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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
North America Mailing	$	319,966	$	349,785	$	1,016,640	$	1,064,456
International Mailing	93,770		96,730		282,150		309,297
Small & Medium Business Solutions	413,736		446,515		1,298,790		1,373,753
Production Mail	104,387		106,350		278,912		289,649
Presort Services	119,074		114,053		370,203		357,214
Enterprise Business Solutions	223,461		220,403		649,115		646,863
Software Solutions	99,442		89,031		264,087		257,417
Global Ecommerce	106,181		83,082		288,839		241,473
Digital Commerce Solutions	205,623		172,113		552,926		498,890
Total revenue	$	842,820	$	839,031	$	2,500,831	$	2,519,506



	EBIT
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
North America Mailing	$	107,777		$	141,968		$	369,662		$	449,696
International Mailing	8,729			9,198			35,967			32,842
Small & Medium Business Solutions	116,506			151,166			405,629			482,538
Production Mail	14,920			15,696			31,515			35,434
Presort Services	19,474			19,181			69,461			69,305
Enterprise Business Solutions	34,394			34,877			100,976			104,739
Software Solutions	20,912			10,329			31,216			17,908
Global Ecommerce	(9,594		)	1,544			(17,894		)	(2,608		)
Digital Commerce Solutions	11,318			11,873			13,322			15,300
Total segment EBIT	162,218			197,916			519,927			602,577
Reconciling items:
Interest, net	(41,230		)	(35,259		)	(120,323		)	(103,769		)
Unallocated corporate expenses	(38,848		)	(51,992		)	(144,138		)	(158,536		)
Restructuring charges and asset impairments, net	(1,493		)	(16,494		)	(30,502		)	(49,503		)
Gain from the sale of technology	—			—			6,085			—
Acquisition and disposition-related expenses	(5,682		)	(578		)	(5,682		)	(4,274		)
Income before income taxes	74,965			93,593			225,367			286,495
Provision for income taxes	17,607			23,197			53,975			93,615
Loss from discontinued operations, net of tax	—			(291		)	—			(1,951		)
Net income	$	57,358		$	70,105		$	171,392		$	190,929