Pitney Bowes 2009 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2009 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 124

  • 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
  • 121
  • 122
  • 123
  • 124

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
73
terminations have occurred. The majority of the liability at December 31, 2009 is expected to be paid during the next twelve months
from cash generated from operations.
Pre-tax restructuring reserves at December 31, 2009 for the restructuring actions taken in connection with the 2009 program are
composed of the following:
2009 Program
Balance at
December 31,
2008 Expenses
Cash
payments
Non-cash
charges
Balance at
December 31,
2009
Severance and benefit costs $ - $ 55,836 $ (9,941) $ - $ 45,895
Asset impairments - 18 - (18) -
Other exit costs - 11,492 (4,685) - 6,807
Total $ - $ 67,346 $ (14,626) $ (18) $ 52,702
2007 Program
We announced a program in November 2007 to lower our cost structure, accelerate efforts to improve operational efficiencies, and
transition our product line. The program included charges primarily associated with older equipment that we had stopped selling upon
transition to the new generation of fully digital, networked, and remotely-downloadable equipment.
In 2009, we recorded a pre-tax adjustment to restructuring charges and asset impairments for $18.6 million due to lower than
anticipated charges associated with the program announced in November 2007.
In 2008, we recorded pre-tax restructuring charges and asset impairments of $200.3 million, the majority of which related to the
program announced in November 2007. These charges included severance and benefit costs of $118.2 million, asset impairment
charges related to older technology equipment of $28.5 million and other assets of $2.2 million. Other exit costs of $35.3 million
related primarily to lease termination fees, facility closing costs, contract cancellation costs and outplacement costs.
Additional asset impairments, unrelated to restructuring, were also recorded in 2008 and related to intangible assets of $16.0 million
principally due to a loss of a customer in one of our marketing consulting businesses and the ongoing shift in market conditions for the
litigation support vertical in our Management Services business.
As of December 31, 2009, 2,999 terminations have occurred under this program. The majority of the liability at December 31, 2009 is
expected to be paid during the next twelve months from cash generated from operations.
Pre-tax restructuring reserves at December 31, 2009 for the restructuring program announced in November 2007 are composed of the
following:
2007 Program
Balance at
December 31,
2008 Expenses
Cash
payments
Non-cash
charges
Balance at
December 31,
2009
Severance and benefit costs $ 108,431 $ (14,721) $ (78,691) $ - $ 15,019
Asset impairments - (3,879) - 3,879 -
Other exit costs 32,678 - (11,773) - 20,905
Total $ 141,109 $ (18,600) $ (90,464) $ 3,879 $ 35,924