Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-03579 | |
Entity Registrant Name | PITNEY BOWES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0495050 | |
Entity Address, Address Line One | 3001 Summer Street, | |
Entity Address, City or Town | Stamford, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06926 | |
City Area Code | (203) | |
Local Phone Number | 356-5000 | |
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | PBI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 170,900,031 | |
Entity Central Index Key | 0000078814 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue | $ 860,779 | $ 865,240 | $ 1,729,181 | $ 1,761,823 | |
Costs and expenses: | |||||
Financing interest expense | 11,043 | 11,194 | 22,407 | 22,258 | |
Selling, general and administrative | 278,545 | 289,427 | 579,527 | 592,237 | |
Research and development | 22,630 | 23,574 | 44,404 | 48,069 | |
Restructuring charges and asset impairments, net | 7,279 | 11,503 | 10,877 | 12,407 | |
Interest expense, net | 28,019 | 30,775 | 55,621 | 62,789 | |
Other components of net pension and postretirement cost | (1,618) | (2,499) | (2,256) | (4,218) | |
Other (income) expense | (27) | 0 | 17,683 | 0 | |
Total costs and expenses | 826,402 | 806,954 | 1,687,932 | 1,633,259 | |
Income from continuing operations before taxes | 34,377 | 58,286 | 41,249 | 128,564 | |
Provision for income taxes | 4,099 | 7,899 | 12,400 | 26,694 | |
Income from continuing operations | 30,278 | 50,387 | 28,849 | 101,870 | |
(Loss) income from discontinued operations, net of tax | (6,581) | 1,208 | (7,811) | 9,695 | |
Net income | $ 23,697 | $ 51,595 | $ 21,038 | $ 111,565 | |
Basic (loss) earnings per share: | |||||
Continuing operations (in dollars per share) | [1] | $ 0.17 | $ 0.27 | $ 0.16 | $ 0.54 |
Discontinued operations (in dollars per share) | [1] | (0.04) | 0.01 | (0.04) | 0.05 |
Net income (in dollars per share) | [1] | 0.13 | 0.28 | 0.12 | 0.60 |
Diluted (loss) earnings per share: | |||||
Continuing operations (in dollars per share) | [1] | 0.17 | 0.27 | 0.16 | 0.54 |
Discontinued operations (in dollars per share) | [1] | (0.04) | 0.01 | (0.04) | 0.05 |
Net income (in dollars per share) | [1] | $ 0.13 | $ 0.27 | $ 0.12 | $ 0.59 |
Equipment sales | |||||
Revenue from contracts with customers | $ 19,384 | $ 21,844 | $ 40,677 | $ 44,055 | |
Revenue | 85,551 | 93,811 | 175,338 | 200,519 | |
Costs and expenses: | |||||
Cost of products and sales | 58,570 | 58,948 | 122,235 | 121,417 | |
Supplies | |||||
Revenue from contracts with customers | 46,490 | 55,457 | 97,443 | 115,450 | |
Revenue | 46,490 | 55,457 | 97,443 | 115,450 | |
Costs and expenses: | |||||
Cost of products and sales | 11,758 | 15,738 | 25,308 | 32,685 | |
Software | |||||
Revenue from contracts with customers | 72,206 | 91,703 | 145,524 | 167,997 | |
Revenue | 72,206 | 91,703 | 145,524 | 167,997 | |
Costs and expenses: | |||||
Cost of products and sales | 23,419 | 26,957 | 46,802 | 51,086 | |
Rentals | |||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Revenue | 18,445 | 19,454 | 40,602 | 44,419 | |
Costs and expenses: | |||||
Cost of products and sales | 8,418 | 8,464 | 18,133 | 21,212 | |
Financing | |||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Revenue | 92,419 | 97,129 | 189,462 | 197,478 | |
Support services | |||||
Revenue from contracts with customers | 127,683 | 138,598 | 256,304 | 279,248 | |
Revenue | 127,683 | 138,598 | 256,304 | 279,248 | |
Costs and expenses: | |||||
Cost of products and sales | 40,448 | 42,306 | 82,227 | 88,371 | |
Business services | |||||
Revenue from contracts with customers | 417,985 | 369,088 | 824,508 | 756,712 | |
Revenue | 417,985 | 369,088 | 824,508 | 756,712 | |
Costs and expenses: | |||||
Cost of products and sales | $ 337,918 | $ 290,567 | $ 664,964 | $ 584,946 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 23,697 | $ 51,595 | $ 21,038 | $ 111,565 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation, net of tax of $(1,347) and $(423) in 2019, respectively | 104 | (42,942) | 21,378 | (27,859) |
Net unrealized (loss) gain on cash flow hedges, net of tax of $(80), $(78), $(24) and $154, respectively | (234) | (235) | (71) | 251 |
Net unrealized gain (loss) on investment securities, net of tax of $1,100, $(447), $2,064 and $(1,813), respectively | 3,213 | (1,305) | 6,029 | (5,296) |
Amortization of pension and postretirement costs, net of tax benefits of $2,124, $2,564, $4,773 and $5,368, respectively | 7,311 | 7,868 | 13,947 | 16,040 |
Other comprehensive income (loss), net of tax | 10,394 | (36,614) | 41,283 | (16,864) |
Comprehensive income | $ 34,091 | $ 14,981 | $ 62,321 | $ 94,701 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, tax | $ (1,347) | $ (423) | ||
Net unrealized gain (loss) on cash flow hedges, tax | (80) | $ (78) | (24) | $ 154 |
Net unrealized gain on investment securities, tax | 1,100 | (447) | 2,064 | (1,813) |
Amortization of pension and postretirement costs, tax | $ 2,124 | $ 2,564 | $ 4,773 | $ 5,368 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 771,042 | $ 867,262 |
Short-term investments | 59,516 | 59,391 |
Accounts and other receivables (net of allowance of $19,804 and $17,617, respectively) | 419,776 | 456,138 |
Short-term finance receivables (net of allowance of $12,537 and $12,454, respectively) | 682,828 | 752,773 |
Inventories | 73,347 | 62,279 |
Current income taxes | 22,474 | 5,947 |
Other current assets and prepayments | 132,878 | 100,625 |
Assets of discontinued operations | 0 | 4,854 |
Total current assets | 2,161,861 | 2,309,269 |
Property, plant and equipment, net | 416,512 | 410,114 |
Rental property and equipment, net | 36,917 | 46,228 |
Long-term finance receivables (net of allowance of $8,180 and $7,768 respectively) | 554,075 | 536,369 |
Goodwill | 1,754,610 | 1,766,511 |
Intangible assets, net | 212,596 | 227,137 |
Operating lease assets | 180,983 | 156,788 |
Noncurrent income taxes | 63,013 | 66,326 |
Other assets | 377,420 | 419,677 |
Total assets | 5,757,987 | 5,938,419 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,295,712 | 1,390,362 |
Current operating lease liabilities | 34,612 | 37,208 |
Current portion of long-term debt | 214,927 | 199,535 |
Advance billings | 211,061 | 229,379 |
Current income taxes | 6,011 | 15,284 |
Liabilities of discontinued operations | 0 | 3,276 |
Total current liabilities | 1,762,323 | 1,875,044 |
Long-term debt | 3,029,246 | 3,066,073 |
Deferred taxes on income | 264,191 | 254,353 |
Tax uncertainties and other income tax liabilities | 45,586 | 39,548 |
Noncurrent operating lease liabilities | 154,648 | 127,237 |
Other noncurrent liabilities | 449,021 | 474,322 |
Total liabilities | 5,705,015 | 5,836,577 |
Commitments and contingencies (See Note 14) | ||
Stockholders’ equity: | ||
Cumulative preferred stock, $50 par value, 4% convertible | 0 | 1 |
Cumulative preference stock, no par value, $2.12 convertible | 0 | 396 |
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued) | 323,338 | 323,338 |
Additional paid-in capital | 105,341 | 121,475 |
Retained earnings | 5,282,374 | 5,279,682 |
Accumulated other comprehensive loss | (907,678) | (948,961) |
Treasury stock, at cost (152,393,129 and 135,662,830 shares, respectively) | (4,750,403) | (4,674,089) |
Total stockholders’ equity | 52,972 | 101,842 |
Total liabilities and stockholders’ equity | $ 5,757,987 | $ 5,938,419 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 19,804 | $ 17,617 |
Short-term finance receivables allowance | 12,537 | 12,454 |
Long-term finance receivables allowance | $ 8,180 | $ 7,768 |
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) | 152,393,129 | 135,662,830 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 21,038 | $ 111,565 |
Loss (income) from discontinued operations, net of tax | 7,811 | (9,695) |
Restructuring payments | (14,283) | (27,528) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 82,813 | 80,335 |
Stock-based compensation | 9,165 | 9,153 |
Restructuring charges and asset impairments, net | 10,877 | 12,407 |
Loss on disposition of businesses | 17,683 | 0 |
Changes in operating assets and liabilities, net of acquisitions/divestitures: | ||
Decrease in accounts receivable | 51,721 | 9,907 |
Decrease in finance receivables | 41,744 | 43,249 |
Increase in inventories | (10,881) | (3,441) |
Increase in other current assets and prepayments | (35,325) | (23,657) |
Decrease in accounts payable and accrued liabilities | (74,868) | (54,616) |
Increase in current and non-current income taxes | 733 | 8,539 |
Decrease in advance billings | (12,711) | (18,598) |
Other, net | (1,854) | (24,899) |
Net cash provided by operating activities - continuing operations | 93,663 | 112,721 |
Net cash (used in) provided by operating activities - discontinued operations | (6,881) | 41,772 |
Net cash provided by operating activities | 86,782 | 154,493 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (6,391) | (48,303) |
Proceeds from sales/maturities of available-for-sale securities | 54,964 | 36,157 |
Net activity from short-term and other investments | (1,608) | 10,959 |
Capital expenditures | (61,327) | (79,481) |
Acquisitions, net of cash acquired | (4,882) | (2,407) |
Change in reserve account deposits | (8,316) | 5,959 |
Other investing activities | (8,591) | (2,500) |
Net cash used in investing activities - continuing operations | (36,151) | (79,616) |
Net cash used in investing activities - discontinued operations | 0 | (1,169) |
Net cash used in investing activities - continuing operations | (36,151) | (80,785) |
Cash flows from financing activities: | ||
Principal payments of long-term debt | (25,087) | (260,099) |
Dividends paid to stockholders | (18,346) | (70,113) |
Common stock repurchases | (100,000) | 0 |
Other financing activities | (3,337) | (49,606) |
Net cash used in financing activities | (146,770) | (379,818) |
Effect of exchange rate changes on cash and cash equivalents | (81) | (13,041) |
Change in cash and cash equivalents | (96,220) | (319,151) |
Cash and cash equivalents at beginning of period | 867,262 | 1,009,021 |
Cash and cash equivalents at end of period | 771,042 | 689,870 |
Cash interest paid | 78,280 | 89,339 |
Cash income tax payments, net of refunds | $ 17,348 | $ 19,244 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Pitney Bowes Inc. (we, us, our, or the company) is a global technology company providing innovative products and commerce solutions that power billions of transactions and help our clients navigate the complex world of commerce. We offer shipping, mailing, fulfillment, returns and cross-border ecommerce products and solutions that enable the sending of parcels and packages across the globe and customer information management, location intelligence and customer engagement products and solutions to help our clients market to their customers. Clients around the world rely on our products, solutions and services. Pitney Bowes Inc. was incorporated in the state of Delaware in 1920. For more information about us, our products, services and solutions, visit www.pb.com . Basis of Presentation 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, 2018 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, 2019 . 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, 2018 ( 2018 Annual Report). Based on their nature, we determined that certain costs previously classified as research and development and cost of business services should be classified in other line items within costs and expenses. Accordingly, the income statement for the three months ended June 30, 2018 has been revised to correct the classification of these costs by reducing research and development expense and cost of business services by $7 million and $3 million , respectively, and increasing selling, general and administrative expense and cost of equipment sales by $7 million and $3 million , respectively. The income statement for the six months ended June 30, 2018 has been revised to correct the classification of these costs by reducing research and development expense and cost of business services by $13 million and $5 million , respectively, and increasing selling, general and administrative expense and cost of equipment sales by $13 million and $5 million , respectively. The classification of certain costs of revenue recognized in the prior year have been revised to correct and conform to the current year presentation. As a result, in the income statement for the three months ended June 30, 2018 , we reduced cost of equipment sales by $1 million and cost of rentals by $1 million , and increased cost of support services by $2 million . In the income statement for the six months ended June 30, 2018 , we reduced cost of equipment sales by $3 million and cost of rentals by $2 million , and increased cost of support services by $5 million . In January 2019, we sold the direct operations and moved to a dealer model in six smaller markets within the International Mailing segment (Market Exits) and recognized a pre-tax loss of $18 million in other (income) expense. The December 31, 2018 balance sheet has been revised to reduce short-term finance receivables and advance billings by $6 million . Accounts and other receivables includes other receivables of $101 million at June 30, 2019 and $76 million at December 31, 2018 . New Accounting Pronouncements Accounting Pronouncements Adopted on January 1, 2019 On January 1, 2019, we adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842) , using the modified retrospective transition approach of applying the standard at the beginning of the earliest comparative period presented in the financial statements. Accordingly, prior period financial statements have been recast and required disclosures have been provided. We also recorded a cumulative effect adjustment as of January 1, 2017 to reduce retained earnings by $137 million . See Notes 7 and 15 for more information. From a lessor perspective, the standard simplifies the accounting for lease modifications and aligns accounting of lease contracts with revenue recognition guidance. We continue to classify leases as sales-type or operating, with the determination affecting both the pattern and classification of income recognition. There have been changes in the timing and classification of revenue related to contract modifications. There also have been changes related to the definition of a leased asset, which requires us to account for two lease components as a single lease component. Under prior guidance, one of the components was generally accounted for as a sales-type lease and the second as an operating lease. Under ASC 842, the two components are generally accounted for as a sales-type lease. As a result, certain income and costs are now accelerated that were previously recognized over the life of the lease. From a lessee perspective, the standard requires us to recognize right-of-use assets and lease liabilities for our real estate and equipment operating leases and to provide new disclosures about our leasing activities. We elected the short-term lease recognition exemption and did not recognize right-of-use assets or lease liabilities for leases with a term less than 12 months. We also elected the practical expedient to not separate lease and non-lease components for our lessee portfolio. Updates to significant accounting policies disclosed in our 2018 Annual Report due to the adoption of ASC 842 are discussed below. Equipment sales: We sell and lease equipment directly to our customers and to distributors (re-sellers) throughout the world. The amount of revenue allocated to the equipment is based on a range of observable selling prices in standalone transactions. We recognize revenue from the sale of equipment under sales-type leases as equipment sales revenue when control of the equipment transfers to the customer, which is upon shipment for self-installed products and upon installation or customer acceptance for other products. We do not typically offer any rights of return. Rentals: Rentals revenue includes revenue from mailing equipment that does not meet the criteria to be accounted for as a sales-type lease. We may invoice in advance for rentals according to the terms of the agreement. We initially defer these advanced billings and recognize rentals revenue on a straight-line basis over the rental period. Revenue generated from financing clients for the continued use of equipment subsequent to the expiration of the original lease are recognized as rentals revenue. Financing: We provide lease financing for our products primarily through sales-type leases. We also provide revolving lines of credit for the purchase of postage and supplies. We believe that our sales-type lease portfolio contains only normal collection risk. We record financing income over the lease term using the effective interest method. Financing also includes amounts related to sales-type leases that customers have extended or renewed for an additional term. Revenue for those contracts will be recognized over the term of the modified lease as financing income using the interest method. Equipment residual values are determined at the inception of the lease using estimates of fair value at the end of the lease term. Fair value estimates are based primarily on historical experience. We also consider forecasted supply and demand for products, product retirement and launch plans, client behavior, regulatory changes, remanufacturing strategies, used equipment markets, competition and technological changes. We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Estimated increases in future residual values are not recognized until the equipment is remarketed. Support services: Support services revenue includes revenue from equipment service contracts, subscriptions and meter services. Revenue is allocated to these services using selling prices charged in standalone replacement and renewal transactions. Since we have a stand-ready obligation to provide these services over the entire contract term, revenue related to these agreements is recognized on a straight-line basis over the term of the agreement. Business services: Business services revenue includes revenue from mail processing services and ecommerce solutions. These services represent a series of distinct services that are similar in nature, and revenue is recognized as the services are provided. We review third party relationships and record revenue on a gross basis when we act as a principal in a transaction or net basis when we act as an agent between a client and vendor. We consider several factors in determining whether we are acting as principal or agent, such as whether we are the primary obligor to the client, have control over the pricing or have inventory risk. On January 1, 2019, we also adopted Accounting Standards Update (ASU) 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which 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 adoption of this standard did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software . The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective beginning January 1, 2020, with early adoption permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following tables disaggregate our revenue by major source and timing of recognition: Three Months Ended June 30, 2019 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 7,882 $ 11,502 $ — $ 19,384 $ 66,167 $ 85,551 Supplies — — 32,461 14,029 — 46,490 — 46,490 Software — — — — 72,206 72,206 — 72,206 Rentals — — — — — — 18,445 18,445 Financing — — — — — — 92,419 92,419 Support services — (22 ) 108,851 18,854 — 127,683 — 127,683 Business services 282,319 128,160 6,517 989 — 417,985 — 417,985 Subtotal 282,319 128,138 155,711 45,374 72,206 683,748 $ 177,031 $ 860,779 Revenue from leasing transactions and financing Equipment sales — — 54,191 11,976 — 66,167 Rentals — — 13,540 4,905 — 18,445 Financing — — 79,975 12,444 — 92,419 Total revenue $ 282,319 $ 128,138 $ 303,417 $ 74,699 $ 72,206 $ 860,779 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 40,343 $ 25,531 $ 20,470 $ 86,344 Products/services transferred over time 282,319 128,138 115,368 19,843 51,736 597,404 Total $ 282,319 $ 128,138 $ 155,711 $ 45,374 $ 72,206 $ 683,748 Three Months Ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 10,566 $ 11,278 $ — $ 21,844 $ 71,967 $ 93,811 Supplies — — 36,271 19,186 — 55,457 — 55,457 Software — — — — 91,703 91,703 — 91,703 Rentals — — — — — — 19,454 19,454 Financing — — — — — — 97,129 97,129 Support services — — 113,977 24,621 — 138,598 — 138,598 Business services 239,100 122,730 5,664 1,594 — 369,088 — 369,088 Subtotal 239,100 122,730 166,478 56,679 91,703 676,690 $ 188,550 $ 865,240 Revenue from leasing transactions and financing Equipment sales — — 55,957 16,010 — 71,967 Rentals — — 14,339 5,115 — 19,454 Financing — — 82,127 15,002 — 97,129 Total revenue $ 239,100 $ 122,730 $ 318,901 $ 92,806 $ 91,703 $ 865,240 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 46,837 $ 30,464 $ 40,020 $ 117,321 Products/services transferred over time 239,100 122,730 119,641 26,215 51,683 559,369 Total $ 239,100 $ 122,730 $ 166,478 $ 56,679 $ 91,703 $ 676,690 Six Months Ended June 30, 2019 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 17,097 $ 23,580 $ — $ 40,677 $ 134,661 $ 175,338 Supplies — — 67,563 29,880 — 97,443 — 97,443 Software — — — — 145,524 145,524 — 145,524 Rentals — — — — — — 40,602 40,602 Financing — — — — — — 189,462 189,462 Support services — — 216,562 39,742 — 256,304 — 256,304 Business services 548,573 262,985 11,035 1,915 — 824,508 — 824,508 Subtotal 548,573 262,985 312,257 95,117 145,524 1,364,456 $ 364,725 $ 1,729,181 Revenue from leasing transactions and financing Equipment sales — — 112,086 22,575 — 134,661 Rentals — — 30,819 9,783 — 40,602 Financing — — 163,729 25,733 — 189,462 Total revenue $ 548,573 $ 262,985 $ 618,891 $ 153,208 $ 145,524 $ 1,729,181 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 84,660 $ 53,460 $ 41,442 $ 179,562 Products/services transferred over time 548,573 262,985 227,597 41,657 104,082 1,184,894 Total $ 548,573 $ 262,985 $ 312,257 $ 95,117 $ 145,524 $ 1,364,456 Six Months Ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 20,981 $ 23,074 $ — $ 44,055 $ 156,464 $ 200,519 Supplies — — 75,223 40,227 — 115,450 — 115,450 Software — — — — 167,997 167,997 — 167,997 Rentals — — — — — — 44,419 44,419 Financing — — — — — — 197,478 197,478 Support services — — 227,690 51,558 — 279,248 — 279,248 Business services 485,690 257,188 10,553 3,281 — 756,712 — 756,712 Subtotal 485,690 257,188 334,447 118,140 167,997 1,363,462 $ 398,361 $ 1,761,823 Revenue from leasing transactions and financing Equipment sales — — 124,429 32,035 — 156,464 Rentals — — 33,851 10,568 — 44,419 Financing — — 166,985 30,493 — 197,478 Total revenue $ 485,690 $ 257,188 $ 659,712 $ 191,236 $ 167,997 $ 1,761,823 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 96,204 $ 63,301 $ 65,021 $ 224,526 Products/services transferred over time 485,690 257,188 238,243 54,839 102,976 1,138,936 Total $ 485,690 $ 257,188 $ 334,447 $ 118,140 $ 167,997 $ 1,363,462 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 the rental of mailing equipment under an operating lease contract. Support services: Performance obligations include providing maintenance, professional services, and subscription and meter services for our mailing equipment. Contract terms range from one year to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance, subscription and meter services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided. Business services : Our performance obligations include providing mail processing services and ecommerce solutions. Revenue is recognized over time as the services are provided. The contract terms for these services vary, with the initial contracts in the range of one to five years, followed by annual renewal periods. Revenue from leasing transactions and financing includes revenue from equipment accounted for as sales-type leases, finance income and late fees. Contract Assets and Advance Billings from Contracts with Customers Balance sheet location June 30, 2019 December 31, 2018 Increase (Decrease) Contracts assets, current Other current assets and prepayments $ 17,050 $ 16,115 $ 935 Contracts assets, noncurrent Other assets $ 10,050 $ 13,092 $ (3,042 ) Advance billings, current Advance billings $ 200,224 $ 215,790 $ (15,566 ) Advance billings, noncurrent Other noncurrent liabilities $ 12,832 $ 12,778 $ 54 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. Contract assets decreased in the period as the invoicing of performance obligations previously satisfied exceeded the contract assets recognized during the period. 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, 2019 is due to revenue recognized during the period in excess of advance billings. Revenue recognized during the period includes $109 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: Remainder of 2019 2020 2021-2024 Total North America Mailing (1) $ 133,984 $ 231,394 $ 338,435 $ 703,813 International Mailing (1) 15,799 21,938 27,583 65,320 Software Solutions (2) 34,805 57,111 33,295 125,211 Total $ 184,588 $ 310,443 $ 399,313 $ 894,344 (1) Revenue streams bundled with our leasing contracts, primarily maintenance, meter services and other subscription 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, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The principal products and services of each reportable segment are as follows: Commerce Services: Global Ecommerce: Includes the revenue and related expenses from global 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 to qualify large volumes of First Class Mail, Marketing Mail and Bound and Packet Mail (Marketing Mail Flats and Bound Printed Matter) for postal worksharing discounts. Small & Medium Business (SMB) Solutions: North America Mailing : Includes the revenue and related expenses from mailing and shipping solutions, financing, services, supplies and other applications for small and medium businesses to 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 shipping solutions, financing, services and supplies for small and medium businesses to 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 revenue and related expenses from customer engagement, customer information, location intelligence software and data. Management uses segment earnings before interest and taxes (EBIT) to measure profitability and performance at the segment level and believes that it provides investors a useful measure of operating performance and underlying trends of the business. We determine segment EBIT by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and other items not allocated to a particular business segment. 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 and reconciliation of segment EBIT to net income. Revenue and EBIT by business segment is presented below: Revenue Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Global Ecommerce $ 282,319 $ 239,100 $ 548,573 $ 485,690 Presort Services 128,138 122,730 262,985 257,188 Commerce Services 410,457 361,830 811,558 742,878 North America Mailing 303,417 318,901 618,891 659,712 International Mailing 74,699 92,806 153,208 191,236 SMB Solutions 378,116 411,707 772,099 850,948 Software Solutions 72,206 91,703 145,524 167,997 Total revenue $ 860,779 $ 865,240 $ 1,729,181 $ 1,761,823 EBIT Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Global Ecommerce $ (15,576 ) $ (5,993 ) $ (30,176 ) $ (13,704 ) Presort Services 15,462 12,565 30,528 39,591 Commerce Services (114 ) 6,572 352 25,887 North America Mailing 112,804 120,139 223,417 248,707 International Mailing 11,934 13,091 23,724 29,113 SMB Solutions 124,738 133,230 247,141 277,820 Software Solutions 2,002 18,433 3,694 20,925 Total segment EBIT 126,626 158,235 251,187 324,632 Reconciliation of Segment EBIT to net income: Unallocated corporate expenses (43,785 ) (46,477 ) (99,474 ) (97,559 ) Restructuring charges and asset impairments, net (7,279 ) (11,503 ) (10,877 ) (12,407 ) Interest, net (39,062 ) (41,969 ) (78,028 ) (85,047 ) Other income (expense) 27 — (17,683 ) — Transaction costs (2,150 ) — (3,876 ) (1,055 ) Provision for income taxes (4,099 ) (7,899 ) (12,400 ) (26,694 ) Income from continuing operations 30,278 50,387 28,849 101,870 (Loss) income from discontinued operations, net of tax (6,581 ) 1,208 (7,811 ) 9,695 Net income $ 23,697 $ 51,595 $ 21,038 $ 111,565 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations includes our Document Messaging Technology production mail business and supporting software that was sold in July 2018. Selected financial information is as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue $ — $ 89,201 $ — $ 191,435 Earnings (loss) from discontinued operations $ — $ 8,278 $ (663 ) $ 21,620 Loss on sale (8,589 ) (7,238 ) (9,257 ) (8,777 ) (Loss) income from discontinued operations before taxes (8,589 ) 1,040 (9,920 ) 12,843 Tax (benefit) provision (2,008 ) (168 ) (2,109 ) 3,148 (Loss) income from discontinued operations, net of tax $ (6,581 ) $ 1,208 $ (7,811 ) $ 9,695 |
Earnings per Share (EPS)
Earnings per Share (EPS) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share (EPS) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Income from continuing operations $ 30,278 $ 50,387 $ 28,849 $ 101,870 (Loss) income from discontinued operations, net of tax (6,581 ) 1,208 (7,811 ) 9,695 Net income (numerator for diluted EPS) 23,697 51,595 21,038 111,565 Less: Preference stock dividend — 8 8 16 Income attributable to common stockholders (numerator for basic EPS) $ 23,697 $ 51,587 $ 21,030 $ 111,549 Denominator: Weighted-average shares used in basic EPS 177,192 187,180 181,446 187,004 Dilutive effect of common stock equivalents 1,089 934 1,192 1,053 Weighted-average shares used in diluted EPS 178,281 188,114 182,638 188,057 Basic earnings (loss) per share (1) : Continuing operations $ 0.17 $ 0.27 $ 0.16 $ 0.54 Discontinued operations (0.04 ) 0.01 (0.04 ) 0.05 Net income $ 0.13 $ 0.28 $ 0.12 $ 0.60 Diluted earnings (loss) per share (1) : Continuing operations $ 0.17 $ 0.27 $ 0.16 $ 0.54 Discontinued operations (0.04 ) 0.01 (0.04 ) 0.05 Net income $ 0.13 $ 0.27 $ 0.12 $ 0.59 Anti-dilutive options excluded from diluted earnings per share: 16,297 12,453 16,077 11,959 (1) The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 consisted of the following: June 30, December 31, Raw materials $ 13,740 $ 8,231 Supplies and service parts 23,701 21,841 Finished products 40,389 36,690 Inventory at FIFO cost 77,830 66,762 Excess of FIFO cost over LIFO cost (4,483 ) (4,483 ) Total inventory, net $ 73,347 $ 62,279 |
Finance Assets and Lessor Opera
Finance Assets and Lessor Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Finance Assets and Lessor Operating Leases | Finance Assets and Lessor Operating Leases Finance Assets 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, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,081,063 $ 197,145 $ 1,278,208 $ 1,110,896 $ 242,036 $ 1,352,932 Unguaranteed residual values 45,279 11,676 56,955 52,637 12,772 65,409 Unearned income (349,996 ) (47,367 ) (397,363 ) (383,453 ) (55,113 ) (438,566 ) Allowance for credit losses (11,322 ) (2,262 ) (13,584 ) (10,252 ) (2,356 ) (12,608 ) Net investment in sales-type lease receivables 765,024 159,192 924,216 769,828 197,339 967,167 Loan receivables Loan receivables 289,694 30,126 319,820 300,319 29,270 329,589 Allowance for credit losses (6,374 ) (759 ) (7,133 ) (6,777 ) (837 ) (7,614 ) Net investment in loan receivables 283,320 29,367 312,687 293,542 28,433 321,975 Net investment in finance receivables $ 1,048,344 $ 188,559 $ 1,236,903 $ 1,063,370 $ 225,772 $ 1,289,142 Loans receivable are due within one year. Maturities of gross sales-type lease finance receivables at June 30, 2019 were as follows: Sales-type Lease Receivables North America International Total Remaining for year ending December 31, 2019 $ 381,156 $ 39,908 $ 421,064 Year ending December 31, 2020 298,935 56,712 355,647 Year ending December 31, 2021 209,673 44,544 254,217 Year ending December 31, 2022 125,705 29,828 155,533 Year ending December 31, 2023 57,256 16,823 74,079 Thereafter 8,338 9,330 17,668 Total $ 1,081,063 $ 197,145 $ 1,278,208 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. As of June 30, 2019 , 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, 2019 and 2018 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2019 $ 10,252 $ 2,356 $ 6,777 $ 837 $ 20,222 Amounts charged to expense 3,660 455 2,329 315 6,759 Write-offs and other (2,590 ) (549 ) (2,732 ) (393 ) (6,264 ) Balance at June 30, 2019 $ 11,322 $ 2,262 $ 6,374 $ 759 $ 20,717 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 3,506 250 10,247 Write-offs and other (2,538 ) (933 ) (3,735 ) (330 ) (7,536 ) Balance at June 30, 2018 $ 11,129 $ 2,406 $ 6,869 $ 940 $ 21,344 Aging of Receivables The aging of gross finance receivables at June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 1,051,352 $ 192,135 $ 283,809 $ 29,866 $ 1,557,162 > 90 days 29,711 5,010 5,885 260 40,866 Total $ 1,081,063 $ 197,145 $ 289,694 $ 30,126 $ 1,598,028 Past due amounts > 90 days Still accruing interest $ 6,467 $ 1,410 $ 1,932 $ 116 $ 9,925 Not accruing interest 23,244 3,600 3,953 144 30,941 Total $ 29,711 $ 5,010 $ 5,885 $ 260 $ 40,866 December 31, 2018 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 1,069,288 $ 238,114 $ 294,126 $ 29,079 $ 1,630,607 > 90 days 41,608 3,922 6,193 191 51,914 Total $ 1,110,896 $ 242,036 $ 300,319 $ 29,270 $ 1,682,521 Past due amounts > 90 days Still accruing interest $ 7,917 $ 1,111 $ 1,769 $ 72 $ 10,869 Not accruing interest 33,691 2,811 4,424 119 41,045 Total $ 41,608 $ 3,922 $ 6,193 $ 191 $ 51,914 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 are in place to track 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, 2019 and December 31, 2018 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 $ 893,068 $ 922,414 Medium 131,312 131,650 High 20,930 22,110 Not Scored 35,753 34,722 Total $ 1,081,063 $ 1,110,896 Loan receivables Low $ 229,888 $ 238,620 Medium 42,731 43,952 High 5,703 5,947 Not Scored 11,372 11,800 Total $ 289,694 $ 300,319 Lease Income Lease income from sales-type leases for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Profit recognized at commencement (1) $ 34,320 $ 39,642 $ 70,678 $ 86,929 Interest income 58,045 60,855 117,523 122,687 Total lease income from sales-type leases $ 92,365 $ 100,497 $ 188,201 $ 209,616 (1) Lease contracts do not include variable lease payments. Lessor Operating Leases We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows: Remaining for year ending December 31, 2019 $ 18,383 Year ending December 31, 2020 27,684 Year ending December 31, 2021 12,394 Year ending December 31, 2022 6,348 Year ending December 31, 2023 2,886 Thereafter 182 Total $ 67,877 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 484,597 $ (294,244 ) $ 190,353 $ 480,837 $ (281,190 ) $ 199,647 Software & technology 164,849 (147,130 ) 17,719 165,088 (143,877 ) 21,211 Trademarks & other 40,105 (35,581 ) 4,524 40,170 (33,891 ) 6,279 Total intangible assets $ 689,551 $ (476,955 ) $ 212,596 $ 686,095 $ (458,958 ) $ 227,137 Amortization expense was $10 million and $11 million for the three months ended June 30, 2019 and 2018 , respectively, and $21 million and $22 million for the six months ended June 30, 2019 and 2018 , respectively. Future amortization expense as of June 30, 2019 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. Remaining for year ending December 31, 2019 $ 19,898 Year ending December 31, 2020 35,551 Year ending December 31, 2021 31,033 Year ending December 31, 2022 29,801 Year ending December 31, 2023 26,726 Thereafter 69,587 Total $ 212,596 Goodwill Changes in the carrying value of goodwill, by reporting segment, for the six months ended June 30, 2019 are shown in the table below. December 31, 2018 Divestiture Currency impact June 30, Global Ecommerce $ 609,431 $ — $ — $ 609,431 Presort Services 207,465 — — 207,465 Commerce Services 816,896 — — 816,896 North America Mailing 368,248 — 326 368,574 International Mailing 147,207 (10,490 ) (1,537 ) 135,180 SMB Solutions 515,455 (10,490 ) (1,211 ) 503,754 Software Solutions 434,160 — (200 ) 433,960 Total goodwill $ 1,766,511 $ (10,490 ) $ (1,411 ) $ 1,754,610 In January 2019, we wrote off $10 million of goodwill associated with Market Exits. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 . June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 237,848 $ 321,863 $ — $ 559,711 Equity securities — 22,372 — 22,372 Commingled fixed income securities 1,632 21,212 — 22,844 Government and related securities 78,842 7,550 — 86,392 Corporate debt securities — 50,774 — 50,774 Mortgage-backed / asset-backed securities — 85,415 — 85,415 Derivatives Foreign exchange contracts — 345 — 345 Total assets $ 318,322 $ 509,531 $ — $ 827,853 Liabilities: Derivatives Foreign exchange contracts $ — $ (297 ) $ — $ (297 ) Total liabilities $ — $ (297 ) $ — $ (297 ) December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 220,756 $ 391,891 $ — $ 612,647 Equity securities — 19,133 — 19,133 Commingled fixed income securities 1,570 20,141 — 21,711 Government and related securities 98,790 9,787 — 108,577 Corporate debt securities — 56,938 — 56,938 Mortgage-backed / asset-backed securities — 98,334 — 98,334 Derivatives Foreign exchange contracts — 2,031 — 2,031 Total assets $ 321,116 $ 598,255 $ — $ 919,371 Liabilities: Derivatives Foreign exchange contracts $ — $ (735 ) $ — $ (735 ) Total liabilities $ — $ (735 ) $ — $ (735 ) Investment Securities The valuation of investment securities is based on the market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification into the fair value hierarchy: • Money Market Funds / Commercial Paper: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2. • Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2. • Commingled Fixed Income Securities: Commingled fixed income securities are 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 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange. • 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 Investment securities are classified as available-for-sale and recorded at fair value. Unrealized holding gains and losses, net of tax, are recorded in accumulated other comprehensive income (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, 2019 and December 31, 2018 consisted of the following: June 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 85,292 $ 1,063 $ (47 ) $ 86,308 Corporate debt securities 49,507 1,320 (53 ) 50,774 Commingled fixed income securities 1,656 — (24 ) 1,632 Mortgage-backed / asset-backed securities 85,058 905 (548 ) 85,415 Total $ 221,513 $ 3,288 $ (672 ) $ 224,129 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 109,776 $ 47 $ (1,336 ) $ 108,487 Corporate debt securities 58,714 4 (1,780 ) 56,938 Commingled fixed income securities 1,637 — (67 ) 1,570 Mortgage-backed / asset-backed securities 100,186 167 (2,019 ) 98,334 Total $ 270,313 $ 218 $ (5,202 ) $ 265,329 The aggregate unrealized holding losses of investment securities in a loss position at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Fair Value Gross unrealized losses Fair Value Gross unrealized losses Less than 12 continuous months $ 502 $ 2 $ 48,318 $ 847 Greater than 12 continuous months 56,970 670 177,331 4,355 Total $ 57,472 $ 672 $ 225,649 $ 5,202 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, 2019 were as follows: Amortized cost Estimated fair value Within 1 year $ 47,535 $ 47,589 After 1 year through 5 years 68,901 69,407 After 5 years through 10 years 34,951 36,121 After 10 years 70,126 71,012 Total $ 221,513 $ 224,129 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, 2019 and December 31, 2018 , we had outstanding contracts associated with these anticipated transactions with notional amounts of $9 million and $8 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 in the three months ended June 30, 2019 . Interest Rate Swap We had 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. This swap matured in September 2018. While outstanding, the swap was designated as a cash flow hedge and the effective portion of the gain or loss on the cash flow hedge was included in AOCI in the period that the change in fair value occurred and reclassified to earnings in the period that the hedged item was recorded in earnings. The fair value of derivative instruments at June 30, 2019 and December 31, 2018 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 $ 51 $ 61 Accounts payable and accrued liabilities (190 ) (104 ) Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 294 1,970 Accounts payable and accrued liabilities (107 ) (631 ) Total derivative assets $ 345 $ 2,031 Total derivative liabilities (297 ) (735 ) Total net derivative asset $ 48 $ 1,296 The majority of the amounts included in AOCI at June 30, 2019 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, 2019 and 2018 : 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 2019 2018 2019 2018 Foreign exchange contracts $ (320 ) $ 119 Revenue $ (36 ) $ 79 Cost of sales 29 (1 ) Interest rate swap — (771 ) Interest Expense — — $ (320 ) $ (652 ) $ (7 ) $ 78 Six 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 2019 2018 2019 2018 Foreign exchange contracts $ 25 $ 154 Revenue $ 75 $ 76 Cost of sales 45 (85 ) Interest rate swap — (952 ) Interest Expense — — $ 25 $ (798 ) $ 120 $ (9 ) 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, 2019 and 2018 . All outstanding contracts at June 30, 2019 mature within 12 months. Three Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2019 2018 Foreign exchange contracts Selling, general and administrative expense $ (65 ) $ (14,828 ) Six Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2019 2018 Foreign exchange contracts Selling, general and administrative expense $ 5,205 $ (18,396 ) 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, 2019 , we had no cash collateral posted. 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, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying value $ 3,244,173 $ 3,265,608 Fair value $ 3,101,477 $ 3,003,678 |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairments | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Asset Impairments | Restructuring Charges and Asset Impairments Restructuring Charges Activity in our restructuring reserves for the six months ended June 30, 2019 and 2018 was as follows: Severance and benefits costs Other exit costs Total Balance at January 1, 2019 $ 13,641 $ 1,808 $ 15,449 Expenses, net 8,379 707 9,086 Cash payments (12,064 ) (2,219 ) (14,283 ) Balance at June 30, 2019 $ 9,956 $ 296 $ 10,252 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 The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 months. Asset Impairments Asset impairment charges were $1 million |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt at June 30, 2019 and December 31, 2018 consisted of the following: Interest rate June 30, 2019 December 31, 2018 Notes due September 2020 3.875% $ 300,000 $ 300,000 Notes due October 2021 3.875% 600,000 600,000 Notes due May 2022 4.625% 400,000 400,000 Notes due April 2023 4.95% 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 605,000 630,000 Other debt 5,210 5,297 Principal amount 3,271,051 3,296,138 Less: unamortized costs, net 26,878 30,530 Total debt 3,244,173 3,265,608 Less: current portion long-term debt 214,927 199,535 Long-term debt $ 3,029,246 $ 3,066,073 Interest rates on certain notes are subject to adjustment based on changes in our credit ratings. In April 2019, Moody's lowered our corporate credit rating from Ba1 to Ba2. As a result, the interest rate on the May 2022 notes increased 0.25% in the quarter and the interest rates on the September 2020 notes, October 2021 notes and April 2023 notes will increase 0.25% effective after the next interest payment date. During the first half of 2019, we repaid $25 million of principal related to our term loans. |
Pensions and Other Benefit Prog
Pensions and Other Benefit Programs | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Programs | Pensions and Other Benefit Programs The components of net periodic benefit (income) cost 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, 2019 2018 2019 2018 2019 2018 Service cost $ 21 $ 9 $ 388 $ 575 $ 228 $ 405 Interest cost 15,708 15,108 4,308 4,591 1,637 1,607 Expected return on plan assets (23,184 ) (25,119 ) (8,505 ) (9,118 ) — — Amortization of transition credit — — (1 ) (2 ) — — Amortization of prior service (credit) cost (15 ) (15 ) 60 (18 ) 81 88 Amortization of net actuarial loss 6,037 7,628 1,572 1,870 503 881 Settlement (1) 801 — 397 — — — Net periodic benefit (income) cost $ (632 ) $ (2,389 ) $ (1,781 ) $ (2,102 ) $ 2,449 $ 2,981 Contributions to benefit plans $ 2,423 $ 1,906 $ 878 $ 769 $ 4,457 $ 4,316 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, 2019 2018 2019 2018 2019 2018 Service cost $ 42 $ 46 $ 772 $ 1,164 $ 483 $ 811 Interest cost 31,586 30,724 8,796 9,287 3,291 3,210 Expected return on plan assets (46,363 ) (50,543 ) (17,269 ) (18,304 ) — — Amortization of transition credit — — (3 ) (3 ) — — Amortization of prior service (credit) cost (30 ) (30 ) 123 (37 ) 161 176 Amortization of net actuarial loss 13,073 15,704 3,184 3,783 1,014 1,815 Settlement (1) 801 — 397 — — — Net periodic benefit (income) cost $ (891 ) $ (4,099 ) $ (4,000 ) $ (4,110 ) $ 4,949 $ 6,012 Contributions to benefit plans $ 4,051 $ 3,194 $ 9,088 $ 9,979 $ 9,213 $ 9,111 (1) Approximately $0.7 million and $0.3 million of total settlement charges were recorded in restructuring charges and discontinued operations, respectively, for the three and six months ended June 30, 2019. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended June 30, 2019 and 2018 was 11.9% and 13.6% , respectively. These rates include benefits from the resolution of certain tax examinations of $4 million and $3 million , respectively. The effective tax rate for the six months ended June 30, 2019 and 2018 was 30.1% and 20.8% , respectively. The effective tax rate for the six months ended June 30, 2019 includes a $2 million tax on the $18 million book loss from Market Exits, primarily due to nondeductible basis differences. The effective tax rate for each of the six months ended June 30, 2019 and 2018 includes a benefit of $6 million from the resolution of certain tax examinations and a charge of $2 million 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. At December 31, 2018, we had a deferred tax asset valuation allowance of $142 million . It is reasonably possible that within the next 12 months, there may be sufficient positive evidence to release approximately $20 million of the valuation allowance. The release of this allowance would result in a decrease to income tax expense. 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 30% of our unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 as of June 30, 2019 . However, as litigation is inherently unpredictable, there can be no assurances in this regard. In August 2018, the Company, certain of its directors, officers and several banks who served as underwriters, were named as defendants in City of Livonia Retiree Health and Disability Benefits Plan v. Pitney Bowes Inc. et al. , a putative class action lawsuit filed in Connecticut state court. The complaint asserts claims under the Securities Act of 1933, as amended, on behalf of those who purchased notes issued by the Company in connection with a September 13, 2017 offering, alleging, among other things, that the Company failed to make certain disclosures relating to components of its third quarter 2017 performance at the time of the notes offering. The complaint seeks compensatory damages and other relief. In addition, in December 2018 and then in February 2019, certain of the Company’s officers and directors were named as defendants in two virtually identical derivative actions purportedly brought on behalf of the Company, Clem v. Lautenbach et al. and Devolin v. Lautenbach et al. These two actions, both filed by the same counsel in Connecticut state court, allege, among other things, breaches of fiduciary duty relating to these same disclosures, and seek compensatory damages and other relief derivatively for the benefit of the Company. Although litigation outcomes are inherently unpredictable, we believe these matters are without merit and intend to defend them vigorously. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. |
Leased Assets and Liabilities
Leased Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leased Assets and Liabilities | Leased Assets and Liabilities We lease real estate and equipment under operating and finance lease agreements. Our leases have terms of up to 15 years, some of which may include the option to extend the lease for up to 5 years. At lease commencement, we record a lease liability and corresponding right-of-use asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. Lease payments include fixed payments and variable payments that are tied to an index. Variable payments not tied to an index are excluded from the right-of-use asset and lease liability and primarily include common area maintenance charges, property taxes, insurance and mileage. The present value of our lease liability is determined using our incremental borrowing rate at lease inception. Information regarding our operating and financing leases are as follows: Leases Balance Sheet Location June 30, 2019 December 31, 2018 Assets Operating Operating lease assets $ 180,983 $ 156,788 Finance Property, plant and equipment, net 11,501 10,683 Total leased assets $ 192,484 $ 167,471 Liabilities Operating Current operating lease liabilities $ 34,612 $ 37,208 Noncurrent operating lease liabilities 154,648 127,237 Finance Accounts payable and accrued liabilities 2,809 2,708 Other noncurrent liabilities 7,739 7,054 Total lease liabilities $ 199,808 $ 174,207 Three Months Ended June 30, Six Months Ended June 30, Lease Cost 2019 2018 2019 2018 Operating lease expense $ 11,695 $ 11,145 $ 23,786 $ 23,422 Finance lease expense Amortization of leased assets 811 640 1,691 1,242 Interest on lease liabilities 176 125 348 243 Variable lease expense 7,988 7,952 13,852 13,094 Sublease income (679 ) (203 ) (1,345 ) (452 ) Total expense $ 19,991 $ 19,659 $ 38,332 $ 37,549 Operating lease expense includes immaterial amounts related to leases with terms of 12 months or less. Future Lease Payments Operating Leases Finance Leases Total Remaining for year ending December 31, 2019 $ 22,257 $ 1,803 $ 24,060 Year ending December 31, 2020 42,878 3,105 45,983 Year ending December 31, 2021 35,937 2,712 38,649 Year ending December 31, 2022 27,637 2,162 29,799 Year ending December 31, 2023 21,032 1,518 22,550 Thereafter 89,177 813 89,990 Total 238,918 12,113 251,031 Less: present value discount 49,658 1,565 51,223 Lease liability $ 189,260 $ 10,548 $ 199,808 Operating leases exclude $28 million of minimum lease payments for leases signed but not yet commenced at June 30, 2019. Lease Term and Discount Rate June 30, 2019 December 31, 2018 Weighted-average remaining lease term Operating leases 7.5 years 5.9 years Finance leases 4.1 years 3.8 years Weighted-average discount rate Operating leases 5.8% 4.7% Finance leases 6.6% 6.2% Three Months Ended June 30, Six Months Ended June 30, Cash Flow Information 2019 2018 2019 2018 Operating cash outflows - operating leases $ 11,073 $ 10,987 $ 22,870 $ 22,738 Operating cash outflows - finance leases $ 176 $ 125 $ 348 $ 243 Financing cash outflows - finance leases $ 775 $ 592 $ 1,520 $ 1,156 Leased assets obtained in exchange for new lease obligations Operating leases $ 40,907 $ 3,998 $ 49,060 $ 6,994 Finance leases $ 430 $ 88 $ 2,103 $ 1,160 |
Leased Assets and Liabilities | Leased Assets and Liabilities We lease real estate and equipment under operating and finance lease agreements. Our leases have terms of up to 15 years, some of which may include the option to extend the lease for up to 5 years. At lease commencement, we record a lease liability and corresponding right-of-use asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. Lease payments include fixed payments and variable payments that are tied to an index. Variable payments not tied to an index are excluded from the right-of-use asset and lease liability and primarily include common area maintenance charges, property taxes, insurance and mileage. The present value of our lease liability is determined using our incremental borrowing rate at lease inception. Information regarding our operating and financing leases are as follows: Leases Balance Sheet Location June 30, 2019 December 31, 2018 Assets Operating Operating lease assets $ 180,983 $ 156,788 Finance Property, plant and equipment, net 11,501 10,683 Total leased assets $ 192,484 $ 167,471 Liabilities Operating Current operating lease liabilities $ 34,612 $ 37,208 Noncurrent operating lease liabilities 154,648 127,237 Finance Accounts payable and accrued liabilities 2,809 2,708 Other noncurrent liabilities 7,739 7,054 Total lease liabilities $ 199,808 $ 174,207 Three Months Ended June 30, Six Months Ended June 30, Lease Cost 2019 2018 2019 2018 Operating lease expense $ 11,695 $ 11,145 $ 23,786 $ 23,422 Finance lease expense Amortization of leased assets 811 640 1,691 1,242 Interest on lease liabilities 176 125 348 243 Variable lease expense 7,988 7,952 13,852 13,094 Sublease income (679 ) (203 ) (1,345 ) (452 ) Total expense $ 19,991 $ 19,659 $ 38,332 $ 37,549 Operating lease expense includes immaterial amounts related to leases with terms of 12 months or less. Future Lease Payments Operating Leases Finance Leases Total Remaining for year ending December 31, 2019 $ 22,257 $ 1,803 $ 24,060 Year ending December 31, 2020 42,878 3,105 45,983 Year ending December 31, 2021 35,937 2,712 38,649 Year ending December 31, 2022 27,637 2,162 29,799 Year ending December 31, 2023 21,032 1,518 22,550 Thereafter 89,177 813 89,990 Total 238,918 12,113 251,031 Less: present value discount 49,658 1,565 51,223 Lease liability $ 189,260 $ 10,548 $ 199,808 Operating leases exclude $28 million of minimum lease payments for leases signed but not yet commenced at June 30, 2019. Lease Term and Discount Rate June 30, 2019 December 31, 2018 Weighted-average remaining lease term Operating leases 7.5 years 5.9 years Finance leases 4.1 years 3.8 years Weighted-average discount rate Operating leases 5.8% 4.7% Finance leases 6.6% 6.2% Three Months Ended June 30, Six Months Ended June 30, Cash Flow Information 2019 2018 2019 2018 Operating cash outflows - operating leases $ 11,073 $ 10,987 $ 22,870 $ 22,738 Operating cash outflows - finance leases $ 176 $ 125 $ 348 $ 243 Financing cash outflows - finance leases $ 775 $ 592 $ 1,520 $ 1,156 Leased assets obtained in exchange for new lease obligations Operating leases $ 40,907 $ 3,998 $ 49,060 $ 6,994 Finance leases $ 430 $ 88 $ 2,103 $ 1,160 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Changes in stockholders’ equity for the three months ended June 30, 2019 and 2018 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 April 1, 2019 $ 1 $ 388 $ 323,338 $ 109,166 $ 5,267,615 $ (918,072 ) $ (4,696,080 ) $ 86,356 Net income — — — — 23,697 — — 23,697 Other comprehensive income — — — — — 10,394 — 10,394 Dividends paid ($0.05 per common share) — — — — (8,938 ) — — (8,938 ) Issuance of common stock — — — (3,807 ) — — 4,024 217 Conversion to common stock — (122 ) — (2,389 ) — — 2,511 — Redemption of preferred/preference stock (1 ) (266 ) — (10 ) — — — (277 ) Stock-based compensation expense — — — 2,381 — — — 2,381 Repurchase of common stock — — — — — — (60,858 ) (60,858 ) Balance at June 30, 2019 $ — $ — $ 323,338 $ 105,341 $ 5,282,374 $ (907,678 ) $ (4,750,403 ) $ 52,972 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at April 1, 2018 $ 1 $ 422 $ 323,338 $ 119,647 $ 5,087,090 $ (775,190 ) $ (4,692,394 ) $ 62,914 Net income — — — — 51,595 — — 51,595 Other comprehensive loss — — — — — (36,614 ) — (36,614 ) Dividends paid ($0.1875 per common share) — — — — (35,097 ) — — (35,097 ) Issuance of common stock — — — (2,660 ) — — 2,943 283 Conversion to common stock — (7 ) — (135 ) — — 142 — Stock-based compensation expense — — — 5,880 — — — 5,880 Balance at June 30, 2018 $ 1 $ 415 $ 323,338 $ 122,732 $ 5,103,588 $ (811,804 ) $ (4,689,309 ) $ 48,961 Changes in stockholders’ equity for the six months ended June 30, 2019 and 2018 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 January 1, 2019 $ 1 $ 396 $ 323,338 $ 121,475 $ 5,279,682 $ (948,961 ) $ (4,674,089 ) $ 101,842 Net income — — — — 21,038 — — 21,038 Other comprehensive income — — — — — 41,283 — 41,283 Dividends paid ($0.10 per common share) — — — — (18,346 ) — — (18,346 ) Issuance of common stock — — — (22,731 ) — — 20,998 (1,733 ) Conversion to common stock — (130 ) — (2,558 ) — — 2,688 — Redemption of preferred/preference stock (1 ) (266 ) — (10 ) — — — (277 ) Stock-based compensation expense — — — 9,165 — — — 9,165 Repurchase of common stock — — — — — — (100,000 ) (100,000 ) Balance at June 30, 2019 $ — $ — $ 323,338 $ 105,341 $ 5,282,374 $ (907,678 ) $ (4,750,403 ) $ 52,972 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2018 $ 1 $ 441 $ 323,338 $ 138,367 $ 5,074,343 $ (794,940 ) $ (4,710,997 ) $ 30,553 Cumulative effect of accounting change — — — — (12,207 ) — — (12,207 ) Net income — — — — 111,565 — — 111,565 Other comprehensive loss — — — — — (16,864 ) — (16,864 ) Dividends paid ($0.375 per common share) — — — — (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 $ 5,103,588 $ (811,804 ) $ (4,689,309 ) $ 48,961 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Reclassifications out of AOCI for the three and six months ended June 30, 2019 and 2018 were as follows: Amount Reclassified from AOCI (1) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Losses) gains on cash flow hedges Revenue $ (36 ) $ 79 $ 75 $ 76 Cost of sales 29 (1 ) 45 (85 ) Interest expense, net — (507 ) — (1,014 ) Total before tax (7 ) (429 ) 120 (1,023 ) Income tax benefit (provision) 1 110 (31 ) 261 Net of tax $ (6 ) $ (319 ) $ 89 $ (762 ) (Losses) gains on available for sale securities Interest expense, net $ (81 ) $ 214 $ (104 ) $ 190 Income tax benefit (provision) 21 (54 ) 27 (48 ) Net of tax $ (60 ) $ 160 $ (77 ) $ 142 Pension and Postretirement Benefit Plans (2) Transition credit $ 1 $ 2 $ 3 $ 3 Prior service costs (126 ) (55 ) (254 ) (109 ) Actuarial losses (8,112 ) (10,379 ) (17,271 ) (21,302 ) Settlements (1,198 ) — (1,198 ) — Total before tax (9,435 ) (10,432 ) (18,720 ) (21,408 ) Income tax benefit 2,124 2,564 4,773 5,368 Net of tax $ (7,311 ) $ (7,868 ) $ (13,947 ) $ (16,040 ) (1) Amounts in parentheses indicate reductions to income and increases to other comprehensive income. (2) Reclassified from AOCI into other components of net pension and postretirement cost (see Note 12 for additional details). Changes in AOCI for the six months ended June 30, 2019 and 2018 were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2019 $ 191 $ (3,061 ) $ (846,461 ) $ (99,630 ) $ (948,961 ) Other comprehensive income before reclassifications (1) 18 5,952 — 21,378 27,348 Reclassifications into earnings (1), (2) (89 ) 77 13,947 — 13,935 Net other comprehensive income (71 ) 6,029 13,947 21,378 41,283 Balance at June 30, 2019 $ 120 $ 2,968 $ (832,514 ) $ (78,252 ) $ (907,678 ) 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 ) $ (47,331 ) $ (794,940 ) Other comprehensive income (loss) before reclassifications (1) (511 ) (5,154 ) — (27,859 ) (33,524 ) Reclassifications into earnings (1), (2) 762 (142 ) 16,040 — 16,660 Net other comprehensive income (loss) 251 (5,296 ) 16,040 (27,859 ) (16,864 ) Balance at June 30, 2018 $ (155 ) $ (3,699 ) $ (732,760 ) $ (75,190 ) $ (811,804 ) (1) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (2) See table above for additional details of these reclassifications. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted on January 1, 2019 On January 1, 2019, we adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842) , using the modified retrospective transition approach of applying the standard at the beginning of the earliest comparative period presented in the financial statements. Accordingly, prior period financial statements have been recast and required disclosures have been provided. We also recorded a cumulative effect adjustment as of January 1, 2017 to reduce retained earnings by $137 million . See Notes 7 and 15 for more information. From a lessor perspective, the standard simplifies the accounting for lease modifications and aligns accounting of lease contracts with revenue recognition guidance. We continue to classify leases as sales-type or operating, with the determination affecting both the pattern and classification of income recognition. There have been changes in the timing and classification of revenue related to contract modifications. There also have been changes related to the definition of a leased asset, which requires us to account for two lease components as a single lease component. Under prior guidance, one of the components was generally accounted for as a sales-type lease and the second as an operating lease. Under ASC 842, the two components are generally accounted for as a sales-type lease. As a result, certain income and costs are now accelerated that were previously recognized over the life of the lease. From a lessee perspective, the standard requires us to recognize right-of-use assets and lease liabilities for our real estate and equipment operating leases and to provide new disclosures about our leasing activities. We elected the short-term lease recognition exemption and did not recognize right-of-use assets or lease liabilities for leases with a term less than 12 months. We also elected the practical expedient to not separate lease and non-lease components for our lessee portfolio. Updates to significant accounting policies disclosed in our 2018 Annual Report due to the adoption of ASC 842 are discussed below. Equipment sales: We sell and lease equipment directly to our customers and to distributors (re-sellers) throughout the world. The amount of revenue allocated to the equipment is based on a range of observable selling prices in standalone transactions. We recognize revenue from the sale of equipment under sales-type leases as equipment sales revenue when control of the equipment transfers to the customer, which is upon shipment for self-installed products and upon installation or customer acceptance for other products. We do not typically offer any rights of return. Rentals: Rentals revenue includes revenue from mailing equipment that does not meet the criteria to be accounted for as a sales-type lease. We may invoice in advance for rentals according to the terms of the agreement. We initially defer these advanced billings and recognize rentals revenue on a straight-line basis over the rental period. Revenue generated from financing clients for the continued use of equipment subsequent to the expiration of the original lease are recognized as rentals revenue. Financing: We provide lease financing for our products primarily through sales-type leases. We also provide revolving lines of credit for the purchase of postage and supplies. We believe that our sales-type lease portfolio contains only normal collection risk. We record financing income over the lease term using the effective interest method. Financing also includes amounts related to sales-type leases that customers have extended or renewed for an additional term. Revenue for those contracts will be recognized over the term of the modified lease as financing income using the interest method. Equipment residual values are determined at the inception of the lease using estimates of fair value at the end of the lease term. Fair value estimates are based primarily on historical experience. We also consider forecasted supply and demand for products, product retirement and launch plans, client behavior, regulatory changes, remanufacturing strategies, used equipment markets, competition and technological changes. We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Estimated increases in future residual values are not recognized until the equipment is remarketed. Support services: Support services revenue includes revenue from equipment service contracts, subscriptions and meter services. Revenue is allocated to these services using selling prices charged in standalone replacement and renewal transactions. Since we have a stand-ready obligation to provide these services over the entire contract term, revenue related to these agreements is recognized on a straight-line basis over the term of the agreement. Business services: Business services revenue includes revenue from mail processing services and ecommerce solutions. These services represent a series of distinct services that are similar in nature, and revenue is recognized as the services are provided. We review third party relationships and record revenue on a gross basis when we act as a principal in a transaction or net basis when we act as an agent between a client and vendor. We consider several factors in determining whether we are acting as principal or agent, such as whether we are the primary obligor to the client, have control over the pricing or have inventory risk. On January 1, 2019, we also adopted Accounting Standards Update (ASU) 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which 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 adoption of this standard did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software . The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective beginning January 1, 2020, with early adoption permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue by major source and timing of recognition: Three Months Ended June 30, 2019 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 7,882 $ 11,502 $ — $ 19,384 $ 66,167 $ 85,551 Supplies — — 32,461 14,029 — 46,490 — 46,490 Software — — — — 72,206 72,206 — 72,206 Rentals — — — — — — 18,445 18,445 Financing — — — — — — 92,419 92,419 Support services — (22 ) 108,851 18,854 — 127,683 — 127,683 Business services 282,319 128,160 6,517 989 — 417,985 — 417,985 Subtotal 282,319 128,138 155,711 45,374 72,206 683,748 $ 177,031 $ 860,779 Revenue from leasing transactions and financing Equipment sales — — 54,191 11,976 — 66,167 Rentals — — 13,540 4,905 — 18,445 Financing — — 79,975 12,444 — 92,419 Total revenue $ 282,319 $ 128,138 $ 303,417 $ 74,699 $ 72,206 $ 860,779 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 40,343 $ 25,531 $ 20,470 $ 86,344 Products/services transferred over time 282,319 128,138 115,368 19,843 51,736 597,404 Total $ 282,319 $ 128,138 $ 155,711 $ 45,374 $ 72,206 $ 683,748 Three Months Ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 10,566 $ 11,278 $ — $ 21,844 $ 71,967 $ 93,811 Supplies — — 36,271 19,186 — 55,457 — 55,457 Software — — — — 91,703 91,703 — 91,703 Rentals — — — — — — 19,454 19,454 Financing — — — — — — 97,129 97,129 Support services — — 113,977 24,621 — 138,598 — 138,598 Business services 239,100 122,730 5,664 1,594 — 369,088 — 369,088 Subtotal 239,100 122,730 166,478 56,679 91,703 676,690 $ 188,550 $ 865,240 Revenue from leasing transactions and financing Equipment sales — — 55,957 16,010 — 71,967 Rentals — — 14,339 5,115 — 19,454 Financing — — 82,127 15,002 — 97,129 Total revenue $ 239,100 $ 122,730 $ 318,901 $ 92,806 $ 91,703 $ 865,240 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 46,837 $ 30,464 $ 40,020 $ 117,321 Products/services transferred over time 239,100 122,730 119,641 26,215 51,683 559,369 Total $ 239,100 $ 122,730 $ 166,478 $ 56,679 $ 91,703 $ 676,690 Six Months Ended June 30, 2019 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 17,097 $ 23,580 $ — $ 40,677 $ 134,661 $ 175,338 Supplies — — 67,563 29,880 — 97,443 — 97,443 Software — — — — 145,524 145,524 — 145,524 Rentals — — — — — — 40,602 40,602 Financing — — — — — — 189,462 189,462 Support services — — 216,562 39,742 — 256,304 — 256,304 Business services 548,573 262,985 11,035 1,915 — 824,508 — 824,508 Subtotal 548,573 262,985 312,257 95,117 145,524 1,364,456 $ 364,725 $ 1,729,181 Revenue from leasing transactions and financing Equipment sales — — 112,086 22,575 — 134,661 Rentals — — 30,819 9,783 — 40,602 Financing — — 163,729 25,733 — 189,462 Total revenue $ 548,573 $ 262,985 $ 618,891 $ 153,208 $ 145,524 $ 1,729,181 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 84,660 $ 53,460 $ 41,442 $ 179,562 Products/services transferred over time 548,573 262,985 227,597 41,657 104,082 1,184,894 Total $ 548,573 $ 262,985 $ 312,257 $ 95,117 $ 145,524 $ 1,364,456 Six Months Ended June 30, 2018 Global Ecommerce Presort Services North America Mailing International Mailing Software Solutions Revenue from products and services Revenue from leasing transactions and financing Total consolidated revenue Major products/service lines Equipment sales $ — $ — $ 20,981 $ 23,074 $ — $ 44,055 $ 156,464 $ 200,519 Supplies — — 75,223 40,227 — 115,450 — 115,450 Software — — — — 167,997 167,997 — 167,997 Rentals — — — — — — 44,419 44,419 Financing — — — — — — 197,478 197,478 Support services — — 227,690 51,558 — 279,248 — 279,248 Business services 485,690 257,188 10,553 3,281 — 756,712 — 756,712 Subtotal 485,690 257,188 334,447 118,140 167,997 1,363,462 $ 398,361 $ 1,761,823 Revenue from leasing transactions and financing Equipment sales — — 124,429 32,035 — 156,464 Rentals — — 33,851 10,568 — 44,419 Financing — — 166,985 30,493 — 197,478 Total revenue $ 485,690 $ 257,188 $ 659,712 $ 191,236 $ 167,997 $ 1,761,823 Timing of revenue recognition from products and services Products/services transferred at a point in time $ — $ — $ 96,204 $ 63,301 $ 65,021 $ 224,526 Products/services transferred over time 485,690 257,188 238,243 54,839 102,976 1,138,936 Total $ 485,690 $ 257,188 $ 334,447 $ 118,140 $ 167,997 $ 1,363,462 |
Contract Assets and Advance Billings | Contract Assets and Advance Billings from Contracts with Customers Balance sheet location June 30, 2019 December 31, 2018 Increase (Decrease) Contracts assets, current Other current assets and prepayments $ 17,050 $ 16,115 $ 935 Contracts assets, noncurrent Other assets $ 10,050 $ 13,092 $ (3,042 ) Advance billings, current Advance billings $ 200,224 $ 215,790 $ (15,566 ) Advance billings, noncurrent Other noncurrent liabilities $ 12,832 $ 12,778 $ 54 |
Future Performance Obligations | The transaction prices allocated to future performance obligations will be recognized as follows: Remainder of 2019 2020 2021-2024 Total North America Mailing (1) $ 133,984 $ 231,394 $ 338,435 $ 703,813 International Mailing (1) 15,799 21,938 27,583 65,320 Software Solutions (2) 34,805 57,111 33,295 125,211 Total $ 184,588 $ 310,443 $ 399,313 $ 894,344 (1) Revenue streams bundled with our leasing contracts, primarily maintenance, meter services and other subscription 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, 2019 | |
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, 2019 2018 2019 2018 Global Ecommerce $ 282,319 $ 239,100 $ 548,573 $ 485,690 Presort Services 128,138 122,730 262,985 257,188 Commerce Services 410,457 361,830 811,558 742,878 North America Mailing 303,417 318,901 618,891 659,712 International Mailing 74,699 92,806 153,208 191,236 SMB Solutions 378,116 411,707 772,099 850,948 Software Solutions 72,206 91,703 145,524 167,997 Total revenue $ 860,779 $ 865,240 $ 1,729,181 $ 1,761,823 EBIT Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Global Ecommerce $ (15,576 ) $ (5,993 ) $ (30,176 ) $ (13,704 ) Presort Services 15,462 12,565 30,528 39,591 Commerce Services (114 ) 6,572 352 25,887 North America Mailing 112,804 120,139 223,417 248,707 International Mailing 11,934 13,091 23,724 29,113 SMB Solutions 124,738 133,230 247,141 277,820 Software Solutions 2,002 18,433 3,694 20,925 Total segment EBIT 126,626 158,235 251,187 324,632 Reconciliation of Segment EBIT to net income: Unallocated corporate expenses (43,785 ) (46,477 ) (99,474 ) (97,559 ) Restructuring charges and asset impairments, net (7,279 ) (11,503 ) (10,877 ) (12,407 ) Interest, net (39,062 ) (41,969 ) (78,028 ) (85,047 ) Other income (expense) 27 — (17,683 ) — Transaction costs (2,150 ) — (3,876 ) (1,055 ) Provision for income taxes (4,099 ) (7,899 ) (12,400 ) (26,694 ) Income from continuing operations 30,278 50,387 28,849 101,870 (Loss) income from discontinued operations, net of tax (6,581 ) 1,208 (7,811 ) 9,695 Net income $ 23,697 $ 51,595 $ 21,038 $ 111,565 |
Reconciliation of EBIT from Segments to Consolidated | EBIT Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Global Ecommerce $ (15,576 ) $ (5,993 ) $ (30,176 ) $ (13,704 ) Presort Services 15,462 12,565 30,528 39,591 Commerce Services (114 ) 6,572 352 25,887 North America Mailing 112,804 120,139 223,417 248,707 International Mailing 11,934 13,091 23,724 29,113 SMB Solutions 124,738 133,230 247,141 277,820 Software Solutions 2,002 18,433 3,694 20,925 Total segment EBIT 126,626 158,235 251,187 324,632 Reconciliation of Segment EBIT to net income: Unallocated corporate expenses (43,785 ) (46,477 ) (99,474 ) (97,559 ) Restructuring charges and asset impairments, net (7,279 ) (11,503 ) (10,877 ) (12,407 ) Interest, net (39,062 ) (41,969 ) (78,028 ) (85,047 ) Other income (expense) 27 — (17,683 ) — Transaction costs (2,150 ) — (3,876 ) (1,055 ) Provision for income taxes (4,099 ) (7,899 ) (12,400 ) (26,694 ) Income from continuing operations 30,278 50,387 28,849 101,870 (Loss) income from discontinued operations, net of tax (6,581 ) 1,208 (7,811 ) 9,695 Net income $ 23,697 $ 51,595 $ 21,038 $ 111,565 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial information and Assets and Liabilities | Selected financial information is as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue $ — $ 89,201 $ — $ 191,435 Earnings (loss) from discontinued operations $ — $ 8,278 $ (663 ) $ 21,620 Loss on sale (8,589 ) (7,238 ) (9,257 ) (8,777 ) (Loss) income from discontinued operations before taxes (8,589 ) 1,040 (9,920 ) 12,843 Tax (benefit) provision (2,008 ) (168 ) (2,109 ) 3,148 (Loss) income from discontinued operations, net of tax $ (6,581 ) $ 1,208 $ (7,811 ) $ 9,695 |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 2019 2018 Numerator: Income from continuing operations $ 30,278 $ 50,387 $ 28,849 $ 101,870 (Loss) income from discontinued operations, net of tax (6,581 ) 1,208 (7,811 ) 9,695 Net income (numerator for diluted EPS) 23,697 51,595 21,038 111,565 Less: Preference stock dividend — 8 8 16 Income attributable to common stockholders (numerator for basic EPS) $ 23,697 $ 51,587 $ 21,030 $ 111,549 Denominator: Weighted-average shares used in basic EPS 177,192 187,180 181,446 187,004 Dilutive effect of common stock equivalents 1,089 934 1,192 1,053 Weighted-average shares used in diluted EPS 178,281 188,114 182,638 188,057 Basic earnings (loss) per share (1) : Continuing operations $ 0.17 $ 0.27 $ 0.16 $ 0.54 Discontinued operations (0.04 ) 0.01 (0.04 ) 0.05 Net income $ 0.13 $ 0.28 $ 0.12 $ 0.60 Diluted earnings (loss) per share (1) : Continuing operations $ 0.17 $ 0.27 $ 0.16 $ 0.54 Discontinued operations (0.04 ) 0.01 (0.04 ) 0.05 Net income $ 0.13 $ 0.27 $ 0.12 $ 0.59 Anti-dilutive options excluded from diluted earnings per share: 16,297 12,453 16,077 11,959 (1) The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Components | Inventories at June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, Raw materials $ 13,740 $ 8,231 Supplies and service parts 23,701 21,841 Finished products 40,389 36,690 Inventory at FIFO cost 77,830 66,762 Excess of FIFO cost over LIFO cost (4,483 ) (4,483 ) Total inventory, net $ 73,347 $ 62,279 |
Finance Assets and Lessor Ope_2
Finance Assets and Lessor Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Financing Receivables | Finance receivables at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 North America International Total North America International Total Sales-type lease receivables Gross finance receivables $ 1,081,063 $ 197,145 $ 1,278,208 $ 1,110,896 $ 242,036 $ 1,352,932 Unguaranteed residual values 45,279 11,676 56,955 52,637 12,772 65,409 Unearned income (349,996 ) (47,367 ) (397,363 ) (383,453 ) (55,113 ) (438,566 ) Allowance for credit losses (11,322 ) (2,262 ) (13,584 ) (10,252 ) (2,356 ) (12,608 ) Net investment in sales-type lease receivables 765,024 159,192 924,216 769,828 197,339 967,167 Loan receivables Loan receivables 289,694 30,126 319,820 300,319 29,270 329,589 Allowance for credit losses (6,374 ) (759 ) (7,133 ) (6,777 ) (837 ) (7,614 ) Net investment in loan receivables 283,320 29,367 312,687 293,542 28,433 321,975 Net investment in finance receivables $ 1,048,344 $ 188,559 $ 1,236,903 $ 1,063,370 $ 225,772 $ 1,289,142 |
Sales-type Lease Maturity | Loans receivable are due within one year. Maturities of gross sales-type lease finance receivables at June 30, 2019 were as follows: Sales-type Lease Receivables North America International Total Remaining for year ending December 31, 2019 $ 381,156 $ 39,908 $ 421,064 Year ending December 31, 2020 298,935 56,712 355,647 Year ending December 31, 2021 209,673 44,544 254,217 Year ending December 31, 2022 125,705 29,828 155,533 Year ending December 31, 2023 57,256 16,823 74,079 Thereafter 8,338 9,330 17,668 Total $ 1,081,063 $ 197,145 $ 1,278,208 |
Allowance for Credit Losses on Financing Receivables | Activity in the allowance for credit losses for the six months ended June 30, 2019 and 2018 was as follows: Sales-type Lease Receivables Loan Receivables North America International North America International Total Balance at January 1, 2019 $ 10,252 $ 2,356 $ 6,777 $ 837 $ 20,222 Amounts charged to expense 3,660 455 2,329 315 6,759 Write-offs and other (2,590 ) (549 ) (2,732 ) (393 ) (6,264 ) Balance at June 30, 2019 $ 11,322 $ 2,262 $ 6,374 $ 759 $ 20,717 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 3,506 250 10,247 Write-offs and other (2,538 ) (933 ) (3,735 ) (330 ) (7,536 ) Balance at June 30, 2018 $ 11,129 $ 2,406 $ 6,869 $ 940 $ 21,344 |
Past Due Financing Receivables | The aging of gross finance receivables at June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 1,051,352 $ 192,135 $ 283,809 $ 29,866 $ 1,557,162 > 90 days 29,711 5,010 5,885 260 40,866 Total $ 1,081,063 $ 197,145 $ 289,694 $ 30,126 $ 1,598,028 Past due amounts > 90 days Still accruing interest $ 6,467 $ 1,410 $ 1,932 $ 116 $ 9,925 Not accruing interest 23,244 3,600 3,953 144 30,941 Total $ 29,711 $ 5,010 $ 5,885 $ 260 $ 40,866 December 31, 2018 Sales-type Lease Receivables Loan Receivables North America International North America International Total 1 - 90 days $ 1,069,288 $ 238,114 $ 294,126 $ 29,079 $ 1,630,607 > 90 days 41,608 3,922 6,193 191 51,914 Total $ 1,110,896 $ 242,036 $ 300,319 $ 29,270 $ 1,682,521 Past due amounts > 90 days Still accruing interest $ 7,917 $ 1,111 $ 1,769 $ 72 $ 10,869 Not accruing interest 33,691 2,811 4,424 119 41,045 Total $ 41,608 $ 3,922 $ 6,193 $ 191 $ 51,914 |
Financing Receivable Credit Quality Indicators | June 30, December 31, Sales-type lease receivables Low $ 893,068 $ 922,414 Medium 131,312 131,650 High 20,930 22,110 Not Scored 35,753 34,722 Total $ 1,081,063 $ 1,110,896 Loan receivables Low $ 229,888 $ 238,620 Medium 42,731 43,952 High 5,703 5,947 Not Scored 11,372 11,800 Total $ 289,694 $ 300,319 |
Sales-type Lease, Lease Income | Lease income from sales-type leases for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Profit recognized at commencement (1) $ 34,320 $ 39,642 $ 70,678 $ 86,929 Interest income 58,045 60,855 117,523 122,687 Total lease income from sales-type leases $ 92,365 $ 100,497 $ 188,201 $ 209,616 (1) Lease contracts do not include variable lease payments. |
Lessor, Payments to be Received | We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows: Remaining for year ending December 31, 2019 $ 18,383 Year ending December 31, 2020 27,684 Year ending December 31, 2021 12,394 Year ending December 31, 2022 6,348 Year ending December 31, 2023 2,886 Thereafter 182 Total $ 67,877 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 484,597 $ (294,244 ) $ 190,353 $ 480,837 $ (281,190 ) $ 199,647 Software & technology 164,849 (147,130 ) 17,719 165,088 (143,877 ) 21,211 Trademarks & other 40,105 (35,581 ) 4,524 40,170 (33,891 ) 6,279 Total intangible assets $ 689,551 $ (476,955 ) $ 212,596 $ 686,095 $ (458,958 ) $ 227,137 |
Amortization Expense In Future Periods | Future amortization expense as of June 30, 2019 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. Remaining for year ending December 31, 2019 $ 19,898 Year ending December 31, 2020 35,551 Year ending December 31, 2021 31,033 Year ending December 31, 2022 29,801 Year ending December 31, 2023 26,726 Thereafter 69,587 Total $ 212,596 |
Schedule of Goodwill | Changes in the carrying value of goodwill, by reporting segment, for the six months ended June 30, 2019 are shown in the table below. December 31, 2018 Divestiture Currency impact June 30, Global Ecommerce $ 609,431 $ — $ — $ 609,431 Presort Services 207,465 — — 207,465 Commerce Services 816,896 — — 816,896 North America Mailing 368,248 — 326 368,574 International Mailing 147,207 (10,490 ) (1,537 ) 135,180 SMB Solutions 515,455 (10,490 ) (1,211 ) 503,754 Software Solutions 434,160 — (200 ) 433,960 Total goodwill $ 1,766,511 $ (10,490 ) $ (1,411 ) $ 1,754,610 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 . June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 237,848 $ 321,863 $ — $ 559,711 Equity securities — 22,372 — 22,372 Commingled fixed income securities 1,632 21,212 — 22,844 Government and related securities 78,842 7,550 — 86,392 Corporate debt securities — 50,774 — 50,774 Mortgage-backed / asset-backed securities — 85,415 — 85,415 Derivatives Foreign exchange contracts — 345 — 345 Total assets $ 318,322 $ 509,531 $ — $ 827,853 Liabilities: Derivatives Foreign exchange contracts $ — $ (297 ) $ — $ (297 ) Total liabilities $ — $ (297 ) $ — $ (297 ) December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Investment securities Money market funds / commercial paper $ 220,756 $ 391,891 $ — $ 612,647 Equity securities — 19,133 — 19,133 Commingled fixed income securities 1,570 20,141 — 21,711 Government and related securities 98,790 9,787 — 108,577 Corporate debt securities — 56,938 — 56,938 Mortgage-backed / asset-backed securities — 98,334 — 98,334 Derivatives Foreign exchange contracts — 2,031 — 2,031 Total assets $ 321,116 $ 598,255 $ — $ 919,371 Liabilities: Derivatives Foreign exchange contracts $ — $ (735 ) $ — $ (735 ) Total liabilities $ — $ (735 ) $ — $ (735 ) |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale securities at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 85,292 $ 1,063 $ (47 ) $ 86,308 Corporate debt securities 49,507 1,320 (53 ) 50,774 Commingled fixed income securities 1,656 — (24 ) 1,632 Mortgage-backed / asset-backed securities 85,058 905 (548 ) 85,415 Total $ 221,513 $ 3,288 $ (672 ) $ 224,129 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Government and related securities $ 109,776 $ 47 $ (1,336 ) $ 108,487 Corporate debt securities 58,714 4 (1,780 ) 56,938 Commingled fixed income securities 1,637 — (67 ) 1,570 Mortgage-backed / asset-backed securities 100,186 167 (2,019 ) 98,334 Total $ 270,313 $ 218 $ (5,202 ) $ 265,329 |
Schedule of Unrealized Holding Losses | The aggregate unrealized holding losses of investment securities in a loss position at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Fair Value Gross unrealized losses Fair Value Gross unrealized losses Less than 12 continuous months $ 502 $ 2 $ 48,318 $ 847 Greater than 12 continuous months 56,970 670 177,331 4,355 Total $ 57,472 $ 672 $ 225,649 $ 5,202 |
Available-for-sale Securities | Scheduled maturities of available-for-sale securities at June 30, 2019 were as follows: Amortized cost Estimated fair value Within 1 year $ 47,535 $ 47,589 After 1 year through 5 years 68,901 69,407 After 5 years through 10 years 34,951 36,121 After 10 years 70,126 71,012 Total $ 221,513 $ 224,129 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments at June 30, 2019 and December 31, 2018 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 $ 51 $ 61 Accounts payable and accrued liabilities (190 ) (104 ) Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets and prepayments 294 1,970 Accounts payable and accrued liabilities (107 ) (631 ) Total derivative assets $ 345 $ 2,031 Total derivative liabilities (297 ) (735 ) Total net derivative asset $ 48 $ 1,296 |
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, 2019 and 2018 : 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 2019 2018 2019 2018 Foreign exchange contracts $ (320 ) $ 119 Revenue $ (36 ) $ 79 Cost of sales 29 (1 ) Interest rate swap — (771 ) Interest Expense — — $ (320 ) $ (652 ) $ (7 ) $ 78 Six 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 2019 2018 2019 2018 Foreign exchange contracts $ 25 $ 154 Revenue $ 75 $ 76 Cost of sales 45 (85 ) Interest rate swap — (952 ) Interest Expense — — $ 25 $ (798 ) $ 120 $ (9 ) |
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, 2019 and 2018 . All outstanding contracts at June 30, 2019 mature within 12 months. Three Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2019 2018 Foreign exchange contracts Selling, general and administrative expense $ (65 ) $ (14,828 ) Six Months Ended June 30, Derivative Gain (Loss) Recognized in Earnings Derivatives Instrument Location of Derivative Gain (Loss) 2019 2018 Foreign exchange contracts Selling, general and administrative expense $ 5,205 $ (18,396 ) |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of our debt at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying value $ 3,244,173 $ 3,265,608 Fair value $ 3,101,477 $ 3,003,678 |
Restructuring Charges and Ass_2
Restructuring Charges and Asset Impairments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 was as follows: Severance and benefits costs Other exit costs Total Balance at January 1, 2019 $ 13,641 $ 1,808 $ 15,449 Expenses, net 8,379 707 9,086 Cash payments (12,064 ) (2,219 ) (14,283 ) Balance at June 30, 2019 $ 9,956 $ 296 $ 10,252 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 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt at June 30, 2019 and December 31, 2018 consisted of the following: Interest rate June 30, 2019 December 31, 2018 Notes due September 2020 3.875% $ 300,000 $ 300,000 Notes due October 2021 3.875% 600,000 600,000 Notes due May 2022 4.625% 400,000 400,000 Notes due April 2023 4.95% 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 605,000 630,000 Other debt 5,210 5,297 Principal amount 3,271,051 3,296,138 Less: unamortized costs, net 26,878 30,530 Total debt 3,244,173 3,265,608 Less: current portion long-term debt 214,927 199,535 Long-term debt $ 3,029,246 $ 3,066,073 |
Pensions and Other Benefit Pr_2
Pensions and Other Benefit Programs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The components of net periodic benefit (income) cost 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, 2019 2018 2019 2018 2019 2018 Service cost $ 21 $ 9 $ 388 $ 575 $ 228 $ 405 Interest cost 15,708 15,108 4,308 4,591 1,637 1,607 Expected return on plan assets (23,184 ) (25,119 ) (8,505 ) (9,118 ) — — Amortization of transition credit — — (1 ) (2 ) — — Amortization of prior service (credit) cost (15 ) (15 ) 60 (18 ) 81 88 Amortization of net actuarial loss 6,037 7,628 1,572 1,870 503 881 Settlement (1) 801 — 397 — — — Net periodic benefit (income) cost $ (632 ) $ (2,389 ) $ (1,781 ) $ (2,102 ) $ 2,449 $ 2,981 Contributions to benefit plans $ 2,423 $ 1,906 $ 878 $ 769 $ 4,457 $ 4,316 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, 2019 2018 2019 2018 2019 2018 Service cost $ 42 $ 46 $ 772 $ 1,164 $ 483 $ 811 Interest cost 31,586 30,724 8,796 9,287 3,291 3,210 Expected return on plan assets (46,363 ) (50,543 ) (17,269 ) (18,304 ) — — Amortization of transition credit — — (3 ) (3 ) — — Amortization of prior service (credit) cost (30 ) (30 ) 123 (37 ) 161 176 Amortization of net actuarial loss 13,073 15,704 3,184 3,783 1,014 1,815 Settlement (1) 801 — 397 — — — Net periodic benefit (income) cost $ (891 ) $ (4,099 ) $ (4,000 ) $ (4,110 ) $ 4,949 $ 6,012 Contributions to benefit plans $ 4,051 $ 3,194 $ 9,088 $ 9,979 $ 9,213 $ 9,111 |
Leased Assets and Liabilities (
Leased Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of operating and finance lease assets and liabilities | Leases Balance Sheet Location June 30, 2019 December 31, 2018 Assets Operating Operating lease assets $ 180,983 $ 156,788 Finance Property, plant and equipment, net 11,501 10,683 Total leased assets $ 192,484 $ 167,471 Liabilities Operating Current operating lease liabilities $ 34,612 $ 37,208 Noncurrent operating lease liabilities 154,648 127,237 Finance Accounts payable and accrued liabilities 2,809 2,708 Other noncurrent liabilities 7,739 7,054 Total lease liabilities $ 199,808 $ 174,207 |
Schedule of components of lease expense | Three Months Ended June 30, Six Months Ended June 30, Lease Cost 2019 2018 2019 2018 Operating lease expense $ 11,695 $ 11,145 $ 23,786 $ 23,422 Finance lease expense Amortization of leased assets 811 640 1,691 1,242 Interest on lease liabilities 176 125 348 243 Variable lease expense 7,988 7,952 13,852 13,094 Sublease income (679 ) (203 ) (1,345 ) (452 ) Total expense $ 19,991 $ 19,659 $ 38,332 $ 37,549 |
Schedule of future payments of finance lease liabilities | Future Lease Payments Operating Leases Finance Leases Total Remaining for year ending December 31, 2019 $ 22,257 $ 1,803 $ 24,060 Year ending December 31, 2020 42,878 3,105 45,983 Year ending December 31, 2021 35,937 2,712 38,649 Year ending December 31, 2022 27,637 2,162 29,799 Year ending December 31, 2023 21,032 1,518 22,550 Thereafter 89,177 813 89,990 Total 238,918 12,113 251,031 Less: present value discount 49,658 1,565 51,223 Lease liability $ 189,260 $ 10,548 $ 199,808 |
Schedule of future payments of operating lease liabilities | Future Lease Payments Operating Leases Finance Leases Total Remaining for year ending December 31, 2019 $ 22,257 $ 1,803 $ 24,060 Year ending December 31, 2020 42,878 3,105 45,983 Year ending December 31, 2021 35,937 2,712 38,649 Year ending December 31, 2022 27,637 2,162 29,799 Year ending December 31, 2023 21,032 1,518 22,550 Thereafter 89,177 813 89,990 Total 238,918 12,113 251,031 Less: present value discount 49,658 1,565 51,223 Lease liability $ 189,260 $ 10,548 $ 199,808 |
Schedule of weighted-average remaining lease terms and weighted-average discount rates | Lease Term and Discount Rate June 30, 2019 December 31, 2018 Weighted-average remaining lease term Operating leases 7.5 years 5.9 years Finance leases 4.1 years 3.8 years Weighted-average discount rate Operating leases 5.8% 4.7% Finance leases 6.6% 6.2% |
Schedule of supplemental cash flow information | Three Months Ended June 30, Six Months Ended June 30, Cash Flow Information 2019 2018 2019 2018 Operating cash outflows - operating leases $ 11,073 $ 10,987 $ 22,870 $ 22,738 Operating cash outflows - finance leases $ 176 $ 125 $ 348 $ 243 Financing cash outflows - finance leases $ 775 $ 592 $ 1,520 $ 1,156 Leased assets obtained in exchange for new lease obligations Operating leases $ 40,907 $ 3,998 $ 49,060 $ 6,994 Finance leases $ 430 $ 88 $ 2,103 $ 1,160 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders’ equity for the three months ended June 30, 2019 and 2018 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 April 1, 2019 $ 1 $ 388 $ 323,338 $ 109,166 $ 5,267,615 $ (918,072 ) $ (4,696,080 ) $ 86,356 Net income — — — — 23,697 — — 23,697 Other comprehensive income — — — — — 10,394 — 10,394 Dividends paid ($0.05 per common share) — — — — (8,938 ) — — (8,938 ) Issuance of common stock — — — (3,807 ) — — 4,024 217 Conversion to common stock — (122 ) — (2,389 ) — — 2,511 — Redemption of preferred/preference stock (1 ) (266 ) — (10 ) — — — (277 ) Stock-based compensation expense — — — 2,381 — — — 2,381 Repurchase of common stock — — — — — — (60,858 ) (60,858 ) Balance at June 30, 2019 $ — $ — $ 323,338 $ 105,341 $ 5,282,374 $ (907,678 ) $ (4,750,403 ) $ 52,972 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at April 1, 2018 $ 1 $ 422 $ 323,338 $ 119,647 $ 5,087,090 $ (775,190 ) $ (4,692,394 ) $ 62,914 Net income — — — — 51,595 — — 51,595 Other comprehensive loss — — — — — (36,614 ) — (36,614 ) Dividends paid ($0.1875 per common share) — — — — (35,097 ) — — (35,097 ) Issuance of common stock — — — (2,660 ) — — 2,943 283 Conversion to common stock — (7 ) — (135 ) — — 142 — Stock-based compensation expense — — — 5,880 — — — 5,880 Balance at June 30, 2018 $ 1 $ 415 $ 323,338 $ 122,732 $ 5,103,588 $ (811,804 ) $ (4,689,309 ) $ 48,961 Changes in stockholders’ equity for the six months ended June 30, 2019 and 2018 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 January 1, 2019 $ 1 $ 396 $ 323,338 $ 121,475 $ 5,279,682 $ (948,961 ) $ (4,674,089 ) $ 101,842 Net income — — — — 21,038 — — 21,038 Other comprehensive income — — — — — 41,283 — 41,283 Dividends paid ($0.10 per common share) — — — — (18,346 ) — — (18,346 ) Issuance of common stock — — — (22,731 ) — — 20,998 (1,733 ) Conversion to common stock — (130 ) — (2,558 ) — — 2,688 — Redemption of preferred/preference stock (1 ) (266 ) — (10 ) — — — (277 ) Stock-based compensation expense — — — 9,165 — — — 9,165 Repurchase of common stock — — — — — — (100,000 ) (100,000 ) Balance at June 30, 2019 $ — $ — $ 323,338 $ 105,341 $ 5,282,374 $ (907,678 ) $ (4,750,403 ) $ 52,972 Preferred stock Preference stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total equity Balance at January 1, 2018 $ 1 $ 441 $ 323,338 $ 138,367 $ 5,074,343 $ (794,940 ) $ (4,710,997 ) $ 30,553 Cumulative effect of accounting change — — — — (12,207 ) — — (12,207 ) Net income — — — — 111,565 — — 111,565 Other comprehensive loss — — — — — (16,864 ) — (16,864 ) Dividends paid ($0.375 per common share) — — — — (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 $ 5,103,588 $ (811,804 ) $ (4,689,309 ) $ 48,961 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three and six months ended June 30, 2019 and 2018 were as follows: Amount Reclassified from AOCI (1) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Losses) gains on cash flow hedges Revenue $ (36 ) $ 79 $ 75 $ 76 Cost of sales 29 (1 ) 45 (85 ) Interest expense, net — (507 ) — (1,014 ) Total before tax (7 ) (429 ) 120 (1,023 ) Income tax benefit (provision) 1 110 (31 ) 261 Net of tax $ (6 ) $ (319 ) $ 89 $ (762 ) (Losses) gains on available for sale securities Interest expense, net $ (81 ) $ 214 $ (104 ) $ 190 Income tax benefit (provision) 21 (54 ) 27 (48 ) Net of tax $ (60 ) $ 160 $ (77 ) $ 142 Pension and Postretirement Benefit Plans (2) Transition credit $ 1 $ 2 $ 3 $ 3 Prior service costs (126 ) (55 ) (254 ) (109 ) Actuarial losses (8,112 ) (10,379 ) (17,271 ) (21,302 ) Settlements (1,198 ) — (1,198 ) — Total before tax (9,435 ) (10,432 ) (18,720 ) (21,408 ) Income tax benefit 2,124 2,564 4,773 5,368 Net of tax $ (7,311 ) $ (7,868 ) $ (13,947 ) $ (16,040 ) (1) Amounts in parentheses indicate reductions to income and increases to other comprehensive income. (2) Reclassified from AOCI into other components of net pension and postretirement cost (see Note 12 for additional details). |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI for the six months ended June 30, 2019 and 2018 were as follows: Cash flow hedges Available for sale securities Pension and postretirement benefit plans Foreign currency adjustments Total Balance at January 1, 2019 $ 191 $ (3,061 ) $ (846,461 ) $ (99,630 ) $ (948,961 ) Other comprehensive income before reclassifications (1) 18 5,952 — 21,378 27,348 Reclassifications into earnings (1), (2) (89 ) 77 13,947 — 13,935 Net other comprehensive income (71 ) 6,029 13,947 21,378 41,283 Balance at June 30, 2019 $ 120 $ 2,968 $ (832,514 ) $ (78,252 ) $ (907,678 ) 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 ) $ (47,331 ) $ (794,940 ) Other comprehensive income (loss) before reclassifications (1) (511 ) (5,154 ) — (27,859 ) (33,524 ) Reclassifications into earnings (1), (2) 762 (142 ) 16,040 — 16,660 Net other comprehensive income (loss) 251 (5,296 ) 16,040 (27,859 ) (16,864 ) Balance at June 30, 2018 $ (155 ) $ (3,699 ) $ (732,760 ) $ (75,190 ) $ (811,804 ) (1) Amounts are net of tax. Amounts in parentheses indicate debits to AOCI. (2) See table above for additional details of these reclassifications. |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2019USD ($)market | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease to research and development | $ (22,630) | $ (23,574) | $ (44,404) | $ (48,069) | |||
Increase to selling, general and administrative | 278,545 | 289,427 | 579,527 | 592,237 | |||
Decrease in short-term finance receivables and advance billings | $ 6,000 | ||||||
Other receivables | 101,000 | 101,000 | 76,000 | ||||
Retained earnings | (5,282,374) | (5,282,374) | $ (5,279,682) | ||||
ASU 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 137,000 | ||||||
Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease to research and development | 7,000 | 13,000 | |||||
Increase to selling, general and administrative | 7,000 | 13,000 | |||||
Business services | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | 337,918 | 290,567 | 664,964 | 584,946 | |||
Business services | Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | (3,000) | (5,000) | |||||
Equipment sales | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | 58,570 | 58,948 | 122,235 | 121,417 | |||
Equipment sales | Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | 3,000 | 5,000 | |||||
Equipment sales | Income Statement Adjustment | Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | (1,000) | (3,000) | |||||
Rentals | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | 8,418 | 8,464 | 18,133 | 21,212 | |||
Rentals | Income Statement Adjustment | Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | (1,000) | (2,000) | |||||
Support services | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | $ 40,448 | 42,306 | $ 82,227 | 88,371 | |||
Support services | Income Statement Adjustment | Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase (decrease) to cost of products and sales | $ 2,000 | $ 5,000 | |||||
Disposed of by Sale | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of smaller markets sold | market | 6 | ||||||
Loss on sale | $ 18,000 |
Revenue (Disaggregates of Reven
Revenue (Disaggregates of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | $ 860,779 | $ 865,240 | $ 1,729,181 | $ 1,761,823 |
Total consolidated revenue | 860,779 | 865,240 | 1,729,181 | 1,761,823 |
ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 683,748 | 676,690 | 1,364,456 | 1,363,462 |
Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 86,344 | 117,321 | 179,562 | 224,526 |
Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 597,404 | 559,369 | 1,184,894 | 1,138,936 |
Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 683,748 | 676,690 | 1,364,456 | 1,363,462 |
Revenue from leasing transactions and financing | 177,031 | 188,550 | 364,725 | 398,361 |
Total consolidated revenue | 860,779 | 865,240 | 1,729,181 | 1,761,823 |
Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 19,384 | 21,844 | 40,677 | 44,055 |
Revenue from leasing transactions and financing | 66,167 | 71,967 | 134,661 | 156,464 |
Total consolidated revenue | 85,551 | 93,811 | 175,338 | 200,519 |
Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 46,490 | 55,457 | 97,443 | 115,450 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 46,490 | 55,457 | 97,443 | 115,450 |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 72,206 | 91,703 | 145,524 | 167,997 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 72,206 | 91,703 | 145,524 | 167,997 |
Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 18,445 | 19,454 | 40,602 | 44,419 |
Total consolidated revenue | 18,445 | 19,454 | 40,602 | 44,419 |
Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 92,419 | 97,129 | 189,462 | 197,478 |
Total consolidated revenue | 92,419 | 97,129 | 189,462 | 197,478 |
Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 127,683 | 138,598 | 256,304 | 279,248 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 127,683 | 138,598 | 256,304 | 279,248 |
Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 417,985 | 369,088 | 824,508 | 756,712 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Total consolidated revenue | 417,985 | 369,088 | 824,508 | 756,712 |
Software Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 72,206 | 91,703 | 145,524 | 167,997 |
Revenue from leasing transactions and financing | 72,206 | 91,703 | 145,524 | 167,997 |
Software Solutions | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 72,206 | 91,703 | 145,524 | 167,997 |
Software Solutions | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 20,470 | 40,020 | 41,442 | 65,021 |
Software Solutions | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 51,736 | 51,683 | 104,082 | 102,976 |
Software Solutions | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 72,206 | 91,703 | 145,524 | 167,997 |
Software Solutions | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Software Solutions | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Software Solutions | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 72,206 | 91,703 | 145,524 | 167,997 |
Software Solutions | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Software Solutions | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Software Solutions | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Software Solutions | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 282,319 | 239,100 | 548,573 | 485,690 |
Global Ecommerce | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 282,319 | 239,100 | 548,573 | 485,690 |
Global Ecommerce | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 282,319 | 239,100 | 548,573 | 485,690 |
Global Ecommerce | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 282,319 | 239,100 | 548,573 | 485,690 |
Global Ecommerce | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Global Ecommerce | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Global Ecommerce | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Global Ecommerce | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Global Ecommerce | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 282,319 | 239,100 | 548,573 | 485,690 |
Presort Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 128,138 | 122,730 | 262,985 | 257,188 |
Presort Services | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 128,138 | 122,730 | 262,985 | 257,188 |
Presort Services | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 128,138 | 122,730 | 262,985 | 257,188 |
Presort Services | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 128,138 | 122,730 | 262,985 | 257,188 |
Presort Services | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Presort Services | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 | 0 | 0 |
Presort Services | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | (22) | 0 | 0 | 0 |
Presort Services | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 128,160 | 122,730 | 262,985 | 257,188 |
North America Mailing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 303,417 | 318,901 | 618,891 | 659,712 |
North America Mailing | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 155,711 | 166,478 | 312,257 | 334,447 |
North America Mailing | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 40,343 | 46,837 | 84,660 | 96,204 |
North America Mailing | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 115,368 | 119,641 | 227,597 | 238,243 |
North America Mailing | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 155,711 | 166,478 | 312,257 | 334,447 |
North America Mailing | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 7,882 | 10,566 | 17,097 | 20,981 |
Revenue from leasing transactions and financing | 54,191 | 55,957 | 112,086 | 124,429 |
North America Mailing | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 32,461 | 36,271 | 67,563 | 75,223 |
North America Mailing | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
North America Mailing | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 13,540 | 14,339 | 30,819 | 33,851 |
North America Mailing | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 79,975 | 82,127 | 163,729 | 166,985 |
North America Mailing | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 108,851 | 113,977 | 216,562 | 227,690 |
North America Mailing | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 6,517 | 5,664 | 11,035 | 10,553 |
International Mailing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from leasing transactions and financing | 74,699 | 92,806 | 153,208 | 191,236 |
International Mailing | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 45,374 | 56,679 | 95,117 | 118,140 |
International Mailing | Products/services transferred at a point in time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 25,531 | 30,464 | 53,460 | 63,301 |
International Mailing | Products/services transferred over time | ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 19,843 | 26,215 | 41,657 | 54,839 |
International Mailing | Sales And Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 45,374 | 56,679 | 95,117 | 118,140 |
International Mailing | Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 11,502 | 11,278 | 23,580 | 23,074 |
Revenue from leasing transactions and financing | 11,976 | 16,010 | 22,575 | 32,035 |
International Mailing | Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 14,029 | 19,186 | 29,880 | 40,227 |
International Mailing | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
International Mailing | Rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 4,905 | 5,115 | 9,783 | 10,568 |
International Mailing | Financing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 0 | 0 | 0 | 0 |
Revenue from leasing transactions and financing | 12,444 | 15,002 | 25,733 | 30,493 |
International Mailing | Support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 18,854 | 24,621 | 39,742 | 51,558 |
International Mailing | Business services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | $ 989 | $ 1,594 | $ 1,915 | $ 3,281 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Advanced billings, revenue recognized | $ 109 | |
Expected timing of satisfaction period | 12 months | 12 months |
Support services | Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Period of recognition | 1 year | |
Support services | Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Period of recognition | 5 years | |
Business services | Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Period of recognition | 1 year | |
Business services | Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Period of recognition | 5 years |
Revenue (Contract Assets and Ad
Revenue (Contract Assets and Advance Billings) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts assets, current | $ 17,050 | $ 16,115 |
Contracts assets, noncurrent | 10,050 | 13,092 |
Advance billings, current | 200,224 | 215,790 |
Advance billings, noncurrent | 12,832 | $ 12,778 |
Increase (Decrease) | ||
Contracts assets, current | 935 | |
Contracts assets, noncurrent | (3,042) | |
Advance billings, current | (15,566) | |
Advance billings, noncurrent | $ 54 |
Revenue (Future Performance Obl
Revenue (Future Performance Obligations) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
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]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 184,588 |
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 | 310,443 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | 399,313 |
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 | 894,344 |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 34,805 |
Expected timing of satisfaction period | 6 months |
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 | $ 57,111 |
Expected timing of satisfaction period | 1 year |
Software Solutions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 33,295 |
Expected timing of satisfaction period | 3 years |
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 | $ 125,211 |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 133,984 |
Expected timing of satisfaction period | 6 months |
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 | $ 231,394 |
Expected timing of satisfaction period | 1 year |
North America Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 338,435 |
Expected timing of satisfaction period | 3 years |
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 | $ 703,813 |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 15,799 |
Expected timing of satisfaction period | 6 months |
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 | $ 21,938 |
Expected timing of satisfaction period | 1 year |
International Mailing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future performance obligations | $ 27,583 |
Expected timing of satisfaction period | 3 years |
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 | $ 65,320 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment reporting information profit (loss) | ||||
Revenue | $ 860,779 | $ 865,240 | $ 1,729,181 | $ 1,761,823 |
Reconciliation of Segment EBIT to net income: | ||||
Restructuring charges and asset impairments, net | (7,279) | (11,503) | (10,877) | (12,407) |
Interest, net | (28,019) | (30,775) | (55,621) | (62,789) |
Other income (expense) | 27 | 0 | (17,683) | 0 |
Provision for income taxes | (4,099) | (7,899) | (12,400) | (26,694) |
Income from continuing operations | 30,278 | 50,387 | 28,849 | 101,870 |
(Loss) income from discontinued operations, net of tax | (6,581) | 1,208 | (7,811) | 9,695 |
Net income | 23,697 | 51,595 | 21,038 | 111,565 |
Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | 126,626 | 158,235 | 251,187 | 324,632 |
Segment Reconciling Items | ||||
Reconciliation of Segment EBIT to net income: | ||||
Unallocated corporate expenses | (43,785) | (46,477) | (99,474) | (97,559) |
Restructuring charges and asset impairments, net | (7,279) | (11,503) | (10,877) | (12,407) |
Interest, net | (39,062) | (41,969) | (78,028) | (85,047) |
Other income (expense) | 27 | 0 | (17,683) | 0 |
Transaction costs | (2,150) | 0 | (3,876) | (1,055) |
Commerce Services | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 410,457 | 361,830 | 811,558 | 742,878 |
Commerce Services | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | (114) | 6,572 | 352 | 25,887 |
Commerce Services | Global Ecommerce | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 282,319 | 239,100 | 548,573 | 485,690 |
EBIT | (15,576) | (5,993) | (30,176) | (13,704) |
Commerce Services | Presort Services | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 128,138 | 122,730 | 262,985 | 257,188 |
EBIT | 15,462 | 12,565 | 30,528 | 39,591 |
SMB Solutions | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 378,116 | 411,707 | 772,099 | 850,948 |
SMB Solutions | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | 124,738 | 133,230 | 247,141 | 277,820 |
SMB Solutions | North America Mailing | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 303,417 | 318,901 | 618,891 | 659,712 |
EBIT | 112,804 | 120,139 | 223,417 | 248,707 |
SMB Solutions | International Mailing | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 74,699 | 92,806 | 153,208 | 191,236 |
EBIT | 11,934 | 13,091 | 23,724 | 29,113 |
Software Solutions | ||||
Segment reporting information profit (loss) | ||||
Revenue from contracts with customers | 72,206 | 91,703 | 145,524 | 167,997 |
Software Solutions | Operating Segments | ||||
Segment reporting information profit (loss) | ||||
EBIT | $ 2,002 | $ 18,433 | $ 3,694 | $ 20,925 |
Discontinued Operations (Financ
Discontinued Operations (Financial Information) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Loss) income from discontinued operations, net of tax | $ (6,581) | $ 1,208 | $ (7,811) | $ 9,695 | |
Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on sale | $ (18,000) | ||||
DMT | Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | 0 | 89,201 | 0 | 191,435 | |
Earnings (loss) from discontinued operations | 0 | 8,278 | (663) | 21,620 | |
Loss on sale | (8,589) | (7,238) | (9,257) | (8,777) | |
(Loss) income from discontinued operations before taxes | (8,589) | 1,040 | (9,920) | 12,843 | |
Tax (benefit) provision | (2,008) | (168) | (2,109) | 3,148 | |
(Loss) income from discontinued operations, net of tax | $ (6,581) | $ 1,208 | $ (7,811) | $ 9,695 |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||
Income from continuing operations | $ 30,278 | $ 50,387 | $ 28,849 | $ 101,870 | |
Numerator: | |||||
(Loss) income from discontinued operations, net of tax | (6,581) | 1,208 | (7,811) | 9,695 | |
Net income | 23,697 | 51,595 | 21,038 | 111,565 | |
Less: Preference stock dividend | 0 | 8 | 8 | 16 | |
Income attributable to common stockholders (numerator for basic EPS) | $ 23,697 | $ 51,587 | $ 21,030 | $ 111,549 | |
Denominator: | |||||
Weighted-average shares used in basic EPS (in shares) | 177,192 | 187,180 | 181,446 | 187,004 | |
Dilutive effect of common stock equivalents (in shares) | 1,089 | 934 | 1,192 | 1,053 | |
Weighted-average shares used in diluted EPS (in shares) | 178,281 | 188,114 | 182,638 | 188,057 | |
Basic (loss) earnings per share: | |||||
Continuing operations (in dollars per share) | [1] | $ 0.17 | $ 0.27 | $ 0.16 | $ 0.54 |
Discontinued operations (in dollars per share) | [1] | (0.04) | 0.01 | (0.04) | 0.05 |
Net income (in dollars per share) | [1] | 0.13 | 0.28 | 0.12 | 0.60 |
Diluted (loss) earnings per share: | |||||
Continuing operations (in dollars per share) | [1] | 0.17 | 0.27 | 0.16 | 0.54 |
Discontinued operations (in dollars per share) | [1] | (0.04) | 0.01 | (0.04) | 0.05 |
Net income (in dollars per share) | [1] | $ 0.13 | $ 0.27 | $ 0.12 | $ 0.59 |
Anti-dilutive options excluded from diluted earnings per share (in shares) | 16,297 | 12,453 | 16,077 | 11,959 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,740 | $ 8,231 |
Supplies and service parts | 23,701 | 21,841 |
Finished products | 40,389 | 36,690 |
Inventory at FIFO cost | 77,830 | 66,762 |
Excess of FIFO cost over LIFO cost | (4,483) | (4,483) |
Total inventory, net | $ 73,347 | $ 62,279 |
Finance Assets and Lessor Ope_3
Finance Assets and Lessor Operating Leases (Finance Receivables) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in receivables | $ 1,236,903 | $ 1,289,142 |
North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in receivables | 1,048,344 | 1,063,370 |
International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in receivables | 188,559 | 225,772 |
Sales-type lease receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 1,278,208 | 1,352,932 |
Unguaranteed residual values | 56,955 | 65,409 |
Unearned income | (397,363) | (438,566) |
Allowance for credit losses | (13,584) | (12,608) |
Net investment in receivables | 924,216 | 967,167 |
Sales-type lease receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 1,081,063 | 1,110,896 |
Unguaranteed residual values | 45,279 | 52,637 |
Unearned income | (349,996) | (383,453) |
Allowance for credit losses | (11,322) | (10,252) |
Net investment in receivables | 765,024 | 769,828 |
Sales-type lease receivables | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 197,145 | 242,036 |
Unguaranteed residual values | 11,676 | 12,772 |
Unearned income | (47,367) | (55,113) |
Allowance for credit losses | (2,262) | (2,356) |
Net investment in receivables | 159,192 | 197,339 |
Loan receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 319,820 | 329,589 |
Allowance for credit losses | (7,133) | (7,614) |
Net investment in receivables | 312,687 | 321,975 |
Loan receivables | North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 289,694 | 300,319 |
Allowance for credit losses | (6,374) | (6,777) |
Net investment in receivables | 283,320 | 293,542 |
Loan receivables | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 30,126 | 29,270 |
Allowance for credit losses | (759) | (837) |
Net investment in receivables | $ 29,367 | $ 28,433 |
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 and Lessor Ope_4
Finance Assets and Lessor Operating Leases (Sales-type Lease Receivables) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining for year ending December 31, 2019 | $ 421,064 |
Year ending December 31, 2020 | 355,647 |
Year ending December 31, 2021 | 254,217 |
Year ending December 31, 2022 | 155,533 |
Year ending December 31, 2023 | 74,079 |
Thereafter | 17,668 |
Total | 1,278,208 |
North America | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining for year ending December 31, 2019 | 381,156 |
Year ending December 31, 2020 | 298,935 |
Year ending December 31, 2021 | 209,673 |
Year ending December 31, 2022 | 125,705 |
Year ending December 31, 2023 | 57,256 |
Thereafter | 8,338 |
Total | 1,081,063 |
International | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining for year ending December 31, 2019 | 39,908 |
Year ending December 31, 2020 | 56,712 |
Year ending December 31, 2021 | 44,544 |
Year ending December 31, 2022 | 29,828 |
Year ending December 31, 2023 | 16,823 |
Thereafter | 9,330 |
Total | $ 197,145 |
Finance Assets and Lessor Ope_5
Finance Assets and Lessor Operating Leases (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition resume period (less than) | 60 days | |
Allowance for Credit Losses | ||
Balance Beginning | $ 20,222 | $ 18,633 |
Amounts charged to expense | 6,759 | 10,247 |
Write-offs and other | (6,264) | (7,536) |
Balance Closing | $ 20,717 | 21,344 |
Sales-type lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition discontinuation period (more than) | 120 days | |
Sales-type lease receivables | North America | ||
Allowance for Credit Losses | ||
Balance Beginning | $ 10,252 | 7,721 |
Amounts charged to expense | 3,660 | 5,946 |
Write-offs and other | (2,590) | (2,538) |
Balance Closing | 11,322 | 11,129 |
Sales-type lease receivables | International | ||
Allowance for Credit Losses | ||
Balance Beginning | 2,356 | 2,794 |
Amounts charged to expense | 455 | 545 |
Write-offs and other | (549) | (933) |
Balance Closing | $ 2,262 | 2,406 |
Loan receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition discontinuation period (more than) | 90 days | |
Loan receivables | North America | ||
Allowance for Credit Losses | ||
Balance Beginning | $ 6,777 | 7,098 |
Amounts charged to expense | 2,329 | 3,506 |
Write-offs and other | (2,732) | (3,735) |
Balance Closing | 6,374 | 6,869 |
Loan receivables | International | ||
Allowance for Credit Losses | ||
Balance Beginning | 837 | 1,020 |
Amounts charged to expense | 315 | 250 |
Write-offs and other | (393) | (330) |
Balance Closing | $ 759 | $ 940 |
Finance Assets and Lessor Ope_6
Finance Assets and Lessor Operating Leases (Aging of Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,598,028 | $ 1,682,521 |
1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 1,557,162 | 1,630,607 |
Contract value | 1,557,162 | 1,630,607 |
Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 40,866 | 51,914 |
Still accruing interest | 9,925 | 10,869 |
Not accruing interest | 30,941 | 41,045 |
Contract value | 40,866 | 51,914 |
Sales-type lease receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,081,063 | 1,110,896 |
Sales-type lease receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 1,051,352 | 1,069,288 |
Contract value | 1,051,352 | 1,069,288 |
Sales-type lease receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 29,711 | 41,608 |
Still accruing interest | 6,467 | 7,917 |
Not accruing interest | 23,244 | 33,691 |
Contract value | 29,711 | 41,608 |
Sales-type lease receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 197,145 | 242,036 |
Sales-type lease receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 192,135 | 238,114 |
Contract value | 192,135 | 238,114 |
Sales-type lease receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 5,010 | 3,922 |
Still accruing interest | 1,410 | 1,111 |
Not accruing interest | 3,600 | 2,811 |
Contract value | 5,010 | 3,922 |
Loan receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 289,694 | 300,319 |
Loan receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 283,809 | 294,126 |
Contract value | 283,809 | 294,126 |
Loan receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 5,885 | 6,193 |
Still accruing interest | 1,932 | 1,769 |
Not accruing interest | 3,953 | 4,424 |
Contract value | 5,885 | 6,193 |
Loan receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 30,126 | 29,270 |
Loan receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 29,866 | 29,079 |
Contract value | 29,866 | 29,079 |
Loan receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 260 | 191 |
Still accruing interest | 116 | 72 |
Not accruing interest | 144 | 119 |
Contract value | $ 260 | $ 191 |
Finance Assets and Lessor Ope_7
Finance Assets and Lessor Operating Leases (Credit Quality) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 40.00% | |
High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Sales-type lease receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | $ 1,278,208 | $ 1,352,932 |
Sales-type lease receivables | North America | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 1,081,063 | 1,110,896 |
Sales-type lease receivables | North America | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 893,068 | 922,414 |
Sales-type lease receivables | North America | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 131,312 | 131,650 |
Sales-type lease receivables | North America | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 20,930 | 22,110 |
Sales-type lease receivables | North America | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 35,753 | 34,722 |
Loan receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 319,820 | 329,589 |
Loan receivables | North America | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 289,694 | 300,319 |
Loan receivables | North America | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 229,888 | 238,620 |
Loan receivables | North America | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 42,731 | 43,952 |
Loan receivables | North America | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | 5,703 | 5,947 |
Loan receivables | North America | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross finance receivables | $ 11,372 | $ 11,800 |
Finance Assets and Lessor Ope_8
Finance Assets and Lessor Operating Leases (Lease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Profit recognized at commencement | $ 34,320 | $ 39,642 | $ 70,678 | $ 86,929 |
Interest income | 58,045 | 60,855 | 117,523 | 122,687 |
Total lease income from sales-type leases | $ 92,365 | $ 100,497 | $ 188,201 | $ 209,616 |
Finance Assets and Lessor Ope_9
Finance Assets and Lessor Operating Leases (Operating Leases) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessor, Lease, Description [Line Items] | |
Remaining for year ending December 31, 2019 | $ 18,383 |
Year ending December 31, 2020 | 27,684 |
Year ending December 31, 2021 | 12,394 |
Year ending December 31, 2022 | 6,348 |
Year ending December 31, 2023 | 2,886 |
Thereafter | 182 |
Total | $ 67,877 |
Mailing Equipment | Minimum | |
Lessor, Lease, Description [Line Items] | |
Term | 1 year |
Mailing Equipment | Maximum | |
Lessor, Lease, Description [Line Items] | |
Term | 5 years |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite lived intangible assets | |||||
Gross Carrying Amount | $ 689,551 | $ 689,551 | $ 686,095 | ||
Accumulated Amortization | (476,955) | (476,955) | (458,958) | ||
Net Carrying Amount | 212,596 | 212,596 | 227,137 | ||
Amortization expense | 10,000 | $ 11,000 | 21,000 | $ 22,000 | |
Customer relationships | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 484,597 | 484,597 | 480,837 | ||
Accumulated Amortization | (294,244) | (294,244) | (281,190) | ||
Net Carrying Amount | 190,353 | 190,353 | 199,647 | ||
Software & technology | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 164,849 | 164,849 | 165,088 | ||
Accumulated Amortization | (147,130) | (147,130) | (143,877) | ||
Net Carrying Amount | 17,719 | 17,719 | 21,211 | ||
Trademarks & other | |||||
Finite lived intangible assets | |||||
Gross Carrying Amount | 40,105 | 40,105 | 40,170 | ||
Accumulated Amortization | (35,581) | (35,581) | (33,891) | ||
Net Carrying Amount | $ 4,524 | $ 4,524 | $ 6,279 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite lived intangible assets future amortization expense | ||
Remaining for year ending December 31, 2019 | $ 19,898 | |
Year ending December 31, 2020 | 35,551 | |
Year ending December 31, 2021 | 31,033 | |
Year ending December 31, 2022 | 29,801 | |
Year ending December 31, 2023 | 26,726 | |
Thereafter | 69,587 | |
Net Carrying Amount | $ 212,596 | $ 227,137 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill (Goodwill) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Jan. 31, 2019 | Jun. 30, 2019 | |
Goodwill | ||
Beginning balance | $ 1,766,511 | $ 1,766,511 |
Divestiture | (10,000) | (10,490) |
Currency impact | (1,411) | |
Ending balance | 1,754,610 | |
Commerce Services | ||
Goodwill | ||
Beginning balance | 816,896 | 816,896 |
Divestiture | 0 | |
Currency impact | 0 | |
Ending balance | 816,896 | |
Commerce Services | Global Ecommerce | ||
Goodwill | ||
Beginning balance | 609,431 | 609,431 |
Divestiture | 0 | |
Currency impact | 0 | |
Ending balance | 609,431 | |
Commerce Services | Presort Services | ||
Goodwill | ||
Beginning balance | 207,465 | 207,465 |
Divestiture | 0 | |
Currency impact | 0 | |
Ending balance | 207,465 | |
SMB Solutions | ||
Goodwill | ||
Beginning balance | 515,455 | 515,455 |
Divestiture | (10,490) | |
Currency impact | (1,211) | |
Ending balance | 503,754 | |
SMB Solutions | North America Mailing | ||
Goodwill | ||
Beginning balance | 368,248 | 368,248 |
Divestiture | 0 | |
Currency impact | 326 | |
Ending balance | 368,574 | |
SMB Solutions | International Mailing | ||
Goodwill | ||
Beginning balance | 147,207 | 147,207 |
Divestiture | (10,490) | |
Currency impact | (1,537) | |
Ending balance | 135,180 | |
Software Solutions | ||
Goodwill | ||
Beginning balance | $ 434,160 | 434,160 |
Divestiture | 0 | |
Currency impact | (200) | |
Ending balance | $ 433,960 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 827,853 | $ 919,371 |
Liabilities | (297) | (735) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 318,322 | 321,116 |
Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 509,531 | 598,255 |
Liabilities | (297) | (735) |
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 | 559,711 | 612,647 |
Money market funds / commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 237,848 | 220,756 |
Money market funds / commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 321,863 | 391,891 |
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 | 22,372 | 19,133 |
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 | 22,372 | 19,133 |
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 | 22,844 | 21,711 |
Commingled fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,632 | 1,570 |
Commingled fixed income securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 21,212 | 20,141 |
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 | 86,392 | 108,577 |
Government and related securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 78,842 | 98,790 |
Government and related securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7,550 | 9,787 |
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 | 50,774 | 56,938 |
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 | 50,774 | 56,938 |
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 | 85,415 | 98,334 |
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 | 85,415 | 98,334 |
Mortgage-backed / asset-backed securities | 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 | 345 | 2,031 |
Liabilities | (297) | (735) |
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 | 345 | 2,031 |
Liabilities | (297) | (735) |
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 D_4
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 221,513 | $ 270,313 |
Gross unrealized gains | 3,288 | 218 |
Gross unrealized losses | (672) | (5,202) |
Estimated fair value | 224,129 | 265,329 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 85,292 | 109,776 |
Gross unrealized gains | 1,063 | 47 |
Gross unrealized losses | (47) | (1,336) |
Estimated fair value | 86,308 | 108,487 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 49,507 | 58,714 |
Gross unrealized gains | 1,320 | 4 |
Gross unrealized losses | (53) | (1,780) |
Estimated fair value | 50,774 | 56,938 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,656 | 1,637 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (24) | (67) |
Estimated fair value | 1,632 | 1,570 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 85,058 | 100,186 |
Gross unrealized gains | 905 | 167 |
Gross unrealized losses | (548) | (2,019) |
Estimated fair value | $ 85,415 | $ 98,334 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments (Unrealized Holding Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Less than 12 continuous months | $ 502 | $ 48,318 |
Greater than 12 continuous months | 56,970 | 177,331 |
Total | 57,472 | 225,649 |
Gross unrealized losses | ||
Less than 12 continuous months | 2 | 847 |
Greater than 12 continuous months | 670 | 4,355 |
Total | $ 672 | $ 5,202 |
Fair Value Measurements and D_6
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Within 1 year | $ 47,535 | |
After 1 year through 5 years | 68,901 | |
After 5 years through 10 years | 34,951 | |
After 10 years | 70,126 | |
Total | 221,513 | $ 270,313 |
Estimated fair value | ||
Within 1 year | 47,589 | |
After 1 year through 5 years | 69,407 | |
After 5 years through 10 years | 36,121 | |
After 10 years | 71,012 | |
Total | $ 224,129 | $ 265,329 |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Amount of ineffectiveness | $ 0 | |
Collateral outstanding | 0 | |
Notes due December 2020 | New Term Loan | ||
Derivative [Line Items] | ||
Loan amount | 300,000,000 | |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | 9,000,000 | $ 8,000,000 |
Interest Rate Swap | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 300,000,000 |
Fair Value Measurements and D_8
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total net derivative asset | $ 48 | $ 1,296 |
Total derivative assets | ||
Derivative [Line Items] | ||
Total net derivative asset | 345 | 2,031 |
Total derivative liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (297) | (735) |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 51 | 61 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (190) | (104) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 294 | 1,970 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | $ (107) | $ (631) |
Fair Value Measurements and D_9
Fair Value Measurements and Derivative Instruments (Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | $ (320) | $ (652) | $ 25 | $ (798) |
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (7) | 78 | 120 | (9) |
Revenue | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (36) | 79 | 75 | 76 |
Cost of sales | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 29 | (1) | 45 | (85) |
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) | (320) | 119 | 25 | 154 |
Foreign exchange contracts | Selling, general and administrative expense | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in Earnings | (65) | (14,828) | 5,205 | (18,396) |
Interest rate swap | ||||
Derivative [Line Items] | ||||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | $ 0 | $ (771) | $ 0 | $ (952) |
Fair Value Measurements and _10
Fair Value Measurements and Derivative Instruments (Fair Value of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 3,244,173 | $ 3,265,608 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 3,101,477 | $ 3,003,678 |
Restructuring Charges and Ass_3
Restructuring Charges and Asset Impairments (Restructuring Charges) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Costs | ||
Balance Beginning | $ 15,449 | $ 43,720 |
Expenses, net | 9,086 | 12,407 |
Cash payments | (14,283) | (27,528) |
Balance Ending | $ 10,252 | 28,599 |
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 | $ 13,641 | 42,151 |
Expenses, net | 8,379 | 7,990 |
Cash payments | (12,064) | (26,942) |
Balance Ending | 9,956 | 23,199 |
Other exit costs | ||
Restructuring Costs | ||
Balance Beginning | 1,808 | 1,569 |
Expenses, net | 707 | 4,417 |
Cash payments | (2,219) | (586) |
Balance Ending | $ 296 | $ 5,400 |
Restructuring Charges and Ass_4
Restructuring Charges and Asset Impairments (Asset Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Asset impairment charges | $ 1 | $ 1 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal amount | $ 3,271,051 | $ 3,296,138 |
Less: unamortized costs, net | 26,878 | 30,530 |
Total debt | 3,244,173 | 3,265,608 |
Less: current portion long-term debt | 214,927 | 199,535 |
Long-term debt | $ 3,029,246 | 3,066,073 |
Notes due | Notes due September 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.875% | |
Principal amount | $ 300,000 | 300,000 |
Notes due | Notes due October 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.875% | |
Principal amount | $ 600,000 | 600,000 |
Notes due | Notes due May 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.625% | |
Principal amount | $ 400,000 | 400,000 |
Notes due | Notes due April 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.95% | |
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 | 605,000 | 630,000 |
Other debt | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 5,210 | $ 5,297 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Apr. 30, 2019 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Increase in interest rate | 0.25% | |
Term loans | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 25 | |
Notes due May 2022 | Notes due | ||
Debt Instrument [Line Items] | ||
Increase in interest rate | 0.25% |
Pensions and Other Benefit Pr_3
Pensions and Other Benefit Programs (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Charges | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement | $ (700) | $ (700) | ||
Discontinued Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement | (300) | (300) | ||
Defined Benefit Pension Plans | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 21 | $ 9 | 42 | $ 46 |
Interest cost | 15,708 | 15,108 | 31,586 | 30,724 |
Expected return on plan assets | (23,184) | (25,119) | (46,363) | (50,543) |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (15) | (15) | (30) | (30) |
Amortization of net actuarial loss | 6,037 | 7,628 | 13,073 | 15,704 |
Settlement | 801 | 0 | 801 | 0 |
Net periodic benefit (income) cost | (632) | (2,389) | (891) | (4,099) |
Contributions to benefit plans | 2,423 | 1,906 | 4,051 | 3,194 |
Defined Benefit Pension Plans | Foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 388 | 575 | 772 | 1,164 |
Interest cost | 4,308 | 4,591 | 8,796 | 9,287 |
Expected return on plan assets | (8,505) | (9,118) | (17,269) | (18,304) |
Amortization of transition credit | (1) | (2) | (3) | (3) |
Amortization of prior service (credit) cost | 60 | (18) | 123 | (37) |
Amortization of net actuarial loss | 1,572 | 1,870 | 3,184 | 3,783 |
Settlement | 397 | 0 | 397 | 0 |
Net periodic benefit (income) cost | (1,781) | (2,102) | (4,000) | (4,110) |
Contributions to benefit plans | 878 | 769 | 9,088 | 9,979 |
Nonpension Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 228 | 405 | 483 | 811 |
Interest cost | 1,637 | 1,607 | 3,291 | 3,210 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of transition credit | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 81 | 88 | 161 | 176 |
Amortization of net actuarial loss | 503 | 881 | 1,014 | 1,815 |
Settlement | 0 | 0 | 0 | 0 |
Net periodic benefit (income) cost | 2,449 | 2,981 | 4,949 | 6,012 |
Contributions to benefit plans | $ 4,457 | $ 4,316 | $ 9,213 | $ 9,111 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | ||||||
Effective tax rate (percent) | 11.90% | 13.60% | 30.10% | 20.80% | ||
Tax benefit from resolution of settlement | $ 4,000 | $ 3,000 | $ 6,000 | |||
Tax from Market Exits | 2,000 | |||||
Loss on disposition of businesses | $ 17,683 | $ 0 | ||||
Charge from valuation allowance for tax carryovers | $ 2,000 | |||||
Valuation allowance | $ 142,000 | |||||
Percent decrease in unrecognized benefits, reasonably possible (up to) | 30.00% | 30.00% | ||||
Forecast | ||||||
Valuation Allowance [Line Items] | ||||||
Potential release of deferred tax asset valuation allowance | $ 20,000 |
Leased Assets and Liabilities_2
Leased Assets and Liabilities (Operating and Finance Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating | $ 180,983 | $ 156,788 |
Finance | 11,501 | 10,683 |
Total leased assets | 192,484 | 167,471 |
Current operating lease liabilities | 34,612 | 37,208 |
Noncurrent operating lease liabilities | 154,648 | 127,237 |
Accounts payable and accrued liabilities | 2,809 | 2,708 |
Other noncurrent liabilities | 7,739 | 7,054 |
Total lease liabilities | $ 199,808 | $ 174,207 |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 15 years | |
Option to extend | 5 years |
Leased Assets and Liabilities_3
Leased Assets and Liabilities (Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease expense | $ 11,695 | $ 11,145 | $ 23,786 | $ 23,422 |
Amortization of leased assets | 811 | 640 | 1,691 | 1,242 |
Interest on lease liabilities | 176 | 125 | 348 | 243 |
Variable lease expense | 7,988 | 7,952 | 13,852 | 13,094 |
Sublease income | (679) | (203) | (1,345) | (452) |
Total expense | $ 19,991 | $ 19,659 | $ 38,332 | $ 37,549 |
Leased Assets and Liabilities_4
Leased Assets and Liabilities (Lease Maturity) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
Remaining for year ending December 31, 2019 | $ 22,257 |
Year ending December 31, 2020 | 42,878 |
Year ending December 31, 2021 | 35,937 |
Year ending December 31, 2022 | 27,637 |
Year ending December 31, 2023 | 21,032 |
Thereafter | 89,177 |
Total | 238,918 |
Less: present value discount | 49,658 |
Lease liability | 189,260 |
Finance Leases | |
Remaining for year ending December 31, 2019 | 1,803 |
Year ending December 31, 2020 | 3,105 |
Year ending December 31, 2021 | 2,712 |
Year ending December 31, 2022 | 2,162 |
Year ending December 31, 2023 | 1,518 |
Thereafter | 813 |
Total | 12,113 |
Less: present value discount | 1,565 |
Lease liability | 10,548 |
Total | |
Remaining for year ending December 31, 2019 | 24,060 |
Year ending December 31, 2020 | 45,983 |
Year ending December 31, 2021 | 38,649 |
Year ending December 31, 2022 | 29,799 |
Year ending December 31, 2023 | 22,550 |
Thereafter | 89,990 |
Total | 251,031 |
Less: present value discount | 51,223 |
Lease liability | 199,808 |
Leases signed but not yet commenced | $ 28,000 |
Leased Assets and Liabilities_5
Leased Assets and Liabilities (Weighted-Average) (Details) | Jun. 30, 2019 | Jun. 30, 2018 |
Weighted-average remaining lease term | ||
Operating leases | 7 years 6 months | 5 years 10 months 24 days |
Finance leases | 4 years 1 month 6 days | 3 years 9 months 18 days |
Weighted-average discount rate | ||
Operating leases | 5.80% | 4.70% |
Finance leases | 6.60% | 6.20% |
Leased Assets and Liabilities_6
Leased Assets and Liabilities (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Operating cash outflows - operating leases | $ 11,073 | $ 10,987 | $ 22,870 | $ 22,738 |
Operating cash outflows - finance leases | 176 | 125 | 348 | 243 |
Financing cash outflows - finance leases | 775 | 592 | 1,520 | 1,156 |
Leased assets obtained in exchange for new lease obligations | ||||
Operating leases | 40,907 | 3,998 | 49,060 | 6,994 |
Finance leases | $ 430 | $ 88 | $ 2,103 | $ 1,160 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | $ 86,356 | $ 62,914 | $ 101,842 | $ 30,553 | |
Cumulative effect of accounting change | $ (12,207) | ||||
Net income | 23,697 | 51,595 | 21,038 | 111,565 | |
Other comprehensive income (loss) | 10,394 | (36,614) | 41,283 | (16,864) | |
Dividends paid | (8,938) | (35,097) | (18,346) | (70,113) | |
Issuance of common stock | 217 | 283 | (1,733) | (3,126) | |
Conversion to common stock | 0 | 0 | 0 | 0 | |
Preferred Stock Redemption Premium | (277) | ||||
Stock-based compensation expense | 2,381 | 5,880 | 9,165 | 9,153 | |
Repurchase of common stock | (60,858) | (100,000) | |||
Balances, end of period | $ 52,972 | $ 48,961 | $ 52,972 | $ 48,961 | |
Dividends paid (USD per share) | $ 0.05 | $ 0.1875 | $ 0.10 | $ 0.375 | |
Preferred stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | $ 1 | $ 1 | $ 1 | $ 1 | |
Preferred Stock Redemption Premium | (1) | ||||
Balances, end of period | 0 | 1 | 0 | 1 | |
Preference stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 388 | 422 | 396 | 441 | |
Conversion to common stock | (122) | (7) | (130) | (26) | |
Preferred Stock Redemption Premium | (266) | ||||
Balances, end of period | 0 | 415 | 0 | 415 | |
Common stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 323,338 | 323,338 | 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 | 109,166 | 119,647 | 121,475 | 138,367 | |
Issuance of common stock | (3,807) | (2,660) | (22,731) | (24,267) | |
Conversion to common stock | (2,389) | (135) | (2,558) | (521) | |
Preferred Stock Redemption Premium | (10) | ||||
Stock-based compensation expense | 2,381 | 5,880 | 9,165 | 9,153 | |
Balances, end of period | 105,341 | 122,732 | 105,341 | 122,732 | |
Retained earnings | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | 5,267,615 | 5,087,090 | 5,279,682 | 5,074,343 | |
Cumulative effect of accounting change | $ (12,207) | ||||
Net income | 23,697 | 51,595 | 21,038 | 111,565 | |
Dividends paid | (8,938) | (35,097) | (18,346) | (70,113) | |
Balances, end of period | 5,282,374 | 5,103,588 | 5,282,374 | 5,103,588 | |
Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | (918,072) | (775,190) | (948,961) | (794,940) | |
Other comprehensive income (loss) | 10,394 | (36,614) | 41,283 | (16,864) | |
Balances, end of period | (907,678) | (811,804) | (907,678) | (811,804) | |
Treasury stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balances, beginning of period | (4,696,080) | (4,692,394) | (4,674,089) | (4,710,997) | |
Issuance of common stock | 4,024 | 2,943 | 20,998 | 21,141 | |
Conversion to common stock | 2,511 | 142 | 2,688 | 547 | |
Repurchase of common stock | (60,858) | (100,000) | |||
Balances, end of period | $ (4,750,403) | $ (4,689,309) | $ (4,750,403) | $ (4,689,309) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 860,779 | $ 865,240 | $ 1,729,181 | $ 1,761,823 |
Interest expense, net | (28,019) | (30,775) | (55,621) | (62,789) |
Income from continuing operations before taxes | 34,377 | 58,286 | 41,249 | 128,564 |
Income tax benefit (provision) | (4,099) | (7,899) | (12,400) | (26,694) |
Net income | 23,697 | 51,595 | 21,038 | 111,565 |
Pension and Postretirement Benefit Plans | (278,545) | (289,427) | (579,527) | (592,237) |
Reclassification out of Accumulated Other Comprehensive Loss | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (36) | 79 | 75 | 76 |
Cost of sales | 29 | (1) | 45 | (85) |
Interest expense, net | 0 | (507) | 0 | (1,014) |
Income from continuing operations before taxes | (7) | (429) | 120 | (1,023) |
Income tax benefit (provision) | 1 | 110 | (31) | 261 |
Net income | (6) | (319) | 89 | (762) |
Reclassification out of Accumulated Other Comprehensive Loss | Available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | (81) | 214 | (104) | 190 |
Income tax benefit (provision) | 21 | (54) | 27 | (48) |
Net income | (60) | 160 | (77) | 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 | (9,435) | (10,432) | (18,720) | (21,408) |
Income tax benefit (provision) | 2,124 | 2,564 | 4,773 | 5,368 |
Net income | (7,311) | (7,868) | (13,947) | (16,040) |
Reclassification out of Accumulated Other Comprehensive Loss | Transition credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and Postretirement Benefit Plans | 1 | 2 | 3 | 3 |
Reclassification out of Accumulated Other Comprehensive Loss | Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and Postretirement Benefit Plans | (126) | (55) | (254) | (109) |
Reclassification out of Accumulated Other Comprehensive Loss | Settlements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and Postretirement Benefit Plans | (1,198) | 0 | (1,198) | 0 |
Reclassification out of Accumulated Other Comprehensive Loss | Actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and Postretirement Benefit Plans | $ (8,112) | $ (10,379) | $ (17,271) | $ (21,302) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | $ 86,356 | $ 62,914 | $ 101,842 | $ 30,553 |
Other comprehensive income (loss) before reclassifications | 27,348 | (33,524) | ||
Reclassifications into earnings | 13,935 | 16,660 | ||
Other comprehensive income (loss), net of tax | 10,394 | (36,614) | 41,283 | (16,864) |
Balances, end of period | 52,972 | 48,961 | 52,972 | 48,961 |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | 191 | (406) | ||
Other comprehensive income (loss) before reclassifications | 18 | (511) | ||
Reclassifications into earnings | (89) | 762 | ||
Other comprehensive income (loss), net of tax | (71) | 251 | ||
Balances, end of period | 120 | (155) | 120 | (155) |
Available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (3,061) | 1,597 | ||
Other comprehensive income (loss) before reclassifications | 5,952 | (5,154) | ||
Reclassifications into earnings | 77 | (142) | ||
Other comprehensive income (loss), net of tax | 6,029 | (5,296) | ||
Balances, end of period | 2,968 | (3,699) | 2,968 | (3,699) |
Pension and postretirement benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (846,461) | (748,800) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassifications into earnings | 13,947 | 16,040 | ||
Other comprehensive income (loss), net of tax | 13,947 | 16,040 | ||
Balances, end of period | (832,514) | (732,760) | (832,514) | (732,760) |
Foreign currency adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (99,630) | (47,331) | ||
Other comprehensive income (loss) before reclassifications | 21,378 | (27,859) | ||
Reclassifications into earnings | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 21,378 | (27,859) | ||
Balances, end of period | (78,252) | (75,190) | (78,252) | (75,190) |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balances, beginning of period | (918,072) | (775,190) | (948,961) | (794,940) |
Other comprehensive income (loss), net of tax | 10,394 | (36,614) | 41,283 | (16,864) |
Balances, end of period | $ (907,678) | $ (811,804) | $ (907,678) | $ (811,804) |