Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

As a worldwide marketing solutions partner, Quad leverages its 50-year heritage of platform excellence, innovation, strong culture and social purpose to create a better way for its clients, employees and communities. The Company’s operating and reportable segments are aligned with how the chief operating decision maker of the Company currently manages the business. The Company’s operating and reportable segments, including their product and service offerings, and a “Corporate” category are as follows:

•United States Print and Related Services

•International

•Corporate

United States Print and Related Services

The United States Print and Related Services segment is predominantly comprised of the Company’s United States printing operations and is managed as one integrated platform. This includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products and global paper procurement, together with marketing and other complementary services, including consumer insights, audience targeting, personalization, media planning and placement, process optimization, campaign planning and creation, pre-media production, videography, photography, digital execution, print execution and logistics. This segment also includes the manufacture of ink.

International

The International segment consists of the Company’s printing operations in Europe and Latin America, including operations in England, France, Germany, Poland, Argentina, Colombia, Mexico and Peru, as well as investments in printing operations in Brazil and India. This segment provides printed products and marketing and other complementary services consistent with the United States Print and Related Services segment. As of March 31, 2021, the Company has no unrestricted subsidiaries as defined in the Company’s Senior Unsecured Notes indenture.

Corporate

Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal and finance, as well as certain expenses and income from frozen employee retirement plans, such as pension benefit plans.

The following is a summary of segment information for the three months ended March 31, 2021 and 2020:

	Net Sales				Operating Income (Loss) from Continuing Operations		Restructuring, Impairment and Transaction- Related Charges
	Products		Services
Three months ended March 31, 2021
United States Print and Related Services	$	459.9	$	174.7	$	32.5	$	1.1
International	66.1		5.1		1.5		0.8
Total operating segments	526.0		179.8		34.0		1.9
Corporate	—		—		(13.0)		0.7
Total	$	526.0	$	179.8	$	21.0	$	2.6
Three months ended March 31, 2020
United States Print and Related Services	$	563.6	$	173.0	$	16.3	$	20.8
International	81.4		4.5		0.3		1.3
Total operating segments	645.0		177.5		16.6		22.1
Corporate	—		—		(11.6)		0.7
Total	$	645.0	$	177.5	$	5.0	$	22.8

Restructuring, impairment and transaction-related charges for the three months ended March 31, 2021 and 2020, are further described in Note 5, “Restructuring, Impairment and Transaction-Related Charges,” and are included in the operating income (loss) from continuing operations results by segment above.

A reconciliation of operating income (loss) from continuing operations to earnings (loss) from continuing operations before income taxes and equity in loss of unconsolidated entity as reported in the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020, was as follows:

	Three Months Ended March 31,
	2021		2020
Operating income from continuing operations	$	21.0	$	5.0
Less: interest expense	14.5		18.1
Less: net pension income	(4.1)		(2.7)
Less: gain on debt extinguishment	—		(0.6)
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated entity	$	10.6	$	(9.8)