Pitney Bowes 2007 Annual Report Download - page 97

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
79
Interest Rate Swap Agreements and Foreign Currency Exchange Contracts
The fair values of interest rate swaps and foreign currency exchange contracts are obtained from dealer quotes. These values
represent the estimated amount we would receive or pay to terminate agreements, taking into consideration current interest
rates, the creditworthiness of the counterparties and current foreign currency exchange rates.
The estimated fair value of our financial instruments follows:
December 31,
December 31,
2007
2006
Carrying
value (1)
Fair value
Carrying
value (1)
Fair value
Investment securities ................................. $ 200,006 $ 200,005
$ 142,217 $ 142,217
Loans receivable ........................................ $ 554,370 $ 554,370
$ 524,717 $ 524,717
Long-term debt .......................................... $ (3,848,359) $ (3,722,209) $ (3,905,634) $ (3,796,270)
Interest rate swaps...................................... $ 7,635 $ 7,635
$ (7,543) $ (7,543)
Foreign currency exchange contracts......... $ (12) $ (12)
$ (8,468) $ (8,468)
(1) Carrying value includes accrued interest and deferred fee income, where applicable.
21. Earnings per Share
A reconciliation of the basic and diluted earnings per share computations for income from continuing operations for the years
ended December 31, 2007, 2006 and 2005 is as follows:
2007
Income Shares Per Share
Income from continuing operations ............... $ 361,247
Less:
Preferred stock dividends............................. -
Preference stock dividends .......................... (81)
Basic earnings per share ................................ $ 361,166 218,444,268 $ 1.65
Basic earnings per share ................................ $ 361,166 218,444,268
Effect of dilutive securities:
Preferred stock ............................................. - 3,272
Preference stock........................................... 81 637,877
Stock options ............................................... - 1,971,010
Other ............................................................ - 163,319
Diluted earnings per share ............................. $ 361,247 221,219,746 $ 1.63
Basic earnings per share of common stock: Per Share
Continuing operations.................................................................................................. $ 1.65
Discontinued operations .............................................................................................. 0.03
Net income................................................................................................................... $ 1.68
Diluted earnings per share of common stock: Per Share
Continuing operations.................................................................................................. $ 1.63
Discontinued operations .............................................................................................. 0.03
Net income................................................................................................................... $ 1.66