Pitney Bowes 2007 Annual Report Download - page 101

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83
EXHIBIT (iii)
PITNEY BOWES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(Dollars in thousands)
Years ended December 31,
2007 2006 2005 2004 2003
Income from continuing operations before
income taxes and minority interest .............
$ 660,711
$ 914,490
$ 811,668
$ 608,390
$ 593,657
Add:
Interest expense ........................................... 250,540 228,418 193,174 161,650 166,856
Portion of rents representative of the
interest factor .............................................
48,969
46,255
52,823
51,445
45,978
Amortization of capitalized interest............. 1,717 1,345 986 1,473 1,473
Income as adjusted ........................................ $ 961,937 $ 1,190,508 $ 1,058,651 $ 822,958 $ 807,964
Fixed charges:
Interest expense ........................................... $ 250,540 $ 228,418 $ 193,174 $ 161,650 $ 166,856
Portions of rents representative of the
interest factor .............................................
48,969
46,255
52,823
51,445
45,978
Minority interest, excluding taxes, in the
income of subsidiary with fixed charges....
33,412
21,819
16,512
8,338
5,701
Total fixed charges........................................ $ 332,921 $ 296,492 $ 262,509 $ 221,433 $ 218,535
Ratio of earnings to fixed charges................. 2.89 4.02 4.03 3.72 3.70
(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.