Pitney Bowes 2008 Annual Report Download - page 78

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
59
In September 2007, we issued $500 million of unsecured fixed rate notes maturing in September 2017. These notes bear interest at an
annual rate of 5.75% and pay interest semi-annually beginning in March 2008. The proceeds from these notes were used for general
corporate purposes, including the repayment of commercial paper, the financing of acquisitions, and repurchase of our stock.
In June 2008, we filed a “Well-known Seasoned Issuer” registration statement with the SEC which permits the issuance of debt
securities, preferred stock, preference stock, common stock, purchase contracts, depositary shares, warrants and units.
The annual maturities of the outstanding long-term debt during each of the next five years are as follows: 2010 – no maturities; 2011 –
no maturities; 2012 – $550 million; 2013 – $375 million; and $2,950 million thereafter. The remaining outstanding notes with a $150
million face value are reported in current portion of long-term debt at December 31, 2008.
The fair value hedges basis adjustment represents the revaluation of fixed rate debt that has been hedged in accordance with SFAS No.
133. See Note 19 to the Consolidated Financial Statements.
9. Income Taxes
Years ended December 31,
2008 2007 2006
Continuing operations:
Total current $ 142,263 $ 160,839 $ 298,364
Total deferred 102,666 119,383 36,640
Provision for income taxes $ 244,929 $ 280,222 $ 335,004
U.S. and international components of income from operations before income taxes and minority interest are as follows:
Years ended December 31,
2008 2007 2006
Continuing operations:
U.S. $ 573,066 $ 624,030 $ 719,931
International 140,111 36,681 194,559
Total continuing operations 713,177 660,711 914,490
Discontinued operations - - (682,149)
Total $ 713,177 $ 660,711 $ 232,341
The effective tax rates for continuing operations for 2008, 2007 and 2006 were 34.3%, 42.4% and 36.6%, respectively. The effective
tax rate for 2007 included $54 million of tax charges related principally to a valuation allowance for certain deferred tax assets and tax
rate changes outside of the U.S. The effective tax rate for 2006 included a $20 million charge related to the IRS settlement discussed
below.