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RR Donnelley 2004_10K Document Transcript

  • 1. DONNELLEY R R & SONS CO 10-K 03/14/2005 R. R. DONNELLEY & SONS COMPANY Delaware 36-1004130 (State or other jurisdiction of incorporation (I.R.S. Employer Identification No.) or organization) 60,601 77 West Wacker Drive, Chicago, Illinois (Address of principal executive offices) (ZIP Code) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 2. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Title of each Class Name of each exchange on which registered Common (Par Value $1.25) New York, Chicago, Pacific and Toronto Stock Exchanges Preferred Stock Purchase Rights New York, Chicago, Pacific and Toronto Stock Exchanges ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 3. DONNELLEY R R & SONS CO 10-K 03/14/2005 TABLE OF CONTENTS Form 10-K Name of Item Page Item No. Part I Item 1. Business 3 Item 2. Properties 8 Item 3. Legal Proceedings 8 Item 4. Submission of Matters to a Vote of Security 9 Holders Executive Officers of R.R. Donnelley & 10 Sons Company Part II Item 5. Market for R.R. Donnelley & Sons Company s 12 Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Item 6. Selected Financial Data 12 Item 7. Management s Discussion and Analysis of 13 Financial Condition and Results of Operations Item 7A. Quantitative and Qualitative Disclosures 34 about Market Risk Item 8. Financial Statements and Supplementary 35 Data Item 9. Changes in and Disagreements with Accountants 35 on Accounting and Financial Disclosure Item 9A. Controls and Procedures 35 Item 9B. Other Information 37 Part III Item 10. Directors and Executive Officers of R.R. 38 Donnelley & Sons Company Item 11. Executive Compensation 38 Item 12. Security Ownership of Certain Beneficial 38 Owners and Management and Related Stockholder Matters Item 13. Certain Relationships and Related Transactions 40 Item 14. Principal Accounting Fees and Services 40 Part IV Item 15. Exhibits, Financial Statement Schedules 41 Signatures 42 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 4. DONNELLEY R R & SONS CO 10-K 03/14/2005 EXECUTIVE OFFICERS OF R.R. DONNELLEY & SONS COMPANY Name, Age and Officer Positions with the Company Since Mark A. Angelson 2004.00 54, Director and Chief Executive Officer Suzanne S. Bettman 2004.00 40, Senior Vice President, General Counsel Dean E. Cherry 2004.00 44, Group President, Integrated Print Communications Michael S. Kraus 2004.00 32, Executive Vice President, Strategy
  • 5. ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 6. Business Experience During Past Five Years Served as RR Donnelley s Chief Executive Officer and Director since February 2004. Prior to this, served in various capacities at Moore Wallace Incorporated* that included: Chief Executive Officer since January 2003; Director since November 2001; Lead Independent Director from April 2002 until December 2002 and Non-Executive Chairman of the Board from November 2001 until April 2002. From December 1999 through January 2002, served as the Deputy Chairman of Chancery Lane Capital LLC (a private equity investment firm), and from March 1996 until March 2001 served in various executive capacities at Big Flower Holdings, Inc. (a printing, marketing and advertising services company) and its successor, Vertis Holdings, Inc., including as Deputy Chairman. Served as RR Donnelley s Senior Vice President, General Counsel since March 2004. Prior to this, served as Group Managing Director, General Counsel of Huron Consulting Group LLC (a financial and operational consulting firm) from September 2002 to February 2004. Served previously as Executive Vice President, General Counsel of True North Communications Inc. (a global advertising and marketing communications holding company) from 1999 until 2001. Served as RR Donnelley s Group President, Integrated Print Communications since February 2004. Prior to this, served in various capacities at Moore Wallace Incorporated* that included: Group President, Commercial, Direct Mail, BCS and Print Fulfillment Services from 2001 until 2004; President, Commercial and Subsidiary Operations in 2001 and President, International and Subsidiary Operations in 2001. Previously held executive positions at World Color Press, Inc. (a commercial printer) and Capital Cities/ABC Publishing Division. Served as RR Donnelley s Executive Vice President, Strategy since February 2004. Prior to this, served as Senior Vice President-Mergers and Acquisitions of Moore Wallace Incorporated* since January 2003. From 1999 until 2002, served as a managing director of Chancery Lane Capital LLC (a private equity investment firm) and from 1995 until 1999, served in various capacities at Big Flower Holdings,
  • 7. Inc. and its successor, Vertis Holdings, Inc. including as a managing director responsible for corporate acquisitions, investments, divestitures and mergers, including planning and analysis, execution and related financings.
  • 8. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Name, Age and Officer Positions with the Company Since John R. Paloian 2004.00 46, Group President, Publishing and Retail Services Thomas J. Quinlan, III 2004.00 41, Executive Vice President, Operations Richard T. Sansone 2004.00 38, Senior Vice President, Controller Kevin J. Smith 2004.00 50, Executive Vice President, Chief Financial Officer Theodore J. Theophilos 2004.00 51, Chief Administrative Officer and Secretary
  • 9. ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 10. Business Experience During Past Five Years Served as RR Donnelley s Group President, Publishing and Retail Services since March 2004. Prior to this, from 1997 until 2003, he served in various capacities, including Co-Chief Operating Officer, at Quebecor World, Inc. (a commercial printer) and its predecessors. Served as RR Donnelley s Executive Vice President, Operations since February 2004. Prior to this, served in various capacities at Moore Wallace Incorporated* that included: Executive Vice President Business Integration since May 2003; Executive Vice President Office of the Chief Executive from January 2003 until May 2003; and Executive Vice President and Treasurer from December 2000 until December 2002. Served in 2000 as Executive Vice President and Treasurer of Walter Industries, Inc. (a homebuilding industrial conglomerate) and held various positions from 1994 until 1999, including Vice President and Treasurer, at World Color Press, Inc. Served as RR Donnelley s Senior Vice President, Controller since February 2004. Prior to this, served as Senior Vice President, Controller of Moore Wallace Incorporated* from 2003 to 2004, as Vice President, Controller from 2001 to 2003 and was employed as an auditor at PricewaterhouseCoopers LLP (an accounting firm) from 1993 to 2001. Served as RR Donnelley s Executive Vice President, Chief Financial Officer since April 2004. Prior to this, from 2002 to March 2004 served as Chief Financial Officer of Heidrick & Struggles International, Inc. (an executive search firm) from 2000 to 2001 served as Executive Vice President, Chief Financial Officer of True North Communications Inc. and from 1998 until 2000 served as Senior Vice President and Chief Accounting Officer at True North Communications Inc. The Company has announced Mr. Smith s departure as of March 31, 2005. Served as RR Donnelley s Chief Administrative Officer and Secretary since February 2004. Prior to this, served as Executive Vice President Business and Legal Affairs at Moore Wallace Incorporated since March 2003. Previously held positions include Senior Vice President and General Counsel
  • 11. of Palm Inc. (a provider of handheld computing devices and operating systems for handheld devices) from 2002 to 2003 and Chief Legal Affairs Officer from 1999 until 2001 at E*TRADE Group (a financial services holding company).
  • 12. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Dividends Paid Common Stock Prices 2004.00 2004.00 2003.00 High Low First Quarter $ 0.26 $ 0.25 $ 32.50 $ 27.62 Second Quarter 0.26 0.25 33.27 28.37 Third Quarter 0.26 0.26 33.14 29.33 Fourth Quarter 0.26 0.26 35.37 30.55 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 13. ock Prices 2003.00 High Low $ 23.35 $ 16.94 26.47 18.17 27.59 23.06 30.15 24.75
  • 14. DONNELLEY R R & SONS CO 10-K 03/14/2005 SELECTED FINANCIAL DATA 2004 (1) 2003.00 Net sales (2) $ 7,156.40 $ 4,182.60 Net earnings from continuing operations 264.90 188.50 (2)* Net earnings from continuing operations 1.30 1.65 per diluted share (2)* Income (loss) from discontinued operations, (80.00) (12.00) net of tax Net earnings* 178.30 176.50 Net earnings per diluted share* 0.88 1.54 Total assets 8,553.70 3,203.30 Long-term debt 1,581.20 750.40 Cash dividends per common share 1.04 1.02 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 15. 2002.00 2001.00 2000.00 $ 4,247.20 $ 4,828.80 $ 5,399.30 136.80 27.80 275.50 1.19 0.23 2.24 5.40 (2.80) (8.60) 142.20 25.00 266.90 1.24 0.21 2.17 3,203.60 3,431.40 3,958.20 752.90 881.30 739.20 0.98 0.94 0.90
  • 16. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement Net Sales Income (Los Continuing Op Years Ended Years En December 31, December 2004 (1) 2003.00 2004 (1) (in millions) Publishing and Retail Services $ 2,811.80 $ 2,608.80 $ 306.70 Integrated Print Communications 2,878.30 1,441.00 326.80 Forms and Labels 1,466.30 132.80 52.10 Total operating segments 7,156.40 4,182.60 685.60 Corporate (226.40) Total continuing operations $ 7,156.40 $ 4,182.60 $ 459.20 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 17. Income (Loss) from Continuing Operations Years Ended December 31, 2003.00 $ 311.40 120.60 (21.70) 410.30 (117.60) $ 292.70
  • 18. DONNELLEY R R & SONS CO 10-K 03/14/2005 Publishing and Retail Services Years Ended December 31, 2004.00 2003.00 (in millions) Net sales $ 2,811.80 $ 2,608.80 Income from continuing operations $ 306.70 $ 311.40 Included in income from continuing operations: Restructuring and impairment charges net $ 40.30 $ 2.80 Integration charges $ 0.40 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 19. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Years Ended December 31, 2004.00 2003.00 (in millions) Net sales $ 2,878.30 $ 1,441.00 Income from continuing operations $ 326.80 $ 120.60 Included in income from continuing operations: Restructuring and impairment charges net $ 22.30 $ 5.30 Fair market value adjustment for inventory $ 17.50 $ and backlog related to the Acquisition Integration charges $ 3.60 $ Insurance recovery related to 9/11 $ $ (2.00) Amortization of purchased intangibles $ 19.30 $ related to the Acquisition ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 20. DONNELLEY R R & SONS CO 10-K 03/14/2005 Forms and Labels Years Ended December 31, 2004.00 2003.00 (in millions) Net sales $ 1,466.30 $ 132.80 Income (loss) from continuing operations $ 52.10 $ (21.70) Included in income (loss) from continuing operations: Restructuring and impairment charges net $ 25.10 $ 4.20 Fair market value adjustment for inventory $ 49.40 $ and backlog related to the Acquisition Integration charges $ 3.10 $ Amortization of purchased intangibles $ 17.40 $ related to the Acquisition ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 21. DONNELLEY R R & SONS CO 10-K 03/14/2005 RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 Net Sales Income (Los Continuing Op Years Ended Years En December 31, December 2003.00 2002.00 2003.00 (in millions) Publishing and Retail Services $ 2,608.80 $ 2,667.00 $ 311.40 Integrated Print Communications 1,441.00 1,437.80 120.60 Forms and Labels 132.80 142.40 (21.70) Total operating segments 4,182.60 4,247.20 410.30 Corporate (117.60) Total continuing operations $ 4,182.60 $ 4,247.20 $ 292.70 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 22. Income (Loss) from Continuing Operations Years Ended December 31, 2002.00 $ 272.20 114.20 (9.20) 377.20 (132.00) $ 245.20
  • 23. DONNELLEY R R & SONS CO 10-K 03/14/2005 Publishing and Retail Services Years Ended December 31, 2003.00 2002.00 (in millions) Net sales $ 2,608.80 $ 2,667.00 Income from continuing operations $ 311.40 $ 272.20 Included in income from continuing operations: Restructuring and impairment charges net $ 2.80 $ 53.30 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 24. DONNELLEY R R & SONS CO 10-K 03/14/2005 Integrated Print Communications Years Ended December 31, 2003.00 2002.00 (in millions) Net sales $ 1,441.00 $ Income from continuing operations $ 120.60 $ Included in income from continuing operations: Restructuring and impairment charges net $ 5.30 $ Insurance recovery related to 9/11 $ (2.00) $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 25. 2002.00 ) 1,437.80 114.20 14.50 (1.60)
  • 26. DONNELLEY R R & SONS CO 10-K 03/14/2005 Forms and Labels Years Ended December 31, 2003.00 2002.00 (in millions) Net sales $ 132.80 $ 142.40 Income (loss) from continuing operations $ (21.70) $ (9.20) Included in income (loss) from continuing operations: Restructuring and impairment charges net $ 4.20 $ 3.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 27. DONNELLEY R R & SONS CO 10-K 03/14/2005 Cash Flows From Discontinued Operations Payments Due In Total 2005.00 2006.00 2007.00 Total debt $ 1,787.10 $ 204.50 $ 226.60 $ 1.00 Operating leases 387.50 94.30 80.90 61.50 Other (1) 331.10 309.60 9.20 6.50 Total $ 2,505.70 $ 608.40 $ 316.70 $ 69.00 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 28. ue In 2008.00 2009.00 Thereafter $ 1.00 $ 401.00 $ 953.00 40.70 33.30 76.80 3.50 2.30 $ 45.20 $ 436.60 $ 1,029.80
  • 29. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Plan Category(1) Number of Securities Weighted-Average to Be Issued upon Exercise Price of Exercise of Outstanding Options, Outstanding Options, Warrants and Warrants and Rights Rights(4) (in thousands) (a) (b) Equity compensation plans approved by 10,978.40 $ 30.77 security holders(2) Equity compensation plans not approved 4,903.40 28.91 by security holders(3) Total 15,881.80 30.20 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 30. Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) 3,069.10 (5) 5,219.40 8,288.50
  • 31. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement Page Consolidated Statements of Operations F-2 for each of the three years ended December 31, 2004 Consolidated Balance Sheets as of December F-3 31, 2004 and 2003 Consolidated Statements of Cash Flows F-4 for each of the three years ended December 31, 2004 Consolidated Statements of Shareholders F-5 Equity for each of the three years ended December 31, 2004 Notes to Consolidated Financial Statements F-6 Report of Independent Registered Public F-37 Accounting Firm Unaudited Interim Financial Information, F-38 Dividend Summary and Financial Summary Report of Independent Registered Public F-40 Accounting Firm on Financial Statement Schedule Financial Statement Schedule II Valuation F-41 and Qualifying Accounts ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 32. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement Year Ended December 31 2004.00 2003.00 Net sales $ 7,156.40 $ Cost of sales (exclusive of depreciation 5,269.60 and amortization shown below) Selling, general and administrative expenses 934.70 (exclusive of depreciation and amortization shown below) Restructuring and impairment charges 107.40 net (Note 4) Depreciation and amortization 385.50 Total operating expenses 6,697.20 Income from continuing operations 459.20 Interest expense net (Note 13) 85.90 Investment and other income (expense) (16.50) net (Note 8) Earnings from continuing operations before 356.80 income taxes, minority interest and cumulative effect of change in accounting principle Income taxes (Note 12) 92.60 Minority interest (0.70) Net earnings from continuing operations 264.90 before cumulative effect of change in accounting principle Income (loss) from discontinued operations, (80.00) net of tax Cumulative effect of change in accounting (6.60) principle, net of tax Net earnings $ 178.30 $ Earnings per share: Basic: Net earnings from continuing operations $ 1.31 $ before cumulative effect of change in accounting principle Income (loss) from discontinued operations, (0.40) net of tax Cumulative effect of change in accounting (0.03) principle, net of tax Net earnings $ 0.88 $ Diluted: Net earnings from continuing operations $ 1.30 $ before cumulative effect of change in accounting principle Income (loss) from discontinued operations, (0.39) net of tax Cumulative effect of change in accounting (0.03)
  • 33. principle, net of tax Net earnings $ 0.88 $ Weighted average number of common shares outstanding: Basic 202.30 Diluted 204.20 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 34. ar Ended December 31, 2003.00 2002.00 4,182.60 $ 4,247.20 3,085.60 3,131.10 521.50 497.00 12.50 87.40 270.30 286.50 3,889.90 4,002.00 292.70 245.20 51.40 62.70 (12.90) (15.10) 228.40 167.40 39.80 29.90 0.10 0.70 188.50 136.80 (12.00) 5.40 176.50 $ 142.20 1.67 $ 1.21 (0.11) 0.05 1.56 $ 1.26 1.65 $ 1.19 (0.11) 0.05
  • 35. 1.54 $ 1.24 113.30 113.10 114.30 114.40
  • 36. DONNELLEY R R & SONS CO 10-K 03/14/2005 Balance Sheet December 31, 2004.00 2003.00 ASSETS Cash and equivalents $ 641.80 $ 60.80 Receivables, less allowances for doubtful 1,252.80 691.50 accounts of $44.5 in 2004 and $26.3 in 2003 Inventories (Note 6) 422.00 154.30 Prepaid expenses and other current assets 44.10 22.40 Deferred income taxes (Note 12) 239.90 22.50 Total current assets 2,600.60 951.50 Property, plant and equipment net (Note 1,924.50 1,279.10 7 Goodwill (Note 5) 2,472.70 167.80 Other intangible assets net (Note 5) 666.10 5.40 Prepaid pension cost (Note 11) 498.30 314.40 Other noncurrent assets 288.70 252.60 Assets of discontinued operations (Note 102.80 232.50 3 Total assets $ 8,553.70 $ 3,203.30 LIABILITIES Accounts payable $ 517.80 $ 282.70 Accrued liabilities (Note 9) 765.00 400.40 Short-term and current portion of long-term 204.50 175.10 debt (Note 13) Total current liabilities 1,487.30 858.20 Long-term debt (Note 13) 1,581.20 750.40 Postretirement benefits (Note 11) 336.90 12.00 Deferred income taxes (Note 12) 576.30 221.80 Other noncurrent liabilities 534.50 323.40 Liabilities of discontinued operations 50.90 54.30 (Note 3) Total liabilities 4,567.10 2,220.10 SHAREHOLDERS EQUITY Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None Common stock, $1.25 par value 303.70 176.10 Authorized: 500.0 shares; Issued: 243.0 shares in 2004 (140.9 shares 2003) Additional paid-in-capital 2,856.70 132.40 Retained earnings 1,536.90 1,641.70 Accumulated other comprehensive loss (72.20) (123.70) Unearned compensation (30.30) (2.90) Treasury stock, at cost, 20.6 shares in (608.20) (840.40) 2004 (27.2 shares 2003) Total shareholders equity 3,986.60 983.20 Total liabilities and shareholders equity $ 8,553.70 $ 3,203.30
  • 37. ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 38. DONNELLEY R R & SONS CO 10-K 03/14/2005 Cash Flows Year Ended December 31, 2004.00 2003.00 OPERATING ACTIVITIES Net earnings $ 178.30 $ 176.50 Adjustments to reconcile net earnings to net cash provided by operating activities: Loss (income) from discontinued operations 80.00 12.00 Cumulative effect of change in accounting 6.60 principle Restructuring charges net 85.00 8.80 Impairment charges 22.40 3.70 Depreciation and amortization 385.50 270.30 Fair market value adjustment for inventory 66.90 and backlog Reversal of tax reserves (30.50) (39.90) Deferred taxes 29.80 (16.80) Gain on sale net (14.70) (8.20) Other 76.90 52.50 Changes in operating assets and liabilities of continuing operations net of acquisitions: Accounts receivable net 59.90 (117.60) Inventories (34.00) (4.10) Prepaid expenses 11.10 9.20 Accounts payable (23.20) 37.40 Accrued liabilities and other (140.60) (8.10) Net cash provided by operating activities 759.40 375.70 of continuing operations Net cash provided by (used for) operating 62.80 (21.60) activities of discontinued operations Net cash provided by operating activities 822.20 354.10 INVESTING ACTIVITIES Capital expenditures (265.20) (192.80) Acquisition of business, net of cash acquired 66.10 Proceeds from sale of investments and other 79.60 34.20 assets Net cash used for investing activities (119.50) (158.60) of continuing operations Net cash provided by (used for) investing 55.60 (26.40) activities of discontinued operations Net cash used for investing activities (63.90) (185.00) FINANCING ACTIVITIES Payments of long-term debt (958.40) (111.20) Proceeds from issuance of long-term debt 997.00 Net change in short-term debt (139.70) 40.60 Issuance of common stock 119.40 18.50 Acquisition of common stock (2.50) Dividends paid (200.80) (115.70) Debt issuance costs (9.30) Net cash used for financing activities (191.80) (170.30)
  • 39. of continuing operations Net cash used for financing activities (2.80) (0.60) of discontinued operations Net cash used for financing activities (194.60) (170.90) Effect of exchange rate on cash flows and 17.30 2.10 cash equivalents Net increase in cash and equivalents 581.00 0.30 Cash and equivalents at beginning of year 60.80 60.50 Cash and equivalents at end of year $ 641.80 $ 60.80 Supplemental non-cash disclosure: Issuance of 102.1 million shares of RR Donnelley $ 2,804.90 $ common stock for acquisition of business ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 40. cember 31, 2002.00 $ 142.20 (5.40) 72.00 15.40 286.50 (30.00) (15.10) (20.20) 62.10 83.10 6.40 (5.70) (37.20) (167.20) 386.90 22.00 408.90 (239.70) 24.40 (215.30) (0.90) (216.20) (78.70) 14.60 16.60 (20.00) (111.00) (178.50)
  • 41. (178.50) (2.30) 11.90 48.60 $ 60.50 $
  • 42. DONNELLEY R R & SONS CO 10-K 03/14/2005 R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES Common Stock Additional Paid-in- Capital Shares Amount Shares Balance at December 31, 2001 140.90 $ 176.10 $ Net earnings Translation adjustments Minimum pension liability adjustment Comprehensive income Treasury stock activity Cash dividends paid Stock-based awards, net of amortization Balance at December 31, 2002 140.90 176.10 Net earnings Translation adjustments Minimum pension liability adjustment Unrealized gain on investment Comprehensive income Treasury stock activity Cash dividends paid Stock-based awards, net of amortization Balance at December 31, 2003 140.90 176.10 Net earnings Translation adjustments Minimum pension liability adjustment Unrealized gain on investment Comprehensive income Treasury stock activity Cash dividends paid Stock-based awards, net of amortization Common shares issued 102.10 127.60 Balance at December 31, 2004 243.00 $ 303.70 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 43. Additional Paid-in- Capital Treasury Stock Unearned Retai Compensation Earni Amount 132.40 (27.80) $ (873.70) $ (7.00) $ 7.40 1.80 132.40 (27.80) (866.30) (5.20) 0.60 25.90 2.30 132.40 (27.20) (840.40) (2.90) 20.50 6.60 232.20 7.00 (27.40) 2,696.80 2,856.70 (20.60) $ (608.20) $ (30.30) $
  • 44. Retained Accumulated Earnings Other Comprehensive Income (Loss) Total 1,569.60 $ (109.00) $ 888.40 142.20 142.20 (10.70) (10.70) 4.30 4.30 135.80 (7.80) (0.40) (111.00) (111.00) 1.80 1,593.00 (115.40) 914.60 176.50 176.50 16.00 16.00 (27.00) (27.00) 2.70 2.70 168.20 (12.10) 13.80 (115.70) (115.70) 2.30 1,641.70 (123.70) 983.20 178.30 178.30 23.00 23.00 25.70 25.70 2.80 2.80 229.80 (82.30) 170.40 (200.80) (200.80) (20.40) 2,824.40 1,536.90 $ (72.20) $ 3,986.60
  • 45. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2004.00 2003.00 Net earnings, as reported $ 178.30 $ 176.50 Pro forma adjustments - net of tax: Stock-based compensation, included in 9.80 1.70 net earnings Fair value compensation expense (13.20) (11.20) Pro forma net earnings $ 174.90 $ 167.00 Net earnings per share, as reported: Basic $ 0.88 $ 1.56 Diluted 0.88 1.54 Pro forma net earnings per share: Basic $ 0.86 $ 1.47 Diluted 0.86 1.46 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 46. 2002.00 $ 142.20 1.50 (11.70) $ 132.00 $ 1.26 1.24 $ 1.17 1.15
  • 47. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Accounts receivable $ 656.60 Inventory and customer backlog 323.80 Other current assets 37.00 Property, plant and equipment and other 834.40 long-term assets Amortizable intangible assets and indefinite-lived 703.10 intangible assets Goodwill 2,309.10 Accounts payable and accrued liabilities (670.10) Short-term and long-term debt (966.20) Postretirement and pension benefits and (311.70) other long-term liabilities Deferred taxes net (158.00) Total purchase price net of cash acquired $ 2,758.00 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 48. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004.00 2003.00 Net sales $ 7,680.70 $ 7,390.60 Net earnings before cumulative effect 163.40 267.40 of change in accounting principle Net earnings 156.80 267.40 Earnings per share: Basic: Net earnings before cumulative effect $ 0.75 $ 1.24 of change in accounting principle Cumulative effect of change in accounting 0.03 principle Net earnings $ 0.72 $ 1.24 Diluted: Net earnings before cumulative effect $ 0.74 $ 1.23 of change in accounting principle Cumulative effect of change in accounting 0.03 principle Net earnings $ 0.71 $ 1.23 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 49. DONNELLEY R R & SONS CO 10-K 03/14/2005 Balance Sheet December 31, December 31, 2004.00 2003.00 Assets: Cash $ 1.50 $ Receivables, less allowance for doubtful 55.40 47.00 accounts Inventory 33.60 Prepaid expenses and other current assets 4.00 0.90 Deferred income taxes 14.30 Property, plant and equipment net 2.00 18.30 Goodwill and intangibles 4.80 152.00 Other assets 1.50 Total assets of discontinued operations $ 102.80 $ 232.50 Liabilities: Accounts payable and accrued liabilities $ 49.70 $ 39.20 Debt 2.80 Current and deferred income taxes 1.20 12.30 Total liabilities of discontinued operations $ 50.90 $ 54.30 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 50. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement Years Ended December 31, 2004.00 2003.00 Net sales $ 634.10 $ 604.50 Income (loss) from discontinued operations, (80.00) (12.00) net of tax ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 51. nded r 31, 2002.00 $ 507.70 5.40
  • 52. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2004.00 Employee Other Total Impairment Terminations Charges Restructuring-net Publishing and Retail Services $ 24.60 $ 0.50 $ 25.10 $ Integrated Print Communications 18.00 1.50 19.50 Forms and Labels 19.80 0.90 20.70 Corporate 19.20 0.50 19.70 $ 81.60 $ 3.40 $ 85.00 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 53. Impairment Total 15.20 $ 40.30 2.80 22.30 4.40 25.10 19.70 22.40 $ 107.40
  • 54. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2003.00 Employee Other Total Terminations Charges Restructuring-net Publishing and Retail Services $ (0.90) $ 3.50 $ 2.60 Integrated Print Communications 4.20 0.80 5.00 Forms and Labels 1.00 1.00 Corporate (1.00) 1.20 0.20 $ 2.30 $ 6.50 $ 8.80 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 55. Impairment Total $ 0.20 $ 2.80 0.30 5.30 3.20 4.20 0.20 $ 3.70 $ 12.50
  • 56. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2002.00 Employee Other Total Impairment Terminations Charges Restructuring-net Publishing and Retail Services $ 15.90 $ 22.90 $ 38.80 $ Integrated Print Communications 11.10 2.70 13.80 Forms and Labels 2.20 1.40 3.60 Corporate 6.90 8.90 15.80 $ 36.10 $ 35.90 $ 72.00 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 57. Impairment Total 14.50 $ 53.30 0.70 14.50 (0.20) 3.40 0.40 16.20 15.40 $ 87.40
  • 58. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Restructuring Costs, Net Balance at Charged to Capitalized Cash January 1, Results of as a Cost of Paid 2004.00 Operations Acquisition Employee terminations $ 3.00 $ 81.60 $ 13.60 $ (63.10) Other 1.40 3.40 11.10 (4.30) $ 4.40 $ 85.00 $ 24.70 $ (67.40) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 59. Balance at December 31, 2004.00 $ 35.10 11.60 $ 46.70
  • 60. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Net Book Value Acquisitions Foreign Exchange at January 1, 2004 Publishing and Retail Services $ 82.50 $ $ Integrated Print Communications 48.30 1,272.50 3.70 Forms and Labels 37.00 1,035.20 1.70 $ 167.80 $ 2,307.70 $ 5.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 61. Disposition Net Book Value at December 31, 2004 $ $ 82.50 1,324.50 (8.20) 1,065.70 $ (8.20) $ 2,472.70
  • 62. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Net Book Value Acquisitions Foreign Exchange/ at January 1, 2003 Other Publishing and Retail Services $ 92.20 $ $ Integrated Print Communications 47.70 0.60 Forms and Labels 30.60 6.40 $ 170.50 $ $ 7.00 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 63. Impairments/ Net Book Value at Dispositions December 31, 2003 $ (9.7 ) $ 82.50 48.30 37.00 $ (9.7 ) $ 167.80
  • 64. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Other Intangibles Gross Additions Accumulated Carrying During Amortization Amount the Year and Foreign At January 1, Exchange 2004.00 Trademarks, licenses and agreements $ 0.30 $ 20.60 $ (11.60) Patents 98.30 (10.20) Customer relationship intangibles 47.40 268.70 (60.90) Indefinite-lived trade names 313.50 $ 47.70 $ 701.10 $ (82.70) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 65. Balance at Amortization December 31, Period 2004.00 $ 9.30 1.5-2 years 88.10 8 years 255.20 12-15 years 313.50 Indefinite $ 666.10
  • 66. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Other Intangibles Gross Additions Accumulated Carrying During Amortization Amount the Year and Foreign At January 1, Exchange 2003.00 Trademarks, licenses and agreements $ 0.30 $ $ (0.10) Customer relationship intangibles 42.90 4.50 (42.20) $ 43.20 $ 4.50 $ (42.30) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 67. Balance at Amortization December 31, Period 2003.00 $ 0.20 1-2 years 5.20 1-15 years $ 5.40
  • 68. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year Expense ### $ 40.30 ### $ 31.10 ### $ 31.10 ### $ 31.10 ### $ 31.10 ### $ 31.10 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 69. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE December 31, 2004.00 2003.00 Raw materials and manufacturing supplies $ 174.80 $ 85.50 Work in process 129.60 109.40 Finished goods 171.90 9.50 LIFO reserve (54.30) (50.10) Total $ 422.00 $ 154.30 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 70. DONNELLEY R R & SONS CO 10-K 03/14/2005 Company recognized LIFO expense in 2004 of $3.8 million, December 31, 2004.00 2003.00 Land $ 72.70 $ 33.90 Buildings 904.40 728.60 Machinery and equipment 4,613.00 3,979.50 Less: Accumulated Depreciation ### ### Total $ 1,924.50 $ 1,279.10 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 71. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE December 31, 2004.00 2003.00 Employee-related liabilities $ 293.30 $ 185.10 Restructuring liabilities 46.70 4.40 Deferred revenue 95.90 34.00 Other 329.10 176.90 Total accrued liabilities $ 765.00 $ 400.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 72. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Pension Benefits 2004.00 2003.00 2002.00 Service cost $ 61.00 $ 48.20 $ Interest cost 126.80 106.50 Expected return on plan assets (182.10) (157.40) Amortization of transition obligation (11.00) (10.90) Amortization of prior service cost 4.00 4.00 Amortization of actuarial (gain) loss 8.40 4.10 Net periodic benefit (income) expense 7.10 (5.50) Curtailments Special termination benefit cost 3.30 Provision for litigation settlement to be funded by plan benefits Settlements (0.10) Total expense (income) $ 7.00 $ (2.20) $ Weighted average assumption used to calculate net periodic benefit expense (income): Discount Rate 5.90 % 6.70 % Rate of compensation increase 4.00 % 4.00 % Expected return on plan assets 8.20 % 8.90 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 73. Postretirement Benefits 2002.00 2004.00 2003.00 2002.00 52.30 $ 16.10 $ 12.10 $ 11.50 102.30 33.60 20.00 18.60 (170.90) (21.00) (24.80) (27.50) (10.80) 3.70 (3.40) (2.30) (2.80) 2.70 1.90 0.20 (20.70) 27.20 5.20 (0.20) 1.20 8.40 22.90 9.10 0.50 11.80 $ 27.20 $ 6.40 $ 8.20 6.90 % 5.90 % 6.80 % 7.00 % 4.00 % 4.00 % 4.00 % 4.00 % 9.40 % 8.00 % 8.50 % 9.00 %
  • 74. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Pension Benefits 2004.00 2003.00 Benefit obligation at beginning of year $ 1,824.10 $ 1,634.80 Service cost 61.00 48.20 Interest cost 126.80 106.50 Plan participants contributions 1.20 1.00 Acquisitions 450.50 Amendments (147.60) Actuarial loss 25.50 135.00 Curtailments Special termination benefits 3.30 Foreign currency translation 35.70 7.20 Adjustment to conform measurement date (3.20) (2) Benefits paid (141.70) (111.90) Benefit obligation at end of year (1) $ 2,232.30 $ 1,824.10 Fair value of plan assets at beginning of $ 1,731.10 $ 1,486.80 year Actual return on assets 313.60 344.00 Acquisitions 530.80 Employer contributions 25.90 6.10 Plan participants contributions 1.20 1.00 Foreign currency translation 27.30 5.10 Adjustment to conform measurement date (5.80) (2) Benefits paid (141.70) (111.90) Fair value of plan assets at end of year $ 2,482.40 $ 1,731.10 Funded status $ 250.10 $ (93.00) Unrecognized transition obligation (10.20) (21.10) Unrecognized net actuarial loss 278.90 384.80 Unrecognized prior service cost (benefit) (114.40) 37.10 Fourth quarter contribution 9.70 0.90 Net benefit cost recognized on the consolidated $ 414.10 $ 308.70 balance sheet Amounts recognized in the consolidated balance sheets consist of: Prepaid benefit cost $ 498.30 $ 314.40 Accrued benefit cost (included in Other (130.60) (98.50) noncurrent liabilities) Postretirement liability Intangible asset 1.00 4.70 Deferred income taxes 18.20 35.20 Accumulated other comprehensive income 27.20 52.90 Net benefit cost recognized on the consolidated $ 414.10 $ 308.70 balance sheet Weighted average assumptions used to determine the benefit obligation at the measurement
  • 75. date: Discount Rate 6.00 % 6.00 % Rate of compensation increase 4.00 % 4.00 % Healthcare cost trend: Current Pre-Age 65 Post-Age 65 Ultimate ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 76. Postretirement Benefits 2004.00 2003.00 $ 328.50 $ 307.00 16.10 12.10 33.60 20.00 11.40 3.00 312.00 (109.90) (6.20) (6.10) 23.70 (1.50) 1.30 1.90 (1.20) (53.70) (32.40) $ 531.10 $ 328.50 $ 213.10 $ 215.60 37.10 26.90 11.60 11.40 3.00 (53.70) (32.40) $ 219.50 $ 213.10 $ (311.60) $ (115.40) 90.00 115.60 (118.80) (12.20) 3.50 $ (336.90) $ (12.00) $ $ (336.90) (12.00) $ (336.90) $ (12.00)
  • 77. 6.00 % 6.00 % 4.00 % 4.00 % 10.20 % 8.20 % 11.90 % 8.20 % 6.00 % 5.00 %
  • 78. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Pension Benefits 2004.00 2003.00 Projected benefit obligation $ 388.90 $ 255.30 Fair value of plan assets 242.50 149.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 79. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Pension Benefits 2004.00 2003.00 Accumulated benefit obligation $ 363.70 $ 248.80 Fair value of plan assets 242.50 149.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 80. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 1% 1% Increase Decrease Total postretirement service and interest $ 1.80 $ (1.70) cost components Postretirement benefit obligation 21.70 (20.10) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 81. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Pension Benefits Postretirement Benefits 2004.00 2003.00 2004.00 2003.00 Equity 81 % 87 % 77 % 79 % Fixed income securities 15 % 12 % 22 % 20 % Cash and other 4% 1% 1% 1% Total 100 % 100 % 100 % 100 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 82. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Pension Postretirement Benefits Benefits 2005.00 $ 103.50 $ 42.10 2006.00 103.50 40.60 2007.00 107.80 40.70 2008.00 110.30 40.50 2009.00 112.80 40.40 Thereafter 652.40 197.00 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 83. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004.00 2003.00 2002.00 U.S. $ 238.40 $ 209.40 $ 151.40 Foreign 118.40 19.00 16.00 Total $ 356.80 $ 228.40 $ 167.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 84. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004.00 2003.00 2002.00 Federal: Current $ 38.60 $ 44.40 $ 30.30 Deferred 41.70 (0.80) (7.10) State: Current 6.00 8.40 6.90 Deferred (11.90) (16.00) (8.00) Foreign 18.20 3.80 7.80 Total $ 92.60 $ 39.80 $ 29.90 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 85. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) December 31, 2004.00 2003.00 Deferred tax liabilities: Intangible assets $ 292.00 $ Accelerated depreciation 375.90 184.70 Investments 22.10 34.40 Pensions 146.00 97.00 Other 77.80 77.50 Total deferred tax liabilities 913.80 393.60 Deferred tax assets: Postretirement 133.00 5.10 Accrued liabilities 240.80 123.00 Net operating loss and other tax carryforwards 274.40 37.40 Investments 1.20 2.00 Other 89.30 84.00 Total deferred tax assets 738.70 251.50 Valuation allowance 161.30 34.40 Net deferred tax liabilities $ 336.40 $ 176.50 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 86. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement 2004.00 2003.00 2002.00 Federal statutory rate 35.00 % 35.00 % 35.00 % Restructuring and impairment charge (1.00) 0.70 (2.20) Foreign tax rate differential (5.20) (4.20) 0.80 State and local income taxes, net of U.S. 5.70 4.00 6.60 federal income tax benefit Effects resulting from COLI (0.10) (15.50) Resolution of IRS audits (1996-1999) (17.50) Resolution of non-recurring items (7.90) Sales of Latin American investments (1.30) Affordable housing investment credits (2.40) (5.90) (9.60) Change in valuation allowance (2.00) (4.70) (3.20) U.S. tax on foreign earnings 2.10 Other 2.90 10.10 6.00 Total 25.90 % 17.40 % 17.90 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 87. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE December 31, 2004.00 2003.00 Commercial paper $ $ 90.50 Medium-term notes due 2005 at a weighted 165.80 165.80 average interest rate of 6.66% 5.0% debentures due November 15, 2006* 227.30 232.20 8.875% debentures due April 15, 2021 80.80 80.80 6.625% debentures due April 15, 2029 199.10 199.10 8.820% debentures due April 15, 2031 68.90 68.90 3.75% senior notes due April 1, 2009 399.50 4.95% senior notes due April 1, 2014 597.80 Other, including capital leases 46.50 88.20 Total debt 1,785.70 925.50 Less: current portion (204.50) (175.10) Long-term debt $ 1,581.20 $ 750.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 88. DONNELLEY R R & SONS CO 10-K 03/14/2005 Income Statement 2004.00 2003.00 Interest incurred $ 88.10 $ 54.50 Amount capitalized as property, plant (2.20) (3.10) and equipment Total $ 85.90 $ 51.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 89. 2002.00 $ 68.00 (5.30) $ 62.70
  • 90. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2004.00 2003.00 2002.00 Weighted average number of common shares outstanding: Basic 202.30 113.30 Dilutive options and awards 1.90 1.00 Diluted 204.20 114.30 Dividends paid per common share $ 1.04 $ 1.02 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 91. 2002.00 113.10 1.30 114.40 0.98
  • 92. DONNELLEY R R & SONS CO 10-K 03/14/2005 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2004.00 Shares Weighted (Thousands) Average Exercise Price Options outstanding at beginning of year 18,376 $ 27.98 Options granted 1 4,449 25.20 Options exercised (5,169) 22.57 Options forfeited and expired (2,958) 27.55 Options outstanding at end of year 14,698 $ 29.13 Options exercisable at end of year 11,075 $ 29.51 Weighted average fair value of options $ 6.26 granted during the year ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 93. 2003.00 2002.00 Shares Weighted Shares Weighted (Thousands) Average (Thousands) Average Exercise Exercise Price Price 16,866 $ 29.69 16,679 $ 29.42 3,432 18.94 1,919 30.72 (560) 21.60 (448) 21.91 (1,362) 28.93 (1,284) 28.93 18,376 $ 27.98 16,866 $ 29.69 11,841 $ 31.11 10,713 $ 31.74 $ 3.97 $ 7.44
  • 94. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004.00 2003.00 2002.00 Dividend yield 3.20 % 4.30 % 3.70 % Expected volatility 28.10 % 26.40 % 26.10 % Risk-free interest rate 3.10 % 4.30 % 4.60 % Expected life 4 years 10 years 10 years ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 95. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Options Outstanding Range of Exercise Prices Shares Weighted Weighted (Thousands) Average Average Remaining Exercise Contractual Price Life (Years) $ 4.33 $18.80 2,596 7.90 $ 17.26 $20.58 $24.88 2,107 5.10 21.40 $25.26 $30.13 1,499 5.20 27.34 $30.19 $31.72 2,936 6.50 31.00 $33.00 $38.06 4,213 3.70 35.17 $39.00 $46.88 1,347 2.80 43.07 14,698 5.30 $ 29.13 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 96. Options Exercisable Shares Weighted (Thousands) Average Exercise Price 1,410 $ 15.96 2,101 21.39 1,322 27.22 1,625 30.73 3,270 35.29 1,347 43.07 11,075 $ 29.51
  • 97. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Total Sales Intersegment Net Sales Sales Year ended December 31, 2004 Publishing and Retail Services $ 2,824.00 $ (12.20) $ Integrated Print Communications 2,927.90 (49.60) Forms and Labels 1,474.50 (8.20) Total operating segments 7,226.40 (70.00) Corporate (1) Total continuing operations $ 7,226.40 $ (70.00) $ Year ended December 31, 2003 (Reclassified) Publishing and Retail Services $ 2,610.00 $ (1.20) $ Integrated Print Communications 1,444.80 (3.80) Forms and Labels 132.50 0.30 Total operating segments 4,187.30 (4.70) Corporate (1) Total continuing operations $ 4,187.30 $ (4.70) $ Year ended December 31, 2002 (Reclassified) Publishing and Retail Services $ 2,670.20 $ (3.20) $ Integrated Print Communications 1,438.10 (0.30) Forms and Labels 142.40 Total operating segments 4,250.70 (3.50) Corporate (1) Total continuing operations $ 4,250.70 $ (3.50) $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 98. Net Sales Income (Loss) Assets of Depreciation Capital from Continuing and Expenditures Continuing Operations Amortization Operations (2) 2,811.80 $ 306.70 $ 1,573.40 $ 165.20 $ 144.30 2,878.30 326.80 3,096.80 131.80 88.60 1,466.30 52.10 2,301.60 55.00 14.50 7,156.40 685.60 6,971.80 352.00 247.40 (226.40) 1,479.10 33.50 17.80 7,156.40 $ 459.20 $ 8,450.90 $ 385.50 $ 265.20 2,608.80 $ 311.40 $ 1,571.60 $ 169.20 $ 129.70 1,441.00 120.60 731.20 73.50 36.30 132.80 (21.70) 154.20 6.60 5.00 4,182.60 410.30 2,457.00 249.30 171.00 (117.60) 513.80 21.00 21.80 4,182.60 $ 292.70 $ 2,970.80 $ 270.30 $ 192.80 2,667.00 $ 272.20 $ 1,554.00 $ 171.10 $ 137.70 1,437.80 114.20 699.10 78.20 60.00 142.40 (9.20) 143.80 7.90 4.50 4,247.20 377.20 2,396.90 257.20 202.20 (132.00) 623.00 29.30 37.50 4,247.20 $ 245.20 $ 3,019.90 $ 286.50 $ 239.70
  • 99. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE U.S. Europe Rest of Combined the World 2004.00 Net sales $ 6,130.30 $ 451.80 $ 574.30 $ Long-lived assets (1) $ 5,397.60 $ 224.80 $ 227.90 $ 2003.00 Net sales $ 3,599.60 $ 313.80 $ 269.20 $ Long-lived assets (1) $ 1,741.90 $ 150.60 $ 126.80 $ ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 100. Combined 7,156.40 5,850.30 4,182.60 2,019.30
  • 101. DONNELLEY R R & SONS CO 10-K 03/14/2005 UNAUDITED INTERIM FINANCIAL INFORMATION, DIVIDEND First Second Quarter Quarter 2004 (1) Net sales (2) $ 1,288.70 $ Gross profit (2) 263.60 Net earnings (loss) from continuing operations (41.40) before cumulative effect of change in accounting principle (2) Net earnings (loss) from continuing operations (0.28) before cumulative effect of change in accounting principle per diluted share (2) Net earnings (loss)* (58.90) Net earnings (loss) per diluted share* (0.39) Stock price high 32.50 Stock price low 27.62 Stock price closing price 30.25 2003.00 Net sales (2) $ 935.00 $ Gross profit (2) 226.90 Net earnings from continuing operations 4.40 before cumulative effect of change in accounting principle (2) Net earnings from continuing operations 0.04 before cumulative effect of change in accounting principle per diluted share (2) Net earnings* 5.70 Net earnings per diluted share* 0.05 Stock price high 23.35 Stock price low 16.94 Stock price closing price 18.32 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 102. Year Ended December 31, Second Third Fourth Full Year Quarter Quarter Quarter 1,842.90 $ 1,913.00 $ 2,111.80 $ 7,156.40 491.40 554.10 577.70 1,886.80 40.70 116.80 148.80 264.90 0.19 0.53 0.66 1.30 (12.50) 112.90 136.80 178.30 (0.06) 0.51 0.61 0.88 33.27 33.14 35.37 35.37 28.37 29.33 30.55 27.62 33.02 31.32 35.29 35.29 999.40 $ 1,053.30 $ 1,194.90 $ 4,182.60 252.30 292.50 325.30 1,097.00 20.50 57.90 105.70 188.50 0.18 0.51 0.92 1.65 19.30 53.80 97.70 176.50 0.17 0.47 0.85 1.54 26.47 27.59 30.15 30.15 18.17 23.06 24.75 16.94 26.14 24.87 30.15 30.15
  • 103. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004.00 2003.00 2002.00 Quarterly rate per common share** $ 0.26 $ 0.26 $ 0.25 Yearly rate per common share 1.04 1.02 0.98 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 104. 2001.00 2000.00 $ 0.24 $ 0.23 0.94 0.90
  • 105. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE 2004 (1) 2003.00 Net sales (2) $ 7,156.40 $ 4,182.60 Net earnings from continuing operations 264.90 188.50 (2) * Net earnings from continuing operations 1.30 1.65 per diluted share (2) * Income (loss) from discontinued operations (80.00) (12.00) Net earnings* 178.30 176.50 Net earnings per diluted share* 0.88 1.54 Total assets 8,553.70 3,203.30 Long-term debt 1,581.20 750.40 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 106. 2002.00 2001.00 2000.00 $ 4,247.20 $ 4,828.80 $ 5,399.30 136.80 27.80 275.50 1.19 0.23 2.24 5.40 (2.80) (8.60) 142.20 25.00 266.90 1.24 0.21 2.17 3,203.60 3,431.40 3,958.20 752.90 881.30 739.20
  • 107. DONNELLEY R R & SONS CO 10-K 03/14/2005 FINANCIAL STATEMENT SCHEDULE II 2004.00 2003.00 in millions Allowance for trade receivable losses: Balance, beginning of year $ 26.30 $ 19.30 Provisions charged to expense 25.90 22.80 52.20 42.10 Uncollectible accounts written off, net (7.70) (15.80) of recoveries Balance, end of year $ 44.50 $ 26.30 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 108. 2002.00 $ 22.60 15.10 37.70 (18.40) $ 19.30
  • 109. DONNELLEY R R & SONS CO 10-K 03/14/2005 INDEX TO EXHIBITS 2.10 Combination Agreement, dated as of November 8, 2003, between R.R. Donnelley & Sons Company and Moore Wallace Incorporated (incorporated by reference to Exhibit 2.1 to the Company s Current Report on Form 8-K dated November 8, 2003, filed on November 10, 2003) 2.20 First Amendment to Combination Agreement, dated as of February 19, 2004, between R.R. Donnelley & Sons Company and Moore Wallace Incorporated (incorporated by reference to Exhibit 2.1 to the Company s Current Report on Form 8-K dated February 20, 2004, filed on February 20, 2004) 3.10 Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company s Quarterly Report on Form 10-Q for the quarter ended June 30, 1996, filed on May 3, 1996) 3.20 By-Laws (incorporated by reference to Exhibit 3.1 to the Company s Registration Statement on Form S-4, Registration No. 333-116636, filed on June 18, 2004) 4.10 Form of Rights Agreement, dated as of April 25, 1996 between R.R. Donnelley & Sons Company and First Chicago Trust Company of New York (incorporated by reference to Exhibit 4 to the Company s Registration Statement on Form 8-A filed on June 5, 1996) 4.20 Instruments, other than those defining the rights of holders of long-term debt not registered under the Securities Exchange Act of 1934 of the registrant and of all subsidiaries for which consolidated or unconsolidated financial statements are required to be filed are being omitted pursuant to paragraph (4)(iii)(A) of Item 601 of Regulation S-K. Registrant agrees to furnish a copy of any such instrument to the Commission upon request. 4.30 Indenture dated as of November 1, 1990 between the Company and Citibank, N.A. as Trustee (incorporated by reference to Exhibit 4 filed with the Company s Form SE filed on March 26, 1992) 4.40 Indenture dated as of March 10, 2004 between the Company and LaSalle National Association, as Trustee (incorporated by reference to Exhibit 4.4 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004)
  • 110. 4.50 Credit Agreement dated February 27, 2004 among the Company, the Banks named therein and CitiCorp North America, Inc., as Administrative Agent (incorporated by reference to Exhibit 4.5 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004) 4.60 Registration Rights Agreement, dated March 10, 2004 among the Company, Citigroup Global Markets, Inc., Fleet Securities, Inc. and J.P. Morgan Securities Inc. (incorporated by reference to Exhibit 4.6 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004) 4.70 Registration Rights Agreement, dated as of December 21, 2000, between Moore Corporation Limited and Chancery Lane/GSC Investors L.P. (incorporated by reference from Exhibit 4.5 to Moore Wallace Incorporated s (formerly Moore Corporation Limited, Commission file number 1-8014) Quarterly Report on Form 10-Q for the quarter ended September 30, 2001, filed on November 14, 2001) 4.80 Registration Rights Agreement, dated as of December 28, 2001, between Moore Corporation Limited, the GSC Investors listed on a schedule thereto and Chancery Lane/GSC Investors L.P. (incorporated by reference from Exhibit 4.5 to Moore Wallace Incorporated s (formerly Moore Corporation Limited, Commission file number 1-8014) Annual Report on Form 10-K for the fiscal year ended December 31, 2002, filed on February 13, 2003) 10.10 Policy on Retirement Benefits, Phantom Stock Grants and Stock Options for Directors (incorporated by reference to Exhibit 10(a) to the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2000, filed on March 30, 2001)* 10.20 Non-Employee Director Compensation Plan (filed herewith) * ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 111. DONNELLEY R R & SONS CO 10-K 03/14/2005 INDEX TO EXHIBITS 10.30 Directors Deferred Compensation Agreement, as amended (incorporated by reference to Exhibit 10(b) to the Company s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, filed on November 12, 1998)* 10.40 Donnelley Shares Stock Option Plan, as amended (incorporated by reference to Exhibit 10(c) to the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 1996, filed on March 10, 1997)* 10.50 Non-Qualified Deferred Compensation Plan (incorporated by reference to Exhibit 99 to the Company s Registration Statement on Form S-8 filed on February 27, 2002)* 10.60 1995 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10(b) to the Company s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, filed on November 12, 1998) * 10.70 2000 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10(a) to the Company s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, filed on November 12, 2003) * 10.80 2000 Broad-based Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10(a) to the Company s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, filed on November 12, 2003) * 10.90 2004 Performance Incentive Plan (incorporated by reference to Exhibit 99.1 to the Company s Registration Statement on Form S-8 filed on March 3, 2004) * 10.10 Amended and Restated R.R. Donnelley & Sons Company Unfunded Supplemental Benefit Plan, as amended (incorporated by reference to Exhibit 10(a) to the Company s Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, filed on May 14, 2003) * 10.11 Supplemental Executive Retirement Plan for Designated Executives B (incorporated by reference to Exhibit 10.1 to Moore Wallace Incorporated s (Commission file number 1-8014) Quarterly Report on Form 10-Q for the quarter ended September 30, 2001, filed on November 14, 2001) * 10.12 2001 Long Term Incentive Plan (incorporated
  • 112. by reference to Exhibit 10.2 to Moore Wallace Incorporated s (Commission file number 1-8014) Annual Report on Form 10-K for the year ended December 31, 2001, filed on March 29, 2002) * 10.13 2003 Long Term Incentive Plan, as amended October 15, 2003 (incorporated by reference to Exhibit 10.12 to Moore Wallace Incorporated s (Commission file number 1-8014) Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed March 1, 2004) * 10.14 Amendment to 2003 Long Term Incentive Plan dated February 27, 2004 (incorporated by reference to Exhibit 10.14 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004) * 10.15 2000 Inducement Option Grant Agreement (incorporated by reference to Exhibit 99.1 to Moore Wallace Incorporated s (formerly Moore Corporation Limited, Commission file number 1-8014) Registration Statement on Form S-8 filed on February 13, 2003) * 10.16 2003 Inducement Option Grant Agreement (incorporated by reference to Exhibit 4.4 to Moore Wallace Incorporated s (Commission file number 1-8014) Registration Statement on Form S-8 filed September 29, 2003) * 10.17 Form of Option Agreement for certain executive officers (filed herewith) * 10.18 Form of Performance Share Unit Award Agreement for certain executive officers (filed herewith) * ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 113. DONNELLEY R R & SONS CO 10-K 03/14/2005 INDEX TO EXHIBITS 10.19 Form of Restricted Stock Unit Award Agreement for certain executive officers (filed herewith) * 10.20 Form of Restricted Stock Unit Award Agreement for certain executive officers (filed herewith) * 10.21 Form of Restricted Stock Unit Award Agreement for directors (filed herewith) * 10.22 Employment Agreement effective as of November 8, 2003 between the Company and Mark A. Angelson (incorporated by reference to Exhibit 10.17 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004) * 10.23 Consulting and Release Agreement dated February 26, 2004 between the Company and William L. Davis (incorporated by reference to Exhibit 10.18 to the Company s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004) * 10.24 Amended and Restated Employment Agreement dated as of November 5, 2002 between the Company and Thomas J. Quinlan, III (filed herewith) * 10.25 Amended and Restated Employment Agreement dated as of November 5, 2002 between the Company and Dean E. Cherry (filed herewith) * 10.26 Employment Agreement dated as of February 14, 2003 between the Company and Theodore J. Theophilos (filed herewith) * 10.27 Amended and Restated Employment Agreement dated March 25, 2004 between the Company and John R. Paloian (filed herewith) * 10.28 Employment Agreement dated February 23, 2005 between the Company and Glenn R. Richter (filed herewith) * 10.29 Purchase and Sale Agreement, dated January 3, 2005, between R.R. Donnelley & Sons Company and Greenwich Street Capital Partners II, L.P., Greenwich Street Employees Fund, L.P., Greenwich Fund, L.P., GSCP Offshore Fund, L.P. and TRV Executive Fund, L.P. (incorporated by reference to Exhibit 10.24 to the Company s Current Report on Form 8-K dated January 3, 2005, filed on January 6, 2005)
  • 114. 12 Statements of Computation of Ratio of Earnings to Fixed Charges (filed herewith) 14 Code of Ethics (incorporated by reference to Exhibit 14 to the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed on March 1, 2004) 21 Subsidiaries of the Company (filed herewith) 23 Consent of Deloitte & Touche LLP (filed herewith) 24 Power of Attorney (filed herewith) 31.10 Certification by Mark A. Angelson, Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (filed herewith) 31.20 Certification by Kevin J. Smith, Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (filed herewith) 32.10 Certification by Mark A. Angelson, Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code (filed herewith) 32.20 Certification by Kevin J. Smith, Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code (filed herewith) ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 115. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE A. Director Annual Retainer - $ 180,000 B. Chairman BOD - $ 120,000 C. Chairman of Audit - $ 35,000 D. Chairs of Committees - $ 20,000 E. Audit Committee Member - $ 20,000 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 116. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE (1) (2) Date Percentage of Total [Date] 25 % [Date] 25 % [Date] 25 % [Date] 25 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 117. DONNELLEY R R & SONS CO 10-K 03/14/2005 IN WITNESS WHEREOF, R. R. DONNELLEY & SONS COMPANY R. R. DONNELLEY & SONS COMPANY By: Name: Title: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 118. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE All of the terms of this Agreement are accepted as of this day of , 200 . Optionee: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 119. DONNELLEY R R & SONS CO 10-K 03/14/2005 IN WITNESS WHEREOF, the Company has caused this Award to R.R. Donnelley & Sons Company By: Name: Title: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 120. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE All of the terms of this Award are accepted as of this day of , 200 . Grantee: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 121. DONNELLEY R R & SONS CO 10-K 03/14/2005 IN WITNESS WHEREOF, the Company has caused this Award to R.R. Donnelley & Sons Company By: Name: Title: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 122. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE All of the terms of this Award are accepted as of this day of , 200 . Grantee: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 123. DONNELLEY R R & SONS CO 10-K 03/14/2005 IN WITNESS WHEREOF, the Company has caused this Award to R.R. Donnelley & Sons Company By: Name: Title: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 124. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE TRANSFEREE Signature Date Signed Street Address Print Name and, if applicable, representative State Zip Code capacity (e.g., as trustee, as general partner) Taxpayer I.D. Number ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 125. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE ACKNOWLEDGED AND AGREED: R.R. DONNELLEY & SONS COMPANY _________________________ Date Signed Name: Title: ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 126. DONNELLEY R R & SONS CO 10-K 03/14/2005 Exhibit 10.25 Moore Wallace Incorporated c/o Moore Wallace Executive Offices 1200 Lakeside Drive Bannockbum, IL 60015 T 847.607.6106 Andrew.panega@moorewallace.com Andrew B. Panega Senior Vice President, Human Resources ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 127. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Moore Corporation Limited c/o Moore Executive Offices One Canterbury Green Stamford, CT. 06901 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 128. DONNELLEY R R & SONS CO 10-K 03/14/2005 III. General MOORE WALLACE INCORPORATED By: /S / M ARK A. A NGELSON Name: Mark A. Angelson Title: Chief Executive Officer ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 129. DONNELLEY R R & SONS CO 10-K 03/14/2005 Annex C Annualized Run Rate of Cost Savings Multiple of Initial Performance Units Payable Not less than $100 million 100 % $200 million 200 % $300 million or more 300 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 130. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE Average Annual Normalized EPS Percentage of Initial Performance Units Payable At least $1.89 100 % $1.99 200 % $2.09 or more 300 % ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 131. DONNELLEY R R & SONS CO 10-K 03/14/2005 IN WITNESS WHEREOF, the Company has caused this Award to R.R. Donnelley & Sons Company By VP, Compensation & Benefits ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 132. DONNELLEY R R & SONS CO 10-K 03/14/2005 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Ye 2004.00 2003.00 Earnings available for fixed charges: Earnings from continuing operations before $ 356.80 $ 228.40 income taxes, minority interest and cumulative effect of change in accounting principle Less/add: Equity (income) loss of minority-owned (0.60) (2.70) companies Add: Dividends received from investees 1.00 under the equity method Less/add: Minority interest (income) 0.70 (0.10) loss in majority-owned subsidiaries Add: Fixed charges before capitalized 119.40 69.30 interest Add: Amortization of capitalized interest 6.80 7.00 Total earnings available for fixed charges $ 483.10 $ 302.90 Fixed charges: Interest expense (1) $ 85.90 $ 51.40 Interest portion of rental expense 33.50 17.90 Total fixed charges before capitalized 119.40 69.30 interest Capitalized interest 2.20 3.10 Total fixed charges $ 121.60 $ 72.40 Ratio of earnings to fixed charges 3.97 4.18 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 133. Years Ended December 31, 2002.00 2001.00 2000.00 $ 167.40 $ 79.10 $ 448.60 (5.60) 1.00 3.10 0.10 0.80 1.80 (0.70) 0.20 80.80 88.80 106.00 7.20 7.50 7.70 $ 249.20 $ 177.20 $ 567.40 $ 62.70 $ 70.60 $ 87.70 18.10 18.20 18.30 80.80 88.80 106.00 5.30 3.10 4.60 $ 86.10 $ 91.90 $ 110.60 2.89 1.93 5.13
  • 134. DONNELLEY R R & SONS CO 10-K 03/14/2005 EX-21,SUBSIDIARIES,HTML,dex21.htm Exhibit 21 Form 10-K Year Ended December 31, 2004 ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 135. DONNELLEY R R & SONS CO 10-K 03/14/2005 DONNELLEY & SONS COMPANY Subsidiaries of R. R. Donnelley & Sons Company Place of Incorporation Freight Systems, Inc. California Allentown S.H. Leasing Company Delaware Caslon Incorporated Delaware Check Printers, Inc. Delaware Chemical Equipment S.H. Leasing Company Delaware FFH Corporation Delaware Haddon Craftsmen, Inc. Delaware HCI Holdings, Inc. Delaware Kittyhawk S.H. Leasing Company Delaware Moore Holdings U.S.A. Inc. Delaware Moore North America Finance, Inc. Delaware Moore Wallace North America, Inc. Delaware Pan Associates, L.P. Delaware RRD Dutch Holdco, Inc. Delaware R. R. Donnelley (Chile) Holdings, Inc. Delaware R. R. Donnelley Global, Inc Delaware R. R. Donnelley Hungary LLC Delaware R. R. Donnelley Latin America LLC Delaware R. R. Donnelley Mendota, Inc. Delaware R. R. Donnelley Printing Company Delaware R. R. Donnelley Printing Company, L.P. Delaware R. R. Donnelley (Santiago) Holdings, Inc. Delaware R. R. Donnelley Technology Services LLC Delaware Peak Technologies, Inc. Illinois M/B Companies, Inc. Iowa R. R. Donnelley Receivables, Inc. Nevada FRDK, Inc. New York The Nielsen Company Ohio R. R. Donnelley Norwest Inc. Oregon Heritage Preservation Corporation South Carolina Omega Studios-Southwest, Inc. Texas Iridio, Inc. Washington R. R. Donnelley Argentina S.A. Argentina MCL Argentina S.A. Argentina MI Insurance (Barbados) Ltd. Barbados Moore Paragon (Caribbean) Ltd. Barbados Moore Belgium N.V. Belgium Moore Group Services B.V.B.A. Belgium Moore Response Marketing N.V. Belgium Donnelley Cochrane Graficos Editora do Brazil Brasil Limitada Matrix Distribudora de Directorios S A. Brazil Moore Brasil Limitada Brazil Moore Canada Canada Moore Wallace Incorporated Canada R. R. Donnelley Canada, Inc. Canada R. R. Donnelley Nova Scotia Company Canada R. R. Donnelley Chile Limitada Chile R. R. Donnelley (Asia) Trading Ltd. China R. R. Donnelley Financial Asia Limited China Shanghai Donnelley Printing Co., Ltd. China Shenzhen Donnelley Bright Sun Printing China Co. Ltd. Moore de Centro America S.A Costa Rico Moore de Centro America, S.A. de C.V. El Salvador Moore Response Marketing S.A. France R. R. Donnelley Printing (France) S.A.R.L. France
  • 136. Accuscan GmbH Germany Moore Response Marketing GmbH Germany Peak Technologies GmbH Germany Peak Technologies Holdings GmbH Germany R. R. Donnelley Deutschland Gmbh Germany Moore de Centro America S.A. Guatemala Moore de Centro America, S.A. de C.V. Honduras ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 137. DONNELLEY R R & SONS CO 10-K 03/14/2005 Subsidiaries of R. R. Donnelley Sons Company Subsidiaries of R. R. Donnelley & Sons Company Place of Incorporation Moore International Hungary Financial Hungary Services Kft. R. R. Donnelley Hungary Printing and Trading Hungary Kft. R. R. Donnelley Luxembourg S.A.R.L. Luxembourg R. R. Donnelley (Mauritius) Holdings Ltd. Mauritius Commercializadora Moore de Mexico Mexico Impresora Donneco Internacional, S.A. Mexico de C.V. Laboratorio Lito Color S.A. de C.V. Mexico Moore de Mexico, S.A. de C.V. Mexico Moore de Mexico Holdings, S.A. de C.V. Mexico R. R. Donnelley (Mexico) S.A. de C.V. Mexico Sierra Industrial, S.A. de C.V. Mexico R. R. Donnelley Servicios S.A. de C.V. Mexico FGSU Holdings B.V. The Netherlands Peak Technologies Benelux B.V. The Netherlands Moore IMS B.V. The Netherlands Moore International B.V. The Netherlands Moore Response Marketing B.V. The Netherlands R. R. Donnelley Europe B.V. The Netherlands R. R. Donnelley Holdings B.V. The Netherlands R. R. Donnelley Holdings C.V. The Netherlands R. R. Donnelley Europe, Sp. zo. o. Poland R. R. Donnelley Poland, Sp. zo. o. Poland Moore Business Forms de Puerto Rico Puerto Rico Peak Technologies (Schwiez) A.G. Switzerland Moore Trinidad Ltd. Trinidad Accuscan International Ltd. United Kingdom Moore Business Forms Limited United Kingdom Moore Business Forms Holdings U.K. Limited United Kingdom Moore Business Forms Pensions Trustees United Kingdom U.K. Limited Moore Response Marketing Limited United Kingdom Peak Technologies Holdings Limited United Kingdom Peak Technologies U.K. Limited United Kingdom R. R. Donnelley U.K. Directory Limited United Kingdom R. R. Donnelley (U.K.) Limited United Kingdom Inversiones Moore C.A. Venezuela Moore Technology and Trading C.A. Venezuela Moore de Venezuela S.A. Venezuela ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 138. DONNELLEY R R & SONS CO 10-K 03/14/2005 SIZE=quot;2quot;>5. The registrant s other certifying officer Date: March 14, 2005 /S / M ARK A. A NGELSON Mark A. Angelson Chief Executive Officer ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 139. DONNELLEY R R & SONS CO 10-K 03/14/2005 STYLE=quot;margin-top:0px;margin-bottom:0pxquot;><FONT FACE=quot;Times /S / K EVIN J. S MITH Kevin J. Smith Executive Vice President and Chief Financial Officer ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 140. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE /S / M ARK A. A NGELSON Mark A. Angelson Chief Executive Officer ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/
  • 141. DONNELLEY R R & SONS CO 10-K 03/14/2005 NO TITLE /S / K EVIN J. S MITH Kevin J. Smith Chief Financial Officer ____________________________ Created by 10-K Wizard Tech. http://www.10kwizard.com/