Exhibit (12)
Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
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(Dollars in thousands)
Three Months Ended March 31,
----------------------------
2000 1999 (2)
---------- ----------
Income from continuing
operations before income taxes......... $ 224,537 $ 209,240
Add:
Interest expense..................... 48,993 46,059
Portion of rents
representative of the
interest factor.................... 10,803 10,782
Amortization of capitalized
interest........................... 243 243
Minority interest
in the income of
subsidiary with
fixed charges...................... 3,282 2,873
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Income as adjusted..................... $ 287,858 $ 269,197
========== ==========
Fixed charges:
Interest expense..................... $ 48,993 $ 46,059
Capitalized interest................. 539 -
Portion of rents
representative of the
interest factor.................... 10,803 10,782
Minority interest, excluding
taxes, in the income of
subsidiary with fixed
charges............................ 4,862 4,338
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Total fixed charges................... $ 65,197 $ 61,179
========== ==========
Ratio of earnings to fixed
charges.............................. 4.42 4.40
========== ==========
Ratio of earnings to fixed
charges excluding minority
interest............................ 4.72 4.69
========== ==========
<FN>
(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 and the portion of rents representative of the interest
factor of the discontinued operations of AMIC have been excluded from fixed
charges in the computation for the three months ended March 31, 1999.
Including these amounts in fixed charges, the ratio of earnings to fixed
charges would be 4.28 for the three months ended March 31, 1999. The ratio
of earnings to fixed charges excluding minority interest would be 4.55 for
the three months ended March 31, 1999.
</FN>