EX-12 2 exhibit_i.htm  

EXHIBIT (i)

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)

(Dollars in thousands)

                                         
  Years ended December 31
    2004       2003       2002       2001 (2)       2000 (2)  
 
   
   
   
   
Income from continuing operations before income taxes
   $ 699,448     $ 721,091     $ 619,445     $ 766,384     $ 802,848  
Add:
                                        
Interest expense
     172,403       167,649       185,352       193,076       200,957  
Portion of rents representative of the interest factor
     51,445       45,978       43,032       36,032       34,512  
Amortization of capitalized interest
     1,473       1,473       1,348       973       973  
Minority interest in the income of subsidiary with fixed charges
     4,791       3,924       5,415       9,995       14,237  
 
   
   
   
   
Income as adjusted
   $ 929,560     $ 940,115     $ 854,592     $ 1,006,460     $ 1,053,527  
 
   
   
   
   
Fixed charges:
                                        
Interest expense
   $ 172,403     $ 167,649     $ 185,352     $ 193,076     $ 200,957  
Capitalized interest
     -       -       -       -       2,383  
Portions of rents representative of the interest factor
     51,445       45,978       43,032       36,032       34,512  
Minority interest, excluding taxes, in the income of subsidiary with fixed charges
     6,974       5,718       7,663       14,893       20,298  
 
   
   
   
   
Total fixed charges
   $ 230,822     $ 219,345     $ 236,047     $ 244,001     $ 258,150  
 
   
   
   
   
Ratio of earnings to fixed charges
     4.03       4.29       3.62       4.12       4.08  
     
(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)		   Amounts reclassified to reflect IGI, CPLC and AMIC as discontinued operations. Interest expense and the portion of rents representative of the interest factor of these discontinued operations have been excluded from fixed charges in the computation.
     
  Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 3.98 and 3.95 for the years ended December 31, 2001 and 2000, respectively.

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