Segment Information

6 Months Ended

Jun. 30, 2013

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, client relationship, and communication and location intelligence software.

Management Services: Includes primarily the U.S. and Canadian revenue and related expenses from facilities management services; secure mail services; reprographic, document management services; print outsourcing services; and litigation support and eDiscovery services.

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

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

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, restructuring charges and impairment charges, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management presents segment EBIT because it believes segment EBIT provides investors with an analysis of the company's operating performance and underlying trends of the businesses. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our condensed consolidated results of operations.

Prior period segment information in the tables below have been revised to reflect the International Management Services (PBMSi) business and International Mailing Services (IMS) operations as discontinued operations (see Note 4).

Revenue and EBIT by business segment was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Revenue:
North America Mailing	$	432,889	$	453,484	$	863,264	$	914,789
International Mailing	164,556		165,480		332,011		333,494
Small & Medium Business Solutions	597,445		618,964		1,195,275		1,248,283
Production Mail	144,986		123,067		263,788		238,083
Software	92,242		99,874		172,963		200,201
Management Services	174,708		180,562		351,278		360,702
Mail Services	119,058		108,045		237,913		222,681
Marketing Services	29,768		35,845		55,260		66,053
Enterprise Business Solutions	560,762		547,393		1,081,202		1,087,720
Total revenue	$	1,158,207	$	1,166,357	$	2,276,477	$	2,336,003

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
EBIT:
North America Mailing	$	166,363		$	167,870		$	320,868		$	346,041
International Mailing	19,285			21,758			37,034			41,755
Small & Medium Business Solutions	185,648			189,628			357,902			387,796
Production Mail	13,617			5,594			16,672			8,373
Software	15,729			8,487			20,619			19,179
Management Services	14,735			14,222			29,097			26,210
Mail Services	15,484			28,464			34,833			62,709
Marketing Services	4,181			7,503			6,167			12,320
Enterprise Business Solutions	63,746			64,270			107,388			128,791
Total EBIT	249,394			253,898			465,290			516,587
Reconciling items:
Interest, net (1)	(49,843		)	(48,992		)	(98,709		)	(97,765		)
Unallocated corporate and other expenses	(51,221		)	(44,349		)	(114,723		)	(98,561		)
Restructuring charges and asset impairments	(19,955		)	585			(19,955		)	585
Goodwill impairment	(97,787		)	—			(97,787		)	—
Income from continuing operations before income taxes	$	30,588		$	161,142		$	134,116		$	320,846

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