Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-03579 | |
Entity Registrant Name | PITNEY BOWES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0495050 | |
Entity Address, Address Line One | 3001 Summer Street, | |
Entity Address, City or Town | Stamford, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06926 | |
City Area Code | (203) | |
Local Phone Number | 356-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 172,626,898 | |
Entity Central Index Key | 0000078814 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | PBI | |
Security Exchange Name | NYSE | |
6.70% Notes due 2043 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.7% Notes due 2043 | |
Trading Symbol | PBI.PRB | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenue | $ 796,268 | $ 795,084 | |
Costs and expenses: | |||
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 | 0 | |
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 earnings (loss) per share: | |||
Continuing operations (in dollars per share) | [1] | $ (1.28) | $ (0.01) |
Discontinued operations (in dollars per share) | [1] | 0.06 | 0 |
Net loss (in dollars per share) | [1] | (1.22) | (0.01) |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | [1] | (1.28) | (0.01) |
Discontinued operations (in dollars per share) | [1] | 0.06 | 0 |
Net loss income (in dollars per share) | [1] | $ (1.22) | $ (0.01) |
Business services | |||
Revenue from contracts with customers | $ 444,379 | $ 406,545 | |
Revenue | 444,379 | 406,545 | |
Costs and expenses: | |||
Cost of products and sales | 374,665 | 327,046 | |
Support services | |||
Revenue from contracts with customers | 122,015 | 128,599 | |
Revenue | 122,015 | 128,599 | |
Costs and expenses: | |||
Cost of products and sales | 39,760 | 41,847 | |
Financing | |||
Revenue from contracts with customers | 0 | 0 | |
Revenue | 89,078 | 97,043 | |
Costs and expenses: | |||
Cost of products and sales | 12,489 | 11,364 | |
Equipment sales | |||
Revenue from contracts with customers | 17,130 | 21,293 | |
Revenue | 76,273 | 89,787 | |
Costs and expenses: | |||
Cost of equipment sales | 57,359 | 63,665 | |
Supplies | |||
Revenue from contracts with customers | 45,709 | 50,953 | |
Revenue | 45,709 | 50,953 | |
Costs and expenses: | |||
Cost of products and sales | 12,240 | 13,550 | |
Rentals | |||
Revenue from contracts with customers | 0 | 0 | |
Revenue | 18,814 | 22,157 | |
Costs and expenses: | |||
Cost of products and sales | $ 6,378 | $ 9,715 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
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 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation, tax | $ (2,817) | $ 924 |
Net unrealized gain (loss) on cash flow hedges, tax | (58) | 56 |
Net unrealized gain on investment securities, tax | 434 | 964 |
Amortization of pension and postretirement costs, tax | $ 2,650 | $ 2,649 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 0 | 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 |
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 | 0 | 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 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 29,444 | $ 17,830 |
Short-term finance receivables allowance | 23,104 | 12,556 |
Long-term finance receivables allowance | 15,764 | 7,095 |
Other assets, fair value | $ 280,083 | $ 232,938 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common stock, shares issued (in shares) | 323,337,912 | 323,337,912 |
Treasury stock (in shares) | 151,947,224 | 152,888,969 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 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 | 0 | 17,710 |
Loss on extinguishment of debt | 36,987 | 0 |
Depreciation and amortization | 40,719 | 36,885 |
Goodwill impairment | 198,169 | 0 |
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) | 0 |
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 - continuing operations | (25,458) | (34,887) |
Cash flows from financing activities: | ||
Proceeds from the issuance of long-term debt | 816,544 | 0 |
Principal payments of long-term debt | (932,600) | (12,541) |
Premiums and fees paid to extinguish debt | (32,645) | 0 |
Dividends paid to stockholders | (8,523) | (9,408) |
Common stock repurchases | 0 | (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 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Pitney Bowes Inc. (we, us, our, or the company) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world rely on the accuracy and precision delivered by our equipment, solutions, analytics, and application programming interface technology in the areas of ecommerce fulfillment, shipping and returns, cross-border ecommerce, office mailing and shipping, presort services and financing. Pitney Bowes Inc. was incorporated in the state of Delaware in 1920. For more information about us, our products, services and solutions, visit www.pitneybowes.com . Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2019 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In management's opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary to fairly state our financial position, results of operations and cash flows for the periods presented have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2020 , particularly in light of the novel coronavirus pandemic (COVID-19) and its effects on domestic and global businesses and economies. These statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2019 ( 2019 Annual Report). Certain prior year amounts have been reclassified to conform to the current year presentation. In August 2019, we entered into a definitive agreement to sell our Software Solutions business and recast prior periods to reflect the operating results of the Software Solutions business as discontinued operations. The sale was completed in December 2019, with the exception of the software business in Australia, which closed in January 2020. See Note 4 for additional information. Accounts and other receivables includes other receivables of $71 million at March 31, 2020 and $91 million at December 31, 2019 . In January 2019, we sold the direct operations and moved to a dealer model in six smaller international markets (Market Exits) within Sending Technology Solutions (SendTech Solutions). In connection with the sale, we recognized a receivable for the transfer of the lease portfolio in these international markets of $24 million . Risks and Uncertainties On March 11, 2020, the World Health Organization designated COVID-19 as a global pandemic. Through the end of February 2020, consolidated revenue was trending in line with our expectations versus the same two-month period in 2019. Beginning in March, COVID-19 and its impacts on global economies and businesses began to negatively impact our year-over-year consolidated revenue trends and results of operations. We expect COVID-19 and the resulting significantly weaker global economic conditions to negatively impact our operating results for the second quarter of 2020. Additionally, since the severity and duration of this pandemic is uncertain, we are not able to reasonably estimate the full extent of the impact of the pandemic on our operating results, financial position and liquidity for the remainder of the year. We assessed certain accounting matters that require the use of estimates, assumptions and consideration of forecasted financial information in context with the known and projected future impacts of COVID-19 as of March 31, 2020 and through the date of this report. The most significant impacts for the quarter ended March 31, 2020 are included below. While the outcomes of COVID-19 are uncertain, it is possible that the severity and duration of the pandemic could result in material impacts to our financial condition, results of operations and liquidity in future reporting periods and may cause us to take further cost-savings and cash conservation measures. • 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. Accounting Pronouncements Adopted in 2020 Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . We adopted this standard using the modified retrospective transition approach with a cumulative effect adjustment to retained earnings. The adoption of the standard resulted in an increase in the opening reserve balance for Accounts and other receivables of $15 million and the opening reserve balance for finance receivables of $10 million and a net reduction to retained earnings of $22 million . The ASU applies to financial assets measured at amortized cost, including finance receivables, trade and other receivables and investments in debt securities classified as available-for-sale and held-to-maturity. The ASU replaces the current incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The models to estimate credit losses are required to be based on historical loss experience, current conditions, reasonable and supportable forecasts and current economic outlook. Activity in the allowance for credit losses for accounts and other receivables is presented below. See Note 7 for additional information pertaining to our finance receivables. 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 Accounts receivable greater than 365 days past due, subject to certain exceptions, are written off against the allowance, although collection efforts may continue. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following tables disaggregate our revenue by source and timing of recognition: 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 Our performance obligations for revenue from products and services are as follows: Business services includes providing mail processing services, cross-border solutions, shipping solutions and fulfillment, delivery and return services. Revenue is recognized over time as the services are provided. Contract terms for these services range from one to five years followed by annual renewal periods. Support services includes providing maintenance, professional, meter and other subscription services for our mailing equipment. Contract terms range from one to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance, meter and other subscription services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided. Equipment sales generally include the sale of mailing equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment and upon acceptance or installation for other equipment. We provide a warranty that our equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation. Supplies revenue is recognized upon delivery. Revenue from leasing transactions and financing includes revenue from sales-type leases, operating leases, finance income and late fees. Advance Billings from Contracts with Customers 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 ) Advance billings are recorded when cash payments are due in advance of our performance. Items in advance billings primarily relate to support services on mailing equipment. Revenue is recognized ratably over the contract term. The net decrease in advance billings at March 31, 2020 is due to revenue recognized during the period in excess of advance billings. Revenue recognized during the period includes $55 million of advance billings at the beginning of the period, partially offset by advance billings in the quarter. Future Performance Obligations Future performance obligations include revenue streams bundled with our leasing contracts, primarily maintenance, meter and other subscription services. The transaction prices allocated to future performance obligations will be recognized as follows: Remainder of 2020 2021 2022-2025 Total SendTech Solutions $ 219,155 $ 238,137 $ 306,647 $ 763,939 The table above does not include revenue related to performance obligations for contracts with terms less than 12 months and expected consideration for those performance obligations where revenue is recognized based on the amount billable to the customer. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are Global Ecommerce, Presort Services and SendTech Solutions. Global Ecommerce and Presort Services comprise the Commerce Services reporting group. The principal products and services of each reportable segment are as follows: Global Ecommerce: Includes the revenue and related expenses from products and services that facilitate domestic retail and ecommerce shipping solutions, including fulfillment and returns, and global cross-border ecommerce transactions. Presort Services : Includes revenue and related expenses from sortation services to qualify large volumes of First Class Mail, Marketing Mail and Bound and Packet Mail (Marketing Mail Flats and Bound Printed Matter) for postal worksharing discounts. SendTech Solutions: Includes the revenue and related expenses from sending technology solutions for physical mailing, digital mailing and shipping, financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters and packages. Management measures segment profitability and performance using segment earnings before interest and taxes (EBIT). Segment EBIT is calculated by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, asset impairment charges and other items not allocated to a particular business segment. Management believes that it provides investors a useful measure of operating performance and underlying trends of the business. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations. The following tables provide information about our reportable segments and reconciliation of segment EBIT to net loss. 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 ) During the three months ended March 31, 2020, we received an advance of $4 million |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations includes the Software Solutions business, sold in December 2019, with the exception of the software business in Australia, which closed in January 2020, and the Production Mail business, sold in July 2018. Selected financial information of discontinued operations is as follows: 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 ) Assets of discontinued operations and liabilities of discontinued operations at December 31, 2019 includes the assets and liabilities of the software business in Australia. |
Earnings per Share (EPS)
Earnings per Share (EPS) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share (EPS) 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the last-in, first-out (LIFO) basis for most U.S. inventories and the first-in, first-out (FIFO) basis for most non-U.S. inventories. Inventories consisted of the following: March 31, December 31, 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 |
Finance Assets and Lessor Opera
Finance Assets and Lessor Operating Leases | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Finance Assets and Lessor Operating Leases | Finance Assets and Lessor Operating Leases Finance Assets Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three to five years. Loan receivables arise primarily from financing services offered to our clients for postage and supplies. Most loan receivables are generally due each month; however, clients may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Client acquisition costs are expensed as incurred. Finance receivables consisted of the following: 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 Maturities of gross sales-type lease receivables and gross loan receivables at March 31, 2020 were as follows: 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 Aging of Receivables The aging of gross finance receivables was as follows: 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 Allowance for Credit Losses We estimate an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Credit losses are estimated at the portfolio level based on asset type and geographic market. Historical loss experience was based on actual loss rates over the average term of the asset of five years for sales-type lease receivables and three years for loan receivables (including accrued interest). Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. The allowance for credit losses for the three months ended March 31, 2020 includes an increased probability of an economic recession and resulting impact on a client's future ability to pay amounts due. We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. As of March 31, 2020 , we believe that our finance receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We have not experienced a significant change in the collections of amounts due, but in light of the current economic situation, it is possible that our delinquency rates could increase. Activity in the allowance for credit losses for finance receivables was as follows: 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 Credit Quality The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, and a detailed manual review of their financial condition and payment history or an automated process for certain small dollar applications. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes in place track that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed. We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months. • 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. The table below shows the gross sales-type lease receivable and loan receivable balances by relative risk class and year of origination based on the relative scores of the accounts within each class. 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 The majority of the Not Scored amounts above is comprised of our International portfolio. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that it is a localized process, and there is no single credit score model that covers all countries. International credit applications below $50 thousand are subjected to an automated review process. All other credit applications are manually reviewed. A manual review includes obtaining client financial information, credit reports and other available financial information. Approximately 80% of credit applications are approved or denied through the automated review process. Lease Income Lease income from sales-type leases was as follows: 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 (1) Lease contracts do not include variable lease payments. Lessor Operating Leases We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows: 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 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets consisted of the following: 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 Amortization expense was $9 million for the three months ended March 31, 2020 and 2019 . Future amortization expense as of March 31, 2020 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. 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 Goodwill 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. Based on this, we engaged a third-party to assist in the determination of the fair value of the reporting unit. The determination of fair value, and the resulting impairment charge, relied on internal projections developed using numerous estimates and assumptions and are inherently subject to significant uncertainties. These estimates and assumptions used included revenue growth, profitability, cash flows, capital spending and other available information. The determination of fair value also incorporated a risk-adjusted discount rate, terminal growth rates and other assumptions that market participants may use. Changes in any of these estimates or assumptions could materially affect the determination of fair value and the associated goodwill impairment charge and could result in an additional impairment charge to be recorded in the future. These estimates and assumptions are considered Level 3 inputs under the fair value hierarchy. We determined that the reporting unit's estimated fair value was less than its carrying value and recorded a non-cash, pre-tax goodwill impairment charge of $198 million to reduce the carrying value of the Global Ecommerce reporting unit to its estimated fair value. Changes in the carrying value of goodwill, by reporting segment are shown in the table below. December 31, 2019 Impairment Acquisition Currency impact March 31, 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 |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value: 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. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis. 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 ) Investment Securities The valuation of investment securities is based on the market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification into the fair value hierarchy: • 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. Available-For-Sale Securities Available-for-sale investment securities are predominantly held at the Pitney Bowes Bank, whose primary business is to provide financing solutions to clients that rent postage meters and purchase supplies. Investment securities classified as available-for-sale are recorded at fair value with changes in fair value due to market conditions recorded in accumulated other comprehensive income (AOCI) and changes due to credit conditions recorded in earnings. Individual securities are considered impaired when the fair value declines below amortized cost. We use a discounted cash flow model to determine the amount of unrealized losses due to credit losses which are recognized in earnings. Unrealized losses and gains related to market conditions (i.e. interest rates) are recorded, net of tax, in AOCI. Available-for-sale securities consisted of the following: 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 Investment securities in a loss position were as follows: 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 Our allowance for credit losses on available for sale investment securities was not significant at March 31, 2020. Unrealized losses recorded during the period specifically due to credit losses were immaterial. At March 31, 2020, approximately 30% of total securities in the investment portfolio were in a net loss position. We believe our available for sale allowance for credit loss is adequate as the majority of our investments are with high grade corporate securities and U.S. government agencies. We have not recognized an impairment on any of the investment securities in an unrealized loss position because we have the ability and intent to hold these securities until recovery of the unrealized losses or expect to receive the stated principal and interest at maturity. Scheduled maturities of available-for-sale securities at March 31, 2020 were as follows: 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 The scheduled maturities of mortgage-backed and asset-backed securities may not coincide with the actual payment, as borrowers have the right to prepay obligations. We have not experienced any significant write-offs in our investment portfolio. The majority of our mortgage-backed securities are either guaranteed or supported by the U.S. Government. We have no investments in inactive markets that would warrant a possible change in our pricing methods or classification within the fair value hierarchy. Held-to-Maturity Securities Held-to-maturity securities at March 31, 2020 and December 31, 2019, include $267 million and $383 million , respectively, of short-term, highly liquid time deposits. Derivative Instruments In the normal course of business, we are exposed to the impact of changes in foreign currency exchange rates and interest rates. We mitigate these exposures by following established risk management policies and procedures, including the use of derivatives. We use derivative instruments to limit the effects of exchange rate fluctuations on financial results and manage the cost of debt. We do not use derivatives for trading or speculative purposes. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. Foreign Exchange Contracts We enter into foreign exchange contracts to mitigate the currency risk associated with the anticipated purchase of inventory between affiliates and from third parties. These contracts are designated as cash flow hedges. The effective portion of the gain or loss on cash flow hedges is included in AOCI in the period that the change in fair value occurs and is reclassified to earnings in the period that the hedged item is recorded in earnings. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges. At March 31, 2020 and December 31, 2019 , we had outstanding contracts associated with these anticipated transactions with notional amounts of $8 million and $7 million , respectively. The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties in the three months ended March 31, 2020 . The fair value of derivative instruments was as follows: Designation of Derivatives Balance Sheet Location March 31, December 31, 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 Amounts included in AOCI at March 31, 2020 related to derivative instruments will be recognized in earnings within the next 12 months. The following represents the results of cash flow hedging relationships: 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 We enter into foreign exchange contracts to minimize the impact of exchange rate fluctuations on short-term intercompany loans and related interest that are denominated in a foreign currency. The revaluation of intercompany loans and interest and the corresponding mark-to-market adjustment on derivatives are recorded in earnings. The table below represents the mark-to-market adjustments of non-designated derivative instruments. All outstanding contracts at March 31, 2020 mature within 12 months. 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 Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, investment securities, accounts receivable, loan receivables, derivative instruments, accounts payable and debt. The carrying value for cash and cash equivalents, accounts receivable, loans receivable and accounts payable approximate fair value. The fair value of our debt is estimated based on recently executed transactions and market price quotations. The inputs used to determine the fair value of our debt were classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt was as follows: March 31, 2020 December 31, 2019 Carrying value $ 2,629,962 $ 2,739,722 Fair value $ 1,967,357 $ 2,572,794 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Activity in our restructuring reserves was as follows: 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 The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt consisted of the following: 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 Interest rates on certain notes are subject to adjustment based on changes in our credit ratings. In February 2020, we secured a five -year $850 million term loan scheduled to mature January 2025 (the 2025 Term Loan). The 2025 Term Loan bears interest at LIBOR plus 5.5% and resets monthly. In March 2020, we purchased under a tender offer $428 million of the October 2021 notes, $250 million of the May 2022 notes, $125 million of the April 2023 notes and $125 million of the March 2024 notes. A $37 million loss was incurred on the early redemption of debt and is recorded in other expense. During the first quarter of 2020, we repaid $5 million of principal related to our term loans. We have a $500 million secured revolving credit facility that expires in November 2024 and contains financial and non-financial covenants. Through March 31, 2020 we had not drawn upon the credit facility; however in light of the current macroeconomic environment, we drew down $100 million |
Pensions and Other Benefit Prog
Pensions and Other Benefit Programs | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Programs | Pensions and Other Benefit Programs The components of net periodic benefit cost (income) were as follows: 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 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended March 31, 2020 and 2019 was 4.4% and 148.2% , respectively. The effective tax rate for the three months ended March 31, 2020 includes a benefit of $2 million on the $198 million goodwill impairment charge as the majority of this charge is nondeductible. The effective tax rate also includes a benefit of $2 million from the resolution of certain tax examinations and a charge of $3 million for the write-off of deferred tax assets associated with the expiration of out-of-money vested stock options and the vesting of restricted stock. The effective tax rate for the three months ended March 31, 2019 includes a $2 million tax on the $18 million book loss incurred from Market Exits, primarily due to nondeductible basis differences. The effective tax rate for the three months ended March 31, 2019 also includes a benefit of $2 million from the resolution of certain tax examinations and a charge of $2 million for the write-off of deferred tax assets associated with the expiration of out-of-money vested stock options and the vesting of restricted stock. As is the case with other large corporations, our tax returns are examined by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, it is reasonably possible that the amount of unrecognized tax benefits will decrease in the next 12 months, and this decrease could be up to 10% of our unrecognized tax benefits. The Internal Revenue Service examinations of our consolidated U.S. income tax returns for tax years prior to 2017 are closed to audit; however, various post-2011 U.S. state and local tax returns are still subject to examination. In Canada, the examination of our tax filings prior to 2015 are closed to audit. Other significant jurisdictions include France (closed through 2016), Germany (closed through 2016) and the U.K. (except for an item under appeal, closed through 2017). We also have other less significant tax filings currently subject to examination. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed into law in response to market volatility and instability resulting from COVID-19. The CARES Act includes provisions relating to the deferment of the employer portion of certain payroll taxes, refundable payroll tax credits, net operating loss carryback periods, alternative minimum tax credit refunds and modifications to the net interest deduction limitations. We are currently assessing the impact on our consolidated financial statements, but do not expect it to be material. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we are routinely defendants in, or party to, a number of pending and threatened legal actions. These may involve litigation by or against us relating to, among other things, contractual rights under vendor, insurance or other contracts; intellectual property or patent rights; equipment, service, payment or other disputes with clients; or disputes with employees. Some of these actions may be brought as a purported class action on behalf of a purported class of employees, customers or others. In management's opinion, the potential liability, if any, that may result from these actions, either individually or collectively, is not reasonably expected to have a material effect on our financial position, results of operations or cash flows as of March 31, 2020 . However, as litigation is inherently unpredictable, there can be no assurances in this regard. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Changes in stockholders’ equity were as follows: 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 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Reclassifications out of AOCL were as follows: 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). Changes in AOCL were as follows: 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 ) (1) Amounts are net of tax. Amounts in parentheses indicate debits to AOCL. (2) See table above for additional details of these reclassifications. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Accounting Pronouncements Adopted in 2020 Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . We adopted this standard using the modified retrospective transition approach with a cumulative effect adjustment to retained earnings. The adoption of the standard resulted in an increase in the opening reserve balance for Accounts and other receivables of $15 million and the opening reserve balance for finance receivables of $10 million and a net reduction to retained earnings of $22 million . The ASU applies to financial assets measured at amortized cost, including finance receivables, trade and other receivables and investments in debt securities classified as available-for-sale and held-to-maturity. The ASU replaces the current incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The models to estimate credit losses are required to be based on historical loss experience, current conditions, reasonable and supportable forecasts and current economic outlook. Activity in the allowance for credit losses for accounts and other receivables is presented below. See Note 7 for additional information pertaining to our finance receivables. 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 Accounts receivable greater than 365 days past due, subject to certain exceptions, are written off against the allowance, although collection efforts may continue. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Update | Activity in the allowance for credit losses for accounts and other receivables is presented below. See Note 7 for additional information pertaining to our finance receivables. 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 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue by source and timing of recognition: 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 |
Contract Assets and Advance Billings | Advance Billings from Contracts with Customers 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 ) |
Future Performance Obligations | The transaction prices allocated to future performance obligations will be recognized as follows: Remainder of 2020 2021 2022-2025 Total SendTech Solutions $ 219,155 $ 238,137 $ 306,647 $ 763,939 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated Statements | The following tables provide information about our reportable segments and reconciliation of segment EBIT to net loss. 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 ) |
Reconciliation of EBIT from Segments to Consolidated | 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 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial information and Assets and Liabilities | Selected financial information of discontinued operations is as follows: 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 ) Assets of discontinued operations and liabilities of discontinued operations at December 31, 2019 includes the assets and liabilities of the software business in Australia. |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | 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. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Components | Inventories consisted of the following: March 31, December 31, 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 |
Finance Assets and Lessor Ope_2
Finance Assets and Lessor Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Financing Receivables | Finance receivables consisted of the following: 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 Maturity | Maturities of gross sales-type lease receivables and gross loan receivables at March 31, 2020 were as follows: 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 |
Loan Receivable Maturity | Maturities of gross sales-type lease receivables and gross loan receivables at March 31, 2020 were as follows: 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 |
Past Due Financing Receivables | The aging of gross finance receivables was as follows: 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 |
Allowance for Credit Losses on Financing Receivables | Activity in the allowance for credit losses for finance receivables was as follows: 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 |
Financing Receivable Credit Quality Indicators | The table below shows the gross sales-type lease receivable and loan receivable balances by relative risk class and year of origination based on the relative scores of the accounts within each class. 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 |
Sales-type Lease, Lease Income | Lease income from sales-type leases was as follows: 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 (1) Lease contracts do not include variable lease payments. |
Lessor, Payments to be Received | We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows: 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 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: 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 |
Amortization Expense In Future Periods | Future amortization expense as of March 31, 2020 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, impairments, acquisitions and accelerated amortization. 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 |
Schedule of Goodwill | Changes in the carrying value of goodwill, by reporting segment are shown in the table below. December 31, 2019 Impairment Acquisition Currency impact March 31, 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 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis. 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 ) |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale securities consisted of the following: 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 |
Schedule of Unrealized Holding Losses | nvestment securities in a loss position were as follows: 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 |
Available-for-sale Securities | Scheduled maturities of available-for-sale securities at March 31, 2020 were as follows: 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 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments was as follows: Designation of Derivatives Balance Sheet Location March 31, December 31, 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 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following represents the results of cash flow hedging relationships: 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 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below represents the mark-to-market adjustments of non-designated derivative instruments. All outstanding contracts at March 31, 2020 mature within 12 months. 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 |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of our debt was as follows: March 31, 2020 December 31, 2019 Carrying value $ 2,629,962 $ 2,739,722 Fair value $ 1,967,357 $ 2,572,794 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Activity in our restructuring reserves was as follows: 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 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt consisted of the following: 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 |
Pensions and Other Benefit Pr_2
Pensions and Other Benefit Programs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The components of net periodic benefit cost (income) were as follows: 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 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders’ equity were as follows: 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCL were as follows: 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). |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCL were as follows: 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 ) (1) Amounts are net of tax. Amounts in parentheses indicate debits to AOCL. (2) See table above for additional details of these reclassifications. |
Description of Business and B_4
Description of Business and Basis of Presentation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2020USD ($)market | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Other receivables | $ 71,000 | $ 91,000 | |||
Allowance for credit losses | 38,868 | $ 22,151 | $ 19,651 | $ 20,222 | |
Goodwill impairment | 198,169 | $ 0 | |||
Commerce Services | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Goodwill impairment | 198,169 | ||||
Global Ecommerce | Commerce Services | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Carrying value percentage | 20.00% | ||||
Goodwill impairment | 198,169 | ||||
COVID-19 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Allowance for credit losses | $ 11,000 | ||||
Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Other receivables | $ 24,000 | ||||
Number of smaller markets sold | market | 6 |
Description of Business and B_5
Description of Business and Basis of Presentation (Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts and other receivables | $ 342,823 | $ 373,471 | |||
Allowance for credit losses | 38,868 | $ 22,151 | 19,651 | $ 20,222 | |
Retained earnings | (5,200,024) | (5,438,930) | |||
Allowance for credit losses | |||||
Balance at December 31, 2019 | 17,830 | ||||
Amounts charged to expense | 15,926 | $ 10,655 | |||
Balance at March 31, 2020 | 29,444 | ||||
Cumulative Effect | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 9,503 | ||||
ASU 2016-13 | |||||
Allowance for credit losses | |||||
Balance at December 31, 2019 | 17,830 | ||||
Amounts charged to expense | 3,280 | ||||
Write-offs, recoveries and currency impact | (7,002) | ||||
Balance at March 31, 2020 | 29,444 | ||||
ASU 2016-13 | Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts and other receivables | $ 15,000 | ||||
Allowance for credit losses | 10,000 | ||||
Retained earnings | $ 22,000 | ||||
ASU 2016-13 | Cumulative Effect | |||||
Allowance for credit losses | |||||
Balance at December 31, 2019 | $ 15,336 |
Revenue (Disaggregates of Reven
Revenue (Disaggregates of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from leasing transactions and financing | $ 796,268 | $ 795,084 |
Total consolidated revenue | 796,268 | 795,084 |
ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 629,233 | 607,390 |
Products/services transferred at a point in time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 78,374 | 86,877 |
Products/services transferred over time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 550,859 | 520,513 |
Sales And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 629,233 | 607,390 |
Revenue from leasing transactions and financing | 167,035 | 187,694 |
Total consolidated revenue | 796,268 | 795,084 |
Business services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 444,379 | 406,545 |
Revenue from leasing transactions and financing | 0 | 0 |
Total consolidated revenue | 444,379 | 406,545 |
Support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 122,015 | 128,599 |
Revenue from leasing transactions and financing | 0 | 0 |
Total consolidated revenue | 122,015 | 128,599 |
Financing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 89,078 | 97,043 |
Total consolidated revenue | 89,078 | 97,043 |
Equipment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 17,130 | 21,293 |
Revenue from leasing transactions and financing | 59,143 | 68,494 |
Total consolidated revenue | 76,273 | 89,787 |
Supplies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 45,709 | 50,953 |
Revenue from leasing transactions and financing | 0 | 0 |
Total consolidated revenue | 45,709 | 50,953 |
Rentals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 18,814 | 22,157 |
Total consolidated revenue | 18,814 | 22,157 |
Global Ecommerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from leasing transactions and financing | 292,323 | 266,254 |
Global Ecommerce | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 292,323 | 266,254 |
Global Ecommerce | Products/services transferred at a point in time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Global Ecommerce | Products/services transferred over time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 292,323 | 266,254 |
Global Ecommerce | Sales And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 292,323 | 266,254 |
Global Ecommerce | Business services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 292,323 | 266,254 |
Global Ecommerce | Support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Global Ecommerce | Financing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
Global Ecommerce | Equipment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
Global Ecommerce | Supplies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Global Ecommerce | Rentals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
Presort Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from leasing transactions and financing | 140,720 | 134,847 |
Presort Services | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 140,720 | 134,847 |
Presort Services | Products/services transferred at a point in time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Presort Services | Products/services transferred over time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 140,720 | 134,847 |
Presort Services | Sales And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 140,720 | 134,847 |
Presort Services | Business services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 140,720 | 134,847 |
Presort Services | Support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Presort Services | Financing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
Presort Services | Equipment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
Presort Services | Supplies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Presort Services | Rentals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 0 | 0 |
SendTech Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from leasing transactions and financing | 363,225 | 393,983 |
SendTech Solutions | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 196,190 | 206,289 |
SendTech Solutions | Products/services transferred at a point in time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 78,374 | 86,877 |
SendTech Solutions | Products/services transferred over time | ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 117,816 | 119,412 |
SendTech Solutions | Sales And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 196,190 | 206,289 |
SendTech Solutions | Business services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 11,336 | 5,444 |
SendTech Solutions | Support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 122,015 | 128,599 |
SendTech Solutions | Financing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | 89,078 | 97,043 |
SendTech Solutions | Equipment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 17,130 | 21,293 |
Revenue from leasing transactions and financing | 59,143 | 68,494 |
SendTech Solutions | Supplies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 45,709 | 50,953 |
SendTech Solutions | Rentals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services | 0 | 0 |
Revenue from leasing transactions and financing | $ 18,814 | $ 22,157 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | |
Advanced billings, revenue recognized | $ 55 |
Expected timing of satisfaction period | 12 months |
Business services | Minimum | |
Disaggregation of Revenue [Line Items] | |
Period of recognition | 1 year |
Business services | Maximum | |
Disaggregation of Revenue [Line Items] | |
Period of recognition | 5 years |
Revenue (Contract Assets and Ad
Revenue (Contract Assets and Advance Billings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Advance billings, current | $ 88,038 | $ 92,464 |
Advance billings, noncurrent | 1,192 | $ 1,245 |
Increase/ (decrease) | ||
Advance billings, current | (4,426) | |
Advance billings, noncurrent | $ (53) |
Revenue (Future Performance Obl
Revenue (Future Performance Obligations) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 763,939 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 219,155 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 238,137 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Future performance obligations | $ 306,647 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 3 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment reporting information profit (loss) | ||
Revenue | $ 796,268 | $ 795,084 |
Reconciliation of Segment EBIT to net loss: | ||
Restructuring charges | (3,817) | (3,700) |
Interest expense, net | (25,883) | (27,602) |
Goodwill impairment | (198,169) | 0 |
Loss on extinguishment of debt | (36,987) | 0 |
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) |
Operating Segments | ||
Segment reporting information profit (loss) | ||
EBIT | 92,782 | 122,869 |
Segment Reconciling Items | ||
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) | 0 |
Loss on extinguishment of debt | (36,987) | 0 |
Loss on Market Exits | 0 | (17,710) |
Transaction costs | (292) | (258) |
Benefit (provision) for income taxes | 10,030 | (7,820) |
Insurance claim | 4,000 | |
Commerce Services | ||
Segment reporting information profit (loss) | ||
Revenue from contracts with customers | 433,043 | 401,101 |
Reconciliation of Segment EBIT to net loss: | ||
Goodwill impairment | (198,169) | |
Commerce Services | Operating Segments | ||
Segment reporting information profit (loss) | ||
EBIT | (13,780) | 466 |
Commerce Services | Global Ecommerce | ||
Segment reporting information profit (loss) | ||
Revenue from contracts with customers | 292,323 | 266,254 |
EBIT | (29,475) | (14,600) |
Reconciliation of Segment EBIT to net loss: | ||
Goodwill impairment | (198,169) | |
Commerce Services | Presort Services | ||
Segment reporting information profit (loss) | ||
Revenue from contracts with customers | 140,720 | 134,847 |
EBIT | 15,695 | 15,066 |
Reconciliation of Segment EBIT to net loss: | ||
Goodwill impairment | 0 | |
SendTech Solutions | ||
Segment reporting information profit (loss) | ||
Revenue from contracts with customers | 363,225 | 393,983 |
Reconciliation of Segment EBIT to net loss: | ||
Goodwill impairment | 0 | |
SendTech Solutions | Operating Segments | ||
Segment reporting information profit (loss) | ||
EBIT | $ 106,562 | $ 122,403 |
Discontinued Operations (Financ
Discontinued Operations (Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of tax | $ 10,064 | $ (116) |
Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 0 | 74,068 |
Earnings (loss) from discontinued operations | 0 | 931 |
Gain (loss) on sale (including transaction costs) | 9,873 | (667) |
Income (loss) from discontinued operations before taxes | 9,873 | 264 |
Tax (benefit) provision | (191) | 380 |
Income (loss) from discontinued operations, net of tax | 10,064 | (116) |
Software Solutions | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 0 | 73,318 |
Earnings (loss) from discontinued operations | 0 | 1,594 |
Gain (loss) on sale (including transaction costs) | 10,285 | 0 |
Income (loss) from discontinued operations before taxes | 10,285 | 1,594 |
Production Mail | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 0 | 750 |
Earnings (loss) from discontinued operations | 0 | (663) |
Gain (loss) on sale (including transaction costs) | (412) | (667) |
Income (loss) from discontinued operations before taxes | $ (412) | $ (1,330) |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share [Abstract] | |||
Loss from continuing operations | $ (218,547) | $ (2,543) | |
Numerator: | |||
Income (loss) from discontinued operations, net of tax | 10,064 | (116) | |
Net loss | (208,483) | (2,659) | |
Less: Preference stock dividend | 0 | 8 | |
Loss attributable to common stockholders (numerator for basic EPS) | $ (208,483) | $ (2,667) | |
Denominator: | |||
Weighted-average shares used in basic EPS (in shares) | 170,912,000 | 185,971,000 | |
Dilutive effect of common stock equivalents (in shares) | 0 | 0 | |
Weighted-average shares used in diluted EPS (in shares) | 170,912,000 | 185,971,000 | |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | [1] | $ (1.28) | $ (0.01) |
Discontinued operations (in dollars per share) | [1] | 0.06 | 0 |
Net loss (in dollars per share) | [1] | (1.22) | (0.01) |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | [1] | (1.28) | (0.01) |
Discontinued operations (in dollars per share) | [1] | 0.06 | 0 |
Net loss income (in dollars per share) | [1] | $ (1.22) | $ (0.01) |
Anti-dilutive options excluded from diluted earnings per share (in shares) | 17,617,000 | 14,989,000 | |
Dilutive effect of common stock equivalents | 1,554,000 | 1,618,000 | |
[1] | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
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 |
Finance Assets and Lessor Ope_3
Finance Assets and Lessor Operating Leases (Finance Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (38,868) | $ (19,651) | $ (22,151) | $ (20,222) |
Net investment in receivables | 1,199,352 | 1,255,130 | ||
North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net investment in receivables | 1,030,046 | 1,059,926 | ||
International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net investment in receivables | 169,306 | 195,204 | ||
Sales-type lease receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 1,231,546 | 1,280,054 | ||
Unguaranteed residual values | 51,646 | 53,723 | ||
Unearned income | (362,515) | (385,169) | ||
Allowance for credit losses | (30,816) | (13,005) | ||
Net investment in receivables | 889,861 | 935,603 | ||
Sales-type lease receivables | North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 1,031,493 | 1,055,852 | ||
Unguaranteed residual values | 40,345 | 41,934 | ||
Unearned income | (301,136) | (319,281) | ||
Allowance for credit losses | (25,933) | (10,920) | (13,136) | (10,253) |
Net investment in receivables | 744,769 | 767,585 | ||
Sales-type lease receivables | International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 200,053 | 224,202 | ||
Unguaranteed residual values | 11,301 | 11,789 | ||
Unearned income | (61,379) | (65,888) | ||
Allowance for credit losses | (4,883) | (2,085) | (1,884) | (2,355) |
Net investment in receivables | 145,092 | 168,018 | ||
Loan receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 317,543 | 326,173 | ||
Allowance for credit losses | (8,052) | (6,646) | ||
Net investment in receivables | 309,491 | 319,527 | ||
Loan receivables | North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 292,699 | 298,247 | ||
Allowance for credit losses | (7,422) | (5,906) | (6,399) | (6,777) |
Net investment in receivables | 285,277 | 292,341 | ||
Loan receivables | International | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross finance receivables | 24,844 | 27,926 | ||
Allowance for credit losses | (630) | (740) | $ (732) | $ (837) |
Net investment in receivables | $ 24,214 | $ 27,186 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lease period | 3 years | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lease period | 5 years |
Finance Assets and Lessor Ope_4
Finance Assets and Lessor Operating Leases (Sales-type Lease and Loan Receivables) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | $ 380,135 |
Year ending December 31, 2021 | 385,150 |
Year ending December 31, 2022 | 261,419 |
Year ending December 31, 2023 | 143,938 |
Year ending December 31, 2024 | 54,836 |
Thereafter | 6,068 |
Total | 1,231,546 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 281,556 |
Year ending December 31, 2021 | 11,660 |
Year ending December 31, 2022 | 9,999 |
Year ending December 31, 2023 | 5,222 |
Year ending December 31, 2024 | 6,603 |
Thereafter | 2,503 |
Total | 317,543 |
North America | |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | 321,928 |
Year ending December 31, 2021 | 320,823 |
Year ending December 31, 2022 | 217,470 |
Year ending December 31, 2023 | 120,443 |
Year ending December 31, 2024 | 46,447 |
Thereafter | 4,382 |
Total | 1,031,493 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 256,712 |
Year ending December 31, 2021 | 11,660 |
Year ending December 31, 2022 | 9,999 |
Year ending December 31, 2023 | 5,222 |
Year ending December 31, 2024 | 6,603 |
Thereafter | 2,503 |
Total | 292,699 |
International | |
Sales-type Lease Receivables | |
Remaining for year ending December 31, 2020 | 58,207 |
Year ending December 31, 2021 | 64,327 |
Year ending December 31, 2022 | 43,949 |
Year ending December 31, 2023 | 23,495 |
Year ending December 31, 2024 | 8,389 |
Thereafter | 1,686 |
Total | 200,053 |
Loan Receivables | |
Remaining for year ending December 31, 2020 | 24,844 |
Year ending December 31, 2021 | 0 |
Year ending December 31, 2022 | 0 |
Year ending December 31, 2023 | 0 |
Year ending December 31, 2024 | 0 |
Thereafter | 0 |
Total | $ 24,844 |
Finance Assets and Lessor Ope_5
Finance Assets and Lessor Operating Leases (Aging of Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,549,089 | $ 1,606,227 |
Still accruing interest | 8,828 | 8,131 |
Not accruing interest | 20,959 | 22,667 |
Total | 29,787 | 30,798 |
1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 1,519,302 | 1,575,429 |
Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 29,787 | 30,798 |
Sales-type lease receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,031,493 | 1,055,852 |
Still accruing interest | 4,856 | 4,835 |
Not accruing interest | 17,758 | 18,105 |
Total | 22,614 | 22,940 |
Sales-type lease receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 1,008,879 | 1,032,912 |
Sales-type lease receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 22,614 | 22,940 |
Sales-type lease receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 200,053 | 224,202 |
Still accruing interest | 1,309 | 1,081 |
Not accruing interest | 1,063 | 2,302 |
Total | 2,372 | 3,383 |
Sales-type lease receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 197,681 | 220,819 |
Sales-type lease receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 2,372 | 3,383 |
Loan receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 317,543 | |
Loan receivables | North America | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 292,699 | 298,247 |
Still accruing interest | 2,538 | 2,094 |
Not accruing interest | 1,981 | 2,152 |
Total | 4,519 | 4,246 |
Loan receivables | North America | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 288,180 | 294,001 |
Loan receivables | North America | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 4,519 | 4,246 |
Loan receivables | International | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 24,844 | 27,926 |
Still accruing interest | 125 | 121 |
Not accruing interest | 157 | 108 |
Total | 282 | 229 |
Loan receivables | International | 1 - 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 24,562 | 27,697 |
Loan receivables | International | Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | $ 282 | $ 229 |
Finance Assets and Lessor Ope_6
Finance Assets and Lessor Operating Leases (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition resume period (less than) | 60 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 19,651 | $ 20,222 |
Amounts charged to expense | 12,646 | 4,607 |
Write-offs | (4,028) | (3,572) |
Recoveries | 1,314 | 1,329 |
Other | (218) | (435) |
Ending Balance | 38,868 | 22,151 |
Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ 9,503 | |
Sales-type lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition discontinuation period (more than) | 120 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 13,005 | |
Write-offs | (248) | (245) |
Recoveries | 31 | 40 |
Ending Balance | 30,816 | |
Sales-type lease receivables | North America | ||
Allowance for Credit Losses | ||
Beginning Balance | 10,920 | 10,253 |
Amounts charged to expense | 6,892 | 3,399 |
Write-offs | (1,618) | (878) |
Recoveries | 592 | 347 |
Other | (124) | 15 |
Ending Balance | 25,933 | 13,136 |
Sales-type lease receivables | North America | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | 9,271 | |
Sales-type lease receivables | International | ||
Allowance for Credit Losses | ||
Beginning Balance | 2,085 | 2,355 |
Amounts charged to expense | 1,345 | 231 |
Other | (80) | (497) |
Ending Balance | 4,883 | 1,884 |
Sales-type lease receivables | International | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ 1,750 | |
Loan receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revenue recognition discontinuation period (more than) | 90 days | |
Allowance for Credit Losses | ||
Beginning Balance | $ 6,646 | |
Ending Balance | 8,052 | |
Loan receivables | North America | ||
Allowance for Credit Losses | ||
Beginning Balance | 5,906 | 6,777 |
Amounts charged to expense | 4,006 | 957 |
Write-offs | (2,058) | (2,280) |
Recoveries | 691 | 942 |
Other | (7) | 3 |
Ending Balance | 7,422 | 6,399 |
Loan receivables | North America | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | (1,116) | |
Loan receivables | International | ||
Allowance for Credit Losses | ||
Beginning Balance | 740 | 837 |
Amounts charged to expense | 403 | 20 |
Write-offs | (104) | (169) |
Recoveries | 0 | 0 |
Other | (7) | 44 |
Ending Balance | 630 | $ 732 |
Loan receivables | International | Cumulative Effect | ||
Allowance for Credit Losses | ||
Beginning Balance | $ (402) |
Finance Assets and Lessor Ope_7
Finance Assets and Lessor Operating Leases (Credit Quality) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1,549,089 | $ 1,606,227 |
Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Total | $ 1,034,731 | |
Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 40.00% | |
Total | $ 218,066 | |
High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Approximate percentage of portfolio | 30.00% | |
Total | $ 25,207 | |
Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 271,085 | |
International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Receivables subject to review | $ 50 | |
Percent of applications approved or denied | 80.00% | |
Sales-type lease receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 119,265 | |
2019 | 423,487 | |
2018 | 336,406 | |
2017 | 212,138 | |
2016 | 98,441 | |
Prior | 41,809 | |
Sales-type lease receivables | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 80,794 | |
2019 | 278,796 | |
2018 | 225,328 | |
2017 | 141,499 | |
2016 | 62,994 | |
Prior | 28,603 | |
Sales-type lease receivables | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 13,337 | |
2019 | 52,267 | |
2018 | 45,057 | |
2017 | 29,346 | |
2016 | 12,816 | |
Prior | 7,091 | |
Sales-type lease receivables | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,651 | |
2019 | 5,961 | |
2018 | 5,516 | |
2017 | 3,610 | |
2016 | 2,478 | |
Prior | 833 | |
Sales-type lease receivables | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 23,483 | |
2019 | 86,463 | |
2018 | 60,505 | |
2017 | 37,683 | |
2016 | 20,153 | |
Prior | 5,282 | |
Sales-type lease receivables | North America | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,031,493 | 1,055,852 |
Sales-type lease receivables | International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 200,053 | 224,202 |
Loan receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 317,543 | |
Loan receivables | Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 216,717 | |
Loan receivables | Medium | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 58,152 | |
Loan receivables | High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,158 | |
Loan receivables | Not Scored | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 37,516 | |
Loan receivables | North America | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 292,699 | 298,247 |
Loan receivables | International | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 24,844 | $ 27,926 |
Finance Assets and Lessor Ope_8
Finance Assets and Lessor Operating Leases (Lease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Profit recognized at commencement | $ 28,920 | $ 36,360 |
Interest income | 34,260 | 59,478 |
Total lease income from sales-type leases | $ 63,180 | $ 95,838 |
Finance Assets and Lessor Ope_9
Finance Assets and Lessor Operating Leases (Operating Leases) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
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 |
Mailing Equipment | Minimum | |
Lessor, Lease, Description [Line Items] | |
Term | 1 year |
Mailing Equipment | Maximum | |
Lessor, Lease, Description [Line Items] | |
Term | 5 years |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite lived intangible assets | |||
Gross Carrying Amount | $ 310,554 | $ 310,589 | |
Accumulated Amortization | (128,930) | (119,949) | |
Net Carrying Amount | 181,624 | 190,640 | |
Amortization expense | 9,000 | $ 9,000 | |
Customer relationships | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 265,630 | 265,665 | |
Accumulated Amortization | (95,136) | (88,550) | |
Net Carrying Amount | 170,494 | 177,115 | |
Software & technology | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 31,600 | 31,600 | |
Accumulated Amortization | (21,576) | (19,999) | |
Net Carrying Amount | 10,024 | 11,601 | |
Trademarks & other | |||
Finite lived intangible assets | |||
Gross Carrying Amount | 13,324 | 13,324 | |
Accumulated Amortization | (12,218) | (11,400) | |
Net Carrying Amount | $ 1,106 | $ 1,924 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite lived intangible assets future amortization expense | ||
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 | |
Net Carrying Amount | $ 181,624 | $ 190,640 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill (Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill | ||
Beginning balance | $ 1,324,179 | |
Impairment | (198,169) | $ 0 |
Acquisition | 4,338 | |
Currency impact | (5,313) | |
Ending balance | 1,125,035 | |
Commerce Services | ||
Goodwill | ||
Beginning balance | 821,960 | |
Impairment | (198,169) | |
Acquisition | 4,338 | |
Currency impact | 0 | |
Ending balance | 628,129 | |
Commerce Services | Global Ecommerce | ||
Goodwill | ||
Beginning balance | 609,431 | |
Impairment | (198,169) | |
Acquisition | 0 | |
Currency impact | 0 | |
Ending balance | 411,262 | |
Commerce Services | Presort Services | ||
Goodwill | ||
Beginning balance | 212,529 | |
Impairment | 0 | |
Acquisition | 4,338 | |
Currency impact | 0 | |
Ending balance | 216,867 | |
SendTech Solutions | ||
Goodwill | ||
Beginning balance | 502,219 | |
Impairment | 0 | |
Acquisition | 0 | |
Currency impact | (5,313) | |
Ending balance | $ 496,906 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 266,960 | $ 222,120 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 260,464 | 401,805 |
Equity securities | 17,044 | 21,979 |
Mortgage-backed / asset-backed securities | 107,457 | 66,339 |
Total assets | 569,269 | 667,638 |
Liabilities | (3,758) | (1,402) |
Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 148,561 | 161,441 |
Equity securities | 0 | 0 |
Mortgage-backed / asset-backed securities | 0 | 0 |
Total assets | 210,640 | 227,669 |
Liabilities | 0 | 0 |
Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 111,903 | 240,364 |
Equity securities | 17,044 | 21,979 |
Mortgage-backed / asset-backed securities | 107,457 | 66,339 |
Total assets | 358,629 | 439,969 |
Liabilities | (3,758) | (1,402) |
Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed / asset-backed securities | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign exchange contracts | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6,071 | 3,256 |
Derivative liabilities | (3,758) | (1,402) |
Foreign exchange contracts | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign exchange contracts | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6,071 | 3,256 |
Derivative liabilities | (3,758) | (1,402) |
Foreign exchange contracts | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,691 | 1,656 |
Commingled fixed income securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 20,379 | 20,060 |
Commingled fixed income securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,691 | 1,656 |
Commingled fixed income securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 18,688 | 18,404 |
Commingled fixed income securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 85,800 | 81,976 |
Government and related securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 85,842 | 82,050 |
Government and related securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 60,388 | 64,572 |
Government and related securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 25,454 | 17,478 |
Government and related securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 72,012 | 72,149 |
Corporate debt securities | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 72,012 | 72,149 |
Corporate debt securities | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate debt securities | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 72,012 | 72,149 |
Corporate debt securities | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 261,688 | $ 218,512 |
Gross unrealized gains | 8,561 | 4,327 |
Gross unrealized losses | (3,289) | (719) |
Estimated fair value | 266,960 | 222,120 |
Government and related securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 81,698 | 80,732 |
Gross unrealized gains | 4,462 | 1,358 |
Gross unrealized losses | (360) | (114) |
Estimated fair value | 85,800 | 81,976 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 73,338 | 70,426 |
Gross unrealized gains | 1,270 | 2,009 |
Gross unrealized losses | (2,596) | (286) |
Estimated fair value | 72,012 | 72,149 |
Commingled fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,684 | 1,675 |
Gross unrealized gains | 7 | 0 |
Gross unrealized losses | 0 | (19) |
Estimated fair value | 1,691 | 1,656 |
Mortgage-backed / asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 104,968 | 65,679 |
Gross unrealized gains | 2,822 | 960 |
Gross unrealized losses | (333) | (300) |
Estimated fair value | $ 107,457 | $ 66,339 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments (Unrealized Holding Losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Less than 12 continuous months | $ 59,815 | $ 52,521 |
Greater than 12 continuous months | 7,906 | 9,227 |
Total | 67,721 | 61,748 |
Gross unrealized losses | ||
Less than 12 continuous months | 3,104 | 583 |
Greater than 12 continuous months | 185 | 136 |
Total | $ 3,289 | $ 719 |
Fair Value Measurements and D_6
Fair Value Measurements and Derivative Instruments (Available-for-sale Securities Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Within 1 year | $ 26,602 | |
After 1 year through 5 years | 49,024 | |
After 5 years through 10 years | 61,991 | |
After 10 years | 124,071 | |
Total | 261,688 | $ 218,512 |
Estimated fair value | ||
Within 1 year | 26,831 | |
After 1 year through 5 years | 50,100 | |
After 5 years through 10 years | 61,909 | |
After 10 years | 128,120 | |
Total | $ 266,960 | $ 222,120 |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Percentage of securities in loss position | 30.00% | |
Time deposits | $ 267 | $ 383 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 8 | $ 7 |
Fair Value Measurements and D_8
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total net derivative asset | $ 2,313 | $ 1,854 |
Total derivative assets | ||
Derivative [Line Items] | ||
Total net derivative asset | 6,071 | 3,256 |
Total derivative liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (3,758) | (1,402) |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 77 | 207 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | (157) | (56) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments | ||
Derivative [Line Items] | ||
Total net derivative asset | 5,994 | 3,049 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Total net derivative asset | $ (3,601) | $ (1,346) |
Fair Value Measurements and D_9
Fair Value Measurements and Derivative Instruments (Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 71 | 127 |
Revenue | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 61 | 111 |
Cost of sales | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | 10 | 16 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) | (160) | 345 |
Foreign exchange contracts | Selling, general and administrative expense | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in Earnings | $ (4,867) | $ 5,269 |
Fair Value Measurements and _10
Fair Value Measurements and Derivative Instruments (Fair Value of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 2,629,962 | $ 2,739,722 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,967,357 | $ 2,572,794 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Costs | ||
Balance Beginning | $ 12,006 | $ 15,449 |
Expenses, net | 3,054 | 3,700 |
Cash payments | (6,047) | (8,246) |
Balance Ending | $ 9,013 | 10,903 |
Minimum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 12 months | |
Maximum | ||
Restructuring Costs | ||
Restructuring reserve, expected payment period | 24 months | |
Severance and benefits costs | ||
Restructuring Costs | ||
Balance Beginning | $ 11,937 | 13,641 |
Expenses, net | 2,979 | 3,432 |
Cash payments | (5,933) | (7,293) |
Balance Ending | 8,983 | 9,780 |
Other exit costs | ||
Restructuring Costs | ||
Balance Beginning | 69 | 1,808 |
Expenses, net | 75 | 268 |
Cash payments | (114) | (953) |
Balance Ending | $ 30 | $ 1,123 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
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 |
Notes due | Notes due October 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Principal amount | $ 172,456 | 600,000 |
Notes due | Notes due May 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.625% | |
Principal amount | $ 150,000 | 400,000 |
Notes due | Notes due April 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.20% | |
Principal amount | $ 275,000 | 400,000 |
Notes due | Notes due March 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.625% | |
Principal amount | $ 375,000 | 500,000 |
Notes due | Notes due January 2037 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.25% | |
Principal amount | $ 35,841 | 35,841 |
Notes due | Notes due March 2043 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.70% | |
Principal amount | $ 425,000 | 425,000 |
Notes due | Term loan due November 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | 395,000 | 400,000 |
Notes due | Term loan due January 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount | 850,000 | 0 |
Other debt | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 5,051 | $ 5,108 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 36,987,000 | $ 0 | ||
Notes due | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | 5,000,000 | |||
Line of credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 500,000,000 | |||
Line of credit | Revolving credit facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | $ 100,000,000 | |||
2025 Term Loan | Notes due | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Loan amount | $ 850,000,000 | |||
2025 Term Loan | Notes due | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.50% | |||
Notes due October 2021 | Notes due | ||||
Debt Instrument [Line Items] | ||||
Debt redeemed | 428,000,000 | |||
Notes due May 2022 | Notes due | ||||
Debt Instrument [Line Items] | ||||
Debt redeemed | 250,000,000 | |||
Notes due April 2023 | Notes due | ||||
Debt Instrument [Line Items] | ||||
Debt redeemed | 125,000,000 | |||
Notes due March 2024 | Notes due | ||||
Debt Instrument [Line Items] | ||||
Debt redeemed | $ 125,000,000 |
Pensions and Other Benefit Pr_3
Pensions and Other Benefit Programs (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Pension Plans | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 26 | $ 21 |
Interest cost | 13,179 | 15,878 |
Expected return on plan assets | (21,304) | (23,179) |
Amortization of transition credit | 0 | 0 |
Amortization of prior service (credit) cost | (15) | (15) |
Amortization of net actuarial loss | 8,198 | 7,036 |
Settlement | 389 | 0 |
Net periodic benefit cost (income) | 473 | (259) |
Contributions to benefit plans | 1,929 | 1,628 |
Defined Benefit Pension Plans | Foreign | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 399 | 384 |
Interest cost | 3,518 | 4,488 |
Expected return on plan assets | (8,208) | (8,764) |
Amortization of transition credit | (1) | (2) |
Amortization of prior service (credit) cost | 61 | 63 |
Amortization of net actuarial loss | 2,059 | 1,612 |
Settlement | 0 | 0 |
Net periodic benefit cost (income) | (2,172) | (2,219) |
Contributions to benefit plans | 7,988 | 8,210 |
Nonpension Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 217 | 255 |
Interest cost | 1,245 | 1,654 |
Expected return on plan assets | 0 | 0 |
Amortization of transition credit | 0 | 0 |
Amortization of prior service (credit) cost | 93 | 80 |
Amortization of net actuarial loss | 736 | 511 |
Settlement | 0 | 0 |
Net periodic benefit cost (income) | 2,291 | 2,500 |
Contributions to benefit plans | $ 4,455 | $ 4,756 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percent) | 4.40% | 148.20% |
Benefit from goodwill impairment | $ 2,000 | |
Goodwill impairment | 198,169 | $ 0 |
Tax benefit from resolution of settlement | 2,000 | 2,000 |
Deferred tax assets associated with the expiration of out-of-money vested stock options and the vesting of restricted stock | 3,000 | 2,000 |
Tax from Market Exits | 2,000 | |
Loss on disposition of businesses | $ 0 | $ 17,710 |
Percent decrease in unrecognized benefits, reasonably possible (up to) | 10.00% |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | $ 286,096 | $ 101,842 |
Net loss | (208,483) | (2,659) |
Other comprehensive income (loss) | (17,731) | 30,983 |
Dividends paid | (8,523) | (9,408) |
Issuance of common stock | (1,550) | (1,950) |
Conversion to common stock | 0 | |
Stock-based compensation expense | 1,521 | 6,784 |
Repurchase of common stock | (39,142) | |
Balances, end of period | $ 29,430 | $ 86,450 |
Dividends paid (USD per share) | $ 0.05 | $ 0.05 |
Cumulative Effect | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | $ (21,900) | |
Preferred stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | $ 1 | |
Balances, end of period | 1 | |
Preference stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | 396 | |
Conversion to common stock | (8) | |
Balances, end of period | 388 | |
Common stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | 323,338 | 323,338 |
Balances, end of period | 323,338 | 323,338 |
Additional paid-in capital | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | 98,748 | 121,475 |
Issuance of common stock | (30,716) | (18,925) |
Conversion to common stock | (168) | |
Stock-based compensation expense | 1,521 | 6,784 |
Balances, end of period | 69,553 | 109,166 |
Retained earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | 5,438,930 | 5,279,682 |
Net loss | (208,483) | (2,659) |
Dividends paid | (8,523) | (9,408) |
Balances, end of period | 5,200,024 | 5,267,615 |
Retained earnings | Cumulative Effect | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | (21,900) | |
Accumulated other comprehensive loss | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | (840,143) | (948,961) |
Other comprehensive income (loss) | (17,731) | 30,983 |
Balances, end of period | (857,874) | (917,978) |
Treasury stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Balances, beginning of period | (4,734,777) | (4,674,089) |
Issuance of common stock | 29,166 | 16,975 |
Conversion to common stock | 176 | |
Repurchase of common stock | (39,142) | |
Balances, end of period | $ (4,705,611) | $ (4,696,080) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 796,268 | $ 795,084 |
Interest expense, net | (25,883) | (27,602) |
(Loss) income from continuing operations before taxes | (228,577) | 5,277 |
Income tax provision (benefit) | 10,030 | (7,820) |
Net loss | (208,483) | (2,659) |
Pension and Postretirement Benefit Plans | (248,633) | (261,669) |
Reclassification out of Accumulated Other Comprehensive Loss | Cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | 61 | 111 |
Cost of sales | 10 | 16 |
(Loss) income from continuing operations before taxes | 71 | 127 |
Income tax provision (benefit) | 17 | 32 |
Net loss | 54 | 95 |
Reclassification out of Accumulated Other Comprehensive Loss | Available for sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense, net | 284 | (23) |
Income tax provision (benefit) | 71 | (6) |
Net loss | 213 | (17) |
Reclassification out of Accumulated Other Comprehensive Loss | Pension and postretirement benefit plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Loss) income from continuing operations before taxes | (11,520) | (9,285) |
Income tax provision (benefit) | (2,650) | (2,649) |
Net loss | (8,870) | (6,636) |
Reclassification out of Accumulated Other Comprehensive Loss | Transition credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and Postretirement Benefit Plans | 1 | 2 |
Reclassification out of Accumulated Other Comprehensive Loss | Prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and Postretirement Benefit Plans | (139) | (128) |
Reclassification out of Accumulated Other Comprehensive Loss | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and Postretirement Benefit Plans | (10,993) | (9,159) |
Reclassification out of Accumulated Other Comprehensive Loss | Settlements | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and Postretirement Benefit Plans | $ (389) | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | $ 286,096 | $ 101,842 |
Other comprehensive income (loss) before reclassifications | (26,334) | 24,425 |
Reclassifications into earnings | 8,603 | 6,558 |
Other comprehensive (loss) income, net of tax | (17,731) | 30,983 |
Balances, end of period | 29,430 | 86,450 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | 337 | 191 |
Other comprehensive income (loss) before reclassifications | (120) | 258 |
Reclassifications into earnings | (54) | (95) |
Other comprehensive (loss) income, net of tax | (174) | 163 |
Balances, end of period | 163 | 354 |
Available for sale securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | 2,849 | (3,061) |
Other comprehensive income (loss) before reclassifications | 1,521 | 2,799 |
Reclassifications into earnings | (213) | 17 |
Other comprehensive (loss) income, net of tax | 1,308 | 2,816 |
Balances, end of period | 4,157 | (245) |
Pension and postretirement benefit plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | (819,018) | (846,461) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassifications into earnings | 8,870 | 6,636 |
Other comprehensive (loss) income, net of tax | 8,870 | 6,636 |
Balances, end of period | (810,148) | (839,825) |
Foreign currency adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | (24,311) | (99,630) |
Other comprehensive income (loss) before reclassifications | (27,735) | 21,368 |
Reclassifications into earnings | 0 | 0 |
Other comprehensive (loss) income, net of tax | (27,735) | 21,368 |
Balances, end of period | (52,046) | (78,262) |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balances, beginning of period | (840,143) | (948,961) |
Other comprehensive (loss) income, net of tax | (17,731) | 30,983 |
Balances, end of period | $ (857,874) | $ (917,978) |