Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

We conduct our business activities in seven reporting segments within two business groups, Small & Medium Business Solutions and Enterprise Business Solutions. The principal products and services of each of our reporting segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the U.S. and Canadian revenue and related expenses from the sale, rental and financing of our mail finishing, mail creation, shipping equipment and software; supplies; support and other professional services; and payment solutions.

International Mailing: Includes the revenue and related expenses from the sale, rental and financing of our mail finishing, mail creation, shipping equipment and software; supplies; support and other professional services; and payment solutions outside North America.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale, support and other professional services of our high-speed, production mail systems, sorting and production print equipment and related software.

Software: Includes the worldwide revenue and related expenses from the sale and support services of non-equipment-based mailing, customer relationship and communication and location intelligence software.

Management Services: Includes worldwide revenue and related expenses from facilities management services; secure mail services; reprographic, document management services; and litigation support and eDiscovery services.

Mail Services: Includes worldwide revenue and related expenses from presort mail services and cross-border mail services.

Marketing Services: Includes revenue and related expenses from direct marketing services for targeted customers.

Segment earnings before interest and taxes (EBIT), a non-GAAP measure, is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses not allocated to a particular business segment, restructuring charges, asset impairments and goodwill charges which are recognized on a consolidated basis. Management uses segment EBIT to measure profitability and performance at the segment level. Segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations.

Revenue and EBIT by business segment for the three and six months ended June 30,2012 and 2011 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenue:
North America Mailing	$	453,484	$	493,653	$	914,789	$	1,002,692
International Mailing	165,480		176,158		333,494		346,691
Small & Medium Business Solutions	618,964		669,811		1,248,283		1,349,383
Production Mail	123,067		133,769		238,083		265,375
Software	99,874		99,783		200,201		195,768
Management Services	227,561		240,461		458,191		482,085
Mail Services	140,507		134,273		290,663		278,556
Marketing Services	35,845		36,377		66,053		66,376
Enterprise Business Solutions	626,854		644,663		1,253,191		1,288,160
Total revenue	$	1,245,818	$	1,314,474	$	2,501,474	$	2,637,543

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
EBIT:
North America Mailing	$	167,870		$	175,786		$	346,041		$	355,447
International Mailing	21,758			26,735			41,755			49,928
Small & Medium Business Solutions	189,628			202,521			387,796			405,375
Production Mail	5,594			9,223			8,373			16,397
Software	8,487			9,542			19,179			15,054
Management Services	12,606			19,979			25,921			41,008
Mail Services	27,085			9,819			58,990			20,084
Marketing Services	7,503			6,792			12,320			10,952
Enterprise Business Solutions	61,275			55,355			124,783			103,495
Total EBIT	250,903			257,876			512,579			508,870
Reconciling items:
Interest, net (1)	(48,992		)	(48,527		)	(97,765		)	(99,122		)
Corporate and other expenses	(44,349		)	(45,179		)	(98,561		)	(85,380		)
Restructuring charges and asset impairments	(1,074		)	(4,994		)	(1,074		)	(31,018		)
Income from continuing operations before income taxes	$	156,488		$	159,176		$	315,179		$	293,350

(1) Includes financing interest expense, other interest expense and interest income.