Pitney Bowes 2013 Annual Report Download - page 30

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19
Restructuring charges and asset impairments
In 2013, we initiated actions designed to enhance our responsiveness to changing market conditions, further streamline our business
operations, reduce our cost structure and create long-term flexibility to invest in growth. We anticipate that these primarily cash related
actions will result in restructuring charges in the range of $75 to $125 million, which will be recognized as specific initiatives are approved
and implemented. We anticipate annualized pre-tax benefits of $100 to $125 million, net of investments, from these actions, and expect
to reach this benefit run rate by 2015. These actions resulted in net restructuring charges of $60 million (including $2 million related to
discontinued operations). Also during 2013, we entered into an agreement to sell our corporate headquarters building and recorded a non-
cash asset impairment charge of $26 million. We expect to close on this sale by mid-year 2014.
In 2012, we implemented actions to streamline our business operations and reduce our cost structure that resulted in net restructuring
charges of $23 million (including $6 million related to discontinued operations).
In 2011, restructuring charges represent charges taken in connection with a series of strategic transformation initiatives announced in
2009. These initiatives were designed to transform and enhance the way we operated as a global company, enhance our responsiveness
to changing market conditions and create improved processes and systems and were implemented over a three year period through 2011.
Net restructuring charges were $135 million, including charges related to discontinued operations.
Other expense (income), net
Other expense, net for 2013 of $33 million consists of the costs associated with the early redemption of debt during the year. See Liquidity
and Capital Resources - Financings and Capitalization for a detailed discussion.
Other expense, net in 2012 includes losses of $6 million on a forward rate swap agreement, $2 million on the early redemption of debt
and $4 million on the sale of leveraged lease assets offset by income of $11 million from insurance proceeds received in connection with
the 2011 presort facility fire.
Other income, net in 2011 includes income of $27 million from insurance proceeds received in connection with the presort facility fire
offset by a loss of $7 million on the sale of leveraged lease assets.
Income taxes
See Note 8 to the Consolidated Financial Statements.
Discontinued operations
Discontinued operations include goodwill impairment charges of $101 million, $18 million and $130 million and asset impairment charges
of $15 million, $17 million and $17 million for the years ended December 31, 2013, 2012 and 2011, respectively. See Note 19 to the
Consolidated Financial Statements for further discussion.
Preferred stock dividends of subsidiaries attributable to noncontrolling interests
See Note 9 to the Consolidated Financial Statements.