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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
49
4. Inventories
Inventories at December 31, 2010 and 2009 consisted of the following:
December 31,
2010 2009
Raw materials and work in process $ 46,664 $ 36,331
Supplies and service parts 63,991 69,506
Finished products 58,312 50,665
Total $ 168,967 $ 156,502
If all inventories valued at LIFO had been stated at current costs, inventories would have been $26.3 million and $25.8 million higher
than reported at December 31, 2010 and 2009, respectively.
5. Fixed Assets
Fixed assets at December 31, 2010 and 2009 consist of property, plant and equipment and rental equipment, primarily postage meters,
as follows:
December 31,
2010 2009
Land $ 26,710 $ 32,517
Buildings 361,463 391,627
Machinery and equipment 1,352,295 1,404,023
1,740,468 1,828,167
Accumulated depreciation (1,313,967) (1,313,263)
Property, plant and equipment, net $ 426,501 $ 514,904
Rental property and equipment $ 618,839 $ 728,537
Accumulated depreciation (318,669) (368,330)
Rental property and equipment, net $ 300,170 $ 360,207
Depreciation expense was $242.9 million, $269.8 million and $306.8 million for the years ended December 31, 2010, 2009, and 2008,
respectively. Rental equipment is primarily comprised of postage meters. In 2010, we recorded asset impairment charges of $9.8
million associated with a restructuring program and included these charges in restructuring charges and asset impairments in the
Consolidated Statements of Income. See Note 14 for further details.