Investment in Affiliates, at Equity

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates, at Equity

Investment in Affiliates, at Equity

Our Equity in net income (loss) of unconsolidated affiliates was as follows:

	Three Months Ended March 31,
	2019		2018
Fuji Xerox	$	43	$	(70	)
Other	2		2
Total Equity in net income (loss) of unconsolidated affiliates	$	45	$	(68	)

Fuji Xerox

Equity in net income (loss) 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 (loss) that is different from that implied by our 25% ownership interest. In addition, the Equity in net income (loss) of Fuji Xerox for the three months ended March 31, 2019 and 2018 includes after-tax restructuring and other charges of $12 and $79, respectively.

Fuji Xerox recorded a cumulative charge of JPY 12 billion (approximately $110 based on the Yen/U.S. Dollar average exchange rate for the quarter ended March 31, 2018 of 108.07) in their net loss for the quarter ended March 31, 2018 (our first quarter 2018) related to the correction of certain out-of-period adjustments and misstatements. Our recognition of 25% of Fuji Xerox’s net loss for Xerox’s first quarter 2018 included an approximately $28 charge related to these adjustments and misstatements.

Summarized financial information for Fuji Xerox was as follows:

	Three Months Ended March 31,
	2019		2018
Summary of Operations
Revenues	$	2,461	$	2,465
Costs and expenses	2,204		2,771
Income (Loss) before Income Taxes	257		(306		)
Income tax expense (benefit)	85		(39		)
Net Income (Loss)	172		(267		)
Less: Net income attributable to noncontrolling interests	1		—
Net Income (Loss) – Fuji Xerox	$	171	$	(267	)
Weighted Average Exchange Rate(1)	110.33		108.07

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