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Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries)
3 Months Ended
Sep. 30, 2011
Notes To Condensed Consolidated Financial Statements [Abstract] 
Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries)

8. Noncontrolling Interests (Preferred Stockholders' Equity in Subsidiaries)

 

In 2009, Pitney Bowes International Holdings, Inc. (PBIH), a subsidiary of ours, issued 300,000 shares, or $300 million, of perpetual voting preferred stock (the Preferred Stock) to certain outside 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% for a period of seven years 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, 2011 or December 31, 2010.

 

The carrying value of the Preferred Stock is reported as Noncontrolling interests (Preferred stockholders' equity in subsidiaries) on the Condensed Consolidated Balance Sheets. Preferred Stock dividends are reported in the Condensed Consolidated Statements of Income as Preferred stock dividends of subsidiaries attributable to noncontrolling interests. There was no change in the carrying value of noncontrolling interests during the period ended September 30, 2011 or the year ended December 31, 2010.