Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

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, financing and servicing of mailing equipment and supplies for small and medium sized 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, financing and servicing of mailing equipment and supplies for small and medium sized 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 production mail inserting and sortation equipment, high-speed production print systems, supplies and related support services to large enterprise clients to process inbound and outbound mail.

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 of non-equipment-based mailing, customer engagement, geocoding and location intelligence software and related support services; (ii) shipping and cross-border ecommerce solutions; and (iii) direct marketing services for targeted clients.

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 should be read in conjunction with our consolidated results of operations.

Revenue and EBIT by business segment is presented below.

	Revenue
	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
North America Mailing	$	363,285	$	381,685	$	1,115,507	$	1,162,718
International Mailing	132,291		141,332		438,819		444,665
Small & Medium Business Solutions	495,576		523,017		1,554,326		1,607,383
Production Mail	113,497		116,477		330,469		360,352
Presort Services	111,434		105,093		339,205		322,954
Enterprise Business Solutions	224,931		221,570		669,674		683,306
Digital Commerce Solutions	221,137		175,902		613,591		489,825
Total revenue	$	941,644	$	920,489	$	2,837,591	$	2,780,514

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
North America Mailing	$	159,638		$	158,692		$	476,757		$	464,668
International Mailing	16,079			15,627			67,347			53,092
Small & Medium Business Solutions	175,717			174,319			544,104			517,760
Production Mail	9,570			10,620			27,865			34,239
Presort Services	21,927			20,398			68,235			65,132
Enterprise Business Solutions	31,497			31,018			96,100			99,371
Digital Commerce Solutions	24,534			12,885			51,994			27,969
Total EBIT	231,748			218,222			692,198			645,100
Reconciling items:
Interest, net	(41,825		)	(45,519		)	(127,437		)	(142,525		)
Unallocated corporate expenses	(59,779		)	(50,194		)	(161,841		)	(145,216		)
Restructuring charges and asset impairments	(4,526		)	(34,909		)	(22,666		)	(53,940		)
Other income (expense)	15,919			—			(45,738		)	(25,121		)
Income from continuing operations before income taxes	$	141,537		$	87,600		$	334,516		$	278,298