EXHIBIT (i)
PITNEY BOWES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(Dollars in thousands)
| Years ended December 31 | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | 2003 | 2002 | 2001 (2) | |||||||||||||||||||
| Income from continuing operations before income taxes | $ | 867,124 | $ | 699,448 | $ | 721,091 | $ | 619,445 | $ | 766,384 | |||||||||||||
| Add: | |||||||||||||||||||||||
| Interest expense | 213,556 | 177,126 | 171,281 | 190,652 | 202,174 | ||||||||||||||||||
| Portion of rents representative of the interest factor | 52,823 | 51,445 | 45,978 | 43,032 | 36,032 | ||||||||||||||||||
| Amortization of capitalized interest | 986 | 1,473 | 1,473 | 1,348 | 973 | ||||||||||||||||||
| Minority interest in the income of subsidiary with fixed charges | 8,917 | 4,791 | 3,924 | 5,415 | 9,995 | ||||||||||||||||||
| Income as adjusted | $ | 1,143,406 | $ | 934,283 | $ | 943,747 | $ | 859,892 | $ | 1,015,558 | |||||||||||||
| Fixed charges: | |||||||||||||||||||||||
| Interest expense | $ | 213,556 | $ | 177,126 | $ | 171,281 | $ | 190,652 | $ | 202,174 | |||||||||||||
| Portions of rents representative of the interest factor | 52,823 | 51,445 | 45,978 | 43,032 | 36,032 | ||||||||||||||||||
| Minority interest, excluding taxes, in the income of subsidiary with fixed charges | 14,683 | 6,974 | 5,718 | 7,663 | 14,893 | ||||||||||||||||||
| Total fixed charges | $ | 281,062 | $ | 235,545 | $ | 222,977 | $ | 241,347 | $ | 253,099 | |||||||||||||
| Ratio of earnings to fixed charges | 4.07 | 3.97 | 4.23 | 3.56 | 4.01 | ||||||||||||||||||
| (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) | Amounts reclassified to reflect IGI, CPLC and AMIC as discontinued operations. Interest expense and the portion of rents representative of the interest factor of these discontinued operations have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 3.87 for the year ended December 31, 2001. |
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