Pitney Bowes Inc. - Form 10-Q Pitney Bowes Inc. Six Months Ended June 30, 1995 Computation of Earnings per Share Exhibit (i) Page 17 of 19 Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 1995 1994(1) 1995 1994(1) Primary Income from continuing operations (2) $ 98,348 $ 87,086 $ 194,337 $ 168,693 Discontinued operations 10,675 11,532 20,997 21,786 Effect of accounting change - - - (119,532) Net income applicable to common stock $ 109,023 $ 98,618 $ 215,334 $ 70,947 Weighted average number of common shares outstanding 151,140,234 157,752,918 151,147,730 157,918,406 Preference stock, $2.12 cumulative convertible 789,002 850,662 800,486 860,118 Stock option and purchase plans 324,315 513,514 224,559 571,307 Total common and common equivalent shares outstanding 152,253,551 159,117,094 152,172,775 159,349,831 Income per common and common equivalent share - primary: Continuing operations $ .65 $ .55 $ 1.28 $ 1.06 Discontinued operations .07 .07 .14 .14 Effect of accounting change - - - (.75) Net income $ .72 $ .62 $ 1.42 $ .45 Fully Diluted Income from continuing operations $ 98,349 $ 87,086 $ 194,338 $ 168,694 Discontinued operations 10,675 11,532 20,997 21,786 Effect of accounting change - - - (119,532) Net income applicable to common stock $ 109,024 $ 98,618 $ 215,335 $ 70,948 Weighted average number of common shares outstanding 151,140,234 157,752,918 151,147,730 157,918,406 Preference stock, $2.12 cumulative convertible 789,002 850,662 800,486 860,118 Stock option and purchase plans 356,987 522,388 259,794 592,135 Preferred stock, 4% cumulative convertible 11,490 15,235 11,526 15,804 Total common and common equivalent shares outstanding 152,297,713 159,141,203 152,219,536 159,386,463 Income per common and common equivalent share - fully diluted: Continuing operations $ .65 $ .55 $ 1.28 $ 1.06 Discontinued operations .07 .07 .14 .14 Effect of accounting change - - - (.75) Net income $ .72 $ .62 $ 1.42 $ .45 <FN> (1) Reclassified to reflect discontinued operations. <FN> (2) Income from continuing operations was adjusted for preferred dividends.