Acquisitions

On July 2, 2010, the Company completed the acquisition of World Color Press, a provider of comprehensive print, digital and related services to retailers, catalogers, publishers, branded-goods companies and other businesses in North America and Latin American countries. The World Color Press acquisition was completed for $93.3 million in cash and $908.6 million in Company class A common stock. The Company also borrowed $950.0 million of debt to fund a portion of the transaction and to refinance the World Color Press debt, including a $250.0 million advance from a revolving credit facility and $700.0 million from a term loan. The historical World Color Press United States and Canadian operations are included within the North American Print and Related Services segment, and the historical World Color Press Latin American operations are included within the International segment. In connection with the closing of the acquisition, the Company registered its class A common stock with the SEC under the Securities Exchange Act of 1934, as amended, and on July 6, 2010, Quad/Graphics' class A common stock commenced trading on The New York Stock Exchange, LLC ("NYSE") under the symbol "QUAD".

The following unaudited pro forma combined financial information presents the Company's results as though Quad/Graphics and World Color Press had combined at January 1, 2010. The pro forma information has been prepared with the following considerations:


(1)	The unaudited pro forma condensed consolidated financial information has been prepared using the acquisition method of accounting under existing GAAP. Quad/Graphics is the acquirer for accounting purposes.


(2)	World Color Press historical amounts have been converted from Canadian generally accepted accounting principles to GAAP.


(3)	The pro forma combined financial information does not reflect any operating synergy savings that the combined company may achieve as a result of the acquisition, the costs necessary to achieve these operating synergy savings or additional charges necessary as a result of the integration, or the tax effects for the Company's transition to a C corporation.



	Three Months Ended June 30,						Six Months Ended June 30,
	2011 (actual)			2010 (pro forma)			2011 (actual)			2010 (pro forma)
Pro forma net sales	$	1,070.5		$	1,075.3		$	2,172.8		$	2,170.9
Pro forma net loss attributable to common shareholders	(10.3		)	(5.3		)	(17.6		)	(23.1		)
Pro forma diluted loss per share attributable to common shareholders	(0.22		)	(0.11		)	(0.37		)	(0.49		)