EX-99.2 3 rrd-ex992_7.htm EX-99.2 rrd-ex992_7.htm

Exhibit 99.2

 

R.R. Donnelley & Sons Company

 

Reconciliations of GAAP Net Earnings to Non-GAAP Adjusted EBITDA from Continuing Operations

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

Three Months Ended June 30, 2015

 

 

Three Months Ended September 30, 2015

 

 

Three Months Ended December 31, 2015

 

 

Twelve Months Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net earnings attributable to RR Donnelley common stockholders

 

$

22.3

 

 

$

43.5

 

 

$

14.3

 

 

$

71.0

 

 

$

151.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: earnings from discontinued operations, net of tax (a)

 

 

(8.7

)

 

 

(51.5

)

 

 

(22.5

)

 

 

(87.4

)

 

 

(170.1

)

(Loss) income attributable to noncontrolling interests

 

 

(10.4

)

 

 

0.1

 

 

 

(2.7

)

 

 

0.3

 

 

 

(12.7

)

Income tax (benefit) expense

 

 

(36.7

)

 

 

4.4

 

 

 

1.0

 

 

 

52.3

 

 

 

21.0

 

Interest expense - net

 

 

51.2

 

 

 

51.3

 

 

 

51.0

 

 

 

50.6

 

 

 

204.1

 

Investment and other expense - net

 

 

28.2

 

 

 

12.1

 

 

 

3.0

 

 

 

0.6

 

 

 

43.9

 

Depreciation and amortization

 

 

59.8

 

 

 

59.4

 

 

 

57.4

 

 

 

55.9

 

 

 

232.5

 

Restructuring, impairment and other charges - net (b)

 

 

13.4

 

 

 

9.6

 

 

 

26.7

 

 

 

13.0

 

 

 

62.7

 

Acquisition-related expenses (c)

 

 

—

 

 

 

0.2

 

 

 

0.1

 

 

 

0.2

 

 

 

0.5

 

Total Non-GAAP adjustments

 

 

96.8

 

 

 

85.6

 

 

 

114.0

 

 

 

85.5

 

 

 

381.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted EBITDA from continuing operations (g)

 

$

119.1

 

 

$

129.1

 

 

$

128.3

 

 

$

156.5

 

 

$

533.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,737.0

 

 

$

1,679.4

 

 

$

1,711.6

 

 

$

1,809.3

 

 

$

6,937.3

 

Non-GAAP adjusted EBITDA margin % (g)

 

 

6.9

%

 

 

7.7

%

 

 

7.5

%

 

 

8.6

%

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

 

 

 

 

 

 

 

R.R. Donnelley & Sons Company

Reconciliations of GAAP Net Earnings to Non-GAAP Adjusted EBITDA from Continuing Operations

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

Three Months Ended June 30, 2016

 

 

Three Months Ended September 30, 2016

 

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net earnings (loss) attributable to RR Donnelley common stockholders

 

$

39.8

 

 

$

(14.5

)

 

$

(7.1

)

 

$

18.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (earnings) loss from discontinued operations, net of tax (a)

 

 

(36.2

)

 

 

(8.7

)

 

 

29.1

 

 

 

(15.8

)

 

Income attributable to noncontrolling interests

 

 

0.3

 

 

 

0.2

 

 

 

0.3

 

 

 

0.8

 

 

Income tax expense (benefit)

 

 

3.4

 

 

 

(4.4

)

 

 

13.9

 

 

 

12.9

 

 

Interest expense - net

 

 

50.4

 

 

 

51.4

 

 

 

48.8

 

 

 

150.6

 

 

Investment and other (income) expense - net

 

 

(0.1

)

 

 

0.7

 

 

 

(1.0

)

 

 

(0.4

)

 

Depreciation and amortization

 

 

52.6

 

 

 

49.9

 

 

 

51.0

 

 

 

153.5

 

 

Restructuring, impairment and other charges - net (b)

 

 

5.3

 

 

 

8.2

 

 

 

10.8

 

 

 

24.3

 

 

Acquisition-related expenses (c)

 

 

0.6

 

 

 

1.4

 

 

 

0.7

 

 

 

2.7

 

 

Pension settlement charges (d)

 

 

—

 

 

 

20.4

 

 

 

0.3

 

 

 

20.7

 

 

Net (gain) loss on dispositions of businesses (e)

 

 

(12.3

)

 

 

—

 

 

 

0.3

 

 

 

(12.0

)

 

OPEB curtailment gains(f)

 

 

—

 

 

 

—

 

 

 

(19.7

)

 

 

(19.7

)

 

Total Non-GAAP adjustments

 

 

64.0

 

 

 

119.1

 

 

 

134.5

 

 

 

317.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted EBITDA from continuing operations (g)

 

$

103.8

 

 

$

104.6

 

 

$

127.4

 

 

$

335.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,645.6

 

 

$

1,632.6

 

 

$

1,741.2

 

 

$

5,019.4

 

 

Non-GAAP adjusted EBITDA margin % (g)

 

 

6.3

%

 

 

6.4

%

 

 

7.3

%

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended March 31, 2015

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

818.5

 

$

403.6

 

$

514.9

 

$

—

 

$

1,737.0

 

Operating expense

 

761.1

 

 

399.3

 

 

501.3

 

 

29.4

 

 

1,691.1

 

Income (loss) from operations

 

57.4

 

 

4.3

 

 

13.6

 

 

(29.4

)

 

45.9

 

Operating margin %

 

7.0

%

 

1.1

%

 

2.6

%

nm

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

3.8

 

 

1.7

 

 

7.4

 

 

0.5

 

 

13.4

 

   Total Non-GAAP adjustments

 

3.8

 

 

1.7

 

 

7.4

 

 

0.5

 

 

13.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

61.2

 

$

6.0

 

$

21.0

 

$

(28.9

)

$

59.3

 

Non-GAAP operating margin % (g)

 

7.5

%

 

1.5

%

 

4.1

%

nm

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

34.0

 

 

5.2

 

 

19.6

 

 

1.0

 

 

59.8

 

Non-GAAP Adjusted EBITDA (g)

$

95.2

 

$

11.2

 

$

40.6

 

$

(27.9

)

$

119.1

 

Non-GAAP Adjusted EBITDA margin % (g)

 

11.6

%

 

2.8

%

 

7.9

%

nm

 

 

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended June 30, 2015

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

763.3

 

$

393.7

 

$

522.4

 

$

—

 

$

1,679.4

 

Operating expense

 

719.7

 

 

382.6

 

 

496.4

 

 

20.8

 

 

1,619.5

 

Income (loss) from operations

 

43.6

 

 

11.1

 

 

26.0

 

 

(20.8

)

 

59.9

 

Operating margin %

 

5.7

%

 

2.8

%

 

5.0

%

nm

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

3.4

 

 

1.6

 

 

2.7

 

 

1.9

 

 

9.6

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

 

0.2

 

 

0.2

 

   Total Non-GAAP adjustments

 

3.4

 

 

1.6

 

 

2.7

 

 

2.1

 

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

47.0

 

$

12.7

 

$

28.7

 

$

(18.7

)

$

69.7

 

Non-GAAP operating margin % (g)

 

6.2

%

 

3.2

%

 

5.5

%

nm

 

 

4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

33.8

 

 

5.1

 

 

19.5

 

 

1.0

 

 

59.4

 

Non-GAAP Adjusted EBITDA (g)

$

80.8

 

$

17.8

 

$

48.2

 

$

(17.7

)

$

129.1

 

Non-GAAP Adjusted EBITDA margin % (g)

 

10.6

%

 

4.5

%

 

9.2

%

nm

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended September 30, 2015

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

793.1

 

$

390.7

 

$

527.8

 

$

—

 

$

1,711.6

 

Operating expense

 

750.2

 

 

378.4

 

 

520.5

 

 

18.4

 

 

1,667.5

 

Income (loss) from operations

 

42.9

 

 

12.3

 

 

7.3

 

 

(18.4

)

 

44.1

 

Operating margin %

 

5.4

%

 

3.1

%

 

1.4

%

nm

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

1.9

 

 

2.0

 

 

21.5

 

 

1.3

 

 

26.7

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

 

0.1

 

 

0.1

 

   Total Non-GAAP adjustments

 

1.9

 

 

2.0

 

 

21.5

 

 

1.4

 

 

26.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

44.8

 

$

14.3

 

$

28.8

 

$

(17.0

)

$

70.9

 

Non-GAAP operating margin % (g)

 

5.6

%

 

3.7

%

 

5.5

%

nm

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

33.5

 

 

4.6

 

 

18.5

 

 

0.8

 

 

57.4

 

Non-GAAP Adjusted EBITDA (g)

$

78.3

 

$

18.9

 

$

47.3

 

$

(16.2

)

$

128.3

 

Non-GAAP Adjusted EBITDA margin % (g)

 

9.9

%

 

4.8

%

 

9.0

%

nm

 

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended December 31, 2015

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

840.0

 

$

416.6

 

$

552.7

 

$

—

 

$

1,809.3

 

Operating expense

 

775.7

 

 

403.7

 

 

516.7

 

 

25.8

 

 

1,721.9

 

Income (loss) from operations

 

64.3

 

 

12.9

 

 

36.0

 

 

(25.8

)

 

87.4

 

Operating margin %

 

7.7

%

 

3.1

%

 

6.5

%

nm

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

—

 

 

0.5

 

 

12.0

 

 

0.5

 

 

13.0

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

 

0.2

 

 

0.2

 

   Total Non-GAAP adjustments

 

—

 

 

0.5

 

 

12.0

 

 

0.7

 

 

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

64.3

 

$

13.4

 

$

48.0

 

$

(25.1

)

$

100.6

 

Non-GAAP operating margin % (g)

 

7.7

%

 

3.2

%

 

8.7

%

nm

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

32.8

 

 

4.6

 

 

18.1

 

 

0.4

 

 

55.9

 

Non-GAAP Adjusted EBITDA (g)

$

97.1

 

$

18.0

 

$

66.1

 

$

(24.7

)

$

156.5

 

Non-GAAP Adjusted EBITDA margin % (g)

 

11.6

%

 

4.3

%

 

12.0

%

nm

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended March 31, 2016

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

780.1

 

$

384.5

 

$

481.0

 

$

—

 

$

1,645.6

 

Operating expense

 

726.3

 

 

381.4

 

 

445.1

 

 

35.2

 

 

1,588.0

 

Income (loss) from operations

 

53.8

 

 

3.1

 

 

35.9

 

 

(35.2

)

 

57.6

 

Operating margin %

 

6.9

%

 

0.8

%

 

7.5

%

nm

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

1.3

 

 

0.4

 

 

1.9

 

 

1.7

 

 

5.3

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

$

0.6

 

$

0.6

 

Net gain on dispositions of businesses (e)

 

—

 

 

—

 

 

(12.3

)

 

—

 

 

(12.3

)

   Total Non-GAAP adjustments

 

1.3

 

 

0.4

 

 

(10.4

)

 

2.3

 

 

(6.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

55.1

 

$

3.5

 

$

25.5

 

$

(32.9

)

$

51.2

 

Non-GAAP operating margin % (g)

 

7.1

%

 

0.9

%

 

5.3

%

nm

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

29.9

 

 

4.6

 

 

17.0

 

 

1.1

 

 

52.6

 

Non-GAAP Adjusted EBITDA (g)

$

85.0

 

$

8.1

 

$

42.5

 

$

(31.8

)

$

103.8

 

Non-GAAP Adjusted EBITDA margin % (g)

 

10.9

%

 

2.1

%

 

8.8

%

nm

 

 

6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended June 30, 2016

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

741.4

 

$

400.1

 

$

491.1

 

$

—

 

$

1,632.6

 

Operating expense

 

701.3

 

 

391.2

 

 

463.6

 

 

51.8

 

 

1,607.9

 

Income (loss) from operations

 

40.1

 

 

8.9

 

 

27.5

 

 

(51.8

)

 

24.7

 

Operating margin %

 

5.4

%

 

2.2

%

 

5.6

%

nm

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

1.5

 

 

0.3

 

 

3.2

 

 

3.2

 

 

8.2

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

 

1.4

 

 

1.4

 

Pension settlement charges (d)

 

—

 

 

—

 

 

—

 

 

20.4

 

 

20.4

 

   Total Non-GAAP adjustments

 

1.5

 

 

0.3

 

 

3.2

 

 

25.0

 

 

30.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

41.6

 

$

9.2

 

$

30.7

 

$

(26.8

)

$

54.7

 

Non-GAAP operating margin % (g)

 

5.6

%

 

2.3

%

 

6.3

%

nm

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

30.1

 

 

5.1

 

 

14.9

 

 

(0.2

)

 

49.9

 

Non-GAAP Adjusted EBITDA (g)

$

71.7

 

$

14.3

 

$

45.6

 

$

(27.0

)

$

104.6

 

Non-GAAP Adjusted EBITDA margin % (g)

 

9.7

%

 

3.6

%

 

9.3

%

nm

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

R. R. Donnelley & Sons Company

 

Unaudited Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation

 

For the Three Months Ended September 30, 2016

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

Strategic Services

 

International

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

790.3

 

$

445.0

 

$

505.9

 

$

—

 

$

1,741.2

 

Operating expense

 

740.2

 

 

431.7

 

 

469.8

 

 

15.5

 

 

1,657.2

 

Income (loss) from operations

 

50.1

 

 

13.3

 

 

36.1

 

 

(15.5

)

 

84.0

 

Operating margin %

 

6.3

%

 

3.0

%

 

7.1

%

nm

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other charges - net (b)

 

1.9

 

 

1.3

 

 

1.1

 

 

6.5

 

 

10.8

 

Acquisition-related expenses (c)

 

—

 

 

—

 

 

—

 

 

0.7

 

 

0.7

 

Pension settlement charges (d)

 

—

 

 

—

 

 

—

 

 

0.3

 

 

0.3

 

OPEB curtailment gains (f)

 

—

 

 

—

 

 

(0.1

)

 

(19.6

)

 

(19.7

)

Net gain on dispositions of businesses (e)

 

—

 

 

—

 

 

(0.3

)

 

0.6

 

 

0.3

 

   Total Non-GAAP adjustments

 

1.9

 

 

1.3

 

 

0.7

 

 

(11.5

)

 

(7.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations (g)

$

52.0

 

$

14.6

 

$

36.8

 

$

(27.0

)

$

76.4

 

Non-GAAP operating margin % (g)

 

6.6

%

 

3.3

%

 

7.3

%

nm

 

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

30.5

 

 

4.2

 

 

14.7

 

 

1.6

 

 

51.0

 

Non-GAAP Adjusted EBITDA (g)

$

82.5

 

$

18.8

 

$

51.5

 

$

(25.4

)

$

127.4

 

Non-GAAP Adjusted EBITDA margin % (g)

 

10.4

%

 

4.2

%

 

10.2

%

nm

 

 

7.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited non-GAAP financial information.

 

 

 

 

 

R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES

Notes to Unaudited Non-GAAP Financial Information

 

(a)

Reflects the net earnings directly associated with the discontinued operations of the Donnelley Financial and LSC businesses.

 

(b)

Restructuring, impairment and other charges - net: included charges for employee termination costs, lease termination and other restructuring costs, multi-employer pension plan withdrawal obligations unrelated to facility closures, and net impairment charges of long-lived assets. These charges also included the impairment of goodwill and other intangible assets.

 

(c)

Acquisition-related expenses: included charges related to legal, accounting and other expenses associated with contemplated or completed acquisitions.

 

(d)

Pension settlement charges: included charges related to lump-sum pension settlement payments.

 

(e)

Net gain on dispositions of businesses: included a net gain on the sale of entities.

 

(f)

Other postretirement benefit plan obligation (OPEB) curtailment gains: included a gain as a result of the curtailments of the Company’s OPEB plans.

 

(g)

The information contained in this line is a non-GAAP measure and thus is not calculated in accordance with GAAP. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance. Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to these indicators. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.