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Separate Financial Information of Subsidiary Guarantors of Indebtedness
 3 Months Ended
Mar. 31, 2015
Guarantees [Abstract]  
Separate Financial Information of Subsidiary Guarantors of Indebtedness
Separate Financial Information of Subsidiary Guarantors of Indebtedness

On April 28, 2014, Quad/Graphics completed an offering of the Senior Unsecured Notes. Each of the Company's existing and future domestic subsidiaries that is a borrower or guarantees indebtedness under the Company's Senior Secured Credit Facility or that guarantees certain of the Company's other indebtedness or indebtedness of the Company's restricted subsidiaries (other than intercompany indebtedness) fully and unconditionally guarantee or, in the case of future subsidiaries, will guarantee, on a joint and several basis, the Senior Unsecured Notes (the "Guarantor Subsidiaries"). All of the current Guarantor Subsidiaries are 100% owned by the Company. Guarantor Subsidiaries will be automatically released from these guarantees upon the occurrence of certain events, including the following:

•
the designation of any of the Guarantor Subsidiaries as an unrestricted subsidiary;

•
the release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Senior Unsecured Notes by any of the Guarantor subsidiaries; or

•
the sale or disposition, including the sale of substantially all the assets, of any of the Guarantor Subsidiaries.

The following condensed consolidating financial information reflects the summarized financial information of Quad/Graphics, the Guarantor Subsidiaries on a combined basis and the Company's non-guarantor subsidiaries on a combined basis.

Condensed Consolidating Statement of Operations
For the Three Months Ended March 31, 2015

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Net sales
$
460.6

 
$
605.5

 
$
142.1

 
$
(100.2
)
 
$
1,108.0

 
 
 
 
 
 
 
 
 
 
Cost of sales
349.3

 
523.0

 
123.3

 
(100.2
)
 
895.4

Selling, general and administrative expenses
59.4

 
38.3

 
12.0

 
—

 
109.7

Depreciation and amortization
44.7

 
27.0

 
9.6

 
—

 
81.3

Restructuring, impairment and transaction-related charges
(8.0
)
 
13.1

 
5.0

 
—

 
10.1

Goodwill impairment
—

 
—

 
23.3

 
—

 
23.3

Total operating expenses
445.4

 
601.4

 
173.2

 
(100.2
)
 
1,119.8

Operating income (loss)
$
15.2

 
$
4.1

 
$
(31.1
)
 
$
—

 
$
(11.8
)
Interest expense (income)
21.3

 
(0.2
)
 
1.4

 
—

 
22.5

Earnings (loss) before income taxes and equity in earnings (loss) of consolidated and unconsolidated entities
(6.1
)
 
4.3

 
(32.5
)
 
—

 
(34.3
)
Income tax expense (benefit)
3.7

 
(3.1
)
 
(1.6
)
 
—

 
(1.0
)
Earnings (loss) before equity in earnings (loss) of consolidated and unconsolidated entities
(9.8
)
 
7.4

 
(30.9
)
 
—

 
(33.3
)
Equity in earnings (loss) of consolidated entities
(25.4
)
 
(8.9
)
 
—

 
34.3

 
—

Equity in earnings (loss) of unconsolidated entities
—

 
—

 
(1.9
)
 
—

 
(1.9
)
Net earnings (loss) attributable to Quad/Graphics common shareholders
$
(35.2
)
 
$
(1.5
)
 
$
(32.8
)
 
$
34.3

 
$
(35.2
)


Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 31, 2015

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Net earnings (loss)
$
(35.2
)
 
$
(1.5
)
 
$
(32.8
)
 
$
34.3

 
$
(35.2
)
Other comprehensive income (loss), net of tax
(24.9
)
 
(0.2
)
 
(25.3
)
 
25.5

 
(24.9
)
Comprehensive income (loss) attributable to Quad/Graphics common shareholders
$
(60.1
)
 
$
(1.7
)
 
$
(58.1
)
 
$
59.8

 
$
(60.1
)


Condensed Consolidating Statement of Operations
For the Three Months Ended March 31, 2014

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Net sales
$
432.5

 
$
646.4

 
$
116.6

 
$
(92.7
)
 
$
1,102.8

 
 
 
 
 
 
 
 
 
 
Cost of sales
339.5

 
545.2

 
100.6

 
(92.7
)
 
892.6

Selling, general and administrative expenses
49.5

 
49.1

 
4.9

 
—

 
103.5

Depreciation and amortization
32.7

 
44.1

 
7.0

 
—

 
83.8

Restructuring, impairment and transaction-related charges
3.0

 
8.1

 
0.8

 
—

 
11.9

Total operating expenses
424.7

 
646.5

 
113.3

 
(92.7
)
 
1,091.8

Operating income (loss)
$
7.8

 
$
(0.1
)
 
$
3.3

 
$
—

 
$
11.0

Interest expense (income)
18.8

 
(0.3
)
 
2.4

 
—

 
20.9

Earnings (loss) before income taxes and equity in earnings (loss) of consolidated and unconsolidated entities
(11.0
)
 
0.2

 
0.9

 
—

 
(9.9
)
Income tax expense (benefit)
(0.6
)
 
(3.1
)
 
2.5

 
—

 
(1.2
)
Earnings (loss) before equity in earnings (loss) of consolidated and unconsolidated entities
(10.4
)
 
3.3

 
(1.6
)
 
—

 
(8.7
)
Equity in earnings (loss) of consolidated entities
1.6

 
3.4

 
—

 
(5.0
)
 
—

Equity in earnings (loss) of unconsolidated entities
—

 
—

 
(0.4
)
 
—

 
(0.4
)
Net earnings (loss)
$
(8.8
)
 
$
6.7

 
$
(2.0
)
 
$
(5.0
)
 
$
(9.1
)
Net (earnings) loss attributable to noncontrolling interests
—

 
—

 
0.3

 
—

 
0.3

Net earnings (loss) attributable to Quad/Graphics common shareholders
$
(8.8
)
 
$
6.7

 
$
(1.7
)
 
$
(5.0
)
 
$
(8.8
)


Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 31, 2014

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Net earnings (loss)
$
(8.8
)
 
$
6.7

 
$
(2.0
)
 
$
(5.0
)
 
$
(9.1
)
Other comprehensive income (loss), net of tax
(1.7
)
 
0.1

 
(2.4
)
 
2.3

 
(1.7
)
Total comprehensive income (loss)
(10.5
)
 
6.8

 
(4.4
)
 
(2.7
)
 
(10.8
)
Less: comprehensive (income) loss attributable to noncontrolling interest
—

 
—

 
0.3

 
—

 
0.3

Comprehensive income (loss) attributable to Quad/Graphics common shareholders
$
(10.5
)
 
$
6.8

 
$
(4.1
)
 
$
(2.7
)
 
$
(10.5
)







Condensed Consolidating Balance Sheet
As of March 31, 2015

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
6.2

 
$
8.9

 
$
9.4

 
$
—

 
$
24.5

Receivables, less allowances for doubtful accounts
479.0

 
48.5

 
101.3

 
—

 
628.8

Intercompany receivables
—

 
796.8

 
—

 
(796.8
)
 
—

Inventories
97.9

 
131.8

 
61.3

 
—

 
291.0

Other current assets
52.7

 
58.6

 
20.4

 
—

 
131.7

Total current assets
635.8

 
1,044.6

 
192.4

 
(796.8
)
 
1,076.0

 
 
 
 
 
 
 
 
 
 
Property, plant and equipment—net
904.9

 
674.4

 
239.3

 
—

 
1,818.6

Investment in consolidated entities
1,787.1

 
37.4

 
—

 
(1,824.5
)
 
—

Goodwill and intangible assets—net
91.1

 
779.9

 
26.9

 
—

 
897.9

Intercompany loan receivable
482.0

 
0.1

 
—

 
(482.1
)
 
—

Other long-term assets
48.0

 
5.9

 
67.0

 
—

 
120.9

Total assets
$
3,948.9

 
$
2,542.3

 
$
525.6

 
$
(3,103.4
)
 
$
3,913.4

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Accounts payable
$
202.2

 
$
66.1

 
$
64.5

 
$
—

 
$
332.8

Intercompany accounts payable
787.4

 
—

 
9.4

 
(796.8
)
 
—

Current portion of long-term debt and capital lease obligations
95.3

 
3.2

 
1.7

 
—

 
100.2

Other current liabilities
182.8

 
97.1

 
44.1

 
—

 
324.0

Total current liabilities
1,267.7

 
166.4

 
119.7

 
(796.8
)
 
757.0

 
 
 
 
 
 
 
 
 
 
Long-term debt and capital lease obligations
1,345.6

 
8.9

 
1.7

 
—

 
1,356.2

Intercompany loan payable
—

 
374.3

 
107.8

 
(482.1
)
 
—

Other long-term liabilities
255.0

 
451.8

 
12.8

 
—

 
719.6

Total liabilities
2,868.3

 
1,001.4

 
242.0

 
(1,278.9
)
 
2,832.8

 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
1,080.6

 
1,540.9

 
283.6

 
(1,824.5
)
 
1,080.6

 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
3,948.9

 
$
2,542.3

 
$
525.6

 
$
(3,103.4
)
 
$
3,913.4



Condensed Consolidating Balance Sheet
As of December 31, 2014

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.9

 
$
5.6

 
$
2.1

 
$
—

 
$
9.6

Receivables, less allowances for doubtful accounts
577.5

 
57.7

 
131.0

 
—

 
766.2

Intercompany receivables
—

 
826.3

 
3.9

 
(830.2
)
 
—

Inventories
111.9

 
119.7

 
56.2

 
—

 
287.8

Other current assets
56.8

 
49.9

 
12.0

 
—

 
118.7

Total current assets
748.1

 
1,059.2

 
205.2

 
(830.2
)
 
1,182.3

 
 
 
 
 
 
 
 
 
 
Property, plant and equipment—net
959.5

 
635.7

 
260.3

 
—

 
1,855.5

Investment in consolidated entities
1,940.0

 
137.8

 
—

 
(2,077.8
)
 
—

Goodwill and intangible assets—net
0.6

 
888.0

 
36.0

 
—

 
924.6

Intercompany loan receivable
418.5

 
0.1

 
—

 
(418.6
)
 
—

Other long-term assets
48.1

 
6.1

 
60.6

 
—

 
114.8

Total assets
$
4,114.8

 
$
2,726.9

 
$
562.1

 
$
(3,326.6
)
 
$
4,077.2

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Accounts payable
$
251.1

 
$
79.5

 
$
76.3

 
$
—

 
$
406.9

Intercompany accounts payable
830.2

 
—

 
—

 
(830.2
)
 
—

Current portion of long-term debt and capital lease obligations
90.7

 
3.6

 
1.9

 
—

 
96.2

Other current liabilities
205.1

 
102.9

 
51.5

 
—

 
359.5

Total current liabilities
1,377.1

 
186.0

 
129.7

 
(830.2
)
 
862.6

 
 
 
 
 
 
 
 
 
 
Long-term debt and capital lease obligations
1,318.4

 
9.4

 
1.6

 
—

 
1,329.4

Intercompany loan payable
—

 
336.2

 
82.4

 
(418.6
)
 
—

Other long-term liabilities
266.7

 
455.4

 
10.6

 
—

 
732.7

Total liabilities
2,962.2

 
987.0

 
224.3

 
(1,248.8
)
 
2,924.7

 
 
 
 
 
 
 
 
 

Total shareholders' equity
1,152.6

 
1,739.9

 
337.8

 
(2,077.8
)
 
1,152.5

 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
4,114.8

 
$
2,726.9

 
$
562.1

 
$
(3,326.6
)
 
$
4,077.2





Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 2015

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net cash from operating activities
$
72.8

 
$
2.6

 
$
(11.2
)
 
$
—

 
$
64.2

 
 
 
 
 
 
 
 
 
 
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(13.2
)
 
(25.2
)
 
(3.9
)
 
—

 
(42.3
)
Acquisition related investing activities—net of cash acquired
—

 
(0.5
)
 
(19.0
)
 
—

 
(19.5
)
Intercompany investing activities
(26.4
)
 
(14.5
)
 
(0.1
)
 
41.0

 
—

Other investing activities
(1.1
)
 
—

 
—

 
—

 
(1.1
)
Net cash from investing activities
(40.7
)
 
(40.2
)
 
(23.0
)
 
41.0

 
(62.9
)
 
 
 
 
 
 
 
 
 
 
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Payments of long-term debt and capital lease obligations
(10.0
)
 
(0.9
)
 
—

 
—

 
(10.9
)
Borrowings on revolving credit facilities
375.0

 
—

 
13.3

 
—

 
388.3

Payments on revolving credit facilities
(335.0
)
 
—

 
(13.6
)
 
—

 
(348.6
)
Payment of cash dividends
(15.8
)
 
—

 
—

 
—

 
(15.8
)
Intercompany financing activities
(42.9
)
 
41.7

 
42.2

 
(41.0
)
 
—

Other financing activities
0.9

 
—

 
—

 
—

 
0.9

Net cash from financing activities
(27.8
)
 
40.8

 
41.9

 
(41.0
)
 
13.9

 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and cash equivalents
—

 
0.1

 
(0.4
)
 
—

 
(0.3
)
Net increase (decrease) in cash and cash equivalents
4.3

 
3.3

 
7.3

 
—

 
14.9

Cash and cash equivalents at beginning of period
1.9

 
5.6

 
2.1

 
—

 
9.6

Cash and cash equivalents at end of period
$
6.2

 
$
8.9

 
$
9.4

 
$
—

 
$
24.5


Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 2014

 
Quad/Graphics,
Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net cash from operating activities
$
41.9

 
$
10.3

 
$
(19.2
)
 
$
—

 
$
33.0

 
 
 
 
 
 
 
 
 
 
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(12.9
)
 
(19.9
)
 
(13.0
)
 
—

 
(45.8
)
Acquisition related investing activities—net of cash acquired
—

 
(8.9
)
 
—

 
—

 
(8.9
)
Intercompany investing activities
(25.0
)
 
1.7

 
—

 
23.3

 
—

Other investing activities
(0.4
)
 
(3.4
)
 
—

 
—

 
(3.8
)
Net cash from investing activities
(38.3
)
 
(30.5
)
 
(13.0
)
 
23.3

 
(58.5
)
 
 
 
 
 
 
 
 
 
 
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Payments of long-term debt and capital lease obligations
(15.5
)
 
(1.3
)
 
(1.3
)
 
—

 
(18.1
)
Borrowings on revolving credit facilities
385.0

 
—

 
34.6

 
—

 
419.6

Payments on revolving credit facilities
(333.8
)
 
—

 
(29.0
)
 
—

 
(362.8
)
Payment of cash dividends
(14.7
)
 
—

 
—

 
—

 
(14.7
)
Intercompany financing activities
(29.0
)
 
23.9

 
28.4

 
(23.3
)
 
—

Other financing activities
(0.2
)
 
(0.1
)
 
—

 
—

 
(0.3
)
Net cash from financing activities
(8.2
)
 
22.5

 
32.7

 
(23.3
)
 
23.7

 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and cash equivalents
—

 
0.1

 
1.7

 
—

 
1.8

Net increase (decrease) in cash and cash equivalents
(4.6
)
 
2.4

 
2.2

 
—

 
—

Cash and cash equivalents at beginning of period
4.8

 
3.5

 
4.8

 
—

 
13.1

Cash and cash equivalents at end of period
$
0.2

 
$
5.9

 
$
7.0

 
$
—

 
$
13.1