EX-12 3 y08038exv12.htm EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12
 

Exhibit (12)

Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)

                 
    Three Months Ended March 31,  
(Dollars in thousands)   2005     2004  
Income before income taxes
   $ 227,769     $ 186,021  
 
                
Add:
                
Interest expense
     46,367       41,472  
Portion of rents representative of the interest factor
     13,930       13,215  
Amortization of capitalized interest
     369       369  
Minority interest in the income of subsidiary with fixed charges
     1,758       910  
 
            
 
                
Income as adjusted
   $ 290,193     $ 241,987  
 
            
 
                
Fixed charges:
                
Interest expense
   $ 46,367     $ 41,472  
Portion of rents representative of the interest factor
     13,930       13,215  
Minority interest, excluding taxes, in the income of subsidiary with fixed charges
     2,677       1,337  
 
            
 
                
Total fixed charges
   $ 62,974     $ 56,024  
 
            
 
                
Ratio of earnings to fixed charges
     4.61       4.32  
 
            

(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.