COMPUTATION OF EARNINGS TO FIXED CHARGES
Published on
Pitney Bowes Inc. - Form 10-Q
Six Months Ended June 30, 1997
Page 18 of 19
Exhibit (ii)
Pitney Bowes Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends (1)
<TABLE>
<CAPTION>
(Dollars in thousands) Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Income before income taxes ..................... $200,110 $182,196 $383,745 $345,635
Add:
Interest expense .......................... 52,692 48,971 104,597 98,883
Portion of rents representative of the
interest factor ....................... 11,385 11,250 22,514 22,311
Amortization of capitalized
interest .............................. 244 229 487 457
Minority interest in the income of
subsidiary with fixed charges ......... 3,065 1,991 5,031 4,110
-------- -------- -------- --------
Income as adjusted ............................. $267,496 $244,637 $516,374 $471,396
======== ======== ======== ========
Fixed charges:
Interest expense .......................... $ 52,692 $ 48,971 $104,597 $ 98,883
Capitalized interest ...................... -- 599 -- 1,201
Portion of rents
representative of the
interest factor ....................... 11,385 11,250 22,514 22,311
Minority interest excluding
taxes, in the income of
subsidiary with fixed charges ......... 4,715 3,087 7,800 6,372
-------- -------- -------- --------
$ 68,792 $ 63,907 $134,911 $128,767
======== ======== ======== ========
Ratio of earnings to combined
fixed charges and preferred
stock dividends ........................... 3.89 3.83 3.83 3.66
======== ======== ======== ========
Ratio of earnings to fixed
charges excluding minority
interest .................................. 4.13 3.99 4.02 3.82
======== ======== ======== ========
<FN>
(1) The computation of the ratio of earnings to combined fixed charges and
preferred stock dividends has been computed by dividing income as adjusted by
fixed charges and preferred stock dividends. Included in fixed charges is
one-third of rental expense as the representative portion of interest.
</FN>
</TABLE>