Segment Information

Effective January 1, 2017, we revised our segment reporting to reflect a change in how we manage and report office shipping solutions, which we previously reported within the Global Ecommerce segment. The needs of retail and ecommerce clients differ from those of office shipping clients. Accordingly, we now report the results for office shipping solutions within Small & Medium Business Solutions and the retail and ecommerce shipping solutions remain in Global Ecommerce. We have recast prior period results 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 mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats 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 and parcel services for our large enterprise clients to qualify large mail and parcel volumes for postal worksharing discounts.

Digital Commerce Solutions:

Software Solutions: Includes the worldwide revenue and related expenses from the licensing of customer engagement, customer information and location intelligence software solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions.

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 that are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level and believes that it provides a useful measure of 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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
North America Mailing	$	341,096	$	343,218	$	696,674	$	714,671
International Mailing	95,322		107,581		188,380		212,567
Small & Medium Business Solutions	436,418		450,799		885,054		927,238
Production Mail	85,570		95,874		174,525		183,299
Presort Services	118,452		115,765		251,129		243,161
Enterprise Business Solutions	204,022		211,639		425,654		426,460
Software Solutions	86,425		90,464		164,645		168,386
Global Ecommerce	94,506		82,984		182,658		158,391
Digital Commerce Solutions	180,931		173,448		347,303		326,777
Total revenue	$	821,371	$	835,886	$	1,658,011	$	1,680,475



	EBIT
	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
North America Mailing	$	120,877		$	146,897		$	261,885		$	307,728
International Mailing	13,969			12,468			27,238			23,644
Small & Medium Business Solutions	134,846			159,365			289,123			331,372
Production Mail	7,631			12,914			16,595			19,738
Presort Services	19,270			21,214			49,987			50,124
Enterprise Business Solutions	26,901			34,128			66,582			69,862
Software Solutions	7,555			10,151			10,304			7,579
Global Ecommerce	(4,030		)	(683		)	(8,300		)	(4,152		)
Digital Commerce Solutions	3,525			9,468			2,004			3,427
Total segment EBIT	165,272			202,961			357,709			404,661
Reconciling items:
Interest, net	(40,443		)	(34,294		)	(79,093		)	(68,510		)
Unallocated corporate expenses	(50,134		)	(48,777		)	(105,290		)	(106,544		)
Restructuring charges and asset impairments, net	(26,927		)	(26,076		)	(29,009		)	(33,009		)
Gain from the sale of technology	6,085			—			6,085			—
Acquisition and disposition-related expenses	—			(576		)	—			(3,696		)
Income before income taxes	53,853			93,238			150,402			192,902
Provision for income taxes	4,952			33,394			36,368			70,418
Loss from discontinued operations, net of tax	—			(1,660		)	—			(1,660		)
Net income	$	48,901		$	58,184		$	114,034		$	120,824