Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information

12. Segment Information

The Company operates primarily in the print and related services industry, with product and service offerings designed to offer customers complete solutions for communicating their messages to target audiences.

The Company’s segments and their product and service offerings are summarized below:

Publishing and Retail Services

The Publishing and Retail Services segment’s primary product offerings include magazines, catalogs, retail inserts, books, directories and packaging.

Variable Print

The Variable Print segment includes the Company’s U.S. short-run and transactional printing operations. This segment’s primary product offerings include commercial and digital print, direct mail, labels, statement printing, office products, forms and packaging.

Strategic Services

The Strategic Services segment includes the Company’s financial print products and related services, logistics services, digital and creative solutions and print management offerings.

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 service offerings include magazines, catalogs, retail inserts, books, directories, direct mail, packaging, forms, labels, manuals, statement printing, commercial and digital print, logistics services and digital and creative solutions. 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 offerings 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 selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefits plan expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages the Company’s cash pooling structures, which enables participating international locations to draw on the Company’s overseas cash resources to meet local liquidity needs.

Information by Segment

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.

In the second quarter of 2014, Consolidated Graphics’ operations in the Czech Republic and Japan were moved from the Variable Print segment to the Europe and Asia reporting units, respectively, within the International segment to reflect corresponding changes in the management reporting structure of the organization. All prior periods have been reclassified to conform to the current reporting structure.

Three months ended June 30, 2014	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Publishing and Retail Services	$	629.5	$	(3.6	)	$	625.9	$	27.8		$	37.2	$	10.3
Variable Print		972.0		(14.6	)		957.4		61.7			41.5		18.7
Strategic Services		719.3		(31.8	)		687.5		81.1			16.3		8.0
International		656.1		(24.4	)		631.7		24.7			24.9		18.4
Total operating segments		2,976.9		(74.4	)		2,902.5		195.3			119.9		55.4
Corporate		—		—			—		(17.1	)		2.0		1.9
Total operations	$	2,976.9	$	(74.4	)	$	2,902.5	$	178.2		$	121.9	$	57.3

Three Months Ended June 30, 2013	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
Publishing and Retail Services	$	651.4	$	(2.1	)	$	649.3	$	37.7		$	42.3	$	11.7
Variable Print		638.9		(12.7	)		626.2		38.5			26.4		13.9
Strategic Services		689.9		(29.2	)		660.7		81.1			14.9		12.6
International		658.7		(23.3	)		635.4		29.3			26.0		7.2
Total operating segments		2,638.9		(67.3	)		2,571.6		186.6			109.6		45.4
Corporate		0.1		(0.1	)		—		(13.4	)		1.4		1.0
Total operations	$	2,639.0	$	(67.4	)	$	2,571.6	$	173.2		$	111.0	$	46.4

Six months ended June 30, 2014	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Publishing and Retail Services	$	1,273.0	$	(4.4	)	$	1,268.6	$	37.7		$	1,316.4	$	74.9	$	22.2
Variable Print		1,781.0		(31.5	)		1,749.5		89.4			2,685.2		76.6		29.1
Strategic Services		1,369.9		(62.7	)		1,307.2		136.5			1,436.2		32.4		17.9
International		1,295.5		(44.5	)		1,251.0		54.9			1,972.1		49.8		30.4
Total operating segments		5,719.4		(143.1	)		5,576.3		318.5			7,409.9		233.7		99.6
Corporate		—		—			—		(44.3	)		137.0		3.7		6.7
Total operations	$	5,719.4		(143.1	)	$	5,576.3	$	274.2		$	7,546.9	$	237.4	$	106.3

Six Months Ended June 30, 2013	Total Sales		Intersegment Sales			Net Sales		Income (Loss) from Operations			Assets of Operations		Depreciation and Amortization		Capital Expenditures
Publishing and Retail Services	$	1,317.4	$	(3.7	)	$	1,313.7	$	59.5		$	1,388.3	$	85.7	$	24.2
Variable Print		1,302.7		(28.1	)		1,274.6		95.9			1,579.3		54.3		24.8
Strategic Services		1,317.6		(64.9	)		1,252.7		139.1			1,431.6		29.7		13.2
International		1,316.1		(47.0	)		1,269.1		57.2			1,886.4		51.9		18.2
Total operating segments		5,253.8		(143.7	)		5,110.1		351.7			6,285.6		221.6		80.4
Corporate		0.1		(0.1	)		—		(38.7	)		616.0		3.0		3.9
Total operations	$	5,253.9	$	(143.8	)	$	5,110.1	$	313.0		$	6,901.6	$	224.6	$	84.3

Restructuring, impairment and other charges by segment for the three and six months ended June 30, 2014 and 2013 are described in Note 6.