Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2017, we revised our segment reporting to reflect a change in how we manage and report office shipping solutions, which were previously reported within the Global Ecommerce segment. The needs of retail and ecommerce clients are different from those of office shipping clients. Accordingly, the results for office shipping solutions are now reported within Small & Medium Business Solutions and the retail and ecommerce shipping solutions remain in Global Ecommerce. Prior period results have been recast to conform to our current segment presentation. 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 mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats in the U.S. and Canada.

International Mailing: Includes the revenue and related expenses from mailing and office shipping solutions, financing services, and supplies for small and medium businesses to efficiently create physical and digital mail, evidence postage and help simplify and save on the sending, tracking and receiving of letters, parcels and flats 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 and parcel 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 licensing of customer engagement, customer information and location intelligence software solutions and related support services.

Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce transactions and domestic retail and ecommerce shipping solutions.

We determine segment earnings before interest and taxes (EBIT) by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. Management uses segment EBIT to measure profitability and performance at the segment level and believes that it provides a useful measure of 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 March 31,
	2017		2016
North America Mailing	$	355,578	$	371,453
International Mailing	93,058		104,986
Small & Medium Business Solutions	448,636		476,439
Production Mail	88,955		87,425
Presort Services	132,677		127,396
Enterprise Business Solutions	221,632		214,821
Software Solutions	78,220		77,922
Global Ecommerce	88,152		75,407
Digital Commerce Solutions	166,372		153,329
Total revenue	$	836,640	$	844,589

	EBIT
	Three Months Ended March 31,
	2017			2016
North America Mailing	$	141,008		$	160,831
International Mailing	13,269			11,176
Small & Medium Business Solutions	154,277			172,007
Production Mail	8,964			6,824
Presort Services	30,717			28,910
Enterprise Business Solutions	39,681			35,734
Software Solutions	2,749			(2,572		)
Global Ecommerce	(4,270		)	(3,469		)
Digital Commerce Solutions	(1,521		)	(6,041		)
Total segment EBIT	192,437			201,700
Reconciling items:
Interest, net	(38,650		)	(34,216		)
Unallocated corporate expenses	(55,156		)	(57,767		)
Restructuring charges and asset impairments, net	(2,082		)	(6,933		)
Acquisition and disposition-related expenses	—			(3,120		)
Income before income taxes	96,549			99,664
Provision for income taxes	31,416			37,024
Net income	$	65,133		$	62,640