Pitney Bowes 2013 Annual Report Download - page 31

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20
Business Segments
During 2013, we changed our reporting segments in response to organizational changes made that realigned our business units to reflect
the clients served and solutions offered and how we manage, review, analyze and measure our operations. Historical segment results have
been recast to conform to our current presentation and to exclude discontinued operations. The principal products and services of each
of our reporting segments are as follows:
Small & Medium Business Solutions:
North America Mailing: Includes the revenue and related expenses from the sale, rental and financing of mailing equipment and
supplies for small and medium size 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 and financing of mailing equipment and
supplies for small and medium size businesses to efficiently create mail and evidence postage in areas 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, high-volume inserting and sortation equipment and production printer systems 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:
Digital Commerce Solutions: Includes the worldwide revenue and related expenses from (i) the sale and support services of non-
equipment-based mailing, customer engagement, geocoding and location intelligence software; (ii) our cross-border e-commerce
solutions; (iii) direct marketing services for targeted clients; and (iv) our digital mail delivery service offering.
Segment earnings before interest and taxes (EBIT) is determined 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 impairment
charges, 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 investors with an analysis of the company's 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. Refer to Note 17 to the Consolidated Financial Statements for
a reconciliation of segment EBIT to income from continuing operations before income taxes.
Revenue and EBIT by business segment are presented in the tables below.
Revenue
Year Ended December 31, % change
2013 2012 2011 2013 2012
North America Mailing $ 1,723 $ 1,819 $ 1,961 (5)% (7)%
International Mailing 608 608 659 —% (8)%
Small & Medium Business Solutions 2,331 2,427 2,620 (4)% (7)%
Production Mail 512 480 511 6% (6)%
Presort Services 430 430 397 —% 8%
Enterprise Business Solutions 942 910 908 3% —%
Digital Commerce Solutions 596 578 597 3% (3)%
Total $ 3,869 $ 3,915 $ 4,125 (1)% (5)%