Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

During 2013, we sold certain businesses and realigned our segment reporting to reflect the clients served, the solutions we offer, and how we manage, review, analyze and measure our operations. During the first quarter of 2014, we reclassified our shipping solutions operations from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment. Additionally, the DIS business, originally included in the North America Mailing segment was classified as a discontinued operation. Historical segment results have been recast to conform to our current segment presentation and to exclude discontinued operations. 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 of high-speed, high-volume inserting and sortation equipment and production printer systems and supplies to large enterprise clients to process inbound and outbound mail and related support and other professional services.

Presort Services: Includes 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, customer engagement, geocoding and location intelligence software; (ii) our shipping and cross-border ecommerce solutions; (iii) direct marketing services for targeted clients; and (iv) our digital mail delivery service offering.

We determine segment earnings before interest and taxes (EBIT) 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 other items, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management believes segment EBIT provides an analysis of our 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 consolidated results of operations.

Revenue and EBIT by business segment is presented below.

	Revenues
	Three Months Ended March 31,
	2014		2013
North America Mailing	$	381,027	$	388,836
International Mailing	153,268		152,976
Small & Medium Business Solutions	534,295		541,812
Production Mail	105,216		109,453
Presort Services	116,491		110,900
Enterprise Business Solutions	221,707		220,353
Digital Commerce Solutions	181,495		147,198
Total revenue	$	937,497	$	909,363

	EBIT
	Three Months Ended March 31,
	2014			2013
North America Mailing	$	160,338		$	148,458
International Mailing	24,819			17,390
Small & Medium Business Solutions	185,157			165,848
Production Mail	7,737			7,832
Presort Services	23,896			23,488
Enterprise Business Solutions	31,633			31,320
Digital Commerce Solutions	9,531			(279		)
Total EBIT	226,321			196,889
Reconciling items:
Interest, net (1)	(43,717		)	(48,010		)
Unallocated corporate expenses	(56,604		)	(41,893		)
Restructuring charges	(9,841		)	—
Other expense	(61,657		)	(25,121		)
Income from continuing operations before income taxes	$	54,502		$	81,865

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