Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

We conduct our business activities in seven reporting segments within two business groups, Small & Medium Business Solutions and Enterprise Business Solutions. The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the U.S. and Canadian revenue and related expenses from the sale, rental and financing of our mail finishing, mail creation, shipping equipment and software; supplies; support and other professional services; and payment solutions.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of our mail finishing, mail creation, shipping equipment and software; supplies; support and other professional services; and payment solutions outside North America.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed, production mail systems, sorting and production print equipment and related software.

Software: Includes the worldwide revenue and related expenses from the sale and support services of non-equipment-based mailing, customer relationship and communication and location intelligence software.

Management Services: Includes worldwide revenue and related expenses from facilities management services; secure mail services; reprographic, document management services; and litigation support and eDiscovery services.

Mail Services: Includes worldwide revenue and related expenses from presort mail services and cross-border mail services.

Marketing Services: Includes revenue and related expenses from direct marketing services for targeted customers.

Segment earnings before interest and taxes (EBIT), a non-GAAP measure, is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses not allocated to a particular business segment, restructuring charges, asset impairments and goodwill charges which are recognized on a consolidated basis. Management uses segment EBIT to measure profitability and performance at the segment level. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations.

Revenue and EBIT by business segment for the three and nine months ended September 30, 2012 and 2011 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Revenue:
North America Mailing	$	447,920	$	475,663	$	1,362,709	$	1,478,355
International Mailing	154,171		177,797		487,665		524,488
Small & Medium Business Solutions	602,091		653,460		1,850,374		2,002,843
Production Mail	122,251		117,220		360,334		382,595
Software	88,629		109,153		288,830		304,921
Management Services	220,887		235,428		679,078		717,513
Mail Services	142,182		143,055		432,845		421,611
Marketing Services	39,637		41,408		105,690		107,784
Enterprise Business Solutions	613,586		646,264		1,866,777		1,934,424
Total revenue	$	1,215,677	$	1,299,724	$	3,717,151	$	3,937,267

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
EBIT:
North America Mailing	$	168,934		$	177,280		$	514,975		$	532,727
International Mailing	11,286			25,105			53,041			75,033
Small & Medium Business Solutions	180,220			202,385			568,016			607,760
Production Mail	3,555			(3,426		)	11,928			12,971
Software	956			16,564			20,135			31,618
Management Services	10,266			18,248			36,187			59,256
Mail Services	16,671			35,107			75,661			55,191
Marketing Services	9,297			8,716			21,617			19,668
Enterprise Business Solutions	40,745			75,209			165,528			178,704
Total EBIT	220,965			277,594			733,544			786,464
Reconciling items:
Interest, net (1)	(45,088		)	(49,097		)	(142,853		)	(148,219		)
Corporate and other expenses	(39,960		)	(50,046		)	(138,521		)	(135,426		)
Restructuring charges and asset impairments	(9,986		)	(32,956		)	(11,060		)	(63,974		)
Goodwill impairment	(18,315		)	(45,650		)	(18,315		)	(45,650		)
Income from continuing operations before income taxes	$	107,616		$	99,845		$	422,795		$	393,195

(1) Includes financing interest expense, other interest expense and interest income.