Segment Information

In January 2018, we revised our business reporting groups to reflect how we manage these groups and clients served in each market. We formed the Commerce Services group to include our Global Ecommerce and Presort Services segments. Additionally, we classified the operating results of the Production Mail Business to discontinued operations and have recast prior year segment operating results to conform to the current year presentation. The principal products and services of each reportable segment are as follows:

Commerce Services:

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

Presort Services: Includes revenue and related expenses from sortation services that allow clients to qualify large volumes of First Class Mail, Marketing Mail and Bound and Packet Mail (Standard Flats and Bound Printed Matter) for postal worksharing discounts.

Small & Medium Business (SMB) Solutions:

North America Mailing: Includes the revenue and related expenses from mailing and shipping solutions, financing, services and supplies for small and medium businesses to efficiently create 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 shipping solutions, financing, services and supplies for small and medium businesses to efficiently create 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.

Software Solutions:

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

Management uses segment earnings before interest and taxes (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 business. We determine segment 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 not allocated to a particular business segment. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations. The following tables provide information about our reportable segments and reconciliation of segment EBIT to net income.



	Revenues
	Years Ended December 31,
	2018		2017		2016
Global Ecommerce	$	1,022,862	$	552,242	$	339,320
Presort Services	515,795		497,901		475,582
Commerce Services	1,538,657		1,050,143		814,902
North America Mailing	1,275,025		1,357,405		1,429,027
International Mailing	367,843		384,097		412,244
SMB Solutions	1,642,868		1,741,502		1,841,271
Software Solutions	340,855		331,627		325,150
Total Revenue	$	3,522,380	$	3,123,272	$	2,981,323

Geographic data:
United States	$	2,865,228	$	2,466,403	$	2,299,607
Outside United States	657,152		656,869		681,716
Total	$	3,522,380	$	3,123,272	$	2,981,323



	EBIT
	Years Ended December 31,
	2018			2017			2016
Global Ecommerce	$	(32,379	)	$	(17,899	)	$	3,043
Presort Services	73,768			97,506			95,258
Commerce Services	41,389			79,607			98,301
North America Mailing	470,268			498,571			594,723
International Mailing	63,820			48,531			45,408
SMB Solutions	534,088			547,102			640,131
Software Solutions	47,094			33,818			22,119
Total segment EBIT	622,571			660,527			760,551
Reconciling items:
Interest, net	(159,757		)	(164,162		)	(144,211		)
Unallocated corporate expenses	(180,481		)	(214,072		)	(199,954		)
Restructuring charges and asset impairments, net	(27,077		)	(56,223		)	(60,295		)
Goodwill impairment	—			—			(148,181		)
Pension settlement	(31,329		)	—			—
Gain on sale of technology	—			6,085			—
Transaction costs	(3,602		)	(6,384		)	(6,121		)
Other expense	(7,964		)	(3,856		)	—
Income from continuing operations before income taxes	212,361			221,915			201,789
Provision for income taxes	12,383			553			106,975
Income from discontinued operations, net of tax	23,687			39,978			17,036
Net income	$	223,665		$	261,340		$	111,850



	Depreciation and amortization
	Years Ended December 31,
	2018		2017			2016
Global Ecommerce	$	61,046	$	36,662		$	30,607
Presort Services	26,838		26,541			27,929
Commerce Services	87,884		63,203			58,536
North America Mailing	68,250		64,803			60,066
International Mailing	16,142		18,562			19,431
SMB Solutions	84,392		83,365			79,497
Software Solutions	9,540		8,978			14,621
Total for reportable segments	181,816		155,546			152,654
Unallocated amounts	21,477		24,104			21,411
Total depreciation and amortization	$	203,293	$	179,650	—	$	174,065



	Capital expenditures
	Years Ended December 31,
	2018		2017		2016
Global Ecommerce	$	46,117	$	26,810	$	15,647
Presort Services	42,532		20,860		17,537
Commerce Services	88,649		47,670		33,184
North America Mailing	61,458		69,131		83,547
International Mailing	10,701		11,982		3,163
SMB Solutions	72,159		81,113		86,710
Software Solutions	4,251		9,181		4,617
Total for reportable segments	165,059		137,964		124,511
Unallocated amount	26,385		30,133		34,721
Total capital expenditures	$	191,444	$	168,097	$	159,232



	Assets
	December 31,
	2018		2017		2016
Global Ecommerce	$	1,023,732	$	1,016,045	$	449,363
Presort Services	431,512		387,701		373,443
Commerce Services	1,455,244		1,403,746		822,806
North America Mailing	1,859,355		1,965,198		2,073,344
International Mailing	502,370		550,306		521,003
SMB Solutions	2,361,725		2,515,504		2,594,347
Software Solutions	593,050		583,549		569,414
Total for reportable segments	4,410,019		4,502,799		3,986,567
Cash and cash equivalents	867,262		1,009,021		764,522
Short-term investments	59,391		48,988		38,448
Assets of discontinued operations	4,854		334,848		317,333
Other corporate assets	631,377		791,764		730,263
Consolidated assets	$	5,972,903	$	6,687,420	$	5,837,133



Identifiable long-lived assets:
United States	$	543,118	$	501,251	$	436,795
Outside United States	45,095		56,208		58,339
Total	$	588,213	$	557,459	$	495,134