Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | PITNEY BOWES INC /DE/ | ||
Entity Central Index Key | 78,814 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2,017 | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 186,779,761 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.8 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue: | ||||
Equipment sales | $ 679,803 | $ 675,451 | $ 695,159 | |
Supplies | 252,824 | 262,682 | 288,103 | |
Software | 352,595 | 348,661 | 386,506 | |
Rentals | 386,348 | 412,738 | 441,663 | |
Financing | 331,416 | 366,547 | 410,035 | |
Support services | 478,536 | 512,820 | 554,764 | |
Business services | 1,068,426 | 827,676 | 801,830 | |
Total revenue | 3,549,948 | 3,406,575 | 3,578,060 | |
Costs and expenses: | ||||
Cost of equipment sales | 340,745 | 331,942 | 331,069 | |
Cost of supplies | 82,992 | 81,420 | 88,802 | |
Cost of software | 101,969 | 105,841 | 113,580 | |
Cost of rentals | 84,270 | 76,040 | 84,188 | |
Financing interest expense | 50,665 | 55,241 | 71,791 | |
Cost of support services | 288,976 | 295,685 | 322,960 | |
Cost of business services | 773,052 | 568,509 | 546,201 | |
Selling, general and administrative | 1,237,739 | 1,200,327 | 1,279,961 | |
Research and development | 129,767 | 121,306 | 110,156 | |
Restructuring charges and asset impairments, net | 59,431 | 63,296 | 25,782 | |
Goodwill impairment | 0 | 171,092 | 0 | |
Interest expense, net | 113,497 | 88,970 | 87,583 | |
Other expense (income), net | 3,856 | 536 | (94,838) | |
Total costs and expenses | 3,266,959 | 3,160,205 | 2,967,235 | |
Income from continuing operations before income taxes | 282,989 | 246,370 | 610,825 | |
Provision for income taxes | 21,649 | 131,819 | 189,778 | |
Income from continuing operations | 261,340 | 114,551 | 421,047 | |
(Loss) income from discontinued operations, net of tax | 0 | (2,701) | 5,271 | |
Net income | 261,340 | 111,850 | 426,318 | |
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests | 0 | 19,045 | 18,375 | |
Net income - Pitney Bowes Inc. | 261,340 | 92,805 | 407,943 | |
Amounts attributable to common stockholders: | ||||
Net income from continuing operations | 261,340 | 95,506 | 402,672 | |
(Loss) income from discontinued operations, net of tax | 0 | (2,701) | 5,271 | |
Net income - Pitney Bowes Inc. | $ 261,340 | $ 92,805 | $ 407,943 | |
Basic earnings per share attributable to common stockholders: | ||||
Continuing operations (in dollars per share) | [1] | $ 1.40 | $ 0.51 | $ 2.01 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.01) | 0.03 |
Net income - Pitney Bowes Inc. (in dollars per share) | [1] | 1.40 | 0.49 | 2.04 |
Diluted earnings per share attributable to common stockholders: | ||||
Continuing operations (in dollars per share) | [1] | 1.39 | 0.51 | 2 |
Discontinued operations (in dollars per share) | [1] | 0 | (0.01) | 0.03 |
Net income - Pitney Bowes Inc. (in dollars per share) | [1] | 1.39 | 0.49 | 2.03 |
Dividends declared per share of common stock (in dollars per share) | $ 0.7500 | $ 0.7500 | $ 0.7500 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 261,340 | $ 111,850 | $ 426,318 |
Less: Preferred stock dividends attributable to noncontrolling interests | 0 | 19,045 | 18,375 |
Net income - Pitney Bowes Inc. | 261,340 | 92,805 | 407,943 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translations | 106,391 | (4,464) | (88,137) |
Net unrealized gain on cash flow hedges, net of tax of $678, $1,513, and $484, respectively | 1,079 | 2,427 | 777 |
Net unrealized gain (loss) on available for sale securities, net of tax of $944, $(244) and $(1,427), respectively | 1,477 | (416) | (2,430) |
Adjustments to pension and postretirement plans, net of tax of $3,089, $(17,550) and $13,844, respectively | 12,185 | (73,141) | 19,146 |
Amortization of pension and postretirement costs, net of tax of $13,936, $14,430, and $15,966, respectively | 26,828 | 24,096 | 28,165 |
Other comprehensive income (loss) | 147,960 | (51,498) | (42,479) |
Comprehensive income - Pitney Bowes Inc. | $ 409,300 | $ 41,307 | $ 365,464 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gain (loss) on cash flow hedges, tax | $ 678 | $ 1,513 | $ 484 |
Net unrealized loss on investment securities, tax | 944 | (244) | (1,427) |
Adjustments to pension and postretirement plans, tax | 3,089 | (17,550) | 13,844 |
Amortization of pension and postretirement costs, tax | $ 13,936 | $ 14,430 | $ 15,966 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,009,021 | $ 764,522 |
Short-term investments | 48,988 | 38,448 |
Accounts receivable (net of allowance of $15,985 and $14,372 respectively) | 524,424 | 455,527 |
Short-term finance receivables (net of allowance of $12,187 and $13,323, respectively) | 828,003 | 893,950 |
Inventories | 89,679 | 92,726 |
Current income taxes | 58,439 | 11,373 |
Other current assets and prepayments | 77,954 | 68,637 |
Total current assets | 2,636,508 | 2,325,183 |
Property, plant and equipment, net | 379,044 | 314,603 |
Rental property and equipment, net | 185,741 | 188,054 |
Long-term finance receivables (net of allowance of $6,446 and $7,177, respectively) | 652,087 | 673,207 |
Goodwill | 1,952,444 | 1,571,335 |
Intangible assets, net | 272,186 | 165,172 |
Noncurrent income taxes | 59,909 | 74,806 |
Other assets | 540,796 | 524,773 |
Total assets | 6,678,715 | 5,837,133 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,486,741 | 1,378,822 |
Current income taxes | 8,823 | 34,434 |
Current portion of long-term obligations | 271,057 | 614,485 |
Advance billings | 288,372 | 299,878 |
Total current liabilities | 2,054,993 | 2,327,619 |
Deferred taxes on income | 234,643 | 204,289 |
Tax uncertainties and other income tax liabilities | 116,551 | 61,276 |
Long-term debt | 3,559,278 | 2,750,405 |
Other noncurrent liabilities | 524,689 | 597,204 |
Total liabilities | 6,490,154 | 5,940,793 |
Commitments and contingencies (See Note 14) | ||
Stockholders' equity (deficit): | ||
Cumulative preferred stock, $50 par value, 4% convertible | 1 | 1 |
Cumulative preference stock, no par value, $2.12 convertible | 441 | 483 |
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 138,367 | 148,125 |
Retained earnings | 5,229,584 | 5,107,734 |
Accumulated other comprehensive loss | (792,173) | (940,133) |
Treasury stock, at cost (136,734,174 and 137,669,194 shares, respectively) | (4,710,997) | (4,743,208) |
Total Pitney Bowes Inc. stockholders’ equity (deficit) | 188,561 | (103,660) |
Total liabilities and stockholders’ equity (deficit) | $ 6,678,715 | $ 5,837,133 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 15,985 | $ 14,372 |
Short-term finance receivables allowance | 12,187 | 13,323 |
Long-term finance receivables allowance | $ 6,446 | $ 7,177 |
Preferred stock, par value (in dollars per share) | $ 50 | $ 50 |
Preferred stock, dividend rate | 4.00% | 4.00% |
Preference stock, dividend (in dollars per share) | $ 2.12 | $ 2.12 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 480,000,000 | 480,000,000 |
Common stock issued (in shares) | 323,337,912 | 323,337,912 |
Treasury stock (in shares) | 136,734,174 | 137,669,194 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 261,340 | $ 111,850 | $ 426,318 |
Restructuring payments | (40,804) | (64,930) | (62,086) |
Special pension plan contribution | 0 | (36,731) | 0 |
Net tax payments from other investments | 0 | 0 | (20,602) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Restructuring charges and asset impairments | 59,431 | 63,296 | 25,782 |
Goodwill impairment | 0 | 171,092 | 0 |
Depreciation and amortization | 182,336 | 178,486 | 173,312 |
Loss (gain) on sale of businesses | 0 | 5,786 | (105,826) |
Gain on sale of technology | (6,085) | 0 | 0 |
Gain on sale of leveraged lease assets, net of tax | 0 | (2,152) | |
Gain on debt forgiveness | 0 | (10,000) | 0 |
Stock-based compensation | 24,389 | 14,882 | 21,049 |
Deferred tax (benefit) provision | (23,882) | 3,940 | 40,184 |
Changes in operating assets and liabilities, net of acquisitions/divestitures: | |||
(Increase) decrease in accounts receivable | (20,590) | 22,559 | (35,925) |
Decrease in finance receivables | 125,991 | 119,883 | 95,341 |
Decrease (increase) in inventories | 5,565 | (6,995) | (7,621) |
Decrease (increase) in other current assets and prepayments | 8,743 | 7,260 | (10,557) |
Decrease in accounts payable and accrued liabilities | (14,084) | (59,450) | (94,722) |
(Decrease) increase in current and non-current income taxes | (16,013) | (1,035) | 21,567 |
(Decrease) increase in advance billings | (26,029) | (40,248) | 1,344 |
Other, net | (24,495) | 16,477 | 57,583 |
Net cash provided by operating activities | 495,813 | 496,122 | 522,989 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (125,055) | (212,810) | (205,256) |
Proceeds from sales/maturities of available-for-sale securities | 113,501 | 211,696 | 207,063 |
Net change in short-term and other investments | (8,284) | 75,654 | (69,017) |
Capital expenditures | (170,990) | (160,831) | (166,746) |
Proceeds from sale of assets | 5,458 | 17,671 | 52,110 |
Reserve account deposits | 10,954 | (2,183) | (24,202) |
Proceeds from sale of businesses, net of cash transferred | 0 | 0 | 289,211 |
Acquisitions, net of cash acquired | (482,853) | (37,842) | (393,695) |
Other investing activities | (5,751) | (6,908) | 7,339 |
Net cash used in investing activities | (663,020) | (115,553) | (303,193) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,436,660 | 894,744 | 150,950 |
Principal payments of long-term obligations | (964,550) | (371,007) | (516,070) |
(Decrease) increase in short-term borrowings | 0 | (90,000) | 90,000 |
Dividends paid to stockholders | (139,490) | (140,608) | (150,114) |
Dividends paid to noncontrolling interests | 0 | (18,528) | (18,375) |
Common stock repurchases | 0 | (197,267) | (131,719) |
Redemption of noncontrolling interests | 0 | (300,000) | 0 |
Other financing activities | 35,127 | (6,863) | (3,330) |
Net cash provided by (used in) financing activities | 367,747 | (229,529) | (578,658) |
Effect of exchange rate changes on cash and cash equivalents | 43,959 | (26,708) | (44,387) |
Increase (decrease) in cash and cash equivalents | 244,499 | 124,332 | (403,249) |
Cash and cash equivalents at beginning of period | 764,522 | 640,190 | 1,043,439 |
Cash and cash equivalents at end of period | 1,009,021 | 764,522 | 640,190 |
Cash interest paid | 169,279 | 150,567 | 165,287 |
Cash income tax payments, net of refunds | $ 53,247 | $ 127,299 | $ 138,877 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred stock | Preference stock | Common Stock | Additional Paid-in Capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock |
Balance at Dec. 31, 2014 | $ 77,259 | $ 1 | $ 548 | $ 323,338 | $ 178,852 | $ 4,897,708 | $ (846,156) | $ (4,477,032) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income - Pitney Bowes Inc. | 407,943 | 407,943 | ||||||
Other comprehensive income (loss) | (42,479) | (42,479) | ||||||
Cash dividends | ||||||||
Common | (150,073) | (150,073) | ||||||
Preference | (41) | (41) | ||||||
Issuances of common stock | (3,218) | (37,705) | 34,487 | |||||
Conversions to common stock | 0 | (43) | (916) | 959 | ||||
Stock-based compensation | 21,049 | 21,049 | ||||||
Repurchase of common stock | (131,719) | (131,719) | ||||||
Balance at Dec. 31, 2015 | 178,721 | 1 | 505 | 323,338 | 161,280 | 5,155,537 | (888,635) | (4,573,305) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income - Pitney Bowes Inc. | 92,805 | 92,805 | ||||||
Other comprehensive income (loss) | (51,498) | (51,498) | ||||||
Cash dividends | ||||||||
Common | (140,570) | (140,570) | ||||||
Preference | (38) | (38) | ||||||
Issuances of common stock | (970) | (27,856) | 26,886 | |||||
Conversions to common stock | 0 | (22) | (456) | 478 | ||||
Stock-based compensation | 15,157 | 15,157 | ||||||
Repurchase of common stock | (197,267) | (197,267) | ||||||
Balance at Dec. 31, 2016 | (103,660) | 1 | 483 | 323,338 | 148,125 | 5,107,734 | (940,133) | (4,743,208) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income - Pitney Bowes Inc. | 261,340 | 261,340 | ||||||
Other comprehensive income (loss) | 147,960 | 147,960 | ||||||
Cash dividends | ||||||||
Common | (139,454) | (139,454) | ||||||
Preference | (36) | (36) | ||||||
Issuances of common stock | (1,978) | (33,316) | 31,338 | |||||
Conversions to common stock | 0 | (42) | (831) | 873 | ||||
Stock-based compensation | 24,389 | 24,389 | ||||||
Balance at Dec. 31, 2017 | $ 188,561 | $ 1 | $ 441 | $ 323,338 | $ 138,367 | $ 5,229,584 | $ (792,173) | $ (4,710,997) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Consolidated Financial Statements of Pitney Bowes Inc. (we, us, our, or the company) and its wholly owned subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and accompanying disclosures, including the disclosure of contingent assets and liabilities. These estimates and assumptions are based on management's best knowledge of current events, historical experience and other information available when the financial statements are prepared. These estimates include, but are not limited to, revenue recognition for multiple element arrangements, the allocation of purchase price to tangible and intangible assets acquired and liabilities assumed in business combinations, goodwill and intangible asset impairment review, allowance for doubtful accounts and credit losses, residual values of leased assets, useful lives of long-lived and intangible assets, restructuring costs, pension and other postretirement costs, income tax reserves, deferred tax asset valuation allowance, stock-based compensation expense and loss contingencies. Actual results could differ from those estimates and assumptions. Cash Equivalents and Investments Cash equivalents include highly-liquid interest-earning investments with a maturity of three months or less at the date of purchase. Short-term investments include investments with an original maturity of greater than three months but less than one year from the reporting date. Our investment securities are primarily classified as available-for-sale and recorded at fair value, with unrealized gains and losses, excluding other-than-temporary impairments, reported in other comprehensive income, net of tax. Purchase premiums and discounts are amortized using the effective interest method over the term of the security. Gains and losses on the sale of available-for-sale securities are recorded on the trade date using the specific identification method. Investment securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Investment securities are recorded in the Consolidated Balance Sheets as cash and cash equivalents, short-term investments and other assets depending on the investment's maturity. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due within 30 days after the invoice date. Accounts 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 accounts receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We estimate the probable losses on accounts receivable and provide an allowance for doubtful accounts. Our estimate is based on historical loss experience, the age of the receivables, specific troubled accounts and other currently available information. We continually evaluate the adequacy of the allowance for doubtful accounts and make adjustments as necessary. Finance Receivables and Allowance for Credit Losses Finance receivables are composed of sales-type lease receivables and unsecured revolving loan receivables. We estimate the probable losses and provide an allowance for credit losses. Our estimate is based on historical loss experience, the nature and volume of our portfolios, specific troubled accounts, and our ability to manage the collateral. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. 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 the client's payments reduce the account aging to less than 60 days 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 low because of the geographic and industry diversification of our clients and small account balances for most of our clients. Inventories Inventories are stated at the lower of cost or market. Cost is determined on the last-in, first-out (LIFO) basis for most U.S. inventories and on the first-in, first-out (FIFO) basis for most non-U.S. inventories. Fixed Assets Property, plant and equipment and rental equipment are stated at cost and depreciated principally using the straight-line method over their estimated useful lives, which are up to 50 years for buildings, 10 to 20 years for building improvements, three to 12 years for machinery and equipment, four to six years for rental equipment and three to five years for computer equipment. Major improvements which add to productive capacity or extend the life of an asset are capitalized while repairs and maintenance are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Fully depreciated assets are retained in fixed assets and accumulated depreciation until they are removed from service. We capitalize certain costs for materials and services, payroll and other personnel-related costs and interest in the development of internal use software. These costs are amortized on a straight-line basis over three to 10 years. Intangible assets Finite-lived intangible assets are amortized using either the straight-line method or an accelerated attrition method. Estimated useful lives range from one to 15 years. Research and Development Costs Research and product development costs include engineering costs related to research and product development activities and are expensed as incurred. Impairment Review for Long-lived and Finite-Lived Intangible Assets Long-lived assets and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset is compared to the asset's carrying value. If the sum of the undiscounted cash flows is less than the asset's carrying value, an impairment charge is recorded for an amount by which the asset's carrying value exceeds its fair value. The fair value of the impaired asset is determined using probability weighted expected cash flow estimates, quoted market prices when available and appraisals, as appropriate. We derive cash flow estimates from our long-term business plans and historical experience. Impairment Review for Goodwill Goodwill is tested annually for impairment at the reporting unit level during the fourth quarter or sooner when circumstances indicate an impairment may exist. The impairment test for goodwill determines the fair value of each reporting unit and compares it to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit is less than its carrying value an impairment loss is recognized for the difference, not to exceed the carrying amount of goodwill. Retirement Plans Net periodic benefit cost includes current service cost, interest cost, expected return on plan assets and the amortization of actuarial gains and losses. Actuarial gains and losses arise from actual experiences that differ from previous assumptions as well as changes in assumptions including expected return on plan assets, discount rates used to measure pension and other postretirement obligations and life expectancy. The expected return on assets is measured using the market-related value of assets, which is a calculated value that recognizes changes in the fair value of plan assets over five years. Actuarial gains and losses are recognized in other comprehensive income, net of tax, and amortized to benefit cost primarily over the life expectancy of plan participants. The funded status of pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. Stock-based Compensation We measure compensation expense for stock-based awards based on the estimated fair value of the awards expected to vest (net of estimated forfeitures) and recognize the expense on a straight-line basis over the requisite service period. The fair value of stock awards is estimated based on the fair value of our common stock on the grant date, less the present value of expected dividends or using a Black-Scholes valuation model or a Monte Carlo simulation model. The determination of fair value requires assumptions be made regarding the expected stock price volatility, risk-free interest rate, life of the award and dividend yield. The expected stock price volatility is based on historical price changes of our stock. The risk-free interest rate is based on U.S. Treasuries with a term equal to the expected life of the award. The expected life of the award and expected dividend yield are based on historical experience. We believe that the valuation techniques and underlying assumptions are appropriate in estimating the fair value of stock awards. The majority of stock-based compensation expense is recorded in selling, general and administrative expense. Revenue Recognition We derive revenue from multiple sources including sales, rentals, financing and services. Certain transactions are consummated at the same time and can therefore generate revenue from multiple sources. The most common form of these transactions involves a sale or noncancelable lease of equipment, a meter rental and an equipment maintenance agreement. In these multiple element arrangements, revenue is allocated to each of the elements based on relative "selling prices" determined based on vendor specific objective evidence (VSOE). We establish VSOE of selling prices based on the prices charged for each element when sold separately in standalone transactions. The allocation of relative selling price to the various elements impacts the timing of revenue recognition, but does not change the total revenue recognized. Revenue is allocated to the meter rental and equipment maintenance agreement elements using their respective selling prices charged in standalone and renewal transactions. For a sale transaction, revenue is allocated to the equipment based on a range of selling prices in standalone transactions. For a lease transaction, revenue is allocated to the equipment based on the present value of the remaining minimum lease payments. The amount allocated to equipment is compared to the range of selling prices in standalone transactions during the period to ensure the allocated equipment amount approximates average selling prices. More specifically, revenue related to our offerings is recognized as follows: Sales Revenue Sales of Equipment We sell equipment directly to our customers and to distributors (re-sellers) throughout the world. We recognize revenue from these sales when the risks and rewards of ownership transfer to the client, which is generally upon shipment or acceptance by the customer. We recognize revenue from the sale of equipment under sales-type leases as equipment sales revenue at the inception of the lease. We do not typically offer any rights of return or stock balancing rights. Sales revenue from customized equipment, mail creation equipment and shipping products is generally recognized when installed. Sales of Supplies Revenue related to supplies is generally recognized upon delivery. Standalone Software Sales and Integration Services We also have multiple element arrangements containing only software and software related elements. Software related elements may include maintenance and support services, data subscriptions, training and integration services. Under these multiple element arrangements, we allocate revenue based on VSOE for software related elements and use the residual method to determine the amount of software licenses revenue. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the consideration is allocated to the delivered elements and recognized as revenue. The majority of our software license arrangements are bundled with maintenance and support services and we establish VSOE of fair value using a bell-shaped curve analysis for maintenance and support services renewal rates. If we cannot obtain VSOE for any undelivered software element, revenue is deferred until all deliverables have been delivered or until VSOE can be determined for any remaining undelivered software elements. We recognize revenue from standalone software licenses upon delivery of the product when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. For software licenses that are included in a lease contract, we recognize revenue upon shipment of the software unless the lease contract specifies that the license expires at the end of the lease or the price of the software is deemed not fixed or determinable based on historical evidence of similar software leases. In these instances, revenue is recognized on a straight-line basis over the term of the lease contract. We recognize revenue from software requiring integration services at the point of customer acceptance. We recognize revenue related to off-the-shelf perpetual software licenses generally upon shipment. Rentals Revenue We rent equipment, primarily postage meters and mailing equipment, under short-term rental agreements. Rentals revenue includes revenue from the subscription for digital meter services. We may invoice in advance for postage meter rentals according to the terms of the agreement. We initially defer these advanced billings and recognize rentals revenue on a straight-line basis over the invoice period. Revenues generated from financing clients for the continued use of equipment subsequent to the expiration of the original lease are recognized as rentals revenue. We capitalize certain initial direct costs incurred in consummating a rental transaction and recognize these costs over the expected term of the agreement. At December 31, 2017 and 2016, there were $10 million and $11 million , respectively, of initial direct costs included in rental property and equipment, net in the Consolidated Balance Sheets. Amortization of initial direct costs was $5 million , $7 million and $8 million in 2017 , 2016 and 2015 , respectively. Financing Revenue We provide lease financing for our products primarily through sales-type leases. We also provide revolving lines of credit to our clients for the purchase of postage and supplies. We believe that our sales-type lease portfolio contains only normal collection risk. Accordingly, we record the fair value of equipment as sales revenue, the cost of equipment as cost of sales and the minimum lease payments plus the estimated residual value as finance receivables. The difference between the finance receivable and the equipment fair value is recorded as unearned income and is amortized as income over the lease term using the interest method. Equipment residual values are determined at inception of the lease using estimates of fair value at the end of the lease term. Fair value estimates are based primarily on historical experience. We also consider forecasted supply and demand for products, product retirement and launch plans, client behavior, regulatory changes, remanufacturing strategies, used equipment markets competition and technological changes. We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Estimated increases in future residual values are not recognized until the equipment is remarketed. Support Services Revenue We provide support services for our equipment primarily through maintenance contracts. Revenue related to these agreements is recognized on a straight-line basis over the term of the agreement. Business Services Revenue Business services revenue includes revenue from presort mail services, global ecommerce solutions and shipping solutions and is recognized as services are provided. We also evaluate the appropriateness of recording revenue on a gross basis when we act as a principal in a transaction or net basis when we act as an agent between a client and vendor. We consider several factors in determining whether we are acting as principal or agent such as whether we are the primary obligor to the client, have control over the pricing and have credit risk. Shipping and Handling Shipping and handling costs are recognized as incurred and recorded in cost of revenues. Deferred Marketing Costs We capitalize certain costs associated with the acquisition of new customers and recognize these costs over the expected revenue stream of eight years . At December 31, 2017 and 2016, deferred marketing costs were $36 million and $38 million , respectively. Amortization of deferred marketing costs was $13 million , $15 million and $18 million in 2017 , 2016 and 2015 , respectively. We review individual marketing programs for impairment on a quarterly basis or as circumstances warrant. Restructuring Charges Costs associated with restructuring actions include employee severance, other employee separation costs and contract termination costs, including leases. These costs are recognized when a liability is incurred, which is generally upon communication to the affected employees or exit from a leased facility, and the amount to be paid is both probable and reasonably estimable. Severance accruals are based on company policy, historical experience and negotiated settlements. Derivative Instruments In the normal course of business, we are exposed to the impact of changes in foreign currency exchange rates and interest rates. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivative instruments to limit the effects of currency exchange rate fluctuations on financial results and manage the related cost of debt. We do not use derivatives for trading or speculative purposes. We record our derivative instruments at fair value and the accounting for changes in fair value 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. To qualify as a hedge, a derivative must be highly effective in offsetting the risk designated for hedging purposes. The hedge relationship must be formally documented at inception, detailing the particular risk management objective and strategy for the hedge. The effectiveness of the hedge relationship is evaluated on a retrospective and prospective basis. The use of derivative instruments exposes us to counterparty credit risk. To mitigate such risks, we enter into contracts with only those financial institutions that meet stringent credit requirements. We regularly review our credit exposure balances as well as the creditworthiness of our counterparties. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties. Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date of such change. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. In estimating the necessity and amount of a valuation allowance, we consider all available evidence for each jurisdiction including historical operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. We adjust the valuation allowance through income tax expense when new information becomes available that would alter our determination of the amount of deferred tax assets that will ultimately be realized. Earnings per Share Basic earnings per share is computed on the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed based on the weighted-average number of common shares plus the dilutive effect of preference and preferred shares, stock awards and employee stock purchase plans. Translation of Non-U.S. Currency Amounts In general, the functional currency of our foreign operations is the local currency. Assets and liabilities of subsidiaries operating outside the U.S. are translated at rates in effect at the end of the period and revenue and expenses are translated at average monthly rates during the period. Net deferred translation gains and losses are included as a component of accumulated other comprehensive income. Loss Contingencies In the ordinary course of business, we are routinely defendants in, or party to, a number of pending and threatened legal actions. On a quarterly basis, we review the status of each significant matter and assess the potential financial exposure. If the potential loss from any claim or legal action is considered probable and can be reasonably estimated, we establish a liability for the estimated loss. The assessment of the ultimate outcome of each claim or legal action and the determination of the potential financial exposure requires significant judgment. Estimates of potential liabilities for claims or legal actions are based only on information that is available at that time. As additional information becomes available, we may revise our estimates, and these revisions could have a material impact on our results of operations and financial position. Legal fees are expensed as incurred. New Accounting Pronouncements New Accounting Pronouncements - Standards Adopted in 2017 In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) . The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on certain specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We elected to early adopt this standard effective October 1, 2017. Accordingly, a $7 million premium payment associated with the early extinguishment of debt was classified as financing activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2017. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the current two-step goodwill impairment test and requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). The ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We elected to early adopt this standard effective January 1, 2017. The adoption of this standard had no impact on our consolidated financial statements or disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The standard includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. We retroactively adopted this ASU effective January 1, 2017. Accordingly, the Condensed Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 has been recast to reclassify cash payments of $5 million and $8 million , respectively, from operating activities to financing activities. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory , which requires inventory to be measured at the lower of cost and net realizable value (estimated selling price less reasonably predictable costs of completion, disposal and transportation). Inventory measured under LIFO is not impacted by the new guidance. This standard became effective January 1, 2017 and there was no impact on our consolidated financial statements or disclosures. New Accounting Pronouncements - Standards Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU changes the recognition and presentation requirements of hedge accounting and reduces the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing and hedge documentation. We will early adopt this standard as of January 1, 2018 and there will be no impact on our consolidated financial statements as of that date. The impact on our consolidated financial statements will depend on the facts and circumstances of any future transactions. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting . The ASU provides guidance about which changes to terms and conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective beginning January 1, 2018 and would be applied prospectively to awards modified on or after the effective date. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The standard will be applied on a modified retrospective basis through a cumulative effect adjustment as of the beginning of the period of adoption. The standard is effective beginning January 1, 2019, however early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. The standard is effective beginning January 1, 2018. The adoption of this standard will impact how net periodic pension costs are reported on the face of our income statement, but will not have an impact on our income from continuing operations or net income. In January 2017, the FASB issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting . The ASU requires separate disclosure in the statement of net assets available for benefits and the statement of changes in net assets available for benefits of changes in any interests held in a Master Trust and other enhanced disclosures. The standard is effective beginning January 1, 2019. We are currently evaluating the impact of this standard on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities in evaluating whether transactions should be accounted for as an acquisition or disposal of assets or a business. The standard is effective beginning January 1, 2018. The impact on our consolidated financial statements will depend on the facts and circumstances of any future transactions. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-entity Transfers of Assets other than Inventory, which requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under current guidance, the tax effects of transfers are deferred until the transferred asset is sold or otherwise recovered through use. The standard is effective beginning January 1, 2018. The adoption of this standard will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses . The ASU sets forth a “current expected credit loss” (CECL) model, which requires companies to measure expected credit losses for all financial instruments held at the reporting date based on historical experience, current conditions and reasonably supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective beginning January 1, 2020. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. This standard, among other things, requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability and provide enhanced disclosures. The standard is effective beginning January 1, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The standard is effective beginning January 1, 2018. The adoption of this standard will not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires companies to recognize revenue when or as control of a promised good or service is transferred to a client in amounts that reflect the consideration the company expects to receive in exchange for those goods and services. In addition, the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue. The standard is effective beginning January 1, 2018 and can be adopted either retrospectively to each reporting period presented or on a modified retrospective basis with a cumulative effect adjustment at the date of the initial application. We will adopt the standard on the modified retrospective basis with a cumulative effect adjustment, which will not be material to the consolidated financial statements. Based on our assessment of the standard, we will not have changes in revenue recognition for the majority of our product and service offerings. The standard will have the most impact on the timing of certain revenues in our Softwa |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Effective January 1, 2017, we revised our segment reporting to reflect a change in how we manage and report office shipping solutions, which were previously reported within the Global Ecommerce segment. The needs of retail and ecommerce clients differ from those of office shipping clients. Accordingly, we now report the results for office shipping solutions within Small & Medium Business Solutions and the retail and ecommerce shipping solutions remain in Global Ecommerce. 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 mailing and office solutions, financing services and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada. International Mailing : Includes the revenue and related expenses from mailing and office solutions, financing services and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in areas outside the U.S. and Canada. Enterprise Business Solutions: Production Mail: Includes the worldwide revenue and related expenses from the sale of production mail inserting and sortation equipment, high-speed production print systems, supplies and related support services to large enterprise clients to process inbound and outbound mail. Presort Services : Includes revenue and related expenses from presort services for large enterprise clients to qualify large mail volumes for postal worksharing discounts. Digital Commerce Solutions: Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information, and location intelligence software solutions and related support services. Global Ecommerce: Include the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions, including fulfillment and returns. We determine segment 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 and believes that it provides a useful measure of 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. The following tables provide information about our reportable segments. Revenues Years Ended December 31, 2017 2016 2015 North America Mailing $ 1,356,561 $ 1,427,094 $ 1,530,060 International Mailing 383,670 411,642 449,828 Small & Medium Business Solutions 1,740,231 1,838,736 1,979,888 Production Mail 407,194 404,703 421,178 Presort Services 497,901 475,582 473,612 Enterprise Business Solutions 905,095 880,285 894,790 Software Solutions 352,380 348,234 385,908 Global Ecommerce 552,242 339,320 262,667 Digital Commerce Solutions 904,622 687,554 648,575 Other — — 54,807 Total revenue $ 3,549,948 $ 3,406,575 $ 3,578,060 Geographic data: United States $ 2,738,711 $ 2,589,535 $ 2,681,285 Outside United States 811,237 817,040 896,775 Total $ 3,549,948 $ 3,406,575 $ 3,578,060 EBIT Years Ended December 31, 2017 2016 2015 North America Mailing $ 497,809 $ 592,978 $ 663,031 International Mailing 48,164 44,806 49,071 Small & Medium Business Solutions 545,973 637,784 712,102 Production Mail 50,513 54,061 48,254 Presort Services 97,506 95,258 104,655 Enterprise Business Solutions 148,019 149,319 152,909 Software Solutions 41,635 30,159 48,531 Global Ecommerce (17,899 ) 3,043 5,110 Digital Commerce Solutions 23,736 33,202 53,641 Other — — 10,569 Total EBIT 717,728 820,305 929,221 Reconciling items: Interest, net (164,162 ) (144,211 ) (159,374 ) Unallocated corporate expenses (204,211 ) (189,215 ) (213,095 ) Goodwill impairment — (171,092 ) — Restructuring charges and asset impairments, net (59,431 ) (63,296 ) (25,782 ) Gain on sale of technology 6,085 — — Acquisition/disposition related expenses (9,164 ) (5,585 ) (14,983 ) Other (expense) income, net (3,856 ) (536 ) 94,838 Income from continuing operations before income taxes 282,989 246,370 610,825 Provision for income taxes 21,649 131,819 189,778 (Loss) income from discontinued operations, net of tax — (2,701 ) 5,271 Net income $ 261,340 $ 111,850 $ 426,318 Depreciation and amortization Years Ended December 31, 2017 2016 2015 North America Mailing $ 64,803 $ 60,066 $ 58,141 International Mailing 18,562 19,431 23,262 Small & Medium Business Solutions 83,365 79,497 81,403 Production Mail 2,686 4,421 4,075 Presort Services 26,541 27,929 27,305 Enterprise Business Solutions 29,227 32,350 31,380 Software Solutions 8,978 14,621 18,151 Global Ecommerce 36,662 30,607 21,025 Digital Commerce Solutions 45,640 45,228 39,176 Other — — 2,057 Total for reportable segments 158,232 157,075 154,016 Unallocated amount 24,104 21,411 19,296 Total depreciation and amortization $ 182,336 $ 178,486 $ 173,312 Capital expenditures Years Ended December 31, 2017 2016 2015 North America Mailing $ 69,131 $ 83,547 $ 60,621 International Mailing 11,982 3,163 11,196 Small & Medium Business Solutions 81,113 86,710 71,817 Production Mail 2,893 1,599 3,418 Presort Services 20,860 17,537 17,096 Enterprise Business Solutions 23,753 19,136 20,514 Software Solutions 9,181 4,617 1,688 Global Ecommerce 26,810 15,647 17,321 Digital Commerce Solutions 35,991 20,264 19,009 Other — — 857 Total for reportable segments 140,857 126,110 112,197 Unallocated amount 30,133 34,721 54,549 Total capital expenditures $ 170,990 $ 160,831 $ 166,746 Assets December 31, 2017 2016 2015 North America Mailing $ 1,959,206 $ 2,066,480 $ 2,562,816 International Mailing 552,570 532,647 594,564 Small & Medium Business Solutions 2,511,776 2,599,127 3,157,380 Production Mail 260,977 239,358 244,156 Presort Services 387,701 373,443 374,647 Enterprise Business Solutions 648,678 612,801 618,803 Software Solutions 658,737 645,349 858,308 Global Ecommerce 1,016,045 449,363 438,917 Digital Commerce Solutions 1,674,782 1,094,712 1,297,225 Total for reportable segments 4,835,236 4,306,640 5,073,408 Reconciliation to consolidated amount: Cash and cash equivalents 1,009,021 764,522 640,190 Short-term investments 48,988 38,448 127,388 Other corporate assets 785,470 727,523 282,146 Total assets $ 6,678,715 $ 5,837,133 $ 6,123,132 Identifiable long-lived assets: United States $ 506,064 $ 441,443 $ 434,557 Outside United States 58,250 61,214 73,046 Total $ 564,314 $ 502,657 $ 507,603 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The calculations of basic and diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 are presented below. The sum of earnings per share amounts may not equal the totals due to rounding. Years Ended December 31, 2017 2016 2015 Numerator: Net income from continuing operations $ 261,340 $ 95,506 $ 402,672 (Loss) income from discontinued operations — (2,701 ) 5,271 Net income (numerator for diluted EPS) 261,340 92,805 407,943 Less: Preference stock dividend 36 38 41 Income attributable to common stockholders (numerator for basic EPS) $ 261,304 $ 92,767 $ 407,902 Denominator (in thousands): Weighted-average shares used in basic EPS 186,332 187,945 199,835 Effect of dilutive shares 1,103 1,030 1,110 Weighted-average shares used in diluted EPS 187,435 188,975 200,945 Basic earnings per share: Continuing operations $ 1.40 $ 0.51 $ 2.01 Discontinued operations — (0.01 ) 0.03 Net income attributable to Pitney Bowes Inc. $ 1.40 $ 0.49 $ 2.04 Diluted earnings per share: Continuing operations $ 1.39 $ 0.51 $ 2.00 Discontinued operations — (0.01 ) 0.03 Net income attributable to Pitney Bowes Inc. $ 1.39 $ 0.49 $ 2.03 Anti-dilutive options excluded from diluted earnings per share (in thousands): 10,267 8,126 8,079 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Raw materials $ 30,166 $ 28,541 Work in process 4,981 6,498 Supplies and service parts 45,366 45,152 Finished products 21,765 24,678 Inventory at FIFO cost, net 102,278 104,869 Excess of FIFO cost over LIFO cost (12,599 ) (12,143 ) Total inventory, net $ 89,679 $ 92,726 |
Finance Assets
Finance Assets | 12 Months Ended |
Dec. 31, 2017 | |
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 clients for postage and supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances. Interest on loan receivables is recognized using the effective interest method. Annual fees are initially deferred and recognized ratably over the annual period covered. Customer acquisition costs are expensed as incurred. Finance receivables at December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,023,549 $ 292,059 $ 1,315,608 $ 1,088,053 $ 273,262 $ 1,361,315 Unguaranteed residual values 74,093 14,202 88,295 90,190 13,655 103,845 Unearned income (216,720 ) (62,325 ) (279,045 ) (223,908 ) (60,458 ) (284,366 ) Allowance for credit losses (7,721 ) (2,794 ) (10,515 ) (8,247 ) (2,647 ) (10,894 ) Net investment in sales-type lease receivables 873,201 241,142 1,114,343 946,088 223,812 1,169,900 Loan receivables Loan receivables 339,373 34,492 373,865 374,147 32,716 406,863 Allowance for credit losses (7,098 ) (1,020 ) (8,118 ) (8,517 ) (1,089 ) (9,606 ) Net investment in loan receivables 332,275 33,472 365,747 365,630 31,627 397,257 Net investment in finance receivables $ 1,205,476 $ 274,614 $ 1,480,090 $ 1,311,718 $ 255,439 $ 1,567,157 Loans receivable are due within one year. Maturities of gross sales-type lease finance receivables at December 31, 2017 were as follows: Sales-type Lease Receivables North America International Total 2018 $ 513,886 $ 130,804 $ 644,690 2019 262,303 74,546 336,849 2020 154,581 49,203 203,784 2021 70,307 27,443 97,750 2022 18,340 9,104 27,444 Thereafter 4,132 959 5,091 Total $ 1,023,549 $ 292,059 $ 1,315,608 Allowance for Credit Losses Activity in the allowance for credit losses for the years ended December 31, 2017 , 2016 and 2015 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at December 31, 2014 $ 10,125 $ 5,023 $ 11,068 $ 1,788 $ 28,004 Amounts charged to expense 1,189 890 8,286 1,023 11,388 Accounts written off (4,708 ) (2,371 ) (9,330 ) (1,293 ) (17,702 ) Balance at December 31, 2015 6,606 3,542 10,024 1,518 21,690 Amounts charged to expense 5,136 1,161 6,238 836 13,371 Accounts written off (3,495 ) (2,056 ) (7,745 ) (1,265 ) (14,561 ) Balance at December 31, 2016 8,247 2,647 8,517 1,089 20,500 Amounts charged to expense 7,544 1,280 6,273 510 15,607 Accounts written off (8,070 ) (1,133 ) (7,692 ) (579 ) (17,474 ) Balance at December 31, 2017 $ 7,721 $ 2,794 $ 7,098 $ 1,020 $ 18,633 Aging of Receivables The aging of finance receivables at December 31, 2017 and 2016 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total December 31, 2017 1 - 90 days $ 971,002 $ 286,170 $ 330,503 $ 34,239 $ 1,621,914 > 90 days 52,547 5,889 8,870 253 67,559 Total $ 1,023,549 $ 292,059 $ 339,373 $ 34,492 $ 1,689,473 Past due amounts > 90 days Still accruing interest $ 10,807 $ 1,738 $ — $ — $ 12,545 Not accruing interest 41,740 4,151 8,870 253 55,014 Total $ 52,547 $ 5,889 $ 8,870 $ 253 $ 67,559 As of December 31, 2017, North American sales-type lease receivables aged greater than 90 days had a full contract value of $53 million . As of February 15, 2018, we received payments with a contract value of $28 million related to these receivables. Sales-type Lease Receivables Loan Receivables North America International North America International Total December 31, 2016 1 - 90 days $ 1,025,313 $ 269,247 $ 366,726 $ 32,420 $ 1,693,706 > 90 days 62,740 4,015 7,421 296 74,472 Total $ 1,088,053 $ 273,262 $ 374,147 $ 32,716 $ 1,768,178 Past due amounts > 90 days Still accruing interest $ 8,831 $ 972 $ — $ — $ 9,803 Not accruing interest 53,909 3,043 7,421 296 64,669 Total $ 62,740 $ 4,015 $ 7,421 $ 296 $ 74,472 Credit Quality The extension of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client's financial condition and, when applicable, payment history. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes ensure that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed. We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that 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 December 31, 2017 and 2016 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. Some accounts are not scored; however, 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 may become delinquent in the next 12 month period. • Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers. • Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers. • High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers. December 31, 2017 2016 Sales-type lease receivables Low $ 819,776 $ 879,823 Medium 148,000 135,953 High 21,728 22,600 Not Scored 34,045 49,677 Total $ 1,023,549 $ 1,088,053 Loan receivables Low $ 262,646 $ 296,598 Medium 56,744 53,647 High 6,791 7,216 Not Scored 13,192 16,686 Total $ 339,373 $ 374,147 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Land $ 9,333 $ 9,908 Buildings 207,024 185,431 Capitalized software 224,753 192,395 Machinery and equipment 703,924 610,597 1,145,034 998,331 Accumulated depreciation (765,990 ) (683,728 ) Property, plant and equipment, net $ 379,044 $ 314,603 Rental property and equipment $ 394,627 $ 400,913 Accumulated depreciation (208,886 ) (212,859 ) Rental property and equipment, net $ 185,741 $ 188,054 Depreciation expense was $149 million , $140 million and $136 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Acquisitions, Divestiture, Inta
Acquisitions, Divestiture, Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisitions, Divestiture, Intangible Assets and Goodwill | Acquisitions, Divestiture, Intangible Assets and Goodwill Acquisitions In October 2017, we acquired Newgistics for $471 million , net of cash acquired. Newgistics provides parcel delivery, returns, fulfillment and digital commerce solutions for retailers and ecommerce brands. Newgistics is reported within our Global Ecommerce segment. The allocation of the purchase price to the fair values of assets acquired and liabilities assumed was as follows: Accounts receivable $ 36,195 Other current assets 16,051 Fixed assets 26,933 Goodwill 330,272 Intangible assets 135,640 Accounts payable and other current liabilities (21,500 ) Deferred taxes, net (52,363 ) Other assets and liabilities, net (688 ) $ 470,540 Goodwill represents the excess of the purchase price over the fair values of assets acquired and liabilities assumed. Goodwill is primarily attributable to expected growth opportunities, synergies and other benefits that we believe will result from combining the operations of Newgistics with our operations. Goodwill from the Newgistics acquisition is not deductible for tax purposes. Intangible assets acquired consisted of the following: Value Amortization period Customer relationships $ 111,600 — 10 years Developed technology 19,000 — 5 years Tradenames 4,300 — 3 years Other 740 1-3 years Total intangible assets, net $ 135,640 The operating results of Newgistics are included in our consolidated results from the date of acquisition. Consolidated revenue for the year ended December 31, 2017 includes $140 million from Newgistics. Earnings from Newgistics included in our consolidated earnings were not significant. On a pro forma basis, had we acquired Newgistics on January 1, 2016, revenue would have been $341 million and $481 million higher for the years ended December 31, 2017 and 2016 , respectively. The impact on earnings would not have been material. Divestiture In May 2015, we sold Imagitas for net proceeds of $292 million . We recognized a pre-tax gain of $111 million , which was reported within other expense (income), net in the Consolidated Statements of Income. Intangible assets Intangible assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 526,149 $ (292,500 ) $ 233,649 $ 445,039 $ (300,906 ) $ 144,133 Software & technology 173,141 (144,742 ) 28,399 150,037 (136,508 ) 13,529 Trademarks & other 42,505 (32,367 ) 10,138 36,212 (28,702 ) 7,510 Total intangible assets, net $ 741,795 $ (469,609 ) $ 272,186 $ 631,288 $ (466,116 ) $ 165,172 Amortization expense for intangible assets was $34 million , $38 million and $37 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The future amortization expense for intangible assets at December 31, 2017 is as follows: Year ended December 31, 2018 $ 42,564 2019 38,838 2020 34,251 2021 30,631 2022 29,223 Thereafter 96,679 Total $ 272,186 Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, acquisitions, divestitures and impairment charges. Goodwill The changes in the carrying amount of goodwill, by reporting segment, for the years ended December 31, 2017 and 2016 are shown in the tables below. Gross value before accumulated impairment Accumulated impairment December 31, 2016 Acquisition Impairment Other (1) December 31, 2017 North America Mailing $ 354,000 $ — $ 354,000 $ — $ — $ 14,905 $ 368,905 International Mailing 145,566 — 145,566 — — 12,637 158,203 Small & Medium Business Solutions 499,566 — 499,566 — — 27,542 527,108 Production Mail 101,099 — 101,099 — — 6,390 107,489 Presort Services 196,890 — 196,890 7,891 — — 204,781 Enterprise Business Solutions 297,989 — 297,989 7,891 — 6,390 312,270 Software Solutions 672,683 (171,092 ) 501,591 — — 9,014 510,605 Global Ecommerce 272,189 — 272,189 330,272 — — 602,461 Digital Commerce Solutions 944,872 (171,092 ) 773,780 330,272 — 9,014 1,113,066 Total goodwill $ 1,742,427 $ (171,092 ) $ 1,571,335 $ 338,163 $ — $ 42,946 $ 1,952,444 Gross value before accumulated impairment Accumulated impairment December 31, 2015 Acquisition Impairment Other (1) December 31, 2016 North America Mailing $ 357,215 $ — $ 357,215 $ — $ — $ (3,215 ) $ 354,000 International Mailing 148,351 — 148,351 — — (2,785 ) 145,566 Small & Medium Business Solutions 505,566 — 505,566 — — (6,000 ) 499,566 Production Mail 105,757 — 105,757 — — (4,658 ) 101,099 Presort Services 196,890 — 196,890 — — — 196,890 Enterprise Business Solutions 302,647 — 302,647 — — (4,658 ) 297,989 Software Solutions 674,976 — 674,976 11,908 (171,092 ) (14,201 ) 501,591 Global Ecommerce 262,768 — 262,768 9,421 — — 272,189 Digital Commerce Solutions 937,744 — 937,744 21,329 (171,092 ) (14,201 ) 773,780 Total goodwill $ 1,745,957 $ — $ 1,745,957 $ 21,329 $ (171,092 ) $ (24,859 ) $ 1,571,335 (1) Primarily represents foreign currency translation adjustments. During the fourth quarter of 2016, our Software Solutions reporting unit experienced weaker than expected performance. Based on this and including the soft operating results in 2016, we performed a goodwill impairment test that indicated the fair value of the Software Solutions reporting unit was less than its carrying value. We engaged a third party to perform Steps 1 and 2 of the goodwill impairment test and determined that the implied fair value of goodwill was less than the recorded goodwill and as a result recorded a non-cash, pre-tax goodwill impairment charge of $171 million to write down the carrying value of goodwill to its estimated fair value. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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. Level 3 – Unobservable inputs that are supported by little or no market activity and may be derived from internally developed methodologies based on management's best estimates. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy. 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 December 31, 2017 and 2016 . December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 143,349 $ 542,568 $ — $ 685,917 Equity securities — 40,717 — 40,717 Commingled fixed income securities 1,569 4,516 — 6,085 Government and related securities 116,041 18,587 — 134,628 Corporate debt securities — 75,109 — 75,109 Mortgage-backed / asset-backed securities — 158,202 — 158,202 Derivatives Interest rate swap — 1,776 — 1,776 Foreign exchange contracts — 122 — 122 Total assets $ 260,959 $ 841,597 $ — $ 1,102,556 Liabilities: Derivatives Foreign exchange contracts $ — $ (335 ) $ — $ (335 ) Total liabilities $ — $ (335 ) $ — $ (335 ) December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 114,471 $ 217,175 $ — $ 331,646 Equity securities — 24,571 — 24,571 Commingled fixed income securities 1,536 22,132 — 23,668 Government and related securities 116,822 19,358 — 136,180 Corporate debt securities — 69,891 — 69,891 Mortgage-backed / asset-backed securities — 158,996 — 158,996 Derivatives Interest rate swap — 1,588 — 1,588 Foreign exchange contracts — 637 — 637 Total assets $ 232,829 $ 514,348 $ — $ 747,177 Liabilities: Derivatives Foreign exchange contracts $ — $ (3,717 ) $ — $ (3,717 ) Total liabilities $ — $ (3,717 ) $ — $ (3,717 ) Investment Securities The valuation of investment securities is based on the market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification into the fair value hierarchy: • Money Market Funds / Commercial Paper: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2. • Equity Securities: comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2. • Commingled Fixed Income Securities: comprised of 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. Fair value is based on the 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 mutual funds are classified as Level 2. • Government and related securities: 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. • Corporate Debt Securities: Corporate debt securities are valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2. • Mortgage-Backed Securities / Asset-Backed Securities: These securities are valued based on external pricing indices. When external index pricing is not observable, these securities are valued based on external price/spread data. These securities are classified as Level 2. Available-For-Sale Securities At December 31, 2017 and 2016 , available-for-sale securities consisted of the following: December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 131,872 $ 1,984 $ (1,090 ) $ 132,766 Corporate debt securities 73,612 1,724 (227 ) 75,109 Commingled fixed income securities 1,796 — (40 ) 1,756 Mortgage-backed / asset-backed securities 158,496 1,348 (1,642 ) 158,202 Total $ 365,776 $ 5,056 $ (2,999 ) $ 367,833 December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 136,316 $ 1,571 $ (1,707 ) $ 136,180 Corporate debt securities 69,376 1,180 (665 ) 69,891 Commingled fixed income securities 1,568 — (32 ) 1,536 Mortgage-backed / asset-backed securities 159,312 1,566 (1,882 ) 158,996 Total $ 366,572 $ 4,317 $ (4,286 ) $ 366,603 Investment securities in a loss position for 12 or more continuous months at December 31, 2017 had aggregate unrealized holding losses of $2 million and an estimated fair value of $116 million . Investment securities in a loss position for less than 12 continuous months at December 31, 2017 had aggregate unrealized holding losses of $1 million and an estimated fair value of $91 million . We have not experienced any write-offs in our investment portfolio. Investment securities in a loss position for 12 or more continuous months at December 31, 2016 had aggregate unrealized holding losses of less than $1 million and an estimated fair value of $12 million . Investment securities in a loss position for less than 12 continuous months at December 31, 2016 had aggregate unrealized holding losses of $4 million and an estimated fair value of $171 million . We have not recognized an other-than-temporary impairment on any of the investment securities in an unrealized loss position because we do not intend to sell these securities, it is more likely than not that we will not be required to sell these securities before recovery of the unrealized losses and we expect to receive the contractual principal and interest on these investment securities. At December 31, 2017 , scheduled maturities of available-for-sale securities were as follows: Amortized cost Estimated fair value Within 1 year $ 38,624 $ 38,414 After 1 year through 5 years 111,756 111,704 After 5 years through 10 years 68,599 69,154 After 10 years 146,797 148,561 Total $ 365,776 $ 367,833 The actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations with or without penalty. Derivative Instruments In the normal course of business, we are exposed to the impact of changes in foreign currency exchange rates and interest rates. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivative instruments to limit the effects of exchange rate fluctuations on financial results and manage the related cost of debt. We do not use derivatives for trading or speculative purposes. We record derivative instruments at fair value and the accounting for changes in the fair value 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. Foreign Exchange Contracts We enter into foreign exchange contracts to mitigate the currency risk associated with anticipated inventory purchases 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 accumulated other comprehensive income (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 December 31, 2017 and 2016 , outstanding contracts associated with these anticipated transactions had a notional amount of $10 million and $13 million , respectively. The valuation of foreign exchange derivatives is based on a market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. Interest Rate Swaps We have an interest rate swap with a notional amount of $300 million to mitigate the interest rate risk associated with our $300 million variable-rate term loan. The swap is designated as a cash flow hedge. The effective portion of the gain or loss on the cash flow hedge 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. Under the terms of the swap agreement, we pay fixed-rate interest of 0.8826% and receive variable-rate interest based on one-month LIBOR. The variable interest rate resets monthly. The valuation of our interest rate swap is based on an income approach using inputs that are observable or that can be derived from, or corroborated by, observable market data. The fair value of our derivative instruments at December 31, 2017 and 2016 was as follows: December 31, Designation of Derivatives Balance Sheet Location 2017 2016 Derivatives designated as hedging instruments Foreign exchange contracts Other current assets and prepayments $ 57 $ 487 Accounts payable and accrued liabilities (144 ) (136 ) Interest rate swap Other non-current assets 1,776 1,588 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 65 150 Accounts payable and accrued liabilities (191 ) (3,581 ) Total derivative assets 1,898 2,225 Total derivative liabilities (335 ) (3,717 ) Total net derivative liability $ 1,563 $ (1,492 ) The amounts included in AOCI at December 31, 2017 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 years ended December 31, 2017 and 2016 : Years Ended December 31, Derivative Gain (Loss) Recognized in AOCI (Effective Portion) Location of Gain (Loss) (Effective Portion) Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) Derivative Instrument 2017 2016 2017 2016 Foreign exchange contracts $ (650 ) $ 496 Revenue $ (179 ) $ (68 ) Cost of sales (32 ) 222 Interest rate swap $ 1,776 $ 1,588 Interest Expense — — $ (211 ) $ 154 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 December 31, 2017 mature over the next three months. The following represents the results of our non-designated derivative instruments for the years ended December 31, 2017 and 2016 : Years Ended December 31, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2017 2016 Foreign exchange contracts Selling, general and administrative expense $ (2,203 ) $ (2,382 ) 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 December 31, 2017 , we were not required to post any collateral. 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. The inputs used to determine the fair value of our debt were classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at December 31, 2017 and 2016 was as follows: December 31, 2017 2016 Carrying value $ 3,830,335 $ 3,364,890 Fair value $ 3,718,986 $ 3,412,581 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information The following table shows selected balance sheet information at December 31, 2017 and 2016 : December 31, 2017 2016 Other assets: Long-term investments $ 435,612 $ 425,732 Other 105,184 99,041 Total $ 540,796 $ 524,773 Accounts payable and accrued liabilities: Accounts payable $ 302,101 $ 293,538 Customer deposits 693,004 688,772 Employee related liabilities 260,116 205,901 Other 231,520 190,611 Total $ 1,486,741 $ 1,378,822 |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairments | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Asset Impairments | Restructuring Charges and Asset Impairments The table below shows the activity in our restructuring reserves for the years ended December 31, 2017 and 2016 : Severance and benefits costs Other exit costs Total Balance at December 31, 2015 $ 43,700 $ 3,722 $ 47,422 Expenses, net 44,510 1,655 46,165 Cash payments (59,834 ) (5,096 ) (64,930 ) Balance at December 31, 2016 28,376 281 28,657 Expenses, net 53,322 2,545 55,867 Cash payments (39,547 ) (1,257 ) (40,804 ) Balance at December 31, 2017 $ 42,151 $ 1,569 $ 43,720 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. Asset impairment During 2017, we recorded asset impairment charges of $4 million . In 2016, asset impairment charges consisted primarily of a loss of $5 million from the sale of a facility and an impairment charge of $5 million related to another facility. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, Interest rate 2017 2016 Notes due September 2017 5.75% $ — $ 385,109 Notes due March 2018 5.60% 250,000 250,000 Notes due May 2018 4.75% — 350,000 Notes due March 2019 6.25% 300,000 300,000 Notes due September 2020 3.625% 300,000 — Notes due October 2021 3.625% 600,000 600,000 Notes due May 2022 4.125% 400,000 — Notes due April 2023 4.70% 400,000 — Notes due March 2024 4.625% 500,000 500,000 Notes due January 2037 5.25% 35,841 115,041 Notes due March 2043 6.70% 425,000 425,000 Term loans Variable 650,000 450,000 Other debt 5,476 5,677 Principal amount 3,866,317 3,380,827 Less: unamortized costs, net 35,982 15,937 Total debt 3,830,335 3,364,890 Less: current portion long-term debt 271,057 614,485 Long-term debt $ 3,559,278 $ 2,750,405 In September 2017, we issued $300 million of 3.625% Notes due September 2020 and $400 million of 4.70% Notes due April 2023. Interest is payable semi-annually and is subject to adjustment from time to time based on changes in our credit ratings. Both of these notes may be redeemed, at our option, in whole or in part, at any time at par plus accrued, unpaid interest and a make-whole amount, if any. In September 2017, we also borrowed $350 million under term loan agreements. The new term loans consist of a $200 million term loan that bears interest at the applicable Eurodollar Rate plus 1.5% and matures in September 2020 and a $150 million term loan that bears interest at the applicable Eurodollar Rate plus 1.125% and matures in August 2018, but includes an option to extend the maturity by one year. For the fourth quarter of 2017, the effective interest rate for the $200 million term loan was 2.78% and the effective interest rate for the $150 million term loan was 2.49% . The interest rates on these term loans are subject to adjustment from time to time based on changes in our credit ratings. In May 2017, we issued $400 million of 3.875% Notes. Interest is payable semi-annually and is subject to adjustment based on changes in our credit ratings. As a result of a change in our credit ratings, the fixed rate on these notes subsequently increased 0.25% to 4.125% . The notes mature in May 2022, but may be redeemed, at our option, in whole or in part, at any time at par plus accrued, unpaid interest and a make-whole amount, if any. In addition, the fixed rate on the $600 million notes due October 2021 also increased by 0.25% to 3.625% due to the change in our credit rating. In 2017, we repaid a $150 million term loan, the $385 million of 5.75% Notes due in September 2017 and we early redeemed the $350 million 4.75% Notes, that were due May 2018. As a result of the early redemption of these Notes, we incurred a $4 million loss, which is recorded in Other expense. Additionally, bondholders of the 5.25% Notes due 2037 caused us to redeem $79 million of the outstanding notes. We have a commercial paper program and a committed credit facility of $1 billion to support commercial paper issuances. There were no outstanding commercial paper borrowings as of December 31, 2017 and 2016. The credit facility expires in January 2021. Annual maturities of outstanding debt at December 31, 2017 are as follows: 2018 $ 270,000 2019 500,000 2020 730,476 2021 600,000 2022 400,000 Thereafter 1,365,841 Total $ 3,866,317 |
Retirement Plans and Postretire
Retirement Plans and Postretirement Medical Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Postretirement Medical Benefits | Retirement Plans and Postretirement Medical Benefits We provide certain retirement benefits to our U.S. employees hired prior to January 1, 2005 and to eligible employees outside the U.S. under various defined benefit retirement plans. Benefit accruals under most of our significant defined benefit plans have been frozen. We also provide certain employer subsidized health care and employer provided life insurance benefits in the U.S. and Canada to eligible retirees and their dependents. Employees hired before January 1, 2005 in the U.S. and April 1, 2005 in Canada become eligible for retiree medical benefits after reaching age 55 and with the completion of the required service period. The cost of these benefits is recognized over the period the employee provides credited service to the company. Retirement Plans The benefit obligations and funded status of defined benefit pension plans are as follows: United States Foreign 2017 2016 2017 2016 Accumulated benefit obligation $ 1,726,824 $ 1,677,288 $ 737,580 $ 675,566 Projected benefit obligation Benefit obligation - beginning of year $ 1,678,097 $ 1,689,885 $ 688,172 $ 647,112 Service cost 132 105 2,274 2,148 Interest cost 68,611 73,699 18,836 21,886 Plan participants' contributions — — 6 6 Actuarial loss 92,789 31,764 2,098 127,054 Foreign currency changes — — 64,236 (88,138 ) Settlement — (5,887 ) — (423 ) Benefits paid (111,892 ) (111,469 ) (24,249 ) (21,473 ) Benefit obligation - end of year $ 1,727,737 $ 1,678,097 $ 751,373 $ 688,172 Fair value of plan assets Fair value of plan assets - beginning of year $ 1,464,082 $ 1,460,790 $ 547,290 $ 530,112 Actual return on plan assets 199,749 110,954 46,542 68,067 Company contributions 5,968 9,694 13,081 40,872 Plan participants' contributions — — 6 6 Settlement — (5,887 ) — (423 ) Foreign currency changes — — 50,040 (69,871 ) Benefits paid (111,892 ) (111,469 ) (24,249 ) (21,473 ) Fair value of plan assets - end of year $ 1,557,907 $ 1,464,082 $ 632,710 $ 547,290 Amounts recognized in the Consolidated Balance Sheets Noncurrent asset $ 392 $ 310 $ 19,139 $ 11,744 Current liability (8,362 ) (7,937 ) (1,188 ) (1,045 ) Noncurrent liability (161,860 ) (206,388 ) (136,614 ) (151,581 ) Funded status $ (169,830 ) $ (214,015 ) $ (118,663 ) $ (140,882 ) Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 : United States Foreign 2017 2016 2017 2016 Projected benefit obligation $ 1,727,292 $ 1,677,675 $ 614,371 $ 578,588 Accumulated benefit obligation $ 1,726,378 $ 1,676,866 $ 601,412 $ 565,992 Fair value of plan assets $ 1,557,069 $ 1,463,350 $ 476,825 $ 425,962 Pretax amounts recognized in AOCI consist of: United States Foreign 2017 2016 2017 2016 Net actuarial loss $ 835,265 $ 873,523 $ 321,914 $ 342,169 Prior service credit (391 ) (452 ) (597 ) (667 ) Transition asset — — (24 ) (32 ) Total $ 834,874 $ 873,071 $ 321,293 $ 341,470 The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows: United States Foreign Net actuarial loss $ 32,303 $ 7,304 Prior service credit (60 ) (72 ) Transition asset — (7 ) Total $ 32,243 $ 7,225 The components of net periodic benefit cost (income) for defined benefit pension plans were as follows: United States Foreign 2017 2016 2015 2017 2016 2015 Service cost $ 132 $ 105 $ 134 $ 2,274 $ 2,148 $ 2,229 Interest cost 68,611 73,699 74,331 18,836 21,886 24,261 Expected return on plan assets (97,656 ) (101,918 ) (104,004 ) (32,242 ) (32,615 ) (35,421 ) Amortization of net transition asset — — — (8 ) (8 ) (9 ) Amortization of prior service credit (60 ) (60 ) (60 ) (71 ) (73 ) (66 ) Amortization of net actuarial loss 28,954 27,220 29,272 8,052 5,264 5,926 Special termination benefits — — — — 52 79 Settlement — 2,109 1,243 — 110 — Net periodic benefit (income) cost $ (19 ) $ 1,155 $ 916 $ (3,159 ) $ (3,236 ) $ (3,001 ) Other changes in plan assets and benefit obligations for defined benefit pension plans recognized in other comprehensive income were as follows: United States Foreign 2017 2016 2017 2016 Net actuarial (gain) loss $ (9,304 ) $ 22,728 $ (12,202 ) $ 91,549 Amortization of net actuarial loss (28,954 ) (27,220 ) (8,052 ) (5,264 ) Amortization of prior service credit 60 60 71 73 Net transition asset — — 8 8 Settlement — (2,109 ) — (110 ) Total recognized in other comprehensive income $ (38,198 ) $ (6,541 ) $ (20,175 ) $ 86,256 Weighted-average actuarial assumptions used to determine end of year benefit obligations and net periodic benefit cost for defined benefit pension plans include: 2017 2016 2015 United States Used to determine benefit obligations Discount rate 3.69% 4.20% 4.55% Rate of compensation increase N/A N/A N/A Used to determine net periodic benefit cost Discount rate 4.20% 4.55% 4.15% Expected return on plan assets 6.75% 7.00% 7.0% Rate of compensation increase N/A N/A N/A Foreign Used to determine benefit obligations Discount rate 0.65 % - 3.35% 0.70 % - 3.65% 1.15 % - 3.95% Rate of compensation increase 1.50 % - 2.50% 1.50 % - 2.50% 1.50 % - 3.50% Used to determine net periodic benefit cost Discount rate 0.70 % - 3.65% 1.15 % - 3.95% 1.10 % - 3.80% Expected return on plan assets 3.75 % - 6.25% 3.75 % - 6.51% 4.00 % - 7.00% Rate of compensation increase 1.50 % - 3.30% 1.50 % - 3.50% 1.50 % - 3.50% A discount rate is used to determine the present value of our future benefit obligations. The discount rate for our U.S. pension and postretirement medical benefit plans is determined by matching the expected cash flows associated with our benefit obligations to a pool of corporate long-term, high-quality fixed income debt instruments available as of the measurement date. The discount rate for our largest foreign plan, the U.K. Qualified Pension Plan (the U.K. Plan), is determined by using a model that discounts each year's estimated benefit payments by an applicable spot rate derived from a yield curve created from a large number of high quality corporate bonds. For our other smaller foreign pension plans, the discount rate is selected based on high-quality fixed income indices available in the country in which the plan is domiciled. The expected return on plan assets is based on historical and expected rates of return for current and planned asset classes in the plans' investment portfolio after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. The overall expected rate of return for the portfolio is based on the target asset allocation of our global pension plans, adjusted for historical and expected experience of active portfolio management results, when compared to the benchmark returns. During 2018 , we estimate making contributions of $8 million to our U.S. pension plans and $11 million to our foreign pension plans. Investment Strategy and Asset Allocation - U.S. Pension Plans The investment strategy of our U.S. pension plans is to maximize returns within reasonable and prudent levels of risk, to achieve and maintain full funding of the accumulated benefit obligation and the actuarial liabilities and to earn a nominal rate of return of at least 7.0% . The fund has established a strategic asset allocation policy to achieve these objectives. Investments are diversified across asset classes and within each class to reduce the risk of large losses and are periodically rebalanced. Derivatives, such as swaps, options, forwards and futures contracts may be used for market exposure, to alter risk/return characteristics and to manage foreign currency exposure. We do not have any significant concentrations of credit risk within the plan assets. Investment objectives and investment managers are reviewed periodically. Target and actual allocations for 2018 , 2017 and 2016 for the U.S. pension plans were as follows: Target allocation Percent of Plan Assets at December 31, 2018 2017 2016 Asset category U.S. equities 15 % 15 % 17 % Non-U.S. equities 15 % 15 % 13 % Fixed income 60 % 62 % 60 % Real estate 5 % 6 % 6 % Private equity 5 % 2 % 4 % Total 100 % 100 % 100 % Investment Strategy and Asset Allocation - Foreign Pension Plans Our foreign pension plan assets are managed by outside investment managers and monitored regularly by local trustees and our corporate personnel. Investment strategies vary by country and plan, with each strategy tailored to achieve the expected rate of return within an acceptable or appropriate level of risk, depending upon the liability profile of plan participants, local funding requirements, investment markets and restrictions. The U.K. Plan represents 75% of the total foreign pension assets. The U.K. pension plan's investment strategy is to maximize returns within reasonable and prudent levels of risk, to achieve and maintain full funding of the accumulated benefit obligation and the actuarial liabilities and to earn a nominal rate of return of at least 6.25% . The fund has established a strategic asset allocation policy to achieve these objectives. Investments are diversified across asset classes and within each class to minimize the risk of large losses and are periodically rebalanced. Derivatives, such as swaps, options, forwards and futures contracts may be used for market exposure, to alter risk/return characteristics and to manage currency exposure. We do not have any significant concentrations of credit risk within the plan assets. Investment objectives and investment managers are reviewed periodically. Target and actual asset allocations for the U.K. Plan for 2018 , 2017 and 2016 were as follows: Target Allocation Percent of Plan Assets at December 31, 2018 2017 2016 Asset category U.K. equities 10 % 10 % 22 % Non-U.K. equities 30 % 29 % 19 % Fixed income 40 % 41 % 41 % Real estate 10 % 9 % 8 % Diversified growth 10 % 9 % 9 % Cash — % 2 % 1 % Total 100 % 100 % 100 % The target asset allocation used to manage the investment portfolios is based on the broad asset categories shown above. The plan asset categories presented in the fair value hierarchy are subsets of the broad asset categories. The fair value of the U.K. plan assets was $477 million and $410 million at December 31, 2017 and 2016 , respectively, and the expected long-term weighted average rate of return on these plan assets was 6.25% in 2017 and 6.5% in 2016 . Fair Value Measurements of Plan Assets The following tables show the U.S. and foreign pension plans' assets at December 31, 2017 and 2016 : United States Pension Plans December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds $ 8,810 $ 9,350 $ — $ 18,160 Equity securities 152,815 150,043 — 302,858 Commingled fixed income securities — 377,078 — 377,078 Government and related securities 295,404 20,473 — 315,877 Corporate debt securities — 418,908 — 418,908 Mortgage-backed securities /asset-backed securities — 19,223 — 19,223 Private equity — — 38,362 38,362 Real estate — — 91,352 91,352 Securities lending collateral (1) — 152,179 — 152,179 Total plan assets at fair value $ 457,029 $ 1,147,254 $ 129,714 $ 1,733,997 Securities lending payable (1) (152,179 ) Cash 5,186 Other (29,097 ) Fair value of plan assets $ 1,557,907 December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ 2,604 $ 6,609 $ — $ 9,213 Equity securities 184,254 140,691 — 324,945 Commingled fixed income securities — 358,776 — 358,776 Government and related securities 214,068 21,126 — 235,194 Corporate debt securities — 367,369 — 367,369 Mortgage-backed securities /asset-backed securities — 14,072 1,236 15,308 Private equity — — 49,637 49,637 Real estate — — 87,852 87,852 Securities lending collateral (1) — 174,651 — 174,651 Total plan assets at fair value $ 400,926 $ 1,083,294 $ 138,725 $ 1,622,945 Securities lending payable (1) (174,651 ) Cash 18,164 Other (2,376 ) Fair value of plan assets $ 1,464,082 (1) Securities lending collateral is offset by a corresponding securities lending payable amount. Foreign Plans December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds $ — $ 13,375 $ — $ 13,375 Equity securities — 226,032 — 226,032 Commingled fixed income securities — 213,844 — 213,844 Government and related securities — 66,115 — 66,115 Corporate debt securities — 24,889 — 24,889 Real estate — — 41,601 41,601 Diversified growth funds — — 44,024 44,024 Total plan assets at fair value $ — $ 544,255 $ 85,625 $ 629,880 Cash 2,203 Other 627 Fair value of plan assets $ 632,710 December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ — $ 6,811 $ — $ 6,811 Equity securities 32,295 181,943 — 214,238 Commingled fixed income securities — 69,022 — 69,022 Government and related securities — 29,363 — 29,363 Corporate debt securities — 150,767 — 150,767 Real estate — — 34,483 34,483 Diversified growth funds — — 36,779 36,779 Total plan assets at fair value $ 32,295 $ 437,906 $ 71,262 $ 541,463 Cash 4,262 Other 1,565 Fair value of plan assets $ 547,290 The following information relates to our classification of investments into the fair value hierarchy: • Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits. • Equity Securities: Equity securities include U.S. and foreign stocks, American Depository Receipts, preferred stock and commingled funds. There are no shares of our common stock included in the plan assets of our pension plans. • Commingled Fixed Income Securities: Mutual funds that invest in fixed income securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value 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. • Government and Related Securities: Government and related securities include treasury notes and bonds, foreign government issues, U.S. government sponsored agency debt and commingled funds. Municipal debt securities include general obligation securities and revenue-backed securities. Fair value is based on benchmarking model derived prices to quotes market prices and trade data for identical comparable securities. • Corporate Debt Securities : Investments are comprised of both investment grade debt and high-yield debt. The fair value of corporate debt securities is determined using recently executed transactions, market price quotations where observable, or bond spreads. • Mortgage-Backed Securities (MBS)/Asset-Backed Securities (ABS) : MBS are investments are comprised of agency-backed MBS, non-agency MBS, collateralized mortgage obligations, commercial MBS, and commingled funds. These securities are valued based on external pricing indices- external price/spread data or broker quotes. ABS are investments are primarily comprised of credit card receivables, auto loan receivables, student loan receivables, and Small Business Administration loans. • Private Equity : Investments are comprised of units in fund-of-funds investment vehicles. Fund-of-funds consist of various private equity investments and are used in an effort to gain greater diversification. The investments are valued in accordance with the most appropriate valuation techniques. • Real Estate: Investments include units in open-ended commingled real estate funds. Properties that comprise these funds are valued in accordance with the most appropriate valuation techniques. • Diversified Growth Funds: Investments are comprised of units in commingled diversified growth funds. These investments are valued based on the net asset value (NAV) per unit as reported by the fund manager. • Securities Lending Fund: Investment represents a commingled fund through our custodian's securities lending program. The U.S. pension plan lends securities that are held within the plan to other banks and/or brokers, and receives collateral, typically cash. This collateral is invested in a short-term fixed income securities commingled fund. This amount invested in the fund is offset by a corresponding liability reflected in the U.S. pension plan's net assets available for benefits. Level 3 Gains and Losses The following table summarizes the changes in the fair value of Level 3 assets for the years ended December 31, 2017 and 2016 : United States Pension Plans MBS & ABS Private equity Real estate Total Balance at December 31, 2015 $ 1,592 $ 63,577 $ 82,569 $ 147,738 Realized gains 8 10,200 1,280 11,488 Unrealized gains (losses) 38 (7,540 ) 4,815 (2,687 ) Net purchases, sales and settlements (402 ) (16,600 ) (812 ) (17,814 ) Balance at December 31, 2016 1,236 49,637 87,852 138,725 Realized gains 25 9,226 980 10,231 Unrealized gains (losses) 49 (2,334 ) 2,397 112 Net purchases, sales and settlements (1,310 ) (18,167 ) 123 (19,354 ) Balance at December 31, 2017 $ — $ 38,362 $ 91,352 $ 129,714 Foreign Pension Plans Real estate Diversified growth funds Total Balance at December 31, 2015 $ 39,177 $ 20,513 $ 59,690 Unrealized gains 459 2,561 3,020 Net purchases, sales and settlements 1,436 19,028 20,464 Foreign currency loss (6,589 ) (5,323 ) (11,912 ) Balance at December 31, 2016 34,483 36,779 71,262 Unrealized gains 2,159 3,551 5,710 Net purchases, sales and settlements 1,481 — 1,481 Foreign currency gain 3,478 3,694 7,172 Balance at December 31, 2017 $ 41,601 $ 44,024 $ 85,625 Nonpension Postretirement Benefits The benefit obligation and funded status for nonpension postretirement benefit plans are as follows: 2017 2016 Benefit obligation Benefit obligation - beginning of year $ 189,772 $ 211,878 Service cost 1,727 2,046 Interest cost 7,100 7,969 Plan participants' contributions 3,820 4,241 Actuarial loss (gain) 5,134 (13,934 ) Foreign currency changes 1,066 409 Benefits paid (19,778 ) (22,837 ) Benefit obligation - end of year (1) $ 188,841 $ 189,772 Fair value of plan assets Fair value of plan assets - beginning of year $ — $ — Company contribution 15,958 18,596 Plan participants' contributions 3,820 4,241 Benefits paid (19,778 ) (22,837 ) Fair value of plan assets - end of year $ — $ — Amounts recognized in the Consolidated Balance Sheets Current liability $ (17,712 ) $ (18,127 ) Non-current liability (171,129 ) (171,645 ) Funded status $ (188,841 ) $ (189,772 ) (1) The benefit obligation for the U.S. nonpension postretirement plans was $172 million and $174 million at December 31, 2017 and 2016 , respectively. Pretax amounts recognized in AOCI consist of: 2017 2016 Net actuarial loss $ 43,160 $ 41,625 Prior service cost 1,466 1,763 Total $ 44,626 $ 43,388 The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows: 2017 2016 2015 Service cost $ 1,727 $ 2,046 $ 2,455 Interest cost 7,100 7,969 8,799 Amortization of prior service cost 297 297 297 Amortization of net actuarial loss 3,600 3,615 7,528 Net periodic benefit cost $ 12,724 $ 13,927 $ 19,079 Other changes in plan assets and benefit obligation for nonpension postretirement benefit plans recognized in other comprehensive income were as follows: 2017 2016 Net actuarial loss (gain) $ 5,134 $ (13,934 ) Amortization of net actuarial loss (3,600 ) (3,615 ) Amortization of prior service cost (297 ) (297 ) Total recognized in other comprehensive income $ 1,237 $ (17,846 ) The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows: Net actuarial loss $ 3,736 Prior service cost 351 Total $ 4,087 The weighted-average discount rates used to determine end of year benefit obligation and net periodic pension cost include: 2017 2016 2015 Discount rate used to determine benefit obligation U.S. 3.55 % 3.90 % 4.20 % Canada 3.35 % 3.65 % 3.95 % Discount rate used to determine net period benefit cost U.S. 3.90 % 4.20 % 3.90 % Canada 3.65 % 3.95 % 3.80 % The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the U.S. plan was 7.0% for 2017 and 6.0% for 2016 . The assumed health care trend rate is 7.0% for 2018 and will gradually decline to 5.0% by the year 2025 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in the assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on total of service and interest cost components $ 323 $ (269 ) Effect on postretirement benefit obligation $ 7,672 $ (6,479 ) Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, are expected to be paid. Pension Benefits Nonpension Benefits Years ending December 31, 2018 $ 132,626 $ 17,693 2019 129,051 17,163 2020 130,201 16,554 2021 128,257 15,952 2022 128,221 15,347 Thereafter 628,715 63,303 $ 1,277,071 $ 146,012 Savings Plans We offer voluntary defined contribution plans to our U.S. employees designed to help them accumulate additional savings for retirement. We provide a core contribution to all employees, regardless if they participate in the plan, and match a portion of each participating employees' contribution, based on eligible pay. Total contributions to our defined contribution plans were $31 million in 2017 and $32 million in 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Cuts and Jobs Act of 2017 The Tax Cuts and Jobs Act of 2017 (the Act) was enacted on December 22, 2017 and most provisions are effective January 1, 2018. The Act lowers the U.S. corporate income tax rate from 35% to 21%, implements a territorial tax system in the U.S. and imposes a one-time tax on the unremitted earnings of our foreign subsidiaries payable over eight years beginning in 2018. The Securities and Exchange Commission recognized the complexity of reflecting the impacts of the Act and, on December 22, 2017, issued guidance in Staff Accounting Bulletin No. 118 (SAB 118) Income Tax Accounting Implications of the Tax Cuts and Jobs Act. SAB 118 clarified the accounting for income taxes related to the Act if information is not yet available or complete, and provides for up to a one year measurement period in which to complete the required income tax analyses and accounting. In accordance with SAB 118, our measurement of the income tax effects of the Act is not complete, but we have made a provisional estimate of the income tax effects of the Act. As a result of the Act and in accordance with SAB 118, we recorded a net provisional one-time non-cash benefit of $39 million , which is comprised of a provisional $130 million benefit from the remeasurement of net U.S. deferred tax liabilities arising from a lower U.S. tax rate, offset by a provisional $91 million charge related primarily to the U.S. tax on unremitted earnings of our foreign subsidiaries. Our estimates of the impact of the Act are based on current calculations and interpretations, as well as assumptions and expectations relating to the Act, which are subject to adjustment based on further guidance and factual changes during the measurement period. As a result of the treatment of foreign earnings under the Act, we have reconsidered our permanent investment position and provisionally concluded we will no longer assert indefinite investment with respect to our foreign unremitted earnings as of December 31, 2017. Income from continuing operations before taxes consisted of the following: Years Ended December 31, 2017 2016 2015 U.S. $ 195,291 $ 169,493 $ 516,233 International 87,698 76,877 94,592 Total $ 282,989 $ 246,370 $ 610,825 The provision for income taxes from continuing operations consisted of the following: Years Ended December 31, 2017 2016 2015 U.S. Federal: Current $ 46,836 $ 95,598 $ 115,557 Deferred (48,449 ) (1,559 ) 19,941 (1,613 ) 94,039 135,498 U.S. State and Local: Current 461 9,409 11,243 Deferred 15,460 4,757 16,094 15,921 14,166 27,337 International: Current (1,766 ) 22,872 22,794 Deferred 9,107 742 4,149 7,341 23,614 26,943 Total current 45,531 127,879 149,594 Total deferred (23,882 ) 3,940 40,184 Total provision for income taxes $ 21,649 $ 131,819 $ 189,778 Effective tax rate 7.7 % 53.5 % 31.1 % The effective tax rate for 2017 includes provisional tax benefits of $ 39 million from the Act, and tax benefits of $ 30 million from the resolution of certain tax examinations. The effective tax rate for 2016 includes tax benefits of $ 15 million from the resolution of tax examinations, a $ 58 million charge associated with the goodwill impairment and a $ 6 million charge for a valuation allowance on tax attribute carryovers. The effective tax rate for 2015 includes tax benefits of $ 20 million from the disposition of Imagitas and $ 3 million from the retroactive effect of 2015 tax legislation. A reconciliation of income taxes computed at the federal statutory rate and our provision for income taxes consist of the following: Years Ended December 31, 2017 2016 2015 Federal statutory provision $ 99,045 $ 86,229 $ 213,789 State and local income taxes 7,327 9,208 17,769 Other impact of foreign operations (31,573 ) (13,806 ) (6,492 ) Tax incentives/credits/exempt income (16,292 ) (10,735 ) (12,130 ) Outside basis differences — — (27,110 ) Goodwill impairments — 58,022 — Remeasurement of U.S. deferred tax liability (129,612 ) — — U.S. tax on unremitted earnings 90,916 — — Other, net 1,838 2,901 3,952 Provision for income taxes $ 21,649 $ 131,819 $ 189,778 Other impacts of foreign operations include income of foreign affiliates taxed at rates other than the 35% U.S. statutory rate, the accrual or release of tax uncertainty amounts related to foreign operations, the tax impacts of foreign earnings repatriation and the U.S. foreign tax credit impacts of foreign income taxed in the U.S. In 2017, as a result of the Act, the remeasurement of U.S. deferred tax liabilities and the U.S. tax on unremitted earnings were accrued as provisional estimates. The 2016 goodwill impairment significantly increased the 2016 tax rate as nearly all of the goodwill that was impaired had no tax basis. Deferred tax liabilities and assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Deferred tax liabilities: Depreciation $ (77,415 ) $ (93,475 ) Deferred profit (for tax purposes) on sale to finance subsidiary (60,340 ) (98,247 ) Lease revenue and related depreciation (133,908 ) (137,665 ) Intangible assets (106,488 ) (113,128 ) Other (22,468 ) (27,340 ) Gross deferred tax liabilities (400,619 ) (469,855 ) Deferred tax assets: Nonpension postretirement benefits 48,387 71,101 Pension 66,270 105,564 Inventory and equipment capitalization 11,380 13,318 Restructuring charges 12,476 6,980 Long-term incentives 11,544 17,923 Net operating loss 108,006 97,194 Tax credit carry forwards 82,285 53,181 Tax uncertainties gross-up 9,920 18,273 Other 51,436 79,799 Gross deferred tax assets 401,704 463,333 Less: Valuation allowance (178,156 ) (127,095 ) Net deferred tax assets 223,548 336,238 Total deferred taxes, net $ (177,071 ) $ (133,617 ) A valuation allowance is recognized to reduce the total deferred tax assets to an amount that will more-likely-than-not be realized. The valuation allowance relates primarily to certain foreign, state and local net operating loss and tax credit carryforwards that are more-likely-than-not to expire unutilized. We have net operating loss carryforwards of $287 million as of December 31, 2017 , of which, $225 million can be carried forward indefinitely and the remainder expire over the next 15 years. In addition, we have tax credit carryforwards of $82 million , of which $49 million can be carried forward indefinitely and the remainder expire over the next five to 15 years. Uncertain Tax Positions A reconciliation of the amount of unrecognized tax benefits is as follows: 2017 2016 2015 Balance at beginning of year $ 124,728 $ 139,249 $ 132,495 Increases from prior period positions 528 — 7,637 Decreases from prior period positions (31,470 ) (21,207 ) (16,753 ) Increases from current period positions 5,951 10,867 23,533 Decreases relating to settlements with tax authorities (6,953 ) (1,791 ) (3,831 ) Reductions from lapse of applicable statute of limitations (3,017 ) (2,390 ) (3,832 ) Balance at end of year $ 89,767 $ 124,728 $ 139,249 The amount of the unrecognized tax benefits at December 31, 2017 , 2016 and 2015 that would affect the effective tax rate if recognized was $74 million , $104 million and $117 million , respectively. On a regular basis, we conclude tax return examinations, statutes of limitations expire, and court decisions interpret tax law. We regularly assess tax uncertainties in light of these developments. As a result, it is reasonably possible that the amount of our unrecognized tax benefits will decrease in the next 12 months, and we expect this change could be up to 25% of our unrecognized tax benefits. We recognize interest and penalties related to uncertain tax positions in our provision for income taxes. We recognized interest and penalties of $(4) million , less than $1 million and $(4) million related to uncertain tax positions in our provision for income taxes for the years ended December 31, 2017, 2016 and 2015 respectively. We had $4 million and $9 million accrued for the payment of interest and penalties at December 31, 2017 and 2016 , respectively. Other Tax Matters As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. The IRS examinations of our consolidated U.S. income tax returns for tax years prior to 2013 are closed to audit. Additionally, in the U.S. we are subject to examination on various post-2006 State and Local taxes. In Canada, the examination of our tax filings prior to 2012 are closed to audit, except for the pending application of legal principles to specific issues arising in earlier years. Other significant jurisdictions include France, closed through the end of 2012, Germany, closed through the end of 2012 and the U.K., closed through the end of 2015, except for an item under appeal. We have other less significant tax filings currently subject to examination. We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we have operations and account for the related financial statement implications. We believe we have established tax reserves that are appropriate given the possibility of tax adjustments. However, determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax law and the possibility of tax adjustments. Future changes in tax reserve requirements could have a material impact, positive or negative, on our results of operations, financial position and cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 clients; or disputes with employees. Some of these actions may be brought as a purported class action on behalf of a purported class of employees, clients or others. In management's opinion, it is not reasonably possible that the potential liability, if any, that may result from these actions, either individually or collectively, will 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases We lease office space and equipment under operating lease agreements with varying terms. Certain leases require us to pay property taxes, insurance and routine maintenance and include renewal options and escalation clauses. Rent expense was $46 million , $45 million and $47 million in 2017 , 2016 and 2015 , respectively. Future minimum lease payments under non-cancelable operating leases at December 31, 2017 were as follows: Years ending December 31, 2018 $ 47,820 2019 39,107 2020 30,180 2021 22,266 2022 15,256 Thereafter 63,685 Total minimum lease payments $ 218,314 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders' Equity (Deficit) Preferred and Preference Stock We have two classes of preferred stock issued and outstanding: the 4% Preferred Stock (the Preferred Stock) and the $2.12 Preference Stock (the Preference Stock) . The Preferred Stock is entitled to cumulative dividends of $2 per year and can be converted into 24.24 shares of common stock, subject to adjustment, in certain events. The Preferred Stock is redeemable at our option at a price of $50 per share, plus dividends accrued through the redemption date. We are authorized to issue 600,000 shares of Preferred Stock. There were 12 shares of Preferred Stock outstanding at both December 31, 2017 and 2016 . There are no unpaid dividends in arrears. The Preference Stock is entitled to cumulative dividends of $2.12 per year and can be converted into 16.53 shares of common stock, subject to adjustment, in certain events. The Preference Stock is redeemable at our option at a price of $28 per share. We are authorized to issue 5,000,000 shares of Preference Stock. At December 31, 2017 and 2016 , there were 16,301 shares and 17,832 shares outstanding, respectively. There are no unpaid dividends in arrears. Common and Treasury Stock The following table summarizes the changes in shares of Common Stock outstanding and Treasury Stock: Common Stock Outstanding Treasury Stock Balance at December 31, 2014 201,027,964 122,309,948 Repurchases of common stock (6,476,796 ) 6,476,796 Issuance of common stock 943,686 (943,686 ) Conversions to common stock 26,354 (26,354 ) Balance at December 31, 2015 195,521,208 127,816,704 Repurchases of common stock (10,633,235 ) 10,633,235 Issuance of common stock 767,060 (767,060 ) Conversions to common stock 13,685 (13,685 ) Balance at December 31, 2016 185,668,718 137,669,194 Issuance of common stock 881,480 (881,480 ) Conversions to common stock 53,540 (53,540 ) Balance at December 31, 2017 186,603,738 136,734,174 At December 31, 2017 , 33,691,570 shares were reserved for issuance under our stock plans, dividend reinvestment program and the conversion of Preferred Stock and Preference Stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 were as follows: Amounts Reclassified from AOCI (a) Years Ended December 31, 2017 2016 2015 Gains (losses) on cash flow hedges Revenue $ (179 ) $ 68 $ 1,082 Cost of sales (32 ) (222 ) 551 Interest expense (2,028 ) (2,028 ) (2,028 ) Total before tax (2,239 ) (2,182 ) (395 ) Tax benefit (872 ) (850 ) (164 ) Net of tax $ (1,367 ) $ (1,332 ) $ (231 ) Gains (losses) on available for sale securities Interest income $ (520 ) $ (1,126 ) $ 1,134 Tax (benefit) provision (201 ) (433 ) 419 Net of tax $ (319 ) $ (693 ) $ 715 Pension and Postretirement Benefit Plans (b) Transition asset $ 8 $ 8 $ 9 Prior service costs (166 ) (164 ) (171 ) Actuarial losses (40,606 ) (38,370 ) (43,969 ) Total before tax (40,764 ) (38,526 ) (44,131 ) Tax benefit (13,936 ) (14,430 ) (15,966 ) Net of tax $ (26,828 ) $ (24,096 ) $ (28,165 ) (a) Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss). (b) Reclassified from accumulated other comprehensive loss into selling, general and administrative expenses. These amounts are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 12 for additional details). Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 were as follows: Cash flow hedges Available-for-sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance January 1, 2015 $ (4,689 ) $ 2,966 $ (786,079 ) $ (58,354 ) $ (846,156 ) Other comprehensive income (loss) before reclassifications (a) 546 (1,715 ) 19,146 (91,436 ) (73,459 ) Amounts reclassified from accumulated other comprehensive income (loss) (a), (b) 231 (715 ) 28,165 3,299 30,980 Net other comprehensive income (loss) 777 (2,430 ) 47,311 (88,137 ) (42,479 ) Balance at December 31, 2015 (3,912 ) 536 (738,768 ) (146,491 ) (888,635 ) Other comprehensive income (loss) before reclassifications (a) 1,095 (1,109 ) (73,141 ) (4,464 ) (77,619 ) Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c) 1,332 693 24,096 — 26,121 Net other comprehensive income (loss) 2,427 (416 ) (49,045 ) (4,464 ) (51,498 ) Balance at December 31, 2016 (1,485 ) 120 (787,813 ) (150,955 ) (940,133 ) Other comprehensive income (loss) before reclassifications (a) (288 ) 1,158 12,185 106,391 119,446 Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c) 1,367 319 26,828 — 28,514 Net other comprehensive income (loss) 1,079 1,477 39,013 106,391 147,960 Balance at December 31, 2017 $ (406 ) $ 1,597 $ (748,800 ) $ (44,564 ) $ (792,173 ) (a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (b) See table above for additional details of these reclassifications. (c) Foreign currency item amount represents the recognition of deferred translation upon the sale of certain businesses. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans We have a long-term incentive program whereby eligible employees may be granted restricted stock units, non-qualified stock options and performance stock units. The Executive Compensation Committee of the Board of Directors administers these plans. We settle stock awards with treasury shares. At December 31, 2017 , there were 15,725,806 shares available for future grants under our long-term incentive program. Restricted Stock Units Restricted stock units (RSUs) entitle the holder to shares of common stock as the units vest, typically over a three year service period. The following table summarizes information about RSUs during 2017 and 2016 : 2017 2016 Shares Weighted average grant date fair value Shares Weighted average grant date fair value Outstanding - beginning of the year 1,609,459 $ 17.50 1,727,214 $ 18.30 Granted 1,995,473 13.24 826,546 17.20 Vested (784,295 ) 19.42 (822,290 ) 19.91 Forfeited (169,584 ) 14.76 (122,011 ) 19.97 Outstanding - end of the year 2,651,053 $ 14.16 1,609,459 $ 17.50 The fair value of RSUs is determined based on the stock price on the grant date less the present value of expected dividends. At December 31, 2017 , there was $15 million of unrecognized compensation cost related to RSUs that is expected to be recognized over a weighted-average period of 1.8 years . The intrinsic value of RSUs outstanding at December 31, 2017 was $28 million . The intrinsic value of RSUs vested during 2017 , 2016 and 2015 was $26 million , $14 million and $18 million , respectively. The fair value of RSUs vested during 2017 , 2016 and 2015 was $14 million , $21 million and $14 million , respectively. During 2015 , we granted 809,436 RSUs at a weighted average fair value of $21.15 . Non-employee directors receive restricted stock units which are convertible into shares of common stock one year from date of grant. In 2017 and 2016 , we granted 63,090 and 54,855 restricted stock units, respectively, to non-employee directors. Performance Stock Units Performance stock units (PSUs) are stock awards where the number of shares ultimately received by the employee is conditional upon the attainment of certain performance targets as well as total shareholder return relative to peer companies. PSUs vest at the end of a three -year service period and the actual number of shares awarded may range from 0% to 200% of the target award. However, the final determination of the number of shares to be issued is made by our Board of Directors, who may reduce, but not increase, the ultimate number of shares to be awarded (negative discretion). PSUs are accounted for as variable awards until the end of the service period when the grant date is established. The following table summarizes share information about PSUs during 2017 : Years Ended December 31, 2017 2016 Outstanding - beginning of the year 379,898 1,107,515 Granted 1,073,934 889,599 Performance adjustments (226,154 ) (1,400,425 ) Forfeited (82,653 ) (216,791 ) Outstanding - end of the year 1,145,025 379,898 Total share-based compensation expense for PSUs is recognized ratably over the service based on the product of the number shares expected to be awarded and the fair value of an award, determined using a Monte Carlo simulation model. The fair value of an award and the number of shares expected to be awarded is updated each balance sheet date. Due to the variability of these awards, significant fluctuations in share-based compensation expense recognized from one period to the next are possible. Stock Options Stock options are granted at an exercise price equal to or greater than the stock price of our common stock on the grant date. Options vest ratably over three years and expire ten years from the date of grant. At December 31, 2017 , there was $4 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.7 years . The intrinsic value of options outstanding and options exercisable at December 31, 2017 was not significant. No stock options were exercised in 2017 or 2016. The following table summarizes information about stock option activity during 2017 and 2016 : 2017 2016 Shares Per share weighted average exercise prices Shares Per share weighted average exercise prices Options outstanding - beginning of the year 9,122,762 $ 27.13 8,771,600 $ 31.26 Granted 2,553,510 13.16 1,758,760 16.87 Canceled (63,517 ) 20.34 (157,176 ) 19.48 Expired (1,117,716 ) 46.88 (1,250,422 ) 42.62 Options outstanding - end of the year 10,495,039 $ 21.67 9,122,762 $ 27.13 Options exercisable - end of the year 6,690,250 $ 25.57 7,140,772 $ 27.47 The following table provides additional information about stock options outstanding and exercisable at December 31, 2017 : Options Outstanding Options Exercisable Range of per share exercise prices Shares Per share weighted-average exercise price Weighted-average remaining contractual life Shares Per share weighted-average exercise price Weighted-average remaining contractual life $13.11 - $14.26 2,653,510 $ 13.17 8.9 years 100,000 $ 13.39 4.9 years $14.27 - $21.89 2,347,595 17.07 7.2 years 1,296,316 17.22 6.4 years $21.90 - $24.77 2,683,597 23.29 2.3 years 2,683,597 23.29 2.3 years $24.78 - $36.96 2,810,337 31.98 1.8 years 2,610,337 32.53 1.3 years 10,495,039 $ 21.67 4.9 years 6,690,250 $ 25.57 2.8 years The fair value of stock options is determined using a Black-Scholes valuation model. Key assumptions used to estimate the fair value of stock options include the volatility of our stock price, a risk-free interest rate, the expected dividend yield and expected life of the award. The follow table lists the weighted average of assumptions used to calculate the fair value of stock options granted during 2016 and 2015: Years Ended December 31, 2017 2016 Expected dividend yield 5.7 % 4.5 % Expected stock price volatility 29.7 % 29.0 % Risk-free interest rate 2.3 % 1.6 % Expected life 7 years 7 years Weighted-average fair value per option granted $2.00 $2.85 Fair value of options granted $5,107 $5,013 Employee Stock Purchase Plan We maintain a non-compensatory Employee Stock Purchase Plan that enables substantially all U.S. and Canadian employees to purchase shares of our common stock at an offering price of 95% of the average market price on the offering date. At no time will the exercise price be less than the lowest price permitted under Section 423 of the Internal Revenue Code. Employees purchased 150,629 shares and 147,680 shares in 2017 and 2016 , respectively. We have reserved 2,770,428 common shares for future purchase under the ESPP. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter Total 2017 Revenue $ 836,640 $ 821,371 $ 842,820 $ 1,049,117 $ 3,549,948 Cost of revenues 374,174 382,565 401,306 564,624 1,722,669 Operating expenses 365,917 384,953 366,549 426,871 1,544,290 Income from continuing operations before income taxes 96,549 53,853 74,965 57,622 282,989 Provision for income taxes 31,416 4,952 17,607 (32,326 ) 21,649 Net income - Pitney Bowes Inc. $ 65,133 $ 48,901 $ 57,358 $ 89,948 $ 261,340 Basic earnings per share (1) $ 0.35 $ 0.26 $ 0.31 $ 0.48 $ 1.40 Diluted earnings per share (1) $ 0.35 $ 0.26 $ 0.31 $ 0.48 $ 1.39 (1) The sum of earnings per share amounts may not equal the totals due to rounding. First Quarter Second Quarter Third Quarter Fourth Quarter Total 2016 Revenue $ 844,589 $ 835,886 $ 839,031 $ 887,069 $ 3,406,575 Cost of revenues 365,241 372,144 376,987 400,306 1,514,678 Operating expenses (1) 379,684 370,504 368,451 526,888 1,645,527 Income from continuing operations before income taxes 99,664 93,238 93,593 (40,125 ) 246,370 Provision for income taxes 37,024 33,394 23,197 38,204 131,819 Income from continuing operations 62,640 59,844 70,396 (78,329 ) 114,551 (Loss) from discontinued operations — (1,660 ) (291 ) (750 ) (2,701 ) Net income before attribution of noncontrolling interests 62,640 58,184 70,105 (79,079 ) 111,850 Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests 4,594 4,594 4,593 5,264 19,045 Net income (loss) - Pitney Bowes Inc. $ 58,046 $ 53,590 $ 65,512 $ (84,343 ) $ 92,805 Amounts attributable to common stockholders: Income from continuing operations $ 58,046 $ 55,250 $ 65,803 $ (83,593 ) $ 95,506 Loss from discontinued operations — (1,660 ) (291 ) (750 ) (2,701 ) Net income - Pitney Bowes Inc. $ 58,046 $ 53,590 $ 65,512 $ (84,343 ) $ 92,805 Basic earnings per share attributable to common stockholders (2) : Continuing operations $ 0.30 $ 0.29 $ 0.35 $ (0.45 ) $ 0.51 Discontinued operations — (0.01 ) — — (0.01 ) Net income - Pitney Bowes Inc. $ 0.30 $ 0.28 $ 0.35 $ (0.45 ) $ 0.49 Diluted earnings per share attributable to common stockholders (2): Continuing operations $ 0.30 $ 0.29 $ 0.35 $ (0.45 ) $ 0.51 Discontinued operations — (0.01 ) — — (0.01 ) Net income - Pitney Bowes Inc. $ 0.30 $ 0.28 $ 0.35 $ (0.45 ) $ 0.49 (1) Fourth quarter operating expense includes an adjustment to reverse previously recognized variable compensation expense of $36 million and a non-cash goodwill impairment charge of $171 million . (2) The sum of earnings per share amounts may not equal the totals due to rounding. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Description Balance at beginning of year Additions charged to expense Deductions Balance at end of year Allowance for doubtful accounts 2017 $ 14,372 $ 9,770 $ (8,157 ) $ 15,985 2016 $ 9,997 $ 6,797 $ (2,422 ) $ 14,372 2015 $ 12,455 $ 430 $ (2,888 ) $ 9,997 Valuation allowance for deferred tax asset 2017 $ 127,095 $ 53,782 $ (2,721 ) $ 178,156 2016 $ 132,624 $ 6,523 $ (12,052 ) $ 127,095 2015 $ 116,935 $ 21,232 $ (5,543 ) $ 132,624 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of Pitney Bowes Inc. (we, us, our, or the company) and its wholly owned subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and accompanying disclosures, including the disclosure of contingent assets and liabilities. These estimates and assumptions are based on management's best knowledge of current events, historical experience and other information available when the financial statements are prepared. These estimates include, but are not limited to, revenue recognition for multiple element arrangements, the allocation of purchase price to tangible and intangible assets acquired and liabilities assumed in business combinations, goodwill and intangible asset impairment review, allowance for doubtful accounts and credit losses, residual values of leased assets, useful lives of long-lived and intangible assets, restructuring costs, pension and other postretirement costs, income tax reserves, deferred tax asset valuation allowance, stock-based compensation expense and loss contingencies. Actual results could differ from those estimates and assumptions. |
Cash Equivalents and Investments | Cash Equivalents and Investments Cash equivalents include highly-liquid interest-earning investments with a maturity of three months or less at the date of purchase. Short-term investments include investments with an original maturity of greater than three months but less than one year from the reporting date. |
Investment Securities | Our investment securities are primarily classified as available-for-sale and recorded at fair value, with unrealized gains and losses, excluding other-than-temporary impairments, reported in other comprehensive income, net of tax. Purchase premiums and discounts are amortized using the effective interest method over the term of the security. Gains and losses on the sale of available-for-sale securities are recorded on the trade date using the specific identification method. Investment securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Investment securities are recorded in the Consolidated Balance Sheets as cash and cash equivalents, short-term investments and other assets depending on the investment's maturity. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due within 30 days after the invoice date. Accounts 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 accounts receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We estimate the probable losses on accounts receivable and provide an allowance for doubtful accounts. Our estimate is based on historical loss experience, the age of the receivables, specific troubled accounts and other currently available information. We continually evaluate the adequacy of the allowance for doubtful accounts and make adjustments as necessary. |
Finance Receivables and Allowance for Credit Losses | Finance Receivables and Allowance for Credit Losses Finance receivables are composed of sales-type lease receivables and unsecured revolving loan receivables. We estimate the probable losses and provide an allowance for credit losses. Our estimate is based on historical loss experience, the nature and volume of our portfolios, specific troubled accounts, and our ability to manage the collateral. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. 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 the client's payments reduce the account aging to less than 60 days 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 low because of the geographic and industry diversification of our clients and small account balances for most of our clients. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined on the last-in, first-out (LIFO) basis for most U.S. inventories and on the first-in, first-out (FIFO) basis for most non-U.S. inventories. |
Fixed Assets | Fixed Assets Property, plant and equipment and rental equipment are stated at cost and depreciated principally using the straight-line method over their estimated useful lives, which are up to 50 years for buildings, 10 to 20 years for building improvements, three to 12 years for machinery and equipment, four to six years for rental equipment and three to five years for computer equipment. Major improvements which add to productive capacity or extend the life of an asset are capitalized while repairs and maintenance are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Fully depreciated assets are retained in fixed assets and accumulated depreciation until they are removed from service. We capitalize certain costs for materials and services, payroll and other personnel-related costs and interest in the development of internal use software. These costs are amortized on a straight-line basis over three to 10 years. |
Intangible assets | Intangible assets Finite-lived intangible assets are amortized using either the straight-line method or an accelerated attrition method. |
Research and Development Costs | Research and Development Costs Research and product development costs include engineering costs related to research and product development activities and are expensed as incurred. |
Impairment Review for Long-lived and Finite-Lived Intangible Assets | Impairment Review for Long-lived and Finite-Lived Intangible Assets Long-lived assets and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset is compared to the asset's carrying value. If the sum of the undiscounted cash flows is less than the asset's carrying value, an impairment charge is recorded for an amount by which the asset's carrying value exceeds its fair value. The fair value of the impaired asset is determined using probability weighted expected cash flow estimates, quoted market prices when available and appraisals, as appropriate. We derive cash flow estimates from our long-term business plans and historical experience. |
Impairment Review for Goodwill | Impairment Review for Goodwill |
Retirement Plans | Retirement Plans Net periodic benefit cost includes current service cost, interest cost, expected return on plan assets and the amortization of actuarial gains and losses. Actuarial gains and losses arise from actual experiences that differ from previous assumptions as well as changes in assumptions including expected return on plan assets, discount rates used to measure pension and other postretirement obligations and life expectancy. The expected return on assets is measured using the market-related value of assets, which is a calculated value that recognizes changes in the fair value of plan assets over five years. Actuarial gains and losses are recognized in other comprehensive income, net of tax, and amortized to benefit cost primarily over the life expectancy of plan participants. The funded status of pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. |
Stock-based Compensation | Stock-based Compensation We measure compensation expense for stock-based awards based on the estimated fair value of the awards expected to vest (net of estimated forfeitures) and recognize the expense on a straight-line basis over the requisite service period. The fair value of stock awards is estimated based on the fair value of our common stock on the grant date, less the present value of expected dividends or using a Black-Scholes valuation model or a Monte Carlo simulation model. The determination of fair value requires assumptions be made regarding the expected stock price volatility, risk-free interest rate, life of the award and dividend yield. The expected stock price volatility is based on historical price changes of our stock. The risk-free interest rate is based on U.S. Treasuries with a term equal to the expected life of the award. The expected life of the award and expected dividend yield are based on historical experience. We believe that the valuation techniques and underlying assumptions are appropriate in estimating the fair value of stock awards. The majority of stock-based compensation expense is recorded in selling, general and administrative expense. |
Revenue Recognition | Revenue Recognition We derive revenue from multiple sources including sales, rentals, financing and services. Certain transactions are consummated at the same time and can therefore generate revenue from multiple sources. The most common form of these transactions involves a sale or noncancelable lease of equipment, a meter rental and an equipment maintenance agreement. In these multiple element arrangements, revenue is allocated to each of the elements based on relative "selling prices" determined based on vendor specific objective evidence (VSOE). We establish VSOE of selling prices based on the prices charged for each element when sold separately in standalone transactions. The allocation of relative selling price to the various elements impacts the timing of revenue recognition, but does not change the total revenue recognized. Revenue is allocated to the meter rental and equipment maintenance agreement elements using their respective selling prices charged in standalone and renewal transactions. For a sale transaction, revenue is allocated to the equipment based on a range of selling prices in standalone transactions. For a lease transaction, revenue is allocated to the equipment based on the present value of the remaining minimum lease payments. The amount allocated to equipment is compared to the range of selling prices in standalone transactions during the period to ensure the allocated equipment amount approximates average selling prices. More specifically, revenue related to our offerings is recognized as follows: Sales Revenue Sales of Equipment We sell equipment directly to our customers and to distributors (re-sellers) throughout the world. We recognize revenue from these sales when the risks and rewards of ownership transfer to the client, which is generally upon shipment or acceptance by the customer. We recognize revenue from the sale of equipment under sales-type leases as equipment sales revenue at the inception of the lease. We do not typically offer any rights of return or stock balancing rights. Sales revenue from customized equipment, mail creation equipment and shipping products is generally recognized when installed. Sales of Supplies Revenue related to supplies is generally recognized upon delivery. Standalone Software Sales and Integration Services We also have multiple element arrangements containing only software and software related elements. Software related elements may include maintenance and support services, data subscriptions, training and integration services. Under these multiple element arrangements, we allocate revenue based on VSOE for software related elements and use the residual method to determine the amount of software licenses revenue. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the consideration is allocated to the delivered elements and recognized as revenue. The majority of our software license arrangements are bundled with maintenance and support services and we establish VSOE of fair value using a bell-shaped curve analysis for maintenance and support services renewal rates. If we cannot obtain VSOE for any undelivered software element, revenue is deferred until all deliverables have been delivered or until VSOE can be determined for any remaining undelivered software elements. We recognize revenue from standalone software licenses upon delivery of the product when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. For software licenses that are included in a lease contract, we recognize revenue upon shipment of the software unless the lease contract specifies that the license expires at the end of the lease or the price of the software is deemed not fixed or determinable based on historical evidence of similar software leases. In these instances, revenue is recognized on a straight-line basis over the term of the lease contract. We recognize revenue from software requiring integration services at the point of customer acceptance. We recognize revenue related to off-the-shelf perpetual software licenses generally upon shipment. Rentals Revenue We rent equipment, primarily postage meters and mailing equipment, under short-term rental agreements. Rentals revenue includes revenue from the subscription for digital meter services. We may invoice in advance for postage meter rentals according to the terms of the agreement. We initially defer these advanced billings and recognize rentals revenue on a straight-line basis over the invoice period. Revenues generated from financing clients for the continued use of equipment subsequent to the expiration of the original lease are recognized as rentals revenue. We capitalize certain initial direct costs incurred in consummating a rental transaction and recognize these costs over the expected term of the agreement. At December 31, 2017 and 2016, there were $10 million and $11 million , respectively, of initial direct costs included in rental property and equipment, net in the Consolidated Balance Sheets. Amortization of initial direct costs was $5 million , $7 million and $8 million in 2017 , 2016 and 2015 , respectively. Financing Revenue We provide lease financing for our products primarily through sales-type leases. We also provide revolving lines of credit to our clients for the purchase of postage and supplies. We believe that our sales-type lease portfolio contains only normal collection risk. Accordingly, we record the fair value of equipment as sales revenue, the cost of equipment as cost of sales and the minimum lease payments plus the estimated residual value as finance receivables. The difference between the finance receivable and the equipment fair value is recorded as unearned income and is amortized as income over the lease term using the interest method. Equipment residual values are determined at inception of the lease using estimates of fair value at the end of the lease term. Fair value estimates are based primarily on historical experience. We also consider forecasted supply and demand for products, product retirement and launch plans, client behavior, regulatory changes, remanufacturing strategies, used equipment markets competition and technological changes. We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Estimated increases in future residual values are not recognized until the equipment is remarketed. Support Services Revenue We provide support services for our equipment primarily through maintenance contracts. Revenue related to these agreements is recognized on a straight-line basis over the term of the agreement. Business Services Revenue Business services revenue includes revenue from presort mail services, global ecommerce solutions and shipping solutions and is recognized as services are provided. We also evaluate the appropriateness of recording revenue on a gross basis when we act as a principal in a transaction or net basis when we act as an agent between a client and vendor. We consider several factors in determining whether we are acting as principal or agent such as whether we are the primary obligor to the client, have control over the pricing and have credit risk. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are recognized as incurred and recorded in cost of revenues. |
Deferred Marketing Costs | Deferred Marketing Costs We capitalize certain costs associated with the acquisition of new customers and recognize these costs over the expected revenue stream of eight years . At December 31, 2017 and 2016, deferred marketing costs were $36 million and $38 million , respectively. Amortization of deferred marketing costs was $13 million , $15 million and $18 million in 2017 , 2016 and 2015 , respectively. We review individual marketing programs for impairment on a quarterly basis or as circumstances warrant. |
Restructuring Charges | Restructuring Charges Costs associated with restructuring actions include employee severance, other employee separation costs and contract termination costs, including leases. These costs are recognized when a liability is incurred, which is generally upon communication to the affected employees or exit from a leased facility, and the amount to be paid is both probable and reasonably estimable. Severance accruals are based on company policy, historical experience and negotiated settlements. |
Derivative Instruments | Derivative Instruments In the normal course of business, we are exposed to the impact of changes in foreign currency exchange rates and interest rates. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivative instruments to limit the effects of currency exchange rate fluctuations on financial results and manage the related cost of debt. We do not use derivatives for trading or speculative purposes. We record our derivative instruments at fair value and the accounting for changes in fair value 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. To qualify as a hedge, a derivative must be highly effective in offsetting the risk designated for hedging purposes. The hedge relationship must be formally documented at inception, detailing the particular risk management objective and strategy for the hedge. The effectiveness of the hedge relationship is evaluated on a retrospective and prospective basis. The use of derivative instruments exposes us to counterparty credit risk. To mitigate such risks, we enter into contracts with only those financial institutions that meet stringent credit requirements. We regularly review our credit exposure balances as well as the creditworthiness of our counterparties. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date of such change. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. In estimating the necessity and amount of a valuation allowance, we consider all available evidence for each jurisdiction including historical operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. We adjust the valuation allowance through income tax expense when new information becomes available that would alter our determination of the amount of deferred tax assets that will ultimately be realized. |
Earnings per Share | Earnings per Share Basic earnings per share is computed on the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed based on the weighted-average number of common shares plus the dilutive effect of preference and preferred shares, stock awards and employee stock purchase plans. |
Translation of Non-U.S. Currency Amounts | Translation of Non-U.S. Currency Amounts In general, the functional currency of our foreign operations is the local currency. Assets and liabilities of subsidiaries operating outside the U.S. are translated at rates in effect at the end of the period and revenue and expenses are translated at average monthly rates during the period. Net deferred translation gains and losses are included as a component of accumulated other comprehensive income. |
Loss Contingencies | Loss Contingencies In the ordinary course of business, we are routinely defendants in, or party to, a number of pending and threatened legal actions. On a quarterly basis, we review the status of each significant matter and assess the potential financial exposure. If the potential loss from any claim or legal action is considered probable and can be reasonably estimated, we establish a liability for the estimated loss. The assessment of the ultimate outcome of each claim or legal action and the determination of the potential financial exposure requires significant judgment. Estimates of potential liabilities for claims or legal actions are based only on information that is available at that time. As additional information becomes available, we may revise our estimates, and these revisions could have a material impact on our results of operations and financial position. Legal fees are expensed as incurred. |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Pronouncements - Standards Adopted in 2017 In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) . The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on certain specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We elected to early adopt this standard effective October 1, 2017. Accordingly, a $7 million premium payment associated with the early extinguishment of debt was classified as financing activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2017. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the current two-step goodwill impairment test and requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). The ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We elected to early adopt this standard effective January 1, 2017. The adoption of this standard had no impact on our consolidated financial statements or disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The standard includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. We retroactively adopted this ASU effective January 1, 2017. Accordingly, the Condensed Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 has been recast to reclassify cash payments of $5 million and $8 million , respectively, from operating activities to financing activities. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory , which requires inventory to be measured at the lower of cost and net realizable value (estimated selling price less reasonably predictable costs of completion, disposal and transportation). Inventory measured under LIFO is not impacted by the new guidance. This standard became effective January 1, 2017 and there was no impact on our consolidated financial statements or disclosures. New Accounting Pronouncements - Standards Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU changes the recognition and presentation requirements of hedge accounting and reduces the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing and hedge documentation. We will early adopt this standard as of January 1, 2018 and there will be no impact on our consolidated financial statements as of that date. The impact on our consolidated financial statements will depend on the facts and circumstances of any future transactions. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting . The ASU provides guidance about which changes to terms and conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective beginning January 1, 2018 and would be applied prospectively to awards modified on or after the effective date. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The standard will be applied on a modified retrospective basis through a cumulative effect adjustment as of the beginning of the period of adoption. The standard is effective beginning January 1, 2019, however early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. The standard is effective beginning January 1, 2018. The adoption of this standard will impact how net periodic pension costs are reported on the face of our income statement, but will not have an impact on our income from continuing operations or net income. In January 2017, the FASB issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting . The ASU requires separate disclosure in the statement of net assets available for benefits and the statement of changes in net assets available for benefits of changes in any interests held in a Master Trust and other enhanced disclosures. The standard is effective beginning January 1, 2019. We are currently evaluating the impact of this standard on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities in evaluating whether transactions should be accounted for as an acquisition or disposal of assets or a business. The standard is effective beginning January 1, 2018. The impact on our consolidated financial statements will depend on the facts and circumstances of any future transactions. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-entity Transfers of Assets other than Inventory, which requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under current guidance, the tax effects of transfers are deferred until the transferred asset is sold or otherwise recovered through use. The standard is effective beginning January 1, 2018. The adoption of this standard will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses . The ASU sets forth a “current expected credit loss” (CECL) model, which requires companies to measure expected credit losses for all financial instruments held at the reporting date based on historical experience, current conditions and reasonably supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective beginning January 1, 2020. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. This standard, among other things, requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability and provide enhanced disclosures. The standard is effective beginning January 1, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The standard is effective beginning January 1, 2018. The adoption of this standard will not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires companies to recognize revenue when or as control of a promised good or service is transferred to a client in amounts that reflect the consideration the company expects to receive in exchange for those goods and services. In addition, the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue. The standard is effective beginning January 1, 2018 and can be adopted either retrospectively to each reporting period presented or on a modified retrospective basis with a cumulative effect adjustment at the date of the initial application. We will adopt the standard on the modified retrospective basis with a cumulative effect adjustment, which will not be material to the consolidated financial statements. Based on our assessment of the standard, we will not have changes in revenue recognition for the majority of our product and service offerings. The standard will have the most impact on the timing of certain revenues in our Software Solutions segment. Specifically, for certain data subscription offerings, the portion of the transaction price allocated to the initial data set will be recognized as revenue at the time of initial delivery rather than over the subscription period, and for certain software licenses, revenue will be recognized ratably over the specific contract term rather than predominately at the time of billing and delivery. With regard to costs, we concluded that certain marketing costs associated with the acquisition of new customers will be expensed as incurred rather than recognized over their expected revenue stream of eight years. Additionally, certain sales commission plans will qualify for capitalization under the new standard. We have elected to use the practical expedient that allows companies to expense costs to obtain a contract when the estimated amortization period is less than one year. We have implemented internal controls, accounting policies, and systems to facilitate the preparation of financial information that will be required under the new standard. We do not expect the adoption of this standard will have a material impact to our consolidated financial statements on an ongoing basis. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue From Segments to Consolidated Statements | The following tables provide information about our reportable segments. Revenues Years Ended December 31, 2017 2016 2015 North America Mailing $ 1,356,561 $ 1,427,094 $ 1,530,060 International Mailing 383,670 411,642 449,828 Small & Medium Business Solutions 1,740,231 1,838,736 1,979,888 Production Mail 407,194 404,703 421,178 Presort Services 497,901 475,582 473,612 Enterprise Business Solutions 905,095 880,285 894,790 Software Solutions 352,380 348,234 385,908 Global Ecommerce 552,242 339,320 262,667 Digital Commerce Solutions 904,622 687,554 648,575 Other — — 54,807 Total revenue $ 3,549,948 $ 3,406,575 $ 3,578,060 Geographic data: United States $ 2,738,711 $ 2,589,535 $ 2,681,285 Outside United States 811,237 817,040 896,775 Total $ 3,549,948 $ 3,406,575 $ 3,578,060 |
Reconciliation of EBIT From Segments to Consolidated Statements | EBIT Years Ended December 31, 2017 2016 2015 North America Mailing $ 497,809 $ 592,978 $ 663,031 International Mailing 48,164 44,806 49,071 Small & Medium Business Solutions 545,973 637,784 712,102 Production Mail 50,513 54,061 48,254 Presort Services 97,506 95,258 104,655 Enterprise Business Solutions 148,019 149,319 152,909 Software Solutions 41,635 30,159 48,531 Global Ecommerce (17,899 ) 3,043 5,110 Digital Commerce Solutions 23,736 33,202 53,641 Other — — 10,569 Total EBIT 717,728 820,305 929,221 Reconciling items: Interest, net (164,162 ) (144,211 ) (159,374 ) Unallocated corporate expenses (204,211 ) (189,215 ) (213,095 ) Goodwill impairment — (171,092 ) — Restructuring charges and asset impairments, net (59,431 ) (63,296 ) (25,782 ) Gain on sale of technology 6,085 — — Acquisition/disposition related expenses (9,164 ) (5,585 ) (14,983 ) Other (expense) income, net (3,856 ) (536 ) 94,838 Income from continuing operations before income taxes 282,989 246,370 610,825 Provision for income taxes 21,649 131,819 189,778 (Loss) income from discontinued operations, net of tax — (2,701 ) 5,271 Net income $ 261,340 $ 111,850 $ 426,318 |
Reconciliation of Depreciation and Amortization from Segments to Consolidated | Depreciation and amortization Years Ended December 31, 2017 2016 2015 North America Mailing $ 64,803 $ 60,066 $ 58,141 International Mailing 18,562 19,431 23,262 Small & Medium Business Solutions 83,365 79,497 81,403 Production Mail 2,686 4,421 4,075 Presort Services 26,541 27,929 27,305 Enterprise Business Solutions 29,227 32,350 31,380 Software Solutions 8,978 14,621 18,151 Global Ecommerce 36,662 30,607 21,025 Digital Commerce Solutions 45,640 45,228 39,176 Other — — 2,057 Total for reportable segments 158,232 157,075 154,016 Unallocated amount 24,104 21,411 19,296 Total depreciation and amortization $ 182,336 $ 178,486 $ 173,312 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Capital expenditures Years Ended December 31, 2017 2016 2015 North America Mailing $ 69,131 $ 83,547 $ 60,621 International Mailing 11,982 3,163 11,196 Small & Medium Business Solutions 81,113 86,710 71,817 Production Mail 2,893 1,599 3,418 Presort Services 20,860 17,537 17,096 Enterprise Business Solutions 23,753 19,136 20,514 Software Solutions 9,181 4,617 1,688 Global Ecommerce 26,810 15,647 17,321 Digital Commerce Solutions 35,991 20,264 19,009 Other — — 857 Total for reportable segments 140,857 126,110 112,197 Unallocated amount 30,133 34,721 54,549 Total capital expenditures $ 170,990 $ 160,831 $ 166,746 |
Reconciliation of Assets from Segment to Consolidated | Assets December 31, 2017 2016 2015 North America Mailing $ 1,959,206 $ 2,066,480 $ 2,562,816 International Mailing 552,570 532,647 594,564 Small & Medium Business Solutions 2,511,776 2,599,127 3,157,380 Production Mail 260,977 239,358 244,156 Presort Services 387,701 373,443 374,647 Enterprise Business Solutions 648,678 612,801 618,803 Software Solutions 658,737 645,349 858,308 Global Ecommerce 1,016,045 449,363 438,917 Digital Commerce Solutions 1,674,782 1,094,712 1,297,225 Total for reportable segments 4,835,236 4,306,640 5,073,408 Reconciliation to consolidated amount: Cash and cash equivalents 1,009,021 764,522 640,190 Short-term investments 48,988 38,448 127,388 Other corporate assets 785,470 727,523 282,146 Total assets $ 6,678,715 $ 5,837,133 $ 6,123,132 |
Long-Lived Assets in Individual Foreign Countries by Country | Identifiable long-lived assets: United States $ 506,064 $ 441,443 $ 434,557 Outside United States 58,250 61,214 73,046 Total $ 564,314 $ 502,657 $ 507,603 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The calculations of basic and diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 are presented below. The sum of earnings per share amounts may not equal the totals due to rounding. Years Ended December 31, 2017 2016 2015 Numerator: Net income from continuing operations $ 261,340 $ 95,506 $ 402,672 (Loss) income from discontinued operations — (2,701 ) 5,271 Net income (numerator for diluted EPS) 261,340 92,805 407,943 Less: Preference stock dividend 36 38 41 Income attributable to common stockholders (numerator for basic EPS) $ 261,304 $ 92,767 $ 407,902 Denominator (in thousands): Weighted-average shares used in basic EPS 186,332 187,945 199,835 Effect of dilutive shares 1,103 1,030 1,110 Weighted-average shares used in diluted EPS 187,435 188,975 200,945 Basic earnings per share: Continuing operations $ 1.40 $ 0.51 $ 2.01 Discontinued operations — (0.01 ) 0.03 Net income attributable to Pitney Bowes Inc. $ 1.40 $ 0.49 $ 2.04 Diluted earnings per share: Continuing operations $ 1.39 $ 0.51 $ 2.00 Discontinued operations — (0.01 ) 0.03 Net income attributable to Pitney Bowes Inc. $ 1.39 $ 0.49 $ 2.03 Anti-dilutive options excluded from diluted earnings per share (in thousands): 10,267 8,126 8,079 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Components | Inventories at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Raw materials $ 30,166 $ 28,541 Work in process 4,981 6,498 Supplies and service parts 45,366 45,152 Finished products 21,765 24,678 Inventory at FIFO cost, net 102,278 104,869 Excess of FIFO cost over LIFO cost (12,599 ) (12,143 ) Total inventory, net $ 89,679 $ 92,726 |
Finance Assets (Tables)
Finance Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Financing Receivables | Finance receivables at December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,023,549 $ 292,059 $ 1,315,608 $ 1,088,053 $ 273,262 $ 1,361,315 Unguaranteed residual values 74,093 14,202 88,295 90,190 13,655 103,845 Unearned income (216,720 ) (62,325 ) (279,045 ) (223,908 ) (60,458 ) (284,366 ) Allowance for credit losses (7,721 ) (2,794 ) (10,515 ) (8,247 ) (2,647 ) (10,894 ) Net investment in sales-type lease receivables 873,201 241,142 1,114,343 946,088 223,812 1,169,900 Loan receivables Loan receivables 339,373 34,492 373,865 374,147 32,716 406,863 Allowance for credit losses (7,098 ) (1,020 ) (8,118 ) (8,517 ) (1,089 ) (9,606 ) Net investment in loan receivables 332,275 33,472 365,747 365,630 31,627 397,257 Net investment in finance receivables $ 1,205,476 $ 274,614 $ 1,480,090 $ 1,311,718 $ 255,439 $ 1,567,157 |
Schedule of Financing Receivables, Minimum Payments | Maturities of gross sales-type lease finance receivables at December 31, 2017 were as follows: Sales-type Lease Receivables North America International Total 2018 $ 513,886 $ 130,804 $ 644,690 2019 262,303 74,546 336,849 2020 154,581 49,203 203,784 2021 70,307 27,443 97,750 2022 18,340 9,104 27,444 Thereafter 4,132 959 5,091 Total $ 1,023,549 $ 292,059 $ 1,315,608 |
Allowance For Credit Losses On Financing Receivables | Activity in the allowance for credit losses for the years ended December 31, 2017 , 2016 and 2015 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at December 31, 2014 $ 10,125 $ 5,023 $ 11,068 $ 1,788 $ 28,004 Amounts charged to expense 1,189 890 8,286 1,023 11,388 Accounts written off (4,708 ) (2,371 ) (9,330 ) (1,293 ) (17,702 ) Balance at December 31, 2015 6,606 3,542 10,024 1,518 21,690 Amounts charged to expense 5,136 1,161 6,238 836 13,371 Accounts written off (3,495 ) (2,056 ) (7,745 ) (1,265 ) (14,561 ) Balance at December 31, 2016 8,247 2,647 8,517 1,089 20,500 Amounts charged to expense 7,544 1,280 6,273 510 15,607 Accounts written off (8,070 ) (1,133 ) (7,692 ) (579 ) (17,474 ) Balance at December 31, 2017 $ 7,721 $ 2,794 $ 7,098 $ 1,020 $ 18,633 |
Past Due Financing Receivables | The aging of finance receivables at December 31, 2017 and 2016 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total December 31, 2017 1 - 90 days $ 971,002 $ 286,170 $ 330,503 $ 34,239 $ 1,621,914 > 90 days 52,547 5,889 8,870 253 67,559 Total $ 1,023,549 $ 292,059 $ 339,373 $ 34,492 $ 1,689,473 Past due amounts > 90 days Still accruing interest $ 10,807 $ 1,738 $ — $ — $ 12,545 Not accruing interest 41,740 4,151 8,870 253 55,014 Total $ 52,547 $ 5,889 $ 8,870 $ 253 $ 67,559 As of December 31, 2017, North American sales-type lease receivables aged greater than 90 days had a full contract value of $53 million . As of February 15, 2018, we received payments with a contract value of $28 million related to these receivables. Sales-type Lease Receivables Loan Receivables North America International North America International Total December 31, 2016 1 - 90 days $ 1,025,313 $ 269,247 $ 366,726 $ 32,420 $ 1,693,706 > 90 days 62,740 4,015 7,421 296 74,472 Total $ 1,088,053 $ 273,262 $ 374,147 $ 32,716 $ 1,768,178 Past due amounts > 90 days Still accruing interest $ 8,831 $ 972 $ — $ — $ 9,803 Not accruing interest 53,909 3,043 7,421 296 64,669 Total $ 62,740 $ 4,015 $ 7,421 $ 296 $ 74,472 |
Financing Receivable Credit Quality Indicators | The table below shows the North America portfolio at December 31, 2017 and 2016 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. Some accounts are not scored; however, 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 may become delinquent in the next 12 month period. • Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers. • Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers. • High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers. December 31, 2017 2016 Sales-type lease receivables Low $ 819,776 $ 879,823 Medium 148,000 135,953 High 21,728 22,600 Not Scored 34,045 49,677 Total $ 1,023,549 $ 1,088,053 Loan receivables Low $ 262,646 $ 296,598 Medium 56,744 53,647 High 6,791 7,216 Not Scored 13,192 16,686 Total $ 339,373 $ 374,147 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Land $ 9,333 $ 9,908 Buildings 207,024 185,431 Capitalized software 224,753 192,395 Machinery and equipment 703,924 610,597 1,145,034 998,331 Accumulated depreciation (765,990 ) (683,728 ) Property, plant and equipment, net $ 379,044 $ 314,603 Rental property and equipment $ 394,627 $ 400,913 Accumulated depreciation (208,886 ) (212,859 ) Rental property and equipment, net $ 185,741 $ 188,054 |
Acquisitions, Divestiture, In35
Acquisitions, Divestiture, Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Allocation of Purchase Price | The allocation of the purchase price to the fair values of assets acquired and liabilities assumed was as follows: Accounts receivable $ 36,195 Other current assets 16,051 Fixed assets 26,933 Goodwill 330,272 Intangible assets 135,640 Accounts payable and other current liabilities (21,500 ) Deferred taxes, net (52,363 ) Other assets and liabilities, net (688 ) $ 470,540 |
Intangible Assets Acquired | Intangible assets acquired consisted of the following: Value Amortization period Customer relationships $ 111,600 — 10 years Developed technology 19,000 — 5 years Tradenames 4,300 — 3 years Other 740 1-3 years Total intangible assets, net $ 135,640 |
Intangible Assets Disclosure | Intangible assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 526,149 $ (292,500 ) $ 233,649 $ 445,039 $ (300,906 ) $ 144,133 Software & technology 173,141 (144,742 ) 28,399 150,037 (136,508 ) 13,529 Trademarks & other 42,505 (32,367 ) 10,138 36,212 (28,702 ) 7,510 Total intangible assets, net $ 741,795 $ (469,609 ) $ 272,186 $ 631,288 $ (466,116 ) $ 165,172 |
Future Amortization | The future amortization expense for intangible assets at December 31, 2017 is as follows: Year ended December 31, 2018 $ 42,564 2019 38,838 2020 34,251 2021 30,631 2022 29,223 Thereafter 96,679 Total $ 272,186 |
Schedule of Goodwill | The changes in the carrying amount of goodwill, by reporting segment, for the years ended December 31, 2017 and 2016 are shown in the tables below. Gross value before accumulated impairment Accumulated impairment December 31, 2016 Acquisition Impairment Other (1) December 31, 2017 North America Mailing $ 354,000 $ — $ 354,000 $ — $ — $ 14,905 $ 368,905 International Mailing 145,566 — 145,566 — — 12,637 158,203 Small & Medium Business Solutions 499,566 — 499,566 — — 27,542 527,108 Production Mail 101,099 — 101,099 — — 6,390 107,489 Presort Services 196,890 — 196,890 7,891 — — 204,781 Enterprise Business Solutions 297,989 — 297,989 7,891 — 6,390 312,270 Software Solutions 672,683 (171,092 ) 501,591 — — 9,014 510,605 Global Ecommerce 272,189 — 272,189 330,272 — — 602,461 Digital Commerce Solutions 944,872 (171,092 ) 773,780 330,272 — 9,014 1,113,066 Total goodwill $ 1,742,427 $ (171,092 ) $ 1,571,335 $ 338,163 $ — $ 42,946 $ 1,952,444 Gross value before accumulated impairment Accumulated impairment December 31, 2015 Acquisition Impairment Other (1) December 31, 2016 North America Mailing $ 357,215 $ — $ 357,215 $ — $ — $ (3,215 ) $ 354,000 International Mailing 148,351 — 148,351 — — (2,785 ) 145,566 Small & Medium Business Solutions 505,566 — 505,566 — — (6,000 ) 499,566 Production Mail 105,757 — 105,757 — — (4,658 ) 101,099 Presort Services 196,890 — 196,890 — — — 196,890 Enterprise Business Solutions 302,647 — 302,647 — — (4,658 ) 297,989 Software Solutions 674,976 — 674,976 11,908 (171,092 ) (14,201 ) 501,591 Global Ecommerce 262,768 — 262,768 9,421 — — 272,189 Digital Commerce Solutions 937,744 — 937,744 21,329 (171,092 ) (14,201 ) 773,780 Total goodwill $ 1,745,957 $ — $ 1,745,957 $ 21,329 $ (171,092 ) $ (24,859 ) $ 1,571,335 (1) Primarily represents foreign currency translation adjustments. |
Fair Value Measurements and D36
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy. 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 December 31, 2017 and 2016 . December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 143,349 $ 542,568 $ — $ 685,917 Equity securities — 40,717 — 40,717 Commingled fixed income securities 1,569 4,516 — 6,085 Government and related securities 116,041 18,587 — 134,628 Corporate debt securities — 75,109 — 75,109 Mortgage-backed / asset-backed securities — 158,202 — 158,202 Derivatives Interest rate swap — 1,776 — 1,776 Foreign exchange contracts — 122 — 122 Total assets $ 260,959 $ 841,597 $ — $ 1,102,556 Liabilities: Derivatives Foreign exchange contracts $ — $ (335 ) $ — $ (335 ) Total liabilities $ — $ (335 ) $ — $ (335 ) December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 114,471 $ 217,175 $ — $ 331,646 Equity securities — 24,571 — 24,571 Commingled fixed income securities 1,536 22,132 — 23,668 Government and related securities 116,822 19,358 — 136,180 Corporate debt securities — 69,891 — 69,891 Mortgage-backed / asset-backed securities — 158,996 — 158,996 Derivatives Interest rate swap — 1,588 — 1,588 Foreign exchange contracts — 637 — 637 Total assets $ 232,829 $ 514,348 $ — $ 747,177 Liabilities: Derivatives Foreign exchange contracts $ — $ (3,717 ) $ — $ (3,717 ) Total liabilities $ — $ (3,717 ) $ — $ (3,717 ) |
Available-for-sale Securities | At December 31, 2017 and 2016 , available-for-sale securities consisted of the following: December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 131,872 $ 1,984 $ (1,090 ) $ 132,766 Corporate debt securities 73,612 1,724 (227 ) 75,109 Commingled fixed income securities 1,796 — (40 ) 1,756 Mortgage-backed / asset-backed securities 158,496 1,348 (1,642 ) 158,202 Total $ 365,776 $ 5,056 $ (2,999 ) $ 367,833 December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 136,316 $ 1,571 $ (1,707 ) $ 136,180 Corporate debt securities 69,376 1,180 (665 ) 69,891 Commingled fixed income securities 1,568 — (32 ) 1,536 Mortgage-backed / asset-backed securities 159,312 1,566 (1,882 ) 158,996 Total $ 366,572 $ 4,317 $ (4,286 ) $ 366,603 |
Schedule of Available-for-sale Securities Reconciliation | At December 31, 2017 , scheduled maturities of available-for-sale securities were as follows: Amortized cost Estimated fair value Within 1 year $ 38,624 $ 38,414 After 1 year through 5 years 111,756 111,704 After 5 years through 10 years 68,599 69,154 After 10 years 146,797 148,561 Total $ 365,776 $ 367,833 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative instruments at December 31, 2017 and 2016 was as follows: December 31, Designation of Derivatives Balance Sheet Location 2017 2016 Derivatives designated as hedging instruments Foreign exchange contracts Other current assets and prepayments $ 57 $ 487 Accounts payable and accrued liabilities (144 ) (136 ) Interest rate swap Other non-current assets 1,776 1,588 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 65 150 Accounts payable and accrued liabilities (191 ) (3,581 ) Total derivative assets 1,898 2,225 Total derivative liabilities (335 ) (3,717 ) Total net derivative liability $ 1,563 $ (1,492 ) |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following represents the results of cash flow hedging relationships for the years ended December 31, 2017 and 2016 : Years Ended December 31, Derivative Gain (Loss) Recognized in AOCI (Effective Portion) Location of Gain (Loss) (Effective Portion) Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) Derivative Instrument 2017 2016 2017 2016 Foreign exchange contracts $ (650 ) $ 496 Revenue $ (179 ) $ (68 ) Cost of sales (32 ) 222 Interest rate swap $ 1,776 $ 1,588 Interest Expense — — $ (211 ) $ 154 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following represents the results of our non-designated derivative instruments for the years ended December 31, 2017 and 2016 : Years Ended December 31, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2017 2016 Foreign exchange contracts Selling, general and administrative expense $ (2,203 ) $ (2,382 ) |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of our debt at December 31, 2017 and 2016 was as follows: December 31, 2017 2016 Carrying value $ 3,830,335 $ 3,364,890 Fair value $ 3,718,986 $ 3,412,581 |
Supplemental Balance Sheet In37
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Balance Sheet Information | The following table shows selected balance sheet information at December 31, 2017 and 2016 : December 31, 2017 2016 Other assets: Long-term investments $ 435,612 $ 425,732 Other 105,184 99,041 Total $ 540,796 $ 524,773 Accounts payable and accrued liabilities: Accounts payable $ 302,101 $ 293,538 Customer deposits 693,004 688,772 Employee related liabilities 260,116 205,901 Other 231,520 190,611 Total $ 1,486,741 $ 1,378,822 |
Restructuring Charges and Ass38
Restructuring Charges and Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The table below shows the activity in our restructuring reserves for the years ended December 31, 2017 and 2016 : Severance and benefits costs Other exit costs Total Balance at December 31, 2015 $ 43,700 $ 3,722 $ 47,422 Expenses, net 44,510 1,655 46,165 Cash payments (59,834 ) (5,096 ) (64,930 ) Balance at December 31, 2016 28,376 281 28,657 Expenses, net 53,322 2,545 55,867 Cash payments (39,547 ) (1,257 ) (40,804 ) Balance at December 31, 2017 $ 42,151 $ 1,569 $ 43,720 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | December 31, Interest rate 2017 2016 Notes due September 2017 5.75% $ — $ 385,109 Notes due March 2018 5.60% 250,000 250,000 Notes due May 2018 4.75% — 350,000 Notes due March 2019 6.25% 300,000 300,000 Notes due September 2020 3.625% 300,000 — Notes due October 2021 3.625% 600,000 600,000 Notes due May 2022 4.125% 400,000 — Notes due April 2023 4.70% 400,000 — Notes due March 2024 4.625% 500,000 500,000 Notes due January 2037 5.25% 35,841 115,041 Notes due March 2043 6.70% 425,000 425,000 Term loans Variable 650,000 450,000 Other debt 5,476 5,677 Principal amount 3,866,317 3,380,827 Less: unamortized costs, net 35,982 15,937 Total debt 3,830,335 3,364,890 Less: current portion long-term debt 271,057 614,485 Long-term debt $ 3,559,278 $ 2,750,405 |
Schedule of Maturities of Long-term Debt | Annual maturities of outstanding debt at December 31, 2017 are as follows: 2018 $ 270,000 2019 500,000 2020 730,476 2021 600,000 2022 400,000 Thereafter 1,365,841 Total $ 3,866,317 |
Retirement Plans and Postreti40
Retirement Plans and Postretirement Medical Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Benefit Obligation, Plan Assets and the Funded Status of Defined Benefit Pension Plans | The benefit obligations and funded status of defined benefit pension plans are as follows: United States Foreign 2017 2016 2017 2016 Accumulated benefit obligation $ 1,726,824 $ 1,677,288 $ 737,580 $ 675,566 Projected benefit obligation Benefit obligation - beginning of year $ 1,678,097 $ 1,689,885 $ 688,172 $ 647,112 Service cost 132 105 2,274 2,148 Interest cost 68,611 73,699 18,836 21,886 Plan participants' contributions — — 6 6 Actuarial loss 92,789 31,764 2,098 127,054 Foreign currency changes — — 64,236 (88,138 ) Settlement — (5,887 ) — (423 ) Benefits paid (111,892 ) (111,469 ) (24,249 ) (21,473 ) Benefit obligation - end of year $ 1,727,737 $ 1,678,097 $ 751,373 $ 688,172 Fair value of plan assets Fair value of plan assets - beginning of year $ 1,464,082 $ 1,460,790 $ 547,290 $ 530,112 Actual return on plan assets 199,749 110,954 46,542 68,067 Company contributions 5,968 9,694 13,081 40,872 Plan participants' contributions — — 6 6 Settlement — (5,887 ) — (423 ) Foreign currency changes — — 50,040 (69,871 ) Benefits paid (111,892 ) (111,469 ) (24,249 ) (21,473 ) Fair value of plan assets - end of year $ 1,557,907 $ 1,464,082 $ 632,710 $ 547,290 Amounts recognized in the Consolidated Balance Sheets Noncurrent asset $ 392 $ 310 $ 19,139 $ 11,744 Current liability (8,362 ) (7,937 ) (1,188 ) (1,045 ) Noncurrent liability (161,860 ) (206,388 ) (136,614 ) (151,581 ) Funded status $ (169,830 ) $ (214,015 ) $ (118,663 ) $ (140,882 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 : United States Foreign 2017 2016 2017 2016 Projected benefit obligation $ 1,727,292 $ 1,677,675 $ 614,371 $ 578,588 Accumulated benefit obligation $ 1,726,378 $ 1,676,866 $ 601,412 $ 565,992 Fair value of plan assets $ 1,557,069 $ 1,463,350 $ 476,825 $ 425,962 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligation for nonpension postretirement benefit plans recognized in other comprehensive income were as follows: 2017 2016 Net actuarial loss (gain) $ 5,134 $ (13,934 ) Amortization of net actuarial loss (3,600 ) (3,615 ) Amortization of prior service cost (297 ) (297 ) Total recognized in other comprehensive income $ 1,237 $ (17,846 ) The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows: Net actuarial loss $ 3,736 Prior service cost 351 Total $ 4,087 Pretax amounts recognized in AOCI consist of: United States Foreign 2017 2016 2017 2016 Net actuarial loss $ 835,265 $ 873,523 $ 321,914 $ 342,169 Prior service credit (391 ) (452 ) (597 ) (667 ) Transition asset — — (24 ) (32 ) Total $ 834,874 $ 873,071 $ 321,293 $ 341,470 The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows: United States Foreign Net actuarial loss $ 32,303 $ 7,304 Prior service credit (60 ) (72 ) Transition asset — (7 ) Total $ 32,243 $ 7,225 Other changes in plan assets and benefit obligations for defined benefit pension plans recognized in other comprehensive income were as follows: United States Foreign 2017 2016 2017 2016 Net actuarial (gain) loss $ (9,304 ) $ 22,728 $ (12,202 ) $ 91,549 Amortization of net actuarial loss (28,954 ) (27,220 ) (8,052 ) (5,264 ) Amortization of prior service credit 60 60 71 73 Net transition asset — — 8 8 Settlement — (2,109 ) — (110 ) Total recognized in other comprehensive income $ (38,198 ) $ (6,541 ) $ (20,175 ) $ 86,256 |
Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs | The weighted-average discount rates used to determine end of year benefit obligation and net periodic pension cost include: 2017 2016 2015 Discount rate used to determine benefit obligation U.S. 3.55 % 3.90 % 4.20 % Canada 3.35 % 3.65 % 3.95 % Discount rate used to determine net period benefit cost U.S. 3.90 % 4.20 % 3.90 % Canada 3.65 % 3.95 % 3.80 % Weighted-average actuarial assumptions used to determine end of year benefit obligations and net periodic benefit cost for defined benefit pension plans include: 2017 2016 2015 United States Used to determine benefit obligations Discount rate 3.69% 4.20% 4.55% Rate of compensation increase N/A N/A N/A Used to determine net periodic benefit cost Discount rate 4.20% 4.55% 4.15% Expected return on plan assets 6.75% 7.00% 7.0% Rate of compensation increase N/A N/A N/A Foreign Used to determine benefit obligations Discount rate 0.65 % - 3.35% 0.70 % - 3.65% 1.15 % - 3.95% Rate of compensation increase 1.50 % - 2.50% 1.50 % - 2.50% 1.50 % - 3.50% Used to determine net periodic benefit cost Discount rate 0.70 % - 3.65% 1.15 % - 3.95% 1.10 % - 3.80% Expected return on plan assets 3.75 % - 6.25% 3.75 % - 6.51% 4.00 % - 7.00% Rate of compensation increase 1.50 % - 3.30% 1.50 % - 3.50% 1.50 % - 3.50% |
Schedule of Target Allocation and Percentage of Plan Assets for Domestic Pension Plan | 2018 , 2017 and 2016 for the U.S. pension plans were as follows: Target allocation Percent of Plan Assets at December 31, 2018 2017 2016 Asset category U.S. equities 15 % 15 % 17 % Non-U.S. equities 15 % 15 % 13 % Fixed income 60 % 62 % 60 % Real estate 5 % 6 % 6 % Private equity 5 % 2 % 4 % Total 100 % 100 % 100 % |
Schedule of Target Allocation and Percentage of Plan Assets for Foreign Pension Plan | 2018 , 2017 and 2016 were as follows: Target Allocation Percent of Plan Assets at December 31, 2018 2017 2016 Asset category U.K. equities 10 % 10 % 22 % Non-U.K. equities 30 % 29 % 19 % Fixed income 40 % 41 % 41 % Real estate 10 % 9 % 8 % Diversified growth 10 % 9 % 9 % Cash — % 2 % 1 % Total 100 % 100 % 100 % |
Schedule of Fair Value Measurement of Plan Assets | United States Pension Plans December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds $ 8,810 $ 9,350 $ — $ 18,160 Equity securities 152,815 150,043 — 302,858 Commingled fixed income securities — 377,078 — 377,078 Government and related securities 295,404 20,473 — 315,877 Corporate debt securities — 418,908 — 418,908 Mortgage-backed securities /asset-backed securities — 19,223 — 19,223 Private equity — — 38,362 38,362 Real estate — — 91,352 91,352 Securities lending collateral (1) — 152,179 — 152,179 Total plan assets at fair value $ 457,029 $ 1,147,254 $ 129,714 $ 1,733,997 Securities lending payable (1) (152,179 ) Cash 5,186 Other (29,097 ) Fair value of plan assets $ 1,557,907 December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ 2,604 $ 6,609 $ — $ 9,213 Equity securities 184,254 140,691 — 324,945 Commingled fixed income securities — 358,776 — 358,776 Government and related securities 214,068 21,126 — 235,194 Corporate debt securities — 367,369 — 367,369 Mortgage-backed securities /asset-backed securities — 14,072 1,236 15,308 Private equity — — 49,637 49,637 Real estate — — 87,852 87,852 Securities lending collateral (1) — 174,651 — 174,651 Total plan assets at fair value $ 400,926 $ 1,083,294 $ 138,725 $ 1,622,945 Securities lending payable (1) (174,651 ) Cash 18,164 Other (2,376 ) Fair value of plan assets $ 1,464,082 (1) Securities lending collateral is offset by a corresponding securities lending payable amount. Foreign Plans December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds $ — $ 13,375 $ — $ 13,375 Equity securities — 226,032 — 226,032 Commingled fixed income securities — 213,844 — 213,844 Government and related securities — 66,115 — 66,115 Corporate debt securities — 24,889 — 24,889 Real estate — — 41,601 41,601 Diversified growth funds — — 44,024 44,024 Total plan assets at fair value $ — $ 544,255 $ 85,625 $ 629,880 Cash 2,203 Other 627 Fair value of plan assets $ 632,710 December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ — $ 6,811 $ — $ 6,811 Equity securities 32,295 181,943 — 214,238 Commingled fixed income securities — 69,022 — 69,022 Government and related securities — 29,363 — 29,363 Corporate debt securities — 150,767 — 150,767 Real estate — — 34,483 34,483 Diversified growth funds — — 36,779 36,779 Total plan assets at fair value $ 32,295 $ 437,906 $ 71,262 $ 541,463 Cash 4,262 Other 1,565 Fair value of plan assets $ 547,290 |
Schedule of Changes in Fair Value of Level 3 Assets Domestic | The following table summarizes the changes in the fair value of Level 3 assets for the years ended December 31, 2017 and 2016 : United States Pension Plans MBS & ABS Private equity Real estate Total Balance at December 31, 2015 $ 1,592 $ 63,577 $ 82,569 $ 147,738 Realized gains 8 10,200 1,280 11,488 Unrealized gains (losses) 38 (7,540 ) 4,815 (2,687 ) Net purchases, sales and settlements (402 ) (16,600 ) (812 ) (17,814 ) Balance at December 31, 2016 1,236 49,637 87,852 138,725 Realized gains 25 9,226 980 10,231 Unrealized gains (losses) 49 (2,334 ) 2,397 112 Net purchases, sales and settlements (1,310 ) (18,167 ) 123 (19,354 ) Balance at December 31, 2017 $ — $ 38,362 $ 91,352 $ 129,714 Foreign Pension Plans Real estate Diversified growth funds Total Balance at December 31, 2015 $ 39,177 $ 20,513 $ 59,690 Unrealized gains 459 2,561 3,020 Net purchases, sales and settlements 1,436 19,028 20,464 Foreign currency loss (6,589 ) (5,323 ) (11,912 ) Balance at December 31, 2016 34,483 36,779 71,262 Unrealized gains 2,159 3,551 5,710 Net purchases, sales and settlements 1,481 — 1,481 Foreign currency gain 3,478 3,694 7,172 Balance at December 31, 2017 $ 41,601 $ 44,024 $ 85,625 |
Schedule of Change in Benefit Obligation, Plan Assets and the Funded Status of Nonpension Benefit Plans | The benefit obligation and funded status for nonpension postretirement benefit plans are as follows: 2017 2016 Benefit obligation Benefit obligation - beginning of year $ 189,772 $ 211,878 Service cost 1,727 2,046 Interest cost 7,100 7,969 Plan participants' contributions 3,820 4,241 Actuarial loss (gain) 5,134 (13,934 ) Foreign currency changes 1,066 409 Benefits paid (19,778 ) (22,837 ) Benefit obligation - end of year (1) $ 188,841 $ 189,772 Fair value of plan assets Fair value of plan assets - beginning of year $ — $ — Company contribution 15,958 18,596 Plan participants' contributions 3,820 4,241 Benefits paid (19,778 ) (22,837 ) Fair value of plan assets - end of year $ — $ — Amounts recognized in the Consolidated Balance Sheets Current liability $ (17,712 ) $ (18,127 ) Non-current liability (171,129 ) (171,645 ) Funded status $ (188,841 ) $ (189,772 ) (1) The benefit obligation for the U.S. nonpension postretirement plans was $172 million and $174 million at December 31, 2017 and 2016 , respectively. Pretax amounts recognized in AOCI consist of: 2017 2016 Net actuarial loss $ 43,160 $ 41,625 Prior service cost 1,466 1,763 Total $ 44,626 $ 43,388 |
Schedule of Costs of Retirement Plans | The components of net periodic benefit cost (income) for defined benefit pension plans were as follows: United States Foreign 2017 2016 2015 2017 2016 2015 Service cost $ 132 $ 105 $ 134 $ 2,274 $ 2,148 $ 2,229 Interest cost 68,611 73,699 74,331 18,836 21,886 24,261 Expected return on plan assets (97,656 ) (101,918 ) (104,004 ) (32,242 ) (32,615 ) (35,421 ) Amortization of net transition asset — — — (8 ) (8 ) (9 ) Amortization of prior service credit (60 ) (60 ) (60 ) (71 ) (73 ) (66 ) Amortization of net actuarial loss 28,954 27,220 29,272 8,052 5,264 5,926 Special termination benefits — — — — 52 79 Settlement — 2,109 1,243 — 110 — Net periodic benefit (income) cost $ (19 ) $ 1,155 $ 916 $ (3,159 ) $ (3,236 ) $ (3,001 ) The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows: 2017 2016 2015 Service cost $ 1,727 $ 2,046 $ 2,455 Interest cost 7,100 7,969 8,799 Amortization of prior service cost 297 297 297 Amortization of net actuarial loss 3,600 3,615 7,528 Net periodic benefit cost $ 12,724 $ 13,927 $ 19,079 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1% change in the assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on total of service and interest cost components $ 323 $ (269 ) Effect on postretirement benefit obligation $ 7,672 $ (6,479 ) |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid. Pension Benefits Nonpension Benefits Years ending December 31, 2018 $ 132,626 $ 17,693 2019 129,051 17,163 2020 130,201 16,554 2021 128,257 15,952 2022 128,221 15,347 Thereafter 628,715 63,303 $ 1,277,071 $ 146,012 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Tax, Domestic and Foreign | Income from continuing operations before taxes consisted of the following: Years Ended December 31, 2017 2016 2015 U.S. $ 195,291 $ 169,493 $ 516,233 International 87,698 76,877 94,592 Total $ 282,989 $ 246,370 $ 610,825 |
Components of Income Tax Expense (Benefit) | The provision for income taxes from continuing operations consisted of the following: Years Ended December 31, 2017 2016 2015 U.S. Federal: Current $ 46,836 $ 95,598 $ 115,557 Deferred (48,449 ) (1,559 ) 19,941 (1,613 ) 94,039 135,498 U.S. State and Local: Current 461 9,409 11,243 Deferred 15,460 4,757 16,094 15,921 14,166 27,337 International: Current (1,766 ) 22,872 22,794 Deferred 9,107 742 4,149 7,341 23,614 26,943 Total current 45,531 127,879 149,594 Total deferred (23,882 ) 3,940 40,184 Total provision for income taxes $ 21,649 $ 131,819 $ 189,778 Effective tax rate 7.7 % 53.5 % 31.1 % |
Reconciliation of Effective Income Tax Rate Reconciliation | income taxes computed at the federal statutory rate and our provision for income taxes consist of the following: Years Ended December 31, 2017 2016 2015 Federal statutory provision $ 99,045 $ 86,229 $ 213,789 State and local income taxes 7,327 9,208 17,769 Other impact of foreign operations (31,573 ) (13,806 ) (6,492 ) Tax incentives/credits/exempt income (16,292 ) (10,735 ) (12,130 ) Outside basis differences — — (27,110 ) Goodwill impairments — 58,022 — Remeasurement of U.S. deferred tax liability (129,612 ) — — U.S. tax on unremitted earnings 90,916 — — Other, net 1,838 2,901 3,952 Provision for income taxes $ 21,649 $ 131,819 $ 189,778 |
Components of Deferred Tax Assets and Liabilities | Deferred tax liabilities and assets at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 Deferred tax liabilities: Depreciation $ (77,415 ) $ (93,475 ) Deferred profit (for tax purposes) on sale to finance subsidiary (60,340 ) (98,247 ) Lease revenue and related depreciation (133,908 ) (137,665 ) Intangible assets (106,488 ) (113,128 ) Other (22,468 ) (27,340 ) Gross deferred tax liabilities (400,619 ) (469,855 ) Deferred tax assets: Nonpension postretirement benefits 48,387 71,101 Pension 66,270 105,564 Inventory and equipment capitalization 11,380 13,318 Restructuring charges 12,476 6,980 Long-term incentives 11,544 17,923 Net operating loss 108,006 97,194 Tax credit carry forwards 82,285 53,181 Tax uncertainties gross-up 9,920 18,273 Other 51,436 79,799 Gross deferred tax assets 401,704 463,333 Less: Valuation allowance (178,156 ) (127,095 ) Net deferred tax assets 223,548 336,238 Total deferred taxes, net $ (177,071 ) $ (133,617 ) |
Tax Uncertainties Roll Forward | A reconciliation of the amount of unrecognized tax benefits is as follows: 2017 2016 2015 Balance at beginning of year $ 124,728 $ 139,249 $ 132,495 Increases from prior period positions 528 — 7,637 Decreases from prior period positions (31,470 ) (21,207 ) (16,753 ) Increases from current period positions 5,951 10,867 23,533 Decreases relating to settlements with tax authorities (6,953 ) (1,791 ) (3,831 ) Reductions from lapse of applicable statute of limitations (3,017 ) (2,390 ) (3,832 ) Balance at end of year $ 89,767 $ 124,728 $ 139,249 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable operating leases at December 31, 2017 were as follows: Years ending December 31, 2018 $ 47,820 2019 39,107 2020 30,180 2021 22,266 2022 15,256 Thereafter 63,685 Total minimum lease payments $ 218,314 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in shares of Common Stock outstanding and Treasury Stock: Common Stock Outstanding Treasury Stock Balance at December 31, 2014 201,027,964 122,309,948 Repurchases of common stock (6,476,796 ) 6,476,796 Issuance of common stock 943,686 (943,686 ) Conversions to common stock 26,354 (26,354 ) Balance at December 31, 2015 195,521,208 127,816,704 Repurchases of common stock (10,633,235 ) 10,633,235 Issuance of common stock 767,060 (767,060 ) Conversions to common stock 13,685 (13,685 ) Balance at December 31, 2016 185,668,718 137,669,194 Issuance of common stock 881,480 (881,480 ) Conversions to common stock 53,540 (53,540 ) Balance at December 31, 2017 186,603,738 136,734,174 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 were as follows: Amounts Reclassified from AOCI (a) Years Ended December 31, 2017 2016 2015 Gains (losses) on cash flow hedges Revenue $ (179 ) $ 68 $ 1,082 Cost of sales (32 ) (222 ) 551 Interest expense (2,028 ) (2,028 ) (2,028 ) Total before tax (2,239 ) (2,182 ) (395 ) Tax benefit (872 ) (850 ) (164 ) Net of tax $ (1,367 ) $ (1,332 ) $ (231 ) Gains (losses) on available for sale securities Interest income $ (520 ) $ (1,126 ) $ 1,134 Tax (benefit) provision (201 ) (433 ) 419 Net of tax $ (319 ) $ (693 ) $ 715 Pension and Postretirement Benefit Plans (b) Transition asset $ 8 $ 8 $ 9 Prior service costs (166 ) (164 ) (171 ) Actuarial losses (40,606 ) (38,370 ) (43,969 ) Total before tax (40,764 ) (38,526 ) (44,131 ) Tax benefit (13,936 ) (14,430 ) (15,966 ) Net of tax $ (26,828 ) $ (24,096 ) $ (28,165 ) (a) Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss). (b) Reclassified from accumulated other comprehensive loss into selling, general and administrative expenses. These amounts are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 12 for additional details). |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 were as follows: Cash flow hedges Available-for-sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance January 1, 2015 $ (4,689 ) $ 2,966 $ (786,079 ) $ (58,354 ) $ (846,156 ) Other comprehensive income (loss) before reclassifications (a) 546 (1,715 ) 19,146 (91,436 ) (73,459 ) Amounts reclassified from accumulated other comprehensive income (loss) (a), (b) 231 (715 ) 28,165 3,299 30,980 Net other comprehensive income (loss) 777 (2,430 ) 47,311 (88,137 ) (42,479 ) Balance at December 31, 2015 (3,912 ) 536 (738,768 ) (146,491 ) (888,635 ) Other comprehensive income (loss) before reclassifications (a) 1,095 (1,109 ) (73,141 ) (4,464 ) (77,619 ) Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c) 1,332 693 24,096 — 26,121 Net other comprehensive income (loss) 2,427 (416 ) (49,045 ) (4,464 ) (51,498 ) Balance at December 31, 2016 (1,485 ) 120 (787,813 ) (150,955 ) (940,133 ) Other comprehensive income (loss) before reclassifications (a) (288 ) 1,158 12,185 106,391 119,446 Amounts reclassified from accumulated other comprehensive income (loss) (a), (b), (c) 1,367 319 26,828 — 28,514 Net other comprehensive income (loss) 1,079 1,477 39,013 106,391 147,960 Balance at December 31, 2017 $ (406 ) $ 1,597 $ (748,800 ) $ (44,564 ) $ (792,173 ) (a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (b) See table above for additional details of these reclassifications. (c) Foreign currency item amount represents the recognition of deferred translation upon the sale of certain businesses. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes information about RSUs during 2017 and 2016 : 2017 2016 Shares Weighted average grant date fair value Shares Weighted average grant date fair value Outstanding - beginning of the year 1,609,459 $ 17.50 1,727,214 $ 18.30 Granted 1,995,473 13.24 826,546 17.20 Vested (784,295 ) 19.42 (822,290 ) 19.91 Forfeited (169,584 ) 14.76 (122,011 ) 19.97 Outstanding - end of the year 2,651,053 $ 14.16 1,609,459 $ 17.50 |
Schedule of Share-based Compensation, Performance Stock Units Award Activity | The following table summarizes share information about PSUs during 2017 : Years Ended December 31, 2017 2016 Outstanding - beginning of the year 379,898 1,107,515 Granted 1,073,934 889,599 Performance adjustments (226,154 ) (1,400,425 ) Forfeited (82,653 ) (216,791 ) Outstanding - end of the year 1,145,025 379,898 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes information about stock option activity during 2017 and 2016 : 2017 2016 Shares Per share weighted average exercise prices Shares Per share weighted average exercise prices Options outstanding - beginning of the year 9,122,762 $ 27.13 8,771,600 $ 31.26 Granted 2,553,510 13.16 1,758,760 16.87 Canceled (63,517 ) 20.34 (157,176 ) 19.48 Expired (1,117,716 ) 46.88 (1,250,422 ) 42.62 Options outstanding - end of the year 10,495,039 $ 21.67 9,122,762 $ 27.13 Options exercisable - end of the year 6,690,250 $ 25.57 7,140,772 $ 27.47 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table provides additional information about stock options outstanding and exercisable at December 31, 2017 : Options Outstanding Options Exercisable Range of per share exercise prices Shares Per share weighted-average exercise price Weighted-average remaining contractual life Shares Per share weighted-average exercise price Weighted-average remaining contractual life $13.11 - $14.26 2,653,510 $ 13.17 8.9 years 100,000 $ 13.39 4.9 years $14.27 - $21.89 2,347,595 17.07 7.2 years 1,296,316 17.22 6.4 years $21.90 - $24.77 2,683,597 23.29 2.3 years 2,683,597 23.29 2.3 years $24.78 - $36.96 2,810,337 31.98 1.8 years 2,610,337 32.53 1.3 years 10,495,039 $ 21.67 4.9 years 6,690,250 $ 25.57 2.8 years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The follow table lists the weighted average of assumptions used to calculate the fair value of stock options granted during 2016 and 2015: Years Ended December 31, 2017 2016 Expected dividend yield 5.7 % 4.5 % Expected stock price volatility 29.7 % 29.0 % Risk-free interest rate 2.3 % 1.6 % Expected life 7 years 7 years Weighted-average fair value per option granted $2.00 $2.85 Fair value of options granted $5,107 $5,013 |
Quarterly Financial Data (una46
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Quarterly Financial Information | First Quarter Second Quarter Third Quarter Fourth Quarter Total 2017 Revenue $ 836,640 $ 821,371 $ 842,820 $ 1,049,117 $ 3,549,948 Cost of revenues 374,174 382,565 401,306 564,624 1,722,669 Operating expenses 365,917 384,953 366,549 426,871 1,544,290 Income from continuing operations before income taxes 96,549 53,853 74,965 57,622 282,989 Provision for income taxes 31,416 4,952 17,607 (32,326 ) 21,649 Net income - Pitney Bowes Inc. $ 65,133 $ 48,901 $ 57,358 $ 89,948 $ 261,340 Basic earnings per share (1) $ 0.35 $ 0.26 $ 0.31 $ 0.48 $ 1.40 Diluted earnings per share (1) $ 0.35 $ 0.26 $ 0.31 $ 0.48 $ 1.39 (1) The sum of earnings per share amounts may not equal the totals due to rounding. First Quarter Second Quarter Third Quarter Fourth Quarter Total 2016 Revenue $ 844,589 $ 835,886 $ 839,031 $ 887,069 $ 3,406,575 Cost of revenues 365,241 372,144 376,987 400,306 1,514,678 Operating expenses (1) 379,684 370,504 368,451 526,888 1,645,527 Income from continuing operations before income taxes 99,664 93,238 93,593 (40,125 ) 246,370 Provision for income taxes 37,024 33,394 23,197 38,204 131,819 Income from continuing operations 62,640 59,844 70,396 (78,329 ) 114,551 (Loss) from discontinued operations — (1,660 ) (291 ) (750 ) (2,701 ) Net income before attribution of noncontrolling interests 62,640 58,184 70,105 (79,079 ) 111,850 Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests 4,594 4,594 4,593 5,264 19,045 Net income (loss) - Pitney Bowes Inc. $ 58,046 $ 53,590 $ 65,512 $ (84,343 ) $ 92,805 Amounts attributable to common stockholders: Income from continuing operations $ 58,046 $ 55,250 $ 65,803 $ (83,593 ) $ 95,506 Loss from discontinued operations — (1,660 ) (291 ) (750 ) (2,701 ) Net income - Pitney Bowes Inc. $ 58,046 $ 53,590 $ 65,512 $ (84,343 ) $ 92,805 Basic earnings per share attributable to common stockholders (2) : Continuing operations $ 0.30 $ 0.29 $ 0.35 $ (0.45 ) $ 0.51 Discontinued operations — (0.01 ) — — (0.01 ) Net income - Pitney Bowes Inc. $ 0.30 $ 0.28 $ 0.35 $ (0.45 ) $ 0.49 Diluted earnings per share attributable to common stockholders (2): Continuing operations $ 0.30 $ 0.29 $ 0.35 $ (0.45 ) $ 0.51 Discontinued operations — (0.01 ) — — (0.01 ) Net income - Pitney Bowes Inc. $ 0.30 $ 0.28 $ 0.35 $ (0.45 ) $ 0.49 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rentals Revenue | |||
Initial direct costs included in rental property and equipment | $ 10,000 | $ 11,000 | |
Amortization of initial direct costs | $ 5,000 | 7,000 | $ 8,000 |
Deferred Marketing Costs | |||
Capitalization period for deferred marketing costs | 8 years | ||
Deferred marketing costs included in other assets | $ 36,000 | 38,000 | |
Deferred costs expensed | 13,000 | 15,000 | 18,000 |
New Accounting Pronouncements | |||
Net cash provided by operating activities | (495,813) | (496,122) | (522,989) |
Net cash used in financing activities | (367,747) | 229,529 | 578,658 |
Accounting Standards Update 2016-15 | |||
New Accounting Pronouncements | |||
Early extinguishment of debt | $ 7,000 | ||
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements | |||
Net cash provided by operating activities | 5,000 | 8,000 | |
Net cash used in financing activities | $ 5,000 | $ 8,000 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible assets, estimated useful lives | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible assets, estimated useful lives | 15 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 50 years | ||
Building improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Building improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 12 years | ||
Rental equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 4 years | ||
Rental equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 6 years | ||
Computer equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Computer equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Software development costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Software development costs | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Segment Information (Revenues)
Segment Information (Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,049,117 | $ 842,820 | $ 821,371 | $ 836,640 | $ 887,069 | $ 839,031 | $ 835,886 | $ 844,589 | $ 3,549,948 | $ 3,406,575 | $ 3,578,060 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,738,711 | 2,589,535 | 2,681,285 | ||||||||
Outside United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 811,237 | 817,040 | 896,775 | ||||||||
Small & Medium Business Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,740,231 | 1,838,736 | 1,979,888 | ||||||||
Small & Medium Business Solutions | North America Mailing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,356,561 | 1,427,094 | 1,530,060 | ||||||||
Small & Medium Business Solutions | International Mailing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 383,670 | 411,642 | 449,828 | ||||||||
Enterprise Business Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 905,095 | 880,285 | 894,790 | ||||||||
Enterprise Business Solutions | Production Mail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 407,194 | 404,703 | 421,178 | ||||||||
Enterprise Business Solutions | Presort Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 497,901 | 475,582 | 473,612 | ||||||||
Digital Commerce Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 904,622 | 687,554 | 648,575 | ||||||||
Digital Commerce Solutions | Software Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 352,380 | 348,234 | 385,908 | ||||||||
Digital Commerce Solutions | Global Ecommerce | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 552,242 | 339,320 | 262,667 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 0 | $ 0 | $ 54,807 |
Segment Information (EBIT) (Det
Segment Information (EBIT) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciling items: | |||||||||||
Goodwill impairment | $ (171,000) | $ 0 | $ (171,092) | $ 0 | |||||||
Restructuring charges and asset impairments, net | (59,431) | (63,296) | (25,782) | ||||||||
Gain (Loss) on Disposition of Intangible Assets | 6,085 | 0 | 0 | ||||||||
Other (expense) income, net | (3,856) | (536) | 94,838 | ||||||||
Income from continuing operations before income taxes | 57,622 | $ 74,965 | $ 53,853 | $ 96,549 | $ (40,125) | $ 93,593 | $ 93,238 | $ 99,664 | 282,989 | 246,370 | 610,825 |
Provision for income taxes | $ (32,326) | $ 17,607 | $ 4,952 | $ 31,416 | 38,204 | 23,197 | 33,394 | 37,024 | 21,649 | 131,819 | 189,778 |
(Loss) income from discontinued operations | (750) | (291) | (1,660) | 0 | 0 | (2,701) | 5,271 | ||||
Net income | $ (79,079) | $ 70,105 | $ 58,184 | $ 62,640 | 261,340 | 111,850 | 426,318 | ||||
International Mailing | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
North America Mailing | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Production Mail | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Presort Services | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Software Solutions | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | (171,092) | |||||||||
Global Ecommerce | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Small & Medium Business Solutions | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Small & Medium Business Solutions | International Mailing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 48,164 | 44,806 | 49,071 | ||||||||
Small & Medium Business Solutions | North America Mailing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 497,809 | 592,978 | 663,031 | ||||||||
Enterprise Business Solutions | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | 0 | |||||||||
Enterprise Business Solutions | Production Mail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 50,513 | 54,061 | 48,254 | ||||||||
Enterprise Business Solutions | Presort Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 97,506 | 95,258 | 104,655 | ||||||||
Digital Commerce Solutions | |||||||||||
Reconciling items: | |||||||||||
Goodwill impairment | 0 | (171,092) | |||||||||
Digital Commerce Solutions | Software Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 41,635 | 30,159 | 48,531 | ||||||||
Digital Commerce Solutions | Global Ecommerce | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | (17,899) | 3,043 | 5,110 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 717,728 | 820,305 | 929,221 | ||||||||
Operating Segments | Small & Medium Business Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 545,973 | 637,784 | 712,102 | ||||||||
Operating Segments | Enterprise Business Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 148,019 | 149,319 | 152,909 | ||||||||
Operating Segments | Digital Commerce Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 23,736 | 33,202 | 53,641 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBIT | 0 | 0 | 10,569 | ||||||||
Reconciling Items | |||||||||||
Reconciling items: | |||||||||||
Interest, net | (164,162) | (144,211) | (159,374) | ||||||||
Unallocated corporate expenses | (204,211) | (189,215) | (213,095) | ||||||||
Goodwill impairment | 0 | (171,092) | 0 | ||||||||
Restructuring charges and asset impairments, net | (59,431) | (63,296) | (25,782) | ||||||||
Gain (Loss) on Disposition of Intangible Assets | 6,085 | 0 | 0 | ||||||||
Acquisition/disposition related expenses | (9,164) | (5,585) | (14,983) | ||||||||
Other (expense) income, net | $ (3,856) | $ (536) | $ 94,838 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 182,336 | $ 178,486 | $ 173,312 |
North America Mailing | Small & Medium Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 64,803 | 60,066 | 58,141 |
International Mailing | Small & Medium Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 18,562 | 19,431 | 23,262 |
Production Mail | Enterprise Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,686 | 4,421 | 4,075 |
Presort Services | Enterprise Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 26,541 | 27,929 | 27,305 |
Software Solutions | Digital Commerce Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 8,978 | 14,621 | 18,151 |
Global Ecommerce | Digital Commerce Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 36,662 | 30,607 | 21,025 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 158,232 | 157,075 | 154,016 |
Operating Segments | Small & Medium Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 83,365 | 79,497 | 81,403 |
Operating Segments | Enterprise Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 29,227 | 32,350 | 31,380 |
Operating Segments | Digital Commerce Solutions | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 45,640 | 45,228 | 39,176 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 0 | 0 | 2,057 |
Unallocated amount | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 24,104 | $ 21,411 | $ 19,296 |
Segment Information (Capital Ex
Segment Information (Capital Expenditures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 170,990 | $ 160,831 | $ 166,746 |
Small & Medium Business Solutions | North America Mailing | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 69,131 | 83,547 | 60,621 |
Small & Medium Business Solutions | International Mailing | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 11,982 | 3,163 | 11,196 |
Enterprise Business Solutions | Production Mail | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 2,893 | 1,599 | 3,418 |
Enterprise Business Solutions | Presort Services | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 20,860 | 17,537 | 17,096 |
Digital Commerce Solutions | Software Solutions | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 9,181 | 4,617 | 1,688 |
Digital Commerce Solutions | Global Ecommerce | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 26,810 | 15,647 | 17,321 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 140,857 | 126,110 | 112,197 |
Operating Segments | Small & Medium Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 81,113 | 86,710 | 71,817 |
Operating Segments | Enterprise Business Solutions | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 23,753 | 19,136 | 20,514 |
Operating Segments | Digital Commerce Solutions | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 35,991 | 20,264 | 19,009 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 0 | 0 | 857 |
Unallocated amount | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 30,133 | $ 34,721 | $ 54,549 |
Segment Information (Assets) (D
Segment Information (Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Assets | $ 6,678,715 | $ 5,837,133 | $ 6,123,132 | |
Cash and cash equivalents | 1,009,021 | 764,522 | 640,190 | $ 1,043,439 |
Short-term investments | 48,988 | 38,448 | ||
Identifiable long-lived assets | 564,314 | 502,657 | 507,603 | |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable long-lived assets | 506,064 | 441,443 | 434,557 | |
Outside United States | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable long-lived assets | 58,250 | 61,214 | 73,046 | |
Small & Medium Business Solutions | North America Mailing | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 1,959,206 | 2,066,480 | 2,562,816 | |
Small & Medium Business Solutions | International Mailing | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 552,570 | 532,647 | 594,564 | |
Enterprise Business Solutions | Production Mail | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 260,977 | 239,358 | 244,156 | |
Enterprise Business Solutions | Presort Services | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 387,701 | 373,443 | 374,647 | |
Digital Commerce Solutions | Software Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 658,737 | 645,349 | 858,308 | |
Digital Commerce Solutions | Global Ecommerce | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 1,016,045 | 449,363 | 438,917 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 4,835,236 | 4,306,640 | 5,073,408 | |
Operating Segments | Small & Medium Business Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 2,511,776 | 2,599,127 | 3,157,380 | |
Operating Segments | Enterprise Business Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 648,678 | 612,801 | 618,803 | |
Operating Segments | Digital Commerce Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 1,674,782 | 1,094,712 | 1,297,225 | |
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 1,009,021 | 764,522 | 640,190 | |
Short-term investments | 48,988 | 38,448 | 127,388 | |
Other corporate assets | $ 785,470 | $ 727,523 | $ 282,146 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Numerator: | ||||||||||||||
Net income from continuing operations | $ (83,593) | $ 65,803 | $ 55,250 | $ 58,046 | $ 261,340 | $ 95,506 | $ 402,672 | |||||||
(Loss) income from discontinued operations | $ (750) | $ (291) | $ (1,660) | $ 0 | 0 | (2,701) | 5,271 | |||||||
Net income (numerator for diluted EPS) | 261,340 | 92,805 | 407,943 | |||||||||||
Less: Preference stock dividend | 36 | 38 | 41 | |||||||||||
Income attributable to common stockholders (numerator for basic EPS) | $ 261,304 | $ 92,767 | $ 407,902 | |||||||||||
Denominator: | ||||||||||||||
Weighted-average shares used in basic EPS (in shares) | 186,332 | 187,945 | 199,835 | |||||||||||
Effect of dilutive shares (in shares) | 1,103 | 1,030 | 1,110 | |||||||||||
Weighted-average shares used in diluted EPS (in shares) | 187,435 | 188,975 | 200,945 | |||||||||||
Basic earnings per share: | ||||||||||||||
Continuing operations (in dollars per share) | $ (0.45) | $ 0.35 | $ 0.29 | $ 0.30 | $ 1.40 | [1] | $ 0.51 | [1] | $ 2.01 | [1] | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | 0 | 0 | [1] | (0.01) | [1] | 0.03 | [1] | ||||
Net income - Pitney Bowes Inc. (in dollars per share) | $ 0.48 | $ 0.31 | $ 0.26 | $ 0.35 | (0.45) | 0.35 | 0.28 | 0.30 | 1.40 | [1] | 0.49 | [1] | 2.04 | [1] |
Diluted earnings per share: | ||||||||||||||
Continuing operations (in dollars per share) | (0.45) | 0.35 | 0.29 | 0.30 | 1.39 | [1] | 0.51 | [1] | 2 | [1] | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | 0 | 0 | [1] | (0.01) | [1] | 0.03 | [1] | ||||
Net income - Pitney Bowes Inc. (in dollars per share) | $ 0.48 | $ 0.31 | $ 0.26 | $ 0.35 | $ (0.45) | $ 0.35 | $ 0.28 | $ 0.30 | $ 1.39 | [1] | $ 0.49 | [1] | $ 2.03 | [1] |
Anti-dilutive options excluded from diluted earnings per share (in shares) | 10,267 | 8,126 | 8,079 | |||||||||||
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 30,166 | $ 28,541 |
Work in process | 4,981 | 6,498 |
Supplies and service parts | 45,366 | 45,152 |
Finished products | 21,765 | 24,678 |
Inventory at FIFO cost, net | 102,278 | 104,869 |
Excess of FIFO cost over LIFO cost | (12,599) | (12,143) |
Total inventory, net | $ 89,679 | $ 92,726 |
Finance Assets (Finance Receiva
Finance Assets (Finance Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Net investment in finance receivables | $ 1,480,090 | $ 1,567,157 |
North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Net investment in finance receivables | 1,205,476 | 1,311,718 |
International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Net investment in finance receivables | 274,614 | 255,439 |
Sales-type lease receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 1,315,608 | 1,361,315 |
Unguaranteed residual values | 88,295 | 103,845 |
Unearned income | (279,045) | (284,366) |
Allowance for credit losses | (10,515) | (10,894) |
Net investment in receivables | 1,114,343 | 1,169,900 |
Sales-type lease receivables | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 1,023,549 | 1,088,053 |
Unguaranteed residual values | 74,093 | 90,190 |
Unearned income | (216,720) | (223,908) |
Allowance for credit losses | (7,721) | (8,247) |
Net investment in receivables | 873,201 | 946,088 |
Sales-type lease receivables | International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 292,059 | 273,262 |
Unguaranteed residual values | 14,202 | 13,655 |
Unearned income | (62,325) | (60,458) |
Allowance for credit losses | (2,794) | (2,647) |
Net investment in receivables | 241,142 | 223,812 |
Loan receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 373,865 | 406,863 |
Allowance for credit losses | (8,118) | (9,606) |
Net investment in receivables | 365,747 | 397,257 |
Loan receivables | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 339,373 | 374,147 |
Allowance for credit losses | (7,098) | (8,517) |
Net investment in receivables | 332,275 | 365,630 |
Loan receivables | International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Receivables | 34,492 | 32,716 |
Allowance for credit losses | (1,020) | (1,089) |
Net investment in receivables | $ 33,472 | $ 31,627 |
Minimum | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Lease period | 3 years | |
Maximum | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Lease period | 5 years |
Finance Assets (Minimum Payment
Finance Assets (Minimum Payments) (Details) - Sales-type lease receivables $ in Thousands | Dec. 31, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,018 | $ 644,690 |
2,019 | 336,849 |
2,020 | 203,784 |
2,021 | 97,750 |
2,022 | 27,444 |
Thereafter | 5,091 |
Total | 1,315,608 |
North America | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,018 | 513,886 |
2,019 | 262,303 |
2,020 | 154,581 |
2,021 | 70,307 |
2,022 | 18,340 |
Thereafter | 4,132 |
Total | 1,023,549 |
International | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,018 | 130,804 |
2,019 | 74,546 |
2,020 | 49,203 |
2,021 | 27,443 |
2,022 | 9,104 |
Thereafter | 959 |
Total | $ 292,059 |
Finance Assets (Allowance for C
Finance Assets (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Credit Losses | |||
Balance at | $ 20,500 | $ 21,690 | $ 28,004 |
Amounts charged to expense | 15,607 | 13,371 | 11,388 |
Accounts written off | (17,474) | (14,561) | (17,702) |
Balance at | 18,633 | 20,500 | 21,690 |
Sales-type lease receivables | North America | |||
Allowance for Credit Losses | |||
Balance at | 8,247 | 6,606 | 10,125 |
Amounts charged to expense | 7,544 | 5,136 | 1,189 |
Accounts written off | (8,070) | (3,495) | (4,708) |
Balance at | 7,721 | 8,247 | 6,606 |
Sales-type lease receivables | International | |||
Allowance for Credit Losses | |||
Balance at | 2,647 | 3,542 | 5,023 |
Amounts charged to expense | 1,280 | 1,161 | 890 |
Accounts written off | (1,133) | (2,056) | (2,371) |
Balance at | 2,794 | 2,647 | 3,542 |
Loan receivables | North America | |||
Allowance for Credit Losses | |||
Balance at | 8,517 | 10,024 | 11,068 |
Amounts charged to expense | 6,273 | 6,238 | 8,286 |
Accounts written off | (7,692) | (7,745) | (9,330) |
Balance at | 7,098 | 8,517 | 10,024 |
Loan receivables | International | |||
Allowance for Credit Losses | |||
Balance at | 1,089 | 1,518 | 1,788 |
Amounts charged to expense | 510 | 836 | 1,023 |
Accounts written off | (579) | (1,265) | (1,293) |
Balance at | $ 1,020 | $ 1,089 | $ 1,518 |
Finance Assets (Aging of Receiv
Finance Assets (Aging of Receivables) (Details) - USD ($) $ in Thousands | Feb. 15, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 1,689,473 | $ 1,768,178 | |
1 to 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 1,621,914 | 1,693,706 | |
Greater Than 90 days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 67,559 | 74,472 | |
Past due amounts greater than 90 days - Still accruing interest | 12,545 | 9,803 | |
Past due amounts greater than 90 days - Not accruing interest | 55,014 | 64,669 | |
North America | Sales-type lease receivables | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,023,549 | 1,088,053 | |
North America | Sales-type lease receivables | Subsequent Event | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Proceeds from collection of finance receivables | $ 28,000 | ||
North America | Sales-type lease receivables | 1 to 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 971,002 | 1,025,313 | |
North America | Sales-type lease receivables | Greater Than 90 days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 52,547 | 62,740 | |
Past due amounts greater than 90 days - Still accruing interest | 10,807 | 8,831 | |
Past due amounts greater than 90 days - Not accruing interest | 41,740 | 53,909 | |
North America | Loan receivables | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 339,373 | 374,147 | |
North America | Loan receivables | 1 to 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 330,503 | 366,726 | |
North America | Loan receivables | Greater Than 90 days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 8,870 | 7,421 | |
Past due amounts greater than 90 days - Still accruing interest | 0 | 0 | |
Past due amounts greater than 90 days - Not accruing interest | 8,870 | 7,421 | |
International | Sales-type lease receivables | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 292,059 | 273,262 | |
International | Sales-type lease receivables | 1 to 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 286,170 | 269,247 | |
International | Sales-type lease receivables | Greater Than 90 days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 5,889 | 4,015 | |
Past due amounts greater than 90 days - Still accruing interest | 1,738 | 972 | |
Past due amounts greater than 90 days - Not accruing interest | 4,151 | 3,043 | |
International | Loan receivables | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 34,492 | 32,716 | |
International | Loan receivables | 1 to 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 34,239 | 32,420 | |
International | Loan receivables | Greater Than 90 days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Aging of receivables | 253 | 296 | |
Past due amounts greater than 90 days - Still accruing interest | 0 | 0 | |
Past due amounts greater than 90 days - Not accruing interest | $ 253 | $ 296 |
Finance Assets (Credit Quality)
Finance Assets (Credit Quality) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales-type lease receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 1,315,608 | $ 1,361,315 |
Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 1,023,549 | 1,088,053 |
Loan receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 373,865 | 406,863 |
Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 339,373 | 374,147 |
Low | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Low | Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 819,776 | 879,823 |
Low | Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 262,646 | 296,598 |
Medium | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate percentage of portfolio | 40.00% | |
Medium | Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 148,000 | 135,953 |
Medium | Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 56,744 | 53,647 |
High | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
High | Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 21,728 | 22,600 |
High | Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 6,791 | 7,216 |
Not Scored | Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 34,045 | 49,677 |
Not Scored | Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 13,192 | $ 16,686 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,145,034 | $ 998,331 | |
Accumulated depreciation | (765,990) | (683,728) | |
Property, plant and equipment, net | 379,044 | 314,603 | |
Rental property and equipment | 394,627 | 400,913 | |
Accumulated depreciation | (208,886) | (212,859) | |
Rental property and equipment, net | 185,741 | 188,054 | |
Depreciation expense | 149,000 | 140,000 | $ 136,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 9,333 | 9,908 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 207,024 | 185,431 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 224,753 | 192,395 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 703,924 | $ 610,597 |
Acquisitions, Divestiture, In61
Acquisitions, Divestiture, Intangible Assets and Goodwill (Acquisitions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash acquired | $ 482,853 | $ 37,842 | $ 393,695 | ||
Allocation of the purchase price | |||||
Goodwill | $ 1,952,444 | 1,952,444 | 1,571,335 | 1,745,957 | |
Intangible assets acquired | |||||
Amortization period | 34,000 | 38,000 | 37,000 | ||
Goodwill, Impairment Loss | $ 171,000 | 0 | 171,092 | $ 0 | |
Newgistics | |||||
Allocation of the purchase price | |||||
Accounts receivable | $ 36,195 | ||||
Other current assets | 16,051 | ||||
Fixed assets | 26,933 | ||||
Goodwill | 330,272 | ||||
Intangible assets | 135,640 | ||||
Accounts payable and other current liabilities | (21,500) | ||||
Deferred taxes, net | (52,363) | ||||
Other assets and liabilities, net | (688) | ||||
Purchase price | 470,540 | ||||
Intangible assets acquired | |||||
Value | 135,640 | ||||
Revenue | 140,000 | ||||
Pro forma revenues | $ 341,000 | $ 481,000 | |||
Newgistics | Customer relationships | |||||
Intangible assets acquired | |||||
Value | $ 111,600 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Newgistics | Developed technology | |||||
Intangible assets acquired | |||||
Value | $ 19,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||
Newgistics | Tradenames | |||||
Intangible assets acquired | |||||
Value | $ 4,300 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Newgistics | Other | |||||
Intangible assets acquired | |||||
Value | $ 740 | ||||
Newgistics | Other | Minimum | |||||
Intangible assets acquired | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||
Newgistics | Other | Maximum | |||||
Intangible assets acquired | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Acquisitions, Divestiture, In62
Acquisitions, Divestiture, Intangible Assets and Goodwill (Divestiture) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Proceeds from sale of businesses, net of cash transferred | $ 292,000 | $ 0 | $ 0 | $ 289,211 |
Gain on sale of businesses | $ 111,000 | $ 0 | $ (5,786) | $ 105,826 |
Acquisitions, Divestiture, In63
Acquisitions, Divestiture, Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite lived intangible assets | |||
Gross Carrying Amount | $ 741,795 | $ 631,288 | |
Accumulated Amortization | (469,609) | (466,116) | |
Net Carrying Amount | 272,186 | 165,172 | |
Amortization period | 34,000 | 38,000 | $ 37,000 |
Customer relationships | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 526,149 | 445,039 | |
Accumulated Amortization | (292,500) | (300,906) | |
Net Carrying Amount | 233,649 | 144,133 | |
Software & technology | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 173,141 | 150,037 | |
Accumulated Amortization | (144,742) | (136,508) | |
Net Carrying Amount | 28,399 | 13,529 | |
Trademarks & other | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 42,505 | 36,212 | |
Accumulated Amortization | (32,367) | (28,702) | |
Net Carrying Amount | $ 10,138 | $ 7,510 |
Acquisitions, Divestiture, In64
Acquisitions, Divestiture, Intangible Assets and Goodwill (Future Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 42,564 | |
2,019 | 38,838 | |
2,020 | 34,251 | |
2,021 | 30,631 | |
2,022 | 29,223 | |
Thereafter | 96,679 | |
Net Carrying Amount | $ 272,186 | $ 165,172 |
Acquisitions, Divestiture, In65
Acquisitions, Divestiture, Intangible Assets and Goodwill (Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | $ 1,742,427 | $ 1,745,957 | ||||
Accumulated impairment | (171,092) | 0 | ||||
Goodwill | $ 1,952,444 | $ 1,571,335 | $ 1,745,957 | $ 1,745,957 | 1,571,335 | 1,745,957 |
Goodwill | ||||||
Balance at | 1,571,335 | 1,745,957 | ||||
Acquisition | 338,163 | 21,329 | ||||
Impairment | (171,000) | 0 | (171,092) | 0 | ||
Other | 42,946 | (24,859) | ||||
Balance at | 1,952,444 | 1,952,444 | 1,571,335 | 1,745,957 | ||
North America Mailing | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 354,000 | 357,215 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 368,905 | 354,000 | 357,215 | 357,215 | 354,000 | 357,215 |
Goodwill | ||||||
Balance at | 354,000 | 357,215 | ||||
Acquisition | 0 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 14,905 | (3,215) | ||||
Balance at | 368,905 | 368,905 | 354,000 | 357,215 | ||
International Mailing | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 145,566 | 148,351 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 158,203 | 145,566 | 148,351 | 148,351 | 145,566 | 148,351 |
Goodwill | ||||||
Balance at | 145,566 | 148,351 | ||||
Acquisition | 0 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 12,637 | (2,785) | ||||
Balance at | 158,203 | 158,203 | 145,566 | 148,351 | ||
Production Mail | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 101,099 | 105,757 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 107,489 | 101,099 | 105,757 | 105,757 | 101,099 | 105,757 |
Goodwill | ||||||
Balance at | 101,099 | 105,757 | ||||
Acquisition | 0 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 6,390 | (4,658) | ||||
Balance at | 107,489 | 107,489 | 101,099 | 105,757 | ||
Presort Services | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 196,890 | 196,890 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 204,781 | 196,890 | 196,890 | 196,890 | 196,890 | 196,890 |
Goodwill | ||||||
Balance at | 196,890 | 196,890 | ||||
Acquisition | 7,891 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 0 | 0 | ||||
Balance at | 204,781 | 204,781 | 196,890 | 196,890 | ||
Software Solutions | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 672,683 | 674,976 | ||||
Accumulated impairment | (171,092) | 0 | ||||
Goodwill | 510,605 | 501,591 | 674,976 | 674,976 | 501,591 | 674,976 |
Goodwill | ||||||
Balance at | 501,591 | 674,976 | ||||
Acquisition | 0 | 11,908 | ||||
Impairment | 0 | (171,092) | ||||
Other | 9,014 | (14,201) | ||||
Balance at | 510,605 | 510,605 | 501,591 | 674,976 | ||
Global Ecommerce | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 272,189 | 262,768 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 602,461 | 272,189 | 262,768 | 262,768 | 272,189 | 262,768 |
Goodwill | ||||||
Balance at | 272,189 | 262,768 | ||||
Acquisition | 330,272 | 9,421 | ||||
Impairment | 0 | 0 | ||||
Other | 0 | 0 | ||||
Balance at | 602,461 | 602,461 | 272,189 | 262,768 | ||
Small & Medium Business Solutions | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 499,566 | 505,566 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 527,108 | 499,566 | 505,566 | 505,566 | 499,566 | 505,566 |
Goodwill | ||||||
Balance at | 499,566 | 505,566 | ||||
Acquisition | 0 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 27,542 | (6,000) | ||||
Balance at | 527,108 | 527,108 | 499,566 | 505,566 | ||
Enterprise Business Solutions | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 297,989 | 302,647 | ||||
Accumulated impairment | 0 | 0 | ||||
Goodwill | 312,270 | 297,989 | 302,647 | 302,647 | 297,989 | 302,647 |
Goodwill | ||||||
Balance at | 297,989 | 302,647 | ||||
Acquisition | 7,891 | 0 | ||||
Impairment | 0 | 0 | ||||
Other | 6,390 | (4,658) | ||||
Balance at | 312,270 | 312,270 | 297,989 | 302,647 | ||
Digital Commerce Solutions | ||||||
Goodwill [Line Items] | ||||||
Gross value before accumulated impairment | 944,872 | 937,744 | ||||
Accumulated impairment | (171,092) | 0 | ||||
Goodwill | 1,113,066 | 773,780 | 937,744 | 937,744 | $ 773,780 | $ 937,744 |
Goodwill | ||||||
Balance at | 773,780 | 937,744 | ||||
Acquisition | 330,272 | 21,329 | ||||
Impairment | 0 | (171,092) | ||||
Other | 9,014 | (14,201) | ||||
Balance at | $ 1,113,066 | $ 1,113,066 | $ 773,780 | $ 937,744 |
Fair Value Measurements and D66
Fair Value Measurements and Derivative Instruments (Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | $ 1,102,556 | $ 747,177 |
Liabilities | (335) | (3,717) |
Money market funds / commercial paper | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 685,917 | 331,646 |
Equity securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 40,717 | 24,571 |
Commingled fixed income securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 6,085 | 23,668 |
Government and related securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 134,628 | 136,180 |
Corporate debt securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 75,109 | 69,891 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 158,202 | 158,996 |
Interest rate swap | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 1,776 | 1,588 |
Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 122 | 637 |
Liabilities | (335) | (3,717) |
Level 1 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 260,959 | 232,829 |
Liabilities | 0 | 0 |
Level 1 | Money market funds / commercial paper | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 143,349 | 114,471 |
Level 1 | Equity securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Commingled fixed income securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 1,569 | 1,536 |
Level 1 | Government and related securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 116,041 | 116,822 |
Level 1 | Corporate debt securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Mortgage-backed / asset-backed securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Interest rate swap | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 841,597 | 514,348 |
Liabilities | (335) | (3,717) |
Level 2 | Money market funds / commercial paper | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 542,568 | 217,175 |
Level 2 | Equity securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 40,717 | 24,571 |
Level 2 | Commingled fixed income securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 4,516 | 22,132 |
Level 2 | Government and related securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 18,587 | 19,358 |
Level 2 | Corporate debt securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 75,109 | 69,891 |
Level 2 | Mortgage-backed / asset-backed securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 158,202 | 158,996 |
Level 2 | Interest rate swap | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 1,776 | 1,588 |
Level 2 | Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 122 | 637 |
Liabilities | (335) | (3,717) |
Level 3 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Money market funds / commercial paper | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Equity securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Commingled fixed income securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Government and related securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Corporate debt securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Mortgage-backed / asset-backed securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Interest rate swap | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Fair Value Measurements and D67
Fair Value Measurements and Derivative Instruments (Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 365,776 | $ 366,572 |
Gross unrealized gains | 5,056 | 4,317 |
Gross unrealized losses | (2,999) | (4,286) |
Estimated fair value | 367,833 | 366,603 |
Investment securities at a loss position for more than 12 months, aggregate unrealized holding losses, less than $1million for 2016 | 2,000 | 1,000 |
Investment securities at a loss position for more than 12 months, estimated fair value | 116,000 | 12,000 |
Investment securities at a loss position for less than 12 months, unrealized holding losses | 1,000 | 4,000 |
Investment securities at a loss position for less than 12 months, estimated fair value | 91,000 | 171,000 |
Government and related securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 131,872 | 136,316 |
Gross unrealized gains | 1,984 | 1,571 |
Gross unrealized losses | (1,090) | (1,707) |
Estimated fair value | 132,766 | 136,180 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 73,612 | 69,376 |
Gross unrealized gains | 1,724 | 1,180 |
Gross unrealized losses | (227) | (665) |
Estimated fair value | 75,109 | 69,891 |
Commingled fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,796 | 1,568 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (40) | (32) |
Estimated fair value | 1,756 | 1,536 |
Mortgage-backed / asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 158,496 | 159,312 |
Gross unrealized gains | 1,348 | 1,566 |
Gross unrealized losses | (1,642) | (1,882) |
Estimated fair value | $ 158,202 | $ 158,996 |
Fair Value Measurements and D68
Fair Value Measurements and Derivative Instruments (Reconciliation) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Amortized cost | |
Within 1 year | $ 38,624 |
After 1 year through 5 years | 111,756 |
After 5 years through 10 years | 68,599 |
After 10 years | 146,797 |
Total | 365,776 |
Estimated fair value | |
Within 1 year | 38,414 |
After 1 year through 5 years | 111,704 |
After 5 years through 10 years | 69,154 |
After 10 years | 148,561 |
Total | $ 367,833 |
Fair Value Measurements and D69
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Derivative [Line Items] | |||
Total net derivative liability | $ 1,563,000 | $ (1,492,000) | |
Total derivative assets | |||
Derivative [Line Items] | |||
Derivative asset | 1,898,000 | 2,225,000 | |
Total derivative liabilities | |||
Derivative [Line Items] | |||
Derivative liability | (335,000) | (3,717,000) | |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments | |||
Derivative [Line Items] | |||
Derivative asset | 57,000 | 487,000 | |
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities | |||
Derivative [Line Items] | |||
Derivative liability | (144,000) | (136,000) | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments | |||
Derivative [Line Items] | |||
Derivative asset | 65,000 | 150,000 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities | |||
Derivative [Line Items] | |||
Derivative liability | (191,000) | (3,581,000) | |
Interest rate swap | Derivatives designated as hedging instruments | Other non-current assets | |||
Derivative [Line Items] | |||
Derivative asset | 1,776,000 | 1,588,000 | |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Total notional amount of outstanding contracts | $ 10,000,000 | $ 13,000,000 | |
Cash Flow Hedging | Interest rate contract | |||
Derivative [Line Items] | |||
Total notional amount of outstanding contracts | $ 300,000,000 | ||
Fixed interest rate | 0.8826% |
Fair Value Measurements and D70
Fair Value Measurements and Derivative Instruments (Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | $ (211) | $ 154 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | (650) | 496 |
Interest rate swap | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | 1,776 | 1,588 |
Revenue | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (179) | (68) |
Cost of sales | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (32) | 222 |
Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 0 | 0 |
Selling, general and administrative expense | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in Earnings | $ (2,203) | $ (2,382) |
Fair Value Measurements and D71
Fair Value Measurements and Derivative Instruments (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 3,830,335 | $ 3,364,890 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 3,718,986 | $ 3,412,581 |
Supplemental Balance Sheet In72
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other assets: | ||
Long-term investments | $ 435,612 | $ 425,732 |
Other | 105,184 | 99,041 |
Total | 540,796 | 524,773 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 302,101 | 293,538 |
Customer deposits | 693,004 | 688,772 |
Employee related liabilities | 260,116 | 205,901 |
Other | 231,520 | 190,611 |
Total | $ 1,486,741 | $ 1,378,822 |
Restructuring Charges and Ass73
Restructuring Charges and Asset Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve | |||
Balance at | $ 28,657 | $ 47,422 | |
Expenses, net | 55,867 | 46,165 | |
Cash payments | (40,804) | (64,930) | $ (62,086) |
Balance at | $ 43,720 | 28,657 | 47,422 |
Restructuring reserve, payment period | 24 months | ||
Asset impairment charges | $ 4,000 | ||
Minimum | |||
Restructuring Reserve | |||
Restructuring reserve, payment period | 12 months | ||
Maximum | |||
Restructuring Reserve | |||
Restructuring reserve, payment period | 24 months | ||
Severance and benefits costs | |||
Restructuring Reserve | |||
Balance at | $ 28,376 | 43,700 | |
Expenses, net | 53,322 | 44,510 | |
Cash payments | (39,547) | (59,834) | |
Balance at | 42,151 | 28,376 | 43,700 |
Other exit costs | |||
Restructuring Reserve | |||
Balance at | 281 | 3,722 | |
Expenses, net | 2,545 | 1,655 | |
Cash payments | (1,257) | (5,096) | |
Balance at | $ 1,569 | 281 | $ 3,722 |
Facility closing | |||
Restructuring Reserve | |||
Asset impairment charges | 5,000 | ||
Loss on sale of facility | $ 5,000 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | May 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 3,866,317 | $ 3,380,827 | ||
Less: unamortized costs, net | 35,982 | 15,937 | ||
Total debt | 3,830,335 | 3,364,890 | ||
Less: current portion long-term debt | 271,057 | 614,485 | ||
Long-term debt | $ 3,559,278 | 2,750,405 | ||
Notes due | Notes due September 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.75% | |||
Principal amount | $ 0 | 385,109 | ||
Notes due | Notes due March 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.60% | |||
Principal amount | $ 250,000 | 250,000 | ||
Notes due | Notes due May 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Principal amount | $ 0 | 350,000 | ||
Notes due | Notes due March 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.25% | |||
Principal amount | $ 300,000 | 300,000 | ||
Notes due | Notes due September 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.625% | |||
Principal amount | $ 300,000 | $ 300,000 | 0 | |
Notes due | Notes due October 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.625% | |||
Principal amount | $ 600,000 | 600,000 | ||
Notes due | Notes due May 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.125% | 3.875% | ||
Principal amount | $ 400,000 | 0 | ||
Notes due | Notes due April 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.70% | |||
Principal amount | $ 400,000 | $ 400,000 | 0 | |
Notes due | Notes due March 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.625% | |||
Principal amount | $ 500,000 | 500,000 | ||
Notes due | Notes due January 2037 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.25% | |||
Principal amount | $ 35,841 | 115,041 | ||
Notes due | Notes due March 2043 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.70% | |||
Principal amount | $ 425,000 | 425,000 | ||
Term loans | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 650,000 | 450,000 | ||
Other debt | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 5,476 | $ 5,677 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | May 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Principal amount | $ 3,866,317,000 | $ 3,866,317,000 | $ 3,380,827,000 | |||
Loss on extinguishment of debt | 0 | (10,000,000) | $ 0 | |||
Maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 350,000,000 | |||||
Notes due September 2020 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 300,000,000 | $ 300,000,000 | 0 | 300,000,000 | ||
Interest rate | 3.625% | 3.625% | ||||
Debt face amount | $ 200,000,000 | $ 200,000,000 | ||||
Interest rate during period | 2.78% | |||||
Notes due September 2020 | Notes due | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis Spread on variable rate | 1.50% | |||||
Notes due April 2023 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 400,000,000 | $ 400,000,000 | 0 | $ 400,000,000 | ||
Interest rate | 4.70% | 4.70% | ||||
Debt due 2018 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 150,000,000 | $ 150,000,000 | ||||
Extension period | 1 year | |||||
Interest rate during period | 2.49% | |||||
Debt due 2018 | Notes due | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis Spread on variable rate | 1.125% | |||||
Notes due May 2022 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 400,000,000 | $ 400,000,000 | 0 | |||
Interest rate | 4.125% | 4.125% | 3.875% | |||
Percentage increase | 0.25% | 0.25% | ||||
Notes due June 2017 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 150,000,000 | $ 150,000,000 | ||||
Notes due September 2017 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 0 | $ 0 | 385,109,000 | |||
Interest rate | 5.75% | 5.75% | ||||
Debt face amount | $ 385,000,000 | $ 385,000,000 | ||||
Notes due May 2018 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 0 | $ 0 | 350,000,000 | |||
Interest rate | 4.75% | 4.75% | ||||
Debt face amount | $ 350,000,000 | $ 350,000,000 | ||||
Loss on extinguishment of debt | 4,000,000 | |||||
Notes due January 2037 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 35,841,000 | $ 35,841,000 | 115,041,000 | |||
Interest rate | 5.25% | 5.25% | ||||
Debt redemption | $ 79,000,000 | $ 79,000,000 | ||||
Notes due October 2021 | Notes due | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 600,000,000 | $ 600,000,000 | 600,000,000 | |||
Interest rate | 3.625% | 3.625% | ||||
Percentage increase | 0.25% | 0.25% | ||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper | $ 0 | $ 0 | $ 0 |
Debt (Maturities of Outstanding
Debt (Maturities of Outstanding Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 270,000 | |
2,019 | 500,000 | |
2,020 | 730,476 | |
2,021 | 600,000 | |
2,022 | 400,000 | |
Thereafter | 1,365,841 | |
Total debt | $ 3,866,317 | $ 3,380,827 |
Retirement Plans and Postreti77
Retirement Plans and Postretirement Medical Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Eligibility age for retiree medical benefits | 55 years | ||
Percent of all foreign plan assets | 75.00% | ||
Fair value of plan assets | $ 477,000 | $ 410,000 | |
Expected return on plan assets | 6.25% | 6.50% | |
Assumed health care cost trend rate | 7.00% | 6.00% | |
Next year's assumed health care cost trend rate | 7.00% | ||
Assumed health care cost trend rate decline | 5.00% | ||
Total contributions to defined contribution plans | $ 31,000 | $ 32,000 | |
Nonpension postretirement benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | 188,841 | 189,772 | $ 211,878 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Next year's anticipated total contributions to pension plans | $ 8,000 | ||
Nominal rate of return | 7.00% | ||
Fair value of plan assets | $ 1,557,069 | $ 1,463,350 | |
Expected return on plan assets | 6.75% | 7.00% | 7.00% |
United States | Nonpension postretirement benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | $ 172,000 | $ 174,000 | |
Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Next year's anticipated total contributions to pension plans | $ 11,000 | ||
Nominal rate of return | 6.25% | ||
Fair value of plan assets | $ 476,825 | $ 425,962 |
Retirement Plans and Postreti78
Retirement Plans and Postretirement Medical Benefits (Benefit Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United States | |||
Fair value of plan assets | |||
Fair value of plan assets - beginning of year | $ 1,464,082 | ||
Fair value of plan assets - end of year | 1,557,907 | $ 1,464,082 | |
Foreign | |||
Fair value of plan assets | |||
Fair value of plan assets - beginning of year | 547,290 | ||
Fair value of plan assets - end of year | 632,710 | 547,290 | |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 1,726,824 | 1,677,288 | |
Projected benefit obligation | |||
Benefit obligation - beginning of year | 1,678,097 | 1,689,885 | |
Service cost | 132 | 105 | $ 134 |
Interest cost | 68,611 | 73,699 | 74,331 |
Plan participants' contributions | 0 | 0 | |
Actuarial loss | 92,789 | 31,764 | |
Foreign currency changes | 0 | 0 | |
Settlement | 0 | (5,887) | |
Benefits paid | (111,892) | (111,469) | |
Benefit obligation - end of year | 1,727,737 | 1,678,097 | 1,689,885 |
Fair value of plan assets | |||
Fair value of plan assets - beginning of year | 1,464,082 | 1,460,790 | |
Actual return on plan assets | 199,749 | 110,954 | |
Company contributions | 5,968 | 9,694 | |
Plan participants' contributions | 0 | 0 | |
Settlement | 0 | (5,887) | |
Foreign currency changes | 0 | 0 | |
Benefits paid | (111,892) | (111,469) | |
Fair value of plan assets - end of year | 1,557,907 | 1,464,082 | 1,460,790 |
Amounts recognized in the Consolidated Balance Sheets | |||
Noncurrent asset | 392 | 310 | |
Current liability | (8,362) | (7,937) | |
Noncurrent liability | (161,860) | (206,388) | |
Funded status | (169,830) | (214,015) | |
Pension Benefits | Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 737,580 | 675,566 | |
Projected benefit obligation | |||
Benefit obligation - beginning of year | 688,172 | 647,112 | |
Service cost | 2,274 | 2,148 | 2,229 |
Interest cost | 18,836 | 21,886 | 24,261 |
Plan participants' contributions | 6 | 6 | |
Actuarial loss | 2,098 | 127,054 | |
Foreign currency changes | 64,236 | (88,138) | |
Settlement | 0 | (423) | |
Benefits paid | (24,249) | (21,473) | |
Benefit obligation - end of year | 751,373 | 688,172 | 647,112 |
Fair value of plan assets | |||
Fair value of plan assets - beginning of year | 547,290 | 530,112 | |
Actual return on plan assets | 46,542 | 68,067 | |
Company contributions | 13,081 | 40,872 | |
Plan participants' contributions | 6 | 6 | |
Settlement | 0 | (423) | |
Foreign currency changes | 50,040 | (69,871) | |
Benefits paid | (24,249) | (21,473) | |
Fair value of plan assets - end of year | 632,710 | 547,290 | 530,112 |
Amounts recognized in the Consolidated Balance Sheets | |||
Noncurrent asset | 19,139 | 11,744 | |
Current liability | (1,188) | (1,045) | |
Noncurrent liability | (136,614) | (151,581) | |
Funded status | (118,663) | (140,882) | |
Nonpension postretirement benefit plans | |||
Projected benefit obligation | |||
Benefit obligation - beginning of year | 189,772 | 211,878 | |
Service cost | 1,727 | 2,046 | 2,455 |
Interest cost | 7,100 | 7,969 | 8,799 |
Plan participants' contributions | 3,820 | 4,241 | |
Actuarial loss | 5,134 | (13,934) | |
Foreign currency changes | 1,066 | 409 | |
Benefits paid | (19,778) | (22,837) | |
Benefit obligation - end of year | 188,841 | 189,772 | 211,878 |
Fair value of plan assets | |||
Fair value of plan assets - beginning of year | 0 | 0 | |
Company contributions | 15,958 | 18,596 | |
Plan participants' contributions | 3,820 | 4,241 | |
Benefits paid | (19,778) | (22,837) | |
Fair value of plan assets - end of year | 0 | 0 | $ 0 |
Amounts recognized in the Consolidated Balance Sheets | |||
Current liability | (17,712) | (18,127) | |
Noncurrent liability | (171,129) | (171,645) | |
Funded status | (188,841) | (189,772) | |
Nonpension postretirement benefit plans | United States | |||
Projected benefit obligation | |||
Benefit obligation - beginning of year | 174,000 | ||
Benefit obligation - end of year | $ 172,000 | $ 174,000 |
Retirement Plans and Postreti79
Retirement Plans and Postretirement Medical Benefits (Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 477,000 | $ 410,000 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,727,292 | 1,677,675 |
Accumulated benefit obligation | 1,726,378 | 1,676,866 |
Fair value of plan assets | 1,557,069 | 1,463,350 |
Foreign | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 614,371 | 578,588 |
Accumulated benefit obligation | 601,412 | 565,992 |
Fair value of plan assets | $ 476,825 | $ 425,962 |
Retirement Plans and Postreti80
Retirement Plans and Postretirement Medical Benefits (Pretax Amounts Recognized in AOCI) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Nonpension postretirement benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 43,160 | $ 41,625 |
Prior service credit | 1,466 | 1,763 |
Total | 44,626 | 43,388 |
United States | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 835,265 | 873,523 |
Prior service credit | (391) | (452) |
Transition asset | 0 | 0 |
Total | 834,874 | 873,071 |
Foreign | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 321,914 | 342,169 |
Prior service credit | (597) | (667) |
Transition asset | (24) | (32) |
Total | $ 321,293 | $ 341,470 |
Retirement Plans and Postreti81
Retirement Plans and Postretirement Medical Benefits (Estimated Amounts to be Amortized from AOCI into Net Periodic Benefit) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Nonpension postretirement benefit plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 3,736 |
Prior service credit | 351 |
Total | 4,087 |
United States | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 32,303 |
Prior service credit | (60) |
Transition asset | 0 |
Total | 32,243 |
Foreign | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 7,304 |
Prior service credit | (72) |
Transition asset | (7) |
Total | $ 7,225 |
Retirement Plans and Postreti82
Retirement Plans and Postretirement Medical Benefits (Components of Net Periodic Benefit Cost for Defined Benefit Pension Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonpension postretirement benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,727 | $ 2,046 | $ 2,455 |
Interest cost | 7,100 | 7,969 | 8,799 |
Amortization of prior service credit | 297 | 297 | 297 |
Amortization of net actuarial loss | 3,600 | 3,615 | 7,528 |
Net periodic benefit (income) cost | 12,724 | 13,927 | 19,079 |
United States | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 132 | 105 | 134 |
Interest cost | 68,611 | 73,699 | 74,331 |
Expected return on plan assets | (97,656) | (101,918) | (104,004) |
Amortization of net transition asset | 0 | 0 | 0 |
Amortization of prior service credit | (60) | (60) | (60) |
Amortization of net actuarial loss | 28,954 | 27,220 | 29,272 |
Special termination benefits | 0 | 0 | 0 |
Settlement | 0 | 2,109 | 1,243 |
Net periodic benefit (income) cost | (19) | 1,155 | 916 |
Foreign | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2,274 | 2,148 | 2,229 |
Interest cost | 18,836 | 21,886 | 24,261 |
Expected return on plan assets | (32,242) | (32,615) | (35,421) |
Amortization of net transition asset | (8) | (8) | (9) |
Amortization of prior service credit | (71) | (73) | (66) |
Amortization of net actuarial loss | 8,052 | 5,264 | 5,926 |
Special termination benefits | 0 | 52 | 79 |
Settlement | 0 | 110 | 0 |
Net periodic benefit (income) cost | $ (3,159) | $ (3,236) | $ (3,001) |
Retirement Plans and Postreti83
Retirement Plans and Postretirement Medical Benefits (Other Changes in Plan Assets and Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Nonpension postretirement benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ 5,134 | $ (13,934) |
Amortization of net actuarial loss | (3,600) | (3,615) |
Amortization of prior service credit | (297) | (297) |
Total recognized in other comprehensive income | 1,237 | (17,846) |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | (9,304) | 22,728 |
Amortization of net actuarial loss | (28,954) | (27,220) |
Amortization of prior service credit | 60 | 60 |
Net transition asset | 0 | 0 |
Settlement | 0 | (2,109) |
Total recognized in other comprehensive income | (38,198) | (6,541) |
Foreign | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | (12,202) | 91,549 |
Amortization of net actuarial loss | (8,052) | (5,264) |
Amortization of prior service credit | 71 | 73 |
Net transition asset | 8 | 8 |
Settlement | 0 | (110) |
Total recognized in other comprehensive income | $ (20,175) | $ 86,256 |
Retirement Plans and Postreti84
Retirement Plans and Postretirement Medical Benefits (Weighted-Average Actuarial Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 6.25% | 6.50% | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.69% | 4.20% | 4.55% |
Discount rate | 4.20% | 4.55% | 4.15% |
Expected return on plan assets | 6.75% | 7.00% | 7.00% |
Foreign | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.65% | 0.70% | 1.15% |
Discount rate | 0.70% | 1.15% | 1.10% |
Expected return on plan assets | 3.75% | 3.75% | 4.00% |
Rate of compensation increase | 1.50% | 1.50% | 1.50% |
Rate of compensation increase | 1.50% | 1.50% | 1.50% |
Foreign | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.35% | 3.65% | 3.95% |
Discount rate | 3.65% | 3.95% | 3.80% |
Expected return on plan assets | 6.25% | 6.51% | 7.00% |
Rate of compensation increase | 2.50% | 2.50% | 3.50% |
Rate of compensation increase | 3.30% | 3.50% | 3.50% |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.55% | 3.90% | 4.20% |
Discount rate | 3.90% | 4.20% | 3.90% |
Pension Benefits | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.35% | 3.65% | 3.95% |
Discount rate | 3.65% | 3.95% | 3.80% |
Retirement Plans and Postreti85
Retirement Plans and Postretirement Medical Benefits (Target Asset Allocation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percent of Plan Assets | 100.00% | 100.00% |
United States | U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 15.00% | |
Percent of Plan Assets | 15.00% | 17.00% |
United States | Non-U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 15.00% | |
Percent of Plan Assets | 15.00% | 13.00% |
United States | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 60.00% | |
Percent of Plan Assets | 62.00% | 60.00% |
United States | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Percent of Plan Assets | 6.00% | 6.00% |
United States | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Percent of Plan Assets | 2.00% | 4.00% |
Foreign | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percent of Plan Assets | 100.00% | 100.00% |
Foreign | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 40.00% | |
Percent of Plan Assets | 41.00% | 41.00% |
Foreign | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10.00% | |
Percent of Plan Assets | 9.00% | 8.00% |
Foreign | U.K. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10.00% | |
Percent of Plan Assets | 10.00% | 22.00% |
Foreign | Non-U.K. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 30.00% | |
Percent of Plan Assets | 29.00% | 19.00% |
Foreign | Diversified growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10.00% | |
Percent of Plan Assets | 9.00% | 9.00% |
Foreign | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Percent of Plan Assets | 2.00% | 1.00% |
Retirement Plans and Postreti86
Retirement Plans and Postretirement Medical Benefits (Fair Value Measurements of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | $ 1,102,556 | $ 747,177 | ||
Cash | 1,009,021 | 764,522 | $ 640,190 | $ 1,043,439 |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 260,959 | 232,829 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 841,597 | 514,348 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 1,733,997 | 1,622,945 | ||
Securities lending payable | (152,179) | (174,651) | ||
Cash | 5,186 | 18,164 | ||
Other | (29,097) | (2,376) | ||
Fair value of plan assets | 1,557,907 | 1,464,082 | ||
United States | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 457,029 | 400,926 | ||
United States | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 1,147,254 | 1,083,294 | ||
United States | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 129,714 | 138,725 | ||
United States | Money market funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 18,160 | 9,213 | ||
United States | Money market funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 8,810 | 2,604 | ||
United States | Money market funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 9,350 | 6,609 | ||
United States | Money market funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 302,858 | 324,945 | ||
United States | Equity securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 152,815 | 184,254 | ||
United States | Equity securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 150,043 | 140,691 | ||
United States | Equity securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Commingled fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 377,078 | 358,776 | ||
United States | Commingled fixed income securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Commingled fixed income securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 377,078 | 358,776 | ||
United States | Commingled fixed income securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Government and related securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 315,877 | 235,194 | ||
United States | Government and related securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 295,404 | 214,068 | ||
United States | Government and related securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 20,473 | 21,126 | ||
United States | Government and related securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 418,908 | 367,369 | ||
United States | Corporate debt securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Corporate debt securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 418,908 | 367,369 | ||
United States | Corporate debt securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Mortgage-backed securities /asset-backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 19,223 | 15,308 | ||
United States | Mortgage-backed securities /asset-backed securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Mortgage-backed securities /asset-backed securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 19,223 | 14,072 | ||
United States | Mortgage-backed securities /asset-backed securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 1,236 | ||
United States | Private equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 38,362 | 49,637 | ||
United States | Private equity | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Private equity | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Private equity | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 38,362 | 49,637 | ||
United States | Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 91,352 | 87,852 | ||
United States | Real estate | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Real estate | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Real estate | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 91,352 | 87,852 | ||
United States | Securities lending collateral | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 152,179 | 174,651 | ||
United States | Securities lending collateral | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
United States | Securities lending collateral | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 152,179 | 174,651 | ||
United States | Securities lending collateral | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 629,880 | 541,463 | ||
Cash | 2,203 | 4,262 | ||
Other | 627 | 1,565 | ||
Fair value of plan assets | 632,710 | 547,290 | ||
Foreign | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 32,295 | ||
Foreign | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 544,255 | 437,906 | ||
Foreign | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 85,625 | 71,262 | ||
Foreign | Money market funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 13,375 | 6,811 | ||
Foreign | Money market funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Money market funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 13,375 | 6,811 | ||
Foreign | Money market funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 226,032 | 214,238 | ||
Foreign | Equity securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 32,295 | ||
Foreign | Equity securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 226,032 | 181,943 | ||
Foreign | Equity securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Commingled fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 213,844 | 69,022 | ||
Foreign | Commingled fixed income securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Commingled fixed income securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 213,844 | 69,022 | ||
Foreign | Commingled fixed income securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Government and related securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 66,115 | 29,363 | ||
Foreign | Government and related securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Government and related securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 66,115 | 29,363 | ||
Foreign | Government and related securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 24,889 | 150,767 | ||
Foreign | Corporate debt securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Corporate debt securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 24,889 | 150,767 | ||
Foreign | Corporate debt securities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 41,601 | 34,483 | ||
Foreign | Real estate | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Real estate | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Real estate | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 41,601 | 34,483 | ||
Foreign | Diversified growth funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 44,024 | 36,779 | ||
Foreign | Diversified growth funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Diversified growth funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | 0 | 0 | ||
Foreign | Diversified growth funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total plan assets at fair value | $ 44,024 | $ 36,779 |
Retirement Plans and Postreti87
Retirement Plans and Postretirement Medical Benefits (Level 3 Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
United States | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | $ 138,725 | $ 147,738 |
Realized gains | 10,231 | 11,488 |
Unrealized gains (losses) | 112 | (2,687) |
Net purchases, sales and settlements | (19,354) | (17,814) |
Balance at | 129,714 | 138,725 |
United States | Mortgage-backed securities /asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 1,236 | 1,592 |
Realized gains | 25 | 8 |
Unrealized gains (losses) | 49 | 38 |
Net purchases, sales and settlements | (1,310) | (402) |
Balance at | 0 | 1,236 |
United States | Private equity | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 49,637 | 63,577 |
Realized gains | 9,226 | 10,200 |
Unrealized gains (losses) | (2,334) | (7,540) |
Net purchases, sales and settlements | (18,167) | (16,600) |
Balance at | 38,362 | 49,637 |
United States | Real estate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 87,852 | 82,569 |
Realized gains | 980 | 1,280 |
Unrealized gains (losses) | 2,397 | 4,815 |
Net purchases, sales and settlements | 123 | (812) |
Balance at | 91,352 | 87,852 |
Foreign | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 71,262 | 59,690 |
Unrealized gains (losses) | 5,710 | 3,020 |
Net purchases, sales and settlements | 1,481 | 20,464 |
Foreign currency gain | 7,172 | (11,912) |
Balance at | 85,625 | 71,262 |
Foreign | Real estate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 34,483 | 39,177 |
Unrealized gains (losses) | 2,159 | 459 |
Net purchases, sales and settlements | 1,481 | 1,436 |
Foreign currency gain | 3,478 | (6,589) |
Balance at | 41,601 | 34,483 |
Foreign | Diversified growth funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at | 36,779 | 20,513 |
Unrealized gains (losses) | 3,551 | 2,561 |
Net purchases, sales and settlements | 0 | 19,028 |
Foreign currency gain | 3,694 | (5,323) |
Balance at | $ 44,024 | $ 36,779 |
Retirement Plans and Postreti88
Retirement Plans and Postretirement Medical Benefits (Effect of Change in the Assumed Health Care Cost Trend Rates) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Effect of 1% increase on total of service and interest cost components | $ 323 |
Effect of 1% decrease on total of service and interest cost components | (269) |
Effect of 1% increase on postretirement benefit obligation | 7,672 |
Effect of 1% decrease on postretirement benefit obligation | $ (6,479) |
Retirement Plans and Postreti89
Retirement Plans and Postretirement Medical Benefits (Nonpension Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 132,626 |
2,019 | 129,051 |
2,020 | 130,201 |
2,021 | 128,257 |
2,022 | 128,221 |
Thereafter | 628,715 |
Total | 1,277,071 |
Nonpension benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 17,693 |
2,019 | 17,163 |
2,020 | 16,554 |
2,021 | 15,952 |
2,022 | 15,347 |
Thereafter | 63,303 |
Total | $ 146,012 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 195,291 | $ 169,493 | $ 516,233 | ||||||||
International | 87,698 | 76,877 | 94,592 | ||||||||
Income from continuing operations before income taxes | $ 57,622 | $ 74,965 | $ 53,853 | $ 96,549 | $ (40,125) | $ 93,593 | $ 93,238 | $ 99,664 | $ 282,989 | $ 246,370 | $ 610,825 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Federal: | |||||||||||
Current | $ 46,836 | $ 95,598 | $ 115,557 | ||||||||
Deferred | (48,449) | (1,559) | 19,941 | ||||||||
U.S. Federal: Total | (1,613) | 94,039 | 135,498 | ||||||||
U.S. State and Local: | |||||||||||
Current | 461 | 9,409 | 11,243 | ||||||||
Deferred | 15,460 | 4,757 | 16,094 | ||||||||
U.S. State and Local: Total | 15,921 | 14,166 | 27,337 | ||||||||
International: | |||||||||||
Current | (1,766) | 22,872 | 22,794 | ||||||||
Deferred | 9,107 | 742 | 4,149 | ||||||||
International: Total | 7,341 | 23,614 | 26,943 | ||||||||
Total current | 45,531 | 127,879 | 149,594 | ||||||||
Total deferred | (23,882) | 3,940 | 40,184 | ||||||||
Total provision for income taxes | $ (32,326) | $ 17,607 | $ 4,952 | $ 31,416 | $ 38,204 | $ 23,197 | $ 33,394 | $ 37,024 | $ 21,649 | $ 131,819 | $ 189,778 |
Effective tax rate | 7.70% | 53.50% | 31.10% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax benefit from Tax Act | $ 39,000 | ||
Remeasurement of U.S. deferred tax liability | 130,000 | ||
U.S. tax on unremitted earnings | 90,916 | $ 0 | $ 0 |
Tax benefits from IRS tax settlements and resolution of U.S. tax examinations | 30,000 | 15,000 | 20,000 |
Tax benefits from the retroactive effect U.S. tax legislation | 58,000 | 3,000 | |
Valuation allowance on tax attribute carryovers | 6,000 | ||
Net operating loss carryforwards | 287,000 | ||
Indefinite lived net operating loss carryforwards | $ 225,000 | ||
Operating loss carryforwards, expiration period | 15 years | ||
Tax credit carry forwards | $ 82,285 | 53,181 | |
Tax credit carry forward without expiration | 49,000 | ||
Unrecognized tax benefits that would affect the effective tax rate if recognized | $ 74,000 | 104,000 | 117,000 |
Possible change to unrecognized tax benefits | 25.00% | ||
Interest and penalties | $ (4,000) | 1,000 | $ (4,000) |
Income tax interest and penalties accrued | $ 4,000 | $ 9,000 | |
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards, expiration period | 5 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards, expiration period | 15 years |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||||||||
Federal statutory provision | $ 99,045 | $ 86,229 | $ 213,789 | ||||||||
State and local income taxes | 7,327 | 9,208 | 17,769 | ||||||||
Other impact of foreign operations | (31,573) | (13,806) | (6,492) | ||||||||
Tax incentives/credits/exempt income | (16,292) | (10,735) | (12,130) | ||||||||
Outside basis differences | 0 | 0 | (27,110) | ||||||||
Goodwill impairments | 0 | 58,022 | 0 | ||||||||
Remeasurement of U.S. deferred tax liability | (129,612) | 0 | 0 | ||||||||
U.S. tax on unremitted earnings | 90,916 | 0 | 0 | ||||||||
Other, net | 1,838 | 2,901 | 3,952 | ||||||||
Total provision for income taxes | $ (32,326) | $ 17,607 | $ 4,952 | $ 31,416 | $ 38,204 | $ 23,197 | $ 33,394 | $ 37,024 | $ 21,649 | $ 131,819 | $ 189,778 |
Income Taxes (Deferred Tax Liab
Income Taxes (Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax liabilities: | ||
Depreciation | $ (77,415) | $ (93,475) |
Deferred profit (for tax purposes) on sale to finance subsidiary | (60,340) | (98,247) |
Lease revenue and related depreciation | (133,908) | (137,665) |
Intangible assets | (106,488) | (113,128) |
Other | (22,468) | (27,340) |
Gross deferred tax liabilities | (400,619) | (469,855) |
Deferred tax assets: | ||
Nonpension postretirement benefits | 48,387 | 71,101 |
Pension | 66,270 | 105,564 |
Inventory and equipment capitalization | 11,380 | 13,318 |
Restructuring charges | 12,476 | 6,980 |
Long-term incentives | 11,544 | 17,923 |
Net operating loss | 108,006 | 97,194 |
Tax credit carry forwards | 82,285 | 53,181 |
Tax uncertainties gross-up | 9,920 | 18,273 |
Other | 51,436 | 79,799 |
Gross deferred tax assets | 401,704 | 463,333 |
Less: Valuation allowance | (178,156) | (127,095) |
Net deferred tax assets | 223,548 | 336,238 |
Total deferred taxes, net | $ (177,071) | $ (133,617) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 124,728 | $ 139,249 | $ 132,495 |
Increases from prior period positions | 528 | 0 | 7,637 |
Decreases from prior period positions | (31,470) | (21,207) | (16,753) |
Increases from current period positions | 5,951 | 10,867 | 23,533 |
Decreases relating to settlements with tax authorities | (6,953) | (1,791) | (3,831) |
Reductions from lapse of applicable statute of limitations | (3,017) | (2,390) | (3,832) |
Balance at end of year | $ 89,767 | $ 124,728 | $ 139,249 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rental expense | $ 46,000 | $ 45,000 | $ 47,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 47,820 | ||
2,019 | 39,107 | ||
2,020 | 30,180 | ||
2,021 | 22,266 | ||
2,022 | 15,256 | ||
Thereafter | 63,685 | ||
Total minimum lease payments | $ 218,314 |
Stockholders' Equity (Deficit97
Stockholders' Equity (Deficit) (Details) | 12 Months Ended | |||
Dec. 31, 2017class$ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2017$ / sharesshares | |
Schedule of Capitalization, Equity [Line Items] | ||||
Number of classes of preferred stock | class | 2 | |||
Preferred stock, dividend rate | 4.00% | 4.00% | ||
Stock | ||||
Shares reserved for issuance under stock plans, dividend reinvestment program and conversion of Preferred and Preference Stock | 33,691,570 | |||
Preferred Stock | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Preferred stock, dividend rate | 4.00% | |||
Dividends | $ / shares | $ 2 | |||
Shares issued upon conversion | 24.24 | |||
Redemption price per share | $ / shares | $ 50 | |||
Shares authorized to be issued | 600,000 | |||
Shares outstanding | 12 | 12 | 12 | |
Stock | ||||
Shares outstanding | 12 | |||
Shares outstanding | 12 | 12 | ||
Preference Stock | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Dividends | $ / shares | $ 2.12 | |||
Shares issued upon conversion | 16.53 | |||
Redemption price per share | $ / shares | $ 28 | |||
Shares authorized to be issued | 5,000,000 | |||
Shares outstanding | 17,832 | 17,832 | 16,301 | |
Stock | ||||
Shares outstanding | 17,832 | |||
Shares outstanding | 16,301 | 17,832 | ||
Common Stock | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Shares outstanding | 185,668,718 | 195,521,208 | 201,027,964 | 186,603,738 |
Stock | ||||
Shares outstanding | 185,668,718 | 195,521,208 | 201,027,964 | |
Repurchases of common stock | (10,633,235) | (6,476,796) | ||
Issuance of common stock | 881,480 | 767,060 | 943,686 | |
Conversions to common stock | 53,540 | 13,685 | 26,354 | |
Shares outstanding | 186,603,738 | 185,668,718 | 195,521,208 | |
Treasury Stock | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Shares outstanding | 137,669,194 | 127,816,704 | 122,309,948 | 136,734,174 |
Stock | ||||
Shares outstanding | 137,669,194 | 127,816,704 | 122,309,948 | |
Repurchases of common stock | (10,633,235) | (6,476,796) | ||
Issuance of common stock | 881,480 | 767,060 | 943,686 | |
Conversions to common stock | 53,540 | 13,685 | 26,354 | |
Shares outstanding | 136,734,174 | 137,669,194 | 127,816,704 |
Accumulated Other Comprehensi98
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Revenue | $ 1,049,117 | $ 842,820 | $ 821,371 | $ 836,640 | $ 887,069 | $ 839,031 | $ 835,886 | $ 844,589 | $ 3,549,948 | $ 3,406,575 | $ 3,578,060 |
Interest expense | (113,497) | (88,970) | (87,583) | ||||||||
Tax (benefit) provision | (32,326) | $ 17,607 | $ 4,952 | 31,416 | 38,204 | 23,197 | 33,394 | 37,024 | 21,649 | 131,819 | 189,778 |
Net income | (79,079) | $ 70,105 | $ 58,184 | 62,640 | 261,340 | 111,850 | 426,318 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance at | (940,133) | (888,635) | (940,133) | (888,635) | (846,156) | ||||||
Other comprehensive income (loss) before reclassifications | 119,446 | (77,619) | (73,459) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 28,514 | 26,121 | 30,980 | ||||||||
Other comprehensive income (loss) | 147,960 | (51,498) | (42,479) | ||||||||
Balance at | (792,173) | (940,133) | (792,173) | (940,133) | (888,635) | ||||||
Cash flow hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance at | (1,485) | (3,912) | (1,485) | (3,912) | (4,689) | ||||||
Other comprehensive income (loss) before reclassifications | (288) | 1,095 | 546 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,367 | 1,332 | 231 | ||||||||
Other comprehensive income (loss) | 1,079 | 2,427 | 777 | ||||||||
Balance at | (406) | (1,485) | (406) | (1,485) | (3,912) | ||||||
Available-for-sale securities | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance at | 120 | 536 | 120 | 536 | 2,966 | ||||||
Other comprehensive income (loss) before reclassifications | 1,158 | (1,109) | (1,715) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 319 | 693 | (715) | ||||||||
Other comprehensive income (loss) | 1,477 | (416) | (2,430) | ||||||||
Balance at | 1,597 | 120 | 1,597 | 120 | 536 | ||||||
Pension and postretirement benefit plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance at | (787,813) | (738,768) | (787,813) | (738,768) | (786,079) | ||||||
Other comprehensive income (loss) before reclassifications | 12,185 | (73,141) | 19,146 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 26,828 | 24,096 | 28,165 | ||||||||
Other comprehensive income (loss) | 39,013 | (49,045) | 47,311 | ||||||||
Balance at | (748,800) | (787,813) | (748,800) | (787,813) | (738,768) | ||||||
Foreign currency adjustments | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance at | $ (150,955) | $ (146,491) | (150,955) | (146,491) | (58,354) | ||||||
Other comprehensive income (loss) before reclassifications | 106,391 | (4,464) | (91,436) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 3,299 | ||||||||
Other comprehensive income (loss) | 106,391 | (4,464) | (88,137) | ||||||||
Balance at | $ (44,564) | $ (150,955) | (44,564) | (150,955) | (146,491) | ||||||
Amounts Reclassified from AOCI | Cash flow hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Revenue | (179) | 68 | 1,082 | ||||||||
Cost of sales | (32) | (222) | 551 | ||||||||
Interest expense | (2,028) | (2,028) | (2,028) | ||||||||
Total before tax | (2,239) | (2,182) | (395) | ||||||||
Tax (benefit) provision | (872) | (850) | (164) | ||||||||
Net income | (1,367) | (1,332) | (231) | ||||||||
Amounts Reclassified from AOCI | Available-for-sale securities | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Tax (benefit) provision | (201) | (433) | 419 | ||||||||
Net income | (319) | (693) | 715 | ||||||||
Interest income | (520) | (1,126) | 1,134 | ||||||||
Amounts Reclassified from AOCI | Pension and postretirement benefit plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total before tax | (40,764) | (38,526) | (44,131) | ||||||||
Tax (benefit) provision | (13,936) | (14,430) | (15,966) | ||||||||
Net income | (26,828) | (24,096) | (28,165) | ||||||||
Transition asset | 8 | 8 | 9 | ||||||||
Prior service costs | (166) | (164) | (171) | ||||||||
Actuarial losses | $ (40,606) | $ (38,370) | $ (43,969) |
Stock-Based Compensation Plan99
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | 15,725,806 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation cost | $ 15 | ||
Weighted average recognition period | 1 year 9 months 18 days | ||
Intrinsic value of units outstanding | $ 28 | ||
Intrinsic value of units vested | 26 | $ 14 | $ 18 |
Fair value of units vested | $ 14 | $ 21 | $ 14 |
Shares granted (in shares) | 1,995,473 | 826,546 | 809,436 |
Issued weighted average fair value (in dollars per shares) | $ 13.24 | $ 17.20 | $ 21.15 |
Restricted Stock Units | Directors' Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Shares granted (in shares) | 63,090 | 54,855 | |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Shares granted (in shares) | 1,073,934 | 889,599 | |
Performance Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of awards granted | 0.00% | ||
Performance Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target number of awards granted | 200.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 4 | ||
Weighted average recognition period | 1 year 8 months 12 days | ||
Expiration period | 10 years | ||
Options exercised | 0 | 0 | |
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan discounted offering price of commons stock | 95.00% | ||
Shares purchased under the Employee Stock Purchase Plan | 150,629 | 147,680 | |
Shares reserved for future purchase under the ESPP | 2,770,428 |
Stock-Based Compensation Pla100
Stock-Based Compensation Plans (Restricted Stock Units) (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Units outstanding beginning (in shares) | 1,609,459 | 1,727,214 | |
Granted (in shares) | 1,995,473 | 826,546 | 809,436 |
Vested (in shares) | (784,295) | (822,290) | |
Forfeited (in shares) | (169,584) | (122,011) | |
Units outstanding ending (in shares) | 2,651,053 | 1,609,459 | 1,727,214 |
Weighted average grant date fair value | |||
Weighted average grant date fair value - Beginning (in dollars per shares) | $ 17.50 | $ 18.30 | |
Granted (in dollars per shares) | 13.24 | 17.20 | $ 21.15 |
Vested (in dollars per shares) | 19.42 | 19.91 | |
Forfeited (in dollars per shares) | 14.76 | 19.97 | |
Weighted average grant date fair value - Ending (in dollars per shares) | $ 14.16 | $ 17.50 | $ 18.30 |
Stock-Based Compensation Pla101
Stock-Based Compensation Plans (Performance Stock Units) (Details) - Performance Stock Units - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | ||
Units outstanding beginning (in shares) | 379,898 | 1,107,515 |
Granted (in shares) | 1,073,934 | 889,599 |
Performance adjustments (in shares) | (226,154) | (1,400,425) |
Forfeited (in shares) | (82,653) | (216,791) |
Units outstanding ending (in shares) | 1,145,025 | 379,898 |
Stock-Based Compensation Pla102
Stock-Based Compensation Plans (Stock Option Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | ||
Closing Balance (in shares) | 10,495,039 | |
Options outstanding - end of the year (in shares) | 6,690,250 | |
Per share weighted average exercise prices | ||
Closing Balance (in dollars per shares) | $ 21.67 | |
Options exercisable - end of the year (in dollars per share) | $ 25.57 | |
Stock Options | ||
Shares | ||
Closing Balance (in shares) | 9,122,762 | 8,771,600 |
Granted (in shares) | 2,553,510 | 1,758,760 |
Canceled (in shares) | (63,517) | (157,176) |
Expired (in shares) | (1,117,716) | (1,250,422) |
Closing Balance (in shares) | 10,495,039 | 9,122,762 |
Options outstanding - end of the year (in shares) | 6,690,250 | 7,140,772 |
Per share weighted average exercise prices | ||
Opening Balance (in dollars per shares) | $ 27.13 | $ 31.26 |
Granted (in dollars per share) | 13.16 | 16.87 |
Canceled (in dollars per share) | 20.34 | 19.48 |
Expired (in dollars per share) | 46.88 | 42.62 |
Closing Balance (in dollars per shares) | 21.67 | 27.13 |
Options exercisable - end of the year (in dollars per share) | $ 25.57 | $ 27.47 |
Stock-Based Compensation Pla103
Stock-Based Compensation Plans (Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Shares (in shares) | shares | 10,495,039 |
Options Outstanding - Per share weighted-average exercise price (in dollars per share) | $ 21.67 |
Options Outstanding - Weighted-average remaining contractual life | 4 years 11 months 8 days |
Options Exercisable - Shares (in shares) | shares | 6,690,250 |
Options Exercisable - Per share weighted-average exercise price (in dollars per share) | $ 25.57 |
Options Exercisable - Weighted-average remaining contractual life | 2 years 9 months 14 days |
$13.11 - $14.26 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of per share exercise prices, lower range (in dollars per share) | $ 13.11 |
Range of per share exercise prices, upper range (in dollars per share) | $ 14.26 |
Options Outstanding - Shares (in shares) | shares | 2,653,510 |
Options Outstanding - Per share weighted-average exercise price (in dollars per share) | $ 13.17 |
Options Outstanding - Weighted-average remaining contractual life | 8 years 11 months 8 days |
Options Exercisable - Shares (in shares) | shares | 100,000 |
Options Exercisable - Per share weighted-average exercise price (in dollars per share) | $ 13.39 |
Options Exercisable - Weighted-average remaining contractual life | 4 years 11 months 1 day |
$14.27 - $21.89 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of per share exercise prices, lower range (in dollars per share) | $ 14.27 |
Range of per share exercise prices, upper range (in dollars per share) | $ 21.89 |
Options Outstanding - Shares (in shares) | shares | 2,347,595 |
Options Outstanding - Per share weighted-average exercise price (in dollars per share) | $ 17.07 |
Options Outstanding - Weighted-average remaining contractual life | 7 years 1 month 27 days |
Options Exercisable - Shares (in shares) | shares | 1,296,316 |
Options Exercisable - Per share weighted-average exercise price (in dollars per share) | $ 17.22 |
Options Exercisable - Weighted-average remaining contractual life | 6 years 4 months 20 days |
$21.90 - $24.77 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of per share exercise prices, lower range (in dollars per share) | $ 21.90 |
Range of per share exercise prices, upper range (in dollars per share) | $ 24.77 |
Options Outstanding - Shares (in shares) | shares | 2,683,597 |
Options Outstanding - Per share weighted-average exercise price (in dollars per share) | $ 23.29 |
Options Outstanding - Weighted-average remaining contractual life | 2 years 3 months 25 days |
Options Exercisable - Shares (in shares) | shares | 2,683,597 |
Options Exercisable - Per share weighted-average exercise price (in dollars per share) | $ 23.29 |
Options Exercisable - Weighted-average remaining contractual life | 2 years 3 months 25 days |
$24.78 - $36.96 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of per share exercise prices, lower range (in dollars per share) | $ 24.78 |
Range of per share exercise prices, upper range (in dollars per share) | $ 36.96 |
Options Outstanding - Shares (in shares) | shares | 2,810,337 |
Options Outstanding - Per share weighted-average exercise price (in dollars per share) | $ 31.98 |
Options Outstanding - Weighted-average remaining contractual life | 1 year 9 months 18 days |
Options Exercisable - Shares (in shares) | shares | 2,610,337 |
Options Exercisable - Per share weighted-average exercise price (in dollars per share) | $ 32.53 |
Options Exercisable - Weighted-average remaining contractual life | 1 year 3 months 29 days |
Stock-Based Compensation Pla104
Stock-Based Compensation Plans (Stock Options Assumptions) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 5.70% | 4.50% |
Expected stock price volatility | 29.70% | 29.00% |
Risk-free interest rate | 2.30% | 1.60% |
Expected life | 7 years | 7 years |
Weighted-average fair value per option granted | $ 2 | $ 2.85 |
Fair value of options granted | $ 5,107 | $ 5,013 |
Quarterly Financial Data (un105
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||
Revenue | $ 1,049,117 | $ 842,820 | $ 821,371 | $ 836,640 | $ 887,069 | $ 839,031 | $ 835,886 | $ 844,589 | $ 3,549,948 | $ 3,406,575 | $ 3,578,060 | |||
Cost of revenues | 564,624 | 401,306 | 382,565 | 374,174 | 400,306 | 376,987 | 372,144 | 365,241 | 1,722,669 | 1,514,678 | ||||
Operating expenses | 426,871 | 366,549 | 384,953 | 365,917 | 526,888 | 368,451 | 370,504 | 379,684 | 1,544,290 | 1,645,527 | ||||
Income from continuing operations before income taxes | 57,622 | 74,965 | 53,853 | 96,549 | (40,125) | 93,593 | 93,238 | 99,664 | 282,989 | 246,370 | 610,825 | |||
Provision for income taxes | (32,326) | 17,607 | 4,952 | 31,416 | 38,204 | 23,197 | 33,394 | 37,024 | 21,649 | 131,819 | 189,778 | |||
Income from continuing operations | (78,329) | 70,396 | 59,844 | 62,640 | 261,340 | 114,551 | 421,047 | |||||||
(Loss) income from discontinued operations, net of tax | (750) | (291) | (1,660) | 0 | 0 | (2,701) | 5,271 | |||||||
Net income | (79,079) | 70,105 | 58,184 | 62,640 | 261,340 | 111,850 | 426,318 | |||||||
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests | 5,264 | 4,593 | 4,594 | 4,594 | 0 | 19,045 | 18,375 | |||||||
Net income - Pitney Bowes Inc. | 89,948 | 57,358 | 48,901 | 65,133 | (84,343) | 65,512 | 53,590 | 58,046 | 261,340 | 92,805 | 407,943 | |||
Amounts attributable to common stockholders: | ||||||||||||||
Net income from continuing operations | (83,593) | 65,803 | 55,250 | 58,046 | 261,340 | 95,506 | 402,672 | |||||||
(Loss) income from discontinued operations, net of tax | (750) | (291) | (1,660) | 0 | 0 | (2,701) | 5,271 | |||||||
Net income - Pitney Bowes Inc. | $ 89,948 | $ 57,358 | $ 48,901 | $ 65,133 | $ (84,343) | $ 65,512 | $ 53,590 | $ 58,046 | $ 261,340 | $ 92,805 | $ 407,943 | |||
Basic earnings per share attributable to common stockholders: | ||||||||||||||
Continuing operations (in dollars per share) | $ (0.45) | $ 0.35 | $ 0.29 | $ 0.30 | $ 1.40 | [1] | $ 0.51 | [1] | $ 2.01 | [1] | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | 0 | 0 | [1] | (0.01) | [1] | 0.03 | [1] | ||||
Net income - Pitney Bowes Inc. (in dollars per share) | $ 0.48 | $ 0.31 | $ 0.26 | $ 0.35 | (0.45) | 0.35 | 0.28 | 0.30 | 1.40 | [1] | 0.49 | [1] | 2.04 | [1] |
Diluted earnings per share attributable to common stockholders: | ||||||||||||||
Continuing operations (in dollars per share) | (0.45) | 0.35 | 0.29 | 0.30 | 1.39 | [1] | 0.51 | [1] | 2 | [1] | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | 0 | 0 | [1] | (0.01) | [1] | 0.03 | [1] | ||||
Net income - Pitney Bowes Inc. (in dollars per share) | $ 0.48 | $ 0.31 | $ 0.26 | $ 0.35 | $ (0.45) | $ 0.35 | $ 0.28 | $ 0.30 | $ 1.39 | [1] | $ 0.49 | [1] | $ 2.03 | [1] |
Compensation expense | $ 36,000 | |||||||||||||
Goodwill impairment | $ 171,000 | $ 0 | $ 171,092 | $ 0 | ||||||||||
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Schedule II - Valuation and 106
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of year | $ 14,372 | $ 9,997 | $ 12,455 |
Additions charged to expense | 9,770 | 6,797 | 430 |
Deductions | (8,157) | (2,422) | (2,888) |
Balance at end of year | 15,985 | 14,372 | 9,997 |
Valuation allowance for deferred tax asset | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of year | 127,095 | 132,624 | 116,935 |
Additions charged to expense | 53,782 | 6,523 | 21,232 |
Deductions | (2,721) | (12,052) | (5,543) |
Balance at end of year | $ 178,156 | $ 127,095 | $ 132,624 |