Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As a result of the acquisition of Borderfree, Inc. (Borderfree) and the sale of Imagitas (see Note 3), we realigned our segment reporting to conform to the way we now manage our segments and recast prior period amounts to conform to the current year presentation. Our business continues to be organized around three distinct sets of solutions – Small and Medium Business (SMB) Solutions, Enterprise Business Solutions and Digital Commerce Solutions (DCS). Under the new segment reporting, there are no changes to SMB Solutions or Enterprise Business Solutions; however, within DCS, we now report Software Solutions and Global Ecommerce as reportable segments. The Other segment is comprised of our Marketing Services business, Imagitas, which was sold in May 2015. Imagitas was previously reported in DCS. 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 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 businesses to efficiently create mail and evidence postage in areas outside the U.S. and Canada.

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:

Software Solutions: Includes the worldwide revenue and related expenses from the sale of non-equipment-based mailing, customer information management, location intelligence and customer engagement solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from global ecommerce and shipping solutions.

We determine segment earnings before interest and taxes (EBIT) by deducting the related costs and expenses attributable to the segment from segment revenue. 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 a useful measure 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:

	Revenue
	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
North America Mailing	$	353,159	$	363,285	$	1,071,824	$	1,115,507
International Mailing	104,615		132,291		331,398		438,819
Small & Medium Business Solutions	457,774		495,576		1,403,222		1,554,326
Production Mail	101,646		113,497		298,880		330,469
Presort Services	115,912		111,434		351,365		339,205
Enterprise Business Solutions	217,558		224,931		650,245		669,674
Software Solutions	97,638		112,006		282,916		312,200
Global Ecommerce	96,571		71,870		249,923		204,399
Digital Commerce Solutions	194,209		183,876		532,839		516,599
Other	—		37,261		54,807		96,992
Total revenue	$	869,541	$	941,644	$	2,641,113	$	2,837,591

	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
North America Mailing	$	159,319		$	159,638		$	482,376		$	476,757
International Mailing	10,739			16,079			36,585			67,347
Small & Medium Business Solutions	170,058			175,717			518,961			544,104
Production Mail	12,401			9,570			31,461			27,865
Presort Services	25,908			21,927			76,946			68,235
Enterprise Business Solutions	38,309			31,497			108,407			96,100
Software Solutions	14,613			18,921			34,904			30,620
Global Ecommerce	(1,240		)	(676		)	9,962			9,100
Digital Commerce Solutions	13,373			18,245			44,866			39,720
Other	—			7,980			10,569			13,965
Total EBIT	221,740			233,439			682,803			693,889
Reconciling items:
Interest, net	(37,698		)	(41,825		)	(119,371		)	(127,437		)
Unallocated corporate expenses	(49,235		)	(61,470		)	(151,959		)	(163,532		)
Restructuring charges and asset impairments, net	(36		)	(4,526		)	(14,305		)	(22,666		)
Acquisition-related compensation expense	—			—			(10,483		)	—
Other income (expense), net	1,781			15,919			94,916			(45,738		)
Income from continuing operations before income taxes	$	136,552		$	141,537		$	481,601		$	334,516