Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

In 2013, as a result of the sale of certain businesses, we realigned our segment reporting to reflect the clients we serve, the solutions we offer, and how we manage, review, analyze and measure our operations. Further, in 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. Prior year segment reporting has been recast to conform to our current segment presentation. The principal products and services of each of our reportable 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) shipping and cross-border ecommerce solutions; (iii) direct marketing services for targeted clients; and (iv) 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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
North America Mailing	$	371,194	$	392,197	$	752,221	$	781,033
International Mailing	153,260		150,357		306,528		303,333
Small & Medium Business Solutions	524,454		542,554		1,058,749		1,084,366
Production Mail	111,756		134,422		216,972		243,875
Presort Services	111,281		106,961		227,772		217,861
Enterprise Business Solutions	223,037		241,383		444,744		461,736
Digital Commerce Solutions	210,959		166,725		392,454		313,923
Total revenue	$	958,450	$	950,662	$	1,895,947	$	1,860,025

	EBIT
	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
North America Mailing	$	156,781		$	157,518		$	317,119		$	305,976
International Mailing	26,449			20,075			51,268			37,465
Small & Medium Business Solutions	183,230			177,593			368,387			343,441
Production Mail	10,558			15,787			18,295			23,619
Presort Services	22,412			21,246			46,308			44,734
Enterprise Business Solutions	32,970			37,033			64,603			68,353
Digital Commerce Solutions	17,929			15,363			27,460			15,084
Total EBIT	234,129			229,989			460,450			426,878
Reconciling items:
Interest, net (1)	(41,895		)	(48,996		)	(85,612		)	(97,006		)
Unallocated corporate expenses	(45,458		)	(53,129		)	(102,062		)	(95,022		)
Restructuring charges	(8,299		)	(19,031		)	(18,140		)	(19,031		)
Other expense	—			—			(61,657		)	(25,121		)
Income from continuing operations before income taxes	$	138,477		$	108,833		$	192,979		$	190,698

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