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, 2012

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 smaller reporting company. See the 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 27, 2012, 180.3 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, 2012

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, 2012 and December 31, 2011		3
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2011		4
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011		5
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011		6
Notes to Condensed Consolidated Financial Statements		7
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations		30
Item 3: Quantitative and Qualitative Disclosures About Market Risk		54
Item 4: Controls and Procedures		54
PART II
OTHER INFORMATION		55
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds		55
Item 4: Mine Safety Disclosures		55
Item 5: Other Information		55
Item 6: Exhibits		57
Signatures		61

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 share data)

(UNAUDITED)

	June 30, 2012			December 31, 2011
ASSETS
Cash and cash equivalents	$	369.0		$	449.7
Receivables, less allowances for doubtful accounts of $50.0 in 2012 (2011—$62.6)		1,944.9			1,844.2
Income taxes receivable		25.9			32.4
Inventories (Note 3)		505.0			510.9
Prepaid expenses and other current assets		136.4			131.4
Total current assets		2,981.2			2,968.6
Property, plant and equipment—net (Note 4)		1,718.9			1,854.6
Goodwill (Note 5)		2,218.4			2,222.1
Other intangible assets—net (Note 5)		542.5			590.3
Other noncurrent assets		638.8			646.1
Total assets	$	8,099.8		$	8,281.7
LIABILITIES
Accounts payable	$	946.9		$	1,063.3
Accrued liabilities		765.2			817.0
Short-term and current portion of long-term debt (Note 14)		343.0			243.7
Total current liabilities		2,055.1			2,124.0
Long-term debt (Note 14)		3,418.4			3,416.8
Pension liabilities		992.5			1,076.3
Postretirement benefits		227.5			227.3
Other noncurrent liabilities		326.6			375.1
Total liabilities		7,020.1			7,219.5
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 2012 and 2011		303.7			303.7
Additional paid-in-capital		2,828.1			2,888.7
Retained earnings		375.3			342.4
Accumulated other comprehensive loss		(881.2	)		(863.3	)
Treasury stock, at cost, 62.6 shares in 2012 (2011—64.5 shares)		(1,565.2	)		(1,628.8	)
Total RR Donnelley shareholders’ equity		1,060.7			1,042.7
Noncontrolling interests		19.0			19.5
Total equity		1,079.7			1,062.2
Total liabilities and equity	$	8,099.8		$	8,281.7

(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,
	2012		2011			2012		2011
Net sales
Products	$	2,189.7	$	2,356.9		$	4,386.2	$	4,623.3
Services		338.9		266.5			667.3		583.6
Total net sales		2,528.6		2,623.4			5,053.5		5,206.9
Products cost of sales (exclusive of depreciation and amortization)		1,689.6		1,777.2			3,392.5		3,504.0
Services cost of sales (exclusive of depreciation and amortization)		244.3		204.4			486.4		433.8
Selling, general and administrative expenses (exclusive of depreciation and amortization)		275.9		309.3			559.4		636.2
Restructuring and impairment charges-net (Note 6)		34.0		75.7			84.0		126.5
Depreciation and amortization		120.9		140.7			245.9		280.9
Total operating expenses		2,364.7		2,507.3			4,768.2		4,981.4
Income from operations		163.9		116.1			285.3		225.5
Interest expense-net		63.6		61.3			124.3		119.2
Investment and other (income) expense-net		4.8		(10.0	)		3.6		(9.8	)
Loss on debt extinguishment		—		68.6			12.1		68.6
Earnings (loss) before income taxes		95.5		(3.8	)		145.3		47.5
Income tax expense (benefit)		6.5		(16.3	)		18.4		0.7
Net earnings		89.0		12.5			126.9		46.8
Less: Income attributable to noncontrolling interests		0.2		0.3			0.7		0.7
Net earnings attributable to RR Donnelley common shareholders	$	88.8	$	12.2		$	126.2	$	46.1
Net earnings per share attributable to RR Donnelley common shareholders (Note 10):
Basic net earnings per share	$	0.49	$	0.06		$	0.70	$	0.23
Diluted net earnings per share	$	0.49	$	0.06		$	0.69	$	0.23
Dividends declared per common share	$	0.26	$	0.26		$	0.52	$	0.52
Weighted average number of common shares outstanding:
Basic		180.7		196.7			180.1		201.9
Diluted		181.8		199.5			181.9		204.5

(See Notes to Condensed Consolidated Financial Statements)

4

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(UNAUDITED)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Net earnings	$	89.0		$	12.5	$	126.9		$	46.8
Other comprehensive income (loss), net of tax (Note 11):
Translation adjustments		(61.6	)		26.1		(19.8	)		52.2
Adjustment for net periodic pension and postretirement benefit cost		0.8			55.5		1.5			62.2
Change in fair value of derivatives		0.1			0.4		0.4			0.5
Other comprehensive income (loss)		(60.7	)		82.0		(17.9	)		114.9
Comprehensive income		28.3			94.5		109.0			161.7
Less: comprehensive income attributable to noncontrolling interests		0.1			0.5		0.7			0.9
Comprehensive income attributable to RR Donnelley common shareholders	$	28.2		$	94.0	$	108.3		$	160.8

(See Notes to Condensed Consolidated Financial Statements)

5

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(UNAUDITED)

	Six Months Ended June 30,
	2012			2011
OPERATING ACTIVITIES
Net earnings	$	126.9		$	46.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment charges		18.0			32.4
Depreciation and amortization		245.9			280.9
Provision for doubtful accounts receivable		2.4			7.5
Share-based compensation		14.8			16.4
Deferred taxes		11.5			(28.6	)
Changes in uncertain tax positions		(23.9	)		(6.1	)
(Gain) loss on sale of investments and other assets—net		3.9			(12.8	)
Net pension and postretirement benefits (income) expense		(23.7	)		37.3
Loss on debt extinguishment		12.1			68.6
Other		18.6			15.1
Changes in operating assets and liabilities—net of acquisitions:
Accounts receivable—net		(110.0	)		(75.3	)
Inventories		3.7			(13.2	)
Prepaid expenses and other current assets		(2.3	)		(14.8	)
Accounts payable		(112.5	)		(30.4	)
Income taxes payable and receivable		(5.7	)		(22.8	)
Accrued liabilities and other		(113.2	)		(97.7	)
Pension and postretirement benefits contributions		(56.6	)		(35.2	)
Net cash provided by operating activities		9.9			168.1
INVESTING ACTIVITIES
Capital expenditures		(93.7	)		(128.2	)
Acquisitions of businesses, net of cash acquired		0.5			(75.4	)
Proceeds from return of capital and sale of investments and other assets		5.9			2.1
Purchases of other investments		(2.5	)		(7.0	)
Transfers from restricted cash—net		(0.1	)		0.1
Net cash used in investing activities		(89.9	)		(208.4	)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		450.0			600.0
Net change in short-term debt		(0.6	)		4.6
Payments of current maturities and long-term debt		(621.7	)		(481.6	)
Net proceeds of credit facility borrowings		260.0			355.0
Proceeds from termination of interest rate swaps		11.0			—
Debt issuance costs		(7.5	)		(9.6	)
Issuance of common stock		4.9			7.1
Acquisition of common stock		—			(500.0	)
Dividends paid		(93.3	)		(107.7	)
Distributions to noncontrolling interests		(1.2	)		(2.2	)
Net cash provided by (used in) financing activities		1.6			(134.4	)
Effect of exchange rate on cash flows and cash equivalents		(2.3	)		18.6
Net decrease in cash and cash equivalents		(80.7	)		(156.1	)
Cash and cash equivalents at beginning of period		449.7			519.1
Cash and cash equivalents at end of period	$	369.0			363.0

(See Notes to Condensed Consolidated Financial Statements)

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)

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 (see paragraph below for discussion of an other than normal adjustment) 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, 2011 filed with the SEC on February 22, 2012. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2012. 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.

During the first quarter of 2012, the Company identified and recognized $19.8 million to correct an over-accrual for rebates owed to certain office products customers, which understated accounts receivable and net sales during the years 2008 through 2011. Following qualitative and quantitative review, the Company concluded that the over-accrual was not material to any prior period and is not expected to be material to the full year 2012 or to the trend of annual operating results.

2. Acquisitions

For the three and six months ended June 30, 2012, the Company recorded $0.5 million and $0.8 million of acquisition-related expenses, respectively, associated with acquisitions contemplated, within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

2011 Acquisitions

On November 21, 2011, the Company acquired StratusGroup, Inc. (“Stratus”), a full service manufacturer of custom pressure sensitive label and paperboard packaging products for health and beauty, food, beverage and other segments. Stratus’ decorative labeling and paperboard resources complement the Company’s prime label, corrugated and other global packaging capabilities. The purchase price for Stratus was $29.0 million, net of cash acquired of $0.1 million. Stratus’ operations are included in the U.S. Print and Related Services segment.

On September 6, 2011, the Company acquired Genesis Packaging & Design Inc. (“Genesis”), a full service provider of custom packaging, including designing, printing, die cutting, finishing and assembling. The addition of Genesis complements the Company’s existing packaging and merchandising business with a centrally located facility and enhanced ability to service customers in a range of industries. The purchase price for Genesis was $10.1 million. Genesis’ operations are included in the U.S. Print and Related Services segment.

On August 16, 2011, the Company acquired LibreDigital, Inc. (“LibreDigital”), a leading provider of digital content distribution, e-reading software, content conversion, data analytics and business intelligence services. LibreDigital’s capabilities enable the Company to offer a broader selection of digital content creation and

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)

delivery services to publishing, retail, e-reader provider and other customers. The purchase price for LibreDigital was $19.5 million, net of cash acquired of $0.1 million. LibreDigital’s operations are included in the U.S. Print and Related Services segment.

On August 15, 2011, the Company acquired Sequence Personal LLC (“Sequence”), a provider of proprietary software that enables readers to select relevant content to be digitally produced as specialized publications. Sequence’s software offers publishers and other customers a practical way to increase revenues by allowing advertisers to select unique ad selection criteria for targeted delivery. The purchase price for Sequence, which includes the Company’s estimate of contingent consideration, was $14.6 million, net of cash acquired of $0.1 million. A former equity holder of Sequence may receive contingent consideration in the form of cash payments of up to $14.0 million, subject to Sequence achieving certain milestones related to volume or revenue in 2013 and 2014. As of the acquisition date, the Company estimated the fair value of the contingent consideration to be $6.8 million using a probability weighting of the potential payouts. The Company has subsequently revised the estimated fair value of the contingent consideration as the result of a decrease in the likelihood of achieving the 2013 and 2014 milestones. The adjustment to the fair value of the contingent consideration was recognized in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. Subsequent changes in the estimated contingent consideration will also be recognized in the Condensed Consolidated Statement of Operations. Sequence’s operations are included in the U.S. Print and Related Services segment.

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. 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. 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 was reflected in investment and other (income) expense in the Consolidated Statements of Operations for the year ended December 31, 2011. 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. The inputs used to determine the fair value of the previously held equity investment were determined to be Level 3 under the fair value hierarchy. 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 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 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. As a result, the additions of these businesses have improved the Company’s ability to serve customers and reduced redundant management, support and manufacturing costs.

For the three and six months ended June 30, 2011, the Company recorded $0.9 million and $1.3 million of acquisition-related expenses, respectively, associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

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 Stratus, Genesis, LibreDigital, Sequence, Helium and Journalism Online 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 and contingent consideration over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The tax deductible goodwill related to these acquisitions was $46.9 million. Based on the valuations, the final purchase price allocations for these acquisitions were as follows:

Accounts receivable	$	6.0
Inventories		2.3
Prepaid expenses and other current assets		0.4
Property, plant and equipment and other long-term assets		16.8
Amortizable intangible assets		16.2
Goodwill		117.8
Accounts payable and accrued liabilities		(8.2	)
Other noncurrent liabilities		(2.9	)
Deferred taxes-net		14.2
Total purchase price-net of cash acquired		162.6
Less: fair value of Company’s previously held investments in Helium		13.9
Less: fair value of contingent consideration		6.8
Net cash paid	$	141.9

The fair values of property, plant and equipment, amortizable intangible assets, contingent consideration and goodwill associated with the acquisitions of Stratus, Genesis, LibreDigital, Sequence, Helium and Journalism Online were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions. Customer relationships intangible asset values were estimated based on expected future cash flows discounted using an estimated weighted average cost of capital. Estimates of future customer attrition rates were considered in estimating the expected future cash flows from customer relationships. Tradename intangible asset values were 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, 2012 and 2011 presents the combined results of operations of the Company and the 2011 acquisitions described above, as if the acquisitions had occurred as of January 1, 2011.

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)

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 periods 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,
	2012		2011		2012		2011
Net sales	$	2,528.6	$	2,635.2	$	5,053.5	$	5,230.0
Net earnings attributable to RR Donnelley common shareholders		88.8		1.6		126.5		42.0
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.01	$	0.70	$	0.21
Diluted	$	0.49	$	0.01	$	0.70	$	0.21

The unaudited pro forma financial information for the three months ended June 30, 2012 and 2011 includes $22.1 million and $29.3 million, respectively, for the amortization of purchased intangibles. Amortization of purchased intangibles for the six months ended June 30, 2012 and 2011 was $46.4 million and $58.2 million, respectively. The unaudited pro forma financial information includes restructuring and impairment charges from operations of $34.0 million and $75.7 million for the three months ended June 30, 2012 and 2011, respectively. Restructuring and impairment charges for the six months ended June 30, 2012 and 2011 were $84.0 million and $126.9 million, respectively. Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
Depreciation and amortization of purchased assets, pre-tax	$	—		$	(0.8	)	$	—		$	(1.7	)
Acquisition-related expenses, pre-tax		0.1			0.2			0.1			0.5
Restructuring and impairment charges, pre-tax		—			—			—			(0.4	)
Inventory fair value adjustment, pre-tax		—			—			0.3			(0.3	)
Other pro forma adjustments, pre-tax		—			(10.3	)		0.1			(1.1	)
Income taxes		(0.1	)		1.3			(0.2	)		2.9

3. Inventories

	June 30, 2012			December 31, 2011
Raw materials and manufacturing supplies	$	232.9		$	218.0
Work in process		154.9			171.2
Finished goods		213.6			218.1
LIFO reserve		(96.4	)		(96.4	)
Total	$	505.0		$	510.9

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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)

4. Property, Plant and Equipment

	June 30, 2012			December 31, 2011
Land	$	104.0		$	107.4
Buildings		1,178.2			1,173.2
Machinery and equipment		6,000.8			6,054.4
		7,283.0			7,335.0
Less: Accumulated depreciation		(5,564.1	)		(5,480.4	)
Total	$	1,718.9		$	1,854.6

During the three and six months ended June 30, 2012, depreciation expense was $92.6 million and $188.0 million, respectively. During the three and six months ended June 30, 2011, depreciation expense was $106.1 million and $212.3 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 $24.9 million and $20.2 million at June 30, 2012 and December 31, 2011, respectively. These assets were included in other current assets in the Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011 at the lower of their historical net book value and their estimated fair value, less estimated costs to sell.

5. Goodwill and Other Intangible Assets

Goodwill at June 30, 2012 and December 31, 2011 was as follows:

	U.S. Print and Related  Services			International			Total
Net book value as of December 31, 2011
Goodwill	$	3,242.6		$	1,278.4		$	4,521.0
Accumulated impairment losses		(1,209.5	)		(1,089.4	)		(2,298.9	)
Total		2,033.1			189.0			2,222.1
Foreign exchange and other adjustments		(0.6	)		(3.1	)		(3.7	)
Net book value as of June 30, 2012
Goodwill		3,242.0			1,274.1			4,516.1
Accumulated impairment losses		(1,209.5	)		(1,088.2	)		(2,297.7	)
Total	$	2,032.5		$	185.9		$	2,218.4

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)

The components of other intangible assets at June 30, 2012 and December 31, 2011 were as follows:

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationship intangibles	$	1,161.0	$	(654.2	)	$	506.8	$	1,164.4	$	(613.6	)	$	550.8
Patents		98.3		(97.9	)		0.4		98.3		(95.8	)		2.5
Trademarks, licenses and agreements		28.7		(25.2	)		3.5		28.7		(24.4	)		4.3
Trade names		23.9		(10.2	)		13.7		23.9		(9.3	)		14.6
Total amortizable intangible assets		1,311.9		(787.5	)		524.4		1,315.3		(743.1	)		572.2
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total other intangible assets	$	1,330.0	$	(787.5	)	$	542.5	$	1,333.4	$	(743.1	)	$	590.3

Amortization expense for other intangible assets was $22.1 million and $28.8 million for the three months ended June 30, 2012 and 2011, respectively, and $46.4 million and $57.3 million for the six months ended June 30, 2012 and 2011, respectively. The following table outlines the estimated annual amortization expense related to other intangible assets as of June 30, 2012:

For the year ending December 31,	Amount
2012	$	89.9
2013		86.6
2014		84.0
2015		76.4
2016		49.1
2017 and thereafter		184.8
Total	$	570.8

6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended June 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2012								Three Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	10.5	$	8.6	$	7.0	$	26.1	$	22.0	$	19.5	$	23.6	$	65.1
International		3.0		0.5		—		3.5		6.7		2.6		0.5		9.8
Corporate		0.3		2.8		1.3		4.4		0.5		0.1		0.2		0.8
Total	$	13.8	$	11.9	$	8.3	$	34.0	$	29.2	$	22.2	$	24.3	$	75.7

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)

For the six months ended June 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2012								Six Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	38.9	$	11.9	$	15.0	$	65.8	$	36.8	$	36.0	$	30.5	$	103.3
International		6.8		1.1		1.0		8.9		14.6		3.4		1.0		19.0
Corporate		4.9		2.8		1.6		9.3		2.6		0.7		0.9		4.2
Total	$	50.6	$	15.8	$	17.6	$	84.0	$	54.0	$	40.1	$	32.4	$	126.5

For the three and six months ended June 30, 2012, the Company recorded net restructuring charges of $13.8 million and $50.6 million, respectively, for employee termination costs for 1,820 employees, of whom 1,578 were terminated as of June 30, 2012. These terminations resulted from the reorganization of sales and administrative functions across all segments, as well as facility closures and the reorganization of certain operations. The facility closures in the six months ended June 30, 2012 included four manufacturing facilities within the U.S. Print and Related Services segment and one manufacturing facility within the International segment. Additionally, the Company incurred lease termination and other restructuring charges of $11.9 million and $15.8 million for the three and six months ended June 30, 2012, respectively. The Company also recorded $8.3 million and $17.6 million of impairment charges primarily related to machinery and equipment associated with the facility closings and other asset disposals for the three and six months ended June 30, 2012, respectively. The fair values of the machinery and equipment 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 current marketplace conditions.

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, for employee termination costs for 1,859 employees, all of whom were terminated as of June 30, 2012. These charges primarily related to the closings of certain facilities and headcount reductions due to the Bowne acquisition. In addition, these charges included the closing of three books and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred multi-employer 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 completed 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 current marketplace conditions.

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)

Restructuring Reserve

Activity impacting the Company’s restructuring reserve for the six months ended June 30, 2012 was as follows:

	December 31, 2011		Restructuring Charges		Foreign Exchange and Other			Cash Paid			June 30, 2012
Employee terminations	$	27.2	$	50.6	$	(0.5	)	$	(37.7	)	$	39.6
Multi-employer pension withdrawal obligations		27.9		0.1		—			(1.2	)		26.8
Lease terminations and other		32.6		15.7		2.4			(17.5	)		33.2
Total	$	87.7	$	66.4	$	1.9		$	(56.4	)	$	99.6

The current portion of restructuring reserves of $55.1 million at June 30, 2012 was included in accrued liabilities, while the long-term portion of $44.5 million at June 30, 2012, primarily related to multi-employer pension plan withdrawal obligations and lease termination costs, was included in other noncurrent liabilities.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June of 2013 and payments on the multi-employer pension plan withdrawal obligations are scheduled to be substantially completed by 2031.

As of June 30, 2012, the restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2026. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to these 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 net pension and postretirement benefits (income) expense for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June 30,
	2012			2011			2012			2011
Pension (income) expense
Service cost	$	1.6		$	21.5		$	3.5		$	42.8
Interest cost		47.4			48.9			94.8			97.0
Expected return on assets		(65.8	)		(67.3	)		(131.6	)		(134.4	)
Amortization, net		6.8			12.8			13.9			25.0
Net pension (income) expense	$	(10.0	)	$	15.9		$	(19.4	)	$	30.4
Postretirement benefits (income) expense
Service cost	$	1.6		$	2.3		$	3.3		$	4.6
Interest cost		4.6			6.2			9.2			12.4
Expected return on assets		(3.4	)		(3.8	)		(6.9	)		(7.6	)
Amortization, net		(4.9	)		(1.3	)		(9.9	)		(2.5	)
Net postretirement benefits (income) expense	$	(2.1	)	$	3.4		$	(4.3	)	$	6.9

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)

On July 6, 2012, the Surface Transportation Extension Act of 2012 (the “Act”) was signed into law. The Act includes certain pension-related provisions designed to stabilize interest rates used to calculate the minimum required annual contributions for defined benefit pension plans. The Company anticipates that provisions in the Act will significantly reduce the minimum required annual contributions related to its defined benefit pension plans over the next few years though these contributions are dependent on many factors, including returns on invested assets and discount rates used to determine pension obligations. The Company expects to make contributions of approximately $165 million to its pension plans and $9 million to its postretirement plans for the full year 2012, of which $51.5 million and $5.1 million, respectively, were made during the six months ended June 30, 2012. The Company estimates that it will make cash contributions totaling approximately $76 million to its pension and postretirement benefit plans in 2013.

On November 2, 2011, the Company announced a freeze on further benefit accruals under all U.S. pension plans as of December 31, 2011. Beginning January 1, 2012, participants ceased earning additional benefits under the plans and no new participants will enter these plans. Additionally, on February 1, 2012, the Company announced a freeze on further benefit accruals under its Canadian pension plans as of March 31, 2012.

The Company recognized expense of $7.3 million and $16.1 million for matching contributions under its reinstated 401(k) match for the three and six months ended June 30, 2012, respectively.

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, restricted stock units and performance share units. The total compensation expense related to all share-based compensation plans was $7.4 million and $14.8 million for the three and six months ended June 30, 2012, respectively. 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.

Stock Options

During the six months ended June 30, 2012 and 2011, the Company granted 1,221,000 and 200,000 stock options, respectively. The fair market value of each stock option award was estimated on the date of grant using the Black-Scholes-Merton option pricing model. The fair market value of the stock options was determined using the following weighted average assumptions:

	2012			2011
Expected volatility		39.71	%		36.69	%
Risk-free interest rate		1.18	%		2.54	%
Expected life (years)		6.25			6.25
Expected dividend yield		5.06	%		4.57	%

The weighted average fair market value of options granted was $2.96 and $4.39 for the six months ended June 30, 2012 and 2011, respectively.

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)

The following table is a summary of the Company’s 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, 2011		3,995		$	20.75		5.9	$	9.5
Granted		1,221			13.22		9.7
Exercised		(197	)		7.09
Cancelled/forfeited/expired		(268	)		29.49
Outstanding at June 30, 2012		4,751		$	18.89		6.7	$	5.1
Exercisable at June 30, 2012		713		$	7.09		6.7	$	3.3

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, 2012 and December 31, 2011, 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 in-the-money options on June 30, 2012 and December 31, 2011. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. There were no options exercised during the three months ended June 30, 2012. Total intrinsic value of options exercised for the six months ended June 30, 2012 was $1.2 million. 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.

Compensation expense related to stock options for the three and six months ended June 30, 2012 was $0.7 million and $1.8 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. As of June 30, 2012, $4.5 million of total unrecognized compensation expense, related to 1.9 million stock options with a weighted average grant date fair market value of $3.04, is expected to be recognized over a weighted average period of 2.6 years.

Restricted Stock Units

Nonvested restricted stock unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		4,989		$	13.94
Granted		1,048			10.53
Vested		(2,617	)		15.25
Forfeited		(84	)		12.91
Nonvested at June 30, 2012		3,336		$	11.86

Compensation expense related to restricted stock units for the three and six months ended June 30, 2012 was $6.2 million and $12.0 million, respectively. 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. As of June 30, 2012, there was $24.6 million of unrecognized compensation expense related to approximately 3.1 million of the total nonvested restricted stock unit awards that are expected to vest over a weighted average period of 2.2 years, with

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)

a weighted average grant date fair market value of $11.79. The fair value of these awards was determined on the date of grant based on the Company’s stock price reduced by the present value of expected dividends through the vesting period.

Performance Share Units

Nonvested performance share unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		235	$	15.54
Granted		233		10.12
Nonvested at June 30, 2012		468	$	12.84

During the six months ended June 30, 2012 and 2011, 233,000 and 235,000 performance share unit awards were granted to certain executive officers, payable upon the achievement of certain established performance targets. The performance periods for the shares awarded during the six months ended June 30, 2012 and 2011 are January 1, 2012 through December 31, 2014 and January 1, 2011 through December 31, 2013, respectively. Distributions under these awards are payable at the end of the performance period in common stock or cash, at the Company’s discretion. The total potential payouts for awards granted during the six months ended June 30, 2012 and 2011 range from 116,500 to 233,000 shares and 117,500 to 235,000 shares, respectively, should certain performance targets be achieved. The fair value of these awards was determined on the date of grant based on the Company’s stock price reduced by the present value of expected dividends through the vesting period. 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 for the awards granted in 2012 and 2011 is currently being recognized based on the maximum estimated payout of 233,000 and 235,000 shares, for each respective period. Compensation expense related to performance share unit awards for the three and six months ended June 30, 2012 was $0.5 million and $1.0 million, respectively. 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, 2012, there was $3.8 million of unrecognized compensation expense related to performance share unit awards, which is expected to be recognized over a weighted average period of 2.0 years.

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)

9. Equity

The following table summarizes the Company’s equity activity for the six months ended June 30, 2012:

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			Total Equity
Balance at December 31, 2011	$	1,042.7		$	19.5		$	1,062.2
Net earnings		126.2			0.7			126.9
Other comprehensive loss		(17.9	)		—			(17.9	)
Share-based compensation		14.8			—			14.8
Issuance of share-based awards, net of withholdings		(11.8	)		—			(11.8	)
Cash dividends paid		(93.3	)		—			(93.3	)
Distributions to noncontrolling interests		—			(1.2	)		(1.2	)
Balance at June 30, 2012	$	1,060.7		$	19.0		$	1,079.7

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

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			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
Issuance of share-based awards, net of withholdings		(6.4	)		—			(6.4	)
Acquisition of common stock		(500.0	)		—			(500.0	)
Cash dividends paid		(107.7	)		—			(107.7	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

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.

As part of the share repurchase program, the Company entered into an accelerated share repurchase agreement (“ASR”) in 2011 with an investment bank under which the Company repurchased $500.0 million of its common stock, receiving an initial delivery of 19.9 million shares on May 10, 2011 and an additional 9.3 million shares on November 17, 2011.

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)

10. Earnings per Share Attributable to RR Donnelley Common Shareholders

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	88.8	$	12.2	$	126.2	$	46.1
Denominator:
Weighted average number of common shares outstanding		180.7		196.7		180.1		201.9
Dilutive options and awards (a)		1.1		2.8		1.8		2.6
Diluted weighted average number of common shares outstanding		181.8		199.5		181.9		204.5
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.06	$	0.70	$	0.23
Diluted	$	0.49	$	0.06	$	0.69	$	0.23
Dividends declared per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a) Dilutive options and awards take into consideration the dilution of certain unvested restricted stock awards, performance share unit awards and unexercised stock option awards. For the three and six months ended June 30, 2012, restricted stock units of 2.5 million and 2.3 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2012, performance share units of 0.5 million were excluded as the performance targets upon which issuance of these shares is contingent had not yet been achieved as of the end of the current period. For the three and six months ended June 30, 2012, options to purchase 4.5 million shares and 4.2 million shares, respectively, were anti-dilutive because the option exercise price exceeded the fair value of the stock.

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 and options to purchase 3.5 million shares were anti-dilutive for both periods as the option exercise price exceeded the fair value of the stock.

As discussed in Note 9, during 2011 the Company entered into an ASR with an investment bank under which the Company repurchased $500.0 million of its common stock. Both the initial and final delivery of shares resulted in a reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted net earnings per share.

11. Comprehensive Income

Income tax expense allocated to each component of other comprehensive income (loss) for the three and six months ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30, 2012								Six Months Ended June 30, 2012
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(61.6	)	$	—	$	(61.6	)	$	(19.8	)	$	—	$	(19.8	)
Adjustment for net periodic pension and postretirement benefit cost		2.0			1.2		0.8			3.6			2.1		1.5
Change in fair value of derivatives		0.1			—		0.1			0.6			0.2		0.4
Other comprehensive loss	$	(59.5	)	$	1.2	$	(60.7	)	$	(15.6	)	$	2.3	$	(17.9	)

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)

	Three Months Ended June 30, 2011						Six Months Ended June 30, 2011
	Before Tax Amount		Income Tax Expense		Net of Tax Amount		Before Tax Amount		Income Tax Expense		Net of Tax Amount
Translation adjustments	$	26.1	$	—	$	26.1	$	52.2	$	—	$	52.2
Adjustment for net periodic pension and postretirement benefit cost		91.4		35.9		55.5		102.1		39.9		62.2
Change in fair value of derivatives		0.7		0.3		0.4		0.8		0.3		0.5
Other comprehensive income	$	118.2	$	36.2	$	82.0	$	155.1	$	40.2	$	114.9

12. Segment Information

The Company operates primarily in the printing industry, with related products and service offerings designed to offer customers complete solutions for communicating their messages to target audiences. The Company’s reportable segments reflect the management reporting structure of the organization and the manner in which the chief operating decision-maker regularly assesses information for decision-making purposes, including the allocation of resources. The Company’s segments and their 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 logistics, premedia, print management and other print related 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, manuals, statement printing, premedia and logistics services. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management services through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia.

Corporate

Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans are included in Corporate and not allocated to operating segments. Corporate also 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.

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)

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, 2012
U.S. Print and Related Services	$	1,856.4	$	(10.4	)	$	1,846.0	$	165.7		$	83.3	$	27.3
International		707.5		(24.9	)		682.6		42.0			27.1		6.9
Total operating segments		2,563.9		(35.3	)		2,528.6		207.7			110.4		34.2
Corporate		—		—			—		(43.8	)		10.5		14.2
Total operations	$	2,563.9	$	(35.3	)	$	2,528.6	$	163.9		$	120.9	$	48.4

	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			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2012
U.S. Print and Related Services	$	3,747.1	$	(19.7	)	$	3,727.4	$	304.9		$	5,586.9	$	170.9	$	54.4
International		1,371.5		(45.4	)		1,326.1		72.6			2,191.5		54.6		18.0
Total operating segments		5,118.6		(65.1	)		5,053.5		377.5			7,778.4		225.5		72.4
Corporate		—		—			—		(92.2	)		321.4		20.4		21.3
Total operations	$	5,118.6	$	(65.1	)	$	5,053.5	$	285.3		$	8,099.8	$	245.9	$	93.7

	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

Restructuring and impairment charges by segment for the three and six months ended June 30, 2012 and 2011 are described in Note 6.

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)

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 nine active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate eight 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. 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. However, 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 effect on the Company’s consolidated 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 effect on the Company’s consolidated results of operations, financial position or cash flows.

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)

14. Debt

The Company’s debt consists of the following:

	June 30, 2012			December 31, 2011
Borrowings under the Credit Agreement	$	325.0		$	65.0
5.625% senior notes due January 15, 2012		—			158.6
4.95% senior notes due April 1, 2014		258.1			599.5
5.50% senior notes due May 15, 2015		299.8			399.8
8.60% senior notes due August 15, 2016		347.1			346.8
6.125% senior notes due January 15, 2017		523.1			522.9
7.25% senior notes due May 15, 2018		600.0			600.0
11.25% debentures due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		450.0			—
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		199.4			199.3
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		36.8			46.5
Total debt		3,761.4			3,660.5
Less: current portion		(343.0	)		(243.7	)
Long-term debt	$	3,418.4		$	3,416.8

(a) On May 17, 2011 and June 14, 2012, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75% and 12.0%, respectively, as a result of downgrades in the ratings of the notes by the rating agencies.

(b) Includes miscellaneous debt obligations, fair value adjustments to the Company’s 4.95% senior notes due April 1, 2014 and 8.25% senior notes due March 15, 2019 related to the Company’s fair value hedges and capital leases.

The fair values of the senior notes and debentures, which were determined using the market approach 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 less than its book value by approximately $36.9 million and $80.1 million at June 30, 2012 and December 31, 2011, respectively.

On March 13, 2012, the Company issued $450.0 million of 8.25% senior notes due March 15, 2019. Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2012. The net proceeds from the offering and cash on hand were used to repurchase $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015. The repurchases resulted in a pre-tax loss on debt extinguishment of $12.1 million for the six months ended June 30, 2012, consisting of a loss of $23.2 million related to the premiums paid, unamortized debt issuance costs and other expenses, partially offset by the elimination of $11.1 million of the fair value adjustment on the 4.95% senior notes.

On January 15, 2012, proceeds from borrowings under the Company’s unsecured and committed revolving credit agreement (the “Credit Agreement”) were used to pay the $158.6 million 5.625% senior notes that matured on January 15, 2012.

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)

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 an initial $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 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 Company’s Credit Agreement. On September 28, 2011, the Company repurchased an additional $11.6 million of the 11.25% senior notes due February 1, 2019. The repurchases resulted in a pre-tax loss on debt extinguishment of $69.9 million for the year ended December 31, 2011.

Interest income was $4.1 million and $7.7 million for the three and six months ended June 30, 2012, respectively. Interest income was $3.6 million and $6.2 million for the three and six months ended June 30, 2011, respectively.

15. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in 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 cash flow hedges, the effective portion of the unrealized gain or loss related to the derivatives are generally recorded in other comprehensive income (loss) until the transaction affects earnings. 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 also 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

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)

gains or losses on the exposures being managed. The aggregate notional value of the forward contracts at June 30, 2012 and December 31, 2011 was $114.6 million and $78.3 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 March 13, 2012, the Company entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $400.0 million of its fixed-rate senior notes to a floating rate based on LIBOR plus a basis point spread. The interest rate swaps, with a notional value of $400.0 million, are designated as fair value hedges against changes in the value of the Company’s $450.0 million 8.25% senior notes due March 15, 2019, which are attributable to changes in the benchmark interest rate.

On April 9, 2010, the Company entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $600.0 million of its fixed-rate senior notes to a floating rate based on LIBOR plus a basis point spread. The interest rate swaps, with a notional value of $600.0 million at inception, 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. During March 2012, the Company repurchased $341.8 million of the 4.95% senior notes due April 1, 2014, and related interest rate swaps with a notional amount of $342.0 million were terminated, resulting in proceeds of $11.0 million for the fair value of the interest rate swaps.

The fair values of interest rate swaps were determined to be Level 2 under the fair value hierarchy and were developed using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates derived from observed market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. 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 manages credit risk for its derivative positions on a counterparty-by-counterparty basis, considering the net portfolio exposure with each counterparty, consistent with its risk management strategy for such transactions. 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 of 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.

At June 30, 2012 and December 31, 2011, the total fair value of the Company’s foreign exchange forward contracts, which were the only derivatives not designated as hedges, and fair value hedges, along with the accounts in the Condensed Consolidated Balance Sheets in which the fair value amounts were included were as follows:

	June 30, 2012		December 31, 2011
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.6	$	0.3
Accrued liabilities		0.1		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	12.6	$	19.9

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)

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, 2012 and 2011 were as follows:

	Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of  Operations	Three Months Ended   June 30,					Six Months Ended   June 30,
		2012		2011			2012		2011
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	3.1	$	(0.1	)	$	2.4	$	(1.7	)

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, 2012 and 2011 were as follows:

	Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Fair Value Hedges
Interest rate swaps	Investment and other (income) expense-net	$	(8.7	)	$	(7.2	)	$	(3.5	)	$	(3.3	)
Hedged items	Investment and other (income) expense-net		9.5			6.7			3.3			2.6
Total (gain) loss recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other (income) expense-net	$	0.8		$	(0.5	)	$	(0.2	)	$	(0.7	)

The Company also recognized a net reduction to interest expense of $2.0 million and $4.0 million for the three and six months ended June 30, 2012, respectively, and $2.5 million and $5.1 million for the three and six months ended June 30, 2011 related to the Company’s fair value hedges, which includes interest accruals on the derivatives and amortization of the basis in the hedged items.

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 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, 2012 and December 31, 2011.

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

26

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 fair value of assets and liabilities associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the three and six months ended June 30, 2012 and 2011 are summarized below:

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012				As of June 30, 2012
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	1.6	$	4.9	$	7.2	$	9.1	$	8.7
Long-lived assets held for sale or disposal		7.6		9.2		11.4		10.7		8.1
Total	$	9.2	$	14.1	$	18.6	$	19.8	$	16.8

	Three Months Ended June 30, 2011				Six Months Ended June 30, 2011				As of June 30, 2011
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	12.1	$	8.2	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal		12.4		—		18.2		1.3		1.3
Total	$	24.5	$	8.2	$	32.3	$	69.8	$	67.1

During the three and six months ended June 30, 2012, impairment charges of $1.6 million and $7.2 million, respectively, were recognized on long-lived assets held and used. These assets had carrying amounts before the impairment charges of $6.5 million and $16.3 million during the three months and six months ended June 30, 2012, respectively, and were written down to fair values of $4.9 million and $9.1 million during the three and six months ended June 30, 2012, respectively.

During the three and six months ended June 30, 2011, impairment charges of $12.1 million and $14.1 million, respectively, were recognized on long-lived assets held and used. These assets had carrying amounts before the impairment charges of $20.3 million and $82.6 million during the three months and six months ended June 30, 2011, respectively, and were written down to fair values of $8.2 million and $68.5 million during the three and six months ended June 30, 2011, respectively.

During the three and six months ended June 30, 2012, impairment charges of $7.6 million and $11.4 million, respectively, were recognized on long-lived assets held for sale or disposal. These assets had carrying amounts before the impairment charges of $16.4 million and $21.7 million during the three and six months ended June 30, 2012, respectively, and were written down to fair values of $9.2 million and $10.7 million during the three and six months ended June 30, 2012, respectively. These fair values were reduced by estimated costs to sell of $0.4 million for the three and six months ended June 30, 2012.

During the three and six months ended June 30, 2011, impairment charges of $12.4 million and $18.2 million, respectively, were recognized on long-lived assets held for sale or disposal. These assets had carrying amounts before the impairment charges of $12.4 million and $19.5 million during the three and six months ended June 30, 2011, respectively, and were written down to fair values of zero and $1.3 million during the three and six months ended June 30, 2011, respectively.

The fair values of the long-lived assets held and used and long-lived assets held for sale or disposal were determined using Level 3 inputs and 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 the current marketplace conditions. Unobservable inputs obtained from third parties are adjusted as necessary for the condition and attributes of the specific asset. The Company’s accounting and

27

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)

finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs.

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

17. Income Taxes

The Company’s unrecognized tax benefits at June 30, 2012 and December 31, 2011 were as follows:

Balance at December 31, 2011	$	76.4
Additions for tax positions of the current year		2.8
Additions for tax positions of the prior year		0.5
Reductions for tax positions of prior years		(24.6	)
Settlements during the year		(1.7	)
Balance at June 30, 2012	$	53.4

During the three and six months ended June 30, 2012, the Company recognized $24.6 million of previously unrecognized tax benefits, substantially all of which was due to the resolution of certain U.S. federal uncertain tax positions. As of June 30, 2012, it is reasonably possible that the total amount of unrecognized tax benefits will decrease within twelve months by as much as $18.8 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state and international tax positions.

18. New Accounting Pronouncements

In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2012-02 “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. ASU 2012-02 will be effective for the Company in the first quarter of 2013; however, as permitted, the Company will early adopt ASU 2012-02 in the third quarter of 2012. ASU 2012-02 is expected to reduce the complexity of testing indefinite-lived intangible assets for impairment, but otherwise will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2011, the FASB issued Accounting Standards Update No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), which requires disclosures of gross and net information about financial and derivative instruments eligible for offset in the statement of financial position or subject to a master netting agreement. ASU 2011-11 will be effective for the Company in the first quarter of 2013 and may require additional disclosures, but otherwise is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In June 2011, the 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 the statement of changes 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. In December 2011, the FASB issued Accounting Standards Updated No. 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting

28

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)

Standards Update No. 2011-05” (“ASU 2011-12”), which defers the requirement to present reclassification adjustments for each component of other comprehensive income on the face of the financial statements. ASU 2011-05 and 2011-12 were effective and adopted by the Company in the first quarter of 2012 and impacted the Company’s financial statement presentation, but otherwise did not impact the Company’s condensed consolidated financial position, 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 was effective and adopted by the Company in the first quarter of 2012 and impacted the Company’s disclosures, but otherwise did not have a material impact on the Company’s condensed consolidated financial position, results of operations or cash flows.

29

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. The Company works collaboratively with more than 60,000 customers worldwide to develop custom communications solutions that reduce costs, drive top line growth, 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 services to clients in virtually every private and public sector.

Business acquisitions

On May 22, 2012, the Company announced that it had signed a definitive agreement to acquire EDGAR Online for approximately $70.5 million. EDGAR Online, a leading provider of disclosure management services, financial data and enterprise risk analytics software and solutions, is headquartered in Rockville, Maryland. The acquisition is expected to close in the third quarter of 2012 and is subject to customary closing conditions, including approval by EDGAR Online shareholders.

On November 21, 2011, the Company acquired StratusGroup, Inc. (“Stratus”), a full service manufacturer of custom pressure sensitive label and paperboard packaging products for health and beauty, food, beverage and other segments. Stratus’ operations are included in the U.S. Print and Related Services segment.

On September 6, 2011, the Company acquired Genesis Packaging & Design Inc. (“Genesis”), a full service provider of custom packaging, including designing, printing, die cutting, finishing and assembling. Genesis’ operations are included in the U.S. Print and Related Services segment.

On August 16, 2011, the Company acquired LibreDigital, Inc. (“LibreDigital”), a leading provider of digital content distribution, e-reading software, content conversion, data analytics and business intelligence services. LibreDigital’s operations are included in the U.S. Print and Related Services segment.

On August 15, 2011, the Company acquired Sequence Personal LLC (“Sequence”), a provider of proprietary software that enables readers to select relevant content to be digitally produced as specialized publications. Sequence’s operations are included in the U.S. Print and Related Services segment.

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.

Segment descriptions

The Company operates primarily in the printing industry, with products and related service offerings designed to offer customers complete solutions for communicating their messages to target audiences. 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 logistics, premedia, print management and other print related 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.

30

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, manuals, statement printing, premedia and logistics services. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management services through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia.

Corporate

Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans are included in Corporate and not allocated to operating segments. Corporate also 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.

Products and Services

The Company separately reports its net sales and related costs of sales for its products and service offerings. The Company’s product offerings primarily consist of magazines, catalogs, retail inserts, books, directories, direct mail, financial print, forms, labels, statement printing, commercial print, office products and print management. The Company’s service offerings primarily consist of logistics, premedia, EGDAR-related and XBRL financial services and certain business outsourcing services.

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Executive Summary

Financial Performance: Three Months Ended June 30, 2012

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, 2012, from the three months ended June 30, 2011, 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, 2011	$	116.1			4.4	%	$	12.2		$	0.06
2012 restructuring and impairment charges		(34.0	)		(1.3	%)		(22.7	)		(0.13	)
2011 restructuring and impairment charges		75.7			2.9	%		57.8			0.29
Acquisition-related expenses		0.4			—			0.3			—
Net gain (loss) on investments		—			—			(12.1	)		(0.06	)
Loss on debt extinguishment		—			—			44.3			0.22
Recognition of income tax benefits		—			—			26.1			0.14
Operations		5.7			0.5	%		(17.1	)		(0.03	)
For the three months ended June 30, 2012	$	163.9			6.5	%		88.8			0.49

2012 restructuring and impairment charges: included pre-tax charges of $13.8 million for employee termination costs; $11.9 million of other restructuring costs, including lease termination costs; and $8.3 million for impairment of other long-lived assets, primarily for machinery and equipment associated with facility closures and other asset disposals.

2011 restructuring and impairment charges: included pre-tax charges of $29.2 million for employee termination costs; $22.2 million of other restructuring costs, primarily related to $15.8 million of multi-employer pension plan partial withdrawal charges; and $24.3 million for impairment of other 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.

Acquisition-related expenses: included pre-tax charges of $0.5 million ($0.5 million after-tax) related to legal, accounting and other expenses for the three months ended June 30, 2012 associated with acquisitions contemplated. For the three months ended June 30, 2011, these pre-tax charges were $0.9 million ($0.8 million after-tax) for acquisitions completed or contemplated.

Net gain (loss) on investments: included a pre-tax impairment loss on an equity investment of $4.1 million ($2.6 million after-tax) for the three months ended June 30, 2012. The three months ended June 30, 2011 included a pre-tax gain of $9.8 million ($9.5 million after-tax) 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.

Loss on debt extinguishment: included a pre-tax loss of $68.6 million ($44.3 million after-tax) for the three months ended June 30, 2011 due to the repurchase of $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 million of the 5.50% senior notes due May 15, 2015.

Recognition of income tax benefits: included the recognition of previously unrecognized tax benefits due to the resolution of certain U.S. federal uncertain tax positions for the three months ended June 30, 2012.

Operations: reflected cost savings from restructuring activities, lower pension and postretirement benefits expenses and lower depreciation and amortization expense. These cost reductions were partially offset by a

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net decrease in volume and unfavorable product mix, price declines and lower recovery on print-related by-products. Income tax expense increased as compared to the same period in the prior year reflecting the 2011 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, 2012

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, 2012, from the six months ended June 30, 2011, 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, 2011	$	225.5			4.3	%	$	46.1		$	0.23
2012 restructuring and impairment charges		(84.0	)		(1.7	%)		(55.9	)		(0.31	)
2011 restructuring and impairment charges		126.5			2.4	%		92.1			0.45
Acquisition-related expenses		0.5			—			0.4			0.01
Net gain (loss) on investments		—			—			(12.1	)		(0.06	)
Loss on debt extinguishment		—			—			36.4			0.18
Recognition of income tax benefits		—			—			26.1			0.14
Operations		16.8			0.6	%		(6.9	)		0.05
For the six months ended June 30, 2012	$	285.3			5.6	%		126.2			0.69

2012 restructuring and impairment charges: included pre-tax charges of $50.6 million for employee termination costs; $15.8 million of other restructuring costs, including lease termination costs; and $17.6 million for impairment of other long-lived assets, primarily for machinery and equipment associated with facility closures and other asset disposals.

2011 restructuring and impairment charges: included pre-tax charges of $54.0 million for employee termination costs; $40.1 million of other restructuring costs, partially related to $15.8 million of multi-employer pension plan partial withdrawal charges, as well as lease termination costs; and $32.4 million for impairment of other 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.

Acquisition-related expenses: included pre-tax charges of $0.8 million ($0.8 million after-tax) related to legal, accounting and other expenses for the six months ended June 30, 2012 associated with acquisitions contemplated. For the six months ended June 30, 2011, these pre-tax charges were $1.3 million ($1.2 million after-tax) for acquisitions completed or contemplated.

Net gain (loss) on investments: included a pre-tax impairment loss on an equity investment of $4.1 million ($2.6 million after-tax) for the six months ended June 30, 2012. The six months ended June 30, 2011 included a pre-tax gain of $9.8 million ($9.5 million after-tax) 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.

Loss on debt extinguishment: included a pre-tax loss of $12.1 million ($7.9 million after-tax) for the six months ended June 30, 2012 due to the repurchase of $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015. The loss consisted of $23.2 million

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related to the premiums paid, unamortized debt issuance costs and other expenses, partially offset by the elimination of $11.1 million of the fair value adjustment on the 4.95% senior notes. For the six months ended June 30, 2011, a pre-tax loss on debt extinguishment of $68.6 million ($44.3 million after-tax) was recognized due to the repurchase of $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 million of the 5.50% senior notes due May 15, 2015.

Recognition of income tax benefits: included the recognition of previously unrecognized tax benefits related to the resolution of certain U.S. federal uncertain tax positions for the six months ended June 30, 2012.

Operations: reflected lower pension and postretirement benefits expenses, cost savings from restructuring activities and lower depreciation and amortization expense. These cost reductions were partially offset by a net decrease in volume and unfavorable product mix, price declines, lower recovery on print-related by-products and the Company’s reinstated 401(k) match. Income tax expense increased as compared to the same period in the prior year reflecting the 2011 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 2012, the Company experienced the impact of continued economic uncertainty and the increasing impact of electronic substitution on certain product offerings. Net sales decreased during the second quarter of 2012 compared to the second quarter of 2011 in the U.S. Print and Related Services segment, resulting from lower overall volume, a decline in pass-through paper sales and ongoing price pressures, and in the International segment, primarily due to changes in foreign exchanges rates. These decreases were partially offset by organic growth in certain products and services during the second quarter of 2012, despite the difficult environment. In particular, the Company had organic growth in logistics, business process outsourcing, Asia and office products. The largest net sales declines were experienced in books and directories, due to reduced state and local funding for educational materials and electronic substitution; Europe, due to changes in foreign exchange rates, a decline in capital markets transactions activity and lower print bundling volume; magazines, catalogs and retail inserts, due mostly to customers furnishing their own paper; Latin America, due primarily to changes in foreign exchange rates and lower book, commercial print and forms volumes in Chile and Brazil; and financial print, due to a decline in capital markets transactions activity.

During the six months ended June 30, 2012 the Company’s operating margin increased from 4.3% to 5.6% as compared to the same period in the prior year. This increase was partially driven by several restructuring actions initiated by the Company in the current and prior year to further reduce the Company’s overall cost structure. These actions included the reorganization of sales and administrative functions across all segments. In addition, the Company completed or announced closures of five manufacturing facilities during the six months ended June 30, 2012.

Net cash provided by operating activities for the six months ended June 30, 2012 was $9.9 million as compared to $168.1 million for the six months ended June 30, 2011. The decrease in cash provided by operating activities primarily resulted from shifts in the timing of supplier payments and cash collections, higher pension and postretirement contributions and the Company’s reinstated 401(k) match, partially offset by lower payments for employee incentive compensation. Similar to 2011, the Company also expects higher net cash inflows from operations in the second half of 2012 due to normal operating cycles of the Company’s business. On July 6, 2012, the Surface Transportation Extension Act of 2012 (the “Act”) was signed into law. Changes in pension funding requirements primarily as a result of the Act reduced the Company’s expected 2012 pension and postretirement contributions by approximately $42 million as compared to previous estimates. These changes are expected to result in additional reductions of the Company’s required contributions in 2013 and 2014. The Company expects to make pension and postretirement contributions of approximately $174 million during the

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twelve months ending December 31, 2012, which is expected to result in lower operating cash flows as compared to the prior year. Of this amount, $56.6 million was paid during the six months ended June 30, 2012. The majority of the remaining contributions are expected to be made during the third quarter.

On May 22, 2012, the Company announced that it had signed a definitive agreement to acquire EDGAR Online for approximately $70.5 million. EDGAR Online, a leading provider of disclosure management services, financial data and enterprise risk analytics software and solutions, is headquartered in Rockville, Maryland. The Company expects the acquisition of EDGAR Online to expand and enhance the range of services that the Company offers to its customers. In addition, this acquisition is expected to be accretive to earnings in the first full year after closing. The acquisition is expected to close in the third quarter of 2012 and is subject to customary closing conditions, including approval by EDGAR Online shareholders.

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 products and service offerings.

Technological changes, including the electronic distribution of documents and data, online distribution and hosting of media content, and 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 books, directories, forms and statement printing. Electronic communication and transaction technology has eliminated or reduced the role of many traditional printed products and has continued to accelerate electronic substitution in directory and statement 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 technologies. In addition, the Company has made targeted acquisitions and investments in the Company’s existing business 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.

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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 2012 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 fluctuated during the first half of 2012, and volatility in the future 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, but there is no assurance that market conditions will continue to enable the Company to successfully do so. 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. Additionally, the Company has undertaken various strategic initiatives to mitigate any foreseeable supply disruptions with respect to the Company’s ink requirements.

The Company continues to monitor the impact of changes in the price of crude oil and other energy costs, which impact 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. However, the Company enters into fixed price contracts for a portion of its natural gas purchases to mitigate the impact of changes in energy prices. The Company cannot predict sudden changes in energy prices and the impact that possible future energy price increases or decreases might have upon either future 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 Company manages the distribution of most customer products printed by the Company in the U.S. and Canada to maximize efficiency 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 January 22, 2012, the United States Postal Service (“USPS”) increased postage rates for all major mail classes within the market-dominant product category, including first-class mail, standard mail, periodicals and single piece parcel post. The new rates increased the cost of mailing these classes of mail by approximately 2.1%, on average, which is the formula calculated cap under the 2006 Postal Accountability and Enhancement Act. Under this 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 USPS and its customers to offer innovative products and services to minimize postage

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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, 2012 compared to expected results as of October 31, 2011. In addition, management considered how other key assumptions, including discount rates and expected long-term growth rates, used in the last fiscal year’s impairment analysis, could be impacted by changes in market conditions and economic events. Since October 31, 2011, the market value of the Company’s stock has decreased while market yields on the Company’s debt have increased in recent months.

Management considered these trends in performing its assessment of whether an interim impairment review was required for any reporting unit. Based on this interim assessment, management concluded that as of June 30, 2012, 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. Nevertheless, significant changes in global economic and market 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 material impairment of goodwill as of October 31, 2012, the Company’s next annual measurement date.

In particular, the books and directories reporting unit has continued to experience declines in sales due to lower demand for educational books as a result of state and local government budget constraints, the impact of electronic substitution on directory and consumer book volumes and pricing pressures driven by excess capacity in the industry. Continued negative trends could have a significant impact on the estimated fair value of this reporting unit and could result in future impairment charges. Significant uncertainty exists with respect to the timing and extent of recovery in education book volumes and the pace of electronic substitution for printed consumer books. As of the October 31, 2011 annual goodwill impairment test, the books and directories reporting unit’s estimated fair value exceeded book value by approximately 18%. As of June 30, 2012 $318.6 million of goodwill was allocated to the books and directories reporting unit, which is included within the U.S. Print and Related Services segment.

The funded status of the Company’s pension and postretirement plans is dependent upon many factors, including returns on invested assets and the level of certain market interest rates. As experienced in prior years, declines in the market value of the securities held by the plans have reduced, and in the future could materially reduce, the funded status of the plans. These reductions have increased the level of expected required pension and postretirement contributions in future years. Market conditions may lead to changes in the discount rates used to value the year-end benefit obligations of the plans, which could partially mitigate or worsen the effects of the lower asset returns. The Act, signed into law in July of 2012, includes certain pension-related provisions designed to stabilize interest rates used to calculate the minimum required annual contributions for defined benefit pension plans. The Company anticipates that provisions in the Act will significantly reduce the minimum required annual contributions related to its defined benefit pension plans over the next few years though these contributions are dependent on many factors, including returns on invested assets and discount rates used to determine the pension obligations. Based on current estimates, the Company expects to make cash contributions of approximately $174 million to its pension and postretirement plans in 2012 and approximately $76 million in 2013.

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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.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2012 AS COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2011

The following table shows the results of operations for the three months ended June 30, 2012 and 2011:

	Three Months Ended June 30,
	2012		2011		$ Change			% Change
	(in millions, except percentages)
Net sales
Products	$	2,189.7	$	2,356.9	$	(167.2	)		(7.1%	)
Services		338.9		266.5		72.4			27.2%
Total net sales		2,528.6		2,623.4		(94.8	)		(3.6%	)
Products cost of sales (exclusive of depreciation and amortization)		1,689.6		1,777.2		(87.6	)		(4.9%	)
Services cost of sales (exclusive of depreciation and amortization)		244.3		204.4		39.9			19.5%
Selling, general and administrative expenses (exclusive of depreciation and amortization)		275.9		309.3		(33.4	)		(10.8%	)
Restructuring and impairment charges—net		34.0		75.7		(41.7	)		(55.1%	)
Depreciation and amortization		120.9		140.7		(19.8	)		(14.1%	)
Total operating expenses		2,364.7		2,507.3		(142.6	)		(5.7%	)
Income from operations	$	163.9	$	116.1	$	47.8			41.2%

Consolidated

Net sales of products for the three months ended June 30, 2012 decreased $167.2 million, or 7.1%, to $2,189.7 million versus the same period in the prior year, including a $40.6 million, or 1.7%, decrease due to changes in foreign exchange rates. Net sales of products decreased in the U.S. Print and Related Services segment, resulting from lower overall volume, decreased pass-through paper sales, a decline in capital markets transactions activity and ongoing price pressure, and in the International segment, primarily due to changes in foreign exchange rates. These decreases were partially offset by increased volume in business process outsourcing, higher volume in office products and organic growth in Asia.

Net sales from services for the three months ended June 30, 2012 increased $72.4 million, or 27.2%, to $338.9 million versus the same period in the prior year. Net sales from financial services increased, driven in part by changes in the classification of certain financial services revenues, as well as increased XBRL financial services volume. Logistics volume also increased, driven primarily by growth in freight brokerage services. These increases were partially offset by changes in foreign exchange rates of $2.7 million, or 1.0%.

Products cost of sales decreased $87.6 million to $1,689.6 million for the three months ended June 30, 2012 versus the same period in the prior year primarily due to lower overall volume. Products cost of sales as a percentage of products net sales increased from 75.4% to 77.2%, reflecting unfavorable product mix, price declines and lower recovery on print-related by-products.

Services cost of sales increased $39.9 million to $244.3 million for the three months ended June 30, 2012 versus the same period in the prior year primarily due to increased financial services revenue and higher logistics volume. Services cost of sales as a percentage of services net sales decreased from 76.7% to 72.1%, reflecting favorable mix and pricing in logistics.

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Selling, general and administrative expenses decreased $33.4 million to $275.9 million, and from 11.8% to 10.9% as a percentage of net sales, for the three months ended June 30, 2012 versus the same period in the prior year due to lower pension and postretirement benefits expenses, primarily resulting from the freeze on further benefit accruals under all U.S. and Canadian pension plans beginning January 1, 2012 and April 1, 2012, respectively, and cost savings from restructuring activities.

For the three months ended June 30, 2012, the Company recorded net restructuring and impairment charges of $34.0 million compared to $75.7 million in the same period of 2011. In 2012, these charges included $13.8 million for employee termination costs for 455 employees, of whom 267 were terminated as of June 30, 2012. These terminations resulted from the reorganization of sales and administrative functions across all segments, the closing of two manufacturing facilities within the U.S. Print and Related Services segment and the reorganization of certain operations. Additionally, for the three months ended June 30, 2012, the Company incurred lease termination and other restructuring charges of $11.9 million and impairment charges of $8.3 million, primarily related to machinery and equipment associated with the facility closings and other asset disposals.

Restructuring charges for the three months ended June 30, 2011 included $29.2 million for employee termination costs for 1,150 employees, all of whom were terminated as of June 30, 2012. These charges primarily related to the closings of certain facilities and headcount reductions due to the Bowne acquisition. The charges also related to the closing of two books and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, for the three months ended June 30, 2011 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. For the three months ended June 30, 2011, the Company also recorded $24.3 million of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings.

Depreciation and amortization decreased $19.8 million to $120.9 million for the three months ended June 30, 2012 compared to the same period in 2011, primarily due to the impact of lower capital spending in recent years compared to historical levels, certain other intangible assets becoming fully amortized during the period and the impairment of $90.7 million of other intangible assets in the fourth quarter of 2011. Depreciation and amortization included $22.1 million and $28.8 million of amortization of other intangible assets related to customer relationships, patents, trademarks, licenses and agreements and trade names for the three months ended June 30, 2012 and 2011, respectively.

Income from operations for the three months ended June 30, 2012 was $163.9 million, an increase of 41.2% compared to the three months ended June 30, 2011. The increase was due to lower restructuring and impairment charges, cost savings from restructuring activities, lower pension and postretirement benefits expenses and lower depreciation and amortization expense, partially offset by lower overall volume and unfavorable product mix, declining prices and lower recovery on print-related by-products.

Net interest expense increased by $2.3 million for the three months ended June 30, 2012 versus the same period in 2011, primarily due to the June 1, 2011 issuance of $600.0 million of 7.25% senior notes due May 15, 2018 and the March 13, 2012 issuance of $450.0 million of 8.25% senior notes due March 15, 2019 as well as increased borrowings under the Credit Agreement, partially offset by the repayment of $341.8 million of the 4.95% senior notes due April 1, 2014, $158.6 million of the 5.625% senior notes due January 15, 2012 and $100.0 million of the 5.50% senior notes due May 15, 2015 in the first quarter of 2012.

Net investment and other (income) expense for the three months ended June 30, 2012 and 2011 was expense of $4.8 million and income of $10.0 million, respectively. The three months ended June 30, 2012 included an impairment loss on an equity investment of $4.1 million. 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 due to the repurchase of $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 million of the 5.50% senior notes due May 15, 2015.

The effective income tax rate for the three months ended June 30, 2012 was a provision of 6.8% compared to a benefit of 428.9% in the same period of 2011. The tax rate in 2012 reflects the recognition of previously unrecognized tax benefits due to the resolution of certain U.S. federal uncertain tax positions. The rate in 2011 reflects the recognition of previously unrecognized tax benefits due to the resolution of certain U.S. state tax audits as well as the release of valuation allowances on certain deferred tax assets within the U.S. and Europe.

Income attributable to noncontrolling interests was $0.2 million and $0.3 million for the three months ended June 30, 2012 and 2011, respectively.

Net earnings attributable to RR Donnelley common shareholders for the three months ended June 30, 2012 was $88.8 million, or $0.49 per diluted share, compared to $12.2 million, or $0.06 per diluted share, for the three months ended June 30, 2011. In addition to the factors described above, the per share results reflect a decrease in weighted average diluted shares outstanding of 17.7 million primarily due to the purchase of shares as a result of the accelerated share repurchase in 2011.

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,
	2012			2011
	(in millions, except percentages)
Net sales	$	1,846.0		$	1,920.9
Income from operations		165.7			132.8
Operating margin		9.0	%		6.9	%
Restructuring and impairment charges		26.1			65.1

The amounts included in the table below represent net sales by reporting unit and the descriptions reflect the primary products or services provided by each reporting unit. Included in these net sales amounts are sales of other products or services that may be produced within a reporting unit to meet customer needs and improve operating efficiency.

	Net Sales for the Three Months Ended June 30,
Reporting unit	2012		2011		$ Change			% Change
	(in millions, except percentages)
Magazines, catalogs and retail inserts (a)	$	424.3	$	444.3	$	(20.0	)		(4.5%	)
Variable print (a)		276.3		288.9		(12.6	)		(4.4%	)
Books and directories (a)		277.1		310.5		(33.4	)		(10.8%	)
Financial print		265.9		283.7		(17.8	)		(6.3%	)
Forms and labels		185.5		193.6		(8.1	)		(4.2%	)
Logistics		180.9		162.5		18.4			11.3%
Commercial (a)		133.1		149.5		(16.4	)		(11.0%	)
Office products		66.4		52.9		13.5			25.5%
Premedia		36.5		35.0		1.5			4.3%
Total U.S. Print and Related Services	$	1,846.0	$	1,920.9	$	(74.9	)		(3.9%	)

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(a) Certain prior year amounts were restated to conform to the Company’s current reporting unit structure.

Net sales for the U.S. Print and Related Services segment for the three months ended June 30, 2012 were $1,846.0 million, a decrease of $74.9 million, or 3.9%, compared to the same period in 2011. Net sales decreased due to lower volume in both books and directories, decreases in pass-through paper sales, declines in capital markets transactions activity, lower commercial, statement and direct mail printing volume and lower prices, partially offset by higher volume in freight brokerage services, office products and XBRL financial services. An analysis of net sales by reporting unit follows:

• Magazines, catalogs and retail inserts: Sales declined due to decreases in pass-through paper sales and price declines, partially offset by higher catalog volume.

• Variable print: Sales decreased as a result of lower statement and direct mail printing volume and continued price pressures.

• Books and directories: Sales decreased due to lower volume in educational books, consumer books and directories primarily as a result of lower state funding for educational materials and electronic substitution, as well as lower pass-through paper sales and price declines for books.

• Financial print: Sales decreased due to a decline in capital markets transactions activity, partially offset by an increase in XBRL financial services volume.

• Forms and labels: Sales decreased due to lower forms and labels volume and price declines, partially offset by sales resulting from the Stratus acquisition.

• Logistics: Sales increased primarily due to higher freight brokerage services volume as well as increased courier and expedited logistics services.

• Commercial: Sales decreased due to lower volume, unfavorable product mix and lower pricing.

• Office products: Sales increased as the result of new business from existing customers, an increase in back-to-school supplies volume and favorable pricing.

• Premedia: Sales increased slightly due to higher volume, largely offset by price pressures on contract renewals.

U.S. Print and Related Services segment income from operations increased $32.9 million for the three months ended June 30, 2012 mainly driven by lower restructuring and impairment charges, cost savings from restructuring activities and lower depreciation and amortization expense, partially offset by lower overall volume, lower recovery on print-related by-products and price declines. Operating margins increased from 6.9% for the three months ended June 30, 2011 to 9.0% for the three months ended June 30, 2012, due to lower restructuring and impairment charges, cost savings from restructuring activities and lower depreciation and amortization expense.

International

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

	Three Months Ended June 30,
	2012			2011
	(in millions, except percentages)
Net sales	$	682.6		$	702.5
Income from operations		42.0			43.6
Operating margin		6.2	%		6.2	%
Restructuring and impairment charges		3.5			9.8

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	Net Sales for the Three Months Ended June 30,
Reporting unit	2012		2011		$ Change			% Change
	(in millions, except percentages)
Asia	$	170.8	$	158.1	$	12.7			8.0%
Business process outsourcing		159.0		140.8		18.2			12.9%
Latin America		109.1		127.1		(18.0	)		(14.2%	)
Europe		94.0		123.1		(29.1	)		(23.6%	)
Global Turnkey Solutions		79.4		74.8		4.6			6.1%
Canada		70.3		78.6		(8.3	)		(10.6%	)
Total International	$	682.6	$	702.5	$	(19.9	)		(2.8%	)

Net sales for the International segment for the three months ended June 30, 2012 were $682.6 million, a decrease of $19.9 million, or 2.8%, compared to the same period in 2011. The net sales decrease was due to changes in foreign exchange rates of $43.3 million, or 6.2%, a decline in capital markets transactions activity, decreased print bundling volume in Europe, lower volume in Latin America and price pressures, partially offset by increased volume in business process outsourcing, Asia and Global Turnkey Solutions and higher pass-through paper sales in Asia. An analysis of net sales by reporting unit follows:

• Asia: Sales increased due to increased volume in print bundling and packaging services, increased pass-through paper sales and higher book export volume, partially offset by a decline in capital markets transactions activity and price declines.

• Business process outsourcing: Sales increased due to higher pass-through sales in print management, increased global outsourcing volume and volume increases from new and existing customers, partially offset by changes in foreign exchange rates.

• Latin America: Sales decreased due to changes in foreign exchange rates, declines in book and commercial print volume in Chile and lower forms and book volume in Brazil, partially offset by higher commercial print volume in Argentina and Mexico and favorable pricing.

• Europe: Sales decreased due to changes in foreign exchange rates, a decline in capital markets transactions activity, lower print bundling volume and declines in directories volume, partially offset by increased commercial print volume.

• Global Turnkey Solutions: Sales increased primarily due to volume increases from existing and new customer contracts, partially offset by lower volume from the loss of a customer and price pressures.

• Canada: Sales decreased due to declines in forms and commercial volumes, changes in foreign exchange rates and a decline in capital markets transactions activity, partially offset by higher statement printing volume for a new customer.

Income from operations decreased $1.6 million primarily due to lower capital markets transactions activity, volume decreases in Europe, wage inflation in Latin America and Asia and price declines, largely offset by cost savings from restructuring activities, lower restructuring and impairment charges and increased volume in Global Turnkey Solutions, Asia and business process outsourcing. Operating margins remained constant at 6.2% for the three months ended June 30, 2012 and 2011, reflecting cost savings from restructuring activities, lower restructuring and impairment charges and higher volume in certain products and services, partially offset by wage inflation, price declines and higher pass-through sales in print management.

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Corporate

The following table summarizes unallocated operating expenses and certain items impacting comparability within the Corporate segment:

	Three Months Ended June 30,
	2012		2011
	(in millions)
Operating expenses	$	43.8	$	60.3
Restructuring and impairment charges		4.4		0.8
Acquisition-related expenses		0.5		0.9

Corporate operating expenses in the three months ended June 30, 2012 were $43.8 million, a decrease of $16.5 million compared to the same period in 2011. The decrease was driven by lower pension and postretirement benefits expenses, primarily related to the freeze on further benefit accruals for all U.S. and Canadian pension plans beginning January 1, 2012 and April 1, 2012, respectively and lower LIFO inventory provisions, partially offset by higher healthcare costs, the Company’s reinstated 401(k) match and increased restructuring and impairment charges.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2012 AS COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2011

The following table shows the results of operations for the six months ended June 30, 2012 and 2011:

	Six Months Ended June 30,
	2012		2011		$ Change			% Change
	(in millions, except percentages)
Net sales
Products	$	4,386.2	$	4,623.3	$	(237.1	)		(5.1%	)
Services		667.3		583.6		83.7			14.3%
Total net sales		5,053.5		5,206.9		(153.4	)		(2.9%	)
Products cost of sales (exclusive of depreciation and amortization)		3,392.5		3,504.0		(111.5	)		(3.2%	)
Services cost of sales (exclusive of depreciation and amortization)		486.4		433.8		52.6			12.1%
Selling, general and administrative expenses (exclusive of depreciation and amortization)		559.4		636.2		(76.8	)		(12.1%	)
Restructuring and impairment charges-net		84.0		126.5		(42.5	)		(33.6%	)
Depreciation and amortization		245.9		280.9		(35.0	)		(12.5%	)
Total operating expenses		4,768.2		4,981.4		(213.2	)		(4.3%	)
Income from operations	$	285.3	$	225.5	$	59.8			26.5%

Consolidated

Net sales of products for the six months ended June 30, 2012 decreased $237.1 million, or 5.1%, to $4,386.2 million versus the same period in the prior year, including a $58.9 million, or 1.3%, decrease due to changes in foreign exchange rates. Net sales of products decreased in the U.S. Print and Related Services segment, resulting from lower overall volume, a decline in capital markets transactions activity, decreased pass-through paper sales and ongoing price pressures, and in the International segment, primarily due to changes in foreign exchange rates. These decreases were partially offset by increased volume in business process outsourcing, the rebate adjustment to net sales to correct for an over-accrual of rebates due to certain office products customers and organic growth in Asia.

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Net sales from services for the six months ended June 30, 2012 increased $83.7 million, or 14.3%, to $667.3 million versus the same period in the prior year. Net sales from services increased due to higher logistics volume, driven primarily by growth in freight brokerage services, as well as increased volume in XRBL financial services, partially offset by changes in foreign exchange rates of $4.1 million, or 0.7%.

Products cost of sales decreased $111.5 million to $3,392.5 million for the six months ended June 30, 2012 versus the same period in the prior year primarily due to lower overall volume. Products cost of sales as a percentage of products net sales increased from 75.8% to 77.3%, reflecting unfavorable product mix, price pressures and lower recovery on print-related by-products.

Services cost of sales increased $52.6 million to $486.4 million for the six months ended June 30, 2012 versus the same period in the prior year primarily due to higher logistics volume as well as increased XBRL financial services volume. Services cost of sales as a percentage of services net sales decreased from 74.3% to 72.9%, reflecting favorable mix and pricing in logistics.

Selling, general and administrative expenses decreased $76.8 million to $559.4 million, and from 12.2% to 11.1% as a percentage of net sales, for the six months ended June 30, 2012 versus the same period in the prior year due to lower pension and postretirement benefits expenses, primarily resulting from the freeze on further benefit accruals under all U.S. and Canadian pension plans beginning January 1, 2012 and April 1, 2012, respectively, and cost savings from restructuring activities.

For the six months ended June 30, 2012, the Company recorded net restructuring and impairment charges of $84.0 million compared to $126.5 million in the same period of 2011. In 2012, these charges included $50.6 million for employee termination costs for 1,820 employees, of whom 1,578 were terminated as of June 30, 2012. These terminations resulted from the reorganization of sales and administrative functions across all segments, the closing of four manufacturing facilities within the U.S. Print and Related Services segment and one manufacturing facility within the International segment and the reorganization of certain operations. Additionally, for the six months ended June 30, 2012, the Company incurred lease termination and other restructuring charges of $15.8 million and impairment charges of $17.6 million, primarily related to machinery and equipment associated with the facility closings and other asset disposals.

Restructuring charges for the six months ended June 30, 2011 included $54.0 million for employee termination costs for 1,859 employees, all of whom were terminated as of June 30, 2012. These charges primarily related to the closings of certain facilities and headcount reductions due to the Bowne acquisition. The charges also related to the closing of three books 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. For the six months ended June 30, 2011, the Company also recorded $32.4 million of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings.

Depreciation and amortization decreased $35.0 million to $245.9 million for the six months ended June 30, 2012 compared to the same period in 2011, primarily due to the impact of lower capital spending in recent years compared to historical levels, certain other intangible assets becoming fully amortized during the period and the impairment of $90.7 million of other intangible assets in the fourth quarter of 2011. Depreciation and amortization included $46.4 million and $57.3 million of amortization of other intangible assets related to customer relationships, patents, trademarks, licenses and agreements and trade names for the six months ended June 30, 2012 and 2011, respectively.

Income from operations for the six months ended June 30, 2012 was $285.3 million, an increase of 26.5% compared to the six months ended June 30, 2011. The increase was due to lower pension and postretirement

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benefits expenses, cost savings from restructuring activities, lower restructuring and impairment charges and lower depreciation and amortization expense, partially offset by lower overall volume, price declines and lower recovery on print-related by-products.

Net interest expense increased by $5.1 million for the six months ended June 30, 2012 versus the same period in 2011, primarily due to the June 1, 2011 issuance of $600.0 million of 7.25% senior notes due May 15, 2018 and the March 13, 2012 issuance of $450.0 million of 8.25% senior notes due March 15, 2019 as well as increased borrowings under the Credit Agreement, partially offset by the repayment of $341.8 million of the 4.95% senior notes due April 1, 2014, $158.6 million of the 5.625% senior notes due January 15, 2012 and $100.0 million of the 5.50% senior notes due May 15, 2015 during the six months ended June 30, 2012.

Net investment and other (income) expense for the six months ended June 30, 2012 and 2011 was expense of $3.6 million and income of $9.8 million, respectively. The six months ended June 30, 2012 included an impairment loss on an equity investment of $4.1 million. 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.

Loss on debt extinguishment for the six months ended June 30, 2012 was $12.1 million due to the 2012 repurchase of $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015. The loss consisted of $23.2 million related to the premiums paid, unamortized debt issuance costs and other expenses, partially offset by the elimination of $11.1 million of the fair value adjustment on the 4.95% senior notes. Loss on debt extinguishment for the six months ended June 30, 2011 was $68.6 million due to the repurchase of $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 million of the 5.50% senior notes due May 15, 2015.

The effective income tax rate for the six months ended June 30, 2012 was 12.7% compared to 1.5% in the same period of 2011. The tax rate in 2012 reflects the recognition of previously unrecognized tax benefits due to the resolution of certain U.S. federal uncertain tax positions and the release of valuation allowances on certain deferred tax assets in Europe. The rate in 2011 reflects the recognition of previously unrecognized tax benefits due to the resolution of certain U.S. state audits as well as the release of valuation allowances on certain deferred tax assets within the U.S. and Europe.

Income attributable to noncontrolling interests was $0.7 million for the six months ended June 30, 2012 and 2011, respectively.

Net earnings attributable to RR Donnelley common shareholders for the six months ended June 30, 2012 was $126.2 million, or $0.69 per diluted share, compared to $46.1 million, or $0.23 per diluted share, for the six months ended June 30, 2011. In addition to the factors described above, the per share results reflect a decrease in weighted average diluted shares outstanding of 22.6 million primarily due to the purchase of shares as a result of the accelerated share repurchase in 2011.

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,
	2012			2011
	(in millions, except percentages)
Net sales	$	3,727.4		$	3,862.0
Income from operations		304.9			274.7
Operating margin		8.2	%		7.1	%
Restructuring and impairment charges		65.8			103.3

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The amounts included in the table below represent net sales by reporting unit and the descriptions reflect the primary products or services provided by each reporting unit. Included in these net sales amounts are sales of other products or services that may be produced within a reporting unit to meet customer needs and improve operating efficiency.

	Net Sales for the Six Months Ended June 30,
Reporting unit	2012		2011		$ Change			% Change
	(in millions, except percentages)
Magazines, catalogs and retail inserts (a)	$	865.1	$	904.3	$	(39.2	)		(4.3%	)
Variable print (a)		576.4		610.3		(33.9	)		(5.6%	)
Books and directories (a)		556.8		625.2		(68.4	)		(10.9%	)
Financial print		490.4		524.5		(34.1	)		(6.5%	)
Forms and labels		376.4		392.9		(16.5	)		(4.2%	)
Logistics		361.2		323.9		37.3			11.5%
Commercial (a)		277.7		297.3		(19.6	)		(6.6%	)
Office products		147.2		110.6		36.6			33.1%
Premedia		76.2		73.0		3.2			4.4%
Total U.S. Print and Related Services	$	3,727.4	$	3,862.0	$	(134.6	)		(3.5%	)

(a) Certain prior year amounts were restated to conform to the Company’s current reporting unit structure.

Net sales for the U.S. Print and Related Services segment for the six months ended June 30, 2012 were $3,727.4 million, a decrease of $134.6 million, or 3.5%, compared to the same period in 2011. Net sales decreased due to lower volume in both books and directories, a decline in capital markets transactions activity, decreases in pass-through paper sales, lower volume in direct mail and statement printing and price declines, partially offset by increased freight brokerage services volume, the rebate adjustment to net sales to correct for an over-accrual of rebates due to certain office products customers, and increased XBRL financial services and office products volume. An analysis of net sales by reporting unit follows:

• Magazines, catalogs and retail inserts: Sales declined due to decreases in pass-through paper sales, price pressures and reduced volume and unfavorable product mix.

• Variable print: Sales decreased as a result of lower direct mail and statement printing volume and lower pricing, partially offset by higher digital print and fulfillment volume.

• Books and directories: Sales decreased due to lower volume in consumer books, educational books and directories primarily as a result of electronic substitution and lower state funding for educational materials, as well as lower pass-through paper sales and price declines for books, partially offset by favorable pricing for directories.

• Financial print: Sales decreased primarily due to a decline in capital markets transactions activity as well as price pressures, partially offset by an increase in XBRL financial services volume.

• Forms and labels: Sales declined due to lower forms and labels volume and price declines, partially offset by sales resulting from the Stratus acquisition.

• Logistics: Sales increased primarily due to higher freight brokerage services volume as well as increased courier and expedited logistics services.

• Commercial: Sales decreased due to lower volume, unfavorable product mix and lower prices.

• Office products: Sales increased primarily as the result of the rebate adjustment, as well as new business from existing customers, favorable pricing and an increase in back-to-school supplies volume.

• Premedia: Sales increased due to higher volume, partially offset by price declines on contract renewals.

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U.S. Print and Related Services segment income from operations increased $30.2 million for the six months ended June 30, 2012 mainly driven by cost savings from restructuring activities, lower restructuring and impairment charges, lower depreciation and amortization expense as well as the rebate adjustment, partially offset by a decline in capital markets transactions activity, lower volume in books and directories, price declines and lower recovery on print-related by-products. Operating margins increased from 7.1% for the six months ended June 30, 2011 to 8.2% for the six months ended June 30, 2012, due to cost savings from restructuring activities, lower restructuring and impairment charges, lower depreciation and amortization expense and the rebate adjustment.

International

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

	Six Months Ended
	June 30,
	2012			2011
	(in millions, except percentages)
Net sales	$	1,326.1		$	1,344.9
Income from operations		72.6			87.7
Operating margin		5.5	%		6.5	%
Restructuring and impairment charges		8.9			19.0

	Net Sales for the Six Months Ended June 30,
Reporting unit	2012		2011		$ Change			% Change
	(in millions, except percentages)
Asia	$	310.8	$	294.0	$	16.8			5.7	%
Business process outsourcing		309.1		275.8		33.3			12.1	%
Latin America		221.3		239.7		(18.4	)		(7.7	%)
Europe		195.4		237.2		(41.8	)		(17.6	%)
Global Turnkey Solutions		148.9		149.4		(0.5	)		(0.3	%)
Canada		140.6		148.8		(8.2	)		(5.5	%)
Total International	$	1,326.1	$	1,344.9	$	(18.8	)		(1.4	%)

Net sales for the International segment for the six months ended June 30, 2012 were $1,326.1 million, a decrease of $18.8 million, or 1.4%, compared to the same period in 2011. The net sales decrease was due to changes in foreign exchange rates of $63.0 million, or 4.7%, a decline in capital markets transactions activity, decreased print bundling volume in Europe and lower prices, partially offset by increased volume in business process outsourcing and Asia and higher pass-through paper sales in Europe and Asia. An analysis of net sales by reporting unit follows:

• Asia: Sales increased due to higher volume in print bundling and packaging services, higher book export volume and increased pass-through paper sales, partially offset by a decline in capital markets transactions activity and price declines.

• Business process outsourcing: Sales increased due to higher pass-through sales in print management, increased volume from new and existing customers and increased outsourcing services, partially offset by changes in foreign exchange rates.

• Latin America: Sales decreased due to changes in foreign exchange rates, declines in book and commercial print volume in Chile, lower forms volume in Brazil and a decline in capital markets transactions activity, partially offset by higher commercial print volume in Argenttina and Mexico.

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• Europe: Sales decreased due to lower print bundling volume, changes in foreign exchange rates, a decline in capital markets transactions activity and a decline in directories volume, partially offset by higher pass-through paper sales and increased commercial print volume.

• Global Turnkey Solutions: Sales decreased slightly due to lower volume from the loss of a customer as well as price declines that were largely offset by volume increases from existing and new customer contracts.

• Canada: Sales decreased due to declines in forms and commercial volumes, as well as changes in foreign exchange rates and a decrease in capital markets transactions activity, partially offset by higher statement printing volume for a new customer.

Income from operations decreased $15.1 million primarily due to lower capital markets transactions activity, price pressures, decreased print bundling volume in Europe and wage inflation in Latin America and Asia, partially offset by lower restructuring and impairment charges, cost savings from restructuring activities, lower depreciation and amortization expense and increased outsourcing services and Global Turnkey Solutions volume. Operating margins decreased from 6.5% for the six months ended June 30, 2011 to 5.5% for the six months ended June 30, 2012, primarily due to unfavorable product mix, price pressures, wage inflation and higher pass-through sales in print management, partially offset by lower restructuring and impairment charges, cost savings from restructuring activities and higher volume in certain products.

Corporate

The following table summarizes unallocated operating expenses and certain items impacting comparability within the Corporate segment:

	Six Months Ended June 30,
	2012		2011
	(in millions)
Operating expenses	$	92.2	$	136.9
Restructuring and impairment charges		9.3		4.2
Acquisition-related expenses		0.8		1.3

Corporate operating expenses in the six months ended June 30, 2012 were $92.2 million, a decrease of $44.7 million compared to the same period in 2011. The decrease was driven by lower pension and postretirement benefits expenses, primarily related to the freeze on further benefit accruals for all U.S. and Canadian pension plans beginning January 1, 2012 and April 1, 2012, respectively, and lower LIFO inventory provisions, partially offset by higher healthcare costs and the Company’s reinstated 401(k) match.

LIQUIDITY AND CAPITAL RESOURCES

The following describes the Company’s cash flows for the six months ended June 30, 2012 and 2011.

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 $9.9 million for the six months ended June 30, 2012, compared to $168.1 million for the same period last year. The decrease in net cash provided by operating activities reflected shifts in the timing of supplier payments and cash collections in the first six months of 2012, lower net sales, higher healthcare costs, higher pension and postretirement contributions and payments related to the Company’s reinstated 401(k) match, partially offset by lower incentive compensation payments.

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Cash Flows From Investing Activities

Net cash used in investing activities for the six months ended June 30, 2012 was $89.9 million compared to $208.4 million for the six months ended June 30, 2011. The decline was due to cash used for the acquisitions of Helium and Journalism Online of $75.5 million during the six months ended June 30, 2011 and a decrease in capital expenditures of $34.5 million compared to the first six months of 2011. The Company expects that capital expenditures for 2012 will be approximately $200.0 million to $225.0 million, compared to $250.9 million in 2011.

Cash Flows From Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2012 was $1.6 million compared to net cash used in financing activities of $134.4 million in the same period of 2011. Proceeds from borrowings under the Company’s revolving credit agreement (the “Credit Agreement”) of $260.0 million for the six months ended June 30, 2012 were primarily used to pay the $158.6 million 5.625% senior notes that matured during the first quarter. Additionally, during the six months ended June 30, 2012, the Company received proceeds of $450.0 million from the issuance of 8.25% senior notes due March 15, 2019, which, along with cash on hand, were used to repurchase $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015. During the six months ended June 30, 2011, the Company received net proceeds from the issuance of $600.0 million of 7.25% long-term senior notes due May 15, 2018, as well as $355.0 million from net borrowings under the Credit Agreement. Cash used in financing activities during the six months ended June 30, 2011, included $500.0 million for the acquisition of the Company’s common stock under its accelerated share repurchase agreement and $480.7 million to repurchase senior notes in the aggregate principal amount of $416.2 million due February 1, 2019, January 15, 2017 and May 15, 2015.

Dividends

During the six months ended June 30, 2012, the Company paid cash dividends of $93.3 million. On July 19, 2012, the Board of Directors of the Company declared a quarterly cash dividend of $0.26 per common share payable on September 4, 2012 to the RR Donnelley shareholders of record on August 10, 2012.

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 and the Company’s revolving Credit Agreement are the Company’s primary sources of liquidity and are expected to be used for, among other things, interest and principal on the Company’s long term debt obligations, capital expenditures as necessary to support productivity improvement and growth, completion of restructuring programs, dividend payments that may be approved by the Board of Directors, acquisitions and future common stock repurchases based upon market conditions.

Cash and cash equivalents of $369.0 million as of June 30, 2012 included $31.5 million in the U.S. and $337.5 million at international locations. Cash held by foreign subsidiaries may be subject to U.S. federal or state income taxes and/or local country withholding taxes if repatriated to the U.S. In addition, repatriation of some foreign cash balances is further restricted by local laws. The Company has recognized deferred tax liabilities of $3.0 million as of June 30, 2012 and December 31, 2011 related to local withholding taxes on certain foreign earnings which are not considered to be permanently reinvested. In addition, management regularly evaluates whether foreign cash balances are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company’s foreign and domestic subsidiaries, and the expected tax consequences of any distributions by foreign subsidiaries. Changes in economic and business conditions, foreign or U.S. tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional deferred tax liabilities. 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. The 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.

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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 financial 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 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, 2012 and existing term debt structure, in addition to the $325.0 million of borrowings outstanding under the Credit Agreement, the Company could utilize an additional $1.0 billion of the $1.75 billion Credit Agreement and not be in violation of the maximum leverage ratio, 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. The current availability under the Credit Agreement at June 30, 2012 is shown in the following table:

	June 30, 2012
Availability	(in millions)
Committed Credit Agreement	$	1,750.0
Availability reduction from covenants		423.2
		1,326.8
Usage
Borrowings under the Credit Agreement		325.0
Current availability at June 30, 2012	$	1,001.8

The Company was in compliance with its debt covenants as of June 30, 2012, and expects to remain in compliance based on management’s estimates of operating and financial results for 2012 and the foreseeable future. In addition, the Company met all the conditions required to borrow under the Credit Agreement as of June 30, 2012 and management expects the Company to continue to meet the applicable borrowing conditions.

The Company also has $158.0 million in credit facilities outside of the U.S., most of which are uncommitted. As of June 30, 2012, the Company had $61.3 million in outstanding letters of credit, of which $38.9 million were issued under the Credit Agreement. The failure of a financial institution supporting the Credit Agreement would reduce the size of our committed facility unless a replacement institution were added. Currently, the Credit Agreement is supported by twenty-one U.S. and international financial institutions. The Company’s debt maturities as of June 30, 2012 are shown in the following table:

	Debt Maturity Schedule
	Total		2012		2013		2014		2015		2016		Thereafter
Senior notes, debentures and borrowings under the Credit Agreement (a)	$	3,730.4	$	325.0	$	—	$	258.2	$	300.0	$	350.0	$	2,497.2
Capital lease obligations		4.1		0.7		0.9		0.9		1.0		0.6		—
Other (b)		20.2		17.0		0.1		0.1		3.0		—		—
Total	$	3,754.7	$	342.7		1.0		259.2		304.0		350.6		2,497.2

(a) Excludes debt adjustment for fair value hedges of $12.6 million related to the Company’s 4.95% senior notes due April 1, 2014 and 8.25% senior notes due March 15, 2019, which does not represent a contractual commitment with a fixed amount or maturity date, and debt discount of $5.9 million

(b) Includes miscellaneous debt obligations

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On August 1, 2012, Standard & Poor’s Rating Services (“S&P”) lowered the Company’s long-term corporate credit and senior unsecured debt ratings from BB+ with a negative outlook to BB with a stable outlook.

On June 13, 2012, Moody’s Investors Service (“Moody’s”) lowered the Company’s senior unsecured debt ratings from Ba1 to Ba2 and reaffirmed a negative outlook.

As a result of the June 13, 2012 downgrade by Moody’s, the interest rate on the Company’s 11.25% senior notes due February 1, 2019 was further increased from 11.75%, as of the May 16, 2011 downgrade by both of the rating agencies, to 12.0%. The August 1, 2012 downgrade by S&P will increase the interest rate on these notes from 12.0% to 12.25%. The terms and conditions of future borrowings may also be impacted as a result of the ratings downgrades.

Acquisitions

The Company expects to pay approximately $70.5 million to acquire EDGAR Online. The Company anticipates funding this obligation through a combination of cash on hand and borrowings under the Credit Agreement.

During the three months ended December 31, 2011, the Company paid $29.0 million, net of cash acquired, to purchase Stratus. During the three months ended September 30, 2011, the Company paid $37.4 million, net of cash acquired, to purchase LibreDigital, Genesis and Sequence. During the three months ended June 30, 2011, the Company paid $55.9 million, net of cash acquired, to purchase the remaining equity of Helium. Additionally, during the three months ended March 31, 2011, the Company paid $19.6 million, net of cash acquired, to purchase Journalism Online. The Company financed the acquisitions with cash on hand.

Debt Issuances

On March 13, 2012, the Company issued $450.0 million of 8.25% senior notes due March 15, 2019. Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2012. The net proceeds from the offering and cash on hand were used to repurchase $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015.

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 an initial $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 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 Credit Agreement. On September 28, 2011, the Company repurchased an additional $11.6 million of the 11.25% senior notes due February 1, 2019.

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, 2012, approximately 73.4% of the Company’s outstanding debt was comprised of fixed-rate debt. At June 30, 2012, the Company’s exposure to rate fluctuations on variable-interest borrowings was $1,003.0 million, including $658.0 million notional value of interest rate swap agreements (See Note 15, Derivatives, to the Condensed Consolidated Financial Statements) and $345.0 million in borrowings under the Credit Agreement, international credit facilities and other long-term debt.

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

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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, 2012, the aggregate notional amount of outstanding foreign exchange forward contracts was approximately $114.6 million (see Note 15, Derivatives, to the Condensed Consolidated Financial Statements). Net unrealized gains from these foreign exchange forward contracts were $0.5 million at June 30, 2012. The Company does not use derivative financial instruments for trading or speculative purposes.

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, 2012 and December 31, 2011 by approximately $125.5 million and $122.9 million, respectively.

OTHER INFORMATION

Environmental, Health and Safety

For a discussion of certain environmental, health and safety issues involving the Company, see Note 13, Commitments and Contingencies, to the Condensed Consolidated Financial Statements.

Litigation and Contingent Liabilities

For a discussion of certain litigation involving the Company, see Note 13, Commitments and Contingencies, to the Condensed Consolidated Financial Statements.

New Accounting Pronouncements and Pending Accounting Standards

During the six months ended June 30, 2012, the Company adopted various accounting standards. See Note 18, New Accounting Pronouncements, to the Condensed Consolidated Financial Statements for a description of the accounting standards adopted during the six months ended June 30, 2012.

Pending standards and their estimated effect on the Company’s consolidated financial statements are described in Note 18, New Accounting Pronouncements, to the Condensed Consolidated Financial Statements.

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 Quarterly Report on 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;

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• successful execution and integration of acquisitions;

• 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, systems 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 and the participants’ ability to perform to our contractual lending and insurance agreements;

• changes in technology, including the pace of 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;

• 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 failure to properly use and protect customer information and data;

• 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;

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• 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 on Form 10-Q 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 on Form 10-Q to reflect any new events or any change in conditions or circumstances.

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, 2012, 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, 2012 were effective in ensuring information required to be disclosed in our SEC reports 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, 2012 that had materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

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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 (a)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (b)
April 1, 2012—April 30, 2012		—	$	—		—	$	500,000,000
May 1, 2012—May 31, 2012		11,064		10.29		—	$	500,000,000
June 1, 2012—June 30, 2012		—		—		—	$	500,000,000
Total		11,064	$	10.29		—

(a) Shares withheld for tax liabilities upon vesting of equity awards

(b) 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.

As part of the share repurchase program the Company entered into an accelerated share repurchase agreement (“ASR”) in 2011 with an investment bank under which the Company repurchased $500.0 million of its common stock, receiving an initial delivery of 19.9 million shares on May 10, 2011 and an additional 9.3 million shares on November 17, 2011.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5: Other Information

In June 2011, the 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 the statement of changes 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. The Company adopted this standard as of January 1, 2012. The table below reflects the retrospective application for the years ended December 31, 2011, 2010 and 2009:

55

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	2011			2010			2009
Net earnings (loss)	$	(121.1	)	$	217.1		$	(21.4	)
Other comprehensive income (loss), net of tax:
Translation adjustments		(70.1	)		12.6			99.2
Adjustment for net periodic pension and postretirement benefit cost		(303.1	)		42.0			(65.7	)
Change in fair value of derivatives		0.7			0.3			2.3
Other comprehensive income (loss)		(372.5	)		54.9			35.8
Comprehensive income (loss)		(493.6	)		272.0			14.4
Less: comprehensive income (loss) attributable to noncontrolling interests		1.9			(4.3	)		6.0
Comprehensive income (loss) attributable to RR Donnelley common shareholders	$	(495.5	)	$	276.3		$	8.4

Income tax expense (benefit) allocated to each component of other comprehensive income (loss) for the years ended December 31, 2011, 2010 and 2009 was as follows:

	2011									2010						2009
	Before Tax Amount			Income Tax Expense (Benefit)			Net of Tax Amount			Before Tax Amount		Income Tax Expense		Net of Tax Amount		Before Tax Amount			Income Tax Expense (Benefit)			Net of Tax Amount
Translation adjustments	$	(70.1	)	$	—		$	(70.1	)	$	12.6	$	—	$	12.6	$	99.2		$	—		$	99.2
Adjustment for net periodic pension and postretirement benefit cost		(485.9	)		(182.8	)		(303.1	)		68.6		26.6		42.0		(101.9	)		(36.2	)		(65.7	)
Change in fair value of derivatives		1.1			0.4			0.7			0.6		0.3		0.3		3.8			1.5			2.3
Other comprehensive income (loss)	$	(554.9	)	$	(182.4	)	$	(372.5	)	$	81.8	$	26.9	$	54.9	$	1.1		$	(34.7	)	$	35.8

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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 February 16, 2012, filed on February 21, 2012)
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)
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 (filed herewith)*
10.3	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)*
10.4	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)*
10.5	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)*
10.6	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)*
10.7	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)*
10.8	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)*

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10.9	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)*
10.10	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)*
10.11	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)*
10.12	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)*
10.13	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)*
10.14	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)*
10.15	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)*
10.16	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)*
10.17	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)*
10.18	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)*
10.19	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)*
10.20	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)*
10.21	Form of Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.29 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed May 2, 2012)*
10.22	Form of Cash Bonus Award Agreement for certain executive officers (incorporated by reference to Exhibit 10.30 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed May 2, 2012)*
10.23	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)*

58

10.24	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)*
10.25	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)*
10.26	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)*
10.27	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)*
10.28	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)*
10.29	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)*
10.30	Amended Management by Objective Plan (incorporated by reference to Exhibit 10.36 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 22, 2012)*
10.31	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)*
10.32	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, 2011, filed on February 22, 2012)
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)
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)

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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 and received 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.

60

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 1, 2012

61

EX-10.2

Exhibit 10.2

RR DONNELLEY NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

Each Director shall receive (A) an annual retainer fee (a “Retainer”) to be paid in the form of a grant of Restricted Stock Units (“RSUs”) on the date of the Company’s Annual Meeting of Stockholders pursuant to the Company’s Performance Incentive Plan in effect on such date (the “Plan”), and (B) a per board meeting fee (“Meeting Fee’), each as described further below.

Meeting Fee:

1. Each Director shall be paid $5,000 in cash for each meeting of the Board attended in person or telephonically.

2. Meeting Fees shall be paid semi-annually following the Board’s October and April meetings of each year.

Retainer:

1. Each director shall be entitled to a Retainer in the amount equal to the applicable amounts described in the table in paragraph 7 below. If any director joins the Board on a date other than the date of the Company’s Annual Meeting, then (i) a pro-rata portion of the applicable Retainer from the date joined to the next Annual Meeting date shall be granted and (ii) the special deferral election under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), that applies when an individual first becomes eligible to participate in a plan shall apply in lieu of paragraphs 3 and 4 hereof.

2. RSUs will be payable in three equal annual installments beginning on the first anniversary of the grant date, unless a Director makes a deferral election pursuant to paragraph 3 or 4 hereof, but will be payable in full on the earlier of (i) the date the Director ceases to be a Director of the Company and (ii) a Change in Control (as defined in the Plan).

3. Directors have the option to defer payment of any installment to the later of (i) the date the Director ceases to be a Director of the Company and (ii) such other deferral period as may be required by section 409A of the Code.

4. A Director who does not irrevocably make an initial deferral election pursuant to paragraph 3 hereof before the December 31^st immediately preceding the date of the Company’s Annual Meeting of Stockholders at which the Retainer will be granted shall have another opportunity to elect to defer such Retainer. Such a subsequent deferral election must become irrevocable no later than the day before the Company’s Annual Meeting of Stockholders at which the Retainer will be granted, and the election will become effective twelve months thereafter. The deferral period elected by a Director pursuant to this paragraph 4 must end no earlier than the sixth anniversary of the date the Retainer was granted.

5. Dividend equivalents on the awards are deferred (credited with interest quarterly at the same rate as five-year U.S. government bonds) and paid out at the same time the corresponding portion of the award becomes payable.

6. The Company shall make payment of the RSUs in Company common stock.

7. The schedule of Retainer amounts are as follows:

	Base Retainer:
Director	$	220,000
Additional Retainer:
Chairman of the Board	$	150,000
Chairman of Audit Committee	$	35,000
Chairs of other Committees	$	20,000
Audit Committee member other than Chairman	$	20,000

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 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 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 1, 2012

/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 1, 2012

/S/  DANIEL N. LEIB

Daniel N. Leib

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

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

SECTION 1350, CHAPTER 63 OF TITLE 18

OF THE UNITED STATES CODE (18 U.S.C. 1350),

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, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas J. Quinlan, III, President and 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 1, 2012	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(b) AND RULE 15d-14(b)

SECTION 1350, CHAPTER 63 OF TITLE 18

OF THE UNITED STATES CODE (18 U.S.C. 1350),

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, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel N. Leib, Executive Vice President and 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 1, 2012	Daniel N. Leib Executive Vice President and Chief Financial Officer

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2012

Summary Of Income Tax Contingencies

Balance at December 31, 2011	$	76.4
Additions for tax positions of the current year		2.8
Additions for tax positions of the prior year		0.5
Reductions for tax positions of prior years		(24.6	)
Settlements during the year		(1.7	)
Balance at June 30, 2012	$	53.4

XML

Restructuring And Impairment Charges (Restructuring Reserve) (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012
Restructuring Cost and Reserve [Line Items]
Balance at the beginning	$ 87.7
Restructuring Charges	66.4
Foreign Exchange and Other	1.9
Cash Paid	(56.4)
Balance at the end	99.6
Employee Termination
Restructuring Cost and Reserve [Line Items]
Balance at the beginning	27.2
Restructuring Charges	50.6
Foreign Exchange and Other	(0.5)
Cash Paid	(37.7)
Balance at the end	39.6
Multi-employer Pension Withdrawal Obligations
Restructuring Cost and Reserve [Line Items]
Balance at the beginning	27.9
Restructuring Charges	0.1
Cash Paid	(1.2)
Balance at the end	26.8
Lease Terminations and Other
Restructuring Cost and Reserve [Line Items]
Balance at the beginning	32.6
Restructuring Charges	15.7
Foreign Exchange and Other	2.4
Cash Paid	(17.5)
Balance at the end	$ 33.2

XML

Goodwill And Other Intangible Assets (Goodwill) (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Goodwill [Line Items]
Foreign exchange and other adjustments	$ (3.7)
Goodwill	4,516.1	4,521.0
Accumulated impairment losses	(2,297.7)	(2,298.9)
Total	2,218.4	2,222.1
U.S. Print and Related Services
Goodwill [Line Items]
Foreign exchange and other adjustments	(0.6)
Goodwill	3,242.0	3,242.6
Accumulated impairment losses	(1,209.5)	(1,209.5)
Total	2,032.5	2,033.1
International
Goodwill [Line Items]
Foreign exchange and other adjustments	(3.1)
Goodwill	1,274.1	1,278.4
Accumulated impairment losses	(1,088.2)	(1,089.4)
Total	$ 185.9	$ 189.0

XML

Debt (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended	6 Months Ended		6 Months Ended				1 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 8.25% Senior Notes Due March 15, 2019	Mar. 13, 2012 8.25% Senior Notes Due March 15, 2019	Jun. 30, 2012 4.95% Senior Notes Due April 1, 2014	Jun. 30, 2012 5.50% Senior Notes Due May 15, 2015	Jun. 30, 2012 7.25% Senior Notes Due May 15, 2018	Jun. 01, 2011 7.25% Senior Notes Due May 15, 2018	Sep. 28, 2011 11.25% Senior Notes Due February 1, 2019	Jun. 30, 2012 11.25% Senior Notes Due February 1, 2019	Dec. 31, 2011 11.25% Senior Notes Due February 1, 2019	Jun. 30, 2012 6.125% Senior Notes Due January 15, 2017	Jun. 30, 2012 5.625% Senior Notes Due January 15, 2012
Debt Disclosure [Line Items]
Amount of difference between fair value and book value	$ 36.9		$ 36.9		$ 80.1
Debt instrument, face amount						450.0	450.0				600.0
Interest rate						8.25%	8.25%	4.95%	5.50%	7.25%	7.25%	11.25%		11.25%	6.125%	5.625%
Maturity date						Mar. 15, 2019		Apr. 01, 2014	May 15, 2015	May 15, 2018		Feb. 01, 2019	Feb. 01, 2019		Jan. 15, 2017	Jan. 15, 2012
Repurchase of debt								341.8	100.0			11.6		216.2	100.0	158.6
Pre-tax loss on debt extinguishment	23.2		12.1		69.9
Gain due to termination of the related interest rate swaps	11.1
Interest income	$ 4.1	$ 3.6	$ 7.7	$ 6.2

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Employee Benefits (Components of the Estimated Net Pension and Postretirement Benefits (Income) Expense) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1.6	$ 21.5	$ 3.5	$ 42.8
Interest cost	47.4	48.9	94.8	97.0
Expected return on assets	(65.8)	(67.3)	(131.6)	(134.4)
Amortization, net	6.8	12.8	13.9	25.0
Net Defined Benefit Plan (income) expense	(10.0)	15.9	(19.4)	30.4
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.6	2.3	3.3	4.6
Interest cost	4.6	6.2	9.2	12.4
Expected return on assets	(3.4)	(3.8)	(6.9)	(7.6)
Amortization, net	(4.9)	(1.3)	(9.9)	(2.5)
Net Defined Benefit Plan (income) expense	$ (2.1)	$ 3.4	$ (4.3)	$ 6.9

XML

Income Taxes (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Recognized tax benefits	$ 24.6	$ 24.6
Amount of unrecognized tax benefit that will decrease within 12 months	$ 18.8	$ 18.8

XML

Property, Plant And Equipment (Components Of Company's Property, Plant And Equipment) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,283.0	$ 7,335.0
Less: Accumulated depreciation	(5,564.1)	(5,480.4)
Total	1,718.9	1,854.6
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	104.0	107.4
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,178.2	1,173.2
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 6,000.8	$ 6,054.4

XML

Earnings per Share Attributable to RR Donnelley Common Shareholders (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Earnings Per Share

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	88.8	$	12.2	$	126.2	$	46.1
Denominator:
Weighted average number of common shares outstanding		180.7		196.7		180.1		201.9
Dilutive options and awards (a)		1.1		2.8		1.8		2.6
Diluted weighted average number of common shares outstanding		181.8		199.5		181.9		204.5
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.06	$	0.70	$	0.23
Diluted	$	0.49	$	0.06	$	0.69	$	0.23
Dividends declared per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a) Dilutive options and awards take into consideration the dilution of certain unvested restricted stock awards, performance share unit awards and unexercised stock option awards. For the three and six months ended June 30, 2012, restricted stock units of 2.5 million and 2.3 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2012, performance share units of 0.5 million were excluded as the performance targets upon which issuance of these shares is contingent had not yet been achieved as of the end of the current period. For the three and six months ended June 30, 2012, options to purchase 4.5 million shares and 4.2 million shares, respectively, were anti-dilutive because the option exercise price exceeded the fair value of the stock.

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Derivatives (Gains (Losses) Related To Derivatives Not Designated As Hedges) (Detail) (Not Designated as Hedging Instrument, Selling, General and Administrative Expenses, Foreign Exchange Forward Contracts, USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Not Designated as Hedging Instrument | Selling, General and Administrative Expenses | Foreign Exchange Forward Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Total gain recognized in the consolidated statements of operations	$ 3.1	$ (0.1)	$ 2.4	$ (1.7)

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Share-Based Compensation (Narrative) (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 7.4	$ 9.9	$ 14.8	$ 16.4
Stock options granted			1,221,000	200,000
Weighted average fair market value of options granted			$ 2.96	$ 4.39
Intrinsic value of options exercised	0	0.1	1.2	1.0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	0.7	0.6	1.8	1.4
Unrecognized share-based compensation cost	4.5		4.5
Options that are expected to vest	1,900,000		1,900,000
Weighted average grant date fair market value, options expected to be exercised			$ 3.04
Unrecognized compensation expense, weighted-average period of recognition			2 years 7 months 6 days
Performance Share Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	0.5	0.3	1.0	0.6
Unrecognized share-based compensation cost	3.8		3.8
Unrecognized compensation expense, weighted-average period of recognition			2 years
Granted, shares			233,000	235,000
Equity instruments other than options, maximum expected grants in period			233,000	235,000
Performance Share Unit Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, minimum expected grants in period			116,500
Equity instruments other than options, maximum expected grants in period			233,000
Performance Share Unit Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, minimum expected grants in period				117,500
Equity instruments other than options, maximum expected grants in period				235,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	6.2	9.0	12.0	14.4
Unrecognized share-based compensation cost	$ 24.6		$ 24.6
Unrecognized compensation expense, weighted-average period of recognition			2 years 2 months 12 days
Equity instruments other than options expected to vest, shares	3,100,000		3,100,000
Equity instruments other than options expected to vest, weighted-average grant date fair value	$ 11.79		$ 11.79
Granted, shares			1,048,000

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Fair Value Measurement (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values reduced by estimated costs to sell	$ 0.4		$ 0.4
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held and used, Impairment charge	1.6	12.1	7.2	14.1
Assets held and used, long lived, gross	6.5	20.3	16.3	82.6
Long-lived assets held for sale or disposal, Impairment charge	7.6	12.4	11.4	18.2
Assets held for sale, long lived, gross	16.4	12.4	21.7	19.5
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held and used, Fair value measurement	4.9	8.2	9.1	68.5
Long-lived assets held for sale or disposal, Impairment charge		8.2		68.5
Long-lived assets held for sale or disposal, Fair value measurement	$ 9.2	$ 0	$ 10.7	$ 1.3

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Income Taxes (Unrecognized Tax Benefits) (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Balance at December 31, 2011	$ 76.4
Additions for tax positions of the current year	2.8
Additions for tax positions of the prior year	0.5
Reductions for tax positions of prior years	(24.6)
Settlements during the year	(1.7)
Balance at June 30, 2012	$ 53.4

XML

Derivatives (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			6 Months Ended		6 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 8.25% Senior Notes Due March 15, 2019	Mar. 13, 2012 8.25% Senior Notes Due March 15, 2019	Jun. 30, 2012 4.95% Senior Notes Due April 1, 2014	Jun. 30, 2012 Fair Value Hedging	Jun. 30, 2011 Fair Value Hedging	Jun. 30, 2012 Fair Value Hedging	Jun. 30, 2011 Fair Value Hedging
Derivative [Line Items]
Aggregate notional value of foreign exchange forward contracts	$ 114.6		$ 114.6		$ 78.3
Derivative, inception date						Mar. 13, 2012		Apr. 09, 2010
Notional amount of interest rate fair value hedge derivatives						400.0		600.0
Debt instrument, face amount						450.0	450.0
Interest rate						8.25%	8.25%	4.95%
Maturity date						Mar. 15, 2019		Apr. 01, 2014
Terminated portion of interest rate swap agreement, notional amount								342.0
Repurchase of debt								341.8
Proceeds from termination of interest rate swaps			11.0
Reduction to interest expense	$ 63.6	$ 61.3	$ 124.3	$ 119.2					$ 2.0	$ 2.5	$ 4.0	$ 5.1

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2012

Final Purchase Price Allocation For Acquisitions

Based on the valuations, the final purchase price allocations for these acquisitions were as follows:

Accounts receivable	$	6.0
Inventories		2.3
Prepaid expenses and other current assets		0.4
Property, plant and equipment and other long-term assets		16.8
Amortizable intangible assets		16.2
Goodwill		117.8
Accounts payable and accrued liabilities		(8.2	)
Other noncurrent liabilities		(2.9	)
Deferred taxes-net		14.2
Total purchase price-net of cash acquired		162.6
Less: fair value of Company’s previously held investments in Helium		13.9
Less: fair value of contingent consideration		6.8
Net cash paid	$	141.9

Pro Forma Financial Information

Pro forma adjustments are tax-effected at the applicable statutory tax rates.

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net sales	$	2,528.6	$	2,635.2	$	5,053.5	$	5,230.0
Net earnings attributable to RR Donnelley common shareholders		88.8		1.6		126.5		42.0
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.01	$	0.70	$	0.21
Diluted	$	0.49	$	0.01	$	0.70	$	0.21

Pro Forma Adjustments Affecting Net Earnings

the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
Depreciation and amortization of purchased assets, pre-tax	$	—		$	(0.8	)	$	—		$	(1.7	)
Acquisition-related expenses, pre-tax		0.1			0.2			0.1			0.5
Restructuring and impairment charges, pre-tax		—			—			—			(0.4	)
Inventory fair value adjustment, pre-tax		—			—			0.3			(0.3	)
Other pro forma adjustments, pre-tax		—			(10.3	)		0.1			(1.1	)
Income taxes		(0.1	)		1.3			(0.2	)		2.9

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Goodwill And Other Intangible Assets (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Goodwill And Other Intangible Asset [Line Items]
Amortization expense for other intangible assets	$ 22.1	$ 28.8	$ 46.4	$ 57.3

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Acquisitions (Final Purchase Price Allocations For Acquisitions) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Business Acquisition [Line Items]
Accounts receivable	$ 6.0
Inventories	2.3
Prepaid expenses and other current assets	0.4
Property, plant and equipment and other long-term assets	16.8
Amortizable intangible assets	16.2
Goodwill	117.8
Accounts payable and accrued liabilities	(8.2)
Other noncurrent liabilities	(2.9)
Deferred taxes-net	14.2
Total purchase price-net of cash acquired	162.6
Less: fair value of Company's previously held investments in Helium	13.9
Less: fair value of contingent consideration	6.8
Net cash paid	$ 141.9

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Fair Value Measurement (Assets Measured At Fair Value On A Nonrecurring Basis) (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Fair Value, Measurements, Nonrecurring	Jun. 30, 2011 Fair Value, Measurements, Nonrecurring	Jun. 30, 2012 Fair Value, Measurements, Nonrecurring	Jun. 30, 2011 Fair Value, Measurements, Nonrecurring	Jun. 30, 2012 Fair Value, Measurements, Nonrecurring Fair Value, Inputs, Level 3	Jun. 30, 2011 Fair Value, Measurements, Nonrecurring Fair Value, Inputs, Level 3	Jun. 30, 2012 Fair Value, Measurements, Nonrecurring Fair Value, Inputs, Level 3	Jun. 30, 2011 Fair Value, Measurements, Nonrecurring Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held and used, Impairment charge				$ 1.6	$ 12.1	$ 7.2	$ 14.1
Long-lived assets held for sale or disposal, Impairment charge				7.6	12.4	11.4	18.2		8.2		68.5
Total, Impairment charge	18.0	32.4		9.2	24.5	18.6	32.3
Long-lived assets held and used, Fair value measurement								4.9	8.2	9.1	68.5
Long-lived assets held and used, Net book value				8.7	65.8	8.7	65.8
Long-lived assets held for sale or disposal, Fair value measurement								9.2	0	10.7	1.3
Long-lived assets held for sale or disposal, Net book value				8.1	1.3	8.1	1.3
Total, Fair value measurement								14.1	8.2	19.8	69.8
Total assets	$ 8,099.8	$ 9,026.2	$ 8,281.7	$ 16.8	$ 67.1	$ 16.8	$ 67.1

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Total Fair Value Of Forward Contracts And Fair Value Hedges

	June 30, 2012		December 31, 2011
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.6	$	0.3
Accrued liabilities		0.1		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	12.6	$	19.9

Gain (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,
		2012		2011			2012		2011
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	3.1	$	(0.1	)	$	2.4	$	(1.7	)

Schedule Of Gains (Losses) For Derivatives Designated As Fair Value Hedges

	Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Fair Value Hedges
Interest rate swaps	Investment and other (income) expense-net	$	(8.7	)	$	(7.2	)	$	(3.5	)	$	(3.3	)
Hedged items	Investment and other (income) expense-net		9.5			6.7			3.3			2.6
Total (gain) loss recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other (income) expense-net	$	0.8		$	(0.5	)	$	(0.2	)	$	(0.7	)

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Restructuring And Impairment Charges (Net Restructuring And Impairment Charges) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Restructuring Cost and Reserve [Line Items]
Employee Terminations	$ 13.8	$ 29.2	$ 50.6	$ 54.0
Total	34.0	75.7	84.0	126.5
U.S. Print and Related Services
Restructuring Cost and Reserve [Line Items]
Employee Terminations	10.5	22.0	38.9	36.8
Other Charges	8.6	19.5	11.9	36.0
Impairment	7.0	23.6	15.0	30.5
Total	26.1	65.1	65.8	103.3
International
Restructuring Cost and Reserve [Line Items]
Employee Terminations	3.0	6.7	6.8	14.6
Other Charges	0.5	2.6	1.1	3.4
Impairment		0.5	1.0	1.0
Total	3.5	9.8	8.9	19.0
Corporate
Restructuring Cost and Reserve [Line Items]
Employee Terminations	0.3	0.5	4.9	2.6
Other Charges	2.8	0.1	2.8	0.7
Impairment	1.3	0.2	1.6	0.9
Total	4.4	0.8	9.3	4.2
Total [Member]
Restructuring Cost and Reserve [Line Items]
Employee Terminations	13.8	29.2	50.6	54.0
Other Charges	11.9	22.2	15.8	40.1
Impairment	8.3	24.3	17.6	32.4
Total	$ 34.0	$ 75.7	$ 84.0	$ 126.5

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Segment Information (Segment Reporting Information) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Total Sales	$ 2,563.9	$ 2,645.7	$ 5,118.6	$ 5,265.4
Intersegment Sales	(35.3)	(22.3)	(65.1)	(58.5)
Net Sales	2,528.6	2,623.4	5,053.5	5,206.9
Income (Loss) from Operations	163.9	116.1	285.3	225.5
Depreciation and Amortization	120.9	140.7	245.9	280.9
Capital Expenditures	48.4	81.1	93.7	128.2
Assets of Operations	8,099.8	9,026.2	8,099.8	9,026.2	8,281.7
U.S. Print and Related Services
Segment Reporting Information [Line Items]
Total Sales	1,856.4	1,927.1	3,747.1	3,885.7
Intersegment Sales	(10.4)	(6.2)	(19.7)	(23.7)
Net Sales	1,846.0	1,920.9	3,727.4	3,862.0
Income (Loss) from Operations	165.7	132.8	304.9	274.7
Depreciation and Amortization	83.3	98.9	170.9	198.8
Capital Expenditures	27.3	38.1	54.4	55.4
Assets of Operations	5,586.9	6,407.2	5,586.9	6,407.2
International
Segment Reporting Information [Line Items]
Total Sales	707.5	718.6	1,371.5	1,379.7
Intersegment Sales	(24.9)	(16.1)	(45.4)	(34.8)
Net Sales	682.6	702.5	1,326.1	1,344.9
Income (Loss) from Operations	42.0	43.6	72.6	87.7
Depreciation and Amortization	27.1	31.6	54.6	62.0
Capital Expenditures	6.9	21.1	18.0	46.9
Assets of Operations	2,191.5	2,483.3	2,191.5	2,483.3
Operating Segments
Segment Reporting Information [Line Items]
Total Sales	2,563.9	2,645.7	5,118.6	5,265.4
Intersegment Sales	(35.3)	(22.3)	(65.1)	(58.5)
Net Sales	2,528.6	2,623.4	5,053.5	5,206.9
Income (Loss) from Operations	207.7	176.4	377.5	362.4
Depreciation and Amortization	110.4	130.5	225.5	260.8
Capital Expenditures	34.2	59.2	72.4	102.3
Assets of Operations	7,778.4	8,890.5	7,778.4	8,890.5
Corporate
Segment Reporting Information [Line Items]
Income (Loss) from Operations	(43.8)	(60.3)	(92.2)	(136.9)
Depreciation and Amortization	10.5	10.2	20.4	20.1
Capital Expenditures	14.2	21.9	21.3	25.9
Assets of Operations	$ 321.4	$ 135.7	$ 321.4	$ 135.7

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Share-Based Compensation (Nonvested Performance Share Unit Awards) (Detail) (Performance Share Units [Member], USD $)	6 Months Ended
	Jun. 30, 2012
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at December 31, 2011	$ 15.54
Granted, Weighted-Average Grant Date Fair Value	$ 10.12
Nonvested at June 30, 2012	$ 12.84
Nonvested at December 31, 2011	235,000
Granted, shares	233,000
Nonvested at June 30, 2012	468,000

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Property, Plant And Equipment (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 92.6	$ 106.1	$ 188.0	$ 212.3
Book value of assets held for sale	$ 24.9		$ 24.9		$ 20.2

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Inventories

6 Months Ended

Jun. 30, 2012

Inventories

3. Inventories

	June 30, 2012			December 31, 2011
Raw materials and manufacturing supplies	$	232.9		$	218.0
Work in process		154.9			171.2
Finished goods		213.6			218.1
LIFO reserve		(96.4	)		(96.4	)
Total	$	505.0		$	510.9

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Equity (Summary Of The Company's Equity Activity) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Equity, Class of Treasury Stock [Line Items]
Beginning Balance			$ 1,062.2	$ 2,245.4
Net earnings	89.0	12.5	126.9	46.8
Other comprehensive income	(60.7)	82.0	(17.9)	114.9
Stock-based compensation			14.8	16.4
Issuance of share-based awards, net of withholdings			(11.8)	(6.4)
Acquisition of common stock				(500.0)
Cash dividends paid			(93.3)	(107.7)
Distributions to noncontrolling interests			(1.2)	(2.7)
Ending Balance	1,079.7	1,806.7	1,079.7	1,806.7
Total RR Donnelley's Shareholders' Equity
Equity, Class of Treasury Stock [Line Items]
Beginning Balance			1,042.7	2,224.3
Net earnings			126.2	46.1
Other comprehensive income			(17.9)	114.7
Stock-based compensation			14.8	16.4
Issuance of share-based awards, net of withholdings			(11.8)	(6.4)
Acquisition of common stock				(500.0)
Cash dividends paid			(93.3)	(107.7)
Ending Balance	1,060.7	1,787.4	1,060.7	1,787.4
Noncontrolling Interest
Equity, Class of Treasury Stock [Line Items]
Beginning Balance			19.5	21.1
Net earnings			0.7	0.7
Other comprehensive income				0.2
Distributions to noncontrolling interests			(1.2)	(2.7)
Ending Balance	$ 19.0	$ 19.3	$ 19.0	$ 19.3

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Acquisitions (Pro Forma Financial Information) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Business Acquisition [Line Items]
Net sales	$ 2,528.6	$ 2,635.2	$ 5,053.5	$ 5,230.0
Net earnings attributable to RR Donnelley common shareholders	$ 88.8	$ 1.6	$ 126.5	$ 42.0
Basic	$ 0.49	$ 0.01	$ 0.70	$ 0.21
Diluted	$ 0.49	$ 0.01	$ 0.70	$ 0.21

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Restructuring and Impairment Charges (Tables)

6 Months Ended

Jun. 30, 2012

Net Restructuring And Impairment Charges

For the three months ended June 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2012								Three Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	10.5	$	8.6	$	7.0	$	26.1	$	22.0	$	19.5	$	23.6	$	65.1
International		3.0		0.5		—		3.5		6.7		2.6		0.5		9.8
Corporate		0.3		2.8		1.3		4.4		0.5		0.1		0.2		0.8
Total	$	13.8	$	11.9	$	8.3	$	34.0	$	29.2	$	22.2	$	24.3	$	75.7

For the six months ended June 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2012								Six Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	38.9	$	11.9	$	15.0	$	65.8	$	36.8	$	36.0	$	30.5	$	103.3
International		6.8		1.1		1.0		8.9		14.6		3.4		1.0		19.0
Corporate		4.9		2.8		1.6		9.3		2.6		0.7		0.9		4.2
Total	$	50.6	$	15.8	$	17.6	$	84.0	$	54.0	$	40.1	$	32.4	$	126.5

Restructuring Reserve

Activity impacting the Company’s restructuring reserve for the six months ended June 30, 2012 was as follows:

	December 31, 2011		Restructuring Charges		Foreign Exchange and Other			Cash Paid			June 30, 2012
Employee terminations	$	27.2	$	50.6	$	(0.5	)	$	(37.7	)	$	39.6
Multi-employer pension withdrawal obligations		27.9		0.1		—			(1.2	)		26.8
Lease terminations and other		32.6		15.7		2.4			(17.5	)		33.2
Total	$	87.7	$	66.4	$	1.9		$	(56.4	)	$	99.6

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Goodwill

	U.S. Print and Related  Services			International			Total
Net book value as of December 31, 2011
Goodwill	$	3,242.6		$	1,278.4		$	4,521.0
Accumulated impairment losses		(1,209.5	)		(1,089.4	)		(2,298.9	)
Total		2,033.1			189.0			2,222.1
Foreign exchange and other adjustments		(0.6	)		(3.1	)		(3.7	)
Net book value as of June 30, 2012
Goodwill		3,242.0			1,274.1			4,516.1
Accumulated impairment losses		(1,209.5	)		(1,088.2	)		(2,297.7	)
Total	$	2,032.5		$	185.9		$	2,218.4

Components Of Other Intagible Assets

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationship intangibles	$	1,161.0	$	(654.2	)	$	506.8	$	1,164.4	$	(613.6	)	$	550.8
Patents		98.3		(97.9	)		0.4		98.3		(95.8	)		2.5
Trademarks, licenses and agreements		28.7		(25.2	)		3.5		28.7		(24.4	)		4.3
Trade names		23.9		(10.2	)		13.7		23.9		(9.3	)		14.6
Total amortizable intangible assets		1,311.9		(787.5	)		524.4		1,315.3		(743.1	)		572.2
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total other intangible assets	$	1,330.0	$	(787.5	)	$	542.5	$	1,333.4	$	(743.1	)	$	590.3

Estimated Annual Amortization Expense Related To Intangible Assets

The following table outlines the estimated annual amortization expense related to other intangible assets as of June 30, 2012:

For the year ending December 31,	Amount
2012	$	89.9
2013		86.6
2014		84.0
2015		76.4
2016		49.1
2017 and thereafter		184.8
Total	$	570.8

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Employee Benefits (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended				6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Pension Benefits	Dec. 31, 2012 Pension Benefits Subsequent Event [Member]	Jun. 30, 2012 Postretirement Benefits	Dec. 31, 2012 Postretirement Benefits Subsequent Event [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension expected contributions		$ 56.6	$ 35.2	$ 51.5		$ 5.1
Postretirement expected contributions - next year	76	76
Postretirement expected contributions - current year					165		9
Recognized expense	$ 7.3	$ 16.1

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Acquisitions (Pro Forma Adjustments Affecting Net Earnings) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Business Acquisition [Line Items]
Depreciation and amortization of purchased assets, pre-tax		$ (0.8)		$ (1.7)
Acquisition-related expenses, pre-tax	0.1	0.2	0.1	0.5
Restructuring and impairment charges, pre-tax				(0.4)
Inventory fair value adjustment, pre-tax			0.3	(0.3)
Other pro forma adjustments, pre-tax		(10.3)	0.1	(1.1)
Income taxes	$ (0.1)	$ 1.3	$ (0.2)	$ 2.9

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Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2012

Components of the Estimated Net Pension and Postretirement Benefits (Income) Expense

The components of net pension and postretirement benefits (income) expense for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June 30,
	2012			2011			2012			2011
Pension (income) expense
Service cost	$	1.6		$	21.5		$	3.5		$	42.8
Interest cost		47.4			48.9			94.8			97.0
Expected return on assets		(65.8	)		(67.3	)		(131.6	)		(134.4	)
Amortization, net		6.8			12.8			13.9			25.0
Net pension (income) expense	$	(10.0	)	$	15.9		$	(19.4	)	$	30.4
Postretirement benefits (income) expense
Service cost	$	1.6		$	2.3		$	3.3		$	4.6
Interest cost		4.6			6.2			9.2			12.4
Expected return on assets		(3.4	)		(3.8	)		(6.9	)		(7.6	)
Amortization, net		(4.9	)		(1.3	)		(9.9	)		(2.5	)
Net postretirement benefits (income) expense	$	(2.1	)	$	3.4		$	(4.3	)	$	6.9

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Black-Scholes-Merton Option Pricing Model

The fair market value of the stock options was determined using the following weighted average assumptions:

	2012			2011
Expected volatility		39.71	%		36.69	%
Risk-free interest rate		1.18	%		2.54	%
Expected life (years)		6.25			6.25
Expected dividend yield		5.06	%		4.57	%

Summary Of Stock Option Activity

The following table is a summary of the Company’s 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, 2011		3,995		$	20.75		5.9	$	9.5
Granted		1,221			13.22		9.7
Exercised		(197	)		7.09
Cancelled/forfeited/expired		(268	)		29.49
Outstanding at June 30, 2012		4,751		$	18.89		6.7	$	5.1
Exercisable at June 30, 2012		713		$	7.09		6.7	$	3.3

Nonvested Performance Share Unit Awards

Nonvested restricted stock unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		4,989		$	13.94
Granted		1,048			10.53
Vested		(2,617	)		15.25
Forfeited		(84	)		12.91
Nonvested at June 30, 2012		3,336		$	11.86

Nonvested Performance Share Unit Awards

Nonvested performance share unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		235	$	15.54
Granted		233		10.12
Nonvested at June 30, 2012		468	$	12.84

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Acquisitions

6 Months Ended

Jun. 30, 2012

Acquisitions

2. Acquisitions

For the three and six months ended June 30, 2012, the Company recorded $0.5 million and $0.8 million of acquisition-related expenses, respectively, associated with acquisitions contemplated, within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

2011 Acquisitions

On November 21, 2011, the Company acquired StratusGroup, Inc. (“Stratus”), a full service manufacturer of custom pressure sensitive label and paperboard packaging products for health and beauty, food, beverage and other segments. Stratus’ decorative labeling and paperboard resources complement the Company’s prime label, corrugated and other global packaging capabilities. The purchase price for Stratus was $29.0 million, net of cash acquired of $0.1 million. Stratus’ operations are included in the U.S. Print and Related Services segment.

On September 6, 2011, the Company acquired Genesis Packaging & Design Inc. (“Genesis”), a full service provider of custom packaging, including designing, printing, die cutting, finishing and assembling. The addition of Genesis complements the Company’s existing packaging and merchandising business with a centrally located facility and enhanced ability to service customers in a range of industries. The purchase price for Genesis was $10.1 million. Genesis’ operations are included in the U.S. Print and Related Services segment.

On August 16, 2011, the Company acquired LibreDigital, Inc. (“LibreDigital”), a leading provider of digital content distribution, e-reading software, content conversion, data analytics and business intelligence services. LibreDigital’s capabilities enable the Company to offer a broader selection of digital content creation and delivery services to publishing, retail, e-reader provider and other customers. The purchase price for LibreDigital was $19.5 million, net of cash acquired of $0.1 million. LibreDigital’s operations are included in the U.S. Print and Related Services segment.

On August 15, 2011, the Company acquired Sequence Personal LLC (“Sequence”), a provider of proprietary software that enables readers to select relevant content to be digitally produced as specialized publications. Sequence’s software offers publishers and other customers a practical way to increase revenues by allowing advertisers to select unique ad selection criteria for targeted delivery. The purchase price for Sequence, which includes the Company’s estimate of contingent consideration, was $14.6 million, net of cash acquired of $0.1 million. A former equity holder of Sequence may receive contingent consideration in the form of cash payments of up to $14.0 million, subject to Sequence achieving certain milestones related to volume or revenue in 2013 and 2014. As of the acquisition date, the Company estimated the fair value of the contingent consideration to be $6.8 million using a probability weighting of the potential payouts. The Company has subsequently revised the estimated fair value of the contingent consideration as the result of a decrease in the likelihood of achieving the 2013 and 2014 milestones. The adjustment to the fair value of the contingent consideration was recognized in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. Subsequent changes in the estimated contingent consideration will also be recognized in the Condensed Consolidated Statement of Operations. Sequence’s operations are included in the U.S. Print and Related Services segment.

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. 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. 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 was reflected in investment and other (income) expense in the Consolidated Statements of Operations for the year ended December 31, 2011. 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. The inputs used to determine the fair value of the previously held equity investment were determined to be Level 3 under the fair value hierarchy. 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 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 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. As a result, the additions of these businesses have improved the Company’s ability to serve customers and reduced redundant management, support and manufacturing costs.

For the three and six months ended June 30, 2011, the Company recorded $0.9 million and $1.3 million of acquisition-related expenses, respectively, associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

The Stratus, Genesis, LibreDigital, Sequence, Helium and Journalism Online 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 and contingent consideration over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The tax deductible goodwill related to these acquisitions was $46.9 million. Based on the valuations, the final purchase price allocations for these acquisitions were as follows:

Accounts receivable	$	6.0
Inventories		2.3
Prepaid expenses and other current assets		0.4
Property, plant and equipment and other long-term assets		16.8
Amortizable intangible assets		16.2
Goodwill		117.8
Accounts payable and accrued liabilities		(8.2	)
Other noncurrent liabilities		(2.9	)
Deferred taxes-net		14.2
Total purchase price-net of cash acquired		162.6
Less: fair value of Company’s previously held investments in Helium		13.9
Less: fair value of contingent consideration		6.8
Net cash paid	$	141.9

The fair values of property, plant and equipment, amortizable intangible assets, contingent consideration and goodwill associated with the acquisitions of Stratus, Genesis, LibreDigital, Sequence, Helium and Journalism Online were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions. Customer relationships intangible asset values were estimated based on expected future cash flows discounted using an estimated weighted average cost of capital. Estimates of future customer attrition rates were considered in estimating the expected future cash flows from customer relationships. Tradename intangible asset values were 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, 2012 and 2011 presents the combined results of operations of the Company and the 2011 acquisitions described above, as if the acquisitions had occurred as of January 1, 2011.

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 periods 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,
	2012		2011		2012		2011
Net sales	$	2,528.6	$	2,635.2	$	5,053.5	$	5,230.0
Net earnings attributable to RR Donnelley common shareholders		88.8		1.6		126.5		42.0
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.01	$	0.70	$	0.21
Diluted	$	0.49	$	0.01	$	0.70	$	0.21

The unaudited pro forma financial information for the three months ended June 30, 2012 and 2011 includes $22.1 million and $29.3 million, respectively, for the amortization of purchased intangibles. Amortization of purchased intangibles for the six months ended June 30, 2012 and 2011 was $46.4 million and $58.2 million, respectively. The unaudited pro forma financial information includes restructuring and impairment charges from operations of $34.0 million and $75.7 million for the three months ended June 30, 2012 and 2011, respectively. Restructuring and impairment charges for the six months ended June 30, 2012 and 2011 were $84.0 million and $126.9 million, respectively. Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
Depreciation and amortization of purchased assets, pre-tax	$	—		$	(0.8	)	$	—		$	(1.7	)
Acquisition-related expenses, pre-tax		0.1			0.2			0.1			0.5
Restructuring and impairment charges, pre-tax		—			—			—			(0.4	)
Inventory fair value adjustment, pre-tax		—			—			0.3			(0.3	)
Other pro forma adjustments, pre-tax		—			(10.3	)		0.1			(1.1	)
Income taxes		(0.1	)		1.3			(0.2	)		2.9

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Equity (Tables)

6 Months Ended

Jun. 30, 2012

Summary Of The Company's Equity Activity

The following table summarizes the Company’s equity activity for the six months ended June 30, 2012:

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			Total Equity
Balance at December 31, 2011	$	1,042.7		$	19.5		$	1,062.2
Net earnings		126.2			0.7			126.9
Other comprehensive loss		(17.9	)		—			(17.9	)
Share-based compensation		14.8			—			14.8
Issuance of share-based awards, net of withholdings		(11.8	)		—			(11.8	)
Cash dividends paid		(93.3	)		—			(93.3	)
Distributions to noncontrolling interests		—			(1.2	)		(1.2	)
Balance at June 30, 2012	$	1,060.7		$	19.0		$	1,079.7

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

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			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
Issuance of share-based awards, net of withholdings		(6.4	)		—			(6.4	)
Acquisition of common stock		(500.0	)		—			(500.0	)
Cash dividends paid		(107.7	)		—			(107.7	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

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Basis of Presentation (Narrative) (Detail) (Reversal of Over-Accrual for Rebates, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Reversal of Over-Accrual for Rebates
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Immaterial error correction, impact on accounts receivable and net sales	$ 19.8

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Restructuring And Impairment Charges (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012 Person	Jun. 30, 2011 Person	Jun. 30, 2012 Person	Jun. 30, 2011 Person
Restructuring Cost and Reserve [Line Items]
Employee termination costs	$ 13.8	$ 29.2	$ 50.6	$ 54.0
Number of employees used to determine employee termination costs			1,820	1,859
Number of employees who were terminated as of date	1,578	1,859	1,578	1,859
Impairment charges			18.0	32.4
Current restructuring reserve (included in accrued liabilities)	55.1		55.1
Noncurrent restructuring reserve (included in noncurrent liabilities)	44.5		44.5
Lease Terminations and Other
Restructuring Cost and Reserve [Line Items]
Other restructuring charges	11.9	22.2	15.8	40.1
Machinery and Equipment
Restructuring Cost and Reserve [Line Items]
Impairment charges	8.3	24.3	17.6	32.4
Multi-employer Pension Withdrawal Obligations
Restructuring Cost and Reserve [Line Items]
Other restructuring charges				$ 15.8

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Derivatives (Total Fair Value Of Forward Contracts And Fair Value Hedges) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets
Derivatives, Fair Value [Line Items]
Derivatives assets	$ 0.6	$ 0.3
Not Designated as Hedging Instrument | Accrued Liabilities
Derivatives, Fair Value [Line Items]
Derivatives liabilities	0.1	0.3
Designated as Hedging Instrument | Other Noncurrent Assets
Derivatives, Fair Value [Line Items]
Derivatives assets	$ 12.6	$ 19.9

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 369.0	$ 449.7
Receivables, less allowances for doubtful accounts of $50.0 in 2012 (2011-$62.6)	1,944.9	1,844.2
Income taxes receivable	25.9	32.4
Inventories (Note 3)	505.0	510.9
Prepaid expenses and other current assets	136.4	131.4
Total current assets	2,981.2	2,968.6
Property, plant and equipment-net (Note 4)	1,718.9	1,854.6
Goodwill (Note 5)	2,218.4	2,222.1
Other intangible assets-net (Note 5)	542.5	590.3
Other noncurrent assets	638.8	646.1
Total assets	8,099.8	8,281.7
LIABILITIES
Accounts payable	946.9	1,063.3
Accrued liabilities	765.2	817.0
Short-term and current portion of long-term debt (Note 14)	343.0	243.7
Total current liabilities	2,055.1	2,124.0
Long-term debt (Note 14)	3,418.4	3,416.8
Pension liabilities	992.5	1,076.3
Postretirement benefits	227.5	227.3
Other noncurrent liabilities	326.6	375.1
Total liabilities	7,020.1	7,219.5
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 2012 and 2011	303.7	303.7
Additional paid-in-capital	2,828.1	2,888.7
Retained earnings	375.3	342.4
Accumulated other comprehensive loss	(881.2)	(863.3)
Treasury stock, at cost, 62.6 shares in 2012 (2011-64.5 shares)	(1,565.2)	(1,628.8)
Total RR Donnelley shareholders' equity	1,060.7	1,042.7
Noncontrolling interests	19.0	19.5
Total equity	1,079.7	1,062.2
Total liabilities and equity	$ 8,099.8	$ 8,281.7

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Inventories (Components Of The Company's Inventories) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Inventory [Line Items]
Raw materials and manufacturing supplies	$ 232.9	$ 218.0
Work in process	154.9	171.2
Finished goods	213.6	218.1
LIFO reserve	(96.4)	(96.4)
Total	$ 505.0	$ 510.9

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
OPERATING ACTIVITIES
Net earnings	$ 126.9	$ 46.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment charges	18.0	32.4
Depreciation and Amortization	245.9	280.9
Provision for doubtful accounts receivable	2.4	7.5
Share-based compensation	14.8	16.4
Deferred taxes	11.5	(28.6)
Changes in uncertain tax positions	(23.9)	(6.1)
(Gain) loss on sale of investments and other assets-net	3.9	(12.8)
Net pension and postretirement benefits (income) expense	(23.7)	37.3
Loss on debt extinguishment	12.1	68.6
Other	18.6	15.1
Changes in operating assets and liabilities-net of acquisitions:
Accounts receivable-net	(110.0)	(75.3)
Inventories	3.7	(13.2)
Prepaid expenses and other current assets	(2.3)	(14.8)
Accounts payable	(112.5)	(30.4)
Income taxes payable and receivable	(5.7)	(22.8)
Accrued liabilities and other	(113.2)	(97.7)
Pension and postretirement benefits contributions	(56.6)	(35.2)
Net cash provided by operating activities	9.9	168.1
INVESTING ACTIVITIES
Capital expenditures	(93.7)	(128.2)
Acquisitions of businesses, net of cash acquired	0.5	(75.4)
Proceeds from return of capital and sale of investments and other assets	5.9	2.1
Purchases of other investments	(2.5)	(7.0)
Transfers from restricted cash-net	(0.1)	0.1
Net cash used in investing activities	(89.9)	(208.4)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	450.0	600.0
Net change in short-term debt	(0.6)	4.6
Payments of current maturities and long-term debt	(621.7)	(481.6)
Net proceeds of credit facility borrowings	260.0	355.0
Proceeds from termination of interest rate swaps	11.0
Debt issuance costs	(7.5)	(9.6)
Issuance of common stock	4.9	7.1
Acquisition of common stock		(500.0)
Dividends paid	(93.3)	(107.7)
Distributions to noncontrolling interests	(1.2)	(2.2)
Net cash provided by (used in) financing activities	1.6	(134.4)
Effect of exchange rate on cash flows and cash equivalents	(2.3)	18.6
Net decrease in cash and cash equivalents	(80.7)	(156.1)
Cash and cash equivalents at beginning of period	449.7	519.1
Cash and cash equivalents at end of period	$ 369.0	$ 363.0

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Share-Based Compensation (Summary Of Stock Option Activity) (Detail) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Shares Under Option
Outstanding at December 31, 2011	3,995,000
Granted	1,221,000	200,000
Exercised	(197,000)
Cancelled/forfeited/expired	(268,000)
Outstanding at June 30, 2012	4,751,000		4,751,000
Exercisable at June 30, 2012	713,000		713,000
Weighted Average Exercise Price
Outstanding at December 31, 2011	$ 20.75
Granted	$ 13.22
Exercised	$ 7.09
Cancelled/forfeited/expired	$ 29.49
Outstanding at June 30, 2012	$ 18.89		$ 18.89
Exercisable at June 30, 2012	$ 7.09		$ 7.09
Weighted Average Remaining Contractual Term (years)
Outstanding at December 31, 2011	6 years 8 months 12 days		5 years 10 months 24 days
Granted	9 years 8 months 12 days
Outstanding at June 30, 2012	6 years 8 months 12 days		5 years 10 months 24 days
Exercisable at June 30, 2012	6 years 8 months 12 days
Aggregate Intrinsic Value
Outstanding at December 31, 2011	$ 9,500
Outstanding at June 30, 2012	5,100		5,100
Exercisable at June 30, 2012	$ 3,300		$ 3,300

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

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, 2012
U.S. Print and Related Services	$	1,856.4	$	(10.4	)	$	1,846.0	$	165.7		$	83.3	$	27.3
International		707.5		(24.9	)		682.6		42.0			27.1		6.9
Total operating segments		2,563.9		(35.3	)		2,528.6		207.7			110.4		34.2
Corporate		—		—			—		(43.8	)		10.5		14.2
Total operations	$	2,563.9	$	(35.3	)	$	2,528.6	$	163.9		$	120.9	$	48.4

	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			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2012
U.S. Print and Related Services	$	3,747.1	$	(19.7	)	$	3,727.4	$	304.9		$	5,586.9	$	170.9	$	54.4
International		1,371.5		(45.4	)		1,326.1		72.6			2,191.5		54.6		18.0
Total operating segments		5,118.6		(65.1	)		5,053.5		377.5			7,778.4		225.5		72.4
Corporate		—		—			—		(92.2	)		321.4		20.4		21.3
Total operations	$	5,118.6	$	(65.1	)	$	5,053.5	$	285.3		$	8,099.8	$	245.9	$	93.7

	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

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Earnings per Share Attributable to RR Donnelley Common Shareholders (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Earnings Per Share [Line Items]
Cash payment for share repurchase under ASR program	$ 500.0

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Fair Value Measurement

6 Months Ended

Jun. 30, 2012

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 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, 2012 and December 31, 2011.

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 during the three and six months ended June 30, 2012 and 2011 are summarized below:

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012				As of June 30, 2012
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	1.6	$	4.9	$	7.2	$	9.1	$	8.7
Long-lived assets held for sale or disposal		7.6		9.2		11.4		10.7		8.1
Total	$	9.2	$	14.1	$	18.6	$	19.8	$	16.8

	Three Months Ended June 30, 2011				Six Months Ended June 30, 2011				As of June 30, 2011
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	12.1	$	8.2	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal		12.4		—		18.2		1.3		1.3
Total	$	24.5	$	8.2	$	32.3	$	69.8	$	67.1

During the three and six months ended June 30, 2012, impairment charges of $1.6 million and $7.2 million, respectively, were recognized on long-lived assets held and used. These assets had carrying amounts before the impairment charges of $6.5 million and $16.3 million during the three months and six months ended June 30, 2012, respectively, and were written down to fair values of $4.9 million and $9.1 million during the three and six months ended June 30, 2012, respectively.

During the three and six months ended June 30, 2011, impairment charges of $12.1 million and $14.1 million, respectively, were recognized on long-lived assets held and used. These assets had carrying amounts before the impairment charges of $20.3 million and $82.6 million during the three months and six months ended June 30, 2011, respectively, and were written down to fair values of $8.2 million and $68.5 million during the three and six months ended June 30, 2011, respectively.

During the three and six months ended June 30, 2012, impairment charges of $7.6 million and $11.4 million, respectively, were recognized on long-lived assets held for sale or disposal. These assets had carrying amounts before the impairment charges of $16.4 million and $21.7 million during the three and six months ended June 30, 2012, respectively, and were written down to fair values of $9.2 million and $10.7 million during the three and six months ended June 30, 2012, respectively. These fair values were reduced by estimated costs to sell of $0.4 million for the three and six months ended June 30, 2012.

During the three and six months ended June 30, 2011, impairment charges of $12.4 million and $18.2 million, respectively, were recognized on long-lived assets held for sale or disposal. These assets had carrying amounts before the impairment charges of $12.4 million and $19.5 million during the three and six months ended June 30, 2011, respectively, and were written down to fair values of zero and $1.3 million during the three and six months ended June 30, 2011, respectively.

The fair values of the long-lived assets held and used and long-lived assets held for sale or disposal were determined using Level 3 inputs and 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 the current marketplace conditions. Unobservable inputs obtained from third parties are adjusted as necessary for the condition and attributes of the specific asset. The Company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs.

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

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Debt (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Debt

The Company’s debt consists of the following:

	June 30, 2012			December 31, 2011
Borrowings under the Credit Agreement	$	325.0		$	65.0
5.625% senior notes due January 15, 2012		—			158.6
4.95% senior notes due April 1, 2014		258.1			599.5
5.50% senior notes due May 15, 2015		299.8			399.8
8.60% senior notes due August 15, 2016		347.1			346.8
6.125% senior notes due January 15, 2017		523.1			522.9
7.25% senior notes due May 15, 2018		600.0			600.0
11.25% debentures due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		450.0			—
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		199.4			199.3
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		36.8			46.5
Total debt		3,761.4			3,660.5
Less: current portion		(343.0	)		(243.7	)
Long-term debt	$	3,418.4		$	3,416.8

(a) On May 17, 2011 and June 14, 2012, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75% and 12.0%, respectively, as a result of downgrades in the ratings of the notes by the rating agencies.

(b) Includes miscellaneous debt obligations, fair value adjustments to the Company’s 4.95% senior notes due April 1, 2014 and 8.25% senior notes due March 15, 2019 related to the Company’s fair value hedges and capital leases.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

New Accounting Pronouncements

18. New Accounting Pronouncements

In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2012-02 “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. ASU 2012-02 will be effective for the Company in the first quarter of 2013; however, as permitted, the Company will early adopt ASU 2012-02 in the third quarter of 2012. ASU 2012-02 is expected to reduce the complexity of testing indefinite-lived intangible assets for impairment, but otherwise will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2011, the FASB issued Accounting Standards Update No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), which requires disclosures of gross and net information about financial and derivative instruments eligible for offset in the statement of financial position or subject to a master netting agreement. ASU 2011-11 will be effective for the Company in the first quarter of 2013 and may require additional disclosures, but otherwise is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In June 2011, the 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 the statement of changes 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. In December 2011, the FASB issued Accounting Standards Updated No. 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), which defers the requirement to present reclassification adjustments for each component of other comprehensive income on the face of the financial statements. ASU 2011-05 and 2011-12 were effective and adopted by the Company in the first quarter of 2012 and impacted the Company’s financial statement presentation, but otherwise did not impact the Company’s condensed consolidated financial position, 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 was effective and adopted by the Company in the first quarter of 2012 and impacted the Company’s disclosures, but otherwise did not have a material impact on the Company’s condensed consolidated financial position, results of operations or cash flows.

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Commitments and Contingencies (Narrative) (Detail)	6 Months Ended
	Jun. 30, 2012 Facility
Commitment And Contingencies [Line Items]
Number of sites cited as potentially responsible party	9
Previously Owned Facilities
Commitment And Contingencies [Line Items]
Number of sites with potential remediation obligations	8
Currently Owned Facilities
Commitment And Contingencies [Line Items]
Number of sites with potential remediation obligations	3

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Basis of Presentation

6 Months Ended

Jun. 30, 2012

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 (see paragraph below for discussion of an other than normal adjustment) 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, 2011 filed with the SEC on February 22, 2012. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2012. 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.

During the first quarter of 2012, the Company identified and recognized $19.8 million to correct an over-accrual for rebates owed to certain office products customers, which understated accounts receivable and net sales during the years 2008 through 2011. Following qualitative and quantitative review, the Company concluded that the over-accrual was not material to any prior period and is not expected to be material to the full year 2012 or to the trend of annual operating results.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Receivables, allowance for doubtful accounts	$ 50.0	$ 62.6
Preferred stock, par value	$ 1.00	$ 1.00
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	62,600,000	64,500,000

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Comprehensive Income

6 Months Ended

Jun. 30, 2012

Comprehensive Income

11. Comprehensive Income

Income tax expense allocated to each component of other comprehensive income (loss) for the three and six months ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30, 2012								Six Months Ended June 30, 2012
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(61.6	)	$	—	$	(61.6	)	$	(19.8	)	$	—	$	(19.8	)
Adjustment for net periodic pension and postretirement benefit cost		2.0			1.2		0.8			3.6			2.1		1.5
Change in fair value of derivatives		0.1			—		0.1			0.6			0.2		0.4
Other comprehensive loss	$	(59.5	)	$	1.2	$	(60.7	)	$	(15.6	)	$	2.3	$	(17.9	)

	Three Months Ended June 30, 2011						Six Months Ended June 30, 2011
	Before Tax Amount		Income Tax Expense		Net of Tax Amount		Before Tax Amount		Income Tax Expense		Net of Tax Amount
Translation adjustments	$	26.1	$	—	$	26.1	$	52.2	$	—	$	52.2
Adjustment for net periodic pension and postretirement benefit cost		91.4		35.9		55.5		102.1		39.9		62.2
Change in fair value of derivatives		0.7		0.3		0.4		0.8		0.3		0.5
Other comprehensive income	$	118.2	$	36.2	$	82.0	$	155.1	$	40.2	$	114.9

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Document and Entity Information In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 27, 2012
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
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		180.3

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Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

12. Segment Information

The Company operates primarily in the printing industry, with related products and service offerings designed to offer customers complete solutions for communicating their messages to target audiences. The Company’s reportable segments reflect the management reporting structure of the organization and the manner in which the chief operating decision-maker regularly assesses information for decision-making purposes, including the allocation of resources. The Company’s segments and their 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 logistics, premedia, print management and other print related 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, manuals, statement printing, premedia and logistics services. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management services through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia.

Corporate

Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans are included in Corporate and not allocated to operating segments. Corporate also 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, 2012
U.S. Print and Related Services	$	1,856.4	$	(10.4	)	$	1,846.0	$	165.7		$	83.3	$	27.3
International		707.5		(24.9	)		682.6		42.0			27.1		6.9
Total operating segments		2,563.9		(35.3	)		2,528.6		207.7			110.4		34.2
Corporate		—		—			—		(43.8	)		10.5		14.2
Total operations	$	2,563.9	$	(35.3	)	$	2,528.6	$	163.9		$	120.9	$	48.4

	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			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Six months ended June 30, 2012
U.S. Print and Related Services	$	3,747.1	$	(19.7	)	$	3,727.4	$	304.9		$	5,586.9	$	170.9	$	54.4
International		1,371.5		(45.4	)		1,326.1		72.6			2,191.5		54.6		18.0
Total operating segments		5,118.6		(65.1	)		5,053.5		377.5			7,778.4		225.5		72.4
Corporate		—		—			—		(92.2	)		321.4		20.4		21.3
Total operations	$	5,118.6	$	(65.1	)	$	5,053.5	$	285.3		$	8,099.8	$	245.9	$	93.7

	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

Restructuring and impairment charges by segment for the three and six months ended June 30, 2012 and 2011 are described in Note 6.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net sales
Products	$ 2,189.7	$ 2,356.9	$ 4,386.2	$ 4,623.3
Services	338.9	266.5	667.3	583.6
Total net sales	2,528.6	2,623.4	5,053.5	5,206.9
Products cost of sales (exclusive of depreciation and amortization)	1,689.6	1,777.2	3,392.5	3,504.0
Services cost of sales (exclusive of depreciation and amortization)	244.3	204.4	486.4	433.8
Selling, general and administrative expenses (exclusive of depreciation and amortization)	275.9	309.3	559.4	636.2
Restructuring and impairment charges-net (Note 6)	34.0	75.7	84.0	126.5
Depreciation and Amortization	120.9	140.7	245.9	280.9
Total operating expenses	2,364.7	2,507.3	4,768.2	4,981.4
Income from operations	163.9	116.1	285.3	225.5
Interest expense-net	63.6	61.3	124.3	119.2
Investment and other (income) expense-net	4.8	(10.0)	3.6	(9.8)
Loss on debt extinguishment		68.6	12.1	68.6
Earnings (loss) before income taxes	95.5	(3.8)	145.3	47.5
Income tax expense (benefit)	6.5	(16.3)	18.4	0.7
Net earnings	89.0	12.5	126.9	46.8
Less: Income attributable to noncontrolling interests	0.2	0.3	0.7	0.7
Net earnings attributable to RR Donnelley common shareholders	$ 88.8	$ 12.2	$ 126.2	$ 46.1
Net earnings per share attributable to RR Donnelley common shareholders (Note 10):
Basic net earnings per share	$ 0.49	$ 0.06	$ 0.70	$ 0.23
Diluted net earnings per share	$ 0.49	$ 0.06	$ 0.69	$ 0.23
Dividends declared per common share	$ 0.26	$ 0.26	$ 0.52	$ 0.52
Weighted average number of common shares outstanding:
Basic	180.7	196.7	180.1	201.9
Diluted	181.8	199.5	181.9	204.5

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Restructuring and Impairment Charges

6 Months Ended

Jun. 30, 2012

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, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2012								Three Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	10.5	$	8.6	$	7.0	$	26.1	$	22.0	$	19.5	$	23.6	$	65.1
International		3.0		0.5		—		3.5		6.7		2.6		0.5		9.8
Corporate		0.3		2.8		1.3		4.4		0.5		0.1		0.2		0.8
Total	$	13.8	$	11.9	$	8.3	$	34.0	$	29.2	$	22.2	$	24.3	$	75.7

For the six months ended June 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2012								Six Months Ended June 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	38.9	$	11.9	$	15.0	$	65.8	$	36.8	$	36.0	$	30.5	$	103.3
International		6.8		1.1		1.0		8.9		14.6		3.4		1.0		19.0
Corporate		4.9		2.8		1.6		9.3		2.6		0.7		0.9		4.2
Total	$	50.6	$	15.8	$	17.6	$	84.0	$	54.0	$	40.1	$	32.4	$	126.5

For the three and six months ended June 30, 2012, the Company recorded net restructuring charges of $13.8 million and $50.6 million, respectively, for employee termination costs for 1,820 employees, of whom 1,578 were terminated as of June 30, 2012. These terminations resulted from the reorganization of sales and administrative functions across all segments, as well as facility closures and the reorganization of certain operations. The facility closures in the six months ended June 30, 2012 included four manufacturing facilities within the U.S. Print and Related Services segment and one manufacturing facility within the International segment. Additionally, the Company incurred lease termination and other restructuring charges of $11.9 million and $15.8 million for the three and six months ended June 30, 2012, respectively. The Company also recorded $8.3 million and $17.6 million of impairment charges primarily related to machinery and equipment associated with the facility closings and other asset disposals for the three and six months ended June 30, 2012, respectively. The fair values of the machinery and equipment 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 current marketplace conditions.

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, for employee termination costs for 1,859 employees, all of whom were terminated as of June 30, 2012. These charges primarily related to the closings of certain facilities and headcount reductions due to the Bowne acquisition. In addition, these charges included the closing of three books and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. Additionally, the Company incurred multi-employer 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 completed 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 current marketplace conditions.

Restructuring Reserve

Activity impacting the Company’s restructuring reserve for the six months ended June 30, 2012 was as follows:

	December 31, 2011		Restructuring Charges		Foreign Exchange and Other			Cash Paid			June 30, 2012
Employee terminations	$	27.2	$	50.6	$	(0.5	)	$	(37.7	)	$	39.6
Multi-employer pension withdrawal obligations		27.9		0.1		—			(1.2	)		26.8
Lease terminations and other		32.6		15.7		2.4			(17.5	)		33.2
Total	$	87.7	$	66.4	$	1.9		$	(56.4	)	$	99.6

The current portion of restructuring reserves of $55.1 million at June 30, 2012 was included in accrued liabilities, while the long-term portion of $44.5 million at June 30, 2012, primarily related to multi-employer pension plan withdrawal obligations and lease termination costs, was included in other noncurrent liabilities.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June of 2013 and payments on the multi-employer pension plan withdrawal obligations are scheduled to be substantially completed by 2031.

As of June 30, 2012, the restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2026. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to these 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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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

Goodwill at June 30, 2012 and December 31, 2011 was as follows:

	U.S. Print and Related  Services			International			Total
Net book value as of December 31, 2011
Goodwill	$	3,242.6		$	1,278.4		$	4,521.0
Accumulated impairment losses		(1,209.5	)		(1,089.4	)		(2,298.9	)
Total		2,033.1			189.0			2,222.1
Foreign exchange and other adjustments		(0.6	)		(3.1	)		(3.7	)
Net book value as of June 30, 2012
Goodwill		3,242.0			1,274.1			4,516.1
Accumulated impairment losses		(1,209.5	)		(1,088.2	)		(2,297.7	)
Total	$	2,032.5		$	185.9		$	2,218.4

The components of other intangible assets at June 30, 2012 and December 31, 2011 were as follows:

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationship intangibles	$	1,161.0	$	(654.2	)	$	506.8	$	1,164.4	$	(613.6	)	$	550.8
Patents		98.3		(97.9	)		0.4		98.3		(95.8	)		2.5
Trademarks, licenses and agreements		28.7		(25.2	)		3.5		28.7		(24.4	)		4.3
Trade names		23.9		(10.2	)		13.7		23.9		(9.3	)		14.6
Total amortizable intangible assets		1,311.9		(787.5	)		524.4		1,315.3		(743.1	)		572.2
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1
Total other intangible assets	$	1,330.0	$	(787.5	)	$	542.5	$	1,333.4	$	(743.1	)	$	590.3

Amortization expense for other intangible assets was $22.1 million and $28.8 million for the three months ended June 30, 2012 and 2011, respectively, and $46.4 million and $57.3 million for the six months ended June 30, 2012 and 2011, respectively. The following table outlines the estimated annual amortization expense related to other intangible assets as of June 30, 2012:

For the year ending December 31,	Amount
2012	$	89.9
2013		86.6
2014		84.0
2015		76.4
2016		49.1
2017 and thereafter		184.8
Total	$	570.8

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

17. Income Taxes

The Company’s unrecognized tax benefits at June 30, 2012 and December 31, 2011 were as follows:

Balance at December 31, 2011	$	76.4
Additions for tax positions of the current year		2.8
Additions for tax positions of the prior year		0.5
Reductions for tax positions of prior years		(24.6	)
Settlements during the year		(1.7	)
Balance at June 30, 2012	$	53.4

During the three and six months ended June 30, 2012, the Company recognized $24.6 million of previously unrecognized tax benefits, substantially all of which was due to the resolution of certain U.S. federal uncertain tax positions. As of June 30, 2012, it is reasonably possible that the total amount of unrecognized tax benefits will decrease within twelve months by as much as $18.8 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state and international tax positions.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

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 nine active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate eight 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. 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. However, 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 effect on the Company’s consolidated 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 effect on the Company’s consolidated results of operations, financial position or cash flows.

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Equity

6 Months Ended

Jun. 30, 2012

Equity

9. Equity

The following table summarizes the Company’s equity activity for the six months ended June 30, 2012:

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			Total Equity
Balance at December 31, 2011	$	1,042.7		$	19.5		$	1,062.2
Net earnings		126.2			0.7			126.9
Other comprehensive loss		(17.9	)		—			(17.9	)
Share-based compensation		14.8			—			14.8
Issuance of share-based awards, net of withholdings		(11.8	)		—			(11.8	)
Cash dividends paid		(93.3	)		—			(93.3	)
Distributions to noncontrolling interests		—			(1.2	)		(1.2	)
Balance at June 30, 2012	$	1,060.7		$	19.0		$	1,079.7

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

	RR Donnelley Shareholders’ Equity			Noncontrolling Interest			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
Issuance of share-based awards, net of withholdings		(6.4	)		—			(6.4	)
Acquisition of common stock		(500.0	)		—			(500.0	)
Cash dividends paid		(107.7	)		—			(107.7	)
Distributions to noncontrolling interests		—			(2.7	)		(2.7	)
Balance at June 30, 2011	$	1,787.4		$	19.3		$	1,806.7

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.

As part of the share repurchase program, the Company entered into an accelerated share repurchase agreement (“ASR”) in 2011 with an investment bank under which the Company repurchased $500.0 million of its common stock, receiving an initial delivery of 19.9 million shares on May 10, 2011 and an additional 9.3 million shares on November 17, 2011.

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Share-Based Compensation (Nonvested Restricted Stock Unit Awards) (Detail) (Restricted Stock, USD $)	6 Months Ended
	Jun. 30, 2012
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at December 31, 2011	$ 13.94
Granted, Weighted-Average Grant Date Fair Value	$ 10.53
Vested, Weighted-Average Grant Date Fair Value	$ 15.25
Forfeited, Weighted-Average Grant Date Fair Value	$ 12.91
Nonvested at June 30, 2012	$ 11.86
Nonvested at December 31, 2011	4,989,000
Granted, shares	1,048,000
Vested, Shares	(2,617,000)
Forfeited, Shares	(84,000)
Nonvested at June 30, 2012	3,336,000

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Employee Benefits

6 Months Ended

Jun. 30, 2012

Employee Benefits

7. Employee Benefits

The components of net pension and postretirement benefits (income) expense for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June  30,						Six Months Ended June 30,
	2012			2011			2012			2011
Pension (income) expense
Service cost	$	1.6		$	21.5		$	3.5		$	42.8
Interest cost		47.4			48.9			94.8			97.0
Expected return on assets		(65.8	)		(67.3	)		(131.6	)		(134.4	)
Amortization, net		6.8			12.8			13.9			25.0
Net pension (income) expense	$	(10.0	)	$	15.9		$	(19.4	)	$	30.4
Postretirement benefits (income) expense
Service cost	$	1.6		$	2.3		$	3.3		$	4.6
Interest cost		4.6			6.2			9.2			12.4
Expected return on assets		(3.4	)		(3.8	)		(6.9	)		(7.6	)
Amortization, net		(4.9	)		(1.3	)		(9.9	)		(2.5	)
Net postretirement benefits (income) expense	$	(2.1	)	$	3.4		$	(4.3	)	$	6.9

On July 6, 2012, the Surface Transportation Extension Act of 2012 (the “Act”) was signed into law. The Act includes certain pension-related provisions designed to stabilize interest rates used to calculate the minimum required annual contributions for defined benefit pension plans. The Company anticipates that provisions in the Act will significantly reduce the minimum required annual contributions related to its defined benefit pension plans over the next few years though these contributions are dependent on many factors, including returns on invested assets and discount rates used to determine pension obligations. The Company expects to make contributions of approximately $165 million to its pension plans and $9 million to its postretirement plans for the full year 2012, of which $51.5 million and $5.1 million, respectively, were made during the six months ended June 30, 2012. The Company estimates that it will make cash contributions totaling approximately $76 million to its pension and postretirement benefit plans in 2013.

On November 2, 2011, the Company announced a freeze on further benefit accruals under all U.S. pension plans as of December 31, 2011. Beginning January 1, 2012, participants ceased earning additional benefits under the plans and no new participants will enter these plans. Additionally, on February 1, 2012, the Company announced a freeze on further benefit accruals under its Canadian pension plans as of March 31, 2012.

The Company recognized expense of $7.3 million and $16.1 million for matching contributions under its reinstated 401(k) match for the three and six months ended June 30, 2012, respectively.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2012

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, restricted stock units and performance share units. The total compensation expense related to all share-based compensation plans was $7.4 million and $14.8 million for the three and six months ended June 30, 2012, respectively. 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.

Stock Options

During the six months ended June 30, 2012 and 2011, the Company granted 1,221,000 and 200,000 stock options, respectively. The fair market value of each stock option award was estimated on the date of grant using the Black-Scholes-Merton option pricing model. The fair market value of the stock options was determined using the following weighted average assumptions:

	2012			2011
Expected volatility		39.71	%		36.69	%
Risk-free interest rate		1.18	%		2.54	%
Expected life (years)		6.25			6.25
Expected dividend yield		5.06	%		4.57	%

The weighted average fair market value of options granted was $2.96 and $4.39 for the six months ended June 30, 2012 and 2011, respectively.

The following table is a summary of the Company’s 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, 2011		3,995		$	20.75		5.9	$	9.5
Granted		1,221			13.22		9.7
Exercised		(197	)		7.09
Cancelled/forfeited/expired		(268	)		29.49
Outstanding at June 30, 2012		4,751		$	18.89		6.7	$	5.1
Exercisable at June 30, 2012		713		$	7.09		6.7	$	3.3

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, 2012 and December 31, 2011, 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 in-the-money options on June 30, 2012 and December 31, 2011. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. There were no options exercised during the three months ended June 30, 2012. Total intrinsic value of options exercised for the six months ended June 30, 2012 was $1.2 million. 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.

Compensation expense related to stock options for the three and six months ended June 30, 2012 was $0.7 million and $1.8 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. As of June 30, 2012, $4.5 million of total unrecognized compensation expense, related to 1.9 million stock options with a weighted average grant date fair market value of $3.04, is expected to be recognized over a weighted average period of 2.6 years.

Restricted Stock Units

Nonvested restricted stock unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		4,989		$	13.94
Granted		1,048			10.53
Vested		(2,617	)		15.25
Forfeited		(84	)		12.91
Nonvested at June 30, 2012		3,336		$	11.86

Compensation expense related to restricted stock units for the three and six months ended June 30, 2012 was $6.2 million and $12.0 million, respectively. 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. As of June 30, 2012, there was $24.6 million of unrecognized compensation expense related to approximately 3.1 million of the total nonvested restricted stock unit awards that are expected to vest over a weighted average period of 2.2 years, with a weighted average grant date fair market value of $11.79. The fair value of these awards was determined on the date of grant based on the Company’s stock price reduced by the present value of expected dividends through the vesting period.

Performance Share Units

Nonvested performance share unit awards as of June 30, 2012 and December 31, 2011, and changes during the six months ended June 30, 2012, were as follows:

	Shares (Thousands)		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		235	$	15.54
Granted		233		10.12
Nonvested at June 30, 2012		468	$	12.84

During the six months ended June 30, 2012 and 2011, 233,000 and 235,000 performance share unit awards were granted to certain executive officers, payable upon the achievement of certain established performance targets. The performance periods for the shares awarded during the six months ended June 30, 2012 and 2011 are January 1, 2012 through December 31, 2014 and January 1, 2011 through December 31, 2013, respectively. Distributions under these awards are payable at the end of the performance period in common stock or cash, at the Company’s discretion. The total potential payouts for awards granted during the six months ended June 30, 2012 and 2011 range from 116,500 to 233,000 shares and 117,500 to 235,000 shares, respectively, should certain performance targets be achieved. The fair value of these awards was determined on the date of grant based on the Company’s stock price reduced by the present value of expected dividends through the vesting period. 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 for the awards granted in 2012 and 2011 is currently being recognized based on the maximum estimated payout of 233,000 and 235,000 shares, for each respective period. Compensation expense related to performance share unit awards for the three and six months ended June 30, 2012 was $0.5 million and $1.0 million, respectively. 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, 2012, there was $3.8 million of unrecognized compensation expense related to performance share unit awards, which is expected to be recognized over a weighted average period of 2.0 years.

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Earnings per Share Attributable to RR Donnelley Common Shareholders

6 Months Ended

Jun. 30, 2012

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,
	2012		2011		2012		2011
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	88.8	$	12.2	$	126.2	$	46.1
Denominator:
Weighted average number of common shares outstanding		180.7		196.7		180.1		201.9
Dilutive options and awards (a)		1.1		2.8		1.8		2.6
Diluted weighted average number of common shares outstanding		181.8		199.5		181.9		204.5
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.49	$	0.06	$	0.70	$	0.23
Diluted	$	0.49	$	0.06	$	0.69	$	0.23
Dividends declared per common share	$	0.26	$	0.26	$	0.52	$	0.52

(a) Dilutive options and awards take into consideration the dilution of certain unvested restricted stock awards, performance share unit awards and unexercised stock option awards. For the three and six months ended June 30, 2012, restricted stock units of 2.5 million and 2.3 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2012, performance share units of 0.5 million were excluded as the performance targets upon which issuance of these shares is contingent had not yet been achieved as of the end of the current period. For the three and six months ended June 30, 2012, options to purchase 4.5 million shares and 4.2 million shares, respectively, were anti-dilutive because the option exercise price exceeded the fair value of the stock.

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 and options to purchase 3.5 million shares were anti-dilutive for both periods as the option exercise price exceeded the fair value of the stock.

As discussed in Note 9, during 2011 the Company entered into an ASR with an investment bank under which the Company repurchased $500.0 million of its common stock. Both the initial and final delivery of shares resulted in a reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted net earnings per share.

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Earnings Per Share Attributable To RR Donnelley Common Shareholders (Earnings Per Share Attributable to Parent) (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011		Jun. 30, 2012		Jun. 30, 2011
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$ 88.8		$ 12.2		$ 126.2		$ 46.1
Denominator:
Weighted average number of common shares outstanding	180.7		196.7		180.1		201.9
Dilutive options and awards	1.1	[1]	2.8	[1]	1.8	[1]	2.6	[1]
Diluted weighted average number of common shares outstanding	181.8		199.5		181.9		204.5
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$ 0.49		$ 0.06		$ 0.70		$ 0.23
Diluted	$ 0.49		$ 0.06		$ 0.69		$ 0.23
Dividends declared per common share	$ 0.26		$ 0.26		$ 0.52		$ 0.52
Restricted Stock
Net earnings per share attributable to RR Donnelley common shareholders:
Antidilutive securities excluded from computation of earnings per share	2.5		2.8		2.3		3.0
Performance Stock Units
Net earnings per share attributable to RR Donnelley common shareholders:
Antidilutive securities excluded from computation of earnings per share	0.5				0.5
Stock Options
Net earnings per share attributable to RR Donnelley common shareholders:
Antidilutive securities excluded from computation of earnings per share	4.5		3.5		4.2		3.5

[1] Dilutive options and awards take into consideration the dilution of certain unvested restricted stock awards, performance share unit awards and unexercised stock option awards. For the three and six months ended June 30, 2012, restricted stock units of 2.5 million and 2.3 million, respectively, were excluded as their effect would be anti-dilutive. For the three and six months ended June 30, 2012, performance share units of 0.5 million were excluded as the performance targets upon which issuance of these shares is contingent had not yet been achieved as of the end of the current period. For the three and six months ended June 30, 2012, options to purchase 4.5 million shares and 4.2 million shares, respectively, were anti-dilutive because the option exercise price exceeded the fair value of the stock. 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 and options to purchase 3.5 million shares were anti-dilutive for both periods as the option exercise price exceeded the fair value of the stock.

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Comprehensive Income (Income Tax Expense Allocated To Each Component Of Other Comprehensive Income (Loss)) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Other Comprehensive Income [Line Items]
Translation adjustments, Before-Tax Amount	$ (61.6)	$ 26.1	$ (19.8)	$ 52.2
Adjustment for net periodic pension post retirement benefit cost, Before-Tax Amount	2.0	91.4	3.6	102.1
Change in fair value of derivatives, Before-Tax Amount	0.1	0.7	0.6	0.8
Other comprehensive income (loss), Before-Tax Amount	(59.5)	118.2	(15.6)	155.1
Translation adjustments, Income Tax Expense
Adjustment for net periodic pension and postretirement benefit cost, Income Tax Expense	1.2	35.9	2.1	39.9
Change in fair value of derivatives, Income Tax Expense		0.3	0.2	0.3
Other comprehensive income (loss), Income Tax Expense	1.2	36.2	2.3	40.2
Translation adjustments, Net-of-Tax Amount	(61.6)	26.1	(19.8)	52.2
Adjustment for net periodic pension and postretirement benefit cost, Net-of-Tax Amount	0.8	55.5	1.5	62.2
Change in fair value of derivatives, Net-of-Tax Amount	0.1	0.4	0.4	0.5
Other comprehensive income (loss)	$ (60.7)	$ 82.0	$ (17.9)	$ 114.9

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Equity (Narrative) (Detail) (USD $) Share data in Millions, unless otherwise specified	6 Months Ended		1 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Nov. 30, 2011 Accelerated Share Repurchase Program	May 31, 2011 Accelerated Share Repurchase Program	Dec. 31, 2011 Accelerated Share Repurchase Program
Equity [Line Items]
Stock repurchase program, authorized amount	$ 1,000,000,000
Stock repurchase program, period in force	1 year 6 months 29 days
Common stock repurchase program, approval date	May 03, 2011
Stock repurchase program, authorized amount		$ 500,000,000			$ 500,000,000
Treasury stock, shares acquired			9.3	19.9

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Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Comprehensive Income

Income tax expense allocated to each component of other comprehensive income (loss) for the three and six months ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30, 2012								Six Months Ended June 30, 2012
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(61.6	)	$	—	$	(61.6	)	$	(19.8	)	$	—	$	(19.8	)
Adjustment for net periodic pension and postretirement benefit cost		2.0			1.2		0.8			3.6			2.1		1.5
Change in fair value of derivatives		0.1			—		0.1			0.6			0.2		0.4
Other comprehensive loss	$	(59.5	)	$	1.2	$	(60.7	)	$	(15.6	)	$	2.3	$	(17.9	)

	Three Months Ended June 30, 2011						Six Months Ended June 30, 2011
	Before Tax Amount		Income Tax Expense		Net of Tax Amount		Before Tax Amount		Income Tax Expense		Net of Tax Amount
Translation adjustments	$	26.1	$	—	$	26.1	$	52.2	$	—	$	52.2
Adjustment for net periodic pension and postretirement benefit cost		91.4		35.9		55.5		102.1		39.9		62.2
Change in fair value of derivatives		0.7		0.3		0.4		0.8		0.3		0.5
Other comprehensive income	$	118.2	$	36.2	$	82.0	$	155.1	$	40.2	$	114.9

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Goodwill And Other Intangible Assets (Estimated Annual Amortization Expense Related To Intangible Assets) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012
Goodwill And Other Intangible Assets
2012	$ 89.9
2013	86.6
2014	84.0
2015	76.4
2016	49.1
2017 and thereafter	184.8
Total Estimated Amortization Expense	$ 570.8

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Derivatives

6 Months Ended

Jun. 30, 2012

Derivatives

15. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in 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 cash flow hedges, the effective portion of the unrealized gain or loss related to the derivatives are generally recorded in other comprehensive income (loss) until the transaction affects earnings. 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 also 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, 2012 and December 31, 2011 was $114.6 million and $78.3 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 March 13, 2012, the Company entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $400.0 million of its fixed-rate senior notes to a floating rate based on LIBOR plus a basis point spread. The interest rate swaps, with a notional value of $400.0 million, are designated as fair value hedges against changes in the value of the Company’s $450.0 million 8.25% senior notes due March 15, 2019, which are attributable to changes in the benchmark interest rate.

On April 9, 2010, the Company entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $600.0 million of its fixed-rate senior notes to a floating rate based on LIBOR plus a basis point spread. The interest rate swaps, with a notional value of $600.0 million at inception, 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. During March 2012, the Company repurchased $341.8 million of the 4.95% senior notes due April 1, 2014, and related interest rate swaps with a notional amount of $342.0 million were terminated, resulting in proceeds of $11.0 million for the fair value of the interest rate swaps.

The fair values of interest rate swaps were determined to be Level 2 under the fair value hierarchy and were developed using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates derived from observed market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. 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 manages credit risk for its derivative positions on a counterparty-by-counterparty basis, considering the net portfolio exposure with each counterparty, consistent with its risk management strategy for such transactions. 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 of 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.

At June 30, 2012 and December 31, 2011, the total fair value of the Company’s foreign exchange forward contracts, which were the only derivatives not designated as hedges, and fair value hedges, along with the accounts in the Condensed Consolidated Balance Sheets in which the fair value amounts were included were as follows:

	June 30, 2012		December 31, 2011
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	0.6	$	0.3
Accrued liabilities		0.1		0.3
Derivatives designated as fair value hedges
Other noncurrent assets	$	12.6	$	19.9

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, 2012 and 2011 were as follows:

	Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of  Operations	Three Months Ended   June 30,					Six Months Ended   June 30,
		2012		2011			2012		2011
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	3.1	$	(0.1	)	$	2.4	$	(1.7	)

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, 2012 and 2011 were as follows:

	Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Fair Value Hedges
Interest rate swaps	Investment and other (income) expense-net	$	(8.7	)	$	(7.2	)	$	(3.5	)	$	(3.3	)
Hedged items	Investment and other (income) expense-net		9.5			6.7			3.3			2.6
Total (gain) loss recognized as ineffectiveness in the condensed consolidated statements of operations	Investment and other (income) expense-net	$	0.8		$	(0.5	)	$	(0.2	)	$	(0.7	)

The Company also recognized a net reduction to interest expense of $2.0 million and $4.0 million for the three and six months ended June 30, 2012, respectively, and $2.5 million and $5.1 million for the three and six months ended June 30, 2011 related to the Company’s fair value hedges, which includes interest accruals on the derivatives and amortization of the basis in the hedged items.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Components Of The Company's Inventories

	June 30, 2012			December 31, 2011
Raw materials and manufacturing supplies	$	232.9		$	218.0
Work in process		154.9			171.2
Finished goods		213.6			218.1
LIFO reserve		(96.4	)		(96.4	)
Total	$	505.0		$	510.9

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Goodwill And Other Intangible Assets (Components Of Other Intangible Assets) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Intangible Assets Goodwill And Other Assets [Line Items]
Indefinite-lived trade names	$ 18.1	$ 18.1
Net Book Value	542.5	590.3
Total other intangible assets	1,330.0	1,333.4
Gross Carrying Amount, amortizable intangible assets	1,311.9	1,315.3
Accumulated Amortization, amortizable intangible assets	(787.5)	(743.1)
Net Book Value, amortizable intangible assets	524.4	572.2
Customer Relationships
Intangible Assets Goodwill And Other Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	1,161.0	1,164.4
Accumulated Amortization, amortizable intangible assets	(654.2)	(613.6)
Net Book Value, amortizable intangible assets	506.8	550.8
Patents
Intangible Assets Goodwill And Other Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	98.3	98.3
Accumulated Amortization, amortizable intangible assets	(97.9)	(95.8)
Net Book Value, amortizable intangible assets	0.4	2.5
Trademarks, Licenses And Agreements
Intangible Assets Goodwill And Other Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	28.7	28.7
Accumulated Amortization, amortizable intangible assets	(25.2)	(24.4)
Net Book Value, amortizable intangible assets	3.5	4.3
Trade Names
Intangible Assets Goodwill And Other Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	23.9	23.9
Accumulated Amortization, amortizable intangible assets	(10.2)	(9.3)
Net Book Value, amortizable intangible assets	$ 13.7	$ 14.6

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Acquisitions (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended			12 Months Ended			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2011 StratusGroup, Inc. U.S. Print and Related Services	Nov. 21, 2011 StratusGroup, Inc. U.S. Print and Related Services	Dec. 31, 2011 Genesis Packaging & Design Inc. U.S. Print and Related Services	Sep. 06, 2011 Genesis Packaging & Design Inc. U.S. Print and Related Services	Dec. 31, 2011 LibreDigital, Inc. U.S. Print and Related Services	Aug. 16, 2011 LibreDigital, Inc. U.S. Print and Related Services	Dec. 31, 2011 Helium, Inc. U.S. Print and Related Services	Jun. 21, 2011 Helium, Inc. U.S. Print and Related Services	Jun. 20, 2011 Helium, Inc. U.S. Print and Related Services	Dec. 31, 2011 Journalism Online, LLC U.S. Print and Related Services	Mar. 24, 2011 Journalism Online, LLC U.S. Print and Related Services	Dec. 31, 2011 Stratus, Genesis, LibreDigital, Sequence, And Journalism Online	Dec. 31, 2011 Sequence Personal Llc U.S. Print and Related Services	Aug. 15, 2011 Sequence Personal Llc U.S. Print and Related Services
Business Acquisition [Line Items]
Acquisition-related expenses	$ 0.5	$ 0.9	$ 0.8	$ 1.3
Effective date of acquisition						Nov. 21, 2011		Sep. 06, 2011		Aug. 16, 2011		Jun. 21, 2011			Mar. 24, 2011			Aug. 15, 2011
Purchase price of acquisition					162.6		29.0		10.1		19.5		57.0			19.6			14.6
Cash acquired from acquisition							0.1				0.1		0.1			0.4			0.1
Maximum entitled cash payments																			14.0
Fair value of the contingent consideration					6.8														6.8
Ownership in equity investment														23.70%
Acquisition including a Company loan													1.1
Fair value of the Company's previously held equity investment					(13.9)									12.8
Gain on equity investment												10.0
Goodwill related to acquisitions tax deductible																	46.9
Pro forma amortization of purchased intangibles	22.1	29.3	46.4	58.2
Pro forma restructuring and impairment charges from continuing operations	$ 34.0	$ 75.7	$ 84.0	$ 126.9

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net earnings	$ 89.0	$ 12.5	$ 126.9	$ 46.8
Other comprehensive income (loss), net of tax (Note 11):
Translation adjustments	(61.6)	26.1	(19.8)	52.2
Adjustment for net periodic pension and postretirement benefit cost	0.8	55.5	1.5	62.2
Change in fair value of derivatives	0.1	0.4	0.4	0.5
Other comprehensive income (loss)	(60.7)	82.0	(17.9)	114.9
Comprehensive income	28.3	94.5	109.0	161.7
Less: comprehensive income attributable to noncontrolling interests	0.1	0.5	0.7	0.9
Comprehensive income attributable to RR Donnelley common shareholders	$ 28.2	$ 94.0	$ 108.3	$ 160.8

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Property, Plant and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment

4. Property, Plant and Equipment

	June 30, 2012			December 31, 2011
Land	$	104.0		$	107.4
Buildings		1,178.2			1,173.2
Machinery and equipment		6,000.8			6,054.4
		7,283.0			7,335.0
Less: Accumulated depreciation		(5,564.1	)		(5,480.4	)
Total	$	1,718.9		$	1,854.6

During the three and six months ended June 30, 2012, depreciation expense was $92.6 million and $188.0 million, respectively. During the three and six months ended June 30, 2011, depreciation expense was $106.1 million and $212.3 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 $24.9 million and $20.2 million at June 30, 2012 and December 31, 2011, respectively. These assets were included in other current assets in the Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011 at the lower of their historical net book value and their estimated fair value, less estimated costs to sell.

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Share-Based Compensation (Black-Scholes-Merton Option Pricing Model) (Detail)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	39.71%	36.69%
Risk-free interest rate	1.18%	2.54%
Expected life (years)	6 years 3 months	6 years 3 months
Expected dividend yield	5.06%	4.57%

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Debt (Components Of Debt) (Detail) (USD $) In Millions, unless otherwise specified					6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended			6 Months Ended				6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2012		Dec. 31, 2011		Jun. 30, 2012 5.625% Senior Notes Due January 15, 2012	Dec. 31, 2011 5.625% Senior Notes Due January 15, 2012	Jun. 30, 2012 4.95% Senior Notes Due April 1, 2014	Dec. 31, 2011 4.95% Senior Notes Due April 1, 2014	Jun. 30, 2012 5.50% Senior Notes Due May 15, 2015	Dec. 31, 2011 5.50% Senior Notes Due May 15, 2015	Jun. 30, 2012 8.60% Senior Notes Due August 15, 2016	Dec. 31, 2011 8.60% Senior Notes Due August 15, 2016	Jun. 30, 2012 6.125% Senior Notes Due January 15, 2017	Dec. 31, 2011 6.125% Senior Notes Due January 15, 2017	Jun. 30, 2012 7.25% Senior Notes Due May 15, 2018	Dec. 31, 2011 7.25% Senior Notes Due May 15, 2018	Jun. 01, 2011 7.25% Senior Notes Due May 15, 2018	Jun. 30, 2012 Debenture 11 Point 25 Percent Due February 12019 [Member]		Dec. 31, 2011 Debenture 11 Point 25 Percent Due February 12019 [Member]		Jun. 30, 2012 8.25% Senior Notes Due March 15, 2019	Mar. 13, 2012 8.25% Senior Notes Due March 15, 2019	Jun. 30, 2012 7.625% Senior Notes Due June 15, 2020	Dec. 31, 2011 7.625% Senior Notes Due June 15, 2020	Jun. 30, 2012 8.875% Debentures Due April 15, 2021	Dec. 31, 2011 8.875% Debentures Due April 15, 2021	Jun. 30, 2012 6.625% Debentures Due April 15, 2029	Dec. 31, 2011 6.625% Debentures Due April 15, 2029	Jun. 30, 2012 8.820% Debentures Due April 15, 2031	Dec. 31, 2011 8.820% Debentures Due April 15, 2031	Jun. 30, 2012 Credit Agreement	Dec. 31, 2011 Credit Agreement	Jun. 14, 2012 Revised Interest Rate Stated Percentage	May 17, 2011 Revised Interest Rate Stated Percentage
Debt Disclosure [Line Items]
Borrowings under the Credit Agreement																																$ 325.0	$ 65.0
Senior notes						158.6	258.1	599.5	299.8	399.8	347.1	346.8	523.1	522.9	600.0	600.0						450.0		400.0	400.0
Interest rate					5.625%		4.95%		5.50%		8.60%		6.125%		7.25%		7.25%	11.25%				8.25%	8.25%	7.625%		8.875%		6.625%		8.82%				12.00%	11.75%
Maturity date					Jan. 15, 2012		Apr. 01, 2014		May 15, 2015		Aug. 15, 2016		Jan. 15, 2017		May 15, 2018			Feb. 01, 2019				Mar. 15, 2019		Jun. 15, 2020		Apr. 15, 2021		Apr. 15, 2029		Apr. 15, 2031
Debentures																		172.2	[1]	172.2	[1]					80.9	80.9	199.4	199.3	69.0	69.0
Other	36.8	[2]	46.5	[2]
Total debt	3,761.4		3,660.5
Less: current portion	(343.0)		(243.7)
Long-term debt	$ 3,418.4		$ 3,416.8

[1] On May 17, 2011 and June 14, 2012, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75% and 12.0%, respectively, as a result of downgrades in the ratings of the notes by the rating agencies.

[2] Includes miscellaneous debt obligations, fair value adjustments to the Company's 4.95% senior notes due April 1, 2014 and 8.25% senior notes due March 15, 2019 related to the Company's fair value hedges and capital leases.

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Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2012

Components Of Company's Property, Plant And Equipment

	June 30, 2012			December 31, 2011
Land	$	104.0		$	107.4
Buildings		1,178.2			1,173.2
Machinery and equipment		6,000.8			6,054.4
		7,283.0			7,335.0
Less: Accumulated depreciation		(5,564.1	)		(5,480.4	)
Total	$	1,718.9		$	1,854.6

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Derivatives (Schedule Of Gains (Losses) For Derivatives Designated As Fair Value Hedges) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Total (gain) loss recognized as ineffectiveness in the consolidated statements of operations	$ 0.8	$ (0.5)	$ (0.2)	$ (0.7)
Interest Rate Swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total (gain) loss recognized as ineffectiveness in the consolidated statements of operations	(8.7)	(7.2)	(3.5)	(3.3)
Hedged Items
Derivative Instruments, Gain (Loss) [Line Items]
Total (gain) loss recognized as ineffectiveness in the consolidated statements of operations	$ 9.5	$ 6.7	$ 3.3	$ 2.6

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2012

Assets Measured At Fair Value On A Nonrecurring Basis

associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the three and six months ended June 30, 2012 and 2011 are summarized below:

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012				As of June 30, 2012
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	1.6	$	4.9	$	7.2	$	9.1	$	8.7
Long-lived assets held for sale or disposal		7.6		9.2		11.4		10.7		8.1
Total	$	9.2	$	14.1	$	18.6	$	19.8	$	16.8

	Three Months Ended June 30, 2011				Six Months Ended June 30, 2011				As of June 30, 2011
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	12.1	$	8.2	$	14.1	$	68.5	$	65.8
Long-lived assets held for sale or disposal		12.4		—		18.2		1.3		1.3
Total	$	24.5	$	8.2	$	32.3	$	69.8	$	67.1

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Debt

6 Months Ended

Jun. 30, 2012

Debt

14. Debt

The Company’s debt consists of the following:

	June 30, 2012			December 31, 2011
Borrowings under the Credit Agreement	$	325.0		$	65.0
5.625% senior notes due January 15, 2012		—			158.6
4.95% senior notes due April 1, 2014		258.1			599.5
5.50% senior notes due May 15, 2015		299.8			399.8
8.60% senior notes due August 15, 2016		347.1			346.8
6.125% senior notes due January 15, 2017		523.1			522.9
7.25% senior notes due May 15, 2018		600.0			600.0
11.25% debentures due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		450.0			—
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		199.4			199.3
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		36.8			46.5
Total debt		3,761.4			3,660.5
Less: current portion		(343.0	)		(243.7	)
Long-term debt	$	3,418.4		$	3,416.8

(a) On May 17, 2011 and June 14, 2012, the interest rate on the 11.25% senior notes due February 1, 2019 was increased to 11.75% and 12.0%, respectively, as a result of downgrades in the ratings of the notes by the rating agencies.

(b) Includes miscellaneous debt obligations, fair value adjustments to the Company’s 4.95% senior notes due April 1, 2014 and 8.25% senior notes due March 15, 2019 related to the Company’s fair value hedges and capital leases.

The fair values of the senior notes and debentures, which were determined using the market approach 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 less than its book value by approximately $36.9 million and $80.1 million at June 30, 2012 and December 31, 2011, respectively.

On March 13, 2012, the Company issued $450.0 million of 8.25% senior notes due March 15, 2019. Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2012. The net proceeds from the offering and cash on hand were used to repurchase $341.8 million of the 4.95% senior notes due April 1, 2014 and $100.0 million of the 5.50% senior notes due May 15, 2015. The repurchases resulted in a pre-tax loss on debt extinguishment of $12.1 million for the six months ended June 30, 2012, consisting of a loss of $23.2 million related to the premiums paid, unamortized debt issuance costs and other expenses, partially offset by the elimination of $11.1 million of the fair value adjustment on the 4.95% senior notes.

On January 15, 2012, proceeds from borrowings under the Company’s unsecured and committed revolving credit agreement (the “Credit Agreement”) were used to pay the $158.6 million 5.625% senior notes that matured on January 15, 2012.

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 an initial $216.2 million of the 11.25% senior notes due February 1, 2019, $100.0 million of the 6.125% senior notes due January 15, 2017 and $100.0 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 Company’s Credit Agreement. On September 28, 2011, the Company repurchased an additional $11.6 million of the 11.25% senior notes due February 1, 2019. The repurchases resulted in a pre-tax loss on debt extinguishment of $69.9 million for the year ended December 31, 2011.

Interest income was $4.1 million and $7.7 million for the three and six months ended June 30, 2012, respectively. Interest income was $3.6 million and $6.2 million for the three and six months ended June 30, 2011, respectively.