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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
51
3. Discontinued Operations
Discontinued operations include PBMS, IMS and our Nordic furniture business, which were sold during 2013 and DIS, which was sold
in 2014. Discontinued operations also include certain tax benefits related to our Capital Services business that was sold in 2006.
The following tables show selected financial information included in discontinued operations:
Year Ended December 31, 2014
PBMS IMS
Nordic
furniture
business DIS Total
Revenue $ — $ — $ — $ 19,858 $ 19,858
(Loss) income from operations $(245) $ 308 $ 509 $ 2,123 $ 2,695
Gain on sale 2,778 1,994 — 24,733 29,505
Income before taxes 2,533 2,302 509 26,856 32,200
Tax (benefit) provision (6,931) 851 141 18,184 12,245
Net income $ 9,464 $ 1,451 $ 368 $ 8,672 $ 19,955
Capital Services, net of tax 13,794
Income from discontinued operations $ 33,749
Year Ended December 31, 2013
PBMS IMS
Nordic
furniture
business DIS Total
Revenue $ 639,237 $ 23,036 $ 37,785 $ 78,066 $ 778,124
(Loss) income from operations $ (118,017)$ (3,057)$ (4,037) $ 19,223 $ (105,888)
Gain (loss) on sale 5,126 (2,717) 4,562 — 6,971
(Loss) income before taxes (112,891)(5,774) 525 19,223 (98,917)
Tax provision (benefit) 41,384 (1,064) 149 5,102 45,571
Net (loss) income $ (154,275)$ (4,710) $ 376 $ 14,121 $ (144,488)
Capital Services, net of tax (289)
Loss from discontinued operations $ (144,777)
Year Ended December 31, 2012
PBMS IMS
Nordic
furniture
business DIS Total
Revenue $ 920,958 $ 135,222 $ 67,994 $ 91,351 $ 1,215,525
Income (loss) from operations $ 67,458 $ (40,084) $ 2,839 $ 22,542 $ 52,755
Tax provision (benefit) 29,255 (15,003) 794 5,965 21,011
Net income (loss) $ 38,203 $ (25,081) $ 2,045 $ 16,577 $ 31,744
Capital Services, net of tax 34,312
Income from discontinued operations $ 66,056
The loss from discontinued operations in 2013 includes goodwill impairment charges of $101 million and asset impairment charges of
$15 million. As a result of lower than expected operating performance of our PBMS North America business due to the loss of certain
customer contracts, pricing pressure on contract renewals and a longer than originally anticipated sales cycle for some of our new growth
areas, future cash flows were estimated to be lower than originally projected. Given these factors, a goodwill impairment test was performed
and it was determined that the carrying value of goodwill exceeded its implied fair value. Accordingly, a goodwill impairment charge of