STATEMENTS RE COMPUTATION OF RATIOS
Published on
Pitney Bowes Inc. - Form 10-Q
Nine Months Ended September 30, 1997
Page 19 of 20
Exhibit (iii)
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Pitney Bowes Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred
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Stock Dividends (1)
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(Dollars in thousands) Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
Income before income taxes ......... $195,170 $176,450 $578,915 $522,085
Add:
Interest expense ................. 53,228 52,212 157,825 151,095
Portion of rents
representative of the
interest factor ................ 11,483 11,469 33,997 33,780
Amortization of capitalized
interest ....................... 243 228 730 685
Minority interest in the
income of subsidiary
with fixed charges ............. 3,153 2,011 8,184 6,121
-------- -------- -------- --------
Income as adjusted ................. $263,277 $242,370 $779,651 $713,766
-------- -------- -------- --------
Fixed charges:
Interest expense ................. 53,228 52,212 157,825 151,095
Capitalized interest ............. -- -- -- 1,201
Portion of rents
representative of the
interest factor ................ 11,483 11,469 33,997 33,780
Minority interest, excluding
taxes, in the income of
subsidiary with fixed
charges ........................ 4,888 3,118 12,688 9,490
-------- -------- -------- --------
$ 69,599 $ 66,799 $204,510 $195,566
======== ======== ======== ========
Ratio of earnings to combined
fixed charges and preferred
stock dividends .................. 3.78 3.63 3.81 3.65
======== ======== ======== ========
Ratio of earnings to fixed
charges excluding minority
interest ......................... 4.07 3.81 4.06 3.84
======== ======== ======== ========
(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.