Equity

9 Months Ended

Sep. 30, 2011

Equity [Abstract]

Equity

9. Equity

The following table summarizes the Company's equity activity for the nine months ended September 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		204.1			1.4			205.5
Other comprehensive income		16.3			0.3			16.6
Share-based compensation		22.5			—			22.5
Withholdings for share-based awards and other		(6.4	)		—			(6.4	)
Cash dividends paid		(156.5	)		—			(156.5	)
Payments for the acquisition of common stock		(500.0	)		—			(500.0	)
Distributions to noncontrolling interests		—			(3.2	)		(3.2	)
Balance at September 30, 2011	$	1,804.3		$	19.6		$	1,823.9

The following table summarizes the Company's equity activity for the nine months ended September 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)		194.7			(3.7	)		191.0
Other comprehensive income		13.0			0.2			13.2
Share-based compensation		22.4			—			22.4
Withholdings for share-based awards and other		(1.6	)		—			(1.6	)
Cash dividends paid		(160.7	)		—			(160.7	)
Distributions to noncontrolling interests		—			(1.6	)		(1.6	)
Balance at September 30, 2010	$	2,201.8		$	21.9		$	2,223.7

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 may 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 during the fourth quarter of 2011. 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 September 30, 2011, based on the volume weighted average price of the Company's common stock of $17.62, the investment bank would be required to deliver an additional 8.4 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 September 30, 2011, the $100 million holdback was recorded as a reduction in additional paid-in capital in the Condensed Consolidated Balance Sheet.