Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 22, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'PITNEY BOWES INC /DE/ | ' |
Entity Central Index Key | '0000078814 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well Known Seasoned Issuer | 'Yes | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Common Stock Shares Outstanding | ' | 201,992,623 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Document Fiscal Year Focus | ' | ' | '2013 | ' |
Revenue: | ' | ' | ' | ' |
Equipment sales | $201,830 | $199,609 | $634,779 | $618,620 |
Supplies | 69,696 | 66,878 | 216,254 | 213,665 |
Software | 98,164 | 93,476 | 285,658 | 302,377 |
Rentals | 128,225 | 137,149 | 391,590 | 414,922 |
Financing | 113,955 | 123,999 | 346,646 | 373,695 |
Support services | 166,785 | 176,769 | 505,226 | 529,615 |
Business services | 160,131 | 151,909 | 458,061 | 446,654 |
Total revenue | 938,786 | 949,789 | 2,838,214 | 2,899,548 |
Costs and expenses: | ' | ' | ' | ' |
Cost of equipment sales | 92,307 | 95,008 | 307,992 | 278,457 |
Cost of supplies | 21,840 | 20,689 | 67,794 | 65,423 |
Cost of software | 29,698 | 29,227 | 80,093 | 85,023 |
Cost of rentals | 25,612 | 25,182 | 79,791 | 87,258 |
Financing interest expense | 20,306 | 19,604 | 59,979 | 61,385 |
Cost of support services | 103,004 | 107,074 | 315,275 | 334,274 |
Cost of business services | 112,447 | 103,230 | 322,970 | 298,689 |
Selling, general and administrative | 355,202 | 370,935 | 1,067,394 | 1,111,144 |
Research and development | 24,769 | 30,226 | 81,351 | 87,810 |
Restructuring charges and asset impairments | 34,909 | 0 | 53,940 | -980 |
Other interest expense | 27,508 | 27,541 | 89,594 | 87,261 |
Interest income | -1,457 | -2,057 | -4,507 | -5,793 |
Other income, net | 0 | 0 | 25,121 | 1,138 |
Total costs and expenses | 846,145 | 826,659 | 2,546,787 | 2,491,089 |
Income from continuing operations before income taxes | 92,641 | 123,130 | 291,427 | 408,459 |
Provision for income taxes | 11,370 | 30,590 | 55,530 | 85,108 |
Income from continuing operations | 81,271 | 92,540 | 235,897 | 323,351 |
Net (loss) income before attribution of noncontrolling interests | -933 | 81,127 | 66,528 | 348,608 |
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests | 4,594 | 4,594 | 13,782 | 13,782 |
Net (loss) income - Pitney Bowes Inc. | -5,527 | 76,533 | 52,746 | 334,826 |
Amounts attributable to common stockholders: | ' | ' | ' | ' |
Net income from continuing operations | 76,677 | 87,946 | 222,115 | 309,569 |
(Loss) income from discontinued operations, net of tax | -82,204 | -11,413 | -169,369 | 25,257 |
Net (loss) income - Pitney Bowes Inc. | ($5,527) | $76,533 | $52,746 | $334,826 |
Basic earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.38 | $0.44 | $1.10 | $1.55 |
Discontinued operations | ($0.41) | ($0.06) | ($0.84) | $0.13 |
Net (loss) income - Pitney Bowes Inc. | ($0.03) | $0.38 | $0.26 | $1.67 |
Diluted earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.38 | $0.44 | $1.10 | $1.54 |
Discontinued operations | ($0.40) | ($0.06) | ($0.84) | $0.13 |
Net (loss) income - Pitney Bowes Inc. | ($0.03) | $0.38 | $0.26 | $1.66 |
Dividends declared per share of common stock | $0.19 | $0.38 | $0.75 | $1.13 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net (loss) income - Pitney Bowes Inc. | ($5,527) | $76,533 | $52,746 | $334,826 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Net unrealized gain on cash flow hedges, net of tax | 62 | 25 | 962 | 578 |
Net unrealized (loss) gain on investment securities, net of tax | -222 | 589 | -4,667 | 967 |
Amortization of pension and postretirement costs, net of tax | 7,950 | 12,151 | 28,943 | 35,115 |
Foreign currency translations | 19,140 | 19,025 | -40,618 | -883 |
Other comprehensive (loss) income | 26,930 | 31,790 | -15,380 | 35,777 |
Total comprehensive (loss) income - Pitney Bowes Inc. | $21,403 | $108,323 | $37,366 | $370,603 |
Document Fiscal Year Focus | ' | ' | '2013 | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net unrealized gain (loss) on cash flow hedges, tax | $41 | $21 | $615 | $374 | ||||
Net unrealized loss on investment securities, tax | -142 | 377 | -2,984 | 618 | ||||
Amortization of pension and postretirement costs, tax | $4,347 | [1],[2] | $6,404 | [1],[2] | $15,613 | [1],[2] | $20,371 | [1],[2] |
[1] | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details). | |||||||
[2] | Amounts in parentheses indicate debits (reductions) to income. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $759,636 | $913,276 |
Short-term investments | 20,471 | 36,611 |
Accounts receivables, net | 418,035 | 728,250 |
Finance receivable, net | 1,120,068 | 1,188,292 |
Inventories | 134,266 | 179,678 |
Current income taxes | 28,419 | 51,836 |
Other current assets and prepayments | 173,068 | 114,184 |
Assets held for sale | 550,641 | 0 |
Total current assets | 3,204,604 | 3,212,127 |
Property, plant and equipment, net | 240,609 | 385,377 |
Rental property and equipment, net | 230,098 | 241,192 |
Finance receivables, net | 947,028 | 1,026,489 |
Investment in leveraged leases | 34,858 | 34,546 |
Goodwill | 1,729,178 | 2,136,138 |
Intangible assets, net | 128,588 | 166,214 |
Non-current income taxes | 96,714 | 94,434 |
Other assets | 538,255 | 563,374 |
Total assets | 7,149,932 | 7,859,891 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 1,501,189 | 1,809,226 |
Current income taxes | 291,930 | 240,681 |
Notes payable and current portion of long-term obligations | 299,570 | 375,000 |
Advance billings | 418,231 | 452,130 |
Liabilities related to assets held for sale | 118,177 | 0 |
Total current liabilities | 2,629,097 | 2,877,037 |
Deferred taxes on income | 19,192 | 69,222 |
Tax uncertainties and other income tax liabilities | 157,102 | 145,881 |
Long-term debt | 3,351,020 | 3,642,375 |
Other non-current liabilities | 685,914 | 718,375 |
Total liabilities | 6,842,325 | 7,452,890 |
Noncontrolling interests (Preferred stockholders' equity in subsidiaries) | 296,370 | 296,370 |
Stockholders' equity: | ' | ' |
Cumulative preferred stock, $50 par value, 4% convertible | 4 | 4 |
Cumulative preference stock, no par value, $2.12 convertible | 608 | 648 |
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 201,643 | 223,847 |
Retained earnings | 4,646,593 | 4,744,802 |
Accumulated other comprehensive loss | -696,593 | -681,213 |
Treasury stock, at cost (121,462,568 and 122,453,865 shares, respectively) | -4,464,356 | -4,500,795 |
Total Pitney Bowes Inc. stockholders' equity | 11,237 | 110,631 |
Total liabilities, noncontrolling interests and stockholders' equity | $7,149,932 | $7,859,891 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable | $15,230 | $20,219 |
Allowance for Notes, Loans and Financing Receivable, Current | 25,007 | 25,484 |
Allowance for Notes, Loans and Financing Receivable, Noncurrent | $11,489 | $14,610 |
Preferred stock par value | $50 | $50 |
Preferred stock dividend rate, per-dollar dividend | 4.00% | 4.00% |
Preference Stock No Par Value | 'Â Â | 'Â Â |
Preference stock dividend rate, in dollars per share | $2.12 | $2.12 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 323,337,912 | 323,337,912 |
Treasury stock, shares | 121,462,568,000 | 122,453,865,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Cash Flows [Abstract] | ' | ' |
Document Fiscal Year Focus | '2013 | ' |
Debt Instrument, Unamortized Discount | $13,387 | ' |
Cash flows from operating activities: | ' | ' |
Net income before attribution of noncontrolling interests | 66,528 | 348,608 |
Restructuring payments | -41,353 | -60,746 |
Special pension plan contributions | 0 | -95,000 |
Tax payments related to sale of leveraged lease assets | 0 | 99,249 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Goodwill impairment | 101,415 | 18,315 |
Estimated loss on disposal of business | 35,315 | 0 |
Gain on sale of leveraged lease assets, net of tax | 0 | -12,886 |
Proceeds from settlement of derivative instruments | 4,838 | 0 |
Depreciation and amortization | 167,377 | 191,507 |
Stock-based compensation | 12,061 | 13,505 |
Restructuring charges and asset impairments | 55,771 | 11,060 |
Changes in operating assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivables | 111,549 | 58,135 |
(Increase) decrease in finance receivables | 128,812 | 144,442 |
(Increase) decrease in inventories | 36,967 | -7,620 |
(Increase) decrease in other current assets and prepayments | -13,588 | -20,426 |
Increase (decrease) in accounts payable and accrued liabilities | -192,373 | -157,156 |
Increase (decrease) in current and non-current income taxes | 11,861 | 38,761 |
Increase (decrease) in advance billings | -23,179 | -1,551 |
Increase (decrease) in other operating capital, net | 31,559 | 34,929 |
Net cash provided by operating activities | 493,560 | 404,628 |
Cash flows from investing activities: | ' | ' |
Short-term and other investments | 2,162 | -23,250 |
Capital expenditures | -103,392 | -127,816 |
Proceeds from sale of leveraged lease assets | 0 | 105,506 |
Net investment in external financing | -1,609 | -134 |
Proceeds from Divestiture of Businesses | 2,627 | 0 |
Reserve account deposits | -16,962 | -15,373 |
Net cash (used in) provided by investing activities | -117,174 | -61,067 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of long-term obligations, net of fees and discounts of $13,387 | 411,613 | 0 |
Principal payments of long-term obligations | 779,637 | 550,000 |
Proceeds from the issuance of common stock under employee stock-based compensation plans | -6,499 | -6,989 |
Dividends paid to stockholders | -150,955 | -225,282 |
Dividends paid to noncontrolling interests | 9,188 | 9,188 |
Net cash used in financing activities | -521,668 | -777,481 |
Effect of exchange rate changes on cash and cash equivalents | -8,358 | 2,471 |
Decrease in cash and cash equivalents | -153,640 | -431,449 |
Cash and cash equivalents at beginning of period | 913,276 | 856,238 |
Cash and cash equivalents at end of period | 759,636 | 424,789 |
Cash interest paid | 162,938 | 170,119 |
Cash income tax payments, net of refund | $110,396 | $145,090 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business and Basis of Presentation | ' |
Description of Business and Basis of Presentation | |
Pitney Bowes Inc. and its subsidiaries (we, us, our or the company) is a global provider of technology solutions for small, mid-sized and large firms that help them connect to customers to build loyalty and grow revenue. We deliver our solutions on open platforms to best organize, analyze and apply public and proprietary data to two-way customer communications. We offer solutions for direct mail, transactional mail and call center communications, along with digital channel messaging for the Web, email and mobile applications. We conduct our business activities in five reporting segments. See Note 2 for information regarding our reportable segments. | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2012 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In management's opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary to state fairly our financial position, results of operations and cash flows for the periods presented have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2013. | |
During the third quarter of 2013, we entered into an agreement to sell the North America Management Services operations (PBMS NA) and our Nordic furniture business. In the second quarter of 2013, we entered into two separate agreements to sell the International Management Services business (PBMSi) and completed the sale of our International Mailing Services (IMS) operations related to the international delivery of mail and catalogs. PBMS (collectively PBMS NA and PBMSi), the Nordic furniture business and IMS are presented as discontinued operations in the Condensed Consolidated Statements of Income (Loss). The cash flows from discontinued operations for the nine months ended September 30, 2013 and 2012 are not separately stated and classified in the accompanying Condensed Consolidated Statements of Cash Flows. See Note 4 for additional information. | |
These statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2012 (the 2012 Annual Report). | |
Changes in Segment Presentation | |
As a result of certain organizational changes designed to realign our business units to reflect the clients served and how we review, analyze, measure and manage our operations, we have revised our business segment reporting (see Note 2). We have recast historical segment results to conform to our current segment presentation and to exclude discontinued operations. | |
  | |
Revision of Prior Period Amounts | |
During the third quarter of 2013, we determined that certain revenue previously reported as rentals revenue included a service component and should have been classified as support services revenue, and that certain research and development costs should have been classified as cost of software. Accordingly, the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2012 have been revised to reflect the correct classification, resulting in a decrease in rentals revenue and corresponding increase in support services revenue of $5 million and $13 million, respectively, and a decrease in research and development expenses and a corresponding increase in cost of software of $6 million and $17 million, respectively. These revisions did not impact previously reported total revenue, total costs and expenses, net income or earnings per share amounts. | |
We determined that the effect of these revisions was not material to any of our previously issued financial statements and will revise our previously issued financial statements to reflect these reclassification adjustments in future filings. | |
New Accounting Pronouncements | |
In January 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01). ASU 2013-01 requires an entity to disclose gross and net information about transactions that are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement, regardless of whether the transactions are actually offset in the statement of financial position. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The amounts impacting our disclosure were immaterial at September 30, 2013 and December 31, 2012. | |
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). ASU 2013-02 requires an entity to present either parenthetically on the face of the financial statements, or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The new standard is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of this standard resulted in additional disclosures, but did not impact our financial condition, results of operations or cash flows. | |
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 provides explicit guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryfoward exists. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect the application of this new guidance will have a material impact on our financial position. | |
Statement of Cash Flows | |
During the fourth quarter of 2012, we determined that changes in certain investment-related working capital accounts that were classified as cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows should have been classified as cash flows from investing activities. Accordingly, the Condensed Consolidated Statement of Cash Flows for the period ended September 30, 2012 has been revised to reflect the correct classification of cash flows, resulting in a decrease in cash provided by operating activities and a corresponding increase in cash provided by investing activities of $35 million. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
During the third quarter of 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect the clients served and how we review, analyze, measure and manage our operations. There were no changes to the Small & Medium Business Solutions group, but certain business activities within our Enterprise Business Solutions group were consolidated under a new reporting segment, Digital Commerce Solutions. Historical segment results have been recast to conform to our current presentation and to exclude discontinued operations (see Note 4). The principal products and services of each of our reporting segments are as follows: | ||||||||||||||||
Small & Medium Business Solutions: | ||||||||||||||||
North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in the U.S. and Canada. | ||||||||||||||||
International Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in areas outside North America. | ||||||||||||||||
Enterprise Business Solutions: | ||||||||||||||||
Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed sorting and production print equipment and production mail systems to large enterprise clients to process inbound and outbound mail. | ||||||||||||||||
Presort Services: Includes worldwide revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts. | ||||||||||||||||
Digital Commerce Solutions: | ||||||||||||||||
Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software; (ii) direct marketing services for targeted clients; (iii) our digital mail delivery service offering (VollyTM); and (iv) our cross-border e-commerce solutions. | ||||||||||||||||
Segment earnings before interest and taxes (EBIT) is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and impairment charges, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management presents segment EBIT because it believes segment EBIT provides investors with an analysis of the company's operating performance and underlying trends of the businesses. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our condensed consolidated results of operations. | ||||||||||||||||
Revenue and EBIT by business segment was as follows: | ||||||||||||||||
Revenues | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
North America Mailing | $ | 422,821 | $ | 447,920 | $ | 1,286,085 | $ | 1,362,709 | ||||||||
International Mailing | 142,443 | 141,630 | 448,684 | 449,583 | ||||||||||||
Small & Medium Business Solutions | 565,264 | 589,550 | 1,734,769 | 1,812,292 | ||||||||||||
Production Mail | 116,477 | 114,889 | 360,352 | 337,582 | ||||||||||||
Presort Services | 105,093 | 105,909 | 322,954 | 322,401 | ||||||||||||
Enterprise Business Solutions | 221,570 | 220,798 | 683,306 | 659,983 | ||||||||||||
Digital Commerce Solutions | 151,952 | 139,441 | 420,139 | 427,273 | ||||||||||||
Total revenue | $ | 938,786 | $ | 949,789 | $ | 2,838,214 | $ | 2,899,548 | ||||||||
EBIT | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
North America Mailing | $ | 167,433 | $ | 168,934 | $ | 488,301 | $ | 514,975 | ||||||||
International Mailing | 15,456 | 11,206 | 52,967 | 51,670 | ||||||||||||
Small & Medium Business Solutions | 182,889 | 180,140 | 541,268 | 566,645 | ||||||||||||
Production Mail | 10,620 | 10,125 | 34,239 | 28,439 | ||||||||||||
Presort Services | 20,398 | 19,167 | 65,132 | 82,728 | ||||||||||||
Enterprise Business Solutions | 31,018 | 29,292 | 99,371 | 111,167 | ||||||||||||
Digital Commerce Solutions | 10,196 | 2,971 | 20,134 | 23,674 | ||||||||||||
Total EBIT | 224,103 | 212,403 | 660,773 | 701,486 | ||||||||||||
Reconciling items: | ||||||||||||||||
Interest, net (1) | (46,357 | ) | (45,088 | ) | (145,066 | ) | (142,853 | ) | ||||||||
Unallocated corporate and other expenses | (50,196 | ) | (44,185 | ) | (170,340 | ) | (151,154 | ) | ||||||||
Restructuring charges and asset impairments | (34,909 | ) | — | (53,940 | ) | 980 | ||||||||||
Income from continuing operations before income taxes | $ | 92,641 | $ | 123,130 | $ | 291,427 | $ | 408,459 | ||||||||
(1) Includes financing interest expense, other interest expense and interest income. | ||||||||||||||||
Finance_Assets
Finance Assets | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||
Finance Assets | ' | |||||||||||||||||||
Finance Assets | ||||||||||||||||||||
Finance Receivables | ||||||||||||||||||||
Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three to five years. Loan receivables arise primarily from financing services offered to our customers for postage and related supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances. | ||||||||||||||||||||
Finance receivables consisted of the following: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,466,556 | $ | 446,810 | $ | 1,913,366 | ||||||||||||||
Unguaranteed residual values | 127,846 | 21,248 | 149,094 | |||||||||||||||||
Unearned income | (299,700 | ) | (100,451 | ) | (400,151 | ) | ||||||||||||||
Allowance for credit losses | (15,326 | ) | (7,823 | ) | (23,149 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,279,376 | 359,784 | 1,639,160 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 389,828 | 51,455 | 441,283 | |||||||||||||||||
Allowance for credit losses | (11,498 | ) | (1,849 | ) | (13,347 | ) | ||||||||||||||
Net investment in loan receivables | 378,330 | 49,606 | 427,936 | |||||||||||||||||
Net investment in finance receivables | $ | 1,657,706 | $ | 409,390 | $ | 2,067,096 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,581,711 | $ | 461,510 | $ | 2,043,221 | ||||||||||||||
Unguaranteed residual values | 148,664 | 21,025 | 169,689 | |||||||||||||||||
Unearned income | (316,030 | ) | (104,258 | ) | (420,288 | ) | ||||||||||||||
Allowance for credit losses | (16,979 | ) | (8,662 | ) | (25,641 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,397,366 | 369,615 | 1,766,981 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 414,960 | 47,293 | 462,253 | |||||||||||||||||
Allowance for credit losses | (12,322 | ) | (2,131 | ) | (14,453 | ) | ||||||||||||||
Net investment in loan receivables | 402,638 | 45,162 | 447,800 | |||||||||||||||||
Net investment in finance receivables | $ | 1,800,004 | $ | 414,777 | $ | 2,214,781 | ||||||||||||||
Allowance for Credit Losses and Aging of Receivables | ||||||||||||||||||||
We estimate our finance receivable risks and provide an allowance for credit losses accordingly. We evaluate the adequacy of the allowance for credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral and make adjustments to the allowance as necessary. This evaluation is inherently subjective and actual results may differ significantly from estimated reserves. | ||||||||||||||||||||
We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for unsecured loan receivables that are more than 90 days past due. We resume revenue recognition when payments reduce the account balance aging to 60 days or less past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our finance receivable credit risk is limited because of our large number of clients, small account balances for most of our clients, and geographic and industry diversification. | ||||||||||||||||||||
Activity in the allowance for credit losses for the nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2013 | $ | 16,979 | $ | 8,662 | $ | 12,322 | $ | 2,131 | $ | 40,094 | ||||||||||
Amounts charged to expense | 4,617 | 2,031 | 7,265 | 793 | 14,706 | |||||||||||||||
Accounts written off | (6,270 | ) | (2,870 | ) | (8,089 | ) | (1,075 | ) | (18,304 | ) | ||||||||||
Balance at September 30, 2013 | $ | 15,326 | $ | 7,823 | $ | 11,498 | $ | 1,849 | $ | 36,496 | ||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2012 | $ | 28,661 | $ | 12,039 | $ | 20,272 | $ | 2,458 | $ | 63,430 | ||||||||||
Amounts charged to expense | 1,171 | 1,489 | 4,069 | 703 | 7,432 | |||||||||||||||
Accounts written off | (12,694 | ) | (3,708 | ) | (8,864 | ) | (973 | ) | (26,239 | ) | ||||||||||
Balance at September 30, 2012 | $ | 17,138 | $ | 9,820 | $ | 15,477 | $ | 2,188 | $ | 44,623 | ||||||||||
Aging of Receivables | ||||||||||||||||||||
The aging of gross finance receivables at September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,400,998 | $ | 417,881 | $ | 372,330 | $ | 49,330 | $ | 2,240,539 | ||||||||||
> 30 days and < 61 days | 27,467 | 8,845 | 9,233 | 1,276 | 46,821 | |||||||||||||||
> 60 days and < 91 days | 18,255 | 5,346 | 3,544 | 431 | 27,576 | |||||||||||||||
> 90 days and < 121 days | 5,383 | 3,982 | 2,026 | 221 | 11,612 | |||||||||||||||
> 120 days | 14,453 | 10,756 | 2,695 | 197 | 28,101 | |||||||||||||||
Total | $ | 1,466,556 | $ | 446,810 | $ | 389,828 | $ | 51,455 | $ | 2,354,649 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 5,383 | $ | 3,982 | $ | — | $ | — | $ | 9,365 | ||||||||||
Not accruing interest | 14,453 | 10,756 | 4,721 | 418 | 30,348 | |||||||||||||||
Total | $ | 19,836 | $ | 14,738 | $ | 4,721 | $ | 418 | $ | 39,713 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,497,797 | $ | 435,780 | $ | 392,108 | $ | 45,324 | $ | 2,371,009 | ||||||||||
> 30 days and < 61 days | 37,348 | 9,994 | 12,666 | 1,368 | 61,376 | |||||||||||||||
> 60 days and < 91 days | 24,059 | 5,198 | 4,577 | 285 | 34,119 | |||||||||||||||
> 90 days and < 121 days | 6,665 | 3,327 | 2,319 | 179 | 12,490 | |||||||||||||||
> 120 days | 15,842 | 7,211 | 3,290 | 137 | 26,480 | |||||||||||||||
Total | $ | 1,581,711 | $ | 461,510 | $ | 414,960 | $ | 47,293 | $ | 2,505,474 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,665 | $ | 3,327 | $ | — | $ | — | $ | 9,992 | ||||||||||
Not accruing interest | 15,842 | 7,211 | 5,609 | 316 | 28,978 | |||||||||||||||
Total | $ | 22,507 | $ | 10,538 | $ | 5,609 | $ | 316 | $ | 38,970 | ||||||||||
Credit Quality | ||||||||||||||||||||
The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client’s financial condition and, when applicable, payment history. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes ensure that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed. | ||||||||||||||||||||
We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. We do not use a third party to score our International portfolios because the cost to do so is prohibitive, it is a localized process and there is no single credit score model that covers all countries. | ||||||||||||||||||||
The table below shows the North America portfolio at September 30, 2013 and December 31, 2012 by relative risk class (low, medium, high) based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk, as defined by the third party, refers to the relative risk that an account in the next 12 month period may become delinquent. | ||||||||||||||||||||
• | 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. | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Low | $ | 1,097,080 | $ | 1,016,413 | ||||||||||||||||
Medium | 260,434 | 450,432 | ||||||||||||||||||
High | 53,569 | 43,658 | ||||||||||||||||||
Not Scored | 55,473 | 71,208 | ||||||||||||||||||
Total | $ | 1,466,556 | $ | 1,581,711 | ||||||||||||||||
Loan receivables | ||||||||||||||||||||
Low | $ | 271,874 | $ | 254,567 | ||||||||||||||||
Medium | 92,579 | 136,069 | ||||||||||||||||||
High | 11,666 | 14,624 | ||||||||||||||||||
Not Scored | 13,709 | 9,700 | ||||||||||||||||||
Total | $ | 389,828 | $ | 414,960 | ||||||||||||||||
Troubled Debt | ||||||||||||||||||||
We maintain a program for U.S. clients in our North America loan portfolio who are experiencing financial difficulties, but are able to make reduced payments over an extended period of time. Upon acceptance into the program, the client’s credit line is closed and interest accrual is suspended. There is generally no forgiveness of debt or reduction of balances owed. The balance of loans in this program, related loan loss allowance and write-offs are insignificant to the overall portfolio. | ||||||||||||||||||||
Leveraged Leases | ||||||||||||||||||||
Our investment in leveraged lease assets at September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Rental receivables | $ | 68,918 | $ | 83,254 | ||||||||||||||||
Unguaranteed residual values | 13,644 | 14,177 | ||||||||||||||||||
Principal and interest on non-recourse loans | (41,836 | ) | (55,092 | ) | ||||||||||||||||
Unearned income | (5,868 | ) | (7,793 | ) | ||||||||||||||||
Investment in leveraged leases | 34,858 | 34,546 | ||||||||||||||||||
Less: deferred taxes related to leveraged leases | (16,319 | ) | (19,372 | ) | ||||||||||||||||
Net investment in leveraged leases | $ | 18,539 | $ | 15,174 | ||||||||||||||||
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Notes To Condensed Consolidated Financial Statements [Abstract] | ' | |||||||||||||||||||
Discontinued Operations and Assets Held for Sale | ' | |||||||||||||||||||
Discontinued Operations and Assets Held For Sale | ||||||||||||||||||||
During the third quarter of 2013, we entered into an agreement to sell PBMS NA. The sale closed on October 1, 2013 and we received cash proceeds of $392 million. In addition, during the third quarter of 2013, we sold our Nordic furniture business. Total proceeds from this sale were not material. | ||||||||||||||||||||
During the second quarter of 2013, we entered into two separate agreements to sell PBMSi and completed the sale of IMS. We closed on the agreements to sell PBMSi on July 5, 2013 and August 31, 2013. Total proceeds from the sale of PBMSi and IMS were not material. | ||||||||||||||||||||
The following tables show selected financial information included in discontinued operations: | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | Total | |||||||||||||||||
Revenue | $ | 194,511 | $ | 4 | $ | 12,014 | $ | 206,529 | ||||||||||||
Loss from operations before taxes | $ | (14,438 | ) | $ | (1,072 | ) | $ | (4,381 | ) | $ | (19,891 | ) | ||||||||
Gain on sale | 13,269 | 1,196 | 4,465 | 18,930 | ||||||||||||||||
(Loss) income before taxes | (1,169 | ) | 124 | 84 | (961 | ) | ||||||||||||||
Tax provision (benefit) | 81,084 | 168 | (9 | ) | 81,243 | |||||||||||||||
(Loss) income from discontinued operations | $ | (82,253 | ) | $ | (44 | ) | $ | 93 | $ | (82,204 | ) | |||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | Total | |||||||||||||||||
Revenue | $ | 220,887 | $ | 32,461 | $ | 12,539 | $ | 265,887 | ||||||||||||
Income (loss) before taxes | $ | 14,491 | $ | (30,086 | ) | $ | 79 | $ | (15,516 | ) | ||||||||||
Tax provision (benefit) | 7,210 | (11,335 | ) | 22 | (4,103 | ) | ||||||||||||||
(Loss) income from discontinued operations | $ | 7,281 | $ | (18,751 | ) | $ | 57 | $ | (11,413 | ) | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | Total | |||||||||||||||||
Revenue | $ | 639,237 | $ | 23,036 | $ | 37,785 | $ | 700,058 | ||||||||||||
Loss from operations before taxes | $ | (116,018 | ) | $ | (3,050 | ) | $ | (4,859 | ) | $ | (123,927 | ) | ||||||||
Gain (loss) on sale | 13,269 | (2,717 | ) | 4,465 | 15,017 | |||||||||||||||
Loss before taxes | (102,749 | ) | (5,767 | ) | (394 | ) | (108,910 | ) | ||||||||||||
Tax provision (benefit) | 61,679 | (1,076 | ) | (144 | ) | 60,459 | ||||||||||||||
(Loss) income from discontinued operations | $ | (164,428 | ) | $ | (4,691 | ) | $ | (250 | ) | $ | (169,369 | ) | ||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | Capital Services (1) | Total | ||||||||||||||||
Revenue | $ | 679,080 | $ | 100,443 | $ | 38,081 | $ | — | $ | 817,604 | ||||||||||
Income (loss) before taxes | $ | 47,015 | $ | (34,051 | ) | $ | 1,370 | $ | — | $ | 14,334 | |||||||||
Tax provision (benefit) | 20,589 | (12,563 | ) | 383 | (19,332 | ) | (10,923 | ) | ||||||||||||
(Loss) income from discontinued operations | $ | 26,426 | $ | (21,488 | ) | $ | 987 | $ | 19,332 | 25,257 | ||||||||||
(1) Represents tax benefits arising from the resolution of tax examinations related to our Capital Services business, which was sold in 2006. | ||||||||||||||||||||
The pre-tax loss from operations for PBMS for the three and nine months ended September 30, 2013 includes an estimated loss on disposal of $20 million and $36 million, respectively. The pre-tax loss from operations for PBMS for the nine months ended September 30, 2013 also includes goodwill impairment charges of $100 million and asset impairment charges of $15 million. The inputs used to determine the fair value of the long-lived assets and goodwill were classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||
The assets and related liabilities held for sale at September 30, 2013 consist of the following: | ||||||||||||||||||||
Accounts receivables | $ | 145,955 | ||||||||||||||||||
Inventories | 1,595 | |||||||||||||||||||
Other current assets and prepayments | 11,948 | |||||||||||||||||||
Total current assets | 159,498 | |||||||||||||||||||
Property, plant and equipment, net (1) | 77,001 | |||||||||||||||||||
Goodwill | 302,487 | |||||||||||||||||||
Intangible assets, net | 7,193 | |||||||||||||||||||
Other assets | 4,462 | |||||||||||||||||||
Assets held for sale | $ | 550,641 | ||||||||||||||||||
Accounts payable and accrued liabilities | $ | 77,639 | ||||||||||||||||||
Advance billings | 9,862 | |||||||||||||||||||
Total current liabilities | 87,501 | |||||||||||||||||||
Other non-current liabilities | 30,676 | |||||||||||||||||||
Liabilities related to assets held for sale | $ | 118,177 | ||||||||||||||||||
(1) Also includes the carrying value of our corporate headquarters building and certain surrounding parcels of land. See Note 6. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivative Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Value Measurements and Derivative Instruments | ' | ||||||||||||||||||
Fair Value Measurements and Derivative Instruments | |||||||||||||||||||
We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value: | |||||||||||||||||||
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 for substantially the full term of the assets or liabilities. | |||||||||||||||||||
Level 3 – Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability. | |||||||||||||||||||
The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at September 30, 2013 and December 31, 2012. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy. | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 194,486 | $ | 147,259 | $ | — | $ | 341,745 | |||||||||||
Equity securities | — | 25,384 | — | 25,384 | |||||||||||||||
Commingled fixed income securities | — | 26,772 | — | 26,772 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 118,071 | 18,049 | — | 136,120 | |||||||||||||||
Debt securities - corporate | — | 31,534 | — | 31,534 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 159,300 | — | 159,300 | |||||||||||||||
Derivatives | |||||||||||||||||||
Interest rate swaps | — | 1,855 | — | 1,855 | |||||||||||||||
Foreign exchange contracts | — | 1,845 | — | 1,845 | |||||||||||||||
Total assets | $ | 312,557 | $ | 411,998 | $ | — | $ | 724,555 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (5,473 | ) | $ | — | $ | (5,473 | ) | |||||||||
Total liabilities | $ | — | $ | (5,473 | ) | $ | — | $ | (5,473 | ) | |||||||||
December 31, 2012 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 581,648 | $ | 34,369 | $ | — | $ | 616,017 | |||||||||||
Equity securities | — | 25,106 | — | 25,106 | |||||||||||||||
Commingled fixed income securities | — | 29,359 | — | 29,359 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 124,221 | 18,908 | — | 143,129 | |||||||||||||||
Debt securities - corporate | — | 43,926 | — | 43,926 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 162,375 | — | 162,375 | |||||||||||||||
Derivatives | |||||||||||||||||||
Interest rate swaps | — | 10,117 | — | 10,117 | |||||||||||||||
Foreign exchange contracts | — | 2,582 | — | 2,582 | |||||||||||||||
Total assets | $ | 705,869 | $ | 326,742 | $ | — | $ | 1,032,611 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (1,174 | ) | $ | — | $ | (1,174 | ) | |||||||||
Total liabilities | $ | — | $ | (1,174 | ) | $ | — | $ | (1,174 | ) | |||||||||
Investment Securities | |||||||||||||||||||
The valuation of investment securities is based on the market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification into the fair value hierarchy: | |||||||||||||||||||
• | Money Market Funds / Commercial Paper: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low-risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2. | ||||||||||||||||||
• | Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign common stock. These mutual funds are classified as Level 2 as they are not separately listed on an exchange. | ||||||||||||||||||
• | Commingled Fixed Income Securities: Mutual funds that invest in a variety of fixed income securities including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. The value of the funds is based on the market value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These commingled funds are not listed on an exchange in an active market and are classified as Level 2. | ||||||||||||||||||
• | Debt Securities – U.S. and Foreign Governments, Agencies and Municipalities: Debt securities are classified as Level 1 where active, high volume trades for identical securities exist. Valuation adjustments are not applied to these securities. Debt securities valued using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities are classified as Level 2. | ||||||||||||||||||
• | Debt Securities – Corporate: Corporate debt securities are valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2. | ||||||||||||||||||
• | Mortgage-Backed Securities (MBS) / Asset-Backed Securities (ABS): These securities are valued based on external pricing indices. When external index pricing is not observable, MBS and ABS are valued based on external price/spread data. These securities are classified as Level 2. | ||||||||||||||||||
Investment securities include investments held by The Pitney Bowes Bank (the Bank), an indirect wholly owned subsidiary whose primary business is to provide financing solutions to clients that rent or lease postage meters. The Bank's key product offering, Purchase Power, is a revolving credit solution, which enables clients to finance their postage costs when they refill their meter. The Bank also provides a deposit solution to those clients that prefer to prepay postage and earn interest on their deposits. When a client refills their postage meter, the funds are withdrawn from the savings account to pay for the postage. The Bank's assets and liabilities consist primarily of cash, finance receivables, short and long-term investments and deposit accounts. | |||||||||||||||||||
The Bank's investment securities are classified as available-for-sale and recorded at fair value on the Condensed Consolidated Balance Sheets as cash and cash equivalents, short-term investments and other assets depending on the type of investment and maturity. Unrealized holding gains and losses are recorded, net of tax, in accumulated other comprehensive income (AOCI). | |||||||||||||||||||
Available-for-sale securities at September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Money market funds / commercial paper | $ | 36,134 | $ | — | $ | (13 | ) | $ | 36,121 | ||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 116,146 | 1,405 | (2,441 | ) | 115,110 | ||||||||||||||
Debt securities - corporate | 31,084 | 915 | (465 | ) | 31,534 | ||||||||||||||
Mortgage-backed / asset-backed securities | 159,203 | 1,855 | (1,758 | ) | 159,300 | ||||||||||||||
Total | $ | 342,567 | $ | 4,175 | $ | (4,677 | ) | $ | 342,065 | ||||||||||
December 31, 2012 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Money market funds / commercial paper | $ | 44,611 | $ | 53 | $ | — | $ | 44,664 | |||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 127,807 | 3,972 | (56 | ) | 131,723 | ||||||||||||||
Debt securities - corporate | 41,095 | 2,851 | (20 | ) | 43,926 | ||||||||||||||
Mortgage-backed / asset-backed securities | 162,180 | 3,340 | (3,145 | ) | 162,375 | ||||||||||||||
Total | $ | 375,693 | $ | 10,216 | $ | (3,221 | ) | $ | 382,688 | ||||||||||
Scheduled maturities of investment securities at September 30, 2013 were as follows: | |||||||||||||||||||
Amortized cost | Estimated fair value | ||||||||||||||||||
Within 1 year | $ | 55,811 | $ | 55,853 | |||||||||||||||
After 1 year through 5 years | 61,774 | 62,635 | |||||||||||||||||
After 5 years through 10 years | 62,694 | 62,301 | |||||||||||||||||
After 10 years | 162,288 | 161,276 | |||||||||||||||||
Total | $ | 342,567 | $ | 342,065 | |||||||||||||||
We have not experienced any significant write-offs in our investment portfolio. The majority of our MBS are either guaranteed or supported by the U.S. government. We have no investments in inactive markets that would warrant a possible change in our pricing methods or classification within the fair value hierarchy. Further, we have no investments in auction rate securities. | |||||||||||||||||||
Derivative Instruments | |||||||||||||||||||
In the normal course of business, we are exposed to the impact of interest rate changes and foreign currency fluctuations. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivatives to manage the related cost of debt and to limit the effects of foreign exchange rate fluctuations on financial results. We do not use derivatives for trading or speculative purposes. We record our derivative instruments at fair value, and the accounting for changes in the fair value of the derivatives depends on the intended use of the derivative, the resulting designation, and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. | |||||||||||||||||||
As required by the fair value measurements guidance, we have incorporated counterparty credit risk and our credit risk into the fair value measurement of our derivative assets and liabilities, respectively. We derive credit risk from observable data related to credit default swaps. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties. | |||||||||||||||||||
The valuation of our interest rate swaps is based on the income approach using a model with inputs that are observable or that can be derived from or corroborated by observable market data. The valuation of our foreign exchange derivatives is based on the market approach using observable market inputs, such as forward rates. | |||||||||||||||||||
The fair value of our derivative instruments at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Derivatives designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | $ | 398 | $ | 78 | |||||||||||||||
Other assets: | |||||||||||||||||||
Interest rate swaps | 1,855 | 10,117 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (584 | ) | (320 | ) | |||||||||||||||
Derivatives not designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | 1,447 | 2,504 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (4,889 | ) | (854 | ) | |||||||||||||||
Total derivative assets | $ | 3,700 | $ | 12,699 | |||||||||||||||
Total derivative liabilities | (5,473 | ) | (1,174 | ) | |||||||||||||||
Total net derivative (liabilities) assets | $ | (1,773 | ) | $ | 11,525 | ||||||||||||||
Interest Rate Swaps | |||||||||||||||||||
Derivatives designated as fair value hedges include interest rate swaps related to fixed rate debt. Changes in the fair value of both the derivative and item being hedged are recognized in earnings. The following represents the results of fair value hedging relationships for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 863 | $ | 1,578 | $ | (2,742 | ) | $ | (5,484 | ) | ||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 3,631 | $ | 8,351 | $ | (10,969 | ) | $ | (25,652 | ) | ||||||||
Foreign Exchange Contracts | |||||||||||||||||||
We enter into foreign currency exchange contracts to mitigate the currency risk associated with the anticipated purchase of inventory between affiliates and from third parties. These contracts are designated as cash flow hedges. The effective portion of the gain or loss on cash flow hedges is included in AOCI in the period that the change in fair value occurs and is reclassified to earnings in the period that the hedged item is recorded in earnings. At September 30, 2013 and December 31, 2012, we had outstanding contracts associated with these anticipated transactions with a notional amount of $29 million and $25 million, respectively. The value of these contracts at September 30, 2013 and December 31, 2012 was less than $1 million. | |||||||||||||||||||
The amounts included in AOCI at September 30, 2013 will be recognized in earnings within the next 12 months. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges. | |||||||||||||||||||
The following represents the results of cash flow hedging relationships for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | Location of Gain (Loss) | Gain (Loss) Reclassified | |||||||||||||||||
Recognized in AOCI | (Effective Portion) | from AOCI to Earnings | |||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | (343 | ) | $ | (863 | ) | Revenue | $ | (169 | ) | $ | 456 | |||||||
Cost of sales | 108 | (56 | ) | ||||||||||||||||
$ | (61 | ) | $ | 400 | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | Location of Gain (Loss) | Gain (Loss) Reclassified | |||||||||||||||||
Recognized in AOCI | (Effective Portion) | from AOCI to Earnings | |||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | 457 | $ | (1,672 | ) | Revenue | $ | (922 | ) | $ | 1,230 | ||||||||
Cost of sales | 520 | (129 | ) | ||||||||||||||||
$ | (402 | ) | $ | 1,101 | |||||||||||||||
We also enter into foreign exchange contracts to minimize the impact of exchange rate fluctuations on short-term intercompany loans and related interest that are denominated in a foreign currency. The revaluation of the intercompany loans and interest and the mark-to-market adjustment on the derivatives are both recorded in earnings. Outstanding foreign exchange contracts to buy or sell various currencies had a net liability value of $3 million at September 30, 2013 and a net asset value of $2 million at December 31, 2012. All outstanding contracts at September 30, 2013 mature by the end of the year. | |||||||||||||||||||
The following represents the results of our non-designated derivative instruments for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | |||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (6,798 | ) | $ | 939 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | |||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (12,793 | ) | $ | (2,129 | ) | ||||||||||||
Credit-Risk-Related Contingent Features | |||||||||||||||||||
Certain derivative instruments contain credit-risk-related contingent features that would require us to post collateral based on a combination of our long-term senior unsecured debt ratings and the net fair value of our derivatives. At September 30, 2013, we were not required to post any collateral. The maximum amount of collateral that we would have been required to post at September 30, 2013, had the credit-risk-related contingent features been triggered, was $4 million. | |||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||
Our financial instruments include cash and cash equivalents, investment securities, accounts receivable, loan receivables, derivative instruments, accounts payable and debt. The carrying value for cash and cash equivalents, accounts receivable, loans receivable, and accounts payable approximate fair value because of the short maturity of these instruments. | |||||||||||||||||||
The fair value of our debt is estimated based on recently executed transactions and market price quotations. These inputs are classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Carrying value | $ | 3,650,590 | $ | 4,017,375 | |||||||||||||||
Fair value | $ | 3,867,130 | $ | 4,200,970 | |||||||||||||||
Restructuring_Charges_and_Asse
Restructuring Charges and Asset Impairments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Restructuring Charges and Asset Impairments | ' | |||||||||||||||||||
Restructuring Charges and Asset Impairments | ||||||||||||||||||||
Restructuring Charges | ||||||||||||||||||||
During the second quarter of 2013, we announced that we would implement initiatives and take actions designed to enhance our responsiveness to changing market conditions, further streamline our business operations, reduce our cost structure and create long-term flexibility to invest in growth and provide both process and operational improvements. We expect that these actions will result in restructuring charges in the range of $75 to $125 million, which will be recognized as specific initiatives are approved and implemented. | ||||||||||||||||||||
Net restructuring charges included in restructuring charges and asset impairments for the nine months ended September 30, 2013 were $28 million. This amount was net of reserve reversals of $6 million under prior restructuring programs. We perform a review of our remaining obligations under prior restructuring programs at the end of each period and adjust our reserves accordingly. | ||||||||||||||||||||
Activity in our restructuring reserves for the nine months ended September 30, 2013 was as follows: | ||||||||||||||||||||
Severance and benefits costs | Pension and | Asset | Other exit | Total | ||||||||||||||||
Retiree | impairments | costs | ||||||||||||||||||
Medical | ||||||||||||||||||||
Balance at January 1, 2013 | $ | 62,540 | $ | — | $ | — | $ | 5,218 | $ | 67,758 | ||||||||||
Expenses, net (1) | 25,705 | 1,964 | 71 | 1,528 | 29,268 | |||||||||||||||
Cash payments | (38,125 | ) | — | — | (3,228 | ) | (41,353 | ) | ||||||||||||
Non-cash charges | — | (1,964 | ) | (71 | ) | — | (2,035 | ) | ||||||||||||
Balance at September 30, 2013 | $ | 50,120 | $ | — | $ | — | $ | 3,518 | $ | 53,638 | ||||||||||
(1)Â Â Â Â Includes restructuring charges for both continuing and discontinued operations. | ||||||||||||||||||||
The majority of the remaining restructuring payments are expected to be paid through 2014; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 2014. We expect that cash flows from operations will be sufficient to fund these payments. The carrying value of our restructuring liability approximates fair value due to the short-term nature of the obligations. | ||||||||||||||||||||
Asset Impairments | ||||||||||||||||||||
During the third quarter of 2013, we entered into an agreement to sell our corporate headquarters building and certain surrounding parcels of land. The fair value of the building and land was determined based on the estimated selling price less the costs to sell, and a non-cash impairment charge of $26 million was recognized to write-down the carrying value of the building and land to their fair value. The inputs used to determine the fair value were classified as Level 3. The impairment charge was included as restructuring charges and asset impairments in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2013. We expect to close on the sale by the end of the second quarter of 2014. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials and work in process | $ | 46,663 | $ | 66,221 | ||||
Supplies and service parts | 55,453 | 72,551 | ||||||
Finished products | 58,337 | 68,335 | ||||||
Inventory at FIFO cost | 160,453 | 207,107 | ||||||
Excess of FIFO cost over LIFO cost | (26,187 | ) | (27,429 | ) | ||||
Total inventory, net | $ | 134,266 | $ | 179,678 | ||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Intangible Assets and Goodwill | ' | |||||||||||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer relationships | $ | 353,241 | $ | (244,275 | ) | $ | 108,966 | $ | 407,901 | $ | (269,100 | ) | $ | 138,801 | ||||||||||
Supplier relationships | 29,000 | (24,288 | ) | 4,712 | 29,000 | (22,113 | ) | 6,887 | ||||||||||||||||
Software & technology | 166,397 | (153,153 | ) | 13,244 | 169,632 | (151,628 | ) | 18,004 | ||||||||||||||||
Trademarks & trade names | 35,177 | (33,549 | ) | 1,628 | 35,078 | (32,615 | ) | 2,463 | ||||||||||||||||
Non-compete agreements | 7,349 | (7,311 | ) | 38 | 7,471 | (7,412 | ) | 59 | ||||||||||||||||
Total intangible assets | $ | 591,164 | $ | (462,576 | ) | $ | 128,588 | $ | 649,082 | $ | (482,868 | ) | $ | 166,214 | ||||||||||
Amortization expense for intangible assets was $8 million and $9 million for the three months ended September 30, 2013 and 2012, respectively, and $26 million and $30 million for the nine months ended September 30, 2013 and 2012, respectively. The future amortization expense for intangible assets as of September 30, 2013 was as follows: | ||||||||||||||||||||||||
Remaining for year ended December 31, 2013 | $ | 8,848 | ||||||||||||||||||||||
Year ended December 31, 2014 | 34,246 | |||||||||||||||||||||||
Year ended December 31, 2015 | 30,288 | |||||||||||||||||||||||
Year ended December 31, 2016 | 22,935 | |||||||||||||||||||||||
Year ended December 31, 2017 | 11,352 | |||||||||||||||||||||||
Thereafter | 20,919 | |||||||||||||||||||||||
Total | $ | 128,588 | ||||||||||||||||||||||
Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, future acquisitions and accelerated amortization. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
As a result of the change in reporting segments, we reallocated goodwill among some of our segments and performed the required goodwill impairment test. Based on the results of the impairment tests, we determined that the estimated fair values of the affected reporting units exceeded the carrying values. | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows: | ||||||||||||||||||||||||
Gross value before accumulated impairment | Accumulated impairment | December 31, 2012 | Impairment (2) | Other (1) | September 30, | |||||||||||||||||||
2013 | ||||||||||||||||||||||||
North America Mailing | $ | 355,874 | $ | — | $ | 355,874 | $ | — | $ | 2,439 | $ | 358,313 | ||||||||||||
International Mailing | 183,908 | — | 183,908 | (1,162 | ) | (1,633 | ) | 181,113 | ||||||||||||||||
Small & Medium Business Solutions | 539,782 | — | 539,782 | (1,162 | ) | 806 | 539,426 | |||||||||||||||||
Production Mail | 131,865 | — | 131,865 | — | (15,050 | ) | 116,815 | |||||||||||||||||
Management Services (2) | 488,399 | (84,500 | ) | 403,899 | (100,253 | ) | (1,159 | ) | 302,487 | |||||||||||||||
Presort Services | 259,106 | (63,965 | ) | 195,141 | — | — | 195,141 | |||||||||||||||||
Enterprise Business Solutions | 879,370 | (148,465 | ) | 730,905 | (100,253 | ) | (16,209 | ) | 614,443 | |||||||||||||||
Digital Commerce Solutions | 865,451 | — | 865,451 | — | 12,345 | 877,796 | ||||||||||||||||||
Total | $ | 2,284,603 | $ | (148,465 | ) | $ | 2,136,138 | $ | (101,415 | ) | $ | (3,058 | ) | $ | 2,031,665 | |||||||||
Reclassified to Assets held for sale (2) | (302,487 | ) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 1,729,178 | ||||||||||||||||||||||
-1 | Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments. | |||||||||||||||||||||||
-2 | The goodwill impairment charges are included in (loss) income from discontinued operations in the Condensed Consolidated Statements of Income (Loss). The remaining carrying value of goodwill in the Management Services segment is included in assets held for sale in the Condensed Consolidated Balance Sheet (see Note 4). Management Services was previously a reporting segment prior to our change in segment reporting (see Note 2). |
Debt
Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
Debt consisted of the following: | |||||||||
September 30, | 31-Dec-12 | ||||||||
2013 | |||||||||
Term loans | $ | 230,000 | $ | 230,000 | |||||
3.88% | notes due 2013 | — | 375,000 | ||||||
4.88% | notes due 2014 (1), (2) | 299,570 | 450,000 | ||||||
5.00% | notes due 2015 (1) | 274,879 | 400,000 | ||||||
4.75% | notes due 2016 (1) | 370,914 | 500,000 | ||||||
5.75% | notes due 2017 | 500,000 | 500,000 | ||||||
5.60% | notes due 2018 | 250,000 | 250,000 | ||||||
4.75% | notes due 2018 | 350,000 | 350,000 | ||||||
6.25% | notes due 2019 | 300,000 | 300,000 | ||||||
5.25% | notes due 2022 | 110,000 | 110,000 | ||||||
5.25% | notes due 2037 | 500,000 | 500,000 | ||||||
6.70% | notes due 2043 (3) | 425,000 | — | ||||||
Other (4) | 40,227 | 52,375 | |||||||
Total debt | 3,650,590 | 4,017,375 | |||||||
Current portion | 299,570 | 375,000 | |||||||
Long-term debt | $ | 3,351,020 | $ | 3,642,375 | |||||
-1 | During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income. | ||||||||
-2 | Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements. | ||||||||
-3 | During the first quarter, we issued $425 million of 6.7% fixed rate 30-year notes. Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. We used the net proceeds from the notes to fund the Tender Offer. | ||||||||
-4 | Other consists of the unamortized proceeds received from unwinding of interest rate swaps, unamortized net debt discounts and the fair value adjustment of interest rate swaps. | ||||||||
At September 30, 2013, there were no outstanding commercial paper borrowings. During the quarter, commercial paper borrowings averaged $33 million at a weighted-average interest rate of 0.42% and the maximum amount outstanding at any time was $100 million. |
Noncontrolling_Interests_Prefe
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) | 9 Months Ended |
Sep. 30, 2013 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) | ' |
Noncontrolling Interests (Preferred Stockholders’ Equity in Subsidiaries) | |
Pitney Bowes International Holdings, Inc. (PBIH), a subsidiary, has 300,000 shares, or $300 million, of outstanding perpetual voting preferred stock (the Preferred Stock) held by certain institutional investors. The holders of the Preferred Stock are entitled as a group to 25% of the combined voting power of all classes of capital stock of PBIH. All outstanding common stock of PBIH, representing the remaining 75% of the combined voting power of all classes of capital stock, is owned directly or indirectly by the company. The Preferred Stock is entitled to cumulative dividends at a rate of 6.125% through 2016 after which it becomes callable and, if it remains outstanding, will yield a dividend that increases by 50% every six months thereafter. No dividends were in arrears at September 30, 2013 or December 31, 2012. There was no change in the carrying value of noncontrolling interests during the period ended September 30, 2013 or the year ended December 31, 2012. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Changes in stockholders’ equity for the nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||
Preferred | Preference | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | |||||||||||||||||||||||||
stock | stock | |||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4 | $ | 648 | $ | 323,338 | $ | 223,847 | $ | 4,744,802 | $ | (681,213 | ) | $ | (4,500,795 | ) | $ | 110,631 | ||||||||||||||
Net income | — | — | — | — | 52,746 | — | — | 52,746 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | (15,380 | ) | — | (15,380 | ) | ||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common ($0.75 per share) | — | — | — | — | (150,920 | ) | — | — | (150,920 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (35 | ) | — | — | (35 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (33,412 | ) | — | — | 35,546 | 2,134 | |||||||||||||||||||||||
Conversions to common stock | — | (40 | ) | — | (853 | ) | — | — | 893 | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 12,061 | — | — | — | 12,061 | ||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 4 | $ | 608 | $ | 323,338 | $ | 201,643 | $ | 4,646,593 | $ | (696,593 | ) | $ | (4,464,356 | ) | $ | 11,237 | ||||||||||||||
Preferred | Preference | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | |||||||||||||||||||||||||
stock | stock | |||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 4 | $ | 659 | $ | 323,338 | $ | 240,584 | $ | 4,600,217 | $ | (661,645 | ) | $ | (4,542,143 | ) | $ | (38,986 | ) | |||||||||||||
Net income | — | — | — | — | 334,826 | — | — | 334,826 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 35,777 | — | 35,777 | ||||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common ($1.125 per share) | — | — | — | — | (225,244 | ) | — | — | (225,244 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (38 | ) | — | — | (38 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (31,306 | ) | — | — | 36,138 | 4,832 | |||||||||||||||||||||||
Conversions to common stock | — | (6 | ) | — | (124 | ) | — | — | 130 | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 13,466 | — | — | — | 13,466 | ||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 4 | $ | 653 | $ | 323,338 | $ | 222,620 | $ | 4,709,761 | $ | (625,868 | ) | $ | (4,505,875 | ) | $ | 124,633 | ||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||
Accuumulated Other Comprehensive Loss | ' | |||||||||||||||||||
12. Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI (a) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||||||
Revenue | $ | (169 | ) | $ | 456 | $ | (922 | ) | $ | 1,230 | ||||||||||
Cost of sales | 108 | (56 | ) | 520 | (129 | ) | ||||||||||||||
Interest expense | (507 | ) | (507 | ) | (1,521 | ) | (1,521 | ) | ||||||||||||
Total before tax | (568 | ) | (107 | ) | (1,923 | ) | (420 | ) | ||||||||||||
Tax benefit | 222 | 43 | 750 | 165 | ||||||||||||||||
Net of tax | $ | (346 | ) | $ | (64 | ) | $ | (1,173 | ) | $ | (255 | ) | ||||||||
Unrealized gains (losses) on available for sale securities | ||||||||||||||||||||
Interest income | $ | 1,640 | $ | (41 | ) | $ | (962 | ) | $ | (517 | ) | |||||||||
Tax benefit | (607 | ) | 15 | 356 | 191 | |||||||||||||||
Net of tax | $ | 1,033 | $ | (26 | ) | $ | (606 | ) | $ | (326 | ) | |||||||||
Pension and Postretirement Benefit Plans (b) | ||||||||||||||||||||
Transition credit | $ | 2 | $ | 2 | $ | 6 | $ | 6 | ||||||||||||
Prior service (costs) credit | (163 | ) | 295 | (524 | ) | 884 | ||||||||||||||
Actuarial losses | (12,136 | ) | (18,852 | ) | (44,038 | ) | (56,376 | ) | ||||||||||||
Total before tax | (12,297 | ) | (18,555 | ) | (44,556 | ) | (55,486 | ) | ||||||||||||
Tax benefit | 4,347 | 6,404 | 15,613 | 20,371 | ||||||||||||||||
Net of tax | $ | (7,950 | ) | $ | (12,151 | ) | $ | (28,943 | ) | $ | (35,115 | ) | ||||||||
(a) Â Â Â Â Amounts in parentheses indicate debits (reductions) to income. | ||||||||||||||||||||
(b) | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details). | |||||||||||||||||||
Changes in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||
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 at January 1, 2013 | $ | (7,777 | ) | $ | 4,513 | $ | (759,199 | ) | $ | 81,250 | $ | (681,213 | ) | |||||||
Other comprehensive income (loss) before reclassifications (a) | (211 | ) | (5,273 | ) | — | (36,805 | ) | (42,289 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b), (c) | 1,173 | 606 | 28,943 | (3,813 | ) | 26,909 | ||||||||||||||
Net current period other comprehensive income | 962 | (4,667 | ) | 28,943 | (40,618 | ) | (15,380 | ) | ||||||||||||
Balance at September 30, 2013 | $ | (6,815 | ) | $ | (154 | ) | $ | (730,256 | ) | $ | 40,632 | $ | (696,593 | ) | ||||||
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 at January 1, 2012 | $ | (8,438 | ) | $ | 4,387 | $ | (741,546 | ) | $ | 83,952 | $ | (661,645 | ) | |||||||
Other comprehensive income (loss) before reclassifications (a) | 323 | 641 | — | (883 | ) | 81 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 255 | 326 | 35,115 | — | 35,696 | |||||||||||||||
Net current period other comprehensive income | 578 | 967 | 35,115 | (883 | ) | 35,777 | ||||||||||||||
Balance at September 30, 2012 | $ | (7,860 | ) | $ | 5,354 | $ | (706,431 | ) | $ | 83,069 | $ | (625,868 | ) | |||||||
(a) Â Â Â Â Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | ||||||||||||||||||||
(b) Â Â Â Â See table above for additional details of these reclassifications. | ||||||||||||||||||||
(c) | Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective tax rate for the three months ended September 30, 2013 and 2012 was 12.3% and 24.8%, respectively, and the effective tax rate for the nine months ended September 30, 2013 and 2012 was 19.1% and 20.8%, respectively. | |
The effective tax rate for the three and nine months ended September 30, 2013 includes a tax benefit of $13 million from an affiliate reorganization and benefits of $4 million and $11 million, respectively, related to tax planning initiatives. The effective tax rate for the nine months ended September 30, 2013 also includes benefits of $5 million from the adjustment of non-U.S. tax accounts from prior periods and $4 million from the retroactive effect of 2013 U.S. tax legislation. | |
The effective tax rate for the three and nine months ended September 30, 2012 includes tax benefits of $36 million and $58 million, respectively, from the resolution of tax examinations and tax accruals of $28 million for the repatriation of non-U.S. earnings. The effective tax rate for the nine months ended September 30, 2012 also includes tax benefits of $17 million from the sale of non-U.S. leveraged lease assets | |
As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S., other countries and local jurisdictions in which we have operations. We expect the examination of our 2009 through 2011 tax returns by the Internal Revenue Service (IRS) to be completed within the next 12 months. We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we do business and account for the related financial statement implications. We believe we have established tax reserves that are appropriate given the possibility of tax adjustments. However, determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax law and the possibility of tax adjustments. Future changes in tax reserve requirements could have a material impact, positive or negative, on our results of operations, financial position and cash flows. It is reasonably possible that the amount of our unrecognized tax benefits will decrease in the next 12 months, and we expect this change could be up to twenty percent of our unrecognized tax benefits. | |
On August 27, 2012, the United States Court of Appeals for the Third Circuit overturned a prior Tax Court decision and ruled in favor of the IRS and adverse to the Historic Boardwalk Hall LLC, a partnership in which we had made an investment in the year 2000. The case has been sent back to the Tax Court for additional proceedings. Based on our entitlement to indemnification under the partnership agreement, we do not expect this matter to have a material effect on our results of operations. However, the potential for a difference in the timing of payments which may be due to taxing authorities and the timing of receipts due to us under the partnership agreement may cause fluctuations in our cash flows in future periods. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Notes To Condensed Consolidated Financial Statements [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In the ordinary course of business, we are routinely defendants in, or party to a number of pending and threatened legal actions. These may involve litigation by or against us relating to, among other things, contractual rights under vendor, insurance or other contracts; intellectual property or patent rights; equipment, service, payment or other disputes with customers; or disputes with employees. Some of these actions may be brought as a purported class action on behalf of a purported class of employees, customers or others. In management's opinion, the potential liability, if any, that may result from these actions, either individually or collectively, is not reasonably expected to have a material effect on our financial position, results of operations or cash flows. However, as litigation is inherently unpredictable, there can be no assurances in this regard. |
Pensions_and_Other_Benefit_Pro
Pensions and Other Benefit Programs | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Notes To Condensed Consolidated Financial Statements [Abstract] | ' | |||||||||||||||
Pensions and Other Benefit Programs | ' | |||||||||||||||
Pensions and Other Benefit Programs | ||||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||||
The components of net periodic benefit cost for defined benefit pension plans were as follows: | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 3,597 | $ | 4,735 | $ | 968 | $ | 1,774 | ||||||||
Interest cost | 18,264 | 20,260 | 1,870 | 6,909 | ||||||||||||
Expected return on plan assets | (26,781 | ) | (30,406 | ) | (3,266 | ) | (8,069 | ) | ||||||||
Amortization of transition credit | — | — | (2 | ) | (2 | ) | ||||||||||
Amortization of prior service cost | 95 | 200 | 28 | 28 | ||||||||||||
Amortization of net actuarial loss | 7,690 | 13,240 | 2,873 | 3,558 | ||||||||||||
Settlement | 145 | — | — | 192 | ||||||||||||
Special termination benefits | — | — | 104 | — | ||||||||||||
Net periodic benefit cost | $ | 3,010 | $ | 8,029 | $ | 2,575 | $ | 4,390 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 10,890 | $ | 14,204 | $ | 5,280 | $ | 5,805 | ||||||||
Interest cost | 55,169 | 60,780 | 25,246 | 20,766 | ||||||||||||
Expected return on plan assets | (80,908 | ) | (91,218 | ) | (31,187 | ) | (24,133 | ) | ||||||||
Amortization of transition credit | — | — | (6 | ) | (6 | ) | ||||||||||
Amortization of prior service cost | 318 | 602 | 84 | 83 | ||||||||||||
Amortization of net actuarial loss | 26,234 | 39,719 | 11,511 | 10,546 | ||||||||||||
Settlement | 1,561 | — | — | 442 | ||||||||||||
Special termination benefits | 548 | — | 104 | — | ||||||||||||
Curtailment | 814 | — | — | — | ||||||||||||
Net periodic benefit cost | $ | 14,626 | $ | 24,087 | $ | 11,032 | $ | 13,503 | ||||||||
Through September 30, 2013, we contributed $9 million to our U.S. pension plans and $10 million to our foreign pension plans. | ||||||||||||||||
Nonpension Postretirement Benefit Plans | ||||||||||||||||
The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 935 | $ | 801 | $ | 2,966 | $ | 2,560 | ||||||||
Interest cost | 2,186 | 2,896 | 7,210 | 8,685 | ||||||||||||
Amortization of prior service cost (credit) | 40 | (523 | ) | 122 | (1,569 | ) | ||||||||||
Amortization of net actuarial loss | 1,573 | 2,054 | 6,293 | 6,111 | ||||||||||||
Net periodic benefit cost | $ | 4,734 | $ | 5,228 | $ | 16,591 | $ | 15,787 | ||||||||
Contributions for benefit payments for our nonpension postretirement benefit plans were $5 million and $7 million for the three months ended September 30, 2013 and 2012, respectively, and $21 million for each of the nine months ended September 30, 2013 and 2012. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Notes To Condensed Consolidated Financial Statements [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The calculations of basic and diluted earnings per share are presented below: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to common stockholders: | ||||||||||||||||
Net income from continuing operations | $ | 76,677 | $ | 87,946 | $ | 222,115 | $ | 309,569 | ||||||||
Income (loss) from discontinued operations | (82,204 | ) | (11,413 | ) | (169,369 | ) | 25,257 | |||||||||
Net income - Pitney Bowes Inc. (numerator for diluted EPS) | (5,527 | ) | 76,533 | 52,746 | 334,826 | |||||||||||
Less: Preference stock dividend | (12 | ) | (12 | ) | (35 | ) | (38 | ) | ||||||||
Income attributable to common stockholders (numerator for basic EPS) | $ | (5,539 | ) | $ | 76,521 | $ | 52,711 | $ | 334,788 | |||||||
Denominator (in thousands): | ||||||||||||||||
Weighted-average shares used in basic EPS | 201,827 | 200,593 | 201,490 | 200,266 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Preferred stock | 2 | 2 | 2 | 2 | ||||||||||||
Preference stock | 376 | 399 | 386 | 399 | ||||||||||||
Stock plans | 935 | 608 | 712 | 458 | ||||||||||||
Weighted-average shares used in diluted EPS | 203,140 | 201,602 | 202,590 | 201,125 | ||||||||||||
Basic earnings per share (1): | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.44 | $ | 1.1 | $ | 1.55 | ||||||||
Discontinued operations | (0.41 | ) | (0.06 | ) | (0.84 | ) | 0.13 | |||||||||
Net income | $ | (0.03 | ) | $ | 0.38 | $ | 0.26 | $ | 1.67 | |||||||
Diluted earnings per share (1): | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.44 | $ | 1.1 | $ | 1.54 | ||||||||
Discontinued operations | (0.40 | ) | (0.06 | ) | (0.84 | ) | 0.13 | |||||||||
Net income | $ | (0.03 | ) | $ | 0.38 | $ | 0.26 | $ | 1.66 | |||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands): | 12,503 | 13,607 | 12,886 | 14,391 | ||||||||||||
(1) The sum of earnings per share amounts may not equal the totals due to rounding. |
Subsequent_Event_Notes
Subsequent Event (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
17. Subsequent Event | |
On November 4, 2013, we redeemed the remaining $300 million of 4.875% outstanding notes that were scheduled to mature August 2014. Total cash payments, including principal, accrued interest and make-whole payment, were $314 million. In connection with this redemption, we also unwound an interest rate swap. We will recognize a net loss in the fourth quarter of $7 million associated with this redemption. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reconciliation Of E B I T From Segments To Consolidated [Table Text Block] | ' | |||||||||||||||
EBIT | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
North America Mailing | $ | 167,433 | $ | 168,934 | $ | 488,301 | $ | 514,975 | ||||||||
International Mailing | 15,456 | 11,206 | 52,967 | 51,670 | ||||||||||||
Small & Medium Business Solutions | 182,889 | 180,140 | 541,268 | 566,645 | ||||||||||||
Production Mail | 10,620 | 10,125 | 34,239 | 28,439 | ||||||||||||
Presort Services | 20,398 | 19,167 | 65,132 | 82,728 | ||||||||||||
Enterprise Business Solutions | 31,018 | 29,292 | 99,371 | 111,167 | ||||||||||||
Digital Commerce Solutions | 10,196 | 2,971 | 20,134 | 23,674 | ||||||||||||
Total EBIT | 224,103 | 212,403 | 660,773 | 701,486 | ||||||||||||
Reconciling items: | ||||||||||||||||
Interest, net (1) | (46,357 | ) | (45,088 | ) | (145,066 | ) | (142,853 | ) | ||||||||
Unallocated corporate and other expenses | (50,196 | ) | (44,185 | ) | (170,340 | ) | (151,154 | ) | ||||||||
Restructuring charges and asset impairments | (34,909 | ) | — | (53,940 | ) | 980 | ||||||||||
Income from continuing operations before income taxes | $ | 92,641 | $ | 123,130 | $ | 291,427 | $ | 408,459 | ||||||||
(1) Includes financing interest expense, other interest expense and interest income. | ||||||||||||||||
Reconciliation of Revenue From Segments to Consolidated Statements | ' | |||||||||||||||
Revenues | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
North America Mailing | $ | 422,821 | $ | 447,920 | $ | 1,286,085 | $ | 1,362,709 | ||||||||
International Mailing | 142,443 | 141,630 | 448,684 | 449,583 | ||||||||||||
Small & Medium Business Solutions | 565,264 | 589,550 | 1,734,769 | 1,812,292 | ||||||||||||
Production Mail | 116,477 | 114,889 | 360,352 | 337,582 | ||||||||||||
Presort Services | 105,093 | 105,909 | 322,954 | 322,401 | ||||||||||||
Enterprise Business Solutions | 221,570 | 220,798 | 683,306 | 659,983 | ||||||||||||
Digital Commerce Solutions | 151,952 | 139,441 | 420,139 | 427,273 | ||||||||||||
Total revenue | $ | 938,786 | $ | 949,789 | $ | 2,838,214 | $ | 2,899,548 | ||||||||
Finance_Assets_Tables
Finance Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||
Financing Receivables | ' | |||||||||||||||||||
Finance receivables consisted of the following: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,466,556 | $ | 446,810 | $ | 1,913,366 | ||||||||||||||
Unguaranteed residual values | 127,846 | 21,248 | 149,094 | |||||||||||||||||
Unearned income | (299,700 | ) | (100,451 | ) | (400,151 | ) | ||||||||||||||
Allowance for credit losses | (15,326 | ) | (7,823 | ) | (23,149 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,279,376 | 359,784 | 1,639,160 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 389,828 | 51,455 | 441,283 | |||||||||||||||||
Allowance for credit losses | (11,498 | ) | (1,849 | ) | (13,347 | ) | ||||||||||||||
Net investment in loan receivables | 378,330 | 49,606 | 427,936 | |||||||||||||||||
Net investment in finance receivables | $ | 1,657,706 | $ | 409,390 | $ | 2,067,096 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,581,711 | $ | 461,510 | $ | 2,043,221 | ||||||||||||||
Unguaranteed residual values | 148,664 | 21,025 | 169,689 | |||||||||||||||||
Unearned income | (316,030 | ) | (104,258 | ) | (420,288 | ) | ||||||||||||||
Allowance for credit losses | (16,979 | ) | (8,662 | ) | (25,641 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,397,366 | 369,615 | 1,766,981 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 414,960 | 47,293 | 462,253 | |||||||||||||||||
Allowance for credit losses | (12,322 | ) | (2,131 | ) | (14,453 | ) | ||||||||||||||
Net investment in loan receivables | 402,638 | 45,162 | 447,800 | |||||||||||||||||
Net investment in finance receivables | $ | 1,800,004 | $ | 414,777 | $ | 2,214,781 | ||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||||
Activity in the allowance for credit losses for the nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2013 | $ | 16,979 | $ | 8,662 | $ | 12,322 | $ | 2,131 | $ | 40,094 | ||||||||||
Amounts charged to expense | 4,617 | 2,031 | 7,265 | 793 | 14,706 | |||||||||||||||
Accounts written off | (6,270 | ) | (2,870 | ) | (8,089 | ) | (1,075 | ) | (18,304 | ) | ||||||||||
Balance at September 30, 2013 | $ | 15,326 | $ | 7,823 | $ | 11,498 | $ | 1,849 | $ | 36,496 | ||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2012 | $ | 28,661 | $ | 12,039 | $ | 20,272 | $ | 2,458 | $ | 63,430 | ||||||||||
Amounts charged to expense | 1,171 | 1,489 | 4,069 | 703 | 7,432 | |||||||||||||||
Accounts written off | (12,694 | ) | (3,708 | ) | (8,864 | ) | (973 | ) | (26,239 | ) | ||||||||||
Balance at September 30, 2012 | $ | 17,138 | $ | 9,820 | $ | 15,477 | $ | 2,188 | $ | 44,623 | ||||||||||
Past Due Financing Receivables | ' | |||||||||||||||||||
The aging of gross finance receivables at September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,400,998 | $ | 417,881 | $ | 372,330 | $ | 49,330 | $ | 2,240,539 | ||||||||||
> 30 days and < 61 days | 27,467 | 8,845 | 9,233 | 1,276 | 46,821 | |||||||||||||||
> 60 days and < 91 days | 18,255 | 5,346 | 3,544 | 431 | 27,576 | |||||||||||||||
> 90 days and < 121 days | 5,383 | 3,982 | 2,026 | 221 | 11,612 | |||||||||||||||
> 120 days | 14,453 | 10,756 | 2,695 | 197 | 28,101 | |||||||||||||||
Total | $ | 1,466,556 | $ | 446,810 | $ | 389,828 | $ | 51,455 | $ | 2,354,649 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 5,383 | $ | 3,982 | $ | — | $ | — | $ | 9,365 | ||||||||||
Not accruing interest | 14,453 | 10,756 | 4,721 | 418 | 30,348 | |||||||||||||||
Total | $ | 19,836 | $ | 14,738 | $ | 4,721 | $ | 418 | $ | 39,713 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,497,797 | $ | 435,780 | $ | 392,108 | $ | 45,324 | $ | 2,371,009 | ||||||||||
> 30 days and < 61 days | 37,348 | 9,994 | 12,666 | 1,368 | 61,376 | |||||||||||||||
> 60 days and < 91 days | 24,059 | 5,198 | 4,577 | 285 | 34,119 | |||||||||||||||
> 90 days and < 121 days | 6,665 | 3,327 | 2,319 | 179 | 12,490 | |||||||||||||||
> 120 days | 15,842 | 7,211 | 3,290 | 137 | 26,480 | |||||||||||||||
Total | $ | 1,581,711 | $ | 461,510 | $ | 414,960 | $ | 47,293 | $ | 2,505,474 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,665 | $ | 3,327 | $ | — | $ | — | $ | 9,992 | ||||||||||
Not accruing interest | 15,842 | 7,211 | 5,609 | 316 | 28,978 | |||||||||||||||
Total | $ | 22,507 | $ | 10,538 | $ | 5,609 | $ | 316 | $ | 38,970 | ||||||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Low | $ | 1,097,080 | $ | 1,016,413 | ||||||||||||||||
Medium | 260,434 | 450,432 | ||||||||||||||||||
High | 53,569 | 43,658 | ||||||||||||||||||
Not Scored | 55,473 | 71,208 | ||||||||||||||||||
Total | $ | 1,466,556 | $ | 1,581,711 | ||||||||||||||||
Loan receivables | ||||||||||||||||||||
Low | $ | 271,874 | $ | 254,567 | ||||||||||||||||
Medium | 92,579 | 136,069 | ||||||||||||||||||
High | 11,666 | 14,624 | ||||||||||||||||||
Not Scored | 13,709 | 9,700 | ||||||||||||||||||
Total | $ | 389,828 | $ | 414,960 | ||||||||||||||||
Schedule of Components of Leveraged Lease Investments | ' | |||||||||||||||||||
Our investment in leveraged lease assets at September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Rental receivables | $ | 68,918 | $ | 83,254 | ||||||||||||||||
Unguaranteed residual values | 13,644 | 14,177 | ||||||||||||||||||
Principal and interest on non-recourse loans | (41,836 | ) | (55,092 | ) | ||||||||||||||||
Unearned income | (5,868 | ) | (7,793 | ) | ||||||||||||||||
Investment in leveraged leases | 34,858 | 34,546 | ||||||||||||||||||
Less: deferred taxes related to leveraged leases | (16,319 | ) | (19,372 | ) | ||||||||||||||||
Net investment in leveraged leases | $ | 18,539 | $ | 15,174 | ||||||||||||||||
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||
Scheduled maturities of investment securities at September 30, 2013 were as follows: | |||||||||||||||||||
Amortized cost | Estimated fair value | ||||||||||||||||||
Within 1 year | $ | 55,811 | $ | 55,853 | |||||||||||||||
After 1 year through 5 years | 61,774 | 62,635 | |||||||||||||||||
After 5 years through 10 years | 62,694 | 62,301 | |||||||||||||||||
After 10 years | 162,288 | 161,276 | |||||||||||||||||
Total | $ | 342,567 | $ | 342,065 | |||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||
Available-for-sale securities at September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Money market funds / commercial paper | $ | 36,134 | $ | — | $ | (13 | ) | $ | 36,121 | ||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 116,146 | 1,405 | (2,441 | ) | 115,110 | ||||||||||||||
Debt securities - corporate | 31,084 | 915 | (465 | ) | 31,534 | ||||||||||||||
Mortgage-backed / asset-backed securities | 159,203 | 1,855 | (1,758 | ) | 159,300 | ||||||||||||||
Total | $ | 342,567 | $ | 4,175 | $ | (4,677 | ) | $ | 342,065 | ||||||||||
December 31, 2012 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Money market funds / commercial paper | $ | 44,611 | $ | 53 | $ | — | $ | 44,664 | |||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 127,807 | 3,972 | (56 | ) | 131,723 | ||||||||||||||
Debt securities - corporate | 41,095 | 2,851 | (20 | ) | 43,926 | ||||||||||||||
Mortgage-backed / asset-backed securities | 162,180 | 3,340 | (3,145 | ) | 162,375 | ||||||||||||||
Total | $ | 375,693 | $ | 10,216 | $ | (3,221 | ) | $ | 382,688 | ||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | |||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (6,798 | ) | $ | 939 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | |||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2013 | 2012 | ||||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (12,793 | ) | $ | (2,129 | ) | ||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | Location of Gain (Loss) | Gain (Loss) Reclassified | |||||||||||||||||
Recognized in AOCI | (Effective Portion) | from AOCI to Earnings | |||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | (343 | ) | $ | (863 | ) | Revenue | $ | (169 | ) | $ | 456 | |||||||
Cost of sales | 108 | (56 | ) | ||||||||||||||||
$ | (61 | ) | $ | 400 | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain (Loss) | Location of Gain (Loss) | Gain (Loss) Reclassified | |||||||||||||||||
Recognized in AOCI | (Effective Portion) | from AOCI to Earnings | |||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | 457 | $ | (1,672 | ) | Revenue | $ | (922 | ) | $ | 1,230 | ||||||||
Cost of sales | 520 | (129 | ) | ||||||||||||||||
$ | (402 | ) | $ | 1,101 | |||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Derivatives designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | $ | 398 | $ | 78 | |||||||||||||||
Other assets: | |||||||||||||||||||
Interest rate swaps | 1,855 | 10,117 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (584 | ) | (320 | ) | |||||||||||||||
Derivatives not designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | 1,447 | 2,504 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (4,889 | ) | (854 | ) | |||||||||||||||
Total derivative assets | $ | 3,700 | $ | 12,699 | |||||||||||||||
Total derivative liabilities | (5,473 | ) | (1,174 | ) | |||||||||||||||
Total net derivative (liabilities) assets | $ | (1,773 | ) | $ | 11,525 | ||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 194,486 | $ | 147,259 | $ | — | $ | 341,745 | |||||||||||
Equity securities | — | 25,384 | — | 25,384 | |||||||||||||||
Commingled fixed income securities | — | 26,772 | — | 26,772 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 118,071 | 18,049 | — | 136,120 | |||||||||||||||
Debt securities - corporate | — | 31,534 | — | 31,534 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 159,300 | — | 159,300 | |||||||||||||||
Derivatives | |||||||||||||||||||
Interest rate swaps | — | 1,855 | — | 1,855 | |||||||||||||||
Foreign exchange contracts | — | 1,845 | — | 1,845 | |||||||||||||||
Total assets | $ | 312,557 | $ | 411,998 | $ | — | $ | 724,555 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (5,473 | ) | $ | — | $ | (5,473 | ) | |||||||||
Total liabilities | $ | — | $ | (5,473 | ) | $ | — | $ | (5,473 | ) | |||||||||
December 31, 2012 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 581,648 | $ | 34,369 | $ | — | $ | 616,017 | |||||||||||
Equity securities | — | 25,106 | — | 25,106 | |||||||||||||||
Commingled fixed income securities | — | 29,359 | — | 29,359 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 124,221 | 18,908 | — | 143,129 | |||||||||||||||
Debt securities - corporate | — | 43,926 | — | 43,926 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 162,375 | — | 162,375 | |||||||||||||||
Derivatives | |||||||||||||||||||
Interest rate swaps | — | 10,117 | — | 10,117 | |||||||||||||||
Foreign exchange contracts | — | 2,582 | — | 2,582 | |||||||||||||||
Total assets | $ | 705,869 | $ | 326,742 | $ | — | $ | 1,032,611 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (1,174 | ) | $ | — | $ | (1,174 | ) | |||||||||
Total liabilities | $ | — | $ | (1,174 | ) | $ | — | $ | (1,174 | ) | |||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Carrying value | $ | 3,650,590 | $ | 4,017,375 | |||||||||||||||
Fair value | $ | 3,867,130 | $ | 4,200,970 | |||||||||||||||
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
Derivative Gain | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 863 | $ | 1,578 | $ | (2,742 | ) | $ | (5,484 | ) | ||||||||
Nine Months Ended September 30, | |||||||||||||||||||
Derivative Gain | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 3,631 | $ | 8,351 | $ | (10,969 | ) | $ | (25,652 | ) | ||||||||
Restructuring_Charges_and_Asse1
Restructuring Charges and Asset Impairments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||||||
Severance and benefits costs | Pension and | Asset | Other exit | Total | ||||||||||||||||
Retiree | impairments | costs | ||||||||||||||||||
Medical | ||||||||||||||||||||
Balance at January 1, 2013 | $ | 62,540 | $ | — | $ | — | $ | 5,218 | $ | 67,758 | ||||||||||
Expenses, net (1) | 25,705 | 1,964 | 71 | 1,528 | 29,268 | |||||||||||||||
Cash payments | (38,125 | ) | — | — | (3,228 | ) | (41,353 | ) | ||||||||||||
Non-cash charges | — | (1,964 | ) | (71 | ) | — | (2,035 | ) | ||||||||||||
Balance at September 30, 2013 | $ | 50,120 | $ | — | $ | — | $ | 3,518 | $ | 53,638 | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Components | ' | |||||||
Inventories consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials and work in process | $ | 46,663 | $ | 66,221 | ||||
Supplies and service parts | 55,453 | 72,551 | ||||||
Finished products | 58,337 | 68,335 | ||||||
Inventory at FIFO cost | 160,453 | 207,107 | ||||||
Excess of FIFO cost over LIFO cost | (26,187 | ) | (27,429 | ) | ||||
Total inventory, net | $ | 134,266 | $ | 179,678 | ||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Intangible Assets Disclosure | ' | |||||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer relationships | $ | 353,241 | $ | (244,275 | ) | $ | 108,966 | $ | 407,901 | $ | (269,100 | ) | $ | 138,801 | ||||||||||
Supplier relationships | 29,000 | (24,288 | ) | 4,712 | 29,000 | (22,113 | ) | 6,887 | ||||||||||||||||
Software & technology | 166,397 | (153,153 | ) | 13,244 | 169,632 | (151,628 | ) | 18,004 | ||||||||||||||||
Trademarks & trade names | 35,177 | (33,549 | ) | 1,628 | 35,078 | (32,615 | ) | 2,463 | ||||||||||||||||
Non-compete agreements | 7,349 | (7,311 | ) | 38 | 7,471 | (7,412 | ) | 59 | ||||||||||||||||
Total intangible assets | $ | 591,164 | $ | (462,576 | ) | $ | 128,588 | $ | 649,082 | $ | (482,868 | ) | $ | 166,214 | ||||||||||
Amortization Expense In Future Periods | ' | |||||||||||||||||||||||
The future amortization expense for intangible assets as of September 30, 2013 was as follows: | ||||||||||||||||||||||||
Remaining for year ended December 31, 2013 | $ | 8,848 | ||||||||||||||||||||||
Year ended December 31, 2014 | 34,246 | |||||||||||||||||||||||
Year ended December 31, 2015 | 30,288 | |||||||||||||||||||||||
Year ended December 31, 2016 | 22,935 | |||||||||||||||||||||||
Year ended December 31, 2017 | 11,352 | |||||||||||||||||||||||
Thereafter | 20,919 | |||||||||||||||||||||||
Total | $ | 128,588 | ||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
he changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows: | ||||||||||||||||||||||||
Gross value before accumulated impairment | Accumulated impairment | December 31, 2012 | Impairment (2) | Other (1) | September 30, | |||||||||||||||||||
2013 | ||||||||||||||||||||||||
North America Mailing | $ | 355,874 | $ | — | $ | 355,874 | $ | — | $ | 2,439 | $ | 358,313 | ||||||||||||
International Mailing | 183,908 | — | 183,908 | (1,162 | ) | (1,633 | ) | 181,113 | ||||||||||||||||
Small & Medium Business Solutions | 539,782 | — | 539,782 | (1,162 | ) | 806 | 539,426 | |||||||||||||||||
Production Mail | 131,865 | — | 131,865 | — | (15,050 | ) | 116,815 | |||||||||||||||||
Management Services (2) | 488,399 | (84,500 | ) | 403,899 | (100,253 | ) | (1,159 | ) | 302,487 | |||||||||||||||
Presort Services | 259,106 | (63,965 | ) | 195,141 | — | — | 195,141 | |||||||||||||||||
Enterprise Business Solutions | 879,370 | (148,465 | ) | 730,905 | (100,253 | ) | (16,209 | ) | 614,443 | |||||||||||||||
Digital Commerce Solutions | 865,451 | — | 865,451 | — | 12,345 | 877,796 | ||||||||||||||||||
Total | $ | 2,284,603 | $ | (148,465 | ) | $ | 2,136,138 | $ | (101,415 | ) | $ | (3,058 | ) | $ | 2,031,665 | |||||||||
Reclassified to Assets held for sale (2) | (302,487 | ) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 1,729,178 | ||||||||||||||||||||||
-1 | Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments |
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
Debt consisted of the following: | |||||||||
September 30, | 31-Dec-12 | ||||||||
2013 | |||||||||
Term loans | $ | 230,000 | $ | 230,000 | |||||
3.88% | notes due 2013 | — | 375,000 | ||||||
4.88% | notes due 2014 (1), (2) | 299,570 | 450,000 | ||||||
5.00% | notes due 2015 (1) | 274,879 | 400,000 | ||||||
4.75% | notes due 2016 (1) | 370,914 | 500,000 | ||||||
5.75% | notes due 2017 | 500,000 | 500,000 | ||||||
5.60% | notes due 2018 | 250,000 | 250,000 | ||||||
4.75% | notes due 2018 | 350,000 | 350,000 | ||||||
6.25% | notes due 2019 | 300,000 | 300,000 | ||||||
5.25% | notes due 2022 | 110,000 | 110,000 | ||||||
5.25% | notes due 2037 | 500,000 | 500,000 | ||||||
6.70% | notes due 2043 (3) | 425,000 | — | ||||||
Other (4) | 40,227 | 52,375 | |||||||
Total debt | 3,650,590 | 4,017,375 | |||||||
Current portion | 299,570 | 375,000 | |||||||
Long-term debt | $ | 3,351,020 | $ | 3,642,375 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred | Preference | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | Preferred | Preference | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||
stock | stock | stock | stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4 | $ | 648 | $ | 323,338 | $ | 223,847 | $ | 4,744,802 | $ | (681,213 | ) | $ | (4,500,795 | ) | $ | 110,631 | Balance at January 1, 2012 | $ | 4 | $ | 659 | $ | 323,338 | $ | 240,584 | $ | 4,600,217 | $ | (661,645 | ) | $ | (4,542,143 | ) | $ | (38,986 | ) | ||||||||||||||||||||||||||
Net income | — | — | — | — | 52,746 | — | — | 52,746 | Net income | — | — | — | — | 334,826 | — | — | 334,826 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | (15,380 | ) | — | (15,380 | ) | Other comprehensive income | — | — | — | — | — | 35,777 | — | 35,777 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common ($0.75 per share) | — | — | — | — | (150,920 | ) | — | — | (150,920 | ) | Common ($1.125 per share) | — | — | — | — | (225,244 | ) | — | — | (225,244 | ) | |||||||||||||||||||||||||||||||||||||||||||
Preference | — | — | — | — | (35 | ) | — | — | (35 | ) | Preference | — | — | — | — | (38 | ) | — | — | (38 | ) | |||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | — | — | (33,412 | ) | — | — | 35,546 | 2,134 | Issuances of common stock | — | — | — | (31,306 | ) | — | — | 36,138 | 4,832 | |||||||||||||||||||||||||||||||||||||||||||||
Conversions to common stock | — | (40 | ) | — | (853 | ) | — | — | 893 | — | Conversions to common stock | — | (6 | ) | — | (124 | ) | — | — | 130 | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 12,061 | — | — | — | 12,061 | Stock-based compensation expense | — | — | — | 13,466 | — | — | — | 13,466 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 4 | $ | 608 | $ | 323,338 | $ | 201,643 | $ | 4,646,593 | $ | (696,593 | ) | $ | (4,464,356 | ) | $ | 11,237 | Balance at September 30, 2012 | $ | 4 | $ | 653 | $ | 323,338 | $ | 222,620 | $ | 4,709,761 | $ | (625,868 | ) | $ | (4,505,875 | ) | $ | 124,633 | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
AOCI Compnents [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Comprehensive Income | ' | |||||||||||||||||||
Changes in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||
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 at January 1, 2013 | $ | (7,777 | ) | $ | 4,513 | $ | (759,199 | ) | $ | 81,250 | $ | (681,213 | ) | |||||||
Other comprehensive income (loss) before reclassifications (a) | (211 | ) | (5,273 | ) | — | (36,805 | ) | (42,289 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b), (c) | 1,173 | 606 | 28,943 | (3,813 | ) | 26,909 | ||||||||||||||
Net current period other comprehensive income | 962 | (4,667 | ) | 28,943 | (40,618 | ) | (15,380 | ) | ||||||||||||
Balance at September 30, 2013 | $ | (6,815 | ) | $ | (154 | ) | $ | (730,256 | ) | $ | 40,632 | $ | (696,593 | ) | ||||||
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 at January 1, 2012 | $ | (8,438 | ) | $ | 4,387 | $ | (741,546 | ) | $ | 83,952 | $ | (661,645 | ) | |||||||
Other comprehensive income (loss) before reclassifications (a) | 323 | 641 | — | (883 | ) | 81 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 255 | 326 | 35,115 | — | 35,696 | |||||||||||||||
Net current period other comprehensive income | 578 | 967 | 35,115 | (883 | ) | 35,777 | ||||||||||||||
Balance at September 30, 2012 | $ | (7,860 | ) | $ | 5,354 | $ | (706,431 | ) | $ | 83,069 | $ | (625,868 | ) | |||||||
(a) Â Â Â Â Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | ||||||||||||||||||||
(b) Â Â Â Â See table above for additional details of these reclassifications. | ||||||||||||||||||||
(c) | Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income. | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI (a) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||||||
Revenue | $ | (169 | ) | $ | 456 | $ | (922 | ) | $ | 1,230 | ||||||||||
Cost of sales | 108 | (56 | ) | 520 | (129 | ) | ||||||||||||||
Interest expense | (507 | ) | (507 | ) | (1,521 | ) | (1,521 | ) | ||||||||||||
Total before tax | (568 | ) | (107 | ) | (1,923 | ) | (420 | ) | ||||||||||||
Tax benefit | 222 | 43 | 750 | 165 | ||||||||||||||||
Net of tax | $ | (346 | ) | $ | (64 | ) | $ | (1,173 | ) | $ | (255 | ) | ||||||||
Unrealized gains (losses) on available for sale securities | ||||||||||||||||||||
Interest income | $ | 1,640 | $ | (41 | ) | $ | (962 | ) | $ | (517 | ) | |||||||||
Tax benefit | (607 | ) | 15 | 356 | 191 | |||||||||||||||
Net of tax | $ | 1,033 | $ | (26 | ) | $ | (606 | ) | $ | (326 | ) | |||||||||
Pension and Postretirement Benefit Plans (b) | ||||||||||||||||||||
Transition credit | $ | 2 | $ | 2 | $ | 6 | $ | 6 | ||||||||||||
Prior service (costs) credit | (163 | ) | 295 | (524 | ) | 884 | ||||||||||||||
Actuarial losses | (12,136 | ) | (18,852 | ) | (44,038 | ) | (56,376 | ) | ||||||||||||
Total before tax | (12,297 | ) | (18,555 | ) | (44,556 | ) | (55,486 | ) | ||||||||||||
Tax benefit | 4,347 | 6,404 | 15,613 | 20,371 | ||||||||||||||||
Net of tax | $ | (7,950 | ) | $ | (12,151 | ) | $ | (28,943 | ) | $ | (35,115 | ) | ||||||||
(a) Â Â Â Â Amounts in parentheses indicate debits (reductions) to income. | ||||||||||||||||||||
(b) | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details). |
Pensions_and_Other_Benefit_Pro1
Pensions and Other Benefit Programs (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Pension And Other Postretirement Benefits Disclosure (Tables) [Abstract] | ' | |||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | |||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 3,597 | $ | 4,735 | $ | 968 | $ | 1,774 | ||||||||
Interest cost | 18,264 | 20,260 | 1,870 | 6,909 | ||||||||||||
Expected return on plan assets | (26,781 | ) | (30,406 | ) | (3,266 | ) | (8,069 | ) | ||||||||
Amortization of transition credit | — | — | (2 | ) | (2 | ) | ||||||||||
Amortization of prior service cost | 95 | 200 | 28 | 28 | ||||||||||||
Amortization of net actuarial loss | 7,690 | 13,240 | 2,873 | 3,558 | ||||||||||||
Settlement | 145 | — | — | 192 | ||||||||||||
Special termination benefits | — | — | 104 | — | ||||||||||||
Net periodic benefit cost | $ | 3,010 | $ | 8,029 | $ | 2,575 | $ | 4,390 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 10,890 | $ | 14,204 | $ | 5,280 | $ | 5,805 | ||||||||
Interest cost | 55,169 | 60,780 | 25,246 | 20,766 | ||||||||||||
Expected return on plan assets | (80,908 | ) | (91,218 | ) | (31,187 | ) | (24,133 | ) | ||||||||
Amortization of transition credit | — | — | (6 | ) | (6 | ) | ||||||||||
Amortization of prior service cost | 318 | 602 | 84 | 83 | ||||||||||||
Amortization of net actuarial loss | 26,234 | 39,719 | 11,511 | 10,546 | ||||||||||||
Settlement | 1,561 | — | — | 442 | ||||||||||||
Special termination benefits | 548 | — | 104 | — | ||||||||||||
Curtailment | 814 | — | — | — | ||||||||||||
Net periodic benefit cost | $ | 14,626 | $ | 24,087 | $ | 11,032 | $ | 13,503 | ||||||||
Schedule of Non Pension Postretirement Benefit Plans Disclosures | ' | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 935 | $ | 801 | $ | 2,966 | $ | 2,560 | ||||||||
Interest cost | 2,186 | 2,896 | 7,210 | 8,685 | ||||||||||||
Amortization of prior service cost (credit) | 40 | (523 | ) | 122 | (1,569 | ) | ||||||||||
Amortization of net actuarial loss | 1,573 | 2,054 | 6,293 | 6,111 | ||||||||||||
Net periodic benefit cost | $ | 4,734 | $ | 5,228 | $ | 16,591 | $ | 15,787 | ||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share (Tables) [Abstract] | ' | |||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to common stockholders: | ||||||||||||||||
Net income from continuing operations | $ | 76,677 | $ | 87,946 | $ | 222,115 | $ | 309,569 | ||||||||
Income (loss) from discontinued operations | (82,204 | ) | (11,413 | ) | (169,369 | ) | 25,257 | |||||||||
Net income - Pitney Bowes Inc. (numerator for diluted EPS) | (5,527 | ) | 76,533 | 52,746 | 334,826 | |||||||||||
Less: Preference stock dividend | (12 | ) | (12 | ) | (35 | ) | (38 | ) | ||||||||
Income attributable to common stockholders (numerator for basic EPS) | $ | (5,539 | ) | $ | 76,521 | $ | 52,711 | $ | 334,788 | |||||||
Denominator (in thousands): | ||||||||||||||||
Weighted-average shares used in basic EPS | 201,827 | 200,593 | 201,490 | 200,266 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Preferred stock | 2 | 2 | 2 | 2 | ||||||||||||
Preference stock | 376 | 399 | 386 | 399 | ||||||||||||
Stock plans | 935 | 608 | 712 | 458 | ||||||||||||
Weighted-average shares used in diluted EPS | 203,140 | 201,602 | 202,590 | 201,125 | ||||||||||||
Basic earnings per share (1): | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.44 | $ | 1.1 | $ | 1.55 | ||||||||
Discontinued operations | (0.41 | ) | (0.06 | ) | (0.84 | ) | 0.13 | |||||||||
Net income | $ | (0.03 | ) | $ | 0.38 | $ | 0.26 | $ | 1.67 | |||||||
Diluted earnings per share (1): | ||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.44 | $ | 1.1 | $ | 1.54 | ||||||||
Discontinued operations | (0.40 | ) | (0.06 | ) | (0.84 | ) | 0.13 | |||||||||
Net income | $ | (0.03 | ) | $ | 0.38 | $ | 0.26 | $ | 1.66 | |||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands): | 12,503 | 13,607 | 12,886 | 14,391 | ||||||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation Description of Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Prior Period Reclassification Adjustment - Revenue | ($5) | ($13) |
Prior Period Reclassification Adjustment - Expense | 6 | 17 |
Prior Period Reclassification Adjustment | ' | $35 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | $938,786 | $949,789 | $2,838,214 | $2,899,548 | ' | ' |
EBIT | 224,103 | 212,403 | 660,773 | 701,486 | ' | ' |
Reconciling items: | ' | ' | ' | ' | ' | ' |
Interest, net | -46,357 | -45,088 | -145,066 | -142,853 | ' | ' |
Unallocated corporate and other expenses | -50,196 | -44,185 | -170,340 | -151,154 | ' | ' |
Restructuring charges and asset impariments | -34,909 | 0 | -53,940 | 980 | ' | ' |
Goodwill, Impairment Loss | ' | ' | -101,415 | -18,315 | ' | ' |
Other Income | 0 | 0 | -25,121 | -1,138 | ' | ' |
Income from continuing operations before income taxes | 92,641 | 123,130 | 291,427 | 408,459 | ' | ' |
Cash and cash equivalents | 759,636 | 424,789 | 759,636 | 424,789 | 913,276 | 856,238 |
Short-term investments | 20,471 | ' | 20,471 | ' | 36,611 | ' |
Assets held for sale | 550,641 | ' | 550,641 | ' | 0 | ' |
Small & Medium Business Solutions | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 565,264 | 589,550 | 1,734,769 | 1,812,292 | ' | ' |
EBIT | 182,889 | 180,140 | 541,268 | 566,645 | ' | ' |
North America Mailing | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 422,821 | 447,920 | 1,286,085 | 1,362,709 | ' | ' |
EBIT | 167,433 | 168,934 | 488,301 | 514,975 | ' | ' |
International Mailing | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 142,443 | 141,630 | 448,684 | 449,583 | ' | ' |
EBIT | 15,456 | 11,206 | 52,967 | 51,670 | ' | ' |
Enterprise Business Solutions | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 221,570 | 220,798 | 683,306 | 659,983 | ' | ' |
EBIT | 31,018 | 29,292 | 99,371 | 111,167 | ' | ' |
Production Mail | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 116,477 | 114,889 | 360,352 | 337,582 | ' | ' |
EBIT | 10,620 | 10,125 | 34,239 | 28,439 | ' | ' |
Mail Services | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 105,093 | 105,909 | 322,954 | 322,401 | ' | ' |
EBIT | 20,398 | 19,167 | 65,132 | 82,728 | ' | ' |
Digital Commerce Solutions [Member] | ' | ' | ' | ' | ' | ' |
Segment reporting information profit (loss) | ' | ' | ' | ' | ' | ' |
Revenues | 151,952 | 139,441 | 420,139 | 427,273 | ' | ' |
EBIT | $10,196 | $2,971 | $20,134 | $23,674 | ' | ' |
Finance_Assets_Details
Finance Assets (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | $1,913,366 | ' | $2,043,221 |
Unguaranteed residual values | 149,094 | ' | 169,689 |
Unearned income | -400,151 | ' | -420,288 |
Allowance for credit losses | -23,149 | ' | -25,641 |
Net investment in sales-type lease receivables | 1,639,160 | ' | 1,766,981 |
Loan Receivables | ' | ' | ' |
Loan receivables | 441,283 | ' | 462,253 |
Allowance for credit losses | -13,347 | ' | -14,453 |
Net investment in loan receivables | 427,936 | ' | 447,800 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 40,094 | 63,430 | ' |
Amounts charged to expense | 14,706 | 7,432 | ' |
Accounts written off | -18,304 | -26,239 | ' |
Balance Closing | 36,496 | 44,623 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days past due | 2,240,539 | ' | 2,371,009 |
Greater than 30 days and Less than 61 days | 46,821 | ' | 61,376 |
Greater than 60 days and Less than 91 days | 27,576 | ' | 34,119 |
Greater than 90 days and Less than 121 days | 11,612 | ' | 12,490 |
Greater than 120 days | 28,101 | ' | 26,480 |
Notes, Loans and Financing Receivable, Gross | 2,354,649 | ' | 2,505,474 |
Still accruing interest | 9,365 | ' | 9,992 |
Not accruing interest | 30,348 | ' | 28,978 |
Total | 39,713 | ' | 38,970 |
Loans and Leases Receivable, Net Reported Amount | 2,067,096 | ' | 2,214,781 |
Risk Level, Low | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Approximate percentage of portfolio | 30.00% | ' | ' |
Risk Level, Medium | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Approximate percentage of portfolio | 40.00% | ' | ' |
Risk Level, High | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Approximate percentage of portfolio | 30.00% | ' | ' |
North America | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Net investment in sales-type lease receivables | 1,279,376 | ' | 1,397,366 |
Loan Receivables | ' | ' | ' |
Net investment in loan receivables | 378,330 | ' | 402,638 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loans and Leases Receivable, Net Reported Amount | 1,657,706 | ' | 1,800,004 |
International | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Net investment in sales-type lease receivables | 359,784 | ' | 369,615 |
Loan Receivables | ' | ' | ' |
Net investment in loan receivables | 49,606 | ' | 45,162 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loans and Leases Receivable, Net Reported Amount | 409,390 | ' | 414,777 |
Sales-type lease receivables | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 1,466,556 | ' | 1,581,711 |
Sales-type lease receivables | Risk Level, Low | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 1,097,080 | ' | 1,016,413 |
Sales-type lease receivables | Risk Level, Medium | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 260,434 | ' | 450,432 |
Sales-type lease receivables | Risk Level, High | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 53,569 | ' | 43,658 |
Sales-type lease receivables | Not Scored | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 55,473 | ' | 71,208 |
Sales-type lease receivables | North America | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 1,466,556 | ' | 1,581,711 |
Unguaranteed residual values | 127,846 | ' | 148,664 |
Unearned income | -299,700 | ' | -316,030 |
Allowance for credit losses | -15,326 | ' | -16,979 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 16,979 | 28,661 | ' |
Amounts charged to expense | 4,617 | 1,171 | ' |
Accounts written off | -6,270 | -12,694 | ' |
Balance Closing | 15,326 | 17,138 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days past due | 1,400,998 | ' | 1,497,797 |
Greater than 30 days and Less than 61 days | 27,467 | ' | 37,348 |
Greater than 60 days and Less than 91 days | 18,255 | ' | 24,059 |
Greater than 90 days and Less than 121 days | 5,383 | ' | 6,665 |
Greater than 120 days | 14,453 | ' | 15,842 |
Still accruing interest | 5,383 | ' | 6,665 |
Not accruing interest | 14,453 | ' | 15,842 |
Total | 19,836 | ' | 22,507 |
Sales-type lease receivables | International | ' | ' | ' |
Sales-type Lease Receivables | ' | ' | ' |
Gross finance receivables | 446,810 | ' | 461,510 |
Unguaranteed residual values | 21,248 | ' | 21,025 |
Unearned income | -100,451 | ' | -104,258 |
Allowance for credit losses | -7,823 | ' | -8,662 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 8,662 | 12,039 | ' |
Amounts charged to expense | 2,031 | 1,489 | ' |
Accounts written off | -2,870 | -3,708 | ' |
Balance Closing | 7,823 | 9,820 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days past due | 417,881 | ' | 435,780 |
Greater than 30 days and Less than 61 days | 8,845 | ' | 9,994 |
Greater than 60 days and Less than 91 days | 5,346 | ' | 5,198 |
Greater than 90 days and Less than 121 days | 3,982 | ' | 3,327 |
Greater than 120 days | 10,756 | ' | 7,211 |
Still accruing interest | 3,982 | ' | 3,327 |
Not accruing interest | 10,756 | ' | 7,211 |
Total | 14,738 | ' | 10,538 |
Loan receivables | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 389,828 | ' | 414,960 |
Loan receivables | Risk Level, Low | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 271,874 | ' | 254,567 |
Loan receivables | Risk Level, Medium | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 92,579 | ' | 136,069 |
Loan receivables | Risk Level, High | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 11,666 | ' | 14,624 |
Loan receivables | Not Scored | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 13,709 | ' | 9,700 |
Loan receivables | North America | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 389,828 | ' | 414,960 |
Allowance for credit losses | -11,498 | ' | -12,322 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 12,322 | 20,272 | ' |
Amounts charged to expense | 7,265 | 4,069 | ' |
Accounts written off | -8,089 | -8,864 | ' |
Balance Closing | 11,498 | 15,477 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days past due | 372,330 | ' | 392,108 |
Greater than 30 days and Less than 61 days | 9,233 | ' | 12,666 |
Greater than 60 days and Less than 91 days | 3,544 | ' | 4,577 |
Greater than 90 days and Less than 121 days | 2,026 | ' | 2,319 |
Greater than 120 days | 2,695 | ' | 3,290 |
Still accruing interest | 0 | ' | 0 |
Not accruing interest | 4,721 | ' | 5,609 |
Total | 4,721 | ' | 5,609 |
Loan receivables | International | ' | ' | ' |
Loan Receivables | ' | ' | ' |
Loan receivables | 51,455 | ' | 47,293 |
Allowance for credit losses | -1,849 | ' | -2,131 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 2,131 | 2,458 | ' |
Amounts charged to expense | 793 | 703 | ' |
Accounts written off | -1,075 | -973 | ' |
Balance Closing | 1,849 | 2,188 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days past due | 49,330 | ' | 45,324 |
Greater than 30 days and Less than 61 days | 1,276 | ' | 1,368 |
Greater than 60 days and Less than 91 days | 431 | ' | 285 |
Greater than 90 days and Less than 121 days | 221 | ' | 179 |
Greater than 120 days | 197 | ' | 137 |
Still accruing interest | 0 | ' | 0 |
Not accruing interest | 418 | ' | 316 |
Total | $418 | ' | $316 |
Finance_Assets_Finance_Assets_
Finance Assets Finance Assets 2 (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Leveraged Leases [Line Items] | ' | ' | ' |
Rental receivables | $68,918 | ' | $83,254 |
Unguaranteed residual values | 13,644 | ' | 14,177 |
Principal and interest on non-recourse loans | -41,836 | ' | -55,092 |
Unearned income | -5,868 | ' | -7,793 |
Investment in leveraged leases | 34,858 | ' | 34,546 |
Less: Deferred taxes related to leveraged leases | -16,319 | ' | -19,372 |
Net investment in leveraged leases | 18,539 | ' | 15,174 |
Gain on sale of leveraged lease assets, net of tax | $0 | $12,886 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||
Proceeds from Divestiture of Businesses | ' | ' | $2,627,000 | $0 | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Revenue | 206,529,000 | 265,887,000 | 700,058,000 | 817,604,000 | ' | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | -19,891,000 | ' | -123,927,000 | ' | ' | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 18,930,000 | ' | 15,017,000 | ' | ' | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | -961,000 | -15,516,000 | -108,910,000 | 14,334,000 | ' | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 81,243,000 | -4,103,000 | 60,459,000 | -10,923,000 | ' | ||
Income (loss) from discontinued operations | -82,204,000 | -11,413,000 | -169,369,000 | 25,257,000 | ' | ||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' | ' | ' | ||
Accounts receivables | 145,955,000 | ' | 145,955,000 | ' | ' | ||
Inventories | 1,595,000 | ' | 1,595,000 | ' | ' | ||
Other current assets and prepayments | 11,948,000 | ' | 11,948,000 | ' | ' | ||
Total current assets | 159,498,000 | ' | 159,498,000 | ' | ' | ||
Property, plant and equipment, net | 77,001,000 | [1] | ' | 77,001,000 | [1] | ' | ' |
Goodwill | 1,729,178,000 | ' | 1,729,178,000 | ' | 2,136,138,000 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets, Net | 7,193,000 | ' | 7,193,000 | ' | ' | ||
Other assets | 4,462,000 | ' | 4,462,000 | ' | ' | ||
Assets held for sale | 550,641,000 | ' | 550,641,000 | ' | 0 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' | ' | ' | ||
Accounts payable and acrued liabilities | 77,639,000 | ' | 77,639,000 | ' | ' | ||
Advance billings | 9,862,000 | ' | 9,862,000 | ' | ' | ||
Total current liabilities | 87,501,000 | ' | 87,501,000 | ' | ' | ||
Other non current liabilities | 30,676,000 | ' | 30,676,000 | ' | ' | ||
Liabilities related to assets held for sale | 118,177,000 | ' | 118,177,000 | ' | 0 | ||
Management Services | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Revenue | 194,511,000 | 220,887,000 | 639,237,000 | 679,080,000 | ' | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | -14,438,000 | ' | -116,018,000 | ' | ' | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 13,269,000 | ' | 13,269,000 | ' | ' | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | -1,169,000 | 14,491,000 | -102,749,000 | 47,015,000 | ' | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 81,084,000 | 7,210,000 | 61,679,000 | 20,589,000 | ' | ||
Income (loss) from discontinued operations | -82,253,000 | 7,281,000 | -164,428,000 | 26,426,000 | ' | ||
Mail Services - International | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Revenue | 4,000 | 32,461,000 | 23,036,000 | 100,443,000 | ' | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | -1,072,000 | ' | -3,050,000 | ' | ' | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,196,000 | ' | -2,717,000 | ' | ' | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 124,000 | -30,086,000 | -5,767,000 | -34,051,000 | ' | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 168,000 | -11,335,000 | -1,076,000 | -12,563,000 | ' | ||
Income (loss) from discontinued operations | -44,000 | -18,751,000 | -4,691,000 | -21,488,000 | ' | ||
Nordic Furniture Business [Member] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Revenue | 12,014,000 | 12,539,000 | 37,785,000 | 38,081,000 | ' | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | -4,381,000 | ' | -4,859,000 | ' | ' | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 4,465,000 | ' | 4,465,000 | ' | ' | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 84,000 | 79,000 | -394,000 | 1,370,000 | ' | ||
Discontinued Operation, Tax Effect of Discontinued Operation | -9,000 | 22,000 | -144,000 | 383,000 | ' | ||
Income (loss) from discontinued operations | 93,000 | 57,000 | -250,000 | 987,000 | ' | ||
Management Services - International | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | 20,000,000 | ' | 36,000,000 | ' | ' | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' | ' | ' | ||
Impairment charge | 15,000,000 | ' | ' | ' | ' | ||
Goodwill impairment charge | 100,000,000 | ' | ' | ' | ' | ||
Capital Services | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Revenue | ' | ' | ' | 0 | ' | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | ' | ' | ' | 0 | ' | ||
Discontinued Operation, Tax Effect of Discontinued Operation | ' | ' | ' | -19,332,000 | ' | ||
Income (loss) from discontinued operations | ' | ' | ' | 19,332,000 | ' | ||
Management Services - North America | ' | ' | ' | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||
Proceeds from Divestiture of Businesses | 392,000,000 | ' | ' | ' | ' | ||
Management Services | ' | ' | ' | ' | ' | ||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' | ' | ' | ' | ||
Goodwill | $302,487,000 | ' | $302,487,000 | ' | $403,899,000 | ||
[1] | lso includes the carrying value of our corporate headquarters building and certain surrounding parcels of land. See Note 6. |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivative Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | $1,000,000 | $1,000,000 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 312,557,000 | ' |
Liabilities: | 0 | ' |
Money market funds / commercial paper | ' | 581,648,000 |
Equity securities | ' | 0 |
Commingled fixed income securities | ' | 0 |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | 124,221,000 |
Debt securities - corporate | ' | 0 |
Mortgage-back / asset-back securities | ' | 0 |
Interest rate swaps | ' | 0 |
Foreign exchange contracts | ' | 0 |
Total assets | ' | 705,869,000 |
Foreign exchange contracts | ' | 0 |
Total liabilities | ' | 0 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 411,998,000 | ' |
Liabilities: | -5,473,000 | ' |
Money market funds / commercial paper | ' | 34,369,000 |
Equity securities | ' | 25,106,000 |
Commingled fixed income securities | ' | 29,359,000 |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | 18,908,000 |
Debt securities - corporate | ' | 43,926,000 |
Mortgage-back / asset-back securities | ' | 162,375,000 |
Interest rate swaps | ' | 10,117,000 |
Foreign exchange contracts | ' | 2,582,000 |
Total assets | ' | 326,742,000 |
Foreign exchange contracts | ' | -1,174,000 |
Total liabilities | ' | -1,174,000 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Liabilities: | 0 | ' |
Money market funds / commercial paper | ' | 0 |
Equity securities | ' | 0 |
Commingled fixed income securities | ' | 0 |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | 0 |
Debt securities - corporate | ' | 0 |
Mortgage-back / asset-back securities | ' | 0 |
Interest rate swaps | ' | 0 |
Foreign exchange contracts | ' | 0 |
Total assets | ' | 0 |
Foreign exchange contracts | ' | 0 |
Total liabilities | ' | 0 |
Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 724,555,000 | ' |
Liabilities: | -5,473,000 | ' |
Money market funds / commercial paper | ' | 616,017,000 |
Equity securities | ' | 25,106,000 |
Commingled fixed income securities | ' | 29,359,000 |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | 143,129,000 |
Debt securities - corporate | ' | 43,926,000 |
Mortgage-back / asset-back securities | ' | 162,375,000 |
Interest rate swaps | ' | 10,117,000 |
Foreign exchange contracts | ' | 2,582,000 |
Total assets | ' | 1,032,611,000 |
Foreign exchange contracts | ' | -1,174,000 |
Total liabilities | ' | -1,174,000 |
Carrying value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | -3,650,590,000 | -4,017,375,000 |
Fair value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | -3,867,130,000 | -4,200,970,000 |
Money market funds / commercial paper | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 194,486,000 | ' |
Money market funds / commercial paper | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 147,259,000 | ' |
Money market funds / commercial paper | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Money market funds / commercial paper | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 341,745,000 | ' |
Equity securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Equity securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 25,384,000 | ' |
Equity securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Equity securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 25,384,000 | ' |
Commingled fixed income securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Commingled fixed income securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 26,772,000 | ' |
Commingled fixed income securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Commingled fixed income securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 26,772,000 | ' |
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 118,071,000 | ' |
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 18,049,000 | ' |
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Debt securities - U.S. and foreign governments, agencies and municipalities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 136,120,000 | ' |
Debt securities - corporate | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Debt securities - corporate | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 31,534,000 | ' |
Debt securities - corporate | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Debt securities - corporate | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 31,534,000 | ' |
Mortgage-backed / asset-backed securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Mortgage-backed / asset-backed securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 159,300,000 | ' |
Mortgage-backed / asset-backed securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Mortgage-backed / asset-backed securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 159,300,000 | ' |
Interest rate swaps | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Interest rate swaps | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 1,855,000 | ' |
Interest rate swaps | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Interest rate swaps | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 1,855,000 | ' |
Foreign exchange contracts | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Liabilities: | 0 | ' |
Foreign exchange contracts | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 1,845,000 | ' |
Liabilities: | -5,473,000 | ' |
Foreign exchange contracts | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | ' |
Liabilities: | 0 | ' |
Foreign exchange contracts | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 1,845,000 | ' |
Liabilities: | ($5,473,000) | ' |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivative Instruments 2 (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Other current assets and prepayments: Foreign exchange contracts | $398,000 | ' | $398,000 | ' | $78,000 |
Other assets: Interest rate swaps | 1,855,000 | ' | 1,855,000 | ' | 10,117,000 |
Accounts payable and accrued liabilities: Foreign exchange contracts | -584,000 | ' | -584,000 | ' | -320,000 |
Other current assets and prepayments: Foreign exchange contracts | 1,447,000 | ' | 1,447,000 | ' | 2,504,000 |
Accounts payable and accrued liabilities: Foreign exchange contracts | -4,889,000 | ' | -4,889,000 | ' | -854,000 |
Total derivative assets | 3,700,000 | ' | 3,700,000 | ' | 12,699,000 |
Total derivative liabilities | -5,473,000 | ' | -5,473,000 | ' | -1,174,000 |
Total net derivative assets | -1,773,000 | ' | -1,773,000 | ' | 11,525,000 |
Derivative Gain Recognized in Earnings | 863,000 | 1,578,000 | 3,631,000 | 8,351,000 | ' |
Hedged Item Expense Recognized in Earnings | -2,742,000 | -5,484,000 | -10,969,000 | -25,652,000 | ' |
Total notional amount of outstanding contracts in cash flow hedging relationships | 29,000,000 | ' | 29,000,000 | ' | 25,000,000 |
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Foreign exchange contracts | -343,000 | -863,000 | 457,000 | -1,672,000 | ' |
Derivative gain (loss) reclassified from AOCI to income for hedges recorded to revenue (effective portion) | -169,000 | 456,000 | -922,000 | 1,230,000 | ' |
Derivative gain (loss) reclassified from AOCI to income for hedges recorded to cost of sales (effective portion) | 108,000 | -56,000 | 520,000 | -129,000 | ' |
Derivative gain (loss) reclassified from AOCI to income for hedges (effective portion) | -61,000 | 400,000 | -402,000 | 1,101,000 | ' |
Derivative gain (loss) recognized in income | -6,798,000 | 939,000 | -12,793,000 | -2,129,000 | ' |
Amount of collateral that would be required to be posted if our long-term senior unsecured debt ratings was to have fallen below BB-/Ba3 | 4,000,000 | ' | 4,000,000 | ' | ' |
Foreign Exchange Contract Intercompany | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Foreign Currency Derivative Liabilities at Fair Value | $3,000,000 | ' | $3,000,000 | ' | $2,000,000 |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivative Instruments Fair Value Measurements and Derivative Instruments Available For Sale Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $342,567 | $375,693 |
Gross unrealized gains | 4,175 | 10,216 |
Gross unrealized losses | -4,677 | -3,221 |
Estimated fair value | 342,065 | 382,688 |
Amortized cost - Within 1 year | 55,811 | ' |
Estimated fair value - Within 1 year | 55,853 | ' |
Amortized cost - After 1 year through 5 years | 61,774 | ' |
Estimated fair value - After 1 year through 5 years | 62,635 | ' |
Amortized cost - After 5 years through 10 years | 62,694 | ' |
Estimated fair value - After 5 years through 10 years | 62,301 | ' |
Amortized cost - After 10 years | 162,288 | ' |
Estimated fair value - After 10 years | 161,276 | ' |
Amortized cost - Total | 342,567 | ' |
Estimated fair value - Total | 342,065 | ' |
Money market funds / commercial paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 36,134 | 44,611 |
Gross unrealized gains | 0 | 53 |
Gross unrealized losses | -13 | 0 |
Estimated fair value | 36,121 | 44,664 |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 116,146 | 127,807 |
Gross unrealized gains | 1,405 | 3,972 |
Gross unrealized losses | -2,441 | -56 |
Estimated fair value | 115,110 | 131,723 |
Debt securities - corporate | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 31,084 | 41,095 |
Gross unrealized gains | 915 | 2,851 |
Gross unrealized losses | -465 | -20 |
Estimated fair value | 31,534 | 43,926 |
Mortgage-backed / asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 159,203 | 162,180 |
Gross unrealized gains | 1,855 | 3,340 |
Gross unrealized losses | -1,758 | -3,145 |
Estimated fair value | $159,300 | $162,375 |
Restructuring_Charges_and_Asse2
Restructuring Charges and Asset Impairments (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Restructuring and Related Cost [Line Items] | ' | ' |
Asset Impairment Charges | $26,000,000 | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | ' | 67,758,000 |
Expenses, net | ' | 29,268,000 |
Cash payments | ' | -41,353,000 |
Non-cash charges | ' | -2,035,000 |
Balance Ending | 53,638,000 | 53,638,000 |
Restructuring Charges | ' | 28,000,000 |
Restructuring Reserve, Accrual Adjustment | 6,000,000 | ' |
Severance and benefits costs | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | ' | 62,540,000 |
Expenses, net | ' | 25,705,000 |
Cash payments | ' | -38,125,000 |
Non-cash charges | ' | 0 |
Balance Ending | 50,120,000 | 50,120,000 |
Pension and Retiree Medical | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | ' | 0 |
Expenses, net | ' | 1,964,000 |
Cash payments | ' | 0 |
Non-cash charges | ' | -1,964,000 |
Balance Ending | 0 | 0 |
Assets Impairments [Member] | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | ' | 0 |
Expenses, net | ' | 71,000 |
Cash payments | ' | 0 |
Non-cash charges | ' | -71,000 |
Balance Ending | 0 | 0 |
Other exit costs | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | ' | 5,218,000 |
Expenses, net | ' | 1,528,000 |
Cash payments | ' | -3,228,000 |
Non-cash charges | ' | 0 |
Balance Ending | 3,518,000 | 3,518,000 |
Maximum | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Restructuring and Related Cost, Expected Cost | 125,000,000 | ' |
Minimum | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Restructuring and Related Cost, Expected Cost | $75,000,000 | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and work in process | $46,663 | $66,221 |
Supplies and service parts | 55,453 | 72,551 |
Finished products | 58,337 | 68,335 |
Inventory at FIFO cost | 160,453 | 207,107 |
Excess of FIFO cost over LIFO cost | -26,187 | -27,429 |
Total inventory, net | $134,266 | $179,678 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |||
Customer relationships | Customer relationships | Supplier relationships | Supplier relationships | Software & technology | Software & technology | Trademark & trade names | Trademark & trade names | Non-compete agreements | Non-compete agreements | Total intangible assets | Total intangible assets | Management Services | |||||||
Finite lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gross Carrying Amount | ' | ' | ' | ' | $353,241,000 | $407,901,000 | $29,000,000 | $29,000,000 | $166,397,000 | $169,632,000 | $35,177,000 | $35,078,000 | $7,349,000 | $7,471,000 | $591,164,000 | $649,082,000 | ' | ||
Accumulated Amortization | ' | ' | ' | ' | -244,275,000 | -269,100,000 | -24,288,000 | -22,113,000 | -153,153,000 | -151,628,000 | -33,549,000 | -32,615,000 | -7,311,000 | -7,412,000 | -462,576,000 | -482,868,000 | ' | ||
Finite lived intangible assets, net | 128,588,000 | ' | 128,588,000 | ' | 108,966,000 | 138,801,000 | 4,712,000 | 6,887,000 | 13,244,000 | 18,004,000 | 1,628,000 | 2,463,000 | 38,000 | 59,000 | 128,588,000 | 166,214,000 | ' | ||
Finite Lived Intangible Assets Amortization Expense | 8,000,000 | 9,000,000 | 26,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Goodwill, Impairment Loss | $101,415,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,253,000 | [1] |
[1] |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill 2 (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Finite lived intangible assets future amortization expense | ' |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $8,848 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 34,246 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 30,288 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 22,935 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11,352 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 20,919 |
Finite lived intangible assets, net | $128,588 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill 3 (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | $2,284,603 | |
Accumulated impairment | ' | -148,465 | |
Impairment | -101,415 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 2,136,138 | |
Other | -3,058 | [2] | ' |
Goodwill, ending period | 1,729,178 | 2,136,138 | |
Goodwill including Discontinued Operations | 2,031,665 | ' | |
North America Mailing | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 355,874 | |
Accumulated impairment | ' | 0 | |
Impairment | 0 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 355,874 | |
Other | 2,439 | [2] | ' |
Goodwill, ending period | 358,313 | 355,874 | |
International Mailing | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 183,908 | |
Accumulated impairment | ' | 0 | |
Impairment | -1,162 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 183,908 | |
Other | -1,633 | [2] | ' |
Goodwill, ending period | 181,113 | 183,908 | |
Small & Medium Business Solutions | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 539,782 | |
Accumulated impairment | ' | 0 | |
Impairment | -1,162 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 539,782 | |
Other | 806 | [2] | ' |
Goodwill, ending period | 539,426 | 539,782 | |
Production Mail | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 131,865 | |
Accumulated impairment | ' | 0 | |
Impairment | 0 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 131,865 | |
Other | -15,050 | [2] | ' |
Goodwill, ending period | 116,815 | 131,865 | |
Management Services | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 488,399 | |
Accumulated impairment | ' | -84,500 | |
Impairment | -100,253 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 403,899 | |
Other | -1,159 | [2] | ' |
Goodwill, ending period | 302,487 | 403,899 | |
Management Services | Assets Held-for-sale [Member] | ' | ' | |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, ending period | -302,487 | ' | |
Mail Services | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 259,106 | |
Accumulated impairment | ' | -63,965 | |
Impairment | 0 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 195,141 | |
Other | 0 | [2] | ' |
Goodwill, ending period | 195,141 | 195,141 | |
Enterprise Business Solutions | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 879,370 | |
Accumulated impairment | ' | -148,465 | |
Impairment | -100,253 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 730,905 | |
Other | -16,209 | [2] | ' |
Goodwill, ending period | 614,443 | 730,905 | |
Digital Commerce Solutions [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Gross value before accumulated impairment | ' | 865,451 | |
Accumulated impairment | ' | 0 | |
Impairment | 0 | [1] | ' |
Goodwill [Roll Forward] | ' | ' | |
Goodwill, beginning period | ' | 865,451 | |
Other | 12,345 | [2] | ' |
Goodwill, ending period | $877,796 | $865,451 | |
[1] | |||
[2] | foreign currency translation adjustments |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Extinguishment of Debt, Amount | $405,000,000 | ' | ' | ' | |||
Gains (Losses) on Extinguishment of Debt | 25,000,000 | ' | ' | ' | |||
Derivative, Notional Amount | 450,000,000 | 450,000,000 | ' | ' | |||
Notional Amount Of Interest Rate Derivatives Unwound During Period | 225,000,000 | 225,000,000 | ' | ' | |||
Principal payments of long-term obligations | ' | 779,637,000 | 550,000,000 | ' | |||
Short-term Debt, Weighted Average Interest Rate | 0.42% | 0.42% | ' | ' | |||
Other | 40,227,000 | [1] | 40,227,000 | [1] | ' | 52,375,000 | [1] |
Total debt | 3,650,590,000 | 3,650,590,000 | ' | 4,017,375,000 | |||
Current portion | 299,570,000 | 299,570,000 | ' | 375,000,000 | |||
Long-term debt | 3,351,020,000 | 3,351,020,000 | ' | 3,642,375,000 | |||
Term loans | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Face Amount | 230,000,000 | 230,000,000 | ' | 230,000,000 | |||
Debt due 2013 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | 3.88% | ' | ' | |||
Debt Instrument, Face Amount | 0 | [2],[3] | 0 | [2],[3] | ' | 375,000,000 | [2],[3] |
Debt Due 2014 [Member] | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | [2],[3] | 4.88% | [2],[3] | ' | ' | |
Debt Instrument, Face Amount | 299,570,000 | 299,570,000 | ' | 450,000,000 | |||
Debt due 2015 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | [3] | 5.00% | [3] | ' | ' | |
Debt Instrument, Face Amount | 274,879,000 | [3] | 274,879,000 | [3] | ' | 400,000,000 | [3] |
Debt due 2016 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | [3] | 4.75% | [3] | ' | ' | |
Debt Instrument, Face Amount | 370,914,000 | [3] | 370,914,000 | [3] | ' | 500,000,000 | [3] |
Debt due 2017 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ' | ' | |||
Debt Instrument, Face Amount | 500,000,000 | 500,000,000 | ' | 500,000,000 | |||
Debt due 2019 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | 6.25% | ' | ' | |||
Debt Instrument, Face Amount | 300,000,000 | 300,000,000 | ' | 300,000,000 | |||
Debt due 2022 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ' | ' | |||
Debt Instrument, Face Amount | 110,000,000 | 110,000,000 | ' | 110,000,000 | |||
Debt due 2037 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ' | ' | |||
Debt Instrument, Face Amount | 500,000,000 | 500,000,000 | ' | 500,000,000 | |||
Debt due 2043 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | [4] | 6.70% | [4] | ' | ' | |
Debt Instrument, Face Amount | 425,000,000 | [4] | 425,000,000 | [4] | ' | 0 | [4] |
Maximum | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Commercial Paper | 100,000,000 | 100,000,000 | ' | ' | |||
Average Borrowings | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Commercial Paper | 33,000,000 | 33,000,000 | ' | ' | |||
LIBOR | Debt due 2018 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.60% | 5.60% | ' | ' | |||
Debt Instrument, Face Amount | 250,000,000 | 250,000,000 | ' | 250,000,000 | |||
Prime Rate | Debt due 2018 | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ' | ' | |||
Debt Instrument, Face Amount | $350,000,000 | $350,000,000 | ' | $350,000,000 | |||
[1] | Other consists of the unamortized proceeds received from unwinding of interest rate swaps, unamortized net debt discounts and the fair value adjustment of interest rate swaps. | ||||||
[2] | Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements. | ||||||
[3] | During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income. | ||||||
[4] | During the first quarter, we issued $425 million of 6.7% fixed rate 30-year notes. Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. We used the net proceeds from the notes to fund the Tender Offer. |
Noncontrolling_Interests_Prefe1
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Preferred Stock, Value, Issued | $4 | $4 | $4 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% | 25.00% | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 75.00% | 75.00% | ' |
Preferred Stock, Dividend Rate, Percentage | 4.00% | ' | 4.00% |
Preferred Stock, Cumulative Dividend Increase Interval if Outstanding Once Callable | ' | '6 months | ' |
Redeemable Preferred Stock Member | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Shares, Outstanding | 300,000 | 300,000 | ' |
Preferred Stock, Value, Issued | $300,000 | $300,000 | ' |
Preferred Stock, Dividend Rate, Percentage | 6.13% | ' | ' |
Preferred stock-perpetual voting, dividend increase percentage each interval once shares become callable | 50.00% | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
Preferred stock | Preferred stock | Preferred stock | Preferred stock | Preference stock | Preference stock | Common stock | Common stock | Common stock | Common stock | Additional paid-in capital | Additional paid-in capital | Retained earnings | Retained earnings | Accumulated other comprehensive income loss | Accumulated other comprehensive income loss | Accumulated other comprehensive income loss | Accumulated other comprehensive income loss | Treasury stock | Treasury stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances, beginning of period | ' | ' | $110,631 | ($38,986) | $4 | $4 | $4 | $4 | $648 | $659 | $323,338 | $323,338 | $323,338 | $323,338 | $223,847 | $240,584 | $4,744,802 | $4,600,217 | ($696,593) | ($681,213) | ($625,868) | ($661,645) | ($4,500,795) | ($4,542,143) |
Net income - Pitney Bowes Inc. | -5,527 | 76,533 | 52,746 | 334,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,746 | 334,826 | ' | ' | ' | ' | ' | ' |
Other comprehensive income | 26,930 | 31,790 | -15,380 | 35,777 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common | ' | ' | -150,920 | -225,244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -150,920 | -225,244 | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Cash Paid | ' | ' | $0.75 | $1.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferrence | -12 | -12 | -35 | -38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -35 | -38 | ' | ' | ' | ' | ' | ' |
Issuances of common stock | ' | ' | 2,134 | 4,832 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -33,412 | -31,306 | ' | ' | ' | ' | ' | ' | 35,546 | 36,138 |
Conversions to common stock | ' | ' | 0 | 0 | ' | ' | ' | ' | -40 | -6 | ' | ' | ' | ' | -853 | -124 | ' | ' | ' | ' | ' | ' | 893 | 130 |
Stock-based compensation expnse | ' | ' | 12,061 | 13,466 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,061 | 13,466 | ' | ' | ' | ' | ' | ' | ' | ' |
Balances, end of period | 11,237 | 124,633 | 11,237 | 124,633 | 4 | 4 | 4 | 4 | 608 | 653 | 323,338 | 323,338 | 323,338 | 323,338 | 201,643 | 222,620 | 4,646,593 | 4,709,761 | -696,593 | -681,213 | -625,868 | -661,645 | -4,464,356 | -4,505,875 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 19,140 | 19,025 | -40,618 | -883 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on investment securities | -222 | 589 | -4,667 | 967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 7,950 | 12,151 | 28,943 | 35,115 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income | $26,930 | $31,790 | ($15,380) | $35,777 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Document Fiscal Year Focus | ' | ' | '2013 | ' | ||||
Revenue | ($169) | [1] | $456 | [1] | ($922) | [1] | $1,230 | [1] |
Cost of sales | 108 | [1] | -56 | [1] | 520 | [1] | -129 | [1] |
Interest expense | -507 | [1] | -507 | [1] | -1,521 | [1] | -1,521 | [1] |
Total before tax | -568 | [1] | -107 | [1] | -1,923 | [1] | -420 | [1] |
Tax benefit | 222 | [1] | 43 | [1] | 750 | [1] | 165 | [1] |
Net of tax | -346 | [1] | -64 | [1] | -1,173 | [1] | -255 | [1] |
Interest income | 1,640 | [1] | -41 | [1] | -962 | [1] | -517 | [1] |
Tax benefit | -607 | [1] | 15 | [1] | 356 | [1] | 191 | [1] |
Net of tax | 1,033 | [1] | -26 | [1] | -606 | [1] | -326 | [1] |
Transition credit | 2 | [1],[2] | 2 | [1],[2] | 6 | [1],[2] | 6 | [1],[2] |
Prior service (costs) credit | -163 | [1],[2] | 295 | [1],[2] | -524 | [1],[2] | 884 | [1],[2] |
Actuarial losses | -12,136 | [1],[2] | -18,852 | [1],[2] | -44,038 | [1],[2] | -56,376 | [1],[2] |
Total before tax | -12,297 | [1],[2] | -18,555 | [1],[2] | -44,556 | [1],[2] | -55,486 | [1],[2] |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Tax | 4,347 | [1],[2] | 6,404 | [1],[2] | 15,613 | [1],[2] | 20,371 | [1],[2] |
Net of tax | 7,950 | [1],[2] | 12,151 | [1],[2] | 28,943 | [1],[2] | 35,115 | [1],[2] |
Balance Beginning | ' | ' | -681,213 | -661,645 | ||||
Other comprehensive income (loss) before reclassifications | ' | ' | -42,289 | [3] | 81 | [3] | ||
Amounts reclassified from accumulated other comprehensive income | ' | ' | 26,909 | [3],[4],[5] | 35,696 | [3],[4],[5] | ||
Amounts reclassified from accumulated other comprehensive income | 7,950 | 12,151 | 28,943 | 35,115 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | -222 | 589 | -4,667 | 967 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 62 | 25 | 962 | 578 | ||||
Other Comprehensive Income (Loss), Net of Tax | -26,930 | -31,790 | 15,380 | -35,777 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -696,593 | -625,868 | -696,593 | -625,868 | ||||
Gains (losses) on cash flow hedges | ' | ' | ' | ' | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Balance Beginning | ' | ' | -7,777 | -8,438 | ||||
Other comprehensive income (loss) before reclassifications | ' | ' | -211 | [3] | 323 | [3] | ||
Amounts reclassified from accumulated other comprehensive income | ' | ' | 1,173 | [3],[4],[5] | 255 | [3],[4],[5] | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | ' | ' | 962 | 578 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -6,815 | -7,860 | -6,815 | -7,860 | ||||
Unrealized gains (losses) on available for sale securities | ' | ' | ' | ' | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net of tax | ' | ' | 606 | [3],[4],[5] | 326 | [3],[4],[5] | ||
Balance Beginning | ' | ' | 4,513 | 4,387 | ||||
Other comprehensive income (loss) before reclassifications | ' | ' | -5,273 | [3] | 641 | [3] | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ' | ' | -4,667 | 967 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -154 | 5,354 | -154 | 5,354 | ||||
Defined benefit pension plans and nonpension postretirement benefit plans | ' | ' | ' | ' | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Balance Beginning | ' | ' | -759,199 | -741,546 | ||||
Amounts reclassified from accumulated other comprehensive income | ' | ' | 28,943 | [3],[4],[5] | 35,115 | [3],[4],[5] | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | ' | ' | 28,943 | 35,115 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -730,256 | -706,431 | -730,256 | -706,431 | ||||
Foreign currency items | ' | ' | ' | ' | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Balance Beginning | ' | ' | 81,250 | 83,952 | ||||
Other comprehensive income (loss) before reclassifications | ' | ' | -36,805 | [3] | -883 | [3] | ||
Amounts reclassified from accumulated other comprehensive income | ' | ' | -3,813 | [3],[4],[5] | 0 | [3],[4],[5] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | -40,618 | -883 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $40,632 | $83,069 | $40,632 | $83,069 | ||||
[1] | Amounts in parentheses indicate debits (reductions) to income. | |||||||
[2] | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details). | |||||||
[3] | Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||
[4] | Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income. | |||||||
[5] | See table above for additional details of these reclassifications. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective Income Tax Rate | 12.30% | 24.80% | 19.10% | 20.80% |
Tax Benefit From An Affiliate Reorganization | ' | ' | $13 | ' |
Income Tax Reconciliation, Tax Planning Initiatives | 4 | ' | 11 | ' |
Tax Benefit From Sale Of Non U S Leverage Lease | ' | ' | ' | 17 |
Tax benefit related to foreign tax | ' | 36 | ' | 58 |
Tax Accrual For Repatriation Of Foreign Earnings | ' | ' | 28 | ' |
Effective Income Tax Rate Reconciliation, Other Adjustments | 5 | ' | ' | ' |
Income Tax Reconciliation, Change in Enacted Tax Rate | $4 | ' | ' | ' |
Pensions_and_Other_Benefit_Pro2
Pensions and Other Benefit Programs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Amortization of transition credit | ($2,000) | [1],[2] | ($2,000) | [1],[2] | ($6,000) | [1],[2] | ($6,000) | [1],[2] |
Amortization of prior service cost | 163,000 | [1],[2] | -295,000 | [1],[2] | 524,000 | [1],[2] | -884,000 | [1],[2] |
Amortization of net actuarial loss | 12,136,000 | [1],[2] | 18,852,000 | [1],[2] | 44,038,000 | [1],[2] | 56,376,000 | [1],[2] |
Defined Benefit Plan Special Contributions | ' | ' | 0 | -95,000,000 | ||||
Pension Plans, Defined Benefit | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Defined Benefit Plan Contributions By Employer | ' | ' | 10,000,000 | ' | ||||
Pension Plans, Defined Benefit | United States | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 3,597,000 | 4,735,000 | 10,890,000 | 14,204,000 | ||||
Interest cost | 18,264,000 | 20,260,000 | 55,169,000 | 60,780,000 | ||||
Expected return on plan assets | -26,781,000 | -30,406,000 | -80,908,000 | -91,218,000 | ||||
Amortization of transition credit | 0 | 0 | 0 | 0 | ||||
Amortization of prior service cost | 95,000 | 200,000 | 318,000 | 602,000 | ||||
Amortization of net actuarial loss | 7,690,000 | 13,240,000 | 26,234,000 | 39,719,000 | ||||
Settlement | 145,000 | 0 | 1,561,000 | 0 | ||||
Special termination benefits | 0 | 0 | -548,000 | 0 | ||||
Curtailment | ' | ' | 814,000 | 0 | ||||
Net periodic benefit cost | 3,010,000 | 8,029,000 | 14,626,000 | 24,087,000 | ||||
Defined Benefit Plan Contributions By Employer | ' | ' | 9,000,000 | ' | ||||
Pension Plans, Defined Benefit | Foreign | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 968,000 | 1,774,000 | 5,280,000 | 5,805,000 | ||||
Interest cost | 1,870,000 | 6,909,000 | 25,246,000 | 20,766,000 | ||||
Expected return on plan assets | -3,266,000 | -8,069,000 | -31,187,000 | -24,133,000 | ||||
Amortization of transition credit | -2,000 | -2,000 | -6,000 | -6,000 | ||||
Amortization of prior service cost | 28,000 | 28,000 | 84,000 | 83,000 | ||||
Amortization of net actuarial loss | 2,873,000 | 3,558,000 | 11,511,000 | 10,546,000 | ||||
Settlement | 0 | 192,000 | 0 | 442,000 | ||||
Special termination benefits | -104,000 | 0 | -104,000 | 0 | ||||
Curtailment | ' | ' | 0 | 0 | ||||
Net periodic benefit cost | 2,575,000 | 4,390,000 | 11,032,000 | 13,503,000 | ||||
Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 935,000 | 801,000 | 2,966,000 | 2,560,000 | ||||
Interest cost | 2,186,000 | 2,896,000 | 7,210,000 | 8,685,000 | ||||
Amortization of prior service cost | 40,000 | -523,000 | 122,000 | -1,569,000 | ||||
Amortization of net actuarial loss | 1,573,000 | 2,054,000 | 6,293,000 | 6,111,000 | ||||
Net periodic benefit cost | 4,734,000 | 5,228,000 | 16,591,000 | 15,787,000 | ||||
Defined Benefit Plan Contributions By Employer | $5,000,000 | $7,000,000 | $21,000,000 | ' | ||||
[1] | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details). | |||||||
[2] | Amounts in parentheses indicate debits (reductions) to income. |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amounts attributable to common stockholders: | ' | ' | ' | ' |
Net income from continuing operations | $76,677 | $87,946 | $222,115 | $309,569 |
Income (loss) from discontinued operations | -82,204 | -11,413 | -169,369 | 25,257 |
Net (loss) income - Pitney Bowes Inc. (numerator for diluted EPS) | -5,527 | 76,533 | 52,746 | 334,826 |
Less: Preference stock dividend | -12 | -12 | -35 | -38 |
(Loss) income attributable to common stockholders (numerator for basic EPS) | ($5,539) | $76,521 | $52,711 | $334,788 |
Denominator (in thousands): | ' | ' | ' | ' |
Weighted average shares used in basic EPS | 201,827 | 200,593 | 201,490 | 200,266 |
Effect of dilutive shares: | ' | ' | ' | ' |
Preferred stock | 2 | 2 | 2 | 2 |
Preference stock | 376 | 399 | 386 | 399 |
Stock plans | 935 | 608 | 712 | 458 |
Weighted-average shares used in diluted EPS | 203,140 | 201,602 | 202,590 | 201,125 |
Basic earnings per share: | ' | ' | ' | ' |
Continuing operations | $0.38 | $0.44 | $1.10 | $1.55 |
Discontinued operations | ($0.41) | ($0.06) | ($0.84) | $0.13 |
Net (loss) income | ($0.03) | $0.38 | $0.26 | $1.67 |
Diluted earnings per share: | ' | ' | ' | ' |
Continuing operations | $0.38 | $0.44 | $1.10 | $1.54 |
Discontinued operations | ($0.40) | ($0.06) | ($0.84) | $0.13 |
Net (loss) income | ($0.03) | $0.38 | $0.26 | $1.66 |
Anti-dilutive shares (in thousands): | ' | ' | ' | ' |
Anti-dilutive shares not used in calculating diluted weighted-average shares | 12,503 | 13,607 | 12,886 | 14,391 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Management Services - North America | Debt Due 2014 [Member] | Debt Due 2014 [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | $299,570,000 | $450,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 4.88% | [1],[2] | ' |
Subsequent Event, Disposition of Business, Transaction Costs | 314,000,000 | ' | ' | ' | ' | ' | ' | |
Revenues | $938,786,000 | $949,789,000 | $2,838,214,000 | $2,899,548,000 | $7,000,000 | ' | ' | |
[1] | Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements. | |||||||
[2] | During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income. |