Xerox Holdings CorpXRX
Xerox Holdings Corp Goodwill & Intangibles Disclosure
Goodwill, Net and Intangible Assets, Net
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Goodwill, Net
On January 1, 2025, we reassessed our operating and reportable segments and determined that the Company's operations had two operating and reportable segments - Print and Other and IT Solutions. We also determined that there were no other businesses that met the requirements to be considered separate operating or reportable segments. As a result of this change, the carrying amount of Goodwill, net was reassessed and was allocated to our two reporting units - Print and Other and IT Solutions, based on the relative fair value of each reporting unit. As part of the reassessment it was determined that Goodwill was not impaired either before or after the resegmentation. Prior to this reassessment, all Goodwill was allocated to our Print and Other reporting unit. The following presents the changes in the carrying amount of Goodwill, net:
| Print and Other | 2025 | |||||||
| Gross Goodwill - January 1st | $ | 3,808 | ||||||
| Foreign currency translation | 91 | |||||||
Lexmark(1) | 246 | |||||||
| Other | 1 | |||||||
| Gross Goodwill - December 31st | $ | 4,146 | ||||||
| Accumulated impairment - January 1st | $ | (2,245) | ||||||
| Impairment loss | — | |||||||
| Currency | (57) | |||||||
| Accumulated impairment - December 31st | $ | (2,302) | ||||||
Goodwill, net - December 31st | $ | 1,844 | ||||||
| IT Solutions | 2025 | |||||||
| Gross Goodwill - January 1st | $ | 374 | ||||||
| Foreign currency translation | 2 | |||||||
ITsavvy(1) | 2 | |||||||
| Gross Goodwill - December 31st | $ | 378 | ||||||
| Accumulated impairment - January 1st | $ | — | ||||||
| Impairment loss | — | |||||||
| Accumulated impairment - December 31st | $ | — | ||||||
Goodwill, net - December 31st | $ | 378 | ||||||
| Total Xerox | 2025 | 2024 | 2023 | |||||||||||||||||
| Gross Goodwill - January 1st | $ | 4,182 | $ | 3,940 | $ | 4,013 | ||||||||||||||
| Foreign currency translation - Gross | 93 | (29) | 47 | |||||||||||||||||
Acquisitions(1): | ||||||||||||||||||||
| Lexmark | 246 | — | — | |||||||||||||||||
| ITsavvy | 2 | 286 | — | |||||||||||||||||
| U.K. Acquisitions | — | — | 5 | |||||||||||||||||
| Other | 1 | 1 | — | |||||||||||||||||
Dispositions(2) | — | (16) | (125) | |||||||||||||||||
| Gross Goodwill - December 31st | $ | 4,524 | $ | 4,182 | $ | 3,940 | ||||||||||||||
| Accumulated impairment - January 1st | $ | (2,245) | $ | (1,193) | $ | (1,193) | ||||||||||||||
| Impairment loss | — | (1,058) | — | |||||||||||||||||
| Foreign currency translation - Impairment | (57) | 6 | — | |||||||||||||||||
| Accumulated impairment - December 31st | $ | (2,302) | $ | (2,245) | $ | (1,193) | ||||||||||||||
Goodwill, net - December 31st | $ | 2,222 | $ | 1,937 | $ | 2,747 | ||||||||||||||
(1)2025 activity reflects the acquisition of Lexmark, as well as measurement period adjustments for ITsavvy. Refer to Note 6 - Acquisitions and Divestitures for additional information related to acquisitions of Lexmark and ITsavvy.
(2)Reflects the write off of $10 of Goodwill associated with the sales of our business operations in Argentina and Chile, as well as other immaterial dispositions during 2024, and the write-off of $115 of Goodwill associated with the donation of our Palo Alto Research Center (PARC) during 2023. Refer to Note 6 - Acquisitions and Divestitures for additional information related to these dispositions.
During 2024, we concluded that a quantitative test of Goodwill was required. Based on that test, we determined that the estimated fair value of the Print and Other reporting unit (the only reporting unit with Goodwill) had declined below its carrying value and, as a result, we recognized an after-tax non-cash impairment charge of $1,015 ($1,058 pre-tax) related to our Goodwill for the year ended December 31, 2024.
The estimated fair value of the Print and Other and IT Solutions reporting units, for all periods discussed above, is based on estimates and assumptions that are considered Level 3 inputs under the fair value hierarchy.
Intangible Assets, Net
Intangible assets, net were $921 at December 31, 2025. Approximately, $778 related to our Print and Other segment and $143 related to our IT Solutions segment. Approximately $163 of Intangible assets, net were allocated to the IT Solutions segment on January 1, 2025, the date that we reassessed our operating and reportable segments.
Intangible assets were comprised of the following:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Amortization | Gross Carrying Amount | Accumulated Amortization | Net Amount | Gross Carrying Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||||||||||
Customer relationships(1) | 10 years | $ | 856 | $ | 163 | $ | 693 | $ | 324 | $ | 106 | $ | 218 | |||||||||||||||||||||||||||||||
Distribution network(1) | 25 years | 123 | 123 | — | 123 | 123 | — | |||||||||||||||||||||||||||||||||||||
Trademarks(1) | 8 years | 142 | 28 | 114 | 38 | 20 | 18 | |||||||||||||||||||||||||||||||||||||
| Technology and non-compete | 7 years | 135 | 21 | 114 | 12 | 12 | — | |||||||||||||||||||||||||||||||||||||
| Total Intangible Assets | $ | 1,256 | $ | 335 | $ | 921 | $ | 497 | $ | 261 | $ | 236 | ||||||||||||||||||||||||||||||||
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(1)2025 and 2024 balances reflect the acquisitions of Lexmark and ITsavvy, respectively. Refer to Note 6 - Acquisitions and Divestitures for additional information related to acquisitions of Lexmark and ITsavvy.
Excluding the impact of future acquisitions, amortization expense is expected to approximate $123 in 2026, 2027, 2028, 2029 and 2030, respectivelyHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.