DFIN 2017 Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated) Condensed Consolidating Statements of Operations Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $530.2 $106.6 $ (8.2) $ 628.6 Products net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 381.8 44.5 (5.4) 420.9 Total net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 912.0 151.1 (13.6) 1,049.5 Services cost of sales (exclusive of depreciation and amortization) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 230.7 68.4 (7.2) 291.9 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) . . . . . . . . . — 38.1 2.3 — 40.4 Products cost of sales (exclusive of depreciation and amortization) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 208.8 28.5 (6.4) 230.9 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) . . . . . . . . . — 68.2 0.1 — 68.3 Total cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 545.8 99.3 (13.6) 631.5 Selling, general and administrative expenses (exclusive of depreciation and amortization) . . . . . . . . . . . . . . . . . . . . . . . . — 168.1 31.1 — 199.2 Restructuring, impairment and other charges-net . . . . . . . . . . . . — 3.5 0.9 — 4.4 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . — 37.3 4.4 — 41.7 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 157.3 15.4 0.0 172.7 Interest expense-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1.1 — — 1.1 Investment and other income-net . . . . . . . . . . . . . . . . . . . . . . . . — — (0.1) — (0.1) Earnings before income taxes and equity in net income of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 156.2 15.5 0.0 171.7 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 63.8 3.6 — 67.4 Earnings before equity in net income of subsidiaries . . . . . . . — 92.4 11.9 0.0 104.3 Equity in net income of subsidiaries . . . . . . . . . . . . . . . . . . . . . . 104.3 11.9 — (116.2) — Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104.3 $104.3 $ 11.9 $(116.2) $ 104.3 Comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . $124.3 $124.3 $ 4.4 $(128.7) $ 124.3 F-42