Revenue

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregated Revenue

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

	Three Months Ended September 30, 2020
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	409,981	$	127,705	$	13,268	$	550,954	$	—	$	550,954
Support services	—		—		117,519		117,519		—		117,519
Financing	—		—		—		—		86,218		86,218
Equipment sales	—		—		17,935		17,935		61,637		79,572
Supplies	—		—		39,635		39,635		—		39,635
Rentals	—		—		—		—		18,000		18,000
Subtotal	409,981		127,705		188,357		726,043		$	165,855	$	891,898
Revenue from leasing transactions and financing
Financing	—		—		86,218		86,218
Equipment sales	—		—		61,637		61,637
Rentals	—		—		18,000		18,000
Total revenue	$	409,981	$	127,705	$	354,212	$	891,898
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	73,602	$	73,602
Products/services transferred over time	409,981		127,705		114,755		652,441
Total	$	409,981	$	127,705	$	188,357	$	726,043

	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
Business services	$	278,995	$	131,483	$	8,623	$	419,101	$	—	$	419,101
Support services	—		—		126,274		126,274		—		126,274
Financing	—		—		—		—		90,577		90,577
Equipment sales	—		—		19,062		19,062		70,556		89,618
Supplies	—		—		44,818		44,818		—		44,818
Rentals	—		—		—		—		19,737		19,737
Subtotal	278,995		131,483		198,777		609,255		$	180,870	$	790,125
Revenue from leasing transactions and financing
Financing	—		—		90,577		90,577
Equipment sales	—		—		70,556		70,556
Rentals	—		—		19,737		19,737
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	$	—	$	—	$	81,547	$	81,547
Products/services transferred over time	278,995		131,483		117,230		527,708
Total	$	278,995	$	131,483	$	198,777	$	609,255

	Nine Months Ended September 30, 2020
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	1,100,757	$	386,552	$	37,014	$	1,524,323	$	—	$	1,524,323
Support services	—		—		353,320		353,320		—		353,320
Financing	—		—		—		—		260,758		260,758
Equipment sales	—		—		49,556		49,556		164,126		213,682
Supplies	—		—		118,117		118,117		—		118,117
Rentals	—		—		—		—		55,458		55,458
Subtotal	1,100,757		386,552		558,007		2,045,316		$	480,342	$	2,525,658
Revenue from leasing transactions and financing
Financing	—		—		260,758		260,758
Equipment sales	—		—		164,126		164,126
Rentals	—		—		55,458		55,458
Total revenue	$	1,100,757	$	386,552	$	1,038,349	$	2,525,658
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	210,726	$	210,726
Products/services transferred over time	1,100,757		386,552		347,281		1,834,590
Total	$	1,100,757	$	386,552	$	558,007	$	2,045,316

	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
Business services	$	827,568	$	394,468	$	21,573	$	1,243,609	$	—	$	1,243,609
Support services	—		—		382,578		382,578		—		382,578
Financing	—		—		—		—		280,039		280,039
Equipment sales	—		—		59,739		59,739		205,217		264,956
Supplies	—		—		142,261		142,261		—		142,261
Rentals	—		—		—		—		60,339		60,339
Subtotal	827,568		394,468		606,151		1,828,187		$	545,595	$	2,373,782
Revenue from leasing transactions and financing
Financing	—		—		280,039		280,039
Equipment sales	—		—		205,217		205,217
Rentals	—		—		60,339		60,339
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	$	—	$	—	$	251,214	$	251,214
Products/services transferred over time	827,568		394,468		354,937		1,576,973
Total	$	827,568	$	394,468	$	606,151	$	1,828,187

Our performance obligations for revenue from products and services are as follows:

Business services includes providing mail processing services, shipping subscription solutions, fulfillment, delivery and return services and cross-border solutions. Revenue for mail processing services, fulfillment, delivery and return services and cross-border solutions is recognized over time as the services are provided and revenue for shipping subscription solutions is recognized ratably over the contract period. Contract terms for these services range from one to five years followed by annual renewal periods.

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

Equipment sales generally includes the sale of mailing and shipping equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment 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.

Supplies revenue is recognized upon delivery.

Revenue from leasing transactions and financing includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at Pitney Bowes Bank.

Advance Billings from Contracts with Customers

	Balance sheet location	September 30, 2020		December 31, 2019		Increase/ (decrease)
Advance billings, current	Advance billings	$	94,454	$	92,464	$	1,990
Advance billings, noncurrent	Other noncurrent liabilities	$	1,117	$	1,245	$	(128)

Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to support services on mailing equipment. Revenue recognized during the period includes $78 million of advance billings at the beginning of the period. Advance billings at September 30, 2020 and December 31, 2019 also includes $8 million and $9 million, respectively, from leasing transactions.

Future Performance Obligations

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

	Remainder of 2020		2021		2022-2025		Total
SendTech Solutions	$	73,963	$	263,673	$	388,235	$	725,871

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.