Pitney Bowes (PBI) 10-K 2015 FY Annual report

Exhibit 12

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

	Years Ended December 31,
	2015		2014		2013		2012		2011
Income from continuing operations before income taxes	$	610,825	$	431,196	$	383,954	$	511,770	$	465,616
Add:
Interest expense (1)	162,909		174,661		195,836		196,368		203,061
Portion of rents representative of the interest factor	15,807		18,367		22,259		22,564		25,893
Amortization of capitalized interest	—		—		—		973		1,535
Income as adjusted	$	789,541	$	624,224	$	602,049	$	731,675	$	696,105
Fixed charges:
Interest expense (1)	$	162,909	$	174,661	$	195,836	$	196,368	$	203,061
Portion of rents representative of the interest factor	15,807		18,367		22,259		22,564		25,893
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes	29,830		29,878		27,841		27,841		27,507
Total fixed charges	$	208,546	$	222,906	$	245,936	$	246,773	$	256,461
Ratio of earnings to fixed charges (2)	3.79		2.80		2.45		2.96		2.71

(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.