UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2023 Commission file number: 1-3579

 State of incorporation:
 Delaware
 I.R.S. Employer Identification No.
 06-0495050

 Address:
 3001 Summer Street,
 Stamford,
 Connecticut
 06926

 Telephone Number:
 (203)
 356-5000

 Securities registered pursuant to Section 12(b) of the Act:

 Title of Each Class
 Trading Symbol(s)
 Name of Each Exchange on Which Registered

 Common Stock, $1 par value per share
 PBI
 New York Stock Exchange

 6.7% Notes due 2043
 PBI.PRB
 New York Stock Exchange

 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No
 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 No
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes No
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer
 o
 Non-accelerated filer
 o

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes No
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No
 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b).
 As of June 30, 2023, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was $ 622 million based on the closing sale price as reported on the New York Stock Exchange. At January 31, 2024, there were 176,528,703 outstanding shares of common stock, $1 par value.
 DOCUMENTS INCORPORATED BY REFERENCE
 Portions of the registrant's proxy statement to be filed within 120 days after our fiscal year end in connection with the Annual Meeting of Stockholders, are incorporated by reference in Part III of this Form 10-K.

 Page Number

 Item 1.
 Business

 Item 1A.
 Risk Factors

 Item 1B.
 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.
 Properties

 Item 3.
 Legal Proceedings

 Item 4.
 Mine Safety Disclosures

 Item 5.
 Market for the Company's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.
 Reserved

 Item 7.
 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.
 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.
 Financial Statements and Supplementary Data

 Item 9.
 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.
 Controls and Procedures

 Item 9B.
 Other Information

 Item 9C.
 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.
 Directors, Executive Officers and Corporate Governance

 Item 11.
 Executive Compensation

 Item 12.
 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.
 Certain Relationships, Related Transactions and Director Independence

 Item 14.
 Principal Accountant Fees and Services

 Item 15.
 Exhibits and Financial Statement Schedules

 Item 16.
 Form 10-K Summary

 Consolidated Financial Statements and Supplemental Data

 Forward-Looking Statements
 This Annual Report on Form 10-K (Annual Report) contains statements that are forward-looking. We believe that these forward-looking statements are reasonable based on our current expectations and assumptions. However, we caution readers that any forward-looking statement within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 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 statement, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking statements in this Annual Report speak only as of the date hereof, and forward-looking statements in documents attached that are incorporated by reference speak only as of the date of those documents.
 While we believe that the expectations reflected in our forward-looking statements are reasonable, forward-looking statements are subject to inherent risks and uncertainties and subject to change. Accordingly, actual results of operations, financial condition and cash flows could differ materially from those projected or assumed in our forward-looking statements. Certain factors which could cause future financial performance to differ materially from expectations include, without limitation:
 • declining physical mail volumes
 • changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets, or changes to the broader postal or shipping markets
 • our ability to continue to grow volumes, gain additional economies of scale and improve profitability within our Global Ecommerce segment
 • the loss of some of our larger clients in our Global Ecommerce and Presort Services segments
 • the loss of, or significant changes to, United States Postal Service (USPS) commercial programs or our contractual relationships with the USPS or USPS' performance under those contracts
 • the impacts of higher interest rates and the potential for future interest rate increases on our cost of debt
 • declines in demand for our ecommerce services resulting from supply chain delays or interruptions affecting our retail clients, or changes in retail consumer behavior or spending patterns
 • changes in international trade policies, including the imposition or expansion of trade tariffs, and other geopolitical risks, including those related to China
 • global supply chain issues adversely impacting our third-party suppliers' ability to provide us products and services
 • expenses and potential impacts resulting from a breach of security, including cyber-attacks or other comparable events
 • the impacts of inflation and rising prices, higher interest rates and a slow-down in economic activity, including a global recession, or a U.S. government shutdown, to the company, our clients and retail consumers
 • competitive factors, including pricing pressures, technological developments and the introduction of new products and services by competitors
 • capital market disruptions or credit rating downgrades that adversely impact our ability to access capital markets at reasonable costs
 • changes in labor and transportation availability and costs
 • changes in foreign currency exchange rates, especially the impact a strengthening U.S. dollar could have on our global operations
 • our success at managing customer credit risk
 • changes in banking regulations, major bank failures or the loss of our Industrial Bank charter
 • changes in tax laws, rulings or regulations
 • our success in developing and marketing new products and services and obtaining regulatory approvals, if required
 • the continued availability and security of key information technology systems and the cost to comply with information security requirements and privacy laws
 • our success at managing relationships and costs with outsource providers of certain functions and operations
 • increased environmental and climate change requirements or other developments in these areas
 • intellectual property infringement claims
 • the use of the postal system for transmitting harmful biological agents, illegal substances or other terrorist attacks
 • acts of nature and the impact of a pandemic on the Company and the services and solutions we offer
 Further information about factors that could materially affect us, including our results of operations and financial condition, is contained in Item 1A. "Risk Factors" in this Annual Report.

 ITEM 1. BUSINESS
 General
 Pitney Bowes Inc. (we, us, our, or the company) is a global shipping and mailing company that provides technology, logistics, and financial services to small and medium sized businesses, large enterprises, including more than 90 percent of the Fortune 500, retailers and government clients around the world. These clients rely on us to remove the complexity and increase the efficiency in their sending of mail and parcels. For additional information, visit www.pitneybowes.com.

 Business Segments
 Domestic parcel services offers retailers a parcel delivery and returns network for end consumers. We operate numerous domestic parcel sortation centers connected by a nationwide transportation network, enabling us to pick up parcels from retailer distribution centers and move them through our physical network. We also offer fulfillment services, providing pick, pack and ship services for clients through three fulfillment centers co-located within parcel sortation centers to facilitate same-day entry into our parcel delivery network.
 Cross-border services offers a range of services for our clients to manage their international shopping and shipping experience. Our proprietary technology enables global tracking and logistics services; calculates duty, tax and shipping costs at checkout; enables multi-currency pricing, payment processing and fraud management; ensures compliance with product restrictions and produces all documentation requirements to meet export complexities and customs clearance.
 Digital delivery services enables clients to reduce transportation and logistics costs, select the best carrier based on need and cost, improve delivery times and track packages in real-time. Powered by our shipping APIs, clients can purchase postage, print shipping labels and access shipping and tracking services from multiple carriers that can be easily integrated into any web application such as online shopping carts or ecommerce sites and provide guaranteed delivery times and flexible payment options.

 We are the largest workshare partner of the USPS and national outsource provider of mail sortation services that allow clients to qualify large volumes of First-Class Mail, Marketing Mail and Marketing Mail Flats and Bound Printed Matter for postal workshare discounts. In 2023, we processed over 15 billion pieces of mail through our network of operating centers throughout the United States. Using our fully-customized proprietary technology, we provide clients with end-to-end solutions from pick up to delivery into the postal system network, expedited mail delivery and optimal postage savings.

 Sending Technology Solutions (SendTech Solutions)
 We provide clients with physical and digital mailing and shipping technology solutions and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. We also offer supplies and maintenance services for these offerings. Our cloud enabled infrastructure provides software-as-a-service (SaaS) offerings delivered online and via connected or mobile devices. Our latest offerings are designed on an open platform architecture that have the capabilities to leverage partnerships with carriers, developers and other innovative companies to deliver value to our clients. We offer financing alternatives that enable clients to finance equipment and product purchases.
 Through our wholly owned subsidiary, The Pitney Bowes Bank (the Bank), we offer clients located in the United States a revolving credit solution for the purchase of postage, services and supplies and an interest-bearing deposit solution to clients who prepay postage. Additionally, we offer financing alternatives that enable clients to finance or lease other manufacturers' equipment and provide working capital. We provide revolving credit solutions to clients in Canada and the U.K. that enable them to make meter rental payments and purchase postage, services and supplies.
 Seasonality
 A larger percentage of our revenue is earned in the fourth quarter relative to the other quarters, driven primarily by higher shipping volumes during the holiday season.

 Sales and Services
 We market our products, solutions and services through a direct and inside sales force, global and regional partner channels, direct mailings and digital channels. We provide call-center, online and on-site support services for our products and solutions. Support services are primarily provided under maintenance contracts.

 Competition
 Our businesses face competition from large, multinational companies and smaller, more narrowly focused regional and local firms. We compete on the basis of technology and innovation, breadth of product offerings, our ability to design and tailor targeted solutions to meet client needs, performance, service and support, price, quality and brand.
 We must continue to invest in our current technologies, products and solutions, and in the development of new technologies, products and solutions in order to maintain and improve our competitive position. We frequently encounter new competitors as the markets in which we participate evolve and newer businesses enter our existing markets.
 A summary of the competitive environment for each of our segments is as follows:

 The domestic parcel services and cross-border solutions market includes competitors of various sizes, including companies and national posts with greater financial resources than us. Some of these competitors specialize in point solutions or freight forwarding services, are full-service ecommerce business process outsourcers and online marketplaces with international logistic support, or major global delivery services companies. We also face competition from companies that can offer both domestic and cross-border solutions in a single package which creates pricing leverage. The principal competitive factors include speed of delivery, price, ease of integration and use, innovative services, reliability, functionality and scalability. We compete based on the accuracy, reliability and scalability of our platform and logistics services, our ability to provide clients and their customers a one-stop full-service ecommerce experience and the ability to provide a more customized shipping solution than some of the larger competitors in the industry.
 Our digital delivery services business competes with technology providers who help make shipping easier and more cost-effective. These technology providers range from large, established companies to smaller companies offering negotiated carrier rates. The principal competitive factors include technology stability and reliability, innovation, access to preferred shipping rates and ease of integration with existing systems.

 We face competition from regional and local presort providers, cooperatives of multiple local presort providers, consolidators and service bureaus that offer presort solutions as part of a larger bundle of outsourcing services. We also face competition from large mailers that have sufficient volumes and the capability to sort their own mailings in-house and could use excess capacity to offer presort services to others. The principal competitive factors include price, innovative service, delivery speed, tracking and reporting, industry expertise and economies of scale. Our competitive advantages include our extensive network capable of processing significant volumes and our innovative proprietary technology that provides clients with reliable, secure and precise services and maximum postage discounts.

 We face competition from other mail equipment and solutions providers and those that offer online shipping and mailing products and services solutions. Additionally, the growth of alternative communication methods as compared to physical mail continue to grow, which creates competition to mail and to our offerings that enable clients to use the mail efficiently. We differentiate ourselves from our competitors through our breadth of physical and digital offerings, including cloud enabled SaaS and open platform architecture offerings; pricing; available financing and payment offerings; product reliability; support services; and our extensive knowledge of the shipping and mailing industry.
 Our financing operations face competition, in varying degrees, from large, diversified financial institutions, including leasing companies, commercial finance companies and commercial banks, as well as small, specialized firms. We believe our competitive advantage that differentiates us from our competitors is the breadth of our financing and payment solutions and our ability to seamlessly integrate these solutions into our clients' shipping and mailing operations.

 Also see Item 1A. Risk Factors for further details regarding the competition our businesses face.

 Research, Development and Intellectual Property
 We invest in research and development activities to develop new products and solutions, enhance the effectiveness and functionality of existing products and solutions and deliver high value technology and differentiated services in high value segments of the market.

 Third-Party Suppliers
 Our SendTech Solutions segment depends on third-party suppliers and outsource providers for a variety of services and product components and the hosting of our SaaS offerings. Our Global Ecommerce and Presort Services segments rely on third-party suppliers

 to help equip our facilities, provide warehouse support and assist with our logistical operations. All of our businesses and corporate functions depend on third-party providers for a variety of data analytics, sales, reporting and other functions. In certain instances, we rely on single-sourced or limited-sourced suppliers and outsourcing vendors around the world because doing so is advantageous due to quality, price or lack of alternative sources. We have risk mitigation programs to monitor conditions affecting our suppliers' ability to fulfill expected commitments. We believe that our available sources for services, components, supplies, logistics and manufacturing are adequate.

 Regulatory Matters
 We are subject to the regulations of postal authorities worldwide related to product specifications of our postage meters. Our Presort Services operations are also subject to USPS regulations. The Bank is chartered as an Industrial Bank under the laws of the State of Utah. The Bank and certain company affiliates that provide services to the Bank are subject to the regulations of the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. We are also subject to transportation regulations for various parts of our business, worldwide customs and trade regulations related to our cross-border shipping services and regulations concerning data privacy and security for our businesses that use, process and store certain personal, confidential or proprietary data.

 Climate Change
 Although climate change has had no material impact on our operations to date, the risk of increasingly severe climate events or the risk that those events happen more frequently could affect one or more of our facilities and our ability to conduct daily operations in the future. Increasing regulatory restrictions in response to climate change could also materially affect our costs, especially with respect to transportation.

 Human Capital
 Employee Profile
 We have approximately 10,500 employees, with 81% located in the United States. We also rely on a contingent hourly workforce to supplement our full-time workforce to meet fluctuating demand.
 We seek to create a high-performance culture that will drive and sustain enhanced long-term value for all our shareholders. To attract, retain and engage the talent needed, we provide competitive compensation and strive to maintain a diverse, inclusive and safe workplace, with equitable opportunities for growth and development. Our compensation programs are designed to reward performance and contribution. We regularly assess the business environments and labor markets in the areas we operate to ensure our compensation programs reflect best practices and are market competitive. Depending on position and level, elements of our compensation packages include base salary or wages, variable compensation based on individual and company objectives and equity. We provide a competitive benefits package fostered on work/life balance, including medical, dental, life and disability insurance, and benefits that provide additional support for our employees' mental, physical, financial and social well-being.

 Diversity and Inclusion
 Maintaining a diverse workforce and an inclusive environment is critical to our success and we view diversity and inclusion as a competitive differentiator that helps us attract, grow, engage and retain the best talent. We celebrate a rich mix of countries, cultures, ages, races, ethnicities, gender identities, sexual orientation, abilities, and perspectives that showcase our humanity, differentiate us as individuals and enhance our businesses. Our global workforce is comprised of over 43% women and 35% of our global managers are women. Our U.S. population is nearly 50% people of color and 36% of our U.S. managers are people of color.
 We continue to increase diversity and inclusion awareness throughout our company through enhancements and improvements to our talent acquisition processes, cultural awareness training and the creation of allies and mentors to help advance diversity and inclusion in our workforce.

 Employee Engagement and Development
 We are committed to creating a culture where our employees feel supported and valued. We offer employees many opportunities to advance their skills, learn new skills and achieve career goals through virtual and in-person development and training programs, professional development initiatives, experiential learning, mentoring and coaching programs and inclusion networks.
 Through multiple platforms, we offer employees and candidates varied opportunities to find development opportunities and stay informed about key changes to our business. We conduct an independent annual employee engagement survey with demonstrated high levels of employee participation. We benchmark our results against our previous year's performance, as well as against other high-performing organizations. We consider the feedback from employees and implement changes where possible and financially prudent.

 Health and Safety
 We are committed to providing a safe workplace that protects against and limits personal injury and environmental harm. Through regular evaluations of site safety performance, sharing of successes, and creating projects to engage employees in safety improvements, we identify risks, provide guidance and training, review and learn from accidents, and reduce injuries. We also report monthly to both local site management and senior leadership on safety metrics, trends, risks and regulatory activity. Through these efforts and employee engagement, we have experienced significant improvements in our total recordable cases and total recordable incident rates since 2019.

 Available Information
 Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments thereto filed with, or furnished to, the SEC, are available, free of charge, through the Investor Relations section of our website at www.investorrelations.pitneybowes.com or from the SEC's website at www.sec.gov, as soon as reasonably practicable after these reports are electronically filed with, or furnished to, the SEC. The other information found on our website is not part of this or any other report we file with or furnish to the SEC.

 Information About Our Executive Officers

 Name
 Age
 Title
 Executive
Officer Since

 Jason C. Dies
 Interim Chief Executive Officer

 2017

 Daniel J. Goldstein
 Executive Vice President and Chief Legal Officer and Corporate Secretary
 2010

 Christoph Stehmann (1)

 Executive Vice President, International Sending Technology Solutions
 2016

 Gregg Zegras
 Executive Vice President and President, Global Ecommerce
 2020

 Ana Maria Chadwick
 Executive Vice President and Chief Financial Officer
 2021

 James Fairweather
 Executive Vice President, Chief Innovation Officer

 2021

 Debbie Pfeiffer (2)

 Executive Vice President and President, Presort Services

 2024

 Shemin Nurmohamed (3)

 Executive Vice President and President, Sending Technology Solutions

 2024

 (1) Effective April 1, 2024, Mr. Stehmann will be retiring.
 (2) Effective January 1, 2024, Ms. Pfeiffer was appointed Executive Vice President and President, Presort Services.
 (3) Effective January 1, 2024, Mrs. Nurmohamed was appointed Executive Vice President and President, Sending Technology Solutions.

 There are no family relationships among the above officers. The above officers have served in various executive positions with the company for at least the past five years except as follows:
 Mr. Zegras was appointed Executive Vice President and President, Global Ecommerce in July 2020. He joined the company in 2013 as President, Imagitas. Prior to joining the company, Mr. Zegras held several executive leadership positions, including at NBC Universal, Sharecare and Hearst Entertainment.
 Ms. Chadwick joined the company as Executive Vice President and Chief Financial Officer in January 2021. Prior to joining the company, Ms. Chadwick was employed at the financial services division of General Electric Company as President and CEO of GE Capital Global Legacy Solutions. Ms. Chadwick spent over 20 years at GE Capital, where she held several executive positions, including Controller of GE Capital Americas and CFO at GE Capital Energy Financial Services.
 Mr. Fairweather was appointed Executive Vice President and Chief Innovation Officer in May 2021. Prior to this, he was Senior Vice President and Chief Technology Officer, Commerce Services. He has been a leader in the company's strategic digital transformation and technology initiatives across Design, SaaS, Data Science and Analytics, API Management, Security and Mobility.
 Ms. Pfeiffer was appointed Executive Vice President and President, Presort Services in January 2024. Prior to this, she was President, Presort Services, Vice President/General Manager of the Columbus and Cincinnati Ohio Operating Centers, Vice President of National Accounts and Vice President Sales & Client Services,
 Mrs. Nurmohamed was appointed Executive Vice President and President, Sending Technology Solutions in January 2024. She joined the company in 2016 as Vice President, Document Messaging Technologies France. Prior to joining the company, Mrs. Nurmohamed had a 16 year career at IBM as CFO and Sales Director of various business units at the European and global levels.

 ITEM 1A. RISK FACTORS

 Our operations face certain risks that should be considered in evaluating our business. We manage and mitigate these risks on a proactive basis, using an enterprise risk management program. Nevertheless, the following risk factors, some of which may be beyond our control, could materially affect our business, financial condition, results of operations, brand and reputation, and may cause future results to be materially different than our current expectations. These risk factors are not intended to be all inclusive.

 Mailing and Shipping Industry Risks

 The financial condition of the USPS, or the national posts in our other major markets, has affected, and could, in the future, affect the ability of those posts to provide services to us or our clients, which could adversely affect client demand for our offerings and thus our financial performance.
 We are dependent on financially viable national posts in the geographic markets where we operate, particularly in the United States. A significant portion of our revenue depends upon the ability of these posts, especially the USPS, to provide competitive mail and package delivery services to our clients and the quality of the services they provide. Their ability to provide high quality service at affordable rates in turn depends upon their ongoing financial strength. Although Congress provided the USPS a measure of relief with the enactment of the Postal Service Reform Act of 2022, the USPS, and national posts in our other major markets, still face financial challenges. If these challenges interfere with these posts' ability to continue to provide the services they currently provide, our financial performance may be adversely affected.

 Our ability to compete in the package shipping market in the United States depends upon certain contractual relationships we have with the USPS and the successful performance of those services.
 The USPS is our primary provider for the "last mile" component of our parcel delivery services in the United States. This represents a significant component of our cost in offering these services. If we are unable to receive competitive pricing from the USPS or take advantage of lower cost USPS options, our ability to compete with private carriers and achieve profitable revenue growth may be adversely affected. Our digital delivery options also depend upon certain contractual relationships with the USPS to enable us to offer these services profitably, and the USPS has adjusted the terms of those contracts in the past. Should the USPS make additional changes to how it contracts with us for this service, our profitability could be adversely affected. The quality of service we provide to our clients also depends upon the quality of delivery services received from the USPS. As the ecommerce market continues to evolve, and as the USPS implements changes to its network, if the USPS' service performance is materially worse than that of the private carriers, we may lose clients to competition and our financial performance may be adversely affected.

 We are subject to postal regulations and processes, which could adversely affect our financial performance.
 A significant portion of our business is subject to regulation and oversight by the USPS, posts in other major markets, and the governmental bodies that regulate the posts themselves. These postal authorities have the power to regulate some of our current products and services and to establish guidelines for postage rates. They also must approve many of our new or future product and service offerings before we can bring them to market. If new or future product and service offerings are not approved or there are significant conditions to approval, favorable postage rates are reversed, regulations on existing products or services are changed, posts utilize their position in the market or their role as product regulator to limit competition in areas where the posts themselves offer solutions, or if we fall out of compliance with the posts' regulations, our financial performance could be adversely affected.

 If we are not able to respond to the continuing decline in the volume of physical mail delivered via traditional postal services, our financial performance could be adversely affected.
 Continuing declines in traditional mail volumes impact our financial results, primarily within our SendTech Solutions and Presort Services segments. An accelerated or sudden decline could result from one or more of the following factors: changes in communication technologies and their use; changes in frequency and quality of mail delivery from national posts; legislation incentivizing alternative means of communication, burdening mail, or limiting how the mail be used; significant rate increases; or other external events affecting physical mail delivery. If we are not successful at meeting the continuing challenges faced in our mailing business, or if physical mail volumes experience an accelerated or sudden decline, our financial performance could be adversely affected.

 Significant changes to the laws regulating the USPS or other posts, or changes in their operating models could have an adverse effect on our financial performance.
 As a significant portion of our revenue and earnings is dependent on postal operations, changes in the laws and regulations that affect how posts operate could have an adverse effect on our financial performance. As posts consider new strategies for their operations in

 an era of declining mail volumes and increasing package volumes, if we are unable to work with posts to support those strategies, our financial performance could be adversely affected.

 Business Operational Risks

 We face intense competition in the industries in which we operate.
 The markets for our products and services in each of our segments are highly competitive. In our Global Ecommerce segment, we face competition from full-service ecommerce business process outsourcers, online marketplaces, freight forwarders, posts, and major global delivery services companies, including those that can offer both domestic and cross-border solutions in a single package. If we cannot compete successfully in these markets with, among other things, speed of delivery, price, reliability, functionality and scalability of our platform and logistic services and ease of integration and use, we may lose clients, incur additional costs and suffer from reduced margins, and the financial results of the segment may be adversely affected. Our Presort Services segment faces competition from regional and local presort providers, cooperatives of multiple local presort providers, consolidators and service bureaus that offer presort solutions as part of a larger bundle of outsourcing services and large volume mailers that have sufficient volumes and the capability to presort their own mailings in-house and could use excess capacity to offer presort services to others. If we are not able to effectively compete on price, innovative service, delivery speed, tracking and reporting, we may lose clients and the financial results of the segment may be adversely affected. Our Sending Technology Solutions segment faces competition from other mail equipment and solutions providers, companies that offer products and services as alternative means of message communications and those that offer online shipping and mailing products and services solutions. Our digital delivery business competes with technology providers ranging from large, established companies and national posts to smaller companies offering negotiated carrier rates. In addition, our financing operations face competition, in varying degrees, from large, diversified financial institutions, including leasing companies, commercial finance companies and commercial banks, as well as small, specialized firms. If we are not able to differentiate ourselves from our competitors or effectively compete with them, the financial results of the segment may be adversely affected.

 The evolution of our businesses to more digital and shipping-related services has resulted in a decline in our overall profit margins. If we cannot increase our volumes while at the same time reduce our costs, our overall profitability could be adversely affected.
 As our businesses shift to more digital and shipping-related services, the relative revenue contribution from our shipping-related offerings now exceeds that of the revenue from our mailing-related offerings. We expect the revenue contribution from shipping-related services to continue to grow; however, profit margins on these services are lower than those for our mailing-related offerings. As a result, we need to achieve higher dollars of revenue to generate the same dollars of profit that we generate in our mailing businesses. Accordingly, if we cannot continue to grow package volumes and gain additional economies of scale, and in turn, improve margins and profitability, our short and long-term financial performance may be adversely affected.

 Seasonality of the Global Ecommerce segment, unexpected declines in consumer demand or the performance of our retail customers, or unexpected spikes in the costs of labor or transportation, especially during the fourth quarter, could adversely affect our overall performance.
 Our Global Ecommerce segment derives the majority of its revenue from retail clients. The retail industry is subject to cyclical trends in consumer sentiment and spending habits that are affected by many factors, including prevailing economic conditions, recession or fears of recession, inflation, exchange rates, unemployment levels, pandemics, or geopolitical events. Our retail clients are also dependent on third-party suppliers to provide them with either raw materials or finished goods to meet the demands of their clients. This segment also relies upon the availability of labor and transportation at a reasonable cost and unexpected increases in these costs due to higher demand or other macroeconomic factors (which have occurred in the past) could also impact the financial results of Global Ecommerce. Further, the financial results for Global Ecommerce are highly dependent on its performance in the fourth quarter, so if any of these risk factors come to pass in that quarter, the impact on the segment's performance could be more significant than other times in the year.

 The loss of any of our largest clients in our Global Ecommerce segment could adversely affect the financial performance of that segment.
 The Global Ecommerce segment receives a large portion of its revenue from a relatively small number of clients and business partners. If any of these larger clients or business partners leave our network or reduce their use of our services, which has occurred in the past, and we are unable to replace that lost volume, it could have a material adverse effect on the revenue and profitability of the segment.

 There can be no assurance that our larger clients and business partners will continue to utilize our products or services at current levels, or that we would be able to replace any of these clients or business partners with others who can generate revenue at current levels.

 If we fail to effectively manage our third-party suppliers, or if their ability to perform were negatively impacted, our business, financial performance and reputation could be adversely affected.
 Our SendTech Solutions segment relies on third-party suppliers for services and components for our mailing equipment, spare parts, supplies and services and for the hosting of our SaaS offerings. We also rely on third-party suppliers to help us equip our Presort and Ecommerce facilities and to provide us with services related to some of our operations and productivity initiatives. In certain instances, we rely on single-sourced or limited-sourced suppliers around the world because of advantages in quality, price or lack of alternative sources. Like many other companies, we and our suppliers have experienced interruptions and increased supply costs in the past, due to, among other things, volatility in the semiconductor industry, threats of strikes, rising inflation and geopolitical instability. Although our 2023 financial results were not significantly impacted, these factors, at times, caused us to experience longer wait times for supplies or increased costs. If these supply chain constraints were to worsen or, if other unknown events cause our suppliers to not be able to provide their services, components or equipment to us in a timely manner, or, if the quality of the goods or services received were to deteriorate, our relationship with certain suppliers were to be terminated, or if the costs of using these third parties were to continue to increase and we were not able to find alternate suppliers, we could lose clients, incur significant disruptions in manufacturing and operations and increased costs (including higher freight and re-engineering costs) and delay automation and productivity initiatives in our warehouses.

 Fluctuations in transportation costs or disruptions to transportation services in our Global Ecommerce or Presort Services segments could adversely affect client satisfaction or our financial performance.
 In addition to our reliance on the USPS, our Global Ecommerce and Presort Services segments rely upon third-party transportation service providers to transport a significant portion of our parcel and mail volumes. Some of these providers may also be competitors. The use of these providers is subject to risks, including our ability to negotiate acceptable terms, increased competition during peak periods, capacity issues, increased fuel costs, labor shortages, performance problems, extreme weather, natural or man-made disasters, pandemics, or other unforeseen difficulties. Given our continued reliance upon these providers, any disruption to the timely supply of these services, any future unforeseen disruptions affecting these providers, any dramatic increase in the cost of these services or any deterioration of the performance of these services (each of which we have experienced, at times), have adversely affected or could adversely affect client satisfaction and our financial performance.

 Our business depends on our ability to attract, retain, and engage with, employees at a reasonable cost to meet the needs of our business and to consistently deliver highly differentiated, competitive offerings.
 The rapid growth of the ecommerce industry has resulted in ongoing competition for employees in the shipping, transportation, and logistics industry, including drivers and warehouse employees. At times, both our Global Ecommerce and Presort Services segments have experienced increased demand and competition for labor, especially for our warehouses, driving up costs. We supplement our workforce with contingent hourly workers from staffing agencies on an as-needed basis; however, if we experience labor shortages, do not effectively manage our ability to attract and utilize contingent workers, or if our staffing agencies terminate their relationship with us and we cannot find alternative providers, it could result in increased costs and adversely affect our operations. Moreover, given the nature of our Global Ecommerce and Presort Services employee base, if we cannot continue to maintain good relationships, we could experience increased employee dissatisfaction and turnover, which could result in increased operating costs and reduced operational flexibility.
 In May 2023, we approved a worldwide restructuring plan (the 2023 Plan), which involved the elimination of 850-950 positions worldwide. Such actions may cause us to experience a loss of continuity, loss of accumulated knowledge and/or inefficiency, loss of key employees and/or other retention issues during transitional periods. Such actions may also make hiring qualified employees more difficult.
 There is also significant competition for the talent needed for research and development of new products and services and talent needed to sell and service our other products and services within all our business units. Increased competition for employees has resulted in higher costs for wages and other benefits necessary to attract and retain employees with the right skill sets. Additional labor costs which may also impact our business include those triggered by federal, state and local laws and regulatory actions; increased health care and workers' compensation insurance expenses; and costs associated with the health and safety of our employees.

 Difficulty in obtaining and protecting our intellectual property, and the risk of infringement claims by others may negatively impact our financial performance.
 Our businesses are not materially dependent on any one patent or license or group of related patents and licenses; however, our business success depends in part upon protecting our intellectual property rights, including proprietary technology developed or obtained through acquisitions. We rely on copyrights, patents, trademarks, trade secrets and other intellectual property laws to establish and protect our proprietary rights. If we are unable to protect our intellectual property rights, our competitive position may suffer, which could adversely affect our revenue and profitability. The continued evolution of patent law and the nature of our innovation work may affect the number of patents we are able to receive for our development efforts. As we continue to transition our business to more software and service-based offerings, patent protection of these innovations will be more difficult to obtain. In addition, from time to time, third parties may claim that we, our clients, or our suppliers, have infringed their intellectual property rights. These claims, if successful, may require us to redesign affected products, enter into costly settlement or license agreements, pay damage awards, or face a temporary or permanent injunction prohibiting us from marketing or selling certain products.

 If we fail to comply with government contracting regulations, our financial performance, brand name and reputation could suffer.
 We have a significant number of contracts with governmental entities. Government contracts are subject to extensive and complex procurement laws and regulations, along with regular audits and investigations by government agencies. If one or more government agency discovers contractual noncompliance by us or one of our subcontractors, we may be subject to various civil or criminal penalties and administrative sanctions, which could include the termination of the contract, reimbursement of payments received, fines and debarment from doing business with other government agencies. Any of these events could not only affect our financial performance, but also adversely affect our brand and reputation.

 We may not fully realize the anticipated benefits of strategic acquisitions and divestitures which may harm our financial performance.
 Strategic acquisitions and business divestitures involve significant risks and uncertainties, which could have an adverse effect on our financial performance, including:
 • difficulties in achieving anticipated benefits or synergies;
 • difficulties in integrating newly acquired businesses and operations, including combining product and service offerings and integrating financial reporting and other IT systems;
 • the loss of key employees or clients of businesses acquired or divested;
 • significant charges for employee severance and other restructuring costs, legal, accounting and financial advisory fees and goodwill and asset impairment charges; and
 • reducing fixed costs previously associated with divested businesses

 Our capital investments to develop new products and offerings may not yield the anticipated benefits.
 We made and are continuing to make significant capital investments in new products and services. If we are not successful in these new product or service introductions, or if our past investments in facilities do not yield the expected productivity improvements, at the levels anticipated when making the investments, there may be an adverse effect on our financial performance.

 Cybersecurity and Technology Risks

 Our financial performance and our reputation could be adversely affected, and we could be subject to legal liability or regulatory enforcement actions, if we or our suppliers are unable to protect against, or effectively respond to, cyberattacks or other cyber incidents.
 We depend on the security of our and our suppliers' information technology systems to support numerous business processes and activities, to service our clients, and to enable consumer transactions and postal services. There are numerous cybersecurity risks to these systems, including individual and group criminal hackers, industrial espionage, denial of service attacks, ransomware and malware attacks, attacks on the software supply chain, and employee errors and/or malfeasance. These cyber threats are constantly evolving, especially given the advances in, and the rise of the use of, artificial intelligence, thereby increasing the difficulty of preventing, detecting, and successfully defending against them. Successful breaches could, among other things, disrupt our operations or result in the unauthorized disclosure, theft and misuse of company, client, consumer and employee sensitive and confidential information, all of which could adversely affect our financial performance. Cybersecurity breaches could result in financial liability to other parties, governmental investigations, regulatory enforcement actions and penalties, and damage to our brand and reputation. Although we maintain insurance coverage relating to cybersecurity incidents, we may incur costs or financial losses that are either not insured against or not fully covered through our insurance. Despite the fact that we continually implement and update measures to enhance our cybersecurity protections and minimize the impact of any potential attack, none of these measures are fool proof and like all companies, intrusions will occur, and have occurred in the past (e.g. the previously disclosed ransomware attacks we experienced

 in 2019 and 2020). Our goal is to prevent meaningful incursions and minimize the overall impact of those that occur. For more information on how the Company handles cybersecurity, see Item 1C. Cybersecurity.
 Failure to comply with data privacy and protection laws and regulations could subject us to legal liability and adversely affect our reputation and our financial performance.
 Our businesses use, process, and store proprietary information and personal, sensitive, or confidential data relating to our business, clients, and employees. Privacy laws and similar regulations in many jurisdictions where we do business require that we take significant steps to safeguard that information, and these laws and regulations continue to evolve. The scope of the laws that may be applicable to us is often uncertain and may be conflicting. In addition, new laws may add a broad array of requirements on how we handle or use information and increase our compliance obligations. For example, the European Union greatly increased the jurisdictional reach of European Law by enacting the General Data Protection Regulation (GDPR), which, among other things, enhanced an individual's rights with respect to their information. However, ongoing litigation in the European Union on how to comply with GDPR requirements continues to create uncertainty in how to demonstrate compliance, and the outcome of these cases could impact how companies do business in the European Union. In the United States, a growing number of states have enacted different laws regarding personal information and privacy that impose significant new requirements on consumer personal information. In some instances (e.g., California), these laws also expand the definition of consumer personal information to include information related to employees and business contacts. Some of these state laws have established independent agencies with rule making and enforcement authority, whose initial guidance, actions, and regulations remain to be determined and tested, adding additional layers of uncertainty with respect to compliance. Other countries or states have enacted and will continue to enact and amend laws or regulations in the future that have similar or additional requirements. Although we continually monitor and assess the impact of these laws and regulations, and continually update our systems to protect our data and comply with these laws, their interpretation and enforcement are uncertain, subject to change, and may require substantial costs to monitor and implement. Failure to comply with data privacy and protection laws and regulations could also result in government enforcement actions (which could include substantial civil and/or criminal penalties) and private litigation, which could adversely affect our reputation and financial performance.

 If we or our suppliers encounter unforeseen interruptions or difficulties in the operation of our cloud-based applications, our business could be disrupted, our reputation and relationships may be harmed, and our financial performance could be adversely affected.
 Our business relies upon the continuous and uninterrupted performance of our and our suppliers' cloud-based applications and systems to support numerous business processes, to service our clients and to support their transactions with their customers and postal services. Our applications and systems, and those of our partners, may be subject to interruptions due to technological errors, system capacity constraints, software errors or defects, human errors, computer or communications failures, power loss, adverse acts of nature and other unexpected events. We have business continuity and disaster recovery plans in place to protect our business operations in case of such events and we also require our suppliers to have the same. Nonetheless, there can be no guarantee that these plans will function as designed. If we are unable to limit interruptions or successfully correct them in a timely manner or at all, it could result in lost revenue, loss of critical data, significant expenditures of capital, a delay or loss in market acceptance of our services and damage to our reputation, brand and relationships, any of which could have an adverse effect on our business and our financial performance.

 Macroeconomic and General Regulatory Risks

 Periods of difficult economic conditions, other macroeconomic events, or a public health crisis could adversely affect our business.
 Our operations and financial performance are impacted by the economic conditions in the United States and the other countries where we and our clients do business. Any significant or perceived weakening of these economies, reduction in business confidence or change in business or consumer spending habits, concerns of a domestic or global recession, rising inflation or interest rates, limited availability of credit, or other macroeconomic events (including public health crises), not within our control, may reduce our client's demand for shipping and mailing products and services (especially in our Global Ecommerce business, which is subject to cyclical trends in consumer sentiment and spending habits) and thus, negatively affect our financial performance. These economic conditions, at times, have arisen and can arise suddenly, and the duration and full impact of such conditions can be difficult to predict, which could adversely impact our business, financial condition, and results of operations.

 Future credit rating downgrades, capital market disruptions, significant decline in cash flows, noncompliance with any of our debt covenants, or significant withdrawals by depositors at the Bank, could adversely affect our ability to maintain adequate liquidity, provide competitive financing services and to fund various discretionary priorities.
 We provide competitive finance offerings and fund discretionary priorities, such as business investments, strategic acquisitions, dividend payments and share repurchases through a combination of cash generated from operations, deposits held at the Bank and access to capital markets. Our ability to access U.S. capital markets and the associated cost of borrowing is dependent upon our credit ratings and is subject to capital market volatility. Given our current credit rating, we may experience reduced financial or strategic

 flexibility and higher costs when we do access the U.S. capital markets. We maintain a $500 million revolving credit facility that requires we maintain certain financial and nonfinancial covenants.
 A significant decline in cash flows, noncompliance with any of the covenants under the revolving credit facility, further credit rating downgrades, material capital market disruptions, significant withdrawals by depositors at the Bank, adverse changes to our industrial loan charter or an increase in our credit default swap spread could impact our ability to maintain adequate liquidity, which could impact our ability to provide competitive finance offerings, repay or refinance maturing debt, and fund other strategic or discretionary activities, which could adversely affect our operational and financial performance.

 Changes in tax rates, laws or regulations could adversely impact our financial results.
 We are subject to taxes in the U.S. and in the foreign jurisdictions where we do business. Due to continuing global fiscal challenges and political conditions, tax laws and enforcement approaches have been and may continue to be subject to significant change. Changes in tax laws may be on a prospective or retroactive basis and could have a material impact of our tax expense and cash flows. The Organization for Economic Co-operation and Development (OECD) have set forth a Two-Pillar Solution fundamentally overhauling the international tax rules. Pillar One focuses on reallocation of profits while Pillar Two applies a global minimum corporate tax. The OECD has set forth Model Rules and an ambitious timeline to ensure the effective implementation of the Two-Pillar Solution. Although some jurisdictions have issued guidance or passed tax laws based on the OECD Model Rules, the final nature, timing and extent of any such tax reforms or other legislative or regulatory actions is unpredictable, and it is difficult to assess their overall effect. However, these changes could result in double tax, increase our effective tax rate and adversely impact our financial results and cash flows.
 We are subject to tax audits in the various jurisdictions in which we operate. Given the complexity of the current and changing tax laws and regulations, tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly review the strength of our positions based on current law, court cases, rulings and proposed legislative changes to determine the appropriateness of our tax provision, however, there can be no assurance that we will accurately predict the outcomes of these audits, which could have a material impact on our effective tax rate and adversely impact our financial results and cash flows.

 Our Global Ecommerce segment is exposed to increased foreign exchange rate fluctuations.
 The sales generated from many of our clients who use our cross-border services are exposed to foreign exchange rate fluctuations. Currently, merchants using our cross-border services are located primarily in the U.S. and the U.K. and a majority of consumers making purchases through these platforms are in a limited number of foreign countries. The current strength of the U.S. Dollar relative to currencies in the countries where we do the most business continues to impact our client's ability to compete internationally as the cost of similar international products improved relative to the cost of U.S. retailer's products. This in turn, adversely affected Global Ecommerce's revenue and profitability during the past two years. If the strength of the U.S. dollar continues, or if the British Pound were to strengthen relative to other currencies, our retailers may continue to experience a decrease in international sales volumes, which, in turn would adversely affect this segment's revenue and profitability.

 Our operations and financial performance may be negatively affected by changes in trade policies, tariffs and regulations.
 Our Global Ecommerce segment is subject to significant trade regulations, taxes, and duties throughout the world. Any changes to these regulations could potentially impose increased documentation and delivery requirements, delay delivery times and subject us to increased costs and additional liabilities, which could adversely affect our financial performance. Within the last four years, the United States increased tariffs for certain goods, which triggered other nations to also increase tariffs on certain of their goods. For our Global Ecommerce segment, tariff increases, or even an environment of uncertainty surrounding trade issues, could reduce demand and adversely affect its financial performance. For our SendTech Solutions segment, increased tariffs resulted in additional costs on certain components used in some of our products.

 If we do not keep pace with evolving expectations and regulations in the areas of Environmental, Social and Governance (ESG) and address the potential impact of climate change on our costs and operations, our reputation and results of operations may be adversely affected.
 The set of topics incorporated within the term ESG in general, and climate change in particular, cover a range of issues that pose potential risks to our operations. From an environmental perspective, the impact of climate change and a potential increase in extreme weather events may pose risk to the operation of our sortation facilities and the ability to transport mail and packages. The increased focus on alternative energy sources and the need to reduce our carbon footprint over time, could result in higher investments in capital spending and increased operational costs. There are also a series of laws related to product stewardship and waste disposal to which we need to comply. From a "social" perspective, a failure to meet employee expectations around safety and diversity, equity and inclusion could impact our ability to recruit new employees and retain talent. Finally, from a "governance" perspective, if we do not

 maintain good governance processes in general or do not satisfy investor stakeholder expectations on ESG, our reputation and attractiveness to portions of the investment community could be adversely affected.

 Shareholder Activism Risks

 Our business could be negatively affected as a result of shareholder activism.
 We value constructive input from investors and regularly engage with our stockholders regarding strategy and performance. Although our Board of Directors and management team are committed to acting in the best interests of all our stockholders, there is no assurance that the results of actions taken by our Board of Directors and management team will be successful.
 In 2023, Hestia Capital Partners, LP (collectively with its affiliates, "Hestia") ran a proxy contest seeking the election of five of its nominees to our Board of Directors at the 2023 annual meeting of stockholders (the "2023 Annual Meeting"). At the 2023 Annual Meeting held on May 9, 2023, our stockholders voted to elect four directors nominated by Hestia to serve on our Board of Directors. Any qualifying stockholder may conduct a proxy contest in the future. Responding to proxy contests, including related litigation, can be costly, time-consuming, disrupt our operations and divert the attention of management, Board of Directors and employees. All of this could adversely affect our results of operations and financial condition, as well as the market performance of our securities.
 Additionally, perceived uncertainties as to our future direction or changes to the composition of our Board of Directors as a result of activist stockholders, may lead to the perception of an adverse change in the direction of our business, instability or lack of management or oversight continuity. These uncertainties may be more acute or heightened if an activist stockholder seeks to change a majority of our Board of Directors. Actions by activist stockholders may be exploited by our competitors and/or other activist stockholders, cause concern to customers, employees, investors, rating agencies, strategic partners and other constituencies, which could result in lost sales and business opportunities, make it more difficult to attract and retain qualified personnel and business partners and adversely impact our ability to access capital markets at reasonable costs. Further, actions of activist stockholders may cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.

 ITEM 1B. UNRESOLVED STAFF COMMENTS
 None.

 ITEM 1C. CYBERSECURITY
 A comprehensive cybersecurity program is critical to achieving our business goals. Like all companies in today's world, we face a multitude of cybersecurity threats that range from ransomware and denial-of-service, to attacks from more advanced nation state actors, and even insider threats. Likewise, our customers, suppliers, subcontractors and partners face similar cybersecurity threats, and a cybersecurity incident impacting us or any of these entities could materially adversely affect our business operations and financial performance. These cybersecurity threats and related risks make it imperative that we expend considerable resources to safeguard our organization's assets and to prevent service disruptions or minimize the impact should an incident occur.
 The Audit Committee of the Board of Directors oversees the technology functions, including management's processes for identifying and mitigating risks, including cybersecurity risks, to help align our risk exposure with our strategic objectives. Senior technology leadership, including our Chief Information Security Officer (CISO), briefs the Audit Committee of the Board of Directors on our cybersecurity and information security posture semi-annually and on an as needed basis and the full Board of Directors is apprised on an annual basis. In the event of an incident, we strive to follow our detailed incident response playbook, which outlines the steps to be taken from incident detection to mitigation, recovery and notification, including notifying functional areas (e.g. legal), customers, as well as senior leadership and the Board, in each case, as appropriate.
 Our information security organization is led by the CISO, who is responsible for our overall information security strategy, policy, security engineering, operations and cyber threat detection and response. The Vice President of Product Security (VP of Product Security) provides additional expertise and focus attempting to ensure the integrity and resiliency of the products and services we provide to our customers. Combined, the CISO and VP of Product Security possess over 50 years of deep information technology, cyber security, program management, and risk experience. The information security organization manages and continually enhances a robust enterprise security structure with the goal of preventing cybersecurity incidents to the extent feasible, while simultaneously increasing our system resilience in an effort to minimize the business impact should an incident occur. Our cybersecurity program attempts to follow the National Institute of Standards and Technology (NIST) Cybersecurity Framework principles. We have adopted a risk-based management process used to define, manage, and prioritize controls required to maintain the integrity and availability of our digital assets. Employees outside of our corporate information security organization also have a role in our cybersecurity defenses

 and they are immersed in a corporate culture and periodic training, supportive of security, which we believe improves our overall cybersecurity posture.
 We have also extended our cybersecurity governance to our operational business executives. Mission critical information assets, those that would cause significant business, customer, or employee impact, are periodically presented by technical leadership to the appropriate senior management executive. This is a formal assessment which describes the underlying cyber posture, mitigation plan, and commitments. In addition, the Company's Privacy and Cybersecurity Steering committee, which is co-led by the CISO and the VP of Product Security and comprised of leaders from the Company's information technology, innovation, legal and internal audit organizations, meets periodically to ensure the overall Cybersecurity Program is progressing against its goals and new risks are operationally prioritized.
 We rely heavily on third parties to support our products, business operations and technology services, and a cybersecurity incident at a supplier, subcontractor or partner could materially adversely impact us. Where possible, we endeavor to include information security provisions, audit rights and insurance requirements, in contracts with our suppliers and third-parties based on their level of access to our systems and data. For our most critical suppliers, where possible, we attempt to pursue an annual attestation of ongoing compliance to our standard policies and practices. For select suppliers, we engage third-party cybersecurity monitoring and alerting services, and seek to work directly with those suppliers to address potential deficiencies identified.
 Given the constantly evolving cyber-threat landscape, as well as the previously disclosed ransomware attacks we experienced in 2019 and 2020, we continuously test and evolve our cybersecurity program. We engage internal security team experts who perform 'ethical hacks' against our information assets to uncover risks. As part of its risk based annual audit plan, our internal audit team reviews a number of components of our information technology operations, which taken together, comprise our cybersecurity defenses. A report of its findings is distributed to certain members of management and completion of the auditor's comments is tracked and reported up to the Audit Committee of the Board. We also engage third-party service providers to conduct evaluations of our security controls, whether through penetration testing, independent audits or consulting on best practices to address new challenges. These evaluations include testing both the design and operational effectiveness of security controls.
 Assessing, identifying, and managing cybersecurity related risks are integrated into our overall enterprise risk management (ERM) process. Cybersecurity related risks are included in the risk universe that our ERM process evaluates to assess top risks to the enterprise on an annual basis. To the extent the ERM process identifies a heightened cybersecurity related risk, risk owners are assigned to develop risk mitigation plans, which are then tracked to completion. The ERM process annual risk assessment is presented to the Audit Committee of the Board of Directors.
 Notwithstanding the cybersecurity protections we have in place, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. See Item 1A. "Risk Factors" for a discussion of cybersecurity risks.

 ITEM 2. PROPERTIES
 We lease numerous facilities worldwide, including administrative offices, fulfillment centers, parcel operations and mail sortation facilities, service locations, data centers and call centers. Our corporate headquarters is located in Stamford, Connecticut.
 Our Global Ecommerce segment leases three fulfillment centers that comprise the majority of our fulfillment operations. Our Global Ecommerce and Presort Services segments conduct parcel operations and mail sortation operations through a network of approximately 45 operating centers throughout the United States. Our SendTech Solutions segment leases a manufacturing and distribution facility in Indianapolis. This facility is significant as it stores a majority of the SendTech Solutions products, supplies and inventories.
 Should any facility be unable to function as intended for an extended period of time, our ability to service our clients and operating results could be impacted.
 We conduct our research and development activities in facilities located in Noida and Pune, India, Bielsko-Biala, Poland, Austin, Texas and Shelton, Connecticut. Management believes that our facilities are in good operating condition, materially utilized and adequate for our current business needs.

 ITEM 3. LEGAL PROCEEDINGS
 See Note 15 Commitments and Contingencies to the Consolidated Financial Statements for additional information.

 ITEM 4. MINE SAFETY DISCLOSURES
 Not applicable.

 ITEM 5. MARKET FOR THE COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Our common stock is principally traded on the New York Stock Exchange (NYSE) under the symbol "PBI". At January 31, 2024, we had 11,860 common stockholders of record.

 Dividends and Share Repurchases
 We have historically paid a quarterly dividend to our shareholders. Each quarter, our Board of Directors considers our recent and projected earnings and other capital needs and priorities in deciding whether to approve a dividend. We expect to continue to pay a quarterly dividend of $0.05 per share; however, our Board of Directors may decide to increase or decrease this amount or to not approve the payment of a dividend at any time. We may repurchase shares of our common stock to manage the dilution created by shares issued under employee stock plans and for other purposes. We did not repurchase any additional shares of our common stock in 2023.
 Stock Performance Graph
 The accompanying graph shows the annual change in the value of a $100 investment in Pitney Bowes Inc., the Standard and Poor's (S&P) SmallCap 600 Composite Index and a peer group over a five-year period assuming the reinvestment of dividends. Our peer group consists of publicly traded companies similar in size and/or complexity that best align with our current businesses. The composition of our peer group is the result of the Compensation Committee's independent compensation consultant's recommendations. As such, the composition of our peer group could change year-over year.
 Our 2023 peer group was updated from 2022 to include one additional company. The inclusion of this company did not impact the total shareholder return of our peer group.
 Our peer group for 2023 is comprised of: ACCO Brands Corporation, Avery Dennison Corporation, Cimpress plc, Bread Financial Holdings, Inc., Deluxe Corporation, Diebold Nixdorf, Incorporated, Etsy, Inc., Fidelity National Information Services, Inc., Fiserv, Inc., GXO Logistics, Inc., Hub Group, Inc., NCR Corporation, Overstock.com, Inc., Rockwell Automation, Inc., Ryder System, Inc., Schneider National, Inc., The Western Union Company, W.W. Grainger, Inc. and Xerox Holdings Corporation.

 On a total return basis, a $100 investment on December 31, 2018, in Pitney Bowes Inc., the S&P SmallCap 600 Composite Index, and our peer group would have been worth $93, $169 and $144 respectively, on December 31, 2023.
 All information is based upon data independently provided to us by Standard & Poor's Corporation and is derived from their official total return calculation. Total return for the S&P SmallCap 600 Composite Index and our peer group is based on market capitalization, weighted for each year. The stock price performance is not necessarily indicative of future stock price performance.

 ITEM 6. [RESERVED]

 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
 OPERATIONS

 RESULTS OF OPERATIONS
 The following discussion of our financial condition and operating results should be read in conjunction with our risk factors, consolidated financial statements and related notes. This discussion includes forward-looking statements based on management's current expectations, estimates and projections and involves risks and uncertainties. Actual results may differ significantly from those currently expressed. A detailed discussion of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements is outlined under "Forward-Looking Statements" and "Item 1A. Risk Factors" in this Form 10-K. All table amounts are presented in thousands of dollars.
 A discussion of our financial condition and results of operations for the year ended December 31, 2021, can be found under Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 17, 2023.

 OUTLOOK
 We expect consolidated revenue to be flat to a low single-digit decline and EBIT margins to be relatively flat in 2024 compared to 2023. Within SendTech Solutions, we expect revenue and EBIT declines due in part to lower equipment sales as initial lease terms of prior equipment sales expire and customers are expected to renew these leases for a fixed term rather than purchase new equipment. We also expect revenue to decline due to lower meter populations due to the migration to cloud-based solutions. These declines will be partially offset by higher shipping revenues.
 Within Presort Services, we anticipate total volumes to be relatively flat in 2024 compared to 2023, but revenue to benefit slightly from increased workshare discounts. We expect margin and profit to remain relatively flat to slightly higher compared to the prior year.
 Within Global Ecommerce, we expect revenue growth in domestic parcel services driven by increased volumes, partially offset by lower revenue from cross-border services. We anticipate margin and profit improvements compared to 2023.
 We continue to make progress on our worldwide restructuring program and expect to realize annualized cost savings of $75-$85 million by the end of 2024, a portion of which was realized in 2023. However, we also expect higher interest costs and the restoration of variable compensation costs in 2024 to significantly offset these savings.
 See our Forward-Looking Statements under Part I on page 3 and Risk Factors under Item 1A for certain factors, some beyond our control, which could adversely impact our 2024 results.

 OVERVIEW OF CONSOLIDATED RESULTS

 Factors Affecting Comparability
 Certain transactions and changes occurred in 2022 that impact the comparability to our 2023 financial results. These transactions and changes include:

 • the sale of our Borderfree cross-border ecommerce solutions business (Borderfree) in July 2022. Accordingly, reported revenue and costs for the twelve months ended December 31, 2022 include six months of revenue and costs for Borderfree. Net income of Borderfree for these periods was not significant.
 • a change in the presentation of revenue for digital delivery services effective October 1, 2022, from a gross basis to a net basis. Accordingly, in 2023, revenue and costs of revenue for certain digital delivery services are reported on a net basis as business services revenue; whereas in 2022, revenue and cost of revenue for these services through September 30 were reported as business services revenue and cost of business services, respectively. The change primarily impacts our Global Ecommerce segment.

 Constant Currency
 In the tables below, we report the change in revenue on a reported basis and a constant currency basis. Constant currency measures exclude the impact of changes in currency exchange rates from the prior period under comparison. We believe that excluding the impacts of currency exchange rates provides investors with a better understanding of the underlying revenue performance. Constant

 currency change is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year's exchange rate.

 Financial Results Summary:

 2023
 2022
 Actual % Change
 Constant Currency % change

 $
 $
 (8)
 %
 (8)
 %

 Total costs and expenses
 3,672,850
 3,498,162
 (5)
 %

 (Loss) income before taxes
 (406,502)
 39,880
 >(100%)

 (Benefit) provision for income taxes
 (20,875)
 2,940
 >100%

 $
 (385,627)
 $
 >(100%)

 Revenue decreased $272 million in 2023 compared to the prior year primarily due to a decrease in business services revenue of $205 million (see Factors Affecting Comparability above), lower equipment sales of $31 million and lower support services revenue of $27 million.

 Total costs and expenses increased $175 million compared to the prior year primarily due to:

 • Costs of revenue (excluding financing interest expense) decreased $225 million primarily due to lower cost of business services of $178 million (see Factors Affecting Comparability above) and lower cost of equipment sales of $30 million.

 • SG&A expense declined $8 million compared to the prior year. This decrease was primarily driven by lower professional fees of $10 million, salaries of $8 million, credit cards fees of $8 million, amortization expense of $8 million and stock based compensation expense of $7 million, partially offset by proxy solicitation fees of $11 million, higher variable compensation expense of $9 million, higher credit loss provision of $8 million and non-cash foreign currency revaluation losses on intercompany loans of $6 million.

 • Restructuring charges increased $43 million compared to the prior year driven by actions taken under the 2023 Plan.

 • Aggregate non-cash goodwill impairment charges totaling $339 million associated with our Global Ecommerce reporting unit. See Note 8 to the Consolidated Financial Statements for more information.

 • Interest expense, net, including financing interest expense, increased $22 million in 2023 compared to the prior year primarily due to higher interest rates. We allocate a portion of gross interest expense to financing interest expense based on our effective interest rate and average finance receivables for the period.

 • Other (income) expense declined $19 million compared to the prior year primarily driven by prior year gains of $27 million from the sale of assets and businesses, partially offset by a favorable year-over-year impact of $8 million associated with the redemption of debt.

 The effective tax rate for the year ended December 31, 2023 was 5.1%, primarily due to the nondeductibility of the aggregate goodwill impairment charge. See Note 14 to the Consolidated Financial Statements for more information.

 Net loss for 2023 was $386 million compared to net income of $37 million in the prior year.

 SEGMENT RESULTS
 Management measures segment profitability and performance by deducting from segment revenue the related costs and expenses attributable to the segment. Segment results exclude interest, taxes, unallocated corporate expenses, restructuring charges, and other items not allocated to a business segment.
 Global Ecommerce includes the revenue and related expenses from business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment. Our domestic parcel services provide retailers domestic parcel delivery and returns services for its end consumers through our nationwide parcel sortation centers and transportation network. Our cross-border services offers our clients a range of services to manage their international shopping and parcel shipping experience. Using our digital delivery services, clients can purchase postage, print shipping labels and access shipping and tracking services from multiple carriers. Delivery and return parcels using our digital delivery services are not physically processed through our network.
 Financial performance for the Global Ecommerce segment was as follows:

 2023
 2022
 Actual % Change
 Constant Currency % change

 Business Services Revenue
 $
 $
 (14)
 %
 (14)
 %

 Cost of Business Services
 1,293,285
 1,440,807
 %

 Gross Margin
 62,041
 135,541
 (54)
 %

 Gross Margin %
 4.6
 %
 8.6
 %

 Selling, general and administrative
 184,923
 225,514
 %

 Research and development
 10,851
 10,335
 (5)
 %

 Adjusted segment EBIT
 $
 (133,733)
 $
 (100,308)
 (33)
 %

 Global Ecommerce revenue decreased $221 million in 2023 compared to the prior year. The change in revenue presentation for digital delivery services and the sale of Borderfree accounted for $139 million of the decrease. Cross-border revenue declined $190 million due to lower volumes, primarily driven by changes in how two of our largest clients access our services, digital delivery services revenue declined $26 million due to a decrease in the number of shipping labels printed and fulfillment services revenue declined $23 million due to lower volumes. These declines were partially offset by domestic parcel delivery revenue growth of $158 million, driven by an increase in domestic parcel volumes.
 Gross margin decreased $74 million and gross margin percentage decreased to 4.6% from 8.6% compared to the prior year. Cross-border services gross margin declined $52 million, primarily due to the decline in volumes. Digital delivery services gross margin declined $9 million primarily due to the decline in the number of shipping labels printed. The sale of Borderfree contributed a decline in gross margin of $8 million. Domestic parcel delivery services gross margin increased $3 million compared to the prior year primarily due to higher domestic parcel volumes, which was partially offset by $4 million of one-time costs in the third quarter related to facility consolidation.
 SG&A expenses declined $41 million compared to the prior year period, primarily due to lower employee-related expenses of $16 million, lower amortization expense of $9 million and lower credit card fees of $8 million.
 Adjusted segment EBIT was a loss of $134 million in 2023 compared to a loss of $100 million in the prior year.

 We are the largest workshare partner of the USPS and national outsource provider of mail sortation services that allow clients to qualify large volumes of First Class Mail, Marketing Mail, and Marketing Mail Flats and Bound Printed Matter for postal worksharing discounts.
 Financial performance for the Presort Services segment was as follows:

 2023
 2022
 Actual % Change
 Constant Currency % change

 Business Services Revenue
 $
 $
 %
 %

 Cost of Business Services
 432,229
 454,923
 %

 Gross Margin
 185,370
 147,093
 %

 Gross Margin %
 30.0
 %
 24.4
 %

 Selling, general and administrative
 74,230
 64,517
 (15)
 %

 Other components of net pension and postretirement costs
 (56)
 %

 Adjusted segment EBIT
 $
 110,912
 $
 82,430
 %

 Revenue increased $16 million in 2023 compared to the prior year as pricing actions to mitigate inflationary pressures on costs offset the revenue decline driven by a 6% decrease in total mail volumes. The processing of Marketing Mail Flats and Bound Printed Matter and First Class Mail contributed revenue increases of $18 million and $5 million, respectively, while the processing of Marketing Mail contributed to a revenue decrease of $7 million.
 Gross margin increased $38 million and gross margin percentage increased from 24.4% to 30.0% compared to the prior year primarily due to the increase in revenue, lower transportation costs of $15 million, driven by improvements in network management, and the benefits from investments made in automation and higher-throughput sortation equipment.
 SG&A expenses increased $10 million primarily due to higher employee-related expenses.
 Adjusted segment EBIT was $111 million in 2023 compared to $82 million in the prior year.

 SendTech Solutions provides clients with physical and digital mailing and shipping technology solutions and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats, as well as supplies and maintenance services for these offerings. We offer financing alternatives that enable clients to finance equipment and product purchases, a revolving credit solution that enables clients to make meter rental payments and purchase postage, services and supplies, and an interest-bearing deposit solution to clients who prefer to prepay postage. We also offer financing alternatives that enable clients to finance or lease other manufacturers' equipment and provide working capital.
 Financial performance for the SendTech Solutions segment was as follows:

 2023
 2022
 Actual % change
 Constant Currency % change

 $
 72,144
 $
 71,578
 %
 %

 (6)
 %
 (6)
 %

 271,197
 274,508
 (1)
 %
 (1)
 %

 323,739
 354,960
 (9)
 %
 (8)
 %

 (4)
 %
 (4)
 %

 67,900
 %
 %

 1,293,423
 1,359,679
 (5)
 %
 (5)
 %

 Cost of business services
 29,860
 37,272
 %

 Cost of support services
 136,821
 147,653
 %

 Cost of equipment sales
 222,220
 251,916
 %

 Cost of supplies
 43,140
 43,537
 %

 Cost of rentals
 19,407
 24,864
 %

 Total costs of revenue
 451,448
 505,242
 %

 Gross margin
 841,975
 854,437
 (1)
 %

 Gross margin %
 65.1
 %
 62.8
 %

 Selling, general and administrative
 418,213
 431,213
 %

 Research and development
 20,660
 22,646
 %

 Other components of pension and post retirement costs
 (2,245)
 (331)
 >(100%)

 Adjusted Segment EBIT
 $
 405,347
 $
 400,909
 %

 SendTech Solutions revenue decreased $66 million in 2023 compared to the prior year. Equipment sales declined $31 million primarily due to customers opting to extend leases of their existing advanced-technology equipment rather than purchase new equipment. Support services revenue declined $27 million primarily due to the declining meter population and continuing shift to cloud-enabled products. Supplies revenue declined $6 million primarily driven by a declining meter population. Financing revenue declined $3 million primarily due to $6 million of lower lease extensions and lower late fees of $1 million, partially offset by higher investment income of $7 million. Business services revenue increased $14 million primarily driven by growth in enterprise shipping subscriptions, which was partially offset by a $13 million reduction in revenue due to the change in revenue presentation for digital delivery services.
 Gross margin decreased $12 million primarily due to the decline in revenue. However, gross margin percentage increased to 65.1% from 62.8% compared to the prior year driven by improvements in business services gross margin due to growth in enterprise shipping subscriptions, rentals gross margin due in part to a $2 million prior year unfavorable scrap adjustment and a current year favorable adjustment and equipment sales gross margin due to cost management.
 SG&A expenses declined $13 million primarily driven by lower outsourcing and professional fees of $5 million, lower rent expense of $3 million and lower marketing expenses of $1 million.
 Adjusted segment EBIT was $405 million in 2023 compared to $401 million for the prior year.

 UNALLOCATED CORPORATE EXPENSES
 The majority of operating expenses are recorded directly or allocated to our reportable segments. Operating expenses not recorded directly or allocated to our reportable segments are reported as unallocated corporate expenses. Unallocated corporate expenses primarily represents corporate administrative functions such as finance, marketing, human resources, legal, information technology, and research and development.

 2023
 2022
 Actual % change

 Unallocated corporate expenses
 $
 210,931
 $
 204,251
 (3)
 %

 Unallocated corporate expenses for 2023 increased $7 million compared to the prior year primarily due to higher variable compensation expense of $4 million and higher depreciation expense of $2 million.

 LIQUIDITY AND CAPITAL RESOURCES
 At December 31, 2023 we had cash, cash equivalents and short-term investments of $623 million, which includes $136 million held at our foreign subsidiaries used to support the liquidity needs of those subsidiaries. Our ability to maintain adequate liquidity for our operations is dependent upon a number of factors, including revenue and earnings, our ability to manage costs and improve productivity, our clients' ability to pay their balances on a timely basis and the impacts of changing macroeconomic and geopolitical conditions. We believe that existing cash and investments, cash generated from operations and borrowing capacity under our $500 million revolving credit facility will be sufficient to fund our cash needs for the next 12 months.
 Cash Flow Summary
 The change in cash and cash equivalents is as follows:

 2023
 2022
 Increase/(decrease)

 Net cash from operating activities
 $
 79,468
 $
 175,983
 $
 (96,515)

 Net cash from investing activities
 (122,832)
 (24,269)
 (98,563)

 Net cash from financing activities
 (31,266)
 (198,083)
 166,817

 Effect of exchange rate changes on cash and cash equivalents
 5,702
 (16,130)
 21,832

 Change in cash and cash equivalents
 $
 (68,928)
 $
 (62,499)
 $
 (6,429)

 Operating activities
 Cash flows from operating activities in 2023 declined $97 million compared to the prior year. This decline was driven by lower earnings, higher interest payments of $30 million, higher restructuring payments of $19 million and higher pension contributions of $7 million, partially offset by higher collections of accounts receivables and finance receivables of $33 million, lower inventory purchases of $19 million and changes in other working capital items.
 Investing activities
 Cash flows from investing activities for 2023 declined $99 million compared to the prior year primarily due to prior year proceeds of $162 million from the sale of businesses and our Shelton, Connecticut office building, partially offset by lower payments of $28 million to settle foreign exchange derivative contracts, lower capital expenditures of $22 million and lower net investment activity of $10 million.
 Financing activities
 Cash flows from financing activities for 2023 improved $167 million compared to the prior year primarily due to lower net cash outflows from debt activity of $68 million, an increase in customer account deposits at the Bank of $90 million and $13 million of common stock repurchases in the prior year.

 Debt Activity
 During 2023, we issued an aggregate $275 million of senior secured notes. The notes mature in March 2028 and bear interest at the Secured Overnight Financing Rate (SOFR) plus 6.9%, payable quarterly. The net proceeds (net of original issue discount of 3%) were used to redeem the March 2024 notes and repay $30 million of the term loan due March 2026. Also, during 2023, we purchased an aggregate $39 million of the March 2024 notes and March 2027 notes, recognizing a gain of $3 million, and made scheduled principal repayments of $42 million on our term loans.
 The credit agreement that governs our $500 million secured revolving credit facility and the term loan due March 2026 contains certain financial covenants. These covenants require us to maintain, on a quarterly basis, a maximum leverage ratio and a minimum interest coverage ratio, both of which are defined and calculated in accordance with the credit agreement. The maximum leverage ratio decreases from 4.25x to 4.0x as of June 30, 2024 and the minimum interest coverage ratio increases from 1.75x to 2.0x as of March 31, 2025. At December 31, 2023, we were in compliance with these financial covenants. Additionally, management expects that we will remain in compliance with these financial covenants over the next twelve months. However, events and circumstances could occur, some beyond our control, that could adversely impact our compliance with these covenants and require us to seek to obtain a waiver from our lenders, modify our existing covenants or refinance certain debt to cure the noncompliance. If we are unable to cure the noncompliance, amounts due under our revolving credit facility and term loan due March 2026 could be called by our lenders. At December 31, 2023, there were no outstanding borrowings under the revolving credit facility. Borrowings under our secured debt are secured by assets of the company.

 The PB Bank (the Bank), a wholly owned subsidiary, is a member of the Federal Home Loan Bank (FHLB) of Des Moines and has access to certain credit products as a funding source known as "advances." As of December 31, 2023, the Bank had yet to apply for any advances.

 Future Cash Requirements
 The following table summarizes our known and contractually committed cash requirements at December 31, 2023 (in millions):

 Payments due in

 Total
 2024

 2025

 2026

 2027

 2028

 Debt maturities
 $
 2,189
 $
 $
 $
 $
 $
 $

 Lease obligations

 Purchase obligations
 —

 Retiree medical payments

 Total
 $
 2,849
 $
 $
 $
 $
 $
 $

 Debt
 At December 31, 2023, we have outstanding principal debt of $2.2 billion. Approximately 64% of this debt is at fixed rates, including the effect of interest rate swaps, and the remaining 36% is at variable rates. The weighted average interest rate of our variable rate debt at December 31, 2023 was 9.7%. We estimate that cash interest payments for the next 12 months will be $190 - $200 million. Required debt repayments over the next 12 months are $59 million, which we anticipate satisfying through available cash on hand and cash generated from operations. See Note 12 to the Consolidated Financial Statements for information regarding our debt.
 Lease obligations
 We lease real estate and equipment under operating and capital lease arrangements. These leases have terms of up to 15 years and include renewal options. Lease obligations in the table above do not include $17 million of payments for leases signed but not yet commenced at December 31, 2023. See Note 6 and Note 16 to the Consolidated Financial Statements for further information.
 Purchase obligations
 Purchase obligations include unrecorded open purchase orders for goods and services.
 In addition to the above known and contractually committed cash payments, we anticipate using cash for the following items:
 Capital Expenditures
 Capital expenditures are evaluated and approved by senior leadership based on several factors, including expected impacts on revenue growth, productivity enhancements, service improvements and cost savings. Capital expenditures totaled $103 million and $125 million for the years ended December 31, 2023 and 2022, respectively.
 Dividends
 Assuming the current $0.05 per quarter dividend payment, we estimate that dividend payments will be approximately $35 million in 2024. Under the terms of the March 2028 note purchase agreement, the annual amount of permitted dividend payments is capped at the lesser of $36 million or a maximum dividend yield of 6.25%. In addition, share repurchases would further limit this amount.
 Share Repurchases
 We may repurchase shares of our common stock to manage the dilution created by shares issued under employee stock plans and for other purposes. We did not repurchase any additional shares of our common stock in 2023.

 Off Balance Sheet Arrangements
 At December 31, 2023, we had approximately $28 million outstanding letters of credit guarantees with financial institutions that are primarily issued as security for insurance, leases, customs and other performance obligations. In general, we would only be liable for the amount of these guarantees in the event of default in the performance of our obligations, the probability of which we believe is remote.

 Critical Accounting Estimates
 The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions about certain items that affect the reported amounts of assets, liabilities, revenues, expenses and accompanying disclosures, including the disclosure of contingent assets and liabilities. The accounting policies below have been identified by management as those policies that are most critical to our financial statements due to the estimates and assumptions required. Management believes that the estimates and assumptions used are reasonable and appropriate based on the information available at the time the financial statements were prepared; however, actual results could differ from those estimates and assumptions. See Note 1 to the Consolidated Financial Statements for a summary of our accounting policies.

 Revenue recognition
 We derive revenue from multiple sources including the sale and lease of equipment, equipment rentals, financing, support services and business services. Certain transactions are consummated at the same time and can therefore generate revenue from multiple sources. The most common form of these arrangements involves a sale or noncancelable lease of equipment, meter services and an equipment maintenance agreement. We are required to determine whether each product and service within the contract should be treated as a separate performance obligation (unit of accounting) for revenue recognition purposes. We recognize revenue for performance obligations when control is transferred to the customer. Transfer of control may occur at a point in time or over time, depending on the nature of the contract and the performance obligation.
 Revenue is allocated among performance obligations based on relative standalone selling prices (SSP), which are a range of selling prices that we would sell the good or service to a customer on a separate basis. SSP are established for each performance obligation at the inception of the contract and can be observable prices or estimated. Revenue is allocated to the meter service and equipment maintenance agreement elements using their respective observable selling prices charged in standalone and renewal transactions. For sale and lease transactions, the SSP of the equipment is based on a range of observable selling prices in standalone transactions. We recognize revenue on non-lease transactions when control of the equipment transfers to the customer, which is upon delivery for customer installable models and upon installation or customer acceptance for other models. We recognize revenue on equipment for lease transactions upon shipment for customer installable models and upon installation or customer acceptance for other models.

 Impairment review
 Goodwill is tested annually for impairment at the reporting unit level at the beginning of the fourth quarter or sooner if circumstances indicate an impairment may exist. The impairment test for goodwill determines the fair value of each reporting unit and compares it to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired, If the fair value of the reporting unit is less than the carrying value of the net assets assigned to the reporting unit, a goodwill impairment loss is calculated as the difference between these amounts, limited to the amount of goodwill allocated to the reporting unit.
 Testing goodwill for impairment requires us to identify our reporting units and assign assets and liabilities, including goodwill, to each reporting unit. The fair value of a reporting unit is based on one or a combination of techniques, including a discounted cash flow model, multiples of competitors, and/or multiples from sales of like businesses.
 The performance of our Global Ecommerce reporting unit, continuing changes in macroeconomic conditions and our long-term outlook for this business were triggering events that caused us to evaluate the Global Ecommerce goodwill for impairment during the second and fourth quarters. To assess Global Ecommerce goodwill for impairment, we determined the fair value of the reporting unit and compared it to the unit's carrying value, including goodwill. We engaged a third party to assist in the determination of the fair value of the reporting unit. The fair value was estimated using a discounted cash flow model based on management developed cash flow projections, which included judgements and assumptions related to revenue growth rates, operating margins, operating income, and a discount rate. The estimates and assumptions are considered Level 3 inputs under the fair value hierarchy. We assessed Global Ecommerce goodwill for impairment in the second and fourth quarters, and based on the results of our assessments, recorded non-cash, pre-tax goodwill impairment charges of $119 million and $220 million, respectively.
 The results of our annual impairment test as of the beginning of the fourth quarter for our other reporting units indicated that the fair value of these reporting units exceeded their carrying values and no impairment existed.
 Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The estimated future undiscounted cash flows expected to result from the use and eventual disposition of the assets is compared to the carrying value. If the sum of the undiscounted cash flows is less than the asset's carrying value, an impairment charge is recorded for an amount by which the carrying value exceeds its fair value. The fair value of the impaired asset is determined using probability weighted expected cash flow estimates, quoted market prices when available and appraisals, as appropriate. We derive the cash flow estimates from our long-term business plans and historical experience. Changes in

 the estimates and assumptions incorporated in our impairment assessment could materially affect the determination of fair value and the associated impairment charge.

 Allowances for credit losses
 Finance receivables are comprised of sales-type leases, secured loans and unsecured revolving loans. We provide an allowance for probable credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay and current economic conditions and outlook based on reasonable and supportable forecasts. Total allowance for credit losses as a percentage of finance receivables was 2% at both December 31, 2023 and 2022. Holding all other assumptions constant, a 0.25% increase in the allowance rate at December 31, 2023 would have reduced pre-tax income by $3 million.
 Trade accounts receivable are generally due within 30 days after the invoice date. We provide an allowance for credit losses based on historical loss experience, the age of the receivables, specific troubled accounts and other currently available information. Accounts deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible, or when they are 365 days past due, if sooner. The allowance for credit losses as a percentage of trade accounts receivables was 2% at both December 31, 2023 and 2022. Holding all other assumptions constant, a 0.25% increase in the allowance rate at December 31, 2023 would have reduced pre-tax income by $1 million.

 Income taxes and valuation allowance
 We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our annual tax rate is based on income, statutory tax rates, tax reserve changes and tax planning opportunities available to us in the various jurisdictions in which we operate. Significant judgment is required in determining the annual tax rate and in evaluating our tax positions. We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we have operations and account for the related financial statement implications. We have established tax reserves that we believe are appropriate given the possibility of tax adjustments. Determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax laws. Reserves are adjusted when information becomes available or when an event occurs indicating a change in the reserve is appropriate. Changes in tax reserves could have a material impact on our financial condition or results of operations.
 Significant judgment is also required in determining the amount of deferred tax assets that will ultimately be realized and corresponding deferred tax asset valuation allowance. When estimating the necessary valuation allowance, we consider all available evidence for each jurisdiction including historical operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. If new information becomes available that would alter our estimate of the amount of deferred tax assets that will ultimately be realized, we adjust the valuation allowance through income tax expense. Changes in the deferred tax asset valuation allowance could have a material impact on our financial condition or results of operations.

 Pension benefits
 The calculation of net periodic pension expense and determination of net pension obligations are dependent on assumptions and estimates relating to, among other things, the discount rate (interest rate used to discount the future estimated liability) and the expected rate of return on plan assets. These assumptions are evaluated and updated annually.
 The discount rate for our largest plan, the U.S. Qualified Pension Plan (the U.S. Plan) and our largest foreign plan, the U.K. Qualified Pension Plan (the U.K. Plan) used to determine net periodic pension expense for 2023 was 5.55% and 4.80%, respectively. The discount rate used to determine 2024 net periodic pension expense for the U.S. Plan and the U.K. Plan was 5.15% and 4.5%, respectively. A 0.25% change in the discount rate would not materially impact annual pension expense for the U.S. Plan or the U.K. Plan. A 0.25% change in the discount rate would impact the projected benefit obligation of the U.S. Plan and U.K. Plan by $24 million and $13 million, respectively.
 The expected rate of return on plan assets used to determine net periodic pension expense for 2023 was 6.5% for the U.S. Plan and 5.26% for the U.K. Plan. The expected rate of return on plan assets used to determine 2024 net periodic pension expense was 6.7% and 5.5% for the U.S. Plan and the U.K. Plan, respectively. A 0.25% change in the expected rate of return on plan assets would impact annual pension expense for the U.S. Plan by $3 million and the U.K. Plan by $1 million.
 Actual pension plan results that differ from our assumptions and estimates are accumulated and amortized primarily over the life expectancy of plan participants and affect future pension expense. Net pension expense is also based on a market-related valuation of plan assets where differences between the actual and expected return on plan assets are recognized over a five-year period. Plan benefits for participants in a majority of our U.S. and foreign pension plans are frozen.

 Residual value of leased assets
 Equipment residual values are determined at the inception of the lease using estimates of the equipment's fair value at the end of the lease term. Residual value estimates impact the determination of whether a lease is classified as an operating lease or a sales-type lease. Fair value estimates of equipment at the end of the lease term are based on historical renewal experience, used equipment markets, competition and technological changes.
 We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Increases in estimated future residual values are not recognized until the equipment is remarketed. If the actual residual value of leased assets were 10% lower than management's current estimates and considered "other-than-temporary", pre-tax income would be $5 million lower.

 Legal and Regulatory Matters
 See Regulatory Matters in Item 1 and Other Tax Matters in Note 14 to the Consolidated Financial Statements for regulatory matters regarding our tax returns and Note 15 to the Consolidated Financial Statements for information regarding our legal proceedings.

 Foreign Currency Exchange
 The functional currency for most of our foreign operations is the local currency. Changes in the value of the U.S. dollar relative to the currencies of countries in which we operate impact our reported assets, liabilities, revenue and expenses. Exchange rate fluctuations can also impact the settlement of intercompany receivables and payables between our subsidiaries in different countries. During 2023, 11% of our consolidated revenue was from operations outside the United States and the translation of foreign currencies to the U.S. dollar did not have a material impact on revenues or operating results for the year ended December 31, 2023.

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 We are exposed to market risks primarily from changes in foreign currency exchange rates and interest rates. To manage these market risks, we may employ derivatives according to established policies and procedures. We do not use derivatives for speculative purposes. We are also exposed to credit risk on our accounts receivable and finance receivable portfolio.

 Foreign Exchange Risk
 We have a number of short-term intercompany loans denominated in a foreign currency, predominantly the British Pound, Canadian Dollar and Euro. Our foreign currency risk primarily includes the periodic revaluation of these intercompany loans and related interest, which is recorded in earnings.
 Historically, we entered into foreign exchange contracts to minimize the impact of the revaluation of these intercompany loans and related interest on earnings. Changes in fair value of these foreign exchange contracts were also recorded in earnings and designed to generally offset the impact to earnings from the revaluation of the underlying intercompany loans. While there was typically minimal impact to earnings, the settlement of these derivative contracts resulted in cash outflows or inflows, which could be significant.
 In the fourth quarter of 2023, management decided to no longer use foreign exchange contracts to hedge the revaluation of intercompany loans and related interest. While this decision reduces volatility in cash flows, the periodic revaluation of these intercompany loans could result in significant non-cash charges or income in earnings. Assuming foreign currency exchange rates at December 31, 2023, a 1% change in the British Pound, Canadian Dollar or Euro would impact earnings by $5 million, $3 million and $2 million, respectively.
 We are also exposed to foreign currency risks associated with transactions denominated in currencies other than a location's functional currency and forecasted inventory purchases between affiliates and third parties. However, these risks are not deemed to be significant.

 Interest Rate Risk
 We are exposed to interest rate risk on our variable-rate debt borrowings. The weighted average interest rate of our variable rate debt at December 31, 2023 and 2022 was 9.7% and 7.5%, respectively. A 100 basis point change in the weighted average interest rate of our variable rate debt in 2023 would have increased interest expense approximately $8 million.
 We also maintain a significant investment portfolio comprised of fixed-rate investment in government and municipal securities, corporate securities, mortgage-backed securities and asset-backed securities. Changes in interest rates impact the fair value of these investments. We have designated these securities as available-for-sale, and changes in fair value due to changes in interest rates are recognized in accumulated other comprehensive income, a component of equity, and not earnings. We do not expect to recognize impairment losses on investment securities in an unrealized loss position as we have the intent and ability to hold these securities until recovery of unrealized losses or maturity.

 Credit Risk
 We are exposed to credit risk on our accounts receivable and finance receivable balances. This risk is mitigated due to our large, diverse client base, dispersed over various geographic regions and industrial sectors. No single client comprised more than 10% of our consolidated net sales in 2023 or 2022. We maintain provisions for potential credit losses based on historical experience, age of receivable, current economic conditions and future outlook and other relevant factors that may impact our customers' ability to pay. We continually evaluate the adequacy of our allowance for credit losses and adjust as necessary.

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 See "Index to Consolidated Financial Statements and Schedules" in this Form 10-K.

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
 None.

 ITEM 9A. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
 We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), that are designed to reasonably assure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and to reasonably assure that such information is accumulated and communicated to management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), to allow timely decisions regarding required disclosure.
 Any system of controls and procedures, no matter how well designed and operated, can provide only reasonable (and not absolute) assurance of achieving the desired control objectives. Under the direction of our CEO and CFO, management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as required by Rule 13a-15 or Rule 15d-15 under the Exchange Act. Notwithstanding this caution, the CEO and CFO have reasonable assurance that the disclosure controls and procedures were effective as of December 31, 2023.

 Management's Report on Internal Control over Financial Reporting
 Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Management assessed the effectiveness of the internal control over financial reporting as of December 31, 2023 under the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013) and concluded that the internal control over financial reporting was effective.
 The effectiveness of our internal control over financial reporting as of December 31, 2023 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report in this Form 10-K.

 Changes in Internal Control over Financial Reporting
 There have been no changes in our internal control over financial reporting during the three months ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, such internal control over financial reporting.

 ITEM 9B. OTHER INFORMATION
 None.

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
 None.

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
 Other than information regarding our executive officers disclosed in Part I of this Annual Report and information regarding our directors as shown below, the information required by this Item is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 Title

 Mary J. Steele Guilfoile

 Chair, MG Advisors, Inc.

 Steven D. Brill

 Retired President of Corporate Strategy at United Parcel Service, Inc

 Todd Everett

 Independent advisor to several ecommerce companies, including Doddle Parcel Services Limited, Verishop, Inc., and Fetch Package, Inc

 Katie May

 Former Chief Executive Officer, ShippingEasy

 Milena Alberti-Perez

 Former Chief Financial Officer of Getty Images, Inc

 Sheila A. Stamps

 Former Financial Services Executive & Former Commissioner and Audit Committee Chair, New York State Insurance Fund

 Darrell Thomas

 Retired Vice President and Treasurer for Harley-Davison, Inc.

 Kurt Wolf

 Managing Member and Chief Investment Officer of Hestia Capital Management

 William S. Simon

 President of WSS Venture Holdings, LLC

 Jill Sutton

 Former Chief Legal Officer, General Counsel and Corporate Secretary of United Natural Foods, Inc.

 Code of Ethics
 We have Business Practices Guidelines (BPG) that apply to all our officers and other employees and a Code of Business Conduct and Ethics (the Code) that applies to our Board of Directors. The BPG and the Code are posted on our corporate governance website located at www.pb.com/us/our-company/leadership-and-governance/corporate-governance.html. Amendments to either the BPG or the Code and any waiver from a provision of the BPG or the Code requiring disclosure will be disclosed on our corporate governance website.

 Audit Committee - Audit Committee Financial Expert
 The information regarding the Audit Committee, its members and the Audit Committee financial experts is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 ITEM 11. EXECUTIVE COMPENSATION
 The information required by this Item is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 EQUITY COMPENSATION PLAN INFORMATION TABLE

 The following table provides information as of December 31, 2023 regarding the number of shares of common stock that may be issued under our equity compensation plans.

 Plan Category
 (a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1)
 (b)
Weighted-average exercise price of outstanding options, warrants and rights (2)
 (c)
Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a)

 Equity compensation plans approved by security holders

 15,488,458
 $9.50
 15,950,013

 Equity compensation plans not approved by security holders

 —
 —
 —

 Total
 15,488,458
 $9.50
 15,950,013

 (1) Includes outstanding restricted stock units, stock options and performance stock units.
 (2) Weighted average exercise price of stock options only.

 Other than information regarding securities authorized for issuance under equity compensation plans, the information required by this Item is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
 The information required by this Item is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
 The information required by this Item is incorporated by reference to our Proxy Statement to be filed in connection with the 2024 Annual Meeting of Stockholders.

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 (a)(1) Index to Consolidated Financial Statements and Schedules

 Page Number in Form 10-K

 Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2023, 2022 and 2021

 Consolidated Balance Sheets at December 31, 2023 and 2022

 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Stockholders' (Deficit) Equity for the years ended December 31, 2023, 2022 and 2021

 Notes to Consolidated Financial Statements

 Schedule II - Valuation and Qualifying Accounts and Reserves for the years ended December 31, 2023, 2022 and 2021

 (a)(2) Exhibits

 Reg. S-K
 exhibits

 Description
 Status or incorporation by reference

 3(a)
 Amended and Restated Certificate of Incorporation of Pitney Bowes Inc.
 Incorporated by reference to Exhibit 3(i)(a) to Form 8-K filed with the Commission on September 30, 2019 (Commission file number 1-3579)

 3(b)
 Pitney Bowes Inc. Amended and Restated By-laws (effective May 10, 2013)
 Incorporated by reference to Exhibit 3(d) to Form 8-K filed with the Commission on May 13, 2013 (Commission file number 1-3579)

 Description of Registered Securities
 Exhibit 4

 4(a)
 Senior Debt Indenture, dated as of February 14, 2005, by and between the Company and Citibank N.A., as trustee
 Incorporated by reference to Exhibit 4(a) to Registration Statement on Form S-3 filed with the Commission on June 18, 2008 (Commission file number 1-3579)

 4(b)
 First Supplemental Indenture, dated as of October 23, 2007, by and among Pitney Bowes Inc., The Bank of New York, as successor trustee, and Citibank, N.A., as resigning trustee
 Incorporated by reference to Exhibit 4.1 to Form 8-K filed with the Commission on October 24, 2007 (Commission file number 1-3579)

 4(c)
 Supplemental Indenture No. 2 dated as of February 26, 2020, by and between Pitney Bowes Inc. and The Bank of New York Mellon, as successor trustee to Citibank N.A.
 Incorporated by reference to Exhibit 4.1 to Form 8-K filed with the Commission on February 26, 2020 (Commission file number 1-3579)

 4(d)
 Form of 5.25% Global Medium-Term Note due 2037
 Incorporated by reference to Exhibit 4(d)(1) to Form 8-K filed with the Commission on November 16, 2006 (Commission file number 1-3579)

 4(e)
 Officer's Certificate establishing the terms of the Notes, dated March 7, 2013, and Specimen of 6.70% Notes due 2043
 Incorporated by reference to Exhibits 4.1 and 4.2 to Form 8-K filed with the Commission on March 7, 2013 (Commission file number 1-3579)

 4(f)
 Officer's Certificate establishing the terms of the 4.625% Notes due 2024, dated March 13, 2014, and Specimen of 4.625% Notes due 2024.
 Incorporated by reference to Exhibits 4.1 and 4.2 to Form 8-K filed with the Commission on March 13, 2014 (Commission file number 1-3579)

 4(g)
 Indenture, dated March 19, 2021, among Pitney Bowes Inc., the guarantors party thereto and Truist Bank, as trustee, with respect to Pitney Bowes Inc.'s 6.875% Senior Notes due 2027.
 Incorporated by reference to Exhibit 4.1 to the Form 8-K filed with the Commission on March 23, 2021 (Commission file number 1-3579).

 4(h)
 Indenture, dated March 19, 2021, among Pitney Bowes Inc., the guarantors party thereto and Truist Bank, as trustee, with respect to Pitney Bowes Inc.'s 7.250% Senior Notes due 2029.
 Incorporated by reference to Exhibit 4.2 to the Form 8-K filed with the Commission on March 23, 2021 (Commission file number 1-3579).

 4(i)

 Note Purchase Agreement, dated as of July 31, 2023, by and among Pitney Bowes Inc., the noteholders party thereto and Alter Domus (US) LLC, as noteholder representative

 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on July 31, 2023 (Commission file number 1-3579)

 10(a) *
 Retirement Plan for Directors of Pitney Bowes Inc.
 Incorporated by reference to Exhibit 10(a) to Form 10-K filed with the Commission on March 30, 1993 (Commission file number 1-3579)

 10(b) *

 Pitney Bowes Inc. Directors' Stock Plan (as amended and restated September 11, 2023)

 Incorporated by reference to Exhibit 10.10 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(c) *

 Pitney Bowes Inc. 2007 Stock Plan (as amended November 7, 2009)
 Incorporated by reference to Exhibit (v) to Form 10-K filed with the Commission on February 26, 2010 (Commission file number 1-3579)

 Reg. S-K
 exhibits

 Description
 Status or incorporation by reference

 10(d) *

 Pitney Bowes Inc. Key Employees' Incentive Plan (as amended and restated September 11, 2023)

 Incorporated by reference to Exhibit 10.5 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(e) *

 Pitney Bowes Severance Plan (as amended and restated as of October 1, 2023)

 Exhibit 10(e)

 10(f) *

 Pitney Bowes Senior Executive Severance Policy (as amended and restated as of September 11, 2023)

 Incorporated by reference to Exhibit 10.6 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(g) *

 Pitney Bowes Inc. Deferred Incentive Savings Plan for the Board of Directors (as amended and restated September 11, 2023)

 Incorporated by reference to Exhibit 10.11 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(h) *

 Pitney Bowes Inc. Deferred Incentive Savings Plan (as amended and restated effective September 11, 2023)
 Incorporated by reference to Exhibit 10.7 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(i) *

 Form of Long Term Incentive Award Agreement
 Incorporated by reference to Exhibit 10(k) to Form 10-K filed with the Commission on February 25, 2013 (Commission file number 1-3579)

 10(j)*

 Pitney Bowes Director Equity Deferral plan dated November 8, 2013 (effective May 12, 2014)
 Incorporated by reference to Exhibit 10(o) to Form 10-K filed with the Commission on February 22, 2016 (Commission file number 1-3579)

 10(k)*

 Pitney Bowes Executive Equity Deferral Plan (as amended and restated September 11, 2023)

 Incorporated by reference to Exhibit 10.8 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(l)*

 Pitney Bowes Inc. 2013 Stock Plan
 Incorporated by reference to Annex A to the Definitive Proxy Statement for the 2013 Annual Meeting of Stockholders filed with the Commission on March 25, 2013 (Commission file number 1-3579)

 10(m)*

 Amended and Restated Pitney Bowes Inc. 2018 Stock Plan (as amended and restated September 11, 2023)

 Incorporated by reference to Exhibit 10.9 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 10(n)

 Credit Agreement, dated as of November 1, 2019 (the "Credit Agreement"), among the company, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent.
 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on November 5, 2019 (Commission file number 1-3579)

 10(o)

 First Incremental Facility Amendment, dated as of February 19, 2020, to the Credit Agreement, among the company, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., administrative agent.
 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on February 20, 2020 (Commission file number 1-3579)

 10(p)

 First Amendment, dated as of March 19, 2021, among Pitney Bowes Inc., the subsidiaries of Pitney Bowes Inc. party thereto, the lenders and issuing banks party thereto, and JPMorgan Chase Bank, N.A., as administrative agent
 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on March 23, 2021 (Commission file number 1-3579)

 10(q)

 First Refinancing Agreement, dated as of March 19, 2021, among Pitney Bowes Inc., the subsidiaries of Pitney Bowes Inc. party thereto and JPMorgan Chase Bank, N.A., as administrative agent and refinancing tranche B term lender.
 Incorporated by reference to Exhibit 10.2 to the Form 8-K filed with the Commission on March 23, 2021 (Commission file number 1-3579)

 10(r)

 Second Amendment, dated as of May 11, 2022, to the Credit Agreement, among Pitney Bowes Inc., the Lenders and issuing banks party thereto and JP Morgan Chase, N.A., as administrative agent
 Incorporated by reference to Exhibit 10.1 to the Form 10-Q filed with the Commission on November 4, 2022 (Commission file number 1-3579)

 10(s)

 Third Amendment, dated as of December 7, 2022, to the Credit Agreement, among Pitney Bowes Inc., the Lenders and issuing banks party thereto and JP Morgan Chase, N.A., as administrative agent.
 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on December 8, 2022 (Commission file number 1-3579)

 10(t)

 Fourth Amendment, dated as of December 8, 2022, to the Credit Agreement, among Pitney Bowes Inc., the Lenders and issuing banks party thereto and JP Morgan Chase, N.A., as administrative agent
 Incorporated by reference to Exhibit 10(x) to the Form 10-K filed with the Commission on February 17, 2023 (Commission file number 1-3579)

 10(u)

 Fifth Amendment, dated as of June 6, 2023, among Pitney Bowes Inc., the subsidiaries of Pitney Bowes Inc. party thereto, the lenders and issuing banks party thereto, and JP Morgan Chase Bank, N.A., as administrative agent

 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on June 6, 2023 (Commission file number 1-3579)

 10(v)

 Sixth Amendment, dated as of July 31, 2023, among Pitney Bowes Inc., the subsidiaries of Pitney Bowes Inc. party thereto, the lenders and issuing banks party thereto, and JP Morgan Chase Bank, N.A., as administrative agent

 Incorporated by reference to Exhibit 10.2 to the Form 8-K filed with the Commission on July 31, 2023 (Commission file number 1-3579)

 Reg. S-K
 exhibits

 Description
 Status or incorporation by reference

 10(w)

 Separation Agreement and General Release, dated as of September 29, 2023, between Pitney Bowes Inc. and Marc Lautenbach

 Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Commission on October 2, 2023 (Commission file number 1-3579)

 10(x)

 Letter Agreement, dated as of September 29, 2023, between Pitney Bowes Inc. and Jason Dies

 Incorporated by reference to Exhibit 10.2 to the Form 8-K filed with the Commission on October 2, 2023 (Commission file number 1-3579)

 Subsidiaries of the registrant
 Exhibit 21

 Consent of independent registered accounting firm
 Exhibit 23

 31.1
 Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
 Exhibit 31.1

 31.2
 Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
 Exhibit 31.2

 32.1
 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350
 Exhibit 32.1

 32.2
 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350
 Exhibit 32.2

 Compensation Recoupment Policy of Pitney Bowes Inc. dated December 1, 2023

 Incorporated by reference to Exhibit 10.12 to Form 10-Q filed with the Commission on November 2, 2023 (Commission file number 1-3579)

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 * The Exhibits identified above with an asterisk (*) are management contracts or compensatory plans or arrangements.

 The Company has certain outstanding long-term indebtedness that does not exceed 10% of the total assets of the Company; therefore, copies of instruments defining the rights of holders of such indebtedness are not included as exhibits. The Company agrees to furnish copies of such instruments to the SEC upon request.

 ITEM 16. FORM 10-K SUMMARY
 None

 SIGNATURES
 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 Date: February 20, 2024 PITNEY BOWES INC.
 Registrant

 By: /s/ Jason C. Dies
 Jason C. Dies
 Interim Chief Executive Officer

 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 Signature
 Title
 Date

 /s/ Jason C. Dies
 Jason C. Dies

 Interim Chief Executive Officer (Principal Executive Officer)

 /s/ Ana Maria Chadwick
Ana Maria Chadwick

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

 /s/ Joseph R. Catapano
 Joseph R. Catapano

 Vice President, Chief Accounting Officer (Principal Accounting Officer)

 /s/ Mary J. Steele Guilfoile
 Mary J. Steele Guilfoile

 Non-Executive Chairman - Director

 /s/ Steven D. Brill
 Steven D. Brill

 /s/ Todd Everett
 Todd Everett

 /s/ Katie May
 Katie May

 /s/ Milena Alberti-Perez
 Milena Alberti-Perez

 /s/ Sheila A. Stamps
 Sheila A. Stamps

 /s/ Darrell Thomas
 Darrell Thomas

 /s/ Kurt Wolf
 Kurt Wolf

 /s/ William S. Simon
 William S. Simon

 /s/ Jill Sutton
 Jill Sutton

 Page Number

 Report of Independent Registered Public Accounting Firm (PCAOB ID: 238)

 Consolidated Financial Statements of Pitney Bowes Inc.

 Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2023, 2022 and 2021

 Consolidated Balance Sheets at December 31, 2023 and 2022

 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Stockholders' (Deficit) Equity for the years ended December 31, 2023, 2022 and 2021

 Notes to Consolidated Financial Statements

 Financial Statement Schedule

 Schedule II - Valuation and Qualifying Accounts and Reserves for the years ended December 31, 2023, 2022 and 2021

 Report of Independent Registered Public Accounting Firm
 To the Board of Directors and Stockholders of Pitney Bowes Inc.
 Opinions on the Financial Statements and Internal Control over Financial Reporting
 We have audited the accompanying consolidated balance sheets of Pitney Bowes Inc. and its subsidiaries (the "Company") as of December 31, 2023 and 2022, and the related consolidated statements of operations, comprehensive (loss) income, stockholders' (deficit) equity and cash flows for each of the three years in the period ended December 31, 2023, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(1) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
 In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

 Basis for Opinions
 The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
 Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

 Definition and Limitations of Internal Control over Financial Reporting
 A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 Critical Audit Matters
 The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
 Goodwill Impairment Triggering Event Assessments – Global Ecommerce Reporting Unit
 As described in Notes 1 and 8 to the consolidated financial statements, the Company's consolidated goodwill balance was $734 million as of December 31, 2023, and the goodwill balance associated with the Global Ecommerce reporting unit was zero. Goodwill is tested annually for impairment at the reporting unit level as of the beginning of the fourth quarter or sooner if circumstances indicate an impairment may exist. The impairment test for goodwill determines the fair value of each reporting unit and compares it to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit is less than the carrying value of the net assets assigned to the reporting unit, a goodwill impairment loss is calculated as the difference between these amounts, limited to the amount of goodwill allocated to the reporting unit. The performance of the Global Ecommerce reporting unit, continuing changes in macroeconomic conditions and the long-term outlook for the business were triggering events that caused management to evaluate the Global Ecommerce goodwill for impairment during the second and fourth quarters 0f 2023. The assessments indicated that the estimated fair value of the reporting unit was less than the carrying value and management recorded a non-cash, pre-tax goodwill impairment charge of $119 million and $220 million in the second and fourth quarter, respectively. The fair value was estimated using a discounted cash flow model based on management developed cash flow projections, which included judgments and assumptions related to revenue growth rates, operating margins, operating income, and the discount rate.
 The principal considerations for our determination that performing procedures relating to the goodwill impairment triggering event assessments of the Global Ecommerce reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimates of the Global Ecommerce reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to revenue growth rates, certain forecasted costs included in the determination of projected operating margins and operating income, and the discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
 Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management's goodwill impairment assessments, including controls over the valuation of the Global Ecommerce reporting unit. These procedures also included, among others, (i) testing management's process for developing the fair value estimates of the reporting unit; (ii) evaluating the appropriateness of the discounted cash flow model used by management; (iii) testing the completeness and accuracy of underlying data used in the discounted cash flow model; and (iv) evaluating the reasonableness of the significant assumptions used by management related to revenue growth rates, certain forecasted costs included in the determination of projected operating margins and operating income, and the discount rate. Evaluating management's assumptions related to revenue growth rates and certain forecasted costs included in the determination of projected operating margins and operating income involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the reporting unit, (ii) the consistency with external market and industry data, and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the discounted cash flow model and the reasonableness of the discount rate assumption.

 /s/ PricewaterhouseCoopers LLP
 Stamford, Connecticut

 We have served as the Company's auditor since 1934.

 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)

 2023
 2022
 2021

 Revenue:

 $
 2,045,069
 $
 2,249,941
 $
 2,334,674

 460,888

 271,197
 274,508
 294,418

 323,739
 354,960
 350,138

 159,438

 67,900
 74,005

 Costs and expenses:

 Cost of business services
 1,756,616
 1,934,206
 2,034,477

 Cost of support services
 137,676
 148,829
 149,706

 Financing interest expense
 63,281
 51,789
 47,059

 Cost of equipment sales
 223,757
 253,843
 251,914

 Cost of supplies
 43,347
 43,778
 43,980

 Cost of rentals
 19,614
 25,105
 24,427

 Selling, general and administrative
 897,260
 905,570
 924,163

 Research and development
 41,405
 43,657
 46,777

 Restructuring charges

 61,585
 19,003

 Goodwill impairment
 339,184
 —
 —

 Interest expense, net
 100,445
 89,980
 96,886

 Other components of net pension and postretirement (income) cost

 ( 8,256)
 4,308
 1,010

 Other (income) expense
 ( 3,064)
 ( 21,618)
 41,574

 Total costs and expenses
 3,672,850
 3,498,162
 3,680,976

 (Loss) income from continuing operations before income taxes

 ( 406,502)
 39,880
 ( 7,415)

 (Benefit) provision for income taxes

 ( 20,875)
 2,940
 ( 10,922)

 (Loss) income from continuing operations

 3,507

 Loss from discontinued operations, net of tax

 —
 —
 ( 4,858)

 $
 $
 $

 Basic (loss) earnings per share attributable to common stockholders (1):

 Continuing operations
 $
 $
 0.21
 $
 0.02

 Discontinued operations
 —
 —
 ( 0.03)

 $
 $
 0.21
 $
 ( 0.01)

 Diluted (loss) earnings per share attributable to common stockholders (1):

 Continuing operations
 $
 $
 0.21
 $
 0.02

 Discontinued operations
 —
 —
 ( 0.03)

 $
 $
 0.21
 $
 ( 0.01)

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

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
 (In thousands)

 2023
 2022
 2021

 $
 $
 $

 Other comprehensive (loss) income, net of tax:

 Foreign currency translations, net of tax of $( 741), $( 3,942) and $( 767), respectively

 25,279
 ( 71,344)
 ( 34,168)

 Net (loss) gain on cash flow hedges, net of tax of $( 1,847), $ 2,900 and $ 1,738, respectively

 ( 5,541)
 8,700
 5,214

 Net unrealized gain (loss) on available for sale securities, net of tax of $ 1,878, $( 10,424) and $( 2,217), respectively

 5,977
 ( 33,191)
 ( 6,651)

 Adjustments to pension and postretirement plans, net of tax of $( 18,875), $ 4,312 and $ 17,986, respectively

 ( 55,128)
 9,297
 54,618

 Amortization of pension and postretirement costs, net of tax of $ 4,461, $ 9,315 and $ 12,755, respectively

 13,732
 31,286
 39,806

 Other comprehensive (loss) income, net of tax
 ( 15,681)
 ( 55,252)
 58,819

 Comprehensive (loss) income
 $
 ( 401,308)
 $
 ( 18,312)
 $
 57,468

 CONSOLIDATED BALANCE SHEETS
 (In thousands, except per share amount)

 ASSETS

 Current assets:

 Cash and cash equivalents
 $
 601,053
 $
 669,981

 Short-term investments (includes $ 2,382 and $ 1,882, respectively, reported at fair value)

 22,166
 11,172

 Accounts and other receivables (net of allowance of $ 6,139 and $ 5,344 respectively)

 342,236
 343,557

 Short-term finance receivables (net of allowance of $ 14,347 and $ 11,395, respectively)

 563,536
 564,972

 Inventories
 70,053
 83,720

 Current income taxes
 8,790

 92,309
 115,824

 Total current assets
 1,691,917
 1,798,016

 Property, plant and equipment, net
 383,628
 420,672

 Rental property and equipment, net
 23,583
 27,487

 Long-term finance receivables (net of allowance of $ 8,880 and $ 10,555, respectively)

 653,085
 627,124

 Goodwill
 734,409
 1,066,951

 Intangible assets, net
 62,250
 77,944

 Operating lease assets
 309,958
 296,129

 Noncurrent income taxes
 60,995
 46,613

 Other assets (includes $ 227,131 and $ 229,936, respectively, reported at fair value)

 352,360
 380,419

 Total assets
 $
 4,272,185
 $
 4,741,355

 LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

 Current liabilities:

 $
 875,476
 $
 907,083

 Customer deposits at the Bank
 640,323
 628,072

 Current operating lease liabilities
 60,069
 52,576

 Current portion of long-term debt
 58,931
 32,764

 Advance billings
 89,087
 105,207

 Current income taxes
 6,523
 2,101

 Total current liabilities
 1,730,409
 1,727,803

 Long-term debt
 2,087,101
 2,172,502

 Deferred taxes on income
 211,477
 263,131

 Tax uncertainties and other income tax liabilities
 19,091
 23,841

 Noncurrent operating lease liabilities
 277,981
 265,696

 Other noncurrent liabilities
 314,702
 227,729

 Total liabilities
 4,640,761
 4,680,702

 Commitments and contingencies (See Note 15)

 Stockholders' (deficit) equity:

 Common stock, $ 1 par value ( 480,000 shares authorized; 270,338 and 323,338 shares issued, respectively)

 270,338
 323,338

 Retained earnings
 3,077,988
 5,125,677

 Accumulated other comprehensive loss
 ( 851,245)
 ( 835,564)

 Treasury stock, at cost ( 93,972 and 149,307 shares, respectively)

 ( 2,865,657)
 ( 4,552,798)

 Total stockholders' (deficit) equity

 ( 368,576)
 60,653

 Total liabilities and stockholders' (deficit) equity

 $
 4,272,185
 $
 4,741,355

 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)

 2023
 2022
 2021

 Cash flows from operating activities:

 $
 $
 $

 Loss from discontinued operations, net of tax

 —
 —
 4,858

 Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 Depreciation and amortization
 160,430
 163,816
 162,859

 Allowance for credit losses
 16,687
 8,937
 7,808

 Stock-based compensation
 9,597
 16,629
 20,862

 Amortization of debt fees
 10,698
 8,674
 7,163

 (Gain) loss on debt redemption/refinancing

 ( 3,064)
 4,993
 56,209

 Restructuring charges

 61,585
 19,003

 Restructuring payments
 ( 34,443)
 ( 15,406)
 ( 21,990)

 Pension contributions and retiree medical payments
 ( 33,815)
 ( 26,769)
 ( 27,534)

 Gain on sale of businesses, including transaction costs
 —
 ( 12,205)
 ( 10,201)

 Gain on sale of assets
 —
 ( 14,372)
 ( 1,434)

 Goodwill impairment
 339,184
 —
 —

 Deferred taxes
 ( 50,815)
 3,688
 ( 19,883)

 Other, net

 6,040
 13,997
 9,179

 Changes in operating assets and liabilities, net of acquisitions/divestitures:

 Accounts and other receivables
 ( 6,027)
 ( 29,303)
 37,503

 Finance receivables
 ( 2,646)
 ( 12,591)
 20,934

 Inventories
 14,293
 ( 4,942)
 ( 8,008)

 30,841
 2,727
 ( 1,184)

 ( 43,110)
 18,577
 57,780

 Current and noncurrent income taxes
 6,904
 ( 14,464)
 2,971

 Advance billings
 ( 17,244)
 8,342
 ( 14,029)

 Net cash from operating activities
 79,468
 175,983
 301,515

 Cash flows from investing activities:

 Capital expenditures
 ( 102,878)
 ( 124,840)
 ( 184,042)

 Purchases of investment securities
 ( 18,887)
 ( 8,863)
 ( 74,923)

 Proceeds from sales/maturities of investment securities
 25,390
 28,724
 97,358

 Net investment in loan receivables
 ( 29,754)
 ( 53,114)
 ( 6,288)

 Proceeds from sale of business, net of cash sold
 —
 111,593
 27,573

 Proceeds from asset sales
 —
 50,766
 1,840

 Acquisitions, net of cash acquired
 —
 ( 5,139)
 ( 14,996)

 Settlement of derivative contracts
 ( 27,660)
 —

 Other investing activities, net

 2,870
 4,264
 —

 Net cash from investing activities: continuing operations
 ( 122,832)
 ( 24,269)
 ( 153,478)

 Net cash from investing activities: discontinued operations
 —
 —
 ( 1,773)

 Net cash from investing activities
 ( 122,832)
 ( 24,269)
 ( 155,251)

 Cash flows from financing activities:

 Proceeds from the issuance of debt, net of discount
 266,750
 —
 1,195,500

 Principal payments of debt
 ( 322,886)
 ( 124,101)
 ( 1,445,734)

 Premiums and fees to refinance debt
 ( 10,531)
 ( 8,535)
 ( 50,763)

 Dividends paid to stockholders
 ( 35,215)
 ( 34,718)
 ( 34,800)

 Customer deposits at the Bank
 86,223
 ( 3,990)
 14,862

 Common stock repurchases
 —
 ( 13,446)
 —

 Other financing activities, net

 ( 15,607)
 ( 13,293)
 ( 9,436)

 Net cash from financing activities
 ( 31,266)
 ( 198,083)
 ( 330,371)

 Effect of exchange rate changes on cash and cash equivalents
 5,702
 ( 16,130)
 ( 4,863)

 Change in cash and cash equivalents
 ( 68,928)
 ( 62,499)
 ( 188,970)

 Cash and cash equivalents at beginning of period
 669,981
 732,480
 921,450

 Cash and cash equivalents at end of period
 $
 601,053
 $
 669,981
 $
 732,480

 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY
 (In thousands)

 Common Stock
 Additional Paid-in Capital
 Retained earnings
 Accumulated other comprehensive loss
 Treasury stock
 Total (deficit) equity

 Balance at December 31, 2020
 $
 323,338
 $
 68,502
 $
 5,205,421
 $
 ( 839,131)
 $
 ( 4,687,509)
 $
 70,621

 Net loss
 —
 —
 —
 —

 Other comprehensive income
 —
 —
 —
 58,819
 —
 58,819

 Dividends ($ 0.20 per share)

 —
 —
 ( 34,800)
 —
 —
 ( 34,800)

 Issuance of common stock
 —
 ( 86,879)
 —
 —
 85,360
 ( 1,519)

 Stock-based compensation
 —
 20,862
 —
 —
 —
 20,862

 323,338
 2,485
 5,169,270
 ( 780,312)
 ( 4,602,149)
 112,632

 Net income

 —
 —
 —
 —

 Other comprehensive loss

 —
 —
 —
 ( 55,252)
 —
 ( 55,252)

 Dividends ($ 0.20 per share)

 —
 —
 ( 34,718)
 —
 —
 ( 34,718)

 Issuance of common stock
 —
 ( 19,114)
 ( 45,815)
 —
 62,797
 ( 2,132)

 Stock-based compensation
 —
 16,629
 —
 —
 —
 16,629

 Repurchase of common stock
 —
 —
 —
 —
 ( 13,446)
 ( 13,446)

 323,338
 —
 5,125,677
 ( 835,564)
 ( 4,552,798)
 60,653

 Net loss

 —
 —
 —
 —

 Other comprehensive loss
 —
 —
 —
 ( 15,681)
 —
 ( 15,681)

 Dividends ($ 0.20 per share)

 —
 —
 ( 35,215)
 —
 —
 ( 35,215)

 Issuance of common stock
 —
 ( 9,597)
 ( 63,877)
 —
 71,171
 ( 2,303)

 Stock-based compensation

 —
 9,597
 —
 —
 —
 9,597

 Retirement of treasury stock

 ( 53,000)
 —
 ( 1,562,970)
 —
 1,615,970
 —

 $
 270,338
 $
 —
 $
 3,077,988
 $
 ( 851,245)
 $
 ( 2,865,657)
 $
 ( 368,576)

 1. Summary of Significant Accounting Policies

 Basis of Presentation
 The accompanying Consolidated Financial Statements of Pitney Bowes Inc. and its wholly owned subsidiaries (we, us, our, or the company) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany transactions and balances have been eliminated.
 Pre-tax income for the twelve months ended December 31, 2022 includes a benefit of $ 3 million to correct misstatements related to prior periods. The impact of these misstatements is not material to the consolidated financial statements of the current annual period or for any prior quarterly or annual periods.

 Factors Affecting Comparability
 Certain transactions and changes occurred during 2022 that impact the comparability to our 2023 financial results. These transactions and changes include:
 • the sale of our Borderfree cross-border ecommerce solutions business (Borderfree) in July 2022. Accordingly, reported revenue and costs for the twelve months ended December 31, 2022 include six months of revenue and costs for Borderfree. Net income of Borderfree for these periods was not significant.
 • a change in the presentation of revenue for digital delivery services effective October 1, 2022, from a gross basis to a net basis. Accordingly, in 2023, revenue and costs of revenue for certain digital delivery services are reported on a net basis as business services revenue; whereas in 2022, revenue and cost of revenue for these services through September 30 were reported as business services revenue and cost of business services, respectively. The change primarily impacts our Global Ecommerce segment.

 Use of Estimates
 The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and accompanying disclosures, including the disclosure of contingent assets and liabilities. These estimates and assumptions are based on management's best knowledge of current events, historical experience and other information available when the financial statements are prepared. These estimates include, but are not limited to, goodwill and intangible asset impairment review, deferred tax asset valuation allowance, income tax reserves, revenue recognition for multiple element arrangements, pension and other postretirement costs, allowance for credit losses, residual values of leased assets, useful lives of long-lived and intangible assets, restructuring costs and loss contingencies. Actual results could differ from those estimates and assumptions.

 Cash and Cash Equivalents
 Cash equivalents include interest-earning investments with maturities of three months or less at the date of purchase. Restricted cash included in cash and cash equivalents at December 31, 2023 and 2022 was $ 3 million and $ 1 million, respectively. Restricted cash represent cash balances which are legally or contractually restricted.

 Investment Securities
 Investment securities classified as available-for-sale are recorded at fair value with changes in fair value due to market conditions (i.e., interest rates) recorded in accumulated other comprehensive loss (AOCL), and changes in fair value due to credit conditions recorded in earnings. Purchase premiums and discounts are amortized using the effective interest method over the term of the security. Gains and losses on sales of available-for-sale securities are recorded on the trade date using the specific identification method. There were no unrealized losses due to credit losses charged to earnings in 2023, 2022, or 2021. Investment securities classified as held-to-maturity and are carried at amortized cost.
 We also hold certain other investments, whereby their nature, changes in fair value are recorded through earnings on a recurring basis or upon the occurrence of an observable transaction.

 Accounts and Other Receivables and Allowance for Credit Losses
 Accounts receivables are generally due within 30 days after the invoice date. We provide an allowance for credit losses based on historical loss experience, the age of the receivables, specific troubled accounts and other currently available information.
 Accounts receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible, or when they are 365 days past due, if sooner. We believe that our accounts receivable credit risk is low

 because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.

 Finance Receivables and Allowance for Credit Losses
 Finance receivables are comprised of sales-type leases, secured loans and unsecured loans. Sales-type leases and secured loans are from financing options provided to clients for Pitney Bowes equipment or leasing of other manufacturers' equipment and are generally due in installments over periods ranging from three to five years. Unsecured loans comprise revolving credit lines offered to our clients for postage, supplies and working capital purposes. These revolving credit lines are generally due monthly; however, clients may rollover outstanding balances. Interest is recognized on finance receivables using the effective interest method. Annual fees are recognized ratably over the annual period covered and client acquisition costs are expensed as incurred.
 We provide an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay and current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.
 Credit approval limits are established based on the credit quality of the client and the type of equipment financed. We cease revenue recognition for lease receivables and unsecured loan receivables that are more than 90 days past due. Revenue recognition is resumed when the client's payments reduce the account aging to less than 60 days past due. Finance receivables 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.

 Inventories
 Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis or net realizable value.

 Fixed Assets
 Property, plant and equipment and rental equipment are stated at cost and depreciated principally using the straight-line method over their estimated useful lives, which are 50 years for buildings, 10 - 20 years for building improvements, up to 3 years for internal use software development costs, 3 - 12 years for machinery and equipment and 3 - 6 years for rental equipment. Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining lease term. Major improvements that add to the productive capacity or extend the life of an asset are capitalized while repairs and maintenance are charged to expense. Fully depreciated assets are retained in fixed assets and accumulated depreciation until they are removed from service.

 Intangible Assets
 Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of up to 10 years.

 Deferred Costs
 Certain incremental costs to obtain a contract are capitalized if we expect the benefit of those costs to be realized over a period greater than one year. These costs primarily relate to contract costs and sales commissions on multi-year equipment sales. Costs are amortized in a manner consistent with the timing of the related revenue over the contract performance period or longer, if renewals are expected and the renewal commission is not commensurate with the initial commission. Unamortized deferred costs at December 31, 2023 and December 31, 2022, included in other assets, were $ 39 million and $ 41 million, respectively. Amortization expense for these costs for the years ended December 31, 2023, 2022 and 2021 was $ 18 million, $ 22 million and $ 18 million, respectively.

 Revenue Recognition
 We derive revenue from multiple sources including sales, rentals, financing and services. Certain transactions are consummated at the same time and can therefore generate revenue from multiple sources. The most common form of these transactions involves a sale or noncancelable lease of equipment, meter services and an equipment maintenance agreement. We determine whether each product and service within the contract should be treated as a separate performance obligation (unit of accounting) for revenue recognition purposes. For contracts that include multiple performance obligations, the transaction price is allocated based on relative standalone selling prices (SSP), which are a range of selling prices that we would sell a product or service to a customer on a separate basis. SSP are established for each performance obligation at the inception of the contract and can be observable prices or estimated. The allocation of the transaction price to the various performance obligations impacts the timing of revenue recognition, but does not change the total revenue recognized. More specifically, revenue related to our offerings is recognized as follows:

 Business services includes fulfillment, delivery and return services, cross-border solutions, mail processing services and shipping subscription solutions. Revenue for fulfillment, delivery and return services, cross-border solutions and mail processing services is recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Revenue for shipping subscription solutions is recognized ratably over the contract period as the client obtains equal benefit from these services throughout the period. We review third-party relationships and record revenue on a gross basis when we act as a principal in a transaction and on a net basis when we act as an agent between a client and vendor. In determining whether we are acting as principal or agent, we consider several factors such as whether we are the primary obligor to the client or have control over pricing.

 Support services includes providing maintenance, professional and subscription services for our equipment and digital mailing and shipping technology solutions. Revenue is allocated to these services using selling prices charged in standalone transactions. Revenue for maintenance and subscription services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

 We provide financing for our products primarily through sales-type leases and revolving lines of credit for the purchase of postage and supplies. Financing revenue also includes finance income, late fees and investment income, gains and losses at the Bank. We record financing income over the lease term using the effective interest method. Financing revenue also includes amounts related to sales-type leases that customers have extended or renewed for an additional term. Revenue for these contracts is recognized over the term of the modified lease using the effective interest method. We believe that our sales-type lease portfolio contains only normal collection risk.
 Equipment residual values are determined at the inception of the lease using management's best estimate of fair value at the end of the lease term. Fair value estimates are determined based on historical renewal experience, used equipment markets, competition and technological changes. We evaluate residual values on an annual basis or sooner if circumstances warrant. Declines in estimated residual values considered "other-than-temporary" are recognized immediately. Increases in estimated future residual values are not recognized until the equipment is remarketed.

 We sell and lease equipment directly to customers and to distributors (re-sellers) throughout the world. The amount of revenue allocated to the equipment is based on a range of observable selling prices in standalone transactions. Revenue is recognized as control of the equipment transfers to the customer. Revenue from the sale of equipment under sales-type leases is recognized upon shipment for self-installed products and upon installation or customer acceptance for other products. Revenue from the direct sale of equipment is recognized upon delivery for self-installed products and upon installation or customer acceptance for other products. We do not typically offer any rights of return.

 Supplies revenue includes the sale of supplies for our mailing equipment and is recognized upon delivery.

 Rentals revenue includes revenue from mailing equipment that does not meet the criteria for as a sales-type lease. We may invoice in advance for rentals according to the terms of the agreement. Advanced billings are initially deferred and recognized on a straight-line basis over the billing period. Revenue generated from financing clients for the continued use of equipment subsequent to the expiration of the original lease is recognized as rentals revenue.

 Shipping and Handling
 Shipping and handling costs are recognized as costs of revenue as incurred.

 Research and Development Costs
 Research and development includes research, development and engineering activities relating to the development of new products and solutions and enhancements of existing products and solutions. Costs primarily include salaries, benefits and other employee-related expenses, materials, contract services, information systems and facilities and equipment costs. Research and development costs are charged to expense as incurred.

 Restructuring Charges
 Restructuring charges may include employee severance and related separation costs and facility abandonment and other related charges. Employee severance and separation costs are recognized when a liability is incurred, which is generally upon communication to the affected employee, and the amount to be paid is both probable and can be reasonably estimated. Severance accruals are based on company policy, historical experience and negotiated settlements.

 Stock-based Compensation
 Compensation expense for stock-based awards is measured based on the estimated fair value of the awards expected to vest and recognized ratably over the requisite service period. We may issue restricted stock and non-qualified stock options under our stock award plans. The fair value of restricted stock is estimated based on the market price of our common stock on the grant date, less the present value of expected dividends. The fair value of non-qualified stock options is determined using the Black-Scholes valuation model. We believe that these valuation techniques and the underlying assumptions are appropriate in estimating the fair value of stock awards. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. Stock-based compensation expense is recognized primarily in selling, general and administrative expense.

 Retirement Plans
 Net periodic benefit cost includes service cost, interest cost, expected return on plan assets and the amortization of actuarial gains and losses. Actuarial gains and losses arise from actual results that differ from previous assumptions and changes in assumptions. The expected return on plan assets is based on a market-related valuation of plan assets where differences between the actual and expected return on plan assets are recognized over a five-year period. Actuarial gains and losses are recognized in other comprehensive loss, net of tax, and amortized to benefit cost primarily over the life expectancy of plan participants. The funded status of pension and other postretirement benefit plans is recognized in the consolidated balance sheets.

 Impairment Review
 Long-lived assets and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset is compared to the asset's carrying value. The fair value of the asset is determined using probability weighted expected cash flow estimates, derived from our long-term business plan and historical experience, quoted market prices when available and appraisals, as appropriate.
 Goodwill is tested annually for impairment at the reporting unit level as of the beginning of the fourth quarter or sooner if circumstances indicate an impairment may exist. The impairment test for goodwill determines the fair value of each reporting unit and compares it to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired. If the fair value of the reporting unit is less than the carrying value of the net assets assigned to the reporting unit, a goodwill impairment loss is calculated as the difference between these amounts, limited to the amount of goodwill allocated to the reporting unit.
 During 2023, we recorded non-cash, pre-tax goodwill impairment charges in the second and fourth quarters of $ 119 million and $ 220 million, respectively. See Note 8 for further details.

 Derivative Instruments
 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. We may also use derivatives to limit the effects of currency exchange rate fluctuations on financial results and manage the related cost of debt. We do not use derivatives for trading or speculative purposes.
 Derivatives are measured at fair value and reported as assets and liabilities, as applicable. The accounting for changes in 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. To qualify as a hedge, a derivative must be highly effective in offsetting the risk designated for hedging purposes. The hedge relationship must be formally documented at inception, detailing the particular risk management objective and strategy for the hedge. The effectiveness of the hedge relationship is evaluated on a retrospective and prospective basis.
 The use of derivatives exposes us to counterparty credit risk. To mitigate such risks, we only enter into agreements with financial institutions that meet stringent credit requirements. We regularly review our credit exposure and the creditworthiness of our counterparties. We have not seen a material change in the creditworthiness of our derivative counterparties.

 Income Taxes
 We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax

 rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date of such change. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. In estimating the necessity and amount of a valuation allowance, we consider all available evidence for each jurisdiction, including historical operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. We adjust the valuation allowance through income tax expense when new information becomes available that would alter our determination of the amount of deferred tax assets that will ultimately be realized.

 Earnings per Share
 Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding during the year plus the weighted-average dilutive effect of common stock equivalents.

 Translation of Non-U.S. Currency Amounts
 In general, the functional currency of our foreign operations is the local currency. Assets and liabilities of subsidiaries operating outside the U.S. are translated at rates in effect at the end of the period and revenue and expenses are translated at average rates during the period. Net deferred translation gains and losses are included as a component of accumulated other comprehensive loss.

 Loss Contingencies
 In the ordinary course of business, we are routinely defendants in, or party to, a number of pending and threatened legal actions. On a quarterly basis, we review the status of each significant matter and assess the potential financial exposure. If the potential loss from any claim or legal action is considered probable and can be reasonably estimated, we establish a liability for the estimated loss. The assessment of the ultimate outcome of each claim or legal action and the determination of the potential financial exposure requires significant judgment. Estimates of potential liabilities for claims or legal actions are based only on information that is available at that time. As additional information becomes available, we may revise our estimates, and these revisions could have a material impact on our results of operations and financial position. Legal fees are expensed as incurred.

 Accounting Pronouncements Adopted in 2023
 On January 1, 2023, we adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which requires disclosure of gross write-offs of finance receivables by year of origination. The adoption of this standard did not have a material impact on our disclosures.

 Accounting Pronouncements Not Yet Adopted
 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which would require additional transparency for income tax disclosures, including the income tax rate reconciliation table and cash taxes paid both in the United States and foreign jurisdictions. This standard is effective for annual periods beginning after December 15, 2024. We are currently assessing the impact this standard will have on our disclosures.
 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which would require enhanced disclosures about significant segment expenses and information used to assess segment performance. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently assessing the impact this standard will have on our disclosures.
 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The transition to new reference interest rates will require certain contracts to be modified and the ASU is intended to provide temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The accommodations provided by the ASU are effective through December 31, 2024, and may be applied at the beginning of any interim period within that time frame.
 With the modification of our revolving credit facility in December 2022, we elected to apply the practical expedient to the replacement of LIBOR reference rate and our assessment of hedge effectiveness. We may apply other expedients as additional reference rate changes occur. We continue to assess the impact of this standard on our financial statements.

 2. Revenue
 Disaggregated Revenue
 The following tables disaggregate our revenue by source and timing of recognition:

 Year Ended December 31, 2023

 Total consolidated revenue

 $
 $
 $
 72,144
 $
 2,045,069
 $
 —
 $
 2,045,069

 —
 —
 —

 —
 —
 —
 —
 271,197
 271,197

 —
 —
 88,144
 88,144
 235,595
 323,739

 —
 —
 —

 —
 —
 —
 —
 67,900
 67,900

 Subtotal
 718,731
 2,691,656
 $
 574,692
 $

 —
 —
 574,692
 574,692

 $
 $
 $
 1,293,423
 $

 Timing of revenue recognition from products and services

 Products/services transferred at a point in time
 $
 —
 $
 —
 $
 306,414
 $
 306,414

 Products/services transferred over time
 412,317
 2,385,242

 Total
 $
 $
 $
 718,731
 $
 2,691,656

 Year Ended December 31, 2022

 Total consolidated revenue

 $
 $
 $
 71,577
 $
 2,249,941
 $
 —
 $
 2,249,941

 —
 —
 —

 —
 —
 —
 —
 274,508
 274,508

 —
 —
 88,022
 88,022
 266,938
 354,960

 —
 —
 —

 —
 —
 —
 —

 Subtotal
 751,976
 2,930,340
 $
 607,702
 $

 —
 —
 607,702
 607,702

 $
 $
 $
 1,359,678
 $

 Timing of revenue recognition from products and services

 Products/services transferred at a point in time
 $
 —
 $
 —
 $
 318,438
 $
 318,438

 Products/services transferred over time
 433,538
 2,611,902

 Total
 $
 $
 $
 751,976
 $
 2,930,340

 Year Ended December 31, 2021

 Total consolidated revenue

 $
 $
 $
 58,614
 $
 2,334,674
 $
 —
 $
 2,334,674

 —
 —
 460,888
 460,888
 —
 460,888

 —
 —
 —
 —
 294,418
 294,418

 —
 —
 91,015
 91,015
 259,123
 350,138

 —
 —
 159,438
 159,438
 —
 159,438

 —
 —
 —
 —
 74,005
 74,005

 Subtotal
 769,955
 3,046,015
 $
 627,546
 $

 —
 —
 627,546
 627,546

 $
 $
 $
 1,397,501
 $

 Timing of revenue recognition from products and services

 Products/services transferred at a point in time
 $
 —
 $
 —
 $
 318,077
 $
 318,077

 Products/services transferred over time
 451,878
 2,727,938

 Total
 $
 $
 $
 769,955
 $
 3,046,015

 Our performance obligations for revenue from products and services are as follows:
 Business services includes fulfillment, delivery and return services, cross-border solutions, mail processing services and shipping subscription solutions. Revenue for fulfillment, delivery and return services, cross-border solutions and mail processing services is recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Contract terms for these services initially range from one to five years and contain annual renewal options. Revenue for shipping subscription solutions is recognized ratably over the contract period as the client obtains equal benefit from these services throughout the period.

 Support services includes providing maintenance, professional and subscription services for our equipment and digital mailing and shipping technology solutions. Contract terms range from one to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance and subscription services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

 Equipment sales generally includes the sale of mailing and shipping equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment and upon acceptance or installation for other equipment. We provide a warranty that the equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

 Supplies revenue includes revenue from the sale of supplies for our mailing equipment and is recognized upon delivery.

 Revenue from leasing transactions and financing includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at the Bank.

 Advance Billings from Contracts with Customers

 Balance Sheet Location
 Increase/ (decrease)

 Advance billings, current
 Advance billings
 $
 82,124
 $
 97,904
 $
 ( 15,780)

 Advance billings, noncurrent
 Other noncurrent liabilities
 $
 $
 $
 ( 399)

 Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to support services on mailing equipment. Revenue recognized during the

 twelve months ended December 31, 2023 includes $ 79 million of advance billings at the beginning of the period. Advance billings, current at both December 31, 2023 and 2022 also includes $ 7 million from leasing transactions.

 Future Performance Obligations
 Future performance obligations primarily include maintenance and subscription services bundled with our leasing contracts. The transaction prices allocated to future performance obligations will be recognized as follows:

 2024
 2025
 2026-2028
 Total

 $
 241,205
 $
 196,422
 $
 256,715
 $
 694,342

 The table above does not include revenue for performance obligations under contracts with terms less than 12 months or revenue for performance obligations where revenue is recognized based on the amount billable to the customer.

 3. Segment Information
 Our reportable segments are Global Ecommerce, Presort Services and SendTech Solutions. The principal products and services of each reportable segment are as follows:
 Global Ecommerce: Includes the revenue and related expenses from domestic parcel services, cross-border solutions and digital delivery services.
 Presort Services: Includes the revenue and related expenses from sortation services to qualify large volumes of First Class Mail, Marketing Mail and Marketing Mail Flats and Bound Printed Matter for postal worksharing discounts.
 SendTech Solutions: Includes the revenue and related expenses from physical and digital mailing and shipping technology solutions,
 financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels
 and flats.

 Management measures segment profitability and performance using adjusted segment earnings before interest and taxes (EBIT). Adjusted segment EBIT is calculated by deducting from segment revenue the related costs and expenses attributable to the segment. Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, goodwill impairment charges and other items not allocated to a particular business segment. Costs related to shared assets are allocated to the relevant segments. Management believes that adjusted segment EBIT provides investors a useful measure of operating performance and underlying trends of the business. Adjusted segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations. The following tables provide information about our reportable segments and reconciliation of adjusted segment EBIT to net income or loss.

 Revenue

 2023
 2022
 2021

 $
 $
 $

 1,293,423
 1,359,678
 1,397,501

 $
 $
 $

 Geographic data:

 $
 2,899,502
 $
 3,065,211
 $
 3,114,905

 Outside United States
 366,846
 472,831
 558,656

 $
 $
 $

 Adjusted Segment EBIT

 2023
 2022
 2021

 $
 ( 133,733)
 $
 ( 100,308)
 $
 ( 98,673)

 110,912
 82,430
 79,721

 405,347
 400,909
 429,415

 Total adjusted segment EBIT
 382,526
 383,031
 410,463

 Reconciling items:

 Interest, net
 ( 163,726)
 ( 141,769)
 ( 143,945)

 Unallocated corporate expenses
 ( 210,931)
 ( 204,251)
 ( 207,774)

 Restructuring charges

 ( 61,585)
 ( 18,715)
 ( 19,003)

 Goodwill impairment
 ( 339,184)
 —
 —

 Gain on sale of assets
 —
 14,372
 1,434

 Gain on sale of businesses, including transaction costs

 —
 12,205
 7,619

 Gain (loss) on debt redemption/refinancing

 3,064
 ( 4,993)
 ( 56,209)

 Proxy solicitation fees

 ( 10,905)
 —
 —

 Foreign currency loss on intercompany loans

 ( 5,761)
 —
 —

 Benefit (provision) for income taxes

 20,875
 ( 2,940)
 10,922

 (Loss) income from continuing operations

 3,507

 Loss from discontinued operations, net of tax

 —
 —
 ( 4,858)

 $
 $
 $

 Depreciation and amortization

 2023
 2022
 2021

 $
 66,664
 $
 78,296
 $
 79,128

 33,642
 28,039
 27,243

 30,005
 29,489
 29,950

 Total for reportable segments
 130,311
 135,824
 136,321

 Corporate
 30,119
 27,992
 26,538

 Total depreciation and amortization
 $
 160,430
 $
 163,816
 $
 162,859

 Capital expenditures

 2023
 2022
 2021

 $
 34,757
 $
 51,430
 $
 89,488

 11,182
 23,363
 36,628

 38,840
 33,364
 26,028

 Total for reportable segments
 84,779
 108,157
 152,144

 Corporate
 18,099
 16,683
 31,898

 Total capital expenditures
 $
 102,878
 $
 124,840
 $
 184,042

 Assets

 2023
 2022
 2021

 $
 597,073
 $
 996,297
 $
 1,032,434

 500,757
 510,345
 479,392

 2,054,889
 2,023,020
 2,013,361

 Total for reportable segments
 3,152,719
 3,529,662
 3,525,187

 Cash and cash equivalents
 601,053
 669,981
 732,480

 Short-term investments
 22,166
 11,172
 14,440

 Long-term investments
 250,240
 259,977
 333,052

 Other corporate assets
 246,007
 270,563
 353,712

 Consolidated assets
 $
 4,272,185
 $
 4,741,355
 $
 4,958,871

 Identifiable long-lived assets:

 $
 703,484
 $
 730,347
 $
 658,070

 Outside United States
 13,685
 13,941
 14,294

 Total
 $
 717,169
 $
 744,288
 $
 672,364

 4. Earnings per Share (EPS)

 The calculations of basic and diluted earnings per share are presented below. The sum of earnings per share amounts may not equal the totals due to rounding.

 2023
 2022
 2021

 Numerator:

 (Loss) income from continuing operations

 $
 $
 $
 3,507

 Loss from discontinued operations, net of tax

 —
 —
 ( 4,858)

 Net (loss) income attributable to common stockholders (numerator for EPS)

 $
 $
 $

 Denominator:

 Weighted-average shares used in basic EPS
 175,640
 173,912
 173,914

 Dilutive effect of common stock equivalents (1)

 —
 3,340
 5,191

 Weighted-average shares used in diluted EPS
 175,640
 177,252
 179,105

 Basic (loss) earnings per share:

 Continuing operations
 $
 $
 0.21
 $
 0.02

 Discontinued operations
 —
 —
 ( 0.03)

 $
 $
 0.21
 $
 ( 0.01)

 Diluted (loss) earnings per share:

 Continuing operations
 $
 $
 0.21
 $
 0.02

 Discontinued operations
 —
 —
 ( 0.03)

 $
 $
 0.21
 $
 ( 0.01)

 Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive:
 9,421
 10,234
 6,514

 (1) Due to the net loss from continuing operations for the year ended December 31, 2023, an additional 4.0 million of common stock equivalents were also excluded from the calculation of diluted earnings per share.

 5. Inventories

 Inventories consisted of the following:

 2023
 2022

 Raw materials
 $
 21,201
 $
 25,539

 Supplies and service parts
 25,522
 27,573

 Finished products
 23,330
 30,608

 Total inventory, net

 $
 70,053
 $
 83,720

 6. Finance Assets and Lessor Operating Leases

 Finance Assets
 All finance receivables are in our SendTech Solutions segment. We segregate our finance receivables into a North America portfolio and International portfolio. Finance receivables consisted of the following:

 North America
 Total
 North America
 Total

 Sales-type lease receivables

 Gross finance receivables
 $
 987,743
 $
 143,466
 $
 1,131,209
 $
 967,298
 $
 158,167
 $
 1,125,465

 Unguaranteed residual values
 38,059
 7,211
 45,270
 38,832
 8,798
 47,630

 Unearned income
 ( 253,711)
 ( 42,847)
 ( 296,558)
 ( 239,238)
 ( 48,334)
 ( 287,572)

 Allowance for credit losses
 ( 13,942)
 ( 2,786)
 ( 16,728)
 ( 14,131)
 ( 2,893)
 ( 17,024)

 Net investment in sales-type lease receivables
 758,149
 105,044
 863,193
 752,761
 115,738
 868,499

 Loan receivables

 Loan receivables
 342,062
 17,865
 359,927
 311,887
 16,636
 328,523

 Allowance for credit losses
 ( 6,346)
 ( 153)
 ( 6,499)
 ( 4,787)
 ( 139)
 ( 4,926)

 Net investment in loan receivables
 335,716
 17,712
 353,428
 307,100
 16,497
 323,597

 Net investment in finance receivables
 $
 1,093,865
 $
 122,756
 $
 1,216,621
 $
 1,059,861
 $
 132,235
 $
 1,192,096

 Maturities of finance receivables at December 31, 2023 were as follows:

 Sales-type Lease Receivables

 North America
 Total
 North America
 Total

 2024
 $
 367,413
 $
 58,142
 $
 425,555
 $
 254,964
 $
 17,865
 $
 272,829

 2025
 277,861
 40,631
 318,492
 35,099
 —
 35,099

 2026
 192,750
 25,379
 218,129
 25,818
 —
 25,818

 2027
 110,336
 13,623
 123,959
 18,114
 —
 18,114

 2028
 38,034
 4,809
 42,843
 6,438
 —
 6,438

 1,349
 2,231
 1,629
 —
 1,629

 Total
 $
 987,743
 $
 143,466
 $
 1,131,209
 $
 342,062
 $
 17,865
 $
 359,927

 Allowance for Credit Losses
 Activity in the allowance for credit losses on finance receivables was as follows:

 Allowance for Credit Losses

 Sales-type Lease Receivables

 North
 North
 Total

 Balance at December 31, 2020
 $
 22,917
 $
 6,006
 $
 6,484
 $
 $
 35,869

 ( 1,788)
 ( 426)
 ( 1,547)

 Write-offs
 ( 7,120)
 ( 846)
 ( 6,045)
 ( 302)
 ( 14,313)

 Recoveries
 3,097
 3,245
 6,518

 Other
 ( 299)
 ( 15)
 ( 309)

 19,546
 3,246
 3,259
 26,218

 ( 2,476)
 3,992
 2,516

 Write-offs
 ( 6,043)
 ( 791)
 ( 4,903)
 ( 295)
 ( 12,032)

 Recoveries
 3,184
 2,447
 5,671

 Other
 ( 80)
 ( 313)
 ( 8)
 ( 22)
 ( 423)

 14,131
 2,893
 4,787
 21,950

 2,096
 1,178
 4,847
 8,510

 Write-offs
 ( 4,757)
 ( 1,448)
 ( 5,182)
 ( 391)
 ( 11,778)

 Recoveries
 2,454
 1,893
 —
 4,528

 Other
 ( 18)

 $
 13,942
 $
 2,786
 $
 6,346
 $
 $
 23,227

 The table below shows write-offs of gross finance receivables by year of origination.

 Sales Type Lease Receivables
 Total

 2023
 2022
 2021
 2020
 2019
 Prior

 Write-offs
 $
 $
 1,680
 $
 1,551
 $
 1,079
 $
 $
 $
 5,573
 $
 11,778

 Aging of Receivables
 The aging of gross finance receivables was as follows:

 Sales-type Lease Receivables

 North
 North
 Total

 Past due amounts 0 - 90 days
 $
 977,744
 $
 140,857
 $
 339,789
 $
 17,664
 $
 1,476,054

 Past due amounts > 90 days
 9,999
 2,609
 2,273
 15,082

 Total
 $
 987,743
 $
 143,466
 $
 342,062
 $
 17,865
 $
 1,491,136

 Sales-type Lease Receivables

 North
 North
 Total

 Past due amounts 0 - 90 days
 $
 959,203
 $
 155,596
 $
 308,872
 $
 16,503
 $
 1,440,174

 Past due amounts > 90 days
 8,095
 2,571
 3,015
 13,814

 Total
 $
 967,298
 $
 158,167
 $
 311,887
 $
 16,636
 $
 1,453,988

 Credit Quality
 The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, a detailed manual review of their financial condition and payment history or an automated process. 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 to ensure that our global strategy is executed, collection resources are allocated and enhanced tools and processes are implemented as needed.
 Over 85 % of our finance receivables are within our North American portfolio. We use a third party to score the majority of this portfolio on a quarterly basis using a proprietary credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. We stratify the credit scores of our clients into low, medium and high-risk accounts. Due to timing and other issues, our entire portfolio may not be scored at period end. We report these amounts as "Not Scored"; however, absence of a score is not indicative of the credit quality of the account. The credit score is used to predict client payment behaviors and the probability that an account will become greater than 90 days past due during the subsequent 12-month period.
 • Low risk accounts are companies with very good credit scores and a predicted delinquency rate of less than 5 %.
 • Medium risk accounts are companies with average to good credit scores and a predicted delinquency rate between 5 % and 10 %.
 • High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent. The predicted delinquency rate would be greater than 10 %.
 We do not use a third party to score our International portfolio because the cost to do so is prohibitive as there is no single credit score model that covers all countries. Accordingly, the entire International portfolio is reported in the Not Scored category. This portfolio comprises less than 15 % of total finance receivables. Most of the International credit applications are small dollar applications (i.e. below $ 50 thousand) and are subjected to an automated review process. Larger credit applications are manually reviewed, which includes obtaining client financial information, credit reports and other available information.
 The table below shows gross finance receivables by relative risk class and year of origination based on the relative scores of the accounts within each class as of December 31, 2023 and 2022.

 Sales Type Lease Receivables
 Total

 2023
 2022
 2021
 2020
 2019
 Prior

 Low
 $
 261,583
 $
 222,947
 $
 155,193
 $
 96,986
 $
 46,635
 $
 27,164
 $
 264,232
 $
 1,074,740

 Medium
 46,208
 35,891
 24,483
 16,027
 10,503
 8,041
 62,910
 204,063

 High
 4,455
 4,217
 2,554
 1,853
 7,487
 22,168

 Not Scored
 59,335
 49,839
 33,494
 15,944
 5,089
 1,166
 25,298
 190,165

 Total
 $
 371,581
 $
 312,894
 $
 215,724
 $
 130,810
 $
 62,967
 $
 37,233
 $
 359,927
 $
 1,491,136

 Sales Type Lease Receivables
 Total

 2022
 2021
 2020
 2019
 2018
 Prior

 Low
 $
 286,297
 $
 206,511
 $
 140,800
 $
 95,485
 $
 34,721
 $
 12,674
 $
 239,635
 $
 1,016,123

 Medium
 53,419
 40,669
 27,013
 19,668
 6,751
 3,441
 56,048
 207,009

 High
 6,492
 3,840
 3,119
 1,942
 6,800
 23,451

 Not Scored
 71,435
 53,831
 29,957
 19,232
 5,889
 1,021
 26,040
 207,405

 Total
 $
 417,643
 $
 304,851
 $
 200,889
 $
 136,327
 $
 48,111
 $
 17,644
 $
 328,523
 $
 1,453,988

 Lease Income
 Lease income from sales-type leases, excluding variable lease payments, was as follows:

 2023
 2022
 2021

 Profit recognized at commencement
 $
 120,011
 $
 134,717
 $
 127,469

 Interest income
 154,998
 163,485
 186,532

 Total lease income from sales-type leases
 $
 275,009
 $
 298,202
 $
 314,001

 Lessor Operating Leases
 We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows:

 2024
 $
 20,627

 2025
 19,939

 2026
 15,827

 2027
 4,573

 2028
 2,153

 Total
 $
 63,119

 7. Fixed Assets
 Fixed assets consisted of the following:

 2023
 2022

 Machinery and equipment
 $
 669,122
 $
 673,898

 Capitalized software
 569,525
 516,816

 Leasehold improvements
 131,786
 127,357

 1,370,433
 1,318,071

 Accumulated depreciation
 ( 986,805)
 ( 897,399)

 Property, plant and equipment, net
 $
 383,628
 $
 420,672

 Rental property and equipment
 $
 76,719
 $
 111,188

 Accumulated depreciation
 ( 53,136)
 ( 83,701)

 Rental property and equipment, net
 $
 23,583
 $
 27,487

 Depreciation expense was $ 145 million, $ 140 million and $ 132 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 8. Intangible Assets and Goodwill
 Intangible Assets
 Intangible assets consisted of the following:

 Gross
Carrying
Amount
 Accumulated
Amortization
 Net
Carrying
Amount
 Gross
Carrying
Amount
 Accumulated
Amortization
 Net
Carrying
Amount

 Customer relationships
 $
 155,712
 $
 ( 95,409)
 $
 60,303
 $
 155,715
 $
 ( 80,188)
 $
 75,527

 Software & technology
 3,047
 ( 1,100)
 1,947
 22,000
 ( 19,583)
 2,417

 Total intangible assets, net
 $
 158,759
 $
 ( 96,509)
 $
 62,250
 $
 177,715
 $
 ( 99,771)
 $
 77,944

 Amortization expense was $ 16 million, $ 24 million and $ 30 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 Future amortization expense for intangible assets at December 31, 2023 is as follows:

 2024
 $
 15,731

 2025
 15,527

 2026
 14,538

 2027
 11,481

 2028
 2,438

 2,535

 Total
 $
 62,250

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

 Goodwill
 The performance of our Global Ecommerce reporting unit, continuing changes in macroeconomic conditions and our long-term outlook for this business were triggering events that caused us to evaluate the Global Ecommerce goodwill for impairment during the second and fourth quarters. To assess Global Ecommerce goodwill for impairment, we determined the fair value of the reporting unit and compared it to the unit's carrying value, including goodwill. We engaged a third party to assist in the determination of the fair value of the reporting unit. The fair value was estimated using a discounted cash flow model based on management developed cash flow projections, which included judgements and assumptions related to revenue growth rates, operating margins, operating income, and a discount rate. The estimates and assumptions are considered Level 3 inputs under the fair value hierarchy. Our assessments indicated that the estimated fair value of the reporting unit was less than its carrying value and recorded non-cash, pre-tax goodwill impairment charges in the second and fourth quarters of 2023 of $ 119 million and $ 220 million, respectively.
 The results of our annual impairment test as of the beginning of the fourth quarter for our other reporting units indicated that no impairment existed.
 Changes in the carrying amount of goodwill by reporting segment are shown in the tables below.

 Goodwill before accumulated impairment
 Accumulated impairment
 Impairment
 FX Impact

 $
 537,353
 $
 ( 198,169)
 $
 339,184
 $
 ( 339,184)
 $
 —
 $
 —

 223,763
 —
 223,763
 —
 —
 223,763

 504,004
 —
 504,004
 —
 6,642
 510,646

 Total goodwill
 $
 1,265,120
 $
 ( 198,169)
 $
 1,066,951
 $
 ( 339,184)
 $
 6,642
 $
 734,409

 Goodwill before accumulated impairment
 Accumulated impairment
 December 31, 2021
 Acquisitions/(dispositions)
 FX Impact

 $
 593,231
 $
 ( 198,169)
 $
 395,062
 $
 ( 55,878)
 $
 —
 $
 339,184

 220,992
 —
 220,992
 2,771
 —
 223,763

 519,049
 —
 519,049
 —
 ( 15,045)
 504,004

 Total goodwill
 $
 1,333,272
 $
 ( 198,169)
 $
 1,135,103
 $
 ( 53,107)
 $
 ( 15,045)
 $
 1,066,951

 9. 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.

 Total

 Assets:

 Investment securities

 $
 13,366
 $
 188,484
 $
 —
 $
 201,850

 —
 15,341
 —
 15,341

 1,581
 5,741
 —
 7,322

 11,489
 18,999
 —
 30,488

 —
 54,330
 —
 54,330

 —
 119,901
 —
 119,901

 Derivatives

 Interest rate swaps
 —
 8,425
 —
 8,425

 Total assets
 $
 26,436
 $
 411,221
 $
 —
 $
 437,657

 Total

 Assets:

 Investment securities

 $
 29,087
 $
 238,536
 $
 —
 $
 267,623

 —
 13,233
 —
 13,233

 1,520
 6,526
 —
 8,046

 10,253
 18,796
 —
 29,049

 —
 52,319
 —
 52,319

 —
 126,882
 —
 126,882

 Derivatives

 Interest rate swap
 —
 15,283
 —
 15,283

 —
 —

 Total assets
 $
 40,860
 $
 472,054
 $
 —
 $
 512,914

 Liabilities:

 Derivatives

 $
 —
 $
 $
 —
 $

 Total liabilities
 $
 —
 $
 $
 —
 $

 Investment Securities
 The valuation of investment securities is based on a 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 within the fair value hierarchy:
 • Money Market Funds: 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.
 • Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2.
 • Commingled Fixed Income Securities: Commingled fixed income securities are comprised of 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. Fair value is based on the 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 mutual funds 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.
 • Government and Related Securities: Debt securities are classified as Level 1 when unadjusted quoted prices in active markets are available. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.
 • Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads 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 or on external price/spread data. These securities are classified as Level 2.

 Derivative Securities
 • Foreign Exchange Contracts: The valuation of foreign exchange derivatives is based on a market approach using observable market inputs, such as foreign currency spot and forward rates and yield curves. These securities are classified as Level 2.
 • Interest Rate Swaps: The valuation of interest rate swaps is based on an income approach using inputs that are observable or that can be derived from, or corroborated by, observable market data. These securities are classified as Level 2.

 Available-For-Sale Securities
 Available-for-sale securities consisted of the following:

 Amortized cost
 Gross unrealized losses
 Estimated fair value

 $
 35,048
 $
 ( 7,018)
 $
 28,030

 65,008
 ( 10,678)
 54,330

 1,788
 ( 207)
 1,581

 146,022
 ( 26,121)
 119,901

 Total
 $
 247,866
 $
 ( 44,024)
 $
 203,842

 Amortized cost
 Gross unrealized gains
 Gross unrealized losses
 Estimated fair value

 $
 35,744
 $
 $
 ( 8,210)
 $
 27,545

 66,300
 —
 ( 13,981)
 52,319

 1,749
 —
 ( 229)
 1,520

 156,352
 —
 ( 29,470)
 126,882

 Total
 $
 260,145
 $
 $
 ( 51,890)
 $
 208,266

 Investment securities in a loss position were as follows:

 Fair Value
 Gross unrealized losses
 Fair Value
 Gross unrealized losses

 Greater than 12 continuous months

 $
 28,030
 $
 7,018
 $
 17,063
 $
 2,753

 51,948
 10,466
 48,812
 13,749

 119,901
 26,121
 114,839
 28,040

 Total
 $
 199,879
 $
 43,605
 $
 180,714
 $
 44,542

 Less than 12 continuous months

 $
 —
 $
 —
 $
 10,061
 $
 5,457

 2,382
 3,508

 1,581
 1,520

 —
 —
 12,042
 1,430

 Total
 $
 3,963
 $
 $
 27,131
 $
 7,348

 At December 31, 2023, all securities in the investment portfolio were in a loss position. However, no impairment loss has been recognized as we have the ability and intent to hold these securities until recovery of the unrealized losses or expect to receive the stated principal and interest at maturity.

 At December 31, 2023, scheduled maturities of available-for-sale securities were as follows:

 Amortized cost
 Estimated fair value

 Within 1 year
 $
 2,594
 $
 2,382

 After 1 year through 5 years
 15,103
 14,029

 After 5 years through 10 years
 70,702
 60,099

 After 10 years
 159,467
 127,332

 Total
 $
 247,866
 $
 203,842

 The actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations with or without penalty.

 Held-to-Maturity Securities
 Held-to-maturity securities at December 31, 2023 and 2022 totaled $ 265 million and $ 22 million, respectively. Held-to-maturity securities include certificates of deposits with maturities less than 90 days and highly-liquid government securities with maturities less than two years.

 Derivative Instruments
 Foreign Exchange Contracts
 We may enter into foreign exchange contracts to mitigate the currency risk associated with anticipated inventory purchases 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 AOCL 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. No amount of ineffectiveness was recorded in earnings for these designated cash flow hedges. There were no outstanding contracts associated with these anticipated transactions at December 31, 2023. At December 31, 2022, outstanding contracts associated with these anticipated transactions had a notional value of $ 1 million.

 Interest Rate Swaps
 We enter into interest rate swaps to manage the cost of our variable rate debt. At December 31, 2023, we had outstanding interest rate swaps that effectively convert $ 200 million of our variable rate debt to fixed rates. These swaps are designated as cash flow hedges. The fair value of the interest rate swaps is recorded as a derivative asset or liability at the end of each reporting period with the change in fair value reflected in AOCL.

 The fair value of our derivative instruments was as follows:

 Designation of Derivatives
 Balance Sheet Location
 2023
 2022

 Derivatives designated as hedging instruments

 $
 —
 $

 —
 ( 23)

 Interest rate swaps
 8,425
 —

 Other assets

 —
 15,283

 Derivatives not designated as hedging instruments

 —

 —
 ( 1,449)

 Total derivative assets
 8,425
 15,762

 Total derivative liabilities
 —

 Total net derivative asset
 $
 8,425
 $
 14,290

 The following represents the results of cash flow hedging relationships:

 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
 2023
 2022
 2023
 2022

 $
 ( 25)
 $
 Cost of sales

 $
 ( 33)
 $

 Interest rate swaps
 ( 6,858)
 12,180
 Interest expense

 9,708

 $
 ( 6,883)
 $
 12,339

 $
 9,675
 $

 Non-designated derivative instruments
 We have a number of short-term interest-bearing intercompany loans denominated in a foreign currency. The revaluation of these intercompany loans is recorded in earnings. Historically, we entered into foreign exchange contracts to minimize the impact on earnings from the revaluation of these intercompany loans. In the fourth quarter of 2023, management decided to no longer use foreign exchange contracts to hedge the revaluation of these intercompany loans.

 The following represents the mark-to-market adjustment on our non-designated derivative instruments:

 Derivative Gain (Loss)
Recognized in Earnings

 Derivatives Instrument
 Location of Derivative Gain (Loss)
 2023
 2022

 Selling, general and administrative expense
 $
 3,551
 $
 ( 28,228)

 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 of cash and cash equivalents, accounts receivable, loans receivable, held-to-maturity investment securities and accounts payable approximate fair value. The fair value of available-for-sale investment securities and derivative instruments are presented above. 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 was as follows:

 2023
 2022

 Carrying value
 $
 2,146,032
 $
 2,205,266

 Fair value
 $
 1,893,620
 $
 1,856,878

 10. Supplemental Financial Statement Information
 Selected balance sheet information is as follows:

 2023
 2022

 Other assets:

 Long-term investments
 $
 250,240
 $
 259,977

 Other

 102,120
 120,442

 Total
 $
 352,360
 $
 380,419

 Accounts payable and accrued liabilities:

 Accounts payable
 $
 282,425
 $
 315,351

 Customer deposits
 213,315
 209,662

 Employee related liabilities
 240,159
 216,273

 Other
 139,577
 165,797

 Total
 $
 875,476
 $
 907,083

 Other noncurrent liabilities:

 Pension liabilities
 $
 98,784
 $
 74,681

 Postretirement medical benefits
 83,222
 87,745

 Customer deposits

 83,995
 10,757

 Other
 48,701
 54,546

 Total
 $
 314,702
 $
 227,729

 Activity in the allowance for credit losses on accounts receivable is presented below.

 2023
 2022
 2021

 Balance at beginning of year
 $
 5,864
 $
 29,179
 $
 35,344

 8,177
 6,421
 9,355

 Write-offs, recoveries and other
 ( 7,902)
 ( 29,736)
 ( 15,520)

 Balance at end of period
 $
 6,139
 $
 5,864
 $
 29,179

 Accounts and other receivables
 $
 6,139
 $
 5,344
 $
 11,168

 Other assets
 —
 18,011

 Total
 $
 6,139
 $
 5,864
 $
 29,179

 Acquisitions/Divestitures
 In 2022, we sold Borderfree for proceeds of $ 95 million, net of cash transferred, and received additional proceeds of $ 7 million related to the 2021 sale of Tacit, a U.K. based software consultancy business. In 2021, we received net proceeds of $ 28 million from the sale of Tacit and acquired CrescoData for $ 15 million.

 Other (income) expense consisted of the following:

 2023
 2022
 2021

 (Gain) loss on redemption/refinancing of debt

 $
 ( 3,064)
 $
 4,993
 $
 56,209

 Insurance proceeds
 —
 —
 ( 3,000)

 Gain on sale of assets
 —
 ( 14,372)
 ( 1,434)

 Gain on sale of businesses, including transaction costs
 —
 ( 12,239)
 ( 10,201)

 Other (income) expense
 $
 ( 3,064)
 $
 ( 21,618)
 $
 41,574

 Supplemental cash flow information is as follows:

 2023
 2022
 2021

 Purchases of property and equipment in accounts payable
 $
 4,764
 $
 5,213
 $
 5,305

 Cash interest paid
 $
 164,046
 $
 134,247
 $
 124,084

 Cash income tax payments, net of refunds
 $
 22,626
 $
 14,553
 $
 4,337

 Other, net within cash flows from operating activities includes $ 14 million and $ 11 million of losses from the disposal of fixed assets for the years ended December 31, 2023 and 2022, respectively.

 11. Restructuring Charges
 In May 2023, we approved a worldwide restructuring plan (the 2023 Plan) designed to improve profitability and cash flow. This will be achieved through the elimination of 850 - 950 positions worldwide in part through further centralization and standardization of processes, including the expansion of our shared services activities, increased automation, and the consolidation or closure of select facilities in North America. Total charges are expected to be $ 60 million-$ 70 million and we expect to substantially complete these actions by the end of the first half of 2024.
 Activity in our restructuring reserves was as follows:

 2023 Plan

 Prior Plan

 Total

 $
 —
 $
 5,747
 $
 5,747

 —

 Cash payments
 —
 ( 15,406)
 ( 15,406)

 Noncash activity
 —
 ( 1,409)
 ( 1,409)

 —
 7,647
 7,647

 57,986
 3,599
 61,585

 Cash payments
 ( 23,197)
 ( 11,246)
 ( 34,443)

 Noncash activity
 ( 8,661)
 —
 ( 8,661)

 $
 26,128
 $
 —
 $
 26,128

 Components of restructuring expense were as follows:

 Year Ended December 31, 2023
 Year Ended December 31, 2022

 2023 Plan
 Prior Plan
 Total
 Prior Plan

 Severance
 $
 49,325
 $
 3,057
 $
 52,382
 $
 14,750

 Facilities and other
 8,661
 9,203
 3,965

 Total
 $
 57,986
 $
 3,599
 $
 61,585
 $

 12. Debt

 Interest rate
 2023
 2022

 Notes due March 2024
 4.625 %
 —
 236,749

 Term loan due March 2026
 SOFR + 2.25 %

 285,500
 351,500

 Notes due March 2027
 6.875 %
 380,000
 396,750

 Notes due March 2028

 SOFR + 6.9 %

 274,313
 —

 Term loan due March 2028
 SOFR + 4.0 %

 437,625
 442,125

 Notes due March 2029
 7.25 %
 350,000
 350,000

 Notes due January 2037
 5.25 %
 35,841
 35,841

 Notes due March 2043
 6.70 %
 425,000
 425,000

 Other debt
 1,181
 2,446

 Principal amount
 2,189,460
 2,240,411

 Less: unamortized costs, net
 43,428
 35,145

 Total debt
 2,146,032
 2,205,266

 Less: current portion long-term debt
 58,931
 32,764

 Long-term debt
 $
 2,087,101
 $
 2,172,502

 During 2023, we issued an aggregate $ 275 million of senior secured notes that mature in March 2028 (the March 2028 Notes). The March 2028 Notes bear interest of SOFR plus 6.9 %, payable quarterly and were issued with original issue discount of 3 %. The net proceeds were used to redeem the March 2024 notes and repay $ 30 million of the term loan due March 2026. We also repurchased an aggregate $ 39 million of the March 2024 notes and March 2027 notes at a gain of $ 3 million and made scheduled term loan principal repayments of $ 42 million. At December 31, 2023, the interest rate on the term loan due 2026 was 7.7 %, the interest rate on the term loan due 2028 was 9.5 % and the interest rate on the March 2028 notes was 12.2 %.
 The credit agreement that governs our $ 500 million secured revolving credit facility and the term loan due March 2026 contains certain financial covenants. These covenants require us to maintain, on a quarterly basis, a maximum leverage ratio and a minimum interest coverage ratio, both of which are defined and calculated in accordance with the credit agreement. The maximum leverage ratio decreases from 4.25 x to 4.0 x as of June 30, 2024 and the minimum interest coverage ratio increases from 1.75 x to 2.0 x as of March 31, 2025. At December 31, 2023, we were in compliance with these financial covenants. Additionally, management expects that we will remain in compliance with these financial covenants over the next twelve months. However, events and circumstances could occur, some beyond our control, that could adversely impact our compliance with these covenants and require us to obtain a waiver from our lenders, modify our existing covenants or refinance certain debt to cure the noncompliance. If we are unable to cure the noncompliance, amounts due under our revolving credit facility and term loan due March 2026 could be called by our lenders. At December 31, 2023, there were no outstanding borrowings under the revolving credit facility. Borrowings under our secured debt are secured by assets of the company.
 We have outstanding interest rate swaps that effectively convert $ 200 million of our variable rate debt to fixed rates. In January 2023, the reference rate of the interest rate swaps was amended to align with the secured revolving credit facility. Under the terms of the interest rate swaps, we pay fixed-rate interest of 0.585 % and receive variable-rate interest based on one-month SOFR plus 0.1 %. The variable interest rates under the term loans and the swaps reset monthly.
 The PB Bank (the Bank), a wholly owned subsidiary, is a member of the Federal Home Loan Bank (FHLB) of Des Moines and has access to certain credit products as a funding source known as "advances." As of December 31, 2023, there were no outstanding advances.
 Annual maturities of outstanding principal at December 31, 2023 are as follows:

 2024
 $
 58,931

 2025
 53,250

 2026
 196,250

 2027
 387,250

 2028
 682,938

 810,841

 Total
 $
 2,189,460

 13. Retirement Plans and Postretirement Medical Benefits

 Retirement Plans
 We provide retirement benefits to eligible employees in the U.S. and outside the U.S. under various defined benefit retirement plans. Benefit accruals under most of our defined benefit plans have been frozen. The benefit obligations and funded status of defined benefit pension plans are as follows:

 2023
 2022
 2023
 2022

 Accumulated benefit obligation
 $
 1,205,108
 $
 1,205,135
 $
 488,531
 $
 447,401

 Projected benefit obligation

 Benefit obligation - beginning of year
 $
 1,205,183
 $
 1,609,508
 $
 451,337
 $
 770,468

 Service cost
 1,214

 Interest cost
 63,533
 44,348
 21,238
 13,568

 Net actuarial loss (gain)

 36,882
 ( 349,261)
 22,984
 ( 242,488)

 Foreign currency changes
 —
 —
 19,854
 ( 68,519)

 Settlements
 ( 2,892)
 ( 1,574)
 ( 213)
 —

 Benefits paid
 ( 97,610)
 ( 97,893)
 ( 23,199)
 ( 22,906)

 Benefit obligation - end of year
 $
 1,205,140
 $
 1,205,183
 $
 492,767
 $
 451,337

 Fair value of plan assets - beginning of year
 $
 1,161,361
 $
 1,549,157
 $
 438,403
 $
 737,443

 Actual return on plan assets
 86,044
 ( 293,968)
 17,057
 ( 218,325)

 Company contributions
 6,587
 5,639
 16,034
 8,731

 Settlements
 ( 2,892)
 ( 1,574)
 ( 213)
 —

 Foreign currency changes
 —
 —
 18,605
 ( 66,540)

 Benefits paid
 ( 97,610)
 ( 97,893)
 ( 23,199)
 ( 22,906)

 Fair value of plan assets - end of year
 $
 1,153,490
 $
 1,161,361
 $
 466,687
 $
 438,403

 Amounts recognized in the Consolidated Balance Sheets

 Noncurrent asset
 $
 —
 $
 —
 $
 27,805
 $
 26,570

 Current liability
 ( 5,057)
 ( 7,294)
 ( 1,694)

 Noncurrent liability
 ( 46,593)
 ( 36,528)
 ( 52,191)
 ( 38,153)

 Funded status
 $
 ( 51,650)
 $
 ( 43,822)
 $
 ( 26,080)
 $
 ( 12,934)

 Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets:

 2023
 2022
 2023
 2022

 Projected benefit obligation
 $
 1,205,141
 $
 1,205,183
 $
 396,690
 $
 38,238

 Accumulated benefit obligation
 $
 1,205,108
 $
 1,205,135
 $
 392,586
 $
 37,972

 $
 1,153,490
 $
 1,161,361
 $
 342,805
 $
 —

 Pretax amounts recognized in AOCI consist of:

 2023
 2022
 2023
 2022

 Net actuarial loss
 $
 717,530
 $
 698,815
 $
 331,536
 $
 297,753

 Prior service (credit) cost
 ( 85)
 ( 105)
 7,266
 7,552

 Transition asset
 —
 —
 ( 7)
 ( 7)

 Total
 $
 717,445
 $
 698,710
 $
 338,795
 $
 305,298

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

 2023
 2022
 2021
 2023
 2022
 2021

 Service cost
 $
 $
 $
 $
 $
 1,214
 $
 1,528

 Interest cost
 63,533
 44,348
 42,434
 21,238
 13,568
 11,811

 Expected return on plan assets
 ( 86,008)
 ( 71,080)
 ( 77,119)
 ( 29,899)
 ( 26,770)
 ( 31,869)

 Amortization of prior service (credit) cost
 ( 20)
 ( 44)
 ( 60)

 Amortization of net actuarial loss
 17,362
 33,164
 38,233
 2,068
 6,767
 9,350

 Settlements
 ( 25)
 —
 —

 Net periodic benefit (income) cost

 $
 ( 4,318)
 $
 6,837
 $
 4,141
 $
 ( 5,566)
 $
 ( 4,969)
 $
 ( 8,912)

 Other changes in plan assets and benefit obligations for defined benefit pension plans recognized in other comprehensive income were as follows:

 2023
 2022
 2023
 2022

 Net actuarial loss

 $
 36,846
 $
 15,788
 $
 35,826
 $
 2,607

 Amortization of net actuarial loss
 ( 17,362)
 ( 33,164)
 ( 2,068)
 ( 6,767)

 Amortization of prior service credit (cost)
 ( 286)
 ( 252)

 Settlements
 ( 771)
 ( 394)
 —

 Total recognized in other comprehensive income
 $
 18,733
 $
 ( 17,726)
 $
 33,497
 $
 ( 4,412)

 Weighted-average actuarial assumptions used to determine year end benefit obligations and net periodic benefit cost for defined benefit pension plans include:

 2023
 2022
 2021

 Used to determine benefit obligations

 Discount rate
 5.15 %
 5.55 %
 2.85 %

 Rate of compensation increase
 N/A
 N/A
 N/A

 Used to determine net periodic benefit cost

 Discount rate
 5.55 %
 2.85 %
 2.54 %

 Expected return on plan assets
 6.50 %
 5.10 %
 5.60 %

 Rate of compensation increase
 N/A
 N/A
 N/A

 Used to determine benefit obligations

 Discount rate
 1.95
 %
 -
 4.60 %
 1.95
 %
 -
 5.10 %
 0.85
 %
 -
 2.85 %

 Rate of compensation increase
 2.00
 %
 -
 3.50 %
 2.00
 %
 -
 3.00 %
 1.50
 %
 -
 3.65 %

 Used to determine net periodic benefit cost

 Discount rate
 1.95
 %
 -
 5.10 %
 0.85
 %
 -
 2.85 %
 0.70
 %
 -
 2.40 %

 Expected return on plan assets
 2.75
 %
 -
 5.26 %
 3.75
 %
 -
 5.75 %
 3.50
 %
 -
 5.75 %

 Rate of compensation increase
 2.00
 %
 -
 3.60 %
 1.50
 %
 -
 2.50 %
 1.50
 %
 -
 2.50 %

 A discount rate is used to determine the present value of our future benefit obligations. The discount rate for our U.S. pension plans is determined by matching the expected cash flows associated with our benefit obligations to a pool of corporate long-term, high-quality fixed income debt instruments available as of the measurement date. The discount rate for our largest foreign plan, the U.K. Qualified Pension Plan (the U.K. Plan), is determined using a model that discounts each year's estimated benefit payments by an applicable spot rate derived from a yield curve created from a large number of high quality corporate bonds. For our other smaller foreign pension plans, the discount rate is selected based on high-quality fixed income indices available in the country in which the plan is domiciled.
 The expected return on plan assets is based on the target asset allocation for the applicable pension plan and expected rates of return for various asset classes in the investment portfolio after analyzing historical experience, future expectations of returns and volatility of asset classes.

 Investment Strategy and Asset Allocation
 The investment strategy for our pension plans is to maximize returns within reasonable and prudent risk levels, achieve and maintain full funding of the accumulated benefit obligation and the actuarial liabilities and earn the expected rate of return while adhering to regulations and restrictions.
 Pension plan assets are invested in accordance with our strategic asset allocation policy. Pension plan assets are exposed to various risks, including interest rate risks, market risks and credit risks. Investments are diversified across asset classes and within each class to reduce the risk of large losses and are periodically rebalanced. Derivatives, such as swaps, options, forwards and futures contracts may be used for market exposure, to alter risk/return characteristics and to manage foreign currency exposure. We do not have any significant concentrations of credit risk within the plan assets.

 U.S. Pension Plans
 Investment objectives and investment managers are reviewed periodically. Target and actual asset allocations for the U.S. pension plans were as follows:

 Target allocation
 Percent of Plan Assets at December 31,

 2024
 2023
 2022

 Asset category

 Equities
 %
 %
 %

 Multi-asset credit
 %
 %
 %

 Fixed income
 %
 %
 %

 %
 %
 %

 Private equity
 %
 %
 %

 Total
 %
 %
 %

 Foreign Pension Plans
 Our foreign pension plan assets are managed by outside investment managers and monitored regularly by local trustees and our corporate personnel. Target and actual asset allocations for the U.K. Plan, which comprises 74 % of the total foreign pension plan assets, were as follows:

 Target Allocation
 Percent of Plan Assets at December 31,

 2024
 2023
 2022

 Asset category

 Global equities
 %
 %
 %

 Fixed income
 %
 %
 %

 Multi-asset credit

 %
 %
 —
 %

 %
 %
 %

 Diversified growth
 —
 %
 —
 %
 %

 Cash
 —
 %
 %
 %

 Total
 %
 %
 %

 Fair Value Measurements of Plan Assets
 The following tables show the U.S. and foreign pension plans' assets, by level within the fair value hierarchy. The plan asset categories presented in the following tables are subsets of the broader asset allocation categories.

 United States Pension Plans

 Total

 $
 —
 $
 13,842
 $
 —
 $
 13,842

 —
 102,795
 —
 102,795

 —
 220,041
 —
 220,041

 170,540
 28,518
 —
 199,058

 —
 545,615
 —
 545,615

 Mortgage-backed /asset-backed securities
 —
 49,300
 —
 49,300

 —
 —
 67,256
 67,256

 Securities lending collateral
 —
 104,630
 —
 104,630

 Total plan assets at fair value
 $
 170,540
 $
 1,064,741
 $
 67,256
 $
 1,302,537

 Securities lending payable
 ( 104,630)

 Investments valued at NAV
 5,615

 Cash
 1,240

 Other
 ( 51,272)

 $
 1,153,490

 Total

 $
 —
 $
 10,623
 $
 —
 $
 10,623

 —
 137,505
 —
 137,505

 —
 220,281
 —
 220,281

 114,084
 21,479
 —
 135,563

 —
 527,407
 —
 527,407

 Mortgage-backed /asset-backed securities
 —
 26,450
 —
 26,450

 —
 —
 91,500
 91,500

 Securities lending collateral
 —
 113,802
 —
 113,802

 Total plan assets at fair value
 $
 114,084
 $
 1,057,547
 $
 91,500
 $
 1,263,131

 Securities lending payable
 ( 113,802)

 Investments valued at NAV
 10,416

 Cash
 3,525

 Other
 ( 1,909)

 $
 1,161,361

 Foreign Plans

 Total

 $
 —
 $
 5,997
 $
 —
 $
 5,997

 —
 44,088
 —
 44,088

 —
 295,105
 —
 295,105

 —
 38,028
 —
 38,028

 —
 28,389
 —
 28,389

 —
 4,869
 43,205
 48,074

 Diversified growth funds
 —
 —
 —
 —

 Total plan assets at fair value
 $
 —
 $
 416,476
 $
 43,205
 $
 459,681

 Cash
 6,501

 Other

 $
 466,687

 Total

 $
 —
 $
 8,338
 $
 —
 $
 8,338

 —
 42,717
 —
 42,717

 —
 247,337
 —
 247,337

 —
 35,887
 —
 35,887

 —
 26,336
 —
 26,336

 —
 4,446
 42,980
 47,426

 Diversified growth funds
 —
 —
 24,394
 24,394

 Total plan assets at fair value
 $
 —
 $
 365,061
 $
 67,374
 $
 432,435

 Cash
 5,485

 Other

 $
 438,403

 The following information relates to our classification of investments into the fair value hierarchy:
 • Money Market Funds: 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.
 • Equity Securities: Equity securities are comprised of mutual funds and collective trust funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2.
 • Commingled Fixed Income Securities: Commingled fixed income securities are comprised of 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. Fair value is based on the 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 mutual funds 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.
 • Government and Related Securities: 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 are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.

 • Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads 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 or on external price/spread data. These securities are classified as Level 2.
 • Real Estate: include units in open-ended commingled real estate funds. Funds that are valued and traded on a daily basis in an active market are classified as Level 2. Investments that are valued on an annual basis by certified appraisers are classified as Level 3. The valuation techniques used to value Level 3 investments include the cost approach, sales-comparison method and the income approach.
 • Diversified Growth Funds: comprised of units in commingled diversified growth funds that comprise a mix of different asset classes. The underlying investments may not be listed on an exchange in an active market or traded on a daily basis and may fall into all three fair value categories. Accordingly, these securities are classified as Level 3.
 • Securities Lending Fund: represents a commingled fund through our custodian's securities lending program. The U.S. pension plan lends securities that are held within the plan to other banks and/or brokers, and receives collateral, typically cash. This collateral is invested in a commingled fund that invests in short-term fixed income securities. This investment is classified as Level 2. This amount invested in the fund is offset by a corresponding liability reflected in the U.S. pension plan's net assets available for benefits.

 Investments Valued at Net Asset Value
 Represents investments in private equity limited partnerships that are measured at fair value using the Net Asset Value (NAV) per share as a practical expedient and are not categorized in the fair value hierarchy. There is no active market for these investments and the pension plan receives a proportionate share of the gains, losses and expenses in accordance with the partnership agreements. There was a remaining unfunded commitment of $ 6 million at both December 31, 2023 and 2022. These investments comprise approximately 1 % of total U.S. Pension Fund assets at both December 31, 2023 and 2022.

 Level 3 Gains and Losses
 The following table summarizes the changes in the fair value of Level 3 assets:

 U.S. Plans
 Foreign Plans

 Diversified Growth Funds

 $
 77,494
 $
 52,491
 $
 52,169

 Realized gains
 1,058
 —
 —

 Unrealized gains (losses)

 12,666
 ( 6,741)
 ( 5,933)

 Net purchases, sales and settlements
 1,729
 ( 16,474)

 Foreign currency and other
 —
 ( 4,499)
 ( 5,368)

 91,500
 42,980
 24,394

 Realized gains

 4,505
 —
 —

 Unrealized losses

 ( 18,386)
 ( 3,951)
 ( 3,133)

 Net purchases, sales and settlements
 ( 10,363)
 2,014
 ( 22,396)

 Foreign currency and other
 —
 2,162
 1,135

 $
 67,256
 $
 43,205
 $
 —

 Postretirement Medical Benefits
 We provide certain employer subsidized health care and employer provided life insurance benefits in the U.S. and Canada to eligible retirees and their dependents. The cost of these benefits is recognized over the period the employee provides credited service to the company. The benefit obligation and funded status for postretirement medical benefit plans are as follows:

 2023
 2022

 Benefit obligation

 Benefit obligation - beginning of year
 $
 99,275
 $
 139,516

 Service cost

 Interest cost
 5,031
 3,679

 Net actuarial gain
 ( 206)
 ( 31,512)

 Foreign currency changes
 ( 740)

 Benefits paid, net
 ( 11,194)
 ( 12,399)

 Benefit obligation - end of year (1)

 $
 93,487
 $
 99,275

 Fair value of plan assets - beginning of year
 $
 —
 $
 —

 Company contribution
 11,194
 12,399

 Benefits paid, net
 ( 11,194)
 ( 12,399)

 Fair value of plan assets - end of year
 $
 —
 $
 —

 Amounts recognized in the Consolidated Balance Sheets

 Current liability
 $
 ( 10,265)
 $
 ( 11,530)

 Noncurrent liability

 ( 83,222)
 ( 87,745)

 Funded status
 $
 ( 93,487)
 $
 ( 99,275)

 (1) Includes a benefit obligation for the U.S. postretirement plan of $ 84 million and $ 90 million at December 31, 2023 and 2022, respectively.

 Pretax amounts recognized in AOCL consist of:

 2023
 2022

 Net actuarial gain

 $
 ( 14,360)
 $
 ( 16,405)

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

 2023
 2022
 2021

 Service cost
 $
 $
 $

 Interest cost
 5,031
 3,679
 3,755

 Amortization of prior service cost
 —
 —

 Amortization of net actuarial loss
 ( 2,249)
 4,090

 Net periodic benefit cost
 $
 3,149
 $
 4,478
 $
 8,883

 Other changes in benefit obligation for postretirement medical benefit plans recognized in other comprehensive income were as follows:

 2023
 2022

 Net actuarial gain
 $
 ( 206)
 $
 ( 31,512)

 Amortization of net actuarial loss
 2,249
 ( 68)

 Total recognized in other comprehensive income
 $
 2,043
 $
 ( 31,580)

 The weighted-average discount rates used to determine end of year benefit obligation and net periodic pension cost include:

 2023
 2022
 2021

 Discount rate used to determine benefit obligation

 U.S.
 5.20
 %
 5.60
 %
 2.80
 %

 Canada
 4.60
 %
 5.15
 %
 2.90
 %

 Discount rate used to determine net period benefit cost

 U.S.
 5.60
 %
 2.80
 %
 2.35
 %

 Canada
 5.15
 %
 2.90
 %
 2.50
 %

 The discount rate for our U.S. postretirement medical benefit plan is determined by matching the expected cash flows associated with our benefit obligations to a pool of corporate long-term, high-quality fixed income debt instruments available as of the measurement date. The discount rate for our Canada postretirement medical benefit plan is determined by matching the expected cash flows associated with our benefit obligations to spot rates along a yield curve developed based on yields of corporate long-term, high-quality fixed income debt instruments available as of the measurement date.
 The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the U.S. plan was 6.75 % for 2023 and 6.5 % for 2022. The assumed health care trend rate is 6.25 % for 2024 and will gradually decline to 5.0 % by the year 2028 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans.

 Estimated Future Benefit Payments
 The following benefit payments, which reflect expected future service, are expected to be paid.

 Pension Benefits
 Postretirement Medical Benefits

 2024
 $
 123,016
 $
 10,514

 2025
 123,566
 10,065

 2026
 121,323
 9,626

 2027
 120,468
 9,130

 2028
 120,025
 8,654

 576,290
 36,181

 $
 1,184,688
 $
 84,170

 During 2024, we do not anticipate making contributions to our U.S. pension plans and contributing approximately $ 6 million to our foreign pension plans.

 Savings Plans
 We offer a voluntary defined contribution 401(k) plan to our U.S. employees designed to help them accumulate additional savings for retirement. We provide a core contribution to all employees, regardless of if they participate in the plan, and an additional contribution to participating employees based on their eligible pay. Total employer contributions to the 401(k) plan were $ 28 million in both 2023 and 2022.

 14. Income Taxes

 (Loss) income from continuing operations before taxes consisted of the following:

 2023
 2022
 2021

 U.S.
 $
 ( 472,848)
 $
 ( 39,294)
 $
 ( 85,258)

 66,346
 79,174
 77,843

 Total
 $
 ( 406,502)
 $
 39,880
 $
 ( 7,415)

 The (benefit) provision for income taxes from continuing operations consisted of the following:

 2023
 2022
 2021

 U.S. Federal:

 Current
 $
 13,722
 $
 $
 ( 7,419)

 Deferred
 ( 44,504)
 ( 12,284)
 ( 13,825)

 ( 30,782)
 ( 12,061)
 ( 21,244)

 U.S. State and Local:

 Current
 5,641
 ( 9,716)
 5,401

 Deferred
 ( 12,189)
 7,137
 ( 5,827)

 ( 6,548)
 ( 2,579)
 ( 426)

 International:

 Current
 10,577
 8,745
 10,979

 Deferred
 5,878
 8,835
 ( 231)

 16,455
 17,580
 10,748

 Total current
 29,940
 ( 748)
 8,961

 Total deferred
 ( 50,815)
 3,688
 ( 19,883)

 Total (benefit) provision for income taxes

 $
 ( 20,875)
 $
 2,940
 $
 ( 10,922)

 Effective tax rate
 5.1
 %
 7.4
 %
 147.3
 %

 The effective tax rate for 2023 includes a benefit of $ 3 million on the aggregate $ 339 million goodwill impairment charge as the majority of this charge is nondeductible.
 The effective tax rate for 2022 includes a tax benefit of $ 5 million on the pre-tax gain of $ 5 million from the Borderfree sale as the tax basis was higher than book basis and a $ 1 million benefit associated with the 2019 sale of a business.

 The effective tax rate for 2021 includes benefits of $ 7 million from the resolution of tax matters, $ 5 million due to tax legislation in the U.K., $ 3 million from an affiliate reorganization and $ 2 million from the vesting of restricted stock, partially offset by charges of $ 6 million on the pre-tax gain of $ 10 million from the sale of a business as the tax basis was lower than the book basis and $ 1 million for the write-off of deferred tax assets associated with the expiration of out-of-the-money stock options.

 A reconciliation of income taxes computed at the federal statutory rate and our provision for income taxes consist of the following:

 2023
 2022
 2021

 Federal statutory provision
 $
 ( 85,366)
 $
 8,375
 $
 ( 1,558)

 State and local income taxes (1)

 ( 5,173)
 ( 1,612)
 ( 336)

 Impact of foreign operations taxed at rates other than the U.S. statutory rate (2)

 2,646
 3,349
 ( 2,220)

 Accrual/release of uncertain tax amounts related to foreign operations
 ( 2,829)
 ( 2,753)
 ( 7,288)

 U.S. tax impacts of foreign income in the U.S. (3)

 1,099
 1,089
 4,441

 CARES Act carryback benefit
 —
 —
 ( 2,270)

 Tax credits
 ( 1,683)
 ( 850)
 ( 500)

 Unrealized stock compensation benefits
 ( 505)

 Goodwill impairment
 68,557
 —
 —

 Borderfree tax basis differences
 —
 ( 5,610)
 —

 Other, net (4)

 1,300
 ( 686)

 (Benefit) provision for income taxes

 $
 ( 20,875)
 $
 2,940
 $
 ( 10,922)

 (1) Includes a benefit of $ 1 million related to tax resolutions and a benefit of $ 1 million for tax return true-ups for the year ended December 31, 2022.
 (2) Includes a charge of $ 2 million for a deferred rate change and a charge of $ 1 million for the establishment of a valuation allowance for the year ended December 31, 2022 and a benefit of $ 5 million for a deferred rate change for the year ended December 31, 2021.
 (3) Includes a benefit of $ 1 million for the year ended December 31, 2022 associated with the sale of a business.
 (4) Includes a $ 1 million charge associated with nondeductible officer compensation for the year ended December 31, 2023 and a $ 3 million benefit from an affiliate reorganization and a charge of $ 3 million related to the sale of a business for the year ended December 31, 2021.

 Deferred tax liabilities and assets consisted of the following:

 2023
 2022

 Deferred tax liabilities:

 Depreciation
 $
 ( 16,585)
 $
 ( 51,717)

 Deferred profit (for tax purposes) on sale to finance subsidiary
 ( 43,057)
 ( 26,765)

 Lease revenue and related depreciation
 ( 205,773)
 ( 216,282)

 Intangible assets
 ( 60,420)
 ( 65,916)

 Operating lease liability
 ( 76,910)
 ( 73,403)

 Basis adjustment in subsidiary

 ( 51,548)
 —

 Other
 ( 19,690)
 ( 27,366)

 Gross deferred tax liabilities
 ( 473,983)
 ( 461,449)

 Deferred tax assets:

 Postretirement medical benefits
 23,472
 24,892

 Pension
 15,042
 9,640

 Operating lease asset
 83,696
 78,765

 Long-term incentives
 11,814
 12,946

 Net operating and capital losses
 182,482
 130,640

 Tax credit carry forwards
 65,095

 Section 163j carryforward
 47,802
 23,917

 Tax uncertainties gross-up
 4,904
 4,982

 Other
 48,537
 50,345

 Gross deferred tax assets
 482,844
 402,383

 Less: Valuation allowance
 ( 159,342)
 ( 157,450)

 Net deferred tax assets
 323,502
 244,933

 Total deferred taxes, net
 $
 ( 150,481)
 $
 ( 216,516)

 The valuation allowance relates primarily to certain foreign, state and local net operating loss and tax credit carryforwards that will more-likely-than-not expire unutilized.

 We have a federal net operating loss carryforward of $ 3 million as of December 31, 2023, that have a 20 year carryforward period. We have net operating loss carryforwards in international jurisdictions of $ 390 million as of December 31, 2023, of which $ 138 million can be carried forward indefinitely and the remainder expire over the next 20 years. We also have net operating loss carryforwards in most states totaling $ 969 million that will expire over the next 20 years. In addition, we have tax credit carryforwards of $ 65 million, of which $ 52 million can be carried forward indefinitely and the remainder expire over the next 10 years.

 As of December 31, 2023, we assert that we are permanently reinvested in our pre-1987 and post-2017 undistributed earnings of $ 365 million as well as all other outside basis differences. While a determination of the full liability that would be incurred if these earnings were repatriated is not practicable, we have estimated the withholding taxes would be approximately $ 3 million.

 Uncertain Tax Positions
 A reconciliation of the amount of unrecognized tax benefits is as follows:

 2023
 2022
 2021

 Balance at beginning of year
 $
 33,300
 $
 45,072
 $
 50,064

 Increases from prior period positions
 3,016

 Decreases from prior period positions
 ( 524)
 ( 6,830)
 ( 4,247)

 Increases from current period positions

 Decreases relating to settlements with tax authorities
 ( 350)
 ( 1,966)
 ( 1,270)

 Reductions from lapse of applicable statute of limitations
 ( 2,937)
 ( 3,322)
 ( 2,983)

 Balance at end of year
 $
 30,232
 $
 33,300
 $
 45,072

 The amount of the unrecognized tax benefits at December 31, 2023, 2022 and 2021 that would affect the effective tax rate if recognized was $ 26 million, $ 29 million and $ 39 million, respectively.
 On a regular basis, we conclude tax return examinations, statutes of limitations expire, and court decisions interpret tax law. We regularly assess tax uncertainties in light of these developments. 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 15 % of our unrecognized tax benefits. We recognize interest and penalties related to uncertain tax positions in our provision for income taxes. Amounts included in our provision for income taxes related to interest and penalties on uncertain tax positions for each of the years ended December 31, 2023, 2022 and 2021 were not significant. We had approximately $ 4 million and $ 3 million accrued for the payment of interest and penalties at December 31, 2023 and 2022, respectively.

 Other Tax Matters
 With regard to U.S. Federal income tax, the Internal Revenue Service examination of our consolidated U.S. income tax returns for tax years prior to 2020 are closed to audit, except for review of the Tax Cuts and Jobs Act (TCJA) Sec 965 transition tax. On a state and local level, returns for most jurisdictions are closed through 2017. For our significant non-U.S. jurisdictions, Canada is closed to examination through 2018 except for a specific issue under current exam, and France, Germany and the U.K. are closed through 2019, 2016, and 2021 respectively. We also have other less significant tax filings currently subject to examination.
 We regularly assess the likelihood of tax adjustments in each of the tax jurisdictions in which we have operations and account for the related financial statement implications. We believe we have established tax reserves that are appropriate given the possibility of tax adjustments. However, determining the appropriate level of tax reserves requires judgment regarding the uncertain application of tax law and the possibility of tax adjustments. Future changes in tax reserve requirements could have a material positive or negative impact on our results of operations, financial position and cash flows.

 15. Commitments and Contingencies

 From time to time, in the ordinary course of business, we are involved in litigation pertaining 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 customers, employees, or others. Due to uncertainties inherent in litigation, any actions could have an adverse effect on our financial position, results of operations or cash flows; however, in management's opinion, the final outcome of outstanding matters will not have a material adverse effect on our business.

 16. Leased Assets and Liabilities

 We lease real estate and equipment under operating and finance lease agreements. Our leases have terms of up to 15 years, and may include renewal options. At lease commencement, a lease liability and corresponding right-of-use asset is recognized. Lease liabilities represent the present value of future lease payments over the expected lease term, including options to extend or terminate the lease when it is reasonably certain those options will be exercised. Lease payments include all fixed payments and variable payments tied to an index, but exclude costs such as common area maintenance charges, property taxes, insurance and mileage. The present value of the lease liability is determined using our incremental borrowing rate at lease commencement. Information regarding operating and financing leases is as follows:

 Leases
 Balance Sheet Location

 Assets

 Operating
 Operating lease assets
 $
 309,958
 $
 296,129

 Finance
 Property, plant and equipment, net
 51,049
 54,063

 Total leased assets
 $
 361,007
 $
 350,192

 Liabilities

 Operating
 Current operating lease liabilities
 $
 60,069
 $
 52,576

 Noncurrent operating lease liabilities
 277,981
 265,696

 Finance
 13,005
 11,690

 Other noncurrent liabilities
 40,530
 43,858

 Total lease liabilities
 $
 391,585
 $
 373,820

 Lease Cost
 2023
 2022
 2021

 Operating lease expense
 $
 87,876
 $
 67,041
 $
 62,269

 Finance lease expense

 Amortization of leased assets
 13,043
 12,321
 9,191

 Interest on lease liabilities
 3,407
 3,323
 2,826

 Variable lease expense
 28,018
 26,870
 33,924

 Sublease income
 ( 466)
 ( 1,086)
 ( 1,761)

 Total expense
 $
 131,878
 $
 108,469
 $
 106,449

 Operating lease expense includes immaterial amounts related to leases with terms of 12 months or less.

 Future Lease Payments
 Operating Leases
 Finance Leases
 Total

 2024

 $
 88,000
 $
 16,341
 $
 104,341

 2025

 82,817
 14,634
 97,451

 2026

 72,006
 12,516
 84,522

 2027

 62,721
 10,376
 73,097

 2028

 53,899
 7,008
 60,907

 71,379
 2,005
 73,384

 Total
 430,822
 62,880
 493,702

 Less: present value discount
 92,772
 9,345
 102,117

 Lease liability
 $
 338,050
 $
 53,535
 $
 391,585

 Future lease payments exclude $ 17 million of payments for leases signed but not yet commenced at December 31, 2023.

 Lease Term and Discount Rate

 Weighted-average remaining lease term

 Operating leases
 5.6 years
 6.4 years

 Finance leases
 4.4 years
 5.1 years

 Weighted-average discount rate

 Operating leases
 9.5 %
 8.2 %

 Finance leases
 7.7 %
 6.2 %

 Cash Flow Information
 2023
 2022
 2021

 Operating cash outflows - operating leases
 $
 84,024
 $
 65,012
 $
 59,748

 Operating cash outflows - finance leases
 $
 3,407
 $
 3,323
 $
 2,826

 Financing cash outflows - finance leases
 $
 12,154
 $
 11,091
 $
 7,707

 Leased assets obtained in exchange for new lease obligations

 Operating leases
 $
 74,778
 $
 135,359
 $
 48,662

 Finance leases
 $
 9,158
 $
 20,927
 $
 30,840

 17. Stockholders' Equity
 Retirement of Treasury Stock
 In December 2023, we retired 53 million shares of treasury stock and returned these shares to the status of unissued shares of common stock.

 The following table summarizes the changes in shares of Common Stock outstanding and Treasury Stock:

 Common Stock Outstanding
 Treasury Stock

 Balance at December 31, 2020
 171,975,188
 151,362,724

 Issuance of treasury stock
 2,756,207
 ( 2,756,207)

 174,731,395
 148,606,517

 Repurchases of common stock
 ( 2,750,000)
 2,750,000

 Issuance of treasury stock
 2,049,192
 ( 2,049,192)

 174,030,587
 149,307,325

 Retirement of treasury stock

 —
 ( 53,000,000)

 Issuance of treasury stock
 2,335,246
 ( 2,335,246)

 176,365,833
 93,972,079

 At December 31, 2023, 31,471,987 shares were reserved for issuance under our stock plans and dividend reinvestment program.

 18. Accumulated Other Comprehensive Loss

 Reclassifications out of accumulated other comprehensive loss were as follows:

 Gain (Loss) Reclassified from AOCL (a)

 2023
 2022
 2021

 Cash flow hedges

 Revenue
 $
 —
 $
 —
 $

 Cost of sales
 ( 33)
 ( 117)

 Interest expense
 9,708
 ( 366)

 Total before tax
 9,675
 ( 194)

 Tax provision (benefit)

 2,419
 ( 49)

 Net of tax
 $
 7,256
 $
 $
 ( 145)

 Available for sale securities

 Financing revenue
 $
 ( 11)
 $
 ( 9)
 $
 ( 6)

 Selling, general and administrative expense
 —
 —
 ( 7)

 Total before tax
 ( 11)
 ( 9)
 ( 13)

 Tax benefit

 ( 3)
 ( 2)
 ( 2)

 Net of tax
 $
 ( 8)
 $
 ( 7)
 $
 ( 11)

 Pension and Postretirement Benefit Plans (b)

 Prior service costs
 $
 ( 266)
 $
 ( 208)
 $
 ( 337)

 Actuarial losses
 ( 17,181)
 ( 39,999)
 ( 51,673)

 Settlement
 ( 746)
 ( 394)
 ( 551)

 Total before tax
 ( 18,193)
 ( 40,601)
 ( 52,561)

 Tax benefit
 ( 4,461)
 ( 9,315)
 ( 12,755)

 Net of tax
 $
 ( 13,732)
 $
 ( 31,286)
 $
 ( 39,806)

 (a) Amounts in parentheses indicate reductions to income and increases to other comprehensive income.
 (b) Reclassified from accumulated other comprehensive loss to other components of net pension and postretirement cost. These amounts are included in net periodic costs for defined benefit pension plans and postretirement medical benefit plans (see Note 14 for additional details).

 Changes in accumulated other comprehensive loss, net of tax, were as follows:

 Cash flow hedges
 Available-for-sale securities
 Pension and postretirement benefit plans
 Foreign currency adjustments
 Total

 Balance at December 31, 2020

 $
 ( 1,411)
 $
 $
 ( 851,063)
 $
 12,941
 $
 ( 839,131)

 Other comprehensive income (loss) before reclassifications

 5,069
 ( 6,662)
 54,618
 ( 34,168)
 18,857

 Amounts reclassified from accumulated other comprehensive loss
 39,806
 —
 39,962

 Net other comprehensive income (loss)

 5,214
 ( 6,651)
 94,424
 ( 34,168)
 58,819

 3,803
 ( 6,249)
 ( 756,639)
 ( 21,227)
 ( 780,312)

 Other comprehensive income (loss) before reclassifications

 9,246
 ( 33,198)
 9,297
 ( 71,344)
 ( 85,999)

 Amounts reclassified from accumulated other comprehensive loss
 ( 546)
 31,286
 —
 30,747

 Net other comprehensive income (loss)

 8,700
 ( 33,191)
 40,583
 ( 71,344)
 ( 55,252)

 12,503
 ( 39,440)
 ( 716,056)
 ( 92,571)
 ( 835,564)

 Other comprehensive (loss) income before reclassifications

 1,715
 5,969
 ( 55,128)
 25,279
 ( 22,165)

 Amounts reclassified from accumulated other comprehensive loss
 ( 7,256)
 13,732
 —
 6,484

 Net other comprehensive (loss) income

 ( 5,541)
 5,977
 ( 41,396)
 25,279
 ( 15,681)

 $
 6,962
 $
 ( 33,463)
 $
 ( 757,452)
 $
 ( 67,292)
 $
 ( 851,245)

 19. Stock-Based Compensation Plans

 We may grant restricted stock units, non-qualified stock options and other stock awards to eligible employees. All stock-based awards are approved by the Executive Compensation Committee of the Board of Directors. We settle stock awards with treasury shares. At December 31, 2023, there were 15,950,013 shares available for future grants.

 Restricted Stock Units
 Restricted stock units (RSUs) typically vest ratably over a three-year service period and entitle the holder to shares of common stock as the units vest. We may also grant RSUs to certain employees where vesting is contingent upon the achievement of certain performance targets. RSUs granted in 2023 included 1,513,928 awards subject to a performance target. The following table summarizes information about RSUs:

 2023
 2022

 Weighted average fair value
 Weighted average fair value

 Outstanding - beginning of the year
 7,197,755
 $
 6.09
 5,738,293
 $
 6.95

 Granted
 2,068,825
 4.19
 5,280,429
 4.82

 Vested
 ( 2,819,824)
 5.53
 ( 2,221,027)
 6.10

 Forfeited
 ( 921,563)
 5.63
 ( 1,599,940)
 4.69

 Outstanding - end of the year
 5,525,193
 $
 5.74
 7,197,755
 $
 6.09

 The fair value of RSUs is determined based on the stock price on the grant date less the present value of expected dividends. At December 31, 2023, there was $ 4 million of unrecognized compensation cost related to RSUs that is expected to be recognized over a weighted-average period of 1.2 years. The intrinsic value of RSUs outstanding at December 31, 2023 was $ 24 million. The fair value of RSUs vested during 2023, 2022 and 2021 was $ 12 million, $ 11 million and $ 22 million, respectively. During 2021, we granted 2,100,126 RSUs at a weighted average fair value of $ 8.36.

 In 2023 and 2022, RSUs granted include 222,833 and 158,416, respectively, to non-employee directors. These RSUs vest one year from the grant date.

 Performance Stock Units
 Performance stock units (PSUs) are stock awards where the number of shares ultimately awarded is based upon the attainment of certain performance targets and total shareholder return relative to peer companies. PSUs vest at the end of a three-year service period. Awards outstanding at December 31, 2023 represent awards that have been deferred and will be issued at a later date.

 2023
 2022

 Weighted average fair value
 Weighted average fair value

 Outstanding - beginning of the year
 811,620
 $
 9.57
 1,009,091
 $
 6.60

 Vested
 —
 —
 ( 197,471)
 6.73

 Outstanding - end of the year
 811,620
 $
 9.57
 811,620
 $
 9.57

 Stock Options
 Stock options are granted at an exercise price equal to or greater than the market price of our common stock on the grant date. Options vest ratably over three years and expire ten years from the grant date. We did not grant any options in 2023 or 2022; accordingly, at December 31, 2023, unrecognized compensation cost was not significant. The intrinsic value of options outstanding and exercisable at December 31, 2023 was not significant.

 The following table summarizes information about stock option activity:

 2023
 2022

 Per share weighted average exercise prices
 Per share weighted average exercise prices

 Options outstanding - beginning of the year
 10,027,048
 $
 9.91
 11,120,069
 $
 10.65

 Canceled
 ( 435,403)
 7.91
 ( 93,021)
 8.09

 Expired
 ( 440,000)
 20.27
 ( 1,000,000)
 18.29

 Options outstanding - end of the year
 9,151,645
 $
 9.50
 10,027,048
 $
 9.91

 Options exercisable - end of the year
 9,057,268
 $
 9.52
 8,912,286
 $
 10.42

 During 2021, 777,429 stock options were exercised at a weighted average fair value of $ 6.11.

 The following table provides additional information about stock options outstanding and exercisable at December 31, 2023:

 Options Outstanding
 Options Exercisable

 Range of per share exercise prices
 Per share weighted-average exercise price
 Weighted-average remaining contractual life
 Per share weighted-average exercise price
 Weighted-average remaining contractual life

 $ 3.98 - $ 6.60

 4,250,995
 $
 5.05
 5.5 years
 4,250,995
 $
 5.05
 5.5 years

 $ 8.55 - $ 8.76

 744,908
 $
 8.63
 6.7 years
 650,531
 $
 8.63
 6.7 years

 $ 12.64 - $ 21.54

 4,155,742
 $
 14.21
 3.0 years
 4,155,742
 $
 14.21
 3.0 years

 9,151,645
 $
 9.50
 4.5 years
 9,057,268
 $
 9.52
 4.5 years

 The following table lists the weighted average assumptions used to calculate the fair value of stock options granted in 2021:

 Expected dividend yield
 2.4
 %

 Expected stock price volatility
 70.0
 %

 Risk-free interest rate
 1.1
 %

 Expected life
 7 years

 Weighted-average fair value per option granted
 $ 4.53

 Fair value of options granted
 $ 3,342

 Employee Stock Purchase Plan (ESPP)
 We maintain a non-compensatory ESPP that enables substantially all U.S. and Canadian employees to purchase shares of our common stock at an offering price of 95 % of the average market price on the offering date. At no time will the exercise price be less than the lowest price permitted under Section 423 of the Internal Revenue Code. Employees purchased 371,982 shares and 381,229 shares in 2023 and 2022, respectively. We have reserved 1,065,516 common shares for future purchase under the ESPP.

 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
 (Dollars in thousands)

 Description
 Balance at beginning of year
 Additions charged to expense
 Deductions
 Balance at end of year

 Valuation allowance for deferred tax asset

 2023
 $
 157,450
 $
 9,826
 $
 ( 7,934)
 $
 159,342

 2022
 $
 121,778
 $
 44,188
 $
 ( 8,516)
 $
 157,450

 2021
 $
 116,543
 $
 7,490
 $
 ( 2,255)
 $
 121,778