Pitney Bowes 2015 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2015 Pitney Bowes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

22
Business Segments
The principal products and services of each of our reportable segments are as follows:
Small & Medium Business Solutions:
North America Mailing: Includes the revenue and related expenses from the sale, rental, financing and servicing of mailing equipment,
software and supplies for small and medium businesses to efficiently create physical and digital mail and evidence postage for the
sending of mail, flats and parcels in the U.S. and Canada.
International Mailing: Includes the revenue and related expenses from the sale, rental, financing and servicing of mailing equipment,
software and supplies for small and medium businesses to efficiently create physical and digital mail and evidence postage for the
sending of mail, flats and parcels in areas outside the U.S. and Canada.
Enterprise Business Solutions:
Production Mail: Includes the worldwide revenue and related expenses from the sale of production mail inserting and sortation
equipment, high-speed production print systems, supplies and related support services 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:
Software Solutions: Includes the worldwide revenue and related expenses from the sale of non-equipment-based mailing, customer
information engagement, location intelligence and customer engagement solutions and related support services.
Global Ecommerce: Includes the worldwide revenue and related expenses from cross-border ecommerce and shipping solutions.
We determine segment EBIT by deducting the related costs and expenses attributable to the segment from segment revenue. Segment
EBIT excludes interest, taxes, general corporate expenses, restructuring charges and other items, 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 a useful measure of our 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. See Note 2 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
Years Ended December 31, % change
2015 2014 2013 2015 2014
North America Mailing $ 1,435 $ 1,492 $ 1,555 (4)% (4)%
International Mailing 445 572 603 (22)% (5)%
Small & Medium Business Solutions 1,880 2,064 2,158 (9)% (4)%
Production Mail 421 462 512 (9)% (10)%
Presort Services 474 457 430 4% 6%
Enterprise Business Solutions 895 919 942 (3)% (2)%
Software Solutions 386 429 395 (10)% 9%
Global Ecommerce 362 282 170 29 % 66 %
Digital Commerce Solutions 748 711 565 5% 26 %
Other 55 128 126 (57)% 1%
Total $ 3,578 $ 3,822 $ 3,791 (6)% 1%