**Exhibit 12(a)**

**XEROX CREDITCORPORATION****COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES** (In Millions)

 

|                                   |   | **Three Months Ended****March 31,** |   | **Year Ended December 31,** |   |
|----------------------------------------|--------|-------------------------------------|--------|-----------------------------|--------|
|                                   |   |                                     |   |                             |   |
|                                   |   | **2003**                            |   | **2002**                    |   | **2002** |   | **2001** |   | **2000*** |   | **1999** |   | **1998** |   |
|                                   |   |                                     |   |                             |   |  |   |  |   |  |   |  |   |  |   |
| Income before income taxes             |   | $                                   | 30     |                        | $      | 49 |   | $ | 142 |   | $ | 91 |   | $ | 137 |   | $ | 180 |   | $ | 137 |   |
|                                   |   |                                     |        |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Fixed Charges:                         |   |                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                       |   |                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Xerox debt                             |   |                                | — |                        |   | — |   |   | — |   |   | — |   |   | 13 |   |   | 32 |   |   | 23 |   |
| Other debt                             |   |                                | 15     |                        |   | 34 |   |   | 127 |   |   | 298 |   |   | 279 |   |   | 211 |   |   | 217 |   |
|                                   |   |                                     |        |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total fixed charges                    |   |                                | 15     |                        |   | 34 |   |   | 127 |   |   | 298 |   |   | 292 |   |   | 243 |   |   | 240 |   |
|                                   |   |                                     |        |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Earnings available for fixed charges   |   | $                                   | 45     |                        | $      | 83 |   | $ | 269 |   | $ | 389 |   | $ | 429 |   | $ | 423 |   | $ | 377 |   |
|                                   |   |                                     |        |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Ratio of earnings to fixed charges (1) |   |                                | 3.00   |                        |   | 2.44 |   |   | 2.12 |   |   | 1.31 |   |   | 1.47 |   |   | 1.74 |   |   | 1.57 |   |

**______________**

(1)

The ratio of earnings to fixed charges has been computed by dividing total earningsavailable for fixed charges by total fixed charges. 

*

As restated. Refer toNote 2 to the consolidated financial statements incorporated by reference in our 2001 Annual Report on Form 10-K.

 

32