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Excess-3 binary coded decimal (XS-3) is a numeral system used in some old computers. In XS-3, numbers are represented as decimal digits, and each digit is represented by four bits as the BCD value plus 3 (the "excess" amount):
To encode a number such as 127, then, one simply encodes each of the decimal digits as above, giving (0100, 0101, 1010).
The primary advantage of XS-3 coding over BCD coding is that a decimal number can be nine's complemented (for subtraction) as easily as a binary number can be one's complemented, just invert all bits.