Incorporated in Delaware
|
I.R.S. Employer Identification No. 06-0495050
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1 Elmcroft Road, Stamford, CT 06926-0700
|
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(203) 356-5000
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Title of Each Class
|
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Name of Each Exchange on Which Registered
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Common Stock, $1 par value per share
|
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New York Stock Exchange
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$2.12 Convertible Cumulative Preference Stock (no par value)
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New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Page Number
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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||
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•
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challenges in identifying and evaluating the acquisitions and divestitures that best enable our future success;
|
•
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inability to complete acquisitions or divestitures on satisfactory terms or time frames or at all;
|
•
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loss of key employees or clients of businesses acquired or divested;
|
•
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difficulties in integrating newly acquired businesses and operations, including combining product and service offerings and entering new markets;
|
•
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difficulties in reducing fixed costs previously associated with divested assets or businesses; and
|
•
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difficulties in identifying and separating intellectual property to be divested from intellectual property we wish to keep.
|
•
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the generation, storage, use and transportation of hazardous materials;
|
•
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emissions or discharges of substances into the environment;
|
•
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substances that may be subject to regulation in the manufacture, distribution, use or disposal of our products; and
|
•
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the health and safety of our employees.
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Stock Price
|
|
Dividend Per Share
|
|||
|
High
|
|
Low
|
|
||
Year Ended December 31, 2012
|
|
|
|
|
|
|
First Quarter
|
$19.65
|
|
$17.45
|
|
$0.375
|
|
Second Quarter
|
$17.87
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|
$12.81
|
|
0.375
|
|
Third Quarter
|
$15.27
|
|
$12.64
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|
0.375
|
|
Fourth Quarter
|
$14.73
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|
$10.34
|
|
0.375
|
|
|
|
|
|
|
$1.50
|
|
Year Ended December 31, 2011
|
|
|
|
|
|
|
First Quarter
|
$26.15
|
|
$23.46
|
|
$0.37
|
|
Second Quarter
|
$26.36
|
|
$22.05
|
|
0.37
|
|
Third Quarter
|
$23.47
|
|
$18.00
|
|
0.37
|
|
Fourth Quarter
|
$21.20
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$17.33
|
|
0.37
|
|
|
|
|
|
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$1.48
|
(1)
|
Amounts have been revised to reflect the results of IMS as a discontinued operation.
|
(2)
|
The sum of earnings per share may not equal the totals due to rounding
.
|
•
|
declining physical mail volumes
|
•
|
mailers’ utilization of alternative means of communication or competitors’ products
|
•
|
access to capital at a reasonable cost to continue to fund various discretionary priorities, including business investments, pension contributions and dividend payments
|
•
|
timely development and acceptance of new products and services
|
•
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successful entry into new markets
|
•
|
success in gaining product approval in new markets where regulatory approval is required
|
•
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changes in postal or banking regulations
|
•
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interrupted use of key information systems
|
•
|
third-party suppliers’ ability to provide product components, assemblies or inventories
|
•
|
our success at managing the relationships with our outsource providers, including the costs of outsourcing functions and operations not central to our business
|
•
|
changes in privacy laws
|
•
|
intellectual property infringement claims
|
•
|
regulatory approvals and satisfaction of other conditions to consummate and integrate any acquisitions
|
•
|
negative developments in economic conditions, including adverse impacts on customer demand
|
•
|
our success at managing customer credit risk
|
•
|
significant changes in pension, health care and retiree medical costs
|
•
|
changes in interest rates, foreign currency fluctuations or credit ratings
|
•
|
income tax adjustments or other regulatory levies for prior audit years and changes in tax laws, rulings or regulations
|
•
|
impact on mail volume resulting from concerns over the use of the mail for transmitting harmful biological agents
|
•
|
changes in international or national political conditions, including any terrorist attacks
|
•
|
acts of nature
|
Revenue
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
||||||||
Equipment sales
|
$
|
938
|
|
|
$
|
986
|
|
|
$
|
1,023
|
|
|
(5
|
)%
|
|
(4
|
)%
|
Supplies
|
284
|
|
|
308
|
|
|
318
|
|
|
(8
|
)%
|
|
(3
|
)%
|
|||
Software
|
413
|
|
|
427
|
|
|
390
|
|
|
(3
|
)%
|
|
9
|
%
|
|||
Rentals
|
570
|
|
|
619
|
|
|
651
|
|
|
(8
|
)%
|
|
(5
|
)%
|
|||
Financing
|
495
|
|
|
547
|
|
|
587
|
|
|
(10
|
)%
|
|
(7
|
)%
|
|||
Support services
|
690
|
|
|
707
|
|
|
712
|
|
|
(2
|
)%
|
|
(1
|
)%
|
|||
Business services
|
1,515
|
|
|
1,529
|
|
|
1,579
|
|
|
(1
|
)%
|
|
(3
|
)%
|
|||
Total revenue
|
$
|
4,904
|
|
|
$
|
5,123
|
|
|
$
|
5,260
|
|
|
(4
|
)%
|
|
(3
|
)%
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31,
|
|||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||
|
$
|
|
% of revenue
|
|
$
|
|
% of revenue
|
|
$
|
|
% of revenue
|
|||||||||
Cost of equipment sales
|
$
|
459
|
|
|
48.9
|
%
|
|
$
|
449
|
|
|
45.6
|
%
|
|
$
|
469
|
|
|
45.9
|
%
|
Cost of supplies
|
88
|
|
|
30.9
|
%
|
|
97
|
|
|
31.6
|
%
|
|
97
|
|
|
30.5
|
%
|
|||
Cost of software
|
93
|
|
|
22.5
|
%
|
|
99
|
|
|
23.2
|
%
|
|
93
|
|
|
23.9
|
%
|
|||
Cost of rentals
|
115
|
|
|
20.3
|
%
|
|
139
|
|
|
22.4
|
%
|
|
155
|
|
|
23.9
|
%
|
|||
Financing interest expense
|
81
|
|
|
16.4
|
%
|
|
88
|
|
|
16.0
|
%
|
|
88
|
|
|
15.0
|
%
|
|||
Cost of support services
|
440
|
|
|
63.8
|
%
|
|
453
|
|
|
64.1
|
%
|
|
452
|
|
|
63.5
|
%
|
|||
Cost of business services
|
1,157
|
|
|
76.4
|
%
|
|
1,161
|
|
|
76.0
|
%
|
|
1,173
|
|
|
74.3
|
%
|
|||
Total cost of revenue
|
$
|
2,433
|
|
|
49.6
|
%
|
|
$
|
2,486
|
|
|
48.5
|
%
|
|
$
|
2,529
|
|
|
48.1
|
%
|
Revenue
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
||||||||
North America Mailing
|
$
|
1,819
|
|
|
$
|
1,961
|
|
|
$
|
2,101
|
|
|
(7
|
)%
|
|
(7
|
)%
|
International Mailing
|
676
|
|
|
707
|
|
|
675
|
|
|
(4
|
)%
|
|
5
|
%
|
|||
Small & Medium Business Solutions
|
2,495
|
|
|
2,669
|
|
|
2,775
|
|
|
(7
|
)%
|
|
(4
|
)%
|
|||
Production Mail
|
512
|
|
|
544
|
|
|
561
|
|
|
(6
|
)%
|
|
(3
|
)%
|
|||
Software
|
393
|
|
|
407
|
|
|
375
|
|
|
(3
|
)%
|
|
9
|
%
|
|||
Management Services
|
921
|
|
|
949
|
|
|
999
|
|
|
(3
|
)%
|
|
(5
|
)%
|
|||
Mail Services
|
445
|
|
|
412
|
|
|
408
|
|
|
8
|
%
|
|
1
|
%
|
|||
Marketing Services
|
138
|
|
|
142
|
|
|
142
|
|
|
(3
|
)%
|
|
—
|
%
|
|||
Enterprise Business Solutions
|
2,409
|
|
|
2,454
|
|
|
2,485
|
|
|
(2
|
)%
|
|
(1
|
)%
|
|||
Total
|
$
|
4,904
|
|
|
$
|
5,123
|
|
|
$
|
5,260
|
|
|
(4
|
)%
|
|
(3
|
)%
|
EBIT
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
||||||||
North America Mailing
|
$
|
689
|
|
|
$
|
728
|
|
|
$
|
755
|
|
|
(5
|
)%
|
|
(4
|
)%
|
International Mailing
|
79
|
|
|
99
|
|
|
79
|
|
|
(20
|
)%
|
|
25
|
%
|
|||
Small & Medium Business Solutions
|
768
|
|
|
827
|
|
|
834
|
|
|
(7
|
)%
|
|
(1
|
)%
|
|||
Production Mail
|
26
|
|
|
33
|
|
|
61
|
|
|
(21
|
)%
|
|
(47
|
)%
|
|||
Software
|
38
|
|
|
38
|
|
|
40
|
|
|
(1
|
)%
|
|
(5
|
)%
|
|||
Management Services
|
55
|
|
|
76
|
|
|
93
|
|
|
(28
|
)%
|
|
(18
|
)%
|
|||
Mail Services
|
101
|
|
|
103
|
|
|
85
|
|
|
(2
|
)%
|
|
22
|
%
|
|||
Marketing Services
|
28
|
|
|
26
|
|
|
26
|
|
|
7
|
%
|
|
—
|
%
|
|||
Enterprise Business Solutions
|
248
|
|
|
276
|
|
|
304
|
|
|
(10
|
)%
|
|
(9
|
)%
|
|||
Total
|
$
|
1,016
|
|
|
$
|
1,103
|
|
|
$
|
1,139
|
|
|
(8
|
)%
|
|
(3
|
)%
|
|
Year Ended December 31,
|
|
Change
|
||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
||||||||||
Net cash provided by operating activities
|
$
|
660
|
|
|
$
|
949
|
|
|
$
|
952
|
|
|
$
|
(289
|
)
|
|
$
|
(3
|
)
|
Net cash used in investing activities
|
(87
|
)
|
|
(117
|
)
|
|
(301
|
)
|
|
30
|
|
|
184
|
|
|||||
Net cash used in financing activities
|
(520
|
)
|
|
(455
|
)
|
|
(580
|
)
|
|
(65
|
)
|
|
125
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
3
|
|
|
(5
|
)
|
|
1
|
|
|
8
|
|
|
(6
|
)
|
|||||
Change in cash and cash equivalents
|
$
|
57
|
|
|
$
|
372
|
|
|
$
|
72
|
|
|
$
|
(316
|
)
|
|
$
|
300
|
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
Long-term debt
|
$
|
3,965
|
|
|
$
|
375
|
|
|
$
|
900
|
|
|
$
|
1,180
|
|
|
$
|
1,510
|
|
Interest payments on debt
(1)
|
1,254
|
|
|
174
|
|
|
309
|
|
|
211
|
|
|
560
|
|
|||||
Non-cancelable operating lease obligations
|
284
|
|
|
91
|
|
|
120
|
|
|
51
|
|
|
22
|
|
|||||
Purchase obligations (2)
|
274
|
|
|
225
|
|
|
48
|
|
|
1
|
|
|
—
|
|
|||||
Pension plan contributions (3)
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Retiree medical payments (4)
|
218
|
|
|
26
|
|
|
49
|
|
|
45
|
|
|
98
|
|
|||||
Total
|
$
|
6,025
|
|
|
$
|
921
|
|
|
$
|
1,426
|
|
|
$
|
1,488
|
|
|
$
|
2,190
|
|
(1)
|
Interest payments on debt includes interest on our $500 million 5.25% notes due in 2037. Bondholders may redeem these notes, in whole or in part, at par plus accrued interest, in January 2017. If all $500 million of the notes are redeemed in January 2017, total interest payments would be reduced by $524 million. Interest payments on debt also include interest on the $110 million 5.25% notes due in 2022. These notes may be redeemed by us, in whole or in part, at anytime on or after November 2015 at par plus accrued interest. If we redeem all the notes in November 2015, total interest payments would be reduced by $40 million.
|
(2)
|
Purchase obligations include unrecorded agreements to purchase goods or services that are enforceable and legally binding upon us and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty.
|
(3)
|
Pension plan contributions represent the amount we anticipate making to our pension plans during 2013; however, we will assess our funding alternatives as the year progresses.
|
(4)
|
Our retiree health benefit plans are non-funded plans and cash contributions are made each year to cover medical claims costs incurred. The amounts reported in the above table represent our estimate of future benefits payments.
|
|
U.S. Pension Plan
|
|
U.K. Pension Plan
|
||||||||
|
Allocation of plan assets at December 31, 2012
|
|
2013 Target allocation
|
|
Allocation of plan assets at December 31, 2012
|
|
2013 Target allocation
|
||||
Equity securities
|
29
|
%
|
|
28
|
%
|
|
63
|
%
|
|
65
|
%
|
Fixed income
|
61
|
%
|
|
62
|
%
|
|
36
|
%
|
|
35
|
%
|
Real estate
|
4
|
%
|
|
2
|
%
|
|
—
|
%
|
|
—
|
%
|
Private equity
|
6
|
%
|
|
8
|
%
|
|
—
|
%
|
|
—
|
%
|
Cash
|
—
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Name
|
|
Age
|
|
Title
|
|
Executive
Officer Since
|
Marc B. Lautenbach
|
|
51
|
|
President and Chief Executive Officer
|
|
2012
|
Leslie Abi-Karam
|
|
54
|
|
Executive Vice President and President, Pitney Bowes Communications Solutions
|
|
2005
|
Gregory E. Buoncontri
|
|
65
|
|
Executive Vice President and Chief Information Officer
|
|
2000
|
Daniel J. Goldstein
|
|
51
|
|
Executive Vice President and Chief Legal and Compliance Officer
|
|
2010
|
Michael Monahan
|
|
52
|
|
Executive Vice President and Chief Financial Officer
|
|
2005
|
John E. O'Hara
|
|
54
|
|
Executive Vice President and President, Pitney Bowes Software Solutions
|
|
2011
|
Vicki A. O'Meara
|
|
55
|
|
Executive Vice President and President, Pitney Bowes Services Solutions
|
|
2008
|
Joseph H. Timko
|
|
52
|
|
Executive Vice President and Chief Technology and Strategy Officer
|
|
2010
|
Johnna G. Torsone
|
|
62
|
|
Executive Vice President and Chief Human Resources Officer
|
|
1993
|
Plan Category
|
|
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
(b)
Weighted-average exercise price of outstanding options, warrants and rights
|
|
(c)
Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a)
|
|||
Equity compensation plans approved by security holders
|
|
15,760,550
|
|
|
$32.93
|
|
16,644,439
|
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
15,760,550
|
|
|
$32.93
|
|
16,644,439
|
|
(a)
|
1. Financial statements - see "Index to Consolidated Financial Statements and Supplemental Data" on
page 33
of this Form 10-K.
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Marc B. Lautenbach
Marc B. Lautenbach
|
|
President and Chief Executive Officer - Director
|
|
February 22, 2013
|
/s/ Michael Monahan
Michael Monahan
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
February 22, 2013
|
/s/ Steven J. Green
Steven J. Green
|
|
Vice President-Finance and Chief Accounting Officer (Principal Accounting Officer)
|
|
February 22, 2013
|
/s/ Michael I. Roth
Michael I. Roth
|
|
Non-Executive Chairman - Director
|
|
February 22, 2013
|
/s/ Rodney C. Adkins
Rodney C. Adkins
|
|
Director
|
|
February 22, 2013
|
/s/ Linda G. Alvarado
Linda G. Alvarado
|
|
Director
|
|
February 22, 2013
|
/s/ Anne M. Busquet
Anne M. Busquet
|
|
Director
|
|
February 22, 2013
|
/s/ Roger Fradin
Roger Fradin
|
|
Director
|
|
February 22, 2013
|
/s/ Anne Sutherland Fuchs
Anne Sutherland Fuchs
|
|
Director
|
|
February 22, 2013
|
/s/ S. Douglas Hutcheson
S. Douglas Hutcheson
|
|
Director
|
|
February 22, 2013
|
/s/ James H. Keyes
James H. Keyes
|
|
Director
|
|
February 22, 2013
|
/s/ Eduardo R. Menascé
Eduardo R. Menascé
|
|
Director
|
|
February 22, 2013
|
/s/ David L. Shedlarz
David L. Shedlarz
|
|
Director
|
|
February 22, 2013
|
/s/ David B. Snow, Jr.
David B. Snow, Jr.
|
|
Director
|
|
February 22, 2013
|
__________________
Robert E. Weissman
|
|
Director
|
|
February 22, 2013
|
|
|
Page Number
|
Consolidated Financial Statements of Pitney Bowes Inc.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Financial Statement Schedule
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Revenue:
|
|
|
|
|
|
|
|
||||
Equipment sales
|
$
|
938,289
|
|
|
$
|
986,392
|
|
|
$
|
1,022,563
|
|
Supplies
|
283,604
|
|
|
307,974
|
|
|
318,430
|
|
|||
Software
|
412,762
|
|
|
426,606
|
|
|
390,219
|
|
|||
Rentals
|
569,619
|
|
|
618,990
|
|
|
651,348
|
|
|||
Financing
|
495,130
|
|
|
547,269
|
|
|
587,359
|
|
|||
Support services
|
689,667
|
|
|
706,505
|
|
|
711,519
|
|
|||
Business services
|
1,514,944
|
|
|
1,528,860
|
|
|
1,578,918
|
|
|||
Total revenue
|
4,904,015
|
|
|
5,122,596
|
|
|
5,260,356
|
|
|||
Costs and expenses:
|
|
|
|
|
|
|
|
||||
Cost of equipment sales
|
459,051
|
|
|
449,479
|
|
|
469,158
|
|
|||
Cost of supplies
|
87,569
|
|
|
97,454
|
|
|
97,172
|
|
|||
Cost of software
|
92,708
|
|
|
99,107
|
|
|
93,391
|
|
|||
Cost of rentals
|
115,356
|
|
|
138,603
|
|
|
155,480
|
|
|||
Financing interest expense
|
81,140
|
|
|
87,698
|
|
|
88,292
|
|
|||
Cost of support services
|
440,055
|
|
|
452,582
|
|
|
451,609
|
|
|||
Cost of business services
|
1,156,828
|
|
|
1,161,429
|
|
|
1,173,418
|
|
|||
Selling, general and administrative
|
1,598,286
|
|
|
1,690,360
|
|
|
1,724,283
|
|
|||
Research and development
|
136,908
|
|
|
148,645
|
|
|
156,371
|
|
|||
Restructuring charges and asset impairments, net
|
23,117
|
|
|
136,548
|
|
|
181,961
|
|
|||
Goodwill impairment
|
—
|
|
|
84,500
|
|
|
—
|
|
|||
Other interest expense
|
115,228
|
|
|
115,363
|
|
|
115,619
|
|
|||
Interest income
|
(7,982
|
)
|
|
(5,795
|
)
|
|
(2,587
|
)
|
|||
Other expense (income), net
|
1,138
|
|
|
(19,918
|
)
|
|
—
|
|
|||
Total costs and expenses
|
4,299,402
|
|
|
4,636,055
|
|
|
4,704,167
|
|
|||
Income from continuing operations before income taxes
|
604,613
|
|
|
486,541
|
|
|
556,189
|
|
|||
Provision for income taxes
|
150,305
|
|
|
67,610
|
|
|
213,598
|
|
|||
Income from continuing operations
|
454,308
|
|
|
418,931
|
|
|
342,591
|
|
|||
Income (loss) from discontinued operations, net of tax
|
9,231
|
|
|
216,924
|
|
|
(31,888
|
)
|
|||
Net income before attribution of noncontrolling interests
|
463,539
|
|
|
635,855
|
|
|
310,703
|
|
|||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
18,376
|
|
|
18,375
|
|
|
18,324
|
|
|||
Net income - Pitney Bowes Inc.
|
$
|
445,163
|
|
|
$
|
617,480
|
|
|
$
|
292,379
|
|
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
||||
Net income from continuing operations
|
$
|
435,932
|
|
|
$
|
400,556
|
|
|
$
|
324,267
|
|
Income (loss) from discontinued operations, net of tax
|
9,231
|
|
|
216,924
|
|
|
(31,888
|
)
|
|||
Net income - Pitney Bowes Inc.
|
$
|
445,163
|
|
|
$
|
617,480
|
|
|
$
|
292,379
|
|
Basic earnings per share attributable to common stockholders (1):
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
2.18
|
|
|
$
|
1.98
|
|
|
$
|
1.57
|
|
Discontinued operations
|
0.05
|
|
|
1.07
|
|
|
(0.15
|
)
|
|||
Net income - Pitney Bowes Inc.
|
$
|
2.22
|
|
|
$
|
3.06
|
|
|
$
|
1.42
|
|
Diluted earnings per share attributable to common stockholders (1):
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
2.16
|
|
|
$
|
1.98
|
|
|
$
|
1.57
|
|
Discontinued operations
|
0.05
|
|
|
1.07
|
|
|
(0.15
|
)
|
|||
Net income - Pitney Bowes Inc.
|
$
|
2.21
|
|
|
$
|
3.05
|
|
|
$
|
1.41
|
|
(1)
|
The sum of the earnings per share amounts may not equal the totals due to rounding.
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
|
|
|
|
|
|
||||||
Net income - Pitney Bowes Inc.
|
$
|
445,163
|
|
|
$
|
617,480
|
|
|
$
|
292,379
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Foreign currency translations
|
(2,702
|
)
|
|
(53,569
|
)
|
|
(15,685
|
)
|
|||
Net unrealized gain on cash flow hedges, net of tax of $429, $1,278 and $837, respectively
|
661
|
|
|
2,007
|
|
|
1,293
|
|
|||
Net unrealized gain on investment securities, net of tax of $81, $1,885 and $505, respectively
|
126
|
|
|
2,948
|
|
|
790
|
|
|||
Adjustments to pension and postretirement plans, net of tax benefit of $(38,934), $(93,251) and $(17,183), respectively
|
(70,232
|
)
|
|
(173,699
|
)
|
|
(28,710
|
)
|
|||
Amortization of pension and postretirement costs, net of tax of $28,701, $19,601 and $16,028, respectively
|
52,579
|
|
|
34,474
|
|
|
28,298
|
|
|||
Other comprehensive loss
|
(19,568
|
)
|
|
(187,839
|
)
|
|
(14,014
|
)
|
|||
Comprehensive income - Pitney Bowes Inc.
|
425,595
|
|
|
429,641
|
|
|
278,365
|
|
|||
Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
18,376
|
|
|
18,375
|
|
|
18,324
|
|
|||
Total comprehensive income
|
$
|
443,971
|
|
|
$
|
448,016
|
|
|
$
|
296,689
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net income before attribution of noncontrolling interests
|
$
|
463,539
|
|
|
$
|
635,855
|
|
|
$
|
310,703
|
|
Restructuring payments
|
(74,718
|
)
|
|
(107,002
|
)
|
|
(119,565
|
)
|
|||
Special pension plan contributions
|
(95,000
|
)
|
|
(123,000
|
)
|
|
—
|
|
|||
Tax payments related to sale of leveraged lease assets
|
(114,128
|
)
|
|
—
|
|
|
—
|
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Restructuring charges and asset impairments
|
33,351
|
|
|
148,151
|
|
|
182,274
|
|
|||
Goodwill impairment
|
18,315
|
|
|
130,150
|
|
|
—
|
|
|||
Depreciation and amortization
|
255,556
|
|
|
272,142
|
|
|
303,653
|
|
|||
Gain on sale of leveraged lease assets, net of tax
|
(12,886
|
)
|
|
(26,689
|
)
|
|
—
|
|
|||
Stock-based compensation
|
18,227
|
|
|
18,692
|
|
|
20,111
|
|
|||
Proceeds from settlement of derivative instruments
|
—
|
|
|
—
|
|
|
31,774
|
|
|||
Deferred tax (benefit) provision
|
(92,999
|
)
|
|
34,358
|
|
|
(34,387
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||
(Increase) decrease in accounts receivable
|
(3,068
|
)
|
|
58,951
|
|
|
43,204
|
|
|||
(Increase) decrease in finance receivables
|
147,165
|
|
|
190,153
|
|
|
180,352
|
|
|||
(Increase) decrease in inventories
|
(599
|
)
|
|
(12,830
|
)
|
|
(11,913
|
)
|
|||
(Increase) decrease in other current assets and prepayments
|
(3,131
|
)
|
|
16,905
|
|
|
(8,658
|
)
|
|||
Increase (decrease) in accounts payable and accrued liabilities
|
(47,023
|
)
|
|
(13,086
|
)
|
|
28,766
|
|
|||
Increase (decrease) in current and non-current income taxes
|
116,013
|
|
|
(257,631
|
)
|
|
5,217
|
|
|||
Increase (decrease) in advance billings
|
3,767
|
|
|
(12,854
|
)
|
|
11,430
|
|
|||
Increase (decrease) in other operating capital, net
|
47,807
|
|
|
(3,278
|
)
|
|
9,150
|
|
|||
Net cash provided by operating activities
|
660,188
|
|
|
948,987
|
|
|
952,111
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Purchases of investment securities
|
(367,745
|
)
|
|
(406,114
|
)
|
|
(315,355
|
)
|
|||
Proceeds from sales/maturities of investment securities
|
352,124
|
|
|
309,534
|
|
|
192,891
|
|
|||
Capital expenditures
|
(176,586
|
)
|
|
(155,980
|
)
|
|
(119,768
|
)
|
|||
Proceeds from sale of leveraged lease assets
|
105,506
|
|
|
101,784
|
|
|
—
|
|
|||
Net investment in external financing
|
(1,667
|
)
|
|
(2,677
|
)
|
|
(4,718
|
)
|
|||
Reserve account deposits
|
1,636
|
|
|
35,354
|
|
|
10,399
|
|
|||
Proceeds from sale of facility
|
—
|
|
|
683
|
|
|
12,595
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(77,537
|
)
|
|||
Net cash used in investing activities
|
(86,732
|
)
|
|
(117,416
|
)
|
|
(301,493
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
340,000
|
|
|
—
|
|
|
—
|
|
|||
Principal payments of long-term obligations
|
(550,000
|
)
|
|
—
|
|
|
—
|
|
|||
Decrease in notes payable, net
|
—
|
|
|
(50,000
|
)
|
|
(170,794
|
)
|
|||
Proceeds from issuance of common stock
|
9,314
|
|
|
12,934
|
|
|
11,423
|
|
|||
Dividends paid to stockholders
|
(300,578
|
)
|
|
(299,579
|
)
|
|
(301,456
|
)
|
|||
Dividends paid to noncontrolling interests
|
(18,376
|
)
|
|
(18,375
|
)
|
|
(19,141
|
)
|
|||
Stock repurchases
|
—
|
|
|
(99,997
|
)
|
|
(100,000
|
)
|
|||
Net cash used in financing activities
|
(519,640
|
)
|
|
(455,017
|
)
|
|
(579,968
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
3,222
|
|
|
(4,679
|
)
|
|
976
|
|
|||
Increase in cash and cash equivalents
|
57,038
|
|
|
371,875
|
|
|
71,626
|
|
|||
Cash and cash equivalents at beginning of period
|
856,238
|
|
|
484,363
|
|
|
412,737
|
|
|||
Cash and cash equivalents at end of period
|
$
|
913,276
|
|
|
$
|
856,238
|
|
|
$
|
484,363
|
|
Cash interest paid
|
$
|
190,892
|
|
|
$
|
202,159
|
|
|
$
|
191,880
|
|
Cash income tax payments, net of refunds
|
$
|
206,285
|
|
|
$
|
44,528
|
|
|
$
|
231,550
|
|
|
Preferred
stock
|
|
Preference
stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained earnings
|
|
Accumulated other comprehensive loss
|
|
Treasury stock
|
|
Total equity
|
||||||||||||||||
Balance at December 31, 2009
|
$
|
4
|
|
|
$
|
868
|
|
|
$
|
323,338
|
|
|
$
|
256,133
|
|
|
$
|
4,291,393
|
|
|
$
|
(459,792
|
)
|
|
$
|
(4,415,096
|
)
|
|
$
|
(3,152
|
)
|
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
292,379
|
|
|
—
|
|
|
—
|
|
|
292,379
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,014
|
)
|
|
—
|
|
|
(14,014
|
)
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($1.46 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(301,391
|
)
|
|
—
|
|
|
—
|
|
|
(301,391
|
)
|
||||||||
Preference
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
||||||||
Issuances of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,039
|
)
|
|
—
|
|
|
—
|
|
|
33,249
|
|
|
9,210
|
|
||||||||
Conversions to common stock
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
(1,618
|
)
|
|
—
|
|
|
—
|
|
|
1,734
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
20,452
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,452
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,000
|
)
|
|
(100,000
|
)
|
||||||||
Balance at December 31, 2010
|
4
|
|
|
752
|
|
|
323,338
|
|
|
250,928
|
|
|
4,282,316
|
|
|
(473,806
|
)
|
|
(4,480,113
|
)
|
|
(96,581
|
)
|
||||||||
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
617,480
|
|
|
—
|
|
|
—
|
|
|
617,480
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(187,839
|
)
|
|
—
|
|
|
(187,839
|
)
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($1.48 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(299,521
|
)
|
|
—
|
|
|
—
|
|
|
(299,521
|
)
|
||||||||
Preference
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
||||||||
Issuances of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,283
|
)
|
|
—
|
|
|
—
|
|
|
35,865
|
|
|
8,582
|
|
||||||||
Conversions to common stock
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
(2,009
|
)
|
|
—
|
|
|
—
|
|
|
2,102
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
18,948
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,948
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99,997
|
)
|
|
(99,997
|
)
|
||||||||
Balance at December 31, 2011
|
4
|
|
|
659
|
|
|
323,338
|
|
|
240,584
|
|
|
4,600,217
|
|
|
(661,645
|
)
|
|
(4,542,143
|
)
|
|
(38,986
|
)
|
||||||||
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
445,163
|
|
|
—
|
|
|
—
|
|
|
445,163
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,568
|
)
|
|
—
|
|
|
(19,568
|
)
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($1.50 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(300,527
|
)
|
|
—
|
|
|
—
|
|
|
(300,527
|
)
|
||||||||
Preference
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
||||||||
Issuances of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,727
|
)
|
|
—
|
|
|
—
|
|
|
41,100
|
|
|
6,373
|
|
||||||||
Conversions to common stock
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
|
—
|
|
|
248
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
18,227
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,227
|
|
||||||||
Balance at December 31, 2012
|
$
|
4
|
|
|
$
|
648
|
|
|
$
|
323,338
|
|
|
$
|
223,847
|
|
|
$
|
4,744,802
|
|
|
$
|
(681,213
|
)
|
|
$
|
(4,500,795
|
)
|
|
$
|
110,631
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Raw materials and work in process
|
$
|
66,221
|
|
|
$
|
63,216
|
|
Supplies and service parts
|
72,551
|
|
|
68,600
|
|
||
Finished products
|
68,335
|
|
|
71,958
|
|
||
Inventory at FIFO cost
|
207,107
|
|
|
203,774
|
|
||
Excess of FIFO cost over LIFO cost
|
(27,429
|
)
|
|
(25,175
|
)
|
||
Total inventory, net
|
$
|
179,678
|
|
|
$
|
178,599
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Land
|
$
|
22,064
|
|
|
$
|
23,852
|
|
Buildings
|
349,061
|
|
|
335,625
|
|
||
Machinery and equipment
|
1,299,475
|
|
|
1,278,332
|
|
||
|
1,670,600
|
|
|
1,637,809
|
|
||
Accumulated depreciation
|
(1,285,223
|
)
|
|
(1,233,663
|
)
|
||
Property, plant and equipment, net
|
$
|
385,377
|
|
|
$
|
404,146
|
|
|
|
|
|
||||
Rental property and equipment
|
$
|
580,243
|
|
|
$
|
649,343
|
|
Accumulated depreciation
|
(339,051
|
)
|
|
(390,632
|
)
|
||
Rental property and equipment, net
|
$
|
241,192
|
|
|
$
|
258,711
|
|
|
December 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||
|
North America
|
|
International
|
|
Total
|
|
North America
|
|
International
|
|
Total
|
||||||||||||
Sales-type lease receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross finance receivables
|
$
|
1,581,711
|
|
|
$
|
461,510
|
|
|
$
|
2,043,221
|
|
|
$
|
1,727,653
|
|
|
$
|
460,101
|
|
|
$
|
2,187,754
|
|
Unguaranteed residual values
|
148,664
|
|
|
21,025
|
|
|
169,689
|
|
|
185,450
|
|
|
20,443
|
|
|
205,893
|
|
||||||
Unearned income
|
(316,030
|
)
|
|
(104,258
|
)
|
|
(420,288
|
)
|
|
(348,286
|
)
|
|
(102,618
|
)
|
|
(450,904
|
)
|
||||||
Allowance for credit losses
|
(16,979
|
)
|
|
(8,662
|
)
|
|
(25,641
|
)
|
|
(28,661
|
)
|
|
(12,039
|
)
|
|
(40,700
|
)
|
||||||
Net investment in sales-type lease receivables
|
1,397,366
|
|
|
369,615
|
|
|
1,766,981
|
|
|
1,536,156
|
|
|
365,887
|
|
|
1,902,043
|
|
||||||
Loan receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loan receivables
|
414,960
|
|
|
47,293
|
|
|
462,253
|
|
|
436,631
|
|
|
40,937
|
|
|
477,568
|
|
||||||
Allowance for credit losses
|
(12,322
|
)
|
|
(2,131
|
)
|
|
(14,453
|
)
|
|
(20,272
|
)
|
|
(2,458
|
)
|
|
(22,730
|
)
|
||||||
Net investment in loan receivables
|
402,638
|
|
|
45,162
|
|
|
447,800
|
|
|
416,359
|
|
|
38,479
|
|
|
454,838
|
|
||||||
Net investment in finance receivables
|
$
|
1,800,004
|
|
|
$
|
414,777
|
|
|
$
|
2,214,781
|
|
|
$
|
1,952,515
|
|
|
$
|
404,366
|
|
|
$
|
2,356,881
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
Balance at December 31, 2009
|
$
|
31,005
|
|
|
$
|
13,077
|
|
|
$
|
25,839
|
|
|
$
|
2,237
|
|
|
$
|
72,158
|
|
Amounts charged to expense
|
13,211
|
|
|
6,719
|
|
|
20,046
|
|
|
2,024
|
|
|
42,000
|
|
|||||
Accounts written off
|
(16,424
|
)
|
|
(6,478
|
)
|
|
(19,677
|
)
|
|
(2,149
|
)
|
|
(44,728
|
)
|
|||||
Balance at December 31, 2010
|
27,792
|
|
|
13,318
|
|
|
26,208
|
|
|
2,112
|
|
|
69,430
|
|
|||||
Amounts charged to expense
|
13,726
|
|
|
5,087
|
|
|
7,631
|
|
|
1,610
|
|
|
28,054
|
|
|||||
Accounts written off
|
(12,857
|
)
|
|
(6,366
|
)
|
|
(13,567
|
)
|
|
(1,264
|
)
|
|
(34,054
|
)
|
|||||
Balance at December 31, 2011
|
28,661
|
|
|
12,039
|
|
|
20,272
|
|
|
2,458
|
|
|
63,430
|
|
|||||
Amounts charged to expense
|
2,276
|
|
|
994
|
|
|
3,278
|
|
|
903
|
|
|
7,451
|
|
|||||
Accounts written off
|
(13,958
|
)
|
|
(4,371
|
)
|
|
(11,228
|
)
|
|
(1,230
|
)
|
|
(30,787
|
)
|
|||||
Balance at December 31, 2012
|
$
|
16,979
|
|
|
$
|
8,662
|
|
|
$
|
12,322
|
|
|
$
|
2,131
|
|
|
$
|
40,094
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
< 31 days
|
$
|
1,497,797
|
|
|
$
|
435,780
|
|
|
$
|
392,108
|
|
|
$
|
45,324
|
|
|
$
|
2,371,009
|
|
> 30 days and < 61 days
|
37,348
|
|
|
9,994
|
|
|
12,666
|
|
|
1,368
|
|
|
61,376
|
|
|||||
> 60 days and < 91 days
|
24,059
|
|
|
5,198
|
|
|
4,577
|
|
|
285
|
|
|
34,119
|
|
|||||
> 90 days and < 121 days
|
6,665
|
|
|
3,327
|
|
|
2,319
|
|
|
179
|
|
|
12,490
|
|
|||||
> 120 days
|
15,842
|
|
|
7,211
|
|
|
3,290
|
|
|
137
|
|
|
26,480
|
|
|||||
Total
|
$
|
1,581,711
|
|
|
$
|
461,510
|
|
|
$
|
414,960
|
|
|
$
|
47,293
|
|
|
$
|
2,505,474
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
6,665
|
|
|
$
|
3,327
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,992
|
|
Not accruing interest
|
15,842
|
|
|
7,211
|
|
|
5,609
|
|
|
316
|
|
|
28,978
|
|
|||||
Total
|
$
|
22,507
|
|
|
$
|
10,538
|
|
|
$
|
5,609
|
|
|
$
|
316
|
|
|
$
|
38,970
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
< 31 days
|
$
|
1,641,706
|
|
|
$
|
434,811
|
|
|
$
|
414,434
|
|
|
$
|
38,841
|
|
|
$
|
2,529,792
|
|
> 30 days and < 61 days
|
41,018
|
|
|
10,152
|
|
|
12,399
|
|
|
1,066
|
|
|
64,635
|
|
|||||
> 60 days and < 91 days
|
24,309
|
|
|
5,666
|
|
|
4,362
|
|
|
425
|
|
|
34,762
|
|
|||||
> 90 days and < 121 days
|
4,912
|
|
|
3,207
|
|
|
2,328
|
|
|
186
|
|
|
10,633
|
|
|||||
> 120 days
|
15,708
|
|
|
6,265
|
|
|
3,108
|
|
|
419
|
|
|
25,500
|
|
|||||
Total
|
$
|
1,727,653
|
|
|
$
|
460,101
|
|
|
$
|
436,631
|
|
|
$
|
40,937
|
|
|
$
|
2,665,322
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
4,912
|
|
|
$
|
3,207
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,119
|
|
Not accruing interest
|
15,708
|
|
|
6,265
|
|
|
5,436
|
|
|
605
|
|
|
28,014
|
|
|||||
Total
|
$
|
20,620
|
|
|
$
|
9,472
|
|
|
$
|
5,436
|
|
|
$
|
605
|
|
|
$
|
36,133
|
|
•
|
Low risk accounts are companies with very good credit scores and are considered to approximate the top
30%
of all commercial borrowers.
|
•
|
Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle
40%
of all commercial borrowers.
|
•
|
High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom
30%
of all commercial borrowers.
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Sales-type lease receivables
|
|
|
|
|
|
||
Risk Level
|
|
|
|
|
|
||
Low
|
$
|
1,016,413
|
|
|
$
|
1,096,676
|
|
Medium
|
450,432
|
|
|
473,394
|
|
||
High
|
43,658
|
|
|
58,177
|
|
||
Not Scored
|
71,208
|
|
|
99,406
|
|
||
Total
|
$
|
1,581,711
|
|
|
$
|
1,727,653
|
|
Loan receivables
|
|
|
|
|
|
||
Risk Level
|
|
|
|
|
|
||
Low
|
$
|
254,567
|
|
|
$
|
269,547
|
|
Medium
|
136,069
|
|
|
115,490
|
|
||
High
|
14,624
|
|
|
21,081
|
|
||
Not Scored
|
9,700
|
|
|
30,513
|
|
||
Total
|
$
|
414,960
|
|
|
$
|
436,631
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Rental receivables
|
$
|
83,254
|
|
|
$
|
810,306
|
|
Unguaranteed residual values
|
14,177
|
|
|
13,784
|
|
||
Principal and interest on non-recourse loans
|
(55,092
|
)
|
|
(606,708
|
)
|
||
Unearned income
|
(7,793
|
)
|
|
(79,111
|
)
|
||
Investment in leveraged leases
|
34,546
|
|
|
138,271
|
|
||
Less: deferred taxes related to leveraged leases
|
(19,372
|
)
|
|
(101,255
|
)
|
||
Net investment in leveraged leases
|
$
|
15,174
|
|
|
$
|
37,016
|
|
|
December 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Customer relationships
|
$
|
407,901
|
|
|
$
|
(269,100
|
)
|
|
$
|
138,801
|
|
|
$
|
409,489
|
|
|
$
|
(237,536
|
)
|
|
$
|
171,953
|
|
Supplier relationships
|
29,000
|
|
|
(22,113
|
)
|
|
6,887
|
|
|
29,000
|
|
|
(19,213
|
)
|
|
9,787
|
|
||||||
Software & technology
|
169,632
|
|
|
(151,628
|
)
|
|
18,004
|
|
|
170,286
|
|
|
(143,456
|
)
|
|
26,830
|
|
||||||
Trademarks & trade names
|
35,078
|
|
|
(32,615
|
)
|
|
2,463
|
|
|
33,908
|
|
|
(30,076
|
)
|
|
3,832
|
|
||||||
Non-compete agreements
|
7,471
|
|
|
(7,412
|
)
|
|
59
|
|
|
7,564
|
|
|
(7,363
|
)
|
|
201
|
|
||||||
Total intangible assets
|
$
|
649,082
|
|
|
$
|
(482,868
|
)
|
|
$
|
166,214
|
|
|
$
|
650,247
|
|
|
$
|
(437,644
|
)
|
|
$
|
212,603
|
|
|
Gross value before accumulated impairment
|
|
Accumulated impairment
|
|
December 31, 2011
|
|
Impairment
|
|
Other
(2)
|
|
December 31, 2012
|
||||||||||||
North America Mailing
|
$
|
352,897
|
|
|
$
|
—
|
|
|
$
|
352,897
|
|
|
$
|
—
|
|
|
$
|
2,977
|
|
|
$
|
355,874
|
|
International Mailing
|
176,285
|
|
|
—
|
|
|
176,285
|
|
|
—
|
|
|
(5,158
|
)
|
|
171,127
|
|
||||||
Small & Medium Business Solutions
|
529,182
|
|
|
—
|
|
|
529,182
|
|
|
—
|
|
|
(2,181
|
)
|
|
527,001
|
|
||||||
Production Mail
|
140,371
|
|
|
—
|
|
|
140,371
|
|
|
—
|
|
|
4,276
|
|
|
144,647
|
|
||||||
Software
|
667,124
|
|
|
—
|
|
|
667,124
|
|
|
—
|
|
|
4,094
|
|
|
671,218
|
|
||||||
Management Services
|
487,223
|
|
|
(84,500
|
)
|
|
402,723
|
|
|
—
|
|
|
1,176
|
|
|
403,899
|
|
||||||
Mail Services
(1)
|
259,105
|
|
|
(45,650
|
)
|
|
213,455
|
|
|
(18,315
|
)
|
|
—
|
|
|
195,140
|
|
||||||
Marketing Services
|
194,233
|
|
|
—
|
|
|
194,233
|
|
|
—
|
|
|
—
|
|
|
194,233
|
|
||||||
Enterprise Business Solutions
|
1,748,056
|
|
|
(130,150
|
)
|
|
1,617,906
|
|
|
(18,315
|
)
|
|
9,546
|
|
|
1,609,137
|
|
||||||
Total
|
$
|
2,277,238
|
|
|
$
|
(130,150
|
)
|
|
$
|
2,147,088
|
|
|
$
|
(18,315
|
)
|
|
$
|
7,365
|
|
|
$
|
2,136,138
|
|
|
Gross value before accumulated impairment
|
|
Accumulated impairment
|
|
December 31, 2010
|
|
Impairment
|
|
Other
(2)
|
|
December 31, 2011
|
||||||||||||
North America Mailing
|
$
|
357,909
|
|
|
$
|
—
|
|
|
$
|
357,909
|
|
|
$
|
—
|
|
|
$
|
(5,012
|
)
|
|
$
|
352,897
|
|
International Mailing
|
193,761
|
|
|
—
|
|
|
193,761
|
|
|
—
|
|
|
(17,476
|
)
|
|
176,285
|
|
||||||
Small & Medium Business Solutions
|
551,670
|
|
|
—
|
|
|
551,670
|
|
|
—
|
|
|
(22,488
|
)
|
|
529,182
|
|
||||||
Production Mail
|
129,246
|
|
|
—
|
|
|
129,246
|
|
|
—
|
|
|
11,125
|
|
|
140,371
|
|
||||||
Software
|
678,111
|
|
|
—
|
|
|
678,111
|
|
|
—
|
|
|
(10,987
|
)
|
|
667,124
|
|
||||||
Management Services
|
494,432
|
|
|
—
|
|
|
494,432
|
|
|
(84,500
|
)
|
|
(7,209
|
)
|
|
402,723
|
|
||||||
Mail Services
(1)
|
259,101
|
|
|
—
|
|
|
259,101
|
|
|
(45,650
|
)
|
|
4
|
|
|
213,455
|
|
||||||
Marketing Services
|
194,233
|
|
|
—
|
|
|
194,233
|
|
|
—
|
|
|
—
|
|
|
194,233
|
|
||||||
Enterprise Business Solutions
|
1,755,123
|
|
|
—
|
|
|
1,755,123
|
|
|
(130,150
|
)
|
|
(7,067
|
)
|
|
1,617,906
|
|
||||||
Total
|
$
|
2,306,793
|
|
|
$
|
—
|
|
|
$
|
2,306,793
|
|
|
$
|
(130,150
|
)
|
|
$
|
(29,555
|
)
|
|
$
|
2,147,088
|
|
(1)
|
Impairment charges for the Mail Services segment relate to IMS and have been classified as discontinued operations in the Consolidated Statements of Income. See Note 18.
|
(2)
|
Primarily foreign currency translation adjustments for the period.
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Accounts payable
|
$
|
361,169
|
|
|
$
|
334,036
|
|
Customer deposits
|
698,770
|
|
|
684,469
|
|
||
Employee related liabilities
|
356,188
|
|
|
330,492
|
|
||
Miscellaneous other
|
393,099
|
|
|
491,468
|
|
||
Accounts payable and accrued liabilities
|
$
|
1,809,226
|
|
|
$
|
1,840,465
|
|
|
|
December 31,
|
||||||
|
|
2012
|
|
2011
|
||||
Term loans
|
$
|
230,000
|
|
|
$
|
150,000
|
|
|
4.625%
|
notes due 2012
|
—
|
|
|
400,000
|
|
||
3.875%
|
notes due 2013
|
375,000
|
|
|
375,000
|
|
||
4.875%
|
notes due 2014
(1)
|
450,000
|
|
|
450,000
|
|
||
5.00%
|
notes due 2015
|
400,000
|
|
|
400,000
|
|
||
4.75%
|
notes due 2016
|
500,000
|
|
|
500,000
|
|
||
5.75%
|
notes due 2017
|
500,000
|
|
|
500,000
|
|
||
4.75%
|
notes due 2018
|
350,000
|
|
|
350,000
|
|
||
5.60%
|
notes due 2018
|
250,000
|
|
|
250,000
|
|
||
6.25%
|
notes due 2019
|
300,000
|
|
|
300,000
|
|
||
5.25%
|
notes due 2022
(2)
|
110,000
|
|
|
—
|
|
||
5.25%
|
notes due 2037
(3)
|
500,000
|
|
|
500,000
|
|
||
Other
(4)
|
52,375
|
|
|
58,909
|
|
|||
Total debt
|
4,017,375
|
|
|
4,233,909
|
|
|||
Current portion long-term debt
|
375,000
|
|
|
550,000
|
|
|||
Long-term debt
|
$
|
3,642,375
|
|
|
$
|
3,683,909
|
|
(1)
|
We have interest rate swap agreements with an aggregate notional value of
$450 million
that effectively convert the fixed rate interest payments on this debt issue into variable interest rates. We pay a weighted-average variable rate based on
three-month LIBOR
plus
305
basis points and receive a fixed rate of
4.875%
. The weighted-average rate paid during
2012
and
2011
was
3.5%
.
|
(2)
|
In November 2012, we issued
$110 million
of 10-year notes with a coupon rate of
5.25%
. Interest is paid quarterly beginning February 2013. The notes mature on November 27, 2022; however, we may redeem some or all of the notes at anytime on or after November 27, 2015 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. The proceeds from the notes will be used for general corporate purposes, including the repayment of 2013 debt maturities.
|
(3)
|
Under the terms of these notes, in January 2017, bondholders may redeem the notes, in whole or in part, at par plus accrued interest.
|
(4)
|
Other consists of the unamortized net proceeds received from unwinding of interest rate swaps, the mark-to-market adjustment of interest rate swaps and debt discounts and premiums.
|
2013
|
$
|
375,000
|
|
2014
|
450,000
|
|
|
2015
|
450,000
|
|
|
2016
|
680,000
|
|
|
2017
|
500,000
|
|
|
Thereafter
|
1,510,000
|
|
|
Total
|
$
|
3,965,000
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
U.S. Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
174,705
|
|
|
$
|
(68,505
|
)
|
|
$
|
175,827
|
|
Deferred
|
16,136
|
|
|
135,305
|
|
|
(24,632
|
)
|
|||
|
190,841
|
|
|
66,800
|
|
|
151,195
|
|
|||
U.S. State and Local:
|
|
|
|
|
|
||||||
Current
|
3,187
|
|
|
33,922
|
|
|
27,169
|
|
|||
Deferred
|
(26,273
|
)
|
|
(15,546
|
)
|
|
(17,518
|
)
|
|||
|
(23,086
|
)
|
|
18,376
|
|
|
9,651
|
|
|||
International:
|
|
|
|
|
|
||||||
Current
|
65,412
|
|
|
67,835
|
|
|
44,989
|
|
|||
Deferred
|
(82,862
|
)
|
|
(85,401
|
)
|
|
7,763
|
|
|||
|
(17,450
|
)
|
|
(17,566
|
)
|
|
52,752
|
|
|||
|
|
|
|
|
|
||||||
Total current
|
243,304
|
|
|
33,252
|
|
|
247,985
|
|
|||
Total deferred
|
(92,999
|
)
|
|
34,358
|
|
|
(34,387
|
)
|
|||
Total provision for income taxes
|
$
|
150,305
|
|
|
$
|
67,610
|
|
|
$
|
213,598
|
|
|
|
|
|
|
|
||||||
Effective tax rate
|
24.9
|
%
|
|
13.9
|
%
|
|
38.4
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Federal statutory provision
|
$
|
211,614
|
|
|
$
|
170,289
|
|
|
$
|
194,668
|
|
State and local income taxes
|
1,694
|
|
|
16,327
|
|
|
14,729
|
|
|||
Impact of non-U.S. leveraged lease asset sales
|
(30,367
|
)
|
|
(31,423
|
)
|
|
—
|
|
|||
Other impact of foreign operations
|
22,699
|
|
|
16,388
|
|
|
13,556
|
|
|||
Tax exempt income/reimbursement
|
(1,992
|
)
|
|
(2,674
|
)
|
|
(2,352
|
)
|
|||
Federal income tax credits/incentives
|
(8,918
|
)
|
|
(10,741
|
)
|
|
(7,580
|
)
|
|||
Unrealized stock compensation benefits
|
3,456
|
|
|
3,538
|
|
|
15,149
|
|
|||
Resolution of U.S. tax examinations
|
(47,380
|
)
|
|
(94,225
|
)
|
|
(8,230
|
)
|
|||
U.S. health care reform tax change
|
—
|
|
|
—
|
|
|
9,070
|
|
|||
Outside basis differences
|
—
|
|
|
—
|
|
|
(15,798
|
)
|
|||
Other, net
|
(501
|
)
|
|
131
|
|
|
386
|
|
|||
Provision for income taxes
|
$
|
150,305
|
|
|
$
|
67,610
|
|
|
$
|
213,598
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Depreciation
|
$
|
(65,205
|
)
|
|
$
|
(69,092
|
)
|
Deferred profit (for tax purposes) on sale to finance subsidiary
|
(157,279
|
)
|
|
(157,397
|
)
|
||
Lease revenue and related depreciation
|
(306,612
|
)
|
|
(422,541
|
)
|
||
Amortizable intangibles
|
(104,156
|
)
|
|
(99,980
|
)
|
||
Other
|
(35,157
|
)
|
|
(49,044
|
)
|
||
Deferred tax liabilities
|
(668,409
|
)
|
|
(798,054
|
)
|
||
|
|
|
|
||||
Deferred tax assets:
|
|
|
|
||||
Nonpension postretirement benefits
|
119,002
|
|
|
198,379
|
|
||
Pension
|
117,509
|
|
|
40,956
|
|
||
Inventory and equipment capitalization
|
26,778
|
|
|
24,806
|
|
||
Restructuring charges
|
20,793
|
|
|
8,185
|
|
||
Long-term incentives
|
35,056
|
|
|
37,019
|
|
||
Net operating loss and tax credit carry forwards
|
194,134
|
|
|
180,281
|
|
||
Tax uncertainties gross-up
|
28,492
|
|
|
46,773
|
|
||
Other
|
89,406
|
|
|
99,996
|
|
||
Valuation allowance
|
(142,176
|
)
|
|
(111,438
|
)
|
||
Deferred tax assets
|
488,994
|
|
|
524,957
|
|
||
|
|
|
|
||||
Total deferred taxes, net
|
$
|
(179,415
|
)
|
|
$
|
(273,097
|
)
|
|
2012
|
|
2011
|
|
2010
|
||||||
Balance at beginning of year
|
$
|
198,635
|
|
|
$
|
531,790
|
|
|
$
|
515,565
|
|
Increases from prior period positions
|
11,811
|
|
|
67,065
|
|
|
17,775
|
|
|||
Decreases from prior period positions
|
(17,985
|
)
|
|
(140,107
|
)
|
|
(27,669
|
)
|
|||
Increases from current period positions
|
28,255
|
|
|
28,686
|
|
|
43,804
|
|
|||
Decreases from current period positions
|
—
|
|
|
—
|
|
|
(8,689
|
)
|
|||
Decreases relating to settlements with tax authorities
|
(1,948
|
)
|
|
(18,204
|
)
|
|
(1,434
|
)
|
|||
Reductions from lapse of applicable statute of limitations
|
(71,863
|
)
|
|
(270,595
|
)
|
|
(7,562
|
)
|
|||
Balance at end of year
|
$
|
146,905
|
|
|
$
|
198,635
|
|
|
$
|
531,790
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Foreign currency translation adjustments
|
$
|
81,250
|
|
|
$
|
83,952
|
|
|
$
|
137,521
|
|
Net unrealized loss on derivatives
|
(7,777
|
)
|
|
(8,438
|
)
|
|
(10,445
|
)
|
|||
Net unrealized gain on investment securities
|
4,513
|
|
|
4,387
|
|
|
1,439
|
|
|||
Net unamortized loss on pension and postretirement plans
|
(759,199
|
)
|
|
(741,546
|
)
|
|
(602,321
|
)
|
|||
Accumulated other comprehensive loss
|
$
|
(681,213
|
)
|
|
$
|
(661,645
|
)
|
|
$
|
(473,806
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cost of equipment sales
|
$
|
1,212
|
|
|
$
|
1,292
|
|
|
$
|
1,397
|
|
Cost of support services
|
522
|
|
|
557
|
|
|
602
|
|
|||
Cost of business services
|
721
|
|
|
770
|
|
|
831
|
|
|||
Selling, general and administrative
|
15,176
|
|
|
15,689
|
|
|
16,936
|
|
|||
Research and development
|
596
|
|
|
640
|
|
|
686
|
|
|||
Stock-based compensation expense
|
18,227
|
|
|
18,948
|
|
|
20,452
|
|
|||
Income tax
|
(6,061
|
)
|
|
(6,170
|
)
|
|
(7,265
|
)
|
|||
Stock-based compensation expense, net of tax
|
$
|
12,166
|
|
|
$
|
12,778
|
|
|
$
|
13,187
|
|
|
2012
|
|
2011
|
||||||||||
|
Shares
|
|
Weighted average grant date fair value
|
|
Shares
|
|
Weighted average grant date fair value
|
||||||
Restricted stock units outstanding at beginning of year
|
1,629,055
|
|
|
$
|
22.33
|
|
|
1,637,242
|
|
|
$
|
25.55
|
|
Granted
|
999,381
|
|
|
14.72
|
|
|
662,049
|
|
|
22.44
|
|
||
Vested
|
(598,543
|
)
|
|
22.27
|
|
|
(543,688
|
)
|
|
26.89
|
|
||
Forfeited
|
(120,733
|
)
|
|
18.75
|
|
|
(126,548
|
)
|
|
23.12
|
|
||
Restricted stock units outstanding at end of year
|
1,909,160
|
|
|
$
|
17.68
|
|
|
1,629,055
|
|
|
$
|
22.33
|
|
|
Shares
|
|
Weighted average grant date fair value
|
|||
Market stock units outstanding at January 1, 2012
|
—
|
|
|
$
|
—
|
|
Granted
|
205,013
|
|
|
17.91
|
|
|
Forfeited
|
(6,868
|
)
|
|
17.91
|
|
|
Market stock units outstanding at December 31, 2012
|
198,145
|
|
|
$
|
17.91
|
|
|
Year Ended December 31, 2012
|
|
Expected dividend yield
|
6.7
|
%
|
Expected stock price volatility
|
29.7
|
%
|
Risk-free interest rate
|
0.4
|
%
|
|
2012
|
|
2011
|
||||||||||
|
Shares
|
|
Per share weighted average exercise prices
|
|
Shares
|
|
Per share weighted average exercise prices
|
||||||
Options outstanding at beginning of the year
|
14,471,464
|
|
|
$
|
36.42
|
|
|
14,506,522
|
|
|
$
|
37.38
|
|
Granted
|
600,000
|
|
|
15.71
|
|
|
1,312,910
|
|
|
26.07
|
|
||
Exercised
|
—
|
|
|
—
|
|
|
(55,484
|
)
|
|
25.15
|
|
||
Canceled
|
(525,361
|
)
|
|
36.15
|
|
|
(1,266,537
|
)
|
|
37.61
|
|
||
Forfeited
|
(892,858
|
)
|
|
40.20
|
|
|
(25,947
|
)
|
|
27.27
|
|
||
Options outstanding at the end of the year
|
13,653,245
|
|
|
$
|
35.28
|
|
|
14,471,464
|
|
|
$
|
36.42
|
|
Options exercisable at the end of the year
|
11,762,341
|
|
|
$
|
37.44
|
|
|
11,478,630
|
|
|
$
|
39.13
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||||||
Range of per share exercise prices
|
|
Shares
|
|
Per share weighted-average exercise price
|
|
Weighted-average remaining contractual life
|
|
Shares
|
|
Per share weighted-average exercise price
|
|
Weighted-average remaining contractual life
|
||||||||
$13.39 - $22.99
|
|
1,959,735
|
|
|
$
|
20.14
|
|
|
8.0
|
years
|
|
906,744
|
|
|
$
|
22.09
|
|
|
7.1
|
years
|
$23.00 - $30.99
|
|
2,471,949
|
|
|
25.42
|
|
|
7.1
|
years
|
|
1,634,036
|
|
|
25.09
|
|
|
6.6
|
years
|
||
$31.00 - $38.99
|
|
2,962,324
|
|
|
34.73
|
|
|
2.8
|
years
|
|
2,962,324
|
|
|
34.73
|
|
|
2.8
|
years
|
||
$39.00 - $48.03
|
|
6,259,237
|
|
|
44.17
|
|
|
2.4
|
years
|
|
6,259,237
|
|
|
44.17
|
|
|
2.4
|
years
|
||
|
|
13,653,245
|
|
|
$
|
35.28
|
|
|
4.2
|
years
|
|
11,762,341
|
|
|
$
|
37.44
|
|
|
3.5
|
years
|
|
Years Ended December 31,
|
|||||||
|
2012
|
|
2011
|
|
2010
|
|||
Expected dividend yield
|
9.3
|
%
|
|
6.1
|
%
|
|
6.1
|
%
|
Expected stock price volatility
|
30.0
|
%
|
|
26.1
|
%
|
|
25.6
|
%
|
Risk-free interest rate
|
1.2
|
%
|
|
3.3
|
%
|
|
3.2
|
%
|
Expected life
|
7.9
|
years
|
|
7.4
|
years
|
|
7.3
|
years
|
Weighted-average fair value per option granted
|
$0.48
|
|
$3.45
|
|
$2.82
|
|
December 31, 2012
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds / commercial paper
|
$
|
581,648
|
|
|
$
|
34,369
|
|
|
$
|
—
|
|
|
$
|
616,017
|
|
Equity securities
|
—
|
|
|
25,106
|
|
|
—
|
|
|
25,106
|
|
||||
Commingled fixed income securities
|
—
|
|
|
29,359
|
|
|
—
|
|
|
29,359
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
124,221
|
|
|
18,908
|
|
|
—
|
|
|
143,129
|
|
||||
Debt securities - corporate
|
—
|
|
|
43,926
|
|
|
—
|
|
|
43,926
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
162,375
|
|
|
—
|
|
|
162,375
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
—
|
|
|
10,117
|
|
|
—
|
|
|
10,117
|
|
||||
Foreign exchange contracts
|
—
|
|
|
2,582
|
|
|
—
|
|
|
2,582
|
|
||||
Total assets
|
$
|
705,869
|
|
|
$
|
326,742
|
|
|
$
|
—
|
|
|
$
|
1,032,611
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(1,174
|
)
|
|
$
|
—
|
|
|
$
|
(1,174
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(1,174
|
)
|
|
$
|
—
|
|
|
$
|
(1,174
|
)
|
|
December 31, 2011
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds / commercial paper
|
$
|
239,157
|
|
|
$
|
300,702
|
|
|
$
|
—
|
|
|
$
|
539,859
|
|
Equity securities
|
—
|
|
|
22,097
|
|
|
—
|
|
|
22,097
|
|
||||
Commingled fixed income securities
|
—
|
|
|
27,747
|
|
|
—
|
|
|
27,747
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
93,175
|
|
|
19,042
|
|
|
—
|
|
|
112,217
|
|
||||
Debt securities - corporate
|
—
|
|
|
31,467
|
|
|
—
|
|
|
31,467
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
134,262
|
|
|
—
|
|
|
134,262
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
—
|
|
|
15,465
|
|
|
—
|
|
|
15,465
|
|
||||
Foreign exchange contracts
|
—
|
|
|
4,230
|
|
|
—
|
|
|
4,230
|
|
||||
Total assets
|
$
|
332,332
|
|
|
$
|
555,012
|
|
|
$
|
—
|
|
|
$
|
887,344
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(1,439
|
)
|
|
$
|
—
|
|
|
$
|
(1,439
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(1,439
|
)
|
|
$
|
—
|
|
|
$
|
(1,439
|
)
|
•
|
Money Market Funds / Commercial Paper:
Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low-risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2.
|
•
|
Equity Securities:
Equity securities are comprised of mutual funds investing in U.S. and foreign common stock. These mutual funds are classified as Level 2 as they are not separately listed on an exchange.
|
•
|
Commingled Fixed Income Securities:
Mutual funds that invest in a variety of fixed income securities including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. The value of the funds is based on the market value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These commingled funds are not listed on an exchange in an active market and are classified as Level 2.
|
•
|
Debt Securities – U.S. and Foreign Governments, Agencies and Municipalities:
Debt securities are classified as Level 1 where active, high volume trades for identical securities exist. Valuation adjustments are not applied to these securities. Debt securities valued using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities are classified as Level 2.
|
•
|
Debt Securities – Corporate:
Corporate debt securities are valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2.
|
•
|
Mortgage-Backed Securities (MBS) / Asset-Backed Securities (ABS):
These securities are valued based on external pricing indices. When external index pricing is not observable, MBS and ABS are valued based on external price/spread data. These securities are classified as Level 2.
|
|
December 31, 2012
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
Money market funds / commercial paper
|
$
|
44,611
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
44,664
|
|
U.S. and foreign governments, agencies and municipalities
|
127,807
|
|
|
3,972
|
|
|
(56
|
)
|
|
131,723
|
|
||||
Corporate
|
41,095
|
|
|
2,851
|
|
|
(20
|
)
|
|
43,926
|
|
||||
Mortgage-back / asset-back securities
|
162,180
|
|
|
3,340
|
|
|
(3,145
|
)
|
|
162,375
|
|
||||
Total
|
$
|
375,693
|
|
|
$
|
10,216
|
|
|
$
|
(3,221
|
)
|
|
$
|
382,688
|
|
|
December 31, 2011
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
Money market funds / commercial paper
|
$
|
25,253
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
25,296
|
|
U.S. and foreign governments, agencies and municipalities
|
93,995
|
|
|
4,264
|
|
|
(8
|
)
|
|
98,251
|
|
||||
Corporate
|
31,114
|
|
|
935
|
|
|
(582
|
)
|
|
31,467
|
|
||||
Mortgage-back / asset-back securities
|
131,982
|
|
|
3,303
|
|
|
(1,023
|
)
|
|
134,262
|
|
||||
Total
|
$
|
282,344
|
|
|
$
|
8,545
|
|
|
$
|
(1,613
|
)
|
|
$
|
289,276
|
|
|
Amortized cost
|
|
Estimated fair value
|
||||
Within 1 year
|
$
|
86,867
|
|
|
$
|
87,014
|
|
After 1 year through 5 years
|
56,732
|
|
|
58,117
|
|
||
After 5 years through 10 years
|
65,019
|
|
|
65,869
|
|
||
After 10 years
|
167,075
|
|
|
171,688
|
|
||
Total
|
$
|
375,693
|
|
|
$
|
382,688
|
|
|
|
|
|
December 31,
|
||||||
Designation of Derivatives
|
|
Balance Sheet Location
|
|
2012
|
|
2011
|
||||
Derivatives designated as
hedging instruments
|
|
Other current assets and prepayments:
|
|
|
|
|
|
|
||
|
|
Foreign exchange contracts
|
|
$
|
78
|
|
|
$
|
780
|
|
|
|
Other assets:
|
|
|
|
|
|
|
||
|
|
Interest rate swaps
|
|
10,117
|
|
|
15,465
|
|
||
|
|
Accounts payable and accrued liabilities:
|
|
|
|
|
|
|
||
|
|
Foreign exchange contracts
|
|
(320
|
)
|
|
(79
|
)
|
||
Derivatives not designated as
hedging instruments
|
|
Other current assets and prepayments:
|
|
|
|
|
|
|
||
|
|
Foreign exchange contracts
|
|
2,504
|
|
|
3,450
|
|
||
|
|
Accounts payable and accrued liabilities:
|
|
|
|
|
|
|
||
|
|
Foreign exchange contracts
|
|
(854
|
)
|
|
(1,360
|
)
|
||
|
|
|
|
|
|
|
||||
|
|
Total derivative assets
|
|
12,699
|
|
|
19,695
|
|
||
|
|
Total derivative liabilities
|
|
(1,174
|
)
|
|
(1,439
|
)
|
||
|
|
Total net derivative assets
|
|
$
|
11,525
|
|
|
$
|
18,256
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||
|
|
|
|
Derivative Gain
Recognized in Earnings
|
|
Hedged Item Expense
Recognized in Earnings
|
||||||||||||
Derivative Instrument
|
|
Location of Gain (Loss)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Interest rate swaps
|
|
Interest expense
|
|
$
|
9,994
|
|
|
$
|
11,583
|
|
|
$
|
(31,137
|
)
|
|
$
|
(33,125
|
)
|
|
|
Year Ended December 31,
|
||||||||||||||||
|
|
Derivative Gain (Loss)
Recognized in AOCI
(Effective Portion)
|
|
Location of Gain (Loss)
(Effective Portion)
|
|
Gain (Loss) Reclassified
from AOCI to Earnings
(Effective Portion)
|
||||||||||||
Derivative Instrument
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|||||||||
Foreign exchange contracts
|
|
$
|
(2,055
|
)
|
|
$
|
2,141
|
|
|
Revenue
|
|
$
|
1,298
|
|
|
$
|
(166
|
)
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
(185
|
)
|
|
(719
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
$
|
1,113
|
|
|
$
|
(885
|
)
|
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
|
Derivative Gain (Loss)
Recognized in Earnings
|
||||||
Derivatives Instrument
|
|
Location of Derivative Gain (Loss)
|
|
2012
|
|
2011
|
||||
Foreign exchange contracts
|
|
Selling, general and administrative expense
|
|
$
|
(4,254
|
)
|
|
$
|
(17,214
|
)
|
|
Severance and benefits costs
|
|
Pension and
Retiree
Medical
|
|
Asset
impairments
|
|
Other exit
costs
|
|
Total
|
||||||||||
Balance at December 31, 2009
|
$
|
73,792
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,834
|
|
|
$
|
88,626
|
|
Expenses, net
|
114,873
|
|
|
23,620
|
|
|
9,799
|
|
|
38,163
|
|
|
186,455
|
|
|||||
Gain on sale of facility
|
—
|
|
|
—
|
|
|
(8,897
|
)
|
|
—
|
|
|
(8,897
|
)
|
|||||
Cash payments
|
(87,026
|
)
|
|
—
|
|
|
8,897
|
|
|
(41,436
|
)
|
|
(119,565
|
)
|
|||||
Non-cash charges
|
—
|
|
|
(23,620
|
)
|
|
(9,799
|
)
|
|
—
|
|
|
(33,419
|
)
|
|||||
Balance at December 31, 2010
|
101,639
|
|
|
—
|
|
|
—
|
|
|
11,561
|
|
|
113,200
|
|
|||||
Expenses, net
|
101,043
|
|
|
8,178
|
|
|
13,528
|
|
|
12,471
|
|
|
135,220
|
|
|||||
Gain on sale of facility
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
(601
|
)
|
|||||
Cash payments
|
(97,646
|
)
|
|
—
|
|
|
601
|
|
|
(9,957
|
)
|
|
(107,002
|
)
|
|||||
Non-cash charges
|
—
|
|
|
(8,178
|
)
|
|
(13,528
|
)
|
|
—
|
|
|
(21,706
|
)
|
|||||
Balance at December 31, 2011
|
105,036
|
|
|
—
|
|
|
—
|
|
|
14,075
|
|
|
119,111
|
|
|||||
Expenses, net
|
24,992
|
|
|
—
|
|
|
—
|
|
|
(1,627
|
)
|
|
23,365
|
|
|||||
Cash payments
|
(67,488
|
)
|
|
—
|
|
|
—
|
|
|
(7,230
|
)
|
|
(74,718
|
)
|
|||||
Non-cash charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance at December 31, 2012
|
$
|
62,540
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,218
|
|
|
$
|
67,758
|
|
Years ending December 31,
|
|
||
2013
|
$
|
90,936
|
|
2014
|
69,945
|
|
|
2015
|
49,835
|
|
|
2016
|
32,355
|
|
|
2017
|
18,647
|
|
|
Thereafter
|
22,360
|
|
|
Total minimum lease payments
|
$
|
284,078
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Revenue:
|
|
|
|
|
|
|
|
||||
North America Mailing
|
$
|
1,818,952
|
|
|
$
|
1,961,198
|
|
|
$
|
2,100,677
|
|
International Mailing
|
675,637
|
|
|
707,416
|
|
|
674,759
|
|
|||
Small & Medium Business Solutions
|
2,494,589
|
|
|
2,668,614
|
|
|
2,775,436
|
|
|||
Production Mail
|
512,109
|
|
|
544,483
|
|
|
561,447
|
|
|||
Software
|
393,380
|
|
|
407,402
|
|
|
374,750
|
|
|||
Management Services
|
920,958
|
|
|
948,891
|
|
|
999,288
|
|
|||
Mail Services
|
445,093
|
|
|
411,634
|
|
|
407,897
|
|
|||
Marketing Services
|
137,886
|
|
|
141,572
|
|
|
141,538
|
|
|||
Enterprise Business Solutions
|
2,409,426
|
|
|
2,453,982
|
|
|
2,484,920
|
|
|||
Total revenue
|
$
|
4,904,015
|
|
|
$
|
5,122,596
|
|
|
$
|
5,260,356
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
EBIT:
|
|
|
|
|
|
|
|
||||
North America Mailing
|
$
|
688,665
|
|
|
$
|
727,999
|
|
|
$
|
755,153
|
|
International Mailing
|
78,979
|
|
|
98,601
|
|
|
78,950
|
|
|||
Small & Medium Business Solutions
|
767,644
|
|
|
826,600
|
|
|
834,103
|
|
|||
Production Mail
|
25,644
|
|
|
32,562
|
|
|
60,896
|
|
|||
Software
|
37,958
|
|
|
38,182
|
|
|
40,046
|
|
|||
Management Services
|
55,198
|
|
|
76,321
|
|
|
92,671
|
|
|||
Mail Services
|
101,005
|
|
|
103,026
|
|
|
84,714
|
|
|||
Marketing Services
|
28,061
|
|
|
26,184
|
|
|
26,133
|
|
|||
Enterprise Business Solutions
|
247,866
|
|
|
276,275
|
|
|
304,460
|
|
|||
Total EBIT
|
1,015,510
|
|
|
1,102,875
|
|
|
1,138,563
|
|
|||
Reconciling items:
|
|
|
|
|
|
|
|
||||
Interest, net
(1)
|
(188,386
|
)
|
|
(197,266
|
)
|
|
(201,324
|
)
|
|||
Corporate and other expenses
|
(199,394
|
)
|
|
(198,020
|
)
|
|
(199,089
|
)
|
|||
Restructuring charges and asset impairments
|
(23,117
|
)
|
|
(136,548
|
)
|
|
(181,961
|
)
|
|||
Goodwill impairment
|
—
|
|
|
(84,500
|
)
|
|
—
|
|
|||
Income from continuing operations before income taxes
|
$
|
604,613
|
|
|
$
|
486,541
|
|
|
$
|
556,189
|
|
(1)
|
Includes financing interest expense, other interest expense and interest income.
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Depreciation and amortization:
|
|
|
|
|
|
|
|
||||
North America Mailing
|
$
|
104,957
|
|
|
$
|
123,252
|
|
|
$
|
133,877
|
|
International Mailing
|
26,804
|
|
|
29,961
|
|
|
36,424
|
|
|||
Small & Medium Business Solutions
|
131,761
|
|
|
153,213
|
|
|
170,301
|
|
|||
Production Mail
|
13,344
|
|
|
12,139
|
|
|
12,974
|
|
|||
Software
|
24,324
|
|
|
34,389
|
|
|
36,962
|
|
|||
Management Services
|
33,008
|
|
|
27,416
|
|
|
33,398
|
|
|||
Mail Services
|
32,446
|
|
|
26,636
|
|
|
27,924
|
|
|||
Marketing Services
|
3,888
|
|
|
3,693
|
|
|
5,479
|
|
|||
Enterprise Business Solutions
|
107,010
|
|
|
104,273
|
|
|
116,737
|
|
|||
Total for reportable segments
|
238,771
|
|
|
257,486
|
|
|
287,038
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Unallocated amount
|
16,785
|
|
|
14,656
|
|
|
16,615
|
|
|||
Consolidated depreciation and amortization
|
$
|
255,556
|
|
|
$
|
272,142
|
|
|
$
|
303,653
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
|
||||
North America Mailing
|
$
|
78,511
|
|
|
$
|
57,308
|
|
|
$
|
67,731
|
|
International Mailing
|
29,642
|
|
|
13,905
|
|
|
999
|
|
|||
Small & Medium Business Solutions
|
108,153
|
|
|
71,213
|
|
|
68,730
|
|
|||
Production Mail
|
12,694
|
|
|
11,326
|
|
|
8,326
|
|
|||
Software
|
1,550
|
|
|
5,142
|
|
|
4,215
|
|
|||
Management Services
|
32,846
|
|
|
18,853
|
|
|
17,307
|
|
|||
Mail Services
|
17,676
|
|
|
34,987
|
|
|
7,243
|
|
|||
Marketing Services
|
2,436
|
|
|
364
|
|
|
626
|
|
|||
Enterprise Business Solutions
|
67,202
|
|
|
70,672
|
|
|
37,717
|
|
|||
Total for reportable segments
|
175,355
|
|
|
141,885
|
|
|
106,447
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Unallocated amount
|
1,231
|
|
|
14,095
|
|
|
13,321
|
|
|||
Consolidated capital expenditures
|
$
|
176,586
|
|
|
$
|
155,980
|
|
|
$
|
119,768
|
|
|
December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Assets:
|
|
|
|
|
|
|
|
||||
North America Mailing
|
$
|
3,101,959
|
|
|
$
|
3,350,457
|
|
|
$
|
3,488,322
|
|
International Mailing
|
871,162
|
|
|
789,337
|
|
|
962,973
|
|
|||
Small & Medium Business Solutions
|
3,973,121
|
|
|
4,139,794
|
|
|
4,451,295
|
|
|||
Production Mail
|
408,657
|
|
|
504,939
|
|
|
547,002
|
|
|||
Software
|
929,509
|
|
|
932,389
|
|
|
1,058,057
|
|
|||
Management Services
|
700,972
|
|
|
688,766
|
|
|
799,290
|
|
|||
Mail Services
|
397,745
|
|
|
454,585
|
|
|
512,785
|
|
|||
Marketing Services
|
221,269
|
|
|
235,462
|
|
|
230,995
|
|
|||
Enterprise Business Solutions
|
2,658,152
|
|
|
2,816,141
|
|
|
3,148,129
|
|
|||
Total for reportable segments
|
6,631,273
|
|
|
6,955,935
|
|
|
7,599,424
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
913,276
|
|
|
856,238
|
|
|
484,363
|
|
|||
Short-term investments
|
36,611
|
|
|
12,971
|
|
|
30,609
|
|
|||
Other corporate assets
|
278,731
|
|
|
321,960
|
|
|
329,627
|
|
|||
Consolidated assets
|
$
|
7,859,891
|
|
|
$
|
8,147,104
|
|
|
$
|
8,444,023
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Revenues
|
|
|
|
|
|
||||||
United States
|
$
|
3,357,274
|
|
|
$
|
3,475,473
|
|
|
$
|
3,672,842
|
|
Outside United States
|
1,546,741
|
|
|
1,647,123
|
|
|
1,587,514
|
|
|||
Total
|
$
|
4,904,015
|
|
|
$
|
5,122,596
|
|
|
$
|
5,260,356
|
|
|
December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Identifiable long-lived assets:
|
|
|
|
|
|
||||||
United States
|
$
|
2,831,810
|
|
|
$
|
2,749,101
|
|
|
$
|
2,939,467
|
|
Outside United States
|
836,346
|
|
|
910,048
|
|
|
996,963
|
|
|||
Total
|
$
|
3,668,156
|
|
|
$
|
3,659,149
|
|
|
$
|
3,936,430
|
|
|
United States
|
|
Foreign
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Accumulated benefit obligation
|
$
|
1,802,811
|
|
|
$
|
1,684,050
|
|
|
$
|
648,439
|
|
|
$
|
543,599
|
|
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
1,707,390
|
|
|
$
|
1,632,286
|
|
|
$
|
581,904
|
|
|
$
|
541,241
|
|
Service cost
|
18,939
|
|
|
19,450
|
|
|
7,763
|
|
|
7,310
|
|
||||
Interest cost
|
81,040
|
|
|
87,738
|
|
|
27,793
|
|
|
28,329
|
|
||||
Plan participants' contributions
|
—
|
|
|
—
|
|
|
1,106
|
|
|
1,868
|
|
||||
Actuarial loss
|
145,641
|
|
|
94,495
|
|
|
45,537
|
|
|
30,648
|
|
||||
Foreign currency changes
|
—
|
|
|
—
|
|
|
22,115
|
|
|
(6,424
|
)
|
||||
Settlement / curtailment
|
6
|
|
|
2,941
|
|
|
(1,489
|
)
|
|
16
|
|
||||
Special termination benefits
|
—
|
|
|
1,489
|
|
|
601
|
|
|
277
|
|
||||
Benefits paid
|
(130,339
|
)
|
|
(131,009
|
)
|
|
(21,504
|
)
|
|
(21,361
|
)
|
||||
Benefit obligation at end of year
|
1,822,677
|
|
|
1,707,390
|
|
|
663,826
|
|
|
581,904
|
|
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
1,426,536
|
|
|
1,385,174
|
|
|
438,848
|
|
|
450,683
|
|
||||
Actual return on plan assets
|
193,696
|
|
|
41,388
|
|
|
44,928
|
|
|
(7,478
|
)
|
||||
Company contributions
|
94,039
|
|
|
130,983
|
|
|
30,089
|
|
|
18,616
|
|
||||
Plan participants' contributions
|
—
|
|
|
—
|
|
|
1,106
|
|
|
1,868
|
|
||||
Settlement / curtailment
|
—
|
|
|
—
|
|
|
(1,489
|
)
|
|
—
|
|
||||
Foreign currency changes
|
—
|
|
|
—
|
|
|
17,353
|
|
|
(3,480
|
)
|
||||
Benefits paid
|
(130,339
|
)
|
|
(131,009
|
)
|
|
(21,504
|
)
|
|
(21,361
|
)
|
||||
Fair value of plan assets at end of year
|
1,583,932
|
|
|
1,426,536
|
|
|
509,331
|
|
|
438,848
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Funded status
|
$
|
(238,745
|
)
|
|
$
|
(280,854
|
)
|
|
$
|
(154,495
|
)
|
|
$
|
(143,056
|
)
|
Amounts recognized in Consolidated Balance Sheets
|
|
|
|
|
|
|
|
||||||||
Non-current asset
|
$
|
175
|
|
|
$
|
40
|
|
|
$
|
530
|
|
|
$
|
888
|
|
Current liability
|
(7,456
|
)
|
|
(11,323
|
)
|
|
(967
|
)
|
|
(852
|
)
|
||||
Non-current liability
|
(231,464
|
)
|
|
(269,571
|
)
|
|
(154,058
|
)
|
|
(143,092
|
)
|
||||
Net amount recognized
|
$
|
(238,745
|
)
|
|
$
|
(280,854
|
)
|
|
$
|
(154,495
|
)
|
|
$
|
(143,056
|
)
|
|
United States
|
|
Foreign
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Projected benefit obligation
|
$
|
1,821,300
|
|
|
$
|
1,705,732
|
|
|
$
|
660,110
|
|
|
$
|
579,646
|
|
Accumulated benefit obligation
|
$
|
1,801,433
|
|
|
$
|
1,682,392
|
|
|
$
|
645,361
|
|
|
$
|
541,723
|
|
Fair value of plan assets
|
$
|
1,582,379
|
|
|
$
|
1,424,837
|
|
|
$
|
505,084
|
|
|
$
|
435,702
|
|
|
United States
|
|
Foreign
|
||||
Net actuarial loss
|
$
|
72,382
|
|
|
$
|
13,191
|
|
Prior service cost
|
803
|
|
|
99
|
|
||
Transition asset
|
—
|
|
|
(10
|
)
|
||
Total
|
$
|
73,185
|
|
|
$
|
13,280
|
|
|
United States
|
|
Foreign
|
||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Service cost
|
$
|
18,939
|
|
|
$
|
19,450
|
|
|
$
|
23,157
|
|
|
$
|
7,763
|
|
|
$
|
7,310
|
|
|
$
|
6,907
|
|
Interest cost
|
81,040
|
|
|
87,738
|
|
|
89,602
|
|
|
27,793
|
|
|
28,329
|
|
|
27,507
|
|
||||||
Expected return on plan assets
|
(121,623
|
)
|
|
(123,058
|
)
|
|
(123,095
|
)
|
|
(32,299
|
)
|
|
(31,784
|
)
|
|
(28,838
|
)
|
||||||
Amortization of transition credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|
(9
|
)
|
||||||
Amortization of prior service cost
|
803
|
|
|
147
|
|
|
(2,575
|
)
|
|
112
|
|
|
170
|
|
|
214
|
|
||||||
Recognized net actuarial loss
|
52,957
|
|
|
37,522
|
|
|
32,343
|
|
|
14,103
|
|
|
11,135
|
|
|
10,205
|
|
||||||
Special termination benefits
|
—
|
|
|
1,489
|
|
|
8,148
|
|
|
601
|
|
|
277
|
|
|
291
|
|
||||||
Settlement / curtailment
|
(48
|
)
|
|
3,036
|
|
|
10,712
|
|
|
444
|
|
|
274
|
|
|
1,285
|
|
||||||
Net periodic benefit cost
|
$
|
32,068
|
|
|
$
|
26,324
|
|
|
$
|
38,292
|
|
|
$
|
18,507
|
|
|
$
|
15,701
|
|
|
$
|
17,562
|
|
|
United States
|
|
Foreign
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Curtailments effects and settlements
|
$
|
48
|
|
|
$
|
(95
|
)
|
|
$
|
(444
|
)
|
|
$
|
(274
|
)
|
Net actuarial loss
|
73,701
|
|
|
176,164
|
|
|
32,596
|
|
|
67,934
|
|
||||
Prior service credit
|
(127
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amortization of net actuarial (loss) gain
|
(52,957
|
)
|
|
(37,522
|
)
|
|
(14,103
|
)
|
|
(11,135
|
)
|
||||
Amortization of prior service (cost) credit
|
(803
|
)
|
|
(147
|
)
|
|
(112
|
)
|
|
(170
|
)
|
||||
Net transitional obligation (asset)
|
—
|
|
|
—
|
|
|
10
|
|
|
9
|
|
||||
Total recognized in other comprehensive income
|
$
|
19,862
|
|
|
$
|
138,400
|
|
|
$
|
17,947
|
|
|
$
|
56,364
|
|
|
2012
|
|
2011
|
|
2010
|
|||||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
4.05%
|
|
4.95%
|
|
5.60%
|
|||||||||
Rate of compensation increase
|
3.50%
|
|
3.50%
|
|
3.50%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
4.95%
|
|
5.60%
|
|
5.75%
|
|||||||||
Expected return on plan assets
|
7.75%
|
|
8.00%
|
|
8.00%
|
|||||||||
Rate of compensation increase
|
3.50%
|
|
3.50%
|
|
3.50%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
1.95
|
%
|
-
|
4.65%
|
|
1.80
|
%
|
-
|
6.10%
|
|
2.25
|
%
|
-
|
5.50%
|
Rate of compensation increase
|
1.50
|
%
|
-
|
3.50%
|
|
2.10
|
%
|
-
|
4.60%
|
|
2.50
|
%
|
-
|
5.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
1.80
|
%
|
-
|
6.10%
|
|
2.00
|
%
|
-
|
5.50%
|
|
2.25
|
%
|
-
|
6.00%
|
Expected return on plan assets
|
3.25
|
%
|
-
|
7.50%
|
|
4.00
|
%
|
-
|
7.75%
|
|
4.50
|
%
|
-
|
7.75%
|
Rate of compensation increase
|
2.10
|
%
|
-
|
4.60%
|
|
2.10
|
%
|
-
|
5.50%
|
|
2.50
|
%
|
-
|
5.60%
|
|
Target allocation
|
|
Percent of Plan Assets at December 31,
|
|||||
|
2013
|
|
2012
|
|
2011
|
|||
Asset category
|
|
|
|
|
|
|||
U.S. equities
|
14
|
%
|
|
14
|
%
|
|
18
|
%
|
Non-U.S. equities
|
14
|
%
|
|
15
|
%
|
|
16
|
%
|
Fixed income
|
62
|
%
|
|
61
|
%
|
|
56
|
%
|
Real estate
|
2
|
%
|
|
4
|
%
|
|
4
|
%
|
Private equity
|
8
|
%
|
|
6
|
%
|
|
6
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Target Allocation
|
|
Percent of Plan Assets at December 31,
|
|||||
|
2013
|
|
2012
|
|
2011
|
|||
Asset category
|
|
|
|
|
|
|||
U.K. equities
|
32
|
%
|
|
32
|
%
|
|
34
|
%
|
Non-U.K. equities
|
33
|
%
|
|
31
|
%
|
|
28
|
%
|
Fixed income
|
35
|
%
|
|
36
|
%
|
|
32
|
%
|
Cash
|
—
|
%
|
|
1
|
%
|
|
6
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31, 2012
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
17,363
|
|
|
$
|
—
|
|
|
$
|
17,363
|
|
Equity securities
|
250,303
|
|
|
203,766
|
|
|
—
|
|
|
454,069
|
|
||||
Commingled fixed income securities
|
—
|
|
|
200,899
|
|
|
—
|
|
|
200,899
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
53,984
|
|
|
35,461
|
|
|
—
|
|
|
89,445
|
|
||||
Debt securities - corporate
|
—
|
|
|
621,691
|
|
|
—
|
|
|
621,691
|
|
||||
Mortgage-backed securities
|
—
|
|
|
39,552
|
|
|
3,191
|
|
|
42,743
|
|
||||
Asset-backed securities
|
—
|
|
|
547
|
|
|
—
|
|
|
547
|
|
||||
Private equity
|
—
|
|
|
—
|
|
|
91,805
|
|
|
91,805
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
63,168
|
|
|
63,168
|
|
||||
Derivatives
|
738
|
|
|
—
|
|
|
—
|
|
|
738
|
|
||||
Securities lending collateral
(1)
|
—
|
|
|
104,375
|
|
|
—
|
|
|
104,375
|
|
||||
Total plan assets at fair value
|
$
|
305,025
|
|
|
$
|
1,223,654
|
|
|
$
|
158,164
|
|
|
$
|
1,686,843
|
|
Securities lending payable
(1)
|
|
|
|
|
|
|
(104,375
|
)
|
|||||||
Cash
|
|
|
|
|
|
|
618
|
|
|||||||
Other
|
|
|
|
|
|
|
846
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
1,583,932
|
|
|
December 31, 2011
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
22,064
|
|
|
$
|
—
|
|
|
$
|
22,064
|
|
Equity securities
|
218,010
|
|
|
262,152
|
|
|
—
|
|
|
480,162
|
|
||||
Commingled fixed income securities
|
—
|
|
|
177,349
|
|
|
—
|
|
|
177,349
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
60,411
|
|
|
16,745
|
|
|
—
|
|
|
77,156
|
|
||||
Debt securities - corporate
|
—
|
|
|
467,281
|
|
|
—
|
|
|
467,281
|
|
||||
Mortgage-backed securities
|
—
|
|
|
57,922
|
|
|
3,702
|
|
|
61,624
|
|
||||
Asset-backed securities
|
—
|
|
|
919
|
|
|
—
|
|
|
919
|
|
||||
Private equity
|
—
|
|
|
—
|
|
|
88,870
|
|
|
88,870
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
57,918
|
|
|
57,918
|
|
||||
Derivatives
|
293
|
|
|
—
|
|
|
—
|
|
|
293
|
|
||||
Securities lending collateral
(1)
|
—
|
|
|
119,528
|
|
|
—
|
|
|
119,528
|
|
||||
Total plan assets at fair value
|
$
|
278,714
|
|
|
$
|
1,123,960
|
|
|
$
|
150,490
|
|
|
$
|
1,553,164
|
|
Securities lending payable
(1)
|
|
|
|
|
|
|
(119,528
|
)
|
|||||||
Cash
|
|
|
|
|
|
|
1,108
|
|
|||||||
Other
|
|
|
|
|
|
|
(8,208
|
)
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
1,426,536
|
|
|
December 31, 2012
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
7,130
|
|
|
$
|
—
|
|
|
$
|
7,130
|
|
Equity securities
|
96,442
|
|
|
213,662
|
|
|
—
|
|
|
310,104
|
|
||||
Commingled fixed income securities
|
—
|
|
|
157,332
|
|
|
—
|
|
|
157,332
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
—
|
|
|
18,937
|
|
|
—
|
|
|
18,937
|
|
||||
Debt securities - corporate
|
—
|
|
|
6,935
|
|
|
—
|
|
|
6,935
|
|
||||
Derivatives
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
(114
|
)
|
||||
Total plan assets at fair value
|
$
|
96,442
|
|
|
$
|
403,882
|
|
|
$
|
—
|
|
|
$
|
500,324
|
|
Cash
|
|
|
|
|
|
|
4,414
|
|
|||||||
Other
|
|
|
|
|
|
|
4,593
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
509,331
|
|
|
December 31, 2011
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
7,236
|
|
|
$
|
—
|
|
|
$
|
7,236
|
|
Equity securities
|
113,257
|
|
|
150,787
|
|
|
—
|
|
|
264,044
|
|
||||
Commingled fixed income securities
|
—
|
|
|
127,611
|
|
|
—
|
|
|
127,611
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
—
|
|
|
13,616
|
|
|
—
|
|
|
13,616
|
|
||||
Debt securities - corporate
|
—
|
|
|
7,150
|
|
|
—
|
|
|
7,150
|
|
||||
Derivatives
|
—
|
|
|
382
|
|
|
—
|
|
|
382
|
|
||||
Total plan assets at fair value
|
$
|
113,257
|
|
|
$
|
306,782
|
|
|
$
|
—
|
|
|
$
|
420,039
|
|
Cash
|
|
|
|
|
|
|
16,424
|
|
|||||||
Other
|
|
|
|
|
|
|
2,385
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
438,848
|
|
•
|
Money Market Funds:
Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies and other highly liquid, low-risk securities. Money market funds are principally used for overnight deposits. The money market funds are classified as Level 2 since they are not actively traded on an exchange.
|
•
|
Equity Securities:
Equity securities include U.S. and foreign common stock, American Depository Receipts, preferred stock and commingled funds. Equity securities classified as Level 1 are valued using active, high volume trades for identical securities. Equity securities classified as Level 2 represent those not listed on an exchange in an active market. These securities are valued based on quoted market prices of similar securities.
|
•
|
Commingled Fixed Income Securities:
Mutual funds that invest in a variety of fixed income securities including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Value of the funds is based on the net asset value (NAV) per unit as reported by the fund manager. NAV is based on the market value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding. Commingled fixed income securities are not listed on an active exchange and are classified as Level 2.
|
•
|
Debt Securities - U.S. and Foreign Governments, Agencies and Municipalities:
Government securities include treasury notes and bonds, foreign government issues, U.S. government sponsored agency debt and commingled funds. Municipal debt securities include general obligation securities and revenue-backed securities. Debt securities classified as Level 1 are valued using active, high volume trades for identical securities. Debt securities classified as Level 2 are valued through benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.
|
•
|
Corporate Debt Securities
: Investments are comprised of both investment grade debt (≥BBB-) and high-yield debt (≤BBB-). The fair value of corporate debt securities is valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2.
|
•
|
Mortgage-Backed Securities (MBS)
: Investments are comprised of agency-backed MBS, non-agency MBS, collateralized mortgage obligations, commercial MBS, and commingled funds. These securities are valued based on external pricing indices. When external index pricing is not observable, MBS are valued based on external price/spread data. If neither pricing method is available, broker quotes are utilized. When inputs are observable and supported by an active market, MBS are classified as Level 2 and when inputs are unobservable, MBS are classified as Level 3.
|
•
|
Asset-Backed Securities (ABS)
: Investments are primarily comprised of credit card receivables, auto loan receivables, student loan receivables, and Small Business Administration loans. These securities are valued based on external pricing indices or external price/spread data and are classified as Level 2.
|
•
|
Private Equity
: Investments are comprised of units in fund-of-fund investment vehicles. Fund-of-funds consist of various private equity investments and are used in an effort to gain greater diversification. The investments are valued in accordance with the most appropriate valuation techniques, and are classified as Level 3 due to the unobservable inputs used to determine a fair value.
|
•
|
Real Estate:
Investments include units in open-ended commingled real estate funds. Properties that comprise these funds are valued in accordance with the most appropriate valuation techniques, and are classified as Level 3 due to the unobservable inputs used to determine a fair value.
|
•
|
Derivatives:
Instruments are comprised of futures, forwards, options and warrants and are used to gain exposure to a desired investment as well as for defensive hedging purposes against currency and interest rate fluctuations. Derivative instruments classified as Level 1 are valued through a readily available exchange listed price. Derivative instruments classified as Level 2 are valued using observable inputs but are not listed or traded on an exchange.
|
•
|
Securities Lending Fund:
Investment represents a commingled fund through our custodian's securities lending program. The U.S. pension plan lends securities that are held within the plan to other banks and/or brokers, and receives collateral, typically cash. This collateral is invested in a short-term fixed income securities commingled fund. The commingled fund is not listed or traded on an exchange and is classified as Level 2. This amount invested in the fund is offset by a corresponding liability reflected in the U.S. pension plan's net assets available for benefits.
|
|
Mortgage-backed securities
|
|
Private equity
|
|
Real estate
|
|
Total
|
||||||||
Balance at beginning of year
|
$
|
3,702
|
|
|
$
|
88,870
|
|
|
$
|
57,918
|
|
|
$
|
150,490
|
|
Realized (losses) gains
|
(3
|
)
|
|
(13
|
)
|
|
1,780
|
|
|
1,764
|
|
||||
Unrealized (losses) gains
|
(20
|
)
|
|
742
|
|
|
5,711
|
|
|
6,433
|
|
||||
Net purchases, sales and settlements
|
(488
|
)
|
|
2,206
|
|
|
(2,241
|
)
|
|
(523
|
)
|
||||
Balance at end of year
|
$
|
3,191
|
|
|
$
|
91,805
|
|
|
$
|
63,168
|
|
|
$
|
158,164
|
|
|
2012
|
|
2011
|
||||
Benefit obligation
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
285,828
|
|
|
$
|
280,386
|
|
Service cost
|
3,563
|
|
|
3,328
|
|
||
Interest cost
|
11,187
|
|
|
13,528
|
|
||
Plan participants' contributions
|
9,547
|
|
|
8,861
|
|
||
Actuarial loss
|
4,150
|
|
|
20,792
|
|
||
Foreign currency changes
|
697
|
|
|
(648
|
)
|
||
Plan amendment
|
8,501
|
|
|
—
|
|
||
Curtailment
|
—
|
|
|
3,245
|
|
||
Special termination benefits
|
—
|
|
|
300
|
|
||
Benefits paid
|
(40,616
|
)
|
|
(43,964
|
)
|
||
Benefit obligation at end of year
(1)
|
$
|
282,857
|
|
|
$
|
285,828
|
|
(1)
|
The benefit obligation for the U.S. nonpension postretirement plans was
$256 million
and
$262 million
at
December 31, 2012
and
2011
, respectively.
|
|
2012
|
|
2011
|
||||
Fair value of plan assets
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Company contribution
|
31,069
|
|
|
35,103
|
|
||
Plan participants' contributions
|
9,547
|
|
|
8,861
|
|
||
Gross benefits paid
|
(40,616
|
)
|
|
(43,964
|
)
|
||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Funded status
|
$
|
(282,857
|
)
|
|
$
|
(285,828
|
)
|
|
2012
|
|
2011
|
||||
Net actuarial loss
|
$
|
106,654
|
|
|
$
|
115,713
|
|
Prior service credit
|
8,872
|
|
|
(5,696
|
)
|
||
Total
|
$
|
115,526
|
|
|
$
|
110,017
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Service cost
|
$
|
3,563
|
|
|
$
|
3,328
|
|
|
$
|
3,724
|
|
Interest cost
|
11,187
|
|
|
13,528
|
|
|
13,828
|
|
|||
Amortization of prior service benefit
|
(1,724
|
)
|
|
(2,504
|
)
|
|
(2,511
|
)
|
|||
Recognized net actuarial loss
|
8,214
|
|
|
7,666
|
|
|
6,793
|
|
|||
Curtailment
|
—
|
|
|
2,839
|
|
|
6,954
|
|
|||
Special termination benefits
|
—
|
|
|
300
|
|
|
191
|
|
|||
Net periodic benefit cost
|
$
|
21,240
|
|
|
$
|
25,157
|
|
|
$
|
28,979
|
|
|
2012
|
|
2011
|
||||
Net actuarial loss
|
$
|
(195
|
)
|
|
$
|
22,201
|
|
Amortization of net actuarial loss
|
4,631
|
|
|
(9,980
|
)
|
||
Amortization of prior service credit
|
1,724
|
|
|
2,504
|
|
||
Adjustment for actual Medicare Part D Premium
|
(651
|
)
|
|
(2,040
|
)
|
||
Curtailment
|
—
|
|
|
308
|
|
||
Total recognized in other comprehensive income
|
$
|
5,509
|
|
|
$
|
12,993
|
|
Net actuarial loss
|
$
|
8,961
|
|
Prior service credit
|
661
|
|
|
Total
|
$
|
9,622
|
|
|
2012
|
|
2011
|
|
2010
|
|||
Discount rate used to determine benefit obligation
|
|
|
|
|
|
|||
U.S.
|
3.50
|
%
|
|
4.50
|
%
|
|
5.15
|
%
|
Canada
|
3.90
|
%
|
|
4.15
|
%
|
|
5.15
|
%
|
|
|
|
|
|
|
|||
Discount rate used to determine net period benefit cost
|
|
|
|
|
|
|||
U.S.
|
4.50
|
%
|
|
5.15
|
%
|
|
5.35
|
%
|
Canada
|
4.15
|
%
|
|
5.15
|
%
|
|
5.85
|
%
|
|
1% Increase
|
|
1% Decrease
|
||
Effect on total of service and interest cost components
|
573
|
|
|
(477
|
)
|
Effect on postretirement benefit obligation
|
10,086
|
|
|
(8,703
|
)
|
|
Pension Benefits
|
|
Nonpension Benefits
|
||||
Years ending December 31,
|
|
|
|
||||
2013
|
$
|
139,394
|
|
|
$
|
25,959
|
|
2014
|
137,336
|
|
|
24,905
|
|
||
2015
|
130,778
|
|
|
23,826
|
|
||
2016
|
132,252
|
|
|
22,932
|
|
||
2017
|
134,710
|
|
|
22,037
|
|
||
2018 - 2022
|
700,363
|
|
|
98,604
|
|
||
|
$
|
1,374,833
|
|
|
$
|
218,263
|
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
International Mail Services
|
|
|
|
|
|
||||||
Revenue
|
$
|
135,222
|
|
|
$
|
155,378
|
|
|
$
|
164,898
|
|
Cost of revenue
|
120,251
|
|
|
142,165
|
|
|
163,818
|
|
|||
SG&A
|
19,565
|
|
|
28,220
|
|
|
22,379
|
|
|||
Restructuring charges and asset impairments
|
10,234
|
|
|
11,603
|
|
|
313
|
|
|||
Goodwill impairment
|
18,315
|
|
|
45,650
|
|
|
—
|
|
|||
Impairment on assets held for sale
|
6,941
|
|
|
—
|
|
|
—
|
|
|||
Loss before taxes
|
(40,084
|
)
|
|
(72,260
|
)
|
|
(21,612
|
)
|
|||
Tax benefit
|
(15,003
|
)
|
|
(23,025
|
)
|
|
(7,828
|
)
|
|||
Net loss
|
(25,081
|
)
|
|
(49,235
|
)
|
|
(13,784
|
)
|
|||
|
|
|
|
|
|
||||||
Capital Services, net of tax
|
34,312
|
|
|
266,159
|
|
|
(18,104
|
)
|
|||
Income (loss) from discontinued operations
|
$
|
9,231
|
|
|
$
|
216,924
|
|
|
$
|
(31,888
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Numerator:
|
|
|
|
|
|
|
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations
|
$
|
435,932
|
|
|
$
|
400,556
|
|
|
$
|
324,267
|
|
Income (loss) from discontinued operations
|
9,231
|
|
|
216,924
|
|
|
(31,888
|
)
|
|||
Net income (numerator for diluted EPS)
|
445,163
|
|
|
617,480
|
|
|
292,379
|
|
|||
Less: Preference stock dividend
|
(51
|
)
|
|
(58
|
)
|
|
(65
|
)
|
|||
Income attributable to common stockholders (numerator for basic EPS)
|
$
|
445,112
|
|
|
$
|
617,422
|
|
|
$
|
292,314
|
|
Denominator (in thousands):
|
|
|
|
|
|
|
|
|
|||
Weighted-average shares used in basic EPS
|
200,389
|
|
|
201,976
|
|
|
205,968
|
|
|||
Effect of dilutive shares:
|
|
|
|
|
|
|
|
|
|||
Preferred stock
|
2
|
|
|
2
|
|
|
2
|
|
|||
Preference stock
|
398
|
|
|
445
|
|
|
501
|
|
|||
Stock plans
|
577
|
|
|
343
|
|
|
282
|
|
|||
Weighted-average shares used in diluted EPS
|
201,366
|
|
|
202,766
|
|
|
206,753
|
|
|||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
2.18
|
|
|
$
|
1.98
|
|
|
$
|
1.57
|
|
Discontinued operations
|
0.05
|
|
|
1.07
|
|
|
(0.15
|
)
|
|||
Net income - Pitney Bowes Inc.
|
$
|
2.22
|
|
|
$
|
3.06
|
|
|
$
|
1.42
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
2.16
|
|
|
$
|
1.98
|
|
|
$
|
1.57
|
|
Discontinued operations
|
0.05
|
|
|
1.07
|
|
|
(0.15
|
)
|
|||
Net income - Pitney Bowes Inc.
|
$
|
2.21
|
|
|
$
|
3.05
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
||||||
Anti-dilutive options excluded from diluted earnings per share (in thousands):
|
13,801
|
|
|
14,016
|
|
|
15,168
|
|
|
First
Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||||||
2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
1,220,136
|
|
|
$
|
1,213,356
|
|
|
$
|
1,183,216
|
|
|
$
|
1,287,307
|
|
|
$
|
4,904,015
|
|
Cost and expenses
|
1,059,107
|
|
|
1,055,241
|
|
|
1,045,515
|
|
|
1,139,539
|
|
|
4,299,402
|
|
|||||
Income from continuing operations
|
161,029
|
|
|
158,115
|
|
|
137,701
|
|
|
147,768
|
|
|
604,613
|
|
|||||
Provision for income taxes
|
15,493
|
|
|
52,765
|
|
|
37,823
|
|
|
44,224
|
|
|
150,305
|
|
|||||
Income from continuing operations
|
145,536
|
|
|
105,350
|
|
|
99,878
|
|
|
103,544
|
|
|
454,308
|
|
|||||
Gain (loss) from discontinued operations
|
17,728
|
|
|
(1,133
|
)
|
|
(18,751
|
)
|
|
11,387
|
|
|
9,231
|
|
|||||
Net income before attribution of noncontrolling interests
|
163,264
|
|
|
104,217
|
|
|
81,127
|
|
|
114,931
|
|
|
463,539
|
|
|||||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
4,594
|
|
|
4,594
|
|
|
4,594
|
|
|
4,594
|
|
|
18,376
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
158,670
|
|
|
$
|
99,623
|
|
|
$
|
76,533
|
|
|
$
|
110,337
|
|
|
$
|
445,163
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
140,942
|
|
|
$
|
100,756
|
|
|
$
|
95,284
|
|
|
$
|
98,950
|
|
|
$
|
435,932
|
|
Gain from discontinued operations
|
17,728
|
|
|
(1,133
|
)
|
|
(18,751
|
)
|
|
11,387
|
|
|
9,231
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
158,670
|
|
|
$
|
99,623
|
|
|
$
|
76,533
|
|
|
$
|
110,337
|
|
|
$
|
445,163
|
|
Basic earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.70
|
|
|
$
|
0.50
|
|
|
$
|
0.48
|
|
|
$
|
0.49
|
|
|
$
|
2.18
|
|
Discontinued operations
|
0.09
|
|
|
(0.01
|
)
|
|
(0.09
|
)
|
|
0.06
|
|
|
0.05
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.79
|
|
|
$
|
0.50
|
|
|
$
|
0.38
|
|
|
$
|
0.55
|
|
|
$
|
2.22
|
|
Diluted earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.70
|
|
|
$
|
0.50
|
|
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
2.16
|
|
Discontinued operations
|
0.09
|
|
|
(0.01
|
)
|
|
(0.09
|
)
|
|
0.06
|
|
|
0.05
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.79
|
|
|
$
|
0.50
|
|
|
$
|
0.38
|
|
|
$
|
0.55
|
|
|
$
|
2.21
|
|
|
First
Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||||||
2011
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
1,279,184
|
|
|
$
|
1,275,500
|
|
|
$
|
1,262,757
|
|
|
$
|
1,305,155
|
|
|
$
|
5,122,596
|
|
Cost and expenses
|
1,139,147
|
|
|
1,112,937
|
|
|
1,101,815
|
|
|
1,282,156
|
|
|
4,636,055
|
|
|||||
Income from continuing operations
|
140,037
|
|
|
162,563
|
|
|
160,942
|
|
|
22,999
|
|
|
486,541
|
|
|||||
Provision (benefit) for income taxes
|
43,552
|
|
|
54,190
|
|
|
2,038
|
|
|
(32,170
|
)
|
|
67,610
|
|
|||||
Income from continuing operations
|
96,485
|
|
|
108,373
|
|
|
158,904
|
|
|
55,169
|
|
|
418,931
|
|
|||||
(Loss) gain from discontinued operations
|
(5,588
|
)
|
|
(2,844
|
)
|
|
18,457
|
|
|
206,899
|
|
|
216,924
|
|
|||||
Net income before attribution of noncontrolling interests
|
90,897
|
|
|
105,529
|
|
|
177,361
|
|
|
262,068
|
|
|
635,855
|
|
|||||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
4,594
|
|
|
4,594
|
|
|
4,593
|
|
|
4,594
|
|
|
18,375
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
86,303
|
|
|
$
|
100,935
|
|
|
$
|
172,768
|
|
|
$
|
257,474
|
|
|
$
|
617,480
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
91,891
|
|
|
$
|
103,779
|
|
|
$
|
154,311
|
|
|
$
|
50,575
|
|
|
$
|
400,556
|
|
(Loss) gain from discontinued operations
|
(5,588
|
)
|
|
(2,844
|
)
|
|
18,457
|
|
|
206,899
|
|
|
216,924
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
86,303
|
|
|
$
|
100,935
|
|
|
$
|
172,768
|
|
|
$
|
257,474
|
|
|
$
|
617,480
|
|
Basic earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.45
|
|
|
$
|
0.51
|
|
|
$
|
0.77
|
|
|
$
|
0.25
|
|
|
$
|
1.98
|
|
Discontinued operations
|
(0.03
|
)
|
|
(0.01
|
)
|
|
0.09
|
|
|
1.04
|
|
|
1.07
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.42
|
|
|
$
|
0.50
|
|
|
$
|
0.86
|
|
|
$
|
1.29
|
|
|
$
|
3.06
|
|
Diluted earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.45
|
|
|
$
|
0.51
|
|
|
$
|
0.76
|
|
|
$
|
0.25
|
|
|
$
|
1.98
|
|
Discontinued operations
|
(0.03
|
)
|
|
(0.01
|
)
|
|
0.09
|
|
|
1.03
|
|
|
1.07
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.42
|
|
|
$
|
0.49
|
|
|
$
|
0.85
|
|
|
$
|
1.28
|
|
|
$
|
3.05
|
|
Description
|
|
Balance at beginning of year
|
|
Additions
|
|
Deductions
|
|
Balance at end of year
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
||||||||||||||||
2012
|
|
$
|
25,667
|
|
|
$
|
13,112
|
|
(1)
|
$
|
(18,560
|
)
|
(2)
|
$
|
20,219
|
|
2011
|
|
$
|
26,649
|
|
|
$
|
9,161
|
|
(1)
|
$
|
(10,143
|
)
|
(2)
|
$
|
25,667
|
|
2010
|
|
$
|
39,334
|
|
|
$
|
9,266
|
|
(1)
|
$
|
(21,951
|
)
|
(2)
|
$
|
26,649
|
|
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance for deferred tax asset
|
||||||||||||||||
2012
|
|
$
|
111,438
|
|
|
$
|
40,078
|
|
|
$
|
(9,340
|
)
|
|
$
|
142,176
|
|
2011
|
|
$
|
104,441
|
|
|
$
|
16,709
|
|
|
$
|
(9,712
|
)
|
|
$
|
111,438
|
|
2010
|
|
$
|
95,990
|
|
|
$
|
22,168
|
|
|
$
|
(13,717
|
)
|
|
$
|
104,441
|
|
(1)
|
Includes additions charged to expenses, additions from acquisitions and impact of foreign exchange.
|
(2)
|
Includes uncollectible accounts written off
.
|
Grant Date
|
CIUs
|
Vesting Date
|
Month XX, 20__
|
«Num_of_CIUs»
|
Month XX, __
|
|
Grant Date
|
Stock Options
|
Option Exercise Price
|
Vesting Period/Date
|
Expiration Date
|
Month XX, 20__
|
<< Num of
ISOs >>
|
$__.__
|
X years pro-rata/ __% annual vesting*
|
Month XX, 20__
|
Grant Date
|
Stock Options
|
Option Exercise Price
|
Vesting Period/Date
|
Expiration Date
|
Month XX, 20__
|
<< Num of NQSOs >>
|
$__.__
|
X years pro-rata/ __% annual vesting*
|
Month XX, 20__
|
|
Award Date
|
MSUs
|
MSU Grant Price
|
Vesting Period
|
Vesting Date
|
Month XX, 20XX
|
«Num_of_MSUs»
|
$XX.XX
|
X year cliff vesting, except as provided below
|
First Tuesday in February three years after the Award Date.
|
|
Award Date
|
RSUs
|
Award Date Price
|
Vesting Period / Date
|
Month XX, 20XX
|
«Num_of_RSU»
|
$XX.XX
|
__ year pro-rata / First Tuesday in February each year following Award Date
|
|
TERMINATION EVENT
|
TREATMENT OF CASH INCENTIVE UNIT CYCLES IN PROGRESS
|
Death, Disability* or Retirement / bridged to Retirement**
|
Prorated based on full months of active service through date of death, disability, or retirement / or last day actually worked (LDW) and paid at the end of the award cycle
|
Involuntary termination other than for cause (with a signed separation agreement
and NOT
retirement eligible or bridged to retirement)
|
Prorated based on full months of work through LDW, provided that the award has been outstanding for one year or longer as of the LDW. Awards not outstanding for one year as of the LDW forfeit.
|
Voluntary resignation
|
Forfeited, no pro-rata payment
|
Termination For Cause, Gross misconduct
|
Forfeited, no pro-rata payment
|
TERMINATION EVENT
|
VESTING TREATMENT OF
OPTIONS |
POST-EMPLOYMENT
EXERCISABILITY OF VESTED OPTIONS |
Death or Disability*
|
Immediate Vesting
|
Remainder of original term
|
Retirement / bridged to retirement
|
Accelerated at Retirement (provided that the grant is outstanding for one year or longer as of the last day actually worked (LDW))
|
Remainder of original term
|
Involuntary termination other than for cause (with a signed separation agreement
and NOT
retirement eligible or bridged to retirement)
|
Vesting continues according to plan provisions for involuntary terminations (provided that the grant is outstanding for one year or longer as of the LDW)
|
Exercise according to Plan terms
|
Voluntary resignation
|
Forfeited
|
3 months
|
Gross misconduct
|
Forfeited
|
Forfeited
|
|
TERMINATION EVENT
|
TREATMENT OF
UNVESTED MSUS |
Death or Disability*
|
Immediate Vesting and target units converted into company stock
|
Retirement / bridged to retirement
|
Continue to vest during bridging period and fully vest at retirement, provided that the award has been outstanding for one year or longer as of the last day actually worked (LDW) with units converted into stock at the end of the three-year vesting period based on total shareholder return (TSR). Awards not outstanding for one year as of the LDW forfeit.
|
Involuntary termination other than for cause (with a signed separation agreement
and NOT
retirement eligible or bridged to retirement)
|
Vesting continues according to plan provisions for involuntary terminations, provided that the award has been outstanding for one year or longer as of the LDW with units converted into stock at the end of the three-year vesting period based on TSR. Awards not outstanding for one year as of the LDW forfeit.
|
Voluntary resignation
|
Forfeited
|
Gross misconduct
|
Forfeited
|
TERMINATION EVENT
|
TREATMENT OF UNVESTED RSUS
|
Death or Disability*
|
Immediate Vesting .
|
Retirement / bridged to Retirement**
|
Continue to vest during bridging period and fully vest at retirement, provided that the award is outstanding for one year or longer of the last day actually worked (LDW). Awards not outstanding for one year as of the LDW forfeit.
|
Involuntary termination other than for cause (with a signed separation agreement and NOT retirement eligible or bridged to retirement)
|
Vesting continues according to plan provisions for involuntary terminations, provided that the grant outstanding for one year or longer as of the LDW. Awards not outstanding for one year as of the LDW forfeit.
|
Voluntary resignation
|
Forfeited
|
Gross Misconduct
|
Forfeited
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
$
|
604,613
|
|
|
$
|
486,541
|
|
|
$
|
556,189
|
|
|
$
|
676,771
|
|
|
$
|
701,213
|
|
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
196,368
|
|
|
203,061
|
|
|
203,911
|
|
|
208,855
|
|
|
229,343
|
|
|||||
Portion of rents representative of the interest factor
|
33,438
|
|
|
38,968
|
|
|
39,219
|
|
|
41,499
|
|
|
43,030
|
|
|||||
Amortization of capitalized interest
|
973
|
|
|
1,535
|
|
|
1,716
|
|
|
1,716
|
|
|
1,717
|
|
|||||
Income as adjusted
|
$
|
835,392
|
|
|
$
|
730,105
|
|
|
$
|
801,035
|
|
|
$
|
928,841
|
|
|
$
|
975,303
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
$
|
196,368
|
|
|
$
|
203,061
|
|
|
$
|
203,911
|
|
|
$
|
208,855
|
|
|
$
|
229,343
|
|
Portion of rents representative of the interest factor
|
33,438
|
|
|
38,968
|
|
|
39,219
|
|
|
41,499
|
|
|
43,030
|
|
|||||
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes
|
27,841
|
|
|
27,507
|
|
|
29,790
|
|
|
32,851
|
|
|
31,610
|
|
|||||
Total fixed charges
|
$
|
257,647
|
|
|
$
|
269,536
|
|
|
$
|
272,920
|
|
|
$
|
283,205
|
|
|
$
|
303,983
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
(2)
|
3.24
|
|
2.71
|
|
2.94
|
|
3.28
|
|
3.21
|
(1)
|
Interest expense includes both financing interest expense and other interest expense.
|
(2)
|
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 rent expense as the representative portion of interest.
|
Subsidiary Name
|
Country or state of incorporation
|
Adrema Leasing Corporation
|
Delaware
|
AIT Quest Trustee Ltd
|
UK
|
Alternative Mail & Parcel Investments Limited
|
UK
|
Andean Enterprises, Inc.
|
Panama
|
B. Williams Funding Corp.
|
Delaware
|
B. Williams Holding Corp.
|
Delaware
|
Canadian Office Services (Toronto) Limited
|
Canada
|
Digital Cement Co.
|
Canada
|
Digital Cement Inc.
|
Delaware
|
Elmcroft Road Realty Corporation
|
Connecticut
|
Emtex Limited
|
UK
|
Emtex Software, Inc.
|
Canada
|
Encom Europe Limited
|
UK
|
Factor Humano y Cadena de Personal
|
Mexico
|
FSL Holdings Inc.
|
Connecticut
|
FSL Risk Managers Inc.
|
New York
|
Group 1 Software China Ltd.
|
Hong Kong
|
Harvey Company, L.L.C
|
Delaware
|
Historic Boardwalk Hall, L.L.C.
|
Delaware
|
Horizon Management AB
|
Sweden
|
Horizon Scandinavia AB
|
Sweden
|
Ibis Consulting, Inc.
|
Rhode Island
|
Imagitas Security Corporation
|
Massachusetts
|
Imagitas, Inc.
|
Delaware
|
Mag Systèmes SAS
|
France
|
MapInfo Realty LLC
|
New York
|
PB Australia Funding Pty. Limited
|
Australia
|
PB Equipment Management Inc.
|
Delaware
|
PB European UK LLC
|
Delaware
|
PB Forms, Inc.
|
Nebraska
|
PB Historic Renovation LLC
|
Delaware
|
PB Miles Inc.
|
Delaware
|
PB Nova Scotia Holdings II ULC
|
Canada
|
PB Nova Scotia Holdings ULC
|
Canada
|
PB Nova Scotia V ULC
|
Canada
|
PB Nova Scotia VI ULC
|
Canada
|
PB Nova Scotia II ULC
|
Canada
|
PB Nova Scotia LP
|
Delaware
|
PB Partnership Financing Inc.
|
Delaware
|
PB Professional Services Inc.
|
Delaware
|
PBDorm Ireland Limited
|
Ireland
|
Pitney Bowes Asterion Direct SAS
|
France
|
Pitney Bowes (Asia Pacific) Pte. Ltd
|
Singapore
|
Pitney Bowes (Dormant) Pte Ltd.
|
Singapore
|
Pitney Bowes (Malaysia) Sdn Bhd
|
Malaysia
|
Pitney Bowes (Singapore) Pte Ltd.
|
Singapore
|
Pitney Bowes (Switzerland) AG
|
Switzerland
|
Pitney Bowes (Thailand) Limited
|
Thailand
|
Pitney Bowes Asterion SAS
|
France
|
Pitney Bowes Australia FAS Pty. Limited
|
Australia
|
Pitney Bowes Australia Pty Limited
|
Australia
|
Pitney Bowes Austria Ges.m.b.H
|
Austria
|
Pitney Bowes Batsumi Enterprise (Pty) Ltd.
|
South Africa
|
Pitney Bowes Belgium NV
|
Belgium
|
Pitney Bowes Canada LP
|
Canada
|
Pitney Bowes China Inc.
|
Delaware
|
Pitney Bowes Credit Australia Limited
|
Australia
|
Pitney Bowes Cross Border Services, Inc
|
Delaware
|
Pitney Bowes Danmark A/S (formerly Haro Systemer AS)
|
Denmark
|
Pitney Bowes de Mexico, S.A. de C.V.
|
Mexico
|
Pitney Bowes Deutschland GmbH
|
Germany
|
Pitney Bowes Document Messaging Technologies Limited (formerly Bell & Howell Limited)
|
UK
|
Pitney Bowes Espana, S.A.
|
Spain
|
Pitney Bowes Europe Limited
|
UK
|
Pitney Bowes Finance Ireland Limited
|
Ireland
|
Pitney Bowes Finance Limited (formerly Pitney Bowes Finance plc)
|
UK
|
Pitney Bowes Global Financial Services LLC
|
Delaware
|
Pitney Bowes Global Limited
|
UK
|
Pitney Bowes Global LLC
|
Delaware
|
Pitney Bowes Government Solutions, Inc.
|
Delaware
|
Pitney Bowes Holdco Limited
|
UK
|
Pitney Bowes Holding SNC
|
France
|
Pitney Bowes Holdings B.V.
|
Netherlands
|
Pitney Bowes Holdings Denmark ApS
|
Denmark
|
Pitney Bowes Holdings Limited
|
UK
|
Pitney Bowes Hong Kong Limited
|
Hong Kong
|
Pitney Bowes India Inc.
|
Delaware
|
Pitney Bowes India Private Limited
|
India
|
Pitney Bowes International Funding
|
Ireland
|
Pitney Bowes International Holdings, Inc.
|
Delaware
|
Pitney Bowes International Mail Services Limited
|
UK
|
Pitney Bowes Ireland Limited
|
Ireland
|
Pitney Bowes Italia S.r.l.
|
Italy
|
Pitney Bowes Japan KK
|
Japan
|
Pitney Bowes Korea Ltd.
|
Korea
|
Pitney Bowes Limited
|
UK
|
Pitney Bowes Luxembourg Holding II S.a.r.l.
|
Luxembourg
|
Pitney Bowes Luxembourg Holding S.a.r.l.
|
Luxembourg
|
Pitney Bowes Luxembourg SARL
|
Luxembourg
|
Pitney Bowes Mail and Messaging Systems (Shanghai) Co., Ltd.
|
Shanghai
|
Pitney Bowes Management Services Belgium, NV
|
Belgium
|
Pitney Bowes Management Services Canada, Inc Services de Gestion Pitney Bowes Canada, Inc.
|
Canada
|
Pitney Bowes Management Services Denmark, A/S
|
Denmark
|
Pitney Bowes Management Services Deutschland GmbH
|
Germany
|
Pitney Bowes Management Services Italia S.r.l.
|
Italy
|
Pitney Bowes Management Services Limited
|
UK
|
Pitney Bowes Management Services Netherlands, B.V.
|
Netherlands
|
Pitney Bowes Management Services Norway A.S.
|
Norway
|
Pitney Bowes Management Services Sweden AB
|
Sweden
|
Pitney Bowes Management Services, Inc.
|
Delaware
|
Pitney Bowes MapInfo Business Applications Limited (formerly Southbank Systems Limited)
|
UK
|
Pitney Bowes MapInfo GDC Limited (formerly Graphical Data Capture Limited)
|
UK
|
Pitney Bowes MapInfo Scotland Limited (formerly Moleseye Limited)
|
UK
|
Pitney Bowes Middle East FZ-LLC
|
Dubai
|
Pitney Bowes Netherlands B.V.
|
Netherlands
|
Pitney Bowes New Zealand Limited
|
New Zealand
|
Pitney Bowes Norge AS
|
Norway
|
Pitney Bowes Nova Scotia ULC
|
Canada
|
Pitney Bowes of Canada Ltd. - Pitney Bowes du Canada Ltee
|
Canada
|
Pitney Bowes Oy
|
Finland
|
Pitney Bowes Polska Sp. z.o.o.
|
Poland
|
Pitney Bowes Portugal Sociedade Unipessoal, Lda.
|
Portugal
|
Pitney Bowes Presort Services, Inc. (formerly PSI Group, Inc.)
|
Delaware
|
Pitney Bowes Properties Inc.
|
Connecticut
|
Pitney Bowes Puerto Rico, Inc.
|
Puerto Rico
|
Pitney Bowes SA (Pty) Ltd.
|
South Africa
|
Pitney Bowes SAS
|
France
|
Pitney Bowes Semco Equipamentos E Servicos Ltda
|
Brazil
|
Pitney Bowes Servicios, S.A. de C.V.
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Mexico
|
Pitney Bowes Shelton Realty Inc.
|
Connecticut
|
Pitney Bowes Software (Beijing) Ltd
|
China
|
Pitney Bowes Software Canada Inc.
|
Canada
|
Pitney Bowes Software GmbH
|
Germany
|
Pitney Bowes Software Europe Limited
|
UK
|
Pitney Bowes Software Europe Holdco Limited
|
UK
|
Pitney Bowes Software Holdings Limited
|
UK
|
Pitney Bowes Software Inc.
|
Delaware
|
Pitney Bowes Software India Private Limited
|
India
|
Pitney Bowes Software K. K.
|
Japan
|
Pitney Bowes Software Latin America Inc.
|
Delaware
|
Pitney Bowes Software Limited
|
UK
|
Pitney Bowes Software Private Limited
|
India
|
Pitney Bowes Software Pte Ltd
|
Singapore
|
Pitney Bowes Software Pty Ltd
|
Australia
|
Pitney Bowes Software SAS
|
France
|
Pitney Bowes Svenska Aktiebolag
|
Sweden
|
Pitney Bowes UK LP
|
UK
|
PitneyWorks.com Inc.
|
Delaware
|
PitneyWorks.com L.L.C.
|
Delaware
|
Portrait International, Inc.
|
Ohio
|
Portrait Million Handshakes AS
|
Norway
|
Portrait Software International Ltd.
|
UK
|
Portrait Software Limited (formally Portrait Software plc)
|
UK
|
Portrait Software UK Ltd
|
UK
|
Print, Inc.
|
Washington
|
PrintValue Solutions, Inc.
|
Arizona
|
Quadstone Paramics Ltd
|
Scotland
|
Quadstone Trustee Company Ltd
|
Scotland
|
Services Integrations Group, L.P.
|
Delaware
|
SIG-GP, L.L.C.
|
Delaware
|
Technopli SARL
|
France
|
The Pitney Bowes Bank, Inc.
|
Utah
|
Volly LLC
|
Delaware
|
Wheeler Insurance, Ltd.
|
Vermont
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1.
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I have reviewed this Annual Report on Form 10-K of Pitney Bowes Inc.;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Marc B. Lautenbach
|
|
|
|
|
Marc B. Lautenbach
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Pitney Bowes Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Michael Monahan
|
|
|
|
Michael Monahan
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Marc B. Lautenbach
|
|
|
|
Marc B. Lautenbach
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Michael Monahan
|
|
|
|
Michael Monahan
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|