EX-12 2 d18625_ex12.htm

EXHIBIT (i)

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

(Dollars in thousands)


 		          Years ended December 31
     

 		          2005
      2004
      2003
      2002
      2001 (2)
Income from continuing operations before income taxes
                  $ 867,124           $ 699,448           $ 721,091           $ 619,445           $ 766,384   
Add:
                                                                                                              
Interest expense
                     213,556              177,126              171,281              190,652              202,174   
Portion of rents representative of the interest factor
                     52,823              51,445              45,978              43,032              36,032   
Amortization of capitalized interest
                     986              1,473              1,473              1,348              973    
Minority interest in the income of subsidiary with
fixed charges
                     8,917              4,791              3,924              5,415              9,995   
Income as adjusted
                  $ 1,143,406           $ 934,283           $ 943,747           $ 859,892           $ 1,015,558   
Fixed charges:
                                                                                                              
Interest expense
                  $ 213,556           $ 177,126           $ 171,281           $ 190,652           $ 202,174   
Portions of rents representative of the interest factor
                     52,823              51,445              45,978              43,032              36,032   
Minority interest, excluding taxes, in the income of subsidiary with fixed charges
                     14,683              6,974              5,718              7,663              14,893   
Total fixed charges
                  $ 281,062           $ 235,545           $ 222,977           $ 241,347           $ 253,099   
 
Ratio of earnings to fixed charges
                     4.07              3.97              4.23              3.56              4.01   
 
(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 3.87 for the year ended December 31, 2001.

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