Pitney Bowes 2008 Annual Report Download - page 109

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90
EXHIBIT (iv)
PITNEY BOWES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(Dollars in thousands)
Years ended December 31,
2008 2007 2006 2005 2004
Income from continuing operations before
income taxes and minority interest $ 713,177 $ 660,711 $ 914,490 $ 811,668 $ 608,390
Add:
Interest expense 229,343 250,540 228,418 193,174 161,650
Portion of rents representative of the
interest factor 43,030 48,969 46,255 52,823 51,445
Amortization of capitalized interest 1,717 1,717 1,345 986 1,473
Income as adjusted $ 987,267 $ 961,937 $ 1,190,508 $ 1,058,651 $ 822,958
Fixed charges:
Interest expense $ 229,343 $ 250,540 $ 228,418 $ 193,174 $ 161,650
Portions of rents representative of the
interest factor 43,030 48,969 46,255 52,823 51,445
Minority interest, excluding taxes, in the
income of subsidiary with fixed charges 31,610 33,412 21,819 16,512 8,338
Total fixed charges $ 303,983 $ 332,921 $ 296,492 $ 262,509 $ 221,433
Ratio of earnings to fixed charges 3.25 2.89 4.02 4.03 3.72
(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 o
f
interest.