Pitney Bowes 2009 Annual Report Download - page 94

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
76
Pitney Bowes Bank
The Pitney Bowes Bank (PBB), our wholly owned subsidiary, is a Utah-chartered Industrial Loan Company (ILC). At December 31,
2009, PBB had assets of $687 million and liabilities of $632 million. The bank’s assets consist of finance receivables, short and long-
term investments and cash. PBB’s key product offering, Purchase Power, is a revolving credit solution, which enables customers to
finance their postage costs when they refill their meter. PBB earns revenue through transaction fees, finance charges on outstanding
balances, and other fees for services. The bank’s liabilities consist primarily of PBB’s deposit solution, Reserve Account, which
provides value to large-volume mailers who prefer to prepay postage and earn interest on their deposits. PBB is regulated by the
FDIC and the Utah Department of Financial Institutions.
Leveraged Leases
Our investment in leveraged lease assets consists of the following:
December 31,
2009 2008
Rental receivables $ 1,747,811 $ 1,523,617
Unguaranteed residual values 13,399 11,522
Principal and interest on non-recourse loans (1,341,820) (1,173,789)
Unearned income (186,031) (159,429)
Investment in leveraged leases 233,359 201,921
Less: Deferred taxes related to leveraged leases (175,329) (149,262)
Net investment in leveraged leases $ 58,030 $ 52,659
The following is a summary of the components of income from leveraged leases:
December 31,
2009 2008 2007
Pre-tax leveraged lease income $ 918 $ 316 $ 4,270
Income tax effect 6,676 7,063 1,186
Income from leveraged leases $ 7,594 $ 7,379 $ 5,456
Income from leveraged leases was positively impacted by $2.8 million and $2.6 million in 2009 and 2008, respectively, and
negatively impacted by $0.2 million in 2007 due to changes in statutory tax rates.