10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                     

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.)
35 West Wacker Drive, Chicago, Illinois	60601
(Address of principal executive offices)	(ZIP Code)

Registrant’s telephone number, including area code—(312) 326-8000

Securities registered pursuant to Section 12(b) of the Act:

	Title of each Class		Name of each exchange on which registered
Common Stock (Par Value $1.25)		NASDAQ

Indicated by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  þ    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 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  þ    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 (§229.405 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  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a 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 þ	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  þ

The aggregate market value of the shares of common stock (based on the closing price of these shares on the NASDAQ Stock Exchange—Composite Transactions) on June 30, 2015, the last business day of the registrant’s most recently completed second fiscal quarter, held by nonaffiliates was $3,607,975,994.

As of February 19, 2016, 208,766,693 shares of common stock were outstanding.

Documents Incorporated By Reference

Portions of the registrant’s proxy statement related to its annual meeting of stockholders scheduled to be held on May 19, 2016 are incorporated by reference into Part III of this Form 10-K.

TABLE OF CONTENTS

	Form 10-K Item No.	Name of Item	Page
Part I
	Item 1.	Business		3
	Item 1A.	Risk Factors		9
	Item 1B.	Unresolved Staff Comments		14
	Item 2.	Properties		14
	Item 3.	Legal Proceedings		15
	Item 4.	Mine Safety Disclosures		15
		Executive Officers of R.R. Donnelley & Sons Company		16
Part II
	Item 5.	Market for R.R. Donnelley & Sons Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		17
	Item 6.	Selected Financial Data		19
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
	Item 7A.	Quantitative and Qualitative Disclosures about Market Risk		51
	Item 8.	Financial Statements and Supplementary Data		51
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		52
	Item 9A.	Controls and Procedures		52
	Item 9B.	Other Information		54
Part III
	Item 10.	Directors and Executive Officers of R.R. Donnelley & Sons Company and Corporate Governance		55
	Item 11.	Executive Compensation		55
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		55
	Item 13.	Certain Relationships and Related Transactions, and Director Independence		55
	Item 14.	Principal Accounting Fees and Services		56
Part IV
	Item 15.	Exhibits, Financial Statement Schedules		57
		Signatures		58

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PART I

ITEM 1.  BUSINESS

Company Overview

R.R. Donnelley & Sons Company (“RR Donnelley,” the “Company,” “we,” “us,” and “our”), a Delaware corporation, helps organizations communicate more effectively by working to create, manage, produce, distribute and process content on behalf of our customers. The Company assists customers in developing and executing multichannel communication strategies that engage audiences, reduce costs, drive revenues and increase compliance. R.R. Donnelley’s innovative technologies enhance digital and print communications to deliver integrated messages across multiple media to highly targeted audiences at optimal times for clients in virtually every private and public sector. Strategically located operations provide local service and responsiveness while leveraging the economic, geographic and technological advantages of a global organization.

Segment Descriptions

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. The Publishing and Retail Services segment accounted for 22.4% of the Company’s consolidated net sales in 2015.

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, office products, direct mail, labels, statement printing, forms and packaging. The Variable Print segment accounted for 33.4% of the Company’s consolidated net sales in 2015.

Strategic Services

The Strategic Services segment includes the Company’s logistics services, financial print products and related services, print management offerings, digital and creative solutions and book publishing. The Strategic Services segment accounted for 23.8% of the Company’s consolidated net sales in 2015.

International

The International segment includes the Company’s non-U.S. printing operations in Asia, Europe, Latin America and Canada. This segment’s primary 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. The International segment accounted for 20.4% of the Company’s consolidated net sales in 2015.

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 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.

Financial and other information related to these segments is included in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Note 19, Segment Information, to the Consolidated Financial Statements. Additional information related to the Company’s International operations is included in Note 20, Geographic Area and Products and Services Information, to the Consolidated Financial Statements.

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Proposed Spinoff Transactions

On August 4, 2015, the Company announced that its Board of Directors intends to create three independent public companies: (i) a financial communications services company with estimated 2015 net sales of approximately $1.0 billion (“Donnelley Financial Solutions”), (ii) a publishing and retail-centric print services company with estimated 2015 net sales of approximately $3.5 billion (“LSC Communications”), and (iii) a multichannel communications management company with estimated 2015 net sales of approximately $6.8 billion (“RR Donnelley & Sons Company”). Estimated 2015 net sales for each company reflects the elimination of intercompany transactions; as a result net sales for each company may differ on a standalone basis. Donnelley Financial Solutions is expected to consist of the Company’s current financial reporting unit of the Company’s Strategic Services segment.  LSC Communications is expected to consist of the Company’s current Publishing and Retail Services segment as well as the office products reporting unit from the Company’s Variable Print segment, substantially all of the operations currently within the Europe reporting unit of the Company’s International segment, certain Mexican operations currently within the Latin America reporting unit of the Company’s International segment and the co-mail and related list services operations currently within the logistics reporting unit of the Company’s Strategic Services segment.  RR Donnelley & Sons Company is expected to consist of the current Variable Print segment except for the office products reporting unit that will become part of LSC Communications, the logistics reporting unit within the current Strategic Services segment except for the operations that will become part of LSC Communications, the sourcing and digital and creative solutions reporting units within the current Strategic Services segment, and the current International segment except for substantially all of the Europe reporting unit and certain Mexican operations that will become part of LSC Communications. The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of shares of stock in two new, independent, publicly traded companies, Donnelley Financial Solutions and LSC Communications.

The transactions are subject to customary conditions, including obtaining rulings from the Internal Revenue Service and/or tax opinions, execution of inter-company agreements and final approval by the Company’s Board of Directors. The Company expects to complete the transactions in October 2016, but there can be no assurance that the transactions will be completed on the anticipated timeline or at all or that the terms of the transactions will not change.  See Item 1A, Risk Factors, of Part I of this Annual Report on Form 10-K for certain risk factors relating to the proposed transactions. The disclosures within Item 7, Management Discussion and Analysis of Financial Condition and Results of Operations, of Part II of this Annual Report on Form 10-Kare on a consolidated Company basis, reflect the Company’s current operating and management structure, and do not take into account the proposed transactions.

Upon separation, the historical results of Donnelley Financial Solutions and LSC Communications will be presented as discontinued operations.

Business Acquisitions and Dispositions

2015 Acquisition

On June 8, 2015, the Company acquired Courier Corporation (“Courier”), a leader in digital printing and publishing primarily in the United States, specializing in educational, religious and trade books.

2015 Disposition

On April 29, 2015, the Company sold its 50.1% interest in its Venezuelan operating entity.

2014 Acquisitions

On March 25, 2014, the Company acquired substantially all of the North American operations of Esselte Corporation (“Esselte”), a developer and manufacturer of nationally branded and private label office and stationery products. On March 10, 2014, the Company acquired the assets of MultiCorpora R&D Inc. and MultiCorpora International Inc. (together “MultiCorpora”). On January 31, 2014, the Company acquired Consolidated Graphics, Inc. (“Consolidated Graphics”), a provider of digital and commercial printing, fulfillment services, print management and proprietary Internet-based technology solutions, with operations in North America, Europe and Asia.

2014 Dispositions

On August 15, 2014, the Company sold the assets and liabilities of Journalism Online, LLC (“Journalism Online”), a provider of online subscription management services. On August 11, 2014, the Company’s subsidiary, RR Donnelley Argentina S.A. (“RRDA”), filed for bankruptcy liquidation in bankruptcy court in Argentina. On February 7, 2014, the Company sold the assets and liabilities of Office Tiger Global Real Estate Services Inc. (“GRES”), its commercial and residential real estate advisory services business.

4

2013 Disposition

During the fourth quarter of 2013, the Company sold the assets and liabilities of R.R. Donnelley SAS (“MRM France”), its direct mail business located in Cosne sur Loire, France.

For further information on the above acquisitions and dispositions, see Note 2, Acquisitions and Dispositions, to the Consolidated Financial Statements.

Competitive Environment

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. One of the Company’s competitive strengths is that it offers a wide array of communications products and services, including print, which provide differentiated solutions for its customers. The Company works with its customers to create, manage, deliver and optimize their multi-channel communications strategies. The Company has and will continue to develop and expand its creative and design, content management, digital and print production, supply chain management and distribution services to address its customers’ evolving needs while supporting the strategic objective of becoming a leading global provider of integrated communication services.

The print and related services industry, in general, continues to have excess capacity and remains highly competitive. Despite consolidation in recent years, the 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 continue to differentiate its product and service offerings.

Digital technologies have impacted printed retail inserts, magazines and catalogs as some advertiser spending has moved from print to electronic media. Electronic communication and transaction technology has eliminated or reduced the role of many traditional printed products and has continued to drive electronic substitution in directory and statement printing, in part driven by environmental concerns and cost pressures at key customers. In recent years the trend in e-book substitution has shifted and the publishing industry has experienced growth in consumer print book volume, while sales of e-books have declined. 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 to offer customers innovative services and solutions that further secure the Company’s position as a technology leader in the industry.

The acquisitions of Courier, Consolidated Graphics, Esselte and MultiCorpora support the Company’s strategic objective of generating profitable growth and improved cash flow and liquidity through targeted acquisitions. These acquisitions have enhanced the Company’s existing capabilities and ability to serve its customers and have provided cost savings through the combination of best practices, complementary products and manufacturing and distribution capabilities.

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. Additionally, to align with its long-term strategic goals, the Company announced that it intends to create three independent public companies and expects the transactions to be effective in October 2016. The proposed spinoff transactions will allow each of the businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries. Refer to Business – Proposed Spinoff Transactions for further details regarding the proposed spinoff transactions.

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 volume in catalogs, retail inserts and books. Partially offsetting this pattern, demand for financial print and related services is typically stronger in the first half of the year due to annual compliance requirements. As a result of the acquisition of Consolidated Graphics, which provides significant campaign-related printed products, quarterly and annual results may also be impacted by U.S. election cycles. These typical seasonal patterns can be impacted by overall trends in the U.S. and world economy. The seasonal pattern in 2015 was in line with historical patterns.

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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 2015, 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 changes in price 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 the 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. The Company has undertaken various strategic initiatives to mitigate any foreseeable supply disruptions with respect to the Company’s ink requirements. The Company also resells waste paper and other print-related by-products and may be impacted by changes in prices for these by-products.

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. Decreases in fuel prices are also passed on to customers which negatively impacts sales. 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 changes in energy prices 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. Under the 2006 Postal Accountability and Enhancement Act, it had been anticipated that postage would increase annually by an amount equal to or slightly less than the Consumer Price Index (the “CPI”). However, on December 24, 2013, the Postal Regulatory Commission (the “PRC”) approved the United States Postal Service (“USPS”) Board of Governors’ request under the Exigency Provision in the applicable law for price increases of 4.3%. The exigent rate increase was approved as a surcharge in addition to a 1.7% rate increase, equal to the CPI, for total price increases of 6.0%, on average, across all significant mail categories, effective January 26, 2014. On January 15, 2015, the USPS filed for a CPI rate increase of approximately 2.0%, which was approved by the PRC on May 7, 2015, and became effective May 31, 2015.  In January 2016, the USPS announced that the 4.3% exigency rate increase is expected to be eliminated in April 2016. As a leading provider of print logistics and among the largest mailers of standard mail in the U.S., the Company works closely with its customers and the USPS to offer innovative products and mail preparation services to minimize postage 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 has been negatively impacted by increases in postal rates. The USPS is continuing to pursue its previously announced plans to restructure its mail delivery network, including the closure of many post office facilities and a possible suspension of Saturday service. The impact to the Company of the USPS’s restructuring plans, many of which require legislative action, cannot currently be estimated.Mail delivery services through the USPS accounted for approximately 43% of the Company’s logistics revenues during the year ended December 31, 2015.

Customers

For each of the years ended December 31, 2015, 2014 and 2013, no customer accounted for 10% or more of the Company’s consolidated net sales.

6

Technology, Research and Development

The Company has a research facility that supports the development and implementation of new technologies to meet customer needs and improve operating efficiencies. The Company’s cost for research and development activities is not material to the Company’s consolidated annual results of operations, financial position or cash flows.

Environmental Compliance

It is the Company’s policy to conduct its global operations in accordance with all applicable laws, regulations and other requirements. 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 adverse effect on the Company’s consolidated annual results of operations, financial position or cash flows.

Employees

As of December 31, 2015, the Company had approximately 68,400 employees.

Available Information

The Company maintains an Internet website at www.rrdonnelley.com where the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports are available without charge, as soon as reasonably practicable following the time they are filed with, or furnished to, the Securities and Exchange Commission (“SEC”). The Principles of Corporate Governance of the Company’s Board of Directors, the charters of the Audit, Human Resources and Governance, Responsibility & Technology Committees of the Board of Directors and the Company’s Principles of Ethical Business Conduct are also available on the Investor Relations portion of www.rrdonnelley.com, and will be provided, free of charge, to any shareholder who requests a copy. References to the Company’s website address do not constitute incorporation by reference of the information contained on the website, and the information contained on the website is not part of this document.

Special Note Regarding Forward-Looking Statements

The Company has made forward-looking statements in this Annual Report on Form 10-K 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 Annual Report on Form 10-K, 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 its forward-looking statements:

· the volatility and disruption of the capital and credit markets, and adverse changes in the global economy;

· successful execution of acquisitions and negotiation of future acquisitions;

· successful execution of the proposed spinoffs of LSC Communications and Donnelley Financial Solutions and the ability of the Company, LSC Communications and Donnelley Financial Solutions to perform as expected as separate, independent entities;

· the ability of the Company to integrate operations of acquisitions 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 rates of growth or decline in the Company’s core businesses;

· competitive pressures in all markets in which the Company operates;

· the Company’s ability to access debt and the capital markets and the ability of its counterparties to perform their contractual obligations under the Company’s lending and insurance agreements;

7

· changes in technology, including electronic substitution and migration of paper based documents to digital data formats;  

· factors that affect customer demand, including changes in postal rates, postal regulations and service levels, 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 prices received for the sale of by-products;

· changes in ratings of the Company or the Company’s debt securities;

· the ability of the Company to comply with covenants under its Credit Agreement and indentures governing its 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 or its vendors’ systems;

· the failure to properly use and protect customer information and data;

· the failure to properly protect the Company’s and its employees’ information and data;

· the effect of labor disruptions or 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 Eastern Europe, the Middle East or elsewhere;

· the possibility of a regional or global health pandemic outbreak;

· disruptions to the Company’s operations resulting from possible natural disasters, interruptions in utilities and similar events;

· 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.

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 Annual Report on Form 10-K should consider these forward-looking statements only as the Company’s current plans, estimates and beliefs. The Company does not undertake and specifically declines 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. The Company undertakes no obligation to update or revise any forward-looking statements in this Annual Report on Form 10-K to reflect any new events or any change in conditions or circumstances.

8

ITEM 1A.   RISK FACTORS

The Company’s consolidated results of operations, financial position and cash flows can be adversely affected by various risks. These risks include the principal factors listed below and the other matters set forth in this Annual Report on Form 10-K. You should carefully consider all of these risks.

Risks Relating to the Businesses of the Company

The proposed spinoffs of the Company’s Publishing and Retail Services Company and Financial Services Company may not be completed on the terms or timeline currently contemplated, if at all.

Unanticipated developments could delay, prevent or otherwise adversely affect the proposed spinoffs of LSC Communications and Donnelley Financial Solutions, including possible problems or delays in obtaining favorable rulings from the Internal Revenue Service or tax opinions, disruptions in general market conditions, or other developments.  In addition, consummation of the proposed transactions will require final approval from the Company’s Board of Directors. Therefore, the Company cannot assure that it will be able to complete the transactions on the terms or on the timeline that it announced, if at all.  Further, the Company could decide to consummate one of the spin-offs and not the other, depending on market conditions and other factors.

In order to position ourselves for the proposed spinoffs, we are actively pursuing structural and process realignment and restructuring actions within our operations. These actions could lead to disruption of our operations.  The Company will incur significant expenses in connection with the proposed spinoffs. In addition, completion of the proposed transactions will require significant amounts of management’s time and effort which may divert management’s attention from other aspects of the Company’s business operations.

If the proposed spinoffs are completed, they may not achieve the intended results.

If the proposed spinoff transactions are completed, the Company’s operational and financial profile will change upon the separation of LSC Communications and Donnelley Financial Solutions from the Company’s other businesses. As a result, the Company’s diversification of revenue sources will diminish, and the Company’s results of operations, cash flows, working capital and financing requirements may be subject to increased volatility and greater risk as a result of the concentration of our business in the multichannel communications management industry. Further, shares of the Company’s common stock will represent an investment in a smaller company than in existence today. These changes may not meet some shareholders’ investment strategies, which could cause investors to sell their shares of the Company’s common stock. Excessive selling could cause the relative market price of the Company’s common stock to decrease following the consummation of the proposed spinoff transactions.  

Further, the anticipated benefits to the Company of the proposed spinoff transactions are based on a number of assumptions, some of which may prove incorrect. Any such incorrect assumptions could adversely affect the Company’s business, results of operations or financial condition.

The terms of the spinoffs and the stand-alone capital structure of each entity have not been determined.

The terms of the proposed spinoffs and each entity’s stand-alone capital structure have not yet been determined. The Company’s preliminary plans are described in Business – Proposed Spinoff Transactions. However, the final capital structure and terms of the transactions may not coincide with those set forth in this Annual Report on Form 10-K.

Following the spinoffs, the price of the Company’s common stock may fluctuate significantly.

We cannot predict the prices at which the Company’s common stock may trade after the proposed spinoffs, the effect of the proposed spinoffs on the trading prices of the Company’s common stock or whether the market value of the Company’s common stock and the common stock of each of the new public companies held by a stockholder after the spinoffs will be, in the aggregate, less than, equal to or greater than the market value of the Company’s common stock held by such stockholder prior to the spinoffs.

9

The Company may be unable to hire and retain talented employees, including management, which may be exacerbated by the proposed spinoffs.

The Company’s success depends, in part, on its general ability to attract, develop, motivate and retain highly skilled employees. The loss of a significant number of the Company’s employees or the inability to attract, hire, develop, train and retain skilled personnel could have a serious negative effect on the Company. Various locations may encounter competition with other manufacturers for skilled labor. Many of these competitors may be able to offer significantly greater compensation and benefits or more attractive lifestyle choices than the Company offers. In addition, many members of the Company’s management have significant industry experience that is valuable to the Company’s competitors. The Company enters into non-solicitation and, as appropriate, non-competition agreements with its executive officers, prohibiting them contractually from soliciting the Company’s customers and employees and from leaving and joining a competitor within a specified period.

Furthermore, although senior management for LSC Communications and Donnelley Financial Solutions to be in place following the proposed spinoffs has not yet been identified, one or more of our executive officers may serve in similar or different roles for either company upon the completion of the proposed spinoff transactions, upon which they would resign from their current role with us. If one or more members of the Company’s senior management team leave, due to the spinoffs or otherwise, and cannot be replaced with a suitable candidate quickly, the Company could experience difficulty in managing its business properly, which could harm business prospects and the Company’s consolidated results of operations.  

The Proposed Spinoff Transactions, if Consummated, Could Result in Significant Tax Liability.

We expect to obtain an opinion from our outside legal counsel substantially to the effect that, among other things, the distributions in connection with the proposed spinoff transactions will qualify as tax-free distributions under the U.S. Internal Revenue Code of 1986, as amended (the “Code”). The opinion will not be binding on the IRS or the courts. Additionally, we have applied for a private letter ruling from the IRS concluding that certain limited aspects of the distributions will not prevent the distributions from satisfying certain requirements for tax-free treatment under the Code. The opinion and the private letter ruling will rely on customary factual representations and assumptions, which if incorrect or inaccurate may jeopardize the ability to rely on such opinion and letter ruling.

If either or both of the distributions do not qualify for tax-free treatment for U.S. federal income tax purposes, then, in general, we would be subject to tax as if we had sold the common stock of such spun-off entity in a taxable sale for its fair value. In that case, it is expected that RR Donnelley shareholders would be subject to tax as if they had received a distribution equal to the fair value of the spun-off entity’s common stock that was distributed to them, which generally would be treated first as a taxable dividend to the extent of our earnings and profits, then as a non-taxable return of capital to the extent of each holder’s tax basis in its Company common stock, and thereafter as capital gain with respect to any remaining value. It is expected that the amount of any such taxes to RR Donnelley shareholders and us would be substantial if this were to occur.

Global market and economic conditions, as well as the effects of these conditions on customers’ businesses could adversely affect the Company.

Global economic conditions affect customers’ businesses and the markets they serve. Demand for advertising tends to correlate with changes in the level of economic activity in the markets customers serve. Because a significant part of the Company’s business relies on its customers’ advertising spending, a prolonged downturn in the global economy and an uncertain economic outlook could further reduce the demand for printing and related services that the Company provides to these customers. Economic weakness and constrained advertising spending may result in decreased revenue, operating margin, earnings and growth rates and difficulty in managing inventory levels and collecting accounts receivable. The Company may experience reduced demand for its products and services due to economic conditions and other macroeconomic factors affecting consumers’ and businesses’ spending behavior. In addition, customer difficulties could result in increases in bad debt write-offs and allowances for doubtful accounts receivable. In particular, the Company’s exposure to certain industries currently experiencing financial difficulties and certain financially troubled customers could have an adverse effect on the Company’s results of operations. The Company may experience operating margin declines in certain businesses, reflecting the effect of items such as competitive price pressures, inventory write-downs, cost increases for wages and materials, and increases in pension and other postretirement benefits plan funding requirements. Economic downturns may also result in restructuring actions and associated expenses and impairment of long-lived assets, including goodwill and other intangibles. Uncertainty about future economic conditions makes it difficult for the Company to forecast operating results and to make decisions about future investments. Delays or reductions in customers’ spending would have an adverse effect on demand for the Company’s products and services, which could be material, and consequently impact the Company’s consolidated results of operations, financial position and cash flow.

10

Adverse credit market conditions may limit the Company’s ability to obtain future financing.

Uncertainty and volatility in global financial markets may cause financial institutions to fail, may cause lenders to reduce lending or may cause investors to reinvest in assets that are considered less risky. The failure of a financial institution that supports the Company’s existing credit agreement would reduce the size of its committed facility unless a replacement institution were added.   Furthermore, the Company expects to revise its existing financing structure to consummate the proposed spinoff transactions, including through refinancing or debt tender or exchange transactions.  Any potential capital markets transaction will be dependent on market conditions, which may result in the Company receiving financing on terms less favorable to the Company than its existing financings.  Further, the Company expects LSC Communications and Donnelley Financial Solutions will rely on access to credit and the capital markets immediately prior to consummation of the spinoff transactions to raise capital to refinance existing Company obligations or to finance their ongoing business needs, and the inability to obtain financing on commercially reasonable terms or at all may alter, hinder or prevent the consummation of the spinoff transactions.

The Company’s operating performance and creditworthiness may limit its ability to obtain future financing and the cost of any such capital may be higher than in past periods.

The Company’s access to future financing will depend on a variety of factors such as the general availability of credit, its credit ratings and credit capacity at the time it pursues such financing. The Company’s current corporate credit ratings are below investment grade and, as a result, the Company’s borrowing costs may further increase or ability to borrow may be limited. The Company’s obligations under its current $1.5 billion senior secured revolving credit facility (the “Credit Agreement”) which expires September 9, 2019, are guaranteed by material and certain other domestic subsidiaries and are secured by a pledge of the equity interests of certain subsidiaries, including most of its domestic subsidiaries, and a security interest in substantially all of the domestic current assets and mortgages of certain domestic real property of the Company. The Credit Agreement is subject to a number of covenants, including a minimum Interest Coverage Ratio and a maximum Leverage Ratio, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments, dispose of certain assets and may also limit the use of proceeds. The Credit Agreement generally allows annual dividend payments of up to $225.0 million in aggregate, though additional dividends may be allowed subject to certain conditions. If adequate capital is not available to the Company and its internal sources of liquidity prove to be insufficient, or if future financings require more restrictive covenants, such combination of events could adversely affect the Company’s ability to (i) acquire new businesses or enter new markets, (ii) service or refinance its existing debt, (iii) pay dividends on common stock, (iv) make necessary capital investments, and (v) make other expenditures necessary for the ongoing conduct of its business.

The indentures governing the notes and debentures the Company issues do not contain restrictive covenants and the Company may incur substantially more debt or take other actions, including engaging in mergers and acquisitions, paying dividends and making other distributions to holders of equity securities, and disposing of certain assets, which may adversely affect the Company’s ability to satisfy its obligations under the notes and debentures issued under its indentures.

Although the Credit Agreement is subject to a number of negative and financial covenants, including a minimum interest coverage ratio and a maximum leverage ratio, and covenants that restrict the Company’s ability to incur additional indebtedness, engage in mergers and acquisitions, pay dividends and make other distributions to the holders of the Company’s equity securities, and dispose of certain assets, the indentures governing the Company’s outstanding notes and debentures do not contain financial or operating covenants or restrictions on the incurrence of indebtedness, the payment of dividends or making other distributions, or the disposition of certain assets. In addition, the limited covenants applicable to the notes and debentures do not require the Company to achieve or maintain any minimum financial results relating to its financial position or results of operations.

In carrying out the Company’s strategy focused on maximizing long-term shareholder value, the Company may enter into transactions which may increase its financial leverage. The Company’s ability to recapitalize, incur additional debt and take a number of other actions that are not limited by the terms of the indentures governing its notes and debentures could have the effect of diminishing the Company’s ability to make payments on those notes and debentures when due, and require the Company to dedicate a substantial portion of its cash flow from operations to payments on its indebtedness, which would reduce the availability of cash flow to fund the Company’s operations, working capital and capital expenditures.

Fluctuations in the costs of paper, ink, energy, by-products and other raw materials may adversely impact the Company.

Purchases of paper, ink, energy and other raw materials represent a large portion of the Company’s costs. Increases in the costs of these inputs may increase the Company’s costs and the Company may not be able to pass these costs on to customers through higher prices. In addition, the Company may not be able to resell waste paper and other print-related by-products or may be adversely impacted by decreases in the prices for these by-products. Increases in the cost of materials may adversely impact customers’ demand for the Company’s printing and related services.

11

The Company may be adversely affected by a decline in the availability of raw materials.

The Company is dependent on the availability of paper, ink and other raw materials to support its operations. Unforeseen developments in these markets could result in a decrease in the supply of paper, ink or other raw materials and could cause a decline in the Company’s revenues.

The financial condition of the Company’s customers may deteriorate.

Many of the Company’s customers participate in highly competitive markets, and their financial condition may deteriorate as a result. A decline in the financial condition of the Company’s customers would hinder the Company’s ability to collect amounts owed by customers. In addition, such a decline would result in lower demand for the Company’s products and services. A lack of liquidity in the capital markets or a sustained period of unfavorable economic conditions will increase the Company’s exposure to credit risks and result in increases in bad debt write-offs and allowances for doubtful accounts receivable.

The Company may be unable to improve its operating efficiency rapidly enough to meet market conditions.

Because the markets in which the Company competes are highly competitive, the Company must continue to improve its operating efficiency in order to maintain or improve its profitability. There is no assurance that the Company will be able to do so in the future. In addition, the need to reduce ongoing operating costs may result in significant up-front costs to reduce workforce, close or consolidate facilities, or upgrade equipment and technology.

The Company may be unable to successfully integrate the operations of acquired businesses and may not achieve the cost savings and increased revenues anticipated as a result of these acquisitions.

Achieving the anticipated benefits of acquisitions will depend in part upon the Company’s ability to integrate these businesses in an efficient and effective manner. The integration of companies that have previously operated independently may result in significant challenges, and the Company may be unable to accomplish the integration smoothly or successfully. In particular, the coordination of geographically dispersed organizations with differences in corporate cultures and management philosophies may increase the difficulties of integration. The integration of acquired businesses may also require the dedication of significant management resources, which may temporarily distract management’s attention from the day-to-day operations of the Company. In addition, the process of integrating operations may cause an interruption of, or loss of momentum in, the activities of one or more of the Company’s businesses and the loss of key personnel from the Company or the acquired businesses. Further, employee uncertainty and lack of focus during the integration process may disrupt the businesses of the Company or the acquired businesses. The Company’s strategy is, in part, predicated on the Company’s ability to realize cost savings and to increase revenues through the acquisition of businesses that add to the breadth and depth of the Company’s products and services. Achieving these cost savings and revenue increases is dependent upon a number of factors, many of which are beyond the Company’s control. In particular, the Company may not be able to realize the benefits of more comprehensive product and service offerings, anticipated integration of sales forces, asset rationalization and systems integration.

The trend of increasing costs to provide health care and other benefits to the Company’s employees and retirees may continue.

The Company provides health care and other benefits to both employees and retirees. For many years, costs for health care have increased more rapidly than general inflation in the U.S. economy. If this trend in health care costs continues, the Company’s cost to provide such benefits could increase, adversely impacting the Company’s profitability. Changes to health care regulations in the U.S. may also increase the Company’s cost of providing such benefits.

Changes in market conditions or lower returns on assets may increase required pension and other postretirement benefits plan contributions in future periods.

The funded status of the Company’s pension and other postretirement benefits 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 coupled with low interest rates have substantially reduced, and in the future could further reduce, the funded status of the plans. These reductions have increased the level of expected required pension and other postretirement benefits plan 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 lower asset returns. If adverse market conditions were to continue for an extended period of time, the Company’s costs and required cash contributions associated with pension and other postretirement benefits plans may substantially increase in future periods.

12

There are risks associated with operations outside the United States.

The Company has significant operations outside the United States. Revenues from the Company’s operations in geographic regions outside the United States accounted for approximately 21% of the Company’s consolidated net sales for the year ended December 31, 2015. As a result, the Company is subject to the risks inherent in conducting business outside the United States, including the impact of economic and political instability of those countries in which the Company operates. The volatile economic environment has increased the risk of disruption and losses resulting from hyper-inflation, currency devaluation and tax or regulatory changes in certain countries in which the Company has operations.

The Company is exposed to significant risks related to potential adverse changes in currency exchange rates.

The Company is exposed to market risks resulting from changes in the currency exchange rates of the currencies in the countries in which it does business. Although operating in local currencies may limit the impact of currency rate fluctuations on the operating results of the Company’s non-U.S. subsidiaries, fluctuations in such rates may affect the translation of these results into the Company’s consolidated financial statements. To the extent borrowings, sales, purchases, revenues and expenses or other transactions are not in the applicable local currency, the Company may enter into foreign currency spot and forward contracts to hedge the currency risk. Management cannot be sure, however, that the Company’s efforts at hedging will be successful, and such efforts could, in certain circumstances, lead to losses.

A decline in expected profitability of the Company or individual reporting units of the Company could result in the impairment of assets, including goodwill, other long-lived assets and deferred tax assets.

The Company holds material amounts of goodwill, other long-lived assets and deferred tax assets on its balance sheet. A decline in expected profitability, particularly if there is a decline in the global economy, could call into question the recoverability of the Company’s related goodwill, other long-lived tangible and intangible assets or deferred tax assets and require the write down or write off these assets or, in the case of deferred tax assets, recognition of a valuation allowance through a charge to income. Such an occurrence has had and could continue to have a material adverse effect on the Company’s consolidated results of operations, financial position and cash flows.

Risks Related to the Printing and Related Services Industry

The highly competitive market for the Company’s products and industry consolidation may continue to create adverse price pressures.

The markets for the majority of the Company’s product categories are highly fragmented and the Company has a large number of competitors. Management believes that excess capacity in the Company’s markets has caused downward price pressure and that this trend is likely to continue. In addition, consolidation in the markets in which the Company competes may increase competitive price pressures due to competitors lowering prices.

The substitution of electronic delivery for printed materials may continue to adversely affect the Company’s businesses.

Electronic delivery of documents and data, including the online distribution and hosting of media content, offer alternatives to traditional delivery of printed documents. Consumers continue to accept electronic substitution in directory and statement printing and are replacing traditional reading of print materials with online, hosted media content or e-reading devices. The extent to which consumers will continue to accept electronic delivery is uncertain and it is difficult to predict future rates of acceptance of these alternatives. Electronic delivery has negatively impacted the Company’s products, such as directories, books, forms and statement printing. Digital technologies have also impacted printed magazines, catalogs and retail inserts, as some advertising spending has moved from print to electronic media. To the extent that consumers, customers and regulators continue to accept these alternatives, the Company’s products will be adversely affected.

Changes in the rules and regulations to which the Company is subject may increase the Company’s costs.

The Company is subject to numerous rules and regulations, including, but not limited to, product safety, environmental and health and welfare benefit regulations. These rules and regulations may be changed by local, state or federal governments in countries in which the Company operates. Changes in these regulations may result in a significant increase in the Company’s costs to comply. Compliance with changes in rules and regulations could require increases to the Company’s workforce, increased cost for compensation and benefits, or investments in new or upgraded equipment. In addition, growing concerns about climate change, including the impact of global warming, may result in new regulations with respect to greenhouse gas emissions (including carbon dioxide) and/or “cap and trade” legislation. Compliance with new rules and regulations or changes in existing rules and regulations could result in additional costs to the Company.

13

Declines in general economic conditions or political unrest may adversely impact the Company’s business.

In general, demand for the Company’s products and services are highly correlated with general economic conditions. Declines in economic conditions in the U.S., or in other countries in which the Company operates, may adversely impact the Company’s consolidated financial results. Because such declines in demand are difficult to predict, the Company or the industry may have increased excess capacity as a result. An increase in excess capacity may result in declines in prices for the Company’s products and services. The overall business climate may also be impacted by wars or acts of terrorism. Such acts may have sudden and unpredictable adverse impacts on demand for the Company’s products and services.

Changes in the rules and regulations to which customers are subject may impact demand for the Company’s products and services.

Many of the Company’s customers are subject to rules and regulations requiring certain printed or electronic communications, governing the form of such communications and protecting the privacy of consumers. Changes in these regulations may impact customers’ business practices and could reduce demand for the Company’s products and services. Changes in such regulations could eliminate the need for certain types of communications altogether or such changes may impact the quantity or format of such communications.

Changes in postal rates, regulations and delivery structure may adversely impact demand for the Company’s products and services.

Postal costs are a significant component of many of the Company’s customers’ cost structures and postal rate changes can influence the number of pieces and types of mailings that the Company’s customers mail. On December 24, 2013, the PRC approved the USPS Board of Governors’ request for an exigent price increase of 4.3%. The exigent rate increase was approved as a surcharge in addition to a 1.7% rate increase, equal to the CPI, for total price increases of 6.0%, on average, across all significant mail categories, effective January 26, 2014. On January 15, 2015, the USPS filed for a CPI rate increase of approximately 2.0%, which was approved by the PRC on May 7, 2015, and became effective May 31, 2015. In January 2016, the USPS announced that the 4.3% exigency rate increase is expected to be eliminated in April 2016. In addition, the USPS has incurred significant financial losses in recent years and may, as a result, implement significant changes to the breadth or frequency of its mail delivery. The USPS is continuing to pursue its previously announced plans to restructure its mail delivery network, including the closure of many post office facilities and a possible suspension of Saturday service. The impact to the Company of the USPS’s restructuring plans, many of which require legislative action, cannot currently be estimated. If implemented, such changes could impact customers’ ability or willingness to communicate by mail. Declines in print volumes mailed would have an adverse effect on the Company’s business.

A failure to adapt to technological changes to address the changing demands of customers may adversely impact the Company’s business.

Many of the end markets in which customers of the Company compete are experiencing changes due to technological progress and changes in consumer preferences.  In order to grow and remain competitive, the Company will need to continue to adapt to future changes in technology, enhance the Company's existing offerings and introduce new offerings to address the changing demands of customers.  If the Company is unable to continue to exploit new and existing technologies to distinguish its products and services from those of its competitors or adapt to new distribution methods, the Company’s business may be adversely affected.

Technological developments and changing demands of customers may require additional investment in new equipment and technologies. The Company must monitor changes in its customers’ markets and develop new solutions to meet customers’ needs. The development of such solutions may be costly and there is no assurance that these solutions will be accepted by customers. If the Company is unable to adapt to technological changes on a timely basis or at an acceptable cost, customers’ demand for the Company’s products and services may be adversely affected.

ITEM 1B.   UNRESOLVED STAFF COMMENTS

The Company has no unresolved written comments from the SEC staff regarding its periodic or current reports under the Securities Exchange Act of 1934.

ITEM 2.   PROPERTIES

The Company’s corporate office is located in leased office space in Chicago, Illinois. As of December 31, 2015, the Company leased or owned 368 U.S. facilities, some of which had multiple buildings and warehouses, and these U.S. facilities encompassed approximately 42.9 million square feet. The Company leased or owned 137 international facilities, some of which had multiple buildings and warehouses, encompassing approximately 10.1 million square feet in Canada, Latin America, Europe and Asia. Of the Company’s U.S. and international facilities, approximately 31.5 million square feet of space was owned, while the remaining 21.5 million square feet of space was leased.

14

ITEM 3.   LEGAL PROCEEDINGS

For a discussion of certain litigation involving the Company, see Note 10, Commitments and Contingencies, to the Consolidated Financial Statements.

ITEM 4.   MINE SAFETY DISCLOSURES

Not applicable.

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EXECUTIVE OFFICERS OF R.R. DONNELLEY & SONS COMPANY

Name, Age and Positions with the Company	Officer Since		Business Experience
Thomas J. Quinlan, III 53, President and Chief Executive Officer		2004	Served as RR Donnelley’s President and Chief Executive Officer since April 2007. Prior to this, served as Group President, Global Services since October 2006 and Chief Financial Officer since April 2006. Prior to this, served as Executive Vice President, Operations since February 2004.
Suzanne S. Bettman 51, Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer		2004	Served as RR Donnelley’s Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer since January 2007. Served previously as Senior Vice President, General Counsel since March 2004.
Andrew B. Coxhead 47, Senior Vice President and Chief Accounting Officer		2007	Served as RR Donnelley’s Senior Vice President and Chief Accounting Officer since October 2007, and Corporate Controller from October 2007 to January 2013. Prior to this, served as Vice President, Assistant Controller since September 2006. Prior to this, from 1995 until 2006, served in various capacities with RR Donnelley in financial planning, accounting, manufacturing management, operational finance and mergers and acquisitions.
Daniel L. Knotts 51, Chief Operating Officer		2007	Served as RR Donnelley’s Chief Operating Officer since January 2013. Prior to this, served as Group President from April 2007 to December 2012 and Chief Operating Officer, Global Print Solutions from January 2007 to April 2007. Prior to this, from 1986 until 2007, served in various capacities with RR Donnelley, including Group Executive Vice President, Operations, Publishing and Retail Services and President, Catalog/Retail/Magazine Solutions, RR Donnelley Print Solutions.
Daniel N. Leib 49, Executive Vice President and Chief Financial Officer		2009	Served as RR Donnelley’s Executive Vice President and Chief Financial Officer since May 2011. Prior to this, served as Group Chief Financial Officer and Senior Vice President, Mergers and Acquisitions since August 2009 and Treasurer from June 2008 to February 2010. Prior to this, served as RR Donnelley’s Senior Vice President, Treasurer, Mergers and Acquisitions and Investor Relations since July 2007. Prior to this, from May 2004 to 2007, served in various capacities in financial management, corporate strategy and investor relations.

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PART II

ITEM 5. MARKET FOR R.R. DONNELLEY & SONS COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

RR Donnelley’s common stock is listed and traded on the NASDAQ Stock Market.

As of February 19, 2016, there were 6,994 stockholders of record of the Company’s common stock. Quarterly closing prices of the Company’s common stock, as reported on the NASDAQ, and dividends paid per share during the years ended December 31, 2015 and 2014, are contained in the chart below:

					Closing Common Stock Prices
	Dividends Paid				2015				2014
	2015		2014		High		Low		High		Low
First Quarter	$	0.26	$	0.26	$	19.69	$	15.66	$	20.38	$	17.15
Second Quarter		0.26		0.26		20.13		17.43		18.30		15.10
Third Quarter		0.26		0.26		18.00		14.31		17.82		15.85
Fourth Quarter		0.26		0.26		17.22		14.40		17.70		15.02

The Credit Agreement generally allows annual dividend payments of up to $225.0 million in aggregate, though additional dividends may be allowed subject to certain conditions. For more detail refer to the Credit Agreement and its amendments filed as exhibits to this Annual Report on Form 10-K.

ISSUER PURCHASES OF EQUITY SECURITIES

There were no repurchases of equity securities during the three months ended December 31, 2015.

EQUITY COMPENSATION PLANS

For information regarding equity compensation plans, see Item 12 of Part III of this Annual Report on Form 10-K.

PEER PERFORMANCE TABLE

The graph below compares five-year returns of the Company’s common stock with those of the S&P 500 Index and a selected peer group of companies. The comparison assumes all dividends have been reinvested, and an initial investment of $100 on December 31, 2010. The returns of each company in the peer group have been weighted to reflect their market capitalizations.

Because the Company’s services and customers are so diverse, the Company does not believe that any single published industry index is appropriate for comparing stockholder return. Therefore, the peer group used in the performance graph combines two industry groups identified by Value Line Publishing, Inc., the publishing group (including printing companies) and the newspaper group. The Company itself has been excluded, and its contributions to the indices cited have been subtracted out. Changes in the peer group from year to year result from companies being added to or deleted from the Value Line publishing group or newspaper group.

17

Comparison of Five-Year Cumulative Total Return Among RR Donnelley, S&P 500 Index and Peer Group*

	Base Period	Fiscal Years Ended December 31,
Company Name/Index	2010	2011		2012		2013		2014		2015
RR Donnelley	100		87.91		60.16		146.75		129.15		120.05
Standard & Poor's 500	100		102.11		118.45		156.82		178.29		180.75
Peer Group	100		104.43		128.27		198.68		223.29		234.74

Below are the specific companies included in the peer group.

*Peer Group Companies
A.H. Belo Corp.	McClatchy Co.
American Greetings(a)	McGraw-Hill Financial Inc.(b)
Deluxe Corp.	Media General Inc.
Scripps (E.W.) Co.	Meredith Corp.
Gannett Co.	New York Times Co.
Graham Holdings Co.	Scholastic Corp.
Journal Communications Inc.	John Wiley & Sons Co.
__________________

(a) American Greetings was included through August 9, 2013, when American Greetings went private.

(b) Name change from the McGraw-Hill Companies

Consolidated Graphics Inc. was acquired by RR Donnelley on January 31, 2014, and as a result has been excluded from the peer group.

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ITEM 6.   SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA

(in millions, except per share data)

	2015		2014		2013		2012			2011
Net sales	$	11,256.8	$	11,603.4	$	10,480.3	$	10,221.9		$	10,611.0
Net earnings (loss) attributable to RR Donnelley common shareholders		151.1		117.4		211.2		(651.4	)		(122.6	)
Net earnings (loss) attributable to RR Donnelley common shareholders per diluted share		0.73		0.59		1.15		(3.61	)		(0.63	)
Total assets		7,279.3		7,608.8		7,205.1		7,240.4			8,262.0
Long-term debt		3,188.3		3,398.6		3,553.9		3,397.9			3,397.1
Cash dividends per common share		1.04		1.04		1.04		1.04			1.04

Reflects results of acquired businesses from the relevant acquisition dates.

Includes the following significant items:

	Pre-tax			After-tax
Year ended December 31, 2015
Restructuring, impairment and other charges – net	$	122.6		$	91.5
Loss on Venezuela currency remeasurement	30.3				17.0
Loss primarily related to the disposal of the Venezuelan operating entity	15.7			15.7
Acquisition-related expenses	14.3			13.7
Purchase accounting inventory adjustments	10.8				6.6
Spinoff-related transaction expenses	13.6			9.3
Gain from the sale of one of the Company’s affordable housing investments		(3.9	)		(2.4	)
Loss from the impairment of the Company’s investment in the Brazilian operations of Courier	2.8			2.8
Loss from the impairment of an equity investment	1.3			1.3
Tax expense due to the receipt of an unfavorable court decision relating to payment of prior year taxes in the International segment		—			6.0

	Pre-tax			After-tax
Year ended December 31, 2014
Restructuring, impairment and other charges - net	$	133.7		$	97.0
Pension settlement charges		95.7			58.4
Loss on debt extinguishment		77.1			49.8
Net loss on Venezuela currency remeasurement		18.4			8.2
Loss on bankruptcy liquidation of RRDA, a subsidiary of RR Donnelley		16.4			14.2
Purchase accounting inventory adjustments		14.3			9.1
Net gain on sale of Journalism Online and GRES		(10.4	)		(6.4	)
Net gain on bargain purchase of Esselte		(9.5	)		(9.5	)
Acquisition-related expenses		8.6			6.9
Gain from the sale of the  Company's shares of a previously impaired equity investment		(3.0	)		(1.9	)
Loss from the impairment of an equity investment		1.3			0.8
Tax benefit related to the decline in value of an entity within the Strategic Services segment		—			(15.2	)

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	Pre-tax		After-tax
Year ended December 31, 2013
Restructuring, impairment and other charges – net	$	133.5	$	88.2
Loss on debt extinguishment		81.9		53.9
Loss on the disposal of MRM France direct mail business in the International segment		17.9		12.3
Acquisition-related expenses		5.9		5.2
Loss from the impairment of equity investments		5.5		3.6
Net loss on Venezuela currency remeasurement		3.2		1.0
Tax benefit related to the decline in value and reorganization of certain entities within the Publishing and Retail Services segment		—		(58.5	)
Tax benefit for previously unrecognized tax benefits related to the resolution of certain U.S. federal uncertain tax positions		—		(7.2	)

	Pre-tax			After-tax
Year ended December 31, 2012
Restructuring, impairment and other charges – net	$	1,118.5		$	981.9
Loss on debt extinguishment	16.1			10.6
Loss from the impairment of an equity investment	4.1			2.6
Gain on pension curtailment		(3.7	)		(2.8	)
Acquisition-related expenses		2.5			2.2
Valuation allowance provision on certain deferred tax assets in Latin America		—		32.7
Tax benefit for previously unrecognized tax benefits related to the expected resolution of certain federal tax matters		—			(26.1	)
Tax benefit related to the decline in value and reorganization of certain entities within the International segment		—			(22.4	)
Tax provision related to certain foreign earnings no longer considered to be permanently reinvested		—			11.0

	Pre-tax			After-tax
Year ended December 31, 2011
Restructuring, impairment and other charges – net	$	667.8		$	532.8
Loss on debt extinguishment	69.9			44.1
Gain on pension curtailment		(38.7	)		(24.3	)
Contingent consideration earned by the prior owners of an  acquired business	15.3			9.7
Gain on the Helium investment		(9.8	)		(9.5	)
Acquisition-related expenses	2.2				2.0
Recognition of income tax benefits due to the expiration of U.S. federal statutes of limitations for certain years		—		74.8

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  

The following discussion of RR Donnelley’s financial condition and results of operations should be read together with the consolidated financial statements and notes to those statements included in Item 15 of Part IV of this Annual Report on Form 10-K.

Business

For a description of the Company’s business, segments and product and service offerings, see Item 1, Business, of Part I of this Annual Report on Form 10-K.

The Company separately reports its net sales, related costs of sales and gross profit for its product and service offerings. The Company’s product offerings primarily consist of magazines, catalogs, retail inserts, commercial and digital print, books, financial print, statement printing, direct mail, labels, office products, packaging, forms, manuals and other related products procured through the Company’s print management offering and directories. The Company’s service offerings primarily consist of logistics, EDGAR-related and eXtensible Business Reporting Language (“XBRL”) financial services, certain business outsourcing services and digital and creative solutions.

Executive Overview

2015 OVERVIEW

Net sales decreased by $346.6 million, or 3.0%, in 2015 compared to 2014. On a pro forma basis, the Company’s net sales decreased by approximately $653.6 million, or 5.4% (see Note 2, Acquisitions and Dispositions, to the Consolidated Financial Statements). There was a $251.0 million, or 2.2%, decrease due to changes in foreign exchange rates. In addition to the impact of foreign exchange rates, the net sales decrease was due to volume declines in the Publishing and Retail Services and Variable Print segments, an $85.2 million, or 0.7%, decrease due to the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity, an $80.0 million, or 0.7%, decrease due to a decline in pass-through paper sales, a decrease in fuel surcharges in the Strategic Services segment and price pressures.  The decreases were partially offset by the acquisition of Courier and increases in volume in the Strategic Services segment.

The Company continues to take actions across all platforms to reduce its cost structure and enhance productivity. During the year ended December 31, 2015, the Company realized cost savings from restructuring activities, including the reorganization of administrative and support functions across all segments as well as continuing facility consolidations and reorganizations across platforms. Additionally, cost savings were realized as a result of synergies from the acquisitions of Consolidated Graphics, Esselte and Courier and lower incentive compensation expense.  

Net cash provided by operating activities for the year ended December 31, 2015 was $652.0million as compared to $722.7 million for the year ended December 31, 2014. The decrease in net cash provided by operating activities reflected the timing of payments for employee-related liabilities and higher payments for incentive compensation costs and taxes, partially offset by lower pension and other postretirement benefit plan contributions.

During the year ended December 31, 2015, the Company announced that it intends to spin off two new independent public companies as described in more detail in Item 1,Business – Proposed Spinoff Transactions, of Part I of this Annual Report on Form 10-K. In connection with the proposed spinoff transactions, the Company incurred $13.6 million of spinoff-related transaction expenses during the year ended December 31, 2015. The Company expects to incur a significant amount of spinoff-related transaction and transition expenses in 2016, including information technology, consulting, real estate, finance and other incremental expenses. The disclosures within this Management’s Discussion and Analysis of Financial Condition and Results of Operations are on a consolidated basis, reflect the Company’s current operating and management structure and do not take into account the proposed transactions.

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2015 Financial Performance

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 year ended December 31, 2015, from the year ended December 31, 2014, were due to the following:

	Income from Operations			Operating Margin			Net Earnings Attributable to RR Donnelley Common Shareholders			Net Earnings Attributable to RR Donnelley Shareholders Per Diluted Share
	(in millions, except margin and per share data)
For the year ended December 31, 2014	$	515.9			4.4	%	$	117.4		$	0.59
2015 restructuring, impairment and other charges - net		(122.6	)		(1.1	%)		(91.5	)		(0.44	)
2014 restructuring, impairment and other charges - net		133.7			1.2	%		97.0			0.49
Spinoff-related transaction expenses		(13.6	)		(0.1	%)		(9.3	)		(0.04	)
Acquisition-related expenses		(5.7	)		0.0	%		(6.8	)		(0.04	)
Purchase accounting inventory adjustments		3.5			0.0	%		2.5			0.02
Pension settlement charges		95.7			0.8	%		58.4			0.29
Loss on debt extinguishment		—			—			49.8			0.25
Net loss on disposals of businesses		—			—			(22.1	)		(0.11	)
Loss on bankruptcy of subsidiary		—			—			14.2			0.07
Gain on bargain purchase		—			—			(9.5	)		(0.05	)
Venezuela currency remeasurement		—			—			(8.8	)		(0.04	)
Net loss on investments		—			—			(2.8	)		(0.01	)
Income tax adjustments		—			—			(21.2	)		(0.11	)
Operations		(19.5	)		0.0	%		(16.2	)		(0.14	)
For the year ended December 31, 2015	$	587.4			5.2	%	$	151.1		$	0.73

2015 restructuring, impairment and other charges - net: included pre-tax charges of $44.3 million for employee termination costs; $24.6 million of other charges, primarily for integration charges related to the Courier acquisition; $18.0 million for the impairment of goodwill in the Europe and Latin America reporting units, respectively, within the International segment; $17.6 million of lease termination and other restructuring costs; $11.9 million for the impairment of intangible assets, substantially all related to acquired customer relationship intangible assets; and $6.2 million for net impairment charges of other long-lived assets, primarily for buildings and machinery and equipment associated with facility closures.

2014 restructuring, impairment and other charges - net: included $35.5 million for other estimated charges related to the decision to withdraw from certain multi-employer pension plans serving facilities that are currently operating; $30.3 million for employee termination costs; $20.8 million of lease termination and other restructuring costs, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures; $18.1 million for the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit; $14.0 million for impairment of other long-lived assets, primarily for buildings and machinery and equipment associated with facility closures; $13.6 million for the impairment of acquired customer relationship intangible assets; and $1.4 million for the impairment of acquired tradenames.

Spinoff-related transaction expenses: included pre-tax charges of $13.6 million ($9.3 million after-tax) related to consulting, tax advice, legal and other expenses for the year ended December 31, 2015 associated with the proposed spinoff transactions.

Acquisition-related expenses: included pre-tax charges of $14.3 million ($13.7 million after-tax) related to legal, accounting and other expenses for the year ended December 31, 2015 associated with completed or contemplated acquisitions. For the year ended December 31, 2014, these pre-tax charges were $8.6 million ($6.9 million after-tax).

Purchase accounting inventory adjustments: included pre-tax charges of $10.8 million ($6.6 million after-tax) for the year ended December 31, 2015 as a result of inventory purchase accounting adjustments for Courier. For the year ended December 31, 2014, these pre-tax charges were $14.3 million ($9.1 million after-tax) as a result of inventory purchase accounting adjustments for Consolidated Graphics and Esselte.

Pension settlement charges: included pre-tax charges of $95.7 million ($58.4 million after-tax) for the year ended December 31, 2014, related to lump-sum pension settlement payments.

Loss on debt extinguishment: included a pre-tax loss of $77.1 million ($49.8 million after-tax) for the year ended December 31, 2014, related to the premiums paid, unamortized debt issuance costs and other expenses due to the repurchase of $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018 and $50.0 million of the 7.625% senior notes due June 15, 2020.

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Net loss on disposals of businesses: included a pre-tax loss of $15.7 million ($15.7 million after-tax) for the year ended December 31, 2015, primarily related to the disposal of the Venezuelan operating entity in the International segment. For the year ended December 31, 2014, these pre-tax charges included a gain on the sale of Journalism Online of $11.2 million ($6.9 million after-tax), offset by a loss on the disposal of GRES in the International segment of $0.8 million ($0.5 million after-tax).

Loss on bankruptcy of subsidiary: included a pre-tax loss of $16.4 million ($14.2 million after-tax) for the year ended December 31, 2014 as a result of the bankruptcy liquidation of RRDA, a subsidiary of RR Donnelley.

Gain on bargain purchase: acquisition of Esselte resulted in a pre-tax gain of $9.5 million ($9.5 million after-tax) for the year ended December 31, 2014.

Venezuela currency remeasurement: currency remeasurement in Venezuela and the related impact of the devaluation resulted in a pre-tax loss of $30.3 million ($27.5 million after-tax) for the year ended December 31, 2015, of which $10.5 million was included in loss attributable to noncontrolling interests.For the year ended December 31, 2014, currency remeasurement in Venezuela resulted in a pre-tax loss, net of foreign exchange gains, of $18.4 million ($13.8 million after-tax), of which $5.6 million was included in loss attributable to noncontrolling interests.

Net loss on investments: included a pre-tax gain of $3.9 million ($2.4 million after-tax) resulting from the sale of one of the Company’s affordable housing investments, a pre-tax loss of $2.8 million ($2.8 million after-tax) resulting from the impairment of the Company’s investment in the Brazilian operations of Courier and a pretax loss of $1.3 million ($1.3 million after-tax) for the impairment of an equity investment during the year ended December 31, 2015.  The year ended December 31, 2014 included a pre-tax gain of $3.0 million ($1.9 million after-tax) resulting from the sale of the Company’s shares of a previously impaired equity investment offset by a pre-tax loss of $1.3 million ($0.8 million after-tax) from the impairment of an equity investment.

Income tax adjustments: for the year ended December 31, 2015, tax expense of $6.0 million was recorded due to the receipt of an unfavorable court decision relating to payment of prior year taxes in the International segment. For the year ended December 31, 2014, income tax adjustments includes a tax benefit related to the decline in value of an entity, within the Strategic Services segment, of $15.2 million.

Operations: reflected volume declines in the Publishing and Retail Services and Variable Print segments, price pressures and wage and other inflation in the International segment, partially offset by lower incentive compensation expense, the acquisition of Courier, lower depreciation and amortization expense, cost control initiatives resulting from the integration of Consolidated Graphics and Esselte and the reorganization of certain operations, and an increase in volume due to the acquisitions of Consolidated Graphics and Esselte.

OUTLOOK

Vision and Strategy

RR Donnelley works with its customers to create, manage, deliver and optimize their multi-channel communications strategies. The Company has and will continue to develop its creative and design, content management, digital and print production, supply chain management and distribution services to address its customers’ evolving needs.  While the proposed spinoff transactions are expected to enable each company to pursue more tailored strategies, the Company is continuing to pursue its core strategic objectives.  After completion of the proposed spinoff transactions, management expects LSC Communications and Donnelley Financial Solutions to pursue their own, more tailored, strategies and invest according to the unique dynamics of their respective industries. The Company’s remaining business is expected to be better positioned to continue its focus on further developing its industry leading customized multi-channel communications offerings.

The Company’s global platform provides differentiated solutions for its customers through its broad range of complementary communications services, strong logistics capabilities, and its innovative leadership in both conventional print and digital technologies. This platform has enabled RR Donnelley to develop strong customer relationships, and the Company is focused on expanding these relationships to a broader range of its offerings. The Company will invest to expand its capabilities in order to make it easier for customers to manage their full range of communication needs.

Management believes productivity improvement and cost reduction are critical to the Company’s continued competitiveness, and the flexibility of its platform enhances the value the Company delivers to its customers. The Company continues to implement strategic initiatives across all platforms to reduce its overall cost structure and enhance productivity, including restructuring, consolidation, reorganization and integration of operations and streamlining of administrative and support activities.

The Company seeks to deploy its capital using a balanced approach in order to ensure financial flexibility and provide returns to shareholders. Priorities for capital deployment, over time, include principal and interest payments on debt obligations, distributions to shareholders, targeted acquisitions and capital expenditures. The Company believes that a strong financial condition is important to customers focused on establishing or growing long-term relationships. The Company also expects to make targeted acquisitions that extend its capabilities, drive cost savings and reduce future capital spending needs.

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Management uses several key indicators to gauge progress toward achieving these objectives. These indicators include organic sales growth, operating margins, cash flow from operations and capital expenditures. The Company targets long-term net sales growth at or above industry levels, while managing operating margins by achieving productivity improvements that offset the impact of price declines and cost inflation.  Cash flows from operations are targeted to be stable over time, however, cash flows from operations in any given year can be significantly impacted by the timing of non-recurring or infrequent receipts and expenditures, the level of required pension and other postretirement benefits plan contributions and the impact of working capital management efforts.

The Company faces many challenges and risks as a result of competing in highly competitive global markets. Refer to Item 1A, Risk Factors, of Part I of this Annual Report on Form 10-K for further discussion.

2016 Outlook

As discussed in Item 1,Business – Proposed Spinoff Transactions, of Part I of this Annual Report on Form 10-K, the Company expects its proposed spinoff transactions to be effective in October 2016. However, the 2016 outlook below reflects the Company’s current operating and management structure and does not take into account the proposed transactions.

In 2016, the Company expects net sales to increase slightly as compared to 2015 driven by the acquisition of Courier, as well as organic growth across certain product and service offerings primarily in the Strategic Services and International segments that are expected to more than offset the anticipated continuing volume declines and price pressures in the Publishing and Retail Services segment and slight volume declines in the Variable Print segment. The sales growth in the International segment is expected to be partially offset by the negative impact of fluctuations in foreign exchange rates. The highly competitive market conditions and unused industry capacity will continue to put price pressure on both transactional work and contract renewals across all segments. The Company’s outlook assumes that the U.S. economy will grow modestly in 2016, with a decline in growth expected in developing countries. The Company will continue to leverage its customer relationships in order to provide a larger share of its customers’ communications needs. In addition, the Company expects to continue cost control and productivity initiatives, including selected facility consolidations.

The Company initiated several restructuring actions in 2015 and 2014 to further reduce the Company’s overall cost structure. These restructuring actions included the closures of four manufacturing facilities during 2015 as well as the reorganization of certain operations. These and future cost reduction actions are expected to have a positive impact on operating earnings in 2016 and in future years. In addition, the Company expects to identify other cost reduction opportunities and possibly take further actions in 2016, which may result in significant additional restructuring charges. These restructuring actions will be funded by cash generated from operations and cash on hand or, if necessary, by utilizing the Company’s credit facilities.

Cash flows from operations in 2016 are expected to benefit from increased operating cash flow from the acquisition of Courier and improved profitability driven by organic net sales growth. The expected increases in cash flows are expected to be more than offset by payments for spinoff-related transaction and transition expenses. The Company expects capital expenditures to be in the range of $200 million to $225 million in 2016.

The Company’s pension and other postretirement benefits plans were underfunded by $510.7 million and $169.6million, respectively, as of December 31, 2015, as reported on the Company’s Consolidated Balance Sheets and further described in Note 11, Retirement Plans, to the Consolidated Financial Statements. Governmental regulations for measuring pension plan funded status differ from those required under accounting principles generally accepted in the United States of America (“GAAP”) for financial statement preparation. Based on the plans’ regulatory funded status, required contributions in 2016 under all pension and other postretirement benefits plans are expected to be approximately $25.0 million to $30.0 million, which is consistent with contributions made in 2015 of $25.6 million.

During the fourth quarter of 2015, the Company communicated to retirees the option to receive a lump-sum pension payment or annuity with payments beginning in the second quarter of 2016. To the extent eligible individuals elect the option to receive a lump-sum pension payment or annuity, the Company’s pension obligations will be reduced. The Company expects to record a significant non-cash settlement charge in 2016 in connection with the settlement payments. The amount of this charge will depend on how many individuals elect the option to receive a lump-sum pension payment or annuity, as well as the discount rate and asset values on the settlement date. The Company estimates the settlement charge to be approximately $90.0 million to $140.0 million assuming 20% to 30% of individuals elect the option to receive a lump sum pension payment or annuity.

In connection with the proposed spinoff transactions, the Company expects to incur a significant amount of spinoff-related transaction and transition expenses in 2016, including information technology, consulting, real estate, finance and other incremental expenses. Refer to Item 1,Business – Proposed Spinoff Transactions, of Part I of this Annual Report on Form 10-K for further details regarding the proposed spinoff transactions.

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Significant Accounting Policies and Critical Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s most critical accounting policies are those that are most important to the portrayal of its financial condition and results of operations, and which require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The Company has identified the following as its most critical accounting policies and judgments. Although management believes that its estimates and assumptions are reasonable, they are based upon information available when they are made, and therefore, actual results may differ from these estimates under different assumptions or conditions.

Revenue Recognition

The Company recognizes revenue for the majority of its products upon the transfer of title and risk of ownership, which is generally upon shipment to the customer. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. Revenue from services is recognized as services are performed. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to the Consolidated Financial Statements for further discussion.

Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for third-party shipping and handling costs as well as certain postage costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross. In the Company’s Global Turnkey Solutions operations, each contract is evaluated using various criteria to determine if revenue for components and other materials should be recognized on a gross or net basis. In general, these revenues are recognized on a gross basis if the Company has control over selecting vendors and pricing, is the primary obligor in the arrangement and bears credit risk and the risk of loss for inventory in its possession. Revenue from contracts that do not meet these criteria is recognized on a net basis. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis. As a result, the Company’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper.

Goodwill and Other Long-Lived Assets

The Company’s methodology for allocating the purchase price of acquisitions is based on established valuation techniques that reflect the consideration of a number of factors, including valuations performed by third-party appraisers when appropriate. Goodwill is measured as the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. Based on its current organization structure, the Company has identified nineteen reporting units for which cash flows are determinable and to which goodwill may be allocated. Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative excess fair value of each reporting unit.

The Company performs its goodwill impairment tests annually 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. The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit.  As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on these interim assessments, the Company recognized non-cash charges of $13.7 million and $4.3 million during the third quarter of 2015 for the impairment of goodwill in the Europe and Latin America reporting units, respectively, both of which are within the International segment. The goodwill impairment charge in the Europe reporting unit was due to the announced reorganization of certain operations which resulted in a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to the expectations as of the October 31, 2014 annual goodwill impairment test. As of December 31, 2015, the Europe and Latin America reporting units had no remaining goodwill. Based on the interim assessments, management concluded that other than the goodwill impairments recognized in the Europe and Latin America reporting units, 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.

As of October 31, 2015, eleven reporting units had goodwill. The magazines, catalogs and retail inserts, directories, forms, sourcing, business process outsourcing, Europe, Latin America and Canada reporting units had no goodwill as of October 31, 2015. The reporting units with goodwill were reviewed for impairment using either a qualitative or quantitative assessment.

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Qualitative Assessment for Impairment

The Company performed a qualitative assessment for the Asia reporting unit to determine whether it was more likely than not that the fair value of the reporting unit was less than its carrying value. In performing this analysis, the Company considered various factors, including the effect of market or industry changes and the reporting unit’s actual results compared to projected results. In addition, management considered how other key assumptions used in the October 31, 2014 annual goodwill impairment test could be impacted by changes in market conditions and economic events.

As part of the qualitative review of impairment, management analyzed the potential changes in fair value of the Asia reporting unit based on its operating results for the ten months ended October 31, 2015 compared to expected results. As of October 31, 2014, the estimated fair value of the Asia reporting unit exceeded its carrying value by approximately 80.2%, according to a valuation performed by a third-party appraisal firm.

Based on its qualitative assessment, management concluded that as of October 31, 2015, it was more likely than not that the fair values of the Asia reporting unit was greater than its carrying values. The goodwill balance of the Asia reporting unit was $57.3 million as of October 31, 2015.

Quantitative Assessment for Impairment

For the remaining ten reporting units with goodwill, a two-step method was used for determining goodwill impairment. In the first step (“Step One”), the Company compared the estimated fair value of each reporting unit to its carrying value, including goodwill. If the carrying value of a reporting unit exceeded the estimated fair value, the second step (“Step Two”) is completed to determine the amount of the impairment charge. Step Two requires the allocation of the estimated fair value of the reporting unit to the assets, including any unrecognized intangible assets, and liabilities in a hypothetical purchase price allocation. Any remaining unallocated fair value represents the implied fair value of goodwill, which is compared to the corresponding carrying value of goodwill to compute the goodwill impairment charge. The results of Step One of the goodwill impairment test as of October 31, 2015, indicated that the estimated fair values for all ten reporting units exceeded their respective carrying values. Therefore, the Company did not perform Step Two for any of the reporting units.

As part of its impairment test for these reporting units, the Company engaged a third-party appraisal firm to assist in the Company’s determination of the estimated fair values. This determination included estimating the fair value of each reporting unit using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows, discount rates and the allocation of shared or corporate items. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The Company weighted both the income and market approach equally to estimate the concluded fair value of each reporting unit.

The determination of fair value in Step One and the allocation of that value to individual assets and liabilities in Step Two, if necessary, requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, restructuring charges and capital expenditures. The allocation of fair value under Step Two requires several analyses to determine the fair value of assets and liabilities including, among others, trade names, customer relationships, and property, plant and equipment.

As a result of the 2015 annual goodwill impairment test, the Company did not recognize any goodwill impairment charges as the estimated fair values of all reporting units exceeded their respective carrying values.

Goodwill Impairment Assumptions

Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of the goodwill impairment charge, or both. Future declines in the overall market value of the Company’s equity and debt securities may also result in a conclusion that the fair value of one or more reporting units has declined below its carrying value.

One measure of the sensitivity of the amount of goodwill impairment charges to key assumptions is the amount by which each reporting unit “passed” (fair value exceeds the carrying value) or “failed” (the carrying value exceeds fair value) Step One of the goodwill impairment test. Ten reporting units passed Step One, with fair values that exceeded the carrying values by between 17% and 297% of their respective estimated fair values. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing Step One.

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Generally, changes in estimates of expected future cash flows would have a similar effect on the estimated fair value of the reporting unit. That is, a 1.0% decrease in estimated annual future cash flows would decrease the estimated fair value of the reporting unit by approximately 1.0%. The estimated long-term net sales growth rate can have a significant impact on the estimated future cash flows, and therefore, the fair value of each reporting unit. A 1.0% decrease in the long-term net sales growth rate would have resulted in no reporting units failing Step One of the goodwill impairment test. Of the other key assumptions that impact the estimated fair values, most reporting units have the greatest sensitivity to changes in the estimated discount rate. The estimated discount rates for the reporting units with operations primarily located in the U.S. ranged from 8.0% to 8.5% as of October 31, 2015. The estimated discount rate for a reporting unit with operations primarily in foreign locations was 11.0%. A 1.0% increase in estimated discount rates would have resulted in no reporting units failing Step One. The Company believes that its estimates of future cash flows and discount rates are reasonable, but future changes in the underlying assumptions could differ due to the inherent uncertainty in making such estimates. Additionally, further price deterioration or lower volume could have a significant impact on the fair values of the reporting units.

Other Long-Lived Assets

The Company evaluates the recoverability of other long-lived assets, including property, plant and equipment and certain identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable.  The Company performs impairment tests of indefinite-lived intangible assets on an annual basis or more frequently in certain circumstances. Factors which could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends. When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the carrying value of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying value over its fair value. During the year ended December 31, 2015, the Company recognized non-cash impairment charges of $11.9 million, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively.  The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships. In addition, the Company recognized non-cash impairment charges of $10.3 million during the year ended December 31, 2015, related to machinery and equipment, buildings and land, primarily as a result of restructuring activities.

Pension and Other Postretirement Benefits Plans

The Company records annual income and expense amounts relating to its pension and other postretirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return, turnover rates, health care cost trend rates and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheet, but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. The discount rates for pension benefits at December 31, 2015 and 2014 were 4.5% and 4.1%, respectively. The discount rates for other postretirement benefits plans at December 31, 2015 and 2014 were 4.2% and 3.9%, respectively.

As of December 31, 2015, the Company changed the method used to estimate the interest cost components of net pension and other postretirement benefits plan expense for its defined benefit pension and other postretirement benefit plans. Historically, the interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. The Company has elected to use a full yield curve approach in the estimation of these interest components of net pension and other postretirement benefits plan expense by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest costs. This change does not affect the measurement and calculation of the Company’s total benefit obligations. The Company has accounted for this change as a change in estimate and accordingly has accounted for it prospectively starting in the first quarter of 2016. The reduction in the interest cost components of net pension and other postretirement benefits plan expense for 2016 associated with this change in estimate is approximately $34.0 million.

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A one-percentage point change in the discount rates at December 31, 2015 would have the following effects on the accumulated benefit obligation and projected benefit obligation:

Pension Plans

	1.0% Increase			1.0% Decrease
	(in millions)
Accumulated benefit obligation	$	(468.8	)	$	573.9
Projected benefit obligation		(471.8	)		577.3

Other Postretirement Benefits Plans

	1.0% Increase			1.0% Decrease
	(in millions)
Accumulated benefit obligation	$	(36.1	)	$	43.4

The Company’s U.S. pension plans are frozen and the Company has transitioned to a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to further reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. Over time, the target asset allocation percentage for the pension plan is expected to decrease for equity and other “return seeking” investments and increase for fixed income and other “hedging” investments. The assumed long-term rate of return for plan assets, which is determined annually, is likely to decrease as the asset allocation shifts over time.

The expected long-term rate of return for plan assets is based upon many factors including expected asset allocations, historical asset returns, current and expected future market conditions and risk. In addition, the Company considered the impact of the current interest rate environment on the expected long-term rate of return for certain asset classes, particularly fixed income. The target asset allocation percentage for the primary U.S. pension plan was approximately 60.0% for return seeking investments and approximately 40.0% for hedging investments. The expected long-term rate of return on plan assets assumption used to calculate net pension and other postretirement benefits plan expense in 2015 was 7.50% and 7.25%, respectively, for the Company’s major U.S. pension and other postretirement benefits plans. The expected long-term rate of return on plan assets assumption that will be used to calculate net pension and other postretirement benefits plan expense in 2016 is 7.25% for both of the Company’s major U.S. pension and other postretirement benefits plans.

A 0.25% change in the expected long-term rate of return on plan assets at December 31, 2015 would have the following effects on 2015 and 2016 pension and other postretirement benefit plan (income)/expense:

	0.25% Increase			0.25% Decrease
	(in millions)
2015
U.S. pension plans	$	(7.5	)	$	7.5
Other postretirement benefit plans		(0.5	)		0.5
2016
U.S. pension plans	$	(7.7	)	$	7.7
Other postretirement benefit plans		(0.5	)		0.5

The Company also maintains several pension plans in international locations. The expected returns on plan assets and discount rates for those plans are determined based on each plan’s investment approach, local interest rates and plan participant profiles.

28

Accounting for Income Taxes

Significant judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities and any valuation allowance recorded against deferred tax assets. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various U.S. and foreign tax authorities. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s historical financial statements.

The Company has recorded deferred tax assets related to future deductible items, including domestic and foreign tax loss and credit carryforwards. The Company evaluates these deferred tax assets by tax jurisdiction. The utilization of these tax assets is limited by the amount of taxable income expected to be generated within the allowable carryforward period and other factors. Accordingly, management has provided a valuation allowance to reduce certain of these deferred tax assets when management has concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized. If actual results differ from these estimates, or the estimates are adjusted in future periods, adjustments to the valuation allowance might need to be recorded. As of December 31, 2015 and 2014, valuation allowances of $233.5 million and $257.8 million, respectively, were recorded in the Company’s Consolidated Balance Sheets.

Deferred U.S. income taxes and foreign taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company has recognized deferred tax liabilities of $4.3 million as of December 31, 2015 related to local taxes on certain foreign earnings that are not considered to be permanently reinvested. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company’s 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 tax liabilities.

Commitments and Contingencies

The Company is subject to lawsuits, investigations and other claims related to environmental, employment, commercial and other matters, as well as preference claims related to amounts received from customers and others prior to their seeking bankruptcy protection. Periodically, the Company reviews the status of each significant matter and assesses potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the related liability is estimable, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based on the best information available at the time. As additional information becomes available, the Company reassesses the related potential liability and may revise its estimates.

With respect to claims made under the Company’s third-party insurance for workers’ compensation, automobile and general liability, the Company is responsible for the payment of claims below and above insured limits, and consulting actuaries are utilized to assist the Company in estimating the obligation associated with any such incurred losses, which are recorded in accrued and other non-current liabilities. Historical loss development factors for both the Company and the industry are utilized to project the future development of such incurred losses, and these amounts are adjusted based upon actual claims experience and settlements. If actual experience of claims development is significantly different from these estimates, an adjustment in future periods may be required. Expected recoveries of such losses are recorded in other current and other non-current assets.

Restructuring

The Company records restructuring charges when liabilities are incurred as part of a plan approved by management with the appropriate level of authority for the elimination of duplicative functions, the closure of facilities, or the exit of a line of business, generally in order to reduce the Company’s overall cost structure. Total restructuring charges were $61.9 million for the year ended December 31, 2015. The restructuring liabilities might change in future periods based on several factors that could differ from original estimates and assumptions. These include, but are not limited to: contract settlements on terms different than originally expected; ability to sublease properties based on market conditions at rates or on timelines different than originally estimated; or changes to original plans as a result of acquisitions. Such changes might result in reversals of or additions to restructuring charges that could affect amounts reported in the Consolidated Statements of Operations of future periods.

29

Accounts Receivable

The Company maintains an allowance for doubtful accounts receivable, which is reviewed for estimated losses resulting from the inability of its customers to make required payments for products and services. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s past collection experience. The allowance for doubtful accounts receivable was $41.5 million and $44.3 million at December 31, 2015 and 2014, respectively. The Company’s estimates of the recoverability of accounts receivable could change, and additional changes to the allowance could be necessary in the future, if any major customer’s creditworthiness deteriorates or actual defaults are higher than the Company’s historical experience.

Share-Based Compensation

The amount of expense recognized for share-based awards is determined by the Company’s estimates of several factors, including expected performance compared to target for performance share units, future forfeitures of awards, expected volatility of the Company’s stock and the average life of options prior to expiration. The total compensation expense related to all share-based compensation plans was $17.3 million for the year ended December 31, 2015. See Note 17, Stock and Incentive Programs for Employees, to the Consolidated Financial Statements for further discussion.

Off-Balance Sheet Arrangements

Other than non-cancelable operating lease commitments, the Company does not have off-balance sheet arrangements, financings or special purpose entities.

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 Consolidated Financial Statements and related notes that begin on page F-1.

RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2015 AS COMPARED TO THE YEAR ENDED DECEMBER 31, 2014

The following table shows the results of operations for the years ended December 31, 2015 and 2014, which reflects the results of acquired businesses from the relevant acquisition dates:

	2015		2014		$ Change			% Change
	(in millions, except percentages)
Products net sales	$	9,323.6	$	9,715.2	$	(391.6	)		(4.0	%)
Services net sales		1,933.2		1,888.2		45.0			2.4	%
Total net sales		11,256.8		11,603.4		(346.6	)		(3.0	%)
Products cost of sales (exclusive of depreciation and amortization)		7,282.3		7,581.6		(299.3	)		(3.9	%)
Services cost of sales (exclusive of depreciation and amortization)		1,510.5		1,471.2		39.3			2.7	%
Total cost of sales		8,792.8		9,052.8		(260.0	)		(2.9	%)
Products gross profit		2,041.3		2,133.6		(92.3	)		(4.3	%)
Services gross profit		422.7		417.0		5.7			1.4	%
Total gross profit		2,464.0		2,550.6		(86.6	)		(3.4	%)
Selling, general and administrative expenses (exclusive of depreciation    and amortization)		1,300.0		1,427.0		(127.0	)		(8.9	%)
Restructuring, impairment and other charges-net		122.6		133.7		(11.1	)		(8.3	%)
Depreciation and amortization		454.0		474.0		(20.0	)		(4.2	%)
Income from operations	$	587.4	$	515.9	$	71.5			13.9	%

Consolidated

Net sales of products for the year ended December 31, 2015 decreased $391.6 million, or 4.0%, to $9,323.6 million versus the same period in 2014, including a $215.5 million, or 2.2% decrease due to changes in foreign exchange rates. Net sales of products decreased due to lower volume in the Publishing and Retail Services and Variable Print segments, an $85.2 million, or 0.9%, decrease due to the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity, an $80.0 million, or 0.8%, decrease due to a decline in pass-through paper sales and price pressures, partially offset by the acquisitions of Courier, Esselte and Consolidated Graphics.

30

Net sales from services for the year ended December 31, 2015 increased $45.0 million, or 2.4%, to $1,933.2 million versus the same period in 2014, including a $35.5 million, or 1.9%, decrease due to changes in foreign exchange rates. The increase in net sales from services was primarily due to higher volume in the Strategic Services segment, primarily driven by the logistics reporting unit.

Products cost of sales decreased $299.3 million, but increased 0.1% as a percentage of net sales of products for the year ended December 31, 2015 versus the same period in the prior year. Products cost of sales decreased primarily due to lower volume in the Publishing and Retail Services and Variable Print segments, the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity, lower incentive compensation expense and cost control initiatives, partially offset by the acquisitions of Courier, Esselte and Consolidated Graphics and wage and other inflation in the International segment.

Services cost of sales increased $39.3 million, or 0.2% as a percentage of net sales from services for the year ended December 31, 2015 versus the same period in the prior year. Services cost of sales increased primarily due to higher volume in the Strategic Services segment driven by the logistics reporting unit and increased transportation costs, partially offset by cost control initiatives.

Products gross profit decreased $92.3 million to $2,041.3 million for the year ended December 31, 2015 versus the same period in 2014 primarily due to volume declines in the Publishing and Retail Services and Variable Print segments, the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity, price pressures and wage and other inflation in the International segment, partially offset by the acquisitions of Courier, Consolidated Graphics and Esselte and cost control initiatives. Products gross margin decreased slightly from 22.0% to 21.9%, reflecting price pressures and wage and other inflation in the International segment.

Services gross profit increased $5.7 million to $422.7 million for the year ended December 31, 2015 versus the same period in 2014 primarily as a result of higher volume in the logistics reporting unit within the Strategic Services segment, partially offset by increased transportation costs. Services gross margin decreased from 22.1% to 21.9%, reflecting increased costs of transportation.

Selling, general and administrative expenses decreased $127.0 million to $1,300.0 million, or 0.8% as a percentage of net sales, for the year ended December 31, 2015 versus the same period in 2014 due to the favorable impact of the prior year pension settlement charges of $95.7 million, lower incentive compensation expense and cost control initiatives, partially offset by the acquisitions of Courier, Consolidated Graphics and Esselte, $13.6 million of spinoff-related transaction expenses and a $5.7 million increase in acquisition-related expenses.  

For the year ended December 31, 2015, the Company recorded net restructuring, impairment and other charges of $122.6 million compared to $133.7 million in the same period in 2014. In 2015, these charges included $44.3 million of employee termination costs for 1,939 employees, of whom 1,719 were terminated as of December 31, 2015. These charges were primarily the result of two facility closures in the International segment, one facility closure in the Variable Print segment, one facility closure in the Publishing and Retail Services segment and the reorganization of certain operations. The Company also recorded $24.6 million of other charges, including integration charges of $19.1 million for payments made to certain Courier employees upon the termination of Courier’s executive severance plan immediately prior to the acquisition during the second quarter of 2015. The Company also incurred lease termination and other restructuring charges of $17.6 million for the year ended December 31, 2015. Additionally, the Company recorded non-cash charges of $13.7 million and $4.3 million during the year ended December 31, 2015 for the impairment of goodwill in the Europe and Latin America reporting units respectively, both of which are within the International segment. The goodwill impairment charge in the Europe reporting unit was due to the announced reorganization of certain operations which resulted in a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to the expectations as of the October 31, 2014 annual goodwill impairment test. The Company also recorded non-cash charges of $11.9 million for the impairment of intangible assets, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively, for the year ended December 31, 2015. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships. In addition, the Company recorded $6.2 million of impairment charges for other long-lived assets, primarily related to buildings and machinery and equipment associated with facility closures.

31

For the year ended December 31, 2014, the Company recorded net restructuring, impairment and other charges of $133.7 million compared to $133.5 million in the same period in 2013. In 2014, these charges included $35.5 million of other charges as a result of its decision to withdraw from certain multi-employer pension plans serving facilities that are currently operating. Additionally, the Company incurred $30.3 million of employee termination costs for 654 employees, substantially all of whom were terminated as of December 31, 2015. These charges were the result of the integration of Consolidated Graphics, including the closure of seven Consolidated Graphics facilities as well as one additional facility closure within the Variable Print segment, one facility closure in the Publishing and Retail Services segment and the reorganization of certain operations. The Company also recorded lease termination and other restructuring charges of $20.8 million for the year ended December 31, 2014, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures. In addition, the Company recorded $18.1 million of non-cash charges for the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit within the Publishing and Retail Services segment. The goodwill impairment charge resulted from reductions in the estimated fair value of the reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to expectations as of the last annual goodwill impairment test. The lower expectations were due to an expected increase in volume declines and increasing price pressures resulting from declining demand, primarily in catalogs and magazines.  Revenue and income from operations in the magazines, catalogs and retail inserts reporting unit for the year ended December 31, 2014 were lower than previous expectations due to volume declines and price pressures. The Company also recorded non-cash charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively, for the year ended December 31, 2014. Additionally, the Company recorded $1.4 million of impairment charges related to acquired tradenames in the commercial and digital print reporting unit within the Variable Print segment and $14.0 million of impairment charges primarily related to buildings, machinery and equipment as a result of facility closures for the year ended December 31, 2014.  

Depreciation and amortization decreased $20.0 million to $454.0 million for the year ended December 31, 2015 compared to the same period in 2014 due to the impact of changes in foreign exchange rates and lower capital spending in recent years compared to historical levels, partially offset by increases due to the acquisitions of Courier, Consolidated Graphics and Esselte. Depreciation and amortization included $78.5 million and $78.1 million of amortization of other intangible assets related to customer relationships, trade names, trademarks, licenses and agreements for the year ended December 31, 2015 and 2014, respectively.

Income from operations for the year ended December 31, 2015 was $587.4 million, an increase of $71.5 million, or 13.9%, compared to the year ended December 31, 2014. The increase was due to the favorable impact of the prior year pension settlement charges of $95.7 million, lower incentive compensation expense, the acquisition of Courier, lower depreciation and amortization expense, lower restructuring, impairment and other charges, cost control initiatives resulting from the integration of Consolidated Graphics and Esselte and the reorganization of certain operations, and an increase in volume due to the acquisitions of Consolidated Graphics and Esselte, partially offset by volume declines in the Publishing and Retail Services and Variable Print segments, price pressures and wage and other inflation in the International segment.

	2015		2014		$ Change			% Change
	(in millions, except percentages)
Interest expense-net	$	276.0	$	282.1	$	(6.1	)		(2.2	%)
Investment and other expense-net		43.6		9.6		34.0			354.2	%
Loss on debt extinguishment		-		77.1		(77.1	)		(100.0	%)

Net interest expense decreased by $6.1 million for the year ended December 31, 2015 versus the same period in 2014, primarily due to a decrease in average outstanding debt.

Net investment and other expense for the year ended December 31, 2015 and 2014 was $43.6 million and $9.6 million, respectively.  For the year ended December 31, 2015, the Company recorded a loss of $30.3 million related to the currency remeasurement in Venezuela and the related impact of the devaluation and a $14.7 million net loss on the sale of its Venezuelan operating entity. For the year ended December 31, 2014, the Company recorded a loss of $18.4 million, net of foreign exchange gains, related to the Venezuelan currency remeasurement, and a loss on the bankruptcy liquidation of RRDA of $16.4 million. This was partially offset by a gain on the sale of Journalism Online of $11.2 million, a $9.5 million bargain purchase gain related to the Esselte acquisition and a gain of $3.0 million resulting from the sale of the Company’s shares of a previously impaired equity investment. 

	2015			2014			$ Change		% Change
	(in millions, except percentages)
Income before income taxes	$	267.8		$	147.1		$	120.7		82.1	%
Income tax expense		129.4			26.3			103.1		392.0	%
Effective income tax rate		48.3	%		17.9	%

32

The effective income tax rate for the year ended December 31, 2015 was 48.3% compared to 17.9% in the same period in 2014. Income tax expense for the period ended December 31, 2015 reflects a lower tax benefit than the statutory rate on the Venezuelan currency devaluation, the impact of the non-deductible goodwill impairment charges, charges for unrecognized tax positions of $6.0 million due to the receipt of an unfavorable court decision relating to payment of prior year taxes in the International segment and the loss on the sale of the Company’s Venezuelan operating entity. The tax rate in 2014 was impacted by a $15.2 million tax benefit related to the decline in value of an entity within the Strategic Services segment.

The loss attributable to noncontrolling interests was $12.7 million for the year ended December 31, 2015 versus income of $3.4 million for the year ended December 31, 2014. For the year ended December 31, 2015 and 2014, the Venezuelan currency remeasurement, net of foreign exchange gains, resulted in losses attributable to noncontrolling interests of $10.5 million and $5.6 million, respectively. The impact of the remeasurement was more than offset for the year ended December 31, 2014 by the Company’s operating earnings in Venezuela.  

Net earnings attributable to RR Donnelley common shareholders for the year ended December 31, 2015 was $151.1 million, or $0.73 per diluted share, compared to $117.4 million, or $0.59 per diluted share, for the year ended December 31, 2014. In addition to the factors described above, the per share results reflect an increase in weighted average diluted shares outstanding of 6.8 million, primarily as a result of the acquisitions of Consolidated Graphics, Esselte and Courier.

Information by Segment

The following tables summarize net sales, income (loss) from operations and certain items impacting comparability within each of the operating segments and Corporate. The descriptions of the reporting units generally 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.

Publishing and Retail Services

	Year Ended
	December 31,
	2015			2014
	(in millions, except percentages)
Net sales	$	2,521.7		$	2,632.3
Income from operations		77.3			86.1
Operating margin		3.1	%		3.3	%
Restructuring and impairment and other charges-net		31.5			50.7
Purchase accounting inventory adjustment		8.5			—

		Net Sales for the Year Ended
		December 31,
Reporting unit		2015		2014		$ Change			% Change
	(in millions, except percentages)
Magazines, catalogs and retail inserts		$	1,439.3	$	1,646.0	$	(206.7	)		(12.6	%)
Books			942.1		841.9		100.2			11.9	%
Directories			140.3		144.4		(4.1	)		(2.8	%)
Total Publishing & Retail Services		$	2,521.7	$	2,632.3	$	(110.6	)		(4.2	%)

Net sales for the Publishing and Retail Services segment for the year ended December 31, 2015 were $2,521.7 million, a decrease of $110.6 million, or 4.2%, compared to 2014. Net sales decreased due to lower volume in magazines, catalogs and retail inserts, an $83.2 million decrease in pass through paper sales, lower volume in consumer and educational books and price pressures, partially offset by the acquisition of Courier. An analysis of net sales by reporting unit follows:

· Magazines, catalogs and retail inserts: Sales decreased due to reduced volume, decreases in pass-through paper sales and price pressures.

· Books: Sales increased as a result of the acquisition of Courier, partially offset by reduced volume in educational and consumer books.

· Directories: Sales decreased primarily as a result of a decline in pass-through paper sales and lower volume resulting from electronic substitution.

33

Publishing and Retail Services segment income from operations decreased $8.8 million for the year ended December 31, 2015 due to volume declines and price pressures primarily in magazines, catalogs and retail inserts, partially offset by lower restructuring, impairment and other charges, the acquisition of Courier and lower incentive compensation expense. Operating margins decreased from 3.3% for the year ended December 31, 2014 to 3.1% for the year ended December 31, 2015.  The purchase accounting inventory adjustment impacted margins unfavorably by 0.3 percentage points.  Operating margins also decreased due to price pressures and unfavorable mix, partially offset by lower restructuring, impairment and other charges which favorably impacted margins by 0.7 percentage points.

Variable Print

	Year Ended
	December 31,
	2015			2014
Net sales	$	3,762.4		$	3,767.9
Income from operations		250.7			240.8
Operating margin		6.7	%		6.4	%
Restructuring and impairment and other charges-net		21.4			44.8
Purchase accounting inventory adjustment		—			14.3
Acquisition-related expenses		—			0.1

	Net Sales for the Year Ended
	2015
Reporting unit	2015		2014		$ Change			% Change
	(in millions, except percentages)
Commercial and digital print (a)	$	1,665.7	$	1,696.0	$	(30.3	)		(1.8	%)
Office products		560.2		496.3		63.9			12.9	%
Direct mail (a)		516.3		519.9		(3.6	)		(0.7	%)
Labels		428.0		436.4		(8.4	)		(1.9	%)
Statement printing		392.9		390.4		2.5			0.6	%
Forms		199.3		228.9		(29.6	)		(12.9	%)
Total Variable Print	$	3,762.4	$	3,767.9	$	(5.5	)		(0.1	%)

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

Net sales for the Variable Print segment for the year ended December 31, 2015 were $3,762.4 million, a decrease of $5.5 million, or 0.1%, compared to 2014, including a $13.3 million, or 0.4% decrease due to changes in foreign exchange rates. In addition, net sales decreased due to lower transactional commercial print and forms volume, partially offset by the acquisitions of Consolidated Graphics and Esselte and higher volume in office products. An analysis of net sales by reporting unit follows:

· Commercial and digital print: Sales decreased primarily as a result of lower transactional commercial print and print and fulfillment volume and the unfavorable impact of U.S election cycles on current year spending, partially offset by the acquisition of Consolidated Graphics and higher volume in in-store marketing materials.

· Office products: Sales increased as a result of the acquisition of Esselte and higher volume in filing and binder products primarily related to new customers, partially offset by changes in foreign exchange rates and price pressures.

· Direct mail: Sales decreased as a result of lower pass-through postage sales, partially offset by higher volume and an increase in pass-through paper sales.

· Labels: Sales decreased due to lower volume and price pressures.

· Statement printing: Sales increased slightly primarily as a result of higher pass-through postage sales and an increase in volume, partially offset by price pressures.

· Forms: Sales decreased due to lower volume.

34

Variable Print segment income from operations increased $9.9 million for the year ended December 31, 2015 mainly due to lower restructuring, impairment and other charges, the impact of the prior year purchase accounting inventory adjustment, cost control initiatives resulting from the integration of Consolidated Graphics and Esselte, favorable mix within labels and direct mail, lower incentive compensation expense and higher volume resulting from the acquisitions of Esselte and Consolidated Graphics, partially offset by lower volume in transactional commercial print and price pressures. Operating margins increased from 6.4% for the year ended December 31, 2014 to 6.7% for the year ended December 31, 2015.  Margins improved 0.6 percentage points due to lower restructuring, impairment and other charges and 0.4 percentage points due to the favorable impact of the prior year purchase accounting inventory adjustment.  Additionally, operating margins reflected price pressures, partially offset by cost control initiatives resulting from the integration of Consolidated Graphics and Esselte.

Strategic Services

	Year Ended
	December 31,
	2015			2014
Net sales	$	2,677.9		$	2,607.5
Income from operations		257.5			257.4
Operating margin		9.6	%		9.9	%
Restructuring and impairment and other charges-net		13.1			11.6
Purchase accounting inventory adjustment		2.3			—

	Net Sales for the Year Ended
	Year Ended
Reporting unit	2015		2014		$ Change			% Change
	(in millions, except percentages)
Logistics	$	1,257.1	$	1,193.3	$	63.8			5.3	%
Financial		990.7		1,014.5		(23.8	)		(2.3	%)
Sourcing		233.6		214.9		18.7			8.7	%
Digital and creative solutions		196.5		184.8		11.7			6.3	%
Total Strategic Services	$	2,677.9	$	2,607.5	$	70.4			2.7	%

Net sales for the Strategic Services segment for the year ended December 31, 2015 were $2,677.9 million, an increase of $70.4 million, or 2.7%, compared to the year ended December 31, 2014, including a $15.0 million, or 0.6%, decrease due to changes in foreign exchange rates. Net sales increased primarily due to higher volume in logistics, the acquisition of Courier, and an increase in volume in pass-through postage sales, sourcing and translation services, partially offset by a decrease in fuel surcharges and reduced capital markets transactions activity.An analysis of net sales by reporting unit follows:

· Logistics: Sales increased primarily due to higher volume in freight brokerage services, pass-through postage sales and international mail services, partially offset by a decrease in fuel surcharges and lower volume in print logistics.

· Financial: Sales decreased due to a reduction in capital markets transactions activity, changes in foreign exchange rates and price pressures in investment management products, partially offset by higher translation services.

· Sourcing: Sales increased primarily due to higher volume in variable print, forms and commercial print-management for healthcare customers.

· Digital and creative solutions: Sales increased primarily due to the acquisition of Courier, partially offset by the bankruptcy of two customers and lower volume in prepress and photo services.

Strategic Services segment income from operations increased $0.1 million for the year ended December 31, 2015 mainly due to higher volume in logistics and cost control initiatives, partially offset by increased costs of transportation and unfavorable revenue mix. Operating margins decreased from 9.9% to 9.6% of which 0.1 percentage points were due to higher restructuring, impairment and other charges. Operating margins were also impacted by increased costs of transportation and unfavorable revenue mix.

35

International

	Year Ended
	December 31,
	2015			2014
Net sales	$	2,294.8		$	2,595.7
Income from operations		71.4			106.7
Operating margin		3.1	%		4.1	%
Restructuring and impairment and other charges-net		52.2			22.3
Acquisition related expenses		—			0.4

	Net Sales for the Year Ended
	December 31,
Reporting unit	2015		2014		$ Change			% Change
	(in millions, except percentages)
Asia	$	737.5	$	743.7	$	(6.2	)		(0.8	%)
Business process outsourcing		433.9		467.0		(33.1	)		(7.1	%)
Global Turnkey Solutions		345.8		341.7		4.1			1.2	%
Europe		309.2		383.7		(74.5	)		(19.4	%)
Latin America		271.3		440.6		(169.3	)		(38.4	%)
Canada		197.1		219.0		(21.9	)		(10.0	%)
Total International	$	2,294.8	$	2,595.7	$	(300.9	)		(11.6	%)

Net sales in the International segment for the year ended December 31, 2015 were $2,294.8 million, a decrease of $300.9 million, or 11.6%, compared to the same period in 2014, including a $222.7 million, or 8.8%, decrease due to changes in foreign exchange rates. The net sales decrease was also due to an $85.2 million, or 3.3%, decrease as a result of the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity during the second quarter of 2015, the bankruptcy liquidation of RRDA in the third quarter of 2014, which had net sales of $22.1 million for the year ended December 31, 2014, and lower volume in Europe, partially offset by higher volume in Global Turnkey Solutions, Canada and business process outsourcing. An analysis of net sales by reporting unit follows:

· Asia: Sales decreased due to price pressures and lower volume in labels and book exports, partially offset by higher volume in packaging products.

· Business process outsourcing: Sales decreased due to changes in foreign exchanges rates, lower pass-through print management volume and the sale of GRES in the first quarter of 2014, partially offset by an increase in volume due to new customers and higher outsourcing volume.

· Global Turnkey Solutions: Sales increased due to higher volume primarily related to a new customer, partially offset by changes in foreign exchange rates.

· Europe: Sales decreased primarily due to changes in foreign exchange rates, reduced volume and price pressures.

· Latin America: Sales decreased due to the impact of the Venezuelan currency devaluation and sale of the Company’s Venezuelan operating entity, changes in foreign exchange rates across the region and the 2014 bankruptcy liquidation of RRDA.

· Canada: Sales decreased due to changes in foreign exchange rates, partially offset by higher labels and statement printing volume.

International segment income from operations decreased $35.3 million primarily due to higher restructuring, impairment and other charges and the impact of the currency devaluation in Venezuela and sale of the Company’s Venezuelan operating entity. Wage inflation in Latin America, Asia and business process outsourcing, price pressures in Asia and Europe and changes in foreign exchange rates were offset by lower depreciation and amortization expense, cost control initiatives and lower incentive compensation expense.  Operating margins decreased from 4.1% to 3.1%, of which 1.4 percentage points was due to higher restructuring, impairment and other charges, which was partially offset by cost control initiatives.

36

Corporate

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

	Year Ended
	December 31,
	2015		2014
	(in millions)
Operating expenses	$	69.5	$	175.1
Spinoff-related transaction expenses		13.6		—
Restructuring and impairment charges		4.4		4.3
Acquisition-related expenses		14.3		8.1
Pension settlement charges		—	95.7

Corporate operating expenses in the year ended December 31, 2015 were $69.5 million, a decrease of $105.6 million compared to the same period in 2014. The decrease was driven by the favorable impact of the prior year pension settlement charges, lower incentive compensation expense, a $7.1 million LIFO inventory benefit and lower bad debt and workers’ compensation expense, partially offset by an increase in healthcare costs, spinoff-related transaction expenses and acquisition-related expenses.

RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2014 AS COMPARED TO THE YEAR ENDED DECEMBER 31, 2013

	Income from Operations			Operating Margin			Net Earnings Attributable to RR Donnelley Common Shareholders			Net Earnings Attributable to RR Donnelley Shareholders Per Diluted Share
	(in millions, except margin and per share data)
For the year ended December 31, 2013	$	579.7			5.5	%	$	211.2		$	1.15
2014 restructuring, impairment and other charges--net		(133.7	)		(1.2	%)		(97.0	)		(0.49	)
2013 restructuring, impairment and other charges--net		133.5			1.3	%		88.2			0.48
Acquisition-related expenses		(2.7	)		0.0	%		(1.7	)		—
Pension settlement charges		(95.7	)		(0.8	%)		(58.4	)		(0.29	)
Purchase accounting inventory adjustments		(14.3	)		(0.1	%)		(9.1	)		(0.05	)
Net gain on disposal of businesses		—			—			18.7			0.10
Loss on bankruptcy of subsidiary		—			—			(14.2	)		(0.07	)
Gain on bargain purchase		—			—			9.5			0.05
Venezuela currency remeasurement		—			—			(7.2	)		(0.03	)
Net gain on investments		—			—			4.7			0.03
Loss on debt extinguishment		—			—			4.1			0.04
Income tax adjustments		—			—			(50.5	)		(0.28	)
Operations		49.1			(0.3	%)		19.1			(0.05	)
For the year ended December 31, 2014	$	515.9			4.4	%	$	117.4		$	0.59

2014 restructuring, impairment and other charges - net: included $35.5 million for other estimated charges related to the decision to withdraw from certain multi-employer pension plans serving facilities that are currently operating; $30.3 million for employee termination costs; $20.8 million of lease termination and other restructuring costs, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures; $18.1 million for the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit; $14.0 million for impairment of other long-lived assets, primarily for buildings and machinery and equipment associated with facility closures; $13.6 million for the impairment of acquired customer relationship intangible assets; and $1.4 million for the impairment of acquired tradenames.

2013 restructuring, impairment and other charges—net: included pre-tax charges of $40.4 million for employee termination costs primarily related to the closing of two manufacturing facilities within the Publishing and Retail Services segment and one manufacturing facility within the Variable Print segment and the reorganization of certain operations; $38.4million for other estimated charges related to the decision to partially withdraw from certain multi-employer pension plans; $33.8 million of lease termination and other restructuring costs, of which $14.7 million related to multi-employer pension plan withdrawal charges primarily attributable to manufacturing facility closures; $17.6 million for impairment of other long-lived assets, primarily for buildings and machinery and equipment associated with facility closures and charges of $3.3 million for the impairment of other intangible assets in the financial reporting unit within the Strategic Services segment.

37

Acquisition-related expenses: included pre-tax charges of $8.6 million ($6.9 million after-tax) related to legal, accounting and other expenses for the year ended December 31, 2014 associated with completed or contemplated acquisitions. For the year ended December 31, 2013, these pre-tax charges were $5.9 million ($5.2 million after-tax).

Pension settlement charges: included pre-tax charges of $95.7 million ($58.4 million after-tax) for the year ended December 31, 2014, related to lump-sum pension settlement payments.

Purchase accounting inventory adjustments: included pre-tax charges of $14.3 million ($9.1 million after-tax) for the year ended December 31, 2014 as a result of inventory purchase accounting adjustments for Consolidated Graphics and Esselte.

Net gain on disposal of businesses: included a pre-tax gain on the sale of Journalism Online of $11.2 million ($6.9 million after-tax) offset by a pre-tax loss on the sale of GRES of $0.8 million ($0.5 million after-tax) for the year ended December 31, 2014. The year ended December 31, 2013 included a pre-tax loss on the disposal of the MRM France direct mail business in the International segment of $17.9 million ($12.3 million after-tax).

Loss on bankruptcy of subsidiary: included a pre-tax loss of $16.4 million ($14.2 million after-tax) for the year ended December 31, 2014 as a result of the bankruptcy liquidation of RRDA, a subsidiary of RR Donnelley.

Gain on bargain purchase: acquisition of Esselte resulted in a pre-tax gain of $9.5 million ($9.5 million after-tax) for the year ended December 31, 2014.

Venezuela currency remeasurement: currency remeasurement in Venezuela resulted in a pre-tax loss, net of foreign exchange gains, of $18.4 million ($13.8 million after-tax), of which $5.6 million was included in loss attributable to noncontrolling interests for the year ended December 31, 2014. For the year ended December 31, 2013, the currency devaluation in Venezuela resulted in a pre-tax loss of $3.2 million ($2.0 million after-tax), of which $1.0 million was included in income attributable to noncontrolling interests.

Net gain on investments:pre-tax gain of $3.0 million ($1.9 million after-tax) resulting from the sale of the Company’s shares of a previously impaired equity investment offset by a pre-tax loss of $1.3 million ($0.8 million after-tax) from the impairment of an equity investment for the year ended December 31, 2014 and impairment losses on equity investments of $5.5 million ($3.6 million after-tax) for the year ended December 31, 2013.

Loss on debt extinguishment: included a pre-tax loss of $77.1 million ($49.8 million after-tax) for the year ended December 31, 2014, related to the premiums paid, unamortized debt issuance costs and other expenses due to the repurchase of $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018 and $50.0 million of the 7.625% senior notes due June 15, 2020. For the year ended December 31, 2013, a pre-tax loss of $81.9 million ($53.9million after-tax) was recognized related to the premiums paid, unamortized debt issuance costs and other expenses due to the repurchase of $273.5 million of the 6.125% senior notes due January 15, 2017, $250.0 million of the 7.25% senior notes due May 15, 2018, $130.2 million of the 8.60% senior notes due August 15, 2016 and $100.0 million of the 5.50% senior notes due May 15, 2015.

Income tax adjustments: for the year ended December 31, 2014, income tax adjustments include a tax benefit related to the decline in value of an entity within the Strategic Services segment, of $15.2 million. For the year ended December 31, 2013, income tax adjustments included the recognition of a $58.5 million benefit related to the decline in value and reorganization of certain entities within the Publishing and Retail Services segment and a $7.2 million benefit for previously unrecognized tax benefits related to the expected resolution of certain federal tax matters for the year ended December 31, 2013.

Operations: reflected price pressures primarily in the International, Publishing and Retail Services and Variable Print segments, wage and other inflation in the International segment, an increase in depreciation and amortization expense and volume declines in the Publishing and Retail Services and Variable Print segments, partially offset by increases due to the acquisitions of Consolidated Graphics and Esselte, cost control initiatives, lower healthcare costs and increased volume in the Strategic Services segment. See further details in the review of operating results by segment that follows below.

38

Consolidated

The following table shows the results of operations for the years ended December 31, 2014 and 2013, which reflects the results of acquired businesses from the relevant acquisition dates:

	2014		2013		$ Change			% Change
	(in millions, except percentages)
Products net sales	$	9,715.2	$	8,765.8	$	949.4			10.8	%
Services net sales		1,888.2		1,714.5		173.7			10.1	%
Total net sales		11,603.4		10,480.3		1,123.1			10.7	%
Products cost of sales (exclusive of depreciation and amortization)		7,581.6		6,816.9		764.7			11.2	%
Services cost of sales (exclusive of depreciation and amortization)		1,471.2		1,332.9		138.3			10.4	%
Total cost of sales		9,052.8		8,149.8		903.0			11.1	%
Products gross profit		2,133.6		1,948.9		184.7			9.5	%
Services gross profit		417.0		381.6		35.4			9.3	%
Total gross profit		2,550.6		2,330.5		220.1			9.4	%
Selling, general and administrative expenses (exclusive of depreciation    and amortization)		1,427.0		1,181.5		245.5			20.8	%
Restructuring, impairment and other charges-net		133.7		133.5		0.2			0.1	%
Depreciation and amortization		474.0		435.8		38.2			8.8	%
Income from operations	$	515.9	$	579.7	$	(63.8	)		(11.0	%)

Net sales of products for the year ended December 31, 2014 increased $949.4 million, or 10.8%, to $9,715.2 million versus the same period in the prior year, including a $51.0 million, or 0.6%, decrease due to changes in foreign exchange rates. Net sales of products increased due to the acquisitions of Consolidated Graphics and Esselte and price increases driven by inflation in Latin America within the International segment, partially offset by lower volume in the Publishing and Retail Services segment, price pressures in the International, Publishing and Retail Services and Variable Print segments and a $12.2 million, or 0.1%, decrease due to a decline in pass-through paper sales.

Net sales from services for the year ended December 31, 2014 increased $173.7 million, or 10.1%, to $1,888.2 million versus the same period in the prior year, including a $3.2 million, or 0.2%, increase due to changes in foreign exchange rates. The increase in net sales from services was primarily due to higher volume in the Strategic Services segment, driven by the logistics and financial reporting units. These increases were partially offset by the disposition of GRES, previously included in the International segment, in the first quarter of 2014.

Products cost of sales increased $764.7 million, or 0.2% as a percentage of net sales of products for the year ended December 31, 2014 versus the same period in the prior year. Products cost of sales increased primarily due to the acquisitions of Consolidated Graphics and Esselte, wage and other inflation in the International segment and the impact of inventory purchase accounting adjustments of $14.3 million, partially offset by cost control initiatives.

Services cost of sales increased $138.3 million, or 0.2% as a percentage of net sales from services for the year ended December 31, 2014 versus the same period in the prior year. Services cost of sales increased primarily due to increased transportation costs driven by the growth in logistics volume.

Products gross profit increased $184.7 million to $2,133.6 million for the year ended December 31, 2014 versus the same period in the prior year due to the acquisitions of Consolidated Graphics and Esselte and cost control initiatives, partially offset by price pressures, volume declines in the Publishing and Retail Services segment and wage and other inflation in the International segment. Products gross margin decreased slightly from 22.2% to 22.0% reflecting price pressures, wage and other inflation in the International segment and the impact of inventory purchase accounting adjustments, mostly offset by cost control initiatives.

Services gross profit increased $35.4 million to $417.0 million for the year ended December 31, 2014 versus the same period in the prior year due to higher volume in the Strategic Services segment driven by the logistics and financial reporting units.   These increases were partially offset by increased transportation costs. Services gross margin decreased slightly from 22.3% to 22.1%, reflecting increased transportation costs, mostly offset by favorable mix in the Strategic Services segment.

Selling, general and administrative expenses increased $245.5 million to $1,427.0 million, and from 11.3% to 12.3% as a percentage of net sales, for the year ended December 31, 2014 versus the same period in the prior year reflecting increased costs as a result of the Consolidated Graphics and Esselte acquisitions, pension settlement charges of $95.7 million and wage and other inflation in the International segment, partially offset by cost control initiatives.

39

For the year ended December 31, 2014, the Company recorded net restructuring, impairment and other charges of $133.7 million compared to $133.5 million in the same period in 2013. In 2014, these charges included $35.5 million of other charges as a result of its decision to withdraw from certain multi-employer pension plans serving facilities that are currently operating. Additionally, the Company incurred $30.3 million of employee termination costs for 654 employees, substantially all of whom were terminated as of December 31, 2015. These charges were the result of the integration of Consolidated Graphics, including the closure of seven Consolidated Graphics facilities as well as one additional facility closure within the Variable Print segment, one facility closure in the Publishing and Retail Services segment and the reorganization of certain operations. The Company also recorded lease termination and other restructuring charges of $20.8 million for the year ended December 31, 2014, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures. In addition, the Company recorded $18.1 million of non-cash charges for the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit within the Publishing and Retail Services segment. The goodwill impairment charge resulted from reductions in the estimated fair value of the reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to expectations as of the last annual goodwill impairment test. The lower expectations were due to an expected increase in volume declines and increasing price pressures resulting from declining demand, primarily in catalogs and magazines.  Revenue and income from operations in the magazines, catalogs and retail inserts reporting unit for the year ended December 31, 2014 were lower than previous expectations due to volume declines and price pressures. The negative trends experienced in 2014 are expected to continue in future years. The Company also recorded non-cash charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively, for the year ended December 31, 2014. Additionally, the Company recorded $1.4 million of impairment charges related to acquired tradenames in the commercial and digital print reporting unit within the Variable Print segment and $14.0 million of impairment charges primarily related to buildings, machinery and equipment as a result of facility closures for the year ended December 31, 2014.  

For the year ended December 31, 2013, the Company recorded net restructuring, impairment and other charges of $133.5 million. These charges included $40.4 million of employee termination costs for 1,382 employees, all of whom were terminated as of December 31, 2015. These charges were the result of the closure of two manufacturing facilities within the Publishing and Retail Services segment and one manufacturing facility within the Variable Print segment and the reorganization of certain operations. Additionally, the Company recorded $38.4 million of other charges for estimated obligations related to the decision to withdraw from certain multi-employer pension plans. For the year ended December 31, 2013, the Company also incurred lease termination and other restructuring charges of $33.8 million, of which $14.7 million related to multi-employer pension plan complete or partial withdrawal charges as a result of facility closures, and $17.6 million of impairment charges primarily related to buildings and machinery and equipment associated with facility closures. In addition, the Company recorded non-cash impairment charges of $3.3 million related to acquired customer relationship intangible assets in the financial reporting unit within the Strategic Services segment.

Depreciation and amortization increased $38.2 million to $474.0 million for the year ended December 31, 2014 compared to the same period in 2013, primarily due to the acquisitions of Consolidated Graphics and Esselte, partially offset by the impact of lower capital spending in recent years compared to historical levels. Depreciation and amortization included $78.1 million and $64.0 million of amortization of other intangible assets related to customer relationships, trade names, trademarks, licenses and agreements for the year ended December 31, 2014 and 2013, respectively.

Income from operations for the year ended December 31, 2014 was $515.9 million, a decrease of $63.8 million, compared to the year ended December 31, 2013.  The decrease was due to pension settlement charges, price pressures primarily in the International, Publishing and Retail Services and Variable Print segments, wage and other inflation in the International segment, an increase in depreciation and amortization expense and volume declines in the Publishing and Retail Services and Variable Print segments, partially offset by increases due to the acquisitions of Consolidated Graphics and Esselte, cost control initiatives, lower healthcare costs and increased volume in the Strategic Services segment.

	2014		2013		$ Change			% Change
	(in millions, except percentages)
Interest expense-net	$	282.1	$	261.4	$	20.7			7.9	%
Investment and other expense-net		9.6		27.4		(17.8	)		(65.0	%)
Loss on debt extinguishment		77.1		81.9		(4.8	)		(5.9	%)

Net interest expense increased by $20.7 million for the year ended December 31, 2014 versus the same period in 2013, primarily due to an increase in average outstanding debt, including higher average credit facility borrowings, and an increase in fixed rate debt, including the effect of fixed to floating interest rate swaps.

40

Net investment and other expense for the year ended December 31, 2014 and 2013 was $9.6 million and $27.4 million, respectively. The loss related to the Venezuelan currency remeasurement, net of foreign exchange gains, for the year ended December 31, 2014, of $18.4 million and the loss on the bankruptcy liquidation of RRDA of $16.4 million were partially offset by a gain on the sale of Journalism Online of $11.2 million, a $9.5 million bargain purchase gain related to the Esselte acquisition and a gain of $3.0 million resulting from the sale of the Company’s shares of a previously impaired equity investment. For the year ended December 31, 2013, the Company recorded a loss on the disposal of the MRM France direct mail business in the International segment of $17.9 million, impairment losses on equity investments of $5.5 million and a $3.2 million loss related to the devaluation of the Venezuelan currency.

Loss on debt extinguishment, related to the premiums paid, unamortized debt issuance costs and other expenses for year ended December 31, 2014 was $77.1 million due to the repurchase of $361.1 million of senior notes.  Loss on debt extinguishment for the year ended December 31, 2013 was $81.9million related to the premiums paid, unamortized debt issuance costs and other expenses due to the repurchase of $753.7 million of senior notes.

	2014			2013			$ Change			% Change
	(in millions, except percentages)
Income before income taxes	$	147.1		$	209.0		$	(61.9	)		(29.6	%)
Income tax expense (benefit)		26.3			(9.2	)		35.5		nm
Effective income tax rate		17.9	%		(4.4	%)

The effective income tax rate for the year ended December 31, 2014 was 17.9% compared to negative 4.4% in the same period in 2013.  The tax rate in 2014 was impacted by a $15.2 million tax benefit related to the decline in value of an entity within the Strategic Services segment. The tax rate in 2013 was impacted by a $58.5 million benefit related to the decline in value and reorganization of certain entities within the Publishing and Retail Services segment, a benefit of $7.2 million for the recognition of previously unrecognized tax benefits related to the expected resolution of certain federal matters, the release of valuation allowances related to certain deferred tax assets and the recognition of previously unrecognized tax benefits related to the expected resolution of certain state tax matters.

Income attributable to noncontrolling interests was income of $3.4 million for the year ended December 31, 2014 and income of $7.0 million for the year ended December 31, 2013. For the year ended December 31, 2014 and 2013, the Venezuelan currency remeasurement, net of foreign exchange gains, resulted in losses attributable to noncontrolling interests of $5.6 million and $1.0 million, respectively. The impacts of the remeasurements were partially offset for the year ended December 31, 2014 and 2013 by increases in the Company’s operating earnings in Venezuela.  

Net earnings attributable to RR Donnelley common shareholders for the year ended December 31, 2014 was $117.4 million, or $0.59 per diluted share, compared to $211.2 million, or $1.15 per diluted share, for the year ended December 31, 2013. In addition to the factors described above, the per share results reflect an increase in weighted average diluted shares outstanding of 16.5 million primarily as a result of shares issued in conjunction with the Consolidated Graphics and Esselte acquisitions.

Information by Segment

The following tables summarize net sales, income (loss) from operations and certain items impacting comparability within each of the operating segments and Corporate. The descriptions of the reporting units generally 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.

Publishing and Retail Services

	Year Ended
	December 31,
	2014				2013
	(in millions, except percentages)
Net sales		$	2,632.3			$	2,774.8
Income from operations			86.1				109.6
Operating margin			3.3	%			3.9	%
Restructuring and impairment and other charges-net			50.7				73.7

41

	Net Sales for the Year Ended
	December 31,
Reporting unit	2014		2013		$ Change			% Change
	(in millions, except percentages)
Magazines, catalogs and retail inserts	$	1,646.0	$	1,724.7	$	(78.7	)		(4.6	%)
Books		841.9		875.2		(33.3	)		(3.8	%)
Directories		144.4		174.9		(30.5	)		(17.4	%)
Total Publishing & Retail Services	$	2,632.3	$	2,774.8	$	(142.5	)		(5.1	%)

Net sales for the Publishing and Retail Services segment for the year ended December 31, 2014 were $2,632.3 million, a decrease of $142.5 million, or 5.1%, compared to 2013. Net sales decreased due to lower volume in magazines, catalogs and retail inserts and educational books, price pressures in magazines, catalogs and retail inserts, decreases in pass-through paper sales and lower volume in directories. An analysis of net sales by reporting unit follows:

· Magazines, catalogs and retail inserts: Sales decreased due to reduced volume, price pressures primarily in catalogs and magazines and a decrease in pass-through paper sales.

· Books: Sales decreased as a result of reduced volume in educational books primarily as a result of a shift in product types funded by states for educational materials, decreased volume in consumer books, partially offset by growth in packaging and book fulfillment.

· Directories: Sales decreased primarily as a result of lower volume as a result of electronic substitution, a decline in pass-through paper sales and price pressures.

Publishing and Retail Services segment income from operations decreased $23.5 million for the year ended December 31, 2014 due to price pressures primarily in magazines, catalogs and retail inserts and volume declines in magazines, catalogs and retail inserts, educational books and directories. These decreases were partially offset by cost control initiatives, lower restructuring, impairment and other charges and lower depreciation and amortization expense. Operating margins decreased from 3.9% for the year ended December 31, 2013 to 3.3% for the year ended December 31, 2014. While lower restructuring, impairment and other charges improved operating margins by 0.8 percentage points, the remaining decline in operating margins was due to price pressures primarily in magazines, catalogs and retail inserts and volume declines in magazines, catalogs and retail inserts, educational books and directories, partially offset by cost control initiatives and lower depreciation and amortization expense.

Variable Print

	Year Ended
	December 31,
	2014				2013
	(in millions, except percentages)
Net sales		$	3,767.9			$	2,592.8
Income from operations			240.8				197.9
Operating margin			6.4	%			7.6	%
Purchase accounting inventory adjustments			14.3				-
Restructuring and impairment and other charges-net			44.8				15.6
Acquisition-related expenses			0.1				-

42

	Net Sales for the Year Ended
	December 31,
Reporting unit	2014			2013			$ Change				% Change
	(in millions, except percentages)
Commercial and digital print (a)		$	1,696.0		$	807.4		$	888.6			110.1	%
Direct mail (a)			519.9			464.2			55.7			12.0	%
Office products			496.3			238.9			257.4			107.7	%
Labels			436.4			432.5			3.9			0.9	%
Statement printing			390.4			396.5			(6.1	)		(1.5	%)
Forms			228.9			253.3			(24.4	)		(9.6	%)
Total Variable Print		$	3,767.9		$	2,592.8		$	1,175.1			45.3	%

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

Net sales for the Variable Print segment for the year ended December 31, 2014 were $3,767.9 million, an increase of $1,175.1 million, or 45.3%, compared to 2013, including a $5.3 million, or 0.1% decrease due to changes in foreign exchange rates. Net sales increased due to the acquisitions of Consolidated Graphics and Esselte and higher volume in direct mail, in-store marketing materials and office products, partially offset by price pressures and lower volume in forms and statement printing. An analysis of net sales by reporting unit follows:

· Commercial and digital print: Sales increased due to the acquisition of Consolidated Graphics and higher volume of in-store marketing materials, partially offset by price pressures.

· Direct mail: Sales increased due to the acquisition of Consolidated Graphics and higher volume, partially offset by price pressures.

· Office products: Sales increased due to the acquisition of Esselte and higher volume in binder and note-taking products.

· Labels: Sales increased due to higher volume, partially offset by price pressures.

· Statement printing: Sales decreased as a result of price pressures and lower volume from existing customers, partially offset by higher pass-through postage sales.

· Forms: Sales decreased due to lower volume, primarily as a result of electronic substitution.

Variable Print segment income from operations increased $42.9 million for the year ended December 31, 2014 mainly due to higher volume resulting from the acquisitions of Consolidated Graphics and Esselte and cost control initiatives, partially offset by higher depreciation and amortization expense, higher restructuring, impairment and other charges, volume declines, price pressures, $14.3 million of charges resulting from purchase accounting inventory adjustments from the Consolidated Graphics and Esselte acquisitions and higher incentive compensation expense. Operating margins decreased from 7.6% for the year ended December 31, 2013 to 6.4% for the year ended December 31, 2014, of which 1.1 percentage points were due to higher restructuring, impairment and other charges and 0.6 percentage points were due to the purchase accounting inventory adjustments.  These decreases were offset by higher volume resulting from the acquisitions of Consolidated Graphics and Esselte and cost control initiatives.

Strategic Services

	Year Ended
	December 31,
	2014				2013
	(in millions, except percentages)
Net sales		$	2,607.5			$	2,453.0
Income from operations			257.4				232.8
Operating margin			9.9	%			9.5	%
Restructuring and impairment and other charges-net			11.6				19.2

43

	Net Sales for the Year Ended
	December 31,
Reporting unit	2014		2013		$ Change			% Change
	(in millions, except percentages)
Logistics	$	1,193.3	$	1,084.3	$	109.0			10.1	%
Financial		1,014.5		1,005.3		9.2			0.9	%
Sourcing		214.9		177.5		37.4			21.1	%
Digital and creative solutions		184.8		185.9		(1.1	)		(0.6	%)
Total Strategic Services	$	2,607.5	$	2,453.0	$	154.5			6.3	%

Net sales for the Strategic Services segment for the year ended December 31, 2014 were $2,607.5 million, an increase of $154.5 million, or 6.3%, compared to the year ended December 31, 2013, including a $1.7 million, or 0.1%, decrease due to changes in foreign exchange rates. Net sales increased primarily due to higher volume in logistics and commercial print sourcing products, partially offset by a decline in compliance volume. An analysis of net sales by reporting unit follows:

· Logistics: Sales increased primarily due to higher volume in freight brokerage services, international mail services, co-mail services and print logistics, partially offset by lower pass through postage sales, a decrease in fuel surcharges and lower volume in expedited mail services.

· Financial: Sales increased slightly due to an increase in capital markets transactions activity, translation services and investment management products volume, largely offset by lower compliance volume.

· Sourcing: Sales increased due to higher print-management volume primarily in commercial print.

· Digital and creative solutions: Sales decreased slightly due to lower volume in digital content creation and distribution, creative and photo services.

Strategic Services segment income from operations increased $24.6 million for the year ended December 31, 2014 due to higher volume in logistics, lower restructuring and impairment charges, a gain on the sale of a building and royalties for the licensing of intellectual property, partially offset by higher costs of transportation, the prior year reversals of earnouts from acquisitions and higher depreciation and amortization expense. Operating margins increased from 9.5% to 9.9% of which 0.3 percentage points were due to lower restructuring, impairment and other charges.  The remainder of the increase was due to a favorable mix in logistics, a gain on the sale of a building and royalties for the licensing of intellectual property, partially offset by an increase in transportation costs.

International

	Year Ended
	December 31,
	2014				2013
	(in millions, except percentages)
Net sales		$	2,595.7			$	2,659.7
Income from operations			106.7				147.3
Operating margin			4.1	%			5.5	%
Restructuring and impairment and other charges-net			22.3				18.9
Acquisition related expenses			0.4				0.2

	Net Sales for the Year Ended
	December 31,
Reporting unit	2014		2013		$ Change			% Change
	(in millions, except percentages)
Asia	$	743.7	$	743.4	$	0.3			0.0	%
Business process outsourcing		467.0		491.7		(24.7	)		(5.0	%)
Latin America		440.6		511.7		(71.1	)		(13.9	%)
Europe		383.7		373.6		10.1			2.7	%
Global Turnkey Solutions		341.7		305.4		36.3			11.9	%
Canada		219.0		233.9		(14.9	)		(6.4	%)
Total International	$	2,595.7	$	2,659.7	$	(64.0	)		(2.4	%)

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Net sales in the International segment for the year ended December 31, 2014 were $2,595.7 million, a decrease of $64.0 million, or 2.4%, compared to the same period in 2013, including a $40.8 million, or 1.5%, decrease due to changes in foreign exchange rates. The net sales decrease was due to price pressures in Asia, the impact of dispositions in business process outsourcing, the bankruptcy liquidation of RRDA and lower pass-through print management volume in business process outsourcing. These decreases were partially offset by price increases driven by inflation in Latin America, higher volume in Global Turnkey Solutions, increased volume in Asia, the acquisition of Consolidated Graphics and higher pass-through paper sales in Europe. An analysis of net sales by reporting unit follows:

· Asia: Sales increased slightly due to higher volume in labels, book exports and packaging products, mostly offset by price pressures.

· Business process outsourcing: Sales decreased due to a decrease in pass-through print management volume in part due to customer losses, the sale of GRES in the first quarter of 2014, the sale of MRM France during the fourth quarter of 2013 and price pressures, partially offset by higher outsourcing volume and changes in foreign exchanges rates.

· Latin America: Sales decreased due to changes in foreign exchange rates across the region and the bankruptcy liquidation of RRDA, a subsidiary of the Company, partially offset by price increases driven by inflation primarily in Venezuela.

· Europe: Sales increased due to the acquisition of Consolidated Graphics and an increase in pass-through paper sales, partially offset by price pressures.

· Global Turnkey Solutions: Sales increased due to higher volume in part due to a new customer, partially offset by price pressures.

· Canada: Sales decreased primarily due to changes in foreign exchange rates, partially offset by higher labels volume.

International segment income from operations decreased $40.6 million primarily due to price pressures primarily in Asia, wage inflation primarily in Latin America and Asia and changes in foreign exchange rates, partially offset by higher volume in Asia, higher outsourcing volume in business process outsourcing, the acquisition of Consolidated Graphics and cost control initiatives. Operating margins decreased from 5.5% to 4.1% due to price pressures and wage inflation in Latin America and Asia, partially offset by higher volume resulting from the acquisition of Consolidated Graphics and cost control initiatives.

Corporate

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

	Year Ended
	December 31,
	2014			2013
	(in millions)
Operating expenses	$		175.1	$	107.9
Restructuring and impairment charges			4.3		6.1
Acquisition-related expenses			8.1		5.7
Pension settlement charges		95.7			-

Corporate operating expenses in the year ended December 31, 2014 were $175.1 million, an increase of $67.2 million compared to the same period in 2013. The increase was driven by pension settlement charges of $95.7 million, higher bad debt expense and long-term compensation expense offset by lower healthcare costs.

LIQUIDITY AND CAPITAL RESOURCES

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 $1.5 billion senior secured revolving credit facility (the “Credit Agreement”) are the Company’s primary sources of liquidity and are expected to be used for, among other things, payment of interest and principal on the Company’s long-term debt obligations, distributions to shareholders that may be approved by the Board of Directors, acquisitions, capital expenditures necessary to support productivity improvement and growth and completion of restructuring programs.

The following describes the Company’s cash flows for the years ended December 31, 2015, 2014 and 2013.

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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.

2015 compared to 2014

Net cash provided by operating activities was $652.0 million for the year ended December 31, 2015, compared to $722.7 million for the year ended December 31, 2014. The decrease in net cash provided by operating activities reflected the timing of payments for employee-related liabilities and higher payments for incentive compensation costs and taxes, partially offset by lower pension and other postretirement benefit plan contributions.

2014 compared to 2013

Net cash provided by operating activities was $722.7 million for the year ended December 31, 2014, compared to $694.8 million for the year ended December 31, 2013. The increase in net cash provided by operating activities reflected timing of supplier payments and cash collections, partially offset by an increase in pension and other postretirement benefits plan contributions and higher payments in 2014 related to 2013 incentive compensation.

Cash Flows From Investing Activities

2015 compared to 2014

Net cash used in investing activities for the year ended December 31, 2015 was $317.1 million compared to $577.2 million for the year ended December 31, 2014. Capital expenditures were $207.6 million during the year ended December 31, 2015, a decrease of $16.0 million as compared to the same period of 2014. During the year ended December 31, 2015, net cash used for acquisitions, primarily Courier, was $118.2 million. Net cash used in investing activities for the year ended December 31, 2014 included $380.8 million related to the acquisitions of Consolidated Graphics, Esselte and MultiCorpora. Net cash used for dispositions of businesses was $1.6 million for the year ended December 31, 2014, which included cash incentive payments made in connection with the disposal of MRM France offset by net cash proceeds from the dispositions of GRES, Journalism Online and RRDA. Cash provided by investing activities for the year ended December 31, 2014 included proceeds from the sale of investments and other assets of $42.7 million, primarily related to facility closures and related property.

2014 compared to 2013

Net cash used in investing activities for the year ended December 31, 2014 was $577.2 million compared to $212.4 million for the year ended December 31, 2013. Net cash used for acquisitions was $380.8 million during the year ended December 31, 2014, substantially all related to the acquisitions of Consolidated Graphics, Esselte and MultiCorpora. Capital expenditures were $223.6 million during the year ended December 31, 2014, an increase of $7.0 million as compared to the same period of 2013. Net cash used for dispositions of businesses was $1.6 million for the year ended December 31, 2014, which included cash incentive payments made in connection with the disposal of MRM France offset by net cash proceeds from the dispositions of GRES, Journalism Online and RRDA. Cash provided by investing activities included proceeds from the sale of investments and other assets of $42.7 million, primarily related to facility closures and related property. Cash used in investing activities for the year ended December 31, 2013 included $12.0 million related to cash incentive payments made to the purchaser in connection with the disposal of MRM France.

Cash Flows From Financing Activities

2015 compared to 2014

Net cash used in financing activities for the year ended December 31, 2015 was $436.5 million compared to $605.1 million for the year ended December 31, 2014. Cash on hand and borrowings under the Credit Agreement were used to pay $200.0 million of the 5.50% senior notes that matured on May 15, 2015. The Company also repaid $70.0 million of debt assumed from the Courier acquisition during the year ended December 31, 2015. During the year ended December 31, 2014, cash on hand and borrowings under the Credit Agreement were used to pay $258.2 million of the 4.95% senior notes that matured during the second quarter of 2014. Additionally, during the year ended December 31, 2014, the Company received proceeds of $400.0 million from the issuance of 6.00% senior notes due April 1, 2024, which were used, along with borrowings under the Credit Agreement, to repurchase $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018 and $50.0 million of the 7.625% senior notes due June 15, 2020. The Company also repaid $118.4 million of debt and interest assumed from the Consolidated Graphics acquisition during the year ended December 31, 2014.

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2014 compared to 2013

Net cash used in financing activities for the year ended December 31, 2014 was $605.1 million compared to $122.8 million provided in financing activities in the same period in 2013. Cash on hand and borrowings under the Credit Agreement were used to pay $258.2 million of the 4.95% senior notes that matured during the second quarter of 2014. Additionally, during the year ended December 31, 2014, the Company received proceeds of $400.0 million from the issuance of 6.00% senior notes due April 1, 2024, which were used, along with borrowings under the Credit Agreement, to repurchase $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018 and $50.0 million of the 7.625% senior notes due June 15, 2020. The Company also repaid $118.4 million of debt and interest assumed from the Consolidated Graphics acquisition during the year ended December 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $1,197.8 million from the issuance of 7.875% senior notes due March 15, 2021, 7.00% senior notes due February 15, 2022 and 6.50% senior notes due November 15, 2023.  Proceeds from the issuances were used to repurchase $273.5 million of the 6.125% senior notes due January 15, 2017, $250.0 million of the 7.25% senior notes due May 15, 2018, $130.2 million of the 8.60% senior notes due August 15, 2016 and $100.0 million of the 5.50% senior notes due May 15, 2015, to reduce borrowing under the Credit Agreement, for general corporate purposes, as well as to provide cash on hand in anticipation of the acquisition of Consolidated Graphics.

Dividends

Cash dividends paid to shareholders totaled $212.6 million, $203.1 million and $188.5 million in 2015, 2014 and 2013, respectively. On January 12, 2016, the Board of Directors of the Company declared a quarterly cash dividend of $0.26 per common share, payable on March 1, 2016 to shareholders of record on February 16, 2016.

The Credit Agreement generally allows annual dividend payments of up to $225.0 million in aggregate, though additional dividends may be allowed subject to certain conditions. The Company’s Board of Directors must review and approve future dividend payments and will determine whether to declare additional dividends based on the Company’s operating performance, expected future cash flows, debt levels, liquidity needs and investment opportunities.

Contractual Cash Obligations and Other Commitments and Contingencies

The following table quantifies the Company’s future contractual obligations as of December 31, 2015:

	Payments Due In
	Total		2016		2017		2018		2019		2020		Thereafter
	(in millions)
Debt (a)	$	3,450.4	$	234.8	$	254.3	$	250.2	$	411.1	$	350.0	$	1,950.0
Interest due on debt (b)		1,421.1		256.2		229.7		212.9		180.1		150.1		392.1
Operating leases (c)		536.5		155.2		112.5		75.3		54.3		41.7		97.5
Multi-employer pension plan withdrawal obligations		243.5		16.0		16.0		16.0		16.0		16.0		163.5
Deferred compensation		144.6		22.0		35.0		20.3		6.6		5.1		55.6
Outsourced services		111.3		68.1		28.0		12.7		2.0		0.3	0.2
Pension and other postretirement benefits plan contributions (d)		60.0		30.0		30.0		—		—		—		—
Incentive compensation		36.6		36.6		—		—		—		—		—
Other (e)		95.4		88.0		4.5		1.2	1.3		0.3			0.1
Total as of December 31, 2015	$	6,099.4	$	906.9	$	710.0	$	588.6	$	671.4	$	563.5	$	2,659.0

(a) Excludes unamortized debt issuance costs of $25.6 million, a discount of $2.6 million and an adjustment for fair value hedges of $0.7 million related to the Company’s 8.25% senior notes due March 15, 2019, which do not represent contractual commitments with a fixed amount or maturity date.

(b) Includes scheduled interest payments, net of $9.3 million of estimated cash receipts from interest rate swaps.

(c) Includes obligations to landlords.

(d) Includes the high end of the estimated range for 2016 and 2017 pension and other postretirement benefits plan contributions and does not include the obligations for subsequent periods, as the Company is unable to reasonably estimate the ultimate amounts.

(e) Represents contractual obligations for purchases of property, plant and equipment ($46.8 million), employee restructuring-related severance payments ($20.2 million) and purchases of natural gas ($7.3 million). Additionally, the Company has included $6.0 million of uncertain tax liabilities that are classified as current liabilities in the Consolidated Balance Sheets as payments due in 2016. Excluded from the table are $50.3 million of uncertain tax liabilities, as the Company is unable to reasonably estimate the ultimate amount or timing of settlement or other resolution.

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In connection with the proposed spinoff transactions, the Company expects to incur a significant amount of spinoff-related transaction and transition expenses in 2016, including information technology, consulting, real estate, finance and other incremental expenses.

Liquidity

The Company maintains cash pooling structures that enable participating international locations to draw on the pools’ cash resources to meet local liquidity needs. Foreign cash balances may be loaned from certain cash pools to U.S. operating entities on a temporary basis in order to reduce the Company’s short-term borrowing costs or for other purposes.

Cash and cash equivalents were $389.6 million as of December 31, 2015, a decrease of $138.3 million as compared to December 31, 2014.

The Company’s cash balances are held in numerous locations throughout the world, including substantial amounts held outside of the United States. Cash and cash equivalents as of December 31, 2015 included $88.3 million in the U.S. and $301.3 million at international locations. The Company’s foreign subsidiaries are expected to make approximately $175.0 million in payments in 2016 and future years in satisfaction of intercompany obligations.The Company has recognized deferred tax liabilities of $4.3 million as of December 31, 2015 related to local taxes on certain foreign earnings that are not considered to be permanently reinvested. Certain other cash balances of foreign subsidiaries may be subject to U.S. or local country taxes if repatriated to the U.S. In addition, repatriation of some foreign cash balances is further restricted by local laws. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its 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 tax liabilities.

Included in cash and cash equivalents of $389.6 million at December 31, 2015 were short-term investments in the amount of $56.8 million, which primarily consist of short-term deposits and money market funds. These investments are with institutions with sound credit ratings and are expected to be highly liquid.

The Company has a senior secured revolving Credit Agreement which was amended effective September 9, 2014 to increase the aggregate revolving commitments of the lenders from $1.15 billion to $1.5 billion and to extend the expiration date from October 15, 2017 to September 9, 2019.  Additionally, in order to provide greater flexibility due to the increased size of the Company as a result of the acquisitions of Consolidated Graphics and Esselte, certain terms of the Credit Agreement were amended effective April 11, 2014.

Cash on hand and borrowings under the Credit Agreement were used to pay the $200.0 million 5.50% senior notes that matured on May 15, 2015.

Borrowings under the Credit Agreement bear interest at a base or Eurocurrency rate plus an applicable margin determined at the time of the borrowing. In addition, the Company pays facility commitment fees which fluctuate dependent on the Credit Agreement’s credit ratings. The Credit Agreement is used for general corporate purposes, including acquisitions and letters of credit. The Company’s obligations under the Credit Agreement are guaranteed by its material and certain other domestic subsidiaries and are secured by a pledge of the equity interests of certain subsidiaries, including most of its domestic subsidiaries, and a security interest in substantially all of the domestic current assets and mortgages of certain domestic real property of the Company.

The Credit Agreement is subject to a number of covenants, including a minimum Interest Coverage Ratio and a maximum Leverage Ratio, as defined and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets.

48

There were no borrowings under the Credit Agreement as of December 31, 2015. Based on the Company’s results of operations for the year ended December 31, 2015 and existing debt, the Company would have had the ability to utilize $1.2 billion of the $1.5 billion Credit Agreement and not have been in violation of the terms of the agreement. The current availability under the Credit Agreement and net available liquidity as of December 31, 2015 is shown in the table below:

	December 31, 2015
Availability	(in millions)
Committed Credit Agreement	$	1,500.0
Availability reduction from covenants		344.2
	$	1,155.8
Usage
Borrowings under the Credit Agreement		-
Impact on availability related to outstanding letters of credit		-
	$	-
Current availability at December 31, 2015	$	1,155.8
Cash		389.6
Net Available Liquidity (a)	$	1,545.4

(a) Net available liquidity does not include credit facilities of non-U.S. subsidiaries, which are uncommitted facilities

___________________________

The Company was in compliance with its debt covenants as of December 31, 2015, and expects to remain in compliance based on management’s estimates of operating and financial results for 2016 and the foreseeable future. However, declines in market and economic conditions or demand for certain of the Company’s products and services could impact the Company’s ability to remain in compliance with its debt covenants in future periods. Additionally, if the proposed spinoff transactions are completed, the Company will be required to amend the existing Credit Agreement or enter into a replacement Credit Agreement. As of December 31, 2015, the Company met all the conditions required to borrow under the Credit Agreement and management expects the Company to continue to meet the applicable borrowing conditions.

The failure of a financial institution supporting the Credit Agreement would reduce the size of the Company’s committed facility unless a replacement institution were added. Currently, the Credit Agreement is supported by seventeen U.S. and international financial institutions.

As of December 31, 2015, the Company had $91.3 million in outstanding letters of credit and bank guarantees, of which $55.6 million were issued under the Credit Agreement. The letters of credit issued under the Credit Agreement did not reduce availability under the Credit Agreement as of December 31, 2015, as the amounts issued were less than the reduction in availability from the Leverage Ratio covenant. As of December 31, 2015, the Company also had $167.6 million in other uncommitted credit facilities, primarily outside the U.S. (the “Other Facilities”). As of December 31, 2015, bank acceptance drafts, letters of credit and guarantees of $81.7 million were issued, and reduced availability, under the Company’s Other Facilities. Total borrowings under the Credit Agreement and the Other Facilities (the “Combined Facilities”) were $11.2 million as of December 31, 2015.

On June 19, 2015, Moody’s Investors Service (“Moody’s”) reaffirmed the Company’s long-term corporate credit rating and changed the ratings outlook from negative to stable. On August 4, 2015, in connection with the announcement of the Company’s proposed spinoff transactions, Standard & Poor’s Rating Services (“S&P”) changed the Company’s long-term corporate credit ratings outlook from stable to CreditWatch negative and Moody’s changed the ratings outlook from stable to developing.On February 2, 2016, Moody’s downgraded the Company’s long-term corporate credit rating from Ba2 to Ba3 and changed the credit ratings outlook from on review for downgrade to developing.  Moody’s also downgraded its rating on the Company’s senior unsecured debt and Credit Agreement from Ba3 to B1 and Baa2 to Baa3, respectively. The Company’s current S&P and Moody’s credit ratings are shown in the table below:

	S&P	Moody's
Long-term corporate credit rating	BB-, CreditWatch negative	Ba3, developing
Senior unsecured debt	BB-	B1
Credit Agreement	BB+	Baa3

49

As a result of previous downgrades by Moody’s and S&P, the interest rate on the Company’s 11.25% senior notes due February 1, 2019 was 12.75% as of December 31, 2015 and 2014. As a result of the Moody’s downgrade on February 2, 2016, the interest rate increased from 12.75% to 13.0% in February 2016. The applicable margin used in the calculation of interest on borrowings under the Credit Agreement and rate for the related facility commitment fees fluctuate dependent on the Credit Agreement’s credit ratings. The terms and conditions of future borrowings may also be impacted as a result of ratings downgrades.

Acquisitions and Dispositions

During the year ended December 31, 2015, the Company paid $118.2 million, net of cash acquired, substantially all for the acquisition of Courier.  The Company financed the cash portion of the Courier acquisition with a combination of cash on hand and borrowings under the Credit Agreement.

During the year ended December 31, 2014, the Company paid $380.8 million of total cash purchase prices, net of cash acquired, substantially all for the acquisitions of Consolidated Graphics, Esselte and MultiCorpora. The Company financed the cash portion of these acquisitions with a combination of cash on hand, including net proceeds from the $350.0 million 6.50% senior note issuance on November 12, 2013, and borrowings under the Credit Agreement.

During the year ended December 31, 2014, the Company sold the assets and liabilities of Journalism Online, a provider of online subscription management services, for net proceeds of $10.7 million, of which $9.5 million was received as of December 31, 2014. The Company also sold the assets and liabilities of GRES, its commercial and residential real estate advisory services, for net proceeds of $1.8 million.

During the year-ended December 31, 2013, the Company sold the assets and liabilities of MRM France, resulting in cash incentive payments due to the purchaser of $18.8 million, of which $16.4 million was paid as of December 31, 2014 with the remaining balance to be paid during the first quarter of 2016.

Debt Issuances

On March 20, 2014, the Company issued $400.0 million of 6.00% senior notes due April 1, 2024. Interest on the notes is payable semi-annually on April 1 and October 1, and commenced on October 1, 2014. The net proceeds from the offering along with borrowings under the Credit Agreement were used to repurchase $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018 and $50.0 million of the 7.625% senior notes due June 15, 2020.

On November 12, 2013, the Company issued $350.0 million of 6.50% senior notes due November 15, 2023. Interest on the notes is payable semi-annually on May 15 and November 15, and commenced on May 15, 2014. The net proceeds from the offering, along with cash on hand and borrowings under the Credit Agreement, were used to finance the cash portion of the acquisition of Consolidated Graphics.

On August 26, 2013, the Company issued $400.0 million of 7.00% senior notes due February 15, 2022. Interest on the notes is payable semi-annually on February 15 and August 15 of each year, and commenced on February 15, 2014. The net proceeds from the offering were used to repurchase $200.0 million of the 7.25% senior notes due May 15, 2018, $100.0 million of the 5.50% senior notes due May 15, 2015 and $100.0 million of the 6.125% senior notes due January 15, 2017.

On March 14, 2013, the Company issued $450.0 million of 7.875% senior notes due March 15, 2021. Interest on the notes commenced on September 15, 2013 and is payable semi-annually on March 15 and September 15 of each year. The net proceeds from the offering were used to repurchase $173.5 million of the 6.125% senior notes due January 15, 2017, $130.2 million of the 8.60% senior notes due August 15, 2016 and $50.0 million of the 7.25% senior notes due May 15, 2018 and to reduce borrowings under the Credit Agreement.

Risk Management

The Company is exposed to interest rate risk on its variable debt and price risk on its fixed-rate debt. At December 31, 2015, the Company’s exposure to rate fluctuations on variable-interest borrowings was $200.6 million, including $190.0 million notional value of interest rate swap agreements (See Note 14, Derivatives, to the Consolidated Financial Statements) and $10.6 million in borrowings under the Company’s Other Facilities. Including the effect of the fixed to floating interest rate swaps, approximately 94% of the Company’s outstanding term debt was comprised of fixed-rate debt as of December 31, 2015.

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 December 31, 2015 and 2014 by approximately $99.4 million and $102.3 million, respectively.

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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 many 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 that borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the subsidiary, the Company is exposed to currency risk and may enter into foreign exchange spot and forward contracts to hedge the currency risk. As of December 31, 2015 and 2014, the aggregate notional amount of outstanding foreign exchange forward contracts was approximately $268.4 million and $377.2 million, respectively (see Note 14, Derivatives, to the Consolidated Financial Statements). Net unrealized gains from these foreign exchange forward contracts were $0.3 million and $6.5 million at December 31, 2015 and 2014, respectively. The Company does not use derivative financial instruments for trading or speculative purposes.

OTHER INFORMATION

Environmental, Health and Safety

For a discussion of certain environmental, health and safety issues involving the Company, see Note 10, Commitments and Contingencies, to the Consolidated Financial Statements.

Litigation and Contingent Liabilities

For a discussion of certain litigation involving the Company, see Note 10, Commitments and Contingencies, to the Consolidated Financial Statements.

New Accounting Pronouncements

Recently issued accounting standards and their estimated effect on the Company’s consolidated financial statements are also described in Note 22, New Accounting Pronouncements, to the Consolidated Financial Statements.

ITEM  7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

The Company is exposed to interest rate risk on its variable-rate debt, price risk on its fixed-rate debt and the impact of foreign currency fluctuations in certain countries in which it operates. The Company discusses risk management in various places throughout this document, including discussions in Item 7 of Part II of this Annual Report on Form 10-K concerning Liquidity and Capital Resources and in Note 14, Derivatives, to Consolidated Financial Statements.

Credit Risk

The Company is exposed to credit risk on accounts receivable balances. This risk is mitigated due to the Company’s large, diverse customer base, dispersed over various geographic regions and industrial sectors. No single customer comprised more than 10% of the Company’s consolidated net sales in 2015, 2014 or 2013. The Company maintains provisions for potential credit losses and such losses to date have normally been within the Company’s expectations. The Company evaluates the solvency of its customers on an ongoing basis to determine if additional allowances for doubtful accounts receivable need to be recorded. Significant economic disruptions or a slowdown in the economy could result in significant additional charges.

Commodities

The primary raw materials used by the Company are paper and ink. To reduce price risk caused by market fluctuations, the Company has incorporated price adjustment clauses in certain sales contracts. Management believes a hypothetical 10% change in the price of paper and other raw materials would not have a significant effect on the Company’s consolidated annual results of operations or cash flows because these costs are generally passed through to its customers.

ITEM  8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial information required by Item 8 is contained in Item 15 of Part IV of this Annual Report on Form 10-K.

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ITEM  9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE  

None.

ITEM  9A. CONTROLS AND PROCEDURES

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 December 31, 2015, 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 December 31, 2015 were effective in ensuring information required to be disclosed in the Company’s 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 management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

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 December 31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Report of Management on Internal Control Over Financial Reporting

The management of the Company, including the Company’s Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934).

Management of the Company, including the Company’s Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2015. Management based this assessment on criteria for effective internal control over financial reporting described in the “Internal Control—Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on this assessment, management determined that, as of December 31, 2015, the Company maintained effective internal control over financial reporting.

Deloitte & Touche LLP, an independent registered public accounting firm, who audited the consolidated financial statements of the Company included in this Annual Report on Form 10-K , has also audited the effectiveness of the Company’s internal control over financial reporting as stated in its report appearing below.

February 25, 2016

52

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

R.R. Donnelley & Sons Company

Chicago, Illinois

We have audited the internal control over financial reporting of R.R. Donnelley & Sons Company and subsidiaries (the "Company") as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other personnel 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2015 of the Company and our report dated February 25, 2016 expressed an unqualified opinion on those financial statements.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois

February 25, 2016

53

ITEM 9B. OTHER INFORMATION  

None.

54

PART III

ITEM  10. DIRECTORS AND EXECUTIVE OFFICERS OF R.R. DONNELLEY & SONS COMPANY AND CORPORATE GOVERNANCE

Information regarding directors and executive officers of the Company is incorporated herein by reference to the descriptions under “Proposal 1: Election of Directors,” “The Board’s Committees and their Functions” and “Section 16(a) Beneficial Ownership Reporting Compliance” of the Company’s Proxy Statement for the Annual Meeting of Shareholders scheduled to be held May 19, 2016 (the “2016 Proxy Statement”). See also the information with respect to the Company’s executive officers at the end of Part I of this Annual Report on Form 10-K under the caption “Executive Officers of R.R. Donnelley & Sons Company.”

The Company has adopted a policy statement entitled Code of Ethics that applies to its chief executive officer and senior financial officers. In the event that an amendment to, or a waiver from, a provision of the Code of Ethics is made or granted, the Company intends to post such information on its web site, www.rrdonnelley.com. A copy of the Company’s Code of Ethics has been filed as Exhibit 14 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003.

ITEM 11. EXECUTIVE COMPENSATION

Information regarding executive and director compensation is incorporated by reference to the material under the captions “Compensation Discussion and Analysis,” “Human Resources Committee Report,” “Executive Compensation,” “Potential Payments Upon Termination or Change in Control,” and “Director Compensation” of the 2016 Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information regarding security ownership of certain beneficial owners and management is incorporated herein by reference to the material under the heading “Stock Ownership” of the 2016 Proxy Statement.

Equity Compensation Plan Information

Information as of December 31, 2015 concerning compensation plans under which RR Donnelley’s equity securities are authorized for issuance was as follows:

Equity Compensation Plan Information

Plan Category	Number of Securities to Be Issued upon Exercise of Outstanding Options, Warrants and Rights (in thousands) (1)		Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) (2)		Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (1)) (in thousands) (3)
Equity compensation plans approved by security holders (a)		6,700.0	$	19.66	5,652.0(c)

_____________________

(a) Includes 2,993,339 shares issuable upon the vesting of restricted stock units.

(b) Restricted stock units were excluded when determining the weighted-average exercise price of outstanding options, warrants and rights.

(c) All of these shares are available for issuance under the 2012 Performance Incentive Plan. The 2012 Performance Incentive Plan allows grants in the form of cash or bonus awards, stock options, stock appreciation rights, restricted stock, stock units or combinations thereof. The maximum number of shares of common stock that may be granted with respect to bonus awards, including performance awards or fixed awards in the form of restricted stock or other form, is 10,000,000 in the aggregate, of which 5,652,020 remain available for issuance.

ITEM  13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Information regarding certain relationships and related transactions and director independence is incorporated herein by reference to the material under the heading “Certain Transactions,” “The Board’s Committees and Their Functions” and “Corporate Governance—Independence of Directors” of the 2016 Proxy Statement.

55

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Information regarding principal accounting fees and services is incorporated herein by reference to the material under the heading “The Company’s Independent Registered Public Accounting Firm” of the 2016 Proxy Statement.

56

PART IV

ITEM  15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) 1. Financial Statements

The financial statements listed in the accompanying index (page F-1) to the financial statements are filed as part of this Annual Report on Form 10-K.

(b) Exhibits

The exhibits listed on the accompanying index (pages E-1 through E-3) are filed as part of this Annual Report on Form 10-K.

(c) Financial Statement Schedules omitted

Certain schedules have been omitted because the required information is included in the consolidated financial statements and notes thereto or because they are not applicable or not required.

57

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 25th day of February 2016.

R.R. DONNELLEY & SONS COMPANY
By:	/ S /     Daniel N. Leib
	Daniel N. Leib Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, on the 25th day of February 2016.

	Signatureand Title		Signatureand Title
/ S /    THOMAS J. QUINLAN, III		/ S /    JUDITH H. HAMILTON *
Thomas J. Quinlan, III President and Chief Executive Officer, Director (Principal Executive Officer)		Judith H. Hamilton Director
/ S /    DANIEL N. LEIB		/ S /    JEFFREY G. KATZ *
Daniel N. Leib Executive Vice President and Chief Financial Officer (Principal Financial Officer)		Jeffrey G. Katz Director
/ S /    ANDREW B. COXHEAD		/ S /    RICHARD K. PALMER *
Andrew B. Coxhead Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)		Richard K. Palmer Director
/ S /    SUSAN M. CAMERON *		/ S /    JOHN C. POPE *
Susan M. Cameron Director		John C. Pope Chairman of the Board, Director
/ S /    RICHARD L. CRANDALL *		/ S /    MICHAEL T. RIORDAN *
Richard L. Crandall Director		Michael T. Riordan Director
/ S /    SUSAN M. GIANINNO *		/ S /    OLIVER R. SOCKWELL *
Susan M. Gianinno Director		Oliver R. Sockwell Director

By:	/ S /Suzanne S. Bettman
	Suzanne S. Bettman As Attorney-in-Fact

* By Suzanne S. Bettman as Attorney-in-Fact pursuant to Powers of Attorney executed by the directors listed above, which Powers of Attorney have been filed with the Securities and Exchange Commission

58

ITEM 15(a).  INDEX TO FINANCIAL STATEMENTS

	Page
Consolidated Statements of Operations for each of the three years in the period ended December 31, 2015	F–	2
Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2015	F–	3
Consolidated Balance Sheets as of December 31, 2015 and 2014	F–	4
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2015	F–	5
Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2015	F–	6
Notes to Consolidated Financial Statements	F–	7
Report of Independent Registered Public Accounting Firm	F–	48
Unaudited Interim Financial Information	F–	49

F-1

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

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

	Year Ended December 31,
	2015			2014		2013
Products net sales	$	9,323.6		$	9,715.2	$	8,765.8
Services net sales		1,933.2			1,888.2		1,714.5
Total net sales		11,256.8			11,603.4		10,480.3
Products cost of sales (exclusive of depreciation and amortization)		7,282.3			7,581.6		6,816.9
Services cost of sales (exclusive of depreciation and amortization)		1,510.5			1,471.2		1,332.9
Total cost of sales		8,792.8			9,052.8		8,149.8
Products gross profit		2,041.3			2,133.6		1,948.9
Services gross profit		422.7			417.0		381.6
Total gross profit		2,464.0			2,550.6		2,330.5
Selling, general and administrative expenses (exclusive of depreciation and amortization)		1,300.0			1,427.0		1,181.5
Restructuring, impairment and other charges-net (Note 3)		122.6			133.7		133.5
Depreciation and amortization		454.0			474.0		435.8
Income from operations		587.4			515.9		579.7
Interest expense-net (Note 13)		276.0			282.1		261.4
Investment and other expense-net		43.6			9.6		27.4
Loss on debt extinguishment		—			77.1		81.9
Earnings before income taxes		267.8			147.1		209.0
Income tax expense (benefit) (Note 12)		129.4			26.3		(9.2	)
Net earnings		138.4			120.8		218.2
Less: (Loss) income attributable to noncontrolling interests		(12.7	)		3.4		7.0
Net earnings attributable to RR Donnelley common shareholders	$	151.1		$	117.4	$	211.2
Net earnings per share attributable to RR Donnelley common shareholders (Note 15):
Basic net earnings per share	$	0.73		$	0.59	$	1.16
Diluted net earnings per share	$	0.73		$	0.59	$	1.15
Weighted average number of common shares outstanding
Basic		205.6			198.5		181.9
Diluted		206.8			200.0		183.5

See accompanying Notes to Consolidated Financial Statements.

F-2

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	Year Ended December 31,
	2015			2014			2013
Net earnings	$	138.4		$	120.8		$	218.2
Other comprehensive (loss) income, net of tax (Note 16):
Translation adjustments		(55.7	)		(45.2	)		(22.8	)
Adjustmentfor net periodic pension and other postretirementbenefitsplancost		34.8			(240.9	)		563.7
Change in fair value of derivatives		0.1			0.1			0.4
Other comprehensive (loss) income		(20.8	)		(286.0	)		541.3
Comprehensive income (loss)		117.6			(165.2	)		759.5
Less: comprehensive (loss) income attributable to noncontrolling interests		(13.9	)		2.9			7.2
Comprehensive income (loss) attributable to RR Donnelleycommonshareholders	$	131.5		$	(168.1	)	$	752.3

See accompanying Notes to Consolidated Financial Statements.

F-3

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

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

	December 31,
	2015			2014
ASSETS
Cash and cash equivalents	$	389.6		$	527.9
Receivables, less allowances for doubtful accounts of $41.5 in 2015 (2014 - $44.3) (Note 5)		2,000.4			2,033.8
Inventories (Note 6)		592.0			586.2
Prepaid expenses and other current assets		119.7			225.4
Total current assets		3,101.7			3,373.3
Property, plant and equipment-net (Note 7)		1,448.1			1,515.5
Goodwill (Note 4)		1,743.6			1,706.6
Other intangible assets-net (Note 4)		438.0			423.7
Deferred income taxes (Note 12)		178.2			234.1
Other noncurrent assets		369.7			355.6
Total assets	$	7,279.3		$	7,608.8
LIABILITIES
Accounts payable	$	1,322.3		$	1,296.6
Accrued liabilities (Note 9)		780.4			867.3
Short-term and current portion of long-term debt (Note 13)		234.6			203.4
Total current liabilities		2,337.3			2,367.3
Long-term debt (Note 13)		3,188.3			3,398.6
Pension liabilities (Note 11)		514.4			616.1
Other postretirement benefits plan liabilities (Note 11)		168.8			210.8
Other noncurrent liabilities		373.9			395.6
Total liabilities		6,582.7			6,988.4
Commitments and Contingencies (Note 10)
EQUITY
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: 267.0 shares in 2015 (2014 - 259.0 shares)		333.7			323.7
Additional paid-in-capital		3,164.3			3,041.5
Accumulated deficit		(620.6	)		(559.1	)
Accumulated other comprehensive loss		(793.2	)		(773.6	)
Treasury stock, at cost, 58.2 shares in 2015 (2014 - 59.2 shares)		(1,401.5	)		(1,438.7	)
Total RR Donnelley shareholders' equity		682.7			593.8
Noncontrolling interests		13.9			26.6
Total equity		696.6			620.4
Total liabilities and equity	$	7,279.3		$	7,608.8

See accompanying Notes to Consolidated Financial Statements.

F-4

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	Year Ended December 31,
	2015			2014			2013
OPERATING ACTIVITIES
Net earnings	$	138.4		$	120.8		$	218.2
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment charges		36.5			47.3			21.5
Depreciation and amortization		454.0			474.0			435.8
Provision for doubtful accounts receivable		15.4			16.9			18.2
Share-based compensation		17.3			17.7			19.9
Deferred income taxes		(36.1	)		(87.0	)		(41.1	)
Changes in uncertain tax positions		1.3			(3.0	)		(18.6	)
Loss (gain) on investments and other assets - net		14.3			(3.9	)		21.5
Loss related to Venezuela currency remeasurement - net		30.3			18.4			3.2
Loss on debt extinguishment		—			77.1			81.9
Net pension and other postretirement benefits plan income		(44.5	)		(48.7	)		(18.3	)
Loss on pension settlement		—			95.7			—
Gain on bargain purchase		—			(9.5	)		—
Other		22.1			44.0			(5.1	)
Changes in operating assets and liabilities - net of acquisitions:
Accounts receivable - net		(17.6	)		(49.6	)		13.4
Inventories		16.0			(14.1	)		5.3
Prepaid expenses and other current assets		26.3			(10.8	)		(4.6	)
Accounts payable		61.0			81.4			(66.0	)
Income taxes payable and receivable		46.9			(3.0	)		(38.1	)
Accrued liabilities and other		(104.0	)		0.9			77.3
Pension and other postretirement benefits plan contributions		(25.6	)		(41.9	)		(29.6	)
Net cash provided by operating activities		652.0			722.7			694.8
INVESTING ACTIVITIES
Capital expenditures		(207.6	)		(223.6	)		(216.6	)
Acquisitions of businesses, net of cash acquired		(118.2	)		(380.8	)		0.4
Disposition of businesses		0.6			(1.6	)		(12.0	)
Proceeds from sales of investments and other assets		27.1			42.7			13.0
Transfers (to)/from restricted cash		(0.5	)		(12.3	)		3.4
Other investing activities		(18.5	)		(1.6	)		(0.6	)
Net cash used in investing activities		(317.1	)		(577.2	)		(212.4	)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		—			400.0			1,197.8
Net change in short-term debt		11.9			(0.4	)		(3.2	)
Payments of current maturities and long-term debt		(272.7	)		(811.5	)		(830.4	)
Debt issuance costs		—			(13.7	)		(20.4	)
Dividends paid		(212.6	)		(203.1	)		(188.5	)
Proceeds (payments) to settle forward contracts		33.3			24.0			(38.0	)
Other financing activities		3.6			(0.4	)		5.5
Net cash (used in) provided by financing activities		(436.5	)		(605.1	)		122.8
Effect of exchange rate on cash and cash equivalents		(36.7	)		(40.9	)		(7.5	)
Net (decrease) increase in cash and cash equivalents		(138.3	)		(500.5	)		597.7
Cash and cash equivalents at beginning of year		527.9			1,028.4			430.7
Cash and cash equivalents at end of period	$	389.6		$	527.9		$	1,028.4
Supplemental non-cash disclosure:
Issuances of 17.0 million shares of RR Donnelley stock for acquisitions of businesses	$	—		$	319.0		$	—
Issuance of 8.1 million shares of RR Donnelley stock for acquisitions of businesses	$	155.2		$	—		$	—
Settlement of accounts receivable for acquisition of a business	$	8.6		$	—		$	—

See accompanying Notes to Consolidated Financial Statements.

F-5

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

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions)

	Common Stock				Additional Paid-in-			Treasury Stock						Retained Earnings (Accumulated			Accumulated Other Comprehensive			Total RR Donnelley's Shareholders'			Noncontrolling			Total
	Shares		Amount		Capital			Shares			Amount			Deficit)			Loss			Equity			Interests			Equity
Balance at January 1, 2013		243.0	$	303.7	$	2,839.4			(62.6	)	$	(1,565.0	)	$	(496.1	)	$	(1,029.2	)	$	52.8		$	15.9		$	68.7
Net earnings															211.2						211.2			7.0			218.2
Other comprehensive income																		541.1			541.1			0.2			541.3
Share-based compensation						19.9															19.9						19.9
Issuance of share-based awards, net of withholdings and other						(56.9	)		1.4			52.2									(4.7	)					(4.7	)
Cash dividends paid															(188.5	)					(188.5	)					(188.5	)
Distributions to noncontrolling interests																					—			(1.2	)		(1.2	)
Balance at December 31, 2013		243.0	$	303.7	$	2,802.4			(61.2	)	$	(1,512.8	)	$	(473.4	)	$	(488.1	)	$	631.8		$	21.9		$	653.7
Net earnings															117.4						117.4			3.4			120.8
Other comprehensive loss																		(285.5	)		(285.5	)		(0.5	)		(286.0	)
Share-based compensation						17.7															17.7						17.7
Issuances of common stock		16.0		20.0		280.7															300.7						300.7
Issuances of treasury stock						(14.3	)		1.0			32.6									18.3						18.3
Issuance of share-based awards, net of withholdings and other						(45.0	)		1.0			41.5									(3.5	)					(3.5	)
Cash dividends paid															(203.1	)					(203.1	)					(203.1	)
Noncontrolling interests in acquired business																					—			2.7			2.7
Distributions to noncontrolling interests																					—			(0.9	)		(0.9	)
Balance at December 31, 2014		259.0	$	323.7	$	3,041.5			(59.2	)	$	(1,438.7	)	$	(559.1	)	$	(773.6	)	$	593.8		$	26.6		$	620.4
Net earnings															151.1						151.1			(12.7	)		138.4
Other comprehensive loss																		(19.6	)		(19.6	)		(1.2	)		(20.8	)
Share-based compensation						17.3															17.3						17.3
Issuances of common stock		8.0		10.0		144.2															154.2						154.2
Issuances of treasury stock						(1.2	)		0.1			2.2									1.0						1.0
Issuance of share-based awards, net of withholdings and other						(37.5	)		0.9			35.0									(2.5	)					(2.5	)
Cash dividends paid															(212.6	)					(212.6	)					(212.6	)
Noncontrolling interests in acquired business																					—			4.6			4.6
Noncontrolling interests in disposed businesses																					—			(2.4	)		(2.4	)
Distributions to noncontrolling interests																					—			(1.0	)		(1.0	)
Balance at December 31, 2015		267.0	$	333.7	$	3,164.3			(58.2	)	$	(1,401.5	)	$	(620.6	)	$	(793.2	)	$	682.7		$	13.9		$	696.6

See accompanying Notes to Consolidated Financial Statements.

F-6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)

Note 1. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation —The accompanying consolidated 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”). All intercompany transactions have been eliminated in consolidation. The accounts of businesses acquired during 2015 and 2014 are included in the consolidated financial statements from the dates of acquisition. There were no acquisitions during the year ended December 31, 2013 (see Note 2).

Nature of Operations —The Company helps organizations communicate more effectively by working to create, manage, produce, distribute and process content on behalf of our customers. The Company assists customers in developing and executing multichannel communication strategies that engage audiences, reduce costs, drive revenues and increase compliance. R.R. Donnelley’s innovative technologies enhance digital and print communications to deliver integrated messages across multiple media to highly targeted audiences at optimal times for clients in virtually every private and public sector. Strategically located operations provide local service and responsiveness while leveraging the economic, geographic and technological advantages of a global organization.

Proposed Spinoff Transactions —On August 4, 2015, the Company announced that its Board of Directors intends to create three independent public companies: (i) a financial communications services company (“Donnelley Financial Solutions”), (ii) a publishing and retail-centric print services company (“LSC Communications”), and (iii) a multichannel communications management company (“RR Donnelley & Sons Company”). Donnelley Financial Solutions is expected to consist of the Company’s current financial reporting unit of the Company’s Strategic Services segment.  LSC Communications is expected to consist of the Company’s current Publishing and Retail Services segment as well as the office products reporting unit from the Company’s Variable Print segment, substantially all of the operations currently within the Europe reporting unit of the Company’s International segment, certain Mexican operations currently within the Latin America reporting unit of the Company’s International segment and the co-mail and related list services operations currently within the logistics reporting unit of the Company’s Strategic Services segment.  RR Donnelley & Sons Company is expected to consist of the current Variable Print segment except for the office products reporting unit that will become part of LSC Communications, the logistics reporting unit within the current Strategic Services segment except for the operations that will become part of LSC Communications, the sourcing and digital and creative solutions reporting units within the current Strategic Services segment, and the current International segment except for substantially all of the Europe reporting unit and certain Mexican operations that will become part of LSC Communications. The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of shares of stock in two new, independent, publicly traded companies, Donnelley Financial Solutions and LSC Communications. Immediately following the completion of the transactions existing RR Donnelley shareholders will own shares in all three companies.

The transactions are subject to customary conditions, including obtaining rulings from the Internal Revenue Service and/or tax opinions, execution of inter-company agreements and final approval by the Company’s Board of Directors. The Company expects to complete the transactions in October 2016, but there can be no assurance that the transactions will be completed on the anticipated timeline or at all or that the terms of the transactions will not change.

Upon separation, the historical results of Donnelley Financial Solutions and LSC Communications will be presented as discontinued operations.

Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, self-insurance reserves, taxes, restructuring and other provisions and contingencies.

Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be permanently reinvested. Since January 1, 2010, the three-year cumulative inflation for Venezuela using the blended Consumer Price Index and National Consumer Price Index has exceeded 100%. As a result, Venezuela’s economy is considered highly inflationary and the financial statements of the Company’s Venezuelan entities are remeasured as if the functional currency were the U.S. Dollar. See Note 21 for further discussion.

F-7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Fair Value Measurements— Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its foreign exchange forward contracts, interest rate swaps, pension plan assets and other postretirement plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

Revenue Recognition —The Company recognizes revenue for the majority of its products upon transfer of title and the passage of the risk of ownership, which is generally upon shipment to the customer. Contracts generally specify F.O.B. shipping point terms. Under agreements with certain customers, custom products may be stored by the Company for future delivery. In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides. In certain of these cases, delivery and billing schedules are outlined in the customer agreement and product revenue is recognized when manufacturing is complete, title and risk of ownership transfer to the customer, and there is a reasonable assurance as to collectability. Because the majority of products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale.  

Revenue from services is recognized as services are performed. For the Company’s logistics operations, whose operations include the delivery of printed material and other products, the Company recognizes revenue upon completion of the delivery of services. Within the Company’s financial operations, which serve the global financial services end market, the Company files highly customized materials such as regulatory S-filings and initial public offerings with the SEC on behalf of its customers, and performs XBRL and EDGAR-related services. Revenue is recognized for these services upon completion of the service performed or following final delivery of the related printed product. Within the Company’s business process outsourcing operations, the Company provides various outsourcing services. Depending on the nature of the service performed, revenue is recognized for outsourcing services either as services are rendered or upon completion of the service. Revenues related to the Company’s digital and creative solutions operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer.

The Company records deferred revenue in situations where amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met.

Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for third-party shipping and handling costs as well as certain postage costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross. In the Company’s Global Turnkey Solutions operations, contracts are evaluated using various criteria to determine if revenue for components and other materials should be recognized on a gross or net basis. In general, these revenues are recognized on a gross basis if the Company has control over selecting vendors and pricing, is the primary obligor in the arrangement, bears all credit risk and bears the risk of loss for inventory in its possession. Revenue from contracts that do not meet these criteria is recognized on a net basis. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis.

The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

By-product recoveries —The Company records the sale of by-products as a reduction of cost of sales.

Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations.

F-8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s consolidated net sales in 2015, 2014 or 2013. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 5 for details of activity affecting the allowance for doubtful accounts receivable.

Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. The cost of 57.6% and 59.8% of the inventories at December 31, 2015 and 2014, respectively, has been determined using the Last-In, First-Out (LIFO) method. This method is intended to reflect the effect of inventory replacement costs within results of operations; accordingly, charges to cost of sales generally reflect recent costs of material, labor and factory overhead. The Company uses an external-index method of valuing LIFO inventories. The remaining inventories, primarily related to certain acquired and international operations, are valued using the First-In, First-Out (FIFO) or specific identification methods.

Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.

Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.

Goodwill —Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. The annual goodwill impairment test for 2013 was performed based on the Company’s previous organization structure prior to the reorganization of the Company’s reportable segments in the fourth quarter of 2013.

For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed.

For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. If the carrying value exceeds the reporting unit’s fair value, the Company performs an additional fair value measurement calculation to determine the impairment loss, which is charged to operations in the period identified. See Note 3 for further discussion.

The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s interim review for indicators of impairment as of December 31, 2015, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying value.

Amortization —Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of five years. Amortization expense, primarily related to internally-developed software and excluding amortization expense related to other intangible assets, was $44.0 million, $41.2 million and $34.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Deferred debt issuance costs are amortized over the term of the related debt. Other intangible assets, except for those intangible assets with indefinite lives, are recognized separately from goodwill and are amortized over their estimated useful lives. Other intangible assets with indefinite lives are not amortized. See Note 4 for further discussion of other intangible assets and the related amortization expense.

F-9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Financial Instruments —The Company uses derivative financial instruments to hedge exposures to interest rate and foreign exchange fluctuations in the ordinary course of business.

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities on the balance sheet at their respective fair values with unrealized gains and losses recorded in comprehensive income (loss), net of applicable income taxes, or in the results of operations, depending on the purpose for which the derivative is held. 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 results 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 results of operations. At 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 of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the results of operations.

The Company’s foreign exchange forward contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign exchange forward contracts on a net basis when possible. Foreign exchange forward contracts that can be settled on a net basis are presented net in the Consolidated Balance Sheets. Interest rate swaps are settled on a gross basis and presented gross in the Consolidated Balance Sheets. See Note 14 for further discussion.

Share-Based Compensation —The Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options, restricted stock units and performance share units. The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. See Note 17 for further discussion.

Pension and Other Postretirement Benefits Plans —The Company records annual income and expense amounts relating to its pension and other postretirement benefit plans based on calculations which include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, turnover rates and healthcare cost trend rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. See Note 11 for further discussion.

Taxes on Income —Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company recognizes deferred tax liabilities related to taxes on certain foreign earnings that are not considered to be permanently reinvested. No deferred tax liabilities are recognized for foreign earnings that are considered to be permanently reinvested. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its 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 tax liabilities.

The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s financial statements. The Company adjusts such reserves upon changes in circumstances that would cause a change to the estimate of the ultimate liability, upon effective settlement or upon the expiration of the statute of limitations, in the period in which such event occurs. See Note 12 for further discussion.

F-10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 2. Acquisitions and Dispositions

2015 Acquisitions

On June 8, 2015, the Company acquired Courier Corporation (“Courier”), a leader in digital printing and publishing primarily in the United States, specializing in educational, religious and trade books. The acquisition expanded the Company’s digital printing and content management capabilities. The purchase price for Courier was $137.3 million in cash and 8.0 million shares of RR Donnelley common stock, or a total transaction value of $291.5 million based on the Company’s closing share price on June 5, 2015, plus the assumption of Courier’s debt of $78.2 million. Courier had $20.9 million of cash as of the date of acquisition. Immediately following the acquisition, the Company repaid substantially all of the debt assumed. Courier’s book manufacturing operations are included in the Publishing and Retail Services segment, publishing operations are included in the Strategic Services segment and Brazilian operations are included in the International segment.

For the year ended December 31, 2015, the Company’s Consolidated Financial Statements included net sales of $185.6 million and a loss before income taxes of $13.1 million related to the Courier acquisition, including restructuring, impairment and other charges of $31.3 million and a charge of $10.8 million resulting from an inventory purchase accounting adjustment.  

For the year ended December 31, 2015, the Company recorded $14.3 million of acquisition-related expenses associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Consolidated Statements of Operations.

The Courier acquisition was recorded by allocating the cost of the acquisition to the assets acquired, including other intangible assets, based on their estimated fair values at the acquisition date.  The excess of the cost over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill associated with this acquisition is primarily attributable to the synergies expected to arise as a result of the acquisition.

In addition to the acquisition of Courier, the Company completed three insignificant acquisitions in 2015, one of which included the settlement of accounts receivable in exchange for the acquisition of the business.  

The tax deductible goodwill related to acquisitions was $17.3 million.

Based on the valuations, the final purchase price allocation for the Courier acquisition as well as the purchase price allocation for three insignificant acquisitions was as follows:

Accounts receivable	$	36.2
Inventories		59.0
Prepaid expenses and other current assets		38.8
Property, plant and equipment		163.8
Other intangible assets		108.8
Other noncurrent assets		7.9
Goodwill		66.3
Accounts payable and accrued liabilities		(24.6	)
Other noncurrent liabilities		(10.5	)
Deferred taxes-net		(83.7	)
Total purchase price-net of cash acquired		362.0
Less: debt assumed		80.2
Less: settlement of accounts receivable for acquisition of a business		8.6
Less: value of common stock issued		155.2
Net cash paid	$	118.0

F-11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The fair values of other intangible assets, technology and goodwill associated with the acquisition of Courier were determined to be Level 3 under the fair value hierarchy.  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	$	98.4	Excess earnings	Discount rate Attrition rate	14.0% - 17.0% 0.0% - 7.5%
Trade names		10.1	Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	12.0% 0.3% - 1.0%
Technology	1.6		Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	11.0% 15.0%
Non-compete agreement		0.3	Excess earnings	Discount rate		17.0%

The fair values of property, plant and equipment associated with the Courier acquisition were determined to be Level 3 under the fair value hierarchy and were estimated using either the market approach, if a secondhand market existed, or cost approach.

2015 Disposition

On April 29, 2015, the Company sold its 50.1% interest in its Venezuelan operating entity. The proceeds were de minimis, and the sale resulted in a net loss of $14.7 million, which was recognized in net investment and other expense in the Consolidated Statement of Operations for the year ended December 31, 2015. The Company’s Venezuelan operations had net sales of $16.3 million and a loss before income taxes of $38.4 million, including the net loss as a result of the sale, for the year ended December 31, 2015. For the years ended December 31, 2014 and 2013, the Company’s Venezuelan operations had net sales of $101.5 million and earnings before income taxes of $4.3 million and net sales of $97.5 million and earnings before income taxes of $16.0 million, respectively. The operations of the Venezuela business were included in the International segment.

2014 Acquisitions

On March 25, 2014, the Company acquired substantially all of the North American operations of Esselte Corporation (“Esselte”), a developer and manufacturer of nationally branded and private label office and stationery products. The acquisition, combined with the Company’s existing products, created a more competitive and efficient office products supplier capable of supplying enhanced offerings across the combined customer base. The purchase price for Esselte included $82.3 million in cash and 1.0 million shares of RR Donnelley common stock, or a total transaction value of $100.6 million based on the Company’s closing share price on March 24, 2014. Esselte’s operations are included in the Variable Print segment.

On March 10, 2014, the Company acquired the assets of MultiCorpora R&D Inc. and MultiCorpora International Inc. (together “MultiCorpora”) for approximately $6.0 million. MultiCorpora is an international provider of translation technology solutions. The acquisition of MultiCorpora expanded the capabilities of the Company’s translation services offering which supports clients’ multi-lingual communications. MultiCorpora’s operations are included in the Strategic Services segment.

On January 31, 2014, the Company acquired Consolidated Graphics, Inc. (“Consolidated Graphics”), a provider of digital and commercial printing, fulfillment services, print management and proprietary Internet-based technology solutions, with operations in North America, Europe and Asia. The acquisition enhanced the Company’s ability to provide integrated communications solutions for its customers. The purchase price for Consolidated Graphics was $359.9 million in cash and 16.0 million shares of RR Donnelley common stock, or a total transaction value of $660.6 million based on the Company’s closing share price on January 30, 2014, plus the assumption of Consolidated Graphics’ debt of $118.4 million. Immediately following the acquisition, the Company repaid substantially all of the debt assumed. Consolidated Graphics’ operations are included in the Variable Print segment, with the exception of operations in the Czech Republic and Japan which are included in the International segment.

For the year ended December 31, 2014, the Company recorded $8.6 million of acquisition-related expenses associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Consolidated Statements of Operations.

F-12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The Esselte, MultiCorpora and Consolidated Graphics acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including other intangible assets, based on their estimated fair values at the applicable acquisition date. The excess of the cost of the MultiCorpora and Consolidated Graphics acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill associated with these acquisitions is primarily attributable to the synergies expected to arise as a result of the acquisitions.

For Esselte, the fair value of the identifiable net assets acquired of approximately $110.1 million exceeded the purchase price of $100.6 million, resulting in a bargain purchase gain of $9.5 million for the year ended December 31, 2014, which was recorded in net investment and other expense. The gain on the bargain purchase was primarily attributable to the Company’s ability to utilize certain tax operating losses.

The tax deductible goodwill related to the Consolidated Graphics, Esselte and MultiCorpora acquisitions was $73.4 million.

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	$	242.0
Inventories		89.6
Prepaid expenses and other current assets		17.5
Property, plant and equipment		337.0
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		828.0
Less: debt assumed		118.4
Less: value of common stock issued		319.0
Less: gain on bargain purchase		9.5
Net cash paid	$	381.1

The fair values of other intangible assets, technology and goodwill associated with the acquisitions of Esselte, MultiCorpora and Consolidated Graphics were determined to be Level 3 under the fair value hierarchy. 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 (pre-tax)	19.0% 0.5% - 1.5%
Technology	1.1	Excess earnings	Discount rate	17.0%

The fair values of property, plant and equipment associated with the Consolidated Graphics, Esselte, and MultiCorpora acquisitions were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated using either the cost or market approach, if a secondhand market existed.

2014 Dispositions

On August 15, 2014, the Company sold the assets and liabilities of Journalism Online, LLC (“Journalism Online”), a provider of online subscription management services, for net proceeds of $10.5 million, all of which was received as of June 30, 2015, resulting in a gain of $11.2 million during the year ended December 31, 2014. As a result of a final sale price adjustment in accordance with the agreement, a $0.2 million loss was recognized during the year ended December 31, 2015, resulting in a total net gain of $11.0 million. The gain and loss were included in net investment and other expense in the Consolidated Statement of Operations. The operations of the Journalism Online business were included in the Strategic Services segment.

F-13

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

On August 11, 2014, the Company’s subsidiary, RR Donnelley Argentina S.A. (“RRDA”), filed for bankruptcy liquidation in bankruptcy court in Argentina. The bankruptcy petition was approved by the court shortly thereafter and a bankruptcy trustee was appointed. As a result of the bankruptcy liquidation, the Company recorded a loss of $16.4 million in net investment and other expense for the year ended December 31, 2014. Effective as of the court’s approval, the operating results of RRDA are no longer included in the Company’s consolidated results of operations. RRDA had net sales of $22.1 million and a loss before income taxes of $3.4 million and net sales of $55.8 million and a loss before income taxes of $2.8 million for the years ended December 31, 2014 and 2013, respectively. The operations of RRDA were included in the International segment.

On February 7, 2014, the Company sold the assets and liabilities of Office Tiger Global Real Estate Service Inc. (“GRES”), its commercial and residential real estate advisory services, for net proceeds of $1.8 million and a loss of $0.8 million, which was recognized in net investment and other expense in the Consolidated Statements of Operations. The operations of the GRES business were included in the International segment.

2013 Disposition

During the fourth quarter of 2013, the Company sold the assets and liabilities of R.R. Donnelley SAS (“MRM France”), its direct mail business located in Cosne sur Loire, France, for a loss of $17.9 million, which was recognized in net investment and other expense in the Consolidated Statements of Operations. The loss included cash incentive payments due to the purchaser of $18.8 million, of which $16.4 million was paid as of December 31, 2014 with the remaining balance to be paid during the first quarter of 2016. The operations of the MRM France business were included in the International segment.

For the year ended December 31, 2013, the Company recorded $5.9 million of acquisition-related expenses associated with acquisitions contemplated or completed in subsequent periods within selling, general and administrative expenses in the Consolidated Statements of Operations.

Pro forma results

The following unaudited pro forma financial information for the years ended December 31, 2015 and 2014 presents the combined results of operations of the Company and the acquisitions described above, as if the acquisitions had occurred as of January 1 of the year prior to acquisition.

The unaudited pro forma net sales are 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.

	Year ended
	December 31,
	2015		2014
Net sales	$	11,380.1	$	12,033.7
Net earnings attributable to RR Donnelley common shareholders		190.7		131.7
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.91	$	0.63
Diluted	$	0.91	$	0.63

The following table outlines unaudited pro forma financial information for the years ended December 31, 2015 and 2014:

	Year ended
	December 31,
	2015		2014
Amortization of purchased intangibles	$	82.9	$	89.6
Restructuring, impairment and other charges		93.7		129.6

F-14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the years ended December 31, 2015 and 2014 were as follows:

	Year ended
	December 31,
	2015			2014
Depreciation and amortization of purchased assets, pre-tax	$	3.9		$	1.4
Acquisition-related expenses, pre-tax		18.9			16.0
Restructuring, impairment and other charges, pre-tax		29.4			8.1
Inventory fair value adjustments, pre-tax		10.8			3.5
Other pro forma adjustments, pre-tax		1.2			(3.2	)
Income taxes		(16.6	)		(1.9	)

Note 3. Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges Recognized in Results of Operations

2015	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	6.5	$	4.6	$	11.1	$	1.0	$	19.4	$	31.5
Variable Print		3.7		6.2		9.9		9.7		1.8		21.4
Strategic Services		6.7		2.1		8.8		0.9		3.4		13.1
International		24.2		3.5		27.7		24.5		—		52.2
Corporate		3.2		1.2		4.4		—		—		4.4
Total	$	44.3	$	17.6	$	61.9	$	36.1	$	24.6	$	122.6

Restructuring and Impairment Charges

For the year ended December 31, 2015, the Company recorded net restructuring charges of $44.3 million for employee termination costs for 1,939 employees, of whom 1,719 were terminated as of December 31, 2015. These charges primarily related to two facility closures in the International segment, one facility closure in the Variable Print segment, one facility closure in the Publishing and Retail Services segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $17.6 million for the year ended December 31, 2015. For the year ended December 31, 2015, the Company also recorded $6.2 million of net impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

In the third quarter of 2015, as the result of the Company’s interim goodwill impairment review, the Company recorded non-cash charges of $13.7 million and $4.3 million to recognize the impairment of goodwill in the Europe and Latin America reporting units, respectively, both of which are within the International segment. The goodwill impairment charge in the Europe reporting unit was due to the announced reorganization of certain operations which resulted in a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to the expectations as of the October 31, 2014 annual goodwill impairment test. The goodwill impairment charges were determined using Level 3 inputs, including discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions in valuing the significant tangible and intangible assets.

During the year ended December 31, 2015, the Company recorded non-cash charges of $11.9 million for the impairment of intangible assets, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships. The impairment of the customer relationship assets was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability.

F-15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Other Charges

For the year ended December 31, 2015, the Company recorded charges of $24.6 million, including integration charges of $19.1 million for payments made to certain Courier employees upon the termination of Courier’s executive severance plan immediately prior to the acquisition and $5.5 million of charges for multi-employer pension plan withdrawal obligations unrelated to facility closures. The total liabilities for the withdrawal obligations associated with the Company’s decision to withdraw from all multi-employer pension plans included in accrued liabilities and other noncurrent liabilities are $11.3 million and $82.0 million, respectively, as of December 31, 2015. See Note 11 for further discussion of multi-employer pension plans.

The Company’s withdrawal liabilities could be affected by the financial stability of other employers participating in the plans and any decisions by those employers to withdraw from the plans in the future. While it is not possible to quantify the potential impact of future events or circumstances, reductions in other employers’ participation in multi-employer pension plans, including certain plans from which the Company has previously withdrawn, could have a material impact on the Company’s previously estimated withdrawal liabilities, consolidated results of operations, financial position or cash flows.

As a result of the acquisition of Courier, the Company participates in two multi-employer pension plans, one of which the Company’s contributions are approximately 85% of the total plan contributions. Both plans are estimated to be underfunded and have a Pension Protection Act zone status of critical (“red”). Red status identifies plans that are less than 65% funded.

2014	Employee Terminations			Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	(0.2	)	$	6.4	$	6.2	$	20.8	$	23.7	$	50.7
Variable Print		17.2			9.2		26.4		10.8		7.6		44.8
Strategic Services		3.5			2.1		5.6		1.8		4.2		11.6
International		7.3			1.3		8.6		13.7		—		22.3
Corporate		2.5			1.8		4.3		—		—		4.3
Total	$	30.3		$	20.8	$	51.1	$	47.1	$	35.5	$	133.7

Restructuring and Impairment Charges

For the year ended December 31, 2014, the Company recorded net restructuring charges of $30.3 million for employee termination costs for 654 employees, substantially all of whom were terminated as of December 31, 2015. These charges primarily related to the integration of Consolidated Graphics, including the closure of seven Consolidated Graphics facilities as well as one additional facility closure within the Variable Print segment, one facility closure within the Publishing and Retail Services segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $20.8 million for the year ended December 31, 2014, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures. For the year ended December 31, 2014, the Company also recorded $14.0 million of impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

As a result of the Company’s annual goodwill impairment test, the Company recorded non-cash charges of $18.1 million to recognize the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit within the Publishing and Retail Services segment. The goodwill impairment charges resulted from a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to expectations as of the last annual goodwill impairment test. The lower expectations for the magazines, catalogs and retail inserts reporting unit were due to accelerating volume declines and increasing price pressures resulting from declining demand, primarily in catalogs and magazines.  Revenue and income from operations in the magazines, catalogs and retail inserts reporting unit for the year ended December 31, 2014 were lower than previous expectations due to volume declines and price pressures. The goodwill impairment charges were determined using Level 3 inputs, including discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions in valuing the significant tangible and intangible assets.

F-16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

During the fourth quarter of 2014, the Company recorded non-cash impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively. The impairment of the customer relationship intangible assets resulted from a decline in expected future revenue and certain customer losses in the Canada reporting unit, the loss of certain customers in the commercial and digital print reporting unit and a decline in Latin America’s expected future capital markets transactions revenue in the financial reporting unit. During the year ended December 31, 2014, the Company also recorded non-cash charges of $1.4 million related to the impairment of trade names in the commercial and digital print reporting unit within the Variable Print segment as a result of facility closures. The impairment of the customer relationship assets was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability.

Other Charges

For the year ended December 31, 2014, the Company recorded charges of $35.5 million as a result of its decision to withdraw from all multi-employer pension plans serving facilities that are currently operating. These charges for multi-employer pension plan withdrawal obligations, unrelated to facility closures, represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. The total liabilities for the withdrawal obligations associated with the Company’s decision to withdraw from all multi-employer pension plans included in accrued liabilities and other noncurrent liabilities are $14.9 million and $88.1 million, respectively, as of December 31, 2014. See Note 11 for further discussion of multi-employer pension plans.

2013	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	17.0	$	14.1	$	31.1	$	12.3	$	30.3	$	73.7
Variable Print		2.2		12.5		14.7		0.9		—		15.6
Strategic Services		2.8		2.0		4.8		6.3		8.1		19.2
International		14.3		3.6		17.9		1.0		—		18.9
Corporate		4.1		1.6		5.7		0.4		—		6.1
Total	$	40.4	$	33.8	$	74.2	$	20.9	$	38.4	$	133.5

Restructuring and Impairment Charges

For the year ended December 31, 2013, the Company recorded net restructuring charges of $40.4 million for employee termination costs for 1,382 employees, allof whom were terminated as of December 31, 2015. These charges primarily related to the closing of two manufacturing facilities within the Publishing and Retail Services segment and one manufacturing facility within the Variable Print segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $33.8 million for the year ended December 31, 2013, of which $14.7 million related to multi-employer pension plan complete or partial withdrawal charges primarily attributable to manufacturing facility closures. For the year ended December 31, 2013, the Company also recorded $17.6 million of impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

During the fourth quarter of 2013, the Company recorded non-cash charges of $3.3 million related to the impairment of acquired customer relationship intangible assets in the financial reporting unit within the Strategic Services segment. The impairment of the acquired customer relationship intangible assets resulted from declines in compliance services volume from these relationships. The impairment of the acquired customer relationship intangible assets was determined using Level 3 inputs and estimated based on a cash flow analysis, which included management’s assumptions related to future revenues and profitability. See Note 8 for further discussion of these Level 3 inputs.

F-17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Other Charges

For the year ended December 31, 2013, the Company recorded charges of $38.4million as a result of its decision to withdraw from certain multi-employer pension plans. These charges for multi-employer pension plan withdrawal obligations, unrelated to facility closures, represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. The liabilities for these withdrawal obligations of $38.4 million were included in other noncurrent liabilities as of December 31, 2013. See Note 11 for further discussion of multi-employer pension plans.

Restructuring Reserve

The restructuring reserve as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	December 31, 2014		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2015
Employee terminations	$	13.0	$	44.3	$	(1.5	)	$	(35.6	)	$	20.2
Multi-employer pension plan withdrawal obligations		34.6		1.9		1.4			(5.0	)		32.9
Lease terminations and other		15.1		15.7		(0.1	)		(20.1	)		10.6
Total	$	62.7	$	61.9	$	(0.2	)	$	(60.7	)	$	63.7

The current portion of restructuring reserves of $29.1 million at December 31, 2015 was included in accrued liabilities, while the long-term portion of $34.6 million, primarily related to multi-employer pension plan withdrawal obligations related to facility closures and lease termination costs, was included in other noncurrent liabilities at December 31, 2015.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by December 2016.

Payments on all of the Company’s multi-employer pension plan withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to multi-employer pension plan withdrawals. See Note 11 for further discussion on multi-employer pension plans.

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 charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements.

The restructuring reserve as of December 31, 2014 and 2013, and changes during the year ended December 31, 2014, were as follows:

	December 31, 2013		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2014
Employee terminations	$	19.7	$	30.3	$	0.4		$	(37.4	)	$	13.0
Multi-employer pension plan withdrawal obligations		36.8		3.0		(0.6	)		(4.6	)		34.6
Lease terminations and other		21.1		17.8		1.3			(25.1	)		15.1
Total	$	77.6	$	51.1	$	1.1		$	(67.1	)	$	62.7

The current portion of restructuring reserves of $22.3 million at December 31, 2014 was included in accrued liabilities, while the long-term portion of $40.4 million, primarily related to multi-employer pension plan complete or partial withdrawal obligations related to facility closures and lease termination costs, was included in other noncurrent liabilities at December 31, 2014.

Payments associated with the employee terminations reflected in the above table were substantially completed by December 2015.  

F-18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 4. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows:

	Publishing and Retail Services			Variable Print			Strategic Services			International			Total
Net book value as of January 1, 2014
Goodwill	$	688.0		$	1,638.6		$	1,005.4		$	1,275.9		$	4,607.9
Accumulated impairment losses		(669.9	)		(1,105.2	)		(243.5	)		(1,153.0	)		(3,171.6	)
Total		18.1			533.4			761.9			122.9			1,436.3
Acquisitions		—			276.2			3.4			20.5			300.1
Foreign exchange and other adjustments		—			(0.7	)		(0.2	)		(10.8	)		(11.7	)
Impairment charges		(18.1	)		—			—			—			(18.1	)
Net book value as of December 31, 2014
Goodwill		688.0			1,914.1			987.5			1,213.9			4,803.5
Accumulated impairment losses		(688.0	)		(1,105.2	)		(222.4	)		(1,081.3	)		(3,096.9	)
Total		—			808.9			765.1			132.6			1,706.6
Acquisitions		51.2			2.3			7.5			5.3			66.3
Foreign exchange and other adjustments		—			(2.4	)		(0.8	)		(8.1	)		(11.3	)
Impairment charges		—			—			—			(18.0	)		(18.0	)
Net book value as of December 31, 2015
Goodwill		739.2			1,914.0			991.5			1,123.6			4,768.3
Accumulated impairment losses		(688.0	)		(1,105.2	)		(219.7	)		(1,011.8	)		(3,024.7	)
Total	$	51.2		$	808.8		$	771.8		$	111.8		$	1,743.6

During the third quarter of 2015, the Company recorded non-cash charges of $18.0 million to reflect the impairment of goodwill in the International segment.  In the fourth quarter of 2014, the Company recorded non-cash charges of $18.1 million to reflect impairment of goodwill in the Publishing and Retail Services segment. See Note 3, Restructuring, Impairment and Other Charges, for further discussion regarding these impairment charges.

The components of other intangible assets at December 31, 2015 and 2014 were as follows:

	December 31, 2015							December 31, 2014
	Gross							Gross
	Carrying		Accumulated			Net Book		Carrying		Accumulated			Net Book
	Amount		Amortization			Value		Amount		Amortization			Value
Customer relationships	$	932.1	$	(555.3	)	$	376.8	$	865.6	$	(498.0	)	$	367.6
Patents		98.3		(98.3	)		—		98.3		(98.3	)		—
Trademarks, licenses and agreements		30.6		(29.9	)		0.7		31.5		(29.7	)		1.8
Trade names		47.5		(19.1	)		28.4		43.1		(15.6	)		27.5
Total amortizable other intangible assets		1,108.5		(702.6	)		405.9		1,038.5		(641.6	)		396.9
Indefinite-lived trade names		32.1		—			32.1		26.8		—			26.8
Total other intangible assets	$	1,140.6	$	(702.6	)	$	438.0	$	1,065.3	$	(641.6	)	$	423.7

During the year ended December 31, 2015, the Company recorded non-cash charges of $11.9 million for the impairment of intangible assets, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively. In the fourth quarter of 2014, the Company recorded non-cash impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively.  During the year ended December 31, 2014, the Company also recorded non-cash charges of $1.4 million to reflect the impairment of trade names in the commercial and digital print reporting unit within the Variable Print segment as a result of facility closures. See Note 3, Restructuring, Impairment and Other Charges, for further discussion regarding these impairment charges.

F-19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

During the years ended December 31, 2015 and 2014, the Company recorded additions to other intangible assets of $108.8 million and $205.0 million, respectively, for acquisitions during those years, the components of which were as follows:

	December 31, 2015				December 31, 2014
	Amount		Weighted Average Amortization Period		Amount		Weighted Average Amortization Period
Customer relationships	$	98.4		11.9	$	178.2		9.7
Trade names (indefinite-lived)		5.5	n/a			8.7	n/a
Trade names (amortizable)		4.6		3.0		17.8		10.0
Non-compete agreements		0.3		4.3		0.3		3.0
Total additions	$	108.8			$	205.0

Amortization expense for other intangible assets was $78.5 million, $78.1 million and $64.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2015:

	Amount
2016	$	64.6
2017		58.7
2018		52.8
2019		48.6
2020		45.0
2021 and thereafter		136.2
Total	$	405.9

Note 5. Accounts Receivable

Transactions affecting the allowance for doubtful accounts receivable during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	44.3		$	44.8		$	49.6
Provisions charged to expense		15.4			16.9			18.2
Write-offs and other		(18.2	)		(17.4	)		(23.0	)
Balance, end of year	$	41.5		$	44.3		$	44.8

Note 6. Inventories

The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2015 and 2014 were as follows:

	2015			2014
Raw materials and manufacturing supplies	$	247.2		$	261.7
Work in process		156.1			157.5
Finished goods		275.2			260.6
LIFO reserve		(86.5	)		(93.6	)
Total	$	592.0		$	586.2

The Company recognized a LIFO benefit of $7.1 million in 2015, expense of $1.6 million in 2014 and a benefit of $0.1 million in 2013.

F-20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 7. Property, Plant and Equipment

The components of the Company’s property, plant and equipment at December 31, 2015 and 2014 were as follows:

	2015			2014
Land	$	113.6		$	112.1
Buildings		1,224.7			1,214.8
Machinery and equipment		6,160.3			6,142.8
		7,498.6			7,469.7
Accumulated depreciation		(6,050.5	)		(5,954.2	)
Total	$	1,448.1		$	1,515.5

During the years ended December 31, 2015, 2014 and 2013, depreciation expense was $331.5 million, $354.7 million, and $337.7 million, respectively.

Note 8. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s assets and liabilities required to be adjusted to fair value on a recurring basis are pension and other postretirement benefits plan assets, foreign exchange forward contracts and interest rate swaps. See Note 11 for the fair value of the Company’s pension and other postretirement benefits plan assets as of December 31, 2015 and 2014 and Note 14 for the fair value of the Company’s foreign exchange forward contracts and interest rate swaps as of December 31, 2015 and 2014. See Note 13 for the fair value of the Company’s debt as of December 31, 2015, which is recorded at book value.

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.

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the years ended December 31, 2015, 2014 and 2013 were as follows:

	Year Ended December 31, 2015				As of December 31, 2015
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	0.3	$	—	$	—
Long-lived assets held for sale or disposal		10.0		17.9		14.4
Goodwill		18.0		—		—
Other intangible assets		11.9		—		—
Total	$	40.2	$	17.9	$	14.4

	Year Ended December 31, 2014				As of December 31, 2014
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	5.4	$	1.3	$	1.3
Long-lived assets held for sale or disposal		12.5		20.8		3.2
Goodwill		18.1		—		—
Other intangible assets		15.0		—		—
Total	$	51.0	$	22.1	$	4.5

F-21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

	Year Ended December 31, 2013				As of December 31, 2013
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	4.2	$	4.2	$	4.0
Long-lived assets held for sale or disposal		14.8		20.2		18.5
Other intangible assets		3.3		—		—
Total	$	22.3	$	24.4	$	22.5

The fair values of assets held for sale that were remeasured during the years ended December 31, 2015, 2014 and 2013 were reduced by estimated costs to sell of $0.4 million, $1.2million and $1.4 million, respectively.

During the year ended December 31, 2015, goodwill for the Europe and Latin America reporting units was written down to an implied fair value of zero.  See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2015, the Company recorded impairment charges of $11.9 million, including $9.2 million and $2.2 million for the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively.  After recording the impairment charges, remaining customer relationship assets in the labels and Latin America reporting units were zero and $0.9 million, respectively. See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2014, goodwill for the magazines, catalogs and retail inserts reporting unit was written down to an implied fair value of zero. See Note 3 for further discussion regarding this impairment charge.

During the year ended December 31, 2014, the Company recorded impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada, commercial and digital print and  financial reporting units, respectively. After recording the impairment charges, remaining customer relationship assets in the Canada, commercial and digital print and financial reporting units were $0.2 million, $181.8 million and $84.0 million, respectively. During the year ended December 31, 2014, $1.4 million of acquired tradenames related to the commercial and digital print reporting unit were written down to an estimated fair value of zero due to facility closures. After recording the impairment charges, remaining tradename intangible assets in the commercial and digital reporting unit were $14.3 million as of December 31, 2014.  See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2013, certain acquired customer relationship assets related to the financial reporting unit were written down to an estimated fair value of zero. After recording the impairment charges, remaining customer relationship intangible assets in the financial reporting unit were $101.2 million as of December 31, 2013. See Note 3 for further discussion regarding these impairment charges.

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.

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 following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the years ended December 31, 2015, 2014 and 2013:

	Fair Value		Valuation Technique	Unobservable Input	Range
2015
Customer relationships	$	—	Excess earnings	Attrition rate		2.7%
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%

F-22

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 9. Accrued Liabilities

The components of the Company’s accrued liabilities at December 31, 2015 and 2014 were as follows:

	2015		2014
Employee-related liabilities	$	286.2	$	337.3
Deferred revenue		146.0		145.4
Restructuring liabilities		29.1		22.3
Other		319.1		362.3
Total accrued liabilities	$	780.4	$	867.3

Employee-related liabilities consist primarily of payroll, sales commission, incentive compensation, employee benefit accruals and workers’ compensation. Incentive compensation accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals, other customer-related liabilities, interest expense accruals and income and other tax liabilities.

Note 10. Commitments and Contingencies

As of December 31, 2015, the Company had commitments of approximately $46.8 million for the purchase of property, plant and equipment related to incomplete projects. In addition, as of December 31, 2015, the Company had commitments of $20.2 million for severance payments related to employee restructuring activities. The Company also has contractual commitments of approximately $111.3 million for outsourced services, including technology, professional, maintenance and other services. The Company has a variety of contracts with suppliers for the purchase of paper, ink and other commodities for delivery in future years at prevailing market prices. In addition, the Company has natural gas purchase commitments that are at fixed prices. As of December 31, 2015, the Company was committed to purchase $7.3 million of natural gas under these contracts.

Future minimum rental commitments under operating leases are as follows:

Year Ended December 31	Amount
2016	$	131.3
2017		96.4
2018		64.1
2019		46.0
2020		34.6
2021 and thereafter		86.6
	$	459.0

The Company has operating lease commitments, including those for vacated facilities, totaling $459.0 million extending through various periods to 2027. Future rental commitments for leases have not been reduced by minimum non-cancelable sublease rentals aggregating approximately $33.9 million. The Company remains secondarily liable under these leases in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreements.

Rent expense for facilities in use and equipment was $172.2 million, $173.2 million and $149.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Rent expense for vacated facilities was recognized as restructuring, impairment and other charges, see Note 3 for further details.

Litigation

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 generally not discounted. The Company has been designated as a potentially responsible party or has received claims in twelve active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate ten other previously and 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.

F-23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

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.

Note 11. Retirement Plans

The Company sponsors various defined benefit retirement income pension plans in the U.S., U.K., Canada and certain other international locations, including both funded and unfunded arrangements. The Company’s primary defined benefit plans are frozen. No new employees will be permitted to enter the Company’s frozen plans and participants will earn no additional benefits. Benefits are generally based upon years of service and compensation. These defined benefit retirement income plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all funded plans using actuarial cost methods and assumptions acceptable under government regulations.

As of December 31, 2015, the Company changed the method used to estimate the interest cost components of net pension and other postretirement benefits plan expense for its defined benefit pension and other postretirement benefit plans. Historically, the interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. The Company has elected to use a full yield curve approach in the estimation of these interest components of net pension and other postretirement benefits plan expense by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest costs. This change does not affect the measurement and calculation of the Company’s total benefit obligations. The Company has accounted for this change as a change in estimate and accordingly, will account for it prospectively starting in the first quarter of 2016.

In 2014 the Company communicated to certain former employees the option to receive a lump-sum pension payment or annuity computed in accordance with statutory requirements, with payments beginning in the fourth quarter of 2014. Payments to eligible participants who elected to receive a lump-sum pension payment or annuity were funded from existing pension plan assets and constituted a complete settlement of the Company’s pension liabilities with respect to these participants. The Company’s pension assets and liabilities were remeasured as of the payout dates. The discount rates and actuarial assumptions used to calculate the payouts were determined in accordance with federal regulations. As of the remeasurement dates, the reductions in the reported pension obligations for these participants was $404.0 million, compared to payout amounts of approximately $317.7 million. The Company recorded non-cash settlement charges of $95.7 million included in selling, general and administrative expenses in the fourth quarter of 2014 in connection with the settlement payments. These charges resulted from the recognition in earnings of a portion of the losses recorded in accumulated other comprehensive loss based on the proportion of the obligation settled.

During the year ended December 31, 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables which were used in the calculation of the Company’s U.S pension obligations. The Company also adopted updated mortality tables for the Canadian pension plans. The new mortality tables increased the expected life of plan participants, extending the length of time that payments may be required and increasing the plans’ total expected benefit payments. The updated mortality assumptions increased the benefit obligations for the U.S and Canadian pension plans by approximately $310.0 million as of December 31, 2014.

The Company made contributions of $15.4 million to its pension plans and $10.2 million to its other postretirement benefits plans during the year ended December 31, 2015. The Company expects to make cash contributions of approximately $25.0 million to $30.0 million to its pension and other postretirement benefits plans in 2016.

In addition to the pension plans, the Company sponsors a 401(k) savings plan, which is a defined contribution retirement income plan.

F-24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Former employees are entitled to certain healthcare and life insurance benefits provided they have met certain eligibility requirements. Generally, the Company’s benefits-eligible U.S. employees become eligible for these retiree healthcare benefits if they meet all of the following requirements at the time of termination: (a) have attained at least 55 or more points (full years of service and age combined), (b) are at least fifty years of age, (c) have at least two years of continuous, regular, full-time, benefits-eligible service and (d) have completed at least two or more years of continuous service with a participating employer, which ends on their termination date. Different requirements need to be met in order to receive subsidized medical and life insurance coverage. Certain of the plan expenses are paid through a tax-exempt trust. Most of the assets of the trust are invested in trust-owned life insurance policies covering certain current and former employees of the Company. The underlying assets of the policies are invested primarily in marketable equity, corporate fixed income and government securities.

During the fourth quarter of 2013, the Company announced the decision to reduce life insurance benefits under the Company’s other postretirement benefits plans for certain active employees and retirees effective December 31, 2013. The remeasurement of the other postretirement benefits plans’ assets and obligations due to the plan amendment resulted in a $30.1 million reduction in the accumulated other postretirement benefits obligation as of December 31, 2013, which was recorded in accumulated other comprehensive loss in the Consolidated Balance Sheets.

The Company operates a prescription drug program for certain Medicare-eligible retirees under a group-based Company sponsored Medicare Part D program, or Employer Group Waiver Program (“EGWP”). The EGWP subsidies provided to or for the benefit of this program are used to reduce the Company’s net retiree medical and prescription drug costs on a group by group basis until such net costs of the Company for such group are eliminated, and any EGWP subsidies received in excess of the amount necessary to offset such net costs are used to reduce the included group of retirees’ premiums.

The Company also maintains several pension and other postretirement benefits plans in certain international locations. The expected returns on plan assets and discount rates for these plans are determined based on each plan’s investment approach, local interest rates and plan participant profiles.

The pension and other postretirement benefits plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Prior to the plan freezes, actuarial gains and losses were amortized using the corridor method over the average remaining service life of active plan participants. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of active plan participants.

The components of the net periodic benefit (income) expense and total (income) expense were as follows:

	Pension Benefits									Other Postretirement Benefits
	2015			2014			2013			2015			2014			2013
Service cost	$	1.9		$	2.2		$	2.2		$	4.7		$	4.6		$	7.3
Interest cost		178.2			194.5			178.2			16.0			16.8			16.2
Expected return on plan assets		(246.0	)		(259.0	)		(241.9	)		(13.1	)		(13.9	)		(11.8	)
Amortization of prior service credit		—			—			—			(26.9	)		(25.8	)		(19.7	)
Amortization of actuarial loss		40.5			31.9			50.5			—			—			—
Settlements		0.2			95.7			0.7			—			—			—
Net periodic benefit (income) expense	$	(25.2	)	$	65.3		$	(10.3	)	$	(19.3	)	$	(18.3	)	$	(8.0	)
Weighted average assumption used to calculate net periodic benefit expense:
Discount rate		4.1	%		5.0	%		4.2	%		3.9	%		4.5	%		3.9	%
Rate of compensation increase		0.2	%		0.2	%		0.3	%	n/a			n/a			n/a
Expected return on plan assets		7.3	%		7.6	%		7.9	%		7.3	%		7.3	%		7.3	%

F-25

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Benefit obligation at beginning of year	$	4,452.2		$	3,952.7		$	424.6		$	382.3
Service cost		1.9			2.2			4.7			4.6
Interest cost		178.2			194.5			16.0			16.8
Plan participants' contributions		—			0.5			10.7			13.8
Medicare reimbursements		—			—			5.7			4.2
Actuarial (gain) loss		(284.9	)		652.3			(46.3	)		43.1
Plan amendments and other		—			—			(0.1	)		(7.4	)
Curtailments and settlements		—			(317.7	)		—			—
Foreign currency translation		(48.6	)		(35.3	)		(8.0	)		(4.2	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Divestitures		(0.4	)		—			—			—
Acquisitions		3.1			176.4			0.4			6.0
Benefit obligation at end of year	$	4,105.8		$	4,452.2		$	375.1		$	424.6
Fair value of plan assets at beginning of year	$	3,841.8		$	3,707.3		$	212.6		$	206.8
Actual return on assets		(31.3	)		455.4			(1.1	)		11.5
Settlements		—			(317.7	)		—			—
Employer contributions		15.4			30.9			10.2			11.0
Medicare reimbursements		—			—			5.7			4.2
Plan participants' contributions		—			0.5			10.7			13.8
Acquisitions		2.0			170.2			—			—
Foreign currency translation		(37.1	)		(31.4	)		—			(0.1	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Fair value of plan assets at end of year	$	3,595.1		$	3,841.8		$	205.5		$	212.6
Funded status at end of year	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

The accumulated benefit obligation for all defined benefit pension plans was $4,088.8 million and $4,428.5 million at December 31, 2015 and 2014, respectively.

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Prepaid pension cost (included in other noncurrent assets)	$	15.2		$	14.4		$	—		$	—
Accrued benefit cost (included in accrued liabilities)		(11.5	)		(8.7	)		(0.8	)		(1.2	)
Pension liabilities		(514.4	)		(616.1	)		—			—
Other postretirement benefits plan liabilities		—			—			(168.8	)		(210.8	)
Net liabilities recognized in the Consolidated Balance Sheets	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015		2014
Accumulated other comprehensive (loss) income
Net actuarial (loss) gain	$	(1,229.9	)	$	(1,284.8	)	$	24.1	$	(8.0	)
Net transition obligation		(0.1	)		(0.1	)		—		—
Net prior service credit		—			—			31.5		58.3
Total	$	(1,230.0	)	$	(1,284.9	)	$	55.6	$	50.3

F-26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The pre-tax amounts recognized in other comprehensive income (loss) in 2015 as components of net periodic benefit costs were as follows:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	40.5	$	—
Net prior service credit		—		(26.9	)
Amounts arising during the period:
Net actuarial loss		7.9		32.0
Divestiture		3.8		—
Net prior service credit		—		0.1
Settlements		0.2		—
Foreign currency loss		2.5		0.1
Total	$	54.9	$	5.3

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2016 are shown below:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	31.3	$	—
Net prior service credit		—		(16.0	)
Total	$	31.3	$	(16.0	)

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Discount rate		4.5	%		4.1	%		4.2	%		3.9	%
Health care cost trend:
Current
Pre-Age 65		—			—			6.1	%		7.9	%
Post-Age 65		—			—			6.1	%		7.9	%
Ultimate		—			—			4.9	%		4.9	%

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Projected benefit obligation	$	3,703.9	$	4,251.0
Fair value of plan assets		3,178.1		3,626.3

F-27

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Accumulated benefit obligation	$	3,686.0	$	4,225.5
Fair value of plan assets		3,175.9		3,622.9

The current health care cost trend rate gradually declines through 2019 to the ultimate trend rate and remains level thereafter. A one-percentage point change in assumed health care cost trend rates would have the following effects:

	1.0% Increase		1.0% Decrease
Other postretirement benefits obligation	$	6.3	$	(5.1	)
Total other postretirement benefits service and interest cost components		0.6		(0.6	)

The Company determines its assumption for the discount rate to be used for purposes of computing annual service and interest costs based on an index of high-quality corporate bond yields and matched-funding yield curve analysis as of the measurement date.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 included a prescription drug benefit under Medicare Part D, as well as a federal subsidy that began in 2006, to sponsors of retiree health care plans that provide a benefit that is at least actuarially equivalent, as defined in the Act, to Medicare Part D. Two of the Company’s retiree health care plans were at least actuarially equivalent to Medicare Part D and were eligible for the federal subsidy. During the years ended December 31, 2015 and 2014, Medicare Part D subsidies received by the Company were negligible.

During the year ended December 31, 2015, the Company received approximately $5.7 million in EGWP subsidies.

Benefit payments are expected to be paid as follows:

	Pension Benefits		Other Postretirement Benefits-Gross		Estimated Subsidy Reimbursements
2016	$	214.8	$	28.0	$	2.2
2017		217.0		28.8		2.4
2018		221.6		29.7		2.6
2019		227.7		29.9		2.8
2020		234.4		30.0		3.0
2021-2025		1,231.3		146.4		17.1

Plan Assets

The Company’s U.S. pension plans are frozen and the Company has transitioned to a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to further reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. Over time, the target asset allocation percentage for the pension plan is expected to decrease for equity and other “return seeking” investments and increase for fixed income and other “hedging” investments. The assumed long-term rate of return for plan assets, which is determined annually, is likely to decrease as the asset allocation shifts over time. The expected long-term rate of return for plan assets is based upon many factors including asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The target asset allocation percentage as of December 31, 2015, for the primary U.S. pension plan was approximately 60.0% for return seeking investments and approximately 40.0% for hedging investments.

The Company segregated its plan assets by the following major categories and levels for determining their fair value as of December 31, 2015 and 2014:

Cash and cash equivalents— Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. As such, these assets were classified as Level 2.

F-28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Equity— The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated net asset value per share (“NAV”), but are not quoted on active markets. As such, these assets were classified as Level 2. Additionally, this category includes underlying securities in trust owned life insurance policies which are invested in certain equity securities. These investments are not quoted on active markets; therefore, they are classified as Level 2.

Fixed income— Fixed income securities are typically priced based on a valuation model rather than a last trade basis and are not exchange-traded. These valuation models involve utilizing dealer quotes, analyzing market information, estimating prepayment speeds and evaluating underlying collateral. Accordingly, the Company classified these fixed income securities as Level 2. The Company also invests in certain fixed income funds that were priced on active markets and were classified as Level 1. Additionally, this category includes underlying securities in trust owned life insurance policies which are invested in certain fixed income securities. These investments are not quoted on active markets; therefore, they are classified as Level 2.

Derivatives and other— This category includes assets and liabilities that are futures or swaps traded on a primary exchange and are priced by multiple providers. Accordingly, the Company classified these assets and liabilities as Level 1. This category also includes various other assets in which carrying value approximates fair value. Additionally, this category includes investments in commodity and structured credit funds that are not quoted on active markets; therefore, they are classified as Level 2.

Real estate—The fair market value of real estate investment trusts is based on observable inputs for similar assets in active markets, for instance, appraisals and market comparables. Accordingly, the real estate investments were categorized as Level 2.

Private equity— Includes the Company’s interest in various private equity funds that are valued by the investment manager on a periodic basis with models that use market, income and cost valuation methods. The valuation inputs are not highly observable, and these interests are not actively traded on an open market. Accordingly, private equity was categorized as Level 3.

For Level 2 and Level 3 plan assets, management reviews significant investments on a quarterly basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

The fair values of the Company’s pension plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015								December 31, 2014
Asset Category	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	136.2	$	105.5	$	30.7	$	—	$	66.4	$	44.1	$	22.3	$	—
Equity		1,534.0		904.3		629.7		—		1,751.7		997.5		754.2		—
Fixed income		1,713.9		36.6		1,677.3		—		1,830.6		43.0		1,787.6		—
Derivatives and other		19.4		1.4		18.0		—		12.8		0.8		12.0		—
Real estate		146.5		—		146.5		—		133.0		—		133.0		—
Private equity		45.1		—		—		45.1		47.3		—		—		47.3
Total	$	3,595.1	$	1,047.8	$	2,502.2	$	45.1	$	3,841.8	$	1,085.4	$	2,709.1	$	47.3

The fair values of the Company’s other postretirement benefits plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015						December 31, 2014
Asset Category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	5.4	$	—	$	5.4	$	0.8	$	—	$	0.8
Equity		139.5		—		139.5		150.8		—		150.8
Fixed income		53.8		—		53.8		46.6		—		46.6
Other		6.8		1.2		5.6		14.4		1.0		13.4
Total	$	205.5	$	1.2	$	204.3	$	212.6	$	1.0	$	211.6

F-29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The following table provides a summary of changes in the fair value of the Company’s Level 3 assets:

	Private Equity
Balance at January 1, 2014	$	43.4
Unrealized gains - net		13.6
Purchases, sales and settlements		(9.7	)
Balance at December 31, 2014	$	47.3
Unrealized gains - net		11.9
Purchases, sales and settlements		(14.1	)
Balance at December 31, 2015	$	45.1

Employee 401(k) Savings Plan — For the benefit of most of its U.S. employees, the Company maintains a defined contribution retirement savings plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code. Under this plan, employees may contribute a percentage of eligible compensation on both a before-tax and after-tax basis. The Company may provide a 401(k) discretionary match to participants, but did not in 2015, 2014 or 2013.

Multi-Employer Pension Plans — Multi-employer plans receive contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan. The risk and level of uncertainty related to participating in these multi-employer pension plans differs significantly from the risk associated with the Company-sponsored defined benefit plans. For example, investment decisions are made by parties unrelated to the Company and the financial stability of other employers participating in a plan may affect the Company’s obligations under the plan.

During the year ended December 31, 2015, the Company recorded charges of $5.5 million for multi-employer pension plans withdrawal obligations unrelated to facility closures. These charges were recorded as restructuring, impairment and other charges and represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. As a result of the acquisition of Courier, the Company participates in two multi-employer pension plans, one of which the Company’s contributions are approximately 85% of the total plan contributions. Both plans are estimated to be underfunded and have a red zone status under the Pension Protection Act. For the year ended December 31, 2014, the Company recorded restructuring, impairment and other charges of $38.5 million associated with its estimated liability for withdrawing from four defined benefit multi-employer pension plans.  Of these charges, $35.5 million were due to the Company’s decision to withdraw from the four defined benefit multi-employer pension plans and $3.0 million were primarily related to facility closures. For the year ended December 31, 2013, the Company recorded restructuring, impairment and other charges of $53.1million related to complete or partial withdrawal from certain multi-employer pension plans. Of these charges, $38.4million were due to the Company’s decision to withdraw from certain multi-employer pension plans and $14.7 million were primarily related to facility closures. See Note 3 for further details of charges related to complete or partial multi-employer pension plan withdrawal liabilities recognized in the Consolidated Statements of Operations.

During the years ended December 31, 2015, 2014 and 2013, the Company made regular contributions of $0.2 million, $0.3 million and $1.3 million, respectively, to these multi-employer pension plans and other plans from which the Company has completely withdrawn as of December 31, 2015.

Note 12. Income Taxes

Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2015, 2014 and 2013:

	2015		2014		2013
U.S.	$	230.6	$	8.5	$	66.7
Foreign		37.2		138.6		142.3
Total	$	267.8	$	147.1	$	209.0

F-30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The components of income tax expense (benefit) from operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Federal:
Current	$	112.7		$	50.1		$	(15.1	)
Deferred		(34.9	)		(64.3	)		(23.9	)
State:
Current		15.8			13.9			(4.8	)
Deferred		(7.5	)		(3.8	)		(2.6	)
Foreign:
Current		37.0			49.3			51.8
Deferred		6.3			(18.9	)		(14.6	)
Total	$	129.4		$	26.3		$	(9.2	)

The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate:

	2015			2014			2013
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Change in valuation allowances		6.0			0.9			3.1
Venezuelan devaluation and sale		4.9			1.3			—
State and local income taxes, net of U.S. federal income tax benefit		3.6			3.1			2.4
Impairment charges		2.3			4.3			—
Acquisition-related expenses		1.6			0.9			0.7
Foreign tax		0.8			1.7			4.0
Adjustment of uncertain tax positions and interest		0.5			(1.8	)		(6.2	)
Reorganization		—			(10.1	)		(32.8	)
Domestic manufacturing deduction		(3.8	)		(3.0	)		(0.1	)
Foreign tax rate differential		(6.9	)		(13.4	)		(11.3	)
Other		4.3			(1.0	)		0.8
Effective income tax rate		48.3	%		17.9	%		(4.4	%)

Included in 2015 is tax expense of $6.0 million related to the receipt of an unfavorable court decision related to payment of prior year taxes in the International segment.

Included in 2014 is a $15.2 million tax benefit related to the decline in value of an entity within the Strategic Services segment.

Included in 2013 is a $58.5 million income tax benefit related to the decline in value and reorganization of certain entities within the Publishing and Retail Services segment and a benefit of $7.2 million for the recognition of previously unrecognized tax benefits related to the expected resolution of certain federal matters.

F-31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Deferred income taxes

The significant deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows:

	2015			2014
Deferred tax assets:
Pension and other postretirement benefits plan liabilities	$	293.7		$	349.1
Net operating losses and other tax carryforwards		293.4			341.6
Accrued liabilities		166.0			164.3
Foreign depreciation		36.7			38.7
Other		41.0			34.6
Total deferred tax assets		830.8			928.3
Valuation allowances		(233.5	)		(257.8	)
Net deferred tax assets	$	597.3		$	670.5
Deferred tax liabilities:
Accelerated depreciation	$	(203.4	)	$	(204.8	)
Other intangible assets		(163.4	)		(143.2	)
Inventories		(24.0	)		(24.4	)
Other		(35.8	)		(34.5	)
Total deferred tax liabilities		(426.6	)		(406.9	)
Net deferred tax assets	$	170.7		$	263.6

In the fourth quarter of 2015, the Company adopted Accounting Standards Update No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”), which requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. The Company adopted the standard prospectively. Therefore, deferred tax balances above are classified as noncurrent in the Consolidated Balance Sheet as of December 31, 2015, and deferred tax amounts are classified as current or noncurrent in accordance with the asset or liability to which they relate in the Consolidated Balance Sheet as of December 31, 2014.

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	257.8		$	268.2		$	273.6
Current year expense-net		16.1			1.3			6.4
Write-offs		(20.3	)		(2.8	)		(8.3	)
Foreign exchange and other		(20.1	)		(8.9	)		(3.5	)
Balance, end of year	$	233.5		$	257.8		$	268.2

As of December 31, 2015, the Company had domestic and foreign net operating loss and other tax carryforwards of approximately $88.2 million and $205.2 million ($98.4 million and $243.2 million, respectively, at December 31, 2014), of which $127.0 million expires between 2016 and 2025. Limitations on the utilization of these tax assets may apply. The Company has provided valuation allowances to reduce the carrying value of certain deferred tax assets, as management has concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized.

Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company has recognized deferred tax liabilities of $4.3 million and $2.6 million as of December 31, 2015 and December 31, 2014, respectively, related to local taxes on certain foreign earnings which are not considered to be permanently reinvested. Undistributed earnings of foreign subsidiaries that are considered indefinitely reinvested outside of the U.S. were approximately $1.6 billion as of December 31, 2015. Upon repatriation of these earnings to the U.S. in the form of dividends or otherwise, the Company may be subject to U.S. income taxes and foreign taxes. The tax cost would depend on income tax laws and circumstances at the time of distribution.

Cash payments for income taxes were $134.0 million, $125.5 million and $99.0 million in 2015, 2014 and 2013, respectively. Cash refunds for income taxes were $19.9 million, $13.9 million and $12.1 million in 2015, 2014 and 2013, respectively.

F-32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The Company’s income taxes payable for federal and state purposes has been reduced by the tax benefits associated with the exercise of employee stock options and the vesting of restricted stock units. A component of the income tax benefit, calculated as the tax effect of the difference between the fair market value at the time stock options are exercised or restricted stock units vest and the grant date fair market value, directly increases or reduces RR Donnelley shareholders’ equity. For the years ended December 31, 2015, 2014 and 2013, the tax expense recognized as a reduction of RR Donnelley’s shareholders’ equity was $3.2 million, $2.9 million and $0.9 million, respectively.

See Note 16 for details of the income tax expense or benefit allocated to each component of other comprehensive income.

Uncertain tax positions

Changes in the Company’s unrecognized tax benefits at December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance at beginning of year	$	58.5		$	33.8		$	47.9
Acquisitions		—			30.9			—
Additions for tax positions of the current year		1.8			1.9			2.1
Additions for tax positions of prior years		4.6			0.4			3.7
Reductions for tax positions of prior years		(5.3	)		(1.4	)		(16.2	)
Settlements during the year		(0.3	)		(2.9	)		(0.7	)
Lapses of applicable statutes of limitations		(3.0	)		(4.2	)		(3.0	)
Balance at end of year	$	56.3		$	58.5		$	33.8

As of December 31, 2015, 2014 and 2013, the Company had $56.3 million, $58.5 million and $33.8 million, respectively, of unrecognized tax benefits. Unrecognized tax benefits of $37.7 million as of December 31, 2015, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net earnings. This potential impact on net earnings reflects the reduction of these unrecognized tax benefits, net of certain deferred tax assets and the federal tax benefit of state income tax items.

As of December 31, 2015, it is reasonably possible that the total amount of unrecognized tax benefits will decrease within twelve months by as much as $16.5 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state and international tax positions.

The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. The total interest expense, net of tax benefits, related to tax uncertainties recognized in the Consolidated Statements of Operations was expense of $1.1 million and $0.1 million for the years ended December 31, 2015 and 2014, respectively, and a benefit of $1.8 million for the year ended December 31, 2013 due to the reversal of interest accrued on previously unrecognized tax benefits that were recognized during the respective year. There were no benefits from the reversal of accrued penalties for the year ended December 31, 2015. Benefits of $0.1 million and $2.6 million were recognized for the years ended December 31, 2014 and 2013, respectively, from the reversal of accrued penalties. Accrued interest of $7.0 million and $5.6 million related to income tax uncertainties were reported as a component of other noncurrent liabilities in the Consolidated Balance Sheets at December 31, 2015 and 2014, respectively. There were no accrued penalties related to income tax uncertainties for the years ended December 31, 2015 and 2014.

The Company has tax years from 2010 that remain open and subject to examination by the IRS, certain state taxing authorities or certain foreign tax jurisdictions.

F-33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 13. Debt

The Company’s debt at December 31, 2015 and 2014 consisted of the following:

	2015			2014
5.50% senior notes due May 15, 2015	$	—		$	200.0
8.60% senior notes due August 15, 2016		219.6			219.1
6.125% senior notes due January 15, 2017		251.2			251.0
7.25% senior notes due May 15, 2018		250.0			250.0
11.25% senior notes due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		238.9			238.9
7.625% senior notes due June 15, 2020		350.0			350.0
7.875% senior notes due March 15, 2021		448.5			448.3
8.875% debentures due April 15, 2021		80.9			80.9
7.00% senior notes due February 15, 2022		400.0			400.0
6.50% senior notes due November 15, 2023		350.0			350.0
6.00% senior notes due April 1, 2024		400.0			400.0
6.625% debentures due April 15, 2029		199.5			199.5
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		18.7			3.6
Unamortized debt issuance costs		(25.6	)		(30.5	)
Total debt		3,422.9			3,602.0
Less: current portion		(234.6	)		(203.4	)
Long-term debt	$	3,188.3		$	3,398.6

(a) As of December 31, 2015 and 2014, the interest rate on the 11.25% senior notes due February 1, 2019 was 12.75% as a result of downgrades in the ratings of the notes by the rating agencies. As a result of a ratings downgrade on February 2, 2016, the interest rate increased from 12.75% to 13.0% in February 2016.

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

________________________

The fair values of the senior notes and debentures, which were determined using the market approach based upon 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 $39.7 million and greater than its book value by approximately $259.5 million at December 31, 2015 and 2014, respectively.

In the fourth quarter of 2015, the Company adopted Accounting Standards Update No. 2015-03 “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt and Accounting Standards Update No. 2015-15 “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The adoption of ASU 2015-03 and ASU 2015-15 resulted in the reclassification of $25.6 million and $30.5 million of unamortized debt issuance costs from "Other noncurrent assets" to "Long-term debt" as of December 31, 2015 and 2014, respectively. There is $13.2 million and $16.3 million of unamortized debt issuance costs related to the Company’s revolving credit facility that remain classified as an asset as of December 31, 2015 and 2014, respectively.    

Effective September 9, 2014, the aggregate revolving commitments of the Lenders under the Company’s senior secured revolving credit facility (the “Credit Agreement”) were increased from $1.15 billion to $1.5 billion and the expiration date of the Credit Agreement was extended from October 15, 2017 to September 9, 2019.

The Credit Agreement is subject to a number of covenants, including a minimum Interest Coverage Ratio and a maximum Leverage Ratio, as defined and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The Credit Agreement generally allows annual dividend payments of up to $225.0 million in aggregate, though additional dividends may be allowed subject to certain conditions.

F-34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The weighted average interest rate on borrowings under the Company’s $1.5 billion Credit Agreement was 2.0% during the years ended December 31, 2015 and 2014.

Cash on hand and borrowings under the Credit Agreement were used to pay the $200.0 million 5.50% senior notes that matured on May 15, 2015.

On April 1, 2014, cash on hand and borrowings under the Credit Agreement were used to pay the $258.2 million 4.95% senior notes that matured on April 1, 2014.

On March 20, 2014, the Company issued $400.0 million of 6.00% senior notes due April 1, 2024. Interest on the notes is payable semi-annually on April 1 and October 1, and commenced on October 1, 2014. The net proceeds from the offering along with borrowings under the Credit Agreement were used to repurchase $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018, and $50.0 million of the 7.625% senior notes due June 15, 2020. The repurchases resulted in a pre-tax loss on debt extinguishment of $77.1 million for the year ended December 31, 2014 related to the premiums paid, unamortized debt issuance costs, elimination of the $2.8 million fair value adjustment on the 8.25% senior notes and other expenses.

As of December 31, 2015, the Company had $91.3 million in outstanding letters of credit, of which $55.6 million were issued under the Credit Agreement. The letters of credit issued under the Credit Agreement did not reduce availability under the Credit Agreement at December 31, 2015, as the amounts issued were less than the reduction in availability from the Leverage Ratio covenant. As of December 31, 2015, the Company also had $167.6 million in other uncommitted credit facilities, primarily outside the U.S., (the “Other Facilities”). As of December 31, 2015, bank acceptance drafts, letters of credit and guarantees of $81.7 million were issued, and reduced availability, under the Company’s Other Facilities. As of December 31, 2015 and 2014, total borrowings under the Credit Agreement and the Other Facilities (the “Combined Facilities”) were $11.2 million and $2.5 million, respectively.

At December 31, 2015, the future maturities of debt, including capitalized leases, were as follows:

	Amount
2016	$	234.8
2017		254.3
2018		250.2
2019		411.1
2020		350.0
2021 and thereafter		1,950.0
Total (a)	$	3,450.4

__________________

(a) Excludes unamortized debt issuance costs of $25.6 million, a discount of $2.6 million and an adjustment for fair value hedges of $0.7 million related to the Company’s 8.25% senior notes due March 15, 2019, which do not represent contractual commitments with a fixed amount or maturity date.

The following table summarizes interest expense included in the Consolidated Statements of Operations:

	2015			2014			2013
Interest incurred	$	285.2		$	294.6		$	276.0
Less: interest income		(5.3	)		(8.9	)		(11.5	)
Less: interest capitalized as property, plant and equipment		(3.9	)		(3.6	)		(3.1	)
Interest expense, net	$	276.0		$	282.1		$	261.4

Interest paid, net of interest received, was $271.3 million, $272.8million and $245.0 million in 2015, 2014 and 2013, respectively.

F-35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Note 14. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in the 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 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 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 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 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 many 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 subsidiary or operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange spot and forward contracts to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the gains and losses associated with the fair values of foreign currency exchange contracts are recognized currently in the Consolidated Statements of Operations and 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 aggregate notional value of the forward contracts at December 31, 2015 and 2014 was $268.4 million and $377.2 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 at inception, were 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 were attributable to changes in the benchmark interest rate. During the year ended December 31, 2014, the Company repurchased $211.1 million of the 8.25% senior notes due March 15, 2019, and related interest rate swaps with a notional amount of $210.0 million were terminated, resulting in payments of $4.2 million for the fair value of the interest rate swaps.  As a result of the termination, the remaining notional amount of the interest rate swap agreements as of December 31, 2014 was $190.0 million. The interest rate swaps were designated as fair value hedges against changes in the value of the $238.9 million of the Company’s 8.25% senior notes due March 15, 2019.

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 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. In conjunction with the 4.95% senior notes maturity in April 2014, the remaining interest rate swap agreements matured.

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’s foreign exchange forward contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign exchange forward contracts on a net basis when possible. Foreign exchange forward contracts that can be settled on a net basis are presented net in the Consolidated Balance Sheets. Interest rate swaps are settled on a gross basis and presented gross in the Consolidated Balance Sheets.

F-36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

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 December 31, 2015 and 2014, 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 Consolidated Balance Sheets in which the fair value amounts were included, were as follows:

	2015		2014
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	1.8	$	7.0
Accrued liabilities		1.5		0.5
Derivatives designated as fair value hedges
Other noncurrent assets	$	0.4	$	—
Other noncurrent liabilities		—		1.2

The pre-tax (gains) losses related to derivatives not designated as hedges recognized in the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	(28.2	)	$	(33.5	)	$	17.0

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) loss on the related interest rate swaps for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Fair Value Hedges
Interest rate swaps	Investment and other expense-net	$	(1.7	)	$	(2.1	)	$	22.5
Hedged items	Investment and other expense-net		1.3			1.3			(20.8	)
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	Investment and other expense-net	$	(0.4	)	$	(0.8	)	$	1.7

The Company also recognized a net reduction to interest expense of $2.0 million, $3.8 million and $8.7 million for the years ended December 31, 2015, 2014 and 2013, respectively, related to the Company’s fair value hedges, which includes interest accruals on the derivatives and amortization of the basis in the hedged items.

Note 15. Earnings per Share

Basic earnings per share is calculated by dividing net earnings attributable to RR Donnelley common shareholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are considered anti-dilutive and excluded if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of the Company’s stock price during the applicable period.

During the years ended December 31, 2015, 2014 and 2013, no shares of common stock were purchased by the Company, however, shares were withheld for tax liabilities upon the vesting of equity awards. During the year ended December 31, 2015, the Company issued 8.0 million shares of stock in conjunction with the Courier acquisition.  During the year-ended December 31, 2014, the Company issued stock in conjunction with the Consolidated Graphics and Esselte acquisitions of 16.0 million and 1.0 million shares, respectively.

F-37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.73	$	0.59	$	1.16
Diluted	$	0.73	$	0.59	$	1.15
Dividends declared per common share	$	1.04	$	1.04	$	1.04
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	151.1	$	117.4	$	211.2
Denominator:
Weighted average number of common shares outstanding		205.6		198.5		181.9
Dilutive options and awards		1.2		1.5		1.6
Diluted weighted average number of common shares outstanding		206.8		200.0		183.5
Weighted average number of anti-dilutive share-based awards:
Stock options		2.0		2.0		3.9
Performance share units		0.7		0.7		0.6
Restricted stock units		—		—		1.5
Total		2.7		2.7		6.0

Note 16. Comprehensive Income

The components of other comprehensive (loss) income and income tax expense allocated to each component for the years ended December 31, 2015, 2014 and 2013 was as follows:

	2015								2014									2013
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense			Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(55.7	)	$	—	$	(55.7	)	$	(45.2	)	$	—		$	(45.2	)	$	(22.8	)	$	—	$	(22.8	)
Adjustment for net periodic pension and other postretirement benefits plan cost		60.2			25.4		34.8			(390.9	)		(150.0	)		(240.9	)		919.0			355.3		563.7
Change in fair value of derivatives		0.1			—		0.1			0.2			0.1			0.1			0.6			0.2		0.4
Other comprehensive (loss) income	$	4.6		$	25.4	$	(20.8	)	$	(435.9	)	$	(149.9	)	$	(286.0	)	$	896.8		$	355.5	$	541.3

The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2015, 2014 and 2013:

	Changes in the Fair Value of Derivatives			Pension and Other Postretirement Benefits Plan Cost			Translation Adjustments			Total
Balance at January 1, 2013	$	(0.6	)	$	(1,085.1	)	$	56.5		$	(1,029.2	)
Other comprehensive income (loss) before reclassifications		—			543.9			(23.0	)		520.9
Amounts reclassified from accumulated other comprehensive loss		0.4			19.8			—			20.2
Net change in accumulated other comprehensive loss		0.4			563.7			(23.0	)		541.1
Balance at December 31, 2013	$	(0.2	)	$	(521.4	)	$	33.5		$	(488.1	)
Other comprehensive loss before reclassifications		—			(303.4	)		(34.7	)		(338.1	)
Amounts reclassified from accumulated other comprehensive loss		0.1			62.5			—			62.6
Amounts reclassified from cumulative translation adjustment		—			—			(10.0	)		(10.0	)
Net change in accumulated other comprehensive loss		0.1			(240.9	)		(44.7	)		(285.5	)
Balance at December 31, 2014	$	(0.1	)	$	(762.3	)	$	(11.2	)	$	(773.6	)
Other comprehensive income (loss) before reclassifications		—			22.1			(67.6	)		(45.5	)
Amounts reclassified from accumulated other comprehensive loss		0.1			8.9			—			9.0
Amounts reclassified due to disposition of an operating entity		—			3.8			13.1			16.9
Net change in accumulated other comprehensive loss		0.1			34.8			(54.5	)		(19.6	)
Balance at December 31, 2015	$	—		$	(727.5	)	$	(65.7	)	$	(793.2	)

F-38

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Reclassifications from accumulated other comprehensive loss for the year ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013			Classification in the Consolidated Statements of Operations
Amortization of pension and other postretirement benefits plan cost:
Net actuarial loss	$	40.5		$	31.9		$	50.5		(a)
Net prior service credit		(26.9	)		(25.8	)		(19.7	)	(a)
Curtailments and settlements		0.2			95.7			0.7		(a)
Reclassifications before tax		13.8			101.8			31.5
Income tax expense		4.9			39.3			11.7
Reclassifications, net of tax	$	8.9		$	62.5		$	19.8

(a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense recognized in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Operations (see Note 11).

Note 17. Stock and Incentive Programs for Employees and Directors

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 Company estimates the fair value of share-based awards based on assumptions as of the grant date. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three to four years for restricted stock awards and stock options and the performance period for performance share units. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates.

Share-Based Compensation Expense

The total compensation expense related to all share-based compensation plans was $17.3 million, $17.7 million and $19.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. The income tax benefit related to share-based compensation expense was $6.7 million, $6.9 million and $7.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, $19.3 million of total unrecognized compensation expense related to share-based compensation plans is expected to be recognized over a weighted-average period of 1.8 years.

Share-Based Compensation Plans

The Company has one share-based compensation plan under which it may grant future awards, as described below, and one terminated or expired share-based compensation plan under which awards remain outstanding.

The 2012 Performance Incentive Plan (the “2012 PIP”) was approved by shareholders to provide incentives to key employees of the Company and its subsidiaries. Awards under the 2012 PIP are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock units, restricted stock awards, cash or stock bonuses and stock appreciation rights. There were 10 million shares of common stock reserved and authorized for issuance under the 2012 PIP. At December 31, 2015, there were 5.7 million shares of common stock authorized and available for grant under the 2012 PIP.

General Terms of Awards

Under various incentive plans, the Company has granted certain employees non-qualified stock options, restricted stock units, and performance share units. The Human Resources Committee of the Board of Directors has discretion to establish the terms and conditions for grants, including the number of shares, vesting and required service or other performance criteria. The maximum term of any award under the 2012 PIP and previous plans is ten years.

For all of the Company’s stock options outstanding at December 31, 2015, the exercise price of the stock option equals the fair market value of the Company’s common stock on the option grant date. Options generally vest over four years or less from the date of grant, upon retirement or upon a change in control of the Company. Options generally expire ten years from the date of grant or five years after the date of retirement, whichever is earlier.

F-39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The rights granted to the recipient of restricted stock unit awards generally accrue ratably over the restriction or vesting period, which is generally four years. The Company has also granted restricted stock unit awards which cliff vest three years from the grant date. Restricted stock unit 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, termination of the grantee’s employment under certain circumstances or a change in control of the Company. The Company records compensation expense of restricted stock unit awards based on the fair market value of the awards at the date of grant ratably over the period during which the restrictions lapse. Dividends are not paid on restricted stock units.

The Company also issues restricted stock units as share-based compensation for members of the Board of Directors. Director restricted stock units granted after January 2009 vest ratably over three years from the date of grant with the opportunity to defer any tranche of vesting restricted stock units until termination of service on the Board of Directors. Awards granted between January 2008 and January 2009 vested ratably over three years from the date of grant and were amended in May 2009 to provide the opportunity to defer any tranche of vesting restricted stock units until termination of service on the Board of Directors. For awards granted prior to January 2008, one-third of the restricted stock units vested on the third anniversary of the grant date, and the remaining two-thirds of the restricted stock units vested upon termination of the holder’s service on the Board of Directors; the holder could also elect to defer delivery of the initial one-third of the restricted stock units until termination of service on the Board of Directors. In the event of termination of a holder’s service on the Board of Directors prior to a vesting date, all restricted stock units of such holder will vest. All awards granted prior to December 31, 2007 are payable in shares of common stock or cash. In 2009, the option to have awards paid in cash was removed for awards granted in 2008 and future years. Awards that may be paid in cash are classified as liability awards due to their expected settlement in cash, and are included in accrued liabilities in the Consolidated Balance Sheets. Approximately 86,372, 86,372 and 124,599 restricted stock units classified as liability awards were outstanding at December 31, 2015, 2014 and 2013, respectively. Compensation expense for these awards is measured based upon the fair market value of the awards at the end of each reporting period. Awards payable only in shares are classified as equity awards due to their expected settlement in common stock. Compensation expense for these awards is measured based upon the fair market value of the awards at the date of grant. Dividend equivalents are accrued for shares awarded to the Board of Directors and paid in the form of cash.

The Company has granted performance share unit awards to certain executive officers and senior management. Distributions under these awards are payable at the end of their respective performance periods in common stock or cash, at the Company’s discretion. The number of share units that vest can range from zero to 150% for the 2015 awards and from zero to 100% for the 2014 and 2013 awards, depending on achievement of a targeted performance metric for a performance period of three years inclusive of the year in which the award was granted. These awards are subject to forfeiture upon termination by the Company under certain circumstances prior to vesting. The Company expenses the cost of the performance share unit awards based on the fair market value of the awards at the date of grant and the estimated achievement of the performance metric, ratably over the performance period of three years.

Stock Options

There were no options granted during the years ended December 31, 2015 and 2014.

Stock option awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2014		3,847		$	19.43		4.7	$	12.6
Exercised		(135	)		13.21
Cancelled/forfeited/expired		(5	)		13.23
Outstanding at December 31, 2015		3,707			19.66		3.6		8.4
Vested and expected to vest at December 31, 2015		3,701			19.67		3.6		8.4
Exercisable at December 31, 2015		1,455		$	9.22		4.2	$	8.0

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 December 31, 2015 and 2014, 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 December 31, 2015 and 2014. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised for the years ended December 31, 2015, 2014 and 2013 was $0.8 million, $1.1 million and $0.7 million, respectively.

F-40

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Compensation expense related to stock options for the years ended December 31, 2015, 2014 and 2013 was $0.6 million, $0.9 million and $1.5 million, respectively. As of December 31, 2015, $0.1 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 0.2 years.

Cash received from the option exercises for the year ended December 31, 2015, 2014 and 2013 was $1.8 million, $1.6 million and $2.2 million, respectively. The actual tax benefit realized for the tax deduction from option exercises totaled $0.3 million, $0.4 million and $0.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Excess tax benefits on stock option exercises, shown as financing cash inflows as a component of issuance of common stock in the Consolidated Statements of Cash Flows, were $0.2 million, $0.3 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Restricted Stock Units

Nonvested restricted stock unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015 were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		2,045		$	12.54
Granted		701			17.14
Vested		(1,010	)		13.71
Forfeited		(66	)		13.55
Nonvested at December 31, 2015		1,670		$	13.72

Compensation expense related to restricted stock units was $11.6 million, $13.3 million and $15.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, there was $12.5 million of unrecognized share-based compensation expense related to approximately 1.7 million restricted stock unit awards, with a weighted-average grant date fair value of $13.70, that are expected to vest over a weighted-average period of 1.8 years. The fair value of these awards was determined based on the Company’s stock price on the grant date reduced by the present value of expected dividends through the vesting period.

Excess tax benefits on restricted stock units that vested, shown as financing cash inflows as a component of issuance of common stock in the Consolidated Statements of Cash Flows, were $2.4 million, $2.5 million and $2.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Performance Share Units

Nonvested performance share unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		804		$	11.87
Granted		418			16.73
Expired/forfeited		(5	)		16.73
Vested		(485	)		8.85
Nonvested at December 31, 2015		732		$	16.61

F-41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

During the years ended December 31, 2015, 2014 and 2013, 418,000, 319,000 and 485,000 performance share unit awards, respectively, were granted to certain executive officers and senior management, payable upon the achievement of certain established performance targets. The performance periods for the shares awarded during the years ended December 31, 2015, 2014 and 2013 are January 1, 2015 through December 31, 2017, January 1, 2014 through December 31, 2016 and January 1, 2013 through December 31, 2015, 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 years ended December 31, 2015 and 2014 range from 209,000 to 627,000 and 154,500 to 319,000 shares, respectively, should certain performance targets be achieved. The maximum potential payout of 485,000 shares was achieved for awards granted during the year ended December 31, 2013. 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, permanent disability or retirement of the grantee or a change in control of the Company. If the proposed spinoff transactions are completed, the terms of the performance share unit awards may be modified. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for further details regarding the proposed spinoff transactions.

Compensation expense for the awards granted in 2015 and 2014 is currently being recognized based on 100% estimated payout of 418,000 and 319,000 shares, for each respective period. Compensation expense for awards granted during 2013 was recognized based on the achieved payout of 100%, or 485,000 shares, which are expected to be distributed during the first quarter of 2016. Compensation expense related to performance share unit awards for the years ended December 31, 2015, 2014 and 2013 was $5.1 million, $3.5 million and $2.5 million, respectively. As of December 31, 2015, there was $6.7 million of unrecognized compensation expense related to performance share unit awards, which is expected to be recognized over a weighted average period of 1.7 years.

Note 18. Preferred Stock

The Company has two million shares of $1.00 par value preferred stock authorized for issuance. The Board of Directors may divide the preferred stock into one or more series and fix the redemption, dividend, voting, conversion, sinking fund, liquidation and other rights. The Company has no present plans to issue any preferred stock.  

Note 19. Segment Information

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. The Publishing and Retail Services segment accounted for 22.4% of the Company’s consolidated net sales in 2015.

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, office products, labels, statement printing, forms and packaging. The Variable Print segment accounted for 33.4% of the Company’s consolidated net sales in 2015.

Strategic Services

The Strategic Services segment includes the Company’s logistics services, financial print products and related services, print management offerings and digital and creative solutions and book publishing. The Strategic Services segment accounted for 23.8% of the Company’s consolidated net sales in 2015.

F-42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

International

The International segment includes the Company’s non-U.S. printing operations in Asia, Europe, Latin America and Canada. This segment’s primary 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. The International segment accounted for 20.4% of the Company’s consolidated net sales in 2015.

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 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, 2015
Publishing and Retail Services	$	2,556.3	$	(34.6	)	$	2,521.7	$	77.3		$	1,334.4	$	148.3	$	35.0
Variable Print		3,817.6		(55.2	)		3,762.4		250.7			2,496.2		152.6		56.9
Strategic Services		2,849.4		(171.5	)		2,677.9		257.5			1,404.9		66.1		49.0
International		2,402.7		(107.9	)		2,294.8		71.4			1,675.3		83.5		47.8
Total operating segments		11,626.0		(369.2	)		11,256.8		656.9			6,910.8		450.5		188.7
Corporate		—		—			—		(69.5	)		368.5		3.5		18.9
Total operations	$	11,626.0	$	(369.2	)	$	11,256.8	$	587.4		$	7,279.3	$	454.0	$	207.6
Year ended December 31, 2014
Publishing and Retail Services	$	2,646.1	$	(13.8	)	$	2,632.3	$	86.1		$	1,215.7	$	145.1	$	43.5
Variable Print		3,829.7		(61.8	)		3,767.9		240.8			2,649.5		157.2		53.0
Strategic Services		2,744.8		(137.3	)		2,607.5		257.4			1,366.6		65.5		41.0
International		2,691.2		(95.5	)		2,595.7		106.7			1,865.4		98.8		68.3
Total operating segments		11,911.8		(308.4	)		11,603.4		691.0			7,097.2		466.6		205.8
Corporate		—		—			—		(175.1	)		511.6		7.4		17.8
Total operations	$	11,911.8	$	(308.4	)	$	11,603.4	$	515.9		$	7,608.8	$	474.0	$	223.6
Year ended December 31, 2013
Publishing and Retail Services	$	2,777.7	$	(2.9	)	$	2,774.8	$	109.6		$	1,369.6	$	166.0	$	57.7
Variable Print		2,650.7		(57.9	)		2,592.8		197.9			1,567.1		103.4		63.4
Strategic Services		2,587.7		(134.7	)		2,453.0		232.8			1,355.6		58.4		34.9
International		2,746.9		(87.2	)		2,659.7		147.3			2,060.0		102.5		50.8
Total operating segments		10,763.0		(282.7	)		10,480.3		687.6			6,352.3		430.3		206.8
Corporate		—		—			—		(107.9	)		852.8		5.5		9.8
Total operations	$	10,763.0	$	(282.7	)	$	10,480.3	$	579.7		$	7,205.1	$	435.8	$	216.6

F-43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

Corporate assets primarily consisted of the following items at December 31, 2015, 2014 and 2013:

	2015			2014			2013
Cash and cash equivalents	$	(45.8	)	$	94.6		$	494.9
Deferred income tax assets, net of valuation allowances		169.9			152.0			39.2
Software, net		98.8			82.1			71.1
Deferred compensation plan assets and Company owned life insurance assets		92.1			86.0			79.5
Property, plant and equipment, net		61.6			61.2			61.7
LIFO reserves		(86.5	)		(93.6	)		(92.0	)

Restructuring, impairment and other charges by segment for 2015, 2014 and 2013 are described in Note 3.

Note 20. Geographic Area and Products and Services Information

The table below presents net sales and long-lived assets by geographic region. The amounts in this table differ from the segment data presented in Note 19 because each operating segment includes operations in multiple geographic regions based on the Company’s management reporting structure.

	U.S.		Europe		Asia		Other		Consolidated
2015
Net sales	$	8,937.7	$	905.0	$	832.3	$	581.8	$	11,256.8
Long-lived assets (a)		1,601.8		141.0		112.1		141.1		1,996.0
2014
Net sales	$	8,974.2	$	983.1	$	860.1	$	786.0	$	11,603.4
Long-lived assets (a)		1,671.1		154.0		129.0		181.6		2,135.7
2013
Net sales	$	7,866.2	$	975.2	$	841.5	$	797.4	$	10,480.3
Long-lived assets (a)		1,435.7		160.7		152.2		175.8		1,924.4

(a) Includes net property, plant and equipment, noncurrent deferred tax assets and other noncurrent assets.

_______________________________

F-44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

The following table summarizes net sales by the Company’s products and services categories for the years ended December 31, 2015, 2014 and 2013:

Products and services	2015 Net Sales		2014 Net Sales		2013 Net Sales
Magazines, catalogs and retail inserts	$	1,950.5	$	2,223.5	$	2,370.0
Commercial and digital print		1,885.0		1,851.7		966.4
Books		1,237.9		1,149.4		1,202.2
Financial print		681.7		722.2		775.1
Statements		607.5		641.3		666.0
Office products		560.2		496.3		238.9
Direct mail		524.4		613.2		571.7
Labels		500.6		523.3		488.1
Packaging and related products		489.3		484.0		464.3
Forms		358.1		462.1		491.9
Global Turnkey Solutions		345.8		341.7		305.4
Directories		182.6		206.5		225.8
Total products		9,323.6		9,715.2		8,765.8
Logistics services		1,270.4		1,211.3		1,105.9
Financial print related services		309.0		292.3		230.2
Business process outsourcing		193.4		195.8		188.8
Digital and creative solutions		160.4		188.8		189.6
Total services		1,933.2		1,888.2		1,714.5
Total net sales	$	11,256.8	$	11,603.4	$	10,480.3

Note 21. Venezuela Currency Remeasurement

As described in Note 2, Acquisitions and Dispositions, on April 29, 2015 the Company sold its 50.1% interest in its Venezuelan operating entity.

Since January 1, 2010, the three-year cumulative inflation for Venezuela using the blended Consumer Price Index and National Consumer Price Index has exceeded 100%. As a result, Venezuela’s economy is considered highly inflationary and the financial statements of the Company’s Venezuelan subsidiaries were remeasured as if the functional currency were the U.S. Dollar. Prior to March 31, 2014, the financial statements were remeasured based on the official rate determined by the government of Venezuela.

During the first quarter of 2014, the Venezuelan government expanded the operation of the Supplementary System for the Administration of Foreign Currency (“SICAD 1”) currency exchange mechanism for use with certain transactions. In addition, the Venezuelan government also began operating the SICAD 2 exchange which the government indicated was available to all entities for all transactions.  The Venezuelan government indicated that the official rate of 6.3 Bolivars per U.S. Dollar would be reserved only for settlement of U.S. Dollar denominated purchases of “essential goods and services.” As of December 31, 2014, the SICAD 1 and SICAD 2 exchange rates were 12.0 and 50.0 Bolivars per U.S. Dollar, respectively. Beginning March 31, 2014, certain assets of the Company’s Venezuelan subsidiaries were remeasured at the SICAD 2 rate as the Company believed those assets would ultimately be utilized to settle U.S. Dollar denominated liabilities using SICAD 2.  Remaining net monetary assets were remeasured at the SICAD 1 rate, as the Company believed SICAD 1 would be applicable for future transactions, and dividend remittances, if any, from the Company’s Venezuelan subsidiaries.  During the three months ended June 30, 2014, certain transactions pending approval at the official rate of 6.3 Bolivars per U.S. Dollar were approved, resulting in foreign exchange gains.  As a result of the remeasurement at the SICAD 1 and SICAD 2 rates and foreign exchange gains resulting from certain transactions approved at the official rate during the year ended December 31, 2014, a net pre-tax loss, net of foreign exchange gains, of $18.4 million ($13.8 million after-tax) was recognized in net investment and other expense, of which $5.6 million was included in loss attributable to noncontrolling interests.  

In February 2015, the Venezuelan government discontinued the SICAD 2 rate and introduced a new currency exchange rate mechanism (“SIMADI”).  As of February 28, 2015, monetary assets and liabilities of the Company’s Venezuelan subsidiaries were remeasured at the SIMADI rate as the Company believed the SIMADI was the exchange rate mechanism most likely to be available to the Company’s Venezuelan subsidiaries to settle U.S. Dollar denominated transactions. As of March 31, 2015, the SIMADI rate was 193 Bolivars per U.S. Dollar.

F-45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

As a result of the remeasurement at the SIMADI rate and the related impact of the devaluation, during the year ended December 31, 2015, a pre-tax loss of $30.3 million ($27.5 million after-tax) was recognized in net investment and other expense, of which $10.5 million was included in loss attributable to noncontrolling interests.

Note 22. New Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17 which requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. The Company adopted the standard prospectively in the fourth quarter of 2015 and prior periods were not retrospectively adjusted. The adoption of ASU 2015-17 resulted in the reclassification of $38.5 million of current deferred tax assets to noncurrent on the balance sheet as of December 31, 2015. Current deferred tax assets of $41.6 million are included in “Prepaid expenses and other current assets” as of December 31, 2014.

In April 2015, the FASB issued ASU 2015-03 which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt.  ASU 2015-03 requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued ASU 2015-15 which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The Company adopted the standards in the fourth quarter of 2015. The adoption of ASU 2015-03 and ASU 2015-15 resulted in the reclassification of $25.6 million and $30.5 million of unamortized debt issuance costs from "Other noncurrent assets" to "Long-term debt" as of December 31, 2015 and 2014, respectively.  

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09 to January 1, 2018. Early adoption of ASU 2014-09 is permitted in the first quarter of 2017, however the Company plans to adopt the standard in the first quarter of 2018. The standard allows the option of either a full retrospective adoption, meaning the standard is applied to all periods presented, or a modified retrospective adoption, meaning the standard is applied only to the most current period. The Company is evaluating the impact of the provisions of ASU 2014-09 and currently anticipates applying the modified retrospective approach when adopting the standard.

The following recently issued standards are not expected to have a material impact on the Company’s Consolidated Financial Statements:

· Accounting Standards Update No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”

· Accounting Standards Update No. 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”

· Accounting Standards Update No. 2015-12 “Plan Accounting (Topics 960, 962, and 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient”

· Accounting Standards Update No. 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory”

· Accounting Standards Update No. 2015-07 “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)”

· Accounting Standards Update No. 2015-05 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”

· Accounting Standards Update No. 2015-04 “Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”

· Accounting Standards Update No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis”

· Accounting Standards Update No. 2015-01 “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”

· Accounting Standards Update No. 2014-16 “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity”

F-46

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and unless otherwise indicated)-(Continued)

· Accounting Standards Update No. 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” 

· Accounting Standards Update No. 2014-12 “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”

The following standards were effective for and adopted by the Company in 2015. The adoption of these standards did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows:

· Accounting Standards Update No. 2015-10 “Technical Corrections and Improvements: Amendments to the FASB Accounting Standards Codification”

· Accounting Standards Update No. 2015-08 “Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115”

· Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”

· Accounting Standards Update No. 2014-01 “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects”

F-47

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

R.R. Donnelley & Sons Company

Chicago, Illinois

We have audited the accompanying consolidated balance sheets of R.R. Donnelley & Sons Company and subsidiaries (the "Company") as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2015. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of R.R. Donnelley & Sons Company and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control- Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2016 expressed an unqualified opinion on the Company's internal control over financial reporting.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois

February 25, 2016

F-48

UNAUDITED INTERIM FINANCIAL INFORMATION

(In millions, except per-share data)

	Year Ended December 31,
	First Quarter			Second Quarter		Third Quarter		Fourth Quarter		Full Year
2015
Net sales	$	2,746.1		$	2,748.1	$	2,828.0	$	2,934.6	$	11,256.8
Gross profit		579.7			615.8		619.9		648.6		2,464.0
Income from operations		115.6			157.7		123.3		190.8		587.4
Net earnings attributable to RR Donnelley common shareholders		22.3			43.5		14.3		71.0		151.1
Net earnings per diluted share attributable to RR Donnelley common shareholders		0.11			0.21		0.07		0.34		0.73
Closing stock price high		19.69			20.13		18.00		17.22		20.13
Closing stock price low		15.66			17.43		14.31		14.40		14.31
Closing stock price at quarter-end		19.19			17.43		14.56		14.72		14.72
2014
Net sales	$	2,673.8		$	2,902.5	$	2,957.8	$	3,069.3	$	11,603.4
Gross profit		573.2			662.2		647.6		667.6		2,550.6
Income from operations		96.0			178.2		173.7		68.0		515.9
Net (loss) earnings attributable to RR Donnelley common shareholders		(29.0	)		64.7		62.2		19.5		117.4
Net (loss) earnings per diluted share attributable to RR Donnelley common shareholders (a)		(0.15	)		0.32		0.31		0.10		0.59
Closing stock price high		20.38			18.30		17.82		17.70		20.38
Closing stock price low		17.15			15.10		15.85		15.02		15.02
Closing stock price at quarter-end		17.90			16.96		16.46		16.81		16.81

(a) The full year amount does not equal the sum of the quarters due to rounding.

Reflects results of acquired businesses from the relevant acquisition dates.

_____________________

F-49

Includes the following significant items:

	Pre-tax												After-tax
	First Quarter		Second Quarter			Third Quarter		Fourth Quarter		Full Year			First Quarter		Second Quarter			Third Quarter		Fourth Quarter			Full Year
Year ended December 31, 2015
Restructuring, impairment and other charges – net	$	19.8	$	32.2		$	52.9	$	17.7	$	122.6		$	3.1	$	21.2		$	41.0	$	26.2		$	91.5
Loss on Venezuela currency remeasurement	29.9			0.4			—		—		30.3			16.0		1.0			—		—			17.0
Loss primarily related to the disposal of the Venezuelan operating entity		—	15.7				—		—		15.7			—	15.7				—		—			15.7
Acquisition-related expenses	10.5		3.3			0.3			0.2		14.3		10.5		2.7			0.2			0.3			13.7
Purchase accounting inventory adjustments		—	3.2			6.7			0.9		10.8			—	2.1			4.3			0.2			6.6
Spinoff-related transaction expenses		—		—		6.7			6.9		13.6			—		—		4.4			4.9			9.3
(Gain) loss from the sale of one of the Company’s affordable housing investments		—		(3.9	)		—		—		(3.9	)		—		(2.6	)		—		0.2			(2.4	)
Loss from the impairment of the Company’s investment in the Brazilian operations of Courier		—		—		2.8			—		2.8			—		—		2.8			—			2.8
Loss from the impairment of an equity investment		—		—			—		1.3		1.3			—		—			—		1.3			1.3
Tax expense (benefit) due to the receipt of an unfavorable court decision relating to payment of prior year taxes in the International segment		—		—			—		—		—			—		—			9.0		(3.0	)		6.0

	Pre-tax														After-tax
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter		Full Year			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Full Year
Year ended December 31, 2014
Restructuring, impairment and other charges – net	$	45.2		$	22.8		$	19.9		$	45.8	$	133.7		$	33.5		$	11.8		$	9.8		$	41.9		$	97.0
Pension settlement charges		—			—			—			95.7		95.7			—			—			—			58.4			58.4
Loss on debt extinguishment		77.1			—			—			—		77.1			49.8			—			—			—			49.8
Net loss (gain) on Venezuela currency remeasurement		21.8			(3.2	)		(0.6	)		0.4		18.4			7.8			(0.2	)		0.4			0.2			8.2
Loss on bankruptcy liquidation of RRDA, a subsidiary of RR Donnelley		—			—			16.4			—		16.4			—			—			14.2			—			14.2
Purchase accounting inventory adjustments		12.1			2.2			—			—		14.3			7.6			1.5			—			—			9.1
Net loss (gain) on sale of Journalism Online and GRES		0.8			(0.1	)		(11.1	)		—		(10.4	)		0.4			—			(6.8	)		—			(6.4	)
Net loss (gain) on bargain purchase of Esselte		(16.6	)		6.1			1.0			—		(9.5	)		(16.6	)		6.1			1.0			—			(9.5	)
Acquisition-related expenses		7.7			0.5			—			0.4		8.6			6.2			0.5			—			0.2			6.9
Gain from the sale of the  Company's shares of a previously impaired equity investment		—			—			(3.0	)		—		(3.0	)		—			—			(1.9	)		—			(1.9	)
Loss from the impairment of an equity investment		—			—			—			1.3		1.3			—			—			—			0.8			0.8
Tax benefit related to the decline in value and reorganization of an entity within the Strategic Services segment		—			—			—			—		—			—			—			—			(15.2	)		(15.2	)

F-50

INDEX TO EXHIBITS

2.1	Agreement and Plan of Merger by and among Courier Corporation, R. R. Donnelley & Sons Company, Raven Solutions, Inc. and Raven Ventures LLC, dated as of February 5, 2015 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated February 11, 2015)
3.1	Restated Certificate of Incorporation (incorporated by reference to Exhibit A to the Company’s Current Report on Form 8-K dated September 26, 2014, filed on September 26, 2014)
3.2	By-Laws of R.R. Donnelley & Sons Company, as amended as of February 20, 2014 (incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 26, 2014)
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 October 15, 2012, among the Company, as the borrower, certain of its subsidiaries, as guarantors, the lenders party thereto, 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 October 15, 2012, filed on October 16, 2012)
4.7	Amendment No. 1 to the Credit Agreement and Amendment No. 1 to the Security Agreement dated April 11, 2014, among the Company, as the borrower, certain of its subsidiaries, as guarantors, the lenders party thereto, 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 April 11, 2014, filed on April 14, 2014)
4.8	Amendment No. 2 to the Credit Agreement dated September 9, 2014, among the Company, as the borrower, certain of its subsidiaries, as guarantors, the lenders party thereto, 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 September 9, 2014, filed on September 15, 2014)
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 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed on May 7, 2015)*
10.4	Amended and Restated Non-Qualified Deferred Compensation Plan (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed on May 7, 2015)*
10.5	2012 Performance Incentive Plan (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, filed on July 30, 2013)*
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 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)*

E-1

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)*
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 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)*
10.12	Form of Restricted Stock Unit Award Agreement for certain executive officers (incorporated by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed on May 7, 2015)*
10.13	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)*
10.14	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)*
10.15	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)*
10.16	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)*
10.17	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)*
10.18	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)*
10.19	Form of Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.19 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed on May 7, 2015)*
10.20	Form of Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.23 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed on May 1, 2014)*
10.22	Form of Cash Retention Award Agreement (incorporated by reference to Exhibit 10.21 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed on April 25, 2013)*
10.24	Form of Long Term Incentive Cash Award Agreement (incorporated by reference to Exhibit 10.22 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed on May 1, 2014)*
10.25	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)*
10.26	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)*
10.27	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)*
10.29	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)*
10.30	Amended and Restated Employment Agreement dated as of November 21, 2008 between the Company and Andrew B. Coxhead (incorporated by reference to Exhibit 10.30 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed April 25, 2013)*

E-2

10.31	Form of Amended and Restated Indemnification Agreement for directors (incorporated by reference to Exhibit 10.31 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 26, 2014)*
10.32	Amended and Restated Annual Incentive Plan (incorporated by reference to Exhibit 10.32 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed on May 7, 2015)*
12	Statements of Computation of Ratio of Earnings to Fixed Charges (filed herewith)
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 (filed herewith)
23.1	Consent of Deloitte & Touche LLP (filed herewith)
24	Power of Attorney (filed herewith)
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)
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.

E-3

EX-12

Exhibit 12

RR Donnelley & Sons Company

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions, except ratios)

	Years ended December 31,
	2015			2014		2013		2012			2011
Earnings available for fixed charges:
Earnings (loss) from continuing operations before income taxes and noncontrolling interests	$	267.8		$	147.1	$	209.0	$	(640.0	)	$	(237.4	)
Less: Equity (loss) income of minority-owned companies included in earnings (loss) from continuing operations before income taxes and noncontrolling interests		0.2			0.4		0.1		0.2			(1.1	)
Less: (Loss) income attributable to noncontrolling interests		(12.7	)		3.4		7.0		(2.2	)		1.5
Add: Fixed charges before capitalized interest		338.6			342.4		322.2		314.4			307.4
Add: Amortization of capitalized interest		3.5			3.2		3.4		3.4			3.5
Total earnings available for fixed charges	$	622.4		$	488.9	$	527.5	$	(320.2	)	$	73.1
Fixed charges:
Interest expense	$	281.3		$	291.0	$	272.9	$	267.0		$	257.0
Interest portion of rental expense		57.3			51.4		49.3		47.4			50.4
Total fixed charges before capitalized interest		338.6			342.4		322.2		314.4			307.4
Capitalized interest		3.9			3.6		3.1		4.1			2.9
Total fixed charges	$	342.5		$	346.0	$	325.3	$	318.5		$	310.3
Ratio of earnings to fixed charges (a)		1.82			1.41		1.62		(1.01	)		0.24

(a) In 2012 and 2011 earnings (loss) were inadequate to cover fixed charges by $638.7  million and $237.2 million, respectively, due to certain charges in each year.

EX-21

EXHIBIT 21

R.R. Donnelley & Sons Company

Subsidiaries as of 2/24/2016

Entity Name	Domestic Jurisdiction
77 Cap General Partner, Inc.	Delaware
77 Capital Partners II., L.P.	Delaware
AGS Custom Graphics, Inc.	Maryland
American Lithographers, Inc.	California
American Pad & Paper LLC	Delaware
American Pad and Paper de Mexico S. de R.L. de C.V.	Mexico
Asia Printers Group Limited	Cayman Islands
Austin Printing Company	Georgia
Automated Graphic Systems, LLC	Maryland
Banta Corporation	Wisconsin
Banta Europe B.V.	Netherlands
Banta Global Turnkey (Shenzhen) Co., Ltd.	China
Banta Global Turnkey (Singapore) PTE LTD	Singapore
Banta Global Turnkey LLC	Texas
Banta Global Turnkey Ltd.	Ireland
Banta Global Turnkey, Ltd.	West Lothian
Banta Global Turnkey, s.r.o.	Czech Republic
Beijing Donnelley Printing Co., Ltd.	Beijing
bigINK Mailing & Fulfillment Company	Kansas
Bowne International Ltd.	England and Wales
Bowne International, L.L.C.	Delaware
Bridgetown Printing Co.	Oregon
Cardinal Brands Fabricacion S. de R.L. de C.V.	Mexico
Cardinal Brands Holding LLC	Delaware
CDS Publications, Inc.	Oregon
CGX Yamagata Japan GK	Japan
Chas. P. Young Company	Texas
Clear Visions, Inc.	Texas
Columbia Color, Inc.	California
Consolidated Carqueville Printing Company	Illinois
Consolidated Global Group, Inc.	Texas
Consolidated Graphics B.V.	Netherlands

Page 1 of 7

Entity Name	Domestic Jurisdiction
Consolidated Graphics de Mexico S. de R.L. de CV	Mexico
Consolidated Graphics International, Inc.	Delaware
Consolidated Graphics Print Management Group, Inc.	Delaware
Consolidated Graphics Properties II, Inc.	Texas
Consolidated Graphics Services, Inc.	Delaware
Consolidated Graphics Technology Services and Solutions, Inc.	Texas
Consolidated Graphics, Inc.	Texas
Copy-Mor, Inc.	Illinois
Courier Companies, Inc.	Massachusetts
Courier International Holdings, LLC	Delaware
Courier Kendallville, Inc.	Indiana
Courier New Media, Inc.	Massachusetts
Courier Printing Company	Tennessee
Courier Properties, Inc.	Massachusetts
Courier Publishing, Inc.	Massachusetts
Courier Technologia em Servicos Graficos Ltda	Brazil
CP Solutions, Inc.	Oklahoma
Critical Mail Continuity Services Limited	England and Wales
Data Entry Holdings Limited	Channel Islands
Data Entry International Limited	Cyprus
DDM-Digital Imaging, Data Processing and Mailing Services, L.C.	Florida
DEI Group Limited	England and Wales
Devonshire Appointments Limited	England and Wales
Devonshire GmbH	Germany
Devonshire Recruitment Group Limited	England and Wales
Devonshire Sp. z o.o	Poland
Digital Page Grafica e Editora S.A.	Brazil
Direct Color, Inc.	California
Dongguan Donnelley Printing Co., Ltd.	China
Donnelley Cochrane Grafica Editora Do Brasil Ltda.	Brazil
Dover Publications, Inc.	New York
Eagle Press, Inc.	California
e-doc Group Pension Scheme Trustee Limited	England and Wales
edotech Trustee Company Limited	England and Wales
EGT Printing Solutions, LLC	Michigan
Electric City Printing Company	South Carolina

Page 2 of 7

Entity Name	Domestic Jurisdiction
Emerald City Graphics, Inc.	Washington
Fittje Bros. Printing Co.	Colorado
Frederic Printing Company	Colorado
Garner Printing Company	Iowa
Gilliland Printing, Inc.	Kansas
Graphic Technology of Maryland, Inc.	Maryland
Graphics Group, Inc., The	Texas
GSL Fine Lithographers	California
Gulf Printing Company	Texas
H&N Printing & Graphics, Inc.	Maryland
Hennegan Company, The	Kentucky
Hickory Printing Solutions, LLC	North Carolina
Impresora Donneco Internacional, S. de R.L. de C.V.	Mexico
Ironwood Lithographers, Inc.	Arizona
Jackson Group LLC, The	Indiana
Jarvis Press, Inc., The	Texas
Kelmscott Communications LLC	Delaware
Keys Printing Company	South Carolina
King Yip (Dongguan) Printing & Packaging Factory Ltd.	China
LibreDigital, Inc.	Delaware
Lincoln Printing Corporation	Indiana
LLC "R.R. Donnelley"	Moscow
Maxwell Graphic Arts, Inc.	New Jersey
McKay Press, Inc., The	Michigan
Mercury Printing Company, LLC	Tennessee
Metropolitan Printing Services, LLC	Indiana
Moore (St.Lucia) Ltd	St. Lucia
Moore Canada Corporation	Nova Scotia
Moore International B.V.	Netherlands
Moore Paragon (Caribbean) Limited	Barbados
Moore Response Marketing BVBA	Belgium
Moore Response Marketing GmbH	Germany
Moore Trinidad Ltd	Trinidad
Moore-Langen Printing Company, Inc.	Indiana
Mount Vernon Printing Company	Maryland
National Publishing Company	Pennsylvania

Page 3 of 7

Entity Name	Domestic Jurisdiction
Nies/Artcraft, Inc.	Missouri
OfficeTiger BV	Netherlands
OfficeTiger Holdings Inc.	Delaware
OfficeTiger LLC	Delaware
PBM Graphics, Inc.	North Carolina
PCA, LLC	Maryland
Piccari Press, Inc.	Pennsylvania
Precision Litho, Inc.	California
Pride Printers, Inc.	Massachusetts
Printing Control Services Incorporated	Washington
Printing, Inc.	Kansas
R R Donnelley Outsource (Private) Limited	Sri Lanka
R. R. Donnelley (Europe) LLC	Delaware
R. R. Donnelley (Santiago) Holdings LLC	Delaware
R. R. Donnelley (U.K.) Limited	England and Wales
R. R. Donnelley Business Communication Services Limited	England and Wales
R. R. Donnelley Chile Limitada	Chile
R. R. Donnelley de Costa Rica, S.A.	Costa Rica
R. R. Donnelley de El Salvador, S.A. de C.V.	El Salvador
R. R. Donnelley de Guatemala, S.A.	Guatemala
R. R. Donnelley de Honduras, S.A. de C.V.	Honduras
R. R. Donnelley de Mexico S. de R.L. de C.V.	Mexico
R. R. Donnelley Deutschland GmbH	Frankfurt/Main
R. R. Donnelley Document Solutions (Germany) GmbH	Germany
R. R. Donnelley Document Solutions (Ireland) Limited	Ireland
R. R. Donnelley Document Solutions Sp. z.o.o.	Poland
R. R. Donnelley Europe B.V.	Netherlands
R. R. Donnelley Europe Sp. z o.o	Poland
R. R. Donnelley Global, Inc	Delaware
R. R. Donnelley Holdings C.V.	Netherlands
R. R. Donnelley Holdings Mexico, S. de R.L. de C.V.	Mexico
R. R. Donnelley Hungary Printing and Trading Limited Liability Company	Hungary
R. R. Donnelley Latin America L.L.C.	Delaware
R. R. Donnelley Luxembourg SARL	Luxembourg
R. R. Donnelley Netherlands B.V.	Netherlands
R. R. Donnelley Printing (France) SARL	France

Page 4 of 7

Entity Name	Domestic Jurisdiction
R. R. Donnelley Printing Company	Delaware
R. R. Donnelley Publishing India Private Limited	India
R. R. Donnelley Roman Financial Limited	Hong Kong
R.R. Donnelley (U.K.) Directory Limited	England and Wales
R.R. Donnelley de Puerto Rico, Corp.	Puerto Rico
R.R. Donnelley Holdings B.V.	Netherlands
R.R. Donnelley Limited	England and Wales
R.R. Donnelley Operaciones, S. de R.L. de C.V.	Mexico
Raven Ventures LLC	Massachusetts
Research & Education Association, Inc.	Delaware
Roman Financial Press (Holdings) Limited	British Virgin Islands
RR Donnelley (Australia) Pty Limited	Victoria
RR Donnelley (Chengdu) Printing Co., Ltd.	Chengdu
RR Donnelley (China) Holding Co., Ltd.	China
RR Donnelley (Mauritius) Holdings Ltd	Mauritius
RR Donnelley (Shanghai) Commercial Co., Ltd.	China
RR Donnelley (Shanghai) Information Technology Co., Ltd.	Shanghai
RR Donnelley Alabuga LLC	Republic of Tatarstan
RR Donnelley Asia Printing Solutions Limited	Hong Kong
RR Donnelley Asia Printing Solutions Limited Taiwan Branch	China
RR Donnelley Belgium BVBA	Belgium
RR Donnelley Communication Solutions (France) SAS	France
RR Donnelley Document Solutions (Netherlands) B.V.	Netherlands
RR Donnelley Document Solutions SAS	France
RR Donnelley Editora e Grafica Ltda.	Brazil
RR Donnelley Electronics (Suzhou) Co., Ltd.	Jiangsu Province
RR Donnelley Electronics (Wuhan) Co., Ltd.	China
RR Donnelley Financial Comunicaçao Corporativa Ltda.	Brazil
RR Donnelley Financial Ireland Limited	Ireland
RR Donnelley Financial, Inc.	Delaware
RR Donnelley Global Business Process Outsourcing Limited	England and Wales
RR Donnelley Global Document Solutions Group Limited	England and Wales
RR Donnelley Global Turnkey Solutions (Kunshan) Co., Ltd.	China
RR Donnelley Global Turnkey Solutions Limited	Ireland
RR Donnelley Global Turnkey Solutions Mexico, S. de R.L. de C.V.	Mexico
RR Donnelley Holdings Japan GK	Japan

Page 5 of 7

Entity Name	Domestic Jurisdiction
RR Donnelley Holdings Venezuela, S.A.	Venezuela
RR Donnelley India Outsource Private Limited	Chennai
RR Donnelley International de Mexico, S.A. de C.V.	Mexico
RR Donnelley Italy S.r.l.	Italy
RR Donnelley Japan, Inc.	Tokyo
RR Donnelley Korea Electronic Solution LLC	Korea
RR Donnelley Logistics Services Worldwide, Inc.	Delaware
RR Donnelley Philippines Inc.	Philippines
RR Donnelley Prague s.r.o	Czech Republic
RR Donnelley Singapore Pte Ltd.	Singapore
RR Donnelley Spain, S.L.	Spain
RRD BPO Holdings Limited	England and Wales
RRD Canada Financial Company	Nova Scotia
RRD Dutch Holdco, Inc.	Delaware
RRD Financial of New York City, L.L.C.	New York
RRD GDS Holdings (Europe) Limited (In Liquidation)	England and Wales
RRD GDS Limited	England and Wales
RRD Holdings C.V.	Netherlands
RRD Netherlands LLC	Delaware
RRD Pendaflex de Mexico, S. de R.L. de C.V.	Mexico
RRD Pendaflex de Reynosa, S. de R.L. de C.V.	Mexico
RRD Secaucus Financial, Inc.	New York
RRD SSC Europe BVBA	Belgium
RRD Starachowice sp. z o.o.	Poland
Rush Press, Inc.	California
S & S Graphics, LLC	Maryland
Shanghai Donnelley PreMedia Technology Co., Ltd.	Shanghai
Shenzhen Donnelley Printing Co., Ltd.	China
Sierra Industrial S. de R.L. de C.V.	Mexico
South China Printing (Holdings) Ltd.	Cayman Islands
South China Printing Company Limited	Hong Kong
Spangler Graphics Property, LLC	Kansas
Spangler Graphics, LLC	Kansas
StorterChilds Printing Co., Inc.	Florida
Superior Colour Graphics, Inc.	Michigan
Tewell Warren Printing Company	Colorado

Page 6 of 7

Entity Name	Domestic Jurisdiction
Theo. Davis Sons, Incorporated	North Carolina
Thousand Oaks Printing & Specialties, Inc.	California
TOPS SLT Newco LLC	Delaware
Tucker Printers, Inc.	Texas
Valcour Printing, Inc.	Missouri
Veritas Document Solutions, LLC	Delaware
Walnut Circle Press, Inc.	North Carolina
Watermark Press, Ltd.	California
Wentworth Corporation	South Carolina
Westland Printers, Inc.	Maryland
Wetzel Brothers, LLC	Wisconsin
Woodridge Press, Inc.	California
work-bench co-op LLC	Delaware
work-bench ventures I, LLC	Delaware

Page 7 of 7

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-83414, 333-80995, 333-113258, 333-159393, 333-186881 and 333-190187 on Form S-8, and Registration Statement No. 333-192570 and 333-202945 on Form S-4 of our reports dated February 25, 2016, relating to the consolidated financial statements of R.R. Donnelley & Sons Company and subsidiaries (the “Company”), and the effectiveness of the Company’s internal control over financial reporting, appearing in this Annual Report on Form 10-K of R.R. Donnelley & Sons Company and Subsidiaries for the year ended December 31, 2015.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois
February 25, 2016

EX-24

EXHIBIT 24

POWER OF ATTORNEY

KNOW ALL BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Suzanne S. Bettman, Andrew B. Coxhead and Daniel N. Leib, or any of them, his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, in any and all capacities, to sign the Annual Report on Form 10-K of R.R. Donnelley & Sons Company for its fiscal year ended December 31, 2015 and any and all amendments thereto, and to file the same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or her substitute, may lawfully do or cause to be done by virtue hereof. This Power of Attorney shall be effective from the date on which it is signed until June 30, 2016.

Dated:  February 18, 2016

/s/ Susan M. Cameron	/s/ Richard K. Palmer
Susan M. Cameron		Richard K. Palmer
/s/ Richard L. Crandall	/s/ John C. Pope
Richard L. Crandall		John C. Pope
/s/ Susan M. Gianinno	/s/ Michael T. Riordan
Susan M. Gianinno		Michael T. Riordan
/s/ Judith H. Hamilton	/s/ Oliver R. Sockwell
Judith H. Hamilton		Oliver R. Sockwell
/s/ Jeffrey G. Katz
Jeffrey G. Katz

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 Annual Report on Form 10-K 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 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 the registrant’s board of directors (or persons performing the equivalent functions):
	(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: February 25, 2016

/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 Annual Report on Form 10-K 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 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 the registrant’s board of directors (or persons performing the equivalent functions):
	(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: February 25, 2016

/s/    DANIEL N. LEIB

Daniel N. Leib

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

CERTIFICATION PURSUANT TO RULE 13a-14(b) OR RULE 15d-14(b)

AND SECTION 1350 OF 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 Annual Report of R. R. Donnelley & Sons Company (the “Company”) on Form 10-K for the period ending December 31, 2015 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 to the best of my knowledge:

(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 results of operations of the Company.

February 25, 2016

/s/    THOMAS J. QUINLAN, III

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) OR RULE 15d-14(b)

AND SECTION 1350 OF 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 Annual Report of R. R. Donnelley & Sons Company (the “Company”) on Form 10-K for the period ending December 31, 2015 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 to the best of my knowledge:

(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 results of operations of the Company.

February 25, 2016

/s/    DANIEL N. LEIB

Daniel N. Leib

Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 19, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	RRD
Entity Registrant Name	RR Donnelley & Sons Co
Entity Central Index Key	0000029669
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		208,766,693
Entity Public Float			$ 3,607,975,994

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Products net sales	$ 9,323.6	$ 9,715.2	$ 8,765.8
Services net sales	1,933.2	1,888.2	1,714.5
Total net sales	11,256.8	11,603.4	10,480.3
Products cost of sales (exclusive of depreciation and amortization)	7,282.3	7,581.6	6,816.9
Services cost of sales (exclusive of depreciation and amortization)	1,510.5	1,471.2	1,332.9
Total cost of sales	8,792.8	9,052.8	8,149.8
Products gross profit	2,041.3	2,133.6	1,948.9
Services gross profit	422.7	417.0	381.6
Total gross profit	2,464.0	2,550.6	2,330.5
Selling, general and administrative expenses (exclusive of depreciation and amortization)	1,300.0	1,427.0	1,181.5
Restructuring, impairment and other charges-net (Note 3)	122.6	133.7	133.5
Depreciation and amortization	454.0	474.0	435.8
Income from operations	587.4	515.9	579.7
Interest expense-net (Note 13)	276.0	282.1	261.4
Investment and other expense-net	43.6	9.6	27.4
Loss on debt extinguishment	0.0	77.1	81.9
Earnings before income taxes	267.8	147.1	209.0
Income tax expense (benefit) (Note 12)	129.4	26.3	(9.2)
Net earnings	138.4	120.8	218.2
Less: (Loss) income attributable to noncontrolling interests	(12.7)	3.4	7.0
Net earnings attributable to RR Donnelley common shareholders	$ 151.1	$ 117.4	$ 211.2
Net earnings per share attributable to RR Donnelley common shareholders (Note 15):
Basic net earnings per share	$ 0.73	$ 0.59	$ 1.16
Diluted net earnings per share	$ 0.73	$ 0.59	$ 1.15
Weighted average number of common shares outstanding
Basic	205.6	198.5	181.9
Diluted	206.8	200.0	183.5

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 138.4	$ 120.8	$ 218.2
Other comprehensive (loss) income, net of tax (Note 16):
Translation adjustments	(55.7)	(45.2)	(22.8)
Adjustment for net periodic pension and other postretirement benefits plan cost	34.8	(240.9)	563.7
Change in fair value of derivatives	0.1	0.1	0.4
Other comprehensive (loss) income	(20.8)	(286.0)	541.3
Comprehensive income (loss)	117.6	(165.2)	759.5
Less: comprehensive (loss) income attributable to noncontrolling interests	(13.9)	2.9	7.2
Comprehensive income (loss) attributable to RR Donnelley common shareholders	$ 131.5	$ (168.1)	$ 752.3

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 389.6	$ 527.9
Receivables, less allowances for doubtful accounts of $41.5 in 2015 (2014 - $44.3) (Note 5)	2,000.4	2,033.8
Inventories (Note 6)	592.0	586.2
Prepaid expenses and other current assets	119.7	225.4
Total current assets	3,101.7	3,373.3
Property, plant and equipment-net (Note 7)	1,448.1	1,515.5
Goodwill (Note 4)	1,743.6	1,706.6
Other intangible assets-net (Note 4)	438.0	423.7
Deferred income taxes (Note 12)	178.2	234.1
Other noncurrent assets	369.7	355.6
Total assets	7,279.3	7,608.8
LIABILITIES
Accounts payable	1,322.3	1,296.6
Accrued liabilities (Note 9)	780.4	867.3
Short-term and current portion of long-term debt (Note 13)	234.6	203.4
Total current liabilities	2,337.3	2,367.3
Long-term debt (Note 13)	3,188.3	3,398.6
Pension liabilities (Note 11)	514.4	616.1
Other postretirement benefits plan liabilities (Note 11)	168.8	210.8
Other noncurrent liabilities	373.9	395.6
Total liabilities	$ 6,582.7	$ 6,988.4
Commitments and Contingencies (Note 10)
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: 267.0 shares in 2015 (2014 - 259.0 shares)	$ 333.7	$ 323.7
Additional paid-in-capital	3,164.3	3,041.5
Accumulated deficit	(620.6)	(559.1)
Accumulated other comprehensive loss	(793.2)	(773.6)
Treasury stock, at cost, 58.2 shares in 2015 (2014 - 59.2 shares)	(1,401.5)	(1,438.7)
Total RR Donnelley shareholders' equity	682.7	593.8
Noncontrolling interests	13.9	26.6
Total equity	696.6	620.4
Total liabilities and equity	$ 7,279.3	$ 7,608.8

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 41.5	$ 44.3
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	267,000,000	259,000,000
Treasury stock, shares	58,200,000	59,200,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net earnings	$ 138.4	$ 120.8	$ 218.2
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment charges	36.5	47.3	21.5
Depreciation and amortization	454.0	474.0	435.8
Provision for doubtful accounts receivable	15.4	16.9	18.2
Share-based compensation	17.3	17.7	19.9
Deferred income taxes	(36.1)	(87.0)	(41.1)
Changes in uncertain tax positions	1.3	(3.0)	(18.6)
Loss (gain) on investments and other assets - net	14.3	(3.9)	21.5
Loss related to Venezuela currency remeasurement - net	30.3	18.4	3.2
Loss on debt extinguishment	0.0	77.1	81.9
Net pension and other postretirement benefits plan income	(44.5)	(48.7)	(18.3)
Loss on pension settlement		95.7
Gain on bargain purchase		(9.5)
Other	22.1	44.0	(5.1)
Changes in operating assets and liabilities - net of acquisitions:
Accounts receivable - net	(17.6)	(49.6)	13.4
Inventories	16.0	(14.1)	5.3
Prepaid expenses and other current assets	26.3	(10.8)	(4.6)
Accounts payable	61.0	81.4	(66.0)
Income taxes payable and receivable	46.9	(3.0)	(38.1)
Accrued liabilities and other	(104.0)	0.9	77.3
Pension and other postretirement benefits plan contributions	(25.6)	(41.9)	(29.6)
Net cash provided by operating activities	652.0	722.7	694.8
INVESTING ACTIVITIES
Capital expenditures	(207.6)	(223.6)	(216.6)
Acquisitions of businesses, net of cash acquired	(118.2)	(380.8)	0.4
Disposition of businesses	0.6	(1.6)	(12.0)
Proceeds from sales of investments and other assets	27.1	42.7	13.0
Transfers (to)/from restricted cash	(0.5)	(12.3)	3.4
Other investing activities	(18.5)	(1.6)	(0.6)
Net cash used in investing activities	(317.1)	(577.2)	(212.4)
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		400.0	1,197.8
Net change in short-term debt	11.9	(0.4)	(3.2)
Payments of current maturities and long-term debt	(272.7)	(811.5)	(830.4)
Debt issuance costs		(13.7)	(20.4)
Dividends paid	(212.6)	(203.1)	(188.5)
Proceeds (payments) to settle forward contracts	33.3	24.0	(38.0)
Other financing activities	3.6	(0.4)	5.5
Net cash (used in) provided by financing activities	(436.5)	(605.1)	122.8
Effect of exchange rate on cash and cash equivalents	(36.7)	(40.9)	(7.5)
Net (decrease) increase in cash and cash equivalents	(138.3)	(500.5)	597.7
Cash and cash equivalents at beginning of year	527.9	1,028.4	430.7
Cash and cash equivalents at end of period	389.6	527.9	$ 1,028.4
Supplemental non-cash disclosure:
Settlement of accounts receivable for acquisition of a business	8.6
Consolidated Graphics, Esselte and MultiCorpora
Adjustments to reconcile net earnings to net cash provided by operating activities:
Gain on bargain purchase		(9.5)
Supplemental non-cash disclosure:
Issuances of shares of RR Donnelley stock for acquisitions of businesses		$ 319.0
Courier Corporation
Supplemental non-cash disclosure:
Issuances of shares of RR Donnelley stock for acquisitions of businesses	$ 155.2

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares shares in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Consolidated Graphics, Esselte and MultiCorpora
Issuance of stock for acquisitions of businesses		17.0
Courier Corporation
Issuance of stock for acquisitions of businesses	8.1

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss	Total RR Donnelley's Shareholders' Equity	Noncontrolling Interest
Balance at Dec. 31, 2012	$ 68.7	$ 303.7	$ 2,839.4	$ (1,565.0)	$ (496.1)	$ (1,029.2)	$ 52.8	$ 15.9
Balance (in shares) at Dec. 31, 2012		243.0		(62.6)
Net earnings	218.2				211.2		211.2	7.0
Other comprehensive (loss) income	541.3					541.1	541.1	0.2
Share-based compensation	19.9		19.9				19.9
Issuance of share-based awards, net of withholdings and other	(4.7)		(56.9)	$ 52.2			(4.7)
Issuance of share-based awards, net of withholdings and other (in shares)				1.4
Cash dividends paid	(188.5)				(188.5)		(188.5)
Distributions to noncontrolling interests	(1.2)						0.0	(1.2)
Balance at Dec. 31, 2013	653.7	$ 303.7	2,802.4	$ (1,512.8)	(473.4)	(488.1)	631.8	21.9
Balance (in shares) at Dec. 31, 2013		243.0		(61.2)
Net earnings	120.8				117.4		117.4	3.4
Other comprehensive (loss) income	(286.0)					(285.5)	(285.5)	(0.5)
Share-based compensation	17.7		17.7				17.7
Issuances of common stock	300.7	$ 20.0	280.7				300.7
Issuances of common stock (in shares)		16.0
Issuances of treasury stock	18.3		(14.3)	$ 32.6			18.3
Issuances of treasury stock (in shares)				1.0
Issuance of share-based awards, net of withholdings and other	(3.5)		(45.0)	$ 41.5			(3.5)
Issuance of share-based awards, net of withholdings and other (in shares)				1.0
Cash dividends paid	(203.1)				(203.1)		(203.1)
Noncontrolling interests in acquired business	2.7						0.0	2.7
Distributions to noncontrolling interests	(0.9)						0.0	(0.9)
Balance at Dec. 31, 2014	620.4	$ 323.7	3,041.5	$ (1,438.7)	(559.1)	(773.6)	593.8	26.6
Balance (in shares) at Dec. 31, 2014		259.0		(59.2)
Net earnings	138.4				151.1		151.1	(12.7)
Other comprehensive (loss) income	(20.8)					(19.6)	(19.6)	(1.2)
Share-based compensation	17.3		17.3				17.3
Issuances of common stock	154.2	$ 10.0	144.2				154.2
Issuances of common stock (in shares)		8.0
Issuances of treasury stock	1.0		(1.2)	$ 2.2			1.0
Issuances of treasury stock (in shares)				0.1
Issuance of share-based awards, net of withholdings and other	(2.5)		(37.5)	$ 35.0			(2.5)
Issuance of share-based awards, net of withholdings and other (in shares)				0.9
Cash dividends paid	(212.6)				(212.6)		(212.6)
Noncontrolling interests in acquired business	4.6						0.0	4.6
Noncontrolling interests in disposed businesses	(2.4)						0.0	(2.4)
Distributions to noncontrolling interests	(1.0)						0.0	(1.0)
Balance at Dec. 31, 2015	$ 696.6	$ 333.7	$ 3,164.3	$ (1,401.5)	$ (620.6)	$ (793.2)	$ 682.7	$ 13.9
Balance (in shares) at Dec. 31, 2015		267.0		(58.2)

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Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 1. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation —The accompanying consolidated 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”). All intercompany transactions have been eliminated in consolidation. The accounts of businesses acquired during 2015 and 2014 are included in the consolidated financial statements from the dates of acquisition. There were no acquisitions during the year ended December 31, 2013 (see Note 2).

Nature of Operations —The Company helps organizations communicate more effectively by working to create, manage, produce, distribute and process content on behalf of our customers. The Company assists customers in developing and executing multichannel communication strategies that engage audiences, reduce costs, drive revenues and increase compliance. R.R. Donnelley’s innovative technologies enhance digital and print communications to deliver integrated messages across multiple media to highly targeted audiences at optimal times for clients in virtually every private and public sector. Strategically located operations provide local service and responsiveness while leveraging the economic, geographic and technological advantages of a global organization.

Proposed Spinoff Transactions —On August 4, 2015, the Company announced that its Board of Directors intends to create three independent public companies: (i) a financial communications services company (“Donnelley Financial Solutions”), (ii) a publishing and retail-centric print services company (“LSC Communications”), and (iii) a multichannel communications management company (“RR Donnelley & Sons Company”). Donnelley Financial Solutions is expected to consist of the Company’s current financial reporting unit of the Company’s Strategic Services segment.  LSC Communications is expected to consist of the Company’s current Publishing and Retail Services segment as well as the office products reporting unit from the Company’s Variable Print segment, substantially all of the operations currently within the Europe reporting unit of the Company’s International segment, certain Mexican operations currently within the Latin America reporting unit of the Company’s International segment and the co-mail and related list services operations currently within the logistics reporting unit of the Company’s Strategic Services segment.  RR Donnelley & Sons Company is expected to consist of the current Variable Print segment except for the office products reporting unit that will become part of LSC Communications, the logistics reporting unit within the current Strategic Services segment except for the operations that will become part of LSC Communications, the sourcing and digital and creative solutions reporting units within the current Strategic Services segment, and the current International segment except for substantially all of the Europe reporting unit and certain Mexican operations that will become part of LSC Communications. The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of shares of stock in two new, independent, publicly traded companies, Donnelley Financial Solutions and LSC Communications. Immediately following the completion of the transactions existing RR Donnelley shareholders will own shares in all three companies.

The transactions are subject to customary conditions, including obtaining rulings from the Internal Revenue Service and/or tax opinions, execution of inter-company agreements and final approval by the Company’s Board of Directors. The Company expects to complete the transactions in October 2016, but there can be no assurance that the transactions will be completed on the anticipated timeline or at all or that the terms of the transactions will not change.

Upon separation, the historical results of Donnelley Financial Solutions and LSC Communications will be presented as discontinued operations.

Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, self-insurance reserves, taxes, restructuring and other provisions and contingencies.

Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be permanently reinvested. Since January 1, 2010, the three-year cumulative inflation for Venezuela using the blended Consumer Price Index and National Consumer Price Index has exceeded 100%. As a result, Venezuela’s economy is considered highly inflationary and the financial statements of the Company’s Venezuelan entities are remeasured as if the functional currency were the U.S. Dollar. See Note 21 for further discussion.

Fair Value Measurements— Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its foreign exchange forward contracts, interest rate swaps, pension plan assets and other postretirement plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

Revenue Recognition —The Company recognizes revenue for the majority of its products upon transfer of title and the passage of the risk of ownership, which is generally upon shipment to the customer. Contracts generally specify F.O.B. shipping point terms. Under agreements with certain customers, custom products may be stored by the Company for future delivery. In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides. In certain of these cases, delivery and billing schedules are outlined in the customer agreement and product revenue is recognized when manufacturing is complete, title and risk of ownership transfer to the customer, and there is a reasonable assurance as to collectability. Because the majority of products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale.  

Revenue from services is recognized as services are performed. For the Company’s logistics operations, whose operations include the delivery of printed material and other products, the Company recognizes revenue upon completion of the delivery of services. Within the Company’s financial operations, which serve the global financial services end market, the Company files highly customized materials such as regulatory S-filings and initial public offerings with the SEC on behalf of its customers, and performs XBRL and EDGAR-related services. Revenue is recognized for these services upon completion of the service performed or following final delivery of the related printed product. Within the Company’s business process outsourcing operations, the Company provides various outsourcing services. Depending on the nature of the service performed, revenue is recognized for outsourcing services either as services are rendered or upon completion of the service. Revenues related to the Company’s digital and creative solutions operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer.

The Company records deferred revenue in situations where amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met.

Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for third-party shipping and handling costs as well as certain postage costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross. In the Company’s Global Turnkey Solutions operations, contracts are evaluated using various criteria to determine if revenue for components and other materials should be recognized on a gross or net basis. In general, these revenues are recognized on a gross basis if the Company has control over selecting vendors and pricing, is the primary obligor in the arrangement, bears all credit risk and bears the risk of loss for inventory in its possession. Revenue from contracts that do not meet these criteria is recognized on a net basis. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis.

The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

By-product recoveries —The Company records the sale of by-products as a reduction of cost of sales.

Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations.

Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s consolidated net sales in 2015, 2014 or 2013. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 5 for details of activity affecting the allowance for doubtful accounts receivable.

Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. The cost of 57.6% and 59.8% of the inventories at December 31, 2015 and 2014, respectively, has been determined using the Last-In, First-Out (LIFO) method. This method is intended to reflect the effect of inventory replacement costs within results of operations; accordingly, charges to cost of sales generally reflect recent costs of material, labor and factory overhead. The Company uses an external-index method of valuing LIFO inventories. The remaining inventories, primarily related to certain acquired and international operations, are valued using the First-In, First-Out (FIFO) or specific identification methods.

Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.

Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.

Goodwill —Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. The annual goodwill impairment test for 2013 was performed based on the Company’s previous organization structure prior to the reorganization of the Company’s reportable segments in the fourth quarter of 2013.

For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed.

For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. If the carrying value exceeds the reporting unit’s fair value, the Company performs an additional fair value measurement calculation to determine the impairment loss, which is charged to operations in the period identified. See Note 3 for further discussion.

The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s interim review for indicators of impairment as of December 31, 2015, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying value.

Amortization —Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of five years. Amortization expense, primarily related to internally-developed software and excluding amortization expense related to other intangible assets, was $44.0 million, $41.2 million and $34.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Deferred debt issuance costs are amortized over the term of the related debt. Other intangible assets, except for those intangible assets with indefinite lives, are recognized separately from goodwill and are amortized over their estimated useful lives. Other intangible assets with indefinite lives are not amortized. See Note 4 for further discussion of other intangible assets and the related amortization expense.

Financial Instruments —The Company uses derivative financial instruments to hedge exposures to interest rate and foreign exchange fluctuations in the ordinary course of business.

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities on the balance sheet at their respective fair values with unrealized gains and losses recorded in comprehensive income (loss), net of applicable income taxes, or in the results of operations, depending on the purpose for which the derivative is held. 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 results 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 results of operations. At 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 of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the results of operations.

The Company’s foreign exchange forward contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign exchange forward contracts on a net basis when possible. Foreign exchange forward contracts that can be settled on a net basis are presented net in the Consolidated Balance Sheets. Interest rate swaps are settled on a gross basis and presented gross in the Consolidated Balance Sheets. See Note 14 for further discussion.

Share-Based Compensation —The Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options, restricted stock units and performance share units. The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. See Note 17 for further discussion.

Pension and Other Postretirement Benefits Plans —The Company records annual income and expense amounts relating to its pension and other postretirement benefit plans based on calculations which include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, turnover rates and healthcare cost trend rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. See Note 11 for further discussion.

Taxes on Income —Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company recognizes deferred tax liabilities related to taxes on certain foreign earnings that are not considered to be permanently reinvested. No deferred tax liabilities are recognized for foreign earnings that are considered to be permanently reinvested. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its 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 tax liabilities.

The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s financial statements. The Company adjusts such reserves upon changes in circumstances that would cause a change to the estimate of the ultimate liability, upon effective settlement or upon the expiration of the statute of limitations, in the period in which such event occurs. See Note 12 for further discussion.

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Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions and Dispositions

Note 2. Acquisitions and Dispositions

2015 Acquisitions

On June 8, 2015, the Company acquired Courier Corporation (“Courier”), a leader in digital printing and publishing primarily in the United States, specializing in educational, religious and trade books. The acquisition expanded the Company’s digital printing and content management capabilities. The purchase price for Courier was $137.3 million in cash and 8.0 million shares of RR Donnelley common stock, or a total transaction value of $291.5 million based on the Company’s closing share price on June 5, 2015, plus the assumption of Courier’s debt of $78.2 million. Courier had $20.9 million of cash as of the date of acquisition. Immediately following the acquisition, the Company repaid substantially all of the debt assumed. Courier’s book manufacturing operations are included in the Publishing and Retail Services segment, publishing operations are included in the Strategic Services segment and Brazilian operations are included in the International segment.

For the year ended December 31, 2015, the Company’s Consolidated Financial Statements included net sales of $185.6 million and a loss before income taxes of $13.1 million related to the Courier acquisition, including restructuring, impairment and other charges of $31.3 million and a charge of $10.8 million resulting from an inventory purchase accounting adjustment.  

For the year ended December 31, 2015, the Company recorded $14.3 million of acquisition-related expenses associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Consolidated Statements of Operations.

The Courier acquisition was recorded by allocating the cost of the acquisition to the assets acquired, including other intangible assets, based on their estimated fair values at the acquisition date.  The excess of the cost over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill associated with this acquisition is primarily attributable to the synergies expected to arise as a result of the acquisition.

In addition to the acquisition of Courier, the Company completed three insignificant acquisitions in 2015, one of which included the settlement of accounts receivable in exchange for the acquisition of the business.  

The tax deductible goodwill related to acquisitions was $17.3 million.

Based on the valuations, the final purchase price allocation for the Courier acquisition as well as the purchase price allocation for three insignificant acquisitions was as follows:

Accounts receivable	$	36.2
Inventories		59.0
Prepaid expenses and other current assets		38.8
Property, plant and equipment		163.8
Other intangible assets		108.8
Other noncurrent assets		7.9
Goodwill		66.3
Accounts payable and accrued liabilities		(24.6	)
Other noncurrent liabilities		(10.5	)
Deferred taxes-net		(83.7	)
Total purchase price-net of cash acquired		362.0
Less: debt assumed		80.2
Less: settlement of accounts receivable for acquisition of a business		8.6
Less: value of common stock issued		155.2
Net cash paid	$	118.0

The fair values of other intangible assets, technology and goodwill associated with the acquisition of Courier were determined to be Level 3 under the fair value hierarchy.  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	$	98.4	Excess earnings	Discount rate Attrition rate	14.0% - 17.0% 0.0% - 7.5%
Trade names		10.1	Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	12.0% 0.3% - 1.0%
Technology	1.6		Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	11.0% 15.0%
Non-compete agreement		0.3	Excess earnings	Discount rate		17.0%

The fair values of property, plant and equipment associated with the Courier acquisition were determined to be Level 3 under the fair value hierarchy and were estimated using either the market approach, if a secondhand market existed, or cost approach.

2015 Disposition

On April 29, 2015, the Company sold its 50.1% interest in its Venezuelan operating entity. The proceeds were de minimis, and the sale resulted in a net loss of $14.7 million, which was recognized in net investment and other expense in the Consolidated Statement of Operations for the year ended December 31, 2015. The Company’s Venezuelan operations had net sales of $16.3 million and a loss before income taxes of $38.4 million, including the net loss as a result of the sale, for the year ended December 31, 2015. For the years ended December 31, 2014 and 2013, the Company’s Venezuelan operations had net sales of $101.5 million and earnings before income taxes of $4.3 million and net sales of $97.5 million and earnings before income taxes of $16.0 million, respectively. The operations of the Venezuela business were included in the International segment.

2014 Acquisitions

On March 25, 2014, the Company acquired substantially all of the North American operations of Esselte Corporation (“Esselte”), a developer and manufacturer of nationally branded and private label office and stationery products. The acquisition, combined with the Company’s existing products, created a more competitive and efficient office products supplier capable of supplying enhanced offerings across the combined customer base. The purchase price for Esselte included $82.3 million in cash and 1.0 million shares of RR Donnelley common stock, or a total transaction value of $100.6 million based on the Company’s closing share price on March 24, 2014. Esselte’s operations are included in the Variable Print segment.

On March 10, 2014, the Company acquired the assets of MultiCorpora R&D Inc. and MultiCorpora International Inc. (together “MultiCorpora”) for approximately $6.0 million. MultiCorpora is an international provider of translation technology solutions. The acquisition of MultiCorpora expanded the capabilities of the Company’s translation services offering which supports clients’ multi-lingual communications. MultiCorpora’s operations are included in the Strategic Services segment.

On January 31, 2014, the Company acquired Consolidated Graphics, Inc. (“Consolidated Graphics”), a provider of digital and commercial printing, fulfillment services, print management and proprietary Internet-based technology solutions, with operations in North America, Europe and Asia. The acquisition enhanced the Company’s ability to provide integrated communications solutions for its customers. The purchase price for Consolidated Graphics was $359.9 million in cash and 16.0 million shares of RR Donnelley common stock, or a total transaction value of $660.6 million based on the Company’s closing share price on January 30, 2014, plus the assumption of Consolidated Graphics’ debt of $118.4 million. Immediately following the acquisition, the Company repaid substantially all of the debt assumed. Consolidated Graphics’ operations are included in the Variable Print segment, with the exception of operations in the Czech Republic and Japan which are included in the International segment.

For the year ended December 31, 2014, the Company recorded $8.6 million of acquisition-related expenses associated with acquisitions completed or contemplated, within selling, general and administrative expenses in the Consolidated Statements of Operations.

The Esselte, MultiCorpora and Consolidated Graphics acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including other intangible assets, based on their estimated fair values at the applicable acquisition date. The excess of the cost of the MultiCorpora and Consolidated Graphics acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. The goodwill associated with these acquisitions is primarily attributable to the synergies expected to arise as a result of the acquisitions.

For Esselte, the fair value of the identifiable net assets acquired of approximately $110.1 million exceeded the purchase price of $100.6 million, resulting in a bargain purchase gain of $9.5 million for the year ended December 31, 2014, which was recorded in net investment and other expense. The gain on the bargain purchase was primarily attributable to the Company’s ability to utilize certain tax operating losses.

The tax deductible goodwill related to the Consolidated Graphics, Esselte and MultiCorpora acquisitions was $73.4 million.

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	$	242.0
Inventories		89.6
Prepaid expenses and other current assets		17.5
Property, plant and equipment		337.0
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		828.0
Less: debt assumed		118.4
Less: value of common stock issued		319.0
Less: gain on bargain purchase		9.5
Net cash paid	$	381.1

The fair values of other intangible assets, technology and goodwill associated with the acquisitions of Esselte, MultiCorpora and Consolidated Graphics were determined to be Level 3 under the fair value hierarchy. 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 (pre-tax)	19.0% 0.5% - 1.5%
Technology	1.1	Excess earnings	Discount rate	17.0%

The fair values of property, plant and equipment associated with the Consolidated Graphics, Esselte, and MultiCorpora acquisitions were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated using either the cost or market approach, if a secondhand market existed.

2014 Dispositions

On August 15, 2014, the Company sold the assets and liabilities of Journalism Online, LLC (“Journalism Online”), a provider of online subscription management services, for net proceeds of $10.5 million, all of which was received as of June 30, 2015, resulting in a gain of $11.2 million during the year ended December 31, 2014. As a result of a final sale price adjustment in accordance with the agreement, a $0.2 million loss was recognized during the year ended December 31, 2015, resulting in a total net gain of $11.0 million. The gain and loss were included in net investment and other expense in the Consolidated Statement of Operations. The operations of the Journalism Online business were included in the Strategic Services segment.

On August 11, 2014, the Company’s subsidiary, RR Donnelley Argentina S.A. (“RRDA”), filed for bankruptcy liquidation in bankruptcy court in Argentina. The bankruptcy petition was approved by the court shortly thereafter and a bankruptcy trustee was appointed. As a result of the bankruptcy liquidation, the Company recorded a loss of $16.4 million in net investment and other expense for the year ended December 31, 2014. Effective as of the court’s approval, the operating results of RRDA are no longer included in the Company’s consolidated results of operations. RRDA had net sales of $22.1 million and a loss before income taxes of $3.4 million and net sales of $55.8 million and a loss before income taxes of $2.8 million for the years ended December 31, 2014 and 2013, respectively. The operations of RRDA were included in the International segment.

On February 7, 2014, the Company sold the assets and liabilities of Office Tiger Global Real Estate Service Inc. (“GRES”), its commercial and residential real estate advisory services, for net proceeds of $1.8 million and a loss of $0.8 million, which was recognized in net investment and other expense in the Consolidated Statements of Operations. The operations of the GRES business were included in the International segment.

2013 Disposition

During the fourth quarter of 2013, the Company sold the assets and liabilities of R.R. Donnelley SAS (“MRM France”), its direct mail business located in Cosne sur Loire, France, for a loss of $17.9 million, which was recognized in net investment and other expense in the Consolidated Statements of Operations. The loss included cash incentive payments due to the purchaser of $18.8 million, of which $16.4 million was paid as of December 31, 2014 with the remaining balance to be paid during the first quarter of 2016. The operations of the MRM France business were included in the International segment.

For the year ended December 31, 2013, the Company recorded $5.9 million of acquisition-related expenses associated with acquisitions contemplated or completed in subsequent periods within selling, general and administrative expenses in the Consolidated Statements of Operations.

Pro forma results

The following unaudited pro forma financial information for the years ended December 31, 2015 and 2014 presents the combined results of operations of the Company and the acquisitions described above, as if the acquisitions had occurred as of January 1 of the year prior to acquisition.

The unaudited pro forma net sales are 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.

	Year ended
	December 31,
	2015		2014
Net sales	$	11,380.1	$	12,033.7
Net earnings attributable to RR Donnelley common shareholders		190.7		131.7
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.91	$	0.63
Diluted	$	0.91	$	0.63

The following table outlines unaudited pro forma financial information for the years ended December 31, 2015 and 2014:

	Year ended
	December 31,
	2015		2014
Amortization of purchased intangibles	$	82.9	$	89.6
Restructuring, impairment and other charges		93.7		129.6

Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the years ended December 31, 2015 and 2014 were as follows:

	Year ended
	December 31,
	2015			2014
Depreciation and amortization of purchased assets, pre-tax	$	3.9		$	1.4
Acquisition-related expenses, pre-tax		18.9			16.0
Restructuring, impairment and other charges, pre-tax		29.4			8.1
Inventory fair value adjustments, pre-tax		10.8			3.5
Other pro forma adjustments, pre-tax		1.2			(3.2	)
Income taxes		(16.6	)		(1.9	)

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Restructuring, Impairment and Other Charges

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

Restructuring, Impairment and Other Charges

Note 3. Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges Recognized in Results of Operations

2015	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	6.5	$	4.6	$	11.1	$	1.0	$	19.4	$	31.5
Variable Print		3.7		6.2		9.9		9.7		1.8		21.4
Strategic Services		6.7		2.1		8.8		0.9		3.4		13.1
International		24.2		3.5		27.7		24.5		—		52.2
Corporate		3.2		1.2		4.4		—		—		4.4
Total	$	44.3	$	17.6	$	61.9	$	36.1	$	24.6	$	122.6

Restructuring and Impairment Charges

For the year ended December 31, 2015, the Company recorded net restructuring charges of $44.3 million for employee termination costs for 1,939 employees, of whom 1,719 were terminated as of December 31, 2015. These charges primarily related to two facility closures in the International segment, one facility closure in the Variable Print segment, one facility closure in the Publishing and Retail Services segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $17.6 million for the year ended December 31, 2015. For the year ended December 31, 2015, the Company also recorded $6.2 million of net impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

In the third quarter of 2015, as the result of the Company’s interim goodwill impairment review, the Company recorded non-cash charges of $13.7 million and $4.3 million to recognize the impairment of goodwill in the Europe and Latin America reporting units, respectively, both of which are within the International segment. The goodwill impairment charge in the Europe reporting unit was due to the announced reorganization of certain operations which resulted in a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to the expectations as of the October 31, 2014 annual goodwill impairment test. The goodwill impairment charges were determined using Level 3 inputs, including discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions in valuing the significant tangible and intangible assets.

During the year ended December 31, 2015, the Company recorded non-cash charges of $11.9 million for the impairment of intangible assets, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships. The impairment of the customer relationship assets was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability.

Other Charges

For the year ended December 31, 2015, the Company recorded charges of $24.6 million, including integration charges of $19.1 million for payments made to certain Courier employees upon the termination of Courier’s executive severance plan immediately prior to the acquisition and $5.5 million of charges for multi-employer pension plan withdrawal obligations unrelated to facility closures. The total liabilities for the withdrawal obligations associated with the Company’s decision to withdraw from all multi-employer pension plans included in accrued liabilities and other noncurrent liabilities are $11.3 million and $82.0 million, respectively, as of December 31, 2015. See Note 11 for further discussion of multi-employer pension plans.

The Company’s withdrawal liabilities could be affected by the financial stability of other employers participating in the plans and any decisions by those employers to withdraw from the plans in the future. While it is not possible to quantify the potential impact of future events or circumstances, reductions in other employers’ participation in multi-employer pension plans, including certain plans from which the Company has previously withdrawn, could have a material impact on the Company’s previously estimated withdrawal liabilities, consolidated results of operations, financial position or cash flows.

As a result of the acquisition of Courier, the Company participates in two multi-employer pension plans, one of which the Company’s contributions are approximately 85% of the total plan contributions. Both plans are estimated to be underfunded and have a Pension Protection Act zone status of critical (“red”). Red status identifies plans that are less than 65% funded.

2014	Employee Terminations			Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	(0.2	)	$	6.4	$	6.2	$	20.8	$	23.7	$	50.7
Variable Print		17.2			9.2		26.4		10.8		7.6		44.8
Strategic Services		3.5			2.1		5.6		1.8		4.2		11.6
International		7.3			1.3		8.6		13.7		—		22.3
Corporate		2.5			1.8		4.3		—		—		4.3
Total	$	30.3		$	20.8	$	51.1	$	47.1	$	35.5	$	133.7

Restructuring and Impairment Charges

For the year ended December 31, 2014, the Company recorded net restructuring charges of $30.3 million for employee termination costs for 654 employees, substantially all of whom were terminated as of December 31, 2015. These charges primarily related to the integration of Consolidated Graphics, including the closure of seven Consolidated Graphics facilities as well as one additional facility closure within the Variable Print segment, one facility closure within the Publishing and Retail Services segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $20.8 million for the year ended December 31, 2014, including charges related to multi-employer pension plan withdrawal obligations as a result of facility closures. For the year ended December 31, 2014, the Company also recorded $14.0 million of impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

As a result of the Company’s annual goodwill impairment test, the Company recorded non-cash charges of $18.1 million to recognize the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit within the Publishing and Retail Services segment. The goodwill impairment charges resulted from a reduction in the estimated fair value of the reporting unit based on lower expectations of future revenue, profitability and cash flows as compared to expectations as of the last annual goodwill impairment test. The lower expectations for the magazines, catalogs and retail inserts reporting unit were due to accelerating volume declines and increasing price pressures resulting from declining demand, primarily in catalogs and magazines.  Revenue and income from operations in the magazines, catalogs and retail inserts reporting unit for the year ended December 31, 2014 were lower than previous expectations due to volume declines and price pressures. The goodwill impairment charges were determined using Level 3 inputs, including discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions in valuing the significant tangible and intangible assets.

During the fourth quarter of 2014, the Company recorded non-cash impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively. The impairment of the customer relationship intangible assets resulted from a decline in expected future revenue and certain customer losses in the Canada reporting unit, the loss of certain customers in the commercial and digital print reporting unit and a decline in Latin America’s expected future capital markets transactions revenue in the financial reporting unit. During the year ended December 31, 2014, the Company also recorded non-cash charges of $1.4 million related to the impairment of trade names in the commercial and digital print reporting unit within the Variable Print segment as a result of facility closures. The impairment of the customer relationship assets was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability.

Other Charges

For the year ended December 31, 2014, the Company recorded charges of $35.5 million as a result of its decision to withdraw from all multi-employer pension plans serving facilities that are currently operating. These charges for multi-employer pension plan withdrawal obligations, unrelated to facility closures, represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. The total liabilities for the withdrawal obligations associated with the Company’s decision to withdraw from all multi-employer pension plans included in accrued liabilities and other noncurrent liabilities are $14.9 million and $88.1 million, respectively, as of December 31, 2014. See Note 11 for further discussion of multi-employer pension plans.

2013	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	17.0	$	14.1	$	31.1	$	12.3	$	30.3	$	73.7
Variable Print		2.2		12.5		14.7		0.9		—		15.6
Strategic Services		2.8		2.0		4.8		6.3		8.1		19.2
International		14.3		3.6		17.9		1.0		—		18.9
Corporate		4.1		1.6		5.7		0.4		—		6.1
Total	$	40.4	$	33.8	$	74.2	$	20.9	$	38.4	$	133.5

Restructuring and Impairment Charges

For the year ended December 31, 2013, the Company recorded net restructuring charges of $40.4 million for employee termination costs for 1,382 employees, allof whom were terminated as of December 31, 2015. These charges primarily related to the closing of two manufacturing facilities within the Publishing and Retail Services segment and one manufacturing facility within the Variable Print segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $33.8 million for the year ended December 31, 2013, of which $14.7 million related to multi-employer pension plan complete or partial withdrawal charges primarily attributable to manufacturing facility closures. For the year ended December 31, 2013, the Company also recorded $17.6 million of impairment charges primarily related to buildings and machinery and equipment associated with facility closings. The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy 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.

During the fourth quarter of 2013, the Company recorded non-cash charges of $3.3 million related to the impairment of acquired customer relationship intangible assets in the financial reporting unit within the Strategic Services segment. The impairment of the acquired customer relationship intangible assets resulted from declines in compliance services volume from these relationships. The impairment of the acquired customer relationship intangible assets was determined using Level 3 inputs and estimated based on a cash flow analysis, which included management’s assumptions related to future revenues and profitability. See Note 8 for further discussion of these Level 3 inputs.

Other Charges

For the year ended December 31, 2013, the Company recorded charges of $38.4million as a result of its decision to withdraw from certain multi-employer pension plans. These charges for multi-employer pension plan withdrawal obligations, unrelated to facility closures, represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. The liabilities for these withdrawal obligations of $38.4 million were included in other noncurrent liabilities as of December 31, 2013. See Note 11 for further discussion of multi-employer pension plans.

Restructuring Reserve

The restructuring reserve as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	December 31, 2014		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2015
Employee terminations	$	13.0	$	44.3	$	(1.5	)	$	(35.6	)	$	20.2
Multi-employer pension plan withdrawal obligations		34.6		1.9		1.4			(5.0	)		32.9
Lease terminations and other		15.1		15.7		(0.1	)		(20.1	)		10.6
Total	$	62.7	$	61.9	$	(0.2	)	$	(60.7	)	$	63.7

The current portion of restructuring reserves of $29.1 million at December 31, 2015 was included in accrued liabilities, while the long-term portion of $34.6 million, primarily related to multi-employer pension plan withdrawal obligations related to facility closures and lease termination costs, was included in other noncurrent liabilities at December 31, 2015.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by December 2016.

Payments on all of the Company’s multi-employer pension plan withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to multi-employer pension plan withdrawals. See Note 11 for further discussion on multi-employer pension plans.

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 charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements.

The restructuring reserve as of December 31, 2014 and 2013, and changes during the year ended December 31, 2014, were as follows:

	December 31, 2013		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2014
Employee terminations	$	19.7	$	30.3	$	0.4		$	(37.4	)	$	13.0
Multi-employer pension plan withdrawal obligations		36.8		3.0		(0.6	)		(4.6	)		34.6
Lease terminations and other		21.1		17.8		1.3			(25.1	)		15.1
Total	$	77.6	$	51.1	$	1.1		$	(67.1	)	$	62.7

The current portion of restructuring reserves of $22.3 million at December 31, 2014 was included in accrued liabilities, while the long-term portion of $40.4 million, primarily related to multi-employer pension plan complete or partial withdrawal obligations related to facility closures and lease termination costs, was included in other noncurrent liabilities at December 31, 2014.

Payments associated with the employee terminations reflected in the above table were substantially completed by December 2015.  

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 4. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows:

	Publishing and Retail Services			Variable Print			Strategic Services			International			Total
Net book value as of January 1, 2014
Goodwill	$	688.0		$	1,638.6		$	1,005.4		$	1,275.9		$	4,607.9
Accumulated impairment losses		(669.9	)		(1,105.2	)		(243.5	)		(1,153.0	)		(3,171.6	)
Total		18.1			533.4			761.9			122.9			1,436.3
Acquisitions		—			276.2			3.4			20.5			300.1
Foreign exchange and other adjustments		—			(0.7	)		(0.2	)		(10.8	)		(11.7	)
Impairment charges		(18.1	)		—			—			—			(18.1	)
Net book value as of December 31, 2014
Goodwill		688.0			1,914.1			987.5			1,213.9			4,803.5
Accumulated impairment losses		(688.0	)		(1,105.2	)		(222.4	)		(1,081.3	)		(3,096.9	)
Total		—			808.9			765.1			132.6			1,706.6
Acquisitions		51.2			2.3			7.5			5.3			66.3
Foreign exchange and other adjustments		—			(2.4	)		(0.8	)		(8.1	)		(11.3	)
Impairment charges		—			—			—			(18.0	)		(18.0	)
Net book value as of December 31, 2015
Goodwill		739.2			1,914.0			991.5			1,123.6			4,768.3
Accumulated impairment losses		(688.0	)		(1,105.2	)		(219.7	)		(1,011.8	)		(3,024.7	)
Total	$	51.2		$	808.8		$	771.8		$	111.8		$	1,743.6

During the third quarter of 2015, the Company recorded non-cash charges of $18.0 million to reflect the impairment of goodwill in the International segment.  In the fourth quarter of 2014, the Company recorded non-cash charges of $18.1 million to reflect impairment of goodwill in the Publishing and Retail Services segment. See Note 3, Restructuring, Impairment and Other Charges, for further discussion regarding these impairment charges.

The components of other intangible assets at December 31, 2015 and 2014 were as follows:

	December 31, 2015							December 31, 2014
	Gross							Gross
	Carrying		Accumulated			Net Book		Carrying		Accumulated			Net Book
	Amount		Amortization			Value		Amount		Amortization			Value
Customer relationships	$	932.1	$	(555.3	)	$	376.8	$	865.6	$	(498.0	)	$	367.6
Patents		98.3		(98.3	)		—		98.3		(98.3	)		—
Trademarks, licenses and agreements		30.6		(29.9	)		0.7		31.5		(29.7	)		1.8
Trade names		47.5		(19.1	)		28.4		43.1		(15.6	)		27.5
Total amortizable other intangible assets		1,108.5		(702.6	)		405.9		1,038.5		(641.6	)		396.9
Indefinite-lived trade names		32.1		—			32.1		26.8		—			26.8
Total other intangible assets	$	1,140.6	$	(702.6	)	$	438.0	$	1,065.3	$	(641.6	)	$	423.7

During the year ended December 31, 2015, the Company recorded non-cash charges of $11.9 million for the impairment of intangible assets, including $9.2 million and $2.2 million related to the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively. In the fourth quarter of 2014, the Company recorded non-cash impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada reporting unit within the International segment, the commercial and digital print reporting unit within the Variable Print segment and the financial reporting unit within the Strategic Services segment, respectively.  During the year ended December 31, 2014, the Company also recorded non-cash charges of $1.4 million to reflect the impairment of trade names in the commercial and digital print reporting unit within the Variable Print segment as a result of facility closures. See Note 3, Restructuring, Impairment and Other Charges, for further discussion regarding these impairment charges.

During the years ended December 31, 2015 and 2014, the Company recorded additions to other intangible assets of $108.8 million and $205.0 million, respectively, for acquisitions during those years, the components of which were as follows:

	December 31, 2015				December 31, 2014
	Amount		Weighted Average Amortization Period		Amount		Weighted Average Amortization Period
Customer relationships	$	98.4		11.9	$	178.2		9.7
Trade names (indefinite-lived)		5.5	n/a			8.7	n/a
Trade names (amortizable)		4.6		3.0		17.8		10.0
Non-compete agreements		0.3		4.3		0.3		3.0
Total additions	$	108.8			$	205.0

Amortization expense for other intangible assets was $78.5 million, $78.1 million and $64.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2015:

	Amount
2016	$	64.6
2017		58.7
2018		52.8
2019		48.6
2020		45.0
2021 and thereafter		136.2
Total	$	405.9

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Accounts Receivable

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Accounts Receivables

Note 5. Accounts Receivable

Transactions affecting the allowance for doubtful accounts receivable during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	44.3		$	44.8		$	49.6
Provisions charged to expense		15.4			16.9			18.2
Write-offs and other		(18.2	)		(17.4	)		(23.0	)
Balance, end of year	$	41.5		$	44.3		$	44.8

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Inventories

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

Note 6. Inventories

The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2015 and 2014 were as follows:

	2015			2014
Raw materials and manufacturing supplies	$	247.2		$	261.7
Work in process		156.1			157.5
Finished goods		275.2			260.6
LIFO reserve		(86.5	)		(93.6	)
Total	$	592.0		$	586.2

The Company recognized a LIFO benefit of $7.1 million in 2015, expense of $1.6 million in 2014 and a benefit of $0.1 million in 2013.

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Note 7. Property, Plant and Equipment

The components of the Company’s property, plant and equipment at December 31, 2015 and 2014 were as follows:

	2015			2014
Land	$	113.6		$	112.1
Buildings		1,224.7			1,214.8
Machinery and equipment		6,160.3			6,142.8
		7,498.6			7,469.7
Accumulated depreciation		(6,050.5	)		(5,954.2	)
Total	$	1,448.1		$	1,515.5

During the years ended December 31, 2015, 2014 and 2013, depreciation expense was $331.5 million, $354.7 million, and $337.7 million, respectively.

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Fair Value Measurement

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurement

Note 8. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s assets and liabilities required to be adjusted to fair value on a recurring basis are pension and other postretirement benefits plan assets, foreign exchange forward contracts and interest rate swaps. See Note 11 for the fair value of the Company’s pension and other postretirement benefits plan assets as of December 31, 2015 and 2014 and Note 14 for the fair value of the Company’s foreign exchange forward contracts and interest rate swaps as of December 31, 2015 and 2014. See Note 13 for the fair value of the Company’s debt as of December 31, 2015, which is recorded at book value.

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.

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the years ended December 31, 2015, 2014 and 2013 were as follows:

	Year Ended December 31, 2015				As of December 31, 2015
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	0.3	$	—	$	—
Long-lived assets held for sale or disposal		10.0		17.9		14.4
Goodwill		18.0		—		—
Other intangible assets		11.9		—		—
Total	$	40.2	$	17.9	$	14.4

	Year Ended December 31, 2014				As of December 31, 2014
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	5.4	$	1.3	$	1.3
Long-lived assets held for sale or disposal		12.5		20.8		3.2
Goodwill		18.1		—		—
Other intangible assets		15.0		—		—
Total	$	51.0	$	22.1	$	4.5

	Year Ended December 31, 2013				As of December 31, 2013
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	4.2	$	4.2	$	4.0
Long-lived assets held for sale or disposal		14.8		20.2		18.5
Other intangible assets		3.3		—		—
Total	$	22.3	$	24.4	$	22.5

The fair values of assets held for sale that were remeasured during the years ended December 31, 2015, 2014 and 2013 were reduced by estimated costs to sell of $0.4 million, $1.2million and $1.4 million, respectively.

During the year ended December 31, 2015, goodwill for the Europe and Latin America reporting units was written down to an implied fair value of zero.  See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2015, the Company recorded impairment charges of $11.9 million, including $9.2 million and $2.2 million for the impairment of certain acquired customer relationship intangible assets in the labels reporting unit within the Variable Print segment and the Latin America reporting unit within the International segment, respectively.  After recording the impairment charges, remaining customer relationship assets in the labels and Latin America reporting units were zero and $0.9 million, respectively. See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2014, goodwill for the magazines, catalogs and retail inserts reporting unit was written down to an implied fair value of zero. See Note 3 for further discussion regarding this impairment charge.

During the year ended December 31, 2014, the Company recorded impairment charges of $7.8 million, $4.1 million and $1.7 million related to the impairment of acquired customer relationship intangible assets in the Canada, commercial and digital print and  financial reporting units, respectively. After recording the impairment charges, remaining customer relationship assets in the Canada, commercial and digital print and financial reporting units were $0.2 million, $181.8 million and $84.0 million, respectively. During the year ended December 31, 2014, $1.4 million of acquired tradenames related to the commercial and digital print reporting unit were written down to an estimated fair value of zero due to facility closures. After recording the impairment charges, remaining tradename intangible assets in the commercial and digital reporting unit were $14.3 million as of December 31, 2014.  See Note 3 for further discussion regarding these impairment charges.

During the year ended December 31, 2013, certain acquired customer relationship assets related to the financial reporting unit were written down to an estimated fair value of zero. After recording the impairment charges, remaining customer relationship intangible assets in the financial reporting unit were $101.2 million as of December 31, 2013. See Note 3 for further discussion regarding these impairment charges.

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.

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 following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the years ended December 31, 2015, 2014 and 2013:

	Fair Value		Valuation Technique	Unobservable Input	Range
2015
Customer relationships	$	—	Excess earnings	Attrition rate		2.7%
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%

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Accrued Liabilities

12 Months Ended

Dec. 31, 2015

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 9. Accrued Liabilities

The components of the Company’s accrued liabilities at December 31, 2015 and 2014 were as follows:

	2015		2014
Employee-related liabilities	$	286.2	$	337.3
Deferred revenue		146.0		145.4
Restructuring liabilities		29.1		22.3
Other		319.1		362.3
Total accrued liabilities	$	780.4	$	867.3

Employee-related liabilities consist primarily of payroll, sales commission, incentive compensation, employee benefit accruals and workers’ compensation. Incentive compensation accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals, other customer-related liabilities, interest expense accruals and income and other tax liabilities.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10. Commitments and Contingencies

As of December 31, 2015, the Company had commitments of approximately $46.8 million for the purchase of property, plant and equipment related to incomplete projects. In addition, as of December 31, 2015, the Company had commitments of $20.2 million for severance payments related to employee restructuring activities. The Company also has contractual commitments of approximately $111.3 million for outsourced services, including technology, professional, maintenance and other services. The Company has a variety of contracts with suppliers for the purchase of paper, ink and other commodities for delivery in future years at prevailing market prices. In addition, the Company has natural gas purchase commitments that are at fixed prices. As of December 31, 2015, the Company was committed to purchase $7.3 million of natural gas under these contracts.

Future minimum rental commitments under operating leases are as follows:

Year Ended December 31	Amount
2016	$	131.3
2017		96.4
2018		64.1
2019		46.0
2020		34.6
2021 and thereafter		86.6
	$	459.0

The Company has operating lease commitments, including those for vacated facilities, totaling $459.0 million extending through various periods to 2027. Future rental commitments for leases have not been reduced by minimum non-cancelable sublease rentals aggregating approximately $33.9 million. The Company remains secondarily liable under these leases in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreements.

Rent expense for facilities in use and equipment was $172.2 million, $173.2 million and $149.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Rent expense for vacated facilities was recognized as restructuring, impairment and other charges, see Note 3 for further details.

Litigation

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 generally not discounted. The Company has been designated as a potentially responsible party or has received claims in twelve active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate ten other previously and 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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Retirement Plans

12 Months Ended

Dec. 31, 2015

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

Note 11. Retirement Plans

The Company sponsors various defined benefit retirement income pension plans in the U.S., U.K., Canada and certain other international locations, including both funded and unfunded arrangements. The Company’s primary defined benefit plans are frozen. No new employees will be permitted to enter the Company’s frozen plans and participants will earn no additional benefits. Benefits are generally based upon years of service and compensation. These defined benefit retirement income plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all funded plans using actuarial cost methods and assumptions acceptable under government regulations.

As of December 31, 2015, the Company changed the method used to estimate the interest cost components of net pension and other postretirement benefits plan expense for its defined benefit pension and other postretirement benefit plans. Historically, the interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. The Company has elected to use a full yield curve approach in the estimation of these interest components of net pension and other postretirement benefits plan expense by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest costs. This change does not affect the measurement and calculation of the Company’s total benefit obligations. The Company has accounted for this change as a change in estimate and accordingly, will account for it prospectively starting in the first quarter of 2016.

In 2014 the Company communicated to certain former employees the option to receive a lump-sum pension payment or annuity computed in accordance with statutory requirements, with payments beginning in the fourth quarter of 2014. Payments to eligible participants who elected to receive a lump-sum pension payment or annuity were funded from existing pension plan assets and constituted a complete settlement of the Company’s pension liabilities with respect to these participants. The Company’s pension assets and liabilities were remeasured as of the payout dates. The discount rates and actuarial assumptions used to calculate the payouts were determined in accordance with federal regulations. As of the remeasurement dates, the reductions in the reported pension obligations for these participants was $404.0 million, compared to payout amounts of approximately $317.7 million. The Company recorded non-cash settlement charges of $95.7 million included in selling, general and administrative expenses in the fourth quarter of 2014 in connection with the settlement payments. These charges resulted from the recognition in earnings of a portion of the losses recorded in accumulated other comprehensive loss based on the proportion of the obligation settled.

During the year ended December 31, 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables which were used in the calculation of the Company’s U.S pension obligations. The Company also adopted updated mortality tables for the Canadian pension plans. The new mortality tables increased the expected life of plan participants, extending the length of time that payments may be required and increasing the plans’ total expected benefit payments. The updated mortality assumptions increased the benefit obligations for the U.S and Canadian pension plans by approximately $310.0 million as of December 31, 2014.

The Company made contributions of $15.4 million to its pension plans and $10.2 million to its other postretirement benefits plans during the year ended December 31, 2015. The Company expects to make cash contributions of approximately $25.0 million to $30.0 million to its pension and other postretirement benefits plans in 2016.

In addition to the pension plans, the Company sponsors a 401(k) savings plan, which is a defined contribution retirement income plan.

Former employees are entitled to certain healthcare and life insurance benefits provided they have met certain eligibility requirements. Generally, the Company’s benefits-eligible U.S. employees become eligible for these retiree healthcare benefits if they meet all of the following requirements at the time of termination: (a) have attained at least 55 or more points (full years of service and age combined), (b) are at least fifty years of age, (c) have at least two years of continuous, regular, full-time, benefits-eligible service and (d) have completed at least two or more years of continuous service with a participating employer, which ends on their termination date. Different requirements need to be met in order to receive subsidized medical and life insurance coverage. Certain of the plan expenses are paid through a tax-exempt trust. Most of the assets of the trust are invested in trust-owned life insurance policies covering certain current and former employees of the Company. The underlying assets of the policies are invested primarily in marketable equity, corporate fixed income and government securities.

During the fourth quarter of 2013, the Company announced the decision to reduce life insurance benefits under the Company’s other postretirement benefits plans for certain active employees and retirees effective December 31, 2013. The remeasurement of the other postretirement benefits plans’ assets and obligations due to the plan amendment resulted in a $30.1 million reduction in the accumulated other postretirement benefits obligation as of December 31, 2013, which was recorded in accumulated other comprehensive loss in the Consolidated Balance Sheets.

The Company operates a prescription drug program for certain Medicare-eligible retirees under a group-based Company sponsored Medicare Part D program, or Employer Group Waiver Program (“EGWP”). The EGWP subsidies provided to or for the benefit of this program are used to reduce the Company’s net retiree medical and prescription drug costs on a group by group basis until such net costs of the Company for such group are eliminated, and any EGWP subsidies received in excess of the amount necessary to offset such net costs are used to reduce the included group of retirees’ premiums.

The Company also maintains several pension and other postretirement benefits plans in certain international locations. The expected returns on plan assets and discount rates for these plans are determined based on each plan’s investment approach, local interest rates and plan participant profiles.

The pension and other postretirement benefits plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Prior to the plan freezes, actuarial gains and losses were amortized using the corridor method over the average remaining service life of active plan participants. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of active plan participants.

The components of the net periodic benefit (income) expense and total (income) expense were as follows:

	Pension Benefits									Other Postretirement Benefits
	2015			2014			2013			2015			2014			2013
Service cost	$	1.9		$	2.2		$	2.2		$	4.7		$	4.6		$	7.3
Interest cost		178.2			194.5			178.2			16.0			16.8			16.2
Expected return on plan assets		(246.0	)		(259.0	)		(241.9	)		(13.1	)		(13.9	)		(11.8	)
Amortization of prior service credit		—			—			—			(26.9	)		(25.8	)		(19.7	)
Amortization of actuarial loss		40.5			31.9			50.5			—			—			—
Settlements		0.2			95.7			0.7			—			—			—
Net periodic benefit (income) expense	$	(25.2	)	$	65.3		$	(10.3	)	$	(19.3	)	$	(18.3	)	$	(8.0	)
Weighted average assumption used to calculate net periodic benefit expense:
Discount rate		4.1	%		5.0	%		4.2	%		3.9	%		4.5	%		3.9	%
Rate of compensation increase		0.2	%		0.2	%		0.3	%	n/a			n/a			n/a
Expected return on plan assets		7.3	%		7.6	%		7.9	%		7.3	%		7.3	%		7.3	%

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Benefit obligation at beginning of year	$	4,452.2		$	3,952.7		$	424.6		$	382.3
Service cost		1.9			2.2			4.7			4.6
Interest cost		178.2			194.5			16.0			16.8
Plan participants' contributions		—			0.5			10.7			13.8
Medicare reimbursements		—			—			5.7			4.2
Actuarial (gain) loss		(284.9	)		652.3			(46.3	)		43.1
Plan amendments and other		—			—			(0.1	)		(7.4	)
Curtailments and settlements		—			(317.7	)		—			—
Foreign currency translation		(48.6	)		(35.3	)		(8.0	)		(4.2	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Divestitures		(0.4	)		—			—			—
Acquisitions		3.1			176.4			0.4			6.0
Benefit obligation at end of year	$	4,105.8		$	4,452.2		$	375.1		$	424.6
Fair value of plan assets at beginning of year	$	3,841.8		$	3,707.3		$	212.6		$	206.8
Actual return on assets		(31.3	)		455.4			(1.1	)		11.5
Settlements		—			(317.7	)		—			—
Employer contributions		15.4			30.9			10.2			11.0
Medicare reimbursements		—			—			5.7			4.2
Plan participants' contributions		—			0.5			10.7			13.8
Acquisitions		2.0			170.2			—			—
Foreign currency translation		(37.1	)		(31.4	)		—			(0.1	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Fair value of plan assets at end of year	$	3,595.1		$	3,841.8		$	205.5		$	212.6
Funded status at end of year	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

The accumulated benefit obligation for all defined benefit pension plans was $4,088.8 million and $4,428.5 million at December 31, 2015 and 2014, respectively.

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Prepaid pension cost (included in other noncurrent assets)	$	15.2		$	14.4		$	—		$	—
Accrued benefit cost (included in accrued liabilities)		(11.5	)		(8.7	)		(0.8	)		(1.2	)
Pension liabilities		(514.4	)		(616.1	)		—			—
Other postretirement benefits plan liabilities		—			—			(168.8	)		(210.8	)
Net liabilities recognized in the Consolidated Balance Sheets	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015		2014
Accumulated other comprehensive (loss) income
Net actuarial (loss) gain	$	(1,229.9	)	$	(1,284.8	)	$	24.1	$	(8.0	)
Net transition obligation		(0.1	)		(0.1	)		—		—
Net prior service credit		—			—			31.5		58.3
Total	$	(1,230.0	)	$	(1,284.9	)	$	55.6	$	50.3

The pre-tax amounts recognized in other comprehensive income (loss) in 2015 as components of net periodic benefit costs were as follows:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	40.5	$	—
Net prior service credit		—		(26.9	)
Amounts arising during the period:
Net actuarial loss		7.9		32.0
Divestiture		3.8		—
Net prior service credit		—		0.1
Settlements		0.2		—
Foreign currency loss		2.5		0.1
Total	$	54.9	$	5.3

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2016 are shown below:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	31.3	$	—
Net prior service credit		—		(16.0	)
Total	$	31.3	$	(16.0	)

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Discount rate		4.5	%		4.1	%		4.2	%		3.9	%
Health care cost trend:
Current
Pre-Age 65		—			—			6.1	%		7.9	%
Post-Age 65		—			—			6.1	%		7.9	%
Ultimate		—			—			4.9	%		4.9	%

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Projected benefit obligation	$	3,703.9	$	4,251.0
Fair value of plan assets		3,178.1		3,626.3

The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Accumulated benefit obligation	$	3,686.0	$	4,225.5
Fair value of plan assets		3,175.9		3,622.9

The current health care cost trend rate gradually declines through 2019 to the ultimate trend rate and remains level thereafter. A one-percentage point change in assumed health care cost trend rates would have the following effects:

	1.0% Increase		1.0% Decrease
Other postretirement benefits obligation	$	6.3	$	(5.1	)
Total other postretirement benefits service and interest cost components		0.6		(0.6	)

The Company determines its assumption for the discount rate to be used for purposes of computing annual service and interest costs based on an index of high-quality corporate bond yields and matched-funding yield curve analysis as of the measurement date.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 included a prescription drug benefit under Medicare Part D, as well as a federal subsidy that began in 2006, to sponsors of retiree health care plans that provide a benefit that is at least actuarially equivalent, as defined in the Act, to Medicare Part D. Two of the Company’s retiree health care plans were at least actuarially equivalent to Medicare Part D and were eligible for the federal subsidy. During the years ended December 31, 2015 and 2014, Medicare Part D subsidies received by the Company were negligible.

During the year ended December 31, 2015, the Company received approximately $5.7 million in EGWP subsidies.

Benefit payments are expected to be paid as follows:

	Pension Benefits		Other Postretirement Benefits-Gross		Estimated Subsidy Reimbursements
2016	$	214.8	$	28.0	$	2.2
2017		217.0		28.8		2.4
2018		221.6		29.7		2.6
2019		227.7		29.9		2.8
2020		234.4		30.0		3.0
2021-2025		1,231.3		146.4		17.1

Plan Assets

The Company’s U.S. pension plans are frozen and the Company has transitioned to a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to further reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. Over time, the target asset allocation percentage for the pension plan is expected to decrease for equity and other “return seeking” investments and increase for fixed income and other “hedging” investments. The assumed long-term rate of return for plan assets, which is determined annually, is likely to decrease as the asset allocation shifts over time. The expected long-term rate of return for plan assets is based upon many factors including asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The target asset allocation percentage as of December 31, 2015, for the primary U.S. pension plan was approximately 60.0% for return seeking investments and approximately 40.0% for hedging investments.

The Company segregated its plan assets by the following major categories and levels for determining their fair value as of December 31, 2015 and 2014:

Cash and cash equivalents— Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. As such, these assets were classified as Level 2.

Equity— The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated net asset value per share (“NAV”), but are not quoted on active markets. As such, these assets were classified as Level 2. Additionally, this category includes underlying securities in trust owned life insurance policies which are invested in certain equity securities. These investments are not quoted on active markets; therefore, they are classified as Level 2.

Fixed income— Fixed income securities are typically priced based on a valuation model rather than a last trade basis and are not exchange-traded. These valuation models involve utilizing dealer quotes, analyzing market information, estimating prepayment speeds and evaluating underlying collateral. Accordingly, the Company classified these fixed income securities as Level 2. The Company also invests in certain fixed income funds that were priced on active markets and were classified as Level 1. Additionally, this category includes underlying securities in trust owned life insurance policies which are invested in certain fixed income securities. These investments are not quoted on active markets; therefore, they are classified as Level 2.

Derivatives and other— This category includes assets and liabilities that are futures or swaps traded on a primary exchange and are priced by multiple providers. Accordingly, the Company classified these assets and liabilities as Level 1. This category also includes various other assets in which carrying value approximates fair value. Additionally, this category includes investments in commodity and structured credit funds that are not quoted on active markets; therefore, they are classified as Level 2.

Real estate—The fair market value of real estate investment trusts is based on observable inputs for similar assets in active markets, for instance, appraisals and market comparables. Accordingly, the real estate investments were categorized as Level 2.

Private equity— Includes the Company’s interest in various private equity funds that are valued by the investment manager on a periodic basis with models that use market, income and cost valuation methods. The valuation inputs are not highly observable, and these interests are not actively traded on an open market. Accordingly, private equity was categorized as Level 3.

For Level 2 and Level 3 plan assets, management reviews significant investments on a quarterly basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

The fair values of the Company’s pension plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015								December 31, 2014
Asset Category	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	136.2	$	105.5	$	30.7	$	—	$	66.4	$	44.1	$	22.3	$	—
Equity		1,534.0		904.3		629.7		—		1,751.7		997.5		754.2		—
Fixed income		1,713.9		36.6		1,677.3		—		1,830.6		43.0		1,787.6		—
Derivatives and other		19.4		1.4		18.0		—		12.8		0.8		12.0		—
Real estate		146.5		—		146.5		—		133.0		—		133.0		—
Private equity		45.1		—		—		45.1		47.3		—		—		47.3
Total	$	3,595.1	$	1,047.8	$	2,502.2	$	45.1	$	3,841.8	$	1,085.4	$	2,709.1	$	47.3

The fair values of the Company’s other postretirement benefits plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015						December 31, 2014
Asset Category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	5.4	$	—	$	5.4	$	0.8	$	—	$	0.8
Equity		139.5		—		139.5		150.8		—		150.8
Fixed income		53.8		—		53.8		46.6		—		46.6
Other		6.8		1.2		5.6		14.4		1.0		13.4
Total	$	205.5	$	1.2	$	204.3	$	212.6	$	1.0	$	211.6

The following table provides a summary of changes in the fair value of the Company’s Level 3 assets:

	Private Equity
Balance at January 1, 2014	$	43.4
Unrealized gains - net		13.6
Purchases, sales and settlements		(9.7	)
Balance at December 31, 2014	$	47.3
Unrealized gains - net		11.9
Purchases, sales and settlements		(14.1	)
Balance at December 31, 2015	$	45.1

Employee 401(k) Savings Plan — For the benefit of most of its U.S. employees, the Company maintains a defined contribution retirement savings plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code. Under this plan, employees may contribute a percentage of eligible compensation on both a before-tax and after-tax basis. The Company may provide a 401(k) discretionary match to participants, but did not in 2015, 2014 or 2013.

Multi-Employer Pension Plans — Multi-employer plans receive contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan. The risk and level of uncertainty related to participating in these multi-employer pension plans differs significantly from the risk associated with the Company-sponsored defined benefit plans. For example, investment decisions are made by parties unrelated to the Company and the financial stability of other employers participating in a plan may affect the Company’s obligations under the plan.

During the year ended December 31, 2015, the Company recorded charges of $5.5 million for multi-employer pension plans withdrawal obligations unrelated to facility closures. These charges were recorded as restructuring, impairment and other charges and represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. As a result of the acquisition of Courier, the Company participates in two multi-employer pension plans, one of which the Company’s contributions are approximately 85% of the total plan contributions. Both plans are estimated to be underfunded and have a red zone status under the Pension Protection Act. For the year ended December 31, 2014, the Company recorded restructuring, impairment and other charges of $38.5 million associated with its estimated liability for withdrawing from four defined benefit multi-employer pension plans.  Of these charges, $35.5 million were due to the Company’s decision to withdraw from the four defined benefit multi-employer pension plans and $3.0 million were primarily related to facility closures. For the year ended December 31, 2013, the Company recorded restructuring, impairment and other charges of $53.1million related to complete or partial withdrawal from certain multi-employer pension plans. Of these charges, $38.4million were due to the Company’s decision to withdraw from certain multi-employer pension plans and $14.7 million were primarily related to facility closures. See Note 3 for further details of charges related to complete or partial multi-employer pension plan withdrawal liabilities recognized in the Consolidated Statements of Operations.

During the years ended December 31, 2015, 2014 and 2013, the Company made regular contributions of $0.2 million, $0.3 million and $1.3 million, respectively, to these multi-employer pension plans and other plans from which the Company has completely withdrawn as of December 31, 2015.

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 12. Income Taxes

Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2015, 2014 and 2013:

	2015		2014		2013
U.S.	$	230.6	$	8.5	$	66.7
Foreign		37.2		138.6		142.3
Total	$	267.8	$	147.1	$	209.0

The components of income tax expense (benefit) from operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Federal:
Current	$	112.7		$	50.1		$	(15.1	)
Deferred		(34.9	)		(64.3	)		(23.9	)
State:
Current		15.8			13.9			(4.8	)
Deferred		(7.5	)		(3.8	)		(2.6	)
Foreign:
Current		37.0			49.3			51.8
Deferred		6.3			(18.9	)		(14.6	)
Total	$	129.4		$	26.3		$	(9.2	)

The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate:

	2015			2014			2013
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Change in valuation allowances		6.0			0.9			3.1
Venezuelan devaluation and sale		4.9			1.3			—
State and local income taxes, net of U.S. federal income tax benefit		3.6			3.1			2.4
Impairment charges		2.3			4.3			—
Acquisition-related expenses		1.6			0.9			0.7
Foreign tax		0.8			1.7			4.0
Adjustment of uncertain tax positions and interest		0.5			(1.8	)		(6.2	)
Reorganization		—			(10.1	)		(32.8	)
Domestic manufacturing deduction		(3.8	)		(3.0	)		(0.1	)
Foreign tax rate differential		(6.9	)		(13.4	)		(11.3	)
Other		4.3			(1.0	)		0.8
Effective income tax rate		48.3	%		17.9	%		(4.4	%)

Included in 2015 is tax expense of $6.0 million related to the receipt of an unfavorable court decision related to payment of prior year taxes in the International segment.

Included in 2014 is a $15.2 million tax benefit related to the decline in value of an entity within the Strategic Services segment.

Included in 2013 is a $58.5 million income tax benefit related to the decline in value and reorganization of certain entities within the Publishing and Retail Services segment and a benefit of $7.2 million for the recognition of previously unrecognized tax benefits related to the expected resolution of certain federal matters.

Deferred income taxes

The significant deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows:

	2015			2014
Deferred tax assets:
Pension and other postretirement benefits plan liabilities	$	293.7		$	349.1
Net operating losses and other tax carryforwards		293.4			341.6
Accrued liabilities		166.0			164.3
Foreign depreciation		36.7			38.7
Other		41.0			34.6
Total deferred tax assets		830.8			928.3
Valuation allowances		(233.5	)		(257.8	)
Net deferred tax assets	$	597.3		$	670.5
Deferred tax liabilities:
Accelerated depreciation	$	(203.4	)	$	(204.8	)
Other intangible assets		(163.4	)		(143.2	)
Inventories		(24.0	)		(24.4	)
Other		(35.8	)		(34.5	)
Total deferred tax liabilities		(426.6	)		(406.9	)
Net deferred tax assets	$	170.7		$	263.6

In the fourth quarter of 2015, the Company adopted Accounting Standards Update No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”), which requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. The Company adopted the standard prospectively. Therefore, deferred tax balances above are classified as noncurrent in the Consolidated Balance Sheet as of December 31, 2015, and deferred tax amounts are classified as current or noncurrent in accordance with the asset or liability to which they relate in the Consolidated Balance Sheet as of December 31, 2014.

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	257.8		$	268.2		$	273.6
Current year expense-net		16.1			1.3			6.4
Write-offs		(20.3	)		(2.8	)		(8.3	)
Foreign exchange and other		(20.1	)		(8.9	)		(3.5	)
Balance, end of year	$	233.5		$	257.8		$	268.2

As of December 31, 2015, the Company had domestic and foreign net operating loss and other tax carryforwards of approximately $88.2 million and $205.2 million ($98.4 million and $243.2 million, respectively, at December 31, 2014), of which $127.0 million expires between 2016 and 2025. Limitations on the utilization of these tax assets may apply. The Company has provided valuation allowances to reduce the carrying value of certain deferred tax assets, as management has concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized.

Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company has recognized deferred tax liabilities of $4.3 million and $2.6 million as of December 31, 2015 and December 31, 2014, respectively, related to local taxes on certain foreign earnings which are not considered to be permanently reinvested. Undistributed earnings of foreign subsidiaries that are considered indefinitely reinvested outside of the U.S. were approximately $1.6 billion as of December 31, 2015. Upon repatriation of these earnings to the U.S. in the form of dividends or otherwise, the Company may be subject to U.S. income taxes and foreign taxes. The tax cost would depend on income tax laws and circumstances at the time of distribution.

Cash payments for income taxes were $134.0 million, $125.5 million and $99.0 million in 2015, 2014 and 2013, respectively. Cash refunds for income taxes were $19.9 million, $13.9 million and $12.1 million in 2015, 2014 and 2013, respectively.

The Company’s income taxes payable for federal and state purposes has been reduced by the tax benefits associated with the exercise of employee stock options and the vesting of restricted stock units. A component of the income tax benefit, calculated as the tax effect of the difference between the fair market value at the time stock options are exercised or restricted stock units vest and the grant date fair market value, directly increases or reduces RR Donnelley shareholders’ equity. For the years ended December 31, 2015, 2014 and 2013, the tax expense recognized as a reduction of RR Donnelley’s shareholders’ equity was $3.2 million, $2.9 million and $0.9 million, respectively.

See Note 16 for details of the income tax expense or benefit allocated to each component of other comprehensive income.

Uncertain tax positions

Changes in the Company’s unrecognized tax benefits at December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance at beginning of year	$	58.5		$	33.8		$	47.9
Acquisitions		—			30.9			—
Additions for tax positions of the current year		1.8			1.9			2.1
Additions for tax positions of prior years		4.6			0.4			3.7
Reductions for tax positions of prior years		(5.3	)		(1.4	)		(16.2	)
Settlements during the year		(0.3	)		(2.9	)		(0.7	)
Lapses of applicable statutes of limitations		(3.0	)		(4.2	)		(3.0	)
Balance at end of year	$	56.3		$	58.5		$	33.8

As of December 31, 2015, 2014 and 2013, the Company had $56.3 million, $58.5 million and $33.8 million, respectively, of unrecognized tax benefits. Unrecognized tax benefits of $37.7 million as of December 31, 2015, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net earnings. This potential impact on net earnings reflects the reduction of these unrecognized tax benefits, net of certain deferred tax assets and the federal tax benefit of state income tax items.

As of December 31, 2015, it is reasonably possible that the total amount of unrecognized tax benefits will decrease within twelve months by as much as $16.5 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state and international tax positions.

The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. The total interest expense, net of tax benefits, related to tax uncertainties recognized in the Consolidated Statements of Operations was expense of $1.1 million and $0.1 million for the years ended December 31, 2015 and 2014, respectively, and a benefit of $1.8 million for the year ended December 31, 2013 due to the reversal of interest accrued on previously unrecognized tax benefits that were recognized during the respective year. There were no benefits from the reversal of accrued penalties for the year ended December 31, 2015. Benefits of $0.1 million and $2.6 million were recognized for the years ended December 31, 2014 and 2013, respectively, from the reversal of accrued penalties. Accrued interest of $7.0 million and $5.6 million related to income tax uncertainties were reported as a component of other noncurrent liabilities in the Consolidated Balance Sheets at December 31, 2015 and 2014, respectively. There were no accrued penalties related to income tax uncertainties for the years ended December 31, 2015 and 2014.

The Company has tax years from 2010 that remain open and subject to examination by the IRS, certain state taxing authorities or certain foreign tax jurisdictions.

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Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

Note 13. Debt

The Company’s debt at December 31, 2015 and 2014 consisted of the following:

	2015			2014
5.50% senior notes due May 15, 2015	$	—		$	200.0
8.60% senior notes due August 15, 2016		219.6			219.1
6.125% senior notes due January 15, 2017		251.2			251.0
7.25% senior notes due May 15, 2018		250.0			250.0
11.25% senior notes due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		238.9			238.9
7.625% senior notes due June 15, 2020		350.0			350.0
7.875% senior notes due March 15, 2021		448.5			448.3
8.875% debentures due April 15, 2021		80.9			80.9
7.00% senior notes due February 15, 2022		400.0			400.0
6.50% senior notes due November 15, 2023		350.0			350.0
6.00% senior notes due April 1, 2024		400.0			400.0
6.625% debentures due April 15, 2029		199.5			199.5
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		18.7			3.6
Unamortized debt issuance costs		(25.6	)		(30.5	)
Total debt		3,422.9			3,602.0
Less: current portion		(234.6	)		(203.4	)
Long-term debt	$	3,188.3		$	3,398.6

(a) As of December 31, 2015 and 2014, the interest rate on the 11.25% senior notes due February 1, 2019 was 12.75% as a result of downgrades in the ratings of the notes by the rating agencies. As a result of a ratings downgrade on February 2, 2016, the interest rate increased from 12.75% to 13.0% in February 2016.

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

________________________

The fair values of the senior notes and debentures, which were determined using the market approach based upon 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 $39.7 million and greater than its book value by approximately $259.5 million at December 31, 2015 and 2014, respectively.

In the fourth quarter of 2015, the Company adopted Accounting Standards Update No. 2015-03 “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt and Accounting Standards Update No. 2015-15 “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The adoption of ASU 2015-03 and ASU 2015-15 resulted in the reclassification of $25.6 million and $30.5 million of unamortized debt issuance costs from "Other noncurrent assets" to "Long-term debt" as of December 31, 2015 and 2014, respectively. There is $13.2 million and $16.3 million of unamortized debt issuance costs related to the Company’s revolving credit facility that remain classified as an asset as of December 31, 2015 and 2014, respectively.    

Effective September 9, 2014, the aggregate revolving commitments of the Lenders under the Company’s senior secured revolving credit facility (the “Credit Agreement”) were increased from $1.15 billion to $1.5 billion and the expiration date of the Credit Agreement was extended from October 15, 2017 to September 9, 2019.

The Credit Agreement is subject to a number of covenants, including a minimum Interest Coverage Ratio and a maximum Leverage Ratio, as defined and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The Credit Agreement generally allows annual dividend payments of up to $225.0 million in aggregate, though additional dividends may be allowed subject to certain conditions.

The weighted average interest rate on borrowings under the Company’s $1.5 billion Credit Agreement was 2.0% during the years ended December 31, 2015 and 2014.

Cash on hand and borrowings under the Credit Agreement were used to pay the $200.0 million 5.50% senior notes that matured on May 15, 2015.

On April 1, 2014, cash on hand and borrowings under the Credit Agreement were used to pay the $258.2 million 4.95% senior notes that matured on April 1, 2014.

On March 20, 2014, the Company issued $400.0 million of 6.00% senior notes due April 1, 2024. Interest on the notes is payable semi-annually on April 1 and October 1, and commenced on October 1, 2014. The net proceeds from the offering along with borrowings under the Credit Agreement were used to repurchase $211.1 million of the 8.25% senior notes due March 15, 2019, $100.0 million of the 7.25% senior notes due May 15, 2018, and $50.0 million of the 7.625% senior notes due June 15, 2020. The repurchases resulted in a pre-tax loss on debt extinguishment of $77.1 million for the year ended December 31, 2014 related to the premiums paid, unamortized debt issuance costs, elimination of the $2.8 million fair value adjustment on the 8.25% senior notes and other expenses.

As of December 31, 2015, the Company had $91.3 million in outstanding letters of credit, of which $55.6 million were issued under the Credit Agreement. The letters of credit issued under the Credit Agreement did not reduce availability under the Credit Agreement at December 31, 2015, as the amounts issued were less than the reduction in availability from the Leverage Ratio covenant. As of December 31, 2015, the Company also had $167.6 million in other uncommitted credit facilities, primarily outside the U.S., (the “Other Facilities”). As of December 31, 2015, bank acceptance drafts, letters of credit and guarantees of $81.7 million were issued, and reduced availability, under the Company’s Other Facilities. As of December 31, 2015 and 2014, total borrowings under the Credit Agreement and the Other Facilities (the “Combined Facilities”) were $11.2 million and $2.5 million, respectively.

At December 31, 2015, the future maturities of debt, including capitalized leases, were as follows:

	Amount
2016	$	234.8
2017		254.3
2018		250.2
2019		411.1
2020		350.0
2021 and thereafter		1,950.0
Total (a)	$	3,450.4

__________________

(a) Excludes unamortized debt issuance costs of $25.6 million, a discount of $2.6 million and an adjustment for fair value hedges of $0.7 million related to the Company’s 8.25% senior notes due March 15, 2019, which do not represent contractual commitments with a fixed amount or maturity date.

The following table summarizes interest expense included in the Consolidated Statements of Operations:

	2015			2014			2013
Interest incurred	$	285.2		$	294.6		$	276.0
Less: interest income		(5.3	)		(8.9	)		(11.5	)
Less: interest capitalized as property, plant and equipment		(3.9	)		(3.6	)		(3.1	)
Interest expense, net	$	276.0		$	282.1		$	261.4

Interest paid, net of interest received, was $271.3 million, $272.8million and $245.0 million in 2015, 2014 and 2013, respectively.

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Derivatives

12 Months Ended

Dec. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

Note 14. Derivatives

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in the 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 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 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 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 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 many 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 subsidiary or operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange spot and forward contracts to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the gains and losses associated with the fair values of foreign currency exchange contracts are recognized currently in the Consolidated Statements of Operations and 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 aggregate notional value of the forward contracts at December 31, 2015 and 2014 was $268.4 million and $377.2 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 at inception, were 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 were attributable to changes in the benchmark interest rate. During the year ended December 31, 2014, the Company repurchased $211.1 million of the 8.25% senior notes due March 15, 2019, and related interest rate swaps with a notional amount of $210.0 million were terminated, resulting in payments of $4.2 million for the fair value of the interest rate swaps.  As a result of the termination, the remaining notional amount of the interest rate swap agreements as of December 31, 2014 was $190.0 million. The interest rate swaps were designated as fair value hedges against changes in the value of the $238.9 million of the Company’s 8.25% senior notes due March 15, 2019.

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 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. In conjunction with the 4.95% senior notes maturity in April 2014, the remaining interest rate swap agreements matured.

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’s foreign exchange forward contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign exchange forward contracts on a net basis when possible. Foreign exchange forward contracts that can be settled on a net basis are presented net in the Consolidated Balance Sheets. Interest rate swaps are settled on a gross basis and presented gross in the Consolidated Balance Sheets.

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 December 31, 2015 and 2014, 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 Consolidated Balance Sheets in which the fair value amounts were included, were as follows:

	2015		2014
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	1.8	$	7.0
Accrued liabilities		1.5		0.5
Derivatives designated as fair value hedges
Other noncurrent assets	$	0.4	$	—
Other noncurrent liabilities		—		1.2

The pre-tax (gains) losses related to derivatives not designated as hedges recognized in the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	(28.2	)	$	(33.5	)	$	17.0

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) loss on the related interest rate swaps for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Fair Value Hedges
Interest rate swaps	Investment and other expense-net	$	(1.7	)	$	(2.1	)	$	22.5
Hedged items	Investment and other expense-net		1.3			1.3			(20.8	)
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	Investment and other expense-net	$	(0.4	)	$	(0.8	)	$	1.7

The Company also recognized a net reduction to interest expense of $2.0 million, $3.8 million and $8.7 million for the years ended December 31, 2015, 2014 and 2013, respectively, 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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Earnings per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings per Share

Note 15. Earnings per Share

Basic earnings per share is calculated by dividing net earnings attributable to RR Donnelley common shareholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are considered anti-dilutive and excluded if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of the Company’s stock price during the applicable period.

During the years ended December 31, 2015, 2014 and 2013, no shares of common stock were purchased by the Company, however, shares were withheld for tax liabilities upon the vesting of equity awards. During the year ended December 31, 2015, the Company issued 8.0 million shares of stock in conjunction with the Courier acquisition.  During the year-ended December 31, 2014, the Company issued stock in conjunction with the Consolidated Graphics and Esselte acquisitions of 16.0 million and 1.0 million shares, respectively.

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.73	$	0.59	$	1.16
Diluted	$	0.73	$	0.59	$	1.15
Dividends declared per common share	$	1.04	$	1.04	$	1.04
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	151.1	$	117.4	$	211.2
Denominator:
Weighted average number of common shares outstanding		205.6		198.5		181.9
Dilutive options and awards		1.2		1.5		1.6
Diluted weighted average number of common shares outstanding		206.8		200.0		183.5
Weighted average number of anti-dilutive share-based awards:
Stock options		2.0		2.0		3.9
Performance share units		0.7		0.7		0.6
Restricted stock units		—		—		1.5
Total		2.7		2.7		6.0

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Comprehensive Income

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Comprehensive Income

Note 16. Comprehensive Income

The components of other comprehensive (loss) income and income tax expense allocated to each component for the years ended December 31, 2015, 2014 and 2013 was as follows:

	2015								2014									2013
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense			Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(55.7	)	$	—	$	(55.7	)	$	(45.2	)	$	—		$	(45.2	)	$	(22.8	)	$	—	$	(22.8	)
Adjustment for net periodic pension and other postretirement benefits plan cost		60.2			25.4		34.8			(390.9	)		(150.0	)		(240.9	)		919.0			355.3		563.7
Change in fair value of derivatives		0.1			—		0.1			0.2			0.1			0.1			0.6			0.2		0.4
Other comprehensive (loss) income	$	4.6		$	25.4	$	(20.8	)	$	(435.9	)	$	(149.9	)	$	(286.0	)	$	896.8		$	355.5	$	541.3

The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2015, 2014 and 2013:

	Changes in the Fair Value of Derivatives			Pension and Other Postretirement Benefits Plan Cost			Translation Adjustments			Total
Balance at January 1, 2013	$	(0.6	)	$	(1,085.1	)	$	56.5		$	(1,029.2	)
Other comprehensive income (loss) before reclassifications		—			543.9			(23.0	)		520.9
Amounts reclassified from accumulated other comprehensive loss		0.4			19.8			—			20.2
Net change in accumulated other comprehensive loss		0.4			563.7			(23.0	)		541.1
Balance at December 31, 2013	$	(0.2	)	$	(521.4	)	$	33.5		$	(488.1	)
Other comprehensive loss before reclassifications		—			(303.4	)		(34.7	)		(338.1	)
Amounts reclassified from accumulated other comprehensive loss		0.1			62.5			—			62.6
Amounts reclassified from cumulative translation adjustment		—			—			(10.0	)		(10.0	)
Net change in accumulated other comprehensive loss		0.1			(240.9	)		(44.7	)		(285.5	)
Balance at December 31, 2014	$	(0.1	)	$	(762.3	)	$	(11.2	)	$	(773.6	)
Other comprehensive income (loss) before reclassifications		—			22.1			(67.6	)		(45.5	)
Amounts reclassified from accumulated other comprehensive loss		0.1			8.9			—			9.0
Amounts reclassified due to disposition of an operating entity		—			3.8			13.1			16.9
Net change in accumulated other comprehensive loss		0.1			34.8			(54.5	)		(19.6	)
Balance at December 31, 2015	$	—		$	(727.5	)	$	(65.7	)	$	(793.2	)

Reclassifications from accumulated other comprehensive loss for the year ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013			Classification in the Consolidated Statements of Operations
Amortization of pension and other postretirement benefits plan cost:
Net actuarial loss	$	40.5		$	31.9		$	50.5		(a)
Net prior service credit		(26.9	)		(25.8	)		(19.7	)	(a)
Curtailments and settlements		0.2			95.7			0.7		(a)
Reclassifications before tax		13.8			101.8			31.5
Income tax expense		4.9			39.3			11.7
Reclassifications, net of tax	$	8.9		$	62.5		$	19.8

(a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense recognized in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Operations (see Note 11).

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Stock and Incentive Programs for Employees and Directors

12 Months Ended

Dec. 31, 2015

Share Based Compensation [Abstract]

Stock and Incentive Programs for Employees and Directors

Note 17. Stock and Incentive Programs for Employees and Directors

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 Company estimates the fair value of share-based awards based on assumptions as of the grant date. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three to four years for restricted stock awards and stock options and the performance period for performance share units. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates.

Share-Based Compensation Expense

The total compensation expense related to all share-based compensation plans was $17.3 million, $17.7 million and $19.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. The income tax benefit related to share-based compensation expense was $6.7 million, $6.9 million and $7.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, $19.3 million of total unrecognized compensation expense related to share-based compensation plans is expected to be recognized over a weighted-average period of 1.8 years.

Share-Based Compensation Plans

The Company has one share-based compensation plan under which it may grant future awards, as described below, and one terminated or expired share-based compensation plan under which awards remain outstanding.

The 2012 Performance Incentive Plan (the “2012 PIP”) was approved by shareholders to provide incentives to key employees of the Company and its subsidiaries. Awards under the 2012 PIP are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock units, restricted stock awards, cash or stock bonuses and stock appreciation rights. There were 10 million shares of common stock reserved and authorized for issuance under the 2012 PIP. At December 31, 2015, there were 5.7 million shares of common stock authorized and available for grant under the 2012 PIP.

General Terms of Awards

Under various incentive plans, the Company has granted certain employees non-qualified stock options, restricted stock units, and performance share units. The Human Resources Committee of the Board of Directors has discretion to establish the terms and conditions for grants, including the number of shares, vesting and required service or other performance criteria. The maximum term of any award under the 2012 PIP and previous plans is ten years.

For all of the Company’s stock options outstanding at December 31, 2015, the exercise price of the stock option equals the fair market value of the Company’s common stock on the option grant date. Options generally vest over four years or less from the date of grant, upon retirement or upon a change in control of the Company. Options generally expire ten years from the date of grant or five years after the date of retirement, whichever is earlier.

The rights granted to the recipient of restricted stock unit awards generally accrue ratably over the restriction or vesting period, which is generally four years. The Company has also granted restricted stock unit awards which cliff vest three years from the grant date. Restricted stock unit 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, termination of the grantee’s employment under certain circumstances or a change in control of the Company. The Company records compensation expense of restricted stock unit awards based on the fair market value of the awards at the date of grant ratably over the period during which the restrictions lapse. Dividends are not paid on restricted stock units.

The Company also issues restricted stock units as share-based compensation for members of the Board of Directors. Director restricted stock units granted after January 2009 vest ratably over three years from the date of grant with the opportunity to defer any tranche of vesting restricted stock units until termination of service on the Board of Directors. Awards granted between January 2008 and January 2009 vested ratably over three years from the date of grant and were amended in May 2009 to provide the opportunity to defer any tranche of vesting restricted stock units until termination of service on the Board of Directors. For awards granted prior to January 2008, one-third of the restricted stock units vested on the third anniversary of the grant date, and the remaining two-thirds of the restricted stock units vested upon termination of the holder’s service on the Board of Directors; the holder could also elect to defer delivery of the initial one-third of the restricted stock units until termination of service on the Board of Directors. In the event of termination of a holder’s service on the Board of Directors prior to a vesting date, all restricted stock units of such holder will vest. All awards granted prior to December 31, 2007 are payable in shares of common stock or cash. In 2009, the option to have awards paid in cash was removed for awards granted in 2008 and future years. Awards that may be paid in cash are classified as liability awards due to their expected settlement in cash, and are included in accrued liabilities in the Consolidated Balance Sheets. Approximately 86,372, 86,372 and 124,599 restricted stock units classified as liability awards were outstanding at December 31, 2015, 2014 and 2013, respectively. Compensation expense for these awards is measured based upon the fair market value of the awards at the end of each reporting period. Awards payable only in shares are classified as equity awards due to their expected settlement in common stock. Compensation expense for these awards is measured based upon the fair market value of the awards at the date of grant. Dividend equivalents are accrued for shares awarded to the Board of Directors and paid in the form of cash.

The Company has granted performance share unit awards to certain executive officers and senior management. Distributions under these awards are payable at the end of their respective performance periods in common stock or cash, at the Company’s discretion. The number of share units that vest can range from zero to 150% for the 2015 awards and from zero to 100% for the 2014 and 2013 awards, depending on achievement of a targeted performance metric for a performance period of three years inclusive of the year in which the award was granted. These awards are subject to forfeiture upon termination by the Company under certain circumstances prior to vesting. The Company expenses the cost of the performance share unit awards based on the fair market value of the awards at the date of grant and the estimated achievement of the performance metric, ratably over the performance period of three years.

Stock Options

There were no options granted during the years ended December 31, 2015 and 2014.

Stock option awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2014		3,847		$	19.43		4.7	$	12.6
Exercised		(135	)		13.21
Cancelled/forfeited/expired		(5	)		13.23
Outstanding at December 31, 2015		3,707			19.66		3.6		8.4
Vested and expected to vest at December 31, 2015		3,701			19.67		3.6		8.4
Exercisable at December 31, 2015		1,455		$	9.22		4.2	$	8.0

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 December 31, 2015 and 2014, 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 December 31, 2015 and 2014. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised for the years ended December 31, 2015, 2014 and 2013 was $0.8 million, $1.1 million and $0.7 million, respectively.

Compensation expense related to stock options for the years ended December 31, 2015, 2014 and 2013 was $0.6 million, $0.9 million and $1.5 million, respectively. As of December 31, 2015, $0.1 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 0.2 years.

Cash received from the option exercises for the year ended December 31, 2015, 2014 and 2013 was $1.8 million, $1.6 million and $2.2 million, respectively. The actual tax benefit realized for the tax deduction from option exercises totaled $0.3 million, $0.4 million and $0.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Excess tax benefits on stock option exercises, shown as financing cash inflows as a component of issuance of common stock in the Consolidated Statements of Cash Flows, were $0.2 million, $0.3 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Restricted Stock Units

Nonvested restricted stock unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015 were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		2,045		$	12.54
Granted		701			17.14
Vested		(1,010	)		13.71
Forfeited		(66	)		13.55
Nonvested at December 31, 2015		1,670		$	13.72

Compensation expense related to restricted stock units was $11.6 million, $13.3 million and $15.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, there was $12.5 million of unrecognized share-based compensation expense related to approximately 1.7 million restricted stock unit awards, with a weighted-average grant date fair value of $13.70, that are expected to vest over a weighted-average period of 1.8 years. The fair value of these awards was determined based on the Company’s stock price on the grant date reduced by the present value of expected dividends through the vesting period.

Excess tax benefits on restricted stock units that vested, shown as financing cash inflows as a component of issuance of common stock in the Consolidated Statements of Cash Flows, were $2.4 million, $2.5 million and $2.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Performance Share Units

Nonvested performance share unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		804		$	11.87
Granted		418			16.73
Expired/forfeited		(5	)		16.73
Vested		(485	)		8.85
Nonvested at December 31, 2015		732		$	16.61

During the years ended December 31, 2015, 2014 and 2013, 418,000, 319,000 and 485,000 performance share unit awards, respectively, were granted to certain executive officers and senior management, payable upon the achievement of certain established performance targets. The performance periods for the shares awarded during the years ended December 31, 2015, 2014 and 2013 are January 1, 2015 through December 31, 2017, January 1, 2014 through December 31, 2016 and January 1, 2013 through December 31, 2015, 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 years ended December 31, 2015 and 2014 range from 209,000 to 627,000 and 154,500 to 319,000 shares, respectively, should certain performance targets be achieved. The maximum potential payout of 485,000 shares was achieved for awards granted during the year ended December 31, 2013. 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, permanent disability or retirement of the grantee or a change in control of the Company. If the proposed spinoff transactions are completed, the terms of the performance share unit awards may be modified. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for further details regarding the proposed spinoff transactions.

Compensation expense for the awards granted in 2015 and 2014 is currently being recognized based on 100% estimated payout of 418,000 and 319,000 shares, for each respective period. Compensation expense for awards granted during 2013 was recognized based on the achieved payout of 100%, or 485,000 shares, which are expected to be distributed during the first quarter of 2016. Compensation expense related to performance share unit awards for the years ended December 31, 2015, 2014 and 2013 was $5.1 million, $3.5 million and $2.5 million, respectively. As of December 31, 2015, there was $6.7 million of unrecognized compensation expense related to performance share unit awards, which is expected to be recognized over a weighted average period of 1.7 years.

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Preferred Stock

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Preferred Stock

Note 18. Preferred Stock

The Company has two million shares of $1.00 par value preferred stock authorized for issuance. The Board of Directors may divide the preferred stock into one or more series and fix the redemption, dividend, voting, conversion, sinking fund, liquidation and other rights. The Company has no present plans to issue any preferred stock.  

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Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Note 19. Segment Information

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. The Publishing and Retail Services segment accounted for 22.4% of the Company’s consolidated net sales in 2015.

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, office products, labels, statement printing, forms and packaging. The Variable Print segment accounted for 33.4% of the Company’s consolidated net sales in 2015.

Strategic Services

The Strategic Services segment includes the Company’s logistics services, financial print products and related services, print management offerings and digital and creative solutions and book publishing. The Strategic Services segment accounted for 23.8% of the Company’s consolidated net sales in 2015.

International

The International segment includes the Company’s non-U.S. printing operations in Asia, Europe, Latin America and Canada. This segment’s primary 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. The International segment accounted for 20.4% of the Company’s consolidated net sales in 2015.

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 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, 2015
Publishing and Retail Services	$	2,556.3	$	(34.6	)	$	2,521.7	$	77.3		$	1,334.4	$	148.3	$	35.0
Variable Print		3,817.6		(55.2	)		3,762.4		250.7			2,496.2		152.6		56.9
Strategic Services		2,849.4		(171.5	)		2,677.9		257.5			1,404.9		66.1		49.0
International		2,402.7		(107.9	)		2,294.8		71.4			1,675.3		83.5		47.8
Total operating segments		11,626.0		(369.2	)		11,256.8		656.9			6,910.8		450.5		188.7
Corporate		—		—			—		(69.5	)		368.5		3.5		18.9
Total operations	$	11,626.0	$	(369.2	)	$	11,256.8	$	587.4		$	7,279.3	$	454.0	$	207.6
Year ended December 31, 2014
Publishing and Retail Services	$	2,646.1	$	(13.8	)	$	2,632.3	$	86.1		$	1,215.7	$	145.1	$	43.5
Variable Print		3,829.7		(61.8	)		3,767.9		240.8			2,649.5		157.2		53.0
Strategic Services		2,744.8		(137.3	)		2,607.5		257.4			1,366.6		65.5		41.0
International		2,691.2		(95.5	)		2,595.7		106.7			1,865.4		98.8		68.3
Total operating segments		11,911.8		(308.4	)		11,603.4		691.0			7,097.2		466.6		205.8
Corporate		—		—			—		(175.1	)		511.6		7.4		17.8
Total operations	$	11,911.8	$	(308.4	)	$	11,603.4	$	515.9		$	7,608.8	$	474.0	$	223.6
Year ended December 31, 2013
Publishing and Retail Services	$	2,777.7	$	(2.9	)	$	2,774.8	$	109.6		$	1,369.6	$	166.0	$	57.7
Variable Print		2,650.7		(57.9	)		2,592.8		197.9			1,567.1		103.4		63.4
Strategic Services		2,587.7		(134.7	)		2,453.0		232.8			1,355.6		58.4		34.9
International		2,746.9		(87.2	)		2,659.7		147.3			2,060.0		102.5		50.8
Total operating segments		10,763.0		(282.7	)		10,480.3		687.6			6,352.3		430.3		206.8
Corporate		—		—			—		(107.9	)		852.8		5.5		9.8
Total operations	$	10,763.0	$	(282.7	)	$	10,480.3	$	579.7		$	7,205.1	$	435.8	$	216.6

Corporate assets primarily consisted of the following items at December 31, 2015, 2014 and 2013:

	2015			2014			2013
Cash and cash equivalents	$	(45.8	)	$	94.6		$	494.9
Deferred income tax assets, net of valuation allowances		169.9			152.0			39.2
Software, net		98.8			82.1			71.1
Deferred compensation plan assets and Company owned life insurance assets		92.1			86.0			79.5
Property, plant and equipment, net		61.6			61.2			61.7
LIFO reserves		(86.5	)		(93.6	)		(92.0	)

Restructuring, impairment and other charges by segment for 2015, 2014 and 2013 are described in Note 3.

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Geographic Area and Products and Services Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Geographic Area and Products and Services Information

Note 20. Geographic Area and Products and Services Information

The table below presents net sales and long-lived assets by geographic region. The amounts in this table differ from the segment data presented in Note 19 because each operating segment includes operations in multiple geographic regions based on the Company’s management reporting structure.

	U.S.		Europe		Asia		Other		Consolidated
2015
Net sales	$	8,937.7	$	905.0	$	832.3	$	581.8	$	11,256.8
Long-lived assets (a)		1,601.8		141.0		112.1		141.1		1,996.0
2014
Net sales	$	8,974.2	$	983.1	$	860.1	$	786.0	$	11,603.4
Long-lived assets (a)		1,671.1		154.0		129.0		181.6		2,135.7
2013
Net sales	$	7,866.2	$	975.2	$	841.5	$	797.4	$	10,480.3
Long-lived assets (a)		1,435.7		160.7		152.2		175.8		1,924.4

(a) Includes net property, plant and equipment, noncurrent deferred tax assets and other noncurrent assets.

_______________________________

The following table summarizes net sales by the Company’s products and services categories for the years ended December 31, 2015, 2014 and 2013:

Products and services	2015 Net Sales		2014 Net Sales		2013 Net Sales
Magazines, catalogs and retail inserts	$	1,950.5	$	2,223.5	$	2,370.0
Commercial and digital print		1,885.0		1,851.7		966.4
Books		1,237.9		1,149.4		1,202.2
Financial print		681.7		722.2		775.1
Statements		607.5		641.3		666.0
Office products		560.2		496.3		238.9
Direct mail		524.4		613.2		571.7
Labels		500.6		523.3		488.1
Packaging and related products		489.3		484.0		464.3
Forms		358.1		462.1		491.9
Global Turnkey Solutions		345.8		341.7		305.4
Directories		182.6		206.5		225.8
Total products		9,323.6		9,715.2		8,765.8
Logistics services		1,270.4		1,211.3		1,105.9
Financial print related services		309.0		292.3		230.2
Business process outsourcing		193.4		195.8		188.8
Digital and creative solutions		160.4		188.8		189.6
Total services		1,933.2		1,888.2		1,714.5
Total net sales	$	11,256.8	$	11,603.4	$	10,480.3

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Venezuela Currency Remeasurement

12 Months Ended

Dec. 31, 2015

Foreign Currency [Abstract]

Venezuela Currency Remeasurement

Note 21. Venezuela Currency Remeasurement

As described in Note 2, Acquisitions and Dispositions, on April 29, 2015 the Company sold its 50.1% interest in its Venezuelan operating entity.

Since January 1, 2010, the three-year cumulative inflation for Venezuela using the blended Consumer Price Index and National Consumer Price Index has exceeded 100%. As a result, Venezuela’s economy is considered highly inflationary and the financial statements of the Company’s Venezuelan subsidiaries were remeasured as if the functional currency were the U.S. Dollar. Prior to March 31, 2014, the financial statements were remeasured based on the official rate determined by the government of Venezuela.

During the first quarter of 2014, the Venezuelan government expanded the operation of the Supplementary System for the Administration of Foreign Currency (“SICAD 1”) currency exchange mechanism for use with certain transactions. In addition, the Venezuelan government also began operating the SICAD 2 exchange which the government indicated was available to all entities for all transactions.  The Venezuelan government indicated that the official rate of 6.3 Bolivars per U.S. Dollar would be reserved only for settlement of U.S. Dollar denominated purchases of “essential goods and services.” As of December 31, 2014, the SICAD 1 and SICAD 2 exchange rates were 12.0 and 50.0 Bolivars per U.S. Dollar, respectively. Beginning March 31, 2014, certain assets of the Company’s Venezuelan subsidiaries were remeasured at the SICAD 2 rate as the Company believed those assets would ultimately be utilized to settle U.S. Dollar denominated liabilities using SICAD 2.  Remaining net monetary assets were remeasured at the SICAD 1 rate, as the Company believed SICAD 1 would be applicable for future transactions, and dividend remittances, if any, from the Company’s Venezuelan subsidiaries.  During the three months ended June 30, 2014, certain transactions pending approval at the official rate of 6.3 Bolivars per U.S. Dollar were approved, resulting in foreign exchange gains.  As a result of the remeasurement at the SICAD 1 and SICAD 2 rates and foreign exchange gains resulting from certain transactions approved at the official rate during the year ended December 31, 2014, a net pre-tax loss, net of foreign exchange gains, of $18.4 million ($13.8 million after-tax) was recognized in net investment and other expense, of which $5.6 million was included in loss attributable to noncontrolling interests.  

In February 2015, the Venezuelan government discontinued the SICAD 2 rate and introduced a new currency exchange rate mechanism (“SIMADI”).  As of February 28, 2015, monetary assets and liabilities of the Company’s Venezuelan subsidiaries were remeasured at the SIMADI rate as the Company believed the SIMADI was the exchange rate mechanism most likely to be available to the Company’s Venezuelan subsidiaries to settle U.S. Dollar denominated transactions. As of March 31, 2015, the SIMADI rate was 193 Bolivars per U.S. Dollar.

As a result of the remeasurement at the SIMADI rate and the related impact of the devaluation, during the year ended December 31, 2015, a pre-tax loss of $30.3 million ($27.5 million after-tax) was recognized in net investment and other expense, of which $10.5 million was included in loss attributable to noncontrolling interests.

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New Accounting Pronouncements

12 Months Ended

Dec. 31, 2015

Accounting Changes And Error Corrections [Abstract]

New Accounting Pronouncements

Note 22. New Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17 which requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. The Company adopted the standard prospectively in the fourth quarter of 2015 and prior periods were not retrospectively adjusted. The adoption of ASU 2015-17 resulted in the reclassification of $38.5 million of current deferred tax assets to noncurrent on the balance sheet as of December 31, 2015. Current deferred tax assets of $41.6 million are included in “Prepaid expenses and other current assets” as of December 31, 2014.

In April 2015, the FASB issued ASU 2015-03 which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt.  ASU 2015-03 requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued ASU 2015-15 which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The Company adopted the standards in the fourth quarter of 2015. The adoption of ASU 2015-03 and ASU 2015-15 resulted in the reclassification of $25.6 million and $30.5 million of unamortized debt issuance costs from "Other noncurrent assets" to "Long-term debt" as of December 31, 2015 and 2014, respectively.  

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09 to January 1, 2018. Early adoption of ASU 2014-09 is permitted in the first quarter of 2017, however the Company plans to adopt the standard in the first quarter of 2018. The standard allows the option of either a full retrospective adoption, meaning the standard is applied to all periods presented, or a modified retrospective adoption, meaning the standard is applied only to the most current period. The Company is evaluating the impact of the provisions of ASU 2014-09 and currently anticipates applying the modified retrospective approach when adopting the standard.

The following recently issued standards are not expected to have a material impact on the Company’s Consolidated Financial Statements:

· Accounting Standards Update No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”

· Accounting Standards Update No. 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”

· Accounting Standards Update No. 2015-12 “Plan Accounting (Topics 960, 962, and 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient”

· Accounting Standards Update No. 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory”

· Accounting Standards Update No. 2015-07 “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)”

· Accounting Standards Update No. 2015-05 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”

· Accounting Standards Update No. 2015-04 “Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”

· Accounting Standards Update No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis”

· Accounting Standards Update No. 2015-01 “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”

· Accounting Standards Update No. 2014-16 “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity”

· Accounting Standards Update No. 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”

· Accounting Standards Update No. 2014-12 “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”

The following standards were effective for and adopted by the Company in 2015. The adoption of these standards did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows:

· Accounting Standards Update No. 2015-10 “Technical Corrections and Improvements: Amendments to the FASB Accounting Standards Codification”

· Accounting Standards Update No. 2015-08 “Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115”

· Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”

· Accounting Standards Update No. 2014-01 “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects”

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations —The Company helps organizations communicate more effectively by working to create, manage, produce, distribute and process content on behalf of our customers. The Company assists customers in developing and executing multichannel communication strategies that engage audiences, reduce costs, drive revenues and increase compliance. R.R. Donnelley’s innovative technologies enhance digital and print communications to deliver integrated messages across multiple media to highly targeted audiences at optimal times for clients in virtually every private and public sector. Strategically located operations provide local service and responsiveness while leveraging the economic, geographic and technological advantages of a global organization.

Use of Estimates

Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, self-insurance reserves, taxes, restructuring and other provisions and contingencies.

Foreign Operations

Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be permanently reinvested. Since January 1, 2010, the three-year cumulative inflation for Venezuela using the blended Consumer Price Index and National Consumer Price Index has exceeded 100%. As a result, Venezuela’s economy is considered highly inflationary and the financial statements of the Company’s Venezuelan entities are remeasured as if the functional currency were the U.S. Dollar. See Note 21 for further discussion.

Fair Value Measurements

Fair Value Measurements— Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its foreign exchange forward contracts, interest rate swaps, pension plan assets and other postretirement plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

Revenue Recognition

Revenue Recognition —The Company recognizes revenue for the majority of its products upon transfer of title and the passage of the risk of ownership, which is generally upon shipment to the customer. Contracts generally specify F.O.B. shipping point terms. Under agreements with certain customers, custom products may be stored by the Company for future delivery. In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides. In certain of these cases, delivery and billing schedules are outlined in the customer agreement and product revenue is recognized when manufacturing is complete, title and risk of ownership transfer to the customer, and there is a reasonable assurance as to collectability. Because the majority of products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale.  

Revenue from services is recognized as services are performed. For the Company’s logistics operations, whose operations include the delivery of printed material and other products, the Company recognizes revenue upon completion of the delivery of services. Within the Company’s financial operations, which serve the global financial services end market, the Company files highly customized materials such as regulatory S-filings and initial public offerings with the SEC on behalf of its customers, and performs XBRL and EDGAR-related services. Revenue is recognized for these services upon completion of the service performed or following final delivery of the related printed product. Within the Company’s business process outsourcing operations, the Company provides various outsourcing services. Depending on the nature of the service performed, revenue is recognized for outsourcing services either as services are rendered or upon completion of the service. Revenues related to the Company’s digital and creative solutions operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer.

The Company records deferred revenue in situations where amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met.

Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for third-party shipping and handling costs as well as certain postage costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross. In the Company’s Global Turnkey Solutions operations, contracts are evaluated using various criteria to determine if revenue for components and other materials should be recognized on a gross or net basis. In general, these revenues are recognized on a gross basis if the Company has control over selecting vendors and pricing, is the primary obligor in the arrangement, bears all credit risk and bears the risk of loss for inventory in its possession. Revenue from contracts that do not meet these criteria is recognized on a net basis. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis.

The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

By-Product Recoveries

By-product recoveries —The Company records the sale of by-products as a reduction of cost of sales.

Cash and Cash Equivalents

Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations.

Receivables

Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s consolidated net sales in 2015, 2014 or 2013. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 5 for details of activity affecting the allowance for doubtful accounts receivable.

Inventories

Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. The cost of 57.6% and 59.8% of the inventories at December 31, 2015 and 2014, respectively, has been determined using the Last-In, First-Out (LIFO) method. This method is intended to reflect the effect of inventory replacement costs within results of operations; accordingly, charges to cost of sales generally reflect recent costs of material, labor and factory overhead. The Company uses an external-index method of valuing LIFO inventories. The remaining inventories, primarily related to certain acquired and international operations, are valued using the First-In, First-Out (FIFO) or specific identification methods.

Long-Lived Assets

Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.

Property, Plant and Equipment

Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.

Goodwill

Goodwill —Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. The annual goodwill impairment test for 2013 was performed based on the Company’s previous organization structure prior to the reorganization of the Company’s reportable segments in the fourth quarter of 2013.

For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed.

For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. If the carrying value exceeds the reporting unit’s fair value, the Company performs an additional fair value measurement calculation to determine the impairment loss, which is charged to operations in the period identified. See Note 3 for further discussion.

The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s interim review for indicators of impairment as of December 31, 2015, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying value.

Amortization

Amortization —Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of five years. Amortization expense, primarily related to internally-developed software and excluding amortization expense related to other intangible assets, was $44.0 million, $41.2 million and $34.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Deferred debt issuance costs are amortized over the term of the related debt. Other intangible assets, except for those intangible assets with indefinite lives, are recognized separately from goodwill and are amortized over their estimated useful lives. Other intangible assets with indefinite lives are not amortized. See Note 4 for further discussion of other intangible assets and the related amortization expense.

Financial Instruments

Financial Instruments —The Company uses derivative financial instruments to hedge exposures to interest rate and foreign exchange fluctuations in the ordinary course of business.

All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities on the balance sheet at their respective fair values with unrealized gains and losses recorded in comprehensive income (loss), net of applicable income taxes, or in the results of operations, depending on the purpose for which the derivative is held. 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 results 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 results of operations. At 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 of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the results of operations.

The Company’s foreign exchange forward contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign exchange forward contracts on a net basis when possible. Foreign exchange forward contracts that can be settled on a net basis are presented net in the Consolidated Balance Sheets. Interest rate swaps are settled on a gross basis and presented gross in the Consolidated Balance Sheets. See Note 14 for further discussion.

Share-Based Compensation

Share-Based Compensation —The Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options, restricted stock units and performance share units. The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. See Note 17 for further discussion.

Pension and Other Postretirement Benefits Plans

Pension and Other Postretirement Benefits Plans —The Company records annual income and expense amounts relating to its pension and other postretirement benefit plans based on calculations which include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, turnover rates and healthcare cost trend rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. See Note 11 for further discussion.

Taxes on Income

Taxes on Income —Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company recognizes deferred tax liabilities related to taxes on certain foreign earnings that are not considered to be permanently reinvested. No deferred tax liabilities are recognized for foreign earnings that are considered to be permanently reinvested. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its 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 tax liabilities.

The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s financial statements. The Company adjusts such reserves upon changes in circumstances that would cause a change to the estimate of the ultimate liability, upon effective settlement or upon the expiration of the statute of limitations, in the period in which such event occurs. See Note 12 for further discussion.

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Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2015

Business Acquisition [Line Items]

Fair Values, 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, 2015, 2014 and 2013:

	Fair Value		Valuation Technique	Unobservable Input	Range
2015
Customer relationships	$	—	Excess earnings	Attrition rate		2.7%
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%

Pro Forma Financial Information

The unaudited pro forma net sales are 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.

	Year ended
	December 31,
	2015		2014
Net sales	$	11,380.1	$	12,033.7
Net earnings attributable to RR Donnelley common shareholders		190.7		131.7
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.91	$	0.63
Diluted	$	0.91	$	0.63

The following table outlines unaudited pro forma financial information for the years ended December 31, 2015 and 2014:

	Year ended
	December 31,
	2015		2014
Amortization of purchased intangibles	$	82.9	$	89.6
Restructuring, impairment and other charges		93.7		129.6

Pro Forma Adjustments Affecting Net Earnings (Loss)

Additionally, the pro forma adjustments affecting net earnings attributable to RR Donnelley common shareholders for the years ended December 31, 2015 and 2014 were as follows:

	Year ended
	December 31,
	2015			2014
Depreciation and amortization of purchased assets, pre-tax	$	3.9		$	1.4
Acquisition-related expenses, pre-tax		18.9			16.0
Restructuring, impairment and other charges, pre-tax		29.4			8.1
Inventory fair value adjustments, pre-tax		10.8			3.5
Other pro forma adjustments, pre-tax		1.2			(3.2	)
Income taxes		(16.6	)		(1.9	)

Courier Corporation

Business Acquisition [Line Items]

Schedule of Final Purchase Price Allocation for Acquisitions

Based on the valuations, the final purchase price allocation for the Courier acquisition as well as the purchase price allocation for three insignificant acquisitions was as follows:

Accounts receivable	$	36.2
Inventories		59.0
Prepaid expenses and other current assets		38.8
Property, plant and equipment		163.8
Other intangible assets		108.8
Other noncurrent assets		7.9
Goodwill		66.3
Accounts payable and accrued liabilities		(24.6	)
Other noncurrent liabilities		(10.5	)
Deferred taxes-net		(83.7	)
Total purchase price-net of cash acquired		362.0
Less: debt assumed		80.2
Less: settlement of accounts receivable for acquisition of a business		8.6
Less: value of common stock issued		155.2
Net cash paid	$	118.0

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

The fair values of other intangible assets, technology and goodwill associated with the acquisition of Courier were determined to be Level 3 under the fair value hierarchy.  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	$	98.4	Excess earnings	Discount rate Attrition rate	14.0% - 17.0% 0.0% - 7.5%
Trade names		10.1	Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	12.0% 0.3% - 1.0%
Technology	1.6		Relief-from-royalty method	Discount rate Royalty rate (pre-tax)	11.0% 15.0%
Non-compete agreement		0.3	Excess earnings	Discount rate		17.0%

Consolidated Graphics, Esselte and MultiCorpora

Business Acquisition [Line Items]

Schedule of Final Purchase Price Allocation 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	$	242.0
Inventories		89.6
Prepaid expenses and other current assets		17.5
Property, plant and equipment		337.0
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		828.0
Less: debt assumed		118.4
Less: value of common stock issued		319.0
Less: gain on bargain purchase		9.5
Net cash paid	$	381.1

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

The fair values of other intangible assets, technology and goodwill associated with the acquisitions of Esselte, MultiCorpora and Consolidated Graphics were determined to be Level 3 under the fair value hierarchy. 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 (pre-tax)	19.0% 0.5% - 1.5%
Technology	1.1	Excess earnings	Discount rate	17.0%

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Restructuring, Impairment and Other Charges (Tables)

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

Schedule of Net Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges Recognized in Results of Operations

2015	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	6.5	$	4.6	$	11.1	$	1.0	$	19.4	$	31.5
Variable Print		3.7		6.2		9.9		9.7		1.8		21.4
Strategic Services		6.7		2.1		8.8		0.9		3.4		13.1
International		24.2		3.5		27.7		24.5		—		52.2
Corporate		3.2		1.2		4.4		—		—		4.4
Total	$	44.3	$	17.6	$	61.9	$	36.1	$	24.6	$	122.6

2014	Employee Terminations			Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	(0.2	)	$	6.4	$	6.2	$	20.8	$	23.7	$	50.7
Variable Print		17.2			9.2		26.4		10.8		7.6		44.8
Strategic Services		3.5			2.1		5.6		1.8		4.2		11.6
International		7.3			1.3		8.6		13.7		—		22.3
Corporate		2.5			1.8		4.3		—		—		4.3
Total	$	30.3		$	20.8	$	51.1	$	47.1	$	35.5	$	133.7

2013	Employee Terminations		Other Restructuring Charges		Total Restructuring Charges		Impairment		Other Charges		Total
Publishing and Retail Services	$	17.0	$	14.1	$	31.1	$	12.3	$	30.3	$	73.7
Variable Print		2.2		12.5		14.7		0.9		—		15.6
Strategic Services		2.8		2.0		4.8		6.3		8.1		19.2
International		14.3		3.6		17.9		1.0		—		18.9
Corporate		4.1		1.6		5.7		0.4		—		6.1
Total	$	40.4	$	33.8	$	74.2	$	20.9	$	38.4	$	133.5

Schedule of Changes in the Restructuring Reserve

The restructuring reserve as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	December 31, 2014		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2015
Employee terminations	$	13.0	$	44.3	$	(1.5	)	$	(35.6	)	$	20.2
Multi-employer pension plan withdrawal obligations		34.6		1.9		1.4			(5.0	)		32.9
Lease terminations and other		15.1		15.7		(0.1	)		(20.1	)		10.6
Total	$	62.7	$	61.9	$	(0.2	)	$	(60.7	)	$	63.7

The restructuring reserve as of December 31, 2014 and 2013, and changes during the year ended December 31, 2014, were as follows:

	December 31, 2013		Restructuring Charges		Foreign Exchange and Other			Cash Paid			December 31, 2014
Employee terminations	$	19.7	$	30.3	$	0.4		$	(37.4	)	$	13.0
Multi-employer pension plan withdrawal obligations		36.8		3.0		(0.6	)		(4.6	)		34.6
Lease terminations and other		21.1		17.8		1.3			(25.1	)		15.1
Total	$	77.6	$	51.1	$	1.1		$	(67.1	)	$	62.7

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Value of Goodwill by Segment

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows:

	Publishing and Retail Services			Variable Print			Strategic Services			International			Total
Net book value as of January 1, 2014
Goodwill	$	688.0		$	1,638.6		$	1,005.4		$	1,275.9		$	4,607.9
Accumulated impairment losses		(669.9	)		(1,105.2	)		(243.5	)		(1,153.0	)		(3,171.6	)
Total		18.1			533.4			761.9			122.9			1,436.3
Acquisitions		—			276.2			3.4			20.5			300.1
Foreign exchange and other adjustments		—			(0.7	)		(0.2	)		(10.8	)		(11.7	)
Impairment charges		(18.1	)		—			—			—			(18.1	)
Net book value as of December 31, 2014
Goodwill		688.0			1,914.1			987.5			1,213.9			4,803.5
Accumulated impairment losses		(688.0	)		(1,105.2	)		(222.4	)		(1,081.3	)		(3,096.9	)
Total		—			808.9			765.1			132.6			1,706.6
Acquisitions		51.2			2.3			7.5			5.3			66.3
Foreign exchange and other adjustments		—			(2.4	)		(0.8	)		(8.1	)		(11.3	)
Impairment charges		—			—			—			(18.0	)		(18.0	)
Net book value as of December 31, 2015
Goodwill		739.2			1,914.0			991.5			1,123.6			4,768.3
Accumulated impairment losses		(688.0	)		(1,105.2	)		(219.7	)		(1,011.8	)		(3,024.7	)
Total	$	51.2		$	808.8		$	771.8		$	111.8		$	1,743.6

Components of Other Intangible Assets

The components of other intangible assets at December 31, 2015 and 2014 were as follows:

	December 31, 2015							December 31, 2014
	Gross							Gross
	Carrying		Accumulated			Net Book		Carrying		Accumulated			Net Book
	Amount		Amortization			Value		Amount		Amortization			Value
Customer relationships	$	932.1	$	(555.3	)	$	376.8	$	865.6	$	(498.0	)	$	367.6
Patents		98.3		(98.3	)		—		98.3		(98.3	)		—
Trademarks, licenses and agreements		30.6		(29.9	)		0.7		31.5		(29.7	)		1.8
Trade names		47.5		(19.1	)		28.4		43.1		(15.6	)		27.5
Total amortizable other intangible assets		1,108.5		(702.6	)		405.9		1,038.5		(641.6	)		396.9
Indefinite-lived trade names		32.1		—			32.1		26.8		—			26.8
Total other intangible assets	$	1,140.6	$	(702.6	)	$	438.0	$	1,065.3	$	(641.6	)	$	423.7

Schedule of Other Intangible Assets Additions by Component

	December 31, 2015				December 31, 2014
	Amount		Weighted Average Amortization Period		Amount		Weighted Average Amortization Period
Customer relationships	$	98.4		11.9	$	178.2		9.7
Trade names (indefinite-lived)		5.5	n/a			8.7	n/a
Trade names (amortizable)		4.6		3.0		17.8		10.0
Non-compete agreements		0.3		4.3		0.3		3.0
Total additions	$	108.8			$	205.0

Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2015:

	Amount
2016	$	64.6
2017		58.7
2018		52.8
2019		48.6
2020		45.0
2021 and thereafter		136.2
Total	$	405.9

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Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Transactions Affecting Allowance for Doubtful Accounts

Transactions affecting the allowance for doubtful accounts receivable during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	44.3		$	44.8		$	49.6
Provisions charged to expense		15.4			16.9			18.2
Write-offs and other		(18.2	)		(17.4	)		(23.0	)
Balance, end of year	$	41.5		$	44.3		$	44.8

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Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Components of the Company's Inventories

The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2015 and 2014 were as follows:

	2015			2014
Raw materials and manufacturing supplies	$	247.2		$	261.7
Work in process		156.1			157.5
Finished goods		275.2			260.6
LIFO reserve		(86.5	)		(93.6	)
Total	$	592.0		$	586.2

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Components of Company's Property, Plant and Equipment

The components of the Company’s property, plant and equipment at December 31, 2015 and 2014 were as follows:

	2015			2014
Land	$	113.6		$	112.1
Buildings		1,224.7			1,214.8
Machinery and equipment		6,160.3			6,142.8
		7,498.6			7,469.7
Accumulated depreciation		(6,050.5	)		(5,954.2	)
Total	$	1,448.1		$	1,515.5

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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Nonrecurring Basis

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the years ended December 31, 2015, 2014 and 2013 were as follows:

	Year Ended December 31, 2015				As of December 31, 2015
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	0.3	$	—	$	—
Long-lived assets held for sale or disposal		10.0		17.9		14.4
Goodwill		18.0		—		—
Other intangible assets		11.9		—		—
Total	$	40.2	$	17.9	$	14.4

	Year Ended December 31, 2014				As of December 31, 2014
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	5.4	$	1.3	$	1.3
Long-lived assets held for sale or disposal		12.5		20.8		3.2
Goodwill		18.1		—		—
Other intangible assets		15.0		—		—
Total	$	51.0	$	22.1	$	4.5

	Year Ended December 31, 2013				As of December 31, 2013
	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Long-lived assets held and used	$	4.2	$	4.2	$	4.0
Long-lived assets held for sale or disposal		14.8		20.2		18.5
Other intangible assets		3.3		—		—
Total	$	22.3	$	24.4	$	22.5

Fair Values, 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, 2015, 2014 and 2013:

	Fair Value		Valuation Technique	Unobservable Input	Range
2015
Customer relationships	$	—	Excess earnings	Attrition rate		2.7%
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%

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Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Accrued Liabilities Current [Abstract]

Components of Accrued Liabilities

The components of the Company’s accrued liabilities at December 31, 2015 and 2014 were as follows:

	2015		2014
Employee-related liabilities	$	286.2	$	337.3
Deferred revenue		146.0		145.4
Restructuring liabilities		29.1		22.3
Other		319.1		362.3
Total accrued liabilities	$	780.4	$	867.3

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Rental Commitments Under Operating Lease

Future minimum rental commitments under operating leases are as follows:

Year Ended December 31	Amount
2016	$	131.3
2017		96.4
2018		64.1
2019		46.0
2020		34.6
2021 and thereafter		86.6
	$	459.0

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2015

Components of Net Pension and Postretirement Benefits (Income) Expense and Total (Income) Expense

The components of the net periodic benefit (income) expense and total (income) expense were as follows:

	Pension Benefits									Other Postretirement Benefits
	2015			2014			2013			2015			2014			2013
Service cost	$	1.9		$	2.2		$	2.2		$	4.7		$	4.6		$	7.3
Interest cost		178.2			194.5			178.2			16.0			16.8			16.2
Expected return on plan assets		(246.0	)		(259.0	)		(241.9	)		(13.1	)		(13.9	)		(11.8	)
Amortization of prior service credit		—			—			—			(26.9	)		(25.8	)		(19.7	)
Amortization of actuarial loss		40.5			31.9			50.5			—			—			—
Settlements		0.2			95.7			0.7			—			—			—
Net periodic benefit (income) expense	$	(25.2	)	$	65.3		$	(10.3	)	$	(19.3	)	$	(18.3	)	$	(8.0	)
Weighted average assumption used to calculate net periodic benefit expense:
Discount rate		4.1	%		5.0	%		4.2	%		3.9	%		4.5	%		3.9	%
Rate of compensation increase		0.2	%		0.2	%		0.3	%	n/a			n/a			n/a
Expected return on plan assets		7.3	%		7.6	%		7.9	%		7.3	%		7.3	%		7.3	%

Reconciliation of Benefit Obligation, Plan Assets and Funded Status of Plans

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Benefit obligation at beginning of year	$	4,452.2		$	3,952.7		$	424.6		$	382.3
Service cost		1.9			2.2			4.7			4.6
Interest cost		178.2			194.5			16.0			16.8
Plan participants' contributions		—			0.5			10.7			13.8
Medicare reimbursements		—			—			5.7			4.2
Actuarial (gain) loss		(284.9	)		652.3			(46.3	)		43.1
Plan amendments and other		—			—			(0.1	)		(7.4	)
Curtailments and settlements		—			(317.7	)		—			—
Foreign currency translation		(48.6	)		(35.3	)		(8.0	)		(4.2	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Divestitures		(0.4	)		—			—			—
Acquisitions		3.1			176.4			0.4			6.0
Benefit obligation at end of year	$	4,105.8		$	4,452.2		$	375.1		$	424.6
Fair value of plan assets at beginning of year	$	3,841.8		$	3,707.3		$	212.6		$	206.8
Actual return on assets		(31.3	)		455.4			(1.1	)		11.5
Settlements		—			(317.7	)		—			—
Employer contributions		15.4			30.9			10.2			11.0
Medicare reimbursements		—			—			5.7			4.2
Plan participants' contributions		—			0.5			10.7			13.8
Acquisitions		2.0			170.2			—			—
Foreign currency translation		(37.1	)		(31.4	)		—			(0.1	)
Benefits paid		(195.7	)		(173.4	)		(32.6	)		(34.6	)
Fair value of plan assets at end of year	$	3,595.1		$	3,841.8		$	205.5		$	212.6
Funded status at end of year	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

Amounts Recognized on Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Prepaid pension cost (included in other noncurrent assets)	$	15.2		$	14.4		$	—		$	—
Accrued benefit cost (included in accrued liabilities)		(11.5	)		(8.7	)		(0.8	)		(1.2	)
Pension liabilities		(514.4	)		(616.1	)		—			—
Other postretirement benefits plan liabilities		—			—			(168.8	)		(210.8	)
Net liabilities recognized in the Consolidated Balance Sheets	$	(510.7	)	$	(610.4	)	$	(169.6	)	$	(212.0	)

Amounts in Accumulated Other Comprehensive Loss

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 and 2014 were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015		2014
Accumulated other comprehensive (loss) income
Net actuarial (loss) gain	$	(1,229.9	)	$	(1,284.8	)	$	24.1	$	(8.0	)
Net transition obligation		(0.1	)		(0.1	)		—		—
Net prior service credit		—			—			31.5		58.3
Total	$	(1,230.0	)	$	(1,284.9	)	$	55.6	$	50.3

Amounts Recognized in Other Comprehensive Income (Loss)

The pre-tax amounts recognized in other comprehensive income (loss) in 2015 as components of net periodic benefit costs were as follows:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	40.5	$	—
Net prior service credit		—		(26.9	)
Amounts arising during the period:
Net actuarial loss		7.9		32.0
Divestiture		3.8		—
Net prior service credit		—		0.1
Settlements		0.2		—
Foreign currency loss		2.5		0.1
Total	$	54.9	$	5.3

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2016 are shown below:

	Pension Benefits		Other Postretirement Benefits
Amortization of:
Net actuarial loss	$	31.3	$	—
Net prior service credit		—		(16.0	)
Total	$	31.3	$	(16.0	)

Weighted Average Assumptions Used to Determine Benefit Obligation

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Discount rate		4.5	%		4.1	%		4.2	%		3.9	%
Health care cost trend:
Current
Pre-Age 65		—			—			6.1	%		7.9	%
Post-Age 65		—			—			6.1	%		7.9	%
Ultimate		—			—			4.9	%		4.9	%

Summary of Projected Benefit Obligations in Excess of Plan Assets

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Projected benefit obligation	$	3,703.9	$	4,251.0
Fair value of plan assets		3,178.1		3,626.3

Accumulated Benefit Obligations in Excess of Plan Assets

The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2015 and 2014:

	Pension Benefits
	2015		2014
Accumulated benefit obligation	$	3,686.0	$	4,225.5
Fair value of plan assets		3,175.9		3,622.9

Effects of One-percentage Point Change in Assumed Health Care Cost Trend Rates

The current health care cost trend rate gradually declines through 2019 to the ultimate trend rate and remains level thereafter. A one-percentage point change in assumed health care cost trend rates would have the following effects:

	1.0% Increase		1.0% Decrease
Other postretirement benefits obligation	$	6.3	$	(5.1	)
Total other postretirement benefits service and interest cost components		0.6		(0.6	)

Expected Benefit Payments

Benefit payments are expected to be paid as follows:

	Pension Benefits		Other Postretirement Benefits-Gross		Estimated Subsidy Reimbursements
2016	$	214.8	$	28.0	$	2.2
2017		217.0		28.8		2.4
2018		221.6		29.7		2.6
2019		227.7		29.9		2.8
2020		234.4		30.0		3.0
2021-2025		1,231.3		146.4		17.1

Changes in Fair Value of Level 3 Assets

The following table provides a summary of changes in the fair value of the Company’s Level 3 assets:

	Private Equity
Balance at January 1, 2014	$	43.4
Unrealized gains - net		13.6
Purchases, sales and settlements		(9.7	)
Balance at December 31, 2014	$	47.3
Unrealized gains - net		11.9
Purchases, sales and settlements		(14.1	)
Balance at December 31, 2015	$	45.1

Pension Plans, Defined Benefit

Allocation of Plan Assets

The fair values of the Company’s pension plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015								December 31, 2014
Asset Category	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	136.2	$	105.5	$	30.7	$	—	$	66.4	$	44.1	$	22.3	$	—
Equity		1,534.0		904.3		629.7		—		1,751.7		997.5		754.2		—
Fixed income		1,713.9		36.6		1,677.3		—		1,830.6		43.0		1,787.6		—
Derivatives and other		19.4		1.4		18.0		—		12.8		0.8		12.0		—
Real estate		146.5		—		146.5		—		133.0		—		133.0		—
Private equity		45.1		—		—		45.1		47.3		—		—		47.3
Total	$	3,595.1	$	1,047.8	$	2,502.2	$	45.1	$	3,841.8	$	1,085.4	$	2,709.1	$	47.3

Other Postretirement Benefit Plans, Defined Benefit

Allocation of Plan Assets

The fair values of the Company’s other postretirement benefits plan assets at December 31, 2015 and 2014, by asset category were as follows:

	December 31, 2015						December 31, 2014
Asset Category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	5.4	$	—	$	5.4	$	0.8	$	—	$	0.8
Equity		139.5		—		139.5		150.8		—		150.8
Fixed income		53.8		—		53.8		46.6		—		46.6
Other		6.8		1.2		5.6		14.4		1.0		13.4
Total	$	205.5	$	1.2	$	204.3	$	212.6	$	1.0	$	211.6

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Components of Earnings from Operations Before Income Taxes

Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2015, 2014 and 2013:

	2015		2014		2013
U.S.	$	230.6	$	8.5	$	66.7
Foreign		37.2		138.6		142.3
Total	$	267.8	$	147.1	$	209.0

Components of Income Tax Expense (Benefit) from Operations

The components of income tax expense (benefit) from operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Federal:
Current	$	112.7		$	50.1		$	(15.1	)
Deferred		(34.9	)		(64.3	)		(23.9	)
State:
Current		15.8			13.9			(4.8	)
Deferred		(7.5	)		(3.8	)		(2.6	)
Foreign:
Current		37.0			49.3			51.8
Deferred		6.3			(18.9	)		(14.6	)
Total	$	129.4		$	26.3		$	(9.2	)

Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate

The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate:

	2015			2014			2013
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Change in valuation allowances		6.0			0.9			3.1
Venezuelan devaluation and sale		4.9			1.3			—
State and local income taxes, net of U.S. federal income tax benefit		3.6			3.1			2.4
Impairment charges		2.3			4.3			—
Acquisition-related expenses		1.6			0.9			0.7
Foreign tax		0.8			1.7			4.0
Adjustment of uncertain tax positions and interest		0.5			(1.8	)		(6.2	)
Reorganization		—			(10.1	)		(32.8	)
Domestic manufacturing deduction		(3.8	)		(3.0	)		(0.1	)
Foreign tax rate differential		(6.9	)		(13.4	)		(11.3	)
Other		4.3			(1.0	)		0.8
Effective income tax rate		48.3	%		17.9	%		(4.4	%)

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows:

	2015			2014
Deferred tax assets:
Pension and other postretirement benefits plan liabilities	$	293.7		$	349.1
Net operating losses and other tax carryforwards		293.4			341.6
Accrued liabilities		166.0			164.3
Foreign depreciation		36.7			38.7
Other		41.0			34.6
Total deferred tax assets		830.8			928.3
Valuation allowances		(233.5	)		(257.8	)
Net deferred tax assets	$	597.3		$	670.5
Deferred tax liabilities:
Accelerated depreciation	$	(203.4	)	$	(204.8	)
Other intangible assets		(163.4	)		(143.2	)
Inventories		(24.0	)		(24.4	)
Other		(35.8	)		(34.5	)
Total deferred tax liabilities		(426.6	)		(406.9	)
Net deferred tax assets	$	170.7		$	263.6

Transactions Affecting Valuation Allowance On Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance, beginning of year	$	257.8		$	268.2		$	273.6
Current year expense-net		16.1			1.3			6.4
Write-offs		(20.3	)		(2.8	)		(8.3	)
Foreign exchange and other		(20.1	)		(8.9	)		(3.5	)
Balance, end of year	$	233.5		$	257.8		$	268.2

Unrecognized Tax Benefits

Changes in the Company’s unrecognized tax benefits at December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Balance at beginning of year	$	58.5		$	33.8		$	47.9
Acquisitions		—			30.9			—
Additions for tax positions of the current year		1.8			1.9			2.1
Additions for tax positions of prior years		4.6			0.4			3.7
Reductions for tax positions of prior years		(5.3	)		(1.4	)		(16.2	)
Settlements during the year		(0.3	)		(2.9	)		(0.7	)
Lapses of applicable statutes of limitations		(3.0	)		(4.2	)		(3.0	)
Balance at end of year	$	56.3		$	58.5		$	33.8

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Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of the Company's Debt

The Company’s debt at December 31, 2015 and 2014 consisted of the following:

	2015			2014
5.50% senior notes due May 15, 2015	$	—		$	200.0
8.60% senior notes due August 15, 2016		219.6			219.1
6.125% senior notes due January 15, 2017		251.2			251.0
7.25% senior notes due May 15, 2018		250.0			250.0
11.25% senior notes due February 1, 2019 (a)		172.2			172.2
8.25% senior notes due March 15, 2019		238.9			238.9
7.625% senior notes due June 15, 2020		350.0			350.0
7.875% senior notes due March 15, 2021		448.5			448.3
8.875% debentures due April 15, 2021		80.9			80.9
7.00% senior notes due February 15, 2022		400.0			400.0
6.50% senior notes due November 15, 2023		350.0			350.0
6.00% senior notes due April 1, 2024		400.0			400.0
6.625% debentures due April 15, 2029		199.5			199.5
8.820% debentures due April 15, 2031		69.0			69.0
Other (b)		18.7			3.6
Unamortized debt issuance costs		(25.6	)		(30.5	)
Total debt		3,422.9			3,602.0
Less: current portion		(234.6	)		(203.4	)
Long-term debt	$	3,188.3		$	3,398.6

(a) As of December 31, 2015 and 2014, the interest rate on the 11.25% senior notes due February 1, 2019 was 12.75% as a result of downgrades in the ratings of the notes by the rating agencies. As a result of a ratings downgrade on February 2, 2016, the interest rate increased from 12.75% to 13.0% in February 2016.

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

________________________

Future Maturities of Debt

At December 31, 2015, the future maturities of debt, including capitalized leases, were as follows:

	Amount
2016	$	234.8
2017		254.3
2018		250.2
2019		411.1
2020		350.0
2021 and thereafter		1,950.0
Total (a)	$	3,450.4

__________________

(a) Excludes unamortized debt issuance costs of $25.6 million, a discount of $2.6 million and an adjustment for fair value hedges of $0.7 million related to the Company’s 8.25% senior notes due March 15, 2019, which do not represent contractual commitments with a fixed amount or maturity date.

Summary Of Interest Expense

The following table summarizes interest expense included in the Consolidated Statements of Operations:

	2015			2014			2013
Interest incurred	$	285.2		$	294.6		$	276.0
Less: interest income		(5.3	)		(8.9	)		(11.5	)
Less: interest capitalized as property, plant and equipment		(3.9	)		(3.6	)		(3.1	)
Interest expense, net	$	276.0		$	282.1		$	261.4

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2015

Derivative [Line Items]

Schedule of Fair Value of Derivatives Designated and Not Designated as Hedges

At December 31, 2015 and 2014, 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 Consolidated Balance Sheets in which the fair value amounts were included, were as follows:

	2015		2014
Derivatives not designated as hedges
Prepaid expenses and other current assets	$	1.8	$	7.0
Accrued liabilities		1.5		0.5
Derivatives designated as fair value hedges
Other noncurrent assets	$	0.4	$	—
Other noncurrent liabilities		—		1.2

Schedule of Pre-Tax (Gains) Losses Related to Derivatives Not Designated as Hedges

The pre-tax (gains) losses related to derivatives not designated as hedges recognized in the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Derivatives not designated as hedges
Foreign exchange forward contracts	Selling, general and administrative expenses	$	(28.2	)	$	(33.5	)	$	17.0

Fair Value Hedging

Derivative [Line Items]

Schedule of Pre-Tax (Gains) Losses for Derivatives Designated as Fair Value Hedges

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) loss on the related interest rate swaps for the years ended December 31, 2015, 2014 and 2013 were as follows:

	Classification of (Gain) Loss Recognized in the
	Consolidated Statements of Operations	2015			2014			2013
Fair Value Hedges
Interest rate swaps	Investment and other expense-net	$	(1.7	)	$	(2.1	)	$	22.5
Hedged items	Investment and other expense-net		1.3			1.3			(20.8	)
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	Investment and other expense-net	$	(0.4	)	$	(0.8	)	$	1.7

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule of Earnings per Share

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.73	$	0.59	$	1.16
Diluted	$	0.73	$	0.59	$	1.15
Dividends declared per common share	$	1.04	$	1.04	$	1.04
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	151.1	$	117.4	$	211.2
Denominator:
Weighted average number of common shares outstanding		205.6		198.5		181.9
Dilutive options and awards		1.2		1.5		1.6
Diluted weighted average number of common shares outstanding		206.8		200.0		183.5
Weighted average number of anti-dilutive share-based awards:
Stock options		2.0		2.0		3.9
Performance share units		0.7		0.7		0.6
Restricted stock units		—		—		1.5
Total		2.7		2.7		6.0

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Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Components of Other Comprehensive (loss) Income and Income Tax Expense Allocated to Each Component

The components of other comprehensive (loss) income and income tax expense allocated to each component for the years ended December 31, 2015, 2014 and 2013 was as follows:

	2015								2014									2013
	Before Tax Amount			Income Tax Expense		Net of Tax Amount			Before Tax Amount			Income Tax Expense			Net of Tax Amount			Before Tax Amount			Income Tax Expense		Net of Tax Amount
Translation adjustments	$	(55.7	)	$	—	$	(55.7	)	$	(45.2	)	$	—		$	(45.2	)	$	(22.8	)	$	—	$	(22.8	)
Adjustment for net periodic pension and other postretirement benefits plan cost		60.2			25.4		34.8			(390.9	)		(150.0	)		(240.9	)		919.0			355.3		563.7
Change in fair value of derivatives		0.1			—		0.1			0.2			0.1			0.1			0.6			0.2		0.4
Other comprehensive (loss) income	$	4.6		$	25.4	$	(20.8	)	$	(435.9	)	$	(149.9	)	$	(286.0	)	$	896.8		$	355.5	$	541.3

Summary of Changes in Accumulated Other Comprehensive Loss

The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2015, 2014 and 2013:

	Changes in the Fair Value of Derivatives			Pension and Other Postretirement Benefits Plan Cost			Translation Adjustments			Total
Balance at January 1, 2013	$	(0.6	)	$	(1,085.1	)	$	56.5		$	(1,029.2	)
Other comprehensive income (loss) before reclassifications		—			543.9			(23.0	)		520.9
Amounts reclassified from accumulated other comprehensive loss		0.4			19.8			—			20.2
Net change in accumulated other comprehensive loss		0.4			563.7			(23.0	)		541.1
Balance at December 31, 2013	$	(0.2	)	$	(521.4	)	$	33.5		$	(488.1	)
Other comprehensive loss before reclassifications		—			(303.4	)		(34.7	)		(338.1	)
Amounts reclassified from accumulated other comprehensive loss		0.1			62.5			—			62.6
Amounts reclassified from cumulative translation adjustment		—			—			(10.0	)		(10.0	)
Net change in accumulated other comprehensive loss		0.1			(240.9	)		(44.7	)		(285.5	)
Balance at December 31, 2014	$	(0.1	)	$	(762.3	)	$	(11.2	)	$	(773.6	)
Other comprehensive income (loss) before reclassifications		—			22.1			(67.6	)		(45.5	)
Amounts reclassified from accumulated other comprehensive loss		0.1			8.9			—			9.0
Amounts reclassified due to disposition of an operating entity		—			3.8			13.1			16.9
Net change in accumulated other comprehensive loss		0.1			34.8			(54.5	)		(19.6	)
Balance at December 31, 2015	$	—		$	(727.5	)	$	(65.7	)	$	(793.2	)

Reclassifications from Accumulated Other Comprehensive Loss Amortization of Pension and Other postretirement Benefits Plan Cost

Reclassifications from accumulated other comprehensive loss for the year ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013			Classification in the Consolidated Statements of Operations
Amortization of pension and other postretirement benefits plan cost:
Net actuarial loss	$	40.5		$	31.9		$	50.5		(a)
Net prior service credit		(26.9	)		(25.8	)		(19.7	)	(a)
Curtailments and settlements		0.2			95.7			0.7		(a)
Reclassifications before tax		13.8			101.8			31.5
Income tax expense		4.9			39.3			11.7
Reclassifications, net of tax	$	8.9		$	62.5		$	19.8

(a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense recognized in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Operations (see Note 11).

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Stock and Incentive Programs for Employees and Directors (Tables)

12 Months Ended

Dec. 31, 2015

Share Based Compensation [Abstract]

Schedule of Stock Option Activity

Stock option awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding at December 31, 2014		3,847		$	19.43		4.7	$	12.6
Exercised		(135	)		13.21
Cancelled/forfeited/expired		(5	)		13.23
Outstanding at December 31, 2015		3,707			19.66		3.6		8.4
Vested and expected to vest at December 31, 2015		3,701			19.67		3.6		8.4
Exercisable at December 31, 2015		1,455		$	9.22		4.2	$	8.0

Nonvested Restricted Stock Unit Awards

Nonvested restricted stock unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015 were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		2,045		$	12.54
Granted		701			17.14
Vested		(1,010	)		13.71
Forfeited		(66	)		13.55
Nonvested at December 31, 2015		1,670		$	13.72

Schedule of Nonvested Performance Share Units Activity

Nonvested performance share unit awards as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014		804		$	11.87
Granted		418			16.73
Expired/forfeited		(5	)		16.73
Vested		(485	)		8.85
Nonvested at December 31, 2015		732		$	16.61

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

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, 2015
Publishing and Retail Services	$	2,556.3	$	(34.6	)	$	2,521.7	$	77.3		$	1,334.4	$	148.3	$	35.0
Variable Print		3,817.6		(55.2	)		3,762.4		250.7			2,496.2		152.6		56.9
Strategic Services		2,849.4		(171.5	)		2,677.9		257.5			1,404.9		66.1		49.0
International		2,402.7		(107.9	)		2,294.8		71.4			1,675.3		83.5		47.8
Total operating segments		11,626.0		(369.2	)		11,256.8		656.9			6,910.8		450.5		188.7
Corporate		—		—			—		(69.5	)		368.5		3.5		18.9
Total operations	$	11,626.0	$	(369.2	)	$	11,256.8	$	587.4		$	7,279.3	$	454.0	$	207.6
Year ended December 31, 2014
Publishing and Retail Services	$	2,646.1	$	(13.8	)	$	2,632.3	$	86.1		$	1,215.7	$	145.1	$	43.5
Variable Print		3,829.7		(61.8	)		3,767.9		240.8			2,649.5		157.2		53.0
Strategic Services		2,744.8		(137.3	)		2,607.5		257.4			1,366.6		65.5		41.0
International		2,691.2		(95.5	)		2,595.7		106.7			1,865.4		98.8		68.3
Total operating segments		11,911.8		(308.4	)		11,603.4		691.0			7,097.2		466.6		205.8
Corporate		—		—			—		(175.1	)		511.6		7.4		17.8
Total operations	$	11,911.8	$	(308.4	)	$	11,603.4	$	515.9		$	7,608.8	$	474.0	$	223.6
Year ended December 31, 2013
Publishing and Retail Services	$	2,777.7	$	(2.9	)	$	2,774.8	$	109.6		$	1,369.6	$	166.0	$	57.7
Variable Print		2,650.7		(57.9	)		2,592.8		197.9			1,567.1		103.4		63.4
Strategic Services		2,587.7		(134.7	)		2,453.0		232.8			1,355.6		58.4		34.9
International		2,746.9		(87.2	)		2,659.7		147.3			2,060.0		102.5		50.8
Total operating segments		10,763.0		(282.7	)		10,480.3		687.6			6,352.3		430.3		206.8
Corporate		—		—			—		(107.9	)		852.8		5.5		9.8
Total operations	$	10,763.0	$	(282.7	)	$	10,480.3	$	579.7		$	7,205.1	$	435.8	$	216.6

Schedule of Corporate Assets

Corporate assets primarily consisted of the following items at December 31, 2015, 2014 and 2013:

	2015			2014			2013
Cash and cash equivalents	$	(45.8	)	$	94.6		$	494.9
Deferred income tax assets, net of valuation allowances		169.9			152.0			39.2
Software, net		98.8			82.1			71.1
Deferred compensation plan assets and Company owned life insurance assets		92.1			86.0			79.5
Property, plant and equipment, net		61.6			61.2			61.7
LIFO reserves		(86.5	)		(93.6	)		(92.0	)

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Geographic Area and Products and Services Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Net Sales and Long-Lived Assets by Geographic Region

The table below presents net sales and long-lived assets by geographic region. The amounts in this table differ from the segment data presented in Note 19 because each operating segment includes operations in multiple geographic regions based on the Company’s management reporting structure.

	U.S.		Europe		Asia		Other		Consolidated
2015
Net sales	$	8,937.7	$	905.0	$	832.3	$	581.8	$	11,256.8
Long-lived assets (a)		1,601.8		141.0		112.1		141.1		1,996.0
2014
Net sales	$	8,974.2	$	983.1	$	860.1	$	786.0	$	11,603.4
Long-lived assets (a)		1,671.1		154.0		129.0		181.6		2,135.7
2013
Net sales	$	7,866.2	$	975.2	$	841.5	$	797.4	$	10,480.3
Long-lived assets (a)		1,435.7		160.7		152.2		175.8		1,924.4

(a) Includes net property, plant and equipment, noncurrent deferred tax assets and other noncurrent assets.

Revenues by Products and Services

The following table summarizes net sales by the Company’s products and services categories for the years ended December 31, 2015, 2014 and 2013:

Products and services	2015 Net Sales		2014 Net Sales		2013 Net Sales
Magazines, catalogs and retail inserts	$	1,950.5	$	2,223.5	$	2,370.0
Commercial and digital print		1,885.0		1,851.7		966.4
Books		1,237.9		1,149.4		1,202.2
Financial print		681.7		722.2		775.1
Statements		607.5		641.3		666.0
Office products		560.2		496.3		238.9
Direct mail		524.4		613.2		571.7
Labels		500.6		523.3		488.1
Packaging and related products		489.3		484.0		464.3
Forms		358.1		462.1		491.9
Global Turnkey Solutions		345.8		341.7		305.4
Directories		182.6		206.5		225.8
Total products		9,323.6		9,715.2		8,765.8
Logistics services		1,270.4		1,211.3		1,105.9
Financial print related services		309.0		292.3		230.2
Business process outsourcing		193.4		195.8		188.8
Digital and creative solutions		160.4		188.8		189.6
Total services		1,933.2		1,888.2		1,714.5
Total net sales	$	11,256.8	$	11,603.4	$	10,480.3

XML

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Detail) $ in Millions		12 Months Ended			36 Months Ended
	Aug. 04, 2015 Entity	Dec. 31, 2015 USD ($) Customer	Dec. 31, 2014 USD ($) Customer	Dec. 31, 2013 USD ($) Customer	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of entities resulting from expected spinoff of an entity	3
Number of entities in which shareholders will likely to receive tax-free distribution of shares	2
Number of entities in which shareholders will own shares after spinoff	3
Number of single customers comprising more than 10% of consolidated net sales | Customer		0	0	0
Percentage of net sales per customer, maximum		10.00%	10.00%	10.00%
Percentage of inventory valued at LIFO		57.60%	59.80%		57.60%	59.80%
Annual goodwill impairment testing date		--10-31
Computer Software, Intangible Asset
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Amortization expense, primarily related to internally-developed software | $		$ 44.0	$ 41.2	$ 34.1
Minimum | Buildings
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		15 years
Minimum | Machinery and Equipment
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		3 years
Maximum | Computer Software, Intangible Asset
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of computer software		5 years
Maximum | Buildings
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		40 years
Maximum | Leasehold Improvements
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		7 years
Maximum | Machinery and Equipment
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		15 years
Devaluation of Venezuelan Bolivar
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Maximum three year cumulative inflation using the blended Consumer Price Index and National Consumer Price Index					100.00%	100.00%	100.00%	100.00%	100.00%	100.00%

XML

Acquisitions and Dispositions - Narrative (Detail) - USD ($) shares in Millions, $ in Millions				3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 08, 2015	Mar. 25, 2014	Jan. 31, 2014	Dec. 31, 2013	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Apr. 29, 2015	Aug. 15, 2014	Mar. 10, 2014	Feb. 07, 2014
Business Acquisition [Line Items]
Business acquisition, loss before income taxes						$ (190.7)	$ (131.7)
Restructuring, impairment and other charges						122.6	133.7	$ 133.5
Inventory purchase accounting, adjustment reversal						10.8	3.5
Acquisition-related expenses						14.3	8.6	5.9
Tax deductible goodwill						17.3
Gain on bargain purchase							9.5
International
Business Acquisition [Line Items]
Restructuring, impairment and other charges						52.2	22.3	18.9
Gain (loss) on disposition of business				$ (17.9)
Loss due to cash incentive payments to purchaser						18.8
Cash incentive paid to the purchaser							16.4
International | RRDA
Business Acquisition [Line Items]
Net sales							22.1	55.8
Gain (loss) before income taxes							(3.4)	(2.8)
Bankruptcy liquidation on effective of court approval							16.4
International | GRES
Business Acquisition [Line Items]
Gain (loss) on disposition of business							(0.8)
Net proceeds of disposition of business												$ 1.8
International | 2015 Disposition
Business Acquisition [Line Items]
Gain (loss) on disposition of business						(14.7)
Net sales						16.3	101.5	97.5
Gain (loss) before income taxes						$ (38.4)	4.3	16.0
International | Venezuelan Operating Entity | 2015 Disposition
Business Acquisition [Line Items]
Joint venture, ownership percentage						50.10%			50.10%
Variable Print
Business Acquisition [Line Items]
Restructuring, impairment and other charges						$ 21.4	44.8	15.6
Strategic Services
Business Acquisition [Line Items]
Restructuring, impairment and other charges						13.1	11.6	$ 19.2
Strategic Services | Journalism Online
Business Acquisition [Line Items]
Gain (loss) on disposition of business							11.2
Net proceeds of disposition of business										$ 10.5
Proceeds from divestiture of business					$ 10.5
Loss recognized as a result of final sale price adjustment						0.2
Gain (loss) on disposition of business after adjustments						$ 11.0
Courier Corporation
Business Acquisition [Line Items]
Purchase price of acquisition, cash	$ 137.3
Issuance of common stock shares for acquisitions of businesses	8.0					8.0
Transaction value of acquisition	$ 291.5
Debt assumed	78.2
Cash acquired from acquisition	$ 20.9
Business acquisition, net sales						$ 185.6
Business acquisition, loss before income taxes						13.1
Restructuring, impairment and other charges						31.3
Inventory purchase accounting, adjustment reversal						$ 10.8
Esselte Corporation | Variable Print
Business Acquisition [Line Items]
Purchase price of acquisition, cash		$ 82.3
Issuance of common stock shares for acquisitions of businesses		1.0
Transaction value of acquisition		$ 100.6
Fair value of the identifiable net assets acquired		$ 110.1
Gain on bargain purchase							$ 9.5
MultiCorpora R&D Inc. and MultiCorpora International Inc | Strategic Services
Business Acquisition [Line Items]
Fair value of the identifiable net assets acquired											$ 6.0
Consolidated Graphics, Inc
Business Acquisition [Line Items]
Issuance of common stock shares for acquisitions of businesses							16.0
Consolidated Graphics, Inc | Variable Print and International segments
Business Acquisition [Line Items]
Purchase price of acquisition, cash			$ 359.9
Issuance of common stock shares for acquisitions of businesses			16.0
Debt assumed			$ 118.4
Fair value of the identifiable net assets acquired			$ 660.6
Esselte Multi Corpora And Consolidated Graphics Acquisition
Business Acquisition [Line Items]
Tax deductible goodwill							$ 73.4

XML

Acquisitions and Dispositions - Schedule of Purchase Price Allocation for Acquisitions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 1,706.6	$ 1,743.6	$ 1,436.3
Less: gain on bargain purchase	9.5
Courier Corporation, 3 Insignificant Acquisitions
Business Acquisition [Line Items]
Accounts receivable		36.2
Inventories		59.0
Prepaid expenses and other current assets		38.8
Property, plant and equipment		163.8
Other intangible assets		108.8
Other noncurrent assets		7.9
Goodwill		66.3
Accounts payable and accrued liabilities		(24.6)
Other noncurrent liabilities		(10.5)
Deferred taxes-net		(83.7)
Total purchase price-net of cash acquired		362.0
Less: debt assumed		80.2
Less: settlement of accounts receivable for acquisition of a business		8.6
Less: value of common stock issued		155.2
Net cash paid		$ 118.0
Consolidated Graphics, Esselte and MultiCorpora
Business Acquisition [Line Items]
Accounts receivable	242.0
Inventories	89.6
Prepaid expenses and other current assets	17.5
Property, plant and equipment	337.0
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	828.0
Less: debt assumed	118.4
Less: value of common stock issued	319.0
Less: gain on bargain purchase	9.5
Net cash paid	$ 381.1

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Acquisitions and Dispositions - Fair Value, Valuation Techniques and Related Unobservable Inputs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Customer Relationships
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 98.4	$ 178.2
Customer Relationships | Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 0.0	$ 0.0	$ 0.0
Discount rate			16.00%
Attrition rate	2.70%
Customer Relationships | Fair Value, Inputs, Level 3 | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate		12.00%
Attrition rate		6.60%
Customer Relationships | Fair Value, Inputs, Level 3 | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate		18.00%
Attrition rate		12.00%
Trade Names
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 4.6	$ 17.8
Non-Compete Agreements
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	0.3	0.3
Courier Corporation | Customer Relationships | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 98.4
Valuation Technique	Excess earnings
Courier Corporation | Customer Relationships | Fair Value, Inputs, Level 3 | Minimum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate	14.00%
Attrition rate	0.00%
Courier Corporation | Customer Relationships | Fair Value, Inputs, Level 3 | Maximum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate	17.00%
Attrition rate	7.50%
Courier Corporation | Trade Names | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 10.1
Valuation Technique	Relief-from-royalty method
Discount rate	12.00%
Courier Corporation | Trade Names | Fair Value, Inputs, Level 3 | Minimum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Royalty rate (pre-tax)	0.30%
Courier Corporation | Trade Names | Fair Value, Inputs, Level 3 | Maximum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Royalty rate (pre-tax)	1.00%
Courier Corporation | Technology | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 1.6
Valuation Technique	Relief-from-royalty method
Discount rate	11.00%
Royalty rate (pre-tax)	15.00%
Courier Corporation | Non-Compete Agreements | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 0.3
Valuation Technique	Excess earnings
Discount rate	17.00%
Consolidated Graphics, Esselte and MultiCorpora | Customer Relationships | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value		$ 178.2
Valuation Technique	Excess earnings
Consolidated Graphics, Esselte and MultiCorpora | Customer Relationships | Fair Value, Inputs, Level 3 | Minimum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate		17.00%
Attrition rate		5.00%
Consolidated Graphics, Esselte and MultiCorpora | Customer Relationships | Fair Value, Inputs, Level 3 | Maximum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Discount rate		21.00%
Attrition rate		9.50%
Consolidated Graphics, Esselte and MultiCorpora | Trade Names | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value		$ 26.5
Valuation Technique	Relief-from-royalty method
Discount rate		19.00%
Consolidated Graphics, Esselte and MultiCorpora | Trade Names | Fair Value, Inputs, Level 3 | Minimum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Royalty rate (pre-tax)		0.50%
Consolidated Graphics, Esselte and MultiCorpora | Trade Names | Fair Value, Inputs, Level 3 | Maximum | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Royalty rate (pre-tax)		1.50%
Consolidated Graphics, Esselte and MultiCorpora | Technology | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value		$ 1.1
Valuation Technique	Excess earnings
Discount rate		17.00%

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Acquisitions and Dispositions - Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Net sales	$ 11,380.1	$ 12,033.7
Net earnings attributable to RR Donnelley common shareholders	$ 190.7	$ 131.7
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$ 0.91	$ 0.63
Diluted	$ 0.91	$ 0.63
Amortization of purchased intangibles	$ 82.9	$ 89.6
Restructuring, impairment and other charges	$ 93.7	$ 129.6

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Acquisitions and Dispositions - Pro Forma Adjustments Affecting Net Earnings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Depreciation and amortization of purchased assets, pre-tax	$ 3.9	$ 1.4
Acquisition-related expenses, pre-tax	18.9	16.0
Restructuring, impairment and other charges, pre-tax	29.4	8.1
Inventory fair value adjustments, pre-tax	10.8	3.5
Other pro forma adjustments, pre-tax	1.2	(3.2)
Income taxes	$ (16.6)	$ (1.9)

XML

Restructuring, Impairment and Other Charges - Schedule of Net Restructuring, Impairment and Other Charges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost And Reserve [Line Items]
Employee Terminations	$ 44.3	$ 30.3	$ 40.4
Other Restructuring Charges	17.6	20.8	33.8
Total Restructuring Charges	61.9	51.1	74.2
Impairment	36.1	47.1	20.9
Other Charges	24.6	35.5	38.4
Total	122.6	133.7	133.5
Publishing and Retail Services
Restructuring Cost And Reserve [Line Items]
Employee Terminations	6.5	(0.2)	17.0
Other Restructuring Charges	4.6	6.4	14.1
Total Restructuring Charges	11.1	6.2	31.1
Impairment	1.0	20.8	12.3
Other Charges	19.4	23.7	30.3
Total	31.5	50.7	73.7
Variable Print
Restructuring Cost And Reserve [Line Items]
Employee Terminations	3.7	17.2	2.2
Other Restructuring Charges	6.2	9.2	12.5
Total Restructuring Charges	9.9	26.4	14.7
Impairment	9.7	10.8	0.9
Other Charges	1.8	7.6	0.0
Total	21.4	44.8	15.6
Strategic Services
Restructuring Cost And Reserve [Line Items]
Employee Terminations	6.7	3.5	2.8
Other Restructuring Charges	2.1	2.1	2.0
Total Restructuring Charges	8.8	5.6	4.8
Impairment	0.9	1.8	6.3
Other Charges	3.4	4.2	8.1
Total	13.1	11.6	19.2
International
Restructuring Cost And Reserve [Line Items]
Employee Terminations	24.2	7.3	14.3
Other Restructuring Charges	3.5	1.3	3.6
Total Restructuring Charges	27.7	8.6	17.9
Impairment	24.5	13.7	1.0
Other Charges	0.0	0.0	0.0
Total	52.2	22.3	18.9
Corporate
Restructuring Cost And Reserve [Line Items]
Employee Terminations	3.2	2.5	4.1
Other Restructuring Charges	1.2	1.8	1.6
Total Restructuring Charges	4.4	4.3	5.7
Impairment	0.0	0.0	0.4
Other Charges	0.0	0.0	0.0
Total	$ 4.4	$ 4.3	$ 6.1

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Restructuring, Impairment and Other Charges - Narrative (Detail) $ in Millions	3 Months Ended			12 Months Ended
	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) Entity Employee Facility	Dec. 31, 2014 USD ($) Employee Facility	Dec. 31, 2013 USD ($) Employee Facility
Restructuring Cost And Reserve [Line Items]
Employee termination costs				$ 44.3	$ 30.3	$ 40.4
Number of employees used to determine employee termination costs				1,939	654	1,382
Number of employees who were terminated as of date | Employee				1,719
Other restructuring charges				$ 17.6	$ 20.8	$ 33.8
Impairment charges, net				6.2	14.0	17.6
Goodwill impairment non-cash charges				18.0	18.1
impairment of intangible assets				11.9
Multi-employer pension plan withdrawal obligations
Restructuring Cost And Reserve [Line Items]
Other restructuring charges						14.7
Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets				11.9
International
Restructuring Cost And Reserve [Line Items]
Employee termination costs				$ 24.2	7.3	14.3
Number of facilities closed | Employee				2
Other restructuring charges				$ 3.5	1.3	3.6
Goodwill impairment non-cash charges	$ 18.0			18.0	0.0
International | Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		$ 7.8			7.8
International | Customer Relationship Intangible Assets
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		7.8
International | Europe
Restructuring Cost And Reserve [Line Items]
Goodwill impairment non-cash charges	13.7
International | Latin America
Restructuring Cost And Reserve [Line Items]
Goodwill impairment non-cash charges	$ 4.3
International | Latin America | Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets				2.2
Variable Print
Restructuring Cost And Reserve [Line Items]
Employee termination costs				3.7	17.2	$ 2.2
Number of facilities closed | Facility						1
Other restructuring charges				6.2	9.2	$ 12.5
Goodwill impairment non-cash charges				0.0	0.0
Variable Print | Trade Names
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets					$ 1.4
Variable Print | Consolidated Graphics, Inc
Restructuring Cost And Reserve [Line Items]
Number of facilities closed | Facility					7
Variable Print | Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		4.1
Variable Print | Customer Relationship Intangible Assets
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		4.1
Variable Print | Labels | Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets				$ 9.2
Variable Print | Other Subsegment
Restructuring Cost And Reserve [Line Items]
Number of facilities closed | Facility				1	1
Publishing and Retail Services
Restructuring Cost And Reserve [Line Items]
Employee termination costs				$ 6.5	$ (0.2)	$ 17.0
Number of facilities closed | Facility					1	2
Other restructuring charges				4.6	$ 6.4	$ 14.1
Goodwill impairment non-cash charges		18.1		$ 0.0	18.1
Publishing and Retail Services | Other Subsegment
Restructuring Cost And Reserve [Line Items]
Number of facilities closed | Facility				1
Strategic Services
Restructuring Cost And Reserve [Line Items]
Employee termination costs				$ 6.7	3.5	2.8
Other restructuring charges				2.1	2.1	$ 2.0
Goodwill impairment non-cash charges				$ 0.0	$ 0.0
Strategic Services | Customer Relationships
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		1.7	$ 3.3
Strategic Services | Customer Relationship Intangible Assets
Restructuring Cost And Reserve [Line Items]
impairment of intangible assets		$ 1.7

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Restructuring, Impairment and Other Charges - Other Charges - Narrative (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Pension_Plan	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Restructuring Cost And Reserve [Line Items]
Other Charges	$ 24.6	$ 35.5	$ 38.4
Accrued liabilities	780.4	867.3
Other noncurrent liabilities	$ 373.9	395.6
Courier Corporation
Restructuring Cost And Reserve [Line Items]
Number of multi-employer pension plans | Pension_Plan	2
Multi-employer pension plan company's contributions percentage	85.00%
Multi-employer critical zone identification contribution percentage	65.00%
Restructuring, integration charges	$ 19.1
Multi-employer pension plan withdrawal obligations
Restructuring Cost And Reserve [Line Items]
Other Charges	5.5	35.5	38.4
Accrued liabilities	11.3	14.9
Other noncurrent liabilities	$ 82.0	$ 88.1	$ 38.4

XML

Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost And Reserve [Line Items]
Balance at the beginning	$ 62.7	$ 77.6
Restructuring Charges	61.9	51.1	$ 74.2
Foreign Exchange and Other	(0.2)	1.1
Cash Paid	(60.7)	(67.1)
Balance at the end	63.7	62.7	77.6
Employee terminations
Restructuring Cost And Reserve [Line Items]
Balance at the beginning	13.0	19.7
Restructuring Charges	44.3	30.3
Foreign Exchange and Other	(1.5)	0.4
Cash Paid	(35.6)	(37.4)
Balance at the end	20.2	13.0	19.7
Multi-employer pension plan withdrawal obligations
Restructuring Cost And Reserve [Line Items]
Balance at the beginning	34.6	36.8
Restructuring Charges	1.9	3.0
Foreign Exchange and Other	1.4	(0.6)
Cash Paid	(5.0)	(4.6)
Balance at the end	32.9	34.6	36.8
Lease terminations and other
Restructuring Cost And Reserve [Line Items]
Balance at the beginning	15.1	21.1
Restructuring Charges	15.7	17.8
Foreign Exchange and Other	(0.1)	1.3
Cash Paid	(20.1)	(25.1)
Balance at the end	$ 10.6	$ 15.1	$ 21.1

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Restructuring, Impairment and Other Charges - Restructuring Reserve - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Restructuring And Related Activities [Abstract]
Current restructuring reserve (included in accrued liabilities)	$ 29.1	$ 22.3
Noncurrent restructuring reserve (included in noncurrent liabilities)	$ 34.6	$ 40.4

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Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill gross		$ 4,803.5	$ 4,768.3	$ 4,803.5	$ 4,607.9
Accumulated impairment losses		(3,096.9)	(3,024.7)	(3,096.9)	(3,171.6)
Goodwill		1,706.6	1,743.6	1,706.6	1,436.3
Acquisitions			66.3	300.1
Foreign exchange and other adjustments			(11.3)	(11.7)
Impairment charges			(18.0)	(18.1)
Publishing and Retail Services
Goodwill [Line Items]
Goodwill gross		688.0	739.2	688.0	688.0
Accumulated impairment losses		(688.0)	(688.0)	(688.0)	(669.9)
Goodwill		0.0	51.2	0.0	18.1
Acquisitions			51.2	0.0
Foreign exchange and other adjustments			0.0	0.0
Impairment charges		(18.1)	0.0	(18.1)
Variable Print
Goodwill [Line Items]
Goodwill gross		1,914.1	1,914.0	1,914.1	1,638.6
Accumulated impairment losses		(1,105.2)	(1,105.2)	(1,105.2)	(1,105.2)
Goodwill		808.9	808.8	808.9	533.4
Acquisitions			2.3	276.2
Foreign exchange and other adjustments			(2.4)	(0.7)
Impairment charges			0.0	0.0
Strategic Services
Goodwill [Line Items]
Goodwill gross		987.5	991.5	987.5	1,005.4
Accumulated impairment losses		(222.4)	(219.7)	(222.4)	(243.5)
Goodwill		765.1	771.8	765.1	761.9
Acquisitions			7.5	3.4
Foreign exchange and other adjustments			(0.8)	(0.2)
Impairment charges			0.0	0.0
International
Goodwill [Line Items]
Goodwill gross		1,213.9	1,123.6	1,213.9	1,275.9
Accumulated impairment losses		(1,081.3)	(1,011.8)	(1,081.3)	(1,153.0)
Goodwill		$ 132.6	111.8	132.6	$ 122.9
Acquisitions			5.3	20.5
Foreign exchange and other adjustments			(8.1)	(10.8)
Impairment charges	$ (18.0)		$ (18.0)	$ 0.0

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Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges				$ 18.0	$ 18.1
impairment of intangible assets				11.9
Additions to other intangible assets				108.8	205.0
Amortization expense for other intangible assets				78.5	78.1	$ 64.0
Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets				11.9
International
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges	$ 18.0			18.0	0.0
International | Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets		$ 7.8			7.8
International | Latin America
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges	$ 4.3
International | Latin America | Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets				2.2
Publishing and Retail Services
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges		18.1		0.0	18.1
Variable Print
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges				0.0	0.0
Variable Print | Trade Names
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets					1.4
Variable Print | Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets		4.1
Variable Print | Labels | Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets				9.2
Strategic Services
Schedule Of Other Intangible Assets [Line Items]
Goodwill impairment non-cash charges				$ 0.0	$ 0.0
Strategic Services | Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
impairment of intangible assets		$ 1.7	$ 3.3

XML

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Other Intangible Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	$ 1,108.5	$ 1,038.5
Accumulated Amortization, amortizable intangible assets	(702.6)	(641.6)
Net Book Value, amortizable intangible assets	405.9	396.9
Gross Carrying Amount, total other intangible assets	1,140.6	1,065.3
Net Book Value, total other intangible assets	438.0	423.7
Trade names (indefinite-lived)
Schedule Of Other Intangible Assets [Line Items]
Net Book Value, indefinite-lived trade names	32.1	26.8
Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	932.1	865.6
Accumulated Amortization, amortizable intangible assets	(555.3)	(498.0)
Net Book Value, amortizable intangible assets	376.8	367.6
Patents
Schedule Of Other Intangible Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	98.3	98.3
Accumulated Amortization, amortizable intangible assets	(98.3)	(98.3)
Trademarks, Licenses and Agreements
Schedule Of Other Intangible Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	30.6	31.5
Accumulated Amortization, amortizable intangible assets	(29.9)	(29.7)
Net Book Value, amortizable intangible assets	0.7	1.8
Trade names (indefinite-lived)
Schedule Of Other Intangible Assets [Line Items]
Gross Carrying Amount, amortizable intangible assets	47.5	43.1
Accumulated Amortization, amortizable intangible assets	(19.1)	(15.6)
Net Book Value, amortizable intangible assets	$ 28.4	$ 27.5

XML

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets Additions by Component (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Other Intangible Assets [Line Items]
Additions to other intangible assets	$ 108.8	$ 205.0
Trade names (indefinite-lived)
Schedule Of Other Intangible Assets [Line Items]
Amount	5.5	8.7
Customer Relationships
Schedule Of Other Intangible Assets [Line Items]
Amount	$ 98.4	$ 178.2
Weighted Average Amortization Period	11 years 10 months 24 days	9 years 8 months 12 days
Trade names (indefinite-lived)
Schedule Of Other Intangible Assets [Line Items]
Amount	$ 4.6	$ 17.8
Weighted Average Amortization Period	3 years	10 years
Non-Compete Agreements
Schedule Of Other Intangible Assets [Line Items]
Amount	$ 0.3	$ 0.3
Weighted Average Amortization Period	4 years 3 months 18 days	3 years

XML

Goodwill and Other Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Finite Lived Intangible Assets Roll Forward
2016	$ 64.6
2017	58.7
2018	52.8
2019	48.6
2020	45.0
2021 and thereafter	136.2
Net Book Value, amortizable intangible assets	$ 405.9	$ 396.9

XML

Accounts Receivable - Transactions Affecting Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Balance, beginning of year	$ 44.3	$ 44.8	$ 49.6
Provisions charged to expense	15.4	16.9	18.2
Write-offs and other	(18.2)	(17.4)	(23.0)
Balance, end of year	$ 41.5	$ 44.3	$ 44.8

XML

Inventories - Components of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Inventory Net [Abstract]
Raw materials and manufacturing supplies	$ 247.2	$ 261.7
Work in process	156.1	157.5
Finished goods	275.2	260.6
LIFO reserve	(86.5)	(93.6)
Total	$ 592.0	$ 586.2

XML

Inventories - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Inventory Net [Abstract]
LIFO expense (benefit)	$ (7.1)	$ 1.6	$ (0.1)

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Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Abstract]
Land	$ 113.6	$ 112.1
Buildings	1,224.7	1,214.8
Machinery and equipment	6,160.3	6,142.8
Property, plant and equipment, gross	7,498.6	7,469.7
Accumulated depreciation	(6,050.5)	(5,954.2)
Total	$ 1,448.1	$ 1,515.5

XML

Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property Plant And Equipment [Abstract]
Depreciation expense	$ 331.5	$ 354.7	$ 337.7

XML

Fair Value Measurement - Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-lived assets held for sale or disposal, impairment charge	$ 6.2	$ 14.0	$ 17.6
Goodwill, impairment charge	18.0	18.1
impairment of intangible assets	11.9
Total, impairment charge	36.5	47.3	21.5
Goodwill	1,743.6	1,706.6	1,436.3
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	0.3	5.4	4.2
Long-lived assets held for sale or disposal, impairment charge	10.0	12.5	14.8
Goodwill, impairment charge	18.0	18.1
impairment of intangible assets	11.9	15.0	3.3
Total, impairment charge	40.2	51.0	22.3
Long-lived assets held and used, net book value		1.3	4.0
Long-lived assets held for sale or disposal, net book value	14.4	3.2	18.5
Goodwill	0.0	0.0
Other intangible assets, net book value	0.0	0.0	0.0
Total Assets	14.4	4.5	22.5
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		1.3	4.2
Long-lived assets held for sale or disposal, fair value measurement	17.9	20.8	20.2
Goodwill, fair value measurement	0.0	0.0
Other intangible assets, fair value measurement	0.0	0.0	0.0
Total, fair value measurement	$ 17.9	$ 22.1	$ 24.4

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Fair Value Measurement - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair values reduced by estimated costs to sell		$ 0.4	$ 1.2	$ 1.4
impairment of intangible assets		11.9
Finite-lived intangible assets	$ 396.9	405.9	396.9
Magazines, catalogs and retail inserts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Goodwill, fair value measurement	0.0		0.0
Customer Relationships
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets		11.9
Finite-lived intangible assets	367.6	376.8	367.6
Customer Relationships | Financial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets			1.7
Other intangible assets, fair value measurement				101.2
Finite-lived intangible assets	84.0		84.0
Customer Relationships | Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other intangible assets, fair value measurement				$ 0.0
Customer Relationships | Variable Print
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets	4.1
Customer Relationships | International
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets	7.8		7.8
Finite-lived intangible assets	0.2		0.2
Customer Relationships | Labels | Variable Print
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets		9.2
Other intangible assets, fair value measurement		0.0
Customer Relationships | Commercial and Digital Print
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets			4.1
Finite-lived intangible assets	181.8		181.8
Trade Names
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets			1.4
Finite-lived intangible assets	27.5	28.4	27.5
Trade Names | Commercial and Digital Print
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other intangible assets, fair value measurement	14.3		14.3
Trade Names | Commercial and Digital Print | Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other intangible assets, fair value measurement	$ 0.0		$ 0.0
Europe and Latin America
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Goodwill, fair value measurement		0.0
Latin America | Customer Relationships | International
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
impairment of intangible assets		2.2
Other intangible assets, fair value measurement		$ 0.9

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Fair Value Measurement - Fair Value, Valuation Techniques and Related Unobservable Inputs for Level Three (Detail) - Customer Relationships - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 98.4	$ 178.2
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 0.0	$ 0.0	$ 0.0
Discount rate			16.00%
Attrition rate	2.70%
Fair Value, Inputs, Level 3 | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rate		12.00%
Attrition rate		6.60%
Fair Value, Inputs, Level 3 | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rate		18.00%
Attrition rate		12.00%

XML

Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accrued Liabilities Current [Abstract]
Employee-related liabilities	$ 286.2	$ 337.3
Deferred revenue	146.0	145.4
Restructuring liabilities	29.1	22.3
Other	319.1	362.3
Total accrued liabilities	$ 780.4	$ 867.3

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Commitments and Contingencies - Narrative (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Facility	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Committed total of property, plant and equipment expenditure	$ 46.8
Severance payments related to restructuring	20.2
Commitments for outsourced services	111.3
Commitment to purchase natural gas	7.3
Operating lease commitments	459.0
Minimum non-cancelable sublease rental commitments	33.9
Rent expense	$ 172.2	$ 173.2	$ 149.4
Number of sites cited as potentially responsible party | Facility	12
Number of previously and currently owned sites with potential remediation obligations | Facility	10

XML

Commitments and Contingencies - Future Minimum Rental Commitments Under Operating Lease (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2016	$ 131.3
2017	96.4
2018	64.1
2019	46.0
2020	34.6
2021 and thereafter	86.6
Future minimum rental commitments under operating leases	$ 459.0

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Retirement Plans - Narrative (Detail) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) Pension_Plan	Dec. 31, 2014 USD ($) Pension_Plan	Dec. 31, 2013 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Reduction in pension obligation			$ 404.0
Pension and other post retirement non-cash settlement expense	$ 95.7
Pension and postretirement contributions		$ 25.6	41.9	$ 29.6
Defined benefit plan, accumulated benefit obligation	$ 4,428.5	$ 4,088.8	4,428.5
Threshold for recognition in net periodic benefit costs, percentage of projected benefit obligation or fair value of plan assets		10.00%
Other Charges		$ 24.6	35.5	38.4
Multi-employer plan, period contributions		$ 0.2	0.3	1.3
Courier Corporation
Defined Benefit Plan Disclosure [Line Items]
Multi-employer pension plan company's contributions percentage		85.00%
Number of multi-employer pension plans | Pension_Plan		2
Multi-employer pension plan withdrawal obligations
Defined Benefit Plan Disclosure [Line Items]
Other Charges		$ 5.5	$ 38.5	38.4
Multi-employer pension plan withdrawal obligations | Complete And Partial Withdrawal From Multi Employer Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Other Charges				53.1
Multi-employer pension plan withdrawal obligations | Facility closures
Defined Benefit Plan Disclosure [Line Items]
Other Charges				14.7
Multi-Employer Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Number of multi-employer Pension plans withdrawn from | Pension_Plan			4
Multi-Employer Pension Plans | Multi-employer pension plan withdrawal obligations
Defined Benefit Plan Disclosure [Line Items]
Other Charges		$ 5.5	$ 35.5
Multi-Employer Pension Plans | Multi-employer pension plan withdrawal obligations | Facility closures
Defined Benefit Plan Disclosure [Line Items]
Other Charges			3.0
Hedging Investments
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation percentage		40.00%
Return Seeking Securities
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation percentage		60.00%
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Reduction in pension obligation		$ 0.0	0.0
Benefits Paid		195.7	173.4
Increased benefit obligations			310.0
Pension and postretirement contributions		15.4
Medicare reimbursements		0.0	0.0
Other Postretirement Benefit Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Reduction in pension obligation		0.1	7.4
Benefits Paid		32.6	34.6
Pension and postretirement contributions		10.2
Medicare reimbursements		5.7	4.2
Pension and Retirement Benefit Plans | Minimum
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement expected contributions for next year		25.0
Pension and Retirement Benefit Plans | Maximum
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement expected contributions for next year		30.0
Postretirement Life Insurance
Defined Benefit Plan Disclosure [Line Items]
Reduction in pension obligation				$ 30.1
EGWP
Defined Benefit Plan Disclosure [Line Items]
Medicare reimbursements		$ 5.7
Lump Sum Pension Payment Or Annuity
Defined Benefit Plan Disclosure [Line Items]
Benefits Paid			$ 317.7

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Retirement Plans - Components of Net Pension and Postretirement Benefits (Income) Expense and Total (Income) Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Settlements		$ 95.7
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1.9	2.2	$ 2.2
Interest cost	178.2	194.5	178.2
Expected return on plan assets	(246.0)	(259.0)	(241.9)
Amortization of prior service credit	0.0	0.0	0.0
Amortization of actuarial loss	40.5	31.9	50.5
Settlements	0.2	95.7	0.7
Net periodic benefit (income) expense	$ (25.2)	$ 65.3	$ (10.3)
Discount rate	4.10%	5.00%	4.20%
Rate of compensation increase	0.20%	0.20%	0.30%
Expected return on plan assets	7.30%	7.60%	7.90%
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4.7	$ 4.6	$ 7.3
Interest cost	16.0	16.8	16.2
Expected return on plan assets	(13.1)	(13.9)	(11.8)
Amortization of prior service credit	(26.9)	(25.8)	(19.7)
Amortization of actuarial loss	0.0	0.0	0.0
Settlements	0.0	0.0	0.0
Net periodic benefit (income) expense	$ (19.3)	$ (18.3)	$ (8.0)
Discount rate	3.90%	4.50%	3.90%
Expected return on plan assets	7.30%	7.30%	7.30%

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Retirement Plans - Reconciliation of Benefit Obligation, Plan Assets and Funded Status of Plans (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Plan amendments and other		$ (404.0)
Pension Benefits
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	$ 4,452.2	3,952.7
Service cost	1.9	2.2	$ 2.2
Interest cost	178.2	194.5	178.2
Plan participants' contributions	0.0	0.5
Medicare reimbursements	0.0	0.0
Actuarial (gain) loss	(284.9)	652.3
Plan amendments and other	0.0	0.0
Curtailments and settlements	0.0	(317.7)
Foreign currency translation	(48.6)	(35.3)
Benefits paid	(195.7)	(173.4)
Divestitures	(0.4)
Acquisitions	3.1	176.4
Benefit obligation at end of year	4,105.8	4,452.2	3,952.7
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	3,841.8	3,707.3
Actual return on assets	(31.3)	455.4
Settlements	0.0	(317.7)
Employer contributions	15.4	30.9
Medicare reimbursements	0.0	0.0
Plan participants' contributions	0.0	0.5
Acquisitions	2.0	170.2
Foreign currency translation	(37.1)	(31.4)
Benefits paid	(195.7)	(173.4)
Fair value of plan assets at end of year	3,595.1	3,841.8	3,707.3
Funded status at end of year	(510.7)	(610.4)
Other Postretirement Benefits
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	424.6	382.3
Service cost	4.7	4.6	7.3
Interest cost	16.0	16.8	16.2
Plan participants' contributions	10.7	13.8
Medicare reimbursements	5.7	4.2
Actuarial (gain) loss	(46.3)	43.1
Plan amendments and other	(0.1)	(7.4)
Curtailments and settlements	0.0	0.0
Foreign currency translation	(8.0)	(4.2)
Benefits paid	(32.6)	(34.6)
Acquisitions	0.4	6.0
Benefit obligation at end of year	375.1	424.6	382.3
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	212.6	206.8
Actual return on assets	(1.1)	11.5
Settlements	0.0	0.0
Employer contributions	10.2	11.0
Medicare reimbursements	5.7	4.2
Plan participants' contributions	10.7	13.8
Acquisitions	0.0	0.0
Foreign currency translation	0.0	(0.1)
Benefits paid	(32.6)	(34.6)
Fair value of plan assets at end of year	205.5	212.6	$ 206.8
Funded status at end of year	$ (169.6)	$ (212.0)

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Retirement Plans - Amounts Recognized on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit cost (included in accrued liabilities)	$ (780.4)	$ (867.3)
Pension liabilities	(514.4)	(616.1)
Other postretirement benefits plan liabilities	(168.8)	(210.8)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Prepaid pension cost (included in other noncurrent assets)	15.2	14.4
Accrued benefit cost (included in accrued liabilities)	(11.5)	(8.7)
Pension liabilities	(514.4)	(616.1)
Other postretirement benefits plan liabilities	0.0	0.0
Net liabilities recognized in the Consolidated Balance Sheets	(510.7)	(610.4)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Prepaid pension cost (included in other noncurrent assets)	0.0	0.0
Accrued benefit cost (included in accrued liabilities)	(0.8)	(1.2)
Pension liabilities	0.0	0.0
Other postretirement benefits plan liabilities	(168.8)	(210.8)
Net liabilities recognized in the Consolidated Balance Sheets	$ (169.6)	$ (212.0)

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Retirement Plans - Amounts in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (loss) gain	$ (1,229.9)	$ (1,284.8)
Net transition obligation	(0.1)	(0.1)
Net prior service credit	0.0	0.0
Total	(1,230.0)	(1,284.9)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (loss) gain	24.1	(8.0)
Net transition obligation	0.0	0.0
Net prior service credit	31.5	58.3
Total	$ 55.6	$ 50.3

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Retirement Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Total	$ (60.2)	$ 390.9	$ (919.0)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Amortization of Net actuarial loss	40.5
Amortization of Net prior service credit	0.0
Amounts arising during the period, Net actuarial loss	7.9
Amounts arising during the period, Divestiture	3.8
Amounts arising during the period, Net prior service credit	0.0
Amounts arising during the period, Settlements	0.2
Amounts arising during the period, Foreign currency loss	2.5
Total	54.9
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Amortization of Net actuarial loss	0.0
Amortization of Net prior service credit	(26.9)
Amounts arising during the period, Net actuarial loss	32.0
Amounts arising during the period, Divestiture	0.0
Amounts arising during the period, Net prior service credit	0.1
Amounts arising during the period, Settlements	0.0
Amounts arising during the period, Foreign currency loss	0.1
Total	$ 5.3

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Retirement Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 31.3
Net prior service credit	0.0
Total	31.3
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	0.0
Net prior service credit	(16.0)
Total	$ (16.0)

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Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Ultimate	0.00%	0.00%
Discount rate	4.50%	4.10%
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Ultimate	4.90%	4.90%
Discount rate	4.20%	3.90%
Pre-Age 65 | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Current	0.00%	0.00%
Pre-Age 65 | Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Current	6.10%	7.90%
Post-Age 65 | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Current	0.00%	0.00%
Post-Age 65 | Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend, Current	6.10%	7.90%

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Retirement Plans - Summary of Projected Benefit Obligations in Excess of Plan Assets (Detail) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 3,703.9	$ 4,251.0
Fair value of plan assets	$ 3,178.1	$ 3,626.3

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Retirement Plans - Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]
Accumulated benefit obligation	$ 3,686.0	$ 4,225.5
Fair value of plan assets	$ 3,175.9	$ 3,622.9

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Retirement Plans - Effects of One-percentage Point Change in Assumed Health Care Cost Trend Rates (Detail) - Other Postretirement Benefits $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Other postretirement benefit obligation, 1% increase	$ 6.3
Total other postretirement benefits service and interest cost components, 1% increase	0.6
Other postretirement benefit obligation, 1% decrease	(5.1)
Total other postretirement benefits service and interest cost components, 1% decrease	$ (0.6)

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Retirement Plans - Expected Benefit Payments (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2016	$ 214.8
2017	217.0
2018	221.6
2019	227.7
2020	234.4
2021-2025	1,231.3
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
2016	28.0
2017	28.8
2018	29.7
2019	29.9
2020	30.0
2021-2025	146.4
Estimated Subsidy Reimbursements
Defined Benefit Plan Disclosure [Line Items]
2016	2.2
2017	2.4
2018	2.6
2019	2.8
2020	3.0
2021-2025	$ 17.1

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Retirement Plans - Allocation of Plan Assets, Pension Plan (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Private Equity | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	$ 45.1	$ 47.3	$ 43.4
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	3,595.1	3,841.8	$ 3,707.3
Pension Benefits | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1,047.8	1,085.4
Pension Benefits | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	2,502.2	2,709.1
Pension Benefits | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	45.1	47.3
Pension Benefits | Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	136.2	66.4
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	105.5	44.1
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	30.7	22.3
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1,534.0	1,751.7
Pension Benefits | Equity | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	904.3	997.5
Pension Benefits | Equity | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	629.7	754.2
Pension Benefits | Equity | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1,713.9	1,830.6
Pension Benefits | Fixed Income | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	36.6	43.0
Pension Benefits | Fixed Income | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1,677.3	1,787.6
Pension Benefits | Fixed Income | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Derivatives and Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	19.4	12.8
Pension Benefits | Derivatives and Other | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1.4	0.8
Pension Benefits | Derivatives and Other | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	18.0	12.0
Pension Benefits | Derivatives and Other | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	146.5	133.0
Pension Benefits | Real Estate | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Real Estate | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	146.5	133.0
Pension Benefits | Real Estate | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Private Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	45.1	47.3
Pension Benefits | Private Equity | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Private Equity | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Pension Benefits | Private Equity | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	$ 45.1	$ 47.3

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Retirement Plans - Allocation of Plan Assets, Postretirement Benefit Plan (Detail) - Other Postretirement Benefits - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	$ 205.5	$ 212.6	$ 206.8
Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1.2	1.0
Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	204.3	211.6
Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	5.4	0.8
Cash and Cash Equivalents | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Cash and Cash Equivalents | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	5.4	0.8
Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	139.5	150.8
Equity | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Equity | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	139.5	150.8
Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	53.8	46.6
Fixed Income | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	0.0	0.0
Fixed Income | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	53.8	46.6
Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	6.8	14.4
Other | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	1.2	1.0
Other | Fair Value, Inputs, Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the company's benefit plan assets	$ 5.6	$ 13.4

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Retirement Plans - Changes in Fair Value of Level Three Assets (Detail) - Fair Value, Inputs, Level 3 - Private Equity - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	$ 47.3	$ 43.4
Unrealized gains - net	11.9	13.6
Purchases, sales and settlements	(14.1)	(9.7)
Fair value of plan assets at end of year	$ 45.1	$ 47.3

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Income Taxes - Components of Earnings From Operations Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components Of Income Tax Expense Benefit Continuing Operations [Abstract]
U.S.	$ 230.6	$ 8.5	$ 66.7
Foreign	37.2	138.6	142.3
Earnings before income taxes	$ 267.8	$ 147.1	$ 209.0

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Income Taxes - Components of Income Tax Expense (Benefit) From Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal, Current	$ 112.7	$ 50.1	$ (15.1)
Federal, Deferred	(34.9)	(64.3)	(23.9)
State, Current	15.8	13.9	(4.8)
State, Deferred	(7.5)	(3.8)	(2.6)
Foreign, Current	37.0	49.3	51.8
Foreign, Deferred	6.3	(18.9)	(14.6)
Total	$ 129.4	$ 26.3	$ (9.2)

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Income Taxes - Reconciliation From Federal Statutory Tax Rate to Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]
Federal statutory tax rate	35.00%	35.00%	35.00%
Change in valuation allowances	6.00%	0.90%	3.10%
Venezuelan devaluation and sale	4.90%	1.30%	0.00%
State and local income taxes, net of U.S. federal income tax benefit	3.60%	3.10%	2.40%
Impairment charges	2.30%	4.30%	0.00%
Acquisition-related expenses	1.60%	0.90%	0.70%
Foreign tax	0.80%	1.70%	4.00%
Adjustment of uncertain tax positions and interest	0.50%	(1.80%)	(6.20%)
Reorganization	0.00%	(10.10%)	(32.80%)
Domestic manufacturing deduction	(3.80%)	(3.00%)	(0.10%)
Foreign tax rate differential	(6.90%)	(13.40%)	(11.30%)
Other	4.30%	(1.00%)	0.80%
Effective income tax rate	48.30%	17.90%	(4.40%)

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Income Taxes - Narrative (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income tax expense settlement related to prior year taxes in international segments	$ 6,000,000
Recognized tax benefits			$ 7,200,000
Net operating loss and other carryforwards expiring between 2016 and 2025	127,000,000
Deferred tax liabilities related to foreign earnings	4,300,000	$ 2,600,000
Undistributed earnings of foreign subsidiaries	1,600,000,000
Cash payments for income taxes	134,000,000	125,500,000	99,000,000
Cash refunds for income taxes	19,900,000	13,900,000	12,100,000
Income tax benefit associated with dispositions of employee stock options	3,200,000	2,900,000	900,000
Unrecognized tax benefits	56,300,000	58,500,000	33,800,000	$ 47,900,000
Unrecognized tax benefits that would impact effective tax rate	37,700,000
Amount of unrecognized tax benefit that will decrease within 12 months	16,500,000
Total interest expense, net of tax benefits related to remaining tax uncertainties	1,100,000	100,000
Total interest benefit, net of tax benefits related to remaining tax uncertainties			1,800,000
Penalty amounts recognized	0	100,000	2,600,000
Accrued interest related to income tax uncertainties	7,000,000	5,600,000
Accrued penalties related to income tax uncertainties	0	0
Domestic
Domestic and foreign net operating loss carryforwards	88,200,000	98,400,000
Foreign
Domestic and foreign net operating loss carryforwards	$ 205,200,000	243,200,000
Strategic Services
Income tax benefits from value decline		$ 15,200,000
Publishing and Retail Services
Income tax benefits from value decline and reorganization			$ 58,500,000

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Income Taxes - Schedule of Significant Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Components Of Deferred Tax Assets And Liabilities [Abstract]
Pension and other postretirement benefits plan liabilities	$ 293.7	$ 349.1
Net operating losses and other tax carryforwards	293.4	341.6
Accrued liabilities	166.0	164.3
Foreign depreciation	36.7	38.7
Other	41.0	34.6
Total deferred tax assets	830.8	928.3
Valuation allowances	(233.5)	(257.8)
Net deferred tax assets	597.3	670.5
Accelerated depreciation	(203.4)	(204.8)
Other intangible assets	(163.4)	(143.2)
Inventories	(24.0)	(24.4)
Other	(35.8)	(34.5)
Total deferred tax liabilities	(426.6)	(406.9)
Net deferred tax assets	$ 170.7	$ 263.6

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Income Taxes - Schedule of Transactions Affecting Valuation Allowance on Deferred Tax Assets (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation Allowance [Line Items]
Balance, beginning of year	$ 257.8	$ 268.2	$ 273.6
Current year expense-net	16.1	1.3	6.4
Write-offs	(20.3)	(2.8)	(8.3)
Foreign exchange and other	(20.1)	(8.9)	(3.5)
Balance, end of year	$ 233.5	$ 257.8	$ 268.2

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Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
Balance at beginning of year	$ 58.5	$ 33.8	$ 47.9
Acquisitions	0.0	30.9	0.0
Additions for tax positions of the current year	1.8	1.9	2.1
Additions for tax positions of prior years	4.6	0.4	3.7
Reductions for tax positions of prior years	(5.3)	(1.4)	(16.2)
Settlements during the year	(0.3)	(2.9)	(0.7)
Lapses of applicable statutes of limitations	(3.0)	(4.2)	(3.0)
Balance at end of year	$ 56.3	$ 58.5	$ 33.8

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Debt - Schedule of the Company's Debt (Detail) - USD ($) $ in Millions		Dec. 31, 2015	Dec. 31, 2014	Mar. 20, 2014	Mar. 13, 2012
Debt Instrument [Line Items]
Other	[1]	$ 18.7	$ 3.6
Unamortized debt issuance costs		(25.6)	(30.5)
Total debt		3,422.9	3,602.0
Less: current portion		(234.6)	(203.4)
Long-term debt		3,188.3	3,398.6
5.50% Senior Notes Due May 15, 2015
Debt Instrument [Line Items]
Senior notes			200.0
8.60% Senior Notes Due August 15, 2016
Debt Instrument [Line Items]
Senior notes		219.6	219.1
6.125% Senior Notes Due January 15, 2017
Debt Instrument [Line Items]
Senior notes		251.2	251.0
7.25% Senior Notes Due May 15, 2018
Debt Instrument [Line Items]
Senior notes		250.0	250.0
11.25% Senior Notes Due February 1, 2019
Debt Instrument [Line Items]
Senior notes	[2]	172.2	172.2
8.25% Senior Notes Due March 15, 2019
Debt Instrument [Line Items]
Senior notes		238.9	238.9		$ 450.0
Unamortized debt issuance costs		(25.6)
7.625% Senior Notes Due June 15, 2020
Debt Instrument [Line Items]
Senior notes		350.0	350.0
7.875% Senior Notes Due March 15, 2021
Debt Instrument [Line Items]
Senior notes		448.5	448.3
8.875% Debentures Due April 15, 2021
Debt Instrument [Line Items]
Debentures		80.9	80.9
7.00% Senior Notes Due February 15, 2022
Debt Instrument [Line Items]
Senior notes		400.0	400.0
6.50% Senior Notes Due November 15, 2023
Debt Instrument [Line Items]
Senior notes		350.0	350.0
6.00% Senior Notes Due due April 1, 2024
Debt Instrument [Line Items]
Senior notes		400.0	400.0	$ 400.0
6.625% Debentures Due April 15, 2029
Debt Instrument [Line Items]
Debentures		199.5	199.5
8.820% Debentures Due April 15, 2031
Debt Instrument [Line Items]
Debentures		$ 69.0	$ 69.0

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

[2] As of December 31, 2015 and 2014, the interest rate on the 11.25% senior notes due February 1, 2019 was 12.75% as a result of downgrades in the ratings of the notes by the rating agencies. As a result of a ratings downgrade on February 2, 2016, the interest rate increased from 12.75% to 13.0% in February 2016.

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Debt - Schedule of the Company's Debt (Parenthetical) (Detail)			12 Months Ended
	Mar. 20, 2014	Mar. 13, 2012	Dec. 31, 2015	Feb. 29, 2016	Dec. 31, 2014
5.50% Senior Notes Due May 15, 2015
Debt Instrument [Line Items]
Interest rate			5.50%
Maturity date			May 15, 2015
8.60% Senior Notes Due August 15, 2016
Debt Instrument [Line Items]
Interest rate			8.60%
Maturity date			Aug. 15, 2016
6.125% Senior Notes Due January 15, 2017
Debt Instrument [Line Items]
Interest rate			6.125%
Maturity date			Jan. 15, 2017
7.25% Senior Notes Due May 15, 2018
Debt Instrument [Line Items]
Interest rate	7.25%		7.25%
Maturity date	May 15, 2018		May 15, 2018
11.25% Senior Notes Due February 1, 2019
Debt Instrument [Line Items]
Interest rate			11.25%
Maturity date			Feb. 01, 2019
Effective interest rate			12.75%		12.75%
11.25% Senior Notes Due February 1, 2019 | Scenario Forecast
Debt Instrument [Line Items]
Effective interest rate				13.00%
8.25% Senior Notes Due March 15, 2019
Debt Instrument [Line Items]
Interest rate	8.25%	8.25%	8.25%		8.25%
Maturity date	Mar. 15, 2019	Mar. 15, 2019	Mar. 15, 2019
7.625% Senior Notes Due June 15, 2020
Debt Instrument [Line Items]
Interest rate	7.625%		7.625%
Maturity date	Jun. 15, 2020		Jun. 15, 2020
7.875% Senior Notes Due March 15, 2021
Debt Instrument [Line Items]
Interest rate			7.875%
Maturity date			Mar. 15, 2021
8.875% Debentures Due April 15, 2021
Debt Instrument [Line Items]
Interest rate			8.875%
Maturity date			Apr. 15, 2021
7.00% Senior Notes Due February 15, 2022
Debt Instrument [Line Items]
Interest rate			7.00%
Maturity date			Feb. 15, 2022
6.50% Senior Notes Due November 15, 2023
Debt Instrument [Line Items]
Interest rate			6.50%
Maturity date			Nov. 15, 2023
6.00% Senior Notes Due due April 1, 2024
Debt Instrument [Line Items]
Interest rate			6.00%
Maturity date			Apr. 01, 2024
6.625% Debentures Due April 15, 2029
Debt Instrument [Line Items]
Interest rate			6.625%
Maturity date			Apr. 15, 2029
8.820% Debentures Due April 15, 2031
Debt Instrument [Line Items]
Interest rate			8.82%
Maturity date			Apr. 15, 2031

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Debt - Narrative (Detail) - USD ($)					1 Months Ended	12 Months Ended
	May. 15, 2015	Mar. 20, 2014	Mar. 13, 2012	Apr. 09, 2010	Mar. 31, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Amount of difference between fair value and book value						$ 39,700,000	$ 259,500,000
Unamortized debt issuance cost						$ 25,600,000	$ 30,500,000
Weighted average interest rate on borrowings						2.00%	2.00%
Repayment of Debt						$ 272,700,000	$ 811,500,000	$ 830,400,000
Loss on debt extinguishment						0	77,100,000	81,900,000
Outstanding letters of credit						91,300,000
Interest paid, net of interest received						$ 271,300,000	272,800,000	$ 245,000,000
5.50% Senior Notes Due May 15, 2015
Debt Instrument [Line Items]
Repayment of Debt	$ 200,000,000
Interest rate						5.50%
Maturity date						May 15, 2015
Senior notes							200,000,000
4.95% Senior Notes Due due April 1, 2014
Debt Instrument [Line Items]
Repayment of Debt					$ 341,800,000	$ 258,200,000
Interest rate				4.95%	4.95%	4.95%
Maturity date				Apr. 01, 2014	Apr. 01, 2014	Apr. 01, 2014
6.00% Senior Notes Due due April 1, 2024
Debt Instrument [Line Items]
Interest rate						6.00%
Maturity date						Apr. 01, 2024
Senior notes		$ 400,000,000				$ 400,000,000	400,000,000
8.25% Senior Notes Due March 15, 2019
Debt Instrument [Line Items]
Unamortized debt issuance cost						$ 25,600,000
Repayment of Debt		$ 211,100,000					$ 211,100,000
Interest rate		8.25%	8.25%			8.25%	8.25%
Maturity date		Mar. 15, 2019	Mar. 15, 2019			Mar. 15, 2019
Senior notes			$ 450,000,000			$ 238,900,000	$ 238,900,000
7.25% Senior Notes Due May 15, 2018
Debt Instrument [Line Items]
Repayment of Debt		$ 100,000,000
Interest rate		7.25%				7.25%
Maturity date		May 15, 2018				May 15, 2018
Senior notes						$ 250,000,000	250,000,000
7.625% Senior Notes Due June 15, 2020
Debt Instrument [Line Items]
Repayment of Debt		$ 50,000,000
Interest rate		7.625%				7.625%
Maturity date		Jun. 15, 2020				Jun. 15, 2020
Senior notes						$ 350,000,000	350,000,000
Debt Instruments Extinguished Three
Debt Instrument [Line Items]
Loss on debt extinguishment							77,100,000
Gain due to termination of related interest rate swaps							2,800,000
Credit Agreements
Debt Instrument [Line Items]
Allowable annual dividend payment under credit agreement						225,000,000
Outstanding letters of credit						55,600,000
Foreign Facilities
Debt Instrument [Line Items]
Total amount of revolving credit agreement						167,600,000
Other Facilities
Debt Instrument [Line Items]
Outstanding letters of credit						81,700,000
Combined Facilities
Debt Instrument [Line Items]
Credit facility borrowings						11,200,000	2,500,000
Revolving Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance cost						13,200,000	16,300,000
Total amount of revolving credit agreement						$ 1,500,000,000
Line of credit facility, expiration date						Sep. 09, 2019
Line of credit facility amendment date						Sep. 09, 2014
Revolving Credit Facility | Scenario, Previously Reported
Debt Instrument [Line Items]
Total amount of revolving credit agreement						$ 1,150,000,000
Line of credit facility, expiration date						Oct. 15, 2017
Long Term Debt | Accounting Standards Update 2015-03 and 2015-15
Debt Instrument [Line Items]
Unamortized debt issuance cost						$ 25,600,000	$ 30,500,000

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Debt - Future Maturities Of Debt (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Long Term Debt Maturities
2016	$ 234.8
2017	254.3
2018	250.2
2019	411.1
2020	350.0
2021 and thereafter	1,950.0
Total	$ 3,450.4	[1]

[1] Excludes unamortized debt issuance costs of $25.6 million, a discount of $2.6 million and an adjustment for fair value hedges of $0.7 million related to the Company’s 8.25% senior notes due March 15, 2019, which do not represent contractual commitments with a fixed amount or maturity date.

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Debt - Future Maturities Of Debt (Parenthetical) (Detail) - USD ($) $ in Millions			12 Months Ended
	Mar. 20, 2014	Mar. 13, 2012	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Unamortized debt issuance cost			$ 25.6	$ 30.5
8.25% Senior Notes Due March 15, 2019
Debt Instrument [Line Items]
Unamortized debt issuance cost			25.6
Discount on senior notes			$ 2.6
Interest rate	8.25%	8.25%	8.25%	8.25%
Maturity date	Mar. 15, 2019	Mar. 15, 2019	Mar. 15, 2019
Senior Notes
Debt Instrument [Line Items]
Adjustment for fair value hedges			$ 0.7

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Debt - Summary Of Interest Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instruments [Abstract]
Interest incurred	$ 285.2	$ 294.6	$ 276.0
Less: interest income	(5.3)	(8.9)	(11.5)
Less: interest capitalized as property, plant and equipment	(3.9)	(3.6)	(3.1)
Interest expense, net	$ 276.0	$ 282.1	$ 261.4

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Derivatives - Narrative (Detail) - USD ($) $ in Millions				1 Months Ended	12 Months Ended
	Mar. 20, 2014	Mar. 13, 2012	Apr. 09, 2010	Mar. 31, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Repayment of Debt					$ 272.7	$ 811.5	$ 830.4
Fair Value Hedging
Derivative [Line Items]
Reduction to interest expense					2.0	3.8	$ 8.7
8.25% Senior Notes Due March 15, 2019
Derivative [Line Items]
Derivative, inception date		Mar. 13, 2012
Senior notes		$ 450.0			$ 238.9	$ 238.9
Interest rate	8.25%	8.25%			8.25%	8.25%
Maturity date	Mar. 15, 2019	Mar. 15, 2019			Mar. 15, 2019
Repayment of Debt	$ 211.1					$ 211.1
4.95% Senior Notes Due April 1, 2014
Derivative [Line Items]
Derivative, inception date			Apr. 09, 2010
Interest rate			4.95%	4.95%	4.95%
Maturity date			Apr. 01, 2014	Apr. 01, 2014	Apr. 01, 2014
Repayment of Debt				$ 341.8	$ 258.2
Interest Rate Swap
Derivative [Line Items]
Terminated portion of interest rate swap agreement, notional amount				342.0		210.0
Payment for termination of interest rate swaps						4.2
Proceeds from termination of interest rate swaps				$ 11.0
Not Designated as Hedging Instrument | Foreign Exchange Contract
Derivative [Line Items]
Aggregate notional value					$ 268.4	377.2
Designated Fair Value Hedges | Interest Rate Swap
Derivative [Line Items]
Aggregate notional value		$ 400.0	$ 600.0			$ 190.0

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Derivatives - Schedule of Fair Value of Derivatives Designated and Not Designated as Hedges (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivatives assets	$ 1.8	$ 7.0
Not Designated as Hedging Instrument | Accrued Liabilities
Derivatives Fair Value [Line Items]
Derivatives liabilities	1.5	0.5
Designated Fair Value Hedges | Other Noncurrent Assets
Derivatives Fair Value [Line Items]
Derivatives assets	0.4	0.0
Designated Fair Value Hedges | Other Non-current Liabilities
Derivatives Fair Value [Line Items]
Derivatives liabilities	$ 0.0	$ 1.2

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Derivatives - Schedule of Pre-Tax (Gains) Losses Related to Derivatives Not Designated as Hedges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Not Designated as Hedging Instrument | Foreign Exchange Forward Contracts | Selling, general and administrative expenses
Derivative Instruments Gain Loss [Line Items]
Classification of (Gain) Loss Recognized in the Consolidated Statements of Operations	$ (28.2)	$ (33.5)	$ 17.0

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Derivatives - Schedule of Gains (Losses) for Derivatives Designated as Fair Value Hedges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments Gain Loss [Line Items]
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	$ (0.4)	$ (0.8)	$ 1.7
Interest Rate Swap | Investment and other expense-net
Derivative Instruments Gain Loss [Line Items]
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	(1.7)	(2.1)	22.5
Hedged Items | Investment and other expense-net
Derivative Instruments Gain Loss [Line Items]
Total (gain) loss recognized as ineffectiveness in the Consolidated Statements of Operations	$ 1.3	$ 1.3	$ (20.8)

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Earnings per Share - Narrative (Detail) - shares		12 Months Ended
	Jun. 08, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Line Items]
Treasury stock, shares acquired		0	0	0
Courier Corporation
Earnings Per Share [Line Items]
Issuance of common stock shares for acquisitions of businesses	8,000,000	8,000,000
Consolidated Graphics, Inc
Earnings Per Share [Line Items]
Issuance of common stock shares for acquisitions of businesses			16,000,000
Esselte
Earnings Per Share [Line Items]
Issuance of common stock shares for acquisitions of businesses			1,000,000

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Earnings per Share - Earnings per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share Basic And Diluted [Line Items]
Basic	$ 0.73	$ 0.59	$ 1.16
Diluted	0.73	0.59	1.15
Dividends declared per common share	$ 1.04	$ 1.04	$ 1.04
Net earnings attributable to RR Donnelley common shareholders	$ 151.1	$ 117.4	$ 211.2
Weighted average number of common shares outstanding	205.6	198.5	181.9
Dilutive options and awards	1.2	1.5	1.6
Diluted weighted average number of common shares outstanding	206.8	200.0	183.5
Weighted average antidilutive securities excluded from computation of earnings per share	2.7	2.7	6.0
Stock options
Earnings Per Share Basic And Diluted [Line Items]
Weighted average antidilutive securities excluded from computation of earnings per share	2.0	2.0	3.9
Performance share units
Earnings Per Share Basic And Diluted [Line Items]
Weighted average antidilutive securities excluded from computation of earnings per share	0.7	0.7	0.6
Restricted stock units
Earnings Per Share Basic And Diluted [Line Items]
Weighted average antidilutive securities excluded from computation of earnings per share	0.0	0.0	1.5

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Comprehensive Income - Schedule of Components of Other Comprehensive (loss) Income and Income Tax Expense Allocated to Each Component (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Translation adjustments - Before Tax Amount	$ (55.7)	$ (45.2)	$ (22.8)
Adjustment for net periodic pension and other postretirement benefits plan cost - Before Tax Amount	60.2	(390.9)	919.0
Change in fair value of derivatives - Before Tax Amount	0.1	0.2	0.6
Other comprehensive (loss) income - Before Tax Amount	4.6	(435.9)	896.8
Translation adjustments - Income Tax Expense	0.0	0.0	0.0
Adjustment for net periodic pension and other postretirement benefits plan cost - Income Tax Expense	25.4	(150.0)	355.3
Change in fair value of derivatives - Income Tax Expense	0.0	0.1	0.2
Other comprehensive (loss) income - Income Tax Expense	25.4	(149.9)	355.5
Translation adjustments - Net of Tax Amount	(55.7)	(45.2)	(22.8)
Adjustment for net periodic pension and other postretirement benefits plan cost - Net of Tax Amount	34.8	(240.9)	563.7
Change in fair value of derivatives - Net of Tax Amount	0.1	0.1	0.4
Other comprehensive (loss) income	$ (20.8)	$ (286.0)	$ 541.3

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Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income Loss [Line Items]
Balance at Beginning of Period	$ (773.6)	$ (488.1)	$ (1,029.2)
Other comprehensive income (loss) before reclassifications	(45.5)	(338.1)	520.9
Amounts reclassified from accumulated other comprehensive loss	9.0	62.6	20.2
Amounts reclassified from cumulative translation adjustment		(10.0)
Amounts reclassified due to disposition of an operating entity	16.9
Net change in accumulated other comprehensive loss	(19.6)	(285.5)	541.1
Balance at End of Period	(793.2)	(773.6)	(488.1)
Changes in the Fair Value of Derivatives
Accumulated Other Comprehensive Income Loss [Line Items]
Balance at Beginning of Period	(0.1)	(0.2)	(0.6)
Other comprehensive income (loss) before reclassifications	0.0	0.0	0.0
Amounts reclassified from accumulated other comprehensive loss	0.1	0.1	0.4
Amounts reclassified from cumulative translation adjustment		0.0
Amounts reclassified due to disposition of an operating entity	0.0
Net change in accumulated other comprehensive loss	0.1	0.1	0.4
Balance at End of Period	0.0	(0.1)	(0.2)
Pension and Other Postretirement Benefits Plan Cost
Accumulated Other Comprehensive Income Loss [Line Items]
Balance at Beginning of Period	(762.3)	(521.4)	(1,085.1)
Other comprehensive income (loss) before reclassifications	22.1	(303.4)	543.9
Amounts reclassified from accumulated other comprehensive loss	8.9	62.5	19.8
Amounts reclassified from cumulative translation adjustment		0.0
Amounts reclassified due to disposition of an operating entity	3.8
Net change in accumulated other comprehensive loss	34.8	(240.9)	563.7
Balance at End of Period	(727.5)	(762.3)	(521.4)
Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance at Beginning of Period	(11.2)	33.5	56.5
Other comprehensive income (loss) before reclassifications	(67.6)	(34.7)	(23.0)
Amounts reclassified from accumulated other comprehensive loss	0.0	0.0	0.0
Amounts reclassified from cumulative translation adjustment		(10.0)
Amounts reclassified due to disposition of an operating entity	13.1
Net change in accumulated other comprehensive loss	(54.5)	(44.7)	(23.0)
Balance at End of Period	$ (65.7)	$ (11.2)	$ 33.5

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Comprehensive Income - Schedule of Reclassification From Accumulated Other Comprehensive Loss (Detail) - Pension and Other Postretirement Benefits Plan Cost - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortization of pension and other postretirement benefits plan cost:
Net actuarial loss	[1]	$ 40.5	$ 31.9	$ 50.5
Net prior service credit	[1]	(26.9)	(25.8)	(19.7)
Curtailments and settlements	[1]	0.2	95.7	0.7
Reclassifications before tax		13.8	101.8	31.5
Income tax expense		4.9	39.3	11.7
Reclassifications, net of tax		$ 8.9	$ 62.5	$ 19.8

[1] These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense recognized in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Operations (see Note 11).

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Stock and Incentive Programs for Employees and Directors - Narrative (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) CompensationPlan shares	Dec. 31, 2014 USD ($) shares	Dec. 31, 2013 USD ($) shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 17.3	$ 17.7	$ 19.9
Share-based compensation expense, income tax benefit	6.7	6.9	7.7
Unrecognized share-based compensation cost	$ 19.3
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Number of active Share-based compensation plan | CompensationPlan	1
Number of terminated or expired share-based compensation plans | CompensationPlan	1
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Restricted Stock | After January Two Thousand Nine
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Restricted Stock | Between January 2008 And January 2009
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Restricted Stock | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Restricted Stock | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	4 years
Award term (in years)	10 years
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 0.6	0.9	1.5
Unrecognized share-based compensation cost	$ 0.1
Unrecognized compensation expense, weighted-average period of recognition	2 months 12 days
Stock options | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Stock options | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	4 years
Award term (in years)	10 years
Stock options | Maximum | After Retirement Date
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award term (in years)	5 years
Performance share units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 5.1	$ 3.5	2.5
Unrecognized share-based compensation cost	$ 6.7
Unrecognized compensation expense, weighted-average period of recognition	1 year 8 months 12 days
Equity instruments other than options, outstanding shares | shares	732,000	804,000
Performance share units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Performance share units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	4 years
Stock Compensation Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved and authorized (in shares) | shares	10,000,000
Shares authorized and available for grant under the 2012 PIP | shares	5,700,000
Restricted stock units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 11.6	$ 13.3	$ 15.9
Unrecognized share-based compensation cost	$ 12.5
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Equity instruments other than options, outstanding shares | shares	1,670,000	2,045,000
Restricted stock units | Liability Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity instruments other than options, outstanding shares | shares	86,372	86,372	124,599
Performance Share Unit Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term	3 years
Performance Share Unit Awards | 2015 Award
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount payable as a percentage of initial award, contingent upon maximum performance	150.00%
Performance Share Unit Awards | 2014 and 2013 Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount payable as a percentage of initial award, contingent upon maximum performance	100.00%

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Stock and Incentive Programs for Employees and Directors - Stock Options - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 17.3	$ 17.7	$ 19.9
Unrecognized share-based compensation cost	$ 19.3
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted	0	0
Intrinsic value of options exercised	$ 0.8	$ 1.1	0.7
Share-based compensation	0.6	0.9	1.5
Unrecognized share-based compensation cost	$ 0.1
Unrecognized compensation expense, weighted-average period of recognition	2 months 12 days
Cash received from option exercises	$ 1.8	1.6	2.2
Tax benefit realized for tax deduction from option exercises	0.3	0.4	0.3
Excess tax benefits shown as financing cash inflows	$ 0.2	$ 0.3	$ 0.2

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Stock and Incentive Programs for Employees and Directors - Schedule of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares Under Option
Outstanding at beginning of period	3,847
Exercised	(135)
Cancelled/forfeited/expired	(5)
Outstanding at end of period	3,707	3,847
Vested and expected to vest at end of period	3,701
Exercisable at end of period	1,455
Weighted Average Exercise Price
Outstanding at beginning of period	$ 19.43
Exercised	13.21
Cancelled/forfeited/expired	13.23
Outstanding at end of period	19.66	$ 19.43
Vested and expected to vest at end of period	19.67
Exercisable at end of period	$ 9.22
Weighted Average Remaining Contractual Term (years)
Outstanding	3 years 7 months 6 days	4 years 8 months 12 days
Vested and expected to vest at end of period	3 years 7 months 6 days
Exercisable at end of period	4 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 12.6
Outstanding at end of period	8.4	$ 12.6
Vested and expected to vest at end of period	8.4
Exercisable at end of period	$ 8.0

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Stock and Incentive Programs for Employees and Directors - Nonvested Restricted Stock Unit Awards (Detail) - Restricted stock units shares in Thousands	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Nonvested at beginning of period, Shares | shares	2,045
Granted, Shares | shares	701
Vested, Shares | shares	(1,010)
Forfeited, Shares | shares	(66)
Nonvested at end of period, Shares | shares	1,670
Nonvested at beginning of period, Weighted-Average Grant Date Fair Value | $ / shares	$ 12.54
Granted, Weighted-Average Grant Date Fair Value | $ / shares	17.14
Vested, Weighted-Average Grant Date Fair Value | $ / shares	13.71
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares	13.55
Nonvested at end of period, Weighted-Average Grant Date Fair Value | $ / shares	$ 13.72

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Stock and Incentive Programs for Employees and Directors - Restricted Stock Units - Narrative (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 17.3	$ 17.7	$ 19.9
Unrecognized share-based compensation cost	$ 19.3
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Restricted stock units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 11.6	13.3	15.9
Unrecognized share-based compensation cost	$ 12.5
Equity instruments other than options expected to vest, Shares	1.7
Equity instruments other than options expected to vest, weighted-average grant date fair value	$ 13.70
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Excess tax benefits shown as financing cash inflows	$ 2.4	$ 2.5	$ 2.1

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Stock and Incentive Programs for Employees and Directors - Schedule of Nonvested Performance Share Units Activity (Detail) - Performance share units - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Nonvested at beginning of period, Shares	804,000
Granted, Shares	418,000	319,000	485,000
Expired/forfeited, Shares	(5,000)
Vested, Shares	(485,000)		(485,000)
Nonvested at end of period, Shares	732,000	804,000
Nonvested at beginning of period, Weighted-Average Grant Date Fair Value	$ 11.87
Granted, Weighted-Average Grant Date Fair Value	16.73
Forfeited, Weighted-Average Grant Date Fair Value	16.73
Vested, Weighted-Average Grant Date Fair Value	8.85
Nonvested at end of period, Weighted-Average Grant Date Fair Value	$ 16.61	$ 11.87

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Stock and Incentive Programs for Employees and Directors - Performance Share Units - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 17.3	$ 17.7	$ 19.9
Unrecognized share-based compensation cost	$ 19.3
Unrecognized compensation expense, weighted-average period of recognition	1 year 9 months 18 days
Performance share units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance share unit awards granted to certain executive officers	418,000	319,000	485,000
Equity instruments other than options, payout range, minimum	209,000	154,500
Equity instruments other than options, payout range, maximum	627,000	319,000	485,000
Equity instruments other than options vested in period	485,000		485,000
Equity instruments other than options, percentage of expected payout	100.00%	100.00%	100.00%
Share-based compensation	$ 5.1	$ 3.5	$ 2.5
Unrecognized share-based compensation cost	$ 6.7
Unrecognized compensation expense, weighted-average period of recognition	1 year 8 months 12 days

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Preferred Stock - Narrative (Detail) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Preferred stock, authorized	2,000,000	2,000,000
Preferred stock, par value	$ 1.00	$ 1.00

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Segment Information - Narrative (Detail) - Sales Revenue Segment - Product Concentration Risk	12 Months Ended
	Dec. 31, 2015
Publishing and Retail Services
Segment Reporting Information [Line Items]
Percentage of net sales by segment	22.40%
Variable Print
Segment Reporting Information [Line Items]
Percentage of net sales by segment	33.40%
Strategic Services
Segment Reporting Information [Line Items]
Percentage of net sales by segment	23.80%
International
Segment Reporting Information [Line Items]
Percentage of net sales by segment	20.40%

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Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net Sales	$ 11,256.8	$ 11,603.4	$ 10,480.3
Income (Loss) from Operations	587.4	515.9	579.7
Assets of Operations	7,279.3	7,608.8	7,205.1
Depreciation and amortization	454.0	474.0	435.8
Capital Expenditures	207.6	223.6	216.6
Publishing and Retail Services
Segment Reporting Information [Line Items]
Net Sales	2,521.7	2,632.3	2,774.8
Variable Print
Segment Reporting Information [Line Items]
Net Sales	3,762.4	3,767.9	2,592.8
Strategic Services
Segment Reporting Information [Line Items]
Net Sales	2,677.9	2,607.5	2,453.0
International
Segment Reporting Information [Line Items]
Net Sales	2,294.8	2,595.7	2,659.7
Total Operating Segments
Segment Reporting Information [Line Items]
Total Sales	11,626.0	11,911.8	10,763.0
Income (Loss) from Operations	656.9	691.0	687.6
Assets of Operations	6,910.8	7,097.2	6,352.3
Depreciation and amortization	450.5	466.6	430.3
Capital Expenditures	188.7	205.8	206.8
Total Operating Segments | Publishing and Retail Services
Segment Reporting Information [Line Items]
Total Sales	2,556.3	2,646.1	2,777.7
Income (Loss) from Operations	77.3	86.1	109.6
Assets of Operations	1,334.4	1,215.7	1,369.6
Depreciation and amortization	148.3	145.1	166.0
Capital Expenditures	35.0	43.5	57.7
Total Operating Segments | Variable Print
Segment Reporting Information [Line Items]
Total Sales	3,817.6	3,829.7	2,650.7
Income (Loss) from Operations	250.7	240.8	197.9
Assets of Operations	2,496.2	2,649.5	1,567.1
Depreciation and amortization	152.6	157.2	103.4
Capital Expenditures	56.9	53.0	63.4
Total Operating Segments | Strategic Services
Segment Reporting Information [Line Items]
Total Sales	2,849.4	2,744.8	2,587.7
Income (Loss) from Operations	257.5	257.4	232.8
Assets of Operations	1,404.9	1,366.6	1,355.6
Depreciation and amortization	66.1	65.5	58.4
Capital Expenditures	49.0	41.0	34.9
Total Operating Segments | International
Segment Reporting Information [Line Items]
Total Sales	2,402.7	2,691.2	2,746.9
Income (Loss) from Operations	71.4	106.7	147.3
Assets of Operations	1,675.3	1,865.4	2,060.0
Depreciation and amortization	83.5	98.8	102.5
Capital Expenditures	47.8	68.3	50.8
Intersegment Sales
Segment Reporting Information [Line Items]
Net Sales	(369.2)	(308.4)	(282.7)
Intersegment Sales | Publishing and Retail Services
Segment Reporting Information [Line Items]
Net Sales	(34.6)	(13.8)	(2.9)
Intersegment Sales | Variable Print
Segment Reporting Information [Line Items]
Net Sales	(55.2)	(61.8)	(57.9)
Intersegment Sales | Strategic Services
Segment Reporting Information [Line Items]
Net Sales	(171.5)	(137.3)	(134.7)
Intersegment Sales | International
Segment Reporting Information [Line Items]
Net Sales	(107.9)	(95.5)	(87.2)
Corporate
Segment Reporting Information [Line Items]
Income (Loss) from Operations	(69.5)	(175.1)	(107.9)
Assets of Operations	368.5	511.6	852.8
Depreciation and amortization	3.5	7.4	5.5
Capital Expenditures	$ 18.9	$ 17.8	$ 9.8

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Segment Information - Schedule of Corporate Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 389.6	$ 527.9	$ 1,028.4	$ 430.7
Deferred income tax assets, net of valuation allowances	597.3	670.5
Property, plant and equipment, net	1,448.1	1,515.5
LIFO reserve	(86.5)	(93.6)
Corporate
Segment Reporting Information [Line Items]
Cash and cash equivalents	(45.8)	94.6	494.9
Deferred income tax assets, net of valuation allowances	169.9	152.0	39.2
Software, net	98.8	82.1	71.1
Deferred compensation plan assets and Company owned life insurance assets	92.1	86.0	79.5
Property, plant and equipment, net	61.6	61.2	61.7
LIFO reserve	$ (86.5)	$ (93.6)	$ (92.0)

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Net Sales and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales		$ 11,256.8	$ 11,603.4	$ 10,480.3
Long-lived assets	[1]	1,996.0	2,135.7	1,924.4
U.S.
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales		8,937.7	8,974.2	7,866.2
Long-lived assets	[1]	1,601.8	1,671.1	1,435.7
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales		905.0	983.1	975.2
Long-lived assets	[1]	141.0	154.0	160.7
Asia
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales		832.3	860.1	841.5
Long-lived assets	[1]	112.1	129.0	152.2
Other
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales		581.8	786.0	797.4
Long-lived assets	[1]	$ 141.1	$ 181.6	$ 175.8

[1] Includes net property, plant and equipment, noncurrent deferred tax assets and other noncurrent assets.

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Product and Services Net Sales (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Entity Wide Information Revenue From External Customer [Line Items]
Total products	$ 9,323.6	$ 9,715.2	$ 8,765.8
Total services	1,933.2	1,888.2	1,714.5
Total net sales	11,256.8	11,603.4	10,480.3
Magazines, catalogs and retail inserts
Entity Wide Information Revenue From External Customer [Line Items]
Total products	1,950.5	2,223.5	2,370.0
Commercial and Digital Print
Entity Wide Information Revenue From External Customer [Line Items]
Total products	1,885.0	1,851.7	966.4
Books
Entity Wide Information Revenue From External Customer [Line Items]
Total products	1,237.9	1,149.4	1,202.2
Financial print related services
Entity Wide Information Revenue From External Customer [Line Items]
Total products	681.7	722.2	775.1
Total services	309.0	292.3	230.2
Statements
Entity Wide Information Revenue From External Customer [Line Items]
Total products	607.5	641.3	666.0
Office products
Entity Wide Information Revenue From External Customer [Line Items]
Total products	560.2	496.3	238.9
Direct Mail
Entity Wide Information Revenue From External Customer [Line Items]
Total products	524.4	613.2	571.7
Labels
Entity Wide Information Revenue From External Customer [Line Items]
Total products	500.6	523.3	488.1
Packaging and related products
Entity Wide Information Revenue From External Customer [Line Items]
Total products	489.3	484.0	464.3
Forms
Entity Wide Information Revenue From External Customer [Line Items]
Total products	358.1	462.1	491.9
Global Turnkey Solutions
Entity Wide Information Revenue From External Customer [Line Items]
Total products	345.8	341.7	305.4
Directories
Entity Wide Information Revenue From External Customer [Line Items]
Total products	182.6	206.5	225.8
Logistics services
Entity Wide Information Revenue From External Customer [Line Items]
Total services	1,270.4	1,211.3	1,105.9
Business process outsourcing
Entity Wide Information Revenue From External Customer [Line Items]
Total services	193.4	195.8	188.8
Digital And Creative Solutions
Entity Wide Information Revenue From External Customer [Line Items]
Total services	$ 160.4	$ 188.8	$ 189.6

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Venezuela Currency Remeasurement - Narrative (Detail) $ in Millions	12 Months Ended			36 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($) VEF / $	Dec. 31, 2013 USD ($)	Dec. 31, 2015	Dec. 31, 2014 VEF / $	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Apr. 29, 2015	Mar. 31, 2015 VEF / $	Mar. 31, 2014 VEF / $
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Gain (loss) on foreign currency transaction and translation, pre-tax	$ (30.3)	$ (18.4)	$ (3.2)
Devaluation of Venezuelan Bolivar
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Maximum three year cumulative inflation using the blended Consumer Price Index and National Consumer Price Index				100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Foreign currency exchange rate | VEF / $												6.3
Devaluation of Venezuelan Bolivar | SICAD 1
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate | VEF / $		12.0			12.0
Devaluation of Venezuelan Bolivar | SICAD 2
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate | VEF / $		50.0			50.0
Devaluation of Venezuelan Bolivar | SICAD 1 and 2
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Gain (loss) on foreign currency transaction and translation, pre-tax		$ 18.4
Gain (loss) on foreign currency transaction and translation, after tax		13.8
Devaluation of Venezuelan Bolivar | SICAD 1 and 2 | Noncontrolling Interest
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Gain (loss) on foreign currency transaction and translation, pre-tax		$ 5.6
Devaluation of Venezuelan Bolivar | SIMADI
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate | VEF / $											193
Gain (loss) on foreign currency transaction and translation, pre-tax	30.3
Gain (loss) on foreign currency transaction and translation, after tax	27.5
Devaluation of Venezuelan Bolivar | SIMADI | Noncontrolling Interest
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Gain (loss) on foreign currency transaction and translation, pre-tax	$ 10.5
International | 2015 Disposition
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Sale of equity interest date	Apr. 29, 2015
International | 2015 Disposition | Venezuelan Operating Entity
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items]
Joint venture, ownership percentage	50.10%			50.10%						50.10%

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New Accounting Pronouncements - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Deferred tax assets non-current	$ 178.2	$ 234.1
Unamortized debt issuance cost	25.6	30.5
Accounting Standards Update Two Zero One Five Hyphen One Seven
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Deferred tax assets non-current	38.5
Prepaid Expenses and Other Current Assets | Accounting Standards Update Two Zero One Five Hyphen One Seven
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Deferred tax assets, current		41.6
Long Term Debt | Accounting Standards Update 2015-03
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Unamortized debt issuance cost	$ 25.6	$ 30.5