Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregated Revenue

The following tables disaggregate our revenue by source and timing of recognition:

	Three Months Ended September 30, 2022
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	354,326	$	144,824	$	19,255	$	518,405	$	—	$	518,405
Support services	—		—		107,642		107,642		—		107,642
Financing	—		—		—		—		67,757		67,757
Equipment sales	—		—		20,389		20,389		63,139		83,528
Supplies	—		—		37,455		37,455		—		37,455
Rentals	—		—		—		—		16,127		16,127
Subtotal	354,326		144,824		184,741		683,891		$	147,023	$	830,914
Revenue from leasing transactions and financing	—		—		147,023		147,023
Total revenue	$	354,326	$	144,824	$	331,764	$	830,914
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	76,667	$	76,667
Products/services transferred over time	354,326		144,824		108,074		607,224
Total	$	354,326	$	144,824	$	184,741	$	683,891

	Three Months Ended September 30, 2021
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	398,011	$	139,296	$	14,077	$	551,384	$	—	$	551,384
Support services	—		—		113,413		113,413		—		113,413
Financing	—		—		—		—		71,936		71,936
Equipment sales	—		—		25,089		25,089		58,145		83,234
Supplies	—		—		38,211		38,211		—		38,211
Rentals	—		—		—		—		17,271		17,271
Subtotal	398,011		139,296		190,790		728,097		$	147,352	$	875,449
Revenue from leasing transactions and financing	—		—		147,352		147,352
Total revenue	$	398,011	$	139,296	$	338,142	$	875,449
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	81,205	$	81,205
Products/services transferred over time	398,011		139,296		109,585		646,892
Total	$	398,011	$	139,296	$	190,790	$	728,097

	Nine Months Ended September 30, 2022
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	1,166,623	$	444,302	$	56,342	$	1,667,267	$	—	$	1,667,267
Support services	—		—		325,619		325,619		—		325,619
Financing	—		—		—		—		207,084		207,084
Equipment sales	—		—		63,088		63,088		199,722		262,810
Supplies	—		—		116,761		116,761		—		116,761
Rentals	—		—		—		—		49,810		49,810
Subtotal	1,166,623		444,302		561,810		2,172,735		$	456,616	$	2,629,351
Revenue from leasing transactions and financing	—		—		456,616		456,616
Total revenue	$	1,166,623	$	444,302	$	1,018,426	$	2,629,351
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	231,194	$	231,194
Products/services transferred over time	1,166,623		444,302		330,616		1,941,541
Total	$	1,166,623	$	444,302	$	561,810	$	2,172,735

	Nine Months Ended September 30, 2021
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	1,229,526	$	417,041	$	42,293	$	1,688,860	$	—	$	1,688,860
Support services	—		—		347,266		347,266		—		347,266
Financing	—		—		—		—		223,201		223,201
Equipment sales	—		—		66,600		66,600		189,704		256,304
Supplies	—		—		119,090		119,090		—		119,090
Rentals	—		—		—		—		55,128		55,128
Subtotal	1,229,526		417,041		575,249		2,221,816		$	468,033	$	2,689,849
Revenue from leasing transactions and financing	—		—		468,033		468,033
Total revenue	$	1,229,526	$	417,041	$	1,043,282	$	2,689,849
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	236,016	$	236,016
Products/services transferred over time	1,229,526		417,041		339,233		1,985,800
Total	$	1,229,526	$	417,041	$	575,249	$	2,221,816

Our performance obligations for revenue from products and services are as follows:

Business services includes fulfillment, delivery and return services, cross-border solutions, mail processing services and shipping subscription solutions. Revenue for fulfillment, delivery and return services and cross-border solutions and mail processing services is recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Contract terms for these services initially range from one to five years and contain annual renewal options. Revenue for shipping subscription solutions revenue is recognized ratably over the contract period as the client obtains equal benefit from these services through the period.

Support services includes providing maintenance, professional and subscription services for our equipment and digital mailing and shipping technology solutions. Contract terms range from one to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance and subscription services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

Equipment sales generally includes the sale of mailing and shipping equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment and upon acceptance or installation for other equipment. We provide a warranty that the equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

Supplies includes revenue from supplies for our mailing equipment and is recognized upon delivery.

Revenue from leasing transactions and financing includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at the Bank.

Advance Billings from Contracts with Customers

	Balance sheet location	September 30, 2022		December 31, 2021		Increase/ (decrease)
Advance billings, current	Advance billings	$	86,648	$	92,926	$	(6,278)
Advance billings, noncurrent	Other noncurrent liabilities	$	931	$	1,109	$	(178)

Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to support services on mailing equipment. Revenue recognized during the period includes $89 million of advance billings at the beginning of the period. Advance billings, current, reported on the Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021 also includes $7 million and $6 million, respectively, from leasing transactions.

Future Performance Obligations

Future performance obligations include revenue streams bundled with our leasing contracts, primarily maintenance and subscription services. The transaction prices allocated to future performance obligations will be recognized as follows:

	Remainder of 2022		2023		2024-2027		Total
SendTech Solutions	$	75,374	$	241,706	$	359,275	$	676,355

The amounts above do not include revenue for performance obligations under contracts with terms less than 12 months or revenue for performance obligations where revenue is recognized based on the amount billable to the customer.