Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

12. Segment Information

The Company operates primarily in the printing industry, with related product and service offerings designed to offer customers complete solutions for communicating their messages to target audiences. The Company’s reportable segments reflect the management reporting structure of the organization and the manner in which the chief operating decision-maker regularly assesses information for decision-making purposes, including the allocation of resources. The Company’s segments and their product and service offerings are summarized below:

U.S. Print and Related Services

The U.S. Print and Related Services segment includes the Company’s U.S. printing operations, managed as one integrated platform, along with logistics, premedia, print management and other print related services. This segment’s product and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, office products, packaging, statement printing, premedia and logistics services.

International

The International segment includes the Company’s non-U.S. printing operations in Asia, Europe, Latin America and Canada. This segment’s product and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, packaging, manuals, statement printing, premedia and logistics services. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management services through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia.

Corporate

Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans are included in Corporate and not allocated to operating segments. Corporate manages the Company’s cash pooling structure, which enables participating international locations to draw on the Company’s overseas cash resources to meet local liquidity needs.

The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements.

							Income (Loss)							Depreciation
Three months ended	Total		Intersegment		Net			from			Assets of				and		Capital
March 31, 2013	Sales		Sales		Sales			Operations			Operations				Amortization		Expenditures
U.S. Print and Related Services	$	1,880.4	$	(7.9)	$	1,872.5			$	145.0		$	4,542.3		$	75.0	$	21.2
International		689.6		(23.6)		666.0				32.1			1,951.8			26.4		11.3
Total operating segments		2,570.0		(31.5)		2,538.5				177.1			6,494.1			101.4		32.5
Corporate		-		-		-				(37.3)			512.7			12.2		5.4
Total operations	$	2,570.0	$	(31.5)	$	2,538.5			$	139.8		$	7,006.8		$	113.6	$	37.9

								Income (Loss)						Depreciation
Three months ended	Total		Intersegment		Net		from			Assets of			and			Capital
March 31, 2012	Sales		Sales		Sales		Operations			Operations			Amortization			Expenditures
U.S. Print and Related Services	$	1,890.7	$	(9.3)	$	1,881.4		$	139.2		$	5,646.6	$		87.6	$	27.1
International		664.0		(20.5)		643.5			30.6			2,318.9			27.5		11.1
Total operating segments		2,554.7		(29.8)		2,524.9			169.8			7,965.5			115.1		38.2
Corporate		-		-		-			(48.4)			247.3			9.9		7.1
Total operations	$	2,554.7	$	(29.8)	$	2,524.9		$	121.4		$	8,212.8	$		125.0	$	45.3

Restructuring and impairment charges by segment for the three months ended March31, 2013 and 2012 are described in Note 6.