Revenue

6 Months Ended

Jun. 30, 2022

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 June 30, 2022
	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	$	393,770	$	138,934	$	18,774	$	551,478	$	—	$	551,478
Support services	—		—		107,625		107,625		—		107,625
Financing	—		—		—		—		67,298		67,298
Equipment sales	—		—		21,400		21,400		68,586		89,986
Supplies	—		—		38,245		38,245		—		38,245
Rentals	—		—		—		—		16,863		16,863
Subtotal	393,770		138,934		186,044		718,748		$	152,747	$	871,495
Revenue from leasing transactions and financing	—		—		152,747		152,747
Total revenue	$	393,770	$	138,934	$	338,791	$	871,495
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	76,153	$	76,153
Products/services transferred over time	393,770		138,934		109,891		642,595
Total	$	393,770	$	138,934	$	186,044	$	718,748

	Three Months Ended June 30, 2021
	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	$	418,429	$	134,619	$	13,974	$	567,022	$	—	$	567,022
Support services	—		—		115,156		115,156		—		115,156
Financing	—		—		—		—		73,453		73,453
Equipment sales	—		—		22,394		22,394		63,873		86,267
Supplies	—		—		38,655		38,655		—		38,655
Rentals	—		—		—		—		18,650		18,650
Subtotal	418,429		134,619		190,179		743,227		$	155,976	$	899,203
Revenue from leasing transactions and financing	—		—		155,976		155,976
Total revenue	$	418,429	$	134,619	$	346,155	$	899,203
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	77,275	$	77,275
Products/services transferred over time	418,429		134,619		112,904		665,952
Total	$	418,429	$	134,619	$	190,179	$	743,227

	Six Months Ended June 30, 2022
	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	$	812,297	$	299,478	$	37,087	$	1,148,862	$	—	$	1,148,862
Support services	—		—		217,977		217,977		—		217,977
Financing	—		—		—		—		139,327		139,327
Equipment sales	—		—		42,699		42,699		136,583		179,282
Supplies	—		—		79,306		79,306		—		79,306
Rentals	—		—		—		—		33,683		33,683
Subtotal	812,297		299,478		377,069		1,488,844		$	309,593	$	1,798,437
Revenue from leasing transactions and financing	—		—		309,593		309,593
Total revenue	$	812,297	$	299,478	$	686,662	$	1,798,437
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	154,526	$	154,526
Products/services transferred over time	812,297		299,478		222,543		1,334,318
Total	$	812,297	$	299,478	$	377,069	$	1,488,844

	Six Months Ended June 30, 2021
	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	$	831,515	$	277,745	$	28,216	$	1,137,476	$	—	$	1,137,476
Support services	—		—		233,853		233,853		—		233,853
Financing	—		—		—		—		151,265		151,265
Equipment sales	—		—		41,511		41,511		131,559		173,070
Supplies	—		—		80,879		80,879		—		80,879
Rentals	—		—		—		—		37,857		37,857
Subtotal	831,515		277,745		384,459		1,493,719		$	320,681	$	1,814,400
Revenue from leasing transactions and financing	—		—		320,681		320,681
Total revenue	$	831,515	$	277,745	$	705,140	$	1,814,400
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	154,811	$	154,811
Products/services transferred over time	831,515		277,745		229,648		1,338,908
Total	$	831,515	$	277,745	$	384,459	$	1,493,719

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

Business services includes fulfillment, delivery and return services, cross-border solutions, mail processing services and shipping subscription solutions. Revenue for fulfillment, delivery and return services and cross-border solutions and mail processing services is recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Contract terms for these services initially range from one to five years and contain annual renewal options. Revenue for shipping subscription solutions revenue is recognized ratably over the contract period as the client obtains equal benefit from these services through the period.

Support services includes providing maintenance, professional and subscription services for our equipment and digital mailing and shipping technology 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 the equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

Supplies revenue includes revenue from supplies for our mailing equipment and 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 the Bank.

Advance Billings from Contracts with Customers

	Balance sheet location	June 30, 2022		December 31, 2021		Increase/ (decrease)
Advance billings, current	Advance billings	$	88,504	$	92,926	$	(4,422)
Advance billings, noncurrent	Other noncurrent liabilities	$	996	$	1,109	$	(113)

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 $73 million of advance billings at the beginning of the period. Advance billings, current reported on the condensed consolidated balance sheets at June 30, 2022 and December 31, 2021 also includes $8 million and $6 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 2022		2023		2024-2027		Total
SendTech Solutions	$	139,124	$	229,620	$	308,281	$	677,025

The amounts above do not include revenue for performance obligations under contracts with terms less than 12 months or revenue for performance obligations where revenue is recognized based on the amount billable to the customer.