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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
67
Maturities of gross finance receivables at December 31, 2011 were as follows:
Sales-type Lease Receivables Loan Receivables
North
America International Total North
America International Total
2012 $ 737,813 $ 118,938 $ 856,751 $ 436,631 $ 40,937 $
477,568
2013 492,477 105,440 597,917 - - -
2014 299,965 92,832 392,797 - - -
2015 151,598 73,762 225,360 - - -
2016 44,487 60,666 105,153 - - -
Thereafter 1,313 8,463 9,776 - - -
Total $
1,727,653 $ 460,101 $
2,187,754 $ 436,631 $ 40,937 $
477,568
Activity in the allowance for credit losses for finance receivables for each of the three years ended December 31, 2011, 2010 and 2009
is as follows:
Allowance for Credit Losses
Sales-type Lease Receivables Loan Receivables
North
America International
North
America International Total
Balance January 1, 2009 $ 31,182 $ 12,232 $ 25,759 $ 2,617 $ 71,790
Amounts charged to expense 19,067 8,674 32,007 2,007 61,755
Accounts written off (19,244) (7,829) (31,927) (2,387) (61,387)
Balance December 31, 2009 31,005 13,077 25,839 2,237 72,158
Amounts charged to expense 13,211 6,719 20,046 2,024 42,000
Accounts written off (16,424) (6,478) (19,677) (2,149) (44,728)
Balance December 31, 2010 27,792 13,318 26,208 2,112 69,430
Amounts charged to expense 13,726 5,087 7,631 1,610 28,054
Accounts written off (12,857) (6,366) (13,567) (1,264) (34,054)
Balance December 31, 2011 $ 28,661 $ 12,039 $ 20,272 $ 2,458 $ 63,430
We maintain a program for U.S. borrowers in our North America loan portfolio who are experiencing financial difficulties, but are
able to make reduced payments over an extended period of time. Upon acceptance into the program, the borrower’s credit line is
closed, interest accrual is suspended, the borrower’s minimum required payment is reduced and the account is re-aged and classified
as current. There is generally no forgiveness of debt or reduction of balances owed. The loans in the program are considered to be
troubled debt restructurings because of the concessions granted to the borrower. At December 31, 2011 and 2010, loans in this
program had a balance of $7 million.
The allowance for credit losses for these modified loans is determined by the difference between cash flows expected to be received
from the borrower discounted at the original effective rate and the carrying value of the loan. The allowance for credit losses related
to such loans was $2 million and $1 million at December 31, 2011 and 2010, respectively, and is included in the balance of the
allowance for credit losses of North American loans in the table above. Management believes that the allowance for credit losses is
adequate for these loans and all other loans in the portfolio. Write-offs of loans in the program were $1 million in each of the years
ended December 31, 2011 and 2010, respectively.