Pitney Bowes (PBI)

Income taxes / effective tax rate

The effective tax rate declined 8.1% in 2008 primarily as a result of a $54 million tax charge in 2007 related principally to a valuation allowance for certain deferred tax assets and tax rate changes outside the U.S.

Income taxes / effective tax rate

The effective tax rate for continuing operations for 2007 included $54 million of tax charges related principally to a valuation allowance for certain deferred tax assets and tax rate changes outside the U.S. The effective tax rate for 2006 included a $20 million charge related to the IRS settlement discussed in Note 9 to the Consolidated Financial Statements.

Income Taxes / Effective Tax Rate

The effective tax rate was 37.2% for the first quarter of 2008 compared to 34.5% for the first quarter of 2007. The higher effective tax rate principally resulted from an additional tax accrual of $6.5 million associated with lease refunds in the U.K. and Ireland.

Income taxes / effective tax rate

The reduction in our 2006 effective tax rate was primarily due to the COLI tax reserve that was recorded in 2005.

Income Taxes / Effective Tax Rate

The effective tax rate was 34.5% for both the first quarter of 2007 and the prior year.

Income taxes / effective tax rate

In 2005, the effective tax rate increased by 6.5% due to a $56 million increase in our tax reserve related to an adverse court opinion that another company received related to the tax treatment of COLI. This was partially offset by tax benefits of 0.4% from restructuring charges and 0.8% from favorable adjustments to the Capital Services tax provisions. The effective tax rate in 2004 included tax benefits of 1.0% from restructuring charges.