Investment in Affiliates, at Equity

6 Months Ended

Jun. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates, at Equity

Investment in Affiliates, at Equity

Our equity in net income of our unconsolidated affiliates was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Fuji Xerox	$	28	$	31	$	65	$	62
Other investments	3		3		6		6
Total Equity in Net Income of Unconsolidated Affiliates	$	31	$	34	$	71	$	68

Fuji Xerox

Equity in net income of Fuji Xerox is affected by certain adjustments required to reflect the deferral of profit associated with intercompany sales. These adjustments may result in recorded equity income that is different from that implied by our 25% ownership interest. Equity income for the six months ended June 30, 2012 and 2011 includes after-tax restructuring charges of $10 and $15, respectively, primarily reflecting Fuji Xerox’s continued cost-reduction initiatives.

Condensed financial data of Fuji Xerox was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Summary of Operations:
Revenues	$	3,064	$	2,852	$	6,394	$	5,944
Costs and expenses	2,856		2,645		5,940		5,542
Income before income taxes	208		207		454		402
Income tax expense	81		64		178		124
Net Income	127		143		276		278
Less: Net income – noncontrolling interests	1		1		2		2
Net Income – Fuji Xerox	$	126	$	142	$	274	$	276
Weighted Average Rate(1)	80.09		81.59		79.90		81.87

_____________________________

(1) Represents Yen/U.S. Dollar exchange rate used to translate.