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Segment Reporting, Reconciliation Of Operating Profit Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	$ 401	$ 320	$ 751	$ 310
Segment Profit (Loss)	549	499	1,015	831
Segment Reporting Information Technology [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Segment Profit (Loss)	300	273	566	506
Segment Reporting Information Services [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Segment Profit (Loss)	322	319	588	522
Segment Reporting Reconciling Items Restructuring And Asset Impairment Charges [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	9	(11)	24	(206)
Segment Reporting Reconciling Items Restructuring Charges Of Fuji Xerox [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	(4)	(5)	(15)	(27)
Segment Reporting Reconciling Items Acquisition Related Costs [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	0	(15)	0	(63)
Segment Reporting Reconciling Items Amortization Of Intangible Assets [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	(87)	(85)	(172)	(142)
Segment Reporting Reconciling Items Venezuelan Devaluation Costs [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	0	0	0	(21)
Segment Reporting Reconciling Items Equity In Net (Income) Loss Of Unconsolidated Affiliates [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	(34)	(28)	(68)	(26)
Segment Reporting Reconciling Items Other [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	1	1	0	0
Segment Reporting Reconciling Items ACS Shareholders Litigation Settlement [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	0	(36)	0	(36)
Segment Reporting Reconciling Items Loss on Early Extinguishment of Liability [Member]
Reconciliation to Pre-tax Income (Loss) [Abstract]
Pre-tax income (loss)	$ (33)	$ 0	$ (33)	$ 0

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues
Sales	$ 1,720	$ 1,791	$ 3,391	$ 3,469
Service, outsourcing and rentals	3,731	3,553	7,363	6,423
Finance income	163	164	325	337
Total Revenues	5,614	5,508	11,079	10,229
Costs and Expenses
Cost of sales	1,139	1,172	2,229	2,254
Cost of service, outsourcing and rentals	2,538	2,359	5,052	4,230
Equipment financing interest	60	61	120	125
Research, development and engineering expenses	175	194	359	399
Selling, administrative and general expenses	1,119	1,163	2,238	2,262
Restructuring and asset impairment charges	(9)	11	(24)	206
Acquisition-related costs	0	15	0	63
Amortization of intangible assets	87	85	172	142
Other expenses, net	104	128	182	238
Total Costs and Expenses	5,213	5,188	10,328	9,919
Income before Income Taxes and Equity Income	401	320	751	310
Income tax expense	108	112	203	134
Equity in net income of unconsolidated affiliates	34	28	68	26
Net Income	327	236	616	202
Less: Net income attributable to noncontrolling interests	8	9	16	17
Net Income Attributable to Xerox	$ 319	$ 227	$ 600	$ 185
Basic Earnings per Share	$ 0.22	$ 0.16	$ 0.42	$ 0.14
Diluted Earnings per Share	$ 0.22	$ 0.16	$ 0.41	$ 0.14

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2011
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 - Basis of Presentation References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context specifically requires otherwise. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with the accounting policies described in our 2010 Annual Report to Shareholders, which is incorporated by reference in our 2010 Annual Report on Form 10-K (“2010 Annual Report”), and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in our 2010 Annual Report. In our opinion, all adjustments which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented have been made. Interim results of operations are not necessarily indicative of the results of the full year. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income.”

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Name FASB Interpretation (FIN)
-Publisher FASB
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6359553&loc=d3e288-107754

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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions [Abstract]

Acquisitions

Note 4 – Acquisitions

In February 2011, we acquired Concept Group, Ltd. for $43 net of cash acquired. This acquisition expands our reach into the small and mid-size business market in the U.K. Concept Group has nine locations throughout the U.K. and provides document imaging solutions and technical services to more than 3,000 customers.

In April 2011, we acquired Unamic/HCN B.V., the largest privately-owned customer care provider in the Benelux region, for approximately $55 net of cash acquired. Unamic/HCN’s focus on the Dutch-speaking market will expand ACS’s customer care capabilities in the Netherlands, Belgium, Turkey and Suriname.

In May 2011, we acquired NewField Information Technology, Ltd., a U.K.-based print consultancy and software solution provider, for $17 net of cash acquired. The acquisition expands our market-leading managed print services portfolio that serves workplaces of any size.

GIS acquired four businesses in 2011 for a total of $14 in cash. These acquisitions further GIS’s strategy of creating a nationwide network of office technology suppliers focused on improving document workflow and office efficiency for small and mid-size businesses.

The operating results of the acquisitions described above are not material to our financial statements and are included within our results from the respective acquisition dates. Unamic/HCN and NewField IT are included within our Services segment while Concept Group and the GIS acquisitions are included within our Technology segment. The purchase prices were primarily allocated to intangible assets and goodwill based on third-party valuations and management’s estimates.

ACS Acquisition

In February 2010, we acquired ACS in a cash-and-stock transaction valued at approximately $6.5 billion. In addition, we repaid $1.7 billion of ACS’s debt at acquisition and assumed an additional $0.6 billion of debt. ACS provides business process outsourcing and information technology outsourcing services and solutions to commercial and governmental clients worldwide. The operating results of ACS are included is our Services segment from February 6, 2010.

The unaudited pro-forma results presented below include the effects of the ACS acquisition as if it had been consummated as of January 1, 2010. The pro-forma results include the amortization associated with the acquired intangible assets and interest expense associated with debt used to fund the acquisition, as well as fair value adjustments for unearned revenue, software and land, buildings and equipment. To better reflect the combined operating results, material non-recurring charges directly attributable to the transaction have been excluded. In addition, the pro-forma results do not include any synergies or other expected benefits of the acquisition. Accordingly, the unaudited pro-forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of January 1, 2010.

	Six Months Ended June 30, 2010
	Pro-forma		As Reported
Revenue	$	10,848	$	10,229
Net income – Xerox		171		185
Basic earnings per-share		0.12		0.14
Diluted earnings per-share		0.11		0.14

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Contingencies (Details) - USD ($)	6 Months Ended
Contingencies (Details) - USD ($)	Jun. 30, 2011	Dec. 31, 2010
Other Contingencies [Abstract]
Outstanding principal balance - student loan portfolio	$ 58,900,000,000
Brazil Tax and Labor Contingencies [Member]
Contingencies [Abstract]
Unreserved tax and labor contingencies	$ 1,420,000,000	$ 1,274,000,000
Unreserved balance related to matters where the likelihood of loss is deemed to be remote	With respect to the unreserved balance of 1420 the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the company
Escrow cash deposits	$ 294,000,000
Net book value of assets with liens	19,000,000
Letters of credit	262,000,000
Contractual and Corporate Obligations Guarantee [Member]
Guarantor Obligations [Line Items]
Maximum exposure, undiscounted	429,000,000
Surety Bonds Guarantee [Member]
Guarantor Obligations [Line Items]
Maximum exposure, undiscounted	$ 690,000,000

Financial Instruments

6 Months Ended

Jun. 30, 2011

Financial Instruments [Abstract]

Financial Instruments

Note 11 - Financial Instruments

Interest Rate Risk Management

We use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged.

Fair Value Hedges

At June 30, 2011 we did not have any interest rate swaps. At December 31, 2010 pay variable/receive fixed interest rate swaps, with notional amounts of $950 and net asset fair values of $11, were designated and accounted for as a fair value hedges. The swaps were structured to hedge the fair value of related debt by converting them from fixed rate instruments to variable rate instruments. No ineffective portion was recorded to earnings during 2011 or 2010.

Terminated Swaps

During the six months ended June 30, 2011, we terminated early several interest rate swaps that had been designated as fair value hedges of certain debt instruments. The net proceeds from these terminated swaps were $27 and are classified in cash flows from operations in the Statement of Cash Flows. These terminated interest rate swaps had an aggregate notional value of $2,150. The fair value adjustment of $(27) to the debt instruments is being amortized to interest income over the remaining term of the related notes.

Foreign Exchange Risk Management

We are a global company that is exposed to foreign currency exchange rate fluctuations in the normal course of our business. As a part of our foreign exchange risk management strategy, we use derivative instruments, primarily forward contracts and purchase option contracts, to hedge the following foreign currency exposures, thereby reducing volatility of earnings or protecting fair values of assets and liabilities:

·	Foreign currency-denominated assets and liabilities

·	Forecasted purchases and sales in foreign currency

Summary of Foreign Exchange Hedging Positions

At June 30, 2011, we had outstanding forward exchange and purchased option contracts with gross notional values of $3,675, which is reflective of the amounts that are normally outstanding at any point during the year. These contracts generally mature in 12 months or less.

The following is a summary of the primary hedging positions and corresponding fair values as of June 30, 2011:

Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)(1)
Euro/U.K. Pound Sterling	$	811	$	12
U.S. Dollar/Euro		620		(10	)
Japanese Yen/U.S. Dollar		388		6
Japanese Yen/Euro		323		(3	)
Swiss Franc/Euro		228		6
U.K. Pound Sterling/U.S. Dollar		214		—
Canadian Dollar/Euro		155		—
Euro/U.S. Dollar		138		2
U.K. Pound Sterling/Euro		125		(4	)
Swedish Kronor/Euro		98		—
U.K. Pound Sterling/Swiss Franc		79		(3	)
Mexican Peso/U.S. Dollar		67		2
Danish Krone/Euro		61		—
Indian Rupee/U.S. Dollar		58		1
Norwegian Kroner/Euro		52		—
All Other		258		(3	)
Total Foreign Exchange Hedging	$	3,675	$	6

___________

(1)	Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at June 30, 2011.

Foreign Currency Cash Flow Hedges

We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases, sales and expenses. No amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss was included in the assessment of hedge effectiveness. The net asset fair value of these contracts was less than $1 and $18 as of June 30, 2011 and December 31, 2010, respectively.

Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:

Designation of Derivatives	Balance Sheet Location	June 30, 2011			December 31, 2010

Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	10		$	19
	Other current liabilities		(10	)		(1	)
Interest rate swaps	Other long-term assets		—			11
	Net Designated Asset	$	—		$	29

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	23		$	26
	Other current liabilities		(17	)		(18	)
	Net Undesignated Asset	$	6		$	8

Summary of Derivatives	Total Derivative Assets	$	33		$	56
	Total Derivative Liabilities		(27	)		(19	)
	Net Derivative Asset	$	6		$	37

Summary of Derivative Instruments Gains (Losses)

Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains and (losses).

Designated Derivative Instruments Gains (Losses)

The following tables provide a summary of gains (losses) on derivative instruments:

		Derivative Gain (Loss) Recognized in Income Three Months Ended June 30,				Hedged Item Gain (Loss) Recognized in Income Three Months Ended June 30,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2011		2010		2011			2010
Interest rate contracts	Interest expense	$	17	$	55	$	(17	)	$	(55	)

		Derivative Gain (Loss) Recognized in Income Six Months Ended June 30,				Hedged Item Gain (Loss) Recognized in Income Six Months Ended June 30,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2011		2010		2011			2010
Interest rate contracts	Interest expense	$	16	$	77	$	(16	)	$	(77	)

	Derivative Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended June 30,					Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Three Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2011		2010		Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	2011			2010
Foreign exchange contracts – forwards	$	3	$	16	Cost of sales	$	(7	)	$	7

	Derivative Gain (Loss) Recognized in OCI (Effective Portion) Six Months Ended June 30,						Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2011			2010		Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	2011			2010
Foreign exchange contracts – forwards	$	(24	)		25	Cost of sales	$	(4	)		11

No amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) was included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

At June 30, 2011, net gains of less than $1 were recorded in accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified to net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.

Non-Designated Derivative Instruments Gains (Losses)

Non-designated derivative instruments are primarily instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges since there is a natural offset for the re-measurement of the underlying foreign currency-denominated asset or liability.

The following table provides a summary of gains (losses) on non-designated derivative instruments:

		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain (Loss)	2011		2010		2011			2010
Foreign exchange contracts – forwards	Other expense - Currency gains (losses), net	$	15	$	67	$	(16	)	$	89

During the three months ended June 30, 2011 and 2010, we recorded Currency gains, net of $0 and $2, respectively. During the six months ended June 30, 2011 and 2010, we recorded Currency losses, net of $(1) and $(20), respectively. Currency losses, net includes the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives, as well as the re-measurement of foreign currency-denominated assets and liabilities.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

+ Details

Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2011

Receivables, Net [Abstract]

Schedule of accounts receivables sales

Accounts receivables sales were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Accounts receivable sales	$	819	$	535	$	1,549	$	1,012
Deferred proceeds		103		73		197		115
Fees associated with sales		5		3		9		7
Estimated increase (decrease) to operating cash flows(1)		29		86		5		(68	)

___________

(1)	Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency.

Allowance for credit losses rollforward, and the investment in finance receivables

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:

	United States			Canada			Europe			Other(3)		Total
Allowance for Credit Losses:
Balance December 31, 2010	$	91		$	37		$	81		$	3	$	212
Provision		7			4			11			—		22
Charge-offs		(10	)		(5	)		(8	)		—		(23	)
Recoveries and other(1)		(1	)		2			3			—		4
Balance March 31, 2011		87			38			87			3		215
Provision		1			3			14			—		18
Charge-offs		(6	)		(5	)		(11	)		—		(22	)
Recoveries and other(1)		(1	)		—			(1	)		—		(2	)
Balance June 30, 2011	$	81		$	36		$	89		$	3	$	209

Finance Receivables as of June 30, 2011 collectively evaluated for impairment(2)	$	2,979		$	867		$	2,919		$	88	$	6,853

Allowance for Credit Losses:
Balance December 31, 2009	$	99		$	33		$	87		$	3	$	222
Provision		10			6			17			—		33
Charge-offs		(22	)		(6	)		(11	)		—		(39	)
Recoveries and other(1)		1			2			(5	)		—		(2	)
Balance March 31, 2010		88			35			88			3		214
Provision		15			6			12			—		33
Charge-offs		(17	)		(8	)		(19	)		—		(44	)
Recoveries and other(1)		—			—			(6	)		—		(6	)
Balance June 30, 2010	$	86		$	33		$	75		$	3	$	197

Finance Receivables as of June 30, 2010 collectively evaluated for impairment(2)	$	3,248		$	835		$	2,447		$	45	$	6,575

(1)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(2)	Total Finance Receivables exclude residual values of $9 and $14, and the allowance for credit losses of $209 and $197 at June 30, 2011 and 2010, respectively.

(3)	Includes developing market countries and smaller units.

Credit quality indicators for finance receivables

Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:

	June 30, 2011
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	348	$	381	$	171	$	900
Government and Education		791		21		6		818
Graphic Arts		119		217		147		483
Industrial		199		80		34		313
Healthcare		130		45		25		200
Other		98		104		63		265
Total United States		1,685		848		446		2,979
Finance and Other Services		156		125		51		332
Government and Education		133		10		5		148
Graphic Arts		38		43		41		122
Industrial		60		43		34		137
Other		73		42		13		128
Total Canada		460		263		144		867
France		238		428		81		747
U.K./Ireland		189		193		54		436
Central(1)		257		671		52		980
Southern(2)		217		387		35		639
Nordics(3)		53		62		2		117
Total Europe		954		1,741		224		2,919
Other		60		17		11		88
Total	$	3,159	$	2,869	$	825	$	6,853

	December 31, 2010
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	360	$	401	$	190	$	951
Government and Education		849		21		7		877
Graphic Arts		147		217		156		520
Industrial		206		91		38		335
Healthcare		134		48		32		214
Other		102		109		69		280
Total United States		1,798		887		492		3,177
Finance and Other Services		150		127		56		333
Government and Education		127		12		3		142
Graphic Arts		32		35		48		115
Industrial		57		47		30		134
Other		88		47		13		148
Total Canada		454		268		150		872
France		219		374		82		675
U.K./Ireland		206		164		51		421
Central(1)		297		551		65		913
Southern(2)		263		237		81		581
Nordics(3)		50		63		3		116
Total Europe		1,035		1,389		282		2,706
Other		33		33		—		66
Total	$	3,320	$	2,577	$	924	$	6,821

(1)	Switzerland, Germany, Austria, Belgium and Holland.

(2)	Italy, Greece, Spain and Portugal.

(3)	Sweden, Norway, Denmark and Finland.

Aging of billed finance receivables

The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows:

	June 30, 2011
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	19	$	3	$	1	$	23	$	877	$	900	$	22
Government and Education		21		3		3		27		791		818		40
Graphic Arts		19		2		1		22		461		483		12
Industrial		9		2		1		12		301		313		11
Healthcare		6		1		1		8		192		200		8
Other		7		1		—		8		257		265		7
Total United States		81		12		7		100		2,879		2,979		100
Canada		5		3		1		9		858		867		25
France		1		2		1		4		743		747		6
U.K./Ireland		7		1		1		9		427		436		6
Central(1)		10		4		3		17		963		980		30
Southern(2)		31		9		14		54		585		639		74
Nordics(3)		2		-		-		2		115		117		-
Total Europe		51		16		19		86		2,833		2,919		116
Other		2		1		-		3		85		88		-
Total	$	139	$	32	$	27	$	198	$	6,655	$	6,853	$	241

	December 31, 2010
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	23	$	5	$	2	$	30	$	921	$	951	$	23
Government and Education		26		6		3		35		842		877		40
Graphic Arts		21		3		1		25		495		520		16
Industrial		11		2		1		14		321		335		10
Healthcare		6		2		1		9		205		214		9
Other		8		2		—		10		270		280		8
Total United States		95		20		8		123		3,054		3,177		106
Canada		3		3		1		7		865		872		28
France		1		1		—		2		673		675		5
U.K./Ireland		4		1		1		6		415		421		7
Central(1)		9		2		4		15		898		913		39
Southern(2)		32		10		15		57		524		581		99
Nordics(3)		1		—		—		1		115		116		2
Total Europe		47		14		20		81		2,625		2,706		152
Other		2		—		—		2		64		66		—
Total	$	147	$	37	$	29	$	213	$	6,608	$	6,821	$	286

(1)	Switzerland, Germany, Austria, Belgium and Holland.

(2)	Italy, Greece, Spain and Portugal.

(3)	Sweden, Norway, Denmark and Finland.

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2011	Dec. 31, 2010
Carrying Amount [Member] \| Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1,098	$ 1,211
Accounts receivable, net	2,921	2,826
Short-term debt	2,197	1,370
Long-term debt	7,113	7,237
Liability to subsidiary trust issuing preferred securities	0	650
Fair Value, Measurements, Nonrecurring [Member] \| Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,098	1,211
Accounts receivable, net	2,921	2,826
Short-term debt	2,238	1,396
Long-term debt	7,630	7,742
Liability to subsidiary trust issuing preferred securities	0	670
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets:
Foreign exchange contracts-forwards	33	45
Interest rate swaps	0	11
Deferred compensation investments in cash surrender life insurance	72	70
Deferred compensation investments in mutual funds	23	22
Total	128	148
Liabilities:
Foreign exchange contracts-forwards	27	19
Deferred compensation plan liabilities	100	98
Total	$ 127	$ 117

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2011

Acquisitions [Abstract]

Pro-forma Financial Data

Six Months Ended June 30, 2010
	Pro-forma		As Reported
Revenue	$	10,848	$	10,229
Net income – Xerox		171		185
Basic earnings per-share		0.12		0.14
Diluted earnings per-share		0.11		0.14

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

Subsequent Events (Details) $ in Millions	6 Months Ended
Subsequent Events (Details) $ in Millions	Jun. 30, 2011 USD ($)
Acquisition [Member]
Subsequent Event [Line Items]
Subsequent event, amount	$ 45

Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2011

Mar. 31, 2011

Jun. 30, 2010

Mar. 31, 2010

Jun. 30, 2011

Jun. 30, 2010

Dec. 31, 2010

Shareholders' Equity [Roll Forward]

Balance at beginning of period

$ 12,159

$ 7,191

$ 12,159

$ 7,191

Net (loss) income

$ 327

$ 236

616

202

Translation adjustments

450

(545)

Changes in benefit plans

(22)

119

Other unrealized gains (losses)

(15)

Comprehensive income (loss)

500

1,029

(214)

ACS Acquisition

^[1]

4,315

Cash dividends declared-common stock

^[2]

(122)

(121)

Cash dividends declared-preferred stock

^[3]

(12)

(9)

Stock option and incentive plans, net

173

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

(10)

(7)

Other

Balance at end of period

$ 13,141

$ 11,335

$ 13,141

$ 11,335

Cash dividends declared on common stock (in dollars per share)

$ 0.0425

$ 0.0850

Cash dividends declared on preferred stock (in dollars per share)

$ 20.00

$ 12.22

Comprehensive Income [Abstract]

Net income (loss) attributable to Xerox

$ 319

$ 227

$ 600

$ 185

Translation adjustments

153

(236)

450

(544)

Changes in benefit plans

(22)

119

Other unrealized gains (losses), net

(15)

Comprehensive Income (Loss) - Xerox

492

1,013

(230)

Net income attributable to noncontrolling interests

Translation adjustments - noncontrolling interests

(1)

Comprehensive Income - Noncontrolling Interests

Total Comprehensive Income (Loss)

500

1,029

(214)

Accumulated Other Comprehensive Loss (AOCL) [Abstract]

Cumulative translation adjustments

(385)

$ (835)

Benefit plans net actuarial losses and prior service credits

^[4]

(1,189)

(1,167)

Other unrealized (losses) gains, net

(1)

Total Accumulated Other Comprehensive Loss

(1,575)

$ (1,988)

Xerox Shareholders Equity [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

$ 12,006

$ 7,050

12,006

7,050

Net (loss) income

600

185

Translation adjustments

450

(544)

Changes in benefit plans

^[5]

(22)

119

Other unrealized gains (losses)

(15)

Comprehensive income (loss)

1,013

(230)

ACS Acquisition

^[1]

4,315

Cash dividends declared-common stock

^[2]

(122)

(121)

Cash dividends declared-preferred stock

^[3]

(12)

(9)

Stock option and incentive plans, net

173

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

Other

Balance at end of period

12,980

11,185

12,980

11,185

Comprehensive Income [Abstract]

Total Comprehensive Income (Loss)

1,013

(230)

Common Stock [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

1,398

871

1,398

871

Net (loss) income

Translation adjustments

Changes in benefit plans

^[5]

Other unrealized gains (losses)

ACS Acquisition

^[1]

490

Cash dividends declared-common stock

^[2]

Cash dividends declared-preferred stock

^[3]

Stock option and incentive plans, net

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

Other

Balance at end of period

1,403

1,384

1,403

1,384

Additional Paid-in Capital [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

6,580

2,493

6,580

2,493

Net (loss) income

Translation adjustments

Changes in benefit plans

^[5]

Other unrealized gains (losses)

ACS Acquisition

^[1]

3,825

Cash dividends declared-common stock

^[2]

Cash dividends declared-preferred stock

^[3]

Stock option and incentive plans, net

150

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

Other

Balance at end of period

6,670

6,475

6,670

6,475

Retained Earnings [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

6,016

5,674

6,016

5,674

Net (loss) income

600

185

Translation adjustments

Changes in benefit plans

^[5]

Other unrealized gains (losses)

ACS Acquisition

^[1]

Cash dividends declared-common stock

^[2]

(122)

(121)

Cash dividends declared-preferred stock

^[3]

(12)

(9)

Stock option and incentive plans, net

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

Other

Balance at end of period

6,482

5,729

6,482

5,729

Accumulated Other Comprehensive Income [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

(1,988)

Net (loss) income

Translation adjustments

450

(544)

Changes in benefit plans

^[5]

(22)

119

Other unrealized gains (losses)

(15)

ACS Acquisition

^[1]

Cash dividends declared-common stock

^[2]

Cash dividends declared-preferred stock

^[3]

Stock option and incentive plans, net

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

Other

Balance at end of period

(1,575)

(2,403)

(1,575)

(2,403)

Non-controlling interests [Member]

Shareholders' Equity [Roll Forward]

Balance at beginning of period

$ 153

$ 141

153

141

Net (loss) income

Translation adjustments

(1)

Changes in benefit plans

^[5]

Other unrealized gains (losses)

Comprehensive income (loss)

ACS Acquisition

^[1]

Cash dividends declared-common stock

^[2]

Cash dividends declared-preferred stock

^[3]

Stock option and incentive plans, net

Tax benefit on stock option and incentive plans, net

Distributions to noncontrolling interests

(10)

(7)

Other

Balance at end of period

$ 161

$ 150

161

150

Comprehensive Income [Abstract]

Total Comprehensive Income (Loss)

$ 16

[1]	(2) Refer to Note 4 - Acquisitions for additional information.
[2]	(3) Cash dividends declared on common stock of $0.0425 per share in each quarter of 2011 and 2010.
[3]	(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.
[4]	(1) Includes our share of Fuji Xerox - refer to Note 13 for additional information.
[5]	(1) Refer to Note 13, Employee Benefit Plans for additional information.

Shareholders' Equity

6 Months Ended

Jun. 30, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 14 – Shareholders’ Equity

	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.

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	)

Accumulated Other Comprehensive Loss (“AOCL”)

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	)

_______________

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

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
-Number 43
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-Section B
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Label	Element	Value
Segment Reporting Information Services [Member]
Net (loss) income	us-gaap_ProfitLoss	$ 322,000,000
Net (loss) income	us-gaap_ProfitLoss	588,000,000
Net (loss) income	us-gaap_ProfitLoss	319,000,000
Net (loss) income	us-gaap_ProfitLoss	522,000,000
Segment Reporting Information Technology [Member]
Net (loss) income	us-gaap_ProfitLoss	300,000,000
Net (loss) income	us-gaap_ProfitLoss	566,000,000
Net (loss) income	us-gaap_ProfitLoss	273,000,000
Net (loss) income	us-gaap_ProfitLoss	506,000,000
All Other Segments [Member]
Net (loss) income	us-gaap_ProfitLoss	(73,000,000)
Net (loss) income	us-gaap_ProfitLoss	(139,000,000)
Net (loss) income	us-gaap_ProfitLoss	(93,000,000)
Net (loss) income	us-gaap_ProfitLoss	$ (197,000,000)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
-Number 51
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
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-Section 55
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=6921628&loc=SL4569616-111683

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-URI http://asc.fasb.org/extlink&oid=6922042&loc=SL4591551-111686

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Jun. 30, 2010	Mar. 31, 2010	Jun. 30, 2011	Jun. 30, 2010
Earnings per Share [Abstract]
Adjusted Net Income (Loss) Available to Common Shareholders	$ 313		$ 221		$ 588	$ 176
Basic Earnings (Loss) per Share (in dollars per share)	$ 0.22		$ 0.16		$ 0.42	$ 0.14
Diluted Earnings (Loss) per Share:
Interest on Convertible Securities, net	$ 0		$ 0		$ 1	$ 0
Adjusted Net Income (Loss) Available to Common Shareholders	$ 313		$ 221		$ 589	$ 176
Restricted stock and performance shares	22,000,000		18,984,000		20,903,000	16,756,000
Convertible Securities (in shares)	1,992,000		1,992,000		1,992,000	0
Adjusted Weighted Average Common Shares Outstanding (in shares)	1,437,896,000		1,418,652,000		1,436,445,000	1,294,275,000
Diluted (Loss) Earnings per Share (in dollars per share)	$ 0.22		$ 0.16		$ 0.41	$ 0.14
Stock options (in shares)	11,698,000		14,393,000		12,485,000	12,439,000
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	11,698,000		14,393,000		12,485,000	12,439,000
Total anti-dilutive securities (in shares)	96,603		149,608		96,913	155,782
Dividends per common share (in dollars per share)	$ 0.0425	$ 0.0425	$ 0.0425	$ 0.0425	$ 0.0850	$ 0.0850
Basic Earnings (Loss) per Share:
Net income (loss) attributable to Xerox	$ 319		$ 227		$ 600	$ 185
Accrued dividends on preferred stock	$ (6)		$ (6)		$ (12)	$ (9)
Weighted-average common shares outstanding (in shares)	1,402,206,000		1,383,283,000		1,401,065,000	1,265,080,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	53,745,000		109,790,000		52,958,000	111,744,000
Restricted Stock and performance shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	15,892,000		12,852,000		16,989,000	15,080,000
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	26,966,000		26,966,000		26,966,000	26,966,000
Convertible Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	0		0		0	1,992,000

Debt	6 Months Ended
Debt	Jun. 30, 2011
Debt [Abstract]
Debt	Note 9 – Debt Xerox Capital Trust I In May 2011, Xerox Capital Trust I (“Trust I”), our wholly owned subsidiary, redeemed its 8% Preferred Securities due in 2027 of $650 with funds received from the settlement of our liability to Trust I. The settlement and redemption resulted in a pre-tax loss on extinguishment of debt of $33 ($20 after-tax), representing the call premium of approximately $10 and the write-off of unamortized debt costs and other liability carrying value adjustments of approximately $23. Senior Notes In May 2011, we issued $300 of Floating Rate Senior Notes due 2014 (the “2014 Floating Rate Notes”) and $700 of 4.50% Senior Notes due 2021 (the “2021 Senior Notes”). The 2014 Floating Rate Notes were issued at par and the 2021 Senior Notes were issued at 99.246% of par, resulting in aggregate net proceeds for both notes of approximately $995. The 2014 Floating Rate Notes accrue interest at a rate per annum, reset quarterly, equal to the three-month LIBOR plus 0.820% and are payable quarterly. The 2021 Senior Notes accrued interest at a rate of 4.50% per annum and are payable semi-annually. As a result of the discount, they have a weighted average effective interest rate of 4.595%. Proceeds from the offering were used to redeem the $650 Trust I 8% Preferred Securities mentioned above and for general corporate purposes. Credit Facility In the second quarter 2011, two lenders to our Credit Facility agreed to extend the maturity date of their portion of the Facility, such that the entire Credit Facility now has a maturity date of April 30, 2013. Prior to this amendment, 10% of the Credit Facility had a maturity date of April 30, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2011
Subsequent Events [Abstract]
Subsequent Events	Note 17 – Subsequent Events In July 2011, we acquired Education Sales and Marketing, LLC (“ESM”), a leading contact center firm dedicated to school enrollment, for approximately $45 in cash. The acquisition of ESM will enable us to begin offering broader services to assist post-secondary schools in attracting and retaining the most qualified students. We are in the process of determining the purchase price allocation.

Interest Expense and Income

6 Months Ended

Jun. 30, 2011

Interest Expense And Income Disclosure [Abstract]

Interest Expense and Income

Note 10 - Interest Expense and Income

Interest expense and interest income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Interest expense(1)	$	124	$	153	$	251	$	306
Interest income(2)		168		168		337		346

(1)	Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

(2)	Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

Investment in Affiliates, at Equity (Details)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2011

USD ($)

Jun. 30, 2010

USD ($)

Jun. 30, 2011

USD ($)

Jun. 30, 2010

USD ($)

Schedule of Equity Method Investments [Line Items]

Total Equity in Net Income (Loss) of Unconsolidated Affiliates

$ 34

$ 28

$ 68

$ 26

Fuji Xerox [Member]

Schedule of Equity Method Investments [Line Items]

Total Equity in Net Income (Loss) of Unconsolidated Affiliates

$ 31

$ 62

Ownership percentage (in hundredths)

25.00%

After-tax restructuring charges included in equity income

$ 15

Summary of Operations:

Revenues

$ 2,852

2,609

5,944

5,466

Cost and expenses

2,645

2,416

5,542

5,239

Income (loss) before income taxes

207

193

402

227

Income tax expense

124

107

Net Income

143

115

278

120

Less: Net income - noncontrolling interests

Net Income - Fuji Xerox

$ 142

$ 113

$ 276

$ 118

Weighted Average Rate used to translate the Summary of Operations

^[1]

81.59

92.08

81.87

91.34

Other Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Total Equity in Net Income (Loss) of Unconsolidated Affiliates

$ 3

$ 5

$ 6

$ 8

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

Segment Reporting (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Segment Reporting (Details) - USD ($) $ in Millions	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Segment Reporting Information [Line Items]
Segment Revenue	$ 5,614	$ 5,508	$ 11,079	$ 10,229
Segment Profit (Loss)	549	499	1,015	831
Segment Reporting Information Technology [Member]
Segment Reporting Information [Line Items]
Segment Revenue	2,552	2,555	5,047	5,038
Segment Profit (Loss)	300	273	566	506
Segment Reporting Information Services [Member]
Segment Reporting Information [Line Items]
Segment Revenue	2,672	2,529	5,256	4,372
Segment Profit (Loss)	322	319	588	522
Segment Reporting Information Other [Member]
Segment Reporting Information [Line Items]
Segment Revenue	390	424	776	819
Segment Profit (Loss)	$ (73)	$ (93)	$ (139)	$ (197)

Debt (Details) - USD ($) $ in Millions	6 Months Ended
Debt (Details) - USD ($) $ in Millions	Jun. 30, 2011	May 31, 2011
Debt Instrument [Line Items]
Net proceeds from issuance of debt	$ 995
Weighted average effective interest rate (in hundredths)		4.595%
Preferred Security, Xerox Capital Trust I due 2027 [Member]
Extinguishment of Debt [Line Items]
Fixed interest rate (in hundredths)		8.00%
Amount of debt extinguished	650
Pre-tax loss on extinguishment	33
After-tax loss on extinguishment	20
Call premium of debt extinguished	10
Unamortized debt costs and other liability carrying value adjustments	$ 23
Debt Instrument [Line Items]
Fixed interest rate (in hundredths)		8.00%
Floating Rate Senior Notes due 2014 [Member]
Debt Instrument [Line Items]
Issued debt, face amount		$ 300
Percentage of par issued (in hundredths)		100.00%
Description of variable rate basis	The 2014 Floating Rate Notes accrue interest at a rate per annum, reset quarterly, equal to the three-month LIBOR plus 0.820% and are payable quarterly.
Basis spread on variable rate (in hundredths)		0.82%
Senior Notes due 2021 [Member]
Extinguishment of Debt [Line Items]
Fixed interest rate (in hundredths)		4.50%
Debt Instrument [Line Items]
Issued debt, face amount		$ 700
Fixed interest rate (in hundredths)		4.50%
Percentage of par issued (in hundredths)		99.246%

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2011 USD ($) shares
Entity Registrant Name	Xerox Corporation
Entity Central Index Key	0000108772
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float \| $	$ 14,610,164,902
Entity Common Stock, Shares Outstanding \| shares	1,403,474,054
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2011

Compensation and Retirement Disclosure [Abstract]

Components of net periodic benefit cost and other changes in plan assets and benefit obligations

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:

	Pension Benefits												Retiree Health
	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010			2011			2010			2011			2010
Components of Net Periodic Benefit Costs:
Service cost	$	46		$	42		$	94		$	88		$	2		$	2		$	4		$	4
Interest cost		121			118			239			238			12			14			24			28
Expected return on plan assets		(130	)		(116	)		(257	)		(236	)		—			—			—			—
Recognized net actuarial loss		19			19			36			35			—			—			—			—
Amortization of prior service credit		(6	)		(5	)		(12	)		(10	)		(10	)		(7	)		(20	)		(13	)
Recognized settlement loss		20			15			50			46			—			—			—			—
Net periodic benefit cost		70			73			150			161			4			9			8			19
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial loss (gain) (2)		(9	)		—			(9	)		—			—			—			—			—
Amortization of net prior service credit		6			5			12			10			10			7			20			13
Amortization of net actuarial losses		(39	)		(34	)		(86	)		(81	)		—			—			—			—
Total recognized in Other Comprehensive Income(1)		(42	)		(29	)		(83	)		(71	)		10			7			20			13
Total recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	28		$	44		$	67		$	90		$	14		$	16		$	28		$	32

________________

(1)	Amount represents the pre-tax effect included within Other comprehensive income. The amount, net of tax, is included within Note 14, Shareholders’ Equity.

(2)	Represents adjustments for the actual valuation results based on January 1, 2011 plan census data for the U.S.

Summary of the components of the Net change in benefit plans included within Other comprehensive income

The following table provides a summary of the components of the Net change in benefit plans included within Other comprehensive income as reported in Note 14, Shareholders’ Equity:

	Three Months Ended June 30,						Six Months Ended June 30,
(Expense)/benefit	2011			2010			2011			2010
Other changes in plan assets and benefit obligations	$	32		$	22		$	63		$	58
Income tax		(11	)		(6	)		(22	)		(20	)
Fuji Xerox changes in defined benefit plans(1)		(3	)		(3	)		(21	)		33
Currency, net		(4	)		11			(40	)		53
Other, net		—			(4	)		(2	)		(5	)
Net Change in Benefit Plans	$	14		$	20		$	(22	)	$	119

________________

(1)	Represents our share of Fuji Xerox’s changes.

Contingencies

6 Months Ended

Jun. 30, 2011

Contingencies [Abstract]

Contingencies

Note 16 - Contingencies

Brazil Tax and Labor Contingencies

Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our position. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. As of June 30, 2011, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of any related interest, amounted to approximately $1,420 with the increase from December 31, 2010 balance of approximately $1,274, primarily related to interest, currency and adjustments to existing cases. With respect to the unreserved balance of $1,420, the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the company. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute. As of June 30, 2011 we had $294 of escrow cash deposits for matters we are disputing, and there are liens on certain Brazilian assets with a net book value of $19 and additional letters of credit of approximately $262, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens would be removed to the extent the matters are resolved in our favor. We routinely assess all these matters as to probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.

Legal Matters

As more fully discussed below, we are involved in a variety of claims, lawsuits, investigations and proceedings concerning securities law, intellectual property law, environmental law, employment law and the Employee Retirement Income Security Act (“ERISA”). We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs.

Litigation Against the Company

In re Xerox Corporation Securities Litigation: A consolidated securities law action (consisting of 17 cases) is pending in the United States District Court for the District of Connecticut. Defendants are the Company, Barry Romeril, Paul Allaire and G. Richard Thoman. The consolidated action is a class action on behalf of all persons and entities who purchased Xerox Corporation common stock during the period October 22, 1998 through October 7, 1999 inclusive (“Class Period”) and who suffered a loss as a result of misrepresentations or omissions by Defendants as alleged by Plaintiffs (the “Class”). The Class alleges that in violation of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended (“1934 Act”), and SEC Rule 10b-5 thereunder, each of the defendants is liable as a participant in a fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of the Company’s common stock during the Class Period by disseminating materially false and misleading statements and/or concealing material facts relating to the defendants’ alleged failure to disclose the material negative impact that the April 1998 restructuring had on the Company’s operations and revenues. The complaint further alleges that the alleged scheme: (i) deceived the investing public regarding the economic capabilities, sales proficiencies, growth, operations and the intrinsic value of the Company’s common stock; (ii) allowed several corporate insiders, such as the named individual defendants, to sell shares of privately held common stock of the Company while in possession of materially adverse, non-public information; and (iii) caused the individual plaintiffs and the other members of the purported class to purchase common stock of the Company at inflated prices. The complaint seeks unspecified compensatory damages in favor of the plaintiffs and the other members of the purported class against all defendants, jointly and severally, for all damages sustained as a result of defendants’ alleged wrongdoing, including interest thereon, together with reasonable costs and expenses incurred in the action, including counsel fees and expert fees. In 2001, the Court denied the defendants’ motion for dismissal of the complaint. The plaintiffs’ motion for class certification was denied by the Court in 2006, without prejudice to refiling. In February 2007, the Court granted the motion of the International Brotherhood of Electrical Workers Welfare Fund of Local Union No. 164, Robert W. Roten, Robert Agius (“Agius”) and Georgia Stanley to appoint them as additional lead plaintiffs. In July 2007, the Court denied plaintiffs’ renewed motion for class certification, without prejudice to renewal after the Court holds a pre-filing conference to identify factual disputes the Court will be required to resolve in ruling on the motion. After that conference and Agius’s withdrawal as lead plaintiff and proposed class representative, in February 2008 plaintiffs filed a second renewed motion for class certification. In April 2008, defendants filed their response and motion to disqualify Milberg LLP as a lead counsel. On September 30, 2008, the Court entered an order certifying the class and denying the appointment of Milberg LLP as class counsel. Subsequently, on April 9, 2009, the Court denied defendants’ motion to disqualify Milberg LLP. On November 6, 2008, the defendants filed a motion for summary judgment. Briefing with respect to the motion is complete. The Court has not yet rendered a decision. The parties also filed motions to exclude the testimony of certain expert witnesses. On April 22, 2009, the Court denied plaintiffs’ motions to exclude the testimony of two of defendants’ expert witnesses. On September 30, 2010, the Court denied plaintiffs’ motion to exclude the testimony of another of defendants’ expert witnesses. The Court also granted defendants’ motion to exclude the testimony of one of plaintiffs’ expert witnesses, and granted in part and denied in part defendants’ motion to exclude the testimony of plaintiffs’ two remaining expert witnesses. The individual defendants and we deny any wrongdoing and are vigorously defending the action. At this time, we do not believe it is reasonably possible that we will incur additional material losses in excess of the amount we have already accrued for this matter. In the course of litigation, we periodically engage in discussions with plaintiffs’ counsel for possible resolution of this matter. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or a settlement for a significant amount, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment or settlement occurs.

Other Contingencies

We have issued or provided the following guarantees as of June 30, 2011:

·	$429 for letters of credit issued to i) guarantee our performance under certain services contracts; ii) support certain insurance programs; and iii) support our obligations related to the Brazil tax and labor contingencies.

·	$690 for outstanding surety bonds. Certain contracts, primarily those involving public sector customers, require us to provide a surety bond as a guarantee of our performance of contractual obligations.

In general, we would only be liable for the amount of these guarantees in the event of default in our performance of our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support.

We have service arrangements where we service third party student loans in the Federal Family Education Loan program (“FFEL”) on behalf of various financial institutions. We service these loans for investors under outsourcing arrangements and do not acquire any servicing rights that are transferable by us to a third party. At June 30, 2011, we serviced a FFEL portfolio of approximately 4.2 million loans with an outstanding principal balance of approximately $58.9 billion. Some servicing agreements contain provisions that, under certain circumstances, require us to purchase the loans from the investor if the loan guaranty has been permanently terminated as a result of a loan default caused by our servicing error. If defaults caused by us are cured during an initial period, any obligation we may have to purchase these loans expires. Loans that we purchase may be subsequently cured, the guaranty reinstated and the loans repackaged for sale to third parties. We evaluate our exposure under our purchase obligations on defaulted loans and establish a reserve for potential losses, or default liability reserve, through a charge to the provision for loss on defaulted loans purchased. The reserve is evaluated periodically and adjusted based upon management’s analysis of the historical performance of the defaulted loans. As of June 30, 2011, other current liabilities include reserves which we believe to be adequate.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 1,098	$ 1,211
Accounts receivable, net	2,921	2,826
Billed portion of finance receivables, net	182	198
Finance receivables, net	2,261	2,287
Inventories	1,129	991
Other current assets	1,104	1,126
Total current assets	8,695	8,639
Finance receivables due after one year, net	4,210	4,135
Equipment on operating leases, net	517	530
Land, buildings and equipment, net	1,687	1,671
Investments in affiliates, at equity	1,318	1,291
Intangible assets, net	3,245	3,371
Goodwill	8,830	8,649
Deferred tax assets, long-term	477	540
Other long-term assets	2,116	1,774
Total Assets	31,095	30,600
Liabilities and Equity
Short-term debt and current portion of long-term debt	2,197	1,370
Accounts payable	1,693	1,968
Accrued compensation and benefits costs	744	901
Unearned income	355	371
Other current liabilities	1,649	1,807
Total current liabilities	6,638	6,417
Long-term debt	7,113	7,237
Liability to subsidiary trust issuing preferred securities	0	650
Pension and other benefit liabilities	2,103	2,071
Post-retirement medical benefits	913	920
Other long-term liabilities	838	797
Total Liabilities	17,605	18,092
Series A Convertible Preferred Stock	349	349
Common stock	1,403	1,398
Additional paid-in capital	6,670	6,580
Retained earnings	6,482	6,016
Accumulated other comprehensive loss	(1,575)	(1,988)
Xerox shareholders' equity	12,980	12,006
Noncontrolling interests	161	153
Total Equity	13,141	12,159
Total Liabilities and Equity	$ 31,095	$ 30,600
Shares of common stock issued (in shares)	1,403,474,000	1,397,578,000
Shares of common stock outstanding (in shares)	1,403,474,000	1,397,578,000

Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 3 - Segment Reporting

Our reportable segments are aligned with how we manage the business and view the markets we serve. We report our financial performance based on the following two primary reportable segments – Technology and Services. Our Technology segment includes the sale and support of a broad range of document systems from entry level to high-end. Our Services segment operations involve delivery of a broad range of outsourcing services including document, business processing and IT outsourcing services.

Our Technology segment is centered on strategic product groups, which share common technology, manufacturing and product platforms. This segment includes the sale of document systems and supplies, technical services and product financing. Our products range from:

·	“Entry,” which includes A4 devices and desktop printers; to

·	“Mid-range,” which includes A3 devices that generally serves workgroup environments in mid to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100K and Light Production 91+ ppm priced at less than $100K; to

·	“High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises.

The Services segment is comprised of three outsourcing service offerings:

·	Document Outsourcing (which includes Managed Print Services)

·	Business Process Outsourcing

·	Information Technology Outsourcing

Document outsourcing services include service arrangements that allow customers to streamline, simplify and digitize their document-intensive business processes through automation and deployment of software application and tools and the management of their printing needs. Document outsourcing also includes revenues from our partner print services offerings. Business process outsourcing services includes service arrangements where we manage a customer’s business activity or process. Information technology outsourcing services include service arrangements where we manage a customer’s IT-related activities, such as application management and application development, data center operations or testing and quality assurance.

The segment classified as Other includes several units, none of which meet the thresholds for separate segment reporting. This group primarily includes Xerox Supplies Business Group (predominantly paper sales), Wide Format Systems, licensing revenues, GIS network integration solutions and electronic presentation systems and non-allocated Corporate items including non-financing interest, as well as other items included in Other expenses, net.

Operating segment revenues and profitability were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	Segment Revenue		Segment Profit (Loss)			Segment Revenue		Segment Profit (Loss)
2011
Technology	$	2,552	$	300		$	5,047	$	566
Services		2,672		322			5,256		588
Other		390		(73	)		776		(139	)
Total	$	5,614	$	549		$	11,079	$	1,015

2010
Technology	$	2,555	$	273		$	5,038	$	506
Services		2,529		319			4,372		522
Other		424		(93	)		819		(197	)
Total	$	5,508	$	499		$	10,229	$	831

	Three Months Ended June 30,						Six Months Ended June 30,
Reconciliation to Pre-tax Income	2011			2010			2011			2010
Segment Profit	$	549		$	499		$	1,015		$	831
Reconciling items:
Restructuring and asset impairment charges		9			(11	)		24			(206	)
Restructuring charges of Fuji Xerox		(4	)		(5	)		(15	)		(27	)
Acquisition-related costs		—			(15	)		—			(63	)
Amortization of intangible assets		(87	)		(85	)		(172	)		(142	)
Venezuelan devaluation costs		—			—			—			(21	)
ACS shareholders litigation settlement		—			(36	)		—			(36	)
Loss on early extinguishment of liability		(33	)		—			(33	)		—
Equity in net income of unconsolidated affiliates		(34	)		(28	)		(68	)		(26	)
Other		1			1			—			—
Pre-tax Income	$	401		$	320		$	751		$	310

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2011	Dec. 31, 2010
Inventories, net [Abstract]
Finished goods	$ 964	$ 858
Work-in-process	67	46
Raw materials	98	87
Total Inventories	$ 1,129	$ 991

Inventories (Tables)

6 Months Ended

Jun. 30, 2011

Inventories [Abstract]

Inventoires

The following is a summary of Inventories by major category:

	June 30, 2011		December 31, 2010
Finished goods	$	964	$	858
Work-in-process		67		46
Raw materials		98		87
Total Inventories	$	1,129	$	991

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2011

Earnings per Share [Abstract]

Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Basic Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	588		$	176
Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Basic Earnings per Share	$	0.22		$	0.16		$	0.42		$	0.14


Diluted Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Interest on Convertible Securities, net		—			—			1			—
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	589		$	176

Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Common shares issuable with respect to:
Stock options		11,698			14,393			12,485			12,439
Restricted stock and performance shares		22,000			18,984			20,903			16,756
Convertible securities		1,992			1,992			1,992			—
Adjusted Weighted Average Common Shares Outstanding		1,437,896			1,418,652			1,436,445			1,294,275
Diluted Earnings per Share	$	0.22		$	0.16		$	0.41		$	0.14

The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive:
Stock options		53,745			109,790			52,958			111,744
Restricted stock and performance shares		15,892			12,852			16,989			15,080
Convertible preferred stock		26,966			26,966			26,966			26,966
Convertible securities		—			—			—			1,992
		96,603			149,608			96,913			155,782

Dividends per common share	$	0.0425		$	0.0425		$	0.0850		$	0.0850

Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 13 - Employee Benefit Plans

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:

	Pension Benefits												Retiree Health
	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010			2011			2010			2011			2010
Components of Net Periodic Benefit Costs:
Service cost	$	46		$	42		$	94		$	88		$	2		$	2		$	4		$	4
Interest cost		121			118			239			238			12			14			24			28
Expected return on plan assets		(130	)		(116	)		(257	)		(236	)		—			—			—			—
Recognized net actuarial loss		19			19			36			35			—			—			—			—
Amortization of prior service credit		(6	)		(5	)		(12	)		(10	)		(10	)		(7	)		(20	)		(13	)
Recognized settlement loss		20			15			50			46			—			—			—			—
Net periodic benefit cost		70			73			150			161			4			9			8			19
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial loss (gain) (2)		(9	)		—			(9	)		—			—			—			—			—
Amortization of net prior service credit		6			5			12			10			10			7			20			13
Amortization of net actuarial losses		(39	)		(34	)		(86	)		(81	)		—			—			—			—
Total recognized in Other Comprehensive Income(1)		(42	)		(29	)		(83	)		(71	)		10			7			20			13
Total recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	28		$	44		$	67		$	90		$	14		$	16		$	28		$	32

________________

(1)	Amount represents the pre-tax effect included within Other comprehensive income. The amount, net of tax, is included within Note 14, Shareholders’ Equity.

(2)	Represents adjustments for the actual valuation results based on January 1, 2011 plan census data for the U.S.

The following table provides a summary of the components of the Net change in benefit plans included within Other comprehensive income as reported in Note 14, Shareholders’ Equity:

	Three Months Ended June 30,						Six Months Ended June 30,
(Expense)/benefit	2011			2010			2011			2010
Other changes in plan assets and benefit obligations	$	32		$	22		$	63		$	58
Income tax		(11	)		(6	)		(22	)		(20	)
Fuji Xerox changes in defined benefit plans(1)		(3	)		(3	)		(21	)		33
Currency, net		(4	)		11			(40	)		53
Other, net		—			(4	)		(2	)		(5	)
Net Change in Benefit Plans	$	14		$	20		$	(22	)	$	119

________________

(1)	Represents our share of Fuji Xerox’s changes.

Contributions: During the six months ended June 30, 2011, we made contributions of $123 and $39 to our defined benefit pension plans and our other post-retirement benefit plans, respectively. We presently anticipate contributing an additional $377 to our defined benefit pension plans and $48 to our other post-retirement benefit plans in 2011 for a total of $500 and $87, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Investment in Affiliates, at Equity (Tables)

6 Months Ended

Jun. 30, 2011

Investment in Affiliates, at Equity [Abstract]

Equity in net income (loss) of unconsolidated affiliates

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

Condensed financial data of Fuji Xerox

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.

Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2011

Fair Value of Financial Assets and Liabilities [Abstract]

Fair Value of Financial Assets and Liabilities

Note 12 - Fair Value of Financial Assets and Liabilities

The following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 - Significant Other Observable Inputs.

	June 30, 2011		December 31, 2010
Assets:
Foreign exchange contracts-forwards	$	33	$	45
Interest rate swaps		—		11
Deferred compensation investments in cash surrender life insurance		72		70
Deferred compensation investments in mutual funds		23		22
Total	$	128	$	148

Liabilities:
Foreign exchange contracts-forwards	$	27	$	19
Deferred compensation plan liabilities		100		98
Total	$	127	$	117

We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2.

Fair value for our deferred compensation plan investments in Company-owned life insurance is reflected at cash surrender value. Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for actively traded investments similar to those held by the plan. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections, based on quoted prices for similar assets in actively traded markets.

Summary of Other Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

The estimated fair values of our other financial assets and liabilities not measured at fair value on a recurring basis were as follows:

	As of June 30, 2011				As of December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	1,098	$	1,098	$	1,211	$	1,211
Accounts receivable, net		2,921		2,921		2,826		2,826
Short-term debt		2,197		2,238		1,370		1,396
Long-term debt		7,113		7,630		7,237		7,742
Liability to subsidiary trust issuing preferred securities		—		—		650		670

The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short- and Long-term debt, as well as our Liability to subsidiary trust issuing preferred securities, was estimated based on quoted market prices for publicly traded securities or on the current rates offered to us for debt of similar maturities. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
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-Name Accounting Standards Codification
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+ Details

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Operating segment revenues and profitability

Operating segment revenues and profitability were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	Segment Revenue		Segment Profit (Loss)			Segment Revenue		Segment Profit (Loss)
2011
Technology	$	2,552	$	300		$	5,047	$	566
Services		2,672		322			5,256		588
Other		390		(73	)		776		(139	)
Total	$	5,614	$	549		$	11,079	$	1,015

2010
Technology	$	2,555	$	273		$	5,038	$	506
Services		2,529		319			4,372		522
Other		424		(93	)		819		(197	)
Total	$	5,508	$	499		$	10,229	$	831

Reconciliation to pre-tax income (loss)

Three Months Ended June 30,						Six Months Ended June 30,
Reconciliation to Pre-tax Income	2011			2010			2011			2010
Segment Profit	$	549		$	499		$	1,015		$	831
Reconciling items:
Restructuring and asset impairment charges		9			(11	)		24			(206	)
Restructuring charges of Fuji Xerox		(4	)		(5	)		(15	)		(27	)
Acquisition-related costs		—			(15	)		—			(63	)
Amortization of intangible assets		(87	)		(85	)		(172	)		(142	)
Venezuelan devaluation costs		—			—			—			(21	)
ACS shareholders litigation settlement		—			(36	)		—			(36	)
Loss on early extinguishment of liability		(33	)		—			(33	)		—
Equity in net income of unconsolidated affiliates		(34	)		(28	)		(68	)		(26	)
Other		1			1			—			—
Pre-tax Income	$	401		$	320		$	751		$	310

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Cash Flows from Operating Activities:
Net income (loss)	$ 327	$ 236	$ 616	$ 202
Adjustments required to reconcile net income (loss) to cash flows from operating activities:
Depreciation and amortization	298	279	589	520
Provision for receivables	29	43	54	93
Provision for inventory	6	8	19	17
Net (gain) loss on sales of businesses and assets	(7)	1	(8)	(1)
Undistributed equity in net income of unconsolidated affiliates	(7)	(12)	(40)	(9)
Stock-based compensation	31	30	63	57
Provision for litigation, net	0	36	0	36
Payments for litigation, net	0	(36)	0	(36)
Restructuring and asset impairment charges	(9)	11	(24)	206
Payments for restructurings	(63)	(55)	(120)	(94)
Contributions to pension benefit plans	(79)	(30)	(123)	(63)
(Increase) decrease in accounts receivable and billed portion of finance receivables	(15)	62	(286)	(135)
Collections of deferred proceeds from sales of receivables	95	42	182	42
Increase in inventories	(37)	(61)	(137)	(198)
Increase in equipment on operating leases	(68)	(64)	(129)	(122)
Decrease in finance receivables	65	70	160	201
(Increase) decrease in other current and long-term assets	(44)	(8)	(123)	13
(Decrease) increase in accounts payable and accrued compensation	(145)	18	(378)	187
Decrease in other current and long-term liabilities	(89)	(12)	(175)	(66)
Net change in income tax assets and liabilities	47	110	168	107
Net change in derivative assets and liabilities	1	(22)	24	(4)
Other operating, net	11	32	(15)	100
Net cash provided by operating activities	347	678	317	1,053
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment	(94)	(83)	(165)	(134)
Proceeds from sales of land, buildings and equipment	2	6	4	25
Cost of additions to internal use software	(41)	(44)	(81)	(69)
Acquisitions, net of cash acquired	(94)	(4)	(137)	(1,528)
Net change in escrow and other restricted investments	(7)	(9)	(8)	6
Other investing, net	19	4	19	4
Net cash used in investing activities	(215)	(130)	(368)	(1,696)
Cash Flows from Financing Activities:
Net proceeds (payments) on debt	690	(395)	703	(2,038)
Payment of liability to subsidiary trust issuing preferred securities	(670)	0	(670)	0
Common stock dividends	(59)	(60)	(119)	(97)
Preferred stock dividends	(6)	(3)	(12)	(3)
Proceeds from issuances of common stock	12	2	31	117
Excess tax benefits from stock-based compensation	2	6	4	10
Repurchases related to stock-based compensation	(3)	(2)	(6)	(2)
Other financing	(5)	(5)	(12)	(9)
Net cash used in financing activities	(39)	(457)	(81)	(2,022)
Effect of exchange rate changes on cash and cash equivalents	5	(19)	19	(52)
Increase (decrease) in cash and cash equivalents	98	72	(113)	(2,717)
Cash and cash equivalents at beginning of period	1,000	1,010	1,211	3,799
Cash and Cash Equivalents at End of Period	$ 1,098	$ 1,082	$ 1,098	$ 1,082

Earnings per Share

6 Months Ended

Jun. 30, 2011

Earnings per Share [Abstract]

Earnings per Share

Note 15 - Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Basic Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	588		$	176
Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Basic Earnings per Share	$	0.22		$	0.16		$	0.42		$	0.14


Diluted Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Interest on Convertible Securities, net		—			—			1			—
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	589		$	176

Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Common shares issuable with respect to:
Stock options		11,698			14,393			12,485			12,439
Restricted stock and performance shares		22,000			18,984			20,903			16,756
Convertible securities		1,992			1,992			1,992			—
Adjusted Weighted Average Common Shares Outstanding		1,437,896			1,418,652			1,436,445			1,294,275
Diluted Earnings per Share	$	0.22		$	0.16		$	0.41		$	0.14

The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive:
Stock options		53,745			109,790			52,958			111,744
Restricted stock and performance shares		15,892			12,852			16,989			15,080
Convertible preferred stock		26,966			26,966			26,966			26,966
Convertible securities		—			—			—			1,992
		96,603			149,608			96,913			155,782

Dividends per common share	$	0.0425		$	0.0425		$	0.0850		$	0.0850

Interest Expense and Income (Tables)

6 Months Ended

Jun. 30, 2011

Interest Expense And Income Disclosure [Abstract]

Interest Expense and Interest Income

Interest expense and interest income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Interest expense(1)	$	124	$	153	$	251	$	306
Interest income(2)		168		168		337		346

(1)	Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

(2)	Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

Receivables, Net

6 Months Ended

Jun. 30, 2011

Receivables, Net [Abstract]

Receivables, Net

Note 5 - Receivables, Net

Accounts Receivable Sales Arrangements

We have facilities in the U.S., Canada and several countries in Europe that enable us to sell to third-parties, on an on-going basis, certain accounts receivable without recourse. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days. The agreements involve the sale of entire groups of accounts receivable for cash. In certain instances a portion of the sales proceeds are held back and deferred until collection of the related receivables by the purchaser. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Condensed Consolidated Statements of Cash Flows, because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to its short-term nature. These receivables are included in the caption “Other current assets” in the accompanying Condensed Consolidated Balance Sheets and were $106 and $90 at June 30, 2011 and December 31, 2010, respectively. Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material. Accounts receivables sales were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Accounts receivable sales	$	819	$	535	$	1,549	$	1,012
Deferred proceeds		103		73		197		115
Fees associated with sales		5		3		9		7
Estimated increase (decrease) to operating cash flows(1)		29		86		5		(68	)

___________

(1)	Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency.

Finance Receivables – Allowance for Credit Losses and Credit Quality

Finance receivables include sales-type leases, direct financing leases and installment loans. Our finance receivable portfolios are primarily in the U.S., Canada and Europe. We generally establish customer credit limits and estimate the allowance for credit losses on a country or geographic basis. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented.

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:

	United States			Canada			Europe			Other(3)		Total
Allowance for Credit Losses:
Balance December 31, 2010	$	91		$	37		$	81		$	3	$	212
Provision		7			4			11			—		22
Charge-offs		(10	)		(5	)		(8	)		—		(23	)
Recoveries and other(1)		(1	)		2			3			—		4
Balance March 31, 2011		87			38			87			3		215
Provision		1			3			14			—		18
Charge-offs		(6	)		(5	)		(11	)		—		(22	)
Recoveries and other(1)		(1	)		—			(1	)		—		(2	)
Balance June 30, 2011	$	81		$	36		$	89		$	3	$	209

Finance Receivables as of June 30, 2011 collectively evaluated for impairment(2)	$	2,979		$	867		$	2,919		$	88	$	6,853

Allowance for Credit Losses:
Balance December 31, 2009	$	99		$	33		$	87		$	3	$	222
Provision		10			6			17			—		33
Charge-offs		(22	)		(6	)		(11	)		—		(39	)
Recoveries and other(1)		1			2			(5	)		—		(2	)
Balance March 31, 2010		88			35			88			3		214
Provision		15			6			12			—		33
Charge-offs		(17	)		(8	)		(19	)		—		(44	)
Recoveries and other(1)		—			—			(6	)		—		(6	)
Balance June 30, 2010	$	86		$	33		$	75		$	3	$	197

Finance Receivables as of June 30, 2010 collectively evaluated for impairment(2)	$	3,248		$	835		$	2,447		$	45	$	6,575

(1)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(2)	Total Finance Receivables exclude residual values of $9 and $14, and the allowance for credit losses of $209 and $197 at June 30, 2011 and 2010, respectively.

(3)	Includes developing market countries and smaller units.

We evaluate our customers based on the following credit quality indicators:

Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%.

Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category are generally in the range of 2% to 4%.

Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees and etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation when the lease was originated. Accordingly there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are around 10%.

Credit quality indicators are updated at least annually and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:

	June 30, 2011
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	348	$	381	$	171	$	900
Government and Education		791		21		6		818
Graphic Arts		119		217		147		483
Industrial		199		80		34		313
Healthcare		130		45		25		200
Other		98		104		63		265
Total United States		1,685		848		446		2,979
Finance and Other Services		156		125		51		332
Government and Education		133		10		5		148
Graphic Arts		38		43		41		122
Industrial		60		43		34		137
Other		73		42		13		128
Total Canada		460		263		144		867
France		238		428		81		747
U.K./Ireland		189		193		54		436
Central(1)		257		671		52		980
Southern(2)		217		387		35		639
Nordics(3)		53		62		2		117
Total Europe		954		1,741		224		2,919
Other		60		17		11		88
Total	$	3,159	$	2,869	$	825	$	6,853

	December 31, 2010
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	360	$	401	$	190	$	951
Government and Education		849		21		7		877
Graphic Arts		147		217		156		520
Industrial		206		91		38		335
Healthcare		134		48		32		214
Other		102		109		69		280
Total United States		1,798		887		492		3,177
Finance and Other Services		150		127		56		333
Government and Education		127		12		3		142
Graphic Arts		32		35		48		115
Industrial		57		47		30		134
Other		88		47		13		148
Total Canada		454		268		150		872
France		219		374		82		675
U.K./Ireland		206		164		51		421
Central(1)		297		551		65		913
Southern(2)		263		237		81		581
Nordics(3)		50		63		3		116
Total Europe		1,035		1,389		282		2,706
Other		33		33		—		66
Total	$	3,320	$	2,577	$	924	$	6,821

(1)	Switzerland, Germany, Austria, Belgium and Holland.

(2)	Italy, Greece, Spain and Portugal.

(3)	Sweden, Norway, Denmark and Finland.

The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows:

	June 30, 2011
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	19	$	3	$	1	$	23	$	877	$	900	$	22
Government and Education		21		3		3		27		791		818		40
Graphic Arts		19		2		1		22		461		483		12
Industrial		9		2		1		12		301		313		11
Healthcare		6		1		1		8		192		200		8
Other		7		1		—		8		257		265		7
Total United States		81		12		7		100		2,879		2,979		100
Canada		5		3		1		9		858		867		25
France		1		2		1		4		743		747		6
U.K./Ireland		7		1		1		9		427		436		6
Central(1)		10		4		3		17		963		980		30
Southern(2)		31		9		14		54		585		639		74
Nordics(3)		2		-		-		2		115		117		-
Total Europe		51		16		19		86		2,833		2,919		116
Other		2		1		-		3		85		88		-
Total	$	139	$	32	$	27	$	198	$	6,655	$	6,853	$	241

	December 31, 2010
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	23	$	5	$	2	$	30	$	921	$	951	$	23
Government and Education		26		6		3		35		842		877		40
Graphic Arts		21		3		1		25		495		520		16
Industrial		11		2		1		14		321		335		10
Healthcare		6		2		1		9		205		214		9
Other		8		2		—		10		270		280		8
Total United States		95		20		8		123		3,054		3,177		106
Canada		3		3		1		7		865		872		28
France		1		1		—		2		673		675		5
U.K./Ireland		4		1		1		6		415		421		7
Central(1)		9		2		4		15		898		913		39
Southern(2)		32		10		15		57		524		581		99
Nordics(3)		1		—		—		1		115		116		2
Total Europe		47		14		20		81		2,625		2,706		152
Other		2		—		—		2		64		66		—
Total	$	147	$	37	$	29	$	213	$	6,608	$	6,821	$	286

(1)	Switzerland, Germany, Austria, Belgium and Holland.

(2)	Italy, Greece, Spain and Portugal.

(3)	Sweden, Norway, Denmark and Finland.

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

+ Details

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.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References + Details

Employee Benefit Plans (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:

Total Recognized in Other Comprehensive Income

$ 32

$ 22

$ 63

$ 58

Components of the Net change in benefit plans included within Other comprehensive income [Abstract]

Other changes in plan assets and benefit obligations

Income tax

(11)

(6)

(22)

(20)

Fuji Xerox changes in defined benefit plans

^[1]

(3)

(21)

Currency, net

(4)

(40)

Other, net

(4)

(2)

(5)

Net Change in Benefit Plans

(22)

119

Retiree Health [Member]

Components of Net Periodic Benefit Costs:

Service cost

Interest cost

Amortization of prior service credit

(10)

(7)

(20)

(13)

Total net periodic benefit cost

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:

Amortization of net prior service credit

Total Recognized in Other Comprehensive Income

^[2]

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

Components of the Net change in benefit plans included within Other comprehensive income [Abstract]

Other changes in plan assets and benefit obligations

^[2]

Contributions [Abstract]

Contributions by employer

Anticipated additional contributions

Anticipated total contributions

Pension Benefits [Member]

Components of Net Periodic Benefit Costs:

Service cost

Interest cost

121

118

239

238

Expected return on plan assets

(130)

(116)

(257)

(236)

Recognized net actuarial loss

Amortization of prior service credit

(6)

(5)

(12)

(10)

Recognized settlement loss

Total net periodic benefit cost

150

161

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:

Net actuarial loss (gain)

^[3]

(9)

Amortization of net prior service credit

Amortization of net actuarial losses

(39)

(34)

(86)

(81)

Total Recognized in Other Comprehensive Income

^[2]

(42)

(29)

(83)

(71)

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

Components of the Net change in benefit plans included within Other comprehensive income [Abstract]

Other changes in plan assets and benefit obligations

^[2]

(42)

$ (29)

(83)

$ (71)

Contributions [Abstract]

Contributions by employer

123

Anticipated additional contributions

377

Anticipated total contributions

$ 500

[1]	(1) Represents our share of Fuji Xerox's changes.
[2]	(1) Amount represents the pre-tax effect included within Other comprehensive income. The amount, net of tax, is included within Note 14, Shareholders' Equity.
[3]	(2) Represents adjustments for the actual valuation results based on January 1, 2011 plan census data for the U.S.

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Financial Instruments [Abstract]

Forward Foreign Exchange Contracts

The following is a summary of the primary hedging positions and corresponding fair values as of June 30, 2011:

Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)(1)
Euro/U.K. Pound Sterling	$	811	$	12
U.S. Dollar/Euro		620		(10	)
Japanese Yen/U.S. Dollar		388		6
Japanese Yen/Euro		323		(3	)
Swiss Franc/Euro		228		6
U.K. Pound Sterling/U.S. Dollar		214		—
Canadian Dollar/Euro		155		—
Euro/U.S. Dollar		138		2
U.K. Pound Sterling/Euro		125		(4	)
Swedish Kronor/Euro		98		—
U.K. Pound Sterling/Swiss Franc		79		(3	)
Mexican Peso/U.S. Dollar		67		2
Danish Krone/Euro		61		—
Indian Rupee/U.S. Dollar		58		1
Norwegian Kroner/Euro		52		—
All Other		258		(3	)
Total Foreign Exchange Hedging	$	3,675	$	6

___________

(1)	Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at June 30, 2011.

Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:

Designation of Derivatives	Balance Sheet Location	June 30, 2011			December 31, 2010

Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	10		$	19
	Other current liabilities		(10	)		(1	)
Interest rate swaps	Other long-term assets		—			11
	Net Designated Asset	$	—		$	29

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	23		$	26
	Other current liabilities		(17	)		(18	)
	Net Undesignated Asset	$	6		$	8

Summary of Derivatives	Total Derivative Assets	$	33		$	56
	Total Derivative Liabilities		(27	)		(19	)
	Net Derivative Asset	$	6		$	37

Summary of Fair Value Hedges Gains (Losses)

Derivative Gain (Loss) Recognized in Income Three Months Ended June 30,					Hedged Item Gain (Loss) Recognized in Income Three Months Ended June 30,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2011		2010		2011			2010
Interest rate contracts	Interest expense	$	17	$	55	$	(17	)	$	(55	)

		Derivative Gain (Loss) Recognized in Income Six Months Ended June 30,				Hedged Item Gain (Loss) Recognized in Income Six Months Ended June 30,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2011		2010		2011			2010
Interest rate contracts	Interest expense	$	16	$	77	$	(16	)	$	(77	)

Summary of Cash Flow Hedges Gains (Losses)

	Derivative Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended June 30,					Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Three Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2011		2010		Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	2011			2010
Foreign exchange contracts – forwards	$	3	$	16	Cost of sales	$	(7	)	$	7

	Derivative Gain (Loss) Recognized in OCI (Effective Portion) Six Months Ended June 30,						Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2011			2010		Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	2011			2010
Foreign exchange contracts – forwards	$	(24	)		25	Cost of sales	$	(4	)		11

Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses)

The following table provides a summary of gains (losses) on non-designated derivative instruments:

		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain (Loss)	2011		2010		2011			2010
Foreign exchange contracts – forwards	Other expense - Currency gains (losses), net	$	15	$	67	$	(16	)	$	89

Restructuring Programs (Tables)

6 Months Ended

Jun. 30, 2011

Restructuring Programs [Abstract]

Restructuring Program Activity

Information related to restructuring program activity during the six months ended June 30, 2011 is outlined below:

	Severance and Related Costs			Lease Cancellation and Other Costs			Total
Balance December 31, 2010	$	298		$	25		$	323
Restructuring provision		23			1			24
Reversals of prior accruals		(43	)		(5	)		(48	)
Net current period charges(1)		(20	)		(4	)		(24	)
Charges against reserve and currency		(113	)		(7	)		(120	)
Balance June 30, 2011	$	165		$	14		$	179

(1)	Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown.

Reconciliation to the Condensed Consolidated Statements of Cash Flows

Reconciliation to the Condensed Consolidated Statements of Cash Flows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Charges against reserve	$	(67	)	$	(60	)	$	(120	)	$	(83	)
Asset impairment		—			—			—			4
Effects of foreign currency and other non-cash items		4			5			—			(15	)
Cash Payments for Restructurings	$	(63	)	$	(55	)	$	(120	)	$	(94	)

Total Costs incurred with Restructuring programs, by segment

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Technology	$	(7	)	$	7	$	(19	)	$	136
Services		1			2		—			45
Other		(3	)		2		(5	)		25
Total Net Restructuring Charges	$	(9	)	$	11	$	(24	)	$	206

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2011
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 2 - Recent Accounting Pronouncements Presentation of Comprehensive Income: In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220)—Presentation of Comprehensive Income, which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. The items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income were not changed. Additionally, no changes were made to the calculation and presentation of earnings per share. ASU 2011-05 is effective for our fiscal year beginning January 1, 2012 and must be applied retrospectively. We expect to present comprehensive income in two separate but consecutive statements. Other than the change in presentation, we have determined these changes will not have an impact on the Consolidated Financial Statements. Fair Value Measurement and Disclosure Requirements: In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (Topic 820)—Fair Value Measurement, to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements, particularly for level 3 fair value measurements. ASU 2011-04 is effective for our fiscal year beginning January 1, 2012 and must be applied prospectively. We are currently evaluating the impact of the adoption of ASU 2011-04 on our consolidated financial statements. Receivables: In April 2011, the FASB issued ASU 2011-02 to provide additional guidance on a creditor’s determination of whether a restructuring is a troubled debt restructuring. The additional guidance was provided to assist a creditor in determining whether it has granted a concession and whether a debtor is experiencing financial difficulties for purposes of determining if a restructuring constitutes a troubled debt restructuring. The update is effective for our third quarter beginning July 1, 2011 and is not expected to have a material effect on our financial condition, results of operations or disclosures.

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 154
-Paragraph 2, 17, 18
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 28
-Paragraph 23, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

+ Details

Restructuring Programs (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Restructuring reserve [Roll Forward]

Balance at beginning of period

$ 323

Restructuring provision

Reversals of prior accruals

(48)

Net current period charges

$ (9)

$ 11

(24)

$ 206

Charges against reserve and currency

(67)

(60)

(120)

(83)

Balance at end of period

179

Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]

Charges against reserve

(67)

(60)

(120)

(83)

Asset impairment

Effects of foreign currency and other non-cash items

(15)

Cash Payments for Restructurings

(63)

(55)

(120)

(94)

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

(9)

(24)

206

Segment Reporting Information Technology [Member]

Restructuring reserve [Roll Forward]

Net current period charges

(7)

(19)

136

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

(7)

(19)

136

Segment Reporting Information Services [Member]

Restructuring reserve [Roll Forward]

Net current period charges

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

Segment Reporting Information Other [Member]

Restructuring reserve [Roll Forward]

Net current period charges

(3)

(5)

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

(3)

$ 2

(5)

$ 25

Severance and Related Costs [Member]

Restructuring reserve [Roll Forward]

Balance at beginning of period

298

Restructuring provision

Reversals of prior accruals

(43)

Net current period charges

^[1]

(20)

Charges against reserve and currency

(113)

Balance at end of period

165

Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]

Charges against reserve

(113)

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

^[1]

(20)

Lease Cancellation and Other Costs [Member]

Restructuring reserve [Roll Forward]

Balance at beginning of period

Restructuring provision

Reversals of prior accruals

(5)

Net current period charges

^[1]

(4)

Charges against reserve and currency

(7)

Balance at end of period

$ 14

Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]

Charges against reserve

(7)

Restructuring Cost and Reserve [Line Items]

Total Net Restructuring Charges

^[1]

$ (4)

[1]	(1) Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown.

Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

	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	)

_______________

(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	)

Interest Expense and Income (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Interest Expense And Income Disclosure [Abstract]

Interest expense(1)

^[1]

$ 124

$ 153

$ 251

$ 306

Interest income(2)

^[2]

$ 168

$ 337

$ 346

[1]	(1) Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.
[2]	(2) Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

Acquisitions (Details) - USD ($)	3 Months Ended		6 Months Ended
Acquisitions (Details) - USD ($)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	May 31, 2011	Apr. 30, 2011	Feb. 28, 2011	Feb. 05, 2010
As Reported [Abstract]
Revenue	$ 5,614,000,000	$ 5,508,000,000	$ 11,079,000,000	$ 10,229,000,000
Net (loss) - Xerox	$ 319,000,000	$ 227,000,000	$ 600,000,000	$ 185,000,000
Basic earnings (loss) per-share (in dollars per share)	$ 0.22	$ 0.16	$ 0.42	$ 0.14
Diluted earnings (loss) per-share (in dollars per share)	$ 0.22	$ 0.16	$ 0.41	$ 0.14
Concept Group [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Date of acquisition			February 2011
Cash acquired, net of cash acquired							$ 43,000,000
Unamic/HCN [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Date of acquisition			April 2011
Cash acquired, net of cash acquired						$ 55,000,000
ACS [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Date of acquisition				February 2010
Aggregate acquisition cost								$ 6,500,000,000
Debt assumed and repaid								1,700,000,000
Debt assumed and not repaid								$ 600,000,000
Pro-forma Financial Data [Abstract]
Revenue				$ 10,848,000,000
Net income (loss) - Xerox				$ 171,000,000
Basic earnings per-share (in dollars per share)				$ 0.12
Diluted earnings per-share (in dollars per share)				$ 0.11
As Reported [Abstract]
Revenue				$ 10,229,000,000
Net (loss) - Xerox				$ 185,000,000
Basic earnings (loss) per-share (in dollars per share)				$ 0.14
Diluted earnings (loss) per-share (in dollars per share)				$ 0.14
NewField Information Technology, LTD [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Date of acquisition			May 2011
Cash acquired, net of cash acquired					$ 17,000,000
GIS Acquisitions [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Aggregate acquisition cost	$ 14,000,000		$ 14,000,000