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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
56
6. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of the following:
December 31,
2013 2012
Accounts payable $ 270,067 $ 362,938
Customer deposits 672,440 698,770
Employee related liabilities 332,072 356,188
Miscellaneous other 370,003 391,330
Accounts payable and accrued liabilities $ 1,644,582 $ 1,809,226
7. Debt
December 31,
2013 2012
Term loans $ 230,000 $ 230,000
3.875% notes due 2013 —375,000
4.875% notes due 2014 (1) —450,000
5.00% notes due 2015 (1) 274,879 400,000
4.75% notes due 2016 (1) 370,914 500,000
5.75% notes due 2017 500,000 500,000
5.60% notes due Mar 2018 250,000 250,000
4.75% notes due May 2018 350,000 350,000
6.25% notes due 2019 300,000 300,000
5.25% notes due 2022 (2) 110,000 110,000
5.25% notes due 2037 (3) 500,000 500,000
6.70% notes due 2043 (4) 425,000 —
Other (5) 35,502 52,375
Total debt 3,346,295 4,017,375
Current portion long-term debt —375,000
Long-term debt $ 3,346,295 $ 3,642,375
Term loans bear interest at the applicable London Interbank Offered Rate (LIBOR) plus 2.25% or Prime Rate plus 1.25%, at our option.
Interest is payable and resets quarterly and the loans mature in 2015 and 2016.
(1) During the first quarter 2013, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014 (2014
Notes), our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes
received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405
million of the Subject Notes were tendered. Subsequently, in the fourth quarter of 2013, we redeemed the remaining outstanding
2014 Notes that were scheduled to mature August 2014 through the exercise of a make-whole provision. In connection with the
Tender Offer and the early redemption of the 2014 Notes, we recognized an aggregate net loss of $33 million.
At December 31, 2012, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively
converted the fixed rate interest payments on the 2014 Notes into variable interest rates. In connection with the Tender Offer, we
unwound a portion of these interest rate swap agreements, and in connection with redemption of the remaining outstanding notes in
the fourth quarter of 2013, we unwound the remaining interest rate swap agreements. At December 31, 2013, we had no interest rate
swaps outstanding.
(2) These notes may be redeemed, at our option, in whole or in part, at any time on or after November 27, 2015 at par plus accrued
interest.