Equity Method Investments in Unconsolidated Entities

12 Months Ended

Dec. 31, 2014

Equity Method Investments in Unconsolidated Entities [Abstract]

Equity Method Investments in Unconsolidated Entities

Equity Method Investments in Unconsolidated Entities

The Company has a 49% ownership interest in Plural Editora e Gráfica ("Plural"), a commercial printer based in São Paulo, Brazil, and a 50% ownership interest in Quad/Graphics Chile S.A. ("Chile"), a commercial printer based in Santiago, Chile. The Company's ownership interest in Plural and Chile is accounted for using the equity method of accounting for all periods presented.

On January 1, 2013, the Company sold 100% of its ownership interest in two wholly-owned Brazilian entities (Quad/Graphics Nordeste Industria Gráfica LTDA. and Quad/Graphics São Paulo Industria Gráfica S.A.) to Plural for a purchase price of $5.5 million (recorded in receivables in the Company's consolidated balance sheet as of December 31, 2013). Quad/Graphics retained ownership of the land and building, which are leased to Plural. During the year ended December 31, 2013, the Company recorded a $2.8 million gain on the sale within selling, general and administrative expenses in the Company's consolidated statements of operations. As a result of the sale to Plural, the Company no longer controls these entities (the Company now owns 49% of these entities through its ownership interest in Plural), and thus the assets and liabilities of the entities sold have been deconsolidated in accordance with GAAP. Since the sale to Plural, the Company's ownership interest in the results of operations of these entities are included in equity in earnings (loss) of unconsolidated entities in the consolidated statements of operations.

The Company's equity earnings of Plural's and Chile's operations are recorded in the line item entitled equity in earnings (loss) of unconsolidated entities in the Company's consolidated statements of operations, and is included within the International segment.

The combined condensed balance sheets for Plural and Chile at December 31, 2014 and 2013 are presented below:

	2014		2013
Current assets	$	77.9	$	94.9
Long-term assets	71.1		92.9
Total assets	$	149.0	$	187.8
Current liabilities	$	64.4	$	75.0
Long-term liabilities	10.9		18.1
Total liabilities	$	75.3	$	93.1

The combined condensed statements of operations for Plural and Chile for the years ended December 31, 2014, 2013 and 2012 are presented below:

	2014			2013			2012
Net sales	$	195.8		$	221.2		$	200.8
Operating income (loss)	(3.6		)	(0.7		)	9.0
Net earnings (loss)	(5.2		)	(3.9		)	4.2