Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'PITNEY BOWES INC /DE/ | ' |
Entity Central Index Key | '0000078814 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Common Stock Shares Outstanding | ' | 202,811,576 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Equipment sales | $191,518 | $225,224 | $380,574 | $421,991 |
Supplies | 76,284 | 71,275 | 155,801 | 144,493 |
Software | 109,065 | 100,482 | 200,620 | 187,494 |
Rentals | 122,443 | 129,404 | 246,022 | 258,518 |
Financing | 107,644 | 112,820 | 217,694 | 226,707 |
Support services | 158,190 | 160,303 | 316,442 | 322,892 |
Business services | 193,306 | 151,154 | 378,794 | 297,930 |
Total revenue | 958,450 | 950,662 | 1,895,947 | 1,860,025 |
Costs and expenses: | ' | ' | ' | ' |
Cost of equipment sales | 88,818 | 112,079 | 171,352 | 206,622 |
Cost of supplies | 23,505 | 22,246 | 47,659 | 45,092 |
Cost of software | 33,484 | 25,604 | 63,648 | 50,395 |
Cost of rentals | 25,193 | 25,114 | 50,637 | 51,512 |
Financing interest expense | 20,413 | 18,951 | 40,066 | 37,970 |
Cost of support services | 96,722 | 99,337 | 195,703 | 201,866 |
Cost of business services | 135,024 | 108,168 | 263,960 | 210,523 |
Selling, general and administrative | 338,384 | 353,923 | 689,759 | 705,577 |
Research and development | 28,649 | 27,331 | 54,841 | 56,582 |
Restructuring charges | 8,299 | 19,031 | 18,140 | 19,031 |
Interest expense, net | 21,482 | 30,045 | 45,546 | 59,036 |
Other expense | 0 | 0 | 61,657 | 25,121 |
Total costs and expenses | 819,973 | 841,829 | 1,702,968 | 1,669,327 |
Income from continuing operations before income taxes | 138,477 | 108,833 | 192,979 | 190,698 |
Provision for income taxes | 46,335 | 24,218 | 54,371 | 42,013 |
Income from continuing operations | 92,142 | 84,615 | 138,608 | 148,685 |
Net income (loss) | 98,859 | -4,639 | 148,126 | 67,461 |
Less: Preferred stock dividends attributable to noncontrolling interests | 4,594 | 4,594 | 9,188 | 9,188 |
Net income (loss) attributable to Pitney Bowes Inc. | 94,265 | -9,233 | 138,938 | 58,273 |
Amounts attributable to common stockholders: | ' | ' | ' | ' |
Net income from continuing operations | 87,548 | 80,021 | 129,420 | 139,497 |
Income (loss) from discontinued operations, net of tax | 6,717 | -89,254 | 9,518 | -81,224 |
Net income (loss) attributable to Pitney Bowes Inc. | $94,265 | ($9,233) | $138,938 | $58,273 |
Basic earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.43 | $0.40 | $0.64 | $0.69 |
Discontinued operations | $0.03 | ($0.44) | $0.05 | ($0.40) |
Net income (loss) attributable to Pitney Bowes Inc. | $0.47 | ($0.05) | $0.69 | $0.29 |
Diluted earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.43 | $0.39 | $0.63 | $0.69 |
Discontinued operations | $0.03 | ($0.44) | $0.05 | ($0.40) |
Net income (loss) attributable to Pitney Bowes Inc. | $0.46 | ($0.05) | $0.68 | $0.29 |
Dividends declared per share of common stock | $0.19 | $0.19 | $0.38 | $0.56 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $98,859 | ($4,639) | $148,126 | $67,461 |
Less: Preferred stock dividends attributable to noncontrolling interests | 4,594 | 4,594 | 9,188 | 9,188 |
Net income (loss) attributable to Pitney Bowes Inc. | 94,265 | -9,233 | 138,938 | 58,273 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Net unrealized gain on cash flow hedges, net of tax of $267, $230, $505 and $574, respectively | 417 | 362 | 790 | 900 |
Net unrealized gain (loss) on investment securities, net of tax of $1,249, $(3,017), $2,453 and $(2,842), respectively | 2,136 | -4,719 | 4,195 | -4,445 |
Amortization of pension and postretirement costs, net of tax of $3,613, $4,926, $7,254 and $11,266, respectively | 6,280 | 9,391 | 12,422 | 20,993 |
Foreign currency translations | 5,149 | -17,554 | -2,202 | -59,758 |
Other comprehensive income (loss) | 13,982 | -12,520 | 15,205 | -42,310 |
Comprehensive income (loss) attributable to Pitney Bowes Inc. | $108,247 | ($21,753) | $154,143 | $15,963 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Net unrealized gain (loss) on cash flow hedges, tax | $267 | $230 | $505 | $574 | ||
Net unrealized loss on investment securities, tax | 1,249 | -3,017 | 2,453 | -2,842 | ||
Amortization of pension and postretirement costs, tax | $3,613 | [1],[2] | $4,926 | [1],[2] | $7,254 | $11,266 |
[1] | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 14 for additional details). | |||||
[2] | Amounts in parentheses indicate debits (reductions) to income. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,005,901 | $907,806 |
Short-term investments | 23,976 | 31,128 |
Accounts receivable (net of allowance of $13,589 and $13,419, respectively) | 409,514 | 469,800 |
Finance receivables (net of allowance of $22,852 and $24,340, respectively) | 1,048,563 | 1,102,921 |
Inventories | 101,252 | 103,580 |
Current income taxes | 31,580 | 28,934 |
Other current assets and prepayments | 125,540 | 147,067 |
Assets held for sale | 46,976 | 46,976 |
Total current assets | 2,793,302 | 2,838,212 |
Property, plant and equipment, net | 242,742 | 245,171 |
Rental property and equipment, net | 215,793 | 226,146 |
Finance receivables (net of allowance of $10,819 and $12,609, respectively) | 874,999 | 962,363 |
Investment in leveraged leases | 33,431 | 34,410 |
Goodwill | 1,728,385 | 1,734,871 |
Intangible assets, net | 102,760 | 120,387 |
Non-current income taxes | 66,598 | 73,751 |
Other assets | 538,073 | 537,397 |
Total assets | 6,596,083 | 6,772,708 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 1,504,887 | 1,644,582 |
Current income taxes | 191,687 | 157,340 |
Current portion of long-term debt | 274,879 | 0 |
Advance billings | 439,038 | 425,833 |
Total current liabilities | 2,410,491 | 2,227,755 |
Deferred taxes on income | 39,509 | 39,701 |
Tax uncertainties and other income tax liabilities | 166,920 | 190,645 |
Long-term debt | 2,964,843 | 3,346,295 |
Other non-current liabilities | 436,194 | 466,766 |
Total liabilities | 6,017,957 | 6,271,162 |
Noncontrolling interests (Preferred stockholders’ equity in subsidiaries) | 296,370 | 296,370 |
Commitments and contingencies (See Note 10) | ' | ' |
Stockholders’ equity: | ' | ' |
Cumulative preferred stock, $50 par value, 4% convertible | 1 | 4 |
Cumulative preference stock, no par value, $2.12 convertible | 563 | 591 |
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 172,565 | 196,977 |
Retained earnings | 4,778,506 | 4,715,564 |
Accumulated other comprehensive loss | -559,351 | -574,556 |
Treasury stock, at cost (120,633,020 and 121,255,390 shares, respectively) | -4,433,866 | -4,456,742 |
Total stockholders’ equity | 281,756 | 205,176 |
Total liabilities, noncontrolling interests and stockholders’ equity | $6,596,083 | $6,772,708 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable | $13,589 | $13,149 |
Allowance for Notes, Loans and Financing Receivable, Current | 22,852 | 24,340 |
Allowance for Notes, Loans and Financing Receivable, Noncurrent | $10,819 | $12,609 |
Preferred stock par value | $50 | $50 |
Preferred stock dividend rate, per-dollar dividend | 4.00% | 4.00% |
Preference Stock No Par Value | $0 | $0 |
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 | 120,633,020 | 121,255,390 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net income | $138,938 | $58,273 |
Cash flows from operating activities: | ' | ' |
Net income before attribution of noncontrolling interests | 148,126 | 67,461 |
Restructuring payments | -33,530 | -27,255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
(Gain) loss on disposal of businesses | -26,152 | 31,751 |
Proceeds from settlement of derivative instruments | 0 | 4,838 |
Depreciation and amortization | 93,717 | 113,702 |
Stock-based compensation | 7,976 | 7,241 |
Restructuring charges and asset impairments | 18,140 | 19,955 |
Goodwill impairment | 0 | 97,787 |
Changes in operating assets and liabilities: | ' | ' |
Decrease in accounts receivable | 66,778 | 67,420 |
Decrease in finance receivables | 82,597 | 96,928 |
(Increase) decrease in inventories | -1,852 | 29,863 |
Increase in other current assets and prepayments | -8,369 | -4,810 |
Decrease in accounts payable and accrued liabilities | -88,567 | -173,479 |
Increase (decrease) in current and non-current income taxes | 7,657 | -89,478 |
Increase in advance billings | 11,201 | 6,051 |
Other, net | 2,725 | 31,060 |
Net cash provided by operating activities | 280,447 | 279,035 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -191,882 | -198,337 |
Proceeds from sales/maturities of available-for-sale securities | 171,252 | 202,042 |
Short-term and other investments | 6,051 | 10,928 |
Capital expenditures | -72,350 | -73,441 |
Net investment in external financing | 838 | -1,021 |
Net proceeds from the sale of businesses | 101,454 | 0 |
Reserve account deposits | -3,356 | -26,189 |
Net cash provided by (used in) investing activities | 12,007 | -86,018 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of debt, net of fees and discounts of $7,475 and $13,387, respectively | 492,525 | 411,613 |
Principal payments of long-term debt | -599,850 | -779,637 |
Proceeds from the issuance of common stock under employee stock-based compensation plans | 4,027 | 3,621 |
Purchase of subsidiary shares from noncontrolling interest | -7,718 | 0 |
Dividends paid to stockholders | -76,000 | -113,106 |
Dividends paid to noncontrolling interests | -9,188 | -9,188 |
Net cash used in financing activities | -196,204 | -486,697 |
Effect of exchange rate changes on cash and cash equivalents | 1,845 | -11,028 |
Increase (decrease) in cash and cash equivalents | 98,095 | -304,708 |
Cash and cash equivalents at beginning of period | 907,806 | 913,276 |
Cash and cash equivalents at end of period | 1,005,901 | 608,568 |
Cash interest paid | 93,617 | 95,791 |
Cash income tax payments, net of refunds | $71,741 | $111,318 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Cash Flows [Abstract] | ' | ' |
Debt Instrument, Unamortized Discount | $7,475 | $13,387 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
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 helping small, mid-sized and large firms connect to customers to facilitate and simplify commerce, 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, customer engagement management and analytics and ecommerce parcel management, along with digital channel messaging for the Web, email and mobile applications. We conduct our business activities in five reportable segments. See Note 2 for information regarding our reportable segments. | |
We have prepared the accompanying unaudited Condensed Consolidated Financial Statements 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, 2013 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 fairly state 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, 2014. | |
On April 15, 2014, Pitney Bowes of Canada Ltd. (PB Canada), a wholly owned subsidiary, completed the sale of its Document Imaging Solutions (DIS) business, which consisted of hardware (copiers and printers), document management software solutions and the related lease portfolio to Konica Minolta Business Solutions (Canada) Ltd. (Konica Minolta) and a business equipment leasing services provider in two separate transactions. The operating results for DIS, originally included as part of the North America Mailing segment, have been classified as discontinued operations for all periods presented. In addition, PB Canada and Konica Minolta also entered into a strategic alliance whereby Konica Minolta will represent PB Canada’s mailing business in certain territories in Canada. | |
During 2013, we sold certain businesses and realigned our segment reporting to reflect the clients we serve, the solutions we offer, and how we manage, review, analyze and measure our operations. Further, in the first quarter of 2014, we reclassified our shipping solutions operations from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment. Prior year financial results have been recast to reflect those businesses sold as discontinued operations and our segment reporting has been recast to conform to our current segment presentation. The cash flows from discontinued operations are not separately stated or reclassified in the accompanying unaudited Condensed Consolidated Statements of Cash Flows. | |
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, 2013 (the 2013 Annual Report). | |
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. Accordingly, the unaudited Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2013 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 $10 million, respectively. Also during the third quarter of 2013, we determined that certain research and development costs should have been classified as cost of software. Accordingly, the unaudited Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2013 have been revised to reflect the correct classification, resulting in a decrease in research and development expenses and a corresponding increase in cost of software of $4 million and $8 million, respectively. These revisions did not impact previously reported total revenue, total costs and expenses, net income or earnings per share amounts and the effect of these revisions was not material to any of our previously issued financial statements. | |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The new standard requires companies to recognize revenue for the transfer of goods and services to customers in amounts that reflect the consideration the company expects to receive in exchange for those goods and services. The new standard will also result in enhanced disclosures about revenue. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and can be adopted either retrospectively or as a cumulative-effect adjustment. Early adoption is prohibited. We are assessing the impact the adoption of this standard will have on our consolidated financial statements and disclosures. | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The standard is effective on January 1, 2015, but early adoption is permitted for disposals or classifications of assets held for sale that have not been reported in financial statements previously issued or available for issuance. We elected to adopt this standard effective April 1, 2014. The adoption of this standard did not have a significant impact on our unaudited Condensed Consolidated Financial Statements. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
In 2013, as a result of the sale of certain businesses, we realigned our segment reporting to reflect the clients we serve, the solutions we offer, and how we manage, review, analyze and measure our operations. Further, in the first quarter of 2014, we reclassified our shipping solutions operations from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment. Prior year segment reporting has been recast to conform to our current segment presentation. The principal products and services of each of our reportable 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 of high-speed, high-volume inserting and sortation equipment and production printer systems and supplies to large enterprise clients to process inbound and outbound mail and related support and other professional services. | ||||||||||||||||
Presort Services: Includes 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, customer engagement, geocoding and location intelligence software; (ii) shipping and cross-border ecommerce solutions; (iii) direct marketing services for targeted clients; and (iv) digital mail delivery service offering. | ||||||||||||||||
We determine segment earnings before interest and taxes (EBIT) 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 other items, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management believes segment EBIT provides an analysis of our 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 consolidated results of operations. | ||||||||||||||||
Revenue and EBIT by business segment is presented below. | ||||||||||||||||
Revenues | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America Mailing | $ | 371,194 | $ | 392,197 | $ | 752,221 | $ | 781,033 | ||||||||
International Mailing | 153,260 | 150,357 | 306,528 | 303,333 | ||||||||||||
Small & Medium Business Solutions | 524,454 | 542,554 | 1,058,749 | 1,084,366 | ||||||||||||
Production Mail | 111,756 | 134,422 | 216,972 | 243,875 | ||||||||||||
Presort Services | 111,281 | 106,961 | 227,772 | 217,861 | ||||||||||||
Enterprise Business Solutions | 223,037 | 241,383 | 444,744 | 461,736 | ||||||||||||
Digital Commerce Solutions | 210,959 | 166,725 | 392,454 | 313,923 | ||||||||||||
Total revenue | $ | 958,450 | $ | 950,662 | $ | 1,895,947 | $ | 1,860,025 | ||||||||
EBIT | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America Mailing | $ | 156,781 | $ | 157,518 | $ | 317,119 | $ | 305,976 | ||||||||
International Mailing | 26,449 | 20,075 | 51,268 | 37,465 | ||||||||||||
Small & Medium Business Solutions | 183,230 | 177,593 | 368,387 | 343,441 | ||||||||||||
Production Mail | 10,558 | 15,787 | 18,295 | 23,619 | ||||||||||||
Presort Services | 22,412 | 21,246 | 46,308 | 44,734 | ||||||||||||
Enterprise Business Solutions | 32,970 | 37,033 | 64,603 | 68,353 | ||||||||||||
Digital Commerce Solutions | 17,929 | 15,363 | 27,460 | 15,084 | ||||||||||||
Total EBIT | 234,129 | 229,989 | 460,450 | 426,878 | ||||||||||||
Reconciling items: | ||||||||||||||||
Interest, net (1) | (41,895 | ) | (48,996 | ) | (85,612 | ) | (97,006 | ) | ||||||||
Unallocated corporate expenses | (45,458 | ) | (53,129 | ) | (102,062 | ) | (95,022 | ) | ||||||||
Restructuring charges | (8,299 | ) | (19,031 | ) | (18,140 | ) | (19,031 | ) | ||||||||
Other expense | — | — | (61,657 | ) | (25,121 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 138,477 | $ | 108,833 | $ | 192,979 | $ | 190,698 | ||||||||
(1) Includes financing interest expense and other interest expense, net. | ||||||||||||||||
Finance_Assets
Finance Assets | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
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. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Customer acquisition costs are expensed as incurred. | ||||||||||||||||||||
Finance receivables at June 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,320,426 | $ | 444,861 | $ | 1,765,287 | ||||||||||||||
Unguaranteed residual values | 110,195 | 21,512 | 131,707 | |||||||||||||||||
Unearned income | (278,782 | ) | (100,561 | ) | (379,343 | ) | ||||||||||||||
Allowance for credit losses | (13,143 | ) | (7,604 | ) | (20,747 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,138,696 | 358,208 | 1,496,904 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 383,532 | 56,050 | 439,582 | |||||||||||||||||
Allowance for credit losses | (10,775 | ) | (2,149 | ) | (12,924 | ) | ||||||||||||||
Net investment in loan receivables | 372,757 | 53,901 | 426,658 | |||||||||||||||||
Net investment in finance receivables | $ | 1,511,453 | $ | 412,109 | $ | 1,923,562 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,456,420 | $ | 456,759 | $ | 1,913,179 | ||||||||||||||
Unguaranteed residual values | 121,339 | 21,553 | 142,892 | |||||||||||||||||
Unearned income | (299,396 | ) | (101,311 | ) | (400,707 | ) | ||||||||||||||
Allowance for credit losses | (14,165 | ) | (9,703 | ) | (23,868 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,264,198 | 367,298 | 1,631,496 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 397,815 | 49,054 | 446,869 | |||||||||||||||||
Allowance for credit losses | (11,165 | ) | (1,916 | ) | (13,081 | ) | ||||||||||||||
Net investment in loan receivables | 386,650 | 47,138 | 433,788 | |||||||||||||||||
Net investment in finance receivables | $ | 1,650,848 | $ | 414,436 | $ | 2,065,284 | ||||||||||||||
Finance receivables with a net investment value of $62 million were included in the sale of DIS. | ||||||||||||||||||||
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 six months ended June 30, 2014 and 2013 was as follows: | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2014 | $ | 14,165 | $ | 9,703 | $ | 11,165 | $ | 1,916 | $ | 36,949 | ||||||||||
Amounts charged to expense | 2,360 | (350 | ) | 4,742 | 1,034 | 7,786 | ||||||||||||||
Accounts written off | (3,382 | ) | (1,749 | ) | (5,132 | ) | (801 | ) | (11,064 | ) | ||||||||||
Balance at June 30, 2014 | $ | 13,143 | $ | 7,604 | $ | 10,775 | $ | 2,149 | $ | 33,671 | ||||||||||
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 | 3,022 | 784 | 4,625 | 524 | 8,955 | |||||||||||||||
Accounts written off | (4,397 | ) | (2,268 | ) | (5,388 | ) | (895 | ) | (12,948 | ) | ||||||||||
Balance at June 30, 2013 | $ | 15,604 | $ | 7,178 | $ | 11,559 | $ | 1,760 | $ | 36,101 | ||||||||||
Aging of Receivables | ||||||||||||||||||||
The aging of gross finance receivables at June 30, 2014 and December 31, 2013 was as follows: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,248,259 | $ | 412,514 | $ | 365,972 | $ | 53,933 | $ | 2,080,678 | ||||||||||
> 30 days and < 61 days | 29,229 | 9,627 | 10,132 | 1,176 | 50,164 | |||||||||||||||
> 60 days and < 91 days | 20,140 | 6,542 | 2,919 | 485 | 30,086 | |||||||||||||||
> 90 days and < 121 days | 6,540 | 4,578 | 1,887 | 224 | 13,229 | |||||||||||||||
> 120 days | 16,258 | 11,600 | 2,622 | 232 | 30,712 | |||||||||||||||
Total | $ | 1,320,426 | $ | 444,861 | $ | 383,532 | $ | 56,050 | $ | 2,204,869 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,540 | $ | 4,578 | $ | — | $ | — | $ | 11,118 | ||||||||||
Not accruing interest | 16,258 | 11,600 | 4,509 | 456 | 32,823 | |||||||||||||||
Total | $ | 22,798 | $ | 16,178 | $ | 4,509 | $ | 456 | $ | 43,941 | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,383,253 | $ | 425,923 | $ | 379,502 | $ | 42,573 | $ | 2,231,251 | ||||||||||
> 30 days and < 61 days | 32,102 | 11,760 | 10,464 | 4,391 | 58,717 | |||||||||||||||
> 60 days and < 91 days | 20,830 | 5,724 | 3,330 | 1,363 | 31,247 | |||||||||||||||
> 90 days and < 121 days | 6,413 | 3,979 | 1,809 | 311 | 12,512 | |||||||||||||||
> 120 days | 13,822 | 9,373 | 2,710 | 416 | 26,321 | |||||||||||||||
Total | $ | 1,456,420 | $ | 456,759 | $ | 397,815 | $ | 49,054 | $ | 2,360,048 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,413 | $ | 3,979 | $ | — | $ | — | $ | 10,392 | ||||||||||
Not accruing interest | 13,822 | 9,373 | 4,519 | 727 | 28,441 | |||||||||||||||
Total | $ | 20,235 | $ | 13,352 | $ | 4,519 | $ | 727 | $ | 38,833 | ||||||||||
Credit Quality | ||||||||||||||||||||
In extending and managing credit lines to new and existing clients, we use 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 June 30, 2014 and December 31, 2013 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. | |||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Low | $ | 988,555 | $ | 1,081,853 | ||||||||||||||||
Medium | 225,106 | 244,379 | ||||||||||||||||||
High | 47,293 | 51,851 | ||||||||||||||||||
Not Scored | 59,472 | 78,337 | ||||||||||||||||||
Total | $ | 1,320,426 | $ | 1,456,420 | ||||||||||||||||
Loan receivables | ||||||||||||||||||||
Low | $ | 263,924 | $ | 279,607 | ||||||||||||||||
Medium | 93,594 | 95,524 | ||||||||||||||||||
High | 10,968 | 11,511 | ||||||||||||||||||
Not Scored | 15,046 | 11,173 | ||||||||||||||||||
Total | $ | 383,532 | $ | 397,815 | ||||||||||||||||
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 June 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Rental receivables | $ | 53,051 | $ | 61,721 | ||||||||||||||||
Unguaranteed residual values | 13,181 | 13,235 | ||||||||||||||||||
Principal and interest on non-recourse loans | (29,023 | ) | (35,449 | ) | ||||||||||||||||
Unearned income | (3,778 | ) | (5,097 | ) | ||||||||||||||||
Investment in leveraged leases | 33,431 | 34,410 | ||||||||||||||||||
Less: deferred taxes related to leveraged leases | (13,245 | ) | (15,078 | ) | ||||||||||||||||
Net investment in leveraged leases | $ | 20,186 | $ | 19,332 | ||||||||||||||||
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consisted of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials and work in process | $ | 35,723 | $ | 33,920 | ||||
Supplies and service parts | 45,045 | 48,165 | ||||||
Finished products | 35,218 | 38,515 | ||||||
Inventory at FIFO cost | 115,986 | 120,600 | ||||||
Excess of FIFO cost over LIFO cost | (14,734 | ) | (17,020 | ) | ||||
Total inventory, net | $ | 101,252 | $ | 103,580 | ||||
Discontinued_Operations_and_As
Discontinued Operations and Assets Held for Sale | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||
Discontinued Operations and Assets Held for Sale | ' | |||||||||||||||||||
Discontinued Operations and Assets Held For Sale | ||||||||||||||||||||
Discontinued Operations | ||||||||||||||||||||
Discontinued operations includes the worldwide Management Services business (PBMS), International Mailing Services business (IMS) and Nordic furniture business, which were sold during 2013 and DIS, which was sold in April 2014. The following tables show selected financial information included in discontinued operations: | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 3,567 | $ | 3,567 | ||||||||||
Income from operations before taxes | $ | 580 | $ | — | $ | — | $ | 1,018 | $ | 1,598 | ||||||||||
Gain on sale | — | 831 | — | 25,198 | 26,029 | |||||||||||||||
Income before taxes | 580 | 831 | — | 26,216 | 27,627 | |||||||||||||||
Tax provision | 217 | 321 | — | 20,372 | 20,910 | |||||||||||||||
Income from discontinued operations | $ | 363 | $ | 510 | $ | — | $ | 5,844 | $ | 6,717 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | 219,471 | $ | 2,964 | $ | 13,082 | $ | 19,755 | $ | 255,272 | ||||||||||
(Loss) income from operations before taxes | $ | (117,636 | ) | $ | (378 | ) | $ | (597 | ) | $ | 4,418 | $ | (114,193 | ) | ||||||
Loss on sale | — | (2,263 | ) | — | — | (2,263 | ) | |||||||||||||
(Loss) income before taxes | (117,636 | ) | (2,641 | ) | (597 | ) | 4,418 | (116,456 | ) | |||||||||||
Tax (benefit) provision | (28,153 | ) | (55 | ) | (167 | ) | 1,173 | (27,202 | ) | |||||||||||
(Loss) income from discontinued operations | $ | (89,483 | ) | $ | (2,586 | ) | $ | (430 | ) | $ | 3,245 | $ | (89,254 | ) | ||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 19,858 | $ | 19,858 | ||||||||||
Income from operations before taxes | $ | 334 | $ | 308 | $ | 345 | $ | 3,429 | $ | 4,416 | ||||||||||
Gain on sale | 130 | 1,994 | — | 25,198 | 27,322 | |||||||||||||||
Income before taxes | 464 | 2,302 | 345 | 28,627 | 31,738 | |||||||||||||||
Tax provision | 196 | 850 | 97 | 21,077 | 22,220 | |||||||||||||||
Income from discontinued operations | $ | 268 | $ | 1,452 | $ | 248 | $ | 7,550 | $ | 9,518 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | 444,727 | $ | 23,032 | $ | 25,771 | $ | 39,405 | $ | 532,935 | ||||||||||
(Loss) income before taxes | $ | (101,582 | ) | $ | (1,978 | ) | $ | (478 | ) | $ | 8,089 | $ | (95,949 | ) | ||||||
Loss on sale | — | (3,913 | ) | — | — | (3,913 | ) | |||||||||||||
(Loss) income before taxes | (101,582 | ) | (5,891 | ) | (478 | ) | 8,089 | (99,862 | ) | |||||||||||
Tax (benefit) provision | (19,407 | ) | (1,244 | ) | (134 | ) | 2,147 | (18,638 | ) | |||||||||||
(Loss) income from discontinued operations | $ | (82,175 | ) | $ | (4,647 | ) | $ | (344 | ) | $ | 5,942 | $ | (81,224 | ) | ||||||
The loss before income taxes for the three and six months ended June 30, 2013 for PBMS include 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. | ||||||||||||||||||||
Assets Held for Sale | ||||||||||||||||||||
Assets held for sale at June 30, 2014 and December 31, 2013 primarily represents the carrying value of our corporate headquarters building and surrounding land, which we expect to sell by the end of the year. | ||||||||||||||||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Intangible Assets and Goodwill | ' | |||||||||||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer relationships | $ | 351,291 | $ | (261,254 | ) | $ | 90,037 | $ | 354,373 | $ | (251,388 | ) | $ | 102,985 | ||||||||||
Supplier relationships | 29,000 | (26,463 | ) | 2,537 | 29,000 | (25,013 | ) | 3,987 | ||||||||||||||||
Software & technology | 167,691 | (158,411 | ) | 9,280 | 167,009 | (155,009 | ) | 12,000 | ||||||||||||||||
Trademarks & trade names | 34,447 | (33,566 | ) | 881 | 35,366 | (33,985 | ) | 1,381 | ||||||||||||||||
Non-compete agreements | 7,483 | (7,458 | ) | 25 | 7,407 | (7,373 | ) | 34 | ||||||||||||||||
Total intangible assets | $ | 589,912 | $ | (487,152 | ) | $ | 102,760 | $ | 593,155 | $ | (472,768 | ) | $ | 120,387 | ||||||||||
Amortization expense for intangible assets was $6 million and $9 million for the three months ended June 30, 2014 and 2013, respectively and $12 million and $18 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The future amortization expense for intangible assets as of June 30, 2014 was as follows: | ||||||||||||||||||||||||
Remaining for year ending December 31, 2014 | $ | 16,961 | ||||||||||||||||||||||
Year ending December 31, 2015 | 30,237 | |||||||||||||||||||||||
Year ending December 31, 2016 | 22,941 | |||||||||||||||||||||||
Year ending December 31, 2017 | 11,450 | |||||||||||||||||||||||
Year ending December 31, 2018 | 8,555 | |||||||||||||||||||||||
Thereafter | 12,616 | |||||||||||||||||||||||
Total | $ | 102,760 | ||||||||||||||||||||||
Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
As a result of the reclassification of our shipping solutions operations from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment, we reallocated goodwill on a relative fair value basis and performed the required goodwill impairment test during the first quarter of 2014. 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 value of goodwill for the six months ended June 30, 2014 were as follows: | ||||||||||||||||||||||||
Gross value before accumulated impairment (1) | Accumulated impairment | December 31, 2013 | Other (2) | June 30, | ||||||||||||||||||||
2014 | ||||||||||||||||||||||||
North America Mailing | $ | 326,665 | $ | — | $ | 326,665 | $ | (966 | ) | $ | 325,699 | |||||||||||||
International Mailing | 182,261 | — | 182,261 | (301 | ) | 181,960 | ||||||||||||||||||
Small & Medium Business Solutions | 508,926 | — | 508,926 | (1,267 | ) | 507,659 | ||||||||||||||||||
Production Mail | 118,060 | — | 118,060 | 382 | 118,442 | |||||||||||||||||||
Presort Services | 195,140 | — | 195,140 | — | 195,140 | |||||||||||||||||||
Enterprise Business Solutions | 313,200 | — | 313,200 | 382 | 313,582 | |||||||||||||||||||
Digital Commerce Solutions | 903,392 | — | 903,392 | 3,752 | 907,144 | |||||||||||||||||||
Discontinued operations | 9,353 | — | 9,353 | (9,353 | ) | — | ||||||||||||||||||
Balance at June 30, 2014 | $ | 1,734,871 | $ | — | $ | 1,734,871 | $ | (6,486 | ) | $ | 1,728,385 | |||||||||||||
-1 | Includes the reallocation of certain goodwill from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment and discontinued operations. | |||||||||||||||||||||||
-2 | Primarily represents the impact of foreign currency translation and the sale of DIS. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivative Instruments | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
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 June 30, 2014 and December 31, 2013. 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 its placement within the fair value hierarchy. | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 299,474 | $ | 201,606 | $ | — | $ | 501,080 | |||||||||||
Equity securities | — | 27,587 | — | 27,587 | |||||||||||||||
Commingled fixed income securities | — | 25,268 | — | 25,268 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 109,850 | 19,141 | — | 128,991 | |||||||||||||||
Debt securities - corporate | — | 60,555 | — | 60,555 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 148,339 | — | 148,339 | |||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | 932 | — | 932 | |||||||||||||||
Total assets | $ | 409,324 | $ | 483,428 | $ | — | $ | 892,752 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (3,509 | ) | $ | — | $ | (3,509 | ) | |||||||||
Total liabilities | $ | — | $ | (3,509 | ) | $ | — | $ | (3,509 | ) | |||||||||
December 31, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 403,706 | $ | 224,440 | $ | — | $ | 628,146 | |||||||||||
Equity securities | — | 26,536 | — | 26,536 | |||||||||||||||
Commingled fixed income securities | — | 24,695 | — | 24,695 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 122,783 | 17,653 | — | 140,436 | |||||||||||||||
Debt securities - corporate | — | 38,264 | — | 38,264 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 164,598 | — | 164,598 | |||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | 1,358 | — | 1,358 | |||||||||||||||
Total assets | $ | 526,489 | $ | 497,544 | $ | — | $ | 1,024,033 | |||||||||||
Liabilities: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Mortgage-backed securities | $ | — | $ | (4,445 | ) | $ | — | $ | (4,445 | ) | |||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||
Total liabilities | $ | — | $ | (7,454 | ) | $ | — | $ | (7,454 | ) | |||||||||
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 highly liquid and low-risk securities, including government securities, certificates of deposit and commercial paper. 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 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 in the unaudited 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 June 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | $ | 102,854 | $ | 1,986 | $ | (878 | ) | $ | 103,962 | ||||||||||
Debt securities - corporate | 58,914 | 1,771 | (130 | ) | 60,555 | ||||||||||||||
Mortgage-backed / asset-backed securities | 147,290 | 2,363 | (1,314 | ) | 148,339 | ||||||||||||||
Total | $ | 309,058 | $ | 6,120 | $ | (2,322 | ) | $ | 312,856 | ||||||||||
December 31, 2013 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | $ | 121,803 | $ | 999 | $ | (3,372 | ) | $ | 119,430 | ||||||||||
Debt securities - corporate | 37,901 | 935 | (572 | ) | 38,264 | ||||||||||||||
Mortgage-backed / asset-backed securities | 165,664 | 1,570 | (2,636 | ) | 164,598 | ||||||||||||||
Total | $ | 325,368 | $ | 3,504 | $ | (6,580 | ) | $ | 322,292 | ||||||||||
Scheduled maturities of available-for-sale securities at June 30, 2014 were as follows: | |||||||||||||||||||
Amortized cost | Estimated fair value | ||||||||||||||||||
Within 1 year | $ | 23,296 | $ | 23,356 | |||||||||||||||
After 1 year through 5 years | 47,382 | 48,261 | |||||||||||||||||
After 5 years through 10 years | 85,913 | 87,204 | |||||||||||||||||
After 10 years | 152,467 | 154,035 | |||||||||||||||||
Total | $ | 309,058 | $ | 312,856 | |||||||||||||||
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 fair value of derivative instruments at June 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Derivatives designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | $ | 603 | $ | 546 | |||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (303 | ) | (526 | ) | |||||||||||||||
Derivatives not designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | 329 | 812 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (3,206 | ) | (2,483 | ) | |||||||||||||||
Total derivative assets | $ | 932 | $ | 1,358 | |||||||||||||||
Total derivative liabilities | (3,509 | ) | (3,009 | ) | |||||||||||||||
Total net derivative liabilities | $ | (2,577 | ) | $ | (1,651 | ) | |||||||||||||
The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as forward rates. | |||||||||||||||||||
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. There were no interest rate swaps in effect during 2014. The following represents the results of fair value hedging relationships for the three and six months ended June 30, 2013: | |||||||||||||||||||
Derivative Gain (Loss) | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 774 | $ | 2,768 | $ | (2,742 | ) | $ | (8,227 | ) | ||||||||
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 June 30, 2014 and December 31, 2013, we had outstanding contracts associated with these anticipated transactions with a notional amount of $26 million. All outstanding contracts at June 30, 2014 mature within 12 months. | |||||||||||||||||||
The amounts included in AOCI at June 30, 2014 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 six months ended June 30, 2014 and 2013: | |||||||||||||||||||
Three Months Ended June 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign exchange contracts | $ | 17 | $ | 170 | Revenue | $ | (346 | ) | $ | (371 | ) | ||||||||
Cost of sales | 153 | 286 | |||||||||||||||||
$ | (193 | ) | $ | (85 | ) | ||||||||||||||
Six Months Ended June 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign exchange contracts | $ | (52 | ) | $ | 800 | Revenue | $ | (580 | ) | $ | (753 | ) | |||||||
Cost of sales | 352 | 412 | |||||||||||||||||
$ | (228 | ) | $ | (341 | ) | ||||||||||||||
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. All outstanding contracts at June 30, 2014 mature by the end of the year. | |||||||||||||||||||
The following represents the results of our non-designated derivative instruments for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||
Derivative Gain (Loss) Recognized in Earnings | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (2,622 | ) | $ | (1,644 | ) | $ | (3,304 | ) | $ | (5,995 | ) | ||||||
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 June 30, 2014, we were not required to post any collateral. The maximum amount of collateral that we would have been required to post at June 30, 2014, had the credit-risk-related contingent features been triggered, was $3 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 June 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||
Carrying value | $ | 3,239,722 | $ | 3,346,295 | |||||||||||||||
Fair value | $ | 3,475,702 | $ | 3,539,022 | |||||||||||||||
Restructuring_Charges
Restructuring Charges | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring Charges and Asset Impairments | ' | |||||||||||||||
Restructuring Charges | ||||||||||||||||
Activity in our restructuring reserves for the six months ended June 30, 2014 was as follows: | ||||||||||||||||
Severance and benefits costs | Pension and | Other exit | Total | |||||||||||||
Retiree | costs | |||||||||||||||
Medical | ||||||||||||||||
Balance at January 1, 2014 | $ | 58,558 | $ | — | $ | 8,014 | $ | 66,572 | ||||||||
Expenses, net | 11,760 | 3,372 | 3,008 | 18,140 | ||||||||||||
Cash payments | (26,071 | ) | (3,372 | ) | (4,087 | ) | (33,530 | ) | ||||||||
Balance at June 30, 2014 | $ | 44,247 | $ | — | $ | 6,935 | $ | 51,182 | ||||||||
The majority of the remaining restructuring reserves are expected to be paid over the next 12-24 months. Due to certain international labor laws and long-term lease agreements, some payments will extend beyond 24 months. We expect to fund these payments from cash flows from operations. |
Debt
Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
Debt consisted of the following: | |||||||||
June 30, | 31-Dec-13 | ||||||||
2014 | |||||||||
Term loans | $ | 130,000 | $ | 230,000 | |||||
5.00% | notes due 2015 | 274,879 | 274,879 | ||||||
4.75% | notes due 2016 | 370,914 | 370,914 | ||||||
5.75% | notes due 2017 | 385,109 | 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 | ||||||
4.63% | notes due 2024 | 500,000 | — | ||||||
5.25% | notes due 2037 | 115,041 | 500,000 | ||||||
6.70% | notes due 2043 | 425,000 | 425,000 | ||||||
Other | 28,779 | 35,502 | |||||||
Total long-term debt | 3,239,722 | 3,346,295 | |||||||
Current portion | 274,879 | — | |||||||
Long-term debt | $ | 2,964,843 | $ | 3,346,295 | |||||
During the first quarter of 2014, we completed a cash tender offer (the Tender Offer) for a portion of the 5.75% Notes due 2017 and the 5.25% Notes due 2037 (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 $500 million of the Subject Notes were tendered. We incurred expenses of $62 million, consisting of the call premium, the write-off of unamortized costs and bank transaction fees. These expenses are included in other expense in the unaudited Condensed Consolidated Statements of Income (Loss). | |||||||||
During the first quarter of 2014, we issued $500 million of 4.625% fixed rate 10-year notes. Interest is payable on March 15 and September 15 of each year, commencing September 15, 2014. The notes mature in March 2024, but may be redeemed, at any time, in whole or in part, at our option. If the notes are redeemed prior to December 15, 2023, the redemption price will be equal to the sum of 100% of the principal amount, accrued and unpaid interest and a make-whole payment. Net proceeds from the issuance of the notes were $493 million. The net proceeds were used to fund the Tender Offer. | |||||||||
During the second quarter of 2014, we repaid $100 million of the outstanding term loans. | |||||||||
Other consists of the unamortized net proceeds received from the unwinding of interest rate swaps, debt discounts and premiums and the mark-to-market adjustment of interest rate swaps, if applicable. | |||||||||
There were no commercial paper borrowings through June 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [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. | |
In December 2013, we received a Civil Investigative Demand (CID) from the Department of Justice (DOJ) pursuant to the False Claims Act requesting documents and information relating to compliance with certain postal regulatory requirements in our Presort Services business. We had previously provided information to the DOJ in response to letter requests and continue to provide information in response to the CID and other requests from the DOJ. Given the current stage of this inquiry, we cannot provide an estimate of any possible losses or range of loss and we cannot yet predict the ultimate outcome of this matter or its impact, if any, on our business, financial condition or results of operations. |
Noncontrolling_Interests_Prefe
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) | 6 Months Ended |
Jun. 30, 2014 | |
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 June 30, 2014 or December 31, 2013. There was no change in the carrying value of noncontrolling interests during the period ended June 30, 2014 or the year ended December 31, 2013. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Changes in stockholders’ equity for the six months ended June 30, 2014 and 2013 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, 2014 | $ | 4 | $ | 591 | $ | 323,338 | $ | 196,977 | $ | 4,715,564 | $ | (574,556 | ) | $ | (4,456,742 | ) | $ | 205,176 | ||||||||||||||
Net income | — | — | — | — | 138,938 | — | — | 138,938 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 15,205 | — | 15,205 | ||||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common | — | — | — | — | (75,974 | ) | — | — | (75,974 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (22 | ) | — | — | (22 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (24,212 | ) | — | — | 22,189 | (2,023 | ) | ||||||||||||||||||||||
Conversions to common stock | (3 | ) | (28 | ) | — | (656 | ) | — | — | 687 | — | |||||||||||||||||||||
Stock-based compensation expense | — | — | — | 7,976 | — | — | — | 7,976 | ||||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | — | — | — | (7,520 | ) | — | — | — | (7,520 | ) | ||||||||||||||||||||||
Balance at June 30, 2014 | $ | 1 | $ | 563 | $ | 323,338 | $ | 172,565 | $ | 4,778,506 | $ | (559,351 | ) | $ | (4,433,866 | ) | $ | 281,756 | ||||||||||||||
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 | ||||||||||||||
Retained earnings adjustment (see Note 15) | — | — | — | — | 16,773 | — | — | 16,773 | ||||||||||||||||||||||||
Adjusted balance at January 1, 2013 | 4 | 648 | 323,338 | 223,847 | 4,761,575 | (681,213 | ) | (4,500,795 | ) | 127,404 | ||||||||||||||||||||||
Net income | — | — | — | — | 58,273 | — | — | 58,273 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (42,310 | ) | — | (42,310 | ) | ||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common | — | — | — | — | (113,083 | ) | — | — | (113,083 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (23 | ) | — | — | (23 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (31,532 | ) | — | — | 33,144 | 1,612 | |||||||||||||||||||||||
Conversions to common stock | — | (35 | ) | — | (618 | ) | — | — | 653 | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 7,241 | — | — | — | 7,241 | ||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 4 | $ | 613 | $ | 323,338 | $ | 198,938 | $ | 4,706,742 | $ | (723,523 | ) | $ | (4,466,998 | ) | $ | 39,114 | ||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI (a) | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Losses on cash flow hedges | ||||||||||||||||||||
Revenue | $ | (346 | ) | $ | (371 | ) | $ | (580 | ) | $ | (753 | ) | ||||||||
Cost of sales | 153 | 286 | 352 | 412 | ||||||||||||||||
Interest expense | (507 | ) | (507 | ) | (1,014 | ) | (1,014 | ) | ||||||||||||
Total before tax | (700 | ) | (592 | ) | (1,242 | ) | (1,355 | ) | ||||||||||||
Tax benefit | 269 | 231 | 479 | 528 | ||||||||||||||||
Net of tax | $ | (431 | ) | $ | (361 | ) | $ | (763 | ) | $ | (827 | ) | ||||||||
Unrealized (losses) gains on available for sale securities | ||||||||||||||||||||
Interest income | $ | (505 | ) | $ | 10 | $ | (852 | ) | $ | (2,602 | ) | |||||||||
Tax benefit | 186 | (3 | ) | 314 | 963 | |||||||||||||||
Net of tax | $ | (319 | ) | $ | 7 | $ | (538 | ) | $ | (1,639 | ) | |||||||||
Pension and Postretirement Benefit Plans (b) | ||||||||||||||||||||
Transition credit | $ | 3 | $ | 2 | $ | 5 | $ | 4 | ||||||||||||
Prior service costs | (27 | ) | (163 | ) | (54 | ) | (361 | ) | ||||||||||||
Actuarial losses | (9,869 | ) | (14,156 | ) | (19,627 | ) | (31,902 | ) | ||||||||||||
Total before tax | (9,893 | ) | (14,317 | ) | (19,676 | ) | (32,259 | ) | ||||||||||||
Tax benefit | 3,613 | 4,926 | 7,254 | 11,266 | ||||||||||||||||
Net of tax | $ | (6,280 | ) | $ | (9,391 | ) | $ | (12,422 | ) | $ | (20,993 | ) | ||||||||
(a) 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 14 for additional details). | |||||||||||||||||||
Changes in accumulated other comprehensive loss for the six months ended June 30, 2014 and 2013 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, 2014 | $ | (6,380 | ) | $ | (1,769 | ) | $ | (601,421 | ) | $ | 35,014 | $ | (574,556 | ) | ||||||
Other comprehensive income (loss) before reclassifications (a) | 27 | 3,657 | — | (2,202 | ) | 1,482 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 763 | 538 | 12,422 | — | 13,723 | |||||||||||||||
Net current period other comprehensive income (loss) | 790 | 4,195 | 12,422 | (2,202 | ) | 15,205 | ||||||||||||||
Balance at June 30, 2014 | $ | (5,590 | ) | $ | 2,426 | $ | (588,999 | ) | $ | 32,812 | $ | (559,351 | ) | |||||||
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) | 73 | (6,084 | ) | — | (62,317 | ) | (68,328 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 827 | 1,639 | 20,993 | 2,559 | 26,018 | |||||||||||||||
Net current period other comprehensive income (loss) | 900 | (4,445 | ) | 20,993 | (59,758 | ) | (42,310 | ) | ||||||||||||
Balance at June 30, 2013 | $ | (6,877 | ) | $ | 68 | $ | (738,206 | ) | $ | 21,492 | $ | (723,523 | ) | |||||||
(a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | ||||||||||||||||||||
(b) See table above for additional details of these reclassifications. |
Pensions_and_Other_Benefit_Pro
Pensions and Other Benefit Programs | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [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 June 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2,023 | $ | 3,494 | $ | 913 | $ | 2,139 | ||||||||
Interest cost | 19,416 | 18,534 | 7,276 | 11,627 | ||||||||||||
Expected return on plan assets | (25,956 | ) | (27,041 | ) | (9,980 | ) | (13,886 | ) | ||||||||
Amortization of transition credit | — | — | (3 | ) | (2 | ) | ||||||||||
Amortization of prior service cost (credit) | 2 | 94 | (15 | ) | 28 | |||||||||||
Amortization of net actuarial loss | 6,264 | 7,507 | 2,103 | 4,290 | ||||||||||||
Settlement | — | 1,416 | — | — | ||||||||||||
Special termination benefits | — | 548 | — | — | ||||||||||||
Net periodic benefit cost | $ | 1,749 | $ | 4,552 | $ | 294 | $ | 4,196 | ||||||||
Six Months Ended June 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 4,438 | $ | 7,293 | $ | 1,821 | $ | 4,312 | ||||||||
Interest cost | 38,832 | 36,905 | 14,445 | 23,376 | ||||||||||||
Expected return on plan assets | (51,912 | ) | (54,127 | ) | (19,805 | ) | (27,921 | ) | ||||||||
Amortization of transition credit | — | — | (5 | ) | (4 | ) | ||||||||||
Amortization of prior service cost (credit) | 4 | 223 | (30 | ) | 56 | |||||||||||
Amortization of net actuarial loss | 12,424 | 18,544 | 4,179 | 8,638 | ||||||||||||
Settlement | — | 1,416 | — | — | ||||||||||||
Special termination benefits | — | 548 | — | — | ||||||||||||
Curtailment | — | 814 | — | — | ||||||||||||
Net periodic benefit cost | $ | 3,786 | $ | 11,616 | $ | 605 | $ | 8,457 | ||||||||
Through June 30, 2014, we contributed $14 million to both our U.S. and foreign pension plans and through June 30, 2013, we contributed $7 million to both our U.S. and 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 697 | $ | 1,014 | $ | 1,425 | $ | 2,031 | ||||||||
Interest cost | 2,480 | 2,510 | 4,942 | 5,024 | ||||||||||||
Amortization of prior service cost | 40 | 41 | 80 | 82 | ||||||||||||
Amortization of net actuarial loss | 1,502 | 2,359 | 3,024 | 4,720 | ||||||||||||
Net periodic benefit cost | $ | 4,719 | $ | 5,924 | $ | 9,471 | $ | 11,857 | ||||||||
Contributions for benefit payments for nonpension postretirement benefit plans were $12 million and $16 million for the six months ended June 30, 2014 and 2013, respectively. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective tax rate for the three months ended June 30, 2014 and 2013 was 33.5% and 22.3%, respectively, and the effective tax rate for the six months ended June 30, 2014 and 2013 was 28.2% and 22.0%, respectively. The effective tax rate for the six months ended June 30, 2014 includes a benefit of $6 million from the resolution of tax examinations and an incremental tax benefit associated with the early extinguishment of debt. The effective tax rate for the three and six months ended June 30, 2013 includes tax benefits of $7 million related to one-time tax planning initiatives and $4 million from the adjustment of non-U.S. tax accounts. The effective tax rate for the six months ended June 30, 2013 also includes a benefit of $4 million from the retroactive effect of 2013 U.S. tax legislation. | |
During 2014, we determined that certain pre-2009 tax deductions associated with software development expenditures had not been deducted on our tax returns, the expenditures could be claimed on our current year return and our deferred tax liability was overstated. We assessed the materiality of this item on previously issued financial statements and concluded that it was not material to any annual or interim period. However, due to the impact of this error on the current year consolidated financial statements, the accompanying unaudited Condensed Consolidated Balance Sheet has been revised for the earliest period presented to increase opening retained earnings by $17 million (see Note 12) and decrease our tax liabilities. | |
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. Except for issues arising out of certain partnership investments, the IRS examinations of tax years prior to 2009 are closed to audit. Other than the pending application of legal principles to specific issues arising in earlier years, only post-2007 Canadian tax years are subject to examination. Other significant tax filings subject to examination include various post-2004 U.S. state and local, post-2007 German, and post-2011 French and U.K. tax filings. We have other less significant tax filings currently under examination or subject to examination. | |
In August 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. In January 2014, the Tax Court entered an order to implement rulings of the Third Circuit. Under the terms of the partnership agreement, we are indemnified against any payments we may be required to make. 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. Further, if we do not recover under the indemnification provisions of the partnership agreement, the amount of tax and interest due as a result of this matter could be as much as $100 million. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The calculations of basic and diluted earnings per share are presented below: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to common stockholders: | ||||||||||||||||
Net income from continuing operations | $ | 87,548 | $ | 80,021 | $ | 129,420 | $ | 139,497 | ||||||||
Income (loss) from discontinued operations | 6,717 | (89,254 | ) | 9,518 | (81,224 | ) | ||||||||||
Net income (loss) - Pitney Bowes Inc. (numerator for diluted EPS) | 94,265 | (9,233 | ) | 138,938 | 58,273 | |||||||||||
Less: Preference stock dividend | (11 | ) | (13 | ) | (22 | ) | (23 | ) | ||||||||
Income (loss) attributable to common stockholders (numerator for basic EPS) | $ | 94,254 | $ | (9,246 | ) | $ | 138,916 | $ | 58,250 | |||||||
Denominator (in thousands): | ||||||||||||||||
Weighted-average shares used in basic EPS | 202,662 | 201,567 | 202,480 | 201,342 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Preferred stock | 1 | 2 | 1 | 2 | ||||||||||||
Preference stock | 344 | 387 | 348 | 390 | ||||||||||||
Stock plans | 1,463 | 847 | 1,272 | 646 | ||||||||||||
Weighted-average shares used in diluted EPS | 204,470 | 202,803 | 204,101 | 202,380 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.4 | $ | 0.64 | $ | 0.69 | ||||||||
Discontinued operations | 0.03 | (0.44 | ) | 0.05 | (0.40 | ) | ||||||||||
Net income (loss) | $ | 0.47 | $ | (0.05 | ) | $ | 0.69 | $ | 0.29 | |||||||
Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.39 | $ | 0.63 | $ | 0.69 | ||||||||
Discontinued operations | 0.03 | (0.44 | ) | 0.05 | (0.40 | ) | ||||||||||
Net income (loss) | $ | 0.46 | $ | (0.05 | ) | $ | 0.68 | $ | 0.29 | |||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands): | 6,062 | 12,673 | 7,943 | 12,881 | ||||||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The new standard requires companies to recognize revenue for the transfer of goods and services to customers in amounts that reflect the consideration the company expects to receive in exchange for those goods and services. The new standard will also result in enhanced disclosures about revenue. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and can be adopted either retrospectively or as a cumulative-effect adjustment. Early adoption is prohibited. We are assessing the impact the adoption of this standard will have on our consolidated financial statements and disclosures. | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The standard is effective on January 1, 2015, but early adoption is permitted for disposals or classifications of assets held for sale that have not been reported in financial statements previously issued or available for issuance. We elected to adopt this standard effective April 1, 2014. The adoption of this standard did not have a significant impact on our unaudited Condensed Consolidated Financial Statements. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reconciliation of Revenue from Segments to Consolidated Statements | ' | |||||||||||||||
Revenue and EBIT by business segment is presented below. | ||||||||||||||||
Revenues | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America Mailing | $ | 371,194 | $ | 392,197 | $ | 752,221 | $ | 781,033 | ||||||||
International Mailing | 153,260 | 150,357 | 306,528 | 303,333 | ||||||||||||
Small & Medium Business Solutions | 524,454 | 542,554 | 1,058,749 | 1,084,366 | ||||||||||||
Production Mail | 111,756 | 134,422 | 216,972 | 243,875 | ||||||||||||
Presort Services | 111,281 | 106,961 | 227,772 | 217,861 | ||||||||||||
Enterprise Business Solutions | 223,037 | 241,383 | 444,744 | 461,736 | ||||||||||||
Digital Commerce Solutions | 210,959 | 166,725 | 392,454 | 313,923 | ||||||||||||
Total revenue | $ | 958,450 | $ | 950,662 | $ | 1,895,947 | $ | 1,860,025 | ||||||||
Reconciliation of EBIT from Segments to Consolidated | ' | |||||||||||||||
EBIT | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America Mailing | $ | 156,781 | $ | 157,518 | $ | 317,119 | $ | 305,976 | ||||||||
International Mailing | 26,449 | 20,075 | 51,268 | 37,465 | ||||||||||||
Small & Medium Business Solutions | 183,230 | 177,593 | 368,387 | 343,441 | ||||||||||||
Production Mail | 10,558 | 15,787 | 18,295 | 23,619 | ||||||||||||
Presort Services | 22,412 | 21,246 | 46,308 | 44,734 | ||||||||||||
Enterprise Business Solutions | 32,970 | 37,033 | 64,603 | 68,353 | ||||||||||||
Digital Commerce Solutions | 17,929 | 15,363 | 27,460 | 15,084 | ||||||||||||
Total EBIT | 234,129 | 229,989 | 460,450 | 426,878 | ||||||||||||
Reconciling items: | ||||||||||||||||
Interest, net (1) | (41,895 | ) | (48,996 | ) | (85,612 | ) | (97,006 | ) | ||||||||
Unallocated corporate expenses | (45,458 | ) | (53,129 | ) | (102,062 | ) | (95,022 | ) | ||||||||
Restructuring charges | (8,299 | ) | (19,031 | ) | (18,140 | ) | (19,031 | ) | ||||||||
Other expense | — | — | (61,657 | ) | (25,121 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 138,477 | $ | 108,833 | $ | 192,979 | $ | 190,698 | ||||||||
(1) Includes financing interest expense and other interest expense, net. | ||||||||||||||||
Finance_Assets_Tables
Finance Assets (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||
Financing Receivables | ' | |||||||||||||||||||
Finance receivables at June 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,320,426 | $ | 444,861 | $ | 1,765,287 | ||||||||||||||
Unguaranteed residual values | 110,195 | 21,512 | 131,707 | |||||||||||||||||
Unearned income | (278,782 | ) | (100,561 | ) | (379,343 | ) | ||||||||||||||
Allowance for credit losses | (13,143 | ) | (7,604 | ) | (20,747 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,138,696 | 358,208 | 1,496,904 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 383,532 | 56,050 | 439,582 | |||||||||||||||||
Allowance for credit losses | (10,775 | ) | (2,149 | ) | (12,924 | ) | ||||||||||||||
Net investment in loan receivables | 372,757 | 53,901 | 426,658 | |||||||||||||||||
Net investment in finance receivables | $ | 1,511,453 | $ | 412,109 | $ | 1,923,562 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
North America | International | Total | ||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Gross finance receivables | $ | 1,456,420 | $ | 456,759 | $ | 1,913,179 | ||||||||||||||
Unguaranteed residual values | 121,339 | 21,553 | 142,892 | |||||||||||||||||
Unearned income | (299,396 | ) | (101,311 | ) | (400,707 | ) | ||||||||||||||
Allowance for credit losses | (14,165 | ) | (9,703 | ) | (23,868 | ) | ||||||||||||||
Net investment in sales-type lease receivables | 1,264,198 | 367,298 | 1,631,496 | |||||||||||||||||
Loan receivables | ||||||||||||||||||||
Loan receivables | 397,815 | 49,054 | 446,869 | |||||||||||||||||
Allowance for credit losses | (11,165 | ) | (1,916 | ) | (13,081 | ) | ||||||||||||||
Net investment in loan receivables | 386,650 | 47,138 | 433,788 | |||||||||||||||||
Net investment in finance receivables | $ | 1,650,848 | $ | 414,436 | $ | 2,065,284 | ||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||||
Activity in the allowance for credit losses for the six months ended June 30, 2014 and 2013 was as follows: | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
Balance at January 1, 2014 | $ | 14,165 | $ | 9,703 | $ | 11,165 | $ | 1,916 | $ | 36,949 | ||||||||||
Amounts charged to expense | 2,360 | (350 | ) | 4,742 | 1,034 | 7,786 | ||||||||||||||
Accounts written off | (3,382 | ) | (1,749 | ) | (5,132 | ) | (801 | ) | (11,064 | ) | ||||||||||
Balance at June 30, 2014 | $ | 13,143 | $ | 7,604 | $ | 10,775 | $ | 2,149 | $ | 33,671 | ||||||||||
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 | 3,022 | 784 | 4,625 | 524 | 8,955 | |||||||||||||||
Accounts written off | (4,397 | ) | (2,268 | ) | (5,388 | ) | (895 | ) | (12,948 | ) | ||||||||||
Balance at June 30, 2013 | $ | 15,604 | $ | 7,178 | $ | 11,559 | $ | 1,760 | $ | 36,101 | ||||||||||
Past Due Financing Receivables | ' | |||||||||||||||||||
The aging of gross finance receivables at June 30, 2014 and December 31, 2013 was as follows: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,248,259 | $ | 412,514 | $ | 365,972 | $ | 53,933 | $ | 2,080,678 | ||||||||||
> 30 days and < 61 days | 29,229 | 9,627 | 10,132 | 1,176 | 50,164 | |||||||||||||||
> 60 days and < 91 days | 20,140 | 6,542 | 2,919 | 485 | 30,086 | |||||||||||||||
> 90 days and < 121 days | 6,540 | 4,578 | 1,887 | 224 | 13,229 | |||||||||||||||
> 120 days | 16,258 | 11,600 | 2,622 | 232 | 30,712 | |||||||||||||||
Total | $ | 1,320,426 | $ | 444,861 | $ | 383,532 | $ | 56,050 | $ | 2,204,869 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,540 | $ | 4,578 | $ | — | $ | — | $ | 11,118 | ||||||||||
Not accruing interest | 16,258 | 11,600 | 4,509 | 456 | 32,823 | |||||||||||||||
Total | $ | 22,798 | $ | 16,178 | $ | 4,509 | $ | 456 | $ | 43,941 | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Sales-type Lease Receivables | Loan Receivables | |||||||||||||||||||
North | International | North | International | Total | ||||||||||||||||
America | America | |||||||||||||||||||
< 31 days | $ | 1,383,253 | $ | 425,923 | $ | 379,502 | $ | 42,573 | $ | 2,231,251 | ||||||||||
> 30 days and < 61 days | 32,102 | 11,760 | 10,464 | 4,391 | 58,717 | |||||||||||||||
> 60 days and < 91 days | 20,830 | 5,724 | 3,330 | 1,363 | 31,247 | |||||||||||||||
> 90 days and < 121 days | 6,413 | 3,979 | 1,809 | 311 | 12,512 | |||||||||||||||
> 120 days | 13,822 | 9,373 | 2,710 | 416 | 26,321 | |||||||||||||||
Total | $ | 1,456,420 | $ | 456,759 | $ | 397,815 | $ | 49,054 | $ | 2,360,048 | ||||||||||
Past due amounts > 90 days | ||||||||||||||||||||
Still accruing interest | $ | 6,413 | $ | 3,979 | $ | — | $ | — | $ | 10,392 | ||||||||||
Not accruing interest | 13,822 | 9,373 | 4,519 | 727 | 28,441 | |||||||||||||||
Total | $ | 20,235 | $ | 13,352 | $ | 4,519 | $ | 727 | $ | 38,833 | ||||||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Sales-type lease receivables | ||||||||||||||||||||
Low | $ | 988,555 | $ | 1,081,853 | ||||||||||||||||
Medium | 225,106 | 244,379 | ||||||||||||||||||
High | 47,293 | 51,851 | ||||||||||||||||||
Not Scored | 59,472 | 78,337 | ||||||||||||||||||
Total | $ | 1,320,426 | $ | 1,456,420 | ||||||||||||||||
Loan receivables | ||||||||||||||||||||
Low | $ | 263,924 | $ | 279,607 | ||||||||||||||||
Medium | 93,594 | 95,524 | ||||||||||||||||||
High | 10,968 | 11,511 | ||||||||||||||||||
Not Scored | 15,046 | 11,173 | ||||||||||||||||||
Total | $ | 383,532 | $ | 397,815 | ||||||||||||||||
Schedule of Components of Leveraged Lease Investments | ' | |||||||||||||||||||
Our investment in leveraged lease assets at June 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Rental receivables | $ | 53,051 | $ | 61,721 | ||||||||||||||||
Unguaranteed residual values | 13,181 | 13,235 | ||||||||||||||||||
Principal and interest on non-recourse loans | (29,023 | ) | (35,449 | ) | ||||||||||||||||
Unearned income | (3,778 | ) | (5,097 | ) | ||||||||||||||||
Investment in leveraged leases | 33,431 | 34,410 | ||||||||||||||||||
Less: deferred taxes related to leveraged leases | (13,245 | ) | (15,078 | ) | ||||||||||||||||
Net investment in leveraged leases | $ | 20,186 | $ | 19,332 | ||||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Components | ' | |||||||
Inventories consisted of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials and work in process | $ | 35,723 | $ | 33,920 | ||||
Supplies and service parts | 45,045 | 48,165 | ||||||
Finished products | 35,218 | 38,515 | ||||||
Inventory at FIFO cost | 115,986 | 120,600 | ||||||
Excess of FIFO cost over LIFO cost | (14,734 | ) | (17,020 | ) | ||||
Total inventory, net | $ | 101,252 | $ | 103,580 | ||||
Discontinued_Operations_and_As1
Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||
Schedule of Discontinued Operations, Income Statement and Balance Sheet Items | ' | |||||||||||||||||||
The following tables show selected financial information included in discontinued operations: | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 3,567 | $ | 3,567 | ||||||||||
Income from operations before taxes | $ | 580 | $ | — | $ | — | $ | 1,018 | $ | 1,598 | ||||||||||
Gain on sale | — | 831 | — | 25,198 | 26,029 | |||||||||||||||
Income before taxes | 580 | 831 | — | 26,216 | 27,627 | |||||||||||||||
Tax provision | 217 | 321 | — | 20,372 | 20,910 | |||||||||||||||
Income from discontinued operations | $ | 363 | $ | 510 | $ | — | $ | 5,844 | $ | 6,717 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | 219,471 | $ | 2,964 | $ | 13,082 | $ | 19,755 | $ | 255,272 | ||||||||||
(Loss) income from operations before taxes | $ | (117,636 | ) | $ | (378 | ) | $ | (597 | ) | $ | 4,418 | $ | (114,193 | ) | ||||||
Loss on sale | — | (2,263 | ) | — | — | (2,263 | ) | |||||||||||||
(Loss) income before taxes | (117,636 | ) | (2,641 | ) | (597 | ) | 4,418 | (116,456 | ) | |||||||||||
Tax (benefit) provision | (28,153 | ) | (55 | ) | (167 | ) | 1,173 | (27,202 | ) | |||||||||||
(Loss) income from discontinued operations | $ | (89,483 | ) | $ | (2,586 | ) | $ | (430 | ) | $ | 3,245 | $ | (89,254 | ) | ||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 19,858 | $ | 19,858 | ||||||||||
Income from operations before taxes | $ | 334 | $ | 308 | $ | 345 | $ | 3,429 | $ | 4,416 | ||||||||||
Gain on sale | 130 | 1,994 | — | 25,198 | 27,322 | |||||||||||||||
Income before taxes | 464 | 2,302 | 345 | 28,627 | 31,738 | |||||||||||||||
Tax provision | 196 | 850 | 97 | 21,077 | 22,220 | |||||||||||||||
Income from discontinued operations | $ | 268 | $ | 1,452 | $ | 248 | $ | 7,550 | $ | 9,518 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
PBMS | IMS | Nordic furniture business | DIS | Total | ||||||||||||||||
Revenue | $ | 444,727 | $ | 23,032 | $ | 25,771 | $ | 39,405 | $ | 532,935 | ||||||||||
(Loss) income before taxes | $ | (101,582 | ) | $ | (1,978 | ) | $ | (478 | ) | $ | 8,089 | $ | (95,949 | ) | ||||||
Loss on sale | — | (3,913 | ) | — | — | (3,913 | ) | |||||||||||||
(Loss) income before taxes | (101,582 | ) | (5,891 | ) | (478 | ) | 8,089 | (99,862 | ) | |||||||||||
Tax (benefit) provision | (19,407 | ) | (1,244 | ) | (134 | ) | 2,147 | (18,638 | ) | |||||||||||
(Loss) income from discontinued operations | $ | (82,175 | ) | $ | (4,647 | ) | $ | (344 | ) | $ | 5,942 | $ | (81,224 | ) | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Intangible Assets Disclosure | ' | |||||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer relationships | $ | 351,291 | $ | (261,254 | ) | $ | 90,037 | $ | 354,373 | $ | (251,388 | ) | $ | 102,985 | ||||||||||
Supplier relationships | 29,000 | (26,463 | ) | 2,537 | 29,000 | (25,013 | ) | 3,987 | ||||||||||||||||
Software & technology | 167,691 | (158,411 | ) | 9,280 | 167,009 | (155,009 | ) | 12,000 | ||||||||||||||||
Trademarks & trade names | 34,447 | (33,566 | ) | 881 | 35,366 | (33,985 | ) | 1,381 | ||||||||||||||||
Non-compete agreements | 7,483 | (7,458 | ) | 25 | 7,407 | (7,373 | ) | 34 | ||||||||||||||||
Total intangible assets | $ | 589,912 | $ | (487,152 | ) | $ | 102,760 | $ | 593,155 | $ | (472,768 | ) | $ | 120,387 | ||||||||||
Amortization Expense In Future Periods | ' | |||||||||||||||||||||||
The future amortization expense for intangible assets as of June 30, 2014 was as follows: | ||||||||||||||||||||||||
Remaining for year ending December 31, 2014 | $ | 16,961 | ||||||||||||||||||||||
Year ending December 31, 2015 | 30,237 | |||||||||||||||||||||||
Year ending December 31, 2016 | 22,941 | |||||||||||||||||||||||
Year ending December 31, 2017 | 11,450 | |||||||||||||||||||||||
Year ending December 31, 2018 | 8,555 | |||||||||||||||||||||||
Thereafter | 12,616 | |||||||||||||||||||||||
Total | $ | 102,760 | ||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying value of goodwill for the six months ended June 30, 2014 were as follows: | ||||||||||||||||||||||||
Gross value before accumulated impairment (1) | Accumulated impairment | December 31, 2013 | Other (2) | June 30, | ||||||||||||||||||||
2014 | ||||||||||||||||||||||||
North America Mailing | $ | 326,665 | $ | — | $ | 326,665 | $ | (966 | ) | $ | 325,699 | |||||||||||||
International Mailing | 182,261 | — | 182,261 | (301 | ) | 181,960 | ||||||||||||||||||
Small & Medium Business Solutions | 508,926 | — | 508,926 | (1,267 | ) | 507,659 | ||||||||||||||||||
Production Mail | 118,060 | — | 118,060 | 382 | 118,442 | |||||||||||||||||||
Presort Services | 195,140 | — | 195,140 | — | 195,140 | |||||||||||||||||||
Enterprise Business Solutions | 313,200 | — | 313,200 | 382 | 313,582 | |||||||||||||||||||
Digital Commerce Solutions | 903,392 | — | 903,392 | 3,752 | 907,144 | |||||||||||||||||||
Discontinued operations | 9,353 | — | 9,353 | (9,353 | ) | — | ||||||||||||||||||
Balance at June 30, 2014 | $ | 1,734,871 | $ | — | $ | 1,734,871 | $ | (6,486 | ) | $ | 1,728,385 | |||||||||||||
-1 | Includes the reallocation of certain goodwill from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment and discontinued operations. | |||||||||||||||||||||||
-2 | Primarily represents the impact of foreign currency translation and the sale of DIS. |
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivative Instruments (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||
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 June 30, 2014 and December 31, 2013. 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 its placement within the fair value hierarchy. | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 299,474 | $ | 201,606 | $ | — | $ | 501,080 | |||||||||||
Equity securities | — | 27,587 | — | 27,587 | |||||||||||||||
Commingled fixed income securities | — | 25,268 | — | 25,268 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 109,850 | 19,141 | — | 128,991 | |||||||||||||||
Debt securities - corporate | — | 60,555 | — | 60,555 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 148,339 | — | 148,339 | |||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | 932 | — | 932 | |||||||||||||||
Total assets | $ | 409,324 | $ | 483,428 | $ | — | $ | 892,752 | |||||||||||
Liabilities: | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (3,509 | ) | $ | — | $ | (3,509 | ) | |||||||||
Total liabilities | $ | — | $ | (3,509 | ) | $ | — | $ | (3,509 | ) | |||||||||
December 31, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Money market funds / commercial paper | $ | 403,706 | $ | 224,440 | $ | — | $ | 628,146 | |||||||||||
Equity securities | — | 26,536 | — | 26,536 | |||||||||||||||
Commingled fixed income securities | — | 24,695 | — | 24,695 | |||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | 122,783 | 17,653 | — | 140,436 | |||||||||||||||
Debt securities - corporate | — | 38,264 | — | 38,264 | |||||||||||||||
Mortgage-backed / asset-backed securities | — | 164,598 | — | 164,598 | |||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | 1,358 | — | 1,358 | |||||||||||||||
Total assets | $ | 526,489 | $ | 497,544 | $ | — | $ | 1,024,033 | |||||||||||
Liabilities: | |||||||||||||||||||
Investment securities | |||||||||||||||||||
Mortgage-backed securities | $ | — | $ | (4,445 | ) | $ | — | $ | (4,445 | ) | |||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||
Total liabilities | $ | — | $ | (7,454 | ) | $ | — | $ | (7,454 | ) | |||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||
Available-for-sale securities at June 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | $ | 102,854 | $ | 1,986 | $ | (878 | ) | $ | 103,962 | ||||||||||
Debt securities - corporate | 58,914 | 1,771 | (130 | ) | 60,555 | ||||||||||||||
Mortgage-backed / asset-backed securities | 147,290 | 2,363 | (1,314 | ) | 148,339 | ||||||||||||||
Total | $ | 309,058 | $ | 6,120 | $ | (2,322 | ) | $ | 312,856 | ||||||||||
December 31, 2013 | |||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||
Debt securities - U.S. and foreign governments, agencies and municipalities | $ | 121,803 | $ | 999 | $ | (3,372 | ) | $ | 119,430 | ||||||||||
Debt securities - corporate | 37,901 | 935 | (572 | ) | 38,264 | ||||||||||||||
Mortgage-backed / asset-backed securities | 165,664 | 1,570 | (2,636 | ) | 164,598 | ||||||||||||||
Total | $ | 325,368 | $ | 3,504 | $ | (6,580 | ) | $ | 322,292 | ||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||
Scheduled maturities of available-for-sale securities at June 30, 2014 were as follows: | |||||||||||||||||||
Amortized cost | Estimated fair value | ||||||||||||||||||
Within 1 year | $ | 23,296 | $ | 23,356 | |||||||||||||||
After 1 year through 5 years | 47,382 | 48,261 | |||||||||||||||||
After 5 years through 10 years | 85,913 | 87,204 | |||||||||||||||||
After 10 years | 152,467 | 154,035 | |||||||||||||||||
Total | $ | 309,058 | $ | 312,856 | |||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Derivatives designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | $ | 603 | $ | 546 | |||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (303 | ) | (526 | ) | |||||||||||||||
Derivatives not designated as | Other current assets and prepayments: | ||||||||||||||||||
hedging instruments | |||||||||||||||||||
Foreign exchange contracts | 329 | 812 | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||||
Foreign exchange contracts | (3,206 | ) | (2,483 | ) | |||||||||||||||
Total derivative assets | $ | 932 | $ | 1,358 | |||||||||||||||
Total derivative liabilities | (3,509 | ) | (3,009 | ) | |||||||||||||||
Total net derivative liabilities | $ | (2,577 | ) | $ | (1,651 | ) | |||||||||||||
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Derivative Gain (Loss) | Hedged Item Expense | ||||||||||||||||||
Recognized in Earnings | Recognized in Earnings | ||||||||||||||||||
Derivative Instrument | Location of Gain (Loss) | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 774 | $ | 2,768 | $ | (2,742 | ) | $ | (8,227 | ) | ||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Three Months Ended June 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign exchange contracts | $ | 17 | $ | 170 | Revenue | $ | (346 | ) | $ | (371 | ) | ||||||||
Cost of sales | 153 | 286 | |||||||||||||||||
$ | (193 | ) | $ | (85 | ) | ||||||||||||||
Six Months Ended June 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign exchange contracts | $ | (52 | ) | $ | 800 | Revenue | $ | (580 | ) | $ | (753 | ) | |||||||
Cost of sales | 352 | 412 | |||||||||||||||||
$ | (228 | ) | $ | (341 | ) | ||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
Derivative Gain (Loss) Recognized in Earnings | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
Derivatives Instrument | Location of Derivative Gain (Loss) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign exchange contracts | Selling, general and administrative expense | $ | (2,622 | ) | $ | (1,644 | ) | $ | (3,304 | ) | $ | (5,995 | ) | ||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||
The carrying value and estimated fair value of our debt at June 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||
Carrying value | $ | 3,239,722 | $ | 3,346,295 | |||||||||||||||
Fair value | $ | 3,475,702 | $ | 3,539,022 | |||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
Activity in our restructuring reserves for the six months ended June 30, 2014 was as follows: | ||||||||||||||||
Severance and benefits costs | Pension and | Other exit | Total | |||||||||||||
Retiree | costs | |||||||||||||||
Medical | ||||||||||||||||
Balance at January 1, 2014 | $ | 58,558 | $ | — | $ | 8,014 | $ | 66,572 | ||||||||
Expenses, net | 11,760 | 3,372 | 3,008 | 18,140 | ||||||||||||
Cash payments | (26,071 | ) | (3,372 | ) | (4,087 | ) | (33,530 | ) | ||||||||
Balance at June 30, 2014 | $ | 44,247 | $ | — | $ | 6,935 | $ | 51,182 | ||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
Debt consisted of the following: | |||||||||
June 30, | 31-Dec-13 | ||||||||
2014 | |||||||||
Term loans | $ | 130,000 | $ | 230,000 | |||||
5.00% | notes due 2015 | 274,879 | 274,879 | ||||||
4.75% | notes due 2016 | 370,914 | 370,914 | ||||||
5.75% | notes due 2017 | 385,109 | 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 | ||||||
4.63% | notes due 2024 | 500,000 | — | ||||||
5.25% | notes due 2037 | 115,041 | 500,000 | ||||||
6.70% | notes due 2043 | 425,000 | 425,000 | ||||||
Other | 28,779 | 35,502 | |||||||
Total long-term debt | 3,239,722 | 3,346,295 | |||||||
Current portion | 274,879 | — | |||||||
Long-term debt | $ | 2,964,843 | $ | 3,346,295 | |||||
During the first quarter of 2014, we completed a cash tender offer (the Tender Offer) for a portion of the 5.75% Notes due 2017 and the 5.25% Notes due 2037 (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 $500 million of the Subject Notes were tendered. We incurred expenses of $62 million, consisting of the call premium, the write-off of unamortized costs and bank transaction fees. These expenses are included in other expense in the unaudited Condensed Consolidated Statements of Income (Loss). | |||||||||
During the first quarter of 2014, we issued $500 million of 4.625% fixed rate 10-year notes. Interest is payable on March 15 and September 15 of each year, commencing September 15, 2014. The notes mature in March 2024, but may be redeemed, at any time, in whole or in part, at our option. If the notes are redeemed prior to December 15, 2023, the redemption price will be equal to the sum of 100% of the principal amount, accrued and unpaid interest and a make-whole payment. Net proceeds from the issuance of the notes were $493 million. The net proceeds were used to fund the Tender Offer. | |||||||||
During the second quarter of 2014, we repaid $100 million of the outstanding term loans. | |||||||||
Other consists of the unamortized net proceeds received from the unwinding of interest rate swaps, debt discounts and premiums and the mark-to-market adjustment of interest rate swaps, if applicable. | |||||||||
There were no commercial paper borrowings through June 30, 2014. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | |||||||||||||||||||||||||||||||
Changes in stockholders’ equity for the six months ended June 30, 2014 and 2013 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, 2014 | $ | 4 | $ | 591 | $ | 323,338 | $ | 196,977 | $ | 4,715,564 | $ | (574,556 | ) | $ | (4,456,742 | ) | $ | 205,176 | ||||||||||||||
Net income | — | — | — | — | 138,938 | — | — | 138,938 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 15,205 | — | 15,205 | ||||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common | — | — | — | — | (75,974 | ) | — | — | (75,974 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (22 | ) | — | — | (22 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (24,212 | ) | — | — | 22,189 | (2,023 | ) | ||||||||||||||||||||||
Conversions to common stock | (3 | ) | (28 | ) | — | (656 | ) | — | — | 687 | — | |||||||||||||||||||||
Stock-based compensation expense | — | — | — | 7,976 | — | — | — | 7,976 | ||||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | — | — | — | (7,520 | ) | — | — | — | (7,520 | ) | ||||||||||||||||||||||
Balance at June 30, 2014 | $ | 1 | $ | 563 | $ | 323,338 | $ | 172,565 | $ | 4,778,506 | $ | (559,351 | ) | $ | (4,433,866 | ) | $ | 281,756 | ||||||||||||||
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 | ||||||||||||||
Retained earnings adjustment (see Note 15) | — | — | — | — | 16,773 | — | — | 16,773 | ||||||||||||||||||||||||
Adjusted balance at January 1, 2013 | 4 | 648 | 323,338 | 223,847 | 4,761,575 | (681,213 | ) | (4,500,795 | ) | 127,404 | ||||||||||||||||||||||
Net income | — | — | — | — | 58,273 | — | — | 58,273 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (42,310 | ) | — | (42,310 | ) | ||||||||||||||||||||||
Cash dividends | ||||||||||||||||||||||||||||||||
Common | — | — | — | — | (113,083 | ) | — | — | (113,083 | ) | ||||||||||||||||||||||
Preference | — | — | — | — | (23 | ) | — | — | (23 | ) | ||||||||||||||||||||||
Issuances of common stock | — | — | — | (31,532 | ) | — | — | 33,144 | 1,612 | |||||||||||||||||||||||
Conversions to common stock | — | (35 | ) | — | (618 | ) | — | — | 653 | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 7,241 | — | — | — | 7,241 | ||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 4 | $ | 613 | $ | 323,338 | $ | 198,938 | $ | 4,706,742 | $ | (723,523 | ) | $ | (4,466,998 | ) | $ | 39,114 | ||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI (a) | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Losses on cash flow hedges | ||||||||||||||||||||
Revenue | $ | (346 | ) | $ | (371 | ) | $ | (580 | ) | $ | (753 | ) | ||||||||
Cost of sales | 153 | 286 | 352 | 412 | ||||||||||||||||
Interest expense | (507 | ) | (507 | ) | (1,014 | ) | (1,014 | ) | ||||||||||||
Total before tax | (700 | ) | (592 | ) | (1,242 | ) | (1,355 | ) | ||||||||||||
Tax benefit | 269 | 231 | 479 | 528 | ||||||||||||||||
Net of tax | $ | (431 | ) | $ | (361 | ) | $ | (763 | ) | $ | (827 | ) | ||||||||
Unrealized (losses) gains on available for sale securities | ||||||||||||||||||||
Interest income | $ | (505 | ) | $ | 10 | $ | (852 | ) | $ | (2,602 | ) | |||||||||
Tax benefit | 186 | (3 | ) | 314 | 963 | |||||||||||||||
Net of tax | $ | (319 | ) | $ | 7 | $ | (538 | ) | $ | (1,639 | ) | |||||||||
Pension and Postretirement Benefit Plans (b) | ||||||||||||||||||||
Transition credit | $ | 3 | $ | 2 | $ | 5 | $ | 4 | ||||||||||||
Prior service costs | (27 | ) | (163 | ) | (54 | ) | (361 | ) | ||||||||||||
Actuarial losses | (9,869 | ) | (14,156 | ) | (19,627 | ) | (31,902 | ) | ||||||||||||
Total before tax | (9,893 | ) | (14,317 | ) | (19,676 | ) | (32,259 | ) | ||||||||||||
Tax benefit | 3,613 | 4,926 | 7,254 | 11,266 | ||||||||||||||||
Net of tax | $ | (6,280 | ) | $ | (9,391 | ) | $ | (12,422 | ) | $ | (20,993 | ) | ||||||||
(a) 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 14 for additional details). | |||||||||||||||||||
Schedule of Accumulated Comprehensive Income | ' | |||||||||||||||||||
Changes in accumulated other comprehensive loss for the six months ended June 30, 2014 and 2013 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, 2014 | $ | (6,380 | ) | $ | (1,769 | ) | $ | (601,421 | ) | $ | 35,014 | $ | (574,556 | ) | ||||||
Other comprehensive income (loss) before reclassifications (a) | 27 | 3,657 | — | (2,202 | ) | 1,482 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 763 | 538 | 12,422 | — | 13,723 | |||||||||||||||
Net current period other comprehensive income (loss) | 790 | 4,195 | 12,422 | (2,202 | ) | 15,205 | ||||||||||||||
Balance at June 30, 2014 | $ | (5,590 | ) | $ | 2,426 | $ | (588,999 | ) | $ | 32,812 | $ | (559,351 | ) | |||||||
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) | 73 | (6,084 | ) | — | (62,317 | ) | (68,328 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (a), (b) | 827 | 1,639 | 20,993 | 2,559 | 26,018 | |||||||||||||||
Net current period other comprehensive income (loss) | 900 | (4,445 | ) | 20,993 | (59,758 | ) | (42,310 | ) | ||||||||||||
Balance at June 30, 2013 | $ | (6,877 | ) | $ | 68 | $ | (738,206 | ) | $ | 21,492 | $ | (723,523 | ) | |||||||
(a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | ||||||||||||||||||||
(b) See table above for additional details of these reclassifications. |
Pensions_and_Other_Benefit_Pro1
Pensions and Other Benefit Programs (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | |||||||||||||||
The components of net periodic benefit cost for defined benefit pension plans were as follows: | ||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2,023 | $ | 3,494 | $ | 913 | $ | 2,139 | ||||||||
Interest cost | 19,416 | 18,534 | 7,276 | 11,627 | ||||||||||||
Expected return on plan assets | (25,956 | ) | (27,041 | ) | (9,980 | ) | (13,886 | ) | ||||||||
Amortization of transition credit | — | — | (3 | ) | (2 | ) | ||||||||||
Amortization of prior service cost (credit) | 2 | 94 | (15 | ) | 28 | |||||||||||
Amortization of net actuarial loss | 6,264 | 7,507 | 2,103 | 4,290 | ||||||||||||
Settlement | — | 1,416 | — | — | ||||||||||||
Special termination benefits | — | 548 | — | — | ||||||||||||
Net periodic benefit cost | $ | 1,749 | $ | 4,552 | $ | 294 | $ | 4,196 | ||||||||
Six Months Ended June 30, | ||||||||||||||||
United States | Foreign | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 4,438 | $ | 7,293 | $ | 1,821 | $ | 4,312 | ||||||||
Interest cost | 38,832 | 36,905 | 14,445 | 23,376 | ||||||||||||
Expected return on plan assets | (51,912 | ) | (54,127 | ) | (19,805 | ) | (27,921 | ) | ||||||||
Amortization of transition credit | — | — | (5 | ) | (4 | ) | ||||||||||
Amortization of prior service cost (credit) | 4 | 223 | (30 | ) | 56 | |||||||||||
Amortization of net actuarial loss | 12,424 | 18,544 | 4,179 | 8,638 | ||||||||||||
Settlement | — | 1,416 | — | — | ||||||||||||
Special termination benefits | — | 548 | — | — | ||||||||||||
Curtailment | — | 814 | — | — | ||||||||||||
Net periodic benefit cost | $ | 3,786 | $ | 11,616 | $ | 605 | $ | 8,457 | ||||||||
Schedule of Non Pension Postretirement Benefit Plans Disclosures | ' | |||||||||||||||
The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 697 | $ | 1,014 | $ | 1,425 | $ | 2,031 | ||||||||
Interest cost | 2,480 | 2,510 | 4,942 | 5,024 | ||||||||||||
Amortization of prior service cost | 40 | 41 | 80 | 82 | ||||||||||||
Amortization of net actuarial loss | 1,502 | 2,359 | 3,024 | 4,720 | ||||||||||||
Net periodic benefit cost | $ | 4,719 | $ | 5,924 | $ | 9,471 | $ | 11,857 | ||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||||||
The calculations of basic and diluted earnings per share are presented below: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to common stockholders: | ||||||||||||||||
Net income from continuing operations | $ | 87,548 | $ | 80,021 | $ | 129,420 | $ | 139,497 | ||||||||
Income (loss) from discontinued operations | 6,717 | (89,254 | ) | 9,518 | (81,224 | ) | ||||||||||
Net income (loss) - Pitney Bowes Inc. (numerator for diluted EPS) | 94,265 | (9,233 | ) | 138,938 | 58,273 | |||||||||||
Less: Preference stock dividend | (11 | ) | (13 | ) | (22 | ) | (23 | ) | ||||||||
Income (loss) attributable to common stockholders (numerator for basic EPS) | $ | 94,254 | $ | (9,246 | ) | $ | 138,916 | $ | 58,250 | |||||||
Denominator (in thousands): | ||||||||||||||||
Weighted-average shares used in basic EPS | 202,662 | 201,567 | 202,480 | 201,342 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Preferred stock | 1 | 2 | 1 | 2 | ||||||||||||
Preference stock | 344 | 387 | 348 | 390 | ||||||||||||
Stock plans | 1,463 | 847 | 1,272 | 646 | ||||||||||||
Weighted-average shares used in diluted EPS | 204,470 | 202,803 | 204,101 | 202,380 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.4 | $ | 0.64 | $ | 0.69 | ||||||||
Discontinued operations | 0.03 | (0.44 | ) | 0.05 | (0.40 | ) | ||||||||||
Net income (loss) | $ | 0.47 | $ | (0.05 | ) | $ | 0.69 | $ | 0.29 | |||||||
Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.39 | $ | 0.63 | $ | 0.69 | ||||||||
Discontinued operations | 0.03 | (0.44 | ) | 0.05 | (0.40 | ) | ||||||||||
Net income (loss) | $ | 0.46 | $ | (0.05 | ) | $ | 0.68 | $ | 0.29 | |||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands): | 6,062 | 12,673 | 7,943 | 12,881 | ||||||||||||
Description_of_Business_and_Ba2
Description of Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Support services revenue | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Prior period reclassification adjustment | $5 | $10 |
Cost of software | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Prior period reclassification adjustment | $4 | $8 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | $958,450 | $950,662 | $1,895,947 | $1,860,025 | ||||
EBIT | 234,129 | 229,989 | 460,450 | 426,878 | ||||
Reconciling items: | ' | ' | ' | ' | ||||
Interest, net | -41,895 | [1] | -48,996 | [1] | -85,612 | [1] | -97,006 | [1] |
Unallocated corporate expenses | -45,458 | -53,129 | -102,062 | -95,022 | ||||
Restructuring charges | -8,299 | -19,031 | -18,140 | -19,031 | ||||
Other expense | 0 | 0 | -61,657 | -25,121 | ||||
Income from continuing operations before income taxes | 138,477 | 108,833 | 192,979 | 190,698 | ||||
Small & Medium Business Solutions | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 524,454 | 542,554 | 1,058,749 | 1,084,366 | ||||
EBIT | 183,230 | 177,593 | 368,387 | 343,441 | ||||
North America Mailing | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 371,194 | 392,197 | 752,221 | 781,033 | ||||
EBIT | 156,781 | 157,518 | 317,119 | 305,976 | ||||
International Mailing | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 153,260 | 150,357 | 306,528 | 303,333 | ||||
EBIT | 26,449 | 20,075 | 51,268 | 37,465 | ||||
Enterprise Business Solutions | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 223,037 | 241,383 | 444,744 | 461,736 | ||||
EBIT | 32,970 | 37,033 | 64,603 | 68,353 | ||||
Production Mail | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 111,756 | 134,422 | 216,972 | 243,875 | ||||
EBIT | 10,558 | 15,787 | 18,295 | 23,619 | ||||
Presort Services | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 111,281 | 106,961 | 227,772 | 217,861 | ||||
EBIT | 22,412 | 21,246 | 46,308 | 44,734 | ||||
Digital Commerce Solutions | ' | ' | ' | ' | ||||
Segment reporting information profit (loss) | ' | ' | ' | ' | ||||
Revenues | 210,959 | 166,725 | 392,454 | 313,923 | ||||
EBIT | $17,929 | $15,363 | $27,460 | $15,084 | ||||
[1] | Includes financing interest expense and other interest expense, net. |
Finance_Assets_Details
Finance Assets (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Loan receivables | ' | ' | ' |
Net investment in finance receivables | $1,923,562,000 | ' | $2,065,284,000 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 36,949,000 | 40,094,000 | ' |
Amounts charged to expense | 7,786,000 | 8,955,000 | ' |
Accounts written off | -11,064,000 | -12,948,000 | ' |
Balance Closing | 33,671,000 | 36,101,000 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days | 2,080,678,000 | ' | 2,231,251,000 |
Greater than 30 days and less than 61 days | 50,164,000 | ' | 58,717,000 |
Greater than 60 days and less than 91 days | 30,086,000 | ' | 31,247,000 |
Greater than 90 days and Less than 121 days | 13,229,000 | ' | 12,512,000 |
Greater than 120 days | 30,712,000 | ' | 26,321,000 |
Total | 2,204,869,000 | ' | 2,360,048,000 |
Still accruing interest | 11,118,000 | ' | 10,392,000 |
Not accruing interest | 32,823,000 | ' | 28,441,000 |
Total | 43,941,000 | ' | 38,833,000 |
Revenue recognition resume period | '60 days | ' | ' |
Low | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Approximate percentage of portfolio | 30.00% | ' | ' |
Medium | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Approximate percentage of portfolio | 40.00% | ' | ' |
High | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Approximate percentage of portfolio | 30.00% | ' | ' |
North America | ' | ' | ' |
Loan receivables | ' | ' | ' |
Net investment in finance receivables | 1,511,453,000 | ' | 1,650,848,000 |
International | ' | ' | ' |
Loan receivables | ' | ' | ' |
Net investment in finance receivables | 412,109,000 | ' | 414,436,000 |
Sales-type lease receivables | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 1,765,287,000 | ' | 1,913,179,000 |
Unguaranteed residual values | 131,707,000 | ' | 142,892,000 |
Unearned income | -379,343,000 | ' | -400,707,000 |
Allowance for credit losses | -20,747,000 | ' | -23,868,000 |
Net investment in sales-type lease receivables | 1,496,904,000 | ' | 1,631,496,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Sales-type Lease Receivables - Total | 1,765,287,000 | ' | 1,913,179,000 |
Revenue recognition discontinuation period | '120 days | ' | ' |
Sales-type lease receivables | North America | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 1,320,426,000 | ' | 1,456,420,000 |
Unguaranteed residual values | 110,195,000 | ' | 121,339,000 |
Unearned income | -278,782,000 | ' | -299,396,000 |
Allowance for credit losses | -13,143,000 | ' | -14,165,000 |
Net investment in sales-type lease receivables | 1,138,696,000 | ' | 1,264,198,000 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 14,165,000 | 16,979,000 | ' |
Amounts charged to expense | 2,360,000 | 3,022,000 | ' |
Accounts written off | -3,382,000 | -4,397,000 | ' |
Balance Closing | 13,143,000 | 15,604,000 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days | 1,248,259,000 | ' | 1,383,253,000 |
Greater than 30 days and less than 61 days | 29,229,000 | ' | 32,102,000 |
Greater than 60 days and less than 91 days | 20,140,000 | ' | 20,830,000 |
Greater than 90 days and Less than 121 days | 6,540,000 | ' | 6,413,000 |
Greater than 120 days | 16,258,000 | ' | 13,822,000 |
Sales-type Lease Receivables - Total | 1,320,426,000 | ' | 1,456,420,000 |
Still accruing interest | 6,540,000 | ' | 6,413,000 |
Not accruing interest | 16,258,000 | ' | 13,822,000 |
Total | 22,798,000 | ' | 20,235,000 |
Sales-type lease receivables | North America | Low | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 988,555,000 | ' | 1,081,853,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Sales-type Lease Receivables - Total | 988,555,000 | ' | 1,081,853,000 |
Sales-type lease receivables | North America | Medium | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 225,106,000 | ' | 244,379,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Sales-type Lease Receivables - Total | 225,106,000 | ' | 244,379,000 |
Sales-type lease receivables | North America | High | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 47,293,000 | ' | 51,851,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Sales-type Lease Receivables - Total | 47,293,000 | ' | 51,851,000 |
Sales-type lease receivables | North America | Not Scored | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 59,472,000 | ' | 78,337,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Sales-type Lease Receivables - Total | 59,472,000 | ' | 78,337,000 |
Sales-type lease receivables | International | ' | ' | ' |
Sales-type lease receivables | ' | ' | ' |
Gross finance receivables | 444,861,000 | ' | 456,759,000 |
Unguaranteed residual values | 21,512,000 | ' | 21,553,000 |
Unearned income | -100,561,000 | ' | -101,311,000 |
Allowance for credit losses | -7,604,000 | ' | -9,703,000 |
Net investment in sales-type lease receivables | 358,208,000 | ' | 367,298,000 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 9,703,000 | 8,662,000 | ' |
Amounts charged to expense | -350,000 | 784,000 | ' |
Accounts written off | -1,749,000 | -2,268,000 | ' |
Balance Closing | 7,604,000 | 7,178,000 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days | 412,514,000 | ' | 425,923,000 |
Greater than 30 days and less than 61 days | 9,627,000 | ' | 11,760,000 |
Greater than 60 days and less than 91 days | 6,542,000 | ' | 5,724,000 |
Greater than 90 days and Less than 121 days | 4,578,000 | ' | 3,979,000 |
Greater than 120 days | 11,600,000 | ' | 9,373,000 |
Sales-type Lease Receivables - Total | 444,861,000 | ' | 456,759,000 |
Still accruing interest | 4,578,000 | ' | 3,979,000 |
Not accruing interest | 11,600,000 | ' | 9,373,000 |
Total | 16,178,000 | ' | 13,352,000 |
Loan receivables | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 439,582,000 | ' | 446,869,000 |
Allowance for credit losses | -12,924,000 | ' | -13,081,000 |
Net investment in loan receivables | 426,658,000 | ' | 433,788,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loan Receivables - Total | 439,582,000 | ' | 446,869,000 |
Revenue recognition discontinuation period | '90 days | ' | ' |
Loan receivables | North America | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 383,532,000 | ' | 397,815,000 |
Allowance for credit losses | -10,775,000 | ' | -11,165,000 |
Net investment in loan receivables | 372,757,000 | ' | 386,650,000 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 11,165,000 | 12,322,000 | ' |
Amounts charged to expense | 4,742,000 | 4,625,000 | ' |
Accounts written off | -5,132,000 | -5,388,000 | ' |
Balance Closing | 10,775,000 | 11,559,000 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days | 365,972,000 | ' | 379,502,000 |
Greater than 30 days and less than 61 days | 10,132,000 | ' | 10,464,000 |
Greater than 60 days and less than 91 days | 2,919,000 | ' | 3,330,000 |
Greater than 90 days and Less than 121 days | 1,887,000 | ' | 1,809,000 |
Greater than 120 days | 2,622,000 | ' | 2,710,000 |
Loan Receivables - Total | 383,532,000 | ' | 397,815,000 |
Still accruing interest | 0 | ' | 0 |
Not accruing interest | 4,509,000 | ' | 4,519,000 |
Total | 4,509,000 | ' | 4,519,000 |
Loan receivables | North America | Low | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 263,924,000 | ' | 279,607,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loan Receivables - Total | 263,924,000 | ' | 279,607,000 |
Loan receivables | North America | Medium | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 93,594,000 | ' | 95,524,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loan Receivables - Total | 93,594,000 | ' | 95,524,000 |
Loan receivables | North America | High | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 10,968,000 | ' | 11,511,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loan Receivables - Total | 10,968,000 | ' | 11,511,000 |
Loan receivables | North America | Not Scored | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 15,046,000 | ' | 11,173,000 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Loan Receivables - Total | 15,046,000 | ' | 11,173,000 |
Loan receivables | International | ' | ' | ' |
Loan receivables | ' | ' | ' |
Loan receivables | 56,050,000 | ' | 49,054,000 |
Allowance for credit losses | -2,149,000 | ' | -1,916,000 |
Net investment in loan receivables | 53,901,000 | ' | 47,138,000 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Balance Beginning | 1,916,000 | 2,131,000 | ' |
Amounts charged to expense | 1,034,000 | 524,000 | ' |
Accounts written off | -801,000 | -895,000 | ' |
Balance Closing | 2,149,000 | 1,760,000 | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
Less than 31 days | 53,933,000 | ' | 42,573,000 |
Greater than 30 days and less than 61 days | 1,176,000 | ' | 4,391,000 |
Greater than 60 days and less than 91 days | 485,000 | ' | 1,363,000 |
Greater than 90 days and Less than 121 days | 224,000 | ' | 311,000 |
Greater than 120 days | 232,000 | ' | 416,000 |
Loan Receivables - Total | 56,050,000 | ' | 49,054,000 |
Still accruing interest | 0 | ' | 0 |
Not accruing interest | 456,000 | ' | 727,000 |
Total | 456,000 | ' | 727,000 |
DIS | ' | ' | ' |
Loan receivables | ' | ' | ' |
Finance receivables | $62,000,000 | ' | ' |
Finance_Assets_Details_2
Finance Assets (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Leveraged Leases [Line Items] | ' | ' |
Rental receivables | $53,051 | $61,721 |
Unguaranteed residual values | 13,181 | 13,235 |
Principal and interest on non-recourse loans | -29,023 | -35,449 |
Unearned income | -3,778 | -5,097 |
Investment in leveraged leases | 33,431 | 34,410 |
Less: deferred taxes related to leveraged leases | -13,245 | -15,078 |
Net investment in leveraged leases | $20,186 | $19,332 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and work in process | $35,723 | $33,920 |
Supplies and service parts | 45,045 | 48,165 |
Finished products | 35,218 | 38,515 |
Inventory at FIFO cost | 115,986 | 120,600 |
Excess of FIFO cost over LIFO cost | -14,734 | -17,020 |
Total inventory, net | $101,252 | $103,580 |
Discontinued_Operations_and_As2
Discontinued Operations and Assets Held for Sale (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | $3,567,000 | $255,272,000 | $19,858,000 | $532,935,000 |
Income from operations before taxes | 1,598,000 | -114,193,000 | 4,416,000 | -95,949,000 |
Gain (Loss) on sale | 26,029,000 | -2,263,000 | 27,322,000 | -3,913,000 |
(Loss) income before taxes | 27,627,000 | -116,456,000 | 31,738,000 | -99,862,000 |
Tax provision | 20,910,000 | -27,202,000 | 22,220,000 | -18,638,000 |
Income from discontinued operations | 6,717,000 | -89,254,000 | 9,518,000 | -81,224,000 |
Discontinued operations | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Goodwill impairment | ' | ' | ' | 100,000,000 |
Asset impairment charges | ' | ' | ' | 15,000,000 |
PBMS | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | 0 | 219,471,000 | 0 | 444,727,000 |
Income from operations before taxes | 580,000 | -117,636,000 | 334,000 | -101,582,000 |
Gain (Loss) on sale | 0 | 0 | 130,000 | 0 |
(Loss) income before taxes | 580,000 | -117,636,000 | 464,000 | -101,582,000 |
Tax provision | 217,000 | -28,153,000 | 196,000 | -19,407,000 |
Income from discontinued operations | 363,000 | -89,483,000 | 268,000 | -82,175,000 |
IMS | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | 0 | 2,964,000 | 0 | 23,032,000 |
Income from operations before taxes | 0 | -378,000 | 308,000 | -1,978,000 |
Gain (Loss) on sale | 831,000 | -2,263,000 | 1,994,000 | -3,913,000 |
(Loss) income before taxes | 831,000 | -2,641,000 | 2,302,000 | -5,891,000 |
Tax provision | 321,000 | -55,000 | 850,000 | -1,244,000 |
Income from discontinued operations | 510,000 | -2,586,000 | 1,452,000 | -4,647,000 |
Nordic furniture business | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | 0 | 13,082,000 | 0 | 25,771,000 |
Income from operations before taxes | 0 | -597,000 | 345,000 | -478,000 |
Gain (Loss) on sale | 0 | 0 | 0 | 0 |
(Loss) income before taxes | 0 | -597,000 | 345,000 | -478,000 |
Tax provision | 0 | -167,000 | 97,000 | -134,000 |
Income from discontinued operations | 0 | -430,000 | 248,000 | -344,000 |
Capital Services | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | ' | ' | ' | 39,405,000 |
Income from operations before taxes | ' | ' | ' | 8,089,000 |
Gain (Loss) on sale | ' | ' | ' | 0 |
(Loss) income before taxes | ' | ' | ' | 8,089,000 |
Tax provision | ' | ' | ' | 2,147,000 |
Income from discontinued operations | ' | ' | ' | 5,942,000 |
DIS | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' |
Revenue | 3,567,000 | 19,755,000 | 19,858,000 | ' |
Income from operations before taxes | 1,018,000 | 4,418,000 | 3,429,000 | ' |
Gain (Loss) on sale | 25,198,000 | 0 | 25,198,000 | ' |
(Loss) income before taxes | 26,216,000 | 4,418,000 | 28,627,000 | ' |
Tax provision | 20,372,000 | 1,173,000 | 21,077,000 | ' |
Income from discontinued operations | $5,844,000 | $3,245,000 | $7,550,000 | ' |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details 2) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite lived intangible assets future amortization expense | ' |
Remaining for year ending December 31, 2014 | $16,961 |
Year ending December 31, 2015 | 30,237 |
Year ending December 31, 2016 | 22,941 |
Year ending December 31, 2017 | 11,450 |
Year ending December 31, 2018 | 8,555 |
Thereafter | 12,616 |
Net Carrying Amount | $102,760 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Details 2) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite lived intangible assets future amortization expense | ' |
Remaining for year ending December 31, 2014 | $16,961 |
Year ending December 31, 2015 | 30,237 |
Year ending December 31, 2016 | 22,941 |
Year ending December 31, 2017 | 11,450 |
Year ending December 31, 2018 | 8,555 |
Thereafter | 12,616 |
Net Carrying Amount | $102,760 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill (Details 3) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | $1,734,871 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | -6,486 | [2] | ' | |
Goodwill, before reclassifications | 1,728,385 | ' | ||
Goodwill | 1,728,385 | 1,734,871 | ||
Discontinued operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 9,353 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | -9,353 | [2] | ' | |
Goodwill, before reclassifications | 0 | ' | ||
Goodwill | ' | 9,353 | ||
North America Mailing | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 326,665 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | -966 | [2] | ' | |
Goodwill, before reclassifications | 325,699 | ' | ||
Goodwill | ' | 326,665 | ||
International Mailing | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 182,261 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | -301 | [2] | ' | |
Goodwill, before reclassifications | 181,960 | ' | ||
Goodwill | ' | 182,261 | ||
Small & Medium Business Solutions | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 508,926 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | -1,267 | [2] | ' | |
Goodwill, before reclassifications | 507,659 | ' | ||
Goodwill | ' | 508,926 | ||
Production Mail | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 118,060 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | 382 | [2] | ' | |
Goodwill, before reclassifications | 118,442 | ' | ||
Goodwill | ' | 118,060 | ||
Presort Services | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 195,140 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | 0 | [2] | ' | |
Goodwill, before reclassifications | 195,140 | ' | ||
Goodwill | ' | 195,140 | ||
Enterprise Business Solutions | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 313,200 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | 382 | [2] | ' | |
Goodwill, before reclassifications | 313,582 | ' | ||
Goodwill | ' | 313,200 | ||
Digital Commerce Solutions | Continuing Operations | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Gross value before accumulated impairment | ' | 903,392 | [1] | |
Accumulated impairment | ' | 0 | ||
Other | 3,752 | [2] | ' | |
Goodwill, before reclassifications | 907,144 | ' | ||
Goodwill | ' | $903,392 | ||
[1] | Includes the reallocation of certain goodwill from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment and discontinued operations. | |||
[2] | Primarily represents the impact of foreign currency translation and the sale of DIS. |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivative Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | $409,324 | $526,489 |
Liabilities: | 0 | 0 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 483,428 | 497,544 |
Liabilities: | -3,509 | -7,454 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 892,752 | 1,024,033 |
Liabilities: | -3,509 | -7,454 |
Carrying value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt | 3,239,722 | 3,346,295 |
Fair value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt | 3,475,702 | 3,539,022 |
Money market funds / commercial paper | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 299,474 | 403,706 |
Money market funds / commercial paper | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 201,606 | 224,440 |
Money market funds / commercial paper | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Money market funds / commercial paper | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 501,080 | 628,146 |
Equity securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Equity securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 27,587 | 26,536 |
Equity securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Equity securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 27,587 | 26,536 |
Commingled fixed income securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Commingled fixed income securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 25,268 | 24,695 |
Commingled fixed income securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Commingled fixed income securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 25,268 | 24,695 |
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: | 109,850 | 122,783 |
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: | 19,141 | 17,653 |
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 | 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: | 128,991 | 140,436 |
Debt securities - corporate | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Debt securities - corporate | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 60,555 | 38,264 |
Debt securities - corporate | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Debt securities - corporate | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 60,555 | 38,264 |
Mortgage-backed / asset-backed securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Liabilities: | ' | 0 |
Mortgage-backed / asset-backed securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 148,339 | 164,598 |
Liabilities: | ' | -4,445 |
Mortgage-backed / asset-backed securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Liabilities: | ' | 0 |
Mortgage-backed / asset-backed securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 148,339 | 164,598 |
Liabilities: | ' | -4,445 |
Foreign exchange contracts | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
Foreign exchange contracts | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 932 | 1,358 |
Liabilities: | -3,509 | -3,009 |
Foreign exchange contracts | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
Foreign exchange contracts | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets: | 932 | 1,358 |
Liabilities: | ($3,509) | ($3,009) |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivative Instruments (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ||||
Other current assets and prepayments: Foreign exchange contracts | $603,000 | ' | $603,000 | ' | $546,000 | ||||
Accounts payable and accrued liabilities: Foreign exchange contracts | -303,000 | ' | -303,000 | ' | -526,000 | ||||
Other current assets and prepayments: Foreign exchange contracts | 329,000 | ' | 329,000 | ' | 812,000 | ||||
Accounts payable and accrued liabilities: Foreign exchange contracts | -3,206,000 | ' | -3,206,000 | ' | -2,483,000 | ||||
Total derivative assets | 932,000 | ' | 932,000 | ' | 1,358,000 | ||||
Total derivative liabilities | -3,509,000 | ' | -3,509,000 | ' | -3,009,000 | ||||
Total net derivative liabilities | -2,577,000 | ' | -2,577,000 | ' | -1,651,000 | ||||
Derivative Gain Recognized in Earnings | 774,000 | 2,768,000 | ' | ' | ' | ||||
Hedged Item Expense Recognized in Earnings | -2,742,000 | -8,227,000 | ' | ' | ' | ||||
Total notional amount of outstanding contracts in cash flow hedging relationships | 26,000,000 | ' | 26,000,000 | ' | 26,000,000 | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Foreign exchange contracts | 17,000 | 170,000 | -52,000 | 800,000 | ' | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Revenue | -958,450,000 | -950,662,000 | -1,895,947,000 | -1,860,025,000 | ' | ||||
Derivative Gain (Loss) Recognized in Earnings - Foreign exchange contracts - Selling, general and administrative expenses | -2,622,000 | -1,644,000 | -3,304,000 | -5,995,000 | ' | ||||
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 | 3,000,000 | ' | 3,000,000 | ' | ' | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | ' | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Revenue | 346,000 | [1] | 371,000 | [1] | 580,000 | [1] | 753,000 | [1] | ' |
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Cost of sales | 153,000 | [1] | 286,000 | [1] | 352,000 | [1] | 412,000 | [1] | ' |
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | ($193,000) | ($85,000) | ($228,000) | ($341,000) | ' | ||||
[1] | Amounts in parentheses indicate debits (reductions) to income. |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivative Instruments (Details 3) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $309,058 | $325,368 |
Gross unrealized gains | 6,120 | 3,504 |
Gross unrealized losses | -2,322 | -6,580 |
Estimated fair value | 312,856 | 322,292 |
Amortized cost - Within 1 year | 23,296 | ' |
Estimated fair value - Within 1 year | 23,356 | ' |
Amortized cost - After 1 year through 5 years | 47,382 | ' |
Estimated fair value - After 1 year through 5 years | 48,261 | ' |
Amortized cost - After 5 years through 10 years | 85,913 | ' |
Estimated fair value - After 5 years through 10 years | 87,204 | ' |
Amortized cost - After 10 years | 152,467 | ' |
Estimated fair value - After 10 years | 154,035 | ' |
Amortized cost - Total | 309,058 | ' |
Estimated fair value - Total | 312,856 | ' |
Debt securities - U.S. and foreign governments, agencies and municipalities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 102,854 | 121,803 |
Gross unrealized gains | 1,986 | 999 |
Gross unrealized losses | -878 | -3,372 |
Estimated fair value | 103,962 | 119,430 |
Debt securities - corporate | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 58,914 | 37,901 |
Gross unrealized gains | 1,771 | 935 |
Gross unrealized losses | -130 | -572 |
Estimated fair value | 60,555 | 38,264 |
Mortgage-backed / asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 147,290 | 165,664 |
Gross unrealized gains | 2,363 | 1,570 |
Gross unrealized losses | -1,314 | -2,636 |
Estimated fair value | $148,339 | $164,598 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | $66,572 | ' |
Expenses, net | 18,140 | ' |
Cash payments | -33,530 | -27,255 |
Balance Ending | 51,182 | ' |
Severance and benefits costs | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | 58,558 | ' |
Expenses, net | 11,760 | ' |
Cash payments | -26,071 | ' |
Balance Ending | 44,247 | ' |
Pension and Retiree Medical | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | 0 | ' |
Expenses, net | 3,372 | ' |
Cash payments | -3,372 | ' |
Balance Ending | 0 | ' |
Other exit costs | ' | ' |
Restructuring Costs [Abstract] | ' | ' |
Balance Beginning | 8,014 | ' |
Expenses, net | 3,008 | ' |
Cash payments | -4,087 | ' |
Balance Ending | $6,935 | ' |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Term loans | Term loans | Debt due 2015 | Debt due 2015 | Debt due 2016 | Debt due 2016 | Debt due 2017 | Debt due 2017 | Debt due 2019 | Debt due 2019 | Debt due 2022 | Debt due 2022 | Debt due 2024 | Debt due 2024 | Debt due 2024 | Debt due 2037 | Debt due 2037 | Debt due 2043 | Debt due 2043 | LIBOR | LIBOR | Prime Rate | Prime Rate | |||||
Debt due 2018 | Debt due 2018 | Debt due 2018 | Debt due 2018 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | 5.00% | ' | 4.75% | ' | 5.75% | ' | 6.25% | ' | 5.25% | ' | ' | 4.63% | ' | 5.25% | ' | 6.70% | ' | 5.60% | ' | 4.75% | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | $130,000,000 | $230,000,000 | $274,879,000 | $274,879,000 | $370,914,000 | $370,914,000 | $385,109,000 | $500,000,000 | $300,000,000 | $300,000,000 | $110,000,000 | $110,000,000 | ' | $500,000,000 | $0 | $115,041,000 | $500,000,000 | $425,000,000 | $425,000,000 | $250,000,000 | $250,000,000 | $350,000,000 | $350,000,000 |
Other | ' | 28,779,000 | ' | 35,502,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | ' | 3,239,722,000 | ' | 3,346,295,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion | ' | 274,879,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | 2,964,843,000 | ' | 3,346,295,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of debt | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) on extinguishment of debt | 62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of notes | ' | 492,525,000 | 411,613,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 493,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | $599,850,000 | $779,637,000 | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling_Interests_Prefe1
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Preferred Stock, Value, Issued | $1 | $1 | $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 | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Preferred stock | Preferred stock | Preference stock | Preference stock | Common stock | Common stock | Additional paid-in capital | Additional paid-in capital | Retained earnings | Retained earnings | Accumulated other comprehensive loss | Accumulated other comprehensive loss | Treasury stock | Treasury stock | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | |||||
Preferred stock | Preference stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Preferred stock | Preference stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances, beginning of period | ' | ' | $205,176 | $127,404 | $4 | $4 | $591 | $648 | $323,338 | $323,338 | $196,977 | $223,847 | $4,715,564 | $4,761,575 | ($574,556) | ($681,213) | ($4,456,742) | ($4,500,795) | $110,631 | $4 | $648 | $323,338 | $223,847 | $4,744,802 | ($681,213) | ($4,500,795) | ' | ' | ' | ' | ' | ' | ' | ' |
Retained earnings adjustment (see Note 15) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,773 | 0 | 0 | 0 | 0 | 16,773 | 0 | 0 |
Net income | 94,265 | -9,233 | 138,938 | 58,273 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 138,938 | 58,273 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income | 13,982 | -12,520 | 15,205 | -42,310 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common | ' | ' | -75,974 | -113,083 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -75,974 | -113,083 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference | -11 | -13 | -22 | -23 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22 | -23 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuances of common stock | ' | ' | -2,023 | 1,612 | 0 | 0 | 0 | 0 | 0 | 0 | -24,212 | -31,532 | 0 | 0 | 0 | 0 | 22,189 | 33,144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversions to common stock | ' | ' | 0 | 0 | -3 | 0 | -28 | -35 | 0 | 0 | -656 | -618 | 0 | 0 | 0 | 0 | 687 | 653 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 7,976 | 7,241 | 0 | 0 | 0 | 0 | 0 | 0 | 7,976 | 7,241 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of subsidiary shares from noncontrolling interest | ' | ' | -7,520 | ' | 0 | ' | 0 | ' | 0 | ' | -7,520 | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances, end of period | $281,756 | $39,114 | $281,756 | $39,114 | $1 | $4 | $563 | $613 | $323,338 | $323,338 | $172,565 | $198,938 | $4,778,506 | $4,706,742 | ($559,351) | ($723,523) | ($4,433,866) | ($4,466,998) | $110,631 | $4 | $648 | $323,338 | $223,847 | $4,744,802 | ($681,213) | ($4,500,795) | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Revenues | $958,450 | $950,662 | $1,895,947 | $1,860,025 | ||||
Interest expense | -21,482 | -30,045 | -45,546 | -59,036 | ||||
Tax benefit | -46,335 | -24,218 | -54,371 | -42,013 | ||||
Net income (loss) | 98,859 | -4,639 | 148,126 | 67,461 | ||||
Interest income | -505 | [1] | 10 | [1] | ' | ' | ||
Tax benefit | 186 | [1] | -3 | [1] | ' | ' | ||
Net of tax | 319 | [1] | -7 | [1] | ' | ' | ||
Transition credit | 3 | [1],[2] | 2 | [1],[2] | ' | ' | ||
Prior service costs | -27 | [1],[2] | -163 | [1],[2] | ' | ' | ||
Actuarial losses | -9,869 | [1],[2] | -14,156 | [1],[2] | ' | ' | ||
Total before tax | -9,893 | [1],[2] | -14,317 | [1],[2] | ' | ' | ||
Tax benefit | 3,613 | [1],[2] | 4,926 | [1],[2] | 7,254 | 11,266 | ||
Net of tax | -6,280 | [1],[2] | -9,391 | [1],[2] | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Revenues | -346 | [1] | -371 | [1] | -580 | [1] | -753 | [1] |
Cost of sales | 153 | [1] | 286 | [1] | 352 | [1] | 412 | [1] |
Interest expense | -507 | [1] | -507 | [1] | -1,014 | [1] | -1,014 | [1] |
Total before tax | -700 | [1] | -592 | [1] | -1,242 | [1] | -1,355 | [1] |
Tax benefit | 269 | [1] | 231 | [1] | 479 | [1] | 528 | [1] |
Net income (loss) | -431 | [1] | -361 | [1] | -763 | [1] | -827 | [1] |
Interest income | ' | ' | -852 | [1] | -2,602 | [1] | ||
Tax benefit | ' | ' | 314 | [1] | 963 | [1] | ||
Net of tax | ' | ' | 538 | [1] | 1,639 | [1] | ||
Transition credit | ' | ' | 5 | [1],[2] | 4 | [1],[2] | ||
Prior service costs | ' | ' | -54 | [1],[2] | -361 | [1],[2] | ||
Actuarial losses | ' | ' | -19,627 | [1],[2] | -31,902 | [1],[2] | ||
Total before tax | ' | ' | -19,676 | [1],[2] | -32,259 | [1],[2] | ||
Tax benefit | ' | ' | 7,254 | [1],[2] | 11,266 | [1],[2] | ||
Net of tax | ' | ' | ($12,422) | [1],[2] | ($20,993) | [1],[2] | ||
[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 14 for additional details). |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Balance Beginning | ' | ' | ($574,556) | ($681,213) | ||
Other comprehensive income (loss), before reclassifications | ' | ' | 1,482 | [1] | -68,328 | [1] |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 13,723 | [1],[2] | 26,018 | [1],[2] |
Net current period other comprehensive income (loss) | 13,982 | -12,520 | 15,205 | -42,310 | ||
Balance Ending | -559,351 | -723,523 | -559,351 | -723,523 | ||
Gains (losses) on cash flow hedges | ' | ' | ' | ' | ||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Balance Beginning | ' | ' | -6,380 | -7,777 | ||
Other comprehensive income (loss), before reclassifications | ' | ' | 27 | [1] | 73 | [1] |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 763 | [1],[2] | 827 | [1],[2] |
Net current period other comprehensive income (loss) | ' | ' | 790 | 900 | ||
Balance Ending | -5,590 | -6,877 | -5,590 | -6,877 | ||
Unrealized gains (losses) on available for sale securities | ' | ' | ' | ' | ||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Balance Beginning | ' | ' | -1,769 | 4,513 | ||
Other comprehensive income (loss), before reclassifications | ' | ' | 3,657 | [1] | -6,084 | [1] |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 538 | [1],[2] | 1,639 | [1],[2] |
Net current period other comprehensive income (loss) | ' | ' | 4,195 | -4,445 | ||
Balance Ending | 2,426 | 68 | 2,426 | 68 | ||
Defined benefit pension plans and nonpension postretirement benefit plans | ' | ' | ' | ' | ||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Balance Beginning | ' | ' | -601,421 | -759,199 | ||
Other comprehensive income (loss), before reclassifications | ' | ' | 0 | [1] | 0 | [1] |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 12,422 | [1],[2] | 20,993 | [1],[2] |
Net current period other comprehensive income (loss) | ' | ' | 12,422 | 20,993 | ||
Balance Ending | -588,999 | -738,206 | -588,999 | -738,206 | ||
Foreign currency items | ' | ' | ' | ' | ||
Schedule of Accumulated Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Balance Beginning | ' | ' | 35,014 | 81,250 | ||
Other comprehensive income (loss), before reclassifications | ' | ' | -2,202 | [1] | -62,317 | [1] |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | [1],[2] | 2,559 | [1],[2] |
Net current period other comprehensive income (loss) | ' | ' | -2,202 | -59,758 | ||
Balance Ending | $32,812 | $21,492 | $32,812 | $21,492 | ||
[1] | Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||
[2] | See table above for additional details of these reclassifications. |
Pensions_and_Other_Benefit_Pro2
Pensions and Other Benefit Programs (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||
Amortization of transition credit | ($3,000) | [1],[2] | ($2,000) | [1],[2] | ' | ' |
Amortization of prior service cost | 27,000 | [1],[2] | 163,000 | [1],[2] | ' | ' |
Amortization of net actuarial loss | 9,869,000 | [1],[2] | 14,156,000 | [1],[2] | ' | ' |
Defined Benefit Pension Plans | United States | ' | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||
Service cost | 2,023,000 | 3,494,000 | 4,438,000 | 7,293,000 | ||
Interest cost | 19,416,000 | 18,534,000 | 38,832,000 | 36,905,000 | ||
Expected return on plan assets | -25,956,000 | -27,041,000 | -51,912,000 | -54,127,000 | ||
Amortization of transition credit | 0 | 0 | 0 | 0 | ||
Amortization of prior service cost | 2,000 | 94,000 | 4,000 | 223,000 | ||
Amortization of net actuarial loss | 6,264,000 | 7,507,000 | 12,424,000 | 18,544,000 | ||
Settlement | 0 | -1,416,000 | 0 | -1,416,000 | ||
Special termination benefits | 0 | -548,000 | 0 | -548,000 | ||
Curtailment | ' | ' | 0 | 814,000 | ||
Net periodic benefit cost | 1,749,000 | 4,552,000 | 3,786,000 | 11,616,000 | ||
Defined Benefit Plan Contributions By Employer | ' | ' | 14,000,000 | 7,000,000 | ||
Defined Benefit Pension Plans | Foreign | ' | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||
Service cost | 913,000 | 2,139,000 | 1,821,000 | 4,312,000 | ||
Interest cost | 7,276,000 | 11,627,000 | 14,445,000 | 23,376,000 | ||
Expected return on plan assets | -9,980,000 | -13,886,000 | -19,805,000 | -27,921,000 | ||
Amortization of transition credit | -3,000 | -2,000 | -5,000 | -4,000 | ||
Amortization of prior service cost | -15,000 | 28,000 | -30,000 | 56,000 | ||
Amortization of net actuarial loss | 2,103,000 | 4,290,000 | 4,179,000 | 8,638,000 | ||
Settlement | 0 | 0 | 0 | 0 | ||
Special termination benefits | 0 | 0 | 0 | 0 | ||
Curtailment | ' | ' | 0 | 0 | ||
Net periodic benefit cost | 294,000 | 4,196,000 | 605,000 | 8,457,000 | ||
Nonpension Postretirement Benefit Plans | ' | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||
Service cost | 697,000 | 1,014,000 | 1,425,000 | 2,031,000 | ||
Interest cost | 2,480,000 | 2,510,000 | 4,942,000 | 5,024,000 | ||
Amortization of prior service cost | 40,000 | 41,000 | 80,000 | 82,000 | ||
Amortization of net actuarial loss | 1,502,000 | 2,359,000 | 3,024,000 | 4,720,000 | ||
Net periodic benefit cost | 4,719,000 | 5,924,000 | 9,471,000 | 11,857,000 | ||
Defined Benefit Plan Contributions By Employer | ' | ' | $12,000,000 | $16,000,000 | ||
[1] | These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 14 for additional details). | |||||
[2] | Amounts in parentheses indicate debits (reductions) to income. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Effective Income Tax Rate Reconciliation, Percent | 33.50% | 22.30% | 28.20% | 22.00% |
Income Tax Reconciliation, Tax Planning Initiatives | ' | ' | ' | $7,000,000 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | ' | ' | 6,000,000 | 4,000,000 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | ' | ' | ' | 4,000,000 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 100,000,000 | ' | 100,000,000 | ' |
Restatement Adjustment | ' | ' | ' | ' |
Retained earnings adjustment (see Note 15) | ' | ' | ' | ($16,773,000) |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Amounts attributable to common stockholders: | ' | ' | ' | ' |
Net income from continuing operations | $87,548 | $80,021 | $129,420 | $139,497 |
Income (loss) from discontinued operations | 6,717 | -89,254 | 9,518 | -81,224 |
Net income (loss) - Pitney Bowes Inc. (numerator for diluted EPS) | 94,265 | -9,233 | 138,938 | 58,273 |
Less: Preference stock dividend | -11 | -13 | -22 | -23 |
Income (loss) attributable to common stockholders (numerator for basic EPS) | $94,254 | ($9,246) | $138,916 | $58,250 |
Denominator (in thousands): | ' | ' | ' | ' |
Weighted-average shares used in basic EPS | 202,662 | 201,567 | 202,480 | 201,342 |
Effect of dilutive shares: | ' | ' | ' | ' |
Preferred stock | 1 | 2 | 1 | 2 |
Preference stock | 344 | 387 | 348 | 390 |
Stock plans | 1,463 | 847 | 1,272 | 646 |
Weighted-average shares used in diluted EPS | 204,470 | 202,803 | 204,101 | 202,380 |
Basic earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.43 | $0.40 | $0.64 | $0.69 |
Discontinued operations | $0.03 | ($0.44) | $0.05 | ($0.40) |
Net income (loss) attributable to Pitney Bowes Inc. | $0.47 | ($0.05) | $0.69 | $0.29 |
Diluted earnings per share attributable to common stockholders: | ' | ' | ' | ' |
Continuing operations | $0.43 | $0.39 | $0.63 | $0.69 |
Discontinued operations | $0.03 | ($0.44) | $0.05 | ($0.40) |
Net income (loss) attributable to Pitney Bowes Inc. | $0.46 | ($0.05) | $0.68 | $0.29 |
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands): | 6,062 | 12,673 | 7,943 | 12,881 |