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,
	2017		2016
Fuji Xerox	$	1,366	$	1,219
Other	38		75
Investments in Affiliates, at Equity	$	1,404	$	1,294

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



	Year Ended December 31,
	2017		2016		2015
Fuji Xerox	$	102	$	114	$	91
Other	13		13		18
Total Equity in Net Income of Unconsolidated Affiliates	$	115	$	127	$	109

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 $1,366 at December 31, 2017, differs from our implied 25% interest in the underlying net assets, or $1,455, 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.

Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information regarding the results of a review of accounting practices at Fuji Xerox and the associated impact of adjustments from that review on previously reported Equity in net income of unconsolidated affiliates. The 2016 and 2015 summarized financial information below for Fuji Xerox has likewise been revised accordingly to reflect the impact of those adjustments.

Summarized financial information for Fuji Xerox is as follows:



	Year Ended December 31,
	2017		2016		2015
Summary of Operations
Revenues	$	9,638	$	10,149	$	9,832
Costs and expenses	9,072		9,460		9,225
Income before income taxes	566		689		607
Income tax expense	144		206		218
Net Income	422		483		389
Less: Net income - noncontrolling interests	5		8		7
Net Income - Fuji Xerox	$	417	$	475	$	382
Balance Sheet
Assets:
Current assets	$	4,315	$	4,313	$	4,350
Long-term assets	4,488		4,516		4,777
Total Assets	$	8,803	$	8,829	$	9,127
Liabilities and Equity:
Short-term debt	$	428	$	681	$	780
Other current liabilities	2,079		2,001		2,011
Long-term debt	76		283		584
Other long-term liabilities	369		587		521
Noncontrolling interests	33		31		31
Fuji Xerox shareholders' equity	5,818		5,246		5,200
Total Liabilities and Equity	$	8,803	$	8,829	$	9,127

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



Financial Statement	Exchange Basis	2017	2016	2015
Summary of Operations	Weighted average rate	112.14	108.76	120.97
Balance Sheet	Year-end rate	112.87	116.53	120.49

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 Services, maintenance and rentals revenues in the Consolidated Statements of Income (Loss). 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,
	2017		2016		2015
Dividends received from Fuji Xerox	$	46	$	47	$	51
Royalty revenue earned	103		110		105
Inventory purchases from Fuji Xerox	1,585		1,641		1,728
Inventory sales to Fuji Xerox	58		80		108
R&D payments received from Fuji Xerox	1		1		1
R&D payments paid to Fuji Xerox	14		13		7

As of December 31, 2017 and 2016, net amounts due to Fuji Xerox were $331 and $273, respectively.

Refer to Note 24 - Subsequent Event for additional information about the agreement between Fujifilm and the Company to combine the Company and Fuji Xerox.