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Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information

13. Segment Information

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

Variable Print

This 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.

Strategic Services

This segment includes the Company’s logistics services, print management offerings and digital and creative solutions.

International

This segment includes the Company’s non-U.S. printing operations in Asia, Latin America, Canada and Europe. This segment’s primary product and service offerings include packaging, books, catalogs, magazines, retail inserts, statement printing, commercial and digital print, forms, labels, logistics services, directories, digital and creative solutions, and direct mail. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management offerings through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia.

Corporate

Corporate consists of unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefits plan expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages the Company’s cash pooling structures, which enable participating international locations to draw on the Company’s overseas cash resources to meet local liquidity needs.

Information by Segment

The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

Depreciation

 

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

and

 

 

Capital

 

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Three Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

$

739.3

 

 

$

(4.3

)

 

$

735.0

 

 

$

31.1

 

 

$

28.5

 

 

$

9.7

 

Strategic Services

 

 

443.7

 

 

 

(37.7

)

 

 

406.0

 

 

 

4.0

 

 

 

4.6

 

 

 

3.0

 

International

 

 

515.2

 

 

 

(10.2

)

 

 

505.0

 

 

 

16.3

 

 

 

13.5

 

 

 

11.9

 

Total operating segments

 

 

1,698.2

 

 

 

(52.2

)

 

 

1,646.0

 

 

 

51.4

 

 

 

46.6

 

 

 

24.6

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

(12.8

)

 

 

0.9

 

 

 

3.5

 

Total operations

 

$

1,698.2

 

 

$

(52.2

)

 

$

1,646.0

 

 

$

38.6

 

 

$

47.5

 

 

$

28.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

Depreciation

 

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

and

 

 

Capital

 

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Print

 

$

745.6

 

 

$

(4.2

)

 

$

741.4

 

 

$

40.1

 

 

$

30.1

 

 

$

17.0

 

Strategic Services

 

 

437.7

 

 

 

(37.6

)

 

 

400.1

 

 

 

8.9

 

 

 

5.1

 

 

 

9.2

 

International

 

 

502.8

 

 

 

(11.7

)

 

 

491.1

 

 

 

28.8

 

 

 

14.9

 

 

 

6.9

 

Total operating segments

 

 

1,686.1

 

 

 

(53.5

)

 

 

1,632.6

 

 

 

77.8

 

 

 

50.1

 

 

 

33.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

(53.1

)

 

 

(0.2

)

 

 

6.7

 

Total operations

 

$

1,686.1

 

 

$

(53.5

)

 

$

1,632.6

 

 

$

24.7

 

 

$

49.9

 

 

$

39.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Six Months Ended June 30, 2017

 

Variable Print

 

$

1,520.2

 

 

$

(8.1

)

 

$

1,512.1

 

 

$

74.9

 

 

$

1,507.2

 

 

$

57.7

 

 

$

15.5

 

Strategic Services

 

 

910.9

 

 

 

(80.3

)

 

 

830.6

 

 

 

7.8

 

 

 

556.4

 

 

 

8.8

 

 

 

6.2

 

International

 

 

998.9

 

 

 

(19.3

)

 

 

979.6

 

 

 

33.2

 

 

 

1,442.8

 

 

 

27.4

 

 

 

22.4

 

Total operating segments

 

 

3,430.0

 

 

 

(107.7

)

 

 

3,322.3

 

 

 

115.9

 

 

 

3,506.4

 

 

 

93.9

 

 

 

44.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

(29.9

)

 

 

325.4

 

 

 

2.2

 

 

 

10.1

 

Total operations

 

$

3,430.0

 

 

$

(107.7

)

 

$

3,322.3

 

 

$

86.0

 

 

$

3,831.8

 

 

$

96.1

 

 

$

54.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Six Months Ended June 30, 2016

 

Variable Print

 

$

1,529.5

 

 

$

(8.0

)

 

$

1,521.5

 

 

$

93.9

 

 

$

2,086.6

 

 

$

60.0

 

 

$

30.5

 

Strategic Services

 

 

857.0

 

 

 

(72.4

)

 

 

784.6

 

 

 

12.0

 

 

 

468.6

 

 

 

9.7

 

 

 

13.1

 

International

 

 

993.9

 

 

 

(21.8

)

 

 

972.1

 

 

 

65.8

 

 

 

1,315.0

 

 

 

31.9

 

 

 

17.5

 

Total operating segments

 

 

3,380.4

 

 

 

(102.2

)

 

 

3,278.2

 

 

 

171.7

 

 

 

3,870.2

 

 

 

101.6

 

 

 

61.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

(89.4

)

 

 

327.4

 

 

 

0.9

 

 

 

9.1

 

Total operations

 

$

3,380.4

 

 

$

(102.2

)

 

$

3,278.2

 

 

$

82.3

 

 

$

4,197.6

 

 

$

102.5

 

 

$

70.2

 

Restructuring, impairment and other charges by segment for the three and six months ended June 30, 2017 are described in Note 7, Restructuring, Impairment and Other Charges.