10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2013

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number: 1-3579

PITNEY BOWES INC.

(Exact name of registrant as specified in its charter)

Delaware	06-0495050
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1 Elmcroft Road, Stamford, Connecticut	06926-0700
(Address of principal executive offices)	(Zip Code)

(203) 356-5000

(Registrant’s telephone number, including area code)

Indicate by check mark whether 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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

As of November 1, 2013, 201,992,623 shares of common stock, par value $1 per share, of the registrant were outstanding.

PITNEY BOWES INC.

INDEX

		Page Number
Part I - Financial Information:
Item 1:	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income (Loss) for the Three and Nine Months Ended September 30, 2013 and 2012	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2013 and 2012	4
	Condensed Consolidated Balance Sheets at September 30, 2013 and December 31, 2012	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	40
Item 4:	Controls and Procedures	40
Part II - Other Information:
Item 1:	Legal Proceedings	41
Item 1A:	Risk Factors	41
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 6:	Exhibits	41
Signatures		42

2

PART I. FINANCIAL INFORMATION

Item 1: Financial Statements

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited; in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue:
Equipment sales	$	201,830		$	199,609		$	634,779		$	618,620
Supplies	69,696			66,878			216,254			213,665
Software	98,164			93,476			285,658			302,377
Rentals	128,225			137,149			391,590			414,922
Financing	113,955			123,999			346,646			373,695
Support services	166,785			176,769			505,226			529,615
Business services	160,131			151,909			458,061			446,654
Total revenue	938,786			949,789			2,838,214			2,899,548
Costs and expenses:
Cost of equipment sales	92,307			95,008			307,992			278,457
Cost of supplies	21,840			20,689			67,794			65,423
Cost of software	29,698			29,227			80,093			85,023
Cost of rentals	25,612			25,182			79,791			87,258
Financing interest expense	20,306			19,604			59,979			61,385
Cost of support services	103,004			107,074			315,275			334,274
Cost of business services	112,447			103,230			322,970			298,689
Selling, general and administrative	355,202			370,935			1,067,394			1,111,144
Research and development	24,769			30,226			81,351			87,810
Restructuring charges and asset impairments	34,909			—			53,940			(980		)
Other interest expense	27,508			27,541			89,594			87,261
Interest income	(1,457		)	(2,057		)	(4,507		)	(5,793		)
Other expense, net	—			—			25,121			1,138
Total costs and expenses	846,145			826,659			2,546,787			2,491,089
Income from continuing operations before income taxes	92,641			123,130			291,427			408,459
Provision for income taxes	11,370			30,590			55,530			85,108
Income from continuing operations	81,271			92,540			235,897			323,351
(Loss) income from discontinued operations, net of tax	(82,204		)	(11,413		)	(169,369		)	25,257
Net (loss) income before attribution of noncontrolling interests	(933		)	81,127			66,528			348,608
Less: Preferred stock dividends attributable to noncontrolling interests	4,594			4,594			13,782			13,782
Net (loss) income - Pitney Bowes Inc.	$	(5,527	)	$	76,533		$	52,746		$	334,826
Amounts attributable to common stockholders:
Net income from continuing operations	$	76,677		$	87,946		$	222,115		$	309,569
(Loss) income from discontinued operations, net of tax	(82,204		)	(11,413		)	(169,369		)	25,257
Net (loss) income - Pitney Bowes Inc.	$	(5,527	)	$	76,533		$	52,746		$	334,826
Basic earnings per share attributable to common stockholders (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.55
Discontinued operations	(0.41		)	(0.06		)	(0.84		)	0.13
Net (loss) income - Pitney Bowes Inc.	$	(0.03	)	$	0.38		$	0.26		$	1.67
Diluted earnings per share attributable to common stockholders (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.54
Discontinued operations	(0.40		)	(0.06		)	(0.84		)	0.13
Net (loss) income - Pitney Bowes Inc.	$	(0.03	)	$	0.38		$	0.26		$	1.66
Dividends declared per share of common stock	$	0.1875		$	0.375		$	0.75		$	1.125

(1) The sum of earnings per share amounts may not equal the totals due to rounding

See Notes to Condensed Consolidated Financial Statements

3

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; in thousands)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Net (loss) income - Pitney Bowes Inc.	$	(5,527	)	$	76,533	$	52,746		$	334,826
Other comprehensive income, net of tax:
Net unrealized gain on cash flow hedges, net of tax of $41, $21, $615 and $374, respectively	62			25		962			578
Net unrealized (loss) gain on investment securities, net of tax of $(142), $377, $(2,984) and $618, respectively	(222		)	589		(4,667		)	967
Amortization of pension and postretirement costs, net of tax of $4,347, $6,404, $15,613 and $20,371, respectively	7,950			12,151		28,943			35,115
Foreign currency translations	19,140			19,025		(40,618		)	(883		)
Other comprehensive income (loss)	26,930			31,790		(15,380		)	35,777
Total comprehensive income - Pitney Bowes Inc.	$	21,403		$	108,323	$	37,366		$	370,603

See Notes to Condensed Consolidated Financial Statements

4

PITNEY BOWES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except share and per share data)

	September 30, 2013			December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	759,636		$	913,276
Short-term investments	20,471			36,611
Accounts receivable (net of allowance of $15,230 and $20,219, respectively)	418,035			728,250
Finance receivables (net of allowance of $25,007 and $25,484, respectively)	1,120,068			1,188,292
Inventories	134,266			179,678
Current income taxes	28,419			51,836
Other current assets and prepayments	173,068			114,184
Assets held for sale	550,641			—
Total current assets	3,204,604			3,212,127
Property, plant and equipment, net	240,609			385,377
Rental property and equipment, net	230,098			241,192
Finance receivables (net of allowance of $11,489 and $14,610, respectively)	947,028			1,026,489
Investment in leveraged leases	34,858			34,546
Goodwill	1,729,178			2,136,138
Intangible assets, net	128,588			166,214
Non-current income taxes	96,714			94,434
Other assets	538,255			563,374
Total assets	$	7,149,932		$	7,859,891
LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	1,501,189		$	1,809,226
Current income taxes	291,930			240,681
Notes payable and current portion of long-term obligations	299,570			375,000
Advance billings	418,231			452,130
Liabilities related to assets held for sale	118,177			—
Total current liabilities	2,629,097			2,877,037
Deferred taxes on income	19,192			69,222
Tax uncertainties and other income tax liabilities	157,102			145,881
Long-term debt	3,351,020			3,642,375
Other non-current liabilities	685,914			718,375
Total liabilities	6,842,325			7,452,890
Noncontrolling interests (Preferred stockholders’ equity in subsidiaries)	296,370			296,370
Commitments and contingencies (See Note 14)
Stockholders’ equity:
Cumulative preferred stock, $50 par value, 4% convertible	4			4
Cumulative preference stock, no par value, $2.12 convertible	608			648
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued)	323,338			323,338
Additional paid-in capital	201,643			223,847
Retained earnings	4,646,593			4,744,802
Accumulated other comprehensive loss	(696,593		)	(681,213		)
Treasury stock, at cost (121,462,568 and 122,453,865 shares, respectively)	(4,464,356		)	(4,500,795		)
Total Pitney Bowes Inc. stockholders’ equity	11,237			110,631
Total liabilities, noncontrolling interests and stockholders’ equity	$	7,149,932		$	7,859,891

See Notes to Condensed Consolidated Financial Statements

5

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

	Nine Months Ended September 30,
	2013			2012
Cash flows from operating activities:
Net income before attribution of noncontrolling interests	$	66,528		$	348,608
Restructuring payments	(41,353		)	(60,746		)
Special pension plan contributions	—			(95,000		)
Tax payments related to sale of leveraged lease assets	—			(99,249		)
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill impairment	101,415			18,315
Loss on disposal of businesses	35,315			—
Gain on sale of leveraged lease assets, net of tax	—			(12,886		)
Proceeds from settlement of derivative instruments	4,838			—
Depreciation and amortization	167,377			191,507
Stock-based compensation	12,061			13,505
Restructuring charges and asset impairments	55,771			11,060
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	111,549			58,135
(Increase) decrease in finance receivables	128,812			144,442
(Increase) decrease in inventories	36,967			(7,620		)
(Increase) decrease in other current assets and prepayments	(13,588		)	(20,426		)
Increase (decrease) in accounts payable and accrued liabilities	(192,373		)	(157,156		)
Increase (decrease) in current and non-current income taxes	11,861			38,761
Increase (decrease) in advance billings	(23,179		)	(1,551		)
Increase (decrease) in other operating capital, net	31,559			34,929
Net cash provided by operating activities	493,560			404,628
Cash flows from investing activities:
Short-term and other investments	2,162			(23,250		)
Capital expenditures	(103,392		)	(127,816		)
Proceeds from sale of leveraged lease assets	—			105,506
Net investment in external financing	(1,609		)	(134		)
Net proceeds from sale of businesses	2,627			—
Reserve account deposits	(16,962		)	(15,373		)
Net cash used in investing activities	(117,174		)	(61,067		)
Cash flows from financing activities:
Proceeds from the issuance of long-term obligations, net of fees and discounts of $13,387	411,613			—
Principal payments of long-term obligations	(779,637		)	(550,000		)
Proceeds from the issuance of common stock under employee stock-based compensation plans	6,499			6,989
Dividends paid to stockholders	(150,955		)	(225,282		)
Dividends paid to noncontrolling interests	(9,188		)	(9,188		)
Net cash used in financing activities	(521,668		)	(777,481		)
Effect of exchange rate changes on cash and cash equivalents	(8,358		)	2,471
Decrease in cash and cash equivalents	(153,640		)	(431,449		)
Cash and cash equivalents at beginning of period	913,276			856,238
Cash and cash equivalents at end of period	$	759,636		$	424,789
Cash interest paid	$	162,938		$	170,119
Cash income tax payments, net of refunds	$	110,396		$	145,090

See Notes to Condensed Consolidated Financial Statements

6

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

1. Description of Business and Basis of Presentation

Pitney Bowes Inc. and its subsidiaries (we, us, our or the company) is a global provider of technology solutions for small, mid-sized and large firms that help them connect to customers to build loyalty and grow revenue. We deliver our solutions on open platforms to best organize, analyze and apply public and proprietary data to two-way customer communications. We offer solutions for direct mail, transactional mail and call center communications, along with digital channel messaging for the Web, email and mobile applications. We conduct our business activities in five reporting segments. See Note 2 for information regarding our reportable segments.

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, 2012 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 state fairly 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, 2013.

During the third quarter of 2013, we entered into an agreement to sell the North America Management Services operations (PBMS NA) and our Nordic furniture business. In the second quarter of 2013, we entered into two separate agreements to sell the International Management Services business (PBMSi) and completed the sale of our International Mailing Services (IMS) operations related to the international delivery of mail and catalogs. PBMS (collectively PBMS NA and PBMSi), the Nordic furniture business and IMS are presented as discontinued operations in the Condensed Consolidated Statements of Income (Loss). The cash flows from discontinued operations for the nine months ended September 30, 2013 and 2012 are not separately stated and classified in the accompanying Condensed Consolidated Statements of Cash Flows. See Note 4 for additional information.

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, 2012 (the 2012 Annual Report).

Changes in Segment Presentation

As a result of certain organizational changes designed to realign our business units to reflect the clients served and how we review, analyze, measure and manage our operations, we have revised our business segment reporting (see Note 2). We have recast historical segment results to conform to our current segment presentation and to exclude discontinued operations.

Revision of Prior Period Amounts

During the third quarter of 2013, we determined that certain revenue previously reported as rentals revenue included a service component and should have been classified as support services revenue, and that certain research and development costs should have been classified as cost of software. Accordingly, the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30,2012 have been revised to reflect the correct classification, resulting in a decrease in rentals revenue and corresponding increase in support services revenue of $5 million and $13 million, respectively, and a decrease in research and development expenses and a corresponding increase in cost of software of $6 million and $17 million, respectively. These revisions did not impact previously reported total revenue, total costs and expenses, net income or earnings per share amounts.

We determined that the effect of these revisions was not material to any of our previously issued financial statements and will revise our previously issued financial statements to reflect these reclassification adjustments in future filings.

New Accounting Pronouncements

In January 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01).ASU 2013-01 requires an entity to disclose gross and net information about transactions that are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement, regardless of whether the transactions are actually offset in the statement of financial position. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The amounts impacting our disclosure were immaterial at September 30, 2013 and December 31, 2012.

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). ASU 2013-02 requires an entity to present either parenthetically on the face of the financial statements, or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The new standard is effective for annual

7

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of this standard resulted in additional disclosures, but did not impact our financial condition, results of operations or cash flows.

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 provides explicit guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryfoward exists. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect the application of this new guidance will have a material impact on our financial position.

Statement of Cash Flows

During the fourth quarter of 2012, we determined that changes in certain investment-related working capital accounts that were classified as cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows should have been classified as cash flows from investing activities. Accordingly, the Condensed Consolidated Statement of Cash Flows for the period ended September 30, 2012 has been revised to reflect the correct classification of cash flows, resulting in a decrease in cash provided by operating activities and a corresponding increase in cash provided by investing activities of $35 million.

2. Segment Information

During the third quarter of 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect the clients served and how we review, analyze, measure and manage our operations. There were no changes to the Small & Medium Business Solutions group, but certain business activities within our Enterprise Business Solutions group were consolidated under a new reporting segment, Digital Commerce Solutions. Historical segment results have been recast to conform to our current presentation and to exclude discontinued operations (see Note 4). The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in areas outside North America.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed sorting and production print equipment and production mail systems to large enterprise clients to process inbound and outbound mail.

Presort Services: Includes worldwide revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts.

Digital Commerce Solutions:

Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software; (ii) direct marketing services for targeted clients; (iii) our digital mail delivery service offering (Volly^TM); and (iv) our cross-border e-commerce solutions.

Segment earnings before interest and taxes (EBIT) is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and impairment charges, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management presents segment EBIT because it believes segment EBIT provides investors with an analysis of the company's operating performance and underlying trends of the businesses. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our condensed consolidated results of operations.

8

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

Revenue and EBIT by business segment was as follows:

	Revenues
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
North America Mailing	$	422,821	$	447,920	$	1,286,085	$	1,362,709
International Mailing	142,443		141,630		448,684		449,583
Small & Medium Business Solutions	565,264		589,550		1,734,769		1,812,292
Production Mail	116,477		114,889		360,352		337,582
Presort Services	105,093		105,909		322,954		322,401
Enterprise Business Solutions	221,570		220,798		683,306		659,983
Digital Commerce Solutions	151,952		139,441		420,139		427,273
Total revenue	$	938,786	$	949,789	$	2,838,214	$	2,899,548

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
North America Mailing	$	167,433		$	168,934		$	488,301		$	514,975
International Mailing	15,456			11,206			52,967			51,670
Small & Medium Business Solutions	182,889			180,140			541,268			566,645
Production Mail	10,620			10,125			34,239			28,439
Presort Services	20,398			19,167			65,132			82,728
Enterprise Business Solutions	31,018			29,292			99,371			111,167
Digital Commerce Solutions	10,196			2,971			20,134			23,674
Total EBIT	224,103			212,403			660,773			701,486
Reconciling items:
Interest, net (1)	(46,357		)	(45,088		)	(145,066		)	(142,853		)
Unallocated corporate and other expenses	(50,196		)	(44,185		)	(170,340		)	(151,154		)
Restructuring charges and asset impairments	(34,909		)	—			(53,940		)	980
Income from continuing operations before income taxes	$	92,641		$	123,130		$	291,427		$	408,459

(1) Includes financing interest expense, other interest expense and interest income.

9

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

3. Finance Assets

Finance Receivables

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 customers for postage and related supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances.

Finance receivables consisted of the following:

	September 30, 2013
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,466,556		$	446,810		$	1,913,366
Unguaranteed residual values	127,846			21,248			149,094
Unearned income	(299,700		)	(100,451		)	(400,151		)
Allowance for credit losses	(15,326		)	(7,823		)	(23,149		)
Net investment in sales-type lease receivables	1,279,376			359,784			1,639,160
Loan receivables
Loan receivables	389,828			51,455			441,283
Allowance for credit losses	(11,498		)	(1,849		)	(13,347		)
Net investment in loan receivables	378,330			49,606			427,936
Net investment in finance receivables	$	1,657,706		$	409,390		$	2,067,096
	December 31, 2012
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,581,711		$	461,510		$	2,043,221
Unguaranteed residual values	148,664			21,025			169,689
Unearned income	(316,030		)	(104,258		)	(420,288		)
Allowance for credit losses	(16,979		)	(8,662		)	(25,641		)
Net investment in sales-type lease receivables	1,397,366			369,615			1,766,981
Loan receivables
Loan receivables	414,960			47,293			462,253
Allowance for credit losses	(12,322		)	(2,131		)	(14,453		)
Net investment in loan receivables	402,638			45,162			447,800
Net investment in finance receivables	$	1,800,004		$	414,777		$	2,214,781

Allowance for Credit Losses and Aging of Receivables

We estimate our finance receivable risks and provide an allowance for credit losses accordingly. We evaluate the adequacy of the allowance for credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral and make adjustments to the allowance as necessary. This evaluation is inherently subjective and actual results may differ significantly from estimated reserves.

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 unsecured loan receivables that are more than 90 days past due. We resume revenue recognition when payments reduce the account balance aging to 60 days or less past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management

10

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

deems the account to be uncollectible. We believe that our finance receivable credit risk is limited because of our large number of clients, small account balances for most of our clients, and geographic and industry diversification.

Activity in the allowance for credit losses for the nine months ended September 30, 2013 and 2012 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2013	$	16,979		$	8,662		$	12,322		$	2,131		$	40,094
Amounts charged to expense	4,617			2,031			7,265			793			14,706
Accounts written off	(6,270		)	(2,870		)	(8,089		)	(1,075		)	(18,304		)
Balance at September 30, 2013	$	15,326		$	7,823		$	11,498		$	1,849		$	36,496
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2012	$	28,661		$	12,039		$	20,272		$	2,458		$	63,430
Amounts charged to expense	1,171			1,489			4,069			703			7,432
Accounts written off	(12,694		)	(3,708		)	(8,864		)	(973		)	(26,239		)
Balance at September 30, 2012	$	17,138		$	9,820		$	15,477		$	2,188		$	44,623

Aging of Receivables

The aging of gross finance receivables at September 30, 2013 and December 31, 2012 was as follows:

	September 30, 2013
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,400,998	$	417,881	$	372,330	$	49,330	$	2,240,539
> 30 days and < 61 days	27,467		8,845		9,233		1,276		46,821
> 60 days and < 91 days	18,255		5,346		3,544		431		27,576
> 90 days and < 121 days	5,383		3,982		2,026		221		11,612
> 120 days	14,453		10,756		2,695		197		28,101
Total	$	1,466,556	$	446,810	$	389,828	$	51,455	$	2,354,649
Past due amounts > 90 days
Still accruing interest	$	5,383	$	3,982	$	—	$	—	$	9,365
Not accruing interest	14,453		10,756		4,721		418		30,348
Total	$	19,836	$	14,738	$	4,721	$	418	$	39,713

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

	December 31, 2012
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,497,797	$	435,780	$	392,108	$	45,324	$	2,371,009
> 30 days and < 61 days	37,348		9,994		12,666		1,368		61,376
> 60 days and < 91 days	24,059		5,198		4,577		285		34,119
> 90 days and < 121 days	6,665		3,327		2,319		179		12,490
> 120 days	15,842		7,211		3,290		137		26,480
Total	$	1,581,711	$	461,510	$	414,960	$	47,293	$	2,505,474
Past due amounts > 90 days
Still accruing interest	$	6,665	$	3,327	$	—	$	—	$	9,992
Not accruing interest	15,842		7,211		5,609		316		28,978
Total	$	22,507	$	10,538	$	5,609	$	316	$	38,970

Credit Quality

The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client’s financial condition and, when applicable, payment history. 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 ensure 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. We do not use a third party to score our International portfolios because the cost to do so is prohibitive, it is a localized process and there is no single credit score model that covers all countries.

The table below shows the North America portfolio at September 30, 2013 and December 31, 2012 by relative risk class (low, medium, high) based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. 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, as defined by the third party, refers to the relative risk that an account in the next 12 month period may become delinquent.

• 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.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

	September 30, 2013		December 31, 2012
Sales-type lease receivables
Low	$	1,097,080	$	1,016,413
Medium	260,434		450,432
High	53,569		43,658
Not Scored	55,473		71,208
Total	$	1,466,556	$	1,581,711
Loan receivables
Low	$	271,874	$	254,567
Medium	92,579		136,069
High	11,666		14,624
Not Scored	13,709		9,700
Total	$	389,828	$	414,960

Troubled Debt

We maintain a program for U.S. clients in our North America loan portfolio who are experiencing financial difficulties, but are able to make reduced payments over an extended period of time. Upon acceptance into the program, the client’s credit line is closed and interest accrual is suspended. There is generally no forgiveness of debt or reduction of balances owed. The balance of loans in this program, related loan loss allowance and write-offs are insignificant to the overall portfolio.

Leveraged Leases

Our investment in leveraged lease assets at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013			December 31, 2012
Rental receivables	$	68,918		$	83,254
Unguaranteed residual values	13,644			14,177
Principal and interest on non-recourse loans	(41,836		)	(55,092		)
Unearned income	(5,868		)	(7,793		)
Investment in leveraged leases	34,858			34,546
Less: deferred taxes related to leveraged leases	(16,319		)	(19,372		)
Net investment in leveraged leases	$	18,539		$	15,174

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

4. Discontinued Operations and Assets Held For Sale

During the third quarter of 2013, we entered into an agreement to sell PBMS NA. The sale closed on October 1, 2013 and we received cash proceeds of $392 million. In addition, during the third quarter of 2013, we sold our Nordic furniture business. Total proceeds from this sale were not material.

During the second quarter of 2013, we entered into two separate agreements to sell PBMSi and completed the sale of IMS. We closed on the agreements to sell PBMSi on July 5, 2013 and August 31, 2013. Total proceeds from the sale of PBMSi and IMS were not material.

The following tables show selected financial information included in discontinued operations:

	Three Months Ended September 30, 2013
	PBMS			IMS			Nordic furniture business			Total
Revenue	$	194,511		$	4		$	12,014		$	206,529
Loss from operations before taxes	$	(14,438	)	$	(1,072	)	$	(4,381	)	$	(19,891	)
Gain on sale	13,269			1,196			4,465			18,930
(Loss) income before taxes	(1,169		)	124			84			(961		)
Tax provision (benefit)	81,084			168			(9		)	81,243
(Loss) income from discontinued operations	$	(82,253	)	$	(44	)	$	93		$	(82,204	)

	Three Months Ended September 30, 2012
	PBMS		IMS			Nordic furniture business		Total
Revenue	$	220,887	$	32,461		$	12,539	$	265,887
Income (loss) before taxes	$	14,491	$	(30,086	)	$	79	$	(15,516	)
Tax provision (benefit)	7,210		(11,335		)	22		(4,103		)
(Loss) income from discontinued operations	$	7,281	$	(18,751	)	$	57	$	(11,413	)

	Nine Months Ended September 30, 2013
	PBMS			IMS			Nordic furniture business			Total
Revenue	$	639,237		$	23,036		$	37,785		$	700,058
Loss from operations before taxes	$	(116,018	)	$	(3,050	)	$	(4,859	)	$	(123,927	)
Gain (loss) on sale	13,269			(2,717		)	4,465			15,017
Loss before taxes	(102,749		)	(5,767		)	(394		)	(108,910		)
Tax provision (benefit)	61,679			(1,076		)	(144		)	60,459
(Loss) income from discontinued operations	$	(164,428	)	$	(4,691	)	$	(250	)	$	(169,369	)

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

	Nine Months Ended September 30, 2012
	PBMS		IMS			Nordic furniture business		Capital Services (1)			Total
Revenue	$	679,080	$	100,443		$	38,081	$	—		$	817,604
Income (loss) before taxes	$	47,015	$	(34,051	)	$	1,370	$	—		$	14,334
Tax provision (benefit)	20,589		(12,563		)	383		(19,332		)	(10,923		)
(Loss) income from discontinued operations	$	26,426	$	(21,488	)	$	987	$	19,332		25,257

(1) Represents tax benefits arising from the resolution of tax examinations related to our Capital Services business, which was sold in 2006.

The pre-tax loss from operations for PBMS for the three and nine months ended September 30, 2013 includes an estimated loss on disposal of $20 million and $36 million, respectively. The pre-tax loss from operations for PBMS for the nine months ended September 30, 2013 also includes goodwill impairment charges of $100 million and asset impairment charges of $15 million. The inputs used to determine the fair value of the long-lived assets and goodwill were classified as Level 3 in the fair value hierarchy.

The assets and related liabilities held for sale at September 30, 2013 consist of the following:

Accounts receivables	$	145,955
Inventories	1,595
Other current assets and prepayments	11,948
Total current assets	159,498
Property, plant and equipment, net (1)	77,001
Goodwill	302,487
Intangible assets, net	7,193
Other assets	4,462
Assets held for sale	$	550,641
Accounts payable and accrued liabilities	$	77,639
Advance billings	9,862
Total current liabilities	87,501
Other non-current liabilities	30,676
Liabilities related to assets held for sale	$	118,177

(1) Also includes the carrying value of our corporate headquarters building and certain surrounding parcels of land. See Note 6.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

5. 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.

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 at September 30, 2013 and December 31, 2012. 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 their placement within the fair value hierarchy.

	September 30, 2013
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	194,486	$	147,259		$	—	$	341,745
Equity securities	—		25,384			—		25,384
Commingled fixed income securities	—		26,772			—		26,772
Debt securities - U.S. and foreign governments, agencies and municipalities	118,071		18,049			—		136,120
Debt securities - corporate	—		31,534			—		31,534
Mortgage-backed / asset-backed securities	—		159,300			—		159,300
Derivatives
Interest rate swaps	—		1,855			—		1,855
Foreign exchange contracts	—		1,845			—		1,845
Total assets	$	312,557	$	411,998		$	—	$	724,555
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(5,473	)	$	—	$	(5,473	)
Total liabilities	$	—	$	(5,473	)	$	—	$	(5,473	)

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

	December 31, 2012
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	581,648	$	34,369		$	—	$	616,017
Equity securities	—		25,106			—		25,106
Commingled fixed income securities	—		29,359			—		29,359
Debt securities - U.S. and foreign governments, agencies and municipalities	124,221		18,908			—		143,129
Debt securities - corporate	—		43,926			—		43,926
Mortgage-backed / asset-backed securities	—		162,375			—		162,375
Derivatives
Interest rate swaps	—		10,117			—		10,117
Foreign exchange contracts	—		2,582			—		2,582
Total assets	$	705,869	$	326,742		$	—	$	1,032,611
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(1,174	)	$	—	$	(1,174	)
Total liabilities	$	—	$	(1,174	)	$	—	$	(1,174	)

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 / Commercial Paper: 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. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2.

• Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign common stock. These mutual funds are classified as Level 2 as they are not separately listed on an exchange.

• Commingled Fixed Income Securities: 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. The value of the funds is based on the market 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 commingled funds are not listed on an exchange in an active market and are classified as Level 2.

• Debt Securities – U.S. and Foreign Governments, Agencies and Municipalities: 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 valued using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities are classified as Level 2.

• Debt Securities – Corporate: Corporate debt securities are valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2.

• Mortgage-Backed Securities (MBS) / Asset-Backed Securities (ABS): These securities are valued based on external pricing indices. When external index pricing is not observable, MBS and ABS are valued based on external price/spread data. These securities are classified as Level 2.

Investment securities include investments held by The Pitney Bowes Bank (the Bank), an indirect wholly owned subsidiary whose primary business is to provide financing solutions to clients that rent or lease postage meters. The Bank's key product offering, Purchase Power, is a revolving credit solution, which enables clients to finance their postage costs when they refill their meter. The Bank also provides a

17

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

deposit solution to those clients that prefer to prepay postage and earn interest on their deposits. When a client refills their postage meter, the funds are withdrawn from the savings account to pay for the postage. The Bank's assets and liabilities consist primarily of cash, finance receivables, short and long-term investments and deposit accounts.

The Bank's investment securities are classified as available-for-sale and recorded at fair value on the Condensed Consolidated Balance Sheets as cash and cash equivalents, short-term investments and other assets depending on the type of investment and maturity. Unrealized holding gains and losses are recorded, net of tax, in accumulated other comprehensive income (AOCI).

Available-for-sale securities at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	36,134	$	—	$	(13	)	$	36,121
Debt securities - U.S. and foreign governments, agencies and municipalities	116,146		1,405		(2,441		)	115,110
Debt securities - corporate	31,084		915		(465		)	31,534
Mortgage-backed / asset-backed securities	159,203		1,855		(1,758		)	159,300
Total	$	342,567	$	4,175	$	(4,677	)	$	342,065

	December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	44,611	$	53	$	—		$	44,664
Debt securities - U.S. and foreign governments, agencies and municipalities	127,807		3,972		(56		)	131,723
Debt securities - corporate	41,095		2,851		(20		)	43,926
Mortgage-backed / asset-backed securities	162,180		3,340		(3,145		)	162,375
Total	$	375,693	$	10,216	$	(3,221	)	$	382,688

Scheduled maturities of investment securities at September 30, 2013 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	55,811	$	55,853
After 1 year through 5 years	61,774		62,635
After 5 years through 10 years	62,694		62,301
After 10 years	162,288		161,276
Total	$	342,567	$	342,065

We have not experienced any significant write-offs in our investment portfolio. The majority of our MBS 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. Further, we have no investments in auction rate securities.

Derivative Instruments

In the normal course of business, we are exposed to the impact of interest rate changes and foreign currency fluctuations. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivatives to manage the related cost of debt and to limit the effects of foreign exchange rate fluctuations on financial results. We do not use derivatives for trading or speculative purposes. We record our derivative instruments at fair value, and the accounting for changes in the fair value of the derivatives 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.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

As required by the fair value measurements guidance, we have incorporated counterparty credit risk and our credit risk into the fair value measurement of our derivative assets and liabilities, respectively. We derive credit risk from observable data related to credit default swaps. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties.

The valuation of our interest rate swaps is based on the income approach using a model with inputs that are observable or that can be derived from or corroborated by observable market data. The valuation of our foreign exchange derivatives is based on the market approach using observable market inputs, such as forward rates.

The fair value of our derivative instruments at September 30, 2013 and December 31, 2012 was as follows:

Designation of Derivatives	Balance Sheet Location	September 30, 2013			December 31, 2012
Derivatives designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	$	398		$	78
	Other assets:
	Interest rate swaps	1,855			10,117
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(584		)	(320		)
Derivatives not designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	1,447			2,504
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(4,889		)	(854		)
	Total derivative assets	$	3,700		$	12,699
	Total derivative liabilities	(5,473		)	(1,174		)
	Total net derivative (liabilities) assets	$	(1,773	)	$	11,525

Interest Rate Swaps

Derivatives designated as fair value hedges include interest rate swaps related to fixed rate debt. Changes in the fair value of both the derivative and item being hedged are recognized in earnings. The following represents the results of fair value hedging relationships for the three and nine months ended September 30,2013 and 2012:

		Three Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	863	$	1,578	$	(2,742	)	$	(5,484	)
		Nine Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	3,631	$	8,351	$	(10,969	)	$	(25,652	)

Foreign Exchange Contracts

We enter into foreign currency 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. At September 30, 2013 and December 31, 2012, we had outstanding contracts associated with

19

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

these anticipated transactions with a notional amount of $29 million and $25 million, respectively. The value of these contracts at September 30, 2013 and December 31, 2012 was less than $1 million.

The amounts included in AOCI at September 30, 2013 will be recognized in earnings within the next 12 months. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges.

The following represents the results of cash flow hedging relationships for the three and nine months ended September 30,2013 and 2012:

	Three Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	(343	)	$	(863	)	Revenue	$	(169	)	$	456
							Cost of sales	108			(56		)
								$	(61	)	$	400
	Nine Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	457		$	(1,672	)	Revenue	$	(922	)	$	1,230
							Cost of sales	520			(129		)
								$	(402	)	$	1,101

We also 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 the intercompany loans and interest and the mark-to-market adjustment on the derivatives are both recorded in earnings. Outstanding foreign exchange contracts to buy or sell various currencies had a net liability value of $3 million at September 30, 2013 and a net asset value of $2 million at December 31, 2012. All outstanding contracts at September 30, 2013 mature by the end of the year.

The following represents the results of our non-designated derivative instruments for the three and nine months ended September 30,2013 and 2012:

		Three Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(6,798	)	$	939
		Nine Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(12,793	)	$	(2,129	)

Credit-Risk-Related Contingent Features

Certain derivative instruments contain credit-risk-related contingent features that would require us to post collateral based on a combination of our long-term senior unsecured debt ratings and the net fair value of our derivatives. At September 30, 2013, we were not required to post any collateral. The maximum amount of collateral that we would have been required to post at September 30, 2013, had the credit-risk-related contingent features been triggered, was $4 million.

20

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

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 because of the short maturity of these instruments.

The fair value of our debt is estimated based on recently executed transactions and market price quotations. These inputs are classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at September 30, 2013 and December 31, 2012 was as follows:

	September 30, 2013		December 31, 2012
Carrying value	$	3,650,590	$	4,017,375
Fair value	$	3,867,130	$	4,200,970

6. Restructuring Charges and Asset Impairments

Restructuring Charges

During the second quarter of 2013, we announced that we would implement initiatives and take actions designed to enhance our responsiveness to changing market conditions, further streamline our business operations, reduce our cost structure and create long-term flexibility to invest in growth and provide both process and operational improvements. We expect that these actions will result in restructuring charges in the range of $75 to $125 million, which will be recognized as specific initiatives are approved and implemented.

Net restructuring charges included in restructuring charges and asset impairments for the nine months ended September 30, 2013 were $28 million. This amount was net of reserve reversals of $6 million under prior restructuring programs. We perform a review of our remaining obligations under prior restructuring programs at the end of each period and adjust our reserves accordingly.

Activity in our restructuring reserves for the nine months ended September 30, 2013 was as follows:

	Severance and benefits costs			Pension and Retiree Medical			Asset impairments			Other exit costs			Total
Balance at January 1, 2013	$	62,540		$	—		$	—		$	5,218		$	67,758
Expenses, net (1)	25,705			1,964			71			1,528			29,268
Cash payments	(38,125		)	—			—			(3,228		)	(41,353		)
Non-cash charges	—			(1,964		)	(71		)	—			(2,035		)
Balance at September 30, 2013	$	50,120		$	—		$	—		$	3,518		$	53,638

(1)    Includes restructuring charges for both continuing and discontinued operations.

The majority of the remaining restructuring payments are expected to be paid through 2014; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 2014. We expect that cash flows from operations will be sufficient to fund these payments. The carrying value of our restructuring liability approximates fair value due to the short-term nature of the obligations.

Asset Impairments

During the third quarter of 2013, we entered into an agreement to sell our corporate headquarters building and certain surrounding parcels of land. The fair value of the building and land was determined based on the estimated selling price less the costs to sell, and a non-cash impairment charge of $26 million was recognized to write-down the carrying value of the building and land to their fair value. The inputs used to determine the fair value were classified as Level 3. The impairment charge was included as restructuring charges and asset impairments in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2013. We expect to close on the sale by the end of the second quarter of 2014.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

7. Inventories

Inventories consisted of the following:

	September 30, 2013			December 31, 2012
Raw materials and work in process	$	46,663		$	66,221
Supplies and service parts	55,453			72,551
Finished products	58,337			68,335
Inventory at FIFO cost	160,453			207,107
Excess of FIFO cost over LIFO cost	(26,187		)	(27,429		)
Total inventory, net	$	134,266		$	179,678

8. Intangible Assets and Goodwill

Intangible assets

Intangible assets consisted of the following:

	September 30, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	353,241	$	(244,275	)	$	108,966	$	407,901	$	(269,100	)	$	138,801
Supplier relationships	29,000		(24,288		)	4,712		29,000		(22,113		)	6,887
Software & technology	166,397		(153,153		)	13,244		169,632		(151,628		)	18,004
Trademarks & trade names	35,177		(33,549		)	1,628		35,078		(32,615		)	2,463
Non-compete agreements	7,349		(7,311		)	38		7,471		(7,412		)	59
Total intangible assets	$	591,164	$	(462,576	)	$	128,588	$	649,082	$	(482,868	)	$	166,214

Amortization expense for intangible assets was $8 million and $9 million for the three months ended September 30, 2013 and 2012, respectively, and $26 million and $30 million for the nine months ended September 30, 2013 and 2012, respectively. The future amortization expense for intangible assets as of September 30, 2013 was as follows:

Remaining for year ended December 31, 2013	$	8,848
Year ended December 31, 2014	34,246
Year ended December 31, 2015	30,288
Year ended December 31, 2016	22,935
Year ended December 31, 2017	11,352
Thereafter	20,919
Total	$	128,588

Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, future acquisitions and accelerated amortization.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

Goodwill

As a result of the change in reporting segments, we reallocated goodwill among some of our segments and performed the required goodwill impairment test. Based on the results of the impairment tests, we determined that the estimated fair values of the affected reporting units exceeded the carrying values.

The changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows:

	Gross value before accumulated impairment		Accumulated impairment			December 31, 2012		Impairment (2)			Other (1)			September 30, 2013
North America Mailing	$	355,874	$	—		$	355,874	$	—		$	2,439		$	358,313
International Mailing	183,908		—			183,908		(1,162		)	(1,633		)	181,113
Small & Medium Business Solutions	539,782		—			539,782		(1,162		)	806			539,426
Production Mail	131,865		—			131,865		—			(15,050		)	116,815
Management Services (2)	488,399		(84,500		)	403,899		(100,253		)	(1,159		)	302,487
Presort Services	259,106		(63,965		)	195,141		—			—			195,141
Enterprise Business Solutions	879,370		(148,465		)	730,905		(100,253		)	(16,209		)	614,443
Digital Commerce Solutions	865,451		—			865,451		—			12,345			877,796
Total	$	2,284,603	$	(148,465	)	$	2,136,138	$	(101,415	)	$	(3,058	)	$	2,031,665
Reclassified to Assets held for sale (2)														(302,487		)
Balance at September 30, 2013														$	1,729,178

(1) Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments.

(2) The goodwill impairment charges are included in (loss) income from discontinued operations in the Condensed Consolidated Statements of Income (Loss). The remaining carrying value of goodwill in the Management Services segment is included in assets held for sale in the Condensed Consolidated Balance Sheet (see Note 4). Management Services was previously a reporting segment prior to our change in segment reporting (see Note 2).

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

9. Debt

Debt consisted of the following:

		September 30, 2013		December 31, 2012
Term loans		$	230,000	$	230,000
3.875%	notes due 2013	—		375,000
4.875%	notes due 2014 (1), (2)	299,570		450,000
5.0%	notes due 2015 (1)	274,879		400,000
4.75%	notes due 2016 (1)	370,914		500,000
5.75%	notes due 2017	500,000		500,000
5.60%	notes due 2018	250,000		250,000
4.75%	notes due 2018	350,000		350,000
6.25%	notes due 2019	300,000		300,000
5.25%	notes due 2022	110,000		110,000
5.25%	notes due 2037	500,000		500,000
6.70%	notes due 2043 (3)	425,000		—
Other (4)		40,227		52,375
Total debt		3,650,590		4,017,375
Current portion		299,570		375,000
Long-term debt		$	3,351,020	$	3,642,375

(1) During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income.

(2) Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements.

(3) During the first quarter, we issued $425 million of 6.7% fixed rate 30-year notes. Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. We used the net proceeds from the notes to fund the Tender Offer.

(4) Other consists of the unamortized proceeds received from unwinding of interest rate swaps, unamortized net debt discounts and the fair value adjustment of interest rate swaps.

At September 30, 2013, there were no outstanding commercial paper borrowings. During the quarter, commercial paper borrowings averaged $33 million at a weighted-average interest rate of 0.42% and the maximum amount outstanding at any time was $100 million.

24

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

10. Noncontrolling Interests (Preferred Stockholders’ Equity in Subsidiaries)

Pitney Bowes International Holdings, Inc. (PBIH), a subsidiary, has 300,000 shares, or $300 million, of outstanding perpetual voting preferred stock (the Preferred Stock) held by certain institutional investors. The holders of the Preferred Stock are entitled as a group to 25% of the combined voting power of all classes of capital stock of PBIH. All outstanding common stock of PBIH, representing the remaining 75% of the combined voting power of all classes of capital stock, is owned directly or indirectly by the company. The Preferred Stock is entitled to cumulative dividends at a rate of 6.125% through 2016 after which it becomes callable and, if it remains outstanding, will yield a dividend that increases by 50% every six months thereafter. No dividends were in arrears at September 30, 2013 or December 31, 2012. There was no change in the carrying value of noncontrolling interests during the period ended September 30, 2013 or the year ended December 31, 2012.

11. Stockholders’ Equity

Changes in stockholders’ equity for the nine months ended September 30, 2013 and 2012 were as follows:

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2013	$	4	$	648		$	323,338	$	223,847		$	4,744,802		$	(681,213	)	$	(4,500,795	)	$	110,631
Net income	—		—			—		—			52,746			—			—			52,746
Other comprehensive income	—		—			—		—			—			(15,380		)	—			(15,380		)
Cash dividends
Common ($0.75 per share)	—		—			—		—			(150,920		)	—			—			(150,920		)
Preference	—		—			—		—			(35		)	—			—			(35		)
Issuances of common stock	—		—			—		(33,412		)	—			—			35,546			2,134
Conversions to common stock	—		(40		)	—		(853		)	—			—			893			—
Stock-based compensation expense	—		—			—		12,061			—			—			—			12,061
Balance at September 30, 2013	$	4	$	608		$	323,338	$	201,643		$	4,646,593		$	(696,593	)	$	(4,464,356	)	$	11,237

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2012	$	4	$	659		$	323,338	$	240,584		$	4,600,217		$	(661,645	)	$	(4,542,143	)	$	(38,986	)
Net income	—		—			—		—			334,826			—			—			334,826
Other comprehensive income	—		—			—		—			—			35,777			—			35,777
Cash dividends
Common ($1.125 per share)	—		—			—		—			(225,244		)	—			—			(225,244		)
Preference	—		—			—		—			(38		)	—			—			(38		)
Issuances of common stock	—		—			—		(31,306		)	—			—			36,138			4,832
Conversions to common stock	—		(6		)	—		(124		)	—			—			130			—
Stock-based compensation expense	—		—			—		13,466			—			—			—			13,466
Balance at September 30, 2012	$	4	$	653		$	323,338	$	222,620		$	4,709,761		$	(625,868	)	$	(4,505,875	)	$	124,633

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

12. Accumulated Other Comprehensive Loss

Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30,2013 and 2012 was as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Gains (losses) on cash flow hedges
Revenue	$	(169	)	$	456		$	(922	)	$	1,230
Cost of sales	108			(56		)	520			(129		)
Interest expense	(507		)	(507		)	(1,521		)	(1,521		)
Total before tax	(568		)	(107		)	(1,923		)	(420		)
Tax benefit	222			43			750			165
Net of tax	$	(346	)	$	(64	)	$	(1,173	)	$	(255	)
Unrealized gains (losses) on available for sale securities
Interest income	$	1,640		$	(41	)	$	(962	)	$	(517	)
Tax benefit	(607		)	15			356			191
Net of tax	$	1,033		$	(26	)	$	(606	)	$	(326	)
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2		$	6		$	6
Prior service (costs) credit	(163		)	295			(524		)	884
Actuarial losses	(12,136		)	(18,852		)	(44,038		)	(56,376		)
Total before tax	(12,297		)	(18,555		)	(44,556		)	(55,486		)
Tax benefit	4,347			6,404			15,613			20,371
Net of tax	$	(7,950	)	$	(12,151	)	$	(28,943	)	$	(35,115	)

(a)     Amounts in parentheses indicate debits (reductions) to income.

(b) These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012 were as follows:

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities			Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2013	$	(7,777	)	$	4,513		$	(759,199	)	$	81,250		$	(681,213	)
Other comprehensive income (loss) before reclassifications (a)	(211		)	(5,273		)	—			(36,805		)	(42,289		)
Amounts reclassified from accumulated other comprehensive income (a), (b), (c)	1,173			606			28,943			(3,813		)	26,909
Net current period other comprehensive income	962			(4,667		)	28,943			(40,618		)	(15,380		)
Balance at September 30, 2013	$	(6,815	)	$	(154	)	$	(730,256	)	$	40,632		$	(696,593	)

26

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities		Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2012	$	(8,438	)	$	4,387	$	(741,546	)	$	83,952		$	(661,645	)
Other comprehensive income (loss) before reclassifications (a)	323			641		—			(883		)	81
Amounts reclassified from accumulated other comprehensive income (a), (b)	255			326		35,115			—			35,696
Net current period other comprehensive income	578			967		35,115			(883		)	35,777
Balance at September 30, 2012	$	(7,860	)	$	5,354	$	(706,431	)	$	83,069		$	(625,868	)

(a)     Amounts are net of tax. Amounts in parentheses indicate debits to AOCI.

(b)     See table above for additional details of these reclassifications.

(c) Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income.

13. Income Taxes

The effective tax rate for the three months ended September 30, 2013 and 2012 was 12.3% and 24.8%, respectively, and the effective tax rate for the nine months ended September 30, 2013 and 2012 was 19.1% and 20.8%, respectively.

The effective tax rate for the three and nine months ended September 30,2013 includes a tax benefit of $13 million from an affiliate reorganization and benefits of $4 million and $11 million, respectively, related to tax planning initiatives. The effective tax rate for the nine months ended September 30, 2013 also includes benefits of $5 million from the adjustment of non-U.S. tax accounts from prior periods and $4 million from the retroactive effect of 2013 U.S. tax legislation.

The effective tax rate for the three and nine months ended September 30,2012 includes tax benefits of $36 million and $58 million, respectively, from the resolution of tax examinations and tax accruals of $28 million for the repatriation of non-U.S. earnings. The effective tax rate for the nine months ended September 30, 2012 also includes tax benefits of $17 million from the sale of non-U.S. leveraged lease assets

As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S., other countries and local jurisdictions in which we have operations. We expect the examination of our 2009 through 2011 tax returns by the Internal Revenue Service (IRS) to be completed within the next 12 months. We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we do business and account for the related financial statement implications. We believe we have established tax reserves that are appropriate given the possibility of tax adjustments. However, determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax law and the possibility of tax adjustments. Future changes in tax reserve requirements could have a material impact, positive or negative, on our results of operations, financial position and cash flows. It is reasonably possible that the amount of our unrecognized tax benefits will decrease in the next 12 months, and we expect this change could be up to twenty percent of our unrecognized tax benefits.

On August 27, 2012, the United States Court of Appeals for the Third Circuit overturned a prior Tax Court decision and ruled in favor of the IRS and adverse to the Historic Boardwalk Hall LLC, a partnership in which we had made an investment in the year 2000. The case has been sent back to the Tax Court for additional proceedings. Based on our entitlement to indemnification under the partnership agreement, we do not expect this matter to have a material effect on our results of operations. However, the potential for a difference in the timing of payments which may be due to taxing authorities and the timing of receipts due to us under the partnership agreement may cause fluctuations in our cash flows in future periods.

14. 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 customers; 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. However, as litigation is inherently unpredictable, there can be no assurances in this regard.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

15. Pensions and Other Benefit Programs

Defined Benefit Pension Plans

The components of net periodic benefit cost for defined benefit pension plans were as follows:

	Three Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	3,597		$	4,735		$	968		$	1,774
Interest cost	18,264			20,260			1,870			6,909
Expected return on plan assets	(26,781		)	(30,406		)	(3,266		)	(8,069		)
Amortization of transition credit	—			—			(2		)	(2		)
Amortization of prior service cost	95			200			28			28
Amortization of net actuarial loss	7,690			13,240			2,873			3,558
Settlement	145			—			—			192
Special termination benefits	—			—			104			—
Net periodic benefit cost	$	3,010		$	8,029		$	2,575		$	4,390

	Nine Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	10,890		$	14,204		$	5,280		$	5,805
Interest cost	55,169			60,780			25,246			20,766
Expected return on plan assets	(80,908		)	(91,218		)	(31,187		)	(24,133		)
Amortization of transition credit	—			—			(6		)	(6		)
Amortization of prior service cost	318			602			84			83
Amortization of net actuarial loss	26,234			39,719			11,511			10,546
Settlement	1,561			—			—			442
Special termination benefits	548			—			104			—
Curtailment	814			—			—			—
Net periodic benefit cost	$	14,626		$	24,087		$	11,032		$	13,503

Through September 30, 2013, we contributed $9 million to our U.S. pension plans and $10 million to our foreign pension plans.

Nonpension Postretirement Benefit Plans

The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Service cost	$	935	$	801		$	2,966	$	2,560
Interest cost	2,186		2,896			7,210		8,685
Amortization of prior service cost (credit)	40		(523		)	122		(1,569		)
Amortization of net actuarial loss	1,573		2,054			6,293		6,111
Net periodic benefit cost	$	4,734	$	5,228		$	16,591	$	15,787

Contributions for benefit payments for our nonpension postretirement benefit plans were $5 million and $7 million for the three months ended September 30, 2013 and 2012, respectively, and $21 million for each of the nine months ended September 30, 2013 and 2012.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands of dollars, unless otherwise noted)

16. Earnings per Share

The calculations of basic and diluted earnings per share are presented below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Amounts attributable to common stockholders:
Net income from continuing operations	$	76,677		$	87,946		$	222,115		$	309,569
Income (loss) from discontinued operations	(82,204		)	(11,413		)	(169,369		)	25,257
Net income - Pitney Bowes Inc. (numerator for diluted EPS)	(5,527		)	76,533			52,746			334,826
Less: Preference stock dividend	(12		)	(12		)	(35		)	(38		)
Income attributable to common stockholders (numerator for basic EPS)	$	(5,539	)	$	76,521		$	52,711		$	334,788
Denominator (in thousands):
Weighted-average shares used in basic EPS	201,827			200,593			201,490			200,266
Effect of dilutive shares:
Preferred stock	2			2			2			2
Preference stock	376			399			386			399
Stock plans	935			608			712			458
Weighted-average shares used in diluted EPS	203,140			201,602			202,590			201,125
Basic earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.55
Discontinued operations	(0.41		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.67
Diluted earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.54
Discontinued operations	(0.40		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.66
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands):	12,503			13,607			12,886			14,391

(1) The sum of earnings per share amounts may not equal the totals due to rounding.

17. Subsequent Event

On November 4, 2013, we redeemed the remaining $300 million of 4.875% outstanding notes that were scheduled to mature August 2014. Total cash payments, including principal, accrued interest and make-whole payment, were $314 million. In connection with this redemption, we also unwound an interest rate swap. We will recognize a net loss in the fourth quarter of $7 million associated with this redemption.

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Item 2: Management’s Discussion and Analysis ofFinancial Condition and Results of Operations

Forward-Looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains statements that are forward-looking. We want to caution readers that any forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act) in this Form 10-Q may change based on various factors. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties and actual results could differ materially. Words such as “estimate”, “target”, “project”, “plan”, “believe”, “expect”, “anticipate”, “intend”, and similar expressions may identify such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Factors which could cause future financial performance to differ materially from the expectations as expressed in any forward-looking statement made by or on our behalf include, without limitation:

• declining physical mail volumes

• mailers' utilization of alternative means of communication or competitors' products

• access to capital at a reasonable cost to continue to fund various discretionary priorities, including business investments, pension contributions and dividend payments

• timely development and acceptance of new products and services

• successful entry into targeted emerging markets

• success in gaining regulatory approval for products where required

• changes in postal or banking regulations

• interrupted use of key information systems

• third-party suppliers' ability to provide product components, assemblies or inventories

• our success at managing the relationships with our outsource providers, including the costs of outsourcing functions and operations not central to our business

• changes in privacy laws

• intellectual property infringement claims

• regulatory approvals and satisfaction of other conditions to consummate and integrate any acquisitions

• negative developments in economic conditions, including adverse impacts on customer demand

• our success at managing customer credit risk

• significant changes in pension, health care and retiree medical costs

• changes in interest rates, foreign currency fluctuations or credit ratings

• income tax adjustments or other regulatory levies for prior audit years and changes in tax laws, rulings or regulations

• impact on mail volume resulting from concerns over the use of the mail for transmitting harmful biological agents

• changes in international or national political conditions, including any terrorist attacks

• acts of nature

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements contained in this report and our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2012 (2012 Annual Report). All table amounts are shown in thousands of dollars, unless otherwise noted.

Overview

Third Quarter 2013 Results

For the third quarter of 2013, revenue decreased1% to $939 million compared to $950 million in the third quarter of 2012. Equipment sales revenue increased 1% primarily due to sales of large production printers and inserters in North America and Asia Pacific. Supplies revenue grew 4% primarily due to the growing base of production print equipment installations and higher ink sales in our international markets. Software revenue grew 5% due to higher licensing revenue primarily in the U.S. Rentals and financing revenue decreased 7% and 8%, respectively, due a decline in the number of installed meters worldwide and lower equipment sales in prior periods. Support services revenue decreased 6% due to lower maintenance agreement revenue while business services revenue increased 5% from demand for our ecommerce solutions for cross border parcel delivery.

Net income from continuing operations attributable to common stockholders decreased to $77 million, or $0.38 per diluted share in the third quarter of 2013 compared to $88 million, or $0.44 per diluted share in the third quarter of 2012. This decrease resulted primarily from $35 million of pre-tax restructuring and asset impairment charges taken during the period. The majority of these charges related to an impairment of our world headquarters building based on a sales agreement signed during the quarter. The remainder of these charges related to initiatives we are undertaking to streamline our business operations and lower costs.

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During the third quarter of 2013, we entered into an agreement to sell the North America Management Services operations (PBMS NA). The sale closed on October 1, 2013 and we received cash proceeds of $392 million. In addition, during the third quarter of 2013, we sold our Nordic furniture business. Total proceeds from this sale were not material.

During the second quarter of 2013, we entered into two separate agreements to sell the International Management Services business (PBMSi) and completed the sale of our International Mail Services operations (IMS) related to the international delivery of mail and catalogs. We closed on the agreements to sell PBMSi on July 5, 2013 and August 31, 2013. Total proceeds from the sale of PBMSi and IMS were not material.

PBMS (collectively PBMS NA and PBMSi), the Nordic furniture business and IMS are presented as discontinued operations in the Condensed Consolidated Statements of Income (Loss).

As a result of the above divestitures and certain organizational changes designed to realign our business units to reflect the clients served and how we review, analyze, measure and manage our operations, we have revised our business segment reporting. We have recast historical segment results to conform to our current segment presentation and to exclude discontinued operations.

Outlook

We have stated our intent to focus on three critical areas: stabilizing the mailing business, achieving operational excellence and driving growth with our digital commerce solutions.

Small & Medium Business Solutions revenue continues to be impacted, especially in North America, by the decline in physical mail volumes. We expect revenue to continue to be impacted by lower recurring revenue streams, but to a lesser degree as recurring revenues are expected to continue to moderate in their rate of decline. We have begun implementing a phased roll-out of our new "go-to-market" strategy in North America designed to improve the sales process and reduce costs by providing our clients broader access to products and services though online and direct sales channels. Within our international mailing markets we are continuing to expand our sales of our Connect+^TM communications systems.

Within the Enterprise Business Solutions group, Production Mail is having a strong year due to sales of our high-speed production print equipment and production mail inserter systems. While we expect demand for these products to continue, we currently do not anticipate similar growth rates in 2014 due to the cyclical nature of these sales. Within our Presort Services segment, we expect increasing revenue due to the U.S. Postal Service’s IMB mandate, as well as workshare improvements and new sales opportunities.

In our Digital Commerce Solutions segment, we anticipate growth to be driven by continued demand for our location intelligence and customer data and engagement solutions. In addition, we anticipate further growth will be driven by increasing volumes associated with our ecommerce solutions for cross-border package delivery.

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RESULTS OF OPERATIONS

Revenue by source and the related cost of revenue are shown in the following tables:

	Revenue
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013		2012		% change		2013		2012		% change
Equipment sales	$	201,830	$	199,609	1	%	$	634,779	$	618,620	3	%
Supplies	69,696		66,878		4	%	216,254		213,665		1	%
Software	98,164		93,476		5	%	285,658		302,377		(6	)%
Rentals	128,225		137,149		(7	)%	391,590		414,922		(6	)%
Financing	113,955		123,999		(8	)%	346,646		373,695		(7	)%
Support services	166,785		176,769		(6	)%	505,226		529,615		(5	)%
Business services	160,131		151,909		5	%	458,061		446,654		3	%
Total revenue	$	938,786	$	949,789	(1	)%	$	2,838,214	$	2,899,548	(2	)%

	Cost of Revenue
	Three Months Ended September 30,								Nine Months Ended September 30,
					Percentage of Revenue								Percentage of Revenue
	2013		2012		2013		2012		2013		2012		2013		2012
Cost of equipment sales	$	92,307	$	95,008	45.7	%	47.6	%	$	307,992	$	278,457	48.5	%	45.0	%
Cost of supplies	21,840		20,689		31.3	%	30.9	%	67,794		65,423		31.3	%	30.6	%
Cost of software	29,698		29,227		30.3	%	31.3	%	80,093		85,023		28.0	%	28.1	%
Cost of rentals	25,612		25,182		20.0	%	18.4	%	79,791		87,258		20.4	%	21.0	%
Financing interest expense	20,306		19,604		17.8	%	15.8	%	59,979		61,385		17.3	%	16.4	%
Cost of support services	103,004		107,074		61.8	%	60.6	%	315,275		334,274		62.4	%	63.1	%
Cost of business services	112,447		103,230		70.2	%	68.0	%	322,970		298,689		70.5	%	66.9	%
Total cost of revenue	$	405,214	$	400,014	43.2	%	42.1	%	$	1,233,894	$	1,210,509	43.5	%	41.7	%

Equipment sales

Equipment sales revenue increased1% to $202 million and 3% to $635 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012. The increase in the quarter was driven primarily by the installation of a large production printer in New Zealand and several inserters in North America. Equipment sales for the year-to-date period were favorably impacted by the installation of production printers and inserting equipment in North America and revenue of $3 million for scale updates resulting from a postal rate change in France; however, lower mail volumes in North America continue to have an unfavorable impact on mailing equipment sales in North America. Cost of equipment sales as a percentage of revenue decreased to 45.7% in the quarter compared to 47.6% in the prior year quarter primarily due to higher mix of lease extension equipment sales. For the year-to-date period, cost of equipment sales as a percentage of revenue increased to 48.5% from 45.0% in the same period in 2012 primarily due to a higher mix of lower margin product sales.

Supplies

Supplies revenue increased4% to $70 million and 1% to $216 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012. The increase in the quarter and year-to-date periods was primarily due to supply sales related to the growing base of production print equipment installations and higher ink revenue in our international markets due to favorable pricing in the U.K. and stabilization in meter population trends. Cost of supplies as a percentage of revenue for the quarter and year-to-date periods was 31.3%, slightly higher than 30.9% in the prior year quarter and 30.6% in the 2012 year-to-date period, primarily due to lower margins on production print equipment supplies sales.

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Software

Software revenue increased5% to $98 million in the quarter compared to the prior year period primarily due to favorable software licensing revenue in our Digital Commerce Solutions segment. Revenue also benefited from our digital mail delivery service offering (Volly^TM). For the year-to-date period, software revenue decreased 6% to $286 million compared to the same period in the prior year, primarily due to $14 million of revenue in the prior year from two significant contracts signed in 2012. Uncertain economic conditions and constrained public sector spending in our international markets have also impacted software sales. These decreases were partially offset by revenue from Volly^TMof $8 million. Cost of software as a percentage of revenue improved to 30.3% in the quarter compared with 31.3% in the prior year quarter and to 28.0% in the year-to-date period compared to 28.1% in the prior year period, primarily due to cost reduction initiatives.

Rentals

Rentals revenue decreased7% to $128 million and 6% to $392 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012, primarily due to lower mail volumes and fewer meters in service. Cost of rentals as a percentage of revenue increased to 20.0% in the quarter compared to 18.4% in the prior year quarter primarily due to pricing pressures and a change in product mix. Cost of rentals as a percentage of revenue for the year-to-date period improved to 20.4% compared to 21.0% in the prior year period primarily due to lower depreciation expense.

Financing

Financing revenue decreased8% to $114 million and 7% to $347 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012, primarily due to lower equipment sales in prior periods. Financing interest expense as a percentage of revenue for the quarter and year-to-date periods increased to 17.8% and 17.3%, respectively, compared to 15.8% and 16.4% in the comparable prior year periods due to higher effective interest rates. In computing our financing interest expense, which represents our cost of borrowing associated with the generation of financing revenue, we assume a 10:1 leveraging ratio of debt to equity and apply our overall effective interest rate to the average outstanding finance receivables.

Support Services

Support services revenue decreased6% in the quarter to $167 million and 5% in the year-to-date period to $505 million, compared to the same periods in 2012. The decrease was primarily driven by lower maintenance agreement revenue due to declining meter population, lower new equipment placements worldwide and lower maintenance agreement revenue on new placements. Cost of support services as a percentage of revenue for the quarter increased to 61.8% compared to 60.6% in the prior year quarter due to lower revenues. Cost of support services as a percentage of revenue for the year-to-date period improved to 62.4% compared to 63.1% in the 2012 year-to-date period due to productivity initiatives in our International Mailing business, which more than offset the impact of lower revenues.

Business Services

Business services revenue increased5% in the quarter to $160 million and 3% in the year-to-date period to $458 million compared to the same periods in 2012. The quarter and year-to-date periods benefited from revenue from our ecommerce solutions for cross-border package delivery; however, these benefits were partially offset by lower marketing services fees under certain contract renewals of $7 million in the quarter and $17 million in the year-to-date period. Cost of business services as a percentage of revenue increased in the quarter to 70.2% from 68.0% in the prior year quarter and to 70.5% in the year-to-date period compared to 66.9% in the 2012 year-to-date period. The increase was primarily due to continuing investment in our ecommerce offering and lower marketing services fees.

Selling, general and administrative (SG&A)

SG&A expense decreased$16 million, or 4%, to $355 million in the quarter, and $44 million, or 4%, to $1,067 million in the year-to-date period compared to the same periods in 2012. These reductions were achieved as a result of our focus on operational excellence and the benefits of productivity initiatives in process, such as the new "go-to-market" initiative.

Restructuring charges and asset impairments

Restructuring Charges

In order to enhance our responsiveness to changing market conditions, further streamline our business operations, reduce our cost structure and create long-term flexibility to invest in growth, we have identified certain actions that we believe will provide both process and operational improvements. We anticipate that these primarily cash related actions will result in restructuring charges in the range of $75 to $125 million, which will be recognized as specific initiatives are approved and implemented. We anticipate annualized pre-tax benefits of $100 to $125 million, net of investments, from these actions, and expect to reach this benefit run rate by 2015.

Restructuring charges, net for the three and nine months ended September 30, 2013 were $9 million and $28 million, respectively. These charges consist primarily of severance and benefits for workforce reductions.

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Asset Impairments

During the third quarter of 2013, we entered into an agreement to sell our corporate headquarters building and certain surrounding parcels of land. Based on the terms of the sale, we recorded a non-cash impairment charge of $26 million. We expect to close on the sale by the end of the second quarter of 2014.

Other expense, net

Other expense, net for the nine months ended September 30, 2013 of $25 million consists of the costs associated with the early redemption of debt during the first quarter. See Liquidity and Capital Resources - Financings and Capitalization for a detailed discussion.

Income taxes

See Note 13 to the Condensed Consolidated Financial Statements.

Discontinued operations

See Note 4 to the Condensed Consolidated Financial Statements.

Preferred stock dividends of subsidiaries attributable to noncontrolling interests

See Note 10 to the Condensed Consolidated Financial Statements.

Business segment results

During the third quarter of 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect the clients served and how we review, analyze, measure and manage our operations. There were no changes to the Small & Medium Business Solutions group, but certain business activities within our Enterprise Business Solutions group were consolidated under a new reporting segment, Digital Commerce Solutions. Historical segment results have been recast to conform to our current presentation and to exclude discontinued operations. The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in areas outside North America.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed sorting and production print equipment and production mail systems to large enterprise clients to process inbound and outbound mail.

Presort Services: Includes worldwide revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts.

Digital Commerce Solutions:

Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software; (ii) direct marketing services for targeted clients; (iii) our digital mail delivery service offering (Volly^TM); and (iv) our cross-border e-commerce solutions.

The following tables show revenue and EBIT by business segment for the three and nine months ended September 30,2013 and 2012. Segment EBIT is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and impairment charges, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management

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presents segment EBIT because it believes segment EBIT provides investors with an analysis of the company's operating performance and underlying trends of the businesses. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our condensed consolidated results of operations. Refer to Note 2 to the Condensed Consolidated Financial Statements for a reconciliation of segment EBIT to income from continuing operations before income taxes.

	Revenue
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013		2012		% change		2013		2012		% change
North America Mailing	$	422,821	$	447,920	(6	)%	$	1,286,085	$	1,362,709	(6	)%
International Mailing	142,443		141,630		1	%	448,684		449,583		—	%
Small & Medium Business Solutions	565,264		589,550		(4	)%	1,734,769		1,812,292		(4	)%
Production Mail	116,477		114,889		1	%	360,352		337,582		7	%
Presort Services	105,093		105,909		(1	)%	322,954		322,401		—	%
Enterprise Business Solutions	221,570		220,798		—	%	683,306		659,983		4	%
Digital Commerce Solutions	151,952		139,441		9	%	420,139		427,273		(2	)%
Total	$	938,786	$	949,789	(1	)%	$	2,838,214	$	2,899,548	(2	)%

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013		2012		% change		2013		2012		% change
North America Mailing	$	167,433	$	168,934	(1	)%	$	488,301	$	514,975	(5	)%
International Mailing	15,456		11,206		38	%	52,967		51,670		3	%
Small & Medium Business Solutions	182,889		180,140		2	%	541,268		566,645		(4	)%
Production Mail	10,620		10,125		5	%	34,239		28,439		20	%
Presort Services	20,398		19,167		6	%	65,132		82,728		(21	)%
Enterprise Business Solutions	31,018		29,292		6	%	99,371		111,167		(11	)%
Digital Commerce Solutions	10,196		2,971		243	%	20,134		23,674		(15	)%
Total	$	224,103	$	212,403	6	%	$	660,773	$	701,486	(6	)%

Small & Medium Business Solutions

Small & Medium Business Solutions revenue for the quarter and year-to-date periods decreased4% to $565 million and $1,735 million, respectively, compared to the same periods in 2012. EBIT for the quarter increased2% to $183 million compared to the prior year quarter and decreased 4% in the year-to-date period to $541 million compared to the prior year period.

North America Mailing

Revenue for the North America Mailing segment in the quarter and year-to-date periods decreased6% to $423 million and $1,286 million, respectively, compared to the same periods in 2012. Recurring revenues, comprised of supplies, rentals and financing revenue, declined 7% in the quarter and 6% in the year-to-date period. We continue to see declining recurring revenues due to fewer meters in service and lower financing transactions due to declining equipment sales in prior periods. Equipment sales decreased 1% in the quarter and 5% in the year-to-date period compared to the prior year periods, primarily due to declining mail volumes.

EBIT decreased1% to $167 million in the quarter and 5% to $488 million in the year-to-date period compared to the prior year periods, primarily due to the decline in revenue; however, EBIT margin improved due to process improvements and cost reduction initiatives. We

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are in the midst of implementing a new "go-to-market" strategy designed to improve the sales process and reduce costs by providing our clients broader access to products and services though online and direct sales channels.

International Mailing

Revenue for the International Mailing segment increased1% in the quarter to $142 million and was flat for the year-to-date period at $449 million compared to the same periods in 2012. Recurring stream revenues were flat in the quarter and down 2% in the year-to-date period compared to the prior year periods. Within recurring revenues, rentals revenue declined 9% in the quarter and 13% in the year-to-date period primarily due to a change in mix from rentals to equipment sales in France in 2012, and fewer installed meters in the U.K. We are starting to see a stabilization in meter population trends in our international markets. Supplies revenue increased 7% in the quarter and 2% in the year-to-date period as compared to the prior year periods due to a stabilization in meter population, favorable pricing in the U.K. and higher sales in Asia-Pacific. Equipment sales increased 1% in the quarter and year-to-date periods primarily due to increased sales in France and Germany, partially offset by lower equipment sales in the U.K. due to the continuing uncertain economic environment. Year-to-date equipment sales also benefited from revenue for scale updates resulting from a postal rate change in France.

EBIT increased38% in the quarter to $15 million and 3% in the year-to-date period to $53 million compared to the same periods in 2012 primarily due to ongoing cost reduction initiatives.

Enterprise Business Solutions

Enterprise Business Solutions revenue for the quarter was flat compared to the prior year quarter at $222 million and up 4% for the year-to-date period to $683 million compared to the 2012 year-to-date period. EBIT increased6% in the quarter to $31 million compared to the prior year quarter, but decreased11% in the year-to-date period to $99 million compared to the 2012 year-to-date period.

Production Mail

Revenue for the Production Mail segment increased1% to $116 million and 7% to $360 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012. Equipment sales increased 6% in the quarter primarily due to the installation of a production printer in New Zealand and 24% in the year-to-date period primarily due to the installation of large production printers and inserters in North America. Supplies revenue for the quarter more than doubled the prior year amount and was up 83% for the year-to-date period compared to the 2012 year-to-date period primarily due to the growing base of production printers and inserting equipment.

EBIT for the quarter and year-to-date periods increased5% to $11 million, and 20% to $34 million, respectively, compared to the prior year quarter and year-to-date periods, primarily due to the increase in revenue and cost-reduction and productivity improvement initiatives.

Presort Services

Revenue for the Presort Services segment decreased1% to $105 million and was flat at $323 million in the quarter and year-to-date periods, respectively, compared to the same periods in 2012. While total presort mail volumes were up 1% in both the quarter and year-to-date periods compared to the prior year periods, revenue was negatively impacted by a shift from direct mail to first class mail and reduced discounts in certain presort categories.

EBIT for the quarter increased6% to $20 million primarily due to ongoing expense reductions. EBIT for the year-to-date period decreased21% to $65 million compared to the same period in 2012. EBIT for the prior year period includes an $11 million benefit from fire-related insurance recoveries. The remaining decrease is primarily due to margin compression.

Digital Commerce Solutions

Digital Commerce Solutions

Revenue for the Digital Commerce Solutions segment increased9% in the quarter to $152 million compared to the prior year quarter primarily due to a $16 million increase in revenue from our ecommerce cross-border package delivery solution and $3 million of revenue from our Volly^TM software. These increases were partially offset by lower marketing services fees of $7 million. EBIT for the quarter increased to $10 million from $3 million in the prior year quarter primarily due to higher revenue and cost-reduction and productivity improvement initiatives.

Revenue for the year-to-date period decreased2% to $420 million and EBIT decreased15% to $20 million compared to the prior year period. The decrease in revenue was primarily driven by lower worldwide software revenue of $17 million and lower marketing services fees of $17 million, partially offset by higher revenue from our ecommerce cross-border package delivery solution of $30 million. The decrease in EBIT was primarily driven by lower revenue. We continue to invest in the growth of our ecommerce offering but were able to offset the impact on EBIT with lower operating expenses from cost-reduction and productivity improvement initiatives.

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Goodwill Impairment Testing

As a result of the change in reporting segments, we reallocated goodwill among some of our segments and performed the required goodwill impairment test. The impairment test for goodwill is a two-step approach. In the first step, the fair value of each reporting unit is compared to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit is less than its carrying value, the second step of the goodwill impairment test is performed to measure the amount of impairment, if any. In the second step, the fair value of the reporting unit is allocated to the assets and liabilities of the reporting unit as if it had been acquired in a business combination and the purchase price was equivalent to the fair value of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is referred to as the implied fair value of goodwill. The implied fair value of the reporting unit's goodwill is then compared to the actual carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized for the difference.

Based on the results of the impairment tests, we determined that the estimated fair value of the reporting units impacted by the segment change exceeded their carrying value by 20% or more, except for the software operations business in our Digital Commerce Solutions segment. The estimated fair value of the software operations business exceeded its carrying value by 3%. The goodwill related to the software operations business was $684 million at September 30, 2013.

Significant estimates and assumptions are used in our goodwill impairment review and include the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units and determining the fair value of each reporting unit. The fair value of each reporting unit is determined based on a combination of techniques, including the present value of future cash flows, applicable multiples of competitors and multiples from sales of like businesses. The assumptions used to estimate fair value are based on projections incorporated in our current operating plans as well as other available information. The current operating plans include significant assumptions and estimates associated with sales growth, profitability and related cash flows, along with cash flows associated with taxes and capital spending. The determination of fair value also incorporates a risk-adjusted discount rate based on current interest rates and the economic conditions of the reporting unit. We also considered other assumptions that market participants may use. Changes in any of these estimates or assumptions could materially affect the determination of fair value for each reporting unit. Potential events and circumstances, such as the inability to acquire new clients, downward pressures on pricing and rising interest rates could have an adverse impact on our assumptions and result in non-cash impairment charges in future periods.

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LIQUIDITY AND CAPITAL RESOURCES

We believe that cash generated from operations, existing cash and investments, borrowing capacity under our commercial paper program and our credit facility are currently sufficient to support our cash needs, including business operations, debt repayments, customer deposits and discretionary uses such as capital investments, dividends and share repurchases. Cash and cash equivalents and short-term investments were $780 million at September 30, 2013 and $950 million at December 31, 2012.

We have had the ability to supplement short-term liquidity through our consistent and uninterrupted access to the commercial paper market to date. We have an effective shelf registration statement and the ability to fund the long-term needs of our business through broad and efficient access to capital markets, cash flow, proceeds from divestitures and a credit facility.

Within the last 12 months, the rating agencies reduced our credit ratings. There can be no assurances that one or more of the rating agencies will not take additional adverse actions in the future.

We continuously review our liquidity profile through published credit ratings and the credit default swap market. We also monitor the creditworthiness of those banks acting as derivative counterparties, depository banks or credit providers.

Cash Flow Summary

Net cash provided by operating activities for the nine months ended September 30, 2013 was $494 million compared to $405 million for the nine months ended September 30, 2012. The increase in cash flow from operations was driven by lower tax payments of $35 million, lower restructuring payments of $19 million and improved working capital, partially offset by the payment of the call premium and transaction fees in connection with the Tender Offer (see below). The prior year cash flow amount included a special pension plan cash contribution of $95 million.

Net cash used in investing activities for the nine months ended September 30, 2013 was $117 million compared to $61 million for the nine months ended September 30, 2012. Cash flow from investing activities in 2013 benefited from lower capital expenditures and the timing of investment maturities. Cash flow from investing activities in 2012 included proceeds of $106 million from the sale of leveraged lease assets.

Net cash used in financing activities for the nine months ended September 30, 2013 was $522 million compared to $777 million for the nine months ended September 30, 2012. See Financings and Capitalization section below for details of significant cash flows from financing activities.

Financings and Capitalization

We are a Well-Known Seasoned Issuer as defined in the Securities Act, which allows us to issue debt securities, preferred stock, preference stock, common stock, purchase contracts, depositary shares, warrants and units in an expedited fashion. We have a commercial paper program that is an important source of liquidity for us and a committed credit facility of $1.0 billion to support our commercial paper issuances. The credit facility expires in April 2016. We have not drawn upon the credit facility.

As of September 30, 2013, there were no outstanding commercial paper borrowings. During the quarter, commercial paper borrowings averaged $33 million at a weighted-average interest rate of 0.42% and the maximum amount outstanding at any time was $100 million.

On October 1, 2013, we received cash of $392 million from the sale of PBMS NA. On November 4, 2013, we used this cash to redeem the remaining $300 million of 4.875% outstanding notes that were scheduled to mature August 2014. Total cash payments, including principal, accrued interest and make-whole payment, were $314 million. In connection with this redemption, we also unwound an interest rate swap. We will recognize a net loss in the fourth quarter of $7 million associated with this redemption.

Through September 30, 2013, we have redeemed a total of $780 million of debt. In June 2013, the $375 million 3.875% notes matured and were redeemed with cash. We also completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees, partially offset by the net gain from the write-off of unamortized costs and the unwinding of interest rate swap agreements.

In March 2013, we issued $425 million of 6.7% fixed-rate 30-year notes (net proceeds received after fees and discount were $412 million). Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. The net proceeds were used to fund the Tender Offer.

38

Cash and cash equivalents held by our foreign subsidiaries are generally used to support the liquidity needs of these subsidiaries. Most of these amounts could be repatriated to the U.S. but would be subject to additional taxes. Repatriation of some foreign balances is restricted by local laws.Cash and cash equivalents held by our foreign subsidiaries were $413 million at September 30, 2013 and $219 million at December 31, 2012.

We paid dividends to our common stockholders in the amount of $151 million ($0.75 per share) for the nine months ended September 30, 2013 and $225 million ($1.125 per share) for the nine months ended September 30, 2012. Each quarter, our Board of Directors considers our recent and projected earnings and other capital needs and priorities in deciding whether to approve the amount and payment of a dividend. There are no material restrictions on our ability to declare dividends.

Regulatory Matters

There have been no significant changes to the regulatory matters disclosed in our 2012 Annual Report.

39

Item 3: Quantitative and Qualitative Disclosures about Market Risk

There were no material changes to the disclosures made in the 2012 Annual Report regarding this matter.

Item 4: Controls and Procedures

Disclosure controls and procedures are designed to reasonably assure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures are also designed to reasonably assure that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate to allow timely decisions regarding required disclosure.

Under the direction of our CEO and CFO, we evaluated our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) and internal control over financial reporting. Our CEO and CFO concluded that, as of the end of the period covered by this report, such disclosure controls and procedures were effective to ensure that information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Exchange Act. In addition, no changes in internal control over financial reporting occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, such internal control over financial reporting. It should be noted that any system of controls is based in part upon certain assumptions designed to obtain reasonable (and not absolute) assurance as to its effectiveness, and there can be no assurance that any design will succeed in achieving its stated goals. Notwithstanding this caution, the disclosure controls and procedures are designed to provide reasonable assurance of achieving their stated objectives, and the CEO and CFO have concluded that the disclosure controls and procedures are effective at that reasonable assurance level.

40

PART II. OTHER INFORMATION

Item 1: Legal Proceedings

See Note 14 to the Condensed Consolidated Financial Statements.

Item 1A: Risk Factors

There were no material changes to the risk factors identified in the 2012 Annual Report.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

Repurchases of Equity Securities

We periodically repurchase shares of our common stock to manage the dilution created by shares issued under employee stock plans and for other purposes in the open market. As of September 30, 2013, we have remaining authorization to repurchase up to $50 million of our common stock. There were no share repurchases during the quarter ended September 30, 2013.

Item 6: Exhibits

Exhibit Number	Description	Status or incorporation by reference
10	Stock and Asset Purchase Agreement by and among Pitney Bowes Inc., Pitney Bowes Limited, Pitney Bowes of Canada Ltd., Pitney Bowes Management Services, Inc., Pitney Bowes Government Solutions, Inc. and ARSloane Acquisition, LLC, dated as of July 29, 2013	Incorporated by reference to Exhibit 2.1 to Form 8-K as filed with the Commission on July 31, 2013 (Commission file number 1-3579)
12	Computation of ratio of earnings to fixed charges	Exhibit 12
31.1	Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended	Exhibit 31.1
31.2	Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended	Exhibit 31.2
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350	Exhibit 32.1
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350	Exhibit 32.2
101.INS	XBRL Report Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Definition Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

41

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		PITNEY BOWES INC.
Date:	November 8, 2013
		/s/ Michael Monahan
		Michael Monahan
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
		/s/ Steven J. Green
		Steven J. Green
		Vice President – Finance and Chief Accounting Officer
		(Principal Accounting Officer)

42

Exhibit Index

Exhibit Number	Description	Status or incorporation by reference
10	Stock and Asset Purchase Agreement by and among Pitney Bowes Inc., Pitney Bowes Limited, Pitney Bowes of Canada Ltd., Pitney Bowes Management Services, Inc., Pitney Bowes Government Solutions, Inc. and ARSloane Acquisition, LLC, dated as of July 29, 2013	Incorporated by reference to Exhibit 2.1 to Form 8-K as filed with the Commission on July 31, 2013 (Commission file number 1-3579)
12	Computation of ratio of earnings to fixed charges	Exhibit 12
31.1	Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended	Exhibit 31.1
31.2	Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended	Exhibit 31.2
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350	Exhibit 32.1
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350	Exhibit 32.2
101.INS	XBRL Report Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Definition Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

43

EX-12

Exhibit 12

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2013		2012		2013		2012
Income from continuing operations before income taxes	$	92,641	$	123,130	$	291,427	$	408,459
Add:
Interest expense (1)	47,814		47,145		149,573		148,646
Portion of rents representative of the interest factor	5,981		6,825		19,054		20,319
Amortization of capitalized interest	—		243		—		730
Income as adjusted	$	146,436	$	177,343	$	460,054	$	578,154
Fixed charges:
Interest expense (1)	$	47,814	$	47,145	$	149,573	$	148,646
Portion of rents representative of the interest factor	5,981		6,825		19,054		20,319
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes	6,960		6,760		20,881		19,600
Total fixed charges	$	60,755	$	60,730	$	189,508	$	188,565
Ratio of earnings to fixed charges (2)	2.41		2.92		2.43		3.07

(1) Interest expense includes both financing interest expense and other interest expense.

(2) The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes as adjusted by fixed charges. Included in fixed charges is one-third of rent expense as the representative portion of interest.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Marc B. Lautenbach, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Pitney Bowes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 8, 2013

/s/ Marc B. Lautenbach

Marc B. Lautenbach

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Monahan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Pitney Bowes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 8, 2013

/s/ Michael Monahan

Michael Monahan

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Pitney Bowes Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc B. Lautenbach, Chief Executive Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Marc B. Lautenbach

Marc B. Lautenbach

President and Chief Executive Officer

Date:    November 8, 2013

The foregoing certification is being furnished solely to accompany this report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Pitney Bowes Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Monahan, Chief Financial Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael Monahan

Michael Monahan

Executive Vice President and Chief Financial Officer

Date:    November 8, 2013

The foregoing certification is being furnished solely to accompany this report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company.

XML

Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries)

9 Months Ended

Sep. 30, 2013

Noncontrolling Interest [Abstract]

Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries)

Noncontrolling Interests (Preferred Stockholders’ Equity in Subsidiaries)

Pitney Bowes International Holdings, Inc. (PBIH), a subsidiary, has 300,000 shares, or $300 million, of outstanding perpetual voting preferred stock (the Preferred Stock) held by certain institutional investors. The holders of the Preferred Stock are entitled as a group to 25% of the combined voting power of all classes of capital stock of PBIH. All outstanding common stock of PBIH, representing the remaining 75% of the combined voting power of all classes of capital stock, is owned directly or indirectly by the company. The Preferred Stock is entitled to cumulative dividends at a rate of 6.125% through 2016 after which it becomes callable and, if it remains outstanding, will yield a dividend that increases by 50% every six months thereafter. No dividends were in arrears at September 30, 2013 or December 31, 2012. There was no change in the carrying value of noncontrolling interests during the period ended September 30, 2013 or the year ended December 31, 2012.

XML

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Effective Income Tax Rate	12.30%	24.80%	19.10%	20.80%
Tax Benefit From An Affiliate Reorganization			$ 13
Income Tax Reconciliation, Tax Planning Initiatives	4		11
Tax Benefit From Sale Of Non U S Leverage Lease				17
Tax benefit related to foreign tax		36		58
Tax Accrual For Repatriation Of Foreign Earnings			28
Effective Income Tax Rate Reconciliation, Other Adjustments	5
Income Tax Reconciliation, Change in Enacted Tax Rate	$ 4

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Statement of Other Comprehensive Income [Abstract]
Net unrealized gain (loss) on cash flow hedges, tax	$ 41		$ 21		$ 615		$ 374
Net unrealized loss on investment securities, tax	(142)		377		(2,984)		618
Amortization of pension and postretirement costs, tax	$ 4,347	[1],[2]	$ 6,404	[1],[2]	$ 15,613	[1],[2]	$ 20,371	[1],[2]

[1] These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

[2] Amounts in parentheses indicate debits (reductions) to income.

XML

Finance Assets

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Finance Assets

Finance Assets

Finance Receivables

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 customers for postage and related supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances.

Finance receivables consisted of the following:

	September 30, 2013
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,466,556		$	446,810		$	1,913,366
Unguaranteed residual values	127,846			21,248			149,094
Unearned income	(299,700		)	(100,451		)	(400,151		)
Allowance for credit losses	(15,326		)	(7,823		)	(23,149		)
Net investment in sales-type lease receivables	1,279,376			359,784			1,639,160
Loan receivables
Loan receivables	389,828			51,455			441,283
Allowance for credit losses	(11,498		)	(1,849		)	(13,347		)
Net investment in loan receivables	378,330			49,606			427,936
Net investment in finance receivables	$	1,657,706		$	409,390		$	2,067,096
	December 31, 2012
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,581,711		$	461,510		$	2,043,221
Unguaranteed residual values	148,664			21,025			169,689
Unearned income	(316,030		)	(104,258		)	(420,288		)
Allowance for credit losses	(16,979		)	(8,662		)	(25,641		)
Net investment in sales-type lease receivables	1,397,366			369,615			1,766,981
Loan receivables
Loan receivables	414,960			47,293			462,253
Allowance for credit losses	(12,322		)	(2,131		)	(14,453		)
Net investment in loan receivables	402,638			45,162			447,800
Net investment in finance receivables	$	1,800,004		$	414,777		$	2,214,781

Allowance for Credit Losses and Aging of Receivables

We estimate our finance receivable risks and provide an allowance for credit losses accordingly. We evaluate the adequacy of the allowance for credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral and make adjustments to the allowance as necessary. This evaluation is inherently subjective and actual results may differ significantly from estimated reserves.

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 unsecured loan receivables that are more than 90 days past due. We resume revenue recognition when payments reduce the account balance aging to 60 days or less 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. We believe that our finance receivable credit risk is limited because of our large number of clients, small account balances for most of our clients, and geographic and industry diversification.

Activity in the allowance for credit losses for the nine months ended September 30, 2013 and 2012 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2013	$	16,979		$	8,662		$	12,322		$	2,131		$	40,094
Amounts charged to expense	4,617			2,031			7,265			793			14,706
Accounts written off	(6,270		)	(2,870		)	(8,089		)	(1,075		)	(18,304		)
Balance at September 30, 2013	$	15,326		$	7,823		$	11,498		$	1,849		$	36,496
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2012	$	28,661		$	12,039		$	20,272		$	2,458		$	63,430
Amounts charged to expense	1,171			1,489			4,069			703			7,432
Accounts written off	(12,694		)	(3,708		)	(8,864		)	(973		)	(26,239		)
Balance at September 30, 2012	$	17,138		$	9,820		$	15,477		$	2,188		$	44,623

Aging of Receivables

The aging of gross finance receivables at September 30, 2013 and December 31, 2012 was as follows:

	September 30, 2013
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,400,998	$	417,881	$	372,330	$	49,330	$	2,240,539
> 30 days and < 61 days	27,467		8,845		9,233		1,276		46,821
> 60 days and < 91 days	18,255		5,346		3,544		431		27,576
> 90 days and < 121 days	5,383		3,982		2,026		221		11,612
> 120 days	14,453		10,756		2,695		197		28,101
Total	$	1,466,556	$	446,810	$	389,828	$	51,455	$	2,354,649
Past due amounts > 90 days
Still accruing interest	$	5,383	$	3,982	$	—	$	—	$	9,365
Not accruing interest	14,453		10,756		4,721		418		30,348
Total	$	19,836	$	14,738	$	4,721	$	418	$	39,713

	December 31, 2012
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,497,797	$	435,780	$	392,108	$	45,324	$	2,371,009
> 30 days and < 61 days	37,348		9,994		12,666		1,368		61,376
> 60 days and < 91 days	24,059		5,198		4,577		285		34,119
> 90 days and < 121 days	6,665		3,327		2,319		179		12,490
> 120 days	15,842		7,211		3,290		137		26,480
Total	$	1,581,711	$	461,510	$	414,960	$	47,293	$	2,505,474
Past due amounts > 90 days
Still accruing interest	$	6,665	$	3,327	$	—	$	—	$	9,992
Not accruing interest	15,842		7,211		5,609		316		28,978
Total	$	22,507	$	10,538	$	5,609	$	316	$	38,970

Credit Quality

The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client’s financial condition and, when applicable, payment history. 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 ensure 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. We do not use a third party to score our International portfolios because the cost to do so is prohibitive, it is a localized process and there is no single credit score model that covers all countries.

The table below shows the North America portfolio at September 30, 2013 and December 31, 2012 by relative risk class (low, medium, high) based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. 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, as defined by the third party, refers to the relative risk that an account in the next 12 month period may become delinquent.

• 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.

	September 30, 2013		December 31, 2012
Sales-type lease receivables
Low	$	1,097,080	$	1,016,413
Medium	260,434		450,432
High	53,569		43,658
Not Scored	55,473		71,208
Total	$	1,466,556	$	1,581,711
Loan receivables
Low	$	271,874	$	254,567
Medium	92,579		136,069
High	11,666		14,624
Not Scored	13,709		9,700
Total	$	389,828	$	414,960

Troubled Debt

We maintain a program for U.S. clients in our North America loan portfolio who are experiencing financial difficulties, but are able to make reduced payments over an extended period of time. Upon acceptance into the program, the client’s credit line is closed and interest accrual is suspended. There is generally no forgiveness of debt or reduction of balances owed. The balance of loans in this program, related loan loss allowance and write-offs are insignificant to the overall portfolio.

Leveraged Leases

Our investment in leveraged lease assets at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013			December 31, 2012
Rental receivables	$	68,918		$	83,254
Unguaranteed residual values	13,644			14,177
Principal and interest on non-recourse loans	(41,836		)	(55,092		)
Unearned income	(5,868		)	(7,793		)
Investment in leveraged leases	34,858			34,546
Less: deferred taxes related to leveraged leases	(16,319		)	(19,372		)
Net investment in leveraged leases	$	18,539		$	15,174

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Subsequent Event (Notes)

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Event

17. Subsequent Event

On November 4, 2013, we redeemed the remaining $300 million of 4.875% outstanding notes that were scheduled to mature August 2014. Total cash payments, including principal, accrued interest and make-whole payment, were $314 million. In connection with this redemption, we also unwound an interest rate swap. We will recognize a net loss in the fourth quarter of $7 million associated with this redemption.

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Subsequent Event (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Management Services - North America	Sep. 30, 2013 Debt Due 2014 [Member]		Dec. 31, 2012 Debt Due 2014 [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount						$ 299,570,000		$ 450,000,000
Debt Instrument, Interest Rate, Stated Percentage						4.875%	[1],[2]
Subsequent Event, Disposition of Business, Transaction Costs	314,000,000
Revenues	$ 938,786,000	$ 949,789,000	$ 2,838,214,000	$ 2,899,548,000	$ 7,000,000

[1] Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements.

[2] During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Changes in stockholders’ equity for the nine months ended September 30, 2013 and 2012 were as follows:

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2013	$	4	$	648		$	323,338	$	223,847		$	4,744,802		$	(681,213	)	$	(4,500,795	)	$	110,631
Net income	—		—			—		—			52,746			—			—			52,746
Other comprehensive income	—		—			—		—			—			(15,380		)	—			(15,380		)
Cash dividends
Common ($0.75 per share)	—		—			—		—			(150,920		)	—			—			(150,920		)
Preference	—		—			—		—			(35		)	—			—			(35		)
Issuances of common stock	—		—			—		(33,412		)	—			—			35,546			2,134
Conversions to common stock	—		(40		)	—		(853		)	—			—			893			—
Stock-based compensation expense	—		—			—		12,061			—			—			—			12,061
Balance at September 30, 2013	$	4	$	608		$	323,338	$	201,643		$	4,646,593		$	(696,593	)	$	(4,464,356	)	$	11,237

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2012	$	4	$	659		$	323,338	$	240,584		$	4,600,217		$	(661,645	)	$	(4,542,143	)	$	(38,986	)
Net income	—		—			—		—			334,826			—			—			334,826
Other comprehensive income	—		—			—		—			—			35,777			—			35,777
Cash dividends
Common ($1.125 per share)	—		—			—		—			(225,244		)	—			—			(225,244		)
Preference	—		—			—		—			(38		)	—			—			(38		)
Issuances of common stock	—		—			—		(31,306		)	—			—			36,138			4,832
Conversions to common stock	—		(6		)	—		(124		)	—			—			130			—
Stock-based compensation expense	—		—			—		13,466			—			—			—			13,466
Balance at September 30, 2012	$	4	$	653		$	323,338	$	222,620		$	4,709,761		$	(625,868	)	$	(4,505,875	)	$	124,633

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Intangible Assets and Goodwill 3 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013		Dec. 31, 2012
Goodwill [Line Items]
Gross value before accumulated impairment			$ 2,284,603
Accumulated impairment			(148,465)
Impairment	(101,415)	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			2,136,138
Other	(3,058)	[2]
Goodwill, ending period	1,729,178		2,136,138
Goodwill including Discontinued Operations	2,031,665
North America Mailing
Goodwill [Line Items]
Gross value before accumulated impairment			355,874
Accumulated impairment			0
Impairment	0	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			355,874
Other	2,439	[2]
Goodwill, ending period	358,313		355,874
International Mailing
Goodwill [Line Items]
Gross value before accumulated impairment			183,908
Accumulated impairment			0
Impairment	(1,162)	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			183,908
Other	(1,633)	[2]
Goodwill, ending period	181,113		183,908
Small & Medium Business Solutions
Goodwill [Line Items]
Gross value before accumulated impairment			539,782
Accumulated impairment			0
Impairment	(1,162)	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			539,782
Other	806	[2]
Goodwill, ending period	539,426		539,782
Production Mail
Goodwill [Line Items]
Gross value before accumulated impairment			131,865
Accumulated impairment			0
Impairment	0	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			131,865
Other	(15,050)	[2]
Goodwill, ending period	116,815		131,865
Management Services
Goodwill [Line Items]
Gross value before accumulated impairment			488,399
Accumulated impairment			(84,500)
Impairment	(100,253)	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			403,899
Other	(1,159)	[2]
Goodwill, ending period	302,487		403,899
Management Services | Assets Held-for-sale [Member]
Goodwill [Roll Forward]
Goodwill, ending period	(302,487)
Mail Services
Goodwill [Line Items]
Gross value before accumulated impairment			259,106
Accumulated impairment			(63,965)
Impairment	0	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			195,141
Other	0	[2]
Goodwill, ending period	195,141		195,141
Enterprise Business Solutions
Goodwill [Line Items]
Gross value before accumulated impairment			879,370
Accumulated impairment			(148,465)
Impairment	(100,253)	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			730,905
Other	(16,209)	[2]
Goodwill, ending period	614,443		730,905
Digital Commerce Solutions [Member]
Goodwill [Line Items]
Gross value before accumulated impairment			865,451
Accumulated impairment			0
Impairment	0	[1]
Goodwill [Roll Forward]
Goodwill, beginning period			865,451
Other	12,345	[2]
Goodwill, ending period	$ 877,796		$ 865,451

[1]

[2] foreign currency translation adjustments

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Finance Assets (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Sales-type Lease Receivables
Gross finance receivables	$ 1,913,366		$ 2,043,221
Unguaranteed residual values	149,094		169,689
Unearned income	(400,151)		(420,288)
Allowance for credit losses	(23,149)		(25,641)
Net investment in sales-type lease receivables	1,639,160		1,766,981
Loan Receivables
Loan receivables	441,283		462,253
Allowance for credit losses	(13,347)		(14,453)
Net investment in loan receivables	427,936		447,800
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning	40,094	63,430
Amounts charged to expense	14,706	7,432
Accounts written off	(18,304)	(26,239)
Balance Closing	36,496	44,623
Financing Receivable, Recorded Investment, Aging [Abstract]
Less than 31 days past due	2,240,539		2,371,009
Greater than 30 days and Less than 61 days	46,821		61,376
Greater than 60 days and Less than 91 days	27,576		34,119
Greater than 90 days and Less than 121 days	11,612		12,490
Greater than 120 days	28,101		26,480
Notes, Loans and Financing Receivable, Gross	2,354,649		2,505,474
Still accruing interest	9,365		9,992
Not accruing interest	30,348		28,978
Total	39,713		38,970
Loans and Leases Receivable, Net Reported Amount	2,067,096		2,214,781
Risk Level, Low
Allowance for Loan and Lease Losses [Roll Forward]
Approximate percentage of portfolio	30.00%
Risk Level, Medium
Allowance for Loan and Lease Losses [Roll Forward]
Approximate percentage of portfolio	40.00%
Risk Level, High
Allowance for Loan and Lease Losses [Roll Forward]
Approximate percentage of portfolio	30.00%
North America
Sales-type Lease Receivables
Net investment in sales-type lease receivables	1,279,376		1,397,366
Loan Receivables
Net investment in loan receivables	378,330		402,638
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans and Leases Receivable, Net Reported Amount	1,657,706		1,800,004
International
Sales-type Lease Receivables
Net investment in sales-type lease receivables	359,784		369,615
Loan Receivables
Net investment in loan receivables	49,606		45,162
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans and Leases Receivable, Net Reported Amount	409,390		414,777
Sales-type lease receivables
Sales-type Lease Receivables
Gross finance receivables	1,466,556		1,581,711
Sales-type lease receivables | Risk Level, Low
Sales-type Lease Receivables
Gross finance receivables	1,097,080		1,016,413
Sales-type lease receivables | Risk Level, Medium
Sales-type Lease Receivables
Gross finance receivables	260,434		450,432
Sales-type lease receivables | Risk Level, High
Sales-type Lease Receivables
Gross finance receivables	53,569		43,658
Sales-type lease receivables | Not Scored
Sales-type Lease Receivables
Gross finance receivables	55,473		71,208
Sales-type lease receivables | North America
Sales-type Lease Receivables
Gross finance receivables	1,466,556		1,581,711
Unguaranteed residual values	127,846		148,664
Unearned income	(299,700)		(316,030)
Allowance for credit losses	(15,326)		(16,979)
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning	16,979	28,661
Amounts charged to expense	4,617	1,171
Accounts written off	(6,270)	(12,694)
Balance Closing	15,326	17,138
Financing Receivable, Recorded Investment, Aging [Abstract]
Less than 31 days past due	1,400,998		1,497,797
Greater than 30 days and Less than 61 days	27,467		37,348
Greater than 60 days and Less than 91 days	18,255		24,059
Greater than 90 days and Less than 121 days	5,383		6,665
Greater than 120 days	14,453		15,842
Still accruing interest	5,383		6,665
Not accruing interest	14,453		15,842
Total	19,836		22,507
Sales-type lease receivables | International
Sales-type Lease Receivables
Gross finance receivables	446,810		461,510
Unguaranteed residual values	21,248		21,025
Unearned income	(100,451)		(104,258)
Allowance for credit losses	(7,823)		(8,662)
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning	8,662	12,039
Amounts charged to expense	2,031	1,489
Accounts written off	(2,870)	(3,708)
Balance Closing	7,823	9,820
Financing Receivable, Recorded Investment, Aging [Abstract]
Less than 31 days past due	417,881		435,780
Greater than 30 days and Less than 61 days	8,845		9,994
Greater than 60 days and Less than 91 days	5,346		5,198
Greater than 90 days and Less than 121 days	3,982		3,327
Greater than 120 days	10,756		7,211
Still accruing interest	3,982		3,327
Not accruing interest	10,756		7,211
Total	14,738		10,538
Loan receivables
Loan Receivables
Loan receivables	389,828		414,960
Loan receivables | Risk Level, Low
Loan Receivables
Loan receivables	271,874		254,567
Loan receivables | Risk Level, Medium
Loan Receivables
Loan receivables	92,579		136,069
Loan receivables | Risk Level, High
Loan Receivables
Loan receivables	11,666		14,624
Loan receivables | Not Scored
Loan Receivables
Loan receivables	13,709		9,700
Loan receivables | North America
Loan Receivables
Loan receivables	389,828		414,960
Allowance for credit losses	(11,498)		(12,322)
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning	12,322	20,272
Amounts charged to expense	7,265	4,069
Accounts written off	(8,089)	(8,864)
Balance Closing	11,498	15,477
Financing Receivable, Recorded Investment, Aging [Abstract]
Less than 31 days past due	372,330		392,108
Greater than 30 days and Less than 61 days	9,233		12,666
Greater than 60 days and Less than 91 days	3,544		4,577
Greater than 90 days and Less than 121 days	2,026		2,319
Greater than 120 days	2,695		3,290
Still accruing interest	0		0
Not accruing interest	4,721		5,609
Total	4,721		5,609
Loan receivables | International
Loan Receivables
Loan receivables	51,455		47,293
Allowance for credit losses	(1,849)		(2,131)
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning	2,131	2,458
Amounts charged to expense	793	703
Accounts written off	(1,075)	(973)
Balance Closing	1,849	2,188
Financing Receivable, Recorded Investment, Aging [Abstract]
Less than 31 days past due	49,330		45,324
Greater than 30 days and Less than 61 days	1,276		1,368
Greater than 60 days and Less than 91 days	431		285
Greater than 90 days and Less than 121 days	221		179
Greater than 120 days	197		137
Still accruing interest	0		0
Not accruing interest	418		316
Total	$ 418		$ 316

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Fair Value Measurements and Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Available-for-sale Securities

Scheduled maturities of investment securities at September 30, 2013 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	55,811	$	55,853
After 1 year through 5 years	61,774		62,635
After 5 years through 10 years	62,694		62,301
After 10 years	162,288		161,276
Total	$	342,567	$	342,065

Schedule of Available-for-sale Securities Reconciliation

Available-for-sale securities at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	36,134	$	—	$	(13	)	$	36,121
Debt securities - U.S. and foreign governments, agencies and municipalities	116,146		1,405		(2,441		)	115,110
Debt securities - corporate	31,084		915		(465		)	31,534
Mortgage-backed / asset-backed securities	159,203		1,855		(1,758		)	159,300
Total	$	342,567	$	4,175	$	(4,677	)	$	342,065

	December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	44,611	$	53	$	—		$	44,664
Debt securities - U.S. and foreign governments, agencies and municipalities	127,807		3,972		(56		)	131,723
Debt securities - corporate	41,095		2,851		(20		)	43,926
Mortgage-backed / asset-backed securities	162,180		3,340		(3,145		)	162,375
Total	$	375,693	$	10,216	$	(3,221	)	$	382,688

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

		Three Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(6,798	)	$	939
		Nine Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(12,793	)	$	(2,129	)

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

	Three Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	(343	)	$	(863	)	Revenue	$	(169	)	$	456
							Cost of sales	108			(56		)
								$	(61	)	$	400
	Nine Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	457		$	(1,672	)	Revenue	$	(922	)	$	1,230
							Cost of sales	520			(129		)
								$	(402	)	$	1,101

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Designation of Derivatives	Balance Sheet Location	September 30, 2013			December 31, 2012
Derivatives designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	$	398		$	78
	Other assets:
	Interest rate swaps	1,855			10,117
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(584		)	(320		)
Derivatives not designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	1,447			2,504
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(4,889		)	(854		)
	Total derivative assets	$	3,700		$	12,699
	Total derivative liabilities	(5,473		)	(1,174		)
	Total net derivative (liabilities) assets	$	(1,773	)	$	11,525

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

	September 30, 2013
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	194,486	$	147,259		$	—	$	341,745
Equity securities	—		25,384			—		25,384
Commingled fixed income securities	—		26,772			—		26,772
Debt securities - U.S. and foreign governments, agencies and municipalities	118,071		18,049			—		136,120
Debt securities - corporate	—		31,534			—		31,534
Mortgage-backed / asset-backed securities	—		159,300			—		159,300
Derivatives
Interest rate swaps	—		1,855			—		1,855
Foreign exchange contracts	—		1,845			—		1,845
Total assets	$	312,557	$	411,998		$	—	$	724,555
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(5,473	)	$	—	$	(5,473	)
Total liabilities	$	—	$	(5,473	)	$	—	$	(5,473	)

	December 31, 2012
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	581,648	$	34,369		$	—	$	616,017
Equity securities	—		25,106			—		25,106
Commingled fixed income securities	—		29,359			—		29,359
Debt securities - U.S. and foreign governments, agencies and municipalities	124,221		18,908			—		143,129
Debt securities - corporate	—		43,926			—		43,926
Mortgage-backed / asset-backed securities	—		162,375			—		162,375
Derivatives
Interest rate swaps	—		10,117			—		10,117
Foreign exchange contracts	—		2,582			—		2,582
Total assets	$	705,869	$	326,742		$	—	$	1,032,611
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(1,174	)	$	—	$	(1,174	)
Total liabilities	$	—	$	(1,174	)	$	—	$	(1,174	)

Fair Value, by Balance Sheet Grouping

	September 30, 2013		December 31, 2012
Carrying value	$	3,650,590	$	4,017,375
Fair value	$	3,867,130	$	4,200,970

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

		Three Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	863	$	1,578	$	(2,742	)	$	(5,484	)
		Nine Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	3,631	$	8,351	$	(10,969	)	$	(25,652	)

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Finance Assets (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Financing Receivables

Finance receivables consisted of the following:

	September 30, 2013
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,466,556		$	446,810		$	1,913,366
Unguaranteed residual values	127,846			21,248			149,094
Unearned income	(299,700		)	(100,451		)	(400,151		)
Allowance for credit losses	(15,326		)	(7,823		)	(23,149		)
Net investment in sales-type lease receivables	1,279,376			359,784			1,639,160
Loan receivables
Loan receivables	389,828			51,455			441,283
Allowance for credit losses	(11,498		)	(1,849		)	(13,347		)
Net investment in loan receivables	378,330			49,606			427,936
Net investment in finance receivables	$	1,657,706		$	409,390		$	2,067,096
	December 31, 2012
	North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,581,711		$	461,510		$	2,043,221
Unguaranteed residual values	148,664			21,025			169,689
Unearned income	(316,030		)	(104,258		)	(420,288		)
Allowance for credit losses	(16,979		)	(8,662		)	(25,641		)
Net investment in sales-type lease receivables	1,397,366			369,615			1,766,981
Loan receivables
Loan receivables	414,960			47,293			462,253
Allowance for credit losses	(12,322		)	(2,131		)	(14,453		)
Net investment in loan receivables	402,638			45,162			447,800
Net investment in finance receivables	$	1,800,004		$	414,777		$	2,214,781

Allowance for Credit Losses on Financing Receivables

Activity in the allowance for credit losses for the nine months ended September 30, 2013 and 2012 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2013	$	16,979		$	8,662		$	12,322		$	2,131		$	40,094
Amounts charged to expense	4,617			2,031			7,265			793			14,706
Accounts written off	(6,270		)	(2,870		)	(8,089		)	(1,075		)	(18,304		)
Balance at September 30, 2013	$	15,326		$	7,823		$	11,498		$	1,849		$	36,496
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2012	$	28,661		$	12,039		$	20,272		$	2,458		$	63,430
Amounts charged to expense	1,171			1,489			4,069			703			7,432
Accounts written off	(12,694		)	(3,708		)	(8,864		)	(973		)	(26,239		)
Balance at September 30, 2012	$	17,138		$	9,820		$	15,477		$	2,188		$	44,623

Past Due Financing Receivables

The aging of gross finance receivables at September 30, 2013 and December 31, 2012 was as follows:

	September 30, 2013
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,400,998	$	417,881	$	372,330	$	49,330	$	2,240,539
> 30 days and < 61 days	27,467		8,845		9,233		1,276		46,821
> 60 days and < 91 days	18,255		5,346		3,544		431		27,576
> 90 days and < 121 days	5,383		3,982		2,026		221		11,612
> 120 days	14,453		10,756		2,695		197		28,101
Total	$	1,466,556	$	446,810	$	389,828	$	51,455	$	2,354,649
Past due amounts > 90 days
Still accruing interest	$	5,383	$	3,982	$	—	$	—	$	9,365
Not accruing interest	14,453		10,756		4,721		418		30,348
Total	$	19,836	$	14,738	$	4,721	$	418	$	39,713

	December 31, 2012
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
< 31 days	$	1,497,797	$	435,780	$	392,108	$	45,324	$	2,371,009
> 30 days and < 61 days	37,348		9,994		12,666		1,368		61,376
> 60 days and < 91 days	24,059		5,198		4,577		285		34,119
> 90 days and < 121 days	6,665		3,327		2,319		179		12,490
> 120 days	15,842		7,211		3,290		137		26,480
Total	$	1,581,711	$	461,510	$	414,960	$	47,293	$	2,505,474
Past due amounts > 90 days
Still accruing interest	$	6,665	$	3,327	$	—	$	—	$	9,992
Not accruing interest	15,842		7,211		5,609		316		28,978
Total	$	22,507	$	10,538	$	5,609	$	316	$	38,970

Financing Receivable Credit Quality Indicators

	September 30, 2013		December 31, 2012
Sales-type lease receivables
Low	$	1,097,080	$	1,016,413
Medium	260,434		450,432
High	53,569		43,658
Not Scored	55,473		71,208
Total	$	1,466,556	$	1,581,711
Loan receivables
Low	$	271,874	$	254,567
Medium	92,579		136,069
High	11,666		14,624
Not Scored	13,709		9,700
Total	$	389,828	$	414,960

Schedule of Components of Leveraged Lease Investments

Our investment in leveraged lease assets at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013			December 31, 2012
Rental receivables	$	68,918		$	83,254
Unguaranteed residual values	13,644			14,177
Principal and interest on non-recourse loans	(41,836		)	(55,092		)
Unearned income	(5,868		)	(7,793		)
Investment in leveraged leases	34,858			34,546
Less: deferred taxes related to leveraged leases	(16,319		)	(19,372		)
Net investment in leveraged leases	$	18,539		$	15,174

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Intangible Assets and Goodwill (Details) (USD $)	3 Months Ended			9 Months Ended														3 Months Ended
	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Customer relationships	Dec. 31, 2012 Customer relationships	Sep. 30, 2013 Supplier relationships	Dec. 31, 2012 Supplier relationships	Sep. 30, 2013 Software & technology	Dec. 31, 2012 Software & technology	Sep. 30, 2013 Trademark & trade names	Dec. 31, 2012 Trademark & trade names	Sep. 30, 2013 Non-compete agreements	Dec. 31, 2012 Non-compete agreements	Sep. 30, 2013 Total intangible assets	Dec. 31, 2012 Total intangible assets	Sep. 30, 2013 Management Services
Finite lived intangible assets
Gross Carrying Amount						$ 353,241,000	$ 407,901,000	$ 29,000,000	$ 29,000,000	$ 166,397,000	$ 169,632,000	$ 35,177,000	$ 35,078,000	$ 7,349,000	$ 7,471,000	$ 591,164,000	$ 649,082,000
Accumulated Amortization						(244,275,000)	(269,100,000)	(24,288,000)	(22,113,000)	(153,153,000)	(151,628,000)	(33,549,000)	(32,615,000)	(7,311,000)	(7,412,000)	(462,576,000)	(482,868,000)
Finite lived intangible assets, net	128,588,000			128,588,000		108,966,000	138,801,000	4,712,000	6,887,000	13,244,000	18,004,000	1,628,000	2,463,000	38,000	59,000	128,588,000	166,214,000
Finite Lived Intangible Assets Amortization Expense	8,000,000		9,000,000	26,000,000	30,000,000
Goodwill, Impairment Loss	$ 101,415,000	[1]																$ 100,253,000	[1]

[1]

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Pensions and Other Benefit Programs (Tables)

9 Months Ended

Sep. 30, 2013

Pension And Other Postretirement Benefits Disclosure (Tables) [Abstract]

Schedule of Defined Benefit Plans Disclosures

	Three Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	3,597		$	4,735		$	968		$	1,774
Interest cost	18,264			20,260			1,870			6,909
Expected return on plan assets	(26,781		)	(30,406		)	(3,266		)	(8,069		)
Amortization of transition credit	—			—			(2		)	(2		)
Amortization of prior service cost	95			200			28			28
Amortization of net actuarial loss	7,690			13,240			2,873			3,558
Settlement	145			—			—			192
Special termination benefits	—			—			104			—
Net periodic benefit cost	$	3,010		$	8,029		$	2,575		$	4,390

	Nine Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	10,890		$	14,204		$	5,280		$	5,805
Interest cost	55,169			60,780			25,246			20,766
Expected return on plan assets	(80,908		)	(91,218		)	(31,187		)	(24,133		)
Amortization of transition credit	—			—			(6		)	(6		)
Amortization of prior service cost	318			602			84			83
Amortization of net actuarial loss	26,234			39,719			11,511			10,546
Settlement	1,561			—			—			442
Special termination benefits	548			—			104			—
Curtailment	814			—			—			—
Net periodic benefit cost	$	14,626		$	24,087		$	11,032		$	13,503

Schedule of Non Pension Postretirement Benefit Plans Disclosures

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Service cost	$	935	$	801		$	2,966	$	2,560
Interest cost	2,186		2,896			7,210		8,685
Amortization of prior service cost (credit)	40		(523		)	122		(1,569		)
Amortization of net actuarial loss	1,573		2,054			6,293		6,111
Net periodic benefit cost	$	4,734	$	5,228		$	16,591	$	15,787

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Discontinued Operations (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses				$ 2,627,000		$ 0
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Disposal Group, Including Discontinued Operation, Revenue	206,529,000		265,887,000	700,058,000		817,604,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	(19,891,000)			(123,927,000)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	18,930,000			15,017,000
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	(961,000)		(15,516,000)	(108,910,000)		14,334,000
Discontinued Operation, Tax Effect of Discontinued Operation	81,243,000		(4,103,000)	60,459,000		(10,923,000)
Income (loss) from discontinued operations	(82,204,000)		(11,413,000)	(169,369,000)		25,257,000
Assets of Disposal Group, Including Discontinued Operation [Abstract]
Accounts receivables	145,955,000			145,955,000
Inventories	1,595,000			1,595,000
Other current assets and prepayments	11,948,000			11,948,000
Total current assets	159,498,000			159,498,000
Property, plant and equipment, net	77,001,000	[1]		77,001,000	[1]
Goodwill	1,729,178,000			1,729,178,000			2,136,138,000
Disposal Group, Including Discontinued Operation, Intangible Assets, Net	7,193,000			7,193,000
Other assets	4,462,000			4,462,000
Assets held for sale	550,641,000			550,641,000			0
Liabilities of Disposal Group, Including Discontinued Operation [Abstract]
Accounts payable and acrued liabilities	77,639,000			77,639,000
Advance billings	9,862,000			9,862,000
Total current liabilities	87,501,000			87,501,000
Other non current liabilities	30,676,000			30,676,000
Liabilities related to assets held for sale	118,177,000			118,177,000			0
Management Services
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Disposal Group, Including Discontinued Operation, Revenue	194,511,000		220,887,000	639,237,000		679,080,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	(14,438,000)			(116,018,000)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	13,269,000			13,269,000
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	(1,169,000)		14,491,000	(102,749,000)		47,015,000
Discontinued Operation, Tax Effect of Discontinued Operation	81,084,000		7,210,000	61,679,000		20,589,000
Income (loss) from discontinued operations	(82,253,000)		7,281,000	(164,428,000)		26,426,000
Mail Services - International
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Disposal Group, Including Discontinued Operation, Revenue	4,000		32,461,000	23,036,000		100,443,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	(1,072,000)			(3,050,000)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	1,196,000			(2,717,000)
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	124,000		(30,086,000)	(5,767,000)		(34,051,000)
Discontinued Operation, Tax Effect of Discontinued Operation	168,000		(11,335,000)	(1,076,000)		(12,563,000)
Income (loss) from discontinued operations	(44,000)		(18,751,000)	(4,691,000)		(21,488,000)
Nordic Furniture Business [Member]
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Disposal Group, Including Discontinued Operation, Revenue	12,014,000		12,539,000	37,785,000		38,081,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	(4,381,000)			(4,859,000)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	4,465,000			4,465,000
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	84,000		79,000	(394,000)		1,370,000
Discontinued Operation, Tax Effect of Discontinued Operation	(9,000)		22,000	(144,000)		383,000
Income (loss) from discontinued operations	93,000		57,000	(250,000)		987,000
Management Services - International
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax	20,000,000			36,000,000
Liabilities of Disposal Group, Including Discontinued Operation [Abstract]
Impairment charge	15,000,000
Goodwill impairment charge	100,000,000
Capital Services
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Disposal Group, Including Discontinued Operation, Revenue						0
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax						0
Discontinued Operation, Tax Effect of Discontinued Operation						(19,332,000)
Income (loss) from discontinued operations						19,332,000
Management Services - North America
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses	392,000,000
Management Services
Assets of Disposal Group, Including Discontinued Operation [Abstract]
Goodwill	$ 302,487,000			$ 302,487,000			$ 403,899,000

[1] lso includes the carrying value of our corporate headquarters building and certain surrounding parcels of land. See Note 6.

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Debt (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013		Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Debt Instrument [Line Items]
Extinguishment of Debt, Amount	$ 405,000,000
Gains (Losses) on Extinguishment of Debt	25,000,000
Derivative, Notional Amount	450,000,000		450,000,000
Notional Amount Of Interest Rate Derivatives Unwound During Period	225,000,000		225,000,000
Principal payments of long-term obligations			779,637,000		550,000,000
Short-term Debt, Weighted Average Interest Rate	0.42%		0.42%
Other	40,227,000	[1]	40,227,000	[1]		52,375,000	[1]
Total debt	3,650,590,000		3,650,590,000			4,017,375,000
Current portion	299,570,000		299,570,000			375,000,000
Long-term debt	3,351,020,000		3,351,020,000			3,642,375,000
Term loans
Debt Instrument [Line Items]
Debt Instrument, Face Amount	230,000,000		230,000,000			230,000,000
Debt due 2013
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.875%		3.875%
Debt Instrument, Face Amount	0	[2],[3]	0	[2],[3]		375,000,000	[2],[3]
Debt Due 2014 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.875%	[2],[3]	4.875%	[2],[3]
Debt Instrument, Face Amount	299,570,000		299,570,000			450,000,000
Debt due 2015
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	[3]	5.00%	[3]
Debt Instrument, Face Amount	274,879,000	[3]	274,879,000	[3]		400,000,000	[3]
Debt due 2016
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%	[3]	4.75%	[3]
Debt Instrument, Face Amount	370,914,000	[3]	370,914,000	[3]		500,000,000	[3]
Debt due 2017
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.75%		5.75%
Debt Instrument, Face Amount	500,000,000		500,000,000			500,000,000
Debt due 2019
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.25%		6.25%
Debt Instrument, Face Amount	300,000,000		300,000,000			300,000,000
Debt due 2022
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.25%		5.25%
Debt Instrument, Face Amount	110,000,000		110,000,000			110,000,000
Debt due 2037
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.25%		5.25%
Debt Instrument, Face Amount	500,000,000		500,000,000			500,000,000
Debt due 2043
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.70%	[4]	6.70%	[4]
Debt Instrument, Face Amount	425,000,000	[4]	425,000,000	[4]		0	[4]
Maximum
Debt Instrument [Line Items]
Commercial Paper	100,000,000		100,000,000
Average Borrowings
Debt Instrument [Line Items]
Commercial Paper	33,000,000		33,000,000
LIBOR | Debt due 2018
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.60%		5.60%
Debt Instrument, Face Amount	250,000,000		250,000,000			250,000,000
Prime Rate | Debt due 2018
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%		4.75%
Debt Instrument, Face Amount	$ 350,000,000		$ 350,000,000			$ 350,000,000

[1] Other consists of the unamortized proceeds received from unwinding of interest rate swaps, unamortized net debt discounts and the fair value adjustment of interest rate swaps.

[2] Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements.

[3] During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income.

[4] During the first quarter, we issued $425 million of 6.7% fixed rate 30-year notes. Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. We used the net proceeds from the notes to fund the Tender Offer.

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Debt (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following:

		September 30, 2013		December 31, 2012
Term loans		$	230,000	$	230,000
3.875%	notes due 2013	—		375,000
4.875%	notes due 2014 (1), (2)	299,570		450,000
5.0%	notes due 2015 (1)	274,879		400,000
4.75%	notes due 2016 (1)	370,914		500,000
5.75%	notes due 2017	500,000		500,000
5.60%	notes due 2018	250,000		250,000
4.75%	notes due 2018	350,000		350,000
6.25%	notes due 2019	300,000		300,000
5.25%	notes due 2022	110,000		110,000
5.25%	notes due 2037	500,000		500,000
6.70%	notes due 2043 (3)	425,000		—
Other (4)		40,227		52,375
Total debt		3,650,590		4,017,375
Current portion		299,570		375,000
Long-term debt		$	3,351,020	$	3,642,375

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Fair Value Measurements and Derivative Instruments Fair Value Measurements and Derivative Instruments Available For Sale Securities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 342,567	$ 375,693
Gross unrealized gains	4,175	10,216
Gross unrealized losses	(4,677)	(3,221)
Estimated fair value	342,065	382,688
Amortized cost - Within 1 year	55,811
Estimated fair value - Within 1 year	55,853
Amortized cost - After 1 year through 5 years	61,774
Estimated fair value - After 1 year through 5 years	62,635
Amortized cost - After 5 years through 10 years	62,694
Estimated fair value - After 5 years through 10 years	62,301
Amortized cost - After 10 years	162,288
Estimated fair value - After 10 years	161,276
Amortized cost - Total	342,567
Estimated fair value - Total	342,065
Money market funds / commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	36,134	44,611
Gross unrealized gains	0	53
Gross unrealized losses	(13)	0
Estimated fair value	36,121	44,664
Debt securities - U.S. and foreign governments, agencies and municipalities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	116,146	127,807
Gross unrealized gains	1,405	3,972
Gross unrealized losses	(2,441)	(56)
Estimated fair value	115,110	131,723
Debt securities - corporate
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	31,084	41,095
Gross unrealized gains	915	2,851
Gross unrealized losses	(465)	(20)
Estimated fair value	31,534	43,926
Mortgage-backed / asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	159,203	162,180
Gross unrealized gains	1,855	3,340
Gross unrealized losses	(1,758)	(3,145)
Estimated fair value	$ 159,300	$ 162,375

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Reconciliation Of E B I T From Segments To Consolidated [Table Text Block]

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
North America Mailing	$	167,433		$	168,934		$	488,301		$	514,975
International Mailing	15,456			11,206			52,967			51,670
Small & Medium Business Solutions	182,889			180,140			541,268			566,645
Production Mail	10,620			10,125			34,239			28,439
Presort Services	20,398			19,167			65,132			82,728
Enterprise Business Solutions	31,018			29,292			99,371			111,167
Digital Commerce Solutions	10,196			2,971			20,134			23,674
Total EBIT	224,103			212,403			660,773			701,486
Reconciling items:
Interest, net (1)	(46,357		)	(45,088		)	(145,066		)	(142,853		)
Unallocated corporate and other expenses	(50,196		)	(44,185		)	(170,340		)	(151,154		)
Restructuring charges and asset impairments	(34,909		)	—			(53,940		)	980
Income from continuing operations before income taxes	$	92,641		$	123,130		$	291,427		$	408,459

(1) Includes financing interest expense, other interest expense and interest income.

Reconciliation of Revenue From Segments to Consolidated Statements

	Revenues
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
North America Mailing	$	422,821	$	447,920	$	1,286,085	$	1,362,709
International Mailing	142,443		141,630		448,684		449,583
Small & Medium Business Solutions	565,264		589,550		1,734,769		1,812,292
Production Mail	116,477		114,889		360,352		337,582
Presort Services	105,093		105,909		322,954		322,401
Enterprise Business Solutions	221,570		220,798		683,306		659,983
Digital Commerce Solutions	151,952		139,441		420,139		427,273
Total revenue	$	938,786	$	949,789	$	2,838,214	$	2,899,548

XML

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable	$ 15,230	$ 20,219
Allowance for Notes, Loans and Financing Receivable, Current	25,007	25,484
Allowance for Notes, Loans and Financing Receivable, Noncurrent	$ 11,489	$ 14,610
Preferred stock par value	$ 50	$ 50
Preferred stock dividend rate, per-dollar dividend	4.00%	4.00%
Preference Stock No Par Value
Preference stock dividend rate, in dollars per share	$ 2.12	$ 2.12
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	480,000,000	480,000,000
Common stock, shares issued	323,337,912	323,337,912
Treasury stock, shares	121,462,568,000	122,453,865,000

XML

Description of Business and Basis of Presentation Description of Business and Basis of Presentation

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

Pitney Bowes Inc. and its subsidiaries (we, us, our or the company) is a global provider of technology solutions for small, mid-sized and large firms that help them connect to customers to build loyalty and grow revenue. We deliver our solutions on open platforms to best organize, analyze and apply public and proprietary data to two-way customer communications. We offer solutions for direct mail, transactional mail and call center communications, along with digital channel messaging for the Web, email and mobile applications. We conduct our business activities in five reporting segments. See Note 2 for information regarding our reportable segments.

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, 2012 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 state fairly 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, 2013.

During the third quarter of 2013, we entered into an agreement to sell the North America Management Services operations (PBMS NA) and our Nordic furniture business. In the second quarter of 2013, we entered into two separate agreements to sell the International Management Services business (PBMSi) and completed the sale of our International Mailing Services (IMS) operations related to the international delivery of mail and catalogs. PBMS (collectively PBMS NA and PBMSi), the Nordic furniture business and IMS are presented as discontinued operations in the Condensed Consolidated Statements of Income (Loss). The cash flows from discontinued operations for the nine months ended September 30, 2013 and 2012 are not separately stated and classified in the accompanying Condensed Consolidated Statements of Cash Flows. See Note 4 for additional information.

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, 2012 (the 2012 Annual Report).

Changes in Segment Presentation

As a result of certain organizational changes designed to realign our business units to reflect the clients served and how we review, analyze, measure and manage our operations, we have revised our business segment reporting (see Note 2). We have recast historical segment results to conform to our current segment presentation and to exclude discontinued operations.

Revision of Prior Period Amounts

During the third quarter of 2013, we determined that certain revenue previously reported as rentals revenue included a service component and should have been classified as support services revenue, and that certain research and development costs should have been classified as cost of software. Accordingly, the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30,2012 have been revised to reflect the correct classification, resulting in a decrease in rentals revenue and corresponding increase in support services revenue of $5 million and $13 million, respectively, and a decrease in research and development expenses and a corresponding increase in cost of software of $6 million and $17 million, respectively. These revisions did not impact previously reported total revenue, total costs and expenses, net income or earnings per share amounts.

We determined that the effect of these revisions was not material to any of our previously issued financial statements and will revise our previously issued financial statements to reflect these reclassification adjustments in future filings.

New Accounting Pronouncements

In January 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01).ASU 2013-01 requires an entity to disclose gross and net information about transactions that are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement, regardless of whether the transactions are actually offset in the statement of financial position. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The amounts impacting our disclosure were immaterial at September 30, 2013 and December 31, 2012.

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). ASU 2013-02 requires an entity to present either parenthetically on the face of the financial statements, or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The new standard is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of this standard resulted in additional disclosures, but did not impact our financial condition, results of operations or cash flows.

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 provides explicit guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryfoward exists. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect the application of this new guidance will have a material impact on our financial position.

Statement of Cash Flows

During the fourth quarter of 2012, we determined that changes in certain investment-related working capital accounts that were classified as cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows should have been classified as cash flows from investing activities. Accordingly, the Condensed Consolidated Statement of Cash Flows for the period ended September 30, 2012 has been revised to reflect the correct classification of cash flows, resulting in a decrease in cash provided by operating activities and a corresponding increase in cash provided by investing activities of $35 million.

XML

Discontinued Operations

9 Months Ended

Sep. 30, 2013

Notes To Condensed Consolidated Financial Statements [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held For Sale

During the third quarter of 2013, we entered into an agreement to sell PBMS NA. The sale closed on October 1, 2013 and we received cash proceeds of $392 million. In addition, during the third quarter of 2013, we sold our Nordic furniture business. Total proceeds from this sale were not material.

During the second quarter of 2013, we entered into two separate agreements to sell PBMSi and completed the sale of IMS. We closed on the agreements to sell PBMSi on July 5, 2013 and August 31, 2013. Total proceeds from the sale of PBMSi and IMS were not material.

The following tables show selected financial information included in discontinued operations:

	Three Months Ended September 30, 2013
	PBMS			IMS			Nordic furniture business			Total
Revenue	$	194,511		$	4		$	12,014		$	206,529
Loss from operations before taxes	$	(14,438	)	$	(1,072	)	$	(4,381	)	$	(19,891	)
Gain on sale	13,269			1,196			4,465			18,930
(Loss) income before taxes	(1,169		)	124			84			(961		)
Tax provision (benefit)	81,084			168			(9		)	81,243
(Loss) income from discontinued operations	$	(82,253	)	$	(44	)	$	93		$	(82,204	)

	Three Months Ended September 30, 2012
	PBMS		IMS			Nordic furniture business		Total
Revenue	$	220,887	$	32,461		$	12,539	$	265,887
Income (loss) before taxes	$	14,491	$	(30,086	)	$	79	$	(15,516	)
Tax provision (benefit)	7,210		(11,335		)	22		(4,103		)
(Loss) income from discontinued operations	$	7,281	$	(18,751	)	$	57	$	(11,413	)

	Nine Months Ended September 30, 2013
	PBMS			IMS			Nordic furniture business			Total
Revenue	$	639,237		$	23,036		$	37,785		$	700,058
Loss from operations before taxes	$	(116,018	)	$	(3,050	)	$	(4,859	)	$	(123,927	)
Gain (loss) on sale	13,269			(2,717		)	4,465			15,017
Loss before taxes	(102,749		)	(5,767		)	(394		)	(108,910		)
Tax provision (benefit)	61,679			(1,076		)	(144		)	60,459
(Loss) income from discontinued operations	$	(164,428	)	$	(4,691	)	$	(250	)	$	(169,369	)

	Nine Months Ended September 30, 2012
	PBMS		IMS			Nordic furniture business		Capital Services (1)			Total
Revenue	$	679,080	$	100,443		$	38,081	$	—		$	817,604
Income (loss) before taxes	$	47,015	$	(34,051	)	$	1,370	$	—		$	14,334
Tax provision (benefit)	20,589		(12,563		)	383		(19,332		)	(10,923		)
(Loss) income from discontinued operations	$	26,426	$	(21,488	)	$	987	$	19,332		25,257

(1) Represents tax benefits arising from the resolution of tax examinations related to our Capital Services business, which was sold in 2006.

The pre-tax loss from operations for PBMS for the three and nine months ended September 30, 2013 includes an estimated loss on disposal of $20 million and $36 million, respectively. The pre-tax loss from operations for PBMS for the nine months ended September 30, 2013 also includes goodwill impairment charges of $100 million and asset impairment charges of $15 million. The inputs used to determine the fair value of the long-lived assets and goodwill were classified as Level 3 in the fair value hierarchy.

The assets and related liabilities held for sale at September 30, 2013 consist of the following:

Accounts receivables	$	145,955
Inventories	1,595
Other current assets and prepayments	11,948
Total current assets	159,498
Property, plant and equipment, net (1)	77,001
Goodwill	302,487
Intangible assets, net	7,193
Other assets	4,462
Assets held for sale	$	550,641
Accounts payable and accrued liabilities	$	77,639
Advance billings	9,862
Total current liabilities	87,501
Other non-current liabilities	30,676
Liabilities related to assets held for sale	$	118,177

(1) Also includes the carrying value of our corporate headquarters building and certain surrounding parcels of land. See Note 6.

XML

Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

During the third quarter of 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect the clients served and how we review, analyze, measure and manage our operations. There were no changes to the Small & Medium Business Solutions group, but certain business activities within our Enterprise Business Solutions group were consolidated under a new reporting segment, Digital Commerce Solutions. Historical segment results have been recast to conform to our current presentation and to exclude discontinued operations (see Note 4). The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in areas outside North America.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed sorting and production print equipment and production mail systems to large enterprise clients to process inbound and outbound mail.

Presort Services: Includes worldwide revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts.

Digital Commerce Solutions:

Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software; (ii) direct marketing services for targeted clients; (iii) our digital mail delivery service offering (Volly^TM); and (iv) our cross-border e-commerce solutions.

Segment earnings before interest and taxes (EBIT) is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and impairment charges, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management presents segment EBIT because it believes segment EBIT provides investors with an analysis of the company's operating performance and underlying trends of the businesses. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our condensed consolidated results of operations.

Revenue and EBIT by business segment was as follows:

	Revenues
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
North America Mailing	$	422,821	$	447,920	$	1,286,085	$	1,362,709
International Mailing	142,443		141,630		448,684		449,583
Small & Medium Business Solutions	565,264		589,550		1,734,769		1,812,292
Production Mail	116,477		114,889		360,352		337,582
Presort Services	105,093		105,909		322,954		322,401
Enterprise Business Solutions	221,570		220,798		683,306		659,983
Digital Commerce Solutions	151,952		139,441		420,139		427,273
Total revenue	$	938,786	$	949,789	$	2,838,214	$	2,899,548

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
North America Mailing	$	167,433		$	168,934		$	488,301		$	514,975
International Mailing	15,456			11,206			52,967			51,670
Small & Medium Business Solutions	182,889			180,140			541,268			566,645
Production Mail	10,620			10,125			34,239			28,439
Presort Services	20,398			19,167			65,132			82,728
Enterprise Business Solutions	31,018			29,292			99,371			111,167
Digital Commerce Solutions	10,196			2,971			20,134			23,674
Total EBIT	224,103			212,403			660,773			701,486
Reconciling items:
Interest, net (1)	(46,357		)	(45,088		)	(145,066		)	(142,853		)
Unallocated corporate and other expenses	(50,196		)	(44,185		)	(170,340		)	(151,154		)
Restructuring charges and asset impairments	(34,909		)	—			(53,940		)	980
Income from continuing operations before income taxes	$	92,641		$	123,130		$	291,427		$	408,459

(1) Includes financing interest expense, other interest expense and interest income.

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Fair Value Measurements and Derivative Instruments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Net	$ 1,000,000	$ 1,000,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	312,557,000
Liabilities:	0
Money market funds / commercial paper		581,648,000
Equity securities		0
Commingled fixed income securities		0
Debt securities - U.S. and foreign governments, agencies and municipalities		124,221,000
Debt securities - corporate		0
Mortgage-back / asset-back securities		0
Interest rate swaps		0
Foreign exchange contracts		0
Total assets		705,869,000
Foreign exchange contracts		0
Total liabilities		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	411,998,000
Liabilities:	(5,473,000)
Money market funds / commercial paper		34,369,000
Equity securities		25,106,000
Commingled fixed income securities		29,359,000
Debt securities - U.S. and foreign governments, agencies and municipalities		18,908,000
Debt securities - corporate		43,926,000
Mortgage-back / asset-back securities		162,375,000
Interest rate swaps		10,117,000
Foreign exchange contracts		2,582,000
Total assets		326,742,000
Foreign exchange contracts		(1,174,000)
Total liabilities		(1,174,000)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Liabilities:	0
Money market funds / commercial paper		0
Equity securities		0
Commingled fixed income securities		0
Debt securities - U.S. and foreign governments, agencies and municipalities		0
Debt securities - corporate		0
Mortgage-back / asset-back securities		0
Interest rate swaps		0
Foreign exchange contracts		0
Total assets		0
Foreign exchange contracts		0
Total liabilities		0
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	724,555,000
Liabilities:	(5,473,000)
Money market funds / commercial paper		616,017,000
Equity securities		25,106,000
Commingled fixed income securities		29,359,000
Debt securities - U.S. and foreign governments, agencies and municipalities		143,129,000
Debt securities - corporate		43,926,000
Mortgage-back / asset-back securities		162,375,000
Interest rate swaps		10,117,000
Foreign exchange contracts		2,582,000
Total assets		1,032,611,000
Foreign exchange contracts		(1,174,000)
Total liabilities		(1,174,000)
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	(3,650,590,000)	(4,017,375,000)
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	(3,867,130,000)	(4,200,970,000)
Money market funds / commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	194,486,000
Money market funds / commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	147,259,000
Money market funds / commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Money market funds / commercial paper | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	341,745,000
Equity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Equity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	25,384,000
Equity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Equity securities | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	25,384,000
Commingled fixed income securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Commingled fixed income securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	26,772,000
Commingled fixed income securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Commingled fixed income securities | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	26,772,000
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	118,071,000
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	18,049,000
Debt securities - U.S. and foreign governments, agencies and municipalities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Debt securities - U.S. and foreign governments, agencies and municipalities | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	136,120,000
Debt securities - corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Debt securities - corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	31,534,000
Debt securities - corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Debt securities - corporate | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	31,534,000
Mortgage-backed / asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Mortgage-backed / asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	159,300,000
Mortgage-backed / asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Mortgage-backed / asset-backed securities | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	159,300,000
Interest rate swaps | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Interest rate swaps | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	1,855,000
Interest rate swaps | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Interest rate swaps | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	1,855,000
Foreign exchange contracts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Liabilities:	0
Foreign exchange contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	1,845,000
Liabilities:	(5,473,000)
Foreign exchange contracts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0
Liabilities:	0
Foreign exchange contracts | Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	1,845,000
Liabilities:	$ (5,473,000)

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Restructuring Charges and Asset Impairments (Tables)

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

	Severance and benefits costs			Pension and Retiree Medical			Asset impairments			Other exit costs			Total
Balance at January 1, 2013	$	62,540		$	—		$	—		$	5,218		$	67,758
Expenses, net (1)	25,705			1,964			71			1,528			29,268
Cash payments	(38,125		)	—			—			(3,228		)	(41,353		)
Non-cash charges	—			(1,964		)	(71		)	—			(2,035		)
Balance at September 30, 2013	$	50,120		$	—		$	—		$	3,518		$	53,638

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2013	$	4	$	648		$	323,338	$	223,847		$	4,744,802		$	(681,213	)	$	(4,500,795	)	$	110,631
Net income	—		—			—		—			52,746			—			—			52,746
Other comprehensive income	—		—			—		—			—			(15,380		)	—			(15,380		)
Cash dividends
Common ($0.75 per share)	—		—			—		—			(150,920		)	—			—			(150,920		)
Preference	—		—			—		—			(35		)	—			—			(35		)
Issuances of common stock	—		—			—		(33,412		)	—			—			35,546			2,134
Conversions to common stock	—		(40		)	—		(853		)	—			—			893			—
Stock-based compensation expense	—		—			—		12,061			—			—			—			12,061
Balance at September 30, 2013	$	4	$	608		$	323,338	$	201,643		$	4,646,593		$	(696,593	)	$	(4,464,356	)	$	11,237

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2012	$	4	$	659		$	323,338	$	240,584		$	4,600,217		$	(661,645	)	$	(4,542,143	)	$	(38,986	)
Net income	—		—			—		—			334,826			—			—			334,826
Other comprehensive income	—		—			—		—			—			35,777			—			35,777
Cash dividends
Common ($1.125 per share)	—		—			—		—			(225,244		)	—			—			(225,244		)
Preference	—		—			—		—			(38		)	—			—			(38		)
Issuances of common stock	—		—			—		(31,306		)	—			—			36,138			4,832
Conversions to common stock	—		(6		)	—		(124		)	—			—			130			—
Stock-based compensation expense	—		—			—		13,466			—			—			—			13,466
Balance at September 30, 2012	$	4	$	653		$	323,338	$	222,620		$	4,709,761		$	(625,868	)	$	(4,505,875	)	$	124,633

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Segment reporting information profit (loss)
Revenues	$ 938,786	$ 949,789	$ 2,838,214	$ 2,899,548
EBIT	224,103	212,403	660,773	701,486
Reconciling items:
Interest, net	(46,357)	(45,088)	(145,066)	(142,853)
Unallocated corporate and other expenses	(50,196)	(44,185)	(170,340)	(151,154)
Restructuring charges and asset impariments	(34,909)	0	(53,940)	980
Goodwill, Impairment Loss			(101,415)	(18,315)
Other Income	0	0	(25,121)	(1,138)
Income from continuing operations before income taxes	92,641	123,130	291,427	408,459
Cash and cash equivalents	759,636	424,789	759,636	424,789	913,276	856,238
Short-term investments	20,471		20,471		36,611
Assets held for sale	550,641		550,641		0
Small & Medium Business Solutions
Segment reporting information profit (loss)
Revenues	565,264	589,550	1,734,769	1,812,292
EBIT	182,889	180,140	541,268	566,645
North America Mailing
Segment reporting information profit (loss)
Revenues	422,821	447,920	1,286,085	1,362,709
EBIT	167,433	168,934	488,301	514,975
International Mailing
Segment reporting information profit (loss)
Revenues	142,443	141,630	448,684	449,583
EBIT	15,456	11,206	52,967	51,670
Enterprise Business Solutions
Segment reporting information profit (loss)
Revenues	221,570	220,798	683,306	659,983
EBIT	31,018	29,292	99,371	111,167
Production Mail
Segment reporting information profit (loss)
Revenues	116,477	114,889	360,352	337,582
EBIT	10,620	10,125	34,239	28,439
Mail Services
Segment reporting information profit (loss)
Revenues	105,093	105,909	322,954	322,401
EBIT	20,398	19,167	65,132	82,728
Digital Commerce Solutions [Member]
Segment reporting information profit (loss)
Revenues	151,952	139,441	420,139	427,273
EBIT	$ 10,196	$ 2,971	$ 20,134	$ 23,674

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Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Amounts attributable to common stockholders:
Net income from continuing operations	$ 76,677	$ 87,946	$ 222,115	$ 309,569
Income (loss) from discontinued operations	(82,204)	(11,413)	(169,369)	25,257
Net (loss) income - Pitney Bowes Inc. (numerator for diluted EPS)	(5,527)	76,533	52,746	334,826
Less: Preference stock dividend	(12)	(12)	(35)	(38)
(Loss) income attributable to common stockholders (numerator for basic EPS)	$ (5,539)	$ 76,521	$ 52,711	$ 334,788
Denominator (in thousands):
Weighted average shares used in basic EPS	201,827	200,593	201,490	200,266
Effect of dilutive shares:
Preferred stock	2	2	2	2
Preference stock	376	399	386	399
Stock plans	935	608	712	458
Weighted-average shares used in diluted EPS	203,140	201,602	202,590	201,125
Basic earnings per share:
Continuing operations	$ 0.38	$ 0.44	$ 1.10	$ 1.55
Discontinued operations	$ (0.41)	$ (0.06)	$ (0.84)	$ 0.13
Net (loss) income	$ (0.03)	$ 0.38	$ 0.26	$ 1.67
Diluted earnings per share:
Continuing operations	$ 0.38	$ 0.44	$ 1.10	$ 1.54
Discontinued operations	$ (0.40)	$ (0.06)	$ (0.84)	$ 0.13
Net (loss) income	$ (0.03)	$ 0.38	$ 0.26	$ 1.66
Anti-dilutive shares (in thousands):
Anti-dilutive shares not used in calculating diluted weighted-average shares	12,503	13,607	12,886	14,391

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Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Noncontrolling Interest [Line Items]
Preferred Stock, Value, Issued	$ 4	$ 4	$ 4
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	25.00%	25.00%
Noncontrolling Interest, Ownership Percentage by Parent	75.00%	75.00%
Preferred Stock, Dividend Rate, Percentage	4.00%		4.00%
Preferred Stock, Cumulative Dividend Increase Interval if Outstanding Once Callable		6 months
Redeemable Preferred Stock Member
Noncontrolling Interest [Line Items]
Shares, Outstanding	300,000	300,000
Preferred Stock, Value, Issued	$ 300,000	$ 300,000
Preferred Stock, Dividend Rate, Percentage	6.125%
Preferred stock-perpetual voting, dividend increase percentage each interval once shares become callable	50.00%

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Raw materials and work in process	$ 46,663	$ 66,221
Supplies and service parts	55,453	72,551
Finished products	58,337	68,335
Inventory at FIFO cost	160,453	207,107
Excess of FIFO cost over LIFO cost	(26,187)	(27,429)
Total inventory, net	$ 134,266	$ 179,678

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net (loss) income - Pitney Bowes Inc.	$ (5,527)	$ 76,533	$ 52,746	$ 334,826
Other comprehensive income, net of tax:
Net unrealized gain on cash flow hedges, net of tax	62	25	962	578
Net unrealized (loss) gain on investment securities, net of tax	(222)	589	(4,667)	967
Amortization of pension and postretirement costs, net of tax	7,950	12,151	28,943	35,115
Foreign currency translations	19,140	19,025	(40,618)	(883)
Other comprehensive (loss) income	26,930	31,790	(15,380)	35,777
Total comprehensive (loss) income - Pitney Bowes Inc.	$ 21,403	$ 108,323	$ 37,366	$ 370,603
Document Fiscal Year Focus			2013

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Inventories

9 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consisted of the following:

	September 30, 2013			December 31, 2012
Raw materials and work in process	$	46,663		$	66,221
Supplies and service parts	55,453			72,551
Finished products	58,337			68,335
Inventory at FIFO cost	160,453			207,107
Excess of FIFO cost over LIFO cost	(26,187		)	(27,429		)
Total inventory, net	$	134,266		$	179,678

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 759,636	$ 913,276
Short-term investments	20,471	36,611
Accounts receivables, net	418,035	728,250
Finance receivable, net	1,120,068	1,188,292
Inventories	134,266	179,678
Current income taxes	28,419	51,836
Other current assets and prepayments	173,068	114,184
Assets held for sale	550,641	0
Total current assets	3,204,604	3,212,127
Property, plant and equipment, net	240,609	385,377
Rental property and equipment, net	230,098	241,192
Finance receivables, net	947,028	1,026,489
Investment in leveraged leases	34,858	34,546
Goodwill	1,729,178	2,136,138
Intangible assets, net	128,588	166,214
Non-current income taxes	96,714	94,434
Other assets	538,255	563,374
Total assets	7,149,932	7,859,891
Current liabilities:
Accounts payable and accrued liabilities	1,501,189	1,809,226
Current income taxes	291,930	240,681
Notes payable and current portion of long-term obligations	299,570	375,000
Advance billings	418,231	452,130
Liabilities related to assets held for sale	118,177	0
Total current liabilities	2,629,097	2,877,037
Deferred taxes on income	19,192	69,222
Tax uncertainties and other income tax liabilities	157,102	145,881
Long-term debt	3,351,020	3,642,375
Other non-current liabilities	685,914	718,375
Total liabilities	6,842,325	7,452,890
Noncontrolling interests (Preferred stockholders' equity in subsidiaries)	296,370	296,370
Stockholders' equity:
Cumulative preferred stock, $50 par value, 4% convertible	4	4
Cumulative preference stock, no par value, $2.12 convertible	608	648
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued)	323,338	323,338
Additional paid-in capital	201,643	223,847
Retained earnings	4,646,593	4,744,802
Accumulated other comprehensive loss	(696,593)	(681,213)
Treasury stock, at cost (121,462,568 and 122,453,865 shares, respectively)	(4,464,356)	(4,500,795)
Total Pitney Bowes Inc. stockholders' equity	11,237	110,631
Total liabilities, noncontrolling interests and stockholders' equity	$ 7,149,932	$ 7,859,891

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Condensed Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Document Fiscal Year Focus			2013
Revenue:
Equipment sales	$ 201,830	$ 199,609	$ 634,779	$ 618,620
Supplies	69,696	66,878	216,254	213,665
Software	98,164	93,476	285,658	302,377
Rentals	128,225	137,149	391,590	414,922
Financing	113,955	123,999	346,646	373,695
Support services	166,785	176,769	505,226	529,615
Business services	160,131	151,909	458,061	446,654
Total revenue	938,786	949,789	2,838,214	2,899,548
Costs and expenses:
Cost of equipment sales	92,307	95,008	307,992	278,457
Cost of supplies	21,840	20,689	67,794	65,423
Cost of software	29,698	29,227	80,093	85,023
Cost of rentals	25,612	25,182	79,791	87,258
Financing interest expense	20,306	19,604	59,979	61,385
Cost of support services	103,004	107,074	315,275	334,274
Cost of business services	112,447	103,230	322,970	298,689
Selling, general and administrative	355,202	370,935	1,067,394	1,111,144
Research and development	24,769	30,226	81,351	87,810
Restructuring charges and asset impairments	34,909	0	53,940	(980)
Other interest expense	27,508	27,541	89,594	87,261
Interest income	(1,457)	(2,057)	(4,507)	(5,793)
Other income, net	0	0	25,121	1,138
Total costs and expenses	846,145	826,659	2,546,787	2,491,089
Income from continuing operations before income taxes	92,641	123,130	291,427	408,459
Provision for income taxes	11,370	30,590	55,530	85,108
Income from continuing operations	81,271	92,540	235,897	323,351
Net (loss) income before attribution of noncontrolling interests	(933)	81,127	66,528	348,608
Less: Preferred stock dividends of subsidiaries attributable to noncontrolling interests	4,594	4,594	13,782	13,782
Net (loss) income - Pitney Bowes Inc.	(5,527)	76,533	52,746	334,826
Amounts attributable to common stockholders:
Net income from continuing operations	76,677	87,946	222,115	309,569
(Loss) income from discontinued operations, net of tax	(82,204)	(11,413)	(169,369)	25,257
Net (loss) income - Pitney Bowes Inc.	$ (5,527)	$ 76,533	$ 52,746	$ 334,826
Basic earnings per share attributable to common stockholders:
Continuing operations	$ 0.38	$ 0.44	$ 1.10	$ 1.55
Discontinued operations	$ (0.41)	$ (0.06)	$ (0.84)	$ 0.13
Net (loss) income - Pitney Bowes Inc.	$ (0.03)	$ 0.38	$ 0.26	$ 1.67
Diluted earnings per share attributable to common stockholders:
Continuing operations	$ 0.38	$ 0.44	$ 1.10	$ 1.54
Discontinued operations	$ (0.40)	$ (0.06)	$ (0.84)	$ 0.13
Net (loss) income - Pitney Bowes Inc.	$ (0.03)	$ 0.38	$ 0.26	$ 1.66
Dividends declared per share of common stock	$ 0.1875	$ 0.375	$ 0.75	$ 1.125

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Stockholders' Equity (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended						9 Months Ended						9 Months Ended								9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Preferred stock	Dec. 31, 2012 Preferred stock	Sep. 30, 2012 Preferred stock	Dec. 31, 2011 Preferred stock	Sep. 30, 2013 Preference stock	Sep. 30, 2012 Preference stock	Sep. 30, 2013 Common stock	Dec. 31, 2012 Common stock	Sep. 30, 2012 Common stock	Dec. 31, 2011 Common stock	Sep. 30, 2013 Additional paid-in capital	Sep. 30, 2012 Additional paid-in capital	Sep. 30, 2013 Retained earnings	Sep. 30, 2012 Retained earnings	Sep. 30, 2013 Accumulated other comprehensive income loss	Dec. 31, 2012 Accumulated other comprehensive income loss	Sep. 30, 2012 Accumulated other comprehensive income loss	Dec. 31, 2011 Accumulated other comprehensive income loss	Sep. 30, 2013 Treasury stock	Sep. 30, 2012 Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period			$ 110,631	$ (38,986)	$ 4	$ 4	$ 4	$ 4	$ 648	$ 659	$ 323,338	$ 323,338	$ 323,338	$ 323,338	$ 223,847	$ 240,584	$ 4,744,802	$ 4,600,217	$ (696,593)	$ (681,213)	$ (625,868)	$ (661,645)	$ (4,500,795)	$ (4,542,143)
Net income - Pitney Bowes Inc.	(5,527)	76,533	52,746	334,826													52,746	334,826
Other comprehensive income	26,930	31,790	(15,380)	35,777
Cash dividends
Common			(150,920)	(225,244)													(150,920)	(225,244)
Common Stock, Dividends, Per Share, Cash Paid			$ 0.75	$ 1.125
Preferrence	(12)	(12)	(35)	(38)													(35)	(38)
Issuances of common stock			2,134	4,832											(33,412)	(31,306)							35,546	36,138
Conversions to common stock			0	0					(40)	(6)					(853)	(124)							893	130
Stock-based compensation expnse			12,061	13,466											12,061	13,466
Balances, end of period	11,237	124,633	11,237	124,633	4	4	4	4	608	653	323,338	323,338	323,338	323,338	201,643	222,620	4,646,593	4,709,761	(696,593)	(681,213)	(625,868)	(661,645)	(4,464,356)	(4,505,875)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	19,140	19,025	(40,618)	(883)
Net unrealized gain (loss) on investment securities	(222)	589	(4,667)	967
Amounts reclassified from accumulated other comprehensive income	7,950	12,151	28,943	35,115
Other comprehensive income	$ 26,930	$ 31,790	$ (15,380)	$ 35,777

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Inventories (Tables)

9 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Inventory Components

Inventories consisted of the following:

	September 30, 2013			December 31, 2012
Raw materials and work in process	$	46,663		$	66,221
Supplies and service parts	55,453			72,551
Finished products	58,337			68,335
Inventory at FIFO cost	160,453			207,107
Excess of FIFO cost over LIFO cost	(26,187		)	(27,429		)
Total inventory, net	$	134,266		$	179,678

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Earnings per Share

9 Months Ended

Sep. 30, 2013

Notes To Condensed Consolidated Financial Statements [Abstract]

Earnings per Share

Earnings per Share

The calculations of basic and diluted earnings per share are presented below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Amounts attributable to common stockholders:
Net income from continuing operations	$	76,677		$	87,946		$	222,115		$	309,569
Income (loss) from discontinued operations	(82,204		)	(11,413		)	(169,369		)	25,257
Net income - Pitney Bowes Inc. (numerator for diluted EPS)	(5,527		)	76,533			52,746			334,826
Less: Preference stock dividend	(12		)	(12		)	(35		)	(38		)
Income attributable to common stockholders (numerator for basic EPS)	$	(5,539	)	$	76,521		$	52,711		$	334,788
Denominator (in thousands):
Weighted-average shares used in basic EPS	201,827			200,593			201,490			200,266
Effect of dilutive shares:
Preferred stock	2			2			2			2
Preference stock	376			399			386			399
Stock plans	935			608			712			458
Weighted-average shares used in diluted EPS	203,140			201,602			202,590			201,125
Basic earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.55
Discontinued operations	(0.41		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.67
Diluted earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.54
Discontinued operations	(0.40		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.66
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands):	12,503			13,607			12,886			14,391

(1) The sum of earnings per share amounts may not equal the totals due to rounding.

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Restructuring Charges and Asset Impairments (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Restructuring and Related Cost [Line Items]
Asset Impairment Charges	$ 26,000,000
Restructuring Costs [Abstract]
Balance Beginning		67,758,000
Expenses, net		29,268,000
Cash payments		(41,353,000)
Non-cash charges		(2,035,000)
Balance Ending	53,638,000	53,638,000
Restructuring Charges		28,000,000
Restructuring Reserve, Accrual Adjustment	6,000,000
Severance and benefits costs
Restructuring Costs [Abstract]
Balance Beginning		62,540,000
Expenses, net		25,705,000
Cash payments		(38,125,000)
Non-cash charges		0
Balance Ending	50,120,000	50,120,000
Pension and Retiree Medical
Restructuring Costs [Abstract]
Balance Beginning		0
Expenses, net		1,964,000
Cash payments		0
Non-cash charges		(1,964,000)
Balance Ending	0	0
Assets Impairments [Member]
Restructuring Costs [Abstract]
Balance Beginning		0
Expenses, net		71,000
Cash payments		0
Non-cash charges		(71,000)
Balance Ending	0	0
Other exit costs
Restructuring Costs [Abstract]
Balance Beginning		5,218,000
Expenses, net		1,528,000
Cash payments		(3,228,000)
Non-cash charges		0
Balance Ending	3,518,000	3,518,000
Maximum
Restructuring Costs [Abstract]
Restructuring and Related Cost, Expected Cost	125,000,000
Minimum
Restructuring Costs [Abstract]
Restructuring and Related Cost, Expected Cost	$ 75,000,000

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Pensions and Other Benefit Programs (Details) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Amortization of transition credit	$ (2,000)	[1],[2]	$ (2,000)	[1],[2]	$ (6,000)	[1],[2]	$ (6,000)	[1],[2]
Amortization of prior service cost	163,000	[1],[2]	(295,000)	[1],[2]	524,000	[1],[2]	(884,000)	[1],[2]
Amortization of net actuarial loss	12,136,000	[1],[2]	18,852,000	[1],[2]	44,038,000	[1],[2]	56,376,000	[1],[2]
Defined Benefit Plan Special Contributions					0		(95,000,000)
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer					10,000,000
Pension Plans, Defined Benefit | United States
Defined Benefit Plan Disclosure [Line Items]
Service cost	3,597,000		4,735,000		10,890,000		14,204,000
Interest cost	18,264,000		20,260,000		55,169,000		60,780,000
Expected return on plan assets	(26,781,000)		(30,406,000)		(80,908,000)		(91,218,000)
Amortization of transition credit	0		0		0		0
Amortization of prior service cost	95,000		200,000		318,000		602,000
Amortization of net actuarial loss	7,690,000		13,240,000		26,234,000		39,719,000
Settlement	145,000		0		1,561,000		0
Special termination benefits	0		0		(548,000)		0
Curtailment					814,000		0
Net periodic benefit cost	3,010,000		8,029,000		14,626,000		24,087,000
Defined Benefit Plan Contributions By Employer					9,000,000
Pension Plans, Defined Benefit | Foreign
Defined Benefit Plan Disclosure [Line Items]
Service cost	968,000		1,774,000		5,280,000		5,805,000
Interest cost	1,870,000		6,909,000		25,246,000		20,766,000
Expected return on plan assets	(3,266,000)		(8,069,000)		(31,187,000)		(24,133,000)
Amortization of transition credit	(2,000)		(2,000)		(6,000)		(6,000)
Amortization of prior service cost	28,000		28,000		84,000		83,000
Amortization of net actuarial loss	2,873,000		3,558,000		11,511,000		10,546,000
Settlement	0		192,000		0		442,000
Special termination benefits	(104,000)		0		(104,000)		0
Curtailment					0		0
Net periodic benefit cost	2,575,000		4,390,000		11,032,000		13,503,000
Other Postretirement Benefit Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost	935,000		801,000		2,966,000		2,560,000
Interest cost	2,186,000		2,896,000		7,210,000		8,685,000
Amortization of prior service cost	40,000		(523,000)		122,000		(1,569,000)
Amortization of net actuarial loss	1,573,000		2,054,000		6,293,000		6,111,000
Net periodic benefit cost	4,734,000		5,228,000		16,591,000		15,787,000
Defined Benefit Plan Contributions By Employer	$ 5,000,000		$ 7,000,000		$ 21,000,000

[1] These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

[2] Amounts in parentheses indicate debits (reductions) to income.

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Finance Assets Finance Assets 2 (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Leveraged Leases [Line Items]
Rental receivables	$ 68,918		$ 83,254
Unguaranteed residual values	13,644		14,177
Principal and interest on non-recourse loans	(41,836)		(55,092)
Unearned income	(5,868)		(7,793)
Investment in leveraged leases	34,858		34,546
Less: Deferred taxes related to leveraged leases	(16,319)		(19,372)
Net investment in leveraged leases	18,539		15,174
Gain on sale of leveraged lease assets, net of tax	$ 0	$ 12,886

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share (Tables) [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Amounts attributable to common stockholders:
Net income from continuing operations	$	76,677		$	87,946		$	222,115		$	309,569
Income (loss) from discontinued operations	(82,204		)	(11,413		)	(169,369		)	25,257
Net income - Pitney Bowes Inc. (numerator for diluted EPS)	(5,527		)	76,533			52,746			334,826
Less: Preference stock dividend	(12		)	(12		)	(35		)	(38		)
Income attributable to common stockholders (numerator for basic EPS)	$	(5,539	)	$	76,521		$	52,711		$	334,788
Denominator (in thousands):
Weighted-average shares used in basic EPS	201,827			200,593			201,490			200,266
Effect of dilutive shares:
Preferred stock	2			2			2			2
Preference stock	376			399			386			399
Stock plans	935			608			712			458
Weighted-average shares used in diluted EPS	203,140			201,602			202,590			201,125
Basic earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.55
Discontinued operations	(0.41		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.67
Diluted earnings per share (1):
Continuing operations	$	0.38		$	0.44		$	1.10		$	1.54
Discontinued operations	(0.40		)	(0.06		)	(0.84		)	0.13
Net income	$	(0.03	)	$	0.38		$	0.26		$	1.66
Anti-dilutive shares not used in calculating diluted weighted-average shares (in thousands):	12,503			13,607			12,886			14,391

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Description of Business and Basis of Presentation Description of Business and Basis of Presentation (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior Period Reclassification Adjustment - Revenue	$ (5)	$ (13)
Prior Period Reclassification Adjustment - Expense	6	17
Prior Period Reclassification Adjustment		$ 35

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Restructuring Charges and Asset Impairments

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments

Restructuring Charges and Asset Impairments

Restructuring Charges

During the second quarter of 2013, we announced that we would implement initiatives and take actions designed to enhance our responsiveness to changing market conditions, further streamline our business operations, reduce our cost structure and create long-term flexibility to invest in growth and provide both process and operational improvements. We expect that these actions will result in restructuring charges in the range of $75 to $125 million, which will be recognized as specific initiatives are approved and implemented.

Net restructuring charges included in restructuring charges and asset impairments for the nine months ended September 30, 2013 were $28 million. This amount was net of reserve reversals of $6 million under prior restructuring programs. We perform a review of our remaining obligations under prior restructuring programs at the end of each period and adjust our reserves accordingly.

Activity in our restructuring reserves for the nine months ended September 30, 2013 was as follows:

	Severance and benefits costs			Pension and Retiree Medical			Asset impairments			Other exit costs			Total
Balance at January 1, 2013	$	62,540		$	—		$	—		$	5,218		$	67,758
Expenses, net (1)	25,705			1,964			71			1,528			29,268
Cash payments	(38,125		)	—			—			(3,228		)	(41,353		)
Non-cash charges	—			(1,964		)	(71		)	—			(2,035		)
Balance at September 30, 2013	$	50,120		$	—		$	—		$	3,518		$	53,638

(1)    Includes restructuring charges for both continuing and discontinued operations.

The majority of the remaining restructuring payments are expected to be paid through 2014; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 2014. We expect that cash flows from operations will be sufficient to fund these payments. The carrying value of our restructuring liability approximates fair value due to the short-term nature of the obligations.

Asset Impairments

During the third quarter of 2013, we entered into an agreement to sell our corporate headquarters building and certain surrounding parcels of land. The fair value of the building and land was determined based on the estimated selling price less the costs to sell, and a non-cash impairment charge of $26 million was recognized to write-down the carrying value of the building and land to their fair value. The inputs used to determine the fair value were classified as Level 3. The impairment charge was included as restructuring charges and asset impairments in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2013. We expect to close on the sale by the end of the second quarter of 2014.

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Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure

Intangible assets consisted of the following:

	September 30, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	353,241	$	(244,275	)	$	108,966	$	407,901	$	(269,100	)	$	138,801
Supplier relationships	29,000		(24,288		)	4,712		29,000		(22,113		)	6,887
Software & technology	166,397		(153,153		)	13,244		169,632		(151,628		)	18,004
Trademarks & trade names	35,177		(33,549		)	1,628		35,078		(32,615		)	2,463
Non-compete agreements	7,349		(7,311		)	38		7,471		(7,412		)	59
Total intangible assets	$	591,164	$	(462,576	)	$	128,588	$	649,082	$	(482,868	)	$	166,214

Amortization Expense In Future Periods

The future amortization expense for intangible assets as of September 30, 2013 was as follows:

Remaining for year ended December 31, 2013	$	8,848
Year ended December 31, 2014	34,246
Year ended December 31, 2015	30,288
Year ended December 31, 2016	22,935
Year ended December 31, 2017	11,352
Thereafter	20,919
Total	$	128,588

Schedule of Goodwill

he changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows:

	Gross value before accumulated impairment		Accumulated impairment			December 31, 2012		Impairment (2)			Other (1)			September 30, 2013
North America Mailing	$	355,874	$	—		$	355,874	$	—		$	2,439		$	358,313
International Mailing	183,908		—			183,908		(1,162		)	(1,633		)	181,113
Small & Medium Business Solutions	539,782		—			539,782		(1,162		)	806			539,426
Production Mail	131,865		—			131,865		—			(15,050		)	116,815
Management Services (2)	488,399		(84,500		)	403,899		(100,253		)	(1,159		)	302,487
Presort Services	259,106		(63,965		)	195,141		—			—			195,141
Enterprise Business Solutions	879,370		(148,465		)	730,905		(100,253		)	(16,209		)	614,443
Digital Commerce Solutions	865,451		—			865,451		—			12,345			877,796
Total	$	2,284,603	$	(148,465	)	$	2,136,138	$	(101,415	)	$	(3,058	)	$	2,031,665
Reclassified to Assets held for sale (2)														(302,487		)
Balance at September 30, 2013														$	1,729,178

(1) Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments

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Fair Value Measurements and Derivative Instruments 2 (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Derivative [Line Items]
Other current assets and prepayments: Foreign exchange contracts	$ 398,000		$ 398,000		$ 78,000
Other assets: Interest rate swaps	1,855,000		1,855,000		10,117,000
Accounts payable and accrued liabilities: Foreign exchange contracts	(584,000)		(584,000)		(320,000)
Other current assets and prepayments: Foreign exchange contracts	1,447,000		1,447,000		2,504,000
Accounts payable and accrued liabilities: Foreign exchange contracts	(4,889,000)		(4,889,000)		(854,000)
Total derivative assets	3,700,000		3,700,000		12,699,000
Total derivative liabilities	(5,473,000)		(5,473,000)		(1,174,000)
Total net derivative assets	(1,773,000)		(1,773,000)		11,525,000
Derivative Gain Recognized in Earnings	863,000	1,578,000	3,631,000	8,351,000
Hedged Item Expense Recognized in Earnings	(2,742,000)	(5,484,000)	(10,969,000)	(25,652,000)
Total notional amount of outstanding contracts in cash flow hedging relationships	29,000,000		29,000,000		25,000,000
Derivative Gain (Loss) Recognized in AOCI (Effective Portion) - Foreign exchange contracts	(343,000)	(863,000)	457,000	(1,672,000)
Derivative gain (loss) reclassified from AOCI to income for hedges recorded to revenue (effective portion)	(169,000)	456,000	(922,000)	1,230,000
Derivative gain (loss) reclassified from AOCI to income for hedges recorded to cost of sales (effective portion)	108,000	(56,000)	520,000	(129,000)
Derivative gain (loss) reclassified from AOCI to income for hedges (effective portion)	(61,000)	400,000	(402,000)	1,101,000
Derivative gain (loss) recognized in income	(6,798,000)	939,000	(12,793,000)	(2,129,000)
Amount of collateral that would be required to be posted if our long-term senior unsecured debt ratings was to have fallen below BB-/Ba3	4,000,000		4,000,000
Foreign Exchange Contract Intercompany
Derivative [Line Items]
Foreign Currency Derivative Liabilities at Fair Value	$ 3,000,000		$ 3,000,000		$ 2,000,000

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Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt

Debt

Debt consisted of the following:

		September 30, 2013		December 31, 2012
Term loans		$	230,000	$	230,000
3.875%	notes due 2013	—		375,000
4.875%	notes due 2014 (1), (2)	299,570		450,000
5.0%	notes due 2015 (1)	274,879		400,000
4.75%	notes due 2016 (1)	370,914		500,000
5.75%	notes due 2017	500,000		500,000
5.60%	notes due 2018	250,000		250,000
4.75%	notes due 2018	350,000		350,000
6.25%	notes due 2019	300,000		300,000
5.25%	notes due 2022	110,000		110,000
5.25%	notes due 2037	500,000		500,000
6.70%	notes due 2043 (3)	425,000		—
Other (4)		40,227		52,375
Total debt		3,650,590		4,017,375
Current portion		299,570		375,000
Long-term debt		$	3,351,020	$	3,642,375

(1) During the first quarter, we completed a cash tender offer (the Tender Offer) for a portion of our 4.875% Notes due 2014, our 5.0% Notes due 2015, and our 4.75% Notes due 2016 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered, all accrued and unpaid interest and a premium amount. An aggregate $405 million of the Subject Notes were tendered. We recognized a net loss of $25 million, consisting of the payment of the call premium and transaction fees and the write-off of unamortized costs, partially offset by a gain from the unwinding of interest rate swap agreements as other expense, net on the Condensed Consolidated Statements of Income.

(2) Prior to the Tender Offer, we had interest rate swap agreements with an aggregate notional value of $450 million that effectively converted the fixed rate interest payments on these notes into variable interest rates. As a result of the Tender Offer, we unwound $225 million of these swap agreements.

(3) During the first quarter, we issued $425 million of 6.7% fixed rate 30-year notes. Interest is payable quarterly. The notes mature in 2043, but may be redeemed, at our option, in whole or in part, at any time on or after March 7, 2018 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. We used the net proceeds from the notes to fund the Tender Offer.

(4) Other consists of the unamortized proceeds received from unwinding of interest rate swaps, unamortized net debt discounts and the fair value adjustment of interest rate swaps.

At September 30, 2013, there were no outstanding commercial paper borrowings. During the quarter, commercial paper borrowings averaged $33 million at a weighted-average interest rate of 0.42% and the maximum amount outstanding at any time was $100 million.

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Fair Value Measurements and Derivative Instruments

9 Months Ended

Sep. 30, 2013

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.

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 at September 30, 2013 and December 31, 2012. 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 their placement within the fair value hierarchy.

	September 30, 2013
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	194,486	$	147,259		$	—	$	341,745
Equity securities	—		25,384			—		25,384
Commingled fixed income securities	—		26,772			—		26,772
Debt securities - U.S. and foreign governments, agencies and municipalities	118,071		18,049			—		136,120
Debt securities - corporate	—		31,534			—		31,534
Mortgage-backed / asset-backed securities	—		159,300			—		159,300
Derivatives
Interest rate swaps	—		1,855			—		1,855
Foreign exchange contracts	—		1,845			—		1,845
Total assets	$	312,557	$	411,998		$	—	$	724,555
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(5,473	)	$	—	$	(5,473	)
Total liabilities	$	—	$	(5,473	)	$	—	$	(5,473	)

	December 31, 2012
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	581,648	$	34,369		$	—	$	616,017
Equity securities	—		25,106			—		25,106
Commingled fixed income securities	—		29,359			—		29,359
Debt securities - U.S. and foreign governments, agencies and municipalities	124,221		18,908			—		143,129
Debt securities - corporate	—		43,926			—		43,926
Mortgage-backed / asset-backed securities	—		162,375			—		162,375
Derivatives
Interest rate swaps	—		10,117			—		10,117
Foreign exchange contracts	—		2,582			—		2,582
Total assets	$	705,869	$	326,742		$	—	$	1,032,611
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(1,174	)	$	—	$	(1,174	)
Total liabilities	$	—	$	(1,174	)	$	—	$	(1,174	)

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 / Commercial Paper: 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. Direct investments in commercial paper are not listed on an exchange in an active market and are classified as Level 2.

• Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign common stock. These mutual funds are classified as Level 2 as they are not separately listed on an exchange.

• Commingled Fixed Income Securities: 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. The value of the funds is based on the market 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 commingled funds are not listed on an exchange in an active market and are classified as Level 2.

• Debt Securities – U.S. and Foreign Governments, Agencies and Municipalities: 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 valued using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities are classified as Level 2.

• Debt Securities – Corporate: Corporate debt securities are valued using recently executed transactions, market price quotations where observable, or bond spreads. The spread data used are for the same maturity as the security. These securities are classified as Level 2.

• Mortgage-Backed Securities (MBS) / Asset-Backed Securities (ABS): These securities are valued based on external pricing indices. When external index pricing is not observable, MBS and ABS are valued based on external price/spread data. These securities are classified as Level 2.

Investment securities include investments held by The Pitney Bowes Bank (the Bank), an indirect wholly owned subsidiary whose primary business is to provide financing solutions to clients that rent or lease postage meters. The Bank's key product offering, Purchase Power, is a revolving credit solution, which enables clients to finance their postage costs when they refill their meter. The Bank also provides a deposit solution to those clients that prefer to prepay postage and earn interest on their deposits. When a client refills their postage meter, the funds are withdrawn from the savings account to pay for the postage. The Bank's assets and liabilities consist primarily of cash, finance receivables, short and long-term investments and deposit accounts.

The Bank's investment securities are classified as available-for-sale and recorded at fair value on the Condensed Consolidated Balance Sheets as cash and cash equivalents, short-term investments and other assets depending on the type of investment and maturity. Unrealized holding gains and losses are recorded, net of tax, in accumulated other comprehensive income (AOCI).

Available-for-sale securities at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	36,134	$	—	$	(13	)	$	36,121
Debt securities - U.S. and foreign governments, agencies and municipalities	116,146		1,405		(2,441		)	115,110
Debt securities - corporate	31,084		915		(465		)	31,534
Mortgage-backed / asset-backed securities	159,203		1,855		(1,758		)	159,300
Total	$	342,567	$	4,175	$	(4,677	)	$	342,065

	December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Money market funds / commercial paper	$	44,611	$	53	$	—		$	44,664
Debt securities - U.S. and foreign governments, agencies and municipalities	127,807		3,972		(56		)	131,723
Debt securities - corporate	41,095		2,851		(20		)	43,926
Mortgage-backed / asset-backed securities	162,180		3,340		(3,145		)	162,375
Total	$	375,693	$	10,216	$	(3,221	)	$	382,688

Scheduled maturities of investment securities at September 30, 2013 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	55,811	$	55,853
After 1 year through 5 years	61,774		62,635
After 5 years through 10 years	62,694		62,301
After 10 years	162,288		161,276
Total	$	342,567	$	342,065

We have not experienced any significant write-offs in our investment portfolio. The majority of our MBS 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. Further, we have no investments in auction rate securities.

Derivative Instruments

In the normal course of business, we are exposed to the impact of interest rate changes and foreign currency fluctuations. We limit these risks by following established risk management policies and procedures, including the use of derivatives. We use derivatives to manage the related cost of debt and to limit the effects of foreign exchange rate fluctuations on financial results. We do not use derivatives for trading or speculative purposes. We record our derivative instruments at fair value, and the accounting for changes in the fair value of the derivatives 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.

As required by the fair value measurements guidance, we have incorporated counterparty credit risk and our credit risk into the fair value measurement of our derivative assets and liabilities, respectively. We derive credit risk from observable data related to credit default swaps. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties.

The valuation of our interest rate swaps is based on the income approach using a model with inputs that are observable or that can be derived from or corroborated by observable market data. The valuation of our foreign exchange derivatives is based on the market approach using observable market inputs, such as forward rates.

The fair value of our derivative instruments at September 30, 2013 and December 31, 2012 was as follows:

Designation of Derivatives	Balance Sheet Location	September 30, 2013			December 31, 2012
Derivatives designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	$	398		$	78
	Other assets:
	Interest rate swaps	1,855			10,117
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(584		)	(320		)
Derivatives not designated as hedging instruments	Other current assets and prepayments:
	Foreign exchange contracts	1,447			2,504
	Accounts payable and accrued liabilities:
	Foreign exchange contracts	(4,889		)	(854		)
	Total derivative assets	$	3,700		$	12,699
	Total derivative liabilities	(5,473		)	(1,174		)
	Total net derivative (liabilities) assets	$	(1,773	)	$	11,525

Interest Rate Swaps

Derivatives designated as fair value hedges include interest rate swaps related to fixed rate debt. Changes in the fair value of both the derivative and item being hedged are recognized in earnings. The following represents the results of fair value hedging relationships for the three and nine months ended September 30,2013 and 2012:

		Three Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	863	$	1,578	$	(2,742	)	$	(5,484	)
		Nine Months Ended September 30,
		Derivative Gain Recognized in Earnings				Hedged Item Expense Recognized in Earnings
Derivative Instrument	Location of Gain (Loss)	2013		2012		2013			2012
Interest rate swaps	Interest expense	$	3,631	$	8,351	$	(10,969	)	$	(25,652	)

Foreign Exchange Contracts

We enter into foreign currency 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. At September 30, 2013 and December 31, 2012, we had outstanding contracts associated with these anticipated transactions with a notional amount of $29 million and $25 million, respectively. The value of these contracts at September 30, 2013 and December 31, 2012 was less than $1 million.

The amounts included in AOCI at September 30, 2013 will be recognized in earnings within the next 12 months. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges.

The following represents the results of cash flow hedging relationships for the three and nine months ended September 30,2013 and 2012:

	Three Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	(343	)	$	(863	)	Revenue	$	(169	)	$	456
							Cost of sales	108			(56		)
								$	(61	)	$	400
	Nine Months Ended September 30,
	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	2013			2012				2013			2012
Foreign exchange contracts	$	457		$	(1,672	)	Revenue	$	(922	)	$	1,230
							Cost of sales	520			(129		)
								$	(402	)	$	1,101

We also 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 the intercompany loans and interest and the mark-to-market adjustment on the derivatives are both recorded in earnings. Outstanding foreign exchange contracts to buy or sell various currencies had a net liability value of $3 million at September 30, 2013 and a net asset value of $2 million at December 31, 2012. All outstanding contracts at September 30, 2013 mature by the end of the year.

The following represents the results of our non-designated derivative instruments for the three and nine months ended September 30,2013 and 2012:

		Three Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(6,798	)	$	939
		Nine Months Ended September 30,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2013			2012
Foreign exchange contracts	Selling, general and administrative expense	$	(12,793	)	$	(2,129	)

Credit-Risk-Related Contingent Features

Certain derivative instruments contain credit-risk-related contingent features that would require us to post collateral based on a combination of our long-term senior unsecured debt ratings and the net fair value of our derivatives. At September 30, 2013, we were not required to post any collateral. The maximum amount of collateral that we would have been required to post at September 30, 2013, had the credit-risk-related contingent features been triggered, was $4 million.

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 because of the short maturity of these instruments.

The fair value of our debt is estimated based on recently executed transactions and market price quotations. These inputs are classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at September 30, 2013 and December 31, 2012 was as follows:

	September 30, 2013		December 31, 2012
Carrying value	$	3,650,590	$	4,017,375
Fair value	$	3,867,130	$	4,200,970

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]
Document Fiscal Year Focus	2013
Debt Instrument, Unamortized Discount	$ 13,387
Cash flows from operating activities:
Net income before attribution of noncontrolling interests	66,528	348,608
Restructuring payments	(41,353)	(60,746)
Special pension plan contributions	0	(95,000)
Tax payments related to sale of leveraged lease assets	0	99,249
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill impairment	101,415	18,315
Estimated loss on disposal of business	35,315	0
Gain on sale of leveraged lease assets, net of tax	0	(12,886)
Proceeds from settlement of derivative instruments	4,838	0
Depreciation and amortization	167,377	191,507
Stock-based compensation	12,061	13,505
Restructuring charges and asset impairments	55,771	11,060
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivables	111,549	58,135
(Increase) decrease in finance receivables	128,812	144,442
(Increase) decrease in inventories	36,967	(7,620)
(Increase) decrease in other current assets and prepayments	(13,588)	(20,426)
Increase (decrease) in accounts payable and accrued liabilities	(192,373)	(157,156)
Increase (decrease) in current and non-current income taxes	11,861	38,761
Increase (decrease) in advance billings	(23,179)	(1,551)
Increase (decrease) in other operating capital, net	31,559	34,929
Net cash provided by operating activities	493,560	404,628
Cash flows from investing activities:
Short-term and other investments	2,162	(23,250)
Capital expenditures	(103,392)	(127,816)
Proceeds from sale of leveraged lease assets	0	105,506
Net investment in external financing	(1,609)	(134)
Proceeds from Divestiture of Businesses	2,627	0
Reserve account deposits	(16,962)	(15,373)
Net cash (used in) provided by investing activities	(117,174)	(61,067)
Cash flows from financing activities:
Proceeds from the issuance of long-term obligations, net of fees and discounts of $13,387	411,613	0
Principal payments of long-term obligations	779,637	550,000
Proceeds from the issuance of common stock under employee stock-based compensation plans	(6,499)	(6,989)
Dividends paid to stockholders	(150,955)	(225,282)
Dividends paid to noncontrolling interests	9,188	9,188
Net cash used in financing activities	(521,668)	(777,481)
Effect of exchange rate changes on cash and cash equivalents	(8,358)	2,471
Decrease in cash and cash equivalents	(153,640)	(431,449)
Cash and cash equivalents at beginning of period	913,276	856,238
Cash and cash equivalents at end of period	759,636	424,789
Cash interest paid	162,938	170,119
Cash income tax payments, net of refund	$ 110,396	$ 145,090

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Accumulated Other Comprehensive Loss (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Schedule of Accumulated Comprehensive Income [Line Items]
Document Fiscal Year Focus					2013
Revenue	$ (169)	[1]	$ 456	[1]	$ (922)	[1]	$ 1,230	[1]
Cost of sales	108	[1]	(56)	[1]	520	[1]	(129)	[1]
Interest expense	(507)	[1]	(507)	[1]	(1,521)	[1]	(1,521)	[1]
Total before tax	(568)	[1]	(107)	[1]	(1,923)	[1]	(420)	[1]
Tax benefit	222	[1]	43	[1]	750	[1]	165	[1]
Net of tax	(346)	[1]	(64)	[1]	(1,173)	[1]	(255)	[1]
Interest income	1,640	[1]	(41)	[1]	(962)	[1]	(517)	[1]
Tax benefit	(607)	[1]	15	[1]	356	[1]	191	[1]
Net of tax	1,033	[1]	(26)	[1]	(606)	[1]	(326)	[1]
Transition credit	2	[1],[2]	2	[1],[2]	6	[1],[2]	6	[1],[2]
Prior service (costs) credit	(163)	[1],[2]	295	[1],[2]	(524)	[1],[2]	884	[1],[2]
Actuarial losses	(12,136)	[1],[2]	(18,852)	[1],[2]	(44,038)	[1],[2]	(56,376)	[1],[2]
Total before tax	(12,297)	[1],[2]	(18,555)	[1],[2]	(44,556)	[1],[2]	(55,486)	[1],[2]
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Tax	4,347	[1],[2]	6,404	[1],[2]	15,613	[1],[2]	20,371	[1],[2]
Net of tax	7,950	[1],[2]	12,151	[1],[2]	28,943	[1],[2]	35,115	[1],[2]
Balance Beginning					(681,213)		(661,645)
Other comprehensive income (loss) before reclassifications					(42,289)	[3]	81	[3]
Amounts reclassified from accumulated other comprehensive income					26,909	[3],[4],[5]	35,696	[3],[4],[5]
Amounts reclassified from accumulated other comprehensive income	7,950		12,151		28,943		35,115
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(222)		589		(4,667)		967
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	62		25		962		578
Other Comprehensive Income (Loss), Net of Tax	(26,930)		(31,790)		15,380		(35,777)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(696,593)		(625,868)		(696,593)		(625,868)
Gains (losses) on cash flow hedges
Schedule of Accumulated Comprehensive Income [Line Items]
Balance Beginning					(7,777)		(8,438)
Other comprehensive income (loss) before reclassifications					(211)	[3]	323	[3]
Amounts reclassified from accumulated other comprehensive income					1,173	[3],[4],[5]	255	[3],[4],[5]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax					962		578
Accumulated Other Comprehensive Income (Loss), Net of Tax	(6,815)		(7,860)		(6,815)		(7,860)
Unrealized gains (losses) on available for sale securities
Schedule of Accumulated Comprehensive Income [Line Items]
Net of tax					606	[3],[4],[5]	326	[3],[4],[5]
Balance Beginning					4,513		4,387
Other comprehensive income (loss) before reclassifications					(5,273)	[3]	641	[3]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax					(4,667)		967
Accumulated Other Comprehensive Income (Loss), Net of Tax	(154)		5,354		(154)		5,354
Defined benefit pension plans and nonpension postretirement benefit plans
Schedule of Accumulated Comprehensive Income [Line Items]
Balance Beginning					(759,199)		(741,546)
Amounts reclassified from accumulated other comprehensive income					28,943	[3],[4],[5]	35,115	[3],[4],[5]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax					28,943		35,115
Accumulated Other Comprehensive Income (Loss), Net of Tax	(730,256)		(706,431)		(730,256)		(706,431)
Foreign currency items
Schedule of Accumulated Comprehensive Income [Line Items]
Balance Beginning					81,250		83,952
Other comprehensive income (loss) before reclassifications					(36,805)	[3]	(883)	[3]
Amounts reclassified from accumulated other comprehensive income					(3,813)	[3],[4],[5]	0	[3],[4],[5]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax					(40,618)		(883)
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 40,632		$ 83,069		$ 40,632		$ 83,069

[1] Amounts in parentheses indicate debits (reductions) to income.

[2] These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

[3] Amounts are net of tax. Amounts in parentheses indicate debits to AOCI.

[4] Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income.

[5] See table above for additional details of these reclassifications.

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Intangible Assets and Goodwill 2 (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Finite lived intangible assets future amortization expense
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 8,848
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	34,246
Finite-Lived Intangible Assets, Amortization Expense, Year Two	30,288
Finite-Lived Intangible Assets, Amortization Expense, Year Three	22,935
Finite-Lived Intangible Assets, Amortization Expense, Year Four	11,352
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	20,919
Finite lived intangible assets, net	$ 128,588

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2013

AOCI Compnents [Abstract]

Schedule of Accumulated Comprehensive Income

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012 were as follows:

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities			Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2013	$	(7,777	)	$	4,513		$	(759,199	)	$	81,250		$	(681,213	)
Other comprehensive income (loss) before reclassifications (a)	(211		)	(5,273		)	—			(36,805		)	(42,289		)
Amounts reclassified from accumulated other comprehensive income (a), (b), (c)	1,173			606			28,943			(3,813		)	26,909
Net current period other comprehensive income	962			(4,667		)	28,943			(40,618		)	(15,380		)
Balance at September 30, 2013	$	(6,815	)	$	(154	)	$	(730,256	)	$	40,632		$	(696,593	)

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities		Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2012	$	(8,438	)	$	4,387	$	(741,546	)	$	83,952		$	(661,645	)
Other comprehensive income (loss) before reclassifications (a)	323			641		—			(883		)	81
Amounts reclassified from accumulated other comprehensive income (a), (b)	255			326		35,115			—			35,696
Net current period other comprehensive income	578			967		35,115			(883		)	35,777
Balance at September 30, 2012	$	(7,860	)	$	5,354	$	(706,431	)	$	83,069		$	(625,868	)

(a)     Amounts are net of tax. Amounts in parentheses indicate debits to AOCI.

(b)     See table above for additional details of these reclassifications.

(c) Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income.

Schedule of Accumulated Other Comprehensive Income (Loss)

Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30,2013 and 2012 was as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Gains (losses) on cash flow hedges
Revenue	$	(169	)	$	456		$	(922	)	$	1,230
Cost of sales	108			(56		)	520			(129		)
Interest expense	(507		)	(507		)	(1,521		)	(1,521		)
Total before tax	(568		)	(107		)	(1,923		)	(420		)
Tax benefit	222			43			750			165
Net of tax	$	(346	)	$	(64	)	$	(1,173	)	$	(255	)
Unrealized gains (losses) on available for sale securities
Interest income	$	1,640		$	(41	)	$	(962	)	$	(517	)
Tax benefit	(607		)	15			356			191
Net of tax	$	1,033		$	(26	)	$	(606	)	$	(326	)
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2		$	6		$	6
Prior service (costs) credit	(163		)	295			(524		)	884
Actuarial losses	(12,136		)	(18,852		)	(44,038		)	(56,376		)
Total before tax	(12,297		)	(18,555		)	(44,556		)	(55,486		)
Tax benefit	4,347			6,404			15,613			20,371
Net of tax	$	(7,950	)	$	(12,151	)	$	(28,943	)	$	(35,115	)

(a)     Amounts in parentheses indicate debits (reductions) to income.

(b) These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

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Accumulated Other Comprehensive Loss (Notes)

9 Months Ended

Sep. 30, 2013

Accumulated Other Comprehensive Income [Abstract]

Accuumulated Other Comprehensive Loss

12. Accumulated Other Comprehensive Loss

Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30,2013 and 2012 was as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Gains (losses) on cash flow hedges
Revenue	$	(169	)	$	456		$	(922	)	$	1,230
Cost of sales	108			(56		)	520			(129		)
Interest expense	(507		)	(507		)	(1,521		)	(1,521		)
Total before tax	(568		)	(107		)	(1,923		)	(420		)
Tax benefit	222			43			750			165
Net of tax	$	(346	)	$	(64	)	$	(1,173	)	$	(255	)
Unrealized gains (losses) on available for sale securities
Interest income	$	1,640		$	(41	)	$	(962	)	$	(517	)
Tax benefit	(607		)	15			356			191
Net of tax	$	1,033		$	(26	)	$	(606	)	$	(326	)
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2		$	6		$	6
Prior service (costs) credit	(163		)	295			(524		)	884
Actuarial losses	(12,136		)	(18,852		)	(44,038		)	(56,376		)
Total before tax	(12,297		)	(18,555		)	(44,556		)	(55,486		)
Tax benefit	4,347			6,404			15,613			20,371
Net of tax	$	(7,950	)	$	(12,151	)	$	(28,943	)	$	(35,115	)

(a)     Amounts in parentheses indicate debits (reductions) to income.

(b) These items are included in the computation of net periodic costs of defined benefit pension plans and nonpension postretirement benefit plans (see Note 15 for additional details).

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012 were as follows:

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities			Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2013	$	(7,777	)	$	4,513		$	(759,199	)	$	81,250		$	(681,213	)
Other comprehensive income (loss) before reclassifications (a)	(211		)	(5,273		)	—			(36,805		)	(42,289		)
Amounts reclassified from accumulated other comprehensive income (a), (b), (c)	1,173			606			28,943			(3,813		)	26,909
Net current period other comprehensive income	962			(4,667		)	28,943			(40,618		)	(15,380		)
Balance at September 30, 2013	$	(6,815	)	$	(154	)	$	(730,256	)	$	40,632		$	(696,593	)

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available for sale securities		Defined benefit pension plans and nonpension postretirement benefit plans			Foreign currency items			Total
Balance at January 1, 2012	$	(8,438	)	$	4,387	$	(741,546	)	$	83,952		$	(661,645	)
Other comprehensive income (loss) before reclassifications (a)	323			641		—			(883		)	81
Amounts reclassified from accumulated other comprehensive income (a), (b)	255			326		35,115			—			35,696
Net current period other comprehensive income	578			967		35,115			(883		)	35,777
Balance at September 30, 2012	$	(7,860	)	$	5,354	$	(706,431	)	$	83,069		$	(625,868	)

(a)     Amounts are net of tax. Amounts in parentheses indicate debits to AOCI.

(b)     See table above for additional details of these reclassifications.

(c) Foreign currency item amount represents the recognition of deferred translation upon the sale of the U.K. IMS business and PBMSi. Amount was reclassified from accumulated other comprehensive loss and recorded as discontinued operations in the Condensed Consolidated Statements of Income.

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Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible assets

Intangible assets consisted of the following:

	September 30, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	353,241	$	(244,275	)	$	108,966	$	407,901	$	(269,100	)	$	138,801
Supplier relationships	29,000		(24,288		)	4,712		29,000		(22,113		)	6,887
Software & technology	166,397		(153,153		)	13,244		169,632		(151,628		)	18,004
Trademarks & trade names	35,177		(33,549		)	1,628		35,078		(32,615		)	2,463
Non-compete agreements	7,349		(7,311		)	38		7,471		(7,412		)	59
Total intangible assets	$	591,164	$	(462,576	)	$	128,588	$	649,082	$	(482,868	)	$	166,214

Amortization expense for intangible assets was $8 million and $9 million for the three months ended September 30, 2013 and 2012, respectively, and $26 million and $30 million for the nine months ended September 30, 2013 and 2012, respectively. The future amortization expense for intangible assets as of September 30, 2013 was as follows:

Remaining for year ended December 31, 2013	$	8,848
Year ended December 31, 2014	34,246
Year ended December 31, 2015	30,288
Year ended December 31, 2016	22,935
Year ended December 31, 2017	11,352
Thereafter	20,919
Total	$	128,588

Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, future acquisitions and accelerated amortization.

Goodwill

As a result of the change in reporting segments, we reallocated goodwill among some of our segments and performed the required goodwill impairment test. Based on the results of the impairment tests, we determined that the estimated fair values of the affected reporting units exceeded the carrying values.

The changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows:

	Gross value before accumulated impairment		Accumulated impairment			December 31, 2012		Impairment (2)			Other (1)			September 30, 2013
North America Mailing	$	355,874	$	—		$	355,874	$	—		$	2,439		$	358,313
International Mailing	183,908		—			183,908		(1,162		)	(1,633		)	181,113
Small & Medium Business Solutions	539,782		—			539,782		(1,162		)	806			539,426
Production Mail	131,865		—			131,865		—			(15,050		)	116,815
Management Services (2)	488,399		(84,500		)	403,899		(100,253		)	(1,159		)	302,487
Presort Services	259,106		(63,965		)	195,141		—			—			195,141
Enterprise Business Solutions	879,370		(148,465		)	730,905		(100,253		)	(16,209		)	614,443
Digital Commerce Solutions	865,451		—			865,451		—			12,345			877,796
Total	$	2,284,603	$	(148,465	)	$	2,136,138	$	(101,415	)	$	(3,058	)	$	2,031,665
Reclassified to Assets held for sale (2)														(302,487		)
Balance at September 30, 2013														$	1,729,178

(1) Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments.

(2) The goodwill impairment charges are included in (loss) income from discontinued operations in the Condensed Consolidated Statements of Income (Loss). The remaining carrying value of goodwill in the Management Services segment is included in assets held for sale in the Condensed Consolidated Balance Sheet (see Note 4). Management Services was previously a reporting segment prior to our change in segment reporting (see Note 2).

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Pensions and Other Benefit Programs

9 Months Ended

Sep. 30, 2013

Notes To Condensed Consolidated Financial Statements [Abstract]

Pensions and Other Benefit Programs

Pensions and Other Benefit Programs

Defined Benefit Pension Plans

The components of net periodic benefit cost for defined benefit pension plans were as follows:

	Three Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	3,597		$	4,735		$	968		$	1,774
Interest cost	18,264			20,260			1,870			6,909
Expected return on plan assets	(26,781		)	(30,406		)	(3,266		)	(8,069		)
Amortization of transition credit	—			—			(2		)	(2		)
Amortization of prior service cost	95			200			28			28
Amortization of net actuarial loss	7,690			13,240			2,873			3,558
Settlement	145			—			—			192
Special termination benefits	—			—			104			—
Net periodic benefit cost	$	3,010		$	8,029		$	2,575		$	4,390

	Nine Months Ended September 30,
	United States						Foreign
	2013			2012			2013			2012
Service cost	$	10,890		$	14,204		$	5,280		$	5,805
Interest cost	55,169			60,780			25,246			20,766
Expected return on plan assets	(80,908		)	(91,218		)	(31,187		)	(24,133		)
Amortization of transition credit	—			—			(6		)	(6		)
Amortization of prior service cost	318			602			84			83
Amortization of net actuarial loss	26,234			39,719			11,511			10,546
Settlement	1,561			—			—			442
Special termination benefits	548			—			104			—
Curtailment	814			—			—			—
Net periodic benefit cost	$	14,626		$	24,087		$	11,032		$	13,503

Through September 30, 2013, we contributed $9 million to our U.S. pension plans and $10 million to our foreign pension plans.

Nonpension Postretirement Benefit Plans

The components of net periodic benefit cost for nonpension postretirement benefit plans were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Service cost	$	935	$	801		$	2,966	$	2,560
Interest cost	2,186		2,896			7,210		8,685
Amortization of prior service cost (credit)	40		(523		)	122		(1,569		)
Amortization of net actuarial loss	1,573		2,054			6,293		6,111
Net periodic benefit cost	$	4,734	$	5,228		$	16,591	$	15,787

Contributions for benefit payments for our nonpension postretirement benefit plans were $5 million and $7 million for the three months ended September 30, 2013 and 2012, respectively, and $21 million for each of the nine months ended September 30, 2013 and 2012.

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Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended September 30, 2013 and 2012 was 12.3% and 24.8%, respectively, and the effective tax rate for the nine months ended September 30, 2013 and 2012 was 19.1% and 20.8%, respectively.

The effective tax rate for the three and nine months ended September 30,2013 includes a tax benefit of $13 million from an affiliate reorganization and benefits of $4 million and $11 million, respectively, related to tax planning initiatives. The effective tax rate for the nine months ended September 30, 2013 also includes benefits of $5 million from the adjustment of non-U.S. tax accounts from prior periods and $4 million from the retroactive effect of 2013 U.S. tax legislation.

The effective tax rate for the three and nine months ended September 30,2012 includes tax benefits of $36 million and $58 million, respectively, from the resolution of tax examinations and tax accruals of $28 million for the repatriation of non-U.S. earnings. The effective tax rate for the nine months ended September 30, 2012 also includes tax benefits of $17 million from the sale of non-U.S. leveraged lease assets

As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S., other countries and local jurisdictions in which we have operations. We expect the examination of our 2009 through 2011 tax returns by the Internal Revenue Service (IRS) to be completed within the next 12 months. We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we do business and account for the related financial statement implications. We believe we have established tax reserves that are appropriate given the possibility of tax adjustments. However, determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax law and the possibility of tax adjustments. Future changes in tax reserve requirements could have a material impact, positive or negative, on our results of operations, financial position and cash flows. It is reasonably possible that the amount of our unrecognized tax benefits will decrease in the next 12 months, and we expect this change could be up to twenty percent of our unrecognized tax benefits.

On August 27, 2012, the United States Court of Appeals for the Third Circuit overturned a prior Tax Court decision and ruled in favor of the IRS and adverse to the Historic Boardwalk Hall LLC, a partnership in which we had made an investment in the year 2000. The case has been sent back to the Tax Court for additional proceedings. Based on our entitlement to indemnification under the partnership agreement, we do not expect this matter to have a material effect on our results of operations. However, the potential for a difference in the timing of payments which may be due to taxing authorities and the timing of receipts due to us under the partnership agreement may cause fluctuations in our cash flows in future periods.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 22, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Entity Registrant Name	PITNEY BOWES INC /DE/
Entity Central Index Key	0000078814
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Entity Common Stock Shares Outstanding		201,992,623

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Notes To Condensed Consolidated Financial Statements [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 customers; 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. However, as litigation is inherently unpredictable, there can be no assurances in this regard.