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(1) Represents assets and liabilities related to our ITO business which is held for sale and being reported as a discontinued operation at
December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale.
Restricted Cash and Investments
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,
2014 2013
Tax and labor litigation deposits in Brazil $ 135 $167
Escrow and cash collections related to receivable sales 107 140
Other restricted cash 10 10
Total Restricted Cash and Investments $252 $317
Net Investment in TRG
At December 31, 2014, our net investment in discontinued operations primarily consisted of a $174 performance-
based instrument relating to the 1997 sale of The Resolution Group (TRG) net of remaining net liabilities associated
with our discontinued operations of $16. 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.
Note 13 – Debt
Short-term borrowings were as follows:
December 31,
2014 2013
Commercial paper $150 $—
Notes Payable 15
Current maturities of long-term debt 1,307 1,112
Discontinued operations - capital leases (1) (31)—
Total Short-term Debt $1,427 $1,117
____________
(1) Represents current capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued
operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 -
Divestitures for additional information regarding this pending sale.
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 Income.
Xerox 2014 Annual Report 96