Pitney Bowes (PBI) 10-Q 2012 Q2 Quarterly report

Exhibit (12)

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2012		2011		2012		2011
Income from continuing operations before income taxes	$	156,488	$	159,176	$	315,179	$	293,350
Add:
Interest expense (1)	50,995		50,742		101,501		102,559
Portion of rents representative of the interest factor	9,042		9,257		17,914		19,063
Amortization of capitalized interest	243		429		486		858
Income as adjusted	$	216,768	$	219,604	$	435,080	$	415,830
Fixed charges:
Interest expense (1)	$	50,995	$	50,742	$	101,501	$	102,559
Portion of rents representative of the interest factor	9,042		9,257		17,914		19,063
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes	6,898		6,888		13,845		13,548
Total fixed charges	$	66,935	$	66,887	$	133,260	$	135,170
Ratio of earnings to fixed charges (2)	3.24		3.28		3.26		3.08

(1) Interest expense includes both financing interest expense and other interest expense.

(2) 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 rent expense as the representative portion of interest.