SEGMENT REPORTING

12 Months Ended

Dec. 31, 2011

SEGMENT REPORTING

13. SEGMENT REPORTING

Our segments meeting the quantitative thresholds to be considered reportable are Shared Mail, Neighborhood Targeted and Free-standing Inserts (“FSI”). 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 NCH Marketing Services, Inc., Valassis Canada, Inc., Promotion Watch, direct mail, analytics, digital and in-store. 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 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 in all cases to reportable segments and are not used to assess the performance of a segment.

The following table sets forth, by segment, revenues, depreciation/amortization and segment profit for the indicated periods:

	Years Ended December 31,
(in millions of U.S. dollars)	Shared Mail		Neighborhood Targeted		FSI		International, Digital Media & Services		Total
2011
Revenues from external customers	$	1,350.8	$	374.7	$	316.0	$	194.5	$	2,236.0
Intersegment revenues		16.8		50.4		39.2		0.4		106.8
Depreciation/amortization		36.8		4.2		12.7		7.0		60.7
Segment profit	$	191.9	$	7.7	$	14.1	$	24.3	$	238.0
2010
Revenues from external customers	$	1,307.2	$	479.9	$	367.6	$	178.8	$	2,333.5
Intersegment revenues		16.8		27.6		39.7		0.4		84.5
Depreciation/amortization		41.0		4.3		12.8		3.3		61.4
Segment profit	$	156.8	$	20.6	$	24.9	$	22.7	$	225.0
2009
Revenues from external customers	$	1,279.1	$	444.7	$	361.4	$	159.0	$	2,244.2
Intersegment revenues		18.6		26.1		37.0		1.6		83.3
Depreciation/amortization		49.2		4.1		12.0		2.5		67.8
Segment profit	$	110.2	$	36.3	$	11.5	$	25.0	$	183.0

The following table provides a reconciliation of total segment profit to earnings from operations:

	Year Ended December 31,
(in millions of U.S. dollars)	2011			2010		2009
Total segment profit	$	238.0		$	225.0	$	183.0
Unallocated amounts:
Intangible asset impairment		(7.1	)		—		—
Postemployment and other reorganization costs		(6.9	)		—		—
Gain from litigation settlement		—			490.1		—
Earnings from operations	$	224.0		$	715.1	$	183.0

Domestic and foreign revenues were as follows:

	Year Ended December 31,
(in millions of U.S. dollars)	2011		2010		2009
United States	$	2,182.6	$	2,282.0	$	2,193.0
Foreign		53.4		51.5		51.2
Revenues	$	2,236.0	$	2,333.5	$	2,244.2

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

	December 31,
(in millions of U.S. dollars)	2011		2010
United States	$	140.7	$	166.8
Foreign		8.2		8.8
Plant, property and equipment, net	$	148.9	$	175.6