Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2011

	Common Stock		Additional Paid-in Capital		Retained Earnings			AOCL			Xerox Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at December 31, 2010	$	1,398	$	6,580	$	6,016		$	(1,988	)	$	12,006		$	153		$	12,159
Net income		—		—		600			—			600			16			616
Translation adjustments		—		—		—			450			450			—			450
Changes in benefit plans(1)		—		—		—			(22	)		(22	)		—			(22	)
Other unrealized losses, net		—		—		—			(15	)		(15	)		—			(15	)
Comprehensive Income											$	1,013		$	16		$	1,029

Cash dividends declared-common stock(3)		—		—		(122	)		—			(122	)		—			(122	)
Cash dividends declared-preferred stock(4)		—		—		(12	)		—			(12	)		—			(12	)
Stock option and incentive plans		5		88		—			—			93			—			93
Tax benefit on stock option and incentive plans, net		—		2		—			—			2			—			2
Distributions to noncontrolling interests		—		—		—			—			—			(10	)		(10	)
Other		—		—		—			—			—			2			2
Balance at June 30, 2011	$	1,403	$	6,670	$	6,482		$	(1,575	)	$	12,980		$	161		$	13,141

	Common Stock		Additional Paid-in Capital		Retained Earnings			AOCL			Xerox Shareholders’ Equity			Non- controlling Interests			Total Equity
Balance at December 31, 2009	$	871	$	2,493	$	5,674		$	(1,988	)	$	7,050		$	141		$	7,191
Net income		—		—		185			—			185			17			202
Translation adjustments		—		—		—			(544	)		(544	)		(1	)		(545	)
Changes in benefit plans(1)		—		—		—			119			119			—			119
Other unrealized gains, net		—		—		—			10			10			—			10
Comprehensive (Loss) Income											$	(230	)	$	16		$	(214	)

ACS Acquisition(2)		490		3,825		—			—			4,315			—			4,315
Cash dividends declared-common stock(3)		—		—		(121	)		—			(121	)		—			(121	)
Cash dividends declared-preferred stock(4)		—		—		(9	)		—			(9	)		—			(9	)
Stock option and incentive plans		23		150		—			—			173			—			173
Tax benefit on stock option and incentive plans, net		—		7		—			—			7			—			7
Distributions to noncontrolling interests		—		—		—			—			—			(7	)		(7	)
Balance at June 30, 2010	$	1,384	$	6,475	$	5,729		$	(2,403	)	$	11,185		$	150		$	11,335

(1)	Refer to Note 13, Employee Benefit Plans for additional information.

(2)	Refer to Note 4 – Acquisitions for additional information.

(3)	Cash dividends declared on common stock of $0.0425 per share in each quarter of 2011 and 2010.

(4)	Cash dividends declared on preferred stock of $20.00 per share in each quarter of 2011 and 2010 except the first quarter of 2010 which was $12.22 per share.

Accumulated Other Comprehensive Loss

AOCL is composed of the following:

	June 30, 2011			December 31, 2010
Cumulative translation adjustments	$	(385	)	$	(835	)
Benefit plans net actuarial losses and prior service credits (1)		(1,189	)		(1,167	)
Other unrealized (losses) gains, net		(1	)		14
Total Accumulated Other Comprehensive Loss	$	(1,575	)	$	(1,988	)

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(1)	Includes our share of Fuji Xerox – refer to Note 13 for additional information.

Comprehensive Income

Comprehensive income is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011			2010
Net income attributable to Xerox	$	319	$	227		$	600		$	185
Translation adjustments		153		(236	)		450			(544	)
Changes in benefit plans		14		20			(22	)		119
Other unrealized gains (losses), net		6		6			(15	)		10
Comprehensive Income (Loss) - Xerox		492		17			1,013			(230	)
Net income attributable to noncontrolling interests		8		9			16			17
Translation adjustments – noncontrolling interests		—		—			—			(1	)
Comprehensive Income – Noncontrolling Interests		8		9			16			16
Total Comprehensive Income (Loss)	$	500	$	26		$	1,029		$	(214	)

- Definition

Tabular disclosure of components of comprehensive income (loss) including, but not limited to: (a) foreign currency translation adjustments; (b) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (c) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (d) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (e) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (f) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (g) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

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