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 Nine Months Ended September 30, September 30, --------------------------- --------------------------- 2000 1999(2) 2000 1999(2) ------------ ------------ ------------ ----------- Income from continuing operations before income taxes........................... $ 219,234 $ 279,037 $ 689,741 $ 722,147 Add: Interest expense............................. 53,805 42,917 158,213 137,084 Portion of rents representative of the interest factor........................... 10,837 10,029 32,354 31,223 Amortization of capitalized interest.................................. 244 244 730 730 Minority interest in the income of subsidiary with fixed charges........................ 3,712 3,061 10,537 8,726 ------------ ------------ ------------ ----------- Income as adjusted.............................. $ 287,832 $ 335,288 $ 891,575 $ 899,910 ============ ============ ============ =========== Fixed charges: Interest expense............................. $ 53,805 $ 42,917 $ 158,213 $ 137,084 Capitalized interest......................... 870 - 2,383 - Portion of rents representative of the interest factor........................... 10,837 10,029 32,354 31,223 Minority interest, excluding taxes, in the income of subsidiary with fixed charges............. 5,060 4,592 15,174 13,073 ------------ ------------ ------------ ----------- Total fixed charges......................... $ 70,572 $ 57,538 $ 208,124 $ 181,380 ============ ============ ============ =========== Ratio of earnings to fixed charges................................ 4.08 5.83 4.28 4.96 ============ ============ ============ =========== Ratio of earnings to fixed charges excluding minority interest..................................... 4.34 6.27 4.57 5.29 ============ ============ ============ =========== (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 nine months ended September 30, 1999. Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 5.76 and 4.86 for the three and nine months ended September 30, 1999, respectively. The ratio of earnings to fixed charges excluding minority interest would be 6.20 and 5.18 for the three and nine months ended September 30, 1999, respectively.