Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As a result of the acquisition of Borderfree Inc. (Borderfree) and the sale of Imagitas (see Note 3), we realigned our segment reporting to conform to the way we now manage our segments and recast prior period amounts to conform to the current year presentation. Our business continues to be organized around three distinct sets of solutions – Small and Medium Business (SMB) Solutions, Enterprise Business Solutions and Digital Commerce Solutions (DCS). Under the new segment reporting, there are no changes to SMB Solutions or Enterprise Business Solutions; however, within DCS, we now report Software Solutions and Global Ecommerce Solutions as reportable segments. Other is comprised of our Marketing Services business, Imagitas, which was sold in May 2015. Imagitas was previously reported in DCS. The principal products and services of each of our reportable segments are as follows:

Small & Medium Business Solutions:

North America Mailing: Includes the revenue and related expenses from the sale, rental, financing and servicing of mailing equipment and supplies for small and medium businesses to efficiently create mail and evidence postage in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from the sale, rental, financing and servicing of mailing equipment and supplies for small and medium businesses to efficiently create mail and evidence postage in areas outside the U.S. and Canada.

Enterprise Business Solutions:

Production Mail: Includes the worldwide revenue and related expenses from the sale of production mail inserting and sortation equipment, high-speed production print systems, supplies and related support services to large enterprise clients to process inbound and outbound mail.

Presort Services: Includes revenue and related expenses from presort mail services for our large enterprise clients to qualify large mail volumes for postal worksharing discounts.

Digital Commerce Solutions:

Software Solutions: Includes the worldwide revenue and related expenses from the sale of non-equipment-based mailing, customer information management, location intelligence and customer engagement solutions and related support services.

Global Ecommerce Solutions: Includes the worldwide revenue and related expenses from global ecommerce and shipping solutions.

We determine segment earnings before interest and taxes (EBIT) by deducting the related costs and expenses attributable to the segment from segment revenue. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges and other items, which are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level. Management believes segment EBIT provides a useful measure of our operating performance and underlying trends of the businesses. 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 is presented below:

	Revenue
	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
North America Mailing	$	356,791	$	371,194	$	718,665	$	752,221
International Mailing	110,610		153,260		226,783		306,528
Small & Medium Business Solutions	467,401		524,454		945,448		1,058,749
Production Mail	97,731		111,756		197,234		216,972
Presort Services	113,922		111,281		235,453		227,772
Enterprise Business Solutions	211,653		223,037		432,687		444,744
Software Solutions	99,041		108,820		185,278		200,194
Global Ecommerce	77,966		68,653		153,352		132,529
Digital Commerce Solutions	177,007		177,473		338,630		332,723
Other	24,830		33,486		54,807		59,731
Total revenue	$	880,891	$	958,450	$	1,771,572	$	1,895,947

	EBIT
	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
North America Mailing	$	159,392		$	156,781		$	323,057		$	317,119
International Mailing	14,122			26,449			25,846			51,268
Small & Medium Business Solutions	173,514			183,230			348,903			368,387
Production Mail	10,028			10,558			19,060			18,295
Presort Services	23,544			22,412			51,038			46,308
Enterprise Business Solutions	33,572			32,970			70,098			64,603
Software Solutions	16,158			9,877			20,291			11,699
Global Ecommerce	3,056			3,749			11,202			9,776
Digital Commerce Solutions	19,214			13,626			31,493			21,475
Other	5,611			4,303			10,569			5,985
Total EBIT	231,911			234,129			461,063			460,450
Reconciling items:
Interest, net	(38,839		)	(41,895		)	(81,673		)	(85,612		)
Unallocated corporate expenses	(51,921		)	(45,458		)	(102,724		)	(102,062		)
Restructuring charges and asset impairments, net	(14,350		)	(8,299		)	(14,269		)	(18,140		)
Acquisition-related compensation expense	(10,483		)	—			(10,483		)	—
Other income (expense), net	93,135			—			93,135			(61,657		)
Income from continuing operations before income taxes	$	209,453		$	138,477		$	345,049		$	192,979