State of incorporation: | Delaware | I.R.S. Employer Identification No. | 06-0495050 |
Address of Principal Executive Offices: | 3001 Summer Street, | Stamford, | Connecticut | 06926 | ||||||||||||||||
Telephone Number: | (203) | 356-5000 |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, $1 par value per share | PBI | New York Stock Exchange | ||||||||||||
6.7% Notes due 2043 | PBI.PRB | New York Stock Exchange |
Large accelerated filer | þ | Accelerated filer | ☐ | Non-accelerated filer | o | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page Number | ||||||||
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021 | ||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2022 and 2021 | ||||||||
Condensed Consolidated Balance Sheets at June 30, 2022 and December 31, 2021 | ||||||||
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 | ||||||||
Item 6: | Exhibits | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Business services | $ | 551,478 | $ | 567,022 | $ | 1,148,862 | $ | 1,137,476 | |||||||||||||||
Support services | 107,625 | 115,156 | 217,977 | 233,853 | |||||||||||||||||||
Financing | 67,298 | 73,453 | 139,327 | 151,265 | |||||||||||||||||||
Equipment sales | 89,986 | 86,267 | 179,282 | 173,070 | |||||||||||||||||||
Supplies | 38,245 | 38,655 | 79,306 | 80,879 | |||||||||||||||||||
Rentals | 16,863 | 18,650 | 33,683 | 37,857 | |||||||||||||||||||
Total revenue | 871,495 | 899,203 | 1,798,437 | 1,814,400 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of business services | 477,544 | 482,814 | 980,759 | 982,348 | |||||||||||||||||||
Cost of support services | 37,711 | 37,679 | 74,845 | 74,396 | |||||||||||||||||||
Financing interest expense | 12,533 | 11,773 | 24,135 | 23,659 | |||||||||||||||||||
Cost of equipment sales | 63,815 | 61,561 | 127,586 | 123,401 | |||||||||||||||||||
Cost of supplies | 11,028 | 10,467 | 22,545 | 21,678 | |||||||||||||||||||
Cost of rentals | 7,473 | 6,013 | 12,782 | 12,460 | |||||||||||||||||||
Selling, general and administrative | 226,638 | 236,190 | 469,423 | 474,292 | |||||||||||||||||||
Research and development | 11,254 | 11,059 | 22,588 | 22,375 | |||||||||||||||||||
Restructuring charges | 4,224 | 4,844 | 8,408 | 7,733 | |||||||||||||||||||
Interest expense, net | 21,007 | 24,346 | 43,131 | 49,504 | |||||||||||||||||||
Other components of net pension and postretirement cost | 958 | 312 | 1,802 | 662 | |||||||||||||||||||
Other (income) expense | — | (13,646) | (11,901) | 37,748 | |||||||||||||||||||
Total costs and expenses | 874,185 | 873,412 | 1,776,103 | 1,830,256 | |||||||||||||||||||
(Loss) income from continuing operations before taxes | (2,690) | 25,791 | 22,334 | (15,856) | |||||||||||||||||||
(Benefit) provision for income taxes | (7,026) | 4,915 | (2,823) | (9,077) | |||||||||||||||||||
Income (loss) from continuing operations | 4,336 | 20,876 | 25,157 | (6,779) | |||||||||||||||||||
Loss from discontinued operations, net of tax | — | (1,020) | — | (4,906) | |||||||||||||||||||
Net income (loss) | $ | 4,336 | $ | 19,856 | $ | 25,157 | $ | (11,685) | |||||||||||||||
Basic earnings (loss) per share (1): | |||||||||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | (0.04) | |||||||||||||||
Discontinued operations | — | (0.01) | — | (0.03) | |||||||||||||||||||
Net income (loss) | $ | 0.02 | $ | 0.11 | $ | 0.14 | $ | (0.07) | |||||||||||||||
Diluted earnings (loss) per share (1): | |||||||||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | (0.04) | |||||||||||||||
Discontinued operations | — | (0.01) | — | (0.03) | |||||||||||||||||||
Net income (loss) | $ | 0.02 | $ | 0.11 | $ | 0.14 | $ | (0.07) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | 4,336 | $ | 19,856 | $ | 25,157 | $ | (11,685) | |||||||||||||||
Other comprehensive loss (income), net of tax: | |||||||||||||||||||||||
Foreign currency translation, net of tax of $(2,907), $309, $(3,074) and $297, respectively | (48,138) | 3,509 | (65,703) | (10,749) | |||||||||||||||||||
Net unrealized gain (loss) on cash flow hedges, net of tax of $407, $(466), $2,176 and $1,135, respectively | 1,229 | (1,406) | 6,562 | 3,424 | |||||||||||||||||||
Net unrealized (loss) gain on investment securities, net of tax of $(3,661), $1,306, $(8,808) and $(1,650), respectively | (11,043) | 3,939 | (26,565) | (4,977) | |||||||||||||||||||
Amortization of pension and postretirement costs, net of tax of $1,870, $3,303, $4,331 and $6,511, respectively | 8,229 | 10,193 | 15,965 | 20,130 | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | (49,723) | 16,235 | (69,741) | 7,828 | |||||||||||||||||||
Comprehensive (loss) income | $ | (45,387) | $ | 36,091 | $ | (44,584) | $ | (3,857) |
June 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 570,697 | $ | 732,480 | |||||||
Short-term investments (includes $2,534 and $2,658, respectively, reported at fair value) | 11,519 | 14,440 | |||||||||
Accounts and other receivables (net of allowance of $12,176 and $11,168, respectively) | 268,722 | 334,630 | |||||||||
Short-term finance receivables (net of allowance of $11,801 and $12,812, respectively) | 557,571 | 560,680 | |||||||||
Inventories | 82,797 | 78,588 | |||||||||
Current income taxes | 15,875 | 13,894 | |||||||||
Other current assets and prepayments | 151,090 | 120,947 | |||||||||
Assets held for sale | 108,677 | 36,394 | |||||||||
Total current assets | 1,766,948 | 1,892,053 | |||||||||
Property, plant and equipment, net | 427,438 | 429,162 | |||||||||
Rental property and equipment, net | 30,889 | 34,774 | |||||||||
Long-term finance receivables (net of allowance of $12,857 and $13,406 respectively) | 592,928 | 587,427 | |||||||||
Goodwill | 1,060,452 | 1,135,103 | |||||||||
Intangible assets, net | 82,770 | 132,442 | |||||||||
Operating lease assets | 242,452 | 208,428 | |||||||||
Noncurrent income taxes | 62,849 | 68,398 | |||||||||
Other assets (includes $252,457 and $318,754, respectively, reported at fair value) | 410,865 | 471,084 | |||||||||
Total assets | $ | 4,677,591 | $ | 4,958,871 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 827,639 | $ | 922,543 | |||||||
Customer deposits at Pitney Bowes Bank | 616,150 | 632,062 | |||||||||
Current operating lease liabilities | 42,253 | 40,299 | |||||||||
Current portion of long-term debt | 24,752 | 24,739 | |||||||||
Advance billings | 96,573 | 99,280 | |||||||||
Current income taxes | 2,865 | 9,017 | |||||||||
Liabilities held for sale | 18,700 | — | |||||||||
Total current liabilities | 1,628,932 | 1,727,940 | |||||||||
Long-term debt | 2,194,767 | 2,299,099 | |||||||||
Deferred taxes on income | 268,416 | 286,445 | |||||||||
Tax uncertainties and other income tax liabilities | 31,643 | 31,935 | |||||||||
Noncurrent operating lease liabilities | 227,238 | 192,092 | |||||||||
Other noncurrent liabilities | 282,441 | 308,728 | |||||||||
Total liabilities | 4,633,437 | 4,846,239 | |||||||||
Commitments and contingencies (See Note 13) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $1 par value (480,000 shares authorized; 323,338 shares issued) | 323,338 | 323,338 | |||||||||
Additional paid-in capital | — | 2,485 | |||||||||
Retained earnings | 5,137,248 | 5,169,270 | |||||||||
Accumulated other comprehensive loss | (850,053) | (780,312) | |||||||||
Treasury stock, at cost (149,753 and 148,607 shares, respectively) | (4,566,379) | (4,602,149) | |||||||||
Total stockholders’ equity | 44,154 | 112,632 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,677,591 | $ | 4,958,871 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 25,157 | $ | (11,685) | |||||||
Loss from discontinued operations, net of tax | — | 4,906 | |||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||
Depreciation and amortization | 85,472 | 79,416 | |||||||||
Allowance for credit losses | 7,092 | 4,988 | |||||||||
Stock-based compensation | 9,866 | 12,278 | |||||||||
Amortization of debt fees | 2,985 | 4,103 | |||||||||
Loss on debt redemption/refinancing | 4,993 | 52,383 | |||||||||
Restructuring charges | 8,408 | 7,733 | |||||||||
Restructuring payments | (8,255) | (8,825) | |||||||||
Pension contributions and retiree medical payments | (18,559) | (18,784) | |||||||||
Gain on sale of assets | (14,372) | (1,434) | |||||||||
Gain on sale of business | (2,522) | (10,201) | |||||||||
Changes in operating assets and liabilities, net of acquisitions/divestitures: | |||||||||||
Accounts and other receivables | 50,340 | 72,791 | |||||||||
Finance receivables | 1,260 | 30,620 | |||||||||
Inventories | (4,078) | (1,884) | |||||||||
Other current assets and prepayments | (33,833) | 1,567 | |||||||||
Accounts payable and accrued liabilities | (72,101) | (56,038) | |||||||||
Current and noncurrent income taxes | (14,069) | (11,807) | |||||||||
Advance billings | (285) | 5,271 | |||||||||
Other, net | 18,195 | (10,669) | |||||||||
Net cash from operating activities | 45,694 | 144,729 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (64,174) | (83,703) | |||||||||
Purchases of investment securities | (3,988) | (68,143) | |||||||||
Proceeds from sales/maturities of investment securities | 18,601 | 58,870 | |||||||||
Net investment in loan receivables | (22,537) | (2,964) | |||||||||
Proceeds from asset sales | 50,766 | 1,840 | |||||||||
Proceeds from sale of business | 3,284 | 27,573 | |||||||||
Other investing activities | (9,470) | — | |||||||||
Net cash from investing activities - continuing operations | (27,518) | (66,527) | |||||||||
Net cash from investing activities - discontinued operations | — | (1,507) | |||||||||
Net cash from investing activities | (27,518) | (68,034) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from the issuance of debt, net of discount | — | 1,195,500 | |||||||||
Principal payments of debt | (106,779) | (1,339,568) | |||||||||
Premiums and fees paid to redeem/refinance debt | (4,759) | (46,937) | |||||||||
Dividends paid to stockholders | (17,313) | (17,325) | |||||||||
Customer deposits at Pitney Bowes Bank | (15,912) | 15,633 | |||||||||
Common stock repurchases | (13,446) | — | |||||||||
Other financing activities | (8,295) | (6,327) | |||||||||
Net cash from financing activities | (166,504) | (199,024) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (13,455) | 349 | |||||||||
Change in cash and cash equivalents | (161,783) | (121,980) | |||||||||
Cash and cash equivalents at beginning of period | 732,480 | 921,450 | |||||||||
Cash and cash equivalents at end of period | $ | 570,697 | $ | 799,470 | |||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Global Ecommerce | Presort Services | SendTech Solutions | Revenue from products and services | Revenue from leasing transactions and financing | Total consolidated revenue | |||||||||||||||
Major products/service lines | ||||||||||||||||||||
Business services | $ | 393,770 | $ | 138,934 | $ | 18,774 | $ | 551,478 | $ | — | $ | 551,478 | ||||||||
Support services | — | — | 107,625 | 107,625 | — | 107,625 | ||||||||||||||
Financing | — | — | — | — | 67,298 | 67,298 | ||||||||||||||
Equipment sales | — | — | 21,400 | 21,400 | 68,586 | 89,986 | ||||||||||||||
Supplies | — | — | 38,245 | 38,245 | — | 38,245 | ||||||||||||||
Rentals | — | — | — | — | 16,863 | 16,863 | ||||||||||||||
Subtotal | 393,770 | 138,934 | 186,044 | 718,748 | $ | 152,747 | $ | 871,495 | ||||||||||||
Revenue from leasing transactions and financing | — | — | 152,747 | 152,747 | ||||||||||||||||
Total revenue | $ | 393,770 | $ | 138,934 | $ | 338,791 | $ | 871,495 | ||||||||||||
Timing of revenue recognition from products and services | ||||||||||||||||||||
Products/services transferred at a point in time | $ | — | $ | — | $ | 76,153 | $ | 76,153 | ||||||||||||
Products/services transferred over time | 393,770 | 138,934 | 109,891 | 642,595 | ||||||||||||||||
Total | $ | 393,770 | $ | 138,934 | $ | 186,044 | $ | 718,748 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||
Global Ecommerce | Presort Services | SendTech Solutions | Revenue from products and services | Revenue from leasing transactions and financing | Total consolidated revenue | |||||||||||||||
Major products/service lines | ||||||||||||||||||||
Business services | $ | 831,515 | $ | 277,745 | $ | 28,216 | $ | 1,137,476 | $ | — | $ | 1,137,476 | ||||||||
Support services | — | — | 233,853 | 233,853 | — | 233,853 | ||||||||||||||
Financing | — | — | — | — | 151,265 | 151,265 | ||||||||||||||
Equipment sales | — | — | 41,511 | 41,511 | 131,559 | 173,070 | ||||||||||||||
Supplies | — | — | 80,879 | 80,879 | — | 80,879 | ||||||||||||||
Rentals | — | — | — | — | 37,857 | 37,857 | ||||||||||||||
Subtotal | 831,515 | 277,745 | 384,459 | 1,493,719 | $ | 320,681 | $ | 1,814,400 | ||||||||||||
Revenue from leasing transactions and financing | — | — | 320,681 | 320,681 | ||||||||||||||||
Total revenue | $ | 831,515 | $ | 277,745 | $ | 705,140 | $ | 1,814,400 | ||||||||||||
Timing of revenue recognition from products and services | ||||||||||||||||||||
Products/services transferred at a point in time | $ | — | $ | — | $ | 154,811 | $ | 154,811 | ||||||||||||
Products/services transferred over time | 831,515 | 277,745 | 229,648 | 1,338,908 | ||||||||||||||||
Total | $ | 831,515 | $ | 277,745 | $ | 384,459 | $ | 1,493,719 |
Balance sheet location | June 30, 2022 | December 31, 2021 | Increase/ (decrease) | ||||||||||||||||||||
Advance billings, current | Advance billings | $ | 88,504 | $ | 92,926 | $ | (4,422) | ||||||||||||||||
Advance billings, noncurrent | Other noncurrent liabilities | $ | 996 | $ | 1,109 | $ | (113) |
Remainder of 2022 | 2023 | 2024-2027 | Total | |||||||||||||||||||||||
SendTech Solutions | $ | 139,124 | $ | 229,620 | $ | 308,281 | $ | 677,025 |
Revenue | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Global Ecommerce | $ | 393,770 | $ | 418,429 | $ | 812,297 | $ | 831,515 | |||||||||||||||
Presort Services | 138,934 | 134,619 | 299,478 | 277,745 | |||||||||||||||||||
SendTech Solutions | 338,791 | 346,155 | 686,662 | 705,140 | |||||||||||||||||||
Total revenue | $ | 871,495 | $ | 899,203 | $ | 1,798,437 | $ | 1,814,400 |
EBIT | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Global Ecommerce | $ | (28,825) | $ | (10,831) | $ | (42,521) | $ | (37,207) | |||||||||||||||
Presort Services | 12,851 | 16,134 | 32,483 | 35,185 | |||||||||||||||||||
SendTech Solutions | 95,565 | 107,121 | 200,140 | 221,591 | |||||||||||||||||||
Total segment EBIT | 79,591 | 112,424 | 190,102 | 219,569 | |||||||||||||||||||
Reconciliation of Segment EBIT to net income (loss): | |||||||||||||||||||||||
Unallocated corporate expenses | (40,761) | (56,316) | (98,595) | (113,781) | |||||||||||||||||||
Restructuring charges | (4,224) | (4,844) | (8,408) | (7,733) | |||||||||||||||||||
Interest expense, net | (33,540) | (36,119) | (67,266) | (73,163) | |||||||||||||||||||
Loss on debt redemption/refinancing | — | (989) | (4,993) | (52,383) | |||||||||||||||||||
Gain on sale of business | — | 10,201 | 2,522 | 10,201 | |||||||||||||||||||
Gain on sale of assets | — | 1,434 | 14,372 | 1,434 | |||||||||||||||||||
Transaction costs | (3,756) | — | (5,400) | — | |||||||||||||||||||
Benefit (provision) for income taxes | 7,026 | (4,915) | 2,823 | 9,077 | |||||||||||||||||||
Income (loss) from continuing operations | 4,336 | 20,876 | 25,157 | (6,779) | |||||||||||||||||||
Loss from discontinued operations, net of tax | — | (1,020) | — | (4,906) | |||||||||||||||||||
Net income (loss) | $ | 4,336 | $ | 19,856 | $ | 25,157 | $ | (11,685) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | 4,336 | $ | 20,876 | $ | 25,157 | $ | (6,779) | |||||||||||||||
Loss from discontinued operations, net of tax | — | (1,020) | — | (4,906) | |||||||||||||||||||
Net income (loss) | $ | 4,336 | $ | 19,856 | $ | 25,157 | $ | (11,685) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average shares used in basic EPS | 173,490 | 173,970 | 173,859 | 173,367 | |||||||||||||||||||
Dilutive effect of common stock equivalents (1) | 3,479 | 5,009 | 3,814 | — | |||||||||||||||||||
Weighted-average shares used in diluted EPS | 176,969 | 178,979 | 177,673 | 173,367 | |||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | (0.04) | |||||||||||||||
Discontinued operations | — | (0.01) | — | (0.03) | |||||||||||||||||||
Net income (loss) | $ | 0.02 | $ | 0.11 | $ | 0.14 | $ | (0.07) | |||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | (0.04) | |||||||||||||||
Discontinued operations | — | (0.01) | — | (0.03) | |||||||||||||||||||
Net income (loss) | $ | 0.02 | $ | 0.11 | $ | 0.14 | $ | (0.07) | |||||||||||||||
Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive: | 9,602 | 6,451 | 9,602 | 6,451 |
June 30, 2022 | December 31, 2021 | ||||||||||
Raw materials | $ | 22,940 | $ | 22,352 | |||||||
Supplies and service parts | 30,049 | 26,076 | |||||||||
Finished products | 29,808 | 30,160 | |||||||||
Total inventory, net | $ | 82,797 | $ | 78,588 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
North America | International | Total | North America | International | Total | ||||||||||||||||||||||||||||||
Sales-type lease receivables | |||||||||||||||||||||||||||||||||||
Gross finance receivables | $ | 956,365 | $ | 157,740 | $ | 1,114,105 | $ | 958,440 | $ | 187,831 | $ | 1,146,271 | |||||||||||||||||||||||
Unguaranteed residual values | 38,123 | 9,451 | 47,574 | 37,896 | 10,717 | 48,613 | |||||||||||||||||||||||||||||
Unearned income | (237,143) | (48,460) | (285,603) | (246,381) | (56,643) | (303,024) | |||||||||||||||||||||||||||||
Allowance for credit losses | (18,438) | (2,522) | (20,960) | (19,546) | (3,246) | (22,792) | |||||||||||||||||||||||||||||
Net investment in sales-type lease receivables | 738,907 | 116,209 | 855,116 | 730,409 | 138,659 | 869,068 | |||||||||||||||||||||||||||||
Loan receivables | |||||||||||||||||||||||||||||||||||
Loan receivables | 278,472 | 20,609 | 299,081 | 262,310 | 20,155 | 282,465 | |||||||||||||||||||||||||||||
Allowance for credit losses | (3,528) | (170) | (3,698) | (3,259) | (167) | (3,426) | |||||||||||||||||||||||||||||
Net investment in loan receivables | 274,944 | 20,439 | 295,383 | 259,051 | 19,988 | 279,039 | |||||||||||||||||||||||||||||
Net investment in finance receivables | $ | 1,013,851 | $ | 136,648 | $ | 1,150,499 | $ | 989,460 | $ | 158,647 | $ | 1,148,107 |
Sales-type Lease Receivables | Loan Receivables | ||||||||||||||||||||||||||||||||||
North America | International | Total | North America | International | Total | ||||||||||||||||||||||||||||||
Remainder 2022 | $ | 195,735 | $ | 46,071 | $ | 241,806 | $ | 222,590 | $ | 20,609 | $ | 243,199 | |||||||||||||||||||||||
2023 | 324,790 | 49,092 | 373,882 | 21,785 | — | 21,785 | |||||||||||||||||||||||||||||
2024 | 224,487 | 32,113 | 256,600 | 16,518 | — | 16,518 | |||||||||||||||||||||||||||||
2025 | 134,494 | 18,892 | 153,386 | 11,345 | — | 11,345 | |||||||||||||||||||||||||||||
2026 | 65,143 | 8,573 | 73,716 | 4,898 | — | 4,898 | |||||||||||||||||||||||||||||
Thereafter | 11,716 | 2,999 | 14,715 | 1,336 | — | 1,336 | |||||||||||||||||||||||||||||
Total | $ | 956,365 | $ | 157,740 | $ | 1,114,105 | $ | 278,472 | $ | 20,609 | $ | 299,081 |
June 30, 2022 | |||||||||||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | ||||||||||||||||||||||||||||
North America | International | North America | International | Total | |||||||||||||||||||||||||
Past due amounts 0 - 90 days | $ | 949,440 | $ | 155,312 | $ | 273,985 | $ | 20,556 | $ | 1,399,293 | |||||||||||||||||||
Past due amounts > 90 days | 6,925 | 2,428 | 4,487 | 53 | 13,893 | ||||||||||||||||||||||||
Total | $ | 956,365 | $ | 157,740 | $ | 278,472 | $ | 20,609 | $ | 1,413,186 | |||||||||||||||||||
Past due amounts > 90 days | |||||||||||||||||||||||||||||
Still accruing interest | $ | 1,898 | $ | 659 | $ | — | $ | — | $ | 2,557 | |||||||||||||||||||
Not accruing interest | 5,027 | 1,769 | 4,487 | 53 | 11,336 | ||||||||||||||||||||||||
Total | $ | 6,925 | $ | 2,428 | $ | 4,487 | $ | 53 | $ | 13,893 |
December 31, 2021 | |||||||||||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | ||||||||||||||||||||||||||||
North America | International | North America | International | Total | |||||||||||||||||||||||||
Past due amounts 0 - 90 days | $ | 950,138 | $ | 185,057 | $ | 258,514 | $ | 20,018 | $ | 1,413,727 | |||||||||||||||||||
Past due amounts > 90 days | 8,302 | 2,774 | 3,796 | 137 | 15,009 | ||||||||||||||||||||||||
Total | $ | 958,440 | $ | 187,831 | $ | 262,310 | $ | 20,155 | $ | 1,428,736 | |||||||||||||||||||
Past due amounts > 90 days | |||||||||||||||||||||||||||||
Still accruing interest | $ | 4,964 | $ | 682 | $ | — | $ | — | $ | 5,646 | |||||||||||||||||||
Not accruing interest | 3,338 | 2,092 | 3,796 | 137 | 9,363 | ||||||||||||||||||||||||
Total | $ | 8,302 | $ | 2,774 | $ | 3,796 | $ | 137 | $ | 15,009 |
Sales-type Lease Receivables | Loan Receivables | ||||||||||||||||||||||||||||
North America | International | North America | International | Total | |||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 19,546 | $ | 3,246 | $ | 3,259 | $ | 167 | $ | 26,218 | |||||||||||||||||||
Amounts charged to expense | 145 | 73 | 1,408 | 186 | 1,812 | ||||||||||||||||||||||||
Write-offs | (2,806) | (433) | (2,491) | (152) | (5,882) | ||||||||||||||||||||||||
Recoveries | 1,572 | — | 1,354 | — | 2,926 | ||||||||||||||||||||||||
Other | (19) | (364) | (2) | (31) | (416) | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 18,438 | $ | 2,522 | $ | 3,528 | $ | 170 | $ | 24,658 | |||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | ||||||||||||||||||||||||||||
North America | International | North America | International | Total | |||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 22,917 | $ | 6,006 | $ | 6,484 | $ | 462 | $ | 35,869 | |||||||||||||||||||
Amounts charged to expense | 1,127 | (81) | 1,477 | (23) | 2,500 | ||||||||||||||||||||||||
Write-offs | (2,226) | (631) | (3,392) | (29) | (6,278) | ||||||||||||||||||||||||
Recoveries | 1,500 | 146 | 1,862 | 1 | 3,509 | ||||||||||||||||||||||||
Other | 34 | (78) | 5 | 5 | (34) | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 23,352 | $ | 5,362 | $ | 6,436 | $ | 416 | $ | 35,566 |
June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Sales Type Lease Receivables | Loan Receivables | Total | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||||||||||||||||||
Low | $ | 149,028 | $ | 239,044 | $ | 168,984 | $ | 131,081 | $ | 64,344 | $ | 25,612 | $ | 201,467 | $ | 979,560 | |||||||||||||||||||||||||||||||
Medium | 24,967 | 40,808 | 30,332 | 24,239 | 11,813 | 5,657 | 62,402 | 200,218 | |||||||||||||||||||||||||||||||||||||||
High | 3,096 | 4,588 | 4,415 | 3,068 | 1,520 | 906 | 4,974 | 22,567 | |||||||||||||||||||||||||||||||||||||||
Not Scored | 34,763 | 64,173 | 38,386 | 28,750 | 13,150 | 1,381 | 30,238 | 210,841 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 211,854 | $ | 348,613 | $ | 242,117 | $ | 187,138 | $ | 90,827 | $ | 33,556 | $ | 299,081 | $ | 1,413,186 | |||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Sales Type Lease Receivables | Loan Receivables | Total | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | ||||||||||||||||||||||||||||||||||||||||||
Low | $ | 274,191 | $ | 195,421 | $ | 162,479 | $ | 95,661 | $ | 33,698 | $ | 14,862 | $ | 192,161 | $ | 968,473 | |||||||||||||||||||||||||||||||
Medium | 43,403 | 34,955 | 31,038 | 17,895 | 6,981 | 3,619 | 55,708 | 193,599 | |||||||||||||||||||||||||||||||||||||||
High | 5,474 | 5,017 | 4,044 | 2,708 | 849 | 889 | 4,822 | 23,803 | |||||||||||||||||||||||||||||||||||||||
Not Scored | 45,644 | 54,097 | 47,973 | 33,998 | 19,161 | 12,214 | 29,774 | 242,861 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 368,712 | $ | 289,490 | $ | 245,534 | $ | 150,262 | $ | 60,689 | $ | 31,584 | $ | 282,465 | $ | 1,428,736 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Profit recognized at commencement | $ | 34,337 | $ | 32,057 | $ | 69,378 | $ | 64,365 | |||||||||||||||
Interest income | 41,021 | 47,770 | 83,304 | 96,266 | |||||||||||||||||||
Total lease income from sales-type leases | $ | 75,358 | $ | 79,827 | $ | 152,682 | $ | 160,631 |
Remainder 2022 | $ | 12,021 | |||
2023 | 17,793 | ||||
2024 | 16,087 | ||||
2025 | 7,914 | ||||
2026 | 2,177 | ||||
Thereafter | 453 | ||||
Total | $ | 56,445 |
June 30, 2022 | |||||
Cash and cash equivalents | $ | 5,732 | |||
Accounts and other receivables, net | 5,021 | ||||
Property, plant and equipment, net | 4,325 | ||||
Goodwill | 55,878 | ||||
Intangible assets | 34,214 | ||||
All other assets | 3,507 | ||||
Assets held for sale | $ | 108,677 | |||
Accounts payable and accrued liabilities | $ | 10,338 | |||
Deferred taxes on income | 5,971 | ||||
All other liabilities | 2,391 | ||||
Liabilities held for sale | $ | 18,700 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Customer relationships | $ | 151,953 | $ | (72,705) | $ | 79,248 | $ | 268,187 | $ | (141,492) | $ | 126,695 | |||||||||||||||||||||||
Software & technology | 21,894 | (18,372) | 3,522 | 21,981 | (16,234) | 5,747 | |||||||||||||||||||||||||||||
Total intangible assets | $ | 173,847 | $ | (91,077) | $ | 82,770 | $ | 290,168 | $ | (157,726) | $ | 132,442 |
Remainder 2022 | $ | 8,614 | |||
2023 | 15,327 | ||||
2024 | 15,327 | ||||
2025 | 15,123 | ||||
2026 | 14,134 | ||||
Thereafter | 14,245 | ||||
Total | $ | 82,770 |
December 31, 2021 | Disposition | Currency impact | June 30, 2022 | ||||||||||||||||||||
Global Ecommerce | $ | 395,062 | $ | (55,878) | $ | — | $ | 339,184 | |||||||||||||||
Presort Services | 220,992 | — | — | 220,992 | |||||||||||||||||||
SendTech Solutions | 519,049 | — | (18,773) | 500,276 | |||||||||||||||||||
Total goodwill | $ | 1,135,103 | $ | (55,878) | $ | (18,773) | $ | 1,060,452 |
June 30, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||
Money market funds | $ | 84,636 | $ | 164,238 | $ | — | $ | 248,874 | |||||||||||||||
Equity securities | — | 15,167 | — | 15,167 | |||||||||||||||||||
Commingled fixed income securities | 1,569 | 13,445 | — | 15,014 | |||||||||||||||||||
Government and related securities | 9,018 | 19,870 | — | 28,888 | |||||||||||||||||||
Corporate debt securities | — | 54,683 | — | 54,683 | |||||||||||||||||||
Mortgage-backed / asset-backed securities | — | 140,114 | — | 140,114 | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Interest rate swap | — | 12,030 | — | 12,030 | |||||||||||||||||||
Foreign exchange contracts | — | 675 | — | 675 | |||||||||||||||||||
Total assets | $ | 95,223 | $ | 420,222 | $ | — | $ | 515,445 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (2,505) | $ | — | $ | (2,505) | |||||||||||||||
Total liabilities | $ | — | $ | (2,505) | $ | — | $ | (2,505) |
December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||
Money market funds | $ | 88,705 | $ | 338,043 | $ | — | $ | 426,748 | |||||||||||||||
Equity securities | — | 29,356 | — | 29,356 | |||||||||||||||||||
Commingled fixed income securities | 1,692 | 16,815 | — | 18,507 | |||||||||||||||||||
Government and related securities | 9,790 | 25,439 | — | 35,229 | |||||||||||||||||||
Corporate debt securities | — | 65,167 | — | 65,167 | |||||||||||||||||||
Mortgage-backed / asset-backed securities | — | 172,018 | — | 172,018 | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Interest rate swap | — | 3,103 | — | 3,103 | |||||||||||||||||||
Foreign exchange contracts | — | 2,474 | — | 2,474 | |||||||||||||||||||
Total assets | $ | 100,187 | $ | 652,415 | $ | — | $ | 752,602 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (304) | $ | — | $ | (304) | |||||||||||||||
Total liabilities | $ | — | $ | (304) | $ | — | $ | (304) |
June 30, 2022 | |||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
Government and related securities | $ | 35,921 | $ | 30 | $ | (7,063) | $ | 28,888 | |||||||||||||||
Corporate debt securities | 67,129 | 1 | (12,447) | 54,683 | |||||||||||||||||||
Commingled fixed income securities | 1,735 | — | (166) | 1,569 | |||||||||||||||||||
Mortgage-backed / asset-backed securities | 163,527 | 2 | (23,415) | 140,114 | |||||||||||||||||||
Total | $ | 268,312 | $ | 33 | $ | (43,091) | $ | 225,254 |
December 31, 2021 | |||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
Government and related securities | $ | 36,160 | $ | 81 | $ | (1,012) | $ | 35,229 | |||||||||||||||
Corporate debt securities | 67,906 | 259 | (2,998) | 65,167 | |||||||||||||||||||
Commingled fixed income securities | 1,725 | — | (33) | 1,692 | |||||||||||||||||||
Mortgage-backed / asset-backed securities | 176,559 | 144 | (4,685) | 172,018 | |||||||||||||||||||
Total | $ | 282,350 | $ | 484 | $ | (8,728) | $ | 274,106 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Fair Value | Gross unrealized losses | Fair Value | Gross unrealized losses | ||||||||||||||||||||
Greater than 12 continuous months | |||||||||||||||||||||||
Government and related securities | $ | 22,325 | $ | 4,823 | $ | 16,018 | $ | 579 | |||||||||||||||
Corporate debt securities | 46,695 | 11,501 | 51,385 | 2,658 | |||||||||||||||||||
Commingled fixed income securities | 1,569 | 166 | — | — | |||||||||||||||||||
Mortgage-backed / asset-backed securities | 129,223 | 22,339 | 135,441 | 4,057 | |||||||||||||||||||
Total | $ | 199,812 | $ | 38,829 | $ | 202,844 | $ | 7,294 | |||||||||||||||
Less than 12 continuous months | |||||||||||||||||||||||
Government and related securities | $ | 6,098 | $ | 2,240 | $ | 15,438 | $ | 433 | |||||||||||||||
Corporate debt securities | 7,566 | 946 | 8,859 | 340 | |||||||||||||||||||
Commingled fixed income securities | — | — | 1,692 | 33 | |||||||||||||||||||
Mortgage-backed / asset-backed securities | 10,684 | 1,076 | 30,754 | 628 | |||||||||||||||||||
Total | $ | 24,348 | $ | 4,262 | $ | 56,743 | $ | 1,434 |
Amortized cost | Estimated fair value | ||||||||||
Within 1 year | $ | 2,449 | $ | 2,281 | |||||||
After 1 year through 5 years | 14,501 | 13,366 | |||||||||
After 5 years through 10 years | 74,801 | 62,502 | |||||||||
After 10 years | 176,561 | 147,105 | |||||||||
Total | $ | 268,312 | $ | 225,254 |
Designation of Derivatives | Balance Sheet Location | June 30, 2022 | December 31, 2021 | |||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
Foreign exchange contracts | Other current assets and prepayments | $ | 80 | $ | 21 | |||||||||||||||
Accounts payable and accrued liabilities | (9) | (10) | ||||||||||||||||||
Interest rate swaps | Other assets | 12,030 | 3,103 | |||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Foreign exchange contracts | Other current assets and prepayments | 595 | 2,453 | |||||||||||||||||
Accounts payable and accrued liabilities | (2,496) | (294) | ||||||||||||||||||
Total derivative assets | $ | 12,705 | $ | 5,577 | ||||||||||||||||
Total derivative liabilities | (2,505) | (304) | ||||||||||||||||||
Total net derivative asset | $ | 10,200 | $ | 5,273 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
Derivative Gain (Loss) Recognized in AOCL (Effective Portion) | Location of Gain (Loss) (Effective Portion) | Gain (Loss) Reclassified from AOCL to Earnings (Effective Portion) | ||||||||||||||||||||||||||||||
Derivative Instrument | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 100 | $ | (54) | Revenue | $ | — | $ | 118 | |||||||||||||||||||||||
Cost of sales | 49 | (47) | ||||||||||||||||||||||||||||||
Interest rate swap | 1,717 | (3,672) | Interest expense | 138 | — | |||||||||||||||||||||||||||
$ | 1,817 | $ | (3,726) | $ | 187 | $ | 71 | |||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
Derivative Gain (Loss) Recognized in AOCL (Effective Portion) | Location of Gain (Loss) (Effective Portion) | Gain (Loss) Reclassified from AOCL to Earnings (Effective Portion) | ||||||||||||||||||||||||||||||
Derivative Instrument | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 123 | $ | 174 | Revenue | $ | — | $ | 244 | |||||||||||||||||||||||
Cost of sales | 63 | (105) | ||||||||||||||||||||||||||||||
Interest rate swap | 8,927 | 2,608 | Interest expense | 275 | — | |||||||||||||||||||||||||||
$ | 9,050 | $ | 2,782 | $ | 338 | $ | 139 |
Three Months Ended June 30, | ||||||||||||||||||||
Derivative Gain (Loss) Recognized in Earnings | ||||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2022 | 2021 | |||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (17,769) | $ | 514 | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
Derivative Gain (Loss) Recognized in Earnings | ||||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2022 | 2021 | |||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (21,183) | $ | 1,067 |
June 30, 2022 | December 31, 2021 | ||||||||||
Carrying value | $ | 2,219,519 | $ | 2,323,838 | |||||||
Fair value | $ | 1,932,664 | $ | 2,355,894 |
Severance and other exit costs | |||||
Balance at January 1, 2022 | $ | 5,747 | |||
Amounts charged to expense | 8,408 | ||||
Cash payments | (8,255) | ||||
Noncash activity | (275) | ||||
Balance at June 30, 2022 | $ | 5,625 | |||
Balance at January 1, 2021 | $ | 10,063 | |||
Amounts charged to expense | 7,733 | ||||
Cash payments | (8,825) | ||||
Noncash activity | (541) | ||||
Balance at June 30, 2021 | $ | 8,430 |
Interest rate | June 30, 2022 | December 31, 2021 | |||||||||||||||
Notes due April 2023 | 6.20% | — | 90,259 | ||||||||||||||
Notes due March 2024 | 4.625% | 238,449 | 242,603 | ||||||||||||||
Term loan due March 2026 | LIBOR + 1.75% | 361,000 | 370,500 | ||||||||||||||
Notes due March 2027 | 6.875% | 400,000 | 400,000 | ||||||||||||||
Term loan due March 2028 | LIBOR + 4.0% | 444,375 | 446,625 | ||||||||||||||
Notes due March 2029 | 7.25% | 350,000 | 350,000 | ||||||||||||||
Notes due January 2037 | 5.25% | 35,841 | 35,841 | ||||||||||||||
Notes due March 2043 | 6.70% | 425,000 | 425,000 | ||||||||||||||
Other debt | 3,068 | 3,685 | |||||||||||||||
Principal amount | 2,257,733 | 2,364,513 | |||||||||||||||
Less: unamortized costs, net | 38,214 | 40,675 | |||||||||||||||
Total debt | 2,219,519 | 2,323,838 | |||||||||||||||
Less: current portion long-term debt | 24,752 | 24,739 | |||||||||||||||
Long-term debt | $ | 2,194,767 | $ | 2,299,099 |
Defined Benefit Pension Plans | Nonpension Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Service cost | $ | 24 | $ | 105 | $ | 332 | $ | 314 | $ | 179 | $ | 226 | |||||||||||||||||||||||
Interest cost | 11,141 | 10,744 | 3,450 | 3,007 | 939 | 964 | |||||||||||||||||||||||||||||
Expected return on plan assets | (17,862) | (19,478) | (6,809) | (8,107) | — | — | |||||||||||||||||||||||||||||
Amortization of prior service (credit) cost | (11) | (15) | 64 | 68 | — | 33 | |||||||||||||||||||||||||||||
Amortization of net actuarial loss | 8,232 | 9,639 | 1,726 | 2,380 | 88 | 1,077 | |||||||||||||||||||||||||||||
Settlement | — | 314 | — | — | — | — | |||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | 1,524 | $ | 1,309 | $ | (1,237) | $ | (2,338) | $ | 1,206 | $ | 2,300 | |||||||||||||||||||||||
Contributions to benefit plans | $ | 1,148 | $ | 1,845 | $ | 392 | $ | 328 | $ | 3,490 | $ | 3,380 | |||||||||||||||||||||||
Defined Benefit Pension Plans | Nonpension Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Service cost | $ | 48 | $ | 131 | $ | 687 | $ | 709 | $ | 358 | $ | 450 | |||||||||||||||||||||||
Interest cost | 22,282 | 21,489 | 7,084 | 5,968 | 1,879 | 1,925 | |||||||||||||||||||||||||||||
Expected return on plan assets | (35,725) | (38,956) | (14,014) | (16,091) | — | — | |||||||||||||||||||||||||||||
Amortization of prior service (credit) cost | (22) | (30) | 132 | 135 | — | 65 | |||||||||||||||||||||||||||||
Amortization of net actuarial loss | 16,464 | 19,277 | 3,547 | 4,725 | 175 | 2,155 | |||||||||||||||||||||||||||||
Settlement | — | 314 | — | — | — | — | |||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | 3,047 | $ | 2,225 | $ | (2,564) | $ | (4,554) | $ | 2,412 | $ | 4,595 | |||||||||||||||||||||||
Contributions to benefit plans | $ | 2,298 | $ | 2,860 | $ | 8,613 | $ | 9,024 | $ | 7,648 | $ | 6,900 |
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | ||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | 323,338 | $ | — | $ | 5,141,636 | $ | (800,330) | $ | (4,571,762) | $ | 92,882 | |||||||||||||||||||||||
Net income | — | — | 4,336 | — | — | 4,336 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (49,723) | — | (49,723) | |||||||||||||||||||||||||||||
Dividends paid ($0.05 per common share) | — | — | (8,625) | — | — | (8,625) | |||||||||||||||||||||||||||||
Issuance of common stock | — | (5,371) | (99) | — | 5,383 | (87) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 5,371 | — | — | — | 5,371 | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 323,338 | $ | — | $ | 5,137,248 | $ | (850,053) | $ | (4,566,379) | $ | 44,154 |
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | ||||||||||||||||||||||||||||||
Balance at April 1, 2021 | $ | 323,338 | $ | 15,269 | $ | 5,161,029 | $ | (847,538) | $ | (4,632,935) | $ | 19,163 | |||||||||||||||||||||||
Net income | — | — | 19,856 | — | — | 19,856 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 16,235 | — | 16,235 | |||||||||||||||||||||||||||||
Dividends paid ($0.05 per common share) | — | — | (8,700) | — | — | (8,700) | |||||||||||||||||||||||||||||
Issuance of common stock | — | (16,423) | — | — | 16,182 | (241) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 7,057 | — | — | — | 7,057 | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 323,338 | $ | 5,903 | $ | 5,172,185 | $ | (831,303) | $ | (4,616,753) | $ | 53,370 |
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 323,338 | $ | 2,485 | $ | 5,169,270 | $ | (780,312) | $ | (4,602,149) | $ | 112,632 | |||||||||||||||||||||||
Net income | — | — | 25,157 | — | — | 25,157 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (69,741) | — | (69,741) | |||||||||||||||||||||||||||||
Dividends paid ($0.10 per common share) | — | — | (17,313) | — | — | (17,313) | |||||||||||||||||||||||||||||
Issuance of common stock | — | (12,351) | (39,866) | — | 49,216 | (3,001) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 9,866 | — | — | — | 9,866 | |||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (13,446) | (13,446) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 323,338 | $ | — | $ | 5,137,248 | $ | (850,053) | $ | (4,566,379) | $ | 44,154 |
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 323,338 | $ | 68,502 | $ | 5,201,195 | $ | (839,131) | $ | (4,687,509) | $ | 66,395 | |||||||||||||||||||||||
Net loss | — | — | (11,685) | — | — | (11,685) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 7,828 | — | 7,828 | |||||||||||||||||||||||||||||
Dividends paid ($0.10 per common share) | — | — | (17,325) | — | — | (17,325) | |||||||||||||||||||||||||||||
Issuance of common stock | — | (74,877) | — | — | 70,756 | (4,121) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 12,278 | — | — | — | 12,278 | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 323,338 | $ | 5,903 | $ | 5,172,185 | $ | (831,303) | $ | (4,616,753) | $ | 53,370 |
Gain (Loss) Reclassified from AOCL | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Revenue | $ | — | $ | 118 | $ | — | $ | 244 | |||||||||||||||
Cost of sales | 49 | (47) | 63 | (105) | |||||||||||||||||||
Interest expense, net | 138 | (96) | 275 | (96) | |||||||||||||||||||
Total before tax | 187 | (25) | 338 | 43 | |||||||||||||||||||
Income tax provision | 47 | (6) | 83 | 11 | |||||||||||||||||||
Net of tax | $ | 140 | $ | (19) | $ | 255 | $ | 32 | |||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Financing revenue | $ | (4) | $ | 1 | $ | (6) | $ | — | |||||||||||||||
Selling, general and administrative expense | 35 | 217 | 22 | 259 | |||||||||||||||||||
Total before tax | 31 | 218 | 16 | 259 | |||||||||||||||||||
Income tax provision | 8 | 55 | 5 | 65 | |||||||||||||||||||
Net of tax | $ | 23 | $ | 163 | $ | 11 | $ | 194 | |||||||||||||||
Pension and postretirement benefit plans | |||||||||||||||||||||||
Prior service costs | (53) | (86) | $ | (110) | $ | (170) | |||||||||||||||||
Actuarial losses | (10,046) | (13,096) | (20,186) | (26,157) | |||||||||||||||||||
Settlement | — | (314) | — | (314) | |||||||||||||||||||
Total before tax | (10,099) | (13,496) | (20,296) | (26,641) | |||||||||||||||||||
Income tax benefit | (1,870) | (3,303) | (4,331) | (6,511) | |||||||||||||||||||
Net of tax | $ | (8,229) | $ | (10,193) | $ | (15,965) | $ | (20,130) |
Cash flow hedges | Available for sale securities | Pension and postretirement benefit plans | Foreign currency adjustments | Total | |||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 3,803 | $ | (6,249) | $ | (756,639) | $ | (21,227) | $ | (780,312) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 6,817 | (26,554) | — | (65,703) | (85,440) | ||||||||||||||||||||||||
Reclassifications into earnings | (255) | (11) | 15,965 | — | 15,699 | ||||||||||||||||||||||||
Net other comprehensive income (loss) | 6,562 | (26,565) | 15,965 | (65,703) | (69,741) | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 10,365 | $ | (32,814) | $ | (740,674) | $ | (86,930) | $ | (850,053) |
Cash flow hedges | Available for sale securities | Pension and postretirement benefit plans | Foreign currency adjustments | Total | |||||||||||||||||||||||||
Balance at January 1, 2021 | $ | (1,411) | $ | 402 | $ | (851,063) | $ | 12,941 | $ | (839,131) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 3,456 | (4,783) | — | (10,749) | (12,076) | ||||||||||||||||||||||||
Reclassifications into earnings | (32) | (194) | 20,130 | — | 19,904 | ||||||||||||||||||||||||
Net other comprehensive income (loss) | 3,424 | (4,977) | 20,130 | (10,749) | 7,828 | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 2,013 | $ | (4,575) | $ | (830,933) | $ | 2,192 | $ | (831,303) |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Balance at beginning of year | $ | 29,179 | $ | 35,344 | |||||||
Amounts charged to expense | 5,280 | 2,488 | |||||||||
Write-offs, recoveries and other | (21,763) | (7,085) | |||||||||
Balance at end of period | $ | 12,696 | $ | 30,747 | |||||||
Accounts and other receivables | $ | 12,176 | $ | 13,959 | |||||||
Other assets | 520 | 16,788 | |||||||||
Total | $ | 12,696 | $ | 30,747 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2021 | 2022 | 2021 | |||||||||||||||
Loss on debt redemption/refinancing | $ | 989 | $ | 4,993 | $ | 52,383 | |||||||||||
Insurance proceeds | (3,000) | — | (3,000) | ||||||||||||||
Gain on sale of business | (10,201) | (2,522) | (10,201) | ||||||||||||||
Gain on sale of assets | (1,434) | (14,372) | (1,434) | ||||||||||||||
Other (income) expense | $ | (13,646) | $ | (11,901) | $ | 37,748 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash interest paid | $ | 64,511 | $ | 58,501 | |||||||
Cash income tax payments, net of refunds | $ | 11,164 | $ | 2,180 | |||||||
Noncash activity | |||||||||||
Capital assets obtained under capital lease obligations | $ | 14,017 | $ | 19,568 | |||||||
Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % Change | 2022 | 2021 | Actual % change | Constant Currency % change | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 551,478 | $ | 567,022 | (3) | % | (2) | % | $ | 1,148,862 | $ | 1,137,476 | 1 | % | 1 | % | |||||||||||||||||||||||||||||||
Support services | 107,625 | 115,156 | (7) | % | (5) | % | 217,977 | 233,853 | (7) | % | (5) | % | |||||||||||||||||||||||||||||||||||
Financing | 67,298 | 73,453 | (8) | % | (7) | % | 139,327 | 151,265 | (8) | % | (7) | % | |||||||||||||||||||||||||||||||||||
Equipment sales | 89,986 | 86,267 | 4 | % | 7 | % | 179,282 | 173,070 | 4 | % | 6 | % | |||||||||||||||||||||||||||||||||||
Supplies | 38,245 | 38,655 | (1) | % | 2 | % | 79,306 | 80,879 | (2) | % | — | % | |||||||||||||||||||||||||||||||||||
Rentals | 16,863 | 18,650 | (10) | % | (8) | % | 33,683 | 37,857 | (11) | % | (10) | % | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 871,495 | $ | 899,203 | (3) | % | (2) | % | $ | 1,798,437 | $ | 1,814,400 | (1) | % | — | % |
Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant currency % change | 2022 | 2021 | Actual % change | Constant currency % change | ||||||||||||||||||||||||||||||||||||||||
Global Ecommerce | $ | 393,770 | $ | 418,429 | (6) | % | (5) | % | $ | 812,297 | $ | 831,515 | (2) | % | (2) | % | |||||||||||||||||||||||||||||||
Presort Services | 138,934 | 134,619 | 3 | % | 3 | % | 299,478 | 277,745 | 8 | % | 8 | % | |||||||||||||||||||||||||||||||||||
SendTech Solutions | 338,791 | 346,155 | (2) | % | — | % | 686,662 | 705,140 | (3) | % | (1) | % | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 871,495 | $ | 899,203 | (3) | % | (2) | % | $ | 1,798,437 | $ | 1,814,400 | (1) | % | — | % |
Segment EBIT | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % change | 2022 | 2021 | % change | ||||||||||||||||||||||||||||||
Global Ecommerce | $ | (28,825) | $ | (10,831) | >(100%) | $ | (42,521) | $ | (37,207) | (14) | % | ||||||||||||||||||||||||
Presort Services | 12,851 | 16,134 | (20) | % | 32,483 | 35,185 | (8) | % | |||||||||||||||||||||||||||
SendTech Solutions | 95,565 | 107,121 | (11) | % | 200,140 | 221,591 | (10) | % | |||||||||||||||||||||||||||
Total Segment EBIT | $ | 79,591 | $ | 112,424 | (29) | % | $ | 190,102 | $ | 219,569 | (13) | % |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 393,770 | $ | 418,429 | (6) | % | (5) | % | $ | 356,025 | $ | 373,347 | 9.6 | % | 10.8 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | (28,825) | $ | (10,831) | >(100%) |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 812,297 | $ | 831,515 | (2) | % | (2) | % | $ | 724,493 | $ | 757,655 | 10.8 | % | 8.9 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | (42,521) | $ | (37,207) | (14) | % |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 138,934 | $ | 134,619 | 3 | % | 3 | % | $ | 111,305 | $ | 103,175 | 19.9 | % | 23.4 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | 12,851 | $ | 16,134 | (20) | % |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 299,478 | $ | 277,745 | 8 | % | 8 | % | $ | 235,956 | $ | 212,174 | 21.2 | % | 23.6 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | 32,483 | $ | 35,185 | (8) | % |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 18,774 | $ | 13,974 | 34 | % | 35 | % | $ | 9,858 | $ | 6,247 | 47.5 | % | 55.3 | % | |||||||||||||||||||||||||||||||
Support services | 107,625 | 115,156 | (7) | % | (5) | % | 37,365 | 37,095 | 65.3 | % | 67.8 | % | |||||||||||||||||||||||||||||||||||
Financing | 67,298 | 73,453 | (8) | % | (7) | % | 12,533 | 11,773 | 81.4 | % | 84.0 | % | |||||||||||||||||||||||||||||||||||
Equipment sales | 89,986 | 86,267 | 4 | % | 7 | % | 63,232 | 61,503 | 29.7 | % | 28.7 | % | |||||||||||||||||||||||||||||||||||
Supplies | 38,245 | 38,655 | (1) | % | 2 | % | 10,957 | 10,467 | 71.4 | % | 72.9 | % | |||||||||||||||||||||||||||||||||||
Rentals | 16,863 | 18,650 | (10) | % | (8) | % | 7,401 | 6,013 | 56.1 | % | 67.8 | % | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 338,791 | $ | 346,155 | (2) | % | — | % | $ | 141,346 | $ | 133,098 | 58.3 | % | 61.5 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | 95,565 | $ | 107,121 | (11) | % |
Revenue | Cost of Revenue | Gross Margin | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | Constant Currency % change | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Business services | $ | 37,087 | $ | 28,216 | 31 | % | 32 | % | $ | 19,740 | $ | 12,315 | 46.8 | % | 56.4 | % | |||||||||||||||||||||||||||||||
Support services | 217,977 | 233,853 | (7) | % | (5) | % | 74,300 | 73,323 | 65.9 | % | 68.6 | % | |||||||||||||||||||||||||||||||||||
Financing | 139,327 | 151,265 | (8) | % | (7) | % | 24,135 | 23,659 | 82.7 | % | 84.4 | % | |||||||||||||||||||||||||||||||||||
Equipment sales | 179,282 | 173,070 | 4 | % | 6 | % | 126,673 | 123,293 | 29.3 | % | 28.8 | % | |||||||||||||||||||||||||||||||||||
Supplies | 79,306 | 80,879 | (2) | % | — | % | 22,431 | 21,678 | 71.7 | % | 73.2 | % | |||||||||||||||||||||||||||||||||||
Rentals | 33,683 | 37,857 | (11) | % | (10) | % | 12,668 | 12,460 | 62.4 | % | 67.1 | % | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 686,662 | $ | 705,140 | (3) | % | (1) | % | $ | 279,947 | $ | 266,728 | 59.2 | % | 62.2 | % | |||||||||||||||||||||||||||||||
Segment EBIT | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | |||||||||||||||||||||||||||||||||||||||||||||
Segment EBIT | $ | 200,140 | $ | 221,591 | (10) | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Actual % change | 2022 | 2021 | Actual % change | ||||||||||||||||||||||||||||||
Unallocated corporate expenses | $ | 40,761 | $ | 56,316 | (28) | % | $ | 98,595 | $ | 113,781 | (13) | % |
2022 | 2021 | Change | |||||||||||||||
Net cash from operating activities | $ | 45,694 | $ | 144,729 | $ | (99,035) | |||||||||||
Net cash from investing activities | (27,518) | (68,034) | 40,516 | ||||||||||||||
Net cash from financing activities | (166,504) | (199,024) | 32,520 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (13,455) | 349 | (13,804) | ||||||||||||||
Change in cash and cash equivalents | $ | (161,783) | $ | (121,980) | $ | (39,803) |
Exhibit Number | Description | Exhibit Number in this Form 10-Q | |||||||||
2.1 | 2.1 | ||||||||||
3(i)(a) | 3(i)(a) | ||||||||||
3 | 3 | ||||||||||
10.1 | 10.1 | ||||||||||
31.1 | 31.1 | ||||||||||
31.2 | 31.2 | ||||||||||
32.1 | 32.1 | ||||||||||
32.2 | 32.2 | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | ||||||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | ||||||||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document | ||||||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | ||||||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL. (included as Exhibit 101). |
PITNEY BOWES INC. | ||||||||
Date: | August 2, 2022 | |||||||
/s/ Ana Maria Chadwick | ||||||||
Ana Maria Chadwick | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Duly Authorized Officer and Principal Financial Officer) | ||||||||
/s/ Joseph R. Catapano | ||||||||
Joseph R. Catapano | ||||||||
Vice President and Chief Accounting Officer | ||||||||
(Duly Authorized Officer and Principal Accounting Officer) |
JPMORGAN CHASE BANK, N.A., as Administrative Agent | |||||
by | |||||
Name: | |||||
Title: | |||||
/s/ Marc B. Lautenbach | ||||||||||||||
Marc B. Lautenbach | ||||||||||||||
President and Chief Executive Officer |
/s/ Ana Maria Chadwick | |||||||||||
Ana Maria Chadwick | |||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
/s/ Marc B. Lautenbach | |||||||||||
Marc B. Lautenbach | |||||||||||
President and Chief Executive Officer |
/s/ Ana Maria Chadwick | |||||||||||
Ana Maria Chadwick | |||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |