<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM XEROX
CORPORATION'S DECEMBER 31, 1999 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               DEC-31-1999
<CASH>                                             126
<SECURITIES>                                         0
<RECEIVABLES>                                   16,500
<ALLOWANCES>                                       560
<INVENTORY>                                      2,961
<CURRENT-ASSETS>                                11,985
<PP&E>                                           5,386
<DEPRECIATION>                                   2,930
<TOTAL-ASSETS>                                  28,814
<CURRENT-LIABILITIES>                            7,950
<BONDS>                                         15,001
<PREFERRED-MANDATORY>                              638
<PREFERRED>                                        669
<COMMON>                                           667
<OTHER-SE>                                       4,244
<TOTAL-LIABILITY-AND-EQUITY>                    28,814
<SALES>                                         10,346
<TOTAL-REVENUES>                                19,228
<CGS>                                            5,744
<TOTAL-COSTS>                                   10,772
<OTHER-EXPENSES>                                 6,420
<LOSS-PROVISION>                                   359
<INTEREST-EXPENSE>                                 803
<INCOME-PRETAX>                                  2,036
<INCOME-TAX>                                       631
<INCOME-CONTINUING>                              1,424
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,424
<EPS-BASIC>                                       2.09
<EPS-DILUTED>                                     1.96