Pitney Bowes 2009 Annual Report Download - page 95

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
77
18. Business Segment Information
We conduct our business activities in seven reporting segments within two business groups, Mailstream Solutions and Mailstream
Services. The principal products and services of each of our reporting segments are as follows:
Mailstream Solutions:
U.S. Mailing: Includes the U.S. 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 non-U.S. 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.
Production Mail: Includes the worldwide revenue and related expenses from the sale, financing, support and other
professional services of our high-speed, production mail systems and sorting equipment.
Software: Includes the worldwide revenue and related expenses from the sale and support services of non-equipment-based
mailing, customer communication and location intelligence software.
Mailstream Services:
Management Services: Includes worldwide facilities management services; secure mail services; reprographic, document
management services; and litigation support and eDiscovery services.
Mail Services: Includes presort mail services and cross-border mail services.
Marketing Services: Includes direct marketing services for targeted customers.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
EBIT, a non-GAAP measure, is useful to management in demonstrating the operational profitability of the segments by excluding
interest and taxes, which are generally managed across the entire company on a consolidated basis. EBIT is determined by deducting
from revenue the related costs and expenses attributable to the segment. Segment EBIT also excludes general corporate expenses,
restructuring charges and asset impairments. Identifiable assets are those used in our operations and exclude cash and cash
equivalents, short-term investments and general corporate assets. Long-lived assets exclude finance receivables and investment in
leveraged leases.
As a result of certain organizational changes made during 2009, we have reclassified certain prior year amounts to conform to the
current year presentation. The amounts reclassified did not have a material impact to our segment disclosures.