Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Entity Central Index Key | 0001481792 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-34806 | ||
Entity Registrant Name | QUAD/GRAPHICS, INC. | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1152983 | ||
Entity Address, Address Line One | N61 W23044 Harry’s Way | ||
Entity Address, City or Town | Sussex | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53089-3995 | ||
City Area Code | 414 | ||
Local Phone Number | 566-6000 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.025 per share | ||
Trading Symbol | QUAD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 97,681,109 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the registrant’s 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. | ||
Common Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 39,865,322 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,556,858 | ||
Common Class C | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Auditor Information [Abstract] | ||
Auditor Name | Ernst & Young LLP | Deloitte & Touche LLP |
Auditor Location | Milwaukee, Wisconsin | Milwaukee, Wisconsin |
Auditor Firm ID | 42 | 34 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | ||
Net sales | $ 3,217 | $ 2,960.4 |
Cost of sales | ||
Cost of sales | 2,618.8 | 2,389.9 |
Operating expenses | ||
Selling, general and administrative expenses | 358.6 | 326 |
Sale and leaseback transaction, gain (loss), net | 0 | 24.5 |
Depreciation and amortization | 141.3 | 157.3 |
Restructuring, impairment and transaction-related charges | 44.8 | 18.9 |
Total operating expenses | 3,163.5 | 2,867.6 |
Operating income | 53.5 | 92.8 |
Interest expense | 48.4 | 59.6 |
Net pension income | (12.6) | (14.5) |
Loss on debt extinguishment | 0 | 0.7 |
Earnings before income taxes and equity in earnings of unconsolidated entity | 17.7 | 47 |
Income tax expense | 8.4 | 9.5 |
Earnings before equity in earnings of unconsolidated entity | 9.3 | 37.5 |
Equity in earnings of unconsolidated entity | 0 | (0.3) |
Net earnings | $ 9.3 | $ 37.8 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.18 | $ 0.74 |
Diluted (in dollars per share) | $ 0.18 | $ 0.71 |
Weighted average number of common shares outstanding | ||
Basic (in shares) | 50.7 | 51.3 |
Diluted (in shares) | 52.5 | 53 |
Product | ||
Net sales | ||
Net sales | $ 2,528.3 | $ 2,247.1 |
Cost of sales | ||
Cost of sales | 2,156.2 | 1,861 |
Service | ||
Net sales | ||
Net sales | 688.7 | 713.3 |
Cost of sales | ||
Cost of sales | $ 462.6 | $ 528.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 9.3 | $ 37.8 |
Translation adjustments | ||
Foreign currency translation adjustments | (3.2) | (8.2) |
Translation of long-term loans to foreign subsidiaries | 0.9 | (1.1) |
Revaluation loss from the dissolution of an equity method investment entity | 29.4 | 0 |
Total translation adjustments | 27.1 | (9.3) |
Reclassification of foreign currency translation adjustments | 27.3 | (2.7) |
Pension benefit plan liability adjustments, net of tax | 3.4 | 7.1 |
Pension benefit plan adjustments | ||
Net gain (loss) arising during period | (30.7) | 20.4 |
Settlement charge on pension benefit plans included in net earnings | 0 | 0.9 |
Total pension benefit plan adjustments | (30.7) | 21.3 |
Other comprehensive income, before tax | 27.1 | 16.4 |
Income tax impact related to items of other comprehensive income | 5.8 | (6.3) |
Other comprehensive income, net of tax | 32.9 | 10.1 |
Total comprehensive income | $ 42.2 | $ 47.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 25.2 | $ 179.9 |
Receivables, less allowances for credit losses of $26.4 million at December 31, 2022, and $28.2 million at December 31, 2021 | 372.6 | 362 |
Inventories | 260.7 | 226.2 |
Prepaid expenses and other current assets | 46 | 41 |
Total current assets | 704.5 | 809.1 |
Property, plant and equipment—net | 672.1 | 727 |
Operating lease right-of-use assets—net | 111.1 | 125.7 |
Goodwill | 86.4 | 86.4 |
Other intangible assets—net | 46.9 | 75.3 |
Other long-term assets | 80.8 | 66.5 |
Total assets | 1,701.8 | 1,890 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 456.6 | 367.3 |
Other current liabilities | 249.1 | 314.3 |
Short-term debt and current portion of long-term debt | 61.1 | 245.6 |
Current portion of finance lease obligations | 0.8 | 1.8 |
Current portion of operating lease obligations | 27.8 | 28.1 |
Total current liabilities | 795.4 | 957.1 |
Long-term debt | 506.7 | 554.9 |
Finance lease obligations | 1.6 | 1.4 |
Operating lease obligations | 87.1 | 99.8 |
Deferred income taxes | 9.3 | 11.9 |
Other long-term liabilities | 128.8 | 128.1 |
Total liabilities | 1,528.9 | 1,753.2 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity (Note 17) | ||
Additional paid-in capital | 841.8 | 839.3 |
Treasury stock, at cost, 3.9 million shares at December 31, 2022, and 1.4 million shares at December 31, 2021 | (23.5) | (14.9) |
Accumulated deficit | (518.5) | (527.8) |
Accumulated other comprehensive loss | (128.3) | (161.2) |
Total shareholders’ equity | 172.9 | 136.8 |
Total liabilities and shareholders’ equity | 1,701.8 | 1,890 |
Preferred Stock | ||
Shareholders’ equity (Note 17) | ||
Preferred stock, $0.01 par value; Authorized: 0.5 million shares; Issued: None | 0 | 0 |
Common Class A | ||
Shareholders’ equity (Note 17) | ||
Common stock, value, issued | 1 | 1 |
Common Class B | ||
Shareholders’ equity (Note 17) | ||
Common stock, value, issued | 0.4 | 0.4 |
Common Class C | ||
Shareholders’ equity (Note 17) | ||
Common stock, value, issued | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts | $ 26.4 | $ 28.2 | $ 33.8 |
Preferred stock, par value (in dollars per shares) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 500,000 | 500,000 | |
Preferred stock, shares issued | 0 | 0 | |
Treasury stock, shares | 3,900,000 | 1,400,000 | |
Common Class A | |||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 | |
Common stock, shares authorized | 105,000,000 | 105,000,000 | |
Common stock, shares issued | 42,600,000 | 41,700,000 | |
Treasury stock, shares | 3,400,000 | 900,000 | |
Common Class B | |||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 | |
Common stock, shares authorized | 80,000,000 | 80,000,000 | |
Common stock, shares issued | 13,500,000 | 13,500,000 | |
Treasury stock, shares | 0 | 0 | |
Common Class C | |||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 | |
Common stock, shares authorized | 20,000,000 | 20,000,000 | |
Common stock, shares issued | 500,000 | 500,000 | |
Treasury stock, shares | 500,000 | 500,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 9.3 | $ 37.8 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 141.3 | 157.3 |
Impairment charges | 2.2 | 34.9 |
Reclassification of foreign currency translation adjustments | 0 | (2.7) |
Settlement charges on pension plan | 0 | 0.9 |
Amortization of debt issuance costs and original issue discount | 2.2 | 3 |
Loss on debt extinguishment | 0 | 0.7 |
Stock-based compensation | 6 | 6.2 |
Gain on the sale or disposal of property, plant and equipment | (2.3) | (49) |
(Gain) loss on the sale of a business | 23.1 | (20.9) |
Gain from a property insurance claim | 0 | (13.4) |
Deferred income taxes | 2.4 | 5.3 |
Equity in earnings of unconsolidated entity | 0 | (0.3) |
Changes in operating assets and liabilities—net of acquisitions and divestitures: | ||
Receivables | (18.6) | 12.7 |
Inventories | (41.1) | (58.3) |
Prepaid expenses and other current assets | 3 | 8.1 |
Accounts payable and other current liabilities | 63.9 | 49 |
Other | (36.8) | (34.8) |
Net cash provided by operating activities | 154.6 | 136.5 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (60.3) | (50) |
Cost investment in unconsolidated entities | (3.3) | (1.4) |
Proceeds from the sale of property, plant and equipment | 4.6 | 126.3 |
Proceeds from the sale of a business | 0 | 39.7 |
Proceeds from a property insurance claim | 0 | 15 |
Acquisition of a business | (2.6) | 0 |
Other investing activities | 1.1 | (0.2) |
Net cash (used in) provided by investing activities | (60.5) | 129.4 |
FINANCING ACTIVITIES | ||
Payments of current and long-term debt | (235.9) | (139.5) |
Payments of finance lease obligations | (2.1) | (3) |
Borrowings on revolving credit facilities | 995.7 | 445.1 |
Payments on revolving credit facilities | (995) | (440.5) |
Proceeds from issuance of long-term debt | 3.1 | 15.9 |
Payments of debt issuance costs and financing fees | 0 | (5.9) |
Change in ownership of noncontrolling interests | 0 | (1.9) |
Purchases of treasury stock | (10) | 0 |
Equity awards redeemed to pay employees’ tax obligations | (2.5) | (1.1) |
Payment of cash dividends | (1.4) | (1.4) |
Other financing activities | (0.6) | (8.6) |
Net cash used in financing activities | (248.7) | (140.9) |
Effect of exchange rates on cash and cash equivalents | (0.1) | (0.3) |
Net increase (decrease) in cash and cash equivalents | (154.7) | 124.7 |
Cash and cash equivalents at beginning of year | 179.9 | 55.2 |
Cash and cash equivalents at end of year | $ 25.2 | $ 179.9 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Quad’s Shareholders’ Equity | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance, shares at Dec. 31, 2020 | 54.4 | (0.8) | ||||||
Beginning balance, Quad's shareholders equity at Dec. 31, 2020 | $ 84.1 | $ 1.4 | $ 833.1 | $ (13.1) | $ (566) | $ (171.3) | ||
Beginning balance, noncontrolling interests at Dec. 31, 2020 | $ 0.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 37.8 | 37.8 | ||||||
Change in ownership of noncontrolling interests | (0.9) | (0.9) | (0.7) | |||||
Foreign currency translation adjustments | (9.6) | (9.6) | ||||||
Reclassification of foreign currency translation adjustments | $ (2.7) | (2.7) | (2.7) | |||||
Reclassification of foreign currency translation adjustments | (16.8) | (16.8) | ||||||
Pension benefit plan liability adjustments, net of tax | 7.1 | (5.6) | 5.6 | |||||
Accrual reversal for cash dividends declared | 0.4 | 0.4 | ||||||
Accrual reversal for cash dividends declared | 6.2 | 6.2 | ||||||
Issuance of share-based awards, net of other activity, shares | 1.3 | (0.4) | ||||||
Issuance of share-based awards, net of other activity | 0.2 | 0.9 | $ (0.7) | |||||
Equity awards redeemed to pay employees' tax obligations, shares | (0.2) | |||||||
Equity awards redeemed to pay employees’ tax obligations | (1.1) | $ (1.1) | ||||||
Ending balance, shares at Dec. 31, 2021 | 55.7 | (1.4) | ||||||
Ending balance, Quad's shareholders' equity at Dec. 31, 2021 | 136.8 | $ 1.4 | 839.3 | $ (14.9) | (527.8) | (161.2) | ||
Ending balance, noncontrolling interests at Dec. 31, 2021 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 9.3 | 9.3 | ||||||
Foreign currency translation adjustments | 27.2 | 27.2 | ||||||
Reclassification of foreign currency translation adjustments | 27.3 | 27.3 | 27.3 | |||||
Reclassification of foreign currency translation adjustments | (24.2) | (24.2) | ||||||
Pension benefit plan liability adjustments, net of tax | $ 3.4 | 2.6 | 2.6 | |||||
Accrual reversal for cash dividends declared | 5.8 | 5.8 | ||||||
Purchases of treasury stock, shares | (3.1) | |||||||
Purchases of treasury stock | (10) | $ (10) | ||||||
Issuance of share-based awards, net of other activity, shares | 0.9 | 1 | ||||||
Issuance of share-based awards, net of other activity | 0.6 | (3.3) | $ 3.9 | |||||
Equity awards redeemed to pay employees' tax obligations, shares | (0.4) | |||||||
Equity awards redeemed to pay employees’ tax obligations | (2.5) | $ (2.5) | ||||||
Ending balance, shares at Dec. 31, 2022 | 56.6 | (3.9) | ||||||
Ending balance, Quad's shareholders' equity at Dec. 31, 2022 | $ 172.9 | $ 1.4 | $ 841.8 | $ (23.5) | $ (518.5) | $ (128.3) | ||
Ending balance, noncontrolling interests at Dec. 31, 2022 | $ 0 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Pension benefit plan liability adjustments, tax benefit | $ 6.5 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations —Quad is a global marketing experience company that gives brands a more streamlined, impactful, flexible and frictionless way to go to market and reach consumers. The Company leverages its three key competitive advantages — integrated marketing platform excellence, ongoing innovation, and culture and social purpose — to create a better way for its clients, employees and communities. With a marketing platform intentionally built for integrated marketing execution, Quad helps brands reduce the complexity of working with multiple agency partners and vendors; increase marketing process efficiency; and maximize marketing effectiveness. The Company’s holistic, multichannel, through-the-line marketing solutions include strategy and consulting, data and analytics, technology solutions, media services, creative and content solutions, and managed services. With unmatched scale for client-based, on-site services and highly qualified talent with expansive subject matter expertise, the Company has the resources and knowledge to help a wide variety of clients across multiple verticals, including those in industries such as retail, publishing, consumer packaged goods, financial services, healthcare, insurance and direct-to-consumer. Principles of Consolidation and Basis of Presentation —The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned controlled subsidiaries and have been prepared in accordance with GAAP. The results of operations and accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. Investments in entities where the Company has both the ability to exert significant influence but not control and an ownership interest of 50% or less but more than 20% are accounted for using the equity method of accounting. Investments in entities where the Company does not exert significant influence or control and has an ownership interest of less than 20% are accounted for using the cost method of accounting. Intercompany transactions and balances have been eliminated in consolidation. Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into United States dollars at the exchange rate existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive income (loss) on the consolidated statements of shareholders’ equity, while transaction gains and losses are recorded in selling, general and administrative expenses on the consolidated statements of operations. Foreign exchange transactions resulted in losses of $2.1 million and $2.9 million during the years ended December 31, 2022 and 2021, respectively. The Company had a 49% interest in Plural, a commercial printer based in São Paulo, Brazil, as of December 31, 2021 and through the date of the Company’s sale of the investment in Plural in January 2022. The Company accounted for this entity using the equity method of accounting. The Company’s equity in the earnings of Plural’s operations was recorded in equity in earnings of unconsolidated entity in the Company’s consolidated statements of operations, and was included within the International segment. As a result of the planned sale, the Company recorded a $32.1 million impairment charge during the year ended December 31, 2021. Quad has no unconsolidated entities as of December 31, 2022. Use of Estimates —The preparation of consolidated financial statements requires the use of management’s estimates and assumptions that affect the reported assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to: allowances for doubtful accounts, inventory obsolescence, asset valuations and useful lives, pension benefits, self-insurance reserves, stock-based compensation, taxes, restructuring and other provisions and contingencies. Revenue Recognition —The Company recognizes its products and services revenue based on when the transfer of control passes to the customer or when the service is completed and accepted by the customer. Under agreements with certain customers, products may be stored by the Company for future delivery and revenue is recognized upon shipment to the customer. In these situations, the Company may receive warehouse management fees for the services it provides. Product returns are not significant because the products are customized; however, the Company accrues for the estimated amount of customer allowances at the time of sale based on historical experience and known trends. Revenue from services is recognized as services are performed. Revenues related to the Company’s imaging operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer. Revenues related to the Company’s logistics operations, which includes the delivery of printed material, are recognized upon completion of services. Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross as a principal or net of related costs as an agent. Billings for third-party shipping and handling costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross in net sales and cost of sales in the consolidated statements of operations. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper. Revenues for Company-supplied paper are recognized on a gross basis. Financial Instruments —The Company uses derivative financial instruments for the purpose of hedging interest rate, commodity and foreign exchange exposures that exist as part of ongoing business operations, including interest rate swap and collar agreements, natural gas forward purchase contracts and foreign exchange contracts. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. Derivative instruments are recorded on the consolidated balance sheets as either assets or liabilities measured at their fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings. The ineffective portions of the changes in the fair value of hedges are recognized in earnings. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the consolidated statements of cash flows in the same category as the item being hedged. Fair Value Measurement —The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. See Note 13, “Financial Instruments and Fair Value Measurements,” for further discussion. Research and Development —Research and development costs related to the development of new products or the adaptation of existing products are expensed as incurred, included in cost of sales and totaled $3.3 million and $3.1 million during the years ended December 31, 2022 and 2021, respectively. Cash and Cash Equivalents and Restricted Cash —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Receivables —Receivables are stated net of allowances for credit losses. No single customer comprised more than 5% of the Company’s consolidated net sales in 2022 or 2021, or 5% of the Company’s consolidated receivables as of December 31, 2022 or 2021. In accordance with ASC 326— Financial Instruments — Credit Losses (“ASC 326”), the Company measures expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable forecasts. See Note 5, “Receivables,” for further discussion on the transactions affecting the allowances for doubtful accounts. Inventories —Inventories include material, labor, and plant overhead and are stated at the lower of cost or net realizable value. At December 31, 2022 and 2021, all inventories were valued using the first-in, first-out method. See Note 6, “Inventories,” for the components of the Company’s inventories. Leases —Leases are accounted for under the right-of-use model, which requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. See Note 11, “Leases,” for additional accounting policies. Property, Plant and Equipment —Property, plant and equipment are recorded at cost, and are depreciated over the estimated useful lives of the assets using the straight-line method for financial reporting purposes. See Note 7, “Property, Plant and Equipment,” for the components of the Company’s property, plant and equipment. Major improvements that extend the useful lives of existing assets are capitalized and charged to the asset accounts. Repairs and maintenance, which do not significantly improve or extend the useful lives of the respective assets, are expensed as incurred. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. When an asset is retired or disposed, the associated costs and accumulated depreciation are eliminated, and the resulting gain or loss is recognized in the Company’s consolidated statements of operations. Asset Category Range of Useful Lives Buildings 10 to 40 Years Machinery and equipment 3 to 15 Years Other 3 to 10 Years Other Intangible Assets —Identifiable intangible assets are recognized apart from goodwill and are amortized over their estimated useful lives. Impairment of Long-Lived and Other Intangible Assets —The Company evaluates long-lived assets and other intangible assets (of which the most significant are property, plant and equipment; right-of-use assets and customer relationship intangible assets) whenever events and circumstances have occurred that indicate the carrying value of an asset may not be recoverable. Determining whether impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount and the asset’s residual value, if any. In turn, assessing whether there is an impairment loss requires a determination of recoverability, which is generally estimated by the ability to recover the balance of the assets from expected future operating cash flows on an undiscounted basis. If impairment is determined to exist, any related impairment loss is calculated based on the difference in the fair value and carrying value of the asset. Goodwill —Goodwill is reviewed annually for impairment as of October 31, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. In performing this analysis, the Company compares each reporting unit’s fair value to its carrying value. The fair value is estimated based on comparable company market valuations and/or expected future discounted cash flows to be generated by the reporting unit. If the carrying value exceeds the reporting unit’s fair value, an impairment loss would be charged to operations in the period identified. See Note 4, “Goodwill and Other Intangible Assets,” for further discussion. Workers’ Compensation —The Company is self-insured for a significant portion of its expected workers’ compensation program. Insurance is purchased for individual workers’ compensation claims that exceed $0.8 million. The Company establishes reserves for unresolved claims and for an estimate of incurred but not reported (“IBNR”) claims. These reserves and estimates of IBNR claims are based upon an actuarial study, which is performed annually as of October 31st and is adjusted by the actuarially determined losses and actual claims payments for November and December. The Company also monitors actual claim developments, including incurrence or settlement of individual large claims during the interim periods between actuarial studies as another means of estimating the adequacy of the reserves. As of December 31, 2022, the Company has net reserves for workers’ compensation of $29.9 million, of which $6.6 million was recorded in other current liabilities and $34.5 million was recorded in other long-term liabilities in the consolidated balance sheets (see Note 8, “Other Current and Long-Term Liabilities”). These reserves are net of $11.2 million recorded in other long-term assets in the consolidated balance sheets for estimated claims covered by purchased insurance. As of December 31, 2021, the Company had net reserves for workers’ compensation of $34.2 million, of which $7.5 million was recorded in other current liabilities and $40.1 million was recorded in other long-term liabilities in the consolidated balance sheets (see Note 8, “Other Current and Long-Term Liabilities”). These reserves were net of $13.4 million recorded in other long-term assets in the consolidated balance sheets for estimated claims covered by purchased insurance. Income Taxes —The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of items reported in the financial statements. Under this method, deferred tax assets and liabilities are measured based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the effective date of enactment. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. This determination is based upon all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent financial operations. If the Company determines that a deferred income tax asset will not be fully realized in the future, then a valuation allowance is established or increased to reflect the amount at which the asset will more likely than not be realized, which would increase the Company’s provision for income taxes. In a period after a valuation allowance has been established, if the Company determines the related deferred income tax assets will be realized in the future in excess of their net recorded amount, then an adjustment to reduce the related valuation allowance will be made, which would reduce the Company’s provision for income taxes. The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its consolidated financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is more likely than not of being recognized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The determination of the Company’s worldwide tax provision and related tax assets and liabilities requires the use of significant judgment in estimating the impact of uncertainties in the application of GAAP and the interpretation of complex tax laws. In the ordinary course of business, there are transactions and calculations where the final tax outcome is uncertain. Where fair market value is required to measure a tax asset or liability for GAAP purposes, the Company periodically obtains independent, third party assistance to validate that such value is determined in conformity with Internal Revenue Service fair market value guidelines. While the Company believes it has the appropriate support for the positions taken, certain positions may be successfully challenged by taxing authorities. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on the Company’s financial condition and operating results. The Company applies the provisions of the authoritative guidance on accounting for uncertain tax positions to determine the appropriate amount of tax benefits to be recognized with respect to uncertain tax positions. The determination of the Company’s worldwide tax provision includes the impact of any changes to the amount of tax benefits recognized with respect to uncertain tax positions. See Note 12, “Income Taxes,” for further discussion. Pension Plans —The Company assumed certain frozen underfunded defined benefit pension plans as part of the 2010 World Color Press acquisition. Pension plan costs are determined using actuarial methods and are funded through contributions. The Company records amounts relating to its pension plans based on calculations which include various actuarial assumptions including discount rates, assumed rates of return, and mortality. The Company reviews its actuarial assumptions on an annual basis and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the consolidated balance sheets, but are generally amortized into operating income over future periods, with the deferred amount recorded in accumulated other comprehensive loss on the consolidated balance sheets. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. For the purposes of calculating the expected return on plan assets, those assets are valued at fair value. When an event gives rise to both a curtailment and a settlement, the curtailment is accounted for prior to the settlement. The Company’s measurement date to measure the defined benefit plan assets and the projected benefit obligation is December 31. The Company has previously participated in MEPPs as a result of the acquisition of World Color Press. Due to the significant underfunded status of the MEPPs, the Company has withdrawn from all significant MEPPs and replaced these union sponsored “promise to pay in the future” defined benefit plans with a Company sponsored “pay as you go” defined contribution plan, which is the form of retirement benefit provided to Quad’s employees. As a result of the decision to withdraw, the Company recorded a withdrawal liability for the MEPPs based on information received from the MEPPs’ trustees. See Note 14, “Employee Retirement Plans,” for further discussion. Stock-Based Compensation —The Company recognizes stock-based compensation expense over the vesting period for all stock-based awards made to employees and directors based on the fair value of the instrument at the time of grant. Equity awards accounted for as liabilities are recorded at fair value on the initial issuance date and are remeasured to fair value at each reporting period, with the change in fair value being recorded in selling, general and administrative expense in the consolidated statements of operations. See Note 16, “Equity Incentive Programs,” for further discussion. Accumulated Other Comprehensive Income (Loss) —Accumulated other comprehensive income (loss) consists primarily of unrecognized actuarial gains and losses and prior service costs for pension plans, foreign currency translation adjustments and interest rate swap adjustments, and is presented in the consolidated statements of shareholders’ equity. See Note 18, “Accumulated Other Comprehensive Loss,” for further discussion. COVID-19 Pandemic Impacts and Response— Throughout the COVID-19 pandemic, the Company implemented cost reduction and cash conservation initiatives in response to the pandemic’s adverse impact on its business, financial condition, cash flows, results of operations, supply chain and raw materials availability. With ongoing advancements against the COVID-19 pandemic, the effects on the Company have lessened from previous periods, particularly from the heavily impacted year of 2020. The COVID-19 pandemic weakened demand for the Company’s products and services, disrupted the Company’s supply chain and resulted in rising inflationary cost and labor pressures, distribution challenges, recessionary concerns and other evolving macroeconomic conditions. The Company continues to evaluate the current economic environment and may implement additional cost reduction measures as necessary. Supplemental Cash Flow Information —The following table summarizes certain supplemental cash flow information for the years ended December 31, 2022 and 2021: 2022 2021 Interest paid, net of amounts capitalized $ 44.0 $ 41.8 Income taxes paid 6.2 4.3 Non-cash investing and financing activities: Non-cash finance lease additions 1.1 1.4 Non-cash operating lease additions 17.6 74.6 Acquisition of a business: Fair value of assets acquired 5.0 — Liabilities assumed (2.4) — Acquisition of a business $ 2.6 $ — |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Disaggregation The following table provides information about disaggregated revenue by the Company’s operating segments and major products and services offerings for the years ended December 31, 2022 and 2021: United States Print International Total Year ended December 31, 2022 Catalog, publications, retail inserts and directories $ 1,476.3 $ 282.5 $ 1,758.8 Direct mail and other printed products 640.6 118.2 758.8 Other 9.7 1.0 10.7 Total Products 2,126.6 401.7 2,528.3 Logistics services 310.4 19.3 329.7 Marketing services and medical services 357.7 1.3 359.0 Total Services 668.1 20.6 688.7 Total Net Sales $ 2,794.7 $ 422.3 $ 3,217.0 Year ended December 31, 2021 Catalog, publications, retail inserts and directories $ 1,368.6 $ 231.5 $ 1,600.1 Direct mail and other printed products 558.9 78.8 637.7 Other 8.3 1.0 9.3 Total Products 1,935.8 311.3 2,247.1 Logistics services 345.8 19.5 365.3 Marketing services and medical services 347.0 1.0 348.0 Total Services 692.8 20.5 713.3 Total Net Sales $ 2,628.6 $ 331.8 $ 2,960.4 Nature of Products and Services The Company recognizes its products and services revenue based on when the transfer of control passes to the client or when the service is completed and accepted by the client. The products offering is predominantly comprised of the Company’s print operations which includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products and global paper procurement. The Company considers its logistic operations as services, which include the delivery of printed material. The services offering also includes revenues related to the Company’s marketing services operations, which include data and analytics, technology solutions, media services, creative and content solutions, managed services and execution in non-print channels (e.g., digital and broadcast), as well as medical services. Performance Obligations At contract inception, the Company assesses the products and services promised in its contracts with customers and identifies performance obligations for each promise to transfer to the customer a product or service that is distinct. To identify the performance obligations, the Company considers the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company determined that the following distinct products and services represent separate performance obligations: • Pre-Press Services • Print • Other Services For Pre-Press and Other Services, the Company recognizes revenue at point-in-time upon completion of the performed service and acceptance by the customer. The Company considers transfer of control to occur once the service is performed as the Company has right to payment and the customer has legal title and risk and reward of ownership. The Company recognizes its Print revenues upon transfer of title and the passage of risk of loss, which is point-in-time upon shipment to the customer, and when there is a reasonable assurance as to collectability. Revenues related to the Company’s logistics operations, which includes the delivery of printed material, are included in the Print performance obligation and are also recognized at point-in-time as services are completed. Revenues related to the Company’s imaging operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer. Under agreements with certain customers, products may be stored by the Company for future delivery and revenue is recognized upon shipment to the customer. In these situations, the Company may receive warehouse management fees for the services it provides. Revenue from warehouse management fees was immaterial for the years ended December 31, 2022 and 2021. Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross as principal or net of related costs as an agent. Billings for third-party shipping and handling costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross in net sales and cost of sales in the consolidated statements of operations. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper. Revenues for the Company-supplied paper are recognized on a gross basis. In some cases, the Company will print items that are mailed to consumers and bill the customer for postage. In these cases, the Company is acting as an agent and billings are recorded on a net basis in net sales. Significant Payment Terms Payment terms and conditions for contracts with customers vary. The Company typically offers standard terms of net 30 days. It is not the Company’s standard business practice to offer extended payment terms longer than one year. The Company may offer cash discounts or prepayment and extended terms depending on certain facts and circumstances. As such, when the timing of the Company’s delivery of products and services differs from the timing of payment, the Company will record either a contract asset or a contract liability. Variable Consideration When evaluating the transaction price, the Company analyzes on a contract by contract basis all applicable variable considerations and non-cash consideration and also performs a constraint analysis. The nature of the Company’s contracts give rise to variable consideration, including, volume rebates, credits, discounts, and other similar items that generally decrease the transaction price. These variable amounts generally are credited to the customer, based on achieving certain levels of sales activity, when contracts are signed, or making payments within specific terms. Product returns are not significant because the products are customized; however, the Company accrues for the estimated amount of customer allowances at the time of sale based on historical experience and known trends. When the transaction price requires allocation to multiple performance obligations, the Company uses the estimated stand-alone selling prices using the adjusted market assessment approach. Costs to Obtain Contracts In accordance with ASC 606 — Revenue from Contracts with Customers (“ASC 606”), the Company capitalizes certain sales incentives of the sales compensation packages for costs that are directly attributed to being awarded a client contract or renewal and would not have been incurred had the contract not been obtained. The Company also defers certain contract acquisition costs paid to the client at contract inception. Costs to obtain contracts with a duration of less than one year are expensed as incurred. For all contract costs with contracts over one year, the Company amortizes the costs to obtain contracts on a straight-line basis over the estimated life of the contract and reviews quarterly for impairment. Activity impacting costs to obtain contracts for the year ended December 31, 2022, was as follows: Costs to Obtain Contracts Balance at January 1, 2022 $ 5.1 Costs to obtain contracts 0.4 Amortization of costs to obtain contracts (2.2) Balance at December 31, 2022 $ 3.3 Practical Expedients The Company has elected to apply the following practical expedients allowed under ASC 606: • For certain performance obligations related to print contracts, the Company has elected not to disclose the value of unsatisfied performance obligations for the following: (1) contracts that have an original expected length of one year or less; (2) contracts where revenue is recognized as invoiced; or (3) contracts with variable consideration related to unsatisfied performance obligations. The Company had no volume commitments in contracts that extend beyond one year as of December 31, 2022. • The Company expenses costs to obtain contracts as incurred when the contract duration is less than one year. • The transaction amount is not adjusted for a significant financing component as the period between transfer of the products or services and payment is less than one year. • The Company accounts for shipping and handling activities, which includes postage, that occur after control of the related products or services transfers to the customer as fulfillment activities and are therefore recognized at time of shipping. • The Company excludes from its transaction price any amounts collected from customers for sales taxes. |
Restructuring, Impairment and T
Restructuring, Impairment and Transaction-Related Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Transaction-Related Charges | Restructuring, Impairment and Transaction-Related Charges The Company recorded restructuring, impairment and transaction-related charges for the years ended December 31, 2022 and 2021, as follows: 2022 2021 Employee termination charges $ 7.3 $ 9.9 Impairment charges 2.2 34.9 Transaction-related charges 2.0 0.6 Integration costs 0.7 — Other restructuring charges 32.6 (26.5) Total $ 44.8 $ 18.9 The costs related to these activities have been recorded on the consolidated statements of operations as restructuring, impairment and transaction-related charges. See Note 19, “Segment Information,” for restructuring, impairment and transaction-related charges by segment. Restructuring Charges The Company has a restructuring program related to eliminating excess manufacturing capacity and properly aligning its cost structure. The Company classifies the following charges as restructuring: • Employee termination charges are incurred when the Company reduces its workforce through facility consolidations and separation programs. • Integration costs are incurred primarily for the integration of acquired companies. • Other restructuring charges are presented net of the gains or losses on the sale of facilities and businesses. During the year ended December 31, 2021, the Company recognized gains from the sale of the facilities located in Riverside, California, Oklahoma City, Oklahoma, and Fernley, Nevada. The Company also recognized a $20.9 million gain on the sale of a business and a $2.7 million gain from the reclassification of foreign currency translation adjustments during the year ended December 31, 2021, which are included within other restructuring activities below. The components of other restructuring charges consisted of the following during the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Vacant facility carrying costs and lease exit charges $ 5.4 $ 19.8 Equipment and infrastructure removal costs 0.7 1.6 Gains on the sale of facilities — (24.8) Loss on the sale of Argentina print business 23.1 — Other restructuring activities 3.4 (23.1) Other restructuring charges $ 32.6 $ (26.5) The restructuring charges recorded were based on plans that have been committed to by management and were, in part, based upon management’s best estimates of future events. Changes to the estimates may require future restructuring charges and adjustments to the restructuring liabilities. The Company expects to incur additional restructuring charges related to these and other initiatives. Impairment Charges The Company recognized impairment charges of $2.2 million during the year ended December 31, 2022, primarily for machinery and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction and strategic divestiture activities. The Company recognized impairment charges of $34.9 million during the year ended December 31, 2021, which consisted of $2.8 million for machinery and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction and strategic divestiture activities, including $32.1 million of impairment charges related to the Company’s investment in Plural, which was sold in January 2022. The fair values of the impaired assets were determined by the Company to be Level 3 under the fair value hierarchy (see Note 13, “Financial Instruments and Fair Value Measurements,” for the definition of Level 3 inputs) and were estimated based on broker quotes, internal expertise related to current marketplace conditions and estimated future discounted cash flows. These assets were adjusted to their estimated fair values at the time of impairment. If estimated fair values subsequently decline, the carrying values of the assets are adjusted accordingly. Transaction-Related Charges The Company incurs transaction-related charges primarily consisting of professional service fees related to business acquisition and divestiture activities. Transaction-related charges of $2.0 million and $0.6 million were recorded during the years ended December 31, 2022 and 2021, respectively. Restructuring Reserves Activity impacting the Company’s restructuring reserves for the years ended December 31, 2022 and 2021, was as follows: Employee Impairment Transaction-Related Integration Other Total Balance at January 1, 2021 $ 14.6 $ — $ 0.5 $ — $ 25.8 $ 40.9 Expense (income), net 9.9 34.9 0.6 — (26.5) 18.9 Cash payments, net (19.0) — (0.7) — (13.3) (33.0) Non-cash adjustments/reclassifications (0.8) (34.9) — — 64.2 28.5 Balance at December 31, 2021 $ 4.7 $ — $ 0.4 $ — $ 50.2 $ 55.3 Expense, net 7.3 2.2 2.0 0.7 32.6 44.8 Cash payments, net (4.1) — (0.9) (0.7) (15.7) (21.4) Non-cash adjustments/reclassifications (5.0) (2.2) — — (61.9) (69.1) Balance at December 31, 2022 $ 2.9 $ — $ 1.5 $ — $ 5.2 $ 9.6 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is assigned to specific reporting units and is tested annually for impairment as of October 31, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. Due to the Company’s decision to sell its third-party logistics business on June 30, 2021, goodwill included in the carrying amount of the third-party logistics business sold of $16.6 million was determined based on the relative fair value of the third-party logistics business and the portion of the Core Print and Related Services reporting unit retained. When only a portion of goodwill is allocated to a business to be sold, an interim goodwill impairment test was completed on the remaining $86.4 million of goodwill in the Core Print and Related Services reporting unit. No impairment was recorded as a result of the 2021 interim impairment test. The Company completed its annual impairment test as of October 31, 2022, and identified no indicators of impairment in any of the Company's reporting units during the year ended December 31, 2022. Fair value was determined using an equal weighting of both the income and market approaches. Under the income approach, the Company determined fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk and the rate of return an outside investor would expect to earn. Under the market approach, the Company derived the fair value of the reporting units based on market multiples of comparable publicly-traded companies. This fair value determination was categorized as Level 3 in the fair value hierarchy (see Note 13, “Financial Instruments and Fair Value Measurements,” for the definition of Level 3 inputs). No goodwill impairment charges were recorded during the years ended December 31, 2022 or 2021. The accumulated goodwill impairment losses and the carrying value of goodwill at December 31, 2022 and 2021, were as follows: United States Print and Related Services International Total Goodwill $ 864.7 $ 30.0 $ 894.7 Accumulated goodwill impairment loss (778.3) (30.0) (808.3) Goodwill, net of accumulated goodwill impairment loss $ 86.4 $ — $ 86.4 There was no activity impacting goodwill for the year ended December 31, 2022. Activity impacting goodwill for the year ended December 31, 2021, was as follows: United States Print and Related International Total Balance at January 1, 2021 $ 103.0 $ — $ 103.0 Sale of third-party logistics business (16.6) — (16.6) Balance at December 31, 2021 $ 86.4 $ — $ 86.4 Other Intangible Assets The components of other intangible assets at December 31, 2022 and 2021, were as follows: December 31, 2022 December 31, 2021 Weighted Gross Accumulated Amortization Net Book Gross Accumulated Net Book Finite-lived intangible assets: Trademarks, patents, licenses and agreements 6 $ 67.2 $ (57.2) $ 10.0 $ 68.1 $ (50.7) $ 17.4 Capitalized software 5 21.5 (17.4) 4.1 19.2 (14.3) 4.9 Acquired technology 5 3.6 (1.9) 1.7 3.6 (1.2) 2.4 Customer relationships 6 559.9 (528.8) 31.1 560.1 (509.5) 50.6 Total finite-lived intangible assets $ 652.2 $ (605.3) $ 46.9 $ 651.0 $ (575.7) $ 75.3 Other intangible assets are evaluated for potential impairment whenever events or circumstances indicate that the carrying value may not be recoverable. There were no impairment charges recorded on finite-lived intangible assets for the years ended December 31, 2022 and 2021. Amortization expense for other intangible assets was $30.9 million and $31.5 million for the years ended December 31, 2022 and 2021, respectively. The following table outlines the estimated future amortization expense related to other intangible assets as of December 31, 2022: Amortization Expense 2023 $ 28.1 2024 15.6 2025 2.4 2026 0.6 2027 0.2 Total $ 46.9 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables | Receivables Prior to granting credit, the Company evaluates each client in an underwriting process, taking into consideration the prospective client’s financial condition, past payment experience, credit bureau information and other financial and qualitative factors that may affect the client’s ability to pay. Specific credit reviews and standard industry credit scoring models are used in performing this evaluation. Clients’ financial condition is continuously monitored as part of the normal course of business. Some of the Company’s clients are highly leveraged or otherwise subject to their own operating and regulatory risks. Specific client provisions are made when a review of significant outstanding amounts, utilizing information about client creditworthiness, as well as current and future economic trends based on reasonable forecasts, indicates that collection is doubtful. The Company also records a general provision based on the overall risk profile of the receivables and through the assessment of reasonable economic forecasts. The risk profile is assessed on a quarterly basis using various methods, including external resources and credit scoring models. Accounts that are deemed uncollectible are written off when all reasonable collection efforts have been exhausted. The Company has recorded credit loss expense of $3.4 million and $1.3 million during the years ended December 31, 2022 and 2021, respectively, which is included in selling, general and administrative expenses in the consolidated statements of operations. Activity impacting the allowance for credit losses for the years ended December 31, 2022 and 2021, was as follows: 2022 2021 Balance at January 1, $ 28.2 $ 33.8 Provisions 3.4 1.3 Write-offs (5.2) (6.9) Balance at December 31, $ 26.4 $ 28.2 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories at December 31, 2022 and 2021, were as follows: 2022 2021 Raw materials and manufacturing supplies $ 173.7 $ 148.6 Work in process 38.3 31.6 Finished goods 48.7 46.0 Total $ 260.7 $ 226.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment at December 31, 2022 and 2021, were as follows: 2022 2021 Land $ 68.2 $ 73.6 Buildings 651.9 658.4 Machinery and equipment 2,854.0 2,883.7 Other (1) 165.0 181.9 Construction in progress 30.5 25.1 Property, plant and equipment—gross 3,769.6 3,822.7 Less: accumulated depreciation (3,097.5) (3,095.7) Property, plant and equipment—net $ 672.1 $ 727.0 ______________________________ (1) Other consists of computer equipment and software, vehicles, furniture and fixtures, leasehold improvements and communication related equipment. The Company recorded impairment charges of $2.2 million and $2.8 million during the years ended December 31, 2022 and 2021, respectively, to reduce the carrying amounts of certain property, plant and equipment no longer utilized in production, or due to other capacity reduction and strategic divestiture activities, to fair value (see Note 3, “Restructuring, Impairment and Transaction-Related Charges,” for further discussion on impairment charges). The Company recognized depreciation expense of $110.4 million and $125.8 million for the years ended December 31, 2022 and 2021, respectively. Gains from Sale and Leaseback On June 29, 2021, the Company executed a sale and leaseback of its Chalfont, Pennsylvania facility for net proceeds of $20.0 million, which resulted in a $13.7 million gain. The leaseback is for a term of seven years and was determined to be an operating lease. As of December 31, 2022, the leaseback consisted of an $8.2 million asset included in the operating lease right of use assets - net, current operating lease obligation of $1.3 million and operating lease obligation of $7.1 million in the consolidated balance sheet. On September 28, 2021, the Company executed a sale and leaseback of its West Allis, Wisconsin facility for net proceeds of $31.9 million, which resulted in a $10.8 million gain. The leaseback is for a term of ten years and was determined to be an operating lease. As of December 31, 2022, the leaseback consisted of a $20.8 million asset included in the operating lease right of use assets - net, current operating lease obligation of $1.8 million and operating lease obligation of $19.3 million in the consolidated balance sheet. |
Other Current and Long-Term Lia
Other Current and Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Other Current and Long-Term Liabilities | Other Current and Long-Term Liabilities The components of other current and long-term liabilities at December 31, 2022 and 2021, were as follows: December 31, 2022 December 31, 2021 Other Current Liabilities Other Total Other Current Liabilities Other Total Employee-related liabilities (1) $ 117.6 $ 45.3 $ 162.9 $ 128.8 $ 52.8 $ 181.6 Single employer pension plan obligations 1.4 34.9 36.3 1.6 17.6 19.2 Multiemployer pension plans – withdrawal liability 4.1 24.2 28.3 3.8 28.4 32.2 Deferred revenue 53.1 1.2 54.3 66.4 2.1 68.5 Tax-related liabilities 18.9 4.4 23.3 20.0 5.3 25.3 Restructuring liabilities 4.2 4.3 8.5 47.5 6.1 53.6 Interest and rent liabilities 0.4 — 0.4 2.8 — 2.8 Interest rate swap liabilities — — — 0.7 4.4 5.1 Other 49.4 14.5 63.9 42.7 11.4 54.1 Total $ 249.1 $ 128.8 $ 377.9 $ 314.3 $ 128.1 $ 442.4 ______________________________ (1) Employee-related liabilities consist primarily of payroll, bonus, vacation, health and workers’ compensation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company had firm commitments of $32.9 million as of December 31, 2022, to purchase press, finishing and other equipment. Litigation The Company is named as a defendant in various lawsuits in which claims are asserted against the Company in the normal course of business. The liabilities, if any, which ultimately result from such lawsuits are not expected by management to have a material impact on the consolidated financial statements of the Company. Environmental Reserves The Company is subject to various laws, regulations and government policies relating to health and safety, to the generation, storage, transportation, and disposal of hazardous substances, and to environmental protection in general. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such reserves are adjusted as new information develops or as circumstances change. The environmental reserves are not discounted. The Company believes it is in compliance with such laws, regulations and government policies in all material respects. Furthermore, the Company does not anticipate that maintaining compliance with such environmental statutes will have a material impact upon the Company’s consolidated financial position. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The weighted average interest rate for the year ended December 31, 2022 and the components of long-term debt at December 31, 2022 and 2021, were as follows: Weighted Average Interest Rate 2022 2021 Master note and security agreement 7.92 % $ 4.4 $ 7.2 Term loan A 4.54 % 556.7 575.4 Revolving credit facility 4.99 % — — Senior unsecured notes 7.00 % — 211.5 International term loans 5.39 % 5.2 5.3 International revolving credit facilities 3.00 % 8.4 8.8 Other — % — 1.4 Debt issuance costs (6.9) (9.1) Total debt $ 567.8 $ 800.5 Less: short-term debt and current portion of long-term debt (61.1) (245.6) Long-term debt $ 506.7 $ 554.9 Description of Debt Obligations Master Note and Security Agreement On September 1, 1995, and as last amended on November 24, 2014, the Company entered into its Master Note and Security Agreement. As of December 31, 2022, the borrowings outstanding under the Master Note and Security Agreement were $4.4 million. The senior notes under the Master Note and Security Agreement had a weighted average interest rate of 7.92% at December 31, 2022, which is fixed to maturity, with interest payable semiannually. Principal payments commenced September 1997 and extend through 2026 in various tranches. The notes are collateralized by certain United States press equipment under the terms of the Master Note and Security Agreement. Senior Secured Credit Facility On April 28, 2014, the Company entered into its Senior Secured Credit Facility, which included a revolving credit facility, Term Loan A and Term Loan B (Term Loan B was retired in July 2019). The Company completed the fifth amendment to the Senior Secured Credit Facility on November 2, 2021. The Senior Secured Credit Facility was amended to (a) reduce the aggregate amount of the existing revolving credit facility from $500.0 million to $432.5 million, and extend the maturity of a portion of the revolving credit facility such that $90.0 million under the revolving credit facility is due on the existing maturity date of January 31, 2024 (the “Existing Maturity Date”) and $342.5 million under the revolving credit facility is due on November 2, 2026 (the “Extended Maturity Date”); (b) extend the maturity of a portion of the existing term loan facility such that $91.5 million of such term loan facility is due on the Existing Maturity Date and $483.9 million is due on the Extended Maturity Date; (c) make certain adjustments to pricing, including an increase of 0.50% to the interest rate margin applicable to the loans maturing on the Extended Maturity Date; (d) modify certain financial and operational covenants; and (e) modify the interest rate provisions relating to the phase-out of LIBOR as a reference rate. Borrowings under the revolving credit facility and Term Loan A made under the Senior Secured Credit Facility bear interest at 2.75% in excess of reserve adjusted LIBOR, or 1.75% in excess of an alternate base rate with a LIBOR floor of 0.75% for the extended tranche and bear interest at 2.50% in excess of reserve adjusted LIBOR, or 1.50% in excess of an alternate base rate with a LIBOR floor of 0.75% for the non-extending tranche. At December 31, 2022, the Company had no outstanding borrowings on the revolving credit facility, and had $32.7 million of issued letters of credit, leaving up to $399.8 million available for future borrowings. The Senior Secured Credit Facility is secured by substantially all of the unencumbered assets of the Company. The Senior Secured Credit Facility also requires the Company to provide additional collateral to the lend ers in certain limited circumstances. The Company completed the sixth amendment to the Senior Secured Credit Facility on March 25, 2022, which expanded the number of currencies available for letters of credit. The Company completed the seventh amendment to the Senior Secured Credit Facility on January 24, 2023, which transitioned the Company’s reference rate from LIBOR to SOFR effective February 1, 2023. The transition from LIBOR to SOFR does not have a material impact on the consolidated financial statements. Senior Unsecured Notes The Company issued $300.0 million aggregate principal amount of its Senior Unsecured Notes due May 1, 2022, on April 28, 2014. During the first quarter of 2022, the Company repurchased $2.4 million of its outstanding Senior Unsecured Notes in the open market. During the year ended December 31, 2021, the Company repurchased $27.2 million of its outstanding Senior Unsecured Notes in the open market, resulting in a net loss on debt extinguishment of $0.5 million. All repurchased Senior Unsecured Notes were canceled. The Company used cash flows from operating activities and borrowings under its revolving credit facility to fund the repurchases. These repurchases were completed primarily to reduce interest expense. On May 2, 2022, the Company used liquidity available under its revolving credit facility and available cash on hand to fund the repayment on maturity of all $209.1 million aggregate principal amount, outstanding at the time, of its Senior Unsecured Notes. International Debt Obligations The Company has two fixed rate, Euro denominated, international term loans for purposes of financing certain capital expenditures and general business needs. The first international term loan in the amount of $21.7 million was entered into on December 28, 2015, was fully funded during 2016 with a term of six years, and matured on December 28, 2021. The second international term loan in the amount of $12.8 million was entered into on December 21, 2018, bears interest at 1.96% and has a term of five years, maturing on December 31, 2023. As of December 31, 2022, $2.5 million remained outstanding on the second international term loan. In addition, there are $2.7 million of term loans in Colombia and Peru. The Company has two multicurrency international revolving credit facilities that are used for financing working capital and general business needs. The Company had $8.4 million of borrowings outstanding at a weighted average interest rate of 3.00% on the international revolving credit facilities as of December 31, 2022, leaving $7.7 million available for future borrowing. The terms of the international revolving credit facilities includes certain financial covenants, a guarantee of the international revolving credit facilities by the Company and a security agreement that includes collateralizing substantially all of the Quad Europe Sp. z.o.o. assets. The first multicurrency international revolving credit facility expires on October 29, 2023, and bears interest at the aggregate of the Warsaw Interbank Offered Rate (“WIBOR”) plus 1.40% for any Polish Zloty denominated borrowings, the aggregate of Euro Interbank Offered Rate (“EURIBOR”) plus 1.45% for any Euro denominated borrowings or the aggregate of British pound sterling LIBOR plus 1.45% for any British pound sterling denominate borrowings. The second multicurrency international revolving credit facility expires on December 15, 2023, and bears interest at the aggregate of WIBOR plus 1.00% for any Polish Zloty denominated borrowings or the aggregate of EURIBOR plus 1.00% for any Euro denominated borrowings. Fair Value of Debt Based upon the interest rates available to the Company for borrowings with similar terms and maturities, the fair value of the Company’s total debt was approximately $0.6 billion and $0.8 billion at December 31, 2022 and 2021, respectively. The fair value determination of the Company’s total debt was categorized as Level 2 in the fair value hierarchy (see Note 13, “Financial Instruments and Fair Value Measurements,” for the definition of Level 2 inputs). As of December 31, 2022, approximately $1.3 billion of the Company’ s assets were pledged as security under various loans and other agreements. Debt Issuance Costs The debt issuance costs are amortized on a straight-line basis over the lives of the related debt instruments. Activity impacting the Company’s capitalized debt issuance costs for the years ended December 31, 2022 and 2021, was as follows: Capitalized Debt Balance at January 1, 2021 $ 6.9 Debt issuance costs from November 2, 2021 debt financing arrangement 5.2 Write off of debt issuance costs from Term Loan A pre-payments (0.4) Amortization expense (2.6) Balance at December 31, 2021 9.1 Amortization expense (2.2) Balance at December 31, 2022 $ 6.9 Loss on Debt Extinguishment 2021 Loss on Debt Extinguishment The loss on debt extinguishment recorded during the year ended December 31, 2021, was comprised of the following: 2021 Loss on Debt Extinguishment Debt issuance costs from November 2, 2021 debt financing arrangement 0.2 Loss on debt extinguishment from Senior Unsecured Note Repurchases 0.5 Total $ 0.7 Covenants and Compliance The Company’s various lending arrangements include certain financial covenants (all financial terms, numbers and ratios are as defined in the Company’s debt agreements). Among these covenants, the Company was required to maintain the following as of December 31, 2022: • Total Leverage Ratio. On a rolling twelve-month basis, the Total Leverage Ratio, defined as consolidated total indebtedness to consolidated EBITDA, shall not exce ed 3.75 to 1.00 (for the twelve months ended December 31, 2022, the Company’s Total Leverage Ratio was 2.22 to 1.00). • Liquidity, defined as unrestricted cash and permitted investments of the Company and its subsidiaries (subject to certain conditions) plus the aggregate amount of the unused revolving credit facility commitments, shall not be less than $181.6 million at any time during the period commencing December 15, 2023 and ending when all obligations owed under the Senio r Secured Credit Facility to lenders that are not extending lenders are paid in full. • If there is any amount outstanding on the Revolving Credit Facility or Term Loan A, or if any lender has any revolving credit exposure or Term Loan A credit exposure, the Company is required to maintain the following: ◦ Se nior Secured Leverage Ratio. On a rolling four-quarter basis, the Senior Secured Leverage Ratio, defined as the ratio of consolidated senior secured net indebtedness to consolidated EBITDA, shall not exceed (a) 3.50 to 1.00 for any fiscal quarter ending prior to December 31, 2023, and (b) 3.25 to 1.00 for any fiscal quarter ending on or after December 31, 2023 (other than, in the case of this clause (b), any fiscal quarter ending September 30 of any year, each of which shall be subject to a maximum Senior Secured Leverage Ratio not to exceed 3.50 to 1.00) (for the twelve months ended December 31, 2022, the Company’s Senior Secured Leverage Ratio was 2.13 to 1.00). • Interest Coverage Ratio. On a rolling twelve-month basis, the Interest Coverage Ratio, defined as consolidated EBITDA to cash consolidated interest expense, shall not be less than 3.00 to 1.00 (for the twelve months ended December 31, 2022, the Company’s Interest Coverage Ratio was 6.39 to 1.00). In addition to those covenants, the Senior Secured Credit Facility also includes certain limitations on acquisitions, indebtedness, liens, dividends and repurchases of capital stock. • If the Company’s Total Leverage Ratio is greater than 2.75 to 1.00, the Company is prohibited from making greater than $60.0 million of dividend payments, capital stock repurchases and certain other payments, over the course of the agreement. If the Company’s Total Leverage Ratio is above 2.50 to 1.00 but below 2.75 to 1.00, the Company is prohibited from making greater than $100.0 million of dividend payments, capital stock repurchases and certain other payments, over the course of the agreement. If the T otal Leverage Ratio is less than 2.50 to 1.00, there are no such restrictions. As the Company’s Total Leverage Ratio as of December 31, 2022, was 2.22 to 1.00, the limitations described above are not applicable at this time. • If the Company’s Senior Secured Leverage Ratio is greater than 3.00 to 1.00 or the Company’s Total Net Leverage Ratio which, on a rolling twelve-month basis, is defined as consolidated net indebtedness to consolidated EBITDA, is greater than 3.50 to 1.00, the Company is prohibited from voluntarily prepaying any unsecured or subordinated indebtedness, with certain exceptions (including any mandatory prepayments on the Senior Unsecured Notes or any other unsecured or subordinated debt). If the Senior Secured Leverage Ratio is less than 3.00 to 1.00 and the Total Net Leverage Ratio is less than 3.50 to 1.00, there are no such restrictions. The limitations described above are currently not applicable, as the Company’s Senior Secured Leverage Ratio was 2.13 to 1.00 and Total Net Leverage Ratio was 2.14 to 1.00, as of December 31, 2022 . Estimated Principal Payments The approximate annual principal amounts due on long-term debt, ex cluding $6.9 million for future amortization of debt issuance costs, at December 31, 2022, were as follows: Principal Payments 2023 $ 55.5 2024 149.2 2025 72.8 2026 297.2 Total $ 574.7 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating and finance leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date, and is subsequently measured at amortized cost using the effective interest method. Key estimates and judgments include how the Company determines the discount rate, lease term and lease payments. • ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the implicit interest rate as it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms based on the published United States Treasury rates as well as the Company’s credit rating at implementation or at the lease inception date. • The lease term for all of the Company’s leases includes the non-cancelable period of the lease, plus or minus any additional periods covered by an option to extend or terminate the lease that the Company is reasonably certain to exercise. • Lease payments included in the lease liability are comprised of fixed payments as well as any exercise price of a Company option to purchase the underlying asset if the Company is reasonably certain to exercise. The Company’s leases do not contain variable lease payments. ROU assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently amortized by the straight-line lease expense adjusted by the lease liability accretion over the lease term. For finance leases, the ROU asset is subsequently amortized on a straight-line basis from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. Amortization of the ROU asset is recognized and presented separately from interest expense on the lease liability. The Company’s ROU assets for both operating and finance leases are reviewed for impairment losses on a quarterly basis in line with ASC 360-10 — Property, Plant, and Equipment — Overall. The Company has not recognized any impairment losses to date. The Company also monitors its leases for events or changes in circumstances that require a reassessment of the lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the ROU asset. Operating leases are included in operating lease right-of-use assets—net, current portion of operating lease obligations, and operating lease obligations in the consolidated balance sheets. Finance leases are included in property and equipment—net, current portion of finance lease obligations, and finance lease obligations in the consolidated balance sheets. The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have an original lease term of twelve months or less. Therefore, the Company recognizes the lease payments associated with these short-term leases as an expense over the lease term in the consolidated statement of operations. Practical Expedients The Company has elected to apply the following practical expedients allowed under Accounting Standards Update 842: • The Company elected the practical expedient package and therefore did not reassess for any existing leases: ◦ whether contracts are or contain leases; ◦ the lease classification for any existing leases; and ◦ any initial direct costs. • The Company elected the practical expedient related to land easements, allowing to carry forward the accounting treatment for land easements on existing agreements. • The Company used “hindsight” judgments that impact the lease term. • The Company elected to combine lease and non-lease components into one lease component for select underlying lease asset categories. Real estate leases are accounted for separately while all other leases, primarily equipment leases, with separate lease and non-lease components are accounted for as a single lease component. Leases Financial Information The Company enters into various lease agreements for real estate, such as office space and manufacturing facilities, as well as equipment leases, including press, finishing and transportation equipment. Many of these leases provide the Company with options to renew, terminate, or in the case of equipment leases, purchase the related equipment at the termination value, as defined, and at various early buyout dates during the term of the lease. In general, the Company has determined these options were not reasonably certain to be exercised, and therefore are not included in the determination of the lease term. The following summarizes certain lease information for the years ended December 31, 2022 and 2021: Year Ended Year Ended December 31, 2022 December 31, 2021 Lease cost Finance lease cost: Amortization of right-of-use assets $ 1.8 $ 2.9 Interest on lease liabilities 0.1 0.2 Operating lease cost 29.7 28.4 Short-term lease cost 0.2 — Sublease income (1.9) (2.0) Total lease cost $ 29.9 $ 29.5 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ — $ — Operating cash flows from operating leases 28.1 27.9 Financing cash flows from finance leases 2.1 3.0 Right-of-use assets obtained in exchange for new finance lease liabilities 1.1 1.4 Right-of-use assets obtained in exchange for new operating lease liabilities 17.6 74.6 Weighted-average remaining lease term — finance leases 4.2 years 2.3 years Weighted-average remaining lease term — operating leases 5.2 years 5.7 years Weighted-average discount rate — finance leases 5.2 % 4.5 % Weighted-average discount rate — operating leases 5.4 % 5.4 % The components of finance lease assets at December 31, 2022 and 2021, were as follows: 2022 2021 Leased equipment—gross $ 24.3 $ 23.8 Less: accumulated depreciation (21.9) (20.7) Leased equipment—net $ 2.4 $ 3.1 Future maturities of lease liabilities at December 31, 2022, were as follows: Future Maturities of Operating Leases Future Maturities of Finance Leases 2023 $ 33.1 $ 0.9 2024 25.7 0.6 2025 21.4 0.5 2026 17.1 0.2 2027 13.9 0.2 2028 and thereafter 20.1 0.3 Total minimum payments 131.3 2.7 Less: present value discount (16.4) (0.3) Present value of minimum payments 114.9 2.4 Less: current portion (27.8) (0.8) Long-term lease liability $ 87.1 $ 1.6 |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating and finance leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date, and is subsequently measured at amortized cost using the effective interest method. Key estimates and judgments include how the Company determines the discount rate, lease term and lease payments. • ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the implicit interest rate as it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms based on the published United States Treasury rates as well as the Company’s credit rating at implementation or at the lease inception date. • The lease term for all of the Company’s leases includes the non-cancelable period of the lease, plus or minus any additional periods covered by an option to extend or terminate the lease that the Company is reasonably certain to exercise. • Lease payments included in the lease liability are comprised of fixed payments as well as any exercise price of a Company option to purchase the underlying asset if the Company is reasonably certain to exercise. The Company’s leases do not contain variable lease payments. ROU assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently amortized by the straight-line lease expense adjusted by the lease liability accretion over the lease term. For finance leases, the ROU asset is subsequently amortized on a straight-line basis from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. Amortization of the ROU asset is recognized and presented separately from interest expense on the lease liability. The Company’s ROU assets for both operating and finance leases are reviewed for impairment losses on a quarterly basis in line with ASC 360-10 — Property, Plant, and Equipment — Overall. The Company has not recognized any impairment losses to date. The Company also monitors its leases for events or changes in circumstances that require a reassessment of the lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the ROU asset. Operating leases are included in operating lease right-of-use assets—net, current portion of operating lease obligations, and operating lease obligations in the consolidated balance sheets. Finance leases are included in property and equipment—net, current portion of finance lease obligations, and finance lease obligations in the consolidated balance sheets. The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have an original lease term of twelve months or less. Therefore, the Company recognizes the lease payments associated with these short-term leases as an expense over the lease term in the consolidated statement of operations. Practical Expedients The Company has elected to apply the following practical expedients allowed under Accounting Standards Update 842: • The Company elected the practical expedient package and therefore did not reassess for any existing leases: ◦ whether contracts are or contain leases; ◦ the lease classification for any existing leases; and ◦ any initial direct costs. • The Company elected the practical expedient related to land easements, allowing to carry forward the accounting treatment for land easements on existing agreements. • The Company used “hindsight” judgments that impact the lease term. • The Company elected to combine lease and non-lease components into one lease component for select underlying lease asset categories. Real estate leases are accounted for separately while all other leases, primarily equipment leases, with separate lease and non-lease components are accounted for as a single lease component. Leases Financial Information The Company enters into various lease agreements for real estate, such as office space and manufacturing facilities, as well as equipment leases, including press, finishing and transportation equipment. Many of these leases provide the Company with options to renew, terminate, or in the case of equipment leases, purchase the related equipment at the termination value, as defined, and at various early buyout dates during the term of the lease. In general, the Company has determined these options were not reasonably certain to be exercised, and therefore are not included in the determination of the lease term. The following summarizes certain lease information for the years ended December 31, 2022 and 2021: Year Ended Year Ended December 31, 2022 December 31, 2021 Lease cost Finance lease cost: Amortization of right-of-use assets $ 1.8 $ 2.9 Interest on lease liabilities 0.1 0.2 Operating lease cost 29.7 28.4 Short-term lease cost 0.2 — Sublease income (1.9) (2.0) Total lease cost $ 29.9 $ 29.5 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ — $ — Operating cash flows from operating leases 28.1 27.9 Financing cash flows from finance leases 2.1 3.0 Right-of-use assets obtained in exchange for new finance lease liabilities 1.1 1.4 Right-of-use assets obtained in exchange for new operating lease liabilities 17.6 74.6 Weighted-average remaining lease term — finance leases 4.2 years 2.3 years Weighted-average remaining lease term — operating leases 5.2 years 5.7 years Weighted-average discount rate — finance leases 5.2 % 4.5 % Weighted-average discount rate — operating leases 5.4 % 5.4 % The components of finance lease assets at December 31, 2022 and 2021, were as follows: 2022 2021 Leased equipment—gross $ 24.3 $ 23.8 Less: accumulated depreciation (21.9) (20.7) Leased equipment—net $ 2.4 $ 3.1 Future maturities of lease liabilities at December 31, 2022, were as follows: Future Maturities of Operating Leases Future Maturities of Finance Leases 2023 $ 33.1 $ 0.9 2024 25.7 0.6 2025 21.4 0.5 2026 17.1 0.2 2027 13.9 0.2 2028 and thereafter 20.1 0.3 Total minimum payments 131.3 2.7 Less: present value discount (16.4) (0.3) Present value of minimum payments 114.9 2.4 Less: current portion (27.8) (0.8) Long-term lease liability $ 87.1 $ 1.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes have been based on the following components of earnings before income taxes and equity in earnings of unconsolidated entity for the years ended December 31, 2022 and 2021: 2022 2021 United States $ (13.9) $ 52.4 Foreign 31.6 (5.4) Total $ 17.7 $ 47.0 The components of income tax expense for the years ended December 31, 2022, and 2021, were as follows: 2022 2021 Federal: Current $ 0.4 $ 0.9 Deferred 3.3 3.2 State: Current 1.4 — Deferred (0.3) — Foreign: Current 4.2 3.3 Deferred (0.6) 2.1 Total income tax expense $ 8.4 $ 9.5 The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s income tax expense for the years ended December 31, 2022 and 2021: 2022 2021 Federal statutory rate $ 3.7 $ 9.9 Loss on the sale of Argentina print business (5.1) — Adjustment to valuation allowances 3.1 (17.1) Executive compensation limitation 2.9 — Impact from foreign branches 1.9 4.5 Adjustment of deferred tax liabilities 1.5 3.5 Credits (1.5) — State taxes, net of federal benefit 1.1 (0.1) Adjustment of uncertain tax positions (0.3) 0.2 Impairment on investment in Plural — 6.2 Foreign rate differential — (1.9) Other 1.1 4.3 Income tax expense $ 8.4 $ 9.5 The $3.1 million adjustment to valuation allowance in 2022 primarily relates to increasing reserves related to deferred tax assets for credits and interest limitation that are not expected to be realized in the future for federal income tax purposes. The $17.1 million adjustment to valuation allowance in 2021 primarily relates to releasing reserves related to deferred tax assets for net operating losses and interest limitation. The $1.1 million effective rate reconciling item for State taxes, net of federal benefit, in 2022 includes a $2.8 million adjustment for partial release of valuation allowance reserves. The $0.1 million effective rate reconciling item for State taxes, net of federal benefit, in 2021 includes a $4.8 million adjustment for partial release of valuation allowance reserves. Deferred Income Taxes The significant deferred tax assets and liabilities as of December 31, 2022 and 2021, were as follows: 2022 2021 Deferred tax assets: Net operating loss and other tax carryforwards $ 108.8 $ 125.2 Goodwill and intangible assets 24.0 24.4 Pension and workers compensation benefits 23.9 21.9 Interest limitation 12.8 11.5 Accrued liabilities 9.4 12.9 Research or experimental expenditures 8.0 — Accrued compensation 7.6 8.1 Allowance for doubtful accounts 5.9 6.5 Other 8.6 10.8 Total deferred tax assets 209.0 221.3 Valuation allowance (113.9) (116.3) Net deferred tax assets $ 95.1 $ 105.0 Deferred tax liabilities: Property, plant and equipment $ (86.0) $ (99.2) Other (6.9) (5.9) Total deferred tax liabilities (92.9) (105.1) Net deferred tax assets (liabilities) $ 2.2 $ (0.1) The Company has recorded deferred income tax liabilities of $9.3 million and $11.9 million as of December 31, 2022 and 2021, respectively, which were included in deferred income taxes in the consolidated balance sheets. The Company has also recorded deferred income tax assets of $11.5 million and $11.8 million as of December 31, 2022 and 2021, respectively, which were included in other long-term assets in the consolidated balance sheets. At December 31, 2022, the Company had the following gross amounts of tax-related carryforwards: • Net operating loss carryforwards of $3.8 million, $32.6 million and $567.9 million for federal, foreign and state, respectively. The federal net operating loss carryforward was generated in 2020 and is available without expiration. Of the foreign net operating loss carryforwards, $8.6 million is available without expiration, while the remainder expires through 2042. Of the state net operating loss carryforwards, $79.7 million is available without expiration, while the remainders expire through 2042. • Various credit carryforwards of $9.7 million, $24.3 million and $36.2 million for federal, foreign and state, respectively. The federal carryforward expires through 2041, the foreign credit carryforward expires in 2026, and the state credit carryforwards include $25.5 million that is available without expiration, while the remainder expires through 2036. As of December 31, 2022, the Company has recorded a valuation allowance of $113.9 million on its consolidated balance sheet primarily related to the tax-affected amounts of the above carryforwards. The valuation allowance includes $13.2 million, $31.3 million and $69.4 million of federal, foreign and state deferred tax assets, respectively, that are not expected to be realized. Uncertain Tax Positions The following table summarizes the activity of the Company’s liability for unrecognized tax benefits at December 31, 2022 and 2021: 2022 2021 Balance at January 1, $ 11.7 $ 11.6 Additions for tax positions of prior years 0.2 0.5 Reductions for tax positions of prior years (0.3) (0.3) Lapses of applicable statutes of limitations (0.5) (0.1) Balance at December 31, $ 11.1 $ 11.7 As of December 31, 2022, $8.0 million of unrecognized tax benefits would impact the Company’s effective tax rate, if recognized. Of that amount, it is reasonably possible that $4.4 million of the total amount of unrecognized tax benefits will decrease within the next twelve months due to resolution of income tax audits or statute expirations. The Company classified interest income and any related refunds related to income tax uncertainties as a component of income tax expense. The following table summarizes the Company’s interest income related to tax uncertainties and refunds recognized during the years ended December 31, 2022 and 2021: 2022 2021 Interest income $ (0.1) $ (0.5) Refunds — (0.1) Accrued interest and penalties related to income tax uncertainties are reported as components of other current liabilities and other long-term liabilities in the consolidated balance sheets. The following table summarizes the Company’s liabilities for accrued interest and penalties related to income tax uncertainties at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Accrued interest Accrued penalties Accrued interest Accrued penalties Other current liabilities $ — $ — $ — $ — Other long-term liabilities 0.1 — 0.2 — Total liabilities $ 0.1 $ — $ 0.2 $ — The Company has tax years from 2013 through 2022 that remain open and subject to examination by the Internal Revenue Service. Tax years from 2013 through 2022 remain open and subject to examination in the Company’s various major state jurisdictions within the United States. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of acquisitions or impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. There we re no Level 3 recurring measurements of assets or liabilities as of December 31, 2022. Interest Rate Swaps The Company currently holds one active interest rate swap contract. Another previously held interest rate swap, effective on February 28, 2017, terminated on February 28, 2022. The purpose of entering into the contracts was to reduce the variability of cash flows from interest payments related to a portion of Quad’s variable-rate debt. The interest rate swaps were previously designated as cash flow hedges as they effectively converted the notional value of the Company’s variable rate debt based on one-month LIBOR to a fixed rate, including a spread on underlying debt, and a monthly reset in the variable interest rate. However, the Company amended its Senior Secured Credit Facility during the second quarter of 2020, which added a 0.75% LIBOR floor to the Company’s variable rate debt, changing the critical terms of the hedged instrument. Due to this change in critical terms, the Company has elected to de-designate the swaps as cash flow hedges, resulting in future changes in fair value being recognized in interest expense. The balance of the accumulated other comprehensive loss attributable to the interest rate swaps as of June 30, 2020 was then amortized to interest expense on a straight-line basis over the remaining lives of the swap contracts. The Company expects to reclassify $2.7 million of this balance to interest expense over the next twelve months. March 19, 2019 Effective date March 29, 2019 Termination date March 28, 2024 Term 5 years Notional amount $130.0 Fixed swap rate 2.43% The Company classifies interest rate swaps as Level 2 because the inputs into the valuation model are observable or can be derived or corroborated utilizing observable market data at commonly quoted intervals. The fair value of the interest rate swaps classified as Level 2 as of December 31, 2022 and 2021, were as follows: Balance Sheet Location December 31, 2022 December 31, 2021 Interest rate swap assets Prepaid expenses and other current assets $ 3.8 $ — Interest rate swap liabilities Other current liabilities — (0.7) Interest rate swap liabilities Other long-term liabilities — (4.4) Prior to the Company’s de-designation of the interest rate swaps as a cash flow hedge, the interest rate swaps were considered highly effective, with no a mount of ineffectiveness recorded into earnings. The change in the fair value of the interest rate swaps are recorded as an adjustment to interest expense in the consolidated statements of operations. The cash flows associated with the interest rate swaps have been recognized as an adjustment to interest expense in the consolidated statements of operations: Year Ended December 31, 2022 2021 Cash Flow Impacts Net interest paid $ 1.7 $ 7.6 Impacts with Swaps as Nonhedging Instruments Income recognized in interest expense excluded from hedge effectiveness assessments $ (9.0) $ (9.3) Amounts reclassified out of accumulated other comprehensive loss to interest expense 3.4 7.1 Net interest expense 1.7 7.6 Total impact of swaps to interest expense $ (3.9) $ 5.4 Interest Rate Collars The Company has entered into two interest rate collar contracts, both effective February 1, 2023. The purpose of entering into the contracts is to reduce the variability of cash flows from interest payments related to a portion of Quad’s variable-rate debt. The interest rate collars will be designated as cash flow hedges as they effectively convert the notional value of the Company’s variable rate debt based on one-month term SOFR to a fixed rate if that month’s interest rate is outside of the collars’ floor and ceiling rates, including a spread on underlying debt, and a monthly reset in the variable interest rate. The key terms of the interest rate collars are as follows: December 12, 2022 December 14, 2022 Effective date February 1, 2023 February 1, 2023 Termination date October 30, 2026 October 31, 2025 Term 45 Months 33 Months Notional amount $75.0 $75.0 Floor Rate 2.09% 2.25% Ceiling Rate 5.00% 5.00% Foreign Exchange Contracts The Company has operations in countries that have transactions outside their functional currencies and periodically enters into foreign exchange contracts. These contracts are used to hedge the net exposures of changes in foreign currency exchange rates and are designated as either cash flow hedges or fair value hedges. Gains or losses on net foreign currency hedges are intended to offset losses or gains on the underlying net exposures in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. As of December 31, 2022, there were six open foreign currency exchange contracts designated as cash flow hedges, with a total notional value of $7.7 million . Natural Gas Forward Contracts The Company periodically enters into natural gas forward purchase contracts to hedge against increases in commodity costs. The Company’s commodity contracts qualified for the exception related to normal purchases and sales during the years ended December 31, 2022 and 2021, as the Company takes delivery in the normal course of business. Debt The Company measures fair value on its debt instruments using interest rates available to the Company for borrowings with similar terms and maturities and is categorized as Level 2. See Note 10, “Debt,” for the fair value of the Company’s debt as of December 31, 2022 and 2021. Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges, which are categorized as Level 3. See Note 3, “Restructuring, Impairment and Transaction-Related Charges”; Note 4, “Goodwill and Other Intangible Assets”; and Note 7, “Property, Plant and Equipment” for further discussion on impairment charges recorded as a result of the remeasurement of certain long-lived assets. Other Estimated Fair Value Measurements The Company records the fair value of its forward contracts and pension plan assets on a recurring basis. The fair value of cash and cash equivalents, receivables, inventories, accounts payable and other current liabilities approximate their carrying values as of December 31, 2022 and 2021. See Note 14, “Employee Retirement Plans,” for the details of Level 1 and Level 2 inputs related to employee retirement plans. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans | Employee Retirement Plans Defined Contribution Plans The Quad/Graphics, Inc. Diversified Plan is comprised of participant-directed 401(k) contributions, Company match and profit sharing contributions, with total participant assets of $1.9 billion as of December 31, 2022. Company 401(k) matching contributions were $16.8 million and $13.2 million for the years ended December 31, 2022 and 2021, respectively. The Company’s ESOP holds profit sharing contributions of Company stock, which are made at the discretion of the Company’s Board of Directors. There were no profit sharing contributions for the years ended December 31, 2022 and 2021. Defined Benefit Plans The Company assumed various funded and unfunded frozen pension plans for a portion of its full-time employees in the United States as part of the acquisition of World Color Press in 2010. Benefits are generally based upon years of service and compensation. These plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all qualified plans using actuarial cost methods and assumptions acceptable under government regulations. The components of net pension income for the years ended December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Interest cost $ (9.7) $ (8.8) Expected return on plan assets 22.3 24.2 Net periodic pension income 12.6 15.4 Settlement charge — (0.9) Net pension income $ 12.6 $ 14.5 The Company made $1.0 million in benefit payments to its non-qualified defined benefit pension plans and made no contributions to its qualified defined benefit pension plans during the year ended December 31, 2022. The Company incurred non-cash settlement charges of $0.9 million during the year ended December 31, 2021 due to the significance of lump sum payments made in 2021. The non-cash settlement charges result in accelerated recognition of actuarial losses on the consolidated statement of operations. The underfunded pension obligations are calculated using generally accepted actuarial methods and are measured annually as of December 31. The following table provides a reconciliation of the projected benefit obligation, fair value of plan assets and the funded status of the pension plans as of December 31, 2022 and 2021: Pension Benefits 2022 2021 Changes in benefit obligation Projected benefit obligation, beginning of year $ (462.7) $ (525.6) Interest cost (9.7) (8.8) Actuarial gain 86.1 23.1 Benefits paid 37.0 47.5 Liability benefit from settlement — 1.1 Projected benefit obligation, end of year (349.3) (462.7) Changes in plan assets Fair value of plan assets, beginning of year 443.5 469.0 Actual return on plan assets (94.5) 20.4 Employer contributions 1.0 1.6 Benefits paid (37.0) (47.5) Fair value of plan assets, end of year 313.0 443.5 Funded status $ (36.3) $ (19.2) The net underfunded defined benefit plan obligations increased by $17.1 million during the year ended December 31, 2022. This increase was primarily due to an overall decrease in pension plan assets due to a negative actual return on pension plan assets of (21.76)% during the year ended December 31, 2022, which was below the expected return on plan assets assumption of 5.25%. This decrease in plan assets was partially offset by a decrease in overall pension obligations due to a 269 basis point increase in the pension discount rate from 2.77% at December 31, 2021, to 5.46% at December 31, 2022 and $1.0 million of benefit payments. Amounts recognized on the consolidated balance sheets as of December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Current liabilities $ (1.4) $ (1.6) Noncurrent liabilities (34.9) (17.6) Total amount recognized $ (36.3) $ (19.2) The following table provides a reconciliation of the Company’s accumulated other comprehensive loss prior to any deferred tax effects at December 31, 2022 and 2021: Actuarial Gain / (Loss), net Balance at January 1, 2021 $ (38.1) Amount arising during the period 20.3 Impact of pension plan settlement charge included in net loss 0.9 Balance at December 31, 2021 (16.9) Amount arising during the period (30.7) Balance at December 31, 2022 $ (47.6) Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of plan assets are recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Discount rate 2.77 % 2.37 % Expected long-term return on plan assets 5.25 % 5.50 % The weighted average assumptions used to determine pension benefit obligations at December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Discount rate (end of year rate) 5.46 % 2.77 % The Company determines its assumed discount rate based on an index of high-quality corporate bond yields and matched-funding yield curve analysis as of the measurement date. Estimated Company Contributions and Benefit Payments In 2023, the Company does not expect to make any cash contributions to its qualified defined benefit pension plans and expects to make estimated benefit payments of $1.5 million to its non-qualified defined benefit pension plans. The actual pension contributions may differ based on the funding calculations, and the Company may choose to make additional discretionary contributions. The estimated benefit payments may differ based on actual experience. Estimated Future Benefit Payments by the Plans to or on Behalf of Plan Participants An estimate of the Plans’ present value of future benefit payments to be made from funded qualified plans and unfunded non-qualified plans to plan participants at December 31, 2022, were as follows: Future Pension 2023 $ 35.4 2024 33.7 2025 33.0 2026 31.7 2027 30.8 2028 - 2032 134.7 Thereafter 50.0 Total $ 349.3 Plan Assets and Investment Strategy The Company follows a disciplined investment strategy, which provides diversification of investments by asset class, foreign currency, sector and company. The Pension Committee has an approved investment policy for the pension plan that establishes long-term asset mix targets based on several factors including the following: the funded status, historical returns achieved by worldwide investment markets, the time horizon of the pension plan’s obligations, and the investment risk. An allocation range by asset class is developed whereby a mix of equity securities and debt securities are used to provide an appropriate risk-adjusted long-term return on plan assets. Third-party investment managers are employed to invest assets in both passively-indexed and actively-managed strategies and investment returns and risks are monitored on an ongoing basis. Derivatives are used at certain times to hedge foreign currency exposure. Gains or losses on the derivatives are offset by a corresponding change in the value of the hedged assets. Derivatives are strictly used for hedging purposes and not speculative purposes. The current target allocations for plan assets on a weighted average basis are 25% equity securities and 75% debt securities, including cash and cash equivalents. The actual asset allocation as of December 31, 2022, was approximately 23% equity securities and 77% debt securities, and as of December 31, 2021, was approximately 26% equity securities and 74% debt securities. Equity investments are diversified by country, issuer and industry sector. Debt securities primarily consist of government bonds and corporate bonds from diversified industries. The expected long-term rate of return on assets assumption is selected by first identifying the expected range of long-term rates of return for each major asset class. Expected long-term rates of return are developed based on long-term historical averages, current expectations of future returns, anticipated inflation rates and active investment management of the portfolio. The expected long-term rate of return on plan assets is then calculated by weighting each asset class. The fair values of the Company’s pension plan assets at December 31, 2022 and 2021, by asset category were as follows: December 31, 2022 December 31, 2021 Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 0.6 $ 0.6 $ — $ — $ 3.2 $ 3.2 $ — $ — Debt securities 76.2 — 76.2 — 120.6 — 120.6 — Equity securities 13.4 — 13.4 — 22.2 — 22.2 — Total pension plan assets, excluding those measured at net asset value (“NAV”) 90.2 $ 0.6 $ 89.6 $ — 146.0 $ 3.2 $ 142.8 $ — Investments measured at NAV (1) 222.8 297.5 Total pension plan assets $ 313.0 $ 443.5 ______________________________ (1) These investments consist of privately placed funds that are valued based on NAV. NAV of the funds is based on the fair value of each fund’s underlying investments. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. There were no Level 3 assets as of December 31, 2022 and 2021. See Note 13, “ Financial Instruments and Fair Value Measurements,” for definitions of fair value levels. The Company segregated its plan assets by the following major categories and levels for determining their fair value as of December 31, 2022: Cash and cash equivalents. Carrying value approximates fair value and these assets are classified as Level 1. Debt Securities. This category consists of bonds, short-term fixed income securities and fixed income pooled funds fair valued based on a compilation of primarily observable market information or broker quotes in over-the-counter markets and are classified as Level 2. Equity Securities. This category consists of equity pooled funds that are classified as Level 2 in the fair value hierarchy. Level 2 assets are valued using quoted prices in markets that are not active, broker dealer quotations, and other methods by which all significant input was observable at the measurement date. The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption on these investments or other reasons to indicate that the investment would be redeemed at an amount different than NAV. The fair value measurements in common/collective trusts, calculated using a NAV and their redemption restrictions, for the years ended December 31, 2022 and 2021, are as follows: Fair Value Redemption Frequency (If Currently Eligible) Redemption Notice Period 2022 2021 JP Morgan Chase Bank Strategic Property Fund $ 11.7 $ 12.8 Quarterly 30 days Pyramis Long Corporate A or Better 24.0 55.4 Daily 15 days Pyramis Long Duration 12.4 46.9 Daily 15 days Pyramis 810 Corporate 124.7 101.3 Daily 15 days Russell 3000 Index NL 46.0 81.1 Daily 1 day NT Collective Short Term Investment Fund 4.0 — Daily 1 day Total value of investments measured at NAV $ 222.8 $ 297.5 Risk Management For all directly invested funds, the concentration risk is monitored through specific guidelines in the investment manager mandates. The investment manager mandates were developed by the Company’s external investment advisor, and specify diversification standards such as the maximum exposure per issuer, and concentration limits per type of security, industry and country when applicable. For the investments made through pooled funds, the investment mandates of the funds were again reviewed by the Company’s external investment advisor, to determine that the investment objectives and guidelines were consistent with the Company’s overall pension plan risk management objectives. In managing the plan assets, management reviews and manages risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to the Company’s risk management approach and are integral to the overall investment strategy. Given the process in place to ensure a proper diversification of the portfolio, management believes that the Company pension plan assets are not exposed to significant concentration risk. Multiemployer Pension Plans The Company has previously participated in a number of MEPPs under terms of collective bargaining agreements that cover a number of its employees. The risks of participating in these MEPPs are different from single employer plans in the following aspects: • Assets contributed to the MEPPs by one company may be used to provide benefits to employees of other participating companies. • If a participating company stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating companies. • If the Company stops participating in some or all of its MEPPs, and continues in business, the Company would be required to pay an amount, referred to as a withdrawal liability, based on the unfunded status of the plan. The Company has withdrawn from all significant MEPPs and replaced these union sponsored “promise to pay in the future” defined benefit plans with a Company sponsored “pay as you go” defined contribution plan. The two MEPPs, the GCIU and GCC, are significantly underfunded, and will require the Company to pay a withdrawal liability to fund its pro rata share of the underfunding as of the plan year the full withdrawal was completed. As a result of the decision to withdraw, the Company accrued the estimated withdrawal liability based on information provided by each plan’s trustee. The GCIU Plan is a defined benefit plan that provides retirement benefits, total and permanent disability benefits, and pre-retirement death benefits for the participating union employees of the Company. The funded status of the GCIU Plan is classified as critical and declining based on the GCIU Plan’s 2022 certification to the United States Department of Labor, as the plan is projected to become insolvent within 20 years. As of January 1, 2022, the plan was projected to be insolvent in 2033. As a result, the GCIU Plan implemented a rehabilitation plan to improve the plan’s funded status. In 2019, the Company and the GCIU reached a settlement agreement for all claims, with scheduled payments until April 2032. The GCC Plan is a defined benefit plan that provides retirement benefits, disability benefits, and early retirement benefits for the participating union employees of the Company. The funded status of the GCC Plan is classified as critical based on the GCC Plan’s 2022 certification to the United States Department of Labor, improved from critical and declining status because it received Special Financial Assistance from the Pension Benefit Guaranty Corporation in 2022. The plan is still projected to become insolvent in 2037. As a result, the GCC Plan implemented a rehabilitation plan to improve the plan’s funded status. In 2016, the Company and the GCC reached a settlement agreement for all claims, with scheduled payments until February 2024. The Company made payments totaling $6.2 million for the years ended December 31, 2022 and 2021. The Company has reserved $28.3 million as the total MEPPs withdrawal liability as of December 31, 2022, of which $24.2 million was recorded in other long-term liabilities and $4.1 million was recorded in other current liabilities in the consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed as net earnings divided by the basic weighted average common shares outstanding. The calculation of diluted earnings per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned stock-based compensation costs attributable to future services. Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net earnings, and accordingly, the Company excludes them from the calculation. Anti-dilutive equity instruments excluded from the computation of diluted net earnings per shares were 0.2 million and 0.4 million class A common shares for the year ended December 31, 2022 and 2021, respectively. Reconciliations of the numerator and the denominator of the basic and diluted per share computations for the Company’s common stock for the years ended December 31, 2022 and 2021, are summarized as follows: 2022 2021 Numerator: Net earnings $ 9.3 $ 37.8 Denominator: Basic weighted average number of common shares outstanding for all classes of common stock 50.7 51.3 Plus: effect of dilutive equity incentive instruments 1.8 1.7 Diluted weighted average number of common shares outstanding for all classes of common shares 52.5 53.0 Earnings per share: Basic $ 0.18 $ 0.74 Diluted $ 0.18 $ 0.71 |
Equity Incentive Programs
Equity Incentive Programs | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Programs | Equity Incentive Programs The shareholders of the Company approved the Quad/Graphics, Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”) at the Company’s annual meeting of shareholders held on May 18, 2020, for two complementary purposes: (1) to attract and retain outstanding individuals to serve as directors, officers and employees; and (2) to increase shareholder value. The Company’s previous plan, the Quad/Graphics, Inc. 2010 Omnibus Plan (the “2010 Plan”), was terminated on the date of approval of the 2020 Plan, and no new awards will be granted under the 2010 Plan. All awards that were granted under the 2010 Plan that were outstanding as of May 18, 2020, will remain outstanding and will continue to be governed by the 2010 Plan. The 2020 Plan provides for an aggregate 3,000,000 shares of class A common stock reserved for issuance, plus shares still available for issuance or re-credited under the 2010 Plan. Awards under the 2020 Plan may consist of incentive awards, stock options, stock appreciation rights, performance shares, performance share units, shares of class A common stock, restricted stock (“RS”), restricted stock units (“RSU”), deferred stock units (“DSU”) or other stock-based awards as determined by the Company’s Board of Directors. Each stock option granted has an exercise price of no less than 100% of the fair market value of the class A common stock on the date of grant. There were 1,173,520 shares of class A common stock reserved for issuance under the 2020 Plan as of December 31, 2022. Authorized unissued shares or treasury shares may be used for issuance under the Company’s equity incentive programs. The Company plans to either use treasury shares of its class A common stock or issue shares of class A common stock to meet the stock requirements of its awards in the future. The Company recognizes compensation expense based on estimated grant date fair values for all share-based awards issued to employees and non-employee directors, including stock options, performance shares, performance share units, restricted stock, restricted stock units and deferred stock units. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite approximate three year service period of the awards, except DSU awards, which are fully vested and expensed on the grant date. The Company estimated the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Equity Incentive Compensation Expense Equity incentive compensation expense was recorded primarily in selling, general and administrative expenses in the consolidated statements of operations and includes expense recognized for liability awards that are remeasured on a quarterly basis. The total compensation expense recognized related to all equity incentive programs for the years ended December 31, 2022 and 2021, was as follows: Year ended December 31, 2022 2021 RS and RSU equity awards expense $ 5.1 $ 5.4 RSU liability awards expense 0.2 — DSU awards expense 0.7 0.8 Total equity incentive compensation expense $ 6.0 $ 6.2 Total future compensation expense related to all equity incentive programs granted as of December 31, 2022, was estimated to be $6.0 million, which consists entirely of expense for RS and RSU awards. Estimated future compensation expense is $3.5 million for 2023, $2.2 million for 2024 and $0.3 million for 2025. Stock Options Options vested over four years, with no vesting in the first year and one-third vesting upon the second, third and fourth anniversary dates. Options expire no later than the tenth anniversary of the grant date and are not credited with dividend declarations. Stock options were only to be granted to employees. There were no stock options granted, and no compensation expense was recognized related to stock options during the years ended December 31, 2022 and 2021. There is no future compensation expense for stock options granted as of December 31, 2022. The following table is a summary of the stock option activity for the year ended December 31, 2022: Shares Weighted Weighted Aggregate Outstanding and exercisable at December 31, 2021 56,034 $ 14.14 0.0 $ — Granted — — Exercised — — Canceled/forfeited/expired (56,034) 14.14 Outstanding and exercisable at December 31, 2022 — $ — 0.0 $ — The intrinsic value of options outstanding and exercisable as of December 31, 2021 was based on the fair value of the stock price. There were no stock options exercised for the years ended December 31, 2022 and 2021. Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit awards consist of shares or the rights to shares of the Company’s class A stock which are awarded to employees of the Company. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer by the employee. RSU awards are typically granted to eligible employees outside of the United States. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, death, disability or normal retirement of the grantee. Grantees receiving RS grants are able to exercise full voting rights and receive full credit for dividends during the vesting period. All such dividends will be paid to the RS grantee within 45 days of full vesting. Grantees receiving RSUs are not entitled to vote but do earn dividends. Upon vesting, RSUs will be settled either through cash payment equal to the fair market value of the RSUs on the vesting date or through issuance of Company class A stock. In general, RS and RSU awards will vest on the third anniversary of the grant date, provided the holder of the share is continuously employed by the Company until the vesting date. The following table is a summary of RS and RSU award activity for the year ended December 31, 2022: Restricted Stock Restricted Stock Units Shares Weighted- Weighted- Units Weighted- Weighted- Nonvested at December 31, 2021 3,053,019 $ 6.99 1.2 222,093 $ 10.41 0.5 Granted 1,693,743 3.97 54,014 4.00 Vested (1,039,567) 12.31 (169,489) 12.33 Forfeited (100,900) 4.22 (5,675) 4.68 Nonvested at December 31, 2022 3,606,295 $ 4.11 1.4 100,943 $ 4.08 1.5 In the first quarter of 2019, the Company issued RSU awards in connection with the acquisition of Periscope, Inc. that were accounted for as liability awards and vested on March 1, 2022. The awards were recorded at fair value on the initial issuance date and were remeasured to fair value at each reporting period, with the change in fair value being recorded in selling, general and administrative expense in the consolidated statements of operations. The change in fair value of the awards classified as liabilities resulted in $0.2 million of expense for the year ended December 31, 2022. The fair value of the RSU awards classified as liabilities was $0.5 million as of the year ended December 31, 2021. In general, RS and RSU awards will vest on the third anniversary of the grant date, provided the holder of the share is continuously employed by the Company until the vesting date. Compensation expense recognized for RS and RSUs classified as equity was $5.1 million and $5.4 million for the years ended December 31, 2022 and 2021, respectively. Deferred Stock Units Deferred stock units are awards of rights to shares of the Company’s class A stock and are awarded to non-employee directors of the Company. The following table is a summary of DSU award activity for the year ended December 31, 2022: Deferred Stock Units Units Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2021 687,391 $ 8.26 Granted 187,632 3.89 Settled (101,829) 7.90 Outstanding at December 31, 2022 773,194 $ 7.25 Each DSU award entitles the grantee to receive one share of class A stock upon the earlier of the separation date of the grantee or the second anniversary of the grant date, but could be subject to acceleration for a change in control, death or disability as defined in the individual DSU grant agreement. Grantees of DSU awards may not exercise voting rights, but are credited with dividend equivalents and those dividend equivalents will be converted into additional DSU awards based on the closing price of the class A stock. Compensation expense recognized for DSUs was $0.7 million and $0.8 million for the years ended December 31, 2022 and 2021, respectively. As DSU awards are fully vested on the grant date, all compensation expense was recognized at the date of grant. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company has three classes of common stock as follows (share data in millions): Issued Common Stock Authorized Shares Outstanding Treasury Total Issued Shares Class A stock ($0.025 par value) December 31, 2022 105.0 39.2 3.4 42.6 December 31, 2021 105.0 40.8 0.9 41.7 Class B stock ($0.025 par value) December 31, 2022 80.0 13.5 — 13.5 December 31, 2021 80.0 13.5 — 13.5 Class C stock ($0.025 par value) December 31, 2022 20.0 — 0.5 0.5 December 31, 2021 20.0 — 0.5 0.5 In accordance with the Articles of Incorporation, each class A common share has one vote per share and each class B and class C common share has ten votes per share on all matters voted upon by the Company’s shareholders. Liquidation rights are the same for all three classes of stock. The Company also has 0.5 million shares of $0.01 par value preferred stock authorized, of which none were issued at December 31, 2022 and 2021. The Company has no present plans to issue any preferred stock. On July 30, 2018, the Company’s Board of Directors authorized a share repurchase program of up to $100.0 million of the Company’s outstanding class A common stock. Under the authorization, share repurchases may be made at the Company’s discretion, from time to time, in the open market and/or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchase will depend on economic and market conditions, share price, trading volume, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. During the year ended December 31, 2022, the Company repurchased 3,093,662 shares of its Class A common stock at a weighted average price of $3.21 per share for a total purchase price of $9.9 million ($10.0 million, including commissions). There were no shares repurchased during the year ended December 31, 2021. As of December 31, 2022, there were $90.1 million of authorized repurchases remaining under the program. In accordance with the Articles of Incorporation, dividends are paid equally for all three classes of common shares. Due to uncertainty in client demand as a result of the COVID-19 pandemic, the Company’s Board of Directors proactively suspended the Company’s quarterly dividends beginning in the second quarter of 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2022 and 2021, were as follows: Translation Adjustments Interest Rate Swap Adjustments Pension Benefit Plan Adjustments Total Balance at January 1, 2021 $ (130.8) $ (12.3) $ (28.2) $ (171.3) Other comprehensive income (loss) before reclassifications (9.6) — 16.1 6.5 Amounts reclassified from accumulated other comprehensive loss to net earnings (2.7) 5.6 0.7 3.6 Net other comprehensive income (loss) (12.3) 5.6 16.8 10.1 Balance at December 31, 2021 (143.1) (6.7) (11.4) (161.2) Other comprehensive income (loss) before reclassifications 27.2 — (24.2) 3.0 Amounts reclassified from accumulated other comprehensive loss to net earnings 27.3 2.6 — 29.9 Net other comprehensive income (loss) 54.5 2.6 (24.2) 32.9 Balance at December 31, 2022 $ (88.6) $ (4.1) $ (35.6) $ (128.3) The details about the reclassifications from accumulated other comprehensive loss to net earnings for the years ended December 31, 2022 and 2021, were as follows: Details about Accumulated Other Year Ended December 31, Consolidated Statements of Operations Presentation 2022 2021 Amortization of amounts accumulated for interest rate swaps de-designated as cash flow hedges $ 3.4 $ 7.1 Interest expense Impact of income taxes (0.8) (1.5) Income tax expense Amortization of amounts accumulated for interest rate swaps de-designated as cash flow hedges, net of tax 2.6 5.6 Reclassification of foreign currency translation adjustments 27.3 (2.7) Restructuring, impairment and transaction-related charges Impact of income taxes — — Income tax expense Reclassification of foreign currency translation adjustments, net of tax 27.3 (2.7) Plan settlements on pension benefit plans — 0.9 Pension income Impact of income taxes — (0.2) Income tax expense Plan settlements on pension benefit plans, net of tax — 0.7 Total reclassifications for the period, net of tax $ 29.9 $ 3.6 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Quad is a global marketing experience company that gives brands a more streamlined, impactful, flexible and frictionless way to go to market and reach consumers. The Company leverages its three key competitive advantages — integrated marketing platform excellence, ongoing innovation, and culture and social purpose — to create a better way for its clients, employees and communities. The Company’s operating and reportable segments are aligned with how the chief operating decision maker of the Company currently manages the business. The Company’s operating and reportable segments, including their product and service offerings, and a “Corporate” category are as follows: • United States Print and Related Services • International • Corporate United States Print and Related Services The United States Print and Related Services segment is predominantly comprised of the Company’s United States printing operations and is managed as one integrated platform. This includes print execution and logistics for retail inserts, catalogs, long-run publications, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, as well as other commercial and specialty printed products, along with global paper procurement, and marketing and other complementary services, such as data and analytics, technology solutions, media services, creative and content solutions, managed services and execution in non-print channels (e.g., digital and broadcast). This segment also includes the manufacture of ink. International The International segment consists of the Company’s printing operations in Europe and Latin America, including operations in England, France, Germany, Poland, Argentina, Colombia, Mexico and Peru, as well as investments in printing operations in India. This segment provides printed products and marketing and other complementary services consistent with the United States Print and Related Services segment. Corporate Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal and finance, as well as certain expenses and income from frozen employee retirement plans, such as pension benefit plans. The following is a summary of segment information for the years ended December 31, 2022 and 2021: Operating Income (Loss) Restructuring, Impairment and Transaction-Related Charges Net Sales Depreciation and Amortization Capital Expenditures Products Services Year ended December 31, 2022 United States Print and Related Services $ 2,126.6 $ 668.1 $ 108.3 $ 124.7 $ 46.4 $ 12.1 International 401.7 20.6 (4.5) 16.1 13.9 30.7 Total operating segments 2,528.3 688.7 103.8 140.8 60.3 42.8 Corporate — — (50.3) 0.5 — 2.0 Total $ 2,528.3 $ 688.7 $ 53.5 $ 141.3 $ 60.3 $ 44.8 Year ended December 31, 2021 United States Print and Related Services $ 1,935.8 $ 692.8 $ 163.1 $ 138.7 $ 46.4 $ (14.5) International 311.3 20.5 (16.1) 17.5 3.6 31.3 Total operating segments 2,247.1 713.3 147.0 156.2 50.0 16.8 Corporate — — (54.2) 1.1 — 2.1 Total $ 2,247.1 $ 713.3 $ 92.8 $ 157.3 $ 50.0 $ 18.9 Restructuring, impairment and transaction-related charges for the years ended December 31, 2022 and 2021, are further described in Note 3, “Restructuring, Impairment and Transaction-Related Charges,” and are included in the operating income (loss) results by segment above. A reconciliation of operating income to earnings before income taxes and equity in earnings of unconsolidated entity as reported in the consolidated statements of operations for the years ended December 31, 2022 and 2021, was as follows: 2022 2021 Operating income $ 53.5 $ 92.8 Less: interest expense 48.4 59.6 Less: net pension income (12.6) (14.5) Less: loss on debt extinguishment — 0.7 Earnings before income taxes and equity in earnings of unconsolidated entity $ 17.7 $ 47.0 Total assets by segment at December 31, 2022 and 2021, are shown in the following table. 2022 2021 United States Print and Related Services $ 1,390.2 $ 1,459.7 International 289.5 252.7 Total operating segments 1,679.7 1,712.4 Corporate 22.1 177.6 Total $ 1,701.8 $ 1,890.0 |
Geographic Area Information
Geographic Area Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Geographic Area Information | Geographic Area Information The table below presents the Company’s net sales and long-lived assets as of and for the years ended December 31, 2022 and 2021, by geographic region. The amounts in this table differ from the segment data presented in Note 19, “Segment Information,” because each operating segment includes operations in multiple geographic regions, based on the Company’s management reporting structure. United States Europe Latin America Other Combined 2022 Net sales Products $ 2,076.9 $ 181.3 $ 259.6 $ 10.5 $ 2,528.3 Services 668.1 20.6 — — 688.7 Property, plant and equipment—net 563.6 51.6 46.9 10.0 672.1 Operating lease right-of-use assets—net 102.6 2.3 3.8 2.4 111.1 Other intangible assets—net 45.2 0.3 1.4 — 46.9 Other long-term assets 67.8 7.4 5.1 0.5 80.8 2021 Net sales Products $ 1,892.0 $ 161.3 $ 183.0 $ 10.8 $ 2,247.1 Services 692.8 20.5 — — 713.3 Property, plant and equipment—net 616.8 60.4 41.6 8.2 727.0 Operating lease right-of-use assets—net 118.9 3.3 0.7 2.8 125.7 Other intangible assets—net 71.9 1.4 2.0 — 75.3 Other long-term assets 53.1 6.0 6.9 0.5 66.5 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform. Additionally, ASU 2020-04 permits entities to apply certain expedients and exceptions for contracts, hedging relationships, and other transactions impacted by the anticipated transition away from the use of LIBOR or other interbank offered rates to alternative reference rates. ASU 2020-04 was further updated by Accounting Standards Update 2021-01 “Reference Rate Reform (Topic 848)” (“ASU 2021-01”) which further clarified the scope of Topic 848. As amended in ASU 2022-06, this optional guidance is effective as of March 12, 2020, through December 31, 2024. The Company expects to elect the practical expedient outlined in ASU 2020-04 and ASU 2021-01 which allows the Company to prospectively adjust the effective interest rate after a reference rate change. Reference rate reform is not expected to have a material impact on the consolidated financial statements upon the transition from LIBOR to SOFR as the Company’s reference rate, effective February 1, 2023. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations —Quad is a global marketing experience company that gives brands a more streamlined, impactful, flexible and frictionless way to go to market and reach consumers. The Company leverages its three key competitive advantages — integrated marketing platform excellence, ongoing innovation, and culture and social purpose — to create a better way for its clients, employees and communities. With a marketing platform intentionally built for integrated marketing execution, Quad helps brands reduce the complexity of working with multiple agency partners and vendors; increase marketing process efficiency; and maximize marketing effectiveness. The Company’s holistic, multichannel, through-the-line marketing solutions include strategy and consulting, data and analytics, technology solutions, media services, creative and content solutions, and managed services. With unmatched scale for client-based, on-site services and highly qualified talent with expansive subject matter expertise, the Company has the resources and knowledge to help a wide variety of clients across multiple verticals, including those in industries such as retail, publishing, consumer packaged goods, financial services, healthcare, insurance and direct-to-consumer. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation —The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned controlled subsidiaries and have been prepared in accordance with GAAP. The results of operations and accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. Investments in entities where the Company has both the ability to exert significant influence but not control and an ownership interest of 50% or less but more than 20% are accounted for using the equity method of accounting. Investments in entities where the Company does not exert significant influence or control and has an ownership interest of less than 20% are accounted for using the cost method of accounting. Intercompany transactions and balances have been eliminated in consolidation. |
Foreign Operations | Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into United States dollars at the exchange rate existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive income (loss) on the consolidated statements of shareholders’ equity, while transaction gains and losses are recorded in selling, general and administrative expenses on the consolidated statements of operations. Foreign exchange transactions resulted in losses of $2.1 million and $2.9 million during the years ended December 31, 2022 and 2021, respectively. The Company had a 49% interest in Plural, a commercial printer based in São Paulo, Brazil, as of December 31, 2021 and through the date of the Company’s sale of the investment in Plural in January 2022. The Company accounted for this entity using the equity method of accounting. The Company’s equity in the earnings of Plural’s operations was recorded in equity in earnings of unconsolidated entity in the Company’s consolidated statements of operations, and was included within the International segment. As a result of the planned sale, the Company recorded a $32.1 million impairment charge during the year ended December 31, 2021. Quad has no unconsolidated entities as of December 31, 2022. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements requires the use of management’s estimates and assumptions that affect the reported assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to: allowances for doubtful accounts, inventory obsolescence, asset valuations and useful lives, pension benefits, self-insurance reserves, stock-based compensation, taxes, restructuring and other provisions and contingencies. |
Revenue Recognition and Byproduct Recoveries | Revenue Recognition —The Company recognizes its products and services revenue based on when the transfer of control passes to the customer or when the service is completed and accepted by the customer. Under agreements with certain customers, products may be stored by the Company for future delivery and revenue is recognized upon shipment to the customer. In these situations, the Company may receive warehouse management fees for the services it provides. Product returns are not significant because the products are customized; however, the Company accrues for the estimated amount of customer allowances at the time of sale based on historical experience and known trends. Revenue from services is recognized as services are performed. Revenues related to the Company’s imaging operations, which include digital content management, photography, color services and page production, are recognized in accordance with the terms of the contract, typically upon completion of the performed service and acceptance by the customer. Revenues related to the Company’s logistics operations, which includes the delivery of printed material, are recognized upon completion of services. Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross as a principal or net of related costs as an agent. Billings for third-party shipping and handling costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross in net sales and cost of sales in the consolidated statements of operations. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper. Revenues for Company-supplied paper are recognized on a gross basis. |
Financial Instruments | Financial Instruments —The Company uses derivative financial instruments for the purpose of hedging interest rate, commodity and foreign exchange exposures that exist as part of ongoing business operations, including interest rate swap and collar agreements, natural gas forward purchase contracts and foreign exchange contracts. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. Derivative instruments are recorded on the consolidated balance sheets as either assets or liabilities measured at their fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings. The ineffective portions of the changes in the fair value of hedges are recognized in earnings. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the consolidated statements of cash flows in the same category as the item being hedged. |
Fair Value Measurement | Fair Value Measurement —The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. See Note 13, “Financial Instruments and Fair Value Measurements,” for further discussion. |
Research and Development | Research and Development —Research and development costs related to the development of new products or the adaptation of existing products are expensed as incurred, included in cost of sales and totaled $3.3 million and $3.1 million during the years ended December 31, 2022 and 2021, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Receivables | Receivables —Receivables are stated net of allowances for credit losses. No single customer comprised more than 5% of the Company’s consolidated net sales in 2022 or 2021, or 5% of the Company’s consolidated receivables as of December 31, 2022 or 2021. In accordance with ASC 326— Financial Instruments — Credit Losses (“ASC 326”), the Company measures expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable forecasts. See Note 5, “Receivables,” for further discussion on the transactions affecting the allowances for doubtful accounts. |
Inventories | Inventories —Inventories include material, labor, and plant overhead and are stated at the lower of cost or net realizable value. At December 31, 2022 and 2021, all inventories were valued using the first-in, first-out method. See Note 6, “Inventories,” for the components of the Company’s inventories. |
Leases | Leases —Leases are accounted for under the right-of-use model, which requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. See Note 11, “Leases,” for additional accounting policies. |
Property, Plant and Equipment | Property, Plant and Equipment —Property, plant and equipment are recorded at cost, and are depreciated over the estimated useful lives of the assets using the straight-line method for financial reporting purposes. See Note 7, “Property, Plant and Equipment,” for the components of the Company’s property, plant and equipment. Major improvements that extend the useful lives of existing assets are capitalized and charged to the asset accounts. Repairs and maintenance, which do not significantly improve or extend the useful lives of the respective assets, are expensed as incurred. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. When an asset is retired or disposed, the associated costs and accumulated depreciation are eliminated, and the resulting gain or loss is recognized in the Company’s consolidated statements of operations. Asset Category Range of Useful Lives Buildings 10 to 40 Years Machinery and equipment 3 to 15 Years Other 3 to 10 Years |
Other Intangible Assets | Other Intangible Assets —Identifiable intangible assets are recognized apart from goodwill and are amortized over their estimated useful lives. |
Impairment of Long-Lived and Other Intangible Assets | Impairment of Long-Lived and Other Intangible Assets —The Company evaluates long-lived assets and other intangible assets (of which the most significant are property, plant and equipment; right-of-use assets and customer relationship intangible assets) whenever events and circumstances have occurred that indicate the carrying value of an asset may not be recoverable. Determining whether impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount and the asset’s residual value, if any. In turn, assessing whether there is an impairment loss requires a determination of recoverability, which is generally estimated by the ability to recover the balance of the assets from expected future operating cash flows on an undiscounted basis. If impairment is determined to exist, any related impairment loss is calculated based on the difference in the fair value and carrying value of the asset. |
Goodwill | Goodwill —Goodwill is reviewed annually for impairment as of October 31, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. In performing this analysis, the Company compares each reporting unit’s fair value to its carrying value. The fair value is estimated based on comparable company market valuations and/or expected future discounted cash flows to be generated by the reporting unit. If the carrying value exceeds the reporting unit’s fair value, an impairment loss would be charged to operations in the period identified. See Note 4, “Goodwill and Other Intangible Assets,” for further discussion. |
Workers' Compensation | Workers’ Compensation —The Company is self-insured for a significant portion of its expected workers’ compensation program. Insurance is purchased for individual workers’ compensation claims that exceed $0.8 million. The Company establishes reserves for unresolved claims and for an estimate of incurred but not reported (“IBNR”) claims. These reserves and estimates of IBNR claims are based upon an actuarial study, which is performed annually as of October 31st and is adjusted by the actuarially determined losses and actual claims payments for November and December. The Company also monitors actual claim developments, including incurrence or settlement of individual large claims during the interim periods between actuarial studies as another means of estimating the adequacy of the reserves. As of December 31, 2022, the Company has net reserves for workers’ compensation of $29.9 million, of which $6.6 million was recorded in other current liabilities and $34.5 million was recorded in other long-term liabilities in the consolidated balance sheets (see Note 8, “Other Current and Long-Term Liabilities”). These reserves are net of $11.2 million recorded in other long-term assets in the consolidated balance sheets for estimated claims covered by purchased insurance. As of December 31, 2021, the Company had net reserves for workers’ compensation of $34.2 million, of which $7.5 million was recorded in other current liabilities and $40.1 million was recorded in other long-term liabilities in the consolidated balance sheets (see Note 8, “Other Current and Long-Term Liabilities”). These reserves were net of $13.4 million recorded in other long-term assets in the consolidated balance sheets for estimated claims covered by purchased insurance. |
Income Taxes | Income Taxes —The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of items reported in the financial statements. Under this method, deferred tax assets and liabilities are measured based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the effective date of enactment. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. This determination is based upon all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent financial operations. If the Company determines that a deferred income tax asset will not be fully realized in the future, then a valuation allowance is established or increased to reflect the amount at which the asset will more likely than not be realized, which would increase the Company’s provision for income taxes. In a period after a valuation allowance has been established, if the Company determines the related deferred income tax assets will be realized in the future in excess of their net recorded amount, then an adjustment to reduce the related valuation allowance will be made, which would reduce the Company’s provision for income taxes. The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its consolidated financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is more likely than not of being recognized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. |
Pension Plans | Pension Plans —The Company assumed certain frozen underfunded defined benefit pension plans as part of the 2010 World Color Press acquisition. Pension plan costs are determined using actuarial methods and are funded through contributions. The Company records amounts relating to its pension plans based on calculations which include various actuarial assumptions including discount rates, assumed rates of return, and mortality. The Company reviews its actuarial assumptions on an annual basis and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the consolidated balance sheets, but are generally amortized into operating income over future periods, with the deferred amount recorded in accumulated other comprehensive loss on the consolidated balance sheets. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. For the purposes of calculating the expected return on plan assets, those assets are valued at fair value. When an event gives rise to both a curtailment and a settlement, the curtailment is accounted for prior to the settlement. The Company’s measurement date to measure the defined benefit plan assets and the projected benefit obligation is December 31. The Company has previously participated in MEPPs as a result of the acquisition of World Color Press. Due to the significant underfunded status of the MEPPs, the Company has withdrawn from all significant MEPPs and replaced these union sponsored “promise to pay in the future” defined benefit plans with a Company sponsored “pay as you go” defined contribution plan, which is the form of retirement benefit provided to Quad’s employees. As a result of the decision to withdraw, the Company recorded a withdrawal liability for the MEPPs based on information received from the MEPPs’ trustees. See Note 14, “Employee Retirement Plans,” for further discussion. |
Stock-Based Compensation | Stock-Based Compensation —The Company recognizes stock-based compensation expense over the vesting period for all stock-based awards made to employees and directors based on the fair value of the instrument at the time of grant. Equity awards accounted for as liabilities are recorded at fair value on the initial issuance date and are remeasured to fair value at each reporting period, with the change in fair value being recorded in selling, general and administrative expense in the consolidated statements of operations. See Note 16, “Equity Incentive Programs,” for further discussion. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) —Accumulated other comprehensive income (loss) consists primarily of unrecognized actuarial gains and losses and prior service costs for pension plans, foreign currency translation adjustments and interest rate swap adjustments, and is presented in the consolidated statements of shareholders’ equity. See Note 18, “Accumulated Other Comprehensive Loss,” for further discussion. |
Fair Value Measurement Policy | Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of acquisitions or impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. There we re no Level 3 recurring measurements of assets or liabilities as of December 31, 2022. |
Earnings (Loss) Per Share | Basic earnings per share is computed as net earnings divided by the basic weighted average common shares outstanding. The calculation of diluted earnings per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned stock-based compensation costs attributable to future services.Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net earnings, and accordingly, the Company excludes them from the calculation. |
New Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform. Additionally, ASU 2020-04 permits entities to apply certain expedients and exceptions for contracts, hedging relationships, and other transactions impacted by the anticipated transition away from the use of LIBOR or other interbank offered rates to alternative reference rates. ASU 2020-04 was further updated by Accounting Standards Update 2021-01 “Reference Rate Reform (Topic 848)” (“ASU 2021-01”) which further clarified the scope of Topic 848. As amended in ASU 2022-06, this optional guidance is effective as of March 12, 2020, through December 31, 2024. The Company expects to elect the practical expedient outlined in ASU 2020-04 and ASU 2021-01 which allows the Company to prospectively adjust the effective interest rate after a reference rate change. Reference rate reform is not expected to have a material impact on the consolidated financial statements upon the transition from LIBOR to SOFR as the Company’s reference rate, effective February 1, 2023. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Range of Useful Lives | Asset Category Range of Useful Lives Buildings 10 to 40 Years Machinery and equipment 3 to 15 Years Other 3 to 10 Years |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information —The following table summarizes certain supplemental cash flow information for the years ended December 31, 2022 and 2021: 2022 2021 Interest paid, net of amounts capitalized $ 44.0 $ 41.8 Income taxes paid 6.2 4.3 Non-cash investing and financing activities: Non-cash finance lease additions 1.1 1.4 Non-cash operating lease additions 17.6 74.6 Acquisition of a business: Fair value of assets acquired 5.0 — Liabilities assumed (2.4) — Acquisition of a business $ 2.6 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue Disaggregation The following table provides information about disaggregated revenue by the Company’s operating segments and major products and services offerings for the years ended December 31, 2022 and 2021: United States Print International Total Year ended December 31, 2022 Catalog, publications, retail inserts and directories $ 1,476.3 $ 282.5 $ 1,758.8 Direct mail and other printed products 640.6 118.2 758.8 Other 9.7 1.0 10.7 Total Products 2,126.6 401.7 2,528.3 Logistics services 310.4 19.3 329.7 Marketing services and medical services 357.7 1.3 359.0 Total Services 668.1 20.6 688.7 Total Net Sales $ 2,794.7 $ 422.3 $ 3,217.0 Year ended December 31, 2021 Catalog, publications, retail inserts and directories $ 1,368.6 $ 231.5 $ 1,600.1 Direct mail and other printed products 558.9 78.8 637.7 Other 8.3 1.0 9.3 Total Products 1,935.8 311.3 2,247.1 Logistics services 345.8 19.5 365.3 Marketing services and medical services 347.0 1.0 348.0 Total Services 692.8 20.5 713.3 Total Net Sales $ 2,628.6 $ 331.8 $ 2,960.4 |
Capitalized Contract Cost | Activity impacting costs to obtain contracts for the year ended December 31, 2022, was as follows: Costs to Obtain Contracts Balance at January 1, 2022 $ 5.1 Costs to obtain contracts 0.4 Amortization of costs to obtain contracts (2.2) Balance at December 31, 2022 $ 3.3 |
Restructuring, Impairment and_2
Restructuring, Impairment and Transaction-Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company recorded restructuring, impairment and transaction-related charges for the years ended December 31, 2022 and 2021, as follows: 2022 2021 Employee termination charges $ 7.3 $ 9.9 Impairment charges 2.2 34.9 Transaction-related charges 2.0 0.6 Integration costs 0.7 — Other restructuring charges 32.6 (26.5) Total $ 44.8 $ 18.9 |
Schedule of Restructuring Reserve by Type of Cost | Activity impacting the Company’s restructuring reserves for the years ended December 31, 2022 and 2021, was as follows: Employee Impairment Transaction-Related Integration Other Total Balance at January 1, 2021 $ 14.6 $ — $ 0.5 $ — $ 25.8 $ 40.9 Expense (income), net 9.9 34.9 0.6 — (26.5) 18.9 Cash payments, net (19.0) — (0.7) — (13.3) (33.0) Non-cash adjustments/reclassifications (0.8) (34.9) — — 64.2 28.5 Balance at December 31, 2021 $ 4.7 $ — $ 0.4 $ — $ 50.2 $ 55.3 Expense, net 7.3 2.2 2.0 0.7 32.6 44.8 Cash payments, net (4.1) — (0.9) (0.7) (15.7) (21.4) Non-cash adjustments/reclassifications (5.0) (2.2) — — (61.9) (69.1) Balance at December 31, 2022 $ 2.9 $ — $ 1.5 $ — $ 5.2 $ 9.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Accumulated Goodwill Impairment | The accumulated goodwill impairment losses and the carrying value of goodwill at December 31, 2022 and 2021, were as follows: United States Print and Related Services International Total Goodwill $ 864.7 $ 30.0 $ 894.7 Accumulated goodwill impairment loss (778.3) (30.0) (808.3) Goodwill, net of accumulated goodwill impairment loss $ 86.4 $ — $ 86.4 | |
Schedule of Goodwill | Activity impacting goodwill for the year ended December 31, 2021, was as follows: United States Print and Related International Total Balance at January 1, 2021 $ 103.0 $ — $ 103.0 Sale of third-party logistics business (16.6) — (16.6) Balance at December 31, 2021 $ 86.4 $ — $ 86.4 | |
Schedule of Components of Other Intangible Assets | The components of other intangible assets at December 31, 2022 and 2021, were as follows: December 31, 2022 December 31, 2021 Weighted Gross Accumulated Amortization Net Book Gross Accumulated Net Book Finite-lived intangible assets: Trademarks, patents, licenses and agreements 6 $ 67.2 $ (57.2) $ 10.0 $ 68.1 $ (50.7) $ 17.4 Capitalized software 5 21.5 (17.4) 4.1 19.2 (14.3) 4.9 Acquired technology 5 3.6 (1.9) 1.7 3.6 (1.2) 2.4 Customer relationships 6 559.9 (528.8) 31.1 560.1 (509.5) 50.6 Total finite-lived intangible assets $ 652.2 $ (605.3) $ 46.9 $ 651.0 $ (575.7) $ 75.3 | |
Schedule of Estimated Future Amortization Expense Related to Other Intangible Assets | The following table outlines the estimated future amortization expense related to other intangible assets as of December 31, 2022: Amortization Expense 2023 $ 28.1 2024 15.6 2025 2.4 2026 0.6 2027 0.2 Total $ 46.9 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity impacting the allowance for credit losses for the years ended December 31, 2022 and 2021, was as follows: 2022 2021 Balance at January 1, $ 28.2 $ 33.8 Provisions 3.4 1.3 Write-offs (5.2) (6.9) Balance at December 31, $ 26.4 $ 28.2 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories at December 31, 2022 and 2021, were as follows: 2022 2021 Raw materials and manufacturing supplies $ 173.7 $ 148.6 Work in process 38.3 31.6 Finished goods 48.7 46.0 Total $ 260.7 $ 226.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at December 31, 2022 and 2021, were as follows: 2022 2021 Land $ 68.2 $ 73.6 Buildings 651.9 658.4 Machinery and equipment 2,854.0 2,883.7 Other (1) 165.0 181.9 Construction in progress 30.5 25.1 Property, plant and equipment—gross 3,769.6 3,822.7 Less: accumulated depreciation (3,097.5) (3,095.7) Property, plant and equipment—net $ 672.1 $ 727.0 ______________________________ (1) Other consists of computer equipment and software, vehicles, furniture and fixtures, leasehold improvements and communication related equipment. |
Other Current and Long-Term L_2
Other Current and Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Components of Accrued and Other Long-Term Liabilities | The components of other current and long-term liabilities at December 31, 2022 and 2021, were as follows: December 31, 2022 December 31, 2021 Other Current Liabilities Other Total Other Current Liabilities Other Total Employee-related liabilities (1) $ 117.6 $ 45.3 $ 162.9 $ 128.8 $ 52.8 $ 181.6 Single employer pension plan obligations 1.4 34.9 36.3 1.6 17.6 19.2 Multiemployer pension plans – withdrawal liability 4.1 24.2 28.3 3.8 28.4 32.2 Deferred revenue 53.1 1.2 54.3 66.4 2.1 68.5 Tax-related liabilities 18.9 4.4 23.3 20.0 5.3 25.3 Restructuring liabilities 4.2 4.3 8.5 47.5 6.1 53.6 Interest and rent liabilities 0.4 — 0.4 2.8 — 2.8 Interest rate swap liabilities — — — 0.7 4.4 5.1 Other 49.4 14.5 63.9 42.7 11.4 54.1 Total $ 249.1 $ 128.8 $ 377.9 $ 314.3 $ 128.1 $ 442.4 ______________________________ (1) Employee-related liabilities consist primarily of payroll, bonus, vacation, health and workers’ compensation. |
Debt (Tables)
Debt (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Schedule of Long-term Debt | The weighted average interest rate for the year ended December 31, 2022 and the components of long-term debt at December 31, 2022 and 2021, were as follows: Weighted Average Interest Rate 2022 2021 Master note and security agreement 7.92 % $ 4.4 $ 7.2 Term loan A 4.54 % 556.7 575.4 Revolving credit facility 4.99 % — — Senior unsecured notes 7.00 % — 211.5 International term loans 5.39 % 5.2 5.3 International revolving credit facilities 3.00 % 8.4 8.8 Other — % — 1.4 Debt issuance costs (6.9) (9.1) Total debt $ 567.8 $ 800.5 Less: short-term debt and current portion of long-term debt (61.1) (245.6) Long-term debt $ 506.7 $ 554.9 | |
Schedule of Capitalized Debt Issuance Costs | Activity impacting the Company’s capitalized debt issuance costs for the years ended December 31, 2022 and 2021, was as follows: Capitalized Debt Balance at January 1, 2021 $ 6.9 Debt issuance costs from November 2, 2021 debt financing arrangement 5.2 Write off of debt issuance costs from Term Loan A pre-payments (0.4) Amortization expense (2.6) Balance at December 31, 2021 9.1 Amortization expense (2.2) Balance at December 31, 2022 $ 6.9 | |
Schedule of Loss on Debt Extinguishment | The loss on debt extinguishment recorded during the year ended December 31, 2021, was comprised of the following: 2021 Loss on Debt Extinguishment Debt issuance costs from November 2, 2021 debt financing arrangement 0.2 Loss on debt extinguishment from Senior Unsecured Note Repurchases 0.5 Total $ 0.7 | |
Schedule of Maturities of Long-term Debt | The approximate annual principal amounts due on long-term debt, ex cluding $6.9 million for future amortization of debt issuance costs, at December 31, 2022, were as follows: Principal Payments 2023 $ 55.5 2024 149.2 2025 72.8 2026 297.2 Total $ 574.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following summarizes certain lease information for the years ended December 31, 2022 and 2021: Year Ended Year Ended December 31, 2022 December 31, 2021 Lease cost Finance lease cost: Amortization of right-of-use assets $ 1.8 $ 2.9 Interest on lease liabilities 0.1 0.2 Operating lease cost 29.7 28.4 Short-term lease cost 0.2 — Sublease income (1.9) (2.0) Total lease cost $ 29.9 $ 29.5 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ — $ — Operating cash flows from operating leases 28.1 27.9 Financing cash flows from finance leases 2.1 3.0 Right-of-use assets obtained in exchange for new finance lease liabilities 1.1 1.4 Right-of-use assets obtained in exchange for new operating lease liabilities 17.6 74.6 Weighted-average remaining lease term — finance leases 4.2 years 2.3 years Weighted-average remaining lease term — operating leases 5.2 years 5.7 years Weighted-average discount rate — finance leases 5.2 % 4.5 % Weighted-average discount rate — operating leases 5.4 % 5.4 % The components of finance lease assets at December 31, 2022 and 2021, were as follows: 2022 2021 Leased equipment—gross $ 24.3 $ 23.8 Less: accumulated depreciation (21.9) (20.7) Leased equipment—net $ 2.4 $ 3.1 |
Schedule of Future Minimum Lease Payments for Operating Leases | Future maturities of lease liabilities at December 31, 2022, were as follows: Future Maturities of Operating Leases Future Maturities of Finance Leases 2023 $ 33.1 $ 0.9 2024 25.7 0.6 2025 21.4 0.5 2026 17.1 0.2 2027 13.9 0.2 2028 and thereafter 20.1 0.3 Total minimum payments 131.3 2.7 Less: present value discount (16.4) (0.3) Present value of minimum payments 114.9 2.4 Less: current portion (27.8) (0.8) Long-term lease liability $ 87.1 $ 1.6 |
Schedule of Future Minimum Rental Payments for Finance Leases | Future maturities of lease liabilities at December 31, 2022, were as follows: Future Maturities of Operating Leases Future Maturities of Finance Leases 2023 $ 33.1 $ 0.9 2024 25.7 0.6 2025 21.4 0.5 2026 17.1 0.2 2027 13.9 0.2 2028 and thereafter 20.1 0.3 Total minimum payments 131.3 2.7 Less: present value discount (16.4) (0.3) Present value of minimum payments 114.9 2.4 Less: current portion (27.8) (0.8) Long-term lease liability $ 87.1 $ 1.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income taxes have been based on the following components of earnings before income taxes and equity in earnings of unconsolidated entity for the years ended December 31, 2022 and 2021: 2022 2021 United States $ (13.9) $ 52.4 Foreign 31.6 (5.4) Total $ 17.7 $ 47.0 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ended December 31, 2022, and 2021, were as follows: 2022 2021 Federal: Current $ 0.4 $ 0.9 Deferred 3.3 3.2 State: Current 1.4 — Deferred (0.3) — Foreign: Current 4.2 3.3 Deferred (0.6) 2.1 Total income tax expense $ 8.4 $ 9.5 |
Schedule of Effective Income Tax Rate Reconciliation | The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s income tax expense for the years ended December 31, 2022 and 2021: 2022 2021 Federal statutory rate $ 3.7 $ 9.9 Loss on the sale of Argentina print business (5.1) — Adjustment to valuation allowances 3.1 (17.1) Executive compensation limitation 2.9 — Impact from foreign branches 1.9 4.5 Adjustment of deferred tax liabilities 1.5 3.5 Credits (1.5) — State taxes, net of federal benefit 1.1 (0.1) Adjustment of uncertain tax positions (0.3) 0.2 Impairment on investment in Plural — 6.2 Foreign rate differential — (1.9) Other 1.1 4.3 Income tax expense $ 8.4 $ 9.5 |
Schedule of Deferred Tax Assets and Liabilities | The significant deferred tax assets and liabilities as of December 31, 2022 and 2021, were as follows: 2022 2021 Deferred tax assets: Net operating loss and other tax carryforwards $ 108.8 $ 125.2 Goodwill and intangible assets 24.0 24.4 Pension and workers compensation benefits 23.9 21.9 Interest limitation 12.8 11.5 Accrued liabilities 9.4 12.9 Research or experimental expenditures 8.0 — Accrued compensation 7.6 8.1 Allowance for doubtful accounts 5.9 6.5 Other 8.6 10.8 Total deferred tax assets 209.0 221.3 Valuation allowance (113.9) (116.3) Net deferred tax assets $ 95.1 $ 105.0 Deferred tax liabilities: Property, plant and equipment $ (86.0) $ (99.2) Other (6.9) (5.9) Total deferred tax liabilities (92.9) (105.1) Net deferred tax assets (liabilities) $ 2.2 $ (0.1) |
Summary of Income Tax Contingencies | The following table summarizes the activity of the Company’s liability for unrecognized tax benefits at December 31, 2022 and 2021: 2022 2021 Balance at January 1, $ 11.7 $ 11.6 Additions for tax positions of prior years 0.2 0.5 Reductions for tax positions of prior years (0.3) (0.3) Lapses of applicable statutes of limitations (0.5) (0.1) Balance at December 31, $ 11.1 $ 11.7 2022 2021 Interest income $ (0.1) $ (0.5) Refunds — (0.1) |
Schedule of Accrued Interest and Penalties | The following table summarizes the Company’s liabilities for accrued interest and penalties related to income tax uncertainties at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Accrued interest Accrued penalties Accrued interest Accrued penalties Other current liabilities $ — $ — $ — $ — Other long-term liabilities 0.1 — 0.2 — Total liabilities $ 0.1 $ — $ 0.2 $ — |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Interest Rate Derivatives | March 19, 2019 Effective date March 29, 2019 Termination date March 28, 2024 Term 5 years Notional amount $130.0 Fixed swap rate 2.43% Balance Sheet Location December 31, 2022 December 31, 2021 Interest rate swap assets Prepaid expenses and other current assets $ 3.8 $ — Interest rate swap liabilities Other current liabilities — (0.7) Interest rate swap liabilities Other long-term liabilities — (4.4) December 12, 2022 December 14, 2022 Effective date February 1, 2023 February 1, 2023 Termination date October 30, 2026 October 31, 2025 Term 45 Months 33 Months Notional amount $75.0 $75.0 Floor Rate 2.09% 2.25% Ceiling Rate 5.00% 5.00% |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The cash flows associated with the interest rate swaps have been recognized as an adjustment to interest expense in the consolidated statements of operations: Year Ended December 31, 2022 2021 Cash Flow Impacts Net interest paid $ 1.7 $ 7.6 Impacts with Swaps as Nonhedging Instruments Income recognized in interest expense excluded from hedge effectiveness assessments $ (9.0) $ (9.3) Amounts reclassified out of accumulated other comprehensive loss to interest expense 3.4 7.1 Net interest expense 1.7 7.6 Total impact of swaps to interest expense $ (3.9) $ 5.4 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net pension income for the years ended December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Interest cost $ (9.7) $ (8.8) Expected return on plan assets 22.3 24.2 Net periodic pension income 12.6 15.4 Settlement charge — (0.9) Net pension income $ 12.6 $ 14.5 |
Schedule of Defined Benefit Plans Disclosures | The following table provides a reconciliation of the projected benefit obligation, fair value of plan assets and the funded status of the pension plans as of December 31, 2022 and 2021: Pension Benefits 2022 2021 Changes in benefit obligation Projected benefit obligation, beginning of year $ (462.7) $ (525.6) Interest cost (9.7) (8.8) Actuarial gain 86.1 23.1 Benefits paid 37.0 47.5 Liability benefit from settlement — 1.1 Projected benefit obligation, end of year (349.3) (462.7) Changes in plan assets Fair value of plan assets, beginning of year 443.5 469.0 Actual return on plan assets (94.5) 20.4 Employer contributions 1.0 1.6 Benefits paid (37.0) (47.5) Fair value of plan assets, end of year 313.0 443.5 Funded status $ (36.3) $ (19.2) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized on the consolidated balance sheets as of December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Current liabilities $ (1.4) $ (1.6) Noncurrent liabilities (34.9) (17.6) Total amount recognized $ (36.3) $ (19.2) |
Reconciliation of Accumulated Other Comprehensive Income (Loss) Prior to Any Deferred Tax Effects | The following table provides a reconciliation of the Company’s accumulated other comprehensive loss prior to any deferred tax effects at December 31, 2022 and 2021: Actuarial Gain / (Loss), net Balance at January 1, 2021 $ (38.1) Amount arising during the period 20.3 Impact of pension plan settlement charge included in net loss 0.9 Balance at December 31, 2021 (16.9) Amount arising during the period (30.7) Balance at December 31, 2022 $ (47.6) |
Schedule of Assumptions Used | The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Discount rate 2.77 % 2.37 % Expected long-term return on plan assets 5.25 % 5.50 % The weighted average assumptions used to determine pension benefit obligations at December 31, 2022 and 2021, were as follows: Pension Benefits 2022 2021 Discount rate (end of year rate) 5.46 % 2.77 % |
Schedule of Expected Benefit Payments | An estimate of the Plans’ present value of future benefit payments to be made from funded qualified plans and unfunded non-qualified plans to plan participants at December 31, 2022, were as follows: Future Pension 2023 $ 35.4 2024 33.7 2025 33.0 2026 31.7 2027 30.8 2028 - 2032 134.7 Thereafter 50.0 Total $ 349.3 |
Schedule of Allocation of Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2022 and 2021, by asset category were as follows: December 31, 2022 December 31, 2021 Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 0.6 $ 0.6 $ — $ — $ 3.2 $ 3.2 $ — $ — Debt securities 76.2 — 76.2 — 120.6 — 120.6 — Equity securities 13.4 — 13.4 — 22.2 — 22.2 — Total pension plan assets, excluding those measured at net asset value (“NAV”) 90.2 $ 0.6 $ 89.6 $ — 146.0 $ 3.2 $ 142.8 $ — Investments measured at NAV (1) 222.8 297.5 Total pension plan assets $ 313.0 $ 443.5 ______________________________ (1) These investments consist of privately placed funds that are valued based on NAV. NAV of the funds is based on the fair value of each fund’s underlying investments. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Schedule of Fair Value Measurements in Collective Trusts [Table Text Block] | The fair value measurements in common/collective trusts, calculated using a NAV and their redemption restrictions, for the years ended December 31, 2022 and 2021, are as follows: Fair Value Redemption Frequency (If Currently Eligible) Redemption Notice Period 2022 2021 JP Morgan Chase Bank Strategic Property Fund $ 11.7 $ 12.8 Quarterly 30 days Pyramis Long Corporate A or Better 24.0 55.4 Daily 15 days Pyramis Long Duration 12.4 46.9 Daily 15 days Pyramis 810 Corporate 124.7 101.3 Daily 15 days Russell 3000 Index NL 46.0 81.1 Daily 1 day NT Collective Short Term Investment Fund 4.0 — Daily 1 day Total value of investments measured at NAV $ 222.8 $ 297.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Reconciliations of the numerator and the denominator of the basic and diluted per share computations for the Company’s common stock for the years ended December 31, 2022 and 2021, are summarized as follows: 2022 2021 Numerator: Net earnings $ 9.3 $ 37.8 Denominator: Basic weighted average number of common shares outstanding for all classes of common stock 50.7 51.3 Plus: effect of dilutive equity incentive instruments 1.8 1.7 Diluted weighted average number of common shares outstanding for all classes of common shares 52.5 53.0 Earnings per share: Basic $ 0.18 $ 0.74 Diluted $ 0.18 $ 0.71 |
Equity Incentive Programs (Tabl
Equity Incentive Programs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The total compensation expense recognized related to all equity incentive programs for the years ended December 31, 2022 and 2021, was as follows: Year ended December 31, 2022 2021 RS and RSU equity awards expense $ 5.1 $ 5.4 RSU liability awards expense 0.2 — DSU awards expense 0.7 0.8 Total equity incentive compensation expense $ 6.0 $ 6.2 |
Schedule of Stock Options Activity | The following table is a summary of the stock option activity for the year ended December 31, 2022: Shares Weighted Weighted Aggregate Outstanding and exercisable at December 31, 2021 56,034 $ 14.14 0.0 $ — Granted — — Exercised — — Canceled/forfeited/expired (56,034) 14.14 Outstanding and exercisable at December 31, 2022 — $ — 0.0 $ — |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table is a summary of RS and RSU award activity for the year ended December 31, 2022: Restricted Stock Restricted Stock Units Shares Weighted- Weighted- Units Weighted- Weighted- Nonvested at December 31, 2021 3,053,019 $ 6.99 1.2 222,093 $ 10.41 0.5 Granted 1,693,743 3.97 54,014 4.00 Vested (1,039,567) 12.31 (169,489) 12.33 Forfeited (100,900) 4.22 (5,675) 4.68 Nonvested at December 31, 2022 3,606,295 $ 4.11 1.4 100,943 $ 4.08 1.5 |
Schedule of Deferred Stock Units Activity | The following table is a summary of DSU award activity for the year ended December 31, 2022: Deferred Stock Units Units Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2021 687,391 $ 8.26 Granted 187,632 3.89 Settled (101,829) 7.90 Outstanding at December 31, 2022 773,194 $ 7.25 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | The Company has three classes of common stock as follows (share data in millions): Issued Common Stock Authorized Shares Outstanding Treasury Total Issued Shares Class A stock ($0.025 par value) December 31, 2022 105.0 39.2 3.4 42.6 December 31, 2021 105.0 40.8 0.9 41.7 Class B stock ($0.025 par value) December 31, 2022 80.0 13.5 — 13.5 December 31, 2021 80.0 13.5 — 13.5 Class C stock ($0.025 par value) December 31, 2022 20.0 — 0.5 0.5 December 31, 2021 20.0 — 0.5 0.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss by Component, Net of Tax | The changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2022 and 2021, were as follows: Translation Adjustments Interest Rate Swap Adjustments Pension Benefit Plan Adjustments Total Balance at January 1, 2021 $ (130.8) $ (12.3) $ (28.2) $ (171.3) Other comprehensive income (loss) before reclassifications (9.6) — 16.1 6.5 Amounts reclassified from accumulated other comprehensive loss to net earnings (2.7) 5.6 0.7 3.6 Net other comprehensive income (loss) (12.3) 5.6 16.8 10.1 Balance at December 31, 2021 (143.1) (6.7) (11.4) (161.2) Other comprehensive income (loss) before reclassifications 27.2 — (24.2) 3.0 Amounts reclassified from accumulated other comprehensive loss to net earnings 27.3 2.6 — 29.9 Net other comprehensive income (loss) 54.5 2.6 (24.2) 32.9 Balance at December 31, 2022 $ (88.6) $ (4.1) $ (35.6) $ (128.3) |
Reclassification out of Accumulated Other Comprehensive Loss to Net Earnings (Loss) | The details about the reclassifications from accumulated other comprehensive loss to net earnings for the years ended December 31, 2022 and 2021, were as follows: Details about Accumulated Other Year Ended December 31, Consolidated Statements of Operations Presentation 2022 2021 Amortization of amounts accumulated for interest rate swaps de-designated as cash flow hedges $ 3.4 $ 7.1 Interest expense Impact of income taxes (0.8) (1.5) Income tax expense Amortization of amounts accumulated for interest rate swaps de-designated as cash flow hedges, net of tax 2.6 5.6 Reclassification of foreign currency translation adjustments 27.3 (2.7) Restructuring, impairment and transaction-related charges Impact of income taxes — — Income tax expense Reclassification of foreign currency translation adjustments, net of tax 27.3 (2.7) Plan settlements on pension benefit plans — 0.9 Pension income Impact of income taxes — (0.2) Income tax expense Plan settlements on pension benefit plans, net of tax — 0.7 Total reclassifications for the period, net of tax $ 29.9 $ 3.6 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following is a summary of segment information for the years ended December 31, 2022 and 2021: Operating Income (Loss) Restructuring, Impairment and Transaction-Related Charges Net Sales Depreciation and Amortization Capital Expenditures Products Services Year ended December 31, 2022 United States Print and Related Services $ 2,126.6 $ 668.1 $ 108.3 $ 124.7 $ 46.4 $ 12.1 International 401.7 20.6 (4.5) 16.1 13.9 30.7 Total operating segments 2,528.3 688.7 103.8 140.8 60.3 42.8 Corporate — — (50.3) 0.5 — 2.0 Total $ 2,528.3 $ 688.7 $ 53.5 $ 141.3 $ 60.3 $ 44.8 Year ended December 31, 2021 United States Print and Related Services $ 1,935.8 $ 692.8 $ 163.1 $ 138.7 $ 46.4 $ (14.5) International 311.3 20.5 (16.1) 17.5 3.6 31.3 Total operating segments 2,247.1 713.3 147.0 156.2 50.0 16.8 Corporate — — (54.2) 1.1 — 2.1 Total $ 2,247.1 $ 713.3 $ 92.8 $ 157.3 $ 50.0 $ 18.9 Total assets by segment at December 31, 2022 and 2021, are shown in the following table. 2022 2021 United States Print and Related Services $ 1,390.2 $ 1,459.7 International 289.5 252.7 Total operating segments 1,679.7 1,712.4 Corporate 22.1 177.6 Total $ 1,701.8 $ 1,890.0 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of operating income to earnings before income taxes and equity in earnings of unconsolidated entity as reported in the consolidated statements of operations for the years ended December 31, 2022 and 2021, was as follows: 2022 2021 Operating income $ 53.5 $ 92.8 Less: interest expense 48.4 59.6 Less: net pension income (12.6) (14.5) Less: loss on debt extinguishment — 0.7 Earnings before income taxes and equity in earnings of unconsolidated entity $ 17.7 $ 47.0 |
Geographic Area Information (Ta
Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The table below presents the Company’s net sales and long-lived assets as of and for the years ended December 31, 2022 and 2021, by geographic region. The amounts in this table differ from the segment data presented in Note 19, “Segment Information,” because each operating segment includes operations in multiple geographic regions, based on the Company’s management reporting structure. United States Europe Latin America Other Combined 2022 Net sales Products $ 2,076.9 $ 181.3 $ 259.6 $ 10.5 $ 2,528.3 Services 668.1 20.6 — — 688.7 Property, plant and equipment—net 563.6 51.6 46.9 10.0 672.1 Operating lease right-of-use assets—net 102.6 2.3 3.8 2.4 111.1 Other intangible assets—net 45.2 0.3 1.4 — 46.9 Other long-term assets 67.8 7.4 5.1 0.5 80.8 2021 Net sales Products $ 1,892.0 $ 161.3 $ 183.0 $ 10.8 $ 2,247.1 Services 692.8 20.5 — — 713.3 Property, plant and equipment—net 616.8 60.4 41.6 8.2 727.0 Operating lease right-of-use assets—net 118.9 3.3 0.7 2.8 125.7 Other intangible assets—net 71.9 1.4 2.0 — 75.3 Other long-term assets 53.1 6.0 6.9 0.5 66.5 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Equity Method and Cost Method Investments) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Plural Editora e Grafica | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49% | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage in investment required for equity method | 50% | |
Ownership percentage in investment required for cost method (less than) | 20% | |
Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage in investment required for equity method | 20% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Foreign currency transaction loss | $ 2.1 | $ 2.9 |
Research and development costs | $ 3.3 | 3.1 |
Maximum maturity period of highly liquid cash investments | 3 months | |
Self insurance reserve, insurance threshold | $ 0.8 | |
Self insurance reserve | 29.9 | 34.2 |
Self insurance reserve, current | 6.6 | 7.5 |
Self insurance reserve, noncurrent | 34.5 | 40.1 |
Self insurance reserve, claim settlement | $ 11.2 | $ 13.4 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Concentration Risk) (Details) - customer | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales | ||
Concentration Risk [Line Items] | ||
Concentration risk, customers above benchmark, number | 0 | 0 |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, customers above benchmark, number | 0 | 0 |
Minimum | Customer Concentration Risk | Sales | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 5% | 5% |
Minimum | Customer Concentration Risk | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 5% | 5% |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 15 years |
Other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 3 years |
Other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (years) | 10 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Information | ||
Interest paid, net of amounts capitalized | $ 44 | $ 41.8 |
Income taxes paid | 6.2 | 4.3 |
Non-cash finance lease additions | 1.1 | 1.4 |
Non-cash operating lease additions | 17.6 | 74.6 |
Acquisition of a business: | ||
Fair value of assets acquired | 5 | 0 |
Liabilities assumed | (2.4) | 0 |
Acquisition of a business | $ 2.6 | $ 0 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,217 | $ 2,960.4 |
Catalog, publications, retail inserts, books and directories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,758.8 | 1,600.1 |
Direct mail and other printed products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 758.8 | 637.7 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10.7 | 9.3 |
Total Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,528.3 | 2,247.1 |
Logistics services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 329.7 | 365.3 |
Imaging, marketing services and other services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 359 | 348 |
Total Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 688.7 | 713.3 |
United States Print and Related Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,794.7 | 2,628.6 |
United States Print and Related Services | Catalog, publications, retail inserts, books and directories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,476.3 | 1,368.6 |
United States Print and Related Services | Direct mail and other printed products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 640.6 | 558.9 |
United States Print and Related Services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9.7 | 8.3 |
United States Print and Related Services | Total Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,126.6 | 1,935.8 |
United States Print and Related Services | Logistics services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 310.4 | 345.8 |
United States Print and Related Services | Imaging, marketing services and other services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 357.7 | 347 |
United States Print and Related Services | Total Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 668.1 | 692.8 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 422.3 | 331.8 |
International | Catalog, publications, retail inserts, books and directories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 282.5 | 231.5 |
International | Direct mail and other printed products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 118.2 | 78.8 |
International | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1 | 1 |
International | Total Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 401.7 | 311.3 |
International | Logistics services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19.3 | 19.5 |
International | Imaging, marketing services and other services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1.3 | 1 |
International | Total Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 20.6 | $ 20.5 |
Revenue Recognition (Costs to O
Revenue Recognition (Costs to Obtain Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized contract costs | $ 3.3 | $ 5.1 |
Additional costs incurred | 0.4 | |
Contract costs amortized | $ 2.2 |
Revenue Recognition (Practical
Revenue Recognition (Practical Expedients) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Commitments that extended beyond one year | $ 0 |
Restructuring, Impairment and_3
Restructuring, Impairment and Transaction-Related Charges (Schedule of Restructuring Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Employee termination charges | $ 7.3 | $ 9.9 |
Impairment charges | 34.9 | |
Transaction-related charges | 2 | 0.6 |
Integration costs | 0.7 | 0 |
Other restructuring charges | 32.6 | (26.5) |
Total | $ 44.8 | 18.9 |
Equity Method Investment, Other than Temporary Impairment | $ 32.1 |
Restructuring, Impairment and_4
Restructuring, Impairment and Transaction-Related Charges (Restructuring Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Employee termination charges | $ 7.3 | $ 9.9 |
Integration costs | 0.7 | 0 |
Other restructuring charges | 32.6 | (26.5) |
Impairment charges | 34.9 | |
Impairment of machinery and equipment | 2.2 | 2.8 |
Impairment charges | 2.2 | 2.8 |
Transaction-related charges | 2 | 0.6 |
Non-cash adjustments/reclassifications | (69.1) | $ 28.5 |
Accrued Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | 4.2 | |
Accounts Payable | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | 1.1 | |
Other Noncurrent Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Long-term restructuring reserve | $ 4.3 |
Restructuring, Impairment and_5
Restructuring, Impairment and Transaction-Related Charges (Schedule of Restructuring Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Loss on the sale of Argentina print business | $ 23.1 | $ (20.9) |
Other restructuring charges | 32.6 | (26.5) |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 55.3 | 40.9 |
Expense, net | 44.8 | 18.9 |
Cash payments, net | (21.4) | (33) |
Non-cash adjustments/reclassifications | (69.1) | 28.5 |
Balance, end of year | 9.6 | 55.3 |
Facilities Idled | ||
Restructuring Cost and Reserve [Line Items] | ||
Vacant facility carrying costs and lease exit charges | 5.4 | 19.8 |
Equipment and Infrastructure Removal Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Equipment and infrastructure removal costs | 0.7 | 1.6 |
Sale of facilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Gains on the sale of facilities | 0 | (24.8) |
Argentina print business | ||
Restructuring Cost and Reserve [Line Items] | ||
Loss on the sale of Argentina print business | 23.1 | 0 |
Other restructuring charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Other restructuring activities | 3.4 | (23.1) |
Employee Termination Charges | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 4.7 | 14.6 |
Expense, net | 7.3 | 9.9 |
Cash payments, net | (4.1) | (19) |
Non-cash adjustments/reclassifications | (5) | (0.8) |
Balance, end of year | 2.9 | 4.7 |
Impairment Charges | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Expense, net | 2.2 | 34.9 |
Cash payments, net | 0 | 0 |
Non-cash adjustments/reclassifications | (2.2) | (34.9) |
Balance, end of year | 0 | 0 |
Transaction-Related Charges (Income) | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 0.4 | 0.5 |
Expense, net | 2 | 0.6 |
Cash payments, net | (0.9) | (0.7) |
Non-cash adjustments/reclassifications | 0 | 0 |
Balance, end of year | 1.5 | 0.4 |
Integration Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Expense, net | 0.7 | 0 |
Cash payments, net | (0.7) | 0 |
Non-cash adjustments/reclassifications | 0 | 0 |
Balance, end of year | 0 | 0 |
Other Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 50.2 | 25.8 |
Expense, net | 32.6 | (26.5) |
Cash payments, net | (15.7) | (13.3) |
Non-cash adjustments/reclassifications | (61.9) | 64.2 |
Balance, end of year | $ 5.2 | $ 50.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||
Goodwill | $ 86,400,000 | $ 86,400,000 | $ 103,000,000 | |
Goodwill impairment | $ 0 | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | ||
Amortization expense for other intangible assets | $ 30,900,000 | $ 31,500,000 | ||
Third-Party Logistics Business | Discontinued Operations, Held-for-sale | ||||
Goodwill [Line Items] | ||||
Disposal group, including discontinued operation, goodwill | $ (16,600,000) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Jun. 30, 2021 | |
Goodwill [Line Items] | |||
Goodwill | $ 894.7 | $ 894.7 | |
Accumulated goodwill impairment loss | (808.3) | (808.3) | |
Goodwill, net of accumulated goodwill impairment loss | 86.4 | 86.4 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 103 | ||
Sale of third-party logistics business | 16.6 | ||
Goodwill, ending balance | 86.4 | ||
United States Print and Related Services | |||
Goodwill [Line Items] | |||
Goodwill | 864.7 | 864.7 | |
Accumulated goodwill impairment loss | (778.3) | (778.3) | |
Goodwill, net of accumulated goodwill impairment loss | 86.4 | 86.4 | $ 86.4 |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 103 | ||
Sale of third-party logistics business | 16.6 | ||
Goodwill, ending balance | 86.4 | ||
International | |||
Goodwill [Line Items] | |||
Goodwill | 30 | 30 | |
Accumulated goodwill impairment loss | (30) | (30) | |
Goodwill, net of accumulated goodwill impairment loss | 0 | $ 0 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 0 | ||
Sale of third-party logistics business | 0 | ||
Goodwill, ending balance | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Intangible Assets, Excluding Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 652.2 | $ 651 |
Accumulated Amortization | (605.3) | (575.7) |
Total | $ 46.9 | 75.3 |
Trademarks, patents, licenses and agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 6 years | |
Gross Carrying Amount | $ 67.2 | 68.1 |
Accumulated Amortization | (57.2) | (50.7) |
Total | $ 10 | 17.4 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Gross Carrying Amount | $ 21.5 | 19.2 |
Accumulated Amortization | (17.4) | (14.3) |
Total | $ 4.1 | 4.9 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Gross Carrying Amount | $ 3.6 | 3.6 |
Accumulated Amortization | (1.9) | (1.2) |
Total | $ 1.7 | 2.4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 6 years | |
Gross Carrying Amount | $ 559.9 | 560.1 |
Accumulated Amortization | (528.8) | (509.5) |
Total | $ 31.1 | $ 50.6 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2023 | $ 28.1 | |
2024 | 15.6 | |
2025 | 2.4 | |
2026 | 0.6 | |
2027 | 0.2 | |
Total | $ 46.9 | $ 75.3 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Provisions | $ 3.4 | $ 1.3 |
Receivables - Credit Loss Allow
Receivables - Credit Loss Allowance Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at beginning of year | $ 28.2 | $ 33.8 |
Provisions | 3.4 | 1.3 |
Write-offs | (5.2) | (6.9) |
Balance at end of year | $ 26.4 | $ 28.2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and manufacturing supplies | $ 173.7 | $ 148.6 |
Work in process | 38.3 | 31.6 |
Finished goods | 48.7 | 46 |
Total | $ 260.7 | $ 226.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 68.2 | $ 73.6 |
Buildings | 651.9 | 658.4 |
Machinery and equipment | 2,854 | 2,883.7 |
Other | 165 | 181.9 |
Construction in progress | 30.5 | 25.1 |
Property, plant and equipment—gross | 3,769.6 | 3,822.7 |
Less: accumulated depreciation | (3,097.5) | (3,095.7) |
Property, plant and equipment—net | $ 672.1 | $ 727 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 28, 2021 | Jun. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $ 2.2 | $ 2.8 | ||
Depreciation expense | 110.4 | 125.8 | ||
Sale and leaseback transaction, gain (loss), net | 0 | $ 24.5 | ||
Sale leaseback transaction, term | 10 years | 7 years | ||
Chalfont, Pennsylvania | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net proceeds | $ 20 | |||
Sale and leaseback transaction, gain (loss), net | $ 13.7 | |||
Chalfont, Pennsylvania | Operating Lease, Right-Of-Use Asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | 8.2 | |||
Chalfont, Pennsylvania | Operating Lease Liability, Current | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | 1.3 | |||
Chalfont, Pennsylvania | Operating Lease Liability, Noncurrent | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | 7.1 | |||
West Allis, Wisconsin | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net proceeds | $ 31.9 | |||
Sale and leaseback transaction, gain (loss), net | $ 10.8 | |||
West Allis, Wisconsin | Operating Lease, Right-Of-Use Asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | 20.8 | |||
West Allis, Wisconsin | Operating Lease Liability, Current | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | 1.8 | |||
West Allis, Wisconsin | Operating Lease Liability, Noncurrent | ||||
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback transaction, net book value | $ 19.3 |
Other Current and Long-Term L_3
Other Current and Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Accrued Liabilities and Other Long-Term Liabilities [Line Items] | |||
Multiemployer pension plans – withdrawal liability | $ 28.3 | ||
Restructuring liabilities | 9.6 | $ 55.3 | $ 40.9 |
Accrued Liabilities | |||
Schedule of Accrued Liabilities and Other Long-Term Liabilities [Line Items] | |||
Employee-related Liabilities | 117.6 | 128.8 | |
Single employer pension plan obligations | 1.4 | 1.6 | |
Multiemployer pension plans – withdrawal liability | 4.1 | 3.8 | |
Deferred revenue | 53.1 | 66.4 | |
Tax-related liabilities | 18.9 | 20 | |
Restructuring liabilities | 4.2 | 47.5 | |
Interest and rent liabilities | 0.4 | 2.8 | |
Interest rate swap liabilities | 0 | 0.7 | |
Other | 49.4 | 42.7 | |
Total Accrued Liabilities and Other Liabilities | 249.1 | 314.3 | |
Other Noncurrent Liabilities | |||
Schedule of Accrued Liabilities and Other Long-Term Liabilities [Line Items] | |||
Employee-related Liabilities | 45.3 | 52.8 | |
Single employer pension plan obligations | 34.9 | 17.6 | |
Multiemployer pension plans – withdrawal liability | 24.2 | 28.4 | |
Deferred revenue | 1.2 | 2.1 | |
Tax-related liabilities | 4.4 | 5.3 | |
Restructuring liabilities | 4.3 | 6.1 | |
Interest and rent liabilities | 0 | 0 | |
Interest rate swap liabilities | 0 | 4.4 | |
Other | 14.5 | 11.4 | |
Total Accrued Liabilities and Other Liabilities | 128.8 | 128.1 | |
Accrued Liabilities and Other Noncurrent Liabilities | |||
Schedule of Accrued Liabilities and Other Long-Term Liabilities [Line Items] | |||
Employee-related Liabilities | 162.9 | 181.6 | |
Single employer pension plan obligations | 36.3 | 19.2 | |
Multiemployer pension plans – withdrawal liability | 28.3 | 32.2 | |
Deferred revenue | 54.3 | 68.5 | |
Tax-related liabilities | 23.3 | 25.3 | |
Restructuring liabilities | 8.5 | 53.6 | |
Interest and rent liabilities | 0.4 | 2.8 | |
Interest rate swap liabilities | 0 | 5.1 | |
Other | 63.9 | 54.1 | |
Total Accrued Liabilities and Other Liabilities | $ 377.9 | $ 442.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining minimum amount committed | $ 32.9 |
Debt (Components of Long-term D
Debt (Components of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | May 02, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Total debt | $ 567.8 | $ 800.5 | |
Debt issuance costs | (6.9) | (9.1) | |
Less: short-term debt and current portion of long-term debt | (61.1) | (245.6) | |
Long-term debt | $ 506.7 | 554.9 | |
Master note and security agreement | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 7.92% | ||
Total debt | $ 4.4 | 7.2 | |
Term Loan A | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.54% | ||
Total debt | $ 556.7 | 575.4 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.99% | ||
Total debt | $ 0 | 0 | |
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 7% | ||
Total debt | $ 0 | $ 209.1 | 211.5 |
International Term Loan | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 5.39% | ||
Total debt | $ 5.2 | 5.3 | |
International Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 3% | ||
Total debt | $ 8.4 | 8.8 | |
Other Debt Instruments | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 0% | ||
Total debt | $ 0 | $ 1.4 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||
Nov. 02, 2021 USD ($) | Dec. 21, 2018 USD ($) | Dec. 28, 2015 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan_facilities | Dec. 31, 2021 USD ($) | May 02, 2022 USD ($) | Jun. 29, 2020 USD ($) | Apr. 28, 2014 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 567,800,000 | $ 800,500,000 | |||||||
Loss on debt extinguishment | 0 | 700,000 | |||||||
Fair value of total debt | 600,000,000 | 800,000,000 | |||||||
Assets pledged as collateral | 1,300,000,000 | ||||||||
Secured Debt | Columbia and Peru | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 2,700,000 | ||||||||
Master note and security agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 4,400,000 | 7,200,000 | |||||||
Weighted average interest rate | 7.92% | ||||||||
Loss on debt extinguishment | 200,000 | ||||||||
Fourth Amendment To Senior Secured Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior secured credit facility | $ 500,000,000 | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component One | Reserve Adjusted LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component One | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component One | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component Two | Reserve Adjusted LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component Two | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Variable Rate Component Two | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Existing Maturity Date | Term Loan A | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 91,500,000 | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Extended Maturity Date | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate, increase | 0.50% | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Extended Maturity Date | Term Loan A | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 483,900,000 | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior secured credit facility | 432,500,000 | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Revolving Credit Facility | Existing Maturity Date | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior secured credit facility | 90,000,000 | ||||||||
Fifth Amendment To Senior Secured Credit Facility | Revolving Credit Facility | Extended Maturity Date | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior secured credit facility | $ 342,500,000 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 0 | 0 | |||||||
Weighted average interest rate | 4.99% | ||||||||
Letters of credit outstanding | $ 32,700,000 | ||||||||
Remaining borrowing capacity | 399,800,000 | ||||||||
Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 0 | 211,500,000 | $ 209,100,000 | ||||||
Weighted average interest rate | 7% | ||||||||
Debt instrument, face amount | $ 300,000,000 | ||||||||
Repayments of senior debt | $ 2,400,000 | 27,200,000 | |||||||
Loss on debt extinguishment | 500,000 | ||||||||
First International Term Loan | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 21,700,000 | ||||||||
Debt instrument, term | 6 years | ||||||||
Second International Term Loan | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 12,800,000 | $ 2,500,000 | |||||||
Weighted average interest rate | 1.96% | ||||||||
Debt instrument, term | 5 years | ||||||||
International Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 8,400,000 | $ 8,800,000 | |||||||
Weighted average interest rate | 3% | ||||||||
Remaining borrowing capacity | $ 7,700,000 | ||||||||
Number of loan facilities | loan_facilities | 2 | ||||||||
International Revolving Credit Facility | October 31, 2017 | Poland, Zlotych | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.40% | ||||||||
International Revolving Credit Facility | October 31, 2017 | Euro Member Countries, Euro | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.45% | ||||||||
International Revolving Credit Facility | October 31, 2017 | United Kingdom, Pounds | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.45% | ||||||||
International Revolving Credit Facility | November 20, 2018 | Poland, Zlotych | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
International Revolving Credit Facility | November 20, 2018 | Euro Member Countries, Euro | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1% |
Debt (Schedule of Debt Issuance
Debt (Schedule of Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Issuance Costs [Roll Forward] | ||
Debt issuance costs, beginning balance | $ 9.1 | $ 6.9 |
Impact and debt issuance costs, debt financing arrangements | 0 | 5.9 |
Amortization of debt issuance costs | (2.2) | (2.6) |
Debt issuance costs, ending balance | $ 6.9 | 9.1 |
Term Loan A | ||
Debt Issuance Costs [Roll Forward] | ||
Write off of deferred debt issuance cost | (0.4) | |
Fifth Amendment To Senior Secured Credit Facility | ||
Debt Issuance Costs [Roll Forward] | ||
Impact and debt issuance costs, debt financing arrangements | $ 5.2 |
Debt (Schedule of Loss on Debt
Debt (Schedule of Loss on Debt Extinguishment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Loss on debt extinguishment | $ 0 | $ 0.7 |
Master note and security agreement | ||
Debt Instrument [Line Items] | ||
Loss on debt extinguishment | 0.2 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Loss on debt extinguishment | $ 0.5 |
Debt (Debt Covenant Compliance)
Debt (Debt Covenant Compliance) (Details) | Nov. 02, 2021 USD ($) | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Covenant compliance, leverage ratio | 2.22 | |
Covenant compliance senior secured leverage ratio | 2.13 | |
Interest coverage | 6.39 | |
Net leverage ratio | 2.14 | |
Fifth Amendment To Senior Secured Credit Facility | Debt Instrument, Covenant, Scenario One | ||
Debt Instrument [Line Items] | ||
Prohibited dividend payments, threshold amount | $ 60,000,000 | |
Fifth Amendment To Senior Secured Credit Facility | Debt Instrument, Covenant, Scenario Two | ||
Debt Instrument [Line Items] | ||
Prohibited dividend payments, threshold amount | 100,000,000 | |
Revolving Credit Facility | Fifth Amendment To Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Aggregate commitments and liquidity balance, minimum | $ 181,600,000 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Covenant compliance, leverage ratio | 3.75 | |
Maximum | Fifth Amendment To Senior Secured Credit Facility | Debt Instrument, Covenant, Scenario One | ||
Debt Instrument [Line Items] | ||
Covenant compliance, leverage ratio | 2.75 | |
Maximum | Fifth Amendment To Senior Secured Credit Facility | Debt Instrument, Covenant, Scenario Two | ||
Debt Instrument [Line Items] | ||
Covenant compliance, leverage ratio | 2.75 | |
Maximum | Fifth Amendment To Senior Secured Credit Facility | Fiscal Quarter Ending Prior To December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Senior secured leverage ratio | 350% | |
Maximum | Fifth Amendment To Senior Secured Credit Facility | Fiscal Quarters Ending On Or After December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Senior secured leverage ratio | 325% | |
Maximum | Financing Agreement, April 2014 | ||
Debt Instrument [Line Items] | ||
Senior secured leverage ratio, payment restrictions on unsecured debt | 3 | |
Covenant compliance unsecured total leverage ratio | 3.50 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Covenant compliance, interest coverage | 3 | |
Minimum | Fifth Amendment To Senior Secured Credit Facility | Debt Instrument, Covenant, Scenario Two | ||
Debt Instrument [Line Items] | ||
Covenant compliance, leverage ratio | 2.50 |
Debt (Schedule of Maturities of
Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | |||
Future amortization of debt issuance costs | $ 6.9 | $ 9.1 | $ 6.9 |
Long-term Debt, by Maturity [Abstract] | |||
2023 | 55.5 | ||
2024 | 149.2 | ||
2025 | 72.8 | ||
2026 | 297.2 | ||
Total | $ 574.7 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 1.8 | $ 2.9 |
Interest on lease liabilities | 0.1 | 0.2 |
Operating lease cost | 29.7 | 28.4 |
Short-term lease cost | 0.2 | 0 |
Sublease income | (1.9) | (2) |
Total lease cost | 29.9 | 29.5 |
Operating cash flows from finance leases | 0 | 0 |
Operating cash flows from operating leases | 28.1 | 27.9 |
Financing cash flows from finance leases | 2.1 | 3 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 1.1 | 1.4 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 17.6 | $ 74.6 |
Weighted-average remaining lease term — finance leases (years) | 4 years 2 months 12 days | 2 years 3 months 18 days |
Weighted-average remaining lease term — operating leases (years) | 5 years 2 months 12 days | 5 years 8 months 12 days |
Weighted-average discount rate — finance leases (percent) | 5.20% | 4.50% |
Weighted-average discount rate — operating leases (percent) | 5.40% | 5.40% |
Leases (Schedule of Capital Lea
Leases (Schedule of Capital Leased Assets) (Details) - Machinery and Equipment - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Capital Leased Assets [Line Items] | ||
Leased equipment—gross | $ 24.3 | $ 23.8 |
Less: accumulated depreciation | (21.9) | (20.7) |
Leased equipment—net | $ 2.4 | $ 3.1 |
Leases (Schedule of Future Mini
Leases (Schedule of Future MinimumLease Payments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Future Maturities of Operating Leases | ||
2023 | $ 33.1 | |
2024 | 25.7 | |
2025 | 21.4 | |
2026 | 17.1 | |
2027 | 13.9 | |
2028 and thereafter | 20.1 | |
Total minimum payments | 131.3 | |
Less: present value discount | (16.4) | |
Present value of minimum payments | 114.9 | |
Less: current portion | (27.8) | $ (28.1) |
Long-term lease liability | 87.1 | 99.8 |
Future Maturities of Finance Leases | ||
2023 | 0.9 | |
2024 | 0.6 | |
2025 | 0.5 | |
2026 | 0.2 | |
2027 | 0.2 | |
2028 and thereafter | 0.3 | |
Total minimum payments | 2.7 | |
Less: present value discount | (0.3) | |
Present value of minimum payments | 2.4 | |
Less: current portion | (0.8) | (1.8) |
Long-term lease liability | $ 1.6 | $ 1.4 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (13.9) | $ 52.4 |
Foreign | 31.6 | (5.4) |
Earnings before income taxes and equity in earnings of unconsolidated entity | $ 17.7 | $ 47 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Federal: | ||
Current | $ 0.4 | $ 0.9 |
Deferred | 3.3 | 3.2 |
State: | ||
Current | 1.4 | 0 |
Deferred | (0.3) | 0 |
Foreign: | ||
Current | 4.2 | 3.3 |
Deferred | (0.6) | 2.1 |
Total income tax expense | $ 8.4 | $ 9.5 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | $ 3.7 | $ 9.9 |
Loss on the sale of Argentina print business | (5.1) | 0 |
Adjustment to valuation allowances | 3.1 | (17.1) |
Executive compensation limitation | 2.9 | 0 |
Impact from foreign branches | 1.9 | 4.5 |
Adjustment of deferred tax liabilities | 1.5 | 3.5 |
Credits | (1.5) | 0 |
State taxes, net of federal benefit | 1.1 | (0.1) |
Adjustment of uncertain tax positions | (0.3) | 0.2 |
Impairment on investment in Plural | 0 | 6.2 |
Foreign rate differential | 0 | (1.9) |
Other | 1.1 | 4.3 |
Total income tax expense | $ 8.4 | $ 9.5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Adjustment to valuation allowance, net operating losses and credits not expected to be realized, state income tax purposes | $ 2.8 | $ 4.8 |
Adjustment to valuation allowances | $ 3.1 | (17.1) |
Deferred tax liabilities | $ (0.1) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss and other tax carryforwards | $ 108.8 | $ 125.2 |
Goodwill and intangible assets | 24 | 24.4 |
Pension and workers compensation benefits | 23.9 | 21.9 |
Interest limitation | 12.8 | 11.5 |
Accrued liabilities | 9.4 | 12.9 |
Research or experimental expenditures | 8 | 0 |
Accrued compensation | 7.6 | 8.1 |
Allowance for doubtful accounts | 5.9 | 6.5 |
Other | 8.6 | 10.8 |
Total deferred tax assets | 209 | 221.3 |
Valuation allowance | (113.9) | (116.3) |
Net deferred tax assets | 95.1 | 105 |
Deferred tax liabilities: | ||
Property, plant and equipment | (86) | (99.2) |
Other | (6.9) | (5.9) |
Total deferred tax liabilities | (92.9) | (105.1) |
Net deferred tax assets (liabilities) | 2.2 | |
Net deferred tax assets (liabilities) | (0.1) | |
Valuation allowance | 113.9 | 116.3 |
Domestic Tax Authority | ||
Deferred tax assets: | ||
Valuation allowance | (13.2) | |
Deferred tax liabilities: | ||
Net operating loss carryforwards | 3.8 | |
Tax credit carryforward | 9.7 | |
Valuation allowance | 13.2 | |
Foreign Tax Authority | ||
Deferred tax assets: | ||
Valuation allowance | (31.3) | |
Deferred tax liabilities: | ||
Net operating loss carryforwards | 32.6 | |
Net operating loss carryforwards, not subject to expiration | 8.6 | |
Tax credit carryforward | 24.3 | |
Valuation allowance | 31.3 | |
State and Local Jurisdiction | ||
Deferred tax assets: | ||
Valuation allowance | (69.4) | |
Deferred tax liabilities: | ||
Net operating loss carryforwards | 567.9 | |
Net operating loss carryforwards, not subject to expiration | 79.7 | |
Tax credit carryforward | 36.2 | |
Tax credit carryforward, not subject to expiration | 25.5 | |
Valuation allowance | 69.4 | |
Other Noncurrent Liabilities | ||
Deferred tax liabilities: | ||
Net deferred tax assets (liabilities) | (9.3) | (11.9) |
Other Noncurrent Assets | ||
Deferred tax liabilities: | ||
Net deferred tax assets (liabilities) | $ 11.5 | $ 11.8 |
Income Taxes (Income Tax Uncert
Income Taxes (Income Tax Uncertainties) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Document Period End Date | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 11.7 | $ 11.6 |
Additions for tax positions of prior years | 0.2 | 0.5 |
Reductions for tax positions of prior years | (0.3) | (0.3) |
Lapses of applicable statutes of limitations | (0.5) | (0.1) |
Balance at December 31, | 11.1 | 11.7 |
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 8 | |
Interest income | (0.1) | (0.5) |
Refunds | 0 | (0.1) |
Accrued interest related to income tax uncertainties | 0.1 | 0.2 |
Accrued penalties related to income tax uncertainties | 0 | 0 |
Resolution of Audits or Statute Expirations | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Reasonably possible decrease in unrecognized tax benefits | 4.4 | |
Other Current Liabilities | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Accrued interest related to income tax uncertainties | 0 | 0 |
Accrued penalties related to income tax uncertainties | 0 | 0 |
Other Noncurrent Liabilities | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Accrued interest related to income tax uncertainties | 0.1 | 0.2 |
Accrued penalties related to income tax uncertainties | $ 0 | $ 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Interest Rate Swap Information (Details) | 12 Months Ended | |||||
Dec. 14, 2022 USD ($) | Dec. 12, 2022 USD ($) | Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) | Jun. 29, 2020 | Mar. 19, 2019 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Assets | $ 1,701,800,000 | $ 1,890,000,000 | ||||
Liabilities | 1,528,900,000 | 1,753,200,000 | ||||
Amount to be reclassified over next twelve months | 2,700,000 | |||||
Pension benefit plan liability adjustments, net of tax | 3,400,000 | 7,100,000 | ||||
Total impact of swaps to interest expense | $ 1,700,000 | 7,600,000 | ||||
Number of interest rate collar contracts | contract | 2 | |||||
Revolving Credit Facility | Fourth Amendment To Senior Secured Credit Facility | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Interest rate floor, LIBOR | 0.75% | |||||
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash flow hedge ineffectiveness recorded | $ 0 | |||||
Foreign Exchange Contract | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount | $ 7,700,000 | |||||
Foreign currency exchange contracts | contract | 6 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Contract | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Term of contract (years) | 33 months | 45 months | ||||
Notional amount | $ 75,000,000 | $ 75,000,000 | ||||
Floor Rate | 2.25% | 2.09% | ||||
Ceiling Rate | 5% | 5% | ||||
Cash Flow Hedging | March 19, 2019 Interest Rate Swap | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Term of contract (years) | 5 years | |||||
Notional amount | $ 130,000,000 | |||||
Fixed interest rate (percentage) | 2.43% | |||||
Level 2 | Prepaid Expenses and Other Current Assets | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair value of interest rate swap | $ 3,800,000 | 0 | ||||
Level 2 | Other Long Term Liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair value of interest rate swap | 0 | (4,400,000) | ||||
Level 2 | Other Current Liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair value of interest rate swap | 0 | (700,000) | ||||
Level 3 | Fair Value, Recurring | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Assets | 0 | |||||
Liabilities | 0 | |||||
Interest Expense | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Income recognized in interest expense excluded from hedge effectiveness assessments | (9,000,000) | (9,300,000) | ||||
Amounts reclassified out of accumulated other comprehensive loss to interest expense | 3,400,000 | 7,100,000 | ||||
Total impact of swaps to interest expense | (3,900,000) | 5,400,000 | ||||
Interest Expense | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Net interest paid | $ (1,700,000) | $ (7,600,000) |
Employee Retirement Plans (Defi
Employee Retirement Plans (Defined Contribution Plans) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Reclassification of foreign currency translation adjustments | $ 0 | $ 0 |
Quad/Graphics Diversified Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total assets | 1,900,000,000 | |
Defined contribution plan, cost recognized | $ 16,800,000 | $ 13,200,000 |
Employee Retirement Plans (Net
Employee Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Periodic Benefit Cost | ||
Interest cost | $ (9.7) | $ (8.8) |
Net pension income | 12.6 | 14.5 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 37 | 47.5 |
Employer contributions | 1 | 1.6 |
Pension Benefits | ||
Net Periodic Benefit Cost | ||
Interest cost | (9.7) | (8.8) |
Expected return on plan assets | 22.3 | 24.2 |
Net periodic pension income | 12.6 | 15.4 |
Settlement charge | 0 | (0.9) |
Net pension income | 12.6 | $ 14.5 |
Pension Benefits | Nonqualified Plan | ||
Net Periodic Benefit Cost | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | $ 1 |
Employee Retirement Plans (Reco
Employee Retirement Plans (Reconciliation of Projected Benefit Obligation, Fair Value of Plan Assets, and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in benefit obligation | ||
Projected benefit obligation, beginning of year | $ (462.7) | $ (525.6) |
Interest cost | (9.7) | (8.8) |
Actuarial gain (loss) | 86.1 | 23.1 |
Benefits paid | 37 | 47.5 |
Liability benefit from settlement | 0 | 1.1 |
Projected benefit obligation, end of year | (349.3) | (462.7) |
Changes in plan assets | ||
Fair value of plan assets, beginning of year | 443.5 | 469 |
Actual return on plan assets | (94.5) | 20.4 |
Employer contributions | 1 | 1.6 |
Benefits paid | (37) | (47.5) |
Fair value of plan assets, end of year | 313 | 443.5 |
Funded status | ||
Funded status | (36.3) | $ (19.2) |
Net underfunded benefit plan obligations decrease | $ 17.1 | |
Defined benefit plan, actual return on plan assets | (21.76%) |
Employee Retirement Plans (Accu
Employee Retirement Plans (Accumulated Benefit Obligations, Amounts Recognized on Balance Sheets, and Reconciliation of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | ||
Amount arising during the period | $ (30.7) | $ 20.4 |
Impact of pension plan settlement charge included in net loss | 0 | 0.9 |
Pension Benefits | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ||
Current liabilities | (1.4) | (1.6) |
Noncurrent liabilities | (34.9) | (17.6) |
Total amount recognized | (36.3) | (19.2) |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | ||
Accumulated other comprehensive income (loss), before Tax, beginning balance | (16.9) | (38.1) |
Amount arising during the period | (30.7) | 20.3 |
Impact of pension plan settlement charge included in net loss | 0.9 | |
Accumulated other comprehensive income (loss), before Tax, ending balance | (47.6) | (16.9) |
Settlement charge | $ 0 | $ (0.9) |
Employee Retirement Plans (Weig
Employee Retirement Plans (Weighted Average Assumptions) (Details) - Pension Benefits | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, | ||
Discount rate (beginning of year rate) | 2.77% | 2.37% |
Expected long-term return on plan assets | 5.25% | 5.50% |
Weighted-average assumptions used to determine benefit obligations at December 31, | ||
Discount rate (end of year rate) | 5.46% | 2.77% |
Employee Retirement Plans (Esti
Employee Retirement Plans (Estimated Contributions and Benefit Payments) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments | |
2023 | $ 35.4 |
2024 | 33.7 |
2025 | 33 |
2026 | 31.7 |
2027 | 30.8 |
2028 - 2032 | 134.7 |
Thereafter | 50 |
Total | 349.3 |
Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions in next fiscal year | 0 |
Nonqualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions in next fiscal year | $ 1.5 |
Employee Retirement Plans (Plan
Employee Retirement Plans (Plan Assets and Investment Strategy) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 313 | $ 443.5 | $ 469 |
Debt securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation percentage of assets | 75% | ||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Actual plan asset allocations | 77% | 74% | |
Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation percentage of assets | 25% | ||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Actual plan asset allocations | 23% | 26% | |
Redemption Notice Period | JP Morgan Chase Bank Strategic Property Fund | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 30 days | ||
Redemption Notice Period | Pyramis Long Corporate A or Better | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 15 days | ||
Redemption Notice Period | Pyramis Long Duration | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 15 days | ||
Redemption Notice Period | Pyramis 810 Corporate | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 15 days | ||
Redemption Notice Period | Russell 3000 Index NL | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 1 day | ||
Redemption Notice Period | NT Collective Short Term Investment Fund | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Redemption notice period | 1 day | ||
Fair Value, Recurring | Level 1 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 0.6 | $ 3.2 | |
Fair Value, Recurring | Level 2 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 89.6 | 142.8 | |
Fair Value, Recurring | Level 3 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | NAV | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 222.8 | 297.5 | |
Fair Value, Recurring | NAV | JP Morgan Chase Bank Strategic Property Fund | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 11.7 | 12.8 | |
Fair Value, Recurring | NAV | Pyramis Long Corporate A or Better | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 24 | 55.4 | |
Fair Value, Recurring | NAV | Pyramis Long Duration | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 12.4 | 46.9 | |
Fair Value, Recurring | NAV | Pyramis 810 Corporate | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 124.7 | 101.3 | |
Fair Value, Recurring | NAV | Russell 3000 Index NL | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 46 | 81.1 | |
Fair Value, Recurring | NAV | NT Collective Short Term Investment Fund | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 4 | 0 | |
Fair Value, Recurring | Cash and cash equivalents | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0.6 | 3.2 | |
Fair Value, Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0.6 | 3.2 | |
Fair Value, Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Debt securities | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 76.2 | 120.6 | |
Fair Value, Recurring | Debt securities | Level 1 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Debt securities | Level 2 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 76.2 | 120.6 | |
Fair Value, Recurring | Debt securities | Level 3 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Equity securities | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 13.4 | 22.2 | |
Fair Value, Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 13.4 | 22.2 | |
Fair Value, Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Recurring | Pension Plan Assets, Excluding Investments Measured At NAV | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 90.2 | $ 146 |
Employee Retirement Plans (Mult
Employee Retirement Plans (Multiemployer Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Other restructuring charges | $ 32.6 | $ (26.5) |
Multiemployer plans, plan contributions | 6.2 | 6.2 |
Withdrawal liability | 28.3 | |
Other Noncurrent Liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Withdrawal liability | 24.2 | 28.4 |
Accrued Liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Withdrawal liability | $ 4.1 | $ 3.8 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive equity instruments (in shares) | 0.2 | 0.4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||
Net earnings | $ 9.3 | $ 37.8 |
Denominator: | ||
Basic weighted average number of common shares outstanding for all classes of common shares (in shares) | 50.7 | 51.3 |
Plus: effect of dilutive equity incentive instruments (in shares) | 1.8 | 1.7 |
Diluted weighted average number of common shares outstanding for all classes of common shares (in shares) | 52.5 | 53 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.18 | $ 0.74 |
Diluted (in dollars per share) | $ 0.18 | $ 0.71 |
Equity Incentive Programs (Addi
Equity Incentive Programs (Additional Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | $ 6 |
Estimated Future Expense in Year One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | 3.5 |
Estimated Future Expense in Year Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | 2.2 |
Estimated Future Expense in Year Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | $ 0.3 |
Restricted Stock and Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Total future compensation expense | $ 6 |
Restricted Stock and Restricted Stock Units (RSUs) | Estimated Future Expense in Year One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | 3.5 |
Restricted Stock and Restricted Stock Units (RSUs) | Estimated Future Expense in Year Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | 2.2 |
Restricted Stock and Restricted Stock Units (RSUs) | Estimated Future Expense in Year Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total future compensation expense | $ 0.3 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
2020 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of class A stock reserved for issuance | shares | 3,000,000 |
2010 Plan, Now Included In 2020 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of class A stock reserved for issuance | shares | 1,173,520 |
Equity Incentive Programs (Sche
Equity Incentive Programs (Schedule of Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU liability awards expense | $ 0.2 | $ 0 |
Stock-based compensation charges | 6 | 6.2 |
Restricted Stock and Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized | 5.1 | 5.4 |
Deferred Stock Units (DSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized | $ 0.7 | $ 0.8 |
Equity Incentive Programs (Sc_2
Equity Incentive Programs (Schedule of Stock Option Activity Rollforward) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total future compensation expense | $ 6,000,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized | 0 | $ 0 |
Total future compensation expense | $ 0 | |
Shares Under Option | ||
Outstanding, beginning of year, Shares Under Option (in shares) | 56,034 | |
Granted, Shares Under Option (in shares) | 0 | 0 |
Exercised, Shares Under Option (in shares) | 0 | 0 |
Canceled/forfeited/expired, Shares Under Option (in shares) | (56,034) | |
Outstanding, end of year, Shares Under Option (in shares) | 0 | 56,034 |
Weighted Average Exercise Price | ||
Outstanding, beginning of year, Weighted Average Exercise Price (in dollars per share) | $ 14.14 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | |
Canceled/forfeited/expired, Weighted Average Exercise Price (in dollars per share) | 14.14 | |
Outstanding, end of year, Weighted Average Exercise Price (in dollars per share) | $ 0 | $ 14.14 |
Weighted Average Remaining Contractual Term (years) | ||
Options exercisable | 0 years | 0 years |
Aggregate Intrinsic Value (millions) | ||
Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 |
Stock Options | Annual Anniversary Grant Date of Award | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options expiration date | 10 years | |
Stock Options | Vested in first year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vested | 0% | |
Stock Options | Vested in second year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vested | 33.30% | |
Stock Options | Vested in third year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vested | 33.30% | |
Stock Options | Vested in fourth year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vested | 33.30% |
Equity Incentive Programs (Sc_3
Equity Incentive Programs (Schedule of Restricted Stock and Restricted Stock Unit Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted- Average Grant Date Fair Value Per Share | ||
RSU liability awards expense | $ 0.2 | $ 0 |
Restricted Stock and Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of days dividends will be paid after vesting, maximum | 45 days | |
Weighted- Average Grant Date Fair Value Per Share | ||
Compensation expense recognized | $ 5.1 | $ 5.4 |
Restricted Stock | ||
Shares | ||
Nonvested at beginning of year, (in shares) | 3,053,019 | |
Granted, Units (in shares) | 1,693,743 | |
Vested (in shares) | (1,039,567) | |
Forfeited, Units (in shares) | (100,900) | |
Nonvested at end of year, (in shares) | 3,606,295 | 3,053,019 |
Weighted- Average Grant Date Fair Value Per Share | ||
Nonvested, beginning of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 6.99 | |
Granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 3.97 | |
Vested, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 12.31 | |
Forfeited, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 4.22 | |
Nonvested, end of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 4.11 | $ 6.99 |
Nonvested, Weighted- Average Remaining Contractual Term (Years) | 1 year 4 months 24 days | 1 year 2 months 12 days |
Restricted Stock Units (RSUs) | ||
Shares | ||
Nonvested at beginning of year, (in shares) | 222,093 | |
Granted, Units (in shares) | 54,014 | |
Vested (in shares) | (169,489) | |
Forfeited, Units (in shares) | (5,675) | |
Nonvested at end of year, (in shares) | 100,943 | 222,093 |
Weighted- Average Grant Date Fair Value Per Share | ||
Nonvested, beginning of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 10.41 | |
Granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 4 | |
Vested, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 12.33 | |
Forfeited, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 4.68 | |
Nonvested, end of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 4.08 | $ 10.41 |
Nonvested, Weighted- Average Remaining Contractual Term (Years) | 1 year 6 months | 6 months |
Equity instruments other than options, fair value | $ 0.5 |
Equity Incentive Programs (Defe
Equity Incentive Programs (Deferred Stock Unit Activity) (Details) - Deferred Stock Units (DSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Units | ||
Outstanding, Units, beginning balance (in shares) | 687,391 | |
Granted, Units (in shares) | 187,632 | |
Settled, Units (in shares) | (101,829) | |
Outstanding, Units, ending balance (in shares) | 773,194 | 687,391 |
Weighted- Average Grant Date Fair Value Per Share | ||
Outstanding, beginning of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 8.26 | |
Granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 3.89 | |
Settled, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | 7.90 | |
Outstanding, end of year, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ 7.25 | $ 8.26 |
Number of shares each deferred stock unit will convert to upon the earlier of the separation date of the grantee or the second anniversary of the grant date | 1 | |
Compensation expense recognized | $ 0.7 | $ 0.8 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Stock by Class) (Details) - $ / shares shares in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Treasury Stock (shares) | 3.9 | 1.4 |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Authorized Shares | 105 | 105 |
Common Stock Outstanding (shares) | 39.2 | 40.8 |
Treasury Stock (shares) | 3.4 | 0.9 |
Total Issued Shares | 42.6 | 41.7 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Authorized Shares | 80 | 80 |
Common Stock Outstanding (shares) | 13.5 | 13.5 |
Treasury Stock (shares) | 0 | 0 |
Total Issued Shares | 13.5 | 13.5 |
Common Class C | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Authorized Shares | 20 | 20 |
Common Stock Outstanding (shares) | 0 | 0 |
Treasury Stock (shares) | 0.5 | 0.5 |
Total Issued Shares | 0.5 | 0.5 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) vote stock_class $ / shares shares | Dec. 31, 2021 $ / shares shares | Jul. 30, 2018 USD ($) | |
Schedule of Shareholders' Equity Activity [Line Items] | |||
Number of classes of common stock | stock_class | 3 | ||
Preferred stock authorized (in shares) | shares | 500,000 | 500,000 | |
Preferred stock, par value (in dollars per shares) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock issued | shares | 0 | 0 | |
Stock repurchase program, authorized amount (up to) | $ 100 | ||
Common Class A | |||
Schedule of Shareholders' Equity Activity [Line Items] | |||
Number of votes per share | vote | 1 | ||
Number of shares repurchased | shares | 3,093,662 | 0 | |
Remaining authorized repurchase amount | $ 90.1 | ||
Stock repurchased during period, value | 9.9 | ||
Stock repurchased during period, value, including commissions | $ 10 | ||
Average cost per share (in dollars per share) | $ / shares | $ 3.21 | ||
Common Class B | |||
Schedule of Shareholders' Equity Activity [Line Items] | |||
Number of votes per share | vote | 10 | ||
Common Class C | |||
Schedule of Shareholders' Equity Activity [Line Items] | |||
Number of votes per share | vote | 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss By Component) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | $ (161.2) | $ (171.3) |
Other comprehensive income (loss) before reclassifications | 3 | 6.5 |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 29.9 | 3.6 |
Other Comprehensive Income (Loss), Net of Tax | 32.9 | 10.1 |
Accumulated other comprehensive loss, ending balance | (128.3) | (161.2) |
Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | (143.1) | (130.8) |
Other comprehensive income (loss) before reclassifications | 27.2 | (9.6) |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 27.3 | (2.7) |
Other Comprehensive Income (Loss), Net of Tax | 54.5 | (12.3) |
Accumulated other comprehensive loss, ending balance | (88.6) | (143.1) |
Interest Rate Swap Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | (6.7) | (12.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 2.6 | 5.6 |
Other Comprehensive Income (Loss), Net of Tax | 2.6 | 5.6 |
Accumulated other comprehensive loss, ending balance | (4.1) | (6.7) |
Pension Benefit Plan Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | (11.4) | (28.2) |
Other comprehensive income (loss) before reclassifications | (24.2) | 16.1 |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 0 | 0.7 |
Other Comprehensive Income (Loss), Net of Tax | (24.2) | 16.8 |
Accumulated other comprehensive loss, ending balance | $ (35.6) | $ (11.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ 48.4 | $ 59.6 |
Income tax expense | (8.4) | (9.5) |
Amounts reclassified from accumulated other comprehensive loss to net loss | (29.9) | (3.6) |
Reclassification of foreign currency translation adjustments | 27.3 | (2.7) |
Net pension income | (12.6) | (14.5) |
Interest Rate Swap Adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss to net loss | (2.6) | (5.6) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss to net loss | 29.9 | 3.6 |
Reclassification of foreign currency translation adjustments | 27.3 | (2.7) |
Reclassification of foreign currency translation adjustments, net of tax | 27.3 | (2.7) |
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap Adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | 3.4 | 7.1 |
Income tax expense | 0.8 | 1.5 |
Amounts reclassified from accumulated other comprehensive loss to net loss | (2.6) | (5.6) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | 0 | 0.2 |
Amounts reclassified from accumulated other comprehensive loss to net loss | 0 | 0.7 |
Net pension income | 0 | 0.9 |
Pension Benefits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net pension income | $ (12.6) | $ (14.5) |
Segment Information (Summary of
Segment Information (Summary of Segment Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Products | $ 3,217,000,000 | $ 2,960,400,000 | |
Operating Income (Loss) | 53,500,000 | 92,800,000 | |
Depreciation and Amortization | 141,300,000 | 157,300,000 | |
Capital Expenditures | 60,300,000 | 50,000,000 | |
Restructuring, impairment and transaction-related charges | 44,800,000 | 18,900,000 | |
Goodwill impairment | $ 0 | 0 | 0 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | (50,300,000) | (54,200,000) | |
Depreciation and Amortization | 500,000 | 1,100,000 | |
Capital Expenditures | 0 | 0 | |
Restructuring, impairment and transaction-related charges | 2,000,000 | 2,100,000 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 103,800,000 | 147,000,000 | |
Depreciation and Amortization | 140,800,000 | 156,200,000 | |
Capital Expenditures | 60,300,000 | 50,000,000 | |
Restructuring, impairment and transaction-related charges | 42,800,000 | 16,800,000 | |
United States Print and Related Services | |||
Segment Reporting Information [Line Items] | |||
Products | 2,794,700,000 | 2,628,600,000 | |
Operating Income (Loss) | 108,300,000 | 163,100,000 | |
Depreciation and Amortization | 124,700,000 | 138,700,000 | |
Capital Expenditures | 46,400,000 | 46,400,000 | |
Restructuring, impairment and transaction-related charges | 12,100,000 | (14,500,000) | |
International | |||
Segment Reporting Information [Line Items] | |||
Products | 422,300,000 | 331,800,000 | |
Operating Income (Loss) | (4,500,000) | (16,100,000) | |
Depreciation and Amortization | 16,100,000 | 17,500,000 | |
Capital Expenditures | 13,900,000 | 3,600,000 | |
Restructuring, impairment and transaction-related charges | 30,700,000 | 31,300,000 | |
Product | |||
Segment Reporting Information [Line Items] | |||
Products | 2,528,300,000 | 2,247,100,000 | |
Product | Corporate | |||
Segment Reporting Information [Line Items] | |||
Products | 0 | 0 | |
Product | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Products | 2,528,300,000 | 2,247,100,000 | |
Product | United States Print and Related Services | |||
Segment Reporting Information [Line Items] | |||
Products | 2,126,600,000 | 1,935,800,000 | |
Product | International | |||
Segment Reporting Information [Line Items] | |||
Products | 401,700,000 | 311,300,000 | |
Service | |||
Segment Reporting Information [Line Items] | |||
Products | 688,700,000 | 713,300,000 | |
Service | Corporate | |||
Segment Reporting Information [Line Items] | |||
Products | 0 | 0 | |
Service | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Products | 688,700,000 | 713,300,000 | |
Service | United States Print and Related Services | |||
Segment Reporting Information [Line Items] | |||
Products | 668,100,000 | 692,800,000 | |
Service | International | |||
Segment Reporting Information [Line Items] | |||
Products | $ 20,600,000 | $ 20,500,000 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Profit from Segment to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting [Abstract] | ||
Operating income | $ 53.5 | $ 92.8 |
Less: interest expense | 48.4 | 59.6 |
Less: loss on debt extinguishment | 0 | 0.7 |
Earnings before income taxes and equity in earnings of unconsolidated entity | $ 17.7 | $ 47 |
Segment Information (Assets by
Segment Information (Assets by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net pension income | $ (12.6) | $ (14.5) |
Assets | 1,701.8 | 1,890 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,679.7 | 1,712.4 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | 22.1 | 177.6 |
United States Print and Related Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,390.2 | 1,459.7 |
International | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 289.5 | $ 252.7 |
Geographic Area Information (Ne
Geographic Area Information (Net Sales and Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | ||
Net sales | $ 3,217 | $ 2,960.4 |
Property, plant and equipment—net | 672.1 | 727 |
Operating lease right-of-use assets—net | 111.1 | 125.7 |
Other intangible assets—net | 46.9 | 75.3 |
Other long-term assets | 80.8 | 66.5 |
United States | ||
Net sales | ||
Property, plant and equipment—net | 563.6 | 616.8 |
Operating lease right-of-use assets—net | 102.6 | 118.9 |
Other intangible assets—net | 45.2 | 71.9 |
Other long-term assets | 67.8 | 53.1 |
Europe | ||
Net sales | ||
Property, plant and equipment—net | 51.6 | 60.4 |
Operating lease right-of-use assets—net | 2.3 | 3.3 |
Other intangible assets—net | 0.3 | 1.4 |
Other long-term assets | 7.4 | 6 |
Latin America | ||
Net sales | ||
Property, plant and equipment—net | 46.9 | 41.6 |
Operating lease right-of-use assets—net | 3.8 | 0.7 |
Other intangible assets—net | 1.4 | 2 |
Other long-term assets | 5.1 | 6.9 |
Other | ||
Net sales | ||
Property, plant and equipment—net | 10 | 8.2 |
Operating lease right-of-use assets—net | 2.4 | 2.8 |
Other intangible assets—net | 0 | 0 |
Other long-term assets | 0.5 | 0.5 |
Product | ||
Net sales | ||
Net sales | 2,528.3 | 2,247.1 |
Product | United States | ||
Net sales | ||
Net sales | 2,076.9 | 1,892 |
Product | Europe | ||
Net sales | ||
Net sales | 181.3 | 161.3 |
Product | Latin America | ||
Net sales | ||
Net sales | 259.6 | 183 |
Product | Other | ||
Net sales | ||
Net sales | 10.5 | 10.8 |
Service | ||
Net sales | ||
Net sales | 688.7 | 713.3 |
Service | United States | ||
Net sales | ||
Net sales | 668.1 | 692.8 |
Service | Europe | ||
Net sales | ||
Net sales | 20.6 | 20.5 |
Service | Latin America | ||
Net sales | ||
Net sales | 0 | 0 |
Service | Other | ||
Net sales | ||
Net sales | $ 0 | $ 0 |