Pitney Bowes 2011 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2011 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 120

  • 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

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
47
4. Inventories
Inventories at December 31, 2011 and 2010 consisted of the following:
December 31,
2011 2010
Raw materials and work in process $ 63,216 $ 60,465
Supplies and service parts 68,600 65,878
Finished products 71,958 68,941
Inventory at FIFO cost 203,774 195,284
Excess of FIFO cost over LIFO cost (25,175) (26,317)
Total inventory, net $ 178,599 $ 168,967
5. Fixed Assets
Fixed assets at December 31, 2011 and 2010 consist of property, plant and equipment and rental equipment, primarily postage meters,
as follows:
December 31,
2011 2010
Land $ 23,852 $ 26,710
Buildings 335,625 361,463
Machinery and equipment 1,278,332 1,352,295
1,637,809 1,740,468
Accumulated depreciation (1,233,663) (1,313,967)
Property, plant and equipment, net $ 404,146 $ 426,501
Rental property and equipment $ 649,343 $ 710,374
Accumulated depreciation (390,632) (410,204)
Rental property and equipment, net $ 258,711 $ 300,170
Depreciation expense was $214 million, $243 million and $270 million for the years ended December 31, 2011, 2010, and 2009,
respectively. In 2011 and 2010, we recorded asset impairment charges of $13 million and $10 million, respectively, 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.