Pitney Bowes 2011 Annual Report Download - page 110

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92
EXHIBIT (12)
PITNEY BOWES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(Dollars in thousands)
Years ended December 31,
2011 2010 2009 2007 2006
Income from continuing operations
before income taxes $ 414,281 $ 534,577 $ 693,176 $ 713,177 $ 660,711
Add:
Interest expense (2) 203,061 203,911 208,855 229,343 250,540
Portion of rents representative of the
interest factor 38,968 39,219 41,499 43,030 48,969
Amortization of capitalized interest 1,535 1,716 1,716 1,717 1,717
Income as adjusted $ 657,845 $ 779,423 $ 945,246 $ 987,267 $ 961,937
Fixed charges:
Interest expense (2) $ 203,061 $ 203,911 $ 208,855 $ 229,343 $ 250,540
Portion of rents representative of the
interest factor 38,968 39,219 41,499 43,030 48,969
Noncontrolling interests (preferred stock
dividends of subsidiaries), excluding taxes 27,507 29,790 32,851 31,610 33,412
Total fixed charges $ 269,536 $ 272,920 $ 283,205 $ 303,983 $ 332,921
Ratio of earnings to fixed charges 2.44 2.86 3.34 3.25 2.89
(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) Interest expense includes both financing interest expense and other interest expense.