DFS Annual Report

UNAUDITED INTERIM FINANCIAL INFORMATION (In millions, except per-share data) Year Ended December 31, First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2016 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240.1 $298.0 $224.4 $221.0 $ 983.5 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.5 59.0 18.0 6.5 106.0 Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.4 36.3 10.2 (0.8) 59.1 Net earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Basic net earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.41 1.12 0.31 (0.02) 1.81 Diluted net earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.41 1.12 0.31 (0.02) 1.80 Weighted average number to common shares outstanding (a) Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.4 32.4 32.4 32.6 32.6 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.4 32.4 32.4 32.6 32.8 2015 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270.4 $308.9 $231.6 $238.6 $1,049.5 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.8 66.6 28.2 38.1 172.7 Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.8 40.5 16.8 23.2 104.3 Basic and diluted net earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.73 1.25 0.52 0.72 3.22 Basic and diluted common shares outstanding(a) . . . . . . . . . . . . . . . . . . . . . . . . 32.4 32.4 32.4 32.4 32.4 (a) On October 1, 2016, RRD distributed approximately 26.2 million shares of Donnelley Financial common stock to RRD shareholders in connection with the spin-off of Donnelley Financial, with RRD retaining approximately 6.2 million shares of Donnelley Financial common stock. For periods prior to the Separation, basic and diluted earnings per share were calculated using the number of shares distributed and retained by RRD, totaling 32.4 million. The same number of shares was used to calculate basic and diluted earnings per share since there were no Donnelley Financial equity awards outstanding prior to the spin-off. Includes the following significant items: Pre-tax After-tax First Quarter Second Quarter Third Quarter Fourth Quarter Full Year First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Year ended December 31, 2016 Restructuring, impairment and other charges—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 1.3 $ 1.7 $1.8 $5.4 $ 0.4 $ 0.8 $ 1.0 $1.1 $3.3 Spin-off related transaction expenses . . . . . . . . . . . — — — 4.9 4.9 — — — 3.0 3.0 Share-based compensation expense . . . . . . . . . . . . . 0.3 0.7 0.2 1.3 2.5 0.2 0.4 0.1 0.8 1.5 Pre-tax After-tax First Quarter Second Quarter Third Quarter Fourth Quarter Full Year First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Year ended December 31, 2015 Restructuring, impairment and other charges—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.5 $1.4 $1.4 $1.1 $4.4 $0.3 $0.9 $0.9 $0.7 $2.8 Share-based compensation expense . . . . . . . . . . . . . 0.4 0.6 0.3 0.3 1.6 0.2 0.4 0.2 0.2 1.0 F-46