Pitney Bowes Inc. - Form 10-Q Six Months Ended June 30, 1994 Page 15 of 15 Exhibit (ii) Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 1994 1993 1994 1993 Income before income taxes . . . . . . . $156,620 $138,753 $303,478 $269,132 Add: Interest expense . . . . . . . . . . . 46,703 47,010 90,437 97,236 Portion of rents representative of the interest factor. . . . . . . . . . . 11,558 9,709 23,712 19,124 Amortization of capitalized interest . . . . . . . . . . . . . . 231 231 463 463 Income as adjusted . . . . . . . . . . . $215,112 $195,703 $418,090 $385,955 Fixed charges: Interest expense . . . . . . . . . . . $ 46,703 $ 47,010 $ 90,437 $ 97,236 Capitalized interest . . . . . . . . . 110 - 172 - Portion of rents representative of the interest factor. . . . . . . . . . . 11,558 9,709 23,712 19,124 $ 58,371 $ 56,719 $114,321 $116,360 Ratio of earnings to fixed charges. . . . . . . . . . . . . . . . 3.69 3.45 3.66 3.32 <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.