Pitney Bowes (PBI) 10-Q 2010 Q2 Quarterly report

Exhibit (12)

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

(Dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Income from continuing operations before income taxes	$	103,767	$	179,266	$	263,775	$	357,715
Add:
Interest expense (2)		51,024		54,991		100,621		107,194
Portion of rents representative of the interest factor		9,809		10,248		19,946		20,081
Amortization of capitalized interest		429		429		858		858
Income as adjusted	$	165,029	$	244,934	$	385,200	$	485,848
Fixed charges:
Interest expense (2)	$	51,024	$	54,991	$	100,621	$	107,194
Portion of rents representative of the interest factor		9,809		10,248		19,946		20,081
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes		6,873		7,019		15,513		14,582
Total fixed charges	$	67,706	$	72,258	$	136,080	$	141,857
Ratio of earnings to fixed charges		2.44		3.39		2.83		3.42

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

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