Segment Information

3 Months Ended

Mar. 31, 2013

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, client 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; print outsourcing services; and litigation support and eDiscovery services.

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

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

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. Segment information for our Mail Services segment for all periods presented has been restated to reflect the presentation of the International Mail Services (IMS) business as a discontinued operation (see Note 15).

Revenue and EBIT by business segment for the three months ended March 31, 2013 and 2012 was as follows:

	Three Months Ended March 31,
	2013		2012
Revenue:
North America Mailing	$	430,375	$	461,305
International Mailing	167,455		168,014
Small & Medium Business Solutions	597,830		629,319
Production Mail	118,802		115,016
Software	80,721		100,327
Management Services	225,256		230,630
Mail Services	118,855		114,636
Marketing Services	25,492		30,208
Enterprise Business Solutions	569,126		590,817
Total revenue	$	1,166,956	$	1,220,136

	Three Months Ended March 31,
	2013			2012
EBIT:
North America Mailing	$	154,505		$	178,171
International Mailing	17,749			19,997
Small & Medium Business Solutions	172,254			198,168
Production Mail	3,055			2,779
Software	4,890			10,692
Management Services	12,545			13,315
Mail Services	19,349			34,245
Marketing Services	1,986			4,817
Enterprise Business Solutions	41,825			65,848
Total EBIT	214,079			264,016
Reconciling items:
Interest, net (1)	(48,866		)	(48,773		)
Unallocated corporate and other expenses	(63,502		)	(54,214		)
Income from continuing operations before income taxes	$	101,711		$	161,029

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