Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 25, 2018 | |
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-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 188,021,682 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | ||||
Total revenue | $ 861,436 | $ 730,413 | $ 1,742,384 | $ 1,473,593 |
Costs and expenses: | ||||
Financing interest expense | 12,346 | 12,843 | 24,571 | 25,817 |
Selling, general and administrative | 282,456 | 283,073 | 577,894 | 573,645 |
Research and development | 31,073 | 30,328 | 61,395 | 59,282 |
Restructuring charges and asset impairments, net | 11,503 | 25,990 | 12,407 | 27,639 |
Other components of net pension and postretirement cost | (2,499) | 1,267 | (4,218) | 2,723 |
Interest expense, net | 29,623 | 27,600 | 60,476 | 53,276 |
Total costs and expenses | 807,972 | 688,162 | 1,627,631 | 1,346,836 |
Income from continuing operations before taxes | 53,464 | 42,251 | 114,753 | 126,757 |
Provision for income taxes | 6,458 | 790 | 22,721 | 27,872 |
Income from continuing operations | 47,006 | 41,461 | 92,032 | 98,885 |
Income from discontinued operations, net of tax | 1,208 | 7,440 | 9,695 | 15,149 |
Net income | $ 48,214 | $ 48,901 | $ 101,727 | $ 114,034 |
Basic earnings per share: | ||||
Continuing operations (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.49 | $ 0.53 |
Discontinued operations (in dollars per share) | 0.01 | 0.04 | 0.05 | 0.08 |
Net Income (in dollars per share) | 0.26 | 0.26 | 0.54 | 0.61 |
Diluted earnings per share: | ||||
Continuing operations (in dollars per share) | 0.25 | 0.22 | 0.49 | 0.53 |
Discontinued operations (in dollars per share) | 0.01 | 0.04 | 0.05 | 0.08 |
Net Income (in dollars per share) | 0.26 | 0.26 | 0.54 | 0.61 |
Dividends declared per share of common stock (in dollars per share) | $ 0.1875 | $ 0.1875 | $ 0.3750 | $ 0.375 |
Equipment sales | ||||
Net income (loss) | ||||
Total revenue | $ 105,750 | $ 121,384 | $ 216,121 | $ 245,887 |
Costs and expenses: | ||||
Cost of products and sales | 47,106 | 51,506 | 93,160 | 96,122 |
Supplies | ||||
Net income (loss) | ||||
Total revenue | 55,457 | 58,639 | 115,450 | 119,694 |
Costs and expenses: | ||||
Cost of products and sales | 15,738 | 16,216 | 32,685 | 33,068 |
Software | ||||
Net income (loss) | ||||
Total revenue | 91,702 | 81,319 | 167,996 | 154,165 |
Costs and expenses: | ||||
Cost of products and sales | 26,459 | 23,361 | 50,514 | 46,515 |
Rentals | ||||
Net income (loss) | ||||
Total revenue | 91,809 | 95,447 | 186,435 | 194,754 |
Costs and expenses: | ||||
Cost of products and sales | 21,078 | 21,143 | 45,132 | 41,422 |
Financing | ||||
Net income (loss) | ||||
Total revenue | 76,671 | 83,653 | 156,774 | 169,398 |
Support services | ||||
Net income (loss) | ||||
Total revenue | 72,171 | 72,068 | 145,194 | 147,273 |
Costs and expenses: | ||||
Cost of products and sales | 39,609 | 41,772 | 82,736 | 83,421 |
Business services | ||||
Net income (loss) | ||||
Total revenue | 367,876 | 217,903 | 754,414 | 442,422 |
Costs and expenses: | ||||
Cost of products and sales | $ 293,480 | $ 153,063 | $ 590,879 | $ 303,906 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 48,214 | $ 48,901 | $ 101,727 | $ 114,034 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation | (44,584) | 46,791 | (29,073) | 66,706 |
Net unrealized (loss) gain on cash flow hedges, net of tax of $(78), $(120), $154 and $235, respectively | (235) | (196) | 251 | 383 |
Net unrealized (loss) gain on investment securities, net of tax of $(447), $758, $(1,813) and $1,102, respectively | (1,305) | 1,291 | (5,296) | 1,876 |
Adjustments to pension and postretirement plans, net of tax of $(304) | 0 | 0 | 0 | (1,482) |
Amortization of pension and postretirement costs, net of tax benefits of $2,564, $3,442, $5,368 and $6,956, respectively | 7,868 | 6,624 | 16,040 | 13,335 |
Other comprehensive (loss) income, net of tax | (38,256) | 54,510 | (18,078) | 80,818 |
Comprehensive income | $ 9,958 | $ 103,411 | $ 83,649 | $ 194,852 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) on cash flow hedges, tax | $ (78) | $ (120) | $ 154 | $ 235 |
Net unrealized gain on investment securities, tax | (447) | 758 | (1,813) | 1,102 |
Adjustments to pension and postretirement plans, tax | (304) | |||
Amortization of pension and postretirement costs, tax | $ 2,564 | $ 3,442 | $ 5,368 | $ 6,956 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 689,870 | $ 1,009,021 |
Short-term investments | 55,699 | 48,988 |
Accounts receivable (net of allowance of $13,515 and $14,786, respectively) | 408,703 | 427,022 |
Short-term finance receivables (net of allowance of $14,924 and $12,187, respectively) | 812,055 | 828,003 |
Inventories | 49,051 | 40,769 |
Current income taxes | 39,100 | 58,439 |
Other current assets and prepayments | 102,104 | 74,589 |
Assets of discontinued operations | 313,356 | 334,848 |
Total current assets | 2,469,938 | 2,821,679 |
Property, plant and equipment, net | 398,909 | 373,503 |
Rental property and equipment, net | 180,585 | 183,956 |
Long-term finance receivables (net of allowance of $6,420 and $6,446 respectively) | 597,302 | 652,087 |
Goodwill | 1,767,848 | 1,774,645 |
Intangible assets, net | 249,125 | 272,186 |
Noncurrent income taxes | 54,099 | 59,909 |
Other assets | 528,945 | 540,750 |
Total assets | 6,246,751 | 6,678,715 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,349,344 | 1,450,149 |
Current income taxes | 5,686 | 8,823 |
Current portion of long-term debt | 334,999 | 271,057 |
Advance billings | 237,709 | 257,766 |
Liabilities of discontinued operations | 84,219 | 72,808 |
Total current liabilities | 2,011,957 | 2,060,603 |
Deferred taxes on income | 234,190 | 234,643 |
Tax uncertainties and other income tax liabilities | 105,803 | 116,551 |
Long-term debt | 3,237,810 | 3,559,278 |
Other noncurrent liabilities | 461,074 | 519,079 |
Total liabilities | 6,050,834 | 6,490,154 |
Commitments and contingencies (See Note 14) | ||
Stockholders’ equity: | ||
Cumulative preferred stock, $50 par value, 4% convertible | 1 | 1 |
Cumulative preference stock, no par value, $2.12 convertible | 415 | 441 |
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 122,732 | 138,367 |
Retained earnings | 5,248,991 | 5,229,584 |
Accumulated other comprehensive loss | (810,251) | (792,173) |
Treasury stock, at cost (136,104,630 and 136,734,174 shares, respectively) | (4,689,309) | (4,710,997) |
Total stockholders’ equity | 195,917 | 188,561 |
Total liabilities and stockholders’ equity | $ 6,246,751 | $ 6,678,715 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 13,515 | $ 14,786 |
Short-term finance receivables allowance | 14,924 | 12,187 |
Long-term finance receivables allowance | $ 6,420 | $ 6,446 |
Preferred stock par value (in dollars per share) | $ 50 | $ 50 |
Preferred stock dividend rate | 4.00% | 4.00% |
Preference stock, par value (in dollars per share) | $ 0 | $ 0 |
Preference stock dividend rate (in dollars per share) | 2.12 | 2.12 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common stock, shares issued (in shares) | 323,337,912 | 323,337,912 |
Treasury stock (in shares) | 136,104,630 | 136,734,174 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 101,727 | $ 114,034 |
Income from discontinued operations | (9,695) | (15,149) |
Restructuring payments | (27,528) | (17,651) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 101,862 | 86,710 |
Stock-based compensation | 9,153 | 12,531 |
Restructuring charges and asset impairments, net | 12,407 | 27,639 |
Gain on sale of technology | 0 | (6,085) |
Changes in operating assets and liabilities, net of acquisitions/divestitures: | ||
Decrease in accounts receivable | 14,323 | 58,263 |
Decrease in finance receivables | 60,563 | 76,915 |
Increase in inventories | (6,706) | (3,762) |
Increase in other current assets and prepayments | (33,041) | (18,728) |
Decrease in accounts payable and accrued liabilities | (47,118) | (69,146) |
Increase (decrease) in current and non-current income taxes | 4,570 | (40,856) |
Decrease in advance billings | (22,643) | (22,972) |
Other, net | (24,612) | (11,192) |
Net cash provided by operating activities - continuing operations | 133,262 | 170,551 |
Net cash provided by operating activities - discontinued operations | 41,772 | 14,096 |
Net cash provided by operating activities | 175,034 | 184,647 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (48,303) | (70,405) |
Proceeds from sales/maturities of available-for-sale securities | 36,157 | 61,913 |
Net activity from short-term and other investments | 10,959 | (131,303) |
Capital expenditures | (100,022) | (75,844) |
Acquisition of businesses, net of cash acquired | (2,407) | (7,889) |
Change in reserve account deposits | 5,959 | 2,514 |
Other investing activities | (2,500) | (3,000) |
Net cash used in investing activities - continuing operations | (100,157) | (224,014) |
Net cash used in investing activities - discontinued operations | (1,169) | (777) |
Net cash used in investing activities - continuing operations | (101,326) | (224,791) |
Cash flows from financing activities: | ||
Proceeds from the issuance of long-term debt | 0 | 395,772 |
Principal payments of long-term debt | (260,099) | (229,323) |
Dividends paid to stockholders | (70,113) | (69,527) |
Other financing activities | (49,606) | (5,551) |
Net cash (used in) provided by financing activities | (379,818) | 91,371 |
Effect of exchange rate changes on cash and cash equivalents | (13,041) | 24,815 |
(Decrease) increase in cash and cash equivalents | (319,151) | 76,042 |
Cash and cash equivalents at beginning of period | 1,009,021 | 764,522 |
Cash and cash equivalents at end of period | 689,870 | 840,564 |
Cash interest paid | 89,339 | 82,405 |
Cash income tax payments, net of refunds | $ 19,244 | $ 78,649 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Pitney Bowes Inc. (we, us, our, or the company), was incorporated in the state of Delaware in 1920. We are a global technology company offering innovative products and solutions that help our clients navigate the complex world of commerce. We provide innovative products and solutions for mailing, shipping and cross border ecommerce that enable the sending of packages globally and products and solutions for customer information management, location intelligence and customer engagement to help our clients market to their customers. Clients around the world rely on our products, solutions and services. For more information about us, our products, services and solutions, visit www.pb.com . The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2017 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In management's opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary to fairly state our financial position, results of operations and cash flows for the periods presented have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2018 . These statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2017 (2017 Annual Report). During the quarter, we entered into an agreement to sell our Document Messaging Technologies production mail business and supporting software (collectively, the Production Mail Business). Accordingly, the Production Mail Business is now reported as a discontinued operation in our condensed consolidated financial statements. Prior periods have been recast to conform to the current period presentation. See Note 4 for further details. Accounting Pronouncements Adopted on January 1, 2018 We adopted Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606), 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 consideration the company expects to receive in exchange for those goods and services. See Note 2 for more information on the adoption of ASC 606. We adopted 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 prior guidance, the tax effects of transfers were deferred until the transferred asset was sold or otherwise recovered through use. We recognized the cumulative effect of initially applying this standard as a net reduction of $3 million to opening retained earnings. We adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires only the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs. Other components of the net periodic benefit cost are now presented separately in other components of net pension and postretirement costs in the Consolidated Statements of Income. Prior period information has been recast to conform to the current period presentation. We adopted 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. There was no impact on our consolidated financial statements. We early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU changes the recognition and presentation requirements as well as the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing and hedge documentation. There was no impact on our consolidated financial statements. We adopted 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. There was no impact on our consolidated financial statements. We adopted 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. There was no impact on our consolidated financial statements. New Accounting Pronouncements - Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . The ASU permits a reclassification of the disproportionate income tax effects of the 2017 Tax Cuts and Jobs Act (the Act) on items within AOCI to retained earnings. The ASU also requires certain new disclosures, some of which are applicable for all companies. 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 2017-08, 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 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 this standard will have 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Adoption of ASC 606 We adopted ASU 2014-09, Revenue from Contracts with Customers (ASC 606) using the modified retrospective approach. Prior period information was not restated and continues to be reported under the accounting standards in effect for those periods. We recognized a cumulative effect adjustment from the adoption of this standard that reduced opening retained earnings by $9 million . Significant components of the cumulative effect adjustment include: • The write-off of previously capitalized deferred marketing costs that did not meet the criteria for capitalization under ASC 606. • The capitalization of certain costs to obtain a contract, primarily sales commissions, that are permitted to be capitalized under ASC 606. • The establishment of deferred revenue related to the early renewal of software and data license contracts with terms beginning in 2018, as ASC 606 requires revenue recognition at the commencement of the license term. • The write-off of deferred revenues and related costs for certain software licenses bundled with a lease that are recognized at time of delivery under ASC 606. • The write-off of advance billings related to certain software data products that are recognized upon delivery under ASC 606. The impact on our consolidated financial statements as if they were presented under the prior guidance is as follows: Three months ended June 30, 2018 Six months ended June 30, 2018 As reported Prior guidance Total increase (decrease) As reported Prior guidance Total increase (decrease) Income Statement Total revenue $ 861,436 $ 852,781 $ 8,655 $ 1,742,384 $ 1,724,060 $ 18,324 Equipment sales $ 105,750 $ 106,301 $ (551 ) $ 216,121 $ 217,533 $ (1,412 ) Software $ 91,702 $ 82,054 $ 9,648 $ 167,996 $ 147,329 $ 20,667 Business services $ 367,876 $ 368,318 $ (442 ) $ 754,414 $ 755,345 $ (931 ) Total costs and expenses $ 807,972 $ 810,342 $ (2,370 ) $ 1,627,631 $ 1,629,841 $ (2,210 ) Cost of equipment sales $ 47,106 $ 47,035 $ 71 $ 93,160 $ 93,219 $ (59 ) Cost of software $ 26,459 $ 25,769 $ 690 $ 50,514 $ 48,542 $ 1,972 Selling, general and administrative $ 282,456 $ 285,587 $ (3,131 ) $ 577,894 $ 582,017 $ (4,123 ) Income from continuing operations before taxes $ 53,464 $ 42,439 $ 11,025 $ 114,753 $ 94,221 $ 20,532 Provision for income taxes $ 6,458 $ 3,640 $ 2,818 $ 22,721 $ 17,434 $ 5,287 Net income from continuing operations $ 47,006 $ 38,799 $ 8,207 $ 92,032 $ 76,787 $ 15,245 Basic earnings per share attributable to common stockholders - continuing operations $ 0.25 $ 0.21 $ 0.04 $ 0.49 $ 0.41 $ 0.08 Diluted earnings per share attributable to common stockholders - continuing operations $ 0.25 $ 0.22 $ 0.03 $ 0.49 $ 0.41 $ 0.08 The most significant change to the Consolidated Statements of Income for the three and six months ended June 30, 2018, was due to higher software revenue of $10 million and $21 million , respectively, under ASC 606 primarily as a result of the change in timing of revenue recognition related to certain software licenses and data subscriptions. These higher software revenues also resulted in higher income from continuing operations before taxes of $9 million and $19 million for the three and six months ended June 30, 2018, respectively. June 30, 2018 As reported Prior guidance Total increase (decrease) Balance Sheet Total Assets $ 6,246,751 $ 6,250,943 $ (4,192 ) Accounts receivable $ 408,703 $ 407,204 $ 1,499 Current income taxes $ 39,100 $ 39,298 $ (198 ) Other current assets and prepayments $ 102,104 $ 102,760 $ (656 ) Assets of discontinued operations $ 313,356 $ 312,922 $ 434 Noncurrent income taxes $ 54,099 $ 54,429 $ (330 ) Other assets $ 528,945 $ 533,886 $ (4,941 ) Total Liabilities $ 6,050,834 $ 6,062,221 $ (11,387 ) Accounts payable and accrued liabilities $ 1,349,344 $ 1,347,837 $ 1,507 Current income taxes $ 5,686 $ 43 $ 5,643 Advance billings $ 237,709 $ 250,948 $ (13,239 ) Liabilities of discontinued operations $ 84,219 $ 84,132 $ 87 Deferred taxes on income $ 234,190 $ 238,539 $ (4,349 ) Other noncurrent liabilities $ 461,074 $ 462,110 $ (1,036 ) Total Stockholders' equity $ 195,917 $ 188,722 $ 7,195 Retained earnings $ 5,248,991 $ 5,241,824 $ 7,167 Accumulated other comprehensive loss $ (810,251 ) $ (810,279 ) $ 28 The most significant changes to the Consolidated Balance Sheet at June 30, 2018 were: • Higher accounts receivable, net and accounts payable and accrued liabilities due to reserves for refunds to customers that were recorded in accounts receivable, net under previous guidance. • Lower other assets primarily due to the write-off of deferred marketing costs at January 1, 2018, offset by the capitalization of certain costs to obtain a contract, including sales commissions and other contract costs. • Lower advance billings and other noncurrent liabilities due to the write-off of deferred revenue from software licenses bundled with leases and data products, which are now recognized at time of delivery rather than ratably under previous guidance. Cash Flow Statement The adoption of ASC 606 had no impact on our Consolidated Statements of Cash Flows. Significant Accounting Policies The most significant impact of ASC 606 on our consolidated financial statements will be in the timing of recognizing certain revenues and costs to obtain a contract related to software and software related products. We will continue to recognize revenue from equipment sales under sales-type leases and related financing income and rental of postage meters and mailing equipment in accordance with ASC 840, Leases. We applied the following practical expedients and policy elections when adopting ASC 606: • Costs incurred to obtain a contract with a customer are expensed if the amortization period is one year or less. • With the exception of certain services contracts, all taxes assessed by government authorities, such as sales and use taxes, value added taxes and excise taxes, are excluded from the transaction price. • The transaction price is not adjusted for a significant financing component when a performance obligation is satisfied within one year. • Revenue is recognized based on the amount billable to the customer when that amount corresponds to the value transferred to the customer. • Shipping and handling activities are accounted for as a fulfillment activity rather than a separate performance obligation. • We reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price. Significant changes to accounting policies disclosed in our 2017 Annual Report due to the adoption of ASC 606 are discussed below. Software Sales and Integration Services Our software products include software and data licenses that are either “right to use” or “right to access”. A majority of our software and data license products are considered right to use and are generally distinct from other promised goods and services within a contract. Revenue for right to use software and data licenses is recognized at a point in time when control has transferred to the customer, which is generally upon delivery or acceptance for those licenses requiring significant integration or customization. Revenue from renewals are recognized at the beginning of the license term. Right to access licenses generally bundle certain software licenses, data licenses and data updates that are highly interdependent and the updates are critical to the continued use of the license by the customer. Revenue for these arrangements are deferred and recognized ratably over the license term. We generally invoice customers upon delivery of our software and data licenses. Data contracts that include both data and data updates are invoiced in one or more equal installments. A contract asset is recognized on data licenses for which consideration will be received in future periods. We allocate the transaction price based on relative standalone selling prices, which are generally based on observable selling prices in standalone transactions for our data products, maintenance and professional services. We estimate the standalone selling prices for our software licenses using the residual approach, as the selling prices are highly variable and when observable standalone selling prices exist for the other goods and services in the contract. We often bundle software licenses with lease contracts. Revenue is recognized upon delivery of those software licenses considered distinct and functional in nature. Costs to Obtain a Contract and Marketing Costs Certain incremental costs to obtain a contract are capitalized if we expect the benefit of those costs to be realized over a period greater than one year. These costs primarily relate to sales commission on multi-year equipment and software support service contracts. These costs are amortized in a manner consistent with the timing of the related revenue over the contract performance period or longer, if renewals are expected and the renewal commission is not commensurate with the initial commission. Amortization expense for the three and six months ended June 30, 2018 was $3 million and $ 7 million , respectively, and is included in selling, general and administrative expenses. Unamortized contract costs at June 30, 2018 were $ 26 million and are included in other assets. Certain marketing costs associated with the acquisition of new customers are expensed as incurred since these costs do not meet the criteria of a cost to obtain a contract. Revenue from Contracts with Customers The following tables disaggregate our revenue by major source: Three months ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Total Revenue from sales and services (ASC 606) Revenue from leasing transactions and financing Total Consolidated Revenue Equipment sales $ — $ — $ 15,303 $ 11,654 $ — $ 26,957 $ 78,793 $ 105,750 Supplies — — 36,271 19,186 — 55,457 — 55,457 Software — — — — 91,702 91,702 — 91,702 Rentals — — 5,121 2,139 — 7,260 84,549 91,809 Financing — — 15,714 2,866 — 18,580 58,091 76,671 Support services — — 50,902 21,269 — 72,171 72,171 Business services 239,100 122,730 4,453 1,593 — 367,876 — 367,876 $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 $ 221,433 $ 861,436 Revenue from sales and services (ASC 606) $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 $ — $ 640,003 Revenue from leasing transactions and financing — — 186,782 34,651 — — 221,433 221,433 Total revenue $ 239,100 $ 122,730 $ 314,546 $ 93,358 $ 91,702 $ 640,003 $ 221,433 $ 861,436 Timing of revenue recognition (ASC 606) Products/services transferred at a point in time $ — $ — $ 51,574 $ 30,840 $ 38,963 $ 121,377 Products/services transferred over time 239,100 122,730 76,190 27,867 52,739 518,626 Total revenue $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 Six months ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Total Revenue from sales and services (ASC 606) Revenue from leasing transactions and financing Total Consolidated Revenue Equipment sales $ — $ — $ 32,449 $ 25,018 $ — $ 57,467 $ 158,654 $ 216,121 Supplies — — 75,223 40,227 — 115,450 — 115,450 Software — — — — 167,996 167,996 — 167,996 Rentals — — 10,832 4,305 — 15,137 171,298 186,435 Financing — — 32,290 5,842 — 38,132 118,642 156,774 Support services — — 101,647 43,547 — 145,194 — 145,194 Business services 485,690 257,188 8,255 3,281 — 754,414 — 754,414 $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 $ 448,594 $ 1,742,384 Revenue from sales and services (ASC 606) $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 $ — $ 1,293,790 Revenue from leasing transactions and financing — — 379,419 69,175 — — 448,594 448,594 Total revenue $ 485,690 $ 257,188 $ 640,115 $ 191,395 $ 167,996 $ 1,293,790 $ 448,594 $ 1,742,384 Timing of revenue recognition (ASC 606) Products/services transferred at a point in time $ — $ — $ 107,672 $ 65,245 $ 65,020 $ 237,937 Products/services transferred over time 485,690 257,188 153,024 56,975 102,976 1,055,853 Total revenue $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 Our performance obligations are as follows: Equipment sales and supplies: Our performance obligations generally include the sale of mailing equipment, excluding sales-type leases, and supplies. We recognize revenue upon delivery for self-install equipment and supplies and upon acceptance or installation for other equipment. We provide a warranty that our equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation. Software: Our performance obligations include the sale of software licenses, maintenance, data products and professional services. Revenue for licenses is generally recognized upon delivery or over time for those licenses that require critical updates over the term of the contract. Rentals: Our performance obligations include the fees associated with postage refills for meters. Financing: Our performance obligations for financing revenue include services under our equipment replacement program. The fees received for this program are recognized ratably over the contract term . Support services: Our performance obligations include providing maintenance and professional services for our equipment. Maintenance contract revenue is recognized ratably over the contract period and revenue for professional services is recognized when services are complete. Business services: Our performance obligations include mail processing services and ecommerce solutions. Revenue is recognized as the services are provided as these services represent a series of distinct services that are similar and the revenue is recognized as the services are provided. Revenue from leasing transactions and financing include revenue from sales-type leases, finance income and late fees that are not accounted for under ASC 606. Contract Assets and Advance Billings from Contracts with Customers June 30, 2018 January 1, 2018 (1) Total increase (decrease) Contracts assets, current $ 8,213 $ 5,075 $ 3,138 Contracts assets, noncurrent $ 4,006 $ 648 $ 3,358 Advance billings, current $ 186,778 $ 209,098 $ (22,320 ) Advance billings, noncurrent $ 14,658 $ 17,765 $ (3,107 ) (1) Balances adjusted for the cumulative effect of accounting change Contract assets are recorded in other current assets and prepayments and other assets, respectively. Advance billings are recorded in advance billings and other noncurrent liabilities. Contract Assets We record contract assets when performance obligations are satisfied in advance of invoicing the customer when the right to consideration is conditional on the satisfaction of another performance obligation within a contract. The net increase is driven by revenue recognized on data contracts during the second quarter, for which consideration will be invoices in future periods. Advance Billings from Contracts with Customers Advance billings are recorded when cash payments are due in advance of our performance. Items in advance billings primarily relate to support services on equipment and software licenses, subscription services and certain software data products. Revenue is recognized ratably over the contract term. The net decrease in advance billings at June 30, 2018 is primarily driven by revenues recognized during the period, which includes $128 million of advance billings at the beginning of the period, partially offset by advance billings in the quarter. Future Performance Obligations The transaction prices allocated to future performance obligations will be recognized as follows: Total Remainder of 2018 2019 2020-2025 North America Mailing (1) $ 233,955 $ 57,793 $ 89,529 $ 86,633 International Mailing (1) 117,562 29,432 36,415 51,715 Software Solutions (2) 102,383 41,674 36,120 24,589 Total $ 453,900 $ 128,899 $ 162,064 $ 162,937 (1) Revenue streams bundled with our leasing contracts, primarily maintenance and other services (2) Multiple-year software maintenance contracts, certain software and data licenses and data updates The table above does not include revenue related to performance obligations for contracts with terms less than 12 months and expected consideration for those performance obligations where revenue is recognized based on the amount billable to the customer. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In January 2018, we revised our business reporting groups to reflect how we manage these groups and clients served in each market. The Commerce Services group was formed and includes our Global Ecommerce and Presort Services segments. We have classified the operating results of the Production Mail Business as discontinued operations and as such, segment operating results for prior years have been recast to conform to this presentation. The principal products and services of each of our reportable segments are as follows: Commerce Services: Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions, including fulfillment and returns. Presort Services : Includes revenue and related expenses from sortation services which allow clients to qualify large mail volumes for postal worksharing discounts. 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. Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information, and location intelligence software and data solutions and related support services. We determine segment earnings before interest and taxes (EBIT) by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and other items, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level 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. Revenue and EBIT by business segment is presented below: Revenue Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Global Ecommerce $ 239,100 $ 94,506 $ 485,690 $ 182,658 Presort Services 122,730 118,452 257,188 251,129 Commerce Services 361,830 212,958 742,878 433,787 North America Mailing 314,546 340,949 640,115 696,902 International Mailing 93,358 95,425 191,395 188,624 Small & Medium Business Solutions 407,904 436,374 831,510 885,526 Software Solutions 91,702 81,081 167,996 154,280 Total revenue $ 861,436 $ 730,413 $ 1,742,384 $ 1,473,593 EBIT Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Global Ecommerce $ (5,993 ) $ (4,030 ) $ (13,704 ) $ (8,300 ) Presort Services 12,565 19,270 39,591 49,987 Commerce Services 6,572 15,240 25,887 41,687 North America Mailing 115,193 120,797 234,763 262,041 International Mailing 13,215 14,020 29,246 27,430 Small & Medium Business Solutions 128,408 134,817 264,009 289,471 Software Solutions 18,433 5,091 20,925 6,397 Total segment EBIT 153,413 155,148 310,821 337,555 Reconciling items: Unallocated corporate expenses (46,477 ) (52,549 ) (97,561 ) (110,151 ) Interest, net (41,969 ) (40,443 ) (85,047 ) (79,093 ) Restructuring charges and asset impairments, net (11,503 ) (25,990 ) (12,407 ) (27,639 ) Gain from the sale of technology — 6,085 — 6,085 Transaction costs — — (1,053 ) — Income from continuing operations before income taxes 53,464 42,251 114,753 126,757 Provision for income taxes 6,458 790 22,721 27,872 Income from discontinued operations, net of tax 1,208 7,440 9,695 15,149 Net income $ 48,214 $ 48,901 $ 101,727 $ 114,034 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 2, 2018, we completed the sale of the Production Mail Business, other than in certain non-U.S. jurisdictions, to an affiliate of Platinum Equity, LLC, a leading global private equity firm. Cash proceeds received at the closing were $316 million . We expect to close the other non-U.S. jurisdiction sales in the third and fourth quarters, subject to local regulatory requirements. On August 1, 2018, following the completion of certain local requirements in a non-U.S. jurisdiction, we received an additional $24 million . Net proceeds from the sale after the payment of closing costs, transaction fees and taxes are estimated to be approximately $270 million . In connection with the sale of the Production Mail Business, we entered into Transition Services Agreements (TSAs) with the purchaser whereby we will perform certain support functions for periods of a year or less. None of these TSAs will have a material effect on our financial performance. Selected financial information of the Production Mail Business included in discontinued operations is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 89,201 $ 90,958 $ 191,435 $ 184,418 Earnings from discontinued operations $ 8,278 $ 11,602 $ 21,620 $ 23,645 Transaction costs (7,238 ) — (8,777 ) — Income from discontinued operations before taxes 1,040 11,602 12,843 23,645 Tax (benefit) provision (168 ) 4,162 3,148 8,496 Income from discontinued operations, net of tax $ 1,208 $ 7,440 $ 9,695 $ 15,149 The assets and liabilities of the Production Mail Business have been classified as assets of discontinued operations and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets. The major categories of assets and liabilities of the Production Mail Business included in assets of discontinued operations and liabilities of discontinued operations are as follows: June 30, 2018 December 31, 2017 Accounts receivable, net $ 69,924 $ 97,402 Inventories 54,808 48,910 Other current assets and prepayments 6,653 3,365 Property, plant and equipment, net 3,185 5,541 Rental property and equipment, net 1,041 1,786 Goodwill 176,501 177,799 Other assets 1,244 45 Total assets of discontinued operations $ 313,356 $ 334,848 Accounts payable and accrued liabilities $ 34,244 $ 36,592 Advance billings 44,694 30,607 Other noncurrent liabilities 5,281 5,609 Total liabilities of discontinued operations $ 84,219 $ 72,808 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income from continuing operations $ 47,006 $ 41,461 $ 92,032 $ 98,885 Income from discontinued operations, net of tax 1,208 7,440 9,695 15,149 Net income (numerator for diluted EPS) 48,214 48,901 101,727 114,034 Less: Preference stock dividend 8 10 16 19 Income attributable to common stockholders (numerator for basic EPS) $ 48,206 $ 48,891 $ 101,711 $ 114,015 Denominator: Weighted-average shares used in basic EPS 187,180 186,333 187,004 186,136 Effect of dilutive shares 934 1,044 1,053 809 Weighted-average shares used in diluted EPS 188,114 187,377 188,057 186,945 Basic earnings per share: Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53 Discontinued operations 0.01 0.04 0.05 0.08 Net Income $ 0.26 $ 0.26 $ 0.54 $ 0.61 Diluted earnings per share: Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53 Discontinued operations 0.01 0.04 0.05 0.08 Net Income $ 0.26 $ 0.26 $ 0.54 $ 0.61 Anti-dilutive shares not used in calculating diluted weighted-average shares 12,453 9,916 11,959 11,379 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the last-in, first-out (LIFO) basis for most U.S. inventories and the first-in, first-out (FIFO) basis for most non-U.S. inventories. Inventories at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, Raw materials $ 13,502 $ 11,767 Supplies and service parts 21,822 21,475 Finished products 19,461 13,261 Inventory at FIFO cost 54,785 46,503 Excess of FIFO cost over LIFO cost (5,734 ) (5,734 ) Total inventory, net $ 49,051 $ 40,769 |
Finance Assets
Finance Assets | 6 Months Ended |
Jun. 30, 2018 | |
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, clients may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Client acquisition costs are expensed as incurred. Finance receivables at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 December 31, 2017 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,004,241 $ 273,118 $ 1,277,359 $ 1,023,549 $ 292,059 $ 1,315,608 Unguaranteed residual values 62,358 13,391 75,749 74,093 14,202 88,295 Unearned income (209,870 ) (58,527 ) (268,397 ) (216,720 ) (62,325 ) (279,045 ) Allowance for credit losses (11,129 ) (2,406 ) (13,535 ) (7,721 ) (2,794 ) (10,515 ) Net investment in sales-type lease receivables 845,600 225,576 1,071,176 873,201 241,142 1,114,343 Loan receivables Loan receivables 313,049 32,941 345,990 339,373 34,492 373,865 Allowance for credit losses (6,869 ) (940 ) (7,809 ) (7,098 ) (1,020 ) (8,118 ) Net investment in loan receivables 306,180 32,001 338,181 332,275 33,472 365,747 Net investment in finance receivables $ 1,151,780 $ 257,577 $ 1,409,357 $ 1,205,476 $ 274,614 $ 1,480,090 Allowance for Credit Losses We provide an allowance for probable credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for 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. Activity in the allowance for credit losses for the six months ended June 30, 2018 and 2017 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2018 $ 7,721 $ 2,794 $ 7,098 $ 1,020 $ 18,633 Amounts charged to expense 5,946 545 7,008 250 13,749 Write-offs and other (2,538 ) (933 ) (7,237 ) (330 ) (11,038 ) Balance at June 30, 2018 $ 11,129 $ 2,406 $ 6,869 $ 940 $ 21,344 Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2017 $ 8,247 $ 2,647 $ 8,517 $ 1,089 $ 20,500 Amounts charged to expense 5,182 466 2,891 450 8,989 Write-offs and other (4,973 ) (617 ) (3,905 ) (382 ) (9,877 ) Balance at June 30, 2017 $ 8,456 $ 2,496 $ 7,503 $ 1,157 $ 19,612 Aging of Receivables The aging of gross finance receivables at June 30, 2018 and December 31, 2017 was as follows: June 30, 2018 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 961,356 $ 266,146 $ 305,116 $ 32,706 $ 1,565,324 > 90 days 42,885 6,972 7,933 235 58,025 Total $ 1,004,241 $ 273,118 $ 313,049 $ 32,941 $ 1,623,349 Past due amounts > 90 days Still accruing interest $ 6,297 $ 1,672 $ — $ — $ 7,969 Not accruing interest 36,588 5,300 7,933 235 50,056 Total $ 42,885 $ 6,972 $ 7,933 $ 235 $ 58,025 December 31, 2017 Sales-type Lease Receivables Loan Receivables North America International North America International Total 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 Credit Quality The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client's financial condition and, when applicable, payment history. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes ensure that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed. We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. We do not use a third party to score our International 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 June 30, 2018 and December 31, 2017 by relative risk class based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months. • Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers. • Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers. • High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers. June 30, December 31, Sales-type lease receivables Low $ 817,554 $ 819,776 Medium 130,175 148,000 High 20,663 21,728 Not Scored 35,849 34,045 Total $ 1,004,241 $ 1,023,549 Loan receivables Low $ 244,570 $ 262,646 Medium 50,711 56,744 High 5,593 6,791 Not Scored 12,175 13,192 Total $ 313,049 $ 339,373 |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill Acquisitions In October 2017, we acquired Newgistics for $471 million , net of cash acquired. The results of Newgistics are included in our consolidated operating results from the date of acquisition. Our consolidated revenue for the three and six months ended June 30, 2018 includes $127 million and $257 million , respectively, from Newgistics. On a supplemental pro forma basis, had we acquired Newgistics on January 1, 2017, our revenues would have been $115 million and $234 million higher for the three and six months ended June 30, 2017, respectively. The impact on our earnings would not have been material. Intangible Assets Intangible assets at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 482,092 $ (265,904 ) $ 216,188 $ 504,716 $ (271,066 ) $ 233,650 Software & technology 166,100 (141,338 ) 24,762 167,122 (138,724 ) 28,398 Trademarks & other 40,403 (32,228 ) 8,175 40,649 (30,511 ) 10,138 Total intangible assets $ 688,595 $ (439,470 ) $ 249,125 $ 712,487 $ (440,301 ) $ 272,186 Amortization expense was $11 million and $8 million for the three months ended June 30, 2018 and 2017 , respectively and $22 million and $17 million for the six months ended June 30, 2018 and 2017, respectively. Future amortization expense as of June 30, 2018 was as follows: Remaining for year ending December 31, 2018 $ 25,997 Year ending December 31, 2019 38,023 Year ending December 31, 2020 33,722 Year ending December 31, 2021 30,001 Year ending December 31, 2022 29,012 Thereafter 92,370 Total $ 249,125 Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. Goodwill Changes in the carrying value of goodwill, by reporting segment, for the six months ended June 30, 2018 are shown in the table below. December 31, 2017 Acquisitions Other (1) June 30, Global Ecommerce $ 602,461 $ — $ (653 ) $ 601,808 Presort Services 204,781 2,684 — 207,465 Commerce Services 807,242 2,684 (653 ) 809,273 North America Mailing 368,905 — (354 ) 368,551 International Mailing 158,203 — (5,784 ) 152,419 Small & Medium Business Solutions 527,108 — (6,138 ) 520,970 Software Solutions 440,295 — (2,690 ) 437,605 Total goodwill $ 1,774,645 $ 2,684 $ (9,481 ) $ 1,767,848 (1) Primarily represents foreign currency translation adjustments. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2018 and December 31, 2017 . June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 114,665 $ 328,296 $ — $ 442,961 Equity securities — 24,637 — 24,637 Commingled fixed income securities 1,549 20,795 — 22,344 Government and related securities 123,239 16,429 — 139,668 Corporate debt securities — 71,078 — 71,078 Mortgage-backed / asset-backed securities — 165,835 — 165,835 Derivatives Interest rate swap — 824 — 824 Foreign exchange contracts — 2,673 — 2,673 Total assets $ 239,453 $ 630,567 $ — $ 870,020 Liabilities: Derivatives Foreign exchange contracts $ — $ (178 ) $ — $ (178 ) Total liabilities $ — $ (178 ) $ — $ (178 ) 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 ) 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 are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities. • Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads 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 or external price/spread data. These securities are classified as Level 2. Available-For-Sale Securities Certain investment securities are classified as available-for-sale and recorded at fair value. Unrealized holding gains and losses, net of tax are recorded in AOCI. Available-for-sale investment securities are predominantly held at the Pitney Bowes Bank, whose primary business is to provide financing solutions to clients that rent postage meters and purchase supplies. Available-for-sale securities at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 140,583 $ 1,247 $ (2,162 ) $ 139,668 Corporate debt securities 72,428 268 (1,618 ) 71,078 Commingled fixed income securities 1,619 — (70 ) 1,549 Mortgage-backed / asset-backed securities 168,585 730 (3,480 ) 165,835 Total $ 383,215 $ 2,245 $ (7,330 ) $ 378,130 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 At June 30, 2018 , investment securities in a loss position for 12 or more continuous months had aggregate unrealized holding losses of $6 million and an estimated fair value of $228 million , and investment securities in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $1 million and an estimated fair value of $90 million . At December 31, 2017 , investment securities in a loss position for 12 or more continuous months had aggregate unrealized holding losses of $2 million and an estimated fair value of $116 million , and investment securities in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $1 million and an estimated fair value of $91 million . We have not recognized an other-than-temporary impairment on any of the investment securities in an unrealized loss position because we have the ability and intent to hold these securities until recovery of the unrealized losses and expect to receive the stated principal and interest at maturity. Scheduled maturities of available-for-sale securities at June 30, 2018 were as follows: Amortized cost Estimated fair value Within 1 year $ 56,012 $ 55,705 After 1 year through 5 years 114,973 113,720 After 5 years through 10 years 58,066 56,867 After 10 years 154,164 151,838 Total $ 383,215 $ 378,130 The scheduled maturities of mortgage-backed and asset-backed securities may not coincide with the actual payment as borrowers have the right to prepay obligations. We have not experienced any significant write-offs in our investment portfolio. The majority of our mortgage-backed securities are either guaranteed or supported by the U.S. Government. We have no investments in inactive markets that would warrant a possible change in our pricing methods or classification within the fair value hierarchy. 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 mitigate these exposures 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 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 the anticipated purchase of inventory between affiliates and from third parties. These contracts are designated as cash flow hedges. The effective portion of the gain or loss on cash flow hedges is included in AOCI in the period that the change in fair value occurs and is reclassified to earnings in the period that the hedged item is recorded in earnings. At June 30, 2018 and December 31, 2017 , we had outstanding contracts associated with these anticipated transactions with notional amounts of $11 million and $ 10 million , respectively. The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties. Interest Rate Swap We have an interest rate swap with a notional amount of $300 million to mitigate the interest rate risk associated with $300 million of variable-rate term loans. 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 1-month LIBOR. The variable interest rate resets monthly. The valuation of our interest rate swap is based on the income approach using a model with inputs that are observable or that can be derived from or corroborated by observable market data. The fair value of derivative instruments at June 30, 2018 and December 31, 2017 was as follows: Designation of Derivatives Balance Sheet Location June 30, December 31, Derivatives designated as hedging instruments Foreign exchange contracts Other current assets and prepayments $ 114 $ 57 Accounts payable and accrued liabilities (39 ) (144 ) Interest rate swap Other assets 824 1,776 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 2,559 65 Accounts payable and accrued liabilities (139 ) (191 ) Total derivative assets $ 3,497 $ 1,898 Total derivative liabilities (178 ) (335 ) Total net derivative asset $ 3,319 $ 1,563 The majority of the amounts included in AOCI at June 30, 2018 will be recognized in earnings within the next 12 months. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges. The following represents the results of cash flow hedging relationships for the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 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 2018 2017 2018 2017 Foreign exchange contracts $ 119 $ (599 ) Revenue $ 79 $ 34 Cost of sales (1 ) 36 Interest rate swap (771 ) (147 ) Interest Expense — — $ (652 ) $ (746 ) $ 78 $ 70 Six Months Ended June 30, Derivative Gain (Loss) Recognized in AOCL (Effective Portion) Location of Gain (Loss) (Effective Portion) Gain (Loss) Reclassified from AOCL to Earnings (Effective Portion) Derivative Instrument 2018 2017 2018 2017 Foreign exchange contracts $ 154 $ (549 ) Revenue $ 76 $ 6 Cost of sales (85 ) 148 Interest rate swap (952 ) 321 Interest Expense — — $ (798 ) $ (228 ) $ (9 ) $ 154 We 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 intercompany loans and interest and the corresponding mark-to-market adjustment on derivatives are recorded in earnings. The table below represents the mark-to-market adjustments of non-designated derivative instruments for the three and six months ended June 30, 2018 and 2017 . All outstanding contracts at June 30, 2018 mature within 12 months. Three Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2018 2017 Foreign exchange contracts Selling, general and administrative expense $ (14,828 ) $ 789 Six Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2018 2017 Foreign exchange contracts Selling, general and administrative expense $ (18,396 ) $ (1,061 ) Credit-Risk-Related Contingent Features Certain derivative instruments contain credit-risk-related contingent features that require us to post collateral based on a combination of our long-term senior unsecured debt ratings and the net fair value of our derivatives. At June 30, 2018 , we had $4 million of cash collateral posted with certain counterparties. Due to the change in net fair value of our derivatives, the amount was returned in full on July 2, 2018. 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 carrying value and estimated fair value of our debt at June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 Carrying value $ 3,572,809 $ 3,830,335 Fair value $ 3,381,964 $ 3,718,986 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Activity in our restructuring reserves for the six months ended June 30, 2018 and 2017 was as follows: Severance and benefits costs Other exit costs Total Balance at January 1, 2018 $ 42,151 $ 1,569 $ 43,720 Expenses, net 7,990 4,417 12,407 Cash payments (26,942 ) (586 ) (27,528 ) Balance at June 30, 2018 $ 23,199 $ 5,400 $ 28,599 Balance at January 1, 2017 $ 28,234 $ 281 $ 28,515 Expenses, net 22,489 1,560 24,049 Cash payments (17,154 ) (497 ) (17,651 ) Balance at June 30, 2017 $ 33,569 $ 1,344 $ 34,913 The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 months; however, 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 In 2017, we recorded asset impairment charges of $4 million . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt at June 30, 2018 and December 31, 2017 consisted of the following: Interest rate June 30, 2018 December 31, 2017 Notes due March 2018 5.60% $ — $ 250,000 Notes due March 2019 6.25% 300,000 300,000 Notes due September 2020 3.625% 300,000 300,000 Notes due October 2021 3.625% 600,000 600,000 Notes due May 2022 4.375% 400,000 400,000 Notes due April 2023 4.7% 400,000 400,000 Notes due March 2024 4.625% 500,000 500,000 Notes due January 2037 5.25% 35,841 35,841 Notes due March 2043 6.7% 425,000 425,000 Term loans Variable 640,000 650,000 Other debt 5,378 5,476 Principal amount 3,606,219 3,866,317 Less: unamortized costs, net 33,410 35,982 Total debt 3,572,809 3,830,335 Less: current portion long-term debt 334,999 271,057 Long-term debt $ 3,237,810 $ 3,559,278 The interest rate on certain notes and term loans are subject to adjustment based on changes in our credit ratings. During the quarter, Standard & Poor's lowered our corporate credit rating from BBB- to BB+. As a result, the interest rate on the May 2022 Notes and term loans increased 0.25% and the interest rate on the September 2020 notes, the October 2021 notes, and the April 2023 notes will increase 0.25% effective after the next interest payment date. During the year, we repaid the $250 million of 5.6% Notes that matured in March 2018 and $10 million of principal on our term loans. On August 2, 2018, we redeemed the $300 million 6.25% Notes due March 2019. |
Pensions and Other Benefit Prog
Pensions and Other Benefit Programs | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Programs | Pensions and Other Benefit Programs The components of net periodic benefit cost (income) were as follows: Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Service cost $ 9 $ 34 $ 575 $ 559 $ 405 $ 434 Interest cost 15,108 17,121 4,591 4,640 1,607 1,770 Expected return on plan assets (25,119 ) (24,369 ) (9,118 ) (7,961 ) — — Amortization of transition credit — — (2 ) (2 ) — — Amortization of prior service (credit) cost (15 ) (15 ) (18 ) (17 ) 88 74 Amortization of net actuarial loss 7,628 7,229 1,870 1,892 881 905 Net periodic benefit (income) cost $ (2,389 ) $ — $ (2,102 ) $ (889 ) $ 2,981 $ 3,183 Contributions to benefit plans $ 1,906 $ 1,046 $ 769 $ 1,319 $ 4,316 $ 4,426 Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Service cost $ 46 $ 64 $ 1,164 $ 1,101 $ 811 $ 853 Interest cost 30,724 34,366 9,287 9,184 3,210 3,541 Expected return on plan assets (50,543 ) (48,917 ) (18,304 ) (15,742 ) — — Amortization of transition credit — — (3 ) (4 ) — — Amortization of prior service (credit) cost (30 ) (30 ) (37 ) (35 ) 176 148 Amortization of net actuarial loss 15,704 14,497 3,783 3,926 1,815 1,789 Net periodic benefit (income) cost $ (4,099 ) $ (20 ) $ (4,110 ) $ (1,570 ) $ 6,012 $ 6,331 Contributions to benefit plans $ 3,194 $ 2,594 $ 9,979 $ 10,391 $ 9,111 $ 9,124 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended June 30, 2018 and 2017 was 12.1% and 1.9% , respectively, and the effective tax rate for the six months ended June 30, 2018 and 2017 was 19.8% and 22.0% , respectively. The effective tax rate for the six months ended June 30, 2018 and 2017 included a $2 million and $4 million charge, respectively, from the write-off of deferred tax assets associated with the expiration of out-of-the-money vested stock options and the vesting of restricted stock. The effective tax rate for the three and six months ended June 30 2018 included a $3 million and $6 million benefit, respectively, from the resolution of certain tax examinations. The effective tax rate for the three and six months ended June 30, 2017 included a $10 million and $14 million benefit, respectively, from the resolution of certain tax examinations. The provisional amounts recorded under Staff Accounting Bulletin No. 118 in 2017 have been adjusted and both the three and six month periods ended June 30, 2018 include a benefit of $9 million related to the re-measurement of deferred tax assets. The amounts recorded as of December 31, 2017 and adjusted June 30, 2018 remain provisional and further adjustments are expected to be made during the measurement period. As is the case with other large corporations, our tax returns are examined by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, it is reasonably possible that the amount of unrecognized tax benefits will decrease in the next 12 months, and this decrease could be up to 20% of our unrecognized tax benefits. The IRS examinations of our consolidated U.S. income tax returns for tax years prior to 2013 are closed to audit; however, various post-2006 U.S. state and local tax returns are still subject to examination. 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, which is closed to audit through the end of 2014, Germany, which is closed to audit through the end of 2012 and the UK, which, except for an item under appeal, is closed to audit through the end of 2015. We also have other less significant tax filings currently subject to examination. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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, customers or others. In management's opinion, the potential liability, if any, that may result from these actions, either individually or collectively, is not reasonably expected to have a material effect on our financial position, results of operations or cash flows. However, as litigation is inherently unpredictable, there can be no assurances in this regard. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Changes in stockholders’ equity for the six months ended June 30, 2018 and 2017 were as follows: Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at December 31, 2017 $ 1 $ 441 $ 323,338 $ 138,367 $ 5,229,584 $ (792,173 ) $ (4,710,997 ) $ 188,561 Cumulative effect of accounting changes — — — — (12,207 ) — — (12,207 ) Net income — — — — 101,727 — — 101,727 Other comprehensive income — — — — — (18,078 ) — (18,078 ) Dividends paid — — — — (70,113 ) — — (70,113 ) Issuance of common stock — — — (24,267 ) — — 21,141 (3,126 ) Conversion to common stock — (26 ) — (521 ) — — 547 — Stock-based compensation expense — — — 9,153 — — — 9,153 Balance at June 30, 2018 $ 1 $ 415 $ 323,338 $ 122,732 $ 5,248,991 $ (810,251 ) $ (4,689,309 ) $ 195,917 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total (deficit) equity Balance at December 31, 2016 $ 1 $ 483 $ 323,338 $ 148,125 $ 5,107,734 $ (940,133 ) $ (4,743,208 ) $ (103,660 ) Net income — — — — 114,034 — — 114,034 Other comprehensive loss — — — — — 80,818 — 80,818 Dividends paid — — — — (69,527 ) — — (69,527 ) Issuance of common stock — — — (28,567 ) — — 23,744 (4,823 ) Conversion to common stock — (20 ) — (398 ) — — 418 — Stock-based compensation expense — — — 12,531 — — — 12,531 Balance at June 30, 2017 $ 1 $ 463 $ 323,338 $ 131,691 $ 5,152,241 $ (859,315 ) $ (4,719,046 ) $ 29,373 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Reclassifications out of AOCI for the three and six months ended June 30, 2018 and 2017 were as follows: Amount Reclassified from AOCI (a) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Gains (losses) on cash flow hedges Revenue $ 79 $ 34 $ 76 $ 6 Cost of sales (1 ) 36 (85 ) 148 Interest expense, net (507 ) (507 ) (1,014 ) (1,014 ) Total before tax (429 ) (437 ) (1,023 ) (860 ) Benefit from income taxes 110 170 261 336 Net of tax $ (319 ) $ (267 ) $ (762 ) $ (524 ) Gains (losses) on available for sale securities Interest expense, net $ 214 $ (117 ) $ 190 $ (226 ) (Provision) benefit from income taxes (54 ) 44 (48 ) 84 Net of tax $ 160 $ (73 ) $ 142 $ (142 ) Pension and Postretirement Benefit Plans (b) Transition credit $ 2 $ 2 $ 3 $ 4 Prior service costs (55 ) (42 ) (109 ) (83 ) Actuarial losses (10,379 ) (10,026 ) (21,302 ) (20,212 ) Total before tax (10,432 ) (10,066 ) (21,408 ) (20,291 ) Benefit from income taxes 2,564 3,442 5,368 6,956 Net of tax $ (7,868 ) $ (6,624 ) $ (16,040 ) $ (13,335 ) (a) Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss). (b) Reclassified from accumulated other comprehensive loss into other components of net pension and postretirement cost. These amounts are included in the computation of net periodic costs (see Note 12 for additional details). Changes in AOCI for the six months ended June 30, 2018 and 2017 were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2018 $ (406 ) $ 1,597 $ (748,800 ) $ (44,564 ) $ (792,173 ) Other comprehensive loss before reclassifications (a) (511 ) (5,154 ) — (29,073 ) (34,738 ) Reclassifications into earnings (a), (b) 762 (142 ) 16,040 — 16,660 Net other comprehensive income (loss) 251 (5,296 ) 16,040 (29,073 ) (18,078 ) Balance at June 30, 2018 $ (155 ) $ (3,699 ) $ (732,760 ) $ (73,637 ) $ (810,251 ) Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2017 $ (1,485 ) $ 120 $ (787,813 ) $ (150,955 ) $ (940,133 ) Other comprehensive (loss) income before reclassifications (a) (141 ) 1,734 (1,482 ) 66,706 66,817 Reclassifications into earnings (a), (b) 524 142 13,335 — 14,001 Net other comprehensive income 383 1,876 11,853 66,706 80,818 Balance at June 30, 2017 $ (1,102 ) $ 1,996 $ (775,960 ) $ (84,249 ) $ (859,315 ) (a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (b) See table above for additional details of these reclassifications. |
Description of Business and B24
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Accounting Pronouncements Adopted on January 1, 2018 We adopted Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606), 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 consideration the company expects to receive in exchange for those goods and services. See Note 2 for more information on the adoption of ASC 606. We adopted 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 prior guidance, the tax effects of transfers were deferred until the transferred asset was sold or otherwise recovered through use. We recognized the cumulative effect of initially applying this standard as a net reduction of $3 million to opening retained earnings. We adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires only the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs. Other components of the net periodic benefit cost are now presented separately in other components of net pension and postretirement costs in the Consolidated Statements of Income. Prior period information has been recast to conform to the current period presentation. We adopted 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. There was no impact on our consolidated financial statements. We early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU changes the recognition and presentation requirements as well as the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing and hedge documentation. There was no impact on our consolidated financial statements. We adopted 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. There was no impact on our consolidated financial statements. We adopted 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. There was no impact on our consolidated financial statements. New Accounting Pronouncements - Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . The ASU permits a reclassification of the disproportionate income tax effects of the 2017 Tax Cuts and Jobs Act (the Act) on items within AOCI to retained earnings. The ASU also requires certain new disclosures, some of which are applicable for all companies. 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 2017-08, 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 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 this standard will have 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. |
Revenue from Contracts with C25
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Pro Forma Impact on Financial Statements | June 30, 2018 As reported Prior guidance Total increase (decrease) Balance Sheet Total Assets $ 6,246,751 $ 6,250,943 $ (4,192 ) Accounts receivable $ 408,703 $ 407,204 $ 1,499 Current income taxes $ 39,100 $ 39,298 $ (198 ) Other current assets and prepayments $ 102,104 $ 102,760 $ (656 ) Assets of discontinued operations $ 313,356 $ 312,922 $ 434 Noncurrent income taxes $ 54,099 $ 54,429 $ (330 ) Other assets $ 528,945 $ 533,886 $ (4,941 ) Total Liabilities $ 6,050,834 $ 6,062,221 $ (11,387 ) Accounts payable and accrued liabilities $ 1,349,344 $ 1,347,837 $ 1,507 Current income taxes $ 5,686 $ 43 $ 5,643 Advance billings $ 237,709 $ 250,948 $ (13,239 ) Liabilities of discontinued operations $ 84,219 $ 84,132 $ 87 Deferred taxes on income $ 234,190 $ 238,539 $ (4,349 ) Other noncurrent liabilities $ 461,074 $ 462,110 $ (1,036 ) Total Stockholders' equity $ 195,917 $ 188,722 $ 7,195 Retained earnings $ 5,248,991 $ 5,241,824 $ 7,167 Accumulated other comprehensive loss $ (810,251 ) $ (810,279 ) $ 28 The impact on our consolidated financial statements as if they were presented under the prior guidance is as follows: Three months ended June 30, 2018 Six months ended June 30, 2018 As reported Prior guidance Total increase (decrease) As reported Prior guidance Total increase (decrease) Income Statement Total revenue $ 861,436 $ 852,781 $ 8,655 $ 1,742,384 $ 1,724,060 $ 18,324 Equipment sales $ 105,750 $ 106,301 $ (551 ) $ 216,121 $ 217,533 $ (1,412 ) Software $ 91,702 $ 82,054 $ 9,648 $ 167,996 $ 147,329 $ 20,667 Business services $ 367,876 $ 368,318 $ (442 ) $ 754,414 $ 755,345 $ (931 ) Total costs and expenses $ 807,972 $ 810,342 $ (2,370 ) $ 1,627,631 $ 1,629,841 $ (2,210 ) Cost of equipment sales $ 47,106 $ 47,035 $ 71 $ 93,160 $ 93,219 $ (59 ) Cost of software $ 26,459 $ 25,769 $ 690 $ 50,514 $ 48,542 $ 1,972 Selling, general and administrative $ 282,456 $ 285,587 $ (3,131 ) $ 577,894 $ 582,017 $ (4,123 ) Income from continuing operations before taxes $ 53,464 $ 42,439 $ 11,025 $ 114,753 $ 94,221 $ 20,532 Provision for income taxes $ 6,458 $ 3,640 $ 2,818 $ 22,721 $ 17,434 $ 5,287 Net income from continuing operations $ 47,006 $ 38,799 $ 8,207 $ 92,032 $ 76,787 $ 15,245 Basic earnings per share attributable to common stockholders - continuing operations $ 0.25 $ 0.21 $ 0.04 $ 0.49 $ 0.41 $ 0.08 Diluted earnings per share attributable to common stockholders - continuing operations $ 0.25 $ 0.22 $ 0.03 $ 0.49 $ 0.41 $ 0.08 |
Disaggregation of Revenue | The following tables disaggregate our revenue by major source: Three months ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Total Revenue from sales and services (ASC 606) Revenue from leasing transactions and financing Total Consolidated Revenue Equipment sales $ — $ — $ 15,303 $ 11,654 $ — $ 26,957 $ 78,793 $ 105,750 Supplies — — 36,271 19,186 — 55,457 — 55,457 Software — — — — 91,702 91,702 — 91,702 Rentals — — 5,121 2,139 — 7,260 84,549 91,809 Financing — — 15,714 2,866 — 18,580 58,091 76,671 Support services — — 50,902 21,269 — 72,171 72,171 Business services 239,100 122,730 4,453 1,593 — 367,876 — 367,876 $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 $ 221,433 $ 861,436 Revenue from sales and services (ASC 606) $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 $ — $ 640,003 Revenue from leasing transactions and financing — — 186,782 34,651 — — 221,433 221,433 Total revenue $ 239,100 $ 122,730 $ 314,546 $ 93,358 $ 91,702 $ 640,003 $ 221,433 $ 861,436 Timing of revenue recognition (ASC 606) Products/services transferred at a point in time $ — $ — $ 51,574 $ 30,840 $ 38,963 $ 121,377 Products/services transferred over time 239,100 122,730 76,190 27,867 52,739 518,626 Total revenue $ 239,100 $ 122,730 $ 127,764 $ 58,707 $ 91,702 $ 640,003 Six months ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Total Revenue from sales and services (ASC 606) Revenue from leasing transactions and financing Total Consolidated Revenue Equipment sales $ — $ — $ 32,449 $ 25,018 $ — $ 57,467 $ 158,654 $ 216,121 Supplies — — 75,223 40,227 — 115,450 — 115,450 Software — — — — 167,996 167,996 — 167,996 Rentals — — 10,832 4,305 — 15,137 171,298 186,435 Financing — — 32,290 5,842 — 38,132 118,642 156,774 Support services — — 101,647 43,547 — 145,194 — 145,194 Business services 485,690 257,188 8,255 3,281 — 754,414 — 754,414 $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 $ 448,594 $ 1,742,384 Revenue from sales and services (ASC 606) $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 $ — $ 1,293,790 Revenue from leasing transactions and financing — — 379,419 69,175 — — 448,594 448,594 Total revenue $ 485,690 $ 257,188 $ 640,115 $ 191,395 $ 167,996 $ 1,293,790 $ 448,594 $ 1,742,384 Timing of revenue recognition (ASC 606) Products/services transferred at a point in time $ — $ — $ 107,672 $ 65,245 $ 65,020 $ 237,937 Products/services transferred over time 485,690 257,188 153,024 56,975 102,976 1,055,853 Total revenue $ 485,690 $ 257,188 $ 260,696 $ 122,220 $ 167,996 $ 1,293,790 |
Contract Assets and Advance Billings | Contract Assets and Advance Billings from Contracts with Customers June 30, 2018 January 1, 2018 (1) Total increase (decrease) Contracts assets, current $ 8,213 $ 5,075 $ 3,138 Contracts assets, noncurrent $ 4,006 $ 648 $ 3,358 Advance billings, current $ 186,778 $ 209,098 $ (22,320 ) Advance billings, noncurrent $ 14,658 $ 17,765 $ (3,107 ) (1) Balances adjusted for the cumulative effect of accounting change |
Future Performance Obligations | The transaction prices allocated to future performance obligations will be recognized as follows: Total Remainder of 2018 2019 2020-2025 North America Mailing (1) $ 233,955 $ 57,793 $ 89,529 $ 86,633 International Mailing (1) 117,562 29,432 36,415 51,715 Software Solutions (2) 102,383 41,674 36,120 24,589 Total $ 453,900 $ 128,899 $ 162,064 $ 162,937 (1) Revenue streams bundled with our leasing contracts, primarily maintenance and other services (2) Multiple-year software maintenance contracts, certain software and data licenses and data updates |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated Statements | Revenue and EBIT by business segment is presented below: Revenue Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Global Ecommerce $ 239,100 $ 94,506 $ 485,690 $ 182,658 Presort Services 122,730 118,452 257,188 251,129 Commerce Services 361,830 212,958 742,878 433,787 North America Mailing 314,546 340,949 640,115 696,902 International Mailing 93,358 95,425 191,395 188,624 Small & Medium Business Solutions 407,904 436,374 831,510 885,526 Software Solutions 91,702 81,081 167,996 154,280 Total revenue $ 861,436 $ 730,413 $ 1,742,384 $ 1,473,593 EBIT Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Global Ecommerce $ (5,993 ) $ (4,030 ) $ (13,704 ) $ (8,300 ) Presort Services 12,565 19,270 39,591 49,987 Commerce Services 6,572 15,240 25,887 41,687 North America Mailing 115,193 120,797 234,763 262,041 International Mailing 13,215 14,020 29,246 27,430 Small & Medium Business Solutions 128,408 134,817 264,009 289,471 Software Solutions 18,433 5,091 20,925 6,397 Total segment EBIT 153,413 155,148 310,821 337,555 Reconciling items: Unallocated corporate expenses (46,477 ) (52,549 ) (97,561 ) (110,151 ) Interest, net (41,969 ) (40,443 ) (85,047 ) (79,093 ) Restructuring charges and asset impairments, net (11,503 ) (25,990 ) (12,407 ) (27,639 ) Gain from the sale of technology — 6,085 — 6,085 Transaction costs — — (1,053 ) — Income from continuing operations before income taxes 53,464 42,251 114,753 126,757 Provision for income taxes 6,458 790 22,721 27,872 Income from discontinued operations, net of tax 1,208 7,440 9,695 15,149 Net income $ 48,214 $ 48,901 $ 101,727 $ 114,034 |
Reconciliation of EBIT from Segments to Consolidated | EBIT Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Global Ecommerce $ (5,993 ) $ (4,030 ) $ (13,704 ) $ (8,300 ) Presort Services 12,565 19,270 39,591 49,987 Commerce Services 6,572 15,240 25,887 41,687 North America Mailing 115,193 120,797 234,763 262,041 International Mailing 13,215 14,020 29,246 27,430 Small & Medium Business Solutions 128,408 134,817 264,009 289,471 Software Solutions 18,433 5,091 20,925 6,397 Total segment EBIT 153,413 155,148 310,821 337,555 Reconciling items: Unallocated corporate expenses (46,477 ) (52,549 ) (97,561 ) (110,151 ) Interest, net (41,969 ) (40,443 ) (85,047 ) (79,093 ) Restructuring charges and asset impairments, net (11,503 ) (25,990 ) (12,407 ) (27,639 ) Gain from the sale of technology — 6,085 — 6,085 Transaction costs — — (1,053 ) — Income from continuing operations before income taxes 53,464 42,251 114,753 126,757 Provision for income taxes 6,458 790 22,721 27,872 Income from discontinued operations, net of tax 1,208 7,440 9,695 15,149 Net income $ 48,214 $ 48,901 $ 101,727 $ 114,034 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial information and Assets and Liabilities | inancial information of the Production Mail Business included in discontinued operations is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 89,201 $ 90,958 $ 191,435 $ 184,418 Earnings from discontinued operations $ 8,278 $ 11,602 $ 21,620 $ 23,645 Transaction costs (7,238 ) — (8,777 ) — Income from discontinued operations before taxes 1,040 11,602 12,843 23,645 Tax (benefit) provision (168 ) 4,162 3,148 8,496 Income from discontinued operations, net of tax $ 1,208 $ 7,440 $ 9,695 $ 15,149 The assets and liabilities of the Production Mail Business have been classified as assets of discontinued operations and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets. The major categories of assets and liabilities of the Production Mail Business included in assets of discontinued operations and liabilities of discontinued operations are as follows: June 30, 2018 December 31, 2017 Accounts receivable, net $ 69,924 $ 97,402 Inventories 54,808 48,910 Other current assets and prepayments 6,653 3,365 Property, plant and equipment, net 3,185 5,541 Rental property and equipment, net 1,041 1,786 Goodwill 176,501 177,799 Other assets 1,244 45 Total assets of discontinued operations $ 313,356 $ 334,848 Accounts payable and accrued liabilities $ 34,244 $ 36,592 Advance billings 44,694 30,607 Other noncurrent liabilities 5,281 5,609 Total liabilities of discontinued operations $ 84,219 $ 72,808 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income from continuing operations $ 47,006 $ 41,461 $ 92,032 $ 98,885 Income from discontinued operations, net of tax 1,208 7,440 9,695 15,149 Net income (numerator for diluted EPS) 48,214 48,901 101,727 114,034 Less: Preference stock dividend 8 10 16 19 Income attributable to common stockholders (numerator for basic EPS) $ 48,206 $ 48,891 $ 101,711 $ 114,015 Denominator: Weighted-average shares used in basic EPS 187,180 186,333 187,004 186,136 Effect of dilutive shares 934 1,044 1,053 809 Weighted-average shares used in diluted EPS 188,114 187,377 188,057 186,945 Basic earnings per share: Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53 Discontinued operations 0.01 0.04 0.05 0.08 Net Income $ 0.26 $ 0.26 $ 0.54 $ 0.61 Diluted earnings per share: Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53 Discontinued operations 0.01 0.04 0.05 0.08 Net Income $ 0.26 $ 0.26 $ 0.54 $ 0.61 Anti-dilutive shares not used in calculating diluted weighted-average shares 12,453 9,916 11,959 11,379 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Components | Inventories at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, Raw materials $ 13,502 $ 11,767 Supplies and service parts 21,822 21,475 Finished products 19,461 13,261 Inventory at FIFO cost 54,785 46,503 Excess of FIFO cost over LIFO cost (5,734 ) (5,734 ) Total inventory, net $ 49,051 $ 40,769 |
Finance Assets (Tables)
Finance Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Financing Receivables | Finance receivables at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 December 31, 2017 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,004,241 $ 273,118 $ 1,277,359 $ 1,023,549 $ 292,059 $ 1,315,608 Unguaranteed residual values 62,358 13,391 75,749 74,093 14,202 88,295 Unearned income (209,870 ) (58,527 ) (268,397 ) (216,720 ) (62,325 ) (279,045 ) Allowance for credit losses (11,129 ) (2,406 ) (13,535 ) (7,721 ) (2,794 ) (10,515 ) Net investment in sales-type lease receivables 845,600 225,576 1,071,176 873,201 241,142 1,114,343 Loan receivables Loan receivables 313,049 32,941 345,990 339,373 34,492 373,865 Allowance for credit losses (6,869 ) (940 ) (7,809 ) (7,098 ) (1,020 ) (8,118 ) Net investment in loan receivables 306,180 32,001 338,181 332,275 33,472 365,747 Net investment in finance receivables $ 1,151,780 $ 257,577 $ 1,409,357 $ 1,205,476 $ 274,614 $ 1,480,090 |
Allowance for Credit Losses on Financing Receivables | Activity in the allowance for credit losses for the six months ended June 30, 2018 and 2017 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2018 $ 7,721 $ 2,794 $ 7,098 $ 1,020 $ 18,633 Amounts charged to expense 5,946 545 7,008 250 13,749 Write-offs and other (2,538 ) (933 ) (7,237 ) (330 ) (11,038 ) Balance at June 30, 2018 $ 11,129 $ 2,406 $ 6,869 $ 940 $ 21,344 Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2017 $ 8,247 $ 2,647 $ 8,517 $ 1,089 $ 20,500 Amounts charged to expense 5,182 466 2,891 450 8,989 Write-offs and other (4,973 ) (617 ) (3,905 ) (382 ) (9,877 ) Balance at June 30, 2017 $ 8,456 $ 2,496 $ 7,503 $ 1,157 $ 19,612 |
Past Due Financing Receivables | The aging of gross finance receivables at June 30, 2018 and December 31, 2017 was as follows: June 30, 2018 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 961,356 $ 266,146 $ 305,116 $ 32,706 $ 1,565,324 > 90 days 42,885 6,972 7,933 235 58,025 Total $ 1,004,241 $ 273,118 $ 313,049 $ 32,941 $ 1,623,349 Past due amounts > 90 days Still accruing interest $ 6,297 $ 1,672 $ — $ — $ 7,969 Not accruing interest 36,588 5,300 7,933 235 50,056 Total $ 42,885 $ 6,972 $ 7,933 $ 235 $ 58,025 December 31, 2017 Sales-type Lease Receivables Loan Receivables North America International North America International Total 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 |
Financing Receivable Credit Quality Indicators | June 30, December 31, Sales-type lease receivables Low $ 817,554 $ 819,776 Medium 130,175 148,000 High 20,663 21,728 Not Scored 35,849 34,045 Total $ 1,004,241 $ 1,023,549 Loan receivables Low $ 244,570 $ 262,646 Medium 50,711 56,744 High 5,593 6,791 Not Scored 12,175 13,192 Total $ 313,049 $ 339,373 |
Acquisitions, Intangible Asse31
Acquisitions, Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 482,092 $ (265,904 ) $ 216,188 $ 504,716 $ (271,066 ) $ 233,650 Software & technology 166,100 (141,338 ) 24,762 167,122 (138,724 ) 28,398 Trademarks & other 40,403 (32,228 ) 8,175 40,649 (30,511 ) 10,138 Total intangible assets $ 688,595 $ (439,470 ) $ 249,125 $ 712,487 $ (440,301 ) $ 272,186 |
Amortization Expense In Future Periods | Future amortization expense as of June 30, 2018 was as follows: Remaining for year ending December 31, 2018 $ 25,997 Year ending December 31, 2019 38,023 Year ending December 31, 2020 33,722 Year ending December 31, 2021 30,001 Year ending December 31, 2022 29,012 Thereafter 92,370 Total $ 249,125 |
Schedule of Goodwill | Changes in the carrying value of goodwill, by reporting segment, for the six months ended June 30, 2018 are shown in the table below. December 31, 2017 Acquisitions Other (1) June 30, Global Ecommerce $ 602,461 $ — $ (653 ) $ 601,808 Presort Services 204,781 2,684 — 207,465 Commerce Services 807,242 2,684 (653 ) 809,273 North America Mailing 368,905 — (354 ) 368,551 International Mailing 158,203 — (5,784 ) 152,419 Small & Medium Business Solutions 527,108 — (6,138 ) 520,970 Software Solutions 440,295 — (2,690 ) 437,605 Total goodwill $ 1,774,645 $ 2,684 $ (9,481 ) $ 1,767,848 (1) Primarily represents foreign currency translation adjustments. |
Fair Value Measurements and D32
Fair Value Measurements and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2018 and December 31, 2017 . June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 114,665 $ 328,296 $ — $ 442,961 Equity securities — 24,637 — 24,637 Commingled fixed income securities 1,549 20,795 — 22,344 Government and related securities 123,239 16,429 — 139,668 Corporate debt securities — 71,078 — 71,078 Mortgage-backed / asset-backed securities — 165,835 — 165,835 Derivatives Interest rate swap — 824 — 824 Foreign exchange contracts — 2,673 — 2,673 Total assets $ 239,453 $ 630,567 $ — $ 870,020 Liabilities: Derivatives Foreign exchange contracts $ — $ (178 ) $ — $ (178 ) Total liabilities $ — $ (178 ) $ — $ (178 ) 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 ) |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale securities at June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 140,583 $ 1,247 $ (2,162 ) $ 139,668 Corporate debt securities 72,428 268 (1,618 ) 71,078 Commingled fixed income securities 1,619 — (70 ) 1,549 Mortgage-backed / asset-backed securities 168,585 730 (3,480 ) 165,835 Total $ 383,215 $ 2,245 $ (7,330 ) $ 378,130 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 |
Available-for-sale Securities | Scheduled maturities of available-for-sale securities at June 30, 2018 were as follows: Amortized cost Estimated fair value Within 1 year $ 56,012 $ 55,705 After 1 year through 5 years 114,973 113,720 After 5 years through 10 years 58,066 56,867 After 10 years 154,164 151,838 Total $ 383,215 $ 378,130 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments at June 30, 2018 and December 31, 2017 was as follows: Designation of Derivatives Balance Sheet Location June 30, December 31, Derivatives designated as hedging instruments Foreign exchange contracts Other current assets and prepayments $ 114 $ 57 Accounts payable and accrued liabilities (39 ) (144 ) Interest rate swap Other assets 824 1,776 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 2,559 65 Accounts payable and accrued liabilities (139 ) (191 ) Total derivative assets $ 3,497 $ 1,898 Total derivative liabilities (178 ) (335 ) Total net derivative asset $ 3,319 $ 1,563 |
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 three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 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 2018 2017 2018 2017 Foreign exchange contracts $ 119 $ (599 ) Revenue $ 79 $ 34 Cost of sales (1 ) 36 Interest rate swap (771 ) (147 ) Interest Expense — — $ (652 ) $ (746 ) $ 78 $ 70 Six Months Ended June 30, Derivative Gain (Loss) Recognized in AOCL (Effective Portion) Location of Gain (Loss) (Effective Portion) Gain (Loss) Reclassified from AOCL to Earnings (Effective Portion) Derivative Instrument 2018 2017 2018 2017 Foreign exchange contracts $ 154 $ (549 ) Revenue $ 76 $ 6 Cost of sales (85 ) 148 Interest rate swap (952 ) 321 Interest Expense — — $ (798 ) $ (228 ) $ (9 ) $ 154 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below represents the mark-to-market adjustments of non-designated derivative instruments for the three and six months ended June 30, 2018 and 2017 . All outstanding contracts at June 30, 2018 mature within 12 months. Three Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2018 2017 Foreign exchange contracts Selling, general and administrative expense $ (14,828 ) $ 789 Six Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2018 2017 Foreign exchange contracts Selling, general and administrative expense $ (18,396 ) $ (1,061 ) |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of our debt at June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 Carrying value $ 3,572,809 $ 3,830,335 Fair value $ 3,381,964 $ 3,718,986 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Activity in our restructuring reserves for the six months ended June 30, 2018 and 2017 was as follows: Severance and benefits costs Other exit costs Total Balance at January 1, 2018 $ 42,151 $ 1,569 $ 43,720 Expenses, net 7,990 4,417 12,407 Cash payments (26,942 ) (586 ) (27,528 ) Balance at June 30, 2018 $ 23,199 $ 5,400 $ 28,599 Balance at January 1, 2017 $ 28,234 $ 281 $ 28,515 Expenses, net 22,489 1,560 24,049 Cash payments (17,154 ) (497 ) (17,651 ) Balance at June 30, 2017 $ 33,569 $ 1,344 $ 34,913 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt at June 30, 2018 and December 31, 2017 consisted of the following: Interest rate June 30, 2018 December 31, 2017 Notes due March 2018 5.60% $ — $ 250,000 Notes due March 2019 6.25% 300,000 300,000 Notes due September 2020 3.625% 300,000 300,000 Notes due October 2021 3.625% 600,000 600,000 Notes due May 2022 4.375% 400,000 400,000 Notes due April 2023 4.7% 400,000 400,000 Notes due March 2024 4.625% 500,000 500,000 Notes due January 2037 5.25% 35,841 35,841 Notes due March 2043 6.7% 425,000 425,000 Term loans Variable 640,000 650,000 Other debt 5,378 5,476 Principal amount 3,606,219 3,866,317 Less: unamortized costs, net 33,410 35,982 Total debt 3,572,809 3,830,335 Less: current portion long-term debt 334,999 271,057 Long-term debt $ 3,237,810 $ 3,559,278 |
Pensions and Other Benefit Pr35
Pensions and Other Benefit Programs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The components of net periodic benefit cost (income) were as follows: Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Service cost $ 9 $ 34 $ 575 $ 559 $ 405 $ 434 Interest cost 15,108 17,121 4,591 4,640 1,607 1,770 Expected return on plan assets (25,119 ) (24,369 ) (9,118 ) (7,961 ) — — Amortization of transition credit — — (2 ) (2 ) — — Amortization of prior service (credit) cost (15 ) (15 ) (18 ) (17 ) 88 74 Amortization of net actuarial loss 7,628 7,229 1,870 1,892 881 905 Net periodic benefit (income) cost $ (2,389 ) $ — $ (2,102 ) $ (889 ) $ 2,981 $ 3,183 Contributions to benefit plans $ 1,906 $ 1,046 $ 769 $ 1,319 $ 4,316 $ 4,426 Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans United States Foreign Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Service cost $ 46 $ 64 $ 1,164 $ 1,101 $ 811 $ 853 Interest cost 30,724 34,366 9,287 9,184 3,210 3,541 Expected return on plan assets (50,543 ) (48,917 ) (18,304 ) (15,742 ) — — Amortization of transition credit — — (3 ) (4 ) — — Amortization of prior service (credit) cost (30 ) (30 ) (37 ) (35 ) 176 148 Amortization of net actuarial loss 15,704 14,497 3,783 3,926 1,815 1,789 Net periodic benefit (income) cost $ (4,099 ) $ (20 ) $ (4,110 ) $ (1,570 ) $ 6,012 $ 6,331 Contributions to benefit plans $ 3,194 $ 2,594 $ 9,979 $ 10,391 $ 9,111 $ 9,124 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders’ equity for the six months ended June 30, 2018 and 2017 were as follows: Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at December 31, 2017 $ 1 $ 441 $ 323,338 $ 138,367 $ 5,229,584 $ (792,173 ) $ (4,710,997 ) $ 188,561 Cumulative effect of accounting changes — — — — (12,207 ) — — (12,207 ) Net income — — — — 101,727 — — 101,727 Other comprehensive income — — — — — (18,078 ) — (18,078 ) Dividends paid — — — — (70,113 ) — — (70,113 ) Issuance of common stock — — — (24,267 ) — — 21,141 (3,126 ) Conversion to common stock — (26 ) — (521 ) — — 547 — Stock-based compensation expense — — — 9,153 — — — 9,153 Balance at June 30, 2018 $ 1 $ 415 $ 323,338 $ 122,732 $ 5,248,991 $ (810,251 ) $ (4,689,309 ) $ 195,917 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total (deficit) equity Balance at December 31, 2016 $ 1 $ 483 $ 323,338 $ 148,125 $ 5,107,734 $ (940,133 ) $ (4,743,208 ) $ (103,660 ) Net income — — — — 114,034 — — 114,034 Other comprehensive loss — — — — — 80,818 — 80,818 Dividends paid — — — — (69,527 ) — — (69,527 ) Issuance of common stock — — — (28,567 ) — — 23,744 (4,823 ) Conversion to common stock — (20 ) — (398 ) — — 418 — Stock-based compensation expense — — — 12,531 — — — 12,531 Balance at June 30, 2017 $ 1 $ 463 $ 323,338 $ 131,691 $ 5,152,241 $ (859,315 ) $ (4,719,046 ) $ 29,373 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three and six months ended June 30, 2018 and 2017 were as follows: Amount Reclassified from AOCI (a) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Gains (losses) on cash flow hedges Revenue $ 79 $ 34 $ 76 $ 6 Cost of sales (1 ) 36 (85 ) 148 Interest expense, net (507 ) (507 ) (1,014 ) (1,014 ) Total before tax (429 ) (437 ) (1,023 ) (860 ) Benefit from income taxes 110 170 261 336 Net of tax $ (319 ) $ (267 ) $ (762 ) $ (524 ) Gains (losses) on available for sale securities Interest expense, net $ 214 $ (117 ) $ 190 $ (226 ) (Provision) benefit from income taxes (54 ) 44 (48 ) 84 Net of tax $ 160 $ (73 ) $ 142 $ (142 ) Pension and Postretirement Benefit Plans (b) Transition credit $ 2 $ 2 $ 3 $ 4 Prior service costs (55 ) (42 ) (109 ) (83 ) Actuarial losses (10,379 ) (10,026 ) (21,302 ) (20,212 ) Total before tax (10,432 ) (10,066 ) (21,408 ) (20,291 ) Benefit from income taxes 2,564 3,442 5,368 6,956 Net of tax $ (7,868 ) $ (6,624 ) $ (16,040 ) $ (13,335 ) (a) Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss). (b) Reclassified from accumulated other comprehensive loss into other components of net pension and postretirement cost. These amounts are included in the computation of net periodic costs (see Note 12 for additional details). |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI for the six months ended June 30, 2018 and 2017 were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2018 $ (406 ) $ 1,597 $ (748,800 ) $ (44,564 ) $ (792,173 ) Other comprehensive loss before reclassifications (a) (511 ) (5,154 ) — (29,073 ) (34,738 ) Reclassifications into earnings (a), (b) 762 (142 ) 16,040 — 16,660 Net other comprehensive income (loss) 251 (5,296 ) 16,040 (29,073 ) (18,078 ) Balance at June 30, 2018 $ (155 ) $ (3,699 ) $ (732,760 ) $ (73,637 ) $ (810,251 ) Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2017 $ (1,485 ) $ 120 $ (787,813 ) $ (150,955 ) $ (940,133 ) Other comprehensive (loss) income before reclassifications (a) (141 ) 1,734 (1,482 ) 66,706 66,817 Reclassifications into earnings (a), (b) 524 142 13,335 — 14,001 Net other comprehensive income 383 1,876 11,853 66,706 80,818 Balance at June 30, 2017 $ (1,102 ) $ 1,996 $ (775,960 ) $ (84,249 ) $ (859,315 ) (a) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (b) See table above for additional details of these reclassifications. |
Description of Business and B38
Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (5,248,991) | $ (5,229,584) | |
ASU No. 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (3,000) |
Revenue from Contracts with C39
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ (5,248,991) | $ (5,248,991) | $ (5,229,584) | |||
Income before income taxes | 53,464 | $ 42,251 | $ 114,753 | $ 126,757 | ||
Advanced billings, revenue recognized | $ 128,000 | |||||
Expected timing of satisfaction period | 12 months | 12 months | ||||
Selling, general and administrative expense | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Amortization expense | $ 3,000 | $ 7,000 | ||||
Other assets | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Unamortized contract costs | 26,000 | 26,000 | ||||
Software | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cost of products and sales | 26,459 | $ 23,361 | 50,514 | $ 46,515 | ||
ASC 606 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 9,000 | |||||
ASC 606 | Total increase (decrease) | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | (7,167) | (7,167) | ||||
Income before income taxes | 11,025 | 20,532 | ||||
ASC 606 | Software | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cost of products and sales | 10,000 | 21,000 | ||||
ASC 606 | Software | Total increase (decrease) | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cost of products and sales | 690 | 1,972 | ||||
Income before income taxes | $ 9,000 | $ 19,000 |
Revenue from Contracts with C40
Revenue from Contracts with Customers (Income Statement) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 861,436 | $ 730,413 | $ 1,742,384 | $ 1,473,593 |
Costs and expenses: | ||||
Total costs and expenses | 807,972 | 688,162 | 1,627,631 | 1,346,836 |
Selling, general and administrative | 282,456 | 283,073 | 577,894 | 573,645 |
Income before income taxes | 53,464 | 42,251 | 114,753 | 126,757 |
Provision for income taxes | 6,458 | 790 | 22,721 | 27,872 |
Net income from continuing operations | $ 47,006 | $ 41,461 | $ 92,032 | $ 98,885 |
Basic earnings per share attributable to common stockholders: | ||||
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.49 | $ 0.53 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.49 | $ 0.53 |
ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 640,003 | $ 1,293,790 | ||
Prior guidance | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 852,781 | 1,724,060 | ||
Costs and expenses: | ||||
Total costs and expenses | 810,342 | 1,629,841 | ||
Selling, general and administrative | 285,587 | 582,017 | ||
Income before income taxes | 42,439 | 94,221 | ||
Provision for income taxes | 3,640 | 17,434 | ||
Net income from continuing operations | $ 38,799 | $ 76,787 | ||
Basic earnings per share attributable to common stockholders: | ||||
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.21 | $ 0.41 | ||
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.22 | $ 0.41 | ||
Total increase (decrease) | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 8,655 | $ 18,324 | ||
Costs and expenses: | ||||
Total costs and expenses | (2,370) | (2,210) | ||
Selling, general and administrative | (3,131) | (4,123) | ||
Income before income taxes | 11,025 | 20,532 | ||
Provision for income taxes | 2,818 | 5,287 | ||
Net income from continuing operations | $ 8,207 | $ 15,245 | ||
Basic earnings per share attributable to common stockholders: | ||||
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.04 | $ 0.08 | ||
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.03 | $ 0.08 | ||
Equipment sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 105,750 | $ 121,384 | $ 216,121 | $ 245,887 |
Costs and expenses: | ||||
Cost of products and sales | 47,106 | 51,506 | 93,160 | 96,122 |
Equipment sales | Prior guidance | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 106,301 | 217,533 | ||
Costs and expenses: | ||||
Cost of products and sales | 47,035 | 93,219 | ||
Equipment sales | Total increase (decrease) | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | (551) | (1,412) | ||
Costs and expenses: | ||||
Cost of products and sales | 71 | (59) | ||
Software | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 91,702 | 81,319 | 167,996 | 154,165 |
Costs and expenses: | ||||
Cost of products and sales | 26,459 | 23,361 | 50,514 | 46,515 |
Software | ASC 606 | ||||
Costs and expenses: | ||||
Cost of products and sales | 10,000 | 21,000 | ||
Software | Prior guidance | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 82,054 | 147,329 | ||
Costs and expenses: | ||||
Cost of products and sales | 25,769 | 48,542 | ||
Software | Total increase (decrease) | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 9,648 | 20,667 | ||
Costs and expenses: | ||||
Cost of products and sales | 690 | 1,972 | ||
Income before income taxes | 9,000 | 19,000 | ||
Business services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 367,876 | 217,903 | 754,414 | 442,422 |
Costs and expenses: | ||||
Cost of products and sales | 293,480 | $ 153,063 | 590,879 | $ 303,906 |
Business services | Prior guidance | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 368,318 | 755,345 | ||
Business services | Total increase (decrease) | ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ (442) | $ (931) |
Revenue from Contracts with C41
Revenue from Contracts with Customers (Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Total assets | $ 6,246,751 | $ 6,678,715 | |||
Accounts receivable (net of allowance of $13,515 and $14,786, respectively) | 408,703 | 427,022 | |||
Current income taxes | 39,100 | 58,439 | |||
Other current assets and prepayments | 102,104 | 74,589 | |||
Assets of discontinued operations | 313,356 | 334,848 | |||
Noncurrent income taxes | 54,099 | 59,909 | |||
Other assets | 528,945 | 540,750 | |||
Total Liabilities | |||||
Total liabilities | 6,050,834 | 6,490,154 | |||
Accounts payable and accrued liabilities | 1,349,344 | 1,450,149 | |||
Current income taxes | 5,686 | 8,823 | |||
Advance billings | 237,709 | 257,766 | |||
Liabilities of discontinued operations | 84,219 | 72,808 | |||
Deferred taxes on income | 234,190 | 234,643 | |||
Other noncurrent liabilities | 461,074 | 519,079 | |||
Stockholders’ equity: | |||||
Total stockholders’ equity | 195,917 | 188,561 | $ 29,373 | $ (103,660) | |
Retained earnings | 5,248,991 | 5,229,584 | |||
Accumulated other comprehensive loss | (810,251) | $ (792,173) | |||
ASC 606 | |||||
Stockholders’ equity: | |||||
Retained earnings | $ (9,000) | ||||
Prior guidance | ASC 606 | |||||
ASSETS | |||||
Total assets | 6,250,943 | ||||
Accounts receivable (net of allowance of $13,515 and $14,786, respectively) | 407,204 | ||||
Current income taxes | 39,298 | ||||
Other current assets and prepayments | 102,760 | ||||
Assets of discontinued operations | 312,922 | ||||
Noncurrent income taxes | 54,429 | ||||
Other assets | 533,886 | ||||
Total Liabilities | |||||
Total liabilities | 6,062,221 | ||||
Accounts payable and accrued liabilities | 1,347,837 | ||||
Current income taxes | 43 | ||||
Advance billings | 250,948 | ||||
Liabilities of discontinued operations | 84,132 | ||||
Deferred taxes on income | 238,539 | ||||
Other noncurrent liabilities | 462,110 | ||||
Stockholders’ equity: | |||||
Total stockholders’ equity | 188,722 | ||||
Retained earnings | 5,241,824 | ||||
Accumulated other comprehensive loss | (810,279) | ||||
Total increase (decrease) | ASC 606 | |||||
ASSETS | |||||
Total assets | (4,192) | ||||
Accounts receivable (net of allowance of $13,515 and $14,786, respectively) | 1,499 | ||||
Current income taxes | (198) | ||||
Other current assets and prepayments | (656) | ||||
Assets of discontinued operations | 434 | ||||
Noncurrent income taxes | (330) | ||||
Other assets | (4,941) | ||||
Total Liabilities | |||||
Total liabilities | (11,387) | ||||
Accounts payable and accrued liabilities | 1,507 | ||||
Current income taxes | 5,643 | ||||
Advance billings | (13,239) | ||||
Liabilities of discontinued operations | 87 | ||||
Deferred taxes on income | (4,349) | ||||
Other noncurrent liabilities | (1,036) | ||||
Stockholders’ equity: | |||||
Total stockholders’ equity | 7,195 | ||||
Retained earnings | 7,167 | ||||
Accumulated other comprehensive loss | $ 28 |
Revenue from Contracts with C42
Revenue from Contracts with Customers (Disaggregates of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | $ 640,003 | $ 1,293,790 | ||
Revenue from leasing transactions and financing | 221,433 | 448,594 | ||
Total Consolidated Revenue | 861,436 | $ 730,413 | 1,742,384 | $ 1,473,593 |
Total revenue | 640,003 | 1,293,790 | ||
ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 640,003 | 1,293,790 | ||
Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 121,377 | 237,937 | ||
Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 518,626 | 1,055,853 | ||
Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 640,003 | 1,293,790 | ||
Revenue from leasing transactions and financing | 0 | 0 | ||
Total Consolidated Revenue | 640,003 | 1,293,790 | ||
Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 26,957 | 57,467 | ||
Revenue from leasing transactions and financing | 78,793 | 158,654 | ||
Total Consolidated Revenue | 105,750 | 121,384 | 216,121 | 245,887 |
Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 55,457 | 115,450 | ||
Revenue from leasing transactions and financing | 0 | 0 | ||
Total Consolidated Revenue | 55,457 | 58,639 | 115,450 | 119,694 |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 91,702 | 167,996 | ||
Revenue from leasing transactions and financing | 0 | 0 | ||
Total Consolidated Revenue | 91,702 | 81,319 | 167,996 | 154,165 |
Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 7,260 | 15,137 | ||
Revenue from leasing transactions and financing | 84,549 | 171,298 | ||
Total Consolidated Revenue | 91,809 | 95,447 | 186,435 | 194,754 |
Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 18,580 | 38,132 | ||
Revenue from leasing transactions and financing | 58,091 | 118,642 | ||
Total Consolidated Revenue | 76,671 | 83,653 | 156,774 | 169,398 |
Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 72,171 | 145,194 | ||
Revenue from leasing transactions and financing | 0 | |||
Total Consolidated Revenue | 72,171 | 72,068 | 145,194 | 147,273 |
Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 367,876 | 754,414 | ||
Revenue from leasing transactions and financing | 0 | 0 | ||
Total Consolidated Revenue | 367,876 | 217,903 | 754,414 | 442,422 |
Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Revenue from leasing transactions and financing | 221,433 | 448,594 | ||
Total Consolidated Revenue | 221,433 | 448,594 | ||
Software Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 91,702 | 167,996 | ||
Total Consolidated Revenue | 91,702 | $ 81,081 | 167,996 | $ 154,280 |
Total revenue | 91,702 | 167,996 | ||
Software Solutions | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 91,702 | 167,996 | ||
Software Solutions | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 38,963 | 65,020 | ||
Software Solutions | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 52,739 | 102,976 | ||
Software Solutions | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 91,702 | 167,996 | ||
Software Solutions | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 91,702 | 167,996 | ||
Software Solutions | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Software Solutions | Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 239,100 | 485,690 | ||
Total revenue | 239,100 | 485,690 | ||
Global Ecommerce | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 239,100 | 485,690 | ||
Global Ecommerce | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 0 | 0 | ||
Global Ecommerce | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 239,100 | 485,690 | ||
Global Ecommerce | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 239,100 | 485,690 | ||
Global Ecommerce | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Global Ecommerce | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 239,100 | 485,690 | ||
Global Ecommerce | Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 122,730 | 257,188 | ||
Total revenue | 122,730 | 257,188 | ||
Presort Services | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 122,730 | 257,188 | ||
Presort Services | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 0 | 0 | ||
Presort Services | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 122,730 | 257,188 | ||
Presort Services | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 122,730 | 257,188 | ||
Presort Services | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
Presort Services | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 122,730 | 257,188 | ||
Presort Services | Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
North America Mailing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 127,764 | 260,696 | ||
Total revenue | 314,546 | 640,115 | ||
North America Mailing | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 127,764 | 260,696 | ||
North America Mailing | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 51,574 | 107,672 | ||
North America Mailing | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 76,190 | 153,024 | ||
North America Mailing | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 127,764 | 260,696 | ||
North America Mailing | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 15,303 | 32,449 | ||
North America Mailing | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 36,271 | 75,223 | ||
North America Mailing | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
North America Mailing | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 5,121 | 10,832 | ||
North America Mailing | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 15,714 | 32,290 | ||
North America Mailing | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 50,902 | 101,647 | ||
North America Mailing | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 4,453 | 8,255 | ||
North America Mailing | Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 186,782 | 379,419 | ||
International Mailing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 58,707 | 122,220 | ||
Total revenue | 93,358 | 191,395 | ||
International Mailing | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 58,707 | 122,220 | ||
International Mailing | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 30,840 | 65,245 | ||
International Mailing | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Consolidated Revenue | 27,867 | 56,975 | ||
International Mailing | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 58,707 | 122,220 | ||
International Mailing | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 11,654 | 25,018 | ||
International Mailing | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 19,186 | 40,227 | ||
International Mailing | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 0 | 0 | ||
International Mailing | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 2,139 | 4,305 | ||
International Mailing | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 2,866 | 5,842 | ||
International Mailing | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 21,269 | 43,547 | ||
International Mailing | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 1,593 | 3,281 | ||
International Mailing | Leasing transactions and financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | $ 34,651 | $ 69,175 |
Revenue from Contracts with C43
Revenue from Contracts with Customers (Contract Assets and Advance Billings) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts assets, current | $ 8,213 | $ 5,075 |
Contracts assets, noncurrent | 4,006 | 648 |
Advance billings | 186,778 | 209,098 |
Advance billings, noncurrent | 14,658 | $ 17,765 |
Total increase (decrease) | ||
Contracts assets, current | 3,138 | |
Contracts assets, noncurrent | 3,358 | |
Advance billings, current | (22,320) | |
Advance billings, noncurrent | $ (3,107) |
Revenue from Contracts with C44
Revenue from Contracts with Customers (Future Performance Obligations) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 128,899 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | 162,064 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | 162,937 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | 453,900 |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 41,674 |
Expected timing of satisfaction period | 6 months |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 36,120 |
Expected timing of satisfaction period | 1 year |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 24,589 |
Expected timing of satisfaction period | |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 102,383 |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 57,793 |
Expected timing of satisfaction period | 6 months |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 89,529 |
Expected timing of satisfaction period | 1 year |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 86,633 |
Expected timing of satisfaction period | |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 233,955 |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 29,432 |
Expected timing of satisfaction period | 6 months |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 36,415 |
Expected timing of satisfaction period | 1 year |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 51,715 |
Expected timing of satisfaction period | |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 117,562 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment reporting information profit (loss) | ||||
Total revenue | $ 861,436 | $ 730,413 | $ 1,742,384 | $ 1,473,593 |
Reconciling items: | ||||
Interest, net | (29,623) | (27,600) | (60,476) | (53,276) |
Restructuring charges and asset impairments, net | (11,503) | (25,990) | (12,407) | (27,639) |
Gain from the sale of technology | 0 | 6,085 | ||
Income from continuing operations before taxes | 53,464 | 42,251 | 114,753 | 126,757 |
Provision for income taxes | 6,458 | 790 | 22,721 | 27,872 |
Income from discontinued operations, net of tax | 1,208 | 7,440 | 9,695 | 15,149 |
Net income | 48,214 | 48,901 | 101,727 | 114,034 |
Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | 153,413 | 155,148 | 310,821 | 337,555 |
Segment Reconciling Items | ||||
Reconciling items: | ||||
Unallocated corporate expenses | (46,477) | (52,549) | (97,561) | (110,151) |
Interest, net | (41,969) | (40,443) | (85,047) | (79,093) |
Restructuring charges and asset impairments, net | (11,503) | (25,990) | (12,407) | (27,639) |
Gain from the sale of technology | 0 | 6,085 | 0 | 6,085 |
Transaction costs | 0 | 0 | (1,053) | 0 |
Commerce Services | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 361,830 | 212,958 | 742,878 | 433,787 |
Commerce Services | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | 6,572 | 15,240 | 25,887 | 41,687 |
Commerce Services | Global Ecommerce | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 239,100 | 94,506 | 485,690 | 182,658 |
EBIT | (5,993) | (4,030) | (13,704) | (8,300) |
Commerce Services | Presort Services | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 122,730 | 118,452 | 257,188 | 251,129 |
EBIT | 12,565 | 19,270 | 39,591 | 49,987 |
Small & Medium Business Solutions | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 407,904 | 436,374 | 831,510 | 885,526 |
Small & Medium Business Solutions | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | 128,408 | 134,817 | 264,009 | 289,471 |
Small & Medium Business Solutions | North America Mailing | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 314,546 | 340,949 | 640,115 | 696,902 |
EBIT | 115,193 | 120,797 | 234,763 | 262,041 |
Small & Medium Business Solutions | International Mailing | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 93,358 | 95,425 | 191,395 | 188,624 |
EBIT | 13,215 | 14,020 | 29,246 | 27,430 |
Software Solutions | ||||
Segment reporting information profit (loss) | ||||
Total revenue | 91,702 | 81,081 | 167,996 | 154,280 |
Software Solutions | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | $ 18,433 | $ 5,091 | $ 20,925 | $ 6,397 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - DMT - Disposed of by Sale - USD ($) $ in Millions | Aug. 01, 2018 | Dec. 31, 2018 | Jul. 02, 2018 |
Forecast | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale, net | $ 270 | ||
Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale price of DMT | $ 316 | ||
Proceeds from sale | $ 24 |
Discontinued Operations (Financ
Discontinued Operations (Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 1,208 | $ 7,440 | $ 9,695 | $ 15,149 |
DMT | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 89,201 | 90,958 | 191,435 | 184,418 |
Earnings from discontinued operations | 8,278 | 11,602 | 21,620 | 23,645 |
Transaction costs | (7,238) | 0 | (8,777) | 0 |
Income from discontinued operations before taxes | 1,040 | 11,602 | 12,843 | 23,645 |
Tax (benefit) provision | (168) | 4,162 | 3,148 | 8,496 |
Income from discontinued operations, net of tax | $ 1,208 | $ 7,440 | $ 9,695 | $ 15,149 |
Discontinued Operations (Assets
Discontinued Operations (Assets and Liabilities) (Details) - DMT - Disposed of by Sale - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 69,924 | $ 97,402 |
Inventories | 54,808 | 48,910 |
Other current assets and prepayments | 6,653 | 3,365 |
Property, plant and equipment, net | 3,185 | 5,541 |
Rental property and equipment, net | 1,041 | 1,786 |
Goodwill | 176,501 | 177,799 |
Other assets | 1,244 | 45 |
Total assets of discontinued operations | 313,356 | 334,848 |
Accounts payable and accrued liabilities | 34,244 | 36,592 |
Advance billings | 44,694 | 30,607 |
Other noncurrent liabilities | 5,281 | 5,609 |
Total liabilities of discontinued operations | $ 84,219 | $ 72,808 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income from continuing operations | $ 47,006 | $ 41,461 | $ 92,032 | $ 98,885 |
Income from discontinued operations, net of tax | 1,208 | 7,440 | 9,695 | 15,149 |
Net income (numerator for diluted EPS) | 48,214 | 48,901 | 101,727 | 114,034 |
Less: Preference stock dividend | 8 | 10 | 16 | 19 |
Income attributable to common stockholders (numerator for basic EPS) | $ 48,206 | $ 48,891 | $ 101,711 | $ 114,015 |
Denominator: | ||||
Weighted-average shares used in basic EPS (in shares) | 187,180 | 186,333 | 187,004 | 186,136 |
Effect of dilutive shares (in shares) | 934 | 1,044 | 1,053 | 809 |
Weighted-average shares used in diluted EPS (in shares) | 188,114 | 187,377 | 188,057 | 186,945 |
Basic earnings per share: | ||||
Continuing operations (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.49 | $ 0.53 |
Discontinued operations (in dollars per share) | 0.01 | 0.04 | 0.05 | 0.08 |
Net Income (in dollars per share) | 0.26 | 0.26 | 0.54 | 0.61 |
Diluted earnings per share: | ||||
Continuing operations (in dollars per share) | 0.25 | 0.22 | 0.49 | 0.53 |
Discontinued operations (in dollars per share) | 0.01 | 0.04 | 0.05 | 0.08 |
Net Income (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.54 | $ 0.61 |
Anti-dilutive shares not used in calculating diluted weighted-average shares (in shares) | 12,453 | 9,916 | 11,959 | 11,379 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,502 | $ 11,767 |
Supplies and service parts | 21,822 | 21,475 |
Finished products | 19,461 | 13,261 |
Inventory at FIFO cost | 54,785 | 46,503 |
Excess of FIFO cost over LIFO cost | (5,734) | (5,734) |
Total inventory, net | $ 49,051 | $ 40,769 |
Finance Assets (Finance Receiva
Finance Assets (Finance Receivables) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in finance receivables | $ 1,409,357 | $ 1,480,090 |
North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in finance receivables | 1,151,780 | 1,205,476 |
International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in finance receivables | 257,577 | 274,614 |
Sales-type lease receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 1,277,359 | 1,315,608 |
Unguaranteed residual values | 75,749 | 88,295 |
Unearned income | (268,397) | (279,045) |
Allowance for credit losses | (13,535) | (10,515) |
Net investment in receivables | 1,071,176 | 1,114,343 |
Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 1,004,241 | 1,023,549 |
Unguaranteed residual values | 62,358 | 74,093 |
Unearned income | (209,870) | (216,720) |
Allowance for credit losses | (11,129) | (7,721) |
Net investment in receivables | 845,600 | 873,201 |
Sales-type lease receivables | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 273,118 | 292,059 |
Unguaranteed residual values | 13,391 | 14,202 |
Unearned income | (58,527) | (62,325) |
Allowance for credit losses | (2,406) | (2,794) |
Net investment in receivables | 225,576 | 241,142 |
Loan receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 345,990 | 373,865 |
Allowance for credit losses | (7,809) | (8,118) |
Net investment in receivables | 338,181 | 365,747 |
Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 313,049 | 339,373 |
Allowance for credit losses | (6,869) | (7,098) |
Net investment in receivables | 306,180 | 332,275 |
Loan receivables | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 32,941 | 34,492 |
Allowance for credit losses | (940) | (1,020) |
Net investment in receivables | $ 32,001 | $ 33,472 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease period | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease period | 5 years |
Finance Assets (Allowance for C
Finance Assets (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Revenue recognition resume period (less than) | 60 days | |
Allowance for Credit Losses | ||
Balance Beginning | $ 18,633 | $ 20,500 |
Amounts charged to expense | 13,749 | 8,989 |
Write-offs and other | (11,038) | (9,877) |
Balance Closing | $ 21,344 | 19,612 |
Sales-type lease receivables | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Revenue recognition discontinuation period (more than) | 120 days | |
Sales-type lease receivables | North America | ||
Allowance for Credit Losses | ||
Balance Beginning | $ 7,721 | 8,247 |
Amounts charged to expense | 5,946 | 5,182 |
Write-offs and other | (2,538) | (4,973) |
Balance Closing | 11,129 | 8,456 |
Sales-type lease receivables | International | ||
Allowance for Credit Losses | ||
Balance Beginning | 2,794 | 2,647 |
Amounts charged to expense | 545 | 466 |
Write-offs and other | (933) | (617) |
Balance Closing | $ 2,406 | 2,496 |
Loan receivables | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Revenue recognition discontinuation period (more than) | 90 days | |
Loan receivables | North America | ||
Allowance for Credit Losses | ||
Balance Beginning | $ 7,098 | 8,517 |
Amounts charged to expense | 7,008 | 2,891 |
Write-offs and other | (7,237) | (3,905) |
Balance Closing | 6,869 | 7,503 |
Loan receivables | International | ||
Allowance for Credit Losses | ||
Balance Beginning | 1,020 | 1,089 |
Amounts charged to expense | 250 | 450 |
Write-offs and other | (330) | (382) |
Balance Closing | $ 940 | $ 1,157 |
Finance Assets (Aging of Receiv
Finance Assets (Aging of Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 1,623,349 | $ 1,689,473 |
1 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 1,565,324 | 1,621,914 |
Contract value | 1,565,324 | 1,621,914 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 58,025 | 67,559 |
Still accruing interest | 7,969 | 12,545 |
Not accruing interest | 50,056 | 55,014 |
Contract value | 58,025 | 67,559 |
Sales-type lease receivables | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,004,241 | 1,023,549 |
Sales-type lease receivables | North America | 1 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 961,356 | 971,002 |
Contract value | 961,356 | 971,002 |
Sales-type lease receivables | North America | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 42,885 | 52,547 |
Still accruing interest | 6,297 | 10,807 |
Not accruing interest | 36,588 | 41,740 |
Contract value | 42,885 | 52,547 |
Sales-type lease receivables | International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 273,118 | 292,059 |
Sales-type lease receivables | International | 1 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 266,146 | 286,170 |
Contract value | 266,146 | 286,170 |
Sales-type lease receivables | International | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 6,972 | 5,889 |
Still accruing interest | 1,672 | 1,738 |
Not accruing interest | 5,300 | 4,151 |
Contract value | 6,972 | 5,889 |
Loan receivables | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 313,049 | 339,373 |
Loan receivables | North America | 1 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 305,116 | 330,503 |
Contract value | 305,116 | 330,503 |
Loan receivables | North America | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 7,933 | 8,870 |
Still accruing interest | 0 | 0 |
Not accruing interest | 7,933 | 8,870 |
Contract value | 7,933 | 8,870 |
Loan receivables | International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 32,941 | 34,492 |
Loan receivables | International | 1 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 32,706 | 34,239 |
Contract value | 32,706 | 34,239 |
Loan receivables | International | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables | 235 | 253 |
Still accruing interest | 0 | 0 |
Not accruing interest | 235 | 253 |
Contract value | $ 235 | $ 253 |
Finance Assets (Credit Quality)
Finance Assets (Credit Quality) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Low | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Medium | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Approximate percentage of portfolio | 40.00% | |
High | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Sales-type lease receivables | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | $ 1,277,359 | $ 1,315,608 |
Sales-type lease receivables | North America | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 1,004,241 | 1,023,549 |
Sales-type lease receivables | North America | Low | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 817,554 | 819,776 |
Sales-type lease receivables | North America | Medium | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 130,175 | 148,000 |
Sales-type lease receivables | North America | High | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 20,663 | 21,728 |
Sales-type lease receivables | North America | Not Scored | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 35,849 | 34,045 |
Loan receivables | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 345,990 | 373,865 |
Loan receivables | North America | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 313,049 | 339,373 |
Loan receivables | North America | Low | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 244,570 | 262,646 |
Loan receivables | North America | Medium | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 50,711 | 56,744 |
Loan receivables | North America | High | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | 5,593 | 6,791 |
Loan receivables | North America | Not Scored | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross finance receivables | $ 12,175 | $ 13,192 |
Acquisitions, Intangible Asse55
Acquisitions, Intangible Assets and Goodwill (Acquisition) (Details) - Newgistics - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | |||||
Acquisition of business | $ 471 | ||||
Revenues from Newgistics | $ 127 | $ 257 | |||
Pro forma revenue | $ 115 | $ 234 |
Acquisitions, Intangible Asse56
Acquisitions, Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite lived intangible assets | |||||
Gross Carrying Amount | $ 688,595 | $ 688,595 | $ 712,487 | ||
Accumulated Amortization | (439,470) | (439,470) | (440,301) | ||
Net Carrying Amount | 249,125 | 249,125 | 272,186 | ||
Amortization expense | 11,000 | $ 8,000 | 22,000 | $ 17,000 | |
Customer relationships | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 482,092 | 482,092 | 504,716 | ||
Accumulated Amortization | (265,904) | (265,904) | (271,066) | ||
Net Carrying Amount | 216,188 | 216,188 | 233,650 | ||
Software & technology | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 166,100 | 166,100 | 167,122 | ||
Accumulated Amortization | (141,338) | (141,338) | (138,724) | ||
Net Carrying Amount | 24,762 | 24,762 | 28,398 | ||
Trademarks & other | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 40,403 | 40,403 | 40,649 | ||
Accumulated Amortization | (32,228) | (32,228) | (30,511) | ||
Net Carrying Amount | $ 8,175 | $ 8,175 | $ 10,138 |
Acquisitions, Intangible Asse57
Acquisitions, Intangible Assets and Goodwill (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite lived intangible assets future amortization expense | ||
Remaining for year ending December 31, 2018 | $ 25,997 | |
Year ending December 31, 2019 | 38,023 | |
Year ending December 31, 2020 | 33,722 | |
Year ending December 31, 2021 | 30,001 | |
Year ending December 31, 2022 | 29,012 | |
Thereafter | 92,370 | |
Net Carrying Amount | $ 249,125 | $ 272,186 |
Acquisitions, Intangible Asse58
Acquisitions, Intangible Assets and Goodwill (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill | |
Goodwill | $ 1,774,645 |
Acquisitions | 2,684 |
Other | (9,481) |
Goodwill | 1,767,848 |
Commerce Services | |
Goodwill | |
Goodwill | 807,242 |
Acquisitions | 2,684 |
Other | (653) |
Goodwill | 809,273 |
Commerce Services | Global Ecommerce | |
Goodwill | |
Goodwill | 602,461 |
Acquisitions | 0 |
Other | (653) |
Goodwill | 601,808 |
Commerce Services | Presort Services | |
Goodwill | |
Goodwill | 204,781 |
Acquisitions | 2,684 |
Other | 0 |
Goodwill | 207,465 |
Small & Medium Business Solutions | |
Goodwill | |
Goodwill | 527,108 |
Acquisitions | 0 |
Other | (6,138) |
Goodwill | 520,970 |
Small & Medium Business Solutions | North America Mailing | |
Goodwill | |
Goodwill | 368,905 |
Acquisitions | 0 |
Other | (354) |
Goodwill | 368,551 |
Small & Medium Business Solutions | International Mailing | |
Goodwill | |
Goodwill | 158,203 |
Acquisitions | 0 |
Other | (5,784) |
Goodwill | 152,419 |
Software Solutions | |
Goodwill | |
Goodwill | 440,295 |
Acquisitions | 0 |
Other | (2,690) |
Goodwill | $ 437,605 |
Fair Value Measurements and D59
Fair Value Measurements and Derivative Instruments (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 870,020 | $ 1,102,556 |
Liabilities | (178) | (335) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 239,453 | 260,959 |
Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 630,567 | 841,597 |
Liabilities | (178) | (335) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Money market funds / commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 442,961 | 685,917 |
Money market funds / commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 114,665 | 143,349 |
Money market funds / commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 328,296 | 542,568 |
Money market funds / commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 24,637 | 40,717 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 24,637 | 40,717 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 22,344 | 6,085 |
Commingled fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,549 | 1,569 |
Commingled fixed income securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 20,795 | 4,516 |
Commingled fixed income securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 139,668 | 134,628 |
Government and related securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 123,239 | 116,041 |
Government and related securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 16,429 | 18,587 |
Government and related securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 71,078 | 75,109 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 71,078 | 75,109 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 165,835 | 158,202 |
Mortgage-backed / asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage-backed / asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 165,835 | 158,202 |
Mortgage-backed / asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 824 | 1,776 |
Interest rate swap | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Interest rate swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 824 | 1,776 |
Interest rate swap | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,673 | 122 |
Liabilities | (178) | (335) |
Foreign exchange contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign exchange contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,673 | 122 |
Liabilities | (178) | (335) |
Foreign exchange contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Fair Value Measurements and D60
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 383,215 | $ 365,776 |
Gross unrealized gains | 2,245 | 5,056 |
Gross unrealized losses | (7,330) | (2,999) |
Estimated fair value | 378,130 | 367,833 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 140,583 | 131,872 |
Gross unrealized gains | 1,247 | 1,984 |
Gross unrealized losses | (2,162) | (1,090) |
Estimated fair value | 139,668 | 132,766 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 72,428 | 73,612 |
Gross unrealized gains | 268 | 1,724 |
Gross unrealized losses | (1,618) | (227) |
Estimated fair value | 71,078 | 75,109 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,619 | 1,796 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (70) | (40) |
Estimated fair value | 1,549 | 1,756 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 168,585 | 158,496 |
Gross unrealized gains | 730 | 1,348 |
Gross unrealized losses | (3,480) | (1,642) |
Estimated fair value | $ 165,835 | $ 158,202 |
Fair Value Measurements and D61
Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Investment securities at a loss position for more than 12 months, aggregate unrealized holding losses | $ 6,000,000 | $ 2,000,000 |
Investment securities at a loss position for more than 12 months, estimated fair value | 228,000,000 | 116,000,000 |
Investment securities at a loss position for less than 12 months, aggregate unrealized holding losses | 1,000,000 | 1,000,000 |
Investment securities at a loss position for less than 12 months, estimated fair value | 90,000,000 | 91,000,000 |
Amount of ineffectiveness | 0 | |
Collateral outstanding | 4,000,000 | |
Term Loan | Notes due December 2020 | ||
Derivative [Line Items] | ||
Loan amount | 300,000,000 | |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | 11,000,000 | $ 10,000,000 |
Interest rate swaps | Cash Flow Hedge | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 300,000,000 | |
Fixed interest rate | 0.8826% |
Fair Value Measurements and D62
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized cost | ||
Within 1 year | $ 56,012 | |
After 1 year through 5 years | 114,973 | |
After 5 years through 10 years | 58,066 | |
After 10 years | 154,164 | |
Total | 383,215 | $ 365,776 |
Estimated fair value | ||
Within 1 year | 55,705 | |
After 1 year through 5 years | 113,720 | |
After 5 years through 10 years | 56,867 | |
After 10 years | 151,838 | |
Total | $ 378,130 | $ 367,833 |
Fair Value Measurements and D63
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total net derivative asset | $ 3,319 | $ 1,563 |
Total derivative assets | ||
Derivative [Line Items] | ||
Total net derivative asset | 3,497 | 1,898 |
Total derivative liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (178) | (335) |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 114 | 57 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (39) | (144) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 2,559 | 65 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (139) | (191) |
Interest rate swap | Derivatives designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | $ 824 | $ 1,776 |
Fair Value Measurements and D64
Fair Value Measurements and Derivative Instruments (Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | $ (652) | $ (746) | $ (798) | $ (228) |
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 78 | 70 | (9) | 154 |
Revenue | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 79 | 34 | 76 | 6 |
Cost of sales | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (1) | 36 | (85) | 148 |
Interest Expense | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 0 | 0 | 0 | 0 |
Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | 119 | (599) | 154 | (549) |
Foreign exchange contracts | Selling, general and administrative expense | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in Earnings | (14,828) | 789 | (18,396) | (1,061) |
Interest rate swap | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | $ (771) | $ (147) | $ (952) | $ 321 |
Fair Value Measurements and D65
Fair Value Measurements and Derivative Instruments (Fair Value of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 3,572,809 | $ 3,830,335 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 3,381,964 | $ 3,718,986 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Costs | ||
Balance Beginning | $ 43,720 | $ 28,515 |
Expenses, net | 12,407 | 24,049 |
Cash payments | (27,528) | (17,651) |
Balance Ending | $ 28,599 | 34,913 |
Restructuring reserve, expected international payment period, extend beyond | 24 months | |
Minimum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 12 months | |
Maximum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 24 months | |
Severance and benefits costs | ||
Restructuring Costs | ||
Balance Beginning | $ 42,151 | 28,234 |
Expenses, net | 7,990 | 22,489 |
Cash payments | (26,942) | (17,154) |
Balance Ending | 23,199 | 33,569 |
Other exit costs | ||
Restructuring Costs | ||
Balance Beginning | 1,569 | 281 |
Expenses, net | 4,417 | 1,560 |
Cash payments | (586) | (497) |
Balance Ending | $ 5,400 | $ 1,344 |
Restructuring Charges (Asset Im
Restructuring Charges (Asset Impairments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring and Related Activities [Abstract] | |
Asset impairment charges | $ 4 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Principal amount | $ 3,606,219 | $ 3,866,317 |
Less: unamortized costs, net | 33,410 | 35,982 |
Total debt | 3,572,809 | 3,830,335 |
Less: current portion long-term debt | 334,999 | 271,057 |
Long-term debt | $ 3,237,810 | 3,559,278 |
Notes due | Notes due March 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.60% | |
Principal amount | $ 0 | 250,000 |
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 |
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 | 4.375% | |
Principal amount | $ 400,000 | 400,000 |
Notes due | Notes due April 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.70% | |
Principal amount | $ 400,000 | 400,000 |
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 | 35,841 |
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 | 640,000 | 650,000 |
Other debt | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 5,378 | $ 5,476 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Principal amount | $ 3,606,219 | $ 3,606,219 | $ 3,866,317 |
Notes due | Notes due May 2022 | |||
Debt Instrument [Line Items] | |||
Increase in interest rate | 0.25% | ||
Interest rate | 4.375% | 4.375% | |
Principal amount | $ 400,000 | $ 400,000 | 400,000 |
Notes due | Notes due September 2020 | |||
Debt Instrument [Line Items] | |||
Increase in interest rate | 0.25% | ||
Interest rate | 3.625% | 3.625% | |
Principal amount | $ 300,000 | $ 300,000 | 300,000 |
Notes due | Notes due October 2021 | |||
Debt Instrument [Line Items] | |||
Increase in interest rate | 0.25% | ||
Interest rate | 3.625% | 3.625% | |
Principal amount | $ 600,000 | $ 600,000 | 600,000 |
Notes due | Notes due April 2023 | |||
Debt Instrument [Line Items] | |||
Increase in interest rate | 0.25% | ||
Interest rate | 4.70% | 4.70% | |
Principal amount | $ 400,000 | $ 400,000 | 400,000 |
Notes due | Notes due March 2018 | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 250,000 | ||
Interest rate | 5.60% | 5.60% | |
Principal amount | $ 0 | $ 0 | 250,000 |
Notes due | Notes due March 2019 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.25% | 6.25% | |
Principal amount | $ 300,000 | $ 300,000 | 300,000 |
Term loans | |||
Debt Instrument [Line Items] | |||
Repayments of debt | 10,000 | ||
Principal amount | $ 640,000 | $ 640,000 | $ 650,000 |
Pensions and Other Benefit Pr70
Pensions and Other Benefit Programs (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Pension Plans | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 9 | $ 34 | $ 46 | $ 64 |
Interest cost | 15,108 | 17,121 | 30,724 | 34,366 |
Expected return on plan assets | (25,119) | (24,369) | (50,543) | (48,917) |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (15) | (15) | (30) | (30) |
Amortization of net actuarial loss | 7,628 | 7,229 | 15,704 | 14,497 |
Net periodic benefit cost (income) | (2,389) | 0 | (4,099) | (20) |
Contributions to benefit plans | 1,906 | 1,046 | 3,194 | 2,594 |
Defined Benefit Pension Plans | Foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 575 | 559 | 1,164 | 1,101 |
Interest cost | 4,591 | 4,640 | 9,287 | 9,184 |
Expected return on plan assets | (9,118) | (7,961) | (18,304) | (15,742) |
Amortization of transition credit | (2) | (2) | (3) | (4) |
Amortization of prior service (credit) cost | (18) | (17) | (37) | (35) |
Amortization of net actuarial loss | 1,870 | 1,892 | 3,783 | 3,926 |
Net periodic benefit cost (income) | (2,102) | (889) | (4,110) | (1,570) |
Contributions to benefit plans | 769 | 1,319 | 9,979 | 10,391 |
Nonpension Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 405 | 434 | 811 | 853 |
Interest cost | 1,607 | 1,770 | 3,210 | 3,541 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 88 | 74 | 176 | 148 |
Amortization of net actuarial loss | 881 | 905 | 1,815 | 1,789 |
Net periodic benefit cost (income) | 2,981 | 3,183 | 6,012 | 6,331 |
Contributions to benefit plans | $ 4,316 | $ 4,426 | $ 9,111 | $ 9,124 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 12.10% | 1.90% | 19.80% | 22.00% |
Charge from valuation allowance for tax carryovers | $ 2 | $ 4 | ||
Tax benefit from resolution of settlement | $ 3 | $ 10 | 6 | $ 14 |
Re-measurement of deferred tax assets | $ 9 | |||
Percent decrease in unrecognized benefits, reasonably possible (up to) | 20.00% | 20.00% |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | $ 188,561 | $ (103,660) | |||
Cumulative effect of accounting changes | $ (12,207) | ||||
Net income | $ 48,214 | $ 48,901 | 101,727 | 114,034 | |
Other comprehensive income (loss) | (38,256) | 54,510 | (18,078) | 80,818 | |
Dividends paid | (70,113) | (69,527) | |||
Issuance of common stock | (3,126) | (4,823) | |||
Conversion to common stock | 0 | 0 | |||
Stock-based compensation expense | 9,153 | 12,531 | |||
Balances, end of period | 195,917 | 29,373 | 195,917 | 29,373 | |
Preferred stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 1 | 1 | |||
Balances, end of period | 1 | 1 | 1 | 1 | |
Preference stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 441 | 483 | |||
Conversion to common stock | (26) | (20) | |||
Balances, end of period | 415 | 463 | 415 | 463 | |
Common stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 323,338 | 323,338 | |||
Balances, end of period | 323,338 | 323,338 | 323,338 | 323,338 | |
Additional paid-in capital | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 138,367 | 148,125 | |||
Issuance of common stock | (24,267) | (28,567) | |||
Conversion to common stock | (521) | (398) | |||
Stock-based compensation expense | 9,153 | 12,531 | |||
Balances, end of period | 122,732 | 131,691 | 122,732 | 131,691 | |
Retained earnings | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 5,229,584 | 5,107,734 | |||
Cumulative effect of accounting changes | $ (12,207) | ||||
Net income | 101,727 | 114,034 | |||
Dividends paid | (70,113) | (69,527) | |||
Balances, end of period | 5,248,991 | 5,152,241 | 5,248,991 | 5,152,241 | |
Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | (792,173) | (940,133) | |||
Other comprehensive income (loss) | (18,078) | 80,818 | |||
Balances, end of period | (810,251) | (859,315) | (810,251) | (859,315) | |
Treasury stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | (4,710,997) | (4,743,208) | |||
Issuance of common stock | 21,141 | 23,744 | |||
Conversion to common stock | 547 | 418 | |||
Balances, end of period | $ (4,689,309) | $ (4,719,046) | $ (4,689,309) | $ (4,719,046) |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | $ 640,003 | $ 1,293,790 | ||
Interest expense, net | (29,623) | $ (27,600) | (60,476) | $ (53,276) |
Selling, general and administrative | (282,456) | (283,073) | (577,894) | (573,645) |
Income from continuing operations before taxes | 53,464 | 42,251 | 114,753 | 126,757 |
(Provision) benefit from income taxes | (6,458) | (790) | (22,721) | (27,872) |
Net income | 48,214 | 48,901 | 101,727 | 114,034 |
Reclassification out of Accumulated Other Comprehensive Loss | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Revenue from sales and services (ASC 606) | 79 | 34 | 76 | 6 |
Cost of sales | (1) | 36 | (85) | 148 |
Interest expense, net | (507) | (507) | (1,014) | (1,014) |
Income from continuing operations before taxes | (429) | (437) | (1,023) | (860) |
(Provision) benefit from income taxes | 110 | 170 | 261 | 336 |
Net income | (319) | (267) | (762) | (524) |
Reclassification out of Accumulated Other Comprehensive Loss | Available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | 214 | (117) | 190 | (226) |
(Provision) benefit from income taxes | (54) | 44 | (48) | 84 |
Net income | 160 | (73) | 142 | (142) |
Reclassification out of Accumulated Other Comprehensive Loss | Pension and postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from continuing operations before taxes | (10,432) | (10,066) | (21,408) | (20,291) |
(Provision) benefit from income taxes | 2,564 | 3,442 | 5,368 | 6,956 |
Net income | (7,868) | (6,624) | (16,040) | (13,335) |
Reclassification out of Accumulated Other Comprehensive Loss | Transition credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative | 2 | 2 | 3 | 4 |
Reclassification out of Accumulated Other Comprehensive Loss | Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative | (55) | (42) | (109) | (83) |
Reclassification out of Accumulated Other Comprehensive Loss | Actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative | $ (10,379) | $ (10,026) | $ (21,302) | $ (20,212) |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | $ 188,561 | $ (103,660) | ||
Other comprehensive income (loss) before reclassifications | (34,738) | 66,817 | ||
Reclassifications into earnings | 16,660 | 14,001 | ||
Other comprehensive (loss) income, net of tax | $ (38,256) | $ 54,510 | (18,078) | 80,818 |
Balances, end of period | 195,917 | 29,373 | 195,917 | 29,373 |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (406) | (1,485) | ||
Other comprehensive income (loss) before reclassifications | (511) | (141) | ||
Reclassifications into earnings | 762 | 524 | ||
Other comprehensive (loss) income, net of tax | 251 | 383 | ||
Balances, end of period | (155) | (1,102) | (155) | (1,102) |
Available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | 1,597 | 120 | ||
Other comprehensive income (loss) before reclassifications | (5,154) | 1,734 | ||
Reclassifications into earnings | (142) | 142 | ||
Other comprehensive (loss) income, net of tax | (5,296) | 1,876 | ||
Balances, end of period | (3,699) | 1,996 | (3,699) | 1,996 |
Pension and postretirement benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (748,800) | (787,813) | ||
Other comprehensive income (loss) before reclassifications | 0 | (1,482) | ||
Reclassifications into earnings | 16,040 | 13,335 | ||
Other comprehensive (loss) income, net of tax | 16,040 | 11,853 | ||
Balances, end of period | (732,760) | (775,960) | (732,760) | (775,960) |
Foreign currency adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (44,564) | (150,955) | ||
Other comprehensive income (loss) before reclassifications | (29,073) | 66,706 | ||
Reclassifications into earnings | 0 | 0 | ||
Other comprehensive (loss) income, net of tax | (29,073) | 66,706 | ||
Balances, end of period | (73,637) | (84,249) | (73,637) | (84,249) |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (792,173) | (940,133) | ||
Other comprehensive (loss) income, net of tax | (18,078) | 80,818 | ||
Balances, end of period | $ (810,251) | $ (859,315) | $ (810,251) | $ (859,315) |