Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type leases 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 at December 31, 2011 and 2010 were as follows:


	December 31, 2011
	North America		International		Total
Sales-type lease receivables
Gross finance receivables	$	1,727,653	$	460,101	$	2,187,754
Unguaranteed residual values		185,450		20,443		205,893
Unearned income		(348,286)		(102,618)		(450,904)
Allowance for credit losses		(28,661)		(12,039)		(40,700)
Net investment in sales-type lease receivables		1,536,156		365,887		1,902,043

Loan receivables
Loan receivables		436,631		40,937		477,568
Allowance for credit losses		(20,272)		(2,458)		(22,730)
Net investment in loan receivables		416,359		38,479		454,838
Net investment in finance receivables	$	1,952,515	$	404,366	$	2,356,881



	December 31, 2010
	North America		International		Total

Sales-type lease receivables
Gross finance receivables	$	1,940,833	$	474,895	$	2,415,728
Unguaranteed residual values		235,392		20,333		255,725
Unearned income		(415,891)		(107,592)		(523,483)
Allowance for credit losses		(27,792)		(13,318)		(41,110)
Net investment in sales-type lease receivables		1,732,542		374,318		2,106,860

Loan Receivables
Loan receivables		453,362		34,193		487,555
Allowance for credit losses		(26,208)		(2,112)		(28,320)
Net investment in loan receivables		427,154		32,081		459,235
Net investment in finance receivables	$	2,159,696	$	406,399	$	2,566,095

	December 31, 2010
	U.S		International		Total

Sales-type lease receivables
Gross finance receivables	$	#REF!	$	#REF!	$	#REF!
Unguaranteed residual values		#REF!		#REF!		#REF!
Unearned income		#REF!		#REF!		#REF!
Allowance for credit losses		#REF!		#REF!		#REF!
Net investment in sales-type lease receivables		#REF!		#REF!		#REF!

Loan receivables
Loan receivable		#REF!		#REF!		#REF!
Allowance for credit losses		#REF!		#REF!		#REF!
Net investment in loan receivables		#REF!		#REF!		#REF!
Net investment in finance receivables	$	#REF!	$	#REF!	$	#REF!

	Sales-type Lease Receivables						Loan Receivables
	North America		International		Total		North America		International		Total

2012	$	737,813	$	118,938	$	856,751	$	436,631	$	40,937	$	477,568
2013		492,477		105,440		597,917		-		-		-
2014		299,965		92,832		392,797		-		-		-
2015		151,598		73,762		225,360		-		-		-
2016		44,487		60,666		105,153		-		-		-
Thereafter		1,313		8,463		9,776		-		-		-
Total	$	1,727,653	$	460,101	$	2,187,754	$	436,631	$	40,937	$	477,568

Activity in the allowance for credit losses for finance receivables for each of the three years ended December 31, 2011, 2010 and 2009 is as follows:

	Allowance for Credit Losses
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total

Balance January 1, 2009	$	31,182	$	12,232	$	25,759	$	2,617	$	71,790
Amounts charged to expense		19,067		8,674		32,007		2,007		61,755
Accounts written off		(19,244)		(7,829)		(31,927)		(2,387)		(61,387)
Balance December 31, 2009		31,005		13,077		25,839		2,237		72,158
Amounts charged to expense		13,211		6,719		20,046		2,024		42,000
Accounts written off		(16,424)		(6,478)		(19,677)		(2,149)		(44,728)
Balance December 31, 2010		27,792		13,318		26,208		2,112		69,430
Amounts charged to expense		13,726		5,087		7,631		1,610		28,054
Accounts written off		(12,857)		(6,366)		(13,567)		(1,264)		(34,054)
Balance December 31, 2011	$	28,661	$	12,039	$	20,272	$	2,458	$	63,430

We maintain a program for U.S. borrowers 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 borrower's credit line is closed, interest accrual is suspended, the borrower's minimum required payment is reduced and the account is re-aged and classified as current. There is generally no forgiveness of debt or reduction of balances owed. The loans in the program are considered to be troubled debt restructurings because of the concessions granted to the borrower. At December 31, 2011 and 2010, loans in this program had a balance of $7 million.

The allowance for credit losses for these modified loans is determined by the difference between cash flows expected to be received from the borrower discounted at the original effective rate and the carrying value of the loan. The allowance for credit losses related to such loans was $2 million and $1 million at December 31, 2011 and 2010, respectively, and is included in the balance of the allowance for credit losses of North American loans in the table above. Management believes that the allowance for credit losses is adequate for these loans and all other loans in the portfolio. Write-offs of loans in the program were $1 million in each of the years ended December 31, 2011 and 2010, respectively.

The aging of gross finance receivables at December 31, 2011 and 2010 was as follows:

	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
December 31, 2011
< 31 days past due	$	1,641,706	$	434,811	$	414,434	$	38,841	$	2,529,792
> 30 days and < 61 days		41,018		10,152		12,399		1,066		64,635
> 60 days and < 91 days		24,309		5,666		4,362		425		34,762
> 90 days and < 121 days		4,912		3,207		2,328		186		10,633
> 120 days		15,708		6,265		3,108		419		25,500
TOTAL	$	1,727,653	$	460,101	$	436,631	$	40,937	$	2,665,322
Past due amounts > 90 days
Still accruing interest	$	4,912	$	3,207	$	-	$	-	$	8,119
Not accruing interest		15,708		6,265		5,436		605		28,014
TOTAL	$	20,620	$	9,472	$	5,436	$	605	$	36,133

December 31, 2010
< 31 days past due	$	1,831,655	$	447,459	$	430,042	$	32,389	$	2,741,545
> 30 days and < 61 days		45,234		10,018		12,081		1,149		68,482
> 60 days and < 91 days		29,380		4,743		4,711		325		39,159
> 90 days and < 121 days		8,654		3,985		2,712		192		15,543
> 120 days		25,910		8,690		3,816		138		38,554
TOTAL	$	1,940,833	$	474,895	$	453,362	$	34,193	$	2,903,283
Past due amounts > 90 days
Still accruing interest	$	8,654	$	3,985	$	-	$	-	$	12,639
Not accruing interest		25,910		8,690		6,528		330		41,458
TOTAL	$	34,564	$	12,675	$	6,528	$	330	$	54,097

We use credit scores as one of many data elements in making the decision to grant credit at inception, setting credit lines at inception, managing credit lines through the life of the customer, and to assist in collections strategy.

We use a third party to score the majority of the North American portfolio on a quarterly basis using a commercial credit score. Accounts may not receive a score because of data issues related to SIC information, customer identification mismatches between the various data sources and other reasons. We do not currently score the portfolios outside of North America because the cost to do so is prohibitive, it is a fragmented process and there is no single credit score model that covers all countries. However, credit policies are similar to those in North America.

The table below shows the North American portfolio at December 31, 2011 and 2010 by relative risk class (low, medium and high) based on the relative scores of the accounts within each class. A fourth class is shown for accounts that are not scored. 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. Absence of a score is not indicative of the credit quality of the account.

Although the relative score of accounts within each class is used as a factor for determining the establishment of a customer credit limit, it is not indicative of our actual history of losses due to the business essential nature of our products and services.

The aging schedule included above, showing approximately 1.4% of the portfolio as greater than 90 days past due, and the roll-forward schedule of the allowance for credit losses, showing the actual history of losses for the three most recent years ended December 31, 2011 are more representative of the potential loss performance of our portfolio than relative risk based on scores, as defined by the third party.

At December 31, 2011, PBB had assets of $738 million and liabilities of $680 million. The bank's assets consist of finance receivables, short and long-term investments and cash. PBB's key product offering, Purchase Power, is a revolving credit solution, which enables customers to finance their postage costs when they refill their meter. PBB earns revenue through transaction fees, finance charges on outstanding balances, and other fees for services. The bank's liabilities consist primarily of PBB's deposit solution, Reserve Account, which provides value to large-volume mailers who prefer to prepay postage and earn interest on their deposits. PBB is regulated by the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.

	December 31,
	2011		2010
Rental receivables	$	810,306	$	1,802,107
Unguaranteed residual values		13,784		14,141
Principal and interest on non-recourse loans		(606,708)		(1,373,651)
Unearned income		(79,111)		(191,591)
Investment in leveraged leases		138,271		251,006
Less: deferred taxes related to leveraged leases		(101,255)		(192,128)
Net investment in leveraged leases	$	37,016	$	58,878

The following is a summary of the components of income from leveraged leases:

	December 31,
	2011		2010		2009
Pre-tax leveraged lease income	$	6,090	$	8,334	$	918
Income tax effect		(381)		(863)		6,676
Income from leveraged leases	$	5,709	$	7,471	$	7,594

During the year, we completed a sale of non-U.S. leveraged lease assets for cash. The investment in that leveraged lease on the date of sale was $109 million and an after-tax gain of $27 million was recognized. The effects of the sale are not included in the table above.

There was no impact on income from leveraged leases in 2011 due to changes in statutory tax rates. Income from leveraged leases was positively impacted by $2 million and $3 million in 2010 and 2009, respectively, due to changes in statutory tax rates.