Pitney Bowes 2008 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2008 Pitney Bowes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
77
We expect to prevail in the lawsuits against Imagitas; however, as litigation is inherently unpredictable, there can be no assurance in
this regard. If the plaintiffs do prevail, the results may have a material effect on our financial position, future results of operations or
cash flows, including, for example, our ability to offer certain types of goods or services in the future.
Product Warranty
We provide product warranties in conjunction with certain product sales, generally for a period of 90 days from the date of
installation. Our product warranty liability reflects our best estimate of probable liability or product warranties based on historical
claims experience, which has not been significant, and other currently available evidence. Accordingly, our product warranty liability
at December 31, 2008 and 2007, respectively, was not material.
16. Leases
In addition to factory and office facilities owned, we lease similar properties, as well as sales and service offices, equipment and
other properties, generally under long-term operating lease agreements extending from 3 to 25 years.
Future minimum lease payments under non-cancelable operating leases at December 31, 2008 are as follows:
Years ending December 31, Operating leases
2009 $ 80,622
2010 61,696
2011 45,468
2012 32,956
2013 21,163
Thereafter 25,338
Total minimum lease payments $ 267,243
Rental expense was $129.1 million, $146.9 million and $138.8 million in 2008, 2007 and 2006, respectively.
17. Finance Assets
Finance Receivables
Finance receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from 3 to 5 years and are
comprised of sales-type leases and customer loan receivables.
The components of finance receivables were as follows:
December 31,
2008 2007
Gross finance receivables $ 3,338,799 $ 3,587,947
Unguaranteed residual values 273,529 260,815
Unearned income (666,742) (740,046)
Initial direct cost deferred 1,914 1,914
Allowance for credit losses (71,790) (78,371)
Net investment in finance receivables $ 2,875,710 $ 3,032,259
Net investment in finance receivables include net customer loan receivables at December 31, 2008 and 2007 of $528.8 million and
$552.9 million, respectively. Customer loan receivables arise primarily from financing services offered to our customers for postage,
supplies, and shipping payments. Customer loan receivables are generally due each month, however, customers may rollover