Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 26, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LKSD | ||
Entity Registrant Name | LSC Communications, Inc. | ||
Entity Central Index Key | 0001669812 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 33,508,367 | ||
Entity Public Float | $ 120,031,446 | ||
Title of 12(g) Security | Common stock, par value $0.01 per share) | ||
Entity File Number | 1-37729 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4829580 | ||
Entity Address, Address Line One | 191 N. Wacker Drive, Suite 1400 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60606 | ||
City Area Code | 773 | ||
Local Phone Number | 272-9200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement related to its annual meeting of stockholders are incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 3,326 | $ 3,826 | $ 3,603 |
Type of Revenue [Extensible List] | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember |
Cost of sales | $ 2,888 | $ 3,283 | $ 3,026 |
Type of Cost, Good or Service [Extensible List] | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember | lksd:ProductAndServicesMember |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | $ 327 | $ 328 | $ 307 |
Restructuring, impairment and other charges-net (Note 10) | 148 | 35 | 129 |
Depreciation and amortization | 120 | 138 | 160 |
(Loss) income from operations | (157) | 42 | (19) |
Interest expense-net (Note 13) | 76 | 80 | 72 |
Settlement of retirement benefit obligations (Note 15) | 137 | 0 | 0 |
Termination fee from Quad (Note 1) | (45) | 0 | 0 |
Investment and other (income)-net | (37) | (48) | (47) |
(Loss) income before income taxes | (288) | 10 | (44) |
Income tax expense | 7 | 33 | 13 |
Net (loss) | $ (295) | $ (23) | $ (57) |
Net (loss) per common share (Note 14) | |||
Basic net (loss) per share | $ (8.82) | $ (0.67) | $ (1.69) |
Diluted net (loss) per share | $ (8.82) | $ (0.67) | $ (1.69) |
Weighted-average number of common shares outstanding: | |||
Basic | 33.4 | 33.8 | 33.8 |
Diluted | 33.4 | 33.8 | 33.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) | $ (295) | $ (23) | $ (57) |
Other comprehensive income (loss), net of tax (Note 17): | |||
Translation adjustments | 2 | (7) | 21 |
Adjustment for net periodic pension plan cost | 54 | (4) | 34 |
Other comprehensive income (loss) | 56 | (11) | 55 |
Comprehensive (loss) | $ (239) | $ (34) | $ (2) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Adjustments for net pension plan cost, tax benefit (expense) | $ (18) | $ 1 | $ (15) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 105 | $ 21 |
Receivables, less allowances for doubtful accounts of $12 in 2019 (2018 - $14) | 472 | 617 |
Inventories (Note 7) | 170 | 197 |
Income tax receivable | 5 | 4 |
Prepaid expenses and other current assets | 36 | 28 |
Total current assets | 788 | 867 |
Property, plant and equipment-net (Note 8) | 440 | 508 |
Goodwill (Note 9) | 52 | 103 |
Other intangible assets-net (Note 9) | 120 | 156 |
Right-of-use assets for operating leases | 163 | 0 |
Deferred income taxes | 9 | 27 |
Other noncurrent assets | 77 | 93 |
Total assets | 1,649 | 1,754 |
LIABILITIES | ||
Accounts payable | 175 | 372 |
Accrued liabilities (Note 11) | 211 | 199 |
Short-term debt and current portion of long-term debt (Note 13) | 465 | 108 |
Short-term operating lease liabilities | 42 | 0 |
Total current liabilities | 893 | 679 |
Long-term debt (Note 13) | 445 | 659 |
Pension liabilities | 156 | 132 |
Restructuring and multi-employer pension liabilities (Note 10) | 42 | 45 |
Long-term operating lease liabilities | 129 | 0 |
Other noncurrent liabilities | 56 | 61 |
Total liabilities | 1,721 | 1,576 |
Commitments and contingencies (Note 12) | ||
EQUITY | ||
Common stock, $0.01 par value Authorized: 65,000,000 Issued: 35,559,052 shares in 2019 (2018: 35,029,565) | 0 | 0 |
Additional paid-in capital | 835 | 828 |
Accumulated deficit | (354) | (42) |
Accumulated other comprehensive loss (Note 17) | (528) | (584) |
Treasury stock, at cost: 2,084,055 shares in 2019 (2018: 1,888,205) | (25) | (24) |
Total equity | (72) | 178 |
Total liabilities and equity | $ 1,649 | $ 1,754 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 12 | $ 14 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 65,000,000 | 65,000,000 |
Common stock, Issued | 35,559,052 | 35,029,565 |
Treasury stock, shares | 2,084,055 | 1,888,205 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net (loss) | $ (295) | $ (23) | $ (57) |
Adjustments to reconcile net (loss) to net cash (used in) provided by operating activities: | |||
Impairment charges | 79 | 6 | 88 |
Depreciation and amortization | 120 | 138 | 160 |
Provision for doubtful accounts receivable | 7 | 7 | 3 |
Share-based compensation | 7 | 12 | 13 |
Deferred income taxes | 2 | 21 | (15) |
Settlement of retirement benefit obligations | 137 | 0 | 0 |
Gain on sale of investments and other assets-net | (34) | (3) | (10) |
Other | 6 | 7 | 5 |
Changes in operating assets and liabilities - net of acquisitions: | |||
Accounts receivable-net | 137 | 103 | (7) |
Inventories | 27 | (6) | 5 |
Prepaid expenses and other current assets | (3) | (2) | (1) |
Accounts payable | (177) | (38) | 103 |
Income taxes receivable and payable | (2) | 11 | (7) |
Accrued liabilities and other | (15) | (71) | (75) |
Net cash (used in) provided by operating activities | (4) | 162 | 205 |
Cash Flows from Investing Activities | |||
Capital expenditures | (71) | (63) | (60) |
Acquisitions of businesses, net of cash acquired | (3) | (48) | (236) |
Disposition of businesses | 6 | 47 | 0 |
Net proceeds from sales and purchases of investments and other assets | 34 | 9 | 18 |
Net cash (used in) investing activities | (34) | (55) | (278) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of long-term debt | 0 | 0 | 65 |
Payments of current maturities and long-term debt | (44) | (50) | (118) |
Net proceeds (payments) from credit facility borrowings | 183 | (9) | 75 |
Debt issuance costs | (2) | (1) | (1) |
Proceeds from issuance of common stock | 0 | 0 | 18 |
Payments for repurchase of common stock | 0 | (20) | 0 |
Dividends paid | (17) | (35) | (34) |
Other financing activities | (1) | (1) | (2) |
Payments from RRD-net | 0 | 0 | 3 |
Net cash provided by (used in) financing activities | 119 | (116) | 6 |
Effect of exchange rate on cash and cash equivalents | 1 | (2) | 5 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 82 | (11) | (62) |
Cash, cash equivalents and restricted cash at beginning of year | 24 | 35 | 97 |
Cash, cash equivalents and restricted cash at end of period | 106 | 24 | 35 |
Fairrington | |||
Supplemental non-cash disclosure: | |||
Issuance of approximately 1.0 million shares of LSC Communications, Inc. common stock for acquisition of a business | $ 0 | $ 0 | $ 20 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation to the Consolidated Balance Sheets | |||
Cash and cash equivalents | $ 105 | $ 21 | |
Restricted cash included in prepaid expenses and other current assets | $ 1 | $ 3 | |
Restricted Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 35 | $ 106 | $ 24 |
Fairrington | |||
Supplemental non-cash disclosure: | |||
Issuance of stock for acquisitions of businesses | 1 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income |
Balance at Dec. 31, 2016 | $ 240 | $ 0 | $ 770 | $ 0 | $ 1 | $ (531) |
Balance (in shares) at Dec. 31, 2016 | 32 | 0 | ||||
Net (loss) | (57) | $ 0 | 0 | $ 0 | (57) | 0 |
Separation-related adjustments | (5) | 0 | (5) | 0 | 0 | 0 |
Issuance of common stock | 38 | $ 0 | 38 | 0 | 0 | 0 |
Issuance of common stock (in shares) | 2 | |||||
Issuance of share-based awards, net of withholdings and other | (2) | $ 0 | 0 | $ (2) | 0 | 0 |
Issuance of share-based awards, net of withholding and other (in shares) | 1 | 0 | ||||
Share-based compensation | 13 | $ 0 | 13 | $ 0 | 0 | 0 |
Cash dividends paid | (34) | 0 | 0 | 0 | (34) | 0 |
Other comprehensive income (loss) | 55 | 0 | 0 | 0 | 0 | 55 |
Balance at Dec. 31, 2017 | 248 | $ 0 | 816 | $ (2) | (90) | (476) |
Balance (in shares) at Dec. 31, 2017 | 35 | 0 | ||||
Net (loss) | (23) | $ 0 | 0 | $ 0 | (23) | 0 |
Repurchase of common stock | (20) | 0 | 0 | $ (20) | 0 | 0 |
Repurchase of common stock (in shares) | 2 | |||||
Revenue recognition adjustments | 9 | 0 | 0 | $ 0 | 9 | 0 |
Reclassification of tax rate change to accumulated deficit | 0 | 0 | 0 | 0 | 97 | (97) |
Issuance of share-based awards, net of withholdings and other | (2) | $ 0 | 0 | $ (2) | 0 | 0 |
Issuance of share-based awards, net of withholding and other (in shares) | 0 | 0 | ||||
Share-based compensation | 12 | $ 0 | 12 | $ 0 | 0 | 0 |
Cash dividends paid | (35) | 0 | 0 | 0 | (35) | 0 |
Other comprehensive income (loss) | (11) | 0 | 0 | 0 | 0 | (11) |
Balance at Dec. 31, 2018 | 178 | $ 0 | 828 | $ (24) | (42) | (584) |
Balance (in shares) at Dec. 31, 2018 | 35 | 2 | ||||
Net (loss) | (295) | $ 0 | 0 | $ 0 | (295) | 0 |
Issuance of share-based awards, net of withholdings and other | (1) | $ 0 | 0 | $ (1) | 0 | 0 |
Issuance of share-based awards, net of withholding and other (in shares) | 1 | 0 | ||||
Share-based compensation | 7 | $ 0 | 7 | $ 0 | 0 | 0 |
Cash dividends paid | (17) | 0 | 0 | 0 | (17) | 0 |
Other comprehensive income (loss) | 56 | 0 | 0 | 0 | 0 | 56 |
Balance at Dec. 31, 2019 | $ (72) | $ 0 | $ 835 | $ (25) | $ (354) | $ (528) |
Balance (in shares) at Dec. 31, 2019 | 36 | 2 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends declared per common share | $ 0.52 | $ 1.04 | $ 1 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Description of Business The principal business of LSC Communications, Inc., a Delaware corporation, and its direct or indirect wholly-owned subsidiaries (“LSC Communications,” “the Company,” “we,” “our” and “us”) is to offer a broad scope of traditional and digital print, print-related services and office products. The Company serves the needs of publishers, merchandisers and retailers worldwide with a service offering that includes e-services, logistics, warehousing and fulfillment and supply chain management services. The Company utilizes a broad portfolio of technology capabilities coupled with consultative attention to clients' needs to increase speed to market, reduce costs, provide postal savings to customers and improve efficiencies. The Company prints magazines, catalogs, books and directories, and its office products offerings include filing products, envelopes, note-taking products, binder products, and forms. Merger Agreement On October 30, 2018, the Company entered into that certain Agreement and Plan of Merger (the “Merger Agreement”), by and among Quad/Graphics, Inc. (“Quad”), QLC Merger Sub, Inc. and LSC Communications, pursuant to which, subject to the satisfaction or waiver of certain conditions, LSC Communications would be merged with QLC Merger Sub, Inc., and become a wholly-owned subsidiary of Quad. On July 22, 2019, Quad and LSC Communications entered into a letter agreement (the “Letter Agreement”), pursuant to which the parties agreed to terminate the Merger Agreement. Pursuant to the Letter Agreement, Quad agreed to pay LSC Communications the Regulatory Approval Reverse Termination Fee (as defined in the Merger Agreement) of $45 million in cash on the business day following the date of the Letter Agreement. The Company incurred transaction costs of approximately $26 million associated with the Merger Agreement, of which $5 million was incurred in 2018. Except for certain indemnification obligations of Quad related to LSC Communications assisting Quad with the financing under the Merger Agreement, the parties also agreed to release each other from any and all claims, counterclaims, demands, proceedings, actions, causes of action, orders, obligations, damages, debts, costs, expenses and other liabilities whatsoever and howsoever arising pursuant to or in connection with the Merger Agreement or the transactions provided for in the Merger Agreement. Basis of Presentation The consolidated financial statements include the balance sheets, statements of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). All intercompany transactions have been eliminated in consolidation. As a result of the Company’s segment analysis in the fourth quarter of 2019, Mexico met the requirements to be classified as a reportable segment (previously included as a non-reportable segment). All prior year amounts have been reclassified to conform to the Company’s current reporting structure. Refer to Note 19, Segment Information , for more information. The Company adopted Accounting Standards Update No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02” or “ASC 842”) on January 1, 2019 using the modified retrospective adoption method. Refer to Note 5, Leases , for more information. The Company adopted Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”, or the “standard”) on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2019 and 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared and continue to be reported under previous guidance. Going Concern The consolidated financial statements have been prepared assuming the Company will continue as a going concern. Based on final results of operations for the year ended December 31, 2019, the Company concluded it was not in compliance with the Consolidated Leverage Ratio and Minimum Interest Ratio contained in the Credit Agreement of December 31, 2019. The noncompliance occurred on the last day of the fourth quarter due to the following: the Company’s Consolidated Leverage Ratio exceeded the maximum level permitted and the Company’s Minimum Interest Ratio was below the minimum level permitted. On Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement lenders constituting a majority under the Credit Agreement that governs the Company’s Revolving Credit Facility and Term Loan Facility. The Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement waives the defaults or events of default that have occurred as a result of the financial covenant noncompliance on December 31, 2019 and prevents the lenders from directing the Administrative Agent to accelerate the debt or exercise other remedies as a result of certain other potential defaults or events of default which may occur under the Credit Agreement (the “ Potential Defaults ”), through the period ended May 14, 2020 (such period, the “Forbearance Period”). The Potential Defaults include potential breaches of the Company’s financial covenants with respect to the first quarter of 2020, failure to make principal and interest payments related to the Term Loan Facility, failure to deliver audited financial statements for the year ended December 31, 2019 without a going concern qualification or exception, and failure to provide notice with respect to the Potential Defaults. The Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement contains certain covenants and requirements, and failure to comply with these covenants and requirements could result in the termination of the Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement (and the Forbearance Period) prior to its stated term. Following the end of the Forbearance Period, the lenders may choose not to provide a full waiver of the Potential Defaults, should any occur. The Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement requires the Company to pay a waiver fee of 0.30% of the Aggregate Exposure of the Consenting Lenders as of the effective date of the Waiver and Forbearance Agreement. Should any of the Potential Defaults occur, unless the Company obtains an extension or another waiver, upon the termination of the Forbearance Period, the Company’s debt under the Revolving Credit Facility and Term Loan Facility could be in default and could be accelerated by lenders, which would require the Company to pay all amounts outstanding and could result in a default under, and the acceleration of, our other debt. The ability to continue as a going concern is dependent upon the Company entering into an amendment to the Credit Agreement, including revised covenants, or obtaining financing to replace the current facility, as well as continuing profitable operations, continuing to meet its obligations, and continuing to repay its liabilities arising from normal business operations when they become due. The Company has evaluated its plans to alleviate this doubt, which may include obtaining amended terms from its current lenders to allow for sufficient flexibility in the financial covenants after giving consideration to the Company’s current operations and strategic plans, or evaluating strategic alternatives in order to reduce the Company’s indebtedness of the issuance date of these consolidated financial statements, such plans cannot yet be considered probable (as defined by ASC 205-40, “Going Concern”) of occurring If we need to raise additional capital through public or private debt or equity financings, strategic relationships, or other arrangements, this capital might not be available to us in a timely manner, on acceptable terms, or at all. Our failure to raise sufficient capital when needed could severely constrain or prevent us from, among other factors, developing new or enhancing existing services or products, acquiring other services or technologies, or funding significant capital expenditures and may have a material adverse effect on our business, financial position, results of operations, and cash flows, as well as impair our ability to service our debt obligations. If additional funds were raised through the issuance of equity or convertible debt securities, the percentage of stock owned by the then-current stockholders could be reduced. Furthermore, such equity or any debt securities that we issue might have rights, preferences, or privileges senior to holders of our common stock. In addition, trends in the securities and credit markets may restrict our ability to raise any such additional funds, at least in the near term. The consolidated financial statements included in this annual report on Form 10-K do not include any adjustments related to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The audit opinion on our consolidated financial statements includes an emphasis of matter paragraph related to the substantial doubt surrounding the Company’s ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Use of Estimates —The preparation of the consolidated 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, disclosure of contingent assets and liabilities at the date of the financial statements, and 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, self-insurance reserves, 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. 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. 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 — As explained in Note 1, Overview and Basis of Presentation , the Company adopted ASC 606, on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2019 and 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared and continue to be reported under previous guidance. The Company recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the performance obligation has been completed and the customer obtains control of the products, which is generally upon shipment to the customer (dependent upon specific shipping terms). Under agreements with certain customers, custom products may be stored by the Company for future delivery. Based upon contractual terms, the Company is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides, which the Company recognizes over time as the services are provided. With certain customer contracts, the Company is permitted to complete a pre-defined amount of custom products and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, which include consigned inventory, the Company has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Based upon contractual terms, the Company recognizes revenue once the performance obligation has been satisfied and the customer obtains control of the completed products, usually when production is completed. In very limited situations, the Company is permitted to produce and hold in inventory a pre-defined amount of custom products as safety stock. Similar to completed production held in inventory, for these items, the Company has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Based upon our evaluation of the contractual terms, the Company is able to recognize revenue once the performance obligation has been satisfied and the customer obtains control of the completed product, usually when production is completed. Revenue from the Company’s print related services (including list processing, mail sortation services and supply chain management) is recognized as services are completed over time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. Variable consideration resulting from volume rebates, fixed rebates, penalties or credits for paper consumption, and sales discounts that are offered within contracts between the Company and its customers is recognized in the period the related revenue is recognized. Estimates of variable consideration are based on stated contract terms and an analysis of historical experience. The amount of variable consideration is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts 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, not distinct. For contracts with multiple performance obligations, such as co-mail and catalog production, the transaction price allocated to each performance obligation is based on the price stated in the customer contract, which represents the Company’s best estimate of the standalone selling price of each distinct good or service in the contract. Billings for shipping and handling costs are recorded gross. The Company made an accounting policy election under ASC 606 to account for shipping and handling after the customer obtains control of the good as fulfillment activities rather than as a separate service to the customer. As a result, the Company accrues the costs of the shipping and handling if revenue is recognized for the related good before the fulfillment activities occur. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers as part of the end product. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis. As a result, the Company’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 120 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. The timing of revenue recognition, billings and cash collections results in accounts receivable and unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Revenue recognition generally coincides with the Company’s contractual right to consideration and the issuance of invoices to customers. Depending on the nature of the performance obligation and arrangements with customers, the timing of the issuance of invoices may result in contract assets or contract liabilities. Contract assets related to unbilled receivables are recognized for satisfied performance obligations for which the Company cannot yet issue an invoice. Contract liabilities result from advances or deposits from customers on performance obligations not yet satisfied. Because the majority of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer returns at the time of sale. Refer to Note 4, Revenue Recognition . By-product recoveries —The Company records the sale of by-products as a reduction of cost of sales. 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 our net sales in 2019, 2018 or 2017. 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. Refer to Note 6, 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 net realizable value and net of excess and obsolescence reserves for raw materials and finished goods. 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. The cost of 65.1% and 63.0% of the inventories at December 31, 2019 and 2018, respectively, has been determined using the Last-In, First-Out (“LIFO”) method. The LIFO method is intended to reflect the effect of inventory replacement costs within the consolidated statements of operations; accordingly, charges to cost of sales generally reflect recent costs of material, labor and factory overhead. The Company uses an external-index method of valuing LIFO inventories. The remaining inventories, primarily related to certain acquired and international operations, are valued using the First-In, First-Out (“FIFO”) or specific identification methods. 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 and other intangible assets, that are held for sale, 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. Goodwill —Goodwill is assigned to a specific reporting unit, depending on the nature of the acquired company. 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 value. 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 unit’s 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 value. As a result of the Company’s early adoption of ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350)” during the third quarter of 2017, if the carrying value exceeds the reporting unit’s fair value, the Company recognizes an impairment charge equal to the amount by which the carrying value exceeds the reporting unit’s fair value not to exceed the total amount of goodwill recorded. Refer to Note 10, Restructuring, Impairment and Other Charges, Amortization —Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of 3 years. Amortization expense, primarily related to internally-developed software and excluding amortization expense related to other intangible assets, was $9 million, $9 million and $5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred debt issuance costs are amortized over the term of the related debt. Other intangible assets, except for those intangible assets with indefinite lives, are recognized separately from goodwill and are amortized over their estimated useful lives. Other intangible assets with indefinite lives ar e not amortized. Refer to Note 9 , Goodwill and Other Intangible Assets, for further discussion of other intangible assets and the related amortization expense. Share-Based Compensation — The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. Refer to Note 18, for further discussion. Leases — As explained in Note 1, Overview and Basis of Presentation , the Company adopted ASC 842, on January 1, 2019 using the modified retrospective adoption method. Under ASC 842, the Company determines if a contract contains a lease at the inception of the contract. A contract contains a lease if it conveys to the Company the right to control the use of specified assets. Operating leases are included in ROU assets and in other current liabilities and other non-current liabilities. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. ROU assets and lease liabilities are recognized at the present value of future lease payments. The discount rate used to measure the amount recognized is the Company’s incremental borrowing rate if an implicit rate is not determinable from the lease contract. Operating lease cost is recognized on a straight-line basis over the term of the lease. The Company leases land, production facilities, office space, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Further, the Company has elected not to separate lease and non-lease components of contracts for any asset classes, but rather to account for non-lease components together with their related lease components. For leases that include renewal options that the Company is reasonably certain to exercise, the Company includes the renewal period in its initial classification of the lease. Renewal options range from 1 year to 3 years. Variable lease payments do not depend on a published index or rate, and therefore, are expensed as incurred. Pension Benefits Plans — T he Company records annual income and expense amounts relating to its pension plans based on calculations that include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. 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 effect 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 15, Retirement Plans , for information on settlements recorded by the Company in 2019. Taxes on Income —The Company has recorded deferred tax assets related to future deductible items, including domestic and foreign tax loss and credit carryforwards. The Company evaluates these deferred tax assets by tax jurisdiction. The utilization of these tax assets is limited by the amount of taxable income expected to be generated within the allowable carryforward period and other factors. Accordingly, the Company has recorded valuation allowances to reduce certain of these deferred tax assets when 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. A significant piece of objective negative evidence is the cumulative loss incurred over the three-year Significant judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities and any valuation allowance recorded against deferred tax assets. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various U.S. and foreign tax authorities. The Company recognizes a tax position in its financial statements when it is more likely than not (a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s consolidated financial statements. As of December 31, 2019, a de minimis amount of unrecognized tax benefits were recognized in the consolidated balance sheets. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. Refer to Note 16 , Income Taxes, Comprehensive Income (Loss) —Comprehensive income (loss) for the Company consists of net earnings, unrecognized actuarial gains and losses and foreign currency translation adjustments. Refer to Note 17 for further discussion. |
Business Combinations and Dispo
Business Combinations and Disposition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations and Disposition | Note 3. Business Combinations and Disposition 2018 Acquisition On July 2, 2018, the Company completed the acquisition of R.R. Donnelley & Sons’ Print Logistics business (“Print Logistics”), total purchase price was $58 million in cash, which was reduced to million as a result of a $6 million net working capital settlement in the fourth quarter of 2018. Of the final total purchase price, $21 million was recorded in goodwill related to this acquisition. 2018 Disposition On September 28, 2018, the Company completed the sale of its European printing business, which included web offset manufacturing facilities, a logistics and warehousing site and a location dedicated to premedia services, for proceeds of $47 million. Income Taxes Acquisition Information The acquisition of Print Logistics 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 in goodwill. The goodwill is primarily attributable to the synergies expected to arise as a result of the acquisitions. The tax deductible goodwill related to the Print Logistics acquisition was $25 million. The purchase price allocation for Print Logistics was final as of December 31, 2018. There were no changes to the purchase price allocation as of December 31, 2019 compared to the disclosed purchase price allocation in the Company’s annual report on Form 10-K for the year ended December 31, 2018. The final purchase price allocation for Print Logistics was as follows: Accounts Receivable $ 40 Prepaid expenses and other current assets 1 Property, plant and equipment 8 Other intangible assets 17 Goodwill 21 Accounts payable and accrued liabilities (35 ) Purchase price and net cash paid $ 52 The fair values of goodwill, other intangible assets and property, plant and equipment associated with Print Logistics were determined to be Level 3 under the fair value hierarchy, which include d discounted cash flow analyses and compara ble marketplace fair value data . Property, plant and equipment values were estimated using either the cost , or if a secondhand market existed, the market approach. The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements associated with Print Logistics : Fair Value Valuation Technique Unobservable Input Value Customer relationships $ 17 Multi-period excess earnings method Existing customer growth rate (3.5%) Attrition rate 7.5% Discount rate 18.0% For the years ended December 31, 2019, 2018 and 2017, the Company recorded a de minimis amount, $2 million and $5 million, respectively, associated with the completed and contemplated acquisitions within selling, general and administrative expenses in the consolidated statements of operations. Pro forma results The following unaudited pro forma financial information for the year ended December 31, 2019 and 2018 presents the consolidated statements of operations of the Company and the acquisition of Print Logistics as if the acquisition had occurred as of January 1 of the year prior to the acquisition. The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s consolidated statements of operations that would have been reported had this acquisition been completed as of the beginning of the period presented and should not be taken as indicative of the Company’s future consolidated statements of operations. Pro forma adjustments are tax-effected at the applicable statutory tax rates. Year ended December 31, 2019 2018 Net sales $ 3,326 $ 3,911 Net (loss) (295 ) (26 ) Net (loss) per common share Basic $ (8.82 ) $ (0.77 ) Diluted $ (8.82 ) $ (0.77 ) The following table outlines unaudited pro forma financial information for the years ended December 31, 2019 and 2018: Year ended December 31, 2019 2018 Amortization of purchased intangibles $ 18 $ 19 There were no nonrecurring pro forma adjustments affecting net (loss) income for the years ended December 31, 2019 and 2018. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 4. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. The Company recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the performance obligation has been completed and the customer obtains control of the products, which is generally upon shipment to the customer (dependent upon specific shipping terms). Revenue from the Company’s print related services (including list processing, mail sortation services and supply chain management) is recognized as services are completed over time. Under agreements with certain customers, custom products may be stored by the Company for future delivery. Based upon contractual terms, the Company is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides, which the Company recognizes over time as the services are provided. Refer to Note 2, Significant Accounting Policies , for further information on the Company’s revenue recognition policies. Disaggregated Revenue The following table provides information about disaggregated revenue by major products/service lines and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments. Year Ended December 31, 2019 Magazines, Catalogs and Office Logistics Book Products Mexico Other Corporate Total Major Products / Service Lines Book (a) $ — $ 1,011 $ — $ — $ — $ — $ 1,011 Magazines and Catalogs (b) $ 1,218 $ — $ — $ 91 $ 81 $ — $ 1,390 North America 1,218 — — 91 81 — 1,390 Europe — — — — — — — Logistics $ 341 $ — $ — $ — $ — $ — $ 341 Directories $ — $ — $ — $ — $ 68 $ — $ 68 North America — — — — 68 — 68 Europe — — — — — — — Office Products $ — $ — $ 517 $ — $ — $ (1 ) $ 516 Total $ 1,559 $ 1,011 $ 517 $ 91 $ 149 $ (1 ) $ 3,326 Timing of Revenue Recognition Products and services transferred at a point in time $ 1,106 $ 871 $ 517 $ 91 $ 68 $ (1 ) $ 2,652 Products and services transferred over time 453 140 — — 81 — 674 Total $ 1,559 $ 1,011 $ 517 $ 91 $ 149 $ (1 ) $ 3,326 Year Ended December 31, 2018 Magazines, Catalogs and Office Logistics Book Products Mexico Other Corporate Total Major Products / Service Lines Book (a) $ — $ 1,055 $ — $ — $ — $ — $ 1,055 Magazines and Catalogs (b) $ 1,497 $ — $ — $ 97 $ 241 $ — $ 1,835 North America 1,497 — — 97 77 — 1,671 Europe — — — — 164 — 164 Logistics $ 270 $ — $ — $ — $ — $ — $ 270 Directories $ — $ — $ — $ — $ 106 $ — $ 106 North America — — — — 92 — 92 Europe — — — — 14 — 14 Office Products $ — $ — $ 562 $ — $ — $ (2 ) $ 560 Total $ 1,767 $ 1,055 $ 562 $ 97 $ 347 $ (2 ) $ 3,826 Timing of Revenue Recognition Products and services transferred at a point in time $ 1,371 $ 929 $ 562 $ 97 $ 270 $ (2 ) $ 3,227 Products and services transferred over time 396 126 — — 77 — 599 Total $ 1,767 $ 1,055 $ 562 $ 97 $ 347 $ (2 ) $ 3,826 (a) Includes e-book formatting and supply chain management associated with book production (b) Includes premedia and co-mail Due to the Company’s adoption of ASC 606 using the modified retrospective method on January 1, 2018, disaggregated revenue information is not disclosed for the year ended December 31, 2017. Contract Balances The following table provides changes in contract assets and liabilities during the year ended December 31, 2019. Short-Term Contract Assets Long-Term Contract Assets Contract Liabilities Beginning Balance, January 1, 2019 $ 44 $ 30 $ 16 Additions to unbilled accounts receivable 38 — — Unbilled accounts receivable recognized in trade receivables (42 ) — — Payment of contract acquisition costs — 3 — Amortization of contract acquisition costs — (12 ) — Write-off due to termination of contract acquisition costs — (7 ) — Revenue recognized that was included in contract liabilities as of January 1, 2019 — — (12 ) Increases due to cash received — — 13 Ending Balance, December 31, 2019 $ 40 $ 14 $ 17 The trade receivables balances as of December 31, 2019 and 2018 were $366 million and $488 million, respectively. Contract Acquisition Costs In connection with the adoption of ASC 606, the Company is required to capitalize certain contract acquisition costs. For contracts that have a duration of less than one year, the Company follows the ASC 606 practical expedient approach and expenses these costs when incurred; for contracts with life exceeding one year, the Company records these costs in proportion to each completed contract performance obligation. For the year ended December 31, 2019, the amount of amortization was $12 million and there was $7 million of impairment loss related to costs capitalized. For the year ended December 31, 2018, the amount of amortization was $11 million and there was no impairment loss in relation to costs capitalized. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 5. Leases Financial Statement Impact of Adopting Accounting Standards Update No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02” or “ASC 842”) The Company adopted ASU 2016-02 on January 1, 2019 using the modified retrospective adoption method. The reported results for 2019 reflect the adoption of ASC 842 guidance while the reported results for 2018 were prepared and continue to be reported under the guidance of ASC 840, Leases, referred to herein as “previous guidance.” In adopting ASC 842, the Company applied certain available practical expedients, including electing to combine lease and non-lease components of a contract and electing to apply the practical expedient “package” permitted under ASU 2016-02. This election allowed the Company to use the lease classification (operating or finance) previously determined at the start of a lease contract for any expired or existing leases as of the date of adoption. The Company performed an analysis of all lease contracts existing as of January 1, 2019. Upon adoption of ASC 842, the Company added $206 million of right-of-use (“ROU”) assets and lease liabilities to its balance sheet related to operating leases. There were no changes to assets or liabilities relating to finance leases. Based upon the balances that existed as of December 31, 2018, the Company recorded adjustments to the following accounts as of January 1, 2019: As Reported Adjustments Adjusted December 31, 2018 Adoption of ASU 2016-02 January 1, 2019 Assets ROU assets for operating leases (a) $ — $ 201 $ 201 Liabilities Accrued liabilities (a) $ 199 $ (1 ) $ 198 Short-term operating lease liabilities — 52 52 Long-term operating lease liabilities — 154 154 Other noncurrent liabilities (a) 61 (4 ) 57 (a) The aggregate $5 million adjustment shown in accrued liabilities and other noncurrent liabilities relates to straight-line rent accruals that were reclassified to ROU assets for operating leases. Accounting Policy Under ASC 842, the Company determines if a contract contains a lease at the inception of the contract. A contract contains a lease if it conveys to the Company the right to control the use of specified assets. Operating leases are included in ROU assets and in other current liabilities and other non-current liabilities. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. ROU assets and lease liabilities are recognized at the present value of future lease payments. The discount rate used to measure the amount recognized is the Company’s incremental borrowing rate if an implicit rate is not determinable from the lease contract. Operating lease cost is recognized on a straight-line basis over the term of the lease. The Company leases land, production facilities, office space, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Further, the Company has elected not to separate lease and non-lease components of contracts for any asset classes, but rather to account for non-lease components together with their related lease components. For leases that include renewal options that the Company is reasonably certain to exercise, the Company includes the renewal period in its initial classification of the lease. Renewal options range from 1 year to 3 years. Variable lease payments do not depend on a published index or rate, and therefore, are expensed as incurred. The components of total net lease expense were as follows: Year Ended December 31, 2019 Operating lease expense $ 71 Sublease (income) (8 ) Variable lease expense 11 Total net lease expense $ 74 Operating lease expense includes $4 million of impairment recorded on ROU assets due to facility closures in Magazines, Catalogs and Logistics ($3 million) and Office Products ($1 million). The impairment charges are recorded in other restructuring charges. During the year ended December 31, 2019, the Company incurred a de minimis amount of finance lease cost, consisting of finance lease ROU asset amortization and interest on finance lease liabilities, and a de minimis amount of cost associated with short-term leases. Supplemental non-cash information related to leases is included below: Year Ended December 31, 2019 ROU assets acquired in exchange for lease obligations: ROU assets Operating leases $ 18 Lease obligations Operating leases $ 18 During the year ended December 31, 2019, the Company recorded $61 million of operating cash outflows from operating leases. During the year ended December 31, 2019, the Company recorded a de minimis amount of cash flows from financing leases. No finance lease ROU assets or obligations were acquired during the year ended December 31, 2019. Supplemental information regarding the weighted average lease term and discount rate is included below: December 31, 2019 Weighted Average Remaining Lease Term (years) Operating leases 5.0 Financing leases 2.1 Weighted Average Discount Rate Operating leases 8.6 % Financing leases 6.9 % The annual maturities of lease liabilities as of December 31, 2019 Operating Leases 2020 $ 53 2021 45 2022 35 2023 24 2024 19 2025 & thereafter 28 Total undiscounted lease payments 204 Imputed interest (33 ) Total lease liabilities $ 171 During the year ended December 31, 2019, the Company recorded a de minimis amount of maturities for finance lease liabilities. As of December 31, 2019, the Company has no additional operating leases that have not commenced. The Company also is a sublessor to land and building subleases for certain locations resulting from the acquisition of businesses or disposition of the Company’s business components. Some of these subleases have variable payments, either because payments are structured to follow the head lease or because the sublease includes reimbursement for utilities and other expenses. We recognize the rent-related portion of lease payments, including changes based on a published index or rate, on a straight-line basis and the variable portion related to utilities and other expenses in the period incurred. Our subleases have various renewal and termination options which generally allow for renewal for 1 year to 5 years, or termination notice that generally ranges from 90 days to 180 days. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Note 6. Accounts Receivable Transactions affecting the allowances for doubtful accounts receivable balance during the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Balance, beginning of year $ 14 $ 11 $ 10 Provisions charged to expense 7 7 3 Write-offs and other (9 ) (4 ) (2 ) Balance, end of period $ 12 $ 14 $ 11 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 7. Inventories The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2019 and 2018 were as follows: 2019 2018 Raw materials and manufacturing supplies $ 91 $ 119 Work in process 38 50 Finished goods 87 80 Last in, first out reserve (46 ) (52 ) Total $ 170 $ 197 During the years ended December 31, 2019, 2018 and 2017, the Company recognized LIFO benefit of $6 million, $5 million benefit and $1 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 8. Property, Plant and Equipment The components of the Company’s property, plant and equipment at December 31, 2019 and 2018 were as follows: 2019 2018 Land $ 35 $ 43 Buildings 663 709 Machinery and equipment 3,006 3,759 3,704 4,511 Less: Accumulated depreciation (3,264 ) (4,003 ) Total $ 440 $ 508 During the years ended December 31, 2019, 2018 and 2017, depreciation expense was $94 million, $112 million and $137 million, respectively. Refer to Note 10, Restructuring, Impairment and Other Charges Assets Held for Sale Primarily as a result of restructuring actions, certain facilities and equipment are considered held for sale. The net book value of assets held for sale was $9 million and $3 Restructuring, Impairment and Other Charges |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows: Magazines, Catalogs Office and Logistics Book Products Mexico Other Total Net book value as of January 1, 2018 Goodwill $ 502 $ 354 $ 110 $ — $ 78 $ 1,044 Accumulated impairment losses (502 ) (303 ) (79 ) — (78 ) (962 ) Total — 51 31 — — 82 Acquisition 21 — — — — 21 Net book value as of December 31, 2018 Goodwill $ 523 $ 354 $ 110 $ — $ 5 $ 992 Accumulated impairment losses (502 ) (303 ) (79 ) — (5 ) (889 ) Total 21 51 31 — — 103 Impairment charges — 51 — — — 51 Net book value as of December 31, 2019 Goodwill 523 354 110 — 5 992 Accumulated impairment losses (502 ) (354 ) (79 ) — (5 ) (940 ) Total $ 21 $ — $ 31 $ — $ — $ 52 During the year ended December 31, 2019, the Company recorded charges of $51 million to recognize the impairment of goodwill for Book segment. There was no impairment of goodwill during the year ended December 31, 2018. As a result of the Company’s disposition of its European printing business on September 28, 2018, Europe’s goodwill (included in the Other grouping) as of the disposition date, $73 million of gross goodwill and accumulated impairment losses for a net $0 balance, was written off on the disposition date. The components of other intangible assets at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 248 $ (149 ) $ 99 $ 268 $ (137 ) $ 131 Trade names 29 (8 ) 21 9 (6 ) 3 Total amortizable other intangible assets 277 (157 ) 120 277 (143 ) 134 Indefinite-lived trade names — — — 22 — 22 Total other intangible assets $ 277 $ (157 ) $ 120 $ 299 $ (143 ) $ 156 In the second quarter of 2019, the Company impaired certain definite-lived customer relationships with a net book value of $17 million within the Magazines, Catalogs and Logistics segment. Additionally, the Company recorded $1 million of impairment related to certain trade names during the year ended December 31, 2019. On January 1, 2019, all of Office Products’ tradenames (net book value of $21 million) were changed from indefinite-lived tradenames to definite-lived tradenames with a useful life of 15 years, as management determined that it was not possible to conclude the tradenames will generate cash flows for an indefinite period of time due to secular industry decline and changes in the usage of branded products . Amortization expense for other intangible assets was $18 million for each of the years ended December 31, 2019, 2018 and 2017. The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2019: For the year ending December 31, Amount 2020 $ 17 2021 15 2022 14 2023 13 2024 13 2025 and thereafter 48 Total $ 120 Refer to Note 10 , Restructuring, Impairment and Other Charges , for discussion of goodwill and intangibles impairment charges recorded during the years ended December 31, 2019 and 2018. |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other Charges | Note 10. Restructuring, Impairment and Other Charges Year Ended December 31, 2019 Other Total Year Ended Employee Restructuring Restructuring Other December 31, 2019 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 24 $ 18 $ 42 $ 25 $ — $ 67 Book 5 5 10 54 2 66 Office Products 1 3 4 — — 4 Mexico — — — — — — Other — — — — — — Corporate — 11 11 — — 11 Total $ 30 $ 37 $ 67 $ 79 $ 2 $ 148 Restructuring Charges For the year ended December 31, 2019, the Company incurred employee-related charges of $30 million for an aggregate of 2,150 employees, of whom 357 were terminated as of or prior to December 31, 2019, primarily related to five facility closures in the Magazines, Catalogs and Logistics segment and one facility closure in the Book segment. During the fourth quarter of 2019, the Company recorded a $26 million gain in cost of goods sold (in the consolidated statement of operations) related to the sale of land and a building associated with a plant closure in the Magazines, Catalogs and Logistics segment. The Company also incurred other restructuring charges of $37 million primarily due to facility costs, costs associated with new revenue opportunities and cost savings initiatives implemented in 2019, lease costs, and pension withdrawal obligations related to facility closures. Impairment Charges For the year ended December 31, 2019, the Company recorded the following net impairment charges, which are explained further below: Property, Plant Other Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 8 $ 17 $ — $ 25 Book 2 1 51 54 Total $ 10 $ 18 $ 51 $ 79 Goodwill The Company performs its goodwill impairment tests annually as of October 31, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test could be impacted by changes in market conditions and economic events. The Company determines the fair value of its reporting units using both the income approach and the market approach. The determination of the fair value using the income approach requires management to make significant estimates and assumptions related to projected operating results (including forecasted revenue and operating income), anticipated future cash flows, and discount rates. The determination of the fair value using the market approach requires management to make significant assumptions related to the multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”) used in the calculation. Additionally, the market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The Company weighs both the income and market approach equally to estimate the concluded fair value of each reporting unit. The determination of fair value and the allocation of that value to individual assets and liabilities requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, restructuring charges and capital expenditures. As part of its impairment test for its reporting units, the Company engages a third-party valuation firm to assist in the Company’s determination of certain assumptions used to estimate fair values. Interim Impairment Tests Performed in the Third Quarter of 2019 The Company’s stock price has experienced a significant, sustained decline – especially since the Merger Agreement termination was announced in late July 2019. Shortly after the Merger Agreement termination, the Company announced that it was indefinitely suspending its dividend and lowered its guidance for the year. As a result, the Company determined it necessary to perform goodwill impairment reviews on the Book, logistics and Office Products reporting units (the only reporting units that had goodwill) as of August 31, 2019. The Company performed a one-step method of for determining goodwill impairment for the three reporting units. As a result of the one-step impairment test for Book, logistics and Office Products, the Company did not recognize any goodwill impairment charges as of August 31, 2019 as the estimated fair values of the reporting units exceeded their respective carrying values. Book, logistics and Office Products passed with fair values that exceeded their carrying values by 28.2%, 55.9% and 16.8%, respectively. Impairment Tests Performed in the Fourth Quarter of 2019 The Company performed its annual impairment test as of October 31, 2019. The goodwill balances as of October 31, 2019 for the three reporting units that had goodwill were as follows: logistics ($21 million), Book ($51 million) and Office Products ($31 million). For the logistics, Book and Office Products reporting units, management assessed goodwill impairment risk by first performing a qualitative review of entity specific, industry, market and general economic factors for each reporting unit. As a result of the qualitative assessment for logistics and Office Products and considering that a goodwill impairment analysis was performed as of August 31, 2019 with no impairment recorded, the Company concluded it was more likely than not the fair values of the reporting units are greater than their carrying values, and therefore, the Company did not recognize any goodwill impairment charges. For Book, the Company was not able to conclude that it is more likely than not that the fair values of our reporting units are greater than their carrying values, and therefore, a one-step method for determining goodwill impairment was applied as of October 31, 2019. The Company compared the estimated fair value of a reporting unit with its carrying amount, including goodwill. As a result of the 2019 annual impairment test for Book, the Company fully impaired Book’s goodwill and recorded a $51 million goodwill impairment charge as the carrying value of the reporting unit did not exceed its estimated fair value. This is primarily due to the negative revenue trends experienced in the fourth quarter of 2019 and lower revenue forecasts in future years. Other Intangible Assets The Company evaluates the recoverability of other long-lived assets, including property, plant and equipment and certain identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company performs impairment tests of indefinite-lived intangible assets on an annual basis or more frequently in certain circumstances. Factors that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends. When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the carrying value of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying value over its fair value. Given the continued decline in demand in the magazines and catalogs reporting unit, management determined that a further review of the reporting unit’s intangible assets and property, plant and equipment for recoverability was appropriate during the second, third and fourth quarters in 2019: • As a result of the faster pace of decline in demand, negative revenue trends and lower expectations of future revenue to be derived from certain customer relationships, management determined that a certain definite-lived customer relationship intangible asset recorded in the magazines and catalogs reporting unit was not recoverable as a result of the recoverability test performed as of June 30, 2019. This resulted in the Company recording a $17 million impairment charge for the three months ended June 30, 2019, which fully impaired the asset. The impairment was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability. After recording the impairment charges, remaining definite-lived customer relationships in the Magazines, Catalogs and Logistics segment were $38 million as of December 31, 2019. • With respect to property, plant and equipment and right-of-use assets for operating leases, the Company performed a Step 1 recoverability test in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment. The recoverability test compares the estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition to the carrying value of the asset group; if the carrying value of the asset group exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset group’s carrying value over its fair value. Based upon management’s updated projection of cash flows for this asset group, management determined that the estimated future undiscounted cash flows were in excess of the asset group’s carrying value, resulting in no impairment loss as a result of these tests in 2019. In addition to the annual goodwill impairment test performed for Book as of October 31, 2019, the Company reviewed the reporting unit’s intangible assets and property, plant and equipment for recoverability in the fourth quarter of 2019. There were no impairment charges recorded as a result of the recoverability tests. The Company recognized impairment charges of $18 million related to intangible assets and $10 million related to machinery and equipment for the Company during the year ended December 31, 2019. The impairment recognized on machinery and equipment was primarily associated with facility closings in the Magazines, Catalogs and Logistics and Book segments. The Company will continue to perform interim reviews of goodwill for indicators of impairment each quarter to assess whether an interim impairment test is required for its goodwill balances or if recoverability tests are required for long-lived assets, including property, plant and equipment, and certain identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. Such reviews could result in future impairment charges, depending on the facts and circumstances in effect at the time of those reviews. Fair Value Measurement The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2019 is disclosed below. Year Ended As of December 31, 2019 December 31, 2019 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 10 $ — $ — Goodwill 51 — — Customer relationships 17 — — Indefinite-lived tradenames 1 — — Total $ 79 $ — $ — The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the current marketplace conditions. The Company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. Other Charges For the year ended December 31, 2019, the Company recorded other charges of $2 million for multiemployer pension plan withdrawal obligations unrelated to facility closures. The total liability for the withdrawal obligations associated with the Company’s decision to withdraw from certain multiemployer pension plans included in accrued liabilities and restructuring and multiemployer pension plan liabilities Retirement Plans The Company’s withdrawal liabilities could be affected by the financial stability of other employers participating in such plans and any decisions by those employers to withdraw from such plans in the future. While it is not possible to quantify the potential impact of future events or circumstances, reductions in other employers’ participation in multiemployer pension plans, including certain plans from which the Company has previously withdrawn, could have a material effect on the Company’s previously estimated withdrawal liabilities and consolidated statements of operations, balance sheets and cash flows. Year Ended December 31, 2018 Other Total Employee Restructuring Restructuring Other Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 10 $ 8 $ 18 $ 2 $ — $ 20 Book — 4 4 — 2 6 Office Products 1 2 3 3 — 6 Mexico — — — — — — Other 1 — 1 — — 1 Corporate 2 — 2 — — 2 Total $ 14 $ 14 $ 28 $ 5 $ 2 $ 35 Restructuring Charges For the year ended December 31, 2018, the Company incurred employee-related charges of $14 million for an aggregate of 811 employees, substantially all of whom were terminated as of or prior to December 31, 2019, primarily related to two facility closures in the Magazines, Catalogs and Logistics segment, one facility closure in the Office Products segment and the reorganization of certain business units and corporate functions. The Company also incurred other restructuring charges of $14 million primarily due to charges related to facility costs, a loss related to the Company's disposition of its retail offset printing facilities and pension withdrawal obligations related to facility closures. Impairment Charges For the year ended December 31, 2018, the Company recorded the following net impairment charges, which are explained further below: Property, Plant Other Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 3 $ — $ (1 ) $ 2 Office Products — 3 — 3 Total $ 3 $ 3 $ (1 ) $ 5 Property, Plant and Equipment The net charges of $3 million primarily related to machinery and equipment associated with facility closings in the Magazines, Catalogs and Logistics segment. Other Intangible Assets – Indefinite-Lived Tradenames The Company recorded charges of $3 million for the impairment of certain acquired indefinite-lived tradenames intangible assets in the Office Products segment. The impairment of the indefinite-lived tradenames intangible assets resulted from negative revenue trends experienced in recent years and lower expectations of future revenue to be derived from those tradenames. The impairment was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability. After recording the impairment charges, remaining indefinite-lived tradenames in the Office Products segment is $21 million. On January 1, 2019, all of Office Products’ tradenames were changed from indefinite-lived tradenames to definite-lived tradenames. Refer to Note 9, Goodwill and Other Intangible Assets , for more information. Goodwill The year ended December 31, 2018 included a reduction of $1 million of goodwill impairment charges as a result of a $1 million adjustment of previously recorded goodwill associated with the 2017 acquisitions. Fair Value Measurements The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2018 is disclosed below. Year Ended As of December 31, 2018 December 31, 2018 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 3 $ — $ — Indefinite-lived tradenames 3 21 21 Total $ 6 $ 21 $ 21 The table above excludes the reduction of $1 million of goodwill impairment charges mentioned in the above section Goodwill The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the current marketplace conditions. The Company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 22 Relief-from- Royalty Rate 0.5% - 1.5% royalty Other Charges For the year ended December 31, 2018, the Company recorded other charges of $2 million for multiemployer pension plan withdrawal obligations unrelated to facility closures. The total liability for the withdrawal obligations associated with the Company’s decision to withdraw from certain multiemployer pension plans included in accrued liabilities and restructuring and multiemployer pension plan liabilities Retirement Plans Year Ended December 31, 2017 Other Total Employee Restructuring Restructuring Other Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 6 $ 4 $ 10 $ 75 $ 1 $ 86 Book 5 2 7 5 3 15 Office Products 1 — 1 3 — 4 Mexico 1 — 1 — — 1 Other — 1 1 5 — 6 Corporate — 17 17 — — 17 Total $ 13 $ 24 $ 37 $ 88 $ 4 $ 129 Restructuring Charges For the year ended December 31, 2017, the Company incurred employee-related restructuring charges of $13 million for an aggregate of 776 employees, substantially all of whom were terminated as of or prior to December 31, 2019. These charges primarily related to three facility closures in the Book segment, one facility closure in the Magazines, Catalogs and Logistics segment and the reorganization of certain business units. The Company also incurred other restructuring charges of $24 million primarily related to the exit from certain operations and facilities, as well as charges as a result of a terminated supplier contact. Impairment Charges For the year ended December 31, 2017, the Company recorded the following net impairment charges, which are explained further below: Other Property, Plant Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 7 — $ 68 $ 75 Book — 5 — 5 Office Products — 3 — 3 Other — — 5 5 Total $ 7 $ 8 $ 73 $ 88 Property, Plant and Equipment The net charges of $7 million primarily related to impairment of machinery and equipment in the Company’s magazines and catalogs reporting unit, which is included in the Magazines, Catalogs and Logistics segment, resulting from general volume declines. Other Intangible Assets - Indefinite-Lived Tradenames The Company also recorded charges of $8 million for the impairment of certain acquired indefinite-lived tradename intangible assets, including $3 million in the Office Products segment and $5 million in the Book segment. The impairment of the indefinite-lived tradename intangible assets resulted from negative revenue trends experienced in recent years and lower expectations of future revenue to be derived from those tradenames. The impairment was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability. After recording the impairment charges, remaining indefinite-lived tradenames in the Office Products and Book segments were $23 million and $1 million, respectively. Goodwill With respect to the goodwill impairment charges, the Company completed several acquisitions during the year ended December 31, 2017, five of which were included in the Company’s former magazines, catalogs and retail inserts reporting unit, which was part of the former Print segment. Prior to the acquisitions completed within the last twelve months, the former magazines, catalogs and retail inserts reporting unit had zero goodwill recorded, as goodwill associated with this reporting unit had been fully impaired in prior years. Given the historical valuations of the former magazines, catalogs and retail inserts reporting unit that have resulted in goodwill impairment in prior years, combined with the change in the composition of the carrying value of the former reporting unit due to the acquisitions completed as of September 30, 2017, the Company determined it necessary to perform an interim goodwill impairment review on this former reporting unit as of September 30, 2017. As a result of the interim goodwill impairment test, and consistent with prior goodwill impairment tests, the former magazines, catalogs and retail inserts reporting unit’s fair value continued to be at a value below its carrying value. This was primarily due to the negative revenue trends experienced in recent years that are only partially offset by the impact of the new acquisitions. As such, the Company recorded charges of $ 55 million to recognize the impairment of goodwill in this former reporting unit as of September 30, 2017. The goodwill impairment charges were determined using Level 3 inputs, including discounted cash flow analyses, comparable marketplace fair value data and management’s assumptions. For the quarter ended December 31, 2017, the Company completed the acquisition of The Clark Group, Inc. (“Clark Group”) that became part of the former magazines, catalogs and retail inserts reporting unit. Given the amount by which the carrying amount of the former reporting unit exceeded its fair value in the goodwill impairment test performed as of September 30, 2017, combined with the fact that management’s assessment of the fair value did not materially change since that date, an additional goodwill impairment charge of $18 million was recorded in the period ended December 31, 2017, which represented all of the goodwill arising from the Clark Group acquisition and additional amounts related to acquisitions completed during the quarter ended September 30, 2017. The total charge to recognize the impairment of goodwill in the former magazines, catalogs and retail inserts reporting unit was $73 million for 2017, resulting in zero goodwill associated with former the magazines, catalogs and retail inserts reporting unit as of December 31, 2017. Fair Value Measurement The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2017 is disclosed below. Year Ended As of December 31, 2017 December 31, 2017 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 7 $ — $ — Goodwill 73 — — Indefinite-lived tradenames 8 23 23 Total $ 88 $ 23 $ 23 The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the current marketplace conditions. The Company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 24 Relief-from- Royalty Rate 0.5% - 1.5% royalty Other Charges For the year ended December 31, 2017, the Company recorded other charges of $4 million for multiemployer pension plan withdrawal obligations unrelated to facility closures. The total liability for the withdrawal obligations associated with the Company’s decision to withdraw from certain multiemployer pension plans included in accrued liabilities and restructuring and multiemployer pension plan liabilities are $6 million and $37 million, respectively, at December 31, 2017. Refer to Note 15, Retirement Plans Restructuring Reserve The restructuring reserve as of December 31, 2019 and 2018, and changes during the year ended December 31, 2019, were as follows: December 31, Restructuring Cash December 31, 2018 Charges Other Paid 2019 Employee terminations $ 8 $ 30 $ — $ (9 ) $ 29 Multiemployer pension plan withdrawal obligations 32 5 — (6 ) 31 Other and lease termination 1 27 — (26 ) 2 Total $ 41 $ 62 $ — $ (41 ) $ 62 The current portion of restructuring reserves of $37 million at December 31, 2019 was included in accrued liabilities, while the long-term portion of $25 million, which primarily related to multi-employer pension plan withdrawal obligations related to facility closures, was included in restructuring and multiemployer pension plan liabilities The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by December 31, 2020. Payments on all of the Company’s multiemployer pension plan withdrawal obligations are scheduled to be completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to multiemployer pension plan withdrawals. Refer to Note 15 , Retirement Plans, The activity in restructuring liabilities classified as “other and lease termination” primarily consisted of other facility closing costs, costs associated with new revenue opportunities and cost savings initiatives implemented in 2019 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 Cash December 31, 2017 Charges Other Paid 2018 Employee terminations $ 8 $ 14 $ — $ (14 ) $ 8 Multiemployer pension plan withdrawal obligations 16 3 19 (6 ) 32 Other 2 8 — (9 ) 1 Total $ 26 $ 25 $ 19 $ (29 ) $ 41 The current portion of restructuring reserves of $15 million at December 31, 2018 was included in accrued liabilities, while the long-term portion of $26 million, which primarily related to multi-employer pension plan withdrawal obligations related to facility closures, was included in restructuring and multiemployer pension plan liabilities at December 31, 2018. During the three months ended March 31, 2018, the Company reclassified $19 million of multiemployer pension plan withdrawal obligations from non-restructuring liabilities to restructuring liabilities, of which $3 million and $16 million were recorded in the current and long-term portions of the reserves, respectively. The reclassification was primarily due to facility closures in the Magazines, Catalogs and Logistics and Book segments during the three months ended March 31, 2018. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 11. Accrued Liabilities The components of the Company’s accrued liabilities at December 31, 2019 and 2018 were as follows: 2019 2018 Employee-related liabilities $ 69 $ 71 Customer-related liabilities 35 38 Deferred revenue 18 15 Restructuring liabilities 37 15 Other 52 60 Total accrued liabilities $ 211 $ 199 Employee-related liabilities consist primarily of payroll, workers’ compensation, employee benefits, and incentive compensation. Incentive compensation accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies As of December 31, 2019, the Company had commitments of $29 million for severance payments related to employee restructuring activities. In addition, as of December 31, 2019, the Company had commitments of approximately $9 million for the purchase of property, plant and equipment related to incomplete projects. The Company also has contractual commitments of approximately $35 million for outsourced services, including professional, maintenance and other services. Refer to Note 5, Leases annual maturities of operating lease liabilities. Litigation The Company is subject to laws and regulations relating to the protection of the environment. The Company accrues for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are generally not discounted. The Company has been designated as a potentially responsible party or has received claims in ten active federal and state Superfund and other multiparty remediation sites. In addition to these sites, the Company may also have the obligation to remediate three other previously and currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that the Company’s liability could be joint and several, meaning that the Company could be required to pay an amount in excess of its proportionate share of the remediation costs. The Company’s understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of the Company’s estimated liability. The Company established reserves, recorded in accrued liabilities and other noncurrent liabilities, that it believes are adequate to cover its share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that the Company may undertake in the future. However, in the opinion of management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material effect on the Company’s condensed consolidated balance sheets, statements of operations and cash flows. From time to time, the Company’s customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material effect on the Company’s consolidated balance sheets, statements of operations and cash flows. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 13. Debt The Company’s debt at December 31, 2019 and 2018 consisted of the following: 2019 2018 Borrowings under the Revolving Credit Facility $ 249 $ 64 Term Loan Facility due September 30, 2022 (a) 218 260 8.75% Senior Secured Notes due October 15, 2023 450 450 Finance lease and other obligations 2 4 Unamortized debt issuance costs (9 ) (11 ) Total debt 910 767 Less: current portion (465 ) (108 ) Long-term debt $ 445 $ 659 (a) The weighted-average interest rate on borrowings under the Company’s Revolving Credit Facility was 5.47% and 5.19% during the year ended December 31, 2019 and 2018, respectively (b) The borrowings under the Term Loan Facility are subject to a variable interest rate. As of December 31, 2019 and 2018, the interest rate was 7.12% and 8.02%, respectively. On September 30, 2016, the Company issued $450 million of Senior Secured Notes (the “Senior Notes”). On September 30, 2016 the Company entered into a credit agreement (the “Credit Agreement”) that provides for (i) a senior secured term loan B facility in an aggregate principal amount of $375 million (the “Term Loan Facility”) and (ii) a senior secured revolving credit facility in an aggregate principal amount of $400 million (the “Revolving Credit Facility”). The debt issuance costs and original issue discount are being amortized over the life of the facilities using the effective interest method. The Credit Agreement is subject to a number of covenants, including, but not limited to, a minimum Interest Coverage Ratio and a Consolidated 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. minimum Interest Coverage Ratio and the maximum Consolidated Leverage Ratio. Effective August 5, 2019, the Company further amended the Credit Agreement to, among other things, defer certain changes to the minimum Interest Coverage Ratio and the maximum Consolidated Leverage Ratio. The following summarizes the changes to the minimum Interest Coverage Ratio and the maximum Consolidated Leverage Ratio: Original December 20, 2018 August 5, 2019 Maximum Consolidated Leverage Ratio Current ratio 3.25 to 1.00 3.25 to 1.00 3.75 to 1.00 Step-down ratio 3.00 to 1.00 3.00 to 1.00 3.50 to 1.00 and 3.25 to 1.00 Step-down as of date (quarter ending on or after) March 31, 2019 March 31, 2020 June 30, 2020 and March 31, 2021 Minimum Interest Coverage Ratio Current ratio 3.25 to 1.00 3.25 to 1.00 2.50 to 1.00 Step-up ratio 3.50 to 1.00 3.50 to 1.00 2.75 to 1.00 and 3.00 to 1.00 Step-up as of date (quarter ending on or after) March 31, 2019 March 31, 2020 September 30, 2020 and June 30, 2021 Other terms, including the outstanding principal, maturity date and other debt covenants remained the same under the December 20, 2018 amendment. The August 5, 2019 amendment resulted in a reduction in the Revolving Credit Facility aggregate principal amount from $400 million to $300 million and removed the general allowance to declare and pay annual dividends of up to $50 million. The August 5, 2019 amendment included other changes that generally further restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The outstanding principal and maturity date of the Term Loan Facility remains the same, while the maturity date of the Revolving Credit Facility remains the same. As of December 31, 2019, the Company had $51 million in outstanding letters of credit issued under the Revolving Credit Facility. As of December 31, 2019, the Company also had no other uncommitted credit facilities. As of December 31, 2019, there were $249 million of borrowings under the Revolving Credit Facility. Based on final results of operations for the year ended December 31, 2019, the Company concluded it was not in compliance with the Consolidated Leverage Ratio and Minimum Interest Ratio contained in the Credit Agreement as of December 31, 2019. The noncompliance occurred on the last day of the fourth quarter due to the following: the Company’s Consolidated Leverage Ratio exceeded the maximum level permitted and the Company’s Minimum Interest Ratio was below the minimum level permitted. On March 2, 2020, the Company entered into a Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement with lenders constituting a majority under the Credit Agreement that governs the Company’s Revolving Credit Facility and Term Loan Facility. The Waiver, Forbearance Agreement and Fourth Amendment to Credit Agreement waives the defaults or events of default that have occurred as a result of the financial covenant noncompliance on December 31, 2019 and prevents the lenders from directing the Administrative Agent to accelerate the debt or exercise other remedies as a result of certain other potential defaults or events of default which may occur under the Credit Agreement (the “ Potential Defaults The amends certain provisions of the Credit Agreement and subjects the Company to certain restrictions on operating activities, including (i) until May 15, 2020, prohibiting actions that would not be permitted during the existence of a Default or Event of Default under the Credit Agreement (with certain exceptions), notwithstanding the waiver and forbearance relief granted; (ii) limiting the amount of cash which may be held at and investments which may be made in foreign subsidiaries; and (iii) reducing the threshold for determining what constitutes an “Asset Sale” under the Credit Agreement and prohibiting Asset Sales unless consented to in writing by lenders constituting a majority. The Waiver and Forbearance Agreement also provides that the agreement and the Forbearance Period may be terminated if the Company repays any principal amount of the Term Loan Facility or pays any amounts due under the Senior Notes, in each case without making a simultaneous and equivalent payment of principal of the Revolving Loans and a corresponding permanent reduction of the Total Revolving Commitments under the Credit Agreement. During the Forbearance Period, the loans under the Credit Agreement shall not accrue interest at the default rate set forth in the Credit Agreement. Additional Debt Issuances Information The fair values of the Senior Notes and Term Loan Facility that were determined using the market approach based upon interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s debt was lower than its book value by approximately $277 million at December 31, 2019 and greater than its book value by approximately $22 million at December 31, 2018. At December 31, 2019, the future maturities of debt, including capitalized leases, were as follows: Amount 2020 $ 472 2021 — 2022 — 2023 450 2024 — 2025 and thereafter — Total ( a ) $ 922 (a) Excludes unamortized debt issuance costs of $4 million and $5 million related to the Company’s Term Loan Facility and 8.75% Senior Notes due October 15, 2023, respectively, and a discount of $3 million related to the Company’s Term Loan Facility. These amounts do not represent contractual obligations with a fixed amount or maturity date. The following table summarizes interest expense included in the consolidated statements of operations: 2019 2018 2017 Interest incurred $ 77 $ 82 $ 73 Less: interest income (1 ) (2 ) (1 ) Interest expense-net $ 76 $ 80 $ 72 Interest paid, net of interest received, was $73 million, $76 million and $69 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14. Earnings Per Share During the years ended December 31, 2019, 2018 and 2017, a de minimis amount of shares were withheld from employees for tax liabilities upon vesting of equity awards. On May 31, 2018, the Company completed the repurchase approved by the Board of Directors of 1.6 million shares of common stock for a total cost of $20 million. Fairrington Transportation Corp., F.T.C. Transport, Inc. and F.T.C. Services, Inc. (“Fairrington”) Basic earnings per share (“EPS”) is calculated by dividing net earnings attributable to the Company’s stockholders by the weighted average number of common shares outstanding for the period. In computing diluted EPS, basic EPS is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock, restricted stock units (“RSUs”), and performance share units (“PSUs”). The following table shows the calculation of basic and diluted EPS, as well as a reconciliation of basic shares to diluted shares: 2019 2018 2017 Net (loss) per common share: Basic $ (8.82 ) $ (0.67 ) $ (1.69 ) Diluted $ (8.82 ) $ (0.67 ) $ (1.69 ) Numerator: Net (loss) $ (295 ) $ (23 ) $ (57 ) Denominator: Weighted average number of common shares outstanding 33.4 33.8 33.8 Dilutive options and awards — — — Diluted weighted average number of common shares outstanding 33.4 33.8 33.8 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 15. Retirement Plans Defined Benefits Overview The Company is the sole sponsor of certain defined benefit pension plans that are included in the consolidated balance sheets as of December 31, 2019 and 2018. The Company’s primary single employer defined benefit pension plans are frozen. No new employees will be permitted to enter these plans and participants will earn no additional benefits. The assets and certain obligations of the defined benefit pension plans includes plans qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Qualified Plan”) and related non-qualified benefits (the “Non-Qualified Plan”). The Qualified Plan will be funded in conformity with the applicable government regulations, such that the Company from time to time contributes at least the minimum amount required using actuarial cost methods and assumptions acceptable under government regulations. The Non-Qualified Plan is unfunded, and the Company pays retiree benefits as they become due. The Company engages outside actuaries to assist in the determination of the obligations and costs under these plans. The Company records annual income and expense amounts relating to its pension plans based on calculations that include various actuarial assumptions such as discount rates, mortality, assumed rate of return, compensation increases, and turnover rates. 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 effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into investment and other (income)-net 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. The benefit 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 and inactive plan participants. In the first quarter of 2019, the Company completed a partial settlement of its retirement benefit obligations by purchasing a group annuity contract for certain retirees and beneficiaries from a third-party insurance company. As a result, the Company’s pension assets and liabilities were required to be remeasured as of the settlement date. As of the remeasurement date, the reduction in the reported pension obligation for the participants under the annuity contract was $477 million, and the reduction in plan assets was $466 million. The Company recorded a non-cash settlement charge of $135 million in the first quarter of 2019 that is disclosed in settlements of retirement obligations in the consolidated statement of operations. This charge resulted from the recognition in earnings of a portion of the actuarial losses recorded in accumulated other comprehensive loss based on the proportion of the obligation settled. There were additional immaterial lump-sum settlements related to the U.S. Qualified Plan (unrelated to the transaction noted above) during the year ended December 31, 2019 that resulted in non-cash settlement charges of $2 million. The Company made contributions totaling $6 million to its pension plans during the year ended December 31, 2019. Based on the plans’ regulatory funded status, there are no required contributions for the Company’s U.S. Qualified Plan in 2020. The required contributions in 2020, primarily for the Non-Qualified Plan, are expected to be approximately $6 million. Defined Benefit Plans – Financial Information Financial information regarding the Qualified, Non-Qualified and International plans is shown below: 2019 2018 2017 Non-Qualified Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Qualified & International Total Interest cost $ 73 $ 4 $ 77 $ 84 $ 3 $ 87 $ 86 $ 3 $ 89 Expected return on plan assets (123 ) — (123 ) (155 ) — (155 ) (153 ) — (153 ) Amortization of actuarial loss 10 1 11 19 1 20 17 1 18 Settlements 137 — 137 — — — — — — Net periodic benefit (income) expense $ 97 $ 5 $ 102 $ (52 ) $ 4 $ (48 ) $ (50 ) $ 4 $ (46 ) Weighted average assumption used to calculate net Discount rate 4.3 % 4.6 % 4.3 % 3.5 % 3.8 % 3.5 % 4.3 % 4.3 % 4.3 % Expected return on plan assets 6.5 % 7.8 % 6.5 % 6.7 % 7.8 % 6.7 % 6.9 % 7.9 % 6.9 % The accumulated benefit obligation for the Qualified Plan was $2,159 million and $2,318 million at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for the LSC Communications sponsored defined benefit Non-Qualified and international pension plans was $95 million and $86 million at December 31, 2019 and 2018, respectively. 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Benefit obligation at beginning of year $ 2,318 $ 88 $ 2,406 $ 2,572 $ 95 $ 2,667 Interest cost 73 4 77 84 3 87 Actuarial loss (gain) 325 11 336 (211 ) (6 ) (217 ) Settlements (474 ) (1 ) (475 ) — — — Benefits paid (83 ) (5 ) (88 ) (127 ) (4 ) (131 ) Benefit obligation at end of year $ 2,159 $ 97 $ 2,256 $ 2,318 $ 88 $ 2,406 Fair value of plan assets at beginning of year $ 2,265 $ 4 $ 2,269 $ 2,478 $ 2 $ 2,480 Actual return on assets 382 — 382 (86 ) — (86 ) Employer contributions — 6 6 — 6 6 Settlements (474 ) (1 ) (475 ) — — — Benefits paid (83 ) (5 ) (88 ) (127 ) (4 ) (131 ) Fair value of plan assets at end of year $ 2,090 4 $ 2,094 $ 2,265 $ 4 $ 2,269 Unfunded status at end of year $ (69 ) $ (93 ) $ (162 ) $ (53 ) $ (84 ) $ (137 ) 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accrued benefit cost (included in accrued liabilities) $ — $ (6 ) $ (6 ) $ — $ (5 ) $ (5 ) Pension liabilities (69 ) (87 ) (156 ) (53 ) (79 ) (132 ) Net liabilities recognized in the consolidated balance sheets $ (69 ) $ (93 ) $ (162 ) $ (53 ) $ (84 ) $ (137 ) 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, 2019 and 2018 were as follows: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accumulated other comprehensive loss Net actuarial loss $ (604 ) $ (33 ) $ (637 ) $ (686 ) $ (22 ) $ (708 ) Total $ (604 ) $ (33 ) $ (637 ) $ (686 ) $ (22 ) $ (708 ) The pre-tax amounts recognized in other comprehensive loss in 2019 as components of net periodic costs were as follows: Non-Qualified Qualified & International Total Amortization of: Net actuarial loss $ 10 $ 1 $ 11 Amounts arising during the period: Settlements 137 — 137 Net actuarial (loss) gain (65 ) (12 ) (77 ) Total $ 82 $ (11 ) $ 71 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. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2020 are shown below. Non- Qualified Qualified & International Total Amortization of: Net actuarial loss $ 18 $ 1 $ 19 The weighted-average assumptions used to determine the net benefit obligation at the measurement date were as follows: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Discount rate 3.3 % 3.4 % 3.3 % 4.4 % 4.5 % 4.4 % The following table provides a summary of pension plans with projected benefit obligations in excess of plan assets as of December 31, 2019 and 2018: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Projected benefit obligation $ 2,159 $ 97 $ 2,256 $ 2,318 $ 85 $ 2,403 Fair value of plan assets 2,090 4 2,094 2,265 — $ 2,265 The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2019 and 2018: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accumulated benefit obligation $ 2,159 $ 93 $ 2,252 $ 2,318 $ 85 $ 2,403 Fair value of plan assets 2,090 1 2,091 2,265 — 2,265 The Company determines its assumption for the discount rate to be used for purposes of computing annual service and interest costs based on an index of high-quality corporate bond yields and matched-funding yield curve analysis as of the measurement date. Benefit payments are expected to be paid as follows: Non-Qualified Qualified & International Total 2020 $ 95 $ 6 $ 101 2021 100 6 106 2022 106 6 112 2023 110 6 116 2024 116 6 122 2025-2029 608 30 638 Defined Benefit Plans - Plan Assets The Company’s overall investment approach for its U.S. Qualified Plan 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. Over time, the target asset allocation percentage for the pension plan is expected to decrease for equity and other “return seeking” investments and increase for fixed income and other “hedging” investments. The assumed long-term rate of return for plan assets, which is determined annually, is likely to decrease as the asset allocation shifts over time. The expected long-term rate of return for plan assets is based upon many factors including asset allocation, 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 U.S. Qualified Plan was approximately 40.0% for return seeking investments and approximately 60.0% for hedging investments. Management reviews the performance of its investments on a quarterly basis. The Company segregated its plan assets by the following major categories and levels for determining their fair value as of December 31, 2019 and 2018: 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 that are valued using the amortized cost method. As such, these assets were classified as Level 2. Equity— The value of individual equity securities was 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. Additionally, this category includes underlying securities in trust owned life insurance policies that are invested in certain fixed income securities. These investments are not quoted on active markets; therefore, they are classified as Level 2. Other— This category includes investments in commodity and structured credit funds that are not quoted on active markets; therefore, they are classified as Level 2. Investments measured at NAV as a practical expedient— The Company invests in certain equity, fixed income, real estate and private equity funds that are valued at calculated NAV per share. In accordance with FASB guidance investments that are measured at fair value using the NAV per share as a practical expedient have not been classified in the fair value hierarchy. The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that 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. The fair values of the Company’s pension plan assets at December 31, 2019 and 2018, by asset category were as follows: December 31, 2019 December 31, 2018 Asset Category Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents $ 22 $ 13 $ 35 $ 54 $ 17 $ 71 Equity 357 — 357 343 — 343 Fixed income 52 1,259 1,311 — 1,389 1,389 Other — 2 2 — 1 1 Investments measurement at NAV as a practical expedient — — 389 — — 465 Total $ 431 $ 1,274 $ 2,094 $ 397 $ 1,407 $ 2,269 Other Plans Employer 401(k) Savings Plan— Effective September 2, 2016, LSC Communications initiated its own 401(k) plan. Under the LSC Savings Plan (the “Plan”), eligible employees have the option to contribute a percentage of eligible compensation on both a before-tax and after-tax basis. Effective January 1, 2017, LSC Communications amended the Plan to provide a company match equal to $0.50 of every pre-tax and Roth 401(k) dollar a participating employee contributes to the Plan up to the first 3.0% of such participant’s pay. Multiemployer Pension Plans —Multiemployer plans receive contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan. The risk and level of uncertainty related to participating in these multiemployer pension plans differs significantly from the risk associated with the Company-sponsored defined benefit plans. For example, investment decisions are made by parties unrelated to the Company and the financial stability of other employers participating in a plan may affect the Company’s obligations under the plan. During the years ended December 31, 2019, 2018 and 2017, the Company recorded restructuring, impairment and other charges relating to multiemployer pension plan withdrawal obligations of: Year Ended Unrelated to Related to December 31, Facility Closures Facility Closures Total 2019 $ 2 $ 5 $ 7 2018 $ 2 $ 3 $ 5 2017 $ 4 $ 1 $ 5 Refer to Note 10 , Restructuring, Impairment and Other Charges, for further details of charges related to complete or partial multiemployer pension plan withdrawal liabilities recognized in the consolidated statements of operations. The Company’s withdrawal liabilities could be affected by the financial stability of other employers participating in the plans and any decisions by those employers to withdraw from the plans in the future. While it is not possible to quantify the potential impact of future events or circumstances, reductions in other employers’ participation in multiemployer pension plans, including certain plans from which the Company has previously withdrawn, could have a material impact on the Company’s previously estimated withdrawal liabilities, may affect consolidated statements of operations, balance sheets or cash flows. As a result of the acquisition of Courier, the Company participates in two multiemployer pension plans as of December 31, 2019, for one of which the Company’s contributions represent approximately 85% of the total plan contributions. Both plans are estimated to be underfunded and have a red zone status, designated as a result of low contribution funding levels, under the Pension Protection Act. As a result of a plant closure in the Book segment, the Company expects to withdraw from these two multiemployer plans in 2020. The Company recorded a multiemployer liability of $2 million primarily in long-term restructuring and multi-employer pension liabilities in the consolidated balance sheet as of December 31, 2019. During each of the years ended December 31, 2019, 2018 and 2017, the Company made de minimis contributions to these two multiemployer pension plans. Additionally, the Company made $9 million of contributions related to other plans from which the Company has completely withdrawn from for each of the years ended December 31, 2019, 2018 and 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes Income tax expense (benefit) information Income taxes have been based on the following components of (loss) earnings from operations before income taxes for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 U.S. $ (313 ) $ (18 ) $ (71 ) Foreign 25 28 27 Total $ (288 ) $ 10 $ (44 ) The components of income tax expense (benefit) from operations for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Current U.S. federal $ — $ 4 $ 20 U.S. state and local — 1 1 Foreign 5 7 7 Current income tax expense 5 12 28 Deferred U.S. federal (5 ) (3 ) (11 ) U.S. state and local 6 (2 ) (4 ) Foreign 1 26 — Deferred income tax expense (benefit) 2 21 (15 ) Income tax expense $ 7 $ 33 $ 13 Refer to Note 17, Comprehensive Income 2018 Disposition As described in Note 3, Business Combinations and Disposition The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate: 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % Intraperiod allocation exception under ASC 740-20 6.4 — — State and local income taxes, net of U.S. federal income tax benefit 4.0 (12.0 ) 4.0 Disposition of European printing business — 242.4 — International investment tax credit — 6.2 25.9 Domestic manufacturing deduction — — 1.3 Section 162(m) limitation (0.1 ) 8.2 (5.1 ) Meals and entertainment disallowance (0.1 ) 4.4 (1.3 ) Withholding taxes (0.1 ) 3.2 — Foreign tax rate differential (0.2 ) 9.6 6.5 Fringe benefits disallowance (0.2 ) 4.5 — Non-deductible share-based compensation (0.5 ) 11.4 (8.9 ) Impact of the Tax Act Transition tax — 9.0 (36.2 ) Deferred tax effects — 4.4 (19.2 ) Foreign income inclusion (1.0 ) 0.7 — Impairment charges (3.2 ) 1.3 (21.8 ) Change in valuation allowances (29.3 ) (5.0 ) (22.6 ) Other 1.0 10.1 11.9 Effective income tax rate (2.3 %) 319.4 % (30.5 %) The income tax expense or benefit from continuing operations is generally determined without regard to other categories of earnings, such as other comprehensive income (“OCI”). An exception is provided, however, under ASC 740-20, Income Taxes, when there is income from OCI and a loss from continuing operations in the current year. The tax benefit allocated to continuing operations is the amount by which the loss from continuing operations reduces the tax expense recorded with respect to OCI, even though a valuation allowance has been established against the deferred tax asset in the current year. Thus, the Company recorded a valuation allowance of $67 million in continuing operations, representing an $85 million valuation allowance on continuing operations partially offset by a tax benefit of $18 million related to income in OCI (and a corresponding tax provision of $18 million in OCI), as shown in the reconciliation above. Deferred income taxes The significant deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: 2019 2018 Deferred tax assets: Pension plan liabilities $ 47 $ 41 Lease liabilities 40 — Accrued liabilities 37 35 Interest expense carryforward 32 15 Net operating losses and other tax carryforwards 19 17 Foreign depreciation 5 6 Other 2 3 Total deferred tax assets 182 117 Valuation allowances (77 ) (11 ) Net deferred tax assets $ 105 $ 106 Deferred tax liabilities: ROU assets $ (38 ) $ — Accelerated depreciation (29 ) (38 ) Other intangible assets (17 ) (25 ) Revenue recognition (6 ) (4 ) Inventories (2 ) (7 ) Other (6 ) (5 ) Total deferred tax liabilities (98 ) (79 ) Net deferred tax assets $ 7 $ 27 Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Balance, beginning of year $ 11 $ 115 $ 87 Current year expense-net 66 — 9 Disposition of European printing business — (108 ) — Foreign exchange and other — 4 19 Balance, end of year $ 77 $ 11 $ 115 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated is the U.S. cumulative loss incurred over the three-year that it anticipates a three-year As of December 31, 2019, the Company had interest expense carryforward, domestic and foreign net operating loss deferred tax assets and other tax carryforwards of approximately $51 million and $0 million ($32 million and $0 million, respectively, at December 31, 2018), of which $11 million expires between 2020 and 2029. Limitations on the utilization of these tax assets may apply. Cash payments for income taxes were $9 million, $11 million and $36 million during the years ended December 31, 2019, 2018 and 2017, respectively. Cash refunds for income taxes were $2 million, $10 million and a de minimis amount during the years ended December 31, 2019, 2018 and 2017, respectively. Uncertain tax positions As of December 31, 2019, the Company had a de minimis amount of unrecognized tax benefits and no unrecognized tax benefits as of December 31, 2018 and 2017. Interest expense and any related penalties related to income tax uncertainties are classified as a component of income tax expense. There was a de minimis amount of interest expense, net of tax benefits, related to tax uncertainties recognized in the consolidated statements of operations for the years ended December 31, 2019, and no interest expense for the years ended December 31, 2018 and 2017. No benefits were recognized for the years ended December 31, 2019, 2018 and 2017 from the reversal of accrued penalties. There was a de minimis amount of interest accrued related to income tax uncertainties at December 31, 2019 and no interest expense as of December 31, 2018. There were no accrued penalties related to income tax uncertainties for the years ended December 31, 2019 and 2018. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income | Note 17. Comprehensive Income The following table summarizes the change in accumulated other comprehensive loss by component for the years ended December 31, 2019, 2018 and 2017. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2016 $ (462 ) $ (69 ) $ (531 ) Other comprehensive income before reclassifications 23 21 44 Amounts reclassified from accumulated other comprehensive loss 11 — 11 Net change in accumulated other comprehensive loss 34 21 55 Balance at December 31, 2017 $ (428 ) $ (48 ) $ (476 ) Other comprehensive loss before reclassifications (19 ) (7 ) (26 ) Amounts reclassified from accumulated other comprehensive loss 15 — 15 Reclassification to accumulated deficit (97 ) — (97 ) Net change in accumulated other comprehensive loss (101 ) (7 ) (108 ) Balance at December 31, 2018 $ (529 ) $ (55 ) $ (584 ) Other comprehensive income before reclassifications 46 2 48 Amounts reclassified from accumulated other comprehensive loss 8 — 8 Net change in accumulated other comprehensive loss 54 2 56 Balance at December 31, 2019 $ (475 ) $ (53 ) $ (528 ) In the first quarter of 2019, the Company completed a partial settlement of its retirement benefit obligations and, as a result, the Company’s pension assets and liabilities were remeasured as of the settlement date. The impact, net of tax, to the Company’s accumulated other comprehensive loss was a decrease of $105 million. Additional immaterial lump-sum settlements during the year ended December 31, 2019 increased the net accumulated other comprehensive loss balance by $2 million to a total net of tax impact of $107 million. Refer to Note 15, Retirement Plans The Company adopted ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”) in the first quarter of 2018. Refer to the statements of comprehensive income for the components of comprehensive income for the years ended December 31, 2019, 2018 and 2017. Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Amortization of pension plan cost: Net actuarial loss (a) $ 11 $ 20 $ 18 Reclassifications before tax 11 20 18 Income tax expense 3 5 7 Reclassifications, net of tax $ 8 $ 15 $ 11 (a) These accumulated other comprehensive income components are included in the calculation of net periodic pension benefits plan (income) expense that is recognized all in investment and other (income)-net in the consolidated statements of operations (refer to Note 15, Retirement Plans |
Stock and Incentive Programs
Stock and Incentive Programs | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation [Abstract] | |
Stock and Incentive Programs | Note 18. Stock and Incentive Programs General Terms of the Awards The Company’s employees participate in the Company’s 2016 Performance Incentive Plan (the “2016 PIP”). Under the 2016 PIP, the Company may grant cash or bonus awards, stock options, stock appreciation rights, restricted stock awards (“RSAs”), RSUs, performance awards or combinations thereof to certain officers, directors and key employees. The rights granted to the recipient of RSAs, RSUs and performance restricted stock (“PRS”) generally accrue ratably over the restriction or vesting period, which is generally three years. RSUs and RSAs 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 of the Company. Compensation expense is based on the fair market value of the awards on the date of grant expensed ratably over the periods during which restrictions lapse. Share-Based Compensation Expense Total compensation expense related to all share based compensation plans for the Company’s employees, officers and directors was $7 million, $12 million and $13 million for the years ended December 31, 2019, 2018 and 2017, respectively. There were net tax benefits of a de minimis amount, $1 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively. Stock Options There was no significant activity related to stock options during the year December 31, 2019. Restricted Stock Units A summary of the Company’s RSU activity for LSC Communications employees, officers and directors as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 897 $ 19.65 Granted 927 6.28 Vested (338 ) 25.59 Forfeited (182 ) 10.15 Nonvested at December 31, 2019 1,304 $ 9.93 During the year ended December 31, 2019, 926,870 RSUs were granted to certain executive officers and senior management. The shares are subject to time-based vesting and will cliff vest on February 25, 2022. As of December 31, 2019, the total potential payout for the awards granted during the year ended December 31, 2019 is 810,780 RSUs. The fair value of these awards was determined based on the Company’s stock price on the grant date reduced by the present value of expected dividends through the vesting period. These awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death, permanent disability or retirement of the grantee or change of control of the Company. Compensation expense related to LSC Communications, RRD and Donnelley Financial RSUs held by Company employees, officers and directors was $4 million, $6 million and $9 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $6 million of unrecognized share-based compensation expense related to approximately 1.3 million RSUs outstanding, with a weighted-average grant date fair value of $9.93, that are expected to vest over a weighted-average period of 1.7 years. Restricted Stock Awards A summary of RSA activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 45 $ 26.26 Vested (42 ) 26.26 Forfeited (3 ) 26.26 Nonvested at December 31, 2019 — $ — Compensation expense related to RSAs was $1 million for each of the years ended December 31, 2019, 2018 and 2017. Performance Restricted Stock A summary of PRS activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 133 $ 27.16 Vested (89 ) 26.26 Forfeited (11 ) 28.94 Nonvested at December 31, 2019 33 $ 28.94 During the years ended December 31, 2017 and 2016, 44,760 and 266,072 shares of PRS were granted to certain executive officers, payable upon the achievement of certain established performance targets. The performance periods for the shares awarded in 2017 and 2016 are In addition to being subject to achievement of the performance target, the shares awarded in 2016 are also subject to time-based vesting in 3 even tranches on October 1, 2017, October 1, 2018 and October 1, 2019. 88,694 shares vested on October 2, 2019. For all awards, the performance-based vesting and the time-based vesting must be met for the PRS to vest. The fair value of these awards was determined on the date of grant based on the Company’s stock price. These awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death, permanent disability or retirement of the grantee or change of control of the Company. Compensation expense for the awards granted during the year ended December 31, 2017 is being recognized based on an estimated payout of 33,370 shares. Compensation expense for the awards granted during the year ended December 31, 2016 was recognized based on a payout of 266,072 shares. Performance Share Units A summary of PSU activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 258 $ 13.85 Forfeited (27 ) 13.68 Nonvested at December 31, 2019 231 $ 13.87 There were no shares granted in 2019. Shares granted in 2018 and 2017 consisted of 248,583 and 28,520 PSUs, respectively, granted during the years ended December 31, 2018 and 2017 to certain members of senior management, respectively, payable upon the achievement of certain established performance targets. As of December 31, 2019, compensation expense for the PSUs granted in 2017 is being recognized based on an estimated payout of 24,612 shares. As of December 31, 2019, no compensation expense is being recognized for the PSUs granted in 2018 due to the Company’s expected performance against the target. In addition to being subject to achievement of the performance target, the PSUs granted in 2018 and 2017 are also subject to time-based vesting on March 2, 2021 and March 2, 2020, respectively. Both the performance-based vesting and the time-based vesting must be met for the PSUs to vest. The fair value of these awards was determined based on the Company’s stock price on the grant date reduced by the present value of expected dividends through the vesting period. These awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death, permanent disability or retirement of the grantee or change of control of the Company. There was a de minimis amount and $1 million of compensation expense related to PSUs for each of the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, there was a de minimis amount of unrecognized compensation expense related to PSUs granted in 2017, which is expected to be recognized over a weighted average period of 0.2 years. There is no unearned compensation as of December 31, 2019 related to PSUs granted in 2018. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19. Segment Information As a result of the Company’s segment analysis in the fourth quarter of 2019, Mexico met the requirements to be classified as a reportable segment (previously included as a non-reportable segment). All prior year amounts have been reclassified to conform to the Company’s current reporting structure. The Company’s segment and product and service offerings are summarized below: Magazines, Catalogs and Logistics The Magazines, Catalogs and Logistics segment primarily produces magazines and catalogs and provides logistics solutions to the Company and other third parties. The segment also provides certain other print-related services, including mail services. The segment has operations primarily in the U.S. The Magazines, Catalogs and Logistics segment is divided into two reporting units: magazines and catalogs; and logistics. The Magazines, Catalogs and Logistics segment accounted for approximately 47% of the Company’s consolidated net sales in 2019. Book The Book segment produces books for publishers primarily in the U.S. The segment also provides supply-chain management services and warehousing and fulfillment services, as well as e-book formatting for book publishers. The Book segment accounted for approximately 30% of the Company’s consolidated net sales in 2019. Office Products The Office Products segment manufactures and sells branded and private label products in five core categories: filing products, envelopes, note-taking products, binder products, and forms. The Office Products segment accounted for approximately 16% of the Company’s consolidated net sales in 2019. Mexico Mexico produces magazines, catalogs, statements, forms, and labels. The Mexico segment accounted for approximately 3% of the Company’s net sales in 2019. Other The Other grouping consists of the following non-reportable segments: Directories, Print Management and Europe. Print Management provides outsourced print procurement and management services. produced magazines, catalogs and directories and provided packaging and pre-media services. The Other grouping consists of approximately 4% of the Company’s consolidated net sales in 2019 Corporate Corporate consists of unallocated selling, general and administrative activities and associated expenses including executive, legal, finance, communications, certain facility costs and LIFO inventory provisions. In addition, share-based compensation expense is 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 with the consolidated financial statements. Income (Loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2019 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,559 $ (114 ) $ 645 $ 54 $ 35 Book 1,011 (36 ) 482 49 30 Office Products 517 42 275 12 2 Mexico 91 14 69 4 1 Total reportable segments 3,178 (94 ) 1,471 119 68 Other 149 7 29 1 — Corporate (1 ) (70 ) 149 — 3 Total operations $ 3,326 $ (157 ) $ 1,649 $ 120 $ 71 Income (loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2018 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,767 $ (31 ) $ 726 $ 62 $ 24 Book 1,055 58 572 52 31 Office Products 562 40 298 13 1 Mexico 97 13 73 4 1 Total reportable segments 3,481 80 1,669 131 57 Other 347 13 5 6 2 Corporate (2 ) (51 ) 80 1 4 Total operations $ 3,826 $ 42 $ 1,754 $ 138 $ 63 Income (loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2017 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,583 $ (73 ) $ 780 $ 72 $ 24 Book 1,022 62 553 60 13 Office Products 495 42 377 15 5 Mexico 98 14 74 3 6 Total reportable segments 3,198 45 1,784 150 48 Other 405 14 148 8 4 Corporate — (78 ) 82 2 8 Total operations $ 3,603 $ (19 ) $ 2,014 $ 160 $ 60 Corporate assets primarily consisted of the following items at December 31, 2019, 2018 and 2017: 2019 2018 2017 Cash and cash equivalents $ 80 $ 11 $ 12 Software 17 19 17 Long-term investments 16 14 13 Property, plant and equipment, net 15 14 14 Prepaid expenses and other current assets 15 12 10 Receivables, less allowances for doubtful accounts 14 17 19 Right-of-use assets for operating leases 10 — — Deferred income tax assets, net of valuation allowance 1 22 19 LIFO reserves (46 ) (52 ) (57 ) Refer to Note 5, Leases Restructuring, impairment and other charges by segment for the year ended December 31, 2019, 2018 and 2017 are described in Note 10, Restructuring, Impairment and Other Charges. |
Geographic Areas
Geographic Areas | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographic Areas | Note 20. Geographic Areas The table below presents net sales and long-lived assets by geographic region. North America (b) Europe Mexico Consolidated 2019 Net sales $ 3,176 $ 52 $ 98 $ 3,326 Long-lived assets (a) 487 — 30 517 2018 Net sales $ 3,495 $ 225 $ 106 $ 3,826 Long-lived assets (a) 571 — 30 601 2017 Net sales $ 3,226 $ 271 $ 106 $ 3,603 Long-lived assets (a) 607 32 36 675 (a) Includes net property, plant and equipment and other noncurrent assets. (b) North America includes the United States and Canada. As explained in Note 3, Business Combinations and Disposition the Company completed the sale of its European printing business (formerly known as the Europe segment) on September 28, 2018. The Company’s Office Products segment maintains operations in Europe. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 21. Related Parties On March 28, 2017, RRD completed the sale of approximately 6.2 million shares of LSC Communications common stock, representing its entire 19.25% retained ownership. RRD’s ownership was initially retained on October 1, 2016 as a result of RRD’s separation into three separate independent publicly-traded companies, which included LSC Communications and Donnelley Financial Solutions. Transactions with RRD Revenues and Purchases Given that RRD sold its remaining stake in LSC Communications on March 28, 2017, the following information is presented for the three months ended March 31, 2017 only. LSC Communications generates net revenue from sales to RRD’s subsidiaries. Net revenues from related party sales were $32 million There were cost of sales of $51 million for the three months ended March 31, 2017 related to freight, logistics and premedia services purchased from RRD. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 22. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13 “Financial Instruments-Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 changes the accounting for credit losses on financial instruments, including accounts receivable. The standard will require the Company to measure expected credit losses on trade receivables based on historical experience, current conditions, and reasonable forecasts. ASU 2016-13 is effective in the first quarter of 2020. Upon adoption of ASU 2016-13, the Company is required to recognize an allowance for doubtful accounts on all accounts receivable balances, including unbilled accounts receivables, even if the risk of loss is remote. Based upon the balances that exist as of December 31, 2019, the Company will record a de minimis increase to its allowance for doubtful accounts in the first quarter of 2020. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU modifies the disclosure requirements for fair value measurements. ASU 2018-13 is effective in the first quarter of 2020. The Company does not anticipate a significant impact. In August 2018, the FASB issued Accounting Standards Update No. 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). ASU 2018-14 modifies the annual disclosure requirements for employers that sponsor defined benefit pension plans. ASU 2018-14 is effective for 2020 year-end disclosures. Early adoption of ASU 2018-14 is permitted; however, the Company plans to adopt the standard for the 2020 year-end disclosures. The Company does not anticipate a significant impact. In August 2018, the FASB issued Accounting Standards Update No. 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). ASU 2018-15 aligns the accounting for implementation costs for cloud computing arrangements with the accounting for costs involved in implementing an internal-use software license. ASU 2018-15 is effective in the first quarter of 2020; however, as early adoption is permitted, the Company adopted ASU 2018-15 in the first quarter of 2019. The adoption did not have a material impact during the year ended December 31, 2019. In December 2019, the FASB issued Accounting Standards Update No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"). ASU 2019-12 removes certain exceptions for intraperiod tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes, including a modification in the guidance for franchise taxes that are partially based on income and recognizing deferred taxes for a subsequent step-up in the tax basis of goodwill. ASU 2019-12 is effective in the first quarter of 2021. Early adoption of ASU 2019-12 is permitted; however, the Company plans to adopt the standard in the first quarter of 2021. The Company is in the process of assessing the impact of the new standard. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates —The preparation of the consolidated 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, disclosure of contingent assets and liabilities at the date of the financial statements, and 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, self-insurance reserves, 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. |
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. 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 — As explained in Note 1, Overview and Basis of Presentation , the Company adopted ASC 606, on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2019 and 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared and continue to be reported under previous guidance. The Company recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the performance obligation has been completed and the customer obtains control of the products, which is generally upon shipment to the customer (dependent upon specific shipping terms). Under agreements with certain customers, custom products may be stored by the Company for future delivery. Based upon contractual terms, the Company is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). In these situations, the Company may also receive a logistics or warehouse management fee for the services it provides, which the Company recognizes over time as the services are provided. With certain customer contracts, the Company is permitted to complete a pre-defined amount of custom products and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, which include consigned inventory, the Company has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Based upon contractual terms, the Company recognizes revenue once the performance obligation has been satisfied and the customer obtains control of the completed products, usually when production is completed. In very limited situations, the Company is permitted to produce and hold in inventory a pre-defined amount of custom products as safety stock. Similar to completed production held in inventory, for these items, the Company has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Based upon our evaluation of the contractual terms, the Company is able to recognize revenue once the performance obligation has been satisfied and the customer obtains control of the completed product, usually when production is completed. Revenue from the Company’s print related services (including list processing, mail sortation services and supply chain management) is recognized as services are completed over time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. Variable consideration resulting from volume rebates, fixed rebates, penalties or credits for paper consumption, and sales discounts that are offered within contracts between the Company and its customers is recognized in the period the related revenue is recognized. Estimates of variable consideration are based on stated contract terms and an analysis of historical experience. The amount of variable consideration is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts 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, not distinct. For contracts with multiple performance obligations, such as co-mail and catalog production, the transaction price allocated to each performance obligation is based on the price stated in the customer contract, which represents the Company’s best estimate of the standalone selling price of each distinct good or service in the contract. Billings for shipping and handling costs are recorded gross. The Company made an accounting policy election under ASC 606 to account for shipping and handling after the customer obtains control of the good as fulfillment activities rather than as a separate service to the customer. As a result, the Company accrues the costs of the shipping and handling if revenue is recognized for the related good before the fulfillment activities occur. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers as part of the end product. No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis. As a result, the Company’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 120 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. The timing of revenue recognition, billings and cash collections results in accounts receivable and unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Revenue recognition generally coincides with the Company’s contractual right to consideration and the issuance of invoices to customers. Depending on the nature of the performance obligation and arrangements with customers, the timing of the issuance of invoices may result in contract assets or contract liabilities. Contract assets related to unbilled receivables are recognized for satisfied performance obligations for which the Company cannot yet issue an invoice. Contract liabilities result from advances or deposits from customers on performance obligations not yet satisfied. Because the majority of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer returns at the time of sale. Refer to Note 4, Revenue Recognition . |
By-Product Recoveries | By-product recoveries —The Company records the sale of by-products as a reduction of cost of sales. |
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 our net sales in 2019, 2018 or 2017. 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. Refer to Note 6, 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 net realizable value and net of excess and obsolescence reserves for raw materials and finished goods. 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. The cost of 65.1% and 63.0% of the inventories at December 31, 2019 and 2018, respectively, has been determined using the Last-In, First-Out (“LIFO”) method. The LIFO method is intended to reflect the effect of inventory replacement costs within the consolidated statements of operations; accordingly, charges to cost of sales generally reflect recent costs of material, labor and factory overhead. The Company uses an external-index method of valuing LIFO inventories. The remaining inventories, primarily related to certain acquired and international operations, are valued using the First-In, First-Out (“FIFO”) or specific identification methods. |
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 and other intangible assets, that are held for sale, 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. |
Goodwill | Goodwill —Goodwill is assigned to a specific reporting unit, depending on the nature of the acquired company. 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 value. 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 unit’s 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 value. As a result of the Company’s early adoption of ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350)” during the third quarter of 2017, if the carrying value exceeds the reporting unit’s fair value, the Company recognizes an impairment charge equal to the amount by which the carrying value exceeds the reporting unit’s fair value not to exceed the total amount of goodwill recorded. Refer to Note 10, Restructuring, Impairment and Other Charges, |
Amortization | Amortization —Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of 3 years. Amortization expense, primarily related to internally-developed software and excluding amortization expense related to other intangible assets, was $9 million, $9 million and $5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred debt issuance costs are amortized over the term of the related debt. Other intangible assets, except for those intangible assets with indefinite lives, are recognized separately from goodwill and are amortized over their estimated useful lives. Other intangible assets with indefinite lives ar e not amortized. Refer to Note 9 , Goodwill and Other Intangible Assets, for further discussion of other intangible assets and the related amortization expense. |
Share-Based Compensation | Share-Based Compensation — The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. Refer to Note 18, for further discussion. |
Leases | Leases — As explained in Note 1, Overview and Basis of Presentation , the Company adopted ASC 842, on January 1, 2019 using the modified retrospective adoption method. Under ASC 842, the Company determines if a contract contains a lease at the inception of the contract. A contract contains a lease if it conveys to the Company the right to control the use of specified assets. Operating leases are included in ROU assets and in other current liabilities and other non-current liabilities. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. ROU assets and lease liabilities are recognized at the present value of future lease payments. The discount rate used to measure the amount recognized is the Company’s incremental borrowing rate if an implicit rate is not determinable from the lease contract. Operating lease cost is recognized on a straight-line basis over the term of the lease. The Company leases land, production facilities, office space, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Further, the Company has elected not to separate lease and non-lease components of contracts for any asset classes, but rather to account for non-lease components together with their related lease components. For leases that include renewal options that the Company is reasonably certain to exercise, the Company includes the renewal period in its initial classification of the lease. Renewal options range from 1 year to 3 years. Variable lease payments do not depend on a published index or rate, and therefore, are expensed as incurred. |
Pension Benefits Plans | Pension Benefits Plans — T he Company records annual income and expense amounts relating to its pension plans based on calculations that include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. 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 effect 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 15, Retirement Plans , for information on settlements recorded by the Company in 2019. |
Taxes on Income | Taxes on Income —The Company has recorded deferred tax assets related to future deductible items, including domestic and foreign tax loss and credit carryforwards. The Company evaluates these deferred tax assets by tax jurisdiction. The utilization of these tax assets is limited by the amount of taxable income expected to be generated within the allowable carryforward period and other factors. Accordingly, the Company has recorded valuation allowances to reduce certain of these deferred tax assets when 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. A significant piece of objective negative evidence is the cumulative loss incurred over the three-year Significant judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities and any valuation allowance recorded against deferred tax assets. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various U.S. and foreign tax authorities. The Company recognizes a tax position in its financial statements when it is more likely than not (a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s consolidated financial statements. As of December 31, 2019, a de minimis amount of unrecognized tax benefits were recognized in the consolidated balance sheets. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. Refer to Note 16 , Income Taxes, |
Comprehensive Income (Loss) | Comprehensive Income (Loss) —Comprehensive income (loss) for the Company consists of net earnings, unrecognized actuarial gains and losses and foreign currency translation adjustments. Refer to Note 17 for further discussion. |
Business Combinations and Dis_2
Business Combinations and Disposition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three | The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the year ended December 31, 2018: Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 22 Relief-from- Royalty Rate 0.5% - 1.5% royalty Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 24 Relief-from- Royalty Rate 0.5% - 1.5% royalty |
Pro Forma Financial Information | The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s consolidated statements of operations that would have been reported had this acquisition been completed as of the beginning of the period presented and should not be taken as indicative of the Company’s future consolidated statements of operations. Pro forma adjustments are tax-effected at the applicable statutory tax rates. Year ended December 31, 2019 2018 Net sales $ 3,326 $ 3,911 Net (loss) (295 ) (26 ) Net (loss) per common share Basic $ (8.82 ) $ (0.77 ) Diluted $ (8.82 ) $ (0.77 ) The following table outlines unaudited pro forma financial information for the years ended December 31, 2019 and 2018: Year ended December 31, 2019 2018 Amortization of purchased intangibles $ 18 $ 19 |
2018 Acquisition | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation for Acquisitions | The final purchase price allocation for Print Logistics was as follows: Accounts Receivable $ 40 Prepaid expenses and other current assets 1 Property, plant and equipment 8 Other intangible assets 17 Goodwill 21 Accounts payable and accrued liabilities (35 ) Purchase price and net cash paid $ 52 |
Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three | The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements associated with Print Logistics : Fair Value Valuation Technique Unobservable Input Value Customer relationships $ 17 Multi-period excess earnings method Existing customer growth rate (3.5%) Attrition rate 7.5% Discount rate 18.0% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table provides information about disaggregated revenue by major products/service lines and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments. Year Ended December 31, 2019 Magazines, Catalogs and Office Logistics Book Products Mexico Other Corporate Total Major Products / Service Lines Book (a) $ — $ 1,011 $ — $ — $ — $ — $ 1,011 Magazines and Catalogs (b) $ 1,218 $ — $ — $ 91 $ 81 $ — $ 1,390 North America 1,218 — — 91 81 — 1,390 Europe — — — — — — — Logistics $ 341 $ — $ — $ — $ — $ — $ 341 Directories $ — $ — $ — $ — $ 68 $ — $ 68 North America — — — — 68 — 68 Europe — — — — — — — Office Products $ — $ — $ 517 $ — $ — $ (1 ) $ 516 Total $ 1,559 $ 1,011 $ 517 $ 91 $ 149 $ (1 ) $ 3,326 Timing of Revenue Recognition Products and services transferred at a point in time $ 1,106 $ 871 $ 517 $ 91 $ 68 $ (1 ) $ 2,652 Products and services transferred over time 453 140 — — 81 — 674 Total $ 1,559 $ 1,011 $ 517 $ 91 $ 149 $ (1 ) $ 3,326 Year Ended December 31, 2018 Magazines, Catalogs and Office Logistics Book Products Mexico Other Corporate Total Major Products / Service Lines Book (a) $ — $ 1,055 $ — $ — $ — $ — $ 1,055 Magazines and Catalogs (b) $ 1,497 $ — $ — $ 97 $ 241 $ — $ 1,835 North America 1,497 — — 97 77 — 1,671 Europe — — — — 164 — 164 Logistics $ 270 $ — $ — $ — $ — $ — $ 270 Directories $ — $ — $ — $ — $ 106 $ — $ 106 North America — — — — 92 — 92 Europe — — — — 14 — 14 Office Products $ — $ — $ 562 $ — $ — $ (2 ) $ 560 Total $ 1,767 $ 1,055 $ 562 $ 97 $ 347 $ (2 ) $ 3,826 Timing of Revenue Recognition Products and services transferred at a point in time $ 1,371 $ 929 $ 562 $ 97 $ 270 $ (2 ) $ 3,227 Products and services transferred over time 396 126 — — 77 — 599 Total $ 1,767 $ 1,055 $ 562 $ 97 $ 347 $ (2 ) $ 3,826 (a) Includes e-book formatting and supply chain management associated with book production (b) Includes premedia and co-mail |
Schedule of Changes in the Contract Assets and Liabilities | The following table provides changes in contract assets and liabilities during the year ended December 31, 2019. Short-Term Contract Assets Long-Term Contract Assets Contract Liabilities Beginning Balance, January 1, 2019 $ 44 $ 30 $ 16 Additions to unbilled accounts receivable 38 — — Unbilled accounts receivable recognized in trade receivables (42 ) — — Payment of contract acquisition costs — 3 — Amortization of contract acquisition costs — (12 ) — Write-off due to termination of contract acquisition costs — (7 ) — Revenue recognized that was included in contract liabilities as of January 1, 2019 — — (12 ) Increases due to cash received — — 13 Ending Balance, December 31, 2019 $ 40 $ 14 $ 17 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Components of Total Net Lease Expense | The components of total net lease expense were as follows: Year Ended December 31, 2019 Operating lease expense $ 71 Sublease (income) (8 ) Variable lease expense 11 Total net lease expense $ 74 |
Supplemental Non-cash Information Related to Leases | Supplemental non-cash information related to leases is included below: Year Ended December 31, 2019 ROU assets acquired in exchange for lease obligations: ROU assets Operating leases $ 18 Lease obligations Operating leases $ 18 |
Supplemental Information Regarding Weighted Average Lease Term and Discount Rate | Supplemental information regarding the weighted average lease term and discount rate is included below: December 31, 2019 Weighted Average Remaining Lease Term (years) Operating leases 5.0 Financing leases 2.1 Weighted Average Discount Rate Operating leases 8.6 % Financing leases 6.9 % |
Schedule of Annual Maturities of Lease Liabilities | The annual maturities of lease liabilities as of December 31, 2019 Operating Leases 2020 $ 53 2021 45 2022 35 2023 24 2024 19 2025 & thereafter 28 Total undiscounted lease payments 204 Imputed interest (33 ) Total lease liabilities $ 171 |
ASU 2016-02 | |
Impact of Adopting Accounting Standards Update Adjustment to Accounts | Based upon the balances that existed as of December 31, 2018, the Company recorded adjustments to the following accounts as of January 1, 2019: As Reported Adjustments Adjusted December 31, 2018 Adoption of ASU 2016-02 January 1, 2019 Assets ROU assets for operating leases (a) $ — $ 201 $ 201 Liabilities Accrued liabilities (a) $ 199 $ (1 ) $ 198 Short-term operating lease liabilities — 52 52 Long-term operating lease liabilities — 154 154 Other noncurrent liabilities (a) 61 (4 ) 57 (a) The aggregate $5 million adjustment shown in accrued liabilities and other noncurrent liabilities relates to straight-line rent accruals that were reclassified to ROU assets for operating leases. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable | Transactions affecting the allowances for doubtful accounts receivable balance during the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Balance, beginning of year $ 14 $ 11 $ 10 Provisions charged to expense 7 7 3 Write-offs and other (9 ) (4 ) (2 ) Balance, end of period $ 12 $ 14 $ 11 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of the Company's Inventories | The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2019 and 2018 were as follows: 2019 2018 Raw materials and manufacturing supplies $ 91 $ 119 Work in process 38 50 Finished goods 87 80 Last in, first out reserve (46 ) (52 ) Total $ 170 $ 197 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 were as follows: 2019 2018 Land $ 35 $ 43 Buildings 663 709 Machinery and equipment 3,006 3,759 3,704 4,511 Less: Accumulated depreciation (3,264 ) (4,003 ) Total $ 440 $ 508 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows: Magazines, Catalogs Office and Logistics Book Products Mexico Other Total Net book value as of January 1, 2018 Goodwill $ 502 $ 354 $ 110 $ — $ 78 $ 1,044 Accumulated impairment losses (502 ) (303 ) (79 ) — (78 ) (962 ) Total — 51 31 — — 82 Acquisition 21 — — — — 21 Net book value as of December 31, 2018 Goodwill $ 523 $ 354 $ 110 $ — $ 5 $ 992 Accumulated impairment losses (502 ) (303 ) (79 ) — (5 ) (889 ) Total 21 51 31 — — 103 Impairment charges — 51 — — — 51 Net book value as of December 31, 2019 Goodwill 523 354 110 — 5 992 Accumulated impairment losses (502 ) (354 ) (79 ) — (5 ) (940 ) Total $ 21 $ — $ 31 $ — $ — $ 52 |
Components of Other Intangible Assets | The components of other intangible assets at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 248 $ (149 ) $ 99 $ 268 $ (137 ) $ 131 Trade names 29 (8 ) 21 9 (6 ) 3 Total amortizable other intangible assets 277 (157 ) 120 277 (143 ) 134 Indefinite-lived trade names — — — 22 — 22 Total other intangible assets $ 277 $ (157 ) $ 120 $ 299 $ (143 ) $ 156 |
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, 2019: For the year ending December 31, Amount 2020 $ 17 2021 15 2022 14 2023 13 2024 13 2025 and thereafter 48 Total $ 120 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring, Impairment and Other Charges | Year Ended December 31, 2019 Other Total Year Ended Employee Restructuring Restructuring Other December 31, 2019 Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 24 $ 18 $ 42 $ 25 $ — $ 67 Book 5 5 10 54 2 66 Office Products 1 3 4 — — 4 Mexico — — — — — — Other — — — — — — Corporate — 11 11 — — 11 Total $ 30 $ 37 $ 67 $ 79 $ 2 $ 148 Other Total Employee Restructuring Restructuring Other Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 10 $ 8 $ 18 $ 2 $ — $ 20 Book — 4 4 — 2 6 Office Products 1 2 3 3 — 6 Mexico — — — — — — Other 1 — 1 — — 1 Corporate 2 — 2 — — 2 Total $ 14 $ 14 $ 28 $ 5 $ 2 $ 35 Year Ended December 31, 2017 Other Total Employee Restructuring Restructuring Other Terminations Charges Charges Impairment Charges Total Magazines, Catalogs and Logistics $ 6 $ 4 $ 10 $ 75 $ 1 $ 86 Book 5 2 7 5 3 15 Office Products 1 — 1 3 — 4 Mexico 1 — 1 — — 1 Other — 1 1 5 — 6 Corporate — 17 17 — — 17 Total $ 13 $ 24 $ 37 $ 88 $ 4 $ 129 |
Schedule of Net Impairment Charges | For the year ended December 31, 2019, the Company recorded the following net impairment charges, which are explained further below: Property, Plant Other Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 8 $ 17 $ — $ 25 Book 2 1 51 54 Total $ 10 $ 18 $ 51 $ 79 For the year ended December 31, 2018, the Company recorded the following net impairment charges, which are explained further below: Property, Plant Other Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 3 $ — $ (1 ) $ 2 Office Products — 3 — 3 Total $ 3 $ 3 $ (1 ) $ 5 For the year ended December 31, 2017, the Company recorded the following net impairment charges, which are explained further below: Other Property, Plant Intangible and Equipment Assets Goodwill Total Magazines, Catalogs and Logistics $ 7 — $ 68 $ 75 Book — 5 — 5 Office Products — 3 — 3 Other — — 5 5 Total $ 7 $ 8 $ 73 $ 88 |
Assets Measured at Fair Value on a Nonrecurring Basis | The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2019 is disclosed below. Year Ended As of December 31, 2019 December 31, 2019 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 10 $ — $ — Goodwill 51 — — Customer relationships 17 — — Indefinite-lived tradenames 1 — — Total $ 79 $ — $ — The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2018 is disclosed below. Year Ended As of December 31, 2018 December 31, 2018 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 3 $ — $ — Indefinite-lived tradenames 3 21 21 Total $ 6 $ 21 $ 21 The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the year ended December 31, 2017 is disclosed below. Year Ended As of December 31, 2017 December 31, 2017 Fair Value Impairment Measurement Net Book Charge (Level 3) Value Long-lived assets held and used $ 7 $ — $ — Goodwill 73 — — Indefinite-lived tradenames 8 23 23 Total $ 88 $ 23 $ 23 |
Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three | The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the year ended December 31, 2018: Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 22 Relief-from- Royalty Rate 0.5% - 1.5% royalty Valuation Unobservable Fair Value Technique Input Range Indefinite-lived tradenames $ 24 Relief-from- Royalty Rate 0.5% - 1.5% royalty |
Schedule of Changes in the Restructuring Reserve | The restructuring reserve as of December 31, 2019 and 2018, and changes during the year ended December 31, 2019, were as follows: December 31, Restructuring Cash December 31, 2018 Charges Other Paid 2019 Employee terminations $ 8 $ 30 $ — $ (9 ) $ 29 Multiemployer pension plan withdrawal obligations 32 5 — (6 ) 31 Other and lease termination 1 27 — (26 ) 2 Total $ 41 $ 62 $ — $ (41 ) $ 62 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 Cash December 31, 2017 Charges Other Paid 2018 Employee terminations $ 8 $ 14 $ — $ (14 ) $ 8 Multiemployer pension plan withdrawal obligations 16 3 19 (6 ) 32 Other 2 8 — (9 ) 1 Total $ 26 $ 25 $ 19 $ (29 ) $ 41 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Components of Accrued Liabilities | The components of the Company’s accrued liabilities at December 31, 2019 and 2018 were as follows: 2019 2018 Employee-related liabilities $ 69 $ 71 Customer-related liabilities 35 38 Deferred revenue 18 15 Restructuring liabilities 37 15 Other 52 60 Total accrued liabilities $ 211 $ 199 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of the Company's Debt | The Company’s debt at December 31, 2019 and 2018 consisted of the following: 2019 2018 Borrowings under the Revolving Credit Facility $ 249 $ 64 Term Loan Facility due September 30, 2022 (a) 218 260 8.75% Senior Secured Notes due October 15, 2023 450 450 Finance lease and other obligations 2 4 Unamortized debt issuance costs (9 ) (11 ) Total debt 910 767 Less: current portion (465 ) (108 ) Long-term debt $ 445 $ 659 (a) The weighted-average interest rate on borrowings under the Company’s Revolving Credit Facility was 5.47% and 5.19% during the year ended December 31, 2019 and 2018, respectively (b) The borrowings under the Term Loan Facility are subject to a variable interest rate. As of December 31, 2019 and 2018, the interest rate was 7.12% and 8.02%, respectively. |
Summary of Changes to Minimum Interest Coverage Ratio and Maximum Consolidated Leverage Ratio | The following summarizes the changes to the minimum Interest Coverage Ratio and the maximum Consolidated Leverage Ratio: Original December 20, 2018 August 5, 2019 Maximum Consolidated Leverage Ratio Current ratio 3.25 to 1.00 3.25 to 1.00 3.75 to 1.00 Step-down ratio 3.00 to 1.00 3.00 to 1.00 3.50 to 1.00 and 3.25 to 1.00 Step-down as of date (quarter ending on or after) March 31, 2019 March 31, 2020 June 30, 2020 and March 31, 2021 Minimum Interest Coverage Ratio Current ratio 3.25 to 1.00 3.25 to 1.00 2.50 to 1.00 Step-up ratio 3.50 to 1.00 3.50 to 1.00 2.75 to 1.00 and 3.00 to 1.00 Step-up as of date (quarter ending on or after) March 31, 2019 March 31, 2020 September 30, 2020 and June 30, 2021 |
Future Maturities of Debt | At December 31, 2019, the future maturities of debt, including capitalized leases, were as follows: Amount 2020 $ 472 2021 — 2022 — 2023 450 2024 — 2025 and thereafter — Total ( a ) $ 922 (a) Excludes unamortized debt issuance costs of $4 million and $5 million related to the Company’s Term Loan Facility and 8.75% Senior Notes due October 15, 2023, respectively, and a discount of $3 million related to the Company’s Term Loan Facility. These amounts do not represent contractual obligations with a fixed amount or maturity date. |
Summary of Interest Expense | The following table summarizes interest expense included in the consolidated statements of operations: 2019 2018 2017 Interest incurred $ 77 $ 82 $ 73 Less: interest income (1 ) (2 ) (1 ) Interest expense-net $ 76 $ 80 $ 72 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS as Well as Reconciliation of Basic Shares to Diluted Shares | The following table shows the calculation of basic and diluted EPS, as well as a reconciliation of basic shares to diluted shares: 2019 2018 2017 Net (loss) per common share: Basic $ (8.82 ) $ (0.67 ) $ (1.69 ) Diluted $ (8.82 ) $ (0.67 ) $ (1.69 ) Numerator: Net (loss) $ (295 ) $ (23 ) $ (57 ) Denominator: Weighted average number of common shares outstanding 33.4 33.8 33.8 Dilutive options and awards — — — Diluted weighted average number of common shares outstanding 33.4 33.8 33.8 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Financial Information Regarding Qualified, Non-Qualified and Internationals Plans | Financial information regarding the Qualified, Non-Qualified and International plans is shown below: 2019 2018 2017 Non-Qualified Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Qualified & International Total Interest cost $ 73 $ 4 $ 77 $ 84 $ 3 $ 87 $ 86 $ 3 $ 89 Expected return on plan assets (123 ) — (123 ) (155 ) — (155 ) (153 ) — (153 ) Amortization of actuarial loss 10 1 11 19 1 20 17 1 18 Settlements 137 — 137 — — — — — — Net periodic benefit (income) expense $ 97 $ 5 $ 102 $ (52 ) $ 4 $ (48 ) $ (50 ) $ 4 $ (46 ) Weighted average assumption used to calculate net Discount rate 4.3 % 4.6 % 4.3 % 3.5 % 3.8 % 3.5 % 4.3 % 4.3 % 4.3 % Expected return on plan assets 6.5 % 7.8 % 6.5 % 6.7 % 7.8 % 6.7 % 6.9 % 7.9 % 6.9 % |
Reconciliation of Benefit Obligation, Plan Assets and Unfunded Status of Plans | 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Benefit obligation at beginning of year $ 2,318 $ 88 $ 2,406 $ 2,572 $ 95 $ 2,667 Interest cost 73 4 77 84 3 87 Actuarial loss (gain) 325 11 336 (211 ) (6 ) (217 ) Settlements (474 ) (1 ) (475 ) — — — Benefits paid (83 ) (5 ) (88 ) (127 ) (4 ) (131 ) Benefit obligation at end of year $ 2,159 $ 97 $ 2,256 $ 2,318 $ 88 $ 2,406 Fair value of plan assets at beginning of year $ 2,265 $ 4 $ 2,269 $ 2,478 $ 2 $ 2,480 Actual return on assets 382 — 382 (86 ) — (86 ) Employer contributions — 6 6 — 6 6 Settlements (474 ) (1 ) (475 ) — — — Benefits paid (83 ) (5 ) (88 ) (127 ) (4 ) (131 ) Fair value of plan assets at end of year $ 2,090 4 $ 2,094 $ 2,265 $ 4 $ 2,269 Unfunded status at end of year $ (69 ) $ (93 ) $ (162 ) $ (53 ) $ (84 ) $ (137 ) |
Amounts Recognized on Consolidated Balance Sheets | 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accrued benefit cost (included in accrued liabilities) $ — $ (6 ) $ (6 ) $ — $ (5 ) $ (5 ) Pension liabilities (69 ) (87 ) (156 ) (53 ) (79 ) (132 ) Net liabilities recognized in the consolidated balance sheets $ (69 ) $ (93 ) $ (162 ) $ (53 ) $ (84 ) $ (137 ) |
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, 2019 and 2018 were as follows: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accumulated other comprehensive loss Net actuarial loss $ (604 ) $ (33 ) $ (637 ) $ (686 ) $ (22 ) $ (708 ) Total $ (604 ) $ (33 ) $ (637 ) $ (686 ) $ (22 ) $ (708 ) |
Amounts Recognized in Other Comprehensive Loss | The pre-tax amounts recognized in other comprehensive loss in 2019 as components of net periodic costs were as follows: Non-Qualified Qualified & International Total Amortization of: Net actuarial loss $ 10 $ 1 $ 11 Amounts arising during the period: Settlements 137 — 137 Net actuarial (loss) gain (65 ) (12 ) (77 ) Total $ 82 $ (11 ) $ 71 |
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year | 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. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2020 are shown below. Non- Qualified Qualified & International Total Amortization of: Net actuarial loss $ 18 $ 1 $ 19 |
Weighted-Average Assumptions Used to Determine Net Benefit Obligation | The weighted-average assumptions used to determine the net benefit obligation at the measurement date were as follows: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Discount rate 3.3 % 3.4 % 3.3 % 4.4 % 4.5 % 4.4 % |
Summary of Projected Benefit Obligations in Excess of Plan Assets | The following table provides a summary of pension plans with projected benefit obligations in excess of plan assets as of December 31, 2019 and 2018: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Projected benefit obligation $ 2,159 $ 97 $ 2,256 $ 2,318 $ 85 $ 2,403 Fair value of plan assets 2,090 4 2,094 2,265 — $ 2,265 |
Accumulated Benefit Obligations in Excess of Plan Assets | The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2019 and 2018: 2019 2018 Non-Qualified Non-Qualified Qualified & International Total Qualified & International Total Accumulated benefit obligation $ 2,159 $ 93 $ 2,252 $ 2,318 $ 85 $ 2,403 Fair value of plan assets 2,090 1 2,091 2,265 — 2,265 |
Expected Benefit Payments | Benefit payments are expected to be paid as follows: Non-Qualified Qualified & International Total 2020 $ 95 $ 6 $ 101 2021 100 6 106 2022 106 6 112 2023 110 6 116 2024 116 6 122 2025-2029 608 30 638 |
Allocation of Plan Assets, Pension Plan | The fair values of the Company’s pension plan assets at December 31, 2019 and 2018, by asset category were as follows: December 31, 2019 December 31, 2018 Asset Category Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents $ 22 $ 13 $ 35 $ 54 $ 17 $ 71 Equity 357 — 357 343 — 343 Fixed income 52 1,259 1,311 — 1,389 1,389 Other — 2 2 — 1 1 Investments measurement at NAV as a practical expedient — — 389 — — 465 Total $ 431 $ 1,274 $ 2,094 $ 397 $ 1,407 $ 2,269 |
Schedule of Multiemployer Pension Plan | During the years ended December 31, 2019, 2018 and 2017, the Company recorded restructuring, impairment and other charges relating to multiemployer pension plan withdrawal obligations of: Year Ended Unrelated to Related to December 31, Facility Closures Facility Closures Total 2019 $ 2 $ 5 $ 7 2018 $ 2 $ 3 $ 5 2017 $ 4 $ 1 $ 5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Earnings from Operations Before Income Taxes | Income taxes have been based on the following components of (loss) earnings from operations before income taxes for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 U.S. $ (313 ) $ (18 ) $ (71 ) Foreign 25 28 27 Total $ (288 ) $ 10 $ (44 ) |
Components of Income Tax Expense (Benefit) from Operations | The components of income tax expense (benefit) from operations for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Current U.S. federal $ — $ 4 $ 20 U.S. state and local — 1 1 Foreign 5 7 7 Current income tax expense 5 12 28 Deferred U.S. federal (5 ) (3 ) (11 ) U.S. state and local 6 (2 ) (4 ) Foreign 1 26 — Deferred income tax expense (benefit) 2 21 (15 ) Income tax expense $ 7 $ 33 $ 13 |
Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate | The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate: 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % Intraperiod allocation exception under ASC 740-20 6.4 — — State and local income taxes, net of U.S. federal income tax benefit 4.0 (12.0 ) 4.0 Disposition of European printing business — 242.4 — International investment tax credit — 6.2 25.9 Domestic manufacturing deduction — — 1.3 Section 162(m) limitation (0.1 ) 8.2 (5.1 ) Meals and entertainment disallowance (0.1 ) 4.4 (1.3 ) Withholding taxes (0.1 ) 3.2 — Foreign tax rate differential (0.2 ) 9.6 6.5 Fringe benefits disallowance (0.2 ) 4.5 — Non-deductible share-based compensation (0.5 ) 11.4 (8.9 ) Impact of the Tax Act Transition tax — 9.0 (36.2 ) Deferred tax effects — 4.4 (19.2 ) Foreign income inclusion (1.0 ) 0.7 — Impairment charges (3.2 ) 1.3 (21.8 ) Change in valuation allowances (29.3 ) (5.0 ) (22.6 ) Other 1.0 10.1 11.9 Effective income tax rate (2.3 %) 319.4 % (30.5 %) |
Significant Deferred Tax Assets and Liabilities | The significant deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: 2019 2018 Deferred tax assets: Pension plan liabilities $ 47 $ 41 Lease liabilities 40 — Accrued liabilities 37 35 Interest expense carryforward 32 15 Net operating losses and other tax carryforwards 19 17 Foreign depreciation 5 6 Other 2 3 Total deferred tax assets 182 117 Valuation allowances (77 ) (11 ) Net deferred tax assets $ 105 $ 106 Deferred tax liabilities: ROU assets $ (38 ) $ — Accelerated depreciation (29 ) (38 ) Other intangible assets (17 ) (25 ) Revenue recognition (6 ) (4 ) Inventories (2 ) (7 ) Other (6 ) (5 ) Total deferred tax liabilities (98 ) (79 ) Net deferred tax assets $ 7 $ 27 |
Transactions Affecting Valuation Allowance On Deferred Tax Assets | Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Balance, beginning of year $ 11 $ 115 $ 87 Current year expense-net 66 — 9 Disposition of European printing business — (108 ) — Foreign exchange and other — 4 19 Balance, end of year $ 77 $ 11 $ 115 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss | The following table summarizes the change in accumulated other comprehensive loss by component for the years ended December 31, 2019, 2018 and 2017. Pension Translation Plan Cost Adjustments Total Balance at December 31, 2016 $ (462 ) $ (69 ) $ (531 ) Other comprehensive income before reclassifications 23 21 44 Amounts reclassified from accumulated other comprehensive loss 11 — 11 Net change in accumulated other comprehensive loss 34 21 55 Balance at December 31, 2017 $ (428 ) $ (48 ) $ (476 ) Other comprehensive loss before reclassifications (19 ) (7 ) (26 ) Amounts reclassified from accumulated other comprehensive loss 15 — 15 Reclassification to accumulated deficit (97 ) — (97 ) Net change in accumulated other comprehensive loss (101 ) (7 ) (108 ) Balance at December 31, 2018 $ (529 ) $ (55 ) $ (584 ) Other comprehensive income before reclassifications 46 2 48 Amounts reclassified from accumulated other comprehensive loss 8 — 8 Net change in accumulated other comprehensive loss 54 2 56 Balance at December 31, 2019 $ (475 ) $ (53 ) $ (528 ) |
Schedule of Reclassifications From Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Amortization of pension plan cost: Net actuarial loss (a) $ 11 $ 20 $ 18 Reclassifications before tax 11 20 18 Income tax expense 3 5 7 Reclassifications, net of tax $ 8 $ 15 $ 11 (a) These accumulated other comprehensive income components are included in the calculation of net periodic pension benefits plan (income) expense that is recognized all in investment and other (income)-net in the consolidated statements of operations (refer to Note 15, Retirement Plans |
Stock and Incentive Programs (T
Stock and Incentive Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation [Abstract] | |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activity for LSC Communications employees, officers and directors as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 897 $ 19.65 Granted 927 6.28 Vested (338 ) 25.59 Forfeited (182 ) 10.15 Nonvested at December 31, 2019 1,304 $ 9.93 |
Summary of Restricted Stock Award Activity for Employees | A summary of RSA activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 45 $ 26.26 Vested (42 ) 26.26 Forfeited (3 ) 26.26 Nonvested at December 31, 2019 — $ — |
Summary of Performance Restricted Shares Activity for Employees | A summary of PRS activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 133 $ 27.16 Vested (89 ) 26.26 Forfeited (11 ) 28.94 Nonvested at December 31, 2019 33 $ 28.94 |
Summary of Performance Share Units Activity for Employees | A summary of PSU activity for the Company’s employees as of December 31, 2018 and 2019, and changes during the year ended December 31, 2019, is presented below. Weighted Shares Average Grant (thousands) Date Fair Value Nonvested at December 31, 2018 258 $ 13.85 Forfeited (27 ) 13.68 Nonvested at December 31, 2019 231 $ 13.87 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 with the consolidated financial statements Income (Loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2019 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,559 $ (114 ) $ 645 $ 54 $ 35 Book 1,011 (36 ) 482 49 30 Office Products 517 42 275 12 2 Mexico 91 14 69 4 1 Total reportable segments 3,178 (94 ) 1,471 119 68 Other 149 7 29 1 — Corporate (1 ) (70 ) 149 — 3 Total operations $ 3,326 $ (157 ) $ 1,649 $ 120 $ 71 Income (loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2018 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,767 $ (31 ) $ 726 $ 62 $ 24 Book 1,055 58 572 52 31 Office Products 562 40 298 13 1 Mexico 97 13 73 4 1 Total reportable segments 3,481 80 1,669 131 57 Other 347 13 5 6 2 Corporate (2 ) (51 ) 80 1 4 Total operations $ 3,826 $ 42 $ 1,754 $ 138 $ 63 Income (loss) Depreciation Year Ended Net from Assets of and Capital December 31, 2017 Sales Operations Operations Amortization Expenditures Magazines, Catalogs and Logistics $ 1,583 $ (73 ) $ 780 $ 72 $ 24 Book 1,022 62 553 60 13 Office Products 495 42 377 15 5 Mexico 98 14 74 3 6 Total reportable segments 3,198 45 1,784 150 48 Other 405 14 148 8 4 Corporate — (78 ) 82 2 8 Total operations $ 3,603 $ (19 ) $ 2,014 $ 160 $ 60 |
Schedule of Corporate Assets | Corporate assets primarily consisted of the following items at December 31, 2019, 2018 and 2017: 2019 2018 2017 Cash and cash equivalents $ 80 $ 11 $ 12 Software 17 19 17 Long-term investments 16 14 13 Property, plant and equipment, net 15 14 14 Prepaid expenses and other current assets 15 12 10 Receivables, less allowances for doubtful accounts 14 17 19 Right-of-use assets for operating leases 10 — — Deferred income tax assets, net of valuation allowance 1 22 19 LIFO reserves (46 ) (52 ) (57 ) |
Geographic Areas (Tables)
Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Sales and Long-Lived Assets by Geographic Region | The table below presents net sales and long-lived assets by geographic region. North America (b) Europe Mexico Consolidated 2019 Net sales $ 3,176 $ 52 $ 98 $ 3,326 Long-lived assets (a) 487 — 30 517 2018 Net sales $ 3,495 $ 225 $ 106 $ 3,826 Long-lived assets (a) 571 — 30 601 2017 Net sales $ 3,226 $ 271 $ 106 $ 3,603 Long-lived assets (a) 607 32 36 675 (a) Includes net property, plant and equipment and other noncurrent assets. (b) North America includes the United States and Canada. |
Overview and Basis of Present_2
Overview and Basis of Presentation - Narrative (Detail) - USD ($) $ in Millions | Jul. 22, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Overview And Basis Of Presentation [Line Items] | ||||
Merger agreement termination fee | $ 45 | $ 45 | $ 0 | $ 0 |
Merger agreement transaction costs | $ 26 | $ 5 | ||
Waiver and Forbearance Agreement | ||||
Overview And Basis Of Presentation [Line Items] | ||||
Percentage of fee waiver | 0.30% |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Significant Accounting Policies [Line Items] | |||
Revenue recognized | $ 17,000,000 | $ 16,000,000 | |
Payment terms on invoiced amounts description | between 30 to 120 days | ||
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% |
Percentage of inventory valued at LIFO | 65.10% | 63.00% | |
Annual goodwill impairment testing date | --10-31 | ||
Initial lease term | 12 months | ||
Cumulative loss incurred period | 3 years | ||
Deferred tax assets, valuation allowance | $ 77,000,000 | $ 11,000,000 | |
Computer Software, Intangible Asset | |||
Significant Accounting Policies [Line Items] | |||
Amortization expense, primarily related to internally-developed software | $ 9,000,000 | $ 9,000,000 | $ 5,000,000 |
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Renewal period | 3 years | ||
Maximum | Computer Software, Intangible Asset | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of computer software | 3 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Renewal period | 1 year | ||
Buildings | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 40 years | ||
Buildings | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years | ||
Leasehold Improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 7 years | ||
Machinery and Equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years | ||
Machinery and Equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Customer-Supplied Paper | |||
Significant Accounting Policies [Line Items] | |||
Revenue recognized | $ 0 |
Business Combinations and Dis_3
Business Combinations and Disposition - Narrative (Detail) - USD ($) | Sep. 28, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 103,000,000 | $ 52,000,000 | $ 103,000,000 | $ 82,000,000 | ||
Proceeds from sale of business | 6,000,000 | 47,000,000 | 0 | |||
Acquisition-related expenses | 2,000,000 | 5,000,000 | ||||
Business acquisition nonrecurring pro forma adjustments affecting net (loss) income | 0 | 0 | ||||
Other | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 0 | 0 | 0 | $ 0 | ||
Other | Europe | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of business | $ 47,000,000 | |||||
Income tax non-cash provision recorded | 25,000,000 | 25,000,000 | 25,000,000 | |||
Print Logistics | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price of acquisition, cash | 52,000,000 | $ 58,000,000 | ||||
Net working capital settlement | $ 6,000,000 | $ 6,000,000 | ||||
Goodwill | 21,000,000 | |||||
2018 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Tax deductible goodwill | $ 25,000,000 |
Business Combinations and Dis_4
Business Combinations and Disposition - Schedule of Purchase Price Allocation for Acquisitions (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 52 | $ 103 | $ 82 |
Print Logistics | |||
Business Acquisition [Line Items] | |||
Accounts Receivable | 40 | ||
Prepaid expenses and other current assets | 1 | ||
Property, plant and equipment | 8 | ||
Other intangible assets | 17 | ||
Goodwill | 21 | ||
Accounts payable and accrued liabilities | (35) | ||
Purchase price and net cash paid | $ 52 |
Business Combinations and Dis_5
Business Combinations and Disposition - Fair Values, Valuation Techniques and Related Unobservable Inputs of Level Three (Detail) - Customer Relationships - Fair Value, Inputs, Level 3 - Fair Value, Measurements, Nonrecurring $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Existing Customer Growth Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | (3.5) |
Attrition Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | 7.5 |
Discount Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Input | 18 |
Multi-period excess earnings method | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair Value | $ 17 |
Business Combinations and Dis_6
Business Combinations and Disposition - Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Net sales | $ 3,326 | $ 3,911 |
Net (loss) | $ (295) | $ (26) |
Net (loss) per common share | ||
Basic | $ (8.82) | $ (0.77) |
Diluted | $ (8.82) | $ (0.77) |
Amortization of purchased intangibles | $ 18 | $ 19 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 3,326 | $ 3,826 | $ 3,603 | |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | [1] | 3,176 | 3,495 | 3,226 |
Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 52 | 225 | $ 271 | |
Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,011 | 1,055 | ||
Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,390 | 1,835 | ||
Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,390 | 1,671 | ||
Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 164 | ||
Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 341 | 270 | ||
Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 68 | 106 | ||
Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 68 | 92 | ||
Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 14 | ||
Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 516 | 560 | ||
Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,559 | 1,767 | ||
Magazines, Catalogs and Logistics | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,218 | 1,497 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,218 | 1,497 | ||
Magazines, Catalogs and Logistics | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 341 | 270 | ||
Magazines, Catalogs and Logistics | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Magazines, Catalogs and Logistics | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,011 | 1,055 | ||
Book | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,011 | 1,055 | ||
Book | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Book | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 517 | 562 | ||
Office Products | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Office Products | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 517 | 562 | ||
Mexico | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 91 | 97 | ||
Mexico | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 91 | 97 | ||
Mexico | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 91 | 97 | ||
Mexico | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Mexico | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 149 | 347 | ||
Other | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 81 | 241 | ||
Other | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 81 | 77 | ||
Other | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 164 | ||
Other | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Other | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 68 | 106 | ||
Other | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 68 | 92 | ||
Other | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 14 | ||
Other | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | (1) | (2) | ||
Corporate | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Magazines and Catalogs | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Magazines and Catalogs | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Magazines and Catalogs | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Directories | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Directories | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Directories | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Corporate | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | (1) | (2) | ||
Products and Services Transferred at a Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,652 | 3,227 | ||
Products and Services Transferred at a Point in Time | Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,106 | 1,371 | ||
Products and Services Transferred at a Point in Time | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 871 | 929 | ||
Products and Services Transferred at a Point in Time | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 517 | 562 | ||
Products and Services Transferred at a Point in Time | Mexico | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 91 | 97 | ||
Products and Services Transferred at a Point in Time | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 68 | 270 | ||
Products and Services Transferred at a Point in Time | Corporate | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | (1) | (2) | ||
Products and Services Transferred Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 674 | 599 | ||
Products and Services Transferred Over Time | Magazines, Catalogs and Logistics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 453 | 396 | ||
Products and Services Transferred Over Time | Book | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 140 | 126 | ||
Products and Services Transferred Over Time | Office Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Products and Services Transferred Over Time | Mexico | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Products and Services Transferred Over Time | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 81 | 77 | ||
Products and Services Transferred Over Time | Corporate | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | ||
[1] | North America includes the United States and Canada. |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Changes in the Contract Assets and Liabilities (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Contract Liabilities | |
Beginning Balance | $ 16 |
Revenue recognized that was included in contract liabilities as of January 1, 2019 | (12) |
Increases due to cash received | 13 |
Ending Balance | 17 |
Short-Term Contract Assets | |
Contract Assets | |
Beginning Balance | 44 |
Additions to unbilled accounts receivable | 38 |
Unbilled accounts receivable recognized in trade receivables | (42) |
Amortization of contract acquisition costs | 0 |
Write-off due to termination of contract acquisition costs | 0 |
Ending Balance | 40 |
Long-Term Contract Assets | |
Contract Assets | |
Beginning Balance | 30 |
Additions to unbilled accounts receivable | 0 |
Unbilled accounts receivable recognized in trade receivables | 0 |
Payment of contract acquisition costs | 3 |
Amortization of contract acquisition costs | (12) |
Write-off due to termination of contract acquisition costs | (7) |
Ending Balance | $ 14 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Trade receivables | $ 366,000,000 | $ 488,000,000 |
ASU 2014-09 | ||
Disaggregation Of Revenue [Line Items] | ||
Amortization expense | 12,000,000 | 11,000,000 |
Impairment loss amount | $ 7,000,000 | $ 0 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Operating lease, right-of-use asset | $ 163,000,000 | $ 201,000,000 | $ 0 |
Operating lease, liability | $ 171,000,000 | ||
Initial lease term | 12 months | ||
Operating lease, impairment of right of use asset | $ 4,000,000 | ||
Operating cash outflows from operating leases | 61,000,000 | ||
Finance lease ROU assets or obligations acquired | 0 | ||
Additional operating leases not commenced, amount | 0 | ||
Magazines, Catalogs and Logistics | |||
Lessee Lease Description [Line Items] | |||
Operating lease, impairment of right of use asset | 3,000,000 | ||
Office Products | |||
Lessee Lease Description [Line Items] | |||
Operating lease, impairment of right of use asset | $ 1,000,000 | ||
Minimum | |||
Lessee Lease Description [Line Items] | |||
Renewal period | 1 year | ||
Sublease renewal period | 1 year | ||
Sublease termination notice period | 90 days | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Renewal period | 3 years | ||
Sublease renewal period | 5 years | ||
Sublease termination notice period | 180 days | ||
ASU 2016-02 | |||
Lessee Lease Description [Line Items] | |||
Operating lease, right-of-use asset | 206,000,000 | ||
Operating lease, liability | $ 206,000,000 |
Leases - Impact of Adopting Acc
Leases - Impact of Adopting Accounting Standards Update Adjustment to Accounts (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
ROU assets for operating leases | $ 163 | $ 201 | $ 0 |
Liabilities | |||
Accrued liabilities | 211 | 198 | 199 |
Short-term operating lease liabilities | 42 | 52 | 0 |
Long-term operating lease liabilities | 129 | 154 | 0 |
Other noncurrent liabilities | $ 56 | 57 | 61 |
As Reported | |||
Assets | |||
ROU assets for operating leases | 0 | ||
Liabilities | |||
Accrued liabilities | 199 | ||
Short-term operating lease liabilities | 0 | ||
Long-term operating lease liabilities | 0 | ||
Other noncurrent liabilities | $ 61 | ||
ASU 2016-02 | |||
Assets | |||
ROU assets for operating leases | 206 | ||
ASU 2016-02 | Adjustments | |||
Assets | |||
ROU assets for operating leases | 201 | ||
Liabilities | |||
Accrued liabilities | (1) | ||
Short-term operating lease liabilities | 52 | ||
Long-term operating lease liabilities | 154 | ||
Other noncurrent liabilities | $ (4) |
Leases - Impact of Adopting A_2
Leases - Impact of Adopting Accounting Standards Update Adjustment to Accounts (Parenthetical) (Detail) $ in Millions | Jan. 01, 2019USD ($) |
Accrued Liabilities and Other Noncurrent Liabilities | |
Lessee Lease Description [Line Items] | |
Straight line rent accruals adjustments | $ 5 |
Leases - Components of Total Ne
Leases - Components of Total Net Lease Expense (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 71 |
Sublease (income) | (8) |
Variable lease expense | 11 |
Total net lease expense | $ 74 |
Leases - Supplemental Non-cash
Leases - Supplemental Non-cash Information Related to Leases (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
ROU assets acquired in exchange for lease obligations: | |
ROU assets, Operating leases | $ 18 |
Lease obligations, Operating leases | $ 18 |
Leases - Supplemental Informati
Leases - Supplemental Information Regarding Weighted Average Lease Term and Discount Rate (Detail) | Dec. 31, 2019 |
Weighted Average Remaining Lease Term (years) | |
Operating leases | 5 years |
Financing leases | 2 years 1 month 6 days |
Weighted Average Discount Rate | |
Operating leases | 8.60% |
Financing leases | 6.90% |
Leases - Schedule of Annual Mat
Leases - Schedule of Annual Maturities of Lease Liabilities (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 53 |
2021 | 45 |
2022 | 35 |
2023 | 24 |
2024 | 19 |
2025 & thereafter | 28 |
Total undiscounted lease payments | 204 |
Imputed interest | (33) |
Total lease liabilities | $ 171 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Balance, beginning of year | $ 14 | $ 11 | $ 10 |
Provisions charged to expense | 7 | 7 | 3 |
Write-offs and other | (9) | (4) | (2) |
Balance, end of period | $ 12 | $ 14 | $ 11 |
Inventories - Components of the
Inventories - Components of the Company's Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 91 | $ 119 |
Work in process | 38 | 50 |
Finished goods | 87 | 80 |
Last in, first out reserve | (46) | (52) |
Total | $ 170 | $ 197 |
Inventories - Narrative (Detail
Inventories - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Net [Abstract] | |||
LIFO benefit | $ 6 | $ 5 | $ 1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Company's Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 35 | $ 43 |
Buildings | 663 | 709 |
Machinery and equipment | 3,006 | 3,759 |
Property, plant and equipment, gross | 3,704 | 4,511 |
Less: Accumulated depreciation | (3,264) | (4,003) |
Total | $ 440 | $ 508 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 94 | $ 112 | $ 137 |
Other current assets | |||
Property Plant And Equipment [Line Items] | |||
Net book value of assets held for sale | 9 | $ 3 | |
Land and Building | Magazines, Catalogs and Logistics | |||
Property Plant And Equipment [Line Items] | |||
Net book value of assets held for sale | 7 | ||
Net book value of assets sold | $ 8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Detail) - USD ($) | Aug. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2019 |
Goodwill [Line Items] | ||||||
Goodwill gross | $ 992,000,000 | $ 992,000,000 | $ 1,044,000,000 | |||
Accumulated impairment losses | (940,000,000) | (889,000,000) | (962,000,000) | |||
Goodwill | 52,000,000 | 103,000,000 | 82,000,000 | |||
Acquisition | 21,000,000 | |||||
Impairment charges | $ 0 | $ 55,000,000 | 51,000,000 | |||
Magazines, Catalogs and Logistics | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross | 523,000,000 | 523,000,000 | 502,000,000 | |||
Accumulated impairment losses | (502,000,000) | (502,000,000) | (502,000,000) | |||
Goodwill | 21,000,000 | 21,000,000 | 0 | |||
Acquisition | 21,000,000 | |||||
Impairment charges | 0 | |||||
Book | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross | 354,000,000 | 354,000,000 | 354,000,000 | |||
Accumulated impairment losses | (354,000,000) | (303,000,000) | (303,000,000) | |||
Goodwill | 0 | 51,000,000 | 51,000,000 | $ 51,000,000 | ||
Acquisition | 0 | |||||
Impairment charges | 51,000,000 | 0 | ||||
Office Products | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross | 110,000,000 | 110,000,000 | 110,000,000 | |||
Accumulated impairment losses | (79,000,000) | (79,000,000) | (79,000,000) | |||
Goodwill | 31,000,000 | 31,000,000 | 31,000,000 | $ 31,000,000 | ||
Acquisition | 0 | |||||
Impairment charges | 0 | |||||
Mexico | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross | 0 | 0 | 0 | |||
Accumulated impairment losses | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Acquisition | 0 | |||||
Impairment charges | 0 | |||||
Other | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross | 5,000,000 | 5,000,000 | 78,000,000 | |||
Accumulated impairment losses | (5,000,000) | (5,000,000) | (78,000,000) | |||
Goodwill | 0 | $ 0 | 0 | |||
Acquisition | $ 0 | |||||
Impairment charges | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) | Aug. 31, 2019 | Jan. 01, 2019 | Sep. 30, 2017 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 28, 2018 |
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Goodwill impairment charges | $ 0 | $ 55,000,000 | $ 51,000,000 | |||||
Goodwill gross | 992,000,000 | $ 992,000,000 | $ 1,044,000,000 | |||||
Accumulated impairment losses | 940,000,000 | 889,000,000 | 962,000,000 | |||||
Impairment of definite-lived intangible assets | 18,000,000 | |||||||
Definite-lived tradenames, net book value | 120,000,000 | 134,000,000 | ||||||
Amortization expense for other intangible assets | 18,000,000 | 18,000,000 | 18,000,000 | |||||
Customer Relationships | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Impairment of definite-lived intangible assets | 17,000,000 | |||||||
Definite-lived tradenames, net book value | 99,000,000 | 131,000,000 | ||||||
Trade Names | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Impairment of definite-lived intangible assets | 1,000,000 | |||||||
Definite-lived tradenames, net book value | $ 21,000,000 | 21,000,000 | 3,000,000 | |||||
Definite-lived tradenames, useful life | 15 years | |||||||
Europe | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Goodwill gross | $ 73,000,000 | |||||||
Accumulated impairment losses | $ 0 | |||||||
Book | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Goodwill impairment charges | 51,000,000 | 0 | ||||||
Goodwill gross | 354,000,000 | 354,000,000 | 354,000,000 | |||||
Accumulated impairment losses | 354,000,000 | 303,000,000 | 303,000,000 | |||||
Magazines, Catalogs and Logistics | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Goodwill impairment charges | 0 | |||||||
Goodwill gross | 523,000,000 | 523,000,000 | 502,000,000 | |||||
Accumulated impairment losses | 502,000,000 | $ 502,000,000 | $ 502,000,000 | |||||
Magazines, Catalogs and Logistics | Customer Relationships | ||||||||
Schedule Of Other Intangible Assets [Line Items] | ||||||||
Impairment of definite-lived intangible assets | $ 17,000,000 | $ 38,000,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Schedule Of Other Intangible Assets [Line Items] | |||
Gross Carrying Amount, amortizable intangible assets | $ 277 | $ 277 | |
Accumulated Amortization, amortizable intangible assets | (157) | (143) | |
Net Book Value, amortizable intangible assets | 120 | 134 | |
Gross Carrying Amount, total other intangible assets | 277 | 299 | |
Net Book Value, total other intangible assets | 120 | 156 | |
Trade Names | |||
Schedule Of Other Intangible Assets [Line Items] | |||
Gross Carrying Amount, indefinite-lived trade names | 0 | 22 | |
Accumulated Amortization, indefinite-lived trade names | 0 | 0 | |
Net Book Value, indefinite-lived trade names | 0 | 22 | |
Customer Relationships | |||
Schedule Of Other Intangible Assets [Line Items] | |||
Gross Carrying Amount, amortizable intangible assets | 248 | 268 | |
Accumulated Amortization, amortizable intangible assets | (149) | (137) | |
Net Book Value, amortizable intangible assets | 99 | 131 | |
Trade Names | |||
Schedule Of Other Intangible Assets [Line Items] | |||
Gross Carrying Amount, amortizable intangible assets | 29 | 9 | |
Accumulated Amortization, amortizable intangible assets | (8) | (6) | |
Net Book Value, amortizable intangible assets | $ 21 | $ 21 | $ 3 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 17 |
2021 | 15 |
2022 | 14 |
2023 | 13 |
2024 | 13 |
2025 and thereafter | 48 |
Total | $ 120 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges - Schedule of Net Restructuring, Impairment and Other Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | $ 30 | $ 14 | $ 13 |
Other Restructuring Charges | 37 | 14 | 24 |
Total Restructuring Charges | 67 | 28 | 37 |
Impairment | 79 | 5 | 88 |
Other Charges | 2 | 2 | 4 |
Total | 148 | 35 | 129 |
Total Operating Segments | Magazines, Catalogs and Logistics | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 24 | 10 | 6 |
Other Restructuring Charges | 18 | 8 | 4 |
Total Restructuring Charges | 42 | 18 | 10 |
Impairment | 25 | 2 | 75 |
Other Charges | 0 | 0 | 1 |
Total | 67 | 20 | 86 |
Total Operating Segments | Book | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 5 | 0 | 5 |
Other Restructuring Charges | 5 | 4 | 2 |
Total Restructuring Charges | 10 | 4 | 7 |
Impairment | 54 | 0 | 5 |
Other Charges | 2 | 2 | 3 |
Total | 66 | 6 | 15 |
Total Operating Segments | Office Products | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 1 | 1 | 1 |
Other Restructuring Charges | 3 | 2 | 0 |
Total Restructuring Charges | 4 | 3 | 1 |
Impairment | 0 | 3 | 3 |
Other Charges | 0 | 0 | 0 |
Total | 4 | 6 | 4 |
Total Operating Segments | Mexico | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 0 | 0 | 1 |
Other Restructuring Charges | 0 | 0 | 0 |
Total Restructuring Charges | 0 | 0 | 1 |
Impairment | 0 | 0 | 0 |
Other Charges | 0 | 0 | 0 |
Total | 0 | 0 | 1 |
Total Operating Segments | Other | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 0 | 1 | 0 |
Other Restructuring Charges | 0 | 0 | 1 |
Total Restructuring Charges | 0 | 1 | 1 |
Impairment | 0 | 0 | 5 |
Other Charges | 0 | 0 | 0 |
Total | 0 | 1 | 6 |
Corporate | |||
Restructuring Cost And Reserve [Line Items] | |||
Employee Terminations | 0 | 2 | 0 |
Other Restructuring Charges | 11 | 0 | 17 |
Total Restructuring Charges | 11 | 2 | 17 |
Impairment | 0 | 0 | 0 |
Other Charges | 0 | 0 | 0 |
Total | $ 11 | $ 2 | $ 17 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Charges - Narrative (Detail) | Oct. 31, 2019USD ($)Segment | Aug. 31, 2019USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)Employee | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)EmployeeFacilitySegment | Dec. 31, 2018USD ($)EmployeeFacility | Dec. 31, 2017USD ($)EmployeeFacilityBusiness |
Restructuring Cost And Reserve [Line Items] | ||||||||
Employee-related termination costs | $ 30,000,000 | $ 14,000,000 | $ 13,000,000 | |||||
Number of employees used to determine employee termination costs | Employee | 2,150 | 811 | 776 | |||||
Other restructuring charges | $ 37,000,000 | $ 14,000,000 | $ 24,000,000 | |||||
Goodwill | $ 52,000,000 | 52,000,000 | 103,000,000 | 82,000,000 | ||||
Number of reporting units | Segment | 3 | |||||||
Goodwill impairment charges | $ 0 | $ 55,000,000 | 51,000,000 | |||||
Impairment of definite-lived intangible assets | 18,000,000 | |||||||
Impairment charges | 79,000,000 | 6,000,000 | 88,000,000 | |||||
Impairment charges related to machinery and equipment | 10,000,000 | 3,000,000 | 7,000,000 | |||||
Impairment charge of property, plant and equipment | 10,000,000 | 3,000,000 | 7,000,000 | |||||
Impairment of indefinite-lived intangible assets | 1,000,000 | |||||||
Reduction of goodwill impairment charges | 1,000,000 | |||||||
Adjustment of previously recorded goodwill | 1,000,000 | |||||||
Magazines, catalogs and retail inserts | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Goodwill | $ 0 | 0 | ||||||
Goodwill impairment charges | 73,000,000 | |||||||
Magazines, catalogs and retail inserts | Clark Group | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Goodwill impairment charges | 18,000,000 | |||||||
Trade Names | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of indefinite-lived intangible assets | $ 8,000,000 | |||||||
Indefinite-lived intangible assets | 0 | 0 | $ 22,000,000 | |||||
Customer Relationships | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of definite-lived intangible assets | $ 17,000,000 | |||||||
Magazines, Catalogs and Logistics | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number of facilities closed | Facility | 5 | 2 | 1 | |||||
Goodwill | 21,000,000 | $ 21,000,000 | $ 21,000,000 | $ 0 | ||||
Number of reporting units | Segment | 2 | |||||||
Goodwill impairment charges | $ 0 | |||||||
Impairment charges | 0 | |||||||
Impairment charges related to machinery and equipment | 10,000,000 | |||||||
Magazines, Catalogs and Logistics | Customer Relationships | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of definite-lived intangible assets | $ 17,000,000 | $ 38,000,000 | ||||||
Book | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number of facilities closed | Facility | 1 | 3 | ||||||
Estimated fair value exceeds carrying value percentage | 28.20% | |||||||
Goodwill | $ 51,000,000 | 0 | $ 0 | 51,000,000 | $ 51,000,000 | |||
Goodwill impairment charges | 51,000,000 | $ 0 | ||||||
Impairment charges | 0 | |||||||
Book | Trade Names | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of indefinite-lived intangible assets | 5,000,000 | |||||||
Indefinite-lived intangible assets | 1,000,000 | |||||||
Logistics | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Estimated fair value exceeds carrying value percentage | 55.90% | |||||||
Goodwill | 21,000,000 | |||||||
Office Products | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number of facilities closed | Facility | 1 | |||||||
Estimated fair value exceeds carrying value percentage | 16.80% | |||||||
Goodwill | $ 31,000,000 | $ 31,000,000 | 31,000,000 | $ 31,000,000 | 31,000,000 | |||
Goodwill impairment charges | 0 | |||||||
Office Products | Trade Names | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of indefinite-lived intangible assets | 3,000,000 | 3,000,000 | ||||||
Indefinite-lived intangible assets | $ 21,000,000 | $ 23,000,000 | ||||||
Magazines and Catalogs | Customer Relationships | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Impairment of definite-lived intangible assets | $ 17,000,000 | |||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number of business acquisitions completed | Business | 5 | |||||||
Cost of Goods Sold | Magazines, Catalogs and Logistics | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Gain on sale of land and building associated with plant closure | $ 26,000,000 | |||||||
Termination One | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number of employees who were terminated as of date | Employee | 357 | 357 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other Charges - Schedule of Net Impairment Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | $ 10 | $ 3 | $ 7 |
Other Intangible Assets | 18 | 3 | 8 |
Goodwill | 51 | (1) | 73 |
Total | 79 | 5 | 88 |
Magazines, Catalogs and Logistics | |||
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | 10 | ||
Magazines, Catalogs and Logistics | Total Operating Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | 8 | 3 | 7 |
Other Intangible Assets | 17 | 0 | 0 |
Goodwill | 0 | (1) | 68 |
Total | 25 | 2 | 75 |
Book | Total Operating Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | 2 | 0 | |
Other Intangible Assets | 1 | 5 | |
Goodwill | 51 | 0 | |
Total | 54 | 0 | 5 |
Office Products | Total Operating Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | 0 | 0 | |
Other Intangible Assets | 3 | 3 | |
Goodwill | 0 | 0 | |
Total | 0 | 3 | 3 |
Other | Total Operating Segments | |||
Restructuring Cost And Reserve [Line Items] | |||
Property, Plant and Equipment | 0 | ||
Other Intangible Assets | 0 | ||
Goodwill | 5 | ||
Total | $ 0 | $ 0 | $ 5 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other Charges - Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) | Aug. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Long-lived assets held and used, impairment charge | $ 10,000,000 | $ 3,000,000 | $ 7,000,000 | ||
Goodwill, impairment charge | $ 0 | $ 55,000,000 | 51,000,000 | ||
Impairment of definite-lived intangible assets | 18,000,000 | ||||
Indefinite-lived trade names, impairment charge | 1,000,000 | ||||
Total, impairment charge | 79,000,000 | 6,000,000 | 88,000,000 | ||
Goodwill, net book value | 52,000,000 | 103,000,000 | 82,000,000 | ||
Customer relationships, net book value | 120,000,000 | 134,000,000 | |||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Long-lived assets held and used, impairment charge | 3,000,000 | 7,000,000 | |||
Goodwill, impairment charge | 73,000,000 | ||||
Indefinite-lived trade names, impairment charge | 3,000,000 | 8,000,000 | |||
Total, impairment charge | 6,000,000 | 88,000,000 | |||
Long-lived assets held and used, net book value | 0 | 0 | 0 | ||
Goodwill, net book value | 0 | 0 | |||
Indefinite-lived trade names, net book value | 0 | 21,000,000 | 23,000,000 | ||
Total, net book value | 0 | 21,000,000 | 23,000,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Long-lived assets held and used, fair value measurement | 0 | 0 | 0 | ||
Goodwill, fair value measurement | 0 | 0 | |||
Indefinite-lived trade names, fair value measurement | 0 | 21,000,000 | 23,000,000 | ||
Total, fair value measurement | 0 | 21,000,000 | $ 23,000,000 | ||
Customer Relationships | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impairment of definite-lived intangible assets | 17,000,000 | ||||
Customer relationships, net book value | 99,000,000 | $ 131,000,000 | |||
Customer Relationships | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Customer relationships, net book value | 0 | ||||
Customer Relationships | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Customer relationships, fair value measurement | $ 0 |
Restructuring, Impairment and_7
Restructuring, Impairment and Other Charges - Other Charges - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Other charges | $ 2 | $ 2 | $ 4 | |
Accrued liabilities | 211 | 199 | $ 198 | |
Other noncurrent liabilities | 56 | 61 | $ 57 | |
Multiemployer pension plan withdrawal obligations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Other charges | 2 | 2 | 4 | |
Accrued liabilities | 4 | 3 | 6 | |
Other noncurrent liabilities | $ 17 | $ 19 | $ 37 |
Restructuring, Impairment and_8
Restructuring, Impairment and Other Charges - Summary of Fair Value, Valuation Techniques and Related Unobservable Inputs for Level 3 Measurements (Detail) - Fair Value, Measurements, Nonrecurring - Fair Value, Inputs, Level 3 $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Fair Value | $ 0 | $ 21 | $ 23 |
Trade Names | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Fair Value | $ 22 | $ 24 | |
Alternative Investment, Valuation Technique [Extensible List] | lksd:ReliefFromRoyaltyMember | lksd:ReliefFromRoyaltyMember | |
Alternative Investment, Measurement Input [Extensible List] | lksd:RoyaltyRateMember | lksd:RoyaltyRateMember | |
Trade Names | Measurement Input Discount Rate | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Range | 0.5 | 0.5 | |
Trade Names | Measurement Input Discount Rate | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Range | 1.5 | 1.5 |
Restructuring, Impairment and_9
Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | $ 41 | $ 26 |
Restructuring Charges | 62 | 25 |
Other | 0 | 19 |
Cash Paid | (41) | (29) |
Balance at the end | 62 | 41 |
Employee terminations | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 8 | 8 |
Restructuring Charges | 30 | 14 |
Other | 0 | 0 |
Cash Paid | (9) | (14) |
Balance at the end | 29 | 8 |
Other and Lease Termination | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 1 | |
Restructuring Charges | 27 | |
Other | 0 | |
Cash Paid | (26) | |
Balance at the end | 2 | 1 |
Other | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 1 | 2 |
Restructuring Charges | 8 | |
Other | 0 | |
Cash Paid | (9) | |
Balance at the end | 1 | |
Multiemployer pension plan withdrawal obligations | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at the beginning | 32 | 16 |
Restructuring Charges | 5 | 3 |
Other | 0 | 19 |
Cash Paid | (6) | (6) |
Balance at the end | $ 31 | $ 32 |
Restructuring, Impairment an_10
Restructuring, Impairment and Other Charges - Restructuring Reserve - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost And Reserve [Line Items] | ||||
Current restructuring reserve | $ 37 | $ 15 | $ 3 | |
Noncurrent restructuring reserve | 25 | 26 | 16 | |
Restructuring reserve | 62 | 41 | $ 26 | |
Multiemployer pension plan withdrawal obligations | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve | $ 31 | $ 32 | $ 19 | $ 16 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accrued Liabilities Current [Abstract] | ||||
Employee-related liabilities | $ 69 | $ 71 | ||
Customer-related liabilities | 35 | 38 | ||
Deferred revenue | 18 | 15 | ||
Restructuring liabilities | 37 | 15 | $ 3 | |
Other | 52 | 60 | ||
Total accrued liabilities | $ 211 | $ 198 | $ 199 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)Facility | |
Commitments And Contingencies Disclosure [Abstract] | |
Severance payments related to restructuring | $ 29 |
Committed total of property, plant and equipment expenditure | 9 |
Commitments for outsourced services | $ 35 |
Number of sites cited as potentially responsible party | Facility | 10 |
Number of previously and currently owned sites with potential remediation obligations | Facility | 3 |
Debt - Schedule of the Company'
Debt - Schedule of the Company's Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Finance lease and other obligations | $ 2 | $ 4 | ||
Unamortized debt issuance costs | (9) | (11) | ||
Total debt | 910 | 767 | ||
Less: current portion | (465) | (108) | ||
Long-term debt | 445 | 659 | ||
Borrowings under the Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term Loan Facility | 249 | 64 | ||
Term Loan Facility due September 30, 2022 | ||||
Debt Instrument [Line Items] | ||||
Term Loan Facility | [1] | 218 | 260 | |
Unamortized debt issuance costs | (4) | |||
8.75% Senior Secured Notes due October 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior Secured Notes | 450 | $ 450 | $ 450 | |
Unamortized debt issuance costs | $ (5) | |||
[1] | The weighted-average interest rate on borrowings under the Company’s Revolving Credit Facility was 5.47% and 5.19% during the year ended December 31, 2019 and 2018, respectively |
Debt - Schedule of the Compan_2
Debt - Schedule of the Company's Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Weighted-average interest rate on borrowings | 5.47% | 5.19% |
Term Loan Facility due September 30, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Sep. 30, 2022 | |
Debt instrument, variable interest rate | 7.12% | 8.02% |
8.75% Senior Secured Notes due October 15, 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 8.75% | |
Debt instrument, maturity date | Oct. 15, 2023 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 05, 2019 | Sep. 30, 2016 | ||
Debt Instrument [Line Items] | ||||||
Total amount of revolving credit agreement | $ 0 | |||||
Amount of difference between fair value and book value | 277,000,000 | $ 22,000,000 | ||||
Interest paid, net of interest received | $ 73,000,000 | 76,000,000 | $ 69,000,000 | |||
Waiver and Forbearance Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of fee waiver | 0.30% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowings | $ 249,000,000 | 64,000,000 | ||||
Credit Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit | 51,000,000 | |||||
Credit Agreements | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | 400,000,000 | $ 400,000,000 | ||||
Allowable annual dividend payment under credit agreement | 50,000,000 | |||||
Amended Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 300,000,000 | |||||
Senior Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured notes | 450,000,000 | 450,000,000 | 450,000,000 | |||
Term Loan Facility due September 30, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowings | [1] | $ 218,000,000 | $ 260,000,000 | |||
Term Loan Facility due September 30, 2022 | Credit Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 375,000,000 | |||||
[1] | The weighted-average interest rate on borrowings under the Company’s Revolving Credit Facility was 5.47% and 5.19% during the year ended December 31, 2019 and 2018, respectively |
Debt - Summary of Changes to In
Debt - Summary of Changes to Interest Coverage Ratio and Maximum Consolidated Leverage Ratio (Detail) - Amended Credit Agreement | Aug. 05, 2019 | Dec. 20, 2018 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Step-down as of date (quarter ending on or after) | Mar. 31, 2020 | Mar. 31, 2019 | |
Step-up as of date (quarter ending on or after) | Mar. 31, 2020 | Mar. 31, 2019 | |
Covenant One | |||
Debt Instrument [Line Items] | |||
Step-down as of date (quarter ending on or after) | Jun. 30, 2020 | ||
Step-up as of date (quarter ending on or after) | Sep. 30, 2020 | ||
Covenant Two | |||
Debt Instrument [Line Items] | |||
Step-down as of date (quarter ending on or after) | Mar. 31, 2021 | ||
Step-up as of date (quarter ending on or after) | Jun. 30, 2021 | ||
Current Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 3.75 | 3.25 | 3.25 |
Minimum Interest Coverage Ratio | 2.50 | 3.25 | 3.25 |
Current Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 1 | 1 | 1 |
Minimum Interest Coverage Ratio | 1 | 1 | 1 |
Step-Down Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 3 | 3 | |
Step-Down Ratio | Minimum | Covenant One | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 3.50 | ||
Step-Down Ratio | Minimum | Covenant Two | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 3.25 | ||
Step-Down Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 1 | 1 | |
Step-Down Ratio | Maximum | Covenant One | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 1 | ||
Step-Down Ratio | Maximum | Covenant Two | |||
Debt Instrument [Line Items] | |||
Maximum Consolidated Leverage Ratio | 1 | ||
Step-Up Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 3.50 | 3.50 | |
Step-Up Ratio | Minimum | Covenant One | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 2.75 | ||
Step-Up Ratio | Minimum | Covenant Two | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 3 | ||
Step-Up Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 1 | 1 | |
Step-Up Ratio | Maximum | Covenant One | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 1 | ||
Step-Up Ratio | Maximum | Covenant Two | |||
Debt Instrument [Line Items] | |||
Minimum Interest Coverage Ratio | 1 |
Debt - Future Maturities of Deb
Debt - Future Maturities of Debt (Detail) $ in Millions | Dec. 31, 2019USD ($) | |
Long Term Debt Maturities | ||
2020 | $ 472 | |
2021 | 0 | |
2022 | 0 | |
2023 | 450 | |
2024 | 0 | |
2025 and thereafter | 0 | |
Total | $ 922 | [1] |
[1] | Excludes unamortized debt issuance costs of $4 million and $5 million related to the Company’s Term Loan Facility and 8.75% Senior Notes due October 15, 2023, respectively, and a discount of $3 million related to the Company’s Term Loan Facility. These amounts do not represent contractual obligations with a fixed amount or maturity date. |
Debt - Future Maturities of D_2
Debt - Future Maturities of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 9 | $ 11 |
Term Loan Facility due September 30, 2022 | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 4 | |
Discount on senior notes | $ 3 | |
Maturity date | Sep. 30, 2022 | |
8.75% Senior Secured Notes due October 15, 2023 | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 5 | |
Interest rate | 8.75% | |
Maturity date | Oct. 15, 2023 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instruments [Abstract] | |||
Interest incurred | $ 77 | $ 82 | $ 73 |
Less: interest income | (1) | (2) | (1) |
Interest expense-net | $ 76 | $ 80 | $ 72 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Detail) - USD ($) $ in Millions | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Earnings Per Share [Line Items] | |||
Repurchase of common stock, shares | 1.6 | ||
Total repurchase cost | $ 20 | $ 20 | |
Fairrington | |||
Earnings Per Share [Line Items] | |||
Issuance of common stock shares for acquisitions of businesses | 1 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted EPS as Well as Reconciliation of Basic Shares to Diluted Shares (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net (loss) per common share: | |||
Basic | $ (8.82) | $ (0.67) | $ (1.69) |
Diluted | $ (8.82) | $ (0.67) | $ (1.69) |
Numerator: | |||
Net (loss) | $ (295) | $ (23) | $ (57) |
Denominator: | |||
Weighted average number of common shares outstanding | 33.4 | 33.8 | 33.8 |
Dilutive options and awards | 0 | 0 | 0 |
Diluted weighted average number of common shares outstanding | 33.4 | 33.8 | 33.8 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)Pension_Plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020EmployeePension_Plan | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Reduction in pension obligation under the annuity contract | $ 477,000,000 | ||||
Reduction in net benefit plan asset | 466,000,000 | ||||
Pension non-cash settlement expense | $ 135,000,000 | ||||
Threshold for recognition in net periodic benefit costs, percentage of projected benefit obligation or fair value of plan assets | 10.00% | ||||
Defined contribution plan employer matching contribution pre tax amount per employee | $ 0.50 | ||||
Defined contribution plan, maximum percentage of participation pay | 3.00% | ||||
Number of multiemployer pension plans | Pension_Plan | 2 | ||||
Multiemployer pension withdrawal liabilities | $ 2,000,000 | ||||
Multiemployer pension withdrawal liabilities | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||
Scenario Forecast | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of multiemployer pension plans | Employee | 2 | ||||
Courier Corporation | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plan company's contributions percentage | 85.00% | ||||
Number of multiemployer pension plans | Pension_Plan | 2 | ||||
Return Seeking Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentage for qualified plan | 40.00% | ||||
Hedging Investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentage for qualified plan | 60.00% | ||||
U.S. Qualified Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plans, accumulated benefit obligation | $ 2,159,000,000 | 2,318,000,000 | |||
Non-Qualified and International Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plans, accumulated benefit obligation | 95,000,000 | $ 86,000,000 | |||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension plan contributions for current year | 6,000,000 | ||||
Pension Plan | U.S. Qualified Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension non-cash settlement expense | 2,000,000 | ||||
Pension plan expected required contributions in 2020 | 0 | ||||
Pension Plan | Non-Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension plan expected required contributions in 2020 | $ 6,000,000 |
Retirement Plans - Summary of F
Retirement Plans - Summary of Financial Information Regarding Qualified, Non-Qualified and Internationals Plans (Detail) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 77 | $ 87 | $ 89 |
Expected return on plan assets | (123) | (155) | (153) |
Amortization of actuarial loss | 11 | 20 | 18 |
Settlements | 137 | 0 | 0 |
Net periodic benefit (income) expense | $ 102 | $ (48) | $ (46) |
Weighted average assumption used to calculate net periodic benefit (income) expense: | |||
Discount rate | 4.30% | 3.50% | 4.30% |
Expected return on plan assets | 6.50% | 6.70% | 6.90% |
Qualified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 73 | $ 84 | $ 86 |
Expected return on plan assets | (123) | (155) | (153) |
Amortization of actuarial loss | 10 | 19 | 17 |
Settlements | 137 | 0 | 0 |
Net periodic benefit (income) expense | $ 97 | $ (52) | $ (50) |
Weighted average assumption used to calculate net periodic benefit (income) expense: | |||
Discount rate | 4.30% | 3.50% | 4.30% |
Expected return on plan assets | 6.50% | 6.70% | 6.90% |
Non-Qualified & International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 4 | $ 3 | $ 3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 1 | 1 | 1 |
Settlements | 0 | 0 | 0 |
Net periodic benefit (income) expense | $ 5 | $ 4 | $ 4 |
Weighted average assumption used to calculate net periodic benefit (income) expense: | |||
Discount rate | 4.60% | 3.80% | 4.30% |
Expected return on plan assets | 7.80% | 7.80% | 7.90% |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Benefit Obligation, Plan Assets and Unfunded Status of Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Settlements | $ 137 | $ 0 | $ 0 |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,406 | 2,667 | |
Interest cost | 77 | 87 | 89 |
Actuarial loss (gain) | 336 | (217) | |
Settlements | (475) | 0 | |
Benefits paid | (88) | (131) | |
Benefit obligation at end of year | 2,256 | 2,406 | 2,667 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,269 | 2,480 | |
Actual return on assets | 382 | (86) | |
Employer contributions | 6 | 6 | |
Settlements | (475) | 0 | |
Benefits paid | (88) | (131) | |
Fair value of plan assets at end of year | 2,094 | 2,269 | 2,480 |
Unfunded status at end of year | (162) | (137) | |
Pension Benefits | Qualified | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,318 | 2,572 | |
Interest cost | 73 | 84 | 86 |
Actuarial loss (gain) | 325 | (211) | |
Settlements | (474) | 0 | |
Benefits paid | (83) | (127) | |
Benefit obligation at end of year | 2,159 | 2,318 | 2,572 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,265 | 2,478 | |
Actual return on assets | 382 | (86) | |
Employer contributions | 0 | 0 | |
Settlements | (474) | 0 | |
Benefits paid | (83) | (127) | |
Fair value of plan assets at end of year | 2,090 | 2,265 | 2,478 |
Unfunded status at end of year | (69) | (53) | |
Pension Benefits | Non-Qualified & International | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 88 | 95 | |
Interest cost | 4 | 3 | 3 |
Actuarial loss (gain) | 11 | (6) | |
Settlements | (1) | 0 | |
Benefits paid | (5) | (4) | |
Benefit obligation at end of year | 97 | 88 | 95 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4 | 2 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 6 | 6 | |
Settlements | (1) | 0 | |
Benefits paid | (5) | (4) | |
Fair value of plan assets at end of year | 4 | 4 | $ 2 |
Unfunded status at end of year | $ (93) | $ (84) |
Retirement Plans - Amounts Reco
Retirement Plans - Amounts Recognized on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit cost (included in accrued liabilities) | $ (211) | $ (198) | $ (199) |
Pension liabilities | (156) | (132) | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit cost (included in accrued liabilities) | (6) | (5) | |
Pension liabilities | (156) | (132) | |
Net liabilities recognized in the consolidated balance sheets | (162) | (137) | |
Pension Benefits | Qualified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit cost (included in accrued liabilities) | 0 | 0 | |
Pension liabilities | (69) | (53) | |
Net liabilities recognized in the consolidated balance sheets | (69) | (53) | |
Pension Benefits | Non-Qualified & International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit cost (included in accrued liabilities) | (6) | (5) | |
Pension liabilities | (87) | (79) | |
Net liabilities recognized in the consolidated balance sheets | $ (93) | $ (84) |
Retirement Plans - Amounts in A
Retirement Plans - Amounts in Accumulated Other Comprehensive Loss (Detail) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ (637) | $ (708) |
Total | (637) | (708) |
Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | (604) | (686) |
Total | (604) | (686) |
Non-Qualified & International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | (33) | (22) |
Total | $ (33) | $ (22) |
Retirement Plans - Amounts Re_2
Retirement Plans - Amounts Recognized in Other Comprehensive Loss (Detail) - Pension Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of Net actuarial loss | $ 11 |
Settlements | 137 |
Amounts arising during the period, Net actuarial (loss) gain | (77) |
Total | 71 |
Qualified | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of Net actuarial loss | 10 |
Settlements | 137 |
Amounts arising during the period, Net actuarial (loss) gain | (65) |
Total | 82 |
Non-Qualified & International | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of Net actuarial loss | 1 |
Settlements | 0 |
Amounts arising during the period, Net actuarial (loss) gain | (12) |
Total | $ (11) |
Retirement Plans - Amounts in_2
Retirement Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year (Detail) - Pension Benefits $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 19 |
Qualified | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 18 |
Non-Qualified & International | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 1 |
Retirement Plans - Weighted-Ave
Retirement Plans - Weighted-Average Assumptions Used to Determine Net Benefit Obligation (Detail) - Pension Benefits | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.30% | 4.40% |
Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.30% | 4.40% |
Non-Qualified & International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.40% | 4.50% |
Retirement Plans - Summary of P
Retirement Plans - Summary of Projected Benefit Obligations in Excess of Plan Assets (Detail) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,256 | $ 2,403 |
Fair value of plan assets | 2,094 | 2,265 |
Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 2,159 | 2,318 |
Fair value of plan assets | 2,090 | 2,265 |
Non-Qualified & International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 97 | 85 |
Fair value of plan assets | $ 4 | $ 0 |
Retirement Plans - Accumulated
Retirement Plans - Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 2,252 | $ 2,403 |
Fair value of plan assets | 2,091 | 2,265 |
Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 2,159 | 2,318 |
Fair value of plan assets | 2,090 | 2,265 |
Non-Qualified & International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 93 | 85 |
Fair value of plan assets | $ 1 | $ 0 |
Retirement Plans - Expected Ben
Retirement Plans - Expected Benefit Payments (Detail) - Pension Benefits $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 101 |
2021 | 106 |
2022 | 112 |
2023 | 116 |
2024 | 122 |
2025-2029 | 638 |
Qualified | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 95 |
2021 | 100 |
2022 | 106 |
2023 | 110 |
2024 | 116 |
2025-2029 | 608 |
Non-Qualified & International | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 6 |
2021 | 6 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
2025-2029 | $ 30 |
Retirement Plans - Allocation o
Retirement Plans - Allocation of Plan Assets, Pension Plan (Detail) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | $ 2,094 | $ 2,269 | $ 2,480 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 431 | 397 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 1,274 | 1,407 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 35 | 71 | |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 22 | 54 | |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 13 | 17 | |
Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 357 | 343 | |
Equity | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 357 | 343 | |
Equity | 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 | 1,311 | 1,389 | |
Fixed Income | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 52 | 0 | |
Fixed Income | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 1,259 | 1,389 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 2 | 1 | |
Other | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | 0 | |
Other | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 2 | 1 | |
Investments Measurement at NAV as a Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 389 | 465 | |
Investments Measurement at NAV as a Practical Expedient | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | 0 | 0 | |
Investments Measurement at NAV as a Practical Expedient | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the company's benefit plan assets | $ 0 | $ 0 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Multiemployer Pension Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer Plans [Line Items] | |||
Other Charges | $ 2 | $ 2 | $ 4 |
Multiemployer pension plan withdrawal obligations | |||
Multiemployer Plans [Line Items] | |||
Other Charges | 2 | 2 | 4 |
Multiemployer pension plan withdrawal obligations | Multiemployer Plans, Pension | |||
Multiemployer Plans [Line Items] | |||
Other Charges | 7 | 5 | 5 |
Multiemployer pension plan withdrawal obligations | Multiemployer Plans, Pension | Unrelated to facility closures | |||
Multiemployer Plans [Line Items] | |||
Other Charges | 2 | 2 | 4 |
Multiemployer pension plan withdrawal obligations | Multiemployer Plans, Pension | Related to facility closures | |||
Multiemployer Plans [Line Items] | |||
Other Charges | $ 5 | $ 3 | $ 1 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Earnings from Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||
U.S. | $ (313) | $ (18) | $ (71) |
Foreign | 25 | 28 | 27 |
(Loss) income before income taxes | $ (288) | $ 10 | $ (44) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) From Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U S Federal, Current | $ 0 | $ 4 | $ 20 |
U S State and Local, Current | 0 | 1 | 1 |
Foreign, Current | 5 | 7 | 7 |
Current income tax expense | 5 | 12 | 28 |
U S Federal, Deferred | (5) | (3) | (11) |
U S State and Local, Deferred | 6 | (2) | (4) |
Foreign, Deferred | 1 | 26 | 0 |
Deferred income tax expense (benefit) | 2 | 21 | (15) |
Income tax expense | $ 7 | $ 33 | $ 13 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Deferred tax assets valuation allowance on continuing operations, net | $ 67,000,000 | ||
Deferred tax assets valuation allowance on continuing operations, gross | 85,000,000 | ||
Tax provision related to OCI | 18,000,000 | ||
Tax benefit related to OCI | $ 18,000,000 | ||
Cumulative loss incurred period | 3 years | ||
Reversal of deferred tax liabilities | $ 2,000,000 | ||
Valuation allowance exceeds net deferred tax assets | 2,000,000 | ||
Deferred tax asset recognized upon realization | 67,000,000 | ||
Unrelated valuation allowance release | 1,000,000 | ||
Interest expense carryforward, net operating loss and other tax carryforwards expiring between 2020 and 2029 | 11,000,000 | ||
Cash payments for income taxes | 9,000,000 | $ 11,000,000 | $ 36,000,000 |
Cash refunds for income taxes | 2,000,000 | 10,000,000 | |
Unrecognized tax benefits | 0 | 0 | |
Interest expense, net of tax benefits related to remaining tax uncertainties | 0 | 0 | |
Penalty amounts recognized | 0 | 0 | $ 0 |
Accrued interest related to income tax uncertainties | 0 | ||
Accrued penalties related to income tax uncertainties | 0 | 0 | |
Domestic | |||
Income Tax [Line Items] | |||
Interest expense, Net operating and other tax loss carryforwards | 51,000,000 | 32,000,000 | |
Foreign | |||
Income Tax [Line Items] | |||
Interest expense, Net operating and other tax loss carryforwards | $ 0 | 0 | |
Mexico | |||
Income Tax [Line Items] | |||
Deferred tax asset, cumulative income period | 3 years | ||
Other | Europe | |||
Income Tax [Line Items] | |||
Income tax non-cash provision recorded | $ 25,000,000 | 25,000,000 | |
Deferred tax asset tax carryforwards disposed | 125,000,000 | ||
Deferred tax asset valuation allowances disposed | $ 108,000,000 |
Income Taxes - Reconciliation F
Income Taxes - Reconciliation From Federal Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 35.00% |
Intraperiod allocation exception under ASC 740-20 | 6.40% | 0.00% | 0.00% |
State and local income taxes, net of U.S. federal income tax benefit | 4.00% | (12.00%) | 4.00% |
Disposition of European printing business | 0.00% | 242.40% | 0.00% |
International investment tax credit | 0.00% | 6.20% | 25.90% |
Domestic manufacturing deduction | 0.00% | 0.00% | 1.30% |
Section 162(m) limitation | (0.10%) | 8.20% | (5.10%) |
Meals and entertainment disallowance | (0.10%) | 4.40% | (1.30%) |
Withholding taxes | (0.10%) | 3.20% | 0.00% |
Foreign tax rate differential | (0.20%) | 9.60% | 6.50% |
Fringe benefits disallowance | (0.20%) | 4.50% | 0.00% |
Non-deductible share-based compensation | (0.50%) | 11.40% | (8.90%) |
Transition tax | 0.00% | 9.00% | (36.20%) |
Deferred tax effects | 0.00% | 4.40% | (19.20%) |
Foreign income inclusion | (1.00%) | 0.70% | 0.00% |
Impairment charges | (3.20%) | 1.30% | (21.80%) |
Change in valuation allowances | (29.30%) | (5.00%) | (22.60%) |
Other | 1.00% | 10.10% | 11.90% |
Effective income tax rate | (2.30%) | 319.40% | (30.50%) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Pension plan liabilities | $ 47 | $ 41 |
Lease liabilities | 40 | 0 |
Accrued liabilities | 37 | 35 |
Interest expense carryforward | 32 | 15 |
Net operating losses and other tax carryforwards | 19 | 17 |
Foreign depreciation | 5 | 6 |
Other | 2 | 3 |
Total deferred tax assets | 182 | 117 |
Valuation allowances | (77) | (11) |
Net deferred tax assets | 105 | 106 |
ROU assets | (38) | 0 |
Accelerated depreciation | (29) | (38) |
Other intangible assets | (17) | (25) |
Revenue recognition | (6) | (4) |
Inventories | (2) | (7) |
Other | (6) | (5) |
Total deferred tax liabilities | (98) | (79) |
Net deferred tax assets | $ 7 | $ 27 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | |||
Balance, beginning of year | $ 11 | $ 115 | $ 87 |
Current year expense-net | 66 | 0 | 9 |
Foreign exchange and other | 0 | 4 | 19 |
Balance, end of year | 77 | 11 | 115 |
Europe | |||
Valuation Allowance [Line Items] | |||
Disposition of printing business | $ 0 | $ (108) | $ 0 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | $ 178 | $ 178 | $ 248 | $ 240 |
Net change in accumulated other comprehensive loss | 107 | |||
Balance | (72) | 178 | 248 | |
Pension Plan Cost | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (529) | (529) | (428) | (462) |
Other comprehensive income (loss) before reclassifications | 105 | 46 | (19) | 23 |
Amounts reclassified from accumulated other comprehensive loss | 8 | 15 | 11 | |
Reclassification to accumulated deficit | (97) | |||
Net change in accumulated other comprehensive loss | 54 | (101) | 34 | |
Balance | (475) | (529) | (428) | |
Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (55) | (55) | (48) | (69) |
Other comprehensive income (loss) before reclassifications | 2 | (7) | 21 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Reclassification to accumulated deficit | 0 | |||
Net change in accumulated other comprehensive loss | 2 | (7) | 21 | |
Balance | (53) | (55) | (48) | |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | $ (584) | (584) | (476) | (531) |
Other comprehensive income (loss) before reclassifications | 48 | (26) | 44 | |
Amounts reclassified from accumulated other comprehensive loss | 8 | 15 | 11 | |
Reclassification to accumulated deficit | (97) | |||
Net change in accumulated other comprehensive loss | 56 | (108) | 55 | |
Balance | $ (528) | $ (584) | $ (476) |
Comprehensive Income - Narrativ
Comprehensive Income - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net impact to accumulated other comprehensive loss | $ 107 | ||||
ASU 2018-02 | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Cummulative effect on equity or net asset upon adoption of accounting standard | $ 97 | ||||
Pension Plan Cost | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net impact to accumulated other comprehensive loss | $ 105 | 46 | $ (19) | $ 23 | |
Increase to accumulated other comprehensive loss | 2 | ||||
Net impact to accumulated other comprehensive loss | $ 54 | (101) | $ 34 | ||
Cummulative effect on equity or net asset upon adoption of accounting standard | $ 97 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Reclassifications From Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Amortization of Pension Plan Cost: Net Actuarial Loss | ||||
Reclassification from Accumulated Other Comprehensive Loss | ||||
Reclassifications before tax | [1] | $ 11 | $ 20 | $ 18 |
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification from Accumulated Other Comprehensive Loss | ||||
Reclassifications before tax | 11 | 20 | 18 | |
Income tax expense | 3 | 5 | 7 | |
Reclassifications, net of tax | $ 8 | $ 15 | $ 11 | |
[1] | These accumulated other comprehensive income components are included in the calculation of net periodic pension benefits plan (income) expense that is recognized all in investment and other (income)-net in the consolidated statements of operations (refer to Note 15, Retirement Plans |
Stock and Incentive Programs -
Stock and Incentive Programs - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 7 | $ 12 | $ 13 |
Tax benefit from share-based compensation expense | $ 1 | $ 2 | |
Maximum | 2016 Performance Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award term (in years) | 10 years | ||
Stock Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award term (in years) | 10 years | ||
Stock Options | Maximum | After Retirement Date | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award term (in years) | 5 years | ||
Restricted Stock Units | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting term | 3 years |
Stock and Incentive Programs _2
Stock and Incentive Programs - Stock Options - Narrative (Detail) | Dec. 31, 2019shares |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock options | 0 |
Stock and Incentive Programs _3
Stock and Incentive Programs - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Nonvested at beginning of period, Shares | shares | 897,000 |
Granted, Shares | shares | 926,870 |
Vested, Shares | shares | (338,000) |
Forfeited, Shares | shares | (182,000) |
Nonvested at end of period, Shares | shares | 1,304,000 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares | $ 19.65 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 6.28 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 25.59 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 10.15 |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ / shares | $ 9.93 |
Stock and Incentive Programs _4
Stock and Incentive Programs - Restricted Stock Units - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 7 | $ 12 | $ 13 |
LSC Communications, RRD and Donnelley Financial Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares granted to certain executive officers and senior management | 926,870 | ||
Potential payout for awards | 810,780 | ||
LSC Communications, RRD and Donnelley Financial Restricted Stock Units | Employees, Officers and Directors | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 4 | $ 6 | $ 9 |
Unrecognized share-based compensation cost | $ 6 | ||
Equity instruments other than options expected to vest, Shares | 1,300,000 | ||
Equity instruments other than options expected to vest, weighted-average grant date fair value | $ 9.93 | ||
Unrecognized compensation expense, weighted average period of recognition | 1 year 8 months 12 days |
Stock and Incentive Programs _5
Stock and Incentive Programs - Summary of Restricted Stock Award Activity for Employees (Detail) - Restricted Stock Award shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Nonvested at beginning of period, Shares | shares | 45 |
Vested, Shares | shares | (42) |
Forfeited, Shares | shares | (3) |
Nonvested at end of period, Shares | shares | 0 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares | $ 26.26 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 26.26 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 26.26 |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Stock and Incentive Programs _6
Stock and Incentive Programs - Restricted Stock Awards - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 7 | $ 12 | $ 13 |
Restricted Stock Award | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 1 | $ 1 | $ 1 |
Stock and Incentive Programs _7
Stock and Incentive Programs - Summary of Performance Restricted Stock Activity for Employees (Detail) - Performance Restricted Stock - $ / shares | Oct. 02, 2019 | Dec. 31, 2018 |
Shares | ||
Nonvested at beginning of period, Shares | 133,000 | |
Vested, Shares | (88,694) | (89,000) |
Forfeited, Shares | (11,000) | |
Nonvested at end of period, Shares | 33,000 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ 27.16 | |
Vested, Weighted Average Grant Date Fair Value | 26.26 | |
Forfeited, Weighted Average Grant Date Fair Value | 28.94 | |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ 28.94 |
Stock and Incentive Programs _8
Stock and Incentive Programs - Performance Restricted Stock - Narrative (Detail) - USD ($) $ in Millions | Oct. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 7 | $ 12 | $ 13 | ||
Performance Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted to certain executive officers | 44,760 | 266,072 | |||
Shares vested to certain executive officers | 88,694 | 89,000 | |||
Potential payout for awards | 33,370 | 266,072 | |||
Share-based compensation | $ 2 | $ 3 | $ 3 | ||
Unrecognized compensation expense, weighted average period of recognition | 2 months 12 days | ||||
Performance Restricted Stock | October 1, 2017 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage on achievement of performance target | 33.33% | ||||
Performance Restricted Stock | October 1, 2018 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage on achievement of performance target | 33.33% | ||||
Performance Restricted Stock | October 1, 2019 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage on achievement of performance target | 33.33% |
Stock and Incentive Programs _9
Stock and Incentive Programs - Summary of Performance Share Units Activity for Employees (Detail) - Performance Share Units shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Nonvested at beginning of period, Shares | shares | 258 |
Forfeited, Shares | shares | (27) |
Nonvested at end of period, Shares | shares | 231 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares | $ 13.85 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 13.68 |
Nonvested at end of period, Weighted Average Grant Date Fair Value | $ / shares | $ 13.87 |
Stock and Incentive Programs_10
Stock and Incentive Programs - Performance Share Awards - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 7,000,000 | $ 12,000,000 | $ 13,000,000 |
Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares granted to certain members of senior management | 0 | 248,583 | 28,520 |
Potential payout for awards | 0 | 24,612 | |
Unrecognized share-based compensation cost | $ 0 | ||
Unrecognized compensation expense, weighted average period of recognition | 2 months 12 days | ||
Share-based compensation | $ 1,000,000 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | Oct. 31, 2019Segment | Dec. 31, 2019SegmentCategory | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Number of reporting units | 3 | ||
Magazines, Catalogs and Logistics | |||
Segment Reporting Information [Line Items] | |||
Number of reporting units | 2 | ||
Office Products | |||
Segment Reporting Information [Line Items] | |||
Number of core product categories | Category | 5 | ||
Sales Revenue Segment | Product Concentration Risk | Magazines, Catalogs and Logistics | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales by segment | 47.00% | ||
Sales Revenue Segment | Product Concentration Risk | Book | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales by segment | 30.00% | ||
Sales Revenue Segment | Product Concentration Risk | Office Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales by segment | 16.00% | ||
Sales Revenue Segment | Product Concentration Risk | Mexico | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales by segment | 3.00% | ||
Sales Revenue Segment | Product Concentration Risk | Other | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales by segment | 4.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 3,326 | $ 3,826 | $ 3,603 |
Income (Loss) from Operations | (157) | 42 | (19) |
Assets of Operations | 1,649 | 1,754 | 2,014 |
Depreciation and Amortization | 120 | 138 | 160 |
Capital Expenditures | 71 | 63 | 60 |
Magazines, Catalogs and Logistics | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,559 | 1,767 | |
Book | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,011 | 1,055 | |
Office Products | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 517 | 562 | |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 91 | 97 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 149 | 347 | 405 |
Income (Loss) from Operations | 7 | 13 | 14 |
Assets of Operations | 29 | 5 | 148 |
Depreciation and Amortization | 1 | 6 | 8 |
Capital Expenditures | 0 | 2 | 4 |
Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 3,178 | 3,481 | 3,198 |
Income (Loss) from Operations | (94) | 80 | 45 |
Assets of Operations | 1,471 | 1,669 | 1,784 |
Depreciation and Amortization | 119 | 131 | 150 |
Capital Expenditures | 68 | 57 | 48 |
Total Operating Segments | Magazines, Catalogs and Logistics | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,559 | 1,767 | 1,583 |
Income (Loss) from Operations | (114) | (31) | (73) |
Assets of Operations | 645 | 726 | 780 |
Depreciation and Amortization | 54 | 62 | 72 |
Capital Expenditures | 35 | 24 | 24 |
Total Operating Segments | Book | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,011 | 1,055 | 1,022 |
Income (Loss) from Operations | (36) | 58 | 62 |
Assets of Operations | 482 | 572 | 553 |
Depreciation and Amortization | 49 | 52 | 60 |
Capital Expenditures | 30 | 31 | 13 |
Total Operating Segments | Office Products | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 517 | 562 | 495 |
Income (Loss) from Operations | 42 | 40 | 42 |
Assets of Operations | 275 | 298 | 377 |
Depreciation and Amortization | 12 | 13 | 15 |
Capital Expenditures | 2 | 1 | 5 |
Total Operating Segments | Mexico | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 91 | 97 | 98 |
Income (Loss) from Operations | 14 | 13 | 14 |
Assets of Operations | 69 | 73 | 74 |
Depreciation and Amortization | 4 | 4 | 3 |
Capital Expenditures | 1 | 1 | 6 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (1) | (2) | 0 |
Income (Loss) from Operations | (70) | (51) | (78) |
Assets of Operations | 149 | 80 | 82 |
Depreciation and Amortization | 0 | 1 | 2 |
Capital Expenditures | $ 3 | $ 4 | $ 8 |
Segment Information - Schedul_2
Segment Information - Schedule of Corporate Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 105 | $ 21 | ||
Property, plant and equipment, net | 440 | 508 | ||
Prepaid expenses and other current assets | 36 | 28 | ||
Right-of-use assets for operating leases | 163 | $ 201 | 0 | |
Deferred income tax assets, net of valuation allowance | 105 | 106 | ||
LIFO reserves | (46) | (52) | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 80 | 11 | $ 12 | |
Software | 17 | 19 | 17 | |
Long-term investments | 16 | 14 | 13 | |
Property, plant and equipment, net | 15 | 14 | 14 | |
Prepaid expenses and other current assets | 15 | 12 | 10 | |
Receivables, less allowances for doubtful accounts | 14 | 17 | 19 | |
Right-of-use assets for operating leases | 10 | 0 | 0 | |
Deferred income tax assets, net of valuation allowance | 1 | 22 | 19 | |
LIFO reserves | $ (46) | $ (52) | $ (57) |
Geographic Areas - Net Sales an
Geographic Areas - Net Sales and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 3,326 | $ 3,826 | $ 3,603 | |
Long-lived assets | [1] | 517 | 601 | 675 |
North America | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | [2] | 3,176 | 3,495 | 3,226 |
Long-lived assets | [1],[2] | 487 | 571 | 607 |
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 52 | 225 | 271 | |
Long-lived assets | [1] | 0 | 0 | 32 |
Mexico | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 98 | 106 | 106 | |
Long-lived assets | [1] | $ 30 | $ 30 | $ 36 |
[1] | Includes net property, plant and equipment and other noncurrent assets. | |||
[2] | North America includes the United States and Canada. |
Related Parties - Narrative (De
Related Parties - Narrative (Detail) - USD ($) shares in Millions, $ in Millions | Mar. 28, 2017 | Mar. 31, 2017 |
RRD | ||
Related Party Transaction [Line Items] | ||
Number of common stock shares sold | 6.2 | |
Ownership percentage | 19.25% | |
Freight, logistics and premedia services purchased | $ 51 | |
RRD’s subsidiaries | ||
Related Party Transaction [Line Items] | ||
Net revenues from related party sales | $ 32 |