Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Quad is a global marketing experience (MX) company that helps brands make direct consumer connections, from household to in-store to online. The Company’s mission is to provide a better marketing experience for its clients, so they can focus on delivering the best customer experience to theirs. 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 print execution and logistics for retail inserts, catalogs, long-run publications, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, as well as other commercial and specialty printed products, along with global paper procurement, and marketing and other complementary services, such as data intelligence and analytics, technology solutions, media planning, placement and optimization, creative strategy and content creation, as well as execution in non-print channels (e.g., digital and broadcast). 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, Colombia, Mexico and Peru. This segment provides printed products and marketing and other complementary services consistent with the United States Print and Related Services segment.

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, 2024 and 2023:

	Net Sales				Operating Income (Loss)		Restructuring, Impairment and Transaction- Related Charges
	Products		Services
Three months ended March 31, 2024
United States Print and Related Services	$	435.9	$	143.0	$	(1.3)	$	31.6
International	71.3		4.6		3.4		0.8
Total operating segments	507.2		147.6		2.1		32.4
Corporate	—		—		(12.8)		0.1
Total	$	507.2	$	147.6	$	(10.7)	$	32.5
Three months ended March 31, 2023
United States Print and Related Services	$	504.5	$	153.1	$	7.3	$	22.5
International	103.4		5.5		7.7		2.6
Total operating segments	607.9		158.6		15.0		25.1
Corporate	—		—		(14.9)		0.9
Total	$	607.9	$	158.6	$	0.1	$	26.0

Restructuring, impairment and transaction-related charges for the three months ended March 31, 2024 and 2023, are further described in Note 3, “Restructuring, Impairment and Transaction-Related Charges,” and are included in the operating income (loss) results by segment above.

A reconciliation of operating income (loss) to loss before income taxes as reported in the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023, was as follows:

	Three Months Ended March 31,
	2024		2023
Operating income (loss)	$	(10.7)	$	0.1
Less: interest expense	15.2		16.3
Less: net pension income	(0.2)		(0.4)
Loss before income taxes	$	(25.7)	$	(15.8)