NYSE-listed Pitney Bowes Inc., announced last week that the company has completed a $1.1 billion settlement with the Internal Revenue Service relating to the sale of a business unit.
The postal equipment manufacturer said in a statement that the largest portion of the tax, nearly $900 million, resulted from the sale of its Capital Services leasing unit in July, which represents amounts owed on transactions the company entered into over the past 15 years.
This tax would have been due over the next 20 years, but the sale accelerated the time at which it must be paid. The remaining payments reflect taxes owed with respect to various other transactions. Pitney Bowes expects to pay about $1.1 billion of tax over the next six months.
"We are quite pleased to reach this resolution as it closes a chapter on a non-core business that we have sold," said Michael J. Critelli, Chairman and CEO of Pitney Bowes.
"This permits us to concentrate our energies on our growth strategies and makes it easier for investors to understand our financial position and growth potential," he added.
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