Profile: R.R. Donnelley & Sons Company (RRD.O)

R.R. Donnelley & Sons Company (RR Donnelley) is a service provider of print and related services, including business process outsourcing. The Company provides products and solutions in commercial printing, direct mail, financial printing, print fulfillment, labels, forms, logistics, call centers, transactional print-and-mail, print management, online services, digital photography, color services, and content and database management to customers in the publishing, healthcare, advertising, retail, technology, financial services and many other industries. On January 2, 2009, the Company acquired the assets of PROSA, a Web printing company located in Santiago, Chile. PROSA’s operations include producing magazines, catalogs, retail inserts and soft-cover textbooks. On March 14, 2008, the Company acquired Pro Line Printing, Inc. (Pro Line), a multi-facility, privately held producer of newspaper inserts headquartered in Irving, Texas. On December 27, 2007, the Company acquired Cardinal Brands, Inc. (Cardinal Brands), a designer, developer and manufacturer of document-related business, consumer and hobby products. Cardinal Brands has manufacturing operations in the United States and Mexico. Cardinal Brands’ operations are included in the United States Print and Related Services segment.

In June 2009, the Company announced the acquisition of Prospectus Central, LLC. Prospectus Central has powered RR Donnelley's RightProspectus offering, which provides mutual fund companies, variable annuity companies, retirement product companies, broker/dealers and clearing firms with alternatives for distributing prospectuses to investors. With this acquisition, RR Donnelley gains access to Prospectus Central's technology, RightProspectus, which is a prospectus e-delivery solution. This compliance delivery platform includes a document repository, powered by Prospectus Central, and an online e-delivery and consent management application.

United States Print and Related Services

The Company’s United States Print and Related Services segment includes the Company’s United States printing operations, managed as one integrated platform, along with related logistics, premedia and print-management services. This segment’s 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 United States Print and Related Services segment accounted for approximately 75% of the Company’s consolidated net sales during the year ended December 31, 2008.

International

RR Donnelley’s International segment includes the Company’s non- United States printing operations in Asia, Europe, Latin America and Canada. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management 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. The International segment accounted for approximately 25% of the Company’s consolidated net sales during 2008.

Corporate

The Company’s Corporate segment consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, information technology, human resources, certain facility costs and last-in first-out (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.