EX-12 2 c66567_ex12.htm

Exhibit (12)

PITNEY BOWES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

159,176

 

$

103,767

 

$

293,350

 

$

263,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (2)

 

 

50,742

 

 

51,025

 

 

102,559

 

 

100,621

 

Portion of rents representative of the interest factor

 

 

9,257

 

 

9,809

 

 

19,063

 

 

19,946

 

Amortization of capitalized interest

 

 

429

 

 

429

 

 

858

 

 

858

 

 

 

 

 

 

 

Income as adjusted

 

$

219,604

 

$

165,030

 

$

415,830

 

$

385,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (2)

 

$

50,742

 

$

51,025

 

$

102,559

 

$

100,621

 

Portion of rents representative of the interest factor

 

 

9,257

 

 

9,809

 

 

19,063

 

 

19,946

 

Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes

 

 

6,888

 

 

6,873

 

 

13,548

 

 

15,513

 

 

 

 

 

 

 

Total fixed charges

 

$

66,887

 

$

67,707

 

$

135,170

 

$

136,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

3.28

 

 

2.44

 

 

3.08

 

 

2.83

 

 

 

 

 

 

 

 

 

(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 includes both financing interest expense and other interest expense.

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