Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Note 20. Segment Information

During the fourth quarter of 2016, management realigned the Company’s reportable segments to reflect the impact of the spinoff transactions and to reflect the management reporting structure of the remaining business and the manner in which the chief operating decision maker regularly assesses information for decision-making purposes. All prior year amounts have been reclassified to conform to the Company’s current reporting structure.

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

Variable Print

The Variable Print segment includes the Company’s U.S. short-run and transactional printing operations. This segment’s primary product offerings include commercial and digital print, direct mail, labels, statement printing, forms and packaging. The Variable Print segment accounted for 45.6% of the Company’s consolidated net sales in 2016.

Strategic Services

The Strategic Services segment includes the Company’s logistics services, print management offerings and digital and creative solutions. The Strategic Services segment accounted for 25.1% of the Company’s consolidated net sales in 2016.

International

The International segment includes the Company’s non-U.S. printing operations in Asia, 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 business 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 29.3% of the Company’s consolidated net sales in 2016.

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, 2016
Variable Print	$	3,155.0	$	(9.6	)	$	3,145.4	$	(349.5	)	$	1,619.4	$	121.5	$	56.9
Strategic Services		1,883.9		(157.0	)		1,726.9		26.8			603.9		19.4		12.7
International		2,066.0		(42.6	)		2,023.4		150.7			1,414.2		61.0		32.8
Total operating segments		7,104.9		(209.2	)		6,895.7		(172.0	)		3,637.5		201.9		102.4
Corporate		—		—			—		(128.6	)		647.2		2.3		20.7
Total operations	$	7,104.9	$	(209.2	)	$	6,895.7	$	(300.6	)	$	4,284.7	$	204.2	$	123.1
Year ended December 31, 2015
Variable Print	$	3,224.1	$	(9.2	)	$	3,214.9	$	208.2		$	2,150.8	$	134.1	$	52.3
Strategic Services		1,752.0		(147.4	)		1,604.6		39.5			475.2		19.5		19.0
International		2,158.4		(40.6	)		2,117.8		86.7			1,438.8		75.7		45.4
Total operating segments		7,134.5		(197.2	)		6,937.3		334.4			4,064.8		229.3		116.7
Corporate		—		—			—		(97.1	)		226.2		3.2		16.9
Total operations	$	7,134.5	$	(197.2	)	$	6,937.3	$	237.3		$	4,291.0	$	232.5	$	133.6
Year ended December 31, 2014
Variable Print	$	3,281.1	$	(12.6	)	$	3,268.5	$	184.8		$	2,255.7	$	139.7	$	43.8
Strategic Services		1,674.2		(111.2	)		1,563.0		50.9			471.9		19.4		18.5
International		2,371.6		(30.4	)		2,341.2		113.8			1,591.1		87.7		60.8
Total operating segments		7,326.9		(154.2	)		7,172.7		349.5			4,318.7		246.8		123.1
Corporate		—		—			—		(135.6	)		432.4		7.8		10.9
Total operations	$	7,326.9	$	(154.2	)	$	7,172.7	$	213.9		$	4,751.1	$	254.6	$	134.0

Corporate assets primarily consisted of the following items at December 31, 2016, 2015 and 2014:

	2016		2015			2014
Cash and cash equivalents	$	19.3	$	(45.9	)	$	94.1
Deferred income tax assets, net of valuation allowances		67.5		41.8			79.6
Software, net		43.0		48.5			46.0
Deferred compensation plan assets and Company owned life insurance assets		75.3		77.4			71.7
Investment in LSC and Donnelley Financial		328.7		—			—
Property, plant and equipment, net		30.2		41.6			43.0
Other		83.2		62.8			98.0
Total Corporate assets	$	647.2	$	226.2		$	432.4

Restructuring, impairment and other charges by segment for 2016, 2015 and 2014 are described in Note 4, Restructuring, Impairments and Other Charges.