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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
73
17. Segment Information
During the year, we sold certain businesses and realigned our segment reporting to reflect the clients we serve, the solutions we offer,
and how we manage, review, analyze and measure our operations (See Note 1). Our historical results have been recast to present the
operating results of divested businesses as discontinued operations and our segment results have been recast to conform to our new
segment reporting. 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 sorting and production print equipment and production mail 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, client relationship and communication and location intelligence software; (ii) direct marketing services
for targeted clients; (iii) our cross-border e-commerce solutions; and (iv) our digital mail delivery service offering.
Revenue and segment earnings before interest and taxes (EBIT) for our reportable segments for the years ended December 31, 2013,
2012 and 2011 are presented in the tables below. Segment 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 not allocated to a particular
business segment, restructuring charges and impairment charges, which are recognized on a consolidated basis. 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.
Revenues
Years Ended December 31,
2013 2012 2011
North America Mailing $ 1,723,304 $ 1,818,952 $ 1,961,198
International Mailing 608,156 607,644 659,052
Small & Medium Business Solutions 2,331,460 2,426,596 2,620,250
Production Mail 511,544 480,718 511,595
Presort Services 430,469 429,804 396,853
Enterprise Business Solutions 942,013 910,522 908,448
Digital Commerce Solutions 595,928 577,946 596,643
Total revenue $ 3,869,401 $ 3,915,064 $ 4,125,341