Pitney Bowes 2012 Annual Report Download - page 85

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
67
15. Leases
We lease office facilities, sales and service offices, equipment and other properties under operating lease agreements extending from
three to eight years. Certain leases require us to pay property taxes, insurance and routine maintenance and include renewal options and
escalation clauses. Rental expense was $100 million, $117 million and $118 million in 2012, 2011 and 2010, respectively. Future
minimum lease payments under non-cancelable operating leases at December 31, 2012 were as follows:
Years ending December 31,
2013 $ 90,936
2014 69,945
2015 49,835
2016 32,355
2017 18,647
Thereafter 22,360
Total minimum lease payments $ 284,078
16. 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 IMS business as
a discontinued operation.