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 March 31, 2017

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.)
3001 Summer Street, Stamford, Connecticut	06926
(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	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. 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 April 26, 2017, 186,500,998 shares of common stock, par value $1 per share, of the registrant were outstanding.

1

PITNEY BOWES INC.

INDEX

		Page Number
Part I - Financial Information:
Item 1:	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2017 and 2016	3
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016	4
	Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4:	Controls and Procedures	33
Part II - Other Information:
Item 1:	Legal Proceedings	34
Item 1A:	Risk Factors	34
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6:	Exhibits	35
Signatures		36

2

PART I. FINANCIAL INFORMATION

Item 1: Financial Statements

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2017		2016
Revenue:
Equipment sales	$	162,974	$	159,361
Supplies	66,818		72,051
Software	77,867		78,058
Rentals	99,870		104,090
Financing	85,745		97,423
Support services	118,847		128,260
Business services	224,519		205,346
Total revenue	836,640		844,589
Costs and expenses:
Cost of equipment sales	69,562		71,539
Cost of supplies	21,471		20,690
Cost of software	25,308		26,815
Cost of rentals	20,662		20,495
Financing interest expense	12,974		14,915
Cost of support services	73,354		75,249
Cost of business services	150,843		135,538
Selling, general and administrative	306,303		326,882
Research and development	31,856		26,568
Restructuring charges and asset impairments, net	2,082		6,933
Interest expense, net	25,676		19,301
Total costs and expenses	740,091		744,925
Income before income taxes	96,549		99,664
Provision for income taxes	31,416		37,024
Net income	65,133		62,640
Less: Preferred stock dividends attributable to noncontrolling interests	—		4,594
Net income attributable to Pitney Bowes Inc.	$	65,133	$	58,046
Earnings per share attributable to common stockholders:
Basic	$	0.35	$	0.30
Diluted	$	0.35	$	0.30
Dividends declared per share of common stock	$	0.1875	$	0.1875

See Notes to Condensed Consolidated Financial Statements

3

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; in thousands)

	Three Months Ended March 31,
	2017			2016
Net income	$	65,133		$	62,640
Less: Preferred stock dividends attributable to noncontrolling interests	—			4,594
Net income attributable to Pitney Bowes Inc.	65,133			58,046
Other comprehensive income, net of tax:
Foreign currency translations	19,915			39,849
Net unrealized gain (loss) on cash flow hedges, net of tax of $353 and $(18), respectively	576			(28		)
Net unrealized gain on investment securities, net of tax of $344 and $2,029, respectively	585			3,454
Adjustments to pension and postretirement plans, net of tax of $(304) and $(777), respectively	(1,482		)	(1,230		)
Amortization of pension and postretirement costs, net of tax of $3,517 and $3,799, respectively	6,708			6,748
Other comprehensive income, net of tax	26,302			48,793
Comprehensive income attributable to Pitney Bowes Inc.	$	91,435		$	106,839

See Notes to Condensed Consolidated Financial Statements

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PITNEY BOWES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	March 31, 2017			December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	739,553		$	764,522
Short-term investments	43,895			38,448
Accounts receivable (net of allowance of $14,613 and $14,372, respectively)	389,990			455,527
Short-term finance receivables (net of allowance of $13,844 and $13,323, respectively)	853,390			893,950
Inventories	115,638			92,726
Current income taxes	11,919			11,373
Other current assets and prepayments	78,749			68,637
Total current assets	2,233,134			2,325,183
Property, plant and equipment, net	319,899			314,603
Rental property and equipment, net	178,281			188,054
Long-term finance receivables (net of allowance of $5,986 and $7,177, respectively)	664,630			673,207
Goodwill	1,583,302			1,571,335
Intangible assets, net	159,200			165,172
Noncurrent income taxes	78,946			74,806
Other assets	529,779			524,773
Total assets	$	5,747,171		$	5,837,133
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities	$	1,317,532		$	1,378,822
Current income taxes	49,933			34,434
Current portion of long-term debt	785,287			614,485
Advance billings	295,688			299,878
Total current liabilities	2,448,440			2,327,619
Deferred taxes on income	210,604			204,289
Tax uncertainties and other income tax liabilities	61,195			61,276
Long-term debt	2,499,025			2,750,405
Other noncurrent liabilities	574,245			597,204
Total liabilities	5,793,509			5,940,793
Commitments and contingencies (See Note 12)
Stockholders’ deficit:
Cumulative preferred stock, $50 par value, 4% convertible	1			1
Cumulative preference stock, no par value, $2.12 convertible	478			483
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued)	323,338			323,338
Additional paid-in capital	126,564			148,125
Retained earnings	5,138,300			5,107,734
Accumulated other comprehensive loss	(913,831		)	(940,133		)
Treasury stock, at cost (137,029,999 and 137,669,194 shares, respectively)	(4,721,188		)	(4,743,208		)
Total Pitney Bowes Inc. stockholders’ deficit	(46,338		)	(103,660		)
Total liabilities and stockholders’ deficit	$	5,747,171		$	5,837,133

See Notes to Condensed Consolidated Financial Statements

5

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

	Three Months Ended March 31,
	2017			2016
Cash flows from operating activities:
Net income	$	65,133		$	62,640
Restructuring payments	(12,416		)	(21,656		)
Special pension plan contributions	—			(36,731		)
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on disposal of businesses	—			2,059
Depreciation and amortization	44,295			44,300
Gain on debt forgiveness	—			(10,000		)
Stock-based compensation	5,638			6,303
Restructuring charges and asset impairments, net	2,082			6,933
Changes in operating assets and liabilities, net of acquisitions/divestitures:
Decrease in accounts receivable	67,765			77,629
Decrease in finance receivables	63,390			53,935
Increase in inventories	(22,195		)	(11,489		)
Increase in other current assets and prepayments	(9,746		)	(7,955		)
Decrease in accounts payable and accrued liabilities	(32,829		)	(110,067		)
Increase in current and non-current income taxes	13,542			13,380
(Decrease) increase in advance billings	(9,194		)	1,289
Other, net	(21,459		)	(7,077		)
Net cash provided by operating activities	154,006			63,493
Cash flows from investing activities:
Purchases of available-for-sale securities	(34,308		)	(31,661		)
Proceeds from sales/maturities of available-for-sale securities	34,396			46,209
Capital expenditures	(35,920		)	(40,670		)
Acquisition of businesses, net of cash acquired	(7,889		)	(13,371		)
Change in reserve account deposits	(19,346		)	(16,253		)
Other investing activities	(5,803		)	(4,786		)
Net cash used in investing activities	(68,870		)	(60,532		)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	—			300,000
Principal payments of long-term debt	(79,278		)	(370,952		)
Net change in short-term borrowings	—			179,550
Dividends paid to stockholders	(34,567		)	(36,010		)
Common stock repurchases	—			(128,451		)
Other financing activities	(5,658		)	(4,962		)
Net cash used in financing activities	(119,503		)	(60,825		)
Effect of exchange rate changes on cash and cash equivalents	9,398			19,906
Decrease in cash and cash equivalents	(24,969		)	(37,958		)
Cash and cash equivalents at beginning of period	764,522			640,190
Cash and cash equivalents at end of period	$	739,553		$	602,232
Cash interest paid	$	52,989		$	59,566
Cash income tax payments, net of refunds	$	18,511		$	25,585

See Notes to Condensed Consolidated Financial Statements

6

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

1. Description of Business and Basis of Presentation

Pitney Bowes Inc. (we, us, our, or the company), was incorporated in the state of Delaware in 1920. We are a global technology company offering innovative products and solutions that help our clients navigate the complex world of commerce. We offer products and solutions for customer information management, location intelligence and customer engagement to help our clients market to their customers, and products and solutions for shipping, mailing, and cross border ecommerce that enable the sending of packages across the globe. Clients around the world rely on our products, solutions and services. For more information about us, our products, services and solutions, visit www.pb.com.

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, 2016 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 fairly state 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, 2017. 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, 2016 (2016 Annual Report).

In the fourth quarter of 2016, we determined that certain investments were classified as cash and cash equivalents. Accordingly, the Condensed Consolidated Statement of Cash Flows for the period ended March 31, 2016 has been revised to reduce beginning cash and cash equivalents by $10 million and ending cash and cash equivalents by $11 million with corresponding change to other investing activities.

New Accounting Pronouncements - Standards Adopted in 2017

In January 2017, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350),  Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the current two-step goodwill impairment test and requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit).  The ASU is effective for interim and annual periods beginning after December 15, 2019, and is required to be applied prospectively. We elected to early adopt this standard effective January 1, 2017.  The adoption of this standard had no impact on our consolidated financial statements or disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The standard includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. We retroactively adopted this ASU effective January 1, 2017. Accordingly, the Condensed Consolidated Statement of Cash Flows as of March 31, 2016 has been recast to increase net cash provided by operating activities and net cash used in financing activities by $5 million.

In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory, which requires inventory to be measured at the lower of cost and net realizable value (estimated selling price less reasonably predictable costs of completion, disposal and transportation). Inventory measured using the last-in, first-out (LIFO) basis is not impacted by the new guidance. This standard became effective January 1, 2017 and there was no impact on our consolidated financial statements or disclosures.

New Accounting Pronouncements - Standards Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. The standard is effective for interim and annual periods beginning after December 15, 2017 and we are currently assessing the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-06 – Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. The ASU requires separate disclosure in the statement of net assets available for benefits and the statement of changes in net assets available for benefits of changes in any interests held in a Master Trust and other enhanced disclosures. The standard is effective for interim and annual

7

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

periods beginning after December 15, 2018 and we are currently evaluating the impact of this standard on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business,which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for interim and annual periods beginning after December 15, 2017. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Inter-entity Transfers of Assets other than Inventory, which requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under current guidance, the tax effects of transfers are deferred until the transferred asset is sold or otherwise recovered through use. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases. This standard, among other things, will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability and result in enhanced disclosures. The standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue for the transfer of goods and services to customers in amounts that reflect the consideration the company expects to receive in exchange for those goods and services.  In addition, the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue.  There were several amendments to the standard during 2016, including clarification of the accounting for licenses of intellectual property and identifying performance obligations. The standard is effective beginning January 1, 2018 and can be adopted either retrospectively to each reporting period presented or on a modified retrospective basis with a cumulative effect adjustment at the date of the initial application. We plan to adopt the standard retrospectively with a cumulative effect adjustment. 

We are continuing to assess all potential impacts of the standard across all of our business segments and believe that the most significant impact will be in our Software Solutions segment related to the timing of software licenses and certain other ancillary revenue streams. In addition, we currently capitalize certain costs associated with the acquisition of new customers and recognize these costs over their expected revenue stream of eight years.  Under the new standard, these costs will be expensed as incurred.  Also, we are continuing to review our sales commission plans to determine which payments may be capitalized. We plan to use the practical expedient that allows companies to expense costs to obtain a contract when the estimated amortization period is less than one year. 

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

2. Segment Information

Effective January 1, 2017, we revised our segment reporting to reflect a change in how we manage and report office shipping solutions, which were previously reported within the Global Ecommerce segment. The needs of retail and ecommerce clients are different from those of office shipping clients. Accordingly, the results for office shipping solutions are now reported within Small & Medium Business Solutions and the retail and ecommerce shipping solutions remain in Global Ecommerce. Prior period results have been recast to conform to our current segment presentation. The principal products and services of each of our reportable segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in areas outside the U.S. and Canada.

Enterprise Business Solutions:

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

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

Digital Commerce Solutions:

Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information and location intelligence software solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions.

We determine segment earnings before interest and taxes (EBIT) 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 other items that are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level and believes that it provides a useful measure of 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 consolidated results of operations.

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

Revenue and EBIT by business segment is presented below:

	Revenue
	Three Months Ended March 31,
	2017		2016
North America Mailing	$	355,578	$	371,453
International Mailing	93,058		104,986
Small & Medium Business Solutions	448,636		476,439
Production Mail	88,955		87,425
Presort Services	132,677		127,396
Enterprise Business Solutions	221,632		214,821
Software Solutions	78,220		77,922
Global Ecommerce	88,152		75,407
Digital Commerce Solutions	166,372		153,329
Total revenue	$	836,640	$	844,589

	EBIT
	Three Months Ended March 31,
	2017			2016
North America Mailing	$	141,008		$	160,831
International Mailing	13,269			11,176
Small & Medium Business Solutions	154,277			172,007
Production Mail	8,964			6,824
Presort Services	30,717			28,910
Enterprise Business Solutions	39,681			35,734
Software Solutions	2,749			(2,572		)
Global Ecommerce	(4,270		)	(3,469		)
Digital Commerce Solutions	(1,521		)	(6,041		)
Total segment EBIT	192,437			201,700
Reconciling items:
Interest, net	(38,650		)	(34,216		)
Unallocated corporate expenses	(55,156		)	(57,767		)
Restructuring charges and asset impairments, net	(2,082		)	(6,933		)
Acquisition and disposition-related expenses	—			(3,120		)
Income before income taxes	96,549			99,664
Provision for income taxes	31,416			37,024
Net income	$	65,133		$	62,640

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

3. Earnings per Share

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

	Three Months Ended March 31,
	2017		2016
Numerator:
Amounts attributable to common stockholders:
Net income attributable to Pitney Bowes Inc. (numerator for diluted EPS)	$	65,133	$	58,046
Less: Preference stock dividend	9		10
Income attributable to common stockholders (numerator for basic EPS)	$	65,124	$	58,036
Denominator:
Weighted-average shares used in basic EPS	185,982		192,241
Effect of dilutive shares:
Conversion of Preferred stock and Preference stock	293		304
Employee stock plans	600		636
Weighted-average shares used in diluted EPS	186,875		193,181
Basic earnings per share	$	0.35	$	0.30
Diluted earnings per share	$	0.35	$	0.30
Anti-dilutive shares not used in calculating diluted weighted-average shares	11,176		8,870

4. Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined on the last-in, last-out (LIFO) basis for most U.S. inventories and the first-in, first-out (FIFO) basis for most non-U.S. inventories. Inventories at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017			December 31, 2016
Raw materials	$	35,499		$	28,541
Work in process	5,994			6,498
Supplies and service parts	49,729			45,152
Finished products	36,559			24,678
Inventory at FIFO cost	127,781			104,869
Excess of FIFO cost over LIFO cost	(12,143		)	(12,143		)
Total inventory, net	$	115,638		$	92,726

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

5. 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 supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Customer acquisition costs are expensed as incurred.

Finance receivables at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017									December 31, 2016
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,073,533		$	266,437		$	1,339,970		$	1,088,053		$	273,262		$	1,361,315
Unguaranteed residual values	89,292			13,543			102,835			90,190			13,655			103,845
Unearned income	(220,515		)	(61,056		)	(281,571		)	(223,908		)	(60,458		)	(284,366		)
Allowance for credit losses	(8,816		)	(2,569		)	(11,385		)	(8,247		)	(2,647		)	(10,894		)
Net investment in sales-type lease receivables	933,494			216,355			1,149,849			946,088			223,812			1,169,900
Loan receivables
Loan receivables	342,037			34,579			376,616			374,147			32,716			406,863
Allowance for credit losses	(7,369		)	(1,076		)	(8,445		)	(8,517		)	(1,089		)	(9,606		)
Net investment in loan receivables	334,668			33,503			368,171			365,630			31,627			397,257
Net investment in finance receivables	$	1,268,162		$	249,858		$	1,518,020		$	1,311,718		$	255,439		$	1,567,157

Allowance for Credit Losses

We provide an allowance for probable 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. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. The assumptions used in determining an estimate of credit losses are 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 loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days 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 low because of the geographic and industry diversification of our clients and small account balances for most of our clients.

12

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

Activity in the allowance for credit losses for the three months ended March 31, 2017 and 2016 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2017	$	8,247		$	2,647		$	8,517		$	1,089		$	20,500
Amounts charged to expense	1,758			178			639			144			2,719
Write-offs and other	(1,189		)	(256		)	(1,787		)	(157		)	(3,389		)
Balance at March 31, 2017	$	8,816		$	2,569		$	7,369		$	1,076		$	19,830
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2016	$	6,606		$	3,542		$	10,024		$	1,518		$	21,690
Amounts charged to expense	995			50			1,300			157			2,502
Write-offs and other	(1,705		)	(495		)	(2,138		)	(123		)	(4,461		)
Balance at March 31, 2016	$	5,896		$	3,097		$	9,186		$	1,552		$	19,731

Aging of Receivables

The aging of gross finance receivables at March 31, 2017 and December 31, 2016 was as follows:

	March 31, 2017
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,004,804	$	262,172	$	333,362	$	34,251	$	1,634,589
> 90 days	68,729		4,265		8,675		328		81,997
Total	$	1,073,533	$	266,437	$	342,037	$	34,579	$	1,716,586
Past due amounts > 90 days
Still accruing interest	$	12,104	$	1,192	$	—	$	—	$	13,296
Not accruing interest	56,625		3,073		8,675		328		68,701
Total	$	68,729	$	4,265	$	8,675	$	328	$	81,997

As of March 31, 2017, we had North America sales-type lease receivables aged greater than 90 days with a contract value of $69 million. As of April 28, 2017, we received payments with a contract value of approximately $26 million related to these receivables.

	December 31, 2016
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,025,313	$	269,247	$	366,726	$	32,420	$	1,693,706
> 90 days	62,740		4,015		7,421		296		74,472
Total	$	1,088,053	$	273,262	$	374,147	$	32,716	$	1,768,178
Past due amounts > 90 days
Still accruing interest	$	8,831	$	972	$	—	$	—	$	9,803
Not accruing interest	53,909		3,043		7,421		296		64,669
Total	$	62,740	$	4,015	$	7,421	$	296	$	74,472

13

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

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 portfolio because the cost to do so is prohibitive, given that 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 March 31, 2017 and December 31, 2016 by relative risk class 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 (low, medium, high), 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.

	March 31, 2017		December 31, 2016
Sales-type lease receivables
Low	$	865,202	$	879,823
Medium	137,624		135,953
High	22,202		22,600
Not Scored	48,505		49,677
Total	$	1,073,533	$	1,088,053
Loan receivables
Low	$	265,626	$	296,598
Medium	54,164		53,647
High	6,078		7,216
Not Scored	16,169		16,686
Total	$	342,037	$	374,147

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PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

6. Intangible Assets and Goodwill

Intangible Assets

Intangible assets at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	447,830	$	(308,756	)	$	139,074	$	445,039	$	(300,906	)	$	144,133
Software & technology	150,748		(137,693		)	13,055		150,037		(136,508		)	13,529
Trademarks & other	36,372		(29,301		)	7,071		36,212		(28,702		)	7,510
Total intangible assets	$	634,950	$	(475,750	)	$	159,200	$	631,288	$	(466,116	)	$	165,172

Amortization expense was $8 million and $11 million for the three months ended March 31, 2017 and 2016, respectively.

Future amortization expense as of March 31, 2017 was as follows:

Remaining for year ending December 31, 2017	$	21,768
Year ending December 31, 2018	27,455
Year ending December 31, 2019	24,079
Year ending December 31, 2020	18,904
Year ending December 31, 2021	15,301
Thereafter	51,693
Total	$	159,200

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

Goodwill

Changes in the carrying value of goodwill, by reporting segment, for the three months ended March 31, 2017 are shown in the table below. Prior year amounts have been recast for the change in reportable segments.

	December 31, 2016		Acquisitions		Foreign currency translation		March 31, 2017
North America Mailing	$	354,000	$	—	$	1,402	$	355,402
International Mailing	145,566		—		1,587		147,153
Small & Medium Business Solutions	499,566		—		2,989		502,555
Production Mail	101,099		—		766		101,865
Presort Services	196,890		6,229		—		203,119
Enterprise Business Solutions	297,989		6,229		766		304,984
Software Solutions	501,591		—		1,983		503,574
Global Ecommerce	272,189		—		—		272,189
Digital Commerce Solutions	773,780		—		1,983		775,763
Total goodwill	$	1,571,335	$	6,229	$	5,738	$	1,583,302

15

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

7. 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.

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 its placement within the fair value hierarchy. 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 March 31, 2017 and December 31, 2016.

	March 31, 2017
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	121,807	$	255,169		$	—	$	376,976
Equity securities	—		23,432			—		23,432
Commingled fixed income securities	1,543		21,598			—		23,141
Debt securities - U.S. and foreign governments, agencies and municipalities	111,144		22,126			—		133,270
Debt securities - corporate	—		71,093			—		71,093
Mortgage-backed / asset-backed securities	—		158,681			—		158,681
Derivatives
Interest rate swap	—		2,056			—		2,056
Foreign exchange contracts	—		889			—		889
Total assets	$	234,494	$	555,044		$	—	$	789,538
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(263	)	$	—	$	(263	)
Total liabilities	$	—	$	(263	)	$	—	$	(263	)

16

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

	December 31, 2016
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	114,471	$	217,175		$	—	$	331,646
Equity securities	—		24,571			—		24,571
Commingled fixed income securities	1,536		22,132			—		23,668
Debt securities - U.S. and foreign governments, agencies and municipalities	116,822		19,358			—		136,180
Debt securities - corporate	—		69,891			—		69,891
Mortgage-backed / asset-backed securities	—		158,996			—		158,996
Derivatives
Interest rate swap	—		1,588			—		1,588
Foreign exchange contracts	—		637			—		637
Total assets	$	232,829	$	514,348		$	—	$	747,177
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(3,717	)	$	—	$	(3,717	)
Total liabilities	$	—	$	(3,717	)	$	—	$	(3,717	)

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 / Asset-Backed Securities: These securities are valued based on external pricing indices. When external index pricing is not observable, these securities 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), whose primary business is to provide financing solutions to clients that rent postage meters and purchase supplies. The Bank's assets and liabilities consist primarily of cash, finance receivables, short and long-term investments and deposit accounts.

17

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

Available-For-Sale Securities

Certain investment securities are classified as available-for-sale and recorded at fair value in 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 March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	125,151	$	1,694	$	(1,473	)	$	125,372
Corporate notes and bonds	70,302		1,312		(521		)	71,093
Commingled fixed income securities	1,576		—		(33		)	1,543
Mortgage-backed / asset-backed securities	158,718		1,583		(1,620		)	158,681
Total	$	355,747	$	4,589	$	(3,647	)	$	356,689

	December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	136,316	$	1,571	$	(1,707	)	$	136,180
Corporate notes and bonds	69,376		1,180		(665		)	69,891
Commingled fixed income securities	1,568		—		(32		)	1,536
Mortgage-backed / asset-backed securities	159,312		1,566		(1,882		)	158,996
Total	$	366,572	$	4,317	$	(4,286	)	$	366,603

At March 31, 2017, investment securities that were in a loss position for 12 or more continuous months had aggregate unrealized holding losses of less than $1 million and an estimated fair value of $7 million, and investment securities that were in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $3 million and an estimated fair value of $166 million.

At December 31, 2016, investment securities that were in a loss position for 12 or more continuous months had aggregate unrealized holding losses of less than $1 million and an estimated fair value of $12 million, and investment securities that were in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $4 million and an estimated fair value of $171 million.

We have not recognized an other-than-temporary impairment on any of the investment securities in an unrealized loss position because we have the ability and intent to hold these securities until recovery of the unrealized losses and we expect to receive the contractual principal and interest on these investment securities at maturity.

Scheduled maturities of available-for-sale securities at March 31, 2017 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	29,886	$	29,936
After 1 year through 5 years	106,796		107,300
After 5 years through 10 years	63,107		63,339
After 10 years	155,958		156,114
Total	$	355,747	$	356,689

The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities as borrowers have the right to prepay obligations with or without prepayment penalties.

18

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

We have not experienced any significant write-offs in our investment portfolio. The majority of our mortgage-backed securities 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.

Derivative Instruments

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

Foreign Exchange Contracts

We enter into foreign 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 March 31, 2017 and December 31, 2016, we had outstanding contracts associated with these anticipated transactions with notional amounts of $12 million and $13 million, respectively.

The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. We also incorporate 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 in the credit default swap market. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties.

Interest Rate Swap

We entered into an interest rate swap with a notional amount of $300 million to mitigate the interest rate risk associated with our $300 million variable-rate term loans. The swap is designated as a cash flow hedge. The effective portion of the gain or loss on the cash flow hedge 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. Under the terms of the swap agreement, we pay fixed-rate interest of 0.8826% and receive variable-rate interest based on 1-month LIBOR. The variable interest rate resets monthly.

The valuation of our interest rate swap 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.

19

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

The fair value of derivative instruments at March 31, 2017 and December 31, 2016 was as follows:

Designation of Derivatives	Balance Sheet Location	March 31, 2017			December 31, 2016
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	$	353		$	487
	Accounts payable and accrued liabilities	(35		)	(136		)
Interest Rate Swap	Other assets	2,056			1,588
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	536			150
	Accounts payable and accrued liabilities	(228		)	(3,581		)
	Total derivative assets	$	2,945		$	2,225
	Total derivative liabilities	(263		)	(3,717		)
	Total net derivative asset (liabilities)	$	2,682		$	(1,492	)

The majority of the amounts included in AOCI at March 31, 2017 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 months ended March 31,2017 and 2016:

	Three Months Ended March 31,
	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	2017		2016				2017			2016
Foreign exchange contracts	$	50	$	(393	)	Revenue	$	(28	)	(380		)
						Cost of sales	111			225
Interest rate swap	468		—			Interest Expense	—			—
	$	518	$	(393	)		$	83		$	(155	)

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. All outstanding contracts at March 31, 2017 mature within 12 months.

The following represents the results of our non-designated derivative instruments for the three months ended March 31,2017 and 2016:

		Three Months Ended March 31,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2017			2016
Foreign exchange contracts	Selling, general and administrative expense	$	(1,849	)	$	(5,977	)

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 March 31, 2017, we did not post any collateral and the maximum amount of collateral that we would have been required to post had the credit-risk-related contingent features been triggered was not significant.

20

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

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. The inputs used to determine the fair value of our debt were classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at March 31, 2017 and December 31, 2016 were as follows:

	March 31, 2017		December 31, 2016
Carrying value	$	3,284,312	$	3,364,890
Fair value	$	3,341,434	$	3,412,581

8. Restructuring Charges

Activity in our restructuring reserves for the three months ended March 31, 2017 and 2016 was as follows:

	Severance and benefits costs			Other exit costs			Total
Balance at January 1, 2017	$	28,376		$	281		$	28,657
Expenses, net	1,419			67			1,486
Cash payments	(12,294		)	(122		)	(12,416		)
Balance at March 31, 2017	$	17,501		$	226		$	17,727
Balance at January 1, 2016	$	43,700		$	3,722		$	47,422
Expenses, net	4,590			1,060			5,650
Cash payments	(19,956		)	(1,700		)	(21,656		)
Balance at March 31, 2016	$	28,334		$	3,082		$	31,416

The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 months; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 24 months. We expect to fund these payments from cash flows from operations.

21

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

9. Debt

Total debt at March 31, 2017 and December 31, 2016 consisted of the following:

	Interest rate	March 31, 2017		December 31, 2016
Notes due September 2017	5.75%	$	385,109	$	385,109
Notes due March 2018	5.6%	250,000		250,000
Notes due May 2018	4.75%	350,000		350,000
Notes due March 2019	6.25%	300,000		300,000
Notes due October 2021	3.375%	600,000		600,000
Notes due March 2024	4.625%	500,000		500,000
Notes due January 2037	5.25%	35,841		115,041
Notes due March 2043	6.7%	425,000		425,000
Term loans	Variable	450,000		450,000
Other debt		5,584		5,677
Principal amount		3,301,534		3,380,827
Less: unamortized debt discount and issuance costs		27,600		28,796
Plus: unamortized interest rate swap proceeds		10,378		12,859
Total debt		3,284,312		3,364,890
Less: current portion long-term debt		785,287		614,485
Long-term debt		$	2,499,025	$	2,750,405

In January 2017, bondholders of the 5.25% Notes due 2037 caused us to redeem $79 million of the debt outstanding.

10. Pensions and Other Benefit Programs

The components of net periodic benefit cost (income) were as follows:

	Defined Benefit Pension Plans												Nonpension Postretirement Benefit Plans
	United States						Foreign
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31,						March 31,						March 31,
	2017			2016			2017			2016			2017		2016
Service cost	$	30		$	32		$	542		$	527		$	419	$	501
Interest cost	17,244			18,830			4,544			5,661			1,771		2,136
Expected return on plan assets	(24,548		)	(25,589		)	(7,780		)	(8,472		)	—		—
Amortization of transition credit	—			—			(2		)	(2		)	—		—
Amortization of prior service (credit) cost	(15		)	(15		)	(18		)	(17		)	74		74
Amortization of net actuarial loss	7,268			6,706			2,034			1,343			884		1,360
Settlement (1)	—			1,098			—			—			—		—
Net periodic benefit cost (income)	$	(21	)	$	1,062		$	(680	)	$	(960	)	$	3,148	$	4,071

(1) Included in restructuring charges and asset impairments, net in the Condensed Consolidated Statements of Income.

Through March 31, 2017 and 2016, contributions to our U.S. pension plans were $2 million and $4 million, respectively, and contributions to our foreign plans were $9 million and $38 million, respectively. Nonpension postretirement benefit plan contributions were $5 million and $4 million through March 31, 2017 and March 31, 2016, respectively.

22

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

11. Income Taxes

The effective tax rate for the three months ended March 31, 2017 and 2016 was 32.5% and 37.1%, respectively. The effective tax rate for the three months ended March 31, 2017 and 2016 includes a $4 million and $3 million charge, respectively, from the write-off of deferred tax assets associated with expiration of out-of-the-money vested stock options and the vesting of restricted stock. The effective tax rate for the three months ended March 31, 2017 also includes a $4 million benefit from the resolution of tax examinations.

As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, 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 25% of our unrecognized tax benefits.

The IRS examinations of our consolidated U.S. income tax returns for tax years prior to 2012 are closed to audit; however, various post-2006 U.S. state and local tax returns are still subject to examination. In Canada, the examination of our tax filings prior to 2011 are closed to audit, except for the pending application of legal principles to specific issues arising in earlier years. Other significant jurisdictions include France, which is closed to audit through the end of 2012, Germany, which is closed to audit through the end of 2011 and the U.K., which, except for an item under appeal, is closed to audit through the end of 2011. We have other less significant tax fillings currently subject to examination.

12. 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 clients; 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.

13. Stockholders’ (Deficit) Equity

Changes in stockholders’ (deficit) equity for the three months ended March 31, 2017 and 2016 were as follows:

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total deficit
Balance at January 1, 2017	$	1	$	483		$	323,338	$	148,125		$	5,107,734		$	(940,133	)	$	(4,743,208	)	$	(103,660	)
Net income	—		—			—		—			65,133			—			—			65,133
Other comprehensive income	—		—			—		—			—			26,302			—			26,302
Dividends paid	—		—			—		—			(34,567		)	—			—			(34,567		)
Issuance of common stock	—		—			—		(27,098		)	—			—			21,914			(5,184		)
Conversion to common stock	—		(5		)	—		(101		)	—			—			106			—
Stock-based compensation expense	—		—			—		5,638			—			—			—			5,638
Balance at March 31, 2017	$	1	$	478		$	323,338	$	126,564		$	5,138,300		$	(913,831	)	$	(4,721,188	)	$	(46,338	)

23

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2016	$	1	$	505		$	323,338	$	161,280		$	5,155,537		$	(888,635	)	$	(4,573,305	)	$	178,721
Net income	—		—			—		—			58,046			—			—			58,046
Other comprehensive loss	—		—			—		—			—			48,793			—			48,793
Dividends paid	—		—			—		—			(36,010		)	—			—			(36,010		)
Issuance of common stock	—		—			—		(21,555		)	—			—			17,421			(4,134		)
Conversion to common stock	—		(13		)	—		(273		)	—			—			286			—
Stock-based compensation expense	—		—			—		6,303			—			—			—			6,303
Repurchase of common stock	—		—			—		—			—			—			(128,451		)	(128,451		)
Balance at March 31, 2016	$	1	$	492		$	323,338	$	145,755		$	5,177,573		$	(839,842	)	$	(4,684,049	)	$	123,268

14. Accumulated Other Comprehensive Income (Loss)

Reclassifications out of AOCI for the three months ended March 31,2017 and 2016 were as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended March 31,
	2017			2016
Gains (losses) on cash flow hedges
Revenue	$	28		$	(380	)
Cost of sales	(111		)	225
Interest expense, net	(507		)	(507		)
Total before tax	(590		)	(662		)
Benefit for income tax	(230		)	(258		)
Net of tax	$	(360	)	$	(404	)
Gains (losses) on available for sale securities
Interest expense, net	$	(109	)	$	18
(Benefit) provision for income tax	(40		)	7
Net of tax	$	(69	)	$	11
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2
Prior service costs	(41		)	(42		)
Actuarial losses	(10,186		)	(9,409		)
Settlements	—			(1,098		)
Total before tax	(10,225		)	(10,547		)
Benefit from income tax	(3,517		)	(3,799		)
Net of tax	$	(6,708	)	$	(6,748	)

(a)     Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss).

(b) Reclassified from accumulated other comprehensive loss into selling, general and administrative expenses. These amounts are included in the computation of net periodic costs (see Note 10 for additional details).

24

PITNEY BOWES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)

Changes in AOCI for the three months ended March 31, 2017 and 2016 were as follows:

	Cash flow hedges			Available for sale securities		Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2017	$	(1,485	)	$	120	$	(787,813	)	$	(150,955	)	$	(940,133	)
Other comprehensive income (loss) before reclassifications (a)	216			516		(1,482		)	19,915			19,165
Reclassifications into earnings (a), (b)	360			69		6,708			—			7,137
Net other comprehensive income	576			585		5,226			19,915			26,302
Balance at March 31, 2017	$	(909	)	$	705	$	(782,587	)	$	(131,040	)	$	(913,831	)

	Cash flow hedges			Available for sale securities			Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2016	$	(3,912	)	$	536		$	(738,768	)	$	(146,491	)	$	(888,635	)
Other comprehensive (loss) income before reclassifications (a)	(432		)	3,465			(1,230		)	39,849			41,652
Reclassifications into earnings (a), (b)	404			(11		)	6,748			—			7,141
Net other comprehensive (loss) income	(28		)	3,454			5,518			39,849			48,793
Balance at March 31, 2016	$	(3,940	)	$	3,990		$	(733,250	)	$	(106,642	)	$	(839,842	)

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

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

25

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 and Section 21E of the Securities Exchange Act of 1934 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

• competitive factors, including pricing pressures, technological developments, introduction of new products and services by competitors and fuel prices

• our ability to fully utilize the new enterprise business platform in North America and successfully implement it internationally without significant disruption to existing operations

• our success in developing new products and services, including digital-based products and services, obtaining regulatory approval if required, and the market’s acceptance of these new products and services

• the success of our investment in rebranding the company to build market awareness and to create new demand for our products, services and solutions

• changes in postal or banking regulations

• macroeconomic factors, including global and regional business conditions that adversely impact customer demand, foreign currency exchange rates, interest rates and labor conditions

• capital market disruptions or credit rating downgrades that adversely impact our ability to access capital markets at reasonable costs

• the continued availability and security of key information systems and the cost to comply with information security requirements and privacy laws

• a breach of security, including a cyberattack or other comparable event

• 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

• the loss of some of our larger clients in the Global Ecommerce segment

• integrating newly acquired businesses including operations and product and service offerings

• intellectual property infringement claims

• our success at managing customer credit risk

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

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

• a disruption of our businesses due to changes in international or national political conditions, including the use of the mail for transmitting harmful biological agents or other terrorist attacks

• acts of nature

26

Overview

Revenue - First Quarter 2017 compared to First Quarter 2016

Revenue for the first quarter of 2017 decreased less than 1% to $837 million compared to $845 million in the first quarter of 2016 and increased slightly on a constant currency basis.

• Business services revenue grew 9% and equipment sales increased 2%. Financing revenue declined 12%, support services revenue declined 7%, supplies revenue declined 7% and rentals revenue declined 4%. Software revenue was flat.

• Small & Medium Business Solutions (SMB) revenue decreased 6% primarily due to lower recurring revenue streams. Revenue declined 11%, 7% on a constant currency basis, in International Mailing and 4% in North America Mailing. In North America, we continue to offer new products and digital capabilities, which resulted in an increase in equipment sales during the quarter, and our North America Mailing web channel experienced growth in the quarter.

• Enterprise Business Solutions revenue increased 3%, driven by a 4% increase in Presort Services and a 2% increase in Production Mail, 3% on a constant currency basis. During the quarter, we expanded our Presort Services network.

• Digital Commerce Solutions (DCS) revenue increased 9%, driven by a 17% increase in Global Ecommerce revenue, 20% on a constant currency basis. During the quarter, we continued to build our partner channels in Software Solutions, which contributed to revenue growth. In Global Ecommerce, we continued to add retailers to our cross-border platform and invest in market growth opportunities and innovation.

Net Income

Net income was $65 million for the first quarter of 2017 compared to $63 million in the first quarter of 2016. The increase was primarily due to benefits from our cost reduction initiatives and new enterprise business platform and a lower effective tax rate. Net income was negatively impacted by lower stream revenue and higher research and development costs as we continue to invest in strategic areas. Additionally, the first quarter of 2016 included a $10 million benefit associated with the forgiveness of a loan by the State of Connecticut.

Cash Flows

Cash flows from operations in the first quarter of 2017 was $154 million compared to $63 million in first quarter of 2016. The increase was primarily driven by the timing of accounts payable and lower variable compensation payments in the first quarter of 2017 compared to the first quarter of 2016. During the quarter we also used cash to:

• Reduce debt by $79 million;

• Pay dividends of $35 million to our common stockholders; and

• Invest $36 million on capital expenditures.

Outlook

We expect that the introduction of new products and digital capabilities, the implementation of our new enterprise business platform, incremental marketing programs, our prior restructuring actions and cost savings initiatives will provide long-term benefits. These benefits will be offset, in part, by a normalization of variable compensation and higher marketing and research and development expenses in 2017.

Within SMB Solutions, we anticipate that the introduction of new solutions and services, particularly those included in the Pitney Bowes Commerce Cloud, including our SendPro solution, will help further stabilize revenue over the long-term.

Within Enterprise Business Solutions, we anticipate revenue and profitability growth in Presort Services due to network expansion. We expect that Production Mail revenue growth will be challenged by consolidation and outsourcing pressures on services revenue and the timing of deals.

Within DCS, we continue to build our partner channel in Software Solutions by adding new regional systems integrators and location intelligence partners. We continue to invest in expanding the indirect channel and training partner sales and technical resources. Although it takes time for a partner program to add significantly to our revenue, this channel is already starting to contribute to revenue growth. We continue to focus on improving direct sales effectiveness to grow the license revenue pipeline. We have made changes to the sales organization structure to expedite this improvement. We anticipate continued growth in our ecommerce business resulting from expansion of our existing marketplace sites (sites where multiple sellers provide their offerings), individual retail clients, new client acquisition and expanded service offerings. We also will continue to invest in our retail and ecommerce shipping business. A strong U.S. dollar could continue to affect demand for U.S. goods sold to customers in other countries, but such an impact could continue to be mitigated by the positive effects of a weakened British Pound on sales of U.K. goods to customers in other countries. We continue to expand and globalize our cross-border ecommerce offerings, including the successful launch of our cross-border platform for Australian retail clients, which diversifies the business and helps to mitigate foreign currency risk.

27

RESULTS OF OPERATIONS

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

	Three Months Ended March 31,
	2017		2016		Actual % change		Constant Currency % change
Equipment sales	$	162,974	$	159,361	2	%	3	%
Supplies	66,818		72,051		(7	)%	(6	)%
Software	77,867		78,058		—	%	2	%
Rentals	99,870		104,090		(4	)%	(4	)%
Financing	85,745		97,423		(12	)%	(11	)%
Support services	118,847		128,260		(7	)%	(6	)%
Business services	224,519		205,346		9	%	10	%
Total revenue	$	836,640	$	844,589	(1	)%	—	%

	Three Months Ended March 31,
					Percentage of Revenue
	2017		2016		2017		2016
Cost of equipment sales	$	69,562	$	71,539	42.7	%	44.9	%
Cost of supplies	21,471		20,690		32.1	%	28.7	%
Cost of software	25,308		26,815		32.5	%	34.4	%
Cost of rentals	20,662		20,495		20.7	%	19.7	%
Financing interest expense	12,974		14,915		15.1	%	15.3	%
Cost of support services	73,354		75,249		61.7	%	58.7	%
Cost of business services	150,843		135,538		67.2	%	66.0	%
Total cost of revenue	$	374,174	$	365,241	44.7	%	43.2	%

The discussion below refers to revenue growth on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. We believe that the use of a constant currency revenue measure provides a better understanding of the underlying revenue performance of the businesses. Constant currency is calculated by converting our current period reported revenue at the prior year's exchange rates.

Revenue and Cost of Revenues - 2017 compared to 2016

Equipment sales

Equipment sales revenue increased2% in the quarter. On a constant currency basis, equipment sales increased 3%, primarily due to:

• 3% from higher inserter and sorter placements in Production Mail;

• 3% from higher equipment sales in North America Mailing; partially offset by

• 2% from a decline in equipment sales in International Mailing.

Cost of equipment sales as a percentage of equipment sales decreased to 42.7% in the quarter primarily due to additional sales of higher margin equipment in Production Mail and improved equipment sales margins in International Mailing due to cost savings initiatives.

Supplies

Supplies revenue decreased7% in the quarter. On a constant currency basis, supplies revenue decreased 6% primarily due to:

• 7% from North America mailing primarily due to a decline in installed mailing equipment and postage volumes; partially offset by

• 1% from higher supplies revenue in Production Mail.

Cost of supplies as a percentage of supplies revenue increased to 32.1% in the quarter due to higher mix of low margin products.

28

Software

Software revenue was flat in the quarter. On a constant currency basis revenue increased 2% primarily due to:

• 2% from increased licensing revenue, particularly Customer Information Management license revenues, reflecting progress in developing the indirect channel and traction with new offerings; and

• 2% from increases in data and software as a service (SaaS) revenue; partially offset by

• 1% from a decline in maintenance revenue.

Cost of software as a percentage of software revenue decreased to 32.5% for the quarter due to savings from cost reduction initiatives.

Rentals

Rentals revenue decreased4% for the quarter primarily due to a declining meter population. Cost of rentals as a percentage of rentals revenue increased to 20.7% for the quarter primarily due to higher costs associated with retiring aging meters.

Financing

Financing revenue decreased12% in the quarter. On a constant currency basis, financing revenue decreased11% primarily due to a decline in the portfolio and lower fees.

We allocate a portion of our total cost of borrowing to financing interest expense. In computing financing interest expense, we assume an 8:1 debt to equity leverage ratio and apply our overall effective interest rate to the average outstanding finance receivables.

Financing interest expense as a percentage of financing revenue decreased to 15.1% for the quarter primarily due to a lower average outstanding finance receivables balance.

Support Services

Support services revenue decreased7% in the quarter. On a constant currency basis, support services revenue decreased6% primarily due to:

• 4% from a decline in installed mailing equipment worldwide; and

• 2% from lower maintenance revenue on production mail equipment as some in-house mailers moved their mail processing to third-party service bureaus who service some of their own equipment.

Cost of support services as a percentage of support services revenue increased to 61.7% for the quarter primarily due to lower maintenance revenue without corresponding cost reduction.

Business Services

Business services revenue increased9% in the quarter. On a constant currency basis, business services revenue increased10% primarily due to:

• 7% from the growth in Global Ecommerce due to higher cross-border and retail volumes; and

• 3% from higher revenue in Presort Services from higher volumes.

Cost of business services as a percentage of business services revenue increased to 67.2% primarily due to higher costs in our Global Ecommerce business as we continue to invest in the business.

Selling, general and administrative (SG&A)

SG&A expense decreased 6% in the quarter to $306 million primarily due to $11 million of benefits related to our enterprise business platform, $3 million lower marketing expenses due to timing and the benefits of our cost-saving initiatives. Additionally, the first quarter of 2016 included a $10 million benefit associated with the forgiveness of a loan by the State of Connecticut.

Research and Development (R&D)

R&D expense increased 20% in the quarter to $32 million primarily due to additional investments in strategic innovation, particularly in our Digital Commerce Solutions segment, primarily Global Ecommerce.

Income taxes

See Note 11 to the Condensed Consolidated Financial Statements.

29

Business segment results - 2017 compared to 2016

The principal products and services of each of our reportable segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in areas outside the U.S. and Canada.

Enterprise Business Solutions:

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

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

Digital Commerce Solutions:

Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information and location intelligence software solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions.

We determine EBIT by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses and restructuring charges that are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management believes segment EBIT provides a useful measure to our 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 consolidated results of operations. See Note 2 to the Condensed Consolidated Financial Statements for a reconciliation of segment EBIT to net income.

Revenue and EBIT for the three months ended March 31, 2017 and 2016 by reportable segment are presented below:

	Revenue
	Three Months Ended March 31,
	2017		2016		Actual % change		Constant Currency % change
North America Mailing	$	355,578	$	371,453	(4	)%	(4	)%
International Mailing	93,058		104,986		(11	)%	(7	)%
Small & Medium Business Solutions	448,636		476,439		(6	)%	(5	)%
Production Mail	88,955		87,425		2	%	3	%
Presort Services	132,677		127,396		4	%	4	%
Enterprise Business Solutions	221,632		214,821		3	%	4	%
Software Solutions	78,220		77,922		—	%	3	%
Global Ecommerce	88,152		75,407		17	%	20	%
Digital Commerce Solutions	166,372		153,329		9	%	11	%
Total	$	836,640	$	844,589	(1	)%	—	%

30

	EBIT
	Three Months Ended March 31,
	2017			2016			% change
North America Mailing	$	141,008		$	160,831		(12	)%
International Mailing	13,269			11,176			19	%
Small & Medium Business Solutions	154,277			172,007			(10	)%
Production Mail	8,964			6,824			31	%
Presort Services	30,717			28,910			6	%
Enterprise Business Solutions	39,681			35,734			11	%
Software Solutions	2,749			(2,572		)	>100%
Global Ecommerce	(4,270		)	(3,469		)	(23	)%
Digital Commerce Solutions	(1,521		)	(6,041		)	75	%
Total	$	192,437		$	201,700		(5	)%

Small & Medium Business Solutions

North America Mailing

North America Mailing revenue decreased4% in the quarter primarily due to:

• 3% from lower financing revenue primarily due to a decline in the lease portfolio and lower fees; and

• 2% from declines in supplies and support services revenue due to a decline in installed mailing equipment and lower postage volumes; partially offset by

• 1% from an increase in equipment sales, reflecting our investments in digital capabilities and additional sales of new products.

EBIT decreased 12% in the quarter compared to the prior year, primarily due to the decline in higher margin recurring revenue streams.

International Mailing

International Mailing revenue decreased11% in the quarter. On a constant currency basis, revenue decreased7% primarily due to:

• 4% from lower equipment sales; and

• 3% from declines in rental, financing and support services revenue resulting from a decline in installed mailing equipment and the lease portfolio.

EBIT increased19% in the quarter, primarily due to improved equipment sales margins and lower expenses.

Enterprise Business Solutions

Production Mail

Production Mail revenue increased2% in the quarter. On a constant currency basis, revenue increased3% primarily due to:

• 6% from higher equipment sales due to higher inserter and sorter placements; partially offset by

• 3% due to lower support services revenue as a result of some in-house mailers shifting their mail processing to third-party outsourcers.

EBIT increased31% in the quarter, primarily due to higher sales of high margin inserting equipment and lower operating expenses.

Presort Services

Presort Services revenue increased4% in the quarter primarily due to the higher volumes of Standard Class and First Class mail.

EBIT increased6% in the quarter primarily due to higher revenue and improved margins.

Digital Commerce Solutions

Software Solutions

Software Solutions revenue increased less than 1% for the quarter. On a constant currency basis, revenue increased3% primarily due to:

• 2% from increased licensing revenue, particularly Customer Information Management license revenues, reflecting progress in developing the indirect channel and traction with new offerings; and

• 2% from increases in data and software as a service (SaaS) revenue; partially offset by

• 1% from a decline in maintenance revenue.

31

EBIT increased to $3 million for the quarter from a loss of $3 million in the prior year primarily due to improved gross margin and savings from cost reduction initiatives.

Global Ecommerce

Global Ecommerce revenue increased17% in the quarter. On a constant currency basis, revenue increased20% primarily due to:

• 9% from higher volumes in our cross-border marketplace, particularly in the U.K.;

• 6% from higher ecommerce shipping revenues; and

• 4% from higher retail volumes.

EBIT loss increased 23% to $4 million in the quarter as we continue to invest in the business. EBIT loss also includes $4 million of amortization expense in both 2017 and 2016.

LIQUIDITY AND CAPITAL RESOURCES

We believe that existing cash and investments, cash generated from operations and borrowing capacity under our commercial paper program will be sufficient to support our current cash needs, including discretionary uses such as capital investments, dividends, strategic acquisitions and share repurchases. Cash and cash equivalents and short-term investments were $783 million at March 31, 2017 and $803 million at December 31, 2016.We continuously review our credit 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 and cash equivalents held by our foreign subsidiaries were $524 million at March 31, 2017 and $475 million at December 31, 2016. 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 Flow Summary

Changes in cash and cash equivalents for the three months ended March 31, 2017 and 2016 were as follows:

	2017			2016			Change
Net cash provided by operating activities	$	154,006		$	63,493		$	90,513
Net cash used in investing activities	(68,870		)	(60,532		)	(8,338		)
Net cash used in financing activities	(119,503		)	(60,825		)	(58,678		)
Effect of exchange rate changes on cash and cash equivalents	9,398			19,906			(10,508		)
Change in cash and cash equivalents	$	(24,969	)	$	(37,958	)	$	12,989

Cash flows from operations increased$91 million, primarily due to:

• Lower variable compensation payments in 2017 attributable to 2016 performance;

• Timing of payments associated with the launch of our enterprise business platform and advertising campaign in 2016;

• Lower interest and tax payments; and

• A special U.K. pension contribution of $37 million made in 2016.

Cash flows used in investing activities increased by $8 million, primarily due to:

• Change in investment activities reduced cash by $19 million; partially offset by

• Lower acquisition spending of $5 million; and

• Lower capital expenditures of $5 million.

Cash flows used in financing activities increased by $59 million, primarily due to:

• Lower cash from debt activities of $188 million as we repaid $79 million of debt in 2017 compared to borrowing a net $109 million in 2016; partially offset by

• $128 million of share repurchases in 2016.

Financings and Capitalization

We are a "Well-Known Seasoned Issuer" within the meaning of Rule 405 under 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 billion to support our commercial paper issuances. The credit facility expires in January 2020. We have not drawn upon the credit facility.

32

At March 31, 2017, there were no outstanding commercial paper borrowings. As of March 31, 2016 there was $270 million of outstanding commercial paper borrowings with an effective interest rate of 1.13%.

In January 2017, bondholders of the 5.25% Notes due 2037 caused us to redeem $79 million of the debt outstanding.

Dividends and Share Repurchases

During the three months ended March 31, 2017, we paid dividends to our stockholders of $35 million. Each quarter, our Board of Directors considers our recent and projected earnings and other capital needs and priorities in deciding whether to approve the payment, as well as the amount, of a dividend. There are no material restrictions on our ability to declare dividends.

We did not repurchase any of our common shares during the first quarter of 2017.

Off-Balance Sheet Arrangements

At March 31, 2017, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, results of operations or liquidity.

Critical Accounting Estimates

Finance Receivables and Allowance for Credit Losses

Finance receivables are composed of sales-type lease receivables and unsecured revolving loan receivables. We provide an allowance for probable 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. At March 31, 2017 gross finance receivables aged greater than 90 days have grown since the implementation of our enterprise business platform in the second quarter of 2016. We believe the majority of the increased delinquency is administrative in nature and the result of a change in our billing format and process under our new enterprise business platform. The billing format under the platform is different and we are continuing to work with clients to reconcile amounts billed under the new format and thus such clients have not made payments. These accounts are considered delinquent in our analysis, but we continue to expect that payment in full will be received. The aging as disclosed in Note 5 of the condensed consolidated financial statements represents full contract value while only a small portion (approximately 30%) has been billed and recognized in income as of March 31, 2017.

As of March 31, 2017, we had North America sales-type lease receivables aged greater than 90 days with a contract value of $69 million. As of April 28, 2017, we received payments with a contract value of approximately $26 million related to these receivables.

The quality of the portfolio has not changed. Our loan portfolio delinquency has remained fairly constant when compared to loan delinquency in our legacy platform and there has been no significant changes in customers within the portfolio. Also, we use a third party to credit score our lease and loan portfolios. The credit quality of our portfolio as determined by this third party has shown no signs of deterioration suggesting that the increase in delinquency is not a result of our customer's ability to pay, but instead is a result of changes to invoice format and presentation. Accordingly, we do not believe that an increase in the allowance for credit losses as a result of the increase in delinquencies is necessary.

Regulatory Matters

There have been no significant changes to the regulatory matters disclosed in our 2016 Annual Report.

Item 3: Quantitative and Qualitative Disclosures about Market Risk

There were no material changes to the disclosures made in the 2016 Annual Report.

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 Securities Exchange Act of 1934, as amended (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 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 reports filed or submitted 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 CEO and CFO have reasonable assurance that the disclosure controls and procedures were effective as of March 31, 2017.

33

PART II. OTHER INFORMATION

Item 1: Legal Proceedings

See Note 12 to the Condensed Consolidated Financial Statements.

Item 1A: Risk Factors

There were no material changes to the risk factors identified in our 2016 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. The following table provides information about our purchases of our common stock during the three months ended March 31, 2017:

	Total Number of shares purchased	Average price paid per share	Total Number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may be purchased under the plans or programs (in thousands)
Beginning balance				21,022
January 1, 2017 - January 31, 2017	—	—	—	21,022
February 1, 2017 - February 28, 2017	—	—	—	21,022
March 1, 2017 - March 31, 2017	—	—	—	21,022
	—	—	—

34

Item 6: Exhibits

Exhibit Number	Description	Exhibit Number in this Form 10-Q
12	Computation of ratio of earnings to fixed charges	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	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	31.2
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350	32.1
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350	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

35

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:	May 2, 2017
		/s/ Stanley J. Sutula III
		Stanley J. Sutula III
		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)

36

Exhibit Index

Exhibit Number	Description	Exhibit Number in this Form 10-Q
12	Computation of ratio of earnings to fixed charges	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	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	31.2
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350	32.1
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350	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

37

EX-12

Exhibit 12

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

	Three Months Ended March 31,
	2017		2016
Income from continuing operations before income taxes	$	96,549	$	99,664
Add:
Interest expense	39,665		35,264
Portion of rent expense representative of the interest factor	4,126		3,767
Income as adjusted	$	140,340	$	138,695
Fixed charges:
Interest expense	$	39,665	$	35,264
Portion of rent expense representative of the interest factor	4,126		3,767
Noncontrolling interests (preferred stock dividends of subsidiaries), excluding taxes	—		7,470
Total fixed charges	$	43,791	$	46,501
Ratio of earnings to fixed charges	3.20		2.98

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: May 2, 2017

/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, Stanley J. Sutula III, 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: May 2, 2017

/s/ Stanley J. Sutula III

Stanley J. Sutula III

Executive Vice President and Chief Financial Officer (Principal 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 March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc B. Lautenbach, President and 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:    May 2, 2017

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 March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Monahan, Executive Vice President, Chief Operating Officer and 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/ Stanley J. Sutula III

Stanley J. Sutula III

Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date:    May 2, 2017

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

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 26, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	PITNEY BOWES INC /DE/
Entity Central Index Key	0000078814
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		186,500,998

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Equipment sales	$ 162,974	$ 159,361
Supplies	66,818	72,051
Software	77,867	78,058
Rentals	99,870	104,090
Financing	85,745	97,423
Support services	118,847	128,260
Business services	224,519	205,346
Total revenue	836,640	844,589
Costs and expenses:
Cost of equipment sales	69,562	71,539
Cost of supplies	21,471	20,690
Cost of software	25,308	26,815
Cost of rentals	20,662	20,495
Financing interest expense	12,974	14,915
Cost of support services	73,354	75,249
Cost of business services	150,843	135,538
Selling, general and administrative	306,303	326,882
Research and development	31,856	26,568
Restructuring charges and asset impairments, net	2,082	6,933
Interest expense, net	25,676	19,301
Total costs and expenses	740,091	744,925
Income before income taxes	96,549	99,664
Provision for income taxes	31,416	37,024
Net income	65,133	62,640
Less: Preferred stock dividends attributable to noncontrolling interests	0	4,594
Net income attributable to Pitney Bowes Inc.	$ 65,133	$ 58,046
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.35	$ 0.30
Diluted (in dollars per share)	0.35	0.30
Dividends declared per share of common stock (in dollars per share)	$ 0.1875	$ 0.1875

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 65,133	$ 62,640
Less: Preferred stock dividends attributable to noncontrolling interests	0	4,594
Net income attributable to Pitney Bowes Inc.	65,133	58,046
Other comprehensive income, net of tax:
Foreign currency translations	19,915	39,849
Net unrealized gain (loss) on cash flow hedges, net of tax of $353 and $(18), respectively	576	(28)
Net unrealized gain on investment securities, net of tax of $344 and $2,029, respectively	585	3,454
Adjustments to pension and postretirement plans, net of tax of $(304) and $(777), respectively	(1,482)	(1,230)
Amortization of pension and postretirement costs, net of tax of $3,517 and $3,799, respectively	6,708	6,748
Other comprehensive income, net of tax	26,302	48,793
Comprehensive income attributable to Pitney Bowes Inc.	$ 91,435	$ 106,839

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net unrealized gain (loss) on cash flow hedges, tax	$ 353	$ (18)
Net unrealized loss on investment securities, tax	344	2,029
Adjustments to pension and postretirement plans, tax	(304)	(777)
Benefit from income tax	$ 3,517	$ 3,799

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 739,553	$ 764,522
Short-term investments	43,895	38,448
Accounts receivable (net of allowance of $14,613 and $14,372, respectively)	389,990	455,527
Short-term finance receivables (net of allowance of $13,844 and $13,323, respectively)	853,390	893,950
Inventories	115,638	92,726
Current income taxes	11,919	11,373
Other current assets and prepayments	78,749	68,637
Total current assets	2,233,134	2,325,183
Property, plant and equipment, net	319,899	314,603
Rental property and equipment, net	178,281	188,054
Long-term finance receivables (net of allowance of $5,986 and $7,177, respectively)	664,630	673,207
Goodwill	1,583,302	1,571,335
Intangible assets, net	159,200	165,172
Noncurrent income taxes	78,946	74,806
Other assets	529,779	524,773
Total assets	5,747,171	5,837,133
Current liabilities:
Accounts payable and accrued liabilities	1,317,532	1,378,822
Current income taxes	49,933	34,434
Current portion of long-term debt	785,287	614,485
Advance billings	295,688	299,878
Total current liabilities	2,448,440	2,327,619
Deferred taxes on income	210,604	204,289
Tax uncertainties and other income tax liabilities	61,195	61,276
Long-term debt	2,499,025	2,750,405
Other noncurrent liabilities	574,245	597,204
Total liabilities	5,793,509	5,940,793
Commitments and contingencies (See Note 12)
Stockholders’ deficit:
Cumulative preferred stock, $50 par value, 4% convertible	1	1
Cumulative preference stock, no par value, $2.12 convertible	478	483
Common stock, $1 par value (480,000,000 shares authorized; 323,337,912 shares issued)	323,338	323,338
Additional paid-in capital	126,564	148,125
Retained earnings	5,138,300	5,107,734
Accumulated other comprehensive loss	(913,831)	(940,133)
Treasury stock, at cost (137,029,999 and 137,669,194 shares, respectively)	(4,721,188)	(4,743,208)
Total Pitney Bowes Inc. stockholders’ deficit	(46,338)	(103,660)
Total liabilities and stockholders’ deficit	$ 5,747,171	$ 5,837,133

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 14,613	$ 14,372
Short-term finance receivables allowance	13,844	13,232
Long-term finance receivables allowance	$ 5,986	$ 7,177
Preferred stock par value (in dollars per share)	$ 50	$ 50
Preferred stock dividend rate	4.00%	4.00%
Preference stock, par value (in dollars per share)	$ 0	$ 0
Preference stock dividend rate (in dollars per share)	2.12	2.12
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	480,000,000	480,000,000
Common stock, shares issued (in shares)	323,337,912	323,337,912
Treasury stock (in shares)	137,029,999	137,669,194

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 65,133	$ 62,640
Restructuring payments	(12,416)	(21,656)
Special pension plan contributions	0	(36,731)
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on disposal of businesses	0	2,059
Depreciation and amortization	44,295	44,300
Gain on debt forgiveness	0	(10,000)
Stock-based compensation	5,638	6,303
Restructuring charges and asset impairments, net	2,082	6,933
Changes in operating assets and liabilities, net of acquisitions/divestitures:
Decrease in accounts receivable	67,765	77,629
Decrease in finance receivables	63,390	53,935
Increase in inventories	(22,195)	(11,489)
Increase in other current assets and prepayments	(9,746)	(7,955)
Decrease in accounts payable and accrued liabilities	(32,829)	(110,067)
Increase in current and non-current income taxes	13,542	13,380
(Decrease) increase in advance billings	(9,194)	1,289
Other, net	(21,459)	(7,077)
Net cash provided by operating activities	154,006	63,493
Cash flows from investing activities:
Purchases of available-for-sale securities	(34,308)	(31,661)
Proceeds from sales/maturities of available-for-sale securities	34,396	46,209
Capital expenditures	(35,920)	(40,670)
Acquisition of businesses, net of cash acquired	(7,889)	(13,371)
Change in reserve account deposits	(19,346)	(16,253)
Other investing activities	(5,803)	(4,786)
Net cash used in investing activities	(68,870)	(60,532)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	0	300,000
Principal payments of long-term debt	(79,278)	(370,952)
Net change in short-term borrowings	0	179,550
Dividends paid to stockholders	(34,567)	(36,010)
Common stock repurchases	0	(128,451)
Other financing activities	(5,658)	(4,962)
Net cash used in financing activities	(119,503)	(60,825)
Effect of exchange rate changes on cash and cash equivalents	9,398	19,906
Decrease in cash and cash equivalents	(24,969)	(37,958)
Cash and cash equivalents at beginning of period	764,522	640,190
Cash and cash equivalents at end of period	739,553	602,232
Cash interest paid	52,989	59,566
Cash income tax payments, net of refunds	$ 18,511	$ 25,585

XML

Description of Business and Basis of Presentation

3 Months Ended

Mar. 31, 2017

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. (we, us, our, or the company), was incorporated in the state of Delaware in 1920. We are a global technology company offering innovative products and solutions that help our clients navigate the complex world of commerce. We offer products and solutions for customer information management, location intelligence and customer engagement to help our clients market to their customers, and products and solutions for shipping, mailing, and cross border ecommerce that enable the sending of packages across the globe. Clients around the world rely on our products, solutions and services. For more information about us, our products, services and solutions, visit www.pb.com.

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, 2016 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 fairly state 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, 2017. 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, 2016 (2016 Annual Report).

In the fourth quarter of 2016, we determined that certain investments were classified as cash and cash equivalents. Accordingly, the Condensed Consolidated Statement of Cash Flows for the period ended March 31, 2016 has been revised to reduce beginning cash and cash equivalents by $10 million and ending cash and cash equivalents by $11 million with corresponding change to other investing activities.

New Accounting Pronouncements - Standards Adopted in 2017

In January 2017, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350),  Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the current two-step goodwill impairment test and requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit).  The ASU is effective for interim and annual periods beginning after December 15, 2019, and is required to be applied prospectively. We elected to early adopt this standard effective January 1, 2017.  The adoption of this standard had no impact on our consolidated financial statements or disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The standard includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. We retroactively adopted this ASU effective January 1, 2017. Accordingly, the Condensed Consolidated Statement of Cash Flows as of March 31, 2016 has been recast to increase net cash provided by operating activities and net cash used in financing activities by $5 million.

In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory, which requires inventory to be measured at the lower of cost and net realizable value (estimated selling price less reasonably predictable costs of completion, disposal and transportation). Inventory measured using the last-in, first-out (LIFO) basis is not impacted by the new guidance. This standard became effective January 1, 2017 and there was no impact on our consolidated financial statements or disclosures.

New Accounting Pronouncements - Standards Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. The standard is effective for interim and annual periods beginning after December 15, 2017 and we are currently assessing the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-06 – Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. The ASU requires separate disclosure in the statement of net assets available for benefits and the statement of changes in net assets available for benefits of changes in any interests held in a Master Trust and other enhanced disclosures. The standard is effective for interim and annual periods beginning after December 15, 2018 and we are currently evaluating the impact of this standard on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business,which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for interim and annual periods beginning after December 15, 2017. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Inter-entity Transfers of Assets other than Inventory, which requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under current guidance, the tax effects of transfers are deferred until the transferred asset is sold or otherwise recovered through use. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases. This standard, among other things, will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability and result in enhanced disclosures. The standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue for the transfer of goods and services to customers in amounts that reflect the consideration the company expects to receive in exchange for those goods and services.  In addition, the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue.  There were several amendments to the standard during 2016, including clarification of the accounting for licenses of intellectual property and identifying performance obligations. The standard is effective beginning January 1, 2018 and can be adopted either retrospectively to each reporting period presented or on a modified retrospective basis with a cumulative effect adjustment at the date of the initial application. We plan to adopt the standard retrospectively with a cumulative effect adjustment. 

We are continuing to assess all potential impacts of the standard across all of our business segments and believe that the most significant impact will be in our Software Solutions segment related to the timing of software licenses and certain other ancillary revenue streams. In addition, we currently capitalize certain costs associated with the acquisition of new customers and recognize these costs over their expected revenue stream of eight years.  Under the new standard, these costs will be expensed as incurred.  Also, we are continuing to review our sales commission plans to determine which payments may be capitalized. We plan to use the practical expedient that allows companies to expense costs to obtain a contract when the estimated amortization period is less than one year.

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Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2017, we revised our segment reporting to reflect a change in how we manage and report office shipping solutions, which were previously reported within the Global Ecommerce segment. The needs of retail and ecommerce clients are different from those of office shipping clients. Accordingly, the results for office shipping solutions are now reported within Small & Medium Business Solutions and the retail and ecommerce shipping solutions remain in Global Ecommerce. Prior period results have been recast to conform to our current segment presentation. The principal products and services of each of our reportable segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in areas outside the U.S. and Canada.

Enterprise Business Solutions:

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

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

Digital Commerce Solutions:

Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information and location intelligence software solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions.

We determine segment earnings before interest and taxes (EBIT) 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 other items that are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level and believes that it provides a useful measure of 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 consolidated results of operations.

Revenue and EBIT by business segment is presented below:

	Revenue
	Three Months Ended March 31,
	2017		2016
North America Mailing	$	355,578	$	371,453
International Mailing	93,058		104,986
Small & Medium Business Solutions	448,636		476,439
Production Mail	88,955		87,425
Presort Services	132,677		127,396
Enterprise Business Solutions	221,632		214,821
Software Solutions	78,220		77,922
Global Ecommerce	88,152		75,407
Digital Commerce Solutions	166,372		153,329
Total revenue	$	836,640	$	844,589

	EBIT
	Three Months Ended March 31,
	2017			2016
North America Mailing	$	141,008		$	160,831
International Mailing	13,269			11,176
Small & Medium Business Solutions	154,277			172,007
Production Mail	8,964			6,824
Presort Services	30,717			28,910
Enterprise Business Solutions	39,681			35,734
Software Solutions	2,749			(2,572		)
Global Ecommerce	(4,270		)	(3,469		)
Digital Commerce Solutions	(1,521		)	(6,041		)
Total segment EBIT	192,437			201,700
Reconciling items:
Interest, net	(38,650		)	(34,216		)
Unallocated corporate expenses	(55,156		)	(57,767		)
Restructuring charges and asset impairments, net	(2,082		)	(6,933		)
Acquisition and disposition-related expenses	—			(3,120		)
Income before income taxes	96,549			99,664
Provision for income taxes	31,416			37,024
Net income	$	65,133		$	62,640

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Earnings per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

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

	Three Months Ended March 31,
	2017		2016
Numerator:
Amounts attributable to common stockholders:
Net income attributable to Pitney Bowes Inc. (numerator for diluted EPS)	$	65,133	$	58,046
Less: Preference stock dividend	9		10
Income attributable to common stockholders (numerator for basic EPS)	$	65,124	$	58,036
Denominator:
Weighted-average shares used in basic EPS	185,982		192,241
Effect of dilutive shares:
Conversion of Preferred stock and Preference stock	293		304
Employee stock plans	600		636
Weighted-average shares used in diluted EPS	186,875		193,181
Basic earnings per share	$	0.35	$	0.30
Diluted earnings per share	$	0.35	$	0.30
Anti-dilutive shares not used in calculating diluted weighted-average shares	11,176		8,870

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Inventories

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined on the last-in, last-out (LIFO) basis for most U.S. inventories and the first-in, first-out (FIFO) basis for most non-U.S. inventories. Inventories at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017			December 31, 2016
Raw materials	$	35,499		$	28,541
Work in process	5,994			6,498
Supplies and service parts	49,729			45,152
Finished products	36,559			24,678
Inventory at FIFO cost	127,781			104,869
Excess of FIFO cost over LIFO cost	(12,143		)	(12,143		)
Total inventory, net	$	115,638		$	92,726

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Finance Assets

3 Months Ended

Mar. 31, 2017

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 supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Customer acquisition costs are expensed as incurred.

Finance receivables at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017									December 31, 2016
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,073,533		$	266,437		$	1,339,970		$	1,088,053		$	273,262		$	1,361,315
Unguaranteed residual values	89,292			13,543			102,835			90,190			13,655			103,845
Unearned income	(220,515		)	(61,056		)	(281,571		)	(223,908		)	(60,458		)	(284,366		)
Allowance for credit losses	(8,816		)	(2,569		)	(11,385		)	(8,247		)	(2,647		)	(10,894		)
Net investment in sales-type lease receivables	933,494			216,355			1,149,849			946,088			223,812			1,169,900
Loan receivables
Loan receivables	342,037			34,579			376,616			374,147			32,716			406,863
Allowance for credit losses	(7,369		)	(1,076		)	(8,445		)	(8,517		)	(1,089		)	(9,606		)
Net investment in loan receivables	334,668			33,503			368,171			365,630			31,627			397,257
Net investment in finance receivables	$	1,268,162		$	249,858		$	1,518,020		$	1,311,718		$	255,439		$	1,567,157

Allowance for Credit Losses

We provide an allowance for probable 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. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. The assumptions used in determining an estimate of credit losses are 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 loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days 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 low because of the geographic and industry diversification of our clients and small account balances for most of our clients.

Activity in the allowance for credit losses for the three months ended March 31, 2017 and 2016 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2017	$	8,247		$	2,647		$	8,517		$	1,089		$	20,500
Amounts charged to expense	1,758			178			639			144			2,719
Write-offs and other	(1,189		)	(256		)	(1,787		)	(157		)	(3,389		)
Balance at March 31, 2017	$	8,816		$	2,569		$	7,369		$	1,076		$	19,830
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2016	$	6,606		$	3,542		$	10,024		$	1,518		$	21,690
Amounts charged to expense	995			50			1,300			157			2,502
Write-offs and other	(1,705		)	(495		)	(2,138		)	(123		)	(4,461		)
Balance at March 31, 2016	$	5,896		$	3,097		$	9,186		$	1,552		$	19,731

Aging of Receivables

The aging of gross finance receivables at March 31, 2017 and December 31, 2016 was as follows:

	March 31, 2017
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,004,804	$	262,172	$	333,362	$	34,251	$	1,634,589
> 90 days	68,729		4,265		8,675		328		81,997
Total	$	1,073,533	$	266,437	$	342,037	$	34,579	$	1,716,586
Past due amounts > 90 days
Still accruing interest	$	12,104	$	1,192	$	—	$	—	$	13,296
Not accruing interest	56,625		3,073		8,675		328		68,701
Total	$	68,729	$	4,265	$	8,675	$	328	$	81,997

As of March 31, 2017, we had North America sales-type lease receivables aged greater than 90 days with a contract value of $69 million. As of April 28, 2017, we received payments with a contract value of approximately $26 million related to these receivables.

	December 31, 2016
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,025,313	$	269,247	$	366,726	$	32,420	$	1,693,706
> 90 days	62,740		4,015		7,421		296		74,472
Total	$	1,088,053	$	273,262	$	374,147	$	32,716	$	1,768,178
Past due amounts > 90 days
Still accruing interest	$	8,831	$	972	$	—	$	—	$	9,803
Not accruing interest	53,909		3,043		7,421		296		64,669
Total	$	62,740	$	4,015	$	7,421	$	296	$	74,472

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 portfolio because the cost to do so is prohibitive, given that 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 March 31, 2017 and December 31, 2016 by relative risk class 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 (low, medium, high), 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.

	March 31, 2017		December 31, 2016
Sales-type lease receivables
Low	$	865,202	$	879,823
Medium	137,624		135,953
High	22,202		22,600
Not Scored	48,505		49,677
Total	$	1,073,533	$	1,088,053
Loan receivables
Low	$	265,626	$	296,598
Medium	54,164		53,647
High	6,078		7,216
Not Scored	16,169		16,686
Total	$	342,037	$	374,147

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Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

Intangible assets at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	447,830	$	(308,756	)	$	139,074	$	445,039	$	(300,906	)	$	144,133
Software & technology	150,748		(137,693		)	13,055		150,037		(136,508		)	13,529
Trademarks & other	36,372		(29,301		)	7,071		36,212		(28,702		)	7,510
Total intangible assets	$	634,950	$	(475,750	)	$	159,200	$	631,288	$	(466,116	)	$	165,172

Amortization expense was $8 million and $11 million for the three months ended March 31, 2017 and 2016, respectively.

Future amortization expense as of March 31, 2017 was as follows:

Remaining for year ending December 31, 2017	$	21,768
Year ending December 31, 2018	27,455
Year ending December 31, 2019	24,079
Year ending December 31, 2020	18,904
Year ending December 31, 2021	15,301
Thereafter	51,693
Total	$	159,200

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

Goodwill

Changes in the carrying value of goodwill, by reporting segment, for the three months ended March 31, 2017 are shown in the table below. Prior year amounts have been recast for the change in reportable segments.

	December 31, 2016		Acquisitions		Foreign currency translation		March 31, 2017
North America Mailing	$	354,000	$	—	$	1,402	$	355,402
International Mailing	145,566		—		1,587		147,153
Small & Medium Business Solutions	499,566		—		2,989		502,555
Production Mail	101,099		—		766		101,865
Presort Services	196,890		6,229		—		203,119
Enterprise Business Solutions	297,989		6,229		766		304,984
Software Solutions	501,591		—		1,983		503,574
Global Ecommerce	272,189		—		—		272,189
Digital Commerce Solutions	773,780		—		1,983		775,763
Total goodwill	$	1,571,335	$	6,229	$	5,738	$	1,583,302

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Fair Value Measurements and Derivative Instruments

3 Months Ended

Mar. 31, 2017

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.

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 its placement within the fair value hierarchy. 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 March 31, 2017 and December 31, 2016.

	March 31, 2017
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	121,807	$	255,169		$	—	$	376,976
Equity securities	—		23,432			—		23,432
Commingled fixed income securities	1,543		21,598			—		23,141
Debt securities - U.S. and foreign governments, agencies and municipalities	111,144		22,126			—		133,270
Debt securities - corporate	—		71,093			—		71,093
Mortgage-backed / asset-backed securities	—		158,681			—		158,681
Derivatives
Interest rate swap	—		2,056			—		2,056
Foreign exchange contracts	—		889			—		889
Total assets	$	234,494	$	555,044		$	—	$	789,538
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(263	)	$	—	$	(263	)
Total liabilities	$	—	$	(263	)	$	—	$	(263	)

	December 31, 2016
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	114,471	$	217,175		$	—	$	331,646
Equity securities	—		24,571			—		24,571
Commingled fixed income securities	1,536		22,132			—		23,668
Debt securities - U.S. and foreign governments, agencies and municipalities	116,822		19,358			—		136,180
Debt securities - corporate	—		69,891			—		69,891
Mortgage-backed / asset-backed securities	—		158,996			—		158,996
Derivatives
Interest rate swap	—		1,588			—		1,588
Foreign exchange contracts	—		637			—		637
Total assets	$	232,829	$	514,348		$	—	$	747,177
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(3,717	)	$	—	$	(3,717	)
Total liabilities	$	—	$	(3,717	)	$	—	$	(3,717	)

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 / Asset-Backed Securities: These securities are valued based on external pricing indices. When external index pricing is not observable, these securities 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), whose primary business is to provide financing solutions to clients that rent postage meters and purchase supplies. The Bank's assets and liabilities consist primarily of cash, finance receivables, short and long-term investments and deposit accounts.

Available-For-Sale Securities

Certain investment securities are classified as available-for-sale and recorded at fair value in 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 March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	125,151	$	1,694	$	(1,473	)	$	125,372
Corporate notes and bonds	70,302		1,312		(521		)	71,093
Commingled fixed income securities	1,576		—		(33		)	1,543
Mortgage-backed / asset-backed securities	158,718		1,583		(1,620		)	158,681
Total	$	355,747	$	4,589	$	(3,647	)	$	356,689

	December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	136,316	$	1,571	$	(1,707	)	$	136,180
Corporate notes and bonds	69,376		1,180		(665		)	69,891
Commingled fixed income securities	1,568		—		(32		)	1,536
Mortgage-backed / asset-backed securities	159,312		1,566		(1,882		)	158,996
Total	$	366,572	$	4,317	$	(4,286	)	$	366,603

At March 31, 2017, investment securities that were in a loss position for 12 or more continuous months had aggregate unrealized holding losses of less than $1 million and an estimated fair value of $7 million, and investment securities that were in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $3 million and an estimated fair value of $166 million.

At December 31, 2016, investment securities that were in a loss position for 12 or more continuous months had aggregate unrealized holding losses of less than $1 million and an estimated fair value of $12 million, and investment securities that were in a loss position for less than 12 continuous months had aggregate unrealized holding losses of $4 million and an estimated fair value of $171 million.

We have not recognized an other-than-temporary impairment on any of the investment securities in an unrealized loss position because we have the ability and intent to hold these securities until recovery of the unrealized losses and we expect to receive the contractual principal and interest on these investment securities at maturity.

Scheduled maturities of available-for-sale securities at March 31, 2017 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	29,886	$	29,936
After 1 year through 5 years	106,796		107,300
After 5 years through 10 years	63,107		63,339
After 10 years	155,958		156,114
Total	$	355,747	$	356,689

The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities as borrowers have the right to prepay obligations with or without prepayment penalties.

We have not experienced any significant write-offs in our investment portfolio. The majority of our mortgage-backed securities 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.

Derivative Instruments

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

Foreign Exchange Contracts

We enter into foreign 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 March 31, 2017 and December 31, 2016, we had outstanding contracts associated with these anticipated transactions with notional amounts of $12 million and $13 million, respectively.

The valuation of foreign exchange derivatives is based on the market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. We also incorporate 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 in the credit default swap market. We have not seen a material change in the creditworthiness of those banks acting as derivative counterparties.

Interest Rate Swap

We entered into an interest rate swap with a notional amount of $300 million to mitigate the interest rate risk associated with our $300 million variable-rate term loans. The swap is designated as a cash flow hedge. The effective portion of the gain or loss on the cash flow hedge 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. Under the terms of the swap agreement, we pay fixed-rate interest of 0.8826% and receive variable-rate interest based on 1-month LIBOR. The variable interest rate resets monthly.

The valuation of our interest rate swap 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 fair value of derivative instruments at March 31, 2017 and December 31, 2016 was as follows:

Designation of Derivatives	Balance Sheet Location	March 31, 2017			December 31, 2016
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	$	353		$	487
	Accounts payable and accrued liabilities	(35		)	(136		)
Interest Rate Swap	Other assets	2,056			1,588
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	536			150
	Accounts payable and accrued liabilities	(228		)	(3,581		)
	Total derivative assets	$	2,945		$	2,225
	Total derivative liabilities	(263		)	(3,717		)
	Total net derivative asset (liabilities)	$	2,682		$	(1,492	)

The majority of the amounts included in AOCI at March 31, 2017 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 months ended March 31,2017 and 2016:

	Three Months Ended March 31,
	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	2017		2016				2017			2016
Foreign exchange contracts	$	50	$	(393	)	Revenue	$	(28	)	(380		)
						Cost of sales	111			225
Interest rate swap	468		—			Interest Expense	—			—
	$	518	$	(393	)		$	83		$	(155	)

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. All outstanding contracts at March 31, 2017 mature within 12 months.

The following represents the results of our non-designated derivative instruments for the three months ended March 31,2017 and 2016:

		Three Months Ended March 31,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2017			2016
Foreign exchange contracts	Selling, general and administrative expense	$	(1,849	)	$	(5,977	)

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 March 31, 2017, we did not post any collateral and the maximum amount of collateral that we would have been required to post had the credit-risk-related contingent features been triggered was not significant.

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. The inputs used to determine the fair value of our debt were classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our debt at March 31, 2017 and December 31, 2016 were as follows:

	March 31, 2017		December 31, 2016
Carrying value	$	3,284,312	$	3,364,890
Fair value	$	3,341,434	$	3,412,581

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Restructuring Charges

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

Activity in our restructuring reserves for the three months ended March 31, 2017 and 2016 was as follows:

	Severance and benefits costs			Other exit costs			Total
Balance at January 1, 2017	$	28,376		$	281		$	28,657
Expenses, net	1,419			67			1,486
Cash payments	(12,294		)	(122		)	(12,416		)
Balance at March 31, 2017	$	17,501		$	226		$	17,727
Balance at January 1, 2016	$	43,700		$	3,722		$	47,422
Expenses, net	4,590			1,060			5,650
Cash payments	(19,956		)	(1,700		)	(21,656		)
Balance at March 31, 2016	$	28,334		$	3,082		$	31,416

The majority of the remaining restructuring reserves are expected to be paid over the next 12 to 24 months; however, due to certain international labor laws and long-term lease agreements, some payments will extend beyond 24 months. We expect to fund these payments from cash flows from operations.

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Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt

Debt

Total debt at March 31, 2017 and December 31, 2016 consisted of the following:

	Interest rate	March 31, 2017		December 31, 2016
Notes due September 2017	5.75%	$	385,109	$	385,109
Notes due March 2018	5.6%	250,000		250,000
Notes due May 2018	4.75%	350,000		350,000
Notes due March 2019	6.25%	300,000		300,000
Notes due October 2021	3.375%	600,000		600,000
Notes due March 2024	4.625%	500,000		500,000
Notes due January 2037	5.25%	35,841		115,041
Notes due March 2043	6.7%	425,000		425,000
Term loans	Variable	450,000		450,000
Other debt		5,584		5,677
Principal amount		3,301,534		3,380,827
Less: unamortized debt discount and issuance costs		27,600		28,796
Plus: unamortized interest rate swap proceeds		10,378		12,859
Total debt		3,284,312		3,364,890
Less: current portion long-term debt		785,287		614,485
Long-term debt		$	2,499,025	$	2,750,405

In January 2017, bondholders of the 5.25% Notes due 2037 caused us to redeem $79 million of the debt outstanding.

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Pensions and Other Benefit Programs

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Pensions and Other Benefit Programs

Pensions and Other Benefit Programs

The components of net periodic benefit cost (income) were as follows:

	Defined Benefit Pension Plans												Nonpension Postretirement Benefit Plans
	United States						Foreign
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31,						March 31,						March 31,
	2017			2016			2017			2016			2017		2016
Service cost	$	30		$	32		$	542		$	527		$	419	$	501
Interest cost	17,244			18,830			4,544			5,661			1,771		2,136
Expected return on plan assets	(24,548		)	(25,589		)	(7,780		)	(8,472		)	—		—
Amortization of transition credit	—			—			(2		)	(2		)	—		—
Amortization of prior service (credit) cost	(15		)	(15		)	(18		)	(17		)	74		74
Amortization of net actuarial loss	7,268			6,706			2,034			1,343			884		1,360
Settlement (1)	—			1,098			—			—			—		—
Net periodic benefit cost (income)	$	(21	)	$	1,062		$	(680	)	$	(960	)	$	3,148	$	4,071

(1) Included in restructuring charges and asset impairments, net in the Condensed Consolidated Statements of Income.

Through March 31, 2017 and 2016, contributions to our U.S. pension plans were $2 million and $4 million, respectively, and contributions to our foreign plans were $9 million and $38 million, respectively. Nonpension postretirement benefit plan contributions were $5 million and $4 million through March 31, 2017 and March 31, 2016, respectively.

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended March 31, 2017 and 2016 was 32.5% and 37.1%, respectively. The effective tax rate for the three months ended March 31, 2017 and 2016 includes a $4 million and $3 million charge, respectively, from the write-off of deferred tax assets associated with expiration of out-of-the-money vested stock options and the vesting of restricted stock. The effective tax rate for the three months ended March 31, 2017 also includes a $4 million benefit from the resolution of tax examinations.

As is the case with other large corporations, our tax returns are examined each year by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, 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 25% of our unrecognized tax benefits.

The IRS examinations of our consolidated U.S. income tax returns for tax years prior to 2012 are closed to audit; however, various post-2006 U.S. state and local tax returns are still subject to examination. In Canada, the examination of our tax filings prior to 2011 are closed to audit, except for the pending application of legal principles to specific issues arising in earlier years. Other significant jurisdictions include France, which is closed to audit through the end of 2012, Germany, which is closed to audit through the end of 2011 and the U.K., which, except for an item under appeal, is closed to audit through the end of 2011. We have other less significant tax fillings currently subject to examination.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [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 clients; 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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Stockholders' (Deficit) Equity

3 Months Ended

Mar. 31, 2017

Stockholders' Equity Note [Abstract]

Stockholders' (Deficit) Equity

Stockholders’ (Deficit) Equity

Changes in stockholders’ (deficit) equity for the three months ended March 31, 2017 and 2016 were as follows:

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total deficit
Balance at January 1, 2017	$	1	$	483		$	323,338	$	148,125		$	5,107,734		$	(940,133	)	$	(4,743,208	)	$	(103,660	)
Net income	—		—			—		—			65,133			—			—			65,133
Other comprehensive income	—		—			—		—			—			26,302			—			26,302
Dividends paid	—		—			—		—			(34,567		)	—			—			(34,567		)
Issuance of common stock	—		—			—		(27,098		)	—			—			21,914			(5,184		)
Conversion to common stock	—		(5		)	—		(101		)	—			—			106			—
Stock-based compensation expense	—		—			—		5,638			—			—			—			5,638
Balance at March 31, 2017	$	1	$	478		$	323,338	$	126,564		$	5,138,300		$	(913,831	)	$	(4,721,188	)	$	(46,338	)

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2016	$	1	$	505		$	323,338	$	161,280		$	5,155,537		$	(888,635	)	$	(4,573,305	)	$	178,721
Net income	—		—			—		—			58,046			—			—			58,046
Other comprehensive loss	—		—			—		—			—			48,793			—			48,793
Dividends paid	—		—			—		—			(36,010		)	—			—			(36,010		)
Issuance of common stock	—		—			—		(21,555		)	—			—			17,421			(4,134		)
Conversion to common stock	—		(13		)	—		(273		)	—			—			286			—
Stock-based compensation expense	—		—			—		6,303			—			—			—			6,303
Repurchase of common stock	—		—			—		—			—			—			(128,451		)	(128,451		)
Balance at March 31, 2016	$	1	$	492		$	323,338	$	145,755		$	5,177,573		$	(839,842	)	$	(4,684,049	)	$	123,268

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Reclassifications out of AOCI for the three months ended March 31,2017 and 2016 were as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended March 31,
	2017			2016
Gains (losses) on cash flow hedges
Revenue	$	28		$	(380	)
Cost of sales	(111		)	225
Interest expense, net	(507		)	(507		)
Total before tax	(590		)	(662		)
Benefit for income tax	(230		)	(258		)
Net of tax	$	(360	)	$	(404	)
Gains (losses) on available for sale securities
Interest expense, net	$	(109	)	$	18
(Benefit) provision for income tax	(40		)	7
Net of tax	$	(69	)	$	11
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2
Prior service costs	(41		)	(42		)
Actuarial losses	(10,186		)	(9,409		)
Settlements	—			(1,098		)
Total before tax	(10,225		)	(10,547		)
Benefit from income tax	(3,517		)	(3,799		)
Net of tax	$	(6,708	)	$	(6,748	)

(a)     Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss).

(b) Reclassified from accumulated other comprehensive loss into selling, general and administrative expenses. These amounts are included in the computation of net periodic costs (see Note 10 for additional details).

Changes in AOCI for the three months ended March 31, 2017 and 2016 were as follows:

	Cash flow hedges			Available for sale securities		Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2017	$	(1,485	)	$	120	$	(787,813	)	$	(150,955	)	$	(940,133	)
Other comprehensive income (loss) before reclassifications (a)	216			516		(1,482		)	19,915			19,165
Reclassifications into earnings (a), (b)	360			69		6,708			—			7,137
Net other comprehensive income	576			585		5,226			19,915			26,302
Balance at March 31, 2017	$	(909	)	$	705	$	(782,587	)	$	(131,040	)	$	(913,831	)

	Cash flow hedges			Available for sale securities			Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2016	$	(3,912	)	$	536		$	(738,768	)	$	(146,491	)	$	(888,635	)
Other comprehensive (loss) income before reclassifications (a)	(432		)	3,465			(1,230		)	39,849			41,652
Reclassifications into earnings (a), (b)	404			(11		)	6,748			—			7,141
Net other comprehensive (loss) income	(28		)	3,454			5,518			39,849			48,793
Balance at March 31, 2016	$	(3,940	)	$	3,990		$	(733,250	)	$	(106,642	)	$	(839,842	)

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

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

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Description of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements - Standards Adopted in 2017

In January 2017, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350),  Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the current two-step goodwill impairment test and requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit).  The ASU is effective for interim and annual periods beginning after December 15, 2019, and is required to be applied prospectively. We elected to early adopt this standard effective January 1, 2017.  The adoption of this standard had no impact on our consolidated financial statements or disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The standard includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. We retroactively adopted this ASU effective January 1, 2017. Accordingly, the Condensed Consolidated Statement of Cash Flows as of March 31, 2016 has been recast to increase net cash provided by operating activities and net cash used in financing activities by $5 million.

In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory, which requires inventory to be measured at the lower of cost and net realizable value (estimated selling price less reasonably predictable costs of completion, disposal and transportation). Inventory measured using the last-in, first-out (LIFO) basis is not impacted by the new guidance. This standard became effective January 1, 2017 and there was no impact on our consolidated financial statements or disclosures.

New Accounting Pronouncements - Standards Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost. The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. The standard is effective for interim and annual periods beginning after December 15, 2017 and we are currently assessing the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-06 – Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. The ASU requires separate disclosure in the statement of net assets available for benefits and the statement of changes in net assets available for benefits of changes in any interests held in a Master Trust and other enhanced disclosures. The standard is effective for interim and annual periods beginning after December 15, 2018 and we are currently evaluating the impact of this standard on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business,which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for interim and annual periods beginning after December 15, 2017. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Inter-entity Transfers of Assets other than Inventory, which requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under current guidance, the tax effects of transfers are deferred until the transferred asset is sold or otherwise recovered through use. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases. This standard, among other things, will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability and result in enhanced disclosures. The standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue for the transfer of goods and services to customers in amounts that reflect the consideration the company expects to receive in exchange for those goods and services.  In addition, the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue.  There were several amendments to the standard during 2016, including clarification of the accounting for licenses of intellectual property and identifying performance obligations. The standard is effective beginning January 1, 2018 and can be adopted either retrospectively to each reporting period presented or on a modified retrospective basis with a cumulative effect adjustment at the date of the initial application. We plan to adopt the standard retrospectively with a cumulative effect adjustment. 

We are continuing to assess all potential impacts of the standard across all of our business segments and believe that the most significant impact will be in our Software Solutions segment related to the timing of software licenses and certain other ancillary revenue streams. In addition, we currently capitalize certain costs associated with the acquisition of new customers and recognize these costs over their expected revenue stream of eight years.  Under the new standard, these costs will be expensed as incurred.  Also, we are continuing to review our sales commission plans to determine which payments may be capitalized. We plan to use the practical expedient that allows companies to expense costs to obtain a contract when the estimated amortization period is less than one year. 

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated Statements

Revenue and EBIT by business segment is presented below:

	Revenue
	Three Months Ended March 31,
	2017		2016
North America Mailing	$	355,578	$	371,453
International Mailing	93,058		104,986
Small & Medium Business Solutions	448,636		476,439
Production Mail	88,955		87,425
Presort Services	132,677		127,396
Enterprise Business Solutions	221,632		214,821
Software Solutions	78,220		77,922
Global Ecommerce	88,152		75,407
Digital Commerce Solutions	166,372		153,329
Total revenue	$	836,640	$	844,589

Reconciliation of EBIT from Segments to Consolidated

	EBIT
	Three Months Ended March 31,
	2017			2016
North America Mailing	$	141,008		$	160,831
International Mailing	13,269			11,176
Small & Medium Business Solutions	154,277			172,007
Production Mail	8,964			6,824
Presort Services	30,717			28,910
Enterprise Business Solutions	39,681			35,734
Software Solutions	2,749			(2,572		)
Global Ecommerce	(4,270		)	(3,469		)
Digital Commerce Solutions	(1,521		)	(6,041		)
Total segment EBIT	192,437			201,700
Reconciling items:
Interest, net	(38,650		)	(34,216		)
Unallocated corporate expenses	(55,156		)	(57,767		)
Restructuring charges and asset impairments, net	(2,082		)	(6,933		)
Acquisition and disposition-related expenses	—			(3,120		)
Income before income taxes	96,549			99,664
Provision for income taxes	31,416			37,024
Net income	$	65,133		$	62,640

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

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

	Three Months Ended March 31,
	2017		2016
Numerator:
Amounts attributable to common stockholders:
Net income attributable to Pitney Bowes Inc. (numerator for diluted EPS)	$	65,133	$	58,046
Less: Preference stock dividend	9		10
Income attributable to common stockholders (numerator for basic EPS)	$	65,124	$	58,036
Denominator:
Weighted-average shares used in basic EPS	185,982		192,241
Effect of dilutive shares:
Conversion of Preferred stock and Preference stock	293		304
Employee stock plans	600		636
Weighted-average shares used in diluted EPS	186,875		193,181
Basic earnings per share	$	0.35	$	0.30
Diluted earnings per share	$	0.35	$	0.30
Anti-dilutive shares not used in calculating diluted weighted-average shares	11,176		8,870

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Inventories (Tables)

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventory Components

Inventories at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017			December 31, 2016
Raw materials	$	35,499		$	28,541
Work in process	5,994			6,498
Supplies and service parts	49,729			45,152
Finished products	36,559			24,678
Inventory at FIFO cost	127,781			104,869
Excess of FIFO cost over LIFO cost	(12,143		)	(12,143		)
Total inventory, net	$	115,638		$	92,726

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Finance Assets (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Financing Receivables

Finance receivables at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017									December 31, 2016
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,073,533		$	266,437		$	1,339,970		$	1,088,053		$	273,262		$	1,361,315
Unguaranteed residual values	89,292			13,543			102,835			90,190			13,655			103,845
Unearned income	(220,515		)	(61,056		)	(281,571		)	(223,908		)	(60,458		)	(284,366		)
Allowance for credit losses	(8,816		)	(2,569		)	(11,385		)	(8,247		)	(2,647		)	(10,894		)
Net investment in sales-type lease receivables	933,494			216,355			1,149,849			946,088			223,812			1,169,900
Loan receivables
Loan receivables	342,037			34,579			376,616			374,147			32,716			406,863
Allowance for credit losses	(7,369		)	(1,076		)	(8,445		)	(8,517		)	(1,089		)	(9,606		)
Net investment in loan receivables	334,668			33,503			368,171			365,630			31,627			397,257
Net investment in finance receivables	$	1,268,162		$	249,858		$	1,518,020		$	1,311,718		$	255,439		$	1,567,157

Allowance for Credit Losses on Financing Receivables

Activity in the allowance for credit losses for the three months ended March 31, 2017 and 2016 was as follows:

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2017	$	8,247		$	2,647		$	8,517		$	1,089		$	20,500
Amounts charged to expense	1,758			178			639			144			2,719
Write-offs and other	(1,189		)	(256		)	(1,787		)	(157		)	(3,389		)
Balance at March 31, 2017	$	8,816		$	2,569		$	7,369		$	1,076		$	19,830
	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2016	$	6,606		$	3,542		$	10,024		$	1,518		$	21,690
Amounts charged to expense	995			50			1,300			157			2,502
Write-offs and other	(1,705		)	(495		)	(2,138		)	(123		)	(4,461		)
Balance at March 31, 2016	$	5,896		$	3,097		$	9,186		$	1,552		$	19,731

Past Due Financing Receivables

The aging of gross finance receivables at March 31, 2017 and December 31, 2016 was as follows:

	March 31, 2017
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,004,804	$	262,172	$	333,362	$	34,251	$	1,634,589
> 90 days	68,729		4,265		8,675		328		81,997
Total	$	1,073,533	$	266,437	$	342,037	$	34,579	$	1,716,586
Past due amounts > 90 days
Still accruing interest	$	12,104	$	1,192	$	—	$	—	$	13,296
Not accruing interest	56,625		3,073		8,675		328		68,701
Total	$	68,729	$	4,265	$	8,675	$	328	$	81,997

As of March 31, 2017, we had North America sales-type lease receivables aged greater than 90 days with a contract value of $69 million. As of April 28, 2017, we received payments with a contract value of approximately $26 million related to these receivables.

	December 31, 2016
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,025,313	$	269,247	$	366,726	$	32,420	$	1,693,706
> 90 days	62,740		4,015		7,421		296		74,472
Total	$	1,088,053	$	273,262	$	374,147	$	32,716	$	1,768,178
Past due amounts > 90 days
Still accruing interest	$	8,831	$	972	$	—	$	—	$	9,803
Not accruing interest	53,909		3,043		7,421		296		64,669
Total	$	62,740	$	4,015	$	7,421	$	296	$	74,472

Financing Receivable Credit Quality Indicators

	March 31, 2017		December 31, 2016
Sales-type lease receivables
Low	$	865,202	$	879,823
Medium	137,624		135,953
High	22,202		22,600
Not Scored	48,505		49,677
Total	$	1,073,533	$	1,088,053
Loan receivables
Low	$	265,626	$	296,598
Medium	54,164		53,647
High	6,078		7,216
Not Scored	16,169		16,686
Total	$	342,037	$	374,147

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure

Intangible assets at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	447,830	$	(308,756	)	$	139,074	$	445,039	$	(300,906	)	$	144,133
Software & technology	150,748		(137,693		)	13,055		150,037		(136,508		)	13,529
Trademarks & other	36,372		(29,301		)	7,071		36,212		(28,702		)	7,510
Total intangible assets	$	634,950	$	(475,750	)	$	159,200	$	631,288	$	(466,116	)	$	165,172

Amortization Expense In Future Periods

Future amortization expense as of March 31, 2017 was as follows:

Remaining for year ending December 31, 2017	$	21,768
Year ending December 31, 2018	27,455
Year ending December 31, 2019	24,079
Year ending December 31, 2020	18,904
Year ending December 31, 2021	15,301
Thereafter	51,693
Total	$	159,200

Schedule of Goodwill

Changes in the carrying value of goodwill, by reporting segment, for the three months ended March 31, 2017 are shown in the table below. Prior year amounts have been recast for the change in reportable segments.

	December 31, 2016		Acquisitions		Foreign currency translation		March 31, 2017
North America Mailing	$	354,000	$	—	$	1,402	$	355,402
International Mailing	145,566		—		1,587		147,153
Small & Medium Business Solutions	499,566		—		2,989		502,555
Production Mail	101,099		—		766		101,865
Presort Services	196,890		6,229		—		203,119
Enterprise Business Solutions	297,989		6,229		766		304,984
Software Solutions	501,591		—		1,983		503,574
Global Ecommerce	272,189		—		—		272,189
Digital Commerce Solutions	773,780		—		1,983		775,763
Total goodwill	$	1,571,335	$	6,229	$	5,738	$	1,583,302

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Fair Value Measurements and Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

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

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 its placement within the fair value hierarchy. 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 March 31, 2017 and December 31, 2016.

	March 31, 2017
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	121,807	$	255,169		$	—	$	376,976
Equity securities	—		23,432			—		23,432
Commingled fixed income securities	1,543		21,598			—		23,141
Debt securities - U.S. and foreign governments, agencies and municipalities	111,144		22,126			—		133,270
Debt securities - corporate	—		71,093			—		71,093
Mortgage-backed / asset-backed securities	—		158,681			—		158,681
Derivatives
Interest rate swap	—		2,056			—		2,056
Foreign exchange contracts	—		889			—		889
Total assets	$	234,494	$	555,044		$	—	$	789,538
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(263	)	$	—	$	(263	)
Total liabilities	$	—	$	(263	)	$	—	$	(263	)

	December 31, 2016
	Level 1		Level 2			Level 3		Total
Assets:
Investment securities
Money market funds / commercial paper	$	114,471	$	217,175		$	—	$	331,646
Equity securities	—		24,571			—		24,571
Commingled fixed income securities	1,536		22,132			—		23,668
Debt securities - U.S. and foreign governments, agencies and municipalities	116,822		19,358			—		136,180
Debt securities - corporate	—		69,891			—		69,891
Mortgage-backed / asset-backed securities	—		158,996			—		158,996
Derivatives
Interest rate swap	—		1,588			—		1,588
Foreign exchange contracts	—		637			—		637
Total assets	$	232,829	$	514,348		$	—	$	747,177
Liabilities:
Derivatives
Foreign exchange contracts	$	—	$	(3,717	)	$	—	$	(3,717	)
Total liabilities	$	—	$	(3,717	)	$	—	$	(3,717	)

Schedule of Available-for-sale Securities Reconciliation

Available-for-sale securities at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	125,151	$	1,694	$	(1,473	)	$	125,372
Corporate notes and bonds	70,302		1,312		(521		)	71,093
Commingled fixed income securities	1,576		—		(33		)	1,543
Mortgage-backed / asset-backed securities	158,718		1,583		(1,620		)	158,681
Total	$	355,747	$	4,589	$	(3,647	)	$	356,689

	December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
U.S. and foreign governments, agencies and municipalities	$	136,316	$	1,571	$	(1,707	)	$	136,180
Corporate notes and bonds	69,376		1,180		(665		)	69,891
Commingled fixed income securities	1,568		—		(32		)	1,536
Mortgage-backed / asset-backed securities	159,312		1,566		(1,882		)	158,996
Total	$	366,572	$	4,317	$	(4,286	)	$	366,603

Available-for-sale Securities

Scheduled maturities of available-for-sale securities at March 31, 2017 were as follows:

	Amortized cost		Estimated fair value
Within 1 year	$	29,886	$	29,936
After 1 year through 5 years	106,796		107,300
After 5 years through 10 years	63,107		63,339
After 10 years	155,958		156,114
Total	$	355,747	$	356,689

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

The fair value of derivative instruments at March 31, 2017 and December 31, 2016 was as follows:

Designation of Derivatives	Balance Sheet Location	March 31, 2017			December 31, 2016
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	$	353		$	487
	Accounts payable and accrued liabilities	(35		)	(136		)
Interest Rate Swap	Other assets	2,056			1,588
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets and prepayments	536			150
	Accounts payable and accrued liabilities	(228		)	(3,581		)
	Total derivative assets	$	2,945		$	2,225
	Total derivative liabilities	(263		)	(3,717		)
	Total net derivative asset (liabilities)	$	2,682		$	(1,492	)

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

The following represents the results of cash flow hedging relationships for the three months ended March 31,2017 and 2016:

	Three Months Ended March 31,
	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	2017		2016				2017			2016
Foreign exchange contracts	$	50	$	(393	)	Revenue	$	(28	)	(380		)
						Cost of sales	111			225
Interest rate swap	468		—			Interest Expense	—			—
	$	518	$	(393	)		$	83		$	(155	)

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

The following represents the results of our non-designated derivative instruments for the three months ended March 31,2017 and 2016:

		Three Months Ended March 31,
		Derivative Gain (Loss) Recognized in Earnings
Derivatives Instrument	Location of Derivative Gain (Loss)	2017			2016
Foreign exchange contracts	Selling, general and administrative expense	$	(1,849	)	$	(5,977	)

Fair Value, by Balance Sheet Grouping

The carrying value and estimated fair value of our debt at March 31, 2017 and December 31, 2016 were as follows:

	March 31, 2017		December 31, 2016
Carrying value	$	3,284,312	$	3,364,890
Fair value	$	3,341,434	$	3,412,581

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Restructuring Charges (Tables)

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

Activity in our restructuring reserves for the three months ended March 31, 2017 and 2016 was as follows:

	Severance and benefits costs			Other exit costs			Total
Balance at January 1, 2017	$	28,376		$	281		$	28,657
Expenses, net	1,419			67			1,486
Cash payments	(12,294		)	(122		)	(12,416		)
Balance at March 31, 2017	$	17,501		$	226		$	17,727
Balance at January 1, 2016	$	43,700		$	3,722		$	47,422
Expenses, net	4,590			1,060			5,650
Cash payments	(19,956		)	(1,700		)	(21,656		)
Balance at March 31, 2016	$	28,334		$	3,082		$	31,416

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Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Schedule of Debt

Total debt at March 31, 2017 and December 31, 2016 consisted of the following:

	Interest rate	March 31, 2017		December 31, 2016
Notes due September 2017	5.75%	$	385,109	$	385,109
Notes due March 2018	5.6%	250,000		250,000
Notes due May 2018	4.75%	350,000		350,000
Notes due March 2019	6.25%	300,000		300,000
Notes due October 2021	3.375%	600,000		600,000
Notes due March 2024	4.625%	500,000		500,000
Notes due January 2037	5.25%	35,841		115,041
Notes due March 2043	6.7%	425,000		425,000
Term loans	Variable	450,000		450,000
Other debt		5,584		5,677
Principal amount		3,301,534		3,380,827
Less: unamortized debt discount and issuance costs		27,600		28,796
Plus: unamortized interest rate swap proceeds		10,378		12,859
Total debt		3,284,312		3,364,890
Less: current portion long-term debt		785,287		614,485
Long-term debt		$	2,499,025	$	2,750,405

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Pensions and Other Benefit Programs (Tables)

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

The components of net periodic benefit cost (income) were as follows:

	Defined Benefit Pension Plans												Nonpension Postretirement Benefit Plans
	United States						Foreign
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31,						March 31,						March 31,
	2017			2016			2017			2016			2017		2016
Service cost	$	30		$	32		$	542		$	527		$	419	$	501
Interest cost	17,244			18,830			4,544			5,661			1,771		2,136
Expected return on plan assets	(24,548		)	(25,589		)	(7,780		)	(8,472		)	—		—
Amortization of transition credit	—			—			(2		)	(2		)	—		—
Amortization of prior service (credit) cost	(15		)	(15		)	(18		)	(17		)	74		74
Amortization of net actuarial loss	7,268			6,706			2,034			1,343			884		1,360
Settlement (1)	—			1,098			—			—			—		—
Net periodic benefit cost (income)	$	(21	)	$	1,062		$	(680	)	$	(960	)	$	3,148	$	4,071

(1) Included in restructuring charges and asset impairments, net in the Condensed Consolidated Statements of Income.

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Stockholders' (Deficit) Equity (Tables)

3 Months Ended

Mar. 31, 2017

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

Changes in stockholders’ (deficit) equity for the three months ended March 31, 2017 and 2016 were as follows:

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total deficit
Balance at January 1, 2017	$	1	$	483		$	323,338	$	148,125		$	5,107,734		$	(940,133	)	$	(4,743,208	)	$	(103,660	)
Net income	—		—			—		—			65,133			—			—			65,133
Other comprehensive income	—		—			—		—			—			26,302			—			26,302
Dividends paid	—		—			—		—			(34,567		)	—			—			(34,567		)
Issuance of common stock	—		—			—		(27,098		)	—			—			21,914			(5,184		)
Conversion to common stock	—		(5		)	—		(101		)	—			—			106			—
Stock-based compensation expense	—		—			—		5,638			—			—			—			5,638
Balance at March 31, 2017	$	1	$	478		$	323,338	$	126,564		$	5,138,300		$	(913,831	)	$	(4,721,188	)	$	(46,338	)

	Preferred stock		Preference stock			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total equity
Balance at January 1, 2016	$	1	$	505		$	323,338	$	161,280		$	5,155,537		$	(888,635	)	$	(4,573,305	)	$	178,721
Net income	—		—			—		—			58,046			—			—			58,046
Other comprehensive loss	—		—			—		—			—			48,793			—			48,793
Dividends paid	—		—			—		—			(36,010		)	—			—			(36,010		)
Issuance of common stock	—		—			—		(21,555		)	—			—			17,421			(4,134		)
Conversion to common stock	—		(13		)	—		(273		)	—			—			286			—
Stock-based compensation expense	—		—			—		6,303			—			—			—			6,303
Repurchase of common stock	—		—			—		—			—			—			(128,451		)	(128,451		)
Balance at March 31, 2016	$	1	$	492		$	323,338	$	145,755		$	5,177,573		$	(839,842	)	$	(4,684,049	)	$	123,268

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of AOCI for the three months ended March 31,2017 and 2016 were as follows:

	Amount Reclassified from AOCI (a)
	Three Months Ended March 31,
	2017			2016
Gains (losses) on cash flow hedges
Revenue	$	28		$	(380	)
Cost of sales	(111		)	225
Interest expense, net	(507		)	(507		)
Total before tax	(590		)	(662		)
Benefit for income tax	(230		)	(258		)
Net of tax	$	(360	)	$	(404	)
Gains (losses) on available for sale securities
Interest expense, net	$	(109	)	$	18
(Benefit) provision for income tax	(40		)	7
Net of tax	$	(69	)	$	11
Pension and Postretirement Benefit Plans (b)
Transition credit	$	2		$	2
Prior service costs	(41		)	(42		)
Actuarial losses	(10,186		)	(9,409		)
Settlements	—			(1,098		)
Total before tax	(10,225		)	(10,547		)
Benefit from income tax	(3,517		)	(3,799		)
Net of tax	$	(6,708	)	$	(6,748	)

(a)     Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss).

(b) Reclassified from accumulated other comprehensive loss into selling, general and administrative expenses. These amounts are included in the computation of net periodic costs (see Note 10 for additional details).

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in AOCI for the three months ended March 31, 2017 and 2016 were as follows:

	Cash flow hedges			Available for sale securities		Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2017	$	(1,485	)	$	120	$	(787,813	)	$	(150,955	)	$	(940,133	)
Other comprehensive income (loss) before reclassifications (a)	216			516		(1,482		)	19,915			19,165
Reclassifications into earnings (a), (b)	360			69		6,708			—			7,137
Net other comprehensive income	576			585		5,226			19,915			26,302
Balance at March 31, 2017	$	(909	)	$	705	$	(782,587	)	$	(131,040	)	$	(913,831	)

	Cash flow hedges			Available for sale securities			Pension and postretirement benefit plans			Foreign currency adjustments			Total
Balance at January 1, 2016	$	(3,912	)	$	536		$	(738,768	)	$	(146,491	)	$	(888,635	)
Other comprehensive (loss) income before reclassifications (a)	(432		)	3,465			(1,230		)	39,849			41,652
Reclassifications into earnings (a), (b)	404			(11		)	6,748			—			7,141
Net other comprehensive (loss) income	(28		)	3,454			5,518			39,849			48,793
Balance at March 31, 2016	$	(3,940	)	$	3,990		$	(733,250	)	$	(106,642	)	$	(839,842	)

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

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

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Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Reduction to cash and cash equivalents	$ (739,553)	$ (602,232)	$ (764,522)	$ (640,190)
Increase (decrease) in net cash provided by operating activities	154,006	63,493
Increase (decrease) in net cash used in financing activities	$ (119,503)	(60,825)
Capitalization period	8 years
Accounting Standards Update 2016-09
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase (decrease) in net cash provided by operating activities		5,000
Increase (decrease) in net cash used in financing activities		(5,000)
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Reduction to cash and cash equivalents		$ 11,000		$ 10,000

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment reporting information profit (loss)
Revenues	$ 836,640	$ 844,589
Reconciling items:
Interest, net	(38,650)	(34,216)
Unallocated corporate expenses	(55,156)	(57,767)
Restructuring charges and asset impairments, net	(2,082)	(6,933)
Acquisition and disposition-related expenses	0	(3,120)
Income before income taxes	96,549	99,664
Provision for income taxes	31,416	37,024
Net income	65,133	62,640
North America Mailing
Segment reporting information profit (loss)
Revenues	355,578	371,453
International Mailing
Segment reporting information profit (loss)
Revenues	93,058	104,986
Small & Medium Business Solutions
Segment reporting information profit (loss)
Revenues	448,636	476,439
Production Mail
Segment reporting information profit (loss)
Revenues	88,955	87,425
Presort Services
Segment reporting information profit (loss)
Revenues	132,677	127,396
Enterprise Business Solutions
Segment reporting information profit (loss)
Revenues	221,632	214,821
Software Solutions
Segment reporting information profit (loss)
Revenues	78,220	77,922
Global Ecommerce
Segment reporting information profit (loss)
Revenues	88,152	75,407
Digital Commerce Solutions
Segment reporting information profit (loss)
Revenues	166,372	153,329
Operating Segments
Segment reporting information profit (loss)
EBIT	192,437	201,700
Operating Segments | North America Mailing
Segment reporting information profit (loss)
EBIT	141,008	160,831
Operating Segments | International Mailing
Segment reporting information profit (loss)
EBIT	13,269	11,176
Operating Segments | Small & Medium Business Solutions
Segment reporting information profit (loss)
EBIT	154,277	172,007
Operating Segments | Production Mail
Segment reporting information profit (loss)
EBIT	8,964	6,824
Operating Segments | Presort Services
Segment reporting information profit (loss)
EBIT	30,717	28,910
Operating Segments | Enterprise Business Solutions
Segment reporting information profit (loss)
EBIT	39,681	35,734
Operating Segments | Software Solutions
Segment reporting information profit (loss)
EBIT	2,749	(2,572)
Operating Segments | Global Ecommerce
Segment reporting information profit (loss)
EBIT	(4,270)	(3,469)
Operating Segments | Digital Commerce Solutions
Segment reporting information profit (loss)
EBIT	$ (1,521)	$ (6,041)

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Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Amounts attributable to common stockholders:
Net income attributable to Pitney Bowes Inc. (numerator for diluted EPS)	$ 65,133	$ 58,046
Less: Preference stock dividend	9	10
Income attributable to common stockholders (numerator for basic EPS)	$ 65,124	$ 58,036
Denominator:
Weighted-average shares used in basic EPS (in shares)	185,982	192,241
Effect of dilutive shares:
Conversion of Preferred stock and Preference stock (in shares)	293	304
Employee stock plans (in shares)	600	636
Weighted-average shares used in diluted EPS (in shares)	186,875	193,181
Basic (in dollars per share)	$ 0.35	$ 0.30
Diluted (in dollars per share)	$ 0.35	$ 0.30
Anti-dilutive shares not used in calculating diluted weighted-average shares (in shares)	11,176	8,870

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 35,499	$ 28,541
Work in process	5,994	6,498
Supplies and service parts	49,729	45,152
Finished products	36,559	24,678
Inventory at FIFO cost	127,781	104,869
Excess of FIFO cost over LIFO cost	(12,143)	(12,143)
Total inventory, net	$ 115,638	$ 92,726

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Finance Assets (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 30, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Loan receivables
Net investment in finance receivables		$ 1,518,020		$ 1,567,157
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning		20,500	$ 21,690
Amounts charged to expense		2,719	2,502
Write-offs and other		(3,389)	(4,461)
Balance Closing		19,830	19,731
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		$ 1,716,586		1,768,178
Revenue recognition resume period (less than)		60 days
Low
Financing Receivable, Recorded Investment, Aging [Abstract]
Approximate percentage of portfolio		30.00%
Medium
Financing Receivable, Recorded Investment, Aging [Abstract]
Approximate percentage of portfolio		40.00%
High
Financing Receivable, Recorded Investment, Aging [Abstract]
Approximate percentage of portfolio		30.00%
North America
Loan receivables
Net investment in finance receivables		$ 1,268,162		1,311,718
International
Loan receivables
Net investment in finance receivables		249,858		255,439
Sales-type lease receivables
Sales-type lease receivables
Gross finance receivables		1,339,970		1,361,315
Unguaranteed residual values		102,835		103,845
Unearned income		(281,571)		(284,366)
Allowance for credit losses		(11,385)		(10,894)
Net investment in sales-type lease receivables		$ 1,149,849		1,169,900
Financing Receivable, Recorded Investment, Aging [Abstract]
Revenue recognition discontinuation period (more than)		120 days
Sales-type lease receivables | North America
Sales-type lease receivables
Gross finance receivables		$ 1,073,533		1,088,053
Unguaranteed residual values		89,292		90,190
Unearned income		(220,515)		(223,908)
Allowance for credit losses		(8,816)		(8,247)
Net investment in sales-type lease receivables		933,494		946,088
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning		8,247	6,606
Amounts charged to expense		1,758	995
Write-offs and other		(1,189)	(1,705)
Balance Closing		8,816	5,896
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		1,073,533		1,088,053
Sales-type lease receivables | North America | Low
Sales-type lease receivables
Gross finance receivables		865,202		879,823
Sales-type lease receivables | North America | Medium
Sales-type lease receivables
Gross finance receivables		137,624		135,953
Sales-type lease receivables | North America | High
Sales-type lease receivables
Gross finance receivables		22,202		22,600
Sales-type lease receivables | North America | Not Scored
Sales-type lease receivables
Gross finance receivables		48,505		49,677
Sales-type lease receivables | International
Sales-type lease receivables
Gross finance receivables		266,437		273,262
Unguaranteed residual values		13,543		13,655
Unearned income		(61,056)		(60,458)
Allowance for credit losses		(2,569)		(2,647)
Net investment in sales-type lease receivables		216,355		223,812
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning		2,647	3,542
Amounts charged to expense		178	50
Write-offs and other		(256)	(495)
Balance Closing		2,569	3,097
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		266,437		273,262
Loan receivables
Loan receivables
Loan receivables		376,616		406,863
Allowance for credit losses		(8,445)		(9,606)
Net investment in loan receivables		$ 368,171		397,257
Financing Receivable, Recorded Investment, Aging [Abstract]
Revenue recognition discontinuation period (more than)		90 days
Loan receivables | North America
Loan receivables
Loan receivables		$ 342,037		374,147
Allowance for credit losses		(7,369)		(8,517)
Net investment in loan receivables		334,668		365,630
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning		8,517	10,024
Amounts charged to expense		639	1,300
Write-offs and other		(1,787)	(2,138)
Balance Closing		7,369	9,186
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		342,037		374,147
Loan receivables | North America | Low
Loan receivables
Loan receivables		265,626		296,598
Loan receivables | North America | Medium
Loan receivables
Loan receivables		54,164		53,647
Loan receivables | North America | High
Loan receivables
Loan receivables		6,078		7,216
Loan receivables | North America | Not Scored
Loan receivables
Loan receivables		16,169		16,686
Loan receivables | International
Loan receivables
Loan receivables		34,579		32,716
Allowance for credit losses		(1,076)		(1,089)
Net investment in loan receivables		33,503		31,627
Allowance for Loan and Lease Losses [Roll Forward]
Balance Beginning		1,089	1,518
Amounts charged to expense		144	157
Write-offs and other		(157)	(123)
Balance Closing		1,076	$ 1,552
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		34,579		32,716
1 - 90 days
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables, current		1,634,589		1,693,706
1 - 90 days | Sales-type lease receivables | North America
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables, current		1,004,804		1,025,313
1 - 90 days | Sales-type lease receivables | International
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables, current		262,172		269,247
1 - 90 days | Loan receivables | North America
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables, current		333,362		366,726
1 - 90 days | Loan receivables | International
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables, current		34,251		32,420
Greater than 90 days
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		81,997		74,472
Still accruing interest		13,296		9,803
Not accruing interest		68,701		64,669
Greater than 90 days | Sales-type lease receivables | North America
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		68,729		62,740
Still accruing interest		12,104		8,831
Not accruing interest		56,625		53,909
Greater than 90 days | Sales-type lease receivables | International
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		4,265		4,015
Still accruing interest		1,192		972
Not accruing interest		3,073		3,043
Greater than 90 days | Loan receivables | North America
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		8,675		7,421
Still accruing interest		0		0
Not accruing interest		8,675		7,421
Greater than 90 days | Loan receivables | International
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing receivables		328		296
Still accruing interest		0		0
Not accruing interest		$ 328		$ 296
Subsequent Event | Sales-type lease receivables | North America
Financing Receivable, Recorded Investment, Aging [Abstract]
Payment contract value	$ 26,000
Minimum
Finance Leases And Loans Receivables [Line Items]
Lease period		3 years
Maximum
Finance Leases And Loans Receivables [Line Items]
Lease period		5 years

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Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite lived intangible assets
Gross Carrying Amount	$ 634,950		$ 631,288
Accumulated Amortization	(475,750)		(466,116)
Net Carrying Amount	159,200		165,172
Amortization expense	8,000	$ 11,000
Customer relationships
Finite lived intangible assets
Gross Carrying Amount	447,830		445,039
Accumulated Amortization	(308,756)		(300,906)
Net Carrying Amount	139,074		144,133
Software & technology
Finite lived intangible assets
Gross Carrying Amount	150,748		150,037
Accumulated Amortization	(137,693)		(136,508)
Net Carrying Amount	13,055		13,529
Trademarks & other
Finite lived intangible assets
Gross Carrying Amount	36,372		36,212
Accumulated Amortization	(29,301)		(28,702)
Net Carrying Amount	$ 7,071		$ 7,510

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Intangible Assets and Goodwill (Future Amortization Expense) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite lived intangible assets future amortization expense
Remaining for year ending December 31, 2017	$ 21,768
Year ending December 31, 2018	27,455
Year ending December 31, 2019	24,079
Year ending December 31, 2020	18,904
Year ending December 31, 2021	15,301
Thereafter	51,693
Net Carrying Amount	$ 159,200	$ 165,172

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Intangible Assets and Goodwill (Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill	$ 1,571,335
Acquisitions	6,229
Foreign currency translation	5,738
Goodwill	1,583,302
North America Mailing
Goodwill [Roll Forward]
Goodwill	354,000
Acquisitions	0
Foreign currency translation	1,402
Goodwill	355,402
International Mailing
Goodwill [Roll Forward]
Goodwill	145,566
Acquisitions	0
Foreign currency translation	1,587
Goodwill	147,153
Small & Medium Business Solutions
Goodwill [Roll Forward]
Goodwill	499,566
Acquisitions	0
Foreign currency translation	2,989
Goodwill	502,555
Production Mail
Goodwill [Roll Forward]
Goodwill	101,099
Acquisitions	0
Foreign currency translation	766
Goodwill	101,865
Presort Services
Goodwill [Roll Forward]
Goodwill	196,890
Acquisitions	6,229
Foreign currency translation	0
Goodwill	203,119
Enterprise Business Solutions
Goodwill [Roll Forward]
Goodwill	297,989
Acquisitions	6,229
Foreign currency translation	766
Goodwill	304,984
Software Solutions
Goodwill [Roll Forward]
Goodwill	501,591
Acquisitions	0
Foreign currency translation	1,983
Goodwill	503,574
Global Ecommerce
Goodwill [Roll Forward]
Goodwill	272,189
Acquisitions	0
Foreign currency translation	0
Goodwill	272,189
Digital Commerce Solutions
Goodwill [Roll Forward]
Goodwill	773,780
Acquisitions	0
Foreign currency translation	1,983
Goodwill	$ 775,763

XML

Fair Value Measurements and Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	$ 789,538	$ 747,177
Liabilities:	(263)	(3,717)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	234,494	232,829
Liabilities:	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	555,044	514,348
Liabilities:	(263)	(3,717)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Liabilities:	0	0
Money market funds / commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	376,976	331,646
Money market funds / commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	121,807	114,471
Money market funds / commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	255,169	217,175
Money market funds / commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	23,432	24,571
Equity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Equity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	23,432	24,571
Equity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Commingled fixed income securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	23,141	23,668
Commingled fixed income securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	1,543	1,536
Commingled fixed income securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	21,598	22,132
Commingled fixed income securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Debt securities - U.S. and foreign governments, agencies and municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	133,270	136,180
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:	111,144	116,822
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:	22,126	19,358
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	0
Debt securities - corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	71,093	69,891
Debt securities - corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Debt securities - corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	71,093	69,891
Debt securities - corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Mortgage-backed / asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	158,681	158,996
Mortgage-backed / asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Mortgage-backed / asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	158,681	158,996
Mortgage-backed / asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	2,056	1,588
Interest rate swap | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	2,056	1,588
Interest rate swap | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	889	637
Liabilities:	(263)	(3,717)
Foreign exchange contracts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Liabilities:	0	0
Foreign exchange contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	889	637
Liabilities:	(263)	(3,717)
Foreign exchange contracts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets:	0	0
Liabilities:	$ 0	$ 0

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Fair Value Measurements and Derivative Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	$ 355,747	$ 366,572
Gross unrealized gains	4,589	4,317
Gross unrealized losses	(3,647)	(4,286)
Estimated fair value	356,689	366,603
U.S. and foreign governments, agencies and municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	125,151	136,316
Gross unrealized gains	1,694	1,571
Gross unrealized losses	(1,473)	(1,707)
Estimated fair value	125,372	136,180
Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	70,302	69,376
Gross unrealized gains	1,312	1,180
Gross unrealized losses	(521)	(665)
Estimated fair value	71,093	69,891
Commingled fixed income securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	1,576	1,568
Gross unrealized gains	0	0
Gross unrealized losses	(33)	(32)
Estimated fair value	1,543	1,536
Mortgage-backed / asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	158,718	159,312
Gross unrealized gains	1,583	1,566
Gross unrealized losses	(1,620)	(1,882)
Estimated fair value	$ 158,681	$ 158,996

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Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Investment securities at a loss position for more than 12 months, aggregate unrealized holding losses (less than)	$ 1,000,000	$ 1,000,000
Investment securities at a loss position for more than 12 months, estimated fair value	7,000,000	12,000,000
Investment securities at a loss position for less than 12 months, aggregate unrealized holding losses (less than)	3,000,000	4,000,000
Investment securities at a loss position for less than 12 months, estimated fair value	166,000,000	171,000,000
Foreign exchange contracts
Derivative [Line Items]
Derivative notional amount	12,000,000	$ 13,000,000
Term Loan | Notes due December 2020
Derivative [Line Items]
Loan amount	300,000,000
Cash Flow Hedge | Interest rate swaps
Derivative [Line Items]
Derivative notional amount	$ 300,000,000
Fixed interest rate	0.8826%

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Fair Value Measurements and Derivative Instruments (Available-for-sale Securities Maturities) (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Fair Value Disclosures [Abstract]
Amortized cost - Within 1 year	$ 29,886
Amortized cost - After 1 year through 5 years	106,796
Amortized cost - After 5 years through 10 years	63,107
Amortized cost - After 10 years	155,958
Amortized cost - Total	355,747
Estimated fair value - Within 1 year	29,936
Estimated fair value - After 1 year through 5 years	107,300
Estimated fair value - After 5 years through 10 years	63,339
Estimated fair value - After 10 years	156,114
Estimated fair value - Total	$ 356,689

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Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Total net derivative asset (liabilities)	$ 2,682	$ (1,492)
Total derivative assets
Derivative [Line Items]
Total net derivative asset (liabilities)	2,945	2,225
Total derivative liabilities
Derivative [Line Items]
Total net derivative asset (liabilities)	(263)	(3,717)
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets and prepayments
Derivative [Line Items]
Total net derivative asset (liabilities)	353	487
Foreign exchange contracts | Derivatives designated as hedging instruments | Accounts payable and accrued liabilities
Derivative [Line Items]
Total net derivative asset (liabilities)	(35)	(136)
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets and prepayments
Derivative [Line Items]
Total net derivative asset (liabilities)	536	150
Foreign exchange contracts | Derivatives not designated as hedging instruments | Accounts payable and accrued liabilities
Derivative [Line Items]
Total net derivative asset (liabilities)	(228)	(3,581)
Interest rate swap | Derivatives designated as hedging instruments | Other current assets and prepayments
Derivative [Line Items]
Total net derivative asset (liabilities)	$ 2,056	$ 1,588

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Fair Value Measurements and Derivative Instruments (Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
Derivative Gain (Loss) Recognized in AOCI (Effective Portion)	$ 518	$ (393)
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)	83	(155)
Revenue
Derivative [Line Items]
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)	(28)	(380)
Cost of sales
Derivative [Line Items]
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)	111	225
Interest Expense
Derivative [Line Items]
Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)	0	0
Foreign exchange contracts
Derivative [Line Items]
Derivative Gain (Loss) Recognized in AOCI (Effective Portion)	50	(393)
Foreign exchange contracts | Selling, general and administrative expense
Derivative [Line Items]
Derivative Gain (Loss) Recognized in Earnings	(1,849)	(5,977)
Interest rate swap
Derivative [Line Items]
Derivative Gain (Loss) Recognized in AOCI (Effective Portion)	$ 468	$ 0

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Fair Value Measurements and Derivative Instruments (Fair Value of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	$ 3,284,312	$ 3,364,890
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	$ 3,341,434	$ 3,412,581

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Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restructuring Costs [Abstract]
Cash payments	$ (12,416)	$ (21,656)
Restructuring reserve, expected international payment period, extend beyond	24 months
Operational Excellence
Restructuring Costs [Abstract]
Balance Beginning	$ 28,657	47,422
Expenses, net	1,486	5,650
Cash payments	(12,416)	(21,656)
Balance Ending	17,727	31,416
Operational Excellence | Severance and benefits costs
Restructuring Costs [Abstract]
Balance Beginning	28,376	43,700
Expenses, net	1,419	4,590
Cash payments	(12,294)	(19,956)
Balance Ending	17,501	28,334
Operational Excellence | Other exit costs
Restructuring Costs [Abstract]
Balance Beginning	281	3,722
Expenses, net	67	1,060
Cash payments	(122)	(1,700)
Balance Ending	$ 226	$ 3,082
Minimum
Restructuring Costs [Abstract]
Restructuring reserve, expected payment period	12 months
Maximum
Restructuring Costs [Abstract]
Restructuring reserve, expected payment period	24 months

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Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jan. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt	$ 3,301,534		$ 3,380,827
Less: unamortized debt discount and issuance costs	27,600		28,796
Plus: unamortized interest rate swap proceeds	10,378		12,859
Total debt	3,284,312		3,364,890
Less: current portion long-term debt	785,287		614,485
Long-term debt	$ 2,499,025		2,750,405
Notes due September 2017
Debt Instrument [Line Items]
Interest rate	5.75%
Debt	$ 385,109		385,109
Notes due March 2018
Debt Instrument [Line Items]
Interest rate	5.60%
Debt	$ 250,000		250,000
Notes due May 2018
Debt Instrument [Line Items]
Interest rate	4.75%
Debt	$ 350,000		350,000
Notes due March 2019
Debt Instrument [Line Items]
Interest rate	6.25%
Debt	$ 300,000		300,000
Notes due October 2021
Debt Instrument [Line Items]
Interest rate	3.375%
Debt	$ 600,000		600,000
Notes due March 2024
Debt Instrument [Line Items]
Interest rate	4.625%
Debt	$ 500,000		500,000
Notes due January 2037
Debt Instrument [Line Items]
Interest rate	5.25%	5.25%
Debt	$ 35,841		115,041
Redemption amount		$ 79,000
Notes due March 2043
Debt Instrument [Line Items]
Interest rate	6.70%
Debt	$ 425,000		425,000
Term loans
Debt Instrument [Line Items]
Debt	450,000		450,000
Other debt
Debt Instrument [Line Items]
Debt	$ 5,584		$ 5,677

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Pensions and Other Benefit Programs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
United States
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 30	$ 32
Interest cost	17,244	18,830
Expected return on plan assets	(24,548)	(25,589)
Amortization of transition credit	0	0
Amortization of prior service (credit) cost	(15)	(15)
Amortization of net actuarial loss	7,268	6,706
Settlement	0	1,098
Net periodic benefit cost (income)	(21)	1,062
Foreign
Defined Benefit Plan Disclosure [Line Items]
Service cost	542	527
Interest cost	4,544	5,661
Expected return on plan assets	(7,780)	(8,472)
Amortization of transition credit	(2)	(2)
Amortization of prior service (credit) cost	(18)	(17)
Amortization of net actuarial loss	2,034	1,343
Settlement	0	0
Net periodic benefit cost (income)	(680)	(960)
Nonpension Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	419	501
Interest cost	1,771	2,136
Expected return on plan assets	0	0
Amortization of transition credit	0	0
Amortization of prior service (credit) cost	74	74
Amortization of net actuarial loss	884	1,360
Settlement	0	0
Net periodic benefit cost (income)	$ 3,148	$ 4,071

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Pensions and Other Benefit Programs (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
United States
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	$ 2	$ 4
Foreign
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	9	38
Nonpension Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	$ 5	$ 4

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Effective tax rate (percent)	32.50%	37.10%
Charge from valuation allowance for tax carryovers	$ 4	$ 3
Tax benefit from resolution of settlement	$ 4
Scenario, Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percent decrease in unrecognized benefits, reasonably possible (up to)			25.00%

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Stockholders' (Deficit) Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	$ (103,660)	$ 178,721
Net income	65,133	58,046
Other comprehensive income	26,302	48,793
Dividends paid	(34,567)	(36,010)
Issuance of common stock	(5,184)	(4,134)
Conversion to common stock	0	0
Stock-based compensation expense	5,638	6,303
Repurchase of common stock	0	(128,451)
Balances, end of period	(46,338)	123,268
Preferred stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	1	1
Conversion to common stock		0
Balances, end of period	1	1
Preference stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	483	505
Conversion to common stock	(5)	(13)
Balances, end of period	478	492
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	323,338	323,338
Balances, end of period	323,338	323,338
Additional paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	148,125	161,280
Issuance of common stock	(27,098)	(21,555)
Conversion to common stock	(101)	(273)
Stock-based compensation expense	5,638	6,303
Balances, end of period	126,564	145,755
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	5,107,734	5,155,537
Net income	65,133	58,046
Dividends paid	(34,567)	(36,010)
Balances, end of period	5,138,300	5,177,573
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	(940,133)	(888,635)
Other comprehensive income	26,302	48,793
Balances, end of period	(913,831)	(839,842)
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, beginning of period	(4,743,208)	(4,573,305)
Issuance of common stock	21,914	17,421
Conversion to common stock	106	286
Repurchase of common stock	0	(128,451)
Balances, end of period	$ (4,721,188)	$ (4,684,049)

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Accumulated Other Comprehensive Income (Loss) (Reclassifications) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 836,640	$ 844,589
Interest expense, net	(25,676)	(19,301)
Selling, general and administrative	(306,303)	(326,882)
Income before income taxes	96,549	99,664
Benefit for income tax	31,416	37,024
Net income	65,133	62,640
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	28	(380)
Cost of sales	(111)	225
Interest expense, net	(507)	(507)
Income before income taxes	(590)	(662)
Benefit for income tax	(230)	(258)
Net income	(360)	(404)
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net	(109)	18
Benefit for income tax	(40)	7
Net income	(69)	11
Transition credit | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative	2	2
Pension and postretirement benefit plans | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	(10,225)	(10,547)
Benefit for income tax	(3,517)	(3,799)
Net income	(6,708)	(6,748)
Prior service costs | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative	(41)	(42)
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative	(10,186)	(9,409)
Settlements | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative	$ 0	$ (1,098)

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Accumulated Other Comprehensive Income (Loss) (Changes) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	$ (103,660)	$ 178,721
Other comprehensive income (loss) before reclassifications	19,165	41,652
Amounts reclassified from accumulated other comprehensive loss	7,137	7,141
Other comprehensive income, net of tax	26,302	48,793
Balances, end of period	(46,338)	123,268
Cash flow hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	(1,485)	(3,912)
Other comprehensive income (loss) before reclassifications	216	(432)
Amounts reclassified from accumulated other comprehensive loss	360	404
Other comprehensive income, net of tax	576	(28)
Balances, end of period	(909)	(3,940)
Available for sale securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	120	536
Other comprehensive income (loss) before reclassifications	516	3,465
Amounts reclassified from accumulated other comprehensive loss	69	(11)
Other comprehensive income, net of tax	585	3,454
Balances, end of period	705	3,990
Pension and postretirement benefit plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	(787,813)	(738,768)
Other comprehensive income (loss) before reclassifications	(1,482)	(1,230)
Amounts reclassified from accumulated other comprehensive loss	6,708	6,748
Other comprehensive income, net of tax	5,226	5,518
Balances, end of period	(782,587)	(733,250)
Foreign currency adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	(150,955)	(146,491)
Other comprehensive income (loss) before reclassifications	19,915	39,849
Amounts reclassified from accumulated other comprehensive loss	0	0
Other comprehensive income, net of tax	19,915	39,849
Balances, end of period	(131,040)	(106,642)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances, beginning of period	(940,133)	(888,635)
Other comprehensive income, net of tax	26,302	48,793
Balances, end of period	$ (913,831)	$ (839,842)