RR Donnelley & Sons (RRD) 8-K Regulation FD Disclosure

Exhibit 99.1

R. R. Donnelley and Sons Company

Segment GAAP to Non-GAAP Operating Income (Loss) and Margin Reconciliation

Quarterly results by segment for the twelve months ended December 31, 2004

$ IN MILLIONS

(UNAUDITED)

During the first quarter of 2005, the Company changed its reportable segments to reflect the new structure of the organization and the manner in which the chief operating decision maker regularly assesses information for decision-making purposes, including the allocation of resources. As a result, the Company’s book, European and Asian operations have been reported in the Publishing and Retail Services segment (previously reported in the Integrated Print Communications segment). This document presents the quarterly information of 2004 in the new segments.

	Publishing and Retail Services			Integrated Print Communications			Forms and Labels			Corporate			Consolidated
Three Months Ended March 31, 2004
Net sales	$	845.3		$	265.5		$	177.9		$	—		$	1,288.7
Operating expense		788.1			261.9			216.7			70.6			1,337.3
Operating income (loss)		57.2			3.6			(38.8	)		(70.6	)		(48.6	)
Operating margin %		6.8	%		1.4	%		(21.8	)%		nm			(3.8	)%
Non-GAAP Adjustments
Restructuring charges		6.7			1.6			3.0			8.6			19.9
Impairment charges		13.4			0.9			—			—			14.3
Integration charges		—			17.5			50.1			0.6			68.2
Total Non-GAAP Adjustments		20.1			20.0			53.1			9.2			102.4
Operating income (loss) before restructuring, impairment and integration charges	$	77.3		$	23.6		$	14.3		$	(61.4	)	$	53.8
Operating margin before restructuring, impairment and integration charges %		9.1	%		8.9	%		8.0	%		nm			4.2	%
Depreciation and amortization		53.1			12.5			7.2			6.4			79.2
Capital Expenditures		20.9			4.4			1.0			0.5			26.8
Three Months Ended June 30, 2004
Net sales	$	908.2		$	517.3		$	417.4		$	—		$	1,842.9
Operating expense		828.1			460.5			387.7			69.1			1,745.4
Operating income (loss)		80.1			56.8			29.7			(69.1	)		97.5
Operating margin %		8.8	%		11.0	%		7.1	%		nm			5.3	%
Non-GAAP Adjustments
Restructuring charges		21.2			6.5			3.5			9.0			40.2
Impairment charges		1.0			(0.9	)		—			—			0.1
Integration charges		—			0.1			0.7			1.8			2.6
Total Non-GAAP Adjustments		22.2			5.7			4.2			10.8			42.9
Operating income (loss) before restructuring, impairment and integration charges	$	102.3		$	62.5		$	33.9		$	(58.3	)	$	140.4
Operating margin before restructuring, impairment and integration charges %		11.3	%		12.1	%		8.1	%		nm			7.6	%
Depreciation and amortization		53.8			24.1			15.1			11.1			104.1
Capital Expenditures		41.2			13.7			2.4			5.4			62.7
Three Months Ended September 30, 2004
Net sales	$	993.6		$	500.7		$	418.7		$	—		$	1,913.0
Operating expense		838.0			446.9			384.0			53.8			1,722.7
Operating income (loss)		155.6			53.8			34.7			(53.8	)		190.3
Operating margin %		15.7	%		10.7	%		8.3	%		nm			9.9	%
Non-GAAP Adjustments
Restructuring charges		1.7			2.8			8.7			1.6			14.8
Impairment charges		0.9			0.7			0.8			—			2.4
Integration charges		—			1.4			0.6			2.4			4.4
Total Non-GAAP Adjustments		2.6			4.9			10.1			4.0			21.6
Operating income (loss) before restructuring, impairment and integration charges	$	158.2		$	58.7		$	44.8		$	(49.8	)	$	211.9
Operating margin before restructuring, impairment and integration charges %		15.9	%		11.7	%		10.7	%		nm			11.1	%
Depreciation and amortization		53.4			24.1			15.7			7.5			100.7
Capital Expenditures		32.2			11.1			3.7			7.0			54.0
Three Months Ended December 31, 2004
Net sales	$	1,143.3		$	528.6		$	439.9		$	—		$	2,111.8
Operating expense		972.6			468.7			417.6			32.9			1,891.8
Operating income (loss)		170.7			59.9			22.3			(32.9	)		220.0
Operating margin %		14.9	%		11.3	%		5.1	%		nm			10.4	%
Non-GAAP Adjustments
Restructuring charges		0.6			3.6			5.4			0.5			10.1
Impairment charges		0.8			1.2			3.6			—			5.6
Integration charges		0.4			2.1			1.1			2.0			5.6
Total Non-GAAP Adjustments		1.8			6.9			10.1			2.5			21.3
Operating income (loss) before restructuring, impairment and integration charges	$	172.5		$	66.8		$	32.4		$	(30.4	)	$	241.3
Operating margin before restructuring, impairment and integration charges %		15.1	%		12.6	%		7.4	%		nm			11.4	%
Depreciation and amortization		52.8			23.5			16.7			8.5			101.5
Capital Expenditures		100.2			9.3			7.3			4.9			121.7
Twelve Months Ended December 31, 2004
Net sales	$	3,890.4		$	1,812.1		$	1,453.9		$	—		$	7,156.4
Operating expense		3,426.8			1,638.0			1,406.0			226.4			6,697.2
Operating income (loss)		463.6			174.1			47.9			(226.4	)		459.2
Operating margin %		11.9	%		9.6	%		3.3	%		nm			6.4	%
Non-GAAP Adjustments
Restructuring charges		30.2			14.5			20.6			19.7			85.0
Impairment charges		16.1			1.9			4.4			—			22.4
Integration charges		0.4			21.1			52.5			6.8			80.8
Total Non-GAAP Adjustments		46.7			37.5			77.5			26.5			188.2
Operating income (loss) before restructuring, impairment and integration charges	$	510.3		$	211.6		$	125.4		$	(199.9	)	$	647.4
Operating margin before restructuring, impairment and integration charges %		13.1	%		11.7	%		8.6	%		nm			9.0	%
Depreciation and amortization		213.1			84.2			54.7			33.5			385.5
Capital Expenditures		194.5			38.5			14.4			17.8			265.2

The Company believes that certain 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 this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.