Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Net sales | 9857.4 | 11581.6 | 11587.1 |
Cost of sales (exclusive of depreciation and amortization shown below) | 7462.9 | 8576.3 | 8532.4 |
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) | 1088.5 | 1220.5 | 1302.3 |
Restructuring and impairment charges-net (Note 3) | 382.7 | 1184.7 | 839 |
Depreciation and amortization | 579 | 640.6 | 598.3 |
Total operating expenses | 9513.1 | 11622.1 | 11,272 |
Income (loss) from continuing operations | 344.3 | -40.5 | 315.1 |
Interest expense-net (Note 13) | 234.6 | 226.4 | 227.3 |
Investment and other income (expense)-net | -16.6 | -2.4 | 3.6 |
Earnings (loss) from continuing operations before income taxes | 93.1 | -269.3 | 91.4 |
Income tax expense (benefit) (Note 12) | 114.5 | -83.9 | 136.5 |
Net loss from continuing operations | -21.4 | -185.4 | -45.1 |
Income (loss) from discontinued operations, net of tax | 0 | 1.8 | -0.5 |
Net loss | -21.4 | -183.6 | -45.6 |
Less: Income attributable to noncontrolling interests | -5.9 | -6.3 | -3.3 |
Net loss attributable to RR Donnelley common shareholders | -27.3 | -189.9 | -48.9 |
Basic: | |||
Net loss from continuing operations | -0.13 | -0.91 | -0.22 |
Income from discontinued operations, net of tax | $0 | 0.01 | $0 |
Net loss attributable to RR Donnelley common shareholders | -0.13 | -0.9 | -0.22 |
Diluted: | |||
Net loss from continuing operations | -0.13 | -0.91 | -0.22 |
Income from discontinued operations, net of tax | $0 | 0.01 | $0 |
Net loss attributable to RR Donnelley common shareholders | -0.13 | -0.9 | -0.22 |
Weighted average number of common shares outstanding (Note 16): | |||
Basic | 205.2 | 210.2 | 218 |
Diluted | 205.2 | 210.2 | 218 |
Amounts attributable to RR Donnelley common shareholders: | |||
Net loss from continuing operations | -27.3 | -191.7 | -48.4 |
Income from discontinued operations, net of tax | 0 | 1.8 | -0.5 |
Net loss attributable to RR Donnelley common shareholders | -27.3 | -189.9 | -48.9 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
ASSETS | ||
Cash and cash equivalents | 499.2 | $324 |
Restricted cash equivalents | 0 | 7.9 |
Receivables, less allowances for doubtful accounts of $70.3 in 2009 (2008-$80.5) (Note 5) | 1675.9 | 1903.2 |
Income taxes receivable (Note 12) | 63.2 | 189.4 |
Inventories (Note 6) | 561.8 | 695.7 |
Prepaid expenses and other current assets | 87 | 104.6 |
Deferred income taxes (Note 12) | 73.8 | 56.2 |
Total current assets | 2960.9 | 3,281 |
Property, plant and equipment-net (Note 7) | 2271.4 | 2,564 |
Goodwill (Note 4) | 2333.3 | 2425.9 |
Other intangible assets-net (Note 4) | 747.4 | 831.1 |
Other noncurrent assets | 434.6 | 392.3 |
Total assets | 8747.6 | 9494.3 |
LIABILITIES | ||
Accounts payable | 886.4 | 767.6 |
Accrued liabilities (Note 9) | 813.4 | 795.7 |
Short-term debt and current portion of long-term debt (Note 13) | 339.9 | 923.5 |
Total current liabilities | 2039.7 | 2486.8 |
Long-term debt (Note 13) | 2982.5 | 3203.3 |
Pension liability (Note 11) | 509.8 | 491.5 |
Postretirement benefits (Note 11) | 324.5 | 291.9 |
Deferred income taxes (Note 12) | 205.5 | 260.9 |
Other noncurrent liabilities | 524.6 | 418 |
Total liabilities | 6586.6 | 7152.4 |
RR Donnelley shareholders' equity | ||
Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None | 0 | 0 |
Common stock, $1.25 par value Authorized: 500.0 shares; Issued: 243.0 shares in 2009 and 2008 | 303.7 | 303.7 |
Additional paid-in-capital | 2906.2 | 2885.7 |
Retained earnings | 662.9 | 903.8 |
Accumulated other comprehensive loss | (545) | -580.7 |
Treasury stock, at cost, 37.3 shares in 2009 (2008-37.2 shares) | -1193.8 | (1,194) |
Total RR Donnelley shareholders' equity | 2,134 | 2318.5 |
Noncontrolling interests | 27 | 23.4 |
Total equity | 2,161 | 2341.9 |
Total liabilities and equity | 8747.6 | 9494.3 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Millions, except Per Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Receivables, allowances for doubtful accounts | 70.3 | 80.5 |
Preferred stock, par value | $1 | $1 |
Preferred stock, Authorized | 2 | 2 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | 1.25 | 1.25 |
Common stock, Authorized | 500 | 500 |
Common stock, Issued | 243 | 243 |
Treasury stock, shares | 37.3 | 37.2 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
OPERATING ACTIVITIES | |||
Net loss | -21.4 | -183.6 | -45.6 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
(Income) loss from discontinued operations | 0 | -1.8 | 0.5 |
Impairment charges | 154 | 1,130 | 778.6 |
Depreciation and amortization | 579 | 640.6 | 598.3 |
Provision for doubtful accounts receivable | 19.7 | 52.1 | 11.2 |
Share-based compensation | 24 | 21.9 | 27.9 |
Deferred taxes | -54.1 | -103.7 | -89.2 |
Reversal of tax reserves | -2.6 | -28.2 | -9.3 |
Loss (gain) on sale of investments and other assets-net | 3.2 | -11.7 | 2.8 |
Loss on debt extinguishment | 10.3 | 0 | 0 |
Other | 41.8 | 32.1 | 25.4 |
Changes in operating assets and liabilities of continuing operations-net of acquisitions: | |||
Accounts receivable-net | 244 | 164.7 | -93.9 |
Inventories | 145.5 | -6.6 | -10.1 |
Prepaid expenses and other current assets | 31.4 | -17.1 | -2.1 |
Accounts payable | 94.9 | (168) | -1.3 |
Income taxes payable and receivable | 114.6 | -213.9 | -37.3 |
Accrued liabilities and other | 41.5 | (288) | 25.8 |
Net cash provided by operating activities of continuing operations | 1425.8 | 1018.8 | 1181.7 |
Net cash used in operating activities of discontinued operations | 0 | -0.8 | -0.7 |
Net cash provided by operating activities | 1425.8 | 1,018 | 1,181 |
INVESTING ACTIVITIES | |||
Capital expenditures | (195) | -322.9 | (482) |
Acquisitions of businesses, net of cash acquired | -26.6 | -122.1 | -2052.4 |
Proceeds from return of capital and sale of investments and other assets | 2.2 | 53.2 | 8.3 |
Purchases of other investments | (4) | 0 | 0 |
Transfers (to)/from restricted cash | -37.5 | 40.6 | 15.2 |
Net cash used in investing activities | -260.9 | -351.2 | -2510.9 |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt | 750 | 0 | 1244.2 |
Net change in short-term debt | -305.6 | 6.8 | 282.1 |
Payments of current maturities and long-term debt | -1051.9 | (10) | -5.8 |
Payments of credit facility borrowings | (845) | (1,475) | 0 |
Proceeds from credit facility borrowings | 645 | 1,275 | 400 |
Proceeds from termination of cross-currency swaps | 0 | 22.5 | 0 |
Debt issuance costs | (6) | 0 | -13.1 |
Issuance of common stock | 1.5 | 1.9 | 105.1 |
Acquisition of common stock | 0 | -278.8 | -309.5 |
Dividends paid | -213.6 | -219.2 | -226.8 |
Distributions to noncontrolling interests | -2.4 | -2.1 | -4.9 |
Net cash (used in) provided by financing activities | (1,028) | -678.9 | 1471.3 |
Effect of exchange rate on cash and cash equivalents | 38.3 | -42.9 | 26.2 |
Net (decrease) increase in cash and cash equivalents | 175.2 | (55) | 167.6 |
Cash and cash equivalents at beginning of year | 324 | 379 | 211.4 |
Cash and cash equivalents at end of year | 499.2 | 324 | 379 |
Supplemental non-cash disclosure: | |||
Use of restricted cash to fund obligations associated with deferred compensation plans | 0.9 | 25.3 | 36.5 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||||
In Millions | Common Stock
| Additional Paid-in- Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss)
| Total RR Donnelley's Shareholders' Equity
| Noncontrolling Interests
| Total
|
Beginning Balance at Dec. 31, 2006 | 303.7 | 2871.8 | -727.9 | $1,615 | 62.1 | 4124.7 | 19.3 | $4,144 |
Beginning Balance (in shares) at Dec. 31, 2006 | 243 | -24.2 | ||||||
Net earnings (loss) | -48.9 | -48.9 | 3.3 | -45.6 | ||||
Translation adjustments | 129.4 | 129.4 | 0.9 | 130.3 | ||||
Pension and other benefit liability adjustments | 85.4 | 85.4 | 85.4 | |||||
Unrealized gain on investment | 0.5 | 0.5 | 0.5 | |||||
Change in fair value of derivatives and hedge reclassifications | 0.2 | 0.2 | 0.2 | |||||
Comprehensive income (loss) | 166.6 | 4.2 | 170.8 | |||||
Cumulative effect of change in accounting principle ("FIN 48") | (23) | (23) | (23) | |||||
SFAS 158 transition adjustment | -3.4 | 63.7 | 60.3 | 60.3 | ||||
Acquisition of common stock (in shares) | -7.7 | |||||||
Acquisition of common stock | -309.5 | -309.5 | -309.5 | |||||
Share-based compensation | -13.4 | 172.6 | 159.2 | 159.2 | ||||
Share-based compensation (in shares) | 6 | |||||||
Withholdings for share-based awards and other (in shares) | -1.2 | |||||||
Withholdings for share-based awards and other | -44.2 | -44.2 | -44.2 | |||||
Cash dividends paid | -226.8 | -226.8 | -226.8 | |||||
Contributions by noncontrolling interests | 0.3 | 0.3 | ||||||
Distributions to noncontrolling interests | -4.9 | -4.9 | ||||||
Other | 0.1 | 0.1 | ||||||
Ending Balance (in shares) at Dec. 31, 2007 | 243 | -27.1 | ||||||
Ending Balance at Dec. 31, 2007 | 303.7 | 2858.4 | (909) | 1312.9 | 341.3 | 3907.3 | 19 | 3926.3 |
Net earnings (loss) | -189.9 | -189.9 | 6.3 | -183.6 | ||||
Translation adjustments | -154.4 | -154.4 | 0.5 | -153.9 | ||||
Pension and other benefit liability adjustments | -772.4 | -772.4 | -772.4 | |||||
Changes in investment securities | -1.4 | -1.4 | -1.4 | |||||
Change in fair value of derivatives and hedge reclassifications | 6.2 | 6.2 | 6.2 | |||||
Comprehensive income (loss) | -1111.9 | 6.8 | -1105.1 | |||||
Acquisition of common stock (in shares) | (10) | |||||||
Acquisition of common stock | -278.8 | -278.8 | -278.8 | |||||
Share-based compensation | 27.3 | 27.3 | 27.3 | |||||
Withholdings for share-based awards and other (in shares) | -0.1 | |||||||
Withholdings for share-based awards and other | -6.2 | -6.2 | -6.2 | |||||
Cash dividends paid | -219.2 | -219.2 | -219.2 | |||||
Distributions to noncontrolling interests | -2.1 | -2.1 | ||||||
Other | -0.3 | -0.3 | ||||||
Ending Balance (in shares) at Dec. 31, 2008 | 243 | -37.2 | ||||||
Ending Balance at Dec. 31, 2008 | 303.7 | 2885.7 | (1,194) | 903.8 | -580.7 | 2318.5 | 23.4 | 2341.9 |
Net earnings (loss) | -27.3 | -27.3 | 5.9 | -21.4 | ||||
Translation adjustments | 99.1 | 99.1 | 0.1 | 99.2 | ||||
Pension and other benefit liability adjustments | -65.7 | -65.7 | -65.7 | |||||
Change in fair value of derivatives and hedge reclassifications | 2.3 | 2.3 | 2.3 | |||||
Comprehensive income (loss) | 8.4 | 6 | 14.4 | |||||
Share-based compensation | 20.5 | 2.8 | 23.3 | 23.3 | ||||
Share-based compensation (in shares) | 0.1 | |||||||
Withholdings for share-based awards and other (in shares) | -0.2 | |||||||
Withholdings for share-based awards and other | -2.6 | -2.6 | -2.6 | |||||
Cash dividends paid | -213.6 | -213.6 | -213.6 | |||||
Distributions to noncontrolling interests | -2.4 | -2.4 | ||||||
Ending Balance (in shares) at Dec. 31, 2009 | 243 | -37.3 | ||||||
Ending Balance at Dec. 31, 2009 | 303.7 | 2906.2 | -1193.8 | 662.9 | ($545) | $2,134 | $27 | $2,161 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of PresentationThe accompanying consolidated 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). All intercompany transactions have been eliminated in consolidation. The accounts of businesses acquired during 2009, 2008 and 2007 are included in the consolidated financial statements from the dates of acquisition (see Note 2). Nature of OperationsThe Company is a global provider of integrated communications which works collaboratively with more than 60,000 customers worldwide to develop custom communications solutions that reduce costs, enhance return on investment and ensure compliance. Drawing on a range of proprietary and commercially available digital and conventional technologies deployed across four continents, the Company employs a suite of leading Internet-based capabilities and other resources to provide premedia, printing, logistics and business process outsourcing products and services to leading clients in virtually every private and public sector. Use of EstimatesThe preparation of consolidated financial statements, in conformity with GAAP, requires the extensive use of managements estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, self-insurance reserves, taxes, restructuring and other provisions and contingencies. Foreign OperationsAssets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) within shareholders equity while transaction gains and losses are recorded in net income (loss). Fair Value MeasurementsCertain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its forward contracts, pension plans and other postretirement plans on a recurring basis. Assets measured at fair value on a nonrecurring |
Acquisitions
Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Acquisitions | Note 2. Acquisitions 2009 Acquisitions On June18, 2009, the Company acquired Prospectus Central, LLC (Prospectus), an e-delivery company located in Fitzgerald, Georgia. The purchase price for Prospectus was $3.0 million. Prospectuss operations are included in the U.S. Print and Related Services segment. 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 these acquired businesses are complementary to the Companys existing products and services. As a result, the addition of these businesses is expected to improve the Companys ability to serve customers, increase capacity utilization, and reduce management, procurement and manufacturing costs. The PROSA and Prospectus acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill, none of which is tax deductible. Based on the valuations, the final purchase price allocations for these 2009 acquisitions are as follows: Accounts receivable $ 2.4 Property, plant and equipment 9.2 Amortizable intangible assets 11.6 Goodwill 6.5 Accounts payable and accrued liabilities (2.5 ) Deferred taxesnet (0.6 ) Net cash paid $ 26.6 The fair values of property, plant and equipment, goodwill and intangible assets associated with the acquisitions of PROSA and Prospectus were determined to be Level 3 under the fair value hierarchy. Property, 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, b |
Restructuring and Impairment
Restructuring and Impairment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Restructuring and Impairment | Note 3. Restructuring and Impairment The Company recorded restructuring and impairment charges of $382.7 million, $1,184.7 million and $839.0 million in the years ended December31, 2009, 2008 and 2007, respectively. The charges in 2009 included $128.5 million for the impairment of goodwill, as well as charges, discounted for future cash payments, of $118.6 million for the termination of a significant long-term customer contract in the business process outsourcing reporting unit within the International segment, of which $117.2 million, $0.8 million and $0.6 million are reflected in other charges, impairment and employee terminations, respectively. Additionally in 2009, the Company recorded restructuring charges of $78.8 million for employee termination costs, other restructuring charges, including lease termination and other facility closure costs, of $32.1 million and $24.7 million of impairment charges for other long-lived assets. The charges in 2008 included $1,125.4 million for the impairment of goodwill and intangible assets, as well as $44.1 million for employee termination costs. Additionally, in 2008, the Company incurred other restructuring charges, including lease termination and other facility closure costs of $10.6 million, as well as $4.6 million of impairment charges for other long-lived assets. The charges in 2007 included $316.1 million for the write-off of the Moore Wallace, OfficeTiger and other trade names associated with the Companys decision in June 2007 to unify most of its printing and related service offerings under the single RR Donnelley brand. In addition, the 2007 charges included $436.1 million for the impairment of goodwill associated with the business process outsourcing reporting unit within the International segment. The restructuring charges recorded are based on restructuring plans that have been committed to by management and are, in part, based upon managements best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. Restructuring and Impairment Costs Charged to Results of Operations 2009 Employee Terminations Other Charges Total Restructuring Impairment Total U.S. Print and Related Services $ 36.5 $ 19.2 $ 55.7 $ 108.1 $ 163.8 International 40.5 124.3 164.8 45.9 210.7 Corporate 2.4 5.8 8.2 8.2 $ 79.4 $ 149.3 $ 228.7 $ 154.0 $ 382.7 In the fourth quarter of 2009, the Company recorded a non-cash charge of $128.5 million to reflect the impairment of goodwill, of which $93.8 million and $34.7 million are reflected in the U.S. Print and Related Services and International segments, respectively. The goodwill impairment charges of $93.8 million and $34.7 million resulted from reductions in the estimated fair value of the forms and labels and Canada reporting units, respectively, based on lower expectations for revenue due to declines in business and consumer spending and continued price pressure. Because the fair value of these reporting units was belo |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the year ended December31, 2009 and 2008 was as follows: U.S.Printand RelatedServices International Total Net book value at January1, 2008 Goodwill $ 2,952.5 $ 1,317.2 $ 4,269.7 Accumulated impairment losses (408.0 ) (596.8 ) (1,004.8 ) Total 2,544.5 720.4 3,264.9 Acquisitions 33.1 33.1 Foreign exchange and other adjustments (7.8 ) (64.2 ) (72.0 ) Impairment charge (376.4 ) (423.7 ) (800.1 ) Net book value at December31, 2008 Goodwill 2,977.8 1,253.0 4,230.8 Accumulated impairment losses (784.4 ) (1,020.5 ) (1,804.9 ) Total 2,193.4 232.5 2,425.9 Acquisitions 6.5 6.5 Foreign exchange and other adjustments (0.2 ) 29.6 29.4 Impairment charges (93.8 ) (34.7 ) (128.5 ) Net book value at December31, 2009 Goodwill 2,977.6 1,289.1 4,266.7 Accumulated impairment losses (878.2 ) (1,055.2 ) (1,933.4 ) Total $ 2,099.4 $ 233.9 $ 2,333.3 In the fourth quarters of 2009 and 2008, the Company recorded non-cash charges of $128.5 million and $800.1 million, respectively, to reflect impairment of goodwill. See Note 3 for further discussion regarding these impairment charges. Also, during the third quarter of 2008, the Company finalized its valuation of certain tax contingencies related to the 2006 acquisition of OfficeTiger. As a result, the Company recorded reductions of $15.0 million to goodwill and accrued liabilities. OfficeTigers operations are included in the International segment. The components of other intangible assets at December31, 2009 and 2008 were as follows: December31, 2009 December31, 2008 Gross Carrying Amount(1) Accumulated Amortization(1) NetBook Value Gross Carrying Amount(1) Accumulated Amortization(1) NetBook Value Trademarks, licenses and agreements $ 25.6 $ (22.3 ) $ 3.3 $ 21.9 $ (21.9 ) $ Patents 98.3 (71.4 ) 26.9 98.3 (59.1 ) 39.2 Customer relationship intangibles 1,125.0 (440.1 ) 684.9 1,106.2 (347.1 ) 759.1 Trade names 21.4 (7.2 ) 14.2 19.4 (4.7 ) 14.7 Total amortizable purchased intangible assets 1,270.3 (541.0 ) 729.3 1,245.8 (432.8 ) 813.0 Indefinite-lived trade names 18.1 18.1 18.1 18.1 Total purchased intangible assets $ 1,288.4 $ (541.0 ) $ 747.4 $ 1,263.9 $ (432.8 ) $ 831.1 (1) Inclu |
Accounts Receivable
Accounts Receivable | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Accounts Receivable | Note 5. Accounts Receivable Transactions affecting the allowance for doubtful accounts during the years ended December31, 2009, 2008 and 2007 were as follows: 2009 2008 2007 Balance, beginning of year $ 80.5 $ 63.6 $ 79.8 Provisions charged to expense 19.7 52.1 11.2 Write-offs and other (29.9 ) (35.2 ) (27.4 ) Balance, end of year $ 70.3 $ 80.5 $ 63.6 |
Inventories
Inventories | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Inventories | Note 6. Inventories The components of the Companys inventories at December31, 2009 and 2008 were as follows: 2009 2008 Raw materials and manufacturing supplies $ 229.9 $ 311.3 Work in process 190.1 183.2 Finished goods 219.6 296.6 LIFO reserve (77.8 ) (95.4 ) Total $ 561.8 $ 695.7 The Company recognized a LIFO benefit of $17.6 million in 2009 and LIFO expense of $30.6 million and $0.4 million in 2008 and 2007, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Property, Plant and Equipment | Note 7. Property, Plant and Equipment The components of the Companys property, plant and equipment at December31, 2009 and 2008 were as follows: 2009 2008 Land $ 89.6 $ 91.6 Buildings 1,140.0 1,143.1 Machinery and equipment 6,001.7 5,935.3 7,231.3 7,170.0 Less: Accumulated depreciation (4,959.9 ) (4,606.0 ) Total $ 2,271.4 $ 2,564.0 During the years ended December31, 2009, 2008 and 2007, depreciation expense was $461.6 million, $493.8 million and $451.1 million, respectively. Assets Held for Sale Primarily as a result of restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $8.7 million and $5.9 million at December31, 2009 and 2008, respectively, which were included in current assets in the Consolidated Balance Sheets at December31, 2009 and 2008 at the lower of their historical net book value or their estimated fair value, less estimated costs to sell. |
Fair Value Measurement
Fair Value Measurement | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair Value Measurement | Note 8. Fair Value Measurement Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Companys only assets and liabilities adjusted to fair value on a recurring basis are forward contracts which are valued using market exchange rates. See Note 14 for further discussion on the fair value of the Companys forward contracts as of December31, 2009 and 2008. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or impairment charges. See Note 2 for further discussion on the fair value of assets and liabilities associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition and still held at December31, 2009 are summarized below: Impairment charge Fair value measurement (Level 3) December31, 2009netbook value Long-lived assets held and used(1) $ 20.2 $ 4.0 $ 3.8 Long-lived assets held for sale(2) 5.0 6.5 6.1 Goodwill(3) 128.5 184.2 184.9 Total $ 153.7 $ 194.7 $ 194.8 (1) Long-lived assets held and used with a carrying amount of $24.2 million were written down to their fair value of $4.0 million, resulting in an impairment charge of $20.2 million for the year. The fair values of machinery and equipment, used for measuring impairment, were determined using Level 3 inputs and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to equipment and current marketplace conditions. (2) Long-lived assets held for sale with a carrying amount of $11.1 million were written down to their fair value of $6.5 million, less costs to sell of $0.4 million, resulting in an impairment charge of $5.0 million and a net book value of $6.1 million. The fair values of the land and buildings classified as held for sale were determined using Level 3 inputs and were estimated based on discussions with real estate brokers, review of comparable properties, if available, and internal expertise related to the current marketplace conditions. (3) Goodwill for the forms and labels and Canada reporting units with a carrying amount of $257.4 million and $55.3 million, respectively, was written down to its implied fair value of $163.6 million and $20.6 million, respectively, resulting in a combined impairment charge of $128.5 million for the year. The determination of the goodwill impairment was based on Level 3 inputs, which included discounted cash flow analyses, comparable marketplace fair value data, as well as managements assumptions in valuing significant tangible and intangible assets. See Note 3 for further discussion on the factors leading to the recognition of the impairment. See Note 11 for the fair value of the Companys pension and other postretirement plan assets and Note 13 for the fair value of the Companys debt. |
Accrued Liabilities
Accrued Liabilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Accrued Liabilities | Note 9. Accrued Liabilities The components of the Companys accrued liabilities at December31, 2009 and 2008 were as follows: 2009 2008 Employee-related liabilities $ 202.7 $ 231.6 Restructuring liabilities 92.2 30.0 Deferred revenue 151.4 153.5 Other 367.1 380.6 Total accrued liabilities $ 813.4 $ 795.7 Employee-related liabilities consist primarily of payroll, incentive compensation, sales commission and employee benefit accruals. Other accrued liabilities include income and other tax liabilities, interest expense accruals and miscellaneous operating accruals. The increase in restructuring liabilities is related to the termination of the long-term customer contract. The Company paid $57.5 million of this liability in January 2010. |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies | Note 10. Commitments and Contingencies As of December31, 2009, authorized expenditures on incomplete projects for the purchase of property, plant and equipment totaled approximately $54.5 million. Of this total, approximately $49.5 million has been committed. In addition, as of December31, 2009, the Company has a commitment of $20.4 million for severance payments related to restructuring activities and $99.0 million for the termination of the long-term customer contract, of which $57.5 million was paid in January 2010 and $41.6 million, subject to changes in foreign exchange rates, will be paid in January 2011. The Company transferred $43.7 million to restricted cash within other noncurrent assets on the Consolidated Balance Sheets in December 2009 for the January 2011 payment. The Company also has contractual commitments of approximately $215.3 million for outsourced services, including technology, professional, maintenance and other services. The Company has a variety of contracts with suppliers for the purchase of paper, ink and other commodities for delivery in future years at prevailing market prices. As of December31, 2009, the Company was committed to purchase $12.3 million of natural gas under these contracts. Future minimum rental commitments under non-cancelable operating leases are as follows: Year Ended December31 Amount 2010 $ 137.4 2011 108.8 2012 84.5 2013 66.5 2014 and thereafter 228.4 $ 625.6 The Company has non-cancelable operating lease commitments totaling $625.6 million extending through various periods to 2052. Rent expense was $215.0 million, $219.8 million and $219.3 million in the years ended December31, 2009, 2008 and 2007, respectively. Litigation 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 five other previously owned facilities and three 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 Supe |
Retirement Plans
Retirement Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Retirement Plans | Note 11. Retirement Plans The Company sponsors various funded and unfunded pension plans for most of its full-time employees in the U.S., Canada and certain international locations. The Company also participates in various multi-employer pension plans. Benefits are generally based upon years of service and compensation. These plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all qualified plans using actuarial cost methods and assumptions acceptable under government regulations. Most of the Companys regular full-time U.S. employees become eligible for these benefits at or after reaching age 50 while working for the Company and having 5 years of vested service. In addition to pension benefits, the Company provides certain healthcare and life insurance benefits for retired employees. Most of the Companys regular full-time U.S. employees become eligible for these benefits at or after reaching age 55 if working for the Company and having 10 years of continuous service. For employees who began employment with the Company prior to January1, 2002, the Company subsidizes coverage and funds liabilities associated with these plans through a tax-exempt trust. The assets of the trust are invested in trust-owned life insurance policies covering certain employees of the Company. The underlying assets of the policies are invested primarily in marketable equity, corporate fixed income and government securities. The pension and postretirement obligations are calculated using generally accepted actuarial methods and are measured as of December31. Actuarial gains and losses are amortized using the corridor method over the average remaining service life of active plan participants. The components of the net periodic benefit expense (income) and total expense (income) are as follows: Pension Benefits Postretirement Benefits 2009 2008 2007 2009 2008 2007 Service cost $ 70.1 $ 86.3 $ 93.1 $ 10.3 $ 12.4 $ 12.6 Interest cost 177.6 168.8 153.2 31.0 30.3 29.1 Expected return on plan assets (256.2 ) (267.3 ) (243.4 ) (15.5 ) (16.3 ) (15.2 ) Amortization of prior service credit (5.3 ) (5.2 ) (7.3 ) (14.6 ) (14.6 ) (14.6 ) Amortization of actuarial loss 8.9 0.6 3.8 (2.6 ) 0.1 5.5 Net periodic benefit expense (income) (4.9 ) (16.8 ) (0.6 ) 8.6 11.9 17.4 Curtailments (0.1 ) (5.2 ) Special termination benefit cost 0.6 Total expense (income) $ (4.9 ) $ (16.9 ) $ (5.2 ) $ 8.6 $ 11.9 $ 17.4 Weighted average assumption used to calculate net periodic benefit expense: Discount rate 6.8 % 6.4 % 5.7 % 6.9 % 6.3 % |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes | Note 12. Income Taxes Income taxes have been based on the following components of earnings (loss) from continuing operations before income taxes for the years ended December31, 2009, 2008 and 2007: 2009 2008 2007 U.S. $ 123.9 $ 200.5 $ 516.3 Foreign (30.8 ) (469.8 ) (424.9 ) Total $ 93.1 $ (269.3 ) $ 91.4 The components of income tax expense (benefit) from continuing operations for the years ended December31, 2009, 2008 and 2007 were as follows: 2009 2008 2007 Federal: Current $ 95.0 $ (49.0 ) $ 189.8 Deferred (35.5 ) 2.4 (1.0 ) State: Current 21.1 16.2 17.2 Deferred (2.5 ) (3.6 ) (18.7 ) Foreign: Current 52.5 52.6 18.7 Deferred (16.1 ) (102.5 ) (69.5 ) Total $ 114.5 $ (83.9 ) $ 136.5 The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Companys effective tax rate: 2009 2008 2007 Federal statutory rate 35.0 % 35.0 % 35.0 % International reorganization 16.9 89.4 Restructuring and impairment charges 91.6 (113.7 ) 172.7 Foreign tax rate differential (51.7 ) 7.0 (50.5 ) State and local income taxes, net of U.S. federal income tax benefit 10.2 (8.3 ) 16.3 Adjustment of uncertain tax positions 6.5 6.9 (14.4 ) Adjustment of interest on uncertain tax positions (4.7 ) 3.6 14.9 Change in valuation allowances 27.6 5.4 (9.3 ) Domestic manufacturing deduction (7.1 ) (11.5 ) Other (1.3 ) 5.9 (3.9 ) Effective income tax rate 123.0 % 31.2 % 149.3 % Included in 2009 is an expense of $15.6 million relating to the reorganization of certain entities within the international segment. Included in 2008 is a benefit of $228.8 million related to the decline in value and reorganization of certain entities within the International segment and $38.0 million from the recognition of uncertain tax positions upon the final settlement of certain U.S. federal income tax audits for the years 2000-2002. Included in 2007 is a benefit of $9.3 million from the reduction in net deferred tax liabilities due to a decrease in the statutory tax rate in the United Kingdom. Deferred income taxes The significant deferred tax assets and liabilities at December31, 2009 and 2008 were as follows: 2009 2008 Deferred tax assets: Pensions and postretirement $ 321.7 $ 304.3 Accrued liabilities 193.5 148.6 Net operating loss and other tax carryforwards 306.8 277.0 Other 90.0 89.1 Total deferred tax assets 912.0 819.0 Valuation allowance (277.5 ) (224.7 |
Debt
Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Debt | Note 13. Debt The Companys debt at December31, 2009 and 2008 consists of the following: 2009 2008 Commercial paper $ $ 289.8 Credit facility borrowings 200.0 3.75% senior notes due April1, 2009 400.0 4.95% senior notes due May15, 2010 325.7 499.6 5.625% senior notes due January15, 2012 158.5 624.5 4.95% senior notes due April1, 2014 599.0 598.8 5.50% senior notes due May15, 2015 499.6 499.5 8.60% senior notes due August15, 2016 345.3 6.125% senior notes due January15, 2017 621.5 621.0 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 199.3 199.2 8.820% debentures due April15, 2031 68.9 68.9 Other, including capital leases 23.7 44.6 Total debt 3,322.4 4,126.8 Less: current portion (339.9 ) (923.5 ) Long-term debt $ 2,982.5 $ 3,203.3 The fair value of debt was determined to be Level 2 under the fair value hierarchy and was based upon the interest rates available to the Company for borrowings with similar terms and maturities. The fair value of the Companys debt was greater than its book value by approximately $177.9 million at December31, 2009 and lower by $556.2 million at December31, 2008. 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. If the Company experiences certain downgrades in its credit ratings, these notes would be subject to a coupon step-up resulting in higher interest payments. On August26, 2009, the Company issued $350.0 million of 8.60% senior notes due August15, 2016. The net proceeds from the offering, along with borrowings under the Companys revolving credit facility (the Facility) and cash on hand, were used to repurchase $466.4 million of the 5.625% senior notes due January15, 2012 and $174.2 million of the 4.95% senior notes due May15, 2010. These repurchases resulted in a pre-tax loss on debt extinguishment of $10.3 million, which is reflected in investment and other income (expense) on the Consolidated Statements of Operations for the year ended December31, 2009. As of December31, 2009, the Company had no borrowings outstanding under the Facility. The weighted average interest rate on borrowings during the year ended December31, 2009 was 1.3%. Additionally, the Company had $138.7 million in credit facilities (the Foreign Facilities) at its foreign locations, most of which are uncommitted. As of December31, 2009 and 2008, total borrowings under the Facility and the Foreign Facilities (the Combined Facilities) were $12.7 million and $231.9 million, respectively. As of December31, 2009, the Company had $44.1 million in outstanding letters of credit, of which $37.8 million reduced availability under the Combined Facilities. At December31, 2009, approximately $2.1 billion was available under the Co |
Derivatives
Derivatives | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivatives | Note 14. Derivatives All derivatives are recorded as other assets or other liabilities on the 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 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 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 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, and accordingly, the fair value gains or losses from these foreign currency derivatives are recognized currently in the 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 December31, 2009 and 2008 was $437.0 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 and are valued using market exchange rates. At December31, 2009 and 2008, the total fair value of the Companys forward contracts and the accounts in the Consolidated Balance Sheets in which the fair value amounts are included are shown below: |
Guarantees
Guarantees | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Guarantees | Note 15. Guarantees The Company has unconditionally guaranteed the repayment of certain loans and related interest and fees for certain of its consolidated subsidiaries. The guarantees continue until the loans, including accrued interest and fees, have been paid in full. The maximum amount of the guarantees may vary, but is limited to the sum of the total due and unpaid principal amounts plus related interest and fees. Additionally, the maximum amount of the guarantees, certain of which are denominated in foreign currencies, will vary based on fluctuations in foreign exchange rates. As of December31, 2009, the maximum principal amount guaranteed was approximately $80.2 million. |
Earnings per Share
Earnings per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earnings per Share | Note 16. Earnings per Share 2009 2008 2007 Numerator: Net loss attributable to RR Donnelley common shareholders $ (27.3 ) $ (189.9 ) $ (48.9 ) Denominator: Weighted average number of common shares outstanding 205.2 210.2 218.0 Dilutive options and awards(a) Diluted weighted average number of common shares outstanding 205.2 210.2 218.0 Net loss per share attributable to RR Donnelley common shareholders: Basic $ (0.13 ) $ (0.90 ) $ (0.22 ) Diluted $ (0.13 ) $ (0.90 ) $ (0.22 ) Cash dividends paid per common share $ 1.04 $ 1.04 $ 1.04 (a) Diluted net loss per share attributable to RR Donnelley common shareholders takes into consideration the dilution of certain unvested restricted stock awards and unexercised stock option awards. For the years ended December31, 2009, 2008 and 2007, common stock equivalents of 9.7million, 5.4million and 4.9million, respectively, were excluded as their effect would be anti-dilutive. For the years ended December31, 2009, 2008 and 2007, restricted stock units of 5.5million, 1.8million and 1.4million, respectively, were excluded as their effect would be anti-dilutive. For the years ended December31, 2009, 2008 and 2007, options to purchase 4.2million shares, 3.6million shares and 3.5million shares, respectively, were anti-dilutive because the option exercise price exceeded the fair value of the stock. During the year ended December31, 2009, no shares of common stock were purchased by the Company in the open market. During the year ended December31, 2008, the Company purchased in the open market 10.0million shares of its common stock at a total cost of $278.8 million. During the year ended December31, 2007, the Company purchased in the open market approximately 7.7million shares of its common stock at a total cost of $309.5 million. |
Stock and Incentive Programs fo
Stock and Incentive Programs for Employees | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Stock and Incentive Programs for Employees | Note 17. Stock and Incentive Programs for Employees 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 Company estimates the fair value of share-based awards on the date of grant, using an option-pricing model where applicable. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three to four years for restricted stock awards, performance share units and stock options. The Company estimated the number of awards expected to vest based, in part, on historical forfeiture rates and also based on managements expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Share-Based Compensation Expense The total compensation expense related to all share-based compensation plans was $24.0 million, $21.9 million and $27.9 million for the years ended December31, 2009, 2008 and 2007, respectively. The income tax benefit related to share-based compensation expense was $9.6 million, $8.8 million and $11.2 million for the years ended December31, 2009, 2008 and 2007. As of December31, 2009, $32.7 million of total unrecognized compensation cost related to share-based compensation is expected to be recognized over a weighted-average period of 2.3 years. The total unrecognized share-based compensation cost to be recognized in future periods as of December31, 2009 does not consider the effect of share-based awards that may be issued in subsequent periods. During the year ended December31, 2007, the Company executed separation agreements with certain members of management. The agreements stated that all remaining unvested share-based awards previously granted to these individuals became fully vested upon their separation date. The Company recorded $3.3 million of restructuring expense to recognize the remaining unvested portion of these awards for the year ended December31, 2007. In addition, the Company recorded $0.5 million for the year ended December31, 2007, of incremental restructuring expense upon the modification of these awards to reflect their increase in fair value from the grant date. Share-Based Compensation Plans The Company has one share-based compensation plan available under which it may grant future awards, as described below, and seven terminated or expired share-based compensation plans under which awards remain outstanding. RR Donnelley 2004 Performance Incentive Plan The 2004 Performance Incentive Plan (the 2004 PIP) was approved by shareholders to provide incentives to key employees of the Company and its subsidiaries. Awards under the 2004 PIP are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock units, restricted stock awards, cash or stock bonuses and st |
Preferred Stock
Preferred Stock | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Preferred Stock | Note 18. Preferred Stock The Company has two million shares of $1.00 par value preferred stock authorized for issuance. The Board of Directors may divide the preferred stock into one or more series and fix the redemption, dividend, voting, conversion, sinking fund, liquidation and other rights. The Company has no present plans to issue any preferred stock. |
Segment Information
Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Segment Information | Note 19. 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. The U.S. Print and Related Services segment accounted for approximately 75% of the Companys consolidated net sales in 2009. 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, North America and Asia. The International segment accounted for approximately 25% of the Companys consolidated net sales in 2009. 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 consolidated financial statements. Total Sales Intersegment Sales Net Sales Income(loss) from continuing operations Assets of Continuing Operations Depreciation and Amortization Capital Expenditures Year ended December31, 2009 U.S. Print and Related Services $ 7,464.5 $ (27.5 ) $ 7,437.0 $ 489.2 $ 6,317.5 $ 422.2 $ 101.4 Int |
Geographic Area and Product Inf
Geographic Area and Product Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Geographic Area and Product Information | Note 20. Geographic Area and Product Information The table below presents net sales and long-lived assets by geographic region. The amounts in this table differ from the segment data presented in Note 19 because each operating segment includes operations in multiple geographic regions, based on the Companys management reporting structure. U.S. Europe Asia Other Combined 2009 Net sales $ 7,647.1 $ 1,063.9 $ 470.5 $ 675.9 $ 9,857.4 Long-lived assets(1) 2,079.9 282.0 169.0 175.1 2,706.0 2008 Net sales $ 8,938.4 $ 1,409.6 $ 509.7 $ 723.9 $ 11,581.6 Long-lived assets(1) 2,345.6 276.8 180.9 153.0 2,956.3 2007 Net sales $ 8,883.2 $ 1,563.4 $ 457.5 $ 683.0 $ 11,587.1 Long-lived assets(1) 3,271.2 356.2 156.2 193.7 3,977.3 (1) Includes net property, plant and equipment, prepaid pension cost and other noncurrent assets. Products and services 2009 Net Sales 2008 Net Sales 2007 Net Sales Magazines, catalogs and retail inserts $ 2,487.7 $ 3,183.7 $ 2,879.5 Books and directories 1,979.3 2,165.0 2,465.2 Variable printing 1,454.0 1,553.9 1,639.9 Forms and labels 1,105.2 1,242.5 1,251.9 Commercial printing 624.4 746.1 797.9 Financial print 487.8 645.7 685.0 Global Turnkey Solutions 321.6 455.1 468.5 Office products 228.7 271.7 107.7 Print management 236.7 201.3 274.4 Total products 8,925.4 10,465.0 10,570.0 Logistics services 508.7 667.0 569.9 Premedia and related services 160.9 178.7 166.4 Business process outsourcing and other 262.4 270.9 280.8 Total services 932.0 1,116.6 1,017.1 Total net sales $ 9,857.4 $ 11,581.6 $ 11,587.1 |
New Accounting Pronouncements
New Accounting Pronouncements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
New Accounting Pronouncements | Note 21. New Accounting Pronouncements In June 2009, the Financial Accounting Standards Board (FASB) issued The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (GAAP) (Codification). The Codification is the single official source of authoritative U.S. accounting and reporting standards applicable for all nongovernmental entities, with the exception of guidance issued by the SEC. The Codification did not change GAAP, but organized it into an online research system sorted by individual accounting Topics, which are further divided into Subtopics. The FASB now issues new standards in the form of Accounting Standards Updates. The Codification is effective for financial statements issued for periods ending after September15, 2009. The adoption of the Codification did not have a material impact on the Companys consolidated financial position, annual results of operations or cash flows. In September 2006, the FASB issued Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820), which was adopted in the first quarter of 2008 for financial assets and the first quarter of 2009 for non-financial assets. This Topic clarified the definition of fair value, established a framework for measuring fair value and expanded the disclosures on fair value measurements. The adoption of ASC 820 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 Accounting Standards Codification 805 Business Combinations (ASC 805), which the Company adopted as of January1, 2009. ASC 805 retained the requirement 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. It continued to require the identification and recognition of intangible assets separate from goodwill and was required to be adopted for acquisitions consummated after December31, 2008, with certain provisions applied to earlier acquisitions. The adoption of ASC 805 did not have a material impact on the Companys consolidated financial position, annual results of operations or cash flows for the year ended December31, 2009. However, the Company expects that its adoption will reduce the Companys operating earnings over time 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 Accounting Standards Codification 810-10-65-1 (ASC 810-10-65-1) within the Consolidation Topic, which amended the accounting for and disclosure of the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This guidance clarified the definition and classification of a noncontrolling interest, revised the presentation of noncontrolling interests in the consolidated income statement, established a single method o |
Subsequent Events
Subsequent Events | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Subsequent Events | Note 22. Subsequent Events The Company evaluated and disclosed material subsequent events in the accompanying consolidated financial statements and footnotes through February24, 2010, the date of issuance of its Annual Report on Form 10-K for the year ended December31, 2009. On February 23, 2010, the Company announced that it had signed a definitive agreement to acquire Bowne Co., Inc. (Bowne) for approximately $481 million in cash. Bowne, a provider of shareholder and marketing communication services, is headquartered in New York, New York, and has operations in North America, Latin America, Europe and Asia. The acquisition is expected to close in the second half of 2010 and is subject to customary closing conditions, including regulatory approval and approval of Bowne shareholders. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 19, 2010
| Jun. 30, 2009
| |
Trading Symbol | RRD | ||
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 Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 205,474,233 | ||
Entity Public Float | $2,378,909,775 |