EX-12 2 0002.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit (12) Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) ----------------------------------------------------- (Dollars in thousands)
Three Months Ended Six Months Ended June 30, June 30, --------------------------- --------------------------- 2000 1999(2) 2000 1999(2) ------------ ------------ ------------ ----------- Income from continuing operations before income taxes........................... $ 245,970 $ 233,870 $ 470,507 $ 443,110 Add: Interest expense............................. 55,415 48,108 104,408 94,167 Portion of rents representative of the interest factor........................... 10,714 10,412 21,517 21,194 Amortization of capitalized interest.................................. 243 243 486 486 Minority interest in the income of subsidiary with fixed charges........................ 3,543 2,792 6,825 5,665 ------------ ------------ ------------ ----------- Income as adjusted.............................. $ 315,885 $ 295,425 $ 603,743 $ 564,622 ============ ============ ============ =========== Fixed charges: Interest expense............................. $ 55,415 $ 48,108 $ 104,408 $ 94,167 Capitalized interest......................... 974 - 1,513 - Portion of rents representative of the interest factor........................... 10,714 10,412 21,517 21,194 Minority interest, excluding taxes, in the income of subsidiary with fixed charges............. 5,252 4,149 10,114 8,481 ------------ ------------ ------------ ----------- Total fixed charges...................... $ 72,355 $ 62,669 $ 137,552 $ 123,842 ============ ============ ============ =========== Ratio of earnings to fixed charges................................ 4.37 4.71 4.39 4.56 ============ ============ ============ =========== Ratio of earnings to fixed charges excluding minority interest..................................... 4.65 5.00 4.68 4.85 ============ ============ ============ =========== (1) The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes as adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest. (2) Interest expense and the portion of rents representative of the interest factor of the discontinued operations of AMIC have been excluded from fixed charges in the computation for the three and six months ended June 30, 1999. Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 4.61 and 4.45 for the three and six months ended June 30, 1999, respectively. The ratio of earnings to fixed charges excluding minority interest would be 4.88 and 4.72 for the three and six months ended June 30, 1999, respectively.