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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
68
12. Restructuring Charges and Asset Impairments
The table below shows the activity in our restructuring reserves for the years ended December 31, 2015 and 2014:
Severance and
benefits costs
Other exit
costs Total
Balance at December 31, 2013 $ 58,558 $ 8,014 $ 66,572
Expenses, net 74,325 5,444 79,769
Cash payments (51,047)(5,115) (56,162)
Balance at December 31, 2014 81,836 8,343 90,179
Expenses, net 19,078 251 19,329
Cash payments (57,214)(4,872) (62,086)
Balance at December 31, 2015 $ 43,700 $ 3,722 $ 47,422
The majority of the remaining restructuring reserves are expected to be paid over the next 12-24 months. Due to certain international
labor laws and long-term lease agreements, some payments will extend beyond 24 months. We expect to fund these payments from cash
flows from operations.
Asset impairment
During 2015, we sold our world headquarters building for $39 million and recorded a loss on the sale of $5 million. The loss was recognized
in restructuring charges and asset impairments, net in the Consolidated Statements of Income.
13. Debt
December 31,
Interest rate 2015 2014
Commercial paper 1.1% $ 90,000 $—
Notes due March 2015 5.0% —274,879
Notes due January 2016 4.75% 370,914 370,914
Notes due September 2017 5.75% 385,109 385,109
Notes due March 2018 5.6% 250,000 250,000
Notes due May 2018 4.75% 350,000 350,000
Notes due March 2019 6.25% 300,000 300,000
Notes due November 2022 5.25% —110,000
Notes due March 2024 4.625% 500,000 500,000
Notes due January 2037 5.25% 115,041 115,041
Notes due March 2043 6.7% 425,000 425,000
Term loans Variable 150,000 130,000
Other debt 15,758 16,000
Principal amount 2,951,822 3,226,943
Less: unamortized discount 5,288 6,653
Plus: unamortized interest rate swap proceeds 22,463 31,716
Total debt 2,968,997 3,252,006
Less: current portion long-term debt 461,085 324,879
Long-term debt $ 2,507,912 $ 2,927,127