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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
55
6. Intangible Assets and Goodwill
The components of our purchased intangible assets are as follows:
December 31, 2008 December 31, 2007
Gross
Carrying
Amount Accumulated
Amortization Net Carr
y
in
g
Amount Gross
Carrying
Amount Accumulated
Amortization Net Carrying
Amount
Customer relationships $ 423,169 $ (154,619) $ 268,550 $ 427,487 $ (119,652) $ 307,835
Supplier relationships 29,000 (10,392) 18,608 29,000 (7,492) 21,508
Mailing software & technology 155,035 (78,982) 76,053 176,558 (65,032) 111,526
Trademarks and trade names 25,071 (13,310) 11,761 32,661 (17,202) 15,459
Non-compete agreements 2,652 (1,802) 850 5,491 (4,631) 860
$ 634,927 $ (259,105) $ 375,822 $ 671,197 $ (214,009) $ 457,188
Amortization expense for intangible assets was $72.3 million, $65.0 million and $53.9 million for the years ended December 31, 2008,
2007 and 2006, respectively. In 2008 and 2007, we recorded impairment charges of $28.5 million and $8.5 million, respectively, and
included these charges in the restructuring charges and asset impairments line of the Consolidated Statements of Income. See Note 14
to the Consolidated Financial Statements for further details.
The estimated future amortization expense related to intangible assets as of December 31, 2008 is as follows:
Year ended December 31, Amount
2009 $ 65,000
2010 58,000
2011 52,000
2012 46,000
2013 43,000
Thereafter 111,822
$ 375,822
During 2008 and 2007, we recorded additions to intangible assets of $18.6 million and $156.4 million, respectively. The components
of these purchased intangible assets are as follows:
December 31, 2008 December 31, 2007
Amount Weighted
Average Life Amount Weighted
Average Life
Customer relationships $ 18,274 12 years $ 107,097 10 years
Mailing software and technology - - 38,961 7 years
Trademarks and trade names - - 10,126 2 years
Non-compete agreements 284 3 years 261 4 years
$ 18,558 11 years $ 156,445 7 years