COMPUTATION OF RATIOS
Published on
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Exhibit (12)
Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
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(Dollars in thousands) Three Months Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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<S> <C> <C> <C> <C>
Income before income taxes.............. $ 172,968 $ 208,314 $ 339,243 $ 396,850
Add:
Interest expense.................... 40,714 48,754 84,513 97,145
Portion of rents
representative of the
interest factor.................. 11,024 10,251 22,689 20,530
Amortization of capitalized
interest......................... 368 368 736 611
Minority interest in the
income of subsidiary
with fixed charges............... 1,001 1,391 2,098 2,629
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Income as adjusted...................... $ 226,075 $ 269,078 $ 449,279 $ 517,765
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Fixed charges:
Interest expense.................... $ 40,714 $ 48,754 $ 84,513 $ 97,145
Portion of rents
representative of the
interest factor.................. 11,024 10,251 22,689 20,530
Minority interest, excluding
taxes, in the income of
subsidiary with fixed charges.... 1,456 2,025 3,057 3,827
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Total fixed charges.............. $ 53,194 $ 61,030 $ 110,259 $ 121,502
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Ratio of earnings to
fixed charges....................... 4.25 4.41 4.07 4.26
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<FN>
(1) The computation of the ratio of earnings to fixed charges has been
computed by dividing income before income taxes as adjusted by fixed
charges. Included in fixed charges is one-third of rental expense as
the representative portion of interest.
</FN>
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