Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | RR Donnelley & Sons Co | |
Entity Central Index Key | 0000029669 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 71.3 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-4694 | |
Entity Tax Identification Number | 36-1004130 | |
Entity Address, Address Line One | 35 West Wacker Drive | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601 | |
City Area Code | 312 | |
Local Phone Number | 326-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RRD | |
Security Exchange Name | NYSE | |
Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Security Exchange Name | NYSE | |
No Trading Symbol Flag | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 450.7 | $ 190.8 |
Receivables, less allowances for credit losses of $23.8 in 2020 (2019 - $20.5) | 1,063.2 | 1,161.6 |
Inventories (Note 3) | 300.7 | 301.8 |
Prepaid expenses and other current assets | 105.1 | 98.6 |
Total current assets | 1,919.7 | 1,752.8 |
Property, plant and equipment-net (Note 4) | 475.8 | 500 |
Goodwill (Note 5) | 432.5 | 457.8 |
Other intangible assets-net (Note 5) | 93.3 | 99.7 |
Deferred income taxes | 62.1 | 57.8 |
Operating lease assets | 211 | 205.5 |
Other noncurrent assets | 243.1 | 256.5 |
Total assets | 3,437.5 | 3,330.1 |
LIABILITIES | ||
Accounts payable | 690.5 | 852.2 |
Accrued liabilities and other | 302.2 | 334.2 |
Short-term operating lease liabilities | 65.8 | 68.7 |
Short-term and current portion of long-term debt (Note 14) | 208.1 | 71.2 |
Total current liabilities | 1,266.6 | 1,326.3 |
Long-term debt (Note 14) | 1,960.3 | 1,747.2 |
Pension liabilities | 106.5 | 113.6 |
Other postretirement benefits plan liabilities | 58.5 | 61.7 |
Long-term income tax liability | 75.8 | 75.8 |
Long-term operating lease liabilities | 150 | 141 |
Other noncurrent liabilities | 236.4 | 234.8 |
Total liabilities | 3,854.1 | 3,700.4 |
Commitments and Contingencies (Note 13) | ||
RRD stockholders' equity | ||
Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None | ||
Common stock, $0.01 par value Authorized: 165.0 shares; Issued: 89.0 shares in 2020 and 2019 | 0.9 | 0.9 |
Additional paid-in-capital | 3,267.1 | 3,348 |
Accumulated deficit | (2,352.2) | (2,336.8) |
Accumulated other comprehensive loss | (207.2) | (176.2) |
Treasury stock, at cost, 17.7 shares in 2020 (2019 - 18.1 shares) | (1,137.8) | (1,219.6) |
Total RRD stockholders' equity | (429.2) | (383.7) |
Noncontrolling interests | 12.6 | 13.4 |
Total equity | (416.6) | (370.3) |
Total liabilities and equity | $ 3,437.5 | $ 3,330.1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for credit losses | $ 23.8 | $ 20.5 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 165,000,000 | 165,000,000 |
Common stock, Issued | 89,000,000 | 89,000,000 |
Treasury stock, shares | 17,700,000 | 18,100,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total net sales | $ 1,409.5 | $ 1,521.9 |
Total cost of sales | 1,135.7 | 1,243.6 |
Total gross profit | 273.8 | 278.3 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 179.1 | 199.6 |
Restructuring, impairment and other expense-net (Note 6) | 31.9 | 17.1 |
Depreciation and amortization | 40.8 | 42.7 |
Other operating expense (income) | 13.2 | (4.4) |
Income from operations | 8.8 | 23.3 |
Interest expense-net | 33.9 | 40.1 |
Investment and other income-net | (3.8) | (4.5) |
Gain on debt extinguishment | (0.2) | |
Loss before income taxes | (21.1) | (12.3) |
Income tax benefit | (8.2) | (3.8) |
Net loss | (12.9) | (8.5) |
Less: income attributable to noncontrolling interests | 0.1 | 0.3 |
Net loss attributable to RRD common stockholders | $ (13) | $ (8.8) |
Net loss per share attributable to RRD common stockholders (Note 10): | ||
Basic net loss per share | $ (0.18) | $ (0.12) |
Diluted net loss per share | $ (0.18) | $ (0.12) |
Weighted average number of common shares outstanding: | ||
Basic | 71.6 | 70.8 |
Diluted | 71.6 | 70.8 |
Products | ||
Total net sales | $ 1,145.5 | $ 1,230.9 |
Total cost of sales | 922.8 | 1,008.8 |
Total gross profit | 222.7 | 222.1 |
Services | ||
Total net sales | 264 | 291 |
Total cost of sales | 212.9 | 234.8 |
Total gross profit | $ 51.1 | $ 56.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (12.9) | $ (8.5) |
Other comprehensive (loss) income, net of tax (Note 11): | ||
Translation adjustments | (20) | 1.2 |
Adjustments for net periodic pension and postretirement benefits plan cost | 0.8 | (0.2) |
Changes in fair value of derivatives | (12) | |
Other | 0.6 | |
Other comprehensive (loss) income | (31.2) | 1.6 |
Comprehensive loss | (44.1) | (6.9) |
Less: comprehensive income attributable to non-controlling interests | (0.1) | 0.5 |
Comprehensive loss attributable to RRD common stockholders | $ (44) | $ (7.4) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net loss | $ (12.9) | $ (8.5) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment charges and other-net | 20.6 | 0.1 |
Depreciation and amortization | 40.8 | 42.7 |
Provision for credit losses | 4.4 | 3.9 |
Share-based compensation | 1.4 | 3.4 |
Deferred income taxes | (1.8) | 1.8 |
Net pension and other postretirement benefits plan income | (3.4) | (4) |
Loss on disposition of business and other assets | 6.6 | (4.7) |
Gain on debt extinguishments | (0.2) | |
Other | 1.3 | 5.7 |
Changes in operating assets and liabilities: | ||
Accounts receivable-net | 62.7 | 88.6 |
Inventories | (4.1) | 1.4 |
Prepaid expenses and other current assets | (4.9) | (6.9) |
Accounts payable | (143.3) | (213.3) |
Current income taxes | (13.5) | (30.9) |
Accrued liabilities and other | (29.3) | (7.3) |
Pension and other postretirement benefits plan contributions | (4) | (2) |
Net cash used in operating activities | (79.6) | (130) |
INVESTING ACTIVITIES | ||
Capital expenditures | (17.7) | (37.4) |
Disposition of businesses | 12.9 | (0.7) |
Proceeds from sales of investments and other assets | 2.9 | 0.3 |
Proceeds related to company-owned life insurance | 1.6 | (0.3) |
Net cash used in investing activities | (0.3) | (38.1) |
FINANCING ACTIVITIES | ||
Payments on other short-term debt | (6.5) | |
Payments of current maturities and long-term debt | (58.7) | (173.7) |
Proceeds from credit facility borrowings | 578 | 512 |
Payments on credit facility borrowings | (170) | (253) |
Dividends paid | (2.1) | (2.1) |
Payments of withholding taxes on share-based compensation | (0.6) | (0.9) |
Other financing activities | (0.7) | (1) |
Net cash provided by financing activities | 345.9 | 74.8 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (6) | 2.5 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 260 | (90.8) |
Cash, cash equivalents and restricted cash at beginning of year | 223.8 | 403.6 |
Cash, cash equivalents and restricted cash at end of period | $ 483.8 | $ 312.8 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley & Sons Company and its subsidiaries (“RRD,” the “Company,” “we,” “us,” and “our”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in our latest Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 26, 2020. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2020 and December 31, 2019 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 450.7 $ 190.8 Restricted cash - current (a) 33.0 32.9 Restricted cash - noncurrent (b) 0.1 0.1 Total cash, cash equivalents and restricted cash $ 483.8 $ 223.8 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets Cash payments for income . Cash refunds for income taxes were $2.4 million and $0.7 million . Income taxes receivable of $15.4 million and $12.0 million as of March 31, 2020 and December 31, 2019, respectively, are included within Prepaid expenses and other current assets Allowance for credit losses We recognize an allowance for credit losses for financial assets carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on credit losses expected to arise over the life of the asset’s contractual term, which includes consideration of prepayments. Assets are written off when we determine that such financial assets are deemed uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously written off, not to exceed the aggregate of the amount previously written off, are included in determining the necessary reserve at the balance sheet date. We pool financial assets based on similar risk characteristics to estimate expected credit losses. We estimate expected credit losses on financial assets individually when those assets do not share similar risk characteristics. We closely monitor our accounts receivable including timely account reconciliations, detailed reviews of past due accounts, updated credit limits, and monthly analysis of the adequacy of our reserve for credit losses. We utilize a loss rate approach to determine lifetime expected credit losses for our financial assets. This method is used for calculating an estimate of losses based primarily on our historical loss experience. In determining loss rates, we evaluate information related to historical losses, adjusted for current conditions and further adjusted for the period of time that we can reasonably forecast. We have concluded that we can reasonably support a forecast period for the contractual life of our financial assets. Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider the following: the customer or vendor’s creditworthiness, changes in our policy and procedures to establish customer credit limits, changes in the payment terms of receivables, existence and effect of any concentration of credit and changes in the level of such concentrations, and the effects of other external forces such as the current and forecasted direction of the economic and business environment. We have considered the current and expected economic and market conditions as a result of COVID-19 in determining credit loss expense for the period ended March 31, 2020. The allowance for credit losses as of December 31, 2019 and March 31, 2020, was as follows: Beginning Balance December 31, 2019 Additional Allowance Recognized Due to Adoption of Topic ASC326 Credit Loss Expense for the period Write offs During the Period Ending Balance March 31, 2020 Trade receivables $ 20.5 0.2 4.3 (1.2 ) $ 23.8 Notes receivables 0.1 — — — 0.1 Rebates from vendors — 0.1 0.1 — 0.2 Recoveries in the quarter ended March 31, 2020 were immaterial. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Disaggregation of Revenue The following table presents net sales disaggregated by products and services: Three Months Ended March 31, 2020 2019 Products Commercial print $ 363.4 $ 422.4 Direct marketing 182.8 148.5 Statements 126.9 149.5 Labels 121.6 120.5 Packaging 115.1 139.5 Digital print and fulfillment 113.6 109.6 Supply chain management 69.7 78.5 Forms 52.4 62.4 Total products net sales $ 1,145.5 $ 1,230.9 Services Logistics $ 195.2 $ 201.7 Business process outsourcing 41.4 61.8 Digital and creative solutions 27.4 27.5 Total services net sales $ 264.0 $ 291.0 Total net sales $ 1,409.5 $ 1,521.9 Variable Consideration Certain clients may receive volume-based rebates or early payment discounts, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be earned by our clients and reduce revenue accordingly. We do not expect significant changes to estimates of variable consideration. Given the nature of our products and the history of returns, product returns are not significant. The following table provides information about contract assets and liabilities from contracts with clients: Contract Assets Contract Liabilities Short-Term Short-Term Long-Term Balance at December 31, 2019 $ 2.0 $ 18.9 $ 0.2 Balance at March 31, 2020 3.7 13.5 0.2 Contract liabilities primarily relate to client advances received prior to completion of performance obligations. Reductions in contract liabilities are a result of our completion of performance obligations. Revenue recognized during the three months ended March 31, 2020 from amounts included in contract liabilities at the beginning of the period was approximately $13.6 million. During the three months ended March 31, 2020, we reclassified $2.0 million of contract assets to receivables as a result of the completion of the performance obligation and the right to the consideration becoming unconditional. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Raw materials and manufacturing supplies $ 140.5 $ 139.4 Work in process 57.1 64.6 Finished goods 121.9 116.4 LIFO reserve (18.8 ) (18.6 ) Total inventories $ 300.7 $ 301.8 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment The components of property, plant and equipment at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Land $ 47.2 $ 47.8 Buildings 375.3 379.9 Machinery and equipment 1,683.1 1,704.7 2,105.6 2,132.4 Less: Accumulated depreciation (1,629.8 ) (1,632.4 ) Total property, plant and equipment-net $ 475.8 $ 500.0 During the three months ended March 31, 2020 and 2019 depreciation expense was $28.2 million and $28.3 million, respectively. During the fourth quarter of 2017, we entered into an agreement to sell a printing facility in Shenzhen, China and transfer the related land use rights. As of March 31, 2020, we have received non-refundable deposits in accordance with the terms of the agreement of approximately $98.2 million which is recorded in Other noncurrent liabilities on the Consolidated Balance Sheets. As of March 31, 2020, the carrying cost of the building and land use rights is recorded in Other noncurrent assets and is not material. Additional deposits will be paid to us in accordance with the agreement. Gross proceeds from the sale, including non-refundable deposits, are expected to be approximately $250.0 million, subject to |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets The carrying amount of goodwill at March 31, 2020 and December 31, 2019 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2019 Goodwill $ 2,210.9 $ 519.5 $ 2,730.4 Accumulated impairment losses (2,018.5 ) (254.1 ) (2,272.6 ) Total 192.4 265.4 457.8 Impairment (20.6 ) — (20.6 ) Disposition (3.9 ) — (3.9 ) Foreign exchange (0.8 ) — (0.8 ) Net book value as of March 31, 2020 Goodwill 2,180.0 519.5 2,699.5 Accumulated impairment losses (2,012.9 ) (254.1 ) (2,267.0 ) Total $ 167.1 $ 265.4 $ 432.5 During the three months ended March 31, 2020, we recorded a non-cash charge of $20.6 million to recognize the impairment of goodwill in the logistics reporting unit. See Note 6, Restructuring, Impairment and Other The components of other intangible assets at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 430.5 $ (352.4 ) $ 78.1 $ 433.9 $ (350.0 ) $ 83.9 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 24.4 (24.3 ) 0.1 24.6 (24.5 ) 0.1 Trade names 31.7 (16.6 ) 15.1 31.8 (16.1 ) 15.7 Total other intangible assets $ 488.6 $ (395.3 ) $ 93.3 $ 492.3 $ (392.6 ) $ 99.7 Amortization expense for other intangible assets was $5.3 million and $6.4 million for the three months ended March 31, 2020 and 2019, respectively. |
Restructuring, Impairment and O
Restructuring, Impairment and Other | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other | 6. Restructuring, Impairment and Other For the three months ended March 31, 2020 and 2019, we recorded the following net restructuring, impairment and other expenses (income): Three Months Ended March 31, 2020 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 5.8 $ 1.1 $ 0.6 $ 18.9 $ 26.4 Marketing Solutions 0.4 — 0.1 — 0.5 Corporate 1.9 3.1 — — 5.0 Total $ 8.1 $ 4.2 $ 0.7 $ 18.9 $ 31.9 Three Months Ended March 31, 2019 Employee Other Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Total Business Services $ 7.8 $ 4.7 $ 0.6 $ 0.1 $ 13.2 Marketing Solutions 0.1 — 0.1 — 0.2 Corporate 0.2 3.5 — — 3.7 Total $ 8.1 $ 8.2 $ 0.7 $ 0.1 $ 17.1 Restructuring, Impairment and Other For the three months ended March 31, 2020, we recorded net restructuring charges of $8.1 million for employee termination costs. These charges primarily relate to the closure of the Chilean operations and other announced facility closures in the Business Services segment and the reorganization of selling, general and administrative functions across each segment. We also incurred $4.2 million of other restructuring charges and $0.7 million of multi-employer pension plan (“MEPP”) withdrawal obligation charges during the three months ended March 31, 2020. For the three months ended March 31, 2020, we recorded a non-cash charge of $20.6 million to recognize the impairment of goodwill in the logistics reporting unit within the Business Services segment. The goodwill impairment charge resulted from reductions in the estimated fair value for this reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. Although the Logistics reporting unit reported increases in both net sales and income from operations in the first quarter of 2020, the lower future expectations were driven by expected reduced demand in the near term due to the COVID-19 pandemic. In addition, we recorded net gains of $1.7 million on the sale of restructured facilities for the three months ended March 31, 2020. For the three months ended March 31, 2019, we recorded net restructuring charges of $8.1 million for employee termination costs. These charges primarily related to the planned relocation of a printing facility in Shenzhen, China, other facility closures in the Business Services segment and the reorganization of selling, general and administrative functions across each segment. We also incurred other restructuring charges of $8.2 million and MEPP withdrawal obligation charges of $0.7 million for the three months ended March 31, 2019. We also recorded impairment charges related to facility closures of $0.1 million for the three months ended March 31, 2019. Restructuring and MEPP Reserves Restructuring and MEPP reserves as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Restructuring Foreign December 31, and Other Exchange and Cash March 31, 2019 Charges Other Paid 2020 Employee terminations $ 3.4 $ 8.1 $ — $ (6.2 ) $ 5.3 MEPP withdrawal obligations 40.6 0.7 — (1.7 ) 39.6 Other 8.6 4.2 (0.7 ) (3.9 ) 8.2 Total $ 52.6 $ 13.0 $ (0.7 ) $ (11.8 ) $ 53.1 The current portion of restructuring reserves of $16.4 million at March 31, 2020 was included in Accrued liabilities and other, while the long-term portion of $36.7 million, related to MEPP withdrawal obligations, employee terminations in litigation and other, was included in Other noncurrent liabilities at March 31, 2020. The liabilities for the withdrawal obligations associated with our previous decision to withdraw from all MEPPs included in Accrued liabilities and other and Other noncurrent liabilities are $6.5 million and $33.1 million, respectively, as of March 31, 2020 . We anticipate that payments associated with the employee terminations reflected in the above table will be fully completed by March 2021, excluding employee terminations in litigation within the Business Services segment. Payments on all of our MEPP withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to MEPP withdrawals. The restructuring liabilities classified as “other” primarily consisted of reserves for employee termination litigation and environmental matters. Any potential recoveries or additional charges could affect amounts reported in our consolidated financial statements. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 7. Retirement Plans Components of net pension and other postretirement benefits plan (“OPEB”) income for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Pension income: Service cost $ 0.3 $ 0.2 Interest cost 6.9 8.4 Expected return on plan assets (10.2 ) (11.6 ) Amortization, net 2.5 1.5 Net pension income $ (0.5 ) $ (1.5 ) OPEB income: Interest cost 1.8 2.6 Expected return on plan assets (3.2 ) (3.3 ) Amortization, net (1.5 ) (1.8 ) Net OPEB income $ (2.9 ) $ (2.5 ) During the three months ended March 31, 2020 and 2019, we contributed $4.0 million and $2.0 million, respectively, to our retirement plans. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 8. Share-Based Compensation Share-based compensation expense was $1.4 million and $3.4 million for the three months ended March 31, 2020 and 2019, respectively. In March 2020, we awarded our annual share-based compensation grants, which consisted of 0.8 million restricted stock units with a grant date fair value of $1.61 per unit and 0.8 million performance share units also with a grant date fair value of $1.61 per unit. The restricted stock units are subject to a three year graded vesting period and the performance share units are subject to a 34 month cliff vesting period. Dividends are not paid on restricted stock units. In addition, in March 2020 we granted 1.5 million cash-settled restricted stock units (“phantom restricted stock units”) and 1.5 million cash-settled performance stock units (“phantom performance stock units”). Our share price on the date of grant was $1.88. The phantom restricted stock units vest and are payable in three equal installments over a period of three years after the grant date. The phantom performance stock units are subject to a 34 month cliff vesting period. Phantom stock units are not shares of our common stock and therefore the recipients of these awards do not receive ownership interest in the Company or stockholder voting rights subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control of the Company. All phantom stock unit awards are classified as liability awards due to their expected settlement in cash and are included in Accrued liabilities and other in the Condensed Consolidated Balance Sheets. Compensation expense for these awards is measured based upon the fair value of the awards at the end of each reporting period. Dividends are not paid on phantom stock units. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | 9. Equity Our equity as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2019 $ 0.9 $ 3,348.0 $ (1,219.6 ) $ (2,336.8 ) $ (176.2 ) $ (383.7 ) $ 13.4 $ (370.3 ) Net (loss) income (13.0 ) (13.0 ) 0.1 (12.9 ) Other comprehensive loss (31.0 ) (31.0 ) (0.2 ) (31.2 ) Share-based compensation 1.4 1.4 1.4 Issuance of share-based awards, net of withholdings and other (82.3 ) 81.8 (0.5 ) (0.5 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-03 (0.3 ) (0.3 ) (0.3 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2020 $ 0.9 $ 3,267.1 $ (1,137.8 ) $ (2,352.2 ) $ (207.2 ) $ (429.2 ) $ 12.6 $ (416.6 ) Our equity as of December 31, 2018 and March 31, 2019, and changes during three months ended March 31, 2019, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2018 $ 0.9 $ 3,404.0 $ (1,285.5 ) $ (2,225.7 ) $ (153.8 ) $ (260.1 ) $ 14.7 $ (245.4 ) Net (loss) income (8.8 ) (8.8 ) 0.3 (8.5 ) Other comprehensive income 1.4 1.4 0.2 1.6 Share-based compensation 3.4 3.4 3.4 Issuance of share-based awards, net of withholdings and other (54.7 ) 53.8 (0.9 ) (0.9 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-02, net of tax 2.6 2.6 2.6 Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2019 $ 0.9 $ 3,352.7 $ (1,231.7 ) $ (2,234.0 ) $ (152.4 ) $ (264.5 ) $ 14.5 $ (250.0 ) |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 10. Earnings per Share Basic earnings per share is calculated by dividing net earnings attributable to RRD common stockholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are excluded if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of our stock price during the applicable period. In periods when we are in a net loss, share-based awards are excluded from the calculation of earnings per share as their inclusion would have an anti-dilutive effect. During the three months ended March 31, 2020 and 2019, no shares of common stock were purchased by us; however, shares were withheld for tax liabilities upon the vesting of equity awards. The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Net loss per share attributable to RRD common stockholders: Basic $ (0.18 ) $ (0.12 ) Diluted $ (0.18 ) $ (0.12 ) Numerator: Net loss attributable to RRD common stockholders $ (13.0 ) $ (8.8 ) Denominator: Basic weighted average number of common shares outstanding 71.6 70.8 Dilutive options and awards — — Diluted weighted average number of common shares outstanding 71.6 70.8 Weighted average number of anti-dilutive share-based awards: Stock options 0.4 0.6 Restricted stock units 1.0 0.7 Total 1.4 1.3 Dividends declared per common share $ 0.03 $ 0.03 |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income | 11. Other Comprehensive (Loss) Income The components of other comprehensive (loss) income and income tax (benefit) expense allocated to each component for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (20.0 ) $ — $ (20.0 ) Adjustments for net periodic pension and OPEB cost 1.0 0.2 0.8 Change in fair value of derivatives (15.7 ) (3.7 ) (12.0 ) Other comprehensive loss $ (34.7 ) $ (3.5 ) $ (31.2 ) Three Months Ended March 31, 2019 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ 1.2 $ — $ 1.2 Adjustments for net periodic pension and OPEB cost (0.3 ) (0.1 ) (0.2 ) Other — (0.6 ) 0.6 Other comprehensive income $ 0.9 $ (0.7 ) $ 1.6 Accumulated other comprehensive (loss) income by component as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2019 $ 1.0 $ (185.7 ) $ 8.5 $ (176.2 ) Other comprehensive loss before reclassifications (11.8 ) — (19.8 ) (31.6 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) 0.8 — 0.6 Net change in accumulated other comprehensive (loss) income (12.0 ) 0.8 (19.8 ) (31.0 ) Balance at March 31, 2020 $ (11.0 ) $ (184.9 ) $ (11.3 ) $ (207.2 ) Accumulated other comprehensive (loss) income by component as of December 31, 2018 and March 31, 2019, and changes during the three months ended March 31, 2019, were as follows: Pension and OPEB Cost Translation Adjustments Other Total Balance at December 31, 2018 $ (155.2 ) $ 1.4 $ — $ (153.8 ) Other comprehensive income before reclassifications — 5.5 0.6 6.1 Amounts reclassified from accumulated other comprehensive income (0.2 ) (4.5 ) — (4.7 ) Net change in accumulated other comprehensive (loss) income (0.2 ) 1.0 0.6 1.4 Balance at March 31, 2019 $ (155.4 ) $ 2.4 $ 0.6 $ (152.4 ) Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, Classification in the Condensed 2020 2019 Consolidated Statements of Operations Translation Adjustments: Net realized gain, before tax $ — $ (4.5 ) Other operating expense (income) Reclassification, net of tax $ — $ (4.5 ) Amortization of pension and OPEB cost: Net actuarial loss $ 1.6 $ 1.5 Investment and other income-net Net prior service credit (0.6 ) (1.8 ) Investment and other income-net Reclassifications before tax 1.0 (0.3 ) Income tax expense (benefit) 0.2 (0.1 ) Reclassification, net of tax 0.8 (0.2 ) Derivatives: Net realized gain $ (0.2 ) $ — Interest expense-net Reclassification, net of tax (0.2 ) — Total reclassifications, net of tax $ 0.6 $ (4.7 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information Our segments and their product and service offerings are summarized below: Business Services Business Services provides customized solutions at scale to help clients inform, service and transact with their customers. The segment’s primary product and service offerings include commercial print, logistics, statement printing, labels, packaging, supply chain management, forms and business process outsourcing. This segment also includes all of our operations in Asia, Europe, Canada and Latin America. Marketing Solutions Marketing Solutions leverages an integrated portfolio of data analytics, creative services and multichannel execution to deliver comprehensive, end-to-end solutions. The segment’s primary product and service offerings include direct marketing, in-store marketing, digital print, kitting, fulfillment, digital and creative solutions and list services. Corporate Corporate consists of unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and last-in-first-out inventory provisions. In addition, certain costs and earnings of employee benefit plans, such as pension and OPEB expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages our cash pooling structures, which enables participating international locations to draw on our international cash resources to meet local liquidity needs. Information by Segment We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended March 31, 2020 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures March 31, 2020 Business Services $ 1,102.2 $ (16.5 ) $ 1,085.7 $ 19.6 $ 26.0 $ 10.7 $ 2,153.0 Marketing Solutions 330.4 (6.6 ) 323.8 24.9 14.2 1.6 699.6 Total operating segments 1,432.6 (23.1 ) 1,409.5 44.5 40.2 12.3 2,852.6 Corporate — — — (35.7 ) 0.6 5.4 584.9 Total operations $ 1,432.6 $ (23.1 ) $ 1,409.5 $ 8.8 $ 40.8 $ 17.7 $ 3,437.5 Three Months Ended March 31, 2019 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2019 Business Services $ 1,255.9 $ (19.6 ) $ 1,236.3 $ 28.6 $ 29.3 $ 23.5 $ 2,329.7 Marketing Solutions 291.9 (6.3 ) 285.6 8.5 12.1 9.2 748.1 Total operating segments 1,547.8 (25.9 ) 1,521.9 37.1 41.4 32.7 3,077.8 Corporate — — — (13.8 ) 1.3 4.7 252.3 Total operations $ 1,547.8 $ (25.9 ) $ 1,521.9 $ 23.3 $ 42.7 $ 37.4 $ 3,330.1 Net restructuring, impairment and other expenses (income) by segment are described in Note 6, Restructuring, Impairment and Other |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies We are subject to laws and regulations relating to the protection of the environment. We provide for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are generally not discounted. We have been designated as a potentially responsible party or have received claims in three active federal and state Superfund and other multiparty remediation sites. In addition to these sites, we may also have the obligation to remediate six other previously and currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that our liability could be joint and several, meaning that we could be required to pay an amount in excess of our proportionate share of the remediation costs. Our understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of our estimated liability. We believe that our recorded accruals, recorded in Accrued liabilities and other and Other noncurrent liabilities, are adequate to cover our share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that we may undertake in the future. However, in our opinion, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material effect on our consolidated results of operations, financial position or cash flows. In April 2019, we received a subpoena from the SEC related to previous business dealings with the Brazilian Ministry of Education. The SEC and Department of Justice (“DOJ”) are investigating the matter, and we are cooperating as they conduct their investigations. In addition, the Brazil authorities are also investigating the matter. From time to time, our clients and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by us from these parties could be considered preference items and subject to return. In addition, we may be party to certain litigation arising in the ordinary course of business. We believe that the final resolution of these preference items and litigation will not have a material effect on our consolidated results of operations, financial position or cash flows. Leases We determine if an arrangement is a lease at inception. Operating leases are recorded in Operating lease assets, Short-term operating lease liabilities and Long-term operating lease liabilities on the Condensed Consolidated Balance Sheets. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. Operating lease assets reflects lease payments and are reduced by any lease incentives received. Our lease terms may include options to extend or not terminate the lease when we are reasonably certain that we will exercise any such options. Leases with an expected term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. Our most significant leases are real estate leases for plants, warehouses, storage facilities, offices and other facilities. For real estate leases, we elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area maintenance charges, are accounted for as a single lease element. Our remaining operating leases are primarily comprised of leases of machinery and technology equipment. Finance leases are not material. Certain of our operating lease agreements include variable payments that are passed-through by the landlord, such as insurance, taxes and common area maintenance, payments based on the usage of the asset and rental payments adjusted periodically for inflation. Pass-through charges, payments due to change in usage of the asset and payments due to changes in inflation are included within variable rent expense. Our lease agreements do not contain material residual value guarantees, restrictions or covenants. Subsequent to the spinoff of LSC Communications, Inc. (“LSC”) and Donnelley Financial Solutions (“Donnelley Financial”) on October 1, 2016, we may be contingently liable for obligations under various operating leases for office, warehouse and manufacturing locations of LSC and Donnelley Financial. In the event that LSC or Donnelley Financial, or any successor lessee, fail to make lease payments or fail to pay other obligations under these lease agreements, we may be required to satisfy those obligations to the lessor. Under various agreements executed at the time of the spinoff, LSC and Donnelley Financial agreed to fully indemnify us in the event that we would be required to make a payment on their behalf; however, there can be no assurance that the indemnities from LSC and Donnelley Financial will be sufficient to satisfy the full amount of any such contingent obligations. Our exposure to these potential contingent liabilities will decrease over time as LSC and Donnelley Financial pay monthly lease obligations and as the leases expire. As of March 31, 2020 and December 31, 2019, these potential contingent obligations were approximately $72.0 million and $78.8 million, respectively |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt Debt at March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Borrowings under the ABL Credit Facility $ 450.0 $ 42.0 7.625% notes due June 15, 2020 64.5 65.8 7.875% notes due March 15, 2021 138.1 167.1 8.875% debentures due April 15, 2021 59.5 60.2 7.000% notes due February 15, 2022 133.4 140.0 6.500% notes due November 15, 2023 275.2 290.6 Term Loan due January 15, 2024 (a) 539.2 540.3 6.000% notes due April 1, 2024 251.8 298.3 6.625% debentures due April 15, 2029 149.8 157.9 8.500% notes due April 15, 2029 49.7 — 8.820% debentures due April 15, 2031 69.0 69.0 Unamortized debt issuance costs (11.8 ) (12.8 ) Total debt 2,168.4 1,818.4 Less: current portion 208.1 71.2 Long-term debt $ 1,960.3 $ 1,747.2 (a) As of March 31, 2020 and December 31, 2019, the interest rate on the Term Loan due January 15, 2024 was 6.60% and 6.80%, respectively. The fair values of the notes and debentures, which were determined using the market approach based upon quoted prices or interest rates available to us for debt obligations with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of our total debt was less than its book value by approximately $35.9 million at March 31, 2020 and greater than its book value by approximately $29.3 million at December 31, 2019. In March 2020, we entered into privately negotiated agreements with the largest holder of our outstanding notes (the “Seller”) to effect a series of refinancing transactions that address a significant portion of the Company’s 2023 and 2024 debt maturities. The agreements included the repurchase of $6.6 million of the 7.00% notes due 2022 and $20.0 million of the 6.00% notes due 2024. We funded these repurchases with a draw from our ABL Credit Facility. We recorded a gain of $0.2 million on these repurchases. The agreements also included an exchange of $277.0 million aggregate principal amount of notes owned by the Seller, consisting of $54.0 million of the 6.50% notes due 2023 (the “2023 Notes”), $177.4 million of the 6.00% notes due in 2024 (the “2024 Notes”), and $45.6 million of the 6.625% debentures due 2029 (the “2029 Debentures”) for $297.0 million aggregate principal amount of newly issued unsecured 8.50% notes due 2029 (the “New 2029 Notes”). Other than the interest rate, the terms of the New 2029 Notes are substantially similar to the terms of the 2029 Debentures. As of March 31, 2020, only a portion of this exchange was completed including $15.4 million of the 2023 Notes, $26.5 million of the 2024 Notes, and $8.1 million of the 2029 Debentures, which were exchanged for $53.6 million aggregate principal of New 2029 Notes. We treated the transaction as a debt modification, which resulted in a discount on the New 2029 Notes of $3.9 million, inclusive of $0.3 million of fees paid to the Seller in the first quarter of 2020. The remaining $227 million of the exchange was executed in a series of transactions that were completed on April 8, 2020. In addition to the aforementioned transactions, during the quarter ended March 31, 2020, we also repurchased from other parties on the open market $1.3 million of 7.625% notes due 2020, $29.1 million of the 7.875% notes due 2021, and $0.8 million of the 8.875% debentures due 2021 using availability under our ABL Credit Facility. We recorded a gain on debt extinguishment of $0.3 million, offset by approximately $0.3 million in unamortized debt issuance costs in the first quarter of 2020 on the repurchase of these notes. On October 15, 2018, we entered into a $550.0 million senior secured term loan B (the “Term Loan”) pursuant to a credit agreement (the “Term Loan Credit Agreement”). The Term Loan is scheduled to mature on January 15, 2024, at which time the remaining outstanding balance under the Term Loan will be due and payable. Principal payments of $1.4 million are due quarterly. The Term Loan bears interest based on the London Interbank Offered Rate (LIBOR) plus a margin of 5% or a base rate plus a margin of 4%. We entered into an $800.0 million senior secured asset-based revolving credit facility (the “ABL Credit Facility”) on September 29, 2017, pursuant to a credit agreement (the “ABL Credit Agreement”), which replaced our prior $800.0 million senior secured revolving credit facility dated September 30, 2016. The ABL Credit Facility is scheduled to mature on September 29, 2022, at which time all outstanding amounts under the ABL Credit Facility will be due and payable. The amount available to be borrowed under the ABL Credit Facility is equal to the lesser of (a) $800.0 million and (b) a borrowing base formula based on the amount of accounts receivable, inventory, machinery, equipment and, if we were to so elect in the future subject to the satisfaction of certain conditions, fee-owned real estate of ours and our material domestic subsidiaries, subject to certain eligibility criteria and advance rates (collectively, the “Borrowing Base”). The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base formula cannot exceed $200.0 million. Borrowings under the ABL Credit Facility bear interest at a rate dependent on the average quarterly availability and is calculated according to a base rate (except in certain circumstances, based on the prime rate) or a Eurocurrency rate (except in certain circumstances, based on LIBOR) plus an applicable margin. The applicable margin for base rate loans ranges from 0.25% to 0.50% and the applicable margin for Eurocurrency loans ranges from 1.25% to 1.50%. In addition, a fee is payable quarterly on the unused portion of the total commitments. This fee accrues at a rate of either 0.25% or 0.375% depending upon the average usage of the facility. Borrowings under the ABL Credit Facility may be used for working capital and general corporate purposes. During the first quarter of 2020, we increased our borrowings under the ABL Credit Facility to $450 million as a proactive measure in response to the COVID-19 pandemic. Based on our Borrowing Base as of March 31, 2020 and outstanding borrowings, we had approximately $192.9 million borrowing capacity available under the ABL Credit Facility. The weighted average interest rate on borrowings under our was 2.7% and 3.9% during the three months ended March 31, 2020 and 2019, respectively. The ABL Credit Agreement and Term Loan Credit Agreement contain customary affirmative and negative covenants including negative covenants restricting, among other things, our ability to incur debt, make investments, make certain restricted payments (including payments on certain other debt and external dividends), incur liens securing other debt, consummate certain fundamental transactions, enter into transactions with affiliates and consummate asset sales. The ABL Credit Agreement contains a covenant which requires us to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 if availability under the ABL Credit Facility declines below certain levels. The Term Loan Credit Agreement requires that the net cash proceeds of significant asset sales be used to prepay the Term Loan to the extent that the net cash proceeds are not used for reinvestment in assets useful to our business, certain acquisitions and investments, repayment of certain borrowings under our ABL Credit Facility or the funding of debt repayments, redemptions or tenders of certain existing notes maturing prior to the maturity of the Term Loan, in each case, subject to certain restrictions and limitations set forth in the Term Loan Credit Agreement. Interest paid was $23.5 million for the three months ended March 31, 2020 and $38.6 million for the three months ended March 31, 2019. Interest income was $0.5 million for the three months ended March 31, 2020 and $0.8 million for the three months ended March 31, 2019. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 15. Derivatives All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in the Condensed Consolidated Balance Sheets at their respective fair values. Unrealized gains and losses related to derivatives are recorded in the Condensed Consolidated Statements of Operations, or in other comprehensive income (loss), net of applicable income taxes, depending on the purpose for which the derivative is held. At the inception of a hedge transaction, we formally document the hedge relationship and the risk management objective for undertaking the hedge. In addition, we assess both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is also recognized in the Condensed Consolidated Statements of Operations. We are exposed to the impact of foreign currency fluctuations based on our global operations. Foreign currency fluctuations affect the U.S. dollar value of revenues earned and expenses incurred in foreign currencies. We are also exposed to currency risk to the extent we own assets or incur liabilities, or enter into other transactions that are not in the functional currency of the subsidiary in which we operate. We employ different practices to manage these risks, including where appropriate the use of derivative instruments, such as foreign currency forwards. To the extent the gains and losses associated with the fair values of foreign currency derivatives are recognized in the Consolidated Statements of Operations, they are generally offset by gains and losses on underlying payables and receivables. We do not use derivative financial instruments for trading or speculative purposes. The aggregate notional value of the forward contracts at March 31, 2020 and December 31, 2019 was $158.9 million and $179.9 million, respectively. The fair values of foreign currency contracts were determined to be Level 2 under the fair value hierarchy and are valued using market exchange rates. In 2019 and 2020, we entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $400.0 million of our floating-rate Term Loan based on LIBOR to a fixed-rate. The interest rate swaps, with a notional value of $400.0 million, were designated as cash flow hedges against the variability of cash flows associated with our Term Loan scheduled to mature on January 15, 2024, which are attributable to changes in the benchmark interest rate. The fair values of interest rate swaps were determined to be Level 2 under the fair value hierarchy and were developed using the market standard methodology of netting the discounted future variable cash payments and the discounted expected fixed cash receipts. Credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. We evaluate the credit value adjustments of the interest rate swap agreements, which take into account the possibility of counterparty and our own default, on at least a quarterly basis. Our foreign currency contracts and interest rate swaps are subject to master netting agreements that allow us to settle positive and negative positions with the respective counterparties. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. We manage credit risk for our derivative positions on a counterparty-by-counterparty basis, considering the net portfolio exposure with each counterparty, consistent with our risk management strategy for such transactions. Our agreements with each of our counterparties contain a provision where we could be declared in default on our derivative obligations if we either default or, in certain cases, are capable of being declared in default of any of our indebtedness greater than specified thresholds. These agreements also contain a provision where we could be declared in default subsequent to a merger or restructuring type event if the creditworthiness of the resulting entity is materially weakened. As of March 31, 2020 Classification on Consolidated Balance Sheets March 31, 2020 December 31, 2019 Derivative assets Foreign currency contracts: Not designated as hedging instruments Prepaid expenses and other current assets $ 0.7 $ 0.9 Interest rate swap agreements: Designated as cash flow hedges Other noncurrent assets — 1.0 Derivative liabilities Foreign currency contracts: Not designated as hedging instruments Accrued liabilities and other $ 2.2 $ 0.1 Interest rate swap agreements: Designated as cash flow hedges Accrued liabilities and other 4.0 — Designated as cash flow hedges Other noncurrent liabilities 10.7 — The pre-tax losses (gains) recognized on derivative financial instruments in the Condensed Three months ended Classification of Loss (Gain) Recognized in the Consolidated Statements of Operations March 31, 2020 March 31, 2019 Derivatives not designated as hedges Foreign currency contracts Selling, general and administrative expenses $ 1.2 $ (3.7 ) Derivatives designated as cash flow hedges Interest rate swap agreements Interest expense, net (0.2 ) — The pre-tax losses recognized on derivative financial instruments in the Condensed Three months ended March 31, 2020 March 31, 2019 Derivatives designated as cash flow hedges Interest rate swap agreements $ 15.5 $ — |
Dispositions and Acquisition
Dispositions and Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Dispositions and Acquisition | 16. Dispositions and Acquisition 2020 Disposition On March 2, 2020, we sold our Logistics Courier business within the Business Services segment for net proceeds of $ 9.7 million, subject to a working capital adjustment. The disposition of this business resulted in a loss of $8.3 million during the three months ended March 31, 2020 , which was recorded in Other operating expense (income) in the Condensed Consolidated Statements of Operations. 2019 Dispositions On October 25, 2019, we completed the sale of substantially all of the Global Document Solutions (“GDS”) business for approximately $47.3 million, subject to a working capital adjustment. GDS primarily provides statements and print management services in Europe. The disposition resulted in a loss of $0.9 million during 2019, which was recorded in Other operating expense (income) in the Consolidated Statements of Operations. On May 8 , 2019, we sold the R&D business within the Business Services segment for net proceeds of $ On March 31, 2019, our subsidiary, RR Donnelley Editora e Grafica Ltda. (“RRD Brazil”), filed for bankruptcy liquidation in bankruptcy court in Brazil. The bankruptcy petition was approved by the court shortly thereafter and a bankruptcy trustee was appointed. As a result of the bankruptcy liquidation, we recorded a gain of $4.0 million in Other operating expense (income) during 2019, primarily reflecting the reclassification of cumulative currency translation adjustments into earnings and ongoing expenses associated with the bankruptcy proceedings. Subsequent to March 31, 2019, the operating results of RRD Brazil are no longer included in our consolidated results of operations except for legal fees associated with the bankruptcy proceedings. The operations of RRD Brazil had been included in the Business Services segment. 2019 Acquisition On August 1, 2019, we completed an acquisition within the Business Services segment for a purchase price of $14.6 million consisting of $3.0 million in cash paid at closing, a $3.0 million note paid in January 2020 and $8.6 million in contingent consideration based on the future performance of the acquired business. The cost of the acquisition is primarily allocated to intangible assets related to client relationships based on the fair value at the acquisition date. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 17. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments. Under the new guidance, entities are required to measure expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable forecasts. ASU 2016-13 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We established a cross-functional implementation team to analyze the effect of Topic 326. The analysis included identifying pools of receivables, developing and assessing estimation methodologies, policy elections, and evaluating our business processes and internal controls to meet the accounting, reporting and disclosure requirements. On January 1, 2020, we adopted and applied Topic 326 using the modified retrospective method. The cumulative adjustment to retained earnings was $0.3 million. Accounting Pronouncements Issued and Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, which provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (LIBOR). This new standard was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. We are currently evaluating the impact of ASU 2020-04 on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12 “Simplifying the Accounting for Income Taxes (Topic 740)” (“ASU 2019-12”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification (“ASC”) 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, however early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), which removes certain disclosures that are no longer cost beneficial and also includes additional disclosures to improve the overall usefulness of the disclosure requirements to financial statement users. ASU 2018-14 will be effective for public entities for fiscal years beginning after December 15, 2020, however early adoption is permitted. We are currently evaluating the impact of ASU 2018-14 on the consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2020 and December 31, 2019 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 450.7 $ 190.8 Restricted cash - current (a) 33.0 32.9 Restricted cash - noncurrent (b) 0.1 0.1 Total cash, cash equivalents and restricted cash $ 483.8 $ 223.8 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets |
Allowance for Credit Losses | Allowance for credit losses We recognize an allowance for credit losses for financial assets carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on credit losses expected to arise over the life of the asset’s contractual term, which includes consideration of prepayments. Assets are written off when we determine that such financial assets are deemed uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously written off, not to exceed the aggregate of the amount previously written off, are included in determining the necessary reserve at the balance sheet date. We pool financial assets based on similar risk characteristics to estimate expected credit losses. We estimate expected credit losses on financial assets individually when those assets do not share similar risk characteristics. We closely monitor our accounts receivable including timely account reconciliations, detailed reviews of past due accounts, updated credit limits, and monthly analysis of the adequacy of our reserve for credit losses. We utilize a loss rate approach to determine lifetime expected credit losses for our financial assets. This method is used for calculating an estimate of losses based primarily on our historical loss experience. In determining loss rates, we evaluate information related to historical losses, adjusted for current conditions and further adjusted for the period of time that we can reasonably forecast. We have concluded that we can reasonably support a forecast period for the contractual life of our financial assets. Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider the following: the customer or vendor’s creditworthiness, changes in our policy and procedures to establish customer credit limits, changes in the payment terms of receivables, existence and effect of any concentration of credit and changes in the level of such concentrations, and the effects of other external forces such as the current and forecasted direction of the economic and business environment. We have considered the current and expected economic and market conditions as a result of COVID-19 in determining credit loss expense for the period ended March 31, 2020. The allowance for credit losses as of December 31, 2019 and March 31, 2020, was as follows: Beginning Balance December 31, 2019 Additional Allowance Recognized Due to Adoption of Topic ASC326 Credit Loss Expense for the period Write offs During the Period Ending Balance March 31, 2020 Trade receivables $ 20.5 0.2 4.3 (1.2 ) $ 23.8 Notes receivables 0.1 — — — 0.1 Rebates from vendors — 0.1 0.1 — 0.2 Recoveries in the quarter ended March 31, 2020 were immaterial. |
Revenue Recognition | Disaggregation of Revenue The following table presents net sales disaggregated by products and services: Three Months Ended March 31, 2020 2019 Products Commercial print $ 363.4 $ 422.4 Direct marketing 182.8 148.5 Statements 126.9 149.5 Labels 121.6 120.5 Packaging 115.1 139.5 Digital print and fulfillment 113.6 109.6 Supply chain management 69.7 78.5 Forms 52.4 62.4 Total products net sales $ 1,145.5 $ 1,230.9 Services Logistics $ 195.2 $ 201.7 Business process outsourcing 41.4 61.8 Digital and creative solutions 27.4 27.5 Total services net sales $ 264.0 $ 291.0 Total net sales $ 1,409.5 $ 1,521.9 Variable Consideration Certain clients may receive volume-based rebates or early payment discounts, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be earned by our clients and reduce revenue accordingly. We do not expect significant changes to estimates of variable consideration. Given the nature of our products and the history of returns, product returns are not significant. The following table provides information about contract assets and liabilities from contracts with clients: Contract Assets Contract Liabilities Short-Term Short-Term Long-Term Balance at December 31, 2019 $ 2.0 $ 18.9 $ 0.2 Balance at March 31, 2020 3.7 13.5 0.2 Contract liabilities primarily relate to client advances received prior to completion of performance obligations. Reductions in contract liabilities are a result of our completion of performance obligations. Revenue recognized during the three months ended March 31, 2020 from amounts included in contract liabilities at the beginning of the period was approximately $13.6 million. During the three months ended March 31, 2020, we reclassified $2.0 million of contract assets to receivables as a result of the completion of the performance obligation and the right to the consideration becoming unconditional. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2020 and December 31, 2019 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 450.7 $ 190.8 Restricted cash - current (a) 33.0 32.9 Restricted cash - noncurrent (b) 0.1 0.1 Total cash, cash equivalents and restricted cash $ 483.8 $ 223.8 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets |
Allowance for Credit Losses | The allowance for credit losses as of December 31, 2019 and March 31, 2020, was as follows: Beginning Balance December 31, 2019 Additional Allowance Recognized Due to Adoption of Topic ASC326 Credit Loss Expense for the period Write offs During the Period Ending Balance March 31, 2020 Trade receivables $ 20.5 0.2 4.3 (1.2 ) $ 23.8 Notes receivables 0.1 — — — 0.1 Rebates from vendors — 0.1 0.1 — 0.2 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales Disaggregated by Products and Services | The following table presents net sales disaggregated by products and services: Three Months Ended March 31, 2020 2019 Products Commercial print $ 363.4 $ 422.4 Direct marketing 182.8 148.5 Statements 126.9 149.5 Labels 121.6 120.5 Packaging 115.1 139.5 Digital print and fulfillment 113.6 109.6 Supply chain management 69.7 78.5 Forms 52.4 62.4 Total products net sales $ 1,145.5 $ 1,230.9 Services Logistics $ 195.2 $ 201.7 Business process outsourcing 41.4 61.8 Digital and creative solutions 27.4 27.5 Total services net sales $ 264.0 $ 291.0 Total net sales $ 1,409.5 $ 1,521.9 |
Contract Assets and Liabilities from Contracts with Clients | The following table provides information about contract assets and liabilities from contracts with clients: Contract Assets Contract Liabilities Short-Term Short-Term Long-Term Balance at December 31, 2019 $ 2.0 $ 18.9 $ 0.2 Balance at March 31, 2020 3.7 13.5 0.2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Raw materials and manufacturing supplies $ 140.5 $ 139.4 Work in process 57.1 64.6 Finished goods 121.9 116.4 LIFO reserve (18.8 ) (18.6 ) Total inventories $ 300.7 $ 301.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Land $ 47.2 $ 47.8 Buildings 375.3 379.9 Machinery and equipment 1,683.1 1,704.7 2,105.6 2,132.4 Less: Accumulated depreciation (1,629.8 ) (1,632.4 ) Total property, plant and equipment-net $ 475.8 $ 500.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill by Segment | The carrying amount of goodwill at March 31, 2020 and December 31, 2019 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2019 Goodwill $ 2,210.9 $ 519.5 $ 2,730.4 Accumulated impairment losses (2,018.5 ) (254.1 ) (2,272.6 ) Total 192.4 265.4 457.8 Impairment (20.6 ) — (20.6 ) Disposition (3.9 ) — (3.9 ) Foreign exchange (0.8 ) — (0.8 ) Net book value as of March 31, 2020 Goodwill 2,180.0 519.5 2,699.5 Accumulated impairment losses (2,012.9 ) (254.1 ) (2,267.0 ) Total $ 167.1 $ 265.4 $ 432.5 |
Components of Other Intangible Assets | The components of other intangible assets at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 430.5 $ (352.4 ) $ 78.1 $ 433.9 $ (350.0 ) $ 83.9 Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Trademarks, licenses and agreements 24.4 (24.3 ) 0.1 24.6 (24.5 ) 0.1 Trade names 31.7 (16.6 ) 15.1 31.8 (16.1 ) 15.7 Total other intangible assets $ 488.6 $ (395.3 ) $ 93.3 $ 492.3 $ (392.6 ) $ 99.7 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring, Impairment and Other Expenses (Income) | For the three months ended March 31, 2020 and 2019, we recorded the following net restructuring, impairment and other expenses (income): Three Months Ended March 31, 2020 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 5.8 $ 1.1 $ 0.6 $ 18.9 $ 26.4 Marketing Solutions 0.4 — 0.1 — 0.5 Corporate 1.9 3.1 — — 5.0 Total $ 8.1 $ 4.2 $ 0.7 $ 18.9 $ 31.9 Three Months Ended March 31, 2019 Employee Other Restructuring Multi-Employer Pension Plan Terminations Charges Charges Other Total Business Services $ 7.8 $ 4.7 $ 0.6 $ 0.1 $ 13.2 Marketing Solutions 0.1 — 0.1 — 0.2 Corporate 0.2 3.5 — — 3.7 Total $ 8.1 $ 8.2 $ 0.7 $ 0.1 $ 17.1 |
Schedule of Changes in the Restructuring and MEPP Reserves | Restructuring and MEPP reserves as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Restructuring Foreign December 31, and Other Exchange and Cash March 31, 2019 Charges Other Paid 2020 Employee terminations $ 3.4 $ 8.1 $ — $ (6.2 ) $ 5.3 MEPP withdrawal obligations 40.6 0.7 — (1.7 ) 39.6 Other 8.6 4.2 (0.7 ) (3.9 ) 8.2 Total $ 52.6 $ 13.0 $ (0.7 ) $ (11.8 ) $ 53.1 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income | Components of net pension and other postretirement benefits plan (“OPEB”) income for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Pension income: Service cost $ 0.3 $ 0.2 Interest cost 6.9 8.4 Expected return on plan assets (10.2 ) (11.6 ) Amortization, net 2.5 1.5 Net pension income $ (0.5 ) $ (1.5 ) OPEB income: Interest cost 1.8 2.6 Expected return on plan assets (3.2 ) (3.3 ) Amortization, net (1.5 ) (1.8 ) Net OPEB income $ (2.9 ) $ (2.5 ) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Equity Activity | Our equity as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2019 $ 0.9 $ 3,348.0 $ (1,219.6 ) $ (2,336.8 ) $ (176.2 ) $ (383.7 ) $ 13.4 $ (370.3 ) Net (loss) income (13.0 ) (13.0 ) 0.1 (12.9 ) Other comprehensive loss (31.0 ) (31.0 ) (0.2 ) (31.2 ) Share-based compensation 1.4 1.4 1.4 Issuance of share-based awards, net of withholdings and other (82.3 ) 81.8 (0.5 ) (0.5 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-03 (0.3 ) (0.3 ) (0.3 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2020 $ 0.9 $ 3,267.1 $ (1,137.8 ) $ (2,352.2 ) $ (207.2 ) $ (429.2 ) $ 12.6 $ (416.6 ) Our equity as of December 31, 2018 and March 31, 2019, and changes during three months ended March 31, 2019, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2018 $ 0.9 $ 3,404.0 $ (1,285.5 ) $ (2,225.7 ) $ (153.8 ) $ (260.1 ) $ 14.7 $ (245.4 ) Net (loss) income (8.8 ) (8.8 ) 0.3 (8.5 ) Other comprehensive income 1.4 1.4 0.2 1.6 Share-based compensation 3.4 3.4 3.4 Issuance of share-based awards, net of withholdings and other (54.7 ) 53.8 (0.9 ) (0.9 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-02, net of tax 2.6 2.6 2.6 Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2019 $ 0.9 $ 3,352.7 $ (1,231.7 ) $ (2,234.0 ) $ (152.4 ) $ (264.5 ) $ 14.5 $ (250.0 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Net loss per share attributable to RRD common stockholders: Basic $ (0.18 ) $ (0.12 ) Diluted $ (0.18 ) $ (0.12 ) Numerator: Net loss attributable to RRD common stockholders $ (13.0 ) $ (8.8 ) Denominator: Basic weighted average number of common shares outstanding 71.6 70.8 Dilutive options and awards — — Diluted weighted average number of common shares outstanding 71.6 70.8 Weighted average number of anti-dilutive share-based awards: Stock options 0.4 0.6 Restricted stock units 1.0 0.7 Total 1.4 1.3 Dividends declared per common share $ 0.03 $ 0.03 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive (Loss) Income and Income Tax (Benefit) Expense Allocated to Each Component | The components of other comprehensive (loss) income and income tax (benefit) expense allocated to each component for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (20.0 ) $ — $ (20.0 ) Adjustments for net periodic pension and OPEB cost 1.0 0.2 0.8 Change in fair value of derivatives (15.7 ) (3.7 ) (12.0 ) Other comprehensive loss $ (34.7 ) $ (3.5 ) $ (31.2 ) Three Months Ended March 31, 2019 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ 1.2 $ — $ 1.2 Adjustments for net periodic pension and OPEB cost (0.3 ) (0.1 ) (0.2 ) Other — (0.6 ) 0.6 Other comprehensive income $ 0.9 $ (0.7 ) $ 1.6 |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income | Accumulated other comprehensive (loss) income by component as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2019 $ 1.0 $ (185.7 ) $ 8.5 $ (176.2 ) Other comprehensive loss before reclassifications (11.8 ) — (19.8 ) (31.6 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) 0.8 — 0.6 Net change in accumulated other comprehensive (loss) income (12.0 ) 0.8 (19.8 ) (31.0 ) Balance at March 31, 2020 $ (11.0 ) $ (184.9 ) $ (11.3 ) $ (207.2 ) Accumulated other comprehensive (loss) income by component as of December 31, 2018 and March 31, 2019, and changes during the three months ended March 31, 2019, were as follows: Pension and OPEB Cost Translation Adjustments Other Total Balance at December 31, 2018 $ (155.2 ) $ 1.4 $ — $ (153.8 ) Other comprehensive income before reclassifications — 5.5 0.6 6.1 Amounts reclassified from accumulated other comprehensive income (0.2 ) (4.5 ) — (4.7 ) Net change in accumulated other comprehensive (loss) income (0.2 ) 1.0 0.6 1.4 Balance at March 31, 2019 $ (155.4 ) $ 2.4 $ 0.6 $ (152.4 ) |
Reclassifications from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, Classification in the Condensed 2020 2019 Consolidated Statements of Operations Translation Adjustments: Net realized gain, before tax $ — $ (4.5 ) Other operating expense (income) Reclassification, net of tax $ — $ (4.5 ) Amortization of pension and OPEB cost: Net actuarial loss $ 1.6 $ 1.5 Investment and other income-net Net prior service credit (0.6 ) (1.8 ) Investment and other income-net Reclassifications before tax 1.0 (0.3 ) Income tax expense (benefit) 0.2 (0.1 ) Reclassification, net of tax 0.8 (0.2 ) Derivatives: Net realized gain $ (0.2 ) $ — Interest expense-net Reclassification, net of tax (0.2 ) — Total reclassifications, net of tax $ 0.6 $ (4.7 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended March 31, 2020 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures March 31, 2020 Business Services $ 1,102.2 $ (16.5 ) $ 1,085.7 $ 19.6 $ 26.0 $ 10.7 $ 2,153.0 Marketing Solutions 330.4 (6.6 ) 323.8 24.9 14.2 1.6 699.6 Total operating segments 1,432.6 (23.1 ) 1,409.5 44.5 40.2 12.3 2,852.6 Corporate — — — (35.7 ) 0.6 5.4 584.9 Total operations $ 1,432.6 $ (23.1 ) $ 1,409.5 $ 8.8 $ 40.8 $ 17.7 $ 3,437.5 Three Months Ended March 31, 2019 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2019 Business Services $ 1,255.9 $ (19.6 ) $ 1,236.3 $ 28.6 $ 29.3 $ 23.5 $ 2,329.7 Marketing Solutions 291.9 (6.3 ) 285.6 8.5 12.1 9.2 748.1 Total operating segments 1,547.8 (25.9 ) 1,521.9 37.1 41.4 32.7 3,077.8 Corporate — — — (13.8 ) 1.3 4.7 252.3 Total operations $ 1,547.8 $ (25.9 ) $ 1,521.9 $ 23.3 $ 42.7 $ 37.4 $ 3,330.1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Borrowings under the ABL Credit Facility $ 450.0 $ 42.0 7.625% notes due June 15, 2020 64.5 65.8 7.875% notes due March 15, 2021 138.1 167.1 8.875% debentures due April 15, 2021 59.5 60.2 7.000% notes due February 15, 2022 133.4 140.0 6.500% notes due November 15, 2023 275.2 290.6 Term Loan due January 15, 2024 (a) 539.2 540.3 6.000% notes due April 1, 2024 251.8 298.3 6.625% debentures due April 15, 2029 149.8 157.9 8.500% notes due April 15, 2029 49.7 — 8.820% debentures due April 15, 2031 69.0 69.0 Unamortized debt issuance costs (11.8 ) (12.8 ) Total debt 2,168.4 1,818.4 Less: current portion 208.1 71.2 Long-term debt $ 1,960.3 $ 1,747.2 (a) As of March 31, 2020 and December 31, 2019, the interest rate on the Term Loan due January 15, 2024 was 6.60% and 6.80%, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Financial Instruments | As of March 31, 2020 Classification on Consolidated Balance Sheets March 31, 2020 December 31, 2019 Derivative assets Foreign currency contracts: Not designated as hedging instruments Prepaid expenses and other current assets $ 0.7 $ 0.9 Interest rate swap agreements: Designated as cash flow hedges Other noncurrent assets — 1.0 Derivative liabilities Foreign currency contracts: Not designated as hedging instruments Accrued liabilities and other $ 2.2 $ 0.1 Interest rate swap agreements: Designated as cash flow hedges Accrued liabilities and other 4.0 — Designated as cash flow hedges Other noncurrent liabilities 10.7 — |
Schedule of Pre-Tax Losses (Gains) Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Operations | The pre-tax losses (gains) recognized on derivative financial instruments in the Condensed Three months ended Classification of Loss (Gain) Recognized in the Consolidated Statements of Operations March 31, 2020 March 31, 2019 Derivatives not designated as hedges Foreign currency contracts Selling, general and administrative expenses $ 1.2 $ (3.7 ) Derivatives designated as cash flow hedges Interest rate swap agreements Interest expense, net (0.2 ) — |
Schedule of Pre-Tax Losses Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Comprehensive Loss | The pre-tax losses recognized on derivative financial instruments in the Condensed Three months ended March 31, 2020 March 31, 2019 Derivatives designated as cash flow hedges Interest rate swap agreements $ 15.5 $ — |
Basis of Presentation - Reconci
Basis of Presentation - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 450.7 | $ 190.8 | ||
Restricted cash - current | $ 33 | $ 32.9 | ||
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | ||
Restricted cash - noncurrent | $ 0.1 | $ 0.1 | ||
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||
Total cash, cash equivalents and restricted cash | $ 483.8 | $ 223.8 | $ 312.8 | $ 403.6 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Cash payments for income taxes | $ 8.5 | $ 26.4 | |
Cash refunds for income taxes | 2.4 | $ 0.7 | |
Prepaid Expenses and Other Current Assets | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Income taxes receivable | $ 15.4 | $ 12 |
Basis of Presentation - Allowan
Basis of Presentation - Allowance for Credit Losses (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Trade Receivables | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Beginning Balance December 31, 2019 | $ 20.5 |
Credit Loss Expense for the period | 4.3 |
Write offs During the Period | (1.2) |
Ending Balance March 31, 2020 | 23.8 |
Trade Receivables | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Additional Allowance Recognized Due to Adoption of Topic ASC326 | 0.2 |
Notes Receivables | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Beginning Balance December 31, 2019 | 0.1 |
Ending Balance March 31, 2020 | 0.1 |
Rebates from Vendors | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Credit Loss Expense for the period | 0.1 |
Ending Balance March 31, 2020 | 0.2 |
Rebates from Vendors | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Additional Allowance Recognized Due to Adoption of Topic ASC326 | $ 0.1 |
Revenue Recognition - Net Sales
Revenue Recognition - Net Sales Disaggregated by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total net sales | $ 1,409.5 | $ 1,521.9 |
Commercial Print | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 363.4 | 422.4 |
Direct Marketing | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 182.8 | 148.5 |
Statements | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 126.9 | 149.5 |
Labels | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 121.6 | 120.5 |
Packaging | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 115.1 | 139.5 |
Digital Print and Fulfillment | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 113.6 | 109.6 |
Supply Chain Management | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 69.7 | 78.5 |
Forms | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 52.4 | 62.4 |
Products | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 1,145.5 | 1,230.9 |
Logistics | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 195.2 | 201.7 |
Business Process Outsourcing | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 41.4 | 61.8 |
Digital and Creative Solutions | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 27.4 | 27.5 |
Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | $ 264 | $ 291 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities from Contracts with Clients (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract Assets, Short-Term | $ 3.7 | $ 2 |
Contract Liabilities, Short-Term | 13.5 | 18.9 |
Contract Liabilities, Long-Term | $ 0.2 | $ 0.2 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - Accounting Standards Update 2014-09 $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognized from deferred revenue | $ 13.6 |
Contract asset reclassified to receivables | $ 2 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 140.5 | $ 139.4 |
Work in process | 57.1 | 64.6 |
Finished goods | 121.9 | 116.4 |
LIFO reserve | (18.8) | (18.6) |
Total inventories | $ 300.7 | $ 301.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Land | $ 47.2 | $ 47.8 |
Buildings | 375.3 | 379.9 |
Machinery and equipment | 1,683.1 | 1,704.7 |
Property, plant and equipment, gross | 2,105.6 | 2,132.4 |
Less: Accumulated depreciation | (1,629.8) | (1,632.4) |
Total property, plant and equipment-net | $ 475.8 | $ 500 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 28.2 | $ 28.3 |
Building and related land sales, non-refundable deposit received | 98.2 | |
Gross proceeds expected from sale including non-refundable deposits | $ 250 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Goodwill gross | $ 2,699.5 | $ 2,730.4 |
Accumulated impairment losses | (2,267) | (2,272.6) |
Goodwill | 432.5 | 457.8 |
Impairment | (20.6) | |
Disposition | (3.9) | |
Foreign exchange | (0.8) | |
Business Services | ||
Goodwill [Line Items] | ||
Goodwill gross | 2,180 | 2,210.9 |
Accumulated impairment losses | (2,012.9) | (2,018.5) |
Goodwill | 167.1 | 192.4 |
Impairment | (20.6) | |
Disposition | (3.9) | |
Foreign exchange | (0.8) | |
Marketing Solutions | ||
Goodwill [Line Items] | ||
Goodwill gross | 519.5 | 519.5 |
Accumulated impairment losses | (254.1) | (254.1) |
Goodwill | $ 265.4 | $ 265.4 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment charge | $ 20.6 | |
Amortization expense for other intangible assets | $ 5.3 | $ 6.4 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | $ 488.6 | $ 492.3 |
Accumulated Amortization, total other intangible assets | (395.3) | (392.6) |
Net Book Value, total other intangible assets | 93.3 | 99.7 |
Client Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 430.5 | 433.9 |
Accumulated Amortization, total other intangible assets | (352.4) | (350) |
Net Book Value, total other intangible assets | 78.1 | 83.9 |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 2 | 2 |
Accumulated Amortization, total other intangible assets | (2) | (2) |
Trademarks, Licenses and Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 24.4 | 24.6 |
Accumulated Amortization, total other intangible assets | (24.3) | (24.5) |
Net Book Value, total other intangible assets | 0.1 | 0.1 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 31.7 | 31.8 |
Accumulated Amortization, total other intangible assets | (16.6) | (16.1) |
Net Book Value, total other intangible assets | $ 15.1 | $ 15.7 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other - Schedule of Net Restructuring, Impairment and Other Expenses (Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | $ 8.1 | $ 8.1 |
Other Restructuring Charges | 4.2 | 8.2 |
Multi-Employer Pension Plan Charges | 0.7 | 0.7 |
Impairment and Other | 18.9 | 0.1 |
Total | 31.9 | 17.1 |
Total Operating Segments | Business Services | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 5.8 | 7.8 |
Other Restructuring Charges | 1.1 | 4.7 |
Multi-Employer Pension Plan Charges | 0.6 | 0.6 |
Impairment and Other | 18.9 | 0.1 |
Total | 26.4 | 13.2 |
Total Operating Segments | Marketing Solutions | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 0.4 | 0.1 |
Other Restructuring Charges | 0 | |
Multi-Employer Pension Plan Charges | 0.1 | 0.1 |
Impairment and Other | 0 | |
Total | 0.5 | 0.2 |
Corporate | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 1.9 | 0.2 |
Other Restructuring Charges | 3.1 | 3.5 |
Multi-Employer Pension Plan Charges | 0 | |
Impairment and Other | 0 | |
Total | $ 5 | $ 3.7 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||
Employee termination costs | $ 8.1 | $ 8.1 |
Other restructuring charges | 4.2 | 8.2 |
Gain on sale of previously impaired assets | 1.7 | |
Multi-employer pension plan charges | 0.7 | 0.7 |
Goodwill impairment charge | 20.6 | |
Facility Closing | ||
Restructuring Cost And Reserve [Line Items] | ||
Impairment of other long lived assets | $ 0.1 | |
Business Services | ||
Restructuring Cost And Reserve [Line Items] | ||
Goodwill impairment charge | $ 20.6 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other - Schedule of Changes in the Restructuring and MEPP Reserves (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | $ 52.6 |
Restructuring and Other Charges | 13 |
Foreign Exchange and Other | (0.7) |
Cash Paid | (11.8) |
Balance at the end | 53.1 |
Employee terminations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 3.4 |
Restructuring and Other Charges | 8.1 |
Foreign Exchange and Other | 0 |
Cash Paid | (6.2) |
Balance at the end | 5.3 |
Other | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 8.6 |
Restructuring and Other Charges | 4.2 |
Foreign Exchange and Other | (0.7) |
Cash Paid | (3.9) |
Balance at the end | 8.2 |
MEPP withdrawal obligations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 40.6 |
Restructuring and Other Charges | 0.7 |
Foreign Exchange and Other | 0 |
Cash Paid | (1.7) |
Balance at the end | $ 39.6 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other - Restructuring and MEPP Reserves - Narrative (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Restructuring Cost And Reserve [Line Items] | ||
Current restructuring reserve (included in accrued liabilities and other) | $ 16.4 | |
Noncurrent restructuring reserve (included in noncurrent liabilities) | 36.7 | |
Accrued liabilities and other | 302.2 | $ 334.2 |
Other noncurrent liabilities | 236.4 | $ 234.8 |
MEPP withdrawal obligations related to facility closures | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued liabilities and other | 6.5 | |
Other noncurrent liabilities | $ 33.1 |
Retirement Plans - Components o
Retirement Plans - Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.3 | $ 0.2 |
Interest cost | 6.9 | 8.4 |
Expected return on plan assets | (10.2) | (11.6) |
Amortization, net | 2.5 | 1.5 |
Net pension income | (0.5) | (1.5) |
OPEB income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1.8 | 2.6 |
Expected return on plan assets | (3.2) | (3.3) |
Amortization, net | (1.5) | (1.8) |
Net pension income | $ (2.9) | $ (2.5) |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Contribution to retirement plans | $ 4 | $ 2 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 1.4 | $ 3.4 | |
Restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.8 | ||
Grant date fair value | $ 1.61 | ||
Graded vesting period | 3 years | ||
Dividend payable | $ 0 | $ 0 | |
Performance share units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.8 | ||
Grant date fair value | $ 1.61 | ||
Cliff vesting period | 34 months | ||
Phantom restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 1.5 | ||
Grant date share price | $ 1.88 | $ 1.88 | |
Payment description | payable in three equal installments over a period of three years after the grant date | ||
Payment term | 3 years | ||
Phantom performance stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 1.5 | ||
Cliff vesting period | 34 months | ||
Grant date share price | $ 1.88 | $ 1.88 | |
Phantom stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend payable | $ 0 | $ 0 |
Equity - Schedule of Equity Act
Equity - Schedule of Equity Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Line Items] | ||
Beginning Balance | $ (370.3) | $ (245.4) |
Net (loss) income | (12.9) | (8.5) |
Other comprehensive (loss) income | (31.2) | 1.6 |
Share-based compensation | 1.4 | 3.4 |
Issuance of share-based awards, net of withholdings and other | (0.5) | (0.9) |
Cash dividends paid | (2.1) | (2.1) |
Distributions to noncontrolling interests | (0.7) | (0.7) |
Ending Balance | (416.6) | (250) |
ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | (0.3) | |
ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 2.6 | |
Common Stock | ||
Equity [Line Items] | ||
Beginning Balance | 0.9 | 0.9 |
Net (loss) income | 0 | 0 |
Other comprehensive (loss) income | 0 | 0 |
Share-based compensation | 0 | 0 |
Issuance of share-based awards, net of withholdings and other | 0 | 0 |
Cash dividends paid | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | 0.9 | 0.9 |
Common Stock | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Common Stock | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Additional Paid-in Capital | ||
Equity [Line Items] | ||
Beginning Balance | 3,348 | 3,404 |
Net (loss) income | 0 | 0 |
Other comprehensive (loss) income | 0 | 0 |
Share-based compensation | 1.4 | 3.4 |
Issuance of share-based awards, net of withholdings and other | (82.3) | (54.7) |
Cash dividends paid | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | 3,267.1 | 3,352.7 |
Additional Paid-in Capital | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Additional Paid-in Capital | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Treasury Stock | ||
Equity [Line Items] | ||
Beginning Balance | (1,219.6) | (1,285.5) |
Net (loss) income | 0 | 0 |
Other comprehensive (loss) income | 0 | 0 |
Share-based compensation | 0 | 0 |
Issuance of share-based awards, net of withholdings and other | 81.8 | 53.8 |
Cash dividends paid | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | (1,137.8) | (1,231.7) |
Treasury Stock | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Treasury Stock | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Accumulated Deficit | ||
Equity [Line Items] | ||
Beginning Balance | (2,336.8) | (2,225.7) |
Net (loss) income | (13) | (8.8) |
Other comprehensive (loss) income | 0 | 0 |
Share-based compensation | 0 | 0 |
Issuance of share-based awards, net of withholdings and other | 0 | 0 |
Cash dividends paid | (2.1) | (2.1) |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | (2,352.2) | (2,234) |
Accumulated Deficit | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | (0.3) | |
Accumulated Deficit | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 2.6 | |
Accumulated Other Comprehensive Loss | ||
Equity [Line Items] | ||
Beginning Balance | (176.2) | (153.8) |
Net (loss) income | 0 | 0 |
Other comprehensive (loss) income | (31) | 1.4 |
Share-based compensation | 0 | 0 |
Issuance of share-based awards, net of withholdings and other | 0 | 0 |
Cash dividends paid | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | (207.2) | (152.4) |
Accumulated Other Comprehensive Loss | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
Accumulated Other Comprehensive Loss | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 0 | |
RRD Stockholders' Equity | ||
Equity [Line Items] | ||
Beginning Balance | (383.7) | (260.1) |
Net (loss) income | (13) | (8.8) |
Other comprehensive (loss) income | (31) | 1.4 |
Share-based compensation | 1.4 | 3.4 |
Issuance of share-based awards, net of withholdings and other | (0.5) | (0.9) |
Cash dividends paid | (2.1) | (2.1) |
Distributions to noncontrolling interests | 0 | 0 |
Ending Balance | (429.2) | (264.5) |
RRD Stockholders' Equity | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | (0.3) | |
RRD Stockholders' Equity | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | 2.6 | |
Noncontrolling Interests | ||
Equity [Line Items] | ||
Beginning Balance | 13.4 | 14.7 |
Net (loss) income | 0.1 | 0.3 |
Other comprehensive (loss) income | (0.2) | 0.2 |
Share-based compensation | 0 | 0 |
Issuance of share-based awards, net of withholdings and other | 0 | 0 |
Cash dividends paid | 0 | 0 |
Distributions to noncontrolling interests | (0.7) | (0.7) |
Ending Balance | 12.6 | 14.5 |
Noncontrolling Interests | ASU 2016-03 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | $ 0 | |
Noncontrolling Interests | ASU 2016-02 | ||
Equity [Line Items] | ||
Cumulative impact of adopting ASU, net of tax | $ 0 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Treasury stock, shares acquired | 0 | 0 |
Earnings per Share - Earnings p
Earnings per Share - Earnings per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net loss per share attributable to RRD common stockholders: | ||
Basic | $ (0.18) | $ (0.12) |
Diluted | $ (0.18) | $ (0.12) |
Net loss attributable to RRD common stockholders | $ (13) | $ (8.8) |
Basic weighted average number of common shares outstanding | 71.6 | 70.8 |
Diluted weighted average number of common shares outstanding | 71.6 | 70.8 |
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 1.4 | 1.3 |
Dividends declared per common share | $ 0.03 | $ 0.03 |
Stock options | ||
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.4 | 0.6 |
Restricted stock units | ||
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 1 | 0.7 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Schedule of Components of Other Comprehensive (Loss) Income and Income Tax (Benefit) Expense Allocated to Each Component (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | $ (34.7) | $ 0.9 |
Other comprehensive (loss) income, Income Tax | (3.5) | (0.7) |
Other comprehensive (loss) income | (31.2) | 1.6 |
Translation adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | (20) | 1.2 |
Other comprehensive (loss) income | (20) | 1.2 |
Adjustments for net periodic pension and OPEB cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | 1 | (0.3) |
Other comprehensive (loss) income, Income Tax | 0.2 | (0.1) |
Other comprehensive (loss) income | 0.8 | (0.2) |
Changes in Fair Value of Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | (15.7) | |
Other comprehensive (loss) income, Income Tax | (3.7) | |
Other comprehensive (loss) income | $ (12) | |
Other | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Income Tax | (0.6) | |
Other comprehensive (loss) income | $ 0.6 |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Schedule of Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (370.3) | $ (245.4) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.6 | (4.7) |
Other comprehensive (loss) income | (31.2) | 1.6 |
Ending Balance | (416.6) | (250) |
Changes in Fair Value of Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 1 | |
Other comprehensive (loss) income before reclassifications | (11.8) | |
Amounts reclassified from accumulated other comprehensive (loss) income | (0.2) | |
Other comprehensive (loss) income | (12) | |
Ending Balance | (11) | |
Pension and OPEB Cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (185.7) | (155.2) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.8 | (0.2) |
Other comprehensive (loss) income | 0.8 | (0.2) |
Ending Balance | (184.9) | (155.4) |
Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 8.5 | 1.4 |
Other comprehensive (loss) income before reclassifications | (19.8) | 5.5 |
Amounts reclassified from accumulated other comprehensive (loss) income | (4.5) | |
Other comprehensive (loss) income | (19.8) | 1 |
Ending Balance | (11.3) | 2.4 |
Other | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income before reclassifications | 0.6 | |
Other comprehensive (loss) income | 0.6 | |
Ending Balance | 0.6 | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (176.2) | (153.8) |
Other comprehensive (loss) income before reclassifications | (31.6) | 6.1 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.6 | (4.7) |
Other comprehensive (loss) income | (31) | 1.4 |
Ending Balance | $ (207.2) | $ (152.4) |
Other Comprehensive (Loss) In_5
Other Comprehensive (Loss) Income - Schedule of Reclassification From Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification, net of tax | $ 0.6 | $ (4.7) |
Other operating expense (income) | 13.2 | (4.4) |
Interest expense-net | (33.9) | (40.1) |
Translation Adjustments | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification, net of tax | (4.5) | |
Translation Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Other operating expense (income) | (4.5) | |
Net Actuarial Loss | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Investment and other income-net | 1.6 | 1.5 |
Net Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Investment and other income-net | (0.6) | (1.8) |
Amortization of Pension and OPEB Cost | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | 1 | (0.3) |
Income tax expense (benefit) | 0.2 | (0.1) |
Reclassification, net of tax | 0.8 | $ (0.2) |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification, net of tax | (0.2) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | Net Realized Gain on Derivatives | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense-net | $ (0.2) |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 1,409.5 | $ 1,521.9 | |
Income (Loss) from Operations | 8.8 | 23.3 | |
Depreciation and amortization | 40.8 | 42.7 | |
Capital Expenditures | 17.7 | 37.4 | |
Assets of Operations | 3,437.5 | $ 3,330.1 | |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 40.8 | 42.7 | |
Capital Expenditures | 17.7 | 37.4 | |
Assets of Operations | 3,437.5 | 3,330.1 | |
Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,432.6 | 1,547.8 | |
Income (Loss) from Operations | 44.5 | 37.1 | |
Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 40.2 | 41.4 | |
Capital Expenditures | 12.3 | 32.7 | |
Assets of Operations | 2,852.6 | 3,077.8 | |
Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (23.1) | (25.9) | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income (Loss) from Operations | (35.7) | (13.8) | |
Corporate | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 0.6 | 1.3 | |
Capital Expenditures | 5.4 | 4.7 | |
Assets of Operations | 584.9 | 252.3 | |
Business Services | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,085.7 | 1,236.3 | |
Business Services | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,102.2 | 1,255.9 | |
Income (Loss) from Operations | 19.6 | 28.6 | |
Business Services | Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 26 | 29.3 | |
Capital Expenditures | 10.7 | 23.5 | |
Assets of Operations | 2,153 | 2,329.7 | |
Business Services | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (16.5) | (19.6) | |
Marketing Solutions | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 323.8 | 285.6 | |
Marketing Solutions | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 330.4 | 291.9 | |
Income (Loss) from Operations | 24.9 | 8.5 | |
Marketing Solutions | Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 14.2 | 12.1 | |
Capital Expenditures | 1.6 | 9.2 | |
Assets of Operations | 699.6 | 748.1 | |
Marketing Solutions | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | $ (6.6) | $ (6.3) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Millions | Mar. 31, 2020USD ($)Facility | Dec. 31, 2019USD ($) |
Commitment And Contingencies [Line Items] | ||
Number of sites cited as potentially responsible party | Facility | 3 | |
Number of previously and currently owned sites with potential remediation obligations | Facility | 6 | |
Donnelley Financial Solutions, Inc. | ||
Commitment And Contingencies [Line Items] | ||
Potential contingent obligations | $ | $ 4.8 | $ 5.5 |
LSC Communications, Inc. | ||
Commitment And Contingencies [Line Items] | ||
Potential contingent obligations | $ | $ 72 | $ 78.8 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (11.8) | $ (12.8) | |
Total debt | 2,168.4 | 1,818.4 | |
Less: current portion | 208.1 | 71.2 | |
Long-term debt | 1,960.3 | 1,747.2 | |
ABL Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit Facility/Term Loan | 450 | 42 | |
Term Loan Due January 15, 2024 | |||
Debt Instrument [Line Items] | |||
Credit Facility/Term Loan | [1] | 539.2 | 540.3 |
7.625% Notes Due June 15, 2020 | |||
Debt Instrument [Line Items] | |||
Notes | 64.5 | 65.8 | |
7.875% Notes Due March 15, 2021 | |||
Debt Instrument [Line Items] | |||
Notes | 138.1 | 167.1 | |
8.875% Debentures Due April 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debentures | 59.5 | 60.2 | |
7.000% Notes Due February 15, 2022 | |||
Debt Instrument [Line Items] | |||
Notes | 133.4 | 140 | |
6.500% Notes Due November 15, 2023 | |||
Debt Instrument [Line Items] | |||
Notes | 275.2 | 290.6 | |
6.000% Notes Due April 1, 2024 | |||
Debt Instrument [Line Items] | |||
Notes | 251.8 | 298.3 | |
6.625% Debentures Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Debentures | 149.8 | 157.9 | |
8.500% Notes Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Notes | 49.7 | ||
8.5% Debentures Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Debentures | $ 69 | $ 69 | |
[1] | As of March 31, 2020 and December 31, 2019, the interest rate on the Term Loan due January 15, 2024 was 6.60% and 6.80%, respectively. |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - Term Loan | Oct. 15, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Maturity date | Jan. 15, 2024 | Jan. 15, 2024 | Jan. 15, 2024 |
Interest rate | 6.60% | 6.80% |
Debt - Narrative (Detail)
Debt - Narrative (Detail) | Oct. 15, 2018USD ($) | Sep. 29, 2017USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Apr. 08, 2020USD ($) | Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Amount of difference between fair value and book value | $ 35,900,000 | $ 29,300,000 | ||||||
Gain (loss) on debt extinguishment | 200,000 | |||||||
Unamortized debt issuance costs | 11,800,000 | $ 12,800,000 | ||||||
Interest paid, net of interest capitalized | 23,500,000 | $ 38,600,000 | ||||||
Interest income from investments/other | $ 500,000 | $ 800,000 | ||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.60% | 6.80% | ||||||
Maturity date | Jan. 15, 2024 | Jan. 15, 2024 | Jan. 15, 2024 | |||||
Principal payments | $ 1,400,000 | |||||||
Principal payments term | quarterly | |||||||
Borrowings under credit facility | [1] | $ 539,200,000 | $ 540,300,000 | |||||
Term Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 5.00% | |||||||
Term Loan | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 4.00% | |||||||
ABL Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Sep. 29, 2022 | |||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | $ 800,000,000 | ||||||
Line of credit borrowing capacity description | The amount available to be borrowed under the ABL Credit Facility is equal to the lesser of (a) $800.0 million and (b) a borrowing base formula based on the amount of accounts receivable, inventory, machinery, equipment and, if we were to so elect in the future subject to the satisfaction of certain conditions, fee-owned real estate of ours and our material domestic subsidiaries, subject to certain eligibility criteria and advance rates (collectively, the “Borrowing Base”). The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base formula cannot exceed $200.0 million. | |||||||
Line of Credit Facility, Maximum Borrowing Base Capacity | $ 200,000,000 | |||||||
Borrowings under credit facility | $ 450,000,000 | $ 42,000,000 | ||||||
Borrowing capacity available under credit agreement | $ 192,900,000 | |||||||
Weighted average interest rate on borrowings | 2.70% | 3.90% | ||||||
ABL Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1 | |||||||
ABL Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.25% | |||||||
ABL Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.375% | |||||||
ABL Credit Facility | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.25% | |||||||
ABL Credit Facility | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.50% | |||||||
ABL Credit Facility | Eurocurrency | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | |||||||
ABL Credit Facility | Eurocurrency | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.25% | |||||||
ABL Credit Facility | Eurocurrency | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.50% | |||||||
Refinancing Transactions | ||||||||
Debt Instrument [Line Items] | ||||||||
Gain (loss) on debt extinguishment | $ (3,900,000) | |||||||
Debt instrument, aggregate principal amount exchanged | 277,000,000 | |||||||
Fees paid | 300,000 | |||||||
Refinancing Transactions | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, settled amount in exchange | $ 227,000,000 | |||||||
7.00% Notes Due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of notes purchased | $ 6,600,000 | |||||||
Debt instrument, interest rate | 7.00% | |||||||
Maturity date | Feb. 15, 2022 | |||||||
6.00% Notes Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of notes purchased | $ 20,000,000 | |||||||
Debt instrument, interest rate | 6.00% | |||||||
Maturity date | Apr. 1, 2024 | |||||||
6.00% Notes Due 2024 | Refinancing Transactions | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.00% | |||||||
Maturity date | Apr. 1, 2024 | |||||||
Debt instrument, aggregate principal amount exchanged | $ 177,400,000 | |||||||
Debt instrument, settled amount in exchange | 26,500,000 | |||||||
7.00% Notes Due 2022 and 6.00% Notes Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Gain (loss) on debt extinguishment | $ 200,000 | |||||||
6.50% Notes Due 2023 | Refinancing Transactions | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.50% | |||||||
Maturity date | Nov. 15, 2023 | |||||||
Debt instrument, aggregate principal amount exchanged | $ 54,000,000 | |||||||
Debt instrument, settled amount in exchange | $ 15,400,000 | |||||||
6.625% Debentures Due 2029 | Refinancing Transactions | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.625% | |||||||
Maturity date | Apr. 15, 2029 | |||||||
Debt instrument, aggregate principal amount exchanged | $ 45,600,000 | |||||||
Debt instrument, settled amount in exchange | $ 8,100,000 | |||||||
8.50% Debentures Due 2029 | Refinancing Transactions | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 8.50% | |||||||
Maturity date | Apr. 15, 2029 | |||||||
Debt instrument, settled amount in exchange | $ 53,600,000 | |||||||
Debt instrument, aggregate principal amount | 297,000,000 | |||||||
7.625% Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of notes purchased | $ 1,300,000 | |||||||
Debt instrument, interest rate | 7.625% | |||||||
Maturity date | Jun. 15, 2020 | |||||||
7.875% Notes Due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of notes purchased | $ 29,100,000 | |||||||
Debt instrument, interest rate | 7.875% | |||||||
Maturity date | Mar. 15, 2021 | |||||||
8.875% Debentures due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of notes purchased | $ 800,000 | |||||||
Debt instrument, interest rate | 8.875% | |||||||
Maturity date | Apr. 15, 2021 | |||||||
7.625% Notes Due 2020, 7.875% Notes Due 2021 and 8.875% Debentures due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Gain (loss) on debt extinguishment | $ (300,000) | |||||||
Unamortized debt issuance costs | $ 300,000 | |||||||
Senior Secured Term Loan B | Term Loan Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, aggregate principal amount | $ 550,000,000 | |||||||
[1] | As of March 31, 2020 and December 31, 2019, the interest rate on the Term Loan due January 15, 2024 was 6.60% and 6.80%, respectively. |
Derivatives - Narrative (Detail
Derivatives - Narrative (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 158,900,000 | $ 179,900,000 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 400,000,000 | |
Derivative instrument, interest rate description | LIBOR | |
Derivative instrument, maturity date | Jan. 15, 2024 | |
Designated as Hedging Instrument | Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 400,000,000 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Not Designated as Hedging Instrument | Accrued Liabilities and Other | Foreign Currency Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 2.2 | $ 0.1 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Foreign Currency Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 0.7 | 0.9 |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Accrued Liabilities and Other | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | 4 | |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Other Noncurrent Assets | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | $ 1 | |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Other Noncurrent Liabilities | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 10.7 |
Derivatives - Schedule of Pre-T
Derivatives - Schedule of Pre-Tax Losses (Gains) Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | Selling, General and Administrative Expenses | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain related to derivatives | $ 1.2 | $ (3.7) |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap Agreements | Interest Expense, Net | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain related to derivatives | $ (0.2) |
Derivatives - Schedule of Pre_2
Derivatives - Schedule of Pre-Tax Losses Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Comprehensive Loss (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap Agreements | |
Derivatives Fair Value [Line Items] | |
Pre-tax losses recognized on derivative financial instruments in consolidated statements of comprehensive loss | $ 15.5 |
Dispositions and Acquisition -
Dispositions and Acquisition - Narrative (Detail) - USD ($) $ in Millions | Aug. 01, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 25, 2019 | May 08, 2019 |
RRD Brazil | |||||
Business Acquisition [Line Items] | |||||
Gain (loss) on disposition of business | $ 4 | ||||
Business Services | |||||
Business Acquisition [Line Items] | |||||
Business acquisition date of completion | Aug. 1, 2019 | ||||
Business acquisition purchase price | $ 14.6 | ||||
Business acquisition cash paid | 3 | ||||
Business acquisition note payable | $ 3 | ||||
Business acquisition note payable maturity date. | Jan. 31, 2020 | ||||
Business acquisition contingent consideration | $ 8.6 | ||||
Disposition by Sale | GDS | |||||
Business Acquisition [Line Items] | |||||
Cash on disposition of business | $ 47.3 | ||||
Gain (loss) resulted from disposition of business | (0.9) | ||||
Disposition by Sale | Business Services | |||||
Business Acquisition [Line Items] | |||||
Cash on disposition of business | $ 11.6 | ||||
Gain (loss) on disposition of business | $ 6.1 | ||||
Disposition by Sale | Business Services | Logistics Courier | |||||
Business Acquisition [Line Items] | |||||
Cash on disposition of business | $ 9.7 | ||||
Gain (loss) on disposition of business | $ (8.3) |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Detail) $ in Millions | Jan. 01, 2020USD ($) |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Cumulative adjustment to retained earnings | $ 0.3 |