Xerox Holdings CorpXRX

Xerox Holdings Corp Fair Value Disclosure

10-KFiled Mar 17, 20262 min read
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,
20252024
Assets
Derivatives$8 $11 
Deferred compensation investments in mutual funds12 13 
Total$20 $24 
Liabilities
Derivatives$10 $8 
Deferred compensation plan liabilities11 11 
Total$21 $19 
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, 2025December 31, 2024
 Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Cash and cash equivalents$512 $512 $576 $576 
Accounts receivable, net1,122 1,122 796 796 
Short-term debt and current portion of long-term debt(1)
231 236 585 592 
Long-term debt
Xerox Holdings Corporation$1,872 $800 $1,634 $1,391 
Xerox Corporation2,142 1,676 1,177 989 
Xerox - Other Subsidiaries(2)
2 2 3 3 
Total Long-term debt$4,016 $2,478 $2,814 $2,383 
_____________
(1)Includes $121 and $388 of Xerox Corporation related party debt for the years ended December 31, 2025 and 2024 , respectively.
(2)Represents subsidiaries of Xerox Corporation.
The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short-term debt, including the current portion of long-term debt, and Long-term debt was estimated based on the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024
2022Feb 23, 2023
2021Feb 23, 2022
2020Feb 25, 2021
2019Feb 28, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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