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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the year ended December 31, 1993
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 1-3579
PITNEY BOWES INC.
State of Incorporation IRS Employer Identification No.
Delaware 06-0495050
World Headquarters
Stamford, Connecticut 06926-0700
Telephone Number: (203) 356-5000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
Common Stock ($2 par value) New York Stock Exchange
$2.12 Convertible Cumulative New York Stock Exchange
Preference Stock (no par value)
Preference Share Purchase Rights New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
4% Convertible Cumulative Preferred Stock ($50 par value)
Disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is
not contained herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment
to this Form 10-K. [ ]
The Registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months, and (2) has been subject to such filing requirements for the
past 90 days. Yes X No
The aggregate market value of voting stock (common stock and $2.12
preference stock) held by non-affiliates of the Registrant as of March
11, 1994 is $7,065,115,458.
Number of shares of common stock, $2 par value, outstanding as of March
11, 1994 is 158,164,139.
DOCUMENTS INCORPORATED BY REFERENCE:
1. Only the following portions of the Pitney Bowes Inc. 1993 Annual
Report to Stockholders are incorporated by reference into Parts I,
II and IV of this Form 10-K Annual Report.
(a) Financial Statements, pages 27 to 39.
(b) Management's Discussion and Analysis and Summary of Selected
Financial Data on pages 21 to 26 excluding the information on
page 25 relating to Dividend Policy.
(c) Stock Information and Stock Exchanges, on the inside back cover.
2. Pitney Bowes Inc. Notice of the 1994 Annual Meeting and Proxy
Statement dated March 25, 1994 pages 3, 4, 7, 10 to 12, 18 and portions
of pages 2, 5, 6, 8, 9, 13, 17 and 19 are incorporated by reference into
Part III of this Form 10-K Annual Report.
PART I
Item 1. Business
Pitney Bowes Inc. and its subsidiaries (the "company") operates in three
industry segments: business equipment, business supplies and services,
and financial services. The company's operations are in the following
geographic areas: the United States, Europe, and Canada and other
countries. Financial information concerning revenue, operating profit
and identifiable assets by industry segment and geographic area appears
on page 21 of the Pitney Bowes Inc. 1993 Annual Report to Stockholders
and is incorporated herein by reference.
Business Equipment. Business equipment consists of three product
classes: mailing systems, copying systems and voice processing systems.
These products are sold, rented or leased (see "Financial Services") by
the company and through dealers. Revenue for each product class is
included in the financial information incorporated herein by reference.
Mailing systems include postage meters, parcel registers, mailing
machines, manifest systems, letter and parcel scales, mail openers,
mailroom furniture, folders, paper handling and shipping equipment, and
facsimile machines.
Copying systems include a wide range of copying systems and
supplies.
Voice processing systems include small work group and central
dictation and voice processing systems, communications recorders and
portable and desktop dictation units of the company's Dictaphone
subsidiary.
Business Supplies and Services. Business supplies and services includes
equipment and supplies used to encode and track price, content, item
identification and other merchandise information manufactured and
marketed by the company's Monarch Marking Systems, Inc. ("Monarch")
subsidiary. In addition, this segment includes facilities management
services for a variety of business support functions, including
correspondence mail and reprographics management, high volume automated
mail center management and related activities such as facsimile, supplies
distribution and records management provided by the company's Pitney
Bowes Management Services subsidiary.
In October 1993, the company acquired all outstanding shares of
Ameriscribe Corporation ("Ameriscribe"). Ameriscribe is a nationwide
provider of on-site reprographics, mailroom and other office services to
industrial corporations and professional service firms on a contract
basis. The company consolidated this unit with its facilities management
business operated through its wholly-owned subsidiary, Pitney Bowes
Management Services, Inc.
In 1992, the company sold its Wheeler Group Inc. ("Wheeler")
subsidiary, a direct mail marketer of office supplies. Wheeler has been
classified in the Consolidated Statement of Income as a discontinued
operation. (See Note 11, "Acquisitions and discontinued operations", of
the Notes to Consolidated Financial Statements in the Pitney Bowes Inc.
1993 Annual Report to Stockholders which information is incorporated
herein by reference).
Financial Services. The financial services segment includes the
company's worldwide financing operations. The company provides lease
financing for its products as well as other financial services for the
commercial and industrial markets. Lease financing transactions and
other financial services are executed through the company's wholly-owned
subsidiaries: Pitney Bowes Credit Corporation, including Colonial
Pacific Leasing Corporation, Pitney Bowes Real Estate Financing
Corporation and Atlantic Mortgage & Investment Corporation in the United
States; Pitney Bowes Finance PLC in the U.K.; Adrema Leasing in Germany;
Pitney Bowes Finance S.A. in France and Pitney Bowes Credit Australia
Ltd. The company's subsidiary, Pitney Bowes of Canada Ltd., also has a
financing division through which leasing arrangements are made available
to its customers. The finance operations financed 34 percent, 33 percent
and 32 percent of consolidated sales in 1993, 1992 and 1991,
respectively.
Since the first quarter of 1993, the company has continued to phase
out the business of financing non-Pitney Bowes equipment outside the
United States. The company is also continuing an inquiry and evaluation
of the conduct by former management personnel of its German leasing
business. The company expects to complete its inquiry by the end of the
second quarter of 1994. (See Management's Discussion and Analysis in the
Pitney Bowes Inc. 1993 Annual Report to Stockholders which information is
incorporated herein by reference). In the United States the company
continues to lease a broad range of other commercial and industrial
products. Products financed include both commercial and non-commercial
aircraft, over-the-road trucks and trailers, rail cars, and high-
technology equipment such as data processing and communications equipment
as well as commercial real estate properties. The finance operations
have also participated, on a select basis, in certain other types of
financing activities including syndication of certain lease transactions
which do not satisfy financial services' investment criteria, senior
secured loans in connection with acquisition, leveraged buyout and
recapitalization financing and certain project financings as well as
mortgage servicing.
Financial services' borrowing strategy is to use a balanced mix of
debt maturities, variable- and fixed-rate debt and interest rate swap
agreements to control its sensitivity to interest rate volatility. The
financial services segment may borrow through the sale of commercial
paper, under its confirmed bank lines of credit and by private and public
offerings of intermediate- or long-term debt securities. While the
company's funding strategy may reduce sensitivity to interest rate
changes over the long-term, effective interest costs have been and will
continue to be impacted by interest rate changes. The company
periodically adjusts prices on its new leasing and financing transactions
to reflect changes in interest rates; however, the impact of these rate
changes on revenue is usually less immediate than the impact on borrowing
costs.
Nonrecurring Charges. In December 1989, the company announced a series
of transition initiatives designed to improve the company's
competitiveness, enhance business focus and allow for the transition to
a new generation of advanced systems products. In support of these
initiatives, the company recorded a one-time, pretax charge of $110
million against fourth-quarter 1989 earnings. The three-year transition
program included a reduction in the company's worldwide workforce
approximating 1,500 positions, a change of employee skill mix, a
reduction in the number of product distribution centers and a
streamlining of administrative systems and equipment service
organizations. The company also established a dedicated United States
Copier Division responsible for sourcing, selling, marketing, servicing
and supporting the company's copier products.
In September 1990, the company changed its copier marketing strategy
and announced plans to discontinue the remanufacture of used copier
equipment. The copier organization now concentrates on new, higher-
margin copiers consistent with its marketing strategy directed at serving
large corporations and multi-unit installations. Due to this change in
strategy and the resultant discontinuance of the equipment
remanufacturing process, the company adjusted the estimated useful life
of copiers from five years to three years and established a reserve for
the disposal of copiers which previously would have been remanufactured,
employee severance payments and facility closing costs. The aggregate
one-time, pretax charge against 1990 third-quarter earnings was $86.5
million.
Support Services. The company maintains extensive field service
organizations in the United States and certain other countries to provide
support services to customers who have rented, leased or purchased
equipment. Such support services, provided primarily on the basis of
annual maintenance contracts, accounted for 15 percent of revenue in each
of the last three years.
Marketing. The company's products and services are marketed through an
extensive network of offices in the United States, and through a number
of subsidiaries and independent distributors and dealers in many
countries throughout the world as well as through direct marketing and
outbound telemarketing. The company sells to a variety of business,
governmental, institutional and other organizations. It has a broad base
of customers, and is not dependent upon any one customer or type of
customer for a significant part of its business. The company does not
have significant backlog or seasonality relating to its businesses.
Operations Outside the United States. The company's manufacturing
operations outside the United States are in Australia, Canada, Hong Kong,
Mexico, Switzerland, Singapore and the United Kingdom.
Competition. The company has historically been a leading supplier of
certain products and services in its business segments, particularly
postage meters and mailing machines, price marking supplies and
equipment, and voice processing systems. However, in all three segments
it has strong competition from a number of companies. In particular, it
is facing competition in many countries for new placements from several
postage meter and mailing machine suppliers, and its mailing systems
products face some competition from products and services offered as
alternative means of message communications. Also, the facilities
management business, a market leader in providing mail and related
support services to the corporate, financial services, and professional
services markets, competes against national, regional and local firms
specializing in facilities management. The company believes that its
long experience and reputation for product quality, and its sales and
support service organizations are important factors in influencing
customer choices with respect to its products and services.
The financing business is highly competitive with aggressive rate
competition. Leasing companies, commercial finance companies, commercial
banks and other financial institutions compete, in varying degrees, in
the several markets in which the finance operations do business and range
from very large, diversified financial institutions to many small,
specialized firms. In view of the market fragmentation and absence of
any dominant competitors which result from such competition, it is not
possible to provide a meaningful description of the finance operations'
competitive position in these markets.
Research and Development/Patents. The company has research and
development programs that are directed towards developing new products
and improving the economy and efficiency of its operations, including its
production and service methods. Expenditures on research and development
totaled $99.0 million, $101.6 million and $114.0 million in 1993, 1992
and 1991, respectively.
As a result of its research and development efforts, the company has
been awarded a number of patents with respect to several of its existing
and planned products. However, the company believes its businesses are
not materially dependent on any one patent or any group of related
patents. The company also believes its businesses are not materially
dependent on any one license or any group of related licenses.
Material Supplies and Environmental Protection. The company believes it
has adequate sources for most parts and materials for the products it
manufactures. However, products manufactured by the company rely to an
increasing extent on microelectronic components, and temporary shortages
of these components have occurred from time to time due to the demands by
many users of such components.
The company purchases copying, facsimile, scales, desktop dictating
and transcribing machines, and portable dictating machines primarily from
Japanese suppliers. The company believes that it has adequate sources
available to it for the foreseeable future for such products.
The company is subject to extensive and changing federal, state,
local and other countries environmental laws and regulations, including
those relating to the operations or ownership of real property and to the
use, handling, storage, discharge and disposal of hazardous substances.
Expenditures relating to environmental laws and regulations do not have,
and are not expected to have, a material adverse effect on capital
expenditures, or on the company's financial position or results of
operations.
Employee Relations. At December 31, 1993, 32,539 persons were employed
by the company, 26,523 in the United States and 6,016 outside the United
States. Employee relations are considered to be very satisfactory. The
great majority of employees are not represented by any labor union.
Management follows the policy of keeping employees informed of its
decisions, and encourages and implements employee suggestions whenever
practicable.
Item 2. Properties
The company's World Headquarters and certain other office and
manufacturing facilities are located in Stamford, Connecticut. The
company maintains research and development operations in Stratford,
Connecticut as well as near Dayton, Ohio and a corporate engineering and
technology center in Shelton, Connecticut. A sales and service training
center is located near Atlanta, Georgia. The company is building a new
facility to house its Shipping and Weighing Systems Division in Shelton,
Connecticut, which is expected to be completed in 1995. The company
believes that its current and planned manufacturing, administrative and
sales office properties are adequate for the needs of all three of its
business segments.
Business Equipment. Business equipment products are manufactured in a
number of plants principally in Connecticut, as well as in: Melbourne,
Florida; Harlow, England; Pickering, Ontario, Canada; and Killwangen,
Switzerland. Most of these facilities are owned by the company. Sales
and support services offices, substantially all of which are leased, are
located throughout the United States and in a number of other countries.
Business Supplies and Services. The company's Monarch subsidiary has
executive offices and production facilities near Dayton, Ohio and
facilities in: Pickering, Ontario, Canada; Mexico City, Mexico; Sydney,
Australia; Singapore and Hong Kong. Production facilities of the Pitney
Bowes Marking Systems Ltd. subsidiary are located in a leased office and
manufacturing building in Harlow, England. A number of Monarch sales and
support services offices, substantially all of which are leased, are
located throughout the United States and in a number of other countries.
The company's Pitney Bowes Management Services subsidiary is
headquartered in Stamford, Connecticut and leases facilities in 25 cities
located throughout the United States as well as one leased facility in
Toronto, Ontario, Canada.
Financial Services. Pitney Bowes Credit Corporation leases executive and
administrative offices in Norwalk, Connecticut; Jacksonville, Florida;
and Tualatin, Oregon. Executive and administrative offices of the
financing operations outside the United States are maintained in London,
England; Heppenheim, Germany; Paris, France; Mississauga, Ontario,
Canada; and Chatswood, Australia. A number of leased regional and
district sales offices are located throughout the United States, Canada
and Germany.
Item 3. Legal Proceedings
The company is a defendant in a number of lawsuits, none of which will,
in the opinion of management and legal counsel, have a material adverse
effect on the company's financial position or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Executive Officers of the Registrant
Executive
Officer
Name Age Title Since
George B. Harvey 62 Chairman, President and 1967
Chief Executive Officer
Carmine F. Adimando 49 Vice President - Finance 1982
and Administration,
and Treasurer
Marc C. Breslawsky 51 President, Pitney Bowes 1985
Office Systems, a division
Michael J. Critelli 45 President - Pitney Bowes 1988
Financial Services,
a division
Steven J. Green 42 Vice President - Controller 1988
Hiro R. Hiranandani 56 President - Pitney Bowes 1981
Mailing Systems, a division
Paul Reece 57 Vice President - Operations 1987
and Technology
Douglas A. Riggs 49 Vice President - Communications, 1988
Planning, Secretary and
General Counsel
Carole F. St. Mark 51 President - Pitney Bowes 1985
Logistics Systems and Business
Services, a division
Johnna G. Torsone 43 Vice President - Personnel 1993
There is no family relationship among the above officers, all of whom
have served in various corporate, division or subsidiary positions with
the company for at least the past five years except for Johnna G.
Torsone. Prior to joining the company in October 1990, Ms. Torsone was
a partner with the New York law firm of Parker, Chapin, Flattau & Klimpl
where she practiced employment and labor law for 14 years.
PART II
Item 5. Market for the Registrant's Common Stock and Related
Stockholders' Matters
The sections entitled "Stock Information" and "Stock Exchanges" on the
inside back cover of the Pitney Bowes Inc. 1993 Annual Report to
Stockholders are incorporated herein by reference. At December 31, 1993,
the company had 31,189 common stockholders of record.
Item 6. Selected Financial Data
The section entitled "Summary of Selected Financial Data" on page 26 of
the Pitney Bowes Inc. 1993 Annual Report to Stockholders is incorporated
herein by reference.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The section entitled "Management's Discussion and Analysis" on pages 21
to 25 of the Pitney Bowes Inc. 1993 Annual Report to Stockholders is
incorporated herein by reference, except for the section on page 25
relating to "Dividend Policy."
Item 8. Financial Statements and Supplementary Data
The financial statements, together with the report thereon of Price
Waterhouse dated February 1, 1994, appearing on pages 27 to 39 of the
Pitney Bowes Inc. 1993 Annual Report to Stockholders are incorporated
herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
None.
PART III
Item 10. Directors and Executive Officers of the Registrant
Except for the information regarding the company's executive officers
(see "Executive Officers of the Registrant" on page 7), the information
called for by this Item is incorporated herein by reference to the
sections entitled "Election of Directors" and "Security Ownership of
Directors and Executive Officers" on pages 2 to 6 of the Pitney Bowes
Inc. Notice of the 1994 Annual Meeting and Proxy Statement.
Item 11. Executive Compensation
The sections entitled "Directors' Compensation", "Executive Officer
Compensation", "Severance and Change of Control Arrangements" and
"Pension Benefits" on pages 7 to 13, and 17 to 19 of the Pitney Bowes
Inc. Notice of the 1994 Annual Meeting and Proxy Statement are
incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The section entitled "Security Ownership of Directors and Executive
Officers" on pages 6 and 7 of the Pitney Bowes Inc. Notice of the 1994
Annual Meeting and Proxy Statement is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
None.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) 1. Financial statements - see Item 8 on page 8 and "Index to
Financial Statements and Schedules" on page 16.
2. Financial statement schedules - see "Index to Financial
Statements and Schedules" on page 16.
3. Exhibits (numbered in accordance with Item 601 of Regulation
S-K).
Reg. S-K Status or Incorporation
Exhibits Description by Reference
(3)(a) Restated Certificate of Incorporated by reference to
Incorporation, as amended Exhibit (3a) to Form 10-K as
filed with the Commission on
March 30, 1993. (Commission
file number 1-3579)
(b) By-laws Incorporated by reference to
Exhibit (1) to Form 8-K as
filed with the Commission on
March 13, 1993. (Commission
file number 1-3579)
(4)(a) Form of Indenture dated as Incorporated by reference to
of November 15, 1987 Exhibit (4a) to Form 10-K as
between the company and filed with the Commission on
Chemical Bank, as trustee March 24, 1988. (Commission
file number 1-3579)
(b) Form of Debt Securities Incorporated by reference to
Exhibit (4b) to Form 10-K as
filed with the Commission on
March 24, 1988. (Commission
file number 1-3579)
(c) Form of First Supplemental Incorporated by reference to
Indenture dated as of Exhibit (1) to Form 8-K as
June 1, 1989 between the filed with the Commission on
company and Chemical Bank, June 16, 1989. (Commission
as Trustee file number 1-3579)
(d) Form of Indenture dated as Incorporated by reference to
of April 15, 1990 between Exhibit (4.1) to Registration
the company and Chemical Statement on Form S-3
Bank, as successor to (No. 33-33948) as filed with
Manufacturers Hanover the Commission on March 28,
Trust Company, as Trustee 1990.
(e) Forms of Debt Securities Incorporated by reference to
Exhibit (4) to Form 10-Q as
filed with the Commission on
May 14, 1990. (Commission
file number 1-3579)
(f) Form of Indenture dated as Incorporated by reference to
of May 1, 1985 between Exhibit (4a) to Registration
Pitney Bowes Credit Statement on Form S-3
Corporation and Bankers (No. 2-97411) as filed with the
Trust Company, as Trustee Commission on May 1, 1985.
(g) Letter Agreement between Incorporated by reference to
Pitney Bowes Inc. and Exhibit (4b) to Registration
Bankers Trust Company, as Statement on Form S-3
Trustee (No. 2-97411) as filed with the
Commission on May 1, 1985.
(h) Form of First Supplemental Incorporated by reference to
Indenture dated as of Exhibit (4b) to Registration
December 1, 1986 between Statement on Form S-3
Pitney Bowes Credit (No. 33-10766) as filed with the
Corporation and Bankers Commission on December 12, 1986.
Trust Company, as Trustee
(i) Form of Second Incorporated by reference to
Supplemental Indenture Exhibit (4c) to Registration
dated as of February 15, Statement on Form S-3
1989 between Pitney Bowes (No. 33-27244) as filed with the
Credit Corporation and Commission on February 24, 1989.
Bankers Trust Company,
as Trustee
(j) Form of Third Supplemental Incorporated by reference to
Indenture dated as of Exhibit (1) to Form 8-K as
May 1, 1989 between Pitney filed with the Commission on
Bowes Credit Corporation May 16, 1989. (Commission
and Bankers Trust Company, file number 1-3579)
as Trustee
The company has outstanding certain other long-term
indebtedness. Such long-term indebtedness does not exceed 10%
of the total assets of the company; therefore, copies of
instruments defining the rights of holders of such indebtedness
are not included as exhibits. The company agrees to furnish
copies of such instruments to the Securities and Exchange
Commission upon request.
Executive Compensation Plans:
(10)(a) Retirement Plan for Incorporated by reference to
Directors of Pitney Exhibit (10a) to Form 10-K as
Bowes Inc. filed with the Commission on
March 30, 1993. (Commission
file number 1-3579)
(b) Deferred Compensation Incorporated by reference to
Plan for Directors Exhibit (10b) to Form 10-K as
filed with the Commission on
March 30, 1993. (Commission
file number 1-3579)
(c) Pitney Bowes Inc. Incorporated by reference to
Directors' Stock Plan Exhibit (10a) to Form 10-K as
filed with the Commission on
March 25, 1992. (Commission
file number 1-3579)
(d) Pitney Bowes 1991 Stock Incorporated by reference to
Plan Exhibit (10b) to Form 10-K as
filed with the Commission on
March 25, 1992. (Commission
file number 1-3579)
(e) Pitney Bowes Inc. Key Incorporated by reference to
Employees' Incentive Plan Exhibit (10c) to Form 10-K as
(as amended and restated) filed with the Commission on
March 25, 1992. (Commission
file number 1-3579)
(f) 1979 Pitney Bowes Stock Incorporated by reference to
Option Plan (as amended Exhibit (10d) to Form 10-K as
and restated) filed with the Commission on
March 25, 1992. (Commission
file number 1-3579)
(g) Pitney Bowes Severance Incorporated by reference to
Plan, as amended, dated Exhibit (10) to Form 10-K as
December 12, 1988 filed with the Commission on
March 23, 1989. (Commission
file number 1-3579)
(11) Statement re computation Exhibit (i)
of per share earnings
(12) Computation of ratio of Exhibit (ii)
earnings to fixed charges
(13) Portions of annual report Exhibit (iii)
to security holders
(21) Subsidiaries of the Exhibit (iv)
registrant
(23) Consent of experts and Exhibit (v)
counsel
(b) No reports on Form 8-K were filed for the three months ended
December 31, 1993.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Pitney Bowes Inc.
By /s/ George B. Harvey
(George B. Harvey)
Chairman, President and Chief
Executive Officer
Date March 30, 1994
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
Signature Title Date
/s/ George B. Harvey Chairman, President March 30, 1994
George B. Harvey and Chief Executive
Officer - Director
/s/ Carmine F. Adimando Vice President-Finance March 30, 1994
Carmine F. Adimando and Administration, and
Treasurer (principal
financial officer)
/s/ Steven J. Green Vice President-Controller March 30, 1994
Steven J. Green (principal accounting
officer)
/s/ Linda G. Alvarado Director March 30, 1994
Linda G. Alvarado
/s/ William E. Butler Director March 30, 1994
William E. Butler
/s/ Colin G. Campbell Director March 30, 1994
Colin G. Campbell
/s/ John C. Emery, Jr. Director March 30, 1994
John C. Emery, Jr.
/s/ Charles E. Hugel Director March 30, 1994
Charles E. Hugel
/s/ David T. Kimball Director March 30, 1994
David T. Kimball
Signature Title Date
Director March 30, 1994
Leroy D. Nunery
/s/ Phyllis S. Sewell Director March 30, 1994
Phyllis S. Sewell
/s/ Arthur R. Taylor Director March 30, 1994
Arthur R. Taylor
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
The additional financial data should be read in conjunction with the
financial statements in the Pitney Bowes Inc. 1993 Annual Report to
Stockholders. Schedules not included with this additional financial data
have been omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto. Also,
separate financial statements of less than 100 percent owned companies,
which are accounted for by the equity method, have been omitted because
they do not constitute significant subsidiaries.
ADDITIONAL FINANCIAL DATA
Page
Pitney Bowes Inc.:
Report of independent accountants on financial
statement schedules 17
Financial statement schedules for the years 1991 - 1993:
Valuation and qualifying accounts and
reserves (Schedule VIII) 18
Short-term borrowings (Schedule IX) 19
Supplementary income statement information
(Schedule X) 20
REPORT OF INDEPENDENT ACCOUNTANTS ON
FINANCIAL STATEMENT SCHEDULES
To the Board of Directors
of Pitney Bowes Inc.
Our audits of the consolidated financial statements referred to in our
report dated February 1, 1994 appearing on page 39 of the Pitney Bowes
Inc. 1993 Annual Report to Stockholders (which report and consolidated
financial statements are incorporated by reference in this Annual Report
on Form 10-K) also included an audit of the financial statement
schedules listed by reference in Item 14(a)2 of this Form 10-K. In our
opinion, these financial statement schedules present fairly, in all
material respects, the information set forth therein when read in
conjunction with the related consolidated financial statements.
Price Waterhouse
Stamford, Connecticut
February 1, 1994
PITNEY BOWES INC.
SCHEDULE VIII - VALUATION AND QUALIFYING
ACCOUNTS AND RESERVES
FOR THE YEARS ENDED DECEMBER 31, 1991 TO 1993
(Dollars in thousands)
Additions
Balance at charged to Balance
beginning of costs and at end
Description year expenses Deductions of year
Allowance for doubtful accounts
1993 $16,578 $ 9,024(1) $ 8,911(2) $ 16,691
1992 $17,786 $ 4,364 $ 5,572(2) $ 16,578
1991 $14,352 $10,741 $ 7,307(2) $ 17,786
Allowance for credit losses on finance receivables
1993 $96,975 $84,524 $64,987(2) $116,512
1992 $88,703 $85,642 $77,370(2) $ 96,975
1991 $84,514 $70,760 $66,571(2) $ 88,703
Reserve for transition costs(4)
1993 $ 1,627 $ - $ 1,283(3) $ 344
1992 $ 8,835 $ - $ 7,208(3) $ 1,627
1991 $30,130 $ - $21,295(3) $ 8,835
Valuation allowance for deferred tax asset(4)
1993 $28,800 $ 2,059 $ 4,884 $ 25,975
1992 $ - $29,365 $ 565 $ 28,800
(1) Includes $1,300 of additions applicable to a business at
acquisition.
(2) Principally uncollectible accounts written off.
(3) Amounts paid.
(4) Included in balance sheet as a liability.
PITNEY BOWES INC.
SCHEDULE IX - SHORT-TERM BORROWINGS
FOR THE YEARS ENDED DECEMBER 31, 1991 TO 1993
(Dollars in thousands)
Weighted
Weighted average
Balance average Maximum Average interest
at end interest amount amount rate during
Description of year rate outstanding outstanding(1) the year (1)
Overdrafts-banks
1993 $ 9,369 7.8% $ 25,824 $ 9,398 8.4%
1992 $ 14,536 9.5% $ 14,787 $ 7,540 9.7%
1991 $ 7,940 9.6% $ 22,432 $ 10,459 7.8%
Notes payable
1993 $1,990,995 3.2% $1,990,995 $1,870,972 3.4%
1992 $1,794,709 4.5% $1,944,780 $1,773,607 4.5%
1991 $1,620,446 5.2% $1,620,446 $1,457,174 6.7%
(1) The average amount outstanding and weighted average interest rate
during the year were calculated based on daily or monthly borrowings
outstanding.
PITNEY BOWES INC.
SCHEDULE X - SUPPLEMENTARY INCOME
STATEMENT INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 1991 TO 1993
(Dollars in thousands)
Charged to costs and expenses
Item 1993 1992 1991
Maintenance (1) $53,279 $47,387 $41,736
(1) Excludes costs associated with equipment maintenance agreements sold
to customers.