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 | LKSD | |
Entity Registrant Name | LSC Communications, Inc. | |
Entity Central Index Key | 1,669,812 | |
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 | 33,319,757 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 20 | $ 34 |
Receivables, less allowances for doubtful accounts of $14 in 2018 (2017 - $11) | 772 | 727 |
Inventories (Note 4) | 244 | 238 |
Prepaid expenses and other current assets | 41 | 47 |
Total current assets | 1,077 | 1,046 |
Property, plant and equipment-net (Note 5) | 514 | 576 |
Goodwill (Note 6) | 107 | 82 |
Other intangible assets-net (Note 6) | 165 | 160 |
Deferred income taxes | 12 | 51 |
Other noncurrent assets | 97 | 99 |
Total assets | 1,972 | 2,014 |
LIABILITIES | ||
Accounts payable | 351 | 406 |
Accrued liabilities | 219 | 239 |
Short-term debt and current portion of long-term debt (Note 9) | 276 | 123 |
Total current liabilities | 846 | 768 |
Long-term debt (Note 9) | 670 | 699 |
Pension liabilities | 126 | 182 |
Restructuring and multi-employer pension liabilities (Note 7) | 46 | 49 |
Other noncurrent liabilities | 65 | 68 |
Total liabilities | 1,753 | 1,766 |
Commitments and Contingencies (Note 8) | ||
EQUITY (Note 10) | ||
Common stock, $0.01 par value Authorized: 65,000,000 Issued: 34,882,123 shares in 2018 (2017: 34,610,931) | 0 | 0 |
Additional paid-in-capital | 826 | 816 |
Accumulated deficit | (18) | (90) |
Accumulated other comprehensive loss (Note 14) | (566) | (476) |
Treasury stock, at cost: 1,834,161 shares in 2018 (2017: 100,256) | (23) | (2) |
Total equity | 219 | 248 |
Total liabilities and equity | $ 1,972 | $ 2,014 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 14 | $ 11 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 65,000,000 | 65,000,000 |
Common stock, Issued | 34,882,123 | 34,610,931 |
Treasury stock, shares | 1,834,161 | 100,256 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED 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 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,015 | $ 935 | $ 2,887 | $ 2,604 |
Type of Revenue [Extensible List] | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember |
Cost of sales | $ 862 | $ 778 | $ 2,468 | $ 2,175 |
Type of Cost, Good or Service [Extensible List] | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | $ 77 | $ 76 | $ 242 | $ 228 |
Restructuring, impairment and other charges-net (Note 7) | 1 | 60 | 18 | 87 |
Depreciation and amortization | 34 | 39 | 106 | 118 |
Income (loss) from operations | 41 | (18) | 53 | (4) |
Interest expense-net | 21 | 19 | 59 | 52 |
Investment and other (income)-net | (11) | (11) | (35) | (34) |
Income (loss) before income taxes | 31 | (26) | 29 | (22) |
Income tax expense (benefit) | 35 | (23) | 36 | (23) |
Net (loss) income | $ (4) | $ (3) | $ (7) | $ 1 |
Net (loss) earnings per common share (Note 11) | ||||
Basic net (loss) earnings per share | $ (0.12) | $ (0.07) | $ (0.21) | $ 0.03 |
Diluted net (loss) earnings per share | (0.12) | (0.07) | (0.21) | 0.03 |
Dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.78 | $ 0.75 |
Weighted-average number of common shares outstanding: | ||||
Basic | 33.2 | 34.2 | 34 | 33.5 |
Diluted | 33.2 | 34.2 | 34 | 33.8 |
CONDENSED CONSOLIDATED STATEM_2
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 (loss) income | $ (4) | $ (3) | $ (7) | $ 1 |
Other comprehensive income (loss), net of tax (Note 14): | ||||
Translation adjustments | 5 | 2 | (4) | 20 |
Adjustment for net periodic pension plan cost, net of tax of $2 million and $4 million for the three and nine months ended September 30, 2018, respectively, and $2 million and $5 million for three and nine months ended 2017, respectively | 3 | 3 | 11 | 8 |
Other comprehensive income | 8 | 5 | 7 | 28 |
Comprehensive income | $ 4 | $ 2 | $ 0 | $ 29 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - 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] | ||||
Adjustments for net pension plan cost, tax expense | $ 2 | $ 2 | $ 4 | $ 5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (7) | $ 1 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Impairment charges | 0 | 55 |
Depreciation and amortization | 106 | 118 |
Provision for doubtful accounts receivable | 5 | 3 |
Share-based compensation | 10 | 10 |
Deferred income taxes | 30 | (14) |
Other | 5 | 3 |
Changes in operating assets and liabilities - net of acquisitions and dispositions: | ||
Accounts receivable-net | (44) | (48) |
Inventories | (53) | (20) |
Prepaid expenses and other current assets | (3) | (3) |
Accounts payable | (45) | 36 |
Income taxes payable and receivable | 8 | (29) |
Accrued liabilities and other | (38) | (54) |
Net cash (used in) provided by operating activities | (26) | 58 |
Cash Flows from Investing Activities | ||
Capital expenditures | (52) | (51) |
Acquisitions of businesses, net of cash acquired | (54) | (175) |
Disposition of business | 45 | 0 |
Net (payments) and proceeds from purchase and sales of investments | (3) | 1 |
Proceeds from sales of other assets | 7 | 7 |
Net cash (used in) investing activities | (57) | (218) |
Cash Flows from Financing Activities | ||
Payments of current maturities and long-term debt | (39) | (53) |
Net proceeds from credit facility borrowings | 158 | 140 |
Proceeds from issuance of common stock | 0 | 18 |
Payments for repurchase of common stock | (20) | 0 |
Dividends paid | (26) | (25) |
Other financing activities | (1) | 0 |
Payments from RRD-net | 0 | 3 |
Net cash provided by financing activities | 72 | 83 |
Effect of exchange rate on cash and cash equivalents | (1) | 5 |
Net (decrease) in cash, cash equivalents and restricted cash | (12) | (72) |
Cash, cash equivalents and restricted cash at beginning of year | 35 | 97 |
Cash, cash equivalents and restricted cash at end of period | 23 | 25 |
Fairrington | ||
Supplemental non-cash disclosure: | ||
Issuance of shares of LSC Communications, Inc. common stock for acquisition of a business | $ 0 | $ 20 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Reconciliation to the Condensed Consolidated Balance Sheets | |||
Cash and cash equivalents | $ 20 | $ 34 | |
Restricted cash included in prepaid expenses and other current assets | $ 3 | $ 1 | |
Restricted Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows | $ 23 | $ 25 | $ 35 |
Fairrington | |||
Supplemental non-cash disclosure: | |||
Issuance of stock for acquisitions of businesses | 0 | 1 |
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 The principal business of LSC Communications, Inc., a Delaware corporation, and its direct or indirect wholly-owned subsidiaries (“LSC Communications,” “the Company,” “we,” “our” and “us”) is to offer a broad scope of traditional and digital print, print-related services and office products. The Company serves the needs of publishers, merchandisers and retailers worldwide with a service offering that includes e-services, logistics, warehousing and fulfillment and supply chain management. The Company utilizes a broad portfolio of technology capabilities coupled with consultative attention to clients' needs to increase speed to market, reduce costs, provide postal savings to customers and improve efficiencies. Description of Separation On October 1, 2016 (the “separation date”), R. R. Donnelley & Sons Company (“RRD” or the “Parent”) completed the previously announced separation (the “separation”) into three separate independent publicly-traded companies: (i) its publishing and retail-centric print services and office products business (“LSC Communications”); (ii) its financial communications services business (“Donnelley Financial Solutions, Inc.” or “Donnelley Financial”) and (iii) a global, customized multichannel communications management company, which is the business of RRD after the separation. To effect the separation, RRD undertook a series of transactions to separate net assets and legal entities. RRD completed the distribution (the “distribution”) of 80.75% of the outstanding common stock of LSC Communications and Donnelley Financial to RRD stockholders on October 1, 2016. RRD retained a % ownership stake in both LSC Communications and Donnelley Financial. On October 1, 2016, RRD stockholders of record as of the close of business on September 23, 2016 (“the record date”) received one share of LSC Communications common stock and one share of Donnelley Financial common stock for every eight shares of RRD common stock held as of the record date. . Basis of Presentation The condensed consolidated financial statements include the balance sheets, statements of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). All intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. During the third quarter of 2018, management changed the Company’s reportable segments and reporting units and restated prior year amounts to conform to the new segment structure. Refer to Note 15, Segment Information 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”) in the first quarter of 2018. As a result of the adoption of ASU 2017-07, the Company will reclassify $46 million and $45 million related to the years ended December 31, 2017 and 2016, respectively, of net pension income out of income from operations to investment and other (income)-net, resulting in no impact to net income. The Company reclassified $11 million and $34 million of net pension income from selling, general and administrative expenses to investment and other income-net in the condensed consolidated statement of operations for the three and nine months ended September 30, 2017. The Company adopted in the first quarter of 2018. The standard amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard does not provide a definition of restricted cash or restricted cash equivalents. The standard requires a retrospective transition method to be applied to each period presented. The Company included a reconciliation of beginning-of-period and end-of-period amounts in condensed consolidated statements of cash flows to the condensed consolidated balance sheets. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations and Disposition | Note 2. Business Combinations and Disposition 2018 Acquisition On July 2, 2018, the Company completed the acquisition of RRD's Print Logistics business (“Print Logistics”), total purchase price was $58 million in cash, of which $25 million was recorded in goodwill. For the three and nine months ended September 30, 2018 2018 Disposition On September 28, 2018, the Company completed the sale of its European printing business, which included web offset manufacturing facilities, a logistics and warehousing site and a location dedicated to premedia services, for proceeds of $48 million. For the three months ended September 30, 2018, the European printing business had $60 million and $2 million of net sales and income from operations, respectively. For the nine months ended September 30, 2018, the European printing business had $178 million and $3 million of net sales and income from operations, respectively. See Note 7, Restructuring, Impairment and Other Charges Income Taxes 2017 Acquisitions On November 29, 2017, the Company acquired The Clark Group, Inc. (“Clark Group”), a third-party logistics provider of distribution, consolidation, transportation management and international freight forwarding services. The acquisition enhanced the Company’s logistics service offering. The total purchase price was $25 million in cash, of which $16 million was recorded in goodwill. On November 9, 2017, the Company acquired Quality Park, a producer of envelopes, mailing supplies and assorted packaging items. The acquisition enhanced the Company’s office products offerings. On September 7, 2017, the Company acquired Publishers Press, LLC, a printing provider with capabilities such as web-offset printing, prepress and distribution services for magazines and retail brands. The acquisition enhanced the Company’s printing capabilities. The total purchase price was $68 million in cash, of which $1 million was recorded in goodwill. On August 21, 2017, the Company acquired the assets of NECI, LLC (“NECI”), a supplier of commodity and specialty filing supplies On On July 28, 2017, the Company acquired Fairrington Transportation Corp., F.T.C. Transport, Inc. and F.T.C. Services, Inc. (“Fairrington”), a full-service, printer-independent mailing logistics provider in the United States. The acquisition enhanced the Company’s logistics service offering. The purchase price was $19 million in cash and approximately 1.0 million shares of LSC Communications common stock, for a total transaction value of $39 million. Of the total purchase price, $22 million was recorded in goodwill. On March 1, 2017, the Company acquired HudsonYards Studios, LLC (“HudsonYards”), a digital and print premedia production company that provides high-quality creative retouching, computer-generated imagery, mechanical creation, press-ready file preparation, and interactive production services. The acquisition enhanced the Company’s digital and premedia capabilities. The purchase price for HudsonYards was $3 million in cash, of which $2 million was recorded in goodwill. Refer below for a summary of the segments and reporting units where the acquisitions are included as of September 30, 2018. Segment Reporting Unit Print Logistics Magazines, Catalogs and Logistics Logistics Clark Group Magazines, Catalogs and Logistics Logistics Quality Park Office Products Office Products Publishers Press Magazines, Catalogs and Logistics Magazines and Catalogs NECI Office Products Office Products CREEL Magazines, Catalogs and Logistics Magazines and Catalogs Fairrington Magazines, Catalogs and Logistics Logistics HudsonYards Magazines, Catalogs and Logistics Magazines and Catalogs The acquisitions were recorded by allocating the cost of the acquisitions to the assets acquired, including other intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisitions over the net amounts assigned to the fair value of the assets acquired was recorded in goodwill. The goodwill is primarily attributable to the synergies expected to arise as a result of the acquisitions. The preliminary tax deductible goodwill related to the Print Logistics, Clark Group, Quality Park, Publishers Press, NECI, CREEL, Fairrington, and HudsonYards acquisitions was $62 million. The purchase price allocation for Print Logistics is preliminary as of September 30, 2018 because the valuations necessary to assess the fair values of the net assets and liabilities acquired are still in process, as well as the finalization of the working capital adjustments are pending. The purchase price allocation for Quality Park is preliminary as of September 30, 2018 as the finalization of the working capital adjustments are pending. The final purchase price allocations for Print Logistics and Quality Park may differ from what is currently reflected in the condensed consolidated financial statements. The purchase price allocations for the Clark Group, Publishers Press, NECI, CREEL, Fairrington, and HudsonYards acquisitions are final as of September 30, 2018. There were no significant changes to the purchase price allocations for 2017 acquisitions as of September 30, 2018 compared to the disclosed purchase price allocations in the Company’s annual report on Form 10-K for the year ended December 31, 2017. The purchase price allocations for several of the acquisitions noted above were as follows: Print Logistics Clark Group Quality Park Publishers Press CREEL Fairrington Accounts Receivable $ 39 $ 6 $ 19 $ 27 $ 12 $ 6 Inventories — — 27 13 5 — Prepaid expenses and other current assets 1 — 1 1 1 — Property, plant and equipment 8 — 8 36 20 6 Other intangible assets 20 14 1 — 23 17 Other noncurrent assets — — — 1 — 1 Goodwill (bargain purchase) 25 16 (2 ) 1 26 22 Accounts payable and accrued liabilities (35 ) (8 ) (11 ) (14 ) (9 ) (4 ) Deferred taxes - net — (3 ) (2 ) — — (9 ) Purchase price, net of cash acquired $ 58 $ 25 $ 41 $ 65 $ 78 $ 39 Less: value of common stock issued — — — — — 20 Less: accrued but unpaid contingent consideration — — — — 1 — Net cash paid $ 58 $ 25 $ 41 $ 65 $ 77 $ 19 In accordance with ASC 350, Intangibles — Goodwill and Other As a result of the goodwill impairment tests, and consistent with prior goodwill impairment tests, the Company’s former magazines, catalogs and retail inserts reporting unit’s fair value continued to be at a value below its carrying value. This is primarily due to the negative revenue trends experienced in recent years that are only partially offset by the impact of the new acquisitions. The charges to recognize the impairment of goodwill in the magazines, catalogs and retail inserts reporting unit were $55 million and $18 million during the three months ended September 30, 2017 and December 31, 2017, respectively. The total charge was $73 million for 2017, resulting in zero goodwill associated with the former magazines, catalogs and retail inserts reporting unit as of December 31, 2017. As a result of the Company’s change in reportable segments and reporting units during the third quarter of 2018, as discussed in Note 15, Segment Information Three Months Ended Year Ended September 30, 2017 December 31, 2017 Magazines and Catalogs $ 28 $ 30 Logistics 22 38 Other 5 5 Total $ 55 $ 73 Goodwill will be tested in future periods based on the new reporting unit structure. The fair values of goodwill, other intangible assets and property, plant and equipment associated with the acquisitions were determined to be Level 3 under the fair value hierarchy, which included discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions for the goodwill impairment charges. Fair Value Valuation Technique Unobservable Input Value Customer relationships $ 20 Multi-period excess earnings method Existing customer growth rate (3.5%) Attrition rate 7.5% Discount rate 18.0% For the three and nine months ended September 30, 2018, the Company recorded $2 million and $4 million of acquisition-related expenses, respectively, associated with the completed and contemplated acquisitions within selling, general and administrative expenses in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2017, the Company recorded $2 million and $3 million of acquisition-related expenses, respectively, associated with the completed and contemplated acquisitions. Pro forma results The following unaudited pro forma financial information for the three and nine months ended September 30, 2018 and 2017 presents the condensed consolidated statements of operations of the Company and the acquisitions described above, as if the acquisitions had occurred as of January 1 of the year prior to the acquisitions. The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s condensed consolidated statements of operations that would have been reported had these acquisitions been completed as of the beginning of the period presented and should not be taken as indicative of the Company’s future condensed consolidated statements of operations. Pro forma adjustments are tax-effected at the applicable statutory tax rates. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net sales $ 1,015 $ 1,059 $ 2,972 $ 3,051 Net (loss) income (4 ) (4 ) (10 ) 1 Net (loss) earnings per common share Basic $ (0.12 ) $ (0.12 ) $ (0.29 ) $ 0.03 Diluted $ (0.12 ) $ (0.12 ) $ (0.29 ) $ 0.03 The following table outlines unaudited pro forma financial information for the three and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amortization of purchased intangibles $ 5 $ 6 $ 15 $ 18 Additionally, the nonrecurring pro forma adjustments affecting net income 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 Restructuring, impairment and other charges, pre-tax $ — $ — $ — $ (1 ) Other pro forma adjustments, pre-tax — — — 2 Income taxes — — — 3 Acquisition-related expenses, pre-tax — (1) — (1 ) Inventory fair value adjustments, pre-tax — — — 1 Note: A negative number in the table above represents a decrease to income in pro forma net income. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3. Revenue Recognition Financial Statement Impact of Adopting ASC 606 The Company adopted Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”, or the “standard”) on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared and continue to be reported under the guidance of ASC 605, Revenue Recognition The Company assessed all aspects of the standard’s potential impact and focused further assessment on customized products, deferred revenue and certain items in inventory, which are areas that were determined could have had a material impact on the Company’s accounting for revenue. Potential impacts of other aspects of the standard have not had a material impact to the Company’s accounting for revenue. The Company completed the evaluation of whether the accounting for revenue from customized products should be over time or at a point in time under the standard. Based on analysis of specific terms associated with current customer contracts, the Company concluded that revenue should be recognized at a point in time for substantially all customized products. This treatment is consistent with revenue recognition under previous guidance, where revenue was recognized when the products were completed and shipped to the customer (dependent upon specific shipping terms). Any contracts whereby revenue for customized products should be recognized over time, as opposed to a point in time, are immaterial due to the de minimis nature of any particular order under such contracts in production at any given point in time. As revenue recognition is dependent upon individual contractual terms, the Company will continue its evaluation of any new or amended contracts entered into, including contracts that the Company might assume as a result of acquisition activity. With respect to deferred revenue and certain items in inventory, the Company determined ASC 606 impacted the following situations: • Completed production billed to the customer but not yet shipped: Under previous guidance, for a majority of these situations the Company deferred revenue for completed production items for which the customer had requested to be billed (or for which the Company is entitled to bill under the contract), but for which the production items had not yet shipped to the customer. Under ASC 606, based upon our evaluation of the contractual terms, the Company is typically able to recognize revenue once it completes production depending on the specific facts and circumstances. • Completed production held in inventory (including consigned inventory): With certain customer contracts, the Company is permitted to complete a pre-defined amount of product and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, the Company has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Under previous guidance, the Company held this as inventory and recognized revenue upon shipment to the customer. Under ASC 606, based upon our evaluation of the contractual terms, the Company is able to recognize revenue once it completes production. • Safety stock: In very limited situations, the Company is permitted to produce and hold in inventory a pre-defined amount of safety stock. Similar to completed production held in inventory, for these items the Company has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Under previous guidance, the Company held this as inventory and recognized revenue upon shipment to the customer. Under ASC 606, based upon our evaluation of the contractual terms, the Company is able to recognize revenue once it completes production. Upon adoption of ASC 606, the Company eliminated any deferred revenue and inventory associated with the above three categories against its accumulated deficit within total equity. Based upon the balances that existed as of December 31, 2017, the Company recorded adjustments to the following accounts as of January 1, 2018: As Reported Adjustments Adjusted December 31, Adoption of January 1, 2017 ASC 606 2018 Assets Receivables, net $ 727 $ 32 $ 759 Inventories 238 (32 ) 206 Deferred income taxes 51 (3 ) 48 Liabilities Accrued liabilities $ 239 $ (12 ) $ 227 Equity (Accumulated deficit) retained earnings $ (90 ) $ 9 $ (81 ) As a result of the above adjustments, total assets decreased by $3 million, total liabilities decreased by $12 million and total equity increased by $9 million. The equity adjustment was net of tax of $3 million. The following tables compare impacted accounts from the reported condensed consolidated balance sheet and statement of operations, as of and for the nine months ended September 30, 2018, to their pro forma amounts had the previous guidance been in effect: September 30, 2018 Adjustments Pro forma as if the Adoption of previous standard As Reported ASC 606 were in effect Assets Receivables, net $ 772 $ (40 ) $ 732 Inventories 244 39 283 Deferred income taxes 12 3 15 Liabilities Accounts payable $ 351 $ (1 ) $ 350 Accrued liabilities 219 13 232 Equity Accumulated deficit $ (18 ) $ (10 ) $ (28 ) The difference between the reported balances and the pro forma balances above is due to the deferred revenue and inventory in the pro forma balances associated with completed production billed to the customer but not yet shipped, completed production held in inventory (including consigned inventory) and safety stock. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Pro forma Pro forma Adjustments as if the Adjustments as if the from previous from previous Adoption of standard Adoption of standard As Reported ASC 606 was in effect As Reported ASC 606 were in effect Net sales $ 1,015 $ (11 ) $ 1,004 $ 2,887 $ (5 ) $ 2,882 Cost of sales 862 (8 ) 854 2,468 (4 ) 2,464 Income tax expense 35 (1 ) 34 36 — 36 Net (loss) per common share Basic net (loss) per share $ (0.12 ) $ (0.06 ) $ (0.18 ) $ (0.21 ) $ (0.03 ) $ (0.24 ) Diluted net (loss) per share (0.12 ) (0.06 ) (0.18 ) (0.21 ) (0.03 ) (0.24 ) The differences between the reported balances and the pro forma balances above are due to the following impacts: • The completed production items for which control has passed to the customer and the customer had requested to be billed (or for which the Company is entitled to bill under the contract), but for which the production items had not yet shipped: Under ASC 606, the Company recognizes revenue for items for which control has passed to the customer, which is typically once it completes production, while under previous guidance revenue would have been deferred until the produced items were shipped. • Variable consideration relating to paper over-consumption penalties and under-consumption credits that are part of certain customer contracts and were previously recorded in cost of sales are now recorded within revenue. The adoption of ASC 606 had no impact on the Company’s cash flows from operating activities. Revenue Recognition Policy The Company recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the upon shipment to the customer (dependent upon specific shipping terms). Under agreements with certain customers, custom products may be stored by the Company for future delivery. Based upon contractual terms, the Company is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). With certain customer contracts, the Company is permitted to complete a pre-defined amount of custom products and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, which include consigned inventory, the Company has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Based upon contractual terms, the Company recognizes revenue once the performance obligation has been satisfied and the customer obtains control of the completed products, usually when production is completed. In very limited situations, the Company is permitted to produce and hold in inventory a pre-defined amount of custom products as safety stock. Similar to completed production held in inventory, for these items, the Company has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Based upon our evaluation of the contractual terms, the Company is able to recognize revenue once the performance obligation has been satisfied and the customer obtains control of the completed product, usually when production is completed. Revenue from the Company’s print related services (including list processing, mail sortation services and supply chain management) is recognized as services are completed over time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. Variable consideration resulting from volume rebates, fixed rebates, penalties or credits for paper consumption, and sales discounts that are offered within contracts between the Company and its customers is recognized in the period the related revenue is recognized. Estimates of variable consideration are based on stated contract terms and an analysis of historical experience. The amount of variable consideration is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts 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, not distinct. For contracts with multiple performance obligations, such as co-mail and catalog production, the transaction price allocated to each performance obligation is based on the price stated in the customer contract, which represents the Company’s best estimate of the standalone selling price of each distinct good or service in the contract. Billings for shipping and handling costs are recorded gross. The Company made an accounting policy election under ASC 606 to account for shipping and handling after the customer obtains control of the good as fulfillment activities rather than as a separate service to the customer. As a result, the Company accrues the costs of the shipping and handling if revenue is recognized for the related good before the fulfillment activities occur. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers as part of the end product. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis. As a result, the Company’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 120 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. The timing of revenue recognition, billings and cash collections results in accounts receivable and unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheet. Revenue recognition generally coincides with the Company’s contractual right to consideration and the issuance of invoices to customers. Depending on the nature of the performance obligation and arrangements with customers, the timing of the issuance of invoices may result in contract assets or contract liabilities. Contract assets related to unbilled receivables are recognized for satisfied performance obligations for which the Company cannot yet issue an invoice. Contract liabilities result from advances or deposits from customers on performance obligations not yet satisfied. Because the majority of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer returns at the time of sale. Disaggregated Revenue The following table provides information about disaggregated revenue by major products/service lines and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Magazines, Magazines, Catalogs Catalogs and Office and Office Logistics Book Products Other Total Logistics Book Products Other Total Major Products / Service Lines Book (a) $ — $ 282 $ — $ — $ 282 $ — $ 797 $ — $ — $ 797 Magazines and Catalogs (b) $ 353 $ — $ — $ 99 $ 452 $ 1,126 $ — $ — $ 290 $ 1,416 North America 353 — — 44 397 1,126 — — 126 1,252 Europe — — — 55 55 — — — 164 164 Logistics $ 110 $ — $ — $ — $ 110 $ 165 $ — $ — $ — $ 165 Directories $ — $ — $ — $ 26 $ 26 $ — $ — $ — $ 87 $ 87 North America — — — 21 21 — — — 73 73 Europe — — — 5 5 — — — 14 14 Office Products $ — $ — $ 145 $ — $ 145 $ — $ — $ 422 $ — $ 422 Total $ 463 $ 282 $ 145 $ 125 $ 1,015 $ 1,291 $ 797 $ 422 $ 377 $ 2,887 Timing of Revenue Recognition Products and services transferred at a point in time $ 329 $ 245 $ 145 $ 105 $ 824 $ 1,039 $ 702 $ 422 $ 323 $ 2,486 Products and services transferred over time 134 37 — 20 191 252 95 — 54 401 Total $ 463 $ 282 $ 145 $ 125 $ 1,015 $ 1,291 $ 797 $ 422 $ 377 $ 2,887 (a) Includes e-book formatting and supply chain management associated with book production. (b) Includes premedia and co-mail Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: September 30, 2018 January 1, 2018 Trade receivables $ 585 $ 647 Short-term contract assets 38 31 Long-term contract assets 33 36 Short-term contract liabilities 18 21 Significant changes in the contract assets and the contract liabilities balances during the period are as follows: Nine Months Ended September 30, 2018 Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities as of January 1, 2018 $ — $ (18 ) Increases due to cash received — 15 Payment of contract acquisition costs 5 — Additions to unbilled accounts receivable 37 — Amortization of contract acquisition costs (8 ) — Unbilled accounts receivable recognized as receivables (30 ) — Transactions affecting the allowances for doubtful accounts receivable balance during the nine months ended September 30, 2018 were as follows: September 30, 2018 Balance, beginning of year $ 11 Provisions charged to expense 5 Write-offs and other (2 ) Balance, end of period $ 14 Contract Acquisition Costs In connection with the adoption of ASC 606, the Company is required to capitalize certain contract acquisition costs. As of December 31, 2017 under previous guidance, the Company had capitalized $36 million in contract acquisition costs related to contracts that were not completed. The Company did not have any other costs that were required to be capitalized on January 1, 2018 with the adoption of ASC 606. For contracts that have a duration of less than one year, the Company follows the ASC 606 practical expedient approach and expenses these costs when incurred; for contracts with life exceeding one year, the Company records these costs in proportion to each completed contract performance obligation. For the three and nine months ended September 30, 2018, the amount of amortization was $2 million and $8 million, respectively, and there was no impairment loss in relation to costs capitalized. |
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, December 31, 2018 2017 Raw materials and manufacturing supplies $ 142 $ 114 Work in process 63 69 Finished goods 92 112 Last in, first out ("LIFO") reserve (53 ) (57 ) Total $ 244 $ 238 |
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, December 31, 2018 2017 Land $ 43 $ 45 Buildings 709 739 Machinery and equipment 3,765 4,012 4,517 4,796 Less: Accumulated depreciation (4,003 ) (4,220 ) Total $ 514 $ 576 During the three and nine months ended September 30, 2018, depreciation expense was Assets Held for Sale Primarily as a result of restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $4 million at September 30, 2018 and $7 million at December 31, 2017. These assets were included in prepaid expenses and other current assets in the condensed consolidated balance sheets at the lower of their historical net book value or their estimated fair value, less estimated costs to sell. |
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 for the nine months ended September 30, 2018 were as follows: Magazines, Catalogs and Logistics Book Office Products Other Total Net book value as of December 31, 2017 Goodwill $ 502 $ 354 $ 110 $ 78 $ 1,044 Accumulated impairment losses (502 ) (303 ) (79 ) (78 ) (962 ) Total — 51 31 — 82 Acquisition 25 — — — 25 Net book value as of September 30, 2018 Goodwill 527 354 110 5 996 Accumulated impairment losses (502 ) (303 ) (79 ) (5 ) (889 ) Total $ 25 $ 51 $ 31 $ — $ 107 The components of other intangible assets at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 271 $ (133 ) $ 138 $ 256 $ (125 ) $ 131 Trade names 9 (6 ) 3 9 (4 ) 5 Total amortizable other intangible assets 280 (139 ) 141 265 (129 ) 136 Indefinite-lived trade names 24 — 24 24 — 24 Total other intangible assets $ 304 $ (139 ) $ 165 $ 289 $ (129 ) $ 160 The Company recorded customer relationships additions to other intangible assets of $20 million for the Print Logistics acquisition during the three months ended September 30, 2018, that has an amortization period of 10 years. During the three and nine months ended September 30, 2018, amortization expense for other intangible assets was $5 million and $14 million, respectively. During the three and nine months ended September 30, 2017, amortization expense for other intangible assets was $4 million and $12 million, respectively. The following table outlines the estimated annual amortization expense related to other intangible assets: For the year ending December 31, Amount 2018 $ 18 2019 18 2020 18 2021 16 2022 14 2023 and thereafter 71 Total $ 155 |
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 7. Restructuring, Impairment and Other Charges For the three and nine months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Other Total Three Months Ended Employee Restructuring Restructuring Other September 30, 2018 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ (1 ) $ 1 $ — $ — $ — $ — Book — 1 1 — — 1 Office Products — — — — — — Other 1 (1 ) — — — — Total $ — $ 1 $ 1 $ — $ — $ 1 Other Total Three Months Ended Employee Restructuring Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ — $ 1 $ 1 $ 50 $ — $ 51 Book — 1 1 — 1 2 Office Products — — — — — — Other — — — 5 — 5 Corporate — 2 2 — — 2 Total $ — $ 4 $ 4 $ 55 $ 1 $ 60 Other Total Nine Months Ended Employee Restructuring Restructuring Other September 30, 2018 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 3 $ 8 $ 11 $ (1 ) $ — $ 10 Book 1 3 4 — 1 5 Office Products 1 1 2 — — 2 Other 1 (1 ) — — — — Corporate 1 — 1 — — 1 Total $ 7 $ 11 $ 18 $ (1 ) $ 1 $ 18 Other Total Nine Months Ended Employee Restructuring Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 1 $ 3 $ 4 $ 50 $ 1 $ 55 Book 4 1 5 — 2 7 Office Products 1 — 1 — — 1 Other 1 1 2 5 — 7 Corporate — 17 17 — — 17 Total $ 7 $ 22 $ 29 $ 55 $ 3 $ 87 Restructuring and Impairment Charges For the three months ended September 30, 2018, the Company incurred a de minimis amount of employee-related termination charges, which was offset by a reversal of previously incurred employee-related restructuring charges of less than $1 million. For the nine months ended September 30, 2018, the Company incurred charges of $7 million for an aggregate of 329 employees, of whom 275 were terminated as of or prior to September 30, 2018, primarily related to the closure of one facility in the Magazines, Catalogs and Logistics segment and the reorganization of certain business units and corporate functions. For the three and nine months ended September 30, 2017, the Company incurred employee-related restructuring charges of a de minimis amount and $7 million for an aggregate of 516 employees, substantially all of whom were terminated as of or prior to September 30, 2018. These charges primarily related to one facility closure in the Book segment and the reorganization of certain business units. The Company incurred other restructuring charges of $4 million and $22 million for the three and nine months ended September 30, 2017, respectively, primarily related to charges incurred as a result of a terminated supplier contract and the exit from certain operations and facilities. Refer to Note 2, Business Combinations and Disposition Other Charges For the three and nine months ended September 30, 2018, the Company recorded a de minimis amount and $1 million of other charges for multiemployer pension plan withdrawal obligations unrelated to facility closures. The total liability for the withdrawal obligations associated with the Company’s decision to withdraw from certain multiemployer pension plans included $3 million in accrued liabilities and $19 million in restructuring and multiemployer pension plan liabilities at September 30, 2018. The Company’s withdrawal liabilities could be affected by the financial stability of other employers participating in such plans and any decisions by those employers to withdraw from such plans in the future. While it is not possible to quantify the potential impact of future events or circumstances, reductions in other employers’ participation in multiemployer pension plans, including certain plans from which the Company has previously withdrawn, could have a material effect on the Company’s previously estimated withdrawal liabilities and condensed consolidated balance sheets, statements of operations and cash flows. For the three and nine months ended September 30, 2017, the Company recorded other charges of $1 million and $3 million, respectively, for multiemployer pension plan withdrawal obligations unrelated to facility closures. Restructuring Reserve The restructuring reserve as of September 30, 2018 and December 31, 2017, and changes during the nine months ended September 30, 2018 were as follows: December 31, Restructuring Cash September 30, 2017 Charges Other Paid 2018 Employee terminations $ 8 $ 6 $ — $ (12 ) $ 2 Multiemployer pension plan withdrawal obligations 16 2 19 (4 ) 33 Other 2 8 — (9 ) 1 Total $ 26 $ 16 $ 19 $ (25 ) $ 36 The current portion of restructuring reserves of $9 million at September 30, 2018 was included in accrued liabilities, while the long-term portion of $27 million, which primarily related to multiemployer pension plan withdrawal obligations related to facility closures, was included in restructuring and multiemployer pension liabilities at September 30, 2018. During the three months ended March 31, 2018, the Company reclassified $19 million of multiemployer pension plan withdrawal obligations from non-restructuring liabilities to restructuring liabilities, of which $3 million and $16 million were recorded in the current and long-term portions of the reserves, respectively. The reclassification was primarily due to a facility closure in the Print segment during the three months ended March 31, 2018. The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by September 30, 2019. Payments on all of the Company’s multiemployer pension plan withdrawal obligations are scheduled to be completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to multiemployer pension plan withdrawal obligations. The restructuring liabilities classified as “other” consisted of other facility closing costs. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies The Company is subject to laws and regulations relating to the protection of the environment. The Company accrues for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are generally not discounted. The Company has been designated as a potentially responsible party or has received claims in nine active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate three other previously and currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that the Company’s liability could be joint and several, meaning that the Company could be required to pay an amount in excess of its proportionate share of the remediation costs. The Company’s understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of the Company’s estimated liability. The Company established reserves, recorded in accrued liabilities and other noncurrent liabilities, that it believes are adequate to cover its share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that the Company may undertake in the future. However, in the opinion of management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material effect on the Company’s condensed consolidated balance sheets, statements of operations and cash flows. 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 condensed consolidated balance sheets, statements of operations and cash flows. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt The Company’s debt at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Borrowings under the Revolving Credit Facility $ 229 $ 75 Term Loan Facility due September 30, 2022 (a) 270 306 8.75% Senior Secured Notes due October 15, 2023 450 450 Capital lease and other obligations 8 3 Unamortized debt issuance costs (11 ) (12 ) Total debt 946 822 Less: current portion (276 ) (123 ) Long-term debt $ 670 $ 699 (a) The borrowings under the Term Loan Facility are subject to a variable interest rate. As of September 30, 2018 and December 31, 2017, the interest rate was 7.74% and 7.07%, respectively. __________________________________ On September 30, 2016, the Company issued $450 million of Senior Secured Notes (the “Senior Notes”). On September 30, 2016 the Company entered into a credit agreement (the “Credit Agreement”) that provides for (i) a senior secured term loan B facility in an aggregate principal amount of $375 million (the “Term Loan Facility”) and (ii) a senior secured revolving credit facility in an aggregate principal amount of $400 million (the “Revolving Credit Facility”). The debt issuance costs and original issue discount are being amortized over the life of the facilities using the effective interest method. The Credit Agreement is subject to a number of covenants, including, but not limited to, a minimum Interest Coverage Ratio and a Consolidated Leverage Ratio, as defined in and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The Credit Agreement generally allows annual dividend payments of up to $50 million in the aggregate, though additional dividends may be allowed subject to certain conditions. Each of these covenants is subject to important exceptions and qualifications. Term Loan Facility On November 17, 2017, the Company amended the Credit Agreement to reduce the interest rate for the Term Loan Facility by 50 basis points and the LIBOR “floor” was also reduced by 25 basis points. Other terms, including the outstanding principal, maturity date and debt covenants were not amended. Select terms of the Term Loan Facility before and after the amendment include: Before Amendment After Amendment Interest rate (Company's option) Base rate + 5.00%; or LIBOR + 6.00% Base rate + 4.50%; or LIBOR + 5.50% LIBOR floor 1.00% 0.75% Amortization $13 million, first eight quarters; $11 million quarterly thereafter (as of original effective date) $13 million, first eight quarters; $11 million quarterly thereafter (as of original effective date) Maturity September 30, 2022 September 30, 2022 Under the terms of the Term Loan Facility, each of the syndicated lenders is deemed to have loaned a specific amount to the Company and has the right to repayment from the Company directly. Therefore, we concluded that the Term Loan Facility is a loan syndication under U.S. GAAP. As such, in order to determine whether the debt was modified or extinguished as a result of the amendment, we examined the amount of principal pre- and post-amendment by individual lender. As a result, we determined that $65 million of outstanding principal had been extinguished as of November 17, 2017, even though the total outstanding principal amongst all lenders pre- and post-amendment remained unchanged. Consequently, the amendment resulted in a pre-tax loss on debt extinguishment of $3 million related to the unamortized discount and debt issuance costs attributable to the $65 million of outstanding principal that had been considered extinguished. There was no net impact as of November 17, 2017 to cash and cash equivalents, total outstanding principal remained unchanged, and no cash was exchanged between the lenders and the Company (other than customary administrative fees). On February 2, 2017, the Company paid in advance for the Term Loan Facility the full amount of required amortization payments, $50 million, for the year ended December 31, 2017. Additional Debt Issuances Information The fair values of the Senior Notes and Term Loan Facility that were 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 debt was greater than its book value by approximately $10 million and $20 million at September 30, 2018 and December 31, 2017, respectively. There were $229 million and $75 million of borrowings under the Revolving Credit Facility as of September 30, 2018 and December 31, 2017, respectively. The weighted-average interest rate on borrowings under the Company’s Revolving Credit Facility was 5.09% during the nine months ended September 30, 2018. There were $21 million and $59 million of net interest expense during the three and nine months ended September 30, 2018, respectively. There were $19 million and $52 million of net interest expense during the three and nine months ended September 30, 2017, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | Note 10. Equity The Company’s equity balances and changes were as follows: Total Equity Total Equity 2018 2017 Balance at January 1 $ 248 $ 240 Net (loss) income (7 ) 1 Other comprehensive income 7 28 Share-based compensation 10 10 Issuance of share-based awards, net of withholdings and other (2 ) (1 ) Repurchase of common stock (20 ) — Revenue recognition adjustments 9 — Cash dividends paid (26 ) (25 ) Issuance of common stock — 38 Separation-related adjustments — (5 ) Balance at September 30 $ 219 $ 286 On May 31, 2018, the Company completed the repurchase approved by the Board of Directors of 1.6 million shares of common stock for a total cost of $20 million. During the three months ended March 31, 2018, the Company recorded $9 million in equity adjustments as a result of the adoption of ASC 606. Refer to Note 3, Revenue Recognition On July 28, 2017, the Company issued approximately 1.0 million shares of common stock in conjunction with the Fairrington acquisition, which shares had a closing date value of $20 million. On March 28, 2017, in connection with the over-allotment option granted to the underwriters as part of the secondary sale by RRD, LSC Communications completed the sale of approximately 0.9 million shares of common stock, receiving proceeds of $18 million. During the nine months ended September 30, 2017, the Company recorded certain separation-related adjustments related to the adjustment of assets and liabilities resulting from transactions with RRD. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11. Earnings Per Share On May 31, 2018, the Company completed the repurchase approved by the Board of Directors of 1.6 million shares of common stock for a total cost of $20 million. There were no shares of common stock purchased by the Company during the three and nine months ended September 30, 2017. During the nine months ended September 30, 2018 and 2017, Basic earnings per share (“EPS”) is calculated by dividing net earnings attributable to the Company’s stockholders by the weighted average number of common shares outstanding for the period. In computing diluted EPS, basic EPS is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock, RSUs, and PSUs. The following table shows the calculation of basic and diluted EPS, as well as a reconciliation of basic shares to diluted shares: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net (loss) earnings per common share: Basic $ (0.12 ) $ (0.07 ) $ (0.21 ) $ 0.03 Diluted $ (0.12 ) $ (0.07 ) $ (0.21 ) $ 0.03 Dividends declared per common share $ 0.26 $ 0.25 $ 0.78 $ 0.75 Numerator: Net (loss) income $ (4 ) $ (3 ) $ (7 ) $ 1 Denominator: Weighted average number of common shares outstanding 33.2 34.2 34.0 33.5 Dilutive options and awards — — — 0.3 Diluted weighted average number of common shares outstanding 33.2 34.2 34.0 33.8 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 12. Retirement Plans The Company is the sole sponsor of certain defined benefit pension plans that are included in the condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017. The components of the estimated net pension (income) loss 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 Qualified Non-Qualified & International Total Qualified Non-Qualified & International Total Interest cost $ 21 $ 1 $ 22 $ 63 $ 3 $ 66 Expected return on plan assets (39 ) — (39 ) (117 ) — (117 ) Amortization of actuarial loss 5 — 5 15 — 15 Net periodic benefit (income) loss $ (13 ) $ 1 $ (12 ) $ (39 ) $ 3 $ (36 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Qualified Non-Qualified & International Total Qualified Non-Qualified & International Total Interest cost $ 22 $ — $ 22 $ 65 $ 2 $ 67 Expected return on plan assets (38 ) — (38 ) (114 ) — (114 ) Amortization of actuarial loss 4 1 5 12 1 13 Net periodic benefit (income) loss $ (12 ) $ 1 $ (11 ) $ (37 ) $ 3 $ (34 ) The total net periodic income for the three and nine months ended September 30, 2018 and 2017 is included in the investment and other income-net line item in the condensed consolidated statements of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes U.S. Tax Cuts and Jobs Act (“Tax Act”) The Company’s accounting for the Tax Act remains provisional for amounts recorded as of December 31, 2017. As disclosed in the Company’s annual report on Form 10-K (Note 14, Income Taxes The Company has not made any additional measurement-period adjustments related to these items during the nine months ended September 30, 2018. The Company is continuing to gather additional information to complete the accounting for these items and expects to complete the accounting within the prescribed measurement period. 2018 Disposition As described in Note 2, Business Combinations and Disposition Income Tax Rates The effective income tax rates for the three and nine months ended September 30, 2018 reflect a $25 million non-cash tax provision related to the disposition of the Company’s European printing business. Additionally, the rates were impacted by the Tax Act including the reduction of the U.S. federal corporate tax rate from 35.0% to 21.0%, partially offset by the tax resulting from the inclusion of certain foreign-sourced earnings, referred to as the GILTI tax, as well as changes in deductions and permanent book-to-tax differences. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income | Note 14. Comprehensive Income The following table summarizes accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018 and changes during the nine months ended September 30, 2018. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2017 $ (428 ) $ (48 ) $ (476 ) Other comprehensive loss before reclassifications — (4 ) (4 ) Amounts reclassified from accumulated other comprehensive loss 11 — 11 Reclassification to accumulated deficit (97 ) — (97 ) Net change in accumulated other comprehensive loss (86 ) (4 ) (90 ) Balance at September 30, 2018 $ (514 ) $ (52 ) $ (566 ) The Company adopted ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”) in the first quarter of 2018. As a result of applying this standard in the period of adoption, the Company reclassified $97 million relating to the change in tax rate from accumulated other comprehensive loss to accumulated deficit in the Company’s condensed consolidated balance sheet during the three months ended March 31, 2018. The following table summarizes accumulated other comprehensive loss by component as of December 31, 2016 and September 30, 2017 and changes during the nine months ended September 30, 2017. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2016 $ (462 ) $ (69 ) $ (531 ) Other comprehensive income before reclassifications — 20 20 Amounts reclassified from accumulated other comprehensive loss 8 — 8 Net change in accumulated other comprehensive loss 8 20 28 Balance at September 30, 2017 $ (454 ) $ (49 ) $ (503 ) Refer to the condensed consolidated statements of comprehensive income for the components of comprehensive income for the three and nine months ended September 30, 2018 and 2017. 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 September 30, September 30, 2018 2017 2018 2017 Amortization of pension plan cost: Net actuarial loss (a) $ 5 $ 5 $ 15 $ 13 Reclassifications before tax 5 5 15 13 Income tax expense 2 2 4 5 Reclassifications, net of tax $ 3 $ 3 $ 11 $ 8 (a) These accumulated other comprehensive income components are included in the calculation of net periodic pension plan (income) expense that is recognized substantially all in investment and other income-net in the condensed consolidated statements of operations (see Note 12, Retirement Plans |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15. Segment Information During the third quarter of 2018, the Company realigned the reportable segments and reporting units to reflect its evolution since its separation from RRD in 2016, as well as changes from recent acquisition and disposal activity. All prior year amounts have been reclassified to conform to the Company’s current reporting structure. The Company’s segment and product and service offerings are summarized below: Magazines, Catalogs and Logistics The Magazines, Catalogs and Logistics segment primarily produces magazines and catalogs, as well as provides logistics services to the Company and other third-parties. The segment also provides certain other print-related services, including mail-list management and sortation. The segment has operations primarily in the U.S. The Magazines, Catalogs and Logistics segment is divided into two reporting units: magazines and catalogs; and logistics. Book The Book segment produces books for publishers primarily in the U.S. The segment also provides supply-chain management services and warehousing and fulfillment services, as well as e-book formatting for book publishers. Office Products The Office Products segment manufactures and sells branded and private label products in five core categories: filing products, envelopes, note-taking products, binder products, and forms. Other The Other grouping consists of the following non-reportable segments: Europe, Directories, Mexico, and Print Management. Mexico produces magazines, catalogs, statements, forms, and labels. Print Management provides outsourced print procurement and management services. The Company disposed of its European printing business in the third quarter of 2018. Corporate Corporate consists of unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and LIFO inventory provisions. In addition, share-based compensation expense is 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 with the condensed consolidated financial statements. Income (Loss) Depreciation Three Months Ended Net from and Capital September 30, 2018 Sales Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 463 $ 1 $ 16 $ 6 Book 282 21 12 7 Office Products 145 15 4 — Total reportable segments 890 37 32 13 Other 125 9 2 1 Corporate — (5 ) — 1 Total operations $ 1,015 $ 41 $ 34 $ 15 Income (Loss) Depreciation Three Months Ended Net from and Capital September 30, 2017 Sales Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 409 $ (41 ) $ 18 $ 6 Book 276 26 14 2 Office Products 116 11 4 1 Total reportable segments 801 (4 ) 36 9 Other 134 5 3 1 Corporate — (19 ) — 5 Total operations $ 935 $ (18 ) $ 39 $ 15 Income (Loss) Depreciation Nine Months Ended Net from Assets of and Capital September 30, 2018 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,291 $ (19 ) $ 795 $ 47 $ 20 Book 797 49 610 39 25 Office Products 422 30 363 11 1 Total reportable segments 2,510 60 1,768 97 46 Other 377 23 102 8 3 Corporate — (30 ) 102 1 3 Total operations $ 2,887 $ 53 $ 1,972 $ 106 $ 52 Income (Loss) Depreciation Nine Months Ended Net from Assets of and Capital September 30, 2017 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,099 $ (51 ) $ 813 $ 52 $ 20 Book 777 53 621 46 12 Office Products 352 32 316 11 3 Total reportable segments 2,228 34 1,750 109 35 Other 376 22 233 8 9 Corporate — (60 ) 90 1 7 Total operations $ 2,604 $ (4 ) $ 2,073 $ 118 $ 51 Restructuring, impairment and other charges by segment for the three and nine months ended September 30, 2018 and 2017 are disclosed in Note 7, Restructuring, Impairment and Other Charges. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 16. Related Parties On March 28, 2017, RRD completed the sale of approximately 6.2 million shares of LSC Communications common stock, representing its entire 19.25% retained ownership. Transactions with RRD Revenues and Purchases Given that RRD sold its remaining stake in LSC Communications on March 28, 2017, the following information is presented for the three months ended March 31, 2017 only. LSC Communications generates net revenue from sales to RRD’s subsidiaries. Net revenues from related party sales were $32 million for the three months ended March 31, 2017. LSC Communications utilizes RRD for freight, logistics and premedia services. There were cost of sales of $51 million related to freight, logistics and premedia services purchased from RRD for the three months ended March 31, 2017. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 17. New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 “Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification” (“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 is effective in the first quarter of 2019. Early adoption of ASU 2016-02 is permitted, however, the Company plans to adopt the standard in the first quarter of 2019. In July 2018, the FASB issued Accounting Standards Update No. 2018-11 “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”), which permits companies to initially apply the new leases standard at the adoption date and not restate periods prior to adoption. The Company plans to adopt ASU 2018-11. The Company is currently evaluating the impact of the provisions of ASU 2016-02 and anticipates it will be able to complete its analysis of all potential impacts of the standard, implement any system and process changes that might be necessary and educate the appropriate employees with respect to the new standard in order to effectively adopt the standard beginning in the first quarter of 2019. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events On October 30, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement” “Quad” “Merger Sub” “Merger” The Company and Quad have made customary representations, warranties and covenants in the Merger Agreement. Subject to certain exceptions outlined in the Merger Agreement, the Company has agreed to covenants relating to the Company’s business during the period between the execution of the Merger Agreement and the consummation of the Merger, including restrictions on its ability to issue any shares of its capital stock, repurchase any shares of its capital stock and incurring additional indebtedness outside the ordinary course of business. The Merger Agreement allows the Company to continue paying a regular quarterly dividend up to $0.26 per share. On October 30, 2018, concurrently with the execution of the Merger Agreement, the Company and the trustees (the “Trustees”) under the Amended and Restated Voting Trust Agreement, dated as of June 25, 2010, pursuant to which certain shares of capital stock of Quad are held by the Quad/Graphics, Inc. Voting Trust (the “Voting Trust”), entered into a voting and support agreement (the “Voting Agreement”). Pursuant to the Voting Agreement, the Trustees will vote all of the shares of Quad held by the Voting Trust, which they have, directly or indirectly, the right to vote or direct the voting thereof, in favor of the issuance of class A shares of Quad common stock in the Merger, and against any alternative acquisition proposal involving Quad or other action that would reasonably be expected to breach the obligations of Quad under the Merger Agreement or the Trustees under the Voting Agreement, or otherwise reasonably be expected to delay or adversely affect the Merger or the other transactions contemplated by the Merger Agreement. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition Policy | Revenue Recognition Policy The Company recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the upon shipment to the customer (dependent upon specific shipping terms). Under agreements with certain customers, custom products may be stored by the Company for future delivery. Based upon contractual terms, the Company is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). With certain customer contracts, the Company is permitted to complete a pre-defined amount of custom products and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, which include consigned inventory, the Company has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Based upon contractual terms, the Company recognizes revenue once the performance obligation has been satisfied and the customer obtains control of the completed products, usually when production is completed. In very limited situations, the Company is permitted to produce and hold in inventory a pre-defined amount of custom products as safety stock. Similar to completed production held in inventory, for these items, the Company has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Based upon our evaluation of the contractual terms, the Company is able to recognize revenue once the performance obligation has been satisfied and the customer obtains control of the completed product, usually when production is completed. Revenue from the Company’s print related services (including list processing, mail sortation services and supply chain management) is recognized as services are completed over time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. Variable consideration resulting from volume rebates, fixed rebates, penalties or credits for paper consumption, and sales discounts that are offered within contracts between the Company and its customers is recognized in the period the related revenue is recognized. Estimates of variable consideration are based on stated contract terms and an analysis of historical experience. The amount of variable consideration is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts 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, not distinct. For contracts with multiple performance obligations, such as co-mail and catalog production, the transaction price allocated to each performance obligation is based on the price stated in the customer contract, which represents the Company’s best estimate of the standalone selling price of each distinct good or service in the contract. Billings for shipping and handling costs are recorded gross. The Company made an accounting policy election under ASC 606 to account for shipping and handling after the customer obtains control of the good as fulfillment activities rather than as a separate service to the customer. As a result, the Company accrues the costs of the shipping and handling if revenue is recognized for the related good before the fulfillment activities occur. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers as part of the end product. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis. As a result, the Company’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 120 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. The timing of revenue recognition, billings and cash collections results in accounts receivable and unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheet. Revenue recognition generally coincides with the Company’s contractual right to consideration and the issuance of invoices to customers. Depending on the nature of the performance obligation and arrangements with customers, the timing of the issuance of invoices may result in contract assets or contract liabilities. Contract assets related to unbilled receivables are recognized for satisfied performance obligations for which the Company cannot yet issue an invoice. Contract liabilities result from advances or deposits from customers on performance obligations not yet satisfied. Because the majority of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer returns at the time of sale. |
Business Combinations and Dispo
Business Combinations and Disposition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Acquisition [Line Items] | |
Pro Forma Financial Information | The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s condensed consolidated statements of operations that would have been reported had these acquisitions been completed as of the beginning of the period presented and should not be taken as indicative of the Company’s future condensed consolidated statements of operations. Pro forma adjustments are tax-effected at the applicable statutory tax rates. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net sales $ 1,015 $ 1,059 $ 2,972 $ 3,051 Net (loss) income (4 ) (4 ) (10 ) 1 Net (loss) earnings per common share Basic $ (0.12 ) $ (0.12 ) $ (0.29 ) $ 0.03 Diluted $ (0.12 ) $ (0.12 ) $ (0.29 ) $ 0.03 The following table outlines unaudited pro forma financial information for the three and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amortization of purchased intangibles $ 5 $ 6 $ 15 $ 18 |
Nonrecurring Pro Forma Adjustments Affecting Net Income | Additionally, the nonrecurring pro forma adjustments affecting net income 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 Restructuring, impairment and other charges, pre-tax $ — $ — $ — $ (1 ) Other pro forma adjustments, pre-tax — — — 2 Income taxes — — — 3 Acquisition-related expenses, pre-tax — (1) — (1 ) Inventory fair value adjustments, pre-tax — — — 1 |
2018 and 2017 Acquisitions | |
Business Acquisition [Line Items] | |
Summary of Segments and Reporting Units where Acquisitions are Included | Refer below for a summary of the segments and reporting units where the acquisitions are included as of September 30, 2018. Segment Reporting Unit Print Logistics Magazines, Catalogs and Logistics Logistics Clark Group Magazines, Catalogs and Logistics Logistics Quality Park Office Products Office Products Publishers Press Magazines, Catalogs and Logistics Magazines and Catalogs NECI Office Products Office Products CREEL Magazines, Catalogs and Logistics Magazines and Catalogs Fairrington Magazines, Catalogs and Logistics Logistics HudsonYards Magazines, Catalogs and Logistics Magazines and Catalogs |
Schedule of Purchase Price Allocation for Acquisitions | The purchase price allocations for several of the acquisitions noted above were as follows: Print Logistics Clark Group Quality Park Publishers Press CREEL Fairrington Accounts Receivable $ 39 $ 6 $ 19 $ 27 $ 12 $ 6 Inventories — — 27 13 5 — Prepaid expenses and other current assets 1 — 1 1 1 — Property, plant and equipment 8 — 8 36 20 6 Other intangible assets 20 14 1 — 23 17 Other noncurrent assets — — — 1 — 1 Goodwill (bargain purchase) 25 16 (2 ) 1 26 22 Accounts payable and accrued liabilities (35 ) (8 ) (11 ) (14 ) (9 ) (4 ) Deferred taxes - net — (3 ) (2 ) — — (9 ) Purchase price, net of cash acquired $ 58 $ 25 $ 41 $ 65 $ 78 $ 39 Less: value of common stock issued — — — — — 20 Less: accrued but unpaid contingent consideration — — — — 1 — Net cash paid $ 58 $ 25 $ 41 $ 65 $ 77 $ 19 |
Summary of Impairment Charges Related to Reporting Units | As a result of the Company’s change in reportable segments and reporting units during the third quarter of 2018, as discussed in Note 15, Segment Information Three Months Ended Year Ended September 30, 2017 December 31, 2017 Magazines and Catalogs $ 28 $ 30 Logistics 22 38 Other 5 5 Total $ 55 $ 73 |
Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three | The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements: Fair Value Valuation Technique Unobservable Input Value Customer relationships $ 20 Multi-period excess earnings method Existing customer growth rate (3.5%) Attrition rate 7.5% Discount rate 18.0% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Disaggregated Revenue | The following table provides information about disaggregated revenue by major products/service lines and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Magazines, Magazines, Catalogs Catalogs and Office and Office Logistics Book Products Other Total Logistics Book Products Other Total Major Products / Service Lines Book (a) $ — $ 282 $ — $ — $ 282 $ — $ 797 $ — $ — $ 797 Magazines and Catalogs (b) $ 353 $ — $ — $ 99 $ 452 $ 1,126 $ — $ — $ 290 $ 1,416 North America 353 — — 44 397 1,126 — — 126 1,252 Europe — — — 55 55 — — — 164 164 Logistics $ 110 $ — $ — $ — $ 110 $ 165 $ — $ — $ — $ 165 Directories $ — $ — $ — $ 26 $ 26 $ — $ — $ — $ 87 $ 87 North America — — — 21 21 — — — 73 73 Europe — — — 5 5 — — — 14 14 Office Products $ — $ — $ 145 $ — $ 145 $ — $ — $ 422 $ — $ 422 Total $ 463 $ 282 $ 145 $ 125 $ 1,015 $ 1,291 $ 797 $ 422 $ 377 $ 2,887 Timing of Revenue Recognition Products and services transferred at a point in time $ 329 $ 245 $ 145 $ 105 $ 824 $ 1,039 $ 702 $ 422 $ 323 $ 2,486 Products and services transferred over time 134 37 — 20 191 252 95 — 54 401 Total $ 463 $ 282 $ 145 $ 125 $ 1,015 $ 1,291 $ 797 $ 422 $ 377 $ 2,887 (a) Includes e-book formatting and supply chain management associated with book production. (b) Includes premedia and co-mail |
Schedule of Information About Receivables, Contract Assets, Contract Liabilities and Changes in Contract with Customers | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: September 30, 2018 January 1, 2018 Trade receivables $ 585 $ 647 Short-term contract assets 38 31 Long-term contract assets 33 36 Short-term contract liabilities 18 21 Significant changes in the contract assets and the contract liabilities balances during the period are as follows: Nine Months Ended September 30, 2018 Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities as of January 1, 2018 $ — $ (18 ) Increases due to cash received — 15 Payment of contract acquisition costs 5 — Additions to unbilled accounts receivable 37 — Amortization of contract acquisition costs (8 ) — Unbilled accounts receivable recognized as receivables (30 ) — |
Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable | Transactions affecting the allowances for doubtful accounts receivable balance during the nine months ended September 30, 2018 were as follows: September 30, 2018 Balance, beginning of year $ 11 Provisions charged to expense 5 Write-offs and other (2 ) Balance, end of period $ 14 |
ASU 2014-09 | |
Impact of Adoption of ASC 606 on Financial Statements | As Reported Adjustments Adjusted December 31, Adoption of January 1, 2017 ASC 606 2018 Assets Receivables, net $ 727 $ 32 $ 759 Inventories 238 (32 ) 206 Deferred income taxes 51 (3 ) 48 Liabilities Accrued liabilities $ 239 $ (12 ) $ 227 Equity (Accumulated deficit) retained earnings $ (90 ) $ 9 $ (81 ) The following tables compare impacted accounts from the reported condensed consolidated balance sheet and statement of operations, as of and for the nine months ended September 30, 2018, to their pro forma amounts had the previous guidance been in effect: September 30, 2018 Adjustments Pro forma as if the Adoption of previous standard As Reported ASC 606 were in effect Assets Receivables, net $ 772 $ (40 ) $ 732 Inventories 244 39 283 Deferred income taxes 12 3 15 Liabilities Accounts payable $ 351 $ (1 ) $ 350 Accrued liabilities 219 13 232 Equity Accumulated deficit $ (18 ) $ (10 ) $ (28 ) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Pro forma Pro forma Adjustments as if the Adjustments as if the from previous from previous Adoption of standard Adoption of standard As Reported ASC 606 was in effect As Reported ASC 606 were in effect Net sales $ 1,015 $ (11 ) $ 1,004 $ 2,887 $ (5 ) $ 2,882 Cost of sales 862 (8 ) 854 2,468 (4 ) 2,464 Income tax expense 35 (1 ) 34 36 — 36 Net (loss) per common share Basic net (loss) per share $ (0.12 ) $ (0.06 ) $ (0.18 ) $ (0.21 ) $ (0.03 ) $ (0.24 ) Diluted net (loss) per share (0.12 ) (0.06 ) (0.18 ) (0.21 ) (0.03 ) (0.24 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of the Company's 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, December 31, 2018 2017 Raw materials and manufacturing supplies $ 142 $ 114 Work in process 63 69 Finished goods 92 112 Last in, first out ("LIFO") reserve (53 ) (57 ) Total $ 244 $ 238 |
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, December 31, 2018 2017 Land $ 43 $ 45 Buildings 709 739 Machinery and equipment 3,765 4,012 4,517 4,796 Less: Accumulated depreciation (4,003 ) (4,220 ) Total $ 514 $ 576 |
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 | The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: Magazines, Catalogs and Logistics Book Office Products Other Total Net book value as of December 31, 2017 Goodwill $ 502 $ 354 $ 110 $ 78 $ 1,044 Accumulated impairment losses (502 ) (303 ) (79 ) (78 ) (962 ) Total — 51 31 — 82 Acquisition 25 — — — 25 Net book value as of September 30, 2018 Goodwill 527 354 110 5 996 Accumulated impairment losses (502 ) (303 ) (79 ) (5 ) (889 ) Total $ 25 $ 51 $ 31 $ — $ 107 |
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 Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 271 $ (133 ) $ 138 $ 256 $ (125 ) $ 131 Trade names 9 (6 ) 3 9 (4 ) 5 Total amortizable other intangible assets 280 (139 ) 141 265 (129 ) 136 Indefinite-lived trade names 24 — 24 24 — 24 Total other intangible assets $ 304 $ (139 ) $ 165 $ 289 $ (129 ) $ 160 |
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: For the year ending December 31, Amount 2018 $ 18 2019 18 2020 18 2021 16 2022 14 2023 and thereafter 71 Total $ 155 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring, Impairment and Other Charges | For the three and nine months ended September 30, 2018 and 2017, the Company recorded the following net restructuring, impairment and other charges: Other Total Three Months Ended Employee Restructuring Restructuring Other September 30, 2018 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ (1 ) $ 1 $ — $ — $ — $ — Book — 1 1 — — 1 Office Products — — — — — — Other 1 (1 ) — — — — Total $ — $ 1 $ 1 $ — $ — $ 1 Other Total Three Months Ended Employee Restructuring Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ — $ 1 $ 1 $ 50 $ — $ 51 Book — 1 1 — 1 2 Office Products — — — — — — Other — — — 5 — 5 Corporate — 2 2 — — 2 Total $ — $ 4 $ 4 $ 55 $ 1 $ 60 Other Total Nine Months Ended Employee Restructuring Restructuring Other September 30, 2018 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 3 $ 8 $ 11 $ (1 ) $ — $ 10 Book 1 3 4 — 1 5 Office Products 1 1 2 — — 2 Other 1 (1 ) — — — — Corporate 1 — 1 — — 1 Total $ 7 $ 11 $ 18 $ (1 ) $ 1 $ 18 Other Total Nine Months Ended Employee Restructuring Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 1 $ 3 $ 4 $ 50 $ 1 $ 55 Book 4 1 5 — 2 7 Office Products 1 — 1 — — 1 Other 1 1 2 5 — 7 Corporate — 17 17 — — 17 Total $ 7 $ 22 $ 29 $ 55 $ 3 $ 87 |
Schedule of Changes in the Restructuring Reserve | The restructuring reserve as of September 30, 2018 and December 31, 2017, and changes during the nine months ended September 30, 2018 were as follows: December 31, Restructuring Cash September 30, 2017 Charges Other Paid 2018 Employee terminations $ 8 $ 6 $ — $ (12 ) $ 2 Multiemployer pension plan withdrawal obligations 16 2 19 (4 ) 33 Other 2 8 — (9 ) 1 Total $ 26 $ 16 $ 19 $ (25 ) $ 36 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of the Company's Debt | The Company’s debt at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Borrowings under the Revolving Credit Facility $ 229 $ 75 Term Loan Facility due September 30, 2022 (a) 270 306 8.75% Senior Secured Notes due October 15, 2023 450 450 Capital lease and other obligations 8 3 Unamortized debt issuance costs (11 ) (12 ) Total debt 946 822 Less: current portion (276 ) (123 ) Long-term debt $ 670 $ 699 (a) The borrowings under the Term Loan Facility are subject to a variable interest rate. As of September 30, 2018 and December 31, 2017, the interest rate was 7.74% and 7.07%, respectively. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of the Company's Equity Activity | The Company’s equity balances and changes were as follows: Total Equity Total Equity 2018 2017 Balance at January 1 $ 248 $ 240 Net (loss) income (7 ) 1 Other comprehensive income 7 28 Share-based compensation 10 10 Issuance of share-based awards, net of withholdings and other (2 ) (1 ) Repurchase of common stock (20 ) — Revenue recognition adjustments 9 — Cash dividends paid (26 ) (25 ) Issuance of common stock — 38 Separation-related adjustments — (5 ) Balance at September 30 $ 219 $ 286 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS as Well as Reconciliation of Basic Shares to Diluted Shares | The following table shows the calculation of basic and diluted EPS, as well as a reconciliation of basic shares to diluted shares: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net (loss) earnings per common share: Basic $ (0.12 ) $ (0.07 ) $ (0.21 ) $ 0.03 Diluted $ (0.12 ) $ (0.07 ) $ (0.21 ) $ 0.03 Dividends declared per common share $ 0.26 $ 0.25 $ 0.78 $ 0.75 Numerator: Net (loss) income $ (4 ) $ (3 ) $ (7 ) $ 1 Denominator: Weighted average number of common shares outstanding 33.2 34.2 34.0 33.5 Dilutive options and awards — — — 0.3 Diluted weighted average number of common shares outstanding 33.2 34.2 34.0 33.8 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Estimated Net Pension (Income) Loss | The components of the estimated net pension (income) loss 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 Qualified Non-Qualified & International Total Qualified Non-Qualified & International Total Interest cost $ 21 $ 1 $ 22 $ 63 $ 3 $ 66 Expected return on plan assets (39 ) — (39 ) (117 ) — (117 ) Amortization of actuarial loss 5 — 5 15 — 15 Net periodic benefit (income) loss $ (13 ) $ 1 $ (12 ) $ (39 ) $ 3 $ (36 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Qualified Non-Qualified & International Total Qualified Non-Qualified & International Total Interest cost $ 22 $ — $ 22 $ 65 $ 2 $ 67 Expected return on plan assets (38 ) — (38 ) (114 ) — (114 ) Amortization of actuarial loss 4 1 5 12 1 13 Net periodic benefit (income) loss $ (12 ) $ 1 $ (11 ) $ (37 ) $ 3 $ (34 ) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss | The following table summarizes accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018 and changes during the nine months ended September 30, 2018. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2017 $ (428 ) $ (48 ) $ (476 ) Other comprehensive loss before reclassifications — (4 ) (4 ) Amounts reclassified from accumulated other comprehensive loss 11 — 11 Reclassification to accumulated deficit (97 ) — (97 ) Net change in accumulated other comprehensive loss (86 ) (4 ) (90 ) Balance at September 30, 2018 $ (514 ) $ (52 ) $ (566 ) The Company adopted ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”) in the first quarter of 2018. As a result of applying this standard in the period of adoption, the Company reclassified $97 million relating to the change in tax rate from accumulated other comprehensive loss to accumulated deficit in the Company’s condensed consolidated balance sheet during the three months ended March 31, 2018. The following table summarizes accumulated other comprehensive loss by component as of December 31, 2016 and September 30, 2017 and changes during the nine months ended September 30, 2017. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2016 $ (462 ) $ (69 ) $ (531 ) Other comprehensive income before reclassifications — 20 20 Amounts reclassified from accumulated other comprehensive loss 8 — 8 Net change in accumulated other comprehensive loss 8 20 28 Balance at September 30, 2017 $ (454 ) $ (49 ) $ (503 ) |
Schedule of Reclassification From Accumulated Other Comprehensive Loss | 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 September 30, September 30, 2018 2017 2018 2017 Amortization of pension plan cost: Net actuarial loss (a) $ 5 $ 5 $ 15 $ 13 Reclassifications before tax 5 5 15 13 Income tax expense 2 2 4 5 Reclassifications, net of tax $ 3 $ 3 $ 11 $ 8 (a) These accumulated other comprehensive income components are included in the calculation of net periodic pension plan (income) expense that is recognized substantially all in investment and other income-net in the condensed consolidated statements of operations (see Note 12, 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 with the condensed consolidated financial statements. Income (Loss) Depreciation Three Months Ended Net from and Capital September 30, 2018 Sales Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 463 $ 1 $ 16 $ 6 Book 282 21 12 7 Office Products 145 15 4 — Total reportable segments 890 37 32 13 Other 125 9 2 1 Corporate — (5 ) — 1 Total operations $ 1,015 $ 41 $ 34 $ 15 Income (Loss) Depreciation Three Months Ended Net from and Capital September 30, 2017 Sales Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 409 $ (41 ) $ 18 $ 6 Book 276 26 14 2 Office Products 116 11 4 1 Total reportable segments 801 (4 ) 36 9 Other 134 5 3 1 Corporate — (19 ) — 5 Total operations $ 935 $ (18 ) $ 39 $ 15 Income (Loss) Depreciation Nine Months Ended Net from Assets of and Capital September 30, 2018 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,291 $ (19 ) $ 795 $ 47 $ 20 Book 797 49 610 39 25 Office Products 422 30 363 11 1 Total reportable segments 2,510 60 1,768 97 46 Other 377 23 102 8 3 Corporate — (30 ) 102 1 3 Total operations $ 2,887 $ 53 $ 1,972 $ 106 $ 52 Income (Loss) Depreciation Nine Months Ended Net from Assets of and Capital September 30, 2017 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,099 $ (51 ) $ 813 $ 52 $ 20 Book 777 53 621 46 12 Office Products 352 32 316 11 3 Total reportable segments 2,228 34 1,750 109 35 Other 376 22 233 8 9 Corporate — (60 ) 90 1 7 Total operations $ 2,604 $ (4 ) $ 2,073 $ 118 $ 51 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Narrative (Detail) $ in Millions | Mar. 28, 2017shares | Oct. 01, 2016Entityshares | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Overview And Basis Of Presentation [Line Items] | ||||||
Percentage of distribution of common shares during spinoff | 80.75% | |||||
Donnelley Financial Solutions | ||||||
Overview And Basis Of Presentation [Line Items] | ||||||
Percentage of distribution of common shares during spinoff | 80.75% | |||||
RRD | ||||||
Overview And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 19.25% | 19.25% | ||||
Ownership percentage in Donnelley Financial solutions by related party | 19.25% | |||||
Number of subsidiary shares sold by parent company | 6,200,000 | |||||
RR Donnelley | ||||||
Overview And Basis Of Presentation [Line Items] | ||||||
Number of entities resulted from spinoff of an entity | Entity | 3 | |||||
Number of share distributed to each stockholder in spinoff transaction in Donnelley Financial solutions by related party | 0.125 | |||||
Number of share distributed to each stockholder in spinoff transaction | 0.125 | |||||
ASU 2017-07 | ||||||
Overview And Basis Of Presentation [Line Items] | ||||||
Reclassification of net pension income from selling, general and administrative expenses to investment and other income | $ | $ 11 | $ 34 | ||||
Reclassification of net pension income upon adoption of accounting standard | $ | $ 46 | $ 45 |
Business Combinations and Dis_2
Business Combinations and Disposition - Narrative (Detail) - USD ($) shares in Millions | Sep. 28, 2018 | Nov. 29, 2017 | Nov. 09, 2017 | Sep. 07, 2017 | Jul. 28, 2017 | Mar. 01, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jul. 02, 2018 | Aug. 21, 2017 | Aug. 17, 2017 |
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 107,000,000 | $ 82,000,000 | $ 107,000,000 | $ 82,000,000 | |||||||||||
Net sales | 1,015,000,000 | $ 935,000,000 | 2,887,000,000 | $ 2,604,000,000 | |||||||||||
Income from operations | 41,000,000 | (18,000,000) | 53,000,000 | (4,000,000) | |||||||||||
Proceeds from sale of business | 45,000,000 | 0 | |||||||||||||
Goodwill impairment charges | 55,000,000 | 55,000,000 | 73,000,000 | ||||||||||||
Acquisition-related expenses | 2,000,000 | 2,000,000 | 4,000,000 | 3,000,000 | |||||||||||
Former magazines, catalogs and retail inserts | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 0 | 0 | |||||||||||||
Goodwill impairment charges | 18,000,000 | 55,000,000 | 73,000,000 | ||||||||||||
Other | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 0 | $ 0 | 0 | 0 | |||||||||||
Net sales | 125,000,000 | 134,000,000 | 377,000,000 | 376,000,000 | |||||||||||
Income from operations | 9,000,000 | 5,000,000 | 23,000,000 | $ 22,000,000 | |||||||||||
Goodwill impairment charges | $ 5,000,000 | $ 5,000,000 | |||||||||||||
Other | Europe | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Proceeds from sale of business | $ 48,000,000 | ||||||||||||||
Net sales | 60,000,000 | 178,000,000 | |||||||||||||
Income from operations | 2,000,000 | 3,000,000 | |||||||||||||
Income tax non-cash provision recorded | $ 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||
Print Logistics | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | 58,000,000 | ||||||||||||||
Goodwill | 25,000,000 | 25,000,000 | $ 25,000,000 | ||||||||||||
Net sales | 80,000,000 | 80,000,000 | |||||||||||||
Income from operations | 1,000,000 | 1,000,000 | |||||||||||||
Clark Group | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | $ 25,000,000 | ||||||||||||||
Goodwill | $ 16,000,000 | 16,000,000 | 16,000,000 | ||||||||||||
Quality Park | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | $ 41,000,000 | ||||||||||||||
Gain on bargain purchase | $ 2,000,000 | 2,000,000 | |||||||||||||
Publishers Press | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | $ 68,000,000 | ||||||||||||||
Goodwill | $ 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
NECI | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 1,000,000 | ||||||||||||||
Purchase price, included in estimated contingent consideration | $ 6,000,000 | ||||||||||||||
CREEL | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 26,000,000 | 26,000,000 | $ 26,000,000 | ||||||||||||
Purchase price, included in estimated contingent consideration | $ 79,000,000 | ||||||||||||||
Fairrington | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | $ 19,000,000 | ||||||||||||||
Goodwill | $ 22,000,000 | 22,000,000 | 22,000,000 | ||||||||||||
Issuance of common stock shares for acquisitions of businesses | 1 | ||||||||||||||
Aggregate purchase price of acquisition | $ 39,000,000 | ||||||||||||||
HudsonYards | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price of acquisition, cash | $ 3,000,000 | ||||||||||||||
Goodwill | $ 2,000,000 | ||||||||||||||
2018 and 2017 Acquisitions | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Tax deductible goodwill | $ 62,000,000 | $ 62,000,000 |
Business Combinations and Dis_3
Business Combinations and Disposition - Summary of Segments and Reporting Units where Acquisitions are Included (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Print Logistics | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Logistics |
Clark Group | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Logistics |
Quality Park | |
Business Acquisition [Line Items] | |
Segment | Office Products |
Reporting Unit | Office Products |
Publishers Press | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Magazines and Catalogs |
NECI | |
Business Acquisition [Line Items] | |
Segment | Office Products |
Reporting Unit | Office Products |
CREEL | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Magazines and Catalogs |
Fairrington | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Logistics |
HudsonYards | |
Business Acquisition [Line Items] | |
Segment | Magazines, Catalogs and Logistics |
Reporting Unit | Magazines and Catalogs |
Business Combinations and Dis_4
Business Combinations and Disposition - Schedule of Purchase Price Allocation for Acquisitions (Detail) - USD ($) $ in Millions | Nov. 09, 2017 | Sep. 30, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | Nov. 29, 2017 | Sep. 07, 2017 | Aug. 17, 2017 | Jul. 28, 2017 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 107 | $ 82 | ||||||
Print Logistics | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 39 | |||||||
Inventories | 0 | |||||||
Prepaid expenses and other current assets | 1 | |||||||
Property, plant and equipment | 8 | |||||||
Other intangible assets | 20 | |||||||
Other noncurrent assets | 0 | |||||||
Goodwill | 25 | $ 25 | ||||||
Accounts payable and accrued liabilities | (35) | |||||||
Deferred taxes - net | 0 | |||||||
Purchase price, net of cash acquired | 58 | |||||||
Less: value of common stock issued | 0 | |||||||
Less: accrued but unpaid contingent consideration | 0 | |||||||
Net cash paid | 58 | |||||||
Clark Group | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 6 | |||||||
Inventories | 0 | |||||||
Prepaid expenses and other current assets | 0 | |||||||
Property, plant and equipment | 0 | |||||||
Other intangible assets | 14 | |||||||
Other noncurrent assets | 0 | |||||||
Goodwill | 16 | $ 16 | ||||||
Accounts payable and accrued liabilities | (8) | |||||||
Deferred taxes - net | (3) | |||||||
Purchase price, net of cash acquired | 25 | |||||||
Less: value of common stock issued | 0 | |||||||
Less: accrued but unpaid contingent consideration | 0 | |||||||
Net cash paid | 25 | |||||||
Publishers Press | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 27 | |||||||
Inventories | 13 | |||||||
Prepaid expenses and other current assets | 1 | |||||||
Property, plant and equipment | 36 | |||||||
Other intangible assets | 0 | |||||||
Other noncurrent assets | 1 | |||||||
Goodwill | 1 | $ 1 | ||||||
Accounts payable and accrued liabilities | (14) | |||||||
Deferred taxes - net | 0 | |||||||
Purchase price, net of cash acquired | 65 | |||||||
Less: value of common stock issued | 0 | |||||||
Less: accrued but unpaid contingent consideration | 0 | |||||||
Net cash paid | 65 | |||||||
Quality Park | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 19 | |||||||
Inventories | 27 | |||||||
Prepaid expenses and other current assets | 1 | |||||||
Property, plant and equipment | 8 | |||||||
Other intangible assets | 1 | |||||||
Other noncurrent assets | 0 | |||||||
Bargain purchase | $ (2) | (2) | ||||||
Accounts payable and accrued liabilities | (11) | |||||||
Deferred taxes - net | (2) | |||||||
Purchase price, net of cash acquired | 41 | |||||||
Less: value of common stock issued | 0 | |||||||
Less: accrued but unpaid contingent consideration | 0 | |||||||
Net cash paid | 41 | |||||||
CREEL | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 12 | |||||||
Inventories | 5 | |||||||
Prepaid expenses and other current assets | 1 | |||||||
Property, plant and equipment | 20 | |||||||
Other intangible assets | 23 | |||||||
Other noncurrent assets | 0 | |||||||
Goodwill | 26 | $ 26 | ||||||
Accounts payable and accrued liabilities | (9) | |||||||
Deferred taxes - net | 0 | |||||||
Purchase price, net of cash acquired | 78 | |||||||
Less: value of common stock issued | 0 | |||||||
Less: accrued but unpaid contingent consideration | 1 | |||||||
Net cash paid | 77 | |||||||
Fairrington | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts Receivable | 6 | |||||||
Inventories | 0 | |||||||
Prepaid expenses and other current assets | 0 | |||||||
Property, plant and equipment | 6 | |||||||
Other intangible assets | 17 | |||||||
Other noncurrent assets | 1 | |||||||
Goodwill | 22 | $ 22 | ||||||
Accounts payable and accrued liabilities | (4) | |||||||
Deferred taxes - net | (9) | |||||||
Purchase price, net of cash acquired | 39 | |||||||
Less: value of common stock issued | 20 | $ 20 | ||||||
Less: accrued but unpaid contingent consideration | 0 | |||||||
Net cash paid | $ 19 |
Business Combinations and Dis_5
Business Combinations and Disposition - Summary of Impairment Charges Related to Reporting Units (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total, Impairment Charges | $ 55 | $ 55 | $ 73 |
Magazines and Catalogs | |||
Segment Reporting Information [Line Items] | |||
Total, Impairment Charges | 28 | 30 | |
Logistics | |||
Segment Reporting Information [Line Items] | |||
Total, Impairment Charges | 22 | 38 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total, Impairment Charges | $ 5 | $ 5 |
Business Combinations and Dis_6
Business Combinations and Disposition - Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three (Detail) - Customer Relationships - Fair Value, Inputs, Level 3 - Fair Value, Measurements, Nonrecurring $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Existing Customer Growth Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | (3.5) |
Attrition Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | 7.5 |
Discount Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | 18 |
Multi-period excess earnings method | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair Value | $ 20 |
Business Combinations and Dis_7
Business Combinations and Disposition - Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Net sales | $ 1,015 | $ 1,059 | $ 2,972 | $ 3,051 |
Net (loss) income | $ (4) | $ (4) | $ (10) | $ 1 |
Net (loss) earnings per common share | ||||
Basic | $ (0.12) | $ (0.12) | $ (0.29) | $ 0.03 |
Diluted | $ (0.12) | $ (0.12) | $ (0.29) | $ 0.03 |
Amortization of purchased intangibles | $ 5 | $ 6 | $ 15 | $ 18 |
Business Combinations and Dis_8
Business Combinations and Disposition - Nonrecurring Pro Forma Adjustments Affecting Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Restructuring, impairment and other charges, pre-tax | $ 0 | $ 0 | $ 0 | $ (1) |
Other pro forma adjustments, pre-tax | 0 | 0 | 0 | 2 |
Income taxes | 0 | 0 | 0 | 3 |
Acquisition-related expenses, pre-tax | 0 | (1) | 0 | (1) |
Inventory fair value adjustments, pre-tax | $ 0 | $ 0 | $ 0 | $ 1 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Companys adjusted accounts upon Adoption of ASC 606 (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Receivables, net | $ 772 | $ 727 | |
Inventories | 244 | 238 | |
Deferred income taxes | 12 | 51 | |
LIABILITIES | |||
Accrued liabilities | 219 | 239 | |
EQUITY (Note 10) | |||
(Accumulated deficit) retained earnings | (18) | $ (90) | |
ASU 2014-09 | |||
ASSETS | |||
Receivables, net | $ 759 | ||
Inventories | 206 | ||
Deferred income taxes | 48 | ||
LIABILITIES | |||
Accrued liabilities | 227 | ||
EQUITY (Note 10) | |||
(Accumulated deficit) retained earnings | (81) | ||
ASU 2014-09 | Adjustments Adoption of ASC 606 | |||
ASSETS | |||
Receivables, net | (40) | 32 | |
Inventories | 39 | (32) | |
Deferred income taxes | 3 | (3) | |
LIABILITIES | |||
Accrued liabilities | 13 | (12) | |
EQUITY (Note 10) | |||
(Accumulated deficit) retained earnings | $ (10) | $ 9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Payment terms on invoiced amounts description | between 30 to 120 days | |||
Customer-Supplied Paper | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized | $ 0 | $ 0 | ||
ASU 2014-09 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract acquisition costs capitalized | $ 0 | $ 36,000,000 | ||
Amortization expense | 2,000,000 | 8,000,000 | ||
Impairment loss amount | 0 | 0 | ||
ASU 2014-09 | Adjustments Adoption of ASC 606 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Amount of total assets decreased | 3,000,000 | |||
Amount of total liabilities decreased | 12,000,000 | |||
Amount of total equity increased | 9,000,000 | |||
Equity adjustment, net | $ 3,000,000 | $ 3,000,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Comparison Between Select Accounts from Reported Statements to Proforma Amounts in Effect of Previous Guidance - Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Receivables, net | $ 772 | $ 727 | |
Inventories | 244 | 238 | |
Deferred income taxes | 12 | 51 | |
LIABILITIES | |||
Accounts payable | 351 | 406 | |
Accrued liabilities | 219 | 239 | |
EQUITY (Note 10) | |||
Accumulated deficit | (18) | $ (90) | |
ASU 2014-09 | |||
ASSETS | |||
Receivables, net | $ 759 | ||
Inventories | 206 | ||
Deferred income taxes | 48 | ||
LIABILITIES | |||
Accrued liabilities | 227 | ||
EQUITY (Note 10) | |||
Accumulated deficit | (81) | ||
ASU 2014-09 | Adjustments Adoption of ASC 606 | |||
ASSETS | |||
Receivables, net | (40) | 32 | |
Inventories | 39 | (32) | |
Deferred income taxes | 3 | (3) | |
LIABILITIES | |||
Accounts payable | (1) | ||
Accrued liabilities | 13 | (12) | |
EQUITY (Note 10) | |||
Accumulated deficit | (10) | $ 9 | |
ASU 2014-09 | Pro Forma as if the Previous Standard were in Effect | |||
ASSETS | |||
Receivables, net | 732 | ||
Inventories | 283 | ||
Deferred income taxes | 15 | ||
LIABILITIES | |||
Accounts payable | 350 | ||
Accrued liabilities | 232 | ||
EQUITY (Note 10) | |||
Accumulated deficit | $ (28) |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Comparison Between Select Accounts from Reported Statements to Proforma Amounts in Effect of Previous Guidance - Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | $ 1,015 | $ 935 | $ 2,887 | $ 2,604 |
Cost of sales | 862 | 2,468 | ||
Income tax expense | $ 35 | $ (23) | $ 36 | $ (23) |
Net (loss) earnings per common share (Note 11) | ||||
Basic net (loss) per share | $ (0.12) | $ (0.07) | $ (0.21) | $ 0.03 |
Diluted net (loss) per share | $ (0.12) | $ (0.07) | $ (0.21) | $ 0.03 |
ASU 2014-09 | Adjustments from Adoption of ASC 606 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | $ (11) | $ (5) | ||
Cost of sales | (8) | (4) | ||
Income tax expense | $ (1) | $ 0 | ||
Net (loss) earnings per common share (Note 11) | ||||
Basic net (loss) per share | $ (0.06) | $ (0.03) | ||
Diluted net (loss) per share | $ (0.06) | $ (0.03) | ||
ASU 2014-09 | Pro Forma as if the Previous Standard were in Effect | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | $ 1,004 | $ 2,882 | ||
Cost of sales | 854 | 2,464 | ||
Income tax expense | $ 34 | $ 36 | ||
Net (loss) earnings per common share (Note 11) | ||||
Basic net (loss) per share | $ (0.18) | $ (0.24) | ||
Diluted net (loss) per share | $ (0.18) | $ (0.24) |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Disaggregated Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 1,015 | $ 935 | $ 2,887 | $ 2,604 |
Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 282 | 797 | ||
Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 452 | 1,416 | ||
Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 397 | 1,252 | ||
Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 55 | 164 | ||
Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 145 | 422 | ||
Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 26 | 87 | ||
Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 21 | 73 | ||
Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 5 | 14 | ||
Major Products/Service Lines | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,015 | 2,887 | ||
Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 110 | 165 | ||
Magazines, Catalogs and Logistics | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 353 | 1,126 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 353 | 1,126 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Major Products/Service Lines | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 463 | 1,291 | ||
Magazines, Catalogs and Logistics | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 110 | 165 | ||
Office Products | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 145 | 422 | ||
Office Products | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Major Products/Service Lines | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 145 | 422 | ||
Office Products | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 282 | 797 | ||
Book | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Major Products/Service Lines | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 282 | 797 | ||
Book | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 99 | 290 | ||
Other | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 44 | 126 | ||
Other | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 55 | 164 | ||
Other | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 26 | 87 | ||
Other | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 21 | 73 | ||
Other | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 5 | 14 | ||
Other | Major Products/Service Lines | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 125 | 377 | ||
Other | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Products and Services Transferred at a Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 824 | 2,486 | ||
Products and Services Transferred at a Point in Time | Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 329 | 1,039 | ||
Products and Services Transferred at a Point in Time | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 145 | 422 | ||
Products and Services Transferred at a Point in Time | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 245 | 702 | ||
Products and Services Transferred at a Point in Time | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 105 | 323 | ||
Products and Services Transferred Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 191 | 401 | ||
Products and Services Transferred Over Time | Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 134 | 252 | ||
Products and Services Transferred Over Time | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Products and Services Transferred Over Time | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 37 | 95 | ||
Products and Services Transferred Over Time | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 20 | 54 | ||
Timing of Revenue Recognition | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,015 | 2,887 | ||
Timing of Revenue Recognition | Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 463 | 1,291 | ||
Timing of Revenue Recognition | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 145 | 422 | ||
Timing of Revenue Recognition | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 282 | 797 | ||
Timing of Revenue Recognition | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 125 | $ 377 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Information About Receivables, Contract Assets, Contract Liabilities from Contract with Customers (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Trade receivables | $ 585 | $ 647 |
Short-term contract assets | 38 | 31 |
Long-term contract assets | 33 | 36 |
Short-term contract liabilities | $ 18 | $ 21 |
Revenue Recognition - Schedul_5
Revenue Recognition - Schedule of Significant Changes in the Contract Assets and Contract Liabilities (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Contract Assets | |
Payment of contract acquisition costs | $ 5 |
Additions to unbilled accounts receivable | 37 |
Amortization of contract acquisition costs | (8) |
Unbilled accounts receivable recognized as receivables | (30) |
Contract Liabilities | |
Revenue recognized that was included in contract liabilities as of January 1, 2018 | (18) |
Increases due to cash received | $ 15 |
Revenue Recognition - Schedul_6
Revenue Recognition - Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue From Contract With Customer [Abstract] | ||
Balance, beginning of year | $ 11 | |
Provisions charged to expense | 5 | $ 3 |
Write-offs and other | (2) | |
Balance, end of period | $ 14 |
Inventories - Components of the
Inventories - Components of the Company's Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 142 | $ 114 |
Work in process | 63 | 69 |
Finished goods | 92 | 112 |
Last in, first out ("LIFO") reserve | (53) | (57) |
Total | $ 244 | $ 238 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of the Company's Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Land | $ 43 | $ 45 |
Buildings | 709 | 739 |
Machinery and equipment | 3,765 | 4,012 |
Property, plant and equipment, gross | 4,517 | 4,796 |
Less: Accumulated depreciation | (4,003) | (4,220) |
Total | $ 514 | $ 576 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation expense | $ 27 | $ 34 | $ 86 | $ 102 | |
Prepaid expenses and other current assets | |||||
Property Plant And Equipment [Line Items] | |||||
Net book value of assets held for sale | $ 4 | $ 4 | $ 7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2018 | |
Goodwill [Line Items] | ||
Goodwill gross | $ 1,044 | $ 996 |
Accumulated impairment losses | (962) | (889) |
Goodwill | 82 | 107 |
Acquisition | 25 | |
Magazines, Catalogs and Logistics | ||
Goodwill [Line Items] | ||
Goodwill gross | 502 | 527 |
Accumulated impairment losses | (502) | (502) |
Goodwill | 0 | 25 |
Acquisition | 25 | |
Book | ||
Goodwill [Line Items] | ||
Goodwill gross | 354 | 354 |
Accumulated impairment losses | (303) | (303) |
Goodwill | 51 | 51 |
Acquisition | 0 | |
Office Products | ||
Goodwill [Line Items] | ||
Goodwill gross | 110 | 110 |
Accumulated impairment losses | (79) | (79) |
Goodwill | 31 | 31 |
Acquisition | 0 | |
Other | ||
Goodwill [Line Items] | ||
Goodwill gross | 78 | 5 |
Accumulated impairment losses | (78) | (5) |
Goodwill | 0 | $ 0 |
Acquisition | $ 0 |
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 |
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, amortizable intangible assets | $ 280 | $ 265 |
Accumulated Amortization, amortizable intangible assets | (139) | (129) |
Net Book Value, amortizable intangible assets | 141 | 136 |
Gross Carrying Amount, total other intangible assets | 304 | 289 |
Net Book Value, total other intangible assets | 165 | 160 |
Trade Names | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Net Book Value, indefinite-lived trade names | 24 | 24 |
Customer Relationships | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, amortizable intangible assets | 271 | 256 |
Accumulated Amortization, amortizable intangible assets | (133) | (125) |
Net Book Value, amortizable intangible assets | 138 | 131 |
Trade Names | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, amortizable intangible assets | 9 | 9 |
Accumulated Amortization, amortizable intangible assets | (6) | (4) |
Net Book Value, amortizable intangible assets | $ 3 | $ 5 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Other Intangible Assets [Line Items] | ||||
Amortization expense for other intangible assets | $ 5 | $ 4 | $ 14 | $ 12 |
Print Logistics Acquisition | Customer Relationships | ||||
Schedule Of Other Intangible Assets [Line Items] | ||||
Total additions | $ 20 | |||
Amortization period | 10 years |
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 | $ 18 |
2,019 | 18 |
2,020 | 18 |
2,021 | 16 |
2,022 | 14 |
2023 and thereafter | 71 |
Total | $ 155 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges - Schedule of Net Restructuring, Impairment and Other Charges (Detail) - 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 | $ 0 | $ 7 | $ 7 |
Other Restructuring Charges | 1 | 4 | 11 | 22 |
Total Restructuring Charges | 1 | 4 | 18 | 29 |
Impairment | 0 | 55 | (1) | 55 |
Other Charges | 0 | 1 | 1 | 3 |
Total | 1 | 60 | 18 | 87 |
Total Operating Segments | Magazines, Catalogs and Logistics | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | (1) | 0 | 3 | 1 |
Other Restructuring Charges | 1 | 1 | 8 | 3 |
Total Restructuring Charges | 0 | 1 | 11 | 4 |
Impairment | 0 | 50 | (1) | 50 |
Other Charges | 0 | 0 | 0 | 1 |
Total | 0 | 51 | 10 | 55 |
Total Operating Segments | Book | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0 | 0 | 1 | 4 |
Other Restructuring Charges | 1 | 1 | 3 | 1 |
Total Restructuring Charges | 1 | 1 | 4 | 5 |
Impairment | 0 | 0 | 0 | 0 |
Other Charges | 0 | 1 | 1 | 2 |
Total | 1 | 2 | 5 | 7 |
Total Operating Segments | Office Products | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0 | 0 | 1 | 1 |
Other Restructuring Charges | 0 | 0 | 1 | 0 |
Total Restructuring Charges | 0 | 0 | 2 | 1 |
Impairment | 0 | 0 | 0 | 0 |
Other Charges | 0 | 0 | 0 | 0 |
Total | 0 | 0 | 2 | 1 |
Total Operating Segments | Other | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 1 | 0 | 1 | 1 |
Other Restructuring Charges | (1) | 0 | (1) | 1 |
Total Restructuring Charges | 0 | 0 | 0 | 2 |
Impairment | 0 | 5 | 0 | 5 |
Other Charges | 0 | 0 | 0 | 0 |
Total | $ 0 | 5 | 0 | 7 |
Corporate | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0 | 1 | 0 | |
Other Restructuring Charges | 2 | 0 | 17 | |
Total Restructuring Charges | 2 | 1 | 17 | |
Impairment | 0 | 0 | 0 | |
Other Charges | 0 | 0 | 0 | |
Total | $ 2 | $ 1 | $ 17 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Charges - Narrative (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Employee | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)EmployeeFacility | Sep. 30, 2017USD ($)EmployeeFacility | Dec. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Other restructuring charges, net | $ 1 | $ 4 | $ 11 | $ 22 | |
Employee-related termination costs | 0 | 0 | $ 7 | $ 7 | |
Number of employees used to determine employee termination costs | Employee | 329 | 516 | |||
Goodwill impairment non-cash charge | $ 55 | $ 55 | $ 73 | ||
Magazines, Catalogs and Logistics | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Number of facilities closed | Facility | 1 | ||||
Book | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Number of facilities closed | Facility | 1 | ||||
Maximum | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Employee-related termination costs | $ 1 | ||||
Termination One | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Number of employees who were terminated as of date | Employee | 275 | 275 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other Charges - Other Charges - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||||
Accrued liabilities | $ 219 | $ 219 | $ 239 | ||
Other noncurrent liabilities | 65 | 65 | $ 68 | ||
Other Charges | 0 | $ 1 | 1 | $ 3 | |
Multiemployer pension plan withdrawal obligations | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accrued liabilities | 3 | 3 | |||
Other noncurrent liabilities | $ 19 | 19 | |||
Other Charges | $ 1 | $ 1 | $ 3 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | $ 26 |
Restructuring Charges | 16 |
Other | 19 |
Cash Paid | (25) |
Balance at the end | 36 |
Employee terminations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 8 |
Restructuring Charges | 6 |
Other | 0 |
Cash Paid | (12) |
Balance at the end | 2 |
Other | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 2 |
Restructuring Charges | 8 |
Other | 0 |
Cash Paid | (9) |
Balance at the end | 1 |
Multiemployer pension plan withdrawal obligations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 16 |
Restructuring Charges | 2 |
Other | 19 |
Cash Paid | (4) |
Balance at the end | $ 33 |
Restructuring, Impairment and_7
Restructuring, Impairment and Other Charges - Restructuring Reserve - Narrative (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost And Reserve [Line Items] | |||
Current restructuring reserve | $ 9 | ||
Noncurrent restructuring reserve | 27 | ||
Restructuring Reserve | 36 | $ 26 | |
Restructuring Liabilities | |||
Restructuring Cost And Reserve [Line Items] | |||
Current restructuring reserve | $ 3 | ||
Noncurrent restructuring reserve | 16 | ||
Multiemployer pension plan withdrawal obligations | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Reserve | $ 33 | $ 16 | |
Multiemployer pension plan withdrawal obligations | Restructuring Liabilities | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Reserve | $ 19 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | Sep. 30, 2018Facility |
Commitments And Contingencies Disclosure [Abstract] | |
Number of sites cited as potentially responsible party | 9 |
Number of previously and currently owned sites with potential remediation obligations | 3 |
Debt - Schedule of the Company'
Debt - Schedule of the Company's Debt Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Capital lease and other obligations | $ 8 | $ 3 | ||
Unamortized debt issuance costs | (11) | (12) | ||
Total debt | 946 | 822 | ||
Less: current portion | (276) | (123) | ||
Long-term debt | 670 | 699 | ||
Borrowings under the Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term Loan Facility | 229 | 75 | ||
Term Loan Facility due September 30, 2022 | ||||
Debt Instrument [Line Items] | ||||
Term Loan Facility | [1] | 270 | 306 | |
8.75% Senior Secured Notes due October 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior Secured Notes | $ 450 | $ 450 | $ 450 | |
[1] | The borrowings under the Term Loan Facility are subject to a variable interest rate. As of September 30, 2018 and December 31, 2017, the interest rate was 7.74% and 7.07%, respectively. |
Debt - Schedule of the Compan_2
Debt - Schedule of the Company's Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Term Loan Facility due September 30, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Sep. 30, 2022 | |
Debt instrument, variable interest rate | 7.74% | 7.07% |
8.75% Senior Secured Notes due October 15, 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 8.75% | |
Debt instrument, maturity date | Oct. 15, 2023 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) | Nov. 17, 2017 | Nov. 16, 2017 | Feb. 02, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||||||||
Amount of difference between fair value and book value | $ 10,000,000 | $ 10,000,000 | $ 20,000,000 | |||||||
Weighted average interest rate on borrowings | 5.09% | |||||||||
Net interest expense | 21,000,000 | $ 19,000,000 | $ 59,000,000 | $ 52,000,000 | ||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowings | 229,000,000 | 229,000,000 | 75,000,000 | |||||||
Credit Agreements | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Allowable annual dividend payment under credit agreement | 50,000,000 | 50,000,000 | ||||||||
Credit Agreements | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, principal amount | $ 400,000,000 | |||||||||
Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Secured Notes | 450,000,000 | $ 450,000,000 | 450,000,000 | 450,000,000 | ||||||
Debt instrument, maturity date | Oct. 15, 2023 | |||||||||
Term Loan Facility due September 30, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maturity date | Sep. 30, 2022 | |||||||||
Amortization payments paid in advance | $ 50,000,000 | |||||||||
Credit facility borrowings | [1] | $ 270,000,000 | $ 270,000,000 | $ 306,000,000 | ||||||
Term Loan Facility due September 30, 2022 | Credit Agreements | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, principal amount | $ 375,000,000 | |||||||||
LIBOR floor rate | 0.75% | 1.00% | ||||||||
LIBOR reduced floor rate | 0.25% | |||||||||
Debt instrument, frequency of periodic interest payment | quarterly | quarterly | ||||||||
Debt instrument, maturity date | Sep. 30, 2022 | Sep. 30, 2022 | ||||||||
Extinguishment of debt | 65,000,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | 3,000,000 | |||||||||
Proceeds from issuance of long-term debt | $ 65,000,000 | |||||||||
Term Loan Facility due September 30, 2022 | Credit Agreements | Quarterly Installment for First Eight Quarters | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, amortize in quarterly installment | $ 13,000,000 | $ 13,000,000 | ||||||||
Term Loan Facility due September 30, 2022 | Credit Agreements | Quarterly Installment for Subsequent Quarters | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, amortize in quarterly installment | $ 11,000,000 | $ 11,000,000 | ||||||||
Term Loan Facility due September 30, 2022 | Credit Agreements | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, applicable margin rate | 4.50% | 5.00% | ||||||||
Term Loan Facility due September 30, 2022 | Credit Agreements | LIBOR Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, applicable margin rate | 5.50% | 6.00% | ||||||||
Debt instrument, reduce in interest rate | 0.50% | |||||||||
[1] | The borrowings under the Term Loan Facility are subject to a variable interest rate. As of September 30, 2018 and December 31, 2017, the interest rate was 7.74% and 7.07%, respectively. |
Equity - Schedule of the Compan
Equity - Schedule of the Company's Equity Activity (Detail) - USD ($) $ in Millions | May 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Equity [Abstract] | |||||
Balance | $ 248 | $ 240 | |||
Net (loss) income | $ (4) | $ (3) | (7) | 1 | |
Other comprehensive income | 8 | 5 | 7 | 28 | |
Share-based compensation | 10 | 10 | |||
Issuance of share-based awards, net of withholdings and other | (2) | (1) | |||
Repurchase of common stock | $ (20) | (20) | 0 | ||
Revenue recognition adjustments | 9 | 0 | |||
Cash dividends paid | (26) | (25) | |||
Issuance of common stock | 0 | 38 | |||
Separation-related adjustments | 0 | (5) | |||
Balance | $ 219 | $ 286 | $ 219 | $ 286 |
Equity - Narrative (Detail)
Equity - Narrative (Detail) - USD ($) $ in Millions | May 31, 2018 | Jul. 28, 2017 | Mar. 28, 2017 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Equity [Line Items] | |||||||
Repurchase of common stock, shares | 1,600,000 | 0 | 0 | ||||
Total repurchase cost | $ 20 | $ 20 | $ 0 | ||||
Revenue recognition adjustments | 9 | 0 | |||||
Issuance of common stock, value | 0 | $ 38 | |||||
Over-allotment Option | |||||||
Equity [Line Items] | |||||||
Issuance of common stock, shares | 900,000 | ||||||
Issuance of common stock, value | $ 18 | ||||||
Fairrington | |||||||
Equity [Line Items] | |||||||
Issuance of common stock shares for acquisitions of businesses | 1,000,000 | ||||||
Issuance of common stock value for acquisitions of businesses | $ 20 | $ 20 | |||||
ASU 2014-09 | |||||||
Equity [Line Items] | |||||||
Revenue recognition adjustments | $ 9 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Detail) - USD ($) $ in Millions | May 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Earnings Per Share [Abstract] | ||||
Repurchase of common stock, shares | 1,600,000 | 0 | 0 | |
Total repurchase cost | $ 20 | $ 20 | $ 0 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted EPS as Well as Reconciliation of Basic Shares to Diluted Shares (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 | |
Net (loss) earnings per common share: | ||||
Basic | $ (0.12) | $ (0.07) | $ (0.21) | $ 0.03 |
Diluted | (0.12) | (0.07) | (0.21) | 0.03 |
Dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.78 | $ 0.75 |
Numerator: | ||||
Net (loss) income | $ (4) | $ (3) | $ (7) | $ 1 |
Denominator: | ||||
Weighted average number of common shares outstanding | 33.2 | 34.2 | 34 | 33.5 |
Dilutive options and awards | 0 | 0 | 0 | 0.3 |
Diluted weighted average number of common shares outstanding | 33.2 | 34.2 | 34 | 33.8 |
Retirement Plans - Components o
Retirement Plans - Components of Estimated Net Pension (Income) Loss (Detail) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 22 | $ 22 | $ 66 | $ 67 |
Expected return on plan assets | (39) | (38) | (117) | (114) |
Amortization of actuarial loss | 5 | 5 | 15 | 13 |
Net periodic benefit (income) loss | (12) | (11) | (36) | (34) |
Qualified | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 21 | 22 | 63 | 65 |
Expected return on plan assets | (39) | (38) | (117) | (114) |
Amortization of actuarial loss | 5 | 4 | 15 | 12 |
Net periodic benefit (income) loss | (13) | (12) | (39) | (37) |
Non-Qualified & International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 0 | 3 | 2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 1 | 0 | 1 |
Net periodic benefit (income) loss | $ 1 | $ 1 | $ 3 | $ 3 |
Defined Contribution Plan, Sponsor Location [Extensible List] | us-gaap:ForeignPlanMember | us-gaap:ForeignPlanMember | us-gaap:ForeignPlanMember | us-gaap:ForeignPlanMember |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 28, 2018 | |
Income Tax [Line Items] | |||
Federal statutory rate | 21.00% | 35.00% | |
Other | Europe | |||
Income Tax [Line Items] | |||
Income tax non-cash provision recorded | $ 25 | $ 25 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | $ 248 | $ 240 |
Balance | 219 | 286 |
Pension Plan Cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (428) | (462) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 11 | 8 |
Reclassification to accumulated deficit | (97) | |
Net change in accumulated other comprehensive loss | (86) | 8 |
Balance | (514) | (454) |
Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (48) | (69) |
Other comprehensive income (loss) before reclassifications | (4) | 20 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Reclassification to accumulated deficit | 0 | |
Net change in accumulated other comprehensive loss | (4) | 20 |
Balance | (52) | (49) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (476) | (531) |
Other comprehensive income (loss) before reclassifications | (4) | 20 |
Amounts reclassified from accumulated other comprehensive loss | 11 | 8 |
Reclassification to accumulated deficit | (97) | |
Net change in accumulated other comprehensive loss | (90) | 28 |
Balance | $ (566) | $ (503) |
Comprehensive Income - Addition
Comprehensive Income - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
ASU 2018-02 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Cummulative effect on equity or net asset upon adoption of accounting standard | $ 97 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Reclassification From Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amortization of Pension Plan Cost: Net Actuarial Loss | ||||
Reclassification from Accumulated Other Comprehensive Loss | ||||
Reclassifications before tax | $ 5 | $ 5 | $ 15 | $ 13 |
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification from Accumulated Other Comprehensive Loss | ||||
Reclassifications before tax | 5 | 5 | 15 | 13 |
Income tax expense | 2 | 2 | 4 | 5 |
Reclassifications, net of tax | $ 3 | $ 3 | $ 11 | $ 8 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 9 Months Ended |
Sep. 30, 2018SegmentCategory | |
Magazines, Catalogs and Logistics | |
Segment Reporting Information [Line Items] | |
Number of reporting units | Segment | 2 |
Office Products | |
Segment Reporting Information [Line Items] | |
Number of core product categories | Category | 5 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 1,015 | $ 935 | $ 2,887 | $ 2,604 |
Income (Loss) from Operations | 41 | (18) | 53 | (4) |
Assets of Operations | 1,972 | 2,073 | 1,972 | 2,073 |
Depreciation and Amortization | 34 | 39 | 106 | 118 |
Capital Expenditures | 15 | 15 | 52 | 51 |
Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 890 | 801 | 2,510 | 2,228 |
Income (Loss) from Operations | 37 | (4) | 60 | 34 |
Assets of Operations | 1,768 | 1,750 | 1,768 | 1,750 |
Depreciation and Amortization | 32 | 36 | 97 | 109 |
Capital Expenditures | 13 | 9 | 46 | 35 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (5) | (19) | (30) | (60) |
Assets of Operations | 102 | 90 | 102 | 90 |
Depreciation and Amortization | 0 | 0 | 1 | 1 |
Capital Expenditures | 1 | 5 | 3 | 7 |
Magazines, Catalogs and Logistics | Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 463 | 409 | 1,291 | 1,099 |
Income (Loss) from Operations | 1 | (41) | (19) | (51) |
Assets of Operations | 795 | 813 | 795 | 813 |
Depreciation and Amortization | 16 | 18 | 47 | 52 |
Capital Expenditures | 6 | 6 | 20 | 20 |
Book | Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 282 | 276 | 797 | 777 |
Income (Loss) from Operations | 21 | 26 | 49 | 53 |
Assets of Operations | 610 | 621 | 610 | 621 |
Depreciation and Amortization | 12 | 14 | 39 | 46 |
Capital Expenditures | 7 | 2 | 25 | 12 |
Office Products | Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 145 | 116 | 422 | 352 |
Income (Loss) from Operations | 15 | 11 | 30 | 32 |
Assets of Operations | 363 | 316 | 363 | 316 |
Depreciation and Amortization | 4 | 4 | 11 | 11 |
Capital Expenditures | 0 | 1 | 1 | 3 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 125 | 134 | 377 | 376 |
Income (Loss) from Operations | 9 | 5 | 23 | 22 |
Assets of Operations | 102 | 233 | 102 | 233 |
Depreciation and Amortization | 2 | 3 | 8 | 8 |
Capital Expenditures | $ 1 | $ 1 | $ 3 | $ 9 |
Related Parties - Narrative (De
Related Parties - Narrative (Detail) - USD ($) shares in Millions, $ in Millions | Mar. 28, 2017 | Mar. 31, 2017 |
RRD | Principal Owner | ||
Related Party Transaction [Line Items] | ||
Number of common stock shares sold | 6.2 | |
Ownership percentage | 19.25% | |
Freight, logistics and premedia services purchased | $ 51 | |
RRD's subsidiaries | Subsidiary of Common Parent | ||
Related Party Transaction [Line Items] | ||
Net revenues from related party sales | $ 32 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Detail) - Subsequent Event - Merger Agreement | Oct. 30, 2018$ / shares |
Maximum | |
Subsequent Event [Line Items] | |
Dividends payable per share | $ 0.26 |
Class A Common Stock | |
Subsequent Event [Line Items] | |
Business combination, common stock conversion ratio | 0.625 |