Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DFIN | ||
Entity Registrant Name | Donnelley Financial Solutions, Inc. | ||
Entity Central Index Key | 1,669,811 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 34,116,796 | ||
Entity Public Float | $ 582,894,470 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 | ||
Services cost of sales (exclusive of depreciation and amortization) | 328.8 | 328.7 | 297.1 | ||
Products cost of sales (exclusive of depreciation and amortization) | 258.5 | 240.9 | 226.2 | ||
Total cost of sales | 587.3 | 621.4 | 619 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 258.2 | 236.2 | 210.8 | ||
Restructuring, impairment and other charges-net | 4.4 | 7.1 | 5.4 | ||
Depreciation and amortization | 45.8 | 44.5 | 43.3 | ||
Other operating income | (53.8) | 0 | 0 | ||
Income from operations | 121.1 | 95.7 | 105 | ||
Interest expense-net | 36.7 | 42.9 | 11.7 | ||
Investment and other income-net | (18.3) | (3.4) | (1) | ||
Earnings before income taxes | 102.7 | 56.2 | 94.3 | ||
Income tax expense | 29.1 | 46.5 | 35.2 | ||
Net earnings | $ 73.6 | $ 9.7 | $ 59.1 | ||
Net earnings per share (Note 16): | |||||
Basic net earnings per share | $ 2.18 | $ 0.29 | $ 1.81 | ||
Diluted net earnings per share | $ 2.16 | $ 0.29 | $ 1.80 | ||
Weighted average number of common shares outstanding | |||||
Basic | 33.8 | 33.1 | 32.6 | ||
Diluted | 34 | 33.3 | 32.8 | ||
Services Net Sales | |||||
Total net sales | $ 618 | $ 632.1 | $ 598.6 | ||
Products Net Sales | |||||
Total net sales | 345 | 372.8 | 384.9 | ||
R.R. Donnelley Affiliates | |||||
Total net sales | 19.4 | ||||
Services cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 19.5 | [2] | 37.8 |
Products cost of sales (exclusive of depreciation and amortization) | [1] | $ 0 | $ 32.3 | [2] | $ 57.9 |
[1] | |||||
[2] | Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Consolidated and Combined Sta_2
Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 73.6 | $ 9.7 | $ 59.1 |
Other comprehensive income (loss), net of tax: | |||
Translation adjustments | (5) | 4.4 | (0.1) |
Adjustment for net periodic pension and other postretirement benefits plan cost | (2.2) | (0.7) | 7.1 |
Other comprehensive (loss) income, net of tax | (7.2) | 3.7 | 7 |
Comprehensive income | $ 66.4 | $ 13.4 | $ 66.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 47.3 | $ 52 |
Receivables, less allowances for doubtful accounts of $7.9 in 2018 (2017 - $7.3) | 172.9 | 165.2 |
Inventories | 12.1 | 23.3 |
Prepaid expenses and other current assets | 16.7 | 29.6 |
Total current assets | 249 | 270.1 |
Property, plant and equipment-net | 32.2 | 34.7 |
Software-net | 47.8 | 41.1 |
Goodwill | 450 | 447.4 |
Other intangible assets-net | 37.2 | 39.9 |
Deferred income taxes | 9.7 | 22.2 |
Other noncurrent assets | 42.8 | 38.1 |
Total assets | 868.7 | 893.5 |
LIABILITIES | ||
Accounts payable | 72.4 | 67.8 |
Accrued liabilities | 126 | 119.2 |
Total current liabilities | 198.4 | 187 |
Long-term debt (Note 15) | 362.7 | 458.3 |
Deferred compensation liabilities | 19.5 | 22.8 |
Pension and other postretirement benefits plan liabilities | 51.3 | 52.5 |
Other noncurrent liabilities | 10.8 | 23.5 |
Total liabilities | 642.7 | 744.1 |
Commitments and Contingencies (Note 12) | ||
EQUITY | ||
Preferred stock, $0.01 par value Authorized: 1.0 shares; Issued: None | 0 | 0 |
Common stock, $0.01 par value Authorized: 65.0 shares Issued: 34.2 shares in 2018 (2017 - 33.8 shares) | 0.3 | 0.3 |
Treasury stock, at cost: 0.1 shares in 2018 (2017 - less than 0.1 shares) | (2.4) | (0.9) |
Additional paid-in-capital | 216.5 | 205.7 |
Retained earnings | 94.3 | 8.9 |
Accumulated other comprehensive loss | (82.7) | (64.6) |
Total equity | 226 | 149.4 |
Total liabilities and equity | $ 868.7 | $ 893.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables, allowance for doubtful accounts | $ 7.9 | $ 7.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 65,000,000 | 65,000,000 |
Common stock, Issued | 34,200,000 | 33,800,000 |
Treasury stock, Shares | 100,000 | |
Maximum | ||
Treasury stock, Shares | 100,000 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net earnings | $ 73.6 | $ 9.7 | $ 59.1 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 45.8 | 44.5 | 43.3 |
Provision for doubtful accounts receivable | 4.9 | 3.9 | 3.1 |
Share-based compensation | 9.2 | 6.8 | 2.5 |
Deferred income taxes | 10.5 | 12.4 | (5.9) |
Changes in uncertain tax positions | 0 | (0.2) | 0.9 |
Net pension plan income | (3.2) | (3.3) | (1) |
Gain on change in fair value of investment | (13.6) | 0 | 0 |
Gain on disposition | (53.8) | 0 | 0 |
Gain on investments and other assets - net | 0 | 0.2 | 0.1 |
Other | 2.3 | 2.8 | 1 |
Changes in operating assets and liabilities - net of acquisitions: | |||
Accounts receivable - net | (25.3) | 18 | (43.1) |
Inventories | (1.6) | 0.8 | (1.9) |
Prepaid expenses and other current assets | 1.2 | (3.5) | (7.4) |
Accounts payable | 10.7 | (18.3) | 42.3 |
Income taxes payable and receivable | 9.2 | 5.4 | (3.6) |
Accrued liabilities and other | (1.7) | 14.4 | 17.7 |
Pension and other postretirement benefits plan contributions | (1.9) | (2.2) | (1.1) |
Net cash provided by operating activities | 66.3 | 91.4 | 106 |
INVESTING ACTIVITIES | |||
Capital expenditures | (37.1) | (27.8) | (26.2) |
Acquisition of business, net of cash acquired | (12.5) | 0 | 0 |
Sale (purchase) of investment | 3.1 | (3.4) | (3.5) |
Proceeds from disposition | 77.5 | 0 | 0 |
Other investing activities | (0.8) | 0.2 | 0.4 |
Net cash provided by (used in) investing activities | 30.2 | (31) | (29.3) |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 360 | 298.5 | 0 |
Payments on revolving facility borrowings | (360) | (298.5) | 0 |
Payments on long-term debt | (97.5) | (133) | (50) |
Proceeds from the issuance of common stock | 1.2 | 18.8 | 0 |
Treasury share repurchases | (1.5) | (0.9) | 0 |
Debt issuance costs | (1.2) | (2.1) | (9.3) |
Separation-related payment from R.R. Donnelley | 0 | 68 | 0 |
Proceeds from issuance of long-term debt | 0 | 3.1 | 348.2 |
Net transfers to Parent and affiliates | 0 | 0 | (340.1) |
Net change in short-term debt | 0 | 0 | (8.8) |
Other financing activities | 0 | 0.4 | 0 |
Net cash used in financing activities | (99) | (45.7) | (60) |
Effect of exchange rate on cash and cash equivalents | (2.2) | 1.1 | 4.4 |
Net (decrease) increase in cash and cash equivalents | (4.7) | 15.8 | 21.1 |
Cash and cash equivalents at beginning of year | 52 | 36.2 | 15.1 |
Cash and cash equivalents at end of period | 47.3 | 52 | 36.2 |
Supplemental non-cash disclosure: | |||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 0 | 0 | 300 |
Settlement of intercompany note payable | 0 | 0 | 29.6 |
Accrued debt issuance costs | $ 0 | $ 0 | $ 1.5 |
Consolidated and Combined Sta_4
Consolidated and Combined Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement Of Cash Flows [Abstract] | |
Debt issuance costs | $ 5.5 |
Consolidated and Combined Sta_5
Consolidated and Combined Statements of Equity - USD ($) $ in Millions | Total | R.R. Donnelley & Sons Company | Common Stock | Common StockR.R. Donnelley & Sons Company | Treasury Stock | Treasury StockR.R. Donnelley & Sons Company | Additional Paid-in-Capital | Additional Paid-in-CapitalR.R. Donnelley & Sons Company | Net Parent Company Investment | Net Parent Company InvestmentR.R. Donnelley & Sons Company | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)R.R. Donnelley & Sons Company | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossR.R. Donnelley & Sons Company |
Balance at Dec. 31, 2015 | $ 623.5 | $ 0 | $ 0 | $ 0 | $ 639.5 | $ 0 | $ (16) | |||||||
Balance (in shares) at Dec. 31, 2015 | 0 | 0 | ||||||||||||
Net earnings | 59.1 | $ 0 | $ 0 | 0 | 59.9 | (0.8) | 0 | |||||||
Net transfers to R.R. Donnelley | $ (598.8) | $ 0 | $ 0 | $ 0 | $ (598.8) | $ 0 | $ 0 | |||||||
Separation-related adjustments | 18.7 | 0 | 0 | 0 | 78 | 0 | (59.3) | |||||||
Reclassification of net parent company investment in connection with the Separation | 0 | 0 | 0 | 178.6 | (178.6) | 0 | 0 | |||||||
Issuance of common stock upon separation | 0.3 | $ 0.3 | 0 | 0 | 0 | 0 | 0 | |||||||
Issuance of common stock upon separation (in shares) | 32,400,000 | |||||||||||||
Share-based compensation | 1.3 | $ 0 | 0 | 1.3 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other (in shares) | 200,000 | |||||||||||||
Other comprehensive income | 7 | $ 0 | 0 | 0 | 0 | 0 | 7 | |||||||
Balance at Dec. 31, 2016 | 111.1 | $ 0.3 | $ 0 | 179.9 | 0 | (0.8) | (68.3) | |||||||
Balance (in shares) at Dec. 31, 2016 | 32,600,000 | 0 | ||||||||||||
Net earnings | 9.7 | $ 0 | $ 0 | 0 | 0 | 9.7 | 0 | |||||||
Issuance of additional common shares | 18.8 | $ 0 | 0 | 18.8 | 0 | 0 | 0 | |||||||
Issuance of additional common shares (in shares) | 900,000 | |||||||||||||
Separation-related adjustments | 0.2 | $ 0 | 0 | 0.2 | 0 | 0 | 0 | |||||||
Share-based compensation | 6.8 | 0 | 0 | 6.8 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other | (0.9) | $ 0 | $ (0.9) | 0 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other (in shares) | 300,000 | 0 | ||||||||||||
Other comprehensive income | 3.7 | $ 0 | $ 0 | 0 | 0 | 0 | 3.7 | |||||||
Balance at Dec. 31, 2017 | $ 149.4 | $ 0.3 | $ (0.9) | 205.7 | 0 | 8.9 | (64.6) | |||||||
Balance (in shares) at Dec. 31, 2017 | 33,800,000 | 33,800,000 | 0 | |||||||||||
Net earnings | $ 73.6 | $ 0 | $ 0 | 0 | 0 | 73.6 | 0 | |||||||
Adoption of ASU 2018-02 | 0 | 0 | 0 | 0 | 0 | 10.9 | (10.9) | |||||||
Adoption of ASU 2014-09 | 0.9 | 0 | 0 | 0 | 0 | 0.9 | 0 | |||||||
Share-based compensation | 9.2 | 0 | 0 | 9.2 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other | 0.1 | $ 0 | $ (1.5) | 1.6 | 0 | 0 | 0 | |||||||
Issuance of share-based awards, net of withholdings and other (in shares) | 400,000 | 100,000 | ||||||||||||
Other comprehensive income | (7.2) | $ 0 | $ 0 | 0 | 0 | 0 | (7.2) | |||||||
Balance at Dec. 31, 2018 | $ 226 | $ 0.3 | $ (2.4) | $ 216.5 | $ 0 | $ 94.3 | $ (82.7) | |||||||
Balance (in shares) at Dec. 31, 2018 | 34,200,000 | 34,200,000 | 100,000 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Description of Business Donnelley Financial Solutions, Inc. (“DFIN,” or the “Company”) is a leading global risk and compliance solutions company. The Company provides regulatory filing solutions, software-as-a-service (“SaaS”), technology-enabled services and print and distribution solutions to public and private companies, mutual funds and other regulated investment firms, to serve their regulatory and compliance needs. For corporate clients within its capital markets offerings, the Company offers technology-enabled filing solutions that allow U.S. public companies to comply with applicable U.S. Securities and Exchange Commission (“SEC”) regulations including filing agent services, digital document creation and online content management tools that support their corporate financial transactions and regulatory reporting; solutions to facilitate clients’ communications with their shareholders; and virtual data rooms and other deal management solutions. For the investment markets, including alternative investment and insurance investment companies, the Company provides technology-enabled filing solutions including cloud-based tools for creating and filing high-quality regulatory documents and solutions for investors designed to improve the speed and accuracy of their access to investment information. Throughout a company’s life cycle, the Company serves its clients’ regulatory and compliance needs. The Company’s deep industry and regulatory expertise and a commitment to exceptional service guides our clients to navigate a high-stakes and ever-changing regulatory environment. DFIN’s Registration Statement on Form 10, as amended, was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 20, 2016. On October 1, 2016, DFIN became an independent publicly traded company through the distribution by R.R. Donnelley & Sons Company (“RRD”) of approximately 26.2 million shares, or 80.75%, of DFIN common stock to RRD shareholders (the “Separation”). Holders of RRD common stock received one share of DFIN common stock for every eight shares of RRD common stock held on September 23, 2016. As part of the Separation, RRD retained approximately 6.2 million shares of DFIN common stock, or a 19.25% interest in DFIN. DFIN’s common stock began regular-way trading under the ticker symbol “DFIN” on the New York Stock Exchange on October 3, 2016. On October 1, 2016, RRD also completed the previously announced separation of LSC Communications, Inc. (“LSC”), its publishing and retail-centric print services and office products business. On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. As a result, beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party of the Company, therefore amounts disclosed related to LSC are presented through March 31, 2017 only. On March 24, 2017, pursuant to the Stockholder and Registration Rights Agreement, dated as of September 30, 2016, by and between the Company and RRD, the Company filed a Registration Statement on Form S-1 to register the offering and sale of shares of the Company’s common stock retained by RRD. The Registration Statement on Form S-1, as amended, was declared effective by the SEC on June 13, 2017. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon the consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. In conjunction with the underwritten public offering, the underwriters exercised their option to purchase approximately 0.9 million of the Company’s shares (the “Option Shares”). The Company received approximately $18.8 million in net proceeds from the sale of the Option Shares, after deducting estimated underwriting discounts and commissions. The proceeds were used to reduce outstanding debt under the Revolving Facility (as defined in Note 15, Debt ). Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore amounts disclosed related to RRD are presented through June 30, 2017 only. On September 14, 2016, the Company and LSC entered into a Separation and Distribution Agreement with RRD to effect the distribution of the Company’s and LSC’s common stock to RRD’s common stockholders (the “Separation and Distribution Agreement”). This agreement governs the Company’s relationship with RRD and LSC with respect to pre-Separation matters and provides for the allocation of employee benefit, litigation and other liabilities and obligations attributable to periods prior to the Separation. The Separation and Distribution Agreement also includes an agreement that the Company, RRD and LSC will provide each other with appropriate indemnities with respect to liabilities arising out of the businesses being distributed and retained by RRD in the Separation. The Separation and Distribution Agreement also addresses employee compensation and benefit matters. In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018 or earlier. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitated the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. At the time of the Separation, the Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition, and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. Basis of Presentation The accompanying consolidated and combined financial statements reflect the consolidated financial position and consolidated results of operations of the Company as an independent, publicly traded company for the periods after the Separation and the combined results of operations for the periods prior to the Separation. Prior to the Separation, the combined financial statements were prepared on a stand-alone basis and were derived from RRD’s consolidated financial statements and accounting records. The consolidated and combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. For periods prior to the Separation, the consolidated and combined financial statements include the allocation of certain assets and liabilities that were historically held at the RRD corporate level but which were specifically identifiable or attributable to the Company. Cash and cash equivalents held by RRD were not allocated to DFIN unless they were held in a legal entity that was transferred to DFIN. All intercompany transactions and accounts within DFIN have been eliminated. All intracompany transactions between RRD and DFIN are considered to be effectively settled in the consolidated and combined financial statements at the time the transaction is recorded. The total net effect of the settlement of these intracompany transactions is reflected in the consolidated and combined statements of cash flows as a financing activity and in the consolidated and combined statements of equity as net parent company investment. Net parent company investment is primarily impacted by contributions from RRD which are the result of treasury activities and net funding provided by or distributed to RRD. Prior to the Separation, the consolidated and combined financial statements include certain expenses of RRD which were allocated to DFIN for certain functions, including general corporate expenses related to information technology, finance, legal, human resources, internal audit, treasury, tax, investor relations and executive oversight. These expenses were allocated to the Company on the basis of direct usage, when available, with the remainder allocated on the pro rata basis of revenue, employee headcount, or other measures. The Company considers the expense methodology and results to be reasonable for all periods presented. However, these allocations may not be indicative of the actual expenses that would have been incurred as an independent public company or the costs that may be incurred in the future. For periods prior to the Separation, the income tax amounts in the consolidated and combined financial statements were calculated based on a separate income tax return methodology and presented as if the Company’s operations were separate taxpayers in the respective jurisdictions. RRD maintained various benefit and share-based compensation plans at a corporate level. DFIN employees participated in those programs and a portion of the cost of those plans is included in DFIN’s consolidated and combined financial statements for periods prior to the Separation. On October 1, 2016, DFIN recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company. Refer to Note 13, Retirement Plans DFIN generates a portion of net revenue from sales to RRD’s subsidiaries. Included in the consolidated and combined financial statements are net revenues from sales to RRD and affiliates of $8.3 million for the six months ended June 30, 2017 and $19.4 million for the year ended December 31, 2016, respectively. DFIN utilizes RRD for freight and logistics, production of certain printed products and outsourced business services functions. Included in the consolidated and combined financial statements are cost of sales to RRD and affiliates of $51.8 million for the six months ended June 30, 2017 and $95.7 million for the year ended December 31, 2016, respectively. See Note Related Parties, Changes in Presentation Certain prior year amounts have been restated to conform to the Company’s current reporting unit structure. Due to the sale of the Language Solutions business, the Company made changes to the reporting units within the U.S. segment. The former Language Solutions and other reporting unit has been renamed “Language Solutions.” Certain results previously included within the former Language Solutions and other reporting unit are now included within the Investment Markets reporting unit. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Use of Estimates —The preparation of consolidated and combined financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, taxes, restructuring and other provisions and contingencies. Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be indefinitely reinvested. Fair Value Measurements— Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its pension plan assets on a recurring basis. See Note 13, , for the fair value of the Company’s pension plan assets as of December 31, 2018. The Company adopted Accounting Standards Update No. 2016-01 “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) on January 1, 2018, which requires that investments in equity securities, except those accounted for under the equity method of accounting or those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. The Company measures its equity investments that do not have a readily determinable fair value, at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. Revenue Recognition — The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers and performs XBRL and related services. The Company’s SaaS offerings include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue in situations when amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. Refer to Note 3, Revenue , for a discussion of the impact of the 2018 Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) . Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations. Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s net sales in 2018, 2017 or 2016. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 7, for details of activity affecting the allowance for doubtful accounts receivable. Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. Inventory is valued using the First-In, First-Out (FIFO) method. Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell. Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations. Software — The Company incurs costs to develop software applications for internal-use and for the development of SaaS solutions sold to its clients. These costs include both direct costs from third-party vendors and eligible salaries and payroll-related costs of employees. The Company capitalizes costs associated with internal-use software and SaaS solutions when management with the relevant authority authorizes and commits to the funding of the software project and it is probable that the project will be completed and the software will be used to perform the functions intended. Costs associated with upgrades and enhancements of internal-use software and SaaS solutions are capitalized only if such modifications result in additional functionality of the software, whereas costs incurred for preliminary project stage activities, training, project management and maintenance is expensed as incurred. Capitalized software development costs are amortized over their estimated useful life using the straight-line method, up to a maximum of three years. Amortization expense related to internally-developed software, excluding amortization expense related to other intangible assets, was $24.3 million, $22.5 million and $20.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Goodwill —Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative fair value of each reporting unit. The Company's goodwill balances were reallocated from RRD’s historical reporting units based on the relative fair values of the businesses. Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed. For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, the Company will recognize an impairment loss for the amount by which the carrying amount exceeds the fair value. The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s annual review at October 31, 2018, and its interim review for indicators of impairment as of December 31, 2018, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying amount. Other intangible assets are recognized separately from goodwill and are amortized over their estimated useful lives. See Note 6, Goodwill and Other Intangible Assets, Share-Based Compensation — In periods prior to the Separation, RRD maintained an incentive share-based compensation program for the benefit of its officers, directors, and certain employees, including certain DFIN employees. For those periods share-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of compensation expense to RRD’s corporate and shared functional employees. Subsequent to the Separation, the Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options, restricted stock units (“RSUs”), performance-based restricted stock and performance share units (“PSUs”). The Company recognizes compensation expense for RSUs and PSUs expected to vest on a straight-line basis over the requisite service period of the award. The Company recognizes compensation expense for performance based restricted stock awards granted in 2016 utilizing a graded vesting schedule. Compensation expense for performance based restricted stock awards granted in 2017, which cliff vest, is recognized on a straight-line basis. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period of the award. See Note 17, Share-Based Compensation, Pension and Other Postretirement Benefit Plans — Prior to the Separation, RRD provided pension and other postretirement healthcare benefits to certain current and former employees of DFIN. DFIN’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in DFIN. On October 1, 2016, DFIN recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. DFIN engages outside actuaries to assist in the determination of the obligations and costs under these plans. The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effects of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. Refer to Note 13, Retirement Plans Taxes on Income - In the Company’s combined financial statements prior to Separation, income tax expense and deferred tax balances were calculated on a separate income tax return basis although the Company’s operations have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. As a standalone entity, the Company will file tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in historical periods. Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company maintains an income taxes payable or receivable account in each jurisdiction and, with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances with the RRD tax paying entities in the respective jurisdictions. The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not ( i.e., Income Taxes, Commitments and Contingencies - The Company is subject to lawsuits, investigations and other claims related to environmental, employment, commercial and other matters, as well as preference claims related to amounts received from customers and others prior to their seeking bankruptcy protection. Periodically, the Company reviews the status of each significant matter and assesses potential financial exposure. See Note 12, , for further discussion. Restructuring - The Company records restructuring charges when liabilities are incurred as part of a plan approved by management with the appropriate level of authority for the elimination of duplicative functions, the closure of facilities, or the exit of a line of business, generally in order to reduce the Company’s overall cost structure. See Note 5, , for further discussion. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue | Note 3. Revenue Revenue Recognition The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers, manages virtual data rooms and performs XBRL and related services. Clients are provided with EDGAR filing services, XBRL compliance services and translation, editing, interpreting, proof-reading and multilingual typesetting services, among others. The Company’s SaaS offerings include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. Generally, customer payment is due within ten days upon invoicing. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Revenue for the Company’s services and products is recognized either over time or at a point in time, as outlined below. Over time The Company recognizes revenue for certain services over time. • The Company’s SaaS solutions, including the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure, data and analytics and others, are generally provided on a subscription basis and allow customers access to use the products over the contract period. As a result, revenue for SaaS solutions are recognized ratably over time as the customer receives the benefit throughout the contract period. The timing of invoicing varies, however the customer may be invoiced before the end of the contract period, resulting in a deferred revenue balance. • Revenue for warehousing services are recognized ratably over time as the customer receives the benefit throughout the storage period. Point in time All remaining revenue arrangements are generally recognized at a point in time and are primarily invoiced upon completion of all services or upon shipment to the customer. • Certain of these arrangements include multiple performance obligations and revenue is recognized upon completion of each performance obligation, such as when a document is filed with a regulatory agency and upon completion of printing the related document. For arrangements with multiple performance obligations, the transaction price is allocated to the separate performance obligations. The Company provides customer specific solutions and as such, observable standalone selling price is rarely available. Standalone selling price is more frequently determined using an estimate of the standalone selling price of each distinct service or product, taking into consideration historical selling price by customer for each distinct service or product. These estimates may vary from the final amounts invoiced to the customer and are adjusted upon completion of all performance obligations. Customers may be invoiced subsequent to the recognition of revenue for completed performance obligations , resulting in contract asset balances. • Revenue for arrangements which include assisting customers in completing regulatory filings for transactions, such as mergers and acquisitions or other public capital market transactions, is recognized upon completion of all promises, including the services performed and printing of the related document, if applicable. • Revenue for arrangements without a regulatory filing generally have a single performance obligation, as the services and products provided are not distinct within the context of the contract, and are recognized upon completion of the services performed or upon completion of printing of the related product. • Warehousing, fulfillment services and shipping and handling are each separate performance obligations. As a result, when the Company provides warehousing and future fulfillment services, revenue for the composition services performed and printing of the product is recognized upon completion of the performance obligation(s), as control of the inventory has transferred to the customer and the inventory is being stored at the customer’s request. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue when amounts are invoiced but the revenue recognition criteria are not yet met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. Adoption of ASU 2014-09 In May 2014, the FASB issued ASU 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. On January 1, 2018, the Company adopted the standard and all related amendments, using the modified retrospective approach applied to contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the standard as an opening transition adjustment to retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods (“Previous Revenue Standard”). As a result of the adoption of ASU 2014-09, revenue recognition has been accelerated for certain arrangements with multiple performance obligations as revenue is now recognized upon the completion of each performance obligation rather than upon completion of all services and shipment of the related document, if applicable. Revenue has also been accelerated for certain inventory which has been invoiced but not yet shipped at the customer’s request. Additionally, certain revenues related to virtual data room services have been deferred to be recognized over the term of the contract. As substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less, the Company has applied the practical expedient for performance obligations related to contracts with an initial duration of less than one year and is therefore not required to disclose information regarding remaining performance obligations at the end of the reporting period. The Company has also elected the practical expedient to recognize costs to obtain the contract, primarily commissions, as incurred. The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows: Balance at December 31, 2017 Adoption of ASU 2014-09 Balance at January 1, 2018 Assets Receivables, less allowances for doubtful accounts $ 165.2 $ 8.9 $ 174.1 Inventories 23.3 (10.6 ) 12.7 Deferred income taxes 22.2 (0.5 ) 21.7 Total assets 893.5 (2.2 ) 891.3 Liabilities Accrued liabilities 119.2 (3.1 ) 116.1 Equity Retained earnings 8.9 0.9 9.8 Total liabilities and equity $ 893.5 $ (2.2 ) $ 891.3 The impact of the adoption of ASU 2014-09 on the Company’s consolidated statement of operations for the year ended December 31, 2018 and consolidated balance sheet as of December 31, 2018 was as follows: Year Ended December 31, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 618.1 $ (0.1 ) $ 618.0 Products net sales 345.0 — 345.0 Total net sales 963.1 (0.1 ) 963.0 Services cost of sales (exclusive of depreciation and amortization) 329.4 (0.6 ) 328.8 Products costs of sales (exclusive of depreciation and amortization) 258.5 — 258.5 Total cost of sales 587.9 (0.6 ) 587.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) 258.2 — 258.2 Income tax expense 28.9 0.2 29.1 Net earnings $ 73.3 $ 0.3 $ 73.6 Earnings per share Basic 2.17 0.01 2.18 Diluted 2.15 0.01 2.16 December 31, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Assets Receivables, less allowances for doubtful accounts $ 164.4 $ 8.5 $ 172.9 Inventories 22.0 (9.9 ) 12.1 Deferred income taxes 10.3 (0.6 ) 9.7 Total assets 870.7 (2.0 ) 868.7 Liabilities Accrued liabilities 129.2 (3.2 ) 126.0 Equity Retained earnings 93.1 1.2 94.3 Total liabilities and equity $ 870.7 $ (2.0 ) 868.7 Disaggregation of revenue The following tables disaggregates revenue by reporting unit and timing of revenue recognition for the year ended December 31, 2018: Year Ended December 31, 2018 Point in time Over time Total U.S. Capital Markets $ 358.9 $ 97.1 $ 456.0 Investment Markets 291.6 50.5 342.1 Language Solutions 13.7 — 13.7 Total U.S. 664.2 147.6 811.8 International 132.2 19.0 151.2 Total net sales $ 796.4 $ 166.6 $ 963.0 Contract Balances Contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing has not yet occurred. Contract assets were $ 8.7 Contract liabilities consist of deferred revenue and progress billings which are included in accrued liabilities on the consolidated balance sheet. Changes in contract liabilities were as follows: Balance at January 1, 2018 $ 14.2 Deferral of revenue 47.1 Revenue recognized (47.9 ) Disposition (1.6 ) Acquisition 0.2 Balance at December 31, 2018 $ 12.0 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Note 4. Acquisitions and Dispositions Acquisition On December 18, 2018, the Company acquired eBrevia, a leading provider of artificial intelligence-based data extraction and contract analytics software solutions. The eBrevia technology provides leading enterprise contract review and analysis solutions, leveraging machine learning to produce faster and more accurate results. eBrevia's software, which extracts and summarizes key legal provisions and other information, can be used in due diligence, contract management, lease abstraction and document drafting. The acquisition enhances the Company’s Venue Deal Solutions offerings to provide clients with secure data aggregation, due diligence, compliance and risk management solutions. The Company previously held a 12.8% investment in eBrevia prior to the acquisition. The purchase price for the remaining equity of eBrevia, which includes the Company’s estimate of contingent consideration, was $ million, net of cash acquired of $0.2 million. $4.1 million of the purchase price, excluding contingent consideration and amounts held in escrow, was payable as of December 31, 2018 and is expected to be paid during 2019. The fair value of the Company’s previously held investment was $3.3 million, resulting in the recognition of a $1.8 million gain, which is reflected in investment and other income in the consolidated statements of operations for the year ended December 31, 2018. The fair value of the previously held investment was determined based on the purchase price paid for the remaining equity less an estimated control premium. The former owners of eBrevia, excluding the Company, may receive additional contingent consideration of up to $3.5 million in cash subject to eBrevia achieving certain financial targets during the twenty-four months post acquisition. As of the acquisition date, the Company estimated the fair value of contingent consideration to be $0.8 million using a probability weighting of the potential payouts. Subsequent changes in the estimated contingent consideration from the final purchase price allocation will be recognized in the Company’s consolidated statement of operations. The operations of eBrevia are included within the Capital Markets reporting unit in the U.S. segment. For the years ended December 31, 2018 and 2017, the Company recorded $0.8 million and $0.2 million, respectively, of acquisition-related expenses associated with acquisitions completed or contemplated within selling, general and administrative expenses in the consolidated statement of operations. The eBrevia acquisition was recorded by allocating the cost of the acquisition to the assets acquired, including other intangible assets, based on their estimated fair values at the acquisition date. The excess of the cost of the acquisition over the net amounts assigned to the fair value of the assets acquired was recorded as goodwill. There is no tax deductible goodwill related to the eBrevia acquisition. The purchase price allocation for eBrevia is preliminary as the Company is still in the process of obtaining data to finalize the estimated fair values of certain account balances. The final purchase price allocation may differ from what is currently reflected in the consolidated financial statements. Based on the current valuation, the preliminary purchase price allocation for this acquisition is as follows: Accounts receivable $ 0.3 Other intangible assets 11.4 Software 0.8 Goodwill 12.8 Accounts payable and accrued liabilities (0.4 ) Deferred taxes-net (1.7 ) Total purchase price-net of cash acquired 23.2 Less: fair value of the Company's previously held investment in eBrevia (3.3 ) Less: fair value of contingent consideration (0.8 ) Less: payable for initial consideration (4.1 ) Less: amounts held in escrow and liabilities assumed (2.5 ) Net cash paid $ 12.5 Disposition On July 22, 2018, the Company sold its Language Solutions business, which helped companies adapt their business content into different languages for specific countries, markets and regions, for net proceeds of $77.5 million in cash, all of which was received as of December 31, 2018, resulting in a gain of $53.8 million, which was recognized in other operating income in the consolidated statement of operations for the year ended December 31, 2018. Language Solutions' operating results were included within the Language Solutions reporting unit within the U.S. segment as well as the International segment. |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other Charges | Note 5. Restructuring, Impairment and Other Charges Restructuring, Impairment and Other Charges recognized in Results of Operations Employee Other Restructuring Total Restructuring Other 2018 Terminations Charges Charges Charges Total U.S. $ 1.0 $ 0.8 $ 1.8 $ 0.2 $ 2.0 International 1.8 — 1.8 — 1.8 Corporate 0.6 — 0.6 — 0.6 Total $ 3.4 $ 0.8 $ 4.2 $ 0.2 $ 4.4 For the year ended December 31, 2018, the Company recorded net restructuring charges of $3.4 million for employee termination costs for 89 employees, substantially all of whom were terminated as of December 31, 2018. These charges primarily related to the reorganization of certain operations and certain administrative functions. During the year ended December 31, 2018, the Company also incurred of net lease termination and other restructuring costs and $0.2 million for other charges associated with the Company’s decision to withdraw in 2013 from certain-multi-employer pension plans serving facilities that continued to operate. Employee Other Restructuring Total Restructuring Other 2017 Terminations Charges Charges Impairment Charges Total U.S. $ 3.3 $ 0.2 $ 3.5 $ 0.2 $ 0.2 $ 3.9 International 2.1 0.1 2.2 — — 2.2 Corporate 1.0 — 1.0 — — 1.0 Total $ 6.4 $ 0.3 $ 6.7 $ 0.2 $ 0.2 $ 7.1 For the year ended December 31, 2017, the Company recorded net restructuring charges of $6.4 million for employee termination costs for 192 employees, all of whom were terminated as of December 31, 2018. These charges primarily related to the reorganization of certain operations and certain administrative functions. During the year ended December 21, 2017, the Company also incurred $0.3 million of net lease termination and other restructuring costs, $0.2 million of net impairment charges related to leasehold improvements associated with facility closures and $0.2 million for other charges associated with the Company’s decision to withdraw in 2013 from certain-multi-employer pension plans serving facilities that continued to operate. Employee Other Restructuring Total Restructuring Other 2016 Terminations Charges Charges Charges Total U.S. $ 3.0 $ 1.5 $ 4.5 $ 0.2 $ 4.7 International 0.6 — 0.6 — 0.6 Corporate 0.1 — 0.1 — 0.1 Total $ 3.7 $ 1.5 $ 5.2 $ 0.2 $ 5.4 For the year ended December 31, 2016, the Company recorded net restructuring charges of $3.7 million for employee termination costs for 84 employees, all of whom were terminated as of December 31, 2017. These charges primarily related to the reorganization of certain administrative functions. Additionally, the Company incurred lease termination and other restructuring charges of $1.5 million for the year ended December 31, 2016. Restructuring Reserve The restructuring reserve as of December 31, 2018 and 2017, and changes during the year ended December 31, 2018, were as follows: December 31, Restructuring Foreign Exchange and Cash December 31, 2017 Charges Reversals Other Paid 2018 Employee terminations $ 1.3 $ 3.6 $ (0.2 ) $ — $ (4.3 ) $ 0.4 Lease terminations and other 2.1 0.8 — — (1.6 ) 1.3 Total $ 3.4 $ 4.4 $ (0.2 ) $ — $ (5.9 ) $ 1.7 The current portion of restructuring reserves of $1.4 million at December 31, 2018 was included in accrued liabilities, while the long-term portion of $0.3 million, primarily related to lease termination costs, was included in other noncurrent liabilities at December 31, 2018. The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June 30, 2019. The restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2021. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements. The restructuring reserve as of December 31, 2017 and 2016, and changes during the year ended December 31, 2017, were as follows: December 31, Restructuring Foreign Exchange and Cash December 31, 2016 Charges Reversals Other Paid 2017 Employee terminations $ 1.6 $ 6.5 $ (0.1 ) $ — $ (6.7 ) $ 1.3 Lease terminations and other 3.8 3.7 (3.4 ) 0.3 (2.3 ) 2.1 Total $ 5.4 $ 10.2 $ (3.5 ) $ 0.3 $ (9.0 ) $ 3.4 The current portion of restructuring reserves of $2.7 million at December 31, 2017 was included in accrued liabilities, while the long-term portion of $0.7 million, primarily related to lease termination costs, was included in other noncurrent liabilities at December 31, 2017. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows: U.S. International Total Net book value as of January 1, 2017 $ 429.2 $ 17.2 $ 446.4 Foreign exchange and other adjustments — 1.0 1.0 Net book value as of December 31, 2017 429.2 18.2 447.4 Acquisition 12.8 — 12.8 Disposition (3.5 ) (5.8 ) (9.3 ) Foreign exchange and other adjustments — (0.9 ) (0.9 ) Net book value as of December 31, 2018 $ 438.5 $ 11.5 $ 450.0 The components of other intangible assets at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 149.3 $ (113.1 ) $ 36.2 $ 140.6 $ (100.7 ) $ 39.9 Trade names 3.9 (2.9 ) 1.0 2.9 (2.9 ) — Total other intangible assets $ 153.2 $ (116.0 ) $ 37.2 $ 143.5 $ (103.6 ) $ 39.9 During the year ended December 31, 2018, the Company recorded the following additions to other intangible assets: December 31, 2018 Amount Amortization Period Customer relationships $ 10.4 15.0 Trade name 1.0 5.0 Total $ 11.4 Amortization expense for other intangible assets was $13.7 million, $15.0 million and $14.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2018: For the year ending December 31, Amount 2019 $ 14.6 2020 13.0 2021 0.9 2022 0.9 2023 0.9 2024 and thereafter 6.9 Total $ 37.2 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Note 7. Accounts Receivable Transactions affecting the allowances for doubtful accounts receivable during the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance, beginning of year $ 7.3 $ 6.4 $ 4.6 Provisions charged to expense 4.9 3.9 3.1 Write-offs and other (4.3 ) (3.0 ) (1.3 ) Balance, end of year $ 7.9 $ 7.3 $ 6.4 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 8. Inventories The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2018 and 2017 were as follows: 2018 2017 Raw materials and manufacturing supplies $ 4.0 $ 3.3 Work in process 8.1 13.7 Finished goods — 6.3 Total $ 12.1 $ 23.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 9. Property, Plant and Equipment The components of the Company’s property, plant and equipment at December 31, 2018 and 2017 were as follows: 2018 2017 Land $ 10.0 $ 10.0 Buildings 36.2 36.1 Machinery and equipment 106.3 104.0 152.5 150.1 Less: Accumulated depreciation (120.3 ) (115.4 ) Total $ 32.2 $ 34.7 During the years ended December 31, 2018, 2017 and 2016, depreciation expense was $7.5 million, $7.0 million and $8.4 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 10. Investments In January 2016, the FASB issued ASU 2016-01, which requires that investments in equity securities, except those accounted for under the equity method of accounting or those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. The Company adopted ASU 2016-01 on January 1, 2018. Upon adoption of ASU 2016-01, there was no material impact on the Company’s consolidated financial position, results of operations or cash flows. The carrying value of the Company’s equity investments within the scope of ASU 2016-01 was $22.1 million and $14.9 million as of December 31, 2018 and December 31, 2017, respectively. The Company measures its equity investments that do not have a readily determinable fair value, at The following table summarizes realized and unrealized gains and losses on equity investments recognized in investment and other income in the consolidated statements of operations during the year ended December 31, 2018: Year ended December 31, 2018 Net gain on equity securities $ 11.8 Less: net gain recognized on equity securities sold (2.4 ) Unrealized net gain recognized on equity securities still held at the reporting date $ 9.4 Refer to Note 4, Acquisitions and Dispositions |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 11. Accrued Liabilities The components of the Company’s accrued liabilities at December 31, 2018 and 2017 were as follows: 2018 2017 Employee-related liabilities $ 63.3 $ 68.9 Customer-related liabilities 16.1 22.9 Income taxes payable 12.4 1.6 Accrued interest payable 5.8 6.4 Restructuring liabilities 1.4 2.7 Other 27.0 16.7 Total accrued liabilities $ 126.0 $ 119.2 Employee-related liabilities consist primarily of sales commission, incentive compensation, employee benefit accruals and payroll. Customer-related liabilities consist primarily of deferred revenue and progress billings and volume discount accruals. Other accrued liabilities include miscellaneous operating accruals and other tax liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies As of December 31, 2018, the Company had commitments of approximately $5.0 million for the purchase of property, plant and equipment related to an incomplete project. In addition, as of December 31, 2018, the Company had commitments of approximately $38.1 million for outsourced services, professional, maintenance and other services and $4.6 million of miscellaneous other obligations. The Company also has contractual commitments of $0.4 million for severance payments related to employee restructuring activities. Future minimum rental commitments under operating leases are as follows: Year Ended December 31 Amount 2019 $ 26.4 2020 22.6 2021 16.6 2022 10.9 2023 8.7 2024 and thereafter 16.3 $ 101.5 The Company has operating lease commitments, including those for vacated facilities, totaling $101.5 million extending through various periods to 2026. Lease terms for some locations provide for rent escalations and renewal options, with some leases requiring payment for taxes, insurance and maintenance. Escalation terms and renewal options vary by market and lease. Future rental commitments for leases have not been reduced by minimum non-cancelable sublease rentals aggregating approximately $28.5 million. The Company remains secondarily liable under these leases in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreements. Rent expense for facilities in use and equipment was $25.1 million, $27.4 million and $23.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. Rent expense for vacated facilities was recognized as restructuring, impairment and other charges. See Note 5 Restructuring, Impairment and Other Charges, for further details. Litigation From time to time, the Company’s customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or cash flows. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 13. Retirement Plans DFIN’s Participation in RRD’s Pension and Postretirement Benefit Plans RRD provided pension and other postretirement healthcare benefits to certain current and former employees of DFIN. DFIN’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in DFIN. Total RRD pension and postretirement benefit plan net income allocated to DFIN, related to pension cost and postretirement benefits was $4.2 million in the year ended December 31, 2016. Included in this amount is an allocation for other postretirement benefit plans for $1.0 million in the year ended December 31, 2016. This allocation is reflected in the Company’s selling, general and administrative expenses. DFIN’s Pension and Postretirement Benefit Plans On October 1, 2016, DFIN recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company. The Company’s primary defined benefit plan is frozen. No new employees are permitted to enter the Company’s frozen plan and participants will earn no additional benefits. Benefits are generally based upon years of service and compensation. These defined benefit retirement income plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all funded plans using actuarial cost methods and assumptions acceptable under government regulations. The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the consolidated balance sheets, but are amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive loss. Total pension income was $3.2 million, $3.3 million and $1.0 million in 2018, 2017 and 2016, respectively. During the first quarter of 2018, the Company adopted Accounting Standards Update No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which requires an employer to report the service cost component of net periodic benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are presented in the income statement separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. ASU 2017-07 was adopted on a retrospective basis. The adoption of ASU 2017-07 resulted in the presentation of net pension income within investment and other income in the consolidated statement of operations instead of selling, general and administrative expenses. Prior period net pension income was also reclassified. During the year ended December 31, 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables which were used in the calculation of the Company’s U.S. pension obligations. The new mortality tables increased the expected life of plan participants, extending the length of time that payments may be required and increasing the plans’ total expected benefit payments. During the years ended December 31, 2016, and December 31, 2017, the Company adopted updates to the Society of Actuaries RP-2014 mortality tables. The 2016 and 2017 mortality table updates both resulted in a partial reversal of the 2014 increases in the expected life of plan participants and benefit obligations. The Company made cash contributions of $1.8 million and $0.1 million to its pension and other postretirement benefit plans, respectively, during the year ended December 31, 2018. The Company expects to make cash contributions of approximately $1.2 million and $0.1 million to its pension and other postretirement benefit plans, respectively, in 2019. The pension plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of active plan participants. The components of the estimated net pension plan income for DFIN’s pension plans for the years ended December 31, 2018, 2017 and 2016 were as follows: Pension Benefits 2018 2017 2016 Interest cost $ 10.3 $ 10.6 $ 2.4 Expected return on plan assets (16.0 ) (16.0 ) (4.1 ) Amortization of actuarial loss 2.5 2.1 0.7 Net periodic benefit income $ (3.2 ) $ (3.3 ) $ (1.0 ) Weighted average assumption used to calculate net periodic benefit expense: Discount rate 3.7 % 4.2 % 3.7 % Expected return on plan assets 6.8 % 7.0 % 7.3 % Reconciliation of funded status Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Benefit obligation at beginning of year $ 309.9 $ 293.3 $ 1.2 $ 1.2 Interest cost 10.3 10.6 — — Actuarial (gain) loss (25.8 ) 22.9 — — Foreign currency translation — — (0.1 ) 0.1 Benefits paid (14.0 ) (16.9 ) (0.1 ) (0.1 ) Benefit obligation at end of year $ 280.4 $ 309.9 $ 1.0 $ 1.2 Fair value of plan assets at beginning of year $ 256.4 $ 235.8 $ — $ — Actual return on assets (15.3 ) 36.1 — — Employer contributions 1.8 2.1 0.1 0.1 Plan transfer — (0.7 ) — — Benefits paid (14.0 ) (16.9 ) (0.1 ) (0.1 ) Fair value of plan assets at end of year $ 228.9 $ 256.4 $ — $ — Funded status at end of year $ (51.5 ) $ (53.5 ) $ (1.0 ) $ (1.2 ) The accumulated benefit obligation for all defined benefit pension and other postretirement benefit plans was $281.4 million and $311.1 million at December 31, 2018 and 2017, respectively. Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Accrued benefit cost (included in accrued liabilities) $ (1.2 ) $ (2.2 ) $ — $ — Pension and other postretirement benefits plan liabilities (50.3 ) (51.3 ) (1.0 ) (1.2 ) Net liabilities recognized in the Consolidated Balance Sheets $ (51.5 ) $ (53.5 ) $ (1.0 ) $ (1.2 ) The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets excluding tax effects, that have not been recognized as components of net periodic cost at December 31, 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Accumulated other comprehensive (loss) income Net actuarial (loss) gain $ (90.7 ) $ (87.6 ) $ 0.1 $ 0.1 Total $ (90.7 ) $ (87.6 ) $ 0.1 $ 0.1 The pre-tax amounts recognized in other comprehensive income (loss) in 2018, 2017, and 2016 as components of net periodic costs were as follows: Pension Benefits 2018 2017 2016 Amortization of: Net actuarial loss $ 2.5 $ 2.1 $ 0.7 Amounts arising during the period: Net actuarial loss (5.6 ) (2.7 ) 10.9 Total $ (3.1 ) $ (0.6 ) $ 11.6 Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2019 are shown below: Pension Benefits Amortization of: Net actuarial loss $ 1.7 Total $ 1.7 The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Discount rate 4.4 % 3.7 % 3.5 % 3.3 % The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2018 and 2017: Pension Benefits 2018 2017 Projected benefit obligation $ 280.4 $ 309.9 Fair value of plan assets 228.9 256.4 As discussed above, the Company’s defined benefit plan is frozen and no new employees are permitted to enter the plan. Participants do not earn additional service benefits. Consequently the projected benefit obligation and accumulated benefit obligation are the same amounts. Benefit payments are expected to be paid as follows: Pension Benefits Other Postretirement Benefits 2019 $ 16.1 $ 0.1 2020 17.5 0.1 2021 17.4 0.1 2022 18.9 0.1 2023 18.1 0.1 2024-2028 91.8 0.4 Plan Assets The Company’s U.S. pension plans are frozen and the Company has a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. The expected long-term rate of return for plan assets is based upon many factors including asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The target asset allocation percentage as of December 31, 2018, for the primary U.S. pension plan was approximately 50.0% for return seeking investments and approximately 50.0% for fixed income investments. The Company segregated its plan assets by the following major categories and levels for determining their fair value as of 201 8 : Cash and cash equivalents— Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. As such, these assets were classified as Level 2. Equity— The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Fixed income— Fixed income securities are typically priced based on a valuation model rather than a last trade basis and are not exchange-traded. These valuation models involve utilizing dealer quotes, analyzing market information, estimating prepayment speeds and evaluating underlying collateral. Accordingly, the Company classified these fixed income securities as Level 2. Fixed income securities also include investments in various asset-backed securities that are part of a government sponsored program. The prices of these asset-backed securities were obtained by independent third parties using multi-dimensional, collateral specific prepayments tables. Inputs include monthly payment information and collateral performance. As the values of these assets was determined based on models incorporating observable inputs, these assets were classified as Level 2. Real estate funds— Real estate fund assets are valued by third-party appraisers utilizing valuation approaches based upon current cost to reproduce, discounted cash flows or relative sales value of comparable properties. Key inputs and assumptions used to determine fair value include rental revenue and expenses, revenue and expense growth rates, terminal capitalization rates and discount rates. As the value of these assets was determined based on observable inputs obtained by third parties, the Company classified these assets as Level 2. The Company invests in certain funds that are valued at calculated net asset value per share (“NAV”), but are not quoted on active markets. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV. For Level 2 plan assets, management reviews significant investments on a quarterly basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates. The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The fair values of the Company’s pension plan assets at December 31, 2018 and 2017, by asset category were as follows: December 31, 2018 Asset Category Total Level 1 Level 2 Cash and cash equivalents $ 1.5 $ 1.2 $ 0.3 Real estate funds 9.5 — 9.5 Assets measured at NAV 217.9 — — Total $ 228.9 $ 1.2 $ 9.8 December 31, 2017 Asset Category Total Level 1 Level 2 Cash and cash equivalents $ 7.0 $ 3.2 $ 3.8 Equity 63.5 63.5 — Fixed income 87.1 — 87.1 Assets measured at NAV 98.8 — — Total $ 256.4 $ 66.7 $ 90.9 Employer 401(k) Savings Plan — For the benefit of most of its U.S. employees, the Company maintains a defined contribution retirement savings plan (401(k)) that is intended to be qualified under Section 401(a) of the Internal Revenue Code. Under this plan, employees may contribute a percentage of eligible compensation on both a before-tax and after-tax basis. The Company provided a 401(k) discretionary match to participants in 201 8 and 201 7 , payable to participants' accounts in the first quarter of 201 9 and in the first quarter of 201 8 , respectively . The total expense attributable to the match was $ million and $ 3.4 million for the year s ended December 31, 2018 and 2017, respectively . The Company did no t provide a 401(k) discretionary match to participants in 2016 . Multi-Employer Pension Plans — The Company no longer participates in any active defined benefit multi-employer pension plans. During each of the years ended December 31, 2018, 2017 and 2016, the Company incurred additional charges of $0.2 million related to its complete withdrawal from one multi-employer pension plan in 2013. These charges were recorded as restructuring, impairment and other charges and represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. See Note 5, to the consolidated and combined financial statements for further details of charges related to complete multi-employer pension plan withdrawal liabilities recognized in the consolidated and combined statements of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes For periods prior to the Separation, income tax expense and deferred tax balances were calculated on a separate tax return basis although the Company’s operations in certain circumstances, particularly the U.S. and Canada, have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. Beginning October 1, 2016, as a stand-alone entity, the Company files tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in the historical periods. The Company maintains an income taxes payable or receivable account in each jurisdiction and with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances for the period prior to the Separation with the RRD tax-paying entities in the respective jurisdictions. These settlements are reflected as changes in net parent company investment in the consolidated and combined balance sheets. Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 U.S. $ 69.3 $ 49.1 $ 84.9 Foreign 33.4 7.1 9.4 Total $ 102.7 $ 56.2 $ 94.3 The components of income tax expense (benefit) from operations for the years ended December 31, 2018 , 201 7 and 201 6 were as follows: 2018 2017 2016 Current: U.S. Federal $ 6.9 $ 12.5 $ 28.6 U.S. State and Local 5.3 5.1 9.0 Foreign 6.3 3.4 3.5 Current income tax expense 18.5 21.0 41.1 Non-Current: U.S. Federal 0.1 12.5 — U.S. State and Local — 0.6 — Non-current income tax expense 0.1 13.1 — Deferred: U.S. Federal 6.8 13.3 (3.1 ) U.S. State and Local 2.9 (0.1 ) (0.4 ) Foreign 0.8 (0.8 ) (2.4 ) Deferred income tax expense (benefit) 10.5 12.4 (5.9 ) Total $ 29.1 $ 46.5 $ 35.2 The following table outlines the reconciliation of differences between the U.S. Federal statutory tax rate and the Company’s worldwide effective income tax rate: 2018 2017 2016 Federal statutory tax rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of U.S. federal income tax benefit 6.5 5.7 5.9 Global intangible low-taxed income provision 2.0 — — Non-deductible expenses 1.9 3.6 — Foreign tax rate differential 1.1 (1.3 ) (0.7 ) Changes in valuation allowances 0.5 0.5 (1.9 ) Adjustment of uncertain tax positions and interest 0.2 (0.4 ) 0.6 Federal and state transition tax on foreign earnings 0.1 25.3 — Domestic manufacturing deduction — (0.7 ) (1.3 ) Tax exempt income and expense (2.9 ) — — Tax Act revaluation of U.S. net deferred tax assets (2.2 ) 14.8 — Credits and incentives (1.3 ) — — Other 1.4 0.2 (0.3 ) Effective income tax rate 28.3 % 82.7 % 37.3 % The 2018 effective income tax rate is lower as compared to the 2017 effective income tax rate mainly due to impacts of the changes to U.S. tax legislation as a result of the enactment of the Tax Cuts and Jobs Act (H.R. 1) (“the Tax Act”) on December 22, 2017. The 2018 effective income tax rate was impacted by the global intangible low-taxed income ("GILTI") provision, non-deductible expenses and also reflects the tax impact of the sale of the Language Solutions business. Along with the effects of the Tax Act, the 2017 effective income tax rate was impacted by non-deductible expenses incurred by the Company in 2017 which were previously incurred by RRD on behalf of the Company during pre-Separation periods. The 2017 effective income tax rate is higher as compared to the 2016 effective income tax rate mainly due to the impact of the Tax Act. The 2017 effective income tax rate was also impacted by non-deductible expenses incurred by the Company in 2017 which were previously incurred by RRD on behalf of the Company during pre-Separation periods, as well as a one-time favorable change in valuation allowances in 2016 not present in 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period of one year from the Tax Act enactment date for companies to complete their accounting. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply its accounting on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the tax effects and recorded provisional amounts in its consolidated financial statements for the year ended December 31, 2017. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, the Company revalued its U.S. deferred tax assets and liabilities as of December 31, 2017. The Company recorded a reduction in the value of its net U.S. deferred tax asset of approximately $8.2 million, which was recorded as additional deferred income tax expense in the Company’s consolidated statement of operations for the year ended December 31, 2017. Due to the transition to a territorial tax system under the Tax Act, the Company will be deemed to repatriate its foreign subsidiaries’ untaxed accumulated earnings and pay a mandatory U.S. federal tax (“the transition tax”) of 15.5% on the portion of the earnings that are in cash and cash equivalents and 8.0% on the portion of earnings that are in non-cash and non-cash equivalent assets. The Company estimated this tax liability (federal and state) to be approximately $14.2 million which was recorded as income tax expense in the consolidated statement of operations for the year ended December 31, 2017. In accordance with SAB 118, the impact of the revaluation of deferred tax assets ($8.2 million) and the transition tax ($14.2 million) were recorded in the Company’s financial statements for the year ended December 31, 2017 as provisional amounts as the Company was able to reasonably estimate the impact of these items. During the year ended December 31, 2018, the Company recorded a $0.1 million increase to the deemed repatriation tax liability and a $2.2 million benefit related to the revaluation of deferred tax assets and liabilities. The adjustments were the result of the Company’s completion of the analysis of the impact of the Tax Act including changes in interpretations and assumptions that the Company previously made for the prior year provisional estimates as well as the impact from additional regulatory guidance issued. During the year ended December 31, 2018, the Company also updated its indefinite reinvestment assertion in accordance with SAB 118. There was no financial impact related to the Company’s indefinite reinvestment assertion update. As of December 31, 2018, the Company’s analysis for the income tax effect of the Tax Act was completed. As available under the Tax Act, the Company made an election to pay the transition tax liability in installments over eight years. However, since the Company was in a tax overpayment position on its 2017 tax return, the Department of the U.S. Treasury Internal Revenue Service (“IRS”) satisfied the full transition tax liability by reducing the overpayment carried forward into the 2018 tax return. Consequently, there is no transition tax payable recorded in the Company’s consolidated balance sheet as of December 31, 2018. The Company recorded $13.1 million of this liability as noncurrent taxes payable and $1.1 million as current taxes payable in the Company’s consolidated balance sheet as of December 31, 2017. Along with the change to a territorial tax system, the Tax Act created the GILTI provision. The GILTI provision imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign subsidiary corporations. The Company is subject to the GILTI tax for the year ended December 31, 2018. The determination of whether the Company is subject to the GILTI provision will be an annual analysis of several factors under the provision, including the amount of foreign income generated by the Company’s foreign subsidiaries and whether the Company has income subject to the GILTI tax, which may change from year to year. In January 2018, the Financial Accounting Standards Board (“FASB”) released guidance on the accounting for GILTI tax, which allows an accounting policy election for companies to either account for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs. The Company has adopted the accounting policy to treat taxes on GILTI inclusions as period costs. Deferred income taxes The significant deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows: 2018 2017 Deferred tax assets: Pension and other postretirement benefit plans liabilities $ 15.1 $ 15.9 Net operating losses and other tax carryforwards 9.1 10.1 Accrued liabilities 12.2 11.9 Share-based compensation 3.0 2.9 Allowance for doubtful accounts 2.2 2.5 Interest 1.4 — Other 0.9 1.2 Total deferred tax assets 43.9 44.5 Valuation allowances (2.1 ) (1.5 ) Total deferred tax assets $ 41.8 $ 43.0 Deferred tax liabilities: Accelerated depreciation $ (12.3 ) $ (6.8 ) Other intangible assets (12.6 ) (12.8 ) Investments (3.1 ) — Prepaid assets (1.4 ) — Lease obligations (1.3 ) — Other (1.6 ) (1.6 ) Total deferred tax liabilities (32.3 ) (21.2 ) Net deferred tax assets $ 9.5 $ 21.8 The amounts above are included in the Consolidated Balance Sheets as either a net asset or liability on a jurisdiction by jurisdiction basis. Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance, beginning of year $ 1.5 $ 1.2 $ 4.9 Current year expense (benefit)-net 0.7 0.3 (1.5 ) Write-offs — — (2.3 ) Foreign exchange and other (0.1 ) — 0.1 Balance, end of year $ 2.1 $ 1.5 $ 1.2 As of December 31, 2018, the Company had domestic and foreign net operating loss deferred tax assets of approximately $9.1 million ($10.1 million at December 31, 2017), of which $1.8 million expires between 2019 and 2027. Limitations on the utilization of these deferred tax assets may apply. The Company has provided valuation allowances to reduce the carrying value of certain deferred tax assets, as management has concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized. Earnings generated by a foreign subsidiary are presumed to ultimately be transferred to the parent company. Therefore, the establishment of deferred taxes may be required with respect to the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries (also referred to as book-over-tax outside basis differences). A company may overcome this presumption and forgo recording a deferred tax liability in its financial statements if it can assert that management has the intent and ability to indefinitely reinvest the earnings of its foreign subsidiaries. Prior to the year ended December 31, 201 7 , the Company has not provided deferred U.S., foreign or local income taxes on the book-over-tax outside basis differences of its foreign subsidiaries because such excess has been considered to be indefinitely reinvested in the local country businesses. As a result of the transition tax incurred pursuant to the Tax Act, the Company now has the ability to repatriate any previously taxed foreign cash associated with the foreign earnings subject ed to U.S. tax to the U.S. parent with minimal additional tax consequences. The Company intends to repatriate earnings up to its net earnings previously subject to U.S. tax. Thus, the Company updated its assertion in 2018 related to indefinite reinvestment on all foreign earnings and other outside basis differences to indicate that the Company remains indefinitely reinvested in operations outside of the U.S. with the exception of the previously taxed foreign cash already subject to U.S. tax . The Company continues to analyz e its global working capital and cash requirements to determine the amount of excess cash at its foreign subsidiaries that can be repatriated to the U.S. with minimal additional taxes. T he Company has not yet completed its gl obal capital structure analysis. As such, the Company has not recorded deferred taxes attributable to the book-over-tax outside basis differences in its foreign subsidiaries as of December 31, 2018. The Company will record the tax effects related to repatriating any previously taxed foreign cash in the period when the Company begins repatriating this previously taxed foreign cash. Cash payments for income taxes for U.S. states and foreign jurisdictions were $10.1 million, $30.5 million and $5.2 million in 2018, 2017 and 2016, respectively. In certain jurisdictions, such as the United States and Canada, the Company is deemed to settle tax balances as of October 1, 2016 with RRD within net parent investment. Uncertain tax positions Changes in the Company’s unrecognized tax benefits at December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance at beginning of year $ 0.3 $ 1.9 $ 1.0 Additions for tax positions of the current year 0.2 — — Additions for tax positions of prior years 0.1 — 0.9 Settlements during the year (0.1 ) (1.4 ) — Releases (0.2 ) (0.2 ) — Balance at end of year $ 0.3 $ 0.3 $ 1.9 As of December 31, 2018, 2017 and 2016, the Company had $0.3 million, $0.3 million and $1.9 million, respectively, of unrecognized tax benefits. Unrecognized tax benefits of $0.3 million as of December 31, 2018, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net earnings. This potential impact on net earnings reflects the reduction of these unrecognized tax benefits, net of certain deferred tax assets and the federal tax benefit of state income tax items. As of December 31, 2018, no portion of the total amount of unrecognized tax benefits is expected to decrease within twelve months due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state or international tax positions. The Company classifies interest expense and any penalties related to income tax uncertainties as a component of income tax expense. The total interest expense/(benefit), net of tax benefits, related to tax uncertainties recognized in the Consolidated and Combined Statements of Operations was de minimis for the year ended December 31, 2018 and was ($0.2) million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. There were no benefits from the reversal of accrued penalties for the years ended December 31, 2018, 2017 and 2016. There were no accrued interest liabilities or accrued penalties related to income tax uncertainties at December 31, 2018 and 2017. The Company has tax years from 2009 that remain open and subject to examination by certain U.S. state taxing authorities and/or certain foreign tax jurisdictions. During 2017, the Company filed its initial U.S. federal income tax return as a separate company for the stub period October 1, 2016 through December 31, 2016. There are no U.S. federal income tax years prior to the stub period ending December 31, 2016 subject to IRS examination. All U.S. federal income tax years including and subsequent to the stub period ending December 31, 2016 remain open and subject to IRS examination. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 15. Debt On September 30, 2016, in connection with the Separation, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for (i) a new senior secured term loan B facility in an aggregate principal amount of $350.0 million (the “Term Loan Credit Facility”) and (ii) a new first lien senior secured revolving credit facility in an aggregate principal amount of $300.0 million (the “Revolving Facility”, and, together with the Term Loan Credit Facility, the “Credit Facilities”). The Credit Agreement contains a number of covenants, including a minimum Interest Coverage Ratio and a maximum Net Leverage Ratio, as defined in and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. Borrowings under the Term Loan Credit Facility were used to provide $340.2 million of cash to RRD, pursuant to the Separation Agreement, as of September 30, 2016. The remainder of the net proceeds was used for general corporate purposes. Pursuant to t he Separation and Distribution A greement, the Company received a cash payment of $68.0 million from RRD on April 3, 2017. The proceeds were used to reduce outstanding debt under the Term Loan Credit Facility. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon the consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock of the offering which were subsequently sold by RRD on August 4, 2017. In conjunction with the underwritten public offering, the underwriters exercised their option to purchase approximately 0.9 million Option Shares. The Company received approximately $18.8 million in net proceeds from the sale of the Option Shares, after deducting estimated underwriting discounts and commissions. The proceeds were used to reduce outstanding debt under the Revolving Facility. On October 2, 2017, the Company repriced the Term Loan Credit Facility. As a result, the interest rate was reduced by 100 basis points to LIBOR plus 3.0% and the LIBOR floor was reduced by 25 basis points to 0.75%. Additionally, under the first amended Credit Agreement, principal payments are due on a quarterly basis. Other terms, including the outstanding principal, maturity date, and debt covenants such as the minimum Interest Coverage Ratio and the maximum Leverage Ratio are consistent with the original Credit Agreement. On December 18, 2018, the Company entered into a second amendment to the Credit Agreement which extended the maturity date of the Revolving Facility to December 18, 2023, reduced the interest rate margin percentages and facility fees applicable to the Revolving Facility, increased the allowable annual dividends from $15.0 million to $20.0 million in the aggregate and modified the financial maintenance and negative covenants in the Credit Agreement. As of December 31, 2018, there were no outstanding borrowings under the Revolving Facility. On September 30, 2016, also in connection with the Separation, the Company issued $300.0 million of 8.25% senior unsecured notes due October 15, 2024 (the “Notes”). Interest on the Notes is payable semi-annually on April 15 and October 15, commencing on April 15, 2017. The issuance of the Notes was part of a debt exchange that resulted in the settlement of certain of RRD's bonds. In connection with the offering of the Notes, the Company entered into a registration rights agreement, dated as of September 30, 2016 (the “Registration Rights Agreement”), pursuant to which the Company agreed to file a registration statement with the SEC with respect to an offer to exchange the Notes for registered notes. In certain circumstances, the Company may be required to file a shelf registration statement with the SEC registering the resale of the Notes by the holders thereof, in lieu of an exchange offer to such holders. On March 10, 2017, the Company filed a Registration Statement on Form S-4 (as amended, the “Exchange Offer Registration Statement”) to offer to exchange the Notes for registered notes which have terms identical in all material respects to the Notes except that the registered notes are not subject to transfer restrictions or registration rights. The Exchange Offer Registration Statement was declared effective by the SEC on March 22, 2017. An exchange offer for the Notes was launched on March 22, 2017 and settled on April 25, 2017, resulting in the exchange of $299.9 million aggregate principal amount of outstanding Notes for registered notes. The Company’s debt as of December 31, 2018 and 2017 consisted of the following: December 31, December 31, 2018 2017 8.25% senior notes due October 15, 2024 $ 300.0 $ 300.0 Term Loan Credit Facility 71.3 168.6 Borrowings under the Revolving Facility — — Unamortized debt issuance costs (8.6 ) (10.3 ) Total debt 362.7 458.3 Less: current portion — — Long-term debt $ 362.7 $ 458.3 The fair value of the senior notes, which was determined using the market approach based upon interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s senior notes was $298.1 million and $321.5 million at December 31, 2018 and 2017, respectively. The weighted average interest rate on borrowings under the Revolving Facility was 5.0% and 4.4% at December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company had $3.1 million in outstanding letters of credit and bank guarantees, of which none reduced the availability under the Revolving Facility At December 31, 2018, the future maturities of debt were as follows: Amount 2019 $ — 2020 — 2021 — 2022 — 2023 72.5 2024 and thereafter 300.0 Total (a) $ 372.5 (a) Excludes unamortized debt issuance costs of $8.6 million and a discount of $1.2 million which do not represent contractual commitments with a fixed amount or maturity date. The following table summarizes interest expense included in the Consolidated and Combined Statements of Operations: 2018 2017 2016 Interest incurred $ 37.1 $ 43.5 $ 12.2 Less: interest capitalized as property, plant and equipment (0.4 ) (0.6 ) (0.5 ) Interest expense, net $ 36.7 $ 42.9 $ 11.7 Interest paid was $34.6 million, $40.0 million and $4.8 million in 2018, 2017 and 2016, respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 16. Earnings per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including restricted stock units and restricted stock. On October 1, 2016, RRD distributed approximately 26.2 million shares of DFIN common stock to RRD shareholders in connection with the spin-off of DFIN, with RRD retaining approximately 6.2 million shares of DFIN common stock. Holders of RRD common stock received one share of DFIN for every eight shares of RRD common stock held on September 23, 2016. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of DFIN shares outstanding immediately following this transaction. For periods prior to the Separation, basic and diluted earnings per share were calculated using the number of shares distributed and retained by RRD, totaling 32.4 million. The same number of shares was used to calculate basic and diluted earnings per share since there were no DFIN equity awards outstanding prior to the spin-off. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon consumption of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. Refer to Note 1, Overview and Basis of Presentation The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2018, 2017 and 2016, were as follows. 2018 2017 2016 Net earnings per share: Basic $ 2.18 $ 0.29 $ 1.81 Diluted $ 2.16 $ 0.29 $ 1.80 Numerator: Net earnings $ 73.6 $ 9.7 $ 59.1 Denominator: Weighted average number of common shares outstanding 33.8 33.1 32.6 Dilutive awards 0.2 0.2 0.2 Diluted weighted average number of common shares outstanding 34.0 33.3 32.8 Weighted average number of anti-dilutive share-based awards: Restricted stock units 0.3 0.2 0.2 Stock options 0.6 0.3 0.2 Total 0.9 0.5 0.4 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | Note 17. Share-Based Compensation DFIN’s Stock and Incentive Programs for Employees and Directors The Company’s share-based compensation plan under which it may grant future awards, the 2016 Donnelley Financial Solutions, Inc. Performance Incentive Plan (“2016 PIP”), was approved by the Board of Directors to provide incentives to key employees of the Company. Awards under the 2016 PIP may include, cash or stock bonuses, stock options, stock appreciation rights, restricted stock or restricted stock units (“RSUs”). In addition, non-employee members of the Board of Directors may receive awards under the 2016 PIP. There were 3.5 million shares of common stock reserved and authorized for issuance under the 2016 PIP. At December 31, 2018, there were 1.0 million shares of common stock authorized and available for grant under the 2016 PIP. Impact of the Separation from RRD Prior to the Separation, RRD maintained an incentive stock program for the benefit of its officers, directors and certain employees, including certain DFIN employees. RRD’s share-based compensation programs in which DFIN employees participated included RSUs. In connection with the Separation, as of October 1, 2016, employee stock options and RSUs were adjusted and converted into new equity awards of DFIN, RRD and/or LSC using a 10-day volume weighted average share price of DFIN, RRD and LSC, as described in the Separation and Distribution Agreement. Converted awards retained the same vesting schedule and expiration date of the original awards. All equity awards converted upon Separation were authorized for issuance under the 2016 PIP. In periods following the Separation, the Company records share-based compensation expense for its employees’ equity awards that were converted into DFIN, RRD and/or LSC equity awards. RRD granted RSU awards which cliff vest three years from the grant date. RSU awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control. The Company records compensation expense of RSU awards based on the fair market value of the awards at the date of grant ratably over the period during which the restrictions lapse. Dividends are not paid on RSUs. Share-based compensation expense For all share-based awards granted to employees and directors following the Separation, including stock options, RSUs, performance based restricted stock and performance share units (“PSUs”), the Company recognizes compensation expense based on estimated grant date fair values based on certain assumptions as of the grant date. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. The Company recognizes compensation costs for RSUs expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years . Compensation expense for performance based restricted stock awards granted in 2016, which vest on a graded basis, is recognized utilizing a graded vesting schedule. Compensation expense for performance based restricted stock awards granted in 2017, which cliff vest, is recognized on a straight-line basis over the performance period of the award. The Company recognizes compensation costs for PSUs, which cliff vest, on a straight-line basis over the performance period of the award. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of four years . The stock options, RSUs, performance based restricted stock and PSUs granted during 2017 and 2018 are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee or a change in control of the Company. In addition, upon a change in control of the Company, performance based restricted stock and PSUs will be measured at 100% attainment of the target performance metrics and will remain subject to time based vesting until the end of the vesting period; provided that the award will vest in full if, within three months prior to or two years after the date of the change in control of the Company, the grantee’s employment is terminated without cause by the Company or for good reason by the grantee. In periods prior to the Separation, share-based compensation expense includes expense attributable to the Company based on the award terms previously granted to the Company’s employees and an allocation of compensation expense for RRD’s corporate and shared functional employees. As those share-based compensation plans are RRD’s plans, the amounts have been recognized through net parent company investment on the combined balance sheets. Total compensation expense related to all share-based compensation plans was $9.2 million, $6.8 million and $2.5 million for years ended December 31, 2018, 2017 and 2016, respectively. The income tax benefit related to share-based compensation expense was $2.5 million, $3.0 million and $1.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, $13.1 million of total unrecognized compensation expense related to share-based compensation plans is expected to be recognized over a weighted-average period of 2.0 years. During the first quarter of 2017, the Company adopted ASU 2016-09, which identifies areas of simplification for several aspects of accounting for share-based payment transactions. The adoption of ASU 2016-09 represents a change in accounting principle. The Company has adopted all applicable aspects of this guidance on a prospective basis. Stock Options The Company granted 324,500 options, with a weighted-average grant date fair market value of $5.83, during the year ended December 31, 2018. The Company granted 177,600 options, with a weighted-average grant date fair market value of $7.77, during the year ended December 31, 2017. There were no options granted during the year ended December 31, 2016. The fair market value of each stock option award was estimated using the Black-Scholes-Merton option pricing model and the Company used the following methods to determine its underlying assumptions: • Expected volatility was estimated based on a weighted-average of historical volatilities for the Company’s peer group • The risk-free interest rate was based on the U.S Treasury yield curve in effect on the date of grant • The expected term of options granted was based on the simplified method of using the mid-point between the vesting term and the original contractual term • The expected dividend yield was based on the Company’s current dividend rate The weighted-average assumptions used to determine the weighted-average fair market value of the stock options granted during the years ended December 31, 2018 and December 31, 2017 were as follows: 2018 2017 Expected volatility 27.75 % 30.71 % Risk-free interest rate 2.71 % 2.17 % Expected life (years) 6.25 6.25 Expected dividend yield 0.00 % 0.00 % Stock outstanding Weighted Average Weighted Remaining Aggregate Shares Under Average Contractual Intrinsic Option Exercise Term Value (thousands) Price (years) (millions) Outstanding at December 31, 2017 459 $ 22.13 5.1 $ 0.8 Granted 324 17.91 9.2 Exercised (104 ) 11.95 Cancelled/forfeited/expired (44 ) 24.92 Outstanding at December 31, 2018 635 21.44 7.2 — Vested and expected to vest at December 31, 2018 607 21.54 7.1 — Exercisable at December 31, 2018 — N/A N/A N/A The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on December 31, 2018 and December 31, 2017, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on December 31, 2018 and December 31, 2017. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised was $1.0 million and $0.1 million for the years ended December 31, 2018 and 2017, respectively. There were no excess tax benefits on stock option exercises for the years ended December 31, 2018 and 2017. Compensation . $2.1 million of total Restricted Stock Units Nonvested Weighted Shares Average Grant (Thousands) Date Fair Value Nonvested at December 31, 2017 598 $ 23.48 Granted 456 17.53 Vested (278 ) Forfeited (76 ) Nonvested at December 31, 2018 700 $ 19.60 Compensation expense related to RSUs was $5.2 million, $4.1 million and $1.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $6.8 million of unrecognized share-based compensation expense related to 0.7 million restricted stock unit awards, with a weighted-average grant date fair value of $19.60, that are expected to vest over a weighted-average period of 1.8 years. The fair value of these awards was determined based on the Company’s stock price on the grant date, as the Company currently does not anticipate paying any cash dividends in the foreseeable future. Restricted Stock There were no restricted stock awards granted during the year ended December 31, 2018. Compensation expense for the restricted stock awards is currently being recognized based on 100% attainment of the targeted performance metrics for the restricted stock awards granted in 2017 and is being recognized based on 100% actual achievement of the performance metrics for the restricted stock awards granted in 2016. The total potential payout for awards granted during 2017 range from zero to 129,400 shares, should certain performance targets be achieved. The maximum payout of shares was achieved as of December 31, 2017 for the restricted stock awards granted during 2016 , of which 50 % vested during the fourth quarter of 2018 . Compensation expense for restricted stock awards was $ 2.0 million, $ 2.2 million , and $ 0.3 million for th e years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $ 1.2 million of unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted average period of 1. 0 year . Performance Share Units Nonvested Weighted Shares Average Grant (Thousands) Date Fair Value Nonvested at December 31, 2017 37 $ 22.41 Granted 232 17.65 Forfeited (18 ) Nonvested at December 31, 2018 251 $ 18.23 During the year ended December 31, 2018, 232,300 performance share units were granted to certain executive officers and senior management, payable upon the achievement of certain established performance targets. The performance period for the shares awarded is January 1, 2018 through December 31, 2020. Distributions under these awards are payable at the end of the performance period in common stock. The total potential payout for awards granted during the year ended December 31, 2018 range from zero to 348,450 shares, should certain performance targets be achieved. The fair value of these awards was determined based on the Company’s stock price on the grant date. Compensation expense for the PSUs granted in 2018 and 2017 is currently being recognized based on 100% attainment of the targeted performance metrics or 232,300 and 37,100 shares, for each respective period. Compensation expense related to PSUs was $1.3 million and $0.2 million for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, there was $3.0 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted average period of 2.1 years. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Preferred Stock | Note 18. Preferred Stock The Company has one million shares of $0.01 par value preferred stock authorized for issuance. The Board of Directors may divide the preferred stock into one or more series and fix the redemption, dividend, voting, conversion, sinking fund, liquidation and other rights. The Company has no present plans to issue any preferred stock. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income | Note 19. Comprehensive Income The components of other comprehensive income and income tax expense allocated to each component for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Amount Expense Amount Translation adjustments $ (5.0 ) $ — $ (5.0 ) $ 4.4 $ — $ 4.4 $ (0.1 ) $ — $ (0.1 ) Adjustment for net periodic pension plan and other postretirement benefits plan cost (3.1 ) (0.9 ) (2.2 ) (0.6 ) 0.1 (0.7 ) 11.9 4.8 7.1 Other comprehensive income $ (8.1 ) $ (0.9 ) $ (7.2 ) $ 3.8 $ 0.1 $ 3.7 $ 11.8 $ 4.8 $ 7.0 In February 2018, the FASB issued Accounting Standards Update No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Income Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Act to retained earnings. The Company early adopted the standard in the fourth quarter of 2018. The impact of the adoption resulted in an increase in accumulated comprehensive loss and an increase in retained earnings of $10.9 million. The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2018, 2017 and 2016: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at January 1, 2016 $ — $ (16.0 ) $ (16.0 ) Other comprehensive income (loss) before reclassifications 6.7 (0.1 ) 6.6 Amounts reclassified from accumulated other comprehensive loss 0.4 — 0.4 Transfer of pension plan to parent company, net (59.3 ) — (59.3 ) Net change in accumulated other comprehensive loss (52.2 ) (0.1 ) (52.3 ) Balance at December 31, 2016 $ (52.2 ) $ (16.1 ) $ (68.3 ) Other comprehensive (loss) income before reclassifications (2.1 ) 4.4 2.3 Amounts reclassified from accumulated other comprehensive loss 1.4 — 1.4 Net change in accumulated other comprehensive loss (0.7 ) 4.4 3.7 Balance at December 31, 2017 $ (52.9 ) $ (11.7 ) $ (64.6 ) Other comprehensive (loss) income before reclassifications (4.0 ) (5.0 ) (9.0 ) Amounts reclassified from accumulated other comprehensive loss 1.8 — 1.8 Amounts reclassified in accordance with ASU 2018-02 (10.9 ) — (10.9 ) Net change in accumulated other comprehensive loss (13.1 ) (5.0 ) (18.1 ) Balance at December 31, 2018 $ (66.0 ) $ (16.7 ) $ (82.7 ) Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 were as follows: Classification in the Consolidated and Combined 2018 2017 2016 Statements of Operations Amortization of pension and other postretirement benefits plan cost: Net actuarial loss $ 2.5 $ 2.1 $ 0.7 (a) Reclassifications before tax 2.5 2.1 0.7 Income tax expense 0.7 0.7 0.3 Reclassifications, net of tax $ 1.8 $ 1.4 $ 0.4 (a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to DFIN in periods prior to the Separation, and recognized in investment and other income in the consolidated and combined statements of operations (see Note 13, Retirement Plans |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 20. Segment Information The Company’s segments are summarized below: United States The U.S. segment serves capital market and investment market clients in the U.S. by delivering products and services to help create, manage, and deliver, accurate and timely financial communications to investors and regulators. The Company also provides virtual data rooms to facilitate the deal management requirements of capital markets and mergers and acquisitions transactions, and provides data and analytics services that help professionals uncover intelligence from disclosures contained within public filings made with the SEC. The U.S. segment also includes commercial print. In addition, the U.S. segment included language solutions capabilities, through which the Company translated documents and created content in up to 140 different languages for its clients.* International The International segment includes the Company’s operations in Europe, Asia, Canada and Latin America. The international business is primarily focused on working with international capital markets clients on capital markets offerings and regulatory compliance related activities into or within the United States. In addition, the International segment provided language translation services and shareholder communication services to investment market clients.* *The Company sold its Language Solutions business on July 22, 2018. Refer to Note 4, Acquisitions and Dispositions Corporate Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal, finance, communications and certain facility costs. In addition, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefit plan expense (income) and allocated costs for share-based compensation, are included in Corporate and not allocated to the operating segments. Information by Segment The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated financial statements. Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2018 U.S. $ 821.0 $ (9.2 ) $ 811.8 $ 134.0 $ 681.9 $ 39.6 $ 34.8 International 153.2 (2.0 ) 151.2 31.6 77.6 5.7 1.2 Total operating segments 974.2 (11.2 ) 963.0 165.6 759.5 45.3 36.0 Corporate — — — (44.5 ) 109.2 0.5 1.1 Total operations $ 974.2 $ (11.2 ) $ 963.0 $ 121.1 $ 868.7 $ 45.8 $ 37.1 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2017 U.S. $ 856.6 $ (8.7 ) $ 847.9 $ 127.6 $ 664.7 $ 38.2 $ 24.7 International 160.8 (3.8 ) 157.0 7.2 90.4 6.3 1.4 Total operating segments 1,017.4 (12.5 ) 1,004.9 134.8 755.1 44.5 26.1 Corporate — — — (39.1 ) 138.4 — 1.7 Total operations $ 1,017.4 $ (12.5 ) $ 1,004.9 $ 95.7 $ 893.5 $ 44.5 $ 27.8 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2016 U.S. $ 852.6 $ (7.4 ) $ 845.2 $ 118.4 $ 672.2 $ 34.5 $ 20.5 International 142.9 (4.6 ) 138.3 8.8 93.7 4.6 2.6 Total operating segments 995.5 (12.0 ) 983.5 127.2 765.9 39.1 23.1 Corporate — — — (22.2 ) 213.0 4.2 3.1 Total operations $ 995.5 $ (12.0 ) $ 983.5 $ 105.0 $ 978.9 $ 43.3 $ 26.2 Corporate assets primarily consisted of the following items at December 31, 2018 and 2017: 2018 2017 Software, net $ 46.9 $ 40.6 Cash and cash equivalents 27.2 43.0 Deferred income tax assets, net of valuation allowances 9.1 18.7 Restructuring, impairment and other charges by segment for 2018, 2017, and 2016 are described in Note 5, Restructuring, Impairment and Other Charges. |
Geographic Area and Products an
Geographic Area and Products and Services Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographic Area and Products and Services Information | Note 21. Geographic Area and Products and Services Information The table below presents net sales and long-lived assets by geographic region for the years ended December 31, 2018, 2017 and 2016. U.S. Europe Asia Canada Other Consolidated 2018 Net sales $ 811.8 $ 59.7 $ 55.5 $ 33.4 $ 2.6 $ 963.0 Long-lived assets (a) 117.2 3.1 2.4 0.1 — 122.8 2017 Net sales $ 847.9 $ 70.6 $ 47.2 $ 36.0 $ 3.2 $ 1,004.9 Long-lived assets (a) 107.2 4.5 1.6 0.6 — 113.9 2016 Net sales $ 845.2 $ 62.4 $ 39.2 $ 32.1 $ 4.6 $ 983.5 Long-lived assets (a) 107.4 3.1 0.6 0.5 — 111.6 (a) Includes net property, plant and equipment, net software and other noncurrent assets. The following table summarizes net sales for services and products for the years ended December 31, 2018, 2017 and 2016. 2018 Net Sales 2017 Net Sales 2016 Net Sales Capital Markets $ 408.3 $ 396.7 $ 387.6 Investment Markets* 167.4 164.0 144.4 Language Solutions* 42.3 71.4 66.6 Total services 618.0 632.1 598.6 Investment Markets* $ 194.0 $ 217.9 $ 216.4 Capital Markets 151.0 154.9 168.5 Language Solutions* — — — Total products 345.0 372.8 384.9 Total net sales $ 963.0 $ 1,004.9 $ 983.5 * Prior year amounts were restated to conform to the Company’s current reporting unit structure. Refer to Note 1, Overview and Basis of Presentation |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 22. Related Parties On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. As a result, beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party of the Company and the amounts disclosed related to LSC are presented through March 31, 2017 only. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock. RRD retained approximately 0.1 million shares of the Company’s common stock which RRD sold on August 4, 2017. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party and the amounts disclosed related to RRD are presented through June 30, 2017 only. Transition Services Agreements In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018 or earlier. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitated the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. Commercial Arrangements The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. Stockholder and Registration Rights Agreement The Company and RRD entered into a Stockholder and Registration Rights Agreement with respect to the Company’s common stock retained by RRD pursuant to which the Company agrees that, upon the request of RRD, the Company will use its reasonable best efforts to effect the registration under applicable federal and state securities laws of the shares of the Company’s common stock retained by RRD after the Separation. In addition, RRD granted the Company a proxy to vote the shares of the Company’s common stock that RRD retained immediately after the Separation in proportion to the votes cast by the Company’s other stockholders. This proxy, however, will be automatically revoked as to a particular share upon any sale or transfer of such share from RRD to a person other than RRD, and neither the voting agreement nor the proxy will limit or prohibit any such sale or transfer. On March 24, 2017, pursuant to the Stockholder and Registration Rights Agreement, the Company filed a Registration Statement on Form S-1 to register the offering and sale of the Company’s common stock retained by RRD. The Registration Statement on Form S-1, as amended, was declared effective by the SEC on June 13, 2017. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. Sublease Agreement In connection with the Separation, the Company assumed an operating lease through 2024 for the Company’s headquarters. There is a related non-cancelable sublease rental to RRD for the same period. The Company remains secondarily liable under this lease in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreement. Allocations from RRD Prior to the Separation RRD provided DFIN with certain services, which include, but are not limited to information technology, finance, legal, human resources, internal audit, treasury, tax, investor relations and executive oversight. The financial information in these consolidated and combined financial statements does not necessarily include all the expenses that would have been incurred had DFIN been a separate, standalone entity for all periods presented. Prior to the Separation, RRD charged DFIN for these services based on direct usage when possible. When specific identification was not practicable, the pro rata basis of revenue or employee headcount, or some other measure was used. These allocations were reflected as follows in the consolidated and combined financial statements: 2016 Costs of goods sold allocation $ 28.0 Selling, general and administrative allocation 129.4 Depreciation and amortization 15.2 Total allocations from RRD $ 172.6 The Company considers the expense methodology and results to be reasonable for all periods presented. However, these allocations may not be indicative of the actual expenses that the Company would have incurred as an independent public company or the costs it may incur in the future. Related Party Revenues DFIN generates a portion of net revenue from sales to RRD’s subsidiaries. Net revenues from sales to RRD and affiliates of $8.3 million for the six months ended June 30, 2017 and $19.4 million for the year ended December 31, 2016, were included in the consolidated and combined statement of operations. Related Party Purchases DFIN utilizes RRD for freight and logistics and services as well as certain production of printed products. Cost of sales of $32.3 million for the six months ended June 30, 2017 and $57.9 million for the year ended December 31, 2016 were included in the consolidated and combined statement of operations for these purchases. DFIN also utilizes RRD’s business process outsourcing business for certain composition, XBRL and other functions. Cost of sales of $19.5 million for the six months ended June 30, 2017 and $37.8 million for the year ended December 31, 2016 were included in the consolidated and combined statement of operations for these purchases. Share-Based Compensation Prior to Separation Prior to the Separation, certain DFIN employees participated in RRD’s share-based compensation plans, the costs of which have been allocated to DFIN and recorded in selling, general and administrative expenses in the consolidated and combined statement of operations. Share-based compensation costs allocated to the Company were Retirement Plans Prior to Separation Prior to the Separation, DFIN employees participated in pension and other postretirement plans sponsored by RRD. These costs are reflected in the Company’s cost of sales and selling, general and administrative expenses in the consolidated and combined statements of operations. On October 1, 2016, DFIN recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. Refer to Note 13 , Retirement Plans Centralized Cash Management Prior to Separation RRD used a centralized approach to cash management and financing of operations. Prior to the Separation, the majority of the Company’s foreign subsidiaries were party to RRD’s international cash pooling arrangements to maximize the availability of cash for general operating and investing purposes. As part of RRD’s centralized cash management process, cash balances were swept regularly from the Company’s accounts. Debt RRD’s third party debt and related interest expense have not been allocated to the Company for any of the periods presented as the Company was not the legal obligor of the debt and the borrowings were not directly related to the Company’s business. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 23. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Act to retained earnings. ASU 2018-02 may be applied either in the period of adoption or retrospectively to each period in which the effect of the Tax Act is recognized. The Company early adopted ASU 2018-02 in the fourth quarter of 2018 and applied it to the period of adoption. The impact of the adoption resulted in an increase in accumulated comprehensive loss and an increase in retained earnings of $10.9 million. Refer to Note 19, Comprehensive Income In May 2014, the FASB issued ASU 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which deferred the effective date of ASU 2014-09 to January 1, 2018. The Company adopted the standard on January 1, 2018 using the modified retrospective approach. The Company recognized the cumulative effect of applying the standard as an opening transition adjustment to retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Refer to Note 3, Revenue In March 2017, the FASB issued ASU 2017-07, which the Company adopted retrospectively in the first quarter of 2018. Refer to Note 13, Retirement Plans Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on the balance sheet but recognize expense on the income statement in a manner similar to current accounting. For lessors, ASU 2016-02 also modifies the classification criteria and the accounting for sales-type and direct financing leases. The standard requires a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements and is effective in the first quarter of 2019. In July 2018, the FASB issued Accounting Standards Update 2018-11 (“ASU 2018-11”), which provides an optional transition method to apply ASU 2016-02 in the period of adoption and recognize a cumulative-effect opening transition adjustment to retained earnings, without applying the standard to comparative periods. ASU 2018-11 also provides lessors with a practical expedient to account for lease and associated non-lease components as a single component when certain criteria are met. Early adoption of ASU 2016-02 is permitted; however, the Company will adopt the standard in the first quarter of 2019 and plans to apply the optional transition method upon adoption. The Company is in the process of reviewing its existing lease portfolio, which is primarily comprised of real estate leases, to evaluate the impact of ASU 2016-02 on the consolidated financial statements. The Company currently expects to recognize a lease liability and corresponding right-of-use asset for substantially all operating lease agreements, which will have a significant impact on the Company’s consolidated balance sheet. The Company currently plans to elect the optional package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and therefore, does not expect the adoption of ASU 2016-02 to have a significant impact on the consolidated statement of operations for existing operating leases. The ultimate impact of the standard will depend on the Company’s lease portfolio at the date of adoption. Additionally, the Company is evaluating the processes and internal controls needed to support the changes resulting from the new lease accounting standard. Information about the Company’s undiscounted future lease payments and the timing of those payments is disclosed in Note 12, Commitments and Contingencies |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Note 24. Guarantor Financial Information As described in Note 15, Debt The guarantee of the Notes by a subsidiary guarantor will be automatically released under certain situations, including upon the sale or disposition of such subsidiary guarantor to a person that is not DFIN or a subsidiary guarantor of the notes, the liquidation or dissolution of such subsidiary guarantor, and if such subsidiary guarantor is released from its guarantee obligations under the Company’s Credit Facilities. The following tables set forth consolidating statements of operations for the years ended December 31, 2018, 2017, and 2016, consolidating statements of financial position as of December 31, 2018 and December 31, 2017, and consolidating statements of cash flows for the years ended December 31, 2018, 2017, and 2016. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. For purposes of the tables below, the Company is referred to as “Parent” and the Guarantors are referred to as “Guarantor Subsidiaries.” Consolidating Statements of Operations Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 508.0 $ 116.4 $ (6.4 ) $ 618.0 Products net sales — 313.0 36.8 (4.8 ) 345.0 Total net sales — 821.0 153.2 (11.2 ) 963.0 Services cost of sales (exclusive of depreciation and amortization) — 258.4 76.6 (6.2 ) 328.8 Products cost of sales (exclusive of depreciation and amortization) — 236.7 26.8 (5.0 ) 258.5 Total cost of sales — 495.1 103.4 (11.2 ) 587.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 220.0 38.2 — 258.2 Restructuring, impairment and other charges-net — 2.6 1.8 — 4.4 Depreciation and amortization — 40.1 5.7 — 45.8 Other operating income — (26.6 ) (27.2 ) — (53.8 ) Income from operations — 89.8 31.3 — 121.1 Interest expense (income)-net 37.6 (0.3 ) (0.6 ) — 36.7 Intercompany interest (income) expense - net (25.5 ) 25.6 (0.1 ) — — Investment and other income-net — (16.9 ) (1.4 ) — (18.3 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (12.1 ) 81.4 33.4 — 102.7 Income tax (benefit) expense (5.9 ) 27.9 7.1 — 29.1 Earnings (loss) before equity in net income of subsidiaries (6.2 ) 53.5 26.3 — 73.6 Equity in net income of subsidiaries 79.8 26.3 — (106.1 ) — Net earnings (loss) $ 73.6 $ 79.8 $ 26.3 $ (106.1 ) $ 73.6 Comprehensive income (loss) $ 66.4 $ 72.6 $ 21.3 $ (93.9 ) $ 66.4 Consolidating Statements of Operations Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 518.5 $ 121.7 $ (8.1 ) $ 632.1 Products net sales — 338.1 39.1 (4.4 ) 372.8 Total net sales — 856.6 160.8 (12.5 ) 1,004.9 Services cost of sales (exclusive of depreciation and amortization) — 257.3 78.8 (7.4 ) 328.7 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 18.4 1.1 — 19.5 Products cost of sales (exclusive of depreciation and amortization) — 221.5 24.5 (5.1 ) 240.9 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 30.1 2.2 — 32.3 Total cost of sales — 527.3 106.6 (12.5 ) 621.4 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 197.4 38.8 — 236.2 Restructuring, impairment and other charges-net — 4.9 2.2 — 7.1 Depreciation and amortization — 38.2 6.3 — 44.5 Income from operations — 88.8 6.9 — 95.7 Interest expense (income) -net 43.1 (0.1 ) (0.1 ) — 42.9 Investment and other income-net — (3.3 ) (0.1 ) — (3.4 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (43.1 ) 92.2 7.1 — 56.2 Income tax (benefit) expense (16.7 ) 60.6 2.6 — 46.5 Earnings (loss) before equity in net income of subsidiaries (26.4 ) 31.6 4.5 — 9.7 Equity in net income of subsidiaries 36.1 4.5 — (40.6 ) — Net earnings (loss) $ 9.7 $ 36.1 $ 4.5 $ (40.6 ) $ 9.7 Comprehensive income (loss) $ 13.4 $ 39.8 $ 8.9 $ (48.7 ) $ 13.4 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. Consolidating Statements of Operations Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 502.2 $ 104.1 $ (7.7 ) $ 598.6 Products net sales — 350.4 38.8 (4.3 ) 384.9 Total net sales — 852.6 142.9 (12.0 ) 983.5 Services cost of sales (exclusive of depreciation and amortization) — 236.0 68.2 (7.1 ) 297.1 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) — 35.6 2.2 — 37.8 Products cost of sales (exclusive of depreciation and amortization) — 207.0 24.1 (4.9 ) 226.2 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) — 57.3 0.6 — 57.9 Total cost of sales — 535.9 95.1 (12.0 ) 619.0 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 177.0 33.8 — 210.8 Restructuring, impairment and other charges-net — 4.8 0.6 — 5.4 Depreciation and amortization — 38.6 4.7 — 43.3 Income from operations — 96.3 8.7 — 105.0 Interest expense-net 11.7 — — — 11.7 Investment and other income-net — (0.2 ) (0.8 ) — (1.0 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (11.7 ) 96.5 9.5 — 94.3 Income tax (benefit) expense (4.3 ) 38.5 1.0 — 35.2 Earnings (loss) before equity in net income of subsidiaries (7.4 ) 58.0 8.5 — 59.1 Equity in net income of subsidiaries 66.5 8.5 — (75.0 ) — Net earnings (loss) $ 59.1 $ 66.5 $ 8.5 $ (75.0 ) $ 59.1 Comprehensive income (loss) $ 66.1 $ 73.5 $ 8.6 $ (82.1 ) $ 66.1 Consolidating Balance Sheet December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 24.9 $ 5.0 $ 17.4 $ — $ 47.3 Receivables, less allowances — 141.6 31.3 — 172.9 Intercompany receivables — 123.6 — (123.6 ) — Intercompany short-term note receivable-net — — 60.5 (60.5 ) — Inventories — 10.4 1.7 — 12.1 Prepaid expenses and other current assets — 13.5 3.2 — 16.7 Total current assets 24.9 294.1 114.1 (184.1 ) 249.0 Property, plant and equipment-net — 29.3 2.9 — 32.2 Software-net — 47.8 — — 47.8 Goodwill — 438.5 11.5 — 450.0 Other intangible assets-net — 32.6 4.6 — 37.2 Deferred income taxes — 37.2 2.4 (29.9 ) 9.7 Intercompany long-term note receivable 298.0 — — (298.0 ) — Other noncurrent assets 3.6 35.1 4.1 — 42.8 Investments in consolidated subsidiaries 445.9 106.0 — (551.9 ) — Total assets $ 772.4 $ 1,020.6 $ 139.6 $ (1,063.9 ) $ 868.7 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 61.0 $ 11.4 $ — $ 72.4 Intercompany payables 120.9 — 2.7 (123.6 ) — Intercompany short-term note payable-net 60.0 0.5 — (60.5 ) — Accrued liabilities 0.1 109.2 16.7 — 126.0 Total current liabilities 181.0 170.7 30.8 (184.1 ) 198.4 Long-term debt 362.7 — — — 362.7 Intercompany long-term note payable — 298.0 — (298.0 ) — Deferred compensation liabilities — 19.5 — — 19.5 Pension and other postretirement benefits plan liabilities — 50.3 1.0 — 51.3 Other noncurrent liabilities 2.7 36.2 1.8 (29.9 ) 10.8 Total liabilities 546.4 574.7 33.6 (512.0 ) 642.7 Total equity 226.0 445.9 106.0 (551.9 ) 226.0 Total liabilities and equity $ 772.4 $ 1,020.6 $ 139.6 $ (1,063.9 ) $ 868.7 Consolidating Balance Sheet December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Receivables, less allowances — 131.3 33.9 — 165.2 Intercompany receivables — 146.4 — (146.4 ) — Intercompany short-term note receivable-net — — 30.0 (30.0 ) — Inventories — 21.3 2.0 — 23.3 Prepaid expenses and other current assets 37.1 14.8 2.8 (25.1 ) 29.6 Total current assets 45.4 341.7 84.5 (201.5 ) 270.1 Property, plant and equipment-net — 31.2 3.5 — 34.7 Software-net — 40.6 0.5 — 41.1 Goodwill — 429.2 18.2 — 447.4 Other intangible assets-net — 32.4 7.5 — 39.9 Deferred income taxes — 40.5 3.4 (21.7 ) 22.2 Other noncurrent assets 3.4 30.0 4.7 — 38.1 Investments in consolidated subsidiaries 728.4 85.2 — (813.6 ) — Total assets $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 57.9 $ 9.9 $ — $ 67.8 Intercompany payable 139.5 — 6.9 (146.4 ) — Intercompany short-term note payable-net 30.0 — — (30.0 ) — Accrued liabilities — 127.6 16.7 (25.1 ) 119.2 Total current liabilities 169.5 185.5 33.5 (201.5 ) 187.0 Long-term debt 458.3 — — — 458.3 Deferred compensation liabilities — 22.8 — — 22.8 Pension and other postretirement benefits plan liabilities — 51.3 1.2 — 52.5 Other noncurrent liabilities — 42.8 2.4 (21.7 ) 23.5 Total liabilities 627.8 302.4 37.1 (223.2 ) 744.1 Total equity 149.4 728.4 85.2 (813.6 ) 149.4 Total liabilities and equity $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 Consolidating Statements of Cash Flows Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 85.9 $ (12.0 ) $ (7.6 ) $ 66.3 INVESTING ACTIVITIES Capital expenditures — (35.9 ) (1.2 ) — (37.1 ) Acquisition of business, net of cash acquired — (12.5 ) — — (12.5 ) Sale of investment — 3.1 — — 3.1 Proceeds from disposition — 34.4 43.1 — 77.5 Intercompany note receivable, net — — (30.5 ) 30.5 — Other investing activities — (0.8 ) — — (0.8 ) Net cash provided by (used in) investing activities — (11.7 ) 11.4 30.5 30.2 FINANCING ACTIVITIES Revolving facility borrowings 360.0 — — — 360.0 Payments on revolving facility borrowings (360.0 ) — — — (360.0 ) Payments on long-term debt (97.5 ) — — — (97.5 ) Intercompany note payable, net 29.7 0.8 — (30.5 ) — Proceeds from the issuance of common stock 1.2 — — — 1.2 Treasury stock repurchases (1.5 ) — — — (1.5 ) Debt issuance costs (1.2 ) — (1.2 ) Net cash (used in) provided by financing activities (69.3 ) 0.8 — (30.5 ) (99.0 ) Effect of exchange rate on cash and cash equivalents — — (2.2 ) — (2.2 ) Net increase (decrease) in cash and cash equivalents 16.6 (22.9 ) 1.6 — (4.7 ) Cash and cash equivalents at beginning of year 8.3 27.9 15.8 — 52.0 Cash and cash equivalents at end of period $ 24.9 $ 5.0 $ 17.4 $ — $ 47.3 Supplemental non-cash disclosure: Intercompany debt allocation $ (298.0 ) $ 298.0 $ — $ — $ — Consolidating Statements of Cash Flows Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 39.3 $ 35.7 $ 14.0 $ 2.4 $ 91.4 INVESTING ACTIVITIES Capital expenditures — (26.4 ) (1.4 ) — (27.8 ) Purchase of investment — (3.4 ) — — (3.4 ) Intercompany note receivable, net — — (14.7 ) 14.7 — Other investing activities — 0.2 — — 0.2 Net cash (used in) provided by investing activities — (29.6 ) (16.1 ) 14.7 (31.0 ) FINANCING ACTIVITIES Revolving facility borrowings 298.5 — — — 298.5 Payments on revolving facility borrowings (298.5 ) — — — (298.5 ) Payments on long-term debt (133.0 ) — — — (133.0 ) Debt issuance costs (2.1 ) — — — (2.1 ) Separation-related payment from R.R. Donnelley 68.0 — — — 68.0 Proceeds from the issuance of common stock 18.8 — — — 18.8 Proceeds from issuance of long-term debt 3.1 — — — 3.1 Treasury stock repurchases (0.9 ) — — — (0.9 ) Intercompany note payable, net 14.7 — — (14.7 ) — Other financing activities 0.4 — — — 0.4 Net cash used in financing activities (31.0 ) — — (14.7 ) (45.7 ) Effect of exchange rate on cash and cash equivalents — — 1.1 — 1.1 Net increase (decrease) in cash and cash equivalents 8.3 6.1 (1.0 ) 2.4 15.8 Cash and cash equivalents at beginning of year — 21.8 16.8 (2.4 ) 36.2 Cash and cash equivalents at end of period $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (1.2 ) $ 103.2 $ 6.4 $ (2.4 ) $ 106.0 INVESTING ACTIVITIES Capital expenditures — (23.6 ) (2.6 ) — (26.2 ) Purchase of investment — (3.5 ) — — (3.5 ) Other investing activities — — 0.4 — 0.4 Net cash (used in) investing activities — (27.1 ) (2.2 ) — (29.3 ) FINANCING ACTIVITIES Proceeds from issuance of long-term debt 348.2 — — — 348.2 Payments on long-term debt (50.0 ) — — — (50.0 ) Net change in short-term debt — — (8.8 ) — (8.8 ) Debt issuance costs (9.3 ) — — — (9.3 ) Net transfers to Parent and affiliates (287.7 ) (54.4 ) 2.0 — (340.1 ) Net cash provided by (used in) financing activities 1.2 (54.4 ) (6.8 ) — (60.0 ) Effect of exchange rate on cash and cash equivalents — — 4.4 — 4.4 Net increase (decrease) in cash and cash equivalents — 21.7 1.8 (2.4 ) 21.1 Cash and cash equivalents at beginning of year — 0.1 15.0 — 15.1 Cash and cash equivalents at end of period $ — $ 21.8 $ 16.8 $ (2.4 ) $ 36.2 Supplemental non-cash disclosure: Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs $ 300.0 $ — $ — $ — $ 300.0 Settlement of intercompany note payable — 29.6 — — 29.6 Accrued debt issuance costs 1.5 — — — 1.5 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates —The preparation of consolidated and combined financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, taxes, restructuring and other provisions and contingencies. |
Foreign Operations | Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be indefinitely reinvested. |
Fair Value Measurements | Fair Value Measurements— Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its pension plan assets on a recurring basis. See Note 13, , for the fair value of the Company’s pension plan assets as of December 31, 2018. The Company adopted Accounting Standards Update No. 2016-01 “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) on January 1, 2018, which requires that investments in equity securities, except those accounted for under the equity method of accounting or those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. The Company measures its equity investments that do not have a readily determinable fair value, at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. |
Revenue Recognition | Revenue Recognition — The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers and performs XBRL and related services. The Company’s SaaS offerings include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue in situations when amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. Refer to Note 3, Revenue , for a discussion of the impact of the 2018 Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) . Revenue Recognition The Company manages highly-customized data and materials, such as Exchange Act, Securities Act and Investment Company Act filings with the SEC on behalf of its customers, manages virtual data rooms and performs XBRL and related services. Clients are provided with EDGAR filing services, XBRL compliance services and translation, editing, interpreting, proof-reading and multilingual typesetting services, among others. The Company’s SaaS offerings include the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure and data and analytics, among others. Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. Generally, customer payment is due within ten days upon invoicing. Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore are not distinct. Revenue for the Company’s services and products is recognized either over time or at a point in time, as outlined below. Over time The Company recognizes revenue for certain services over time. • The Company’s SaaS solutions, including the Venue Virtual Data Room, the FundSuiteArc software platform, ActiveDisclosure, data and analytics and others, are generally provided on a subscription basis and allow customers access to use the products over the contract period. As a result, revenue for SaaS solutions are recognized ratably over time as the customer receives the benefit throughout the contract period. The timing of invoicing varies, however the customer may be invoiced before the end of the contract period, resulting in a deferred revenue balance. • Revenue for warehousing services are recognized ratably over time as the customer receives the benefit throughout the storage period. Point in time All remaining revenue arrangements are generally recognized at a point in time and are primarily invoiced upon completion of all services or upon shipment to the customer. • Certain of these arrangements include multiple performance obligations and revenue is recognized upon completion of each performance obligation, such as when a document is filed with a regulatory agency and upon completion of printing the related document. For arrangements with multiple performance obligations, the transaction price is allocated to the separate performance obligations. The Company provides customer specific solutions and as such, observable standalone selling price is rarely available. Standalone selling price is more frequently determined using an estimate of the standalone selling price of each distinct service or product, taking into consideration historical selling price by customer for each distinct service or product. These estimates may vary from the final amounts invoiced to the customer and are adjusted upon completion of all performance obligations. Customers may be invoiced subsequent to the recognition of revenue for completed performance obligations , resulting in contract asset balances. • Revenue for arrangements which include assisting customers in completing regulatory filings for transactions, such as mergers and acquisitions or other public capital market transactions, is recognized upon completion of all promises, including the services performed and printing of the related document, if applicable. • Revenue for arrangements without a regulatory filing generally have a single performance obligation, as the services and products provided are not distinct within the context of the contract, and are recognized upon completion of the services performed or upon completion of printing of the related product. • Warehousing, fulfillment services and shipping and handling are each separate performance obligations. As a result, when the Company provides warehousing and future fulfillment services, revenue for the composition services performed and printing of the product is recognized upon completion of the performance obligation(s), as control of the inventory has transferred to the customer and the inventory is being stored at the customer’s request. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale. The Company records deferred revenue when amounts are invoiced but the revenue recognition criteria are not yet met. Such revenue is recognized when all criteria are subsequently met. Certain revenues earned by the Company require significant judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross. Revenue is not recognized for customer-supplied postage. The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company from third parties and sold to customers. Revenue is not recognized for customer-supplied paper, however revenues for Company-supplied paper are recognized on a gross basis. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to authorities. |
Cash and Cash Equivalents | Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations. |
Receivables | Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s net sales in 2018, 2017 or 2016. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 7, for details of activity affecting the allowance for doubtful accounts receivable. |
Inventories | Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. Inventory is valued using the First-In, First-Out (FIFO) method. |
Long-Lived Assets | Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell. |
Property, Plant and Equipment | Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations. |
Software | Software — The Company incurs costs to develop software applications for internal-use and for the development of SaaS solutions sold to its clients. These costs include both direct costs from third-party vendors and eligible salaries and payroll-related costs of employees. The Company capitalizes costs associated with internal-use software and SaaS solutions when management with the relevant authority authorizes and commits to the funding of the software project and it is probable that the project will be completed and the software will be used to perform the functions intended. Costs associated with upgrades and enhancements of internal-use software and SaaS solutions are capitalized only if such modifications result in additional functionality of the software, whereas costs incurred for preliminary project stage activities, training, project management and maintenance is expensed as incurred. Capitalized software development costs are amortized over their estimated useful life using the straight-line method, up to a maximum of three years. Amortization expense related to internally-developed software, excluding amortization expense related to other intangible assets, was $24.3 million, $22.5 million and $20.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Goodwill | Goodwill —Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative fair value of each reporting unit. The Company's goodwill balances were reallocated from RRD’s historical reporting units based on the relative fair values of the businesses. Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed. For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, the Company will recognize an impairment loss for the amount by which the carrying amount exceeds the fair value. The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s annual review at October 31, 2018, and its interim review for indicators of impairment as of December 31, 2018, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying amount. Other intangible assets are recognized separately from goodwill and are amortized over their estimated useful lives. See Note 6, Goodwill and Other Intangible Assets, |
Share-Based Compensation | Share-Based Compensation — In periods prior to the Separation, RRD maintained an incentive share-based compensation program for the benefit of its officers, directors, and certain employees, including certain DFIN employees. For those periods share-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of compensation expense to RRD’s corporate and shared functional employees. Subsequent to the Separation, the Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options, restricted stock units (“RSUs”), performance-based restricted stock and performance share units (“PSUs”). The Company recognizes compensation expense for RSUs and PSUs expected to vest on a straight-line basis over the requisite service period of the award. The Company recognizes compensation expense for performance based restricted stock awards granted in 2016 utilizing a graded vesting schedule. Compensation expense for performance based restricted stock awards granted in 2017, which cliff vest, is recognized on a straight-line basis. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period of the award. See Note 17, Share-Based Compensation, |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans — Prior to the Separation, RRD provided pension and other postretirement healthcare benefits to certain current and former employees of DFIN. DFIN’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in DFIN. On October 1, 2016, DFIN recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. DFIN engages outside actuaries to assist in the determination of the obligations and costs under these plans. The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effects of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. Refer to Note 13, Retirement Plans |
Taxes on Income | Taxes on Income - In the Company’s combined financial statements prior to Separation, income tax expense and deferred tax balances were calculated on a separate income tax return basis although the Company’s operations have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. As a standalone entity, the Company will file tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in historical periods. Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company maintains an income taxes payable or receivable account in each jurisdiction and, with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances with the RRD tax paying entities in the respective jurisdictions. The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not ( i.e., Income Taxes, |
Commitments and Contingencies | Commitments and Contingencies - The Company is subject to lawsuits, investigations and other claims related to environmental, employment, commercial and other matters, as well as preference claims related to amounts received from customers and others prior to their seeking bankruptcy protection. Periodically, the Company reviews the status of each significant matter and assesses potential financial exposure. See Note 12, , for further discussion. |
Restructuring | Restructuring - The Company records restructuring charges when liabilities are incurred as part of a plan approved by management with the appropriate level of authority for the elimination of duplicative functions, the closure of facilities, or the exit of a line of business, generally in order to reduce the Company’s overall cost structure. See Note 5, , for further discussion. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Disaggregation of Revenue by Reporting Unit and Timing of Revenue Recognition | The following tables disaggregates revenue by reporting unit and timing of revenue recognition for the year ended December 31, 2018: Year Ended December 31, 2018 Point in time Over time Total U.S. Capital Markets $ 358.9 $ 97.1 $ 456.0 Investment Markets 291.6 50.5 342.1 Language Solutions 13.7 — 13.7 Total U.S. 664.2 147.6 811.8 International 132.2 19.0 151.2 Total net sales $ 796.4 $ 166.6 $ 963.0 |
Changes in Contract Liabilities | Contract liabilities consist of deferred revenue and progress billings which are included in accrued liabilities on the consolidated balance sheet. Changes in contract liabilities were as follows: Balance at January 1, 2018 $ 14.2 Deferral of revenue 47.1 Revenue recognized (47.9 ) Disposition (1.6 ) Acquisition 0.2 Balance at December 31, 2018 $ 12.0 |
ASU 2014-09 | |
Impact of Adoption of ASU on Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet | The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows: Balance at December 31, 2017 Adoption of ASU 2014-09 Balance at January 1, 2018 Assets Receivables, less allowances for doubtful accounts $ 165.2 $ 8.9 $ 174.1 Inventories 23.3 (10.6 ) 12.7 Deferred income taxes 22.2 (0.5 ) 21.7 Total assets 893.5 (2.2 ) 891.3 Liabilities Accrued liabilities 119.2 (3.1 ) 116.1 Equity Retained earnings 8.9 0.9 9.8 Total liabilities and equity $ 893.5 $ (2.2 ) $ 891.3 The impact of the adoption of ASU 2014-09 on the Company’s consolidated statement of operations for the year ended December 31, 2018 and consolidated balance sheet as of December 31, 2018 was as follows: Year Ended December 31, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Services net sales $ 618.1 $ (0.1 ) $ 618.0 Products net sales 345.0 — 345.0 Total net sales 963.1 (0.1 ) 963.0 Services cost of sales (exclusive of depreciation and amortization) 329.4 (0.6 ) 328.8 Products costs of sales (exclusive of depreciation and amortization) 258.5 — 258.5 Total cost of sales 587.9 (0.6 ) 587.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) 258.2 — 258.2 Income tax expense 28.9 0.2 29.1 Net earnings $ 73.3 $ 0.3 $ 73.6 Earnings per share Basic 2.17 0.01 2.18 Diluted 2.15 0.01 2.16 December 31, 2018 Previous Revenue Standard Adoption of ASU 2014-09 As Reported Assets Receivables, less allowances for doubtful accounts $ 164.4 $ 8.5 $ 172.9 Inventories 22.0 (9.9 ) 12.1 Deferred income taxes 10.3 (0.6 ) 9.7 Total assets 870.7 (2.0 ) 868.7 Liabilities Accrued liabilities 129.2 (3.2 ) 126.0 Equity Retained earnings 93.1 1.2 94.3 Total liabilities and equity $ 870.7 $ (2.0 ) 868.7 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
eBrevia | |
Acquisitions And Dispositions [Line Items] | |
Schedule of Preliminary Purchase Price Allocation for Acquisition | Based on the current valuation, the preliminary purchase price allocation for this acquisition is as follows: Accounts receivable $ 0.3 Other intangible assets 11.4 Software 0.8 Goodwill 12.8 Accounts payable and accrued liabilities (0.4 ) Deferred taxes-net (1.7 ) Total purchase price-net of cash acquired 23.2 Less: fair value of the Company's previously held investment in eBrevia (3.3 ) Less: fair value of contingent consideration (0.8 ) Less: payable for initial consideration (4.1 ) Less: amounts held in escrow and liabilities assumed (2.5 ) Net cash paid $ 12.5 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations | Employee Other Restructuring Total Restructuring Other 2018 Terminations Charges Charges Charges Total U.S. $ 1.0 $ 0.8 $ 1.8 $ 0.2 $ 2.0 International 1.8 — 1.8 — 1.8 Corporate 0.6 — 0.6 — 0.6 Total $ 3.4 $ 0.8 $ 4.2 $ 0.2 $ 4.4 Employee Other Restructuring Total Restructuring Other 2017 Terminations Charges Charges Impairment Charges Total U.S. $ 3.3 $ 0.2 $ 3.5 $ 0.2 $ 0.2 $ 3.9 International 2.1 0.1 2.2 — — 2.2 Corporate 1.0 — 1.0 — — 1.0 Total $ 6.4 $ 0.3 $ 6.7 $ 0.2 $ 0.2 $ 7.1 Employee Other Restructuring Total Restructuring Other 2016 Terminations Charges Charges Charges Total U.S. $ 3.0 $ 1.5 $ 4.5 $ 0.2 $ 4.7 International 0.6 — 0.6 — 0.6 Corporate 0.1 — 0.1 — 0.1 Total $ 3.7 $ 1.5 $ 5.2 $ 0.2 $ 5.4 |
Schedule of Changes in the Restructuring Reserve | The restructuring reserve as of December 31, 2018 and 2017, and changes during the year ended December 31, 2018, were as follows: December 31, Restructuring Foreign Exchange and Cash December 31, 2017 Charges Reversals Other Paid 2018 Employee terminations $ 1.3 $ 3.6 $ (0.2 ) $ — $ (4.3 ) $ 0.4 Lease terminations and other 2.1 0.8 — — (1.6 ) 1.3 Total $ 3.4 $ 4.4 $ (0.2 ) $ — $ (5.9 ) $ 1.7 The restructuring reserve as of December 31, 2017 and 2016, and changes during the year ended December 31, 2017, were as follows: December 31, Restructuring Foreign Exchange and Cash December 31, 2016 Charges Reversals Other Paid 2017 Employee terminations $ 1.6 $ 6.5 $ (0.1 ) $ — $ (6.7 ) $ 1.3 Lease terminations and other 3.8 3.7 (3.4 ) 0.3 (2.3 ) 2.1 Total $ 5.4 $ 10.2 $ (3.5 ) $ 0.3 $ (9.0 ) $ 3.4 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows: U.S. International Total Net book value as of January 1, 2017 $ 429.2 $ 17.2 $ 446.4 Foreign exchange and other adjustments — 1.0 1.0 Net book value as of December 31, 2017 429.2 18.2 447.4 Acquisition 12.8 — 12.8 Disposition (3.5 ) (5.8 ) (9.3 ) Foreign exchange and other adjustments — (0.9 ) (0.9 ) Net book value as of December 31, 2018 $ 438.5 $ 11.5 $ 450.0 |
Components of Other Intangible Assets | The components of other intangible assets at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Customer relationships $ 149.3 $ (113.1 ) $ 36.2 $ 140.6 $ (100.7 ) $ 39.9 Trade names 3.9 (2.9 ) 1.0 2.9 (2.9 ) — Total other intangible assets $ 153.2 $ (116.0 ) $ 37.2 $ 143.5 $ (103.6 ) $ 39.9 |
Schedule of Additions to Other Intangible Assets | During the year ended December 31, 2018, the Company recorded the following additions to other intangible assets: December 31, 2018 Amount Amortization Period Customer relationships $ 10.4 15.0 Trade name 1.0 5.0 Total $ 11.4 |
Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets | The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2018: For the year ending December 31, Amount 2019 $ 14.6 2020 13.0 2021 0.9 2022 0.9 2023 0.9 2024 and thereafter 6.9 Total $ 37.2 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Transactions Affecting Allowance for Doubtful Accounts | Transactions affecting the allowances for doubtful accounts receivable during the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance, beginning of year $ 7.3 $ 6.4 $ 4.6 Provisions charged to expense 4.9 3.9 3.1 Write-offs and other (4.3 ) (3.0 ) (1.3 ) Balance, end of year $ 7.9 $ 7.3 $ 6.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2018 and 2017 were as follows: 2018 2017 Raw materials and manufacturing supplies $ 4.0 $ 3.3 Work in process 8.1 13.7 Finished goods — 6.3 Total $ 12.1 $ 23.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Company's Property, Plant and Equipment | The components of the Company’s property, plant and equipment at December 31, 2018 and 2017 were as follows: 2018 2017 Land $ 10.0 $ 10.0 Buildings 36.2 36.1 Machinery and equipment 106.3 104.0 152.5 150.1 Less: Accumulated depreciation (120.3 ) (115.4 ) Total $ 32.2 $ 34.7 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Realized and Unrealized Gains and Losses on Equity Investments Recognized in Investment and Other Income in Consolidated Statements of Operations | The following table summarizes realized and unrealized gains and losses on equity investments recognized in investment and other income in the consolidated statements of operations during the year ended December 31, 2018: Year ended December 31, 2018 Net gain on equity securities $ 11.8 Less: net gain recognized on equity securities sold (2.4 ) Unrealized net gain recognized on equity securities still held at the reporting date $ 9.4 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
Components of Accrued Liabilities | The components of the Company’s accrued liabilities at December 31, 2018 and 2017 were as follows: 2018 2017 Employee-related liabilities $ 63.3 $ 68.9 Customer-related liabilities 16.1 22.9 Income taxes payable 12.4 1.6 Accrued interest payable 5.8 6.4 Restructuring liabilities 1.4 2.7 Other 27.0 16.7 Total accrued liabilities $ 126.0 $ 119.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Operating Lease | Future minimum rental commitments under operating leases are as follows: Year Ended December 31 Amount 2019 $ 26.4 2020 22.6 2021 16.6 2022 10.9 2023 8.7 2024 and thereafter 16.3 $ 101.5 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Estimated Net Pension Plan Income | The components of the estimated net pension plan income for DFIN’s pension plans for the years ended December 31, 2018, 2017 and 2016 were as follows: Pension Benefits 2018 2017 2016 Interest cost $ 10.3 $ 10.6 $ 2.4 Expected return on plan assets (16.0 ) (16.0 ) (4.1 ) Amortization of actuarial loss 2.5 2.1 0.7 Net periodic benefit income $ (3.2 ) $ (3.3 ) $ (1.0 ) Weighted average assumption used to calculate net periodic benefit expense: Discount rate 3.7 % 4.2 % 3.7 % Expected return on plan assets 6.8 % 7.0 % 7.3 % |
Reconciliation of Funded Status | Reconciliation of funded status Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Benefit obligation at beginning of year $ 309.9 $ 293.3 $ 1.2 $ 1.2 Interest cost 10.3 10.6 — — Actuarial (gain) loss (25.8 ) 22.9 — — Foreign currency translation — — (0.1 ) 0.1 Benefits paid (14.0 ) (16.9 ) (0.1 ) (0.1 ) Benefit obligation at end of year $ 280.4 $ 309.9 $ 1.0 $ 1.2 Fair value of plan assets at beginning of year $ 256.4 $ 235.8 $ — $ — Actual return on assets (15.3 ) 36.1 — — Employer contributions 1.8 2.1 0.1 0.1 Plan transfer — (0.7 ) — — Benefits paid (14.0 ) (16.9 ) (0.1 ) (0.1 ) Fair value of plan assets at end of year $ 228.9 $ 256.4 $ — $ — Funded status at end of year $ (51.5 ) $ (53.5 ) $ (1.0 ) $ (1.2 ) |
Amount Recognized on Consolidated and Combined Balance Sheets | Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Accrued benefit cost (included in accrued liabilities) $ (1.2 ) $ (2.2 ) $ — $ — Pension and other postretirement benefits plan liabilities (50.3 ) (51.3 ) (1.0 ) (1.2 ) Net liabilities recognized in the Consolidated Balance Sheets $ (51.5 ) $ (53.5 ) $ (1.0 ) $ (1.2 ) |
Amounts in Accumulated Other Comprehensive Loss | The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets excluding tax effects, that have not been recognized as components of net periodic cost at December 31, 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Accumulated other comprehensive (loss) income Net actuarial (loss) gain $ (90.7 ) $ (87.6 ) $ 0.1 $ 0.1 Total $ (90.7 ) $ (87.6 ) $ 0.1 $ 0.1 |
Amounts Recognized in Other Comprehensive Income (Loss) | The pre-tax amounts recognized in other comprehensive income (loss) in 2018, 2017, and 2016 as components of net periodic costs were as follows: Pension Benefits 2018 2017 2016 Amortization of: Net actuarial loss $ 2.5 $ 2.1 $ 0.7 Amounts arising during the period: Net actuarial loss (5.6 ) (2.7 ) 10.9 Total $ (3.1 ) $ (0.6 ) $ 11.6 |
Schedule of Accumulated Other Comprehensive Loss Expected to Recognized as Components of Net Periodic Benefit Costs | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2019 are shown below: Pension Benefits Amortization of: Net actuarial loss $ 1.7 Total $ 1.7 |
Weighted Average Assumptions Used to Determine Benefit Obligation | The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Discount rate 4.4 % 3.7 % 3.5 % 3.3 % |
Summary of Projected Benefit Obligations in Excess of Plan Assets | The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2018 and 2017: Pension Benefits 2018 2017 Projected benefit obligation $ 280.4 $ 309.9 Fair value of plan assets 228.9 256.4 |
Expected Benefit Payments | Benefit payments are expected to be paid as follows: Pension Benefits Other Postretirement Benefits 2019 $ 16.1 $ 0.1 2020 17.5 0.1 2021 17.4 0.1 2022 18.9 0.1 2023 18.1 0.1 2024-2028 91.8 0.4 |
Allocation of Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2018 and 2017, by asset category were as follows: December 31, 2018 Asset Category Total Level 1 Level 2 Cash and cash equivalents $ 1.5 $ 1.2 $ 0.3 Real estate funds 9.5 — 9.5 Assets measured at NAV 217.9 — — Total $ 228.9 $ 1.2 $ 9.8 December 31, 2017 Asset Category Total Level 1 Level 2 Cash and cash equivalents $ 7.0 $ 3.2 $ 3.8 Equity 63.5 63.5 — Fixed income 87.1 — 87.1 Assets measured at NAV 98.8 — — Total $ 256.4 $ 66.7 $ 90.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings from Operations Before Income Taxes | Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 U.S. $ 69.3 $ 49.1 $ 84.9 Foreign 33.4 7.1 9.4 Total $ 102.7 $ 56.2 $ 94.3 |
Components of Income Tax Expense (Benefit) from Operations | The components of income tax expense (benefit) from operations for the years ended December 31, 2018 , 201 7 and 201 6 were as follows: 2018 2017 2016 Current: U.S. Federal $ 6.9 $ 12.5 $ 28.6 U.S. State and Local 5.3 5.1 9.0 Foreign 6.3 3.4 3.5 Current income tax expense 18.5 21.0 41.1 Non-Current: U.S. Federal 0.1 12.5 — U.S. State and Local — 0.6 — Non-current income tax expense 0.1 13.1 — Deferred: U.S. Federal 6.8 13.3 (3.1 ) U.S. State and Local 2.9 (0.1 ) (0.4 ) Foreign 0.8 (0.8 ) (2.4 ) Deferred income tax expense (benefit) 10.5 12.4 (5.9 ) Total $ 29.1 $ 46.5 $ 35.2 |
Reconciliation of Differences Between U.S Federal Statutory and Effective Income Tax Rate | The following table outlines the reconciliation of differences between the U.S. Federal statutory tax rate and the Company’s worldwide effective income tax rate: 2018 2017 2016 Federal statutory tax rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of U.S. federal income tax benefit 6.5 5.7 5.9 Global intangible low-taxed income provision 2.0 — — Non-deductible expenses 1.9 3.6 — Foreign tax rate differential 1.1 (1.3 ) (0.7 ) Changes in valuation allowances 0.5 0.5 (1.9 ) Adjustment of uncertain tax positions and interest 0.2 (0.4 ) 0.6 Federal and state transition tax on foreign earnings 0.1 25.3 — Domestic manufacturing deduction — (0.7 ) (1.3 ) Tax exempt income and expense (2.9 ) — — Tax Act revaluation of U.S. net deferred tax assets (2.2 ) 14.8 — Credits and incentives (1.3 ) — — Other 1.4 0.2 (0.3 ) Effective income tax rate 28.3 % 82.7 % 37.3 % |
Significant Deferred Tax Assets and Liabilities | The significant deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows: 2018 2017 Deferred tax assets: Pension and other postretirement benefit plans liabilities $ 15.1 $ 15.9 Net operating losses and other tax carryforwards 9.1 10.1 Accrued liabilities 12.2 11.9 Share-based compensation 3.0 2.9 Allowance for doubtful accounts 2.2 2.5 Interest 1.4 — Other 0.9 1.2 Total deferred tax assets 43.9 44.5 Valuation allowances (2.1 ) (1.5 ) Total deferred tax assets $ 41.8 $ 43.0 Deferred tax liabilities: Accelerated depreciation $ (12.3 ) $ (6.8 ) Other intangible assets (12.6 ) (12.8 ) Investments (3.1 ) — Prepaid assets (1.4 ) — Lease obligations (1.3 ) — Other (1.6 ) (1.6 ) Total deferred tax liabilities (32.3 ) (21.2 ) Net deferred tax assets $ 9.5 $ 21.8 |
Transactions Affecting Valuation Allowance On Deferred Tax Assets | The amounts above are included in the Consolidated Balance Sheets as either a net asset or liability on a jurisdiction by jurisdiction basis. Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance, beginning of year $ 1.5 $ 1.2 $ 4.9 Current year expense (benefit)-net 0.7 0.3 (1.5 ) Write-offs — — (2.3 ) Foreign exchange and other (0.1 ) — 0.1 Balance, end of year $ 2.1 $ 1.5 $ 1.2 |
Unrecognized Tax Benefits | Changes in the Company’s unrecognized tax benefits at December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance at beginning of year $ 0.3 $ 1.9 $ 1.0 Additions for tax positions of the current year 0.2 — — Additions for tax positions of prior years 0.1 — 0.9 Settlements during the year (0.1 ) (1.4 ) — Releases (0.2 ) (0.2 ) — Balance at end of year $ 0.3 $ 0.3 $ 1.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of the Company's Debt | The Company’s debt as of December 31, 2018 and 2017 consisted of the following: December 31, December 31, 2018 2017 8.25% senior notes due October 15, 2024 $ 300.0 $ 300.0 Term Loan Credit Facility 71.3 168.6 Borrowings under the Revolving Facility — — Unamortized debt issuance costs (8.6 ) (10.3 ) Total debt 362.7 458.3 Less: current portion — — Long-term debt $ 362.7 $ 458.3 |
Schedule of Future Maturities of Debt | At December 31, 2018, the future maturities of debt were as follows: Amount 2019 $ — 2020 — 2021 — 2022 — 2023 72.5 2024 and thereafter 300.0 Total (a) $ 372.5 (a) Excludes unamortized debt issuance costs of $8.6 million and a discount of $1.2 million which do not represent contractual commitments with a fixed amount or maturity date. |
Summary of Interest Expense | The following table summarizes interest expense included in the Consolidated and Combined Statements of Operations: 2018 2017 2016 Interest incurred $ 37.1 $ 43.5 $ 12.2 Less: interest capitalized as property, plant and equipment (0.4 ) (0.6 ) (0.5 ) Interest expense, net $ 36.7 $ 42.9 $ 11.7 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards | The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2018, 2017 and 2016, were as follows. 2018 2017 2016 Net earnings per share: Basic $ 2.18 $ 0.29 $ 1.81 Diluted $ 2.16 $ 0.29 $ 1.80 Numerator: Net earnings $ 73.6 $ 9.7 $ 59.1 Denominator: Weighted average number of common shares outstanding 33.8 33.1 32.6 Dilutive awards 0.2 0.2 0.2 Diluted weighted average number of common shares outstanding 34.0 33.3 32.8 Weighted average number of anti-dilutive share-based awards: Restricted stock units 0.3 0.2 0.2 Stock options 0.6 0.3 0.2 Total 0.9 0.5 0.4 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation [Abstract] | |
Summary of Weighted-Average Assumptions Used to Determine Weighted-Average Fair Market Value of Stock Options Granted | The weighted-average assumptions used to determine the weighted-average fair market value of the stock options granted during the years ended December 31, 2018 and December 31, 2017 were as follows: 2018 2017 Expected volatility 27.75 % 30.71 % Risk-free interest rate 2.71 % 2.17 % Expected life (years) 6.25 6.25 Expected dividend yield 0.00 % 0.00 % |
Summary of Stock Option Awards Outstanding | Stock outstanding Weighted Average Weighted Remaining Aggregate Shares Under Average Contractual Intrinsic Option Exercise Term Value (thousands) Price (years) (millions) Outstanding at December 31, 2017 459 $ 22.13 5.1 $ 0.8 Granted 324 17.91 9.2 Exercised (104 ) 11.95 Cancelled/forfeited/expired (44 ) 24.92 Outstanding at December 31, 2018 635 21.44 7.2 — Vested and expected to vest at December 31, 2018 607 21.54 7.1 — Exercisable at December 31, 2018 — N/A N/A N/A |
Summary of Nonvested Restricted Stock Unit Awards | Nonvested Weighted Shares Average Grant (Thousands) Date Fair Value Nonvested at December 31, 2017 598 $ 23.48 Granted 456 17.53 Vested (278 ) Forfeited (76 ) Nonvested at December 31, 2018 700 $ 19.60 |
Summary of Nonvested Performance Share Units | Nonvested Weighted Shares Average Grant (Thousands) Date Fair Value Nonvested at December 31, 2017 37 $ 22.41 Granted 232 17.65 Forfeited (18 ) Nonvested at December 31, 2018 251 $ 18.23 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive (Loss) Income and Income Tax Expense Allocated to Each Component | The components of other comprehensive income and income tax expense allocated to each component for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Before Tax Income Tax Net of Tax Amount Expense Amount Amount Expense Amount Amount Expense Amount Translation adjustments $ (5.0 ) $ — $ (5.0 ) $ 4.4 $ — $ 4.4 $ (0.1 ) $ — $ (0.1 ) Adjustment for net periodic pension plan and other postretirement benefits plan cost (3.1 ) (0.9 ) (2.2 ) (0.6 ) 0.1 (0.7 ) 11.9 4.8 7.1 Other comprehensive income $ (8.1 ) $ (0.9 ) $ (7.2 ) $ 3.8 $ 0.1 $ 3.7 $ 11.8 $ 4.8 $ 7.0 |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2018, 2017 and 2016: Pension and Other Postretirement Benefits Plan Cost Translation Adjustments Total Balance at January 1, 2016 $ — $ (16.0 ) $ (16.0 ) Other comprehensive income (loss) before reclassifications 6.7 (0.1 ) 6.6 Amounts reclassified from accumulated other comprehensive loss 0.4 — 0.4 Transfer of pension plan to parent company, net (59.3 ) — (59.3 ) Net change in accumulated other comprehensive loss (52.2 ) (0.1 ) (52.3 ) Balance at December 31, 2016 $ (52.2 ) $ (16.1 ) $ (68.3 ) Other comprehensive (loss) income before reclassifications (2.1 ) 4.4 2.3 Amounts reclassified from accumulated other comprehensive loss 1.4 — 1.4 Net change in accumulated other comprehensive loss (0.7 ) 4.4 3.7 Balance at December 31, 2017 $ (52.9 ) $ (11.7 ) $ (64.6 ) Other comprehensive (loss) income before reclassifications (4.0 ) (5.0 ) (9.0 ) Amounts reclassified from accumulated other comprehensive loss 1.8 — 1.8 Amounts reclassified in accordance with ASU 2018-02 (10.9 ) — (10.9 ) Net change in accumulated other comprehensive loss (13.1 ) (5.0 ) (18.1 ) Balance at December 31, 2018 $ (66.0 ) $ (16.7 ) $ (82.7 ) |
Reclassifications from Accumulated Other Comprehensive Loss, Amortization of Pension Plan Cost | Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 were as follows: Classification in the Consolidated and Combined 2018 2017 2016 Statements of Operations Amortization of pension and other postretirement benefits plan cost: Net actuarial loss $ 2.5 $ 2.1 $ 0.7 (a) Reclassifications before tax 2.5 2.1 0.7 Income tax expense 0.7 0.7 0.3 Reclassifications, net of tax $ 1.8 $ 1.4 $ 0.4 (a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to DFIN in periods prior to the Separation, and recognized in investment and other income in the consolidated and combined statements of operations (see Note 13, Retirement Plans |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated financial statements. Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2018 U.S. $ 821.0 $ (9.2 ) $ 811.8 $ 134.0 $ 681.9 $ 39.6 $ 34.8 International 153.2 (2.0 ) 151.2 31.6 77.6 5.7 1.2 Total operating segments 974.2 (11.2 ) 963.0 165.6 759.5 45.3 36.0 Corporate — — — (44.5 ) 109.2 0.5 1.1 Total operations $ 974.2 $ (11.2 ) $ 963.0 $ 121.1 $ 868.7 $ 45.8 $ 37.1 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2017 U.S. $ 856.6 $ (8.7 ) $ 847.9 $ 127.6 $ 664.7 $ 38.2 $ 24.7 International 160.8 (3.8 ) 157.0 7.2 90.4 6.3 1.4 Total operating segments 1,017.4 (12.5 ) 1,004.9 134.8 755.1 44.5 26.1 Corporate — — — (39.1 ) 138.4 — 1.7 Total operations $ 1,017.4 $ (12.5 ) $ 1,004.9 $ 95.7 $ 893.5 $ 44.5 $ 27.8 Income Depreciation Total Intersegment Net from Assets of and Capital Sales Sales Sales Operations Operations Amortization Expenditures Year ended December 31, 2016 U.S. $ 852.6 $ (7.4 ) $ 845.2 $ 118.4 $ 672.2 $ 34.5 $ 20.5 International 142.9 (4.6 ) 138.3 8.8 93.7 4.6 2.6 Total operating segments 995.5 (12.0 ) 983.5 127.2 765.9 39.1 23.1 Corporate — — — (22.2 ) 213.0 4.2 3.1 Total operations $ 995.5 $ (12.0 ) $ 983.5 $ 105.0 $ 978.9 $ 43.3 $ 26.2 |
Schedule of Corporate Assets | Corporate assets primarily consisted of the following items at December 31, 2018 and 2017: 2018 2017 Software, net $ 46.9 $ 40.6 Cash and cash equivalents 27.2 43.0 Deferred income tax assets, net of valuation allowances 9.1 18.7 |
Geographic Area and Products _2
Geographic Area and Products and Services Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales and Long-lived Assets by Geographic Region | The table below presents net sales and long-lived assets by geographic region for the years ended December 31, 2018, 2017 and 2016. U.S. Europe Asia Canada Other Consolidated 2018 Net sales $ 811.8 $ 59.7 $ 55.5 $ 33.4 $ 2.6 $ 963.0 Long-lived assets (a) 117.2 3.1 2.4 0.1 — 122.8 2017 Net sales $ 847.9 $ 70.6 $ 47.2 $ 36.0 $ 3.2 $ 1,004.9 Long-lived assets (a) 107.2 4.5 1.6 0.6 — 113.9 2016 Net sales $ 845.2 $ 62.4 $ 39.2 $ 32.1 $ 4.6 $ 983.5 Long-lived assets (a) 107.4 3.1 0.6 0.5 — 111.6 (a) Includes net property, plant and equipment, net software and other noncurrent assets. |
Summary of Net Sales for Services and Products | The following table summarizes net sales for services and products for the years ended December 31, 2018, 2017 and 2016. 2018 Net Sales 2017 Net Sales 2016 Net Sales Capital Markets $ 408.3 $ 396.7 $ 387.6 Investment Markets* 167.4 164.0 144.4 Language Solutions* 42.3 71.4 66.6 Total services 618.0 632.1 598.6 Investment Markets* $ 194.0 $ 217.9 $ 216.4 Capital Markets 151.0 154.9 168.5 Language Solutions* — — — Total products 345.0 372.8 384.9 Total net sales $ 963.0 $ 1,004.9 $ 983.5 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Allocation of Expenses Reflected in Condensed Consolidated and Combined Financial Statements | These allocations were reflected as follows in the consolidated and combined financial statements: 2016 Costs of goods sold allocation $ 28.0 Selling, general and administrative allocation 129.4 Depreciation and amortization 15.2 Total allocations from RRD $ 172.6 |
Guarantor Financial Informati_2
Guarantor Financial Information - (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information Consolidating Statements of Operations | Consolidating Statements of Operations Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 508.0 $ 116.4 $ (6.4 ) $ 618.0 Products net sales — 313.0 36.8 (4.8 ) 345.0 Total net sales — 821.0 153.2 (11.2 ) 963.0 Services cost of sales (exclusive of depreciation and amortization) — 258.4 76.6 (6.2 ) 328.8 Products cost of sales (exclusive of depreciation and amortization) — 236.7 26.8 (5.0 ) 258.5 Total cost of sales — 495.1 103.4 (11.2 ) 587.3 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 220.0 38.2 — 258.2 Restructuring, impairment and other charges-net — 2.6 1.8 — 4.4 Depreciation and amortization — 40.1 5.7 — 45.8 Other operating income — (26.6 ) (27.2 ) — (53.8 ) Income from operations — 89.8 31.3 — 121.1 Interest expense (income)-net 37.6 (0.3 ) (0.6 ) — 36.7 Intercompany interest (income) expense - net (25.5 ) 25.6 (0.1 ) — — Investment and other income-net — (16.9 ) (1.4 ) — (18.3 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (12.1 ) 81.4 33.4 — 102.7 Income tax (benefit) expense (5.9 ) 27.9 7.1 — 29.1 Earnings (loss) before equity in net income of subsidiaries (6.2 ) 53.5 26.3 — 73.6 Equity in net income of subsidiaries 79.8 26.3 — (106.1 ) — Net earnings (loss) $ 73.6 $ 79.8 $ 26.3 $ (106.1 ) $ 73.6 Comprehensive income (loss) $ 66.4 $ 72.6 $ 21.3 $ (93.9 ) $ 66.4 Consolidating Statements of Operations Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 518.5 $ 121.7 $ (8.1 ) $ 632.1 Products net sales — 338.1 39.1 (4.4 ) 372.8 Total net sales — 856.6 160.8 (12.5 ) 1,004.9 Services cost of sales (exclusive of depreciation and amortization) — 257.3 78.8 (7.4 ) 328.7 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 18.4 1.1 — 19.5 Products cost of sales (exclusive of depreciation and amortization) — 221.5 24.5 (5.1 ) 240.9 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)* — 30.1 2.2 — 32.3 Total cost of sales — 527.3 106.6 (12.5 ) 621.4 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 197.4 38.8 — 236.2 Restructuring, impairment and other charges-net — 4.9 2.2 — 7.1 Depreciation and amortization — 38.2 6.3 — 44.5 Income from operations — 88.8 6.9 — 95.7 Interest expense (income) -net 43.1 (0.1 ) (0.1 ) — 42.9 Investment and other income-net — (3.3 ) (0.1 ) — (3.4 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (43.1 ) 92.2 7.1 — 56.2 Income tax (benefit) expense (16.7 ) 60.6 2.6 — 46.5 Earnings (loss) before equity in net income of subsidiaries (26.4 ) 31.6 4.5 — 9.7 Equity in net income of subsidiaries 36.1 4.5 — (40.6 ) — Net earnings (loss) $ 9.7 $ 36.1 $ 4.5 $ (40.6 ) $ 9.7 Comprehensive income (loss) $ 13.4 $ 39.8 $ 8.9 $ (48.7 ) $ 13.4 *Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. Consolidating Statements of Operations Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Services net sales $ — $ 502.2 $ 104.1 $ (7.7 ) $ 598.6 Products net sales — 350.4 38.8 (4.3 ) 384.9 Total net sales — 852.6 142.9 (12.0 ) 983.5 Services cost of sales (exclusive of depreciation and amortization) — 236.0 68.2 (7.1 ) 297.1 Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) — 35.6 2.2 — 37.8 Products cost of sales (exclusive of depreciation and amortization) — 207.0 24.1 (4.9 ) 226.2 Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization) — 57.3 0.6 — 57.9 Total cost of sales — 535.9 95.1 (12.0 ) 619.0 Selling, general and administrative expenses (exclusive of depreciation and amortization) — 177.0 33.8 — 210.8 Restructuring, impairment and other charges-net — 4.8 0.6 — 5.4 Depreciation and amortization — 38.6 4.7 — 43.3 Income from operations — 96.3 8.7 — 105.0 Interest expense-net 11.7 — — — 11.7 Investment and other income-net — (0.2 ) (0.8 ) — (1.0 ) Earnings (loss) before income taxes and equity in net income of subsidiaries (11.7 ) 96.5 9.5 — 94.3 Income tax (benefit) expense (4.3 ) 38.5 1.0 — 35.2 Earnings (loss) before equity in net income of subsidiaries (7.4 ) 58.0 8.5 — 59.1 Equity in net income of subsidiaries 66.5 8.5 — (75.0 ) — Net earnings (loss) $ 59.1 $ 66.5 $ 8.5 $ (75.0 ) $ 59.1 Comprehensive income (loss) $ 66.1 $ 73.5 $ 8.6 $ (82.1 ) $ 66.1 |
Guarantor Financial Information Consolidating Balance Sheet | Consolidating Balance Sheet December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 24.9 $ 5.0 $ 17.4 $ — $ 47.3 Receivables, less allowances — 141.6 31.3 — 172.9 Intercompany receivables — 123.6 — (123.6 ) — Intercompany short-term note receivable-net — — 60.5 (60.5 ) — Inventories — 10.4 1.7 — 12.1 Prepaid expenses and other current assets — 13.5 3.2 — 16.7 Total current assets 24.9 294.1 114.1 (184.1 ) 249.0 Property, plant and equipment-net — 29.3 2.9 — 32.2 Software-net — 47.8 — — 47.8 Goodwill — 438.5 11.5 — 450.0 Other intangible assets-net — 32.6 4.6 — 37.2 Deferred income taxes — 37.2 2.4 (29.9 ) 9.7 Intercompany long-term note receivable 298.0 — — (298.0 ) — Other noncurrent assets 3.6 35.1 4.1 — 42.8 Investments in consolidated subsidiaries 445.9 106.0 — (551.9 ) — Total assets $ 772.4 $ 1,020.6 $ 139.6 $ (1,063.9 ) $ 868.7 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 61.0 $ 11.4 $ — $ 72.4 Intercompany payables 120.9 — 2.7 (123.6 ) — Intercompany short-term note payable-net 60.0 0.5 — (60.5 ) — Accrued liabilities 0.1 109.2 16.7 — 126.0 Total current liabilities 181.0 170.7 30.8 (184.1 ) 198.4 Long-term debt 362.7 — — — 362.7 Intercompany long-term note payable — 298.0 — (298.0 ) — Deferred compensation liabilities — 19.5 — — 19.5 Pension and other postretirement benefits plan liabilities — 50.3 1.0 — 51.3 Other noncurrent liabilities 2.7 36.2 1.8 (29.9 ) 10.8 Total liabilities 546.4 574.7 33.6 (512.0 ) 642.7 Total equity 226.0 445.9 106.0 (551.9 ) 226.0 Total liabilities and equity $ 772.4 $ 1,020.6 $ 139.6 $ (1,063.9 ) $ 868.7 Consolidating Balance Sheet December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Receivables, less allowances — 131.3 33.9 — 165.2 Intercompany receivables — 146.4 — (146.4 ) — Intercompany short-term note receivable-net — — 30.0 (30.0 ) — Inventories — 21.3 2.0 — 23.3 Prepaid expenses and other current assets 37.1 14.8 2.8 (25.1 ) 29.6 Total current assets 45.4 341.7 84.5 (201.5 ) 270.1 Property, plant and equipment-net — 31.2 3.5 — 34.7 Software-net — 40.6 0.5 — 41.1 Goodwill — 429.2 18.2 — 447.4 Other intangible assets-net — 32.4 7.5 — 39.9 Deferred income taxes — 40.5 3.4 (21.7 ) 22.2 Other noncurrent assets 3.4 30.0 4.7 — 38.1 Investments in consolidated subsidiaries 728.4 85.2 — (813.6 ) — Total assets $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ — $ 57.9 $ 9.9 $ — $ 67.8 Intercompany payable 139.5 — 6.9 (146.4 ) — Intercompany short-term note payable-net 30.0 — — (30.0 ) — Accrued liabilities — 127.6 16.7 (25.1 ) 119.2 Total current liabilities 169.5 185.5 33.5 (201.5 ) 187.0 Long-term debt 458.3 — — — 458.3 Deferred compensation liabilities — 22.8 — — 22.8 Pension and other postretirement benefits plan liabilities — 51.3 1.2 — 52.5 Other noncurrent liabilities — 42.8 2.4 (21.7 ) 23.5 Total liabilities 627.8 302.4 37.1 (223.2 ) 744.1 Total equity 149.4 728.4 85.2 (813.6 ) 149.4 Total liabilities and equity $ 777.2 $ 1,030.8 $ 122.3 $ (1,036.8 ) $ 893.5 |
Guarantor Financial Information Consolidating Statements of Cash Flows | Consolidating Statements of Cash Flows Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 85.9 $ (12.0 ) $ (7.6 ) $ 66.3 INVESTING ACTIVITIES Capital expenditures — (35.9 ) (1.2 ) — (37.1 ) Acquisition of business, net of cash acquired — (12.5 ) — — (12.5 ) Sale of investment — 3.1 — — 3.1 Proceeds from disposition — 34.4 43.1 — 77.5 Intercompany note receivable, net — — (30.5 ) 30.5 — Other investing activities — (0.8 ) — — (0.8 ) Net cash provided by (used in) investing activities — (11.7 ) 11.4 30.5 30.2 FINANCING ACTIVITIES Revolving facility borrowings 360.0 — — — 360.0 Payments on revolving facility borrowings (360.0 ) — — — (360.0 ) Payments on long-term debt (97.5 ) — — — (97.5 ) Intercompany note payable, net 29.7 0.8 — (30.5 ) — Proceeds from the issuance of common stock 1.2 — — — 1.2 Treasury stock repurchases (1.5 ) — — — (1.5 ) Debt issuance costs (1.2 ) — (1.2 ) Net cash (used in) provided by financing activities (69.3 ) 0.8 — (30.5 ) (99.0 ) Effect of exchange rate on cash and cash equivalents — — (2.2 ) — (2.2 ) Net increase (decrease) in cash and cash equivalents 16.6 (22.9 ) 1.6 — (4.7 ) Cash and cash equivalents at beginning of year 8.3 27.9 15.8 — 52.0 Cash and cash equivalents at end of period $ 24.9 $ 5.0 $ 17.4 $ — $ 47.3 Supplemental non-cash disclosure: Intercompany debt allocation $ (298.0 ) $ 298.0 $ — $ — $ — Consolidating Statements of Cash Flows Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 39.3 $ 35.7 $ 14.0 $ 2.4 $ 91.4 INVESTING ACTIVITIES Capital expenditures — (26.4 ) (1.4 ) — (27.8 ) Purchase of investment — (3.4 ) — — (3.4 ) Intercompany note receivable, net — — (14.7 ) 14.7 — Other investing activities — 0.2 — — 0.2 Net cash (used in) provided by investing activities — (29.6 ) (16.1 ) 14.7 (31.0 ) FINANCING ACTIVITIES Revolving facility borrowings 298.5 — — — 298.5 Payments on revolving facility borrowings (298.5 ) — — — (298.5 ) Payments on long-term debt (133.0 ) — — — (133.0 ) Debt issuance costs (2.1 ) — — — (2.1 ) Separation-related payment from R.R. Donnelley 68.0 — — — 68.0 Proceeds from the issuance of common stock 18.8 — — — 18.8 Proceeds from issuance of long-term debt 3.1 — — — 3.1 Treasury stock repurchases (0.9 ) — — — (0.9 ) Intercompany note payable, net 14.7 — — (14.7 ) — Other financing activities 0.4 — — — 0.4 Net cash used in financing activities (31.0 ) — — (14.7 ) (45.7 ) Effect of exchange rate on cash and cash equivalents — — 1.1 — 1.1 Net increase (decrease) in cash and cash equivalents 8.3 6.1 (1.0 ) 2.4 15.8 Cash and cash equivalents at beginning of year — 21.8 16.8 (2.4 ) 36.2 Cash and cash equivalents at end of period $ 8.3 $ 27.9 $ 15.8 $ — $ 52.0 Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (1.2 ) $ 103.2 $ 6.4 $ (2.4 ) $ 106.0 INVESTING ACTIVITIES Capital expenditures — (23.6 ) (2.6 ) — (26.2 ) Purchase of investment — (3.5 ) — — (3.5 ) Other investing activities — — 0.4 — 0.4 Net cash (used in) investing activities — (27.1 ) (2.2 ) — (29.3 ) FINANCING ACTIVITIES Proceeds from issuance of long-term debt 348.2 — — — 348.2 Payments on long-term debt (50.0 ) — — — (50.0 ) Net change in short-term debt — — (8.8 ) — (8.8 ) Debt issuance costs (9.3 ) — — — (9.3 ) Net transfers to Parent and affiliates (287.7 ) (54.4 ) 2.0 — (340.1 ) Net cash provided by (used in) financing activities 1.2 (54.4 ) (6.8 ) — (60.0 ) Effect of exchange rate on cash and cash equivalents — — 4.4 — 4.4 Net increase (decrease) in cash and cash equivalents — 21.7 1.8 (2.4 ) 21.1 Cash and cash equivalents at beginning of year — 0.1 15.0 — 15.1 Cash and cash equivalents at end of period $ — $ 21.8 $ 16.8 $ (2.4 ) $ 36.2 Supplemental non-cash disclosure: Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs $ 300.0 $ — $ — $ — $ 300.0 Settlement of intercompany note payable — 29.6 — — 29.6 Accrued debt issuance costs 1.5 — — — 1.5 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | Aug. 04, 2017 | Jun. 21, 2017 | Mar. 28, 2017 | Oct. 01, 2016 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Distribution of common shares during spinoff | 26.2 | |||||||
Percentage of distribution of common shares during spinoff | 80.75% | |||||||
Description of distribution of common shares during spinoff | Holders of RRD common stock received one share of DFIN common stock for every eight shares of RRD common stock held on September 23, 2016. | |||||||
Proceeds from the issuance of common stock | $ 1.2 | $ 18.8 | $ 0 | |||||
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 | |||||
Transition Services Agreements | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Intercompany agreements, description | In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018 or earlier. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitated the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. | |||||||
Term of agreement | 36 months | |||||||
Commercial and Other Arrangements | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Intercompany agreements, description | The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. | |||||||
Term of agreement | 36 months | |||||||
Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Stock issued upon exercise of underwriters options | 32.4 | |||||||
R.R. Donnelley & Sons Company | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Distribution of common shares during spinoff | 26.2 | |||||||
Number of common stock retained | 0.1 | 6.2 | ||||||
Ownership percentage | 19.25% | |||||||
Net pension plan liabilities | $ 68.3 | |||||||
Total benefit plan liability | 317 | |||||||
Decrease to the fair value of plan assets | $ (0.7) | |||||||
Plan assets, fair market value | 248.7 | |||||||
Net other postretirement benefit liability | $ 1.5 | |||||||
RRD and Affiliates | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Total net sales | 8.3 | $ 19.4 | ||||||
Cost of sales | $ 51.8 | $ 95.7 | ||||||
Underwritten Public Offering | R.R. Donnelley & Sons Company | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Number of common stock sold | 0.1 | 6.1 | 6.2 | |||||
Over Allotment Option | R.R. Donnelley & Sons Company | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Proceeds from the issuance of common stock | $ 18.8 | |||||||
Over Allotment Option | R.R. Donnelley & Sons Company | Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Stock issued upon exercise of underwriters options | 0.9 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer | Oct. 01, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Number of single customers comprising more than 10% of consolidated net sales | Customer | 0 | 0 | 0 | ||
Percentage of net sales per customer, maximum | 10.00% | 10.00% | 10.00% | ||
Annual goodwill impairment testing date | --10-31 | ||||
R.R. Donnelley & Sons Company | |||||
Significant Accounting Policies [Line Items] | |||||
Net pension plan liabilities | $ 68.3 | ||||
Total benefit plan liability | 317 | ||||
Plan assets, fair market value | 248.7 | ||||
Decrease to the fair value of plan assets | $ (0.7) | ||||
Net other postretirement benefit liability | $ 1.5 | ||||
Computer Software, Intangible Asset | |||||
Significant Accounting Policies [Line Items] | |||||
Amortization expense related to internally-developed software | $ 24.3 | $ 22.5 | $ 20.5 | ||
Maximum | Computer Software, Intangible Asset | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of computer software | 3 years | ||||
Buildings | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 15 years | ||||
Buildings | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 40 years | ||||
Machinery and Equipment | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 3 years | ||||
Machinery and Equipment | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 15 years | ||||
Leasehold Improvements | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 7 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||
Period due on customer payment upon invoicing | 10 days | |
Contract assets | $ 8.7 | $ 9 |
Invoiced to customers amount that exceeded estimates of standalone selling price | $ 0.7 |
Revenue - Cumulative Effect of
Revenue - Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of ASU (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 172.9 | $ 165.2 | ||
Inventories | 12.1 | 23.3 | ||
Deferred income taxes | 9.7 | 22.2 | ||
Total assets | 868.7 | 893.5 | $ 978.9 | |
LIABILITIES | ||||
Accrued liabilities | 126 | 119.2 | ||
EQUITY | ||||
Retained earnings | 94.3 | 8.9 | ||
Total liabilities and equity | 868.7 | $ 893.5 | ||
ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 174.1 | |||
Inventories | 12.7 | |||
Deferred income taxes | 21.7 | |||
Total assets | 891.3 | |||
LIABILITIES | ||||
Accrued liabilities | 116.1 | |||
EQUITY | ||||
Retained earnings | 9.8 | |||
Total liabilities and equity | 891.3 | |||
Adoption of ASU 2014-09 | ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 8.5 | 8.9 | ||
Inventories | (9.9) | (10.6) | ||
Deferred income taxes | (0.6) | (0.5) | ||
Total assets | (2) | (2.2) | ||
LIABILITIES | ||||
Accrued liabilities | (3.2) | (3.1) | ||
EQUITY | ||||
Retained earnings | 1.2 | 0.9 | ||
Total liabilities and equity | $ (2) | $ (2.2) |
Revenue - Impact of Adoption of
Revenue - Impact of Adoption of ASU on Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 |
Services cost of sales (exclusive of depreciation and amortization) | 328.8 | 328.7 | 297.1 |
Products cost of sales (exclusive of depreciation and amortization) | 258.5 | 240.9 | 226.2 |
Total cost of sales | 587.3 | 621.4 | 619 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 258.2 | ||
Income tax expense | 29.1 | 46.5 | 35.2 |
Net earnings | $ 73.6 | $ 9.7 | $ 59.1 |
Earnings per share | |||
Basic net earnings per share | $ 2.18 | $ 0.29 | $ 1.81 |
Diluted net earnings per share | $ 2.16 | $ 0.29 | $ 1.80 |
Previous Revenue Standard | ASU 2014-09 | |||
Total net sales | $ 963.1 | ||
Services cost of sales (exclusive of depreciation and amortization) | 329.4 | ||
Products cost of sales (exclusive of depreciation and amortization) | 258.5 | ||
Total cost of sales | 587.9 | ||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 258.2 | ||
Income tax expense | 28.9 | ||
Net earnings | $ 73.3 | ||
Earnings per share | |||
Basic net earnings per share | $ 2.17 | ||
Diluted net earnings per share | $ 2.15 | ||
Adoption of ASU 2014-09 | ASU 2014-09 | |||
Total net sales | $ (0.1) | ||
Services cost of sales (exclusive of depreciation and amortization) | (0.6) | ||
Total cost of sales | (0.6) | ||
Income tax expense | 0.2 | ||
Net earnings | $ 0.3 | ||
Earnings per share | |||
Basic net earnings per share | $ 0.01 | ||
Diluted net earnings per share | $ 0.01 | ||
Services Net Sales | |||
Total net sales | $ 618 | $ 632.1 | $ 598.6 |
Services Net Sales | Previous Revenue Standard | ASU 2014-09 | |||
Total net sales | 618.1 | ||
Services Net Sales | Adoption of ASU 2014-09 | ASU 2014-09 | |||
Total net sales | (0.1) | ||
Products Net Sales | |||
Total net sales | 345 | $ 372.8 | $ 384.9 |
Products Net Sales | Previous Revenue Standard | ASU 2014-09 | |||
Total net sales | $ 345 |
Revenue - Impact of Adoption _2
Revenue - Impact of Adoption of ASU on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 172.9 | $ 165.2 | ||
Inventories | 12.1 | 23.3 | ||
Deferred income taxes | 9.7 | 22.2 | ||
Total assets | 868.7 | 893.5 | $ 978.9 | |
LIABILITIES | ||||
Accrued liabilities | 126 | 119.2 | ||
EQUITY | ||||
Retained earnings | 94.3 | 8.9 | ||
Total liabilities and equity | 868.7 | $ 893.5 | ||
ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | $ 174.1 | |||
Inventories | 12.7 | |||
Deferred income taxes | 21.7 | |||
Total assets | 891.3 | |||
LIABILITIES | ||||
Accrued liabilities | 116.1 | |||
EQUITY | ||||
Retained earnings | 9.8 | |||
Total liabilities and equity | 891.3 | |||
Previous Revenue Standard | ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 164.4 | |||
Inventories | 22 | |||
Deferred income taxes | 10.3 | |||
Total assets | 870.7 | |||
LIABILITIES | ||||
Accrued liabilities | 129.2 | |||
EQUITY | ||||
Retained earnings | 93.1 | |||
Total liabilities and equity | 870.7 | |||
Adoption of ASU 2014-09 | ASU 2014-09 | ||||
ASSETS | ||||
Receivables, less allowances for doubtful accounts | 8.5 | 8.9 | ||
Inventories | (9.9) | (10.6) | ||
Deferred income taxes | (0.6) | (0.5) | ||
Total assets | (2) | (2.2) | ||
LIABILITIES | ||||
Accrued liabilities | (3.2) | (3.1) | ||
EQUITY | ||||
Retained earnings | 1.2 | 0.9 | ||
Total liabilities and equity | $ (2) | $ (2.2) |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Reporting Unit and Timing of Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 |
U.S. | |||
Total net sales | 811.8 | ||
International | |||
Total net sales | 151.2 | ||
Point in time | |||
Total net sales | 796.4 | ||
Point in time | U.S. | |||
Total net sales | 664.2 | ||
Point in time | International | |||
Total net sales | 132.2 | ||
Over time | |||
Total net sales | 166.6 | ||
Over time | U.S. | |||
Total net sales | 147.6 | ||
Over time | International | |||
Total net sales | 19 | ||
Capital Markets | U.S. | |||
Total net sales | 456 | ||
Capital Markets | Point in time | U.S. | |||
Total net sales | 358.9 | ||
Capital Markets | Over time | U.S. | |||
Total net sales | 97.1 | ||
Investment Markets | U.S. | |||
Total net sales | 342.1 | ||
Investment Markets | Point in time | U.S. | |||
Total net sales | 291.6 | ||
Investment Markets | Over time | U.S. | |||
Total net sales | 50.5 | ||
Language Solutions | U.S. | |||
Total net sales | 13.7 | ||
Language Solutions | Point in time | U.S. | |||
Total net sales | $ 13.7 |
Revenue - Changes in Contract L
Revenue - Changes in Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Of Financial Position [Abstract] | |
Balance beginning | $ 14.2 |
Deferral of revenue | 47.1 |
Revenue recognized | (47.9) |
Disposition | (1.6) |
Acquisition | 0.2 |
Balance ending | $ 12 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Details) - USD ($) | Dec. 18, 2018 | Jul. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 17, 2018 |
Acquisitions And Dispositions [Line Items] | ||||||
Payments to acquire business, net of cash acquired | $ 12,500,000 | $ 0 | $ 0 | |||
Proceeds from disposition | 77,500,000 | 0 | 0 | |||
Gain on sale of business | 53,800,000 | 0 | $ 0 | |||
Discontinued Operations, Disposed of by Sale | Language Solutions | ||||||
Acquisitions And Dispositions [Line Items] | ||||||
Proceeds from disposition | $ 77,500,000 | |||||
Other Operating Income | Discontinued Operations, Disposed of by Sale | Language Solutions | ||||||
Acquisitions And Dispositions [Line Items] | ||||||
Gain on sale of business | 53,800,000 | |||||
eBrevia | ||||||
Acquisitions And Dispositions [Line Items] | ||||||
Percentage of investment held in prior to acquisition | 12.80% | |||||
Business consideration including contingent consideration | 23,200,000 | |||||
Payments to acquire business, net of cash acquired | $ 12,500,000 | 200,000 | ||||
Payable for initial consideration of business acquisition excluding contingent consideration and amount held in escrow | 4,100,000 | 4,100,000 | ||||
Fair value of investment held in prior to acquisition | 3,300,000 | 3,300,000 | ||||
Maximum additional contingent consideration | 3,500,000 | |||||
Estimated fair value of contingent consideration | 800,000 | 800,000 | ||||
Acquisition related expenses | 800,000 | $ 200,000 | ||||
Tax deductible goodwill | $ 0 | |||||
eBrevia | Investment and Other Income | ||||||
Acquisitions And Dispositions [Line Items] | ||||||
Recognition of gain in previously held investment | $ 1,800,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Preliminary Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Millions | Dec. 18, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Acquisitions And Dispositions [Line Items] | ||||
Goodwill | $ 450 | $ 447.4 | $ 446.4 | |
Payments to acquire business, net of cash acquired | 12.5 | $ 0 | $ 0 | |
eBrevia | ||||
Acquisitions And Dispositions [Line Items] | ||||
Accounts receivable | $ 0.3 | |||
Goodwill | 12.8 | |||
Accounts payable and accrued liabilities | (0.4) | |||
Deferred taxes-net | (1.7) | |||
Total purchase price-net of cash acquired | 23.2 | |||
Less: fair value of the Company's previously held investment in eBrevia | (3.3) | (3.3) | ||
Less: fair value of contingent consideration | (0.8) | (0.8) | ||
Less: payable for initial consideration | (4.1) | (4.1) | ||
Less: amounts held in escrow and liabilities assumed | (2.5) | |||
Payments to acquire business, net of cash acquired | 12.5 | $ 0.2 | ||
eBrevia | Other Intangible Assets | ||||
Acquisitions And Dispositions [Line Items] | ||||
Intangible assets | 11.4 | |||
eBrevia | Software | ||||
Acquisitions And Dispositions [Line Items] | ||||
Intangible assets | $ 0.8 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges - Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | $ 3.4 | $ 6.4 | $ 3.7 |
Other Restructuring Charges | 0.8 | 0.3 | 1.5 |
Total Restructuring Charges | 4.2 | 6.7 | 5.2 |
Other Charges | 0.2 | 0.2 | 0.2 |
Impairment | 0.2 | ||
Total | 4.4 | 7.1 | 5.4 |
U.S. | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 1 | 3.3 | 3 |
Other Restructuring Charges | 0.8 | 0.2 | 1.5 |
Total Restructuring Charges | 1.8 | 3.5 | 4.5 |
Other Charges | 0.2 | 0.2 | 0.2 |
Impairment | 0.2 | ||
Total | 2 | 3.9 | 4.7 |
International | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 1.8 | 2.1 | 0.6 |
Other Restructuring Charges | 0 | 0.1 | 0 |
Total Restructuring Charges | 1.8 | 2.2 | 0.6 |
Other Charges | 0 | 0 | 0 |
Impairment | 0 | ||
Total | 1.8 | 2.2 | 0.6 |
Corporate | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 0.6 | 1 | 0.1 |
Other Restructuring Charges | 0 | 0 | 0 |
Total Restructuring Charges | 0.6 | 1 | 0.1 |
Other Charges | 0 | 0 | 0 |
Impairment | 0 | ||
Total | $ 0.6 | $ 1 | $ 0.1 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Charges - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Employee | Dec. 31, 2017USD ($)Employee | Dec. 31, 2016USD ($)Employee | |
Restructuring And Related Activities [Abstract] | |||
Employee termination costs | $ 3.4 | $ 6.4 | $ 3.7 |
Number of employees used to determine employee termination costs | Employee | 89 | 192 | 84 |
Other restructuring charges | $ 0.8 | $ 0.3 | $ 1.5 |
Impairment charges | 0.2 | ||
Other charges | $ 0.2 | $ 0.2 | $ 0.2 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | $ 3.4 | $ 5.4 |
Restructuring Charges | 4.4 | 10.2 |
Reversals | (0.2) | (3.5) |
Foreign Exchange and Other | 0 | 0.3 |
Cash Paid | (5.9) | (9) |
Balance at the end | 1.7 | 3.4 |
Employee terminations | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 1.3 | 1.6 |
Restructuring Charges | 3.6 | 6.5 |
Reversals | (0.2) | (0.1) |
Foreign Exchange and Other | 0 | 0 |
Cash Paid | (4.3) | (6.7) |
Balance at the end | 0.4 | 1.3 |
Lease terminations and other | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 2.1 | 3.8 |
Restructuring Charges | 0.8 | 3.7 |
Reversals | 0 | (3.4) |
Foreign Exchange and Other | 0 | 0.3 |
Cash Paid | (1.6) | (2.3) |
Balance at the end | $ 1.3 | $ 2.1 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other Charges - Restructuring Reserve - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost And Reserve [Line Items] | ||
Current restructuring reserve (included in accrued liabilities) | $ 1.4 | $ 2.7 |
Accrued Liabilities | ||
Restructuring Cost And Reserve [Line Items] | ||
Current restructuring reserve (included in accrued liabilities) | 1.4 | 2.7 |
Contract Termination | Other Noncurrent Liabilities | ||
Restructuring Cost And Reserve [Line Items] | ||
Noncurrent restructuring reserve (included in noncurrent liabilities) | $ 0.3 | $ 0.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill net book value, beginning balance | $ 447.4 | $ 446.4 |
Acquisition | 12.8 | |
Disposition | (9.3) | |
Foreign exchange and other adjustments | (0.9) | 1 |
Goodwill net book value, ending balance | 450 | 447.4 |
U.S. | ||
Goodwill [Line Items] | ||
Goodwill net book value, beginning balance | 429.2 | 429.2 |
Acquisition | 12.8 | |
Disposition | (3.5) | |
Foreign exchange and other adjustments | 0 | 0 |
Goodwill net book value, ending balance | 438.5 | 429.2 |
International | ||
Goodwill [Line Items] | ||
Goodwill net book value, beginning balance | 18.2 | 17.2 |
Acquisition | 0 | |
Disposition | (5.8) | |
Foreign exchange and other adjustments | (0.9) | 1 |
Goodwill net book value, ending balance | $ 11.5 | $ 18.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 153.2 | $ 143.5 |
Accumulated Amortization | (116) | (103.6) |
Net Book Value | 37.2 | 39.9 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 149.3 | 140.6 |
Accumulated Amortization | (113.1) | (100.7) |
Net Book Value | 36.2 | 39.9 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3.9 | 2.9 |
Accumulated Amortization | (2.9) | (2.9) |
Net Book Value | $ 1 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Additions to Other Intangible assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Additions to other intangible assets during the period | $ 11.4 |
Customer Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Additions to other intangible assets during the period | $ 10.4 |
Amortization Period | 15 years |
Trade Names | |
Finite Lived Intangible Assets [Line Items] | |
Additions to other intangible assets during the period | $ 1 |
Amortization Period | 5 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense for other intangible assets | $ 13.7 | $ 15 | $ 14.4 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 14.6 |
2,020 | 13 |
2,021 | 0.9 |
2,022 | 0.9 |
2,023 | 0.9 |
2024 and thereafter | 6.9 |
Total | $ 37.2 |
Accounts Receivable - Transacti
Accounts Receivable - Transactions Affecting Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Balance, beginning of year | $ 7.3 | $ 6.4 | $ 4.6 |
Provisions charged to expense | 4.9 | 3.9 | 3.1 |
Write-offs and other | (4.3) | (3) | (1.3) |
Balance, end of year | $ 7.9 | $ 7.3 | $ 6.4 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 4 | $ 3.3 |
Work in process | 8.1 | 13.7 |
Finished goods | 0 | 6.3 |
Total | $ 12.1 | $ 23.3 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Company's Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 152.5 | $ 150.1 |
Less: Accumulated depreciation | (120.3) | (115.4) |
Total | 32.2 | 34.7 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 10 | 10 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 36.2 | 36.1 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 106.3 | $ 104 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 7.5 | $ 7 | $ 8.4 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Equity investments carrying value | $ 22.1 | $ 14.9 |
Investments - Summary of Realiz
Investments - Summary of Realized and Unrealized Gains and Losses on Equity Investments Recognized in Investment and Other Income in Consolidated Statements of Operations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Equity Securities Fv Ni Gain Loss Alternative [Abstract] | |
Net gain on equity securities | $ 11.8 |
Less: net gain recognized on equity securities sold | (2.4) |
Unrealized net gain recognized on equity securities still held at the reporting date | $ 9.4 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities Current [Abstract] | ||
Employee-related liabilities | $ 63.3 | $ 68.9 |
Customer-related liabilities | 16.1 | 22.9 |
Income taxes payable | 12.4 | 1.6 |
Accrued interest payable | 5.8 | 6.4 |
Restructuring liabilities | 1.4 | 2.7 |
Other | 27 | 16.7 |
Total accrued liabilities | $ 126 | $ 119.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Commitments for the purchase of property, plant and equipment related to incomplete projects | $ 5 | ||
Commitments for outsourced services, professional, maintenance and other services | 38.1 | ||
Miscellaneous other obligations | 4.6 | ||
Operating lease commitments | 101.5 | ||
Minimum non-cancelable sublease rental commitments | 28.5 | ||
Rent expense | 25.1 | $ 27.4 | $ 23.8 |
Employee terminations | |||
Other Commitments [Line Items] | |||
Severance commitments related to restructuring | $ 0.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Rental Commitments Under Operating Lease (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 26.4 |
2,020 | 22.6 |
2,021 | 16.6 |
2,022 | 10.9 |
2,023 | 8.7 |
2024 and thereafter | 16.3 |
Future minimum rental commitments under operating leases | $ 101.5 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)Pension_Plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Net pension income | $ 3,200,000 | $ 3,300,000 | $ 1,000,000 | ||
Pension and postretirement contributions | 1,900,000 | 2,200,000 | 1,100,000 | ||
Defined benefit plan, accumulated benefit obligation | $ 281,400,000 | 311,100,000 | |||
Threshold for recognition in net periodic benefit costs, percentage of projected benefit obligation or fair value of plan assets | 10.00% | ||||
Total expense attributable to defined contribution retirement savings plan, employer contribution | $ 1,100,000 | 3,400,000 | 0 | ||
Multi-Employer Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of multi-employer Pension plans withdrawn from | Pension_Plan | 1 | ||||
Multi-employer pension plan withdrawal obligations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Charges | $ 200,000 | 200,000 | 200,000 | ||
Hedging Investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentage | 50.00% | ||||
Return Seeking Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentage | 50.00% | ||||
Other Postretirement Benefit Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension cost and other postretirement benefits | $ 100,000 | 100,000 | |||
Net pension plan liabilities | 1,000,000 | 1,200,000 | |||
Total benefit plan liability | 1,000,000 | 1,200,000 | 1,200,000 | ||
Plan assets, fair market value | 0 | 0 | 0 | ||
Pension and postretirement contributions | 100,000 | ||||
Pension and other postretirement expected contributions for next year | 100,000 | ||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension cost and other postretirement benefits | 14,000,000 | 16,900,000 | |||
Net pension plan liabilities | 51,500,000 | 53,500,000 | |||
Total benefit plan liability | 280,400,000 | 309,900,000 | 293,300,000 | ||
Plan assets, fair market value | 228,900,000 | 256,400,000 | 235,800,000 | ||
Net pension income | 3,200,000 | $ 3,300,000 | 1,000,000 | ||
Pension and postretirement contributions | 1,800,000 | ||||
Pension and other postretirement expected contributions for next year | $ 1,200,000 | ||||
R.R. Donnelley & Sons Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension cost and other postretirement benefits | 4,200,000 | ||||
Net pension plan liabilities | $ 68,300,000 | ||||
Total benefit plan liability | 317,000,000 | ||||
Plan assets, fair market value | 248,700,000 | ||||
Decrease to the fair value of plan assets | $ (700,000) | ||||
Net other postretirement benefit liability | $ 1,500,000 | ||||
R.R. Donnelley & Sons Company | Other Postretirement Benefit Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension cost and other postretirement benefits | $ 1,000,000 |
Retirement Plans - Components o
Retirement Plans - Components of Estimated Net Pension Plan Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit income | $ (3.2) | $ (3.3) | $ (1) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 10.3 | 10.6 | 2.4 |
Expected return on plan assets | (16) | (16) | (4.1) |
Amortization of actuarial loss | 2.5 | 2.1 | 0.7 |
Net periodic benefit income | $ (3.2) | $ (3.3) | $ (1) |
Weighted average assumption used to calculate net periodic benefit expense: | |||
Discount rate | 3.70% | 4.20% | 3.70% |
Expected return on plan assets | 6.80% | 7.00% | 7.30% |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 309.9 | $ 293.3 | |
Interest cost | 10.3 | 10.6 | $ 2.4 |
Actuarial (gain) loss | (25.8) | 22.9 | |
Foreign currency translation | 0 | 0 | |
Benefits paid | (14) | (16.9) | |
Benefit obligation at end of year | 280.4 | 309.9 | 293.3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 256.4 | 235.8 | |
Actual return on assets | (15.3) | 36.1 | |
Employer contributions | 1.8 | 2.1 | |
Plan transfer | 0 | (0.7) | |
Benefits paid | (14) | (16.9) | |
Fair value of plan assets at end of year | 228.9 | 256.4 | 235.8 |
Funded status at end of year | (51.5) | (53.5) | |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 1.2 | 1.2 | |
Interest cost | 0 | 0 | |
Actuarial (gain) loss | 0 | 0 | |
Foreign currency translation | (0.1) | 0.1 | |
Benefits paid | (0.1) | (0.1) | |
Benefit obligation at end of year | 1 | 1.2 | 1.2 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 0.1 | 0.1 | |
Plan transfer | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (1) | $ (1.2) |
Retirement Plans - Amount Recog
Retirement Plans - Amount Recognized on Consolidated and Combined Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit cost (included in accrued liabilities) | $ (126) | $ (119.2) |
Pension and other postretirement benefits plan liabilities | (51.3) | (52.5) |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit cost (included in accrued liabilities) | (1.2) | (2.2) |
Pension and other postretirement benefits plan liabilities | (50.3) | (51.3) |
Net liabilities recognized in the Consolidated Balance Sheets | (51.5) | (53.5) |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit cost (included in accrued liabilities) | 0 | 0 |
Pension and other postretirement benefits plan liabilities | (1) | (1.2) |
Net liabilities recognized in the Consolidated Balance Sheets | $ (1) | $ (1.2) |
Retirement Plans - Amounts in A
Retirement Plans - Amounts in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (90.7) | $ (87.6) |
Total | (90.7) | (87.6) |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 0.1 | 0.1 |
Total | $ 0.1 | $ 0.1 |
Retirement Plans - Amounts Reco
Retirement Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of: | |||
Net actuarial loss | $ 2.5 | $ 2.1 | $ 0.7 |
Amounts arising during the period: | |||
Net actuarial loss | (5.6) | (2.7) | 10.9 |
Total | $ (3.1) | $ (0.6) | $ 11.6 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Accumulated Other Comprehensive Loss Expected to Recognized as Components of Net Periodic Benefit Costs (Details) - Pension Plan $ in Millions | Dec. 31, 2018USD ($) |
Amortization of: | |
Net actuarial loss | $ 1.7 |
Total | $ 1.7 |
Retirement Plans - Weighted Ave
Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 3.70% |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.50% | 3.30% |
Retirement Plans - Summary of P
Retirement Plans - Summary of Projected Benefit Obligations in Excess of Plan Assets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 280.4 | $ 309.9 |
Fair value of plan assets | $ 228.9 | $ 256.4 |
Retirement Plans - Expected Ben
Retirement Plans - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 16.1 |
2,020 | 17.5 |
2,021 | 17.4 |
2,022 | 18.9 |
2,023 | 18.1 |
2024-2028 | 91.8 |
Other Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | 0.1 |
2,023 | 0.1 |
2024-2028 | $ 0.4 |
Retirement Plans - Allocation o
Retirement Plans - Allocation of Plan Assets, Pension Plan (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | $ 228.9 | $ 256.4 | $ 235.8 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 1.2 | 66.7 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 9.8 | 90.9 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 1.5 | 7 | |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 1.2 | 3.2 | |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0.3 | 3.8 | |
Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 63.5 | ||
Equity | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 63.5 | ||
Equity | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | ||
Real Estate Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 9.5 | ||
Real Estate Funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | ||
Real Estate Funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 9.5 | ||
Assets Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 217.9 | 98.8 | |
Assets Measured at NAV | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | 0 | |
Assets Measured at NAV | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | $ 0 | 0 | |
Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 87.1 | ||
Fixed Income | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | ||
Fixed Income | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | $ 87.1 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings From Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||
U.S. | $ 69.3 | $ 49.1 | $ 84.9 |
Foreign | 33.4 | 7.1 | 9.4 |
Earnings before income taxes | $ 102.7 | $ 56.2 | $ 94.3 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) From Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||
U.S. Federal, Current | $ 6.9 | $ 12.5 | $ 28.6 |
U.S. State and Local, Current | 5.3 | 5.1 | 9 |
Foreign, Current | 6.3 | 3.4 | 3.5 |
Current income tax expense | 18.5 | 21 | 41.1 |
U.S. Federal, Non-Current | 0.1 | 12.5 | 0 |
U.S. State and Local, Non-Current | 0 | 0.6 | 0 |
Non-current income tax expense | 0.1 | 13.1 | 0 |
U.S. Federal, Deferred | 6.8 | 13.3 | (3.1) |
U.S. State and Local, Deferred | 2.9 | (0.1) | (0.4) |
Foreign, Deferred | 0.8 | (0.8) | (2.4) |
Deferred income tax expense (benefit) | 10.5 | 12.4 | (5.9) |
Total | $ 29.1 | $ 46.5 | $ 35.2 |
Income Taxes - Reconciliation F
Income Taxes - Reconciliation From U.S. Federal Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory tax rate | 21.00% | 35.00% | 35.00% |
State and local income taxes, net of U.S. federal income tax benefit | 6.50% | 5.70% | 5.90% |
Global intangible low-taxed income provision | 2.00% | 0.00% | 0.00% |
Non-deductible expenses | 1.90% | 3.60% | 0.00% |
Foreign tax rate differential | 1.10% | (1.30%) | (0.70%) |
Changes in valuation allowances | 0.50% | 0.50% | (1.90%) |
Adjustment of uncertain tax positions and interest | 0.20% | (0.40%) | 0.60% |
Federal and state transition tax on foreign earnings | 0.10% | 25.30% | 0.00% |
Domestic manufacturing deduction | 0.00% | (0.70%) | (1.30%) |
Tax exempt income and expense | (2.90%) | 0.00% | 0.00% |
Tax Act revaluation of U.S. net deferred tax assets | (2.20%) | 14.80% | 0.00% |
Credits and incentives | (1.30%) | 0.00% | 0.00% |
Other | 1.40% | 0.20% | (0.30%) |
Effective income tax rate | 28.30% | 82.70% | 37.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax rate | 21.00% | 35.00% | 35.00% | |
Reduction of net deferred tax asset recorded as additional deferred income tax expense | $ 8,200,000 | |||
Percentage of income tax rate increase resulting in additional deferred income tax expense | (2.20%) | 14.80% | 0.00% | |
Percentage of tax payable on portion of earnings that are in cash and cash equivalents | 15.50% | |||
Percentage of tax payable on portion of earnings that are in non-cash and non-cash equivalent assets | 8.00% | |||
Income tax expense | $ 29,100,000 | $ 46,500,000 | $ 35,200,000 | |
Percentage of income tax rate increase due to transition tax on foreign earnings | 0.10% | 25.30% | 0.00% | |
Noncurrent taxes payable | $ 0 | |||
Current taxes payable | 0 | |||
Increase to the deemed repatriation tax liability | 100,000 | |||
Benefit related to the revaluation of deferred tax assets and liabilities | 2,200,000 | |||
Domestic and foreign net operating loss | 9,100,000 | $ 10,100,000 | ||
Net operating loss expiring between 2018 and 2027 | 1,800,000 | |||
Cash payments for income taxes | 10,100,000 | 30,500,000 | $ 5,200,000 | |
Current tax settled with RRD | 2,600,000 | 37,200,000 | ||
Cash refunds for income taxes | 800,000 | 1,000,000 | 700,000 | |
Unrecognized tax benefits | 300,000 | 300,000 | 1,900,000 | $ 1,000,000 |
Unrecognized tax benefits that would impact effective tax rate | 300,000 | |||
Amount of unrecognized tax benefit expected to decrease within twelve months | 0 | |||
Total interest expense/(benefit), net of tax benefits related to tax uncertainties | (200,000) | 300,000 | ||
Benefits from reversal of accrued penalties | 0 | 0 | $ 0 | |
Accrued interest related to income tax uncertainties | 0 | 0 | ||
Accrued penalties related to income tax uncertainties | $ 0 | $ 0 | ||
Minimum | ||||
Net operating loss carryforwards expiration year | 2,019 | |||
Maximum | ||||
Net operating loss carryforwards expiration year | 2,027 | |||
Scenario | ||||
Income tax rate | 21.00% | |||
Federal and State | ||||
Income tax expense | $ 14,200,000 | |||
Term required to pay transition tax liability | 8 years | |||
Noncurrent taxes payable | 13,100,000 | |||
Current taxes payable | $ 1,100,000 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Pension and other postretirement benefit plans liabilities | $ 15.1 | $ 15.9 |
Net operating losses and other tax carryforwards | 9.1 | 10.1 |
Accrued liabilities | 12.2 | 11.9 |
Share-based compensation | 3 | 2.9 |
Allowance for doubtful accounts | 2.2 | 2.5 |
Interest | 1.4 | 0 |
Other | 0.9 | 1.2 |
Total deferred tax assets | 43.9 | 44.5 |
Valuation allowances | (2.1) | (1.5) |
Total deferred tax assets | 41.8 | 43 |
Accelerated depreciation | (12.3) | (6.8) |
Other intangible assets | (12.6) | (12.8) |
Investments | (3.1) | 0 |
Prepaid assets | (1.4) | 0 |
Lease obligations | (1.3) | 0 |
Other | (1.6) | (1.6) |
Total deferred tax liabilities | (32.3) | (21.2) |
Net deferred tax assets | $ 9.5 | $ 21.8 |
Income Taxes - Schedule of Tran
Income Taxes - Schedule of Transactions Affecting Valuation Allowance on Deferred Tax Assets (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | |||
Balance, beginning of year | $ 1.5 | $ 1.2 | $ 4.9 |
Current year expense (benefit)-net | 0.7 | 0.3 | (1.5) |
Write-offs | 0 | 0 | (2.3) |
Foreign exchange and other | (0.1) | 0 | 0.1 |
Balance, end of year | $ 2.1 | $ 1.5 | $ 1.2 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Balance at beginning of year | $ 0.3 | $ 1.9 | $ 1 |
Additions for tax positions of the current year | 0.2 | 0 | 0 |
Additions for tax positions of prior years | 0.1 | 0 | 0.9 |
Settlements during the year | (0.1) | (1.4) | 0 |
Releases | (0.2) | (0.2) | 0 |
Balance at end of year | $ 0.3 | $ 0.3 | $ 1.9 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) shares in Thousands | Dec. 18, 2018 | Dec. 17, 2018 | Oct. 02, 2017 | Aug. 04, 2017 | Jun. 21, 2017 | Apr. 03, 2017 | Mar. 28, 2017 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 25, 2017 | Oct. 01, 2016 |
Debt Instrument [Line Items] | ||||||||||||||
Stock issued upon exercise of underwriters options | 104 | |||||||||||||
Outstanding letters of credit and bank guarantees | $ 3,100,000 | |||||||||||||
Interest paid | $ 34,600,000 | $ 40,000,000 | $ 4,800,000 | |||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest payment period | semi-annually | |||||||||||||
Commencement of interest payment | Apr. 15, 2017 | |||||||||||||
8.25% Senior Notes Due October 15, 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior Unsecured notes | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 299,900,000 | |||||||||
Interest rate, stated percentage | 8.25% | 8.25% | 8.25% | 8.25% | ||||||||||
Maturity date | Oct. 15, 2024 | Oct. 15, 2024 | Oct. 15, 2024 | |||||||||||
Fair value of senior notes | $ 298,100,000 | $ 321,500,000 | ||||||||||||
R.R. Donnelley & Sons Company | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of debt | $ 340,200,000 | |||||||||||||
Number of common stock retained | 100 | 6,200 | ||||||||||||
R.R. Donnelley & Sons Company | Underwritten Public Offering | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of common stock sold | 100 | 6,100 | 6,200 | |||||||||||
R.R. Donnelley & Sons Company | Over Allotment Option | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stock issued upon exercise of underwriters options | 900 | |||||||||||||
Proceeds from sale of options exercised | $ 18,800,000 | |||||||||||||
R.R. Donnelley & Sons Company | Separation and Distribution Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Cash payment received from RR Donnelley | $ 68,000,000 | |||||||||||||
Senior Secured Term Loan B Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility | $ 350,000,000 | 350,000,000 | ||||||||||||
Borrowings | 71,300,000 | 168,600,000 | ||||||||||||
Senior Secured Term Loan B Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate basis spread on variable rate decrease | 1.00% | |||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||||||||||
Debt instrument, interest rate basis spread on floor rate decrease | 0.25% | |||||||||||||
Debt instrument floor rate | 0.75% | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility | $ 300,000,000 | $ 300,000,000 | ||||||||||||
Borrowings | $ 0 | $ 0 | ||||||||||||
Weighted average interest rate on borrowings | 5.00% | 4.40% | ||||||||||||
Letters of credit outstanding reduced to available under credit agreement amount | $ 0 | |||||||||||||
Revolving Credit Facility | Second Amended Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, extended maturity date | Dec. 18, 2023 | |||||||||||||
Debt Instrument, allowable annual dividend | $ 20,000,000 | $ 15,000,000 |
Debt - Schedule of the Company'
Debt - Schedule of the Company's Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 25, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ (8,600,000) | $ (10,300,000) | ||
Total debt | 362,700,000 | 458,300,000 | ||
Less: current portion | 0 | 0 | ||
Long-term debt | 362,700,000 | 458,300,000 | ||
8.25% Senior Notes Due October 15, 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior Unsecured notes | 300,000,000 | 300,000,000 | $ 299,900,000 | $ 300,000,000 |
Senior Secured Term Loan B Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | 71,300,000 | 168,600,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 0 | $ 0 |
Debt - Schedule of the Compan_2
Debt - Schedule of the Company's Debt (Parenthetical) (Details) - 8.25% Senior Notes Due October 15, 2024 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 8.25% | 8.25% | 8.25% |
Maturity date | Oct. 15, 2024 | Oct. 15, 2024 | Oct. 15, 2024 |
Debt - Schedule of Future Matur
Debt - Schedule of Future Maturities of Debt (Details) $ in Millions | Dec. 31, 2018USD ($) | |
Long Term Debt By Maturity [Abstract] | ||
2,019 | $ 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 72.5 | |
2024 and thereafter | 300 | |
Total | $ 372.5 | [1] |
[1] | Excludes unamortized debt issuance costs of $8.6 million and a discount of $1.2 million which do not represent contractual commitments with a fixed amount or maturity date. |
Debt - Schedule of Future Mat_2
Debt - Schedule of Future Maturities of Debt (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Long Term Debt By Maturity [Abstract] | ||
Unamortized debt issuance cost | $ 8.6 | $ 10.3 |
Discount on senior notes | $ 1.2 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instruments [Abstract] | |||
Interest incurred | $ 37.1 | $ 43.5 | $ 12.2 |
Less: interest capitalized as property, plant and equipment | (0.4) | (0.6) | (0.5) |
Interest expense, net | $ 36.7 | $ 42.9 | $ 11.7 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) shares in Millions | Aug. 04, 2017shares | Jun. 21, 2017shares | Mar. 28, 2017shares | Oct. 01, 2016shares | Sep. 30, 2016shares | Dec. 31, 2018 |
Earnings Per Share [Line Items] | ||||||
Distribution of common shares during spinoff | 26.2 | |||||
R.R. Donnelley & Sons Company | ||||||
Earnings Per Share [Line Items] | ||||||
Distribution of common shares during spinoff | 26.2 | |||||
Number of common stock retained | 0.1 | 6.2 | ||||
Basic and diluted common shares outstanding | 32.4 | |||||
R.R. Donnelley & Sons Company | Underwritten Public Offering | ||||||
Earnings Per Share [Line Items] | ||||||
Number of common stock sold | 0.1 | 6.1 | 6.2 | |||
R.R. Donnelley & Sons Company | Spinoff | ||||||
Earnings Per Share [Line Items] | ||||||
Number of common stock retained | 6.2 | |||||
Common stock received during spinoff, description | Holders of RRD common stock received one share of DFIN for every eight shares of RRD common stock held on September 23, 2016. | |||||
Conversion ratio of common stock received during spinoff | 0.125 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share Basic And Diluted [Line Items] | |||
Basic | $ 2.18 | $ 0.29 | $ 1.81 |
Diluted | $ 2.16 | $ 0.29 | $ 1.80 |
Net earnings | $ 73.6 | $ 9.7 | $ 59.1 |
Weighted average number of common shares outstanding | 33.8 | 33.1 | 32.6 |
Dilutive awards | 0.2 | 0.2 | 0.2 |
Diluted weighted average number of common shares outstanding | 34 | 33.3 | 32.8 |
Total weighted average number of anti-dilutive share-based awards | 0.9 | 0.5 | 0.4 |
Restricted stock units | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Total weighted average number of anti-dilutive share-based awards | 0.3 | 0.2 | 0.2 |
Stock options | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Total weighted average number of anti-dilutive share-based awards | 0.6 | 0.3 | 0.2 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | Oct. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation award, description | In connection with the Separation, as of October 1, 2016, employee stock options and RSUs were adjusted and converted into new equity awards of DFIN, RRD and/or LSC using a 10-day volume weighted average share price of DFIN, RRD and LSC, as described in the Separation and Distribution Agreement. Converted awards retained the same vesting schedule and expiration date of the original awards. All equity awards converted upon Separation were authorized for issuance under the 2016 PIP. In periods following the Separation, the Company records share-based compensation expense for its employees’ equity awards that were converted into DFIN, RRD and/or LSC equity awards. | ||||
Share-based compensation award, volume weighted average share price, measurement period | 10 days | ||||
Share-based compensation | $ 9,200,000 | $ 6,800,000 | $ 2,500,000 | ||
Share-based compensation expense, income tax benefit | 2,500,000 | 3,000,000 | 1,000,000 | ||
Unrecognized share-based compensation expense | $ 13,100,000 | $ 13,100,000 | |||
Unrecognized share-based compensation expense, vest over weighted-average period | 2 years | ||||
Stock options granted | 324,000 | ||||
RSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation award, vesting period | 3 years | ||||
Share-based compensation | $ 5,200,000 | 4,100,000 | $ 1,900,000 | ||
Unrecognized share-based compensation expense | $ 6,800,000 | $ 6,800,000 | |||
Unrecognized share-based compensation expense, vest over weighted-average period | 1 year 9 months 18 days | ||||
Unrecognized share-based compensation expense, expected to vest, Shares | 700,000 | 700,000 | |||
Unrecognized share-based compensation expense, weighted-average grant date fair value | $ 19.60 | $ 19.60 | |||
Share-based compensation award, granted | 456,000 | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation award, vesting period | 4 years | ||||
Share-based compensation | $ 700,000 | $ 300,000 | |||
Unrecognized share-based compensation expense | $ 2,100,000 | $ 2,100,000 | |||
Unrecognized share-based compensation expense, vest over weighted-average period | 2 years 10 months 24 days | ||||
Stock options granted | 324,500 | 177,600 | 0 | ||
Share-based compensation award, weighted-average grant date fair market value | $ 5.83 | $ 7.77 | |||
Intrinsic value of options exercised | $ 1,000,000 | $ 100,000 | |||
Excess tax benefit on stock options exercises, shown as operating cash inflows | 0 | 0 | |||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | 2,000,000 | $ 2,200,000 | $ 300,000 | ||
Unrecognized share-based compensation expense | $ 1,200,000 | $ 1,200,000 | |||
Unrecognized share-based compensation expense, vest over weighted-average period | 1 year | ||||
Share-based compensation expense, targeted performance percentage | 100.00% | ||||
Share-based compensation expense, actual performance percentage | 100.00% | ||||
Maximum payout for awards | 156,169 | ||||
Restricted Stock | Share-based Compensation Award, Tranche One | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards vesting period | 50.00% | ||||
Restricted Stock | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Potential payout for awards | 129,400 | ||||
Restricted Stock | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Potential payout for awards | 0 | ||||
Performance Share Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 1,300,000 | $ 200,000 | |||
Unrecognized share-based compensation expense | $ 3,000,000 | $ 3,000,000 | |||
Unrecognized share-based compensation expense, vest over weighted-average period | 2 years 1 month 6 days | ||||
Share-based compensation expense, targeted performance percentage | 100.00% | 100.00% | |||
Share-based compensation award, granted | 232,000 | ||||
Performance Share Units | Certain Executive Officers And Senior Management | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation award, granted | 232,300 | 37,100 | |||
Performance Share Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Potential payout for awards | 348,450 | ||||
Performance Share Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Potential payout for awards | 0 | ||||
2016 PIP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved and authorized | 3,500,000 | 3,500,000 | |||
Shares authorized and available for grant | 1,000,000 | 1,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted-Average Assumptions Used to Determine Weighted-Average Fair Market Value of Stock Options Granted (Details) - Stock Options | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 27.75% | 30.71% |
Risk-free interest rate | 2.71% | 2.17% |
Expected life (years) | 6 years 3 months | 6 years 3 months |
Expected dividend yield | 0.00% | 0.00% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Awards Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding at beginning of period | 459 | |
Granted | 324 | |
Exercised | (104) | |
Cancelled/forfeited/expired | (44) | |
Outstanding at end of period | 635 | 459 |
Vested and expected to vest at end of period | 607 | |
Outstanding at beginning of period | $ 22.13 | |
Granted | 17.91 | |
Exercised | 11.95 | |
Cancelled/forfeited/expired | 24.92 | |
Outstanding at end of period | 21.44 | $ 22.13 |
Vested and expected to vest at end of period | $ 21.54 | |
Outstanding at beginning of period | 7 years 2 months 12 days | 5 years 1 month 6 days |
Granted | 9 years 2 months 12 days | |
Vested and expected to vest at end of period | 7 years 1 month 6 days | |
Outstanding at beginning of period | $ 0.8 | |
Outstanding at end of period | $ 0.8 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Nonvested Restricted Stock Unit Awards (Details) - RSUs shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested at beginning of period, Shares | 598 |
Granted, Shares | 456 |
Vested, Shares | (278) |
Forfeited, Shares | (76) |
Nonvested at end of period, Shares | 700 |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares | $ 23.48 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 17.53 |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ / shares | $ 19.60 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Nonvested Performance Share Units (Details) - Performance Share Units shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested at beginning of period, Shares | 37 |
Granted, Shares | 232 |
Forfeited, Shares | (18) |
Nonvested at end of period, Shares | 251 |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares | $ 22.41 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 17.65 |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ / shares | $ 18.23 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Components of Other Comprehensive Income and Income Tax Expense Allocated to Each Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss), Before Tax Amount | $ (8.1) | $ 3.8 | $ 11.8 |
Other comprehensive income (loss), Income Tax Expense | (0.9) | 0.1 | 4.8 |
Other comprehensive (loss) income, net of tax | (7.2) | 3.7 | 7 |
Translation adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss), Before Tax Amount | (5) | 4.4 | (0.1) |
Other comprehensive income (loss), Income Tax Expense | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | (5) | 4.4 | (0.1) |
Adjustment for Net Periodic Pension Plan and Other Postretirement Benefits Plan Cost | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss), Before Tax Amount | (3.1) | (0.6) | 11.9 |
Other comprehensive income (loss), Income Tax Expense | (0.9) | 0.1 | 4.8 |
Other comprehensive (loss) income, net of tax | $ (2.2) | $ (0.7) | $ 7.1 |
Comprehensive Income - Addition
Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 0 | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | (10.9) | |
Retained Earnings | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | 10.9 | |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 10.9 | 10.9 |
Accounting Standards Update 2018-02 | Retained Earnings | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 10.9 | $ 10.9 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 149.4 | $ 111.1 | $ 623.5 |
Adoption of ASU 2018-02 | 0 | ||
Balance | 226 | 149.4 | 111.1 |
Pension and Other Postretirement Benefits Plan Cost | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (52.9) | (52.2) | 0 |
Other comprehensive income (loss) before reclassifications | (4) | (2.1) | 6.7 |
Amounts reclassified from accumulated other comprehensive loss | 1.8 | 1.4 | 0.4 |
Transfer of pension plan to parent company, net | (59.3) | ||
Adoption of ASU 2018-02 | (10.9) | ||
Net change in accumulated other comprehensive loss | (13.1) | (0.7) | (52.2) |
Balance | (66) | (52.9) | (52.2) |
Translation adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (11.7) | (16.1) | (16) |
Other comprehensive income (loss) before reclassifications | (5) | 4.4 | (0.1) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Transfer of pension plan to parent company, net | 0 | ||
Adoption of ASU 2018-02 | 0 | ||
Net change in accumulated other comprehensive loss | (5) | 4.4 | (0.1) |
Balance | (16.7) | (11.7) | (16.1) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (64.6) | (68.3) | (16) |
Other comprehensive income (loss) before reclassifications | (9) | 2.3 | 6.6 |
Amounts reclassified from accumulated other comprehensive loss | 1.8 | 1.4 | 0.4 |
Transfer of pension plan to parent company, net | (59.3) | ||
Adoption of ASU 2018-02 | (10.9) | ||
Net change in accumulated other comprehensive loss | (18.1) | 3.7 | (52.3) |
Balance | $ (82.7) | $ (64.6) | $ (68.3) |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Loss Amortization of Pension Plan Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Defined Benefit Plans Adjustment, Net Actuarial loss | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of pension and other postretirement benefits plan cost: Reclassifications before tax | [1] | $ 2.5 | $ 2.1 | $ 0.7 |
Pension and Other Postretirement Benefits Plan Cost | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of pension and other postretirement benefits plan cost: Reclassifications before tax | 2.5 | 2.1 | 0.7 | |
Income tax expense | 0.7 | 0.7 | 0.3 | |
Reclassifications, net of tax | $ 1.8 | $ 1.4 | $ 0.4 | |
[1] | (a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to DFIN in periods prior to the Separation, and recognized in investment and other income in the consolidated and combined statements of operations (see Note 13, Retirement Plans |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 |
Income (Loss) from Operations | 121.1 | 95.7 | 105 |
Assets of Operations | 868.7 | 893.5 | 978.9 |
Depreciation and amortization | 45.8 | 44.5 | 43.3 |
Capital Expenditures | 37.1 | 27.8 | 26.2 |
Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 974.2 | 1,017.4 | 995.5 |
Income (Loss) from Operations | 165.6 | 134.8 | 127.2 |
Assets of Operations | 759.5 | 755.1 | 765.9 |
Depreciation and amortization | 45.3 | 44.5 | 39.1 |
Capital Expenditures | 36 | 26.1 | 23.1 |
Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (11.2) | (12.5) | (12) |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income (Loss) from Operations | (44.5) | (39.1) | (22.2) |
Assets of Operations | 109.2 | 138.4 | 213 |
Depreciation and amortization | 0.5 | 0 | 4.2 |
Capital Expenditures | 1.1 | 1.7 | 3.1 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 811.8 | 847.9 | 845.2 |
U.S. | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 821 | 856.6 | 852.6 |
Income (Loss) from Operations | 134 | 127.6 | 118.4 |
Assets of Operations | 681.9 | 664.7 | 672.2 |
Depreciation and amortization | 39.6 | 38.2 | 34.5 |
Capital Expenditures | 34.8 | 24.7 | 20.5 |
U.S. | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (9.2) | (8.7) | (7.4) |
International | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 151.2 | 157 | 138.3 |
International | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 153.2 | 160.8 | 142.9 |
Income (Loss) from Operations | 31.6 | 7.2 | 8.8 |
Assets of Operations | 77.6 | 90.4 | 93.7 |
Depreciation and amortization | 5.7 | 6.3 | 4.6 |
Capital Expenditures | 1.2 | 1.4 | 2.6 |
International | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | $ (2) | $ (3.8) | $ (4.6) |
Segment Information - Schedul_2
Segment Information - Schedule of Corporate Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||||
Software, net | $ 47.8 | $ 41.1 | ||
Cash and cash equivalents | 47.3 | 52 | $ 36.2 | $ 15.1 |
Deferred income tax assets, net of valuation allowances | 41.8 | 43 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Software, net | 46.9 | 40.6 | ||
Cash and cash equivalents | 27.2 | 43 | ||
Deferred income tax assets, net of valuation allowances | $ 9.1 | $ 18.7 |
Geographic Area and Products _3
Geographic Area and Products and Services Information - Schedule of Net Sales and Long-lived Assets by Geographic Region (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 963 | $ 1,004.9 | $ 983.5 | |
Long-lived assets | [1] | 122.8 | 113.9 | 111.6 |
U.S. | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 811.8 | 847.9 | 845.2 | |
Long-lived assets | [1] | 117.2 | 107.2 | 107.4 |
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 59.7 | 70.6 | 62.4 | |
Long-lived assets | [1] | 3.1 | 4.5 | 3.1 |
Asia | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 55.5 | 47.2 | 39.2 | |
Long-lived assets | [1] | 2.4 | 1.6 | 0.6 |
Canada | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 33.4 | 36 | 32.1 | |
Long-lived assets | [1] | 0.1 | 0.6 | 0.5 |
Other | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 2.6 | 3.2 | 4.6 | |
Long-lived assets | [1] | $ 0 | $ 0 | $ 0 |
[1] | Includes net property, plant and equipment, net software and other noncurrent assets. |
Geographic Area and Products _4
Geographic Area and Products and Services Information - Summary of Net Sales for Services and Products (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 | |
Services Net Sales | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | 618 | 632.1 | 598.6 | |
Services Net Sales | Capital Markets | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | 408.3 | 396.7 | 387.6 | |
Services Net Sales | Investment Markets | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | [1] | 167.4 | 164 | 144.4 |
Services Net Sales | Language Solutions | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | [1] | 42.3 | 71.4 | 66.6 |
Products Net Sales | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | 345 | 372.8 | 384.9 | |
Products Net Sales | Capital Markets | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | 151 | 154.9 | 168.5 | |
Products Net Sales | Investment Markets | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | [1] | 194 | 217.9 | 216.4 |
Products Net Sales | Language Solutions | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total net sales | [1] | $ 0 | $ 0 | $ 0 |
[1] | Prior year amounts were restated to conform to the Company’s current reporting unit structure |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | Aug. 04, 2017 | Jun. 21, 2017 | Mar. 28, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | ||
Related Party Transaction [Line Items] | |||||||||||
Net Sales | $ 963 | $ 1,004.9 | $ 983.5 | ||||||||
Products cost of sales (exclusive of depreciation and amortization) | 258.5 | 240.9 | 226.2 | ||||||||
Services cost of sales (exclusive of depreciation and amortization) | $ 328.8 | 328.7 | 297.1 | ||||||||
Selling, General and Administrative Expenses | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share-based compensation costs | $ 1.2 | ||||||||||
Outsourcing Business | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Services cost of sales (exclusive of depreciation and amortization) | $ 19.5 | 37.8 | |||||||||
Transition Services Agreements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Intercompany agreements, description | In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively. These services have included, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. Most of the services provided under the transition services agreements terminated at September 30, 2018 or earlier. Under certain transition services agreements, RRD agreed to provide information technology services to the Company for up to 36 months following the Separation. These agreements facilitated the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. | ||||||||||
Term of agreement | 36 months | ||||||||||
Commercial and Other Arrangements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Intercompany agreements, description | The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize SaaS solutions and services that the Company provides to all of its clients. | ||||||||||
Term of agreement | 36 months | ||||||||||
R.R. Donnelley & Sons Company | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sale of common stock transaction date | Jun. 21, 2017 | ||||||||||
Common stock shares issued retained | 0.1 | ||||||||||
Net pension plan liabilities | $ 68.3 | ||||||||||
Total benefit plan liability | 317 | ||||||||||
Plan assets, fair market value | $ 248.7 | ||||||||||
Decrease to the fair value of plan assets | (0.7) | ||||||||||
R.R. Donnelley & Sons Company | Freight and Logistics and Services | Printed Products | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Products cost of sales (exclusive of depreciation and amortization) | 32.3 | 57.9 | |||||||||
R.R. Donnelley & Sons Company | Underwritten Public Offering | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of common stock sold | 0.1 | 6.1 | 6.2 | ||||||||
Sale of common stock transaction date | Aug. 4, 2017 | ||||||||||
R.R. Donnelley Affiliates | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Net Sales | $ 8.3 | 19.4 | |||||||||
Products cost of sales (exclusive of depreciation and amortization) | [1] | $ 0 | 32.3 | [2] | 57.9 | ||||||
Services cost of sales (exclusive of depreciation and amortization) | [1] | $ 0 | $ 19.5 | [2] | $ 37.8 | ||||||
[1] | |||||||||||
[2] | Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Related Parties - Schedule of A
Related Parties - Schedule of Allocation of Expenses Reflected in Condensed Consolidated and Combined Financial Statements (Details) - R.R. Donnelley & Sons Company $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Total allocations from RRD | $ 172.6 |
Costs of goods sold | |
Related Party Transaction [Line Items] | |
Total allocations from RRD | 28 |
Selling, general and administrative | |
Related Party Transaction [Line Items] | |
Total allocations from RRD | 129.4 |
Depreciation and amortization | |
Related Party Transaction [Line Items] | |
Total allocations from RRD | $ 15.2 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 0 | |
Accumulated Other Comprehensive Loss | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | (10.9) | |
Retained Earnings | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | 10.9 | |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 10.9 | 10.9 |
Accounting Standards Update 2018-02 | Retained Earnings | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Impact of adoption increase in accumulated comprehensive loss and retained earnings | $ 10.9 | $ 10.9 |
Guarantor Financial Informati_3
Guarantor Financial Information - Additional Information (Details) | Dec. 31, 2018 |
Donnelley Financial, LLC and DFS International Holding, Inc | |
Condensed Income Statements Captions [Line Items] | |
Percentage of ownership in directly owned subsidiaries | 100.00% |
Guarantor Financial Informati_4
Guarantor Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | $ 963 | $ 1,004.9 | $ 983.5 | |||
Services cost of sales (exclusive of depreciation and amortization) | 328.8 | 328.7 | 297.1 | |||
Products cost of sales (exclusive of depreciation and amortization) | 258.5 | 240.9 | 226.2 | |||
Total cost of sales | 587.3 | 621.4 | 619 | |||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 258.2 | 236.2 | 210.8 | |||
Restructuring, impairment and other charges-net | 4.4 | 7.1 | 5.4 | |||
Depreciation and amortization | 45.8 | 44.5 | 43.3 | |||
Other operating income | (53.8) | |||||
Income from operations | 121.1 | 95.7 | 105 | |||
Interest expense (income)-net | 36.7 | 42.9 | 11.7 | |||
Intercompany interest (income) expense - net | 0 | |||||
Investment and other income-net | (18.3) | (3.4) | (1) | |||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 102.7 | 56.2 | 94.3 | |||
Income tax expense | 29.1 | 46.5 | 35.2 | |||
Earnings (loss) before equity in net income of subsidiaries | 73.6 | 9.7 | 59.1 | |||
Equity in net income of subsidiaries | 0 | 0 | 0 | |||
Net earnings | 73.6 | 9.7 | 59.1 | |||
Comprehensive income (loss) | 66.4 | 13.4 | 66.1 | |||
R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | $ 8.3 | 19.4 | ||||
Services cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 19.5 | [2] | 37.8 | |
Products cost of sales (exclusive of depreciation and amortization) | [1] | 0 | 32.3 | [2] | 57.9 | |
Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (11.2) | (12.5) | (12) | |||
Services cost of sales (exclusive of depreciation and amortization) | (6.2) | (7.4) | (7.1) | |||
Products cost of sales (exclusive of depreciation and amortization) | (5) | (5.1) | (4.9) | |||
Total cost of sales | (11.2) | (12.5) | (12) | |||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 0 | 0 | 0 | |||
Restructuring, impairment and other charges-net | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | |||
Other operating income | 0 | |||||
Income from operations | 0 | 0 | 0 | |||
Interest expense (income)-net | 0 | 0 | 0 | |||
Intercompany interest (income) expense - net | 0 | |||||
Investment and other income-net | 0 | 0 | 0 | |||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 0 | 0 | 0 | |||
Income tax expense | 0 | 0 | 0 | |||
Earnings (loss) before equity in net income of subsidiaries | 0 | 0 | 0 | |||
Equity in net income of subsidiaries | (106.1) | (40.6) | (75) | |||
Net earnings | (106.1) | (40.6) | (75) | |||
Comprehensive income (loss) | (93.9) | (48.7) | (82.1) | |||
Eliminations | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | 0 | [2] | 0 | |||
Products cost of sales (exclusive of depreciation and amortization) | 0 | [2] | 0 | |||
Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 618 | 632.1 | 598.6 | |||
Services Net Sales | Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (6.4) | (8.1) | (7.7) | |||
Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 345 | 372.8 | 384.9 | |||
Products Net Sales | Eliminations | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | (4.8) | (4.4) | (4.3) | |||
Parent | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | |||
Services cost of sales (exclusive of depreciation and amortization) | 0 | 0 | 0 | |||
Products cost of sales (exclusive of depreciation and amortization) | 0 | 0 | 0 | |||
Total cost of sales | 0 | 0 | 0 | |||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 0 | 0 | 0 | |||
Restructuring, impairment and other charges-net | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | |||
Other operating income | 0 | |||||
Income from operations | 0 | 0 | 0 | |||
Interest expense (income)-net | 37.6 | 43.1 | 11.7 | |||
Intercompany interest (income) expense - net | (25.5) | |||||
Investment and other income-net | 0 | 0 | 0 | |||
Earnings (loss) before income taxes and equity in net income of subsidiaries | (12.1) | (43.1) | (11.7) | |||
Income tax expense | (5.9) | (16.7) | (4.3) | |||
Earnings (loss) before equity in net income of subsidiaries | (6.2) | (26.4) | (7.4) | |||
Equity in net income of subsidiaries | 79.8 | 36.1 | 66.5 | |||
Net earnings | 73.6 | 9.7 | 59.1 | |||
Comprehensive income (loss) | 66.4 | 13.4 | 66.1 | |||
Parent | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | 0 | [2] | 0 | |||
Products cost of sales (exclusive of depreciation and amortization) | 0 | [2] | 0 | |||
Parent | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | |||
Parent | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 0 | 0 | 0 | |||
Guarantor Subsidiaries | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 821 | 856.6 | 852.6 | |||
Services cost of sales (exclusive of depreciation and amortization) | 258.4 | 257.3 | 236 | |||
Products cost of sales (exclusive of depreciation and amortization) | 236.7 | 221.5 | 207 | |||
Total cost of sales | 495.1 | 527.3 | 535.9 | |||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 220 | 197.4 | 177 | |||
Restructuring, impairment and other charges-net | 2.6 | 4.9 | 4.8 | |||
Depreciation and amortization | 40.1 | 38.2 | 38.6 | |||
Other operating income | (26.6) | |||||
Income from operations | 89.8 | 88.8 | 96.3 | |||
Interest expense (income)-net | (0.3) | (0.1) | 0 | |||
Intercompany interest (income) expense - net | 25.6 | |||||
Investment and other income-net | (16.9) | (3.3) | (0.2) | |||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 81.4 | 92.2 | 96.5 | |||
Income tax expense | 27.9 | 60.6 | 38.5 | |||
Earnings (loss) before equity in net income of subsidiaries | 53.5 | 31.6 | 58 | |||
Equity in net income of subsidiaries | 26.3 | 4.5 | 8.5 | |||
Net earnings | 79.8 | 36.1 | 66.5 | |||
Comprehensive income (loss) | 72.6 | 39.8 | 73.5 | |||
Guarantor Subsidiaries | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | 18.4 | [2] | 35.6 | |||
Products cost of sales (exclusive of depreciation and amortization) | 30.1 | [2] | 57.3 | |||
Guarantor Subsidiaries | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 508 | 518.5 | 502.2 | |||
Guarantor Subsidiaries | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 313 | 338.1 | 350.4 | |||
Non-guarantor Subsidiaries | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 153.2 | 160.8 | 142.9 | |||
Services cost of sales (exclusive of depreciation and amortization) | 76.6 | 78.8 | 68.2 | |||
Products cost of sales (exclusive of depreciation and amortization) | 26.8 | 24.5 | 24.1 | |||
Total cost of sales | 103.4 | 106.6 | 95.1 | |||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 38.2 | 38.8 | 33.8 | |||
Restructuring, impairment and other charges-net | 1.8 | 2.2 | 0.6 | |||
Depreciation and amortization | 5.7 | 6.3 | 4.7 | |||
Other operating income | (27.2) | |||||
Income from operations | 31.3 | 6.9 | 8.7 | |||
Interest expense (income)-net | (0.6) | (0.1) | 0 | |||
Intercompany interest (income) expense - net | (0.1) | |||||
Investment and other income-net | (1.4) | (0.1) | (0.8) | |||
Earnings (loss) before income taxes and equity in net income of subsidiaries | 33.4 | 7.1 | 9.5 | |||
Income tax expense | 7.1 | 2.6 | 1 | |||
Earnings (loss) before equity in net income of subsidiaries | 26.3 | 4.5 | 8.5 | |||
Equity in net income of subsidiaries | 0 | 0 | 0 | |||
Net earnings | 26.3 | 4.5 | 8.5 | |||
Comprehensive income (loss) | 21.3 | 8.9 | 8.6 | |||
Non-guarantor Subsidiaries | R.R. Donnelley Affiliates | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Services cost of sales (exclusive of depreciation and amortization) | 1.1 | [2] | 2.2 | |||
Products cost of sales (exclusive of depreciation and amortization) | 2.2 | [2] | 0.6 | |||
Non-guarantor Subsidiaries | Services Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | 116.4 | 121.7 | 104.1 | |||
Non-guarantor Subsidiaries | Products Net Sales | ||||||
Condensed Income Statements Captions [Line Items] | ||||||
Total net sales | $ 36.8 | $ 39.1 | $ 38.8 | |||
[1] | ||||||
[2] | Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only. |
Guarantor Financial Informati_5
Guarantor Financial Information - Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 47.3 | $ 52 | $ 36.2 | $ 15.1 |
Receivables, less allowances | 172.9 | 165.2 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 12.1 | 23.3 | ||
Prepaid expenses and other current assets | 16.7 | 29.6 | ||
Total current assets | 249 | 270.1 | ||
Property, plant and equipment-net | 32.2 | 34.7 | ||
Software-net | 47.8 | 41.1 | ||
Goodwill | 450 | 447.4 | 446.4 | |
Other intangible assets-net | 37.2 | 39.9 | ||
Deferred income taxes | 9.7 | 22.2 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 42.8 | 38.1 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Total assets | 868.7 | 893.5 | 978.9 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 72.4 | 67.8 | ||
Intercompany payables | 0 | 0 | ||
Intercompany short-term note payable-net | 0 | 0 | ||
Accrued liabilities | 126 | 119.2 | ||
Total current liabilities | 198.4 | 187 | ||
Long-term debt (Note 15) | 362.7 | 458.3 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 19.5 | 22.8 | ||
Pension and other postretirement benefits plan liabilities | 51.3 | 52.5 | ||
Other noncurrent liabilities | 10.8 | 23.5 | ||
Total liabilities | 642.7 | 744.1 | ||
Total equity | 226 | 149.4 | 111.1 | 623.5 |
Total liabilities and equity | 868.7 | 893.5 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | (2.4) | 0 |
Receivables, less allowances | 0 | 0 | ||
Intercompany receivables | (123.6) | (146.4) | ||
Intercompany short-term note receivable-net | (60.5) | (30) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | (25.1) | |||
Total current assets | (184.1) | (201.5) | ||
Property, plant and equipment-net | 0 | 0 | ||
Software-net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets-net | 0 | 0 | ||
Deferred income taxes | (29.9) | (21.7) | ||
Intercompany long-term note receivable | (298) | |||
Other noncurrent assets | 0 | 0 | ||
Investments in consolidated subsidiaries | (551.9) | (813.6) | ||
Total assets | (1,063.9) | (1,036.8) | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | (123.6) | (146.4) | ||
Intercompany short-term note payable-net | (60.5) | (30) | ||
Accrued liabilities | (25.1) | |||
Total current liabilities | (184.1) | (201.5) | ||
Long-term debt (Note 15) | 0 | 0 | ||
Intercompany long-term note payable | (298) | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 0 | 0 | ||
Other noncurrent liabilities | (29.9) | (21.7) | ||
Total liabilities | (512) | (223.2) | ||
Total equity | (551.9) | (813.6) | ||
Total liabilities and equity | (1,063.9) | (1,036.8) | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 24.9 | 8.3 | 0 | 0 |
Receivables, less allowances | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 37.1 | |||
Total current assets | 24.9 | 45.4 | ||
Property, plant and equipment-net | 0 | 0 | ||
Software-net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets-net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany long-term note receivable | 298 | |||
Other noncurrent assets | 3.6 | 3.4 | ||
Investments in consolidated subsidiaries | 445.9 | 728.4 | ||
Total assets | 772.4 | 777.2 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | 120.9 | 139.5 | ||
Intercompany short-term note payable-net | 60 | 30 | ||
Accrued liabilities | 0.1 | 0 | ||
Total current liabilities | 181 | 169.5 | ||
Long-term debt (Note 15) | 362.7 | 458.3 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 0 | 0 | ||
Other noncurrent liabilities | 2.7 | 0 | ||
Total liabilities | 546.4 | 627.8 | ||
Total equity | 226 | 149.4 | ||
Total liabilities and equity | 772.4 | 777.2 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 5 | 27.9 | 21.8 | 0.1 |
Receivables, less allowances | 141.6 | 131.3 | ||
Intercompany receivables | 123.6 | 146.4 | ||
Intercompany short-term note receivable-net | 0 | 0 | ||
Inventories | 10.4 | 21.3 | ||
Prepaid expenses and other current assets | 13.5 | 14.8 | ||
Total current assets | 294.1 | 341.7 | ||
Property, plant and equipment-net | 29.3 | 31.2 | ||
Software-net | 47.8 | 40.6 | ||
Goodwill | 438.5 | 429.2 | ||
Other intangible assets-net | 32.6 | 32.4 | ||
Deferred income taxes | 37.2 | 40.5 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 35.1 | 30 | ||
Investments in consolidated subsidiaries | 106 | 85.2 | ||
Total assets | 1,020.6 | 1,030.8 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 61 | 57.9 | ||
Intercompany payables | 0 | 0 | ||
Intercompany short-term note payable-net | 0.5 | 0 | ||
Accrued liabilities | 109.2 | 127.6 | ||
Total current liabilities | 170.7 | 185.5 | ||
Long-term debt (Note 15) | 0 | 0 | ||
Intercompany long-term note payable | 298 | |||
Deferred compensation liabilities | 19.5 | 22.8 | ||
Pension and other postretirement benefits plan liabilities | 50.3 | 51.3 | ||
Other noncurrent liabilities | 36.2 | 42.8 | ||
Total liabilities | 574.7 | 302.4 | ||
Total equity | 445.9 | 728.4 | ||
Total liabilities and equity | 1,020.6 | 1,030.8 | ||
Non-guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 17.4 | 15.8 | $ 16.8 | $ 15 |
Receivables, less allowances | 31.3 | 33.9 | ||
Intercompany receivables | 0 | 0 | ||
Intercompany short-term note receivable-net | 60.5 | 30 | ||
Inventories | 1.7 | 2 | ||
Prepaid expenses and other current assets | 3.2 | 2.8 | ||
Total current assets | 114.1 | 84.5 | ||
Property, plant and equipment-net | 2.9 | 3.5 | ||
Software-net | 0 | 0.5 | ||
Goodwill | 11.5 | 18.2 | ||
Other intangible assets-net | 4.6 | 7.5 | ||
Deferred income taxes | 2.4 | 3.4 | ||
Intercompany long-term note receivable | 0 | |||
Other noncurrent assets | 4.1 | 4.7 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Total assets | 139.6 | 122.3 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 11.4 | 9.9 | ||
Intercompany payables | 2.7 | 6.9 | ||
Intercompany short-term note payable-net | 0 | 0 | ||
Accrued liabilities | 16.7 | 16.7 | ||
Total current liabilities | 30.8 | 33.5 | ||
Long-term debt (Note 15) | 0 | 0 | ||
Intercompany long-term note payable | 0 | |||
Deferred compensation liabilities | 0 | 0 | ||
Pension and other postretirement benefits plan liabilities | 1 | 1.2 | ||
Other noncurrent liabilities | 1.8 | 2.4 | ||
Total liabilities | 33.6 | 37.1 | ||
Total equity | 106 | 85.2 | ||
Total liabilities and equity | $ 139.6 | $ 122.3 |
Guarantor Financial Informati_6
Guarantor Financial Information - Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | $ 66.3 | $ 91.4 | $ 106 |
INVESTING ACTIVITIES | |||
Capital expenditures | (37.1) | (27.8) | (26.2) |
Acquisition of business, net of cash acquired | (12.5) | 0 | 0 |
Sale (purchase) of investment | 3.1 | (3.4) | (3.5) |
Proceeds from disposition | 77.5 | 0 | 0 |
Intercompany note receivable, net | 0 | 0 | |
Other investing activities | (0.8) | 0.2 | 0.4 |
Net cash provided by (used in) investing activities | 30.2 | (31) | (29.3) |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 360 | 298.5 | 0 |
Payments on revolving facility borrowings | (360) | (298.5) | 0 |
Payments on long-term debt | (97.5) | (133) | (50) |
Net change in short-term debt | 0 | 0 | (8.8) |
Net transfers to Parent and affiliates | 0 | 0 | (340.1) |
Separation-related payment from R.R. Donnelley | 0 | 68 | 0 |
Intercompany note payable, net | 0 | 0 | |
Proceeds from the issuance of common stock | 1.2 | 18.8 | 0 |
Proceeds from issuance of long-term debt | 0 | 3.1 | 348.2 |
Treasury stock repurchases | (1.5) | (0.9) | 0 |
Other financing activities | 0 | 0.4 | 0 |
Debt issuance costs | (1.2) | (2.1) | (9.3) |
Net cash used in financing activities | (99) | (45.7) | (60) |
Effect of exchange rate on cash and cash equivalents | (2.2) | 1.1 | 4.4 |
Net (decrease) increase in cash and cash equivalents | (4.7) | 15.8 | 21.1 |
Cash and cash equivalents at beginning of year | 52 | 36.2 | 15.1 |
Cash and cash equivalents at end of period | 47.3 | 52 | 36.2 |
Supplemental non-cash disclosure: | |||
Intercompany debt allocation | 0 | ||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 0 | 0 | 300 |
Settlement of intercompany note payable | 0 | 0 | 29.6 |
Accrued debt issuance costs | 0 | 0 | 1.5 |
Eliminations | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | 2.4 | (2.4) | |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | ||
Sale (purchase) of investment | 0 | 0 | 0 |
Proceeds from disposition | 0 | ||
Intercompany note receivable, net | 30.5 | 14.7 | |
Other investing activities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 30.5 | 14.7 | 0 |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 0 | 0 | |
Payments on revolving facility borrowings | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Net change in short-term debt | 0 | ||
Net transfers to Parent and affiliates | 0 | ||
Separation-related payment from R.R. Donnelley | 0 | ||
Intercompany note payable, net | (30.5) | (14.7) | |
Proceeds from the issuance of common stock | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Treasury stock repurchases | 0 | 0 | |
Other financing activities | 0 | ||
Debt issuance costs | 0 | 0 | |
Net cash used in financing activities | (30.5) | (14.7) | 0 |
Effect of exchange rate on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 2.4 | (2.4) |
Cash and cash equivalents at beginning of year | 0 | (2.4) | 0 |
Cash and cash equivalents at end of period | 0 | 0 | (2.4) |
Supplemental non-cash disclosure: | |||
Intercompany debt allocation | 0 | ||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 0 | ||
Settlement of intercompany note payable | 0 | ||
Accrued debt issuance costs | 0 | ||
Parent | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | 85.9 | 39.3 | (1.2) |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | ||
Sale (purchase) of investment | 0 | 0 | 0 |
Proceeds from disposition | 0 | ||
Intercompany note receivable, net | 0 | 0 | |
Other investing activities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 360 | 298.5 | |
Payments on revolving facility borrowings | (360) | (298.5) | |
Payments on long-term debt | (97.5) | (133) | (50) |
Net change in short-term debt | 0 | ||
Net transfers to Parent and affiliates | (287.7) | ||
Separation-related payment from R.R. Donnelley | 68 | ||
Intercompany note payable, net | 29.7 | 14.7 | |
Proceeds from the issuance of common stock | 1.2 | 18.8 | |
Proceeds from issuance of long-term debt | 3.1 | 348.2 | |
Treasury stock repurchases | (1.5) | (0.9) | |
Other financing activities | 0.4 | ||
Debt issuance costs | (1.2) | (2.1) | (9.3) |
Net cash used in financing activities | (69.3) | (31) | 1.2 |
Effect of exchange rate on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 16.6 | 8.3 | 0 |
Cash and cash equivalents at beginning of year | 8.3 | 0 | 0 |
Cash and cash equivalents at end of period | 24.9 | 8.3 | 0 |
Supplemental non-cash disclosure: | |||
Intercompany debt allocation | (298) | ||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 300 | ||
Settlement of intercompany note payable | 0 | ||
Accrued debt issuance costs | 1.5 | ||
Guarantor Subsidiaries | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | (12) | 35.7 | 103.2 |
INVESTING ACTIVITIES | |||
Capital expenditures | (35.9) | (26.4) | (23.6) |
Acquisition of business, net of cash acquired | (12.5) | ||
Sale (purchase) of investment | 3.1 | (3.4) | (3.5) |
Proceeds from disposition | 34.4 | ||
Intercompany note receivable, net | 0 | 0 | |
Other investing activities | (0.8) | 0.2 | 0 |
Net cash provided by (used in) investing activities | (11.7) | (29.6) | (27.1) |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 0 | 0 | |
Payments on revolving facility borrowings | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Net change in short-term debt | 0 | ||
Net transfers to Parent and affiliates | (54.4) | ||
Separation-related payment from R.R. Donnelley | 0 | ||
Intercompany note payable, net | 0.8 | 0 | |
Proceeds from the issuance of common stock | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Treasury stock repurchases | 0 | 0 | |
Other financing activities | 0 | ||
Debt issuance costs | 0 | 0 | 0 |
Net cash used in financing activities | 0.8 | 0 | (54.4) |
Effect of exchange rate on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (22.9) | 6.1 | 21.7 |
Cash and cash equivalents at beginning of year | 27.9 | 21.8 | 0.1 |
Cash and cash equivalents at end of period | 5 | 27.9 | 21.8 |
Supplemental non-cash disclosure: | |||
Intercompany debt allocation | 298 | ||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 0 | ||
Settlement of intercompany note payable | 29.6 | ||
Accrued debt issuance costs | 0 | ||
Non-guarantor Subsidiaries | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | (7.6) | 14 | 6.4 |
INVESTING ACTIVITIES | |||
Capital expenditures | (1.2) | (1.4) | (2.6) |
Acquisition of business, net of cash acquired | 0 | ||
Sale (purchase) of investment | 0 | 0 | 0 |
Proceeds from disposition | 43.1 | ||
Intercompany note receivable, net | (30.5) | (14.7) | |
Other investing activities | 0 | 0 | 0.4 |
Net cash provided by (used in) investing activities | 11.4 | (16.1) | (2.2) |
FINANCING ACTIVITIES | |||
Revolving facility borrowings | 0 | 0 | |
Payments on revolving facility borrowings | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Net change in short-term debt | (8.8) | ||
Net transfers to Parent and affiliates | 2 | ||
Separation-related payment from R.R. Donnelley | 0 | ||
Intercompany note payable, net | 0 | 0 | |
Proceeds from the issuance of common stock | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Treasury stock repurchases | 0 | 0 | |
Other financing activities | 0 | ||
Debt issuance costs | 0 | 0 | |
Net cash used in financing activities | 0 | 0 | (6.8) |
Effect of exchange rate on cash and cash equivalents | (2.2) | 1.1 | 4.4 |
Net (decrease) increase in cash and cash equivalents | 1.6 | (1) | 1.8 |
Cash and cash equivalents at beginning of year | 15.8 | 16.8 | 15 |
Cash and cash equivalents at end of period | 17.4 | $ 15.8 | 16.8 |
Supplemental non-cash disclosure: | |||
Intercompany debt allocation | $ 0 | ||
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs | 0 | ||
Settlement of intercompany note payable | 0 | ||
Accrued debt issuance costs | $ 0 |