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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Pitney Bowes Inc | NYSE:PBI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.03 | -0.57% | 5.22 | 5.51 | 5.17 | 5.31 | 3,468,088 | 01:00:00 |
State of incorporation:
|
Delaware
|
|
I.R.S. Employer Identification No.
|
06-0495050
|
Address:
|
3001 Summer Street,
|
Stamford,
|
Connecticut
|
06926
|
|
|
Telephone Number:
|
(203)
|
356-5000
|
|
|
|
|
Title of Each Class
|
|
Trading Symbol(s)
|
|
Name of Each Exchange on Which Registered
|
Common Stock, $1 par value per share
|
|
PBI
|
|
New York Stock Exchange
|
6.7% Notes due 2043
|
|
PBI.PRB
|
|
New York Stock Exchange
|
Large accelerated filer
|
þ
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
Page Number
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
Condensed Consolidated Statements of Income (loss) for the Three Months Ended March 31, 2020 and 2019
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2020 and 2019
|
|
|
|
|
|
Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Revenue:
|
|
|
|
|
|
||
Business services
|
$
|
444,379
|
|
|
$
|
406,545
|
|
Support services
|
122,015
|
|
|
128,599
|
|
||
Financing
|
89,078
|
|
|
97,043
|
|
||
Equipment sales
|
76,273
|
|
|
89,787
|
|
||
Supplies
|
45,709
|
|
|
50,953
|
|
||
Rentals
|
18,814
|
|
|
22,157
|
|
||
Total revenue
|
796,268
|
|
|
795,084
|
|
||
Costs and expenses:
|
|
|
|
||||
Cost of business services
|
374,665
|
|
|
327,046
|
|
||
Cost of support services
|
39,760
|
|
|
41,847
|
|
||
Financing interest expense
|
12,489
|
|
|
11,364
|
|
||
Cost of equipment sales
|
57,359
|
|
|
63,665
|
|
||
Cost of supplies
|
12,240
|
|
|
13,550
|
|
||
Cost of rentals
|
6,378
|
|
|
9,715
|
|
||
Selling, general and administrative
|
248,633
|
|
|
261,669
|
|
||
Research and development
|
12,116
|
|
|
12,577
|
|
||
Restructuring charges
|
3,817
|
|
|
3,700
|
|
||
Goodwill impairment
|
198,169
|
|
|
—
|
|
||
Interest expense, net
|
25,883
|
|
|
27,602
|
|
||
Other components of net pension and postretirement income
|
(151
|
)
|
|
(638
|
)
|
||
Other expense, net
|
33,487
|
|
|
17,710
|
|
||
Total costs and expenses
|
1,024,845
|
|
|
789,807
|
|
||
(Loss) income from continuing operations before taxes
|
(228,577
|
)
|
|
5,277
|
|
||
(Benefit) provision for income taxes
|
(10,030
|
)
|
|
7,820
|
|
||
Loss from continuing operations
|
(218,547
|
)
|
|
(2,543
|
)
|
||
Income (loss) from discontinued operations, net of tax
|
10,064
|
|
|
(116
|
)
|
||
Net loss
|
$
|
(208,483
|
)
|
|
$
|
(2,659
|
)
|
Basic (loss) earnings per share (1):
|
|
|
|
||||
Continuing operations
|
$
|
(1.28
|
)
|
|
$
|
(0.01
|
)
|
Discontinued operations
|
0.06
|
|
|
—
|
|
||
Net loss
|
$
|
(1.22
|
)
|
|
$
|
(0.01
|
)
|
Diluted (loss) earnings per share (1):
|
|
|
|
||||
Continuing operations
|
$
|
(1.28
|
)
|
|
$
|
(0.01
|
)
|
Discontinued operations
|
0.06
|
|
|
—
|
|
||
Net loss
|
$
|
(1.22
|
)
|
|
$
|
(0.01
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net loss
|
$
|
(208,483
|
)
|
|
$
|
(2,659
|
)
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
||||
Foreign currency translation, net of tax of $(2,817) and $924, respectively
|
(27,735
|
)
|
|
21,368
|
|
||
Net unrealized (loss) gain on cash flow hedges, net of tax of $(58) and $56, respectively
|
(174
|
)
|
|
163
|
|
||
Net unrealized gain on investment securities, net of tax of $434 and $964, respectively
|
1,308
|
|
|
2,816
|
|
||
Amortization of pension and postretirement costs, net of tax benefits of $2,650 and $2,649, respectively
|
8,870
|
|
|
6,636
|
|
||
Other comprehensive (loss) income, net of tax
|
(17,731
|
)
|
|
30,983
|
|
||
Comprehensive (loss) income
|
$
|
(226,214
|
)
|
|
$
|
28,324
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
663,072
|
|
|
$
|
924,442
|
|
Short-term investments, reported at fair value
|
67,180
|
|
|
115,879
|
|
||
Accounts and other receivables (net of allowance of $29,444 and $17,830, respectively)
|
342,823
|
|
|
373,471
|
|
||
Short-term finance receivables (net of allowance of $23,104 and $12,556, respectively)
|
597,805
|
|
|
629,643
|
|
||
Inventories
|
71,848
|
|
|
68,251
|
|
||
Current income taxes
|
16,356
|
|
|
5,565
|
|
||
Other current assets and prepayments
|
111,104
|
|
|
101,601
|
|
||
Assets of discontinued operations
|
—
|
|
|
17,229
|
|
||
Total current assets
|
1,870,188
|
|
|
2,236,081
|
|
||
Property, plant and equipment, net
|
371,464
|
|
|
376,177
|
|
||
Rental property and equipment, net
|
40,264
|
|
|
41,225
|
|
||
Long-term finance receivables (net of allowance of $15,764 and $7,095 respectively)
|
601,547
|
|
|
625,487
|
|
||
Goodwill
|
1,125,035
|
|
|
1,324,179
|
|
||
Intangible assets, net
|
181,624
|
|
|
190,640
|
|
||
Operating lease assets
|
193,635
|
|
|
200,752
|
|
||
Noncurrent income taxes
|
73,186
|
|
|
71,903
|
|
||
Other assets (includes $280,083 and $232,938, respectively, reported at fair value)
|
436,487
|
|
|
400,456
|
|
||
Total assets
|
$
|
4,893,430
|
|
|
$
|
5,466,900
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
653,539
|
|
|
$
|
793,690
|
|
Customer deposits at Pitney Bowes Bank
|
590,230
|
|
|
591,118
|
|
||
Current operating lease liabilities
|
36,085
|
|
|
36,060
|
|
||
Current portion of long-term debt
|
62,952
|
|
|
20,108
|
|
||
Advance billings
|
96,641
|
|
|
101,920
|
|
||
Current income taxes
|
3,070
|
|
|
17,083
|
|
||
Liabilities of discontinued operations
|
—
|
|
|
9,713
|
|
||
Total current liabilities
|
1,442,517
|
|
|
1,569,692
|
|
||
Long-term debt
|
2,567,010
|
|
|
2,719,614
|
|
||
Deferred taxes on income
|
275,815
|
|
|
274,435
|
|
||
Tax uncertainties and other income tax liabilities
|
36,096
|
|
|
38,834
|
|
||
Noncurrent operating lease liabilities
|
171,079
|
|
|
177,711
|
|
||
Other noncurrent liabilities
|
371,483
|
|
|
400,518
|
|
||
Total liabilities
|
4,864,000
|
|
|
5,180,804
|
|
||
|
|
|
|
||||
Commitments and contingencies (See Note 14)
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued)
|
323,338
|
|
|
323,338
|
|
||
Additional paid-in capital
|
69,553
|
|
|
98,748
|
|
||
Retained earnings
|
5,200,024
|
|
|
5,438,930
|
|
||
Accumulated other comprehensive loss
|
(857,874
|
)
|
|
(840,143
|
)
|
||
Treasury stock, at cost (151,947,224 and 152,888,969 shares, respectively)
|
(4,705,611
|
)
|
|
(4,734,777
|
)
|
||
Total stockholders’ equity
|
29,430
|
|
|
286,096
|
|
||
Total liabilities and stockholders’ equity
|
$
|
4,893,430
|
|
|
$
|
5,466,900
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net loss
|
$
|
(208,483
|
)
|
|
$
|
(2,659
|
)
|
(Income) loss from discontinued operations, net of tax
|
(10,064
|
)
|
|
116
|
|
||
Restructuring payments
|
(6,047
|
)
|
|
(8,246
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
||
Restructuring charges
|
3,817
|
|
|
3,700
|
|
||
Loss on disposition of businesses
|
—
|
|
|
17,710
|
|
||
Loss on extinguishment of debt
|
36,987
|
|
|
—
|
|
||
Depreciation and amortization
|
40,719
|
|
|
36,885
|
|
||
Goodwill impairment
|
198,169
|
|
|
—
|
|
||
Stock-based compensation
|
1,521
|
|
|
6,784
|
|
||
Allowance for credit losses
|
15,926
|
|
|
10,655
|
|
||
Amortization of debt fees
|
2,300
|
|
|
2,456
|
|
||
Changes in operating assets and liabilities, net of acquisitions/divestitures:
|
|
|
|
|
|
||
Decrease in accounts receivable
|
7,182
|
|
|
29,947
|
|
||
Decrease in finance receivables
|
18,843
|
|
|
43,388
|
|
||
Increase in inventories
|
(4,815
|
)
|
|
(6,232
|
)
|
||
Increase in other current assets and prepayments
|
(7,969
|
)
|
|
(33,948
|
)
|
||
Decrease in accounts payable and accrued liabilities
|
(104,556
|
)
|
|
(14,986
|
)
|
||
Increase (decrease) in current and noncurrent income taxes
|
10,797
|
|
|
(2,365
|
)
|
||
(Decrease) increase in advance billings
|
(4,148
|
)
|
|
878
|
|
||
Other, net
|
(18,658
|
)
|
|
(15,612
|
)
|
||
Net cash (used in) provided by operating activities - continuing operations
|
(28,479
|
)
|
|
68,471
|
|
||
Net cash (used in) provided by operating activities - discontinued operations
|
(37,805
|
)
|
|
1,257
|
|
||
Net cash (used in) provided by operating activities
|
(66,284
|
)
|
|
69,728
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of available-for-sale securities
|
(67,312
|
)
|
|
—
|
|
||
Proceeds from sales/maturities of available-for-sale securities
|
24,102
|
|
|
31,404
|
|
||
Net activity from short-term and other investments
|
48,431
|
|
|
(1,778
|
)
|
||
Capital expenditures
|
(25,778
|
)
|
|
(27,694
|
)
|
||
Acquisitions, net of cash acquired
|
(1,281
|
)
|
|
(4,882
|
)
|
||
Change in customer deposits at Pitney Bowes Bank
|
(888
|
)
|
|
(23,036
|
)
|
||
Other investing activities
|
(230
|
)
|
|
(7,841
|
)
|
||
Net cash used in investing activities - continuing operations
|
(22,956
|
)
|
|
(33,827
|
)
|
||
Net cash used in investing activities - discontinued operations
|
(2,502
|
)
|
|
(1,060
|
)
|
||
Net cash used in investing activities
|
(25,458
|
)
|
|
(34,887
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Proceeds from the issuance of long-term debt
|
816,544
|
|
|
—
|
|
||
Principal payments of long-term debt
|
(932,600
|
)
|
|
(12,541
|
)
|
||
Premiums and fees paid to extinguish debt
|
(32,645
|
)
|
|
—
|
|
||
Dividends paid to stockholders
|
(8,523
|
)
|
|
(9,408
|
)
|
||
Common stock repurchases
|
—
|
|
|
(39,142
|
)
|
||
Other financing activities
|
(2,372
|
)
|
|
(2,901
|
)
|
||
Net cash used in financing activities
|
(159,596
|
)
|
|
(63,992
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(10,032
|
)
|
|
794
|
|
||
Change in cash and cash equivalents
|
(261,370
|
)
|
|
(28,357
|
)
|
||
Cash and cash equivalents at beginning of period
|
924,442
|
|
|
867,262
|
|
||
Cash and cash equivalents at end of period
|
$
|
663,072
|
|
|
$
|
838,905
|
|
|
|
|
|
||||
Cash interest paid
|
$
|
44,891
|
|
|
$
|
33,393
|
|
Cash income tax payments, net of refunds
|
$
|
13,270
|
|
|
$
|
10,071
|
|
•
|
The determination of our provision for credit losses is now impacted by changes in forecasted economic conditions (see Accounting Pronouncements Adopted in 2020 below). COVID-19 and its impact on global economies resulted in an increased probability of recessionary conditions, which impacted our current year credit loss provision by $11 million.
|
•
|
At December 31, 2019, the fair value of our Global Ecommerce business exceeded its carrying value by less than 20%. During the first quarter of 2020, our Global Ecommerce reporting unit experienced weaker than expected performance, in part due to the macroeconomic conditions resulting from COVID-19, and we recorded a non-cash, pre-tax goodwill impairment charge of $198 million. See Note 8 for additional information.
|
|
Balance at December 31, 2019
|
|
Cumulative effect of accounting change
|
|
Amounts charged to expense
|
|
Write-offs, recoveries and currency impact
|
|
Balance at
March 31, 2020
|
||||||||||
Allowance for credit losses
|
$
|
17,830
|
|
|
$
|
15,336
|
|
|
$
|
3,280
|
|
|
$
|
(7,002
|
)
|
|
$
|
29,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020
|
|||||||||||||||||
|
Global Ecommerce
|
Presort Services
|
SendTech Solutions
|
Revenue from products and services
|
Revenue from leasing transactions and financing
|
Total consolidated revenue
|
||||||||||||
Major products/service lines
|
|
|
|
|
|
|
||||||||||||
Business services
|
$
|
292,323
|
|
$
|
140,720
|
|
$
|
11,336
|
|
$
|
444,379
|
|
$
|
—
|
|
$
|
444,379
|
|
Support services
|
—
|
|
—
|
|
122,015
|
|
122,015
|
|
—
|
|
122,015
|
|
||||||
Financing
|
—
|
|
—
|
|
—
|
|
—
|
|
89,078
|
|
89,078
|
|
||||||
Equipment sales
|
—
|
|
—
|
|
17,130
|
|
17,130
|
|
59,143
|
|
76,273
|
|
||||||
Supplies
|
—
|
|
—
|
|
45,709
|
|
45,709
|
|
—
|
|
45,709
|
|
||||||
Rentals
|
—
|
|
—
|
|
—
|
|
—
|
|
18,814
|
|
18,814
|
|
||||||
Subtotal
|
292,323
|
|
140,720
|
|
196,190
|
|
629,233
|
|
$
|
167,035
|
|
$
|
796,268
|
|
||||
|
|
|
|
|
|
|
||||||||||||
Revenue from leasing transactions and financing
|
|
|
|
|
|
|
||||||||||||
Financing
|
—
|
|
—
|
|
89,078
|
|
89,078
|
|
|
|
||||||||
Equipment sales
|
—
|
|
—
|
|
59,143
|
|
59,143
|
|
|
|
||||||||
Rentals
|
—
|
|
—
|
|
18,814
|
|
18,814
|
|
|
|
||||||||
Total revenue
|
$
|
292,323
|
|
$
|
140,720
|
|
$
|
363,225
|
|
$
|
796,268
|
|
|
|
||||
|
|
|
|
|
|
|
||||||||||||
Timing of revenue recognition from products and services
|
|
|
|
|
||||||||||||||
Products/services transferred at a point in time
|
$
|
—
|
|
$
|
—
|
|
$
|
78,374
|
|
$
|
78,374
|
|
|
|
||||
Products/services transferred over time
|
292,323
|
|
140,720
|
|
117,816
|
|
550,859
|
|
|
|
||||||||
Total
|
$
|
292,323
|
|
$
|
140,720
|
|
$
|
196,190
|
|
$
|
629,233
|
|
|
|
|
Three Months Ended March 31, 2019
|
|||||||||||||||||
|
Global Ecommerce
|
Presort Services
|
SendTech Solutions
|
Revenue from products and services
|
Revenue from leasing transactions and financing
|
Total consolidated revenue
|
||||||||||||
Major products/service lines
|
|
|
|
|
|
|
||||||||||||
Business services
|
$
|
266,254
|
|
$
|
134,847
|
|
$
|
5,444
|
|
$
|
406,545
|
|
$
|
—
|
|
$
|
406,545
|
|
Support services
|
—
|
|
—
|
|
128,599
|
|
128,599
|
|
—
|
|
128,599
|
|
||||||
Financing
|
—
|
|
—
|
|
—
|
|
—
|
|
97,043
|
|
97,043
|
|
||||||
Equipment sales
|
—
|
|
—
|
|
21,293
|
|
21,293
|
|
68,494
|
|
89,787
|
|
||||||
Supplies
|
—
|
|
—
|
|
50,953
|
|
50,953
|
|
—
|
|
50,953
|
|
||||||
Rentals
|
—
|
|
—
|
|
—
|
|
—
|
|
22,157
|
|
22,157
|
|
||||||
Subtotal
|
266,254
|
|
134,847
|
|
206,289
|
|
607,390
|
|
$
|
187,694
|
|
$
|
795,084
|
|
||||
|
|
|
|
|
|
|
||||||||||||
Revenue from leasing transactions and financing
|
|
|
|
|
|
|
||||||||||||
Financing
|
—
|
|
—
|
|
97,043
|
|
97,043
|
|
|
|
||||||||
Equipment sales
|
—
|
|
—
|
|
68,494
|
|
68,494
|
|
|
|
||||||||
Rentals
|
—
|
|
—
|
|
22,157
|
|
22,157
|
|
|
|
||||||||
Total revenue
|
$
|
266,254
|
|
$
|
134,847
|
|
$
|
393,983
|
|
$
|
795,084
|
|
|
|
||||
|
|
|
|
|
|
|
||||||||||||
Timing of revenue recognition from products and services
|
|
|
|
|
||||||||||||||
Products/services transferred at a point in time
|
$
|
—
|
|
$
|
—
|
|
$
|
86,877
|
|
$
|
86,877
|
|
|
|
||||
Products/services transferred over time
|
266,254
|
|
134,847
|
|
119,412
|
|
520,513
|
|
|
|
||||||||
Total
|
$
|
266,254
|
|
$
|
134,847
|
|
$
|
206,289
|
|
$
|
607,390
|
|
|
|
|
Balance sheet location
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Increase/ (decrease)
|
||||||
Advance billings, current
|
Advance billings
|
|
$
|
88,038
|
|
|
$
|
92,464
|
|
|
$
|
(4,426
|
)
|
Advance billings, noncurrent
|
Other noncurrent liabilities
|
|
$
|
1,192
|
|
|
$
|
1,245
|
|
|
$
|
(53
|
)
|
|
|
Remainder of 2020
|
|
2021
|
|
2022-2025
|
|
Total
|
||||||||
SendTech Solutions
|
|
$
|
219,155
|
|
|
$
|
238,137
|
|
|
$
|
306,647
|
|
|
$
|
763,939
|
|
|
Revenue
|
||||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Global Ecommerce
|
$
|
292,323
|
|
|
$
|
266,254
|
|
Presort Services
|
140,720
|
|
|
134,847
|
|
||
Commerce Services
|
433,043
|
|
|
401,101
|
|
||
SendTech Solutions
|
363,225
|
|
|
393,983
|
|
||
Total revenue
|
$
|
796,268
|
|
|
$
|
795,084
|
|
|
EBIT
|
||||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Global Ecommerce
|
$
|
(29,475
|
)
|
|
$
|
(14,600
|
)
|
Presort Services
|
15,695
|
|
|
15,066
|
|
||
Commerce Services
|
(13,780
|
)
|
|
466
|
|
||
SendTech Solutions
|
106,562
|
|
|
122,403
|
|
||
Total segment EBIT
|
92,782
|
|
|
122,869
|
|
||
Reconciliation of Segment EBIT to net loss:
|
|
|
|
|
|
||
Unallocated corporate expenses
|
(43,722
|
)
|
|
(56,958
|
)
|
||
Restructuring charges
|
(3,817
|
)
|
|
(3,700
|
)
|
||
Interest expense, net
|
(38,372
|
)
|
|
(38,966
|
)
|
||
Goodwill impairment
|
(198,169
|
)
|
|
—
|
|
||
Loss on extinguishment of debt
|
(36,987
|
)
|
|
—
|
|
||
Loss on Market Exits
|
—
|
|
|
(17,710
|
)
|
||
Transaction costs
|
(292
|
)
|
|
(258
|
)
|
||
Benefit (provision) for income taxes
|
10,030
|
|
|
(7,820
|
)
|
||
Loss from continuing operations
|
(218,547
|
)
|
|
(2,543
|
)
|
||
Income (loss) from discontinued operations, net of tax
|
10,064
|
|
|
(116
|
)
|
||
Net loss
|
$
|
(208,483
|
)
|
|
$
|
(2,659
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||
|
Software Solutions
|
|
Production Mail
|
|
Total
|
|
Software Solutions
|
|
Production Mail
|
|
Total
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,318
|
|
|
$
|
750
|
|
|
$
|
74,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,594
|
|
|
$
|
(663
|
)
|
|
$
|
931
|
|
Gain (loss) on sale (including transaction costs)
|
10,285
|
|
|
(412
|
)
|
|
9,873
|
|
|
—
|
|
|
(667
|
)
|
|
(667
|
)
|
||||||
Income (loss) from discontinued operations before taxes
|
$
|
10,285
|
|
|
$
|
(412
|
)
|
|
9,873
|
|
|
$
|
1,594
|
|
|
$
|
(1,330
|
)
|
|
264
|
|
||
Tax (benefit) provision
|
|
|
|
|
(191
|
)
|
|
|
|
|
|
380
|
|
||||||||||
Income (loss) from discontinued operations, net of tax
|
|
|
|
|
$
|
10,064
|
|
|
|
|
|
|
$
|
(116
|
)
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
|
|
||
Loss from continuing operations
|
$
|
(218,547
|
)
|
|
$
|
(2,543
|
)
|
Income (loss) from discontinued operations, net of tax
|
10,064
|
|
|
(116
|
)
|
||
Net loss (numerator for diluted EPS)
|
(208,483
|
)
|
|
(2,659
|
)
|
||
Less: Preference stock dividend
|
—
|
|
|
8
|
|
||
Loss attributable to common stockholders (numerator for basic EPS)
|
$
|
(208,483
|
)
|
|
$
|
(2,667
|
)
|
Denominator:
|
|
|
|
|
|
||
Weighted-average shares used in basic EPS
|
170,912
|
|
|
185,971
|
|
||
Dilutive effect of common stock equivalents (1)
|
—
|
|
|
—
|
|
||
Weighted-average shares used in diluted EPS
|
170,912
|
|
|
185,971
|
|
||
Basic (loss) earnings per share (2):
|
|
|
|
|
|
||
Continuing operations
|
$
|
(1.28
|
)
|
|
$
|
(0.01
|
)
|
Discontinued operations
|
0.06
|
|
|
—
|
|
||
Net loss
|
$
|
(1.22
|
)
|
|
$
|
(0.01
|
)
|
Diluted (loss) earnings per share (2):
|
|
|
|
||||
Continuing operations
|
$
|
(1.28
|
)
|
|
$
|
(0.01
|
)
|
Discontinued operations
|
0.06
|
|
|
—
|
|
||
Net loss
|
$
|
(1.22
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
||||
Anti-dilutive options excluded from diluted earnings per share:
|
17,617
|
|
|
14,989
|
|
(1)
|
Dilutive effect of common stock equivalents for the three months ended March 31, 2020 and 2019 was 1,554 and 1,618, respectively; however, are not included in the calculation of diluted earnings per share as the Company is reporting a net loss for both periods.
|
(2)
|
The sum of the earnings per share amounts may not equal the totals due to rounding.
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Raw materials
|
$
|
16,631
|
|
|
$
|
13,514
|
|
Supplies and service parts
|
24,133
|
|
|
21,840
|
|
||
Finished products
|
35,156
|
|
|
36,969
|
|
||
Inventory at FIFO cost
|
75,920
|
|
|
72,323
|
|
||
Excess of FIFO cost over LIFO cost
|
(4,072
|
)
|
|
(4,072
|
)
|
||
Total inventory, net
|
$
|
71,848
|
|
|
$
|
68,251
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
North America
|
|
International
|
|
Total
|
|
North America
|
|
International
|
|
Total
|
||||||||||||
Sales-type lease receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross finance receivables
|
$
|
1,031,493
|
|
|
$
|
200,053
|
|
|
$
|
1,231,546
|
|
|
$
|
1,055,852
|
|
|
$
|
224,202
|
|
|
$
|
1,280,054
|
|
Unguaranteed residual values
|
40,345
|
|
|
11,301
|
|
|
51,646
|
|
|
41,934
|
|
|
11,789
|
|
|
53,723
|
|
||||||
Unearned income
|
(301,136
|
)
|
|
(61,379
|
)
|
|
(362,515
|
)
|
|
(319,281
|
)
|
|
(65,888
|
)
|
|
(385,169
|
)
|
||||||
Allowance for credit losses
|
(25,933
|
)
|
|
(4,883
|
)
|
|
(30,816
|
)
|
|
(10,920
|
)
|
|
(2,085
|
)
|
|
(13,005
|
)
|
||||||
Net investment in sales-type lease receivables
|
744,769
|
|
|
145,092
|
|
|
889,861
|
|
|
767,585
|
|
|
168,018
|
|
|
935,603
|
|
||||||
Loan receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loan receivables
|
292,699
|
|
|
24,844
|
|
|
317,543
|
|
|
298,247
|
|
|
27,926
|
|
|
326,173
|
|
||||||
Allowance for credit losses
|
(7,422
|
)
|
|
(630
|
)
|
|
(8,052
|
)
|
|
(5,906
|
)
|
|
(740
|
)
|
|
(6,646
|
)
|
||||||
Net investment in loan receivables
|
285,277
|
|
|
24,214
|
|
|
309,491
|
|
|
292,341
|
|
|
27,186
|
|
|
319,527
|
|
||||||
Net investment in finance receivables
|
$
|
1,030,046
|
|
|
$
|
169,306
|
|
|
$
|
1,199,352
|
|
|
$
|
1,059,926
|
|
|
$
|
195,204
|
|
|
$
|
1,255,130
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
||||||||||||||||||||
|
North America
|
|
International
|
|
Total
|
|
North America
|
|
International
|
|
Total
|
||||||||||||
Remaining for year ending December 31, 2020
|
$
|
321,928
|
|
|
$
|
58,207
|
|
|
$
|
380,135
|
|
|
$
|
256,712
|
|
|
$
|
24,844
|
|
|
$
|
281,556
|
|
Year ending December 31, 2021
|
320,823
|
|
|
64,327
|
|
|
385,150
|
|
|
11,660
|
|
|
—
|
|
|
11,660
|
|
||||||
Year ending December 31, 2022
|
217,470
|
|
|
43,949
|
|
|
261,419
|
|
|
9,999
|
|
|
—
|
|
|
9,999
|
|
||||||
Year ending December 31, 2023
|
120,443
|
|
|
23,495
|
|
|
143,938
|
|
|
5,222
|
|
|
—
|
|
|
5,222
|
|
||||||
Year ending December 31, 2024
|
46,447
|
|
|
8,389
|
|
|
54,836
|
|
|
6,603
|
|
|
—
|
|
|
6,603
|
|
||||||
Thereafter
|
4,382
|
|
|
1,686
|
|
|
6,068
|
|
|
2,503
|
|
|
—
|
|
|
2,503
|
|
||||||
Total
|
$
|
1,031,493
|
|
|
$
|
200,053
|
|
|
$
|
1,231,546
|
|
|
$
|
292,699
|
|
|
$
|
24,844
|
|
|
$
|
317,543
|
|
|
March 31, 2020
|
||||||||||||||||||
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
Past due amounts 0 - 90 days
|
$
|
1,008,879
|
|
|
$
|
197,681
|
|
|
$
|
288,180
|
|
|
$
|
24,562
|
|
|
$
|
1,519,302
|
|
Past due amounts > 90 days
|
22,614
|
|
|
2,372
|
|
|
4,519
|
|
|
282
|
|
|
29,787
|
|
|||||
Total
|
$
|
1,031,493
|
|
|
$
|
200,053
|
|
|
$
|
292,699
|
|
|
$
|
24,844
|
|
|
$
|
1,549,089
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
4,856
|
|
|
$
|
1,309
|
|
|
$
|
2,538
|
|
|
$
|
125
|
|
|
$
|
8,828
|
|
Not accruing interest
|
17,758
|
|
|
1,063
|
|
|
1,981
|
|
|
157
|
|
|
20,959
|
|
|||||
Total
|
$
|
22,614
|
|
|
$
|
2,372
|
|
|
$
|
4,519
|
|
|
$
|
282
|
|
|
$
|
29,787
|
|
|
December 31, 2019
|
||||||||||||||||||
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
Past due amounts 0 - 90 days
|
$
|
1,032,912
|
|
|
$
|
220,819
|
|
|
$
|
294,001
|
|
|
$
|
27,697
|
|
|
$
|
1,575,429
|
|
Past due amounts > 90 days
|
22,940
|
|
|
3,383
|
|
|
4,246
|
|
|
229
|
|
|
30,798
|
|
|||||
Total
|
$
|
1,055,852
|
|
|
$
|
224,202
|
|
|
$
|
298,247
|
|
|
$
|
27,926
|
|
|
$
|
1,606,227
|
|
Past due amounts > 90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Still accruing interest
|
$
|
4,835
|
|
|
$
|
1,081
|
|
|
$
|
2,094
|
|
|
$
|
121
|
|
|
$
|
8,131
|
|
Not accruing interest
|
18,105
|
|
|
2,302
|
|
|
2,152
|
|
|
108
|
|
|
22,667
|
|
|||||
Total
|
$
|
22,940
|
|
|
$
|
3,383
|
|
|
$
|
4,246
|
|
|
$
|
229
|
|
|
$
|
30,798
|
|
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
Balance at December 31, 2019
|
$
|
10,920
|
|
|
$
|
2,085
|
|
|
$
|
5,906
|
|
|
$
|
740
|
|
|
$
|
19,651
|
|
Cumulative effect of accounting change
|
9,271
|
|
|
1,750
|
|
|
(1,116
|
)
|
|
(402
|
)
|
|
9,503
|
|
|||||
Amounts charged to expense
|
6,892
|
|
|
1,345
|
|
|
4,006
|
|
|
403
|
|
|
12,646
|
|
|||||
Write-offs
|
(1,618
|
)
|
|
(248
|
)
|
|
(2,058
|
)
|
|
(104
|
)
|
|
(4,028
|
)
|
|||||
Recoveries
|
592
|
|
|
31
|
|
|
691
|
|
|
—
|
|
|
1,314
|
|
|||||
Other
|
(124
|
)
|
|
(80
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
(218
|
)
|
|||||
Balance at March 31, 2020
|
$
|
25,933
|
|
|
$
|
4,883
|
|
|
$
|
7,422
|
|
|
$
|
630
|
|
|
$
|
38,868
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Sales-type Lease Receivables
|
|
Loan Receivables
|
|
|
||||||||||||||
|
North
America
|
|
International
|
|
North
America
|
|
International
|
|
Total
|
||||||||||
Balance at January 1, 2019
|
$
|
10,253
|
|
|
$
|
2,355
|
|
|
$
|
6,777
|
|
|
$
|
837
|
|
|
$
|
20,222
|
|
Amounts charged to expense
|
3,399
|
|
|
231
|
|
|
957
|
|
|
20
|
|
|
4,607
|
|
|||||
Write-offs
|
(878
|
)
|
|
(245
|
)
|
|
(2,280
|
)
|
|
(169
|
)
|
|
(3,572
|
)
|
|||||
Recoveries
|
347
|
|
|
40
|
|
|
942
|
|
|
—
|
|
|
1,329
|
|
|||||
Other
|
15
|
|
|
(497
|
)
|
|
3
|
|
|
44
|
|
|
(435
|
)
|
|||||
Balance at March 31, 2019
|
$
|
13,136
|
|
|
$
|
1,884
|
|
|
$
|
6,399
|
|
|
$
|
732
|
|
|
$
|
22,151
|
|
•
|
Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers.
|
•
|
Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers.
|
•
|
High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers.
|
|
Sales Type Lease Receivables
|
|
Loan Receivables
|
|
Total
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
Low
|
$
|
80,794
|
|
|
$
|
278,796
|
|
|
$
|
225,328
|
|
|
$
|
141,499
|
|
|
$
|
62,994
|
|
|
$
|
28,603
|
|
|
$
|
216,717
|
|
|
$
|
1,034,731
|
|
Medium
|
13,337
|
|
|
52,267
|
|
|
45,057
|
|
|
29,346
|
|
|
12,816
|
|
|
7,091
|
|
|
58,152
|
|
|
218,066
|
|
||||||||
High
|
1,651
|
|
|
5,961
|
|
|
5,516
|
|
|
3,610
|
|
|
2,478
|
|
|
833
|
|
|
5,158
|
|
|
25,207
|
|
||||||||
Not Scored
|
23,483
|
|
|
86,463
|
|
|
60,505
|
|
|
37,683
|
|
|
20,153
|
|
|
5,282
|
|
|
37,516
|
|
|
271,085
|
|
||||||||
Total
|
$
|
119,265
|
|
|
$
|
423,487
|
|
|
$
|
336,406
|
|
|
$
|
212,138
|
|
|
$
|
98,441
|
|
|
$
|
41,809
|
|
|
$
|
317,543
|
|
|
$
|
1,549,089
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Profit recognized at commencement (1)
|
$
|
28,920
|
|
|
$
|
36,360
|
|
Interest income
|
34,260
|
|
|
59,478
|
|
||
Total lease income from sales-type leases
|
$
|
63,180
|
|
|
$
|
95,838
|
|
Remaining for year ending December 31, 2020
|
$
|
28,961
|
|
Year ending December 31, 2021
|
24,361
|
|
|
Year ending December 31, 2022
|
9,159
|
|
|
Year ending December 31, 2023
|
4,262
|
|
|
Year ending December 31, 2024
|
1,165
|
|
|
Thereafter
|
60
|
|
|
Total
|
$
|
67,968
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Customer relationships
|
$
|
265,630
|
|
|
$
|
(95,136
|
)
|
|
$
|
170,494
|
|
|
$
|
265,665
|
|
|
$
|
(88,550
|
)
|
|
$
|
177,115
|
|
Software & technology
|
31,600
|
|
|
(21,576
|
)
|
|
10,024
|
|
|
31,600
|
|
|
(19,999
|
)
|
|
11,601
|
|
||||||
Trademarks & other
|
13,324
|
|
|
(12,218
|
)
|
|
1,106
|
|
|
13,324
|
|
|
(11,400
|
)
|
|
1,924
|
|
||||||
Total intangible assets
|
$
|
310,554
|
|
|
$
|
(128,930
|
)
|
|
$
|
181,624
|
|
|
$
|
310,589
|
|
|
$
|
(119,949
|
)
|
|
$
|
190,640
|
|
Remaining for year ending December 31, 2020
|
$
|
24,412
|
|
Year ending December 31, 2021
|
29,972
|
|
|
Year ending December 31, 2022
|
29,026
|
|
|
Year ending December 31, 2023
|
26,188
|
|
|
Year ending December 31, 2024
|
26,188
|
|
|
Thereafter
|
45,838
|
|
|
Total
|
$
|
181,624
|
|
|
December 31, 2019
|
|
Impairment
|
|
Acquisition
|
|
Currency impact
|
|
March 31,
2020 |
||||||||||
Global Ecommerce
|
$
|
609,431
|
|
|
$
|
(198,169
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
411,262
|
|
Presort Services
|
212,529
|
|
|
—
|
|
|
4,338
|
|
|
—
|
|
|
216,867
|
|
|||||
Commerce Services
|
821,960
|
|
|
(198,169
|
)
|
|
4,338
|
|
|
—
|
|
|
628,129
|
|
|||||
SendTech Solutions
|
502,219
|
|
|
—
|
|
|
—
|
|
|
(5,313
|
)
|
|
496,906
|
|
|||||
Total goodwill
|
$
|
1,324,179
|
|
|
$
|
(198,169
|
)
|
|
$
|
4,338
|
|
|
$
|
(5,313
|
)
|
|
$
|
1,125,035
|
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets and liabilities.
|
Level 2 –
|
Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3 –
|
Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability.
|
|
March 31, 2020
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds
|
$
|
148,561
|
|
|
$
|
111,903
|
|
|
$
|
—
|
|
|
$
|
260,464
|
|
Equity securities
|
—
|
|
|
17,044
|
|
|
—
|
|
|
17,044
|
|
||||
Commingled fixed income securities
|
1,691
|
|
|
18,688
|
|
|
—
|
|
|
20,379
|
|
||||
Government and related securities
|
60,388
|
|
|
25,454
|
|
|
—
|
|
|
85,842
|
|
||||
Corporate debt securities
|
—
|
|
|
72,012
|
|
|
—
|
|
|
72,012
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
107,457
|
|
|
—
|
|
|
107,457
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
|
6,071
|
|
|
—
|
|
|
6,071
|
|
||||
Total assets
|
$
|
210,640
|
|
|
$
|
358,629
|
|
|
$
|
—
|
|
|
$
|
569,269
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(3,758
|
)
|
|
$
|
—
|
|
|
$
|
(3,758
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(3,758
|
)
|
|
$
|
—
|
|
|
$
|
(3,758
|
)
|
|
December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds
|
$
|
161,441
|
|
|
$
|
240,364
|
|
|
$
|
—
|
|
|
$
|
401,805
|
|
Equity securities
|
—
|
|
|
21,979
|
|
|
—
|
|
|
21,979
|
|
||||
Commingled fixed income securities
|
1,656
|
|
|
18,404
|
|
|
—
|
|
|
20,060
|
|
||||
Government and related securities
|
64,572
|
|
|
17,478
|
|
|
—
|
|
|
82,050
|
|
||||
Corporate debt securities
|
—
|
|
|
72,149
|
|
|
—
|
|
|
72,149
|
|
||||
Mortgage-backed / asset-backed securities
|
—
|
|
|
66,339
|
|
|
—
|
|
|
66,339
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
—
|
|
|
3,256
|
|
|
—
|
|
|
3,256
|
|
||||
Total assets
|
$
|
227,669
|
|
|
$
|
439,969
|
|
|
$
|
—
|
|
|
$
|
667,638
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(1,402
|
)
|
|
$
|
—
|
|
|
$
|
(1,402
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(1,402
|
)
|
|
$
|
—
|
|
|
$
|
(1,402
|
)
|
•
|
Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.
|
•
|
Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2.
|
•
|
Commingled Fixed Income Securities: Commingled fixed income securities are comprised of mutual funds that invest in a variety of fixed income securities, including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value is based on the value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These mutual funds are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.
|
•
|
Government and Related Securities: Debt securities are classified as Level 1 where active, high volume trades for identical securities exist. Valuation adjustments are not applied to these securities. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.
|
•
|
Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. These securities are classified as Level 2.
|
•
|
Mortgage-Backed Securities / Asset-Backed Securities: These securities are valued based on external pricing indices or external price/spread data. These securities are classified as Level 2.
|
|
March 31, 2020
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
Government and related securities
|
$
|
81,698
|
|
|
$
|
4,462
|
|
|
$
|
(360
|
)
|
|
$
|
85,800
|
|
Corporate debt securities
|
73,338
|
|
|
1,270
|
|
|
(2,596
|
)
|
|
72,012
|
|
||||
Commingled fixed income securities
|
1,684
|
|
|
7
|
|
|
—
|
|
|
1,691
|
|
||||
Mortgage-backed / asset-backed securities
|
104,968
|
|
|
2,822
|
|
|
(333
|
)
|
|
107,457
|
|
||||
Total
|
$
|
261,688
|
|
|
$
|
8,561
|
|
|
$
|
(3,289
|
)
|
|
$
|
266,960
|
|
|
December 31, 2019
|
||||||||||||||
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair value
|
||||||||
Government and related securities
|
$
|
80,732
|
|
|
$
|
1,358
|
|
|
$
|
(114
|
)
|
|
$
|
81,976
|
|
Corporate debt securities
|
70,426
|
|
|
2,009
|
|
|
(286
|
)
|
|
72,149
|
|
||||
Commingled fixed income securities
|
1,675
|
|
|
—
|
|
|
(19
|
)
|
|
1,656
|
|
||||
Mortgage-backed / asset-backed securities
|
65,679
|
|
|
960
|
|
|
(300
|
)
|
|
66,339
|
|
||||
Total
|
$
|
218,512
|
|
|
$
|
4,327
|
|
|
$
|
(719
|
)
|
|
$
|
222,120
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Fair Value
|
|
Gross unrealized losses
|
|
Fair Value
|
|
Gross unrealized losses
|
||||||||
Less than 12 continuous months
|
$
|
59,815
|
|
|
$
|
3,104
|
|
|
$
|
52,521
|
|
|
$
|
583
|
|
Greater than 12 continuous months
|
7,906
|
|
|
185
|
|
|
9,227
|
|
|
136
|
|
||||
Total
|
$
|
67,721
|
|
|
$
|
3,289
|
|
|
$
|
61,748
|
|
|
$
|
719
|
|
|
Amortized cost
|
|
Estimated fair value
|
||||
Within 1 year
|
$
|
26,602
|
|
|
$
|
26,831
|
|
After 1 year through 5 years
|
49,024
|
|
|
50,100
|
|
||
After 5 years through 10 years
|
61,991
|
|
|
61,909
|
|
||
After 10 years
|
124,071
|
|
|
128,120
|
|
||
Total
|
$
|
261,688
|
|
|
$
|
266,960
|
|
Designation of Derivatives
|
|
Balance Sheet Location
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Derivatives designated as
hedging instruments
|
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
Other current assets and prepayments
|
|
$
|
77
|
|
|
$
|
207
|
|
|
|
Accounts payable and accrued liabilities
|
|
(157
|
)
|
|
(56
|
)
|
||
|
|
|
|
|
|
|
||||
Derivatives not designated as
hedging instruments
|
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
Other current assets and prepayments
|
|
5,994
|
|
|
3,049
|
|
||
|
|
Accounts payable and accrued liabilities
|
|
(3,601
|
)
|
|
(1,346
|
)
|
||
|
|
|
|
|
|
|
||||
|
|
Total derivative assets
|
|
$
|
6,071
|
|
|
$
|
3,256
|
|
|
|
Total derivative liabilities
|
|
(3,758
|
)
|
|
(1,402
|
)
|
||
|
|
Total net derivative asset
|
|
$
|
2,313
|
|
|
$
|
1,854
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||
|
|
Derivative Gain (Loss)
Recognized in AOCI
(Effective Portion)
|
|
Location of Gain (Loss)
(Effective Portion)
|
|
Gain (Loss) Reclassified
from AOCI to Earnings
(Effective Portion)
|
||||||||||||
Derivative Instrument
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|||||||||
Foreign exchange contracts
|
|
$
|
(160
|
)
|
|
$
|
345
|
|
|
Revenue
|
|
$
|
61
|
|
|
$
|
111
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
10
|
|
|
16
|
|
||||
|
|
|
|
|
|
|
|
|
|
$
|
71
|
|
|
$
|
127
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
|
|
Derivative Gain (Loss) Recognized in Earnings
|
||||||
Derivatives Instrument
|
|
Location of Derivative Gain (Loss)
|
|
2020
|
|
2019
|
||||
Foreign exchange contracts
|
|
Selling, general and administrative expense
|
|
$
|
(4,867
|
)
|
|
$
|
5,269
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Carrying value
|
$
|
2,629,962
|
|
|
$
|
2,739,722
|
|
Fair value
|
$
|
1,967,357
|
|
|
$
|
2,572,794
|
|
|
Severance and benefits costs
|
|
Other exit
costs
|
|
Total
|
||||||
Balance at January 1, 2020
|
$
|
11,937
|
|
|
$
|
69
|
|
|
$
|
12,006
|
|
Expenses, net
|
2,979
|
|
|
75
|
|
|
3,054
|
|
|||
Cash payments
|
(5,933
|
)
|
|
(114
|
)
|
|
(6,047
|
)
|
|||
Balance at March 31, 2020
|
$
|
8,983
|
|
|
$
|
30
|
|
|
$
|
9,013
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2019
|
$
|
13,641
|
|
|
$
|
1,808
|
|
|
$
|
15,449
|
|
Expenses, net
|
3,432
|
|
|
268
|
|
|
3,700
|
|
|||
Cash payments
|
(7,293
|
)
|
|
(953
|
)
|
|
(8,246
|
)
|
|||
Balance at March 31, 2019
|
$
|
9,780
|
|
|
$
|
1,123
|
|
|
$
|
10,903
|
|
|
Interest rate
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Notes due October 2021
|
4.125%
|
|
$
|
172,456
|
|
|
$
|
600,000
|
|
Notes due May 2022
|
4.625%
|
|
150,000
|
|
|
400,000
|
|
||
Notes due April 2023
|
5.20%
|
|
275,000
|
|
|
400,000
|
|
||
Notes due March 2024
|
4.625%
|
|
375,000
|
|
|
500,000
|
|
||
Notes due January 2037
|
5.25%
|
|
35,841
|
|
|
35,841
|
|
||
Notes due March 2043
|
6.70%
|
|
425,000
|
|
|
425,000
|
|
||
Term loan due November 2024
|
Variable
|
|
395,000
|
|
|
400,000
|
|
||
Term loan due January 2025
|
Variable
|
|
850,000
|
|
|
—
|
|
||
Other debt
|
|
|
5,051
|
|
|
5,108
|
|
||
Principal amount
|
|
|
2,683,348
|
|
|
2,765,949
|
|
||
Less: unamortized costs, net
|
|
|
53,386
|
|
|
26,227
|
|
||
Total debt
|
|
|
2,629,962
|
|
|
2,739,722
|
|
||
Less: current portion long-term debt
|
|
|
62,952
|
|
|
20,108
|
|
||
Long-term debt
|
|
|
$
|
2,567,010
|
|
|
$
|
2,719,614
|
|
|
Defined Benefit Pension Plans
|
|
Nonpension Postretirement Benefit Plans
|
||||||||||||||||||||
|
United States
|
|
Foreign
|
|
|
||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||
|
March 31,
|
|
March 31,
|
|
March 31,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
Service cost
|
$
|
26
|
|
|
$
|
21
|
|
|
$
|
399
|
|
|
$
|
384
|
|
|
$
|
217
|
|
|
$
|
255
|
|
Interest cost
|
13,179
|
|
|
15,878
|
|
|
3,518
|
|
|
4,488
|
|
|
1,245
|
|
|
1,654
|
|
||||||
Expected return on plan assets
|
(21,304
|
)
|
|
(23,179
|
)
|
|
(8,208
|
)
|
|
(8,764
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of transition credit
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service (credit) cost
|
(15
|
)
|
|
(15
|
)
|
|
61
|
|
|
63
|
|
|
93
|
|
|
80
|
|
||||||
Amortization of net actuarial loss
|
8,198
|
|
|
7,036
|
|
|
2,059
|
|
|
1,612
|
|
|
736
|
|
|
511
|
|
||||||
Settlement
|
389
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost (income)
|
$
|
473
|
|
|
$
|
(259
|
)
|
|
$
|
(2,172
|
)
|
|
$
|
(2,219
|
)
|
|
$
|
2,291
|
|
|
$
|
2,500
|
|
Contributions to benefit plans
|
$
|
1,929
|
|
|
$
|
1,628
|
|
|
$
|
7,988
|
|
|
$
|
8,210
|
|
|
$
|
4,455
|
|
|
$
|
4,756
|
|
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive loss
|
|
Treasury stock
|
|
Total equity
|
||||||||||||
Balance at January 1, 2020
|
$
|
323,338
|
|
|
$
|
98,748
|
|
|
$
|
5,438,930
|
|
|
$
|
(840,143
|
)
|
|
$
|
(4,734,777
|
)
|
|
$
|
286,096
|
|
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
(21,900
|
)
|
|
—
|
|
|
—
|
|
|
(21,900
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
(208,483
|
)
|
|
—
|
|
|
—
|
|
|
(208,483
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,731
|
)
|
|
—
|
|
|
(17,731
|
)
|
||||||
Dividends paid ($0.05 per common share)
|
—
|
|
|
—
|
|
|
(8,523
|
)
|
|
—
|
|
|
—
|
|
|
(8,523
|
)
|
||||||
Issuance of common stock
|
—
|
|
|
(30,716
|
)
|
|
—
|
|
|
—
|
|
|
29,166
|
|
|
(1,550
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
1,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,521
|
|
||||||
Balance at March 31, 2020
|
$
|
323,338
|
|
|
$
|
69,553
|
|
|
$
|
5,200,024
|
|
|
$
|
(857,874
|
)
|
|
$
|
(4,705,611
|
)
|
|
$
|
29,430
|
|
|
Preferred
stock
|
|
Preference
stock
|
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive loss
|
|
Treasury stock
|
|
Total equity
|
||||||||||||||||
Balance at January 1, 2019
|
$
|
1
|
|
|
$
|
396
|
|
|
$
|
323,338
|
|
|
$
|
121,475
|
|
|
$
|
5,279,682
|
|
|
$
|
(948,961
|
)
|
|
$
|
(4,674,089
|
)
|
|
$
|
101,842
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,659
|
)
|
|
—
|
|
|
—
|
|
|
(2,659
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,983
|
|
|
—
|
|
|
30,983
|
|
||||||||
Dividends paid ($0.05 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,408
|
)
|
|
—
|
|
|
—
|
|
|
(9,408
|
)
|
||||||||
Issuance of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,925
|
)
|
|
—
|
|
|
—
|
|
|
16,975
|
|
|
(1,950
|
)
|
||||||||
Conversion to common stock
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(168
|
)
|
|
—
|
|
|
—
|
|
|
176
|
|
|
—
|
|
||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
6,784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,784
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39,142
|
)
|
|
(39,142
|
)
|
||||||||
Balance at March 31, 2019
|
$
|
1
|
|
|
$
|
388
|
|
|
$
|
323,338
|
|
|
$
|
109,166
|
|
|
$
|
5,267,615
|
|
|
$
|
(917,978
|
)
|
|
$
|
(4,696,080
|
)
|
|
$
|
86,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Reclassified from AOCI (1)
|
||||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Gains on cash flow hedges
|
|
|
|
||||
Revenue
|
$
|
61
|
|
|
$
|
111
|
|
Cost of sales
|
10
|
|
|
16
|
|
||
Total before tax
|
71
|
|
|
127
|
|
||
Income tax provision
|
17
|
|
|
32
|
|
||
Net of tax
|
$
|
54
|
|
|
$
|
95
|
|
|
|
|
|
||||
Gains (losses) on available for sale securities
|
|
|
|
||||
Interest expense, net
|
$
|
284
|
|
|
$
|
(23
|
)
|
Income tax provision (benefit)
|
71
|
|
|
(6
|
)
|
||
Net of tax
|
$
|
213
|
|
|
$
|
(17
|
)
|
|
|
|
|
||||
Pension and Postretirement Benefit Plans (2)
|
|
|
|
||||
Transition credit
|
$
|
1
|
|
|
$
|
2
|
|
Prior service costs
|
(139
|
)
|
|
(128
|
)
|
||
Actuarial losses
|
(10,993
|
)
|
|
(9,159
|
)
|
||
Settlement
|
(389
|
)
|
|
—
|
|
||
Total before tax
|
(11,520
|
)
|
|
(9,285
|
)
|
||
Income tax benefit
|
(2,650
|
)
|
|
(2,649
|
)
|
||
Net of tax
|
$
|
(8,870
|
)
|
|
$
|
(6,636
|
)
|
(1)
|
Amounts in parentheses indicate reductions to income and increases to other comprehensive loss.
|
(2)
|
Reclassified from AOCL into other components of net pension and postretirement income (see Note 12 for additional details).
|
|
Cash flow hedges
|
|
Available for sale securities
|
|
Pension and postretirement benefit plans
|
|
Foreign currency adjustments
|
|
Total
|
||||||||||
Balance at January 1, 2020
|
$
|
337
|
|
|
$
|
2,849
|
|
|
$
|
(819,018
|
)
|
|
$
|
(24,311
|
)
|
|
$
|
(840,143
|
)
|
Other comprehensive (loss) income before reclassifications (1)
|
(120
|
)
|
|
1,521
|
|
|
—
|
|
|
(27,735
|
)
|
|
(26,334
|
)
|
|||||
Reclassifications into earnings (1), (2)
|
(54
|
)
|
|
(213
|
)
|
|
8,870
|
|
|
—
|
|
|
8,603
|
|
|||||
Net other comprehensive (loss) income
|
(174
|
)
|
|
1,308
|
|
|
8,870
|
|
|
(27,735
|
)
|
|
(17,731
|
)
|
|||||
Balance at March 31, 2020
|
$
|
163
|
|
|
$
|
4,157
|
|
|
$
|
(810,148
|
)
|
|
$
|
(52,046
|
)
|
|
$
|
(857,874
|
)
|
|
Cash flow hedges
|
|
Available for sale securities
|
|
Pension and postretirement benefit plans
|
|
Foreign currency adjustments
|
|
Total
|
||||||||||
Balance at January 1, 2019
|
$
|
191
|
|
|
$
|
(3,061
|
)
|
|
$
|
(846,461
|
)
|
|
$
|
(99,630
|
)
|
|
$
|
(948,961
|
)
|
Other comprehensive income before reclassifications (1)
|
258
|
|
|
2,799
|
|
|
—
|
|
|
21,368
|
|
|
24,425
|
|
|||||
Reclassifications into earnings (1), (2)
|
(95
|
)
|
|
17
|
|
|
6,636
|
|
|
—
|
|
|
6,558
|
|
|||||
Net other comprehensive income
|
163
|
|
|
2,816
|
|
|
6,636
|
|
|
21,368
|
|
|
30,983
|
|
|||||
Balance at March 31, 2019
|
$
|
354
|
|
|
$
|
(245
|
)
|
|
$
|
(839,825
|
)
|
|
$
|
(78,262
|
)
|
|
$
|
(917,978
|
)
|
•
|
declining physical mail volumes
|
•
|
changes in postal regulations, or the financial health of posts, in the U.S. or other major markets or the loss of, or significant changes to, our contractual relationship with the United States Postal Service (USPS)
|
•
|
our ability to continue to grow volumes, gain additional economies of scale and improve profitability within our Commerce Services group
|
•
|
the loss of some of our larger clients in our Commerce Services group
|
•
|
our success at managing customer credit risk
|
•
|
third-party suppliers' ability to provide products and services required by our clients
|
•
|
changes in labor conditions and transportation costs
|
•
|
capital market disruptions or credit rating downgrades that adversely impact our ability to access capital markets at reasonable costs
|
•
|
a breach of security, including a future cyber-attack or other comparable event
|
•
|
our success in developing and marketing new products and services and obtaining regulatory approvals, if required
|
•
|
competitive factors, including pricing pressures, technological developments and the introduction of new products and services by competitors
|
•
|
expenses and potential impact on client relationships resulting from the October 2019 ransomware attack that affected the Company's operations
|
•
|
the continued availability and security of key information technology systems and the cost to comply with information security requirements and privacy laws
|
•
|
changes in global political conditions and international trade policies, including the imposition or expansion of trade tariffs
|
•
|
our success at managing relationships and costs with outsource providers of certain functions and operations
|
•
|
changes in banking regulations or the loss of our Industrial Bank charter or changes in foreign currency exchange rates and interest rates
|
•
|
the United Kingdom's recent exit from the European Union
|
•
|
intellectual property infringement claims
|
•
|
the use of the postal system for transmitting harmful biological agents, illegal substances or other terrorist attacks
|
•
|
acts of nature
|
|
Revenue
|
||||||||||||
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
Actual % change
|
|
Constant Currency % Change
|
||||||
Business services
|
$
|
444,379
|
|
|
$
|
406,545
|
|
|
9
|
%
|
|
9
|
%
|
Support services
|
122,015
|
|
|
128,599
|
|
|
(5
|
)%
|
|
(5
|
)%
|
||
Financing
|
89,078
|
|
|
97,043
|
|
|
(8
|
)%
|
|
(8
|
)%
|
||
Equipment sales
|
76,273
|
|
|
89,787
|
|
|
(15
|
)%
|
|
(15
|
)%
|
||
Supplies
|
45,709
|
|
|
50,953
|
|
|
(10
|
)%
|
|
(10
|
)%
|
||
Rentals
|
18,814
|
|
|
22,157
|
|
|
(15
|
)%
|
|
(14
|
)%
|
||
Total revenue
|
$
|
796,268
|
|
|
$
|
795,084
|
|
|
—
|
%
|
|
—
|
%
|
|
Revenue
|
||||||||||||
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
Actual % change
|
|
Constant currency % change
|
||||||
Global Ecommerce
|
$
|
292,323
|
|
|
$
|
266,254
|
|
|
10
|
%
|
|
10
|
%
|
Presort Services
|
140,720
|
|
|
134,847
|
|
|
4
|
%
|
|
4
|
%
|
||
Commerce Services
|
433,043
|
|
|
401,101
|
|
|
8
|
%
|
|
8
|
%
|
||
SendTech Solutions
|
363,225
|
|
|
393,983
|
|
|
(8
|
)%
|
|
(7
|
)%
|
||
Total
|
$
|
796,268
|
|
|
$
|
795,084
|
|
|
—
|
%
|
|
—
|
%
|
|
EBIT
|
|||||||||
|
Three Months Ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
% change
|
|||||
Global Ecommerce
|
$
|
(29,475
|
)
|
|
$
|
(14,600
|
)
|
|
>(100%)
|
|
Presort Services
|
15,695
|
|
|
15,066
|
|
|
4
|
%
|
||
Commerce Services
|
(13,780
|
)
|
|
466
|
|
|
>(100%)
|
|
||
SendTech Solutions
|
106,562
|
|
|
122,403
|
|
|
(13
|
)%
|
||
Total Segment EBIT
|
$
|
92,782
|
|
|
$
|
122,869
|
|
|
(24
|
)%
|
|
Revenue
|
|
Cost of Revenue
|
|
Gross Margin
|
||||||||||||||||||||||
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
Actual % change
|
|
Constant Currency % change
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
Business services
|
$
|
140,720
|
|
|
$
|
134,847
|
|
|
4
|
%
|
|
4
|
%
|
|
$
|
105,238
|
|
|
$
|
101,962
|
|
|
25.2
|
%
|
|
24.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Segment EBIT
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Actual % change
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment EBIT
|
$
|
15,695
|
|
|
$
|
15,066
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
||||||
Net cash (used in) provided by operating activities
|
$
|
(66,284
|
)
|
|
$
|
69,728
|
|
|
$
|
(136,012
|
)
|
Net cash used in investing activities
|
(25,458
|
)
|
|
(34,887
|
)
|
|
9,429
|
|
|||
Net cash used in financing activities
|
(159,596
|
)
|
|
(63,992
|
)
|
|
(95,604
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(10,032
|
)
|
|
794
|
|
|
(10,826
|
)
|
|||
Change in cash and cash equivalents
|
$
|
(261,370
|
)
|
|
$
|
(28,357
|
)
|
|
$
|
(233,013
|
)
|
•
|
The dramatic acceleration in the decline of physical mail volume in the geographies in which we operate, which adversely affects both our Presort Services and SendTech Solutions businesses. We cannot yet assess the extent to which these declines in mail volumes, and resulting impact to our business, are permanent or temporary. Further detail on the risk of physical mail volume decline, including an acceleration of that decline, is described in the risk factor in our Annual Report on Form 10-K for the year ended December 31, 2019 (the 2019 Annual Report) relating to the “The Continuing Decline in the Volume of Physical Mail Delivered via Traditional Postal Services”.
|
•
|
The adverse effect that declines in physical mail are having on the financial health of posts around the world, especially that of the United States Postal Service. If these financial difficulties are not resolved, or if any resolution requires them to operate differently, price in a manner that hurts their competitiveness or reduces postal volume, or causes them to change their contractual relationships with their partners or vendors, these changes could have a material adverse effect on our business. Further detail on this risk is described in the risk factor in our 2019 Annual Report related to “Significant Disruptions to Postal Operations”.
|
•
|
Significant declines in the retail industry caused by the pandemic. Although our Global Ecommerce business has seen an increase in volume of packages in the short-term, should there be a long-term change in consumer sentiment or purchasing habits it could have a material effect on our retail clients, including some of our largest clients, which could have an adverse impact on our financial performance. Further detail on this risk is described in the risk factor in our 2019 Annual Report related to “Material Change in Consumer Sentiment or Spending Habits”.
|
•
|
The decline in frequency of long-distance airplane flights has increased the costs of, and therefore the demand for, products purchased in our Global Ecommerce service’s cross-border business.
|
•
|
The effect that social distancing rules and heightened security policies have inhibited, and will continue to inhibit, our ability to sell products and provide services to our clients, fulfill orders and install equipment on a timely basis and market to prospective new clients.
|
•
|
Increased costs and reduced labor productivity associated with the extended the safety protocols, including sanitizing facilities and equipment multiple times a day, implemented in our facilities and incremental costs that may be required to hire temporary labor or redirect volumes to other facilities.
|
•
|
We could experience an increase in delinquencies in collections and an increase in bankruptcies in our clients, which could affect our cash flow. Client requests for potential payment deferrals or other contract modifications could also reduce the profitability or ongoing cash flow from some of our current customers.
|
•
|
Given the severity of the pandemic, the business continuity plans of our suppliers and third-party service providers, may not be sufficient to enable them to satisfy their obligations to us. If they are unable to satisfy these obligations, it could affect our ability to satisfy service or sales obligations to our clients, or it may affect other aspects of our internal operations. Further detail on this risk is described in the risk factor in our 2019 Annual Report related to “Third-party Suppliers and Outsource Providers”.
|
•
|
A prolonged period of generating lower earnings or cash from operations could result in a credit rating downgrade, higher costs of borrowing, or limit our access to additional debt. Further detail on this risk is described in the risk factor in our 2019 Annual Report related to “Future Credit Rating Downgrades or Capital Market Disruptions”.
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
Description
|
|
Exhibit Number in this Form 10-Q
|
3(i)(a)
|
|
3(i)(a)
|
|
3
|
|
3
|
|
4.1
|
|
4.1
|
|
10.1*
|
|
10.1
|
|
31.1
|
|
31.1
|
|
31.2
|
|
31.2
|
|
32.1
|
|
32.1
|
|
32.2
|
|
32.2
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
Inline XBRL Taxonomy Calculation Linkbase Document
|
|
|
101.DEF
|
Inline XBRL Taxonomy Definition Linkbase Document
|
|
|
101.LAB
|
Inline XBRL Taxonomy Label Linkbase Document
|
|
|
101.PRE
|
Inline XBRL Taxonomy Presentation Linkbase Document
|
|
|
104
|
The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL. (included as Exhibit 101).
|
|
|
|
|
PITNEY BOWES INC.
|
|
|
|
Date:
|
May 4, 2020
|
|
|
|
|
|
|
/s/ Stanley J. Sutula III
|
|
|
|
|
|
Stanley J. Sutula III
|
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
/s/ Joseph R. Catapano
|
|
|
|
|
|
Joseph R. Catapano
|
|
|
Vice President, Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
1 Year Pitney Bowes Chart |
1 Month Pitney Bowes Chart |
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