Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RRD | |
Entity Registrant Name | RR Donnelley & Sons Co | |
Entity Central Index Key | 29,669 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 70.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 225.8 | $ 317.5 |
Receivables, less allowances for doubtful accounts of $33.0 in 2017 (2016 - $35.9) | 1,382.9 | 1,331.3 |
Inventories (Note 4) | 457.1 | 386.8 |
Prepaid expenses and other current assets | 152.8 | 136.7 |
Investment in LSC and Donnelley Financial (Note 2) | 328.7 | |
Total current assets | 2,218.6 | 2,501 |
Property, plant and equipment-net (Note 5) | 624.6 | 650.3 |
Goodwill (Note 6) | 587.6 | 602 |
Other intangible assets-net (Note 6) | 150.5 | 171.9 |
Deferred income taxes | 123.2 | 108.9 |
Other noncurrent assets | 252.2 | 234.7 |
Total assets | 3,956.7 | 4,268.8 |
LIABILITIES | ||
Accounts payable | 996.5 | 985.3 |
Accrued liabilities | 463.9 | 541.7 |
Short-term and current portion of long-term debt (Note 15) | 17.9 | 8.2 |
Total current liabilities | 1,478.3 | 1,535.2 |
Long-term debt (Note 15) | 2,232.2 | 2,379.2 |
Pension liabilities | 103.2 | 119.4 |
Other postretirement benefits plan liabilities | 130.2 | 134.1 |
Other noncurrent liabilities | 175.8 | 193.1 |
Total liabilities | 4,119.7 | 4,361 |
Commitments and Contingencies (Note 14) | ||
RRD stockholders' equity | ||
Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None | ||
Common stock, $0.01 par value Authorized: 165.0 shares; Issued: 89.0 shares in 2017 and 2016 | 0.9 | 0.9 |
Additional paid-in-capital | 3,450.7 | 3,468.5 |
Accumulated deficit | (2,160.6) | (2,155.4) |
Accumulated other comprehensive loss | (126.5) | (55.7) |
Treasury stock, at cost, 19.0 shares in 2017 (2016 - 19.1 shares) | (1,341.4) | (1,364) |
Total RRD stockholders' equity | (176.9) | (105.7) |
Noncontrolling interests | 13.9 | 13.5 |
Total equity | (163) | (92.2) |
Total liabilities and equity | $ 3,956.7 | $ 4,268.8 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 33 | $ 35.9 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 165,000,000 | 165,000,000 |
Common stock, Issued | 89,000,000 | 89,000,000 |
Treasury stock, shares | 19,000,000 | 19,100,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Products net sales | $ 1,322 | $ 1,327.8 | $ 3,830.9 | $ 3,772.5 |
Services net sales | 412.9 | 397.8 | 1,182.9 | 1,201.6 |
Total net sales | 1,734.9 | 1,725.6 | 5,013.8 | 4,974.1 |
Products cost of sales (exclusive of depreciation and amortization) | 1,064.1 | 1,030.7 | 3,065.7 | 2,958.1 |
Services cost of sales (exclusive of depreciation and amortization) | 346.4 | 330.7 | 992.8 | 1,002.9 |
Total cost of sales | 1,410.5 | 1,361.4 | 4,058.5 | 3,961 |
Products gross profit | 257.9 | 297.1 | 765.2 | 814.4 |
Services gross profit | 66.5 | 67.1 | 190.1 | 198.7 |
Total gross profit | 324.4 | 364.2 | 955.3 | 1,013.1 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 207.7 | 218.1 | 643.6 | 681 |
Restructuring, impairment and other charges-net (Note 7) | 33.8 | 10.8 | 46.7 | 24.3 |
Depreciation and amortization | 47 | 51 | 143.1 | 153.5 |
Other operating expense (income) | 0.3 | (12) | ||
Income from operations | 35.9 | 84 | 121.9 | 166.3 |
Interest expense-net | 43.5 | 48.8 | 137.3 | 150.6 |
Investment and other income -net | (2.8) | (1) | (47.2) | (0.4) |
Loss on debt extinguishments | 6.5 | 20.1 | 85.3 | |
(Loss) earnings before income taxes | (11.3) | 36.2 | 11.7 | 16.1 |
Income tax (benefit) expense | (3.5) | 13.9 | (7.4) | 12.9 |
Net (loss) earnings from continuing operations | (7.8) | 22.3 | 19.1 | 3.2 |
(Loss) income from discontinued operations, net of tax (Note 2) | (29.1) | 15.8 | ||
Net (loss) earnings | (7.8) | (6.8) | 19.1 | 19 |
Less: Income attributable to noncontrolling interests | 0.2 | 0.3 | 0.7 | 0.8 |
Net (loss) earnings attributable to RRD common stockholders | $ (8) | $ (7.1) | $ 18.4 | $ 18.2 |
Basic net (loss) earnings per share attributable to RRD common stockholders (Note 11): | ||||
Continuing operations | $ (0.11) | $ 0.31 | $ 0.26 | $ 0.03 |
Discontinued operations | (0.41) | 0.23 | ||
Net (loss) earnings attributable to RRD stockholders | (0.11) | (0.10) | 0.26 | 0.26 |
Diluted net (loss) earnings per share attributable to RRD common stockholders (Note 11): | ||||
Continuing operations | (0.11) | 0.31 | 0.26 | 0.03 |
Discontinued operations | (0.41) | 0.23 | ||
Net (loss) earnings attributable to RRD | (0.11) | (0.10) | 0.26 | 0.26 |
Dividends declared per common share | $ 0.14 | $ 0.78 | $ 0.42 | $ 2.34 |
Weighted average number of common shares outstanding: | ||||
Basic | 70.2 | 70 | 70.1 | 70 |
Diluted | 70.2 | 70.5 | 70.3 | 70.5 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) earnings | $ (7.8) | $ (6.8) | $ 19.1 | $ 19 |
Other comprehensive income (loss), net of tax (Note 12): | ||||
Translation adjustments | 17.7 | (4.4) | 46.8 | (9) |
Adjustment for available-for-sale securities | (1.8) | (119.3) | ||
Adjustment for net periodic pension and postretirement benefits plan cost | 0.7 | (19.4) | 2.1 | (13.3) |
Other comprehensive income (loss) | 16.6 | (23.8) | (70.4) | (22.3) |
Comprehensive income (loss) | 8.8 | (30.6) | (51.3) | (3.3) |
Less: comprehensive income attributable to noncontrolling interests | 0.3 | 0.3 | 1.1 | 1 |
Comprehensive income (loss) attributable to RRD common stockholders | $ 8.5 | $ (30.9) | $ (52.4) | $ (4.3) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 19.1 | $ 19 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Impairment charges - net | 21.8 | 0.8 |
Depreciation and amortization | 143.1 | 312.5 |
Provision for doubtful accounts receivable | 1.7 | 20.4 |
Share-based compensation | 6.4 | 13.4 |
Deferred income taxes | (10.1) | (33.5) |
Changes in uncertain tax positions | 0.7 | (0.4) |
Gain on investments and other assets - net | (2.8) | (13) |
Realized gain on disposition of available-for-sale securities - net | (42.4) | |
Loss on debt extinguishments | 20.1 | 85.3 |
Net pension and other postretirement benefits plan income | (11) | (55.1) |
Net loss on pension and other postretirement benefits plan settlements and curtailments (Note 8) | 78.8 | |
Other | 14.7 | 9.6 |
Changes in operating assets and liabilities - net of dispositions and acquisitions: | ||
Accounts receivable - net | (26.3) | (122.4) |
Inventories | (62.5) | (60) |
Prepaid expenses and other current assets | (6.3) | (9.2) |
Accounts payable | (18.9) | (160.8) |
Income taxes payable and receivable | (11.4) | (35.6) |
Accrued liabilities and other | (36.1) | (23.4) |
Pension and other postretirement benefits plan contributions | (12.4) | (18.6) |
Net cash (used in) provided by operating activities | (12.6) | 7.8 |
INVESTING ACTIVITIES | ||
Capital expenditures | (77.2) | (147.9) |
Acquisitions of businesses, net of cash acquired | (47.5) | |
Disposition of businesses | 13.7 | |
Proceeds from sales of investments and other assets | 127.6 | 3.7 |
Transfers (to) from restricted cash | (2.4) | 13.7 |
Other investing activities | (3.6) | |
Net cash provided by (used in) investing activities | 48 | (167.9) |
FINANCING ACTIVITIES | ||
Net change in short-term debt | 10.2 | 5.7 |
Payments of current maturities and long-term debt | (200.9) | (786.6) |
Proceeds from issuances of long-term debt | 1,164 | |
Payments on Credit Agreement borrowings | (1,000) | |
Proceeds from Credit Agreement borrowings | 1,165 | |
Proceeds from termination of interest rate swaps | 2.5 | |
Debt issuance costs | 4.4 | 37.5 |
Dividends paid | (29.4) | (163.2) |
Net transfer of cash and cash equivalents to LSC and Donnelley Financial | (78) | |
Other financing activities | (1.6) | 2.5 |
Net cash (used in) provided by financing activities | (139.1) | 187.4 |
Effect of exchange rate on cash and cash equivalents | 12 | (5.1) |
Net (decrease) increase in cash and cash equivalents | (91.7) | 22.2 |
Cash and cash equivalents at beginning of year | 317.5 | 389.6 |
Cash and cash equivalents at end of period | 225.8 | 411.8 |
SUPPLEMENTAL NON-CASH DISCLOSURE: | ||
Assumption of warehousing equipment related to customer contract | 8.8 | |
Debt-for-equity exchange | $ 132.9 | |
Debt-for-debt exchanges, including debt issuance costs of $5.5 million in 2016 | $ 300 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Statement Of Cash Flows [Abstract] | |
Debt-for-debt exchanges, debt issuance costs | $ 5.5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley & Sons Company and its subsidiaries (the “Company” or “RRD”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 28, 2017. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. All significant 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. Spinoff Transactions On October 1, 2016, the Company completed the separation of its financial communications and data services business (“Donnelley Financial Solutions, Inc.” or “Donnelley Financial”) and the publishing and retail-centric print services and office products business (“LSC Communications, Inc.” or “LSC”) into two separate publicly-traded companies (the "Separation"). The Company completed the tax-free distribution of 80.75% of the outstanding common stock of each Donnelley Financial and LSC to the Company’s stockholders of record on September 23, 2016 who received one share of each Donnelley Financial and LSC for every eight shares of RRD common stock owned as of the record date (the “Distribution”). The Company retained 19.25% of the outstanding common stock of each Donnelley Financial and LSC. The historical financial results of Donnelley Financial and LSC prior to the Separation, are presented as discontinued operations on the Condensed Consolidated Statements of Operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Sales from RRD to Donnelley Financial and LSC previously eliminated in consolidation have been recast and are now shown as external sales within the financial results of continuing operations. These net sales were $72.5 million and $150.4 million for the three and nine months ended September 30, 2016, respectively. Unless indicated otherwise, the information in the Notes to Condensed Consolidated Financial Statements relates to the Company's continuing operations. Prior periods have been recast to reflect the Company's current segment reporting structure. See Note 2, Discontinued Operations , for more information on the Separation. Reverse Stock Split Immediately following the Distribution on October 1, 2016, the Company affected a one-for-three reverse stock split for RRD common stock (the “Reverse Stock Split”). The Reverse Stock Split was approved by the Company’s Board of Directors on September 14, 2016 and previously approved by the Company’s stockholders at the annual meeting on May 19, 2016. As a result of the Reverse Stock Split, the number of issued and outstanding and treasury shares of the Company’s common stock was reduced proportionally based on the Reverse Stock Split ratio of one share for every three shares of common stock held before the Reverse Stock Split . Revision of Net Sales and Cost of Sales During the third quarter of 2017, the Company identified an error in the accounting for certain contracts with an inventory buy-back option within the Asia reporting unit, which is in the International segment. As a result, the error, which was determined by management to be immaterial to the previously issued financial statements, has been corrected herein from the amounts previously reported. There was no impact to net earnings (loss) or net earnings (loss) per share, or the Consolidated Statements of Comprehensive Income or Stockholders’ Equity. The following table presents the impact of the revision on net sales and cost of sales: As Reported Adjustments As Revised Three months ended March 31, 2016 Products net sales $ 1,242.7 $ 13.1 $ 1,229.6 Total net sales 1,645.6 13.1 1,632.5 Products cost of sales 971.9 13.1 958.8 Total cost of sales 1,313.1 13.1 1,300.0 Three months ended June 30, 2016 Products net sales $ 1,231.7 $ 16.6 $ 1,215.1 Total net sales 1,632.6 16.6 1,616.0 Products cost of sales 985.2 16.6 968.6 Total cost of sales 1,316.2 16.6 1,299.6 Three months ended September 30, 2016 Products net sales $ 1,343.4 $ 15.6 $ 1,327.8 Total net sales 1,741.2 15.6 1,725.6 Products cost of sales 1,046.3 15.6 1,030.7 Total cost of sales 1,377.0 15.6 1,361.4 Three months ended December 31, 2016 Products net sales $ 1,470.3 $ 17.4 $ 1,452.9 Total net sales 1,876.3 17.4 1,858.9 Products cost of sales 1,161.0 17.4 1,143.6 Total cost of sales 1,512.6 17.4 1,495.2 Three months ended March 31, 2017 Products net sales $ 1,288.9 $ 17.4 $ 1,271.5 Total net sales 1,676.3 17.4 1,658.9 Products cost of sales 1,024.3 17.4 1,006.9 Total cost of sales 1,348.5 17.4 1,331.1 Three months ended June 30, 2017 Products net sales $ 1,263.4 $ 26.0 $ 1,237.4 Total net sales 1,646.0 26.0 1,620.0 Products cost of sales 1,020.7 26.0 994.7 Total cost of sales 1,342.9 26.0 1,316.9 The following table presents the impact of the related balance sheet revision on the December 31, 2016 Condensed Consolidated Balance Sheet: As Reported Adjustments As Revised Receivables, less allowance for doubtful accounts $ 1,354.4 $ (23.1 ) $ 1,331.3 Inventories 379.6 7.2 386.8 Accounts payable 1,001.2 (15.9 ) 985.3 The September 30, 2016 Consolidated Statement of Cash Flows has also been revised to reflect the impact of the above balance sheet revision. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations Immediately following the Distribution, the Company held approximately 6.2 million shares of Donnelley Financial common stock and approximately 6.2 million shares of LSC common stock. The Company accounted for these investments as available-for-sale equity securities. In March 2017, the Company sold the 6.2 million shares of LSC common stock it retained upon spinoff for net proceeds of $121.4 million, resulting in a realized loss of $51.6 million, which was recorded within investment and other income-net in the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2017. In June 2017, the Company completed a non-cash debt-for-equity exchange in which RRD exchanged 6,143,208 of its retained shares of Donnelley Financial common stock for the extinguishment of $111.6 million in aggregate principal amount of RRD indebtedness. In August 2017, the Company disposed of its remaining 99,594 shares of Donnelley Financial common stock in exchange for the extinguishment of $1.9 million in aggregate principal amount of RRD indebtedness. See Note 15, Debt The following details the financial results of discontinued operations: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Net sales $ 1,122.6 $ 3,303.4 Cost of sales 879.1 2,534.7 Operating expenses (a) 170.0 592.0 Interest and other expense net (b) 104.0 139.5 (Loss) earnings before income taxes (30.5 ) 37.2 Income tax (benefit) expense (1.4 ) 21.4 Net (loss) earnings from discontinued operations $ (29.1 ) $ 15.8 (a) Includes spinoff transaction costs incurred of $27.0 million and $57.3 million during the three and nine month periods ended September 30, 2016, respectively. (b) Includes the related interest expense of the corporate level debt which was retired in connection with the Separation totaling $17.8 million and $53.6 million for the three and nine months ended September 30, 2016, respectively. Also includes the losses on the extinguishment of corporate level debt executed in conjunction with the spinoff transactions totaling $85.3 million, for the three and nine months ended September 30, 2016. The significant non-cash items and capital expenditures of discontinued operations were as follows: Nine Months Ended September 30, 2016 Depreciation and amortization $ 159.0 Pension settlement charges 77.7 Impairment charges 1.5 Loss on debt extinguishments 85.3 Assumption of warehousing equipment related to customer contract 8.8 Purchase of property, plant and equipment 49.0 In connection with the Separation, the Company entered into transition services agreements with Donnelley Financial and LSC under which the companies will provide one another with certain services to help ensure an orderly transition following the Separation (the “Transition Services Agreements”). The charges for these services are intended to allow the companies, as applicable, to recover the direct and indirect costs incurred in providing such services. The Transition Services Agreements generally provide for a term of services starting at the Separation date and continuing for a period of up to twenty-four months following the Separation. During the three and nine months ended September 30, 2017, the Company recognized $1.4 million and $6.4 million, respectively, as a reduction of costs within selling, general and administrative expenses within the Condensed Consolidated Statements of Operations from the Transition Services Agreement. The Company also entered into various commercial agreements which govern sales transactions between the companies. Under these commercial agreements, the Company recognized the following transactions with LSC and Donnelley Financial during the three and nine months ended September 30, 2017: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Net sales to LSC and Donnelley Financial $ 67.2 $ 236.3 Purchases from LSC and Donnelley Financial 36.2 105.2 The Company also recognized $ 83.0 S |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 3. Acquisitions and Dispositions 2016 Acquisition O n August 4, 2016, the Company acquired Precision Dialogue Holdings, LLC (“Precision Dialogue”), a provider of email marketing, direct mail marketing and other services with operations in the United States for a purchase price, net of cash acquired, of approximately $59.2 million. The acquisition expanded the Company’s ability to help its customers measure communications effectiveness and audience engagement. Precision Dialogue contributed $17.0 million and $44.5 million, respectively, in net sales and earnings before income taxes of $2.9 million and $4.4 million, respectively. During both the three and nine months ended September 30, 2016, Precision Dialogue contributed $8.4 million in net sales and earnings before income taxes of $0.6 million. Precision Dialogue included within the operating results of the Variable Print and Strategic Services segments. 2016 Dispositions O n January 11, 2016, the Company sold two entities within the business process outsourcing reporting unit for net proceeds of $13.4 million. This resulted in a net gain of $12.3 million during the nine months ended September 30, 2016, which was recorded in other operating income in the Condensed Consolidated Statements of Operations. Additionally, in the third quarter of 2016, the Company sold three immaterial entities in the International segment, which resulted in a net loss of $0.3 million during the three and nine months ended September 30, 2016. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, 2017 2016 Raw materials and manufacturing supplies $ 168.6 $ 141.0 Work in process 114.7 84.4 Finished goods 190.1 179.4 LIFO reserve (16.3 ) (18.0 ) Total $ 457.1 $ 386.8 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment The components of the Company’s property, plant and equipment at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, 2017 2016 Land $ 56.1 $ 56.0 Buildings 415.0 403.0 Machinery and equipment 1,869.2 1,805.4 2,340.3 2,264.4 Less: Accumulated depreciation (1,715.7 ) (1,614.1 ) Total $ 624.6 $ 650.3 During the three and nine months ended September 30, 2017, depreciation expense was $34.6 million and $105.2 million, respectively. During the three and nine months ended September 30, 2016, depreciation expense was $37.6 million and $116.2 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows: Variable Strategic Services International Total Net book value as of December 31, 2016 Goodwill $ 1,823.0 $ 365.2 $ 1,017.9 $ 3,206.1 Accumulated impairment losses (1,550.5 ) (148.7 ) (904.9 ) (2,604.1 ) Total 272.5 216.5 113.0 602.0 Foreign exchange and other adjustments — — 6.9 6.9 Impairment charges — (21.3 ) — (21.3 ) Net book value as of September 30, 2017 Goodwill 1,824.1 365.2 1,090.3 3,279.6 Accumulated impairment losses (1,551.6 ) (170.0 ) (970.4 ) (2,692.0 ) Total $ 272.5 $ 195.2 $ 119.9 $ 587.6 During the third quarter of 2017, the Company recorded non-cash charges of $21.3 million to reflect the impairment of goodwill in the Strategic Services segment. See Note 7, Restructuring, Impairment and Other Charges The components of other intangible assets at September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 532.9 $ (404.8 ) $ 128.1 $ 517.9 $ (370.7 ) $ 147.2 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 26.2 (24.9 ) 1.3 26.2 (24.4 ) 1.8 Trade names 36.8 (15.7 ) 21.1 36.8 (13.9 ) 22.9 Total other intangible assets $ 597.9 $ (447.4 ) $ 150.5 $ 582.9 $ (411.0 ) $ 171.9 Amortization expense for other intangible assets was $7.1 million and $21.6 million for the three and nine months ended September 30, 2017, respectively. Amortization expense for other intangible assets was $8.0 million and $25.7 million for the three and nine months ended September 30, 2016, respectively. |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other Charges | 7. Restructuring, Impairment and Other Charges Restructuring, Impairment and Other Charges Recognized in Results of Operations For the three months ended September 30, 2017 and 2016, the Company recorded the following net restructuring, impairment and other charges: Three Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Variable Print $ 3.0 $ 0.6 $ 3.6 $ 0.2 $ 0.4 $ 4.2 Strategic Services 0.7 — 0.7 21.3 0.1 22.1 International 1.9 0.3 2.2 — — 2.2 Corporate 5.1 0.2 5.3 — — 5.3 Total $ 10.7 $ 1.1 $ 11.8 $ 21.5 $ 0.5 $ 33.8 Three Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2016 Terminations Charges Charges Impairment Charges Total Variable Print $ 1.1 $ 0.3 $ 1.4 $ — $ 0.5 $ 1.9 Strategic Services 1.2 — 1.2 — 0.1 1.3 International 0.9 0.2 1.1 — — 1.1 Corporate 6.5 0.1 6.6 (0.1 ) — 6.5 Total $ 9.7 $ 0.6 $ 10.3 $ (0.1 ) $ 0.6 $ 10.8 For the nine months ended September 30, 2017 and 2016, the Company recorded the following net restructuring, impairment and other charges: Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Variable Print $ 4.0 $ 0.9 $ 4.9 $ (0.1 ) $ 1.4 $ 6.2 Strategic Services 1.8 0.3 2.1 21.8 0.3 24.2 International 6.4 2.2 8.6 — — 8.6 Corporate 7.3 0.4 7.7 — — 7.7 Total $ 19.5 $ 3.8 $ 23.3 $ 21.7 $ 1.7 $ 46.7 Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2016 Terminations Charges Charges Impairment Charges Total Variable Print $ 1.5 $ 1.5 $ 3.0 $ 0.3 $ 1.4 $ 4.7 Strategic Services 1.7 — 1.7 — 0.3 2.0 International 7.4 1.3 8.7 (2.5 ) — 6.2 Corporate 10.1 0.1 10.2 1.2 — 11.4 Total $ 20.7 $ 2.9 $ 23.6 $ (1.0 ) $ 1.7 $ 24.3 Restructuring and Impairment Charges For the three and nine months ended September 30, 2017, the Company recorded net restructuring charges of $10.7 million and $19.5 million, respectively, for employee termination costs. These charges primarily relate to the reorganization of selling, general and administrative functions primarily within the Corporate, International and Variable Print segments, the termination of the Company’s relationship in a joint venture within the International segment and a facility closure in the Strategic Services segment. For the three and nine months ended September 30, 2017, the Company recorded net impairment charges of $21.5 million and $21.7 million, respectively, primarily related to the $21.3 million impairment of the goodwill for the digital and creative solutions (“DCS”) reporting unit, which is included within the Strategic Services segment. The goodwill impairment charge in the DCS reporting unit was due to the notification from a major customer that they will be transitioning their business away from DCS beginning in the fourth quarter of 2017 as well as declines in sales with other existing customers which resulted in lower expectations of future revenues, profitability and cash flows compared to expectations as of the October 31, 2016 annual goodwill impairment test. As of September 30, 2017, the DCS reporting unit had no remaining goodwill. The goodwill impairment charges were determined using Level 3 inputs, including comparable marketplace fair value data and a discounted cash flow analysis For the three and nine months ended September 30, 2016, the Company recorded net restructuring charges of $9.7 million and $20.7 million, respectively, for employee termination costs. These charges primarily related to two facility closures in the International segment and the reorganization of certain administrative functions and operations. Additionally, the Company incurred lease termination and other restructuring charges of $0.6 million and $2.9 million for the three and nine months ended September 30, 2016, respectively. For the three and nine months ended September 30, 2016, the Company recognized $0.1 million and $1.0 million, respectively, of net gains on the sale of previously impaired assets, partially offset by impairment charges related to buildings and machinery and equipment associated with facility closures. Other Charges For the three and nine months ended September 30, 2017 and 2016, the Company recorded other charges of $0.5 million and $1.7 million and $0.6 million and $1.7 million, respectively, for multi-employer pension plan withdrawal obligations unrelated to facility closures. The total liabilities for the withdrawal obligations associated with the Company’s decision to withdraw from multi-employer pension plans included in accrued liabilities and other noncurrent liabilities are $5.1 million and $32.4 million, respectively, as of September 30, 2017 . The Company’s multi-employer pension plan withdrawal liabilities could be affected by the financial stability of other employers participating in the plans and any decisions by those employers to withdraw from the 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 multi-employer pension plans, including certain plans from which the Company has previously withdrawn, could have a material impact on the Company’s previously estimated withdrawal liabilities, consolidated results of operations, financial position or cash flows. Restructuring Reserve The restructuring reserve as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: Foreign December 31, Restructuring Exchange and Cash September 30, 2016 Charges Other Paid 2017 Employee terminations $ 7.6 $ 19.5 $ — $ (13.5 ) $ 13.6 Multi-employer pension withdrawal obligations 11.8 0.6 (0.1 ) (1.1 ) 11.2 Lease terminations and other 1.6 3.2 1.2 (2.8 ) 3.2 Total $ 21.0 $ 23.3 $ 1.1 $ (17.4 ) $ 28.0 The current portion of restructuring reserves of $14.4 million at September 30, 2017 was included in accrued liabilities, while the long-term portion of $13.6 million, primarily related to multi-employer pension plan withdrawal obligations related to facility closures, was included in other noncurrent liabilities at September 30, 2017. The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by September 2018. Payments on all of the Company’s multi-employer pension plan withdrawal obligations are scheduled to be completed by 2036. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to multi-employer pension plan withdrawals. The restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2020. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 8. Employee Benefits The components of the estimated net pension and other postretirement benefits plan income for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pension (income) expense Service cost $ 0.1 $ 0.3 $ 0.5 $ 0.8 Interest cost 8.0 37.9 23.7 105.3 Expected return on plan assets (12.7 ) (58.2 ) (37.6 ) (171.2 ) Amortization, net 1.9 7.6 5.4 23.4 Settlements and curtailments — 1.6 — 98.0 Less: income (expense) attributable to discontinued operations — 10.2 — (43.3 ) Net pension (income) expense - continuing operations $ (2.7 ) $ (0.6 ) $ (8.0 ) $ 13.0 Other postretirement benefits plan income Service cost $ 0.4 $ 1.0 $ 1.0 $ 3.0 Interest cost 2.7 3.1 8.3 9.2 Expected return on plan assets (3.4 ) (3.4 ) (10.1 ) (10.2 ) Amortization, net (0.7 ) (4.0 ) (2.2 ) (12.0 ) Curtailments — (19.7 ) — (19.7 ) Net other postretirement benefit income - continuing operations $ (1.0 ) $ (23.0 ) $ (3.0 ) $ (29.7 ) The Company expects to make cash contributions of approximately $17.0 million to its pension and other postretirement benefit plans in 2017. During the nine months ended September 30, 2017, the Company contributed $12.4 million to its benefit plans. In the fourth quarter of 2015, the Company communicated to certain former employees the option to receive a lump-sum pension payment or annuity with payments computed in accordance with statutory requirements, beginning in the second quarter of 2016. Payments to eligible participants who elected to receive a lump-sum pension payment or annuity were funded from existing pension plan assets and liabilities were remeasured as of the payout date. The discount rates and actuarial assumptions used to calculate the payouts were determined in accordance with federal regulations. The company recorded total non-cash settlement charges of $1.6 million and $98.0 million, of which $0.3 million and $20.7 million is included within selling, general and administrative expenses and $1.3 million and $77.3 million is included within income from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations During the third quarter of 2016, the Company announced the discontinuation of retiree medical, prescription drug and life insurance benefits for individuals retiring on or after October 1, 2016. This change was accounted for as a significant plan amendment and the other postemployment benefit plan obligations were remeasured as of September 30, 2016. This remeasurement resulted in a curtailment gain of $16.4 million within cost of sales and $3.3 million in selling, general and administrative expenses during the three and nine months ended September 30, 2016. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation Share-based compensation expense from continuing operations totaled $2.1 million for both the three months ended September 30, 2017 and 2016, respectively, and $6.4 million and $7.9 million for the nine months ended September 30, 2017 and 2016, respectively. In March 2017, the Company awarded its annual share-based compensation grants, which consisted of 569,594 restricted stock units with a grant date fair value of $16.30 per unit and 304,425 performance share units with a grant date fair value of $16.30 per unit. The restricted stock units are subject to a three year graded vesting period. The performance share units are subject to a 34 month cliff vesting period. Additionally, during the nine months ended September 30, 2017, the Company awarded 102,191 restricted stock units with a weighted average grant date fair value of $11.77 per share and a weighted average vesting period of 1.5 years. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity | 10. Equity The Company’s equity as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: RRD Stockholders' Noncontrolling Equity Interest Total Equity Balance at December 31, 2016 $ (105.7 ) $ 13.5 $ (92.2 ) Net earnings 18.4 0.7 19.1 Other comprehensive (loss) income (70.8 ) 0.4 (70.4 ) Share-based compensation 6.4 — 6.4 Spinoff adjustments 5.9 — 5.9 Issuance of share-based awards, net of withholdings and other (1.7 ) — (1.7 ) Cash dividends paid (29.4 ) — (29.4 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at September 30, 2017 $ (176.9 ) $ 13.9 $ (163.0 ) During the nine months ended September 30, 2017, the Company recorded certain spinoff related adjustments within equity primarily resulting from the final pension asset valuation as required by the Separation and Distribution Agreement. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 11. Earnings per Share Basic earnings per share is calculated by dividing net earnings attributable to RRD common stockholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are considered anti-dilutive and excluded if the performance targets, upon which the issuance of the shares is contingent, have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average of the Company’s stock price during the applicable period. In periods when the Company is in a net loss from continuing operations, share-based awards are excluded from the calculation of earnings per share as their inclusion would have an anti-dilutive effect. During the nine months ended September 30, 2017 and 2016, no shares of common stock were purchased by the Company; however, shares were withheld for tax liabilities upon the vesting of equity awards. The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for three and nine months ended September 30, 2017 and 2016 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.11 ) $ 0.31 $ 0.26 $ 0.03 Discontinued operations — (0.41 ) — 0.23 Net (loss) earnings attributable to RRD stockholders $ (0.11 ) $ (0.10 ) $ 0.26 $ 0.26 Diluted net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.11 ) $ 0.31 $ 0.26 $ 0.03 Discontinued operations — (0.41 ) — 0.23 Net (loss) earnings attributable to RRD stockholders $ (0.11 ) $ (0.10 ) $ 0.26 $ 0.26 Numerator Net (loss) earnings attributable to RRD common stockholders - continuing operations $ (8.0 ) $ 22.0 $ 18.4 $ 2.4 Net (loss) earnings from discontinued operations, net of income taxes — (29.1 ) — 15.8 Net (loss) earnings attributable to RRD common stockholders $ (8.0 ) $ (7.1 ) $ 18.4 $ 18.2 Denominator: Weighted average number of common shares outstanding 70.2 70.0 70.1 70.0 Dilutive options and awards — 0.5 0.2 0.5 Diluted weighted average number of common shares outstanding 70.2 70.5 70.3 70.5 Weighted average number of anti-dilutive share-based awards: Stock options 1.3 0.8 1.0 0.7 Performance share units 0.3 0.2 0.3 0.2 Restricted stock units 1.1 0.3 0.7 — Total 2.7 1.3 2.0 0.9 Dividends declared per common share $ 0.14 $ 0.78 $ 0.42 $ 2.34 |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income | 12. Other Comprehensive (Loss) Income The components of other comprehensive income (loss) and income tax (benefit) expense allocated to each component for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 17.7 $ — $ 17.7 $ 46.8 $ — $ 46.8 Adjustment for net periodic pension and other postretirement benefits plan cost 1.2 0.5 0.7 3.2 1.1 2.1 Adjustments for available-for-sale securities (1.8 ) — (1.8 ) (122.3 ) (3.0 ) (119.3 ) Other comprehensive income (loss) $ 17.1 $ 0.5 $ 16.6 $ (72.3 ) $ (1.9 ) $ (70.4 ) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ (4.4 ) $ — $ (4.4 ) $ (9.0 ) $ — $ (9.0 ) Adjustment for net periodic pension and other postretirement benefits plan cost (32.4 ) (13.0 ) (19.4 ) (16.3 ) (3.0 ) (13.3 ) Other comprehensive loss $ (36.8 ) $ (13.0 ) $ (23.8 ) $ (25.3 ) $ (3.0 ) $ (22.3 ) During the nine months ended September 30, 2016, translation adjustments and income tax expense on pension and other postretirement benefits plan cost were adjusted to reflect previously recorded deferred taxes at their historical exchange rates. 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, were as follows: Changes in the Fair Value of Available-for-Sale Securities Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2016 $ 119.3 $ (159.5 ) $ (15.5 ) $ (55.7 ) Other comprehensive (loss) income before reclassifications (48.5 ) — 43.6 (4.9 ) Amounts reclassified from accumulated other comprehensive loss (70.8 ) 2.1 2.8 (65.9 ) Net change in accumulated other comprehensive loss (119.3 ) 2.1 46.4 (70.8 ) Balance at September 30, 2017 $ — $ (157.4 ) $ 30.9 $ (126.5 ) Accumulated other comprehensive loss by component as of December 31, 2015 and September 30, 2016, and changes during the nine months ended September 30, 2016, were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2015 $ (727.5 ) $ (65.7 ) $ (793.2 ) Other comprehensive loss before reclassifications (69.7 ) (8.5 ) (78.2 ) Amounts reclassified from accumulated other comprehensive loss 55.2 — 55.2 Amounts reclassified due to disposition of a business 1.2 (0.7 ) 0.5 Net change in accumulated other comprehensive loss (13.3 ) (9.2 ) (22.5 ) Balance at September 30, 2016 $ (740.8 ) $ (74.9 ) $ (815.7 ) Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification in the Condensed Consolidated 2017 2016 2017 2016 Statements of Operations Translation Adjustments: Net realized loss $ 2.8 — $ 2.8 — Selling, general and administrative expenses Reclassifications before tax 2.8 — 2.8 — Income tax benefit — — — — Reclassification, net of tax $ 2.8 $ — $ 2.8 $ — Amortization of pension and other postretirement benefits plan cost: Net actuarial loss $ 1.9 $ 7.8 $ 5.4 $ 23.5 Cost of sales; Selling, general and administrative expenses Net prior service credit (0.7 ) (4.0 ) (2.2 ) (12.0 ) Cost of sales; Selling, general and administrative expenses Settlements — 1.6 — 98.5 Cost of sales; Selling, general and administrative expenses Curtailments — (19.7 ) — (19.7 ) Cost of sales; Selling, general and administrative expenses Reclassifications before tax 1.2 (14.3 ) 3.2 90.3 Income tax expense (benefit) 0.5 (7.9 ) 1.1 35.1 Reclassification, net of tax $ 0.7 $ (6.4 ) $ 2.1 $ 55.2 Available-for-sale securities: Net realized gain on equity securities (1.8 ) — (52.8 ) — Investment and other income-net Reclassifications before tax (1.8 ) — (52.8 ) — Income tax benefit — — 18.0 — Reclassification, net of tax (1.8 ) — (70.8 ) — Total reclassifications, net of tax $ 1.7 $ (6.4 ) $ (65.9 ) $ 55.2 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company’s segments and their product and service offerings are summarized below: Variable Print This segment includes the Company’s U.S. short-run and transactional printing operations. This segment’s primary product offerings include commercial and digital print, direct mail, labels, statement printing, forms and packaging. Strategic Services This segment includes the Company’s logistics services, print management offerings and digital and creative solutions. International This segment includes the Company’s non-U.S. printing operations in Asia, Latin America, Canada and Europe. This segment’s primary product and service offerings include packaging, books, catalogs, magazines, retail inserts, statement printing, commercial and digital print, forms, labels, logistics services, directories, digital and creative solutions, and direct mail. Additionally, this segment includes the Company’s business process outsourcing and Global Turnkey Solutions operations. Business process outsourcing provides transactional print and outsourcing services, statement printing, direct mail and print management offerings through its operations in Europe, Asia and North America. Global Turnkey Solutions provides outsourcing capabilities, including product configuration, customized kitting and order fulfillment for technology, medical device and other companies around the world through its operations in Europe, North America and Asia. 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, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefits plan expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages the Company’s cash pooling structures, which enable participating international locations to draw on the Company’s overseas cash resources to meet local liquidity needs. Information by Segment The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2017 Variable Print $ 771.7 $ (4.2 ) $ 767.5 $ 39.3 $ 28.5 $ 6.3 Strategic Services 483.5 (39.8 ) 443.7 (14.8 ) 3.8 (0.2 ) International 532.6 (8.9 ) 523.7 20.6 13.7 11.9 Total operating segments 1,787.8 (52.9 ) 1,734.9 45.1 46.0 18.0 Corporate — — — (9.2 ) 1.0 5.0 Total operations $ 1,787.8 $ (52.9 ) $ 1,734.9 $ 35.9 $ 47.0 $ 23.0 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2016 Variable Print $ 796.8 $ (6.5 ) $ 790.3 $ 50.1 $ 30.5 $ 15.0 Strategic Services 486.9 (41.9 ) 445.0 13.3 4.3 - International 501.5 (11.2 ) 490.3 36.0 14.8 6.3 Total operating segments 1,785.2 (59.6 ) 1,725.6 99.4 49.6 21.3 Corporate — — — (15.4 ) 1.4 7.4 Total operations $ 1,785.2 $ (59.6 ) $ 1,725.6 $ 84.0 $ 51.0 $ 28.7 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Nine Months Ended September 30, 2017 Variable Print $ 2,291.9 $ (12.3 ) $ 2,279.6 $ 114.2 $ 86.2 $ 21.8 Strategic Services 1,394.4 (120.1 ) 1,274.3 (7.0 ) 12.6 6.0 International 1,488.1 (28.2 ) 1,459.9 53.8 41.1 34.3 Total operating segments 5,174.4 (160.6 ) 5,013.8 161.0 139.9 62.1 Corporate — — — (39.1 ) 3.2 15.1 Total operations $ 5,174.4 $ (160.6 ) $ 5,013.8 $ 121.9 $ 143.1 $ 77.2 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Nine Months Ended September 30, 2016 Variable Print $ 2,326.3 $ (14.5 ) $ 2,311.8 $ 144.0 $ 90.5 $ 45.5 Strategic Services 1,343.9 (114.3 ) 1,229.6 25.3 14.0 13.1 International 1,465.7 (33.0 ) 1,432.7 101.8 46.7 23.8 Total operating segments 5,135.9 (161.8 ) 4,974.1 271.1 151.2 82.4 Corporate — — — (104.8 ) 2.3 16.5 Total operations $ 5,135.9 $ (161.8 ) $ 4,974.1 $ 166.3 $ 153.5 $ 98.9 Restructuring, impairment and other charges by segment are described in Note 7, Restructuring, Impairment and Other Charges |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies The Company is subject to laws and regulations relating to the protection of the environment. The Company provides 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 three active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate seven 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 consolidated results of operations, financial position or 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 consolidated results of operations, financial position or cash flows. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 15. Debt The Company’s debt at September 30, 2017 and December 31, 2016 consisted of the following: September 30, December 31, 2017 2016 Borrowings under the Credit Agreement $ 350.0 $ 185.0 11.25% senior notes due February 1, 2019 (a) 172.2 172.2 7.625% senior notes due June 15, 2020 238.4 350.0 7.875% senior notes due March 15, 2021 447.1 448.8 8.875% debentures due April 15, 2021 80.9 80.9 7.00% senior notes due February 15, 2022 140.0 140.0 6.50% senior notes due November 15, 2023 290.6 350.0 6.00% senior notes due April 1, 2024 298.3 400.0 6.625% debentures due April 15, 2029 157.9 199.5 8.820% debentures due April 15, 2031 69.0 69.0 Other (b) 17.9 8.5 Unamortized debt issuance costs (12.2 ) (16.5 ) Total debt 2,250.1 2,387.4 Less: current portion (17.9 ) (8.2 ) Long-term debt $ 2,232.2 $ 2,379.2 (a) As of September 30, 2017 and December 31, 2016, the interest rate on the 11.25% senior notes due February 1, 2019 was 13.25%, the maximum rate on these notes, as a result of ratings downgrades. (b) Includes miscellaneous debt obligations and capital leases. The fair values of the senior notes and debentures, which 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 $38.9 million and $4.3 million at September 30, 2017 and December 31, 2016, respectively. On September 29, 2017, t he Company entered into an asset-based revolving credit facility pursuant to the second amended and restated credit agreement (the “Credit Agreement”) which amended and restated the Company’s $800.0 million senior secured revolving credit facility dated September 30, 2016. The Credit Agreement provides for a senior secured asset-based revolving credit facility of up to $800.0 million subject to a borrowing base. The amount available to be borrowed under the Credit Agreement is equal to the lesser of (a) $800.0 million and (b) the aggregate amount of accounts receivable, inventory, machinery and equipment and fee-owned real estate of the Company and certain of its domestic subsidiaries (the “Guarantors”) (collectively, the “Borrowing Base”), subject to certain eligibility criteria and advance rates. The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base cannot exceed $200.0 million. As a result of the amendment, the Company recognized a $6.2 million loss related to unamortized debt issuance costs and other expenses within loss on debt extinguishments in the Condensed Consolidated Statements of Operations for the three and nine months ended . Additionally, the Company had approximately $0.6 million of accrued financing fees as of related to this transaction. The Credit Agreement is scheduled to mature on September 29, 2022, at which time all outstanding amounts under the Credit Agreement will be due and payable. The proceeds of the loans under the Credit Agreement may be used for working capital and general corporate purposes. Any borrowings under the Credit Agreement will bear interest at a rate dependent on the average quarterly availability under the Credit Agreement and will be calculated according to a base rate or a Eurocurrency rate plus an applicable margin. The applicable margin for base rate loans ranges from 0.25% to 0.50% and the applicable margin for Eurocurrency loans ranges from 1.25% to 1.50%. In addition, an unused line fee is payable quarterly on the unused portion of the amount available to be borrowed under the Credit Agreement. The unused line fee accrues at a rate of either 0.250% or 0.375% depending upon the average usage of the facility. The Company’s obligations under the Credit Agreement are guaranteed by the Guarantors and are secured by a security interest in certain assets of the Company and its domestic subsidiaries, including accounts receivable, inventory, deposit accounts, securities accounts, investment property, machinery and equipment and, to the extent related to the foregoing, general intangibles, documents, instruments and chattel paper, as well as 65% of the equity interests of their first-tier foreign subsidiaries. The Credit Agreement contains customary restrictive covenants, including a covenant which requires the Company to maintain a minimum fixed charge coverage ratio under certain circumstances. In addition, the Company’s ability to undertake certain actions, including, among other things, prepay certain junior debt, incur additional unsecured indebtedness and make certain restricted payments depends on satisfaction of certain conditions, including, among other things, meeting minimum availability thresholds under the Credit Agreement. The weighted average interest rate on borrowings under the credit facilities was 3.7% and 2.2% during the nine months ended September 30, 2017 and 2016, respectively. On June 7, 2017, the Company repurchased $41.7 million of the 6.625% debentures due April 15, 2029, $59.4 million of the 6.50% senior notes due November 15, 2023 and $101.7 million of the 6.00% senior notes due April 1, 2024 using borrowings under the prior credit agreement. The repurchases resulted in a net gain of $0.8 million which was recognized within loss on debt extinguishments in the Condensed Consolidated Statements of Operations . On May 22, 2017, certain third party financial institutions (such financial institutions collectively, the “Third Party Purchasers”), launched cash tender offers for certain of the Company’s outstanding debt securities, including the Company’s 7.625% senior notes due June 15, 2020 and 7.875% senior notes due March 15, 2021. On June 7, 2017, the Third Party Purchasers purchased $111.6 million in aggregate principal amount of the 7.625% senior notes due June 15, 2020 (the “Third Party Purchase Notes”). On June 21, 2017, the Company exchanged 6,143,208 of its retained shares of Donnelley Financial for the Third Party Purchase Notes. The Company cancelled the Third Party Purchase Notes on June 21, 2017. As a result, the Company recognized a $14.4 million loss on debt extinguishment during the nine months ended September 30, 2017 related to premiums paid, unamortized debt issuance costs and other expenses. In addition, the Company recognized a net realized gain of $92.4 million resulting from the disposition of these retained shares of Donnelley Financial common stock within investment and other income-net during the nine months ended September 30, 2017. On August 4, 2017, the Company disposed of its remaining 99,594 shares of Donnelley Financial common stock in exchange for $1.9 million in aggregate principal of the Company’s 7.875% senior notes due March 15, 2021 which were cancelled. As a result, the Company recognized a $0.3 million loss on debt extinguishments in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2017, related to premiums paid, unamortized debt issuance costs and other expenses. In addition, the Company recognized a net realized gain of $1.6 million resulting from the disposition of these retained shares of Donnelley Financial common stock within investment and other income-net in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2017. Interest income was $0.8 million and $2.3 million for the three and nine months ended September 30, 2017, respectively, and $1.9 million and $3.8 million for the three and nine months ended September 30, 2016, respectively . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The Company’s effective income tax rate was 31.0% and 38.4% for the three months ended September 30, 2017 and 2016, respectively and (63.2%) and 80.1% for the nine months ended September 30, 2017 and 2016, respectively. The effective income tax rate for the nine months ended September 30, 2017 reflects the impact of the disposition of the Donnelley Financial and LSC retained shares. The retained shares of Donnelley Financial were disposed in non-taxable debt-for-equity exchanges during the three and nine months ended September 30, 2017. See Note 15, Debt Discontinued Operations |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 17. Derivatives All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in the Condensed Consolidated Balance Sheets at their respective fair values. Unrealized gains and losses related to derivatives are recorded in other comprehensive income (loss), net of applicable income taxes, or in the Condensed Consolidated Statements of Operations, depending on the purpose for which the derivative is held. For derivatives designated and that qualify as cash flow hedges, the effective portion of the unrealized gain or loss related to the derivatives are generally recorded in other comprehensive income (loss) until the transaction affects earnings. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in the Condensed Consolidated Statements of Operations. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge at inception, or fail to meet the criteria thereafter, are recognized currently in the Condensed Consolidated Statements of Operations. At the inception of a hedge transaction, the Company formally documents the hedge relationship and the risk management objective for undertaking the hedge. In addition, the Company assesses both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is also recognized currently in the Condensed Consolidated Statements of Operations. The Company is exposed to the impact of foreign currency fluctuations in certain countries in which it operates. The exposure to foreign currency movements is limited in many countries because the operating revenues and expenses of its various subsidiaries and business units are substantially in the local currency of the country in which they operate. To the extent borrowings, sales, purchases, revenues, expenses or other transactions are not in the local currency of the subsidiary or operating unit, the Company is exposed to currency risk. Periodically, the Company uses foreign exchange spot, forward and swap contracts to hedge exposures resulting from foreign exchange fluctuations. Accordingly, the gains and losses associated with the fair values of foreign currency exchange contracts are recognized currently in the Condensed Consolidated Statements of Operations and are generally offset by gains and losses on underlying payables, receivables, borrowings and net investments in foreign subsidiaries. The Company does not use derivative financial instruments for trading or speculative purposes. The aggregate notional value of the foreign currency contracts at September 30, 2017 and December 31, 2016 was $136.7 million and $172.2 million, respectively. The fair values of foreign currency contracts were determined to be Level 2 under the fair value hierarchy and are valued using market exchange rates. On March 13, 2012, the Company entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $400.0 million of its fixed-rate senior notes to a floating-rate based on LIBOR plus a basis point spread. The interest rate swaps, with a notional value of $400.0 million at inception, were designated as fair value hedges against changes in the value of the Company’s $450.0 million 8.25% senior notes due March 15, 2019, which were attributable to changes in the benchmark interest rate. During 2014, the Company repurchased $211.1 million of the 8.25% senior notes due March 15, 2019, and related interest rate swaps with a notional amount of $210.0 million were terminated, resulting in payments of $4.2 million for the fair value of the interest rate swaps. During the three months ended September 30, 2016, in connection with the tender of the Company’s 8.25% senior notes due March 15, 2019, the Company terminated the remaining $190.0 million notional value of the interest rate swap agreements which resulted in cash received of $2.5 million for the fair value of the interest rate swaps. The fair values of interest rate swaps were determined to be Level 2 under the fair value hierarchy and were developed using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates derived from observed market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. On at least a quarterly basis, the Company evaluates the credit value adjustments of the interest rate swap agreements, which take into account the possibility of counterparty and the Company’s own default. The Company’s foreign currency contracts and interest rate swaps are subject to enforceable master netting agreements that allow the Company to settle positive and negative positions with the respective counterparties. The Company settles foreign currency contracts on a net basis when possible. Foreign currency contracts that can be settled on a net basis are presented net in the Condensed Consolidated Balance Sheets. Interest rate swaps were settled on a gross basis and presented gross in the Condensed Consolidated Balance Sheets. The Company manages credit risk for its derivative positions on a counterparty-by-counterparty basis, considering the net portfolio exposure with each counterparty, consistent with its risk management strategy for such transactions. The Company’s agreements with each of its counterparties contain a provision where the Company could be declared in default on its derivative obligations if it either defaults or, in certain cases, is capable of being declared in default of any of its indebtedness greater than specified thresholds. These agreements also contain a provision whereby the Company could be declared in default subsequent to a merger or restructuring type event if the creditworthiness of the resulting entity is materially weakened. At September 30, 2017 September 30, 2017 December 31, 2016 Derivatives not designated as hedges Prepaid expenses and other current assets $ 1.5 $ 1.7 Accrued liabilities 1.0 1.5 The pre-tax losses related to derivatives not designated as hedges recognized in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Classification of (Gain) Loss Recognized in the September 30, September 30, Condensed 2017 2016 2017 2016 Derivatives not designated as hedges Foreign currency contracts Selling, $ 0.5 $ 0.8 $ 1.1 $ 3.4 For derivatives designated as fair value hedges, the pre-tax (gains) losses related to the hedged items attributable to changes in the hedged benchmark interest rate and the offsetting (gain) loss on the related interest rate swaps for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Classification of (Gain) Loss Recognized in the September 30, September 30, Condensed 2017 2016 2017 2016 Fair Value Hedges Interest rate swaps Investment and other income-net $ — $ 3.6 $ — $ 0.4 Hedged items Investment and other income-net — (4.3 ) — (0.8 ) Total ineffectiveness recognized Investment and other income-net $ — $ (0.7 ) $ — $ (0.4 ) The Company also recognized a net reduction to interest expense of $0.2 million and $1.0 million for the three and nine months ended September 30, 2016, respectively, related to the Company’s fair value hedges, which included interest accruals on the derivatives and amortization of the basis in the hedged items. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: Basis of Fair Value Measurement Balance as of September 30, 2017 Significant Other Observable Inputs (Level 2) Assets Foreign currency contracts $ 1.5 $ 1.5 Total assets $ 1.5 $ 1.5 Liabilities Foreign currency contracts 1.0 1.0 Total liabilities $ 1.0 $ 1.0 Basis of Fair Value Measurement Balance as of December 31, 2016 Significant Other Observable Inputs (Level 2) Assets Foreign currency contracts $ 1.7 $ 1.7 Available-for-sale securities 328.7 328.7 Total assets $ 330.4 $ 330.4 Liabilities Foreign currency contracts 1.5 1.5 Total liabilities $ 1.5 $ 1.5 As of September 30, 2017, the Company no longer held investments in LSC or Donnelley Financial common stock. As of December 31, 2016, the Company’s investment in LSC and Donnelley Financial common stock were categorized as Level 2 securities as these shares were not registered and were valued based upon the closing stock price on the balance sheet date as they represented an identical equity instrument registered under the Securities Act of 1933, as amended. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 19. New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which changes the presentation of net periodic pension and postretirement benefit cost (net benefit cost) within the Statement of Operations. Under the current guidance, net benefit cost is reported as an employee cost within operating income. The amendment requires the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income while the other components will be reported separately outside of income from operations. ASU No. 2017-07 will be effective in the first quarter of 2018 and is required to be retrospectively adopted. Had this guidance been adopted as of January 1, 2017, income from operations within the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 would have been lower by $4.2 million and $12.5 million, respectively, and other non-operating income would have increased $4.2 million and $12.5 million, respectively. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminates Step 2 from the current goodwill impairment test, including determining the implied fair value of goodwill and comparing it with the carrying amount of that goodwill. The standard requires entities to record impairment charges based on the excess of a reporting unit’s carrying amount over its fair value. . The adoption of ASU 2017-04 may impact the results of future goodwill impairment tests and therefore could impact the Company’s consolidated financial position and results of operations. The Company has elected to early adopt this guidance and will apply this guidance to all impairment analyses performed after January 1, 2017. In November 2016, the FASB issued ASU No. 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash.” This update requires that restricted cash and cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. ASU No. 2016-18 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and a retrospective transition method is required. Early adoption is permitted, including adoption in an interim period. The Company currently presents changes in restricted cash and cash equivalents in the investing section of its Condensed Consolidated Statement of Cash Flows. The new guidance will not impact financial results, but will result in a change in the presentation of restricted cash and restricted cash equivalents within the Condensed Consolidated Statements of Cash Flows . In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update addresses whether to present certain specific cash flow items as operating, investing or financing activities. The amendments in this update are effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and are required to be retroactively adopted. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of ASU No. 2016-15 on its Condensed Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU Under the new guidance, when awards vest or are settled, the excess tax benefits and tax deficiencies are recorded as income tax expense or benefit in the income statement instead of within additional paid-in capital. This guidance will be applied prospectively. Furthermore, the guidance requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity, which can be applied retrospectively or prospectively. Under the new guidance, an election can be made regarding whether to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur or estimate the number of awards expected to be forfeited, as is currently required. This guidance is to be applied using a modified retrospective transition method, with a cumulative adjustment to retained earnings. T In February 2016, the FASB issued ASU No. In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. During 2016, the FASB issued ASU 2016-08 ASU 2016-10 “ and ASU 2016-12 which clarify the revenue recognition implementation guidance on principal versus agent considerations, identifying performance obligations, determining whether an entity's promise to grant a license provides a customer with either a right to use or a right to access the entity's intellectual property, assessing the collectability criteria, presentation of sales and similar taxes, noncash consideration and various other items. The amendments in these ASUs affect the guidance in ASU 2014-09, and the effective date and transition requirements are the same as those for ASU 2014-09 which, as amended by ASU Based upon preliminary results of management’s evaluation, the most impactful aspects of the guidance relate to the timing of recognition for the revenue from customized products over time versus at a point in time, as well as inventory billed but not yet shipped. The Company has amounts of customized products in the Variable Print and International segments which are currently recognized when the products are completed and shipped to the customer. Currently, the Company defers revenue for inventory billed but not yet shipped which under the new revenue standard, the Company may be able to recognize revenue for certain inventory billed but not yet shipped. The actual revenue recognition treatment required under this new standard will be dependent on contract specific terms. The Company is still in the process of evaluating and designing the necessary changes to its business processes, systems and controls to support recognition and disclosure under the new standard. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Revision of Net Sales, Cost of Sales and Balance Sheet | The following table presents the impact of the revision on net sales and cost of sales: As Reported Adjustments As Revised Three months ended March 31, 2016 Products net sales $ 1,242.7 $ 13.1 $ 1,229.6 Total net sales 1,645.6 13.1 1,632.5 Products cost of sales 971.9 13.1 958.8 Total cost of sales 1,313.1 13.1 1,300.0 Three months ended June 30, 2016 Products net sales $ 1,231.7 $ 16.6 $ 1,215.1 Total net sales 1,632.6 16.6 1,616.0 Products cost of sales 985.2 16.6 968.6 Total cost of sales 1,316.2 16.6 1,299.6 Three months ended September 30, 2016 Products net sales $ 1,343.4 $ 15.6 $ 1,327.8 Total net sales 1,741.2 15.6 1,725.6 Products cost of sales 1,046.3 15.6 1,030.7 Total cost of sales 1,377.0 15.6 1,361.4 Three months ended December 31, 2016 Products net sales $ 1,470.3 $ 17.4 $ 1,452.9 Total net sales 1,876.3 17.4 1,858.9 Products cost of sales 1,161.0 17.4 1,143.6 Total cost of sales 1,512.6 17.4 1,495.2 Three months ended March 31, 2017 Products net sales $ 1,288.9 $ 17.4 $ 1,271.5 Total net sales 1,676.3 17.4 1,658.9 Products cost of sales 1,024.3 17.4 1,006.9 Total cost of sales 1,348.5 17.4 1,331.1 Three months ended June 30, 2017 Products net sales $ 1,263.4 $ 26.0 $ 1,237.4 Total net sales 1,646.0 26.0 1,620.0 Products cost of sales 1,020.7 26.0 994.7 Total cost of sales 1,342.9 26.0 1,316.9 The following table presents the impact of the related balance sheet revision on the December 31, 2016 Condensed Consolidated Balance Sheet: As Reported Adjustments As Revised Receivables, less allowance for doubtful accounts $ 1,354.4 $ (23.1 ) $ 1,331.3 Inventories 379.6 7.2 386.8 Accounts payable 1,001.2 (15.9 ) 985.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Financial Results of Discontinued Operations | The following details the financial results of discontinued operations: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Net sales $ 1,122.6 $ 3,303.4 Cost of sales 879.1 2,534.7 Operating expenses (a) 170.0 592.0 Interest and other expense net (b) 104.0 139.5 (Loss) earnings before income taxes (30.5 ) 37.2 Income tax (benefit) expense (1.4 ) 21.4 Net (loss) earnings from discontinued operations $ (29.1 ) $ 15.8 (a) Includes spinoff transaction costs incurred of $27.0 million and $57.3 million during the three and nine month periods ended September 30, 2016, respectively. (b) Includes the related interest expense of the corporate level debt which was retired in connection with the Separation totaling $17.8 million and $53.6 million for the three and nine months ended September 30, 2016, respectively. Also includes the losses on the extinguishment of corporate level debt executed in conjunction with the spinoff transactions totaling $85.3 million, for the three and nine months ended September 30, 2016. |
Schedule of Non-Cash Items and Capital Expenditures of Discontinued Operations | The significant non-cash items and capital expenditures of discontinued operations were as follows: Nine Months Ended September 30, 2016 Depreciation and amortization $ 159.0 Pension settlement charges 77.7 Impairment charges 1.5 Loss on debt extinguishments 85.3 Assumption of warehousing equipment related to customer contract 8.8 Purchase of property, plant and equipment 49.0 |
Schedule of Transactions with LSC and Donnelley Financial | The Company also entered into various commercial agreements which govern sales transactions between the companies. Under these commercial agreements, the Company recognized the following transactions with LSC and Donnelley Financial during the three and nine months ended September 30, 2017: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Net sales to LSC and Donnelley Financial $ 67.2 $ 236.3 Purchases from LSC and Donnelley Financial 36.2 105.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, 2017 2016 Raw materials and manufacturing supplies $ 168.6 $ 141.0 Work in process 114.7 84.4 Finished goods 190.1 179.4 LIFO reserve (16.3 ) (18.0 ) Total $ 457.1 $ 386.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of the Company’s property, plant and equipment at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, 2017 2016 Land $ 56.1 $ 56.0 Buildings 415.0 403.0 Machinery and equipment 1,869.2 1,805.4 2,340.3 2,264.4 Less: Accumulated depreciation (1,715.7 ) (1,614.1 ) Total $ 624.6 $ 650.3 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Value of Goodwill by Segment | The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows: Variable Strategic Services International Total Net book value as of December 31, 2016 Goodwill $ 1,823.0 $ 365.2 $ 1,017.9 $ 3,206.1 Accumulated impairment losses (1,550.5 ) (148.7 ) (904.9 ) (2,604.1 ) Total 272.5 216.5 113.0 602.0 Foreign exchange and other adjustments — — 6.9 6.9 Impairment charges — (21.3 ) — (21.3 ) Net book value as of September 30, 2017 Goodwill 1,824.1 365.2 1,090.3 3,279.6 Accumulated impairment losses (1,551.6 ) (170.0 ) (970.4 ) (2,692.0 ) Total $ 272.5 $ 195.2 $ 119.9 $ 587.6 |
Components of Other Intangible Assets | The components of other intangible assets at September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 532.9 $ (404.8 ) $ 128.1 $ 517.9 $ (370.7 ) $ 147.2 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 26.2 (24.9 ) 1.3 26.2 (24.4 ) 1.8 Trade names 36.8 (15.7 ) 21.1 36.8 (13.9 ) 22.9 Total other intangible assets $ 597.9 $ (447.4 ) $ 150.5 $ 582.9 $ (411.0 ) $ 171.9 |
Restructuring, Impairment and32
Restructuring, Impairment and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring, Impairment and Other Charges | For the three months ended September 30, 2017 and 2016, the Company recorded the following net restructuring, impairment and other charges: Three Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Variable Print $ 3.0 $ 0.6 $ 3.6 $ 0.2 $ 0.4 $ 4.2 Strategic Services 0.7 — 0.7 21.3 0.1 22.1 International 1.9 0.3 2.2 — — 2.2 Corporate 5.1 0.2 5.3 — — 5.3 Total $ 10.7 $ 1.1 $ 11.8 $ 21.5 $ 0.5 $ 33.8 Three Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2016 Terminations Charges Charges Impairment Charges Total Variable Print $ 1.1 $ 0.3 $ 1.4 $ — $ 0.5 $ 1.9 Strategic Services 1.2 — 1.2 — 0.1 1.3 International 0.9 0.2 1.1 — — 1.1 Corporate 6.5 0.1 6.6 (0.1 ) — 6.5 Total $ 9.7 $ 0.6 $ 10.3 $ (0.1 ) $ 0.6 $ 10.8 For the nine months ended September 30, 2017 and 2016, the Company recorded the following net restructuring, impairment and other charges: Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2017 Terminations Charges Charges Impairment Charges Total Variable Print $ 4.0 $ 0.9 $ 4.9 $ (0.1 ) $ 1.4 $ 6.2 Strategic Services 1.8 0.3 2.1 21.8 0.3 24.2 International 6.4 2.2 8.6 — — 8.6 Corporate 7.3 0.4 7.7 — — 7.7 Total $ 19.5 $ 3.8 $ 23.3 $ 21.7 $ 1.7 $ 46.7 Nine Months Ended Employee Other Restructuring Total Restructuring Other September 30, 2016 Terminations Charges Charges Impairment Charges Total Variable Print $ 1.5 $ 1.5 $ 3.0 $ 0.3 $ 1.4 $ 4.7 Strategic Services 1.7 — 1.7 — 0.3 2.0 International 7.4 1.3 8.7 (2.5 ) — 6.2 Corporate 10.1 0.1 10.2 1.2 — 11.4 Total $ 20.7 $ 2.9 $ 23.6 $ (1.0 ) $ 1.7 $ 24.3 |
Schedule of Changes in the Restructuring Reserve | The restructuring reserve as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: Foreign December 31, Restructuring Exchange and Cash September 30, 2016 Charges Other Paid 2017 Employee terminations $ 7.6 $ 19.5 $ — $ (13.5 ) $ 13.6 Multi-employer pension withdrawal obligations 11.8 0.6 (0.1 ) (1.1 ) 11.2 Lease terminations and other 1.6 3.2 1.2 (2.8 ) 3.2 Total $ 21.0 $ 23.3 $ 1.1 $ (17.4 ) $ 28.0 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Estimated Net Pension and Other Postretirement Benefit Plan Income | The components of the estimated net pension and other postretirement benefits plan income for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pension (income) expense Service cost $ 0.1 $ 0.3 $ 0.5 $ 0.8 Interest cost 8.0 37.9 23.7 105.3 Expected return on plan assets (12.7 ) (58.2 ) (37.6 ) (171.2 ) Amortization, net 1.9 7.6 5.4 23.4 Settlements and curtailments — 1.6 — 98.0 Less: income (expense) attributable to discontinued operations — 10.2 — (43.3 ) Net pension (income) expense - continuing operations $ (2.7 ) $ (0.6 ) $ (8.0 ) $ 13.0 Other postretirement benefits plan income Service cost $ 0.4 $ 1.0 $ 1.0 $ 3.0 Interest cost 2.7 3.1 8.3 9.2 Expected return on plan assets (3.4 ) (3.4 ) (10.1 ) (10.2 ) Amortization, net (0.7 ) (4.0 ) (2.2 ) (12.0 ) Curtailments — (19.7 ) — (19.7 ) Net other postretirement benefit income - continuing operations $ (1.0 ) $ (23.0 ) $ (3.0 ) $ (29.7 ) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of the Company's Equity Activity | The Company’s equity as of December 31, 2016 and September 30, 2017, and changes during the nine months ended September 30, 2017, were as follows: RRD Stockholders' Noncontrolling Equity Interest Total Equity Balance at December 31, 2016 $ (105.7 ) $ 13.5 $ (92.2 ) Net earnings 18.4 0.7 19.1 Other comprehensive (loss) income (70.8 ) 0.4 (70.4 ) Share-based compensation 6.4 — 6.4 Spinoff adjustments 5.9 — 5.9 Issuance of share-based awards, net of withholdings and other (1.7 ) — (1.7 ) Cash dividends paid (29.4 ) — (29.4 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at September 30, 2017 $ (176.9 ) $ 13.9 $ (163.0 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for three and nine months ended September 30, 2017 and 2016 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.11 ) $ 0.31 $ 0.26 $ 0.03 Discontinued operations — (0.41 ) — 0.23 Net (loss) earnings attributable to RRD stockholders $ (0.11 ) $ (0.10 ) $ 0.26 $ 0.26 Diluted net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.11 ) $ 0.31 $ 0.26 $ 0.03 Discontinued operations — (0.41 ) — 0.23 Net (loss) earnings attributable to RRD stockholders $ (0.11 ) $ (0.10 ) $ 0.26 $ 0.26 Numerator Net (loss) earnings attributable to RRD common stockholders - continuing operations $ (8.0 ) $ 22.0 $ 18.4 $ 2.4 Net (loss) earnings from discontinued operations, net of income taxes — (29.1 ) — 15.8 Net (loss) earnings attributable to RRD common stockholders $ (8.0 ) $ (7.1 ) $ 18.4 $ 18.2 Denominator: Weighted average number of common shares outstanding 70.2 70.0 70.1 70.0 Dilutive options and awards — 0.5 0.2 0.5 Diluted weighted average number of common shares outstanding 70.2 70.5 70.3 70.5 Weighted average number of anti-dilutive share-based awards: Stock options 1.3 0.8 1.0 0.7 Performance share units 0.3 0.2 0.3 0.2 Restricted stock units 1.1 0.3 0.7 — Total 2.7 1.3 2.0 0.9 Dividends declared per common share $ 0.14 $ 0.78 $ 0.42 $ 2.34 |
Other Comprehensive (Loss) In36
Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) and Income Tax (Benefit) Expense Allocated to Each Component | The components of other comprehensive income (loss) and income tax (benefit) expense allocated to each component for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ 17.7 $ — $ 17.7 $ 46.8 $ — $ 46.8 Adjustment for net periodic pension and other postretirement benefits plan cost 1.2 0.5 0.7 3.2 1.1 2.1 Adjustments for available-for-sale securities (1.8 ) — (1.8 ) (122.3 ) (3.0 ) (119.3 ) Other comprehensive income (loss) $ 17.1 $ 0.5 $ 16.6 $ (72.3 ) $ (1.9 ) $ (70.4 ) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Translation adjustments $ (4.4 ) $ — $ (4.4 ) $ (9.0 ) $ — $ (9.0 ) Adjustment for net periodic pension and other postretirement benefits plan cost (32.4 ) (13.0 ) (19.4 ) (16.3 ) (3.0 ) (13.3 ) Other comprehensive loss $ (36.8 ) $ (13.0 ) $ (23.8 ) $ (25.3 ) $ (3.0 ) $ (22.3 ) |
Summary of Changes in Accumulated Other Comprehensive Loss | 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, were as follows: Changes in the Fair Value of Available-for-Sale Securities Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2016 $ 119.3 $ (159.5 ) $ (15.5 ) $ (55.7 ) Other comprehensive (loss) income before reclassifications (48.5 ) — 43.6 (4.9 ) Amounts reclassified from accumulated other comprehensive loss (70.8 ) 2.1 2.8 (65.9 ) Net change in accumulated other comprehensive loss (119.3 ) 2.1 46.4 (70.8 ) Balance at September 30, 2017 $ — $ (157.4 ) $ 30.9 $ (126.5 ) Accumulated other comprehensive loss by component as of December 31, 2015 and September 30, 2016, and changes during the nine months ended September 30, 2016, were as follows: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at December 31, 2015 $ (727.5 ) $ (65.7 ) $ (793.2 ) Other comprehensive loss before reclassifications (69.7 ) (8.5 ) (78.2 ) Amounts reclassified from accumulated other comprehensive loss 55.2 — 55.2 Amounts reclassified due to disposition of a business 1.2 (0.7 ) 0.5 Net change in accumulated other comprehensive loss (13.3 ) (9.2 ) (22.5 ) Balance at September 30, 2016 $ (740.8 ) $ (74.9 ) $ (815.7 ) |
Reclassifications from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification in the Condensed Consolidated 2017 2016 2017 2016 Statements of Operations Translation Adjustments: Net realized loss $ 2.8 — $ 2.8 — Selling, general and administrative expenses Reclassifications before tax 2.8 — 2.8 — Income tax benefit — — — — Reclassification, net of tax $ 2.8 $ — $ 2.8 $ — Amortization of pension and other postretirement benefits plan cost: Net actuarial loss $ 1.9 $ 7.8 $ 5.4 $ 23.5 Cost of sales; Selling, general and administrative expenses Net prior service credit (0.7 ) (4.0 ) (2.2 ) (12.0 ) Cost of sales; Selling, general and administrative expenses Settlements — 1.6 — 98.5 Cost of sales; Selling, general and administrative expenses Curtailments — (19.7 ) — (19.7 ) Cost of sales; Selling, general and administrative expenses Reclassifications before tax 1.2 (14.3 ) 3.2 90.3 Income tax expense (benefit) 0.5 (7.9 ) 1.1 35.1 Reclassification, net of tax $ 0.7 $ (6.4 ) $ 2.1 $ 55.2 Available-for-sale securities: Net realized gain on equity securities (1.8 ) — (52.8 ) — Investment and other income-net Reclassifications before tax (1.8 ) — (52.8 ) — Income tax benefit — — 18.0 — Reclassification, net of tax (1.8 ) — (70.8 ) — Total reclassifications, net of tax $ 1.7 $ (6.4 ) $ (65.9 ) $ 55.2 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2017 Variable Print $ 771.7 $ (4.2 ) $ 767.5 $ 39.3 $ 28.5 $ 6.3 Strategic Services 483.5 (39.8 ) 443.7 (14.8 ) 3.8 (0.2 ) International 532.6 (8.9 ) 523.7 20.6 13.7 11.9 Total operating segments 1,787.8 (52.9 ) 1,734.9 45.1 46.0 18.0 Corporate — — — (9.2 ) 1.0 5.0 Total operations $ 1,787.8 $ (52.9 ) $ 1,734.9 $ 35.9 $ 47.0 $ 23.0 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Three Months Ended September 30, 2016 Variable Print $ 796.8 $ (6.5 ) $ 790.3 $ 50.1 $ 30.5 $ 15.0 Strategic Services 486.9 (41.9 ) 445.0 13.3 4.3 - International 501.5 (11.2 ) 490.3 36.0 14.8 6.3 Total operating segments 1,785.2 (59.6 ) 1,725.6 99.4 49.6 21.3 Corporate — — — (15.4 ) 1.4 7.4 Total operations $ 1,785.2 $ (59.6 ) $ 1,725.6 $ 84.0 $ 51.0 $ 28.7 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Nine Months Ended September 30, 2017 Variable Print $ 2,291.9 $ (12.3 ) $ 2,279.6 $ 114.2 $ 86.2 $ 21.8 Strategic Services 1,394.4 (120.1 ) 1,274.3 (7.0 ) 12.6 6.0 International 1,488.1 (28.2 ) 1,459.9 53.8 41.1 34.3 Total operating segments 5,174.4 (160.6 ) 5,013.8 161.0 139.9 62.1 Corporate — — — (39.1 ) 3.2 15.1 Total operations $ 5,174.4 $ (160.6 ) $ 5,013.8 $ 121.9 $ 143.1 $ 77.2 Income Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Nine Months Ended September 30, 2016 Variable Print $ 2,326.3 $ (14.5 ) $ 2,311.8 $ 144.0 $ 90.5 $ 45.5 Strategic Services 1,343.9 (114.3 ) 1,229.6 25.3 14.0 13.1 International 1,465.7 (33.0 ) 1,432.7 101.8 46.7 23.8 Total operating segments 5,135.9 (161.8 ) 4,974.1 271.1 151.2 82.4 Corporate — — — (104.8 ) 2.3 16.5 Total operations $ 5,135.9 $ (161.8 ) $ 4,974.1 $ 166.3 $ 153.5 $ 98.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of the Company's Debt | The Company’s debt at September 30, 2017 and December 31, 2016 consisted of the following: September 30, December 31, 2017 2016 Borrowings under the Credit Agreement $ 350.0 $ 185.0 11.25% senior notes due February 1, 2019 (a) 172.2 172.2 7.625% senior notes due June 15, 2020 238.4 350.0 7.875% senior notes due March 15, 2021 447.1 448.8 8.875% debentures due April 15, 2021 80.9 80.9 7.00% senior notes due February 15, 2022 140.0 140.0 6.50% senior notes due November 15, 2023 290.6 350.0 6.00% senior notes due April 1, 2024 298.3 400.0 6.625% debentures due April 15, 2029 157.9 199.5 8.820% debentures due April 15, 2031 69.0 69.0 Other (b) 17.9 8.5 Unamortized debt issuance costs (12.2 ) (16.5 ) Total debt 2,250.1 2,387.4 Less: current portion (17.9 ) (8.2 ) Long-term debt $ 2,232.2 $ 2,379.2 (a) As of September 30, 2017 and December 31, 2016, the interest rate on the 11.25% senior notes due February 1, 2019 was 13.25%, the maximum rate on these notes, as a result of ratings downgrades. (b) Includes miscellaneous debt obligations and capital leases. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative [Line Items] | |
Schedule of Fair Value of Derivatives Designated and Not Designated as Hedges | At September 30, 2017 September 30, 2017 December 31, 2016 Derivatives not designated as hedges Prepaid expenses and other current assets $ 1.5 $ 1.7 Accrued liabilities 1.0 1.5 |
Schedule of Pre-Tax Losses Related to Derivatives Not Designated as Hedges | The pre-tax losses related to derivatives not designated as hedges recognized in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Classification of (Gain) Loss Recognized in the September 30, September 30, Condensed 2017 2016 2017 2016 Derivatives not designated as hedges Foreign currency contracts Selling, $ 0.5 $ 0.8 $ 1.1 $ 3.4 |
Fair Value Hedging | |
Derivative [Line Items] | |
Schedule of Pre-Tax (Gains) Losses for Derivatives Designated as Fair Value Hedges | For derivatives designated as fair value hedges, the pre-tax (gains) losses related to the hedged items attributable to changes in the hedged benchmark interest rate and the offsetting (gain) loss on the related interest rate swaps for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Classification of (Gain) Loss Recognized in the September 30, September 30, Condensed 2017 2016 2017 2016 Fair Value Hedges Interest rate swaps Investment and other income-net $ — $ 3.6 $ — $ 0.4 Hedged items Investment and other income-net — (4.3 ) — (0.8 ) Total ineffectiveness recognized Investment and other income-net $ — $ (0.7 ) $ — $ (0.4 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: Basis of Fair Value Measurement Balance as of September 30, 2017 Significant Other Observable Inputs (Level 2) Assets Foreign currency contracts $ 1.5 $ 1.5 Total assets $ 1.5 $ 1.5 Liabilities Foreign currency contracts 1.0 1.0 Total liabilities $ 1.0 $ 1.0 Basis of Fair Value Measurement Balance as of December 31, 2016 Significant Other Observable Inputs (Level 2) Assets Foreign currency contracts $ 1.7 $ 1.7 Available-for-sale securities 328.7 328.7 Total assets $ 330.4 $ 330.4 Liabilities Foreign currency contracts 1.5 1.5 Total liabilities $ 1.5 $ 1.5 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Detail) $ in Millions | Oct. 02, 2016 | Sep. 30, 2016USD ($) | Sep. 30, 2017 | Sep. 30, 2016USD ($) | Oct. 01, 2016Entity |
Basis Of Presentation [Line Items] | |||||
Number of entities resulted from spinoff of an entity | Entity | 2 | ||||
Spinoff | |||||
Basis Of Presentation [Line Items] | |||||
Reverse Stock Split, description | Immediately following the Distribution on October 1, 2016, the Company affected a one-for-three reverse stock split for RRD common stock (the “Reverse Stock Split”). The Reverse Stock Split was approved by the Company’s Board of Directors on September 14, 2016 and previously approved by the Company’s stockholders at the annual meeting on May 19, 2016. | ||||
Reverse Stock Split, conversion ratio | 0.3333 | ||||
Spinoff | Board of Directors | |||||
Basis Of Presentation [Line Items] | |||||
Reverse Stock Split, approval date | Sep. 14, 2016 | ||||
Spinoff | Stockholders | |||||
Basis Of Presentation [Line Items] | |||||
Reverse Stock Split, approval date | May 19, 2016 | ||||
Donnelley Financial Solutions, Inc. | |||||
Basis Of Presentation [Line Items] | |||||
Percentage of tax free distribution of common shares during spinoff | 80.75% | ||||
Stock distribution ratio received in spinoff transaction | 0.125 | ||||
Percentage of outstanding common stock, shares retained | 19.25% | ||||
LSC Communications, Inc. | |||||
Basis Of Presentation [Line Items] | |||||
Percentage of tax free distribution of common shares during spinoff | 80.75% | ||||
Stock distribution ratio received in spinoff transaction | 0.125 | ||||
Percentage of outstanding common stock, shares retained | 19.25% | ||||
Donnelley Financial and LSC | |||||
Basis Of Presentation [Line Items] | |||||
External sales | $ | $ 72.5 | $ 150.4 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Revision of Net Sales and Cost of Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Products net sales | $ 1,322 | $ 1,237.4 | $ 1,271.5 | $ 1,452.9 | $ 1,327.8 | $ 1,215.1 | $ 1,229.6 | $ 3,830.9 | $ 3,772.5 |
Total net sales | 1,734.9 | 1,620 | 1,658.9 | 1,858.9 | 1,725.6 | 1,616 | 1,632.5 | 5,013.8 | 4,974.1 |
Products cost of sales | 1,064.1 | 994.7 | 1,006.9 | 1,143.6 | 1,030.7 | 968.6 | 958.8 | 3,065.7 | 2,958.1 |
Total cost of sales | $ 1,410.5 | 1,316.9 | 1,331.1 | 1,495.2 | 1,361.4 | 1,299.6 | 1,300 | $ 4,058.5 | $ 3,961 |
As Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Products net sales | 1,263.4 | 1,288.9 | 1,470.3 | 1,343.4 | 1,231.7 | 1,242.7 | |||
Total net sales | 1,646 | 1,676.3 | 1,876.3 | 1,741.2 | 1,632.6 | 1,645.6 | |||
Products cost of sales | 1,020.7 | 1,024.3 | 1,161 | 1,046.3 | 985.2 | 971.9 | |||
Total cost of sales | 1,342.9 | 1,348.5 | 1,512.6 | 1,377 | 1,316.2 | 1,313.1 | |||
Adjustments | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Products net sales | 26 | 17.4 | 17.4 | 15.6 | 16.6 | 13.1 | |||
Total net sales | 26 | 17.4 | 17.4 | 15.6 | 16.6 | 13.1 | |||
Products cost of sales | 26 | 17.4 | 17.4 | 15.6 | 16.6 | 13.1 | |||
Total cost of sales | $ 26 | $ 17.4 | $ 17.4 | $ 15.6 | $ 16.6 | $ 13.1 |
Basis of Presentation - Sched43
Basis of Presentation - Schedule of Revision of Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Receivables, less allowance for doubtful accounts | $ 1,382.9 | $ 1,331.3 |
Inventories | 457.1 | 386.8 |
Accounts payable | $ 996.5 | 985.3 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Receivables, less allowance for doubtful accounts | 1,354.4 | |
Inventories | 379.6 | |
Accounts payable | 1,001.2 | |
Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Receivables, less allowance for doubtful accounts | (23.1) | |
Inventories | 7.2 | |
Accounts payable | $ (15.9) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Reduction of costs recognized within selling, general and administrative expenses | $ 1.4 | $ 6.4 | ||||
Net cash inflow from operating activities - discontinued operations | $ 83 | |||||
Maximum | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Transition service agreements term | 24 months | |||||
Donnelley Financial Solutions, Inc. | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Non-cash debt-for-equity exchange, shares | 99,594 | 6,143,208 | ||||
Extinguishment of indebtedness | $ 1.9 | $ 111.6 | ||||
Donnelley Financial Solutions, Inc. | Spinoff | Available-for-Sale Equity Securities | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Number of common shares held | 0 | 0 | 6,200,000 | |||
LSC Communications, Inc. | Investment and Other (Expense ) Income, Net | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Realized loss on sale of shares | $ 51.6 | |||||
LSC Communications, Inc. | Spinoff | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Number of common shares sold | 6,200,000 | |||||
Net proceeds from sale of common shares | $ 121.4 | |||||
LSC Communications, Inc. | Spinoff | Available-for-Sale Equity Securities | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Number of common shares held | 0 | 0 | 6,200,000 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Financial Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net (loss) earnings from discontinued operations | $ (29.1) | $ 15.8 | |
Donnelley Financial Solutions And L S C Communications | Discontinued Operations Spinoff | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net sales | 1,122.6 | 3,303.4 | |
Cost of sales | 879.1 | 2,534.7 | |
Operating expenses | [1] | 170 | 592 |
Interest and other expense net | [2] | 104 | 139.5 |
(Loss) earnings before income taxes | (30.5) | 37.2 | |
Income tax (benefit) expense | (1.4) | 21.4 | |
Net (loss) earnings from discontinued operations | $ (29.1) | $ 15.8 | |
[1] | Includes spinoff transaction costs incurred of $27.0 million and $57.3 million during the three and nine month periods ended September 30, 2016, respectively. | ||
[2] | Includes the related interest expense of the corporate level debt which was retired in connection with the Separation totaling $17.8 million and $53.6 million for the three and nine months ended September 30, 2016, respectively. Also includes the losses on the extinguishment of corporate level debt executed in conjunction with the spinoff transactions totaling $85.3 million, for the three and nine months ended September 30, 2016. |
Discontinued Operations - Sch46
Discontinued Operations - Schedule of Financial Results of Discontinued Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Loss on debt extinguishments | $ 6.5 | $ 20.1 | $ 85.3 | |
Donnelley Financial Solutions And L S C Communications | Discontinued Operations Spinoff | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Spinoff transaction costs | $ 27 | 57.3 | ||
Loss on debt extinguishments | 85.3 | |||
Donnelley Financial Solutions And L S C Communications | Discontinued Operations Spinoff | Corporate Level Debt | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Interest expense | 17.8 | 53.6 | ||
Loss on debt extinguishments | $ 85.3 | $ 85.3 |
Discontinued Operations - Sch47
Discontinued Operations - Schedule of Non-Cash Items and Capital Expenditures of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Pension settlement charges | $ 1.6 | $ 98 | ||
Loss on debt extinguishments | $ 6.5 | $ 20.1 | 85.3 | |
Assumption of warehousing equipment related to customer contract | 8.8 | |||
Donnelley Financial Solutions And L S C Communications | Discontinued Operations Spinoff | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Depreciation and amortization | 159 | |||
Pension settlement charges | 77.7 | |||
Impairment charges | 1.5 | |||
Loss on debt extinguishments | 85.3 | |||
Assumption of warehousing equipment related to customer contract | 8.8 | |||
Purchase of property, plant and equipment | $ 49 |
Discontinued Operations - Sch48
Discontinued Operations - Schedule of Transactions with LSC and Donnelley Financial (Detail) - LSC and Donnelley Financial - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales to LSC and Donnelley Financial | $ 67.2 | $ 236.3 |
Purchases from LSC and Donnelley Financial | $ 36.2 | $ 105.2 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Detail) $ in Millions | Jan. 11, 2016USD ($)Business | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)Business | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 04, 2016USD ($) |
Precision Dialogue Holdings, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash acquired | $ 59.2 | |||||
Variable Print and Strategic Services Segment | Precision Dialogue Holdings, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Sales from acquiree operations | $ 17 | $ 8.4 | $ 44.5 | $ 8.4 | ||
Earnings before income taxes | $ 2.9 | $ 0.6 | $ 4.4 | 0.6 | ||
International | Disposition | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses disposed | Business | 2 | |||||
Net proceeds of disposition of business | $ 13.4 | |||||
Gain (loss) on disposition of business | 12.3 | |||||
International | Disposition | Immaterial Entities | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses disposed | Business | 3 | |||||
Gain (loss) on disposition of business | $ 0.3 | $ 0.3 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 168.6 | $ 141 |
Work in process | 114.7 | 84.4 |
Finished goods | 190.1 | 179.4 |
LIFO reserve | (16.3) | (18) |
Total | $ 457.1 | $ 386.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Land | $ 56.1 | $ 56 |
Buildings | 415 | 403 |
Machinery and equipment | 1,869.2 | 1,805.4 |
Property, plant and equipment, gross | 2,340.3 | 2,264.4 |
Less: Accumulated depreciation | (1,715.7) | (1,614.1) |
Total | $ 624.6 | $ 650.3 |
Property, Plant and Equipment52
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 34.6 | $ 37.6 | $ 105.2 | $ 116.2 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Goodwill gross | $ 3,279.6 | $ 3,279.6 | $ 3,206.1 |
Accumulated impairment losses | (2,692) | (2,692) | (2,604.1) |
Goodwill | 587.6 | 587.6 | 602 |
Foreign exchange and other adjustments | 6.9 | ||
Impairment charges | (21.3) | ||
Variable Print | |||
Goodwill [Line Items] | |||
Goodwill gross | 1,824.1 | 1,824.1 | 1,823 |
Accumulated impairment losses | (1,551.6) | (1,551.6) | (1,550.5) |
Goodwill | 272.5 | 272.5 | 272.5 |
Strategic Services | |||
Goodwill [Line Items] | |||
Goodwill gross | 365.2 | 365.2 | 365.2 |
Accumulated impairment losses | (170) | (170) | (148.7) |
Goodwill | 195.2 | 195.2 | 216.5 |
Impairment charges | (21.3) | (21.3) | |
International | |||
Goodwill [Line Items] | |||
Goodwill gross | 1,090.3 | 1,090.3 | 1,017.9 |
Accumulated impairment losses | (970.4) | (970.4) | (904.9) |
Goodwill | $ 119.9 | 119.9 | $ 113 |
Foreign exchange and other adjustments | $ 6.9 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Other Intangible Assets [Line Items] | ||||
Goodwill impairment non-cash charges | $ 21.3 | |||
Amortization expense for other intangible assets | $ 7.1 | $ 8 | 21.6 | $ 25.7 |
Strategic Services | ||||
Schedule Of Other Intangible Assets [Line Items] | ||||
Goodwill impairment non-cash charges | $ 21.3 | $ 21.3 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | $ 597.9 | $ 582.9 |
Accumulated Amortization, total other intangible assets | (447.4) | (411) |
Net Book Value, total other intangible assets | 150.5 | 171.9 |
Customer Relationships | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 532.9 | 517.9 |
Accumulated Amortization, total other intangible assets | (404.8) | (370.7) |
Net Book Value, total other intangible assets | 128.1 | 147.2 |
Patents | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 2 | 2 |
Accumulated Amortization, total other intangible assets | (2) | (2) |
Trademarks, Licenses and Agreements | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 26.2 | 26.2 |
Accumulated Amortization, total other intangible assets | (24.9) | (24.4) |
Net Book Value, total other intangible assets | 1.3 | 1.8 |
Trade Names | ||
Schedule Of Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 36.8 | 36.8 |
Accumulated Amortization, total other intangible assets | (15.7) | (13.9) |
Net Book Value, total other intangible assets | $ 21.1 | $ 22.9 |
Restructuring, Impairment and56
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | $ 10.7 | $ 9.7 | $ 19.5 | $ 20.7 |
Other Restructuring Charges | 1.1 | 0.6 | 3.8 | 2.9 |
Total Restructuring Charges | 11.8 | 10.3 | 23.3 | 23.6 |
Impairment | 21.5 | (0.1) | 21.7 | (1) |
Other Charges | 0.5 | 0.6 | 1.7 | 1.7 |
Total | 33.8 | 10.8 | 46.7 | 24.3 |
Total Operating Segments | Variable Print | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 3 | 1.1 | 4 | 1.5 |
Other Restructuring Charges | 0.6 | 0.3 | 0.9 | 1.5 |
Total Restructuring Charges | 3.6 | 1.4 | 4.9 | 3 |
Impairment | 0.2 | (0.1) | 0.3 | |
Other Charges | 0.4 | 0.5 | 1.4 | 1.4 |
Total | 4.2 | 1.9 | 6.2 | 4.7 |
Total Operating Segments | Strategic Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0.7 | 1.2 | 1.8 | 1.7 |
Other Restructuring Charges | 0.3 | |||
Total Restructuring Charges | 0.7 | 1.2 | 2.1 | 1.7 |
Impairment | 21.3 | 21.8 | ||
Other Charges | 0.1 | 0.1 | 0.3 | 0.3 |
Total | 22.1 | 1.3 | 24.2 | 2 |
Total Operating Segments | International | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 1.9 | 0.9 | 6.4 | 7.4 |
Other Restructuring Charges | 0.3 | 0.2 | 2.2 | 1.3 |
Total Restructuring Charges | 2.2 | 1.1 | 8.6 | 8.7 |
Impairment | (2.5) | |||
Total | 2.2 | 1.1 | 8.6 | 6.2 |
Corporate | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 5.1 | 6.5 | 7.3 | 10.1 |
Other Restructuring Charges | 0.2 | 0.1 | 0.4 | 0.1 |
Total Restructuring Charges | 5.3 | 6.6 | 7.7 | 10.2 |
Impairment | (0.1) | 1.2 | ||
Total | $ 5.3 | $ 6.5 | $ 7.7 | $ 11.4 |
Restructuring, Impairment and57
Restructuring, Impairment and Other Charges - Narrative (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)Facility | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)Facility | Dec. 31, 2016USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Employee termination costs | $ 10,700,000 | $ 9,700,000 | $ 19,500,000 | $ 20,700,000 | |
Impairment charges | 21,500,000 | (100,000) | 21,700,000 | (1,000,000) | |
Goodwill impairment charges | 21,300,000 | ||||
Goodwill | 587,600,000 | 587,600,000 | $ 602,000,000 | ||
Other restructuring charges | 1,100,000 | $ 600,000 | 3,800,000 | $ 2,900,000 | |
Number of facilities closed | Facility | 2 | 2 | |||
Strategic Services | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Goodwill impairment charges | 21,300,000 | 21,300,000 | |||
Goodwill | 195,200,000 | 195,200,000 | $ 216,500,000 | ||
Strategic Services | Digital And Creative Solutions | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment charges | (21,500,000) | (21,700,000) | |||
Goodwill impairment charges | 21,300,000 | 21,300,000 | |||
Goodwill | $ 0 | $ 0 |
Restructuring, Impairment and58
Restructuring, Impairment and Other Charges - Other Charges - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||||
Other Charges | $ 0.5 | $ 0.6 | $ 1.7 | $ 1.7 | |
Accrued liabilities | 463.9 | 463.9 | $ 541.7 | ||
Other noncurrent liabilities | 175.8 | 175.8 | $ 193.1 | ||
Multi-employer pension plan withdrawal obligations | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Other Charges | 0.5 | $ 0.6 | 1.7 | $ 1.7 | |
Accrued liabilities | 5.1 | 5.1 | |||
Other noncurrent liabilities | $ 32.4 | $ 32.4 |
Restructuring, Impairment and59
Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | $ 21 | |||
Restructuring Charges | $ 11.8 | $ 10.3 | 23.3 | $ 23.6 |
Foreign Exchange and Other | 1.1 | |||
Cash Paid | (17.4) | |||
Balance at the end | 28 | 28 | ||
Employee terminations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 7.6 | |||
Restructuring Charges | 19.5 | |||
Cash Paid | (13.5) | |||
Balance at the end | 13.6 | 13.6 | ||
Lease terminations and other | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 1.6 | |||
Restructuring Charges | 3.2 | |||
Foreign Exchange and Other | 1.2 | |||
Cash Paid | (2.8) | |||
Balance at the end | 3.2 | 3.2 | ||
Multi-employer pension plan withdrawal obligations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 11.8 | |||
Restructuring Charges | 0.6 | |||
Foreign Exchange and Other | (0.1) | |||
Cash Paid | (1.1) | |||
Balance at the end | $ 11.2 | $ 11.2 |
Restructuring, Impairment and60
Restructuring, Impairment and Other Charges - Restructuring Reserve - Narrative (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Restructuring And Related Activities [Abstract] | |
Current restructuring reserve (included in accrued liabilities) | $ 14.4 |
Noncurrent restructuring reserve (included in noncurrent liabilities) | $ 13.6 |
Employee Benefits - Components
Employee Benefits - Components of Estimated Net Pension and Other Postretirement Benefit Plan Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements and curtailments | $ 78.8 | |||
Pension (income) expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.1 | $ 0.3 | $ 0.5 | 0.8 |
Interest cost | 8 | 37.9 | 23.7 | 105.3 |
Expected return on plan assets | (12.7) | (58.2) | (37.6) | (171.2) |
Amortization, net | 1.9 | 7.6 | 5.4 | 23.4 |
Settlements and curtailments | 1.6 | 98 | ||
Pension (income) expense | Discontinued Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit (income) expense | 10.2 | (43.3) | ||
Pension (income) expense | Continuing operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit (income) expense | (2.7) | (0.6) | (8) | 13 |
Other postretirement benefits plan income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.4 | 1 | 1 | 3 |
Interest cost | 2.7 | 3.1 | 8.3 | 9.2 |
Expected return on plan assets | (3.4) | (3.4) | (10.1) | (10.2) |
Amortization, net | (0.7) | (4) | (2.2) | (12) |
Curtailments | (19.7) | (19.7) | ||
Other postretirement benefits plan income | Continuing operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit (income) expense | $ (1) | $ (23) | $ (3) | $ (29.7) |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to benefit plans | $ 12.4 | ||
Pension and other post retirement total non-cash settlement expense | $ 1.6 | $ 98 | |
Selling, General and Administrative Expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other post retirement total non-cash settlement expense | 0.3 | 20.7 | |
Income from Discontinued Operations, Net of Tax | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other post retirement total non-cash settlement expense | 1.3 | 77.3 | |
Pension and Retirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement expected contributions in current year | $ 17 | ||
Other Postretirement Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 19.7 | 19.7 | |
Other Postretirement Benefit Obligation | Selling, General and Administrative Expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 3.3 | 3.3 | |
Other Postretirement Benefit Obligation | Cost of Sales | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | $ 16.4 | $ 16.4 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 6.4 | $ 13.4 | |||
Restricted stock units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual share-based compensation grants | 569,594 | 102,191 | |||
Grant date fair value | $ 16.30 | $ 11.77 | |||
Graded vesting period | 3 years | ||||
Weighted average vesting period | 1 year 6 months | ||||
Performance share units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual share-based compensation grants | 304,425 | ||||
Grant date fair value | $ 16.30 | ||||
Cliff vesting period | 34 months | ||||
Continuing operations | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 2.1 | $ 2.1 | $ 6.4 | $ 7.9 |
Equity - Schedule of the Compan
Equity - Schedule of the Company's Equity Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Line Items] | ||||
Beginning Balance | $ (92.2) | |||
Net earnings | $ (7.8) | $ (6.8) | 19.1 | $ 19 |
Other comprehensive (loss) income | 16.6 | $ (23.8) | (70.4) | $ (22.3) |
Share-based compensation | 6.4 | |||
Spinoff adjustments | 5.9 | |||
Issuance of share-based awards, net of withholdings and other | (1.7) | |||
Cash dividends paid | (29.4) | |||
Distributions to noncontrolling interests | (0.7) | |||
Ending Balance | (163) | (163) | ||
Total RRD Stockholders' Equity | ||||
Equity [Line Items] | ||||
Beginning Balance | (105.7) | |||
Net earnings | 18.4 | |||
Other comprehensive (loss) income | (70.8) | |||
Share-based compensation | 6.4 | |||
Spinoff adjustments | 5.9 | |||
Issuance of share-based awards, net of withholdings and other | (1.7) | |||
Cash dividends paid | (29.4) | |||
Distributions to noncontrolling interests | 0 | |||
Ending Balance | (176.9) | (176.9) | ||
Noncontrolling Interests | ||||
Equity [Line Items] | ||||
Beginning Balance | 13.5 | |||
Net earnings | 0.7 | |||
Other comprehensive (loss) income | 0.4 | |||
Share-based compensation | 0 | |||
Spinoff adjustments | 0 | |||
Issuance of share-based awards, net of withholdings and other | 0 | |||
Cash dividends paid | 0 | |||
Distributions to noncontrolling interests | (0.7) | |||
Ending Balance | $ 13.9 | $ 13.9 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Detail) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Treasury stock, shares acquired | 0 | 0 |
Earnings per Share - Earnings p
Earnings per Share - Earnings per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic net (loss) earnings per share attributable to RRD common stockholders: | ||||
Continuing operations | $ (0.11) | $ 0.31 | $ 0.26 | $ 0.03 |
Discontinued operations | (0.41) | 0.23 | ||
Net (loss) earnings attributable to RRD stockholders | (0.11) | (0.10) | 0.26 | 0.26 |
Diluted net (loss) earnings per share attributable to RRD common stockholders: | ||||
Continuing operations | (0.11) | 0.31 | 0.26 | 0.03 |
Discontinued operations | (0.41) | 0.23 | ||
Net (loss) earnings attributable to RRD stockholders | $ (0.11) | $ (0.10) | $ 0.26 | $ 0.26 |
Net (loss) earnings attributable to RRD common stockholders - continuing operations | $ (8) | $ 22 | $ 18.4 | $ 2.4 |
Net (loss) earnings from discontinued operations, net of income taxes | 0 | (29.1) | 0 | 15.8 |
Net (loss) earnings attributable to RRD common stockholders | $ (8) | $ (7.1) | $ 18.4 | $ 18.2 |
Weighted average number of common shares outstanding | 70.2 | 70 | 70.1 | 70 |
Dilutive options and awards | 0 | 0.5 | 0.2 | 0.5 |
Diluted weighted average number of common shares outstanding | 70.2 | 70.5 | 70.3 | 70.5 |
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 2.7 | 1.3 | 2 | 0.9 |
Dividends declared per common share | $ 0.14 | $ 0.78 | $ 0.42 | $ 2.34 |
Stock options | ||||
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 1.3 | 0.8 | 1 | 0.7 |
Performance share units | ||||
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.3 | 0.2 | 0.3 | 0.2 |
Restricted stock units | ||||
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 1.1 | 0.3 | 0.7 | 0 |
Other Comprehensive (Loss) In67
Other Comprehensive (Loss) Income - Schedule of Components of Other Comprehensive Income (Loss) and Income Tax (Benefit) Expense Allocated to Each Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income, Before Tax Amount | $ 17.1 | $ (36.8) | $ (72.3) | $ (25.3) |
Other comprehensive (loss) income, Income Tax Expense | 0.5 | (13) | (1.9) | (3) |
Other comprehensive income (loss) | 16.6 | (23.8) | (70.4) | (22.3) |
Translation adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income, Before Tax Amount | 17.7 | (4.4) | 46.8 | (9) |
Other comprehensive (loss) income, Income Tax Expense | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 17.7 | (4.4) | 46.8 | (9) |
Adjustment for net periodic pension and other postretirement benefits plan cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income, Before Tax Amount | 1.2 | (32.4) | 3.2 | (16.3) |
Other comprehensive (loss) income, Income Tax Expense | 0.5 | (13) | 1.1 | (3) |
Other comprehensive income (loss) | 0.7 | $ (19.4) | 2.1 | $ (13.3) |
Adjustments for available-for-sale securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income, Before Tax Amount | (1.8) | (122.3) | ||
Other comprehensive (loss) income, Income Tax Expense | 0 | (3) | ||
Other comprehensive income (loss) | $ (1.8) | $ (119.3) |
Other Comprehensive (Loss) In68
Other Comprehensive (Loss) Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (92.2) | |||
Amounts reclassified from accumulated other comprehensive loss | $ 1.7 | $ (6.4) | (65.9) | $ 55.2 |
Other comprehensive income (loss) | 16.6 | (23.8) | (70.4) | (22.3) |
Ending Balance | (163) | (163) | ||
Changes in the Fair Value of Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 119.3 | |||
Other comprehensive (loss) income before reclassifications | (48.5) | |||
Amounts reclassified from accumulated other comprehensive loss | (1.8) | (70.8) | ||
Other comprehensive income (loss) | (119.3) | |||
Ending Balance | 0 | 0 | ||
Pension and Other Postretirement Benefits Plan Cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (159.5) | (727.5) | ||
Other comprehensive (loss) income before reclassifications | 0 | (69.7) | ||
Amounts reclassified from accumulated other comprehensive loss | 0.7 | (6.4) | 2.1 | 55.2 |
Amounts reclassified due to disposition of a business | 1.2 | |||
Other comprehensive income (loss) | 2.1 | (13.3) | ||
Ending Balance | (157.4) | (740.8) | (157.4) | (740.8) |
Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (15.5) | (65.7) | ||
Other comprehensive (loss) income before reclassifications | 43.6 | (8.5) | ||
Amounts reclassified from accumulated other comprehensive loss | 2.8 | 2.8 | 0 | |
Amounts reclassified due to disposition of a business | (0.7) | |||
Other comprehensive income (loss) | 46.4 | (9.2) | ||
Ending Balance | 30.9 | (74.9) | 30.9 | (74.9) |
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (55.7) | (793.2) | ||
Other comprehensive (loss) income before reclassifications | (4.9) | (78.2) | ||
Amounts reclassified from accumulated other comprehensive loss | (65.9) | 55.2 | ||
Amounts reclassified due to disposition of a business | 0.5 | |||
Other comprehensive income (loss) | (70.8) | (22.5) | ||
Ending Balance | $ (126.5) | $ (815.7) | $ (126.5) | $ (815.7) |
Other Comprehensive (Loss) In69
Other Comprehensive (Loss) Income - Schedule of Reclassification From Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, net of tax | $ 1.7 | $ (6.4) | $ (65.9) | $ 55.2 |
Investment and other income net | 2.8 | 1 | 47.2 | 0.4 |
Net Realized Loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | 2.8 | 2.8 | ||
Net Actuarial Loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales; Selling, general and administrative expenses | 1.9 | 7.8 | 5.4 | 23.5 |
Translation Adjustments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | 2.8 | 2.8 | ||
Reclassification, net of tax | 2.8 | 2.8 | 0 | |
Net Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales; Selling, general and administrative expenses | (0.7) | (4) | (2.2) | (12) |
Settlements | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales; Selling, general and administrative expenses | 1.6 | 98.5 | ||
Curtailments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales; Selling, general and administrative expenses | (19.7) | (19.7) | ||
Amortization of Pension and Other Postretirement Benefits Plan Cost | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | 1.2 | (14.3) | 3.2 | 90.3 |
Income tax expense (benefit) | (0.5) | 7.9 | (1.1) | (35.1) |
Reclassification, net of tax | 0.7 | $ (6.4) | 2.1 | $ 55.2 |
Available-for-Sale Securities, Net Realized Gain on Equity Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | (1.8) | (52.8) | ||
Income tax expense (benefit) | 18 | |||
Reclassification, net of tax | (1.8) | (70.8) | ||
Available-for-Sale Securities, Net Realized Gain on Equity Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment and other income net | $ 1.8 | $ 52.8 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||
Net Sales | $ 1,734.9 | $ 1,620 | $ 1,658.9 | $ 1,858.9 | $ 1,725.6 | $ 1,616 | $ 1,632.5 | $ 5,013.8 | $ 4,974.1 |
Income (Loss) from Operations | 35.9 | 84 | 121.9 | 166.3 | |||||
Assets of Operations | 3,956.7 | $ 4,268.8 | 3,956.7 | ||||||
Depreciation and amortization | 47 | 51 | 143.1 | 153.5 | |||||
Capital Expenditures | 77.2 | 147.9 | |||||||
Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 47 | 51 | 143.1 | 153.5 | |||||
Capital Expenditures | 23 | 28.7 | 77.2 | 98.9 | |||||
Total Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total Sales | 1,787.8 | 1,785.2 | 5,174.4 | 5,135.9 | |||||
Income (Loss) from Operations | 45.1 | 99.4 | 161 | 271.1 | |||||
Total Operating Segments | Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 46 | 49.6 | 139.9 | 151.2 | |||||
Capital Expenditures | 18 | 21.3 | 62.1 | 82.4 | |||||
Intersegment Sales | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | (52.9) | (59.6) | (160.6) | (161.8) | |||||
Corporate | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income (Loss) from Operations | (9.2) | (15.4) | (39.1) | (104.8) | |||||
Corporate | Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 1 | 1.4 | 3.2 | 2.3 | |||||
Capital Expenditures | 5 | 7.4 | 15.1 | 16.5 | |||||
Variable Print | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | 767.5 | 790.3 | 2,279.6 | 2,311.8 | |||||
Variable Print | Total Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total Sales | 771.7 | 796.8 | 2,291.9 | 2,326.3 | |||||
Income (Loss) from Operations | 39.3 | 50.1 | 114.2 | 144 | |||||
Variable Print | Total Operating Segments | Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 28.5 | 30.5 | 86.2 | 90.5 | |||||
Capital Expenditures | 6.3 | 15 | 21.8 | 45.5 | |||||
Variable Print | Intersegment Sales | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | (4.2) | (6.5) | (12.3) | (14.5) | |||||
Strategic Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | 443.7 | 445 | 1,274.3 | 1,229.6 | |||||
Strategic Services | Total Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total Sales | 483.5 | 486.9 | 1,394.4 | 1,343.9 | |||||
Income (Loss) from Operations | (14.8) | 13.3 | (7) | 25.3 | |||||
Strategic Services | Total Operating Segments | Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 3.8 | 4.3 | 12.6 | 14 | |||||
Capital Expenditures | (0.2) | 6 | 13.1 | ||||||
Strategic Services | Intersegment Sales | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | (39.8) | (41.9) | (120.1) | (114.3) | |||||
International | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | 523.7 | 490.3 | 1,459.9 | 1,432.7 | |||||
International | Total Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total Sales | 532.6 | 501.5 | 1,488.1 | 1,465.7 | |||||
Income (Loss) from Operations | 20.6 | 36 | 53.8 | 101.8 | |||||
International | Total Operating Segments | Continuing operations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 13.7 | 14.8 | 41.1 | 46.7 | |||||
Capital Expenditures | 11.9 | 6.3 | 34.3 | 23.8 | |||||
International | Intersegment Sales | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net Sales | $ (8.9) | $ (11.2) | $ (28.2) | $ (33) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | Sep. 30, 2017Facility |
Commitments And Contingencies Disclosure [Abstract] | |
Number of sites cited as potentially responsible party | 3 |
Number of previously and currently owned sites with potential remediation obligations | 7 |
Debt - Schedule of the Company'
Debt - Schedule of the Company's Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Borrowings under the Credit Agreement | $ 350 | $ 185 | |
Other | [1] | 17.9 | 8.5 |
Unamortized debt issuance costs | (12.2) | (16.5) | |
Total debt | 2,250.1 | 2,387.4 | |
Less: current portion | (17.9) | (8.2) | |
Long-term debt | 2,232.2 | 2,379.2 | |
11.25% Senior Notes Due February 1, 2019 | |||
Debt Instrument [Line Items] | |||
Senior notes | [2] | 172.2 | 172.2 |
7.625% Senior Notes Due June 15, 2020 | |||
Debt Instrument [Line Items] | |||
Senior notes | 238.4 | 350 | |
7.875% Senior Notes Due March 15, 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes | 447.1 | 448.8 | |
8.875% Debentures Due April 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debentures | 80.9 | 80.9 | |
7.00% Senior Notes Due February 15, 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes | 140 | 140 | |
6.50% Senior Notes Due November 15, 2023 | |||
Debt Instrument [Line Items] | |||
Senior notes | 290.6 | 350 | |
6.00% Senior Notes Due April 1, 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes | 298.3 | 400 | |
6.625% Debentures Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Debentures | 157.9 | 199.5 | |
8.820% Debentures Due April 15, 2031 | |||
Debt Instrument [Line Items] | |||
Debentures | $ 69 | $ 69 | |
[1] | Includes miscellaneous debt obligations and capital leases. | ||
[2] | As of September 30, 2017 and December 31, 2016, the interest rate on the 11.25% senior notes due February 1, 2019 was 13.25%, the maximum rate on these notes, as a result of ratings downgrades. |
Debt - Schedule of the Compan73
Debt - Schedule of the Company's Debt (Parenthetical) (Detail) | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Jun. 07, 2017 | Dec. 31, 2016 | |
11.25% Senior Notes Due February 1, 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 11.25% | |||
Maturity date | Feb. 1, 2019 | |||
11.25% Senior Notes Due February 1, 2019 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 13.25% | 13.25% | ||
7.625% Senior Notes Due June 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.625% | |||
Maturity date | Jun. 15, 2020 | |||
7.875% Senior Notes Due March 15, 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.875% | |||
Maturity date | Mar. 15, 2021 | |||
8.875% Debentures Due April 15, 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 8.875% | |||
Maturity date | Apr. 15, 2021 | |||
7.00% Senior Notes Due February 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.00% | |||
Maturity date | Feb. 15, 2022 | |||
6.50% Senior Notes Due November 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.50% | |||
Maturity date | Nov. 15, 2023 | |||
6.00% Senior Notes Due April 1, 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.00% | 6.00% | ||
Maturity date | Apr. 1, 2024 | |||
6.625% Debentures Due April 15, 2029 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.625% | 6.625% | ||
Maturity date | Apr. 15, 2029 | |||
8.820% Debentures Due April 15, 2031 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 8.82% | |||
Maturity date | Apr. 15, 2031 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) | Sep. 29, 2017 | Aug. 04, 2017 | Jun. 21, 2017 | Aug. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 07, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||||
Amount of difference between fair value and book value | $ 38,900,000 | $ 38,900,000 | $ 4,300,000 | ||||||||
Gain (loss) on repurchase of debt instrument | (6,500,000) | $ (20,100,000) | $ (85,300,000) | ||||||||
Weighted average interest rate on borrowings | 3.70% | 2.20% | |||||||||
Debt instrument, repurchase date | Jun. 7, 2017 | ||||||||||
Interest income from investments/other | $ 800,000 | $ 1,900,000 | $ 2,300,000 | $ 3,800,000 | |||||||
Donnelley Financial Solutions, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-cash debt-for-equity exchange, shares | 99,594 | 6,143,208 | |||||||||
Extinguishment of indebtedness | $ 1,900,000 | $ 111,600,000 | |||||||||
Third Party Purchase Notes | Donnelley Financial Solutions, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-cash debt-for-equity exchange, shares | 6,143,208 | ||||||||||
6.625% Debentures Due April 15, 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 15, 2029 | ||||||||||
Debt instrument, repurchase amount | $ 41,700,000 | ||||||||||
Interest rate | 6.625% | 6.625% | 6.625% | ||||||||
6.50% Senior Notes Due November 15, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Nov. 15, 2023 | ||||||||||
Debt instrument, repurchase amount | $ 59,400,000 | ||||||||||
Interest rate | 6.50% | 6.50% | |||||||||
6.00% Senior Notes Due April 1, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 1, 2024 | ||||||||||
Debt instrument, repurchase amount | 101,700,000 | ||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | ||||||||
6.625% Debentures , 6.50% and 6.00% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on repurchase of debt instrument | $ 800,000 | ||||||||||
7.625% Senior Notes Due June 15, 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Jun. 15, 2020 | ||||||||||
Interest rate | 7.625% | 7.625% | |||||||||
7.625% Senior Notes Due June 15, 2020 | Investment and Other (Expense ) Income, Net | Donnelley Financial Solutions, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net realized gain from disposition of retained shares | $ 92,400,000 | ||||||||||
7.625% Senior Notes Due June 15, 2020 | Third Party Purchase Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, repurchase amount | $ 111,600,000 | ||||||||||
7.625% Senior Notes Due June 15, 2020 | Cancellation of Third Party Purchase Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on repurchase of debt instrument | $ (14,400,000) | ||||||||||
7.875% Senior Notes Due March 15, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Mar. 15, 2021 | ||||||||||
Interest rate | 7.875% | 7.875% | |||||||||
7.875% Senior Notes Due March 15, 2021 | Investment and Other (Expense ) Income, Net | Donnelley Financial Solutions, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net realized gain from disposition of retained shares | $ 1,600,000 | $ 1,600,000 | |||||||||
7.875% Senior Notes Due March 15, 2021 | Third Party Purchase Notes | Donnelley Financial Solutions, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-cash debt-for-equity exchange, shares | 99,594 | ||||||||||
Extinguishment of indebtedness | $ 1,900,000 | ||||||||||
7.875% Senior Notes Due March 15, 2021 | Cancellation of Third Party Purchase Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on repurchase of debt instrument | (300,000) | $ (300,000) | |||||||||
Credit Agreements | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit maximum borrowing base capacity | $ 200,000,000 | ||||||||||
Line of credit borrowing capacity description | The amount available to be borrowed under the Credit Agreement is equal to the lesser of (a) $800.0 million and (b) the aggregate amount of accounts receivable, inventory, machinery and equipment and fee-owned real estate of the Company and certain of its domestic subsidiaries (the “Guarantors”) (collectively, the “Borrowing Base”), subject to certain eligibility criteria and advance rates. The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base cannot exceed $200.0 million. | ||||||||||
Gain (loss) on repurchase of debt instrument | $ (6,200,000) | ||||||||||
Accrued financing fees | $ 600,000 | $ 600,000 | |||||||||
Maturity date | Sep. 29, 2022 | ||||||||||
Percentage of collateralize equity interest on first-tier foreign subsidiaries | 65.00% | ||||||||||
Credit Agreements | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unused line fee | 0.25% | ||||||||||
Credit Agreements | Minimum | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin on borrowings | 0.25% | ||||||||||
Credit Agreements | Minimum | Eurocurrency | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin on borrowings | 1.25% | ||||||||||
Credit Agreements | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unused line fee | 0.375% | ||||||||||
Credit Agreements | Maximum | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin on borrowings | 0.50% | ||||||||||
Credit Agreements | Maximum | Eurocurrency | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin on borrowings | 1.50% | ||||||||||
Credit Agreements | Senior Secured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | $ 800,000,000 | |||||||||
Credit Agreements | Senior Secured Asset-based Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective income tax rate | 31.00% | 38.40% | (63.20%) | 80.10% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Detail) - USD ($) $ in Millions | Mar. 13, 2012 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2016 |
Derivative [Line Items] | ||||||
Repayment of debt | $ 200.9 | $ 786.6 | ||||
Fair Value Hedging | ||||||
Derivative [Line Items] | ||||||
Reduction to interest expense | $ (0.2) | $ (1) | ||||
8.25% Senior Notes Due March 15, 2019 | ||||||
Derivative [Line Items] | ||||||
Senior notes | $ 450 | |||||
Interest rate | 8.25% | 8.25% | 8.25% | |||
Maturity date | Mar. 15, 2019 | Mar. 15, 2019 | ||||
Repayment of debt | $ 211.1 | |||||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Terminated portion of interest rate swap agreement, notional amount | $ 190 | 210 | ||||
Payment for termination of interest rate swaps | $ 4.2 | |||||
Cash received for termination of interest rate swaps | $ 2.5 | |||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Aggregate notional value | $ 136.7 | $ 172.2 | ||||
Designated Fair Value Hedges | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Aggregate notional value | $ 400 | |||||
Derivative, inception date | Mar. 13, 2012 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivatives Designated and Not Designated as Hedges (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | $ 1.5 | $ 1.7 |
Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives liabilities | $ 1 | $ 1.5 |
Derivatives - Schedule of Pre-T
Derivatives - Schedule of Pre-Tax Losses Related to Derivatives Not Designated as Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Selling, General and Administrative Expenses | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
(Gain) loss related to derivatives | $ 0.5 | $ 0.8 | $ 1.1 | $ 3.4 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains (Losses) for Derivatives Designated as Fair Value Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Derivative Instruments Gain Loss [Line Items] | ||
(Gain) loss recognized as ineffectiveness | $ (0.7) | $ (0.4) |
Interest Rate Swap | Investment and other income-net | Designated Fair Value Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
(Gain) loss recognized as ineffectiveness | 3.6 | 0.4 |
Hedged Items | Investment and other income-net | Designated Fair Value Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
(Gain) loss recognized as ineffectiveness | $ (4.3) | $ (0.8) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets | $ 1.5 | $ 330.4 |
Liabilities | ||
Total liabilities | 1 | 1.5 |
Foreign Exchange Contract | ||
Assets | ||
Total assets | 1.5 | 1.7 |
Liabilities | ||
Total liabilities | 1 | 1.5 |
Available-for-sale Securities | ||
Assets | ||
Total assets | 328.7 | |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total assets | 1.5 | 330.4 |
Liabilities | ||
Total liabilities | 1 | 1.5 |
Significant Other Observable Inputs (Level 2) | Foreign Exchange Contract | ||
Assets | ||
Total assets | 1.5 | 1.7 |
Liabilities | ||
Total liabilities | $ 1 | 1.5 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | ||
Assets | ||
Total assets | $ 328.7 |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Detail) - Accounting Standards Update 2017-07 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
New accounting pronouncement effect on operating results | $ (4.2) | $ (12.5) |
Other Non-operating Income [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Effect on other non-operating income from the adoption of a new accounting pronouncement | $ 4.2 | $ 12.5 |