DFS Annual Report

Information by Segment The following tables summarize net sales, income (loss) from operations and certain items impacting comparability within each of the operating segments and Corporate. U.S. Year Ended December 31, 2015 2014 (in millions, except percentages) Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900.8 $916.3 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160.3 175.7 Operating margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.8% 19.2% Restructuring, impairment and other charges-net . . . . . . . . . . . . . 3.5 2.5 Gain on sale of building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 6.1 Net Sales for the Year Ended December 31 Reporting unit 2015 2014 $ Change % Change (in millions, except percentages) Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $517.4 $526.8 $ (9.4) (1.8%) Investment Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339.3 348.0 (8.7) (2.5%) Language Solutions and other . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 41.5 2.6 6.3% Total U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900.8 $916.3 $(15.5) (1.7%) Net sales for the U.S. segment for the year ended December 31, 2015 were $900.8 million, a decrease of $15.5 million, or 1.7%, compared to the year ended December 31, 2014. Net sales decreased due to lower capital markets and investment markets volume and price pressures. An analysis of net sales for the U.S. segment by reporting unit follows: • Capital Markets: Sales decreased primarily due to lower transactional and data and analytics volume, partially offset by an increase in compliance and virtual data room services. • Investment Markets: Sales decreased due to lower healthcare and mutual funds volume and price pressures, partially offset by an increase in content management services volume. • Language Solutions and other: Sales increased due to higher translation services volume, mostly offset by lower commercial print volume. U.S. segment income from operations decreased $15.4 million or 8.8% for the year ended December 31, 2015 as compared to the year ended December 31, 2014 primarily due to the 2014 $6.1 million gain on a sale of a building, the decreases in capital markets transactions volume and investment markets volume, as well as price pressures, partially offset by the impact of cost control initiatives. Operating margins for the year ended December 31, 2015 decreased from 19.2% to 17.8% for the year ended December 31, 2015 as compared to the year ended December 31, 2014. The 2014 building sale and higher restructuring, impairment and other charges negatively impacted margins by 0.8 percentage points in 2015 compared to 2014. Operating margins also decreased due to the lower capital markets transactions volume, unfavorable mix and price pressures, partially offset by the impact of cost control initiatives. International Year Ended December 31, 2015 2014 (in millions, except percentages) Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148.7 $163.8 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 17.2 Operating margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3% 10.5% Restructuring, impairment and other charges-net . . . . . . . . . . . . . . . 0.9 2.3 37