Investment in Affiliates, at Equity

6 Months Ended

Jun. 30, 2011

Investment in Affiliates, at Equity [Abstract]

Investment in Affiliates, at Equity

Note 7 - 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,
	2011		2010		2011		2010
Fuji Xerox	$	31	$	23	$	62	$	18
Other investments		3		5		6		8
Total Equity in Net Income of Unconsolidated Affiliates	$	34	$	28	$	68	$	26

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.  Equity income for the six months ended June 30, 2011 and 2010 includes after-tax restructuring charges of $15 and $27, 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,
	2011		2010		2011		2010
Summary of Operations:
Revenues	$	2,852	$	2,609	$	5,944	$	5,466
Costs and expenses		2,645		2,416		5,542		5,239
Income before income taxes		207		193		402		227
Income tax expense		64		78		124		107
Net Income		143		115		278		120
Less: Net income – noncontrolling interests		1		2		2		2
Net Income - Fuji Xerox	$	142	$	113	$	276	$	118
Weighted Average Rate (1)		81.59		92.08		81.87		91.34

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