BUSINESS SEGMENT REPORTING
The Company revised its business segment reporting in the second quarter 2015 for its Digital Commerce Solutions segment. The Company’s business segment reporting reflects the clients served in each market and the way it manages these segments for growth and profitability. The primary reporting segment groups are the SMB Solutions group; the Enterprise Business Solutions group; and the Digital Commerce Solutions group.
The SMB Solutions group offers mailing equipment, financing, services and supplies for small and medium businesses to efficiently create mail and evidence postage. This group includes the North America Mailing and International Mailing segments. North America Mailing includes the operations of U.S. and Canada Mailing. International Mailing includes all other SMB operations around the world.
The Enterprise Business Solutions group provides mailing and printing equipment and services for large enterprise clients to process mail, including sortation services to qualify large mail volumes for postal worksharing discounts. This group includes the global Production Mail and Presort Services segments.
The Digital Commerce Solutions group provides customer engagement, customer information and location intelligence software; and solutions that facilitate global cross-border ecommerce transactions and shipping solutions for businesses of all sizes. This group includes the Software Solutions and Global Ecommerce segments.
The Other segment is comprised of the Imagitas marketing services business, which was sold on May 29, 2015.
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SMB Solutions Group |
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| ($ millions) | Third Quarter | ||||||||||||||||
| Revenue |
2015 |
2014 |
Y/Y Reported |
Y/Y Ex Currency |
Y/Y Ex Currency and Divested Revenues* |
||||||||||||
| North America Mailing | $353 | $363 | (3%) | (2%) | (2%) | ||||||||||||
| International Mailing | 105 | 132 | (21%) | (9%) | (7%) | ||||||||||||
| SMB Solutions Total | $458 | $496 | (8%) | (3%) | (3%) | ||||||||||||
| EBIT | |||||||||||||||||
| North America Mailing | $159 | $160 | 0% | ||||||||||||||
| International Mailing | 11 | 16 | (33%) | ||||||||||||||
| SMB Solutions Total | $170 | $176 | (3%) | ||||||||||||||
* Excludes the impacts of currency and the divested revenues in Europe related to the transition to a dealer sales network in six smaller European markets completed in the third quarter of 2014.
North America Mailing
North America Mailing revenue experienced the lowest rate of decline in 6 quarters, benefiting from 2 percent growth in equipment sales as productivity continues to improve. Recurring revenue stream trends also continued to be in-line with prior quarters. EBIT margin continued to improve versus the prior year due to the mix of business, organizational streamlining and on-going cost reduction initiatives.
