| Statement Of Financial Position Classified (USD $) | ||
| In Millions, except Share data | Mar. 31, 2009
| Dec. 31, 2008
|
| ASSETS | ||
| Cash and cash equivalents | 1027.6 | $324 |
| Restricted cash equivalents | 0.2 | 7.9 |
| Receivables, less allowance for doubtful accounts of $86.4 in 2009 (2008-$80.5) | 1706.3 | 1903.2 |
| Receivables, allowance for doubtful accounts | 86.4 | 80.5 |
| Income taxes receivable | 27.9 | 189.4 |
| Inventories (Note 3) | 592.2 | 695.7 |
| Prepaid expenses and other current assets | 88.6 | 104.6 |
| Deferred income taxes | 55.3 | 56.2 |
| Total current assets | 3498.1 | 3,281 |
| Property, plant and equipment-net (Note 4) | 2462.8 | 2,564 |
| Goodwill (Note 5) | 2431.7 | 2425.9 |
| Other intangible assets-net (Note 5) | 810.5 | 831.1 |
| Other noncurrent assets | 392.2 | 392.3 |
| Total assets | 9595.3 | 9494.3 |
| LIABILITIES | ||
| Accounts payable | 718.9 | 767.6 |
| Accrued liabilities | 764.5 | 795.7 |
| Short-term and current portion of long-term debt (Note 14) | 826.7 | 923.5 |
| Total current liabilities | 2310.1 | 2486.8 |
| Long-term debt (Note 14) | 3603.3 | 3203.3 |
| Pension liability | 482.7 | 491.5 |
| Postretirement benefits | 292.5 | 291.9 |
| Deferred income taxes | 255.9 | 260.9 |
| Other noncurrent liabilities | 407.8 | 417.6 |
| Liabilities of discontinued operations | 0.4 | 0.4 |
| Total liabilities | 7352.7 | 7152.4 |
| Commitments and Contingencies (Note 13) | 0 | 0 |
| RR Donnelley shareholders' equity | ||
| Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None | 0 | 0 |
| Preferred stock, par value | $1 | $1 |
| Preferred stock, Authorized | 2,000,000 | 2,000,000 |
| Preferred stock, Issued | 0 | 0 |
| Common stock, $1.25 par value Authorized: 500.0 shares; Issued: 243.0 shares in 2009 and 2008 | 303.7 | 303.7 |
| Common stock, par value | 1.25 | 1.25 |
| Common stock, Authorized | 500,000,000 | 500,000,000 |
| Common stock, Issued | 243,000,000 | 243,000,000 |
| Additional paid-in capital | 2892.2 | 2885.7 |
| Retained earnings | 864.6 | 903.8 |
| Accumulated other comprehensive loss | -647.2 | -580.7 |
| Treasury stock, at cost, 37.3 shares in 2009 (2008-37.2 shares) | -1195.7 | (1,194) |
| Treasury stock, shares | 37,300,000 | 37,200,000 |
| Total RR Donnelley shareholders' equity | 2217.6 | 2318.5 |
| Noncontrolling interests | 25 | 23.4 |
| Total equity | 2242.6 | 2341.9 |
| Total liabilities and equity | 9595.3 | 9494.3 |
| Statement Of Income Alternative (USD $) | ||
| In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2009 | 3 Months Ended
Mar. 31, 2008 |
| Net sales | 2455.6 | 2997.1 |
| Cost of sales (exclusive of depreciation and amortization shown below) | 1882.8 | 2218.2 |
| Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) | 283.2 | 344.7 |
| Restructuring and impairment charges-net (Note 6) | 54.2 | 6.9 |
| Depreciation and amortization | 148 | 157.6 |
| Total operating expenses | 2368.2 | 2727.4 |
| Income from continuing operations | 87.4 | 269.7 |
| Interest expense-net | 59.1 | 57 |
| Investment and other income (expense)-net | -0.3 | 4.6 |
| Earnings from continuing operations before income taxes | 28 | 217.3 |
| Income tax expense | 11.6 | 35.4 |
| Net earnings from continuing operations | 16.4 | 181.9 |
| Income from discontinued operations, net of tax | 0 | 0.5 |
| Net earnings | 16.4 | 182.4 |
| Less: (Income) loss attributable to noncontrolling interests | -2.5 | 0.1 |
| Net earnings attributable to RR Donnelley common shareholders | 13.9 | 182.5 |
| Basic: | ||
| Net earnings from continuing operations | 0.07 | 0.85 |
| Income from discontinued operations, net of tax | $0 | $0 |
| Net earnings per share attributable to RR Donnelley common shareholders | 0.07 | 0.85 |
| Diluted: | ||
| Net earnings from continuing operations | 0.07 | 0.85 |
| Income from discontinued operations, net of tax | $0 | $0 |
| Net earnings per share attributable to RR Donnelley common shareholders | 0.07 | 0.85 |
| Dividends declared per common share | 0.26 | 0.26 |
| Weighted average number of common shares outstanding: | ||
| Basic | 205.2 | 214.5 |
| Diluted | 206.7 | 215 |
| Amounts attributable to RR Donnelley common shareholders: | ||
| Net earnings from continuing operations | 13.9 | 182 |
| Income from discontinued operations, net of tax | 0 | 0.5 |
| Net earnings attributable to RR Donnelley common shareholders | 13.9 | 182.5 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2009 | 3 Months Ended
Mar. 31, 2008 |
| OPERATING ACTIVITIES | ||
| Net earnings | 16.4 | 182.4 |
| Adjustments to reconcile net earnings to cash provided by operating activities: | ||
| (Income) loss from discontinued operations | 0 | -0.5 |
| Impairment charges | 12.8 | 1.7 |
| Depreciation and amortization | 148 | 157.6 |
| Provision for doubtful accounts receivable | 8.4 | 11.9 |
| Share-based compensation | 6.4 | 7.5 |
| Deferred taxes | -1.9 | -0.3 |
| (Gain) loss on sale of property, plant and equipment | 0.3 | -7.8 |
| Other | 9.5 | 7.1 |
| Changes in operating assets and liabilities of continuing operations-net of acquisitions: | ||
| Accounts receivable-net | 167.3 | -51.5 |
| Inventories | 98 | -13.8 |
| Prepaid expenses and other current assets | 22.6 | 2.5 |
| Accounts payable | -39.2 | -39.1 |
| Income taxes payable and receivable | 151.8 | 21.1 |
| Accrued liabilities and other | -61.7 | -152.3 |
| Net cash provided by operating activities of continuing operations | 538.7 | 126.5 |
| Net cash used in operating activities of discontinued operations | 0 | -0.8 |
| Net cash provided by operating activities | 538.7 | 125.7 |
| INVESTING ACTIVITIES | ||
| Capital expenditures | -54.9 | -71.9 |
| Acquisition of businesses, net of cash acquired | -23.6 | -121.3 |
| Proceeds from return of capital and sale of investments and other assets | 0.3 | 14.5 |
| Transfers from restricted cash | 6 | 8.7 |
| Net cash used in investing activities | -72.2 | (170) |
| FINANCING ACTIVITIES | ||
| Proceeds from issuance of long-term debt | 400 | 0 |
| Net change in short-term debt | -293.1 | 217.5 |
| Payments of current maturities and long-term debt | -0.3 | -4.4 |
| Payments on credit facility borrowings | (200) | (50) |
| Proceeds from credit facility borrowings | 400 | 0 |
| Debt issuance costs | -3.3 | 0 |
| Issuance of common stock | 0 | 1.1 |
| Acquisition of common stock | 0 | -59.2 |
| Dividends paid | -53.1 | -55.9 |
| Distributions to noncontrolling interests | -0.9 | -0.7 |
| Net cash provided by financing activities | 249.3 | 48.4 |
| Effect of exchange rate on cash flows and cash equivalents | -12.2 | 14.6 |
| Net increase in cash and cash equivalents | 703.6 | 18.7 |
| Cash and cash equivalents at beginning of period | 324 | 379 |
| Cash and cash equivalents at end of period | 1027.6 | 397.7 |
| Supplemental non-cash disclosure: | ||
| Use of restricted cash to fund obligations associated with deferred compensation plans | 0.1 | $24 |
| Notes to Financial Statements | |
| 3 Months Ended
Mar. 31, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 1. BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley Sons Company and its subsidiaries (the Company or RR Donnelley) and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. These unaudited condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Companys latest Annual Report on Form 10-K for the year ended December31, 2008 filed with the SEC on February25, 2009. Operating results for the three months ended March31, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending December31, 2009. All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. |
| 2. ACQUISITIONS | 2. ACQUISITIONS 2009 Acquisition On January2, 2009, the Company acquired the assets of PROSA, a web printing company located in Santiago, Chile. The purchase price for PROSA was approximately $23.6 million. PROSAs operations are included in the International segment. The operations of PROSA are complementary to the Companys existing facility in Chile, and the acquisition is expected to improve the Companys ability to serve customers in Latin America, increase capacity utilization, and reduce management, procurement and manufacturing costs. The PROSA acquisition was recorded by allocating the cost of the acquisition to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisition over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill, none of which is tax deductible. The final purchase price allocation is as follows: Accounts receivable $ 2.5 Property, plant and equipment 9.1 Amortizable intangible assets 8.6 Goodwill 6.5 Accounts payable and accrued liabilities (2.5 ) Deferred taxesnet (0.6 ) Net cash paid $ 23.6 The fair values of machinery and equipment, goodwill and intangible assets associated with the acquisition of PROSA were determined to be Level 3 under the fair value hierarchy in accordance with Statement of Financial Accounting Standards No.157, Fair Value Measurements (SFAS 157). Plant and equipment values were estimated based on discussions with machinery and equipment brokers, dealer quotes, and internal expertise related to the equipment and current marketplace conditions. Intangible asset values, including customer relationships and a non-compete agreement, were estimated based on future cash flows and customer attrition rates discounted using an estimated weighted-average cost of capital. 2008 Acquisitions On March14, 2008, the Company acquired Pro Line Printing, Inc. (Pro Line), a multi-facility, privately held producer of newspaper inserts headquartered in Irving, Texas. The purchase price for Pro Line was approximately $122.2 million, net of cash acquired of $1.7 million and including acquisition costs of $4.3 million. Pro Lines operations are included in the U.S. Print and Related Services segment. The operations of Pro Line are complementary to the Companys existing retail insert product line. As a result, this acquisition is expected to improve the Companys ability to serve customers, increase capacity utilization, and reduce management, procurement and manufacturing costs. The Pro Line and another immaterial printing-company acquisition were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets and liabilities assumed, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisition over the net amounts assigned to the fair value of the assets acquired and the liabilities assumed was recorded as goodwill, none of which is tax deductible. Based on these valuations, the final purchase pr |
| 3. INVENTORIES | 3. INVENTORIES March31, 2009 December31, 2008 Raw materials and manufacturing supplies $ 274.6 $ 311.3 Work-in-process 156.7 183.2 Finished goods 258.8 296.6 LIFO reserve (97.9 ) (95.4 ) Total $ 592.2 $ 695.7 |
| 4. PROPERTY, PLANT AND EQUIPMENT | 4. PROPERTY, PLANT AND EQUIPMENT March31, 2009 December31, 2008 Land $ 90.7 $ 91.6 Buildings 1,135.3 1,143.1 Machinery and equipment 5,915.7 5,935.3 7,141.7 7,170.0 Less: Accumulated depreciation (4,678.9 ) (4,606.0 ) Total $ 2,462.8 $ 2,564.0 Assets Held for Sale Primarily as a result of recent restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $6.8 million at March31, 2009 and $5.9 million at December31, 2008. These assets are included in other current assets in the Condensed Consolidated Balance Sheets at the lower of their historical net book value or their estimated fair value, less estimated costs to sell. |
| 5. GOODWILL AND OTHER INTANGIBLE ASSETS | 5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at March31, 2009 and December31, 2008 was as follows: Goodwill U.S.Printand RelatedServices International Total Net book value at December31, 2008 $ 2,193.4 $ 232.5 $ 2,425.9 Acquisitions 6.5 6.5 Foreign exchange and other adjustments (0.7 ) (0.7 ) Net book value at March31, 2009 $ 2,193.4 $ 238.3 $ 2,431.7 The components of other intangible assets at March31, 2009 and December31, 2008 were as follows: March31, 2009 December31, 2008 Other Intangible Assets Gross Carrying Amount Accumulated Amortization and Foreign Exchange NetBook Value Gross Carrying Amount Accumulated Amortization and Foreign Exchange NetBook Value Trademarks, licenses and agreements $ 22.5 $ (21.8 ) $ 0.7 $ 21.9 $ (21.9 ) $ Patents 98.3 (62.2 ) 36.1 98.3 (59.1 ) 39.2 Customer relationship intangibles 1,147.8 (406.8 ) 741.0 1,139.8 (380.7 ) 759.1 Trade names 19.3 (4.7 ) 14.6 19.3 (4.6 ) 14.7 Total amortizable purchased intangible assets 1,287.9 (495.5 ) 792.4 1,279.3 (466.3 ) 813.0 Indefinite-lived trade names 18.1 18.1 18.1 18.1 Total purchased intangible assets $ 1,306.0 $ (495.5 ) $ 810.5 $ 1,297.4 $ (466.3 ) $ 831.1 During the three months ended March31, 2009 and the year ended December31, 2008, the Company recorded additions to intangible assets of $8.6 million and $17.3 million, respectively. The components of other intangible assets acquired during the three months ended March31, 2009 and the year ended December31, 2008, were as follows: Three months ended March31, 2009 Year ended December31, 2008 Amount Weighted Average Amortization Period Amount Weighted Average Amortization Period Trademarks, licenses and agreements $ 0.6 8.0 $ Customer relationship intangibles 8.0 8.0 15.6 6.4 Indefinite-lived trade names 1.7 Total additions $ 8.6 $ 17.3 Amortization expense for other intangible assets was $24.3 million and $32.1 million for the three months ended March31, 2009 and 2008, respectively. The estimated annual amortization expense related to intangible assets as of March31, 2009 is as follows. Amount For the year ending December31, 2009 $ 96.7 2010 96.7 2011 96.5 2012 84.7 2013 82.6 2014 and thereafter 359.5 Total $ 816.7 |
| 6. RESTRUCTURING AND IMPAIRMENT CHARGES | 6. RESTRUCTURING AND IMPAIRMENT CHARGES Restructuring and Impairment Costs Charged to Results of Operations For the three months ended March31, 2009 and 2008, the Company recorded the following net restructuring and impairment charges: March31, 2009 March31, 2008 Employee Terminations Other Charges Impairment Total Employee Terminations Other Charges Impairment Total U.S. Print and Related Services $ 23.3 $ 1.0 $ 8.4 $ 32.7 $ 2.6 $ 1.0 $ 1.7 $ 5.3 International 13.6 0.3 4.4 18.3 2.5 0.3 2.8 Corporate 2.1 1.1 3.2 (0.5 ) (0.7 ) (1.2 ) $ 39.0 $ 2.4 $ 12.8 $ 54.2 $ 4.6 $ 0.6 $ 1.7 $ 6.9 For the three months ended March31, 2009, the Company recorded net restructuring charges of $39.0 million for employee termination costs for 2,693 employees, of whom 1,709 were terminated as of March31, 2009, associated with actions resulting from the reorganization of certain operations. These actions included the announced closings of two catalog, magazine and retail insert manufacturing facilities, one book manufacturing facility and one digital solutions facility within the U.S. Print and Related Services segment. In addition, these actions included the announced closings of one Global Turnkey Solutions manufacturing facility and one European manufacturing facility within the International segment. Additionally, the Company incurred other restructuring charges, including lease termination and other facility closure costs of $2.4 million for the three months ended March31, 2009. For the three months ended March31, 2009, the Company also recorded $12.8 million of impairment charges primarily for machinery and equipment associated with the facility closings. The fair values of the machinery and equipment were determined to be Level 3 under the fair value hierarchy in accordance with SFAS 157 and were estimated based on discussions with machinery and equipment brokers, dealer quotes, and internal expertise related to the equipment and current marketplace conditions. For the three months ended March31, 2008, the Company recorded net restructuring charges of $4.6 million for employee termination costs for 230 employees (all of whom were terminated as of March31, 2009) associated with actions resulting from the reorganization of certain operations and the exiting of certain business activities. These activities included the realignment and consolidation of financial print organizations in the U.S. Print and Related Services and International segments. Additionally, the Company recorded $1.7 million of impairment charges of other long-lived assets and $0.6 million of other restructuring costs, including lease and other facility closure costs. Restructuring Reserve Activity impacting the Companys restructuring reserve for the three months ended March31, 2009 is as follows: December31, 2008 Restructuring |
| 7. EMPLOYEE BENEFITS | 7. EMPLOYEE BENEFITS The components of the estimated pension and postretirement benefits expense for the three months ended March31, 2009 and 2008 were as follows: ThreeMonthsEnded March31, 2009 2008 Pension expense Service cost $ 17.4 $ 21.5 Interest cost 44.0 42.1 Expected return on assets (63.6 ) (66.6 ) Amortization, net 1.7 (1.2 ) Settlement (0.1 ) Net pension benefit $ (0.5 ) $ (4.3 ) Postretirement benefits expense Service cost $ 2.6 $ 3.1 Interest cost 7.7 7.6 Expected return on assets (3.9 ) (4.1 ) Amortization, net (4.3 ) (3.6 ) Net postretirement benefits expense $ 2.1 $ 3.0 |
| 8. SHARE-BASED COMPENSATION | 8. SHARE-BASED COMPENSATION The Company recognizes compensation expense, based on estimated fair values, for all share-based awards made to employees and directors, including stock options, restricted stock units and performance share units. The total compensation expense related to all share-based compensation plans was $6.4 million and $7.5 million for the three months ended March31, 2009 and 2008, respectively. Stock Options The Company granted 1,520,468 and 754,000 stock options during the three months ended March31, 2009 and 2008, respectively. The fair value of each stock option award is estimated on the date of grant using the Black Scholes Option Pricing Model. The fair value of these stock options was determined using the following assumptions: 2009 2008 Expected volatility 29.67 % 22.78 % Risk-free interest rate 2.27 % 2.96 % Expected life (years) 6.25 6.25 Expected dividend yield 3.63 % 3.31 % The weighted-average grant date fair value of these options was $1.47 and $5.63 per stock option for the first quarter of 2009 and 2008, respectively. The following table is a summary of the Companys stock option activity: Shares Under Option (Thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate IntrinsicValue (Millions) Outstanding at December31, 2008 3,624 $ 28.76 5.1 $ 0.7 Granted 1,520 7.09 9.9 Exercised (3 ) 13.25 Cancelled/forfeited/expired (319 ) 33.89 Outstanding at March31, 2009 4,822 21.60 6.8 $ 0.6 Exercisable at March31, 2009 68 $ 4.33 1.7 $ 0.2 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Companys closing stock price on March31, 2009 and December31, 2008, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March31, 2009 and December31, 2008. This amount will change in future periods based on the fair market value of the Companys stock and the number of options outstanding. Total intrinsic value of options exercised for the three months ended March31, 2009 and 2008 was less than $0.1 million and $0.5 million, respectively. Compensation expense recognized related to stock options for the three months ended March31, 2009 and 2008 was $0.5 million and $0.4 million, respectively. As of March31, 2009, $7.1 million of total unrecognized share-based compensation expense related to stock options is expected to be recognized over a weighted average period of 3.0 years. Restricted Stock Units Nonvested restricted stock unit awards as of March31, 2009 and December31, 2008 and changes during the three months ended March31, 2009 were as follows: Shares (Thousands) WeightedAverageGrant Date Fair Value Nonvested at December 31, 2008 1,797 $ 30.47 Granted 3,952 4.53 Ves |
| 9. EARNINGS PER SHARE ATTRIBUTABLE TO RR DONNELLEY COMMON SHAREHOLDERS | 9. EARNINGS PER SHARE ATTRIBUTABLE TO RR DONNELLEY COMMON SHAREHOLDERS ThreeMonthsEnded March31, 2009 2008 Numerator: Net earnings attributable to RR Donnelley common shareholders $ 13.9 $ 182.5 Denominator: Weighted average number of common shares outstanding 205.2 214.5 Dilutive options and awards(a) 1.5 0.5 Diluted weighted average number of common shares outstanding 206.7 215.0 Net earnings per share attributable to RR Donnelley common shareholders: Basic $ 0.07 $ 0.85 Diluted $ 0.07 $ 0.85 Cash dividends paid per common share $ 0.26 $ 0.26 (a) Diluted net earnings per common share takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the three months ended March31, 2009 and 2008, 3.7million and 2.0million common stock equivalents, respectively, were excluded as their effect would be anti-dilutive. |
| 10. COMPREHENSIVE INCOME (LOSS) | 10. COMPREHENSIVE INCOME (LOSS) ThreeMonthsEnded March31, 2009 2008 Net earnings $ 16.4 $ 182.4 Translation adjustments (56.3 ) 55.4 Unrealized loss on investments, net of tax (0.3 ) Adjustment for net periodic pension and postretirement benefit cost, net of tax (10.4 ) (1.0 ) Change in fair value of derivatives, net of tax 0.2 17.7 Comprehensive income (loss) (50.1 ) 254.2 Less: comprehensive (income) loss attributable to noncontrolling interests (2.5 ) 0.1 Comprehensive income (loss) attributable to RR Donnelley common shareholders $ (52.6 ) $ 254.3 For the three months ended March31, 2009, the changes in other comprehensive income were net of tax provisions of $0.2 million related to the change in fair value of derivatives and tax benefits of $1.3 million for the adjustment for net periodic pension and postretirement benefit cost. For the three months ended March31, 2008, the changes in other comprehensive income were net of tax provisions of $2.6 million related to unrealized foreign currency gains and $11.8 million related to changes in the fair value of derivatives, as well as tax benefits of $2.2 million for the adjustment for net periodic pension and postretirement benefit cost. |
| 11. EQUITY | 11. EQUITY The following table summarizes the Companys equity activity for the three months ended March31, 2009: RR Donnelley Shareholders Equity Noncontrolling Interests Total Equity Balance at December31, 2008 $ 2,318.5 $ 23.4 $ 2,341.9 Net earnings 13.9 2.5 16.4 Other comprehensive loss (66.5 ) (66.5 ) Stock-based awards 6.5 6.5 Stock-based awards withholdings and other (1.7 ) (1.7 ) Cash dividends paid (53.1 ) (53.1 ) Distributions to noncontrolling interests (0.9 ) (0.9 ) Balance at March31, 2009 $ 2,217.6 $ 25.0 $ 2,242.6 |
| 12. SEGMENT INFORMATION | 12. SEGMENT INFORMATION The Company operates primarily in the printing industry, with related service offerings designed to offer customers complete solutions for communicating their messages to target audiences. The Companys reportable segments reflect the management reporting 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. The Companys segments and their products and service offerings are summarized below: U.S. Print and Related Services The U.S. Print and Related Services segment includes the Companys U.S. printing operations, managed as one integrated platform, along with related logistics, premedia and print-management services. This segments products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial print, direct mail, forms, labels, office products, premedia and logistics services. International The International segment includes the Companys non-U.S. printing operations in Asia, Europe, Latin America and Canada. Additionally, this segment includes the Companys business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management services 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 and North America. Corporate Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and LIFO inventory provisions. In addition, certain costs and earnings of employee benefit plans, primarily components of net pension and postretirement benefits expense other than service cost, are included in Corporate and not allocated to operating segments. The Company has disclosed income (loss) from continuing operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Companys chief operating decision-maker and is most consistent with the presentation of profitability reported within the condensed consolidated financial statements. TotalSales Intersegment Sales Net Sales Income(Loss) from Continuing Operations Assets of Continuing Operations Depreciation and Amortization Capital Expenditures Three months ended March31,2009 U.S. Print and Related Services $ 1,914.4 $ (7.0 ) $ 1,907.4 $ 114.4 $ 6,799.8 $ 107.7 $ 35.7 International 561.9 (13.7 ) 548.2 16.5 1,947.1 30.3 16.2 Total operating segments 2,476.3 (20.7 ) 2,455.6 130.9 8,746.9 138.0 51.9 Corp |
| 13. COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES The Company is subject to laws and regulations relating to the protection of the environment. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are not discounted. The Company has been designated as a potentially responsible party in twelve federal and state Superfund sites. In addition to the Superfund sites, the Company may also have the obligation to remediate six other previously owned facilities and four other currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that the Companys liability could be joint and several, meaning that the Company could be required to pay an amount in excess of its proportionate share of the remediation costs. The Companys understanding of the financial strength of other potentially responsible parties at the Superfund sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of the Companys estimated liability. The Company established reserves, recorded in accrued liabilities and other noncurrent liabilities, that it believes are adequate to cover its share of the potential costs of remediation at each of the Superfund sites and the previously and currently owned facilities. While it is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that the Company may undertake in the future, in the opinion of management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect on the Companys consolidated annual results of operations, financial position or cash flows. From time to time, the Companys customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company could be considered preference items and subject to return to the bankruptcy administrator. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material adverse effect on the Companys consolidated annual results of operations, financial position or cash flows. |
| 14. DEBT | 14. DEBT The Companys debt consists of the following: March31, 2009 December31, 2008 Commercial paper $ $ 289.8 Credit facility borrowings 400.0 200.0 3.75% senior notes due April1, 2009 400.0 400.0 4.95% senior notes due May15, 2010 499.7 499.6 5.625% senior notes due January15, 2012 624.5 624.5 4.95% senior notes due April1, 2014 598.8 598.8 5.50% senior notes due May15, 2015 499.5 499.5 6.125% senior notes due January15, 2017 621.2 621.0 11.25% senior notes due February1, 2019 400.0 8.875% debentures due April15, 2021 80.9 80.9 6.625% debentures due April15, 2029 199.2 199.2 8.820% debentures due April15, 2031 68.9 68.9 Other, including capital leases 37.3 44.6 Total debt 4,430.0 4,126.8 Less: current portion (826.7 ) (923.5 ) Long-term debt $ 3,603.3 $ 3,203.3 On January14, 2009, the Company issued $400.0 million of 11.25% senior notes due February1, 2019. The net proceeds from the offering were used to pay down short-term debt. The Company used $400.0 million of available cash to pay off its 3.75% senior notes that matured on April1, 2009. |
| 15. DERIVATIVES | 15. DERIVATIVES In accordance with Statement of Financial Accounting Standards No.133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS 133), all derivatives are recorded as other assets or other liabilities on the condensed consolidated balance sheets at their respective fair values with unrealized gains and losses recorded in other comprehensive income (loss), net of applicable income taxes, or in the condensed consolidated statements of operations, depending on the purpose for which the derivative is held. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge at inception, or fail to meet the criteria thereafter, are recognized currently in the condensed consolidated statements of operations. At the inception of a hedge transaction, the Company formally documents the hedge relationship and the risk management objective for undertaking the hedge. In addition, the Company assesses both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is recognized currently in the condensed consolidated statements of operations. The Company is exposed to the impact of foreign currency fluctuations in certain countries in which it operates. The exposure to foreign currency movements is limited in most countries, because the operating revenues and expenses of its various subsidiaries and business units are substantially in the local currency of the country in which they operate. To the extent borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange forward contracts and cross-currency swaps to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the implied gains and losses associated with the fair values of foreign currency exchange contracts and cross-currency interest rate swaps are generally offset by gains and losses on underlying payables, receivables, and net investments in foreign subsidiaries. The Company does not use derivative financial instruments for trading or speculative purposes. The Company has entered into foreign exchange forward contracts in order to manage the currency exposure of certain receivables and liabilities. The foreign exchange forward contracts were not designated as hedges under SFAS 133, and accordingly, the fair value gains or losses from these foreign currency derivatives are recognized currently in the condensed consolidated statements of operations, generally offsetting the foreign exchange gains or losses on the exposures being managed. The aggregate notional value of the forward contracts at March31, 2009 and December31, 2008 was $167.8 million and $299.4 million, respectively. The fair values of foreign exchange forward contracts were determined to be Level 2 under the fair value hierarchy in accordance with S |
| 16. NEW ACCOUNTING PRONOUNCEMENTS | 16. NEW ACCOUNTING PRONOUNCEMENTS In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No.157, Fair Value Measurements (SFAS 157), which was adopted in the first quarter of 2008 for financial assets and the first quarter of 2009 for non-financial assets. This statement clarified the definition of fair value, established a framework for measuring fair value, and expanded the disclosures on fair value measurements. The adoption of SFAS 157 did not have a material impact on the Companys consolidated financial position, annual results of operations or cash flows. In December 2007, the FASB issued Statement of Financial Accounting Standards No.141(R), Business Combinations (SFAS 141(R)), which the Company adopted January1, 2009. SFAS 141(R) retained the fundamental requirements in Statement of Financial Accounting Standards No.141, Business Combinations (SFAS 141), which required that the acquisition method of accounting (formerly known as the purchase method) be used for all business combinations and changed the accounting treatment for certain acquisition related costs, restructuring activities, and acquired contingencies, among other changes. SFAS 141(R) retained the guidance in SFAS 141 for identifying and recognizing intangible assets separately from goodwill. This statement was required to be adopted for acquisitions consummated after December31, 2008, with certain provisions applied to earlier acquisitions. The adoption of SFAS 141(R) by the Company during the first quarter of 2009 did not have a material impact on the Companys consolidated financial position, annual results of operations or cash flows. The Company expects that its adoption will reduce the Companys operating earnings due to required recognition of acquisition and restructuring costs through operating earnings. The magnitude of this impact will be dependent on the number, size and nature of acquisitions in periods subsequent to adoption. In December 2007, the FASB issued Statement of Financial Accounting Standards No.160, Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No.51 (SFAS 160), which amended the accounting for and disclosure of the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS 160 clarified the definition and classification of a noncontrolling interest, revised the presentation of noncontrolling interests in the consolidated income statement, established a single method of accounting for changes in a parents ownership interest in a subsidiary that does not result in deconsolidation, and required that a parent recognize a gain or loss in net earnings (loss) when a subsidiary is deconsolidated. SFAS 160 also required expanded disclosures in the consolidated financial statements that clearly identify and distinguish between the interests of the parents owners and the interests of the noncontrolling owners of a subsidiary. SFAS 160 was adopted by the Company as of January1, 2009. The adoption of SFAS 160 did not have a material impact on the Companys consolidated financial position, annual results of operations or ca |
| Document Information | |
| 3 Months Ended
Mar. 31, 2009 USD / shares | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-03-31 |
| Entity Information (USD $) | |
| 3 Months Ended
Mar. 31, 2009 | |
| Entity Information [Line Items] | |
| Entity Registrant Name | RR Donnelley & Sons Co |
| Entity Central Index Key | 0000029669 |
| Current Fiscal Year End Date | --12-31 |
| Entity Well-known Seasoned Issuer | Yes |
| Entity Voluntary Filers | No |
| Entity Current Reporting Status | Yes |
| Entity Filer Category | Large Accelerated Filer |
| Entity Public Float | $6,245,926,242 |
| Entity Common Stock, Shares Outstanding | 205,200,000 |
| Entity Listings [Line Items] | |
| Trading Symbol | RRD |
