation (38 ) (38 ) (76 ) Acquisitions: Other 6 — 6 Balance at December 31, 2015 $ 2,321 $ 1,630 $ 3,951 Foreign currency translation (93 ) (90 ) (183 ) Acquisitions: Imagetek 10 — 10 Other 9 — 9 Balance at December 31, 2016 $ 2,247 $ 1,540 $ 3,787 Intangible Assets, Net Net intangible assets were $290 at December 31, 2016 of which $247 relate to our Document Technology segment and $43 relate to our Services segment. Intangible assets were comprised of the following: December 31, 2016 December 31, 2015 Weighted Average Amortization Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 13 years $ 508 $ 410 $ 98 $ 509 $ 378 $ 131 Distribution network 25 years 123 84 39 123 79 44 Trademarks 20 years 250 107 143 248 95 153 Technology, patents and non-compete 13 years 15 5 10 19 7 12 Total Intangible Assets $ 896 $ 606 $ 290 $ 899 $ 559 $ 340 Amortization expense related to intangible assets was $58 , $60 , and $65 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Excluding the impact of additional acquisitions, amortization expense is expected to approximate $58 in 2017 , $57 in 2018, $39 in 2019 and $18 in each of the years 2020 and 2021. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges In 2016, in conjunction with our announcement of the planned Separation of the Company, we initiated a three -year Strategic Transformation program to accelerate our cost productivity initiatives. The program is expected to deliver productivity gains and cost savings in areas such as delivery, remote connectivity, sales productivity, pricing, design efficiency and supply chain optimization. The program is expected to include restructuring charges related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. In addition, we expect to incur asset impairment charges in connection with these restructuring actions for those assets that are sold, abandoned or made obsolete as a result of initiatives under the program. Beginning in 2016, all restructuring costs incurred were the result of actions and initiatives associated with the Strategic Transformation program. Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we recognize employee severance costs when they are both probable and reasonably estimable. A summary of our restructuring program activity during the three years ended December 31, 2016 is as follows: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2013 $ 96 $ 3 $ — $ 99 Restructuring provision 115 3 5 123 Reversals of prior accruals (16 ) — (1 ) (17 ) Net Current Period Charges (1) 99 3 4 106 Charges against reserve and currency (112 ) (5 ) (4 ) (121 ) Balance at December 31, 2014 $ 83 $ 1 $ — $ 84 Restructuring provision 35 2 7 44 Reversals of prior accruals (16 ) (1 ) — (17 ) Net Current Period Charges (1) 19 1 7 27 Charges against reserve and currency (84 ) (1 ) (7 ) (92 ) Balance at December 31, 2015 $ 18 $ 1 $ — $ 19 Restructuring provision 224 28 — 252 Reversals of prior accruals (16 ) (1 ) (5 ) (22 ) Net Current Period Charges (1) 208 27 (5 ) 230 Charges against reserve and currency (122 ) (5 ) 5 (122 ) Balance at December 31, 2016 $ 104 $ 23 $ — $ 127 _____________ (1) Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges. (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. The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows: Year Ended December 31, 2016 2015 2014 Charges against reserve $ (122 ) $ (92 ) $ (121 ) Asset impairments — 7 5 Effects of foreign currency and other non-cash items 4 6 6 Restructuring Cash Payments $ (118 ) $ (79 ) $ (110 ) The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment: Year Ended December 31, 2016 2015 2014 Document Technology $ 208 $ 15 $ 76 Services 25 4 16 Other (3 ) 8 14 Total Net Restructuring Charges $ 230 $ 27 $ 106 |
Supplementary Financial Informa
Supplementary Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information The components of Other assets and liabilities were as follows: December 31, 2016 2015 Other Current Assets Income taxes receivable $ 50 $ 12 Royalties, license fees and software maintenance 21 34 Restricted cash 92 84 Prepaid expenses 45 51 Derivative instruments 88 55 Deferred purchase price from sales of accounts receivables 48 61 Beneficial interests - sales of finance receivables 8 8 Advances and deposits 15 25 Other 125 128 Due from Conduent 127 — Total Other Current Assets $ 619 $ 458 Other Current Liabilities Income taxes payable $ 45 $ 28 Other taxes payable 78 76 Interest payable 55 73 Restructuring reserves 121 18 Derivative instruments 39 11 Product warranties 7 8 Dividends payable 91 85 Distributor and reseller rebates/commissions 120 106 Servicer liabilities 62 83 Other 290 227 Total Other Current Liabilities $ 908 $ 715 Other Long-term Assets Deferred taxes $ 1,475 $ 1,450 Income taxes receivable 14 9 Prepaid pension costs 17 22 Derivative instruments 4 7 Net investment in TRG 126 142 Internal use software, net 218 264 Product software, net 8 8 Restricted cash 87 72 Debt issuance costs, net 3 4 Customer contract costs, net 7 13 Beneficial interest - sales of finance receivables 16 30 Deferred compensation plan investments 15 13 Other 165 176 Total Other Long-term Assets $ 2,155 $ 2,210 Other Long-term Liabilities Deferred taxes $ 42 $ 51 Income taxes payable 16 49 Environmental reserves 9 11 Restructuring reserves 6 1 Other 120 126 Total Other Long-term Liabilities $ 193 $ 238 Restricted Cash As more fully discussed in Note 18 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. In addition, as more fully discussed in Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net, we continue to service the receivables sold under most of our receivable sale agreements. As servicer, we may collect cash related to sold receivables prior to year-end that will be remitted to the purchaser the following year. Since we are acting on behalf of the purchaser in our capacity as servicer, such cash collected is reported as restricted cash. Restricted cash amounts are classified in our Consolidated Balance Sheets based on when the cash will be contractually or judicially released. Restricted cash amounts were as follows: December 31, 2016 2015 Tax and labor litigation deposits in Brazil $ 85 $ 71 Escrow and cash collections related to receivable sales 62 83 Other restricted cash 32 2 Total Restricted Cash $ 179 $ 156 Net Investment in TRG At December 31, 2016 , our net investment in The Resolution Group (TRG) primarily consisted of a $140 performance-based instrument relating to the 1997 sale of TRG, net of remaining liabilities associated with our discontinued operations of $14 . The recovery of the performance-based instrument is dependent on the sufficiency of TRG's available cash flows, as guaranteed by TRG's ultimate parent, which are expected to be recovered in annual cash distributions through 2017. The performance-based instrument is pledged as security for our future funding obligations to our U.K. Pension Plan for salaried employees. Due from Conduent The balance Due from Conduent includes the following amounts: Due from\(to) Conduent December 31, 2016 Cash adjustment $ 161 Taxes payable (32 ) Other (2 ) Total Due from Conduent $ 127 The Cash adjustment primarily represents the final adjustment that was required to bring Conduent's cash balance to $225 at Separation, as provided for in the Separation Agreement. This amount was paid to Xerox in January 2017. The income tax payable represents the final adjustment for income tax payments between the two companies for their consolidated 2016 tax returns; which will be the last returns to be filed on a consolidated basis. The tax sharing between the two companies was based on a separate return basis; as if Conduent filed a separate tax return. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term borrowings were as follows: December 31, 2016 2015 Notes Payable $ 4 $ 3 Current maturities of long-term debt 1,007 959 Total Short-term Debt $ 1,011 $ 962 We classify our debt based on the contractual maturity dates of the underlying debt instruments or as of the earliest put date available to the debt holders. We defer costs associated with debt issuance over the applicable term, or to the first put date in the case of convertible debt or debt with a put feature. These costs are amortized as interest expense in our Consolidated Statements of (Loss) Income. Long-term debt was as follows: December 31, Stated Rate Weighted Average Interest Rates at December 31, 2016 (3) 2016 2015 Xerox Corporation Senior Notes due 2016 $ — $ 700 Notes due 2016 — 250 Senior Notes due 2017 (1) 6.75 % 6.83 % 500 500 Senior Notes due 2017 (1) 2.95 % 2.98 % 500 500 Notes due 2018 0.57 % 0.57 % 1 1 Senior Notes due 2018 6.35 % 6.37 % 1,000 1,000 Senior Notes due 2019 2.75 % 2.77 % 500 500 Senior Notes due 2019 5.63 % 5.66 % 650 650 Senior Notes due 2020 2.80 % 2.81 % 400 400 Senior Notes due 2020 3.50 % 3.70 % 400 400 Senior Notes due 2020 2.75 % 2.77 % 400 400 Senior Notes due 2021 4.50 % 5.39 % 1,062 1,062 Senior Notes due 2024 3.80 % 3.84 % 300 300 Senior Notes due 2035 4.80 % 4.84 % 250 250 Senior Notes due 2039 6.75 % 6.78 % 350 350 Subtotal - Xerox Corporation $ 6,313 $ 7,263 Subsidiary Companies Capital lease obligations 9.44 % 31 39 Other 0.34 % 1 1 Subtotal - Subsidiary Companies $ 32 $ 40 Principal debt balance $ 6,345 $ 7,303 Unamortized discount (43 ) (52 ) Debt issuance costs (21 ) (29 ) Fair value adjustments (2) Terminated swaps 27 47 Current swaps 4 7 Less: current maturities (1,007 ) (959 ) Total Long-term Debt $ 5,305 $ 6,317 _____________ (1) Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information. (2) Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. (3) Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows: 2017 (1) 2018 2019 2020 2021 Thereafter Total $ 1,007 $ 1,008 $ 1,156 $ 1,207 $ 1,067 $ 900 $ 6,345 _____________ (1) Quarterly long-term debt maturities from continuing operations for 2017 are $1,001 , $2 , $2 and $2 for the first, second, third and fourth quarters, respectively. Term Loan Facility On March 4, 2016, Xerox Corporation entered into a $1.0 billion Senior Unsecured Term Facility. The facility was fully drawn by April 1, 2016 and was required to be repaid upon completion of the Separation. Borrowings under the facility bore interest at a rate of LIBOR plus 1.50% and interest rates varied between 1.95% and 2.16% during 2016. The proceeds of the facility were used to repay maturing debt of $950 ($ 700 of 6.40% Senior Notes on March 15, 2016 and $ 250 of 7.20% Notes on April 1, 2016). As previously noted, this facility, which was required to be repaid upon completion of the Separation, was repaid in January 2017. Accordingly, the facility is excluded from Total Debt at December 31, 2016 and is reported in the Current Liabilities of discontinued operations at December 31, 2016. Interest expense associated with this borrowing incurred during 2016 is included in Loss from discontinued operations. Refer to Note 1- Basis of Presentation for information regarding the Company separation. Commercial Paper We have a private placement commercial paper (CP) program in the U.S. under which we may issue CP up to a maximum amount of $2.0 billion outstanding at any time. Aggregate CP and Credit Facility borrowings may not exceed $2.0 billion outstanding at any time. The maturities of the CP Notes will vary, but may not exceed 390 days from the date of issue. The CP Notes are sold at a discount from par or, alternatively, sold at par and bear interest at market rates. We had no CP outstanding at December 31, 2016 and 2015 . Credit Facility We have a $2.0 billion unsecured revolving Credit Facility with a group of lenders, which matures in 2019. The Credit Facility contains a $300 letter of credit sub-facility, and also includes an accordion feature that would allow us to increase (from time to time, with willing lenders) the overall size of the facility up to an aggregate amount not to exceed $2.75 billion. The Credit Facility provides a backstop to our $2.0 billion CP program. Proceeds from any borrowings under the Credit Facility can be used to provide working capital for the Company and its subsidiaries and for general corporate purposes. At December 31, 2016 we had no outstanding borrowings or letters of credit under the Credit Facility. The Credit Facility is available, without sublimit, to certain of our qualifying subsidiaries. Our obligations under the Credit Facility are unsecured and are not currently guaranteed by any of our subsidiaries. Any domestic subsidiary that guarantees more than $100 of Xerox Corporation debt must also guaranty our obligations under the Credit Facility. In the event that any of our subsidiaries borrows under the Credit Facility, its borrowings thereunder would be guaranteed by us. Borrowings under the Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in our Credit Facility agreement, plus a spread that varies between 0.000% and 0.45% depending on our credit rating at the time of borrowing, or (b) LIBOR plus an all-in spread that varies between 0.90% and 1.45% depending on our credit rating at the time of borrowing. Based on our credit rating as of December 31, 2016 , the applicable all-in spreads for the Base Rate and LIBOR borrowing were 0.30% and 1.30% , respectively. An annual facility fee is payable to each lender in the Credit Facility at a rate that varies between 0.10% and 0.30% depending on our credit rating. Based on our credit rating as of December 31, 2016 , the applicable rate is 0.20% . The Credit Facility contains various conditions to borrowing and affirmative, negative and financial maintenance covenants. Certain of the more significant covenants are summarized below: (a) Maximum leverage ratio (a quarterly test that is calculated as principal debt divided by consolidated EBITDA, as defined) of 3.75 x. (b) Minimum interest coverage ratio (a quarterly test that is calculated as consolidated EBITDA divided by consolidated interest expense) may not be less than 3.00 x. (c) Limitations on (i) liens of Xerox and certain of our subsidiaries securing debt, (ii) certain fundamental changes to corporate structure, (iii) changes in nature of business and (iv) limitations on debt incurred by certain subsidiaries. The Credit Facility also contains various events of default, the occurrence of which could result in termination of the lenders' commitments to lend and the acceleration of all our obligations under the Credit Facility. These events of default include, without limitation: (i) payment defaults, (ii) breaches of covenants under the Credit Facility (certain of which breaches do not have any grace period), (iii) cross-defaults and acceleration to certain of our other obligations and (iv) a change of control of Xerox. Interest Interest paid on our short-term and long-term debt amounted to $352 , $365 and $400 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Year Ended December 31, 2016 2015 2014 Interest paid - continuing operations $ 332 $ 356 $ 387 Interest paid - discontinued operations 20 9 13 Total interest paid on debt $ 352 $ 365 $ 400 Interest expense and interest income was as follows: Year Ended December 31, 2016 2015 2014 Interest expense (1) $ 309 $ 346 $ 366 Interest income (2) 330 352 396 _____________ (1) Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income. (2) Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income. Equipment financing interest is determined based on an estimated cost of funds, applied against the estimated level of debt required to support our net finance receivables. The estimated cost of funds is based on the interest cost associated with actual borrowings determined to be in support of the leasing business. The estimated level of debt continues to be based on an assumed 7 to 1 leverage ratio of debt/equity as compared to our average finance receivable balance during the applicable period. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including interest rate swap agreements, foreign currency spot, forward and swap contracts and net purchased foreign currency options to manage interest rate and foreign currency exposures. Our primary foreign currency market exposures include the Japanese Yen, Euro and U.K. Pound Sterling. The fair market values of all our derivative contracts change with fluctuations in interest rates and/or currency exchange rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities. We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with our derivative instruments because these transactions are executed with a diversified group of major financial institutions. Further, our policy is to deal only with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Interest Rate Risk Management We 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. Terminated Swaps During the period from 2004 to 2011, we early terminated several interest rate swaps that were designated as fair value hedges of certain debt instruments. The associated net fair value adjustments to the debt instruments are being amortized to interest expense over the remaining term of the related notes. In 2016 , 2015 and 2014 , the amortization of these fair value adjustments reduced interest expense by $19 , $22 and $31 , respectively, and we expect to record a net decrease in interest expense of $27 in future years through 2018. Fair Value Hedges As of December 31, 2016 and 2015 , pay variable/received fixed interest rate swaps with notional amounts of $300 and $300 , respectively, and net asset fair value of $4 and $7 , respectively, were designated and accounted for as fair value hedges. The swaps were structured to hedge the fair value of related debt by converting them from fixed rate instruments to variable rate instruments. No ineffective portion was recorded to earnings during 2016 or 2015. The following is a summary of our fair value hedges at December 31, 2016 : Debt Instrument Year First Designated Notional Amount Net Fair Value Weighted Average Interest Rate Paid Interest Rate Received Basis Maturity Senior Note 2021 2014 $ 300 $ 4 2.60 % 4.50 % Libor 2021 Foreign Exchange Risk Management As a global company, we are exposed to foreign currency exchange rate fluctuations in the normal course of our business. As a part of our foreign exchange risk management strategy, we use derivative instruments, primarily forward contracts and purchased option contracts, to hedge the following foreign currency exposures, thereby reducing volatility of earnings or protecting fair values of assets and liabilities: • Foreign currency-denominated assets and liabilities • Forecasted purchases, and sales in foreign currency At December 31, 2016 , we had outstanding forward exchange and purchased option contracts with gross notional values of $3,149 , which is typical of the amounts that are normally outstanding at any point during the year. Approximately 85% of these contracts mature within three months, 11% in three to six months and 4% in six to twelve months. The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2016 : Currencies Hedged (Buy/Sell) Gross Notional Value Fair Value Asset (Liability) (1) Euro/U.K. Pound Sterling $ 1,321 $ 22 Japanese Yen/U.S. Dollar 389 (27 ) U.S. Dollar/U.K. Pound Sterling 268 41 Japanese Yen/Euro 261 (6 ) U.S. Dollar/Euro 210 6 Canadian Dollar/U.K. Pound Sterling 169 14 Swiss Franc/Euro 98 — U.K. Pound Sterling/Euro 98 (1 ) U.K. Pound Sterling/U.S. Dollar 77 (1 ) Euro/Japanese Yen 26 — Euro/Mexican Peso 25 2 All Other 207 (1 ) Total Foreign Exchange Hedging $ 3,149 $ 49 ____________ (1) Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016 . 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 Consolidated Statements of (Loss) 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) asset fair value of these contracts were $(20) and $1 as of December 31, 2016 and December 31, 2015 , respectively. Summary of Derivative Instruments Fair Value The following table provides a summary of the fair value amounts of our derivative instruments: December 31, Designation of Derivatives Balance Sheet Location 2016 2015 Derivatives Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 6 $ 4 Other current liabilities (26 ) (2 ) Foreign currency options Other current assets — — Other current liabilities — (1 ) Interest rate swaps Other long-term assets 4 7 Net Designated Derivative (Liability) Asset $ (16 ) $ 8 Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 82 $ 51 Other current liabilities (13 ) (8 ) Net Undesignated Derivative Asset $ 69 $ 43 Summary of Derivatives Total Derivative Assets $ 92 $ 62 Total Derivative Liabilities (39 ) (11 ) Net Derivative Asset $ 53 $ 51 Summary of Derivative Instruments Gains (Losses) Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains and (losses). Designated Derivative Instruments Gains (Losses) The following tables provide a summary of gains (losses) on derivative instruments: Year Ended December 31, Derivatives in Fair Value Relationships Location of Gain (Loss) Recognized in Income Derivative Gain (Loss) Recognized in Income Hedged Item Gain (Loss) Recognized in Income 2016 2015 2014 2016 2015 2014 Interest rate contracts Interest expense $ (3 ) $ 2 $ 5 $ 3 $ (2 ) $ (5 ) Year Ended December 31, Derivatives in Cash Flow Hedging Relationships Derivative Gain (Loss) Recognized in OCI (Effective Portion) Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI to Income (Effective Portion) 2016 2015 2014 2016 2015 2014 Foreign exchange contracts – forwards/options $ 20 $ 17 $ (20 ) Cost of sales $ 42 $ (23 ) $ (39 ) No amount of ineffectiveness was recorded in the Consolidated Statements of (Loss) Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) were 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. As of December 31, 2016 , net after-tax losses of $13 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 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 losses on non-designated derivative instruments: Year Ended December 31, Derivatives NOT Designated as Hedging Instruments Location of Derivative Loss 2016 2015 2014 Foreign exchange contracts – forwards Other expense – Currency gains (losses), net $ 172 $ 17 $ (9 ) During the three years ended December 31, 2016 , we recorded Currency losses, net of $13 , $2 and $6 , respectively. Currency (losses) gains, net includes 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 | 12 Months Ended |
Dec. 31, 2016 | |
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 fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. As of December 31, 2016 2015 Assets Foreign exchange contracts - forwards $ 88 $ 55 Interest rate swaps 4 7 Deferred compensation investments in mutual funds 15 13 Total $ 107 $ 75 Liabilities Foreign exchange contracts - forwards $ 39 $ 10 Foreign currency options — 1 Deferred compensation plan liabilities 17 15 Total $ 56 $ 26 We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2. Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections. Summary of Other Financial Assets and Liabilities The estimated fair values of our other financial assets and liabilities were as follows: December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 2,223 $ 2,223 $ 1,228 $ 1,228 Accounts receivable, net 961 961 1,068 1,068 Short-term debt 1,011 1,015 962 954 Long-term debt 5,305 5,438 6,317 6,358 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 the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans. Over the past several years, where legally possible, we have amended our major defined benefit pension plans to freeze current benefits and eliminate benefits accruals for future service, including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. The freeze of current benefits is the primary driver of the reduction in pension service costs since 2012. In certain Non-U.S. plans we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. The Netherlands defined benefit pension plan has also been amended to reflect the Company's ability to reduce the indexation of future pension benefits within the plan in scenarios when the returns on plan assets are insufficient to cover that indexation. Prior to the freeze of current benefits, most of our defined benefit pension plans generally provided employees a benefit, depending on eligibility, calculated under a highest average pay and years of service formula. Our primary domestic defined benefit pension plans provided a benefit at the greater of (i) the highest average pay and years of service formula, (ii) the benefit calculated under a formula that provides for the accumulation of salary and interest credits during an employee's work life or (iii) the individual account balance from the Company's prior defined contribution plan (Transitional Retirement Account or TRA). Pension plan assets consist of both defined benefit plan assets and assets legally restricted to the TRA accounts. The combined investment results for these plans, along with the results for our other defined benefit plans, are shown below in the “actual return on plan assets” caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost. Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation, January 1 $ 4,126 $ 4,642 $ 6,308 $ 6,962 $ 855 $ 937 Service cost 4 4 31 32 6 7 Interest cost 184 80 195 203 32 34 Plan participants' contributions — — 4 4 1 14 Actuarial loss (gain) 114 (223 ) 636 (94 ) (75 ) (4 ) Currency exchange rate changes — — (774 ) (524 ) 4 (25 ) Plan Amendments/Curtailments — — — (17 ) — (31 ) Benefits paid/settlements (275 ) (377 ) (234 ) (255 ) (62 ) (77 ) Other 8 — (6 ) (3 ) — — Benefit Obligation, December 31 $ 4,161 $ 4,126 $ 6,160 $ 6,308 $ 761 $ 855 Change in Plan Assets: Fair value of plan assets, January 1 $ 2,806 $ 3,081 $ 5,353 $ 5,930 $ — $ — Actual return on plan assets 220 (70 ) 804 (20 ) — — Employer contributions 24 173 154 128 61 63 Plan participants' contributions — — 4 4 1 14 Currency exchange rate changes — — (694 ) (428 ) — — Benefits paid/settlements (275 ) (377 ) (234 ) (255 ) (62 ) (77 ) Other (1 ) (1 ) (3 ) (6 ) — — Fair Value of Plan Assets, December 31 $ 2,774 $ 2,806 $ 5,384 $ 5,353 $ — $ — Net Funded Status at December 31 (1) $ (1,387 ) $ (1,320 ) $ (776 ) $ (955 ) $ (761 ) $ (855 ) Amounts Recognized in the Consolidated Balance Sheets: Other long-term assets $ — $ — $ 17 $ 22 $ — $ — Accrued compensation and benefit costs (24 ) (23 ) (22 ) (26 ) (63 ) (68 ) Pension and other benefit liabilities (1,363 ) (1,297 ) (771 ) (951 ) — — Post-retirement medical benefits — — — — (698 ) (787 ) Net Amounts Recognized $ (1,387 ) $ (1,320 ) $ (776 ) $ (955 ) $ (761 ) $ (855 ) _____________ (1) Includes under-funded and un-funded plans. Benefit plans pre-tax amounts recognized in AOCL at December 31: Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2016 2015 2016 2015 Net actuarial loss $ 1,094 $ 1,101 $ 1,741 $ 1,966 $ 37 $ 112 Prior service credit (9 ) (11 ) (28 ) (33 ) (29 ) (34 ) Total Pre-tax Loss $ 1,085 $ 1,090 $ 1,713 $ 1,933 $ 8 $ 78 Accumulated Benefit Obligation $ 4,161 $ 4,126 $ 5,931 $ 6,068 Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below: December 31, 2016 December 31, 2015 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Underfunded Plans: U.S. $ 3,820 $ 3,820 $ 2,774 $ 3,781 $ 3,781 $ 2,806 Non U.S. 4,535 4,368 4,194 4,803 4,644 4,300 Unfunded Plans: U.S. $ 341 $ 341 $ — $ 345 $ 345 $ — Non U.S. 445 436 — 421 413 — Total Underfunded and Unfunded Plans: U.S. $ 4,161 $ 4,161 $ 2,774 $ 4,126 $ 4,126 $ 2,806 Non U.S. 4,980 4,804 4,194 5,224 5,057 4,300 Total $ 9,141 $ 8,965 $ 6,968 $ 9,350 $ 9,183 $ 7,106 Our pension plan assets and benefit obligations at December 31, 2016 were as follows: Fair Value of Pension Plan Assets Pension Benefit Obligations Net Funded Status U.S. funded $ 2,774 $ 3,820 $ (1,046 ) U.S. unfunded — 341 (341 ) Total U.S. $ 2,774 $ 4,161 $ (1,387 ) U.K. 3,445 3,679 (234 ) Canada 661 700 (39 ) Other 1,278 1,781 (503 ) Total $ 8,158 $ 10,321 $ (2,163 ) The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows: Year Ended December 31, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of Net Periodic Benefit Costs: Service cost $ 4 $ 4 $ 4 $ 31 $ 32 $ 31 $ 6 $ 7 $ 9 Interest cost (1) 184 80 278 195 203 262 32 34 36 Expected return on plan assets (2) (190 ) (79 ) (287 ) (249 ) (284 ) (332 ) — — — Recognized net actuarial loss 26 24 17 65 70 54 2 1 1 Amortization of prior service credit (2 ) (2 ) (2 ) (3 ) 4 (1 ) (5 ) (18 ) (43 ) Recognized settlement loss 65 88 51 1 1 — — — — Recognized curtailment gain — — — — — (1 ) — (22 ) — Defined Benefit Plans 87 115 61 40 26 13 35 2 3 Defined contribution plans 30 33 31 31 33 40 n/a n/a n/a Net Periodic Benefit Cost 117 148 92 71 59 53 35 2 3 Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: Net actuarial (gain) loss 84 (74 ) 688 76 204 447 (75 ) (4 ) 119 Prior service credit — — — — (16 ) (6 ) — (32 ) — Amortization of net actuarial loss (92 ) (112 ) (68 ) (66 ) (71 ) (54 ) (2 ) (1 ) (1 ) Amortization of net prior service credit 2 2 2 3 (4 ) 1 5 18 43 Curtailment gain — — — — — 2 — 22 — Total Recognized in Other Comprehensive Income (6 ) (184 ) 622 13 113 390 (72 ) 3 161 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 111 $ (36 ) $ 714 $ 84 $ 172 $ 443 $ (37 ) $ 5 $ 164 _____________ (1) Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296 , $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83 , $(25) and $182 for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Expected return on plan assets includes expected investment income on non-TRA assets of $356 , $388 and $437 and actual investment income (loss) on TRA assets of $83 , $(25) and $182 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The net actuarial loss and prior service credit for the defined benefit pension plans that will be amortized from Accumulated other comprehensive (loss) income into net periodic benefit cost over the next fiscal year are $(101) and $5 , respectively, excluding amounts that may be recognized through settlement losses. The net actuarial loss and prior service credit for the retiree health benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $0 and $4 , respectively. Plan Amendments Retiree-Health Plan In 2015 we amended our U.S. Retiree Health Plan to eliminate future benefit accruals for active salaried employees effective December 31, 2015. There was no change in benefits for union employees or existing retirees or employees that retired before December 31, 2015. As a result of this plan amendment, we recognized a pre-tax curtailment gain of $22 in 2015. The gain represented the recognition of deferred gains from other prior-year amendments (“prior service credits”) as a result of the discontinuation of the future benefit or service accrual period for active salaried employees. Plan Assets Current Allocation As of the 2016 and 2015 measurement dates, the global pension plan assets were $8,158 and $8,159 , respectively. These assets were invested among several asset classes. The following tables present the defined benefit plans assets measured at fair value and the basis for that measurement. December 31, 2016 U.S. Plans Non-U.S. Plans Asset Class Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Cash and cash equivalents $ — $ — $ — $ — $ — $ 544 $ — $ — $ — $ 544 Equity Securities: U.S. 320 — — 68 388 266 42 — — 308 International 258 — — 160 418 358 722 — 127 1,207 Fixed Income Securities: U.S. treasury securities — 233 — — 233 — 44 — — 44 Debt security issued by government agency — 65 — — 65 — 1,654 — — 1,654 Corporate bonds — 1,052 — — 1,052 — 618 — — 618 Asset backed securities — 2 — — 2 — 1 — — 1 Derivatives — (38 ) — — (38 ) — 64 — — 64 Real estate 36 — 12 34 82 — — 121 168 289 Private equity/venture capital — — — 490 490 — 60 6 425 491 Guaranteed insurance contracts — — — — — — — 104 — 104 Other (2) 15 — — 67 82 6 54 — — 60 Total Fair Value of Plan Assets $ 629 $ 1,314 $ 12 $ 819 $ 2,774 $ 1,174 $ 3,259 $ 231 $ 720 $ 5,384 _____________ (1) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy. (2) Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. December 31, 2015 U.S. Plans Non-U.S. Plans Asset Class Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Cash and cash equivalents $ 171 $ — $ — $ — $ 171 $ 577 $ — $ — $ — $ 577 Equity Securities: U.S. 380 — — 20 400 200 38 — — 238 International 287 1 — 157 445 1,011 40 — 112 1,163 Fixed Income Securities: — U.S. treasury securities — 216 — — 216 — 48 — — 48 Debt security issued by government agency — 156 — — 156 3 1,599 — — 1,602 Corporate bonds — 913 — — 913 3 692 — — 695 Asset backed securities — 2 — — 2 — 1 — — 1 Derivatives — (8 ) — — (8 ) — 5 — — 5 Real estate 42 — 17 39 98 — — 145 154 299 Private equity/venture capital — — — 499 499 — 66 4 480 550 Guaranteed insurance contracts — — — — — — — 120 — 120 Other (2) (103 ) (1 ) — 18 (86 ) 5 50 — — 55 Total Fair Value of Plan Assets $ 777 $ 1,279 $ 17 $ 733 $ 2,806 $ 1,799 $ 2,539 $ 269 $ 746 $ 5,353 _____________ (1) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (2) Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end. The following tables represents a roll-forward of the defined benefit plans assets measured at fair value using significant unobservable inputs (Level 3 assets): U.S. Non-U.S. Real Estate Real Estate Private Equity/Venture Capital Guaranteed Insurance Contracts Total Balance at December 31, 2014 (1) $ 22 $ 147 $ 4 $ 128 $ 279 Purchases — — — 19 19 Sales (15 ) — — (21 ) (21 ) Realized (losses) gains 1 — — 6 6 Unrealized gains (losses) 9 9 1 1 11 Currency translation — (11 ) (1 ) (13 ) (25 ) Balance at December 31, 2015 $ 17 $ 145 $ 4 $ 120 $ 269 Purchases — 1 2 2 5 Sales (3 ) (13 ) (1 ) (12 ) (26 ) Realized gains (losses) — 6 — 1 7 Unrealized gains (losses) (2 ) (5 ) (4 ) (3 ) (12 ) Currency translation — (13 ) 5 (4 ) (12 ) Balance at December 31, 2016 $ 12 $ 121 $ 6 $ 104 $ 231 _____________ (1) Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient. Level 3 Valuation Method Our primary Level 3 assets are Real Estate and Private Equity/Venture Capital investments. The fair value of our real estate investment funds are based on the Net Asset Value (NAV) of our ownership interest in the funds. NAV information is received from the investment advisers and is primarily derived from third-party real estate appraisals for the properties owned. The fair value for our private equity/venture capital partnership investments are based on our share of the estimated fair values of the underlying investments held by these partnerships as reported (or expected to be reported) in their audited financial statements. The valuation techniques and inputs for our Level 3 assets have been consistently applied for all periods presented. Investment Strategy The target asset allocations for our worldwide defined benefit pension plans were: 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Equity investments 30% 28% 34% 28% Fixed income investments 48% 45% 43% 48% Real estate 6% 5% 6% 6% Private equity 8% 9% 9% 10% Other 8% 13% 8% 8% Total Investment Strategy 100% 100% 100% 100% We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. The intent of this strategy is to minimize plan expenses by exceeding the interest growth in long-term plan liabilities. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. This consideration involves the use of long-term measures that address both return and risk. The investment portfolio contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations. Other assets such as real estate, private equity, and hedge funds are used to improve portfolio diversification. Derivatives may be used to hedge market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Investment risks and returns are measured and monitored on an ongoing basis through annual liability measurements and quarterly investment portfolio reviews. Expected Long-term Rate of Return We employ a “building block” approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term relationships between equities and fixed income are assessed. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established giving consideration to investment diversification and rebalancing. Peer data and historical returns are reviewed periodically to assess reasonableness and appropriateness. Contributions The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Year Ended December 31, 2016 Estimated 2017 U.S. Plans $ 24 $ 169 Non-U.S. Plans 154 181 Total $ 178 $ 350 Retiree Health $ 61 $ 63 The 2016 pension plan contributions did not include any contributions for our domestic tax-qualified defined benefit plans because none were required to meet the minimum funding requirements. The 2017 expected pension plan contributions include $145 for our domestic tax-qualified defined benefit plans, comprised of $15 to meet the minimum funding requirements and $130 of additional voluntary contributions. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: Pension Benefits U.S. Non-U.S. Total Retiree Health 2017 $ 852 $ 210 $ 1,062 $ 63 2018 227 216 443 64 2019 223 222 445 62 2020 225 228 453 61 2021 296 237 533 59 Years 2022-2026 1,433 1,281 2,714 261 Assumptions Weighted-average assumptions used to determine benefit obligations at the plan measurement dates: Pension Benefits 2016 2015 2014 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.0 % 2.5 % 4.3 % 3.3 % 3.9 % 3.1 % Rate of compensation increase 0.2 % 2.6 % 0.2 % 2.7 % 0.2 % 2.6 % Retiree Health 2016 2015 2014 Discount rate 3.9 % 4.1 % 3.8 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Pension Benefits 2017 2016 2015 2014 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.0 % 2.5 % 4.3 % 3.3 % 3.9 % 3.1 % 4.8 % 4.2 % Expected return on plan assets 7.0 % 4.1 % 7.5 % 4.8 % 7.5 % 5.2 % 7.8 % 6.1 % Rate of compensation increase 0.2 % 2.6 % 0.2 % 2.7 % 0.2 % 2.6 % 0.2 % 2.6 % Retiree Health 2017 2016 2015 2014 Discount rate 3.9 % 4.1 % 3.8 % 4.5 % _____________ Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded . Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits. Assumed health care cost trend rates were as follows: December 31, 2016 2015 Health care cost trend rate assumed for next year 7.2 % 7.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.8 % 4.9 % Year that the rate reaches the ultimate trend rate 2026 2026 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1% increase 1% decrease Effect on total service and interest cost components $ 2 $ (2 ) Effect on post-retirement benefit obligation 53 (46 ) Defined Contribution Plans We have post-retirement savings and investment plans in several countries, including the U.S., U.K. and Canada. In many instances, employees from those defined benefit pension plans that have been amended to freeze future service accruals were transitioned to an enhanced defined contribution plan. In these plans employees are allowed to contribute a portion of their salaries and bonuses to the plans, and we match a portion of the employee contributions. We recorded charges related to our defined contribution plans of $61 in 2016 , $66 in 2015 and $71 in 2014 . |
Income and Other Taxes
Income and Other Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes Income before income taxes (pre-tax income) from continuing operations was as follows: Year Ended December 31, 2016 2015 2014 Domestic income $ 415 $ 613 $ 635 Foreign income 153 311 455 Income Before Income Taxes $ 568 $ 924 $ 1,090 (Benefit) provision for income taxes from continuing operations were as follows: Year Ended December 31, 2016 2015 2014 Federal Income Taxes Current $ (15 ) $ (225 ) $ (58 ) Deferred (4 ) 300 150 Foreign Income Taxes Current 71 73 83 Deferred (13 ) 7 (16 ) State Income Taxes Current 15 (38 ) 21 Deferred 8 76 18 Total (Benefit) Provision $ 62 $ 193 $ 198 A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows: Year Ended December 31, 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Nondeductible expenses 2.9 % 1.1 % 1.3 % Effect of tax law changes 1.2 % (1.0 )% (5.2 )% Change in valuation allowance for deferred tax assets (1.4 )% (1.6 )% (1.4 )% State taxes, net of federal benefit 3.0 % 2.2 % 2.0 % Audit and other tax return adjustments (4.1 )% 1.3 % (3.0 )% Tax-exempt income, credits and incentives (4.0 )% (1.8 )% (1.9 )% Foreign rate differential adjusted for U.S. taxation of foreign profits (1) (22.6 )% (15.3 )% (9.0 )% Other 0.9 % 1.0 % 0.4 % Effective Income Tax Rate 10.9 % 20.9 % 18.2 % _____________ (1) The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. On a consolidated basis, including discontinued operations, we paid a total of $130 , $138 and $121 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2016 , respectively. Total income tax expense (benefit) was allocated as follows: Year Ended December 31, 2016 2015 2014 Pre-tax income $ 62 $ 193 $ 198 Discontinued operations (1) (250 ) (134 ) 23 Common shareholders' equity: Changes in defined benefit plans 15 59 (408 ) Stock option and incentive plans, net — (18 ) (18 ) Cash flow hedges (8 ) 15 — Translation adjustments 2 — (2 ) Total Income Tax Expense (Benefit) $ (179 ) $ 115 $ (207 ) _____________ (1) Refer to Note 4 - Divestitures for additional information regarding discontinued operations. Unrecognized Tax Benefits and Audit Resolutions We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Each period, we assess uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more-likely-than-not recognition threshold. Where we have determined that our tax return filing position does not satisfy the more likely than not recognition threshold, we have recorded no tax benefits. We are also subject to ongoing tax examinations in numerous jurisdictions due to the extensive geographical scope of our operations. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. As of December 31, 2016 , we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance at January 1 $ 222 $ 207 $ 225 Additions (Reductions) related to current year (9 ) 36 12 Additions related to prior years positions — — 9 Reductions related to prior years positions (31 ) (5 ) (23 ) Settlements with taxing authorities (1) — (6 ) (8 ) Reductions related to lapse of statute of limitations (2 ) (9 ) (6 ) Currency (2 ) (1 ) (2 ) Tax Positions assumed in Conduent Separation (13 ) — — Balance at December 31 $ 165 $ 222 $ 207 _____________ (1) Majority of settlements did not result in the utilization of cash. Included in the balances at December 31, 2016 , 2015 and 2014 are $5 , $9 and $12 , respectively, of tax positions that are highly certain of realizability but for which there is uncertainty about the timing or that they may be reduced through an indirect benefit from other taxing jurisdictions. Because of the impact of deferred tax accounting, other than for the possible incurrence of interest and penalties, the disallowance of these positions would not affect the annual effective tax rate. Within income tax expense, we recognize interest and penalties accrued on unrecognized tax benefits, as well as interest received from favorable settlements. We had $10 , $2 and $3 accrued for the payment of interest and penalties associated with unrecognized tax benefits at December 31, 2016 , 2015 and 2014 , respectively. In the U.S., we are no longer subject to U.S. federal income tax examinations for years before 2012. With respect to our major foreign jurisdictions, we are no longer subject to tax examinations by tax authorities for years before 2003. Deferred Income Taxes We have not provided deferred taxes on approximately $7.0 billion of undistributed earnings of foreign subsidiaries and other foreign investments carried at equity at December 31, 2016 , as such undistributed earnings have been determined to be indefinitely reinvested and we currently do not plan to initiate any action that would precipitate a deferred tax impact. We do not believe it is practical to calculate the potential deferred tax impact, as there is a significant amount of uncertainty with respect to determining the amount of foreign tax credits as well as any additional local withholding tax and other indirect tax consequences that may arise from the distribution of these earnings. In addition, because such earnings have been indefinitely reinvested in our foreign operations, repatriation would require liquidation of those investments or a recapitalization of our foreign subsidiaries, the impacts and effects of which are not readily determinable. The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows: December 31, 2016 2015 Deferred Tax Assets Research and development $ 289 $ 370 Post-retirement medical benefits 276 311 Net operating losses 407 367 Operating reserves, accruals and deferrals 190 171 Tax credit carryforwards 751 666 Deferred compensation 197 167 Pension 539 553 Other 81 138 Subtotal 2,730 2,743 Valuation allowance (416 ) (383 ) Total $ 2,314 $ 2,360 Deferred Tax Liabilities Unearned income and installment sales $ 633 $ 705 Intangibles and goodwill 200 208 Other 48 48 Total $ 881 $ 961 Total Deferred Taxes, Net $ 1,433 $ 1,399 The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more-likely-than-not, be realized in the future. The net change in the total valuation allowance for the years ended December 31, 2016 and 2015 was an increase of $33 and a decrease of $125 , respectively. The valuation allowance relates primarily to certain net operating loss carryforwards, tax credit carryforwards and deductible temporary differences for which we have concluded it is more-likely-than-not that these items will not be realized in the ordinary course of operations. Although realization is not assured, we have concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences. At December 31, 2016 , we had tax credit carryforwards of $751 available to offset future income taxes, of which $48 are available to carryforward indefinitely while the remaining $703 will expire 2017 through 2037 if not utilized. We also had net operating loss carryforwards for income tax purposes of $0.7 billion that will expire 2017 through 2037, if not utilized, and $1.7 billion available to offset future taxable income indefinitely |
Contingencies and Litigation
Contingencies and Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Litigation | Contingencies and Litigation As more fully discussed below, we are involved in a variety of claims, lawsuits, investigations and proceedings concerning: securities law; governmental entity contracting, servicing and procurement law; intellectual property law; environmental law; employment law; the Employee Retirement Income Security Act (ERISA); and other laws and regulations. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and nonconsolidated affiliates, as well as through divestitures and sales of businesses, when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property such as patents, environmental matters, and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of December 31, 2016 , we have accrued our estimate of liability incurred under our indemnification arrangements and guarantees. 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 and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. 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 December 31, 2016 , the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of related interest, amounted to approximately $750 with the increase from the December 31, 2015 balance of $577 , primarily related to currency and interest partially offset by closed cases. With respect to the unreserved balance of $750 , 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 December 31, 2016 we had $85 of escrow cash deposits for matters we are disputing, and there are liens on certain Brazilian assets with a net book value of $4 and additional letters of credit and surety bonds of $142 and $91 , respectively, 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 State of Texas v. Xerox Corporation, Xerox State Healthcare, LLC, and ACS State Healthcare, LLC: On May 9, 2014, the State of Texas, via the Texas Office of Attorney General (the “State”), filed a lawsuit in the 53rd Judicial District Court of Travis County, Texas. The lawsuit alleges that Xerox Corporation, Xerox State Healthcare, LLC and ACS State Healthcare (collectively “ the Defendants”) violated the Texas Medicaid Fraud Prevention Act in the administration of ACS’s contract with the Texas Department of Health and Human Services (“HHSC”). Xerox Corporation provided a guaranty of contractual performance with respect to the ACS contract. The State alleges that the Defendants made false representations of material facts regarding the processes, procedures, implementation and results regarding the prior authorization of orthodontic claims. The State seeks recovery of actual damages, two times the amount of any overpayments made as a result of unlawful acts, civil penalties, pre- and post-judgment interest and all costs and attorneys’ fees. The State references the amount in controversy as exceeding hundreds of millions of dollars. The Defendants filed their Answer in June, 2014 denying all allegations. The Defendants will continue to vigorously defend themselves in this matter. This matter is a “Conduent Liability”, as defined in the Separation and Distribution Agreement dated as of December 31, 2016 between Xerox Corporation and Conduent Incorporated, for which Conduent is required to indemnify Xerox. Conduent is entitled to direct the defense of this matter. Oklahoma Firefighters Pension and Retirement System v. Xerox Corporation, Ursula M. Burns, Luca Maestri, Kathryn A. Mikells, Lynn R. Blodgett and Robert K. Zapfel: On October 21, 2016, the Oklahoma Firefighters Pension and Retirement System (“plaintiff”) filed a purported securities class action complaint against Xerox Corporation, Ursula Burns, Luca Maestri, Kathryn Mikells, Lynn Blodgett and Robert Zapfel (collectively, “defendants”) in the U.S. District Court for the Southern District of New York on behalf of the plaintiff and certain purchasers or acquirers of Xerox common stock. The complaint alleges that defendants made false and misleading statements, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5, relating to the operations and prospects of Xerox’s Health Enterprise business. Plaintiff seeks, among other things, unspecified monetary damages and attorneys’ fees. Other, similar lawsuits may follow. On December 28, 2016, the Court entered a stipulated order setting out a schedule for amendment of the complaint and for defendants’ response to that complaint following the Court’s appointment of lead plaintiff under the Private Securities Litigation Reform Act. The Court has not yet ruled on the appointment of lead plaintiff. Xerox and the individual defendants will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, 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. Guarantees, Indemnifications and Warranty Liabilities Indemnifications Provided as Part of Contracts and Agreements Acquisitions/Divestitures: We have indemnified, subject to certain deductibles and limits, the purchasers of businesses or divested assets for the occurrence of specified events under certain of our divestiture agreements. In addition, we customarily agree to hold the other party harmless against losses arising from a breach of representations and covenants, including such matters as adequate title to assets sold, intellectual property rights, specified environmental matters and certain income taxes arising prior to the date of acquisition. Where appropriate, an obligation for such indemnifications is recorded as a liability at the time of the acquisition or divestiture. Since the obligated amounts of these types of indemnifications are often not explicitly stated and/or are contingent on the occurrence of future events, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have not historically made significant payments for these indemnifications. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets are achieved post-closing. We have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. Contingent obligations related to indemnifications arising from our divestitures and contingent consideration provided for by our acquisitions are not expected to be material to our financial position, results of operations or cash flows. Other Agreements: We are also party to the following types of agreements pursuant to which we may be obligated to indemnify the other party with respect to certain matters: • Guarantees on behalf of our subsidiaries with respect to real estate leases. These lease guarantees may remain in effect subsequent to the sale of the subsidiary. • Agreements to indemnify various service providers, trustees and bank agents from any third-party claims related to their performance on our behalf, with the exception of claims that result from third-party's own willful misconduct or gross negligence. • Guarantees of our performance in certain sales and services contracts to our customers and indirectly the performance of third parties with whom we have subcontracted for their services. This includes indemnifications to customers for losses that may be sustained as a result of the use of our equipment at a customer's location. In each of these circumstances, our payment is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract and such procedures also typically allow us to challenge the other party's claims. In the case of lease guarantees, we may contest the liabilities asserted under the lease. Further, our obligations under these agreements and guarantees may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments we made. Patent Indemnifications In most sales transactions to resellers of our products, we indemnify against possible claims of patent infringement caused by our products or solutions. In addition, we indemnify certain software providers against claims that may arise as a result of our use or our subsidiaries', customers' or resellers' use of their software in our products and solutions. These indemnities usually do not include limits on the claims, provided the claim is made pursuant to the procedures required in the sales contract. Indemnification of Officers and Directors Our corporate by-laws require that, except to the extent expressly prohibited by law, we must indemnify Xerox Corporation's officers and directors against judgments, fines, penalties and amounts paid in settlement, including legal fees and all appeals, incurred in connection with civil or criminal action or proceedings, as it relates to their services to Xerox Corporation and our subsidiaries. Although the by-laws provide no limit on the amount of indemnification, we may have recourse against our insurance carriers for certain payments made by us. However, certain indemnification payments (such as those related to "clawback" provisions in certain compensation arrangements) may not be covered under our directors' and officers' insurance coverage. We also indemnify certain fiduciaries of our employee benefit plans for liabilities incurred in their service as fiduciary whether or not they are officers of the Company. Finally, in connection with our acquisition of businesses, we may become contractually obligated to indemnify certain former and current directors, officers and employees of those businesses in accordance with pre-acquisition by-laws and/or indemnification agreements and/or applicable state law. Product Warranty Liabilities In connection with our normal sales of equipment, including those under sales-type leases, we generally do not issue product warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life of the equipment under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. In a few circumstances, particularly in certain cash sales, we may issue a limited product warranty if negotiated by the customer. We also issue warranties for certain of our entry level products, where full service maintenance agreements are not available. In these instances, we record warranty obligations at the time of the sale. Aggregate product warranty liability expenses for the three years ended December 31, 2016 were $15 , $22 and $25 , respectively. Total product warranty liabilities as of December 31, 2016 and 2015 were $8 and $9 , respectively. Separation Related Guarantees and Indemnifications We are required to retain performance guarantees on certain outsourcing contracts that were transferred to Conduent as part of the Separation transaction. The guarantees are primarily associated with government contracts and our liability may be capped in certain circumstances. We have received an indemnification from Conduent to make payments to us in the event we are required to make a payment or incur a liability in connection with these performance guarantees. We expect Conduent to fully and completely perform their obligations under these contracts. In addition, we believe there is a sufficient pool of alternate providers for the services performed as part of these contracts and therefore we believe replacement providers could be identified to complete the contracted services in the event Conduent was unable to perform. Based on these considerations, we have assessed the potential loss under these guarantees and determined that no liability was required to be recorded in our financial statements associated with these guarantees. We are not required to, and will not, offer or agree to provide any performance guarantees with respect to any contract that Conduent enters into after the Separation, including renewals and extensions of existing contracts except for extensions at the sole option of the customer. Other Contingencies We have issued or provided approximately $375 of guarantees as of December 31, 2016 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil tax and labor contingencies; and iii) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations. In general, we would only be liable for the amount of these guarantees in the event we defaulted in performing our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock Series B Convertible Perpetual Preferred Stock At Separation, 300,000 shares of Xerox Series A Convertible Perpetual Preferred Stock with a carrying value of $356 , which represented all of the issued and outstanding shares of Xerox Series A Convertible Perpetual Preferred Stock, were exchanged for 180,000 newly issued shares of Xerox Series B Convertible Perpetual Preferred Stock and 120,000 newly issued shares of Conduent Series A Convertible Perpetual Preferred Stock. The $356 carrying value included a $ 7 fair value adjustment for the modification of the awards upon the exchange. The 120,000 shares of Conduent Series A Convertible Perpetual Preferred Stock has an aggregate liquidation value of $120 and were included in the distribution of Conduent's net assets at a carrying value of $142 . The carrying value of $142 is based on the proportional share of the carrying value of Xerox Series A Convertible Perpetual Preferred Stock being exchanged for Conduent's Series A Convertible Perpetual Preferred Stock. The 180,000 shares of Xerox Series B Convertible Perpetual Preferred Stock has an aggregate liquidation value of $180 and a carrying value of $214 , which likewise is the proportional share of the carrying value of Xerox Series A Convertible Perpetual Preferred Stock that was exchanged for Xerox Series B Convertible Perpetual Preferred Stock. The Xerox Series B Convertible Preferred Stock pays quarterly cash dividends at a rate of 8% per year ( $14 per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 149.8127 shares of common stock for a total of 26,966 thousand shares (reflecting an initial conversion price of approximately $6.675 per share of common stock), subject to customary anti-dilution adjustments. If the closing price of our common stock exceeds $9.75 or 146.1% of the initial conversion price of $6.675 per share of common stock for 20 out of 30 trading days, we have the right to cause any or all of the Xerox Series B Convertible Perpetual Preferred Stock to be converted into shares of common stock at the then applicable conversion rate. The convertible Preferred Stock is also convertible, at the option of the holder, upon a change in control, at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for our common stock upon such change in control. In addition, upon the occurrence of certain fundamental change events, including a change in control or the delisting of Xerox's common stock, the holder of convertible preferred stock has the right to require us to redeem any or all of the convertible preferred stock in cash at a redemption price per share equal to the liquidation preference and any accrued and unpaid dividends to, but not including, the redemption date. The convertible preferred stock is classified as temporary equity (i.e., apart from permanent equity) as a result of the contingent redemption feature. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Preferred Stock As of December 31, 2016 , we had one class of preferred stock outstanding. See Note 19 - Preferred Stock for further information. We are authorized to issue approximately 22 million shares of cumulative preferred stock, $1.00 par value per share. Common Stock We have 1.75 billion authorized shares of common stock, $1.00 par value per share. At December 31, 2016 , 101 million shares were reserved for issuance under our incentive compensation plans, 48 million shares were reserved for debt to equity exchanges and 27 million shares were reserved for conversion of the Series B convertible perpetual preferred stock. Treasury Stock We account for the repurchased common stock under the cost method and include such treasury stock as a component of our common shareholder's equity. Retirement of treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by our Board of Directors. The following provides cumulative information relating to our share repurchase programs from their inception in October 2005 through December 31, 2016 (shares in thousands). No shares were repurchased during 2016: Authorized share repurchase programs $ 8,000 Share repurchase cost $ 7,755 Share repurchase fees $ 12 Number of shares repurchased 695,230 Of the cumulative $8.0 billion of share repurchase authority previously granted by our Board of Directors, approximately $245 of that authority remained available as of December 31, 2016. The following table reflects the changes in Common and Treasury stock shares (shares in thousands): Common Stock Shares Treasury Stock Shares Balance at December 31, 2013 1,210,321 22,001 Stock based compensation plans, net 13,965 — Acquisition of Treasury stock — 86,536 Cancellation of Treasury stock (100,928) (100,928) Conversion of 2014 9% Notes 996 — Balance at December 31, 2014 1,124,354 7,609 Stock based compensation plans, net 11,292 — Acquisition of Treasury stock — 115,201 Cancellation of Treasury stock (122,810 ) (122,810 ) Balance at December 31, 2015 1,012,836 — Stock based compensation plans, net 1,539 — Balance at December 31, 2016 1,014,375 — Stock-Based Compensation We have a long-term incentive plan whereby eligible employees may be granted restricted stock units (RSUs), performance shares (PSs) and non-qualified stock options. We grant stock-based awards in order to continue to attract and retain employees and to better align employees' interests with those of our shareholders. Each of these awards is subject to settlement with newly issued shares of our common stock. At December 31, 2016 and 2015 , 41 million and 43 million shares, respectively, were available for grant of awards. Stock-based compensation expense was as follows: Year Ended December 31, 2016 2015 2014 Stock-based compensation expense, pre-tax $ 50 $ 27 $ 63 Income tax benefit recognized in earnings 19 10 24 Restricted Stock Units: Compensation expense is based upon the grant date market price. The compensation expense is recorded over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest. Performance Shares: We grant officers, and selected executives and middle managers, PSs that vest contingent upon meeting pre-determined cumulative goals for Revenue, Earnings per Share (EPS) and Cash Flow from Operations, typically over a three -year performance period. If the cumulative three -year actual results exceed the stated targets, then the plan participants have the potential to earn additional shares of common stock: a maximum overachievement of 50% of the original grant for officers and selected executives and a maximum of 25% of the original grant for all other participants. All PSs entitle the holder to one share of common stock, payable after a three -year service period and the attainment of the stated goals. In 2015, the maximum overachievement that could be earned was changed to 100% (from 50% ) for officers and selected executives. All other terms of the awards remain unchanged. Because of the difficulty in setting three -year performance goals that would appropriately take into account the Separation, PSs granted in 2016 vest contingent upon achieving one -year performance goals. The fair value of PSs is based upon the market price of our stock on the date of the grant. Compensation expense is recognized over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest. If the stated targets are not met, any recognized compensation cost would be reversed. Employee Stock Options: With the exception of the conversion of options in connection with our acquisition of Affiliated Computer Systems (ACS) in 2010, we have not issued any new stock options associated with our employee long-term incentive plan since 2004. Accordingly, all of our outstanding options at December 31, 2016 were transferred to Conduent employees as part of the Separation. After the Separation, there are no longer any Xerox options outstanding. Separation-Related Adjustments: Pursuant to the Employee Matters Agreement entered into in connection with the Separation, we made certain adjustments to the number of our share-based compensation awards, using the closing price of our common stock on the final day of trading prior to the effective date of the Separation and the volume weighted-average prices for the first trading day of Xerox or Conduent common stock, as applicable, immediately following the Separation. These adjustments were done with the intention of preserving the intrinsic value the awards had immediately prior to the Separation. All equity awards have been converted to equity awards of the post-Separation employer, as adjusted to reflect the Separation. These adjustments are reflected in the tables below. All awards continue to vest over the original vesting period. The difference between the fair value of the awards based on the volume weighted-average prices for the first trading day immediately following the Separation and the opening price on that day was not material. The Separation-related adjustments did not have a material impact on the potentially dilutive securities to be considered in the calculation of diluted earnings per share of common stock. Summary of Stock-based Compensation Activity 2016 2015 2014 (shares in thousands) Shares Weighted Average Grant Date Fair Value (1) Shares Weighted Average Grant Date Fair Value (1) Shares Weighted Average Grant Date Fair Value (1) Restricted Stock Units Outstanding at January 1 2,390 $ 11.05 12,197 $ 9.50 19,079 $ 9.62 Granted 7,174 9.57 798 11.08 926 12.30 Vested (314 ) 9.62 (10,191 ) 7.86 (6,934 ) 10.33 Cancelled (548 ) 10.12 (414 ) 9.27 (874 ) 8.55 Separation of Conduent (3,144 ) 10.07 — — — — Shares granted in equity conversion 1,674 7.52 — — — — Outstanding at December 31 7,232 7.52 2,390 11.05 12,197 9.50 Performance Shares Outstanding at January 1 23,206 $ 11.67 20,721 $ 11.36 8,058 $ 9.15 Granted 5,284 9.35 9,470 10.68 16,967 12.28 Vested (33 ) 11.33 (3,268 ) 7.90 (2,404 ) 10.68 Cancelled (4,935 ) 11.84 (3,717 ) 10.74 (1,900 ) 11.07 Separation of Conduent (7,894 ) 11.09 — — — — Shares granted in equity conversion 4,595 8.50 — — — — Outstanding at December 31 20,223 8.50 23,206 11.67 20,721 11.36 Stock Options Outstanding at January 1 3,119 $ 6.87 6,115 $ 7.00 14,199 $ 6.95 Canceled/expired (392 ) 6.99 (405 ) 7.43 (215 ) 6.95 Exercised (1,225 ) 7.03 (2,591 ) 7.09 (7,869 ) 6.92 Separation of Conduent (1,502 ) 6.70 — — — — Outstanding at December 31 — — 3,119 6.87 6,115 7.00 Exercisable at December 31 — — 3,119 6.87 6,115 7.00 _____________ (1) Exercise Price for Stock Options. The following information disclosures at December 31, 2016 reflect outstanding post-Separation stock-based awards for Xerox only and therefore exclude amounts associated with stock-based awards transferred to Conduent. The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2016 was as follows: Awards Unrecognized Compensation Remaining Weighted-Average Vesting Period (Years) Restricted Stock Units $ 30 2.2 Performance Shares 39 1.8 Total $ 69 The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows: Awards December 31, 2016 Restricted Stock Units $ 48 Performance Shares 135 The total intrinsic value and actual tax benefit realized for all vested and exercised stock-based awards was as follows: December 31, 2016 December 31, 2015 December 31, 2014 Awards Total Intrinsic Value Cash Received Tax Benefit Total Intrinsic Value Cash Received Tax Benefit Total Intrinsic Value Cash Received Tax Benefit Restricted Stock Units $ 3 $ — $ 1 $ 109 $ — $ 33 $ 85 $ — $ 26 Performance Shares — — — 35 — 12 30 — 10 Stock Options 3 9 1 14 19 5 42 55 15 |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss As previously disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, the historical statements of Other Comprehensive Loss have not been revised to reflect the effect of the Separation. Refer to Note 4 - Divestitures for additional information regarding the Separation. Other Comprehensive Loss is comprised of the following: Year Ended December 31, 2016 2015 2014 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments Losses $ (344 ) $ (346 ) $ (660 ) $ (660 ) $ (736 ) $ (734 ) Unrealized (Losses) Gains: Changes in fair value of cash flow hedges gains (losses) 18 14 13 12 (20 ) (10 ) Changes in cash flow hedges reclassed to earnings (1) (40 ) (28 ) 28 13 36 26 Other losses (1 ) (1 ) (3 ) (2 ) (1 ) (1 ) Net Unrealized (Losses) Gains (23 ) (15 ) 38 23 15 15 Defined Benefit Plans Losses Net actuarial/prior service losses (118 ) (87 ) (73 ) (86 ) (1,291 ) (861 ) Prior service amortization/curtailment (2) (10 ) (6 ) (38 ) (23 ) (46 ) (29 ) Actuarial loss amortization/settlement (2) 160 109 186 126 121 83 Fuji Xerox changes in defined benefit plans, net (3) (93 ) (93 ) 21 21 40 40 Other gains (4) 202 203 116 115 106 105 Changes in Defined Benefit Plans Gains (Losses) 141 126 212 153 (1,070 ) (662 ) Other Comprehensive Loss (226 ) (235 ) (410 ) (484 ) (1,791 ) (1,381 ) Less: Other comprehensive loss attributable to noncontrolling interests (3 ) (3 ) (1 ) (1 ) (1 ) (1 ) Other Comprehensive Loss Attributable to Xerox $ (223 ) $ (232 ) $ (409 ) $ (483 ) $ (1,790 ) $ (1,380 ) _____________ (1) Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information. (3) 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 in AOCL. Accumulated Other Comprehensive Loss (AOCL) The AOCL balance at December 31, 2016, reflects the transfer of Conduent related AOCL balances at December 31, 2016 to Conduent - refer to Note 4 - Divestitures for additional information regarding the Separation. AOCL is comprised of the following: December 31, 2016 2015 2014 Cumulative translation adjustments $ (2,274 ) $ (2,402 ) $ (1,743 ) Other unrealized (losses) gains, net (13 ) 1 (22 ) Benefit plans net actuarial losses and prior service credits (1) (2,061 ) (2,241 ) (2,394 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,348 ) $ (4,642 ) $ (4,159 ) _____________ (1) Includes our share of Fuji Xerox. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock (shares in thousands): Year Ended December 31, 2016 2015 2014 Basic Earnings per Share: Net income from continuing operations attributable to Xerox $ 616 $ 848 $ 1,029 Accrued dividends on preferred stock (24 ) (24 ) (24 ) Adjusted Net Income From Continuing Operations Available to Common Shareholders $ 592 $ 824 $ 1,005 Net loss from discontinued operations attributable to Xerox (1,093 ) (374 ) (16 ) Adjusted Net (Loss) Income Available to Common Shareholders $ (501 ) $ 450 $ 989 Weighted-average common shares outstanding 1,013,563 1,064,526 1,154,365 Basic (Loss) Earnings per Share: Continuing operations $ 0.58 $ 0.77 $ 0.87 Discontinued operations (1.07 ) (0.35 ) (0.01 ) Basic (Loss) Earnings per Share $ (0.49 ) $ 0.42 $ 0.86 Diluted Earnings per Share: Net income from continuing operations attributable to Xerox $ 616 $ 848 $ 1,029 Accrued dividends on preferred stock (24 ) (24 ) (24 ) Adjusted Net Income From Continuing Operations Available to Common Shareholders $ 592 $ 824 $ 1,005 Net loss from discontinued operations attributable to Xerox (1,093 ) (374 ) (16 ) Adjusted Net (Loss) Income Available to Common Shareholders $ (501 ) $ 450 $ 989 Weighted-average common shares outstanding 1,013,563 1,064,526 1,154,365 Common shares issuable with respect to: Stock options 694 1,294 2,976 Restricted stock and performance shares 9,722 10,404 14,256 Adjusted Weighted Average Common Shares Outstanding 1,023,979 1,076,224 1,171,597 Diluted (Loss) Earnings per Share: Continuing operations $ 0.58 $ 0.77 $ 0.86 Discontinued operations (1.07 ) (0.35 ) (0.02 ) Diluted (Loss) Earnings per Share $ (0.49 ) $ 0.42 $ 0.84 The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands): Stock Options 808 1,825 3,139 Restricted stock and performance shares 21,721 17,607 17,987 Convertible preferred stock 26,966 26,966 26,966 Total Securities 49,495 46,398 48,092 Dividends per Common Share $ 0.31 $ 0.28 $ 0.25 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS For the three years ended December 31, 2016 (in millions) Balance at beginning of period Additions charged to bad debt provision (1) Amounts (credited) charged to other income statement accounts (1) Deductions and other, net of recoveries (2) Balance at end of period 2016 Allowance for Losses: Accounts Receivable $ 74 $ 13 $ 2 $ (25 ) $ 64 Finance Receivables 118 24 4 (36 ) 110 $ 192 $ 37 $ 6 $ (61 ) $ 174 2015 Allowance for Losses: Accounts Receivable $ 82 $ 21 $ 5 $ (34 ) $ 74 Finance Receivables 131 28 — (41 ) 118 $ 213 $ 49 $ 5 $ (75 ) $ 192 2014 Allowance for Losses: Accounts Receivable $ 106 $ 16 $ (2 ) $ (38 ) $ 82 Finance Receivables 154 33 3 (59 ) 131 $ 260 $ 49 $ 1 $ (97 ) $ 213 _____________ (1) Bad debt provisions relate to estimated losses due to credit and similar collectability issues. Other charges (credits) relate to adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. (2) Deductions and other, net of recoveries primarily relates to receivable write-offs, but also includes the impact of foreign currency translation adjustments and recoveries of previously written off receivables. |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of (Loss) Income from the date of acquisition. We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of (Loss) Income from the date such determination is made. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements. Discontinued Operations As previously disclosed, on December 31, 2016 Xerox completed the separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the Separation and Distribution and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016. In 2014, we announced an agreement to sell the Information Technology Outsourcing (ITO) business to Atos SE (Atos). As a result of this agreement, we reported the ITO business as held for sale and a discontinued operation up through its date of sale, which was completed on June 30, 2015. In 2014, we also completed the disposal of Xerox Audio Visual Solutions, Inc. (XAV), which was also reported as discontinued operation. Results from these businesses are reported as Discontinued Operations and all prior period results have been reclassified to conform to this presentation. Refer to Note 4 - Divestitures for additional information regarding discontinued operations. |
Use of Estimates | Use of Estimates The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016 : Year Ended December 31, Expense/(Income) 2016 2015 2014 Provisions for restructuring and related costs $ 264 $ 27 $ 106 Provision for receivables 43 54 50 Provisions for obsolete and excess inventory 28 30 26 Provision for product warranty liability 15 22 25 Depreciation and obsolescence of equipment on operating leases 276 286 297 Depreciation of buildings and equipment 148 151 179 Amortization of internal use software 73 83 88 Amortization of product software 4 4 4 Amortization of acquired intangible assets 58 60 65 Amortization of customer contract costs 4 6 6 Defined pension benefits - net periodic benefit cost 127 141 74 Retiree health benefits - net periodic benefit cost 35 2 3 Income tax expense 62 193 198 |
Changes in Estimates - Methodology | Changes in Estimates In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments | Cash Flows In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update provides specific guidance on eight cash flow classification issues where current GAAP is either unclear or does not include specific guidance. This update is effective for our fiscal year beginning January 1, 2018. This update includes specific guidance which requires cash collected on beneficial interests received in a sale of receivables be classified as inflows from investing activities. Currently, those collections are reported in operating cash flows. We reported $270 and $305 of collections on beneficial interests as operating cash inflows on the Statement of Cash Flows for the years ended December 31, 2016 and 2015, respectively. The other issues noted in this update are not expected to have a material impact on our financial condition, results of operations or cash flows. Additionally, in November 2016 the FASB issued ASU 2016-18 , Statement of Cash Flows - Restricted Cash . The update requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We held $179 and $156 of restricted cash, currently reported in other current or long-term assets at December 31, 2016 and 2015, respectively. This update is effective for our fiscal year beginning January 1, 2018. We are currently evaluating the impact, if any, that the adoption of ASU 2016-18 may have on our statements of cash flows in future reporting periods. |
Share-based Compensation, Option and Incentive Plans Policy | Stock Compensation In March 2016, the FASB issued ASU 2016-09 , Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update includes provisions to simplify certain aspects related to the accounting for share-based awards and the related financial statement presentation. The update also requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled as compared to equity as allowed under certain conditions by current US GAAP. This change is required to be adopted prospectively in the period of adoption. In addition, the ASU modifies the classification of certain share-based payment activities within the statements of cash flows and these changes are required to be applied retrospectively to all periods presented. ASU 2016-09 is effective for our fiscal year beginning January 1, 2017. The adoption of ASU 2016-09 for the most part is not expected to have a material impact on our financial condition, results of operations or cash flows. However, the update may add volatility to our income tax expense in future periods depending upon, among other things, the level of tax expense and the price of the Company's common stock at the date of vesting for share-based awards. |
Equity Method Investments, Policy | Equity Method Accounting In March 2016, the FASB issued ASU 2016-07 , Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. This update is effective for our fiscal year beginning January 1, 2017, with early adoption permitted. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows. |
Fair Value of Financial Instruments, Policy | Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13 , Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets. The update impacts financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted as of January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. |
Business Combinations Policy [Policy Text Block] | Business Combinations In January 2017, the FASB issued ASU 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. |
Income Tax, Policy | Income Taxes In October 2016, the FASB issued ASU 2016-16 , Income Taxes - Intra-Entity Transfers of Assets Other than Inventory. This update requires recognition of the income-tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs. Under current GAAP, recognition of the income tax consequences for asset transfers other than inventory could not be recognized until the asset is sold to a third party. This update is effective for our fiscal year beginning January 1, 2018 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of the adoption of ASU 2016-16 on our consolidated financial statements. |
Interest Expense, Policy | Interest In April 2015, the FASB issued ASU 2015-03 , Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 , which indicated that the SEC staff would not object to an entity deferring and presenting debt issuance costs associated with a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Upon adoption of this update effective January 1, 2016, we reclassified $29 of debt issuance costs to long-term debt from Other long-term assets. Prior periods were retroactively revised. The costs associated with our credit agreement of $4 at January 1, 2016 remained reported as a deferred charge in Other long-term assets. |
New Accounting Pronouncements, Policy | Other Updates In 2016 and 2015, the FASB also issued the following Accounting Standards Updates which have not had, and are not expected to have, a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: • Accounting Changes and Error Corrections (Topic 250): ASU 2017-03 , Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323). Transition guidance included in certain issued but not yet adopted ASUs was updated to reflect this amendment. • Financial Instruments - Classification and Measurement: ASU 2016-01 , Financial Instruments - Recognition and Measurement of Financial Instruments and Financial Liabilities. This update is effective for our fiscal year beginning January 1, 2018. • Derivatives and Hedging: ASU 2016-06 , Contingent Put and Call Options in Debt Instruments, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Derivatives and Hedging: ASU 2016-05 , Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted. • Fair Value Measurements: ASU 2015-07 , Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) , which was effective for our fiscal year January 1, 2016. This update impacted our Plan Asset disclosures included in Note 16 - Employee Benefit Plans. • Inventory: ASU 2015-11 , Simplifying the Subsequent Measurement of Inventory, which is effective for our fiscal year beginning January 1, 2017. • Disclosures of Going Concern Uncertainties: ASU 2014-15 , Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which was effective for our fiscal year ended December 31, 2016. • Stock Compensation: ASU 2014-12 , Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, which was effective for our fiscal year beginning January 1, 2016. |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for our fiscal year beginning January 1, 2018. Subsequent to the issuance of ASU 2014-09, the FASB issued the following ASU’s which amend or provide additional guidance on topics addressed in ASU 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue Recognition - Principal versus Agent (reporting revenue gross versus net). In April 2016, the FASB issued ASU 2016-10, Revenue Recognition - Identifying Performance Obligations and Licenses. In May 2016, the FASB issued ASU 2016-12, Revenue Recognition - Narrow Scope Improvements and Practical Expedients. We will adopt this standard beginning January 1, 2018 and expect to use the permitted modified retrospective method. Under current revenue recognition guidance, a significant majority of our revenue is recorded when we invoice customers, as that is normally the point at which all the revenue recognition criteria are met. Under ASU 2014-09, we expect the unit of accounting, that is, the identification performance obligations, will be consistent with current revenue guidance. Additionally, based on the nature of our contracts we expect to continue to recognize revenue upon invoicing the customer for the large majority of our revenue when we adopt ASU 2014-09. Accordingly, the adoption of this standard is not expected to have a material impact for the large majority of our revenues. Additionally, a significant portion of our equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these sales are not expected to be impacted by the adoption of ASU 2014-09. We are continuing to evaluate certain contracts, which are more complex or where revenue recognition criteria are not currently met when invoicing occurs, to determine their treatment under ASU 2014-09. Additionally, we are also assessing the impacts of the cost deferral guidance required by ASU 2014-09 to determine if there will be any significant change from our current practice. Although at this time we don’t expect a material change in our revenue recognition, in 2017 we expect to continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. Revenue Recognition We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows: Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis. Maintenance Services: Maintenance service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract. Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.” Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product. Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms. Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement. Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. Services: Revenues associated with our document management services are generally recognized as services are rendered, which is generally on the basis of the number of transactions processed. In service arrangements where final acceptance of a printing solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. In connection with our services arrangements, we may incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. These capitalized costs are amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. Our services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenues. Other Revenue Recognition Policies Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables: • Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above. • Contracts for multiple types of document related services including professional and value-added services. For instance, we may contract for an implementation of a printing solution and also provide services to operate the solution over a period of time; or we may contract to scan, manage and store customer documents. In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria: • The delivered item(s) has value to the customer on a stand-alone basis; and • If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable. Revenue-based Taxes: We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The primary revenue-based taxes are sales tax and value-added tax (VAT). Revenue Recognition We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows: Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis. Maintenance Services: Maintenance service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract. Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.” Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product. Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms. Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement. |
Leases | Leases In February 2016, the FASB issued ASU 2016-02 , Leases . This update requires the recognition of leased assets and lease obligations by lessees for those leases currently classified as operating leases under existing lease guidance. Short term leases with a term of 12 months or less are not required to be recognized. The update also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for our fiscal year beginning January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. |
Finance, Loans and Leases Receivable, Policy | Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. |
Services-Related Revenue | Services: Revenues associated with our document management services are generally recognized as services are rendered, which is generally on the basis of the number of transactions processed. In service arrangements where final acceptance of a printing solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer. In connection with our services arrangements, we may incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. These capitalized costs are amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific. Our services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenues. |
Multiple Element Arrangements | Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables: • Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above. • Contracts for multiple types of document related services including professional and value-added services. For instance, we may contract for an implementation of a printing solution and also provide services to operate the solution over a period of time; or we may contract to scan, manage and store customer documents. In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria: • The delivered item(s) has value to the customer on a stand-alone basis; and • If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable. |
Shipping and Handling | Shipping and Handling Costs related to shipping and handling are recognized as incurred and included in Cost of sales in the Consolidated Statements of (Loss) Income. |
Research, Development and Engineering (RD&E) | Research, Development and Engineering (RD&E) Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $95 , $126 and $132 in 2016 , 2015 and 2014 , respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less. |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Sales, Policy | Receivable Sales We regularly transfer certain portions of our receivable portfolios and normally account for those transfers as sales based on meeting the criteria for derecognition in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Gains or losses on the sale of receivables depend, in part, on both (a) the cash proceeds and (b) the net non-cash proceeds received or paid. When we sell receivables, we normally receive beneficial interests in the transferred receivables from the purchasers as part of the proceeds. We may refer to these beneficial interests as a deferred purchase price. The beneficial interests obtained are initially measured at their fair value. We generally estimate fair value based on the present value of expected future cash flows, which are calculated using management ' s best estimates of the key assumptions including credit losses, prepayment rate and discount rates commensurate with the risks involved. Refer to Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net for more details on our receivable sales . |
Inventories | Inventories Inventories are carried at the lower of average cost or market. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which is normally not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations. |
Land, Buildings and Equipment and Equipment on Operating Leases | Land, Buildings and Equipment on Operating Leases Land, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 7 - Inventories and Equipment on Operating Leases, Net and Note 8 - Land, Buildings, Equipment and Software, Net for further discussion. |
Software - Internal Use and Product | Software - Internal Use and Product We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. |
Capitalization of Internal Costs | Software - Internal Use and Product We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized but rather is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a "component") if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and perform a detailed quantitative test of impairment (Step 1). If we perform the detailed quantitative impairment test and the carrying amount of the reporting unit exceeds its fair value, we would perform an analysis (Step 2) to measure such impairment. In 2016 , we elected to proceed to the quantitative assessment of the recoverability of our goodwill balances for each of our reporting units in performing our annual impairment test. Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, patents on existing technology and trademarks. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. Refer to Note 10 - Goodwill and Intangible Assets, Net for further information. Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, including buildings, equipment, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. Intangibles - Goodwill and Other In January 2017 the FASB issued ASU 2017-04 , Intangibles - Goodwill and Other - Simplifying the Goodwill Impairment Test , which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. The adoption of this standard is not expected to have any effect on our financial condition, results of operations or cash flows. |
Pension and Post-Retirement Benefit Obligations | Pension and Post-Retirement Benefit Obligations We sponsor various forms of defined benefit pension plans in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost, are recognized in Accumulated Other Comprehensive Loss, net of tax. Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms). For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach. The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments. Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the "corridor" method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants. Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant ' s vested benefit is considered fully settled upon payment of the lump-sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant ' s vested benefit. |
Foreign Currency Transactions and Re-measurement | Foreign Currency Translation and Re-measurement The functional currency for most foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss. The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars. A combination of current and historical exchange rates is used in re-measuring the local currency transactions of these subsidiaries and the resulting exchange adjustments are recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurments. |
Receivables, Policy | Under most of the agreements, 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. 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 receivable 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 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 their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Estimates | The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016 : Year Ended December 31, Expense/(Income) 2016 2015 2014 Provisions for restructuring and related costs $ 264 $ 27 $ 106 Provision for receivables 43 54 50 Provisions for obsolete and excess inventory 28 30 26 Provision for product warranty liability 15 22 25 Depreciation and obsolescence of equipment on operating leases 276 286 297 Depreciation of buildings and equipment 148 151 179 Amortization of internal use software 73 83 88 Amortization of product software 4 4 4 Amortization of acquired intangible assets 58 60 65 Amortization of customer contract costs 4 6 6 Defined pension benefits - net periodic benefit cost 127 141 74 Retiree health benefits - net periodic benefit cost 35 2 3 Income tax expense 62 193 198 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating segment revenues and profitability | Selected financial information for our reportable segments was as follows: Document Technology Services Other Total 2016 (1) Revenue $ 6,458 $ 3,438 $ 550 $ 10,446 Finance income 251 67 7 325 Total Segment Revenue $ 6,709 $ 3,505 $ 557 $ 10,771 Depreciation and amortization (2) $ 274 $ 218 $ 13 $ 505 Interest expense 108 19 182 309 Segment profit (loss) 901 469 (223 ) 1,147 Equity in net income of unconsolidated affiliates 97 24 — 121 2015 (1) Revenue $ 7,098 $ 3,485 $ 536 $ 11,119 Finance income 267 72 7 346 Total Segment Revenue $ 7,365 $ 3,557 $ 543 $ 11,465 Depreciation and amortization (2) $ 297 $ 222 $ 11 $ 530 Interest expense 109 20 217 346 Segment profit (loss) 1,041 458 (225 ) 1,274 Equity in net income of unconsolidated affiliates 108 27 — 135 2014 (1) Revenue $ 8,044 $ 3,658 $ 590 $ 12,292 Finance income 314 65 8 387 Total Segment Revenue $ 8,358 $ 3,723 $ 598 $ 12,679 Depreciation and amortization (2) $ 334 $ 225 $ 15 $ 574 Interest expense 121 18 227 366 Segment profit (loss) 1,285 443 (218 ) 1,510 Equity in net income of unconsolidated affiliates 128 32 — 160 _____________ (1) Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). (2) Depreciation and amortization excludes amortization of intangible assets - see reconciliation below. |
Reconciliation to pre-tax income (loss) | The following is a reconciliation of segment profit to pre-tax income: Year Ended December 31, 2016 2015 2014 Total Segment Profit $ 1,147 $ 1,274 $ 1,510 Reconciling items: Amortization of intangible assets (58 ) (60 ) (65 ) Equity in net income of unconsolidated affiliates (121 ) (135 ) (160 ) Restructuring and related costs (264 ) (27 ) (106 ) Restructuring charges of Fuji Xerox (3 ) (4 ) (3 ) Business transformation costs (1) (2 ) (8 ) (7 ) Non-service retirement-related costs (2) (131 ) (116 ) (79 ) Pre-tax Income $ 568 $ 924 $ 1,090 _____________ (1) Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs. (2) Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements. |
Revenue and long-lived assets by geography | Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for the three years ended December 31: Revenues Long-Lived Assets (1) 2016 2015 2014 2016 2015 United States $ 6,403 $ 6,734 $ 7,184 $ 824 $ 886 Europe 2,861 3,155 3,649 359 435 Other areas 1,507 1,576 1,846 178 163 Total Revenues and Long-Lived Assets $ 10,771 $ 11,465 $ 12,679 $ 1,361 $ 1,484 _____________ (1) Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Equipment on operating leases, net, (iii) Internal use software, net and (iv) Product software, |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price allocations for our 2016 acquisitions as of the acquisition dates: Weighted-Average Life (Years) Total 2016 Acquisitions Accounts/finance receivables $ 2 Intangible assets: Customer relationships 10 7 Trademarks 20 2 Non-compete agreements 4 1 Goodwill 19 Other assets 3 Total Assets Acquired 34 Liabilities assumed (4 ) Total Purchase Price $ 30 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Financial Information - Discontinued Operations | Summarized financial information for our Discontinued Operations is as follows: Year Ended December 31, 2016 Conduent ITO Total Revenue $ 6,355 $ — $ 6,355 Loss from operations $ (1,343 ) $ — $ (1,343 ) Loss on disposal — — — Net loss before income taxes (1,343 ) — (1,343 ) Income tax benefit 250 — 250 Loss from discontinued operations, net of tax $ (1,093 ) $ — $ (1,093 ) Year Ended December 31, 2015 Conduent ITO Total Revenue $ 6,604 $ 619 $ 7,223 (Loss) income from operations $ (511 ) $ 104 $ (407 ) Loss on disposal — (101 ) (101 ) Net (loss) income before income taxes (511 ) 3 (508 ) Income tax benefit (expense) 215 (81 ) 134 Loss from discontinued operations, net of tax $ (296 ) $ (78 ) $ (374 ) Year Ended December 31, 2014 Conduent ITO Other Total Revenue $ 6,885 $ 1,320 $ 45 $ 8,250 Income (loss) from operations $ 116 $ 74 $ (1 ) $ 189 Loss on disposal — (181 ) (1 ) (182 ) Net income (loss) before income taxes 116 (107 ) (2 ) 7 Income tax expense (17 ) (5 ) (1 ) (23 ) Income (loss) from discontinued operations, net of tax $ 99 $ (112 ) $ (3 ) $ (16 ) The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016. Acquisition Date of Acquisition Acquisition Price RSA Medical LLC (RSA Medical) September 2015 $ 141 Intellinex LLC January 2015 28 Consilience Software, Inc. (Consilience) September 2014 25 ISG Holdings, Inc. (ISG) May 2014 225 Invoco Holding GmbH (Invoco) January 2014 54 The balance Due from Conduent includes the following amounts: Due from\(to) Conduent December 31, 2016 Cash adjustment $ 161 Taxes payable (32 ) Other (2 ) Total Due from Conduent $ 127 |
Discontinued Operations - Balance Sheet | The balances as of December 31, 2015 are presented for comparative purposes and are included in Assets and Liabilities of discontinued operations in the Consolidated Balance Sheet at December 31, 2015: December 31, 2016 December 31, 2015 Cash and cash equivalents $ 390 $ 140 Accounts receivable, net 1,287 1,251 Other current assets 239 227 Total current assets of discontinued operations 1,916 1,618 Land, buildings and equipment, net 283 279 Intangible assets, net 1,144 1,425 Goodwill 3,889 4,872 Other long-term assets 477 609 Total long-term assets of discontinued operations 5,793 7,185 Total Assets of Discontinued Operations $ 7,709 $ 8,803 Current portion of long-term debt $ 28 $ 23 Accounts payable 159 272 Accrued pension and benefit costs 284 245 Unearned income 208 226 Other current liabilities 742 861 Total current liabilities of discontinued operations 1,421 1,627 Long-term debt 1,913 37 Pension and other benefit liabilities 173 153 Other long-term liabilities 757 932 Total long-term liabilities of discontinued operations 2,843 1,122 Total Liabilities of Discontinued Operations $ 4,264 $ 2,749 |
Discontinued operations, Conduent, costs and expenses [Text Block] | The following is a summary of selected financial information of Conduent for the three years ended December 31, 2016 : Year Ended December 31, 2016 2015 2014 Cost and Expenses: Cost of services $ 5,456 $ 5,923 $ 5,749 Other Expenses (1) 2,065 1,192 1,020 Total Costs and Expenses $ 7,521 $ 7,115 $ 6,769 Selected amounts included in Costs and Expenses: Depreciation of buildings and equipment $ 130 $ 126 $ 145 Amortization of internal use software 49 51 52 Amortization of product software 61 65 58 Amortization of acquired intangible assets 280 250 250 Amortization of customer contract costs 93 108 122 Operating lease rent expense 378 389 385 Defined contribution plans 35 34 31 Interest expense (2) 13 8 11 Goodwill impairment charge (3) 935 — — Expenditures: Cost of additions to land, buildings and equipment $ 150 $ 126 $ 144 Cost of additions to internal use software 39 26 26 Customer-related deferred set-up/transition and inducement costs 62 55 55 _____________ (1) 2016 amount excludes $159 of Separation related costs and $ 18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations. (2) Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016. (3) Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business. |
Accounts Receivables, Net (Tabl
Accounts Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net were as follows: December 31, 2016 2015 Invoiced $ 651 $ 741 Accrued 374 401 Allowance for doubtful accounts (64 ) (74 ) Accounts Receivable, Net $ 961 $ 1,068 |
Schedule Of Accounts Receivable Sales | Accounts receivable sales were as follows: Year Ended December 31, 2016 2015 2014 Accounts receivable sales $ 2,267 $ 2,142 $ 2,563 Deferred proceeds 233 247 387 Loss on sale of accounts receivable 16 13 15 Estimated increase (decrease) to operating cash flows (1) 30 62 (64 ) _____________ (1) Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net were as follows: December 31, 2016 2015 Gross receivables $ 4,380 $ 4,683 Unearned income (526 ) (577 ) Subtotal 3,854 4,106 Residual values — — Allowance for doubtful accounts (110 ) (118 ) Finance Receivables, Net 3,744 3,988 Less: Billed portion of finance receivables, net 90 97 Less: Current portion of finance receivables not billed, net 1,256 1,315 Finance Receivables Due After One Year, Net $ 2,398 $ 2,576 |
Schedule of Financing Receivables, Minimum Payments | Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90 ): 2017 2018 2019 2020 2021 Thereafter Total $ 1,628 $ 1,225 $ 855 $ 485 $ 175 $ 12 $ 4,380 |
Finance Receivables Sales Activity | The following is a summary of our prior sales activity: Year Ended December 31, 2013 2012 Net carrying value (NCV) sold $ 676 $ 682 Allowance included in NCV 17 18 Cash proceeds received 635 630 Beneficial interests received 86 101 |
Impact to Cash Flows from Sales of Finance Receivables | The net impact from the sales of finance receivables on operating cash flows is summarized below: 2016 2015 2014 2013/2012 Net cash received for sales of finance receivables (1) $ — $ — $ — $ 1,256 Impact from prior sales of finance receivables (2) (186 ) (342 ) (527 ) (437 ) Collections on beneficial interests 30 56 94 58 Estimated (Decrease) Increase to Operating Cash Flows $ (156 ) $ (286 ) $ (433 ) $ 877 _____________ (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 Rollforward, and the Investment in Finance 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 (2) Total Balance at December 31, 2014 (1) $ 51 $ 20 $ 58 $ 2 $ 131 Provision 11 6 10 1 28 Charge-offs (8 ) (10 ) (17 ) (1 ) (36 ) Recoveries and other (3) — 1 (6 ) — (5 ) Balance at December 31, 2015 $ 54 $ 17 $ 45 $ 2 $ 118 Provision 10 3 11 — 24 Charge-offs (12 ) (8 ) (15 ) — (35 ) Recoveries and other (3) 3 4 (4 ) — 3 Balance at December 31, 2016 $ 55 $ 16 $ 37 $ 2 $ 110 Finance Receivables Collectively Evaluated for Impairment: December 31, 2015 (4) $ 2,174 $ 365 $ 1,509 $ 58 $ 4,106 December 31, 2016 (4) $ 2,138 $ 378 $ 1,286 $ 52 $ 3,854 _____________ (1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. (2) Includes developing market countries and smaller units. (3) 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. (4) Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015 , respectively. |
Credit Quality Indicators for Finance Receivables | Details about our finance receivables portfolio based on industry and credit quality indicators are as follows: December 31, 2016 December 31, 2015 (4) Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Investment Grade Non-investment Grade Sub-standard Total Finance Receivables Finance and other services $ 181 $ 342 $ 95 $ 618 $ 195 $ 285 $ 91 $ 571 Government and education 543 57 8 608 575 48 7 630 Graphic arts 138 102 107 347 145 92 127 364 Industrial 82 78 24 184 89 62 22 173 Healthcare 79 47 17 143 90 46 19 155 Other 82 103 53 238 121 107 53 281 Total United States 1,105 729 304 2,138 1,215 640 319 2,174 Finance and other services 54 43 15 112 55 35 9 99 Government and education 52 6 2 60 59 7 2 68 Graphic arts 39 37 24 100 45 35 21 101 Industrial 21 13 6 40 23 12 3 38 Other 33 25 8 66 33 23 3 59 Total Canada 199 124 55 378 215 112 38 365 France 181 222 51 454 203 207 101 511 U.K/Ireland 189 63 1 253 235 91 3 329 Central (1) 182 148 19 349 206 186 25 417 Southern (2) 36 131 14 181 36 138 17 191 Nordic (3) 26 22 1 49 24 35 2 61 Total Europe 614 586 86 1,286 704 657 148 1,509 Other 35 15 2 52 41 16 1 58 Total $ 1,953 $ 1,454 $ 447 $ 3,854 $ 2,175 $ 1,425 $ 506 $ 4,106 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. |
Aging of Billed Finance Receivables | The aging of our billed finance receivables is as follows: December 31, 2016 Current 31-90 Days Past Due >90 Days Past Due Total Billed Unbilled Total Finance Receivables >90 Days and Accruing Finance and other services $ 13 $ 3 $ 1 $ 17 $ 601 $ 618 $ 11 Government and education 10 4 3 17 591 608 25 Graphic arts 13 1 — 14 333 347 5 Industrial 4 1 1 6 178 184 5 Healthcare 3 1 1 5 138 143 5 Other 9 2 1 12 226 238 5 Total United States 52 12 7 71 2,067 2,138 56 Canada 3 — — 3 375 378 8 France 3 — — 3 451 454 20 U.K./Ireland 2 1 — 3 250 253 1 Central (1) 2 1 — 3 346 349 5 Southern (2) 5 1 1 7 174 181 6 Nordic (3) 1 — — 1 48 49 1 Total Europe 13 3 1 17 1,269 1,286 33 Other 3 — — 3 49 52 — Total $ 71 $ 15 $ 8 $ 94 $ 3,760 $ 3,854 $ 97 December 31, 2015 (4) Current 31-90 >90 Days Total Billed Unbilled Total >90 Days Finance and other services $ 10 $ 2 $ 2 $ 14 $ 557 $ 571 $ 14 Government and education 12 1 4 17 613 630 37 Graphic arts 12 2 1 15 349 364 8 Industrial 5 1 1 7 166 173 7 Healthcare 4 1 1 6 149 155 9 Other 14 2 2 18 263 281 7 Total United States 57 9 11 77 2,097 2,174 82 Canada 3 — — 3 362 365 9 France — — — — 511 511 25 U.K./Ireland 1 — — 1 328 329 1 Central (1) 3 1 1 5 412 417 7 Southern (2) 8 2 3 13 178 191 10 Nordic (3) 1 — — 1 60 61 4 Total Europe 13 3 4 20 1,489 1,509 47 Other 1 1 — 2 56 58 — Total $ 74 $ 13 $ 15 $ 102 $ 4,004 $ 4,106 $ 138 _____________ (1) Switzerland, Germany, Austria, Belgium and Holland. (2) Italy, Greece, Spain and Portugal. (3) Sweden, Norway, Denmark and Finland. |
Inventories and Equipment on 38
Inventories and Equipment on Operating Leases, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories and Equipment on Operating Leases, Net [Abstract] | |
Schedule of Inventories by major category | The following is a summary of Inventories by major category: December 31, 2016 2015 Finished goods $ 713 $ 751 Work-in-process 47 51 Raw materials 81 99 Total Inventories $ 841 $ 901 |
Schedule of Property Subject to or Available for Operating Lease | Equipment on operating leases and the related accumulated depreciation were as follows: December 31, 2016 2015 Equipment on operating leases $ 1,468 $ 1,478 Accumulated depreciation (993 ) (983 ) Equipment on Operating Leases, Net $ 475 $ 495 |
Schedule of Future Rental Revenues on Operating Leases | Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are: 2017 2018 2019 2020 2021 Thereafter $ 319 $ 221 $ 142 $ 76 $ 26 $ 3 |
Land, Buildings, Equipment an39
Land, Buildings, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Land, Buildings, Equipment and Software, Net [Abstract] | |
Land, buildings and equipment, net | Land, buildings and equipment, net were as follows: December 31, Estimated Useful Lives (Years) 2016 2015 Land $ 20 $ 21 Building and building equipment 25 to 50 911 919 Leasehold improvements Varies 219 244 Plant machinery 5 to 12 1,225 1,274 Office furniture and equipment 3 to 15 657 700 Other 4 to 20 70 63 Construction in progress 33 28 Subtotal 3,135 3,249 Accumulated depreciation (2,475 ) (2,532 ) Land, Buildings and Equipment, Net $ 660 $ 717 |
Land, Buildings and Equipment Depreciation Expense | Depreciation expense and operating lease rent expense were as follows: Year Ended December 31, 2016 2015 2014 Depreciation expense $ 148 $ 151 $ 179 Operating lease expense 157 164 175 |
Schedule of Future Minimum Operating Lease Non-cancelable Payments | Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2016 were as follows: 2017 2018 2019 2020 2021 Thereafter $ 124 $ 94 $ 72 $ 53 $ 40 $ 71 |
Additions to Internal Use and Product Software | Year Ended December 31, Additions to: 2016 2015 2014 Internal use software $ 45 $ 64 $ 57 |
Capitalized Costs, Internal Use and Product Software [Table Text Block] | December 31, Capitalized costs, net: 2016 2015 Internal use software $ 218 $ 264 |
Investment in Affiliates, at 40
Investment in Affiliates, at Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |
Investments in and Advances to Affiliates | Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows: December 31, 2016 2015 Fuji Xerox $ 1,313 $ 1,315 Other 75 67 Investments in Affiliates, at Equity $ 1,388 $ 1,382 |
Equity Net Income in Unconsolidated Affiliates | Our equity in net income of our unconsolidated affiliates was as follows: Year Ended December 31, 2016 2015 2014 Fuji Xerox $ 108 $ 117 $ 147 Other 13 18 13 Total Equity in Net Income of Unconsolidated Affiliates $ 121 $ 135 $ 160 |
Exchange rates for Equity Investments in Affiliates | Yen/U.S. Dollar exchange rates used to translate are as follows: Financial Statement Exchange Basis 2016 2015 2014 Summary of Operations Weighted average rate 108.68 121.01 105.58 Balance Sheet Year-end rate 116.53 120.49 119.46 |
Other Transactions with Equity Affiliates | Transactions with Fuji Xerox were as follows: Year Ended December 31, 2016 2015 2014 Dividends received from Fuji Xerox $ 47 $ 51 $ 58 Royalty revenue earned 107 102 115 Inventory purchases from Fuji Xerox 1,641 1,728 1,831 Inventory sales to Fuji Xerox 80 108 120 R&D payments received from Fuji Xerox 1 1 1 R&D payments paid to Fuji Xerox 13 7 17 |
Fuji Xerox [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | Summarized financial information for Fuji Xerox is as follows: Year Ended December 31, 2016 2015 2014 Summary of Operations Revenues $ 10,161 $ 9,925 $ 11,112 Costs and expenses 9,486 9,198 10,242 Income before income taxes 675 727 870 Income tax expense 217 233 262 Net Income 458 494 608 Less: Net income - noncontrolling interests 7 7 4 Net Income - Fuji Xerox $ 451 $ 487 $ 604 Balance Sheet Assets: Current assets $ 4,464 $ 4,585 $ 4,801 Long-term assets 4,734 4,946 4,742 Total Assets $ 9,198 $ 9,531 $ 9,543 Liabilities and Equity: Current liabilities $ 2,679 $ 2,808 $ 2,982 Long-term debt 283 584 580 Other long-term liabilities 583 511 482 Noncontrolling interests 31 31 30 Fuji Xerox shareholders' equity 5,622 5,597 5,469 Total Liabilities and Equity $ 9,198 $ 9,531 $ 9,543 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill, by reportable segment: Document Technology Services Total Balance at December 31, 2014 $ 2,353 $ 1,668 $ 4,021 Foreign currency translation (38 ) (38 ) (76 ) Acquisitions: Other 6 — 6 Balance at December 31, 2015 $ 2,321 $ 1,630 $ 3,951 Foreign currency translation (93 ) (90 ) (183 ) Acquisitions: Imagetek 10 — 10 Other 9 — 9 Balance at December 31, 2016 $ 2,247 $ 1,540 $ 3,787 |
Schedule of Finite-Lived Intangible Assets by Major Class | Intangible assets were comprised of the following: December 31, 2016 December 31, 2015 Weighted Average Amortization Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 13 years $ 508 $ 410 $ 98 $ 509 $ 378 $ 131 Distribution network 25 years 123 84 39 123 79 44 Trademarks 20 years 250 107 143 248 95 153 Technology, patents and non-compete 13 years 15 5 10 19 7 12 Total Intangible Assets $ 896 $ 606 $ 290 $ 899 $ 559 $ 340 |
Restructuring and Asset Impai42
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program Activity | A summary of our restructuring program activity during the three years ended December 31, 2016 is as follows: Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments (2) Total Balance at December 31, 2013 $ 96 $ 3 $ — $ 99 Restructuring provision 115 3 5 123 Reversals of prior accruals (16 ) — (1 ) (17 ) Net Current Period Charges (1) 99 3 4 106 Charges against reserve and currency (112 ) (5 ) (4 ) (121 ) Balance at December 31, 2014 $ 83 $ 1 $ — $ 84 Restructuring provision 35 2 7 44 Reversals of prior accruals (16 ) (1 ) — (17 ) Net Current Period Charges (1) 19 1 7 27 Charges against reserve and currency (84 ) (1 ) (7 ) (92 ) Balance at December 31, 2015 $ 18 $ 1 $ — $ 19 Restructuring provision 224 28 — 252 Reversals of prior accruals (16 ) (1 ) (5 ) (22 ) Net Current Period Charges (1) 208 27 (5 ) 230 Charges against reserve and currency (122 ) (5 ) 5 (122 ) Balance at December 31, 2016 $ 104 $ 23 $ — $ 127 _____________ (1) Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges. (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. |
Reconciliation to the Condensed Consolidated Statements of Cash Flows | The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows: Year Ended December 31, 2016 2015 2014 Charges against reserve $ (122 ) $ (92 ) $ (121 ) Asset impairments — 7 5 Effects of foreign currency and other non-cash items 4 6 6 Restructuring Cash Payments $ (118 ) $ (79 ) $ (110 ) |
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: Year Ended December 31, 2016 2015 2014 Document Technology $ 208 $ 15 $ 76 Services 25 4 16 Other (3 ) 8 14 Total Net Restructuring Charges $ 230 $ 27 $ 106 |
Supplementary Financial Infor43
Supplementary Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplementary Financial Information The components of Other assets and liabilities were as follows: December 31, 2016 2015 Other Current Assets Income taxes receivable $ 50 $ 12 Royalties, license fees and software maintenance 21 34 Restricted cash 92 84 Prepaid expenses 45 51 Derivative instruments 88 55 Deferred purchase price from sales of accounts receivables 48 61 Beneficial interests - sales of finance receivables 8 8 Advances and deposits 15 25 Other 125 128 Due from Conduent 127 — Total Other Current Assets $ 619 $ 458 Other Current Liabilities Income taxes payable $ 45 $ 28 Other taxes payable 78 76 Interest payable 55 73 Restructuring reserves 121 18 Derivative instruments 39 11 Product warranties 7 8 Dividends payable 91 85 Distributor and reseller rebates/commissions 120 106 Servicer liabilities 62 83 Other 290 227 Total Other Current Liabilities $ 908 $ 715 Other Long-term Assets Deferred taxes $ 1,475 $ 1,450 Income taxes receivable 14 9 Prepaid pension costs 17 22 Derivative instruments 4 7 Net investment in TRG 126 142 Internal use software, net 218 264 Product software, net 8 8 Restricted cash 87 72 Debt issuance costs, net 3 4 Customer contract costs, net 7 13 Beneficial interest - sales of finance receivables 16 30 Deferred compensation plan investments 15 13 Other 165 176 Total Other Long-term Assets $ 2,155 $ 2,210 Other Long-term Liabilities Deferred taxes $ 42 $ 51 Income taxes payable 16 49 Environmental reserves 9 11 Restructuring reserves 6 1 Other 120 126 Total Other Long-term Liabilities $ 193 $ 238 |
Schedule of Restricted Cash and Cash Equivalents | Restricted cash amounts were as follows: December 31, 2016 2015 Tax and labor litigation deposits in Brazil $ 85 $ 71 Escrow and cash collections related to receivable sales 62 83 Other restricted cash 32 2 Total Restricted Cash $ 179 $ 156 |
Summarized Financial Information - Discontinued Operations | Summarized financial information for our Discontinued Operations is as follows: Year Ended December 31, 2016 Conduent ITO Total Revenue $ 6,355 $ — $ 6,355 Loss from operations $ (1,343 ) $ — $ (1,343 ) Loss on disposal — — — Net loss before income taxes (1,343 ) — (1,343 ) Income tax benefit 250 — 250 Loss from discontinued operations, net of tax $ (1,093 ) $ — $ (1,093 ) Year Ended December 31, 2015 Conduent ITO Total Revenue $ 6,604 $ 619 $ 7,223 (Loss) income from operations $ (511 ) $ 104 $ (407 ) Loss on disposal — (101 ) (101 ) Net (loss) income before income taxes (511 ) 3 (508 ) Income tax benefit (expense) 215 (81 ) 134 Loss from discontinued operations, net of tax $ (296 ) $ (78 ) $ (374 ) Year Ended December 31, 2014 Conduent ITO Other Total Revenue $ 6,885 $ 1,320 $ 45 $ 8,250 Income (loss) from operations $ 116 $ 74 $ (1 ) $ 189 Loss on disposal — (181 ) (1 ) (182 ) Net income (loss) before income taxes 116 (107 ) (2 ) 7 Income tax expense (17 ) (5 ) (1 ) (23 ) Income (loss) from discontinued operations, net of tax $ 99 $ (112 ) $ (3 ) $ (16 ) The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016. Acquisition Date of Acquisition Acquisition Price RSA Medical LLC (RSA Medical) September 2015 $ 141 Intellinex LLC January 2015 28 Consilience Software, Inc. (Consilience) September 2014 25 ISG Holdings, Inc. (ISG) May 2014 225 Invoco Holding GmbH (Invoco) January 2014 54 The balance Due from Conduent includes the following amounts: Due from\(to) Conduent December 31, 2016 Cash adjustment $ 161 Taxes payable (32 ) Other (2 ) Total Due from Conduent $ 127 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Interest Income and Interest Expense Disclosure | Interest paid on our short-term and long-term debt amounted to $352 , $365 and $400 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Year Ended December 31, 2016 2015 2014 Interest paid - continuing operations $ 332 $ 356 $ 387 Interest paid - discontinued operations 20 9 13 Total interest paid on debt $ 352 $ 365 $ 400 |
Schedule of Short-term Debt | Short-term borrowings were as follows: December 31, 2016 2015 Notes Payable $ 4 $ 3 Current maturities of long-term debt 1,007 959 Total Short-term Debt $ 1,011 $ 962 |
Schedule of Long-term Debt Instruments | Long-term debt was as follows: December 31, Stated Rate Weighted Average Interest Rates at December 31, 2016 (3) 2016 2015 Xerox Corporation Senior Notes due 2016 $ — $ 700 Notes due 2016 — 250 Senior Notes due 2017 (1) 6.75 % 6.83 % 500 500 Senior Notes due 2017 (1) 2.95 % 2.98 % 500 500 Notes due 2018 0.57 % 0.57 % 1 1 Senior Notes due 2018 6.35 % 6.37 % 1,000 1,000 Senior Notes due 2019 2.75 % 2.77 % 500 500 Senior Notes due 2019 5.63 % 5.66 % 650 650 Senior Notes due 2020 2.80 % 2.81 % 400 400 Senior Notes due 2020 3.50 % 3.70 % 400 400 Senior Notes due 2020 2.75 % 2.77 % 400 400 Senior Notes due 2021 4.50 % 5.39 % 1,062 1,062 Senior Notes due 2024 3.80 % 3.84 % 300 300 Senior Notes due 2035 4.80 % 4.84 % 250 250 Senior Notes due 2039 6.75 % 6.78 % 350 350 Subtotal - Xerox Corporation $ 6,313 $ 7,263 Subsidiary Companies Capital lease obligations 9.44 % 31 39 Other 0.34 % 1 1 Subtotal - Subsidiary Companies $ 32 $ 40 Principal debt balance $ 6,345 $ 7,303 Unamortized discount (43 ) (52 ) Debt issuance costs (21 ) (29 ) Fair value adjustments (2) Terminated swaps 27 47 Current swaps 4 7 Less: current maturities (1,007 ) (959 ) Total Long-term Debt $ 5,305 $ 6,317 _____________ (1) Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information. (2) Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. (3) Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. |
Schedule of Maturities of Long-term Debt | Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows: 2017 (1) 2018 2019 2020 2021 Thereafter Total $ 1,007 $ 1,008 $ 1,156 $ 1,207 $ 1,067 $ 900 $ 6,345 _____________ (1) Quarterly long-term debt maturities from continuing operations for 2017 are $1,001 , $2 , $2 and $2 for the first, second, third and fourth quarters, respectively. |
Schedule Of Interest Expense And Interest Income | Interest expense and interest income was as follows: Year Ended December 31, 2016 2015 2014 Interest expense (1) $ 309 $ 346 $ 366 Interest income (2) 330 352 396 _____________ (1) Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income. (2) Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following is a summary of our fair value hedges at December 31, 2016 : Debt Instrument Year First Designated Notional Amount Net Fair Value Weighted Average Interest Rate Paid Interest Rate Received Basis Maturity Senior Note 2021 2014 $ 300 $ 4 2.60 % 4.50 % Libor 2021 |
Schedule of a Summary of Foreign Exchange Contracts Gross Notional Values | The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2016 : Currencies Hedged (Buy/Sell) Gross Notional Value Fair Value Asset (Liability) (1) Euro/U.K. Pound Sterling $ 1,321 $ 22 Japanese Yen/U.S. Dollar 389 (27 ) U.S. Dollar/U.K. Pound Sterling 268 41 Japanese Yen/Euro 261 (6 ) U.S. Dollar/Euro 210 6 Canadian Dollar/U.K. Pound Sterling 169 14 Swiss Franc/Euro 98 — U.K. Pound Sterling/Euro 98 (1 ) U.K. Pound Sterling/U.S. Dollar 77 (1 ) Euro/Japanese Yen 26 — Euro/Mexican Peso 25 2 All Other 207 (1 ) Total Foreign Exchange Hedging $ 3,149 $ 49 ____________ (1) Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016 . |
Schedule of a Summary of Derivative Instruments Fair Value | The following table provides a summary of the fair value amounts of our derivative instruments: December 31, Designation of Derivatives Balance Sheet Location 2016 2015 Derivatives Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 6 $ 4 Other current liabilities (26 ) (2 ) Foreign currency options Other current assets — — Other current liabilities — (1 ) Interest rate swaps Other long-term assets 4 7 Net Designated Derivative (Liability) Asset $ (16 ) $ 8 Derivatives NOT Designated as Hedging Instruments Foreign exchange contracts – forwards Other current assets $ 82 $ 51 Other current liabilities (13 ) (8 ) Net Undesignated Derivative Asset $ 69 $ 43 Summary of Derivatives Total Derivative Assets $ 92 $ 62 Total Derivative Liabilities (39 ) (11 ) Net Derivative Asset $ 53 $ 51 |
Schedule of a Summary of Fair Value Hedges Gains (Losses) | The following tables provide a summary of gains (losses) on derivative instruments: Year Ended December 31, Derivatives in Fair Value Relationships Location of Gain (Loss) Recognized in Income Derivative Gain (Loss) Recognized in Income Hedged Item Gain (Loss) Recognized in Income 2016 2015 2014 2016 2015 2014 Interest rate contracts Interest expense $ (3 ) $ 2 $ 5 $ 3 $ (2 ) $ (5 ) |
Schedule of a Summary of Cash Flow Hedges Gains (Losses) | Year Ended December 31, Derivatives in Cash Flow Hedging Relationships Derivative Gain (Loss) Recognized in OCI (Effective Portion) Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI to Income (Effective Portion) 2016 2015 2014 2016 2015 2014 Foreign exchange contracts – forwards/options $ 20 $ 17 $ (20 ) Cost of sales $ 42 $ (23 ) $ (39 ) |
Schedule of a Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses) | The following table provides a summary of losses on non-designated derivative instruments: Year Ended December 31, Derivatives NOT Designated as Hedging Instruments Location of Derivative Loss 2016 2015 2014 Foreign exchange contracts – forwards Other expense – Currency gains (losses), net $ 172 $ 17 $ (9 ) |
Fair Value of Financial Asset46
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following table represents assets and liabilities fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs. As of December 31, 2016 2015 Assets Foreign exchange contracts - forwards $ 88 $ 55 Interest rate swaps 4 7 Deferred compensation investments in mutual funds 15 13 Total $ 107 $ 75 Liabilities Foreign exchange contracts - forwards $ 39 $ 10 Foreign currency options — 1 Deferred compensation plan liabilities 17 15 Total $ 56 $ 26 |
Schedule of 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 were as follows: December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 2,223 $ 2,223 $ 1,228 $ 1,228 Accounts receivable, net 961 961 1,068 1,068 Short-term debt 1,011 1,015 962 954 Long-term debt 5,305 5,438 6,317 6,358 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Funded Status | We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans. Over the past several years, where legally possible, we have amended our major defined benefit pension plans to freeze current benefits and eliminate benefits accruals for future service, including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. The freeze of current benefits is the primary driver of the reduction in pension service costs since 2012. In certain Non-U.S. plans we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. The Netherlands defined benefit pension plan has also been amended to reflect the Company's ability to reduce the indexation of future pension benefits within the plan in scenarios when the returns on plan assets are insufficient to cover that indexation. Prior to the freeze of current benefits, most of our defined benefit pension plans generally provided employees a benefit, depending on eligibility, calculated under a highest average pay and years of service formula. Our primary domestic defined benefit pension plans provided a benefit at the greater of (i) the highest average pay and years of service formula, (ii) the benefit calculated under a formula that provides for the accumulation of salary and interest credits during an employee's work life or (iii) the individual account balance from the Company's prior defined contribution plan (Transitional Retirement Account or TRA). Pension plan assets consist of both defined benefit plan assets and assets legally restricted to the TRA accounts. The combined investment results for these plans, along with the results for our other defined benefit plans, are shown below in the “actual return on plan assets” caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost. Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation, January 1 $ 4,126 $ 4,642 $ 6,308 $ 6,962 $ 855 $ 937 Service cost 4 4 31 32 6 7 Interest cost 184 80 195 203 32 34 Plan participants' contributions — — 4 4 1 14 Actuarial loss (gain) 114 (223 ) 636 (94 ) (75 ) (4 ) Currency exchange rate changes — — (774 ) (524 ) 4 (25 ) Plan Amendments/Curtailments — — — (17 ) — (31 ) Benefits paid/settlements (275 ) (377 ) (234 ) (255 ) (62 ) (77 ) Other 8 — (6 ) (3 ) — — Benefit Obligation, December 31 $ 4,161 $ 4,126 $ 6,160 $ 6,308 $ 761 $ 855 Change in Plan Assets: Fair value of plan assets, January 1 $ 2,806 $ 3,081 $ 5,353 $ 5,930 $ — $ — Actual return on plan assets 220 (70 ) 804 (20 ) — — Employer contributions 24 173 154 128 61 63 Plan participants' contributions — — 4 4 1 14 Currency exchange rate changes — — (694 ) (428 ) — — Benefits paid/settlements (275 ) (377 ) (234 ) (255 ) (62 ) (77 ) Other (1 ) (1 ) (3 ) (6 ) — — Fair Value of Plan Assets, December 31 $ 2,774 $ 2,806 $ 5,384 $ 5,353 $ — $ — Net Funded Status at December 31 (1) $ (1,387 ) $ (1,320 ) $ (776 ) $ (955 ) $ (761 ) $ (855 ) Amounts Recognized in the Consolidated Balance Sheets: Other long-term assets $ — $ — $ 17 $ 22 $ — $ — Accrued compensation and benefit costs (24 ) (23 ) (22 ) (26 ) (63 ) (68 ) Pension and other benefit liabilities (1,363 ) (1,297 ) (771 ) (951 ) — — Post-retirement medical benefits — — — — (698 ) (787 ) Net Amounts Recognized $ (1,387 ) $ (1,320 ) $ (776 ) $ (955 ) $ (761 ) $ (855 ) _____________ (1) Includes under-funded and un-funded plans. |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Benefit plans pre-tax amounts recognized in AOCL at December 31: Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2016 2015 2016 2015 Net actuarial loss $ 1,094 $ 1,101 $ 1,741 $ 1,966 $ 37 $ 112 Prior service credit (9 ) (11 ) (28 ) (33 ) (29 ) (34 ) Total Pre-tax Loss $ 1,085 $ 1,090 $ 1,713 $ 1,933 $ 8 $ 78 Accumulated Benefit Obligation $ 4,161 $ 4,126 $ 5,931 $ 6,068 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below: December 31, 2016 December 31, 2015 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Underfunded Plans: U.S. $ 3,820 $ 3,820 $ 2,774 $ 3,781 $ 3,781 $ 2,806 Non U.S. 4,535 4,368 4,194 4,803 4,644 4,300 Unfunded Plans: U.S. $ 341 $ 341 $ — $ 345 $ 345 $ — Non U.S. 445 436 — 421 413 — Total Underfunded and Unfunded Plans: U.S. $ 4,161 $ 4,161 $ 2,774 $ 4,126 $ 4,126 $ 2,806 Non U.S. 4,980 4,804 4,194 5,224 5,057 4,300 Total $ 9,141 $ 8,965 $ 6,968 $ 9,350 $ 9,183 $ 7,106 |
Schedule of Defined Benefit Pension Assets and Obligations by Geography | Our pension plan assets and benefit obligations at December 31, 2016 were as follows: Fair Value of Pension Plan Assets Pension Benefit Obligations Net Funded Status U.S. funded $ 2,774 $ 3,820 $ (1,046 ) U.S. unfunded — 341 (341 ) Total U.S. $ 2,774 $ 4,161 $ (1,387 ) U.K. 3,445 3,679 (234 ) Canada 661 700 (39 ) Other 1,278 1,781 (503 ) Total $ 8,158 $ 10,321 $ (2,163 ) |
Schedule of 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: Year Ended December 31, Pension Benefits U.S. Plans Non-U.S. Plans Retiree Health 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of Net Periodic Benefit Costs: Service cost $ 4 $ 4 $ 4 $ 31 $ 32 $ 31 $ 6 $ 7 $ 9 Interest cost (1) 184 80 278 195 203 262 32 34 36 Expected return on plan assets (2) (190 ) (79 ) (287 ) (249 ) (284 ) (332 ) — — — Recognized net actuarial loss 26 24 17 65 70 54 2 1 1 Amortization of prior service credit (2 ) (2 ) (2 ) (3 ) 4 (1 ) (5 ) (18 ) (43 ) Recognized settlement loss 65 88 51 1 1 — — — — Recognized curtailment gain — — — — — (1 ) — (22 ) — Defined Benefit Plans 87 115 61 40 26 13 35 2 3 Defined contribution plans 30 33 31 31 33 40 n/a n/a n/a Net Periodic Benefit Cost 117 148 92 71 59 53 35 2 3 Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: Net actuarial (gain) loss 84 (74 ) 688 76 204 447 (75 ) (4 ) 119 Prior service credit — — — — (16 ) (6 ) — (32 ) — Amortization of net actuarial loss (92 ) (112 ) (68 ) (66 ) (71 ) (54 ) (2 ) (1 ) (1 ) Amortization of net prior service credit 2 2 2 3 (4 ) 1 5 18 43 Curtailment gain — — — — — 2 — 22 — Total Recognized in Other Comprehensive Income (6 ) (184 ) 622 13 113 390 (72 ) 3 161 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 111 $ (36 ) $ 714 $ 84 $ 172 $ 443 $ (37 ) $ 5 $ 164 _____________ (1) Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296 , $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83 , $(25) and $182 for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Expected return on plan assets includes expected investment income on non-TRA assets of $356 , $388 and $437 and actual investment income (loss) on TRA assets of $83 , $(25) and $182 for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the defined benefit plans assets measured at fair value and the basis for that measurement. December 31, 2016 U.S. Plans Non-U.S. Plans Asset Class Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Cash and cash equivalents $ — $ — $ — $ — $ — $ 544 $ — $ — $ — $ 544 Equity Securities: U.S. 320 — — 68 388 266 42 — — 308 International 258 — — 160 418 358 722 — 127 1,207 Fixed Income Securities: U.S. treasury securities — 233 — — 233 — 44 — — 44 Debt security issued by government agency — 65 — — 65 — 1,654 — — 1,654 Corporate bonds — 1,052 — — 1,052 — 618 — — 618 Asset backed securities — 2 — — 2 — 1 — — 1 Derivatives — (38 ) — — (38 ) — 64 — — 64 Real estate 36 — 12 34 82 — — 121 168 289 Private equity/venture capital — — — 490 490 — 60 6 425 491 Guaranteed insurance contracts — — — — — — — 104 — 104 Other (2) 15 — — 67 82 6 54 — — 60 Total Fair Value of Plan Assets $ 629 $ 1,314 $ 12 $ 819 $ 2,774 $ 1,174 $ 3,259 $ 231 $ 720 $ 5,384 _____________ (1) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy. (2) Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. December 31, 2015 U.S. Plans Non-U.S. Plans Asset Class Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Level 1 Level 2 Level 3 Assets measured at NAV (1) Total Cash and cash equivalents $ 171 $ — $ — $ — $ 171 $ 577 $ — $ — $ — $ 577 Equity Securities: U.S. 380 — — 20 400 200 38 — — 238 International 287 1 — 157 445 1,011 40 — 112 1,163 Fixed Income Securities: — U.S. treasury securities — 216 — — 216 — 48 — — 48 Debt security issued by government agency — 156 — — 156 3 1,599 — — 1,602 Corporate bonds — 913 — — 913 3 692 — — 695 Asset backed securities — 2 — — 2 — 1 — — 1 Derivatives — (8 ) — — (8 ) — 5 — — 5 Real estate 42 — 17 39 98 — — 145 154 299 Private equity/venture capital — — — 499 499 — 66 4 480 550 Guaranteed insurance contracts — — — — — — — 120 — 120 Other (2) (103 ) (1 ) — 18 (86 ) 5 50 — — 55 Total Fair Value of Plan Assets $ 777 $ 1,279 $ 17 $ 733 $ 2,806 $ 1,799 $ 2,539 $ 269 $ 746 $ 5,353 _____________ (1) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (2) Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end. The following tables represents a roll-forward of the defined benefit plans assets measured at fair value using significant unobservable inputs (Level 3 assets): U.S. Non-U.S. Real Estate Real Estate Private Equity/Venture Capital Guaranteed Insurance Contracts Total Balance at December 31, 2014 (1) $ 22 $ 147 $ 4 $ 128 $ 279 Purchases — — — 19 19 Sales (15 ) — — (21 ) (21 ) Realized (losses) gains 1 — — 6 6 Unrealized gains (losses) 9 9 1 1 11 Currency translation — (11 ) (1 ) (13 ) (25 ) Balance at December 31, 2015 $ 17 $ 145 $ 4 $ 120 $ 269 Purchases — 1 2 2 5 Sales (3 ) (13 ) (1 ) (12 ) (26 ) Realized gains (losses) — 6 — 1 7 Unrealized gains (losses) (2 ) (5 ) (4 ) (3 ) (12 ) Currency translation — (13 ) 5 (4 ) (12 ) Balance at December 31, 2016 $ 12 $ 121 $ 6 $ 104 $ 231 _____________ (1) Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient. |
Schedule of Allocation of Plan Assets | The target asset allocations for our worldwide defined benefit pension plans were: 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Equity investments 30% 28% 34% 28% Fixed income investments 48% 45% 43% 48% Real estate 6% 5% 6% 6% Private equity 8% 9% 9% 10% Other 8% 13% 8% 8% Total Investment Strategy 100% 100% 100% 100% |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans. Year Ended December 31, 2016 Estimated 2017 U.S. Plans $ 24 $ 169 Non-U.S. Plans 154 181 Total $ 178 $ 350 Retiree Health $ 61 $ 63 |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: Pension Benefits U.S. Non-U.S. Total Retiree Health 2017 $ 852 $ 210 $ 1,062 $ 63 2018 227 216 443 64 2019 223 222 445 62 2020 225 228 453 61 2021 296 237 533 59 Years 2022-2026 1,433 1,281 2,714 261 |
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations at the plan measurement dates: Pension Benefits 2016 2015 2014 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.0 % 2.5 % 4.3 % 3.3 % 3.9 % 3.1 % Rate of compensation increase 0.2 % 2.6 % 0.2 % 2.7 % 0.2 % 2.6 % Retiree Health 2016 2015 2014 Discount rate 3.9 % 4.1 % 3.8 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Pension Benefits 2017 2016 2015 2014 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.0 % 2.5 % 4.3 % 3.3 % 3.9 % 3.1 % 4.8 % 4.2 % Expected return on plan assets 7.0 % 4.1 % 7.5 % 4.8 % 7.5 % 5.2 % 7.8 % 6.1 % Rate of compensation increase 0.2 % 2.6 % 0.2 % 2.7 % 0.2 % 2.6 % 0.2 % 2.6 % Retiree Health 2017 2016 2015 2014 Discount rate 3.9 % 4.1 % 3.8 % 4.5 % _____________ Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded . Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits. |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates were as follows: December 31, 2016 2015 Health care cost trend rate assumed for next year 7.2 % 7.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.8 % 4.9 % Year that the rate reaches the ultimate trend rate 2026 2026 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1% increase 1% decrease Effect on total service and interest cost components $ 2 $ (2 ) Effect on post-retirement benefit obligation 53 (46 ) |
Income and Other Taxes (Tables)
Income and Other Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes (pre-tax income) from continuing operations was as follows: Year Ended December 31, 2016 2015 2014 Domestic income $ 415 $ 613 $ 635 Foreign income 153 311 455 Income Before Income Taxes $ 568 $ 924 $ 1,090 |
Schedule of Components of Income Tax Expense (Benefit) | (Benefit) provision for income taxes from continuing operations were as follows: Year Ended December 31, 2016 2015 2014 Federal Income Taxes Current $ (15 ) $ (225 ) $ (58 ) Deferred (4 ) 300 150 Foreign Income Taxes Current 71 73 83 Deferred (13 ) 7 (16 ) State Income Taxes Current 15 (38 ) 21 Deferred 8 76 18 Total (Benefit) Provision $ 62 $ 193 $ 198 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows: Year Ended December 31, 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Nondeductible expenses 2.9 % 1.1 % 1.3 % Effect of tax law changes 1.2 % (1.0 )% (5.2 )% Change in valuation allowance for deferred tax assets (1.4 )% (1.6 )% (1.4 )% State taxes, net of federal benefit 3.0 % 2.2 % 2.0 % Audit and other tax return adjustments (4.1 )% 1.3 % (3.0 )% Tax-exempt income, credits and incentives (4.0 )% (1.8 )% (1.9 )% Foreign rate differential adjusted for U.S. taxation of foreign profits (1) (22.6 )% (15.3 )% (9.0 )% Other 0.9 % 1.0 % 0.4 % Effective Income Tax Rate 10.9 % 20.9 % 18.2 % _____________ (1) The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. |
Schedule of Allocation of Income Tax Expense Benefit | Total income tax expense (benefit) was allocated as follows: Year Ended December 31, 2016 2015 2014 Pre-tax income $ 62 $ 193 $ 198 Discontinued operations (1) (250 ) (134 ) 23 Common shareholders' equity: Changes in defined benefit plans 15 59 (408 ) Stock option and incentive plans, net — (18 ) (18 ) Cash flow hedges (8 ) 15 — Translation adjustments 2 — (2 ) Total Income Tax Expense (Benefit) $ (179 ) $ 115 $ (207 ) _____________ (1) Refer to Note 4 - Divestitures for additional information regarding discontinued operations. |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance at January 1 $ 222 $ 207 $ 225 Additions (Reductions) related to current year (9 ) 36 12 Additions related to prior years positions — — 9 Reductions related to prior years positions (31 ) (5 ) (23 ) Settlements with taxing authorities (1) — (6 ) (8 ) Reductions related to lapse of statute of limitations (2 ) (9 ) (6 ) Currency (2 ) (1 ) (2 ) Tax Positions assumed in Conduent Separation (13 ) — — Balance at December 31 $ 165 $ 222 $ 207 _____________ (1) Majority of settlements did not result in the utilization of cash. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows: December 31, 2016 2015 Deferred Tax Assets Research and development $ 289 $ 370 Post-retirement medical benefits 276 311 Net operating losses 407 367 Operating reserves, accruals and deferrals 190 171 Tax credit carryforwards 751 666 Deferred compensation 197 167 Pension 539 553 Other 81 138 Subtotal 2,730 2,743 Valuation allowance (416 ) (383 ) Total $ 2,314 $ 2,360 Deferred Tax Liabilities Unearned income and installment sales $ 633 $ 705 Intangibles and goodwill 200 208 Other 48 48 Total $ 881 $ 961 Total Deferred Taxes, Net $ 1,433 $ 1,399 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Treasury Stock by Class | The following provides cumulative information relating to our share repurchase programs from their inception in October 2005 through December 31, 2016 (shares in thousands). No shares were repurchased during 2016: Authorized share repurchase programs $ 8,000 Share repurchase cost $ 7,755 Share repurchase fees $ 12 Number of shares repurchased 695,230 |
Schedule of Common and Treasury Stock Changes | The following table reflects the changes in Common and Treasury stock shares (shares in thousands): Common Stock Shares Treasury Stock Shares Balance at December 31, 2013 1,210,321 22,001 Stock based compensation plans, net 13,965 — Acquisition of Treasury stock — 86,536 Cancellation of Treasury stock (100,928) (100,928) Conversion of 2014 9% Notes 996 — Balance at December 31, 2014 1,124,354 7,609 Stock based compensation plans, net 11,292 — Acquisition of Treasury stock — 115,201 Cancellation of Treasury stock (122,810 ) (122,810 ) Balance at December 31, 2015 1,012,836 — Stock based compensation plans, net 1,539 — Balance at December 31, 2016 1,014,375 — |
Schedule of Stock-based Compensation Expense, Tax Effect | Stock-based compensation expense was as follows: Year Ended December 31, 2016 2015 2014 Stock-based compensation expense, pre-tax $ 50 $ 27 $ 63 Income tax benefit recognized in earnings 19 10 24 |
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Summary of Stock-based Compensation Activity 2016 2015 2014 (shares in thousands) Shares Weighted Average Grant Date Fair Value (1) Shares Weighted Average Grant Date Fair Value (1) Shares Weighted Average Grant Date Fair Value (1) Restricted Stock Units Outstanding at January 1 2,390 $ 11.05 12,197 $ 9.50 19,079 $ 9.62 Granted 7,174 9.57 798 11.08 926 12.30 Vested (314 ) 9.62 (10,191 ) 7.86 (6,934 ) 10.33 Cancelled (548 ) 10.12 (414 ) 9.27 (874 ) 8.55 Separation of Conduent (3,144 ) 10.07 — — — — Shares granted in equity conversion 1,674 7.52 — — — — Outstanding at December 31 7,232 7.52 2,390 11.05 12,197 9.50 Performance Shares Outstanding at January 1 23,206 $ 11.67 20,721 $ 11.36 8,058 $ 9.15 Granted 5,284 9.35 9,470 10.68 16,967 12.28 Vested (33 ) 11.33 (3,268 ) 7.90 (2,404 ) 10.68 Cancelled (4,935 ) 11.84 (3,717 ) 10.74 (1,900 ) 11.07 Separation of Conduent (7,894 ) 11.09 — — — — Shares granted in equity conversion 4,595 8.50 — — — — Outstanding at December 31 20,223 8.50 23,206 11.67 20,721 11.36 Stock Options Outstanding at January 1 3,119 $ 6.87 6,115 $ 7.00 14,199 $ 6.95 Canceled/expired (392 ) 6.99 (405 ) 7.43 (215 ) 6.95 Exercised (1,225 ) 7.03 (2,591 ) 7.09 (7,869 ) 6.92 Separation of Conduent (1,502 ) 6.70 — — — — Outstanding at December 31 — — 3,119 6.87 6,115 7.00 Exercisable at December 31 — — 3,119 6.87 6,115 7.00 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2016 was as follows: Awards Unrecognized Compensation Remaining Weighted-Average Vesting Period (Years) Restricted Stock Units $ 30 2.2 Performance Shares 39 1.8 Total $ 69 |
Schedule of Aggregate intrinsic value restricted stock and performance shares compensation awards | The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows: Awards December 31, 2016 Restricted Stock Units $ 48 Performance Shares 135 |
Schedule of Vested and exercised stock based awards total intrinsic value and tax benefit realized | The total intrinsic value and actual tax benefit realized for all vested and exercised stock-based awards was as follows: December 31, 2016 December 31, 2015 December 31, 2014 Awards Total Intrinsic Value Cash Received Tax Benefit Total Intrinsic Value Cash Received Tax Benefit Total Intrinsic Value Cash Received Tax Benefit Restricted Stock Units $ 3 $ — $ 1 $ 109 $ — $ 33 $ 85 $ — $ 26 Performance Shares — — — 35 — 12 30 — 10 Stock Options 3 9 1 14 19 5 42 55 15 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other Comprehensive Loss is comprised of the following: Year Ended December 31, 2016 2015 2014 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Translation Adjustments Losses $ (344 ) $ (346 ) $ (660 ) $ (660 ) $ (736 ) $ (734 ) Unrealized (Losses) Gains: Changes in fair value of cash flow hedges gains (losses) 18 14 13 12 (20 ) (10 ) Changes in cash flow hedges reclassed to earnings (1) (40 ) (28 ) 28 13 36 26 Other losses (1 ) (1 ) (3 ) (2 ) (1 ) (1 ) Net Unrealized (Losses) Gains (23 ) (15 ) 38 23 15 15 Defined Benefit Plans Losses Net actuarial/prior service losses (118 ) (87 ) (73 ) (86 ) (1,291 ) (861 ) Prior service amortization/curtailment (2) (10 ) (6 ) (38 ) (23 ) (46 ) (29 ) Actuarial loss amortization/settlement (2) 160 109 186 126 121 83 Fuji Xerox changes in defined benefit plans, net (3) (93 ) (93 ) 21 21 40 40 Other gains (4) 202 203 116 115 106 105 Changes in Defined Benefit Plans Gains (Losses) 141 126 212 153 (1,070 ) (662 ) Other Comprehensive Loss (226 ) (235 ) (410 ) (484 ) (1,791 ) (1,381 ) Less: Other comprehensive loss attributable to noncontrolling interests (3 ) (3 ) (1 ) (1 ) (1 ) (1 ) Other Comprehensive Loss Attributable to Xerox $ (223 ) $ (232 ) $ (409 ) $ (483 ) $ (1,790 ) $ (1,380 ) _____________ (1) Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges. (2) Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information. (3) 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 in AOCL. |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCL is comprised of the following: December 31, 2016 2015 2014 Cumulative translation adjustments $ (2,274 ) $ (2,402 ) $ (1,743 ) Other unrealized (losses) gains, net (13 ) 1 (22 ) Benefit plans net actuarial losses and prior service credits (1) (2,061 ) (2,241 ) (2,394 ) Total Accumulated Other Comprehensive Loss Attributable to Xerox $ (4,348 ) $ (4,642 ) $ (4,159 ) _____________ (1) Includes our share of Fuji Xerox. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock (shares in thousands): Year Ended December 31, 2016 2015 2014 Basic Earnings per Share: Net income from continuing operations attributable to Xerox $ 616 $ 848 $ 1,029 Accrued dividends on preferred stock (24 ) (24 ) (24 ) Adjusted Net Income From Continuing Operations Available to Common Shareholders $ 592 $ 824 $ 1,005 Net loss from discontinued operations attributable to Xerox (1,093 ) (374 ) (16 ) Adjusted Net (Loss) Income Available to Common Shareholders $ (501 ) $ 450 $ 989 Weighted-average common shares outstanding 1,013,563 1,064,526 1,154,365 Basic (Loss) Earnings per Share: Continuing operations $ 0.58 $ 0.77 $ 0.87 Discontinued operations (1.07 ) (0.35 ) (0.01 ) Basic (Loss) Earnings per Share $ (0.49 ) $ 0.42 $ 0.86 Diluted Earnings per Share: Net income from continuing operations attributable to Xerox $ 616 $ 848 $ 1,029 Accrued dividends on preferred stock (24 ) (24 ) (24 ) Adjusted Net Income From Continuing Operations Available to Common Shareholders $ 592 $ 824 $ 1,005 Net loss from discontinued operations attributable to Xerox (1,093 ) (374 ) (16 ) Adjusted Net (Loss) Income Available to Common Shareholders $ (501 ) $ 450 $ 989 Weighted-average common shares outstanding 1,013,563 1,064,526 1,154,365 Common shares issuable with respect to: Stock options 694 1,294 2,976 Restricted stock and performance shares 9,722 10,404 14,256 Adjusted Weighted Average Common Shares Outstanding 1,023,979 1,076,224 1,171,597 Diluted (Loss) Earnings per Share: Continuing operations $ 0.58 $ 0.77 $ 0.86 Discontinued operations (1.07 ) (0.35 ) (0.02 ) Diluted (Loss) Earnings per Share $ (0.49 ) $ 0.42 $ 0.84 The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands): Stock Options 808 1,825 3,139 Restricted stock and performance shares 21,721 17,607 17,987 Convertible preferred stock 26,966 26,966 26,966 Total Securities 49,495 46,398 48,092 Dividends per Common Share $ 0.31 $ 0.28 $ 0.25 |
Basis of Presentation and Sum52
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)countryshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Collections on Beneficial Interests Received in sales of Accounts Receivable and Finance Receivables | $ 270,000,000 | $ 305,000,000 | ||
Bundled lease arrangements, interest rate | 0.25% | |||
Equity Method Investment, Ownership Percentage | 25.00% | |||
Number of Conduent shares distributed to Xerox Shareholders on record date | shares | 1 | |||
Number of Xerox shares needed for one Conduent share | shares | 5 | |||
Revenue, Net | [1] | $ 10,771,000,000 | 11,465,000,000 | $ 12,679,000,000 |
Out-of-Period Adjustment (non-material) | 16,000,000 | |||
Income tax expense | 62,000,000 | 193,000,000 | 198,000,000 | |
Provisions for restructuring and related costs | 264,000,000 | 27,000,000 | 106,000,000 | |
Provision for receivables | 43,000,000 | 54,000,000 | 50,000,000 | |
Provisions for obsolete and excess inventory | 28,000,000 | 30,000,000 | 26,000,000 | |
Provision for product warranty liability | 15,000,000 | 22,000,000 | 25,000,000 | |
Depreciation and obsolescence of equipment on operating leases | 276,000,000 | 286,000,000 | 297,000,000 | |
Depreciation of buildings and equipment | 148,000,000 | 151,000,000 | 179,000,000 | |
Amortization of internal use software | 73,000,000 | 83,000,000 | 88,000,000 | |
Amortization of product software | 4,000,000 | 4,000,000 | 4,000,000 | |
Amortization of acquired intangible assets | 58,000,000 | 60,000,000 | 65,000,000 | |
Amortization of customer contract costs | 4,000,000 | 6,000,000 | 6,000,000 | |
Defined pension benefits - net periodic benefit cost | 127,000,000 | 141,000,000 | 74,000,000 | |
Retiree health benefits - net periodic benefit cost | 35,000,000 | 2,000,000 | 3,000,000 | |
Sustaining engineering costs | $ 95,000,000 | 126,000,000 | $ 132,000,000 | |
Number of Countries in which Entity Operates | country | 160 | |||
Restricted Cash and Cash Equivalents | $ 179,000,000 | 156,000,000 | ||
Operating Leases, Future Minimum Payments Due | 450,000,000 | |||
Accrued | 1,256,000,000 | 1,315,000,000 | ||
Accounts Receivable, Net, Current | 961,000,000 | 1,068,000,000 | ||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | ||||
Deferred Finance Costs, Net | $ 29,000,000 | |||
Minimum [Member] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Maximum [Member] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Line of Credit [Member] | Other Noncurrent Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||||
Deferred Finance Costs, Net | $ 4,000,000 | |||
BPO [Member] | ||||
Discontinued Operation, percentage of business divested | 100.00% | |||
Accounts Receivable [Member] | ||||
Invoiced | $ 651,000,000 | 741,000,000 | ||
Accrued | 374,000,000 | 401,000,000 | ||
Allowance for Doubtful Accounts Receivable, Current | $ 64,000,000 | $ 74,000,000 | ||
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Segment Reporting - Segment Rev
Segment Reporting - Segment Revenue and Segment Profit (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Incremental Corporate costs, transferred to Conduent upon Separation | $ 80 | ||||
Revenue | [1] | 10,446 | $ 11,119 | $ 12,292 | |
Finance income | [1] | 325 | 346 | 387 | |
Total Revenues | [1] | 10,771 | 11,465 | 12,679 | |
Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets | [1],[2] | 505 | 530 | 574 | |
Interest expense | [1],[3] | 309 | 346 | 366 | |
Segment profit (loss) | [1] | 1,147 | 1,274 | 1,510 | |
Equity in net income of unconsolidated affiliates | [1] | 121 | 135 | 160 | |
Services Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 3,438 | 3,485 | 3,658 | |
Finance income | [1] | 67 | 72 | 65 | |
Total Revenues | 3,505 | [1] | 3,557 | 3,723 | |
Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets | [1],[2] | 218 | 222 | 225 | |
Interest expense | [1] | 19 | 20 | 18 | |
Segment profit (loss) | [1] | 469 | 458 | 443 | |
Equity in net income of unconsolidated affiliates | [1] | 24 | 27 | 32 | |
Document Technology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 6,458 | 7,098 | 8,044 | |
Finance income | [1] | 251 | 267 | 314 | |
Total Revenues | [1] | 6,709 | 7,365 | 8,358 | |
Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets | [1],[2] | 274 | 297 | 334 | |
Interest expense | [1] | 108 | 109 | 121 | |
Segment profit (loss) | [1] | 901 | 1,041 | 1,285 | |
Equity in net income of unconsolidated affiliates | [1] | 97 | 108 | 128 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 550 | 536 | 590 | |
Finance income | [1] | 7 | 7 | 8 | |
Total Revenues | [1] | 557 | 543 | 598 | |
Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets | [1],[2] | 13 | 11 | 15 | |
Interest expense | [1] | 182 | 217 | 227 | |
Segment profit (loss) | [1] | (223) | (225) | (218) | |
Equity in net income of unconsolidated affiliates | [1] | $ 0 | $ 0 | $ 0 | |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | ||||
[2] | Depreciation and amortization excludes amortization of intangible assets - see reconciliation below. | ||||
[3] | Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income. |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation Of Operating Profit (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reconciling items: | ||||
Segment profit (loss) | [1] | $ 1,147 | $ 1,274 | $ 1,510 |
Amortization of intangible assets | (58) | (60) | (65) | |
Equity in net income of unconsolidated affiliates | [1] | (121) | (135) | (160) |
Restructuring and related costs | (264) | (27) | (106) | |
Restructuring charges of Fuji Xerox | (3) | (4) | (3) | |
Pre-tax Income | 568 | 924 | 1,090 | |
Business transformation costs | [2] | (2) | (8) | (7) |
Non-service pension cost | [3] | $ (131) | $ (116) | $ (79) |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||
[2] | Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs. | |||
[3] | Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements. |
Segment Reporting - Revenue and
Segment Reporting - Revenue and Long-lived Assets by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Total Revenues | [1] | $ 10,771 | $ 11,465 | $ 12,679 |
Long-Lived Assets | [2] | 1,361 | 1,484 | |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 6,403 | 6,734 | 7,184 | |
Long-Lived Assets | [2] | 824 | 886 | |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 2,861 | 3,155 | 3,649 | |
Long-Lived Assets | [2] | 359 | 435 | |
Other areas | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 1,507 | 1,576 | $ 1,846 | |
Long-Lived Assets | [2] | $ 178 | $ 163 | |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||
[2] | Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Equipment on operating leases, net, (iii) Internal use software, net and (iv) Product software, |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)business | Dec. 31, 2014USD ($)business | |
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 30 | $ 13 | $ 34 |
Business Combination, Acquisition of 100 Percent of acquired company | 100.00% | 100.00% | 100.00% |
Revenue of Acquiree since Acquisition Date, Actual | $ 14 | ||
Goodwill, Expected Tax Deductible Percentage | 100.00% | ||
Accounts/finance receivables | $ 2 | ||
Goodwill | 19 | ||
Other assets | 3 | ||
Total Assets Acquired | 34 | ||
Liabilities assumed | 4 | ||
Global Imaging Systems, Equipment dealers [Domain] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 30 | ||
Equipment Dealer, Southern U.S. [Domain] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 22 | ||
Prior year acquisitions [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Revenue of Acquiree since Acquisition Date, Actual | 10 | $ 3 | |
Acquisitions made current year minus two years [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Revenue of Acquiree since Acquisition Date, Actual | $ 32 | 30 | 2 |
Document Technology [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13 | $ 12 | |
Number of Businesses Acquired (in businesses) | business | 2 | 1 | |
Customer relationships [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset | 10 years | ||
Intangible assets: | $ 7 | ||
Trademarks [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset | 20 years | ||
Intangible assets: | $ 2 | ||
Non-compete agreements [Member] | |||
Schedule of Business Acquisitions, by Acquisition [Line Items] | |||
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset | 4 years | ||
Intangible assets: | $ 1 |
Divestitures (Details)
Divestitures (Details) $ in Millions | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Sep. 30, 2014USD ($) | May 31, 2014USD ($) | Jan. 31, 2014USD ($) | Dec. 31, 2016USD ($)country | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2016countryEmployees | Dec. 31, 2016USD ($)country | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2017USD ($) | Mar. 04, 2016USD ($) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Separation costs | $ 159 | ||||||||||||||||||||
Transition services, Xerox to Conduent, number of years post separation | 1 year | ||||||||||||||||||||
Disposal Group, Including Discontinued Operations, Net Assets | $ 3,445 | $ 3,445 | |||||||||||||||||||
Cash Distribution, Conduent to Xerox - prior to distribution date | $ 1,800 | ||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 30 | $ 13 | $ 34 | ||||||||||||||||||
Proceeds from sale of businesses | $ 0 | 0 | 10 | ||||||||||||||||||
Number of Countries in which Entity Operates | country | 160 | 160 | |||||||||||||||||||
Loss on disposal | $ 0 | 101 | 182 | ||||||||||||||||||
Revenue | 6,355 | 7,223 | 8,250 | ||||||||||||||||||
Costs and Expenses | 10,203 | 10,541 | 11,589 | ||||||||||||||||||
Income (loss) from operations | (1,343) | (407) | 189 | ||||||||||||||||||
Net income (loss) before income taxes | (1,343) | (508) | 7 | ||||||||||||||||||
Income tax benefit (expense) - discontinued operations | [1] | 250 | 134 | (23) | |||||||||||||||||
Loss from discontinued operations, net of tax | (1,093) | (374) | (16) | ||||||||||||||||||
Due from Conduent | $ 127 | $ 0 | 127 | 0 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 0 | 7,185 | 0 | 7,185 | |||||||||||||||||
Total Assets of Discontinued Operations | 1,002 | 1,618 | 1,002 | 1,618 | |||||||||||||||||
Liabilities of discontinued operations | 1,002 | 1,627 | 1,002 | 1,627 | |||||||||||||||||
Liabilities of discontinued operations | 0 | 1,122 | 0 | 1,122 | |||||||||||||||||
Depreciation of buildings and equipment | 126 | 145 | |||||||||||||||||||
Amortization of internal use software | 49 | 51 | 52 | ||||||||||||||||||
Disposal group, amortization of product software | 65 | ||||||||||||||||||||
Amortization of acquired intangible assets | 280 | 250 | 250 | ||||||||||||||||||
Amortization of customer contract costs | 108 | 122 | |||||||||||||||||||
Operating lease rent expense | 378 | 385 | |||||||||||||||||||
Defined contribution plans | 34 | 31 | |||||||||||||||||||
Disposal Group, Including Discontinued Operation, Interest Expense | [2] | 13 | 8 | 11 | |||||||||||||||||
Asset impairments | 0 | 7 | 5 | ||||||||||||||||||
Interest expense | 400 | ||||||||||||||||||||
Cost of additions to land, buildings, and equipment | 150 | 126 | 144 | ||||||||||||||||||
Cost of additions to internal use software | 39 | 26 | 26 | ||||||||||||||||||
Customer-related deferred set-up transition and inducement costs | 62 | 55 | 55 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Adjustment related to Preferred Stock | 142 | 142 | |||||||||||||||||||
Disposal Group, Including Discontinued Operations, Adjustment related to Retained Earnings | 3,829 | 3,829 | |||||||||||||||||||
Disposal Group, Including Discontinued Operations, Adjustment related to Accumulated Other Comprehensive Loss | 526 | 526 | |||||||||||||||||||
BPO [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from Issuance Initial Public Offering | 2,000 | ||||||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 1,900 | ||||||||||||||||||||
RSA Medical LLC [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 141 | ||||||||||||||||||||
Date of acquisition | Sep. 30, 2015 | ||||||||||||||||||||
ITO [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from sale of businesses | $ 940 | ||||||||||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 930 | ||||||||||||||||||||
Capital lease obligations and pension liabilities | 85 | 85 | |||||||||||||||||||
Discontinued Operations Restructuring, Number of Employees | Employees | 9,600 | ||||||||||||||||||||
Number of Countries in which Entity Operates | country | 42 | ||||||||||||||||||||
Loss on disposal | $ 101 | 0 | (101) | 181 | |||||||||||||||||
Discontinue Operations, Additional Tax Expense | $ 44 | ||||||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (160) | ||||||||||||||||||||
Payment/adjustment to sales price | $ 28 | ||||||||||||||||||||
Revenue | 0 | 619 | 1,320 | ||||||||||||||||||
Income (loss) from operations | 0 | 104 | 74 | ||||||||||||||||||
Net income (loss) before income taxes | 0 | 3 | (107) | ||||||||||||||||||
Income tax benefit (expense) - discontinued operations | 0 | (81) | (5) | ||||||||||||||||||
Additional Pre-tax loss on disposal and adjustment to final sales price | $ 52 | ||||||||||||||||||||
Loss from discontinued operations, net of tax | 0 | (78) | (112) | ||||||||||||||||||
Xerox Audio Visual Solutions, Inc. [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Loss on disposal | $ 1 | ||||||||||||||||||||
Truckload Management Services [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from sale of businesses | $ 15 | ||||||||||||||||||||
Loss on disposal | 1 | ||||||||||||||||||||
All Other Discontinued Operations [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Loss on disposal | (1) | ||||||||||||||||||||
Revenue | 45 | ||||||||||||||||||||
Income (loss) from operations | (1) | ||||||||||||||||||||
Net income (loss) before income taxes | (2) | ||||||||||||||||||||
Income tax benefit (expense) - discontinued operations | (1) | ||||||||||||||||||||
Loss from discontinued operations, net of tax | (3) | ||||||||||||||||||||
Conduent [Domain] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 390 | 140 | 390 | 140 | |||||||||||||||||
Loss on disposal | 0 | 0 | 0 | ||||||||||||||||||
Revenue | 6,355 | 6,604 | 6,885 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 5,456 | 5,923 | 5,749 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | 2,065 | [3] | 1,192 | 1,020 | |||||||||||||||||
Costs and Expenses | 7,521 | 7,115 | 6,769 | ||||||||||||||||||
Income (loss) from operations | (1,343) | (511) | 116 | ||||||||||||||||||
Net income (loss) before income taxes | (1,343) | (511) | 116 | ||||||||||||||||||
Income tax benefit (expense) - discontinued operations | 250 | 215 | (17) | ||||||||||||||||||
Loss from discontinued operations, net of tax | (1,093) | (296) | 99 | ||||||||||||||||||
Accounts receivable, net | 1,287 | 1,251 | 1,287 | 1,251 | |||||||||||||||||
Due from Conduent | 239 | 227 | 239 | 227 | |||||||||||||||||
Land, buildings and equipment, net | 283 | 279 | 283 | 279 | |||||||||||||||||
Intangible assets, net | 1,144 | 1,425 | 1,144 | 1,425 | |||||||||||||||||
Goodwill | 3,889 | 4,872 | 3,889 | 4,872 | |||||||||||||||||
Other long-term assets | 477 | 609 | 477 | 609 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 5,793 | 7,185 | 5,793 | 7,185 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets | 7,709 | 8,803 | 7,709 | 8,803 | |||||||||||||||||
Total Assets of Discontinued Operations | 1,916 | 1,618 | 1,916 | 1,618 | |||||||||||||||||
Current portion of long-term debt | 28 | 23 | 28 | 23 | |||||||||||||||||
Accounts payable | 159 | 272 | 159 | 272 | |||||||||||||||||
Accrued pension and benefit costs | 284 | 245 | 284 | 245 | |||||||||||||||||
Unearned income | 208 | 226 | 208 | 226 | |||||||||||||||||
Other current liabilities | 742 | 861 | 742 | 861 | |||||||||||||||||
Liabilities of discontinued operations | 1,421 | 1,627 | 1,421 | 1,627 | |||||||||||||||||
Liabilities of discontinued operations | 2,843 | 1,122 | 2,843 | 1,122 | |||||||||||||||||
Pension and other benefit liabilities | 173 | 153 | 173 | 153 | |||||||||||||||||
Other long-term liabilities | 757 | 932 | 757 | 932 | |||||||||||||||||
Total Liabilities of Discontinued Operations | 4,264 | 2,749 | 4,264 | 2,749 | |||||||||||||||||
Depreciation of buildings and equipment | 130 | ||||||||||||||||||||
Disposal group, amortization of product software | 61 | $ 58 | |||||||||||||||||||
Amortization of customer contract costs | 93 | ||||||||||||||||||||
Operating lease rent expense | 389 | ||||||||||||||||||||
Defined contribution plans | 35 | ||||||||||||||||||||
Asset impairments | 935 | [4] | 0 | $ 0 | |||||||||||||||||
Interest expense | 18 | ||||||||||||||||||||
Intellinex LLC [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 28 | ||||||||||||||||||||
Date of acquisition | Jan. 31, 2015 | ||||||||||||||||||||
Consilience Software, Inc. [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 25 | ||||||||||||||||||||
Date of acquisition | Sep. 30, 2014 | ||||||||||||||||||||
ISG Holdings, Inc. [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 225 | ||||||||||||||||||||
Date of acquisition | May 31, 2014 | ||||||||||||||||||||
Invoco Holding GmbH [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 54 | ||||||||||||||||||||
Date of acquisition | Jan. 31, 2014 | ||||||||||||||||||||
Senior Debt Obligations [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Unsecured Debt | $ 1,000 | $ 1,000 | |||||||||||||||||||
Long-term Debt [Member] | Conduent [Domain] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Liabilities of discontinued operations | 1,913 | $ 37 | $ 1,913 | 37 | |||||||||||||||||
Conduent cash paid to Xerox, for Xerox debt repayment [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash Distribution, Conduent to Xerox - prior to distribution date | $ 1,000 | ||||||||||||||||||||
Balance due at closing [Member] | ITO [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Loss on disposal | $ 24 | ||||||||||||||||||||
[1] | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. | ||||||||||||||||||||
[2] | Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016. | ||||||||||||||||||||
[3] | 2016 amount excludes $159 of Separation related costs and $18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations. | ||||||||||||||||||||
[4] | Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued | $ 1,256 | $ 1,315 | |||
Accounts receivable, net | 961 | 1,068 | |||
Deferred Proceeds Receivable From Sales Of Accounts Receivable | 48 | 61 | |||
Accounts receivable sold, derecognized and uncollected at balance sheet date | 531 | 524 | |||
Accounts receivable sales | 2,267 | 2,142 | $ 2,563 | ||
Deferred proceeds | 233 | 247 | 387 | ||
Loss on sale of accounts receivable | 16 | 13 | 15 | ||
Estimated increase (decrease) to operating cash flows | (156) | (286) | (433) | $ 877 | |
Accounts Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Invoiced | 651 | 741 | |||
Accrued | 374 | 401 | |||
Allowance for doubtful accounts | (64) | (74) | |||
Estimated increase (decrease) to operating cash flows | [1] | $ 30 | $ 62 | $ (64) | |
[1] | Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency. |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||||
Gross receivables | $ 4,380 | $ 4,683 | ||
Unearned income | (526) | (577) | ||
Subtotal | 3,854 | 4,106 | [1] | |
Residual values | 0 | 0 | ||
Allowance for doubtful accounts | (110) | (118) | $ (131) | |
Finance Receivables, Net | 3,744 | 3,988 | ||
Less: Billed portion of finance receivables, net | 90 | 97 | ||
Less: Current portion of finance receivables not billed, net | 1,256 | 1,315 | ||
Finance Receivables Due After One Year, Net | 2,398 | 2,576 | ||
Billed Contracts Receivable | 90 | |||
Finance receivables contractual maturity, current | 1,628 | |||
Finance receivables contractual maturity, in two years | 1,225 | |||
Finance receivables contractual maturities, in three years | 855 | |||
Finance receivables contractual maturities, in four years | 485 | |||
Finance receivables contractual maturities, in five years | 175 | |||
Finance receivables contractual maturities, thereafter | 12 | |||
Total contractual maturities | $ 4,380 | $ 4,683 | ||
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. |
Finance Receivables, Net - Sale
Finance Receivables, Net - Sales of Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net carrying value (NCV) sold | $ 676 | $ 682 | ||||
Allowance included in NCV | 17 | 18 | ||||
Cash proceeds received | 635 | 630 | ||||
Beneficial interests received | $ 86 | 101 | ||||
Finance Receivables Sold and Derecognized | $ 76 | $ 238 | ||||
Finance receivables sold and derecognized sales value | 81 | 256 | ||||
Net cash received from sales of finance receivables net of beneficial interest, fees and expenses | [1] | 0 | 0 | $ 0 | 1,256 | |
Impact from prior sales of finance receivables | [2] | (186) | (342) | (527) | (437) | |
Collections on beneficial interest | 24 | 46 | 79 | |||
Estimated (Decrease) Increase to Operating Cash Flows | (156) | (286) | (433) | 877 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | 35 | 36 | ||||
Document Technology [Member] | ||||||
Beneficial interests received | $ 24 | 38 | ||||
Finance Receivable Beneficial Interest Weighted Average Life | 2 years | |||||
Document Technology [Member] | Other Current Assets [Member] | ||||||
Beneficial interest from sale of finance receivables held by bankruptcy remote subsidiaries | $ 13 | 30 | ||||
Financing Receivable [Member] | ||||||
Collections on beneficial interest | $ 30 | $ 56 | $ 94 | $ 58 | ||
[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, Net - Allo
Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Finance receivables lease portfolio -low - years | 2 years | ||
Finance lease portfolio average maturity - high - years | 3 years | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Financing Receivable, Allowance for Credit Losses | $ 118 | $ 131 | |
Provision | 24 | 28 | |
Charge-offs | (35) | (36) | |
Recoveries and other | [1] | 3 | (5) |
Financing Receivable, Allowance for Credit Losses | 110 | 118 | |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 3,854 | 4,106 |
Allowance for credit losses not included in the impairment evaluation | 110 | 118 | |
United States | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Financing Receivable, Allowance for Credit Losses | [3] | 54 | 51 |
Provision | [3] | 10 | 11 |
Charge-offs | [3] | (12) | (8) |
Recoveries and other | [1],[3] | 3 | 0 |
Financing Receivable, Allowance for Credit Losses | [3] | 55 | 54 |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 2,138 | 2,174 |
Canada | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Financing Receivable, Allowance for Credit Losses | 17 | 20 | |
Provision | 3 | 6 | |
Charge-offs | (8) | (10) | |
Recoveries and other | [1] | 4 | 1 |
Financing Receivable, Allowance for Credit Losses | 16 | 17 | |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 378 | 365 |
Europe | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Financing Receivable, Allowance for Credit Losses | 45 | 58 | |
Provision | 11 | 10 | |
Charge-offs | (15) | (17) | |
Recoveries and other | [1] | (4) | (6) |
Financing Receivable, Allowance for Credit Losses | 37 | 45 | |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 1,286 | 1,509 |
Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Financing Receivable, Allowance for Credit Losses | [3],[4] | 2 | 2 |
Provision | [3],[4] | 0 | 1 |
Charge-offs | [3],[4] | 0 | (1) |
Recoveries and other | [1],[3],[4] | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | [3],[4] | 2 | 2 |
Financing Receivable, Collectively Evaluated for Impairment | [2],[4] | $ 52 | $ 58 |
[1] | Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. | ||
[2] | Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively. | ||
[3] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | ||
[4] | Includes developing market countries and smaller units. |
Finance Receivables, Net - Fina
Finance Receivables, Net - Finance Receivables Credit Quality Indicators (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | |||
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% | ||||
Total Finance Receivables | $ 3,854 | $ 4,106 | |||
Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 1,953 | 2,175 | |||
Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 1,454 | 1,425 | |||
Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 447 | 506 | |||
United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 2,138 | 2,174 | |||
United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 1,105 | 1,215 | |||
United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 729 | 640 | |||
United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 304 | 319 | |||
Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 378 | 365 | |||
Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 199 | 215 | |||
Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 124 | 112 | |||
Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 55 | 38 | |||
Total Europe | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 1,286 | 1,509 | |||
Total Europe | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 614 | 704 | |||
Total Europe | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 586 | 657 | |||
Total Europe | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 86 | 148 | |||
France | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 454 | 511 | |||
France | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 181 | 203 | |||
France | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 222 | 207 | |||
France | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 51 | 101 | |||
UK Ireland | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 253 | 329 | |||
UK Ireland | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 189 | 235 | |||
UK Ireland | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 63 | 91 | |||
UK Ireland | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 1 | 3 | |||
Central | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [2] | 349 | [3] | 417 | |
Central | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [2] | 182 | 206 | ||
Central | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [2] | 148 | 186 | ||
Central | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [2] | 19 | 25 | ||
Southern | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [4] | 181 | 191 | ||
Southern | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [4] | 36 | 36 | ||
Southern | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [4] | 131 | 138 | ||
Southern | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [4] | 14 | 17 | ||
Nordic | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [5] | 49 | 61 | ||
Nordic | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [5] | 26 | 24 | ||
Nordic | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [5] | 22 | 35 | ||
Nordic | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | [5] | 1 | 2 | ||
Other | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 52 | 58 | |||
Other | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 35 | 41 | |||
Other | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 15 | 16 | |||
Other | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 2 | 1 | |||
Finance and other services [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 618 | 571 | |||
Finance and other services [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 181 | 195 | |||
Finance and other services [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 342 | 285 | |||
Finance and other services [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 95 | 91 | |||
Finance and other services [Member] | Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 112 | 99 | |||
Finance and other services [Member] | Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 54 | 55 | |||
Finance and other services [Member] | Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 43 | 35 | |||
Finance and other services [Member] | Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 15 | 9 | |||
Government and education [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 608 | 630 | |||
Government and education [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 543 | 575 | |||
Government and education [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 57 | 48 | |||
Government and education [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 8 | 7 | |||
Government and education [Member] | Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 60 | 68 | |||
Government and education [Member] | Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 52 | 59 | |||
Government and education [Member] | Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 6 | 7 | |||
Government and education [Member] | Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 2 | 2 | |||
Graphic arts [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 347 | 364 | |||
Graphic arts [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 138 | 145 | |||
Graphic arts [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 102 | 92 | |||
Graphic arts [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 107 | 127 | |||
Graphic arts [Member] | Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 100 | 101 | |||
Graphic arts [Member] | Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 39 | 45 | |||
Graphic arts [Member] | Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 37 | 35 | |||
Graphic arts [Member] | Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 24 | 21 | |||
Industrial [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 184 | 173 | |||
Industrial [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 82 | 89 | |||
Industrial [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 78 | 62 | |||
Industrial [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 24 | 22 | |||
Industrial [Member] | Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 40 | 38 | |||
Industrial [Member] | Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 21 | 23 | |||
Industrial [Member] | Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 13 | 12 | |||
Industrial [Member] | Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 6 | 3 | |||
Healthcare [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 143 | 155 | |||
Healthcare [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 79 | 90 | |||
Healthcare [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 47 | 46 | |||
Healthcare [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 17 | 19 | |||
Other [Member] | United States | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 238 | 281 | |||
Other [Member] | United States | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 82 | 121 | |||
Other [Member] | United States | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 103 | 107 | |||
Other [Member] | United States | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 53 | 53 | |||
Other [Member] | Canada | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 66 | 59 | |||
Other [Member] | Canada | Investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 33 | 33 | |||
Other [Member] | Canada | Non-investment Grade [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | 25 | 23 | |||
Other [Member] | Canada | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Finance Receivables | $ 8 | $ 3 | |||
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | ||||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | ||||
[3] | Switzerland, Germany, Austria, Belgium and Holland. | ||||
[4] | Italy, Greece, Spain and Portugal. | ||||
[5] | Sweden, Norway, Denmark and Finland. |
Finance Receivables, Net - Fi63
Finance Receivables, Net - Finance Receivables Aging Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | $ 90 | $ 97 | |||
Billed | 3,744 | 3,988 | |||
Total Finance Receivables | 3,854 | 4,106 | [1] | ||
Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 94 | 102 | |||
Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 3,760 | ||||
Billed | 4,004 | ||||
United States | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 2,138 | 2,174 | [1] | ||
United States | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 618 | 571 | [1] | ||
United States | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 608 | 630 | [1] | ||
United States | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 347 | 364 | [1] | ||
United States | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 184 | 173 | [1] | ||
United States | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 143 | 155 | [1] | ||
United States | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 238 | 281 | [1] | ||
United States | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 71 | 77 | |||
United States | Billed Revenues [Member] | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 17 | 14 | |||
United States | Billed Revenues [Member] | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 17 | 17 | |||
United States | Billed Revenues [Member] | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 14 | 15 | |||
United States | Billed Revenues [Member] | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 6 | 7 | |||
United States | Billed Revenues [Member] | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 5 | 6 | |||
United States | Billed Revenues [Member] | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 12 | 18 | |||
United States | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 2,067 | ||||
Billed | 2,097 | ||||
United States | Unbilled Revenues [Member] | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 601 | ||||
Billed | 557 | ||||
United States | Unbilled Revenues [Member] | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 591 | ||||
Billed | 613 | ||||
United States | Unbilled Revenues [Member] | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 333 | ||||
Billed | 349 | ||||
United States | Unbilled Revenues [Member] | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 178 | ||||
Billed | 166 | ||||
United States | Unbilled Revenues [Member] | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 138 | ||||
Billed | 149 | ||||
United States | Unbilled Revenues [Member] | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 226 | ||||
Billed | 263 | ||||
Canada | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 378 | 365 | [1] | ||
Canada | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 112 | 99 | [1] | ||
Canada | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 60 | 68 | [1] | ||
Canada | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 100 | 101 | [1] | ||
Canada | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 40 | 38 | [1] | ||
Canada | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 66 | 59 | [1] | ||
Canada | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 3 | 3 | |||
Canada | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 375 | ||||
Billed | 362 | ||||
Total Europe | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 1,286 | 1,509 | [1] | ||
Total Europe | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 17 | 20 | |||
Total Europe | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 1,269 | ||||
Billed | 1,489 | ||||
France | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 454 | 511 | [1] | ||
France | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 3 | 0 | |||
France | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 451 | ||||
Billed | 511 | ||||
UK Ireland | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 253 | 329 | [1] | ||
UK Ireland | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 3 | 1 | |||
UK Ireland | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 250 | ||||
Billed | 328 | ||||
Central | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | [2] | 349 | [3] | 417 | [1] |
Central | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 3 | [3] | 5 | [2] | |
Central | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | [3] | 346 | |||
Billed | [3] | 412 | |||
Southern | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | [4] | 181 | 191 | [1] | |
Southern | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | [4] | 7 | 13 | ||
Southern | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | [4] | 174 | |||
Billed | [4] | 178 | |||
Nordic | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | [5] | 49 | 61 | [1] | |
Nordic | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | [5] | 1 | 1 | ||
Nordic | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | [5] | 48 | |||
Billed | [5] | 60 | |||
Other | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Finance Receivables | 52 | 58 | [1] | ||
Other | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Billed | 3 | 2 | |||
Other | Unbilled Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Unbilled Receivables, Not Billable | 49 | ||||
Billed | 56 | ||||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 71 | 74 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 52 | 57 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 13 | 10 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 10 | 12 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 13 | 12 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 4 | 5 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 4 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | United States | Billed Revenues [Member] | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 9 | 14 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Canada | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 3 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Total Europe | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 13 | 13 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | France | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 0 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | UK Ireland | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 2 | 1 | |||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Central | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [3] | 2 | 3 | ||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Southern | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [4] | 5 | 8 | ||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Nordic | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [5] | 1 | 1 | ||
Finance Receivable, Recorded Investment, Current 1 to 30 Days Past Invoice Date [Member] | Other | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 1 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 15 | 13 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 12 | 9 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 2 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 4 | 1 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 2 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 1 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 1 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 2 | 2 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Canada | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Total Europe | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 3 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | France | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | UK Ireland | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 0 | |||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Central | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [3] | 1 | 1 | ||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Southern | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [4] | 1 | 2 | ||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Nordic | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [5] | 0 | 0 | ||
Finance Receivables, Recorded Investment, 1 to 60 Days Past Due [Member] | Other | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 1 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 8 | 15 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 7 | 11 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 2 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 3 | 4 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 1 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 1 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 1 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | United States | Billed Revenues [Member] | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 2 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Canada | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Total Europe | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 4 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | France | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | UK Ireland | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Central | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [3] | 0 | 1 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Southern | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [4] | 1 | 3 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Nordic | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [5] | 0 | 0 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due [Member] | Other | Billed Revenues [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 0 | 0 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 97 | 138 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 56 | 82 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Finance and other services [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 11 | 14 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Government and education [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 25 | 37 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Graphic arts [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 5 | 8 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Industrial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 5 | 7 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Healthcare [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 5 | 9 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | United States | Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 5 | 7 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Canada | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 8 | 9 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Total Europe | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 33 | 47 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | France | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 20 | 25 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | UK Ireland | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | 1 | 1 | |||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Central | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [3] | 5 | 7 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Southern | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [4] | 6 | 10 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Nordic | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | [5] | 1 | 4 | ||
Finance Receivables, Recorded Investment, Greater than 60 Days Past Due and Still Accruing [Member] | Other | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed | $ 0 | $ 0 | |||
[1] | In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation. | ||||
[2] | Switzerland, Germany, Austria, Belgium and Holland. | ||||
[3] | Switzerland, Germany, Austria, Belgium and Holland. | ||||
[4] | Italy, Greece, Spain and Portugal. | ||||
[5] | Sweden, Norway, Denmark and Finland. |
Inventories and Equipment on 64
Inventories and Equipment on Operating Leases, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventories, net [Abstract] | |||
Finished goods | $ 713 | $ 751 | |
Work-in-process | 47 | 51 | |
Raw materials | 81 | 99 | |
Total Inventories | 841 | 901 | |
Inventories and Equipment on Operating Lease, Net [Abstract] | |||
Equipment on operating leases | 1,468 | 1,478 | |
Accumulated depreciation | (993) | (983) | |
Equipment on Operating Leases, Net | 475 | 495 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating Leases, Income Statement, Contingent Revenue | 132 | $ 139 | $ 149 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
2,017 | 319 | ||
2,018 | 221 | ||
2,019 | 142 | ||
2,020 | 76 | ||
2,021 | 26 | ||
Thereafter | $ 3 | ||
Minimum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Property, plant and equipment depreciable lives | 3 years | ||
Equipment on operating lease length of lease (years) | 1 year | ||
Maximum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Property, plant and equipment depreciable lives | 4 years | ||
Equipment on operating lease length of lease (years) | 3 years |
Land, Buildings, Equipment an65
Land, Buildings, Equipment and Software, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | $ 3,135 | $ 3,249 |
Accumulated depreciation | (2,475) | (2,532) |
Land, Buildings and Equipment, Net | 660 | 717 |
Land [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 20 | 21 |
Building and building equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 911 | 919 |
Leasehold Improvements [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 219 | 244 |
Plant machinery [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 1,225 | 1,274 |
Office furniture and equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 657 | 700 |
Other [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | 70 | 63 |
Construction in progress [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Land, buildings and equipment, gross | $ 33 | $ 28 |
Minimum [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Building and building equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Minimum [Member] | Plant machinery [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Office furniture and equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Other [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 4 years | |
Maximum [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 4 years | |
Maximum [Member] | Building and building equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Maximum [Member] | Plant machinery [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years | |
Maximum [Member] | Office furniture and equipment [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Maximum [Member] | Other [Member] | ||
Property, Plant, Equipment and Software [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years |
Land, Buildings, Equipment an66
Land, Buildings, Equipment and Software, Net - Depreciation Expense, Operating Lease Rent Expense, Minimum Operating Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 148 | $ 151 | $ 179 |
Operating lease rent expense | 157 | 164 | $ 175 |
Capital Leased Assets, Gross | 31 | $ 39 | |
Continuing Operations [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 124 | ||
2,018 | 94 | ||
2,019 | 72 | ||
2,020 | 53 | ||
2,021 | 40 | ||
Thereafter | $ 71 |
Land, Buildings, Equipment an67
Land, Buildings, Equipment and Software, Net - Internal Use Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Land, Buildings, Equipment and Softward [Abstract] | |||
Internal use software | $ 45 | $ 64 | $ 57 |
Internal use software | $ 218 | $ 264 | |
Internal Use and Product Software, Useful Lives Minimum | 3 years | ||
Internal Use and Product Software, Useful Lives Maximum | 7 years |
Investment in Affiliates, at 68
Investment in Affiliates, at Equity (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in Affiliates, at Equity | $ 1,388 | $ 1,382 | ||
Total Equity in Net Income of Unconsolidated Affiliates | [1] | $ 121 | 135 | $ 160 |
Equity Method Investment, Ownership Percentage | 25.00% | |||
Implied Investment in Affiliates - Fuji Xerox | $ 1,406 | |||
Fuji Xerox [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in Affiliates, at Equity | 1,313 | 1,315 | ||
Total Equity in Net Income of Unconsolidated Affiliates | 108 | 117 | 147 | |
Other [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in Affiliates, at Equity | 75 | 67 | ||
Total Equity in Net Income of Unconsolidated Affiliates | $ 13 | $ 18 | $ 13 | |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). |
Investment in Affiliates, at 69
Investment in Affiliates, at Equity - Condensed Financial Data for Fuji Xerox Unconsolidated Affiliate (Details) - Fuji Xerox [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Operations | |||
Revenues | $ 10,161 | $ 9,925 | $ 11,112 |
Costs and expenses | 9,486 | 9,198 | 10,242 |
Income before income taxes | 675 | 727 | 870 |
Income tax expense | 217 | 233 | 262 |
Net Income | 458 | 494 | 608 |
Less: Net income - noncontrolling interests | 7 | 7 | 4 |
Net Income - Fuji Xerox | 451 | 487 | 604 |
Assets: | |||
Current assets | 4,464 | 4,585 | 4,801 |
Long-term assets | 4,734 | 4,946 | 4,742 |
Total Assets | 9,198 | 9,531 | 9,543 |
Liabilities and Equity: | |||
Current liabilities | 2,679 | 2,808 | 2,982 |
Long-term debt | 283 | 584 | 580 |
Other long-term liabilities | 583 | 511 | 482 |
Noncontrolling interests | 31 | 31 | 30 |
Fuji Xerox shareholders' equity | 5,622 | 5,597 | 5,469 |
Total Liabilities and Equity | $ 9,198 | $ 9,531 | $ 9,543 |
Investment in Affiliates, at 70
Investment in Affiliates, at Equity - Investment in Affiliate Exchange Rates (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Summary of operations, weighted average rate | 108.68 | 121.01 | 105.58 |
Balance sheet, year-end rate | 116.53 | 120.49 | 119.46 |
Investment in Affiliates, at 71
Investment in Affiliates, at Equity - Other Transactions with Fuji Xerox (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Dividends received from Fuji Xerox | $ 47 | $ 51 | $ 58 |
Royalty revenue earned | 107 | 102 | 115 |
Inventory purchases from Fuji Xerox | 1,641 | 1,728 | 1,831 |
Inventory sales to Fuji Xerox | 80 | 108 | 120 |
R&D payments received from Fuji Xerox | 1 | 1 | 1 |
R&D payments paid to Fuji Xerox | 13 | 7 | $ 17 |
Fuji Xerox [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net amounts due to Fuji Xerox | $ 273 | $ 307 |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | $ 3,951 | $ 4,021 |
Foreign currency translation | (183) | (76) |
Goodwill acquired during period | 19 | |
Ending Balance, Goodwill | 3,787 | 3,951 |
Services Segment [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | 1,630 | 1,668 |
Foreign currency translation | (90) | (38) |
Ending Balance, Goodwill | 1,540 | 1,630 |
Document Technology Segment [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | 2,321 | 2,353 |
Foreign currency translation | (93) | (38) |
Ending Balance, Goodwill | 2,247 | 2,321 |
Imagetek Office Systems [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 10 | |
Imagetek Office Systems [Member] | Services Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 0 | |
Imagetek Office Systems [Member] | Document Technology Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 10 | |
Other Immaterial Acquisitions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 9 | 6 |
Other Immaterial Acquisitions [Member] | Services Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 0 | 0 |
Other Immaterial Acquisitions [Member] | Document Technology Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | $ 9 | $ 6 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets, Net - Intangible Assets by Major Class (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 896 | $ 899 | |
Accumulated Amortization | 606 | 559 | |
Net Amount | 290 | 340 | |
Amortization of Intangible Assets | 58 | 60 | $ 65 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,017 | 58 | ||
2,018 | 57 | ||
2,019 | 39 | ||
2,020 | 18 | ||
2,021 | $ 18 | ||
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 13 years | ||
Gross Carrying Amount | $ 508 | 509 | |
Accumulated Amortization | 410 | 378 | |
Net Amount | $ 98 | 131 | |
Distribution network [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 25 years | ||
Gross Carrying Amount | $ 123 | 123 | |
Accumulated Amortization | 84 | 79 | |
Net Amount | $ 39 | 44 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 20 years | ||
Gross Carrying Amount | $ 250 | 248 | |
Accumulated Amortization | 107 | 95 | |
Net Amount | $ 143 | 153 | |
Technology, patents and non-compete | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Useful Life | 13 years | ||
Gross Carrying Amount | $ 15 | 19 | |
Accumulated Amortization | 5 | 7 | |
Net Amount | 10 | $ 12 | |
Services Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | 43 | ||
Document Technology Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | $ 247 |
Restructuring and Asset Impai74
Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Three-year strategic cost transformation program | 3 years | ||||
Restructuring reserve [Roll Forward] | |||||
Balance at beginning of period | $ 19 | $ 84 | $ 99 | ||
Restructuring provision | 252 | 44 | 123 | ||
Reversals of prior accruals | (22) | (17) | (17) | ||
Net current period restructuring charges | 230 | [1] | 27 | 106 | |
Total Net Current Period Charges | [1] | 27 | 106 | ||
Charges against reserve and currency | (122) | (92) | (121) | ||
Balance at end of period | 127 | 19 | 84 | ||
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract] | |||||
Asset impairments | 0 | 7 | 5 | ||
Effects of foreign currency and other non-cash items | 4 | 6 | 6 | ||
Restructuring Cash Payments | (118) | (79) | (110) | ||
Services Segment [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Net current period restructuring charges | 25 | 4 | 16 | ||
Document Technology Segment [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Net current period restructuring charges | 208 | 15 | 76 | ||
All Other Segments [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Net current period restructuring charges | (3) | 8 | 14 | ||
Employee Severance [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Balance at beginning of period | 18 | 83 | 96 | ||
Restructuring provision | 224 | 35 | 115 | ||
Reversals of prior accruals | (16) | (16) | (16) | ||
Total Net Current Period Charges | [1] | 208 | 19 | 99 | |
Charges against reserve and currency | (122) | (84) | (112) | ||
Balance at end of period | 104 | 18 | 83 | ||
Lease Cancellation and Other Costs [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Balance at beginning of period | 1 | 1 | 3 | ||
Restructuring provision | 28 | 2 | 3 | ||
Reversals of prior accruals | (1) | (1) | 0 | ||
Total Net Current Period Charges | [1] | 27 | 1 | 3 | |
Charges against reserve and currency | (5) | (1) | (5) | ||
Balance at end of period | 23 | 1 | 1 | ||
Asset Impairments [Member] | |||||
Restructuring reserve [Roll Forward] | |||||
Balance at beginning of period | [2] | 0 | 0 | 0 | |
Restructuring provision | [2] | 0 | 7 | 5 | |
Reversals of prior accruals | [2] | (5) | 0 | (1) | |
Total Net Current Period Charges | [1],[2] | (5) | 7 | 4 | |
Charges against reserve and currency | [2] | 5 | (7) | (4) | |
Balance at end of period | [2] | $ 0 | $ 0 | $ 0 | |
[1] | Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges. | ||||
[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. |
Supplementary Financial Infor75
Supplementary Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Current Assets | ||
Income taxes receivable | $ 50 | $ 12 |
Royalties, license fees and software maintenance | 21 | 34 |
Restricted cash | 92 | 84 |
Prepaid expenses | 45 | 51 |
Derivative instruments | 88 | 55 |
Deferred purchase price from sales of accounts receivables | 48 | 61 |
Beneficial interests - sales of finance receivables | 8 | 8 |
Advances and deposits | 15 | 25 |
Other | 125 | 128 |
Due from Conduent | 127 | 0 |
Total Other Current Assets | 619 | 458 |
Other Current Liabilities | ||
Income taxes payable | 45 | 28 |
Other taxes payable | 78 | 76 |
Other taxes payable | (32) | |
Interest payable | 55 | 73 |
Restructuring reserves | 121 | 18 |
Derivative instruments | 39 | 11 |
Product warranties | 7 | 8 |
Dividends payable | 91 | 85 |
Distributor and reseller rebates/commissions | 120 | 106 |
Servicer liabilities | 62 | 83 |
Other | 290 | 227 |
Total Other Current Liabilities | 908 | 715 |
Other Long-term Assets | ||
Deferred taxes | 1,475 | 1,450 |
Income taxes receivable | 14 | 9 |
Prepaid pension costs | 17 | 22 |
Net investment in TRG | 126 | 142 |
Internal use software, net | 218 | 264 |
Product software, net | 8 | 8 |
Restricted cash | 87 | 72 |
Debt issuance costs, net | 3 | 4 |
Customer contract costs, net | 7 | 13 |
Beneficial interest - sales of finance receivables | 16 | 30 |
Deferred compensation plan investments | 15 | 13 |
Other | 165 | 176 |
Total Other Long-term Assets | 2,155 | 2,210 |
Other Long-term Liabilities | ||
Deferred taxes | 42 | 51 |
Income taxes payable | 16 | 49 |
Environmental reserves | 9 | 11 |
Restructuring reserves | 6 | 1 |
Other | 120 | 126 |
Total Other Long-term Liabilities | 193 | 238 |
Tax and labor litigation deposits in Brazil | 85 | 71 |
Escrow and cash collections related to receivable sales | 62 | 83 |
Other restricted cash | 32 | 2 |
Total Restricted Cash | 179 | 156 |
Cash adjustment | 161 | |
Net investment in discontinued operations TRG | 140 | |
Discontinued operations TRG | 14 | |
Other | (2) | |
Disposal Group, Including Discontinued Operation, Cash | 225 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Other Long-term Assets | ||
Derivative instruments | $ 4 | $ 7 |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Commercial paper | $ 0 | |
Notes Payable | 4 | $ 3 |
Current maturities of long-term debt | 1,007 | 959 |
Total Short-term Debt | $ 1,011 | $ 962 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2016 | Apr. 01, 2016 | Mar. 15, 2016 | Mar. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||||
Principal debt | $ 6,345 | $ 7,303 | ||||||
Unamortized discount | (43) | (52) | ||||||
Debt Issuance Cost, Gross, Noncurrent | (21) | (29) | ||||||
Fair value adjustments | [1] | 27 | 47 | |||||
Interest Rate Derivatives, at Fair Value, Net | [1] | 4 | 7 | |||||
Less: current maturities | (1,007) | (959) | ||||||
Total Long-term Debt | 5,305 | $ 6,317 | ||||||
Long-term debt from continuing operations, maturities, repayments of principal debt in next twelve months | [2] | 1,007 | ||||||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal Debt in Year Two | 1,008 | |||||||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Three | 1,156 | |||||||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Four | 1,207 | |||||||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Five | 1,067 | |||||||
Long-term Debt from Continuing Operations, Maturities, Repayments of Principal after Year Five | 900 | |||||||
Long-term Debt from Continuing Operations, Gross | 6,345 | |||||||
Long-term Debt Maturities, Current Year by Quarter, First | 1,001 | |||||||
Long-term Debt Maturities, Subsequent Year by Quarter, Second | 2 | |||||||
Long-term Debt Maturities, Current Year by Quarter, Third | 2 | |||||||
Long-term Debt Maturities, Current Year by Quarter, Fourth | $ 2 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | ||||||
Senior Notes due 2016 and Notes due 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal debt | $ 950 | |||||||
Capital Lease Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 9.44% | ||||||
Principal debt | $ 31 | $ 39 | ||||||
Senior Notes due 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal debt | 0 | $ 700 | 700 | |||||
Notes due 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal debt | $ 0 | $ 250 | 250 | |||||
Senior Notes due 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 6.83% | ||||||
Principal debt | [4] | $ 500 | 500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||||
Senior Notes due 2017 (1) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 2.98% | ||||||
Principal debt | [4] | $ 500 | 500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | |||||||
Notes due 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 0.57% | ||||||
Principal debt | $ 1 | 1 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.57% | |||||||
Senior Notes due 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 6.37% | ||||||
Principal debt | $ 1,000 | 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.35% | |||||||
Senior Notes due 2019 2.77% | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 2.77% | ||||||
Principal debt | $ 500 | 500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||
Senior Notes due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 5.66% | ||||||
Principal debt | $ 650 | 650 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.63% | |||||||
Senior Notes due 2020 2.81% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 2.81% | ||||||
Principal debt | $ 400 | 400 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | |||||||
Senior Notes due 2020 3.7% [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 3.70% | ||||||
Principal debt | $ 400 | 400 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||||
Senior Notes due 2020 2.77% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 2.77% | ||||||
Principal debt | $ 400 | 400 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||
Senior Notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 5.39% | ||||||
Principal debt | $ 1,062 | 1,062 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||||
Senior Notes due 2024 3.84% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 3.84% | ||||||
Principal debt | $ 300 | 300 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | |||||||
Senior Notes due 2035 4.84% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 4.84% | ||||||
Principal debt | $ 250 | 250 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | |||||||
Senior Notes due 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 6.78% | ||||||
Principal debt | $ 350 | 350 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||||
Subtotal - Xerox Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal debt | $ 6,313 | 7,263 | ||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | [3] | 0.34% | ||||||
Principal debt | $ 1 | 1 | ||||||
Subtotal subsidiary companies | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal debt | $ 32 | $ 40 | ||||||
Senior Notes due 2016 6.40% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | |||||||
Notes due 2016 7.20% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | |||||||
Senior Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured Debt | $ 1,000 | $ 1,000 | ||||||
Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||||
Minimum [Member] | Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | |||||||
Maximum [Member] | Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.16% | |||||||
[1] | Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. | |||||||
[2] | Quarterly long-term debt maturities from continuing operations for 2017 are $1,001, $2, $2 and $2 for the first, second, third and fourth quarters, respectively. | |||||||
[3] | Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt. | |||||||
[4] | Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information. |
Debt - Commercial Paper and Cre
Debt - Commercial Paper and Credit Facility (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Commercial Paper and Credit Facility Maximum Borrowing Capacity | 2,000,000,000 |
Commercial paper | 0 |
Line of Credit Facility, Current Borrowing Capacity | 2,000,000,000 |
Letter of credit sub-facility | 300,000,000 |
Description of Guarantees Given by Subsidiaries | $ 100,000,000 |
credit facility annual facility fee - low | 0.10% |
credit facility annual facility fee - high | 0.30% |
credit facility annual facility fee based on current credit rating | 0.20% |
Commercial Paper [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000,000 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,750,000,000 |
Credit Facility All-in Interest Rate, Low | 0.00% |
Credit Facility All-in Interest Rate, High | 0.45% |
LIBOR Plus All-in Spread, Low | 0.90% |
LIBOR All-in Spread, High | 1.45% |
Base rate at current year end | 0.30% |
LIBOR borrowing at current year end | 1.30% |
Credit Facility Leverage Terms | 3.75 |
Credit Facility, Minimum Interest Coverage Ratio | 3 |
Commercial Paper [Member] | |
Line of Credit Facility [Line Items] | |
Short-term Debt, Commercial Paper Maximum Maturity Days | 390 days |
Debt - Interest Income_Expense
Debt - Interest Income/Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of interest paid on debt from continuing and discontinued operations [Line Items] | ||||
Interest Paid | $ 352 | $ 365 | $ 400 | |
Interest Paid, Discontinued Operations | 20 | 9 | 13 | |
Interest Expense, Debt | 400 | |||
Interest Expense | [1],[2] | 309 | 346 | 366 |
Interest Income | [3] | 330 | 352 | 396 |
Continuing Operations [Member] | ||||
Schedule of interest paid on debt from continuing and discontinued operations [Line Items] | ||||
Interest Paid | $ 332 | $ 356 | $ 387 | |
[1] | (1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM). | |||
[2] | Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income. | |||
[3] | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income. |
Financial Instruments - Termina
Financial Instruments - Terminated Swaps (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amortization of fair value adjustments for terminated swaps | $ 19 | $ 22 | $ 31 |
Expected net decrease to interest expense in future years through 2018 | $ 27 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Senior Notes due 2021 | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 300 | $ 300 |
Derivative Liability, Fair Value, Gross Asset | $ 4 | $ 7 |
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | |
Senior Notes Due 2021 4.5% [Member] [Member] | ||
Derivative [Line Items] | ||
Debt, Weighted Average Interest Rate | 2.60% |
Financial Instruments - Foreign
Financial Instruments - Foreign Exchange Risk Management (Details) $ in Millions | Dec. 31, 2016USD ($) | |
Foreign Exchange Contracts [Line Items] | ||
Average Maturity of Foreign Exchange Hedging Contracts - within Three Months | 85.00% | |
Average Maturity of Foreign Exchange Hedging Contracts - within Three and Six Months | 11.00% | |
Average Maturity of Foreign Exchange Hedging Contracts - within Six and Twelve Months | 4.00% | |
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | $ 3,149 | |
Euro/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 1,321 | |
Japanese Yen/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 389 | |
U.S. Dollar/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 268 | |
Japanese Yen/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 261 | |
U.S. Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 210 | |
Canadian Dollar/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 169 | |
Swiss Franc/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 98 | |
U.K. Pound Sterling/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 98 | |
U.K. Pound Sterling/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 77 | |
Euro/Japanese Yen | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 26 | |
Euro/Mexican Peso | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 25 | |
All Other | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Gross Notional Value | 207 | |
Foreign exchange contract [Member] | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 49 | [1] |
Foreign exchange contract [Member] | Euro/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 22 | [1] |
Foreign exchange contract [Member] | Japanese Yen/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | (27) | [1] |
Foreign exchange contract [Member] | U.S. Dollar/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 41 | [1] |
Foreign exchange contract [Member] | Japanese Yen/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | (6) | [1] |
Foreign exchange contract [Member] | U.S. Dollar/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 6 | [1] |
Foreign exchange contract [Member] | Canadian Dollar/U.K. Pound Sterling | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 14 | [1] |
Foreign exchange contract [Member] | Swiss Franc/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | U.K. Pound Sterling/Euro | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | (1) | [1] |
Foreign exchange contract [Member] | U.K. Pound Sterling/U.S. Dollar | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | (1) | [1] |
Foreign exchange contract [Member] | Euro/Japanese Yen | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 0 | [1] |
Foreign exchange contract [Member] | Euro/Mexican Peso | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | 2 | [1] |
Foreign exchange contract [Member] | All Other | ||
Summary of Foreign Exchange Hedging Positions [Abstract] | ||
Fair Value Asset (Liability) | $ (1) | [1] |
[1] | Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016. |
Financial Instruments - Summary
Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 53,000,000 | $ 51,000,000 |
Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative instruments | 92,000,000 | 62,000,000 |
Other Liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | (39,000,000) | (11,000,000) |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (16,000,000) | 8,000,000 |
Cash Flow Hedging [Member] | ||
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | |
Foreign exchange contracts - forwards [Member] | Designated as Hedging Instrument [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (20,000,000) | 1,000,000 |
Foreign exchange contracts - forwards [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative instruments | 6,000,000 | 4,000,000 |
Foreign exchange contracts - forwards [Member] | Designated as Hedging Instrument [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | (26,000,000) | (2,000,000) |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 69,000,000 | 43,000,000 |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative instruments | 82,000,000 | 51,000,000 |
Foreign exchange contracts - forwards [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | (13,000,000) | (8,000,000) |
Options Held [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative instruments | 0 | 0 |
Options Held [Member] | Designated as Hedging Instrument [Member] | Other current liabilities [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Other current liabilities | 0 | (1,000,000) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Derivative instruments | 4,000,000 | $ 7,000,000 |
Foreign Currency Gain (Loss) [Member] | Cash Flow Hedging [Member] | ||
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0 |
Financial Instruments - Summa84
Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Loss, Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 13,000,000 | $ (1,000,000) | $ 22,000,000 |
Currency (losses) gains, net | (13,000,000) | (2,000,000) | (6,000,000) |
Foreign exchange contracts - forwards [Member] | Not Designated as Hedging Instrument [Member] | Other expense - Currency gains (losses), net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in Income | 172,000,000 | 17,000,000 | (9,000,000) |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in Income | 0 | ||
Fair Value Hedging [Member] | Interest rate contracts [Member] | Interest expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in Income | (3,000,000) | 2,000,000 | 5,000,000 |
Hedged Item Gain (Loss) Recognized in Income | 3,000,000 | (2,000,000) | (5,000,000) |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Gain (Loss) Recognized in OCI | 20,000,000 | 17,000,000 | (20,000,000) |
Cash Flow Hedging [Member] | Foreign exchange contracts - forwards [Member] | Cost of sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from AOCI to Income | $ 42,000,000 | $ (23,000,000) | $ (39,000,000) |
Fair Value of Financial Asset85
Fair Value of Financial Assets and Liabilities - Recurring (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | |||
Interest Rate Derivatives, at Fair Value, Net | [1] | $ 4 | $ 7 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Interest Rate Derivatives, at Fair Value, Net | 4 | 7 | |
Deferred compensation investments in mutual funds | 15 | 13 | |
Total | 107 | 75 | |
Liabilities: | |||
Foreign exchange contracts - forwards | 39 | 10 | |
Deferred compensation plan liabilities | 17 | 15 | |
Total | 56 | 26 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contracts - forwards [Member] | |||
Assets: | |||
Foreign exchange contracts - forwards | 88 | 55 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Options Held [Member] | |||
Liabilities: | |||
Foreign exchange contracts - forwards | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Currency Swap [Member] | |||
Liabilities: | |||
Foreign exchange contracts - forwards | $ 1 | ||
[1] | Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment. |
Fair Value of Financial Asset86
Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 2,223 | $ 1,228 |
Accounts receivable, net | 961 | 1,068 |
Short-term debt | 1,011 | 962 |
Long-term debt | 5,305 | 6,317 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 2,223 | 1,228 |
Accounts receivable, net | 961 | 1,068 |
Short-term debt | 1,015 | 954 |
Long-term debt | $ 5,438 | $ 6,358 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Amounts Recognized in the Consolidated Balance Sheets: | ||||
Pension and other benefit liabilities | $ (2,240) | $ (2,360) | ||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning | 4,126 | 4,642 | ||
Service cost | 4 | 4 | $ 4 | |
Interest cost | [1] | 184 | 80 | 278 |
Plan participants' contributions | 0 | 0 | ||
Actuarial loss (gain) | 114 | (223) | ||
Currency exchange rate changes | 0 | 0 | ||
Plan Amendments/Curtailments | 0 | 0 | ||
Benefits paid/settlements | (275) | (377) | ||
Other | 8 | 0 | ||
Benefit obligation - ending | 4,161 | 4,126 | 4,642 | |
Change in Plan Assets: | ||||
Fair value of plan assets -beginning | 2,806 | 3,081 | ||
Actual return on plan assets | 220 | (70) | ||
Employer contributions | 24 | 173 | ||
Plan participants' contributions | 0 | 0 | ||
Currency exchange rate changes | 0 | 0 | ||
Benefits paid/settlements | (275) | (377) | ||
Other | (1) | (1) | ||
Fair Value of Plan Assets - ending | 2,774 | 2,806 | 3,081 | |
Net Funded Status | [2] | (1,387) | (1,320) | |
Amounts Recognized in the Consolidated Balance Sheets: | ||||
Other long-term assets | 0 | 0 | ||
Accrued compensation and benefit costs | (24) | (23) | ||
Pension and other benefit liabilities | (1,363) | (1,297) | ||
Post-retirement medical benefits | 0 | 0 | ||
Net Amounts Recognized | (1,387) | (1,320) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Net actuarial loss | 1,094 | 1,101 | ||
Prior service credit | (9) | (11) | ||
Total Pre-tax Loss (Gain) | 1,085 | 1,090 | ||
Accumulated Benefit Obligation | 4,161 | 4,126 | ||
Foreign Pension Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning | 6,308 | 6,962 | ||
Service cost | 31 | 32 | 31 | |
Interest cost | [1] | 195 | 203 | 262 |
Plan participants' contributions | 4 | 4 | ||
Actuarial loss (gain) | 636 | (94) | ||
Currency exchange rate changes | (774) | (524) | ||
Plan Amendments/Curtailments | 0 | (17) | ||
Benefits paid/settlements | (234) | (255) | ||
Other | (6) | (3) | ||
Benefit obligation - ending | 6,160 | 6,308 | 6,962 | |
Change in Plan Assets: | ||||
Fair value of plan assets -beginning | 5,353 | 5,930 | ||
Actual return on plan assets | 804 | (20) | ||
Employer contributions | 154 | 128 | ||
Plan participants' contributions | 4 | 4 | ||
Currency exchange rate changes | (694) | (428) | ||
Benefits paid/settlements | (234) | (255) | ||
Other | (3) | (6) | ||
Fair Value of Plan Assets - ending | 5,384 | 5,353 | 5,930 | |
Net Funded Status | [2] | (776) | (955) | |
Amounts Recognized in the Consolidated Balance Sheets: | ||||
Other long-term assets | 17 | 22 | ||
Accrued compensation and benefit costs | (22) | (26) | ||
Pension and other benefit liabilities | (771) | (951) | ||
Post-retirement medical benefits | 0 | 0 | ||
Net Amounts Recognized | (776) | (955) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Net actuarial loss | 1,741 | 1,966 | ||
Prior service credit | (28) | (33) | ||
Total Pre-tax Loss (Gain) | 1,713 | 1,933 | ||
Accumulated Benefit Obligation | 5,931 | 6,068 | ||
Postretirement Health Coverage [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning | 855 | 937 | ||
Service cost | 6 | 7 | 9 | |
Interest cost | [1] | 32 | 34 | 36 |
Plan participants' contributions | 1 | 14 | ||
Actuarial loss (gain) | (75) | (4) | ||
Currency exchange rate changes | 4 | (25) | ||
Plan Amendments/Curtailments | 0 | (31) | ||
Benefits paid/settlements | (62) | (77) | ||
Other | 0 | 0 | ||
Benefit obligation - ending | 761 | 855 | 937 | |
Change in Plan Assets: | ||||
Fair value of plan assets -beginning | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 61 | 63 | ||
Plan participants' contributions | 1 | 14 | ||
Currency exchange rate changes | 0 | 0 | ||
Benefits paid/settlements | (62) | (77) | ||
Other | 0 | 0 | ||
Fair Value of Plan Assets - ending | 0 | 0 | $ 0 | |
Net Funded Status | [2] | (761) | (855) | |
Amounts Recognized in the Consolidated Balance Sheets: | ||||
Other long-term assets | 0 | 0 | ||
Accrued compensation and benefit costs | (63) | (68) | ||
Pension and other benefit liabilities | 0 | 0 | ||
Post-retirement medical benefits | (698) | (787) | ||
Net Amounts Recognized | (761) | (855) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Net actuarial loss | 37 | 112 | ||
Prior service credit | (29) | (34) | ||
Total Pre-tax Loss (Gain) | $ 8 | $ 78 | ||
[1] | Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively. | |||
[2] | Includes under-funded and un-funded plans. |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | $ 9,141 | $ 9,350 | ||
Accumulated Benefit Obligation | 8,965 | 9,183 | ||
Fair value of plan assets | 6,968 | 7,106 | ||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 4,161 | 4,126 | ||
Accumulated Benefit Obligation | 4,161 | 4,126 | ||
Fair value of plan assets | 2,774 | 2,806 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,774 | 2,806 | $ 3,081 | |
Pension Benefit Obligation | 4,161 | 4,126 | 4,642 | |
Net Funded Status | [1] | (1,387) | (1,320) | |
Foreign Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 4,980 | 5,224 | ||
Accumulated Benefit Obligation | 4,804 | 5,057 | ||
Fair value of plan assets | 4,194 | 4,300 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5,384 | 5,353 | 5,930 | |
Pension Benefit Obligation | 6,160 | 6,308 | $ 6,962 | |
Net Funded Status | [1] | (776) | (955) | |
Underfunded [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 3,820 | 3,781 | ||
Accumulated Benefit Obligation | 3,820 | 3,781 | ||
Fair value of plan assets | 2,774 | 2,806 | ||
Underfunded [Member] | Foreign Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 4,535 | 4,803 | ||
Accumulated Benefit Obligation | 4,368 | 4,644 | ||
Fair value of plan assets | 4,194 | 4,300 | ||
Unfunded [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 341 | 345 | ||
Accumulated Benefit Obligation | 341 | 345 | ||
Fair value of plan assets | 0 | 0 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Pension Benefit Obligation | 341 | |||
Net Funded Status | (341) | |||
Unfunded [Member] | Foreign Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 445 | 421 | ||
Accumulated Benefit Obligation | 436 | 413 | ||
Fair value of plan assets | 0 | $ 0 | ||
Funded [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,774 | |||
Pension Benefit Obligation | 3,820 | |||
Net Funded Status | (1,046) | |||
UNITED KINGDOM | Defined Benefit Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,445 | |||
Pension Benefit Obligation | 3,679 | |||
Net Funded Status | (234) | |||
Canada | Defined Benefit Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 661 | |||
Pension Benefit Obligation | 700 | |||
Net Funded Status | (39) | |||
Pension Plans All Other Countries [Member] | Defined Benefit Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,278 | |||
Pension Benefit Obligation | 1,781 | |||
Net Funded Status | (503) | |||
Funded and Unfunded Plans [Member] | Foreign Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 8,158 | |||
Pension Benefit Obligation | 10,321 | |||
Net Funded Status | $ (2,163) | |||
[1] | Includes under-funded and un-funded plans. |
Employee Benefit Plans - Total
Employee Benefit Plans - Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Recognized curtailment gain | $ (22) | ||||
Defined Benefit Plans | $ 127 | $ 141 | $ 74 | ||
Net actuarial (gain) loss | (118) | (73) | (1,291) | ||
Amortization of net actuarial loss | [1] | (160) | (186) | (121) | |
Amortization of net prior service credit | [1] | (10) | (38) | (46) | |
Total Recognized in Other Comprehensive Income | (141) | (212) | 1,070 | ||
Interest Expense on Non-TRA Obligations | 296 | 311 | 361 | ||
Interest Expense Allocated to TRA Participant Accounts | 83 | (25) | 182 | ||
Expected Investment Income on Non-TRA Assets | 356 | 388 | 437 | ||
Actual Investment Income on TRA Assets | 83 | (25) | 182 | ||
United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 4 | 4 | 4 | ||
Interest cost | [2] | 184 | 80 | 278 | |
Expected return on plan assets | [3] | (190) | (79) | (287) | |
Recognized net actuarial loss | 26 | 24 | 17 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (2) | (2) | (2) | ||
Recognized settlement loss | 65 | 88 | 51 | ||
Recognized curtailment gain | 0 | 0 | 0 | ||
Defined Benefit Plans | 87 | 115 | 61 | ||
Defined contribution plans | 30 | 33 | 31 | ||
Net Periodic Benefit Cost | 117 | 148 | 92 | ||
Net actuarial (gain) loss | 84 | (74) | 688 | ||
Prior service credit | 0 | 0 | 0 | ||
Amortization of net actuarial loss | (92) | (112) | (68) | ||
Amortization of net prior service credit | 2 | 2 | 2 | ||
Curtailment gain | 0 | 0 | 0 | ||
Total Recognized in Other Comprehensive Income | (6) | (184) | 622 | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 111 | (36) | 714 | ||
Foreign Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 31 | 32 | 31 | ||
Interest cost | [2] | 195 | 203 | 262 | |
Expected return on plan assets | (249) | (284) | (332) | ||
Recognized net actuarial loss | 65 | 70 | 54 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3) | 4 | (1) | ||
Recognized settlement loss | 1 | 1 | 0 | ||
Recognized curtailment gain | 0 | 0 | (1) | ||
Defined Benefit Plans | 40 | 26 | 13 | ||
Defined contribution plans | 31 | 33 | 40 | ||
Net Periodic Benefit Cost | 71 | 59 | 53 | ||
Net actuarial (gain) loss | 76 | 204 | 447 | ||
Prior service credit | 0 | (16) | (6) | ||
Amortization of net actuarial loss | (66) | (71) | (54) | ||
Amortization of net prior service credit | 3 | (4) | 1 | ||
Curtailment gain | 0 | 0 | 2 | ||
Total Recognized in Other Comprehensive Income | 13 | 113 | 390 | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 84 | 172 | 443 | ||
Postretirement Health Coverage [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 6 | 7 | 9 | ||
Interest cost | [2] | 32 | 34 | 36 | |
Expected return on plan assets | 0 | 0 | 0 | ||
Recognized net actuarial loss | 2 | 1 | 1 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (5) | (18) | (43) | ||
Recognized settlement loss | 0 | 0 | 0 | ||
Recognized curtailment gain | 0 | (22) | 0 | ||
Defined Benefit Plans | 35 | 2 | 3 | ||
Net Periodic Benefit Cost | 35 | 2 | 3 | ||
Net actuarial (gain) loss | (75) | (4) | 119 | ||
Prior service credit | 0 | (32) | 0 | ||
Amortization of net actuarial loss | (2) | (1) | (1) | ||
Amortization of net prior service credit | 5 | 18 | 43 | ||
Curtailment gain | 0 | 22 | |||
Total Recognized in Other Comprehensive Income | (72) | 3 | 161 | ||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | (37) | $ 5 | $ 164 | ||
Benefit plans net actuarial loss [Member] | Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | (101) | ||||
Benefit plans net actuarial loss [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 0 | ||||
Benefit plans prior service credits [Member] | Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 5 | ||||
Benefit plans prior service credits [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $ 4 | ||||
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information. | ||||
[2] | Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||
[3] | Expected return on plan assets includes expected investment income on non-TRA assets of $356, $388 and $437 and actual investment income (loss) on TRA assets of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Amendments and Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 22 | ||
Defined benefit plan global plan assets at measurement dates | $ 8,158 | $ 8,159 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Assets Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Reverse Repurchase Agreements Segregated under Securities Exchange Commission Regulation | $ 116 | |||
United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2,774 | $ 2,806 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 819 | 733 | |
Pension Fair Value, Level One, Other Assets | 15 | (103) | ||
United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 171 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 5,384 | 5,353 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 720 | 746 | |
Pension Fair Value, Level One, Other Assets | 6 | 5 | ||
Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 544 | 577 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | 55 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 629 | 777 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 171 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | (103) | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,174 | 1,799 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 544 | 577 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | 5 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,314 | 1,279 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | (1) | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 3,259 | 2,539 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | 50 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 12 | 17 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 231 | 269 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Cash and cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [2] | 0 | ||
US Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 388 | 400 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 68 | 20 | |
US Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 308 | 238 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 320 | 380 | ||
US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 266 | 200 | ||
US Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 42 | 38 | ||
US Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
International Equity Securities [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 418 | 445 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 160 | 157 | |
International Equity Securities [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,207 | 1,163 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 127 | 112 | |
International Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 258 | 287 | ||
International Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 358 | 1,011 | ||
International Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 1 | ||
International Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 722 | 40 | ||
International Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
International Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 233 | 216 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
US Treasury Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 44 | 48 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 233 | 216 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 44 | 48 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 65 | 156 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Debt security issued by government agency [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,654 | 1,602 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 3 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 65 | 156 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,654 | 1,599 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Debt security issued by government agency [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,052 | 913 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Corporate Bond Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 618 | 695 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 3 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1,052 | 913 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 618 | 692 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2 | 2 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Asset-backed Securities [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | 1 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 2 | 2 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 1 | 1 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Real estate [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 82 | 98 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 34 | 39 | |
Real estate [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 289 | 299 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 168 | 154 | |
Real estate [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 36 | 42 | ||
Real estate [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Real estate [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Real estate [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Real estate [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 12 | 17 | ||
Real estate [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 121 | 145 | ||
Private Equity Or Venture Capital [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 490 | 499 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 490 | 499 | |
Private Equity Or Venture Capital [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 491 | 550 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 425 | 480 | |
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 60 | 66 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Private Equity Or Venture Capital [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Private Equity Or Venture Capital [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 6 | 4 | ||
Guaranteed Insurance Contracts [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Guaranteed Insurance Contracts [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 104 | 120 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Guaranteed Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Guaranteed Insurance Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 104 | 120 | ||
Defined Benefits Plan Assets, Other [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 82 | [3] | (86) | |
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1],[3] | 67 | 18 | |
Defined Benefits Plan Assets, Other [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 60 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1],[3] | 0 | 0 | |
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 15 | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 6 | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 0 | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 54 | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 0 | ||
Defined Benefits Plan Assets, Other [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | [3] | 0 | ||
Derivative [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | (38) | (8) | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Derivative [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 64 | 5 | ||
Defined Benefit Plan Net Asset Value Of Plan Assets Excluding Non Financial Assets Net | [1] | 0 | 0 | |
Derivative [Member] | Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Derivative [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Derivative [Member] | Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | (38) | (8) | ||
Derivative [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 64 | 5 | ||
Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | 0 | 0 | ||
Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | Derivative [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan Fair Value Of Plan Assets Levels 1, 2 and 3 | $ 0 | $ 0 | ||
[1] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy. | |||
[2] | Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end. | |||
[3] | Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. |
Employee Benefit Plans - Defi92
Employee Benefit Plans - Defined Benefit Plans Measured Using Significant Unobservable Inputs Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
United States Pension Plan of US Entity [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | $ 2,806 | $ 3,081 | |
Fair Value of Plan Assets - ending | 2,774 | 2,806 | |
United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Measured at FV, using NAV per share practical expedient. [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 500 | ||
United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 17 | 22 | [1] |
Purchases | 0 | 0 | |
Sales | (3) | (15) | |
Realized (losses) gains | 0 | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (2) | 9 | |
Currency translation | 0 | 0 | |
Fair Value of Plan Assets - ending | 12 | 17 | |
Foreign Pension Plan [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 5,353 | 5,930 | |
Fair Value of Plan Assets - ending | 5,384 | 5,353 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 269 | 279 | [1] |
Purchases | 5 | 19 | |
Sales | (26) | (21) | |
Realized (losses) gains | 7 | 6 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (12) | 11 | |
Currency translation | (12) | (25) | |
Fair Value of Plan Assets - ending | 231 | 269 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Measured at FV, using NAV per share practical expedient. [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 545 | ||
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 145 | 147 | [1] |
Purchases | 1 | 0 | |
Sales | (13) | 0 | |
Realized (losses) gains | 6 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (5) | 9 | |
Currency translation | (13) | (11) | |
Fair Value of Plan Assets - ending | 121 | 145 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity funds [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 4 | 4 | [1] |
Purchases | 2 | 0 | |
Sales | (1) | 0 | |
Realized (losses) gains | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (4) | 1 | |
Currency translation | 5 | (1) | |
Fair Value of Plan Assets - ending | 6 | 4 | |
Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Guaranteed insurance contracts [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of plan assets -beginning | 120 | 128 | [1] |
Purchases | 2 | 19 | |
Sales | (12) | (21) | |
Realized (losses) gains | 1 | 6 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (3) | 1 | |
Currency translation | (4) | (13) | |
Fair Value of Plan Assets - ending | $ 104 | $ 120 | |
[1] | Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient. |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment Strategy (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Equity investments, percent | 30.00% | 34.00% |
Fixed income investments, percent | 48.00% | 43.00% |
Real estate, percent | 6.00% | 6.00% |
Private equity, percent | 8.00% | 9.00% |
Other, percent | 8.00% | 8.00% |
Pension Plan Assets, Investment Strategy | 100.00% | 100.00% |
Foreign Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Equity investments, percent | 28.00% | 28.00% |
Fixed income investments, percent | 45.00% | 48.00% |
Real estate, percent | 5.00% | 6.00% |
Private equity, percent | 9.00% | 10.00% |
Other, percent | 13.00% | 8.00% |
Pension Plan Assets, Investment Strategy | 100.00% | 100.00% |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Post Retirement Benefit Plan, Future Employer Contribution in Next Fixcal Year | $ 63 | |||
2,017 | 1,062 | |||
2,018 | 443 | |||
2,019 | 445 | |||
2,020 | 453 | |||
2,021 | 533 | |||
Years 2022-2026 | 2,714 | |||
Post employment benefit plan contributions by employer | 61 | $ 66 | $ 71 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 178 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 350 | |||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | 24 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 169 | |||
2,017 | 852 | |||
2,018 | 227 | |||
2,019 | 223 | |||
2,020 | 225 | |||
2,021 | 296 | |||
Years 2022-2026 | $ 1,433 | |||
Discount rate assumptions used to determine benefit obligations | 4.00% | 4.30% | 3.90% | |
Rate of compensation increase assumptions used to determine benefit obligation | 0.20% | 0.20% | 0.20% | |
Discount rate assumptions used to determine net periodic benefit costs | 4.30% | 3.90% | 4.80% | |
Expected return on plan assets assumptions used to determine net periodic benefit cost | 7.50% | 7.50% | 7.80% | |
Rate of compensation increase assumptions used to determine net periodic benefit cost | 0.20% | 0.20% | 0.20% | |
Foreign Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | $ 154 | |||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 181 | |||
2,017 | 210 | |||
2,018 | 216 | |||
2,019 | 222 | |||
2,020 | 228 | |||
2,021 | 237 | |||
Years 2022-2026 | $ 1,281 | |||
Discount rate assumptions used to determine benefit obligations | 2.50% | 3.30% | 3.10% | |
Rate of compensation increase assumptions used to determine benefit obligation | 2.60% | 2.70% | 2.60% | |
Discount rate assumptions used to determine net periodic benefit costs | 3.30% | 3.10% | 4.20% | |
Expected return on plan assets assumptions used to determine net periodic benefit cost | 4.80% | 5.20% | 6.10% | |
Rate of compensation increase assumptions used to determine net periodic benefit cost | 2.70% | 2.60% | 2.60% | |
Postretirement Health Coverage [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
2,017 | $ 63 | |||
2,018 | 64 | |||
2,019 | 62 | |||
2,020 | 61 | |||
2,021 | 59 | |||
Years 2022-2026 | $ 261 | |||
Discount rate assumptions used to determine benefit obligations | 3.90% | 4.10% | 3.80% | |
Discount rate assumptions used to determine net periodic benefit costs | 4.10% | 3.80% | 4.50% | |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit pension plan contributions by employer | $ 61 | |||
Health care cost trend rate assumed for next year | 7.20% | 7.50% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.80% | 4.90% | ||
Year that the rate reaches the ultimate trend rate | 2,026 | 2,026 | ||
Effect on total service and interest cost components - 1% increase | $ 2 | |||
Effect on total service and interest cost components - 1% decrease | (2) | |||
Effect on post-retirement benefit obligation - 1% increase | 53 | |||
Effect on post-retirement benefit obligation - 1% decrease | (46) | |||
Domestic, tax-qualified, defined benefit plan [Domain] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 145 | |||
Scenario, Forecast [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate assumptions used to determine net periodic benefit costs | 4.00% | |||
Expected return on plan assets assumptions used to determine net periodic benefit cost | 7.00% | |||
Rate of compensation increase assumptions used to determine net periodic benefit cost | 0.20% | |||
Scenario, Forecast [Member] | Foreign Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate assumptions used to determine net periodic benefit costs | 2.50% | |||
Expected return on plan assets assumptions used to determine net periodic benefit cost | 4.10% | |||
Rate of compensation increase assumptions used to determine net periodic benefit cost | 2.60% | |||
Scenario, Forecast [Member] | Postretirement Health Coverage [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate assumptions used to determine net periodic benefit costs | 3.90% | |||
Minimum [Member] | Domestic, tax-qualified, defined benefit plan [Domain] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | 15 | |||
Voluntary contribution [Domain] | Domestic, tax-qualified, defined benefit plan [Domain] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year | $ 130 |
Income and Other Taxes - Domest
Income and Other Taxes - Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic income | $ 415 | $ 613 | $ 635 |
Foreign income | 153 | 311 | 455 |
Income Before Income Taxes and Equity Income | $ 568 | $ 924 | $ 1,090 |
Income and Other Taxes - Income
Income and Other Taxes - Income Tax Expense (Benefit), Current Deferred, by Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current State Tax Expense (Benefit) | $ 15 | $ (38) | $ 21 |
Current Federal Tax (Benefit) Expense | (15) | (225) | (58) |
Deferred Federal Income Tax (Benefit) Expense | (4) | 300 | 150 |
Current Foreign Tax Expense | 71 | 73 | 83 |
Deferred Foreign Income Tax Expense (Benefit) | (13) | 7 | (16) |
Deferred State Income Tax Expense | 8 | 76 | 18 |
Total (Benefit) Provision | $ 62 | $ 193 | $ 198 |
Income and Other Taxes - Reconc
Income and Other Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Nondeductible expenses | 2.90% | 1.10% | 1.30% | |
Effect of tax law changes | 1.20% | (1.00%) | (5.20%) | |
Change in valuation allowance for deferred tax assets | (1.40%) | (1.60%) | (1.40%) | |
State taxes, net of federal benefit | 3.00% | 2.20% | 2.00% | |
Audit and other tax return adjustments | (4.10%) | 1.30% | (3.00%) | |
Tax-exempt income, credits and incentives | (4.00%) | (1.80%) | (1.90%) | |
Foreign rate differential adjusted for U.S. taxation of foreign profits | [1] | (22.60%) | (15.30%) | (9.00%) |
Other | 0.90% | 1.00% | 0.40% | |
Effective Income Tax Rate | 10.90% | 20.90% | 18.20% | |
Income Taxes Paid | $ 130 | $ 138 | $ 121 | |
[1] | The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. |
Income and Other Taxes - Alloca
Income and Other Taxes - Allocation of Income Tax Expense Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Interperiod Allocaion [Line Items] | ||||
Pre-tax income | $ 62 | $ 193 | $ 198 | |
Discontinued Operation, Tax Effect of Discontinued Operation | [1] | (250) | (134) | 23 |
Stock option and incentive plans, net | 0 | (18) | (18) | |
Total Income Tax Expense (Benefit) | (179) | 115 | (207) | |
Defined Benefit Pension Plans, Defined Benefit [Member] | ||||
Income Tax Interperiod Allocaion [Line Items] | ||||
Other comprehensive income (loss), tax | 15 | 59 | (408) | |
Cash flow hedges [Member] | ||||
Income Tax Interperiod Allocaion [Line Items] | ||||
Other comprehensive income (loss), tax | (8) | 15 | 0 | |
Translation adjustments [Member] | ||||
Income Tax Interperiod Allocaion [Line Items] | ||||
Other comprehensive income (loss), tax | $ 2 | $ 0 | $ (2) | |
[1] | Refer to Note 4 - Divestitures for additional information regarding discontinued operations. |
Income and Other Taxes - Unreco
Income and Other Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance, Beginning | $ 222 | $ 207 | $ 225 | |
Additions (Reductions) related to current year | (9) | 36 | 12 | |
Additions related to prior years positions | 0 | 0 | 9 | |
Reductions related to prior years positions | (31) | (5) | (23) | |
Settlements with taxing authorities | [1] | 0 | (6) | (8) |
Reductions related to lapse of statute of limitations | (2) | (9) | (6) | |
Currency | (2) | (1) | (2) | |
Balance, Ending | 165 | 222 | 207 | |
Unrecognized Tax Benefits, Reasonably Possible but Uncertainty of Timing | 5 | 9 | 12 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 10 | 2 | 3 | |
Tax Positions assumed in Conduent Separation | $ (13) | $ 0 | $ 0 | |
[1] | Majority of settlements did not result in the utilization of cash. |
Income and Other Taxes - Deferr
Income and Other Taxes - Deferred Tax Asset And Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets And Liabilities [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 7,000 | |
Research and development | 289 | $ 370 |
Post-retirement medical benefits | 276 | 311 |
Net operating losses | 407 | 367 |
Operating reserves, accruals and deferrals | 190 | 171 |
Tax credit carryforwards | 751 | 666 |
Deferred compensation | 197 | 167 |
Pension | 539 | 553 |
Other | 81 | 138 |
Subtotal | 2,730 | 2,743 |
Valuation allowance | (416) | (383) |
Total | 2,314 | 2,360 |
Unearned income and installment sales | 633 | 705 |
Intangibles and goodwill | 200 | 208 |
Other | 48 | 48 |
Total | 881 | 961 |
Total Deferred Taxes, Net | 1,433 | 1,399 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | (33) | $ 125 |
Deferred Tax Assets, Tax Credit Carryforwards | 751 | |
Net Operating Loss Carryforwards, Expire | 700 | |
Net Operating Loss Carryforwards, Indefinitely | 1,700 | |
Carryforward Indefinitely [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 48 | |
Carryforwards Expire [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards | $ 703 |
Contingencies and Litigation (D
Contingencies and Litigation (Details) $ in Millions | May 09, 2014 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | ||||
Loss Contingency, Damages Sought, Multiplier Of Overpayment Amounts | 2 | |||
Product warranty expense | $ 15 | $ 22 | $ 25 | |
Product warranty accrual | 8 | 9 | ||
Brazil Tax And Labor Contingencies [Member] | ||||
Loss Contingencies [Line Items] | ||||
Unreserved tax and labor contingencies | 750 | $ 577 | ||
Escrow cash deposits | 85 | |||
Net book value of assets with liens | 4 | |||
Letters of Credit Outstanding, Amount | 142 | |||
Surety Bonds Outstanding, Amount | $ 91 |
Contingencies and Litigation -
Contingencies and Litigation - Other Contingencies (Details) $ in Millions | Dec. 31, 2016USD ($) |
Other contingencies letter of credits [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum exposure, undiscounted | $ 375 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)Days$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Class of Stock [Line Items] | ||||
Fair Value adjustment, modification of awards upon exchange, Conduent conversion | $ 7 | |||
Preferred stock, dividend rate, percentage | 8.00% | |||
Cash dividends declared-preferred stock | [1] | $ 24 | $ 24 | $ 24 |
Preferred stock converted into common shares | shares | 149.8127 | |||
Total conversion of number of preferred stock shares into common stock, shares | shares | 26,966,000 | |||
Total conversion of preferred stock shares into common stock, initial conversion price per share | $ / shares | $ 6.675 | |||
Common stock closing price, maximum threshold, triggering conversion of Pfd to Common Stock | $ / shares | $ 9.75 | |||
Common stock closing price, maximum threshold as percent of initial conversion price, triggering conversion of Pfd to Common Stock | 146.10% | |||
Minimum number of trading days C/S close price must exceed conversion price to trigger Pfd Stock conversion | Days | 20 | |||
Number of trading days used for measurement | Days | 30 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, ACS acquisition shares issued | shares | 300,000 | |||
Preferred stock, total carrying value | $ 356 | |||
Convertible Preferred Stock, Shares Issued upon Conversion, Conduent Shares | shares | 120,000 | |||
Conduent Preferred Stock, Post Conversion Carrying Value, Shares Issued | $ 142 | |||
Series B [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Liquidation Preference, Value | 180 | |||
Xerox Preferred Stock, Post Conversion Carrying Value, Shares Issued | 214 | |||
Cash dividends declared-preferred stock | $ 14 | |||
Preferred stock converted into common shares | shares | 180,000 | |||
Conduent [Domain] | Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Liquidation Preference, Value | $ 120 | |||
[1] | Cash dividends declared on preferred stock of $20 per share in each quarter of 2016, 2015 and 2014. |
Shareholders' Equity - Equity S
Shareholders' Equity - Equity Stocks Information (Details) shares in Millions | Dec. 31, 2016$ / sharesshares |
Class of Stock [Line Items] | |
Preferred Stock, Shares Authorized | 22 |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 1 |
Common Stock, Shares Authorized | 1,750 |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 1 |
Stock Compensation Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 101 |
Convertible Debt [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 48 |
Series A [Member] | |
Class of Stock [Line Items] | |
Common Stock Shares Reserved for Future Issuance, Incentive Compensation | 27 |
Shareholders' Equity - Treasury
Shareholders' Equity - Treasury Stock (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchased During Period, Shares | shares | 0 |
Authorized share repurchase programs | $ 8,000 |
Share repurchase cost | 7,755 |
Share repurchase fees | $ 12 |
Number of shares repurchased | shares | 695,230,000 |
Share Repurchase Program Combined Authorization | $ 8,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 245 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock and Treasury Stock Period Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Acquisition of Treasury stock | 695,230 | ||
Common Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, Beginning | 1,012,836 | 1,124,354 | 1,210,321 |
Stock based compensation plans, net | 1,539 | 11,292 | 13,965 |
Acquisition of Treasury stock | 0 | 0 | |
Cancellation of Treasury stock | (122,810) | (100,928) | |
Conversion of 2014 9% Notes, shares | 996 | ||
Balance, Ending | 1,014,375 | 1,012,836 | 1,124,354 |
Treasury Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, Beginning | 0 | 7,609 | 22,001 |
Stock based compensation plans, net | 0 | 0 | 0 |
Acquisition of Treasury stock | 115,201 | 86,536 | |
Cancellation of Treasury stock | (122,810) | (100,928) | |
Conversion of 2014 9% Notes, shares | 0 | ||
Balance, Ending | 0 | 0 | 7,609 |
Shareholders' Equity - Total St
Shareholders' Equity - Total Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 41,000,000 | 43,000,000 | |
Stock-based compensation expense, pre-tax | $ 50 | $ 27 | $ 63 |
Income tax benefit recognized in earnings | $ 19 | $ 10 | $ 24 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, number of common stock share equivalents for each Performance Share granted | 1 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Officers, Select Executives and middle management [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Requisite service period | 3 years | ||
Officers, Select Executives and middle management [Member] | Performance Shares, BPO Separation Related [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 1 year | ||
Officers and Select Executives [Domain] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award - Maximum over-achievement | 50.00% | 100.00% | 50.00% |
All Other Participants [Domain] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award - Maximum over-achievement | 25.00% |
Shareholders' Equity - Share-ba
Shareholders' Equity - Share-based Compensation, Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Outstanding at January 1 | 2,390 | 12,197 | 19,079 | |
Granted | 7,174 | 798 | 926 | |
Vested | (314) | (10,191) | (6,934) | |
Cancelled | (548) | (414) | (874) | |
Outstanding at December 31 | 7,232 | 2,390 | 12,197 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at January 1 | $ 11.05 | $ 9.50 | $ 9.62 | |
Granted | 9.57 | 11.08 | 12.30 | |
Vested | 9.62 | 7.86 | 10.33 | |
Cancelled | 10.12 | 9.27 | 8.55 | |
Outstanding at December 31 | $ 7.52 | $ 11.05 | $ 9.50 | |
Performance Shares [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Outstanding at January 1 | 23,206 | 20,721 | 8,058 | |
Granted | 5,284 | 9,470 | 16,967 | |
Vested | (33) | (3,268) | (2,404) | |
Cancelled | (4,935) | (3,717) | (1,900) | |
Outstanding at December 31 | 20,223 | 23,206 | 20,721 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at January 1 | $ 11.67 | $ 11.36 | $ 9.15 | |
Granted | 9.35 | 10.68 | 12.28 | |
Vested | 11.33 | 7.90 | 10.68 | |
Cancelled | 11.84 | 10.74 | 11.07 | |
Outstanding at December 31 | $ 8.50 | $ 11.67 | $ 11.36 | |
Conduent [Domain] | Restricted Stock Units (RSUs) [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Other Share Increase (Decrease) | (3,144) | 0 | 0 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Other Share Increase (Decrease), per share | $ 10.07 | $ 0 | $ 0 | |
Conduent [Domain] | Performance Shares [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Other Share Increase (Decrease) | (7,894) | 0 | 0 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Other Share Increase (Decrease), per share | $ 11.09 | $ 0 | $ 0 | |
Conduent [Domain] | Stock options | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Other Share Increase (Decrease) | (1,502) | 0 | 0 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Other Share Increase (Decrease), per share | [1] | $ 6.70 | $ 0 | $ 0 |
Xerox shares, granted in conversion [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Other Share Increase (Decrease) | 1,674 | 0 | 0 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Other Share Increase (Decrease), per share | $ 7.52 | $ 0 | $ 0 | |
Xerox shares, granted in conversion [Member] | Performance Shares [Member] | ||||
Awards Other Than Options, Number of Shares [Roll Forward] | ||||
Other Share Increase (Decrease) | 4,595 | 0 | 0 | |
Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Other Share Increase (Decrease), per share | $ 8.50 | $ 0 | $ 0 | |
[1] | Exercise Price for Stock Options. |
Shareholders' Equity - Share109
Shareholders' Equity - Share-based Compensation, Stock Option Activity (Details) - ACS Member - Stock Options [Member] - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Awards, Stock Options, Number of Shares [Roll Forward] | ||||
Outstanding at January 1, Shares | 3,119 | 6,115 | 14,199 | |
Cancelled/expired, Shares | (392) | (405) | (215) | |
Exercised, Shares | (1,225) | (2,591) | (7,869) | |
Outstanding at December 31, Shares | 0 | 3,119 | 6,115 | |
Exercisable, Shares | 0 | 3,119 | 6,115 | |
Awards, Stock Options, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at January 1, Weighted Average | [1] | $ 6.87 | $ 7 | $ 6.95 |
Cancelled/expired, Weighted Average | [1] | 6.99 | 7.43 | 6.95 |
Exercised, Weighted Average | [1] | 7.03 | 7.09 | 6.92 |
Outstanding at December 31, Weighted Average | [1] | 0 | 6.87 | 7 |
Exercisable, Weighted Average | [1] | $ 0 | $ 6.87 | $ 7 |
[1] | Exercise Price for Stock Options. |
Shareholders' Equity - Share110
Shareholders' Equity - Share-based Compensation, Awards, Unrecognized Compensation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 69 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 30 |
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years) | 2 years 2 months |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 39 |
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years) | 1 year 9 months |
Shareholders' Equity - Share111
Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value (Details) $ in Millions | Dec. 31, 2016USD ($) |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items] | |
Aggregate intrinsic value of outstanding non option awards | $ 48 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items] | |
Aggregate intrinsic value of outstanding non option awards | $ 135 |
Shareholders' Equity - Share112
Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value, Cash Received and Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value | $ 3 | $ 109 | $ 85 |
Cash Received | 0 | 0 | 0 |
Tax Benefit - RSU and PS awards | 1 | 33 | 26 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value | 0 | 35 | 30 |
Cash Received | 0 | 0 | 0 |
Tax Benefit - RSU and PS awards | 0 | 12 | 10 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Intrinsic Value - Stock Options | 3 | 14 | 42 |
Cash Received | 9 | 19 | 55 |
Tax Benefit - Stock Options | $ 1 | $ 5 | $ 15 |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Comprehensive Income [Abstract] | ||||
Translation Adjustment Losses, Pre-tax | $ (344) | $ (660) | $ (736) | |
Translation Adjustment Losses, Net of Tax | [1] | (346) | (660) | (734) |
Changes in fair value of cash flow hedges gains (losses), pre-tax | 18 | 13 | (20) | |
Changes in fair value of cash flow hedges gains (losses), net of tax | 14 | 12 | (10) | |
Changes in cash flow hedges reclassed to earnings, pre-tax | [2] | (40) | 28 | 36 |
Changes in cash flow hedges reclassed to earnings, net of tax | [2] | (28) | 13 | 26 |
Other losses, pre-tax | (1) | (3) | (1) | |
Other losses, net of tax | (1) | (2) | (1) | |
Net Unrealized (Losses) Gains, Pre-tax | (23) | 38 | 15 | |
Net Unrealized (Losses) Gains, Net of Tax | [1] | (15) | 23 | 15 |
Net actuarial/prior service loss, pre-tax | (118) | (73) | (1,291) | |
Net actuarial/prior service loss, net of tax | (87) | (86) | (861) | |
Prior service amortization/curtailment, pre-tax | [3] | (10) | (38) | (46) |
Prior service amortization/curtailment, net of tax | [3] | (6) | (23) | (29) |
Actuarial loss amortization/settlement, pre-tax | [3] | 160 | 186 | 121 |
Actuarial loss amortization/settlement, net of tax | [3] | 109 | 126 | 83 |
Fuji Xerox changes in defined benefit plans, net, pre-tax | [4] | (93) | 21 | 40 |
Fuji Xerox changes in defined benefit plans, net, net of tax | [4] | (93) | 21 | 40 |
Other gains, pre-tax | [5] | 202 | 116 | 106 |
Other gains, net of tax | [5] | 203 | 115 | 105 |
Changes in Defined Benefit Plans Gains (Losses), Pre-tax | 141 | 212 | (1,070) | |
Changes in Defined Benefit Plans Gains (Losses), Net of Tax | [1] | 126 | 153 | (662) |
Other Comprehensive Loss, before Tax | (226) | (410) | (1,791) | |
Other Comprehensive Loss, Net of Tax | [1] | (235) | (484) | (1,381) |
Less: Other comprehensive loss attributable to noncontrolling interests, pre-tax | (3) | (1) | (1) | |
Less: Other comprehensive loss attributable to noncontrolling interests, net of tax | [1] | (3) | (1) | (1) |
Other Comprehensive Loss Attributable to Xerox, Pre-Tax | (223) | (409) | (1,790) | |
Other Comprehensive Loss, Net Attributable to Xerox | [1] | $ (232) | $ (483) | $ (1,380) |
[1] | Refer to Note 21 - Other Comprehensive Loss for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects. | |||
[2] | Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges. | |||
[3] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - 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 in AOCL. |
Other Comprehensive Loss - AOCL
Other Comprehensive Loss - AOCL (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCL [Abstract] | ||||
Cumulative translation adjustments | $ (2,274) | $ (2,402) | $ (1,743) | |
Other unrealized (losses) gains, net | (13) | 1 | (22) | |
Benefit plans net actuarial losses and prior service credits | [1] | (2,061) | (2,241) | (2,394) |
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ (4,348) | $ (4,642) | $ (4,159) | |
[1] | Includes our share of Fuji Xerox. |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic [Abstract] | |||
Net income from continuing operations attributable to Xerox | $ 616 | $ 848 | $ 1,029 |
Accrued dividends on preferred stock | (24) | (24) | (24) |
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 592 | 824 | 1,005 |
Net loss from discontinued operations attributable to Xerox | (1,093) | (374) | (16) |
Adjusted Net (Loss) Income Available to Common Shareholders | $ (501) | $ 450 | $ 989 |
Weighted-average common shares outstanding | 1,013,563 | 1,064,526 | 1,154,365 |
Continuing Operations (in dollars per share) | $ 0.58 | $ 0.77 | $ 0.87 |
Discontinued operations (in dollars per share) | (1.07) | (0.35) | (0.01) |
Basic (Loss) Earnings per Share | $ (0.49) | $ 0.42 | $ 0.86 |
Earnings Per Share, Diluted [Abstract] | |||
Net income from continuing operations | $ 616 | $ 848 | $ 1,029 |
Adjusted Net Income From Continuing Operations Available to Common Shareholders | 592 | 824 | 1,005 |
Net loss from discontinued operations attributable to Xerox | (1,093) | (374) | (16) |
Adjusted Net (Loss) Income Available to Common Shareholders | $ (501) | $ 450 | $ 989 |
Weighted-average common shares outstanding | 1,013,563 | 1,064,526 | 1,154,365 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Adjusted Weighted Average Common Shares Outstanding | 1,023,979 | 1,076,224 | 1,171,597 |
Continuing Operations (in dollars per share) | $ 0.58 | $ 0.77 | $ 0.86 |
Discontinued operations (in dollars per share) | (1.07) | (0.35) | (0.02) |
Total Diluted (Loss) Earnings per Share | $ (0.49) | $ 0.42 | $ 0.84 |
Stock options | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Stock options, Restricted stock and performance shares | 694 | 1,294 | 2,976 |
Restricted stock and performance shares | |||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Stock options, Restricted stock and performance shares | 9,722 | 10,404 | 14,256 |
Earnings (loss) per share, diluted [Member] | |||
Earnings Per Share, Basic [Abstract] | |||
Accrued dividends on preferred stock | $ (24) | $ (24) | $ (24) |
Earnings per Share - Anti-Dilut
Earnings per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total Securities | 49,495 | 46,398 | 48,092 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total Securities | 808 | 1,825 | 3,139 |
Restricted stock and performance shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total Securities | 21,721 | 17,607 | 17,987 |
Convertible preferred stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total Securities | 26,966 | 26,966 | 26,966 |
Earnings per Share - Dividends
Earnings per Share - Dividends Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||||||
Dividends per common share (in dollars per share) | $ 0.0775 | $ 0.0775 | $ 0.0775 | $ 0.0775 | $ 0.0700 | $ 0.0700 | $ 0.0700 | $ 0.0700 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.31 | $ 0.28 | $ 0.25 |
Schedule II Valuation and Qu118
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation and Qualifying Accounts Beginning Balance | $ 192 | $ 213 | $ 260 | |
Additions charged to bad debt provision | [1] | 37 | 49 | 49 |
Amounts (credited) charged to other income statement accounts | [1] | 6 | 5 | 1 |
Deductions and other, net of recoveries | [2] | (61) | (75) | (97) |
Valuation and Qualifying Accounts Ending Balance | 174 | 192 | 213 | |
Accounts Receivable [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation and Qualifying Accounts Beginning Balance | 74 | 82 | 106 | |
Additions charged to bad debt provision | [1] | 13 | 21 | 16 |
Amounts (credited) charged to other income statement accounts | [1] | 2 | 5 | (2) |
Deductions and other, net of recoveries | [2] | (25) | (34) | (38) |
Valuation and Qualifying Accounts Ending Balance | 64 | 74 | 82 | |
Financing Receivable [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation and Qualifying Accounts Beginning Balance | 118 | 131 | 154 | |
Additions charged to bad debt provision | [1] | 24 | 28 | 33 |
Amounts (credited) charged to other income statement accounts | [1] | 4 | 0 | 3 |
Deductions and other, net of recoveries | [2] | (36) | (41) | (59) |
Valuation and Qualifying Accounts Ending Balance | $ 110 | $ 118 | $ 131 | |
[1] | Bad debt provisions relate to estimated losses due to credit and similar collectability issues. Other charges (credits) relate to adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. | |||
[2] | Deductions and other, net of recoveries primarily relates to receivable write-offs, but also includes the impact of foreign currency translation adjustments and recoveries of previously written off receivables. |