Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DFIN | |
Entity Registrant Name | Donnelley Financial Solutions, Inc. | |
Entity Central Index Key | 1,669,811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 34,100,000 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Operations (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Total net sales | $ 216.9 | $ 222.6 | $ 762.7 | $ 780.1 | ||
Services cost of sales (exclusive of depreciation and amortization) | 75.5 | 81.7 | 253.4 | 240.2 | ||
Products cost of sales (exclusive of depreciation and amortization) | 57.8 | 58.9 | 204.1 | 190.7 | ||
Total cost of sales | 133.3 | 140.6 | 457.5 | 482.7 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 62.6 | 54.8 | 203.8 | 173.7 | ||
Restructuring, impairment and other charges-net | 0.8 | (0.6) | 4.1 | 6.4 | ||
Depreciation and amortization | 11.6 | 10.6 | 33.1 | 31.7 | ||
Other operating income | (53.5) | 0 | (53.5) | 0 | ||
Income from operations | 62.1 | 17.2 | 117.7 | 85.6 | ||
Interest expense-net | 8.4 | 10.6 | 27.2 | 32.7 | ||
Investment and other income-net | (14) | (0.8) | (15.6) | (2.5) | ||
Earnings before income taxes | 67.7 | 7.4 | 106.1 | 55.4 | ||
Income tax expense | 19.7 | 2.1 | 31.5 | 22 | ||
Net earnings | $ 48 | $ 5.3 | $ 74.6 | $ 33.4 | ||
Net earnings per share (Note 12): | ||||||
Basic net earnings per share | $ 1.42 | $ 0.16 | $ 2.21 | $ 1.01 | ||
Diluted net earnings per share | $ 1.40 | $ 0.16 | $ 2.19 | $ 1.01 | ||
Weighted average number of common shares outstanding | ||||||
Basic | 33.9 | 33.6 | 33.8 | 33 | ||
Diluted | 34.2 | 33.8 | 34 | 33.2 | ||
Services Net Sales | ||||||
Total net sales | $ 138.5 | $ 140.3 | $ 485.9 | $ 471.4 | ||
Products Net Sales | ||||||
Total net sales | 78.4 | 82.3 | 276.8 | 308.7 | ||
R.R. Donnelley Affiliates | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 0 | 0 | 19.5 | [2] |
Products cost of sales (exclusive of depreciation and amortization) | [1] | $ 0 | $ 0 | $ 0 | $ 32.3 | [2] |
[1] | Beginning in the quarter ended June 30, 2017, LSC Communications (“LSC”) no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, R.R. Donnelley & Sons Company (“RRD”) no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. | |||||
[2] | Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 48 | $ 5.3 | $ 74.6 | $ 33.4 |
Other comprehensive (loss) income, net of tax: | ||||
Translation adjustments | 0.4 | 2.2 | (2.3) | 4.6 |
Adjustment for net periodic pension and other postretirement benefits plan cost | 0.4 | 0.3 | 1.4 | 1 |
Other comprehensive income (loss), net of tax | 0.8 | 2.5 | (0.9) | 5.6 |
Comprehensive income | $ 48.8 | $ 7.8 | $ 73.7 | $ 39 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 56.2 | $ 52 |
Receivables, less allowances for doubtful accounts of $8.7 in 2018 (2017 - $7.3) | 221.5 | 165.2 |
Inventories | 13.8 | 23.3 |
Prepaid expenses and other current assets | 16.4 | 29.6 |
Total current assets | 307.9 | 270.1 |
Property, plant and equipment-net | 31.7 | 34.7 |
Goodwill | 437.5 | 447.4 |
Other intangible assets-net | 29.3 | 39.9 |
Software-net | 46.4 | 41.1 |
Deferred income taxes | 14 | 22.2 |
Other noncurrent assets | 46.6 | 38.1 |
Total assets | 913.4 | 893.5 |
LIABILITIES | ||
Accounts payable | 67.5 | 67.8 |
Accrued liabilities | 137.3 | 119.2 |
Total current liabilities | 204.8 | 187 |
Long-term debt (Note 15) | 397.2 | 458.3 |
Deferred compensation liabilities | 21.7 | 22.8 |
Pension and other postretirement benefits plan liabilities | 47.7 | 52.5 |
Other noncurrent liabilities | 10.3 | 23.5 |
Total liabilities | 681.7 | 744.1 |
Commitments and Contingencies (Note 16) | ||
EQUITY | ||
Preferred stock, $0.01 par value Authorized: 1.0 shares; Issued: None | 0 | 0 |
Common stock, $0.01 par value Authorized: 65.0 shares Issued: 34.1 shares in 2018 (2017 - 33.8 shares) | 0.3 | 0.3 |
Treasury stock, at cost: 0.1 shares in 2018 (2017 - less than 0.1 shares) | (1.7) | (0.9) |
Additional paid-in-capital | 214.2 | 205.7 |
Retained earnings | 84.4 | 8.9 |
Accumulated other comprehensive loss | (65.5) | (64.6) |
Total equity | 231.7 | 149.4 |
Total liabilities and equity | $ 913.4 | $ 893.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables, allowance for doubtful accounts | $ 8.7 | $ 7.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 65,000,000 | 65,000,000 |
Common stock, Issued | 34,100,000 | 33,800,000 |
Treasury stock, Shares | 100,000 | |
Maximum | ||
Treasury stock, Shares | 100,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 74.6 | $ 33.4 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Impairment charges | 0 | 0.2 |
Depreciation and amortization | 33.1 | 31.7 |
Provision for doubtful accounts receivable | 4.5 | 4.3 |
Share-based compensation | 7.2 | 5.2 |
Deferred income taxes | 6.4 | (2.7) |
Changes in uncertain tax positions | (0.2) | (0.2) |
Net pension plan income | (2.4) | (2.5) |
Gain on change in fair value of investment | (11.8) | 0 |
Gain on disposition | (53.5) | 0 |
Other | 0.6 | 1.7 |
Changes in operating assets and liabilities - net of acquisitions: | ||
Accounts receivable - net | (70.8) | (36.6) |
Inventories | (2.7) | 0.6 |
Prepaid expenses and other current assets | 2.5 | (2) |
Accounts payable | 3.4 | (11.7) |
Income taxes payable and receivable | 17.2 | 3.7 |
Accrued liabilities and other | 4 | 10.3 |
Pension and other postretirement benefits plan contributions | (1.7) | (1.7) |
Net cash provided by operating activities | 10.4 | 33.7 |
INVESTING ACTIVITIES | ||
Capital expenditures | (22.8) | (20) |
Sale (purchase) of investment | 3.1 | (3.4) |
Proceeds from disposition | 77.1 | 0 |
Other investing activities | 0 | 0.3 |
Net cash provided by (used in) investing activities | 57.4 | (23.1) |
FINANCING ACTIVITIES | ||
Revolving facility borrowings | 255 | 230 |
Payments on revolving facility borrowings | (255) | (230) |
Payments on long-term debt | (62.5) | (100) |
Proceeds from the issuance of common stock | 1.2 | 18.8 |
Treasury share repurchases | (0.8) | (0.9) |
Debt issuance costs | 0 | (1.5) |
Separation-related payment from R.R. Donnelley | 0 | 68 |
Other financing activities | 0 | 0.4 |
Net cash used in financing activities | (62.1) | (15.2) |
Effect of exchange rate on cash and cash equivalents | (1.5) | 0.6 |
Net increase (decrease) in cash and cash equivalents | 4.2 | (4) |
Cash and cash equivalents at beginning of year | 52 | 36.2 |
Cash and cash equivalents at end of period | $ 56.2 | $ 32.2 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Description of Business Donnelley Financial Solutions, Inc. (the Donnelley Financial’s Registration Statement on Form 10, as amended, was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 20, 2016. On October 1, 2016, Donnelley Financial became an independent publicly traded company through the distribution by R.R. Donnelley & Sons Company (“RRD”) of approximately 26.2 million shares, or 80.75%, of Donnelley Financial common stock to RRD shareholders (the “Separation”). Holders of RRD common stock received one share of Donnelley Financial common stock for every eight shares of RRD common stock held on September 23, 2016. As part of the Separation, RRD retained approximately 6.2 million shares of Donnelley Financial common stock, or a 19.25% interest in Donnelley Financial. Donnelley Financial’s common stock began regular-way trading under the ticker symbol “DFIN” on the New York Stock Exchange on October 3, 2016. On October 1, 2016, RRD also completed the previously announced separation of LSC Communications, Inc. (“LSC”), its publishing and retail-centric print services and office products business. On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore amounts disclosed related to LSC are presented through March 31, 2017 only. On March 24, 2017, pursuant to the Stockholder and Registration Rights Agreement, dated as of September 30, 2016, by and between the Company and RRD, the Company filed a Registration Statement on Form S-1 to register the offering and sale of shares of the Company’s common stock retained by RRD. The Registration Statement on Form S-1, as amended, was declared effective by the SEC on June 13, 2017. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon the consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. In conjunction with the underwritten public offering, the underwriters exercised their option to purchase approximately 0.9 million of the Company’s shares (the “Option Shares”). The Company received approximately $18.8 million in net proceeds from the sale of the Option Shares, after deducting estimated underwriting discounts and commissions. The proceeds were used to reduce outstanding debt under the Revolving Facility (as defined in Note 15, Debt ). Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore amounts disclosed related to RRD are presented through June 30, 2017 only. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Donnelley Financial and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The financial data presented herein should be read in conjunction with the audited consolidated and combined financial statements and accompanying notes included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 28, 2018. In the opinion of management, the financial data presented includes all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. Results of interim periods should not be considered indicative of the results for the full year. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Changes in Presentation Certain prior year amounts have been restated to conform to the Company’s current reporting unit structure. Due to the sale of the Language Solutions business, the Company made changes to the reporting units within the U.S. segment. The former Language Solutions and other reporting unit has been renamed “Language Solutions.” Certain results previously included within the former Language Solutions and other reporting unit are now included within the Investment Markets reporting unit. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue | Note 2. Revenue Revenue Recognition The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers, manages virtual data rooms and performs XBRL and related services. Clients are provided with EDGAR filing services, XBRL compliance services and translation, editing, interpreting, proof-reading and multilingual typesetting services, among others. The Company’s software-as-a-service solutions (“SaaS”) include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. Generally, customer payment is due within ten days upon invoicing. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Revenue for the Company’s services and products is recognized either over time or at a point in time, as outlined below. Over time The Company recognizes revenue for certain services over time. • The Company’s SaaS solutions, including the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure, data and analytics and others, are generally provided on a subscription basis and allow customers access to use the products over the contract period. As a result, revenue for SaaS solutions are recognized ratably over time as the customer receives the benefit throughout the contract period. The timing of invoicing varies, however the customer may be invoiced before the end of the contract period, resulting in a deferred revenue balance. • Revenue for warehousing services are recognized ratably over time as the customer receives the benefit throughout the storage period. Point in time All remaining revenue arrangements are generally recognized at a point in time and are primarily invoiced upon completion of all services or upon shipment to the customer. • Certain of these arrangements include multiple performance obligations and revenue is recognized upon completion of each performance obligation, such as when a document is filed with a regulatory agency and upon completion of printing the related document. For arrangements with multiple performance obligations, the transaction price is allocated to the separate performance obligations. The Company provides customer specific solutions and as such, observable standalone selling price is rarely available. Standalone selling price is more frequently determined using an estimate of the standalone selling price of each distinct service or product, taking into consideration historical selling price by customer for each distinct service or product. These estimates may vary from the final amounts invoiced to the customer and are adjusted upon completion of all performance obligations. Customers may be invoiced subsequent to the recognition of revenue for completed performance obligations , resulting in contract asset balances. • Revenue for arrangements which include assisting customers in completing regulatory filings for transactions, such as mergers and acquisitions or other public capital market transactions, is recognized upon completion of all promises, including the services performed and printing of the related document, if applicable. • Revenue for arrangements without a regulatory filing generally have a single performance obligation, as the services and products provided are not distinct within the context of the contract, and are recognized upon completion of the services performed or upon completion of printing of the related product . • Warehousing, fulfillment services and shipping and handling are each separate performance obligations. As a result, when the Company provides warehousing and future fulfillment services, revenue for the composition services performed and printing of the product is recognized upon completion of the performance obligation(s), as control of the inventory has transferred to the customer and the inventory is being stored at the customer’s request. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue when amounts are invoiced but the revenue recognition criteria are not yet met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. Adoption of ASU 2014-09 In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. On January 1, 2018, the Company adopted the standard and all related amendments, using the modified retrospective approach applied to contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the standard as an opening transition adjustment to retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods (“Previous Revenue Standard”). As a result of the adoption of ASU 2014-09, revenue recognition has been accelerated for certain arrangements with multiple performance obligations as revenue is now recognized upon the completion of each performance obligation rather than upon completion of all services and shipment of the related document, if applicable. Revenue has also been accelerated for certain inventory which has been invoiced but not yet shipped at the customer’s request. Additionally, certain revenues related to virtual data room services have been deferred to be recognized over the term of the contract. As substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less, the Company has applied the practical expedient for performance obligations related to contracts with an initial duration of less than one year and is therefore not required to disclose information regarding remaining performance obligations at the end of the reporting period. The Company has also elected the practical expedient to recognize costs to obtain the contract, primarily commissions, as incurred. The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows: Balance at December 31, 2017 Adoption of ASU 2014-09 Balance at January 1, 2018 Assets Receivables, less allowances for doubtful accounts $ 165.2 $ 8.9 $ 174.1 Inventories 23.3 (10.6 ) 12.7 Deferred income taxes 22.2 (0.5 ) 21.7 Total assets 893.5 (2.2 ) 891.3 Liabilities Accrued liabilities 119.2 (3.1 ) 116.1 Equity Retained earnings 8.9 0.9 9.8 Total liabilities and equity $ 893.5 $ (2.2 ) $ 891.3 The impact of the adoption of ASU 2014-09 on the Company’s condensed consolidated statement of operations for the three months and nine months ended September 30, 2018 and condensed consolidated balance sheet as of September 30, 2018 was as follows: Three Months Ended September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 139.1 $ (0.6 ) $ 138.5 Products net sales 80.3 $ (1.9 ) 78.4 Total net sales 219.4 (2.5 ) 216.9 Services cost of sales (exclusive of depreciation and amortization) 75.5 — 75.5 Products costs of sales (exclusive of depreciation and amortization) 60.0 (2.2 ) 57.8 Total cost of sales 135.5 (2.2 ) 133.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) 62.6 — 62.6 Income tax expense (benefit) 19.8 (0.1 ) 19.7 Net earnings $ 48.2 $ (0.2 ) $ 48.0 Earnings per share Basic 1.43 (0.01 ) 1.42 Diluted 1.41 (0.01 ) 1.40 Nine Months Ended September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 484.9 $ 1.0 $ 485.9 Products net sales 278.6 (1.8 ) 276.8 Total net sales 763.5 (0.8 ) 762.7 Services cost of sales (exclusive of depreciation and amortization) 253.0 0.4 253.4 Products costs of sales (exclusive of depreciation and amortization) 205.0 (0.9 ) 204.1 Total cost of sales 458.0 (0.5 ) 457.5 Selling, general and administrative expenses (exclusive of depreciation and amortization) 203.8 — 203.8 Income tax expense (benefit) 31.6 (0.1 ) 31.5 Net earnings $ 74.8 $ (0.2 ) $ 74.6 Earnings per share Basic 2.22 (0.01 ) 2.21 Diluted 2.20 (0.01 ) 2.19 September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Assets Receivables, less allowances for doubtful accounts $ 215.7 $ 5.8 $ 221.5 Inventories 23.8 (10.0 ) 13.8 Deferred income taxes 14.5 (0.5 ) 14.0 Total assets 918.1 (4.7 ) 913.4 Liabilities Accrued liabilities 142.7 (5.4 ) 137.3 Equity Retained earnings 83.7 0.7 84.4 Total liabilities and equity $ 918.1 $ (4.7 ) $ 913.4 Disaggregation of revenue The following tables disaggregates revenue by reporting unit and timing of revenue recognition for the three and nine months ended September 30, 2018: Three Months Ended September 30, 2018 Point in time Over time Total U.S. Capital Markets $ 78.1 $ 24.4 $ 102.5 Investment Markets* 70.1 11.7 81.8 Language Solutions* 1.2 — 1.2 Total U.S. 149.4 36.1 185.5 International 26.7 4.7 31.4 Total net sales $ 176.1 $ 40.8 $ 216.9 Nine Months Ended September 30, 2018 Point in time Over time Total U.S. Capital Markets $ 292.1 $ 72.5 $ 364.6 Investment Markets* 224.2 38.6 262.8 Language Solutions* 13.7 — 13.7 Total U.S. 530.0 111.1 641.1 International 107.9 13.7 121.6 Total net sales $ 637.9 $ 124.8 $ 762.7 * Certain prior quarter amounts were restated to conform to the Company’s current reporting unit structure. Contract Balances Contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing has not yet occurred. Contract assets were $ 6.1 Contract liabilities consist of deferred revenue and progress billings which are included in accrued liabilities on the condensed consolidated balance sheet. Changes in contract liabilities were as follows: Balance at January 1, 2018 $ 14.2 Deferral of revenue 35.4 Revenue recognized (35.9 ) Disposition (1.6 ) Balance at September 30, 2018 $ 12.1 |
Disposition
Disposition | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposition | Note 3. Disposition On July 22, 2018, the Company sold its Language Solutions business, which helped companies adapt their business content into different languages for specific countries, markets and regions, for net proceeds of $77.5 million in cash, substantially all of which was received as of September 30, 2018, resulting in a gain of $53.5 million, which was recognized in other operating income in the condensed consolidated statement of operations for the three and nine months ended September 30, 2018. Language Solutions' operating results were included within the Language Solutions reporting unit within the U.S. segment as well as the International segment. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Raw materials and manufacturing supplies $ 3.2 $ 3.3 Work in process 10.6 13.7 Finished goods — 6.3 Total $ 13.8 $ 23.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment The components of the Company’s property, plant and equipment at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Land $ 10.0 $ 10.0 Buildings 36.3 36.1 Machinery and equipment 105.3 104.0 151.6 150.1 Less: Accumulated depreciation (119.9 ) (115.4 ) Total $ 31.7 $ 34.7 Depreciation expense was $1.6 million and $1.9 million for the three months ended September 30, 2018 and 2017, respectively, and $5.4 million and $5.0 million for the nine months ended September 30, 2018 and 2017, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018 were as follows: U.S. International Total Net book value as of December 31, 2017 $ 429.2 $ 18.2 $ 447.4 Disposition (3.5 ) (5.8 ) (9.3 ) Foreign exchange and other adjustments — (0.6 ) (0.6 ) Net book value as of September 30, 2018 $ 425.7 $ 11.8 $ 437.5 The components of other intangible assets at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 139.5 $ (110.2 ) $ 29.3 $ 140.6 $ (100.7 ) $ 39.9 Trade names 2.9 (2.9 ) — 2.9 (2.9 ) — Total other intangible assets $ 142.4 $ (113.1 ) $ 29.3 $ 143.5 $ (103.6 ) $ 39.9 Amortization expense for other intangible assets was $3.4 million and $3.6 million for the three months ended September 30, 2018 and 2017, respectively, and $10.3 million and $10.7 million for the nine months ended September 30, 2018 and 2017, respectively. The following table outlines the estimated annual amortization expense related to other intangible assets as of September 30, 2018: For the year ending December 31, Amount 2018 $ 13.7 2019 13.7 2020 12.2 2021 — 2022 — 2023 and thereafter — Total $ 39.6 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 7. Investments In January 2016, the FASB issued Accounting Standards Update No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires that investments in equity securities, except those accounted for under the equity method of accounting or those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. The Company adopted ASU 2016-01 on January 1, 2018. Upon adoption of ASU 2016-01, there was no material impact on the Company’s consolidated financial position, results of operations or cash flows. The carrying value of the Company’s equity investments within the scope of ASU 2016-01 was $23.6 million and $14.9 million as of September 30, 2018 and December 31, 2017, respectively. The Company measures its equity investments that do not have a readily determinable fair value, at The following table summarizes realized and unrealized gains and losses on equity investments recognized in investment and other income in the unaudited condensed consolidated statements of operations during the three and nine months ended September 30, 2018: Three months ended September 30, 2018 Nine months ended September 30, 2018 Net gain on equity securities $ 11.8 $ 11.8 Less: net gain recognized on equity securities sold (2.4 ) (2.4 ) Unrealized net gain recognized on equity securities still held at the reporting date $ 9.4 $ 9.4 |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other Charges | Note 8. Restructuring, Impairment and Other Charges Restructuring, Impairment and Other Charges recognized in Results of Operations For the three months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Three Months Ended Employee Other Restructuring Total Restructuring September 30, 2018 Terminations Charges Charges Total U.S. $ 0.6 $ — $ 0.6 $ 0.6 International 0.1 — 0.1 0.1 Corporate 0.1 — 0.1 0.1 Total $ 0.8 $ — $ 0.8 $ 0.8 Three Months Ended Employee Other Restructuring Total Restructuring September 30, 2017 Terminations Charges Charges Total U.S. $ 0.2 $ (1.0 ) $ (0.8 ) $ (0.8 ) International 0.1 — 0.1 0.1 Corporate 0.1 — 0.1 0.1 Total $ 0.4 $ (1.0 ) $ (0.6 ) $ (0.6 ) For the nine months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2018 Terminations Charges Charges Charges Total U.S. $ 1.1 $ 0.7 $ 1.8 $ 0.1 $ 1.9 International 1.9 — 1.9 — 1.9 Corporate 0.3 — 0.3 — 0.3 Total $ 3.3 $ 0.7 $ 4.0 $ 0.1 $ 4.1 Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total U.S. $ 3.2 $ 0.9 $ 4.1 $ 0.2 $ 0.1 $ 4.4 International 1.3 — 1.3 — — 1.3 Corporate 0.7 — 0.7 — — 0.7 Total $ 5.2 $ 0.9 $ 6.1 $ 0.2 $ 0.1 $ 6.4 Restructuring and Impairment Charges For the three and nine months ended September 30, 2018, the Company recorded net restructuring charges of $0.8 million and $3.3 million, respectively, for employee termination costs for 76 employees, substantially all of whom were terminated as of September 30, 2018. These charges primarily related to the reorganization of certain operations. Additionally, the Company incurred net lease termination and other restructuring charges of $0.7 million for the nine months ended September 30, 2018. For the three and nine months ended September 30, 2017, the Company recorded net restructuring charges of $0.4 million and $5.2 million, respectively, for employee termination costs for 169 employees, all of whom were terminated as of September 30, 2018. These charges primarily related to the reorganization of certain operations and certain administrative functions. Additionally, the Company recognized a net reversal of $1.0 million of other restructuring charges during the three months ended September 30, 2017, primarily due to the reversal of previously recognized lease termination costs associated with a facility that the Company began using during the third quarter of 2017. The Company incurred net lease termination and other restructuring charges of $0.9 million for the nine months ended September 30, 2017. For the nine months ended September 30, 2017, the Company also recorded $0.2 million of net impairment charges primarily related to leasehold improvements associated with facility closures. The nine months ended September 30, 2017 includes $0.1 million for other charges associated with the Company’s decision to withdraw in 2013 from certain multi-employer pension plans serving facilities that continued to operate. Restructuring Reserve The restructuring reserve as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: December 31, Restructuring Cash September 30, 2017 Charges Reversals Paid 2018 Employee terminations $ 1.3 $ 3.5 $ (0.2 ) $ (3.3 ) $ 1.3 Lease terminations and other 2.1 0.7 — (1.3 ) 1.5 Total $ 3.4 $ 4.2 $ (0.2 ) $ (4.6 ) $ 2.8 The current portion of restructuring reserves of $2.3 million at September 30, 2018 was included in accrued liabilities, while the long-term portion of $0.5 million, primarily related to lease termination costs, was included in other noncurrent liabilities at September 30, 2018. The Company anticipates that payments associated with the employee terminations reflected in the table above will be substantially completed by December 31, 2018. The restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2021. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 9. Retirement Plans The components of the estimated net pension plan income for Donnelley Financial’s pension plans for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Pension expense (income) Interest cost $ 2.6 $ 2.6 $ 7.7 $ 7.9 Expected return on assets (4.0 ) (4.0 ) (12.0 ) (12.0 ) Amortization, net 0.6 0.6 1.9 1.6 Net pension income $ (0.8 ) $ (0.8 ) $ (2.4 ) $ (2.5 ) During the first quarter of 2018, the Company adopted Accounting Standards Update No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which requires an employer to report the service cost component of net periodic benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are presented in the income statement separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. ASU 2017-07 was adopted on a retrospective basis. The adoption of ASU 2017-07 resulted in the presentation of net pension income within investment and other income in the condensed consolidated statement of operations instead of selling, general and administrative expenses. Prior period net pension income was also reclassified. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s provision for income taxes for the three and nine months ended September 30, 2018 and 2017 is based on the estimated annual effective tax rate, plus discrete items. The following table presents the provision for income taxes and the effective income tax rates for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 $ Change % Change (in millions, except percentages) Earnings before income taxes $ 67.7 $ 7.4 $ 60.3 814.9 % Income tax expense 19.7 2.1 17.6 838.1 % Effective income tax rate 29.1 % 28.4 % Nine Months Ended September 30, 2018 2017 $ Change % Change (in millions, except percentages) Earnings before income taxes $ 106.1 $ 55.4 $ 50.7 91.5 % Income tax expense 31.5 22.0 9.5 43.2 % Effective income tax rate 29.7 % 39.7 % Cash payments (net of refunds) for U.S. federal, states and foreign income taxes were $1.5 million and $8.9 million for the three months ended September 30, 2018 and 2017, respectively, and $7.6 million and $21.8 million for the nine months ended September 30, 2018 and 2017, respectively. The decrease in the effective income tax rate to 29.7% for the nine months ended September 30, 2018 compared to 39.7% for the nine months ended September 30, 2017 was primarily due to changes in U.S. corporate tax law pursuant to the enactment of the U.S. Federal Tax Cut and Jobs Act (“the Tax Act”) on December 22, 2017, and includes a reduction of the corporate income tax from 35% to 21%, partially offset by an increase in non-deductible expenses and the taxation of certain foreign earnings referred to in the Tax Act as global intangible low-taxed income. The effective income tax rate for the nine months ended September 30, 2018 also reflects the tax impact of the sale of the Language Solutions business. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the tax effects and recorded provisional amounts in its consolidated financial statements for the year ended December 31, 2017. Staff Accounting Bulletin No. 118 (“SAB 118”) provided a measurement period of one year from the Tax Act enactment date for companies to complete their accounting for the enactment-date effects of the Tax Act that were considered provisional estimates at December 31, 2017. During the first quarter of 2018, the Company recognized a measurement-period adjustment of $0.4 million to decrease the income tax liability with a corresponding $0.4 million income tax benefit related to the one-time transition tax on foreign subsidiaries’ untaxed accumulated earnings. The Company is continuing to gather and review additional information needed to complete the accounting for the tax effects of the Tax Act. As a result, the Company has not made any additional measurement-period adjustments during the three months ended September 30, 2018 with respect to the one-time transition tax, re-measurement of deferred tax assets and liabilities and the Company’s indefinite reinvestment assertion. The Company will complete its accounting for these items within the prescribed measurement period. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | Note 11. Equity The Company’s equity as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Total Equity Balance at December 31, 2017 $ 149.4 Net earnings 74.6 Other comprehensive income (0.9 ) Adoption of ASU 2014-09 0.9 Share-based compensation 7.2 Issuance of share-based awards, net of withholdings and other 0.5 Balance at September 30, 2018 $ 231.7 The Company’s equity as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: Total Equity Balance at December 31, 2016 $ 111.1 Net earnings 33.4 Other comprehensive income 5.6 Separation-related adjustments 0.2 Share-based compensation 5.2 Issuance of common stock 18.8 Issuance of share-based awards, net of withholdings and other (0.7 ) Balance at September 30, 2017 $ 173.6 Separation-related adjustments primarily relate to adjustments arising from the finalization of tax returns for periods prior to the Separation as well as the settlement of balances due to or from RRD for activity prior to the Separation. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12. Earnings per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including restricted stock units and restricted stock. The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net earnings per share: Basic $ 1.42 $ 0.16 $ 2.21 $ 1.01 Diluted $ 1.40 $ 0.16 $ 2.19 $ 1.01 Numerator: Net earnings $ 48.0 $ 5.3 $ 74.6 $ 33.4 Denominator: Weighted average number of common shares outstanding 33.9 33.6 33.8 33.0 Dilutive awards 0.3 0.2 0.2 0.2 Diluted weighted average number of common shares outstanding 34.2 33.8 34.0 33.2 Weighted average number of anti-dilutive share-based awards: Restricted stock units — — 0.3 0.2 Stock options 0.6 0.4 0.6 0.3 Total 0.6 0.4 0.9 0.5 |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income | Note 13. Comprehensive Income The components of other comprehensive (loss) income and income tax expense allocated to each component for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 0.4 $ — $ 0.4 $ (2.3 ) $ — $ (2.3 ) Adjustment for net periodic pension plan and other postretirement benefits plan cost 0.6 0.2 0.4 1.9 0.5 1.4 Other comprehensive income (loss) $ 1.0 $ 0.2 $ 0.8 $ (0.4 ) $ 0.5 $ (0.9 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 2.2 $ — $ 2.2 $ 4.6 $ — $ 4.6 Adjustment for net periodic pension plan and other postretirement benefits plan cost 0.6 0.3 0.3 1.6 0.6 1.0 Other comprehensive income $ 2.8 $ 0.3 $ 2.5 $ 6.2 $ 0.6 $ 5.6 Accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018 were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2017 $ (52.9 ) $ (11.7 ) $ (64.6 ) Other comprehensive income before reclassifications — (2.3 ) (2.3 ) Amounts reclassified from accumulated other comprehensive loss 1.4 — 1.4 Net change in accumulated other comprehensive loss 1.4 (2.3 ) (0.9 ) Balance at September 30, 2018 $ (51.5 ) $ (14.0 ) $ (65.5 ) Accumulated other comprehensive loss by component as of December 31, 2016 and September 30, 2017 were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2016 $ (52.2 ) $ (16.1 ) $ (68.3 ) Other comprehensive income before reclassifications — 4.6 4.6 Amounts reclassified from accumulated other comprehensive loss 1.0 — 1.0 Net change in accumulated other comprehensive loss 1.0 4.6 5.6 Balance at September 30, 2017 $ (51.2 ) $ (11.5 ) $ (62.7 ) Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended Classification in the Condensed September 30, September 30, Consolidated 2018 2017 2018 2017 Statements of Operations Amortization of pension and other postretirement benefits plan cost: Net actuarial income $ 0.6 $ 0.6 $ 1.9 $ 1.6 (a) Reclassifications before tax 0.6 0.6 1.9 1.6 Income tax expense 0.2 0.3 0.5 0.6 Reclassifications, net of tax $ 0.4 $ 0.3 $ 1.4 $ 1.0 (a) This accumulated other comprehensive loss component is included in the calculation of net periodic pension and other postretirement benefits plan income recognized in investment and other income in the unaudited condensed consolidated statements of operations (see Note 9, Retirement Plans |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14. Segment Information The Company’s segments are summarized below: United States The U.S. segment serves capital market and investment market clients in the U.S. by delivering products and services to help create, manage, and deliver, accurate and timely financial communications to investors and regulators. The Company also provides virtual data rooms to facilitate the deal management requirements of capital markets and mergers and acquisitions transactions, and provides data and analytics services that help professionals uncover intelligence from disclosures contained within public filings made with the SEC. The U.S. segment also includes commercial print. In addition, the U.S. segment included language solutions capabilities, through which the Company translated documents and created content in up to 140 different languages for its clients.* International The International segment includes the Company’s operations in Asia, Europe, Canada and Latin America. The international business is primarily focused on working with international capital markets clients on capital markets offerings and regulatory compliance related activities into or within the United States. In addition, the international segment provided language translation services and shareholder communication services to investment market clients.* *The Company sold its Language Solutions business on July 22, 2018. Refer to Note 3, Disposition Corporate Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, communications and certain facility costs. In addition, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefit plan expense (income) and allocated costs for share-based compensation, are included in Corporate and not allocated to the operating segments. Information by Segment The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated financial statements. Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2018 U.S. $ 187.9 $ (2.4 ) $ 185.5 $ 48.4 $ 10.3 $ 7.2 International 31.9 (0.5 ) 31.4 27.0 1.2 — Total operating segments 219.8 (2.9 ) 216.9 75.4 11.5 7.2 Corporate — — — (13.3 ) 0.1 — Total operations $ 219.8 $ (2.9 ) $ 216.9 $ 62.1 $ 11.6 $ 7.2 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2017 U.S. $ 188.9 $ (2.8 ) $ 186.1 $ 22.4 $ 9.2 $ 7.7 International 37.1 (0.6 ) 36.5 1.5 1.4 0.1 Total operating segments 226.0 (3.4 ) 222.6 23.9 10.6 7.8 Corporate — — — (6.7 ) — 0.2 Total operations $ 226.0 $ (3.4 ) $ 222.6 $ 17.2 $ 10.6 $ 8.0 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Nine Months Ended September 30, 2018 U.S. $ 648.7 $ (7.6 ) $ 641.1 $ 121.7 $ 676.4 $ 28.7 $ 21.6 International 123.1 (1.5 ) 121.6 31.1 99.0 4.0 0.9 Total operating segments 771.8 (9.1 ) 762.7 152.8 775.4 32.7 22.5 Corporate — — — (35.1 ) 138.0 0.4 0.3 Total operations $ 771.8 $ (9.1 ) $ 762.7 $ 117.7 $ 913.4 $ 33.1 $ 22.8 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Nine Months Ended September 30, 2017 U.S. $ 665.8 $ (7.6 ) $ 658.2 $ 107.5 $ 715.3 $ 27.5 $ 18.1 International 124.8 (2.9 ) 121.9 7.6 96.0 4.2 0.8 Total operating segments 790.6 (10.5 ) 780.1 115.1 811.3 31.7 18.9 Corporate — — — (29.5 ) 122.4 — 1.1 Total operations $ 790.6 $ (10.5 ) $ 780.1 $ 85.6 $ 933.7 $ 31.7 $ 20.0 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 15. Debt The Company’s debt as of September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 8.25% senior notes due October 15, 2024 $ 300.0 $ 300.0 Term Loan Credit Facility 106.3 168.6 Borrowings under the Revolving Facility — — Unamortized debt issuance costs (9.1 ) (10.3 ) Total debt 397.2 458.3 Less: current portion — — Long-term debt $ 397.2 $ 458.3 The fair value of the senior notes, which was determined using the market approach based upon interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s senior notes was $316.4 million and $321.5 million at September 30, 2018 and December 31, 2017, respectively. The Company has a Credit Agreement (“the Credit Agreement”) which provides for a $ 350.0 300.0 15.0 The weighted average interest rate on borrowings under the Revolving Facility was 5.1% and 4.4% at September 30, 2018 and 2017, respectively. Interest paid was $19.9 million and $24.2 million for the nine months ended September 30, 2018 and 2017, respectively. The Company’s 8.25% senior unsecured notes due October 15, 2024 (the “Notes”) were issued pursuant to an indenture where certain wholly-owned domestic subsidiaries of the Company guarantee the Notes (the “Guarantors”). The Notes are jointly and severally guaranteed, on an unsecured basis, by the Guarantors, which are comprised of each of the Company’s existing and future direct and indirect wholly-owned U.S. subsidiaries that guarantee the Company’s obligations under the Credit Facilities. The Notes are not guaranteed by the Company’s foreign subsidiaries or unrestricted subsidiaries. The Notes and the related guarantees will be the Company and the Guarantors’, respective, senior unsecured obligations and will rank equally in right of payment to all present and future senior debt, including the obligations under the Company’s Credit Facilities, senior in right of payment to all present and future subordinated debt, and effectively subordinated in right of payment to any of the Company and the Guarantors’ secured debt, to the extent of the value of the assets securing such debt. The indenture governing the Notes contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on: (1) liens; (2) indebtedness; (3) mergers, consolidations and acquisitions; (4) sales, transfers and other dispositions of assets; (5) loans and other investments; (6) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (7) restrictions affecting subsidiaries; (8) transactions with affiliates; and (9) designations of unrestricted subsidiaries. Each of these covenants is subject to important exceptions and qualifications. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Litigation From time to time, the Company’s customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or cash flows. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 17. Related Parties On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. As a result, beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party of the Company and the amounts disclosed related to LSC are presented through March 31, 2017 only. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common. RRD retained approximately 0.1 million shares of the Company’s common stock which RRD sold on August 4, 2017. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party and the amounts disclosed related to RRD are presented through June 30, 2017 only. Transition Services Agreements In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. Commercial Arrangements The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. Sublease Agreement In connection with the Separation, the Company assumed an operating lease through 2024 for the Company’s headquarters. There is a related non-cancelable sublease rental to RRD for the same period. The Company remains secondarily liable under this lease in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreement. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 18. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which deferred the effective date of ASU 2014-09 to January 1, 2018. The Company adopted the standard on January 1, 2018 using the modified retrospective approach. The Company recognized the cumulative effect of applying the standard as an opening transition adjustment to retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Refer to Note 2, Revenue In March 2017, the FASB issued ASU 2017-07, which the Company adopted retrospectively in the first quarter of 2018. Refer to Note 9, Retirement Plans , for further information. Recently Issued Accounting Pronouncements In February 2018, the FASB issued Accounting Standards Update No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Income Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Act to retained earnings. ASU 2018-02 may be applied either in the period of adoption or retrospectively to each period in which the effect of the Tax Act is recognized. ASU 2018-02 is effective in the first quarter of 2019. Early adoption is permitted. The Company is evaluating the impact of ASU 2018-02. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on the balance sheet but recognize expense on the income statement in a manner similar to current accounting. For lessors, ASU 2016-02 also modifies the classification criteria and the accounting for sales-type and direct financing leases. The standard requires a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements and is effective in the first quarter of 2019. In July 2018, the FASB issued Accounting Standards Update 2018-11 (“ASU 2018-11”), which provides an optional transition method to apply ASU 2016-02 in the period of adoption and recognize a cumulative-effect opening transition adjustment to retained earnings, without applying the standard to comparative periods. ASU 2018-11 also provides lessors with a practical expedient to account for lease and associated non-lease components as a single component when certain criteria are met. Early adoption of ASU 2016-02 is permitted; however, the Company will adopt the standard in the first quarter of 2019 and plans to apply the optional transition method upon adoption. The Company is in the process of reviewing its existing lease portfolio, which is primarily comprised of real estate leases, to evaluate the impact of ASU 2016-02 on the consolidated financial statements. The Company currently expects to recognize a lease liability and corresponding right-of-use asset for substantially all operating lease agreements, which will have a significant impact on the Company’s consolidated balance sheet. The Company currently plans to elect the optional package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and therefore, does not expect the adoption of ASU 2016-02 to have a significant impact on the consolidated statement of operations for existing operating leases. The ultimate impact of the standard will depend on the Company’s lease portfolio at the date of adoption. Additionally, the Company is evaluating the processes and internal controls needed to support the changes resulting from the new lease accounting standard. |
Guarantor Financial Information
Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Note 19. Guarantor Financial Information As described in Note 15, Debt The guarantee of the Notes by a subsidiary guarantor will be automatically released under certain situations, including upon the sale or disposition of such subsidiary guarantor to a person that is not Donnelley Financial or a subsidiary guarantor of the notes, the liquidation or dissolution of such subsidiary guarantor, and if such subsidiary guarantor is released from its guarantee obligations under the Company’s Credit Facilities. The following tables set forth condensed consolidating statements of income for the three and nine months ended September 30, 2018 and 2017, condensed consolidating statements of financial position as of September 30, 2018 and December 31, 2017, and condensed consolidating statements of cash flows for the nine months ended September 30, 2018 and 2017. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. For purposes of the tables below, the Company is referred to as “Parent” and the Guarantors are referred to as “Guarantor Subsidiaries.” Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 115.6 $ 24.9 $ (2.0 ) $ 138.5 Products net sales — 72.3 7.0 (0.9 ) 78.4 Total net sales — 187.9 31.9 (2.9 ) 216.9 Services cost of sales (exclusive of depreciation and amortization) — 60.4 16.9 (1.8 ) 75.5 Products cost of sales (exclusive of depreciation and amortization) — 54.3 4.6 (1.1 ) 57.8 Total cost of sales — 114.7 21.5 (2.9 ) 133.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 53.2 9.4 — 62.6 Restructuring, impairment and other charges-net — 0.7 0.1 — 0.8 Depreciation and amortization — 10.4 1.2 — 11.6 Other operating (income) expense — (26.6 ) (26.9 ) — (53.5 ) Income from operations — 35.5 26.6 — 62.1 Interest expense (income)-net 8.6 — (0.2 ) — 8.4 Intercompany interest (income) expense - net (6.1 ) 6.1 — — — Investment and other income-net — (12.6 ) (1.4 ) — (14.0 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (2.5 ) 42.0 28.2 — 67.7 Income tax (benefit) expense (0.8 ) 13.2 7.3 — 19.7 Earnings (loss) before equity in net income of subsidiaries (1.7 ) 28.8 20.9 — 48.0 Equity in net income of subsidiaries 49.7 20.9 — (70.6 ) — Net earnings $ 48.0 $ 49.7 $ 20.9 $ (70.6 ) $ 48.0 Comprehensive income (loss) $ 48.8 $ 50.5 $ 21.5 $ (72.0 ) $ 48.8 Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 397.7 $ 94.1 $ (5.9 ) $ 485.9 Products net sales — 251.0 29.0 (3.2 ) 276.8 Total net sales — 648.7 123.1 (9.1 ) 762.7 Services cost of sales (exclusive of depreciation and amortization) — 196.9 61.6 (5.1 ) 253.4 Products cost of sales (exclusive of depreciation and amortization) — 187.2 20.9 (4.0 ) 204.1 Total cost of sales — 384.1 82.5 (9.1 ) 457.5 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 172.9 30.9 — 203.8 Restructuring, impairment and other charges-net — 2.2 1.9 — 4.1 Depreciation and amortization — 29.1 4.0 — 33.1 Other operating (income) expense — (26.6 ) (26.9 ) — (53.5 ) Income from operations — 87.0 30.7 — 117.7 Interest expense (income)-net 27.9 (0.3 ) (0.4 ) — 27.2 Intercompany interest (income) expense - net (19.4 ) 19.4 — — — Investment and other income-net — (14.2 ) (1.4 ) — (15.6 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (8.5 ) 82.1 32.5 — 106.1 Income tax (benefit) expense (2.6 ) 25.5 8.6 — 31.5 Earnings (loss) before equity in net income of subsidiaries (5.9 ) 56.6 23.9 — 74.6 Equity in net income of subsidiaries 80.5 23.9 — (104.4 ) — Net earnings (loss) $ 74.6 $ 80.5 $ 23.9 $ (104.4 ) $ 74.6 Comprehensive income (loss) $ 73.7 $ 79.6 $ 21.7 $ (101.3 ) $ 73.7 Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 112.3 $ 30.1 $ (2.1 ) $ 140.3 Products net sales — 76.6 7.0 (1.3 ) 82.3 Total net sales — 188.9 37.1 (3.4 ) 222.6 Services cost of sales (exclusive of depreciation and amortization) — 63.6 20.1 (2.0 ) 81.7 Products cost of sales (exclusive of depreciation and amortization) — 56.0 4.3 (1.4 ) 58.9 Total cost of sales — 119.6 24.4 (3.4 ) 140.6 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 45.0 9.8 — 54.8 Restructuring, impairment and other charges-net — (0.7 ) 0.1 — (0.6 ) Depreciation and amortization — 9.2 1.4 — 10.6 Income from operations — 15.8 1.4 — 17.2 Interest expense-net 10.2 0.4 — — 10.6 Investment and other income-net — (0.8 ) — — (0.8 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (10.2 ) 16.2 1.4 — 7.4 Income tax (benefit) expense (5.1 ) 8.4 (1.2 ) — 2.1 Earnings (loss) before equity in net income of subsidiaries (5.1 ) 7.8 2.6 — 5.3 Equity in net income of subsidiaries 10.4 2.6 — (13.0 ) — Net earnings (loss) $ 5.3 $ 10.4 $ 2.6 $ (13.0 ) $ 5.3 Comprehensive income (loss) $ 7.8 $ 12.9 $ 4.8 $ (17.7 ) $ 7.8 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 386.7 $ 91.2 $ (6.5 ) $ 471.4 Products net sales — 279.1 33.6 (4.0 ) 308.7 Total net sales — 665.8 124.8 (10.5 ) 780.1 Services cost of sales (exclusive of depreciation and amortization) — 186.9 59.2 (5.9 ) 240.2 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 18.4 1.1 — 19.5 Products cost of sales (exclusive of depreciation and amortization) — 174.6 20.7 (4.6 ) 190.7 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 30.1 2.2 — 32.3 Total cost of sales — 410.0 83.2 (10.5 ) 482.7 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 145.1 28.6 — 173.7 Restructuring, impairment and other charges-net — 5.1 1.3 — 6.4 Depreciation and amortization — 27.5 4.2 — 31.7 Income from operations — 78.1 7.5 — 85.6 Interest expense-net 32.7 — — — 32.7 Investment and other income-net — (2.5 ) — — (2.5 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (32.7 ) 80.6 7.5 — 55.4 Income tax (benefit) expense (14.4 ) 35.0 1.4 — 22.0 Earnings (loss) before equity in net income of subsidiaries (18.3 ) 45.6 6.1 — 33.4 Equity in net income of subsidiaries 51.7 6.1 — (57.8 ) — Net earnings (loss) $ 33.4 $ 51.7 $ 6.1 $ (57.8 ) $ 33.4 Comprehensive income (loss) $ 39.0 $ 57.3 $ 10.7 $ (68.0 ) $ 39.0 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. Condensed Consolidating Balance Sheet As of September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 20.5 $ 5.6 $ 30.1 $ — $ 56.2 Receivables, less allowances — 183.5 38.0 — 221.5 Intercompany receivables — 116.1 — (116.1 ) — Intercompany short-term note receivable-net — — 45.0 (45.0 ) — Inventories — 10.9 2.9 — 13.8 Prepaid expenses and other current assets — 14.1 2.3 — 16.4 Total current assets 20.5 330.2 118.3 (161.1 ) 307.9 Property, plant and equipment-net — 28.7 3.0 — 31.7 Goodwill — 425.7 11.8 — 437.5 Other intangible assets-net — 24.0 5.3 — 29.3 Software-net — 46.4 — — 46.4 Deferred income taxes — 34.6 2.8 (23.4 ) 14.0 Intercompany long-term note receivable 326.0 — — (326.0 ) — Other noncurrent assets 2.7 37.8 6.1 — 46.6 Investments in consolidated subsidiaries 456.2 109.0 — (565.2 ) — Total assets $ 805.4 $ 1,036.4 $ 147.3 $ (1,075.7 ) $ 913.4 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 53.1 $ 14.4 $ — $ 67.5 Intercompany payables 111.1 — 5.0 (116.1 ) — Intercompany short-term note payable-net 45.0 — — (45.0 ) — Accrued liabilities 18.1 103.3 15.9 — 137.3 Total current liabilities 174.2 156.4 35.3 (161.1 ) 204.8 Long-term debt 397.2 — — — 397.2 Intercompany long-term note payable — 326.0 — (326.0 ) — Deferred compensation liabilities — 21.7 — — 21.7 Pension and other postretirement benefits plan liabilities — 46.6 1.1 — 47.7 Other noncurrent liabilities 2.3 29.5 1.9 (23.4 ) 10.3 Total liabilities 573.7 580.2 38.3 (510.5 ) 681.7 Total equity 231.7 456.2 109.0 (565.2 ) 231.7 Total liabilities and equity $ 805.4 $ 1,036.4 $ 147.3 $ (1,075.7 ) $ 913.4 Condensed Consolidating Balance Sheet As of December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Receivables, less allowances — 131.3 33.9 — 165.2 Intercompany receivables — 146.4 — (146.4 ) — Intercompany short-term note receivable-net — — 30.0 (30.0 ) — Inventories — 21.3 2.0 — 23.3 Prepaid expenses and other current assets 37.1 14.8 2.8 (25.1 ) 29.6 Total current assets 45.4 341.7 84.5 (201.5 ) 270.1 Property, plant and equipment-net — 31.2 3.5 — 34.7 Goodwill — 429.2 18.2 — 447.4 Other intangible assets-net — 32.4 7.5 — 39.9 Software-net — 40.6 0.5 — 41.1 Deferred income taxes — 40.5 3.4 (21.7 ) 22.2 Other noncurrent assets 3.4 30.0 4.7 — 38.1 Investments in consolidated subsidiaries 728.4 85.2 — (813.6 ) — Total assets $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 57.9 $ 9.9 $ — $ 67.8 Intercompany payable 139.5 — 6.9 (146.4 ) — Intercompany short-term note payable-net 30.0 — — (30.0 ) — Accrued liabilities — 127.6 16.7 (25.1 ) 119.2 Total current liabilities 169.5 185.5 33.5 (201.5 ) 187.0 Long-term debt 458.3 — — — 458.3 Deferred compensation liabilities — 22.8 — — 22.8 Pension and other postretirement benefits plan — 51.3 1.2 — 52.5 Other noncurrent liabilities — 42.8 2.4 (21.7 ) 23.5 Total liabilities 627.8 302.4 37.1 (223.2 ) 744.1 Total equity 149.4 728.4 85.2 (813.6 ) 149.4 Total liabilities and equity $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 59.3 $ (38.0 ) $ (10.9 ) $ 10.4 INVESTING ACTIVITIES Capital expenditures — (21.9 ) (0.9 ) — (22.8 ) Sale of investment — 3.1 — — 3.1 Proceeds from disposition — 34.5 42.6 — 77.1 Intercompany note receivable, net — — (15.0 ) 15.0 — Net cash provided by (used in) investing activities — 15.7 26.7 15.0 57.4 FINANCING ACTIVITIES Revolving facility borrowings 255.0 — — — 255.0 Payments on revolving facility borrowings (255.0 ) — — — (255.0 ) Payments on long-term debt (62.5 ) — — — (62.5 ) Intercompany note payable, net 15.0 — — (15.0 ) — Proceeds from the issuance of common stock 1.2 — — — 1.2 Treasury stock repurchases (0.8 ) — — — (0.8 ) Net cash used in financing activities (47.1 ) — — (15.0 ) (62.1 ) Effect of exchange rate on cash and cash equivalents — — (1.5 ) — (1.5 ) Net increase (decrease) in cash and cash equivalents 12.2 (22.3 ) 14.3 — 4.2 Cash and cash equivalents at beginning of year 8.3 27.9 15.8 — 52.0 Cash and cash equivalents at end of period $ 20.5 $ 5.6 $ 30.1 $ — $ 56.2 Supplemental non-cash disclosure: Intercompany debt allocation $ (326.0 ) $ 326.0 $ — $ — $ — Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (4.3 ) $ 21.8 $ 13.8 $ 2.4 $ 33.7 INVESTING ACTIVITIES Capital expenditures — (19.2 ) (0.8 ) — (20.0 ) Purchase of investment — (3.4 ) — — (3.4 ) Intercompany note receivable — — (19.7 ) 19.7 — Other investing activities — 0.3 — — 0.3 Net cash provided by (used in) investing activities — (22.3 ) (20.5 ) 19.7 (23.1 ) FINANCING ACTIVITIES Revolving facility borrowings 230.0 — — — 230.0 Payments on revolving facility borrowings (230.0 ) — — — (230.0 ) Payments on long-term debt (100.0 ) — — — (100.0 ) Debt issuance costs (1.5 ) — — — (1.5 ) Separation-related payment from R.R. Donnelley 68.0 — — — 68.0 Proceeds from the issuance of common stock 18.8 — — — 18.8 Treasury stock repurchases (0.9 ) — — — (0.9 ) Intercompany note payable 19.7 — — (19.7 ) — Other financing activities 0.4 — — — 0.4 Net cash provided by (used in) financing activities 4.5 — — (19.7 ) (15.2 ) Effect of exchange rate on cash and cash equivalents — — 0.6 — 0.6 Net increase (decrease) in cash and cash equivalents 0.2 (0.5 ) (6.1 ) 2.4 (4.0 ) Cash and cash equivalents at beginning of year — 21.8 16.8 (2.4 ) 36.2 Cash and cash equivalents at end of period $ 0.2 $ 21.3 $ 10.7 $ — $ 32.2 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers, manages virtual data rooms and performs XBRL and related services. Clients are provided with EDGAR filing services, XBRL compliance services and translation, editing, interpreting, proof-reading and multilingual typesetting services, among others. The Company’s software-as-a-service solutions (“SaaS”) include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. Generally, customer payment is due within ten days upon invoicing. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Revenue for the Company’s services and products is recognized either over time or at a point in time, as outlined below. Over time The Company recognizes revenue for certain services over time. • The Company’s SaaS solutions, including the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure, data and analytics and others, are generally provided on a subscription basis and allow customers access to use the products over the contract period. As a result, revenue for SaaS solutions are recognized ratably over time as the customer receives the benefit throughout the contract period. The timing of invoicing varies, however the customer may be invoiced before the end of the contract period, resulting in a deferred revenue balance. • Revenue for warehousing services are recognized ratably over time as the customer receives the benefit throughout the storage period. Point in time All remaining revenue arrangements are generally recognized at a point in time and are primarily invoiced upon completion of all services or upon shipment to the customer. • Certain of these arrangements include multiple performance obligations and revenue is recognized upon completion of each performance obligation, such as when a document is filed with a regulatory agency and upon completion of printing the related document. For arrangements with multiple performance obligations, the transaction price is allocated to the separate performance obligations. The Company provides customer specific solutions and as such, observable standalone selling price is rarely available. Standalone selling price is more frequently determined using an estimate of the standalone selling price of each distinct service or product, taking into consideration historical selling price by customer for each distinct service or product. These estimates may vary from the final amounts invoiced to the customer and are adjusted upon completion of all performance obligations. Customers may be invoiced subsequent to the recognition of revenue for completed performance obligations , resulting in contract asset balances. • Revenue for arrangements which include assisting customers in completing regulatory filings for transactions, such as mergers and acquisitions or other public capital market transactions, is recognized upon completion of all promises, including the services performed and printing of the related document, if applicable. • Revenue for arrangements without a regulatory filing generally have a single performance obligation, as the services and products provided are not distinct within the context of the contract, and are recognized upon completion of the services performed or upon completion of printing of the related product . • Warehousing, fulfillment services and shipping and handling are each separate performance obligations. As a result, when the Company provides warehousing and future fulfillment services, revenue for the composition services performed and printing of the product is recognized upon completion of the performance obligation(s), as control of the inventory has transferred to the customer and the inventory is being stored at the customer’s request. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue when amounts are invoiced but the revenue recognition criteria are not yet met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Impact of Adoption of ASU on Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet | The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows: Balance at December 31, 2017 Adoption of ASU 2014-09 Balance at January 1, 2018 Assets Receivables, less allowances for doubtful accounts $ 165.2 $ 8.9 $ 174.1 Inventories 23.3 (10.6 ) 12.7 Deferred income taxes 22.2 (0.5 ) 21.7 Total assets 893.5 (2.2 ) 891.3 Liabilities Accrued liabilities 119.2 (3.1 ) 116.1 Equity Retained earnings 8.9 0.9 9.8 Total liabilities and equity $ 893.5 $ (2.2 ) $ 891.3 The impact of the adoption of ASU 2014-09 on the Company’s condensed consolidated statement of operations for the three months and nine months ended September 30, 2018 and condensed consolidated balance sheet as of September 30, 2018 was as follows: Three Months Ended September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 139.1 $ (0.6 ) $ 138.5 Products net sales 80.3 $ (1.9 ) 78.4 Total net sales 219.4 (2.5 ) 216.9 Services cost of sales (exclusive of depreciation and amortization) 75.5 — 75.5 Products costs of sales (exclusive of depreciation and amortization) 60.0 (2.2 ) 57.8 Total cost of sales 135.5 (2.2 ) 133.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) 62.6 — 62.6 Income tax expense (benefit) 19.8 (0.1 ) 19.7 Net earnings $ 48.2 $ (0.2 ) $ 48.0 Earnings per share Basic 1.43 (0.01 ) 1.42 Diluted 1.41 (0.01 ) 1.40 September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Assets Receivables, less allowances for doubtful accounts $ 215.7 $ 5.8 $ 221.5 Inventories 23.8 (10.0 ) 13.8 Deferred income taxes 14.5 (0.5 ) 14.0 Total assets 918.1 (4.7 ) 913.4 Liabilities Accrued liabilities 142.7 (5.4 ) 137.3 Equity Retained earnings 83.7 0.7 84.4 Total liabilities and equity $ 918.1 $ (4.7 ) $ 913.4 Nine Months Ended September 30, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 484.9 $ 1.0 $ 485.9 Products net sales 278.6 (1.8 ) 276.8 Total net sales 763.5 (0.8 ) 762.7 Services cost of sales (exclusive of depreciation and amortization) 253.0 0.4 253.4 Products costs of sales (exclusive of depreciation and amortization) 205.0 (0.9 ) 204.1 Total cost of sales 458.0 (0.5 ) 457.5 Selling, general and administrative expenses (exclusive of depreciation and amortization) 203.8 — 203.8 Income tax expense (benefit) 31.6 (0.1 ) 31.5 Net earnings $ 74.8 $ (0.2 ) $ 74.6 Earnings per share Basic 2.22 (0.01 ) 2.21 Diluted 2.20 (0.01 ) 2.19 |
Schedule of Disaggregation of Revenue by Reporting Unit and Timing of Revenue Recognition | The following tables disaggregates revenue by reporting unit and timing of revenue recognition for the three and nine months ended September 30, 2018: Three Months Ended September 30, 2018 Point in time Over time Total U.S. Capital Markets $ 78.1 $ 24.4 $ 102.5 Investment Markets* 70.1 11.7 81.8 Language Solutions* 1.2 — 1.2 Total U.S. 149.4 36.1 185.5 International 26.7 4.7 31.4 Total net sales $ 176.1 $ 40.8 $ 216.9 Nine Months Ended September 30, 2018 Point in time Over time Total U.S. Capital Markets $ 292.1 $ 72.5 $ 364.6 Investment Markets* 224.2 38.6 262.8 Language Solutions* 13.7 — 13.7 Total U.S. 530.0 111.1 641.1 International 107.9 13.7 121.6 Total net sales $ 637.9 $ 124.8 $ 762.7 |
Changes in Contract Liabilities | Contract liabilities consist of deferred revenue and progress billings which are included in accrued liabilities on the condensed consolidated balance sheet. Changes in contract liabilities were as follows: Balance at January 1, 2018 $ 14.2 Deferral of revenue 35.4 Revenue recognized (35.9 ) Disposition (1.6 ) Balance at September 30, 2018 $ 12.1 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Raw materials and manufacturing supplies $ 3.2 $ 3.3 Work in process 10.6 13.7 Finished goods — 6.3 Total $ 13.8 $ 23.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Company's Property, Plant and Equipment | The components of the Company’s property, plant and equipment at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Land $ 10.0 $ 10.0 Buildings 36.3 36.1 Machinery and equipment 105.3 104.0 151.6 150.1 Less: Accumulated depreciation (119.9 ) (115.4 ) Total $ 31.7 $ 34.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018 were as follows: U.S. International Total Net book value as of December 31, 2017 $ 429.2 $ 18.2 $ 447.4 Disposition (3.5 ) (5.8 ) (9.3 ) Foreign exchange and other adjustments — (0.6 ) (0.6 ) Net book value as of September 30, 2018 $ 425.7 $ 11.8 $ 437.5 |
Components of Other Intangible Assets | The components of other intangible assets at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 139.5 $ (110.2 ) $ 29.3 $ 140.6 $ (100.7 ) $ 39.9 Trade names 2.9 (2.9 ) — 2.9 (2.9 ) — Total other intangible assets $ 142.4 $ (113.1 ) $ 29.3 $ 143.5 $ (103.6 ) $ 39.9 |
Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets | The following table outlines the estimated annual amortization expense related to other intangible assets as of September 30, 2018: For the year ending December 31, Amount 2018 $ 13.7 2019 13.7 2020 12.2 2021 — 2022 — 2023 and thereafter — Total $ 39.6 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Realized and Unrealized Gains and Losses on Equity Investments Recognized in Investment and Other Income in Unaudited Condensed Consolidated Statements of Operations | The following table summarizes realized and unrealized gains and losses on equity investments recognized in investment and other income in the unaudited condensed consolidated statements of operations during the three and nine months ended September 30, 2018: Three months ended September 30, 2018 Nine months ended September 30, 2018 Net gain on equity securities $ 11.8 $ 11.8 Less: net gain recognized on equity securities sold (2.4 ) (2.4 ) Unrealized net gain recognized on equity securities still held at the reporting date $ 9.4 $ 9.4 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations | For the three months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Three Months Ended Employee Other Restructuring Total Restructuring September 30, 2018 Terminations Charges Charges Total U.S. $ 0.6 $ — $ 0.6 $ 0.6 International 0.1 — 0.1 0.1 Corporate 0.1 — 0.1 0.1 Total $ 0.8 $ — $ 0.8 $ 0.8 Three Months Ended Employee Other Restructuring Total Restructuring September 30, 2017 Terminations Charges Charges Total U.S. $ 0.2 $ (1.0 ) $ (0.8 ) $ (0.8 ) International 0.1 — 0.1 0.1 Corporate 0.1 — 0.1 0.1 Total $ 0.4 $ (1.0 ) $ (0.6 ) $ (0.6 ) For the nine months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2018 Terminations Charges Charges Charges Total U.S. $ 1.1 $ 0.7 $ 1.8 $ 0.1 $ 1.9 International 1.9 — 1.9 — 1.9 Corporate 0.3 — 0.3 — 0.3 Total $ 3.3 $ 0.7 $ 4.0 $ 0.1 $ 4.1 Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total U.S. $ 3.2 $ 0.9 $ 4.1 $ 0.2 $ 0.1 $ 4.4 International 1.3 — 1.3 — — 1.3 Corporate 0.7 — 0.7 — — 0.7 Total $ 5.2 $ 0.9 $ 6.1 $ 0.2 $ 0.1 $ 6.4 |
Schedule of Changes in the Restructuring Reserve | The restructuring reserve as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: December 31, Restructuring Cash September 30, 2017 Charges Reversals Paid 2018 Employee terminations $ 1.3 $ 3.5 $ (0.2 ) $ (3.3 ) $ 1.3 Lease terminations and other 2.1 0.7 — (1.3 ) 1.5 Total $ 3.4 $ 4.2 $ (0.2 ) $ (4.6 ) $ 2.8 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Estimated Net Pension Plan Income | The components of the estimated net pension plan income for Donnelley Financial’s pension plans for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Pension expense (income) Interest cost $ 2.6 $ 2.6 $ 7.7 $ 7.9 Expected return on assets (4.0 ) (4.0 ) (12.0 ) (12.0 ) Amortization, net 0.6 0.6 1.9 1.6 Net pension income $ (0.8 ) $ (0.8 ) $ (2.4 ) $ (2.5 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Income Tax Rates | The following table presents the provision for income taxes and the effective income tax rates for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 $ Change % Change (in millions, except percentages) Earnings before income taxes $ 67.7 $ 7.4 $ 60.3 814.9 % Income tax expense 19.7 2.1 17.6 838.1 % Effective income tax rate 29.1 % 28.4 % Nine Months Ended September 30, 2018 2017 $ Change % Change (in millions, except percentages) Earnings before income taxes $ 106.1 $ 55.4 $ 50.7 91.5 % Income tax expense 31.5 22.0 9.5 43.2 % Effective income tax rate 29.7 % 39.7 % |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of the Company's Equity Activity | The Company’s equity as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Total Equity Balance at December 31, 2017 $ 149.4 Net earnings 74.6 Other comprehensive income (0.9 ) Adoption of ASU 2014-09 0.9 Share-based compensation 7.2 Issuance of share-based awards, net of withholdings and other 0.5 Balance at September 30, 2018 $ 231.7 The Company’s equity as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: Total Equity Balance at December 31, 2016 $ 111.1 Net earnings 33.4 Other comprehensive income 5.6 Separation-related adjustments 0.2 Share-based compensation 5.2 Issuance of common stock 18.8 Issuance of share-based awards, net of withholdings and other (0.7 ) Balance at September 30, 2017 $ 173.6 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards | The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net earnings per share: Basic $ 1.42 $ 0.16 $ 2.21 $ 1.01 Diluted $ 1.40 $ 0.16 $ 2.19 $ 1.01 Numerator: Net earnings $ 48.0 $ 5.3 $ 74.6 $ 33.4 Denominator: Weighted average number of common shares outstanding 33.9 33.6 33.8 33.0 Dilutive awards 0.3 0.2 0.2 0.2 Diluted weighted average number of common shares outstanding 34.2 33.8 34.0 33.2 Weighted average number of anti-dilutive share-based awards: Restricted stock units — — 0.3 0.2 Stock options 0.6 0.4 0.6 0.3 Total 0.6 0.4 0.9 0.5 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive (Loss) Income and Income Tax Expense Allocated to Each Component | The components of other comprehensive (loss) income and income tax expense allocated to each component for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 0.4 $ — $ 0.4 $ (2.3 ) $ — $ (2.3 ) Adjustment for net periodic pension plan and other postretirement benefits plan cost 0.6 0.2 0.4 1.9 0.5 1.4 Other comprehensive income (loss) $ 1.0 $ 0.2 $ 0.8 $ (0.4 ) $ 0.5 $ (0.9 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 2.2 $ — $ 2.2 $ 4.6 $ — $ 4.6 Adjustment for net periodic pension plan and other postretirement benefits plan cost 0.6 0.3 0.3 1.6 0.6 1.0 Other comprehensive income $ 2.8 $ 0.3 $ 2.5 $ 6.2 $ 0.6 $ 5.6 |
Schedule of Changes in Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018 were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2017 $ (52.9 ) $ (11.7 ) $ (64.6 ) Other comprehensive income before reclassifications — (2.3 ) (2.3 ) Amounts reclassified from accumulated other comprehensive loss 1.4 — 1.4 Net change in accumulated other comprehensive loss 1.4 (2.3 ) (0.9 ) Balance at September 30, 2018 $ (51.5 ) $ (14.0 ) $ (65.5 ) Accumulated other comprehensive loss by component as of December 31, 2016 and September 30, 2017 were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2016 $ (52.2 ) $ (16.1 ) $ (68.3 ) Other comprehensive income before reclassifications — 4.6 4.6 Amounts reclassified from accumulated other comprehensive loss 1.0 — 1.0 Net change in accumulated other comprehensive loss 1.0 4.6 5.6 Balance at September 30, 2017 $ (51.2 ) $ (11.5 ) $ (62.7 ) |
Reclassifications from Accumulated Other Comprehensive Loss, Amortization of Pension Plan Cost | Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended Classification in the Condensed September 30, September 30, Consolidated 2018 2017 2018 2017 Statements of Operations Amortization of pension and other postretirement benefits plan cost: Net actuarial income $ 0.6 $ 0.6 $ 1.9 $ 1.6 (a) Reclassifications before tax 0.6 0.6 1.9 1.6 Income tax expense 0.2 0.3 0.5 0.6 Reclassifications, net of tax $ 0.4 $ 0.3 $ 1.4 $ 1.0 (a) This accumulated other comprehensive loss component is included in the calculation of net periodic pension and other postretirement benefits plan income recognized in investment and other income in the unaudited condensed consolidated statements of operations (see Note 9, Retirement Plans |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated financial statements. Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2018 U.S. $ 187.9 $ (2.4 ) $ 185.5 $ 48.4 $ 10.3 $ 7.2 International 31.9 (0.5 ) 31.4 27.0 1.2 — Total operating segments 219.8 (2.9 ) 216.9 75.4 11.5 7.2 Corporate — — — (13.3 ) 0.1 — Total operations $ 219.8 $ (2.9 ) $ 216.9 $ 62.1 $ 11.6 $ 7.2 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2017 U.S. $ 188.9 $ (2.8 ) $ 186.1 $ 22.4 $ 9.2 $ 7.7 International 37.1 (0.6 ) 36.5 1.5 1.4 0.1 Total operating segments 226.0 (3.4 ) 222.6 23.9 10.6 7.8 Corporate — — — (6.7 ) — 0.2 Total operations $ 226.0 $ (3.4 ) $ 222.6 $ 17.2 $ 10.6 $ 8.0 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Nine Months Ended September 30, 2018 U.S. $ 648.7 $ (7.6 ) $ 641.1 $ 121.7 $ 676.4 $ 28.7 $ 21.6 International 123.1 (1.5 ) 121.6 31.1 99.0 4.0 0.9 Total operating segments 771.8 (9.1 ) 762.7 152.8 775.4 32.7 22.5 Corporate — — — (35.1 ) 138.0 0.4 0.3 Total operations $ 771.8 $ (9.1 ) $ 762.7 $ 117.7 $ 913.4 $ 33.1 $ 22.8 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Nine Months Ended September 30, 2017 U.S. $ 665.8 $ (7.6 ) $ 658.2 $ 107.5 $ 715.3 $ 27.5 $ 18.1 International 124.8 (2.9 ) 121.9 7.6 96.0 4.2 0.8 Total operating segments 790.6 (10.5 ) 780.1 115.1 811.3 31.7 18.9 Corporate — — — (29.5 ) 122.4 — 1.1 Total operations $ 790.6 $ (10.5 ) $ 780.1 $ 85.6 $ 933.7 $ 31.7 $ 20.0 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of the Company's Debt | The Company’s debt as of September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 8.25% senior notes due October 15, 2024 $ 300.0 $ 300.0 Term Loan Credit Facility 106.3 168.6 Borrowings under the Revolving Facility — — Unamortized debt issuance costs (9.1 ) (10.3 ) Total debt 397.2 458.3 Less: current portion — — Long-term debt $ 397.2 $ 458.3 |
Guarantor Financial Informati_2
Guarantor Financial Information - (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 115.6 $ 24.9 $ (2.0 ) $ 138.5 Products net sales — 72.3 7.0 (0.9 ) 78.4 Total net sales — 187.9 31.9 (2.9 ) 216.9 Services cost of sales (exclusive of depreciation and amortization) — 60.4 16.9 (1.8 ) 75.5 Products cost of sales (exclusive of depreciation and amortization) — 54.3 4.6 (1.1 ) 57.8 Total cost of sales — 114.7 21.5 (2.9 ) 133.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 53.2 9.4 — 62.6 Restructuring, impairment and other charges-net — 0.7 0.1 — 0.8 Depreciation and amortization — 10.4 1.2 — 11.6 Other operating (income) expense — (26.6 ) (26.9 ) — (53.5 ) Income from operations — 35.5 26.6 — 62.1 Interest expense (income)-net 8.6 — (0.2 ) — 8.4 Intercompany interest (income) expense - net (6.1 ) 6.1 — — — Investment and other income-net — (12.6 ) (1.4 ) — (14.0 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (2.5 ) 42.0 28.2 — 67.7 Income tax (benefit) expense (0.8 ) 13.2 7.3 — 19.7 Earnings (loss) before equity in net income of subsidiaries (1.7 ) 28.8 20.9 — 48.0 Equity in net income of subsidiaries 49.7 20.9 — (70.6 ) — Net earnings $ 48.0 $ 49.7 $ 20.9 $ (70.6 ) $ 48.0 Comprehensive income (loss) $ 48.8 $ 50.5 $ 21.5 $ (72.0 ) $ 48.8 Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 397.7 $ 94.1 $ (5.9 ) $ 485.9 Products net sales — 251.0 29.0 (3.2 ) 276.8 Total net sales — 648.7 123.1 (9.1 ) 762.7 Services cost of sales (exclusive of depreciation and amortization) — 196.9 61.6 (5.1 ) 253.4 Products cost of sales (exclusive of depreciation and amortization) — 187.2 20.9 (4.0 ) 204.1 Total cost of sales — 384.1 82.5 (9.1 ) 457.5 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 172.9 30.9 — 203.8 Restructuring, impairment and other charges-net — 2.2 1.9 — 4.1 Depreciation and amortization — 29.1 4.0 — 33.1 Other operating (income) expense — (26.6 ) (26.9 ) — (53.5 ) Income from operations — 87.0 30.7 — 117.7 Interest expense (income)-net 27.9 (0.3 ) (0.4 ) — 27.2 Intercompany interest (income) expense - net (19.4 ) 19.4 — — — Investment and other income-net — (14.2 ) (1.4 ) — (15.6 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (8.5 ) 82.1 32.5 — 106.1 Income tax (benefit) expense (2.6 ) 25.5 8.6 — 31.5 Earnings (loss) before equity in net income of subsidiaries (5.9 ) 56.6 23.9 — 74.6 Equity in net income of subsidiaries 80.5 23.9 — (104.4 ) — Net earnings (loss) $ 74.6 $ 80.5 $ 23.9 $ (104.4 ) $ 74.6 Comprehensive income (loss) $ 73.7 $ 79.6 $ 21.7 $ (101.3 ) $ 73.7 Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 112.3 $ 30.1 $ (2.1 ) $ 140.3 Products net sales — 76.6 7.0 (1.3 ) 82.3 Total net sales — 188.9 37.1 (3.4 ) 222.6 Services cost of sales (exclusive of depreciation and amortization) — 63.6 20.1 (2.0 ) 81.7 Products cost of sales (exclusive of depreciation and amortization) — 56.0 4.3 (1.4 ) 58.9 Total cost of sales — 119.6 24.4 (3.4 ) 140.6 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 45.0 9.8 — 54.8 Restructuring, impairment and other charges-net — (0.7 ) 0.1 — (0.6 ) Depreciation and amortization — 9.2 1.4 — 10.6 Income from operations — 15.8 1.4 — 17.2 Interest expense-net 10.2 0.4 — — 10.6 Investment and other income-net — (0.8 ) — — (0.8 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (10.2 ) 16.2 1.4 — 7.4 Income tax (benefit) expense (5.1 ) 8.4 (1.2 ) — 2.1 Earnings (loss) before equity in net income of subsidiaries (5.1 ) 7.8 2.6 — 5.3 Equity in net income of subsidiaries 10.4 2.6 — (13.0 ) — Net earnings (loss) $ 5.3 $ 10.4 $ 2.6 $ (13.0 ) $ 5.3 Comprehensive income (loss) $ 7.8 $ 12.9 $ 4.8 $ (17.7 ) $ 7.8 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 386.7 $ 91.2 $ (6.5 ) $ 471.4 Products net sales — 279.1 33.6 (4.0 ) 308.7 Total net sales — 665.8 124.8 (10.5 ) 780.1 Services cost of sales (exclusive of depreciation and amortization) — 186.9 59.2 (5.9 ) 240.2 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 18.4 1.1 — 19.5 Products cost of sales (exclusive of depreciation and amortization) — 174.6 20.7 (4.6 ) 190.7 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 30.1 2.2 — 32.3 Total cost of sales — 410.0 83.2 (10.5 ) 482.7 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 145.1 28.6 — 173.7 Restructuring, impairment and other charges-net — 5.1 1.3 — 6.4 Depreciation and amortization — 27.5 4.2 — 31.7 Income from operations — 78.1 7.5 — 85.6 Interest expense-net 32.7 — — — 32.7 Investment and other income-net — (2.5 ) — — (2.5 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (32.7 ) 80.6 7.5 — 55.4 Income tax (benefit) expense (14.4 ) 35.0 1.4 — 22.0 Earnings (loss) before equity in net income of subsidiaries (18.3 ) 45.6 6.1 — 33.4 Equity in net income of subsidiaries 51.7 6.1 — (57.8 ) — Net earnings (loss) $ 33.4 $ 51.7 $ 6.1 $ (57.8 ) $ 33.4 Comprehensive income (loss) $ 39.0 $ 57.3 $ 10.7 $ (68.0 ) $ 39.0 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 20.5 $ 5.6 $ 30.1 $ — $ 56.2 Receivables, less allowances — 183.5 38.0 — 221.5 Intercompany receivables — 116.1 — (116.1 ) — Intercompany short-term note receivable-net — — 45.0 (45.0 ) — Inventories — 10.9 2.9 — 13.8 Prepaid expenses and other current assets — 14.1 2.3 — 16.4 Total current assets 20.5 330.2 118.3 (161.1 ) 307.9 Property, plant and equipment-net — 28.7 3.0 — 31.7 Goodwill — 425.7 11.8 — 437.5 Other intangible assets-net — 24.0 5.3 — 29.3 Software-net — 46.4 — — 46.4 Deferred income taxes — 34.6 2.8 (23.4 ) 14.0 Intercompany long-term note receivable 326.0 — — (326.0 ) — Other noncurrent assets 2.7 37.8 6.1 — 46.6 Investments in consolidated subsidiaries 456.2 109.0 — (565.2 ) — Total assets $ 805.4 $ 1,036.4 $ 147.3 $ (1,075.7 ) $ 913.4 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 53.1 $ 14.4 $ — $ 67.5 Intercompany payables 111.1 — 5.0 (116.1 ) — Intercompany short-term note payable-net 45.0 — — (45.0 ) — Accrued liabilities 18.1 103.3 15.9 — 137.3 Total current liabilities 174.2 156.4 35.3 (161.1 ) 204.8 Long-term debt 397.2 — — — 397.2 Intercompany long-term note payable — 326.0 — (326.0 ) — Deferred compensation liabilities — 21.7 — — 21.7 Pension and other postretirement benefits plan liabilities — 46.6 1.1 — 47.7 Other noncurrent liabilities 2.3 29.5 1.9 (23.4 ) 10.3 Total liabilities 573.7 580.2 38.3 (510.5 ) 681.7 Total equity 231.7 456.2 109.0 (565.2 ) 231.7 Total liabilities and equity $ 805.4 $ 1,036.4 $ 147.3 $ (1,075.7 ) $ 913.4 Condensed Consolidating Balance Sheet As of December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Receivables, less allowances — 131.3 33.9 — 165.2 Intercompany receivables — 146.4 — (146.4 ) — Intercompany short-term note receivable-net — — 30.0 (30.0 ) — Inventories — 21.3 2.0 — 23.3 Prepaid expenses and other current assets 37.1 14.8 2.8 (25.1 ) 29.6 Total current assets 45.4 341.7 84.5 (201.5 ) 270.1 Property, plant and equipment-net — 31.2 3.5 — 34.7 Goodwill — 429.2 18.2 — 447.4 Other intangible assets-net — 32.4 7.5 — 39.9 Software-net — 40.6 0.5 — 41.1 Deferred income taxes — 40.5 3.4 (21.7 ) 22.2 Other noncurrent assets 3.4 30.0 4.7 — 38.1 Investments in consolidated subsidiaries 728.4 85.2 — (813.6 ) — Total assets $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 57.9 $ 9.9 $ — $ 67.8 Intercompany payable 139.5 — 6.9 (146.4 ) — Intercompany short-term note payable-net 30.0 — — (30.0 ) — Accrued liabilities — 127.6 16.7 (25.1 ) 119.2 Total current liabilities 169.5 185.5 33.5 (201.5 ) 187.0 Long-term debt 458.3 — — — 458.3 Deferred compensation liabilities — 22.8 — — 22.8 Pension and other postretirement benefits plan — 51.3 1.2 — 52.5 Other noncurrent liabilities — 42.8 2.4 (21.7 ) 23.5 Total liabilities 627.8 302.4 37.1 (223.2 ) 744.1 Total equity 149.4 728.4 85.2 (813.6 ) 149.4 Total liabilities and equity $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 |
Guarantor Financial Information Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 59.3 $ (38.0 ) $ (10.9 ) $ 10.4 INVESTING ACTIVITIES Capital expenditures — (21.9 ) (0.9 ) — (22.8 ) Sale of investment — 3.1 — — 3.1 Proceeds from disposition — 34.5 42.6 — 77.1 Intercompany note receivable, net — — (15.0 ) 15.0 — Net cash provided by (used in) investing activities — 15.7 26.7 15.0 57.4 FINANCING ACTIVITIES Revolving facility borrowings 255.0 — — — 255.0 Payments on revolving facility borrowings (255.0 ) — — — (255.0 ) Payments on long-term debt (62.5 ) — — — (62.5 ) Intercompany note payable, net 15.0 — — (15.0 ) — Proceeds from the issuance of common stock 1.2 — — — 1.2 Treasury stock repurchases (0.8 ) — — — (0.8 ) Net cash used in financing activities (47.1 ) — — (15.0 ) (62.1 ) Effect of exchange rate on cash and cash equivalents — — (1.5 ) — (1.5 ) Net increase (decrease) in cash and cash equivalents 12.2 (22.3 ) 14.3 — 4.2 Cash and cash equivalents at beginning of year 8.3 27.9 15.8 — 52.0 Cash and cash equivalents at end of period $ 20.5 $ 5.6 $ 30.1 $ — $ 56.2 Supplemental non-cash disclosure: Intercompany debt allocation $ (326.0 ) $ 326.0 $ — $ — $ — Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (4.3 ) $ 21.8 $ 13.8 $ 2.4 $ 33.7 INVESTING ACTIVITIES Capital expenditures — (19.2 ) (0.8 ) — (20.0 ) Purchase of investment — (3.4 ) — — (3.4 ) Intercompany note receivable — — (19.7 ) 19.7 — Other investing activities — 0.3 — — 0.3 Net cash provided by (used in) investing activities — (22.3 ) (20.5 ) 19.7 (23.1 ) FINANCING ACTIVITIES Revolving facility borrowings 230.0 — — — 230.0 Payments on revolving facility borrowings (230.0 ) — — — (230.0 ) Payments on long-term debt (100.0 ) — — — (100.0 ) Debt issuance costs (1.5 ) — — — (1.5 ) Separation-related payment from R.R. Donnelley 68.0 — — — 68.0 Proceeds from the issuance of common stock 18.8 — — — 18.8 Treasury stock repurchases (0.9 ) — — — (0.9 ) Intercompany note payable 19.7 — — (19.7 ) — Other financing activities 0.4 — — — 0.4 Net cash provided by (used in) financing activities 4.5 — — (19.7 ) (15.2 ) Effect of exchange rate on cash and cash equivalents — — 0.6 — 0.6 Net increase (decrease) in cash and cash equivalents 0.2 (0.5 ) (6.1 ) 2.4 (4.0 ) Cash and cash equivalents at beginning of year — 21.8 16.8 (2.4 ) 36.2 Cash and cash equivalents at end of period $ 0.2 $ 21.3 $ 10.7 $ — $ 32.2 |
Overview and Basis of Present_3
Overview and Basis of Presentation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | Aug. 04, 2017 | Jun. 21, 2017 | Mar. 28, 2017 | Oct. 01, 2016 | Sep. 30, 2018 | Sep. 30, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Distribution of common shares during spinoff | 26.2 | |||||
Percentage of distribution of common shares during spinoff | 80.75% | |||||
Description of distribution of common shares during spinoff | Holders of RRD common stock received one share of Donnelley Financial common stock for every eight shares of RRD common stock held on September 23, 2016. | |||||
Proceeds from the issuance of common stock | $ 1.2 | $ 18.8 | ||||
R.R. Donnelley & Sons Company | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of common stock retained | 0.1 | 6.2 | ||||
Ownership percentage | 19.25% | |||||
Underwritten Public Offering | R.R. Donnelley & Sons Company | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of common stock sold | 0.1 | 6.1 | 6.2 | |||
Proceeds from the issuance of common stock | $ 18.8 | |||||
Underwritten Public Offering | R.R. Donnelley & Sons Company | Common Stock | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued upon exercise of underwriters options | 0.9 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||
Period due on customer payment upon invoicing | 10 days | |
Contract assets | $ 6.1 | $ 9 |
Invoiced to customers amount that exceeded estimates of standalone selling price | $ 0.7 |
Revenue - Cumulative Effect of
Revenue - Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of ASU (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 221.5 | $ 165.2 | ||
Inventories | 13.8 | 23.3 | ||
Deferred income taxes | 14 | 22.2 | ||
Total assets | 913.4 | 893.5 | $ 933.7 | |
LIABILITIES | ||||
Accrued liabilities | 137.3 | 119.2 | ||
EQUITY | ||||
Retained earnings | 84.4 | 8.9 | ||
Total liabilities and equity | 913.4 | $ 893.5 | ||
ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 174.1 | |||
Inventories | 12.7 | |||
Deferred income taxes | 21.7 | |||
Total assets | 891.3 | |||
LIABILITIES | ||||
Accrued liabilities | 116.1 | |||
EQUITY | ||||
Retained earnings | 9.8 | |||
Total liabilities and equity | 891.3 | |||
Adoption of ASU 2014-09 | ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 5.8 | 8.9 | ||
Inventories | (10) | (10.6) | ||
Deferred income taxes | (0.5) | (0.5) | ||
Total assets | (4.7) | (2.2) | ||
LIABILITIES | ||||
Accrued liabilities | (5.4) | (3.1) | ||
EQUITY | ||||
Retained earnings | 0.7 | 0.9 | ||
Total liabilities and equity | $ (4.7) | $ (2.2) |
Revenue - Impact of Adoption of
Revenue - Impact of Adoption of ASU on Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total net sales | $ 216.9 | $ 222.6 | $ 762.7 | $ 780.1 |
Services cost of sales (exclusive of depreciation and amortization) | 75.5 | 81.7 | 253.4 | 240.2 |
Products cost of sales (exclusive of depreciation and amortization) | 57.8 | 58.9 | 204.1 | 190.7 |
Total cost of sales | 133.3 | 140.6 | 457.5 | 482.7 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 62.6 | 203.8 | ||
Income tax expense (benefit) | 19.7 | 2.1 | 31.5 | 22 |
Net earnings | $ 48 | $ 5.3 | $ 74.6 | $ 33.4 |
Net earnings per share (Note 12): | ||||
Basic net earnings per share | $ 1.42 | $ 0.16 | $ 2.21 | $ 1.01 |
Diluted net earnings per share | $ 1.40 | $ 0.16 | $ 2.19 | $ 1.01 |
Previous Revenue Standard | ASU 2014-09 | ||||
Total net sales | $ 219.4 | $ 763.5 | ||
Services cost of sales (exclusive of depreciation and amortization) | 75.5 | 253 | ||
Products cost of sales (exclusive of depreciation and amortization) | 60 | 205 | ||
Total cost of sales | 135.5 | 458 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 62.6 | 203.8 | ||
Income tax expense (benefit) | 19.8 | 31.6 | ||
Net earnings | $ 48.2 | $ 74.8 | ||
Net earnings per share (Note 12): | ||||
Basic net earnings per share | $ 1.43 | $ 2.22 | ||
Diluted net earnings per share | $ 1.41 | $ 2.20 | ||
Adoption of ASU 2014-09 | ||||
Total net sales | $ (2.5) | $ (0.8) | ||
Services cost of sales (exclusive of depreciation and amortization) | 0.4 | |||
Products cost of sales (exclusive of depreciation and amortization) | (2.2) | (0.9) | ||
Total cost of sales | (2.2) | (0.5) | ||
Income tax expense (benefit) | (0.1) | (0.1) | ||
Net earnings | $ (0.2) | $ (0.2) | ||
Net earnings per share (Note 12): | ||||
Basic net earnings per share | $ (0.01) | $ (0.01) | ||
Diluted net earnings per share | $ (0.01) | $ (0.01) | ||
Services Net Sales | ||||
Total net sales | $ 138.5 | $ 140.3 | $ 485.9 | $ 471.4 |
Services Net Sales | Previous Revenue Standard | ASU 2014-09 | ||||
Total net sales | 139.1 | 484.9 | ||
Services Net Sales | Adoption of ASU 2014-09 | ||||
Total net sales | (0.6) | 1 | ||
Products Net Sales | ||||
Total net sales | 78.4 | $ 82.3 | 276.8 | $ 308.7 |
Products Net Sales | Previous Revenue Standard | ASU 2014-09 | ||||
Total net sales | 80.3 | 278.6 | ||
Products Net Sales | Adoption of ASU 2014-09 | ||||
Total net sales | $ (1.9) | $ (1.8) |
Revenue - Impact of Adoption _2
Revenue - Impact of Adoption of ASU on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 221.5 | $ 165.2 | ||
Inventories | 13.8 | 23.3 | ||
Deferred income taxes | 14 | 22.2 | ||
Total assets | 913.4 | 893.5 | $ 933.7 | |
LIABILITIES | ||||
Accrued liabilities | 137.3 | 119.2 | ||
EQUITY | ||||
Retained earnings | 84.4 | 8.9 | ||
Total liabilities and equity | 913.4 | $ 893.5 | ||
ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 174.1 | |||
Inventories | 12.7 | |||
Deferred income taxes | 21.7 | |||
Total assets | 891.3 | |||
LIABILITIES | ||||
Accrued liabilities | 116.1 | |||
EQUITY | ||||
Retained earnings | 9.8 | |||
Total liabilities and equity | 891.3 | |||
Previous Revenue Standard | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 215.7 | |||
Inventories | 23.8 | |||
Deferred income taxes | 14.5 | |||
Total assets | 918.1 | |||
LIABILITIES | ||||
Accrued liabilities | 142.7 | |||
EQUITY | ||||
Retained earnings | 83.7 | |||
Total liabilities and equity | 918.1 | |||
Adoption of ASU 2014-09 | ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 5.8 | 8.9 | ||
Inventories | (10) | (10.6) | ||
Deferred income taxes | (0.5) | (0.5) | ||
Total assets | (4.7) | (2.2) | ||
LIABILITIES | ||||
Accrued liabilities | (5.4) | (3.1) | ||
EQUITY | ||||
Retained earnings | 0.7 | 0.9 | ||
Total liabilities and equity | $ (4.7) | $ (2.2) |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Reporting Unit and Timing of Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Total net sales | $ 216.9 | $ 762.7 |
U.S. | ||
Total net sales | 185.5 | 641.1 |
International | ||
Total net sales | 31.4 | 121.6 |
Capital Markets | U.S. | ||
Total net sales | 102.5 | 364.6 |
Investment Markets | U.S. | ||
Total net sales | 81.8 | 262.8 |
Language Solutions | U.S. | ||
Total net sales | 1.2 | 13.7 |
Point in time | ||
Total net sales | 176.1 | 637.9 |
Point in time | U.S. | ||
Total net sales | 149.4 | 530 |
Point in time | International | ||
Total net sales | 26.7 | 107.9 |
Point in time | Capital Markets | U.S. | ||
Total net sales | 78.1 | 292.1 |
Point in time | Investment Markets | U.S. | ||
Total net sales | 70.1 | 224.2 |
Point in time | Language Solutions | U.S. | ||
Total net sales | 1.2 | 13.7 |
Over time | ||
Total net sales | 40.8 | 124.8 |
Over time | U.S. | ||
Total net sales | 36.1 | 111.1 |
Over time | International | ||
Total net sales | 4.7 | 13.7 |
Over time | Capital Markets | U.S. | ||
Total net sales | 24.4 | 72.5 |
Over time | Investment Markets | U.S. | ||
Total net sales | $ 11.7 | $ 38.6 |
Revenue - Changes in Contract L
Revenue - Changes in Contract Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Statement Of Financial Position [Abstract] | |
Balance beginning | $ 14.2 |
Deferral of revenue | 35.4 |
Revenue recognized | (35.9) |
Disposition | (1.6) |
Balance ending | $ 12.1 |
Disposition - Additional Inform
Disposition - Additional Information (Details) - USD ($) $ in Millions | Jul. 22, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition | $ 77.1 | $ 0 | ||
Gain on sale of business | 53.5 | $ 0 | ||
Discontinued Operations, Disposed of by Sale | Language Solutions | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition | $ 77.5 | |||
Discontinued Operations, Disposed of by Sale | Language Solutions | Other Operating Income | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Gain on sale of business | $ 53.5 | $ 53.5 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 3.2 | $ 3.3 |
Work in process | 10.6 | 13.7 |
Finished goods | 0 | 6.3 |
Total | $ 13.8 | $ 23.3 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Company's Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 151.6 | $ 150.1 |
Less: Accumulated depreciation | (119.9) | (115.4) |
Total | 31.7 | 34.7 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 10 | 10 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 36.3 | 36.1 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 105.3 | $ 104 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 1.6 | $ 1.9 | $ 5.4 | $ 5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill net book value, beginning balance | $ 447.4 |
Disposition | (9.3) |
Foreign exchange and other adjustments | (0.6) |
Goodwill net book value, ending balance | 437.5 |
U.S. | |
Goodwill [Line Items] | |
Goodwill net book value, beginning balance | 429.2 |
Disposition | (3.5) |
Foreign exchange and other adjustments | 0 |
Goodwill net book value, ending balance | 425.7 |
International | |
Goodwill [Line Items] | |
Goodwill net book value, beginning balance | 18.2 |
Disposition | (5.8) |
Foreign exchange and other adjustments | (0.6) |
Goodwill net book value, ending balance | $ 11.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 142.4 | $ 143.5 |
Accumulated Amortization | (113.1) | (103.6) |
Net Book Value | 29.3 | 39.9 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 139.5 | 140.6 |
Accumulated Amortization | (110.2) | (100.7) |
Net Book Value | 29.3 | 39.9 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2.9 | 2.9 |
Accumulated Amortization | (2.9) | (2.9) |
Net Book Value | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for other intangible assets | $ 3.4 | $ 3.6 | $ 10.3 | $ 10.7 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 13.7 |
2,019 | 13.7 |
2,020 | 12.2 |
2,021 | 0 |
2,022 | 0 |
2023 and thereafter | 0 |
Total | $ 39.6 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Equity investments carrying value | $ 23.6 | $ 14.9 |
Investments - Summary of Realiz
Investments - Summary of Realized and Unrealized Gains and Losses on Equity Investments Recognized in Investment and Other Income in Unaudited Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Equity Securities Fv Ni Gain Loss Alternative [Abstract] | ||
Net gain on equity securities | $ 11.8 | $ 11.8 |
Less: net gain recognized on equity securities sold | (2.4) | (2.4) |
Unrealized net gain recognized on equity securities still held at the reporting date | $ 9.4 | $ 9.4 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges - Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | $ 0.8 | $ 0.4 | $ 3.3 | $ 5.2 |
Other Restructuring Charges | 0 | (1) | 0.7 | 0.9 |
Total Restructuring Charges | 0.8 | (0.6) | 4 | 6.1 |
Other Charges | 0.1 | 0.1 | ||
Impairment | 0 | 0.2 | ||
Total | 0.8 | (0.6) | 4.1 | 6.4 |
U.S. | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0.6 | 0.2 | 1.1 | 3.2 |
Other Restructuring Charges | 0 | (1) | 0.7 | 0.9 |
Total Restructuring Charges | 0.6 | (0.8) | 1.8 | 4.1 |
Other Charges | 0.1 | 0.1 | ||
Impairment | 0.2 | |||
Total | 0.6 | (0.8) | 1.9 | 4.4 |
International | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0.1 | 0.1 | 1.9 | 1.3 |
Other Restructuring Charges | 0 | 0 | 0 | 0 |
Total Restructuring Charges | 0.1 | 0.1 | 1.9 | 1.3 |
Other Charges | 0 | 0 | ||
Impairment | 0 | |||
Total | 0.1 | 0.1 | 1.9 | 1.3 |
Corporate | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0.1 | 0.1 | 0.3 | 0.7 |
Other Restructuring Charges | 0 | 0 | 0 | 0 |
Total Restructuring Charges | 0.1 | 0.1 | 0.3 | 0.7 |
Other Charges | 0 | 0 | ||
Impairment | 0 | |||
Total | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.7 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Charges - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Employee | Sep. 30, 2017USD ($)Employee | Sep. 30, 2018USD ($)Employee | Sep. 30, 2017USD ($)Employee | |
Restructuring And Related Activities [Abstract] | ||||
Employee termination costs | $ 0.8 | $ 0.4 | $ 3.3 | $ 5.2 |
Number of employees used to determine employee termination costs | Employee | 76 | 169 | 76 | 169 |
Other restructuring charges | $ 0 | $ (1) | $ 0.7 | $ 0.9 |
Net reversal of other restructuring charges | $ 1 | (0.2) | ||
Impairment charges | 0 | 0.2 | ||
Other charges | $ 0.1 | $ 0.1 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | $ 3.4 | |
Restructuring Charges | 4.2 | |
Reversals | $ 1 | (0.2) |
Cash Paid | (4.6) | |
Balance at the end | 2.8 | |
Employee terminations | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 1.3 | |
Restructuring Charges | 3.5 | |
Reversals | (0.2) | |
Cash Paid | (3.3) | |
Balance at the end | 1.3 | |
Lease terminations and other | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 2.1 | |
Restructuring Charges | 0.7 | |
Reversals | 0 | |
Cash Paid | (1.3) | |
Balance at the end | $ 1.5 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other Charges - Restructuring Reserve - Additional Information (Details) $ in Millions | Sep. 30, 2018USD ($) |
Accrued Liabilities | |
Restructuring Cost And Reserve [Line Items] | |
Current restructuring reserve (included in accrued liabilities) | $ 2.3 |
Contract Termination | Other Noncurrent Liabilities | |
Restructuring Cost And Reserve [Line Items] | |
Noncurrent restructuring reserve (included in other noncurrent liabilities) | $ 0.5 |
Retirement Plans - Components o
Retirement Plans - Components of Estimated Net Pension Plan Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension expense (income) | ||||
Net pension income | $ (2.4) | $ (2.5) | ||
Pension Plan | ||||
Pension expense (income) | ||||
Interest cost | $ 2.6 | $ 2.6 | 7.7 | 7.9 |
Expected return on assets | (4) | (4) | (12) | (12) |
Amortization, net | 0.6 | 0.6 | 1.9 | 1.6 |
Net pension income | $ (0.8) | $ (0.8) | $ (2.4) | $ (2.5) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes and Effective Income Tax Rates (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Earnings before income taxes | $ 67.7 | $ 7.4 | $ 106.1 | $ 55.4 |
Income tax expense | $ 19.7 | $ 2.1 | $ 31.5 | $ 22 |
Effective income tax rate | 29.10% | 28.40% | 29.70% | 39.70% |
Earnings before income taxes, $ Change | $ 60.3 | $ 50.7 | ||
Income tax expense, $ Change | $ 17.6 | $ 9.5 | ||
Earnings before income taxes, % Change | 814.90% | 91.50% | ||
Income tax expense, % Change | 838.10% | 43.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Cash payments (net of refunds) for income taxes | $ 1.5 | $ 8.9 | $ 7.6 | $ 21.8 | ||
Effective income tax rate | 29.10% | 28.40% | 29.70% | 39.70% | ||
Income tax rate | 21.00% | 35.00% | ||||
Measurement period adjustment, decrease in income tax liability | $ 0.4 | |||||
One-time transition tax on foreign subsidiaries' untaxed accumulated earnings, income tax benefit | $ 0.4 |
Equity - Schedule of the Compan
Equity - Schedule of the Company's Equity Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Balance | $ 149.4 | $ 111.1 | ||
Net earnings | $ 48 | $ 5.3 | 74.6 | 33.4 |
Other comprehensive income | 0.8 | 2.5 | (0.9) | 5.6 |
Separation-related adjustments | 0.2 | |||
Adoption of ASU 2014-09 | 0.9 | |||
Share-based compensation | 7.2 | 5.2 | ||
Issuance of common stock | 18.8 | |||
Issuance of share-based awards, net of withholdings and other | 0.5 | (0.7) | ||
Balance | $ 231.7 | $ 173.6 | $ 231.7 | $ 173.6 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Basic | $ 1.42 | $ 0.16 | $ 2.21 | $ 1.01 |
Diluted | $ 1.40 | $ 0.16 | $ 2.19 | $ 1.01 |
Net earnings | $ 48 | $ 5.3 | $ 74.6 | $ 33.4 |
Weighted average number of common shares outstanding | 33.9 | 33.6 | 33.8 | 33 |
Dilutive awards | 0.3 | 0.2 | 0.2 | 0.2 |
Diluted weighted average number of common shares outstanding | 34.2 | 33.8 | 34 | 33.2 |
Total weighted average number of anti-dilutive share-based awards | 0.6 | 0.4 | 0.9 | 0.5 |
Restricted stock units | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Total weighted average number of anti-dilutive share-based awards | 0 | 0 | 0.3 | 0.2 |
Stock options | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Total weighted average number of anti-dilutive share-based awards | 0.6 | 0.4 | 0.6 | 0.3 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Components of Other Comprehensive (Loss) Income and Income Tax Expense Allocated to Each Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income (loss), Before Tax Amount | $ 1 | $ 2.8 | $ (0.4) | $ 6.2 |
Other comprehensive income (loss), Income Tax Expense | 0.2 | 0.3 | 0.5 | 0.6 |
Other comprehensive income (loss), net of tax | 0.8 | 2.5 | (0.9) | 5.6 |
Translation adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income (loss), Before Tax Amount | 0.4 | 2.2 | (2.3) | 4.6 |
Other comprehensive income (loss), Income Tax Expense | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0.4 | 2.2 | (2.3) | 4.6 |
Adjustment for Net Periodic Pension Plan and Other Postretirement Benefits Plan Cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income (loss), Before Tax Amount | 0.6 | 0.6 | 1.9 | 1.6 |
Other comprehensive income (loss), Income Tax Expense | 0.2 | 0.3 | 0.5 | 0.6 |
Other comprehensive income (loss), net of tax | $ 0.4 | $ 0.3 | $ 1.4 | $ 1 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | $ 149.4 | $ 111.1 |
Balance | 231.7 | 173.6 |
Pension and Other Postretirement Benefits Plan Cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (52.9) | (52.2) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 1.4 | 1 |
Net change in accumulated other comprehensive loss | 1.4 | 1 |
Balance | (51.5) | (51.2) |
Translation adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (11.7) | (16.1) |
Other comprehensive income before reclassifications | (2.3) | 4.6 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net change in accumulated other comprehensive loss | (2.3) | 4.6 |
Balance | (14) | (11.5) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (64.6) | (68.3) |
Other comprehensive income before reclassifications | (2.3) | 4.6 |
Amounts reclassified from accumulated other comprehensive loss | 1.4 | 1 |
Net change in accumulated other comprehensive loss | (0.9) | 5.6 |
Balance | $ (65.5) | $ (62.7) |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Loss Amortization of Pension Plan Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accumulated Defined Benefit Plans Adjustment, Net Actuarial Income (loss) | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of pension and other postretirement benefits plan cost: Reclassifications before tax | [1] | $ 0.6 | $ 0.6 | $ 1.9 | $ 1.6 |
Pension and Other Postretirement Benefits Plan Cost | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of pension and other postretirement benefits plan cost: Reclassifications before tax | 0.6 | 0.6 | 1.9 | 1.6 | |
Income tax expense | 0.2 | 0.3 | 0.5 | 0.6 | |
Reclassifications, net of tax | $ 0.4 | $ 0.3 | $ 1.4 | $ 1 | |
[1] | This accumulated other comprehensive loss component is included in the calculation of net periodic pension and other postretirement benefits plan income recognized in investment and other income in the unaudited condensed consolidated statements of operations (see Note 9, Retirement Plans |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 216.9 | $ 222.6 | $ 762.7 | $ 780.1 | |
Assets of Operations | 913.4 | 933.7 | 913.4 | 933.7 | $ 893.5 |
Income (Loss) from Operations | 62.1 | 17.2 | 117.7 | 85.6 | |
Depreciation and amortization | 11.6 | 10.6 | 33.1 | 31.7 | |
Capital Expenditures | 7.2 | 8 | 22.8 | 20 | |
Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 219.8 | 226 | 771.8 | 790.6 | |
Assets of Operations | 775.4 | 811.3 | 775.4 | 811.3 | |
Income (Loss) from Operations | 75.4 | 23.9 | 152.8 | 115.1 | |
Depreciation and amortization | 11.5 | 10.6 | 32.7 | 31.7 | |
Capital Expenditures | 7.2 | 7.8 | 22.5 | 18.9 | |
Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | (2.9) | (3.4) | (9.1) | (10.5) | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Assets of Operations | 138 | 122.4 | 138 | 122.4 | |
Income (Loss) from Operations | (13.3) | (6.7) | (35.1) | (29.5) | |
Depreciation and amortization | 0.1 | 0 | 0.4 | 0 | |
Capital Expenditures | 0 | 0.2 | 0.3 | 1.1 | |
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 185.5 | 186.1 | 641.1 | 658.2 | |
U.S. | Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 187.9 | 188.9 | 648.7 | 665.8 | |
Assets of Operations | 676.4 | 715.3 | 676.4 | 715.3 | |
Income (Loss) from Operations | 48.4 | 22.4 | 121.7 | 107.5 | |
Depreciation and amortization | 10.3 | 9.2 | 28.7 | 27.5 | |
Capital Expenditures | 7.2 | 7.7 | 21.6 | 18.1 | |
U.S. | Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | (2.4) | (2.8) | (7.6) | (7.6) | |
International | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 31.4 | 36.5 | 121.6 | 121.9 | |
International | Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 31.9 | 37.1 | 123.1 | 124.8 | |
Assets of Operations | 99 | 96 | 99 | 96 | |
Income (Loss) from Operations | 27 | 1.5 | 31.1 | 7.6 | |
Depreciation and amortization | 1.2 | 1.4 | 4 | 4.2 | |
Capital Expenditures | 0 | 0.1 | 0.9 | 0.8 | |
International | Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ (0.5) | $ (0.6) | $ (1.5) | $ (2.9) |
Debt - Schedule of the Company'
Debt - Schedule of the Company's Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (9.1) | $ (10.3) |
Total debt | 397.2 | 458.3 |
Less: current portion | 0 | 0 |
Long-term debt | 397.2 | 458.3 |
8.25% Senior Notes Due October 15, 2024 | ||
Debt Instrument [Line Items] | ||
Senior Unsecured notes | 300 | 300 |
Senior Secured Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | 106.3 | 168.6 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 0 | $ 0 |
Debt - Schedule of the Compan_2
Debt - Schedule of the Company's Debt (Parenthetical) (Details) - 8.25% Senior Notes Due October 15, 2024 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 8.25% | 8.25% |
Maturity date | Oct. 15, 2024 | Oct. 15, 2024 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Interest paid | $ 19,900,000 | $ 24,200,000 | |
Senior Secured Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Credit facility | 350,000,000 | ||
Borrowings | 106,300,000 | $ 168,600,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility | 300,000,000 | ||
Borrowings | $ 0 | 0 | |
Weighted average interest rate on borrowings | 5.10% | 4.40% | |
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Allowable annual dividend payment under credit agreement | $ 15,000,000 | ||
8.25% Senior Notes Due October 15, 2024 | |||
Debt Instrument [Line Items] | |||
Fair value of senior notes | $ 316,400,000 | $ 321,500,000 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - shares shares in Millions | Aug. 04, 2017 | Jun. 21, 2017 | Mar. 28, 2017 | Sep. 30, 2018 |
Transition Services Agreements | ||||
Related Party Transaction [Line Items] | ||||
Intercompany agreements, description | In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. | |||
Term of agreement | 36 months | |||
Commercial and Other Arrangements | ||||
Related Party Transaction [Line Items] | ||||
Intercompany agreements, description | The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. | |||
Term of agreement | 36 months | |||
R.R. Donnelley & Sons Company | Underwritten Public Offering | ||||
Related Party Transaction [Line Items] | ||||
Number of common stock sold | 0.1 | 6.1 | 6.2 | |
Sale of common stock transaction date | Aug. 4, 2017 |
Guarantor Financial Informati_3
Guarantor Financial Information - Additional Information (Details) | Sep. 30, 2018 |
Guarantor Subsidiaries | |
Condensed Income Statements Captions [Line Items] | |
Percentage of ownership in directly owned subsidiaries | 100.00% |
Guarantor Financial Informati_4
Guarantor Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | $ 216.9 | $ 222.6 | $ 762.7 | $ 780.1 | ||
Services cost of sales (exclusive of depreciation and amortization) | 75.5 | 81.7 | 253.4 | 240.2 | ||
Products cost of sales (exclusive of depreciation and amortization) | 57.8 | 58.9 | 204.1 | 190.7 | ||
Total cost of sales | 133.3 | 140.6 | 457.5 | 482.7 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 62.6 | 54.8 | 203.8 | 173.7 | ||
Restructuring, impairment and other charges-net | 0.8 | (0.6) | 4.1 | 6.4 | ||
Depreciation and amortization | 11.6 | 10.6 | 33.1 | 31.7 | ||
Other operating (income) expense | (53.5) | (53.5) | ||||
Income from operations | 62.1 | 17.2 | 117.7 | 85.6 | ||
Interest expense (income)-net | 8.4 | 10.6 | 27.2 | 32.7 | ||
Intercompany interest (income) expense - net | 0 | 0 | ||||
Investment and other income-net | (14) | (0.8) | (15.6) | (2.5) | ||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 67.7 | 7.4 | 106.1 | 55.4 | ||
Income tax expense (benefit) | 19.7 | 2.1 | 31.5 | 22 | ||
Earnings (loss) before equity in net income of subsidiaries | 48 | 5.3 | 74.6 | 33.4 | ||
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ||
Net earnings | 48 | 5.3 | 74.6 | 33.4 | ||
Comprehensive income (loss) | 48.8 | 7.8 | 73.7 | 39 | ||
R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 0 | 0 | 19.5 | [2] |
Products cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 0 | 0 | 32.3 | [2] |
Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (2.9) | (3.4) | (9.1) | (10.5) | ||
Services cost of sales (exclusive of depreciation and amortization) | (1.8) | (2) | (5.1) | (5.9) | ||
Products cost of sales (exclusive of depreciation and amortization) | (1.1) | (1.4) | (4) | (4.6) | ||
Total cost of sales | (2.9) | (3.4) | (9.1) | (10.5) | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | ||
Restructuring, impairment and other charges-net | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Other operating (income) expense | 0 | 0 | ||||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense (income)-net | 0 | 0 | 0 | 0 | ||
Intercompany interest (income) expense - net | 0 | 0 | ||||
Investment and other income-net | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Earnings (loss) before equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ||
Equity in net income of subsidiaries | (70.6) | (13) | (104.4) | (57.8) | ||
Net earnings | (70.6) | (13) | (104.4) | (57.8) | ||
Comprehensive income (loss) | (72) | (17.7) | (101.3) | (68) | ||
Eliminations | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [2] | 0 | ||||
Products cost of sales (exclusive of depreciation and amortization) | [2] | 0 | ||||
Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 138.5 | 140.3 | 485.9 | 471.4 | ||
Services Net Sales | Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (2) | (2.1) | (5.9) | (6.5) | ||
Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 78.4 | 82.3 | 276.8 | 308.7 | ||
Products Net Sales | Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (0.9) | (1.3) | (3.2) | (4) | ||
Parent | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | 0 | ||
Services cost of sales (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | ||
Products cost of sales (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | ||
Total cost of sales | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | ||
Restructuring, impairment and other charges-net | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Other operating (income) expense | 0 | 0 | ||||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense (income)-net | 8.6 | 10.2 | 27.9 | 32.7 | ||
Intercompany interest (income) expense - net | (6.1) | (19.4) | ||||
Investment and other income-net | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes and equity in net income of subsidiaries | (2.5) | (10.2) | (8.5) | (32.7) | ||
Income tax expense (benefit) | (0.8) | (5.1) | (2.6) | (14.4) | ||
Earnings (loss) before equity in net income of subsidiaries | (1.7) | (5.1) | (5.9) | (18.3) | ||
Equity in net income of subsidiaries | 49.7 | 10.4 | 80.5 | 51.7 | ||
Net earnings | 48 | 5.3 | 74.6 | 33.4 | ||
Comprehensive income (loss) | 48.8 | 7.8 | 73.7 | 39 | ||
Parent | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [2] | 0 | ||||
Products cost of sales (exclusive of depreciation and amortization) | [2] | 0 | ||||
Parent | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | 0 | ||
Parent | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | 0 | ||
Guarantor Subsidiaries | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 187.9 | 188.9 | 648.7 | 665.8 | ||
Services cost of sales (exclusive of depreciation and amortization) | 60.4 | 63.6 | 196.9 | 186.9 | ||
Products cost of sales (exclusive of depreciation and amortization) | 54.3 | 56 | 187.2 | 174.6 | ||
Total cost of sales | 114.7 | 119.6 | 384.1 | 410 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 53.2 | 45 | 172.9 | 145.1 | ||
Restructuring, impairment and other charges-net | 0.7 | (0.7) | 2.2 | 5.1 | ||
Depreciation and amortization | 10.4 | 9.2 | 29.1 | 27.5 | ||
Other operating (income) expense | (26.6) | (26.6) | ||||
Income from operations | 35.5 | 15.8 | 87 | 78.1 | ||
Interest expense (income)-net | 0 | 0.4 | (0.3) | 0 | ||
Intercompany interest (income) expense - net | 6.1 | 19.4 | ||||
Investment and other income-net | (12.6) | (0.8) | (14.2) | (2.5) | ||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 42 | 16.2 | 82.1 | 80.6 | ||
Income tax expense (benefit) | 13.2 | 8.4 | 25.5 | 35 | ||
Earnings (loss) before equity in net income of subsidiaries | 28.8 | 7.8 | 56.6 | 45.6 | ||
Equity in net income of subsidiaries | 20.9 | 2.6 | 23.9 | 6.1 | ||
Net earnings | 49.7 | 10.4 | 80.5 | 51.7 | ||
Comprehensive income (loss) | 50.5 | 12.9 | 79.6 | 57.3 | ||
Guarantor Subsidiaries | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [2] | 18.4 | ||||
Products cost of sales (exclusive of depreciation and amortization) | [2] | 30.1 | ||||
Guarantor Subsidiaries | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 115.6 | 112.3 | 397.7 | 386.7 | ||
Guarantor Subsidiaries | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 72.3 | 76.6 | 251 | 279.1 | ||
Non-guarantor Subsidiaries | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 31.9 | 37.1 | 123.1 | 124.8 | ||
Services cost of sales (exclusive of depreciation and amortization) | 16.9 | 20.1 | 61.6 | 59.2 | ||
Products cost of sales (exclusive of depreciation and amortization) | 4.6 | 4.3 | 20.9 | 20.7 | ||
Total cost of sales | 21.5 | 24.4 | 82.5 | 83.2 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 9.4 | 9.8 | 30.9 | 28.6 | ||
Restructuring, impairment and other charges-net | 0.1 | 0.1 | 1.9 | 1.3 | ||
Depreciation and amortization | 1.2 | 1.4 | 4 | 4.2 | ||
Other operating (income) expense | (26.9) | (26.9) | ||||
Income from operations | 26.6 | 1.4 | 30.7 | 7.5 | ||
Interest expense (income)-net | (0.2) | 0 | (0.4) | 0 | ||
Intercompany interest (income) expense - net | 0 | 0 | ||||
Investment and other income-net | (1.4) | 0 | (1.4) | 0 | ||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 28.2 | 1.4 | 32.5 | 7.5 | ||
Income tax expense (benefit) | 7.3 | (1.2) | 8.6 | 1.4 | ||
Earnings (loss) before equity in net income of subsidiaries | 20.9 | 2.6 | 23.9 | 6.1 | ||
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ||
Net earnings | 20.9 | 2.6 | 23.9 | 6.1 | ||
Comprehensive income (loss) | 21.5 | 4.8 | 21.7 | 10.7 | ||
Non-guarantor Subsidiaries | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [2] | 1.1 | ||||
Products cost of sales (exclusive of depreciation and amortization) | [2] | 2.2 | ||||
Non-guarantor Subsidiaries | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 24.9 | 30.1 | 94.1 | 91.2 | ||
Non-guarantor Subsidiaries | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | $ 7 | $ 7 | $ 29 | $ 33.6 | ||
[1] | Beginning in the quarter ended June 30, 2017, LSC Communications (“LSC”) no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, R.R. Donnelley & Sons Company (“RRD”) no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. | |||||
[2] | Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 56.2 | $ 52 | $ 32.2 | $ 36.2 |
Receivables, less allowances | 221.5 | 165.2 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 13.8 | 23.3 | ||
Prepaid expenses and other current assets | 16.4 | 29.6 | ||
Total current assets | 307.9 | 270.1 | ||
Property, plant and equipment-net | 31.7 | 34.7 | ||
Goodwill | 437.5 | 447.4 | ||
Other intangible assets-net | 29.3 | 39.9 | ||
Software-net | 46.4 | 41.1 | ||
Deferred income taxes | 14 | 22.2 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 46.6 | 38.1 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Total assets | 913.4 | 893.5 | 933.7 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 67.5 | 67.8 | ||
Intercompany payables | 0 | 0 | ||
Intercompany short-term note payable-net | 0 | 0 | ||
Accrued liabilities | 137.3 | 119.2 | ||
Total current liabilities | 204.8 | 187 | ||
Long-term debt | 397.2 | 458.3 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 21.7 | 22.8 | ||
Pension and other postretirement benefits plan liabilities | 47.7 | 52.5 | ||
Other noncurrent liabilities | 10.3 | 23.5 | ||
Total liabilities | 681.7 | 744.1 | ||
Total equity | 231.7 | 149.4 | 173.6 | 111.1 |
Total liabilities and equity | 913.4 | 893.5 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | (2.4) |
Receivables, less allowances | 0 | 0 | ||
Intercompany receivables | (116.1) | (146.4) | ||
Intercompany short-term note receivable-net | (45) | (30) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | (25.1) | ||
Total current assets | (161.1) | (201.5) | ||
Property, plant and equipment-net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets-net | 0 | 0 | ||
Software-net | 0 | 0 | ||
Deferred income taxes | (23.4) | (21.7) | ||
Intercompany long-term note receivable | (326) | |||
Other noncurrent assets | 0 | 0 | ||
Investments in consolidated subsidiaries | (565.2) | (813.6) | ||
Total assets | (1,075.7) | (1,036.8) | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | (116.1) | (146.4) | ||
Intercompany short-term note payable-net | (45) | (30) | ||
Accrued liabilities | 0 | (25.1) | ||
Total current liabilities | (161.1) | (201.5) | ||
Long-term debt | 0 | 0 | ||
Intercompany long-term note payable | (326) | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 0 | 0 | ||
Other noncurrent liabilities | (23.4) | (21.7) | ||
Total liabilities | (510.5) | (223.2) | ||
Total equity | (565.2) | (813.6) | ||
Total liabilities and equity | (1,075.7) | (1,036.8) | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 20.5 | 8.3 | 0.2 | 0 |
Receivables, less allowances | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 37.1 | ||
Total current assets | 20.5 | 45.4 | ||
Property, plant and equipment-net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets-net | 0 | 0 | ||
Software-net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany long-term note receivable | 326 | |||
Other noncurrent assets | 2.7 | 3.4 | ||
Investments in consolidated subsidiaries | 456.2 | 728.4 | ||
Total assets | 805.4 | 777.2 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | 111.1 | 139.5 | ||
Intercompany short-term note payable-net | 45 | 30 | ||
Accrued liabilities | 18.1 | 0 | ||
Total current liabilities | 174.2 | 169.5 | ||
Long-term debt | 397.2 | 458.3 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 0 | 0 | ||
Other noncurrent liabilities | 2.3 | 0 | ||
Total liabilities | 573.7 | 627.8 | ||
Total equity | 231.7 | 149.4 | ||
Total liabilities and equity | 805.4 | 777.2 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 5.6 | 27.9 | 21.3 | 21.8 |
Receivables, less allowances | 183.5 | 131.3 | ||
Intercompany receivables | 116.1 | 146.4 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 10.9 | 21.3 | ||
Prepaid expenses and other current assets | 14.1 | 14.8 | ||
Total current assets | 330.2 | 341.7 | ||
Property, plant and equipment-net | 28.7 | 31.2 | ||
Goodwill | 425.7 | 429.2 | ||
Other intangible assets-net | 24 | 32.4 | ||
Software-net | 46.4 | 40.6 | ||
Deferred income taxes | 34.6 | 40.5 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 37.8 | 30 | ||
Investments in consolidated subsidiaries | 109 | 85.2 | ||
Total assets | 1,036.4 | 1,030.8 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 53.1 | 57.9 | ||
Intercompany payables | 0 | 0 | ||
Intercompany short-term note payable-net | 0 | 0 | ||
Accrued liabilities | 103.3 | 127.6 | ||
Total current liabilities | 156.4 | 185.5 | ||
Long-term debt | 0 | 0 | ||
Intercompany long-term note payable | 326 | |||
Deferred compensation liabilities | 21.7 | 22.8 | ||
Pension and other postretirement benefits plan liabilities | 46.6 | 51.3 | ||
Other noncurrent liabilities | 29.5 | 42.8 | ||
Total liabilities | 580.2 | 302.4 | ||
Total equity | 456.2 | 728.4 | ||
Total liabilities and equity | 1,036.4 | 1,030.8 | ||
Non-guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 30.1 | 15.8 | $ 10.7 | $ 16.8 |
Receivables, less allowances | 38 | 33.9 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 45 | 30 | ||
Inventories | 2.9 | 2 | ||
Prepaid expenses and other current assets | 2.3 | 2.8 | ||
Total current assets | 118.3 | 84.5 | ||
Property, plant and equipment-net | 3 | 3.5 | ||
Goodwill | 11.8 | 18.2 | ||
Other intangible assets-net | 5.3 | 7.5 | ||
Software-net | 0 | 0.5 | ||
Deferred income taxes | 2.8 | 3.4 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 6.1 | 4.7 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Total assets | 147.3 | 122.3 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 14.4 | 9.9 | ||
Intercompany payables | 5 | 6.9 | ||
Intercompany short-term note payable-net | 0 | 0 | ||
Accrued liabilities | 15.9 | 16.7 | ||
Total current liabilities | 35.3 | 33.5 | ||
Long-term debt | 0 | 0 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 1.1 | 1.2 | ||
Other noncurrent liabilities | 1.9 | 2.4 | ||
Total liabilities | 38.3 | 37.1 | ||
Total equity | 109 | 85.2 | ||
Total liabilities and equity | $ 147.3 | $ 122.3 |
Guarantor Financial Informati_6
Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | $ 10.4 | $ 33.7 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | $ (7.2) | $ (8) | (22.8) | (20) |
Sale (purchase) of investment | 3.1 | (3.4) | ||
Proceeds from disposition | 77.1 | 0 | ||
Intercompany note receivable, net | 0 | 0 | ||
Other investing activities | 0 | 0.3 | ||
Net cash provided by (used in) investing activities | 57.4 | (23.1) | ||
FINANCING ACTIVITIES | ||||
Revolving facility borrowings | 255 | 230 | ||
Payments on revolving facility borrowings | (255) | (230) | ||
Payments on long-term debt | (62.5) | (100) | ||
Debt issuance costs | 0 | (1.5) | ||
Separation-related payment from R.R. Donnelley | 0 | 68 | ||
Intercompany note payable, net | 0 | 0 | ||
Proceeds from the issuance of common stock | 1.2 | 18.8 | ||
Treasury stock repurchases | (0.8) | (0.9) | ||
Other financing activities | 0 | 0.4 | ||
Net cash used in financing activities | (62.1) | (15.2) | ||
Effect of exchange rate on cash and cash equivalents | (1.5) | 0.6 | ||
Net increase (decrease) in cash and cash equivalents | 4.2 | (4) | ||
Cash and cash equivalents at beginning of year | 52 | 36.2 | ||
Cash and cash equivalents at end of period | 56.2 | 32.2 | 56.2 | 32.2 |
Supplemental non-cash disclosure: | ||||
Intercompany debt allocation | 0 | |||
Eliminations | ||||
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | 0 | 2.4 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | 0 | 0 | ||
Sale (purchase) of investment | 0 | 0 | ||
Proceeds from disposition | 0 | |||
Intercompany note receivable, net | 15 | 19.7 | ||
Other investing activities | 0 | |||
Net cash provided by (used in) investing activities | 15 | 19.7 | ||
FINANCING ACTIVITIES | ||||
Revolving facility borrowings | 0 | 0 | ||
Payments on revolving facility borrowings | 0 | 0 | ||
Payments on long-term debt | 0 | 0 | ||
Debt issuance costs | 0 | |||
Separation-related payment from R.R. Donnelley | 0 | |||
Intercompany note payable, net | (15) | (19.7) | ||
Proceeds from the issuance of common stock | 0 | 0 | ||
Treasury stock repurchases | 0 | 0 | ||
Other financing activities | 0 | |||
Net cash used in financing activities | (15) | (19.7) | ||
Effect of exchange rate on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 2.4 | ||
Cash and cash equivalents at beginning of year | 0 | (2.4) | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Supplemental non-cash disclosure: | ||||
Intercompany debt allocation | 0 | |||
Parent | ||||
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | 59.3 | (4.3) | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | 0 | 0 | ||
Sale (purchase) of investment | 0 | 0 | ||
Proceeds from disposition | 0 | |||
Intercompany note receivable, net | 0 | 0 | ||
Other investing activities | 0 | |||
Net cash provided by (used in) investing activities | 0 | 0 | ||
FINANCING ACTIVITIES | ||||
Revolving facility borrowings | 255 | 230 | ||
Payments on revolving facility borrowings | (255) | (230) | ||
Payments on long-term debt | (62.5) | (100) | ||
Debt issuance costs | (1.5) | |||
Separation-related payment from R.R. Donnelley | 68 | |||
Intercompany note payable, net | 15 | 19.7 | ||
Proceeds from the issuance of common stock | 1.2 | 18.8 | ||
Treasury stock repurchases | (0.8) | (0.9) | ||
Other financing activities | 0.4 | |||
Net cash used in financing activities | (47.1) | 4.5 | ||
Effect of exchange rate on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 12.2 | 0.2 | ||
Cash and cash equivalents at beginning of year | 8.3 | 0 | ||
Cash and cash equivalents at end of period | 20.5 | 0.2 | 20.5 | 0.2 |
Supplemental non-cash disclosure: | ||||
Intercompany debt allocation | (326) | |||
Guarantor Subsidiaries | ||||
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | (38) | 21.8 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (21.9) | (19.2) | ||
Sale (purchase) of investment | 3.1 | (3.4) | ||
Proceeds from disposition | 34.5 | |||
Intercompany note receivable, net | 0 | 0 | ||
Other investing activities | 0.3 | |||
Net cash provided by (used in) investing activities | 15.7 | (22.3) | ||
FINANCING ACTIVITIES | ||||
Revolving facility borrowings | 0 | 0 | ||
Payments on revolving facility borrowings | 0 | 0 | ||
Payments on long-term debt | 0 | 0 | ||
Debt issuance costs | 0 | |||
Separation-related payment from R.R. Donnelley | 0 | |||
Intercompany note payable, net | 0 | 0 | ||
Proceeds from the issuance of common stock | 0 | 0 | ||
Treasury stock repurchases | 0 | 0 | ||
Other financing activities | 0 | |||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (22.3) | (0.5) | ||
Cash and cash equivalents at beginning of year | 27.9 | 21.8 | ||
Cash and cash equivalents at end of period | 5.6 | 21.3 | 5.6 | 21.3 |
Supplemental non-cash disclosure: | ||||
Intercompany debt allocation | 326 | |||
Non-guarantor Subsidiaries | ||||
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | (10.9) | 13.8 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (0.9) | (0.8) | ||
Sale (purchase) of investment | 0 | 0 | ||
Proceeds from disposition | 42.6 | |||
Intercompany note receivable, net | (15) | (19.7) | ||
Other investing activities | 0 | |||
Net cash provided by (used in) investing activities | 26.7 | (20.5) | ||
FINANCING ACTIVITIES | ||||
Revolving facility borrowings | 0 | 0 | ||
Payments on revolving facility borrowings | 0 | 0 | ||
Payments on long-term debt | 0 | 0 | ||
Debt issuance costs | 0 | |||
Separation-related payment from R.R. Donnelley | 0 | |||
Intercompany note payable, net | 0 | 0 | ||
Proceeds from the issuance of common stock | 0 | 0 | ||
Treasury stock repurchases | 0 | 0 | ||
Other financing activities | 0 | |||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate on cash and cash equivalents | (1.5) | 0.6 | ||
Net increase (decrease) in cash and cash equivalents | 14.3 | (6.1) | ||
Cash and cash equivalents at beginning of year | 15.8 | 16.8 | ||
Cash and cash equivalents at end of period | $ 30.1 | $ 10.7 | 30.1 | $ 10.7 |
Supplemental non-cash disclosure: | ||||
Intercompany debt allocation | $ 0 |