Exhibit (12)
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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1999 1998(2) 1999 1998(2)
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Income from continuing operations
before income taxes........................... $ 233,870 $ 201,820 $ 443,110 $ 387,874
Add:
Interest expense............................. 48,108 42,188 94,167 78,696
Portion of rents
representative of the
interest factor........................... 10,412 12,165 21,194 22,281
Amortization of capitalized
interest.................................. 243 243 486 486
Minority interest in the
income of subsidiary
with fixed charges........................ 2,792 3,070 5,665 6,129
------------ ------------ ------------ -----------
Income as adjusted.............................. $ 295,425 $ 259,486 $ 564,622 $ 495,466
============ ============ ============ ===========
Fixed charges:
Interest expense............................. $ 48,108 $ 42,188 $ 94,167 $ 78,696
Portion of rents
representative of the
interest factor........................... 10,412 12,165 21,194 22,281
Minority interest, excluding
taxes, in the income of
subsidiary with fixed charges............. 4,149 4,666 8,481 9,315
------------ ------------ ------------ -----------
Total fixed charges....................... $ 62,669 $ 59,019 $ 123,842 $ 110,292
============ ============ ============ ===========
Ratio of earnings to
fixed charges................................ 4.71 4.40 4.56 4.49
============ ============ ============ ===========
Ratio of earnings to fixed
charges excluding minority
interest..................................... 5.00 4.72 4.85 4.85
============ ============ ============ ===========
<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) Amounts recomputed to reflect discontinued operations.
</FN>