Pitney Bowes Inc. - Form 10-Q Exhibit (ii) Three Months Ended March 31, 1994 Page 15 of 15 Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended March 31, 1994 1993 Income before income taxes . . . . . . . . $146,858 $130,379 Add: Interest expense . . . . . . . . . . . . 43,734 50,226 Portion of rents representative of the interest factor. . . . . . . . . . . . 12,154 9,415 Amortization of capitalized interest . . . . . . . . . . . . . . . 232 232 Income as adjusted . . . . . . . . . . . . $202,978 $190,252 Fixed charges: Interest expense . . . . . . . . . . . . $ 43,734 $ 50,226 Capitalized interest . . . . . . . . . . 62 - Portion of rents representative of the interest factor. . . . . . . . . . . . 12,154 9,415 $ 55,950 $ 59,641 Ratio of earnings to fixed charges. . . . . . . . . . . . . . . . . 3.63 3.19 <FN> (1) The computation of the ratio of earnings to fixed charges has been computed by dividing income before income taxes and fixed charges by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest.