Exhibit (12)
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Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
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(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
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2004 2003 2004 2003
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Income before income taxes............................ $ 197,948 $ 172,968 $ 383,969 $ 339,243
Add:
Interest expense.................................... 42,152 40,714 83,624 84,513
Portion of rents representative
of the interest factor............................ 12,128 11,024 25,343 22,689
Amortization of capitalized
interest.......................................... 367 368 736 736
Minority interest in the income of
subsidiary with fixed charges..................... 923 1,001 1,833 2,098
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Income as adjusted.................................... $ 253,518 $ 226,075 $ 495,505 $ 449,279
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Fixed charges:
Interest expense.................................... $ 42,152 $ 40,714 $ 83,624 $ 84,513
Portion of rents representative
of the interest factor............................ 12,128 11,024 25,343 22,689
Minority interest, excluding taxes, in the
income of subsidiary with fixed charges........... 1,356 1,456 2,693 3,057
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Total fixed charges................................... $ 55,636 $ 53,194 $ 111,660 $ 110,259
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Ratio of earnings to fixed charges.................... 4.56 4.25 4.44 4.07
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<FN>
(1) The computation of the ratio of earnings to fixed charges has been computed by dividing income before income taxes as
adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of
interest.
</FN>