Investment in Affiliates, at Equity

12 Months Ended

Dec. 31, 2015

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,
	2015		2014
Fuji Xerox	$	1,315	$	1,275
Other	74		63
Investments in Affiliates, at Equity	$	1,389	$	1,338

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

	Year Ended December 31,
	2015		2014		2013
Fuji Xerox	$	117	$	147	$	156
Other	18		13		13
Total Equity in Net Income of Unconsolidated Affiliates	$	135	$	160	$	169

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 $1,315 at December 31, 2015, differs from our implied 25% interest in the underlying net assets, or $1,399, 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,
	2015		2014		2013
Summary of Operations
Revenues	$	9,925	$	11,112	$	11,415
Costs and expenses	9,198		10,242		10,479
Income before income taxes	727		870		936
Income tax expense	233		262		276
Net Income	494		608		660
Less: Net income - noncontrolling interests	7		4		5
Net Income - Fuji Xerox	$	487	$	604	$	655
Balance Sheet
Assets:
Current assets	$	4,585	$	4,801	$	4,955
Long-term assets	4,946		4,742		5,160
Total Assets	$	9,531	$	9,543	$	10,115
Liabilities and Equity:
Current liabilities	$	2,808	$	2,982	$	3,114
Long-term debt	584		580		978
Other long-term liabilities	511		482		680
Noncontrolling interests	31		30		28
Fuji Xerox shareholders' equity	5,597		5,469		5,315
Total Liabilities and Equity	$	9,531	$	9,543	$	10,115

Yen/U.S. Dollar exchange rates used to translate are as follows:

Financial Statement	Exchange Basis	2015	2014	2013
Summary of Operations	Weighted average rate	121.01	105.58	97.52
Balance Sheet	Year-end rate	120.49	119.46	105.15

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 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,
	2015		2014		2013
Dividends received from Fuji Xerox	$	51	$	58	$	60
Royalty revenue earned	102		115		118
Inventory purchases from Fuji Xerox	1,728		1,831		1,903
Inventory sales to Fuji Xerox	108		120		145
R&D payments received from Fuji Xerox	1		1		2
R&D payments paid to Fuji Xerox	7		17		21

As of December 31, 2015 and 2014, net amounts due to Fuji Xerox were $307 and $339, respectively.