STATEMENT RE 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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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Income before income taxes .................. $ 216,853 $ 200,110 $ 414,850 $ 383,745
Add:
Interest expense ........................ 54,776 52,692 102,675 104,597
Portion of rents
representative of the
interest factor ...................... 12,373 11,385 22,680 22,514
Amortization of capitalized
interest ............................. 243 244 486 487
Minority interest in the
income of subsidiary
with fixed charges ................... 3,070 3,065 6,129 5,031
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Income as adjusted .......................... $ 287,315 $ 267,496 $ 546,820 $ 516,374
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Fixed charges:
Interest expense ........................ $ 54,776 $ 52,692 $ 102,675 $ 104,597
Portion of rents
representative of the
interest factor ...................... 12,373 11,385 22,680 22,514
Minority interest, excluding
taxes, in the income of
subsidiary with fixed charges ........ 4,687 4,715 9,357 7,800
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$ 71,836 $ 68,792 $ 134,712 $ 134,911
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Ratio of earnings to
fixed charges ........................... 4.00 3.89 4.06 3.83
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Ratio of earnings to fixed
charges excluding minority
interest................................. 4.23 4.13 4.31 4.02
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(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.