Business Segments

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

We conduct our operations by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. In accordance with FASB ASC 280, Segment Reporting, we report the two operating divisions as two reportable segments; Customer Interaction and Trillium Software. Our reportable segments are described below. Corporate expense consists primarily of pension, workers’ compensation expense and litigation items from businesses we no longer own.

Customer Interaction

Our Customer Interaction services offer a wide variety of integrated, multi-channel, data-driven marketing service solutions for our customers. We derive revenues by offering a full complement of capabilities and resources to provide these services in media from direct mail to email, including:

• agency and digital services;

• database marketing solutions and business-to-business lead generation;

• direct mail; and

• contact centers.

Customer Interaction’s largest cost components are labor, outsourced costs and mail supply chain costs.

Trillium Software

Trillium Software is a leading enterprise data quality solutions provider. Our full complement of technologies and services include global data profiling, data cleansing, enrichment, and data linking for e-business, customer relationship management, data governance, enterprise resource planning, supply chain management, data warehouse, and other enterprise applications. Revenues from the Trillium Software segment are comprised primarily of software, maintenance and professional services.

Trillium Software’s largest cost component is software development, which is comprised primarily of labor.

Information about the operations of our two business segments is as follows:

	Three Months Ended September 30,
In thousands	2015			2014
Operating revenues
Customer Interaction	$	108,784		$	121,078
Trillium Software	13,184			13,043
Total operating revenues	$	121,968		$	134,121
Operating income (loss)
Customer Interaction	$	(208,524	)	$	7,601
Trillium Software	3,502			3,318
Corporate	(416		)	(379		)
Total operating income (loss)	$	(205,438	)	$	10,540
Operating income (loss)	$	(205,438	)	$	10,540
Interest expense	1,339			716
Interest income	(46		)	(75		)
Other, net	(575		)	(581		)
Total income (loss) from operations before income taxes	$	(206,156	)	$	10,480

	Nine Months Ended September 30,
In thousands	2015			2014
Operating revenues
Customer Interaction	$	327,275		$	367,133
Trillium Software	38,211			40,025
Total operating revenues	$	365,486		$	407,158
Operating income (loss)
Customer Interaction	$	(201,956	)	$	18,743
Trillium Software	11,082			9,662
Corporate	(3,492		)	(2,299		)
Total operating income (loss)	$	(194,366	)	$	26,106
Operating income (loss)	$	(194,366	)	$	26,106
Interest expense	3,463			2,153
Interest income	(92		)	(204		)
Loss on sale	9,501			—
Other, net	536			1,228
Total income (loss) from operations before income taxes	$	(207,774	)	$	22,929