Pitney Bowes Credit Corporation - Form 10-Q Nine Months Ended September 30, 1996 Page 21 of 22 Exhibit (ii) Computation of Ratio of Earnings to Fixed Charges ------------------------------------------------- (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, Years Ended December 31, ----------------- ----------------- ------------------------------------------- 1996 1995 1996 1995 1995 1994 1993 1992 1991 -------- ------- -------- ------- ------- ------- ------- ------- ------- Income before income taxes. . . . . . . . $ 65,157 $ 57,985 $194,925 $165,948 $231,334 $218,913 $189,960 $185,704 $148,746 ------- ------- ------- ------- ------- ------- ------- ------- ------- Fixed charges: Interest on debt . . 50,394 51,236 149,663 150,703 202,090 151,239 137,372 146,594 167,236 1/3 rental expense . 393 389 1,190 1,154 1,519 1,463 1,575 1,491 1,389 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total fixed charges . 50,787 51,625 150,853 151,857 203,609 152,702 138,947 148,085 168,625 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . . . $115,944 $109,610 $345,778 $317,805 $434,943 $371,615 $328,907 $333,789 $317,371 ======= ======= ======= ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges (1). . 2.28X 2.12X 2.29X 2.09X 2.14X 2.43X 2.37X 2.25X 1.88X ======= ======= ======= ======= ======= ======= ======= ======= ======= <FN> (1) The ratio of earnings to fixed charges is computed by dividing income before income taxes and fixed charges by fixed charges. Fixed charges consist of interest on debt and one-third rental expense as representative of the interest portion of rentals.