Pitney Bowes 2014 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2014 Pitney Bowes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
80
17. Leases
We lease office facilities, sales and service offices, equipment and other properties under operating lease agreements with varying terms.
Certain leases require us to pay property taxes, insurance and routine maintenance and include renewal options and escalation clauses.
Rent expense was $55 million, $67 million and $68 million in 2014, 2013 and 2012, respectively. Future minimum lease payments under
non-cancelable operating leases at December 31, 2014 were as follows:
Years ending December 31,
2015 $ 47,496
2016 35,864
2017 26,306
2018 19,899
2019 14,313
Thereafter 67,726
Total minimum lease payments $ 211,604
18. Stockholders' Equity
Preferred and Preference Stock
We have two classes of preferred stock issued and outstanding: the 4% Preferred Stock (the Preferred Stock) and the $2.12 Preference
Stock (the Preference Stock). The Preferred Stock is entitled to cumulative dividends of $2 per year and can be converted into 24.24
shares of common stock, subject to adjustment, in certain events. The Preferred Stock is redeemable at our option at a price of $50 per
share, plus dividends accrued through the redemption date. We are authorized to issue 600,000 shares of Preferred Stock. At December 31,
2014 and 2013, there were 24 shares and 74 shares outstanding, respectively. There are no unpaid dividends in arrears.
The Preference Stock is entitled to cumulative dividends of $2.12 per year and can be converted into 16.53 shares of common stock,
subject to adjustment, in certain events. The Preference Stock is redeemable at our option at a price of $28 per share. We are authorized
to issue 5,000,000 shares of Preference Stock. At December 31, 2014 and 2013, there were 20,237 shares and 21,838 shares outstanding,
respectively. There are no unpaid dividends in arrears.
Common and Treasury Stock
The following table summarizes the changes in Common Stock and Treasury Stock:
Common Stock Treasury Stock
Balance at December 31, 2011 199,751,070 123,586,842
Issuance of common stock 1,118,089 (1,118,089)
Conversions to common stock 14,888 (14,888)
Balance at December 31, 2012 200,884,047 122,453,865
Issuance of common stock 1,163,668 (1,163,668)
Conversions to common stock 34,807 (34,807)
Balance at December 31, 2013 202,082,522 121,255,390
Repurchases of common stock (1,863,262) 1,863,262
Issuance of common stock 781,032 (781,032)
Conversions to common stock 27,672 (27,672)
Balance at December 31, 2014 201,027,964 122,309,948
At December 31, 2014, 37,568,025 shares were reserved for issuance under our stock plans, dividend reinvestment program and the
conversion of Preferred Stock and Preference Stock.