Pitney Bowes 2009 Annual Report Download - page 71

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
53
6. Intangible Assets and Goodwill
The components of our purchased intangible assets are as follows:
December 31, 2009 December 31, 2008
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Customer relationships $ 428,888 $ (197,497) $ 231,391 $ 428,946 $ (160,396) $ 268,550
Supplier relationships 29,000 (13,292) 15,708 29,000 (10,392) 18,608
Mailing software
and technology 164,211 (103,388) 60,823 160,069 (84,016) 76,053
Trademarks
and trade names 35,855 (27,898) 7,957 34,302 (22,541) 11,761
Non-compete
agreements 7,753 (7,215) 538 6,577 (5,727) 850
$ 665,707 $ (349,290) $ 316,417 $ 658,894 $ (283,072) $ 375,822
Amortization expense for intangible assets was $69.1 million, $72.3 million and $65.0 million for the years ended December 31, 2009,
2008 and 2007, respectively. In 2008, we recorded impairment charges of $28.5 million 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, 2009 is as follows:
Year ended December 31, Amount
2010 $ 59,000
2011 52,000
2012 45,000
2013 41,000
2014 37,000
Thereafter 82,417
$ 316,417
During 2009, we recorded no additions to intangible assets. During 2008, we recorded additions to intangible assets of $18.6 million.
The components of these purchased intangible assets are as follows:
December 31, 2008
Amount Weighted
Average Life
Customer relationships $ 18,274 12 years
Non-compete agreements 284 3 years
$ 18,558 11 years