Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Note 19. Segment Information

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

U.S. Print and Related Services

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

The U.S. Print and Related Services segment accounted for approximately 73% of the Company’s consolidated net sales in 2012.

International

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

The International segment accounted for approximately 27% of the Company’s consolidated net sales in 2012.

Corporate

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

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

	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Year ended December 31, 2012
U.S. Print and Related Services	$	7,553.0	$	(41.9	)	$	7,511.1	$	(276.8	)	$	4,587.7	$	329.3	$	96.9
International		2,793.0		(82.2	)		2,710.8		79.1			2,191.9		108.5		43.0
Total operating segments		10,346.0		(124.1	)		10,221.9		(197.7	)		6,779.6		437.8		139.9
Corporate(a)		—		—			—		(172.1	)		483.1		43.8		66.0
Total operations	$	10,346.0	$	(124.1	)	$	10,221.9	$	(369.8	)	$	7,262.7	$	481.6	$	205.9
Year ended December 31, 2011
U.S. Print and Related Services	$	7,887.2	$	(40.7	)	$	7,846.5	$	232.9		$	5,692.0	$	389.2	$	104.7
International		2,833.6		(69.1	)		2,764.5		35.4			2,310.1		120.2		90.6
Total operating segments		10,720.8		(109.8	)		10,611.0		268.3			8,002.1		509.4		195.3
Corporate(a)		—		—			—		(203.1	)		279.6		40.5		55.6
Total operations	$	10,720.8	$	(109.8	)	$	10,611.0	$	65.2		$	8,281.7	$	549.9	$	250.9
Year ended December 31, 2010
U.S. Print and Related Services	$	7,558.7	$	(26.5	)	$	7,532.2	$	638.9		$	6,495.7	$	391.8	$	99.2
International		2,538.6		(51.9	)		2,486.7		149.5			2,460.9		115.2		88.4
Total operating segments		10,097.3		(78.4	)		10,018.9		788.4			8,956.6		507.0		187.6
Corporate(a)		—		—			—		(232.9	)		126.6		32.2		41.8
Total operations	$	10,097.3	$	(78.4	)	$	10,018.9	$	555.5		$	9,083.2	$	539.2	$	229.4

(a) Corporate assets consist primarily of the following items at December 31, 2012: current and deferred income tax assets net of valuation allowances of $377.1 million, property, plant and equipment of $63.5 million and deferred compensation plan assets of $57.2 million, partially offset by LIFO reserves of $92.1 million; December 31, 2011: current and deferred income tax assets net of valuation allowances of $201.1 million, property, plant and equipment of $73.0 million and deferred compensation plan assets of $50.6 million, partially offset by LIFO reserves of $96.4 million; and December 31, 2010: property, plant and equipment of $64.6 million and deferred compensation plan assets of $46.5 million

Restructuring and impairment charges by segment for 2012, 2011 and 2010 are described in Note 3.