Revenue

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregated Revenue

The following tables disaggregate our revenue by major source and timing of recognition:



	Three Months Ended September 30, 2019
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Equipment sales	$	—	$	—	$	19,062	$	19,062	$	70,556	$	89,618
Supplies	—		—		44,818		44,818		—		44,818
Rentals	—		—		—		—		19,737		19,737
Financing	—		—		—		—		90,577		90,577
Support services	—		—		126,274		126,274		—		126,274
Business services	278,995		131,483		8,623		419,101		—		419,101
Subtotal	278,995		131,483		198,777		609,255		$	180,870	$	790,125

Revenue from leasing transactions and financing
Equipment sales	—		—		70,556		70,556
Rentals	—		—		19,737		19,737
Financing	—		—		90,577		90,577
Total revenue	$	278,995	$	131,483	$	379,647	$	790,125

Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	63,880	$	63,880
Products/services transferred over time	278,995		131,483		134,897		545,375
Total	$	278,995	$	131,483	$	198,777	$	609,255



	Three Months Ended September 30, 2018
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Equipment sales	$	—	$	—	$	20,428	$	20,428	$	68,371	$	88,799
Supplies	—		—		50,403		50,403		—		50,403
Rentals	—		—		—		—		21,432		21,432
Financing	—		—		—		—		96,799		96,799
Support services	—		—		138,055		138,055		—		138,055
Business services	232,845		125,334		6,614		364,793		—		364,793
Subtotal	232,845		125,334		215,500		573,679		$	186,602	$	760,281

Revenue from leasing transactions and financing
Equipment sales	—		—		68,371		68,371
Rentals	—		—		21,432		21,432
Financing	—		—		96,799		96,799
Total revenue	$	232,845	$	125,334	$	402,102	$	760,281

Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	70,831	$	70,831
Products/services transferred over time	232,845		125,334		144,669		502,848
Total	$	232,845	$	125,334	$	215,500	$	573,679



	Nine Months Ended September 30, 2019
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Equipment sales	$	—	$	—	$	59,739	$	59,739	$	205,217	$	264,956
Supplies	—		—		142,261		142,261		—		142,261
Rentals	—		—		—		—		60,339		60,339
Financing	—		—		—		—		280,039		280,039
Support services	—		—		382,578		382,578		—		382,578
Business services	827,568		394,468		21,573		1,243,609		—		1,243,609
Subtotal	827,568		394,468		606,151		1,828,187		$	545,595	$	2,373,782

Revenue from leasing transactions and financing
Equipment sales	—		—		205,217		205,217
Rentals	—		—		60,339		60,339
Financing	—		—		280,039		280,039
Total revenue	$	827,568	$	394,468	$	1,151,746	$	2,373,782

Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	202,000	$	202,000
Products/services transferred over time	827,568		394,468		404,151		1,626,187
Total	$	827,568	$	394,468	$	606,151	$	1,828,187



	Nine Months Ended September 30, 2018
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Equipment sales	$	—	$	—	$	64,482	$	64,482	$	224,836	$	289,318
Supplies	—		—		165,853		165,853		—		165,853
Rentals	—		—		—		—		65,852		65,852
Financing	—		—		—		—		294,277		294,277
Support services	—		—		417,303		417,303		—		417,303
Business services	718,535		382,522		20,448		1,121,505		—		1,121,505
Subtotal	718,535		382,522		668,086		1,769,143		$	584,965	$	2,354,108

Revenue from leasing transactions and financing
Equipment sales	—		—		224,836		224,836
Rentals	—		—		65,852		65,852
Financing	—		—		294,277		294,277
Total revenue	$	718,535	$	382,522	$	1,253,051	$	2,354,108

Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	230,335	$	230,335
Products/services transferred over time	718,535		382,522		437,751		1,538,808
Total	$	718,535	$	382,522	$	668,086	$	1,769,143

Our performance obligations are as follows:

Equipment sales and supplies: Performance obligations generally include the sale of mailing equipment, excluding sales-type leases, and supplies. We recognize revenue upon delivery for self-install equipment and supplies and upon acceptance or installation for other equipment. We provide a warranty that our equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

Support services: Performance obligations include providing maintenance, professional services, and subscription and meter services for our mailing equipment. Contract terms range from one year to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance, subscription and meter services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

Business services: Performance obligations include providing mail processing services and ecommerce solutions. Revenue is recognized over time as the services are provided. The contract terms for these services vary, with the initial contracts in the range of one to five years, followed by annual renewal periods.

Revenue from leasing transactions and financing includes revenue from equipment accounted for as sales-type leases and operating leases, finance income and late fees.

Advance Billings from Contracts with Customers



	Balance sheet location	September 30, 2019		December 31, 2018		Increase (decrease)
Advance billings, current	Advance billings	$	97,666	$	111,829	$	(14,163	)
Advance billings, noncurrent	Other noncurrent liabilities	$	1,413	$	1,985	$	(572	)

Advance billings are recorded when cash payments are due in advance of our performance. Items in advance billings primarily relate to support services on equipment and subscription services. Revenue is recognized ratably over the contract term.

The net decrease in advance billings at September 30, 2019 is due to revenue recognized during the period in excess of advance billings. Revenue recognized during the period includes $114 million of advance billings at the beginning of the period, partially offset by advance billings in the quarter.

Future Performance Obligations

Future performance obligations include revenue streams bundled with our leasing contracts, primarily maintenance, meter services and other subscription services. The transaction prices allocated to future performance obligations will be recognized as follows:



	Remainder of 2019		2020		2021-2024		Total
SendTech Solutions	$	77,171	$	272,621	$	421,746	$	771,538

The table above does not include revenue related to performance obligations for contracts with terms less than 12 months and expected consideration for those performance obligations where revenue is recognized based on the amount billable to the customer.