Pitney Bowes (PBI) 10-Q 2008 Q2 Quarterly report

Exhibit (12)

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

		Three Months Ended				Six Months Ended
(Dollars in thousands)		June 30,				June 30,
		2008		2007		2008		2007
Income from continuing operations before income taxes and
minority interest (preferred stock dividends of subsidiaries)	$	206,522	$	239,965	$	409,802	$	471,001
Add:
Interest expense		57,689		66,437		119,457		125,042
Portion of rents representative of the interest factor		11,265		9,764		22,311		18,937
Amortization of capitalized interest		429		429		858		858
Income as adjusted	$	275,905	$	316,595	$	552,428	$	615,838
Fixed charges:
Interest expense	$	57,689	$	66,437	$	119,457	$	125,042
Portion of rents representative of the interest factor		11,265		9,764		22,311		18,937
Minority interest (preferred stock dividends of subsidiaries),
excluding taxes		7,275		7,267		14,900		14,510
Total fixed charges	$	76,229	$	83,468	$	156,668	$	158,489
Ratio of earnings to fixed charges		3.62		3.79		3.53		3.89

(1) The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes and minority interest as adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest.

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