10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2011

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-4694

R.R. DONNELLEY & SONS COMPANY

(Exact name of registrant as specified in its charter)

Delaware	36-1004130
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
111 South Wacker Drive, Chicago, Illinois	60606
(Address of principal executive offices)	(Zip code)

(312) 326-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	x	Accelerated Filer	¨
Non-Accelerated Filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 29, 2011, 187.8 million shares of common stock were outstanding.

R.R. DONNELLEY & SONS COMPANY

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2011

TABLE OF CONTENTS

	Page
PART I
FINANCIAL INFORMATION		3
Item 1: Condensed Consolidated Financial Statements (unaudited)		3
Condensed Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010		3
Condensed Consolidated Statements of Operations for the three and six months ended June  30, 2011 and 2010		4
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2011 and 2010		5
Notes to Condensed Consolidated Financial Statements		6
Item  2: Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3: Quantitative and Qualitative Disclosures About Market Risk		49
Item 4: Controls and Procedures		49
PART II
OTHER INFORMATION		50
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds		50
Item 6: Exhibits		50
Signatures		55

2

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

(UNAUDITED)

	June 30, 2011			December 31, 2010
ASSETS
Cash and cash equivalents	$	363.0		$	519.1
Receivables, less allowance for doubtful accounts of $64.9 in 2011 (2010—$71.0)		2,011.0			1,922.9
Income taxes receivable		68.0			49.3
Inventories (Note 3)		580.0			560.6
Prepaid expenses and other current assets		145.7			115.4
Total current assets		3,167.7			3,167.3
Property, plant and equipment—net (Note 4)		2,031.5			2,138.7
Goodwill (Note 5)		2,619.5			2,526.8
Other intangible assets—net (Note 5)		727.3			775.0
Other noncurrent assets		480.2			475.4
Total assets	$	9,026.2		$	9,083.2
LIABILITIES
Accounts payable	$	924.7		$	939.8
Accrued liabilities		815.8			902.2
Short-term and current portion of long-term debt (Note 14)		649.6			131.4
Total current liabilities		2,390.1			1,973.4
Long-term debt (Note 14)		3,427.7			3,398.6
Pension liability		530.0			533.0
Postretirement benefits		220.9			287.4
Deferred income taxes		190.7			174.5
Other noncurrent liabilities		460.1			470.9
Total liabilities		7,219.5			6,837.8
Commitments and contingencies (Note 13)
EQUITY (Note 9)
RR Donnelley shareholders’ equity
Preferred stock, $1.00 par value
Authorized: 2.0 shares; Issued: None		—			—
Common stock, $1.25 par value
Authorized: 500.0 shares;
Issued: 243.0 shares in 2011 and 2010		303.7			303.7
Additional paid-in capital		2,779.6			2,907.0
Retained earnings		608.7			670.2
Accumulated other comprehensive loss		(375.7	)		(490.4	)
Treasury stock, at cost, 55.2 shares in 2011 (2010—36.4 shares)		(1,528.9	)		(1,166.2	)
Total RR Donnelley shareholders’ equity		1,787.4			2,224.3
Noncontrolling interests		19.3			21.1
Total equity		1,806.7			2,245.4
Total liabilities and equity	$	9,026.2		$	9,083.2

(See Notes to Condensed Consolidated Financial Statements)

3

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net sales
Products	$	2,356.9		$	2,157.4		$	4,623.3		$	4,328.3
Services		266.5			251.2			583.6			495.4
Total net sales	$	2,623.4		$	2,408.6		$	5,206.9		$	4,823.7
Products cost of sales (exclusive of depreciation and amortization shown below)		1,777.2			1,636.1			3,504.0			3,296.9
Services cost of sales (exclusive of depreciation and amortization shown below)		204.4			183.5			433.8			364.4
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below)		309.3			268.2			636.2			541.7
Restructuring and impairment charges—net (Note 6)		75.7			10.7			126.5			26.2
Depreciation and amortization		140.7			134.8			280.9			273.4
Total operating expenses		2,507.3			2,233.3			4,981.4			4,502.6
Income from operations		116.1			175.3			225.5			321.1
Interest expense—net		61.3			52.8			119.2			108.5
Investment and other income (expense)—net		10.0			(0.8	)		9.8			(9.8	)
Loss on debt extinguishment		(68.6	)		—			(68.6	)		—
Earnings (loss) before income taxes		(3.8	)		121.7			47.5			202.8
Income tax expense (benefit)		(16.3	)		32.2			0.7			64.6
Net earnings		12.5			89.5			46.8			138.2
Less: Income (loss) attributable to noncontrolling interests		0.3			0.7			0.7			(3.2	)
Net earnings attributable to RR Donnelley common shareholders	$	12.2		$	88.8		$	46.1		$	141.4
Earnings per share attributable to RR Donnelley common shareholders (Note 10):
Basic net earnings per share	$	0.06		$	0.43		$	0.23		$	0.69
Diluted net earnings per share	$	0.06		$	0.42		$	0.23		$	0.68
Dividends declared per common share	$	0.26		$	0.26		$	0.52		$	0.52
Weighted average number of common shares outstanding (Note 10):
Basic		196.7			206.3			201.9			206.0
Diluted		199.5			209.9			204.5			209.4

(See Notes to Condensed Consolidated Financial Statements)

4

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(UNAUDITED)

	Six Months Ended June 30,
	2011			2010
OPERATING ACTIVITIES
Net earnings	$	46.8		$	138.2
Adjustments to reconcile net earnings to cash provided by operating activities:
Impairment charges		32.4			2.5
Depreciation and amortization		280.9			273.4
Provision for doubtful accounts receivable		7.5			4.7
Share-based compensation		16.4			16.0
Deferred taxes		(28.6	)		(38.6	)
Change in uncertain tax positions		(6.1	)		—
Gain on sale of investments and other assets - net		(12.8	)		(0.6	)
Loss related to Venezuela currency devaluation		—			8.9
Loss on debt extinguishment		68.6			—
Other		15.1			19.3
Changes in operating assets and liabilities—net of acquisitions:
Accounts receivable—net		(75.3	)		(56.2	)
Inventories		(13.2	)		13.9
Prepaid expenses and other current assets		(14.8	)		(5.6	)
Accounts payable		(30.4	)		(34.2	)
Income taxes payable and receivable		(22.8	)		20.9
Accrued liabilities and other		(95.6	)		(93.5	)
Net cash provided by operating activities		168.1			269.1
INVESTING ACTIVITIES
Capital expenditures		(128.2	)		(94.5	)
Acquisition of businesses, net of cash acquired		(75.4	)		1.8
Proceeds from return of capital and sale of investments and other assets		2.1			14.3
Purchases of investments		(7.0	)		(23.7	)
Transfers from restricted cash		0.1			0.1
Net cash used in investing activities		(208.4	)		(102.0	)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		600.0			400.0
Net change in short-term debt		4.6			(4.0	)
Payments of current maturities and long-term debt		(481.6	)		(326.6	)
Net proceeds from credit facility borrowings		355.0			—
Debt issuance costs		(9.6	)		(2.6	)
Issuance of common stock		7.1			6.6
Payments for the acquisition of common stock		(500.0	)		—
Dividends paid		(107.7	)		(107.1	)
Distributions to noncontrolling interests		(2.2	)		(1.6	)
Net cash used in financing activities		(134.4	)		(35.3	)
Effect of exchange rate on cash and cash equivalents		18.6			(15.2	)
Net (decrease) increase in cash and cash equivalents		(156.1	)		116.6
Cash and cash equivalents at beginning of period		519.1			499.2
Cash and cash equivalents at end of period	$	363.0		$	615.8

(See Notes to Condensed Consolidated Financial Statements)

5

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

1. Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley & Sons Company and its subsidiaries (the “Company” or “RR Donnelley”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on February 22, 2011. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011. All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates.

2. Acquisitions

2011 Acquisitions

On June 21, 2011, the Company acquired Helium, Inc. (“Helium”), an online community offering publishers, catalogers and other customers stock and custom content, as well as a comprehensive range of editorial solutions. As the Company previously held a 23.7% equity investment in Helium, the purchase price for the remaining equity of Helium was $57.0 million net of cash acquired of $0.1 million and included an amount due from Helium of $1.1 million. The fair value of the Company’s previously held equity investment was $12.8 million, resulting in the recognition of a $10.0 million gain, which is reflected in investment and other income (expense) in the Condensed Consolidated Statements of Operations. The fair value of the previously held equity investment was determined based on the purchase price paid for the remaining equity less an estimated control premium and was determined to be Level 3 under the fair value hierarchy. Other than this gain, the Company’s Condensed Consolidated Statements of Operations were not impacted by this acquisition for the three and six months ended June 30, 2011. Helium’s operations are included in the U.S. Print and Related Services segment.

On March 24, 2011, the Company acquired Journalism Online, LLC (“Journalism Online”), an online provider of tools that allow consumers to purchase online subscriptions from publishers. The purchase price for Journalism Online was $19.6 million net of cash acquired of $0.4 million. Journalism Online’s operations are included in the U.S. Print and Related Services segment.

The operations of these acquired businesses are complementary to the Company’s existing products and services. Journalism Online’s Press+ offering provides subscription management and online content payment services that increase the breadth of services the Company offers to its existing base of publishing customers. The ability to bundle Helium’s content development solutions with the Company’s complete offering of content delivery resources addresses customers’ needs across the full breadth of the supply chain.

The Journalism Online and Helium acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions and the fair value of the previously-held investments in Helium over the net

6

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill related to Helium is not tax deductible. Based on the valuations, the final purchase price allocations for these 2011 acquisitions were as follows:

Accounts receivable	$	0.6
Property, plant and equipment and other long-term assets		3.3
Amortizable intangible assets		0.5
Goodwill		78.8
Accounts payable and accrued liabilities		(0.8	)
Deferred taxes-net		7.0
Total purchase price-net of cash acquired		89.4
Less: fair value of Company’s previously-held investments in Helium		13.9
Net cash paid	$	75.5

The fair values of property, plant and equipment, amortizable intangible assets and goodwill associated with the acquisitions of Journalism Online and Helium were determined to be Level 3 under the fair value hierarchy.

2010 Acquisitions

On December 31, 2010, the Company acquired the assets of 8touches, an online provider of tools that allow real estate associates, brokers, Multiple Listing Service (MLS) associations and other marketers to create customized communications materials. The purchase price for 8touches was $1.1 million. 8touches’ operations are included in the U.S. Print and Related Services segment.

On December 14, 2010, the Company acquired the assets of Nimblefish Technologies (“Nimblefish”), a provider of multi-channel marketing services to leading retail, technology, telecom, hospitality and other customers. The purchase price for Nimblefish was $3.9 million, including debt assumed of $2.0 million. The Company subsequently repaid $1.9 million of the debt assumed in December 2010. Nimblefish’s operations are included in the U.S. Print and Related Services segment.

On November 24, 2010, the Company acquired Bowne & Co., Inc. (“Bowne”), a provider of shareholder and marketing communication services, with operations in North America, Latin America, Europe and Asia. The purchase price for Bowne was $465.2 million, including debt assumed of $26.2 million and net of cash acquired of $41.4 million. Immediately following the acquisition, the Company subsequently repaid $25.4 million of the debt assumed. Bowne’s operations are included in both the U.S. Print and Related Services and International segments.

The operations of these acquired businesses are complementary to the Company’s existing products and services. As a result, the additions of these businesses are expected to improve the Company’s ability to serve customers and reduce management, real estate and manufacturing costs.

7

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

The Bowne, Nimblefish and 8touches acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill, most of which is not tax deductible. Based on the valuations, the final purchase price allocations for these 2010 acquisitions were as follows:

Accounts receivable	$	129.0
Inventories		32.1
Prepaid expenses and other current assets		18.1
Property, plant and equipment and other long-term assets		127.3
Amortizable intangible assets		159.8
Goodwill		257.9
Accounts payable and accrued liabilities		(159.7	)
Pension benefits and other long-term liabilities		(76.7	)
Deferred taxes—net		(17.6	)
Total purchase price—net of cash acquired		470.2
Less: debt assumed		28.2
Net cash paid	$	442.0

The fair values of property, plant and equipment, goodwill and intangible assets associated with the acquisitions of Bowne, Nimblefish and 8touches were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated using dealer quotes and other indicators of current market place conditions. Customer relationships intangible asset values were estimated based on future cash flows and customer attrition rates discounted using an estimated weighted-average cost of capital. The tradename intangible asset value was estimated based on the relief of royalty method.

Pro forma results

The following unaudited pro forma financial information for the three and six months ended June 30, 2011 and 2010 presents the combined results of operations of the Company, Helium, Journalism Online, Bowne, Nimblefish and 8touches as if the acquisitions had occurred at January 1, 2010.

The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s consolidated results of operations or financial condition that would have been reported had these acquisitions been completed as of the beginning of the period presented and should not be taken as indicative of the Company’s future consolidated results of operations or financial condition. Pro forma adjustments are tax-effected at the applicable statutory tax rates.

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net sales	$	2,624.2	$	2,616.4	$	5,208.6	$	5,210.5
Net earnings attributable to RR Donnelley common shareholders		20.6		80.2		79.7		116.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.10	$	0.39	$	0.39	$	0.57
Diluted	$	0.10	$	0.38	$	0.39	$	0.56

8

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

The unaudited pro forma financial information for the three months ended June 30, 2011 and 2010 included $28.8 million and $28.5 million, respectively, for the amortization of purchased intangibles. Amortization of purchased intangibles for the six months ended June 30, 2011 and 2010 was $57.3 million and $57.5 million, respectively. In addition, the unaudited pro forma financial information includes restructuring and impairment charges from operations of $47.8 million and $37.8 million for the three months ended June 30, 2011 and 2010, respectively. Restructuring and impairment charges for the six months ended June 30, 2011 and 2010 were $62.0 million and $89.6 million, respectively. The pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Depreciation and amortization of purchased assets, pre-tax	$	(0.2	)	$	(0.1	)	$	1.4		$	(1.5	)
Acquisition expenses, pre-tax		0.7			3.1			0.8			5.9
Restructuring and impairment charges, pre-tax		27.9			(24.9	)		64.5			(57.1	)
Inventory fair value adjustment, pre-tax		—			—			3.6			(5.7	)
Other pro forma adjustments, pre-tax		(8.1	)		(0.6	)		(7.2	)		6.9
Income taxes		(11.2	)		9.7			(27.2	)		25.1

3. Inventories

	June 30, 2011			December 31, 2010
Raw materials and manufacturing supplies	$	258.0		$	259.6
Work in process		200.5			184.3
Finished goods		215.5			204.7
LIFO reserve		(94.0	)		(88.0	)
Total	$	580.0		$	560.6

4. Property, Plant and Equipment

	June 30, 2011			December 31, 2010
Land	$	109.9		$	111.4
Buildings		1,213.6			1,197.9
Machinery and equipment		6,174.8			6,098.8
Property, plant and equipment—gross cost		7,498.3			7,408.1
Less: Accumulated depreciation		(5,466.8	)		(5,269.4	)
Total	$	2,031.5		$	2,138.7

During the three and six months ended June 30, 2011, depreciation expense was $106.1 million and $212.3 million, respectively. During the three and six months ended June 30, 2010, depreciation expense was $106.5 million and $216.5 million, respectively.

9

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

Assets Held for Sale

Primarily as a result of restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $7.3 million at June 30, 2011 and $6.5 million at December 31, 2010. These assets were included in other current assets in the Condensed Consolidated Balance Sheets at June 30, 2011 and December 31, 2010 at the lower of their historical net book value or their estimated fair value, less estimated costs to sell.

5. Goodwill and Other Intangible Assets

Goodwill at June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

Goodwill	U.S. Print and Related  Services			International			Total
Net book value at December 31, 2010
Goodwill	$	3,141.7		$	1,298.5		$	4,440.2
Accumulated impairment losses		(939.2	)		(974.2	)		(1,913.4	)
Total		2,202.5			324.3			2,526.8
Acquisitions		78.8			—			78.8
Foreign exchange and other adjustments		(0.2	)		14.1			13.9
Net book value at June 30, 2011
Goodwill		3,220.3			1,343.5			4,563.8
Accumulated impairment losses		(939.2	)		(1,005.1	)		(1,944.3	)
Total	$	2,281.1		$	338.4		$	2,619.5

The components of other intangible assets at June 30, 2011 and December 31, 2010 were as follows:

Other Intangible Assets	June 30, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trademarks, licenses and agreements	$	29.4	$	(23.6	)	$	5.8	$	25.7	$	(23.0	)	$	2.7
Patents		98.3		(89.7	)		8.6		98.3		(83.6	)		14.7
Customer relationship intangibles		1,257.7		(577.6	)		680.1		1,244.3		(519.8	)		724.5
Trade names		23.3		(8.6	)		14.7		22.7		(7.7	)		15.0
Total amortizable purchased intangible assets		1,408.7		(699.5	)		709.2		1,391.0		(634.1	)		756.9
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total purchased intangible assets	$	1,426.8	$	(699.5	)	$	727.3	$	1,409.1	$	(634.1	)	$	775.0

10

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

During the six months ended June 30, 2011, the Company recorded the following additions to intangible assets:

	Amount		Weighted Average Amortization Period
Trademarks, licenses and agreements	$	3.8		4.5
Trade names		0.5		5.0
Total additions	$	4.3

Amortization expense for other intangible assets was $28.8 million and $24.3 million for the three months ended June 30, 2011 and 2010, respectively, and $57.3 million and $49.0 million for the six months ended June 30, 2011 and 2010, respectively. The estimated annual amortization expense related to intangible assets as of June 30, 2011 is as follows:

For the year ending December 31,	Amount
2011	$	114.1
2012		101.1
2013		98.4
2014		96.0
2015		88.5
2016 and thereafter		268.4
Total	$	766.5

6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended June 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2011								Three Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	22.0	$	19.5	$	23.6	$	65.1	$	1.2	$	1.3	$	1.0	$	3.5
International		6.7		2.6		0.5		9.8		4.9		1.3		0.3		6.5
Corporate		0.5		0.1		0.2		0.8		—		0.5		0.2		0.7
Total	$	29.2	$	22.2	$	24.3	$	75.7	$	6.1	$	3.1	$	1.5	$	10.7

11

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

For the six months ended June 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2011								Six Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations			Other Charges		Impairment		Total
U.S. Print and Related Services	$	36.8	$	36.0	$	30.5	$	103.3	$	4.1		$	3.3	$	2.0	$	9.4
International		14.6		3.4		1.0		19.0		11.3			4.4		0.3		16.0
Corporate		2.6		0.7		0.9		4.2		(0.1	)		0.7		0.2		0.8
Total	$	54.0	$	40.1	$	32.4	$	126.5	$	15.3		$	8.4	$	2.5	$	26.2

For the three and six months ended June 30, 2011, the Company recorded net restructuring charges of $29.2 million and $54.0 million, respectively, related to employee termination costs for 1,859 employees, of whom 1,106 were terminated as of June 30, 2011. These charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as the completed or announced closing of three book and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred multi-employer pension plan partial withdrawal charges, lease termination and other restructuring charges of $22.2 million and $40.1 million for the three and six months ended June 30, 2011, respectively. Of this amount, $15.8 million related to multi-employer pension plan partial withdrawal charges primarily attributable to the announced closing of three manufacturing facilities within the U.S. Print and Related Services segment. For the three and six months ended June 30, 2011, the Company also recorded $24.3 million and $32.4 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions.

For the three and six months ended June 30, 2010, the Company recorded net restructuring charges of $6.1 million and $15.3 million, respectively, for employee termination costs for 851 employees, all of whom were terminated as of June 30, 2011. These terminations were associated with actions resulting from the reorganization of certain operations, including those within the business process outsourcing and Latin America reporting units. In addition, continuing charges resulting from the closing of two Global Turnkey Solutions manufacturing facilities in 2009 within the International segment were recorded in 2010. These actions also included the reorganization of certain operations within the magazine, catalog and retail insert and variable print reporting units and the closing of one forms and labels manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred other restructuring charges, including lease termination and other facility closure costs, of $3.1 million and $8.4 million, respectively, for the three and six months ended June 30, 2010. For the three and six months ended June 30, 2010, the Company also recorded $1.5 million and $2.5 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions.

12

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

Restructuring Reserve

The restructuring reserve as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	December 31, 2010		Restructuring Costs Charged to Results of Operations		Foreign Exchange and Other			Cash Paid			June 30, 2011
Employee terminations	$	11.2	$	54.0	$	0.1		$	(24.3	)	$	41.0
Lease terminations		28.1		14.9		0.7			(14.0	)		29.7
Multi-employer pension withdrawal obligations		13.6		15.8		—			(0.2	)		29.2
Other		1.1		9.4		(1.1	)		(7.8	)		1.6
Total	$	54.0	$	94.1	$	(0.3	)	$	(46.3	)	$	101.5

The current portion of restructuring reserves of $58.2 million was included in accrued liabilities at June 30, 2011, while the long-term portion of $43.3 million, primarily related to multi-employer pension plan partial withdrawal charges and lease termination costs, was included in other noncurrent liabilities at June 30, 2011.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June of 2012.

Payments on certain of the lease obligations are scheduled to continue until 2026 and payments on certain of the multi-employer pension plan partial withdrawal charges are scheduled to continue until 2021. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Condensed Consolidated Financial Statements of future periods.

7. Employee Benefits

The components of the estimated pension and postretirement benefits expense for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Pension expense
Service cost	$	21.5		$	20.1		$	42.8		$	40.2
Interest cost		48.9			45.9			97.0			91.9
Expected return on assets		(67.3	)		(64.4	)		(134.4	)		(128.9	)
Amortization, net		12.8			6.4			25.0			12.7
Net pension expense	$	15.9		$	8.0		$	30.4		$	15.9
Postretirement benefits expense
Service cost	$	2.3		$	3.0		$	4.6		$	6.1
Interest cost		6.2			7.1			12.4			14.2
Expected return on assets		(3.8	)		(3.9	)		(7.6	)		(7.8	)
Amortization, net		(1.3	)		(2.3	)		(2.5	)		(4.7	)
Net postretirement benefits expense	$	3.4		$	3.9		$	6.9		$	7.8

13

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

As a result of the adoption of the Patient Protection and Affordable Care Act, the Company decided to convert its current prescription drug program for certain medicare-eligible retirees to a group-based Company sponsored Medicare Part D program, or Employer Group Waiver Program (“EGWP”). Beginning January 1, 2013, EGWP subsidies to or for the benefit of this program will be used to reduce the Company’s net retiree medical and prescription drug costs until such Company net costs are eliminated, and any EGWP subsidies received in excess of the amount necessary to offset such net costs will be used to reduce the included group of retirees’ premiums. This change became effective in the second quarter of 2011 and is accounted for as a plan amendment, which resulted in the Company reducing its postretirement benefits liability by $81.5 million to $220.9 million.

8. Share-Based Compensation

The Company recognizes compensation expense, based on estimated grant date fair values, for all share-based awards issued to employees and directors, including stock options and restricted stock units. The total compensation expense related to all share-based compensation plans was $9.9 million and $16.4 million for the three and six months ended June 30, 2011, respectively. The total compensation expense related to all share-based compensation plans was $7.8 million and $16.0 million for the three and six months ended June 30, 2010, respectively.

Stock Options

The Company granted 200,000 and 540,000 stock options during the six months ended June 30, 2011 and 2010, respectively. The fair market value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The fair market value of these stock options was determined using the following assumptions:

	2011			2010
Expected volatility		36.69	%		35.61	%
Risk-free interest rate		2.54	%		2.75	%
Expected life (years)		6.25			6.25
Expected dividend yield		4.57	%		4.19	%

The grant date fair market value of these options was $4.39 and $4.81 per stock option for the six months ended June 30, 2011 and 2010, respectively.

Stock options as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2010		4,155		$	20.80		6.3	$	14.4
Granted		200			18.62		9.7
Exercised		(108	)		9.25
Cancelled/forfeited/expired		(202	)		24.96
Outstanding at June 30, 2011		4,045			20.73		6.3	$	16.9
Exercisable at June 30, 2011		1,056		$	11.48		5.3	$	8.6

14

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on June 30, 2011 and December 31, 2010, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2011 and December 31, 2010. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised for the three and six months ended June 30, 2011 was less than $0.1 million and $1.0 million, respectively. Total intrinsic value of options exercised for the three and six months ended June 30, 2010 was $0.1 million and $2.1 million, respectively.

Compensation expense related to stock options for the three and six months ended June 30, 2011 was $0.6 million and $1.4 million, respectively. Compensation expense related to stock options for the three and six months ended June 30, 2010 was $0.8 million and $1.5 million, respectively. As of June 30, 2011, $4.2 million of total unrecognized share-based compensation expense related to stock options is expected to be recognized over a weighted average period of 2.3 years.

Restricted Stock Units

Nonvested restricted stock unit awards as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2010		5,430		$	12.96
Granted		1,524			16.37
Vested		(1,858	)		12.93
Forfeited		(49	)		15.42
Nonvested at June 30, 2011		5,047		$	13.97

Compensation expense related to restricted stock units for the three and six months ended June 30, 2011 was $9.0 million and $14.4 million, respectively. Compensation expense related to restricted stock units for the three and six months ended June 30, 2010 was $7.0 million and $14.5 million, respectively. As of June 30, 2011, there was $37.6 million of unrecognized share-based compensation expense related to approximately 4.8 million restricted stock unit awards, with a weighted-average grant date fair market value of $13.87, which are expected to vest over a weighted-average period of 2.3 years.

Performance Share Units

During the six months ended June 30, 2011, a total of 235,000 performance share unit awards were granted to certain executive officers, payable upon the achievement of certain established performance targets for the three years ending December 31, 2013. Distributions under these awards are payable at the end of the performance period, which is January 1, 2011 through December 31, 2013, in common stock or cash, at the Company’s discretion. The total potential payouts range from 117,500 shares to 235,000 shares should certain performance targets be achieved. These awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee or a change in control of the Company.

Compensation expense is currently being recognized based on an estimated payout of 235,000 shares. Compensation expense related to performance share unit awards for the three and six months ended June 30,

15

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

2011 was $0.3 million and $0.6 million, respectively. As of June 30, 2011, there was $3.0 million of unrecognized share-based compensation expense related to performance share unit awards, which is expected to be recognized over a period of 2.5 years.

9. Equity

The following table summarizes the Company’s equity activity for the six months ended June 30, 2011:

	RR Donnelley Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2010	$	2,224.3		$	21.1		$	2,245.4
Net earnings		46.1			0.7			46.8
Other comprehensive income		114.7			0.2			114.9
Share-based compensation		16.4			—			16.4
Withholdings for share-based awards and other		(6.4	)		—			(6.4	)
Cash dividends paid		(107.7	)		—			(107.7	)
Payments for the acquisition of common stock		(500.0	)		—			(500.0	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

The following table summarizes the Company’s equity activity for the six months ended June 30, 2010:

	RR Donnelley Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2009	$	2,134.0		$	27.0		$	2,161.0
Net earnings (loss)		141.4			(3.2	)		138.2
Other comprehensive loss		(66.8	)		(0.1	)		(66.9	)
Share-based compensation		16.0			—			16.0
Withholdings for share-based awards and other		(1.9	)		—			(1.9	)
Cash dividends paid		(107.1	)		—			(107.1	)
Distributions to noncontrolling interests		—			(1.6	)		(1.6	)
Balance at June 30, 2010	$	2,115.6		$	22.1		$	2,137.7

Share Repurchase Program

On May 3, 2011, the Board of Directors of the Company approved a program that authorizes the repurchase of up to $1.0 billion of the Company’s common stock through December 31, 2012. Share repurchases under the program may be made from time to time through a variety of methods as determined by the Company’s management. The repurchase authorizations do not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase and may be modified, suspended or terminated at any time at the Company’s discretion. The Company terminated its existing authorization of October 29, 2008 for the repurchase of up to 10 million shares of the Company’s common stock.

Accelerated Share Repurchase Program

As part of the share repurchase program, on May 5, 2011 the Company entered into an accelerated share repurchase agreement (“ASR”) with an investment bank under which the Company agreed to repurchase $500

16

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

million of its common stock. On May 10, 2011 the Company paid the $500 million purchase price and received an initial delivery of 19.9 million shares from the investment bank subject to a 20%, or $100 million, holdback. At the conclusion of the ASR, the Company may receive additional shares or be required to pay additional cash or deliver shares (at the Company’s option) based upon the volume weighted average price of the Company’s common stock (subject to a discount agreed upon with the investment bank) over an averaging period, which is expected to end around the end of the year. The investment bank will deliver any remaining shares to the Company shortly after the end of the averaging period.

The ASR was accounted for as an initial stock purchase transaction and a forward stock purchase contract. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net earnings per share from the effective date of the ASR. The forward stock purchase contract is classified as an equity instrument.

As of June 30, 2011, based on the volume weighted average price of the Company’s common stock since the effective date of the ASR, $20.07, the investment bank would be required to deliver an additional 5.0 million shares to the Company. Increases in the volume weighted average price of the Company’s common stock over the averaging period would decrease the number of shares the investment bank would be required to deliver, or increase the amount of cash or number of shares the Company would be required to deliver to the investment bank. Decreases in the volume weighted average price of the Company’s common stock over the averaging period would increase the number of shares the investment bank would be required to deliver to the Company. As of June 30, 2011, the $100 million holdback was recorded as a reduction in additional paid-in capital in the Condensed Consolidated Balance Sheet.

10. Earnings per Share Attributable to RR Donnelley Common Shareholders

	Three Months Ended June 30,				Six Months Ended June  30,
	2011		2010		2011		2010
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	12.2	$	88.8	$	46.1	$	141.4
Denominator:
Weighted average number of common shares outstanding		196.7		206.3		201.9		206.0
Dilutive options and awards (a)		2.8		3.6		2.6		3.4
Diluted weighted average number of common shares outstanding		199.5		209.9		204.5		209.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.06	$	0.43	$	0.23	$	0.69
Diluted	$	0.06	$	0.42	$	0.23	$	0.68
Cash dividends paid per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a) Diluted net earnings per share attributable to RR Donnelley common shareholders takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the three and six months ended June 30, 2011, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2011, options to purchase 3.5 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

17

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

For the three and six months ended June 30, 2010, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2010, options to purchase 3.6 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

As discussed in Note 9, on May 10, 2011, the Company received an initial delivery of 19.9 million shares under the ASR. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net earnings per share from the effective date of the agreement. Based upon the volume weighted average price of the Company’s common stock through June 30, 2011, the shares related to the forward stock purchase component of the ASR were anti-dilutive for the three and six months ended June 30, 2011.

11. Comprehensive Income (Loss)

	Three Months Ended June  30,					Six Months Ended June  30,
	2011		2010			2011		2010
Net earnings	$	12.5	$	89.5		$	46.8	$	138.2
Translation adjustments		26.1		(65.6	)		52.2		(72.0	)
Adjustment for net periodic pension and postretirement benefit cost, net of tax		55.5		2.5			62.2		4.9
Change in fair value of derivatives, net of tax		0.4		0.1			0.5		0.2
Comprehensive income		94.5		26.5			161.7		71.3
Less: comprehensive income (loss) attributable to noncontrolling interests		0.5		0.7			0.9		(3.3	)
Comprehensive income attributable to RR Donnelley common shareholders	$	94.0	$	25.8		$	160.8	$	74.6

For the three and six months ended June 30, 2011, the changes in other comprehensive income were net of tax provisions of $0.3 million, in each respective period, related to the change in fair value of derivatives and $35.9 million and $39.9 million, respectively, related to the adjustment for net periodic pension and postretirement benefit costs. For the three and six months ended June 30, 2010, the changes in other comprehensive income were net of tax provisions of less than $0.1 million, in each respective period, related to the change in fair value of derivatives and tax benefits of $1.4 million and $2.8 million, respectively, for the adjustment for net periodic pension and postretirement benefit costs.

12. Segment Information

The Company operates primarily in the printing industry, with related 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 products 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 related print and other logistics, premedia, print management and other

18

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

services. This segment’s products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, office products, 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 products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, packaging and 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, primarily components of net pension and postretirement benefits expense other than service cost, are included in Corporate and not allocated to operating segments. In addition, 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 most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements.

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2011
U.S. Print and Related Services	$	1,927.1	$	(6.2	)	$	1,920.9	$	132.8		$	98.9	$	38.1
International		718.6		(16.1	)		702.5		43.6			31.6		21.1
Total operating segments		2,645.7		(22.3	)		2,623.4		176.4			130.5		59.2
Corporate		—		—			—		(60.3	)		10.2		21.9
Total operations	$	2,645.7	$	(22.3	)	$	2,623.4	$	116.1		$	140.7	$	81.1
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2010
U.S. Print and Related Services	$	1,818.3	$	(9.0	)	$	1,809.3	$	179.5		$	98.7	$	18.5
International		611.7		(12.4	)		599.3		42.7			28.1		17.7
Total operating segments		2,430.0		(21.4	)		2,408.6		222.2			126.8		36.2
Corporate		—		—			—		(46.9	)		8.0		18.4
Total operations	$	2,430.0	$	(21.4	)	$	2,408.6	$	175.3		$	134.8	$	54.6

19

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2011
U.S. Print and Related Services	$	3,885.7	$	(23.7	)	$	3,862.0	$	274.7		$	6,407.2	$	198.8	$	55.4
International		1,379.7		(34.8	)		1,344.9		87.7			2,483.3		62.0		46.9
Total operating segments		5,265.4		(58.5	)		5,206.9		362.4			8,890.5		260.8		102.3
Corporate		—		—			—		(136.9	)		135.7		20.1		25.9
Total operations	$	5,265.4	$	(58.5	)	$	5,206.9	$	225.5		$	9,026.2	$	280.9	$	128.2
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2010
U.S. Print and Related Services	$	3,660.6	$	(14.5	)	$	3,646.1	$	343.3		$	6,151.1	$	199.7	$	44.6
International		1,202.1		(24.5	)		1,177.6		76.4			2,062.7		57.8		30.1
Total operating segments		4,862.7		(39.0	)		4,823.7		419.7			8,213.8		257.5		74.7
Corporate		—		—			—		(98.6	)		392.0		15.9		19.8
Total operations	$	4,862.7	$	(39.0	)	$	4,823.7	$	321.1		$	8,605.8	$	273.4	$	94.5

13. Commitments and Contingencies

The Company is subject to laws and regulations relating to the protection of the environment. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are not discounted. The Company has been designated as a potentially responsible party in fourteen active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate seven other previously owned facilities and three other currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that the Company’s liability could be joint and several, meaning that the Company could be required to pay an amount in excess of its proportionate share of the remediation costs. The Company’s understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of the Company’s estimated liability. The Company established reserves, recorded in accrued liabilities and other noncurrent liabilities, that it believes are adequate to cover its share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. While it is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that the Company may undertake in the future, in the opinion of management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect on the Company’s consolidated annual results of operations, financial position or cash flows.

From time to time, the Company’s customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these

20

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material adverse effect on the Company’s consolidated annual results of operations, financial position or cash flows.

14. Debt

The Company’s debt consists of the following:

	June 30, 2011			December 31, 2010
Credit facility borrowings	$	475.0		$	120.0
5.625% senior notes due January 15, 2012		158.6			158.6
4.95% senior notes due April 1, 2014		599.4			599.2
5.50% senior notes due May 15, 2015		399.7			499.6
8.60% senior notes due August 15, 2016		346.4			346.0
6.125% senior notes due January 15, 2017		522.7			622.0
7.25% senior notes due May 15, 2018		600.0			—
11.25% senior notes due February 1, 2019 (a)		183.8			400.0
7.625% senior notes due June 15, 2020		400.0			400.0
8.875% debentures due April 15, 2021		80.9			80.9
6.625% debentures due April 15, 2029		199.3			199.3
8.820% debentures due April 15, 2031		69.0			68.9
Other, including capital leases		42.5			35.5
Total debt		4,077.3			3,530.0
Less: current portion		(649.6	)		(131.4	)
Long-term debt	$	3,427.7		$	3,398.6

(a) On May 17, 2011, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75%, as a result of downgrades in the ratings of the notes by the rating agencies.

The fair values of the senior notes and debentures, which were based upon the interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s debt was greater than its book value by approximately $78.8 million and $259.3 million at June 30, 2011 and December 31, 2010, respectively.

On June 1, 2011, the Company issued $600.0 million of 7.25% senior notes due May 15, 2018. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2011. The net proceeds from the offering were used to repurchase $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The repurchases resulted in a pre-tax loss on debt extinguishment of $68.6 million. The remaining net proceeds were used for general corporate purposes and to repay outstanding borrowings under the Company’s unsecured and committed revolving credit agreement (the “Credit Agreement”).

Interest income was $3.6 million and $6.2 million for the three and six months ended June 30, 2011, respectively. Interest income was $1.7 million and $3.6 million for the three and six months ended June 30, 2010, respectively.

21

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

15. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities on the Condensed Consolidated Balance Sheets at their respective fair values. Unrealized gains and losses related to derivatives are recorded in other comprehensive income (loss), net of applicable income taxes, or in the Condensed Consolidated Statements of Operations, depending on the purpose for which the derivative is held. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in the Condensed Consolidated Statements of Operations. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge at inception, or fail to meet the criteria thereafter, are recognized currently in the Condensed Consolidated Statements of Operations. At the inception of a hedge transaction, the Company formally documents the hedge relationship and the risk management objective for undertaking the hedge. In addition, the Company assesses both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the Condensed Consolidated Statements of Operations.

The Company is exposed to the impact of foreign currency fluctuations in certain countries in which it operates. The exposure to foreign currency movements is limited in most countries because the operating revenues and expenses of its various subsidiaries and business units are substantially in the local currency of the country in which they operate. To the extent borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange forward contracts and cross-currency swaps to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the implied gains and losses associated with the fair values of foreign currency exchange contracts and cross-currency swaps are generally offset by gains and losses on underlying payables, receivables and net investments in foreign subsidiaries. The Company does not use derivative financial instruments for trading or speculative purposes.

The Company has entered into foreign exchange forward contracts in order to manage the currency exposure of certain receivables and liabilities. The foreign exchange forward contracts were not designated as hedges, and accordingly, the fair value gains or losses from these foreign currency derivatives are recognized currently in the Condensed Consolidated Statements of Operations, generally offsetting the foreign exchange gains or losses on the exposures being managed. The aggregate notional value of the forward contracts at June 30, 2011 and December 31, 2010 was $102.5 million and $100.9 million, respectively. The fair values of foreign exchange forward contracts were determined to be Level 2 under the fair value hierarchy and are valued using market exchange rates.

On April 9, 2010, the Company entered into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements effectively changed the interest rate on $600 million of its fixed-rate senior notes to floating rate LIBOR plus a basis point spread. These interest rate swaps, with a notional value of $600 million, are designated as fair value hedges against changes in the value of the Company’s 4.95% senior notes due April 1, 2014, which are attributable to changes in the benchmark interest rate. The Company evaluates the credit value adjustments of the interest rate swap agreements, which take into account the possibility of counterparty and the Company’s own default, on at least a quarterly basis. The Company’s agreements with each of its counterparties contain a provision where the Company could be declared in default on its derivative obligations if it either defaults or, in certain cases, is capable of being declared in default on any of its indebtedness greater than specified thresholds. These agreements also contain a provision where the Company

22

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

could be declared in default subsequent to a merger or restructuring type event if the creditworthiness of the resulting entity is materially weaker. The fair values of the interest rate swaps were determined to be Level 2 under the fair value hierarchy and are valued using market interest rates.

At June 30, 2011 and December 31, 2010, the total fair value of the Company’s forward contracts, which were the only derivatives not designated as hedges, and fair value hedges and the accounts on the Condensed Consolidated Balance Sheets in which the fair value amounts are included are shown in the table below:

	June 30, 2011		December 31, 2010
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.3	$	0.5
Accrued liabilities		0.3		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	20.2	$	16.8

The pre-tax gains (losses) related to derivatives not designated as hedges recognized in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2011 and 2010 are shown in the table below:

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of Operations	Three months ended June  30,					Six months ended June  30,
		2011		2010			2011		2010
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)
Total gain (loss) recognized in the condensed consolidated statements of operations	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)

For derivatives designated as fair value hedges, the pre-tax gains (losses) related to the hedged items, attributable to changes in the hedged benchmark interest rate, and the offsetting gain or loss on the related interest rate swaps for the three and six months ended June 30, 2011 and 2010 are shown in the table below:

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of  Operations	Three months ended June  30,						Six months ended June  30,
		2011			2010			2011			2010
Fair Value Hedges
Interest rate swaps	Investment and other income (expense)	$	7.2		$	14.2		$	3.3		$	14.2
Hedged items	Investment and other income (expense)		(6.7	)		(13.0	)		(2.6	)		(13.0	)
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other income (expense)	$	0.5		$	1.2		$	0.7		$	1.2

The Company also recognized a net reduction to interest expense of $2.5 million and $5.1 million for the three and six months ended June 30, 2011, respectively, and $2.2 million in each respective period for the three and six months ended June 30, 2010, related to the Company’s fair value hedges, which includes interest accruals on the derivatives and amortization of the basis in the hedged items.

23

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

The pre-tax losses related to derivatives designated as cash flow hedges for the three months ended June 30, 2011 and 2010 are shown in the table below:

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)	Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010			2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—	Interest expense—net	$	(0.1	)	$	(0.1	)	Loss on debt extinguishment	$	(0.5	)	$	—

The pre-tax losses related to derivatives designated as cash flow hedges for the six months ended June 30, 2011 and 2010 are shown in the table below:

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)		Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010				2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—		Interest expense—net	$	(0.3	)	$	(0.3	)	Loss on debt extinguishment	$	(0.5	)	$	—

Terminated Derivatives

In May 2005, the Company terminated its interest rate lock agreements which were designated as cash flow hedges and used to hedge against fluctuations in interest rates. This termination resulted in a loss of $12.9 million recorded in accumulated other comprehensive loss, which was being recognized in interest expense over the term of the hedged forecasted interest payments. On June 15, 2011, the Company repurchased $100 million of the 5.50% senior notes due May 15, 2015 which were hedged as part of the interest rate lock agreements. Pre-tax losses of $0.5 million were reclassified from accumulated other comprehensive loss to loss on debt extinguishment in the Consolidated Statement of Operations as a result of the change in expected forecasted interest payments. In addition, during the third quarter of 2009, the Company repurchased $174.2 million of the 4.95% senior notes due May 15, 2010 which were also hedged as part of the interest rate lock agreements. Pre-tax losses of $2.7 million were reclassified from accumulated other comprehensive loss to loss on debt extinguishment in the Consolidated Statement of Operations as a result of the change in expected forecasted interest payments. At June 30, 2011, a balance of $1.2 million remained in accumulated other comprehensive loss, of which $0.3 million is expected to be reclassified to earnings over the next twelve months.

16. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s only assets and liabilities adjusted to fair value on a recurring basis are pension and other postretirement plan assets, foreign exchange forward contracts and interest rate swaps. See Note 15 for further discussion on the fair

24

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

value of the Company’s foreign exchange forward contracts and interest rate swaps as of June 30, 2011 and December 31, 2010.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. See Note 2 for further discussion on the fair value of assets and liabilities associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition and still held at June 30, 2011 are summarized below:

	Impairment Charge		Fair Value Measurement (Level 3)		June 30, 2011 Net Book Value
Long-lived assets held and used (1)	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal (2)		18.2		1.3		1.3
Total	$	32.3	$	69.8	$	67.1

(1) Long-lived assets held and used with a carrying amount of $82.6 million were written down to their fair value of $68.5 million, resulting in an impairment charge of $14.1 million for the six months ended June 30, 2011. The fair values used for measuring impairment of land, buildings, machinery and equipment and leasehold improvements were determined using Level 3 inputs. These fair values were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

(2) Long-lived assets held for sale or disposal with a carrying amount of $19.5 million were written down to their fair value of $1.3 million, resulting in an impairment charge of $18.2 million. The fair values of the land, buildings and machinery and equipment classified as held for sale or disposal were determined using Level 3 inputs and estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

See Note 14 for the fair value of the Company’s debt.

17. Income Taxes

The Company’s unrecognized tax benefits at June 30, 2011 and December 31, 2010 were as follows:

Balance at December 31, 2010	$	157.1
Additions for tax positions of the current year		3.0
Additions for tax positions of the prior year		0.1
Reductions for tax positions of prior years		(9.5	)
Settlements during the year		(1.7	)
Balance at June 30, 2011	$	149.0

As of June 30, 2011, it is reasonably possible that the total amounts of unrecognized tax benefits will decrease within twelve months by as much as $70.8 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal and state tax positions.

25

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES (“RR DONNELLEY”)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts in millions, except per share data unless otherwise indicated)

18. New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-05 “Comprehensive Income (Topic 220): Presentation of Comprehensive Income” (“ASU 2011-05”), which prohibits the presentation of other comprehensive income in stockholders’ equity and requires the presentation of net income, items of other comprehensive income and total comprehensive income in one continuous statement or two separate but consecutive statements. ASU 2011-05 will be effective for the Company in the first quarter of 2012 and will impact the Company’s financial statement presentation, but otherwise is not expected to have a material impact on the Company’s consolidated financial position, annual results of operations or cash flows.

In May 2011, the FASB issued Accounting Standards Update No. 2011-04 “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”), which amends the definition of fair value measurement principles and disclosure requirements to eliminate differences between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 requires new quantitative and qualitative disclosures about the sensitivity of recurring Level 3 measurement disclosures, as well as transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 will be effective for the Company in the first quarter of 2012 and will primarily impact the Company’s disclosures, but otherwise is not expected to have a material impact on the Company’s consolidated financial position, annual results of operations or cash flows.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Company Overview

R.R. Donnelley & Sons Company (“RR Donnelley,” the “Company,” “we,” “us,” and “our”) is a global provider of integrated communications. Founded more than 146 years ago, the Company works collaboratively with more than 60,000 customers worldwide to develop custom communications solutions that reduce costs, enhance return on investment and ensure compliance. Drawing on a range of proprietary and commercially available digital and conventional technologies deployed across four continents, the Company employs a suite of leading Internet-based capabilities and other resources to provide premedia, printing, logistics and business process outsourcing products and services to leading clients in virtually every private and public sector.

Business Acquisitions

On June 21, 2011, the Company acquired Helium, Inc. (“Helium”), an online community offering publishers, catalogers and other customers stock and custom content, as well as a comprehensive range of editorial solutions, in which the Company previously held an equity investment. Helium’s operations are included in the U.S. Print and Related Services segment.

On March 24, 2011, the Company acquired Journalism Online, LLC (“Journalism Online”), an online provider of tools that allow consumers to purchase online subscriptions from publishers. Journalism Online’s operations are included in the U.S. Print and Related Services segment.

On December 31, 2010, the Company acquired the assets of 8touches, an online provider of tools that allow real estate associates, brokers, Multiple Listing Service (MLS) associations and other marketers to create customized communications materials. 8touches’ operations are included in the U.S. Print and Related Services segment.

On December 14, 2010, the Company acquired the assets of Nimblefish Technologies (“Nimblefish”), a provider of multi-channel marketing services to leading retail, technology, telecommunications, hospitality and other customers. Nimblefish’s operations are included in the U.S. Print and Related Services segment.

On November 24, 2010, the Company acquired Bowne & Co., Inc. (“Bowne”), a provider of shareholder and marketing communication services, with operations in North America, Latin America, Europe and Asia. Bowne’s operations are included in both the U.S. Print and Related Services and International segments.

Segment Description

The Company operates primarily in the commercial print portion of 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 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 related print and other logistics, premedia, print management and other services. This segment’s products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, office products, statement printing, premedia and logistics services.

27

International

The International segment includes the Company’s non-U.S. printing operations in Asia, Europe, Latin America and Canada. This segment’s products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, packaging and 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, primarily components of net pension and postretirement benefits expense other than service cost, are included in Corporate and not allocated to operating segments.

Executive Summary

Financial Performance: Three Months Ended June 30, 2011

The changes in the Company’s income from operations, operating margin, net earnings attributable to RR Donnelley common shareholders and net earnings attributable to RR Donnelley common shareholders per diluted share for the three months ended June 30, 2011, from the three months ended June 30, 2010, were due primarily to the following (in millions, except margin and per share data):

	Income  from Operations			Operating Margin			Net Earnings Attributable to RR Donnelley Common Shareholders			Net Earnings Attributable to RR Donnelley Common Shareholders Per Diluted Share
For the three months ended June 30, 2010	$	175.3			7.3	%	$	88.8		$	0.42
2011 restructuring and impairment charges		(75.7	)		(2.9	%)		(57.8	)		(0.29	)
2010 restructuring and impairment charges		10.7			0.4	%		7.6			0.04
Acquisition-related expenses		2.4			0.1	%		2.3			0.01
2011 gain on Helium investment		—			—			9.5			0.05
2011 loss on debt extinguishment		—			—			(44.3	)		(0.22	)
Operations		3.4			(0.5	%)		6.1			0.05
For the three months ended June 30, 2011	$	116.1			4.4	%	$	12.2		$	0.06

2011 pre-tax restructuring and impairment charges: included charges of $29.2 million for employee termination costs, substantially all of which were associated with restructuring actions resulting from the reorganization of certain operations; $22.2 million of other restructuring costs, which consisted primarily of $15.8 million related to multi-employer pension plan partial withdrawal charges, as well as lease termination costs; and $24.3 million for impairment of long-lived assets. The majority of the restructuring and impairment charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as charges related to the closings of two book and directories facilities and one commercial manufacturing facility, all within the U.S. Print and Related Services segment.

28

2010 pre-tax restructuring and impairment charges: included charges of $6.1 million for employee termination costs, substantially all of which were associated with restructuring actions resulting from the reorganization of certain operations and the exiting of certain business activities; $3.1 million of other restructuring costs; and $1.5 million for impairment of long-lived assets.

Acquisition-related expenses: included pre-tax charges of $0.9 million ($0.8 million after-tax) related to legal, accounting and other expenses for the three months ended June 30, 2011, primarily associated with acquisitions completed. For the three months ended June 30, 2010, these pre-tax charges were $3.3 million ($3.1 million after-tax).

2011 gain on Helium investment: included a pre-tax gain of $9.8 million as a result of the acquisition of Helium, in which the Company previously held an equity investment. The pre-tax gain is net of the Company’s portion of the transaction costs incurred by Helium as a result of the acquisition.

2011 loss on debt extinguishment: included a pre-tax loss of $68.6 million on the repurchases of $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The $68.6 million pre-tax loss also includes the reclassification of a $0.5 million pre-tax loss from accumulated other comprehensive loss to loss on debt extinguishment due to the change in the hedged forecasted interest payments resulting from the repurchase of the 5.50% senior notes.

Operations: reflected higher volume in the International segment, logistics and financial print, as well as cost savings from restructuring actions and productivity efforts, which were partially offset by higher pension and other benefits-related expenses, a decrease in books and directories volume and continued price pressures. Additionally, income tax expense decreased due to the release of reserves related to the resolution of certain state audits and the release of valuation allowances on certain deferred tax assets. See further details in the review of operating results by segment that follows below.

Financial Performance: Six Months Ended June 30, 2011

The changes in the Company’s income from operations, operating margin, net earnings attributable to RR Donnelley common shareholders and net earnings attributable to RR Donnelley common shareholders per diluted share for the six months ended June 30, 2011, from the six months ended June 30, 2010, were due primarily to the following (in millions, except margin and per share data):

	Income from Operations			Operating Margin			Net Earnings Attributable to RR Donnelley Common Shareholders			Net Earnings Attributable to RR Donnelley Common Shareholders Per Diluted Share
For the six months ended June 30, 2010	$	321.1			6.7	%	$	141.4		$	0.68
2011 restructuring and impairment charges		(126.5	)		(2.4	%)		(92.1	)		(0.45	)
2010 restructuring and impairment charges		26.2			0.5	%		18.2			0.09
Acquisition-related expenses		4.0			0.1	%		3.7			0.02
2011 gain on Helium investment		—			—			9.5			0.05
2011 loss on debt extinguishment		—			—			(44.3	)		(0.22	)
2010 Venezuela devaluation		—			—			4.5			0.02
Operations		0.7			(0.6	%)		5.2			0.04
For the six months ended June 30, 2011	$	225.5			4.3	%	$	46.1		$	0.23

2011 pre-tax restructuring and impairment charges: included charges of $54.0 million for employee termination costs, substantially all of which were associated with restructuring actions resulting from the reorganization of certain operations; $40.1 million of other restructuring costs, which consisted primarily of

29

$15.8 million related to multi-employer pension plan partial withdrawal charges, as well as lease termination costs; and $32.4 million for impairment of long-lived assets. The majority of the restructuring and impairment charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as charges related to the closing of three book and directories facilities and one commercial manufacturing facility, all within the U.S. Print and Related Services segment.

2010 pre-tax restructuring and impairment charges: included charges of $15.3 million for employee termination costs, substantially all of which were associated with restructuring actions resulting from the reorganization of certain operations and the exiting of certain business activities; $8.4 million of other restructuring costs; and $2.5 million for impairment of long-lived assets.

Acquisition-related expenses: included pre-tax charges of $1.3 million ($1.2 million after-tax) related to legal, accounting and other expenses for the six months ended June 30, 2011, primarily associated with acquisitions completed. For the six months ended June 30, 2010, these pre-tax charges were $5.3 million ($4.9 million after-tax).

2011 gain on Helium investment: included a pre-tax gain of $9.8 million as a result of the acquisition of Helium, in which the Company previously held an equity investment. The pre-tax gain is net of the Company’s portion of the transaction costs incurred by Helium as a result of the acquisition.

2011 loss on debt extinguishment: included a pre-tax loss of $68.6 million on the repurchases of $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The $68.6 million pre-tax loss also includes the reclassification of a $0.5 million pre-tax loss from accumulated other comprehensive loss to loss on debt extinguishment due to the change in the hedged forecasted interest payments resulting from the repurchase of the 5.50% senior notes.

2010 Venezuela devaluation: currency devaluation in Venezuela resulted in a pre-tax loss of $8.9 million ($8.1 million after-tax) and an increase in loss attributable to noncontrolling interest of $3.6 million.

Operations: reflected higher volume in the International segment, logistics and financial print, as well as cost savings from restructuring actions and productivity efforts, which were partially offset by higher pension and other benefits-related expenses, a decrease in books and directories and variable print volume, along with continued price pressures. Additionally, income tax expense decreased due to the release of reserves related to the resolution of certain state audits and the release of valuation allowances on certain deferred tax assets. See further details in the review of operating results by segment that follows below.

Overview

During the second quarter of 2011, the Company’s net sales benefited from the acquisition of Bowne. On a consolidated basis, net sales increased $214.8 million, or 8.9%, from the second quarter of 2010. However, pro forma for acquisitions, net sales remained relatively constant (See Note 2 to the Condensed Consolidated Financial Statements). Changes in foreign exchange rates increased reported net sales $46.0 million, or 1.9%. The increase in reported net sales was also due to volume growth in the International segment and logistics reporting unit, as well as an increase in pass-through paper sales and capital market transactions. These increases were partially offset by a decrease in books and directories volume, continued price pressure, as well as the slowdown in growth of the U.S. economy.

The Company continued to make significant progress in the integration of Bowne during the second quarter. Restructuring actions to eliminate duplicate facilities and personnel have been implemented throughout the affected operations. Along with the Company’s continuing focus on productivity improvement, these actions are expected to result in significant cost savings.

On May 3, 2011, the Board of Directors of the Company approved a program that authorizes the repurchase of up to $1.0 billion of the Company’s common stock through December 31, 2012. Share repurchases under the program may be made from time to time through a variety of methods as determined by the Company’s

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management. The repurchase authorizations do not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase and may be modified, suspended or terminated at any time at the Company’s discretion. The Company terminated its existing authorization for the repurchase of up to 10 million shares of the Company’s common stock.

As part of the share repurchase program, on May 5, 2011, the Company entered into an accelerated share repurchase agreement (“ASR”) with an investment bank under which the Company agreed to repurchase $500 million of its common stock. On May 10, 2011, the Company paid the $500 million purchase price and received an initial delivery of 19.9 million shares from the investment bank subject to a 20%, or $100 million, holdback. At the conclusion of the ASR, the Company may receive additional shares or be required to pay additional cash or deliver shares (at the Company’s option) based upon the volume weighted average price of the Company’s common stock (subject to a discount agreed upon with the investment bank) over an averaging period, which is expected to end around the end of the year. The investment bank will deliver any remaining shares to the Company shortly after the end of the averaging period. As of June 30, 2011, the Company had 187.8 million shares outstanding.

On June 1, 2011, the Company issued $600.0 million of 7.25% senior notes due May 15, 2018. The net proceeds from the offering were used to repurchase $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The remaining net proceeds were used for general corporate purposes and to repay outstanding borrowings under the unsecured and committed revolving credit agreement (the “Credit Agreement”). The repurchases resulted in a pre-tax loss on debt extinguishment of $68.6 million.

OUTLOOK

Competition and Strategy

The print and related services industry, in general, continues to have excess capacity and remains highly competitive. Despite some consolidation in recent years, the printing industry remains highly fragmented. Across the Company’s range of products and services, competition is based primarily on price, in addition to quality and the ability to service the special needs of customers. Management expects that prices for the Company’s products and services will continue to be a focal point for customers in coming years. Therefore, the Company believes it needs to continue to lower its cost structure and differentiate its product and service offerings.

Technological changes, including the electronic distribution of documents and data, online distribution and hosting of media content, advances in digital printing, print-on-demand and Internet technologies, continue to impact the market for the Company’s products and services. The Company seeks to leverage the distinctive capabilities of its products and services to improve its customers’ communications, whether in paper form or through electronic communications. The Company’s goal remains to help its customers succeed by delivering effective and targeted communications in the right format to the right audiences at the right time. Management believes that with the Company’s competitive strengths, including its broad range of complementary print-related services, strong logistics capabilities, technology leadership, depth of management experience, customer relationships and economies of scale, the Company has developed and can further develop valuable, differentiated solutions for its customers. The Company seeks to leverage its unified platform and strong customer relationships in order to serve a larger share of its customers’ print and related services needs.

As a substitute for print, the impact of digital technologies has been felt mainly in directories, forms and statement printing, as electronic communication and transaction technology has eliminated or reduced the role of many traditional paper forms. Electronic substitution has continued to accelerate in directory printing in part driven by environmental concerns and cost pressures at key customers. In addition, rapid growth in the adoption of e-books is having an increasing impact on consumer print book volume, though only a limited impact on educational and specialty books. The future impact of technology on the Company’s business is difficult to predict and could result in additional expenditures to restructure impacted operations or develop new

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technologies. In addition, the Company has made targeted acquisitions and organic investments to offer customers innovative services and solutions that further secure the Company’s position as a technology leader in the industry.

The Company has implemented a number of strategic initiatives to reduce its overall cost structure and improve efficiency, including the restructuring, reorganization and integration of operations and streamlining of administrative and support activities. Future cost reduction initiatives could include the reorganization of operations and the consolidation of facilities. Implementing such initiatives might result in future restructuring or impairment charges, which may be substantial. Management also reviews the Company’s operations and management structure on a regular basis to balance appropriate risks and opportunities to maximize efficiencies and to support the Company’s long-term strategic goals. In addition, the continued integration of Bowne is expected to result in additional restructuring charges.

Seasonality

Advertising and consumer spending trends affect demand in several of the end-markets served by the Company. Historically, demand for printing of magazines, catalogs, retail inserts and books is higher in the second half of the year driven by increased advertising pages within magazines, and holiday catalog, retail insert and book volumes. This typical seasonal pattern can be impacted by overall trends in the U.S. and world economy. The Company expects the seasonality impact in 2011 and future years to be in line with historical patterns.

Raw Materials

The primary raw materials the Company uses in its print businesses are paper and ink. The Company negotiates with leading suppliers to maximize its purchasing efficiencies and uses a wide variety of paper grades, formats, ink formulations and colors. In addition, a substantial amount of paper used by the Company is supplied directly by customers. Variations in the cost and supply of certain paper grades and ink formulations used in the manufacturing process may affect the Company’s consolidated financial results. Paper prices increased during the first half of 2011, and volatility in future years is expected. Generally, customers directly absorb the impact of changing prices on customer-supplied paper. With respect to paper purchased by the Company, the Company has historically passed most increases and decreases through to its customers. Contractual arrangements and industry practice should support the Company’s continued ability to pass on any future paper price increases to a large extent, but there is no assurance that market conditions will continue to enable the Company to successfully do so. In addition, management believes that paper supply is consolidating, and there may be shortfalls in the future in supplies necessary to meet the demands of the entire marketplace. Higher paper prices and tight paper supplies may have an impact on customers’ demand for printed products.

The Company continues to monitor the impact of changes in the price of crude oil and other energy costs, which impacts the Company’s ink suppliers, logistics operations and manufacturing costs. Crude oil and energy prices continue to be volatile. The Company believes its logistics operations will continue to be able to pass a substantial portion of any increases in fuel prices directly to its customers in order to offset the impact of related cost increases. The Company generally cannot pass on to customers the impact of higher energy prices on its manufacturing costs. The Company cannot predict sudden changes in energy prices and the impact that possible future energy price increases or decreases might have upon either operating costs or customer demand and the related impact either will have on the Company’s consolidated annual results of operations, financial position or cash flows.

Distribution

The Company’s products are distributed to end-users through the U.S. or foreign postal services, through retail channels, electronically or by direct shipment to customer facilities. Through its logistics operations, the

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Company manages the distribution of most customer products printed by the Company in the U.S. and Canada to maximize efficiencies and reduce costs for customers.

Postal costs are a significant component of many customers’ cost structures and postal rate changes can influence the number of pieces that the Company’s customers are willing to print and mail. On April 17, 2011, new postage rates went into effect for certain classes of mail in the United States. The new rates increased the cost of mailing these classes of mail by approximately 1.7%, which is the cap under the Postal Accountability and Enhancement Act (“the Act”). Under the Act, it is anticipated that postage will increase annually by an amount equal to or slightly less than the Consumer Price Index. As a leading provider of print logistics and the largest mailer of standard mail in the U.S., the Company works closely with the U.S. Postal Service and its customers to offer innovative products and services to minimize costs. While the Company does not directly absorb the impact of higher postal rates on its customers’ mailings, demand for products distributed through the U.S. or foreign postal services is expected to be impacted by changes in the postal rates.

Risks Related to Market Conditions

The Company performs its annual goodwill impairment tests as of October 31, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. As part of its interim review for indicators of impairment, management analyzed potential changes in value of individual reporting units based on each reporting unit’s operating results for the six months ended June 30, 2011 compared to expected results as of October 31, 2010. In addition, management considered how other key assumptions, including discount rates and expected long-term growth rates, used in last year’s impairment analysis, could be impacted by changes in market conditions and economic events. Based on this interim assessment, management concluded that as of June 30, 2011, no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value. Significant changes in global economic conditions could result in changes to expectations of future financial results and key valuation assumptions. These changes could result in revisions of management’s estimates of the fair value of the Company’s reporting units and could result in a review for impairment of goodwill prior to October 31, 2011, the Company’s next annual measurement date. Any required interim impairment reviews could result in a material goodwill impairment charge.

Financial Review

In the financial review that follows, the Company discusses its consolidated results of operations, financial position, cash flows and certain other information. This discussion should be read in conjunction with the Company’s condensed consolidated financial statements and related notes.

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RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2011 AS

COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2010

The following table shows the results of operations for the three months ended June 30, 2011 and 2010:

	Three Months Ended June 30,
	2011		2010		$ Change			% Change
			(in millions)
Net sales
Products	$	2,356.9	$	2,157.4	$	199.5			9.2	%
Services		266.5		251.2		15.3			6.1	%
Total net sales		2,623.4		2,408.6		214.8			8.9	%
Products cost of sales (exclusive of depreciation and amortization shown below)		1,777.2		1,636.1		141.1			8.6	%
Services cost of sales (exclusive of depreciation and amortization shown below)		204.4		183.5		20.9			11.4	%
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below)		309.3		268.2		41.1			15.3	%
Restructuring and impairment charges		75.7		10.7		65.0			607.5	%
Depreciation and amortization		140.7		134.8		5.9			4.4	%
Total operating expenses		2,507.3		2,233.3		274.0			12.3	%
Income from operations	$	116.1	$	175.3	$	(59.2	)		(33.8	%)

Consolidated

Net sales of products for the three months ended June 30, 2011 increased $199.5 million, or 9.2%, to $2,356.9 million versus the same period in the prior year. Changes in foreign exchange rates increased net sales by $41.2 million, or 1.9%. The increase in net sales of products was due to the acquisition of Bowne, higher volume driven by increased business in Latin America and Asia, volume growth in the logistics reporting unit, as well as an increase in pass-through paper sales and capital market transactions. These increases were partially offset by a decrease in books and directories volume and continued price pressures.

Net sales from services for the three months ended June 30, 2011 increased $15.3 million, or 6.1%, to $266.5 million versus the same period in the prior year. Net sales from services increased due to the acquisition of Bowne and higher logistics volumes, driven in part by higher print and other logistics services, along with growth in mail center and commingling services. Changes in foreign exchange rates resulted in increases to net sales of $4.8 million, or 1.9%.

Products cost of sales increased $141.1 million to $1,777.2 million for the three months ended June 30, 2011 versus the same period in the prior year primarily due to the acquisition of Bowne, increased volume in capital market transactions and higher pricing on materials. Products cost of sales as a percentage of products net sales decreased from 75.8% to 75.4%, reflecting continued productivity efforts and a higher recovery on print-related by-products, partially offset by continued price pressures.

Services cost of sales increased $20.9 million to $204.4 million for the three months ended June 30, 2011 versus the same period in the prior year primarily due to the acquisition of Bowne and higher logistics volume. Services cost of sales as a percentage of net sales increased from 73.0% to 76.7%, reflecting an increase in logistics costs of transportation and an unfavorable mix in compliance services in the financial print reporting unit.

Selling, general and administrative expenses increased $41.1 million to $309.3 million for the three months ended June 30, 2011 versus the same period in the prior year due to the acquisition of Bowne and higher pension

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and other benefits-related expenses, partially offset by cost savings from restructuring activities. Selling, general and administrative expenses as a percentage of net sales increased from 11.1% to 11.8%, reflecting the acquisition of Bowne and increased pension and other benefits-related expenses.

For the three months ended June 30, 2011, the Company recorded net restructuring and impairment charges of $75.7 million compared to $10.7 million in the same period of 2010. In 2011, these charges included $29.2 million for workforce reductions of 1,150 employees (of whom 452 were terminated as of June 30, 2011) associated with actions resulting from the reorganization of certain operations. These charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as the closing of two book and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred other restructuring charges, including lease termination and other facility closure costs of $22.2 million, of which $15.8 million related to multi-employer pension plan partial withdrawal charges primarily related to the closing of three manufacturing facilities, and $24.3 million of impairment charges primarily for machinery and equipment and leasehold improvements associated with the announced facility closings.

Restructuring charges for the three months ended June 30, 2010 included $6.1 million for workforce reductions of 412 employees (all of whom were terminated as of June 30, 2011) associated with actions resulting from the reorganization of certain operations. These charges primarily related to the reorganization of certain operations within the business process outsourcing and Latin America reporting units within the International segment and the reorganization of certain operations within the magazine, catalog and retail insert reporting unit within the U.S. Print and Related Services segment. In addition, the Company recorded $3.1 million of other restructuring costs, including lease termination and other facility closure costs, as well as $1.5 million of impairment charges of other long-lived assets. Management believes that certain restructuring activities will continue throughout the remainder of 2011, as the Company continues to integrate Bowne and streamline the manufacturing, sales and administrative operations. Restructuring activities related to Bowne are expected to benefit selling, general and administrative expenses and cost of sales in future periods.

Depreciation and amortization increased $5.9 million to $140.7 million for the three months ended June 30, 2011 compared to the same period in 2010, primarily due to higher amortization expense associated with customer relationship intangible assets resulting from the acquisition of Bowne. Depreciation and amortization included $28.8 million and $24.3 million of amortization of purchased intangibles related to customer relationships, patents, trade names, licenses and non-compete agreements for the three months ended June 30, 2011 and 2010, respectively.

Income from operations for the three months ended June 30, 2011 was $116.1 million, a decrease of 33.8% compared to the three months ended June 30, 2010. The decrease was primarily driven by higher restructuring and impairment charges, continued price pressure and higher pension and other benefits-related expenses, partially offset by higher volume, primarily related to the Bowne acquisition, procurement savings and benefits achieved from restructuring activities.

Net interest expense increased by $8.5 million for the three months ended June 30, 2011 versus the same period in 2010, primarily due to the issuance of $400 million of 7.625% senior notes on June 21, 2010 and $600 million of 7.25% senior notes on June 1, 2011, partially offset by the repayment of $325.7 million of 4.95% senior notes that matured on May 15, 2010. Additionally, net interest expense increased due to borrowings under the Credit Agreement used to finance the Company’s accelerated share repurchase.

Net investment and other income (expense) for the three months ended June 30, 2011 and 2010 was income of $10.0 million and expense of $0.8 million, respectively. The three months ended June 30, 2011 included a $10.0 million gain recognized on the acquisition of Helium, in which the Company previously held an equity investment.

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Loss on debt extinguishment for the three months ended June 30, 2011 was $68.6 million. The loss was due to the repurchases of $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015.

The effective income tax rate for the three months ended June 30, 2011 was a benefit of 428.9% compared to a provision of 26.5% for the same period in 2010. The rate in 2011 reflects the release of reserves due to the resolution of certain state audits within the U.S. Print and Related Services segment and the release of valuation allowances on certain deferred tax assets within the U.S. Print and Related Services segment and the Europe reporting unit within the International segment. The 2010 tax rate reflects the release of a valuation allowance on deferred tax assets due to the forecasted increase in net earnings for certain operations within the Latin America reporting unit within the International segment.

Net earnings attributable to RR Donnelley common shareholders for the three months ended June 30, 2011 was $12.2 million, or $0.06 per diluted share, compared to $88.8 million, or $0.42 per diluted share, for the three months ended June 30, 2010. In addition to the factors described above, the per share results reflect a decrease in weighted average diluted shares outstanding of 10.4 million due to the repurchase of the Company’s shares during the three months ended June 30, 2011, as a result of the accelerated share repurchase.

U.S. Print and Related Services

The following table summarizes net sales, income from operations and certain items impacting comparability within the U.S. Print and Related Services segment:

	Three Months Ended June 30,
	2011			2010
	(in millions)
Net sales	$	1,920.9		$	1,809.3
Income from operations		132.8			179.5
Operating margin		6.9	%		9.9	%
Restructuring and impairment charges		65.1			3.5

	Net Sales for the Three Months Ended June 30,
Reporting unit	2011		2010		$ Change			% Change
	(in millions)
Magazines, catalogs and retail inserts	$	442.4	$	443.0	$	(0.6	)		(0.1	%)
Books and directories		312.4		370.0		(57.6	)		(15.6	%)
Financial print		283.7		153.3		130.4			85.1	%
Variable print		282.3		269.6		12.7			4.7	%
Forms and labels		193.6		199.3		(5.7	)		(2.9	%)
Logistics		162.5		141.5		21.0			14.8	%
Commercial		156.1		143.9		12.2			8.5	%
Office products		52.9		51.6		1.3			2.5	%
Premedia		35.0		37.1		(2.1	)		(5.7	%)
Total U.S. Print and Related Services	$	1,920.9	$	1,809.3	$	111.6			6.2	%

Net sales for the U.S. Print and Related Services segment for the three months ended June 30, 2011 were $1,920.9 million, an increase of $111.6 million, or 6.2%, compared to the same period in 2010. Net sales increased due to the acquisition of Bowne, higher commercial and logistics volumes, as well as higher volume in capital market transactions. These increases were partially offset by lower volume and continued price pressures in both books and directories. An analysis of net sales by reporting unit follows:

• Magazines, catalogs and retail inserts: Sales remained relatively constant with continued price pressures and lower volume, partially offset by higher pass-through paper sales.

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• Books and directories: Sales decreased primarily as a result of lower volume in consumer books, educational books and directories and decreases in pass-through paper sales in directories. The decrease in the volume of consumer books is due to the increasing popularity of e-books, a decline in popular titles and the bankruptcy of a large bookstore chain, while the decrease in the volume of educational books is due primarily to the timing of state funding.

• Financial print: Sales increased as a result of the acquisition of Bowne and higher volume in capital market transactions, partially offset by lower investment management volume.

• Variable print: Sales increased as a result of the acquisition of Bowne, partially offset by lower statement printing volume and reduction in pass-through postage sales.

• Forms and labels: Sales decreased due to continued price pressure on both forms and labels and lower forms volume, partially offset by increased volume in labels.

• Logistics: Sales increased due to higher fuel surcharges and higher print and other logistics services volumes, as well as growth in mail center and commingling services.

• Commercial: Sales increased due to higher volume from new customers, partially offset by increased price pressure.

• Office products: Sales increased due to new business from existing customers, partially offset by overall lower volume and price pressures.

• Premedia: Sales decreased primarily due to lower pricing, partially offset by new customer volume.

U.S. Print and Related Services segment income from operations decreased $46.7 million for the three months ended June 30, 2011 mainly driven by higher restructuring and impairment charges, which were partially offset by the acquisition of Bowne. Operating margins in the U.S. Print and Related Services segment decreased from 9.9% for the three months ended June 30, 2010 to 6.9% for the three months ended June 30, 2011, substantially all of which was attributable to higher restructuring and impairment charges.

International

The following table summarizes net sales, income from operations and certain items impacting comparability within the International segment:

	Three Months Ended June  30,
	2011			2010
	(in millions)
Net sales	$	702.5		$	599.3
Income from operations		43.6			42.7
Operating margin		6.2	%		7.1	%
Restructuring and impairment charges		9.8			6.5

	Net Sales for the Three Months Ended June 30,
Reporting unit	2011		2010		$ Change			% Change
	(in millions)
Asia	$	158.1	$	138.9	$	19.2			13.8	%
Business process outsourcing		140.8		131.2		9.6			7.3	%
Latin America		127.1		104.8		22.3			21.3	%
Europe		123.1		90.9		32.2			35.4	%
Global Turnkey Solutions		74.8		77.3		(2.5	)		(3.2	%)
Canada		78.6		56.2		22.4			39.9	%
Total International	$	702.5	$	599.3	$	103.2			17.2	%

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Net sales for the International segment for the three months ended June 30, 2011 were $702.5 million, an increase of $103.2 million, or 17.2%, compared to the same period in 2010. This increase was primarily due to changes in foreign exchange rates of $45.8 million, or 7.6%, increased business in Latin America and Asia, higher pass-through paper sales in Europe and the acquisition of Bowne. An analysis of net sales by reporting unit follows:

• Asia: Sales increased due to higher volume from technology manuals and packaging products, partially offset by continued price pressures and lower volume of books exported to the U.S. and Europe.

• Business process outsourcing: Sales increased due to changes in foreign exchange rates and increased volume from new and existing customers, partially offset by expiring contracts.

• Latin America: Sales increased due to higher commercial print volumes in Argentina, Chile and Mexico, increased sales of books in Brazil and changes in foreign exchange rates, partially offset by the continued decline in forms volume in Brazil.

• Europe: Sales increased due to changes in foreign exchange rates, higher pass-through paper sales, increased publishing and other packaging products volume and the acquisition of Bowne, partially offset by declining prices.

• Global Turnkey Solutions: Sales decreased due to lower volume from one existing customer and an expiring contract, partially offset by changes in foreign exchange rates.

• Canada: Sales increased due to the acquisition of Bowne, changes in foreign exchange rates and higher commercial and statement printing volume.

Income from operations increased $0.9 million primarily due to increased business in Latin America and the acquisition of Bowne. Operating margins as a percentage of sales decreased from 7.1% to 6.2% for the three months ended June 30, 2011, primarily due to lower prices and higher restructuring and impairment charges.

Corporate

Corporate operating expenses in the three months ended June 30, 2011 were $60.3 million, an increase of $13.4 million compared to the same period in 2010. The increase was driven by higher pension and other benefits-related expenses, higher workers’ compensation expense and the acquisition of Bowne, partially offset by lower acquisition costs.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2011 AS

COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2010

The following table shows the results of operations for the six months ended June 30, 2011 and 2010:

	Six Months Ended June 30,
	2011		2010		$ Change			% Change
			(in millions)
Net sales
Products	$	4,623.3	$	4,328.3	$	295.0			6.8	%
Services		583.6		495.4		88.2			17.8	%
Total net sales		5,206.9		4,823.7		383.2			7.9	%
Products cost of sales (exclusive of depreciation and amortization shown below)		3,504.0		3,296.9		207.1			6.3	%
Services cost of sales (exclusive of depreciation and amortization shown below)		433.8		364.4		69.4			19.0	%
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below)		636.2		541.7		94.5			17.4	%
Restructuring and impairment charges		126.5		26.2		100.3			382.8	%
Depreciation and amortization		280.9		273.4		7.5			2.7	%
Total operating expenses		4,981.4		4,502.6		478.8			10.6	%
Income from operations	$	225.5	$	321.1	$	(95.6	)		(29.8	%)

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Consolidated

Net sales of products for the six months ended June 30, 2011 increased $295.0 million, or 6.8%, to $4,623.3 million versus the same period in the prior year. Changes in foreign exchange rates increased net sales by $55.3 million, or 1.3%. Net sales of products also increased due to the acquisition of Bowne, higher volume driven by increased business in Asia, Latin America and Europe, increases in pass-through paper sales and higher volume in capital market transactions. These increases were partially offset by decreases in net sales primarily attributable to the production and distribution of materials for the U.S. Census in 2010, decreases in volume within the books and directories and variable print reporting units, as well as continued price pressures.

Net sales from services for the six months ended June 30, 2011 increased $88.2 million, or 17.8%, to $583.6 million versus the same period in the prior year. Net sales from services increased due to the acquisition of Bowne and higher logistics volumes, driven in part by higher print and other logistics services, along with growth in mail center and commingling services. Additionally, net sales increased due to changes in foreign exchange rates of $6.1 million, or 1.2%.

Products cost of sales increased $207.1 million to $3,504.0 million for the six months ended June 30, 2011 versus the same period in the prior year primarily due to the acquisition of Bowne, increased volume in capital market transactions and higher pricing on materials. Products cost of sales as a percentage of products net sales decreased from 76.2% to 75.8%, reflecting continued productivity efforts and a higher recovery on print-related by-products, partially offset by continued price pressures.

Services cost of sales increased $69.4 million to $433.8 million for the six months ended June 30, 2011 versus the same period in the prior year primarily due to the acquisition of Bowne and higher logistics volume. Services cost of sales as a percentage of net sales increased from 73.6% to 74.3%, reflecting an increase in logistics costs of transportation and an unfavorable mix in compliance services in the financial print reporting unit.

Selling, general and administrative expenses increased $94.5 million to $636.2 million for the six months ended June 30, 2011 versus the same period in the prior year due to the acquisition of Bowne and higher pension and other benefits-related expenses, partially offset by cost savings from restructuring activities. Selling, general and administrative expenses as a percentage of consolidated net sales increased from 11.2% to 12.2%, reflecting the acquisition of Bowne and increased pension and other benefits-related expenses.

For the six months ended June 30, 2011, the Company recorded net restructuring and impairment charges of $126.5 million compared to $26.2 million in the same period of 2010. In 2011, these charges included $54.0 million for workforce reductions of 1,859 employees (of whom 1,106 were terminated as of June 30, 2011) associated with actions resulting from the reorganization of certain operations. These charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as the closing of three book and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred other restructuring charges, including lease termination and other facility closure costs of $40.1 million, of which $15.8 million related to multi-employer pension plan partial withdrawal charges primarily related to the closing of three manufacturing facilities, and $32.4 million of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings.

Restructuring charges for the six months ended June 30, 2010 included $15.3 million for workforce reductions of 851 employees (all of whom were terminated as of June 30, 2011) associated with actions resulting from the reorganization of certain operations. These actions included the reorganization of certain operations within the business process outsourcing and Latin America reporting units and the continuing charges resulting from the closing of two Global Turnkey Solutions manufacturing facilities in 2009 within the International segment. These actions also included the reorganization of certain operations within the magazine, catalog and retail insert and variable print reporting units and the closing of one forms and labels manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company recorded $8.4 million of other restructuring costs, including lease termination and other facility closure costs and $2.5 million of impairment

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charges of other long-lived assets. Management believes that certain restructuring activities will continue throughout the remainder of 2011, as the Company continues to integrate Bowne and streamline the manufacturing, sales and administrative operations. Restructuring activities related to Bowne are expected to benefit selling, general and administrative expenses and cost of sales in future periods.

Depreciation and amortization increased $7.5 million to $280.9 million for the six months ended June 30, 2011 compared to the same period in 2010, primarily due to higher amortization expense associated with customer relationship intangible assets resulting from the acquisition of Bowne, partially offset by the impact of lower capital spending in recent years compared to historical levels. Depreciation and amortization included $57.3 million and $49.0 million of amortization of purchased intangibles related to customer relationships, patents, trade names, licenses and non-compete agreements for the six months ended June 30, 2011 and 2010, respectively.

Income from operations for the six months ended June 30, 2011 was $225.5 million, a decrease of 29.8% compared to the six months ended June 30, 2010. The decrease was primarily driven by higher restructuring and impairment charges in 2011, continued price pressure and higher pension and other benefits-related expenses, partially offset by higher volume, primarily related to the Bowne acquisition, procurement savings and benefits achieved from restructuring activities.

Net interest expense increased by $10.7 million for the six months ended June 30, 2011 versus the same period in 2010, primarily due to the issuance of $400 million of 7.625% senior notes on June 21, 2010 and $600 million of 7.25% senior notes on June 1, 2011, partially offset by the repayment of $325.7 million of 4.95% senior notes that matured on May 15, 2010. Additionally, net interest expense increased due to borrowings under the Credit Agreement used to finance the Company’s accelerated share repurchase.

Net investment and other income (expense) for the six months ended June 30, 2011 and 2010 was income of $9.8 million and expense of $9.8 million, respectively. The six months ended June 30, 2011 included a $10.0 million gain recognized on the acquisition of Helium, in which the Company previously held an equity investment. For the six months ended June 30, 2010, the Company recorded an $8.9 million loss related to the devaluation of the Venezuelan currency, of which $3.6 million increased the loss attributable to noncontrolling interests.

Loss on debt extinguishment for the six months ended June 30, 2011 was $68.6 million. The loss was due to the repurchases of $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015.

The effective income tax rate for the six months ended June 30, 2011 was 1.5% compared to 31.9% in the same period of 2010. The lower effective tax rate in 2011 reflects the release of reserves due to the resolution of certain state audits within the U.S. Print and Related Services segment and the release of valuation allowances on certain deferred tax assets within the U.S. Print and Related Services segment and the Europe reporting unit within the International segment. The 2010 tax rate reflects the release of a valuation allowance on deferred tax assets due to the forecasted increase in net earnings for certain operations within the Latin America reporting unit within the International segment.

Income (loss) attributable to noncontrolling interests was income of $0.7 million for the six months ended June 30, 2011 and a loss of $3.2 million for the six months ended June 30, 2010. The loss in 2010 as compared to income in 2011 primarily reflects the impact of the 2010 currency devaluation in Venezuela.

Net earnings attributable to RR Donnelley common shareholders for the six months ended June 30, 2011 was $46.1 million, or $0.23 per diluted share, compared to $141.4 million, or $0.68 per diluted share, for the six months ended June 30, 2010. In addition to the factors described above, the per share results reflect a decrease in weighted average diluted shares outstanding of 4.9 million due to the purchase of shares during the six months ended June 30, 2011 as a result of the accelerated share repurchase.

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U.S. Print and Related Services

The following table summarizes net sales, income from operations and certain items impacting comparability within the U.S. Print and Related Services segment:

	Six Months Ended June 30,
	2011			2010
	(in millions)
Net sales	$	3,862.0		$	3,646.1
Income from operations		274.7			343.3
Operating margin		7.1	%		9.4	%
Restructuring and impairment charges		103.3			9.4

	Net Sales for the Six Months Ended June 30,
Reporting unit	2011		2010		$ Change			% Change
	(in millions)
Magazines, catalogs and retail inserts	$	900.4	$	897.8	$	2.6			0.3	%
Books and directories		629.1		698.6		(69.5	)		(9.9	%)
Variable print		597.3		610.9		(13.6	)		(2.2	%)
Financial print		524.5		278.8		245.7			88.1	%
Forms and labels		392.9		405.8		(12.9	)		(3.2	%)
Logistics		323.9		277.6		46.3			16.7	%
Commercial		310.3		291.1		19.2			6.6	%
Office products		110.6		111.5		(0.9	)		(0.8	%)
Premedia		73.0		74.0		(1.0	)		(1.4	%)
Total U.S. Print and Related Services	$	3,862.0	$	3,646.1	$	215.9			5.9	%

Net sales for the U.S. Print and Related Services segment for the six months ended June 30, 2011 were $3,862.0 million, an increase of $215.9 million, or 5.9%, compared to the same period in 2010. Net sales increased due to the acquisition of Bowne and higher logistics and commercial volumes, as well as higher volume in capital market transactions. The increases not related to the Bowne acquisition were more than offset by the production and distribution of materials for the U.S. Census in 2010, as well as continued lower volume and price pressures in both books and directories. An analysis of net sales by reporting unit follows:

• Magazines, catalogs and retail inserts: Sales remained relatively constant with higher pass-through paper sales partially offset by continued price pressures and lower volume.

• Books and directories: Sales decreased primarily as a result of lower volume in consumer books, educational books and directories, as well as lower pass-through paper sales in directories. The decrease in the volume of consumer books is due to the increasing popularity of e-books, a decline in popular titles and the bankruptcy of a large bookstore chain, while the decrease in the volume of educational books is due primarily to the timing of state funding.

• Variable print: Sales decreased as a result of the production and distribution of materials for the U.S. Census in 2010, lower statement printing volume and reduction in pass-through postage sales, partially offset by the acquisition of Bowne and higher direct mailings from financial services customers.

• Financial print: Sales increased as a result of the Bowne acquisition and higher volume in capital market transactions, partially offset by lower investment management and compliance volume.

• Forms and labels: Sales decreased due to continued price pressure on both forms and labels and lower forms volume, partially offset by increased volume in labels.

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• Logistics: Sales increased primarily due to higher print and other logistics services volumes along with higher fuel surcharges, as well as growth in mail center and commingling services.

• Commercial: Sales increased due to higher volume from new customers, partially offset by increased price pressure.

• Office products: Sales decreased due to lower volume and unfavorable mix, partially offset by new business from existing customers.

• Premedia: Sales decreased due to lower pricing, partially offset by volume from new customers and higher volume from existing customers.

Income from operations decreased $68.6 million for the six months ended June 30, 2011 mainly driven by higher restructuring and impairment charges, continued price pressures, and lower volumes in the books and directories and variable print reporting units, partially offset by the acquisition of Bowne. Operating margins in the U.S. Print and Related Services segment decreased from 9.4% for the six months ended June 30, 2010 to 7.1% for the six months ended June 30, 2011, substantially all of which was attributable to higher restructuring and impairment charges.

International

The following table summarizes net sales, income from operations and certain items impacting comparability within the International segment:

	Six Months Ended June 30,
	2011			2010
	(in millions)
Net sales	$	1,344.9		$	1,177.6
Income from continuing operations		87.7			76.4
Operating margin		6.5	%		6.5	%
Restructuring and impairment charges		19.0			16.0

	Net Sales for the Six Months Ended June 30,
Reporting unit	2011		2010		$ Change			% Change
			(in millions)
Asia	$	294.0	$	237.3	$	56.7			23.9	%
Business process outsourcing		275.8		279.5		(3.7	)		(1.3	%)
Latin America		239.7		202.7		37.0			18.3	%
Europe		237.2		186.8		50.4			27.0	%
Global Turnkey Solutions		149.4		159.4		(10.0	)		(6.3	%)
Canada		148.8		111.9		36.9			33.0	%
Total International	$	1,344.9	$	1,177.6	$	167.3			14.2	%

Net sales for the International segment for the six months ended June 30, 2011 were $1,344.9 million, an increase of $167.3 million, or 14.2%, compared to the same period in 2010. The net sales increase was due to increased business in Asia, Latin America and Europe, changes in foreign exchange rates of $61.0 million, or 5.2%, and the acquisition of Bowne. An analysis of net sales by reporting unit follows:

• Asia: Sales increased due to higher volume of books exported to the U.S. and Europe, higher domestic sales of catalogs and retail inserts and increased volume from technology manuals and packaging products, partially offset by continued price pressures.

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• Business process outsourcing: Sales decreased due to lower direct mailings, lower pass-through sales and expiring contracts, partially offset by changes in foreign exchange rates.

• Latin America: Sales increased due to higher commercial print volumes in Argentina, Chile and Mexico, increased sales of books in Brazil and Chile and changes in foreign exchange rates, partially offset by the continued decline in forms volumes in Brazil.

• Europe: Sales increased due to changes in foreign exchange rates, higher pass-through paper sales, increased commercial print and other packaging products volume, as well as the acquisition of Bowne, partially offset by declining prices and lower directories volume.

• Global Turnkey Solutions: Sales decreased due to lower volume from one existing customer and an expiring contract, partially offset by volume increases across the rest of the reporting unit.

• Canada: Sales increased due to the acquisition of Bowne and changes in foreign exchange rates, partially offset by lower forms volume.

Income from operations increased $11.3 million for the six months ended June 30, 2011, primarily due to increased business in Latin America, Asia and Europe, as well as the acquisition of Bowne, partially offset by continued price pressure. Operating margins as a percentage of sales remained constant at 6.5% for the six months ended June 30, 2011 and June 30, 2010. The increase from higher volumes was offset by lower prices.

Corporate

Corporate operating expenses in the six months ended June 30, 2011 were $136.9 million, an increase of $38.3 million compared to the same period in 2010. The increase was driven by higher pension and other benefits-related expenses, higher workers’ compensation expense, an increase in information technology spending, the acquisition of Bowne and higher restructuring and impairment, partially offset by lower acquisition costs.

LIQUIDITY AND CAPITAL RESOURCES

The following describes the Company’s cash flows for the six months ended June 30, 2011 and 2010.

Cash Flows From Operating Activities

Operating cash inflows are largely attributable to sales of the Company’s products and services. Operating cash outflows are largely attributable to recurring expenditures for raw materials, labor, rent, interest, taxes and other operating activities.

Net cash provided by operating activities was $168.1 million for the six months ended June 30, 2011, compared to $269.1 million for the same period last year. The decrease in operating cash flow reflects significantly higher incentive compensation payments in the first quarter of 2011 (for 2010 incentives) compared to 2010 (for 2009 incentives) due to better operating results in 2010 as compared to the operating results in 2009. Additionally, the payments in 2010 were under the 2009 incentive compensation plan, which deferred payments equally over four years, while the 2010 plan was fully paid in 2011. Further decreases were due to restructuring and pension payments related to the Bowne acquisition, increases in working capital associated with higher volume in the International segment and higher interest payments primarily related to the June 2010 issuance of $400.0 million of long-term senior notes. These decreases were partially offset by the $57.5 million payment in January 2010 related to the termination of the long-term customer contract in 2009 and lower income tax payments.

Cash Flows From Investing Activities

Net cash used in investing activities for the six months ended June 30, 2011 was $208.4 million compared to $102.0 million for the six months ended June 30, 2010. Net cash used for acquisitions included $75.5 million for

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the acquisitions of Helium and Journalism Online during the six months ended June 30, 2011. The Company also used $7.0 million to purchase a long-term investment during the six months ended June 30, 2011. For the six months ended June 30, 2010, the Company used $12.0 million to purchase a long-term investment and $11.7 million to purchase a short-term deposit. The short-term deposit was subsequently liquidated for $11.9 million during the six months ended June 30, 2010. Capital expenditures for the six months ended June 30, 2011 were $128.2 million, an increase of $33.7 million compared to the first six months of 2010. The Company expects that capital expenditures for 2011 will be approximately $250 million to $275 million compared to $229.4 million in 2010.

Cash Flows From Financing Activities

Net cash used in financing activities for the six months ended June 30, 2011 was $134.4 million compared to $35.3 million in the same period of 2010. During the six months ended June 30, 2011, the Company received proceeds from the issuance of $600.0 million of long-term senior notes, as well as $355.0 million from net borrowings under the Credit Agreement. During the six months ended June 30, 2011, the Company also paid a total of $480.7 million to repurchase senior notes with a face value of $ 416.2 million, maturing February 1, 2019, January 15, 2017 and May 15, 2015. Additionally, the Company paid $500.0 million for the acquisition of the Company’s common stock under its accelerated share repurchase, which was entered into during the second quarter of 2011. For the six months ended June 30, 2010, the Company received proceeds of $400.0 million from the issuance of long-term senior notes which were partly used to repay borrowings on the Company’s previous revolving credit facility. Proceeds from borrowings under that facility in 2010 were used, along with cash on hand, to pay the May 15, 2010 maturity of $325.7 million of senior notes.

Dividends

During the six months ended June 30, 2011, the Company paid cash dividends of $107.7 million. On July 21, 2011, the Board of Directors of the Company declared a quarterly cash dividend of $0.26 per common share payable on September 1, 2011 to RR Donnelley shareholders of record on August 5, 2011.

LIQUIDITY

The Company believes it has sufficient liquidity to support its ongoing operations and to invest in future growth to create value for its shareholders. Operating cash flows are the Company’s primary source of liquidity and are expected to be used for, among other things, interest and principal on the Company’s debt obligations, capital expenditures as necessary to support productivity improvement and growth, future common stock or debt repurchases based upon market conditions, completion of restructuring programs, dividend payments that may be approved by the Board of Directors and acquisitions.

Cash and cash equivalents of $363.0 million as of June 30, 2011 included $40.7 million in the U.S. and $322.3 million at international locations, most of which is subject to U.S. federal income taxes and some of which could be subject to local country taxes if repatriated to the U.S. In addition, repatriation of some foreign cash is further restricted by local laws. The Company maintains a cash pooling structure that enables participating international locations to draw on the Company’s overseas cash resources to meet local liquidity needs. In addition, foreign cash balances may be loaned to U.S. operating entities on a temporary basis in order to reduce the Company’s short-term borrowing costs or for other purposes.

The Company has a $1.75 billion revolving Credit Agreement which expires December 17, 2013, subject to a possible one-year extension if agreed to by the lending institutions. Borrowings under the Credit Agreement bear interest at a rate dependent on the Company’s credit ratings at the time of borrowing and will be calculated according to a base or Eurocurrency rate plus an applicable margin. The Company pays annual commitment fees at rates dependent on the Company’s credit ratings. The Credit Agreement can be used for general corporate purposes, including letters of credit. The Credit Agreement is subject to a number of financial covenants that, in part, may limit the use of proceeds, and the ability of the Company to create liens on assets, incur subsidiary

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debt, engage in mergers and consolidations, or dispose of assets. The financial covenants require a minimum interest coverage ratio and a maximum leverage ratio, both to be computed on a pro forma basis as defined in the Credit Agreement. Based on the Company’s results of operations for the twelve months ended June 30, 2011 and existing term debt structure, the Company could utilize an additional $921.5 million of the $1.75 billion Credit Agreement and not be in violation of those financial covenants, as shown in the table below. However, the Company does not expect the reduction in availability on the Credit Agreement to impact its ability to meet its liquidity requirements. As of June 30, 2011, there were $475.0 million of borrowings outstanding under the Credit Agreement. The current availability under the Credit Agreement is shown in the following table:

	June 30, 2011
Availability	(in millions)
Committed credit facility	$	1,750.0
Availability reduction from covenants		353.5
		1,396.5
Usage
Borrowings under the committed credit facility		475.0
		475.0
Current availability at June 30, 2011	$	921.5

The Company was in compliance with its debt covenants as of June 30, 2011, and expects to remain in compliance based on management’s estimates of operating and financial results for 2011 and the foreseeable future. In addition, the Company met all the conditions required to borrow under the Credit Agreement as of June 30, 2011 and management expects the Company to continue to meet the applicable borrowing conditions.

The Company also has $148.3 million in credit facilities outside of the U.S., most of which are uncommitted. As of June 30, 2011, the Company had $61.8 million in outstanding letters of credit. The failure of a financial institution supporting the Credit Agreement would reduce the size of our committed facility unless a replacement institution was added. Currently, the Credit Agreement is supported by 21 U.S. and international financial institutions.

On May 4, 2011, Standard & Poor’s Ratings Services lowered the Company’s long-term corporate credit and senior unsecured debt ratings from BBB with a negative outlook to BBB- and placed the Company on CreditWatch with negative implications. Subsequently, on May 16, 2011, Standard & Poor’s Ratings Services lowered the Company’s long-term corporate credit and senior unsecured debt ratings from BBB- to BB+ with a stable outlook and the Company’s short-term credit rating from A-3 to B-1.

On May 4, 2011, Moody’s Investors Service placed the Company’s Baa3 credit rating with a stable outlook on review for possible downgrade. Subsequently on May 16, 2011, Moody’s Investors Service lowered the Company’s senior unsecured debt ratings from Baa3 to Ba1 with a stable outlook and short-term credit rating from P-3 to SGL-1. As a result of the downgrades by the rating agencies, the interest rate on the Company’s 11.25% senior notes due February 1, 2019 was increased to 11.75%. Additionally, the downgrades in ratings increased annual commitment fees and interest rates incurred on borrowings under the Credit Agreement.

On June 21, 2011, the Company paid $55.9 million, net of cash acquired, to purchase the remaining equity of Helium. The Company financed the acquisition with cash on hand.

On March 24, 2011, the Company paid $19.6 million, net of cash acquired, to purchase Journalism Online. The Company financed the acquisition with cash on hand.

On June 1, 2011, the Company issued $600 million of 7.25% senior notes due May 15, 2018. The Company used the net proceeds from the offering to repurchase $216.2 million of the senior notes due February 1, 2019,

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$100 million of the senior notes due January 15, 2017 and $100 million of the senior notes due May 15, 2015. The remaining net proceeds were used for general corporate purposes, as well as to repay outstanding borrowings under the Credit Agreement.

On May 3, 2011, the Board of Directors of the Company approved a program that authorizes the repurchase of up to $1.0 billion of the Company’s common stock through December 31, 2012. Share repurchases under the program may be made from time to time through a variety of methods as determined by the Company’s management. The repurchase authorizations do not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase and may be modified, suspended or terminated at any time at the Company’s discretion. The Company terminated its existing authorization of October 29, 2008 for the repurchase of up to 10 million shares of the Company’s common stock.

As part of the share repurchase program, on May 5, 2011 the Company entered into an ASR with an investment bank under which the Company agreed to repurchase $500 million of its common stock. On May 10, 2011 the Company paid the $500 million purchase price and received an initial delivery of 19.9 million shares from the investment bank subject to a 20%, or $100 million, holdback. At the conclusion of the ASR, the Company may receive additional shares or be required to pay additional cash or deliver shares (at the Company’s option) based upon the volume weighted average price of the Company’s common stock (subject to a discount agreed upon with the investment bank) over an averaging period, which is expected to end around the end of the year. The investment bank will deliver any remaining shares to the Company shortly after the end of the averaging period.

The ASR was accounted for as an initial stock purchase transaction and a forward stock purchase contract. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net earnings per share from the effective date of the ASR. The forward stock purchase contract is classified as an equity instrument.

As of June 30, 2011, based on the volume weighted average price of the Company’s common stock since the effective date of the ASR, $20.07, the investment bank would be required to deliver an additional 5.0 million shares to the Company. Increases in the volume weighted average price of the Company’s common stock over the averaging period would decrease the number of shares the investment bank would be required to deliver, or increase the amount of cash or number of shares the Company would be required to deliver to the investment bank. Decreases in the volume weighted average price of the Company’s common stock over the averaging period would increase the number of shares the investment bank would be required to deliver to the Company. As of June 30, 2011, the $100 million holdback was recorded as a reduction in additional paid-in capital in the Condensed Consolidated Balance Sheet.

RISK MANAGEMENT

The Company is exposed to interest rate risk on its variable debt and price risk on its fixed-rate debt. As of June 30, 2011, approximately 73.2% of the Company’s outstanding term debt was comprised of fixed-rate debt. At June 30, 2011, the Company’s exposure to rate fluctuations on variable-interest borrowings was $1,091.9 million, including $600 million notional value of interest rate swap agreements (See Note 15, Derivatives, to the Condensed Consolidated Financial Statements) and $491.9 million in borrowings under the Credit Agreement, international credit facilities and other long-term debt.

The Company assesses market risk based on changes in interest rates utilizing a sensitivity analysis that measures the potential loss in earnings, fair values and cash flows based on a hypothetical 10% change in interest rates. Using this sensitivity analysis, such changes would not have a material effect on interest income or expense and cash flows; and would change the fair values of fixed rate debt at June 30, 2011 and December 31, 2010 by approximately $117.2 million and $101.8 million, respectively.

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The Company is exposed to the impact of foreign currency fluctuations in certain countries in which it operates. The exposure to foreign currency movements is limited in most countries because the operating revenues and expenses of its various subsidiaries and business units are substantially in the local currency of the country in which they operate. To the extent that borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the operating unit, the Company is exposed to currency risk and may enter into foreign exchange forward contracts to hedge the currency risk. As of June 30, 2011, the aggregate notional amount of outstanding foreign exchange forward contracts was approximately $102.5 million. Net unrealized losses from these foreign exchange forward contracts were less than $0.1 million at June 30, 2011. The Company does not use derivative financial instruments for trading or speculative purposes.

CAUTIONARY STATEMENT

We have made forward-looking statements in this Quarterly Report on Form 10-Q that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of the Company. Generally, forward-looking statements include information concerning possible or assumed future actions, events, or results of operations of the Company.

These statements may include, or be preceded or followed by, the words “may,” “will,” “should,” “might,” “could,” “would,” “potential,” “possible,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “hope” or similar expressions. The Company claims the protection of the Safe Harbor for Forward-Looking Statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements.

Forward-looking statements are not guarantees of performance. The following important factors, in addition to those discussed elsewhere in this Form 10-Q, could affect the future results of the Company and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:

• the volatility and disruption of the capital and credit markets, and adverse changes in the global economy;

• successful execution and integration of acquisitions, including the integration of Bowne;

• successful negotiation of future acquisitions; and the ability of the Company to integrate operations successfully and achieve enhanced earnings or effect cost savings;

• the ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, system integration and other key strategies;

• the ability to divest non-core businesses;

• future growth rates in the Company’s core businesses;

• competitive pressures in all markets in which the Company operates;

• the Company’s ability to access unsecured debt in the capital markets and the participants’ ability to perform to our contractual lending and insurance agreements;

• changes in technology, including the electronic substitution and migration of paper based documents to digital data formats;

• factors that affect customer demand, including changes in postal rates and postal regulations, changes in the capital markets, changes in advertising markets, customers’ budgetary constraints and changes in customers’ short-range and long-range plans;

• the ability to gain customer acceptance of the Company’s new products and technologies;

• the ability to secure and defend intellectual property rights and, when appropriate, license required technology;

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• customer expectations and financial strength;

• performance issues with key suppliers;

• changes in the availability or costs of key materials (such as ink, paper and fuel) or in the prices received for the sale of by-products;

• changes in ratings of the Company’s debt securities;

• the ability to generate cash flow or obtain financing to fund growth;

• the effect of inflation, changes in currency exchange rates and changes in interest rates;

• the effect of changes in laws and regulations, including changes in accounting standards, trade, tax, environmental compliance (including the emission of greenhouse gases and other air pollution controls), health and welfare benefits (including the Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act, and further healthcare reform initiatives), price controls and other regulatory matters and the cost, which could be substantial, of complying with these laws and regulations;

• contingencies related to actual or alleged environmental contamination;

• the retention of existing, and continued attraction of additional, customers and key employees;

• the effect of a material breach of security of any of the Company’s systems;

• the effect of labor disruptions or labor shortages;

• the effect of economic and political conditions on a regional, national or international basis;

• the effect of economic weakness and constrained advertising;

• uncertainty about future economic conditions;

• the possibility of future terrorist activities or the possibility of a future escalation of hostilities in the Middle East or elsewhere;

• the possibility of a regional or global health pandemic outbreak;

• adverse outcomes of pending and threatened litigation; and

• other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including under “Risk Factors” in the Company’s Annual Report on Form 10-K.

Because forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Undue reliance should not be placed on such statements, which speak only as of the date of this document or the date of any document that may be incorporated by reference into this document.

Consequently, readers of this Quarterly Report should consider these forward-looking statements only as our current plans, estimates and beliefs. We do not undertake and specifically decline any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. We undertake no obligation to update or revise any forward-looking statements in this Quarterly Report to reflect any new events or any change in conditions or circumstances.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Item 2 of Part I under “Liquidity and Capital Resources.”

Item 4. Controls and Procedures

(a) Disclosure controls and procedures.

As required by Rule 13a-15(b) and Rule 15d-15(e) of the Securities Exchange Act of 1934, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of June 30, 2011, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures as of June 30, 2011 were effective in ensuring information required to be disclosed in this Quarterly Report was recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting.

There have not been any changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) that occurred during the quarter ended June 30, 2011 that had materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

49

PART II—OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total Number of Shares Purchased(1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced  Plans or Programs(2)		Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
April 1, 2011—April 30, 2011		102	$	19.01		—	$	188,600,000
May 1, 2011—May 31, 2011		20,013,677		20.06		19,940,179	$	600,000,000
June 1, 2011—June 30, 2011		—		—		—	$	600,000,000
Total		20,013,779	$	20.06		19,940,179

On May 3, 2011, the Board of Directors of the Company approved a program that authorizes the repurchase of up to $1.0 billion of the Company’s common stock through December 31, 2012. Share repurchases under the program may be made from time to time and can be discontinued at any time. Also on May 3, 2011, the Company terminated its existing authorization of October 29, 2008 for the repurchase of up to 10 million shares (or $188.6 million based on the April 30, 2011 closing stock price) of the Company’s common stock.

(1) In addition to the shares purchased as part of the publicly announced share repurchase program, these shares include the shares withheld for tax liabilities upon vesting of certain equity awards. The Company acquired 73,600 shares for tax withholdings upon vesting of restricted stock awards which were not repurchased pursuant to a share repurchase program.

(2) As part of the share repurchase program (referred to above), on May 5, 2011, the Company entered into an ASR with an investment bank under which the Company agreed to repurchase $500 million of its common stock. On May 10, 2011, the Company paid the $500 million purchase price and received an initial delivery of 19.9 million shares from the investment bank subject to a 20%, or $100 million, holdback. At the conclusion of the ASR, the Company may receive additional shares or be required to pay additional cash or deliver shares (at the Company’s option) based upon the volume weighted average price of the Company’s common stock (subject to a discount agreed upon with the investment bank) over an averaging period, which is expected to end around the end of the year. The investment bank will deliver any remaining shares to the Company shortly after the end of the averaging period.

Item 6. Exhibits

3.1	Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, filed on August 2, 2007)
3.2	By-Laws (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated January 8, 2009, filed on January 13, 2009)
4.1	Instruments, other than those defining the rights of holders of long-term debt not registered under the Securities Exchange Act of 1934 of the registrant and of all subsidiaries for which consolidated or unconsolidated financial statements are required to be filed are being omitted pursuant to paragraph (4)(iii)(A) of Item 601 of Regulation S-K. Registrant agrees to furnish a copy of any such instrument to the Commission upon request.
4.2	Indenture dated as of November 1, 1990 between the Company and Citibank, N.A., as Trustee (incorporated by reference to Exhibit 4 filed with the Company’s Form SE filed on March 26, 1992)
4.3	Indenture dated as of March 10, 2004 between the Company and LaSalle National Bank Association, as Trustee (incorporated by reference to Exhibit 4.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004)

50

4.4	Indenture dated as of May 23, 2005 between the Company and LaSalle Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated May 23, 2005, filed on May 25, 2005)
4.5	Indenture dated as of January 3, 2007 between the Company and LaSalle Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-3 filed on January 3, 2007)
4.6	Credit Agreement dated December 17, 2010 among the Company, the Banks named therein and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K dated December 17, 2010, filed on December 17, 2010)
10.1	Policy on Retirement Benefits, Phantom Stock Grants and Stock Options for Directors (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, filed on August 6, 2008)*
10.2	Non-Employee Director Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed on March 14, 2005)*
10.3	Amended Non-Employee Director Compensation Plan (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, filed on August 2, 2007)*
10.4	Amended Non-Employee Director Compensation Plan (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, filed on August 4, 2010)*
10.5	Amended Non-Employee Director Compensation Plan dated May 21, 2009 (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, filed on August 5, 2009)*
10.6	Directors’ Deferred Compensation Agreement, as amended (incorporated by reference to Exhibit 10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, filed on November 12, 1998)*
10.7	Amended and Restated Non-Qualified Deferred Compensation Plan (incorporated by reference to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, filed on February 27, 2008)*
10.8	2000 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, filed on November 12, 2003)*
10.9	2000 Broad-based Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, filed on November 12, 2003)*
10.10	2004 Performance Incentive Plan (incorporated by reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.11	Amended and Restated R.R. Donnelley & Sons Company Unfunded Supplemental Benefit Plan (incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed on November 3, 2010)*
10.12	Amendment to Amended and Restated R.R. Donnelley & Sons Company Unfunded Supplemental Benefit Plan (incorporated by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed on November 3, 2010)*

51

10.13	Supplemental Executive Retirement Plan for Designated Executives—B (incorporated by reference to Exhibit 10.1 to Moore Wallace Incorporated’s (Commission file number 1-8014) Quarterly Report on Form 10-Q for the quarter ended September 30, 2001, filed on November 14, 2001)*
10.14	2003 Long Term Incentive Plan (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.15	2000 Inducement Option Grant Agreement (incorporated by reference to Exhibit 99.1 to Moore Wallace Incorporated’s (formerly Moore Corporation Limited, Commission file number 1-8014) Registration Statement on Form S-8 filed on February 13, 2003)*
10.16	2003 Inducement Option Grant Agreement (incorporated by reference to Exhibit 4.4 to Moore Wallace Incorporated’s (Commission file number 1-8014) Registration Statement on Form S-8 filed September 29, 2003)*
10.17	Form of Option Agreement for certain executive officers (incorporated by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed on March 14, 2005)*
10.18	Form of Cash Bonus Agreement for certain executive officers (incorporated by reference to Exhibit 10.16 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, filed on May 5, 2010)*
10.19	Form of Restricted Stock Unit Award Agreement for certain executive officers, as amended (incorporated by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.20	Form of Restricted Stock Unit Award Agreement for certain executive officers, as amended (incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.21	Form of Restricted Stock Unit Award Agreement for certain executive officers, as amended (incorporated by reference to Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.22	Form of Restricted Stock Unit Award Agreement for directors (incorporated by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed on March 14, 2005)*
10.23	Form of Restricted Stock Unit Award Agreement for directors (incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, filed on February 27, 2008)*
10.24	Form of Amendment to Director Restricted Stock Unit Awards dated May 21, 2009 (incorporated by reference to Exhibit 10.23 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, filed on August 5, 2009)*
10.25	Form of Amendment to Director Restricted Stock Unit Awards (incorporated by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.26	Form of Restricted Stock Unit Award Agreement for directors (incorporated by reference to Exhibit 10.23 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.27	Form of Director Restricted Stock Unit Awards (incorporated by reference to Exhibit 10.26 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, filed on August 5, 2009)*

52

10.28	Form of Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.28 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed May 4, 2011)*
10.29	Amended and Restated Employment Agreement dated as of November 30, 2008 between the Company and Thomas J. Quinlan, III (incorporated by reference to Exhibit 10.24 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.30	Amended and Restated Employment Agreement dated as of November 30, 2008 between the Company and John R. Paloian (incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.31	Amended and Restated Employment Agreement dated as of November 28, 2008 between the Company and Daniel L. Knotts (incorporated by reference to Exhibit 10.26 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.32	Amended and Restated Employment Agreement dated as of December 18, 2008 between the Company and Suzanne S. Bettman (incorporated by reference to Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.33	Amended and Restated Employment Agreement dated as of December 18, 2008 between the Company and Miles W. McHugh (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 25, 2009)*
10.34	Amended and Restated Employment Agreement dated as of May 3, 2011 between the Company and Daniel N. Leib (incorporated by reference to Exhibit 10.34 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed May 4, 2011)*
10.35	Form of Indemnification Agreement for directors (incorporated by reference to Exhibit. 10.32 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, filed on November 8, 2005)*
10.36	Amended Management By Objective Plan (incorporated by reference to Exhibit 10.34 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed on November 3, 2010)*
10.37	Amended 2009 Management by Objective Plan (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed on February 24, 2010)*
10.38	Confirmation, dated as of May 5, 2011 between J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch, and R.R. Donnelley & Sons Company, together with a Pricing Supplement (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 5, 2011, filed on May 11, 2011)**
14	Code of Ethics (incorporated by reference to Exhibit 14 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed on March 1, 2004)
21	Subsidiaries of the Company (incorporated by reference to Exhibit 21 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, filed on February 22, 2011)
31.1	Certification by Thomas J. Quinlan, III, President and Chief Executive Officer, required by Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934 (filed herewith)

53

31.2	Certification by Daniel N. Leib, Executive Vice President and Chief Financial Officer, required by Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934 (filed herewith)
32.1	Certification by Thomas J. Quinlan, III, President and Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code (filed herewith)
32.2	Certification by Daniel N. Leib, Executive Vice President and Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code (filed herewith)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Management contract or compensatory plan or arrangement.

** The registrant has requested confidential treatment with respect to certain portions of this exhibit pursuant to Rule 24b-2 of the Securities Exchange Act of 1934. Such portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission.

54

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

R.R. DONNELLEY & SONS COMPANY
By:	/S/    DANIEL N. LEIB
	Daniel N. Leib Executive Vice President and Chief Financial Officer
By:	/s/    ANDREW B. COXHEAD
	Andrew B. Coxhead Senior Vice President and Controller (Chief Accounting Officer)

Date: August 3, 2011

55

EX-31.1

EXHIBIT 31.1

Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

of the Securities Exchange Act of 1934

I, Thomas J. Quinlan, III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of R.R. Donnelley & Sons Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosures controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over the financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2011

/s/    THOMAS J. QUINLAN, III

Thomas J. Quinlan, III

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

of the Securities Exchange Act of 1934

I, Daniel N. Leib, certify that:

1. I have reviewed this quarterly report on Form 10-Q of R.R. Donnelley & Sons Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over the financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2011

/s/    Daniel N. Leib

Daniel N. Leib

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)

SECTION 1350, CHAPTER 63 OF TITLE 18

OF THE UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of R. R. Donnelley & Sons Company (the “Company”) on Form 10-Q for the period ending June 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas J. Quinlan, III, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

	/s/    THOMAS J. QUINLAN, III
August 3, 2011	Thomas J. Quinlan, III President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)

SECTION 1350, CHAPTER 63 OF TITLE 18

OF THE UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of R. R. Donnelley & Sons Company (the “Company”) on Form 10-Q for the period ending June 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel N. Leib, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

	/s/    DANIEL N. LEIB
August 3, 2011	Daniel N. Leib Executive Vice President and Chief Financial Officer

XML



Goodwill And Other Intangible Assets (Estimated Annual Amortization Expense Related To Intangible Assets) (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Goodwill And Other Intangible Assets
2011	$ 114.1
2012	101.1
2013	98.4
2014	96.0
2015	88.5
2016 and thereafter	268.4
Total	$ 766.5

XML



Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data	Jun. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Receivables, allowance for doubtful accounts	$ 64.9	$ 71.0
Preferred stock, par value	$ 1	$ 1
Preferred stock, authorized	2,000,000	2,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 1.25	$ 1.25
Common stock, authorized	500,000,000	500,000,000
Common stock, issued	243,000,000	243,000,000
Treasury stock, shares	55,200,000	36,400,000

XML



Condensed Consolidated Statements Of Operations (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Net sales
Products	$ 2,356.9	$ 2,157.4	$ 4,623.3	$ 4,328.3
Services	266.5	251.2	583.6	495.4
Total net sales	2,623.4	2,408.6	5,206.9	4,823.7
Products cost of sales (exclusive of depreciation and amortization shown below)	1,777.2	1,636.1	3,504.0	3,296.9
Services cost of sales (exclusive of depreciation and amortization shown below)	204.4	183.5	433.8	364.4
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below)	309.3	268.2	636.2	541.7
Restructuring and impairment charges-net (Note 6)	75.7	10.7	126.5	26.2
Depreciation and amortization	140.7	134.8	280.9	273.4
Total operating expenses	2,507.3	2,233.3	4,981.4	4,502.6
Income from operations	116.1	175.3	225.5	321.1
Interest expense-net	61.3	52.8	119.2	108.5
Investment and other income (expense)-net	10.0	(0.8)	9.8	(9.8)
Loss on debt extinguishment	(68.6)		(68.6)
Earnings (loss) before income taxes	(3.8)	121.7	47.5	202.8
Income tax expense (benefit)	(16.3)	32.2	0.7	64.6
Net earnings	12.5	89.5	46.8	138.2
Less: Income (loss) attributable to noncontrolling interests	0.3	0.7	0.7	(3.2)
Net earnings attributable to RR Donnelley common shareholders	$ 12.2	$ 88.8	$ 46.1	$ 141.4
Earnings per share attributable to RR Donnelley common shareholders (Note 10):
Basic net earnings per share	$ 0.06	$ 0.43	$ 0.23	$ 0.69
Diluted net earnings per share	$ 0.06	$ 0.42	$ 0.23	$ 0.68
Dividends declared per common share	$ 0.26	$ 0.26	$ 0.52	$ 0.52
Weighted average number of common shares outstanding (Note 10):
Basic	196.7	206.3	201.9	206.0
Diluted	199.5	209.9	204.5	209.4

XML



Derivatives (Fair Value Hedges Pre-Tax Gain (Loss) Related To The Hedged Items Attributable To Changes In The Hedged Benchmark Rate Offsetting Gain Or Loss On Related Interest Rate Swaps) (Details) (Investment And Other Income (Expense) [Member], USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	$ 0.5	$ 1.2	$ 0.7	$ 1.2
Interest Rate Swaps [Member] | Fair Value Hedging [Member]
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	7.2	14.2	3.3	14.2
Hedged Items [Member] | Fair Value Hedging [Member]
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	$ (6.7)	$ (13.0)	$ (2.6)	$ (13.0)

XML



Restructuring And Impairment Charges (Restructuring Reserve) (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Balance at the beginning	$ 54.0
Restructuring Costs Charged to Results of Operations	94.1
Foreign Exchange and Other	(0.3)
Cash Paid	(46.3)
Balance at the end	101.5
Employee Terminations [Member]
Balance at the beginning	11.2
Restructuring Costs Charged to Results of Operations	54.0
Foreign Exchange and Other	0.1
Cash Paid	(24.3)
Balance at the end	41.0
Lease Terminations [Member]
Balance at the beginning	28.1
Restructuring Costs Charged to Results of Operations	14.9
Foreign Exchange and Other	0.7
Cash Paid	(14.0)
Balance at the end	29.7
Multi-Employer Pension Withdrawal Obligations [Member]
Balance at the beginning	13.6
Restructuring Costs Charged to Results of Operations	15.8
Foreign Exchange and Other
Cash Paid	(0.2)
Balance at the end	29.2
Other Restructuring Reserve [Member]
Balance at the beginning	1.1
Restructuring Costs Charged to Results of Operations	9.4
Foreign Exchange and Other	(1.1)
Cash Paid	(7.8)
Balance at the end	$ 1.6

XML



New Accounting Pronouncements

6 Months Ended

Jun. 30, 2011

New Accounting Pronouncements

New Accounting Pronouncements

18. New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-05 "Comprehensive Income (Topic 220): Presentation of Comprehensive Income" ("ASU 2011-05"), which prohibits the presentation of other comprehensive income in stockholders' equity and requires the presentation of net income, items of other comprehensive income and total comprehensive income in one continuous statement or two separate but consecutive statements. ASU 2011-05 will be effective for the Company in the first quarter of 2012 and will impact the Company's financial statement presentation, but otherwise is not expected to have a material impact on the Company's consolidated financial position, annual results of operations or cash flows.

In May 2011, the FASB issued Accounting Standards Update No. 2011-04 "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs" ("ASU 2011-04"), which amends the definition of fair value measurement principles and disclosure requirements to eliminate differences between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 requires new quantitative and qualitative disclosures about the sensitivity of recurring Level 3 measurement disclosures, as well as transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 will be effective for the Company in the first quarter of 2012 and will primarily impact the Company's disclosures, but otherwise is not expected to have a material impact on the Company's consolidated financial position, annual results of operations or cash flows.

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Document And Entity Information In Millions	6 Months Ended
	Jun. 30, 2011	Jul. 29, 2011
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2011
Trading Symbol	rrd
Entity Registrant Name	RR Donnelley & Sons Co
Entity Central Index Key	0000029669
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		187.8

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Goodwill And Other Intangible Assets (Other Intangible Assets) (Details) (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Net Book Value	$ 727.3	$ 775.0
Trademarks, Licenses And Agreements [Member]
Gross Carrying Amount	29.4	25.7
Accumulated Amortization	(23.6)	(23.0)
Net Book Value	5.8	2.7
Patents [Member]
Gross Carrying Amount	98.3	98.3
Accumulated Amortization	(89.7)	(83.6)
Net Book Value	8.6	14.7
Customer Relationship Intangibles [Member]
Gross Carrying Amount	1,257.7	1,244.3
Accumulated Amortization	(577.6)	(519.8)
Net Book Value	680.1	724.5
Trade Names [Member]
Gross Carrying Amount	23.3	22.7
Accumulated Amortization	(8.6)	(7.7)
Net Book Value	14.7	15.0
Total Amortizable Purchased Intangible Assets [Member]
Gross Carrying Amount	1,408.7	1,391.0
Accumulated Amortization	(699.5)	(634.1)
Net Book Value	709.2	756.9
Indefinite-Lived Trade Names [Member]
Gross Carrying Amount	18.1	18.1
Accumulated Amortization
Net Book Value	18.1	18.1
Total Purchased Intangible Assets [Member]
Gross Carrying Amount	1,426.8	1,409.1
Accumulated Amortization	(699.5)	(634.1)
Net Book Value	$ 727.3	$ 775.0

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Property, Plant And Equipment (Tables)

6 Months Ended

Jun. 30, 2011

Property, Plant And Equipment

Components Of Company's Property, Plant And Equipment

	June 30, 2011			December 31, 2010
Land	$	109.9		$	111.4
Buildings		1,213.6			1,197.9
Machinery and equipment		6,174.8			6,098.8
Property, plant and equipment – gross cost		7,498.3			7,408.1
Less: Accumulated depreciation		(5,466.8	)		(5,269.4	)
Total	$	2,031.5		$	2,138.7

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Goodwill And Other Intangible Assets (Goodwill) (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Goodwill at December 31, 2010	$ 4,440.2
Accumulated impairment losses at December 31, 2010	(1,913.4)
Total at December 31, 2010	2,526.8
Acquisitions	78.8
Foreign exchange and other adjustments	13.9
Goodwill at June 30, 2011	4,563.8
Accumulated impairment losses at June 30, 2011	(1,944.3)
Total at June 30, 2011	2,619.5
U.S. Print And Related Services [Member]
Goodwill at December 31, 2010	3,141.7
Accumulated impairment losses at December 31, 2010	(939.2)
Total at December 31, 2010	2,202.5
Acquisitions	78.8
Foreign exchange and other adjustments	(0.2)
Goodwill at June 30, 2011	3,220.3
Accumulated impairment losses at June 30, 2011	(939.2)
Total at June 30, 2011	2,281.1
International [Member]
Goodwill at December 31, 2010	1,298.5
Accumulated impairment losses at December 31, 2010	(974.2)
Total at December 31, 2010	324.3
Acquisitions
Foreign exchange and other adjustments	14.1
Goodwill at June 30, 2011	1,343.5
Accumulated impairment losses at June 30, 2011	(1,005.1)
Total at June 30, 2011	$ 338.4

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Employee Benefits

6 Months Ended

Jun. 30, 2011

Employee Benefits

Employee Benefits

7. Employee Benefits

The components of the estimated pension and postretirement benefits expense for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Pension expense
Service cost	$	21.5		$	20.1		$	42.8		$	40.2
Interest cost		48.9			45.9			97.0			91.9
Expected return on assets		(67.3	)		(64.4	)		(134.4	)		(128.9	)
Amortization, net		12.8			6.4			25.0			12.7
Net pension expense	$	15.9		$	8.0		$	30.4		$	15.9
Postretirement benefits expense
Service cost	$	2.3		$	3.0		$	4.6		$	6.1
Interest cost		6.2			7.1			12.4			14.2
Expected return on assets		(3.8	)		(3.9	)		(7.6	)		(7.8	)
Amortization, net		(1.3	)		(2.3	)		(2.5	)		(4.7	)
Net postretirement benefits expense	$	3.4		$	3.9		$	6.9		$	7.8

As a result of the adoption of the Patient Protection and Affordable Care Act, the Company decided to convert its current prescription drug program for certain medicare-eligible retirees to a group-based Company sponsored Medicare Part D program, or Employer Group Waiver Program ("EGWP"). Beginning January 1, 2013, EGWP subsidies to or for the benefit of this program will be used to reduce the Company's net retiree medical and prescription drug costs until such Company net costs are eliminated, and any EGWP subsidies received in excess of the amount necessary to offset such net costs will be used to reduce the included group of retirees' premiums. This change became effective in the second quarter of 2011 and is accounted for as a plan amendment, which resulted in the Company reducing its postretirement benefits liability by $81.5 million to $220.9 million.

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Goodwill And Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2011

Goodwill And Other Intangible Assets

Goodwill

Goodwill	U.S. Print and Related Services			International			Total
Net book value at December 31, 2010
Goodwill	$	3,141.7		$	1,298.5		$	4,440.2
Accumulated impairment losses		(939.2	)		(974.2	)		(1,913.4	)
Total		2,202.5			324.3			2,526.8
Acquisitions		78.8			—			78.8
Foreign exchange and other adjustments		(0.2	)		14.1			13.9
Net book value at June 30, 2011
Goodwill		3,220.3			1,343.5			4,563.8
Accumulated impairment losses		(939.2	)		(1,005.1	)		(1,944.3	)
Total	$	2,281.1		$	338.4		$	2,619.5

Other Intangible Assets

Other Intangible Assets	June 30, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trademarks, licenses and agreements	$	29.4	$	(23.6	)	$	5.8	$	25.7	$	(23.0	)	$	2.7
Patents		98.3		(89.7	)		8.6		98.3		(83.6	)		14.7
Customer relationship intangibles		1,257.7		(577.6	)		680.1		1,244.3		(519.8	)		724.5
Trade names		23.3		(8.6	)		14.7		22.7		(7.7	)		15.0
Total amortizable purchased intangible assets		1,408.7		(699.5	)		709.2		1,391.0		(634.1	)		756.9
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total purchased intangible assets	$	1,426.8	$	(699.5	)	$	727.3	$	1,409.1	$	(634.1	)	$	775.0

Components Of Other Intangible Assets

	Amount		Weighted Average Amortization Period
Trademarks, licenses and agreements	$	3.8		4.5
Trade names		0.5		5.0
Total additions	$	4.3

Estimated Annual Amortization Expense Related To Intangible Assets

For the year ending December 31,	Amount
2011	$	114.1
2012		101.1
2013		98.4
2014		96.0
2015		88.5
2016 and thereafter		268.4
Total	$	766.5

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Inventories (Components Of The Company's Inventories) (Details) (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Inventories
Raw materials and manufacturing supplies	$ 258.0	$ 259.6
Work in process	200.5	184.3
Finished goods	215.5	204.7
LIFO reserve	(94.0)	(88.0)
Total	$ 580.0	$ 560.6

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2011

Income Taxes

Unrecognized Tax Benefits

Balance at December 31, 2010	$	157.1
Additions for tax positions of the current year		3.0
Additions for tax positions of the prior year		0.1
Reductions for tax positions of prior years		(9.5	)
Settlements during the year		(1.7	)
Balance at June 30, 2011	$	149.0

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Inventories (Tables)

6 Months Ended

Jun. 30, 2011

Inventories

Components Of The Company's Inventories

	June 30, 2011			December 31, 2010
Raw materials and manufacturing supplies	$	258.0		$	259.6
Work in process		200.5			184.3
Finished goods		215.5			204.7
LIFO reserve		(94.0	)		(88.0	)
Total	$	580.0		$	560.6

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Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

12. Segment Information

The Company operates primarily in the printing industry, with related 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 products 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 related print and other logistics, premedia, print management and other services. This segment's products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, office products, 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 products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial printing and related services, direct mail, forms, labels, packaging and 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, primarily components of net pension and postretirement benefits expense other than service cost, are included in Corporate and not allocated to operating segments. In addition, 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 most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements.

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2011
U.S. Print and Related Services	$	1,927.1	$	(6.2	)	$	1,920.9	$	132.8		$	98.9	$	38.1
International		718.6		(16.1	)		702.5		43.6			31.6		21.1
Total operating segments		2,645.7		(22.3	)		2,623.4		176.4			130.5		59.2
Corporate		—		—			—		(60.3	)		10.2		21.9
Total operations	$	2,645.7	$	(22.3	)	$	2,623.4	$	116.1		$	140.7	$	81.1
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2010
U.S. Print and Related Services	$	1,818.3	$	(9.0	)	$	1,809.3	$	179.5		$	98.7	$	18.5
International		611.7		(12.4	)		599.3		42.7			28.1		17.7
Total operating segments		2,430.0		(21.4	)		2,408.6		222.2			126.8		36.2
Corporate		—		—			—		(46.9	)		8.0		18.4
Total operations	$	2,430.0	$	(21.4	)	$	2,408.6	$	175.3		$	134.8	$	54.6

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2011
U.S. Print and Related Services	$	3,885.7	$	(23.7	)	$	3,862.0	$	274.7		$	6,407.2	$	198.8	$	55.4
International		1,379.7		(34.8	)		1,344.9		87.7			2,483.3		62.0		46.9
Total operating segments		5,265.4		(58.5	)		5,206.9		362.4			8,890.5		260.8		102.3
Corporate		—		—			—		(136.9	)		135.7		20.1		25.9
Total operations	$	5,265.4	$	(58.5	)	$	5,206.9	$	225.5		$	9,026.2	$	280.9	$	128.2
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2010
U.S. Print and Related Services	$	3,660.6	$	(14.5	)	$	3,646.1	$	343.3		$	6,151.1	$	199.7	$	44.6
International		1,202.1		(24.5	)		1,177.6		76.4			2,062.7		57.8		30.1
Total operating segments		4,862.7		(39.0	)		4,823.7		419.7			8,213.8		257.5		74.7
Corporate		—		—			—		(98.6	)		392.0		15.9		19.8
Total operations	$	4,862.7	$	(39.0	)	$	4,823.7	$	321.1		$	8,605.8	$	273.4	$	94.5

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Inventories

6 Months Ended

Jun. 30, 2011

Inventories

Inventories

3. Inventories

	June 30, 2011			December 31, 2010
Raw materials and manufacturing supplies	$	258.0		$	259.6
Work in process		200.5			184.3
Finished goods		215.5			204.7
LIFO reserve		(94.0	)		(88.0	)
Total	$	580.0		$	560.6

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Debt (Tables)

6 Months Ended

Jun. 30, 2011

Debt

Components Of Debt

	June 30, 2011			December 31, 2010
Credit facility borrowings	$	475.0		$	120.0
5.625% senior notes due January 15, 2012		158.6			158.6
4.95% senior notes due April 1, 2014		599.4			599.2
5.50% senior notes due May 15, 2015		399.7			499.6
8.60% senior notes due August 15, 2016		346.4			346.0
6.125% senior notes due January 15, 2017		522.7			622.0
7.25% senior notes due May 15, 2018		600.0			—
11.25% senior notes due February 1, 2019 (a)		183.8			400.0
7.625% senior notes due June 15, 2020		400.0			400.0
8.875% debentures due April 15, 2021		80.9			80.9
6.625% debentures due April 15, 2029		199.3			199.3
8.820% debentures due April 15, 2031		69.0			68.9
Other, including capital leases		42.5			35.5
Total debt		4,077.3			3,530.0
Less: current portion		(649.6	)		(131.4	)
Long-term debt	$	3,427.7		$	3,398.6

(a) On May 17, 2011, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75%, as a result of a downgrades in the ratings of the notes by the rating agencies.

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Equity

6 Months Ended

Jun. 30, 2011

Equity

Equity

9. Equity

The following table summarizes the Company's equity activity for the six months ended June 30, 2011:

	RR Donnelley Shareholders' Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2010	$	2,224.3		$	21.1		$	2,245.4
Net earnings		46.1			0.7			46.8
Other comprehensive income		114.7			0.2			114.9
Share-based compensation		16.4			—			16.4
Withholdings for share-based awards and other		(6.4	)		—			(6.4	)
Cash dividends paid		(107.7	)		—			(107.7	)
Payments for the acquisition of common stock		(500.0	)		—			(500.0	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

The following table summarizes the Company's equity activity for the six months ended June 30, 2010:

	RR Donnelley Shareholders' Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2009	$	2,134.0		$	27.0		$	2,161.0
Net earnings (loss)		141.4			(3.2	)		138.2
Other comprehensive loss		(66.8	)		(0.1	)		(66.9	)
Share-based compensation		16.0			—			16.0
Withholdings for share-based awards and other		(1.9	)		—			(1.9	)
Cash dividends paid		(107.1	)		—			(107.1	)
Distributions to noncontrolling interests		—			(1.6	)		(1.6	)
Balance at June 30, 2010	$	2,115.6		$	22.1		$	2,137.7

Share Repurchase Program

On May 3, 2011, the Board of Directors of the Company approved a program that authorizes the repurchase of up to $1.0 billion of the Company's common stock through December 31, 2012. Share repurchases under the program may be made from time to time through a variety of methods as determined by the Company's management. The repurchase authorizations do not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase and may be modified, suspended or terminated at any time at the Company's discretion. The Company terminated its existing authorization of October 29, 2008 for the repurchase of up to 10 million shares of the Company's common stock.

Accelerated Share Repurchase Program

As part of the share repurchase program, on May 5, 2011 the Company entered into an accelerated share repurchase agreement ("ASR") with an investment bank under which the Company agreed to repurchase $500 million of its common stock. On May 10, 2011 the Company paid the $500 million purchase price and received an initial delivery of 19.9 million shares from the investment bank subject to a 20%, or $100 million, holdback. At the conclusion of the ASR, the Company may receive additional shares or be required to pay additional cash or deliver shares (at the Company's option) based upon the volume weighted average price of the Company's common stock (subject to a discount agreed upon with the investment bank) over an averaging period, which is expected to end around the end of the year. The investment bank will deliver any remaining shares to the Company shortly after the end of the averaging period.

The ASR was accounted for as an initial stock purchase transaction and a forward stock purchase contract. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net earnings per share from the effective date of the ASR. The forward stock purchase contract is classified as an equity instrument.

As of June 30, 2011, based on the volume weighted average price of the Company's common stock since the effective date of the ASR, $20.07, the investment bank would be required to deliver an additional 5.0 million shares to the Company. Increases in the volume weighted average price of the Company's common stock over the averaging period would decrease the number of shares the investment bank would be required to deliver, or increase the amount of cash or number of shares the Company would be required to deliver to the investment bank. Decreases in the volume weighted average price of the Company's common stock over the averaging period would increase the number of shares the investment bank would be required to deliver to the Company. As of June 30, 2011, the $100 million holdback was recorded as a reduction in additional paid-in capital in the Condensed Consolidated Balance Sheet.

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Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt

14. Debt

The Company's debt consists of the following:

	June 30, 2011			December 31, 2010
Credit facility borrowings	$	475.0		$	120.0
5.625% senior notes due January 15, 2012		158.6			158.6
4.95% senior notes due April 1, 2014		599.4			599.2
5.50% senior notes due May 15, 2015		399.7			499.6
8.60% senior notes due August 15, 2016		346.4			346.0
6.125% senior notes due January 15, 2017		522.7			622.0
7.25% senior notes due May 15, 2018		600.0			—
11.25% senior notes due February 1, 2019 (a)		183.8			400.0
7.625% senior notes due June 15, 2020		400.0			400.0
8.875% debentures due April 15, 2021		80.9			80.9
6.625% debentures due April 15, 2029		199.3			199.3
8.820% debentures due April 15, 2031		69.0			68.9
Other, including capital leases		42.5			35.5
Total debt		4,077.3			3,530.0
Less: current portion		(649.6	)		(131.4	)
Long-term debt	$	3,427.7		$	3,398.6

(a) On May 17, 2011, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75%, as a result of a downgrades in the ratings of the notes by the rating agencies.

The fair values of the senior notes and debentures, which were based upon the interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company's debt was greater than its book value by approximately $78.8 million and $259.3 million at June 30, 2011 and December 31, 2010, respectively.

On June 1, 2011, the Company issued $600.0 million of 7.25% senior notes due May 15, 2018. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2011. The net proceeds from the offering were used to repurchase $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The repurchases resulted in a pre-tax loss on debt extinguishment of $68.6 million. The remaining net proceeds were used for general corporate purposes and to repay outstanding borrowings under the Company's unsecured and committed revolving credit agreement (the "Credit Agreement").

Interest income was $3.6 million and $6.2 million for the three and six months ended June 30, 2011, respectively. Interest income was $1.7 million and $3.6 million for the three and six months ended June 30, 2010, respectively.

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Fair Value Measurement (Assets Measured At Fair Value On A Nonrecurring Basis) (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Long-lived assets held and used, Impairment Charge	$ 14.1	[1]
Long-lived assets held for sale or disposal, Impairment Charge	18.2	[2]
Total, Impairment Charge	32.3
Long-lived assets held and used, Net Book Value	65.8	[1]
Long-lived assets held for sale or dispoal, Net Book Value	1.3	[2]
Total, Net Book Value	67.1
Carrying amount of long lived assets held and used	82.6
Carrying amount of long lived assets held for sale or disposal	19.5
Fair Value Measurement (Level 3)
Long-lived assets held and used	68.5	[1]
Long-lived assets held for sale or disposal	1.3	[2]
Total, Fair Value Measurement	$ 69.8

[1] Long-lived assets held and used with a carrying amount of $82.6 million were written down to their fair value of $68.5 million, resulting in an impairment charge of $14.1 million for the six months ended June 30, 2011. The fair values used for measuring impairment of land, buildings, machinery and equipment and leasehold improvements were determined using Level 3 inputs. These fair values were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

[2] Long-lived assets held for sale or disposal with a carrying amount of $19.5 million were written down to their fair value of $1.3 million, resulting in an impairment charge of $18.2 million. The fair values of the land, buildings and machinery and equipment classified as held for sale or disposal were determined using Level 3 inputs and estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

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Earnings Per Share Attributable To RR Donnelley Common Shareholders

6 Months Ended

Jun. 30, 2011

Earnings Per Share Attributable To RR Donnelley Common Shareholders

Earnings Per Share Attributable To RR Donnelley Common Shareholders

10. Earnings per Share Attributable to RR Donnelley Common Shareholders

	Three Months Ended June  30,				Six Months Ended June  30,
	2011		2010		2011		2010
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	12.2	$	88.8	$	46.1	$	141.4
Denominator:
Weighted average number of common shares outstanding		196.7		206.3		201.9		206.0
Dilutive options and awards (a)		2.8		3.6		2.6		3.4
Diluted weighted average number of common shares outstanding		199.5		209.9		204.5		209.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.06	$	0.43	$	0.23	$	0.69
Diluted	$	0.06	$	0.42	$	0.23	$	0.68
Cash dividends paid per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a)

Diluted net earnings per share attributable to RR Donnelley common shareholders takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the three and six months ended June 30, 2011, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2011, options to purchase 3.5 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

For the three and six months ended June 30, 2010, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2010, options to purchase 3.6 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

As discussed in Note 9, on May 10, 2011, the Company received an initial delivery of 19.9 million shares under the ASR. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net earnings per share from the effective date of the agreement. Based upon the volume weighted average price of the Company's common stock through June 30, 2011, the shares related to the forward stock purchase component of the ASR were anti-dilutive for the three and six months ended June 30, 2011.

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Earnings Per Share Attributable To RR Donnelley Common Shareholders (Tables)

6 Months Ended

Jun. 30, 2011

Earnings Per Share Attributable To RR Donnelley Common Shareholders

Schedule Of Earnings Per Share

10. Earnings per Share Attributable to RR Donnelley Common Shareholders

	Three Months Ended June  30,				Six Months Ended June  30,
	2011		2010		2011		2010
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	12.2	$	88.8	$	46.1	$	141.4
Denominator:
Weighted average number of common shares outstanding		196.7		206.3		201.9		206.0
Dilutive options and awards (a)		2.8		3.6		2.6		3.4
Diluted weighted average number of common shares outstanding		199.5		209.9		204.5		209.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.06	$	0.43	$	0.23	$	0.69
Diluted	$	0.06	$	0.42	$	0.23	$	0.68
Cash dividends paid per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a)

Diluted net earnings per share attributable to RR Donnelley common shareholders takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the three and six months ended June 30, 2011, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2011, options to purchase 3.5 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

For the three and six months ended June 30, 2010, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2010, options to purchase 3.6 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-Based Compensation

Share-Based Compensation

8. Share-Based Compensation

The Company recognizes compensation expense, based on estimated grant date fair values, for all share-based awards issued to employees and directors, including stock options and restricted stock units. The total compensation expense related to all share-based compensation plans was $9.9 million and $16.4 million for the three and six months ended June 30, 2011, respectively. The total compensation expense related to all share-based compensation plans was $7.8 million and $16.0 million for the three and six months ended June 30, 2010, respectively.

Stock Options

The Company granted 200,000 and 540,000 stock options during the six months ended June 30, 2011 and 2010, respectively. The fair market value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The fair market value of these stock options was determined using the following assumptions:

	2011			2010
Expected volatility		36.69	%		35.61	%
Risk-free interest rate		2.54	%		2.75	%
Expected life (years)		6.25			6.25
Expected dividend yield		4.57	%		4.19	%

The grant date fair market value of these options was $4.39 and $4.81 per stock option for the six months ended June 30, 2011 and 2010, respectively.

Stock options as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2010		4,155		$	20.80		6.3	$	14.4
Granted		200			18.62		9.7
Exercised		(108	)		9.25
Cancelled/forfeited/expired		(202	)		24.96
Outstanding at June 30, 2011		4,045			20.73		6.3	$	16.9
Exercisable at June 30, 2011		1,056		$	11.48		5.3	$	8.6

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on June 30, 2011 and December 31, 2010, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2011 and December 31, 2010. This amount will change in future periods based on the fair market value of the Company's stock and the number of options outstanding. Total intrinsic value of options exercised for the three and six months ended June 30, 2011 was less than $0.1 million and $1.0 million, respectively. Total intrinsic value of options exercised for the three and six months ended June 30, 2010 was $0.1 million and $2.1 million, respectively.

Compensation expense related to stock options for the three and six months ended June 30, 2011 was $0.6 million and $1.4 million, respectively. Compensation expense related to stock options for the three and six months ended June 30, 2010 was $0.8 million and $1.5 million, respectively. As of June 30, 2011, $4.2 million of total unrecognized share-based compensation expense related to stock options is expected to be recognized over a weighted average period of 2.3 years.

Restricted Stock Units

Nonvested restricted stock unit awards as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2010		5,430		$	12.96
Granted		1,524			16.37
Vested		(1,858	)		12.93
Forfeited		(49	)		15.42
Nonvested at June 30, 2011		5,047		$	13.97

Compensation expense related to restricted stock units for the three and six months ended June 30, 2011 was $9.0 million and $14.4 million, respectively. Compensation expense related to restricted stock units for the three and six months ended June 30, 2010 was $7.0 million and $14.5 million, respectively. As of June 30, 2011, there was $37.6 million of unrecognized share-based compensation expense related to approximately 4.8 million restricted stock unit awards, with a weighted-average grant date fair market value of $13.87, which are expected to vest over a weighted-average period of 2.3 years.

Performance Share Units

During the six months ended June 30, 2011, a total of 235,000 performance share unit awards were granted to certain executive officers, payable upon the achievement of certain established performance targets for the three years ending December 31, 2013. Distributions under these awards are payable at the end of the performance period, which is January 1, 2011 through December 31, 2013, in common stock or cash, at the Company's discretion. The total potential payouts range from 117,500 shares to 235,000 shares should certain performance targets be achieved. These awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee or a change in control of the Company.

Compensation expense is currently being recognized based on an estimated payout of 235,000 shares. Compensation expense related to performance share unit awards for the three and six months ended June 30, 2011 was $0.3 million and $0.6 million, respectively. As of June 30, 2011, there was $3.0 million of unrecognized share-based compensation expense related to performance share unit awards, which is expected to be recognized over a period of 2.5 years.

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Restructuring And Impairment Charges (Net Restructuring And Impairment Charges) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Employee Terminations	$ 29.2	$ 6.1	$ 54.0	$ 15.3
Other restructuring charges	22.2	3.1	40.1	8.4
Impairment	24.3	1.5	32.4	2.5
Total	75.7	10.7	126.5	26.2
U.S. Print And Related Services [Member]
Employee Terminations	22.0	1.2	36.8	4.1
Other restructuring charges	19.5	1.3	36.0	3.3
Impairment	23.6	1.0	30.5	2.0
Total	65.1	3.5	103.3	9.4
International [Member]
Employee Terminations	6.7	4.9	14.6	11.3
Other restructuring charges	2.6	1.3	3.4	4.4
Impairment	0.5	0.3	1.0	0.3
Total	9.8	6.5	19.0	16.0
Corporate [Member]
Employee Terminations	0.5		2.6	(0.1)
Other restructuring charges	0.1	0.5	0.7	0.7
Impairment	0.2	0.2	0.9	0.2
Total	$ 0.8	$ 0.7	$ 4.2	$ 0.8

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Basis Of Presentation

6 Months Ended

Jun. 30, 2011

Basis Of Presentation

Basis Of Presentation

1. Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley & Sons Company and its subsidiaries (the "Company" or "RR Donnelley") and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company's latest Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on February 22, 2011. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011. All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates.

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Property, Plant And Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant And Equipment

Property, Plant And Equipment

4. Property, Plant and Equipment

	June 30, 2011			December 31, 2010
Land	$	109.9		$	111.4
Buildings		1,213.6			1,197.9
Machinery and equipment		6,174.8			6,098.8
Property, plant and equipment – gross cost		7,498.3			7,408.1
Less: Accumulated depreciation		(5,466.8	)		(5,269.4	)
Total	$	2,031.5		$	2,138.7

During the three and six months ended June 30, 2011, depreciation expense was $106.1 million and $212.3 million, respectively. During the three and six months ended June 30, 2010, depreciation expense was $106.5 million and $216.5 million, respectively.

Assets Held for Sale

Primarily as a result of restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $7.3 million at June 30, 2011 and $6.5 million at December 31, 2010. These assets were included in other current assets in the Condensed Consolidated Balance Sheets at June 30, 2011 and December 31, 2010 at the lower of their historical net book value or their estimated fair value, less estimated costs to sell.

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Acquisitions (Final Purchase Price Allocations For Acquisitions) (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Accounts receivable	$ 0.6
Property, plant and equipment and other long-term assets	3.3
Amortizable intangible assets	0.5
Goodwill	78.8
Accounts payable and accrued liabilities	(0.8)
Deferred taxes-net	7.0
Total purchase price-net of cash acquired	89.4
Less: fair value of Company's previously-held investments in Helium	13.9
Net cash paid	75.5
Bowne, Nimblefish, And 8touches [Member]
Accounts receivable	129.0
Inventories	32.1
Prepaid expenses and other current assets	18.1
Property, plant and equipment and other long-term assets	127.3
Amortizable intangible assets	159.8
Goodwill	257.9
Accounts payable and accrued liabilities	(159.7)
Pension benefits and other long-term liabilities	(76.7)
Deferred taxes-net	(17.6)
Total purchase price-net of cash acquired	470.2
Less: debt assumed	28.2
Net cash paid	$ 442.0

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Equity (Tables)

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Equity

Summary Of Company's Equity Activity

	RR Donnelley Shareholders' Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2010	$	2,224.3		$	21.1		$	2,245.4
Net earnings		46.1			0.7			46.8
Other comprehensive income		114.7			0.2			114.9
Share-based compensation		16.4			—			16.4
Withholdings for share-based awards and other		(6.4	)		—			(6.4	)
Cash dividends paid		(107.7	)		—			(107.7	)
Payments for the acquisition of common stock		(500.0	)		—			(500.0	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

	RR Donnelley Shareholders' Equity			Noncontrolling Interests			Total Equity
Balance at December 31, 2009	$	2,134.0		$	27.0		$	2,161.0
Net earnings (loss)		141.4			(3.2	)		138.2
Other comprehensive loss		(66.8	)		(0.1	)		(66.9	)
Share-based compensation		16.0			—			16.0
Withholdings for share-based awards and other		(1.9	)		—			(1.9	)
Cash dividends paid		(107.1	)		—			(107.1	)
Distributions to noncontrolling interests		—			(1.6	)		(1.6	)
Balance at June 30, 2010	$	2,115.6		$	22.1		$	2,137.7

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Share-Based Compensation (Summary Of Stock Option Activity) (Details) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Shares Under Option
Outstanding at December 31, 2010	4,155,000
Granted	200,000	540,000
Exercised	(108,000)
Cancelled/forfeited/expired	(202,000)
Outstanding at June 30, 2011	4,045,000
Exercisable at June 30, 2011	1,056,000
Weighted Average Exercise Price
Outstanding at December 31, 2010	$ 20.80
Granted	$ 18.62
Exercised	$ 9.25
Cancelled / forfeited / expired	$ 24.96
Outstanding at June 30, 2011	$ 20.73
Exercisable at June 30, 2011	$ 11.48
Weighted Average Remaining Contractual Term (Years)
Outstanding at December 31, 2010	6.3
Granted	9.7
Outstanding at June 30, 2011	6.3
Exercisable at June 30, 2011	5.3
Aggregate Intrinsic Value
Outstanding at December 31, 2010	$ 14.4
Outstanding at June 30, 2011	16.9
Exercisable at June 30, 2011	$ 8.6

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Equity (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended		6 Months Ended
	May 03, 2011 Share Repurchase Program [Member]	May 05, 2011 Accelerated Share Repurchase Program [Member]	Jun. 30, 2011 Accelerated Share Repurchase Program [Member]	May 10, 2011 Accelerated Share Repurchase Program [Member]
Share repurchases, authorized amount	$ 1,000	$ 500
Share repurchase authorization, shares, terminated amount	10
Cash payment for share repurchase under ASR program				500
Shares received from investment bank in initial delivery of shares repurchased				19.9
Percentage of shares held by investment bank pending settlement of accelerated share repurchase				20.00%
Value of shares held by investment bank pending settlement of accelerated share repurchase				100
Weighted average price of common stock			$ 20.07
Additional shares owed to Company under ASR program based on volume weighted average price			5.0
Adjustment to additional paid-in capital as a result of ASR holdback agreement			$ (100)

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Restructuring And Impairment Charges (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended				12 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011 U.S. Print And Related Services, Manufacturing Facility Closings [Member]	Jun. 30, 2011 Commercial Manufacturing Facility [Member]	Dec. 31, 2010 Global Turnkey Solutions Acquisition [Member]	Jun. 30, 2010 Global Turnkey Solutions Acquisition [Member] Employee Terminations [Member]	Jun. 30, 2011 Withdrawal From Multiemployer Defined Benefit Plan [Member]
Net restructuring charges	$ 29.2	$ 6.1	$ 54.0	$ 15.3
Number of employees used to determine employee termination costs			1,859					851
Number of employees who were terminated as of date			1,106
Other restructuring charges	22.2	3.1	40.1	8.4
Multi-employer pension plan partial withdrawal charges					15.8
Number of facility closed					3	1	2
Impairment charges	24.3	1.5	32.4	2.5
Current restructuring reserve (included in accrued liabilities)	58.2		58.2
Noncurrent restructuring reserve (included in noncurrent liabilities)									$ 43.3

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Comprehensive Income (Loss) (Schedule Of Comprehensive Income) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Comprehensive Income (Loss)
Net earnings	$ 12.5	$ 89.5	$ 46.8	$ 138.2
Translation adjustments	26.1	(65.6)	52.2	(72.0)
Adjustment for net periodic pension and postretirement benefit cost, net of tax	55.5	2.5	62.2	4.9
Change in fair value of derivatives, net of tax	0.4	0.1	0.5	0.2
Comprehensive income	94.5	26.5	161.7	71.3
Less: comprehensive income (loss) attributable to noncontrolling interests	0.5	0.7	0.9	(3.3)
Comprehensive income attributable to RR Donnelley common shareholders	$ 94.0	$ 25.8	$ 160.8	$ 74.6

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Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill And Other Intangible Assets

Goodwill And Other Intangible Assets

5. Goodwill and Other Intangible Assets

Goodwill at June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

 

Goodwill	U.S. Print and Related Services			International			Total
Net book value at December 31, 2010
Goodwill	$	3,141.7		$	1,298.5		$	4,440.2
Accumulated impairment losses		(939.2	)		(974.2	)		(1,913.4	)
Total		2,202.5			324.3			2,526.8
Acquisitions		78.8			—			78.8
Foreign exchange and other adjustments		(0.2	)		14.1			13.9
Net book value at June 30, 2011
Goodwill		3,220.3			1,343.5			4,563.8
Accumulated impairment losses		(939.2	)		(1,005.1	)		(1,944.3	)
Total	$	2,281.1		$	338.4		$	2,619.5

The components of other intangible assets at June 30, 2011 and December 31, 2010 were as follows:

Other Intangible Assets	June 30, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trademarks, licenses and agreements	$	29.4	$	(23.6	)	$	5.8	$	25.7	$	(23.0	)	$	2.7
Patents		98.3		(89.7	)		8.6		98.3		(83.6	)		14.7
Customer relationship intangibles		1,257.7		(577.6	)		680.1		1,244.3		(519.8	)		724.5
Trade names		23.3		(8.6	)		14.7		22.7		(7.7	)		15.0
Total amortizable purchased intangible assets		1,408.7		(699.5	)		709.2		1,391.0		(634.1	)		756.9
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total purchased intangible assets	$	1,426.8	$	(699.5	)	$	727.3	$	1,409.1	$	(634.1	)	$	775.0

During the six months ended June 30, 2011, the Company recorded the following additions to intangible assets:

 

	Amount		Weighted Average Amortization Period
Trademarks, licenses and agreements	$	3.8		4.5
Trade names		0.5		5.0
Total additions	$	4.3

             Amortization expense for other intangible assets was $28.8 million and $24.3 million for the three months ended June 30, 2011 and 2010, respectively, and $57.3 million and $49.0 million for the six months ended June 30, 2011 and 2010, respectively. The estimated annual amortization expense related to intangible assets as of June 30, 2011 is as follows:

For the year ending December 31,	Amount
2011	$	114.1
2012		101.1
2013		98.4
2014		96.0
2015		88.5
2016 and thereafter		268.4
Total	$	766.5

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Acquisitions (Pro Forma Adjustments Affecting Net Earnings) (Details) (Company, Helium, Journalism Online, Bowne, Nimblefish And 8touches [Member], USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Company, Helium, Journalism Online, Bowne, Nimblefish And 8touches [Member]
Depreciation and amortization of purchased assets, pre-tax	$ (0.2)	$ (0.1)	$ 1.4	$ (1.5)
Acquisition expenses, pre-tax	0.7	3.1	0.8	5.9
Restructuring and impairment charges, pre-tax	27.9	(24.9)	64.5	(57.1)
Inventory fair value adjustment, pre-tax			3.6	(5.7)
Other pro forma adjustments, pre-tax	(8.1)	(0.6)	(7.2)	6.9
Income taxes	$ (11.2)	$ 9.7	$ (27.2)	$ 25.1

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Restructuring And Impairment Charges (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Restructuring And Impairment Charges

Net Restructuring And Impairment Charges

	Three Months Ended June 30, 2011								Three Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	22.0	$	19.5	$	23.6	$	65.1	$	1.2	$	1.3	$	1.0	$	3.5
International		6.7		2.6		0.5		9.8		4.9		1.3		0.3		6.5
Corporate		0.5		0.1		0.2		0.8		—		0.5		0.2		0.7
Total	$	29.2	$	22.2	$	24.3	$	75.7	$	6.1	$	3.1	$	1.5	$	10.7

	Six Months Ended June 30, 2011								Six Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations			Other Charges		Impairment		Total
U.S. Print and Related Services	$	36.8	$	36.0	$	30.5	$	103.3	$	4.1		$	3.3	$	2.0	$	9.4
International		14.6		3.4		1.0		19.0		11.3			4.4		0.3		16.0
Corporate		2.6		0.7		0.9		4.2		(0.1	)		0.7		0.2		0.8
Total	$	54.0	$	40.1	$	32.4	$	126.5	$	15.3		$	8.4	$	2.5	$	26.2

Restructuring Reserve

	December 31, 2010		Restructuring Costs Charged to Results of Operations		Foreign Exchange and Other			Cash Paid			June 30, 2011
Employee terminations	$	11.2	$	54.0	$	0.1		$	(24.3	)	$	41.0
Lease terminations		28.1		14.9		0.7			(14.0	)		29.7
Multi-employer pension withdrawal obligations		13.6		15.8		—			(0.2	)		29.2
Other		1.1		9.4		(1.1	)		(7.8	)		1.6
Total	$	54.0	$	94.1	$	(0.3	)	$	(46.3	)	$	101.5

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Debt (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended			6 Months Ended			6 Months Ended	0 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended		12 Months Ended
	Jun. 15, 2011	Jun. 30, 2011	Jun. 30, 2010	Sep. 30, 2009	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010	Jun. 30, 2011 Investment And Other Income (Expense) [Member]	Jun. 01, 2011 7.25% Senior Notes Due May 15, 2018 [Member]	Jun. 30, 2011 7.25% Senior Notes Due May 15, 2018 [Member]	Dec. 31, 2010 7.25% Senior Notes Due May 15, 2018 [Member]	Jun. 30, 2011 11.25% Senior Notes Due February 1, 2019 [Member]	Jun. 30, 2010 11.25% Senior Notes Due February 1, 2019 [Member]	Dec. 31, 2010 11.25% Senior Notes Due February 1, 2019 [Member]	Jun. 30, 2011 6.125% Senior Notes Due January 15, 2017 [Member]	Jun. 30, 2010 6.125% Senior Notes Due January 15, 2017 [Member]	Dec. 31, 2010 6.125% Senior Notes Due January 15, 2017 [Member]	Jun. 30, 2011 5.50% Senior Notes Due May 15, 2015 [Member]	Jun. 30, 2010 5.50% Senior Notes Due May 15, 2015 [Member]	Dec. 31, 2010 5.50% Senior Notes Due May 15, 2015 [Member]
Amount of difference between fair value and book value		$ 78,800,000			$ 78,800,000		$ 259,300,000
Debt instrument face amount									600,000,000
Interest rate	5.50%			4.95%					7.25%	7.25%	7.25%	11.25%		11.25%	6.125%		6.125%	5.50%		5.50%
Maturity date	May 15, 2015			May 15, 2010						May 15, 2018	May 15, 2018	Feb. 01, 2019	Feb. 01, 2019	Feb. 01, 2019	Jan. 15, 2017	Jan. 15, 2017	Jan. 15, 2017	May 15, 2015	May 15, 2015	May 15, 2015
Interest rate terms									Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2011.
Repurchase of debt	100,000,000			174,200,000								216,200,000			100,000,000			100,000,000
Loss on debt extinguishment					68,600,000			(68,600,000)
Interest income		$ 3,600,000	$ 1,700,000		$ 6,200,000	$ 3,600,000

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Earnings Per Share Attributable To RR Donnelley Common Shareholders (Schedule Of Earnings Per Share) (Details) (USD $) In Millions, except Per Share data	3 Months Ended				6 Months Ended					3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2011		Jun. 30, 2010		Jun. 30, 2011		Jun. 30, 2010		May 10, 2011 Accelerated Share Repurchase Program [Member]	Jun. 30, 2011 Restricted Stock [Member]	Jun. 30, 2010 Restricted Stock [Member]	Jun. 30, 2011 Restricted Stock [Member]	Jun. 30, 2010 Restricted Stock [Member]	Jun. 30, 2011 Stock Options [Member]	Jun. 30, 2010 Stock Options [Member]	Jun. 30, 2010 Stock Options [Member]
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$ 12.2		$ 88.8		$ 46.1		$ 141.4
Denominator:
Weighted average number of common shares outstanding	196.7		206.3		201.9		206.0
Dilutive options and awards	2.8	[1]	3.6	[1]	2.6	[1]	3.4	[1]
Diluted weighted average number of common shares outstanding	199.5		209.9		204.5		209.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$ 0.06		$ 0.43		$ 0.23		$ 0.69
Diluted	$ 0.06		$ 0.42		$ 0.23		$ 0.68
Cash dividends paid per common share	$ 0.26		$ 0.26		$ 0.52		$ 0.52
Antidilutive securities
Antidilutive restricted stock units excluded from computation of earnings per share										2.8	2.8	3.0	3.0	3.5	3.6	3.6
Shares received from investment bank in initial delivery of shares repurchased									19.9

[1] (a) Diluted net earnings per share attributable to RR Donnelley common shareholders takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the three and six months ended June 30, 2011, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2011, options to purchase 3.5 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock. For the three and six months ended June 30, 2010, restricted stock units of 2.8 million and 3.0 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2010, options to purchase 3.6 million shares were anti-dilutive because the option exercise price exceeded the fair value of the stock.

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Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2011

Comprehensive Income (Loss)

Comprehensive Income (Loss)

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Net earnings	$	12.5	$	89.5		$	46.8	$	138.2
Translation adjustments		26.1		(65.6	)		52.2		(72.0	)
Adjustment for net periodic pension and postretirement benefit cost, net of tax		55.5		2.5			62.2		4.9
Change in fair value of derivatives, net of tax		0.4		0.1			0.5		0.2
Comprehensive income		94.5		26.5			161.7		71.3
Less: comprehensive income (loss) attributable to noncontrolling interests		0.5		0.7			0.9		(3.3	)
Comprehensive income attributable to RR Donnelley common shareholders	$	94.0	$	25.8		$	160.8	$	74.6

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Acquisitions (Pro Forma Results) (Details) (Company, Helium, Journalism Online, Bowne, Nimblefish And 8touches [Member], USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Company, Helium, Journalism Online, Bowne, Nimblefish And 8touches [Member]
Net sales	$ 2,624.2	$ 2,616.4	$ 5,208.6	$ 5,210.5
Net earnings attributable to RR Donnelley common shareholders	$ 20.6	$ 80.2	$ 79.7	$ 116.4
Basic	$ 0.10	$ 0.39	$ 0.39	$ 0.57
Diluted	$ 0.10	$ 0.38	$ 0.39	$ 0.56

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2011

Share-Based Compensation

Black-Scholes-Merton Option Pricing Model

	2011			2010
Expected volatility		36.69	%		35.61	%
Risk-free interest rate		2.54	%		2.75	%
Expected life (years)		6.25			6.25
Expected dividend yield		4.57	%		4.19	%

Summary Of Stock Option Activity

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2010		4,155		$	20.80		6.3	$	14.4
Granted		200			18.62		9.7
Exercised		(108	)		9.25
Cancelled/forfeited/expired		(202	)		24.96
Outstanding at June 30, 2011		4,045			20.73		6.3	$	16.9
Exercisable at June 30, 2011		1,056		$	11.48		5.3	$	8.6

Nonvested Restricted Stock Unit Awards

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2010		5,430		$	12.96
Granted		1,524			16.37
Vested		(1,858	)		12.93
Forfeited		(49	)		15.42
Nonvested at June 30, 2011		5,047		$	13.97

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Commitments And Contingencies

6 Months Ended

Jun. 30, 2011

Commitments And Contingencies

Commitments And Contingencies

13. Commitments and Contingencies

The Company is subject to laws and regulations relating to the protection of the environment. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are not discounted. The Company has been designated as a potentially responsible party in fourteen active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate seven other previously owned facilities and three other currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that the Company's liability could be joint and several, meaning that the Company could be required to pay an amount in excess of its proportionate share of the remediation costs. The Company's understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of the Company's estimated liability. The Company established reserves, recorded in accrued liabilities and other noncurrent liabilities, that it believes are adequate to cover its share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. While it is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that the Company may undertake in the future, in the opinion of management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect on the Company's consolidated annual results of operations, financial position or cash flows.

From time to time, the Company's customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material adverse effect on the Company's consolidated annual results of operations, financial position or cash flows.

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Share-Based Compensation (Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Share-based compensation	$ 9.9	$ 7.8	$ 16.4	$ 16.0
Granted, shares			1,524,000
Compensation expense recognized			16.4	16.0
Stock options granted			200,000	540,000
Grant date fair value of options			$ 4.39	$ 4.81
Intrinsic value of options exercised		0.1		2.1
Weighted-average grant date fair value	$ 13.97		$ 13.97		$ 12.96
Restricted stock units expected to vest	5,047,000		5,047,000		5,430,000
Maximum [Member]
Intrinsic value of options exercised	0.1		1.0
Maximum [Member]
Granted performance share unit awards, amount payable			235,000
Performance Share Unit Awards [Member]
Compensation expense related to award performance	0.3		0.6
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized	3.0		3.0
Unrecognized compensation expense, weighted-average period of recognition, in years			2.5
Granted performance share unit awards, amount payable per employee			235,000
Minimum [Member]
Granted performance share unit awards, amount payable			117,500
Stock Options [Member]
Compensation expense recognized	0.6	0.8	1.4	1.5
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized	4.2		4.2
Unrecognized compensation expense, weighted-average period of recognition, in years			2.3
Restricted Stock [Member]
Compensation expense recognized	9.0	7.0	14.4	14.5
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized	$ 37.6		$ 37.6
Weighted-average grant date fair value	$ 13.87		$ 13.87
Restricted stock units expected to vest	4,800,000		4,800,000
Expected weighted-average vesting period for restricted stock, in years			2.3

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Income Taxes (Details) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011
Income Taxes
Balance at December 31, 2010	$ 157.1
Additions for tax positions of the current year	3.0
Additions for tax positions of the prior year	0.1
Reductions for tax positions of prior years	(9.5)
Settlements during the year	(1.7)
Balance at June 30, 2011	149.0
Amount of unrecognized tax benefit that will decrease within 12 months	$ 70.8

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Equity (Summary Of Company Equity Activity) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Balance			$ 2,245.4	$ 2,161.0
Net earnings (loss)	12.5	89.5	46.8	138.2
Other comprehensive income (loss)			114.9	(66.9)
Share-based compensation			16.4	16.0
Withholdings for share-based awards and other			(6.4)	(1.9)
Cash dividends paid			(107.7)	(107.1)
Payments for the acquisition of common stock			(500.0)
Distributions to noncontrolling interests			(2.7)	(1.6)
Balance	1,806.7	2,137.7	1,806.7	2,137.7
RR Donnelley Shareholders' Equity [Member]
Balance			2,224.3	2,134.0
Net earnings (loss)			46.1	141.4
Other comprehensive income (loss)			114.7	(66.8)
Share-based compensation			16.4	16.0
Withholdings for share-based awards and other			(6.4)	(1.9)
Cash dividends paid			(107.7)	(107.1)
Payments for the acquisition of common stock			(500.0)
Distributions to noncontrolling interests
Balance	1,787.4	2,115.6	1,787.4	2,115.6
Noncontrolling Interests [Member]
Balance			21.1	27.0
Net earnings (loss)			0.7	(3.2)
Other comprehensive income (loss)			0.2	(0.1)
Share-based compensation
Withholdings for share-based awards and other
Cash dividends paid
Distributions to noncontrolling interests			(2.7)	(1.6)
Balance	$ 19.3	$ 22.1	$ 19.3	$ 22.1

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Restructuring And Impairment Charges

6 Months Ended

Jun. 30, 2011

Restructuring And Impairment Charges

Restructuring And Impairment Charges

6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended June 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2011								Three Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	22.0	$	19.5	$	23.6	$	65.1	$	1.2	$	1.3	$	1.0	$	3.5
International		6.7		2.6		0.5		9.8		4.9		1.3		0.3		6.5
Corporate		0.5		0.1		0.2		0.8		—		0.5		0.2		0.7
Total	$	29.2	$	22.2	$	24.3	$	75.7	$	6.1	$	3.1	$	1.5	$	10.7

For the six months ended June 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2011								Six Months Ended June 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations			Other Charges		Impairment		Total
U.S. Print and Related Services	$	36.8	$	36.0	$	30.5	$	103.3	$	4.1		$	3.3	$	2.0	$	9.4
International		14.6		3.4		1.0		19.0		11.3			4.4		0.3		16.0
Corporate		2.6		0.7		0.9		4.2		(0.1	)		0.7		0.2		0.8
Total	$	54.0	$	40.1	$	32.4	$	126.5	$	15.3		$	8.4	$	2.5	$	26.2

For the three and six months ended June 30, 2011, the Company recorded net restructuring charges of $29.2 million and $54.0 million, respectively, related to employee termination costs for 1,859 employees, of whom 1,106 were terminated as of June 30, 2011. These charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as the completed or announced closing of three book and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred multi-employer pension plan partial withdrawal charges, lease termination and other restructuring charges of $22.2 million and $40.1 million for the three and six months ended June 30, 2011, respectively. Of this amount, $15.8 million related to multi-employer pension plan partial withdrawal charges primarily attributable to the announced closing of three manufacturing facilities within the U.S. Print and Related Services segment. For the three and six months ended June 30, 2011, the Company also recorded $24.3 million and $32.4 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions.

For the three and six months ended June 30, 2010, the Company recorded net restructuring charges of $6.1 million and $15.3 million, respectively, for employee termination costs for 851 employees, all of whom were terminated as of June 30, 2011. These terminations were associated with actions resulting from the reorganization of certain operations, including those within the business process outsourcing and Latin America reporting units. In addition, continuing charges resulting from the closing of two Global Turnkey Solutions manufacturing facilities in 2009 within the International segment were recorded in 2010. These actions also included the reorganization of certain operations within the magazine, catalog and retail insert and variable print reporting units and the closing of one forms and labels manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred other restructuring charges, including lease termination and other facility closure costs, of $3.1 million and $8.4 million, respectively, for the three and six months ended June 30, 2010. For the three and six months ended June 30, 2010, the Company also recorded $1.5 million and $2.5 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions.

Restructuring Reserve

The restructuring reserve as of June 30, 2011 and December 31, 2010 and changes during the six months ended June 30, 2011 were as follows:

	December 31, 2010		Restructuring Costs Charged to Results of Operations		Foreign Exchange and Other			Cash Paid			June 30, 2011
Employee terminations	$	11.2	$	54.0	$	0.1		$	(24.3	)	$	41.0
Lease terminations		28.1		14.9		0.7			(14.0	)		29.7
Multi-employer pension withdrawal obligations		13.6		15.8		—			(0.2	)		29.2
Other		1.1		9.4		(1.1	)		(7.8	)		1.6
Total	$	54.0	$	94.1	$	(0.3	)	$	(46.3	)	$	101.5

The current portion of restructuring reserves of $58.2 million was included in accrued liabilities at June 30, 2011, while the long-term portion of $43.3 million, primarily related to multi-employer pension plan partial withdrawal charges and lease termination costs, was included in other noncurrent liabilities at June 30, 2011.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June of 2012.

Payments on certain of the lease obligations are scheduled to continue until 2026 and payments on certain of the multi-employer pension plan partial withdrawal charges are scheduled to continue until 2021. Market conditions and the Company's ability to sublease these properties could affect the ultimate charge related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Condensed Consolidated Financial Statements of future periods.

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Fair Value Measurement

6 Months Ended

Jun. 30, 2011

Fair Value Measurement

Fair Value Measurement

16. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company's only assets and liabilities adjusted to fair value on a recurring basis are pension and other postretirement plan assets, foreign exchange forward contracts and interest rate swaps. See Note 15 for further discussion on the fair value of the Company's foreign exchange forward contracts and interest rate swaps as of June 30, 2011 and December 31, 2010.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. See Note 2 for further discussion on the fair value of assets and liabilities associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition and still held at June 30, 2011 are summarized below:

	Impairment Charge		Fair Value Measurement (Level 3)		June 30, 2011 Net Book Value
Long-lived assets held and used (1)	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal (2)		18.2		1.3		1.3
Total	$	32.3	$	69.8	$	67.1

(1) Long-lived assets held and used with a carrying amount of $82.6 million were written down to their fair value of $68.5 million, resulting in an impairment charge of $14.1 million for the six months ended June 30, 2011. The fair values used for measuring impairment of land, buildings, machinery and equipment and leasehold improvements were determined using Level 3 inputs. These fair values were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

(2) Long-lived assets held for sale or disposal with a carrying amount of $19.5 million were written down to their fair value of $1.3 million, resulting in an impairment charge of $18.2 million. The fair values of the land, buildings and machinery and equipment classified as held for sale or disposal were determined using Level 3 inputs and estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

 See Note 14 for the fair value of the Company's debt.

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Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Total Sales	$ 2,645.7	$ 2,430.0	$ 5,265.4	$ 4,862.7
Intersegment Sales	(22.3)	(21.4)	(58.5)	(39.0)
Net Sales	2,623.4	2,408.6	5,206.9	4,823.7
Income (Loss) from Operations	116.1	175.3	225.5	321.1
Assets of Operations	9,026.2	8,605.8	9,026.2	8,605.8	9,083.2
Depreciation and Amortization	140.7	134.8	280.9	273.4
Capital Expenditures	81.1	54.6	128.2	94.5
U.S. Print And Related Services [Member]
Total Sales	1,927.1	1,818.3	3,885.7	3,660.6
Intersegment Sales	(6.2)	(9.0)	(23.7)	(14.5)
Net Sales	1,920.9	1,809.3	3,862.0	3,646.1
Income (Loss) from Operations	132.8	179.5	274.7	343.3
Assets of Operations	6,407.2	6,151.1	6,407.2	6,151.1
Depreciation and Amortization	98.9	98.7	198.8	199.7
Capital Expenditures	38.1	18.5	55.4	44.6
International [Member]
Total Sales	718.6	611.7	1,379.7	1,202.1
Intersegment Sales	(16.1)	(12.4)	(34.8)	(24.5)
Net Sales	702.5	599.3	1,344.9	1,177.6
Income (Loss) from Operations	43.6	42.7	87.7	76.4
Assets of Operations	2,483.3	2,062.7	2,483.3	2,062.7
Depreciation and Amortization	31.6	28.1	62.0	57.8
Capital Expenditures	21.1	17.7	46.9	30.1
Total Operating Segments [Member]
Total Sales	2,645.7	2,430.0	5,265.4	4,862.7
Intersegment Sales	(22.3)	(21.4)	(58.5)	(39.0)
Net Sales	2,623.4	2,408.6	5,206.9	4,823.7
Income (Loss) from Operations	176.4	222.2	362.4	419.7
Assets of Operations	8,890.5	8,213.8	8,890.5	8,213.8
Depreciation and Amortization	130.5	126.8	260.8	257.5
Capital Expenditures	59.2	36.2	102.3	74.7
Corporate [Member]
Total Sales
Intersegment Sales
Net Sales
Income (Loss) from Operations	(60.3)	(46.9)	(136.9)	(98.6)
Assets of Operations	135.7	392.0	135.7	392.0
Depreciation and Amortization	10.2	8.0	20.1	15.9
Capital Expenditures	$ 21.9	$ 18.4	$ 25.9	$ 19.8

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Comprehensive Income (Loss) (Narrative) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Tax related to fair value of derivatives	$ 0.3	$ 0.1	$ 0.3
Tax related to adjustment for net periodic pension and postretirement expense	35.9	1.4	39.9	2.8
Maximum [Member]
Tax related to fair value of derivatives				$ 0.1

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Acquisitions (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended		1 Months Ended	0 Months Ended	1 Months Ended		0 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 21, 2011 Helium, Inc [Member]	Mar. 24, 2011 Journalism Online, LLC [Member] U.S. Print And Related Services [Member]	Dec. 31, 2010 8touches [Member] U.S. Print And Related Services [Member]	Dec. 14, 2010 Nimblefish Technologies [Member] U.S. Print And Related Services [Member]	Dec. 31, 2010 Nimblefish Technologies [Member] U.S. Print And Related Services [Member]	Nov. 30, 2010 Bowne & Co., Inc. [Member] US Print And Related Services And International [Member]	Nov. 24, 2010 Bowne & Co., Inc. [Member] US Print And Related Services And International [Member]
Ownership in equity investment					23.70%
Effective date of acquisition					June 21, 2011	March 24, 2011	December 31, 2010	December 14, 2010			November 24, 2010
Purchase price of acquisition	$ 89.4		$ 89.4		$ 57.0	$ 19.6	$ 1.1	$ 3.9			$ 465.2
Debt assumed in acquisition								2.0			26.2
Cash acquired from acquisition					0.1	0.4					41.4
Acquisition including a company loan					1.1
Fair value of the company's previously held equity investment					12.8
Gain on equity investment					10.0
Repayment of debt assumed in acquisition									1.9	25.4
Pro forma amortization of purchased intangibles	28.8	28.5	57.3	57.5
Pro forma restructuring and impairment charges from continuing operations	$ 47.8	$ 37.8	$ 62.0	$ 89.6

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Derivatives (Pre-Tax Gains (Losses) Related To Derivatives Not Designated As Hedges) (Details) (Selling, General And Administrative Expenses [Member], USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Total gain (loss) recognized in the condensed consolidated statements of operations	$ 0.1	$ (8.5)	$ 1.7	$ (4.4)
Foreign Exchange Forward Contracts [Member] | Nondesignated [Member]
Total gain (loss) recognized in the condensed consolidated statements of operations	$ 0.1	$ (8.5)	$ 1.7	$ (4.4)

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Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2011

Employee Benefits

Components Of Estimated Pension And Postretirement Benefits Expense

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Pension expense
Service cost	$	21.5		$	20.1		$	42.8		$	40.2
Interest cost		48.9			45.9			97.0			91.9
Expected return on assets		(67.3	)		(64.4	)		(134.4	)		(128.9	)
Amortization, net		12.8			6.4			25.0			12.7
Net pension expense	$	15.9		$	8.0		$	30.4		$	15.9
Postretirement benefits expense
Service cost	$	2.3		$	3.0		$	4.6		$	6.1
Interest cost		6.2			7.1			12.4			14.2
Expected return on assets		(3.8	)		(3.9	)		(7.6	)		(7.8	)
Amortization, net		(1.3	)		(2.3	)		(2.5	)		(4.7	)
Net postretirement benefits expense	$	3.4		$	3.9		$	6.9		$	7.8

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Condensed Consolidated Statements Of Cash Flows (USD $) In Millions	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
OPERATING ACTIVITIES
Net earnings	$ 46.8	$ 138.2
Adjustments to reconcile net earnings to cash provided by operating activities:
Impairment charges	32.4	2.5
Depreciation and amortization	280.9	273.4
Provision for doubtful accounts receivable	7.5	4.7
Share-based compensation	16.4	16.0
Deferred taxes	(28.6)	(38.6)
Change in uncertain tax positions	(6.1)
Gain on sale of investments and other assets - net	(12.8)	(0.6)
Loss related to Venezuela currency devaluation		8.9
Loss on debt extinguishment	68.6
Other	15.1	19.3
Changes in operating assets and liabilities-net of acquisitions:
Accounts receivable-net	(75.3)	(56.2)
Inventories	(13.2)	13.9
Prepaid expenses and other current assets	(14.8)	(5.6)
Accounts payable	(30.4)	(34.2)
Income taxes payable and receivable	(22.8)	20.9
Accrued liabilities and other	(95.6)	(93.5)
Net cash provided by operating activities	168.1	269.1
INVESTING ACTIVITIES
Capital expenditures	(128.2)	(94.5)
Acquisition of businesses, net of cash acquired	(75.4)	1.8
Proceeds from return of capital and sale of investments and other assets	2.1	14.3
Purchases of investments	(7.0)	(23.7)
Transfers from restricted cash	0.1	0.1
Net cash used in investing activities	(208.4)	(102.0)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	600.0	400.0
Net change in short-term debt	4.6	(4.0)
Payments of current maturities and long-term debt	(481.6)	(326.6)
Net proceeds from credit facility borrowings	355.0
Debt issuance costs	(9.6)	(2.6)
Issuance of common stock	7.1	6.6
Payments for the acquisition of common stock	(500.0)
Dividends paid	(107.7)	(107.1)
Distributions to noncontrolling interests	(2.2)	(1.6)
Net cash used in financing activities	(134.4)	(35.3)
Effect of exchange rate on cash and cash equivalents	18.6	(15.2)
Net (decrease) increase in cash and cash equivalents	(156.1)	116.6
Cash and cash equivalents at beginning of period	519.1	499.2
Cash and cash equivalents at end of period	$ 363.0	$ 615.8

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Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

17. Income Taxes

The Company's unrecognized tax benefits at June 30, 2011 and December 31, 2010 were as follows:

Balance at December 31, 2010	$	157.1
Additions for tax positions of the current year		3.0
Additions for tax positions of the prior year		0.1
Reductions for tax positions of prior years		(9.5	)
Settlements during the year		(1.7	)
Balance at June 30, 2011	$	149.0

As of June 30, 2011, it is reasonably possible that the total amounts of unrecognized tax benefits will decrease within twelve months by as much as $70.8 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal and state tax positions.

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Property, Plant And Equipment (Narrative) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Property, Plant And Equipment
Depreciation expense	$ 106.1	$ 106.5	$ 212.3	$ 216.5
Book value of assets held for sale	$ 7.3		$ 7.3		$ 6.5

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Acquisitions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2011

Company, Helium, Journalism Online, Bowne, Nimblefish And 8touches [Member]

Jun. 30, 2011

Journalism Online, LLC And Helium [Member]

Dec. 31, 2010

Bowne, Nimblefish, And 8touches [Member]

Final Purchase Price Allocation For Acquisitions

Accounts receivable	$	0.6
Property, plant and equipment and other long-term assets		3.3
Amortizable intangible assets		0.5
Goodwill		78.8
Accounts payable and accrued liabilities		(0.8	)
Deferred taxes-net		7.0
Total purchase price-net of cash acquired		89.4
Less: fair value of Company's previously-held investments in Helium		13.9
Net cash paid	$	75.5

Accounts receivable	$	129.0
Inventories		32.1
Prepaid expenses and other current assets		18.1
Property, plant and equipment and other long-term assets		127.3
Amortizable intangible assets		159.8
Goodwill		257.9
Accounts payable and accrued liabilities		(159.7	)
Pension benefits and other long-term liabilities		(76.7	)
Deferred taxes—net		(17.6	)
Total purchase price—net of cash acquired		470.2
Less: debt assumed		28.2
Net cash paid	$	442.0

Pro Forma Results

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net sales	$	2,624.2	$	2,616.4	$	5,208.6	$	5,210.5
Net earnings attributable to RR Donnelley common shareholders		20.6		80.2		79.7		116.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.10	$	0.39	$	0.39	$	0.57
Diluted	$	0.10	$	0.38	$	0.39	$	0.56

Pro Forma Adjustments Affecting Net Earnings

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Depreciation and amortization of purchased assets, pre-tax	$	(0.2	)	$	(0.1	)	$	1.4		$	(1.5	)
Acquisition expenses, pre-tax		0.7			3.1			0.8			5.9
Restructuring and impairment charges, pre-tax		27.9			(24.9	)		64.5			(57.1	)
Inventory fair value adjustment, pre-tax		—			—			3.6			(5.7	)
Other pro forma adjustments, pre-tax		(8.1	)		(0.6	)		(7.2	)		6.9
Income taxes		(11.2	)		9.7			(27.2	)		25.1

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Derivatives (Pre-Tax Gains (Losses) Related To Derivates Designed As Hedges) (Details) (Cash Flow Hedges [Member], USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Loss On Debt Extinguishment [Member]
Loss reclassified from AOCI into income (Effective Portion)
Gain (Loss) recognized in income (Ineffective Portion)	(0.5)		(0.5)
Interest Expense-Net [Member]
Loss reclassified from AOCI into income (Effective Portion)	(0.1)	(0.1)	(0.3)	(0.3)
Interest Rate Lock [Member]
Gain (Loss) recognized in OCI (Effective Portion)

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Derivatives (Narrative) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended			6 Months Ended				3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Jun. 15, 2011	Jun. 30, 2011	Jun. 30, 2010	Sep. 30, 2009	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010	May 31, 2005	Apr. 09, 2010 Interest Rate Swaps [Member]	Jun. 30, 2011 Scenario, Forecast [Member] Cash Flow Hedges [Member] Interest Rate Lock [Member]	Jun. 30, 2011 Fair Value Hedging [Member]	Jun. 30, 2010 Fair Value Hedging [Member]	Jun. 30, 2011 Fair Value Hedging [Member]	Jun. 30, 2010 Fair Value Hedging [Member]
Aggregate notional value of foreign exchange forward contracts		$ 102.5			$ 102.5		$ 100.9
Interest rate swap agreements effectively changed the interest rate on fixed-rate senior notes									600
Notional amount of interest rate fair value hedge derivatives									600
Reduction to interest expense		61.3	52.8		119.2	108.5					(2.5)	(2.2)	(5.1)	(2.2)
Terminated derivatives
Loss recorded in accumulated other comprehensive income as a result of terminating interest rate lock agreements		1.2			1.2			12.9
Repurchased senior notes which were hedged as part of the interest rate lock agreements	100.0			174.2
Interest rate	5.50%			4.95%					4.95%
Maturity date	May 15, 2015			May 15, 2010					Apr. 01, 2014
Pre-tax loss reclassified from accumulated other comprehensive income	0.5			2.7
Loss reclassified from AOCI into income (Effective Portion)										$ 0.3

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Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions

Acquisitions

2. Acquisitions

2011 Acquisitions

On June 21, 2011, the Company acquired Helium, Inc. ("Helium"), an online community offering publishers, catalogers and other customers stock and custom content, as well as a comprehensive range of editorial solutions. As the Company previously held a 23.7% equity investment in Helium, the purchase price for the remaining equity of Helium was $57.0 million net of cash acquired of $0.1 million and included an amount due from Helium of $1.1 million. The fair value of the Company's previously held equity investment was $12.8 million, resulting in the recognition of a $10.0 million gain, which is reflected in investment and other income (expense) in the Condensed Consolidated Statements of Operations. The fair value of the previously held equity investment was determined based on the purchase price paid for the remaining equity less an estimated control premium and was determined to be Level 3 under the fair value hierarchy. Other than this gain, the Company's Condensed Consolidated Statements of Operations were not impacted by this acquisition for the three and six months ended June 30, 2011. Helium's operations are included in the U.S. Print and Related Services segment.

On March 24, 2011, the Company acquired Journalism Online, LLC ("Journalism Online"), an online provider of tools that allow consumers to purchase online subscriptions from publishers. The purchase price for Journalism Online was $19.6 million net of cash acquired of $0.4 million. Journalism Online's operations are included in the U.S. Print and Related Services segment.

The operations of these acquired businesses are complementary to the Company's existing products and services. Journalism Online's Press+ offering provides subscription management and online content payment services that increase the breadth of services the Company offers to its existing base of publishing customers. The ability to bundle Helium's content development solutions with the Company's complete offering of content delivery resources addresses customers' needs across the full breadth of the supply chain.

The Journalism Online and Helium acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions and the fair value of the previously-held investments in Helium over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill related to Helium is not tax deductible. Based on the valuations, the final purchase price allocations for these 2011 acquisitions were as follows:

Accounts receivable	$	0.6
Property, plant and equipment and other long-term assets		3.3
Amortizable intangible assets		0.5
Goodwill		78.8
Accounts payable and accrued liabilities		(0.8	)
Deferred taxes-net		7.0
Total purchase price-net of cash acquired		89.4
Less: fair value of Company's previously-held investments in Helium		13.9
Net cash paid	$	75.5

The fair values of property, plant and equipment, amortizable intangible assets and goodwill associated with the acquisitions of Journalism Online and Helium were determined to be Level 3 under the fair value hierarchy.

2010 Acquisitions

On December 31, 2010, the Company acquired the assets of 8touches, an online provider of tools that allow real estate associates, brokers, Multiple Listing Service (MLS) associations and other marketers to create customized communications materials. The purchase price for 8touches was $1.1 million. 8touches' operations are included in the U.S. Print and Related Services segment.

On December 14, 2010, the Company acquired the assets of Nimblefish Technologies ("Nimblefish"), a provider of multi-channel marketing services to leading retail, technology, telecom, hospitality and other customers. The purchase price for Nimblefish was $3.9 million, including debt assumed of $2.0 million. The Company subsequently repaid $1.9 million of the debt assumed in December 2010. Nimblefish's operations are included in the U.S. Print and Related Services segment.

On November 24, 2010, the Company acquired Bowne & Co., Inc. ("Bowne"), a provider of shareholder and marketing communication services, with operations in North America, Latin America, Europe and Asia. The purchase price for Bowne was $465.2 million, including debt assumed of $26.2 million and net of cash acquired of $41.4 million. Immediately following the acquisition, the Company subsequently repaid $25.4 million of the debt assumed. Bowne's operations are included in both the U.S. Print and Related Services and International segments.

The operations of these acquired businesses are complementary to the Company's existing products and services. As a result, the additions of these businesses are expected to improve the Company's ability to serve customers and reduce management, real estate and manufacturing costs.

The Bowne, Nimblefish and 8touches acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill, most of which is not tax deductible. Based on the valuations, the final purchase price allocations for these 2010 acquisitions were as follows:

Accounts receivable	$	129.0
Inventories		32.1
Prepaid expenses and other current assets		18.1
Property, plant and equipment and other long-term assets		127.3
Amortizable intangible assets		159.8
Goodwill		257.9
Accounts payable and accrued liabilities		(159.7	)
Pension benefits and other long-term liabilities		(76.7	)
Deferred taxes—net		(17.6	)
Total purchase price—net of cash acquired		470.2
Less: debt assumed		28.2
Net cash paid	$	442.0

The fair values of property, plant and equipment, goodwill and intangible assets associated with the acquisitions of Bowne, Nimblefish and 8touches were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated using dealer quotes and other indicators of current market place conditions. Customer relationships intangible asset values were estimated based on future cash flows and customer attrition rates discounted using an estimated weighted-average cost of capital. The tradename intangible asset value was estimated based on the relief of royalty method.

Pro forma results

The following unaudited pro forma financial information for the three and six months ended June 30, 2011 and 2010 presents the combined results of operations of the Company, Helium, Journalism Online, Bowne, Nimblefish and 8touches as if the acquisitions had occurred at January 1, 2010.

The unaudited pro forma financial information is not intended to represent or be indicative of the Company's consolidated results of operations or financial condition that would have been reported had these acquisitions been completed as of the beginning of the period presented and should not be taken as indicative of the Company's future consolidated results of operations or financial condition. Pro forma adjustments are tax-effected at the applicable statutory tax rates.

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net sales	$	2,624.2	$	2,616.4	$	5,208.6	$	5,210.5
Net earnings attributable to RR Donnelley common shareholders		20.6		80.2		79.7		116.4
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.10	$	0.39	$	0.39	$	0.57
Diluted	$	0.10	$	0.38	$	0.39	$	0.56

              The unaudited pro forma financial information for the three months ended June 30, 2011 and 2010 included $28.8 million and $28.5 million, respectively, for the amortization of purchased intangibles. Amortization of purchased intangibles for the six months ended June 30, 2011 and 2010 was $57.3 million and $57.5 million, respectively. In addition, the unaudited pro forma financial information includes restructuring and impairment charges from operations of $47.8 million and $37.8 million for the three months ended June 30, 2011 and 2010, respectively. Restructuring and impairment charges for the six months ended June 30, 2011 and 2010 were $62.0 million and $89.6 million, respectively. The pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Depreciation and amortization of purchased assets, pre-tax	$	(0.2	)	$	(0.1	)	$	1.4		$	(1.5	)
Acquisition expenses, pre-tax		0.7			3.1			0.8			5.9
Restructuring and impairment charges, pre-tax		27.9			(24.9	)		64.5			(57.1	)
Inventory fair value adjustment, pre-tax		—			—			3.6			(5.7	)
Other pro forma adjustments, pre-tax		(8.1	)		(0.6	)		(7.2	)		6.9
Income taxes		(11.2	)		9.7			(27.2	)		25.1

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Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2011

Comprehensive Income (Loss)

Comprehensive Income (Loss)

11. Comprehensive Income (Loss)

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Net earnings	$	12.5	$	89.5		$	46.8	$	138.2
Translation adjustments		26.1		(65.6	)		52.2		(72.0	)
Adjustment for net periodic pension and postretirement benefit cost, net of tax		55.5		2.5			62.2		4.9
Change in fair value of derivatives, net of tax		0.4		0.1			0.5		0.2
Comprehensive income		94.5		26.5			161.7		71.3
Less: comprehensive income (loss) attributable to noncontrolling interests		0.5		0.7			0.9		(3.3	)
Comprehensive income attributable to RR Donnelley common shareholders	$	94.0	$	25.8		$	160.8	$	74.6

For the three and six months ended June 30, 2011, the changes in other comprehensive income were net of tax provisions of $0.3 million, in each respective period, related to the change in fair value of derivatives and $35.9 million and $39.9 million, respectively, related to the adjustment for net periodic pension and postretirement benefit costs. For the three and six months ended June 30, 2010, the changes in other comprehensive income were net of tax provisions of less than $0.1 million, in each respective period, related to the change in fair value of derivatives and tax benefits of $1.4 million and $2.8 million, respectively, for the adjustment for net periodic pension and postretirement benefit costs.

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Employee Benefits (Components Of Estimated Pension And Postretirement Benefits Expense) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Pension Expense [Member]
Service cost	$ 21.5	$ 20.1	$ 42.8	$ 40.2
Interest cost	48.9	45.9	97.0	91.9
Expected return on assets	(67.3)	(64.4)	(134.4)	(128.9)
Amortization, net	12.8	6.4	25.0	12.7
Net periodic benefit expense (benefit)	15.9	8.0	30.4	15.9
Postretirement Benefits Expense[Member]
Service cost	2.3	3.0	4.6	6.1
Interest cost	6.2	7.1	12.4	14.2
Expected return on assets	(3.8)	(3.9)	(7.6)	(7.8)
Amortization, net	(1.3)	(2.3)	(2.5)	(4.7)
Net periodic benefit expense (benefit)	$ 3.4	$ 3.9	$ 6.9	$ 7.8

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Share-Based Compensation (Nonvested Restricted Stock Unit Awards) (Details) (USD $) In Thousands, except Per Share data	6 Months Ended
	Jun. 30, 2011
Share-Based Compensation
Nonvested at December 31, 2010, shares	5,430
Granted, shares	1,524
Vested, shares	(1,858)
Forfeited, shares	(49)
Nonvested at June 30, 2011, shares	5,047
Nonvested at December 31, 2010, Weighted Average Grant Date Fair Value	$ 12.96
Granted, Weighted Average Grant Date Fair Value	$ 16.37
Vested, Weighted Average Grant Date Fair Value	$ 12.93
Forfeited, Weighted Average Grant Date Fair Value	$ 15.42
Nonvested at June 30, 2011, Weighted-Average Grant Date Fair Value	$ 13.97

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Derivatives (Derivatives Not Designated As Hedges) (Details) (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Prepaid Expenses And Other Current Assets [Member] | Nondesignated [Member]
Derivative assets	$ 0.3	$ 0.5
Accrued Liabilities [Member] | Nondesignated [Member]
Derivative liabilities	0.3	0.3
Other Noncurrent Assets [Member]
Derivative assets	$ 20.2	$ 16.8

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Segment Information (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Segment Information

Schedule Of Segment Reporting Information

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2011
U.S. Print and Related Services	$	1,927.1	$	(6.2	)	$	1,920.9	$	132.8		$	98.9	$	38.1
International		718.6		(16.1	)		702.5		43.6			31.6		21.1
Total operating segments		2,645.7		(22.3	)		2,623.4		176.4			130.5		59.2
Corporate		—		—			—		(60.3	)		10.2		21.9
Total operations	$	2,645.7	$	(22.3	)	$	2,623.4	$	116.1		$	140.7	$	81.1
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Three months ended June 30, 2010
U.S. Print and Related Services	$	1,818.3	$	(9.0	)	$	1,809.3	$	179.5		$	98.7	$	18.5
International		611.7		(12.4	)		599.3		42.7			28.1		17.7
Total operating segments		2,430.0		(21.4	)		2,408.6		222.2			126.8		36.2
Corporate		—		—			—		(46.9	)		8.0		18.4
Total operations	$	2,430.0	$	(21.4	)	$	2,408.6	$	175.3		$	134.8	$	54.6

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2011
U.S. Print and Related Services	$	3,885.7	$	(23.7	)	$	3,862.0	$	274.7		$	6,407.2	$	198.8	$	55.4
International		1,379.7		(34.8	)		1,344.9		87.7			2,483.3		62.0		46.9
Total operating segments		5,265.4		(58.5	)		5,206.9		362.4			8,890.5		260.8		102.3
Corporate		—		—			—		(136.9	)		135.7		20.1		25.9
Total operations	$	5,265.4	$	(58.5	)	$	5,206.9	$	225.5		$	9,026.2	$	280.9	$	128.2
	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2010
U.S. Print and Related Services	$	3,660.6	$	(14.5	)	$	3,646.1	$	343.3		$	6,151.1	$	199.7	$	44.6
International		1,202.1		(24.5	)		1,177.6		76.4			2,062.7		57.8		30.1
Total operating segments		4,862.7		(39.0	)		4,823.7		419.7			8,213.8		257.5		74.7
Corporate		—		—			—		(98.6	)		392.0		15.9		19.8
Total operations	$	4,862.7	$	(39.0	)	$	4,823.7	$	321.1		$	8,605.8	$	273.4	$	94.5

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Derivatives

6 Months Ended

Jun. 30, 2011

Derivatives

Derivatives

15. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities on the Condensed Consolidated Balance Sheets at their respective fair values. Unrealized gains and losses related to derivatives are recorded in other comprehensive income (loss), net of applicable income taxes, or in the Condensed Consolidated Statements of Operations, depending on the purpose for which the derivative is held. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in the Condensed Consolidated Statements of Operations. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge at inception, or fail to meet the criteria thereafter, are recognized currently in the Condensed Consolidated Statements of Operations. At the inception of a hedge transaction, the Company formally documents the hedge relationship and the risk management objective for undertaking the hedge. In addition, the Company assesses both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the Condensed Consolidated Statements of Operations.

The Company is exposed to the impact of foreign currency fluctuations in certain countries in which it operates. The exposure to foreign currency movements is limited in most countries because the operating revenues and expenses of its various subsidiaries and business units are substantially in the local currency of the country in which they operate. To the extent borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange forward contracts and cross-currency swaps to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the implied gains and losses associated with the fair values of foreign currency exchange contracts and cross-currency swaps are generally offset by gains and losses on underlying payables, receivables and net investments in foreign subsidiaries. The Company does not use derivative financial instruments for trading or speculative purposes.

The Company has entered into foreign exchange forward contracts in order to manage the currency exposure of certain receivables and liabilities. The foreign exchange forward contracts were not designated as hedges, and accordingly, the fair value gains or losses from these foreign currency derivatives are recognized currently in the Condensed Consolidated Statements of Operations, generally offsetting the foreign exchange gains or losses on the exposures being managed. The aggregate notional value of the forward contracts at June 30, 2011 and December 31, 2010 was $102.5 million and $100.9 million, respectively. The fair values of foreign exchange forward contracts were determined to be Level 2 under the fair value hierarchy and are valued using market exchange rates.

On April 9, 2010, the Company entered into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements effectively changed the interest rate on $600 million of its fixed-rate senior notes to floating rate LIBOR plus a basis point spread. These interest rate swaps, with a notional value of $600 million, are designated as fair value hedges against changes in the value of the Company's 4.95% senior notes due April 1, 2014, which are attributable to changes in the benchmark interest rate. The Company evaluates the credit value adjustments of the interest rate swap agreements, which take into account the possibility of counterparty and the Company's own default, on at least a quarterly basis. The Company's agreements with each of its counterparties contain a provision where the Company could be declared in default on its derivative obligations if it either defaults or, in certain cases, is capable of being declared in default on any of its indebtedness greater than specified thresholds. These agreements also contain a provision where the Company could be declared in default subsequent to a merger or restructuring type event if the creditworthiness of the resulting entity is materially weaker. The fair values of the interest rate swaps were determined to be Level 2 under the fair value hierarchy and are valued using market interest rates.

At June 30, 2011 and December 31, 2010, the total fair value of the Company's forward contracts, which were the only derivatives not designated as hedges, and fair value hedges and the accounts on the Condensed Consolidated Balance Sheets in which the fair value amounts are included are shown in the table below:

	June 30, 2011		December 31, 2010
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.3	$	0.5
Accrued liabilities		0.3		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	20.2	$	16.8

The pre-tax gains (losses) related to derivatives not designated as hedges recognized in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2011 and 2010 are shown in the table below:

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of Operations	Three months ended June  30,					Six months ended June  30,
		2011		2010			2011		2010
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)
Total gain (loss) recognized in the condensed consolidated statements of operations	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)

For derivatives designated as fair value hedges, the pre-tax gains (losses) related to the hedged items, attributable to changes in the hedged benchmark interest rate, and the offsetting gain or loss on the related interest rate swaps for the three and six months ended June 30, 2011 and 2010 are shown in the table below:

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of  Operations	Three months ended June  30,						Six months ended June  30,
		2011			2010			2011			2010
Fair Value Hedges
Interest rate swaps	Investment and other income (expense)	$	7.2		$	14.2		$	3.3		$	14.2
Hedged items	Investment and other income (expense)		(6.7	)		(13.0	)		(2.6	)		(13.0	)
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other income (expense)	$	0.5		$	1.2		$	0.7		$	1.2

The Company also recognized a net reduction to interest expense of $2.5 million and $5.1 million for the three and six months ended June 30, 2011, respectively, and $2.2 million in each respective period for the three and six months ended June 30, 2010, related to the Company's fair value hedges, which includes interest accruals on the derivatives and amortization of the basis in the hedged items.

The pre-tax losses related to derivatives designated as cash flow hedges for the three months ended June 30, 2011 and 2010 are shown in the table below:

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)	Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010			2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—	Interest expense—net	$	(0.1	)	$	(0.1	)	Loss on debt extinguishment	$	(0.5	)	$	—

The pre-tax losses related to derivatives designated as cash flow hedges for the six months ended June 30, 2011 and 2010 are shown in the table below:

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)		Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010				2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—		Interest expense—net	$	(0.3	)	$	(0.3	)	Loss on debt extinguishment	$	(0.5	)	$	—

Terminated Derivatives

In May 2005, the Company terminated its interest rate lock agreements which were designated as cash flow hedges and used to hedge against fluctuations in interest rates. This termination resulted in a loss of $12.9 million recorded in accumulated other comprehensive loss, which was being recognized in interest expense over the term of the hedged forecasted interest payments. On June 15, 2011, the Company repurchased $100 million of the 5.50% senior notes due May 15, 2015 which were hedged as part of the interest rate lock agreements. Pre-tax losses of $0.5 million were reclassified from accumulated other comprehensive loss to loss on debt extinguishment in the Consolidated Statement of Operations as a result of the change in expected forecasted interest payments. In addition, during the third quarter of 2009, the Company repurchased $174.2 million of the 4.95% senior notes due May 15, 2010 which were also hedged as part of the interest rate lock agreements. Pre-tax losses of $2.7 million were reclassified from accumulated other comprehensive loss to loss on debt extinguishment in the Consolidated Statement of Operations as a result of the change in expected forecasted interest payments. At June 30, 2011, a balance of $1.2 million remained in accumulated other comprehensive loss, of which $0.3 million is expected to be reclassified to earnings over the next twelve months.

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Condensed Consolidated Balance Sheets (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 363.0	$ 519.1
Receivables, less allowance for doubtful accounts of $64.9 in 2011 (2010-$71.0)	2,011.0	1,922.9
Income taxes receivable	68.0	49.3
Inventories (Note 3)	580.0	560.6
Prepaid expenses and other current assets	145.7	115.4
Total current assets	3,167.7	3,167.3
Property, plant and equipment-net (Note 4)	2,031.5	2,138.7
Goodwill (Note 5)	2,619.5	2,526.8
Other intangible assets-net (Note 5)	727.3	775.0
Other noncurrent assets	480.2	475.4
Total assets	9,026.2	9,083.2
LIABILITIES
Accounts payable	924.7	939.8
Accrued liabilities	815.8	902.2
Short-term and current portion of long-term debt (Note 14)	649.6	131.4
Total current liabilities	2,390.1	1,973.4
Long-term debt (Note 14)	3,427.7	3,398.6
Pension liability	530.0	533.0
Postretirement benefits	220.9	287.4
Deferred income taxes	190.7	174.5
Other noncurrent liabilities	460.1	470.9
Total liabilities	7,219.5	6,837.8
Commitments and contingencies (Note 13)
RR Donnelley shareholders' equity
Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None
Common stock, $1.25 par value Authorized: 500.0 shares; Issued: 243.0 shares in 2011 and 2010	303.7	303.7
Additional paid-in-capital	2,779.6	2,907.0
Retained earnings	608.7	670.2
Accumulated other comprehensive loss	(375.7)	(490.4)
Treasury stock, at cost, 55.2 shares in 2011 (2010-36.4 shares)	(1,528.9)	(1,166.2)
Total RR Donnelley shareholders' equity	1,787.4	2,224.3
Noncontrolling interests	19.3	21.1
Total equity	1,806.7	2,245.4
Total liabilities and equity	$ 9,026.2	$ 9,083.2

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Derivatives (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Derivatives

Derivatives Not Designated As Hedges

	June 30, 2011		December 31, 2010
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.3	$	0.5
Accrued liabilities		0.3		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	20.2	$	16.8

Pre-Tax Gains (Losses) Related To Derivatives Not Designated As Hedges

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of Operations	Three months ended June  30,					Six months ended June  30,
		2011		2010			2011		2010
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)
Total gain (loss) recognized in the condensed consolidated statements of operations	Selling, general and administrative expenses	$	0.1	$	(8.5	)	$	1.7	$	(4.4	)

Fair Value Hedges Pre-Tax Gain (Loss) Related To The Hedged Items Attributable To Changes In The Hedged Benchmark Rate Offsetting Gain Or Loss On Related Interest Rate Swaps

	Classification of Gain (Loss) Recognized in the Condensed Consolidated Statements of  Operations	Three months ended June  30,						Six months ended June  30,
		2011			2010			2011			2010
Fair Value Hedges
Interest rate swaps	Investment and other income (expense)	$	7.2		$	14.2		$	3.3		$	14.2
Hedged items	Investment and other income (expense)		(6.7	)		(13.0	)		(2.6	)		(13.0	)
Total gain recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other income (expense)	$	0.5		$	1.2		$	0.7		$	1.2

Pre-Tax Gains (Losses) Related To Derivates Designed As Hedges

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)	Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010			2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—	Interest expense—net	$	(0.1	)	$	(0.1	)	Loss on debt extinguishment	$	(0.5	)	$	—

	Loss Recognized in OCI (Effective Portion)				Classification of Loss Reclassified from AOCI into Income (Effective Portion)		Loss Reclassified from AOCI into Income (Effective Portion)						Classification of Loss Recognized in Income (Ineffective Portion)	Loss Recognized in Income (Ineffective Portion)
	2011		2010				2011			2010				2011			2010
Cash Flow Hedges
Interest rate lock	$	—	$	—		Interest expense—net	$	(0.3	)	$	(0.3	)	Loss on debt extinguishment	$	(0.5	)	$	—

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Goodwill And Other Intangible Assets (Components Of Other Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011
Amount	$ 4.3
Weighted Average Amortization Period
Trademarks, Licenses And Agreements [Member]
Amount	3.8
Weighted Average Amortization Period	4.5
Trade Names [Member]
Amount	$ 0.5
Weighted Average Amortization Period	5.0

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Share-Based Compensation (Black-Scholes-Merton Option Pricing Model) (Details)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Share-Based Compensation
Expected volatility	36.69%	35.61%
Risk-free interest rate	2.54%	2.75%
Expected life (years)	6.25	6.25
Expected dividend yield	4.57%	4.19%

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Debt (Components Of Debt) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended						6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended		6 Months Ended			12 Months Ended		6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 15, 2011	Sep. 30, 2009	Jun. 30, 2011	Dec. 31, 2010	May 17, 2011 Revised Interest Rate Stated Percentage [Member] 11.25% Senior Notes Due February 1, 2019 [Member]	Jun. 30, 2011 Credit Facility Borrowings [Member]	Dec. 31, 2010 Credit Facility Borrowings [Member]	Jun. 30, 2011 5.625% Senior Notes Due January 15, 2012 [Member]	Dec. 31, 2010 5.625% Senior Notes Due January 15, 2012 [Member]	Jun. 30, 2011 4.95% Senior Notes Due April 1, 2014 [Member]	Dec. 31, 2010 4.95% Senior Notes Due April 1, 2014 [Member]	Jun. 30, 2011 5.50% Senior Notes Due May 15, 2015 [Member]	Jun. 30, 2010 5.50% Senior Notes Due May 15, 2015 [Member]	Dec. 31, 2010 5.50% Senior Notes Due May 15, 2015 [Member]	Jun. 30, 2011 8.60% Senior Notes Due August 15, 2016 [Member]	Dec. 31, 2010 8.60% Senior Notes Due August 15, 2016 [Member]	Jun. 30, 2011 6.125% Senior Notes Due January 15, 2017 [Member]	Jun. 30, 2010 6.125% Senior Notes Due January 15, 2017 [Member]	Dec. 31, 2010 6.125% Senior Notes Due January 15, 2017 [Member]	Jun. 30, 2011 7.25% Senior Notes Due May 15, 2018 [Member]	Dec. 31, 2010 7.25% Senior Notes Due May 15, 2018 [Member]	Jun. 01, 2011 7.25% Senior Notes Due May 15, 2018 [Member]	Jun. 30, 2011 11.25% Senior Notes Due February 1, 2019 [Member]		Jun. 30, 2010 11.25% Senior Notes Due February 1, 2019 [Member]	Dec. 31, 2010 11.25% Senior Notes Due February 1, 2019 [Member]		Jun. 30, 2011 7.625% Senior Notes Due June 15, 2020 [Member]	Dec. 31, 2010 7.625% Senior Notes Due June 15, 2020 [Member]	Jun. 30, 2011 8.875% Debentures Due April 15, 2021 [Member]	Dec. 31, 2010 8.875% Debentures Due April 15, 2021 [Member]	Jun. 30, 2011 6.625% Debentures Due April 15, 2029 [Member]	Dec. 31, 2010 6.625% Debentures Due April 15, 2029 [Member]	Jun. 30, 2011 8.820% Debentures Due April 15, 2031 [Member]	Dec. 31, 2010 8.820% Debentures Due April 15, 2031 [Member]	Jun. 30, 2011 Other, Including Capital Leases [Member]	Dec. 31, 2010 Other, Including Capital Leases [Member]
Credit facility borrowings						$ 475.0	$ 120.0
Senior notes								158.6	158.6	599.4	599.2	399.7		499.6	346.4	346.0	522.7		622.0	600.0								400.0	400.0
Debentures																							183.8	[1]		400.0	[1]			80.9	80.9	199.3	199.3	69.0	68.9
Other, including capital leases																																				42.5	35.5
Total debt			4,077.3	3,530.0
Less: current portion			(649.6)	(131.4)
Long-term debt			$ 3,427.7	$ 3,398.6
Interest rate	5.50%	4.95%			11.75%			5.625%	5.625%	4.95%	4.95%	5.50%		5.50%	8.60%	8.60%	6.125%		6.125%	7.25%	7.25%	7.25%	11.25%			11.25%		7.625%	7.625%	8.875%	8.875%	6.625%	6.625%	8.82%	8.82%
Maturity date	May 15, 2015	May 15, 2010						Jan. 15, 2012	Jan. 15, 2012	Apr. 01, 2014	Apr. 01, 2014	May 15, 2015	May 15, 2015	May 15, 2015	Aug. 15, 2016	Aug. 15, 2016	Jan. 15, 2017	Jan. 15, 2017	Jan. 15, 2017	May 15, 2018	May 15, 2018		Feb. 01, 2019		Feb. 01, 2019	Feb. 01, 2019		Jun. 15, 2020	Jun. 15, 2020	Apr. 15, 2021	Apr. 15, 2021	Apr. 15, 2029	Apr. 15, 2029	Apr. 15, 2031	Apr. 15, 2031

[1] On May 17, 2011, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75%, as a result of a downgrades in the ratings of the notes by the rating agencies.

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Property, Plant And Equipment (Components Of Company's Property, Plant And Equipment) (Details) (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Property, Plant And Equipment
Land	$ 109.9	$ 111.4
Buildings	1,213.6	1,197.9
Machinery and equipment	6,174.8	6,098.8
Property, plant and equipment - gross cost	7,498.3	7,408.1
Less: Accumulated depreciation	(5,466.8)	(5,269.4)
Total	$ 2,031.5	$ 2,138.7

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Goodwill And Other Intangible Assets (Narrative) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Goodwill And Other Intangible Assets
Amortization expense for other intangible assets	$ 28.8	$ 24.3	$ 57.3	$ 49.0

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Employee Benefits (Narrative) (Details) (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Employee Benefits
Reduction in accumulated postretirement benefit obligation	$ 81.5
Postretirement benefits liability	$ 220.9	$ 287.4

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurement

Assets Measured At Fair Value On A Nonrecurring Basis

	Impairment Charge		Fair Value Measurement (Level 3)		June 30, 2011 Net Book Value
Long-lived assets held and used (1)	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal (2)		18.2		1.3		1.3
Total	$	32.3	$	69.8	$	67.1

(1) Long-lived assets held and used with a carrying amount of $82.6 million were written down to their fair value of $68.5 million, resulting in an impairment charge of $14.1 million for the six months ended June 30, 2011. The fair values used for measuring impairment of land, buildings, machinery and equipment and leasehold improvements were determined using Level 3 inputs. These fair values were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.

(2) Long-lived assets held for sale or disposal with a carrying amount of $19.5 million were written down to their fair value of $1.3 million, resulting in an impairment charge of $18.2 million. The fair values of the land, buildings and machinery and equipment classified as held for sale or disposal were determined using Level 3 inputs and estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions.