Note: Consolidated statements of income; revenue and EBIT by business segment; and reconciliation of GAAP to non-GAAP measures for the three and nine months ended September 30, 2011 and 2010, and consolidated balance sheets at September 30, 2011 and June 30, 2011 are attached.
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Pitney Bowes Inc. |
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| Consolidated Statements of Income | |||||||||||||||||||
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(Unaudited) |
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| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2011 | 2010 (2) | 2011 | 2010 (2) | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Equipment sales | $ | 221,475 | $ | 245,634 | $ | 706,027 | $ | 713,021 | |||||||||||
| Supplies | 74,271 | 77,304 | 235,728 | 239,635 | |||||||||||||||
| Software | 113,224 | 98,444 | 318,305 | 270,508 | |||||||||||||||
| Rentals | 140,172 | 151,399 | 425,799 | 456,977 | |||||||||||||||
| Financing | 150,038 | 157,333 | 454,223 | 476,712 | |||||||||||||||
| Support services | 175,286 | 175,844 | 530,707 | 531,176 | |||||||||||||||
| Business services | 425,258 | 439,784 | 1,266,478 | 1,303,183 | |||||||||||||||
| Total revenue | 1,299,724 | 1,345,742 | 3,937,267 | 3,991,212 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||
| Cost of equipment sales | 97,559 | 113,282 | 316,697 | 320,191 | |||||||||||||||
| Cost of supplies | 22,611 | 23,843 | 74,365 | 73,381 | |||||||||||||||
| Cost of software | 23,431 | 23,630 | 73,541 | 65,993 | |||||||||||||||
| Cost of rentals | 32,581 | 36,277 | 97,989 | 107,658 | |||||||||||||||
| Financing interest expense | 21,430 | 22,189 | 66,915 | 65,948 | |||||||||||||||
| Cost of support services | 114,074 | 111,521 | 344,767 | 337,822 | |||||||||||||||
| Cost of business services | 326,415 | 335,588 | 985,232 | 1,003,712 | |||||||||||||||
| Selling, general and administrative | 430,650 | 435,292 | 1,296,584 | 1,304,941 | |||||||||||||||
| Research and development | 35,573 | 38,454 | 107,772 | 117,487 | |||||||||||||||
| Restructuring charges and asset impairments | 32,956 | 33,805 | 63,974 | 103,039 | |||||||||||||||
| Goodwill impairment | 45,650 | - | 45,650 | - | |||||||||||||||
| Other interest expense | 28,932 | 29,310 | 86,006 | 86,172 | |||||||||||||||
| Interest income | (1,265 | ) | (393 | ) | (4,702 | ) | (1,851 | ) | |||||||||||
| Other income, net | (10,718 | ) | - | (10,718 | ) | - | |||||||||||||
| Total costs and expenses | 1,199,879 | 1,202,798 | 3,544,072 | 3,584,493 | |||||||||||||||
| Income from continuing operations before income taxes | 99,845 | 142,944 | 393,195 | 406,719 | |||||||||||||||
| Provision for income taxes | (17,087 | ) | 46,880 | 77,319 | 155,302 | ||||||||||||||
| Income from continuing operations | 116,932 | 96,064 | 315,876 | 251,417 | |||||||||||||||
| Gain (loss) from discontinued operations, net of income tax | 60,428 | (2,536 | ) | 57,911 | (8,332 | ) | |||||||||||||
| Net income before attribution of noncontrolling interests | 177,360 | 93,528 | 373,787 | 243,085 | |||||||||||||||
| Less: Preferred stock dividends of subsidiaries | |||||||||||||||||||
| attributable to noncontrolling interests | 4,593 | 4,593 | 13,781 | 13,730 | |||||||||||||||
| Net income - Pitney Bowes Inc. | $ | 172,767 | $ | 88,935 | $ | 360,006 | $ | 229,355 | |||||||||||
| Amounts attributable to Pitney Bowes Inc.: | |||||||||||||||||||
| Income from continuing operations | $ | 112,339 | $ | 91,471 | $ | 302,095 | $ | 237,687 | |||||||||||
| Gain (loss) from discontinued operations | 60,428 | (2,536 | ) | 57,911 | (8,332 | ) | |||||||||||||
| Net income - Pitney Bowes Inc. | $ | 172,767 | $ | 88,935 | $ | 360,006 | $ | 229,355 | |||||||||||
| Basic earnings per share of common stock attributable to | |||||||||||||||||||
| Pitney Bowes Inc. common stockholders (1): | |||||||||||||||||||
| Continuing operations | $ | 0.56 | $ | 0.44 | $ | 1.49 | $ | 1.15 | |||||||||||
| Discontinued operations | 0.30 | (0.01 | ) | 0.29 | (0.04 | ) | |||||||||||||
| Net income - Pitney Bowes Inc. | $ | 0.86 | $ | 0.43 | $ | 1.78 | $ | 1.11 | |||||||||||
| Diluted earnings per share of common stock attributable to | |||||||||||||||||||
| Pitney Bowes Inc. common stockholders (1): | |||||||||||||||||||
| Continuing operations | $ | 0.56 | $ | 0.44 | $ | 1.48 | $ | 1.15 | |||||||||||
| Discontinued operations | 0.30 | (0.01 | ) | 0.28 | (0.04 | ) | |||||||||||||
| Net income - Pitney Bowes Inc. | $ | 0.85 | $ | 0.43 | $ | 1.77 | $ | 1.11 | |||||||||||
| (1) The sum of the earnings per share amounts may not equal the totals above due to rounding. | |||||||||||||||||||
| (2) Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||||||||||||
