EX-12 3 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT (i) ----------- PITNEY BOWES INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1) (Dollars in thousands)
Years Ended December 31 -------------------------------------------------------------------------- 2001 (2) 2000 (2) 1999 (2) 1998 (2) 1997 (2) -------------- ------------- ------------ ----------- ------------ Income from continuing operations before income taxes $ 766,384 $ 802,848 $ 823,942 $ 658,662 $ 605,788 Add: Interest expense 193,076 200,957 175,699 156,284 157,322 Portion of rents representative of the interest factor 36,032 34,512 33,042 36,403 38,284 Amortization of capitalized interest 973 973 973 973 914 Minority interest in the income of subsidiary with fixed charges 9,995 14,237 12,033 12,425 11,322 ------------ ------------- ------------ ----------- ----------- Income as adjusted $ 1,006,460 $ 1,053,527 $ 1,045,689 $ 864,747 $ 813,630 ============ ============= ============ =========== =========== Fixed charges:` Interest expense $ 193,076 $ 200,957 $ 175,699 $ 156,284 $ 157,322 Capitalized interest - 2,383 1,316 - - Portions of rents representative of the interest factor 36,032 34,512 33,042 36,403 38,284 Minority interest, excluding taxes, in the income of subsidiary with fixed charges 14,893 20,298 17,610 18,468 16,856 ------------ ------------- ------------ ----------- ----------- Total fixed charges $ 244,001 $ 258,150 $ 227,667 $ 211,155 $ 212,462 ============ ============= ============ =========== =========== Ratio of earnings to fixed charges 4.12 4.08 4.59 4.10 3.83 Ratio of earnings to fixed charges excluding minority interest 4.35 4.37 4.92 4.42 4.10
(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 reclassified to reflect Office Systems, CPLC and AMIC as discontinued operations. Interest expense and the portion of rents representative of the interest factor of these discontinued operations have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 3.98, 3.95, 4.37, 3.56, and 3.75 for the years ended December 31, 2001, 2000, 1999, 1998, and 1997, respectively. The ratio of earnings to fixed charges excluding minority interest would be 4.19, 4.21, 4.66, 3.78, and 4.00 for the years ended December 31, 2001, 2000, 1999, 1998, and 1997, respectively. 72