Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value, Valuation Techniques and Related Unobservable Inputs of Level Three

The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the years ended December 31, 2014, 2013 and 2012:

	Fair Value		Valuation Technique	Unobservable Input	Range
2014
Customer relationships	$	—	Excess earnings	Discount rate	12.0%-18.0%
				Attrition rate	6.6% - 12.0%
2013
Customer relationships	$	—	With and without method	Discount rate		16.0%
2012
Customer relationships	$	3.1	Excess earnings	Discount rate	12.5% -15.0%
				Attrition rate	2.0% - 15.9%

Pro Forma Financial Information

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

	Year ended
	December 31,
	2014		2013
Net sales	$	11,756.2	$	11,814.2
Net earnings attributable to RR Donnelley common shareholders		151.1		202.4
Net earnings per share attributable to RR Donnelley common    shareholders:
Basic	$	0.76	$	1.02
Diluted	$	0.75	$	1.01

Pro Forma Adjustments Affecting Net Earnings (Loss)

The following table outlines unaudited pro forma financial information for the years ended December 31, 2014 and 2013:

	Year ended
	December 31,
	2014		2013
Amortization of purchased intangibles	$	80.2	$	84.8
Restructuring, impairment and other charges		103.0		170.2

Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the years ended December 31, 2014 and 2013 were as follows:

	Year ended
	December 31,
	2014			2013
Depreciation and amortization of purchased assets, pre-tax	$	5.5		$	(10.2	)
Acquisition-related expenses, pre-tax		18.9			(8.9	)
Restructuring, impairment and other charges, pre-tax		32.8			(31.8	)
Inventory fair value adjustments, pre-tax		14.3			(14.3	)
Interest expense-net, pre-tax		2.6			(19.1	)
Other pro forma adjustments, pre-tax		(4.9	)		9.5
Income taxes		(19.8	)		18.8

Consolidated Graphics, Esselte and MultiCorpora

Schedule of Final Purchase Price Allocations for Acquisitions

Based on the valuations, the final purchase price allocations for these acquisitions as well as the purchase price allocation for an insignificant acquisition were as follows:

Accounts receivable	$	241.9
Inventories		89.6
Prepaid expenses and other current assets		17.5
Property, plant and equipment		336.8
Other intangible assets		205.0
Other noncurrent assets		11.9
Goodwill		300.1
Accounts payable and accrued liabilities		(221.0	)
Other noncurrent liabilities		(57.5	)
Deferred taxes-net		(96.6	)
Total purchase price-net of cash acquired		827.7
Less: debt assumed		118.4
Less: value of common stock issued		319.0
Less: gain on bargain purchase		9.5
Net cash paid	$	380.8

Fair Value, Valuation Techniques and Related Unobservable Inputs of Level Three

The following table presents the fair values, valuation techniques and related unobservable inputs for these Level 3 measurements:

	Fair Value		Valuation Technique	Unobservable Input	Range
Customer relationships	$	178.2	Excess earnings	Discount rate Attrition rate	17.0% - 21.0% 5.0% - 9.5%
Trade names		26.5	Relief-from-royalty method	Discount rate Royalty rate (after-tax)	19.0% 0.5% - 1.5%
Technology		1.1	Excess earnings	Discount rate		17.0%

Presort, Meisel, XPO and EDGAR Online Acquisitions

Schedule of Final Purchase Price Allocations for Acquisitions

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

Accounts receivable	$	18.3
Inventories		2.0
Prepaid expenses and other current assets		4.3
Property, plant and equipment		10.4
Amortizable other intangible assets		37.5
Other noncurrent assets		15.1
Goodwill		55.6
Accounts payable and accrued liabilities		(21.5	)
Other noncurrent liabilities		(0.1	)
Deferred taxes-net		10.4
Total purchase price-net of cash acquired		132.0
Less: debt assumed		1.4
Less: fair value of contingent consideration		3.5
Net cash paid	$	127.1

Fair Value, Valuation Techniques and Related Unobservable Inputs of Level Three

The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements:

	Fair Value			Valuation Technique		Unobservable Input		Range
Customer relationships	$	31.4	Excess earnings, with and without method		Discount rate Attrition rate		16.0% - 17.0% 7.0% - 20.0%
Technology		14.5	Excess earnings, relief-from-royalty method, cost approach		Discount rate Obsolescence factor Royalty rate (after-tax)		16.0% - 17.0% 10.0% - 20.0% 4.5%
Trade names		3.5	Relief-from-royalty method		Discount rate Royalty rate (after-tax)		15.5% - 17.0% 0.3% - 1.2%
Non-compete agreements		2.6	Excess earnings, with and without method		Discount rate		16.0% - 17.0%
Contingent consideration		3.5	Probability weighted discounted future cash flows		Discount rate				4.5%