Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

During the third quarter of 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect the clients served and how we review, analyze, measure and manage our operations. There were no changes to the Small & Medium Business Solutions group, but certain business activities within our Enterprise Business Solutions group were consolidated under a new reporting segment, Digital Commerce Solutions. Historical segment results have been recast to conform to our current presentation and to exclude discontinued operations (see Note 4). The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and supplies for small and medium size businesses to efficiently create mail and evidence postage in areas 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 sorting and production print equipment and production mail systems to large enterprise clients to process inbound and outbound mail.

Presort Services: Includes worldwide revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts.

Digital Commerce Solutions:

Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software; (ii) direct marketing services for targeted clients; (iii) our digital mail delivery service offering (Volly^TM); and (iv) our cross-border e-commerce solutions.

Segment earnings before interest and taxes (EBIT) 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.

Revenue and EBIT by business segment was as follows:

	Revenues
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
North America Mailing	$	422,821	$	447,920	$	1,286,085	$	1,362,709
International Mailing	142,443		141,630		448,684		449,583
Small & Medium Business Solutions	565,264		589,550		1,734,769		1,812,292
Production Mail	116,477		114,889		360,352		337,582
Presort Services	105,093		105,909		322,954		322,401
Enterprise Business Solutions	221,570		220,798		683,306		659,983
Digital Commerce Solutions	151,952		139,441		420,139		427,273
Total revenue	$	938,786	$	949,789	$	2,838,214	$	2,899,548

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
North America Mailing	$	167,433		$	168,934		$	488,301		$	514,975
International Mailing	15,456			11,206			52,967			51,670
Small & Medium Business Solutions	182,889			180,140			541,268			566,645
Production Mail	10,620			10,125			34,239			28,439
Presort Services	20,398			19,167			65,132			82,728
Enterprise Business Solutions	31,018			29,292			99,371			111,167
Digital Commerce Solutions	10,196			2,971			20,134			23,674
Total EBIT	224,103			212,403			660,773			701,486
Reconciling items:
Interest, net (1)	(46,357		)	(45,088		)	(145,066		)	(142,853		)
Unallocated corporate and other expenses	(50,196		)	(44,185		)	(170,340		)	(151,154		)
Restructuring charges and asset impairments	(34,909		)	—			(53,940		)	980
Income from continuing operations before income taxes	$	92,641		$	123,130		$	291,427		$	408,459

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