Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36479 | |
Entity Registrant Name | VERITIV CORPORATION | |
Entity Central Index Key | 0001599489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-3234977 | |
Entity Address, Address Line One | 1000 Abernathy Road NE | |
Entity Address, Address Line Two | Building 400, Suite 1700 | |
Entity Address, City or Town | Atlanta, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 770 | |
Local Phone Number | 391-8200 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | VRTV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,664,599 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales (including sales to related party of $5.6 in 2020) | $ 1,559.3 | $ 1,707.3 |
Cost of products sold (including purchases from related party of $18.8 in 2020) (exclusive of depreciation and amortization shown separately below) | 1,238.1 | 1,359.6 |
Distribution expenses | 101.5 | 123.4 |
Selling and administrative expenses | 166.4 | 203.6 |
Depreciation and amortization | 14.5 | 13.8 |
Restructuring charges, net | 4.3 | 0 |
Operating income (loss) | 34.5 | 6.9 |
Interest expense, net | 5.1 | 7 |
Other (income) expense, net | (1) | (0.1) |
Income (loss) before income taxes | 30.4 | 0 |
Income tax expense (benefit) | 9.1 | 0.4 |
Net income (loss) | $ 21.3 | $ (0.4) |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.34 | $ (0.02) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.28 | $ (0.02) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 15,880 | 16,160 |
Diluted (in shares) | 16,660 | 16,160 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Income Statement [Abstract] | |
Sales to related party | $ 5.6 |
Purchases from related party | $ 18.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 21.3 | $ (0.4) | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (0.3) | (14) | |
Change in fair value of cash flow hedge, net of tax | [1] | 0 | 0 |
Pension liability adjustments, net of tax | [1] | 0 | 0 |
Other comprehensive income (loss) | (0.3) | (14) | |
Total comprehensive income (loss) | $ 21 | $ (14.4) | |
[1] | Amounts shown are net of tax impacts, which were not significant for the periods presented. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 109 | $ 120.6 |
Accounts receivable, less allowances of $41.1 and $41.6, respectively | 853.3 | 849.5 |
Inventories | 493.5 | 465.4 |
Other current assets | 118.2 | 119.5 |
Total current assets | 1,574 | 1,555 |
Property and equipment (net of accumulated depreciation and amortization of $382.4 and $375.9, respectively) | 182.9 | 194.7 |
Goodwill | 99.6 | 99.6 |
Other intangibles, net | 46.3 | 47.4 |
Deferred income tax assets | 56.9 | 60 |
Other non-current assets | 369 | 378.3 |
Total assets | 2,328.7 | 2,335 |
Current liabilities: | ||
Accounts payable | 513.4 | 471.9 |
Accrued payroll and benefits | 50.8 | 80.6 |
Other accrued liabilities | 167.5 | 182.2 |
Current portion of debt | 14.9 | 14.7 |
Total current liabilities | 746.6 | 749.4 |
Long-term debt, net of current portion | 600.7 | 589.1 |
Defined benefit pension obligations | 17.6 | 18.2 |
Other non-current liabilities | 386.4 | 395.2 |
Total liabilities | 1,751.3 | 1,751.9 |
Commitments and contingencies (NoteĀ 12) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 10.0 million shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value, 100.0 million shares authorized; shares issued - 16.8 million and 16.6 million, respectively; shares outstanding - 15.5 million and 15.9 million, respectively | 0.2 | 0.2 |
Additional paid-in capital | 632.8 | 634.9 |
Accumulated earnings (deficit) | 19.9 | (1.4) |
Accumulated other comprehensive loss | (33.8) | (33.5) |
Treasury stock at cost - 1.3 million shares in 2021 and 0.7 million shares in 2020 | (41.7) | (17.1) |
Total shareholders' equity | 577.4 | 583.1 |
Total liabilities and shareholders' equity | $ 2,328.7 | $ 2,335 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Accounts receivable, allowances | $ 41.1 | $ 41.6 |
Property and equipment, accumulated depreciation and amortization | $ 382.4 | $ 375.9 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,800,000 | 16,600,000 |
Common stock, shares outstanding (in shares) | 15,500,000 | 15,900,000 |
Treasury stock, shares (in shares) | 1,300,000 | 700,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income (loss) | $ 21.3 | $ (0.4) |
Depreciation and amortization | 14.5 | 13.8 |
Amortization and write-off of deferred financing fees | 0.3 | 0.6 |
Net losses (gains) on disposition of assets and sale of a business | (2.2) | 0.1 |
Provision for expected credit losses | 0.9 | 4.4 |
Deferred income tax provision (benefit) | 3.1 | 5.2 |
Stock-based compensation | 1.2 | 9.4 |
Other non-cash items, net | 0.8 | 2.6 |
Changes in operating assets and liabilities | ||
Accounts receivable and related party receivable | (10.3) | (19.6) |
Inventories | (30.7) | 38.5 |
Other current assets | 1.7 | 1.2 |
Accounts payable and related party payable | 54.3 | 50.9 |
Accrued payroll and benefits | (29.8) | (13.2) |
Other accrued liabilities | (10.9) | (8.8) |
Other | (1) | 0.1 |
Net cash provided by (used for) operating activities | 13.2 | 84.8 |
Investing activities | ||
Property and equipment additions | (6.3) | (8.9) |
Proceeds from asset sales and sale of a business | 8 | 0.7 |
Net cash provided by (used for) investing activities | 1.7 | (8.2) |
Financing activities | ||
Change in book overdrafts | (9.2) | (24.7) |
Borrowings of long-term debt | 1,392.8 | 1,479.8 |
Repayments of long-term debt | (1,378.9) | (1,483.6) |
Payments under right-of-use finance leases | (3.3) | (2.9) |
Purchase of treasury stock | (24.6) | (3.5) |
Payments under Tax Receivable Agreement | 0 | (0.3) |
Payments under other contingent consideration | 0 | (3.5) |
Other | (2.9) | (0.5) |
Net cash provided by (used for) financing activities | (26.1) | (39.2) |
Effect of exchange rate changes on cash | (0.4) | (0.8) |
Net change in cash and cash equivalents | (11.6) | 36.6 |
Cash and cash equivalents at beginning of period | 120.6 | 38 |
Cash and cash equivalents at end of period | 109 | 74.6 |
Supplemental cash flow information | ||
Cash paid for income taxes, net of refunds | 11.2 | 0.6 |
Cash paid for interest | 4.6 | 6.2 |
Non-cash investing and financing activities | ||
Non-cash additions to property and equipment for right-of-use finance leases | 0.2 | 11.2 |
Non-cash additions to other non-current assets for right-of-use operating leases | $ 11.3 | $ 10.8 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Issued | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Accumulated Earnings (Deficit)Cumulative Effect, Period of Adoption, Adjustment | AOCL | [1] | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 16.4 | 0.3 | |||||||
Beginning balance at Dec. 31, 2019 | $ 536.2 | $ (0.3) | $ 0.2 | $ 618 | $ (35.3) | $ (0.3) | $ (33.1) | $ (13.6) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (0.4) | (0.4) | |||||||
Other comprehensive income (loss) | (14) | (14) | |||||||
Stock-based compensation | 9.4 | 9.4 | |||||||
Issuance of common stock, net of stock received for minimum tax withholdings (in shares) | 0.1 | ||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | (0.6) | $ 0 | (0.6) | ||||||
Treasury stock purchases (in shares) | (0.4) | ||||||||
Treasury stock purchases | (3.5) | $ (3.5) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 16.5 | 0.7 | |||||||
Ending balance at Mar. 31, 2020 | 526.8 | $ 0.2 | 626.8 | (36) | (47.1) | $ (17.1) | |||
Beginning balance (in shares) at Dec. 31, 2020 | 16.6 | 0.7 | |||||||
Beginning balance at Dec. 31, 2020 | 583.1 | $ 0.2 | 634.9 | (1.4) | (33.5) | $ (17.1) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 21.3 | 21.3 | |||||||
Other comprehensive income (loss) | (0.3) | (0.3) | |||||||
Stock-based compensation | 1.2 | 1.2 | |||||||
Issuance of common stock, net of stock received for minimum tax withholdings (in shares) | 0.2 | ||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | (3.3) | $ 0 | (3.3) | ||||||
Treasury stock purchases (in shares) | (0.6) | ||||||||
Treasury stock purchases | (24.6) | $ (24.6) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 16.8 | 1.3 | |||||||
Ending balance at Mar. 31, 2021 | $ 577.4 | $ 0.2 | $ 632.8 | $ 19.9 | $ (33.8) | $ (41.7) | |||
[1] | Accumulated other comprehensive loss. |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Veritiv Corporation ("Veritiv" or the "Company") is a North American business-to-business full-service provider of value-added packaging products and services, as well as facility solutions, print and publishing products and services. Additionally, Veritiv provides logistics and supply chain management solutions to its customers. Veritiv was established in 2014, following the merger (the "Merger") of International Paper Company's xpedx distribution solutions business ("xpedx") and UWW Holdings, Inc. ("UWWH"), the parent company of Unisource Worldwide, Inc. ("Unisource"). Veritiv operates from approximately 125 distribution centers primarily throughout the United States ("U.S."), Canada and Mexico. Basis of Presentation and Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete set of annual audited financial statements. The accompanying unaudited financial information should be read in conjunction with the Consolidated Financial Statements and Notes contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2020. In the opinion of management, all adjustments, including normal recurring accruals and other adjustments, considered necessary for a fair presentation of the interim financial information have been included. The operating results for the interim periods are not necessarily indicative of results for the full year, particularly in light of the novel coronavirus ("COVID-19") pandemic and its effects on the domestic and global economies. These financial statements include all of the Company's subsidiaries. All significant intercompany transactions between Veritiv's businesses have been eliminated. Use of Estimates The preparation of unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and certain financial statement disclosures. Estimates and assumptions are used for, but not limited to, revenue recognition, right-of-use ("ROU") asset and liability valuations, accounts and notes receivable valuations, inventory valuation, employee benefit plans, income tax contingency accruals and valuation allowances, multi-employer pension plan ("MEPP") withdrawal liabilities, contingency accruals and goodwill and other intangible asset valuations. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Primarily beginning in April 2020, unfavorable impacts from the COVID-19 pandemic have had a negative impact on the Company's financial results. As a result of the COVID-19 pandemic, the Company could continue to experience impacts including, but not limited to, charges from potential adjustments of the carrying amount of accounts and notes receivables and inventory, asset impairment charges, including goodwill, and deferred tax valuation allowances. The extent to which the COVID-19 pandemic impacts the Company's business, results of operations, access to sources of liquidity and financial condition will depend on future developments. These developments, which are highly uncertain and cannot be predicted, include, but are not limited to, the duration, spread and severity of the COVID-19 pandemic, the effects of the COVID-19 pandemic on the Company's employees, customers, suppliers and vendors and the remedial actions and stimulus measures adopted by local and federal governments, the availability, adoption and effectiveness of a vaccine and to what extent normal economic and operating conditions can resume and be sustained. Even after the COVID-19 pandemic has subsided, the Company may experience an impact to its business as a result of any economic recession, downturn or volatility that has occurred or may occur in the future. Estimates are revised as additional information becomes available. Accounting Pronouncements Recently Adopted Accounting Standards Effective January 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740). The standard removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. The adoption did not materially impact the Company's financial statements and disclosures. Recently Issued Accounting Standards Not Yet Adopted ASU 2020-04 , Reference Rate Reform (Topic 848) - This standard provides temporary optional expedients and exceptions to accounting guidance for certain contract modifications and hedging arrangements to ease financial reporting burdens as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. The guidance is available for prospective application upon its issuance and can generally be applied to contract modifications and hedging relationships entered into March 12, 2020 through December 31, 2022. The Company has an interest rate cap arrangement and long-term debt for which existing payments are based on LIBOR. The Company is currently evaluating the timing of adoption and the related impact on its consolidated financial statements. Currently, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. |
Revenue Recognition and Credit
Revenue Recognition and Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Credit Losses | 2. REVENUE RECOGNITION AND CREDIT LOSSES Veritiv applies the five-step model to assess its contracts with customers. The Company's revenue is reported as net sales and is measured as the determinable transaction price, net of any variable consideration (e.g., sales incentives and rights to return product) and any taxes collected from customers and remitted to governmental authorities. Certain revenues are derived from shipments which are made directly from a manufacturer to a Veritiv customer. The Company is considered to be a principal to these transactions. Revenues from these sales are reported on a gross basis on the Condensed Consolidated Statements of Operations and have historically represented approximately 35% of Veritiv's total net sales. As a normal business practice, Veritiv does not enter into contracts that require more than one year to complete or that contain significant financing components. The Company considers handling and delivery as activities to fulfill its performance obligations. Billings for third-party freight are accounted for as net sales and handling and delivery costs are accounted for as distribution expenses. The Company has established credit and collection processes whereby collection assessments are performed and expected credit losses are recognized. Veritiv enters into incentive programs with certain of its customers, which are generally based on sales to those same customers. Veritiv follows the expected value method when estimating its retrospective incentives and records the estimated amount as a reduction to gross sales when revenue is recognized. Estimates of the variable consideration are based primarily on contract terms, current customer forecasts as well as historical experience. Customer product returns are estimated based on historical experience and the identification of specific events necessitating an adjustment. The estimated return value is recognized as a reduction of gross sales and related cost of products sold. The estimated inventory returns value is recognized as part of inventories, while the estimated customer refund liability is recognized as part of other accrued liabilities on the Condensed Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, estimated inventory returns were not significant. A customer contract liability will arise when Veritiv has received payment for goods and services, but has not yet transferred the items to a customer and satisfied its performance obligations. Veritiv records a customer contract liability for performance obligations outstanding related to payments received in advance for customer deposits on equipment sales and other sale arrangements requiring prepayment, which are included in accounts payable on the Condensed Consolidated Balance Sheets. Veritiv expects to satisfy these remaining performance obligations and recognize the related revenues upon delivery of the goods and services to the customer's designated location within 12 months following receipt of the payment. Most equipment sales deposits are held for approximately 90 days and other sale arrangements requiring prepayment initially cover a 60 - 90 day period, but can be renewed by the customer. See the table below for a summary of the changes to the customer contract liabilities for the three months ended March 31, 2021 and 2020: Customer Contract Liabilities (in millions) 2021 2020 Balance at January 1, $ 12.2 $ 11.7 Payments received 14.2 11.0 Revenue recognized from beginning balance (7.3) (9.0) Revenue recognized from current year receipts (7.1) (2.8) Balance at March 31, $ 12.0 $ 10.9 Historically, the Company's ten largest customers have generated approximately 10% of its consolidated annual net sales. Veritiv's principal markets are concentrated primarily across North America with net sales in the U.S., Canada and Mexico of approximately 87%, 10% and 2%, respectively. Veritiv evaluated the nature of the products and services provided to its customers as well as the nature of the customer and the geographical distribution of its customer base and determined that the best representative level of disaggregated revenue is the product category basis. The following is a brief description of the Company's four reportable segments, organized by major product category. This segment structure is consistent with the way the Chief Operating Decision Maker, who is Veritiv's Chief Executive Officer, makes operating decisions and manages the growth and profitability of the Company's business. The Company also has a Corporate & Other category, which includes certain assets and costs not primarily attributable to any of the reportable segments, as well as the Veritiv logistics solutions business which provides transportation and warehousing solutions. ā¢ Packaging ā The Packaging segment provides custom and standard packaging solutions for customers based in North America and in key global markets. This segment services customers with a full spectrum of packaging product materials within the fiber-based, flexible and rigid categories. The business is strategically focused on higher growth industry sectors including manufacturing, food processing and service, fulfillment and internet retail, as well as niche sectors based on industry and product expertise. This segment also provides supply chain solutions, structural and graphic packaging design and engineering, automation, workflow and equipment services and kitting. ā¢ Facility Solutions ā The Facility Solutions segment sources and sells cleaning, break-room and other supplies such as towels, tissues, commercial cleaning chemicals, personal protective equipment and safety supplies, wipers, can liners, soaps and sanitizers, dispensers, sanitary maintenance supplies and equipment, hazard supplies, and shampoos and amenities primarily in North America. Additionally, the Company offers total cost of ownership solutions with re-merchandising, budgeting and compliance reporting, and inventory management. ā¢ Print ā The Print segment sells and distributes commercial printing, writing, copying, digital, specialty products and graphics consumables primarily in North America. Veritiv's broad geographic platform of operations coupled with the breadth of paper and graphics products, including exclusive private brand offerings, provides a foundation to service national, regional and local customers across North America. ā¢ Publishing ā The Publishing segment sells and distributes coated and uncoated commercial printing papers to publishers, retailers, converters, printers and specialty businesses for use in magazines, catalogs, books, directories, gaming, couponing, retail inserts and direct mail primarily in the U.S. This segment also provides print management, procurement and supply chain management solutions to simplify paper and print procurement processes for its customers. See Note 13, Segment and Other Information , for the disaggregation of revenue and other information related to the Company's reportable segments and Corporate & Other. Allowance for Credit Losses The components of the accounts receivable allowances were as follows: (in millions) March 31, 2021 December 31, 2020 Allowance for credit losses $ 30.7 $ 31.4 Other allowances (1) 10.4 10.2 Total accounts receivable allowances $ 41.1 $ 41.6 (1) Includes amounts reserved for credit memos, customer discounts, customer short pays and other miscellaneous items. Below is a rollforward of the Companyās allowance for credit losses for the three months ended March 31, 2021: Packaging and Facility Solutions Print - High Risk Print - Medium/Low Risk (in millions) U.S. Canada U.S. Canada U.S. Canada Publishing (1) Rest of world Corporate & Other (1) Total Ending balance, December 31, 2020 $ 14.4 $ 0.5 $ 10.2 $ 0.7 $ 2.2 $ 0.0 $ 1.6 $ 1.0 $ 0.8 $ 31.4 Add / (Deduct): Provision for expected credit losses 1.9 0.1 (0.8) 0.0 0.3 0.0 (0.7) 0.0 0.1 0.9 Write-offs charged against the allowance (1.3) 0.0 (0.2) 0.0 0.0 ā ā 0.0 (0.1) (1.6) Recoveries of amounts previously written off 0.0 ā 0.0 ā 0.0 ā ā ā ā 0.0 Other adjustments (2) ā 0.0 1.4 0.0 (1.4) 0.0 ā 0.0 ā 0.0 Ending balance, March 31, 2021 $ 15.0 $ 0.6 $ 10.6 $ 0.7 $ 1.1 $ 0.0 $ 0.9 $ 1.0 $ 0.8 $ 30.7 (1) Publishing and Corporate & Other have only U.S. Operations. (2) Other adjustments represent amounts reserved for foreign currency translation adjustments and reserves for certain customer accounts where revenue is not recognized because collectability is not probable, and may include accounts receivable allowances recorded in connection with acquisitions. The Company, under certain circumstances, enters into note receivable agreements with customers. Expected credit losses are recognized when collectability is uncertain; these losses are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2021 and 2020, the Company recognized $0.0 million and $2.3 million, respectively, in the provision for expected credit losses related to these notes receivable. At March 31, 2021 and December 31, 2020, the Company held $2.0 million and $2.2 million, respectively, in notes receivable within other current assets on the Condensed Consolidated Balance Sheets. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 3. LEASES The Company leases certain property and equipment used for operations to limit its exposure to risks related to ownership. The major leased asset categories include: real estate, delivery equipment, material handling equipment and computer and office equipment. As of March 31, 2021, the Company operated from approximately 125 distribution centers of which approximately 115 were leased. These facilities are strategically located throughout the U.S., Canada and Mexico in order to efficiently serve the customer base in the surrounding areas while also facilitating expedited delivery services for special orders. The Company also leases various office spaces for corporate and sales functions. The components of lease expense were as follows: (in millions) Three Months Ended Lease Classification Financial Statement Classification 2021 2020 Short-term lease expense (1) Operating expenses $ 1.0 $ 0.9 Operating lease expense (2) Operating expenses $ 25.6 $ 27.1 Finance lease expense: Amortization of right-of-use assets Depreciation and amortization $ 3.7 $ 3.5 Interest expense Interest expense, net 0.7 0.8 Total finance lease expense $ 4.4 $ 4.3 Total Lease Cost $ 31.0 $ 32.3 (1) Short-term lease expense is comprised of expenses related to leases with a term of twelve months or less, which includes expenses related to month-to- month leases. (2) Sublease income and variable lease expense are not included in the above table as the amounts were not significant for the periods presented. Supplemental balance sheets and other information were as follows: (in millions, except weighted-average data) March 31, 2021 December 31, 2020 Lease Classification Financial Statement Classification Operating Leases: Operating lease right-of-use assets Other non-current assets $ 342.4 $ 351.7 Operating lease obligations - current Other accrued liabilities $ 83.2 $ 81.9 Operating lease obligations - non-current Other non-current liabilities 296.4 307.4 Total operating lease obligations $ 379.6 $ 389.3 Weighted-average remaining lease term in years 5.9 6.1 Weighted-average discount rate 4.7 % 4.7 % Finance Leases: Finance lease right-of-use assets Property and equipment $ 73.4 $ 76.6 Finance lease obligations - current Current portion of debt $ 13.3 $ 13.4 Finance lease obligations - non-current Long-term debt, net of current portion 66.2 68.9 Total finance lease obligations $ 79.5 $ 82.3 Weighted-average remaining lease term in years 7.0 7.1 Weighted-average discount rate 3.7 % 3.7 % Cash paid for amounts included in the measurement of lease liabilities was as follows: (in millions) Three Months Ended March 31, Lease Classification Financial Statement Classification 2021 2020 Operating Leases: Operating cash flows from operating leases Operating activities $ 26.5 $ 27.8 Finance Leases: Operating cash flows from finance leases Operating activities $ 0.7 $ 0.8 Financing cash flows from finance leases Financing activities 3.3 2.9 Lease Commitments Future minimum lease payments at March 31, 2021 were as follows: (in millions) Finance Leases Operating Leases (1) 2021 (excluding the three months ended March 31, 2021) $ 12.0 $ 75.5 2022 15.6 87.1 2023 13.3 67.1 2024 11.5 53.7 2025 10.7 42.8 2026 8.0 38.0 Thereafter 19.9 73.8 Total future minimum lease payments 91.0 438.0 Amount representing interest (11.5) (58.4) Total future minimum lease payments, net of interest $ 79.5 $ 379.6 (1) Future sublease income of $2.0 million is excluded from the operating leases amount in the table above. Total future minimum lease payments at March 31, 2021 for finance and operating leases, including the amount representing interest, are comprised of $455.9 million for real estate leases and $73.1 million for non-real estate leases. At March 31, 2021, the Company had committed to additional future obligations of approximately $24.3 million for real estate operating leases that have not yet commenced and therefore are not included in the table above. These leases will commence within the next nine months with an average lease term of approximately nine years. |
Leases | 3. LEASES The Company leases certain property and equipment used for operations to limit its exposure to risks related to ownership. The major leased asset categories include: real estate, delivery equipment, material handling equipment and computer and office equipment. As of March 31, 2021, the Company operated from approximately 125 distribution centers of which approximately 115 were leased. These facilities are strategically located throughout the U.S., Canada and Mexico in order to efficiently serve the customer base in the surrounding areas while also facilitating expedited delivery services for special orders. The Company also leases various office spaces for corporate and sales functions. The components of lease expense were as follows: (in millions) Three Months Ended Lease Classification Financial Statement Classification 2021 2020 Short-term lease expense (1) Operating expenses $ 1.0 $ 0.9 Operating lease expense (2) Operating expenses $ 25.6 $ 27.1 Finance lease expense: Amortization of right-of-use assets Depreciation and amortization $ 3.7 $ 3.5 Interest expense Interest expense, net 0.7 0.8 Total finance lease expense $ 4.4 $ 4.3 Total Lease Cost $ 31.0 $ 32.3 (1) Short-term lease expense is comprised of expenses related to leases with a term of twelve months or less, which includes expenses related to month-to- month leases. (2) Sublease income and variable lease expense are not included in the above table as the amounts were not significant for the periods presented. Supplemental balance sheets and other information were as follows: (in millions, except weighted-average data) March 31, 2021 December 31, 2020 Lease Classification Financial Statement Classification Operating Leases: Operating lease right-of-use assets Other non-current assets $ 342.4 $ 351.7 Operating lease obligations - current Other accrued liabilities $ 83.2 $ 81.9 Operating lease obligations - non-current Other non-current liabilities 296.4 307.4 Total operating lease obligations $ 379.6 $ 389.3 Weighted-average remaining lease term in years 5.9 6.1 Weighted-average discount rate 4.7 % 4.7 % Finance Leases: Finance lease right-of-use assets Property and equipment $ 73.4 $ 76.6 Finance lease obligations - current Current portion of debt $ 13.3 $ 13.4 Finance lease obligations - non-current Long-term debt, net of current portion 66.2 68.9 Total finance lease obligations $ 79.5 $ 82.3 Weighted-average remaining lease term in years 7.0 7.1 Weighted-average discount rate 3.7 % 3.7 % Cash paid for amounts included in the measurement of lease liabilities was as follows: (in millions) Three Months Ended March 31, Lease Classification Financial Statement Classification 2021 2020 Operating Leases: Operating cash flows from operating leases Operating activities $ 26.5 $ 27.8 Finance Leases: Operating cash flows from finance leases Operating activities $ 0.7 $ 0.8 Financing cash flows from finance leases Financing activities 3.3 2.9 Lease Commitments Future minimum lease payments at March 31, 2021 were as follows: (in millions) Finance Leases Operating Leases (1) 2021 (excluding the three months ended March 31, 2021) $ 12.0 $ 75.5 2022 15.6 87.1 2023 13.3 67.1 2024 11.5 53.7 2025 10.7 42.8 2026 8.0 38.0 Thereafter 19.9 73.8 Total future minimum lease payments 91.0 438.0 Amount representing interest (11.5) (58.4) Total future minimum lease payments, net of interest $ 79.5 $ 379.6 (1) Future sublease income of $2.0 million is excluded from the operating leases amount in the table above. Total future minimum lease payments at March 31, 2021 for finance and operating leases, including the amount representing interest, are comprised of $455.9 million for real estate leases and $73.1 million for non-real estate leases. At March 31, 2021, the Company had committed to additional future obligations of approximately $24.3 million for real estate operating leases that have not yet commenced and therefore are not included in the table above. These leases will commence within the next nine months with an average lease term of approximately nine years. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 4. RESTRUCTURING CHARGES 2020 Restructuring Plan During the second quarter of 2020, the Company initiated a restructuring plan in response to the impact of the COVID-19 pandemic on its business operations and the ongoing secular changes in its Print and Publishing segments. During the fourth quarter of 2020, the Company expanded the initial plan to further align its cost structure with ongoing business needs as the Company executes on its stated corporate strategy. The initial and expansion activities are collectively referred to as the "2020 Restructuring Plan." The 2020 Restructuring Plan includes (i) a reduction of the Company's U.S. salaried workforce by approximately 15% across all business segments and corporate functions, (ii) the closure of certain warehouse facilities and retail stores, (iii) adjustments to various compensation plans, (iv) repositioning of inventory to expand the Company's service radius and (v) other actions. The Company currently estimates it will incur total restructuring charges of between $70 million and $87 million in connection with the 2020 Restructuring Plan. These costs will include the following activities (i) employee termination and other one-time compensation costs, (ii) real estate exit costs, (iii) certain inventory related costs and (iv) other exit costs. Through March 31, 2021, the Company has incurred approximately $56.5 million in costs and charges. Initial charges were incurred and recorded in June 2020. The Company expects to substantially complete the 2020 Restructuring Plan by the end of 2021. Other direct costs reported in the table below include facility closing costs and other incidental costs associated with the development, communication, administration and implementation of these initiatives. The following is a summary of the Company's 2020 Restructuring Plan liability activity for the three months ended March 31, 2021 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals): (in millions) Severance and Related Costs Other Direct Costs Total Balance at December 31, 2020 $ 15.4 $ 6.9 $ 22.3 Costs incurred (0.3) 2.7 2.4 Payments (5.2) (1.6) (6.8) Balance at March 31, 2021 $ 9.9 $ 8.0 $ 17.9 In addition to the costs incurred in the table above, during the three months ended March 31, 2021, the Company expensed $1.9 million of Other Direct Costs, which was prepaid during the fourth quarter of 2020. Additionally, the Company holds other restructuring liabilities related to the previous restructuring plans that as of March 31, 2021, totaled $23.3 million, of which $19.7 million was related to MEPP withdrawal obligations that will be paid-out over an approximate 20-year period. These other liabilities as of December 31, 2020, totaled $24.0 million, of which $20.0 million was related to MEPP withdrawal obligations. See Note 13, Segment and Other Information, |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 5. DEBT The Company's debt obligations were as follows: (in millions) March 31, 2021 December 31, 2020 Asset-Based Lending Facility (the "ABL Facility") $ 534.5 $ 520.2 Commercial card program 1.6 1.3 Finance leases 79.5 82.3 Total debt 615.6 603.8 Less: current portion of debt (14.9) (14.7) Long-term debt, net of current portion $ 600.7 $ 589.1 ABL Facility On April 9, 2020, the Company amended its ABL Facility to extend the maturity date to April 9, 2025, reduced the aggregate commitments from $1.4 billion to $1.1 billion and adjusted the pricing grid for applicable interest rates. All other significant terms remained substantially the same. The Company recognized a one-time charge of $0.6 million to interest expense, net, on the Condensed Consolidated Statement of Operations, for the write-off of a portion of the previously deferred financing costs associated with lenders in the ABL Facility that exited the amended ABL Facility. In addition, the Company incurred and deferred $3.4 million of new financing costs associated with this transaction, reflected in other non-current assets on the Condensed Consolidated Balance Sheet, which will be amortized to interest expense on a straight-line basis over the amended term of the ABL Facility. Availability under the ABL Facility is determined based upon a monthly borrowing base calculation which includes eligible customer receivables and inventory, less outstanding borrowings, letters of credit and certain designated reserves. As of March 31, 2021, the available additional borrowing capacity under the ABL Facility was approximately $343.8 million. As of March 31, 2021, the Company held $12.1 million in outstanding letters of credit. The ABL Facility has a springing minimum fixed charge coverage ratio of at least 1.00 to 1.00 on a trailing four-quarter basis, which will be tested only when specified availability is less than the limits outlined under the ABL Facility. At March 31, 2021, the above test was not applicable and based on information available as of the date of this report it is not expected to be applicable in the next 12 months. Commercial Card Program The Company has a commercial purchasing card program that is used for business purpose purchasing and must be paid in-full monthly. At March 31, 2021, the card carried a maximum credit limit of $37.5 million. At March 31, 2021 and December 31, 2020, $1.6 million and $1.3 million, respectively, was outstanding on the commercial card. The net change in the outstanding balance is classified as a financing activity on the Condensed Consolidated Statements of Cash Flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES The Company calculated the expense for income taxes during the three months ended March 31, 2021, by applying an estimate of the annual effective tax rate ("AETR") for the full fiscal year to "ordinary" income or loss (pre-tax income excluding unusual or infrequently occurring discrete items) for the reporting period. For the three months ended March 31, 2020, due to the heightened uncertainty surrounding the COVID-19 pandemic, Veritiv was unable to reasonably estimate its AETR and used its actual year-to-date effective tax rate to calculate income tax expense. The following table presents the expense (benefit) for income taxes and the effective tax rates for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, (in millions) 2021 2020 Income (loss) before income taxes $ 30.4 $ 0.0 Income tax expense (benefit) 9.1 0.4 Effective tax rate 29.9 % * * not meaningful The difference between the Company's effective tax rates for the three months ended March 31, 2021 and 2020, and the U.S. statutory tax rate of 21.0% primarily relates to state income taxes (net of federal income tax benefit), non-deductible expenses, tax expense for stock compensation vesting, Global Intangible Low-Taxed Income ("GILTI"), and the Company's pre-tax book income (loss) by jurisdiction. In addition, Veritiv recognized the tax-effect of the Coronavirus Aid, Relief, and Economic Security Act (the āCARES Actā) in the quarter ended March 31, 2020, and recorded an estimated $2.1 million benefit, primarily related to the carryback of net operating loss (āNOLā or āNOLsā) generated in 2019 to prior years in which the U.S. statutory tax rate was 35%. The CARES Act was signed into law on March 27, 2020 and makes significant economic stimulus changes and additional changes to the U.S. tax code, including, but not limited to, allowing the carryback of NOLs occurring in 2018, 2019, and 2020 to the prior five years and eliminating the taxable income limitation, changes interest expense limitation, includes a technical correction for qualified improvement property depreciation and provides additional employee retention credits. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. RELATED PARTY TRANSACTIONS On March 3, 2021, Veritiv announced that its Board of Directors authorized a $50.0 million share repurchase program (the "2021 Share Repurchase Program"). Executing within the 2021 Share Repurchase Program, on March 9, 2021, Veritiv entered into a Share Repurchase Agreement with UWW Holdings, LLC (the "UWWH Stockholder"), pursuant to which the Company agreed to repurchase (the āShare Repurchaseā) an aggregate of 553,536 shares of its common stock owned by the UWWH Stockholder for an aggregate purchase price of $23.2 million. The Share Repurchase closed on March 12, 2021 and the Company funded the Share Repurchase with cash on hand. Concurrently with the closing of the Share Repurchase, the UWWH Stockholder sold the remainder of its shares of Veritiv common stock to an unrelated third party. Agreements with the UWWH Stockholder prior to the Share Repurchase In January 2020, in connection with the Tax Receivable Agreement ("TRA") executed at the time of the Merger, Veritiv paid $0.3 million in principal and interest to the UWWH Stockholder for the utilization of pre-merger NOLs in its 2018 federal and state tax returns. In December 2020, the Company and the UWWH Stockholder agreed to settle the TRA. The Company paid the UWWH Stockholder a total of $12.0 million in settlement of all past and future liabilities that would have been owed under the TRA and the parties agreed to a mutual release of claims under the TRA. See Note 9, Fair Value Measurements , for additional information regarding the TRA. On November 19, 2020, the UWWH Stockholder sold 1.40 million shares of Veritiv common stock in an underwritten public offering. The Company did not sell or repurchase any shares and did not receive any of the proceeds. Following completion of such sale, which reduced the UWWH Stockholder's ownership below 10% of Veritiv's outstanding common stock, Georgia-Pacific, as joint owner of the UWWH Stockholder, is no longer treated as a related party. The Company considers its stockholders that own more than 10.0% of its outstanding common stock to be related parties as defined within ASC 850, Related Party Disclosures. Transactions with Georgia-Pacific Veritiv purchases certain inventory items from, and sells certain inventory items to, Georgia-Pacific in the normal course of business. The following table summarizes the financial impact of the transactions with Georgia-Pacific during the prior year period when it was considered a related party: Three Months Ended March 31, (in millions) 2020 Sales to Georgia-Pacific, reflected in net sales $ 5.6 Purchases of inventory from Georgia-Pacific, recognized in cost of products sold 18.8 |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans | 8. DEFINED BENEFIT PLANS Veritiv does not maintain any active defined benefit plans for its non-union employees. Veritiv maintains a defined benefit pension plan in the U.S. for employees covered by certain collectively bargained agreements. Veritiv also assumed responsibility for Unisource's defined benefit plans, which include frozen cash balance accounts for certain former Unisource employees. The components of net periodic benefit cost (credit) other than the service cost component are included in other (income) expense, net on the Condensed Consolidated Statements of Operations. Amounts are generally amortized from AOCL over the expected future working lifetime of active plan participants. Total net periodic benefit cost (credit) associated with these plans is summarized below: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (in millions) U.S. Canada U.S. Canada Components of net periodic benefit cost (credit): Service cost $ 0.6 $ 0.1 $ 0.6 $ 0.1 Interest cost $ 0.3 $ 0.5 $ 0.4 $ 0.6 Expected return on plan assets (1.1) (1.0) (1.0) (0.9) Total other components $ (0.8) $ (0.5) $ (0.6) $ (0.3) Net periodic benefit cost (credit) $ (0.2) $ (0.4) $ 0.0 $ (0.2) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. FAIR VALUE MEASUREMENTS At March 31, 2021 and December 31, 2020, the carrying amounts of cash and cash equivalents, receivables, payables, other components of other current assets and other accrued liabilities, and the short-term debt associated with the commercial card program approximate their fair values due to the short maturity of these items. Cash and cash equivalents may include highly-liquid investments with original maturities to the Company of three months or less that are readily convertible into known amounts of cash. Borrowings under the ABL Facility are at variable market interest rates, and accordingly, the carrying amount approximates fair value, which is a Level 2 measurement. The fair value of the debt-related interest rate cap was derived from a discounted cash flow analysis based on the terms of the agreement and Level 2 data for the forward interest rate curve adjusted for the Company's credit risk and was not significant for the periods presented in this report. See Note 5, Debt , for additional information regarding the Company's ABL Facility and other obligations. At March 31, 2021 and December 31, 2020, the Company had assets held for sale of $1.4 million and $0.4 million, respectively. These assets are included in other current assets on the Condensed Consolidated Balance Sheets at the lower of their carrying value or fair value at March 31, 2021 and December 31, 2020, respectively. At the time of the Merger, the Company recorded a $59.4 million contingent liability associated with the TRA at fair value using a discounted cash flow model. The contingent liability was remeasured at fair value at each reporting period-end with the change in fair value recognized in other (income) expense, net on the Condensed Consolidated Statements of Operations. In December 2020, the Company and the UWWH Stockholder agreed to settle the TRA. See Note 7, Related Party Transactions , for additional information regarding the TRA. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 10. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share for Veritiv common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the respective periods. Diluted earnings per share is similarly calculated, except that the denominator is increased to include the number of additional common shares that would have been outstanding during those periods if the dilutive potential common shares had been issued, using the treasury stock method, except where the inclusion of such common shares would have an antidilutive impact. A summary of the numerators and denominators used in the basic and diluted earnings (loss) per share calculations is as follows: Three Months Ended (in millions, except per share data) 2021 2020 Numerator: Net income (loss) $ 21.3 $ (0.4) Denominator: Weighted-average shares outstanding ā basic 15.88 16.16 Dilutive effect of stock-based awards 0.78 ā Weighted-average shares outstanding ā diluted 16.66 16.16 Earnings (loss) per share: Basic earnings (loss) per share $ 1.34 $ (0.02) Diluted earnings (loss) per share $ 1.28 $ (0.02) Antidilutive stock-based awards excluded from computation of diluted earnings per share ("EPS") 0.11 1.28 Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met 0.07 0.32 In accordance with the Company's 2014 Omnibus Incentive Plan, as amended and restated as of March 8, 2017, shares of the Company's common stock were issued to plan participants whose Restricted Stock Units and/or Performance Condition Share Units vested during those periods. The net share issuance is included on the Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2021 and 2020. For additional information related to these plans refer to the Company's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020. See the table below for information related to these transactions. (in millions) 2021 2020 Three months ended March 31, Shares issued 0.3 0.2 Shares recovered for minimum tax withholding (0.1) (0.1) Net shares issued 0.2 0.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss ("AOCL") | 11. ACCUMULATED OTHER COMPREHENSIVE LOSS ("AOCL") Comprehensive income (loss) is reported on the Condensed Consolidated Statements of Comprehensive Income (Loss) and consists of net income (loss) and other gains and losses affecting shareholders' equity that, under U.S. GAAP, are excluded from net income (loss). The following table provides the components of AOCL at March 31, 2021 (amounts are shown net of their related income tax effect, if any): (in millions) Foreign currency translation adjustments Retirement liabilities Interest rate cap AOCL Balance at December 31, 2020 $ (24.2) $ (9.1) $ (0.2) $ (33.5) Unrealized net gains (losses) arising during the period (0.3) 0.0 0.0 (0.3) Net current period other comprehensive income (loss) (0.3) 0.0 0.0 (0.3) Balance at March 31, 2021 $ (24.5) $ (9.1) $ (0.2) $ (33.8) The following table provides the components of AOCL at March 31, 2020 (amounts are shown net of their related income tax effect, if any): (in millions) Foreign currency translation adjustments Retirement liabilities Interest rate cap AOCL Balance at December 31, 2019 $ (26.6) $ (6.2) $ (0.3) $ (33.1) Unrealized net gains (losses) arising during the period (14.0) 0.0 0.0 (14.0) Net current period other comprehensive income (loss) (14.0) 0.0 0.0 (14.0) Balance at March 31, 2020 $ (40.6) $ (6.2) $ (0.3) $ (47.1) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company is involved in various lawsuits, claims and regulatory and administrative proceedings arising out of its business relating to general commercial and contractual matters, governmental regulations, intellectual property rights, labor and employment matters, tax and other actions. Although the ultimate outcome of any legal proceeding or investigation cannot be predicted with certainty, based on present information, including the Company's assessment of the merits of the particular claim, the Company does not expect that any asserted or unasserted legal claims or proceedings, individually or in the aggregate, will have a material adverse effect on its results of operations, financial condition or cash flows. Western Pennsylvania Teamsters and Employers Pension Fund During the second quarter of 2019, in the course of negotiations for a collective bargaining agreement, Veritiv negotiated a partial withdrawal from the Western Pennsylvania Teamsters and Employers Pension Fund (the "Western Pennsylvania Fund"), a MEPP related to its Warrendale, Pennsylvania location, and recognized an estimated partial withdrawal liability of $6.5 million, which was unchanged as of March 31, 2021. During the first quarter of 2020, Veritiv negotiated the complete withdrawal from the Western Pennsylvania Fund related to the second bargaining unit at its Warrendale, Pennsylvania location and recognized an estimated complete withdrawal liability of $7.1 million, which was unchanged as of March 31, 2021. The withdrawal charge was recorded in distribution expenses as it was not related to a restructuring activity. The Company records an estimated undiscounted charge when it becomes probable that it has incurred a withdrawal liability. Final charges for MEPP withdrawals are not known until the plans issue their respective determinations. As a result, these estimates may increase or decrease depending upon the final determinations. As of March 31, 2021, the Company has not yet received the determination letters for the partial and subsequent full withdrawal from the Western Pennsylvania Fund. The Company expects that payments will occur over an approximate 20-year period, which could run consecutively. |
Segment and Other Information
Segment and Other Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Other Information | 13. SEGMENT AND OTHER INFORMATION Veritiv's business is organized under four reportable segments: Packaging, Facility Solutions, Print, and Publishing and Print Management ("Publishing"). The following tables present net sales, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, restructuring charges, net, integration and acquisition expenses and other similar charges including any severance costs, costs associated with warehouse and office openings or closings, consolidation, and relocation and other business optimization expenses, stock-based compensation expense, changes in the LIFO reserve, non-restructuring asset impairment charges, non-restructuring severance charges, non-restructuring pension charges, net, fair value adjustments related to contingent liabilities assumed in mergers and acquisitions and certain other adjustments), which is the metric management uses to assess operating performance of the segments, and certain other measures for each of the reportable segments and Corporate & Other for the periods presented: (in millions) Packaging Facility Solutions Print Publishing Total Reportable Segments Corporate & Other Total Three Months Ended March 31, 2021 Net sales $ 854.6 $ 206.1 $ 323.2 $ 148.1 $ 1,532.0 $ 27.3 $ 1,559.3 Adjusted EBITDA 78.0 11.5 12.3 5.1 106.9 (47.4) Depreciation and amortization 6.1 2.0 1.6 0.0 9.7 4.8 14.5 Restructuring charges, net 2.7 0.5 1.6 0.0 4.8 (0.5) 4.3 Three Months Ended March 31, 2020 Net sales $ 802.6 $ 259.7 $ 452.2 $ 166.7 $ 1,681.2 $ 26.1 $ 1,707.3 Adjusted EBITDA 59.6 9.0 11.2 3.6 83.4 (47.2) Depreciation and amortization 5.3 1.9 2.1 0.0 9.3 4.5 13.8 The table below presents a reconciliation of net income (loss) as reflected on the Condensed Consolidated Statements of Operations to Adjusted EBITDA for the reportable segments: Three Months Ended (in millions) 2021 2020 Net income (loss) $ 21.3 $ (0.4) Interest expense, net 5.1 7.0 Income tax expense (benefit) 9.1 0.4 Depreciation and amortization 14.5 13.8 Restructuring charges, net 4.3 ā Facility closure charges, including (gain) loss from asset disposition 0.3 1.4 Stock-based compensation 1.2 9.4 LIFO reserve (decrease) increase 5.1 (5.9) Non-restructuring severance charges 0.8 1.7 Non-restructuring pension charges, net ā 7.1 Fair value adjustment on TRA contingent liability ā (0.7) Fair value adjustment on contingent consideration liability ā 1.0 Other (2.2) 1.4 Adjustment for Corporate & Other 47.4 47.2 Adjusted EBITDA for reportable segments $ 106.9 $ 83.4 On March 31, 2021, the Company sold its Print segment's Rollsource business, which provides specialized converting of commercial printing paper for distribution to the business-forms, direct-mail and digital-printing industries. The Company received net cash proceeds of $7.5 million, which was immediately used to pay outstanding revolving loan borrowings under the ABL Facility. The net proceeds are reported as proceeds from asset sales and sale of a business in the investing activities section of the Condensed Consolidated Statements of Cash Flows. The Company recognized a gain of $2.4 million on the sale, which is included in selling and administrative expenses on the Condensed Consolidated Statements of Operations. The divestiture is not considered a strategic shift that will have a major effect on the Company's operations or financial results; therefore it is not reported as discontinued operations. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of ConsolidationThe accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete set of annual audited financial statements. The accompanying unaudited financial information should be read in conjunction with the Consolidated Financial Statements and Notes contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2020. In the opinion of management, all adjustments, including normal recurring accruals and other adjustments, considered necessary for a fair presentation of the interim financial information have been included. The operating results for the interim periods are not necessarily indicative of results for the full year, particularly in light of the novel coronavirus ("COVID-19") pandemic and its effects on the domestic and global economies. These financial statements include all of the Company's subsidiaries. All significant intercompany transactions between Veritiv's businesses have been eliminated. |
Use of Estimates | Use of Estimates The preparation of unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and certain financial statement disclosures. Estimates and assumptions are used for, but not limited to, revenue recognition, right-of-use ("ROU") asset and liability valuations, accounts and notes receivable valuations, inventory valuation, employee benefit plans, income tax contingency accruals and valuation allowances, multi-employer pension plan ("MEPP") withdrawal liabilities, contingency accruals and goodwill and other intangible asset valuations. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from these estimates and assumptions. |
Accounting Pronouncements and Recently Issued Not Yet Adopted and Adopted Accounting Standards | Accounting Pronouncements Recently Adopted Accounting Standards Effective January 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740). The standard removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. The adoption did not materially impact the Company's financial statements and disclosures. Recently Issued Accounting Standards Not Yet Adopted ASU 2020-04 , Reference Rate Reform (Topic 848) - This standard provides temporary optional expedients and exceptions to accounting guidance for certain contract modifications and hedging arrangements to ease financial reporting burdens as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. The guidance is available for prospective application upon its issuance and can generally be applied to contract modifications and hedging relationships entered into March 12, 2020 through December 31, 2022. The Company has an interest rate cap arrangement and long-term debt for which existing payments are based on LIBOR. The Company is currently evaluating the timing of adoption and the related impact on its consolidated financial statements. Currently, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. |
Revenue Recognition and Credi_2
Revenue Recognition and Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Customer Contract Liabilities | See the table below for a summary of the changes to the customer contract liabilities for the three months ended March 31, 2021 and 2020: Customer Contract Liabilities (in millions) 2021 2020 Balance at January 1, $ 12.2 $ 11.7 Payments received 14.2 11.0 Revenue recognized from beginning balance (7.3) (9.0) Revenue recognized from current year receipts (7.1) (2.8) Balance at March 31, $ 12.0 $ 10.9 |
Schedule of Allowance for Doubtful Accounts | The components of the accounts receivable allowances were as follows: (in millions) March 31, 2021 December 31, 2020 Allowance for credit losses $ 30.7 $ 31.4 Other allowances (1) 10.4 10.2 Total accounts receivable allowances $ 41.1 $ 41.6 (1) Includes amounts reserved for credit memos, customer discounts, customer short pays and other miscellaneous items. |
Schedule of Allowance for Credit Losses | Below is a rollforward of the Companyās allowance for credit losses for the three months ended March 31, 2021: Packaging and Facility Solutions Print - High Risk Print - Medium/Low Risk (in millions) U.S. Canada U.S. Canada U.S. Canada Publishing (1) Rest of world Corporate & Other (1) Total Ending balance, December 31, 2020 $ 14.4 $ 0.5 $ 10.2 $ 0.7 $ 2.2 $ 0.0 $ 1.6 $ 1.0 $ 0.8 $ 31.4 Add / (Deduct): Provision for expected credit losses 1.9 0.1 (0.8) 0.0 0.3 0.0 (0.7) 0.0 0.1 0.9 Write-offs charged against the allowance (1.3) 0.0 (0.2) 0.0 0.0 ā ā 0.0 (0.1) (1.6) Recoveries of amounts previously written off 0.0 ā 0.0 ā 0.0 ā ā ā ā 0.0 Other adjustments (2) ā 0.0 1.4 0.0 (1.4) 0.0 ā 0.0 ā 0.0 Ending balance, March 31, 2021 $ 15.0 $ 0.6 $ 10.6 $ 0.7 $ 1.1 $ 0.0 $ 0.9 $ 1.0 $ 0.8 $ 30.7 (1) Publishing and Corporate & Other have only U.S. Operations. (2) Other adjustments represent amounts reserved for foreign currency translation adjustments and reserves for certain customer accounts where revenue is not recognized because collectability is not probable, and may include accounts receivable allowances recorded in connection with acquisitions. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Cash Flows | The components of lease expense were as follows: (in millions) Three Months Ended Lease Classification Financial Statement Classification 2021 2020 Short-term lease expense (1) Operating expenses $ 1.0 $ 0.9 Operating lease expense (2) Operating expenses $ 25.6 $ 27.1 Finance lease expense: Amortization of right-of-use assets Depreciation and amortization $ 3.7 $ 3.5 Interest expense Interest expense, net 0.7 0.8 Total finance lease expense $ 4.4 $ 4.3 Total Lease Cost $ 31.0 $ 32.3 (1) Short-term lease expense is comprised of expenses related to leases with a term of twelve months or less, which includes expenses related to month-to- month leases. (2) Sublease income and variable lease expense are not included in the above table as the amounts were not significant for the periods presented. Cash paid for amounts included in the measurement of lease liabilities was as follows: (in millions) Three Months Ended March 31, Lease Classification Financial Statement Classification 2021 2020 Operating Leases: Operating cash flows from operating leases Operating activities $ 26.5 $ 27.8 Finance Leases: Operating cash flows from finance leases Operating activities $ 0.7 $ 0.8 Financing cash flows from finance leases Financing activities 3.3 2.9 |
Schedule of Supplemental Balance Sheet and Other Information | Supplemental balance sheets and other information were as follows: (in millions, except weighted-average data) March 31, 2021 December 31, 2020 Lease Classification Financial Statement Classification Operating Leases: Operating lease right-of-use assets Other non-current assets $ 342.4 $ 351.7 Operating lease obligations - current Other accrued liabilities $ 83.2 $ 81.9 Operating lease obligations - non-current Other non-current liabilities 296.4 307.4 Total operating lease obligations $ 379.6 $ 389.3 Weighted-average remaining lease term in years 5.9 6.1 Weighted-average discount rate 4.7 % 4.7 % Finance Leases: Finance lease right-of-use assets Property and equipment $ 73.4 $ 76.6 Finance lease obligations - current Current portion of debt $ 13.3 $ 13.4 Finance lease obligations - non-current Long-term debt, net of current portion 66.2 68.9 Total finance lease obligations $ 79.5 $ 82.3 Weighted-average remaining lease term in years 7.0 7.1 Weighted-average discount rate 3.7 % 3.7 % |
Schedule of Finance Lease Maturity | Future minimum lease payments at March 31, 2021 were as follows: (in millions) Finance Leases Operating Leases (1) 2021 (excluding the three months ended March 31, 2021) $ 12.0 $ 75.5 2022 15.6 87.1 2023 13.3 67.1 2024 11.5 53.7 2025 10.7 42.8 2026 8.0 38.0 Thereafter 19.9 73.8 Total future minimum lease payments 91.0 438.0 Amount representing interest (11.5) (58.4) Total future minimum lease payments, net of interest $ 79.5 $ 379.6 (1) Future sublease income of $2.0 million is excluded from the operating leases amount in the table above. |
Schedule of Operating Lease Maturity | Future minimum lease payments at March 31, 2021 were as follows: (in millions) Finance Leases Operating Leases (1) 2021 (excluding the three months ended March 31, 2021) $ 12.0 $ 75.5 2022 15.6 87.1 2023 13.3 67.1 2024 11.5 53.7 2025 10.7 42.8 2026 8.0 38.0 Thereafter 19.9 73.8 Total future minimum lease payments 91.0 438.0 Amount representing interest (11.5) (58.4) Total future minimum lease payments, net of interest $ 79.5 $ 379.6 (1) Future sublease income of $2.0 million is excluded from the operating leases amount in the table above. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Company's Restructuring Activity | The following is a summary of the Company's 2020 Restructuring Plan liability activity for the three months ended March 31, 2021 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals): (in millions) Severance and Related Costs Other Direct Costs Total Balance at December 31, 2020 $ 15.4 $ 6.9 $ 22.3 Costs incurred (0.3) 2.7 2.4 Payments (5.2) (1.6) (6.8) Balance at March 31, 2021 $ 9.9 $ 8.0 $ 17.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Obligations | The Company's debt obligations were as follows: (in millions) March 31, 2021 December 31, 2020 Asset-Based Lending Facility (the "ABL Facility") $ 534.5 $ 520.2 Commercial card program 1.6 1.3 Finance leases 79.5 82.3 Total debt 615.6 603.8 Less: current portion of debt (14.9) (14.7) Long-term debt, net of current portion $ 600.7 $ 589.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes and the Effective Tax Rates | The following table presents the expense (benefit) for income taxes and the effective tax rates for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, (in millions) 2021 2020 Income (loss) before income taxes $ 30.4 $ 0.0 Income tax expense (benefit) 9.1 0.4 Effective tax rate 29.9 % * * not meaningful |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summarized Financial Impact of Transactions with Related Party | The following table summarizes the financial impact of the transactions with Georgia-Pacific during the prior year period when it was considered a related party: Three Months Ended March 31, (in millions) 2020 Sales to Georgia-Pacific, reflected in net sales $ 5.6 Purchases of inventory from Georgia-Pacific, recognized in cost of products sold 18.8 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Costs and Credits | Total net periodic benefit cost (credit) associated with these plans is summarized below: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (in millions) U.S. Canada U.S. Canada Components of net periodic benefit cost (credit): Service cost $ 0.6 $ 0.1 $ 0.6 $ 0.1 Interest cost $ 0.3 $ 0.5 $ 0.4 $ 0.6 Expected return on plan assets (1.1) (1.0) (1.0) (0.9) Total other components $ (0.8) $ (0.5) $ (0.6) $ (0.3) Net periodic benefit cost (credit) $ (0.2) $ (0.4) $ 0.0 $ (0.2) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of the Numerators and Denominators Used in the Basic and Diluted Earnings Per Share Calculation | A summary of the numerators and denominators used in the basic and diluted earnings (loss) per share calculations is as follows: Three Months Ended (in millions, except per share data) 2021 2020 Numerator: Net income (loss) $ 21.3 $ (0.4) Denominator: Weighted-average shares outstanding ā basic 15.88 16.16 Dilutive effect of stock-based awards 0.78 ā Weighted-average shares outstanding ā diluted 16.66 16.16 Earnings (loss) per share: Basic earnings (loss) per share $ 1.34 $ (0.02) Diluted earnings (loss) per share $ 1.28 $ (0.02) Antidilutive stock-based awards excluded from computation of diluted earnings per share ("EPS") 0.11 1.28 Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met 0.07 0.32 |
Schedule of Incentive Plan Shares Issued | In accordance with the Company's 2014 Omnibus Incentive Plan, as amended and restated as of March 8, 2017, shares of the Company's common stock were issued to plan participants whose Restricted Stock Units and/or Performance Condition Share Units vested during those periods. The net share issuance is included on the Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2021 and 2020. For additional information related to these plans refer to the Company's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020. See the table below for information related to these transactions. (in millions) 2021 2020 Three months ended March 31, Shares issued 0.3 0.2 Shares recovered for minimum tax withholding (0.1) (0.1) Net shares issued 0.2 0.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table provides the components of AOCL at March 31, 2021 (amounts are shown net of their related income tax effect, if any): (in millions) Foreign currency translation adjustments Retirement liabilities Interest rate cap AOCL Balance at December 31, 2020 $ (24.2) $ (9.1) $ (0.2) $ (33.5) Unrealized net gains (losses) arising during the period (0.3) 0.0 0.0 (0.3) Net current period other comprehensive income (loss) (0.3) 0.0 0.0 (0.3) Balance at March 31, 2021 $ (24.5) $ (9.1) $ (0.2) $ (33.8) The following table provides the components of AOCL at March 31, 2020 (amounts are shown net of their related income tax effect, if any): (in millions) Foreign currency translation adjustments Retirement liabilities Interest rate cap AOCL Balance at December 31, 2019 $ (26.6) $ (6.2) $ (0.3) $ (33.1) Unrealized net gains (losses) arising during the period (14.0) 0.0 0.0 (14.0) Net current period other comprehensive income (loss) (14.0) 0.0 0.0 (14.0) Balance at March 31, 2020 $ (40.6) $ (6.2) $ (0.3) $ (47.1) |
Segment and Other Information (
Segment and Other Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | The following tables present net sales, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, restructuring charges, net, integration and acquisition expenses and other similar charges including any severance costs, costs associated with warehouse and office openings or closings, consolidation, and relocation and other business optimization expenses, stock-based compensation expense, changes in the LIFO reserve, non-restructuring asset impairment charges, non-restructuring severance charges, non-restructuring pension charges, net, fair value adjustments related to contingent liabilities assumed in mergers and acquisitions and certain other adjustments), which is the metric management uses to assess operating performance of the segments, and certain other measures for each of the reportable segments and Corporate & Other for the periods presented: (in millions) Packaging Facility Solutions Print Publishing Total Reportable Segments Corporate & Other Total Three Months Ended March 31, 2021 Net sales $ 854.6 $ 206.1 $ 323.2 $ 148.1 $ 1,532.0 $ 27.3 $ 1,559.3 Adjusted EBITDA 78.0 11.5 12.3 5.1 106.9 (47.4) Depreciation and amortization 6.1 2.0 1.6 0.0 9.7 4.8 14.5 Restructuring charges, net 2.7 0.5 1.6 0.0 4.8 (0.5) 4.3 Three Months Ended March 31, 2020 Net sales $ 802.6 $ 259.7 $ 452.2 $ 166.7 $ 1,681.2 $ 26.1 $ 1,707.3 Adjusted EBITDA 59.6 9.0 11.2 3.6 83.4 (47.2) Depreciation and amortization 5.3 1.9 2.1 0.0 9.3 4.5 13.8 |
Reconciliation of Income Before Income Taxes to Total Adjusted EBITDA | The table below presents a reconciliation of net income (loss) as reflected on the Condensed Consolidated Statements of Operations to Adjusted EBITDA for the reportable segments: Three Months Ended (in millions) 2021 2020 Net income (loss) $ 21.3 $ (0.4) Interest expense, net 5.1 7.0 Income tax expense (benefit) 9.1 0.4 Depreciation and amortization 14.5 13.8 Restructuring charges, net 4.3 ā Facility closure charges, including (gain) loss from asset disposition 0.3 1.4 Stock-based compensation 1.2 9.4 LIFO reserve (decrease) increase 5.1 (5.9) Non-restructuring severance charges 0.8 1.7 Non-restructuring pension charges, net ā 7.1 Fair value adjustment on TRA contingent liability ā (0.7) Fair value adjustment on contingent consideration liability ā 1.0 Other (2.2) 1.4 Adjustment for Corporate & Other 47.4 47.2 Adjusted EBITDA for reportable segments $ 106.9 $ 83.4 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies - Narrative (Details) | Mar. 31, 2021distributionCenter |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of distribution centers | 125 |
Revenue Recognition and Credi_3
Revenue Recognition and Credit Losses - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Concentration Risk [Line Items] | |||
Equipment sales deposits, approximate holding period | 90 days | ||
Number of reportable segments | segment | 4 | ||
Notes receivable, provision for expected credit losses | $ 0 | $ 2.3 | |
Notes receivable | $ 2 | $ 2.2 | |
Revenue from Contract with Customer Benchmark | Sales Channel, Directly to Consumer | |||
Concentration Risk [Line Items] | |||
Principal market concentration percent | 35.00% | ||
Revenue Benchmark | Customer Concentration Risk | Ten largest customers | |||
Concentration Risk [Line Items] | |||
Principal market concentration percent | 10.00% | ||
Revenue Benchmark | Geographic Concentration Risk | U.S. | |||
Concentration Risk [Line Items] | |||
Principal market concentration percent | 87.00% | ||
Revenue Benchmark | Geographic Concentration Risk | Canada | |||
Concentration Risk [Line Items] | |||
Principal market concentration percent | 10.00% | ||
Revenue Benchmark | Geographic Concentration Risk | Mexico | |||
Concentration Risk [Line Items] | |||
Principal market concentration percent | 2.00% | ||
Minimum | |||
Concentration Risk [Line Items] | |||
Bill-and-hold arrangements initial coverage period | 60 days | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Bill-and-hold arrangements initial coverage period | 90 days |
Revenue Recognition and Credi_4
Revenue Recognition and Credit Losses - Remaining Performance Obligation (Details) | Mar. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation satisfaction period | 12 months |
Revenue Recognition and Credi_5
Revenue Recognition and Credit Losses - Schedule of Customer Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 12.2 | $ 11.7 |
Payments received | 14.2 | 11 |
Revenue recognized from beginning balance | (7.3) | (9) |
Revenue recognized from current year receipts | (7.1) | (2.8) |
Ending balance | $ 12 | $ 10.9 |
Revenue Recognition and Credi_6
Revenue Recognition and Credit Losses - Schedule of Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Allowance for credit losses | $ 30.7 | $ 31.4 |
Other allowances | 10.4 | 10.2 |
Total accounts receivable allowances | $ 41.1 | $ 41.6 |
Revenue Recognition and Credi_7
Revenue Recognition and Credit Losses - Rollforward of Credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | $ 31.4 |
Provision for expected credit losses | 0.9 |
Write-offs charged against the allowance | (1.6) |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 30.7 |
U.S. | Corporate & Other | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 0.8 |
Provision for expected credit losses | 0.1 |
Write-offs charged against the allowance | (0.1) |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 0.8 |
U.S. | Packaging and Facility Solutions | Operating Segments | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 14.4 |
Provision for expected credit losses | 1.9 |
Write-offs charged against the allowance | (1.3) |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 15 |
U.S. | Print | Operating Segments | Risk Level, High | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 10.2 |
Provision for expected credit losses | (0.8) |
Write-offs charged against the allowance | (0.2) |
Recoveries of amounts previously written off | 0 |
Other adjustments | 1.4 |
Ending balance, March 31, 2021 | 10.6 |
U.S. | Print | Operating Segments | Risk Level, Medium / Low | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 2.2 |
Provision for expected credit losses | 0.3 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | (1.4) |
Ending balance, March 31, 2021 | 1.1 |
U.S. | Publishing | Operating Segments | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 1.6 |
Provision for expected credit losses | (0.7) |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 0.9 |
Canada | Packaging and Facility Solutions | Operating Segments | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 0.5 |
Provision for expected credit losses | 0.1 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 0.6 |
Canada | Print | Operating Segments | Risk Level, High | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 0.7 |
Provision for expected credit losses | 0 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 0.7 |
Canada | Print | Operating Segments | Risk Level, Medium / Low | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 0 |
Provision for expected credit losses | 0 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | 0 |
Rest of world | Operating Segments | |
Loss Contingencies [Line Items] | |
Ending balance, December 31, 2020 | 1 |
Provision for expected credit losses | 0 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Other adjustments | 0 |
Ending balance, March 31, 2021 | $ 1 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)distributionCenter | |
Lessee, Lease, Description [Line Items] | |
Number of distribution centers | distributionCenter | 125 |
Number of leased distribution centers | distributionCenter | 115 |
Real Estate | |
Lessee, Lease, Description [Line Items] | |
Finance and operating lease payments due | $ 455.9 |
Operating lease not yet commenced | $ 24.3 |
Commencement period, leases not yet commenced | 9 months |
Lease not commenced, lease term | 9 years |
Non-Real Estate | |
Lessee, Lease, Description [Line Items] | |
Finance and operating lease payments due | $ 73.1 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Short-term lease expense | $ 1 | $ 0.9 |
Operating lease expense | 25.6 | 27.1 |
Finance lease expense: | ||
Amortization of right-of-use assets | 3.7 | 3.5 |
Interest expense | 0.7 | 0.8 |
Total finance lease expense | 4.4 | 4.3 |
Total Lease Cost | $ 31 | $ 32.3 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet and Other Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment (net of accumulated depreciation and amortization of $382.4 and $375.9, respectively) | Property and equipment (net of accumulated depreciation and amortization of $382.4 and $375.9, respectively) |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of debt | Current portion of debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, net of current portion | Long-term debt, net of current portion |
Operating Leases: | ||
Operating lease right-of-use assets | $ 342.4 | $ 351.7 |
Operating lease obligations - current | 83.2 | 81.9 |
Operating lease obligations - non-current | 296.4 | 307.4 |
Total operating lease obligations | $ 379.6 | $ 389.3 |
Weighted-average remaining lease term in years | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted-average discount rate | 4.70% | 4.70% |
Finance Leases: | ||
Finance lease right-of-use assets | $ 73.4 | $ 76.6 |
Finance lease obligations - current | 13.3 | 13.4 |
Finance lease obligations - non-current | 66.2 | 68.9 |
Total finance lease obligations | $ 79.5 | $ 82.3 |
Weighted-average remaining lease term in years | 7 years | 7 years 1 month 6 days |
Weighted-average discount rate | 3.70% | 3.70% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating cash flows from operating leases | ||
Operating cash flows from operating leases | $ 26.5 | $ 27.8 |
Finance Leases: | ||
Operating cash flows from finance leases | 0.7 | 0.8 |
Financing cash flows from finance leases | $ 3.3 | $ 2.9 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating and Finance Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2021 (excluding the three months ended March 31, 2021) | $ 12 | |
2022 | 15.6 | |
2023 | 13.3 | |
2024 | 11.5 | |
2025 | 10.7 | |
2026 | 8 | |
Thereafter | 19.9 | |
Total future minimum lease payments | 91 | |
Amount representing interest | (11.5) | |
Total future minimum lease payments, net of interest | 79.5 | $ 82.3 |
Operating Leases | ||
2021 (excluding the three months ended March 31, 2021) | 75.5 | |
2022 | 87.1 | |
2023 | 67.1 | |
2024 | 53.7 | |
2025 | 42.8 | |
2026 | 38 | |
Thereafter | 73.8 | |
Total future minimum lease payments | 438 | |
Amount representing interest | (58.4) | |
Total future minimum lease payments, net of interest | 379.6 | $ 389.3 |
Future sublease income | $ 2 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)years | Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Multi-employer pension plans, settlement term | years | 20 | |
2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent reduction in salaried workforce | 15.00% | |
Restructuring costs and charges incurred to date | $ 56.5 | |
Restructuring prepayments expensed during the period | 1.9 | |
2020 Restructuring Plan | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 70 | |
2020 Restructuring Plan | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 87 | |
Veritiv Restructuring Plan | Restructuring Costs, Excluding Non-Cash Restructuring Gains (Losses) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 23.3 | $ 24 |
Pension plan withdrawal liability | $ 19.7 | $ 20 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Changes in Restructuring Liability - 2020 Restructuring Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 4.3 | $ 0 |
Severance and Related Costs | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at December 31, 2020 | 15.4 | |
Costs incurred | (0.3) | |
Payments | (5.2) | |
Balance at March 31, 2021 | 9.9 | |
Other Direct Costs | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at December 31, 2020 | 6.9 | |
Costs incurred | 2.7 | |
Payments | (1.6) | |
Balance at March 31, 2021 | 8 | |
Total | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at December 31, 2020 | 22.3 | |
Costs incurred | 2.4 | |
Payments | (6.8) | |
Balance at March 31, 2021 | $ 17.9 |
Debt - Long-Term Debt Obligatio
Debt - Long-Term Debt Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Commercial card program | $ 14.9 | $ 14.7 |
Finance leases | 79.5 | 82.3 |
Total debt | 615.6 | 603.8 |
Less: current portion of debt | (14.9) | (14.7) |
Long-term debt, net of current portion | 600.7 | 589.1 |
Line of Credit | Asset-Based Lending Facility | ||
Debt Instrument [Line Items] | ||
Asset-Based Lending Facility (the "ABL Facility") | $ 534.5 | $ 520.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 09, 2020 | Apr. 08, 2020 | |
Line of Credit Facility [Line Items] | |||||
Commercial card, maximum credit limit | $ 37,500,000 | ||||
Commercial card program | $ 14,900,000 | $ 14,700,000 | |||
Asset-Based Lending Facility | |||||
Line of Credit Facility [Line Items] | |||||
Write off of deferred financing costs | $ 600,000 | ||||
Deferred financing costs incurred | $ 3,400,000 | ||||
Minimum fixed coverage ratio | 100.00% | ||||
Line of Credit | Asset-Based Lending Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 1,100,000,000 | $ 1,400,000,000 | |||
Remaining borrowing capacity | $ 343,800,000 | ||||
Outstanding letters of credit | 12,100,000 | ||||
Commercial Card Program | |||||
Line of Credit Facility [Line Items] | |||||
Commercial card program | $ 1,600,000 | $ 1,300,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ 30.4 | $ 0 |
Income tax expense (benefit) | $ 9.1 | 0.4 |
Effective tax rate | 29.90% | |
Estimated tax benefit (expense) resulting from CARES Act | $ 2.1 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Mar. 19, 2021 | Nov. 19, 2020 | Dec. 31, 2020 | Jan. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 03, 2021 |
Related Party Transaction [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||||
Stock repurchased, aggregate purchase price | $ 24,600,000 | $ 3,500,000 | |||||
UWW Holdings, LLC | Public Stock Offering | |||||||
Related Party Transaction [Line Items] | |||||||
Shares sold in offering (in shares) | 1,400,000 | ||||||
UWW Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Shares repurchased (in shares) | 553,536 | ||||||
Stock repurchased, aggregate purchase price | $ 23,200,000 | ||||||
UWW Holdings, LLC | UWW Holdings, LLC | Tax Receivable Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to UWWF for utilization of pre-merger net operating losses in federal and state tax returns | $ 300,000 | ||||||
Final settlement payment for Tax Receivable Agreement | $ 12,000,000 |
Related Party Transactions - Su
Related Party Transactions - Summarized Financial Impact of Transactions with Related Party (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Sales to related party | $ 5.6 |
Georgia-Pacific | Sales to Georgia-Pacific, reflected in net sales | |
Related Party Transaction [Line Items] | |
Sales to related party | 5.6 |
Georgia-Pacific | Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | |
Related Party Transaction [Line Items] | |
Purchases of inventory recognized in cost of products sold | $ 18.8 |
Defined Benefit Plans (Details)
Defined Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
U.S. | ||
Components of net periodic benefit cost (credit): | ||
Service cost | $ 0.6 | $ 0.6 |
Interest cost | 0.3 | 0.4 |
Expected return on plan assets | (1.1) | (1) |
Total other components | (0.8) | (0.6) |
Net periodic benefit cost (credit) | (0.2) | 0 |
Canada | ||
Components of net periodic benefit cost (credit): | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.5 | 0.6 |
Expected return on plan assets | (1) | (0.9) |
Total other components | (0.5) | (0.3) |
Net periodic benefit cost (credit) | $ (0.4) | $ (0.2) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2014 | Mar. 31, 2021 | Dec. 31, 2020 |
UWW Holdings, Inc. XPEDX Merger | |||
Business Acquisition [Line Items] | |||
Fair value of contingent liability associated with the tax receivable agreement | $ 59.4 | ||
Veritiv Restructuring Plan | |||
Business Acquisition [Line Items] | |||
Assets held for sale | $ 1.4 | $ 0.4 |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of the Numerators and Denominators Used in the Basic and Diluted Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) | $ 21.3 | $ (0.4) |
Denominator: | ||
Weighted-average shares outstanding - basic (in shares) | 15,880 | 16,160 |
Dilutive effect of stock-based awards (in shares) | 780 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 16,660 | 16,160 |
Earnings (loss) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.34 | $ (0.02) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.28 | $ (0.02) |
Antidilutive stock-based awards excluded from computation of diluted loss per share (EPS) (in shares) | 110 | 1,280 |
Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met (in shares) | 70 | 320 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Shares Issued (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Shares issued (in shares) | 0.3 | 0.2 |
Shares recovered for minimum tax withholding (in shares) | (0.1) | (0.1) |
Net shares issued (in shares) | 0.2 | 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss ("AOCL") - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 583.1 | $ 536.2 | |
Unrealized net gains (losses) arising during the period | (0.3) | (14) | |
Net current period other comprehensive income (loss) | (0.3) | (14) | |
Ending balance | 577.4 | 526.8 | |
AOCL | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | (33.5) | (33.1) |
Ending balance | [1] | (33.8) | (47.1) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (24.2) | (26.6) | |
Unrealized net gains (losses) arising during the period | (0.3) | (14) | |
Net current period other comprehensive income (loss) | (0.3) | (14) | |
Ending balance | (24.5) | (40.6) | |
Retirement liabilities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (9.1) | (6.2) | |
Unrealized net gains (losses) arising during the period | 0 | 0 | |
Net current period other comprehensive income (loss) | 0 | 0 | |
Ending balance | (9.1) | (6.2) | |
Interest rate cap | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (0.2) | (0.3) | |
Unrealized net gains (losses) arising during the period | 0 | 0 | |
Net current period other comprehensive income (loss) | 0 | 0 | |
Ending balance | $ (0.2) | $ (0.3) | |
[1] | Accumulated other comprehensive loss. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Pension plan withdrawal liability, estimated payment period | 20 years |
Withdrawal from Multiemployer Defined Benefit Plan | Western Pennsylvania Teamsters and Employers Pension Plan | Multiemployer Pension Plans | |
Loss Contingencies [Line Items] | |
Pension plan withdrawal liability | $ 6.5 |
Withdrawal from Multiemployer Defined Benefit Plan | Complete Withdrawal | Western Pennsylvania Teamsters and Employers Pension Plan | Multiemployer Pension Plans | |
Loss Contingencies [Line Items] | |
Pension plan withdrawal liability | $ 7.1 |
Segment and Other Information -
Segment and Other Information - Narrative (Details) $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021segment |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Proceeds from sale of Rollsource business | $ 7.5 | |
Gain on sale of Rollsource business | $ 2.4 |
Segment and Other Information_2
Segment and Other Information - Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,559.3 | $ 1,707.3 |
Adjusted EBITDA | ||
Depreciation and amortization | 14.5 | 13.8 |
Restructuring charges, net | 4.3 | 0 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,532 | 1,681.2 |
Adjusted EBITDA | 106.9 | 83.4 |
Depreciation and amortization | 9.7 | 9.3 |
Restructuring charges, net | 4.8 | |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27.3 | 26.1 |
Adjusted EBITDA | (47.4) | (47.2) |
Depreciation and amortization | 4.8 | 4.5 |
Restructuring charges, net | (0.5) | |
Packaging | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 854.6 | 802.6 |
Adjusted EBITDA | 78 | 59.6 |
Depreciation and amortization | 6.1 | 5.3 |
Restructuring charges, net | 2.7 | |
Facility Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 206.1 | 259.7 |
Adjusted EBITDA | 11.5 | 9 |
Depreciation and amortization | 2 | 1.9 |
Restructuring charges, net | 0.5 | |
Print | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 323.2 | 452.2 |
Adjusted EBITDA | 12.3 | 11.2 |
Depreciation and amortization | 1.6 | 2.1 |
Restructuring charges, net | 1.6 | |
Publishing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 148.1 | 166.7 |
Adjusted EBITDA | 5.1 | 3.6 |
Depreciation and amortization | 0 | $ 0 |
Restructuring charges, net | $ 0 |
Segment and Other Information_3
Segment and Other Information - Reconciliation of Net Income (Loss) to Total Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ 21.3 | $ (0.4) |
Interest expense, net | 5.1 | 7 |
Income tax expense (benefit) | 9.1 | 0.4 |
Depreciation and amortization | 14.5 | 13.8 |
Restructuring charges, net | 4.3 | 0 |
Facility closure charges, including (gain) loss from asset disposition | 0.3 | 1.4 |
Stock-based compensation | 1.2 | 9.4 |
LIFO reserve (decrease) increase | 5.1 | (5.9) |
Non-restructuring severance charges | 0.8 | 1.7 |
Non-restructuring pension charges, net | 0 | 7.1 |
Other | (2.2) | 1.4 |
Adjusted EBITDA for reportable segments | ||
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 4.8 | 4.5 |
Restructuring charges, net | (0.5) | |
Adjusted EBITDA for reportable segments | (47.4) | (47.2) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 9.7 | 9.3 |
Restructuring charges, net | 4.8 | |
Adjusted EBITDA for reportable segments | 106.9 | 83.4 |
Tax Receivable Agreement | ||
Segment Reporting Information [Line Items] | ||
Fair value adjustments on contingent liability | 0 | (0.7) |
Earn Out Payment | All American Containers | ||
Segment Reporting Information [Line Items] | ||
Fair value adjustments on contingent liability | $ 0 | $ 1 |
Uncategorized Items - vrtv-2021
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |