Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | 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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 70.4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 247 | $ 273.4 |
Receivables, less allowances for doubtful accounts of $32.8 in 2018 (2017 - $32.4) | 1,359.5 | 1,417.6 |
Inventories (Note 3) | 361.8 | 416.8 |
Prepaid expenses and other current assets | 176.9 | 109.1 |
Total current assets | 2,145.2 | 2,216.9 |
Property, plant and equipment-net (Note 4) | 545.7 | 615.1 |
Goodwill (Note 5) | 554.3 | 588.5 |
Other intangible assets-net (Note 5) | 120.2 | 143.3 |
Deferred income taxes | 66.1 | 81.7 |
Other noncurrent assets | 266.5 | 259 |
Total assets | 3,698 | 3,904.5 |
LIABILITIES | ||
Accounts payable | 897.6 | 1,094.7 |
Accrued liabilities and other | 390.5 | 447.5 |
Short-term and current portion of long-term debt (Note 14) | 222 | 10.8 |
Total current liabilities | 1,510.1 | 1,553 |
Long-term debt (Note 14) | 1,955.3 | 2,098.9 |
Pension liabilities | 83.1 | 102.7 |
Other postretirement benefits plan liabilities | 97.2 | 113.2 |
Long-term income tax liability | 69.7 | 59.4 |
Other noncurrent liabilities | 202.1 | 180.2 |
Total liabilities | 3,917.5 | 4,107.4 |
Commitments and Contingencies (Note 13) | ||
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 2018 and 2017 | 0.9 | 0.9 |
Additional paid-in-capital | 3,412.3 | 3,444 |
Accumulated deficit | (2,200.8) | (2,225.7) |
Accumulated other comprehensive loss | (150.5) | (103.7) |
Treasury stock, at cost, 18.6 shares in 2018 (2017 - 18.9 shares) | (1,295.8) | (1,333.1) |
Total RRD stockholders' equity | (233.9) | (217.6) |
Noncontrolling interests | 14.4 | 14.7 |
Total equity | (219.5) | (202.9) |
Total liabilities and equity | $ 3,698 | $ 3,904.5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 32.8 | $ 32.4 |
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 | 18,600,000 | 18,900,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total net sales | $ 1,649.5 | $ 1,734.9 | $ 5,036.8 | $ 5,013.8 |
Total cost of sales | 1,334.1 | 1,411.4 | 4,136.1 | 4,061.5 |
Total gross profit | 315.4 | 323.5 | 900.7 | 952.3 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 203.8 | 210.9 | 626.4 | 653 |
Restructuring and other-net (Note 6) | 11 | 33.8 | 22.8 | 46.7 |
Depreciation and amortization | 44.2 | 47 | 137.5 | 143.1 |
Other operating income | (4.5) | (4.6) | ||
Income from operations | 60.9 | 31.8 | 118.6 | 109.5 |
Interest expense-net | 42 | 43.5 | 125.7 | 137.3 |
Investment and other income-net | (5.5) | (6.9) | (14.7) | (59.6) |
Loss on debt extinguishment | 6.5 | 0.1 | 20.1 | |
Income (loss) before income taxes | 24.4 | (11.3) | 7.5 | 11.7 |
Income tax benefit | (10.4) | (3.5) | (5.4) | (7.4) |
Net income (loss) | 34.8 | (7.8) | 12.9 | 19.1 |
Less: Income attributable to noncontrolling interests | 0.5 | 0.2 | 1.2 | 0.7 |
Net income (loss) attributable to RRD common stockholders | $ 34.3 | $ (8) | $ 11.7 | $ 18.4 |
Net income (loss) per share attributable to RRD common stockholders (Note 10): | ||||
Basic net income (loss) per share | $ 0.49 | $ (0.11) | $ 0.17 | $ 0.26 |
Diluted net income (loss) per share | 0.49 | (0.11) | 0.17 | 0.26 |
Dividends declared per common share | $ 0.03 | $ 0.14 | $ 0.31 | $ 0.42 |
Weighted average number of common shares outstanding: | ||||
Basic | 70.6 | 70.2 | 70.5 | 70.1 |
Diluted | 70.7 | 70.2 | 70.8 | 70.3 |
Products | ||||
Total net sales | $ 1,329.8 | $ 1,322 | $ 3,881.6 | $ 3,830.9 |
Total cost of sales | 1,076.8 | 1,064.9 | 3,167.7 | 3,068.3 |
Total gross profit | 253 | 257.1 | 713.9 | 762.6 |
Services | ||||
Total net sales | 319.7 | 412.9 | 1,155.2 | 1,182.9 |
Total cost of sales | 257.3 | 346.5 | 968.4 | 993.2 |
Total gross profit | $ 62.4 | $ 66.4 | $ 186.8 | $ 189.7 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 34.8 | $ (7.8) | $ 12.9 | $ 19.1 |
Other comprehensive (loss) income, net of tax (Note 11): | ||||
Translation adjustments | (8.4) | 17.7 | (31.1) | 46.8 |
Adjustment for net periodic pension and postretirement benefits plan cost | 1.6 | 0.7 | 5.9 | 2.1 |
Adjustment for available-for-sale securities | 0 | (1.8) | 0 | (119.3) |
Other comprehensive (loss) income | (6.8) | 16.6 | (25.2) | (70.4) |
Comprehensive income (loss) | 28 | 8.8 | (12.3) | (51.3) |
Less: comprehensive income attributable to noncontrolling interests | 0.1 | 0.3 | 0.7 | 1.1 |
Comprehensive income (loss) attributable to RRD common stockholders | $ 27.9 | $ 8.5 | $ (13) | $ (52.4) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 12.9 | $ 19.1 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Impairment charges and other-net | 3.4 | 21.8 |
Depreciation and amortization | 137.5 | 143.1 |
Provision for doubtful accounts receivable | 10.6 | 1.7 |
Share-based compensation | 6.4 | 6.4 |
Deferred income taxes | 7.3 | (10.1) |
Changes in uncertain tax positions | (0.4) | 0.7 |
Gain on investments and other assets-net | (13.8) | (2.8) |
Loss on debt extinguishments | 0.1 | 20.1 |
Net pension and other postretirement benefits plan income | (15.9) | (11) |
Realized gain on disposition of available-for-sale securities-net | (42.4) | |
Other | 4.8 | 14.7 |
Changes in operating assets and liabilities: | ||
Accounts receivable-net | (5.7) | (26.3) |
Inventories | (16.6) | (62.5) |
Prepaid expenses and other current assets | (5.9) | (6.3) |
Accounts payable | (150.7) | (18.9) |
Income taxes payable and receivable | (26.7) | (11.4) |
Accrued liabilities and other | 2.3 | (26.7) |
Pension and other postretirement benefits plan contributions | (13.5) | (12.4) |
Net cash used in operating activities | (63.9) | (3.2) |
INVESTING ACTIVITIES | ||
Capital expenditures | (72.7) | (77.2) |
Proceeds from sales of investments and other assets | 49.9 | 127.6 |
Payments related to company-owned life insurance | (1.8) | (7.5) |
Proceeds from disposal of business | 50.5 | |
Net cash provided by investing activities | 25.9 | 42.9 |
FINANCING ACTIVITIES | ||
Proceeds from other short-term debt | 56.5 | 23.1 |
Payments on other short-term debt | (12.2) | (12.9) |
Payments of current maturities and long-term debt | (0.2) | (200.9) |
Proceeds from credit facility borrowings | 975.1 | 1,165 |
Payments on credit facility borrowings | (949.1) | (1,000) |
Dividends paid | (21.8) | (29.4) |
Transfer of cash and cash equivalents to LSC and Donnelley Financial | (78) | |
Payments of withholding taxes on share-based compensation | (0.7) | (1.9) |
Other financing activities | (0.9) | (6) |
Net cash provided by (used in) financing activities | 46.7 | (141) |
Effect of exchange rate on cash, cash equivalents and restricted cash | (14) | 13.2 |
Net decrease in cash, cash equivalents and restricted cash | (5.3) | (88.1) |
Cash, cash equivalents and restricted cash at beginning of year | 301.5 | 335.9 |
Cash, cash equivalents and restricted cash at end of period | $ 296.2 | 247.8 |
SUPPLEMENTAL NON-CASH DISCLOSURE: | ||
Debt-for-equity exchange | $ 132.9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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 (“RRD,” the “Company,” “we,” “us,” and “our”) 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 our latest Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 28, 2018. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018. 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, we completed the separation of our financial communications and data services business (“Donnelley Financial Solutions, Inc.” or “Donnelley Financial”) and our publishing and retail-centric print services and office products business (“LSC Communications, Inc.” or “LSC”) into two separate publicly-traded companies (the “Separation”). We completed the tax-free distribution of approximately 26.2 million shares, or 80.75%, of the outstanding common stock of each of Donnelley Financial and LSC, to RRD stockholders (the “Distribution”). The Distribution was made to RRD stockholders of record as of the close of business on September 23, 2016, who received one share of Donnelley Financial common stock and one share of LSC common stock for every eight shares of RRD common stock held as of the record date. Immediately following the Distribution, we held approximately 6.2 million shares of Donnelley Financial common stock and approximately 6.2 million shares of LSC common stock. In March 2017, we sold all of the approximately 6.2 million shares of LSC common stock retained by us and used the proceeds to repay a portion of the outstanding borrowings under our then-existing credit facility. In June 2017 and August 2017, we exchanged all of the approximately 6.2 million shares of Donnelley Financial common stock for certain of our outstanding senior indebtedness, which obligations were subsequently cancelled and discharged upon delivery to us. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 30, 2018 and December 31, 2017 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. September 30, 2018 December 31, 2017 Cash and cash equivalents $ 247.0 $ 273.4 Restricted cash - current (a) 49.1 28.0 Restricted cash - noncurrent (b) 0.1 0.1 Total cash, cash equivalents and restricted cash $ 296.2 $ 301.5 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets Income Taxes The effective income tax rate was a benefit of 42.6% and 31.0% for the three months ended September 30, 2018 and 2017, respectively, and a benefit of 72.0% and 63.2% for the nine months ended September 30, 2018 and 2017, respectively. The effective income tax rate for the three and nine months ended September 30, 2018 is primarily driven by an adjustment to the provisional amounts related to the Tax Act nability to recognize a tax benefit on certain losses, and the release of a portion of our valuation allowance due to the gain on the sale of our Print Logistics business. The effective The sale of the LSC shares generated a capital loss which is being carried forward; however, it was determined at the time of the sale that the benefit of such deferred tax asset would not be fully realized and a valuation allowance was recorded. The effective income tax rate for the three months ended September 30, 2017 reflects the impact of the impairment of goodwill in the Marketing Solutions segment and the inability to recognize a tax benefit on certain losses. Cash payments for income . Cash refunds for income taxes were $14.0 million and $20.7 million . Included within Prepaid expenses and other current assets is income taxes receivable of $63.8 million and $23.9 million as of September 30, 2018 and December 31, 2017, respectively. On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118) which provides guidance for companies analyzing their accounting for the income tax effects of the Tax Act. SAB 118 provides that a company may report provisional amounts based on reasonable estimates. The provisional estimates are then subject to adjustment during a measurement period up to one year and should be accounted for as a prospective change. At December 31, 2017, we were able to make reasonable provisional estimates of the one-time transition tax and impact to deferred taxes; however, we continue to analyze our data and refine our estimated amounts accordingly, and continue to interpret any guidance or subsequent clarification of the tax law. As a result, we may make adjustments to the provisional amounts recorded, throughout the year, in accordance with the guidance outlined in SAB 118. During the three months ended September 30, 2018, we made an adjustment of $19.6 million to decrease the provisional amounts recorded at December 31, 2017, including a $19.0 million decrease related to the one-time transition tax and a $0.6 million decrease related to the change in Federal income tax rate. During the nine months ended September 30, 2018, our adjustments net to a decrease of $17.3 million to the provisional amounts recorded at December 31, 2017 Deferred U.S. income taxes and foreign taxes have historically not been provided on the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries for which such excess is considered to be permanently reinvested in those operations. We continue to analyze the global working capital and cash requirements and the potential tax liabilities attributable to repatriation, but we have yet to determine whether to change the prior assertion and repatriate earnings. We will record the tax effects of any change in the prior assertion in the period the analysis is complete and reasonable estimates are made. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On January 1, 2018, we adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. All revenue recognized in the Condensed Statements of Operations is considered to be revenue from contracts with clients. We recorded a net increase to opening retained earnings of $12.9 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the timing of revenue recognition for certain inventory that has been billed but not yet shipped. Disaggregation of Revenue The following table presents net sales disaggregated by products and services: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Products Commercial print $ 496.4 $ 510.5 $ 1,421.3 $ 1,495.9 Packaging 179.7 150.9 474.0 377.5 Direct mail 142.7 139.5 424.1 392.0 Statements 133.5 142.1 436.4 439.8 Labels 118.8 118.3 355.5 343.5 Digital print and fulfillment 113.5 115.2 332.6 342.7 Supply chain management 81.5 76.8 242.2 226.1 Forms 63.7 68.7 195.5 213.4 Total products net sales $ 1,329.8 $ 1,322.0 $ 3,881.6 $ 3,830.9 Services Logistics $ 229.1 $ 314.2 $ 880.3 $ 904.4 Business process outsourcing 60.5 59.1 183.1 165.1 Digital and creative solutions 29.4 37.7 88.4 108.2 Direct mail 0.7 1.9 3.4 5.2 Total services net sales $ 319.7 $ 412.9 $ 1,155.2 $ 1,182.9 Total net sales $ 1,649.5 $ 1,734.9 $ 5,036.8 $ 5,013.8 Products Our products revenue is primarily recognized at a point in time. We generally recognize revenue for products upon the transfer of control of the products to the client which typically occurs upon transfer of title and risk of ownership, which is generally upon shipment to the client. For certain products, w e are able to recognize revenue for completed inventory billed but not yet shipped at the client’s direction. The following is a description of our products: Commercial Print We generate revenue by providing various commercial printing products and offer a full range of branded materials including manuals, publications, brochures, business cards, flyers, post cards, posters and promotional items. Packaging We generate revenue by providing packaging print for clients in consumer electronics, life sciences, cosmetics and consumer packaged goods industries. Statements We generate revenue by creating critical business communications, including customer billings, financial statements, healthcare communications and insurance documents. Our capabilities include design and composition, variable imaging, email, archival and digital mail interaction, as well as our innovative RRDigital solution set. Direct Mail We generate revenue by providing print production, including touch mailings, and postal optimization strategies. Labels We generate revenue by producing custom labels for clients across multiple industries including warehouse and distribution, retail, pharmaceutical, manufacturing and consumer packaging. We offer distribution and shipping labels, healthcare and durable goods labels, promotional labels and consumer product goods packaging labels. Digital Print and Fulfillment We generate revenue by providing various in-store marketing materials, using our digital and offset printing capabilities, including in-store signage and point-of-purchase displays. We also create photobooks. Supply Chain Management We generate revenue by providing workflow design to assembly, configuration, kitting and fulfillment for clients in consumer electronics, telecommunications, life sciences, cosmetics, education and industrial industries. Forms We generate revenue by producing a variety of forms including invoices, order forms and business forms that support both the private and public sectors for clients in financial, government, retail, healthcare and business services industries. Services Our services revenue is recognized both at a point in time as well as over time. Our logistics revenue is primarily recognized over time as the performance obligation is completed Due to the short transit period of logistics performance obligations, the timing of revenue recognition does not require significant judgment. Logistics We generate revenue by providing specialized transportation and distribution services. These services are comprised of freight services, including truckload, less-than-truckload, intermodal and international freight forwarding; international mail and parcel distribution; and courier services including same day and next day delivery. As discussed in Note 16, Disposition Business Process Outsourcing We generate revenue by providing outsourcing services including creative services, research and analytics, financial management and other services for legal providers, insurance, telecommunications, utilities, retail and financial services companies. Digital and Creative Solutions We generate revenue by creating and managing content designed to speak directly to customers, including print and digital advertising, direct marketing and direct mail design, packaging design, marketing and sales collateral and in-store marketing. Variable Consideration Certain clients may receive volume-based rebates or early payment discounts, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be earned by our clients and reduce revenue accordingly. We do not expect significant changes to estimates of variable consideration. Given the nature of our products and the history of returns, product returns are not significant. Contract Balances The following table provides information about contract assets and liabilities from contracts with clients: Contract Assets Contract Liabilities Short-Term Short-Term Long-Term Balance at January 1, 2018 $ 4.0 $ 30.3 $ 1.4 Balance at September 30, 2018 3.9 26.2 0.8 Contract liabilities primarily relate to client advances received prior to completion of performance obligations. Reductions in contract liabilities are a result of our completion of performance obligations. Revenue recognized during the nine months ended September 30, 2018 from amounts included in contract liabilities at the beginning of the period was approximately $22.8 million. During the nine months ended September 30, 2018, we reclassified $4.0 million of contract assets to receivables as a result of the completion of the performance obligation and the right to the consideration becoming unconditional. Practical Expedients and Exemptions As part of the adoption of Topic 606, we have elected practical expedients and exemptions allowable under the guidance. We account for shipping and handling activities performed after the control of a good has been transferred to the client as a fulfillment cost. We accrue for the costs of shipping and handling activities if revenue is recognized before contractually agreed shipping and handling activities occur. We apply Topic 606 to a portfolio of contracts (or performance obligations) with similar characteristics as we reasonably expect that the effects on the financial statements of applying this guidance to the portfolio would not differ significantly from applying this guidance to the individual contracts (or performance obligations) within that portfolio. When the output method for measure of progress is determined appropriate, we recognize revenue in the amount for which we have the right to invoice for revenue that is recognized over time and for which we can demonstrate that the invoiced amount corresponds directly with the value to the client for the performance completed to date. We generally expense sales commissions and other costs to obtain a contract when incurred, because the amortization period would have been one year or less. These costs are recorded within Selling, general and administrative expenses. We exclude sales taxes and other similar taxes from the measurement of the transaction price. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Raw materials and manufacturing supplies $ 156.0 $ 161.1 Work in process 102.0 75.0 Finished goods 120.4 198.2 LIFO reserve (16.6 ) (17.5 ) Total inventories $ 361.8 $ 416.8 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment The components of property, plant and equipment at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Land $ 53.0 $ 56.1 Buildings 399.1 417.3 Machinery and equipment 1,832.3 1,885.2 2,284.4 2,358.6 Less: Accumulated depreciation (1,738.7 ) (1,743.5 ) Total property, plant and equipment-net $ 545.7 $ 615.1 During the three and nine months ended September 30, 2018, depreciation expense was $30.9 million and $96.5 million, respectively. During the three and nine months ended September 30, 2017, depreciation expense was $34.6 million and $105.2 million, respectively. During the fourth quarter of 2017, we entered into an agreement to sell a building and transfer the related land use rights to a third party for a facility in an international location. During the three months ended December 31, 2017 and nine months ended September 30, 2018, we received non-refundable deposits in accordance with the terms of the agreement of approximately $12.5 million and $32.1 million, respectively, which are recorded in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets. Additional deposits will be paid to us in accordance with the agreement. Gross proceeds, including deposits, from the sale are ex pected to be approximately $250.0 million and we expect the transaction to close in 2020 following receipt of government approvals and satisfaction of closing conditions . The combined carrying cost of the building and land use rights is not significant. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2017 Goodwill $ 2,759.8 $ 519.5 $ 3,279.3 Accumulated impairment losses (2,436.7 ) (254.1 ) (2,690.8 ) Total 323.1 265.4 588.5 Disposition (32.4 ) — (32.4 ) Foreign exchange (1.8 ) — (1.8 ) Net book value as of September 30, 2018 Goodwill 2,631.7 519.5 3,151.2 Accumulated impairment losses (2,342.8 ) (254.1 ) (2,596.9 ) Total $ 288.9 $ 265.4 $ 554.3 During the three months ended September 30, 2018 we reduced goodwill by $32.4 million for the disposition of our Print Logistics business. See Note 16, Disposition The components of other intangible assets at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 524.2 $ (423.2 ) $ 101.0 $ 534.1 $ (412.4 ) $ 121.7 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 25.7 (25.1 ) 0.6 26.2 (25.2 ) 1.0 Trade names 34.7 (16.1 ) 18.6 36.8 (16.2 ) 20.6 Total other intangible assets $ 586.6 $ (466.4 ) $ 120.2 $ 599.1 $ (455.8 ) $ 143.3 Amortization expense for other intangible assets was $6.8 million and $20.7 million for the three and nine months ended September 30, 2018, respectively. 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. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other | 6. Restructuring and Other For the three months ended September 30, 2018 and 2017, we recorded the following net restructuring and other expenses: Three Months Ended September 30, 2018 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 2.7 $ 3.6 $ 6.3 $ 0.4 $ 0.4 $ 7.1 Marketing Solutions 0.1 — 0.1 — 0.1 0.2 Corporate — 3.0 3.0 0.7 — 3.7 Total $ 2.8 $ 6.6 $ 9.4 $ 1.1 $ 0.5 $ 11.0 Three Months Ended September 30, 2017 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 4.2 $ 0.9 $ 5.1 $ 0.2 $ 0.4 $ 5.7 Marketing Solutions 1.4 — 1.4 21.3 0.1 22.8 Corporate 5.1 0.2 5.3 — — 5.3 Total $ 10.7 $ 1.1 $ 11.8 $ 21.5 $ 0.5 $ 33.8 For the nine months ended September 30, 2018 and 2017, we recorded the following net restructuring and other expenses: Nine Months Ended September 30, 2018 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 8.8 $ 5.7 $ 14.5 $ (4.3 ) $ 1.4 $ 11.6 Marketing Solutions 1.9 — 1.9 1.5 0.3 3.7 Corporate 0.5 6.3 6.8 0.7 — 7.5 Total $ 11.2 $ 12.0 $ 23.2 $ (2.1 ) $ 1.7 $ 22.8 Nine Months Ended September 30, 2017 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 9.6 $ 3.1 $ 12.7 $ (0.1 ) $ 1.4 $ 14.0 Marketing Solutions 2.6 0.3 2.9 21.8 0.3 25.0 Corporate 7.3 0.4 7.7 — — 7.7 Total $ 19.5 $ 3.8 $ 23.3 $ 21.7 $ 1.7 $ 46.7 Restructuring and Other For the three and nine months ended September 30, 2018, we recorded net restructuring charges of $2.8 million and $11.2 million, respectively, for employee termination costs. These charges primarily relate to the reorganization of selling, general and administrative functions across each segment and three announced facility closures in the Business Services segment. We also incurred lease termination and other restructuring charges of $6.6 million and $12.0 million, respectively, for the three and nine months ended September 30, 2018. Additionally, we recorded a $5.4 million net gain on the sale of previously impaired assets in the Business Services segment for the nine months ended September 30, 2018. The majority of these assets were previously impaired in 2015. We also recorded impairment charges related to facility closures of $3.3 million for the nine months ended September 30, 2018. For the three and nine months ended September 30, 2017, we recorded net restructuring charges of $10.7 million and $19.5 million, respectively, for employee termination costs. These charges primarily related to the reorganization of selling, general and administrative functions across each segment, ceasing our relationship in a joint venture within the Business Services segment and a facility closure in the Marketing Solutions segment. We also incurred lease termination and other restructuring charges of $1.1 million and $3.8 million, respectively, for the three and nine months ended September 30, 2017. Additionally, we recorded net impairment charges of $21.5 million and $21.7 million, respectively, for three and nine months ended September 30, 2017, primarily related to the $21.3 million impairment of goodwill in the Marketing Solutions segment. The remaining impairment charges recorded for the three and nine months ended September 30, 2017, were primarily due to the impairment of equipment associated with the facility closure in the Marketing Solutions segment. Multi-Employer Pension Plan (MEPP) Charges For both the three and nine months ended September 30, 2018 and 2017, we recorded charges of $0.5 million and $1.7 million, respectively, for MEPP withdrawal obligations unrelated to facility closures. The total liabilities for the withdrawal obligations associated with our decision to withdraw from all multi-employer pension plans included in Accrued liabilities and other and Other noncurrent liabilities are $5.1 million and $29.6 million, respectively, as of September 30, 2018 . Restructuring Reserve Restructuring reserves as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Foreign December 31, Restructuring Exchange and Cash September 30, 2017 Charges Other Paid 2018 Employee terminations $ 9.6 $ 11.2 $ (0.5 ) $ (14.2 ) $ 6.1 MEPP withdrawal obligations related to facility closures 11.0 0.5 — (1.1 ) 10.4 Lease terminations and other 2.9 11.5 1.3 (8.9 ) 6.8 Total $ 23.5 $ 23.2 $ 0.8 $ (24.2 ) $ 23.3 The current portion of restructuring reserves of $10.8 million at September 30, 2018 was included in Accrued liabilities and other, while the long-term portion of $12.5 million, primarily related to MEPP withdrawal obligations related to facility closures, employee terminations in litigation, environmental reserves and lease termination costs, was included in Other noncurrent liabilities at September 30, 2018. We anticipate that payments associated with the employee terminations reflected in the above table will be substantially completed by September 2019, excluding employee terminations in litigation. Payments on all of our MEPP withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to MEPP 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 our 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 our consolidated financial statements. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 7. Retirement Plans Components of net pension and other postretirement benefits plan (“OPEB”) income for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Pension expense (income): Service cost $ 0.1 $ 0.1 $ 0.5 $ 0.5 Interest cost 7.7 8.0 23.4 23.7 Expected return on plan assets (12.4 ) (12.7 ) (37.6 ) (37.6 ) Amortization, net 2.0 1.9 5.9 5.4 Settlements 0.2 — 1.5 — Net pension income $ (2.4 ) $ (2.7 ) $ (6.3 ) $ (8.0 ) OPEB expense (income): Service cost $ (0.3 ) $ 0.4 $ 0.5 $ 1.0 Interest cost 2.5 2.7 7.7 8.3 Expected return on plan assets (3.5 ) (3.4 ) (10.5 ) (10.1 ) Amortization, net (0.8 ) (0.7 ) (2.2 ) (2.2 ) Other (5.1 ) — (5.1 ) — Net other postretirement benefit income $ (7.2 ) $ (1.0 ) $ (9.6 ) $ (3.0 ) During the nine months ended September 30, 2018, we contributed $13.5 million to our retirement plans. Other OPEB income during the three and nine months ended September 30, 2018 reflects the change in one of our OPEB liabilities due to a revision to participant demographic data utilized in the actuarial valuations. We adopted ASU No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, with retrospective adoption, See Note 17, New Accounting Pronouncements , for further discussion and impact of adoption. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 8. Share-Based Compensation Share-based compensation expense totaled $2.2 million and $2.1 million for the three months ended September 30, 2018 and 2017, respectively, and $6.4 million for both the nine months ended September 30, 2018 and 2017. In March 2018, we awarded our annual share-based compensation grants, which consisted of 683,076 restricted stock units with a grant date fair value of $6.10 per unit and 683,076 performance share units also with a grant date fair value of $6.10 per unit. The restricted stock units are subject to a three year graded vesting period and the performance share units are subject to a 34 month cliff vesting period. Dividends are not paid on restricted stock units. In addition, during the nine months ended September 30, 2018, we granted 813,361 cash-settled stock units (“phantom stock units”). Our share price on the date of grant was $7.31. The phantom stock units vest and are payable in three equal installments over a period of three years after the grant date. Phantom stock units are not shares of our common stock and therefore the recipients of these awards do not receive ownership interest in the Company or stockholder voting rights subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control of the Company. All phantom stock unit awards are classified as liability awards due to their expected settlement in cash, and are included in Accrued liabilities and other in the Condensed Consolidated Balance Sheets. Compensation expense for these awards is measured based upon the fair value of the awards at the end of each reporting period. Dividends are not paid on phantom stock units. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | 9. Equity Our equity as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: RRD Stockholders' Noncontrolling Equity Interest Total Equity Balance at December 31, 2017 $ (217.6 ) $ 14.7 $ (202.9 ) Cumulative impact of adopting Topic 606, net of tax 12.9 — 12.9 Net income 11.7 1.2 12.9 Other comprehensive loss (24.7 ) (0.5 ) (25.2 ) Share-based compensation 6.4 — 6.4 Issuance of share-based awards, net of withholdings and other (0.8 ) — (0.8 ) Cash dividends paid (21.8 ) — (21.8 ) Distributions to noncontrolling interests — (1.0 ) (1.0 ) Balance at September 30, 2018 $ (233.9 ) $ 14.4 $ (219.5 ) |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 10. 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 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 market value of our stock price during the applicable period. In periods when we are in a net loss, 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, 2018 and 2017, no shares of common stock were purchased by us; 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 the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net income (loss) per share attributable to RRD common stockholders: Basic $ 0.49 $ (0.11 ) $ 0.17 $ 0.26 Diluted $ 0.49 $ (0.11 ) $ 0.17 $ 0.26 Numerator: Net income (loss) attributable to RRD common stockholders $ 34.3 $ (8.0 ) $ 11.7 $ 18.4 Denominator: Basic weighted average number of common shares outstanding 70.6 70.2 70.5 70.1 Dilutive options and awards 0.1 — 0.3 0.2 Diluted weighted average number of common shares outstanding 70.7 70.2 70.8 70.3 Weighted average number of anti-dilutive share-based awards: Stock options 0.7 1.3 0.9 1.0 Restricted stock units 0.5 1.1 0.6 0.7 Total 1.2 2.4 1.5 1.7 Dividends declared per common share $ 0.03 $ 0.14 $ 0.31 $ 0.42 |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income | 11. Other Comprehensive (Loss) Income The components of other comprehensive (loss) income and income tax expense (benefit) allocated to each component for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Net of Before Net of Tax Income Tax Tax Income Tax Amount Tax Amount Amount Tax Amount Translation adjustments $ (8.4 ) $ — $ (8.4 ) $ (31.1 ) $ — $ (31.1 ) Adjustment for net periodic pension and OPEB cost 2.1 0.5 1.6 7.9 2.0 5.9 Other comprehensive loss $ (6.3 ) $ 0.5 $ (6.8 ) $ (23.2 ) $ 2.0 $ (25.2 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Net of Before Net of Tax Income Tax Tax Income Tax Amount Tax Amount Amount Tax Amount Translation adjustments $ 17.7 $ — $ 17.7 $ 46.8 $ — $ 46.8 Adjustment for net periodic pension and OPEB 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 ) Accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2017 $ (144.6 ) $ 40.9 $ (103.7 ) Other comprehensive income (loss) before reclassifications 1.2 (30.6 ) (29.4 ) Amounts reclassified from accumulated other comprehensive loss 4.1 — 4.1 Impact of adopting ASU 2018-02 (22.1 ) — (22.1 ) Other 0.6 — 0.6 Net change in accumulated other comprehensive loss (16.2 ) (30.6 ) (46.8 ) Balance at September 30, 2018 $ (160.8 ) $ 10.3 $ (150.5 ) 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 OPEB 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 ) Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification in the Condensed 2018 2017 2018 2017 Consolidated Statements of Operations Translation Adjustments: Net realized loss, before tax $ — $ 2.8 $ — $ 2.8 Selling, general and administrative expenses Reclassification, net of tax $ — $ 2.8 $ — $ 2.8 Amortization of pension and OPEB cost: Net actuarial loss $ 2.0 $ 1.9 $ 5.9 $ 5.4 Investment and other income-net Net prior service credit (0.8 ) (0.7 ) (2.2 ) (2.2 ) Investment and other income-net Settlements 0.2 — 1.5 — Investment and other income-net Reclassifications before tax 1.4 1.2 5.2 3.2 Income tax benefit 0.4 0.5 1.1 1.1 Reclassification, net of tax $ 1.0 $ 0.7 $ 4.1 $ 2.1 Available-for-sale securities: Net realized gain on equity securities, before tax $ — $ (1.8 ) $ — $ (52.8 ) Investment and other income-net Income tax benefit — — — 18.0 Reclassification, net of tax — (1.8 ) — (70.8 ) Total reclassifications, net of tax $ 1.0 $ 1.7 $ 4.1 $ (65.9 ) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information During the first quarter of 2018, we realigned our reportable segments to reflect changes in our global operating structure and the manner in which the chief operating decision maker assesses information for decision-making purposes. All prior year amounts have been reclassified to conform to our current reporting structure. Our segments and their product and service offerings are summarized below: Business Services Business Services provides customized solutions at scale to help clients inform, service and transact with their customers. The segment’s primary product and service offerings include commercial print, logistics, statement printing, labels, packaging, supply chain management, forms and business process outsourcing. This segment also includes all of our operations in Asia, Europe, Canada and Latin America. Marketing Solutions Marketing Solutions leverages an integrated portfolio of data analytics, creative services and multichannel execution to deliver comprehensive, end-to-end solutions. The segment’s primary product and service offerings include direct mail, in-store marketing, digital print, kitting, fulfillment, digital and creative solutions and list services. Corporate Corporate consists of unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and last-in-first-out inventory provisions. In addition, certain costs and earnings of employee benefit plans, such as pension and OPEB expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages our cash pooling structures, which enables participating international locations to draw on our international cash resources to meet local liquidity needs. Information by Segment We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended September 30, 2018 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures September 30, 2018 Business Services $ 1,385.7 $ (22.5 ) $ 1,363.2 $ 74.8 $ 31.5 $ 14.6 $ 2,784.3 Marketing Solutions 295.6 (9.3 ) 286.3 11.8 11.7 2.7 678.1 Total operating segments 1,681.3 (31.8 ) 1,649.5 86.6 43.2 17.3 3,462.4 Corporate — — — (25.7 ) 1.0 7.4 235.6 Total operations $ 1,681.3 $ (31.8 ) $ 1,649.5 $ 60.9 $ 44.2 $ 24.7 $ 3,698.0 Three Months Ended September 30, 2017 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2017 Business Services $ 1,471.5 $ (30.9 ) $ 1,440.6 $ 51.0 $ 35.0 $ 16.3 $ 2,989.5 Marketing Solutions 303.7 (9.4 ) 294.3 (6.9 ) 11.0 1.7 717.0 Total operating segments 1,775.2 (40.3 ) 1,734.9 44.1 46.0 18.0 3,706.5 Corporate — — — (12.3 ) 1.0 5.0 198.0 Total operations $ 1,775.2 $ (40.3 ) $ 1,734.9 $ 31.8 $ 47.0 $ 23.0 $ 3,904.5 Nine Months Ended September 30, 2018 Income (Loss) Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Business Services $ 4,265.4 $ (77.1 ) $ 4,188.3 $ 152.9 $ 98.7 $ 51.6 Marketing Solutions 876.2 (27.7 ) 848.5 32.7 35.3 8.1 Total operating segments 5,141.6 (104.8 ) 5,036.8 185.6 134.0 59.7 Corporate — — — (67.0 ) 3.5 13.0 Total operations $ 5,141.6 $ (104.8 ) $ 5,036.8 $ 118.6 $ 137.5 $ 72.7 Nine Months Ended September 30, 2017 Income (Loss) Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Business Services $ 4,257.6 $ (91.9 ) $ 4,165.7 $ 152.8 $ 105.0 $ 50.7 Marketing Solutions 874.6 (26.5 ) 848.1 5.4 34.9 11.4 Total operating segments 5,132.2 (118.4 ) 5,013.8 158.2 139.9 62.1 Corporate — — — (48.7 ) 3.2 15.1 Total operations $ 5,132.2 $ (118.4 ) $ 5,013.8 $ 109.5 $ 143.1 $ 77.2 Restructuring and other expenses by segment are described in Note 6, Restructuring and Other |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies We are subject to laws and regulations relating to the protection of the environment. We provide 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. We have been designated as a potentially responsible party or have received claims in two active federal and state Superfund and other multiparty remediation sites. In addition to these sites, we may also have the obligation to remediate six other previously and currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that our liability could be joint and several, meaning that we could be required to pay an amount in excess of our proportionate share of the remediation costs. Our 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 our estimated liability. We believe that our recorded reserves, recorded in Accrued liabilities and other and Other noncurrent liabilities, are adequate to cover our 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 we may undertake in the future. However, in our opinion, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material effect on our consolidated results of operations, financial position or cash flows. From time to time, our clients and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by us from these parties could be considered preference items and subject to return. In addition, we may be party to certain litigation arising in the ordinary course of business. We believe that the final resolution of these preference items and litigation will not have a material effect on our consolidated results of operations, financial position or cash flows. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt Debt at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Borrowings under the Credit Agreement $ 242.0 $ 216.0 11.25% senior notes due February 1, 2019 (a) 172.2 172.2 7.625% senior notes due June 15, 2020 238.4 238.4 7.875% senior notes due March 15, 2021 447.4 447.2 8.875% debentures due April 15, 2021 81.0 80.9 7.00% senior notes due February 15, 2022 140.0 140.0 6.50% senior notes due November 15, 2023 290.6 290.6 6.00% senior notes due April 1, 2024 298.3 298.3 6.625% debentures due April 15, 2029 157.9 157.9 8.820% debentures due April 15, 2031 69.0 69.0 Other (b) 50.2 10.8 Unamortized debt issuance costs (9.7 ) (11.6 ) Total debt 2,177.3 2,109.7 Less: current portion (222.0 ) (10.8 ) Long-term debt $ 1,955.3 $ 2,098.9 (a) As of September 30, 2018 and December 31, 2017, 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 previous ratings downgrades. (b) Includes other miscellaneous debt obligations, primarily at foreign subsidiaries, 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 us for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of our total debt was greater than its book value by approximately $52.6 million and $18.8 million at September 30, 2018 and December 31, 2017, respectively. On October 15, 2018, we entered into a $550.0 million senior secured Term Loan B credit facility pursuant to a credit agreement (the “Term Loan Credit Agreement”). Proceeds from the Term Loan Credit Agreement, net of a $5.5 million discount, were used to repurchase certain senior notes, pay transaction fees and repay a portion of borrowings under the Credit Agreement. Our obligations under the Term Loan Credit Agreement are guaranteed by certain of our domestic subsidiaries (the “Guarantors”) and are secured by a security interest in substantially all of our assets and certain of our domestic subsidiaries (the “Collateral”). Collateral consisting of accounts receivable, inventory, equipment, money, deposit accounts, securities accounts, investment property, 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 secures our obligations and of the Guarantors under the Term Loan Credit Agreement and related guarantees on a second-priority basis (collectively the “ABL Priority Collateral”), and all other Collateral other than the ABL Priority Collateral secures our obligations and of the Guarantors under the Term Loan Credit Agreement and related guarantees on a first-priority basis, in each case, subject to permitted liens. The Term Loan Credit Agreement contains customary affirmative and negative covenants including negative covenants restricting, among other things, our ability to incur debt, make investments, make certain restricted payments (including payments on certain other debt), incur liens securing other debt, consummate certain fundamental transactions, enter into transactions with affiliates and consummate asset sales. The Term Loan Credit Agreement requires that the net cash proceeds of significant asset sales be used to prepay borrowings under the Term Loan Credit Agreement, except in certain circumstances, including the reinvestment of net cash proceeds in assets useful to our business, repayment of borrowings under our Credit Agreement or the funding of debt tenders, in each case, subject to certain restrictions and limitations set forth in the Term Loan Credit Agreement. The Term Loan Credit Agreement is scheduled to mature on January 15, 2024, at which time all amounts outstanding under the Term Loan Credit Agreement will be due and payable. Principal payments of $1.4 million are due quarterly. Borrowings will bear interest at a Eurocurrency rate plus a margin of 5% or a base rate plus a margin of 4%. On October 15, 2018, we repurchased $172.6 million and $257.4 million in aggregate principal amount of the 7.625% senior notes due 2020 and 7.875% senior notes due 2021, respectively, pursuant to a tender offer . We expect to record a loss on debt extinguishment of approximately $31.6 million in the fourth quarter of 2018 on the repurchase of the bonds, representing tender premiums paid of $29.0 million, write-off of unamortized debt issuance costs of $1.5 million and fees and expenses of $1.1 million. On September 29, 2017, we entered into an asset-based revolving credit facility (the “Credit Agreement”) which amended and restated our prior $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 ours and certain of our 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. On October 15, 2018, we entered into Amendment No. 1 to the Credit Agreement, which amends the Credit Agreement to, among other things, permit (i) the incurrence of the debt pursuant to the Term Loan Credit Agreement and (ii) the incurrence of a lien on the ABL Priority Collateral to secure our obligations under the Term Loan Credit Agreement and related guarantees on a second-priority basis. Our obligations under the Credit Agreement are guaranteed by the Guarantors and are secured by a security interest in certain assets of ours and our domestic subsidiaries, including accounts receivable, inventory, deposit accounts, securities accounts, investment property, machinery, equipment and, to the extent related to the foregoing, general intangibles, documents and instruments, as well as 65% of the equity interests of our first-tier foreign subsidiaries. The Credit Agreement contains customary restrictive covenants, including a covenant which requires us to maintain a minimum fixed charge coverage ratio under certain circumstances. In addition, our 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 Credit Agreement generally allows annual dividend payments of up to $60.0 million in aggregate, though additional dividends may be allowed subject to certain conditions. Borrowings under the Credit Agreement bear interest at a rate dependent on the average quarterly availability under the Credit Agreement and is calculated according to a base rate (prime rate) or a Eurocurrency rate (London Inter-bank Offered Rate or “LIBOR”) 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, a fee is payable quarterly on the unused portion of the amount available to be borrowed under the Credit Agreement. The fee accrues at a rate of either 0.25% or 0.375% depending upon the average usage of the facility. 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. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes. Based on our borrowing base as of September 30, 2018 and existing borrowings, we had approximately $445.2 million borrowing capacity available under the Credit Agreement. The weighted average interest rate on borrowings under our current and prior credit facilities was 3.4% and 3.7% during the nine months ended September 30, 2018 and 2017, respectively. Interest paid, net of interest capitalized, was $38.2 million and $120.0 million for the three and nine months ended September 30, 2018, respectively, and $39.3 million and $133.8 million for the three and nine months ended September 30, 2017, respectively. Interest income was $0.8 million and $2.0 million for the three and nine months ended September 30, 2018, respectively, and $0.8 million and $2.3 million for the three and nine months ended September 30, 2017, respectively. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 15. 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 the Condensed Consolidated Statements of Operations, or in other comprehensive income (loss), net of applicable income taxes, depending on the purpose for which the derivative is held. At the inception of a hedge transaction, we formally document the hedge relationship and the risk management objective for undertaking the hedge. In addition, we assess 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 in the Condensed Consolidated Statements of Operations. We are exposed to the impact of foreign currency fluctuations in certain countries in which we operate. The exposure to foreign currency movements is limited in many countries because the operating revenues and expenses of our 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, we are exposed to currency risk. Periodically, we use foreign exchange spot and forward 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 in the Condensed Consolidated Statements of Operations and are generally offset by gains and losses on underlying payables, receivables and net investments in foreign subsidiaries. We do not use derivative financial instruments for trading or speculative purposes. The aggregate notional value of the forward contracts at September 30, 2018 and December 31, 2017 was $124.2 million and $215.9 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. The total fair value of our foreign currency contracts, which were the only derivatives not designated as hedges, included in Prepaid expenses and other current assets at September 30, 2018 |
Disposition
Disposition | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposition | 16. Disposition On July 2, 2018, we completed the sale of our Print Logistics business for $60.0 million cash, of which we received $55.1 million after transaction costs and preliminary working capital adjustments in the third quarter of 2018. In addition, $4.9 million of cash was included in the disposition. A final working capital adjustment of approximately $6.9 million is expected to be paid by us in the fourth quarter of 2018. Proceeds from the sale were used to reduce borrowings outstanding on our credit facility. The disposition resulted in a pre-tax gain of $4.5 million during the three and nine months ended September 30, 2018, which was recorded in Other operating income in the Condensed Consolidated Statements of Operations. We paid minimal income taxes as a result of the sale due to the utilization of capital loss carryforwards to offset the taxable gain. Prior to the sale, operating results for the Print Logistics business were reported as services within the Business Services segment. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 17. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the Tax Act. The standard also requires entities to disclose whether or not they elected to reclassify the tax effects related to the Tax Act from accumulated other comprehensive income. The standard allows the option of applying either a retrospective adoption, meaning the standard is applied to all periods in which the effect of the Tax Act is recognized, or applying the amendments in the period of adoption, meaning an adjustment is made to stockholders’ equity as of the beginning of the reporting period. ASU 2018-02 will be effective in the first quarter of 2019; however, early adoption is permitted for interim and annual periods, including the reporting period in which the Tax Act was enacted. As of July 1, 2018, we adopted the provisions of ASU 2018-02, which resulted in a decrease to Accumulated deficit and increase to Accumulated other comprehensive loss of $22.1 million. 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 changed the presentation of net periodic pension and postretirement benefit cost (net benefit cost) within the Statement of Operations. Under the previous guidance, net benefit cost was reported as an employee cost within income from operations. The amendment required the bifurcation of net benefit cost, with the service cost component presented with other employee compensation costs in income from operations while the other components are presented separately outside of income from operations. We retrospectively adopted this guidance as of January 1, 2018. See Note 7, Employee Benefits , for further discussion. The impact of adoption was a $0.9 million increase in Total cost of sales, $3.2 million increase in Selling, general and administrative expenses and $4.1 million increase in Investment and other income-net for the three months ended September 30, 2017 to the amounts previously reported. The impact of adoption for the nine months ended September 30, 2017 was a $3.0 million increase in Total cost of sales, $9.4 million increase in Selling, general and administrative expenses and $12.4 million increase in Investment and other income-net to the amounts previously reported. In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlined a single comprehensive model for entities to use in accounting for revenue using a five-step process that superseded virtually all existing revenue guidance. ASU 2014-09 also required additional quantitative and qualitative disclosures. During 2016, the FASB issued ASU 2016-08 ASU 2016-10 “ and ASU 2016-12 which clarified 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. Revenue Recognition In accordance with Topic 606, the impact of adoption as compared to the prior guidance on our Condensed Consolidated Statements of Operations . No other financial statement line item was materially impacted. Accounting Pronouncements Issued and Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), which removes certain disclosures that are no longer cost beneficial and also includes additional disclosures to improve the overall usefulness of the disclosure requirements to financial statement users. ASU 2018-14 will be effective for us in 2020, however early adoption is permitted. We are currently evaluating the impact of ASU 2018-14 on the consolidated financial statements. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions in the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. We will complete our assessment in the fourth quarter of 2018 and therefore have not yet elected an accounting policy. In February 2016, the FASB issued ASU No. “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) The amendments in ASU 2018-10 address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASU 2018-11 clarify details on comparative reporting required at the adoption of the standard and provide clarity on separating components of a lease contract. We are evaluating and planning for adoption and implementation of this ASU, including implementing a new global lease accounting system, evaluating practical expedient and accounting policy elections and assessing the overall financial statement impact. The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for certain classes of assets, including leased buildings. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our real estate operating leases; and (2) providing significant new disclosures about our leasing arrangements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 30, 2018 and December 31, 2017 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. September 30, 2018 December 31, 2017 Cash and cash equivalents $ 247.0 $ 273.4 Restricted cash - current (a) 49.1 28.0 Restricted cash - noncurrent (b) 0.1 0.1 Total cash, cash equivalents and restricted cash $ 296.2 $ 301.5 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales Disaggregated by Products and Services | The following table presents net sales disaggregated by products and services: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Products Commercial print $ 496.4 $ 510.5 $ 1,421.3 $ 1,495.9 Packaging 179.7 150.9 474.0 377.5 Direct mail 142.7 139.5 424.1 392.0 Statements 133.5 142.1 436.4 439.8 Labels 118.8 118.3 355.5 343.5 Digital print and fulfillment 113.5 115.2 332.6 342.7 Supply chain management 81.5 76.8 242.2 226.1 Forms 63.7 68.7 195.5 213.4 Total products net sales $ 1,329.8 $ 1,322.0 $ 3,881.6 $ 3,830.9 Services Logistics $ 229.1 $ 314.2 $ 880.3 $ 904.4 Business process outsourcing 60.5 59.1 183.1 165.1 Digital and creative solutions 29.4 37.7 88.4 108.2 Direct mail 0.7 1.9 3.4 5.2 Total services net sales $ 319.7 $ 412.9 $ 1,155.2 $ 1,182.9 Total net sales $ 1,649.5 $ 1,734.9 $ 5,036.8 $ 5,013.8 |
Contract Assets and Liabilities from Contracts with Clients | The following table provides information about contract assets and liabilities from contracts with clients: Contract Assets Contract Liabilities Short-Term Short-Term Long-Term Balance at January 1, 2018 $ 4.0 $ 30.3 $ 1.4 Balance at September 30, 2018 3.9 26.2 0.8 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Raw materials and manufacturing supplies $ 156.0 $ 161.1 Work in process 102.0 75.0 Finished goods 120.4 198.2 LIFO reserve (16.6 ) (17.5 ) Total inventories $ 361.8 $ 416.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Land $ 53.0 $ 56.1 Buildings 399.1 417.3 Machinery and equipment 1,832.3 1,885.2 2,284.4 2,358.6 Less: Accumulated depreciation (1,738.7 ) (1,743.5 ) Total property, plant and equipment-net $ 545.7 $ 615.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Value of Goodwill by Segment | The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2017 Goodwill $ 2,759.8 $ 519.5 $ 3,279.3 Accumulated impairment losses (2,436.7 ) (254.1 ) (2,690.8 ) Total 323.1 265.4 588.5 Disposition (32.4 ) — (32.4 ) Foreign exchange (1.8 ) — (1.8 ) Net book value as of September 30, 2018 Goodwill 2,631.7 519.5 3,151.2 Accumulated impairment losses (2,342.8 ) (254.1 ) (2,596.9 ) Total $ 288.9 $ 265.4 $ 554.3 |
Components of Other Intangible Assets | The components of other intangible assets at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 524.2 $ (423.2 ) $ 101.0 $ 534.1 $ (412.4 ) $ 121.7 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 25.7 (25.1 ) 0.6 26.2 (25.2 ) 1.0 Trade names 34.7 (16.1 ) 18.6 36.8 (16.2 ) 20.6 Total other intangible assets $ 586.6 $ (466.4 ) $ 120.2 $ 599.1 $ (455.8 ) $ 143.3 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring and Other Expenses | For the three months ended September 30, 2018 and 2017, we recorded the following net restructuring and other expenses: Three Months Ended September 30, 2018 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 2.7 $ 3.6 $ 6.3 $ 0.4 $ 0.4 $ 7.1 Marketing Solutions 0.1 — 0.1 — 0.1 0.2 Corporate — 3.0 3.0 0.7 — 3.7 Total $ 2.8 $ 6.6 $ 9.4 $ 1.1 $ 0.5 $ 11.0 Three Months Ended September 30, 2017 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 4.2 $ 0.9 $ 5.1 $ 0.2 $ 0.4 $ 5.7 Marketing Solutions 1.4 — 1.4 21.3 0.1 22.8 Corporate 5.1 0.2 5.3 — — 5.3 Total $ 10.7 $ 1.1 $ 11.8 $ 21.5 $ 0.5 $ 33.8 For the nine months ended September 30, 2018 and 2017, we recorded the following net restructuring and other expenses: Nine Months Ended September 30, 2018 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 8.8 $ 5.7 $ 14.5 $ (4.3 ) $ 1.4 $ 11.6 Marketing Solutions 1.9 — 1.9 1.5 0.3 3.7 Corporate 0.5 6.3 6.8 0.7 — 7.5 Total $ 11.2 $ 12.0 $ 23.2 $ (2.1 ) $ 1.7 $ 22.8 Nine Months Ended September 30, 2017 Employee Other Restructuring Total Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Charges Total Business Services $ 9.6 $ 3.1 $ 12.7 $ (0.1 ) $ 1.4 $ 14.0 Marketing Solutions 2.6 0.3 2.9 21.8 0.3 25.0 Corporate 7.3 0.4 7.7 — — 7.7 Total $ 19.5 $ 3.8 $ 23.3 $ 21.7 $ 1.7 $ 46.7 |
Schedule of Changes in the Restructuring Reserve | Restructuring reserves as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Foreign December 31, Restructuring Exchange and Cash September 30, 2017 Charges Other Paid 2018 Employee terminations $ 9.6 $ 11.2 $ (0.5 ) $ (14.2 ) $ 6.1 MEPP withdrawal obligations related to facility closures 11.0 0.5 — (1.1 ) 10.4 Lease terminations and other 2.9 11.5 1.3 (8.9 ) 6.8 Total $ 23.5 $ 23.2 $ 0.8 $ (24.2 ) $ 23.3 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income | Components of net pension and other postretirement benefits plan (“OPEB”) income for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Pension expense (income): Service cost $ 0.1 $ 0.1 $ 0.5 $ 0.5 Interest cost 7.7 8.0 23.4 23.7 Expected return on plan assets (12.4 ) (12.7 ) (37.6 ) (37.6 ) Amortization, net 2.0 1.9 5.9 5.4 Settlements 0.2 — 1.5 — Net pension income $ (2.4 ) $ (2.7 ) $ (6.3 ) $ (8.0 ) OPEB expense (income): Service cost $ (0.3 ) $ 0.4 $ 0.5 $ 1.0 Interest cost 2.5 2.7 7.7 8.3 Expected return on plan assets (3.5 ) (3.4 ) (10.5 ) (10.1 ) Amortization, net (0.8 ) (0.7 ) (2.2 ) (2.2 ) Other (5.1 ) — (5.1 ) — Net other postretirement benefit income $ (7.2 ) $ (1.0 ) $ (9.6 ) $ (3.0 ) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Equity Activity | Our equity as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: RRD Stockholders' Noncontrolling Equity Interest Total Equity Balance at December 31, 2017 $ (217.6 ) $ 14.7 $ (202.9 ) Cumulative impact of adopting Topic 606, net of tax 12.9 — 12.9 Net income 11.7 1.2 12.9 Other comprehensive loss (24.7 ) (0.5 ) (25.2 ) Share-based compensation 6.4 — 6.4 Issuance of share-based awards, net of withholdings and other (0.8 ) — (0.8 ) Cash dividends paid (21.8 ) — (21.8 ) Distributions to noncontrolling interests — (1.0 ) (1.0 ) Balance at September 30, 2018 $ (233.9 ) $ 14.4 $ (219.5 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net income (loss) per share attributable to RRD common stockholders: Basic $ 0.49 $ (0.11 ) $ 0.17 $ 0.26 Diluted $ 0.49 $ (0.11 ) $ 0.17 $ 0.26 Numerator: Net income (loss) attributable to RRD common stockholders $ 34.3 $ (8.0 ) $ 11.7 $ 18.4 Denominator: Basic weighted average number of common shares outstanding 70.6 70.2 70.5 70.1 Dilutive options and awards 0.1 — 0.3 0.2 Diluted weighted average number of common shares outstanding 70.7 70.2 70.8 70.3 Weighted average number of anti-dilutive share-based awards: Stock options 0.7 1.3 0.9 1.0 Restricted stock units 0.5 1.1 0.6 0.7 Total 1.2 2.4 1.5 1.7 Dividends declared per common share $ 0.03 $ 0.14 $ 0.31 $ 0.42 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive (Loss) Income and Income Tax Expense (Benefit) Allocated to Each Component | The components of other comprehensive (loss) income and income tax expense (benefit) allocated to each component for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Net of Before Net of Tax Income Tax Tax Income Tax Amount Tax Amount Amount Tax Amount Translation adjustments $ (8.4 ) $ — $ (8.4 ) $ (31.1 ) $ — $ (31.1 ) Adjustment for net periodic pension and OPEB cost 2.1 0.5 1.6 7.9 2.0 5.9 Other comprehensive loss $ (6.3 ) $ 0.5 $ (6.8 ) $ (23.2 ) $ 2.0 $ (25.2 ) Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Before Net of Before Net of Tax Income Tax Tax Income Tax Amount Tax Amount Amount Tax Amount Translation adjustments $ 17.7 $ — $ 17.7 $ 46.8 $ — $ 46.8 Adjustment for net periodic pension and OPEB 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 ) |
Summary of Changes in Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss by component as of December 31, 2017 and September 30, 2018, and changes during the nine months ended September 30, 2018, were as follows: Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2017 $ (144.6 ) $ 40.9 $ (103.7 ) Other comprehensive income (loss) before reclassifications 1.2 (30.6 ) (29.4 ) Amounts reclassified from accumulated other comprehensive loss 4.1 — 4.1 Impact of adopting ASU 2018-02 (22.1 ) — (22.1 ) Other 0.6 — 0.6 Net change in accumulated other comprehensive loss (16.2 ) (30.6 ) (46.8 ) Balance at September 30, 2018 $ (160.8 ) $ 10.3 $ (150.5 ) 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 OPEB 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 ) |
Reclassifications from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification in the Condensed 2018 2017 2018 2017 Consolidated Statements of Operations Translation Adjustments: Net realized loss, before tax $ — $ 2.8 $ — $ 2.8 Selling, general and administrative expenses Reclassification, net of tax $ — $ 2.8 $ — $ 2.8 Amortization of pension and OPEB cost: Net actuarial loss $ 2.0 $ 1.9 $ 5.9 $ 5.4 Investment and other income-net Net prior service credit (0.8 ) (0.7 ) (2.2 ) (2.2 ) Investment and other income-net Settlements 0.2 — 1.5 — Investment and other income-net Reclassifications before tax 1.4 1.2 5.2 3.2 Income tax benefit 0.4 0.5 1.1 1.1 Reclassification, net of tax $ 1.0 $ 0.7 $ 4.1 $ 2.1 Available-for-sale securities: Net realized gain on equity securities, before tax $ — $ (1.8 ) $ — $ (52.8 ) Investment and other income-net Income tax benefit — — — 18.0 Reclassification, net of tax — (1.8 ) — (70.8 ) Total reclassifications, net of tax $ 1.0 $ 1.7 $ 4.1 $ (65.9 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended September 30, 2018 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures September 30, 2018 Business Services $ 1,385.7 $ (22.5 ) $ 1,363.2 $ 74.8 $ 31.5 $ 14.6 $ 2,784.3 Marketing Solutions 295.6 (9.3 ) 286.3 11.8 11.7 2.7 678.1 Total operating segments 1,681.3 (31.8 ) 1,649.5 86.6 43.2 17.3 3,462.4 Corporate — — — (25.7 ) 1.0 7.4 235.6 Total operations $ 1,681.3 $ (31.8 ) $ 1,649.5 $ 60.9 $ 44.2 $ 24.7 $ 3,698.0 Three Months Ended September 30, 2017 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2017 Business Services $ 1,471.5 $ (30.9 ) $ 1,440.6 $ 51.0 $ 35.0 $ 16.3 $ 2,989.5 Marketing Solutions 303.7 (9.4 ) 294.3 (6.9 ) 11.0 1.7 717.0 Total operating segments 1,775.2 (40.3 ) 1,734.9 44.1 46.0 18.0 3,706.5 Corporate — — — (12.3 ) 1.0 5.0 198.0 Total operations $ 1,775.2 $ (40.3 ) $ 1,734.9 $ 31.8 $ 47.0 $ 23.0 $ 3,904.5 Nine Months Ended September 30, 2018 Income (Loss) Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Business Services $ 4,265.4 $ (77.1 ) $ 4,188.3 $ 152.9 $ 98.7 $ 51.6 Marketing Solutions 876.2 (27.7 ) 848.5 32.7 35.3 8.1 Total operating segments 5,141.6 (104.8 ) 5,036.8 185.6 134.0 59.7 Corporate — — — (67.0 ) 3.5 13.0 Total operations $ 5,141.6 $ (104.8 ) $ 5,036.8 $ 118.6 $ 137.5 $ 72.7 Nine Months Ended September 30, 2017 Income (Loss) Depreciation Total Intersegment Net from and Capital Sales Sales Sales Operations Amortization Expenditures Business Services $ 4,257.6 $ (91.9 ) $ 4,165.7 $ 152.8 $ 105.0 $ 50.7 Marketing Solutions 874.6 (26.5 ) 848.1 5.4 34.9 11.4 Total operating segments 5,132.2 (118.4 ) 5,013.8 158.2 139.9 62.1 Corporate — — — (48.7 ) 3.2 15.1 Total operations $ 5,132.2 $ (118.4 ) $ 5,013.8 $ 109.5 $ 143.1 $ 77.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Borrowings under the Credit Agreement $ 242.0 $ 216.0 11.25% senior notes due February 1, 2019 (a) 172.2 172.2 7.625% senior notes due June 15, 2020 238.4 238.4 7.875% senior notes due March 15, 2021 447.4 447.2 8.875% debentures due April 15, 2021 81.0 80.9 7.00% senior notes due February 15, 2022 140.0 140.0 6.50% senior notes due November 15, 2023 290.6 290.6 6.00% senior notes due April 1, 2024 298.3 298.3 6.625% debentures due April 15, 2029 157.9 157.9 8.820% debentures due April 15, 2031 69.0 69.0 Other (b) 50.2 10.8 Unamortized debt issuance costs (9.7 ) (11.6 ) Total debt 2,177.3 2,109.7 Less: current portion (222.0 ) (10.8 ) Long-term debt $ 1,955.3 $ 2,098.9 (a) As of September 30, 2018 and December 31, 2017, 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 previous ratings downgrades. (b) Includes other miscellaneous debt obligations, primarily at foreign subsidiaries, and capital leases. |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Standards Update 2014-09 | |
Impact of Adoption of Topic 606 to Condensed Consolidated Statements of Operations and Balance Sheet | In accordance with Topic 606, the impact of adoption as compared to the prior guidance on our Condensed Consolidated Statements of Operations . No other financial statement line item was materially impacted. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Detail) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 31, 2017shares | Jun. 30, 2017shares | Sep. 30, 2018USD ($) | Sep. 30, 2017 | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017shares | Oct. 01, 2016Entityshares | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of entities resulted from spinoff of an entity | Entity | 2 | ||||||||
Effective income tax rate benefit | (42.60%) | (31.00%) | (72.00%) | (63.20%) | |||||
Cash payments for income taxes | $ 28.4 | $ 34.1 | |||||||
Cash refunds for income taxes | 14 | 20.7 | |||||||
Increase (decrease) in tax provisional estimates from changes in the Tax Act | $ (19.6) | (17.3) | |||||||
Decrease in tax provisional estimates related to one-time transition tax | (19) | ||||||||
Decrease in tax provisional estimates related to change in federal income tax rate | (0.6) | ||||||||
Prepaid Expenses and Other Current Assets | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Income taxes receivable | $ 63.8 | $ 63.8 | $ 23.9 | ||||||
Donnelley Financial Solutions, Inc. | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common shares distributed during spinoff | shares | 26.2 | ||||||||
Percentage of tax free distribution of common shares during spinoff | 80.75% | ||||||||
Number of common shares held | shares | 6.2 | ||||||||
Non-cash debt-for-equity exchange, shares | shares | 6.2 | 6.2 | |||||||
Realized gain (loss) on sale of retained shares | 94 | ||||||||
LSC Communications, Inc. | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common shares distributed during spinoff | shares | 26.2 | ||||||||
Percentage of tax free distribution of common shares during spinoff | 80.75% | ||||||||
Number of common shares held | shares | 6.2 | 6.2 | |||||||
Realized gain (loss) on sale of retained shares | $ (51.6) |
Basis of Presentation - Reconci
Basis of Presentation - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 247 | $ 273.4 |
Restricted cash - current | $ 49.1 | $ 28 |
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent |
Restricted cash - noncurrent | $ 0.1 | $ 0.1 |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Total cash, cash equivalents and restricted cash | $ 296.2 | $ 301.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ (2,200.8) | $ (2,225.7) | |
Accounting Standards Update 2014-09 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue recognized from deferred revenue | 22.8 | ||
Contract asset reclassified to receivables | $ 4 | ||
Revenue, practical expedient, incremental cost of obtaining contract | true | ||
Revenue, remaining performance obligation, optional exemption, performance obligation | true | ||
Cumulative Impact of Adopting Topic 606 | Accounting Standards Update 2014-09 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 12.9 |
Revenue Recognition - Net Sales
Revenue Recognition - Net Sales Disaggregated by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 1,649.5 | $ 1,734.9 | $ 5,036.8 | $ 5,013.8 |
Commercial Print | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 496.4 | 510.5 | 1,421.3 | 1,495.9 |
Statements | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 133.5 | 142.1 | 436.4 | 439.8 |
Direct Mail | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 142.7 | 139.5 | 424.1 | 392 |
Labels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 118.8 | 118.3 | 355.5 | 343.5 |
Packaging | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 179.7 | 150.9 | 474 | 377.5 |
Digital Print and Fulfillment | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 113.5 | 115.2 | 332.6 | 342.7 |
Supply Chain Management | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 81.5 | 76.8 | 242.2 | 226.1 |
Forms | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 63.7 | 68.7 | 195.5 | 213.4 |
Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 1,329.8 | 1,322 | 3,881.6 | 3,830.9 |
Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 229.1 | 314.2 | 880.3 | 904.4 |
Business Process Outsourcing | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 60.5 | 59.1 | 183.1 | 165.1 |
Digital and Creative Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 29.4 | 37.7 | 88.4 | 108.2 |
Direct Mail | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 0.7 | 1.9 | 3.4 | 5.2 |
Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 319.7 | $ 412.9 | $ 1,155.2 | $ 1,182.9 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities from Contracts with Clients (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue From Contract With Customer [Abstract] | ||
Contract Assets, Short-Term | $ 3.9 | $ 4 |
Contract Liabilities, Short-Term | 26.2 | 30.3 |
Contract Liabilities, Long-Term | $ 0.8 | $ 1.4 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 156 | $ 161.1 |
Work in process | 102 | 75 |
Finished goods | 120.4 | 198.2 |
LIFO reserve | (16.6) | (17.5) |
Total inventories | $ 361.8 | $ 416.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Land | $ 53 | $ 56.1 |
Buildings | 399.1 | 417.3 |
Machinery and equipment | 1,832.3 | 1,885.2 |
Property, plant and equipment, gross | 2,284.4 | 2,358.6 |
Less: Accumulated depreciation | (1,738.7) | (1,743.5) |
Total property, plant and equipment-net | $ 545.7 | $ 615.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||||
Depreciation expense | $ 30.9 | $ 34.6 | $ 96.5 | $ 105.2 | |
Building and related land sales, non-refundable deposit received | $ 32.1 | 32.1 | $ 12.5 | ||
Gross proceeds including deposits from the sale to be expected | $ 250 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill gross | $ 3,151.2 | $ 3,279.3 |
Accumulated impairment losses | (2,596.9) | (2,690.8) |
Goodwill | 554.3 | 588.5 |
Disposition | (32.4) | |
Foreign exchange | (1.8) | |
Business Services | ||
Goodwill [Line Items] | ||
Goodwill gross | 2,631.7 | 2,759.8 |
Accumulated impairment losses | (2,342.8) | (2,436.7) |
Goodwill | 288.9 | 323.1 |
Disposition | (32.4) | |
Foreign exchange | (1.8) | |
Marketing Solutions | ||
Goodwill [Line Items] | ||
Goodwill gross | 519.5 | 519.5 |
Accumulated impairment losses | (254.1) | (254.1) |
Goodwill | $ 265.4 | $ 265.4 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Other Intangible Assets [Line Items] | ||||
Reduced in goodwill | $ 32.4 | |||
Amortization expense for other intangible assets | $ 6.8 | $ 7.1 | 20.7 | $ 21.6 |
Business Services | ||||
Schedule Of Other Intangible Assets [Line Items] | ||||
Reduced in goodwill | $ 32.4 | |||
Disposition by Sale | Business Services | Print Logistics | ||||
Schedule Of Other Intangible Assets [Line Items] | ||||
Reduced in goodwill | $ 32.4 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | $ 586.6 | $ 599.1 |
Accumulated Amortization, total other intangible assets | (466.4) | (455.8) |
Net Book Value, total other intangible assets | 120.2 | 143.3 |
Client Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 524.2 | 534.1 |
Accumulated Amortization, total other intangible assets | (423.2) | (412.4) |
Net Book Value, total other intangible assets | 101 | 121.7 |
Patents | ||
Finite Lived 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 | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 25.7 | 26.2 |
Accumulated Amortization, total other intangible assets | (25.1) | (25.2) |
Net Book Value, total other intangible assets | 0.6 | 1 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 34.7 | 36.8 |
Accumulated Amortization, total other intangible assets | (16.1) | (16.2) |
Net Book Value, total other intangible assets | $ 18.6 | $ 20.6 |
Restructuring and Other - Sched
Restructuring and Other - Schedule of Net Restructuring and Other Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | $ 2.8 | $ 10.7 | $ 11.2 | $ 19.5 |
Other Restructuring Charges | 6.6 | 1.1 | 12 | 3.8 |
Total Restructuring Charges | 9.4 | 11.8 | 23.2 | 23.3 |
Other | 1.1 | 21.5 | (2.1) | 21.7 |
Multi-Employer Pension Plan Charges | 0.5 | 0.5 | 1.7 | 1.7 |
Total | 11 | 33.8 | 22.8 | 46.7 |
Total Operating Segments | Business Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 2.7 | 4.2 | 8.8 | 9.6 |
Other Restructuring Charges | 3.6 | 0.9 | 5.7 | 3.1 |
Total Restructuring Charges | 6.3 | 5.1 | 14.5 | 12.7 |
Other | 0.4 | 0.2 | (4.3) | (0.1) |
Multi-Employer Pension Plan Charges | 0.4 | 0.4 | 1.4 | 1.4 |
Total | 7.1 | 5.7 | 11.6 | 14 |
Total Operating Segments | Marketing Solutions | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 0.1 | 1.4 | 1.9 | 2.6 |
Other Restructuring Charges | 0.3 | |||
Total Restructuring Charges | 0.1 | 1.4 | 1.9 | 2.9 |
Other | 21.3 | 1.5 | 21.8 | |
Multi-Employer Pension Plan Charges | 0.1 | 0.1 | 0.3 | 0.3 |
Total | 0.2 | 22.8 | 3.7 | 25 |
Corporate | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Employee Terminations | 5.1 | 0.5 | 7.3 | |
Other Restructuring Charges | 3 | 0.2 | 6.3 | 0.4 |
Total Restructuring Charges | 3 | 5.3 | 6.8 | 7.7 |
Other | 0.7 | 0.7 | ||
Total | $ 3.7 | $ 5.3 | $ 7.5 | $ 7.7 |
Restructuring and Other - Narra
Restructuring and Other - Narrative (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Facility | Sep. 30, 2017USD ($)Facility | Sep. 30, 2018USD ($)Facility | Sep. 30, 2017USD ($)Facility | |
Restructuring Cost And Reserve [Line Items] | ||||
Employee termination costs | $ 2.8 | $ 10.7 | $ 11.2 | $ 19.5 |
Other restructuring charges | $ 6.6 | $ 1.1 | 12 | $ 3.8 |
Facility Closures | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Impairment of other long lived assets | $ 3.3 | |||
Business Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of facilities closed | Facility | 3 | 3 | ||
Gain on sale of previously impaired assets | $ 5.4 | |||
Marketing Solutions | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of facilities closed | Facility | 1 | 1 | ||
Impairment of other long lived assets | $ 21.5 | $ 21.7 | ||
Goodwill impairment charges | $ 21.3 | $ 21.3 |
Restructuring and Other - Multi
Restructuring and Other - Multi-Employer Pension Plan Charges - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||||
Multi-employer pension plan charges | $ 0.5 | $ 0.5 | $ 1.7 | $ 1.7 | |
Accrued liabilities | 390.5 | 390.5 | $ 447.5 | ||
Other noncurrent liabilities | 202.1 | 202.1 | $ 180.2 | ||
Multi-employer pension plan withdrawal obligations | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accrued liabilities | 5.1 | 5.1 | |||
Other noncurrent liabilities | $ 29.6 | $ 29.6 |
Restructuring and Other - Sch_2
Restructuring and Other - Schedule of Changes in the Restructuring Reserve (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | $ 23.5 | |||
Restructuring Charges | $ 9.4 | $ 11.8 | 23.2 | $ 23.3 |
Foreign Exchange and Other | 0.8 | |||
Cash Paid | (24.2) | |||
Balance at the end | 23.3 | 23.3 | ||
Employee terminations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 9.6 | |||
Restructuring Charges | 11.2 | |||
Foreign Exchange and Other | (0.5) | |||
Cash Paid | (14.2) | |||
Balance at the end | 6.1 | 6.1 | ||
Multi-employer pension plan withdrawal obligations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 11 | |||
Restructuring Charges | 0.5 | |||
Cash Paid | (1.1) | |||
Balance at the end | 10.4 | 10.4 | ||
Lease terminations and other | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at the beginning | 2.9 | |||
Restructuring Charges | 11.5 | |||
Foreign Exchange and Other | 1.3 | |||
Cash Paid | (8.9) | |||
Balance at the end | $ 6.8 | $ 6.8 |
Restructuring and Other - Restr
Restructuring and Other - Restructuring Reserve - Narrative (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Restructuring And Related Activities [Abstract] | |
Current restructuring reserve (included in accrued liabilities) | $ 10.8 |
Noncurrent restructuring reserve (included in noncurrent liabilities) | $ 12.5 |
Retirement Plans - Components o
Retirement Plans - Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension expense (income) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.5 |
Interest cost | 7.7 | 8 | 23.4 | 23.7 |
Expected return on plan assets | (12.4) | (12.7) | (37.6) | (37.6) |
Amortization, net | 2 | 1.9 | 5.9 | 5.4 |
Settlements | (0.2) | (1.5) | ||
Net pension income | (2.4) | (2.7) | (6.3) | (8) |
OPEB expense (income) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | (0.3) | 0.4 | 0.5 | 1 |
Interest cost | 2.5 | 2.7 | 7.7 | 8.3 |
Expected return on plan assets | (3.5) | (3.4) | (10.5) | (10.1) |
Amortization, net | (0.8) | (0.7) | (2.2) | (2.2) |
Other | (5.1) | (5.1) | ||
Net pension income | $ (7.2) | $ (1) | $ (9.6) | $ (3) |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Contribution to retirement plans | $ 13.5 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 2.2 | $ 2.1 | $ 6.4 | $ 6.4 | |
Restricted stock units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual share-based compensation grants | 683,076 | ||||
Grant date fair value | $ 6.10 | ||||
Graded vesting period | 3 years | ||||
Dividend payable | $ 0 | ||||
Performance share units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual share-based compensation grants | 683,076 | ||||
Grant date fair value | $ 6.10 | ||||
Cliff vesting period | 34 months | ||||
Phantom stock units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual share-based compensation grants | 813,361 | ||||
Dividend payable | $ 0 | $ 0 | |||
Grant date share price | $ 7.31 | $ 7.31 | |||
Payment description | payable in three equal installments over a period of three years after the grant date | ||||
Payment term | 3 years |
Equity - Schedule of Equity Act
Equity - Schedule of Equity Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Line Items] | ||||
Beginning Balance | $ (202.9) | |||
Cumulative impact of adopting Topic 606, net of tax | 12.9 | |||
Net income | $ 34.8 | $ (7.8) | 12.9 | $ 19.1 |
Other comprehensive loss | (6.8) | $ 16.6 | (25.2) | $ (70.4) |
Share-based compensation | 6.4 | |||
Issuance of share-based awards, net of withholdings and other | (0.8) | |||
Cash dividends paid | (21.8) | |||
Distributions to noncontrolling interests | (1) | |||
Ending Balance | (219.5) | (219.5) | ||
RRD Stockholders' Equity | ||||
Equity [Line Items] | ||||
Beginning Balance | (217.6) | |||
Cumulative impact of adopting Topic 606, net of tax | 12.9 | |||
Net income | 11.7 | |||
Other comprehensive loss | (24.7) | |||
Share-based compensation | 6.4 | |||
Issuance of share-based awards, net of withholdings and other | (0.8) | |||
Cash dividends paid | (21.8) | |||
Distributions to noncontrolling interests | 0 | |||
Ending Balance | (233.9) | (233.9) | ||
Noncontrolling Interest | ||||
Equity [Line Items] | ||||
Beginning Balance | 14.7 | |||
Cumulative impact of adopting Topic 606, net of tax | 0 | |||
Net income | 1.2 | |||
Other comprehensive loss | (0.5) | |||
Share-based compensation | 0 | |||
Issuance of share-based awards, net of withholdings and other | 0 | |||
Cash dividends paid | 0 | |||
Distributions to noncontrolling interests | (1) | |||
Ending Balance | $ 14.4 | $ 14.4 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Detail) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) per share attributable to RRD common stockholders: | ||||
Basic | $ 0.49 | $ (0.11) | $ 0.17 | $ 0.26 |
Diluted | $ 0.49 | $ (0.11) | $ 0.17 | $ 0.26 |
Net income (loss) attributable to RRD common stockholders | $ 34.3 | $ (8) | $ 11.7 | $ 18.4 |
Basic weighted average number of common shares outstanding | 70.6 | 70.2 | 70.5 | 70.1 |
Dilutive options and awards | 0.1 | 0.3 | 0.2 | |
Diluted weighted average number of common shares outstanding | 70.7 | 70.2 | 70.8 | 70.3 |
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 1.2 | 2.4 | 1.5 | 1.7 |
Dividends declared per common share | $ 0.03 | $ 0.14 | $ 0.31 | $ 0.42 |
Stock options | ||||
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.7 | 1.3 | 0.9 | 1 |
Restricted stock units | ||||
Weighted average number of anti-dilutive share-based awards: | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.5 | 1.1 | 0.6 | 0.7 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Schedule of Components of Other Comprehensive (Loss) Income and Income Tax Expense (Benefit) Allocated to Each Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive loss, Before Tax Amount | $ (6.3) | $ 17.1 | $ (23.2) | $ (72.3) |
Other comprehensive loss, Income Tax | 0.5 | 0.5 | 2 | (1.9) |
Other comprehensive (loss) income | (6.8) | 16.6 | (25.2) | (70.4) |
Translation adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive loss, Before Tax Amount | (8.4) | 17.7 | (31.1) | 46.8 |
Other comprehensive loss, Income Tax | 0 | 0 | ||
Other comprehensive (loss) income | (8.4) | 17.7 | (31.1) | 46.8 |
Adjustment for net periodic pension and OPEB cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive loss, Before Tax Amount | 2.1 | 1.2 | 7.9 | 3.2 |
Other comprehensive loss, Income Tax | 0.5 | 0.5 | 2 | 1.1 |
Other comprehensive (loss) income | $ 1.6 | 0.7 | $ 5.9 | 2.1 |
Adjustments for available-for-sale securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive loss, Before Tax Amount | (1.8) | (122.3) | ||
Other comprehensive loss, Income Tax | (3) | |||
Other comprehensive (loss) income | $ (1.8) | $ (119.3) |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (202.9) | |||
Amounts reclassified from accumulated other comprehensive loss | $ 1 | $ 1.7 | 4.1 | $ (65.9) |
Ending Balance | (219.5) | (219.5) | ||
Pension and OPEB Cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (144.6) | (159.5) | ||
Other comprehensive income (loss) before reclassifications | 1.2 | |||
Amounts reclassified from accumulated other comprehensive loss | 4.1 | 2.1 | ||
Impact of adopting ASU 2018-02 | (22.1) | |||
Other | 0.6 | |||
Net change in accumulated other comprehensive loss | (16.2) | 2.1 | ||
Ending Balance | (160.8) | (157.4) | (160.8) | (157.4) |
Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 40.9 | (15.5) | ||
Other comprehensive income (loss) before reclassifications | (30.6) | 43.6 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 2.8 | 0 | 2.8 |
Net change in accumulated other comprehensive loss | (30.6) | 46.4 | ||
Ending Balance | 10.3 | 30.9 | 10.3 | 30.9 |
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (103.7) | (55.7) | ||
Other comprehensive income (loss) before reclassifications | (29.4) | (4.9) | ||
Amounts reclassified from accumulated other comprehensive loss | 4.1 | (65.9) | ||
Impact of adopting ASU 2018-02 | (22.1) | |||
Other | 0.6 | |||
Net change in accumulated other comprehensive loss | (46.8) | (70.8) | ||
Ending Balance | $ (150.5) | $ (126.5) | $ (150.5) | (126.5) |
Changes in the Fair Value of Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 119.3 | |||
Other comprehensive income (loss) before reclassifications | (48.5) | |||
Amounts reclassified from accumulated other comprehensive loss | (70.8) | |||
Net change in accumulated other comprehensive loss | $ (119.3) |
Other Comprehensive (Loss) In_5
Other Comprehensive (Loss) Income - Schedule of Reclassification From Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, net of tax | $ 1 | $ 1.7 | $ 4.1 | $ (65.9) |
Investment and other income-net | 5.5 | 6.9 | 14.7 | 59.6 |
Net Actuarial Loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment and other income-net | 2 | 1.9 | 5.9 | 5.4 |
Net Realized Loss, Before Tax | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | 0 | 2.8 | 0 | 2.8 |
Net Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment and other income-net | (0.8) | (0.7) | (2.2) | (2.2) |
Settlements | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment and other income-net | 0.2 | 1.5 | ||
Translation Adjustments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, net of tax | 0 | 2.8 | 0 | 2.8 |
Amortization of Pension and OPEB Cost | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications before tax | 1.4 | 1.2 | 5.2 | 3.2 |
Income tax expense benefit | 0.4 | 0.5 | 1.1 | 1.1 |
Reclassification, net of tax | 1 | 0.7 | 4.1 | 2.1 |
Available-for-Sale Securities, Net Realized Gain on Equity Securities, Before Tax | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense benefit | 0 | 0 | 18 | |
Reclassification, net of tax | 0 | (1.8) | 0 | (70.8) |
Available-for-Sale Securities, Net Realized Gain on Equity Securities, Before Tax | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment and other income-net | $ 0 | $ (1.8) | $ 0 | $ (52.8) |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 1,649.5 | $ 1,734.9 | $ 5,036.8 | $ 5,013.8 | |
Income (Loss) from Operations | 60.9 | 31.8 | 118.6 | 109.5 | |
Depreciation and amortization | 44.2 | 47 | 137.5 | 143.1 | |
Capital Expenditures | 72.7 | 77.2 | |||
Assets of Operations | 3,698 | 3,698 | $ 3,904.5 | ||
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 44.2 | 47 | 137.5 | 143.1 | |
Capital Expenditures | 24.7 | 23 | 72.7 | 77.2 | |
Assets of Operations | 3,698 | 3,698 | 3,904.5 | ||
Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,681.3 | 1,775.2 | 5,141.6 | 5,132.2 | |
Income (Loss) from Operations | 86.6 | 44.1 | 185.6 | 158.2 | |
Total Operating Segments | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 43.2 | 46 | 134 | 139.9 | |
Capital Expenditures | 17.3 | 18 | 59.7 | 62.1 | |
Assets of Operations | 3,462.4 | 3,462.4 | 3,706.5 | ||
Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | (31.8) | (40.3) | (104.8) | (118.4) | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) from Operations | (25.7) | (12.3) | (67) | (48.7) | |
Corporate | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 1 | 1 | 3.5 | 3.2 | |
Capital Expenditures | 7.4 | 5 | 13 | 15.1 | |
Assets of Operations | 235.6 | 235.6 | 198 | ||
Business Services | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,363.2 | 1,440.6 | 4,188.3 | 4,165.7 | |
Business Services | Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,385.7 | 1,471.5 | 4,265.4 | 4,257.6 | |
Income (Loss) from Operations | 74.8 | 51 | 152.9 | 152.8 | |
Business Services | Total Operating Segments | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 31.5 | 35 | 98.7 | 105 | |
Capital Expenditures | 14.6 | 16.3 | 51.6 | 50.7 | |
Assets of Operations | 2,784.3 | 2,784.3 | 2,989.5 | ||
Business Services | Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | (22.5) | (30.9) | (77.1) | (91.9) | |
Marketing Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 286.3 | 294.3 | 848.5 | 848.1 | |
Marketing Solutions | Total Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 295.6 | 303.7 | 876.2 | 874.6 | |
Income (Loss) from Operations | 11.8 | (6.9) | 32.7 | 5.4 | |
Marketing Solutions | Total Operating Segments | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 11.7 | 11 | 35.3 | 34.9 | |
Capital Expenditures | 2.7 | 1.7 | 8.1 | 11.4 | |
Assets of Operations | 678.1 | 678.1 | $ 717 | ||
Marketing Solutions | Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ (9.3) | $ (9.4) | $ (27.7) | $ (26.5) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | Sep. 30, 2018Facility |
Commitments And Contingencies Disclosure [Abstract] | |
Number of sites cited as potentially responsible party | 2 |
Number of previously and currently owned sites with potential remediation obligations | 6 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Borrowings under the Credit Agreement | $ 242 | $ 216 | |
Other | [1] | 50.2 | 10.8 |
Unamortized debt issuance costs | (9.7) | (11.6) | |
Total debt | 2,177.3 | 2,109.7 | |
Less: current portion | (222) | (10.8) | |
Long-term debt | 1,955.3 | 2,098.9 | |
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 | 238.4 | |
7.875% Senior Notes Due March 15, 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes | 447.4 | 447.2 | |
8.875% Debentures Due April 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debentures | 81 | 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 | 290.6 | |
6.00% Senior Notes Due April 1, 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes | 298.3 | 298.3 | |
6.625% Debentures Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Debentures | 157.9 | 157.9 | |
8.820% Debentures Due April 15, 2031 | |||
Debt Instrument [Line Items] | |||
Debentures | $ 69 | $ 69 | |
[1] | Includes other miscellaneous debt obligations, primarily at foreign subsidiaries, and capital leases. | ||
[2] | As of September 30, 2018 and December 31, 2017, 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 previous ratings downgrades. |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
11.25% Senior Notes Due February 1, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 11.25% | |
Maturity date | Feb. 1, 2019 | |
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% | |
Maturity date | Apr. 1, 2024 | |
6.625% Debentures Due April 15, 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 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 ($) | Oct. 15, 2018 | Sep. 29, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Amount of difference between fair value and book value | $ 52,600,000 | $ 52,600,000 | $ 18,800,000 | |||||
Loss on debt extinguishment | $ (6,500,000) | $ (100,000) | $ (20,100,000) | |||||
Weighted average interest rate on borrowings | 3.40% | 3.70% | ||||||
Interest paid, net of interest capitalized | 38,200,000 | 39,300,000 | $ 120,000,000 | $ 133,800,000 | ||||
Interest income from investments/other | $ 800,000 | $ 800,000 | $ 2,000,000 | $ 2,300,000 | ||||
7.625% Senior Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jun. 15, 2020 | |||||||
Debt instrument, interest rate | 7.625% | 7.625% | ||||||
7.625% Senior Notes Due 2020 | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jun. 15, 2020 | |||||||
Debt instrument, aggregate principal amount repurchased | $ 172,600,000 | |||||||
Debt instrument, interest rate | 7.625% | |||||||
7.875% Senior Notes Due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Mar. 15, 2021 | |||||||
Debt instrument, interest rate | 7.875% | 7.875% | ||||||
7.875% Senior Notes Due 2021 | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Mar. 15, 2021 | |||||||
Debt instrument, aggregate principal amount repurchased | $ 257,400,000 | |||||||
Debt instrument, interest rate | 7.875% | |||||||
7.625% Senior Notes Due 2020 and 7.875% Senior Notes Due 2021 | Scenario Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on debt extinguishment | $ 31,600,000 | |||||||
Tender premiums paid on repurchase of bonds | 29,000,000 | |||||||
Write-off of unamortized debt issuance costs on repurchase of bonds | 1,500,000 | |||||||
Fees and expenses on repurchase of bonds | $ 1,100,000 | |||||||
Term Loan Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jan. 15, 2024 | |||||||
Term Loan Credit Agreement | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of collateralize equity interest on first-tier foreign subsidiaries | 65.00% | |||||||
Principal payments | $ 1,400,000 | |||||||
Term Loan Credit Agreement | Subsequent Event | Eurocurrency | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 5.00% | |||||||
Term Loan Credit Agreement | Subsequent Event | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 4.00% | |||||||
Term Loan Credit Agreement | Senior Secured Term Loan B | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, aggregate principal amount | $ 550,000,000 | |||||||
Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of collateralize equity interest on first-tier foreign subsidiaries | 65.00% | |||||||
Maturity date | Sep. 29, 2022 | |||||||
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 ours and certain of our 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. | |||||||
Allowable annual dividend payment under credit agreement | $ 60,000,000 | $ 60,000,000 | ||||||
Borrowing capacity available under credit agreement | $ 445,200,000 | $ 445,200,000 | ||||||
Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.25% | |||||||
Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.375% | |||||||
Credit Agreement | Eurocurrency | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | |||||||
Credit Agreement | Eurocurrency | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.25% | |||||||
Credit Agreement | Eurocurrency | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.50% | |||||||
Credit Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | |||||||
Credit Agreement | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.25% | |||||||
Credit Agreement | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.50% | |||||||
Credit Agreement | Senior Secured Term Loan B | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Payment made for senior notes, transaction fees and borrowings | $ 5,500,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other | ||
Derivative [Line Items] | ||
Derivatives liabilities | $ 1 | |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivatives assets | 2.1 | $ 2.2 |
Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 124.2 | $ 215.9 |
Disposition - Narrative (Detail
Disposition - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Jul. 02, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business | $ 50.5 | |||
Disposition by Sale | Business Services | Print Logistics | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash on disposition of business | $ 60 | |||
Proceeds from sale of business | $ 55.1 | |||
Cash included in disposition | 4.9 | 4.9 | ||
Pre-tax gain resulted from disposition of business | $ 4.5 | $ 4.5 | ||
Disposition by Sale | Business Services | Print Logistics | Scenario Forecast | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Final working capital adjustment | $ 6.9 |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Item Effected [Line Items] | |||||
Total net sales | $ 1,649.5 | $ 1,734.9 | $ 5,036.8 | $ 5,013.8 | |
Total gross profit | 315.4 | 323.5 | 900.7 | 952.3 | |
Inventories | (361.8) | (361.8) | $ (416.8) | ||
Accrued liabilities | (390.5) | (390.5) | (447.5) | ||
Stockholders equity | (233.9) | (233.9) | $ (217.6) | ||
Accounting Standards Update 2018 02 | |||||
Item Effected [Line Items] | |||||
Expect to decrease accumulated deficit and increase accumulated other comprehensive loss | 22.1 | ||||
Accounting Standards Update 2017 07 | Cost of Sales | |||||
Item Effected [Line Items] | |||||
Operating change by adoption of new accounting standard | (0.9) | (3) | |||
Accounting Standards Update 2017 07 | Selling, General and Administrative Expenses | |||||
Item Effected [Line Items] | |||||
Operating change by adoption of new accounting standard | (3.2) | (9.4) | |||
Accounting Standards Update 2017 07 | Investment And Other Income Net | |||||
Item Effected [Line Items] | |||||
Operating change by adoption of new accounting standard | $ 4.1 | $ 12.4 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
Item Effected [Line Items] | |||||
Total net sales | 3.7 | 9.6 | |||
Total gross profit | 1.8 | 2.7 | |||
Inventories | 71.9 | 71.9 | |||
Accrued liabilities | 87.9 | 87.9 | |||
Stockholders equity | $ 15.6 | $ 15.6 |