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Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment and Geographic Area Information

Note 17. Segment and Geographic Area Information

During the first quarter of 2018, we realigned our reportable segments to reflect changes in our global operating structure and the manner in which the chief operating decision maker assesses information for decision-making purposes. All prior year amounts have been reclassified to conform to our current reporting structure.

Our segments and their product and service offerings are summarized below:

Business Services

Business Services provides customized solutions at scale to help clients inform, service and transact with their customers. The segment’s primary product and service offerings include commercial print, logistics, statement printing, labels, packaging, supply chain management, forms and business process outsourcing. This segment also includes all of our operations in Asia, Europe, Canada and Latin America.

Marketing Solutions

Marketing Solutions leverages an integrated portfolio of data analytics, creative services and multichannel execution to deliver comprehensive, end-to-end solutions. The segment’s primary product and service offerings include direct marketing, in-store marketing, digital print, kitting, fulfillment, digital and creative solutions and list services.

Corporate

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

Information by Segment

We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our 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, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

$

5,720.4

 

 

$

(101.3

)

 

$

5,619.1

 

 

$

242.3

 

 

$

2,764.5

 

 

$

128.4

 

 

$

69.4

 

Marketing Solutions

 

1,218.6

 

 

 

(37.5

)

 

 

1,181.1

 

 

 

54.6

 

 

 

674.6

 

 

 

47.4

 

 

 

11.6

 

Total operating segments

 

6,939.0

 

 

 

(138.8

)

 

 

6,800.2

 

 

 

296.9

 

 

 

3,439.1

 

 

 

175.8

 

 

 

81.0

 

Corporate

 

—

 

 

 

—

 

 

 

—

 

 

 

(88.3

)

 

 

201.7

 

 

 

5.6

 

 

 

23.4

 

Total operations

$

6,939.0

 

 

$

(138.8

)

 

$

6,800.2

 

 

$

208.6

 

 

$

3,640.8

 

 

$

181.4

 

 

$

104.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

$

5,890.4

 

 

$

(127.7

)

 

$

5,762.7

 

 

$

248.6

 

 

$

2,989.5

 

 

$

139.9

 

 

$

70.3

 

Marketing Solutions

 

1,215.7

 

 

 

(38.8

)

 

 

1,176.9

 

 

 

30.8

 

 

 

717.0

 

 

 

47.4

 

 

 

14.6

 

Total operating segments

 

7,106.1

 

 

 

(166.5

)

 

 

6,939.6

 

 

 

279.4

 

 

 

3,706.5

 

 

 

187.3

 

 

 

84.9

 

Corporate

 

—

 

 

 

—

 

 

 

—

 

 

 

(68.0

)

 

 

198.0

 

 

 

4.1

 

 

 

23.6

 

Total operations

$

7,106.1

 

 

$

(166.5

)

 

$

6,939.6

 

 

$

211.4

 

 

$

3,904.5

 

 

$

191.4

 

 

$

108.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

$

5,810.0

 

 

$

(128.9

)

 

$

5,681.1

 

 

$

(73.8

)

 

$

2,874.4

 

 

$

153.6

 

 

$

63.2

 

Marketing Solutions

 

1,185.7

 

 

 

(33.8

)

 

 

1,151.9

 

 

 

(99.4

)

 

 

747.2

 

 

 

48.3

 

 

 

39.2

 

Total operating segments

 

6,995.7

 

 

 

(162.7

)

 

 

6,833.0

 

 

 

(173.2

)

 

 

3,621.6

 

 

 

201.9

 

 

 

102.4

 

Corporate

 

—

 

 

 

—

 

 

 

—

 

 

 

(151.7

)

 

 

647.2

 

 

 

2.3

 

 

 

20.7

 

Total operations

$

6,995.7

 

 

$

(162.7

)

 

$

6,833.0

 

 

$

(324.9

)

 

$

4,268.8

 

 

$

204.2

 

 

$

123.1

 

 

Corporate assets consisted of the following items at December 31, 2018, 2017 and 2016:

 

 

2018

 

 

2017

 

 

2016

 

Cash and cash equivalents

$

(31.8

)

 

$

(37.5

)

 

$

19.3

 

Deferred income tax assets, net of valuation allowances

 

37.1

 

 

 

36.7

 

 

 

67.5

 

Software, net

 

49.0

 

 

 

41.6

 

 

 

43.0

 

Deferred compensation plan and Company owned life insurance assets

 

89.3

 

 

 

88.6

 

 

 

75.3

 

Investment in LSC and Donnelley Financial

 

—

 

 

 

—

 

 

 

328.7

 

Property, plant and equipment, net

 

32.3

 

 

 

29.6

 

 

 

30.2

 

Other

 

25.8

 

 

 

39.0

 

 

 

83.2

 

Total Corporate assets

$

201.7

 

 

$

198.0

 

 

$

647.2

 

 

Net restructuring, impairment and other charges by segment for the years ended December 31, 2018, 2017 and 2016 are described in Note 5, Restructuring, Impairment and Other Charges.

Information by Geographic Area

The following table presents net sales by geographic region for the years ended December 31, 2018, 2017 and 2016. Net sales by geographic region are based upon the sales location.

 

 

2018

 

 

2017

 

 

2016

 

U.S.

$

4,990.4

 

 

$

5,233.0

 

 

$

5,250.3

 

Asia

 

968.5

 

 

 

857.3

 

 

 

703.5

 

Europe

 

485.9

 

 

 

455.0

 

 

 

482.8

 

Other

 

355.4

 

 

 

394.3

 

 

 

396.4

 

Consolidated net sales

$

6,800.2

 

 

$

6,939.6

 

 

$

6,833.0

 

 

The following table presents long-lived assets by geographic region at December 31, 2018, 2017 and 2016. Long-lived assets include net property, plant and equipment, noncurrent deferred tax assets and other noncurrent assets.

 

 

2018

 

 

2017

 

 

2016

 

U.S.

$

621.9

 

 

$

642.0

 

 

$

720.1

 

Asia

 

113.8

 

 

 

127.6

 

 

 

102.6

 

Europe

 

75.5

 

 

 

81.0

 

 

 

65.3

 

Other

 

63.2

 

 

 

105.2

 

 

 

105.9

 

Consolidated long-lived assets

$

874.4

 

 

$

955.8

 

 

$

993.9