Pitney Bowes (PBI) 10-Q 2012 Q3 Quarterly report

Exhibit (12)

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2012		2011		2012		2011
Income from continuing operations before income taxes	$	107,616	$	99,845	$	422,795	$	393,195
Add:
Interest expense (1)	47,145		50,362		148,646		152,921
Portion of rents representative of the interest factor	9,035		10,059		26,949		29,112
Amortization of capitalized interest	243		429		730		1,287
Income as adjusted	$	164,039	$	160,695	$	599,120	$	576,515
Fixed charges:
Interest expense (1)	$	47,145	$	50,362	$	148,646	$	152,921
Portion of rents representative of the interest factor	9,035		10,059		26,949		29,112
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes	6,760		6,855		19,600		20,386
Total fixed charges	$	62,940	$	67,276	$	195,195	$	202,419
Ratio of earnings to fixed charges (2)	2.61		2.39		3.07		2.85

(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.