Incorporated in Delaware
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I.R.S. Employer Identification No. 06-0495050
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3001 Summer Street, Stamford, CT 06926
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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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declining physical mail volumes
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•
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competitive factors, including pricing pressures, technological developments and introduction of new products and services by competitors
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•
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our success in developing and transitioning to more digital-based products and services and the market’s acceptance of these new products and services
|
•
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the success of our investment in rebranding the company to build the market awareness to create new demand for our businesses
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•
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our ability to gain product approval in new markets where regulatory approval is required
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•
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changes in postal or banking regulations
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•
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the continued availability and security of key information systems
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•
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our ability to successfully implement a new ERP system without significant disruption to existing operations
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•
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third-party suppliers' ability to provide product components, assemblies or inventories
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•
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our success at managing the relationships with our outsource providers, including the costs of outsourcing functions and operations not central to our business
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•
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loss of some of our largest clients or business partners in our Digital Commerce Solutions segment
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•
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the cost to comply with current and any changes in information security requirements and privacy laws
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•
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intellectual property infringement claims
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•
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our success at managing customer credit risk
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•
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significant changes in pension, health care and retiree medical costs
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•
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macroeconomic factors, including global and regional business conditions that adversely impact customer demand, access to capital markets at reasonable costs, changes in interest rates and foreign currency exchange rates
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•
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income tax adjustments or other regulatory levies for prior audit years and changes in tax laws, rulings or regulations
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•
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a disruption of our businesses due to changes in international or national political conditions, including the use of the mail for transmitting harmful biological agents or other terrorist attacks
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•
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acts of nature
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Name
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Age
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Title
|
|
Executive
Officer Since
|
Marc B. Lautenbach
|
|
53
|
|
President and Chief Executive Officer
|
|
2012
|
Daniel J. Goldstein
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|
53
|
|
Executive Vice President and Chief Legal and Compliance Officer
|
|
2010
|
Abby F. Kohnstamm
|
|
61
|
|
Executive Vice President and Chief Marketing Officer
|
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2013
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Michael Monahan
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|
54
|
|
Executive Vice President, Chief Operating Officer and Chief Financial Officer
(1)
|
|
2005
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Roger J. Pilc
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|
47
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|
Executive Vice President and Chief Innovation Officer
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|
2013
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Mark L. Shearer
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|
58
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Executive Vice President and President, Pitney Bowes SMB Mailing Solutions
|
|
2013
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Johnna G. Torsone
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|
64
|
|
Executive Vice President and Chief Human Resources Officer
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|
1993
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Mark F. Wright
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|
57
|
|
Executive Vice President and President, Pitney Bowes Digital Commerce Solutions
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|
2013
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(1)
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Mr. Monahan was appointed to the newly created position of Chief Operating Officer effective February 9, 2015. He will continue his role as Chief Financial Officer.
|
•
|
the loss of key employees or clients of businesses acquired or divested;
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•
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significant charges to earnings for employee severance and other restructuring costs, goodwill and asset impairments and legal, accounting and financial advisory fees;
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•
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difficulties in achieving anticipated benefits or synergies from acquisitions and divestitures;
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•
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difficulties in integrating newly acquired businesses and operations, including combining product and service offerings and entering new markets, or reducing fixed costs previously associated with divested businesses; and
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•
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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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the cleanup of contaminated sites;
|
•
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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.
|
(1)
|
The sum of earnings per share may not equal the totals due to rounding.
|
Revenue
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
||||||||
Equipment sales
|
$
|
770
|
|
|
$
|
868
|
|
|
$
|
841
|
|
|
(11
|
)%
|
|
3
|
%
|
Supplies
|
300
|
|
|
286
|
|
|
279
|
|
|
5
|
%
|
|
2
|
%
|
|||
Software
|
430
|
|
|
398
|
|
|
413
|
|
|
8
|
%
|
|
(3
|
)%
|
|||
Rentals
|
485
|
|
|
512
|
|
|
541
|
|
|
(5
|
)%
|
|
(5
|
)%
|
|||
Financing
|
433
|
|
|
449
|
|
|
481
|
|
|
(4
|
)%
|
|
(7
|
)%
|
|||
Support services
|
625
|
|
|
647
|
|
|
675
|
|
|
(3
|
)%
|
|
(4
|
)%
|
|||
Business services
|
779
|
|
|
631
|
|
|
594
|
|
|
23
|
%
|
|
6
|
%
|
|||
Total revenue
|
$
|
3,822
|
|
|
$
|
3,791
|
|
|
$
|
3,824
|
|
|
1
|
%
|
|
(1
|
)%
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31,
|
|||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
$
|
|
% of revenue
|
|
$
|
|
% of revenue
|
|
$
|
|
% of revenue
|
|||||||||
Cost of equipment sales
|
$
|
366
|
|
|
47.5
|
%
|
|
$
|
423
|
|
|
48.7
|
%
|
|
$
|
378
|
|
|
45.0
|
%
|
Cost of supplies
|
94
|
|
|
31.2
|
%
|
|
89
|
|
|
31.3
|
%
|
|
86
|
|
|
30.7
|
%
|
|||
Cost of software
|
124
|
|
|
28.8
|
%
|
|
111
|
|
|
27.8
|
%
|
|
115
|
|
|
28.0
|
%
|
|||
Cost of rentals
|
97
|
|
|
20.1
|
%
|
|
100
|
|
|
19.6
|
%
|
|
110
|
|
|
20.3
|
%
|
|||
Financing interest expense
|
78
|
|
|
18.1
|
%
|
|
78
|
|
|
17.3
|
%
|
|
77
|
|
|
16.1
|
%
|
|||
Cost of support services
|
377
|
|
|
60.3
|
%
|
|
400
|
|
|
61.9
|
%
|
|
420
|
|
|
62.2
|
%
|
|||
Cost of business services
|
545
|
|
|
70.0
|
%
|
|
450
|
|
|
71.3
|
%
|
|
396
|
|
|
66.7
|
%
|
|||
Total cost of revenue
|
$
|
1,681
|
|
|
44.0
|
%
|
|
$
|
1,651
|
|
|
43.5
|
%
|
|
$
|
1,582
|
|
|
41.4
|
%
|
|
Revenue
|
||||||||||||||||
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
||||||||
North America Mailing
|
$
|
1,492
|
|
|
$
|
1,555
|
|
|
$
|
1,644
|
|
|
(4
|
)%
|
|
(5
|
)%
|
International Mailing
|
573
|
|
|
603
|
|
|
602
|
|
|
(5
|
)%
|
|
—
|
%
|
|||
Small & Medium Business Solutions
|
2,065
|
|
|
2,158
|
|
|
2,246
|
|
|
(4
|
)%
|
|
(4
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Production Mail
|
462
|
|
|
512
|
|
|
480
|
|
|
(10
|
)%
|
|
6
|
%
|
|||
Presort Services
|
457
|
|
|
430
|
|
|
430
|
|
|
6
|
%
|
|
—
|
%
|
|||
Enterprise Business Solutions
|
919
|
|
|
942
|
|
|
910
|
|
|
(2
|
)%
|
|
3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Digital Commerce Solutions
|
838
|
|
|
691
|
|
|
668
|
|
|
21
|
%
|
|
4
|
%
|
|||
Total
|
$
|
3,822
|
|
|
$
|
3,791
|
|
|
$
|
3,824
|
|
|
1
|
%
|
|
(1
|
)%
|
|
EBIT
|
||||||||||||||||
|
Year Ended December 31,
|
|
% change
|
||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
||||||||
North America Mailing
|
$
|
642
|
|
|
$
|
641
|
|
|
$
|
647
|
|
|
—
|
%
|
|
(1
|
)%
|
International Mailing
|
89
|
|
|
71
|
|
|
76
|
|
|
24
|
%
|
|
(6
|
)%
|
|||
Small & Medium Business Solutions
|
731
|
|
|
712
|
|
|
723
|
|
|
3
|
%
|
|
(1
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Production Mail
|
48
|
|
|
55
|
|
|
49
|
|
|
(14
|
)%
|
|
12
|
%
|
|||
Presort Services
|
98
|
|
|
83
|
|
|
106
|
|
|
18
|
%
|
|
(22
|
)%
|
|||
Enterprise Business Solutions
|
146
|
|
|
138
|
|
|
155
|
|
|
5
|
%
|
|
(11
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Digital Commerce Solutions
|
84
|
|
|
55
|
|
|
53
|
|
|
53
|
%
|
|
3
|
%
|
|||
Total
|
$
|
961
|
|
|
$
|
905
|
|
|
$
|
931
|
|
|
6
|
%
|
|
(3
|
)%
|
|
Year Ended December 31,
|
|
Change
|
||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
||||||||||
Net cash provided by operating activities
|
$
|
655
|
|
|
$
|
625
|
|
|
$
|
660
|
|
|
$
|
30
|
|
|
$
|
(35
|
)
|
Net cash (used in) provided by investing activities
|
(143
|
)
|
|
251
|
|
|
(87
|
)
|
|
(394
|
)
|
|
338
|
|
|||||
Net cash used in financing activities
|
(312
|
)
|
|
(868
|
)
|
|
(519
|
)
|
|
556
|
|
|
(349
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(29
|
)
|
|
(13
|
)
|
|
3
|
|
|
(16
|
)
|
|
(16
|
)
|
|||||
Change in cash and cash equivalents
|
$
|
171
|
|
|
$
|
(5
|
)
|
|
$
|
57
|
|
|
$
|
176
|
|
|
$
|
(62
|
)
|
|
Payments due in
|
||||||||||||||||||
|
Total
|
|
2015
|
|
2016-17
|
|
2018-19
|
|
After 2019
|
||||||||||
Debt maturities
|
$
|
3,227
|
|
|
$
|
325
|
|
|
$
|
836
|
|
|
$
|
900
|
|
|
$
|
1,166
|
|
Interest payments on debt
(1)
|
1,458
|
|
|
159
|
|
|
261
|
|
|
159
|
|
|
879
|
|
|||||
Non-cancelable operating lease obligations
|
211
|
|
|
47
|
|
|
62
|
|
|
34
|
|
|
68
|
|
|||||
Purchase obligations (2)
|
198
|
|
|
156
|
|
|
38
|
|
|
4
|
|
|
—
|
|
|||||
Pension plan contributions (3)
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Retiree medical payments (4)
|
193
|
|
|
22
|
|
|
42
|
|
|
40
|
|
|
89
|
|
|||||
Total
|
$
|
5,310
|
|
|
$
|
732
|
|
|
$
|
1,239
|
|
|
$
|
1,137
|
|
|
$
|
2,202
|
|
(1)
|
Assumes all debt is held to maturity. Certain notes permit us to redeem, or the bondholders to require us to redeem, some or all of the applicable outstanding notes at par plus accrued interest before the scheduled maturity date.
|
(2)
|
Includes 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)
|
Represents the amount of contributions we anticipate making to our pension plans during 2015; 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.
|
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
|
|
13,323,075
|
|
|
$31.14
|
|
19,715,336
|
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
13,323,075
|
|
|
$31.14
|
|
19,715,336
|
|
(a)
|
1. Financial statements - see "Index to Consolidated Financial Statements and Supplemental Data" on
page 35
of this Form 10-K.
|
Reg. S-K
exhibits
|
Description
|
Status or incorporation by reference
|
10(i) *
|
Pitney Bowes Inc. Deferred Incentive Savings Plan as amended and restated effective January 1, 2009
|
Incorporated by reference to Exhibit 10(h) to Form 10-K filed with the Commission on February 26, 2009 (Commission file number 1-3579)
|
10(j) *
|
Pitney Bowes Inc. 1998 U.K. S.A.Y.E. Stock Option Plan
|
Incorporated by reference to Annex II to the Definitive Proxy Statement for the 2006 Annual Meeting of Stockholders filed with the Commission on March 23, 2006 (Commission file number 1-3579)
|
10(k) *
|
Form of Long Term Incentive Award Agreement
|
Incorporated by reference to Exhibit 10(k) to Form 10-K filed with the Commission on February 21, 2014 (Commission file number 1-3579)
|
10(l) *
|
Compensation arrangement for Vicki O'Meara dated June 1, 2010
|
Incorporated by reference to Exhibit 10(a) to Form 10-Q filed with the Commission on August 5, 2010 (Commission file number 1-3579)
|
12
|
Computation of ratio of earnings to fixed charges
|
Exhibit 12
|
21
|
Subsidiaries of the registrant
|
Exhibit 21
|
23
|
Consent of experts and counsel
|
Exhibit 23
|
31.1
|
Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
Exhibit 31.1
|
31.2
|
Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
Exhibit 31.2
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350
|
Exhibit 32.1
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350
|
Exhibit 32.2
|
101.INS
|
XBRL Report Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Marc B. Lautenbach
Marc B. Lautenbach
|
|
President and Chief Executive Officer - Director
|
|
February 20, 2015
|
/s/ Michael Monahan
Michael Monahan
|
|
Executive Vice President, Chief Operating Officer and Chief Financial Officer (Principal Financial Officer)
|
|
February 20, 2015
|
/s/ Steven J. Green
Steven J. Green
|
|
Vice President-Finance and Chief Accounting Officer (Principal Accounting Officer)
|
|
February 20, 2015
|
/s/ Michael I. Roth
Michael I. Roth
|
|
Non-Executive Chairman - Director
|
|
February 20, 2015
|
/s/ Linda G. Alvarado
Linda G. Alvarado
|
|
Director
|
|
February 20, 2015
|
/s/ Anne M. Busquet
Anne M. Busquet
|
|
Director
|
|
February 20, 2015
|
/s/ Roger Fradin
Roger Fradin
|
|
Director
|
|
February 20, 2015
|
/s/ Anne Sutherland Fuchs
Anne Sutherland Fuchs
|
|
Director
|
|
February 20, 2015
|
/s/ S. Douglas Hutcheson
S. Douglas Hutcheson
|
|
Director
|
|
February 20, 2015
|
/s/ Eduardo R. Menascé
Eduardo R. Menascé
|
|
Director
|
|
February 20, 2015
|
/s/ David L. Shedlarz
David L. Shedlarz
|
|
Director
|
|
February 20, 2015
|
/s/ David B. Snow, Jr.
David B. Snow, Jr.
|
|
Director
|
|
February 20, 2015
|
|
|
Page Number
|
Consolidated Financial Statements of Pitney Bowes Inc.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Financial Statement Schedule
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Revenue:
|
|
|
|
|
|
|
|
||||
Equipment sales
|
$
|
770,371
|
|
|
$
|
867,593
|
|
|
$
|
840,748
|
|
Supplies
|
300,040
|
|
|
285,730
|
|
|
279,104
|
|
|||
Software
|
429,743
|
|
|
398,664
|
|
|
412,762
|
|
|||
Rentals
|
484,629
|
|
|
512,493
|
|
|
540,689
|
|
|||
Financing
|
432,859
|
|
|
448,906
|
|
|
481,177
|
|
|||
Support services
|
625,135
|
|
|
646,657
|
|
|
675,246
|
|
|||
Business services
|
778,727
|
|
|
631,292
|
|
|
593,987
|
|
|||
Total revenue
|
3,821,504
|
|
|
3,791,335
|
|
|
3,823,713
|
|
|||
Costs and expenses:
|
|
|
|
|
|
|
|
||||
Cost of equipment sales
|
365,724
|
|
|
422,580
|
|
|
378,136
|
|
|||
Cost of supplies
|
93,675
|
|
|
89,365
|
|
|
85,766
|
|
|||
Cost of software
|
123,760
|
|
|
110,653
|
|
|
115,388
|
|
|||
Cost of rentals
|
97,338
|
|
|
100,335
|
|
|
109,493
|
|
|||
Financing interest expense
|
78,562
|
|
|
77,719
|
|
|
77,429
|
|
|||
Cost of support services
|
377,003
|
|
|
400,038
|
|
|
419,891
|
|
|||
Cost of business services
|
544,729
|
|
|
449,932
|
|
|
396,295
|
|
|||
Selling, general and administrative
|
1,378,400
|
|
|
1,420,096
|
|
|
1,489,735
|
|
|||
Research and development
|
109,931
|
|
|
110,412
|
|
|
114,250
|
|
|||
Restructuring charges and asset impairments, net
|
84,560
|
|
|
84,344
|
|
|
17,176
|
|
|||
Interest expense
|
95,291
|
|
|
114,740
|
|
|
115,228
|
|
|||
Interest income
|
(4,403
|
)
|
|
(5,472
|
)
|
|
(7,982
|
)
|
|||
Other expense, net
|
45,738
|
|
|
32,639
|
|
|
1,138
|
|
|||
Total costs and expenses
|
3,390,308
|
|
|
3,407,381
|
|
|
3,311,943
|
|
|||
Income from continuing operations before income taxes
|
431,196
|
|
|
383,954
|
|
|
511,770
|
|
|||
Provision for income taxes
|
112,815
|
|
|
77,967
|
|
|
114,287
|
|
|||
Income from continuing operations
|
318,381
|
|
|
305,987
|
|
|
397,483
|
|
|||
Income (loss) from discontinued operations, net of tax
|
33,749
|
|
|
(144,777
|
)
|
|
66,056
|
|
|||
Net income
|
352,130
|
|
|
161,210
|
|
|
463,539
|
|
|||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
18,375
|
|
|
18,375
|
|
|
18,376
|
|
|||
Net income - Pitney Bowes Inc.
|
$
|
333,755
|
|
|
$
|
142,835
|
|
|
$
|
445,163
|
|
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
||||
Net income from continuing operations
|
$
|
300,006
|
|
|
$
|
287,612
|
|
|
$
|
379,107
|
|
Income (loss) from discontinued operations, net of tax
|
33,749
|
|
|
(144,777
|
)
|
|
66,056
|
|
|||
Net income - Pitney Bowes Inc.
|
$
|
333,755
|
|
|
$
|
142,835
|
|
|
$
|
445,163
|
|
Basic earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
1.49
|
|
|
$
|
1.43
|
|
|
$
|
1.89
|
|
Discontinued operations
|
0.17
|
|
|
(0.72
|
)
|
|
0.33
|
|
|||
Net income - Pitney Bowes Inc.
|
$
|
1.65
|
|
|
$
|
0.71
|
|
|
$
|
2.22
|
|
Diluted earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
1.47
|
|
|
$
|
1.42
|
|
|
$
|
1.88
|
|
Discontinued operations
|
0.17
|
|
|
(0.71
|
)
|
|
0.33
|
|
|||
Net income - Pitney Bowes Inc.
|
$
|
1.64
|
|
|
$
|
0.70
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
||||||
Dividends declared per share of common stock
|
$
|
0.75
|
|
|
$
|
0.9375
|
|
|
$
|
1.50
|
|
(1)
|
The sum of the earnings per share amounts may not equal the totals due to rounding.
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
352,130
|
|
|
$
|
161,210
|
|
|
$
|
463,539
|
|
Less: Preferred stock dividends attributable to noncontrolling interests
|
18,375
|
|
|
18,375
|
|
|
18,376
|
|
|||
Net income - Pitney Bowes Inc.
|
333,755
|
|
|
142,835
|
|
|
445,163
|
|
|||
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
||||||
Foreign currency translations
|
(93,368
|
)
|
|
(46,236
|
)
|
|
(2,702
|
)
|
|||
Net unrealized gain on cash flow hedges, net of tax of $1,080, $894 and $429, respectively
|
1,691
|
|
|
1,397
|
|
|
661
|
|
|||
Net unrealized gain (loss) on investment securities, net of tax of $2,775, $(3,689) and $81, respectively
|
4,735
|
|
|
(6,282
|
)
|
|
126
|
|
|||
Adjustments to pension and postretirement plans, net of tax of $(106,336), $64,316 and $(38,934), respectively
|
(212,818
|
)
|
|
122,023
|
|
|
(70,232
|
)
|
|||
Amortization of pension and postretirement costs, net of tax of $15,643, $19,228 and $21,876, respectively
|
28,160
|
|
|
35,755
|
|
|
52,579
|
|
|||
Other comprehensive (loss) income
|
(271,600
|
)
|
|
106,657
|
|
|
(19,568
|
)
|
|||
Comprehensive income - Pitney Bowes Inc.
|
$
|
62,155
|
|
|
$
|
249,492
|
|
|
$
|
425,595
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
352,130
|
|
|
$
|
161,210
|
|
|
$
|
463,539
|
|
Restructuring payments
|
(56,162
|
)
|
|
(59,520
|
)
|
|
(74,718
|
)
|
|||
Special pension plan contributions
|
—
|
|
|
—
|
|
|
(95,000
|
)
|
|||
Tax and other payments on sale of businesses and leveraged lease assets
|
—
|
|
|
(75,545
|
)
|
|
(114,128
|
)
|
|||
Net tax receipts from other investments
|
5,737
|
|
|
—
|
|
|
—
|
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Restructuring charges and asset impairments
|
83,466
|
|
|
86,175
|
|
|
33,351
|
|
|||
Goodwill impairment
|
—
|
|
|
101,415
|
|
|
18,315
|
|
|||
Depreciation and amortization
|
198,088
|
|
|
211,243
|
|
|
255,556
|
|
|||
(Gain) loss on sale of businesses
|
(28,151
|
)
|
|
42,450
|
|
|
—
|
|
|||
Gain on sale of leveraged lease assets, net of tax
|
—
|
|
|
—
|
|
|
(12,886
|
)
|
|||
Stock-based compensation
|
17,446
|
|
|
14,921
|
|
|
18,227
|
|
|||
Proceeds from settlement of derivative instruments
|
—
|
|
|
8,059
|
|
|
—
|
|
|||
Deferred tax provision (benefit)
|
1,454
|
|
|
(33,770
|
)
|
|
(92,999
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||
Decrease (increase) in accounts receivable
|
45,046
|
|
|
58,980
|
|
|
(3,068
|
)
|
|||
Decrease in finance receivables
|
119,668
|
|
|
123,587
|
|
|
147,165
|
|
|||
Decrease (increase) in inventories
|
9,104
|
|
|
67,188
|
|
|
(599
|
)
|
|||
(Increase) decrease in other current assets and prepayments
|
(10,106
|
)
|
|
3,172
|
|
|
(3,131
|
)
|
|||
Decrease in accounts payable and accrued liabilities
|
(51,080
|
)
|
|
(95,843
|
)
|
|
(47,023
|
)
|
|||
(Decrease) increase in current and non-current income taxes
|
(52,080
|
)
|
|
6,322
|
|
|
116,013
|
|
|||
(Decrease) increase in advance billings
|
(18,695
|
)
|
|
(16,450
|
)
|
|
3,767
|
|
|||
Other, net
|
39,661
|
|
|
21,230
|
|
|
47,807
|
|
|||
Net cash provided by operating activities
|
655,526
|
|
|
624,824
|
|
|
660,188
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Purchases of available-for-sale investment securities
|
(670,573
|
)
|
|
(348,316
|
)
|
|
(304,191
|
)
|
|||
Proceeds from sales/maturities of available-for-sale investment securities
|
622,727
|
|
|
354,302
|
|
|
295,470
|
|
|||
Capital expenditures
|
(180,556
|
)
|
|
(137,512
|
)
|
|
(176,586
|
)
|
|||
Proceeds from sale of businesses
|
102,392
|
|
|
389,680
|
|
|
—
|
|
|||
Proceeds from sale of leveraged lease assets
|
—
|
|
|
—
|
|
|
105,506
|
|
|||
Reserve account deposits
|
(15,666
|
)
|
|
(20,104
|
)
|
|
1,636
|
|
|||
Other investing activities
|
(1,585
|
)
|
|
12,691
|
|
|
(8,567
|
)
|
|||
Net cash (used in) provided by investing activities
|
(143,261
|
)
|
|
250,741
|
|
|
(86,732
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
508,525
|
|
|
411,613
|
|
|
340,000
|
|
|||
Principal payments of long-term obligations
|
(599,850
|
)
|
|
(1,079,207
|
)
|
|
(550,000
|
)
|
|||
Proceeds from issuance of common stock
|
7,188
|
|
|
6,753
|
|
|
9,314
|
|
|||
Dividends paid to stockholders
|
(151,611
|
)
|
|
(188,846
|
)
|
|
(300,578
|
)
|
|||
Dividends paid to noncontrolling interests
|
(18,375
|
)
|
|
(18,375
|
)
|
|
(18,376
|
)
|
|||
Common stock repurchases
|
(50,003
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of subsidiary shares from noncontrolling interest
|
(7,718
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used in financing activities
|
(311,844
|
)
|
|
(868,062
|
)
|
|
(519,640
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(29,082
|
)
|
|
(12,973
|
)
|
|
3,222
|
|
|||
Increase (decrease) in cash and cash equivalents
|
171,339
|
|
|
(5,470
|
)
|
|
57,038
|
|
|||
Cash and cash equivalents at beginning of period
|
907,806
|
|
|
913,276
|
|
|
856,238
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,079,145
|
|
|
$
|
907,806
|
|
|
$
|
913,276
|
|
Cash interest paid
|
$
|
180,250
|
|
|
$
|
199,505
|
|
|
$
|
190,892
|
|
Cash income tax payments, net of refunds
|
$
|
203,193
|
|
|
$
|
224,432
|
|
|
$
|
206,285
|
|
|
Preferred
stock
|
|
Preference
stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Treasury stock
|
|
Total equity
|
||||||||||||||||
Balance at December 31, 2011
|
$
|
4
|
|
|
$
|
659
|
|
|
$
|
323,338
|
|
|
$
|
240,584
|
|
|
$
|
4,600,217
|
|
|
$
|
(661,645
|
)
|
|
$
|
(4,542,143
|
)
|
|
$
|
(38,986
|
)
|
Retained earnings adjustment (see Note 14)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,773
|
|
|
—
|
|
|
—
|
|
|
16,773
|
|
||||||||
Adjusted balance December 31, 2011
|
4
|
|
|
659
|
|
|
323,338
|
|
|
240,584
|
|
|
4,616,990
|
|
|
(661,645
|
)
|
|
(4,542,143
|
)
|
|
(22,213
|
)
|
||||||||
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
445,163
|
|
|
—
|
|
|
—
|
|
|
445,163
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,568
|
)
|
|
—
|
|
|
(19,568
|
)
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
|
|
4,761,575
|
|
|
(681,213
|
)
|
|
(4,500,795
|
)
|
|
127,404
|
|
||||||||
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,835
|
|
|
—
|
|
|
—
|
|
|
142,835
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,657
|
|
|
—
|
|
|
106,657
|
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(188,800
|
)
|
|
—
|
|
|
—
|
|
|
(188,800
|
)
|
||||||||
Preference
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
||||||||
Issuances of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,569
|
)
|
|
—
|
|
|
—
|
|
|
42,774
|
|
|
2,205
|
|
||||||||
Conversions to common stock
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(1,222
|
)
|
|
—
|
|
|
—
|
|
|
1,279
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
14,921
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,921
|
|
||||||||
Balance at December 31, 2013
|
4
|
|
|
591
|
|
|
323,338
|
|
|
196,977
|
|
|
4,715,564
|
|
|
(574,556
|
)
|
|
(4,456,742
|
)
|
|
205,176
|
|
||||||||
Net income - Pitney Bowes Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
333,755
|
|
|
—
|
|
|
—
|
|
|
333,755
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(271,600
|
)
|
|
—
|
|
|
(271,600
|
)
|
||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(151,567
|
)
|
|
—
|
|
|
—
|
|
|
(151,567
|
)
|
||||||||
Preference
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
||||||||
Issuances of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,081
|
)
|
|
—
|
|
|
—
|
|
|
28,697
|
|
|
1,616
|
|
||||||||
Conversions to common stock
|
(3
|
)
|
|
(43
|
)
|
|
—
|
|
|
(970
|
)
|
|
—
|
|
|
—
|
|
|
1,016
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
17,446
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,446
|
|
||||||||
Repurchase of subsidiary shares from noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,520
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,520
|
)
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,003
|
)
|
|
(50,003
|
)
|
||||||||
Balance at December 31, 2014
|
$
|
1
|
|
|
$
|
548
|
|
|
$
|
323,338
|
|
|
$
|
178,852
|
|
|
$
|
4,897,708
|
|
|
$
|
(846,156
|
)
|
|
$
|
(4,477,032
|
)
|
|
$
|
77,259
|
|
|
Revenues
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America Mailing
|
$
|
1,491,927
|
|
|
$
|
1,555,585
|
|
|
$
|
1,643,855
|
|
International Mailing
|
572,440
|
|
|
602,582
|
|
|
601,629
|
|
|||
Small & Medium Business Solutions
|
2,064,367
|
|
|
2,158,167
|
|
|
2,245,484
|
|
|||
|
|
|
|
|
|
|
|||||
Production Mail
|
462,199
|
|
|
511,544
|
|
|
480,718
|
|
|||
Presort Services
|
456,556
|
|
|
430,469
|
|
|
429,804
|
|
|||
Enterprise Business Solutions
|
918,755
|
|
|
942,013
|
|
|
910,522
|
|
|||
|
|
|
|
|
|
||||||
Digital Commerce Solutions
|
838,382
|
|
|
691,155
|
|
|
667,707
|
|
|||
Total revenue
|
$
|
3,821,504
|
|
|
$
|
3,791,335
|
|
|
$
|
3,823,713
|
|
|
|
|
|
|
|
||||||
Geographic Data:
|
|
|
|
|
|
||||||
United States
|
$
|
2,743,957
|
|
|
$
|
2,654,301
|
|
|
$
|
2,669,074
|
|
Outside United States
|
1,077,547
|
|
|
1,137,034
|
|
|
1,154,639
|
|
|||
Total
|
$
|
3,821,504
|
|
|
$
|
3,791,335
|
|
|
$
|
3,823,713
|
|
|
EBIT
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America Mailing
|
$
|
642,521
|
|
|
$
|
640,830
|
|
|
$
|
646,979
|
|
International Mailing
|
88,710
|
|
|
71,516
|
|
|
75,844
|
|
|||
Small & Medium Business Solutions
|
731,231
|
|
|
712,346
|
|
|
722,823
|
|
|||
|
|
|
|
|
|
||||||
Production Mail
|
47,543
|
|
|
55,000
|
|
|
48,981
|
|
|||
Presort Services
|
98,230
|
|
|
83,259
|
|
|
106,170
|
|
|||
Enterprise Business Solutions
|
145,773
|
|
|
138,259
|
|
|
155,151
|
|
|||
|
|
|
|
|
|
||||||
Digital Commerce Solutions
|
83,725
|
|
|
54,777
|
|
|
53,242
|
|
|||
Total EBIT
|
960,729
|
|
|
905,382
|
|
|
931,216
|
|
|||
Reconciling items:
|
|
|
|
|
|
|
|
||||
Interest, net
|
(169,450
|
)
|
|
(186,987
|
)
|
|
(184,675
|
)
|
|||
Unallocated corporate expenses
|
(229,785
|
)
|
|
(217,458
|
)
|
|
(216,457
|
)
|
|||
Restructuring charges and asset impairments, net
|
(84,560
|
)
|
|
(84,344
|
)
|
|
(17,176
|
)
|
|||
Other expense, net
|
(45,738
|
)
|
|
(32,639
|
)
|
|
(1,138
|
)
|
|||
Income from continuing operations before income taxes
|
$
|
431,196
|
|
|
$
|
383,954
|
|
|
$
|
511,770
|
|
|
Depreciation and amortization
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America Mailing
|
$
|
68,291
|
|
|
$
|
81,238
|
|
|
$
|
104,957
|
|
International Mailing
|
30,629
|
|
|
29,515
|
|
|
26,804
|
|
|||
Small & Medium Business Solutions
|
98,920
|
|
|
110,753
|
|
|
131,761
|
|
|||
|
|
|
|
|
|
||||||
Production Mail
|
7,740
|
|
|
15,740
|
|
|
12,227
|
|
|||
Presort Services
|
28,462
|
|
|
29,999
|
|
|
26,753
|
|
|||
Enterprise Business Solutions
|
36,202
|
|
|
45,739
|
|
|
38,980
|
|
|||
|
|
|
|
|
|
||||||
Digital Commerce Solutions
|
33,654
|
|
|
24,361
|
|
|
30,167
|
|
|||
Total for reportable segments
|
168,776
|
|
|
180,853
|
|
|
200,908
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Unallocated amount
|
29,312
|
|
|
14,052
|
|
|
16,785
|
|
|||
Discontinued operations
|
—
|
|
|
16,338
|
|
|
37,863
|
|
|||
Consolidated depreciation and amortization
|
$
|
198,088
|
|
|
$
|
211,243
|
|
|
$
|
255,556
|
|
|
Capital expenditures
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America Mailing
|
$
|
67,596
|
|
|
$
|
57,973
|
|
|
$
|
78,511
|
|
International Mailing
|
13,966
|
|
|
25,386
|
|
|
29,642
|
|
|||
Small & Medium Business Solutions
|
81,562
|
|
|
83,359
|
|
|
108,153
|
|
|||
|
|
|
|
|
|
||||||
Production Mail
|
801
|
|
|
2,875
|
|
|
12,339
|
|
|||
Presort Services
|
17,457
|
|
|
12,512
|
|
|
17,220
|
|
|||
Enterprise Business Solutions
|
18,258
|
|
|
15,387
|
|
|
29,559
|
|
|||
|
|
|
|
|
|
||||||
Digital Commerce Solutions
|
12,467
|
|
|
25,562
|
|
|
4,794
|
|
|||
Total for reportable segments
|
112,287
|
|
|
124,308
|
|
|
142,506
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Unallocated amount
|
68,269
|
|
|
4,876
|
|
|
1,231
|
|
|||
Discontinued operations
|
—
|
|
|
8,328
|
|
|
32,849
|
|
|||
Consolidated capital expenditures
|
$
|
180,556
|
|
|
$
|
137,512
|
|
|
$
|
176,586
|
|
|
Assets
|
||||||||||
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America Mailing
|
$
|
2,614,123
|
|
|
$
|
2,767,743
|
|
|
$
|
2,863,233
|
|
International Mailing
|
687,233
|
|
|
856,073
|
|
|
866,620
|
|
|||
Small & Medium Business Solutions
|
3,301,356
|
|
|
3,623,816
|
|
|
3,729,853
|
|
|||
|
|
|
|
|
|
||||||
Production Mail
|
266,831
|
|
|
305,428
|
|
|
386,338
|
|
|||
Presort Services
|
346,850
|
|
|
343,206
|
|
|
369,405
|
|
|||
Enterprise Business Solutions
|
613,681
|
|
|
648,634
|
|
|
755,743
|
|
|||
|
|
|
|
|
|
||||||
Digital Commerce Solutions
|
1,212,105
|
|
|
1,242,013
|
|
|
1,291,670
|
|
|||
Total for reportable segments
|
5,127,142
|
|
|
5,514,463
|
|
|
5,777,266
|
|
|||
Reconciliation to consolidated amount:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
1,079,145
|
|
|
907,806
|
|
|
913,276
|
|
|||
Short-term investments
|
32,121
|
|
|
31,128
|
|
|
36,611
|
|
|||
Other corporate assets
|
247,285
|
|
|
217,913
|
|
|
278,731
|
|
|||
Discontinued operations
|
—
|
|
|
101,398
|
|
|
854,007
|
|
|||
Consolidated assets
|
$
|
6,485,693
|
|
|
$
|
6,772,708
|
|
|
$
|
7,859,891
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||
|
PBMS
|
|
IMS
|
|
Nordic furniture business
|
|
DIS
|
|
Total
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,858
|
|
|
$
|
19,858
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) income from operations
|
$
|
(245
|
)
|
|
$
|
308
|
|
|
$
|
509
|
|
|
$
|
2,123
|
|
|
$
|
2,695
|
|
Gain on sale
|
2,778
|
|
|
1,994
|
|
|
—
|
|
|
24,733
|
|
|
29,505
|
|
|||||
Income before taxes
|
2,533
|
|
|
2,302
|
|
|
509
|
|
|
26,856
|
|
|
32,200
|
|
|||||
Tax (benefit) provision
|
(6,931
|
)
|
|
851
|
|
|
141
|
|
|
18,184
|
|
|
12,245
|
|
|||||
Net income
|
$
|
9,464
|
|
|
$
|
1,451
|
|
|
$
|
368
|
|
|
$
|
8,672
|
|
|
$
|
19,955
|
|
Capital Services, net of tax
|
|
|
|
|
|
|
|
|
13,794
|
|
|||||||||
Income from discontinued operations
|
|
|
|
|
|
|
|
|
$
|
33,749
|
|
|
Year Ended December 31, 2013
|
||||||||||||||||||
|
PBMS
|
|
IMS
|
|
Nordic furniture business
|
|
DIS
|
|
Total
|
||||||||||
Revenue
|
$
|
639,237
|
|
|
$
|
23,036
|
|
|
$
|
37,785
|
|
|
$
|
78,066
|
|
|
$
|
778,124
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) income from operations
|
$
|
(118,017
|
)
|
|
$
|
(3,057
|
)
|
|
$
|
(4,037
|
)
|
|
$
|
19,223
|
|
|
$
|
(105,888
|
)
|
Gain (loss) on sale
|
5,126
|
|
|
(2,717
|
)
|
|
4,562
|
|
|
—
|
|
|
6,971
|
|
|||||
(Loss) income before taxes
|
(112,891
|
)
|
|
(5,774
|
)
|
|
525
|
|
|
19,223
|
|
|
(98,917
|
)
|
|||||
Tax provision (benefit)
|
41,384
|
|
|
(1,064
|
)
|
|
149
|
|
|
5,102
|
|
|
45,571
|
|
|||||
Net (loss) income
|
$
|
(154,275
|
)
|
|
$
|
(4,710
|
)
|
|
$
|
376
|
|
|
$
|
14,121
|
|
|
$
|
(144,488
|
)
|
Capital Services, net of tax
|
|
|
|
|
|
|
|
|
(289
|
)
|
|||||||||
Loss from discontinued operations
|
|
|
|
|
|
|
|
|
$
|
(144,777
|
)
|
|
Year Ended December 31, 2012
|
||||||||||||||||||
|
PBMS
|
|
IMS
|
|
Nordic furniture business
|
|
DIS
|
|
Total
|
||||||||||
Revenue
|
$
|
920,958
|
|
|
$
|
135,222
|
|
|
$
|
67,994
|
|
|
$
|
91,351
|
|
|
$
|
1,215,525
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from operations
|
$
|
67,458
|
|
|
$
|
(40,084
|
)
|
|
$
|
2,839
|
|
|
$
|
22,542
|
|
|
$
|
52,755
|
|
Tax provision (benefit)
|
29,255
|
|
|
(15,003
|
)
|
|
794
|
|
|
5,965
|
|
|
21,011
|
|
|||||
Net income (loss)
|
$
|
38,203
|
|
|
$
|
(25,081
|
)
|
|
$
|
2,045
|
|
|
$
|
16,577
|
|
|
$
|
31,744
|
|
Capital Services, net of tax
|
|
|
|
|
|
|
|
|
34,312
|
|
|||||||||
Income from discontinued operations
|
|
|
|
|
|
|
|
|
$
|
66,056
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Numerator:
|
|
|
|
|
|
|
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Net income from continuing operations
|
$
|
300,006
|
|
|
$
|
287,612
|
|
|
$
|
379,107
|
|
Income (loss) from discontinued operations
|
33,749
|
|
|
(144,777
|
)
|
|
66,056
|
|
|||
Net income (numerator for diluted EPS)
|
333,755
|
|
|
142,835
|
|
|
445,163
|
|
|||
Less: Preference stock dividend
|
44
|
|
|
46
|
|
|
51
|
|
|||
Income attributable to common stockholders (numerator for basic EPS)
|
$
|
333,711
|
|
|
$
|
142,789
|
|
|
$
|
445,112
|
|
Denominator (in thousands):
|
|
|
|
|
|
|
|
|
|||
Weighted-average shares used in basic EPS
|
201,992
|
|
|
201,614
|
|
|
200,389
|
|
|||
Effect of dilutive shares:
|
|
|
|
|
|
|
|
|
|||
Preferred stock
|
1
|
|
|
2
|
|
|
2
|
|
|||
Preference stock
|
344
|
|
|
381
|
|
|
398
|
|
|||
Stock plans
|
1,624
|
|
|
960
|
|
|
577
|
|
|||
Weighted-average shares used in diluted EPS
|
203,961
|
|
|
202,957
|
|
|
201,366
|
|
|||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.49
|
|
|
$
|
1.43
|
|
|
$
|
1.89
|
|
Discontinued operations
|
0.17
|
|
|
(0.72
|
)
|
|
0.33
|
|
|||
Net income attributable to Pitney Bowes Inc.
|
$
|
1.65
|
|
|
$
|
0.71
|
|
|
$
|
2.22
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.47
|
|
|
$
|
1.42
|
|
|
$
|
1.88
|
|
Discontinued operations
|
0.17
|
|
|
(0.71
|
)
|
|
0.33
|
|
|||
Net income attributable to Pitney Bowes Inc.
|
$
|
1.64
|
|
|
$
|
0.70
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
||||||
Anti-dilutive options excluded from diluted earnings per share (in thousands):
|
7,322
|
|
|
12,448
|
|
|
13,801
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Raw materials and work in process
|
$
|
37,175
|
|
|
$
|
33,920
|
|
Supplies and service parts
|
33,760
|
|
|
48,165
|
|
||
Finished products
|
26,992
|
|
|
38,515
|
|
||
Inventory at FIFO cost
|
97,927
|
|
|
120,600
|
|
||
Excess of FIFO cost over LIFO cost
|
(13,100
|
)
|
|
(17,020
|
)
|
||
Total inventory, net
|
$
|
84,827
|
|
|
$
|
103,580
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
North America
|
|
International
|
|
Total
|
|
North America
|
|
International
|
|
Total
|
||||||||||||
Sales-type lease receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross finance receivables
|
$
|
1,286,624
|
|
|
$
|
366,669
|
|
|
$
|
1,653,293
|
|
|
$
|
1,456,420
|
|
|
$
|
456,759
|
|
|
$
|
1,913,179
|
|
Unguaranteed residual values
|
105,205
|
|
|
18,291
|
|
|
123,496
|
|
|
121,339
|
|
|
21,553
|
|
|
142,892
|
|
||||||
Unearned income
|
(270,196
|
)
|
|
(83,110
|
)
|
|
(353,306
|
)
|
|
(299,396
|
)
|
|
(101,311
|
)
|
|
(400,707
|
)
|
||||||
Allowance for credit losses
|
(10,281
|
)
|
|
(5,129
|
)
|
|
(15,410
|
)
|
|
(14,165
|
)
|
|
(9,703
|
)
|
|
(23,868
|
)
|
||||||
Net investment in sales-type lease receivables
|
1,111,352
|
|
|
296,721
|
|
|
1,408,073
|
|
|
1,264,198
|
|
|
367,298
|
|
|
1,631,496
|
|
||||||
Loan receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loan receivables
|
376,987
|
|
|
47,665
|
|
|
424,652
|
|
|
397,815
|
|
|
49,054
|
|
|
446,869
|
|
||||||
Allowance for credit losses
|
(10,912
|
)
|
|
(1,788
|
)
|
|
(12,700
|
)
|
|
(11,165
|
)
|
|
(1,916
|
)
|
|
(13,081
|
)
|
||||||
Net investment in loan receivables
|
366,075
|
|
|
45,877
|
|
|
411,952
|
|
|
386,650
|
|
|
47,138
|
|
|
433,788
|
|
||||||
Net investment in finance receivables
|
$
|
1,477,427
|
|
|
$
|
342,598
|
|
|
$
|
1,820,025
|
|
|
$
|
1,650,848
|
|
|
$
|
414,436
|
|
|
$
|
2,065,284
|
|
|
Sales-type Lease Receivables
|
||||||||||
|
North America
|
|
International
|
|
Total
|
||||||
2015
|
$
|
580,232
|
|
|
$
|
146,670
|
|
|
$
|
726,902
|
|
2016
|
362,876
|
|
|
104,442
|
|
|
467,318
|
|
|||
2017
|
214,582
|
|
|
67,824
|
|
|
282,406
|
|
|||
2018
|
97,914
|
|
|
36,227
|
|
|
134,141
|
|
|||
2019
|
25,497
|
|
|
10,760
|
|
|
36,257
|
|
|||
Thereafter
|
5,523
|
|
|
746
|
|
|
6,269
|
|
|||
Total
|
$
|
1,286,624
|
|
|
$
|
366,669
|
|
|
$
|
1,653,293
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
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
|
|
|||||
Amounts charged to expense
|
4,584
|
|
|
4,553
|
|
|
9,663
|
|
|
1,254
|
|
|
20,054
|
|
|||||
Accounts written off
|
(7,398
|
)
|
|
(3,512
|
)
|
|
(10,820
|
)
|
|
(1,469
|
)
|
|
(23,199
|
)
|
|||||
Balance at December 31, 2013
|
14,165
|
|
|
9,703
|
|
|
11,165
|
|
|
1,916
|
|
|
36,949
|
|
|||||
Amounts charged to expense
|
4,346
|
|
|
866
|
|
|
10,237
|
|
|
1,626
|
|
|
17,075
|
|
|||||
Accounts written off
|
(8,230
|
)
|
|
(5,440
|
)
|
|
(10,490
|
)
|
|
(1,754
|
)
|
|
(25,914
|
)
|
|||||
Balance at December 31, 2014
|
$
|
10,281
|
|
|
$
|
5,129
|
|
|
$
|
10,912
|
|
|
$
|
1,788
|
|
|
$
|
28,110
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 - 30 days
|
$
|
1,217,623
|
|
|
$
|
347,236
|
|
|
$
|
359,672
|
|
|
$
|
45,678
|
|
|
$
|
1,970,209
|
|
31 - 60 days
|
23,242
|
|
|
6,207
|
|
|
9,245
|
|
|
1,201
|
|
|
39,895
|
|
|||||
61 - 90 days
|
24,198
|
|
|
4,494
|
|
|
3,498
|
|
|
413
|
|
|
32,603
|
|
|||||
> 90 days
|
21,561
|
|
|
8,732
|
|
|
4,572
|
|
|
373
|
|
|
35,238
|
|
|||||
Total
|
$
|
1,286,624
|
|
|
$
|
366,669
|
|
|
$
|
376,987
|
|
|
$
|
47,665
|
|
|
$
|
2,077,945
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
5,931
|
|
|
$
|
2,517
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,448
|
|
Not accruing interest
|
15,630
|
|
|
6,215
|
|
|
4,572
|
|
|
373
|
|
|
26,790
|
|
|||||
Total
|
$
|
21,561
|
|
|
$
|
8,732
|
|
|
$
|
4,572
|
|
|
$
|
373
|
|
|
$
|
35,238
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 - 30 days
|
$
|
1,383,253
|
|
|
$
|
425,923
|
|
|
$
|
379,502
|
|
|
$
|
42,573
|
|
|
$
|
2,231,251
|
|
31 - 60 days
|
32,102
|
|
|
11,760
|
|
|
10,464
|
|
|
4,391
|
|
|
58,717
|
|
|||||
61 - 90 days
|
20,830
|
|
|
5,724
|
|
|
3,330
|
|
|
1,363
|
|
|
31,247
|
|
|||||
> 90 days
|
20,235
|
|
|
13,352
|
|
|
4,519
|
|
|
727
|
|
|
38,833
|
|
|||||
Total
|
$
|
1,456,420
|
|
|
$
|
456,759
|
|
|
$
|
397,815
|
|
|
$
|
49,054
|
|
|
$
|
2,360,048
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
6,413
|
|
|
$
|
3,979
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,392
|
|
Not accruing interest
|
13,822
|
|
|
9,373
|
|
|
4,519
|
|
|
727
|
|
|
28,441
|
|
|||||
Total
|
$
|
20,235
|
|
|
$
|
13,352
|
|
|
$
|
4,519
|
|
|
$
|
727
|
|
|
$
|
38,833
|
|
•
|
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,
|
||||||
|
2014
|
|
2013
|
||||
Sales-type lease receivables
|
|
|
|
|
|
||
Low
|
$
|
936,979
|
|
|
$
|
1,081,853
|
|
Medium
|
230,799
|
|
|
244,379
|
|
||
High
|
45,202
|
|
|
51,851
|
|
||
Not Scored
|
73,644
|
|
|
78,337
|
|
||
Total
|
$
|
1,286,624
|
|
|
$
|
1,456,420
|
|
Loan receivables
|
|
|
|
|
|
||
Low
|
$
|
259,436
|
|
|
$
|
279,607
|
|
Medium
|
96,243
|
|
|
95,524
|
|
||
High
|
10,913
|
|
|
11,511
|
|
||
Not Scored
|
10,395
|
|
|
11,173
|
|
||
Total
|
$
|
376,987
|
|
|
$
|
397,815
|
|
|
|
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Land
|
$
|
9,908
|
|
|
$
|
6,797
|
|
Buildings
|
213,196
|
|
|
176,200
|
|
||
Machinery and equipment
|
923,374
|
|
|
918,075
|
|
||
|
1,146,478
|
|
|
1,101,072
|
|
||
Accumulated depreciation
|
(861,387
|
)
|
|
(855,901
|
)
|
||
Property, plant and equipment, net
|
$
|
285,091
|
|
|
$
|
245,171
|
|
|
|
|
|
||||
Rental property and equipment
|
$
|
462,244
|
|
|
$
|
537,128
|
|
Accumulated depreciation
|
(261,864
|
)
|
|
(310,982
|
)
|
||
Rental property and equipment, net
|
$
|
200,380
|
|
|
$
|
226,146
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Customer relationships
|
$
|
337,438
|
|
|
$
|
(263,121
|
)
|
|
$
|
74,317
|
|
|
$
|
354,373
|
|
|
$
|
(251,388
|
)
|
|
$
|
102,985
|
|
Supplier relationships
|
29,000
|
|
|
(27,913
|
)
|
|
1,087
|
|
|
29,000
|
|
|
(25,013
|
)
|
|
3,987
|
|
||||||
Software & technology
|
160,825
|
|
|
(154,610
|
)
|
|
6,215
|
|
|
167,009
|
|
|
(155,009
|
)
|
|
12,000
|
|
||||||
Trademarks & other
|
33,079
|
|
|
(32,525
|
)
|
|
554
|
|
|
42,773
|
|
|
(41,358
|
)
|
|
1,415
|
|
||||||
Total intangible assets, net
|
$
|
560,342
|
|
|
$
|
(478,169
|
)
|
|
$
|
82,173
|
|
|
$
|
593,155
|
|
|
$
|
(472,768
|
)
|
|
$
|
120,387
|
|
|
Gross value before accumulated impairment
|
|
Accumulated impairment
|
|
December 31, 2013
|
|
Impairment
|
|
Other
(1)
|
|
December 31, 2014
|
||||||||||||
North America Mailing
|
$
|
326,664
|
|
|
$
|
—
|
|
|
$
|
326,664
|
|
|
$
|
—
|
|
|
$
|
(17,216
|
)
|
|
$
|
309,448
|
|
International Mailing
|
182,261
|
|
|
—
|
|
|
182,261
|
|
|
—
|
|
|
(20,115
|
)
|
|
162,146
|
|
||||||
Small & Medium Business Solutions
|
508,925
|
|
|
—
|
|
|
508,925
|
|
|
—
|
|
|
(37,331
|
)
|
|
471,594
|
|
||||||
Production Mail
|
118,060
|
|
|
—
|
|
|
118,060
|
|
|
—
|
|
|
(7,223
|
)
|
|
110,837
|
|
||||||
Presort Services
|
195,140
|
|
|
—
|
|
|
195,140
|
|
|
—
|
|
|
—
|
|
|
195,140
|
|
||||||
Enterprise Business Solutions
|
313,200
|
|
|
—
|
|
|
313,200
|
|
|
—
|
|
|
(7,223
|
)
|
|
305,977
|
|
||||||
Digital Commerce Solutions
|
903,393
|
|
|
—
|
|
|
903,393
|
|
|
—
|
|
|
(8,243
|
)
|
|
895,150
|
|
||||||
Total reportable segments
|
1,725,518
|
|
|
—
|
|
|
1,725,518
|
|
|
—
|
|
|
(52,797
|
)
|
|
1,672,721
|
|
||||||
Discontinued operations
|
9,353
|
|
|
—
|
|
|
9,353
|
|
|
—
|
|
|
(9,353
|
)
|
|
—
|
|
||||||
Total goodwill
|
$
|
1,734,871
|
|
|
$
|
—
|
|
|
$
|
1,734,871
|
|
|
$
|
—
|
|
|
$
|
(62,150
|
)
|
|
$
|
1,672,721
|
|
|
Gross value before accumulated impairment
|
|
Accumulated impairment
|
|
December 31, 2012
|
|
Impairment
|
|
Other
(1)
|
|
December 31, 2013
|
||||||||||||
North America Mailing
|
$
|
322,610
|
|
|
$
|
—
|
|
|
$
|
322,610
|
|
|
$
|
—
|
|
|
$
|
4,054
|
|
|
$
|
326,664
|
|
International Mailing
|
182,746
|
|
|
—
|
|
|
182,746
|
|
|
—
|
|
|
(485
|
)
|
|
182,261
|
|
||||||
Small & Medium Business Solutions
|
505,356
|
|
|
—
|
|
|
505,356
|
|
|
—
|
|
|
3,569
|
|
|
508,925
|
|
||||||
Production Mail
|
120,881
|
|
|
—
|
|
|
120,881
|
|
|
—
|
|
|
(2,821
|
)
|
|
118,060
|
|
||||||
Presort Services
|
195,140
|
|
|
—
|
|
|
195,140
|
|
|
—
|
|
|
—
|
|
|
195,140
|
|
||||||
Enterprise Business Solutions
|
316,021
|
|
|
—
|
|
|
316,021
|
|
|
—
|
|
|
(2,821
|
)
|
|
313,200
|
|
||||||
Digital Commerce Solutions
|
900,347
|
|
|
—
|
|
|
900,347
|
|
|
—
|
|
|
3,046
|
|
|
903,393
|
|
||||||
Total reportable segments
|
1,721,724
|
|
|
—
|
|
|
1,721,724
|
|
|
—
|
|
|
3,794
|
|
|
1,725,518
|
|
||||||
Discontinued operations
|
562,879
|
|
|
(148,465
|
)
|
|
414,414
|
|
|
(101,415
|
)
|
|
(303,646
|
)
|
|
9,353
|
|
||||||
Total goodwill
|
$
|
2,284,603
|
|
|
$
|
(148,465
|
)
|
|
$
|
2,136,138
|
|
|
$
|
(101,415
|
)
|
|
$
|
(299,852
|
)
|
|
$
|
1,734,871
|
|
(1)
|
Primarily represents foreign currency translation adjustments. For discontinued operations, the adjustment primarily represents the write-off of remaining goodwill upon sale.
|
Level 1
–
|
Unadjusted quoted prices in active markets for identical assets and liabilities.
|
Level 2
–
|
Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data.
|
Level 3
–
|
Unobservable inputs that are supported by little or no market activity and may be derived from internally developed methodologies based on management's best estimates.
|
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds / commercial paper
|
$
|
505,643
|
|
|
$
|
193,986
|
|
|
$
|
—
|
|
|
$
|
699,629
|
|
Equity securities
|
—
|
|
|
27,409
|
|
|
—
|
|
|
27,409
|
|
||||
Commingled fixed income securities
|
—
|
|
|
24,077
|
|
|
—
|
|
|
24,077
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
113,974
|
|
|
24,006
|
|
|
—
|
|
|
137,980
|
|
||||
Debt securities - corporate
|
—
|
|
|
67,448
|
|
|
—
|
|
|
67,448
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
156,614
|
|
|
—
|
|
|
156,614
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
|
1,386
|
|
|
—
|
|
|
1,386
|
|
||||
Total assets
|
$
|
619,617
|
|
|
$
|
494,926
|
|
|
$
|
—
|
|
|
$
|
1,114,543
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(2,988
|
)
|
|
$
|
—
|
|
|
$
|
(2,988
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(2,988
|
)
|
|
$
|
—
|
|
|
$
|
(2,988
|
)
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds / commercial paper
|
$
|
403,706
|
|
|
$
|
224,440
|
|
|
$
|
—
|
|
|
$
|
628,146
|
|
Equity securities
|
—
|
|
|
26,536
|
|
|
—
|
|
|
26,536
|
|
||||
Commingled fixed income securities
|
—
|
|
|
24,695
|
|
|
—
|
|
|
24,695
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
122,783
|
|
|
17,653
|
|
|
—
|
|
|
140,436
|
|
||||
Debt securities - corporate
|
—
|
|
|
38,264
|
|
|
—
|
|
|
38,264
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
164,598
|
|
|
—
|
|
|
164,598
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
—
|
|
|
1,358
|
|
|
—
|
|
|
1,358
|
|
||||
Total assets
|
$
|
526,489
|
|
|
$
|
497,544
|
|
|
$
|
—
|
|
|
$
|
1,024,033
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
(4,445
|
)
|
|
$
|
—
|
|
|
$
|
(4,445
|
)
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
—
|
|
|
(3,009
|
)
|
|
—
|
|
|
(3,009
|
)
|
||||
Total liabilities
|
$
|
—
|
|
|
$
|
(7,454
|
)
|
|
$
|
—
|
|
|
$
|
(7,454
|
)
|
•
|
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 / Asset-Backed Securities:
These securities are valued based on external pricing indices. When external index pricing is not observable, these securities are valued based on external price/spread data. These securities are classified as Level 2.
|
|
December 31, 2014
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
U.S. and foreign governments, agencies and municipalities
|
$
|
135,839
|
|
|
$
|
2,905
|
|
|
$
|
(764
|
)
|
|
$
|
137,980
|
|
Corporate
|
66,170
|
|
|
1,569
|
|
|
(291
|
)
|
|
67,448
|
|
||||
Mortgage-backed / asset-backed securities
|
155,330
|
|
|
2,362
|
|
|
(1,078
|
)
|
|
156,614
|
|
||||
Total
|
$
|
357,339
|
|
|
$
|
6,836
|
|
|
$
|
(2,133
|
)
|
|
$
|
362,042
|
|
|
December 31, 2013
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
U.S. and foreign governments, agencies and municipalities
|
$
|
121,803
|
|
|
$
|
999
|
|
|
$
|
(3,372
|
)
|
|
$
|
119,430
|
|
Corporate
|
37,901
|
|
|
935
|
|
|
(572
|
)
|
|
38,264
|
|
||||
Mortgage-backed / asset-backed securities
|
165,664
|
|
|
1,570
|
|
|
(2,636
|
)
|
|
164,598
|
|
||||
Total
|
$
|
325,368
|
|
|
$
|
3,504
|
|
|
$
|
(6,580
|
)
|
|
$
|
322,292
|
|
|
Amortized cost
|
|
Estimated fair value
|
||||
Within 1 year
|
$
|
48,452
|
|
|
$
|
48,527
|
|
After 1 year through 5 years
|
70,734
|
|
|
71,526
|
|
||
After 5 years through 10 years
|
80,426
|
|
|
81,744
|
|
||
After 10 years
|
157,727
|
|
|
160,245
|
|
||
Total
|
$
|
357,339
|
|
|
$
|
362,042
|
|
|
|
|
|
December 31,
|
||||||
Designation of Derivatives
|
|
Balance Sheet Location
|
|
2014
|
|
2013
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
Other current assets and prepayments
|
|
$
|
762
|
|
|
$
|
546
|
|
|
|
Accounts payable and accrued liabilities
|
|
—
|
|
|
(526
|
)
|
||
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
Other current assets and prepayments
|
|
624
|
|
|
812
|
|
||
|
|
Accounts payable and accrued liabilities
|
|
(2,988
|
)
|
|
(2,483
|
)
|
||
|
|
|
|
|
|
|
||||
|
|
Total derivative assets
|
|
1,386
|
|
|
1,358
|
|
||
|
|
Total derivative liabilities
|
|
(2,988
|
)
|
|
(3,009
|
)
|
||
|
|
Total net derivative liability
|
|
$
|
(1,602
|
)
|
|
$
|
(1,651
|
)
|
|
|
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
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|||||||||
Foreign exchange contracts
|
|
$
|
1,878
|
|
|
$
|
241
|
|
|
Revenue
|
|
$
|
1,276
|
|
|
$
|
(835
|
)
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
(140
|
)
|
|
332
|
|
||||
|
|
|
|
|
|
|
|
|
|
$
|
1,136
|
|
|
$
|
(503
|
)
|
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
|
Derivative Gain (Loss)
Recognized in Earnings
|
||||||
Derivatives Instrument
|
|
Location of Derivative Gain (Loss)
|
|
2014
|
|
2013
|
||||
Foreign exchange contracts
|
|
Selling, general and administrative expense
|
|
$
|
(4,701
|
)
|
|
$
|
(16,574
|
)
|
|
|
|
|
Year Ended December 31, 2013
|
||||||
Derivative Instrument
|
|
Location of Gain (Loss)
|
|
Derivative Gain
Recognized in Earnings
|
|
Hedged Item Expense
Recognized in Earnings
|
||||
Interest rate swaps
|
|
Interest expense
|
|
$
|
3,798
|
|
|
$
|
(11,883
|
)
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Other assets:
|
|
|
|
||||
Long-term investments
|
$
|
324,439
|
|
|
$
|
293,514
|
|
Deferred charges
|
149,092
|
|
|
161,570
|
|
||
Other
|
95,579
|
|
|
116,723
|
|
||
Total
|
$
|
569,110
|
|
|
$
|
571,807
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
268,527
|
|
|
$
|
270,067
|
|
Customer deposits
|
661,167
|
|
|
672,440
|
|
||
Employee related liabilities
|
319,963
|
|
|
332,072
|
|
||
Miscellaneous other
|
309,074
|
|
|
370,003
|
|
||
Total
|
$
|
1,558,731
|
|
|
$
|
1,644,582
|
|
|
Severance and benefits costs
|
|
Other exit
costs
|
|
Total
|
||||||
Balance at December 31, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Expenses, net
|
55,449
|
|
|
9,961
|
|
|
65,410
|
|
|||
Cash payments
|
(13,022
|
)
|
|
(2,339
|
)
|
|
(15,361
|
)
|
|||
Balance at December 31, 2013
|
42,427
|
|
|
7,622
|
|
|
50,049
|
|
|||
Expenses, net
|
82,730
|
|
|
5,444
|
|
|
88,174
|
|
|||
Cash payments
|
(47,052
|
)
|
|
(4,912
|
)
|
|
(51,964
|
)
|
|||
Balance at December 31, 2014
|
$
|
78,105
|
|
|
$
|
8,154
|
|
|
$
|
86,259
|
|
|
Severance and benefits costs
|
|
Other exit
costs
|
|
Total
|
||||||
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
|
)
|
|||
Balance at December 31, 2012
|
62,540
|
|
|
5,218
|
|
|
67,758
|
|
|||
Expenses, net
|
(7,076
|
)
|
|
—
|
|
|
(7,076
|
)
|
|||
Cash payments
|
(39,333
|
)
|
|
(4,826
|
)
|
|
(44,159
|
)
|
|||
Balance at December 31, 2013
|
16,131
|
|
|
392
|
|
|
16,523
|
|
|||
Expenses, net
|
(8,405
|
)
|
|
—
|
|
|
(8,405
|
)
|
|||
Cash payments
|
(3,995
|
)
|
|
(203
|
)
|
|
(4,198
|
)
|
|||
Balance at December 31, 2014
|
$
|
3,731
|
|
|
$
|
189
|
|
|
$
|
3,920
|
|
|
|
|
December 31,
|
||||||
|
Interest rate
|
|
2014
|
|
2013
|
||||
Notes due March 2015
|
5.0%
|
|
$
|
274,879
|
|
|
$
|
274,879
|
|
Notes due January 2016
|
4.75%
|
|
370,914
|
|
|
370,914
|
|
||
Notes due September 2017
|
5.75%
|
|
385,109
|
|
|
500,000
|
|
||
Notes due March 2018
|
5.6%
|
|
250,000
|
|
|
250,000
|
|
||
Notes due May 2018
|
4.75%
|
|
350,000
|
|
|
350,000
|
|
||
Notes due March 2019
|
6.25%
|
|
300,000
|
|
|
300,000
|
|
||
Notes due November 2022
|
5.25%
|
|
110,000
|
|
|
110,000
|
|
||
Notes due March 2024
|
4.625%
|
|
500,000
|
|
|
—
|
|
||
State of CT DECD loan due November 2024
|
2.0%
|
|
16,000
|
|
|
—
|
|
||
Notes due January 2037
|
5.25%
|
|
115,041
|
|
|
500,000
|
|
||
Notes due March 2043
|
6.7%
|
|
425,000
|
|
|
425,000
|
|
||
Term loans
|
Variable
|
|
130,000
|
|
|
230,000
|
|
||
Principal amount
|
|
|
3,226,943
|
|
|
3,310,793
|
|
||
Less: unamortized discount
|
|
|
6,653
|
|
|
5,158
|
|
||
Plus: unamortized interest rate swap proceeds
|
|
|
31,716
|
|
|
40,660
|
|
||
Total debt
|
|
|
3,252,006
|
|
|
3,346,295
|
|
||
Less: current portion long-term debt
|
|
|
324,879
|
|
|
—
|
|
||
Long-term debt
|
|
|
$
|
2,927,127
|
|
|
$
|
3,346,295
|
|
2015
|
$
|
324,879
|
|
2016
|
450,914
|
|
|
2017
|
385,109
|
|
|
2018
|
600,000
|
|
|
2019
|
300,000
|
|
|
Thereafter
|
1,166,041
|
|
|
Total
|
$
|
3,226,943
|
|
|
United States
|
|
Foreign
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Accumulated benefit obligation
|
$
|
1,866,914
|
|
|
$
|
1,611,457
|
|
|
$
|
698,176
|
|
|
$
|
659,602
|
|
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation - beginning of year
|
$
|
1,622,591
|
|
|
$
|
1,822,677
|
|
|
$
|
672,773
|
|
|
$
|
663,826
|
|
Service cost
|
6,908
|
|
|
13,981
|
|
|
3,565
|
|
|
6,272
|
|
||||
Interest cost
|
77,655
|
|
|
74,370
|
|
|
28,518
|
|
|
27,365
|
|
||||
Plan participants' contributions
|
—
|
|
|
—
|
|
|
59
|
|
|
496
|
|
||||
Actuarial loss (gain)
|
306,718
|
|
|
(154,996
|
)
|
|
89,695
|
|
|
(1,224
|
)
|
||||
Foreign currency changes
|
—
|
|
|
—
|
|
|
(52,750
|
)
|
|
(204
|
)
|
||||
Settlement / curtailment
|
(16,867
|
)
|
|
(3,275
|
)
|
|
—
|
|
|
(86
|
)
|
||||
Special termination benefits
|
—
|
|
|
548
|
|
|
1,238
|
|
|
935
|
|
||||
Benefits paid
|
(128,829
|
)
|
|
(130,714
|
)
|
|
(27,811
|
)
|
|
(24,607
|
)
|
||||
Benefit obligation - end of year
|
$
|
1,868,176
|
|
|
$
|
1,622,591
|
|
|
$
|
715,287
|
|
|
$
|
672,773
|
|
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets - beginning of year
|
$
|
1,523,679
|
|
|
$
|
1,583,932
|
|
|
$
|
561,078
|
|
|
$
|
509,331
|
|
Actual return on plan assets
|
195,946
|
|
|
60,569
|
|
|
67,306
|
|
|
62,777
|
|
||||
Company contributions
|
19,534
|
|
|
9,892
|
|
|
15,323
|
|
|
14,509
|
|
||||
Plan participants' contributions
|
—
|
|
|
—
|
|
|
59
|
|
|
496
|
|
||||
Settlement / curtailment
|
(16,867
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency changes
|
—
|
|
|
—
|
|
|
(40,963
|
)
|
|
(1,428
|
)
|
||||
Benefits paid
|
(128,829
|
)
|
|
(130,714
|
)
|
|
(27,811
|
)
|
|
(24,607
|
)
|
||||
Fair value of plan assets - end of year
|
$
|
1,593,463
|
|
|
$
|
1,523,679
|
|
|
$
|
574,992
|
|
|
$
|
561,078
|
|
Amounts recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
||||||||
Non-current asset
|
$
|
300
|
|
|
$
|
195
|
|
|
$
|
5,813
|
|
|
$
|
11,951
|
|
Current liability
|
(6,590
|
)
|
|
(18,097
|
)
|
|
(1,008
|
)
|
|
(1,051
|
)
|
||||
Non-current liability
|
(268,423
|
)
|
|
(81,010
|
)
|
|
(145,100
|
)
|
|
(122,595
|
)
|
||||
Funded status
|
$
|
(274,713
|
)
|
|
$
|
(98,912
|
)
|
|
$
|
(140,295
|
)
|
|
$
|
(111,695
|
)
|
|
United States
|
|
Foreign
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Projected benefit obligation
|
$
|
1,867,788
|
|
|
$
|
1,621,164
|
|
|
$
|
583,317
|
|
|
$
|
544,875
|
|
Accumulated benefit obligation
|
$
|
1,866,525
|
|
|
$
|
1,610,029
|
|
|
$
|
566,365
|
|
|
$
|
532,774
|
|
Fair value of plan assets
|
$
|
1,592,774
|
|
|
$
|
1,522,057
|
|
|
$
|
437,209
|
|
|
$
|
421,229
|
|
|
United States
|
|
Foreign
|
||||
Net actuarial loss
|
$
|
30,590
|
|
|
$
|
6,828
|
|
Prior service cost (credit)
|
9
|
|
|
(79
|
)
|
||
Transition asset
|
—
|
|
|
(10
|
)
|
||
Total
|
$
|
30,599
|
|
|
$
|
6,739
|
|
|
United States
|
|
Foreign
|
||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Service cost
|
$
|
6,908
|
|
|
$
|
13,981
|
|
|
$
|
18,939
|
|
|
$
|
3,565
|
|
|
$
|
6,272
|
|
|
$
|
7,763
|
|
Interest cost
|
77,655
|
|
|
74,370
|
|
|
81,040
|
|
|
28,518
|
|
|
27,365
|
|
|
27,793
|
|
||||||
Expected return on plan assets
|
(103,822
|
)
|
|
(107,608
|
)
|
|
(121,623
|
)
|
|
(39,137
|
)
|
|
(34,769
|
)
|
|
(32,299
|
)
|
||||||
Amortization of net transition asset
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(9
|
)
|
|
(10
|
)
|
||||||
Amortization of prior service cost (credit)
|
9
|
|
|
380
|
|
|
803
|
|
|
(57
|
)
|
|
112
|
|
|
112
|
|
||||||
Amortization of net actuarial loss
|
25,369
|
|
|
32,494
|
|
|
52,957
|
|
|
8,268
|
|
|
14,445
|
|
|
14,103
|
|
||||||
Special termination benefits
|
—
|
|
|
548
|
|
|
—
|
|
|
1,238
|
|
|
935
|
|
|
601
|
|
||||||
Settlement / curtailment
|
4,528
|
|
|
2,638
|
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
444
|
|
||||||
Net periodic benefit cost
|
$
|
10,647
|
|
|
$
|
16,803
|
|
|
$
|
32,068
|
|
|
$
|
2,385
|
|
|
$
|
14,351
|
|
|
$
|
18,507
|
|
|
United States
|
|
Foreign
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net actuarial loss (gain)
|
$
|
214,593
|
|
|
$
|
(111,232
|
)
|
|
$
|
61,525
|
|
|
$
|
(29,320
|
)
|
Amortization of net actuarial loss
|
(25,369
|
)
|
|
(32,494
|
)
|
|
(8,268
|
)
|
|
(14,445
|
)
|
||||
Amortization of prior service (cost) credit
|
(9
|
)
|
|
(380
|
)
|
|
57
|
|
|
(112
|
)
|
||||
Net transition asset
|
—
|
|
|
—
|
|
|
10
|
|
|
9
|
|
||||
Settlement / curtailment
|
(4,528
|
)
|
|
(2,638
|
)
|
|
—
|
|
|
—
|
|
||||
Total recognized in other comprehensive income
|
$
|
184,687
|
|
|
$
|
(146,744
|
)
|
|
$
|
53,324
|
|
|
$
|
(43,868
|
)
|
|
2014
|
|
2013
|
|
2012
|
|||||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
4.15%
|
|
4.95%
|
|
4.05%
|
|||||||||
Rate of compensation increase
|
N/A
|
|
3.50%
|
|
3.50%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
4.95%
|
|
4.05%
|
|
4.95%
|
|||||||||
Expected return on plan assets
|
7.00%
|
|
7.25%
|
|
7.75%
|
|||||||||
Rate of compensation increase
|
3.50%
|
|
3.50%
|
|
3.50%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
1.10
|
%
|
-
|
3.80%
|
|
1.45
|
%
|
-
|
4.60%
|
|
1.95
|
%
|
-
|
4.65%
|
Rate of compensation increase
|
1.50
|
%
|
-
|
3.50%
|
|
1.50
|
%
|
-
|
3.50%
|
|
1.50
|
%
|
-
|
3.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Used to determine net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discount rate
|
1.45
|
%
|
-
|
4.60%
|
|
1.95
|
%
|
-
|
4.65%
|
|
1.80
|
%
|
-
|
6.10%
|
Expected return on plan assets
|
3.75
|
%
|
-
|
7.50%
|
|
3.50
|
%
|
-
|
7.50%
|
|
3.25
|
%
|
-
|
7.50%
|
Rate of compensation increase
|
1.50
|
%
|
-
|
3.50%
|
|
1.50
|
%
|
-
|
3.50%
|
|
2.10
|
%
|
-
|
4.60%
|
|
Target allocation
|
|
Percent of Plan Assets at December 31,
|
|||||
|
2015
|
|
2014
|
|
2013
|
|||
Asset category
|
|
|
|
|
|
|||
U.S. equities
|
11
|
%
|
|
12
|
%
|
|
16
|
%
|
Non-U.S. equities
|
11
|
%
|
|
9
|
%
|
|
14
|
%
|
Fixed income
|
68
|
%
|
|
69
|
%
|
|
60
|
%
|
Real estate
|
2
|
%
|
|
5
|
%
|
|
4
|
%
|
Private equity
|
8
|
%
|
|
5
|
%
|
|
6
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Target Allocation
|
|
Percent of Plan Assets at December 31,
|
|||||
|
2015
|
|
2014
|
|
2013
|
|||
Asset category
|
|
|
|
|
|
|||
U.K. equities
|
30
|
%
|
|
28
|
%
|
|
33
|
%
|
Non-U.K. equities
|
30
|
%
|
|
29
|
%
|
|
35
|
%
|
Fixed income
|
40
|
%
|
|
40
|
%
|
|
31
|
%
|
Cash
|
—
|
%
|
|
3
|
%
|
|
1
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
10,758
|
|
|
$
|
—
|
|
|
$
|
10,758
|
|
Equity securities
|
180,069
|
|
|
146,716
|
|
|
—
|
|
|
326,785
|
|
||||
Commingled fixed income securities
|
—
|
|
|
261,571
|
|
|
—
|
|
|
261,571
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
184,209
|
|
|
25,131
|
|
|
—
|
|
|
209,340
|
|
||||
Debt securities - corporate
|
—
|
|
|
598,927
|
|
|
—
|
|
|
598,927
|
|
||||
Mortgage-backed securities
|
—
|
|
|
20,401
|
|
|
2,102
|
|
|
22,503
|
|
||||
Asset-backed securities
|
—
|
|
|
2,158
|
|
|
—
|
|
|
2,158
|
|
||||
Private equity
|
—
|
|
|
—
|
|
|
81,246
|
|
|
81,246
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
74,747
|
|
|
74,747
|
|
||||
Securities lending collateral
(1)
|
—
|
|
|
131,901
|
|
|
—
|
|
|
131,901
|
|
||||
Total plan assets at fair value
|
$
|
364,278
|
|
|
$
|
1,197,563
|
|
|
$
|
158,095
|
|
|
$
|
1,719,936
|
|
Securities lending payable
(1)
|
|
|
|
|
|
|
(131,901
|
)
|
|||||||
Cash
|
|
|
|
|
|
|
4,621
|
|
|||||||
Other
|
|
|
|
|
|
|
807
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
1,593,463
|
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
30,374
|
|
|
$
|
—
|
|
|
$
|
30,374
|
|
Equity securities
|
279,988
|
|
|
165,303
|
|
|
—
|
|
|
445,291
|
|
||||
Commingled fixed income securities
|
—
|
|
|
209,674
|
|
|
—
|
|
|
209,674
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
43,390
|
|
|
30,477
|
|
|
—
|
|
|
73,867
|
|
||||
Debt securities - corporate
|
—
|
|
|
568,567
|
|
|
—
|
|
|
568,567
|
|
||||
Mortgage-backed securities
|
—
|
|
|
31,738
|
|
|
2,634
|
|
|
34,372
|
|
||||
Asset-backed securities
|
—
|
|
|
625
|
|
|
—
|
|
|
625
|
|
||||
Private equity
|
—
|
|
|
—
|
|
|
87,470
|
|
|
87,470
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
67,917
|
|
|
67,917
|
|
||||
Securities lending collateral
(1)
|
—
|
|
|
6,602
|
|
|
—
|
|
|
6,602
|
|
||||
Total plan assets at fair value
|
$
|
323,378
|
|
|
$
|
1,043,360
|
|
|
$
|
158,021
|
|
|
$
|
1,524,759
|
|
Securities lending payable
(1)
|
|
|
|
|
|
|
(6,602
|
)
|
|||||||
Cash
|
|
|
|
|
|
|
634
|
|
|||||||
Other
|
|
|
|
|
|
|
4,888
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
1,523,679
|
|
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
6,684
|
|
|
$
|
—
|
|
|
$
|
6,684
|
|
Equity securities
|
99,570
|
|
|
190,924
|
|
|
—
|
|
|
290,494
|
|
||||
Commingled fixed income securities
|
—
|
|
|
151,017
|
|
|
—
|
|
|
151,017
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
—
|
|
|
85,711
|
|
|
—
|
|
|
85,711
|
|
||||
Debt securities - corporate
|
—
|
|
|
26,154
|
|
|
—
|
|
|
26,154
|
|
||||
Total plan assets at fair value
|
$
|
99,570
|
|
|
$
|
460,490
|
|
|
$
|
—
|
|
|
$
|
560,060
|
|
Cash
|
|
|
|
|
|
|
10,859
|
|
|||||||
Other
|
|
|
|
|
|
|
4,073
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
574,992
|
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
—
|
|
|
$
|
6,058
|
|
|
$
|
—
|
|
|
$
|
6,058
|
|
Equity securities
|
109,403
|
|
|
257,046
|
|
|
—
|
|
|
366,449
|
|
||||
Commingled fixed income securities
|
—
|
|
|
104,070
|
|
|
—
|
|
|
104,070
|
|
||||
Debt securities - U.S. and foreign governments, agencies and municipalities
|
—
|
|
|
60,204
|
|
|
—
|
|
|
60,204
|
|
||||
Debt securities - corporate
|
—
|
|
|
17,944
|
|
|
—
|
|
|
17,944
|
|
||||
Total plan assets at fair value
|
$
|
109,403
|
|
|
$
|
445,322
|
|
|
$
|
—
|
|
|
$
|
554,725
|
|
Cash
|
|
|
|
|
|
|
5,285
|
|
|||||||
Other
|
|
|
|
|
|
|
1,068
|
|
|||||||
Fair value of plan assets available for benefits
|
|
|
|
|
|
|
|
|
$
|
561,078
|
|
•
|
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.
|
•
|
Debt Securities – Corporate
: 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.
|
•
|
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 December 31, 2012
|
$
|
3,191
|
|
|
$
|
91,805
|
|
|
$
|
63,168
|
|
|
$
|
158,164
|
|
Realized (losses) gains
|
—
|
|
|
(1,591
|
)
|
|
1,939
|
|
|
348
|
|
||||
Unrealized gains
|
205
|
|
|
2,190
|
|
|
5,182
|
|
|
7,577
|
|
||||
Net purchases, sales and settlements
|
(762
|
)
|
|
(4,934
|
)
|
|
(2,372
|
)
|
|
(8,068
|
)
|
||||
Balance at December 31, 2013
|
2,634
|
|
|
87,470
|
|
|
67,917
|
|
|
158,021
|
|
||||
Realized gains
|
12
|
|
|
11,174
|
|
|
285
|
|
|
11,471
|
|
||||
Unrealized gains
|
59
|
|
|
1,886
|
|
|
6,140
|
|
|
8,085
|
|
||||
Net purchases, sales and settlements
|
(603
|
)
|
|
(19,284
|
)
|
|
405
|
|
|
(19,482
|
)
|
||||
Balance at December 31, 2014
|
$
|
2,102
|
|
|
$
|
81,246
|
|
|
$
|
74,747
|
|
|
$
|
158,095
|
|
|
2014
|
|
2013
|
||||
Benefit obligation
|
|
|
|
||||
Benefit obligation - beginning of year
|
$
|
231,153
|
|
|
$
|
282,857
|
|
Service cost
|
2,683
|
|
|
3,684
|
|
||
Interest cost
|
9,951
|
|
|
9,503
|
|
||
Plan participants' contributions
|
5,418
|
|
|
4,313
|
|
||
Actuarial loss (gain)
|
37,532
|
|
|
(30,051
|
)
|
||
Foreign currency changes
|
(2,096
|
)
|
|
(1,693
|
)
|
||
Curtailment
|
(2,160
|
)
|
|
(4,839
|
)
|
||
Benefits paid
|
(28,501
|
)
|
|
(32,621
|
)
|
||
Benefit obligation - end of year
(1)
|
$
|
253,980
|
|
|
$
|
231,153
|
|
Fair value of plan assets
|
|
|
|
||||
Fair value of plan assets - beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Company contribution
|
23,083
|
|
|
28,308
|
|
||
Plan participants' contributions
|
5,418
|
|
|
4,313
|
|
||
Benefits paid
|
(28,501
|
)
|
|
(32,621
|
)
|
||
Fair value of plan assets - end of year
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
The benefit obligation for the U.S. nonpension postretirement plans was
$231 million
and
$208 million
at
December 31, 2014
and
2013
, respectively.
|
|
2014
|
|
2013
|
||||
Net actuarial loss
|
$
|
97,955
|
|
|
$
|
68,120
|
|
Prior service cost
|
2,356
|
|
|
2,516
|
|
||
Total
|
$
|
100,311
|
|
|
$
|
70,636
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Service cost
|
$
|
2,683
|
|
|
$
|
3,684
|
|
|
$
|
3,563
|
|
Interest cost
|
9,951
|
|
|
9,503
|
|
|
11,187
|
|
|||
Amortization of prior service cost (credit)
|
159
|
|
|
128
|
|
|
(1,724
|
)
|
|||
Amortization of net actuarial loss
|
5,949
|
|
|
7,433
|
|
|
8,214
|
|
|||
Curtailment
|
—
|
|
|
2,920
|
|
|
—
|
|
|||
Net periodic benefit cost
|
$
|
18,742
|
|
|
$
|
23,668
|
|
|
$
|
21,240
|
|
|
2014
|
|
2013
|
||||
Net actuarial loss (gain)
|
$
|
35,372
|
|
|
$
|
(34,890
|
)
|
Amortization of net actuarial loss
|
(5,949
|
)
|
|
(7,433
|
)
|
||
Amortization of prior service cost
|
(159
|
)
|
|
(128
|
)
|
||
Curtailment
|
—
|
|
|
(2,920
|
)
|
||
Other adjustments
|
412
|
|
|
481
|
|
||
Total recognized in other comprehensive income
|
$
|
29,676
|
|
|
$
|
(44,890
|
)
|
Net actuarial loss
|
$
|
9,619
|
|
Prior service cost
|
297
|
|
|
Total
|
$
|
9,916
|
|
|
2014
|
|
2013
|
|
2012
|
|||
Discount rate used to determine benefit obligation
|
|
|
|
|
|
|||
U.S.
|
3.90
|
%
|
|
4.40
|
%
|
|
3.65
|
%
|
Canada
|
3.80
|
%
|
|
4.65
|
%
|
|
3.90
|
%
|
|
|
|
|
|
|
|||
Discount rate used to determine net period benefit cost
|
|
|
|
|
|
|||
U.S.
|
4.40
|
%
|
|
3.65
|
%
|
|
4.50
|
%
|
Canada
|
4.65
|
%
|
|
3.90
|
%
|
|
4.15
|
%
|
|
1% Increase
|
|
1% Decrease
|
||||
Effect on total of service and interest cost components
|
$
|
548
|
|
|
$
|
(431
|
)
|
Effect on postretirement benefit obligation
|
$
|
9,512
|
|
|
$
|
(8,829
|
)
|
|
Pension Benefits
|
|
Nonpension Benefits
|
||||
Years ending December 31,
|
|
|
|
||||
2015
|
$
|
126,662
|
|
|
$
|
22,187
|
|
2016
|
125,924
|
|
|
21,530
|
|
||
2017
|
127,549
|
|
|
20,863
|
|
||
2018
|
130,141
|
|
|
20,174
|
|
||
2019
|
131,871
|
|
|
19,567
|
|
||
2020 - 2024
|
676,833
|
|
|
88,921
|
|
||
|
$
|
1,318,980
|
|
|
$
|
193,242
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
U.S. Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
71,683
|
|
|
$
|
78,315
|
|
|
$
|
151,984
|
|
Deferred
|
6,941
|
|
|
(19,754
|
)
|
|
16,136
|
|
|||
|
78,624
|
|
|
58,561
|
|
|
168,120
|
|
|||
U.S. State and Local:
|
|
|
|
|
|
||||||
Current
|
7,186
|
|
|
5,359
|
|
|
(2,604
|
)
|
|||
Deferred
|
(9,307
|
)
|
|
(8,026
|
)
|
|
(26,273
|
)
|
|||
|
(2,121
|
)
|
|
(2,667
|
)
|
|
(28,877
|
)
|
|||
International:
|
|
|
|
|
|
||||||
Current
|
32,492
|
|
|
28,063
|
|
|
57,906
|
|
|||
Deferred
|
3,820
|
|
|
(5,990
|
)
|
|
(82,862
|
)
|
|||
|
36,312
|
|
|
22,073
|
|
|
(24,956
|
)
|
|||
|
|
|
|
|
|
||||||
Total current
|
111,361
|
|
|
111,737
|
|
|
207,286
|
|
|||
Total deferred
|
1,454
|
|
|
(33,770
|
)
|
|
(92,999
|
)
|
|||
Total provision for income taxes
|
$
|
112,815
|
|
|
$
|
77,967
|
|
|
$
|
114,287
|
|
|
|
|
|
|
|
||||||
Effective tax rate
|
26.2
|
%
|
|
20.3
|
%
|
|
22.3
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Federal statutory provision
|
$
|
150,920
|
|
|
$
|
134,389
|
|
|
$
|
179,119
|
|
State and local income taxes
|
(1,379
|
)
|
|
(1,733
|
)
|
|
(2,071
|
)
|
|||
Other impact of foreign operations
|
(12,668
|
)
|
|
(28,238
|
)
|
|
23,025
|
|
|||
Tax exempt income/reimbursement
|
(1,327
|
)
|
|
(1,672
|
)
|
|
(1,992
|
)
|
|||
Federal income tax credits/incentives
|
(17,905
|
)
|
|
(10,282
|
)
|
|
(8,918
|
)
|
|||
Unrealized stock compensation benefits
|
2,318
|
|
|
2,292
|
|
|
3,456
|
|
|||
Resolution of U.S. tax examinations
|
(5,856
|
)
|
|
(3,853
|
)
|
|
(47,380
|
)
|
|||
Impact of non-U.S. leveraged lease asset sales
|
—
|
|
|
—
|
|
|
(30,367
|
)
|
|||
Outside basis differences
|
—
|
|
|
(13,214
|
)
|
|
—
|
|
|||
Other, net
|
(1,288
|
)
|
|
278
|
|
|
(585
|
)
|
|||
Provision for income taxes
|
$
|
112,815
|
|
|
$
|
77,967
|
|
|
$
|
114,287
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Depreciation
|
$
|
(60,282
|
)
|
|
$
|
(33,057
|
)
|
Deferred profit (for tax purposes) on sale to finance subsidiary
|
(114,633
|
)
|
|
(142,114
|
)
|
||
Lease revenue and related depreciation
|
(205,683
|
)
|
|
(249,998
|
)
|
||
Amortizable intangibles
|
(74,034
|
)
|
|
(79,852
|
)
|
||
Other
|
(64,900
|
)
|
|
(73,077
|
)
|
||
Deferred tax liabilities
|
(519,532
|
)
|
|
(578,098
|
)
|
||
|
|
|
|
||||
Deferred tax assets:
|
|
|
|
||||
Nonpension postretirement benefits
|
82,181
|
|
|
99,628
|
|
||
Pension
|
141,492
|
|
|
43,301
|
|
||
Inventory and equipment capitalization
|
18,502
|
|
|
22,824
|
|
||
Restructuring charges
|
35,432
|
|
|
26,837
|
|
||
Long-term incentives
|
25,718
|
|
|
28,880
|
|
||
Net operating loss
|
102,686
|
|
|
143,839
|
|
||
Tax credit carry forwards
|
47,493
|
|
|
48,617
|
|
||
Tax uncertainties gross-up
|
22,851
|
|
|
35,298
|
|
||
Other
|
125,512
|
|
|
147,709
|
|
||
Valuation allowance
|
(116,935
|
)
|
|
(122,780
|
)
|
||
Deferred tax assets
|
484,932
|
|
|
474,153
|
|
||
Total deferred taxes, net
|
$
|
(34,600
|
)
|
|
$
|
(103,945
|
)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at beginning of year
|
$
|
172,594
|
|
|
$
|
151,098
|
|
|
$
|
202,828
|
|
Increases from prior period positions
|
9,090
|
|
|
15,777
|
|
|
11,811
|
|
|||
Decreases from prior period positions
|
(33,692
|
)
|
|
(6,908
|
)
|
|
(17,985
|
)
|
|||
Increases from current period positions
|
17,704
|
|
|
23,549
|
|
|
28,255
|
|
|||
Decreases relating to settlements with tax authorities
|
(22,127
|
)
|
|
(482
|
)
|
|
(1,948
|
)
|
|||
Reductions from lapse of applicable statute of limitations
|
(11,074
|
)
|
|
(10,440
|
)
|
|
(71,863
|
)
|
|||
Balance at end of year
|
$
|
132,495
|
|
|
$
|
172,594
|
|
|
$
|
151,098
|
|
Years ending December 31,
|
|
||
2015
|
$
|
47,496
|
|
2016
|
35,864
|
|
|
2017
|
26,306
|
|
|
2018
|
19,899
|
|
|
2019
|
14,313
|
|
|
Thereafter
|
67,726
|
|
|
Total minimum lease payments
|
$
|
211,604
|
|
|
Common Stock
|
|
Treasury Stock
|
||
Balance at December 31, 2011
|
199,751,070
|
|
|
123,586,842
|
|
Issuance of common stock
|
1,118,089
|
|
|
(1,118,089
|
)
|
Conversions to common stock
|
14,888
|
|
|
(14,888
|
)
|
Balance at December 31, 2012
|
200,884,047
|
|
|
122,453,865
|
|
Issuance of common stock
|
1,163,668
|
|
|
(1,163,668
|
)
|
Conversions to common stock
|
34,807
|
|
|
(34,807
|
)
|
Balance at December 31, 2013
|
202,082,522
|
|
|
121,255,390
|
|
Repurchases of common stock
|
(1,863,262
|
)
|
|
1,863,262
|
|
Issuance of common stock
|
781,032
|
|
|
(781,032
|
)
|
Conversions to common stock
|
27,672
|
|
|
(27,672
|
)
|
Balance at December 31, 2014
|
201,027,964
|
|
|
122,309,948
|
|
|
Amounts Reclassified from AOCI (a)
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Gains (losses) on cash flow hedges
|
|
|
|
|
|
||||||
Revenue
|
$
|
1,276
|
|
|
$
|
(835
|
)
|
|
$
|
1,298
|
|
Cost of sales
|
(140
|
)
|
|
332
|
|
|
(185
|
)
|
|||
Interest expense
|
(2,028
|
)
|
|
(2,028
|
)
|
|
(2,028
|
)
|
|||
Total before tax
|
(892
|
)
|
|
(2,531
|
)
|
|
(915
|
)
|
|||
Tax benefit
|
(347
|
)
|
|
(987
|
)
|
|
(358
|
)
|
|||
Net of tax
|
$
|
(545
|
)
|
|
$
|
(1,544
|
)
|
|
$
|
(557
|
)
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on available for sale securities
|
|
|
|
|
|
||||||
Interest income
|
$
|
(1,149
|
)
|
|
$
|
(1,140
|
)
|
|
$
|
1,768
|
|
Tax (benefit) provision
|
(424
|
)
|
|
(422
|
)
|
|
654
|
|
|||
Net of tax
|
$
|
(725
|
)
|
|
$
|
(718
|
)
|
|
$
|
1,114
|
|
|
|
|
|
|
|
||||||
Pension and Postretirement Benefit Plans (b)
|
|
|
|
|
|
||||||
Transition asset
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
10
|
|
Prior service (costs) credit
|
(111
|
)
|
|
(620
|
)
|
|
809
|
|
|||
Actuarial losses
|
(43,702
|
)
|
|
(54,372
|
)
|
|
(75,274
|
)
|
|||
Total before tax
|
(43,803
|
)
|
|
(54,983
|
)
|
|
(74,455
|
)
|
|||
Tax benefit
|
(15,643
|
)
|
|
(19,228
|
)
|
|
(21,876
|
)
|
|||
Net of tax
|
$
|
(28,160
|
)
|
|
$
|
(35,755
|
)
|
|
$
|
(52,579
|
)
|
(b)
|
These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 13 for additional details).
|
|
Gains (losses) on cash flow hedges
|
|
Unrealized gains (losses) on available for sale securities
|
|
Defined benefit pension plans and nonpension postretirement benefit plans
|
|
Foreign currency items
|
|
Total
|
||||||||||
Balance January 1, 2012
|
$
|
(8,438
|
)
|
|
$
|
4,387
|
|
|
$
|
(741,546
|
)
|
|
$
|
83,952
|
|
|
$
|
(661,645
|
)
|
Other comprehensive income (loss) before reclassifications (a)
|
104
|
|
|
1,240
|
|
|
(70,232
|
)
|
|
(2,702
|
)
|
|
(71,590
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss) (a), (b)
|
557
|
|
|
(1,114
|
)
|
|
52,579
|
|
|
—
|
|
|
52,022
|
|
|||||
Net other comprehensive income (loss)
|
661
|
|
|
126
|
|
|
(17,653
|
)
|
|
(2,702
|
)
|
|
(19,568
|
)
|
|||||
Balance at December 31, 2012
|
(7,777
|
)
|
|
4,513
|
|
|
(759,199
|
)
|
|
81,250
|
|
|
(681,213
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (a)
|
(147
|
)
|
|
(7,000
|
)
|
|
122,023
|
|
|
(39,489
|
)
|
|
75,387
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c)
|
1,544
|
|
|
718
|
|
|
35,755
|
|
|
(6,747
|
)
|
|
31,270
|
|
|||||
Net other comprehensive income (loss)
|
1,397
|
|
|
(6,282
|
)
|
|
157,778
|
|
|
(46,236
|
)
|
|
106,657
|
|
|||||
Balance at December 31, 2013
|
(6,380
|
)
|
|
(1,769
|
)
|
|
(601,421
|
)
|
|
35,014
|
|
|
(574,556
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (a)
|
1,146
|
|
|
4,010
|
|
|
(212,818
|
)
|
|
(89,584
|
)
|
|
(297,246
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c)
|
545
|
|
|
725
|
|
|
28,160
|
|
|
(3,784
|
)
|
|
25,646
|
|
|||||
Net other comprehensive income (loss)
|
1,691
|
|
|
4,735
|
|
|
(184,658
|
)
|
|
(93,368
|
)
|
|
(271,600
|
)
|
|||||
Balance at December 31, 2014
|
$
|
(4,689
|
)
|
|
$
|
2,966
|
|
|
$
|
(786,079
|
)
|
|
$
|
(58,354
|
)
|
|
$
|
(846,156
|
)
|
(c)
|
Foreign currency item amount represents the recognition of deferred translation upon the sale of certain businesses.
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Cost of equipment sales
|
$
|
1,004
|
|
|
$
|
886
|
|
|
$
|
1,212
|
|
Cost of software
|
95
|
|
|
—
|
|
|
—
|
|
|||
Cost of support services
|
607
|
|
|
382
|
|
|
522
|
|
|||
Cost of business services
|
694
|
|
|
527
|
|
|
721
|
|
|||
Selling, general and administrative
|
14,028
|
|
|
11,099
|
|
|
15,176
|
|
|||
Research and development
|
1,018
|
|
|
435
|
|
|
596
|
|
|||
Discontinued operations
(1)
|
—
|
|
|
1,592
|
|
|
—
|
|
|||
Stock-based compensation expense
|
17,446
|
|
|
14,921
|
|
|
18,227
|
|
|||
Tax benefit
|
(5,776
|
)
|
|
(5,759
|
)
|
|
(6,061
|
)
|
|||
Stock-based compensation expense, net of tax
|
$
|
11,670
|
|
|
$
|
9,162
|
|
|
$
|
12,166
|
|
|
2014
|
|
2013
|
||||||||||
|
Shares
|
|
Weighted average grant date fair value
|
|
Shares
|
|
Weighted average grant date fair value
|
||||||
Restricted stock units outstanding - beginning of the year
|
1,941,312
|
|
|
$
|
13.19
|
|
|
1,909,160
|
|
|
$
|
17.68
|
|
Granted
|
685,994
|
|
|
23.62
|
|
|
1,365,798
|
|
|
10.37
|
|
||
Vested
|
(713,886
|
)
|
|
14.50
|
|
|
(1,049,572
|
)
|
|
17.52
|
|
||
Forfeited
|
(94,181
|
)
|
|
15.11
|
|
|
(284,074
|
)
|
|
13.33
|
|
||
Restricted stock units outstanding - end of the year
|
1,819,239
|
|
|
$
|
16.41
|
|
|
1,941,312
|
|
|
$
|
13.19
|
|
|
2014
|
|
2013
|
||||||||||
|
Shares
|
|
Weighted average grant date fair value
|
|
Shares
|
|
Weighted average grant date fair value
|
||||||
Market stock units outstanding - beginning of the year
|
188,427
|
|
|
$
|
17.91
|
|
|
198,145
|
|
|
$
|
17.91
|
|
Forfeited
|
—
|
|
|
—
|
|
|
(9,718
|
)
|
|
17.91
|
|
||
Market stock units outstanding - end of the year
|
188,427
|
|
|
$
|
17.91
|
|
|
188,427
|
|
|
$
|
17.91
|
|
|
Shares
|
|
PSUs outstanding - beginning of the year
|
—
|
|
Granted
|
493,255
|
|
Performance adjustments
|
113,460
|
|
PSUs outstanding - end of the year
|
606,715
|
|
|
2014
|
|
2013
|
||||||||||
|
Shares
|
|
Per share weighted average exercise prices
|
|
Shares
|
|
Per share weighted average exercise prices
|
||||||
Options outstanding - beginning of the year
|
12,396,894
|
|
|
$
|
34.90
|
|
|
13,653,245
|
|
|
$
|
35.28
|
|
Granted
|
—
|
|
|
—
|
|
|
800,000
|
|
|
21.93
|
|
||
Exercised
|
(137,072
|
)
|
|
22.78
|
|
|
(35,461
|
)
|
|
22.09
|
|
||
Canceled
|
(114,925
|
)
|
|
36.05
|
|
|
(628,731
|
)
|
|
32.93
|
|
||
Expired
|
(1,436,203
|
)
|
|
40.06
|
|
|
(1,392,159
|
)
|
|
32.39
|
|
||
Options outstanding - end of the year
|
10,708,694
|
|
|
$
|
34.27
|
|
|
12,396,894
|
|
|
$
|
34.90
|
|
Options exercisable - end of the year
|
9,808,694
|
|
|
$
|
35.60
|
|
|
10,864,753
|
|
|
$
|
36.84
|
|
|
|
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
|
|
2,318,742
|
|
|
$
|
20.26
|
|
|
6.7 years
|
|
1,578,742
|
|
|
$
|
20.89
|
|
|
6.0 years
|
$23.00 - $30.99
|
|
2,410,252
|
|
|
25.31
|
|
|
5.3 years
|
|
2,250,252
|
|
|
25.41
|
|
|
5.1 years
|
||
$31.00 - $45.99
|
|
3,356,418
|
|
|
40.30
|
|
|
2.2 years
|
|
3,356,418
|
|
|
40.30
|
|
|
2.2 years
|
||
$46.00 - $48.03
|
|
2,623,282
|
|
|
47.20
|
|
|
0.6 years
|
|
2,623,282
|
|
|
47.20
|
|
|
0.6 years
|
||
|
|
10,708,694
|
|
|
$
|
34.27
|
|
|
3.5 years
|
|
9,808,694
|
|
|
$
|
35.60
|
|
|
3.1 years
|
|
Years Ended December 31,
|
||||
|
2013
|
|
2012
|
||
Expected dividend yield
|
7.7
|
%
|
|
9.3
|
%
|
Expected stock price volatility
|
29.5
|
%
|
|
30.0
|
%
|
Risk-free interest rate
|
1.8
|
%
|
|
1.2
|
%
|
Expected life
|
7.9 years
|
|
|
7.9 years
|
|
Weighted-average fair value per option granted
|
$0.88
|
|
$0.48
|
||
Fair value of options granted (in thousands)
|
$704
|
|
$288
|
|
First
Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||||||
2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
937,497
|
|
|
$
|
958,450
|
|
|
$
|
941,644
|
|
|
$
|
983,913
|
|
|
$
|
3,821,504
|
|
Cost of revenues
|
409,866
|
|
|
423,159
|
|
|
421,544
|
|
|
426,222
|
|
|
1,680,791
|
|
|||||
Operating expenses
|
473,129
|
|
|
396,814
|
|
|
378,563
|
|
|
461,011
|
|
|
1,709,517
|
|
|||||
Income from continuing operations before income taxes
|
54,502
|
|
|
138,477
|
|
|
141,537
|
|
|
96,680
|
|
|
431,196
|
|
|||||
Provision for income taxes
|
8,036
|
|
|
46,335
|
|
|
25,310
|
|
|
33,134
|
|
|
112,815
|
|
|||||
Income from continuing operations
|
46,466
|
|
|
92,142
|
|
|
116,227
|
|
|
63,546
|
|
|
318,381
|
|
|||||
Income from discontinued operations
|
2,801
|
|
|
6,717
|
|
|
20,655
|
|
|
3,576
|
|
|
33,749
|
|
|||||
Net income before attribution of noncontrolling interests
|
49,267
|
|
|
98,859
|
|
|
136,882
|
|
|
67,122
|
|
|
352,130
|
|
|||||
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.
|
$
|
44,673
|
|
|
$
|
94,265
|
|
|
$
|
132,289
|
|
|
$
|
62,528
|
|
|
$
|
333,755
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
41,872
|
|
|
$
|
87,548
|
|
|
$
|
111,634
|
|
|
$
|
58,952
|
|
|
$
|
300,006
|
|
Income from discontinued operations
|
2,801
|
|
|
6,717
|
|
|
20,655
|
|
|
3,576
|
|
|
33,749
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
44,673
|
|
|
$
|
94,265
|
|
|
$
|
132,289
|
|
|
$
|
62,528
|
|
|
$
|
333,755
|
|
Basic earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.21
|
|
|
$
|
0.43
|
|
|
$
|
0.55
|
|
|
$
|
0.29
|
|
|
$
|
1.49
|
|
Discontinued operations
|
0.01
|
|
|
0.03
|
|
|
0.10
|
|
|
0.02
|
|
|
0.17
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.22
|
|
|
$
|
0.47
|
|
|
$
|
0.65
|
|
|
$
|
0.31
|
|
|
$
|
1.65
|
|
Diluted earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.21
|
|
|
$
|
0.43
|
|
|
$
|
0.55
|
|
|
$
|
0.29
|
|
|
$
|
1.47
|
|
Discontinued operations
|
0.01
|
|
|
0.03
|
|
|
0.10
|
|
|
0.02
|
|
|
0.17
|
|
|||||
Net income - Pitney Bowes Inc.
|
$
|
0.22
|
|
|
$
|
0.46
|
|
|
$
|
0.65
|
|
|
$
|
0.31
|
|
|
$
|
1.64
|
|
(1)
|
The sum of the earnings per share amounts may not equal the totals due to rounding.
|
|
First
Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
909,363
|
|
|
$
|
950,662
|
|
|
$
|
920,489
|
|
|
$
|
1,010,821
|
|
|
$
|
3,791,335
|
|
Cost of revenues
|
392,481
|
|
|
411,499
|
|
|
394,861
|
|
|
451,781
|
|
|
1,650,622
|
|
|||||
Operating expenses
|
435,017
|
|
|
430,330
|
|
|
438,028
|
|
|
453,384
|
|
|
1,756,759
|
|
|||||
Income from continuing operations before income taxes
|
81,865
|
|
|
108,833
|
|
|
87,600
|
|
|
105,656
|
|
|
383,954
|
|
|||||
Provision for income taxes
|
17,795
|
|
|
24,218
|
|
|
10,032
|
|
|
25,922
|
|
|
77,967
|
|
|||||
Income from continuing operations
|
64,070
|
|
|
84,615
|
|
|
77,568
|
|
|
79,734
|
|
|
305,987
|
|
|||||
Income (loss) from discontinued operations
|
8,030
|
|
|
(89,254
|
)
|
|
(78,501
|
)
|
|
14,948
|
|
|
(144,777
|
)
|
|||||
Net income (loss) before attribution of noncontrolling interests
|
72,100
|
|
|
(4,639
|
)
|
|
(933
|
)
|
|
94,682
|
|
|
161,210
|
|
|||||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests
|
4,594
|
|
|
4,594
|
|
|
4,594
|
|
|
4,593
|
|
|
18,375
|
|
|||||
Net income (loss) - Pitney Bowes Inc.
|
$
|
67,506
|
|
|
$
|
(9,233
|
)
|
|
$
|
(5,527
|
)
|
|
$
|
90,089
|
|
|
$
|
142,835
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
59,476
|
|
|
$
|
80,021
|
|
|
$
|
72,974
|
|
|
$
|
75,141
|
|
|
$
|
287,612
|
|
Income (loss) from discontinued operations
|
8,030
|
|
|
(89,254
|
)
|
|
(78,501
|
)
|
|
14,948
|
|
|
(144,777
|
)
|
|||||
Net income (loss) - Pitney Bowes Inc.
|
$
|
67,506
|
|
|
$
|
(9,233
|
)
|
|
$
|
(5,527
|
)
|
|
$
|
90,089
|
|
|
$
|
142,835
|
|
Basic earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.30
|
|
|
$
|
0.40
|
|
|
$
|
0.36
|
|
|
$
|
0.37
|
|
|
$
|
1.43
|
|
Discontinued operations
|
0.04
|
|
|
(0.44
|
)
|
|
(0.39
|
)
|
|
0.07
|
|
|
(0.72
|
)
|
|||||
Net income (loss) - Pitney Bowes Inc.
|
$
|
0.34
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
0.45
|
|
|
$
|
0.71
|
|
Diluted earnings per share attributable to common stockholders
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.29
|
|
|
$
|
0.39
|
|
|
$
|
0.36
|
|
|
$
|
0.37
|
|
|
$
|
1.42
|
|
Discontinued operations
|
0.04
|
|
|
(0.44
|
)
|
|
(0.39
|
)
|
|
0.07
|
|
|
(0.71
|
)
|
|||||
Net income (loss) - Pitney Bowes Inc.
|
$
|
0.33
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
0.44
|
|
|
$
|
0.70
|
|
(1)
|
The sum of the earnings per share amounts may not equal the totals due to rounding.
|
Description
|
|
Balance at beginning of year
|
|
Additions charged to expense
|
|
Deductions
|
|
Balance at end of year
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
||||||||||||||||
2014
|
|
$
|
13,149
|
|
|
$
|
2,041
|
|
|
$
|
(4,448
|
)
|
|
$
|
10,742
|
|
2013
|
|
$
|
20,219
|
|
|
$
|
3,881
|
|
|
$
|
(10,951
|
)
|
|
$
|
13,149
|
|
2012
|
|
$
|
25,667
|
|
|
$
|
13,112
|
|
|
$
|
(18,560
|
)
|
|
$
|
20,219
|
|
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance for deferred tax asset
|
||||||||||||||||
2014
|
|
$
|
122,780
|
|
|
$
|
636
|
|
|
$
|
(6,481
|
)
|
|
$
|
116,935
|
|
2013
|
|
$
|
142,176
|
|
|
$
|
15,921
|
|
|
$
|
(35,317
|
)
|
|
$
|
122,780
|
|
2012
|
|
$
|
111,438
|
|
|
$
|
40,078
|
|
|
$
|
(9,340
|
)
|
|
$
|
142,176
|
|
5.
|
DIVIDENDS; TRANSFER RESTRICTIONS; TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS:
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
$
|
431,196
|
|
|
$
|
383,954
|
|
|
$
|
511,770
|
|
|
$
|
465,616
|
|
|
$
|
431,678
|
|
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
174,661
|
|
|
195,836
|
|
|
196,368
|
|
|
203,061
|
|
|
203,911
|
|
|||||
Portion of rents representative of the interest factor
|
18,367
|
|
|
22,259
|
|
|
22,564
|
|
|
25,893
|
|
|
25,270
|
|
|||||
Amortization of capitalized interest
|
—
|
|
|
—
|
|
|
973
|
|
|
1,535
|
|
|
1,716
|
|
|||||
Income as adjusted
|
$
|
624,224
|
|
|
$
|
602,049
|
|
|
$
|
731,675
|
|
|
$
|
696,105
|
|
|
$
|
662,575
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
$
|
174,661
|
|
|
$
|
195,836
|
|
|
$
|
196,368
|
|
|
$
|
203,061
|
|
|
$
|
203,911
|
|
Portion of rents representative of the interest factor
|
18,367
|
|
|
22,259
|
|
|
22,564
|
|
|
25,893
|
|
|
25,270
|
|
|||||
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes
|
29,878
|
|
|
27,841
|
|
|
27,841
|
|
|
27,507
|
|
|
29,790
|
|
|||||
Total fixed charges
|
$
|
222,906
|
|
|
$
|
245,936
|
|
|
$
|
246,773
|
|
|
$
|
256,461
|
|
|
$
|
258,971
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
(2)
|
2.80
|
|
2.45
|
|
2.96
|
|
2.71
|
|
2.56
|
(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
|
AIT Quest Trustee Ltd
|
UK
|
Alternative Mail & Parcel Investments Limited
|
UK
|
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 Software, Inc.
|
Canada
|
Encom Europe Limited
|
UK
|
Factor Humano y Cadena de Personal, S.A. de C.V.
|
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
|
Imagitas, Inc.
|
Delaware
|
Mag Systèmes SAS
|
France
|
MapInfo Realty LLC
|
New York
|
OLDEMT LIMITED
|
UK
|
OldMS Limited
|
UK
|
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 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 VII 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 (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 Australia FAS Pty Limited
|
Australia
|
Pitney Bowes Australia Pty Limited
|
Australia
|
Pitney Bowes Batsumi Enterprise (Pty) Limited
|
South Africa
|
Pitney Bowes Brasil Equipamentos e Servicos Ltda
|
Brazil
|
Pitney Bowes Canada II LP
|
Canada
|
Pitney Bowes Canada LP
|
Canada
|
Pitney Bowes Credit Australia Limited
|
Australia
|
Pitney Bowes Cross Border Services Inc.
|
Delaware
|
Pitney Bowes Danmark A/S
|
Denmark
|
Pitney Bowes de Mexico, S.A. de C.V.
|
Mexico
|
Pitney Bowes Deutschland GmbH
|
Germany
|
Pitney Bowes Europe Limited
|
UK
|
Pitney Bowes Finance Ireland Limited
|
Ireland
|
Pitney Bowes Finance Limited
|
UK
|
Pitney Bowes Global Financial Services LLC
|
Delaware
|
Pitney Bowes Global Limited
|
UK
|
Pitney Bowes Global LLC
|
Delaware
|
Pitney Bowes Holdco Limited
|
UK
|
Pitney Bowes Holding SNC
|
France
|
Pitney Bowes Holdings Limited
|
UK
|
Pitney Bowes Hong Kong Limited
|
Hong Kong
|
Pitney Bowes India Private Limited
|
India
|
Pitney Bowes International Funding
|
Ireland
|
Pitney Bowes International Holdings, Inc.
|
Delaware
|
Pitney Bowes International Mail Services Limited
|
UK
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Pitney Bowes Ireland Limited
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Ireland
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Pitney Bowes Italia S.r.l.
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Italy
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Pitney Bowes Japan K.K.
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Japan
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Pitney Bowes Limited
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UK
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Pitney Bowes Luxembourg Holding II S.a.r.l.
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Luxembourg
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Pitney Bowes Luxembourg Holding S.a.r.l.
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Luxembourg
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Pitney Bowes Mail and Messaging Systems (Shanghai) Co., Ltd.
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China
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Pitney Bowes MapInfo Business Applications Limited
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UK
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Pitney Bowes MapInfo GDC Limited
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UK
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Pitney Bowes MapInfo Scotland Limited
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UK
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Pitney Bowes Middle East FZ-LLC
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Dubai
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Pitney Bowes New Zealand Limited
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New Zealand
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Pitney Bowes Norge AS
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Norway
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Pitney Bowes Nova Scotia ULC
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Canada
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Pitney Bowes of Canada Ltd. - Pitney Bowes du Canada Ltee
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Canada
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Pitney Bowes Oy
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Finland
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Pitney Bowes Polska Sp. z.o.o.
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Poland
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Pitney Bowes Presort Services, Inc.
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Delaware
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Pitney Bowes Properties Inc.
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Connecticut
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Pitney Bowes Puerto Rico, Inc.
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Puerto Rico
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Pitney Bowes SA (Pty) Ltd
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South Africa
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Pitney Bowes SAS
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France
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Pitney Bowes Servicios, S.A. de C.V.
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Mexico
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Pitney Bowes Shelton Realty Inc.
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Connecticut
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Pitney Bowes Software (Beijing) Ltd
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China
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Pitney Bowes Software Canada Inc.
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Canada
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Pitney Bowes Software Europe Holdco Limited
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UK
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Pitney Bowes Software Europe Limited
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UK
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Pitney Bowes Software GmbH
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Germany
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Pitney Bowes Software Holdings Limited
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UK
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Pitney Bowes Software Inc.
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Delaware
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Pitney Bowes Software India Private Limited
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India
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Pitney Bowes Software K. K.
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Japan
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Pitney Bowes Software Latin America Inc.
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Delaware
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Pitney Bowes Software Limited
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UK
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Pitney Bowes Software Pte. Ltd
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Singapore
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Pitney Bowes Software Pty Ltd
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Australia
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Pitney Bowes Software SAS
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France
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Pitney Bowes Svenska Aktiebolag
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Sweden
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Pitney Bowes UK LP
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UK
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PitneyWorks.com Inc.
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Delaware
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PitneyWorks.com L.L.C.
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Delaware
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Portrait International, Inc.
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Ohio
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Portrait Million Handshakes AS
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Norway
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Portrait Software International Limited
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UK
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Portrait Software Limited
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UK
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Portrait Software UK Limited
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UK
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Print, Inc.
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Washington
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Quadstone Paramics Ltd
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Scotland
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Quadstone Trustee Company Limited
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Scotland
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Technopli SARL
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France
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The Pitney Bowes Bank, Inc.
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Utah
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Volly LLC
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Delaware
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Wheeler Insurance, Ltd.
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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.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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.
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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):
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a.
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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
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b.
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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.
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/s/ Marc B. Lautenbach
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Marc B. Lautenbach
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President and Chief Executive Officer
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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.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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.
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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):
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a.
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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
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b.
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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.
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/s/ Michael Monahan
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Michael Monahan
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Executive Vice President, Chief Operating Officer and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Marc B. Lautenbach
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Marc B. Lautenbach
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President and Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Michael Monahan
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Michael Monahan
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Executive Vice President, Chief Operating Officer and Chief Financial Officer
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