SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

SEGMENT REPORTING

SEGMENT REPORTING

Our segments meeting the quantitative thresholds to be considered reportable are Shared Mail, Free-standing Inserts ("FSI") and Neighborhood Targeted. All other lines of business fall below a materiality threshold and are, therefore, combined together in an “other” segment named International, Digital Media & Services. These business lines include Brand.net, a Valassis Digital Company, NCH Marketing Services, Inc., our coupon clearing and analytics business, Valassis Canada, Inc., Promotion Watch and our in-store business. Our reportable segments are strategic business units that offer different products and services and are subject to regular review by our chief operating decision-maker. They are managed separately because each business requires different executional strategies and caters to different client marketing needs.

The accounting policies of the segments are the same as those described in the 2012 Form 10-K and Note 1, Basis of Presentation and Significant Accounting Policies. We evaluate reportable segment performance based on segment profit, which we define as earnings from operations excluding unusual or infrequently occurring items. Assets are not allocated to reportable segments and are not used to assess the performance of a reportable segment.

The following tables set forth, by segment, revenues, depreciation/amortization and segment profit (loss) for the indicated periods:

	Three Months Ended
	March 31,
(in millions of U.S. dollars)	Shared Mail		FSI		Neighborhood Targeted			International, Digital Media & Services			Total
2013
Revenues from external customers	$	327.1	$	85.7	$	23.3		$	46.4		$	482.5
Intersegment revenues	$	4.4	$	10.1	$	18.0		$	—		$	32.5
Depreciation/amortization	$	6.8	$	3.5	$	1.2		$	1.8		$	13.3
Segment profit (loss)1	$	38.9	$	11.1	$	(4.4	)	$	(3.9	)	$	41.7
2012
Revenues from external customers	$	328.1	$	76.3	$	72.2		$	42.0		$	518.6
Intersegment revenues	$	4.5	$	10.0	$	13.0		$	—		$	27.5
Depreciation/amortization	$	8.3	$	3.2	$	1.1		$	2.1		$	14.7
Segment profit (loss)1	$	42.4	$	5.4	$	(1.6	)	$	2.7		$	48.9

¹ Total segment profit is equivalent to earnings from operations for the three months ended March 31, 2013 and 2012.

Domestic and foreign revenues were as follows:

	Three Months Ended
	March 31,
(in millions of U.S. dollars)	2013		2012
United States	$	471.6	$	506.2
Foreign	10.9		12.4
Revenues	$	482.5	$	518.6

Domestic and foreign long-lived assets (property, plant and equipment, net) were as follows:

(in millions of U.S. dollars)	March 31, 2013		December 31, 2012
United States	$	105.8	$	118.1
Foreign	7.8		7.7
Property, plant and equipment, net	$	113.6	$	125.8