Pitney Bowes 2009 Annual Report Download - page 23

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5
Material Suppliers
We depend on third-party suppliers for a variety of services, components, supplies and a large portion of our product manufacturing.
We believe we have adequate sources for our purchases of materials, components, services and supplies for products that we
manufacture or assemble.
Regulatory Matters
We are subject to the U.S. Postal Service’s (USPS) regulations and those of foreign postal authorities, related to product specifications
and business practices involving our postage meters. From time to time, we will work with these governing bodies to help in the
enhancement and growth of mail and the mail channel. See “Legal Proceedings” in Item 3 of this Form 10-K.
Employees and Employee Relations
At December 31, 2009, we employed 23,465 persons in the U.S. and 9,539 persons outside the U.S. Headcount decreased in 2009
compared to 2008 primarily due to our restructuring activities. We believe that our current relations with employees are good. The
large majority of our employees are not represented by any labor union. Our management follows the policy of keeping employees
informed of decisions, and encourages and implements employee suggestions whenever practicable.
Executive Officers
See Part III, Item 10. “Directors, Executive Officers and Corporate Governance” of this Form 10-K for information about Executive
Officers of the Registrant.
ITEM 1A. – RISK FACTORS
In addition to other information and risk disclosures contained in this Form 10-K, the risk factors discussed in this section should be
considered in evaluating our business. We work to manage and mitigate these risks proactively, including through our use of an
enterprise risk management program. In our management of these risks, we also evaluate the potential for additional opportunities to
mitigate these risks. Nevertheless, the following risks, some of which may be beyond our control, could materially impact our brand
and reputation or results of operations or could cause future results to differ materially from our current expectations:
Postal regulations and processes
The majority of our revenue is directly or indirectly subject to regulation and oversight by the USPS and foreign postal authorities.
We also depend on a healthy postal sector in the geographic markets where we do business, which could be influenced positively or
negatively by legislative or regulatory changes in the United States, another country or in the European Union. Our profitability and
revenue in a particular country could be affected by adverse changes in postal regulations, the business processes and practices of
individual posts, the decision of a post to enter into particular markets in direct competition with us, and the impact of any of these
changes on postal competitors that do not use our products or services. These changes could affect product specifications, service
offerings, customer behavior and the overall mailing industry.
Accelerated decline in use of physical mail
Changes in our customers’ communication behavior, including changes in communications technologies, could adversely impact our
revenue and profitability. Accelerated decline in physical mail could also result from government actions such as executive orders,
legislation or regulations that either mandate electronic substitution, prohibit certain types of mailings, increase the difficulty of using
information or materials in the mail, or impose higher taxes or fees on mailing or postal services. While we have introduced various
product and service offerings as alternatives to physical mail, we face competition from existing and emerging products and services
that offer alternative means of communication, such as email and electronic document transmission technologies. An accelerated
increase in the acceptance of electronic delivery technologies or other displacement of physical mail could adversely affect our
business.
Reduced confidence in the mail system
Unexpected events such as the transmission of biological or chemical agents, or acts of terrorism could have a negative effect on
customer confidence in a postal system and as a result adversely impact mail volume. An unexpected and significant interruption in
the use of the mail could have an adverse effect on our business.