Pitney Bowes 2013 Annual Report Download - page 60

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
49
2. Inventories
December 31,
2013 2012
Raw materials and work in process $ 33,920 $ 66,221
Supplies and service parts 48,165 72,551
Finished products 38,515 68,335
Inventory at FIFO cost 120,600 207,107
Excess of FIFO cost over LIFO cost (17,020)(27,429)
Total inventory, net $ 103,580 $ 179,678
3. Fixed Assets
December 31,
2013 2012
Land $ 6,797 $ 22,064
Buildings 176,200 349,061
Machinery and equipment 918,075 1,299,475
1,101,072 1,670,600
Accumulated depreciation (855,901)(1,285,223)
Property, plant and equipment, net $ 245,171 $ 385,377
Rental property and equipment $ 537,128 $ 580,243
Accumulated depreciation (310,982)(339,051)
Rental property and equipment, net $ 226,146 $ 241,192
Depreciation expense was $158 million, $177 million and $195 million for the years ended December 31, 2013, 2012 and 2011,
respectively.
During 2013, we entered into an agreement to sell our corporate headquarters building and certain surrounding parcels of land. We
recorded a non-cash impairment charge of $26 million to write-down the carrying value of the building to its fair value. The fair value
of the building was determined based on the estimated selling price less the costs to sell. The inputs used to determine the fair value were
classified as Level 3. The impairment charge was included as restructuring charges and asset impairments in the Consolidated Statements
of Income. We expect to close on the sale by mid-2014. At December 31, 2013, the carrying value of our corporate headquarters building
and surrounding land were classified as assets held for sale in the Consolidated Balance Sheets.