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Inline XBRL Business Report

Component: (Network and Table)
Network
100000 - Document - Document and Entity Information
(http://www.dfsco.com/20171231/taxonomy/role/DocumentDocumentAndEntityInformation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Document And Entity Information [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2018-02-23
2017-06-30
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K  
  
Amendment Flag
false  
  
Document Period End Date
2017-12-31  
  
Document Fiscal Year Focus
2017  
  
Document Fiscal Period Focus
FY  
  
Trading Symbol
DFIN  
  
Entity Registrant Name
Donnelley Financial Solutions, Inc.  
  
Entity Central Index Key
0001669811  
  
Current Fiscal Year End Date
--12-31  
  
Entity Well-known Seasoned Issuer
No  
  
Entity Current Reporting Status
Yes  
  
Entity Voluntary Filers
No  
  
Entity Filer Category
Large Accelerated Filer  
  
Entity Common Stock, Shares Outstanding
 
33,844,902  
 
Entity Public Float
  
773,142,550  

Component: (Network and Table)
Network
100010 - Statement - Consolidated and Combined Statements of Operations
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedAndCombinedStatementsOfOperations)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Related PartyRelated PartyRelated PartyRelated Party
R.R. Donnelley AffiliatesRelated PartyR.R. Donnelley AffiliatesR.R. Donnelley AffiliatesRelated PartyR.R. Donnelley AffiliatesRelated Party
Services net sales
 
632,100,000  
  
598,600,000  
 
628,600,000  
Products net sales
 
372,800,000  
  
384,900,000  
 
420,900,000  
Total net sales
 
 
1,004,900,000  
 
8,300,000  
 
19,400,000  
 
983,500,000  
 
7,800,000  
 
1,049,500,000  
 
Services cost of sales (exclusive of depreciation and amortization)
19,500,000 1
328,700,000  
 
37,800,000 1
297,100,000  
40,400,000 1
291,900,000  
Products cost of sales (exclusive of depreciation and amortization)
32,300,000 1
240,900,000  
 
57,900,000 1
226,200,000  
68,300,000 1
230,900,000  
Total cost of sales
 
 
621,400,000  
 
 
 
 
 
619,000,000  
 
 
 
631,500,000  
 
Selling, general and administrative expenses (exclusive of depreciation and amortization)
 
232,900,000  
  
209,800,000  
 
199,200,000  
Restructuring, impairment and other charges-net
 
7,100,000  
  
5,400,000  
 
4,400,000  
Depreciation and amortization
 
44,500,000  
  
43,300,000  
 
41,700,000  
Income from operations
 
 
99,000,000  
 
 
 
 
 
106,000,000  
 
 
 
172,700,000  
 
Interest expense-net
 
42,900,000  
  
11,700,000  
 
1,100,000  
Investment and other income-net
 
(100,000) 
  
0  
 
(100,000) 
Earnings before income taxes
 
 
56,200,000  
 
 
 
 
 
94,300,000  
 
 
 
171,700,000  
 
Income tax expense
 
46,500,000  
  
35,200,000  
 
67,400,000  
Net earnings
 
 
9,700,000  
 
 
 
 
 
59,100,000  
 
 
 
104,300,000  
 
Net earnings per share (Note 13):
 
 
 
 
 
 
 
Basic net earnings per share
 
.29  
  
1.81  
 
3.22  
Diluted net earnings per share
 
.29  
  
1.80  
 
3.22  
Weighted average number to common shares outstanding
 
 
 
 
 
 
 
Basic
 
33,100,000  
  
32,600,000  
 
32,400,000  
Diluted
 
33,300,000  
  
32,800,000  
 
32,400,000  
1: Beginning in the quarter ended June 30, 2017, LSC Communications, Inc. (“LSC”) no longer qualified as a related party, therefore the 2017 amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, R.R. Donnelley & Sons Company ("RRD") no longer qualified as a related party, therefore the 2017 amounts disclosed related to RRD are presented through June 30, 2017 only.

Component: (Network and Table)
Network
100020 - Statement - Consolidated and Combined Statements of Comprehensive Income
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedAndCombinedStatementsOfComprehensiveIncome)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Statement Of Income And Comprehensive Income [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net earnings
9,700,000  
59,100,000  
104,300,000  
Other comprehensive income (loss), net of tax:
 
 
 
Translation adjustments
4,400,000  
(100,000) 
(7,500,000) 
Adjustment for net periodic pension and other postretirement benefits plan cost
(700,000) 
7,100,000  
27,500,000  
Other comprehensive income, net of tax
3,700,000  
 
7,000,000  
 
20,000,000  
 
Comprehensive income
13,400,000  
 
66,100,000  
 
124,300,000  
 

Component: (Network and Table)
Network
100030 - Statement - Consolidated Balance Sheets
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedBalanceSheets)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2017-12-31
2016-12-31
Related PartyRelated Party
R.R. Donnelley & Sons CompanyRelated PartyR.R. Donnelley & Sons CompanyRelated Party
ASSETS
 
 
 
 
Cash and cash equivalents
 
52,000,000  
 
36,200,000  
Receivables, less allowances for doubtful accounts of $7.3 in 2017 (2016 - $6.4)
 
165,200,000  
 
156,200,000  
Receivable from RR Donnelley
0 1
 
96,000,000 1
 
Inventories
 
23,300,000  
 
24,100,000  
Prepaid expenses and other current assets
 
29,600,000  
 
17,100,000  
Total current assets
 
 
270,100,000  
 
 
 
329,600,000  
 
Property, plant and equipment-net
 
34,700,000  
 
35,500,000  
Goodwill
 
447,400,000  
 
446,400,000  
Other intangible assets-net
 
39,900,000  
 
54,300,000  
Software-net
 
41,100,000  
 
41,600,000  
Deferred income taxes
 
22,200,000  
 
37,000,000  
Other noncurrent assets
 
38,100,000  
 
34,500,000  
Total assets
 
 
893,500,000  
 
 
 
978,900,000  
 
LIABILITIES
 
 
 
 
Accounts payable
 
67,800,000  
 
85,300,000  
Accrued liabilities
 
119,200,000  
 
100,700,000  
Total current liabilities
 
 
187,000,000  
 
 
 
186,000,000  
 
Long-term debt (Note 12)
 
458,300,000  
 
587,000,000  
Deferred compensation liabilities
 
22,800,000  
 
24,400,000  
Pension and other postretirement benefits plan liabilities
 
52,500,000  
 
56,400,000  
Other noncurrent liabilities
 
23,500,000  
 
14,000,000  
Total liabilities
 
 
744,100,000  
 
 
 
867,800,000  
 
Commitments and Contingencies (Note 9)
 
xsi:nil  
 
xsi:nil  
EQUITY
 
 
 
 
Preferred stock, $0.01 par value Authorized: 1.0 shares; Issued: None
 
0  
 
0  
Common stock, $0.01 par value Authorized: 65.0 shares; Issued: 33.8 shares in 2017 (2016 - 32.6 shares)
 
300,000  
 
300,000  
Treasury stock, at cost: less than 0.1 shares in 2017
 
(900,000) 
  
Additional paid-in-capital
 
205,700,000  
 
179,900,000  
Retained earnings (deficit)
 
8,900,000  
 
(800,000) 
Accumulated other comprehensive loss
 
(64,600,000) 
 
(68,300,000) 
Total equity
 
 
149,400,000  
 
 
 
111,100,000  
 
Total liabilities and equity
 
 
893,500,000  
 
 
 
978,900,000  
 
1: Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.

Component: (Network and Table)
Network
100040 - Statement - Consolidated Balance Sheets (Parenthetical)
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedBalanceSheetsParenthetical)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2017-12-31
2016-12-31
RangeRange
MaximumRangeRange
Receivables, allowance for doubtful accounts
 
7,300,000  
6,400,000  
Preferred stock, par value
 
0.01  
0.01  
Preferred stock, authorized
 
1,000,000  
1,000,000  
Preferred stock, Issued
 
0  
0  
Common stock, par value
 
0.01  
0.01  
Common stock, Authorized
 
65,000,000  
65,000,000  
Common stock, Issued
 
33,800,000  
32,600,000  
Treasury stock, Shares
100,000  
  

Component: (Network and Table)
Network
100050 - Statement - Consolidated and Combined Statements of Cash Flows
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedAndCombinedStatementsOfCashFlows)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Statement Of Cash Flows [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Statement Of Cash Flows [Abstract]
 
 
 
OPERATING ACTIVITIES
 
 
 
Net earnings
9,700,000  
59,100,000  
104,300,000  
Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Depreciation and amortization
44,500,000  
43,300,000  
41,700,000  
Provision for doubtful accounts receivable
3,900,000  
3,100,000  
500,000  
Share-based compensation
6,800,000  
2,500,000  
1,600,000  
Deferred income taxes
12,400,000  
(5,900,000) 
10,200,000  
Changes in uncertain tax positions
(200,000) 
900,000  
300,000  
Gain on investments and other assets - net
200,000  
100,000  
0  
Net pension and other postretirement benefits plan income
(3,300,000) 
(1,000,000) 
0  
Other
2,800,000  
1,000,000  
200,000  
Changes in operating assets and liabilities - net of acquisitions:
 
 
 
Accounts receivable - net
18,000,000  
(43,100,000) 
(10,200,000) 
Inventories
800,000  
(1,900,000) 
200,000  
Prepaid expenses and other current assets
(3,500,000) 
(7,400,000) 
900,000  
Accounts payable
(18,300,000) 
42,300,000  
5,100,000  
Income taxes payable and receivable
5,400,000  
(3,600,000) 
(700,000) 
Accrued liabilities and other
14,400,000  
17,700,000  
(33,200,000) 
Pension and other postretirement benefits plan contributions
(2,200,000) 
(1,100,000) 
0  
Net cash provided by operating activities
91,400,000  
 
106,000,000  
 
120,900,000  
 
INVESTING ACTIVITIES
 
 
 
Capital expenditures
(27,800,000) 
(26,200,000) 
(27,100,000) 
Purchases of investments
(3,400,000) 
(3,500,000) 
(10,000,000) 
Other investing activities
200,000  
400,000  
0  
Net cash used in investing activities
(31,000,000) 
 
(29,300,000) 
 
(37,100,000) 
 
FINANCING ACTIVITIES
 
 
 
Revolving facility borrowings
298,500,000  
0  
0  
Payments on revolving facility borrowings
(298,500,000) 
0  
0  
Payments on long-term debt
(133,000,000) 
(50,000,000) 
0  
Debt issuance costs
(2,100,000) 
(9,300,000) 
0  
Separation-related payment from R.R. Donnelley
68,000,000  
0  
0  
Proceeds from issuance of common stock
18,800,000  
0  
0  
Proceeds from issuance of long-term debt
3,100,000  
348,200,000  
0  
Net change in short-term debt
0  
(8,800,000) 
(24,000,000) 
Payments on note payable with an R.R. Donnelley affiliate
0  
0  
(14,800,000) 
Net transfers to Parent and affiliates
0  
(340,100,000) 
(56,000,000) 
Treasury stock repurchases
(900,000) 
0  
0  
Other financing activities
400,000  
0  
0  
Net cash used in financing activities
(45,700,000) 
 
(60,000,000) 
 
(94,800,000) 
 
Effect of exchange rate on cash and cash equivalents
1,100,000  
4,400,000  
(2,500,000) 
Net increase (decrease) in cash and cash equivalents
15,800,000  
 
21,100,000  
 
(13,500,000) 
 
Cash and cash equivalents at beginning of year
36,200,000  
15,100,000  
28,600,000  
Cash and cash equivalents at end of period
52,000,000  
 
36,200,000  
 
15,100,000  
 
Supplemental non-cash disclosure:
 
 
 
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs
0  
300,000,000  
0  
Settlement of intercompany note payable
0  
29,600,000  
0  
Accrued debt issuance costs
0  
1,500,000  
0  

Component: (Network and Table)
Network
100060 - Statement - Consolidated and Combined Statements of Cash Flows (Parenthetical)
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedAndCombinedStatementsOfCashFlowsParenthetical)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Statement Of Cash Flows [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
Statement Of Cash Flows [Abstract]
 
 
Debt issuance costs
5,500,000  
5,500,000  

Component: (Network and Table)
Network
100070 - Statement - Consolidated and Combined Statements of Equity
(http://www.dfsco.com/20171231/taxonomy/role/StatementConsolidatedAndCombinedStatementsOfEquity)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Equity ComponentsEquity ComponentsEquity Components
Common StockTreasury StockAdditional Paid-in-CapitalNet Parent Company InvestmentRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossEquity ComponentCommon StockTreasury StockAdditional Paid-in-CapitalNet Parent Company InvestmentRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossEquity ComponentCommon StockTreasury StockAdditional Paid-in-CapitalNet Parent Company InvestmentRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossEquity Component
Related Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party Transaction
Related Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party TransactionR.R. Donnelley & Sons CompanyRelated Party Transaction
Balance
300,000  
0  
179,900,000  
0  
(800,000) 
(68,300,000) 
111,100,000  
 
0  
 
0  
 
0  
 
639,500,000  
 
0  
 
(16,000,000) 
 
623,500,000  
 
0  
 
0  
 
0  
 
1,025,200,000  
 
0  
 
(673,700,000) 
 
351,500,000  
Balance (in shares)
32,600,000  
0  
    
32,600,000  
               
0  
 
0  
          
Net earnings
0  
0  
0  
0  
9,700,000  
0  
9,700,000  
 
0  
 
0  
 
0  
 
59,900,000  
 
(800,000) 
 
0  
 
59,100,000  
 
0  
 
0  
 
0  
 
104,300,000  
 
0  
 
0  
 
104,300,000  
Net transfers to R.R. Donnelley
       
0  
 
0  
 
0  
 
(598,800,000) 
 
0  
 
0  
 
(598,800,000) 
 
0  
 
0  
 
0  
 
(53,200,000) 
 
0  
 
0  
 
(53,200,000) 
 
Net transfer of pension plan to R.R. Donnelley
                     
0  
 
0  
 
0  
 
(436,800,000) 
 
0  
 
637,700,000  
 
200,900,000  
 
Separation-related adjustments
0  
0  
200,000  
0  
0  
0  
200,000  
 
0  
 
0  
 
0  
 
78,000,000  
 
0  
 
(59,300,000) 
 
18,700,000  
              
Reclassification of net parent company investment in connection with the Separation
        
0  
 
0  
 
178,600,000  
 
(178,600,000) 
 
0  
 
0  
 
0  
              
Issuance of common stock upon separation
        
300,000  
 
0  
 
0  
 
0  
 
0  
 
0  
 
300,000  
              
Issuance of common stock upon separation (in shares)
        
32,400,000  
                          
Issuance of additional common shares
0  
0  
18,800,000  
0  
0  
0  
18,800,000  
                            
Issuance of additional common shares (in shares)
900,000  
                                  
Share-based compensation
0  
0  
6,800,000  
0  
0  
0  
6,800,000  
 
0  
 
0  
 
1,300,000  
 
0  
 
0  
 
0  
 
1,300,000  
              
Issuance of share-based awards, net of withholdings and other
0  
(900,000) 
0  
0  
0  
0  
(900,000) 
 
0  
 
0  
 
0  
 
0  
 
0  
 
0  
 
0  
              
Issuance of share-based awards, net of withholdings and other (in shares)
300,000  
0  
      
200,000  
                          
Other comprehensive income
0  
0  
0  
0  
0  
3,700,000  
3,700,000  
 
0  
 
0  
 
0  
 
0  
 
0  
 
7,000,000  
 
7,000,000  
 
0  
 
0  
 
0  
 
0  
 
0  
 
20,000,000  
 
20,000,000  
Balance
300,000  
 
(900,000) 
 
205,700,000  
 
0  
 
8,900,000  
 
(64,600,000) 
 
149,400,000  
 
 
 
300,000  
 
 
 
 
 
 
 
179,900,000  
 
 
 
 
 
 
 
(800,000) 
 
 
 
(68,300,000) 
 
 
 
111,100,000  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
639,500,000  
 
 
 
 
 
 
 
(16,000,000) 
 
 
 
623,500,000  
 
Balance (in shares)
33,800,000  
 
0  
 
 
 
 
 
 
 
 
 
33,800,000  
 
 
 
32,600,000  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32,600,000  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Component: (Network and Table)
Network
100080 - Disclosure - Overview and Basis of Presentation
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureOverviewAndBasisOfPresentation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accounting Policies [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accounting Policies [Abstract]
 
Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Description of Business

Donnelley Financial Solutions, Inc. (the “Company” or “Donnelley Financial” ) is a financial communications services company that supports global capital markets compliance and transaction needs for its corporate clients and their advisors (such as law firms and investment bankers) and global investment markets compliance and analytics needs for mutual fund companies, variable annuity providers and broker/dealers. With proprietary technology such as data storage and workflow collaboration tools, deep subject matter expertise and a global footprint, Donnelley Financial produces, manages, stores, distributes, and translates documents and electronic communications in order to deliver timely financial communications to investors and documents in a manner that complies with regulatory commissions.

Donnelley Financial’s Registration Statement on Form 10, as amended, was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 20, 2016. On October 1, 2016, Donnelley Financial became an independent publicly traded company through the distribution by R.R. Donnelley & Sons Company (“RRD”) of approximately 26.2 million shares, or 80.75%, of Donnelley Financial common stock to RRD shareholders (the “Separation”). Holders of RRD common stock received one share of Donnelley Financial common stock for every eight shares of RRD common stock held on September 23, 2016. As part of the Separation, RRD retained approximately 6.2 million shares of Donnelley Financial common stock, or a 19.25% interest in Donnelley Financial. Donnelley Financial’s common stock began regular-way trading under the ticker symbol “DFIN” on the New York Stock Exchange on October 3, 2016.  On October 1, 2016, RRD also completed the previously announced separation of LSC Communications, Inc. (“LSC”), its publishing and retail-centric print services and office products business. On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. As a result, beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party of the Company.

On March 24, 2017, pursuant to the Stockholder and Registration Rights Agreement, dated as of September 30, 2016, by and between the Company and RRD, the Company filed a Registration Statement on Form S-1 to register the offering and sale of shares of the Company’s common stock retained by RRD. The Registration Statement on Form S-1, as amended, was declared effective by the SEC on June 13, 2017. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon the consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. In conjunction with the underwritten public offering, the underwriters exercised their option to purchase approximately 0.9 million of the Company’s shares (the “Option Shares”). The Company received approximately $18.8 million in net proceeds from the sale of the Option Shares, after deducting estimated underwriting discounts and commissions. The proceeds were used to reduce outstanding debt under the Revolving Facility (as defined in Note 12, Debt). Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore amounts disclosed related to RRD are presented through June 30, 2017 only.  

On September 14, 2016, the Company and LSC entered into a Separation and Distribution Agreement with RRD to effect the distribution of the Company’s and LSC’s common stock to RRD’s common stockholders (the “Separation and Distribution Agreement”). This agreement governs the Company’s relationship with RRD and LSC with respect to pre-Separation matters and provides for the allocation of employee benefit, litigation and other liabilities and obligations attributable to periods prior to the Separation. The Separation and Distribution Agreement also includes an agreement that the Company, RRD and LSC will provide each other with appropriate indemnities with respect to liabilities arising out of the businesses being distributed and retained by RRD in the Separation. The Separation and Distribution Agreement also addresses employee compensation and benefit matters.

In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively, for up to 24 months following the Separation. These services include, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization.  

At the time of the Separation, the Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition, premedia and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize financial communication software and services that the Company makes available to all of its clients.

Basis of Presentation

The accompanying consolidated and combined financial statements reflect the consolidated financial position and consolidated results of operations of the Company as an independent, publicly traded company for the periods after the Separation and the combined results of operations for the periods prior to the Separation. Prior to the Separation, the combined financial statements were prepared on a stand-alone basis and were derived from RRD’s consolidated financial statements and accounting records. The consolidated and combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC.

For periods prior to the Separation, the consolidated and combined financial statements include the allocation of certain assets and liabilities that were historically held at the RRD corporate level but which were specifically identifiable or attributable to the Company.  Cash and cash equivalents held by RRD were not allocated to Donnelley Financial unless they were held in a legal entity that was transferred to Donnelley Financial. All intercompany transactions and accounts within Donnelley Financial have been eliminated. All intracompany transactions between RRD and Donnelley Financial are considered to be effectively settled in the consolidated and combined financial statements at the time the transaction is recorded. The total net effect of the settlement of these intracompany transactions is reflected in the consolidated and combined statements of cash flows as a financing activity and in the consolidated and combined statements of equity as net parent company investment. Net parent company investment is primarily impacted by contributions from RRD which are the result of treasury activities and net funding provided by or distributed to RRD.  

Prior to the Separation, the consolidated and combined financial statements include certain expenses of RRD which were allocated to Donnelley Financial for certain functions, including general corporate expenses related to information technology, finance, legal, human resources, internal audit, treasury, tax, investor relations and executive oversight.  These expenses were allocated to the Company on the basis of direct usage, when available, with the remainder allocated on the pro rata basis of revenue, employee headcount, or other measures. We consider the expense methodology and results to be reasonable for all periods presented.  However these allocations may not be indicative of the actual expenses that would have been incurred as an independent public company or the costs that may be incurred in the future.

For periods prior to the Separation, the income tax amounts in the consolidated and combined financial statements were calculated based on a separate income tax return methodology and presented as if the Company’s operations were separate taxpayers in the respective jurisdictions.

RRD maintained various benefit and share-based compensation plans at a corporate level.  Donnelley Financial employees participated in those programs and a portion of the cost of those plans is included in Donnelley Financial’s consolidated and combined financial statements for periods prior to the Separation.  On October 1, 2016, Donnelley Financial recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company. Refer to Note 10, Retirement Plans, for further details regarding the Company’s pension and other postretirement benefit plans.

Donnelley Financial generates a portion of net revenue from sales to RRD’s subsidiaries. Included in the consolidated and combined financial statements are net revenues from sales to RRD and affiliates of $8.3 million for the six months ended June 30, 2017 and $19.4 million and $7.8 million for the years ended December 31, 2016 and 2015, respectively. Donnelley Financial utilizes RRD for freight and logistics, production of certain printed products and outsourced business services functions. Included in the consolidated and combined financial statements are cost of sales to RRD and affiliates of $51.8 million for the six months ended June 30, 2017 and $95.7 million and $108.7 million for the years ended December 31, 2016 and 2015, respectively. See Note 19, Related Parties, for a further description of related party transactions.

 
 

Component: (Network and Table)
Network
100090 - Disclosure - Significant Accounting Policies
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSignificantAccountingPolicies)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accounting Policies [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accounting Policies [Abstract]
 
Significant Accounting Policies

Note 2. Significant Accounting Policies

Use of Estimates —The preparation of consolidated and combined financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, taxes, restructuring and other provisions and contingencies.

Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be indefinitely reinvested.

Fair Value Measurements—Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its pension plan assets on a recurring basis. See Note 10, Retirement Plans, for the fair value of the Company’s pension plan assets as of December 31, 2017.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

Revenue Recognition — The Company files highly-customized materials, such as regulatory S-filings and IPOs with the SEC on behalf of its customers, and performs XBRL and related services.  Revenue is recognized for these services upon completion of the service performed or following final delivery of the related printed product. The Company also provides virtual data room services and other content management services, for which revenue is recognized as the service is performed. The Company recognizes revenue for the majority of its products upon the transfer of title and risk of ownership, which is generally upon shipment to the customer. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale.

The Company records deferred revenue in situations where amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met.

Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross.  The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company and sold to customers.  No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis.

Refer to Note 20, New Accounting Pronouncements, for a discussion of the expected impact of the 2018 adoption of Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”).

Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations.

Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s net sales in 2017, 2016 or 2015. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 5, Accounts Receivable, for details of activity affecting the allowance for doubtful accounts receivable.

Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold.  Inventory is valued using the First-In, First-Out (FIFO) method.

Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.

Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.

Goodwill —Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative fair value of each reporting unit.  The Company's goodwill balances were reallocated from RRD’s historical reporting units based on the relative fair values of the businesses.  

Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount.  

For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed.

For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, the Company will recognize an impairment loss for the amount by which the carrying amount exceeds the fair value.

The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s annual review at October 31, 2017, and its interim review for indicators of impairment as of December 31, 2017, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying amount.

Amortization — Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of three years. Amortization expense related to internally-developed software, excluding amortization expense related to other intangible assets, was $22.5 million, $20.5 million and $17.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.  Other intangible assets are recognized separately from goodwill and are amortized over their estimated useful lives.  See Note 4, Goodwill and Other Intangible Assets, for further discussion of other intangible assets and the related amortization expense.

Share-Based Compensation — In periods prior to the Separation, RRD maintained an incentive share-based compensation program for the benefit of its officers, directors, and certain employees, including certain Donnelley Financial employees.  For those periods share-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of compensation expense to RRD’s corporate and shared functional employees.  

Subsequent to the Separation, the Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including restricted stock and restricted stock units. The Company recognizes compensation expense for restricted stock units expected to vest on a straight-line basis over the requisite service period of the award, based on the grant date fair value. The Company recognizes compensation expense for performance based restricted stock awards utlizing a graded vesting schedule. See Note 14, Share-Based Compensation, for further discussion.

Pension and Other Postretirement Benefit Plans — Prior to the Separation, RRD provided pension and other postretirement healthcare benefits to certain current and former employees of Donnelley Financial. Donnelley Financial’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in Donnelley Financial.

On October 1, 2016, Donnelley Financial recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company.

Donnelley Financial engages outside actuaries to assist in the determination of the obligations and costs under these plans.  The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effects of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods.  The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. Refer to Note 10, Retirement Plans, for further discussion.

Taxes on Income - In the Company’s combined financial statements prior to Separation, income tax expense and deferred tax balances were calculated on a separate income tax return basis although the Company’s operations have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. As a standalone entity, the Company will file tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in historical periods.

Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company maintains an income taxes payable or receivable account in each jurisdiction and, with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances with the RRD tax paying entities in the respective jurisdictions. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense.

The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s financial statements. The Company adjusts such reserves upon changes in circumstances that would cause a change to the estimate of the ultimate liability, upon effective settlement or upon the expiration of the statute of limitations, in the period in which such event occurs. See Note 11, Income Taxes, for further discussion.

 
 

Component: (Network and Table)
Network
100100 - Disclosure - Restructuring, Impairment and Other Charges
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherCharges)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Restructuring And Related Activities [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Restructuring And Related Activities [Abstract]
 
Restructuring, Impairment and Other Charges

Note 3.  Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges recognized in Results of Operations

 

2017

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Impairment

 

 

Other

Charges

 

 

Total

 

U.S.

$

3.3

 

 

$

0.2

 

 

$

3.5

 

 

$

0.2

 

 

$

0.2

 

 

$

3.9

 

International

 

2.1

 

 

 

0.1

 

 

 

2.2

 

 

 

 

 

 

 

 

 

2.2

 

Corporate

 

1.0

 

 

 

 

 

 

1.0

 

 

 

 

 

 

 

 

 

1.0

 

Total

$

6.4

 

 

$

0.3

 

 

$

6.7

 

 

$

0.2

 

 

$

0.2

 

 

$

7.1

 

 

Restructuring Charges

For the year ended December 31, 2017, the Company recorded net restructuring charges of $6.4 million for employee termination costs for 192 employees, substantially all of whom were terminated as of December 31, 2017. These charges primarily related to the reorganization of certain operations and certain administrative functions. During the year ended December 31, 2017, the Company also incurred $0.3 million of net lease termination and other restructuring costs, $0.2 million of net impairment charges related to leasehold improvements associated with facility closures and $0.2 million for other charges associated with the Company’s decision to withdraw in 2013 from certain-multi-employer pension plans serving facilities that continued to operate.

 

2016

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Other

Charges

 

 

Total

 

U.S.

$

3.0

 

 

$

1.5

 

 

$

4.5

 

 

$

0.2

 

 

$

4.7

 

International

 

0.6

 

 

 

 

 

 

0.6

 

 

 

 

 

 

0.6

 

Corporate

 

0.1

 

 

 

 

 

 

0.1

 

 

 

 

 

 

0.1

 

Total

$

3.7

 

 

$

1.5

 

 

$

5.2

 

 

$

0.2

 

 

$

5.4

 

 

Restructuring Charges

For the year ended December 31, 2016, the Company recorded net restructuring charges of $3.7 million for employee termination costs for 84 employees, all of whom were terminated as of December 31, 2017. These charges primarily related to the reorganization of certain administrative functions. Additionally, the Company incurred lease termination and other restructuring charges of $1.5 million for the year ended December 31, 2016.

 

2015

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Other

Charges

 

 

Total

 

U.S.

$

1.4

 

 

$

1.9

 

 

$

3.3

 

 

$

0.2

 

 

$

3.5

 

International

 

0.9

 

 

 

 

 

 

0.9

 

 

 

 

 

 

0.9

 

Total

$

2.3

 

 

$

1.9

 

 

$

4.2

 

 

$

0.2

 

 

$

4.4

 

 

Restructuring and Impairment Charges

For the year ended December 31, 2015, the Company recorded net restructuring charges of $2.3 million for employee termination costs for 64 employees, all of whom were terminated as of December 31, 2017.  These charges primarily related to the reorganization of certain administrative functions. Additionally, the Company incurred lease termination and other restructuring charges of $1.9 million for the year ended December 31, 2015.

 

Restructuring Reserve

The restructuring reserve as of December 31, 2017 and 2016, and changes during the year ended December 31, 2017, were as follows:

 

 

December 31,

2016

 

 

Restructuring

Charges

 

 

Reversals

 

 

Foreign

Exchange and

Other

 

 

Cash

Paid

 

 

December 31,

2017

 

Employee terminations

$

1.6

 

 

$

6.5

 

 

$

(0.1

)

 

$

 

 

$

(6.7

)

 

$

1.3

 

Lease terminations and other

 

3.8

 

 

 

3.7

 

 

 

(3.4

)

 

 

0.3

 

 

 

(2.3

)

 

 

2.1

 

Total

$

5.4

 

 

$

10.2

 

 

$

(3.5

)

 

$

0.3

 

 

$

(9.0

)

 

$

3.4

 

 

The current portion of restructuring reserves of $2.7 million at December 31, 2017 was included in accrued liabilities, while the long-term portion of $0.7 million, primarily related to lease termination costs, was included in other noncurrent liabilities at December 31, 2017.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June 30, 2018.

The restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2021. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Company’s financial statements. “Reversals” primarily relate to the reversal of previously recognized lease termination costs associated with a facility that the Company began using during the third quarter of 2017.

The restructuring reserve as of December 31, 2016 and 2015, and changes during the year ended December 31, 2016, were as follows:

 

 

December 31,

2015

 

 

Restructuring

Charges

 

 

Foreign

Exchange and

Other

 

 

Cash

Paid

 

 

December 31,

2016

 

Employee terminations

$

0.9

 

 

$

3.7

 

 

$

(0.1

)

 

$

(2.9

)

 

$

1.6

 

Lease terminations and other

 

4.9

 

 

 

1.5

 

 

 

 

 

 

(2.6

)

 

 

3.8

 

Total

$

5.8

 

 

$

5.2

 

 

$

(0.1

)

 

$

(5.5

)

 

$

5.4

 

 

The current portion of restructuring reserves of $3.7 million at December 31, 2016 was included in accrued liabilities, while the long-term portion of $1.7 million, primarily related to lease termination costs, was included in other noncurrent liabilities at December 31, 2016.

 
 

Component: (Network and Table)
Network
100110 - Disclosure - Goodwill and Other Intangible Assets
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssets)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Goodwill And Intangible Assets Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Goodwill And Intangible Assets Disclosure [Abstract]
 
Goodwill and Other Intangible Assets

Note 4. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows:

 

 

U.S.

 

 

International

 

 

Total

 

Net book value as of January 1, 2016

$

429.2

 

 

$

17.6

 

 

$

446.8

 

Foreign exchange and other adjustments

 

 

 

 

(0.4

)

 

 

(0.4

)

Net book value as of December 31, 2016

 

429.2

 

 

 

17.2

 

 

 

446.4

 

Foreign exchange and other adjustments

 

 

 

 

1.0

 

 

 

1.0

 

Net book value as of December 31, 2017

$

429.2

 

 

$

18.2

 

 

$

447.4

 

 

The components of other intangible assets at December 31, 2017 and 2016 were as follows:

 

 

December 31, 2017

 

 

December 31, 2016

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Net Book

 

 

Carrying

 

 

Accumulated

 

 

Net Book

 

 

Amount

 

 

Amortization

 

 

Value

 

 

Amount

 

 

Amortization

 

 

Value

 

Customer relationships

$

140.6

 

 

$

(100.7

)

 

$

39.9

 

 

$

138.8

 

 

$

(85.3

)

 

$

53.5

 

Trade names

 

2.9

 

 

 

(2.9

)

 

 

 

 

 

6.3

 

 

 

(5.5

)

 

 

0.8

 

Trademarks, licenses and agreements

 

 

 

 

 

 

 

 

 

 

3.2

 

 

 

(3.2

)

 

 

 

Total other intangible assets

$

143.5

 

 

$

(103.6

)

 

$

39.9

 

 

$

148.3

 

 

$

(94.0

)

 

$

54.3

 

 

Amortization expense for other intangible assets was $15.0 million, $14.4 million and $15.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2017:

 

For the year ending December 31,

Amount

 

2018

$

13.8

 

2019

 

13.8

 

2020

 

12.3

 

2021

 

 

2022

 

 

2023 and thereafter

 

 

Total

$

39.9

 

 
 

Component: (Network and Table)
Network
100120 - Disclosure - Accounts Receivable
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccountsReceivable)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Receivables [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Receivables [Abstract]
 
Accounts Receivable

Note 5. Accounts Receivable

Transactions affecting the allowances for doubtful accounts receivable during the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance, beginning of year

$

6.4

 

 

$

4.6

 

 

$

3.9

 

Provisions charged to expense

 

3.9

 

 

 

3.1

 

 

 

0.5

 

Write-offs and other

 

(3.0

)

 

 

(1.3

)

 

 

0.2

 

Balance, end of year

$

7.3

 

 

$

6.4

 

 

$

4.6

 

 
 

Component: (Network and Table)
Network
100130 - Disclosure - Inventories
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureInventories)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Inventory Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Inventory Disclosure [Abstract]
 
Inventories

Note 6. Inventories

The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2017 and 2016 were as follows:  

 

 

2017

 

 

2016

 

Raw materials and manufacturing supplies

$

3.3

 

 

$

7.6

 

Work in process

 

13.7

 

 

 

10.8

 

Finished goods

 

6.3

 

 

 

5.7

 

Total

$

23.3

 

 

$

24.1

 

 

 
 

Component: (Network and Table)
Network
100140 - Disclosure - Property, Plant and Equipment
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePropertyPlantAndEquipment)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Property Plant And Equipment [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Property Plant And Equipment [Abstract]
 
Property, Plant and Equipment

Note 7. Property, Plant and Equipment

The components of the Company’s property, plant and equipment at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Land

$

10.0

 

 

$

10.0

 

Buildings

 

36.1

 

 

 

44.4

 

Machinery and equipment

 

104.0

 

 

 

109.2

 

 

 

150.1

 

 

 

163.6

 

Less: Accumulated depreciation

 

(115.4

)

 

 

(128.1

)

Total

$

34.7

 

 

$

35.5

 

 

During the years ended December 31, 2017, 2016 and 2015, depreciation expense was $7.0 million, $8.4 million and $9.1 million, respectively.

 

 
 

Component: (Network and Table)
Network
100150 - Disclosure - Accrued Liabilities
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccruedLiabilities)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accrued Liabilities Current [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accrued Liabilities Current [Abstract]
 
Accrued Liabilities

Note 8. Accrued Liabilities

 

The components of the Company’s accrued liabilities at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Employee-related liabilities

$

68.9

 

 

$

54.0

 

Customer-related liabilities

 

22.9

 

 

 

19.3

 

Accrued interest payable

 

6.4

 

 

 

6.2

 

Restructuring liabilities

 

2.7

 

 

 

3.7

 

Other

 

18.3

 

 

 

17.5

 

Total accrued liabilities

$

119.2

 

 

$

100.7

 

Employee-related liabilities consist primarily of sales commission, incentive compensation, employee benefit accruals and payroll.  Customer-related liabilities consist primarily of deferred revenue and progress billings and volume discount accruals. Other accrued liabilities include miscellaneous operating accruals and income and other tax liabilities.

 
 

Component: (Network and Table)
Network
100160 - Disclosure - Commitments and Contingencies
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureCommitmentsAndContingencies)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Commitments And Contingencies Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Commitments And Contingencies Disclosure [Abstract]
 
Commitments and Contingencies

Note 9. Commitments and Contingencies

As of December 31, 2017, the Company had commitments of approximately $5.3 million for the purchase of property, plant and equipment related to incomplete projects. In addition, as of December 31, 2017, the Company had commitments of approximately $34.1 million for outsourced services, professional, maintenance and other services. The Company also has contractual commitments of $1.3 million for severance payments related to employee restructuring activities.

Future minimum rental commitments under operating leases are as follows:

 

Year Ended December 31

Amount

 

2018

$

26.6

 

2019

 

20.1

 

2020

 

13.4

 

2021

 

10.1

 

2022

 

8.4

 

2023 and thereafter

 

21.8

 

 

$

100.4

 

 

The Company has operating lease commitments, including those for vacated facilities, totaling $100.4 million extending through various periods to 2026. Lease terms for some locations provide for rent escalations and renewal options, with some leases requiring payment for taxes, insurance and maintenance. Escalation terms and renewal options vary by market and lease. Future rental commitments for leases have not been reduced by minimum non-cancelable sublease rentals aggregating approximately $31.9 million. The Company remains secondarily liable under these leases in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreements.

Rent expense for facilities in use and equipment was $27.4 million, $23.8 million and $22.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. Rent expense for vacated facilities was recognized as restructuring, impairment and other charges. See Note 3, Restructuring, Impairment and Other Charges, for further details.

Litigation

From time to time, the Company’s customers and others file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by the Company from these parties could be considered preference items and subject to return. In addition, the Company may be party to certain litigation arising in the ordinary course of business. Management believes that the final resolution of these preference items and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or cash flows.

 
 

Component: (Network and Table)
Network
100170 - Disclosure - Retirement Plans
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlans)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation And Retirement Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Compensation And Retirement Disclosure [Abstract]
 
Retirement Plans

Note 10. Retirement Plans

Donnelley Financial’s Participation in RRD’s Pension and Postretirement Benefit Plans

RRD provided pension and other postretirement healthcare benefits to certain current and former employees of Donnelley Financial. Donnelley Financial’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in Donnelley Financial. Total RRD pension and postretirement benefit plan net income allocated to Donnelley Financial, related to pension cost and postretirement benefits was $4.2 million and $3.7 million in the years ended December 31, 2016 and 2015, respectively. Included in these amounts is an allocation for other postretirement benefit plans for $1.0 million and $1.9 million in the years ended December 31, 2016 and 2015, respectively.  These allocations are reflected in the Company’s selling, general and administrative expenses.  

Donnelley Financial’s Pension and Postretirement Benefit Plans

On October 1, 2016, Donnelley Financial recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company.

The Company’s primary defined benefit plan is frozen. No new employees are permitted to enter the Company’s frozen plan and participants will earn no additional benefits. Benefits are generally based upon years of service and compensation. These defined benefit retirement income plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all funded plans using actuarial cost methods and assumptions acceptable under government regulations.

The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the consolidated balance sheets, but are amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive loss.  Total pension income was $3.3 million, $1.0 million and $27.0 million in 2017, 2016 and 2015, respectively, of which $25.2 million was allocated in 2015 to RRD and RRD related parties.  

During the year ended December 31, 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables which were used in the calculation of the Company’s U.S. pension obligations. The new mortality tables increased the expected life of plan participants, extending the length of time that payments may be required and increasing the plans’ total expected benefit payments. During the years ended December 31, 2016, and December 31, 2017, the Company adopted updates to the Society of Actuaries RP-2014 mortality tables. The 2016 and 2017 mortality table updates both resulted in a partial reversal of the 2014 increases in the expected life of plan participants and benefit obligations.

The Company made cash contributions of $2.1 million and $0.1 million to its pension and other postretirement benefit plans, respectively, during the year ended December 31, 2017. The Company expects to make cash contributions of approximately $2.3 million and $0.1 million to its pension and other postretirement benefit plans, respectively, in 2018.

The pension plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of active plan participants.

The components of the estimated net pension plan income for Donnelley Financial’s pension plans for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

Pension Benefits

 

 

2017

 

 

2016

 

 

2015

 

Interest cost

$

10.6

 

 

$

2.4

 

 

$

147.3

 

Expected return on plan assets

 

(16.0

)

 

 

(4.1

)

 

 

(210.7

)

Amortization of actuarial loss

 

2.1

 

 

 

0.7

 

 

 

36.4

 

Net periodic benefit income

$

(3.3

)

 

$

(1.0

)

 

$

(27.0

)

Income allocated to RRD affiliates

 

 

 

 

 

 

 

25.2

 

Net periodic benefit income, net of allocation

$

(3.3

)

 

$

(1.0

)

 

$

(1.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumption used to calculate net periodic benefit expense:

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

4.2

%

 

 

3.7

%

 

 

4.2

%

Expected return on plan assets

 

7.0

%

 

 

7.3

%

 

 

7.5

%

 

Reconciliation of funded status

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Benefit obligation at beginning of year

$

293.3

 

 

$

3.2

 

 

$

1.2

 

 

$

 

Interest cost

 

10.6

 

 

 

2.4

 

 

 

 

 

 

 

Actuarial loss (gain)

 

22.9

 

 

 

(24.7

)

 

 

 

 

 

(0.3

)

Plan transfer

 

 

 

 

317.0

 

 

 

 

 

 

1.5

 

Foreign currency translation

 

 

 

 

 

 

 

0.1

 

 

 

 

Benefits paid

 

(16.9

)

 

 

(4.6

)

 

 

(0.1

)

 

 

 

Benefit obligation at end of year

$

309.9

 

 

$

293.3

 

 

$

1.2

 

 

$

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

$

235.8

 

 

$

 

 

$

 

 

$

 

Actual return on assets

 

36.1

 

 

 

(9.6

)

 

 

 

 

 

 

Employer contributions

 

2.1

 

 

 

1.3

 

 

 

0.1

 

 

 

 

Plan transfer

 

(0.7

)

 

 

248.7

 

 

 

 

 

 

 

Benefits paid

 

(16.9

)

 

 

(4.6

)

 

 

(0.1

)

 

 

 

Fair value of plan assets at end of year

$

256.4

 

 

$

235.8

 

 

$

 

 

$

 

Funded status at end of year

$

(53.5

)

 

$

(57.5

)

 

$

(1.2

)

 

$

(1.2

)

 

The accumulated benefit obligation for all defined benefit pension and other postretirement benefit plans was $311.1 million and $294.5 million at December 31, 2017 and 2016, respectively.

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Accrued benefit cost (included in accrued liabilities)

$

(2.2

)

 

$

(2.2

)

 

$

 

 

$

(0.1

)

Pension and other postretirement benefits plan liabilities

 

(51.3

)

 

 

(55.3

)

 

 

(1.2

)

 

 

(1.1

)

Net liabilities recognized in the Consolidated Balance Sheets

$

(53.5

)

 

$

(57.5

)

 

$

(1.2

)

 

$

(1.2

)

 

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets excluding tax effects, that have not been recognized as components of net periodic cost at December 31, 2017 and 2016 were as follows:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Accumulated other comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (loss) gain

$

(87.6

)

 

$

(87.0

)

 

$

0.1

 

 

$

0.2

 

Total

$

(87.6

)

 

$

(87.0

)

 

$

0.1

 

 

$

0.2

 

 

The pre-tax amounts recognized in other comprehensive income (loss) in 2017 as components of net periodic costs were as follows:

 

 

Pension

Benefits

 

Amortization of:

 

 

 

     Net actuarial loss

$

2.1

 

Amounts arising during the period:

 

 

 

     Net actuarial loss

 

(2.7

)

Total

$

(0.6

)

 

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2018 are shown below:

 

 

Pension

Benefits

 

Amortization of:

 

 

 

Net actuarial loss

$

2.5

 

Total

$

2.5

 

 

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

3.7

%

 

 

4.2

%

 

 

3.3

%

 

 

3.6

%

 

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2017 and 2016:

 

 

Pension Benefits

 

 

2017

 

 

2016

 

Projected benefit obligation

$

309.9

 

 

$

293.3

 

Fair value of plan assets

 

256.4

 

 

 

235.8

 

 

As discussed above, the Company’s defined benefit plan is frozen and no new employees are permitted to enter the plan. Participants do not earn additional service benefits. Consequently the projected benefit obligation and accumulated benefit obligation are the same amounts. 

 

Benefit payments are expected to be paid as follows:

 

 

Pension

Benefits

 

 

Other

Postretirement

Benefits

 

2018

$

16.8

 

 

$

0.1

 

2019

 

16.7

 

 

 

0.1

 

2020

 

17.0

 

 

 

0.1

 

2021

 

18.2

 

 

 

0.1

 

2022

 

18.9

 

 

 

0.1

 

2023-2027

 

92.8

 

 

 

0.4

 

 

Plan Assets

The Company’s U.S. pension plans are frozen and the Company has a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. The expected long-term rate of return for plan assets is based upon many factors including asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The target asset allocation percentage as of December 31, 2017, for the primary U.S. pension plan was approximately 60.0% for return seeking investments and approximately 40.0% for fixed income investments.

The Company segregated its plan assets by the following major categories and levels for determining their fair value as of 2017:

Cash and cash equivalents— Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. As such, these assets were classified as Level 2.

Equity— The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1.

Fixed income— Fixed income securities are typically priced based on a valuation model rather than a last trade basis and are not exchange-traded. These valuation models involve utilizing dealer quotes, analyzing market information, estimating prepayment speeds and evaluating underlying collateral. Accordingly, the Company classified these fixed income securities as Level 2. Fixed income securities also include investments in various asset-backed securities that are part of a government sponsored program. The prices of these asset-backed securities were obtained by independent third parties using multi-dimensional, collateral specific prepayments tables. Inputs include monthly payment information and collateral performance. As the values of these assets was determined based on models incorporating observable inputs, these assets were classified as Level 2.

The Company invests in certain equity funds that are valued at calculated net asset value per share (“NAV”), but are not quoted on active markets. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

For Level 2 plan assets, management reviews significant investments on a quarterly basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts.

The fair values of the Company’s pension plan assets at December 31, 2017 and 2016, by asset category were as follows:

 

 

December 31, 2017

 

Asset Category

Total

 

 

Level 1

 

 

Level 2

 

Cash and cash equivalents

$

7.0

 

 

$

3.2

 

 

$

3.8

 

Equity

 

63.5

 

 

 

63.5

 

 

 

 

Fixed income

 

87.1

 

 

 

 

 

 

87.1

 

Equity funds measured at NAV

 

98.8

 

 

 

 

 

 

 

Total

$

256.4

 

 

$

66.7

 

 

$

90.9

 

 

 

December 31, 2016

 

Asset Category

Total

 

 

Level 1

 

 

Level 2

 

Cash and cash equivalents

$

6.4

 

 

$

4.1

 

 

$

2.3

 

Equity

 

67.6

 

 

 

67.6

 

 

 

 

Fixed income

 

93.9

 

 

 

 

 

 

93.9

 

Equity funds measured at NAV

 

67.9

 

 

 

 

 

 

 

Total

$

235.8

 

 

$

71.7

 

 

$

96.2

 

 

Employer 401(k) Savings Plan — For the benefit of most of its U.S. employees, the Company maintains a defined contribution retirement savings plan (401(k)) that is intended to be qualified under Section 401(a) of the Internal Revenue Code. Under this plan, employees may contribute a percentage of eligible compensation on both a before-tax and after-tax basis. The Company provided a 401(k) discretionary match to participants in 2017, payable to participants' accounts in the first quarter of 2018. The total expense attributable to the match was $3.4 million for the year ended December 31, 2017. The Company did not provide a 401(k) discretionary match to participants in 2016 or 2015. 

Multi-Employer Pension Plans — The Company no longer participates in any active defined benefit multi-employer pension plans. During each of the years ended December 31, 2017, 2016 and 2015, the Company incurred additional charges of $0.2 million related to its complete withdrawal from one multi-employer pension plan in 2013. These charges were recorded as restructuring, impairment and other charges and represent the Company’s best estimate of the expected settlement of these withdrawal liabilities. See Note 3, Restructuring, Impairment and Other Charges, to the consolidated and combined financial statements for further details of charges related to complete multi-employer pension plan withdrawal liabilities recognized in the consolidated and combined statements of operations.

 

 
 

Component: (Network and Table)
Network
100180 - Disclosure - Income Taxes
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxes)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Income Tax Disclosure [Abstract]
 
Income Taxes

Note 11. Income Taxes

For periods prior to the Separation, income tax expense and deferred tax balances were calculated on a separate tax return basis although the Company’s operations in certain circumstances, particularly the U.S. and Canada, have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. Beginning October 1, 2016, as a stand-alone entity, the Company files tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in the historical periods.

The Company maintains an income taxes payable or receivable account in each jurisdiction and with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances for the period prior to the Separation with the RRD tax-paying entities in the respective jurisdictions.  These settlements are reflected as changes in net parent company investment in the consolidated and combined balance sheets.  

Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2017, 2016 and 2015:

 

 

2017

 

 

2016

 

 

2015

 

U.S.

$

49.1

 

 

$

84.9

 

 

$

156.1

 

Foreign

 

7.1

 

 

 

9.4

 

 

 

15.6

 

Total

$

56.2

 

 

$

94.3

 

 

$

171.7

 

 

The components of income tax expense (benefit) from operations for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

2017

 

 

2016

 

 

2015

 

Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

$

12.5

 

 

$

28.6

 

 

$

41.3

 

U.S. State and Local

 

5.1

 

 

 

9.0

 

 

 

12.1

 

Foreign

 

3.4

 

 

 

3.5

 

 

 

3.8

 

Current income tax expense

 

21.0

 

 

 

41.1

 

 

 

57.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

12.5

 

 

 

 

 

 

 

U.S. State and Local

 

0.6

 

 

 

 

 

 

 

Non-current income tax expense

 

13.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

13.3

 

 

 

(3.1

)

 

 

8.1

 

U.S. State and Local

 

(0.1

)

 

 

(0.4

)

 

 

2.2

 

Foreign

 

(0.8

)

 

 

(2.4

)

 

 

(0.1

)

Deferred income tax expense (benefit)

 

12.4

 

 

 

(5.9

)

 

 

10.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

46.5

 

 

$

35.2

 

 

$

67.4

 

 

The following table outlines the reconciliation of differences between the U.S. Federal statutory tax rate and the Company’s worldwide effective income tax rate:

 

 

2017

 

 

2016

 

 

2015

 

Federal statutory tax rate

 

35.0

%

 

 

35.0

%

 

 

35.0

%

Federal and state transition tax on foreign earnings

 

25.3

 

 

 

 

 

 

 

Tax Act revaluation of U.S. net deferred tax assets

 

14.8

 

 

 

 

 

 

 

State and local income taxes, net of U.S. federal income tax benefit

 

5.7

 

 

 

5.9

 

 

 

5.4

 

Non-deductible expenses

 

3.6

 

 

 

 

 

 

 

Changes in valuation allowances

 

0.5

 

 

 

(1.9

)

 

 

 

Adjustment of uncertain tax positions and interest

 

(0.4

)

 

 

0.6

 

 

 

0.1

 

Domestic manufacturing deduction

 

(0.7

)

 

 

(1.3

)

 

 

(0.9

)

Foreign tax rate differential

 

(1.3

)

 

 

(0.7

)

 

 

(1.0

)

Other

 

0.2

 

 

 

(0.3

)

 

 

0.7

 

Effective income tax rate

 

82.7

%

 

 

37.3

%

 

 

39.3

%

 

The 2017 effective income tax rate is higher as compared to the 2016 effective income tax rate mainly due to impacts of the recent changes to U.S. tax legislation as a result of the enactment of the Tax Cuts and Jobs Act (H.R. 1) (“the Tax Act”) on December 22, 2017. The 2017 effective income tax rate was also impacted by non-deductible expenses incurred by the Company in 2017 which were previously incurred by RRD on behalf of the Company during pre-Separation periods, as well as a one-time favorable change in valuation allowances in 2016 not present in 2017.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period of one year from the Tax Act enactment date for companies to complete their accounting. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply its accounting on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, the Company has revalued its U.S. deferred tax assets and liabilities as of December 31, 2017. The Company has recorded a reduction in the value of its net U.S. deferred tax asset of approximately $8.2 million, which has been recorded as additional deferred income tax expense in the Company’s consolidated statement of operations for the year ended December 31, 2017 and represents an income tax rate increase of 14.8%. Due to the transition to a territorial tax system under the Tax Act, the Company will be deemed to repatriate its foreign subsidiaries’ untaxed accumulated earnings and pay a mandatory U.S. federal tax (“the transition tax”) of 15.5% on the portion of the earnings that are in cash and cash equivalents and 8% on the portion of earnings that are in non-cash and non-cash equivalent assets. The Company has estimated this tax liability (federal and state) to be approximately $14.2 million which has been recorded as income tax expense in the consolidated statement of operations for the year ended December 31, 2017 and represents an income tax rate increase of 25.3%. In accordance with SAB 118, the impact of the revaluation of deferred tax assets ($8.2 million) and the transition tax ($14.2 million) are recorded in the Company’s financial statements for the year ended December 31, 2017 as provisional amounts as the Company was able to reasonably estimate the impact of these items. As the Company continues to analyze the full effects of the Tax Act on its financial statements, the impact of the Tax Act may differ from these provisional estimates due to, among other things, changes in interpretations and assumptions the Company has made, Department of the U.S. Treasury Internal Revenue Service (“IRS”) guidance and regulations that may be issued and actions the Company may take as a result. Pursuant to SAB 118, the Company will complete the accounting for these items within the twelve month measurement period.

As available under the Tax Act, the Company will make an election to pay the transition tax liability in installments over eight years. Consequently, $13.1 million of this liability has been recorded as noncurrent taxes payable and $1.1 million as current taxes payable in the Company’s consolidated balance sheet as of December 31, 2017.

Along with the change to a territorial tax system, the Tax Act creates the global intangible low-taxed income ("GILTI") provision. The GILTI provision imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign subsidiary corporations. The Company may be subject to the GILTI tax in a given year, but currently does not expect that it should have a material impact to the Company’s tax provision. The determination of whether the Company is subject to the GILTI provision will be an annual analysis of several factors under the provision, including the amount of foreign income generated by the Company’s foreign subsidiaries and whether the Company has income subject to the GILTI tax, which may change from year to year. In January 2018, the Financial Accounting Standards Board (“FASB”) released guidance on the accounting for GILTI tax, which allows an accounting policy election for companies to either account for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs. The Company has not yet adopted its accounting policy with respect to GILTI tax; however, will do so within the twelve month measurement period pursuant to SAB 118.

Deferred income taxes

The significant deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

Pension and other postretirement benefit plans liabilities

$

15.9

 

 

$

24.1

 

Accrued liabilities

 

11.9

 

 

 

18.5

 

Net operating losses and other tax carryforwards

 

10.1

 

 

 

14.4

 

Allowance for doubtful accounts

 

2.5

 

 

 

3.3

 

Share-based compensation

 

2.9

 

 

 

2.2

 

Other

 

1.2

 

 

 

2.4

 

Total deferred tax assets

 

44.5

 

 

 

64.9

 

Valuation allowances

 

(1.5

)

 

 

(1.2

)

Total deferred tax assets

$

43.0

 

 

$

63.7

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Other intangible assets

$

(12.8

)

 

$

(21.0

)

Accelerated depreciation

 

(6.8

)

 

 

(3.1

)

Other

 

(1.6

)

 

 

(2.6

)

Total deferred tax liabilities

 

(21.2

)

 

 

(26.7

)

Net deferred tax assets

$

21.8

 

 

$

37.0

 

 

The amounts above are included in the Consolidated Balance Sheets as either a net asset or liability on a jurisdiction by jurisdiction basis.

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance, beginning of year

$

1.2

 

 

$

4.9

 

 

$

5.3

 

Current year expense (benefit)-net

 

0.3

 

 

 

(1.5

)

 

 

 

Write-offs

 

 

 

 

(2.3

)

 

 

 

Foreign exchange and other

 

 

 

 

0.1

 

 

 

(0.4

)

Balance, end of year

$

1.5

 

 

$

1.2

 

 

$

4.9

 

 

As of December 31, 2017, the Company had domestic and foreign net operating loss deferred tax assets of approximately $10.1 million ($14.4 million at December 31, 2016), of which $3.5 million expires between 2018 and 2027. Limitations on the utilization of these deferred tax assets may apply. The Company has provided valuation allowances to reduce the carrying value of certain deferred tax assets, as management has concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized.

Earnings generated by a foreign subsidiary are presumed to ultimately be transferred to the parent company. Therefore, the establishment of deferred taxes may be required with respect to the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries (also referred to as book-over-tax outside basis differences). A company may overcome this presumption and forgo recording a deferred tax liability in its financial statements if it can assert that management has the intent and ability to indefinitely reinvest the earnings of its foreign subsidiaries. Prior to the year ended December 31, 2017, the Company has not provided deferred U.S., foreign or local income taxes on the book-over-tax outside basis differences of its foreign subsidiaries because such excess has been considered to be indefinitely reinvested in the local country businesses. As a result of the transition tax that the Company will incur pursuant to the Tax Act, the Company now has the ability to repatriate to the U.S. parent the foreign cash associated with the foreign earnings subject to the transition tax, as these earnings have already been subject to U.S. federal taxes. The Company is currently analyzing its global working capital and cash requirements in order to determine the amount of excess cash at its foreign subsidiaries that can be repatriated to the U.S. with minimal additional taxes, but has not yet determined whether the Company plans to change its assertion of indefinite reinvestment on all foreign earnings and other outside basis differences.  As the Company has not completed its analysis in accordance with SAB 118, the Company has not recorded any deferred taxes attributable to the book-over-tax outside basis differences in its foreign subsidiaries.  The Company will record the tax effects of any change in the Company’s assertion in the period that it completes its analysis; however, the Company does not anticipate incurring material foreign and/or local country taxes upon repatriation of foreign subsidiary earnings.

Cash payments for income taxes for U.S. states and foreign jurisdictions were $30.5 million, $5.2 million and $1.9 million in 2017, 2016 and 2015, respectively. In certain jurisdictions, such as the United States and Canada, the Company is deemed to settle tax balances as of October 1, 2016 with RRD within net parent investment. Total amounts settled with RRD were $2.6 million, $37.2 million and $55.1 million for 2017, 2016 and 2015, respectively.  Cash refunds for income taxes were $1.0 million, $0.7 million and $0.1 million in 2017, 2016 and 2015, respectively.  

Uncertain tax positions

Changes in the Company’s unrecognized tax benefits at December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance at beginning of year

$

1.9

 

 

$

1.0

 

 

$

0.7

 

Additions for tax positions of the current year

 

 

 

 

 

 

 

0.3

 

Additions for tax positions of prior years

 

 

 

 

0.9

 

 

 

 

Settlements during the year

 

(1.4

)

 

 

 

 

 

 

Releases

 

(0.2

)

 

 

 

 

 

 

Balance at end of year

$

0.3

 

 

$

1.9

 

 

$

1.0

 

 

As of December 31, 2017, 2016 and 2015, the Company had $0.3 million, $1.9 million and $1.0 million, respectively, of unrecognized tax benefits. Unrecognized tax benefits of $0.1 million as of December 31, 2017, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net earnings. This potential impact on net earnings reflects the reduction of these unrecognized tax benefits, net of certain deferred tax assets and the federal tax benefit of state income tax items.

As of December 31, 2017, no portion of the total amount of unrecognized tax benefits is expected to decrease within twelve months due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state or international tax positions.

The Company classifies interest expense and any penalties related to income tax uncertainties as a component of income tax expense. The total interest expense/(benefit), net of tax benefits, related to tax uncertainties recognized in the Consolidated and Combined Statements of Operations was ($0.2) million, $0.3 million and $0.2  million for the years ended December 31, 2017, 2016 and 2015, respectively. There were no benefits from the reversal of accrued penalties for the years ended December 31, 2017, 2016 and 2015. There were no accrued interest liabilities related to income tax uncertainties at December 31, 2017. Accrued interest liabilities of $0.3 million related to income tax uncertainties were reported as a component of other noncurrent liabilities in the Consolidated Balance Sheets at December 31, 2016. There were no accrued penalties related to income tax uncertainties for the years ended December 31, 2017 and 2016.

The Company has tax years from 2009 that remain open and subject to examination by certain U.S. state taxing authorities and/or certain foreign tax jurisdictions. During 2017, the Company filed its initial U.S. federal income tax return as a separate company for the stub period October 1, 2016 through December 31, 2016. Other than this stub period, there are no prior years subject to IRS examination.

 
 

Component: (Network and Table)
Network
100190 - Disclosure - Debt
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebt)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Debt Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Debt Disclosure [Abstract]
 
Debt

Note 12. Debt

On September 30, 2016, in connection with the Separation, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for (i) a new senior secured term loan B facility in an aggregate principal amount of $350.0 million (the “Term Loan Credit Facility”) and (ii) a new first lien senior secured revolving credit facility in an aggregate principal amount of $300.0 million (the “Revolving Facility”, and, together with the Term Loan Credit Facility, the “Credit Facilities”). The Credit Agreement contains a number of covenants, including a minimum Interest Coverage Ratio and a maximum Leverage Ratio, as defined in and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The Credit Agreement generally allows annual dividend payments of up to $15.0 million in the aggregate. As of December 31, 2017, there were no outstanding borrowings under the Revolving Facility.

Borrowings under the Term Loan Credit Facility were used to provide $340.2 million of cash to RRD, pursuant to the Separation Agreement, as of September 30, 2016. The remainder of the net proceeds was used for general corporate purposes.

Pursuant to the Separation and Distribution Agreement, the Company received a cash payment of $68.0 million from RRD on April 3, 2017. The proceeds were used to reduce outstanding debt under the Term Loan Credit Facility.

On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon the consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock of the offering which were subsequently sold by RRD on August 4, 2017. In conjunction with the underwritten public offering, the underwriters exercised their option to purchase approximately 0.9 million Option Shares. The Company received approximately $18.8 million in net proceeds from the sale of the Option Shares, after deducting estimated underwriting discounts and commissions. The proceeds were used to reduce outstanding debt under the Revolving Facility.

On October 2, 2017, the Company repriced the Term Loan Credit Facility. As a result, the interest rate was reduced by 100 basis points to LIBOR plus 3.0% and the LIBOR floor was reduced by 25 basis points to 0.75%. Additionally, under the amended Credit Agreement, principal payments are due on a quarterly basis. Other terms, including the outstanding principal, maturity date, and debt covenants such as the minimum Interest Coverage Ratio and the maximum Leverage Ratio are consistent with the original Credit Agreement. 

On September 30, 2016, also in connection with the Separation, the Company issued $300.0 million of 8.25% senior unsecured notes due October 15, 2024 (the “Notes”). Interest on the Notes is payable semi-annually on April 15 and October 15, commencing on April 15, 2017. The issuance of the Notes was part of a debt exchange that resulted in the settlement of certain of RRD's bonds. The Notes were issued pursuant to an indenture where certain wholly-owned domestic subsidiaries of the Company guarantee the Notes (the “Guarantors”).  The Notes are jointly and severally guaranteed, on an unsecured basis, by the Guarantors, which are comprised of each of the Company’s existing and future direct and indirect wholly-owned U.S. subsidiaries that guarantee the Company’s obligations under the Credit Facilities. The Notes are not guaranteed by the Company’s foreign subsidiaries or unrestricted subsidiaries. The Notes and the related guarantees will be the Company and the Guarantors’, respective, senior unsecured obligations and will rank equally in right of payment to all present and future senior debt, including the obligations under the Company’s Credit Facilities, senior in right of payment to all present and future subordinated debt, and effectively subordinated in right of payment to any of the Company and the Guarantors’ secured debt, to the extent of the value of the assets securing such debt. The indenture governing the Notes contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on: (1) liens; (2) indebtedness; (3) mergers, consolidations and acquisitions; (4) sales, transfers and other dispositions of assets; (5) loans and other investments; (6) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (7) restrictions affecting subsidiaries; (8) transactions with affiliates; and (9) designations of unrestricted subsidiaries. Each of these covenants is subject to important exceptions and qualifications.

In connection with the offering of the Notes, the Company entered into a registration rights agreement, dated as of September 30, 2016 (the “Registration Rights Agreement”), pursuant to which the Company agreed to file a registration statement with the SEC with respect to an offer to exchange the Notes for registered notes. In certain circumstances, the Company may be required to file a shelf registration statement with the SEC registering the resale of the Notes by the holders thereof, in lieu of an exchange offer to such holders. On March 10, 2017, the Company filed a Registration Statement on Form S-4 (as amended, the “Exchange Offer Registration Statement”) to offer to exchange the Notes for registered notes which have terms identical in all material respects to the Notes except that the registered notes are not subject to transfer restrictions or registration rights. The Exchange Offer Registration Statement was declared effective by the SEC on March 22, 2017. An exchange offer for the Notes was launched on March 22, 2017 and settled on April 25, 2017, resulting in the exchange of $299.9 million aggregate principal amount of outstanding Notes for registered notes.

The Company’s debt as of December 31, 2017 and 2016 consisted of the following:

 

 

December 31,

 

 

December 31,

 

 

2017

 

 

2016

 

8.25% senior notes due October 15, 2024

$

300.0

 

 

$

300.0

 

Term Loan Credit Facility

 

168.6

 

 

 

298.3

 

Borrowings under the Revolving Facility

 

 

 

 

 

Unamortized debt issuance costs

 

(10.3

)

 

 

(11.3

)

Total debt

 

458.3

 

 

 

587.0

 

Less: current portion

 

 

 

 

 

Long-term debt

$

458.3

 

 

$

587.0

 

 

The fair value of the senior notes, which was determined using the market approach based upon interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s senior notes was $321.5 million and $307.1 million at December 31, 2017 and 2016, respectively.

The weighted average interest rate on borrowings under the Revolving Facility was 4.4% at December 31, 2017.

As of December 31, 2017, the Company had $4.5 million in outstanding letters of credit and bank guarantees, of which none reduced to the availability under the Revolving Facility.

At December 31, 2017, the future maturities of debt were as follows:

 

 

Amount

 

2018

$

 

2019

 

 

2020

 

2.5

 

2021

 

10.0

 

2022

 

10.0

 

2022 and thereafter

 

447.5

 

Total(a)

$

470.0

 

 

(a)

Excludes unamortized debt issuance costs of $10.3 million and a discount of $1.4 million which do not represent contractual commitments with a fixed amount or maturity date.

 

The following table summarizes interest expense included in the Consolidated and Combined Statements of Operations:

 

 

2017

 

 

2016

 

 

2015

 

Interest incurred

$

43.5

 

 

$

12.2

 

 

$

1.1

 

Less: interest capitalized as property, plant and equipment

 

(0.6

)

 

 

(0.5

)

 

 

 

Interest expense, net

$

42.9

 

 

$

11.7

 

 

$

1.1

 

 

Interest paid was $40.0 million, $4.8 million and $1.1 million in 2017, 2016 and 2015, respectively.

 
 

Component: (Network and Table)
Network
100200 - Disclosure - Earnings per Share
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureEarningsPerShare)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Earnings Per Share [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Earnings Per Share [Abstract]
 
Earnings per Share

Note 13. Earnings per Share

Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including restricted stock units and restricted stock.

On October 1, 2016, RRD distributed approximately 26.2 million shares of Donnelley Financial common stock to RRD shareholders in connection with the spin-off of Donnelley Financial, with RRD retaining approximately 6.2 million shares of Donnelley Financial common stock. Holders of RRD common stock received one share of Donnelley Financial for every eight shares of RRD common stock held on September 23, 2016. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of Donnelley Financial shares outstanding immediately following this transaction. For periods prior to the Separation, basic and diluted earnings per share were calculated using the number of shares distributed and retained by RRD, totaling 32.4 million. The same number of shares was used to calculate basic and diluted earnings per share since there were no Donnelley Financial equity awards outstanding prior to the spin-off.

On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon consumption of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017. Refer to Note 1, Overview and Basis of Presentation, for further details.

As a result of the Company adopting Accounting Standards Update 2016-09 “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) beginning in the first quarter of 2017, excess tax benefits and tax deficiencies are excluded from the calculation of assumed proceeds when using the treasury stock method in calculating diluted 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 years ended December 31, 2017, 2016 and 2015, were as follows.

 

 

2017

 

 

2016

 

 

2015

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.29

 

 

$

1.81

 

 

$

3.22

 

Diluted

$

0.29

 

 

$

1.80

 

 

$

3.22

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

9.7

 

 

$

59.1

 

 

$

104.3

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

33.1

 

 

 

32.6

 

 

 

32.4

 

Dilutive awards

 

0.2

 

 

 

0.2

 

 

 

 

Diluted weighted average number of common shares outstanding

 

33.3

 

 

 

32.8

 

 

 

32.4

 

Weighted average number of anti-dilutive share-based awards:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

0.2

 

 

 

0.2

 

 

 

 

Stock options

 

0.3

 

 

 

0.2

 

 

 

 

Total

 

0.5

 

 

 

0.4

 

 

 

 

 
 

Component: (Network and Table)
Network
100210 - Disclosure - Share-Based Compensation
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Share Based Compensation [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Share Based Compensation [Abstract]
 
Share-Based Compensation

Note 14. Share-Based Compensation

Donnelley Financial’s Stock and Incentive Programs for Employees and Directors

The Company’s share-based compensation plan under which it may grant future awards, the 2016 Donnelley Financial Solutions, Inc. Performance Incentive Plan (“2016 PIP”), was approved by the Board of Directors to provide incentives to key employees of the Company. Awards under the 2016 PIP may include, cash or stock bonuses, stock options, stock appreciation rights, restricted stock or restricted stock units. In addition, non-employee members of the Board of Directors may receive awards under the 2016 PIP. There were 3.5 million shares of common stock reserved and authorized for issuance under the 2016 PIP. At December 31, 2017, there were 2.0 million shares of common stock authorized and available for grant under the 2016 PIP.

 

Impact of the Separation from RRD

Prior to the Separation, RRD maintained an incentive stock program for the benefit of its officers, directors and certain employees, including certain Donnelley Financial employees.  RRD’s share-based compensation programs in which Donnelley Financial employees participated included RSUs.

In connection with the Separation, as of October 1, 2016, employee stock options and restricted stock units (“RSUs”) were adjusted and converted into new equity awards of Donnelley Financial, RRD and/or LSC using a 10-day volume weighted average share price of Donnelley Financial, RRD and LSC, as described in the Separation and Distribution Agreement. Converted awards retained the same vesting schedule and expiration date of the original awards. In addition, performance-based awards granted under RRD were converted into RSUs of Donnelley Financial, RRD and/or LSC (with satisfaction of performance conditions determined through the Separation Date) and remain subject to time-based vesting for the remainder of the applicable performance period. All equity awards converted upon Separation were authorized for issuance under the 2016 PIP. In periods following the Separation, the Company records share-based compensation expense for its employees’ equity awards that were converted into Donnelley Financial, RRD and/or LSC equity awards.

The rights granted to the recipient of RRD RSU awards generally accrue ratably over the restriction or vesting period, which is generally four years. RRD also granted RSU awards which cliff vest three years from the grant date.  RSU awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control of RRD. The Company records compensation expense of RSU awards based on the fair market value of the awards at the date of grant ratably over the period during which the restrictions lapse. Dividends are not paid on RSUs.

Share-based compensation expense

For all share-based awards granted to employees and directors following the Separation, including stock options, RSUs, performance based restricted stock and performance share units (“PSUs”), the Company recognizes compensation expense based on estimated grant date fair values based on certain assumptions as of the grant date. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover within the specific employee groups receiving each type of award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. The Company recognizes compensation costs for RSUs expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years. Compensation expense for performance based restricted stock awards granted in 2016, which vest on a graded basis, is recognized utilizing a graded vesting schedule. Compensation expense for performance based restricted stock awards and PSUs granted in 2017, which cliff vest, is recognized on a straight-line basis over the performance period of the award. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of four years.

The stock options, RSUs, performance based restricted stock and PSUs granted during 2017 are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee or a change in control of the Company. In addition, upon a change in control of the Company, PSUs will be measured for attainment of the performance metrics as of the end of the Company’s fiscal quarter ending immediately prior to the fiscal quarter in which the change in control took place and the performance based restricted stock will be measured at 100% attainment of the target performance metrics.  Both awards will remain subject to time based vesting until the end of the vesting period; provided that the award will vest in full if, within three months prior to or two years after the date of the change in control of the Company, the grantee’s employment is terminated without cause by the Company or for good reason by the grantee.

In periods prior to the Separation, share-based compensation expense includes expense attributable to the Company based on the award terms previously granted to the Company’s employees and an allocation of compensation expense for RRD’s corporate and shared functional employees. As those share-based compensation plans are RRD’s plans, the amounts have been recognized through net parent company investment on the combined balance sheets.

Total compensation expense related to all share-based compensation plans was $6.8 million, $2.5 million and $1.6 million for years ended December 31, 2017, 2016 and 2015, respectively. The income tax benefit related to share-based compensation expense was $3.0 million, $1.0 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, $10.4 million of total unrecognized compensation expense related to share-based compensation plans is expected to be recognized over a weighted-average period of 2.1 years.

During the first quarter of 2017, the Company adopted ASU 2016-09, which identifies areas of simplification for several aspects of accounting for share-based payment transactions. The adoption of ASU 2016-09 represents a change in accounting principle. The Company has adopted all applicable aspects of this guidance on a prospective basis.

ASU 2016-09 requires all excess tax benefits and tax deficiencies to be recognized as discrete items within income tax expense or benefit in the income statement in the reporting period in which they occur. As a result of this change, excess tax benefits and tax deficiencies are now excluded from the calculation of assumed proceeds when using the treasury stock method in calculating diluted earnings per share. ASU 2016-09 also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity.

ASU 2016-09 allows an employer with a statutory income tax withholding obligation to withhold shares with a fair value up to the amount of tax owed using the maximum statutory tax rate in the employee’s applicable jurisdiction(s). ASU 2016-09 requires companies to apply this guidance to outstanding liability awards at the date of adoption using a modified retrospective transition method, with a cumulative-effect adjustment to retained earnings. The Company does not have any outstanding share-based awards classified as liabilities. As such, no adjustment was required. ASU 2016-09 requires cash paid by an employer to taxing authorities when directly withholding shares for tax withholding purposes to be classified as a financing activity on the statement of cash flows.  The change in classification is to be applied retrospectively. However, an adjustment to prior periods is not required because the Company did not have such tax withholding obligations during the prior periods.

ASU 2016-09 requires a company to make an accounting policy election to account for forfeitures of share-based payments by either estimating the number of awards expected to vest or recognizing forfeitures when they occur. In accordance with ASU 2016-09, the Company has made an accounting policy election to estimate forfeitures and recognize compensation expense based on the number of awards expected to vest.

Stock Options

The Company granted 177,600 options, with a weighted-average grant date fair market value of $7.77, during the year ended December 31, 2017. There were no options granted during the years ended December 31, 2016 and 2015. The fair market value of each stock option award was estimated using the Black-Scholes-Merton option pricing model and the Company used the following methods to determine its underlying assumptions:

 

Expected volatility was estimated based on a weighted-average of historical volatilities for certain of the Company’s competitors

 

The risk-free interest rate was based on the U.S Treasury yield curve in effect on the date of grant

 

The expected term of options granted was based on the simplified method of using the mid-point between the vesting term and the original contractual term

 

The expected dividend yield was based on the Company’s current dividend rate

The weighted-average assumptions used to determine the weighted-average fair market value of the stock options granted during the year ended December 31, 2017 were as follows:

 

 

2017

 

Expected volatility

 

30.71

%

Risk-free interest rate

 

2.17

%

Expected life (years)

6.25

 

Expected dividend yield

 

0.00

%

 

Stock option awards outstanding as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Remaining

 

 

Aggregate

 

 

Shares Under

 

 

Average

 

 

Contractual

 

 

Intrinsic

 

 

Option

 

 

Exercise

 

 

Term

 

 

Value

 

 

(thousands)

 

 

Price

 

 

(years)

 

 

(millions)

 

Outstanding at December 31, 2016

 

299

 

 

$

21.48

 

 

 

3.5

 

 

$

1.4

 

Granted

 

178

 

 

 

22.37

 

 

 

9.2

 

 

 

 

 

Exercised

 

(16

)

 

 

12.67

 

 

 

 

 

 

 

 

 

Cancelled/forfeited/expired

 

(2

)

 

 

22.30

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

459

 

 

 

22.13

 

 

 

5.1

 

 

 

0.8

 

Vested and expected to vest at December 31, 2017

 

448

 

 

 

22.13

 

 

 

5.0

 

 

 

0.8

 

Exercisable at December 31, 2017

 

104

 

 

$

11.95

 

 

 

1.2

 

 

 

0.8

 

 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on December 31, 2017 and December 31, 2016, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on December 31, 2017 and December 31, 2016. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised for the year ended December 31, 2017 was $0.1 million and was de minimis for the year ended December 31, 2016. There were no excess tax benefits on stock option exercises for the years ended December 31, 2017 and 2016.

Compensation expense related to stock options was $0.3 million for the year ended December 31, 2017. As of December 31, 2017, $1.1 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 3.2 years. Compensation expense related to stock options for the years ended December 31, 2016 and 2015 was de minimis.

Restricted Stock Units

Nonvested restricted stock unit awards as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

Weighted Average

 

 

Shares

 

 

Grant Date

 

 

(thousands)

 

 

Fair Value

 

Nonvested at December 31, 2016

 

436

 

 

$

25.28

 

Granted

 

276

 

 

 

22.41

 

Vested

 

(108

)

 

 

 

 

Forfeited

 

(6

)

 

 

22.35

 

Nonvested at December 31, 2017

 

598

 

 

$

23.48

 

 

Compensation expense related to RSUs was $4.1 million, $1.9 million and $0.8 million for the years ended December 31, 2017, 2016 and 2015 respectively. As of December 31, 2017, there was $5.4 million of unrecognized share-based compensation expense related to 0.6 million restricted stock unit awards, with a weighted-average grant date fair value of $23.48, that are expected to vest over a weighted-average period of 1.9 years. The fair value of these awards was determined based on the Company’s stock price on the grant date, as the Company currently does not anticipate paying any cash dividends in the foreseeable future.

Restricted Stock

Nonvested restricted stock awards as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

Weighted Average

 

 

Shares

 

 

Grant Date

 

 

(thousands)

 

 

Fair Value

 

Nonvested at December 31, 2016

 

156

 

 

$

24.75

 

Granted

 

129

 

 

 

22.35

 

Nonvested at December 31, 2017

 

285

 

 

$

23.66

 

During the year ended December 31, 2017, the Company granted 129,400 shares of restricted stock to certain executives, payable upon the achievement of certain performance metrics. The fair value of these awards was determined based on the Company’s stock price on the grant date. The performance period for the restricted stock awarded is January 1, 2017 through December 31, 2019.  The total potential payout for awards granted during the year ended December 31, 2017 range from zero to 129,400 shares, should certain performance targets be achieved.  The maximum potential payout of 156,169 shares was achieved as of December 31, 2017 for the restricted stock awards granted during the year ended December 31, 2016.

Compensation expense for the restricted stock awards is currently being recognized based on 100% attainment of the targeted performance metrics for the restricted stock awards granted in 2017 and is being recognized based on 100% actual achievement of the performance metrics for the restricted stock awards granted in 2016. Compensation expense for restricted stock awards was $2.2 million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017, there was $3.3 million of unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted average period of 1.9 years.

 

Performance Share Units

During the year ended December 31, 2017, 37,100 performance share units were granted to certain executive officers and senior management, payable upon the achievement of certain established performance targets. The performance period for the shares awarded is January 1, 2017 through December 31, 2019. Distributions under these awards are payable at the end of the performance period in common stock or cash, at the Company’s discretion. The total potential payout for awards granted during the year ended December 31, 2017 range from zero to 55,650 shares, should certain performance targets be achieved. The fair value of these awards was determined based on the Company’s stock price on the grant date.

Compensation expense for the PSUs granted in 2017 is currently being recognized based on 100% attainment of the targeted performance metrics or 37,100 shares. Compensation expense related to PSUs was $0.2 million for the year ended December 31, 2017. As of December 31, 2017, there was $0.6 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted average period of 2.2 years.

 
 

Component: (Network and Table)
Network
100220 - Disclosure - Preferred Stock
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePreferredStock)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Equity [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Equity [Abstract]
 
Preferred Stock

Note 15. Preferred Stock

The Company has one million shares of $0.01 par value preferred stock authorized for issuance. The Board of Directors may divide the preferred stock into one or more series and fix the redemption, dividend, voting, conversion, sinking fund, liquidation and other rights. The Company has no present plans to issue any preferred stock.  

 
 

Component: (Network and Table)
Network
100230 - Disclosure - Comprehensive Income
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureComprehensiveIncome)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Equity [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Equity [Abstract]
 
Comprehensive Income

Note 16. Comprehensive Income

The components of other comprehensive income and income tax expense allocated to each component for the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Amount

 

 

Expense

 

 

Amount

 

 

Amount

 

 

Expense

 

 

Amount

 

 

Amount

 

 

Expense

 

 

Amount

 

Translation adjustments

$

4.4

 

 

$

 

 

$

4.4

 

 

$

(0.1

)

 

$

 

 

$

(0.1

)

 

$

(7.5

)

 

$

 

 

$

(7.5

)

Adjustment for net periodic pension plan and other postretirement benefits plan cost

 

(0.6

)

 

 

(0.1

)

 

 

(0.7

)

 

 

11.9

 

 

 

4.8

 

 

 

7.1

 

 

 

45.9

 

 

 

18.4

 

 

 

27.5

 

Other comprehensive income

$

3.8

 

 

$

(0.1

)

 

$

3.7

 

 

$

11.8

 

 

$

4.8

 

 

$

7.0

 

 

$

38.4

 

 

$

18.4

 

 

$

20.0

 

 

The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2017, 2016 and 2015:

 

 

Pension and Other

Postretirement

Benefits Plan Cost

 

 

Translation

Adjustments

 

 

Total

 

Balance at January 1, 2015

$

(665.2

)

 

$

(8.5

)

 

$

(673.7

)

Other comprehensive income (loss) before reclassifications

 

5.7

 

 

 

(7.5

)

 

 

(1.8

)

Amounts reclassified from accumulated other comprehensive loss

 

21.8

 

 

 

 

 

 

21.8

 

Transfer of pension plan to parent company, net

 

637.7

 

 

 

 

 

 

637.7

 

Net change in accumulated other comprehensive loss

 

665.2

 

 

 

(7.5

)

 

 

657.7

 

Balance at December 31, 2015

$

 

 

$

(16.0

)

 

$

(16.0

)

Other comprehensive income (loss) before reclassifications

 

6.7

 

 

 

(0.1

)

 

 

6.6

 

Amounts reclassified from accumulated other comprehensive loss

 

0.4

 

 

 

 

 

 

0.4

 

Transfer of pension plan to parent company, net

 

(59.3

)

 

 

 

 

 

(59.3

)

Net change in accumulated other comprehensive loss

 

(52.2

)

 

 

(0.1

)

 

 

(52.3

)

Balance at December 31, 2016

$

(52.2

)

 

$

(16.1

)

 

$

(68.3

)

Other comprehensive (loss) income before reclassifications

 

(2.1

)

 

 

4.4

 

 

 

2.3

 

Amounts reclassified from accumulated other comprehensive loss

 

1.4

 

 

 

 

 

 

1.4

 

Net change in accumulated other comprehensive loss

 

(0.7

)

 

 

4.4

 

 

 

3.7

 

Balance at December 31, 2017

$

(52.9

)

 

$

(11.7

)

 

$

(64.6

)

 

Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classification in the

 

 

 

 

 

 

 

 

Consolidated and Combined

 

2017

 

 

2016

 

 

2015

 

 

Statements of Operations

Amortization of pension and other postretirement benefits plan cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial income

$

2.1

 

 

$

0.7

 

 

$

36.4

 

 

(a)

Reclassifications before tax

 

2.1

 

 

 

0.7

 

 

 

36.4

 

 

 

Income tax expense

 

0.7

 

 

 

0.3

 

 

 

14.6

 

 

 

Reclassifications, net of tax

$

1.4

 

 

$

0.4

 

 

$

21.8

 

 

 

 

(a)

These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to Donnelley Financial in periods prior to the Separation, and recognized in cost of sales and selling, general and administrative expenses in the consolidated and combined statements of operations (see Note 10, Retirement Plans).

 
 

Component: (Network and Table)
Network
100240 - Disclosure - Segment Information
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSegmentInformation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Segment Reporting [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Segment Reporting [Abstract]
 
Segment Information

Note 17. Segment Information

The Company’s segments are summarized below:

United States

The U.S. segment serves capital market and investment market clients in the U.S. by delivering products and services to help create, manage, and deliver, accurate and timely financial communications to investors and regulators. The Company also provides virtual data rooms to facilitate the deal management requirements of capital markets and mergers and acquisitions transactions, and provides data and analytics services that help professionals uncover intelligence from disclosures contained within public filings made with the SEC. The U.S. segment also includes language solutions capabilities, through which the Company can translate documents and create content in up to 190 different languages for its clients, and commercial print.

International

The International segment includes the Company’s operations in Asia, Europe, Canada and Latin America. The international business is primarily focused on working with international capital markets clients on capital markets offerings and regulatory compliance related activities into or within the United States. In addition, the international segment provides language translation services and shareholder communication services to investment market clients.

Corporate

Corporate consists of unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, communications and certain facility costs.  In addition, certain costs and earnings of employee benefit plans, such as pension and other postretirement benefit plan income and allocated costs for share-based compensation, are included in Corporate and not allocated to the operating segments.

Information by Segment

The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated and combined financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

856.6

 

 

$

(8.7

)

 

$

847.9

 

 

$

127.6

 

 

$

664.7

 

 

$

38.2

 

 

$

24.7

 

International

 

160.8

 

 

 

(3.8

)

 

 

157.0

 

 

 

7.2

 

 

 

90.4

 

 

 

6.3

 

 

 

1.4

 

Total operating segments

 

1,017.4

 

 

 

(12.5

)

 

 

1,004.9

 

 

 

134.8

 

 

 

755.1

 

 

 

44.5

 

 

 

26.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(35.8

)

 

 

138.4

 

 

 

 

 

 

1.7

 

Total operations

$

1,017.4

 

 

$

(12.5

)

 

$

1,004.9

 

 

$

99.0

 

 

$

893.5

 

 

$

44.5

 

 

$

27.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

852.6

 

 

$

(7.4

)

 

$

845.2

 

 

$

118.4

 

 

$

672.2

 

 

$

34.5

 

 

$

20.5

 

International

 

142.9

 

 

 

(4.6

)

 

 

138.3

 

 

 

9.6

 

 

 

93.7

 

 

 

4.6

 

 

 

2.6

 

Total operating segments

 

995.5

 

 

 

(12.0

)

 

 

983.5

 

 

 

128.0

 

 

 

765.9

 

 

 

39.1

 

 

 

23.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(22.0

)

 

 

213.0

 

 

 

4.2

 

 

 

3.1

 

Total operations

$

995.5

 

 

$

(12.0

)

 

$

983.5

 

 

$

106.0

 

 

$

978.9

 

 

$

43.3

 

 

$

26.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

912.0

 

 

$

(11.2

)

 

$

900.8

 

 

$

160.3

 

 

$

664.0

 

 

$

37.0

 

 

$

25.9

 

International

 

151.1

 

 

 

(2.4

)

 

 

148.7

 

 

 

15.3

 

 

 

86.8

 

 

 

4.4

 

 

 

1.2

 

Total operating segments

 

1,063.1

 

 

 

(13.6

)

 

 

1,049.5

 

 

 

175.6

 

 

 

750.8

 

 

 

41.4

 

 

 

27.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(2.9

)

 

 

66.8

 

 

 

0.3

 

 

 

 

Total operations

$

1,063.1

 

 

$

(13.6

)

 

$

1,049.5

 

 

$

172.7

 

 

$

817.6

 

 

$

41.7

 

 

$

27.1

 

 

Corporate assets primarily consisted of the following items at December 31, 2017 and 2016:

 

 

 

2017

 

 

2016

 

Cash and cash equivalents

$

43.0

 

 

$

25.5

 

Software, net

 

40.6

 

 

 

41.0

 

Deferred income tax assets, net of valuation allowances

 

18.7

 

 

 

34.2

 

Receivable from R.R. Donnelley*

 

 

 

 

76.0

 

 

* Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.

 

Restructuring, impairment and other charges by segment for 2017, 2016, and 2015 are described in Note 3, Restructuring, Impairment and Other Charges.

 

 
 

Component: (Network and Table)
Network
100250 - Disclosure - Geographic Area and Products and Services Information
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGeographicAreaAndProductsAndServicesInformation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Segment Reporting [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Segment Reporting [Abstract]
 
Geographic Area and Products and Services Information

Note 18. Geographic Area and Products and Services Information

The table below presents net sales and long-lived assets by geographic region for the years ended December 31, 2017, 2016 and 2015.

 

 

U.S.

 

 

Europe

 

 

Asia

 

 

Canada

 

 

Other

 

 

Consolidated

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

847.9

 

 

$

70.6

 

 

$

47.2

 

 

$

36.0

 

 

$

3.2

 

 

$

1,004.9

 

Long-lived assets (a)

 

107.2

 

 

 

4.5

 

 

 

1.6

 

 

 

0.6

 

 

 

 

 

 

113.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

845.2

 

 

$

62.4

 

 

$

39.2

 

 

$

32.1

 

 

$

4.6

 

 

$

983.5

 

Long-lived assets (a)

 

107.4

 

 

 

3.1

 

 

 

0.6

 

 

 

0.5

 

 

 

 

 

 

111.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

900.8

 

 

$

70.0

 

 

$

49.3

 

 

$

23.7

 

 

$

5.7

 

 

$

1,049.5

 

Long-lived assets (a)

 

96.0

 

 

 

2.7

 

 

 

0.6

 

 

 

0.8

 

 

 

 

 

 

100.1

 

 

(a)

Includes net property, plant and equipment, net software and other noncurrent assets.

The following table summarizes net sales for services and products for the years ended December 31, 2017, 2016 and 2015.

 

 

2017

Net Sales

 

 

2016

Net Sales

 

 

2015

Net Sales

 

Capital Markets

$

396.7

 

 

$

387.6

 

 

$

431.0

 

Investment Markets

 

162.5

 

 

 

143.2

 

 

 

139.1

 

Language Solutions and other

 

72.9

 

 

 

67.8

 

 

 

58.5

 

Total services

 

632.1

 

 

 

598.6

 

 

 

628.6

 

Investment Markets

$

197.9

 

 

$

199.1

 

 

$

204.0

 

Capital Markets

 

154.9

 

 

 

168.5

 

 

 

193.9

 

Language Solutions and other

 

20.0

 

 

 

17.3

 

 

 

23.0

 

Total products

 

372.8

 

 

 

384.9

 

 

 

420.9

 

Total net sales

$

1,004.9

 

 

$

983.5

 

 

$

1,049.5

 

 
 

Component: (Network and Table)
Network
100260 - Disclosure - Related Parties
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRelatedParties)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Related Party Transactions [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Related Party Transactions [Abstract]
 
Related Parties

Note 19.  Related Parties

On March 28, 2017, RRD completed the sale of 6.2 million shares of LSC common stock (RRD’s remaining ownership stake in LSC) in an underwritten public offering. As a result, beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party of the Company and the amounts disclosed related to LSC are presented through March 31, 2017 only.

On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock.  RRD retained approximately 0.1 million shares of the Company’s common stock which RRD sold on August 4, 2017. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party and the amounts disclosed related to RRD are presented through June 30, 2017 only.

Transition Services Agreements

In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively, for up to 24 months following the Separation. These services include, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization.  

Commercial Arrangements

The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize financial communication software and services that the Company provides to all of its clients.

Stockholder and Registration Rights Agreement

The Company and RRD entered into a Stockholder and Registration Rights Agreement with respect to the Company’s common stock retained by RRD pursuant to which the Company agrees that, upon the request of RRD, the Company will use its reasonable best efforts to effect the registration under applicable federal and state securities laws of the shares of the Company’s common stock retained by RRD after the Separation. In addition, RRD granted the Company a proxy to vote the shares of the Company’s common stock that RRD retained immediately after the Separation in proportion to the votes cast by the Company’s other stockholders. This proxy, however, will be automatically revoked as to a particular share upon any sale or transfer of such share from RRD to a person other than RRD, and neither the voting agreement nor the proxy will limit or prohibit any such sale or transfer.

On March 24, 2017, pursuant to the Stockholder and Registration Rights Agreement, the Company filed a Registration Statement on Form S-1 to register the offering and sale of the Company’s common stock retained by RRD. The Registration Statement on Form S-1, as amended, was declared effective by the SEC on June 13, 2017. On June 21, 2017, RRD completed the sale of approximately 6.1 million shares of the Company’s common stock in an underwritten public offering. Upon consummation of the offering, RRD retained approximately 0.1 million shares of the Company’s common stock which were subsequently sold by RRD on August 4, 2017.

Sublease Agreement

In connection with the Separation, the Company assumed an operating lease through 2024 for the Company’s headquarters.  There is a related non-cancelable sublease rental to RRD for the same period.  The Company remains secondarily liable under this lease in the event that the sub-lessee defaults under the sublease terms. The Company does not believe that material payments will be required as a result of the secondary liability provisions of the primary lease agreement.

 

Related Party Receivables/Payables

Pursuant to the Separation and Distribution Agreement, the Company received a cash payment of $68.0 million from RRD on April 3, 2017. The proceeds were used to reduce outstanding debt under the Term Loan Credit Facility. The Company has other amounts due to or from RRD in the normal course of business. The Company had $96.0 million of receivables from RRD and $27.1 million of payables to RRD included in the consolidated balance sheet at December 31, 2016.  

 

Allocations from RRD

Prior to the Separation RRD provided Donnelley Financial with certain services, which include, but are not limited to information technology, finance, legal, human resources, internal audit, treasury, tax, investor relations and executive oversight. The financial information in these consolidated and combined financial statements does not necessarily include all the expenses that would have been incurred had Donnelley Financial been a separate, standalone entity for all periods presented. Prior to the Separation RRD charged Donnelley Financial for these services based on direct usage when possible. When specific identification was not practicable, the pro rata basis of revenue or employee headcount, or some other measure was used. These allocations were reflected as follows in the unaudited consolidated and combined financial statements:

 

 

2016

 

 

2015

 

Costs of goods sold allocation

$

28.0

 

 

$

38.5

 

Selling, general and administrative allocation

 

129.4

 

 

 

168.3

 

Depreciation and amortization

 

15.2

 

 

 

21.4

 

Total allocations from RRD

$

172.6

 

 

$

228.2

 

 

The Company considers the expense methodology and results to be reasonable for all periods presented.  However, these allocations may not be indicative of the actual expenses that the Company would have incurred as an independent public company or the costs it may incur in the future.

Related Party Revenues

Donnelley Financial generates a portion of net revenue from sales to RRD’s subsidiaries. Net revenues from sales to RRD and affiliates of $8.3 million for the six months ended June 30, 2017 and $19.4 million and $7.8 million for the years ended December 31, 2016 and 2015, respectively, were included in the consolidated and combined statement of operations.

Related Party Purchases

Donnelley Financial utilizes RRD for freight and logistics and services as well as certain production of printed products.  Cost of sales of $32.3 million for the six months ended June 30, 2017 and $57.9 million and $68.3 million for the years ended December 31, 2016 and 2015, respectively, were included in the consolidated and combined statement of operations for these purchases.

Donnelley Financial also utilizes RRD’s business process outsourcing business for certain composition, XBRL and other functions.  Cost of sales of $19.5 million for the six months ended June 30, 2017 and $37.8 million and $40.4 million for the years ended December 31, 2016 and 2015, respectively, were included in the consolidated and combined statement of operations for these purchases. 

Share-Based Compensation Prior to Separation

Prior to the Separation, certain Donnelley Financial employees participated in RRD’s share-based compensation plans, the costs of which have been allocated to Donnelley Financial and recorded in selling, general and administrative expenses in the consolidated and combined statement of operations. Share-based compensation costs allocated to the Company were $1.2 million for the nine months ended September 30, 2016 and $1.6 million for the year ended December 31, 2015. 

Retirement Plans Prior to Separation

Prior to the Separation, Donnelley Financial employees participated in pension and other postretirement plans sponsored by RRD.  These costs are reflected in the Company’s cost of sales and selling, general and administrative expenses in the consolidated and combined statements of operations.  

On October 1, 2016, Donnelley Financial recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. Refer to Note 10, Retirement Plans, for further details regarding the Company’s pension and other postretirement benefit plans.

Centralized Cash Management Prior to Separation

RRD used a centralized approach to cash management and financing of operations.  Prior to the Separation, the majority of the Company’s foreign subsidiaries were party to RRD’s international cash pooling arrangements to maximize the availability of cash for general operating and investing purposes.  As part of RRD’s centralized cash management process, cash balances were swept regularly from the Company’s accounts.  

Debt

RRD’s third party debt and related interest expense have not been allocated to the Company for any of the periods presented as the Company was not the legal obligor of the debt and the borrowings were not directly related to the Company’s business.

 

 
 

Component: (Network and Table)
Network
100270 - Disclosure - New Accounting Pronouncements
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureNewAccountingPronouncements)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accounting Changes And Error Corrections [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accounting Changes And Error Corrections [Abstract]
 
New Accounting Pronouncements

Note 20. New Accounting Pronouncements  

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued Accounting Standards Update No. 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which simplifies the accounting for goodwill impairment. ASU 2017-04 requires entities to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (Step 1 under the current impairment test). The standard eliminates Step 2 from the current goodwill impairment test, which included determining the implied fair value of goodwill and comparing it with the carrying amount of that goodwill. ASU 2017-04 must be applied prospectively and is effective in the first quarter of 2020. Early adoption is permitted. The Company early adopted the standard in the first quarter of 2017.

Recently Issued Accounting Pronouncements

In February 2018, the FASB issued Accounting Standards Update No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Income Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Act to retained earnings. ASU 2018-02 may be applied either in the period of adoption or retrospectively to each period in which the effect of the Tax Act is recognized. ASU 2018-02 is effective in the first quarter of 2019. Early adoption is permitted. The Company is evaluating the impact of ASU 2018-02.

In March 2017, the FASB issued Accounting Standards Update No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which requires an employer to report the service cost component of net periodic benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period. The other components of net periodic benefit cost will be presented in the income statement separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. ASU 2017-07 must be applied retrospectively and is effective in the first quarter of 2018. Early adoption is permitted; however the Company plans to adopt the standard in the first quarter of 2018. Refer to Note 10, Retirement Plans, for disclosure of pension income for the years ended December 31, 2017 and 2016 which will be reclassified to other income upon adoption of the standard.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on the balance sheet but recognize expense on the income statement in a manner similar to current accounting. For lessors, ASU 2016-02 also modifies the classification criteria and the accounting for sales-type and direct financing leases. The standard requires a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements and is effective in the first quarter of 2019. Early adoption of ASU 2016-02 is permitted; however the Company plans to adopt the standard in the first quarter of 2019. The Company is evaluating the impact of ASU 2016-02.

In May 2014, the FASB issued ASU 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. ASU 2014-09 also requires additional quantitative and qualitative disclosures. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09 to January 1, 2018. Early adoption of ASU 2014-09 is permitted; however, the Company will adopt the standard in the first quarter of 2018. The standard allows the option of either a full retrospective adoption, meaning the standard is applied to all periods presented, or a modified retrospective adoption, meaning the standard is applied only to the most current period. The Company will apply the modified retrospective approach when adopting the standard in 2018.

The Company evaluated the impacts of ASU 2014-09 and does not expect a material change in the timing of revenue recognition for the majority of the Company’s revenue.  However, under ASU 2014-09, revenue recognition will be accelerated for certain arrangements with multiple performance obligations as revenue will be recognized upon the completion of each performance obligation rather than upon final delivery of the printed product.  For example, for an arrangement which includes the completion of a regulatory filing and the printing and distribution of the related document, some revenue and costs will be recognized upon the completion of the regulatory filing, with the remaining revenue and costs recognized upon the completion of the printing and distribution of the product.  The Company also expects to accelerate the recognition of revenue for certain inventory which has been invoiced but not yet shipped at the customer’s request. Additionally, certain revenues related to virtual data room services will be deferred as a result of the new standard. The net impact of these changes will result in an opening transition adjustment to retained earnings upon the adoption of ASU 2014-09 for the amounts that would have been recognized in 2017 under the new standard.

The Company will provide expanded footnote disclosure related to revenue recognition consistent with the requirements of ASU 2014-09 in its Quarterly Report on Form 10-Q for the period ending March 31, 2018.  The Company has also implemented the necessary processes and internal controls to support the new revenue recognition standard and fulfill its external reporting requirements.

 
 

Component: (Network and Table)
Network
100280 - Disclosure - Guarantor Financial Information
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformation)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
 
Guarantor Financial Information

Note 21. Guarantor Financial Information

 

As described in Note 12, Debt, on September 30, 2016, the Company issued the Notes.  The Guarantors of the Notes, Donnelley Financial, LLC and DFS International Holding, Inc., entered into an agreement pursuant to which each agreed to guarantee the Company’s obligations under the Notes. All guarantees are full and unconditional and joint and several. The Guarantors are 100% directly owned subsidiaries of the Company.

The guarantee of the Notes by a subsidiary guarantor will be automatically released under certain situations, including upon the sale or disposition of such subsidiary guarantor to a person that is not Donnelley Financial or a subsidiary guarantor of the notes, the liquidation or dissolution of such subsidiary guarantor, and if such subsidiary guarantor is released from its guarantee obligations under the Company’s Credit Facilities.

The following tables set forth condensed consolidating statements of income for the years ended December 31, 2017, 2016, and 2015, condensed consolidating statements of financial position as of December 31, 2017 and December 31, 2016, and condensed consolidating statements of cash flows for the years ended December 31, 2017, 2016, and 2015. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. For purposes of the tables below, the Company is referred to as “Parent” and the Guarantors are referred to as “Guarantor Subsidiaries.”

 


 

Condensed Consolidating Statements of Operations

Year Ended December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

518.5

 

 

$

121.7

 

 

$

(8.1

)

 

$

632.1

 

Products net sales

 

 

 

 

338.1

 

 

 

39.1

 

 

 

(4.4

)

 

 

372.8

 

Total net sales

 

 

 

 

856.6

 

 

 

160.8

 

 

 

(12.5

)

 

 

1,004.9

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

257.3

 

 

 

78.8

 

 

 

(7.4

)

 

 

328.7

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)*

 

 

 

 

18.4

 

 

 

1.1

 

 

 

 

 

 

19.5

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

221.5

 

 

 

24.5

 

 

 

(5.1

)

 

 

240.9

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)*

 

 

 

 

30.1

 

 

 

2.2

 

 

 

 

 

 

32.3

 

Total cost of sales

 

 

 

 

527.3

 

 

 

106.6

 

 

 

(12.5

)

 

 

621.4

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

194.1

 

 

 

38.8

 

 

 

 

 

 

232.9

 

Restructuring, impairment and other charges-net

 

 

 

 

4.9

 

 

 

2.2

 

 

 

 

 

 

7.1

 

Depreciation and amortization

 

 

 

 

38.2

 

 

 

6.3

 

 

 

 

 

 

44.5

 

Income from operations

 

 

 

 

92.1

 

 

 

6.9

 

 

 

 

 

 

99.0

 

Interest expense (income)-net

 

43.1

 

 

 

(0.1

)

 

 

(0.1

)

 

 

 

 

 

42.9

 

Investment and other income-net

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Earnings (loss) before income taxes and equity in net income of subsidiaries

 

(43.1

)

 

 

92.2

 

 

 

7.1

 

 

 

 

 

 

56.2

 

Income tax (benefit) expense

 

(16.7

)

 

 

60.6

 

 

 

2.6

 

 

 

 

 

 

46.5

 

Earnings (loss) before equity in net income of subsidiaries

 

(26.4

)

 

 

31.6

 

 

 

4.5

 

 

 

 

 

 

9.7

 

Equity in net income of subsidiaries

 

36.1

 

 

 

4.5

 

 

 

 

 

 

(40.6

)

 

 

0.0

 

Net earnings

$

9.7

 

 

$

36.1

 

 

$

4.5

 

 

$

(40.6

)

 

$

9.7

 

Comprehensive income

$

13.4

 

 

$

39.8

 

 

$

8.9

 

 

$

(48.7

)

 

$

13.4

 

    

* Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the 2017 amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only.

 

Condensed Consolidating Statements of Operations

Year Ended December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

502.2

 

 

$

104.1

 

 

$

(7.7

)

 

$

598.6

 

Products net sales

 

 

 

 

350.4

 

 

 

38.8

 

 

 

(4.3

)

 

 

384.9

 

Total net sales

 

 

 

 

852.6

 

 

 

142.9

 

 

 

(12.0

)

 

 

983.5

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

236.0

 

 

 

68.2

 

 

 

(7.1

)

 

 

297.1

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

35.6

 

 

 

2.2

 

 

 

 

 

 

37.8

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

207.0

 

 

 

24.1

 

 

 

(4.9

)

 

 

226.2

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

57.3

 

 

 

0.6

 

 

 

 

 

 

57.9

 

Total cost of sales

 

 

 

 

535.9

 

 

 

95.1

 

 

 

(12.0

)

 

 

619.0

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

176.8

 

 

 

33.0

 

 

 

 

 

 

209.8

 

Restructuring, impairment and other charges-net

 

 

 

 

4.8

 

 

 

0.6

 

 

 

 

 

 

5.4

 

Depreciation and amortization

 

 

 

 

38.6

 

 

 

4.7

 

 

 

 

 

 

43.3

 

Income from operations

 

 

 

 

96.5

 

 

 

9.5

 

 

 

 

 

 

106.0

 

Interest expense-net

 

11.7

 

 

 

 

 

 

 

 

 

 

 

 

11.7

 

Earnings (loss) before income taxes and equity in net income of subsidiaries

 

(11.7

)

 

 

96.5

 

 

 

9.5

 

 

 

 

 

 

94.3

 

Income tax (benefit) expense

 

(4.3

)

 

 

38.5

 

 

 

1.0

 

 

 

 

 

 

35.2

 

Earnings (loss) before equity in net income of subsidiaries

 

(7.4

)

 

 

58.0

 

 

 

8.5

 

 

 

 

 

 

59.1

 

Equity in net income of subsidiaries

 

66.5

 

 

 

8.5

 

 

 

 

 

 

(75.0

)

 

 

 

Net earnings (loss)

$

59.1

 

 

$

66.5

 

 

$

8.5

 

 

$

(75.0

)

 

$

59.1

 

Comprehensive income (loss)

$

66.1

 

 

$

73.5

 

 

$

8.6

 

 

$

(82.1

)

 

$

66.1

 

 

Condensed Consolidating Statements of Operations

Year Ended December 31, 2015

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

530.2

 

 

$

106.6

 

 

$

(8.2

)

 

$

628.6

 

Products net sales

 

 

 

 

381.8

 

 

 

44.5

 

 

 

(5.4

)

 

 

420.9

 

Total net sales

 

 

 

 

912.0

 

 

 

151.1

 

 

 

(13.6

)

 

 

1,049.5

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

230.7

 

 

 

68.4

 

 

 

(7.2

)

 

 

291.9

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

38.1

 

 

 

2.3

 

 

 

 

 

 

40.4

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

208.8

 

 

 

28.5

 

 

 

(6.4

)

 

 

230.9

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

68.2

 

 

 

0.1

 

 

 

 

 

 

68.3

 

Total cost of sales

 

 

 

 

545.8

 

 

 

99.3

 

 

 

(13.6

)

 

 

631.5

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

168.1

 

 

 

31.1

 

 

 

 

 

 

199.2

 

Restructuring, impairment and other charges-net

 

 

 

 

3.5

 

 

 

0.9

 

 

 

 

 

 

4.4

 

Depreciation and amortization

 

 

 

 

37.3

 

 

 

4.4

 

 

 

 

 

 

41.7

 

Income from operations

 

 

 

 

157.3

 

 

 

15.4

 

 

 

0.0

 

 

 

172.7

 

Interest expense-net

 

 

 

 

1.1

 

 

 

 

 

 

 

 

 

1.1

 

Investment and other income-net

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Earnings before income taxes and equity in net income of subsidiaries

 

 

 

 

156.2

 

 

 

15.5

 

 

 

0.0

 

 

 

171.7

 

Income tax expense

 

 

 

 

63.8

 

 

 

3.6

 

 

 

 

 

 

67.4

 

Earnings before equity in net income of subsidiaries

 

 

 

 

92.4

 

 

 

11.9

 

 

 

0.0

 

 

 

104.3

 

Equity in net income of subsidiaries

 

104.3

 

 

 

11.9

 

 

 

 

 

 

(116.2

)

 

 

 

Net earnings (loss)

$

104.3

 

 

$

104.3

 

 

$

11.9

 

 

$

(116.2

)

 

$

104.3

 

Comprehensive income (loss)

$

124.3

 

 

$

124.3

 

 

$

4.4

 

 

$

(128.7

)

 

$

124.3

 

 

Condensed Consolidating Balance Sheet

December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

8.3

 

 

$

27.9

 

 

$

15.8

 

 

$

 

 

$

52.0

 

Receivables, less allowances

 

 

 

 

131.3

 

 

 

33.9

 

 

 

 

 

 

165.2

 

Intercompany receivables

 

 

 

 

146.4

 

 

 

 

 

 

(146.4

)

 

 

 

Intercompany short-term note receivable-net

 

 

 

 

 

 

 

30.0

 

 

 

(30.0

)

 

 

 

Inventories

 

 

 

 

21.3

 

 

 

2.0

 

 

 

 

 

 

23.3

 

Prepaid expenses and other current assets

 

37.1

 

 

 

14.8

 

 

 

2.8

 

 

 

(25.1

)

 

 

29.6

 

Total current assets

 

45.4

 

 

 

341.7

 

 

 

84.5

 

 

 

(201.5

)

 

 

270.1

 

Property, plant and equipment-net

 

 

 

 

31.2

 

 

 

3.5

 

 

 

 

 

 

34.7

 

Goodwill

 

 

 

 

429.2

 

 

 

18.2

 

 

 

 

 

 

447.4

 

Other intangible assets-net

 

 

 

 

32.4

 

 

 

7.5

 

 

 

 

 

 

39.9

 

Software-net

 

 

 

 

40.6

 

 

 

0.5

 

 

 

 

 

 

41.1

 

Deferred income taxes

 

 

 

 

40.5

 

 

 

3.4

 

 

 

(21.7

)

 

 

22.2

 

Other noncurrent assets

 

3.4

 

 

 

30.0

 

 

 

4.7

 

 

 

 

 

 

38.1

 

Investments in consolidated subsidiaries

 

728.4

 

 

 

85.2

 

 

 

 

 

 

(813.6

)

 

 

 

Total assets

$

777.2

 

 

$

1,030.8

 

 

$

122.3

 

 

$

(1,036.8

)

 

$

893.5

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

 

 

$

57.9

 

 

$

9.9

 

 

$

 

 

$

67.8

 

Intercompany payable

 

139.5

 

 

 

 

 

 

6.9

 

 

 

(146.4

)

 

 

 

Intercompany short-term note payable-net

 

30.0

 

 

 

 

 

 

 

 

 

(30.0

)

 

 

 

Accrued liabilities

 

 

 

 

127.6

 

 

 

16.7

 

 

 

(25.1

)

 

 

119.2

 

Total current liabilities

 

169.5

 

 

 

185.5

 

 

 

33.5

 

 

 

(201.5

)

 

 

187.0

 

Long-term debt

 

458.3

 

 

 

 

 

 

 

 

 

 

 

 

458.3

 

Deferred compensation liabilities

 

 

 

 

22.8

 

 

 

 

 

 

 

 

 

22.8

 

Pension and other postretirement benefits plan liabilities

 

 

 

 

51.3

 

 

 

1.2

 

 

 

 

 

 

52.5

 

Other noncurrent liabilities

 

 

 

 

42.8

 

 

 

2.4

 

 

 

(21.7

)

 

 

23.5

 

Total liabilities

 

627.8

 

 

 

302.4

 

 

 

37.1

 

 

 

(223.2

)

 

 

744.1

 

Total equity

 

149.4

 

 

 

728.4

 

 

 

85.2

 

 

 

(813.6

)

 

 

149.4

 

Total liabilities and equity

$

777.2

 

 

$

1,030.8

 

 

$

122.3

 

 

$

(1,036.8

)

 

$

893.5

 

 

Condensed Consolidating Balance Sheet

December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

 

$

21.8

 

 

$

16.8

 

 

$

(2.4

)

 

$

36.2

 

Receivables, less allowances

 

 

 

 

119.9

 

 

 

36.3

 

 

 

 

 

 

156.2

 

Receivable from R.R. Donnelley

 

68.0

 

 

 

28.0

 

 

 

 

 

 

 

 

 

96.0

 

Intercompany receivables

 

 

 

 

63.0

 

 

 

 

 

 

(63.0

)

 

 

 

Intercompany short-term note receivable

 

 

 

 

 

 

 

15.3

 

 

 

(15.3

)

 

 

 

Inventories

 

 

 

 

22.7

 

 

 

1.4

 

 

 

 

 

 

24.1

 

Prepaid expenses and other current assets

 

4.3

 

 

 

8.1

 

 

 

4.7

 

 

 

 

 

 

17.1

 

Total current assets

 

72.3

 

 

 

263.5

 

 

 

74.5

 

 

 

(80.7

)

 

 

329.6

 

Property, plant and equipment-net

 

 

 

 

32.4

 

 

 

3.1

 

 

 

 

 

 

35.5

 

Goodwill

 

 

 

 

429.2

 

 

 

17.2

 

 

 

 

 

 

446.4

 

Other intangible assets-net

 

 

 

 

44.0

 

 

 

10.3

 

 

 

 

 

 

54.3

 

Software-net

 

 

 

 

41.0

 

 

 

0.6

 

 

 

 

 

 

41.6

 

Deferred income taxes

 

 

 

 

34.2

 

 

 

2.8

 

 

 

 

 

 

37.0

 

Other noncurrent assets

 

4.4

 

 

 

27.7

 

 

 

2.4

 

 

 

 

 

 

34.5

 

Investments in consolidated subsidiaries

 

692.2

 

 

 

65.1

 

 

 

 

 

 

(757.3

)

 

 

 

Total assets

$

768.9

 

 

$

937.1

 

 

$

110.9

 

 

$

(838.0

)

 

$

978.9

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

3.4

 

 

$

72.8

 

 

$

11.5

 

 

$

(2.4

)

 

$

85.3

 

Intercompany payable

 

43.9

 

 

 

 

 

 

18.6

 

 

 

(62.5

)

 

 

 

Intercompany short-term note payable

 

15.3

 

 

 

 

 

 

 

 

 

(15.3

)

 

 

 

Accrued liabilities

 

8.2

 

 

 

81.4

 

 

 

11.6

 

 

 

(0.5

)

 

 

100.7

 

Total current liabilities

 

70.8

 

 

 

154.2

 

 

 

41.7

 

 

 

(80.7

)

 

 

186.0

 

Long-term debt

 

587.0

 

 

 

 

 

 

 

 

 

 

 

 

587.0

 

Deferred compensation liabilities

 

 

 

 

24.4

 

 

 

 

 

 

 

 

 

24.4

 

Pension and other postretirement benefits plan liabilities

 

 

 

 

55.3

 

 

 

1.1

 

 

 

 

 

 

56.4

 

Other noncurrent liabilities

 

 

 

 

11.0

 

 

 

3.0

 

 

 

 

 

 

14.0

 

Total liabilities

 

657.8

 

 

 

244.9

 

 

 

45.8

 

 

 

(80.7

)

 

 

867.8

 

Total equity

 

111.1

 

 

 

692.2

 

 

 

65.1

 

 

 

(757.3

)

 

 

111.1

 

Total liabilities and equity

$

768.9

 

 

$

937.1

 

 

$

110.9

 

 

$

(838.0

)

 

$

978.9

 

 

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

39.3

 

 

$

35.7

 

 

$

14.0

 

 

$

2.4

 

 

$

91.4

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(26.4

)

 

 

(1.4

)

 

 

 

 

 

(27.8

)

Purchase of investment

 

 

 

 

(3.4

)

 

 

 

 

 

 

 

 

(3.4

)

Intercompany note receivable, net

 

 

 

 

 

 

 

(14.7

)

 

 

14.7

 

 

 

 

Other investing activities

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.2

 

Net cash used in investing activities

 

 

 

 

(29.6

)

 

 

(16.1

)

 

 

14.7

 

 

 

(31.0

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving facility borrowings

 

298.5

 

 

 

 

 

 

 

 

 

 

 

 

298.5

 

Payments on revolving facility borrowings

 

(298.5

)

 

 

 

 

 

 

 

 

 

 

 

(298.5

)

Payments on long term debt

 

(133.0

)

 

 

 

 

 

 

 

 

 

 

 

(133.0

)

Debt issuance costs

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

Separation-related payment from R.R. Donnelley

 

68.0

 

 

 

 

 

 

 

 

 

 

 

 

68.0

 

Proceeds from the issuance of common stock

 

18.8

 

 

 

 

 

 

 

 

 

 

 

 

18.8

 

Proceeds from issuance of long-term debt

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

3.1

 

Treasury stock repurchases

 

(0.9

)

 

 

 

 

 

 

 

 

 

 

 

(0.9

)

Intercompany note payable, net

 

14.7

 

 

 

 

 

 

 

 

 

(14.7

)

 

 

 

Other financing activities

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

0.4

 

Net cash used in financing activities

 

(31.0

)

 

 

 

 

 

 

 

 

(14.7

)

 

 

(45.7

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

1.1

 

 

 

 

 

 

1.1

 

Net increase (decrease) in cash and cash equivalents

 

8.3

 

 

 

6.1

 

 

 

(1.0

)

 

 

2.4

 

 

 

15.8

 

Cash and cash equivalents at beginning of year

 

 

 

 

21.8

 

 

 

16.8

 

 

 

(2.4

)

 

 

36.2

 

Cash and cash equivalents at end of period

$

8.3

 

 

$

27.9

 

 

$

15.8

 

 

$

 

 

$

52.0

 

 

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by operating activities

$

(1.2

)

 

$

103.2

 

 

$

6.4

 

 

$

(2.4

)

 

$

106.0

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(23.6

)

 

 

(2.6

)

 

 

 

 

 

(26.2

)

Purchases of investments

 

 

 

 

(3.5

)

 

 

 

 

 

 

 

 

(3.5

)

Other investing activities

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

0.4

 

Net cash used in investing activities

 

 

 

 

(27.1

)

 

 

(2.2

)

 

 

 

 

 

(29.3

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

348.2

 

 

 

 

 

 

 

 

 

 

 

 

348.2

 

Payments on long-term debt

 

(50.0

)

 

 

 

 

 

 

 

 

 

 

 

(50.0

)

Net change in short-term debt

 

 

 

 

 

 

 

(8.8

)

 

 

 

 

 

(8.8

)

Debt issuance costs

 

(9.3

)

 

 

 

 

 

 

 

 

 

 

 

(9.3

)

Net transfers to Parent and affiliates

 

(287.7

)

 

 

(54.4

)

 

 

2.0

 

 

 

 

 

 

(340.1

)

Net cash provided by (used in) financing activities

 

1.2

 

 

 

(54.4

)

 

 

(6.8

)

 

 

 

 

 

(60.0

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

4.4

 

 

 

 

 

 

4.4

 

Net increase (decrease) in cash and cash equivalents

 

 

 

 

21.7

 

 

 

1.8

 

 

 

(2.4

)

 

 

21.1

 

Cash and cash equivalents at beginning of year

 

 

 

 

0.1

 

 

 

15.0

 

 

 

 

 

 

15.1

 

Cash and cash equivalents at end of period

$

 

 

$

21.8

 

 

$

16.8

 

 

$

(2.4

)

 

$

36.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental non-cash disclosure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs

$

300.0

 

 

$

 

 

$

 

 

$

 

 

$

300.0

 

Settlement of intercompany note payable

 

 

 

 

29.6

 

 

 

 

 

 

 

 

 

29.6

 

Accrued debt issuance costs

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2015

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

 

 

$

106.7

 

 

$

14.2

 

 

$

 

 

$

120.9

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(25.9

)

 

 

(1.2

)

 

 

 

 

 

(27.1

)

Purchases of investments

 

 

 

 

(10.0

)

 

 

 

 

 

 

 

 

(10.0

)

Net cash used in investing activities

 

 

 

 

(35.9

)

 

 

(1.2

)

 

 

 

 

 

(37.1

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in short-term debt

 

 

 

 

 

 

 

(24.0

)

 

 

 

 

 

(24.0

)

Payments on note payable with an RRD affiliate

 

 

 

 

(14.6

)

 

 

(0.2

)

 

 

 

 

 

(14.8

)

Net transfers to Parent and affiliates

 

 

 

 

(56.2

)

 

 

0.2

 

 

 

 

 

 

(56.0

)

Net cash used in financing activities

 

 

 

 

(70.8

)

 

 

(24.0

)

 

 

 

 

 

(94.8

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

(2.5

)

 

 

 

 

 

(2.5

)

Net decrease in cash and cash equivalents

 

 

 

 

 

 

 

(13.5

)

 

 

 

 

 

(13.5

)

Cash and cash equivalents at beginning of year

 

 

 

 

0.1

 

 

 

28.5

 

 

 

 

 

 

28.6

 

Cash and cash equivalents at end of period

$

 

 

$

0.1

 

 

$

15.0

 

 

$

 

 

$

15.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

Component: (Network and Table)
Network
100290 - Disclosure - Significant Accounting Policies (Policies)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicies)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accounting Policies [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accounting Policies [Abstract]
 
Use of Estimates
Use of Estimates —The preparation of consolidated and combined financial statements, in conformity with GAAP, requires the extensive use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are used when accounting for items and matters including, but not limited to, allowance for uncollectible accounts receivable, inventory obsolescence, asset valuations and useful lives, employee benefits, taxes, restructuring and other provisions and contingencies.  
Foreign Operations

Foreign Operations —Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average rates during the respective periods. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of other comprehensive income (loss) while transaction gains and losses are recorded in net earnings. Deferred taxes are not provided on cumulative foreign currency translation adjustments when the Company expects foreign earnings to be indefinitely reinvested.

 
 
Fair Value Measurements

Fair Value Measurements—Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its pension plan assets on a recurring basis. See Note 10, Retirement Plans, for the fair value of the Company’s pension plan assets as of December 31, 2017.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

 
 
Revenue Recognition

Revenue Recognition — The Company files highly-customized materials, such as regulatory S-filings and IPOs with the SEC on behalf of its customers, and performs XBRL and related services.  Revenue is recognized for these services upon completion of the service performed or following final delivery of the related printed product. The Company also provides virtual data room services and other content management services, for which revenue is recognized as the service is performed. The Company recognizes revenue for the majority of its products upon the transfer of title and risk of ownership, which is generally upon shipment to the customer. Because substantially all of the Company’s products are customized, product returns are not significant; however, the Company accrues for the estimated amount of customer credits at the time of sale.

The Company records deferred revenue in situations where amounts are invoiced but the revenue recognition criteria outlined above are not met. Such revenue is recognized when all criteria are subsequently met.

Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross, as a principal, or net of related costs, as an agent. Billings for shipping and handling costs as well as certain postage costs, and out-of-pocket expenses are recorded gross.  The Company’s printing operations process paper that may be supplied directly by customers or may be purchased by the Company and sold to customers.  No revenue is recognized for customer-supplied paper, but revenues for Company-supplied paper are recognized on a gross basis.

Refer to Note 20, New Accounting Pronouncements, for a discussion of the expected impact of the 2018 adoption of Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”).

 
 
Cash and Cash Equivalents

Cash and cash equivalents —The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions and corporations.

 
 
Receivables
Receivables— Receivables are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable and miscellaneous receivables from suppliers. No single customer comprised more than 10% of the Company’s net sales in 2017, 2016 or 2015. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Company’s historical collection experience. See Note 5, Accounts Receivable, for details of activity affecting the allowance for doubtful accounts receivable.  
Inventories
Inventories —Inventories include material, labor and factory overhead and are stated at the lower of cost or market and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold.  Inventory is valued using the First-In, First-Out (FIFO) method.  
Long-Lived Assets
Long-Lived Assets —The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are reviewed annually for impairment or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.  
Property, Plant and Equipment
Property, plant and equipment —Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.  
Goodwill

Goodwill —Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative fair value of each reporting unit.  The Company's goodwill balances were reallocated from RRD’s historical reporting units based on the relative fair values of the businesses.  

Goodwill is reviewed for impairment annually as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount.  

For certain reporting units, the Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing this qualitative analysis, the Company considers various factors, including the excess of prior year estimates of fair value compared to carrying value, the effect of market or industry changes and the reporting units’ actual results compared to projected results. Based on this qualitative analysis, if management determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying value, no further impairment testing is performed.

For the remaining reporting units, the Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, the Company will recognize an impairment loss for the amount by which the carrying amount exceeds the fair value.

The Company also performs an interim review for indicators of impairment at each quarter-end to assess whether an interim impairment review is required for any reporting unit. In the Company’s annual review at October 31, 2017, and its interim review for indicators of impairment as of December 31, 2017, management concluded that there were no indicators that the fair value of any of the reporting units with goodwill was more likely than not below its carrying amount.

 
 
Amortization
Amortization — Certain costs to acquire and develop internal-use computer software are capitalized and amortized over their estimated useful life using the straight-line method, up to a maximum of three years. Amortization expense related to internally-developed software, excluding amortization expense related to other intangible assets, was $22.5 million, $20.5 million and $17.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.  Other intangible assets are recognized separately from goodwill and are amortized over their estimated useful lives.  See Note 4, Goodwill and Other Intangible Assets, for further discussion of other intangible assets and the related amortization expense.  
Share-Based Compensation

Share-Based Compensation — In periods prior to the Separation, RRD maintained an incentive share-based compensation program for the benefit of its officers, directors, and certain employees, including certain Donnelley Financial employees.  For those periods share-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of compensation expense to RRD’s corporate and shared functional employees.  

Subsequent to the Separation, the Company recognizes share-based compensation expense based on estimated fair values for all share-based awards made to employees and directors, including restricted stock and restricted stock units. The Company recognizes compensation expense for restricted stock units expected to vest on a straight-line basis over the requisite service period of the award, based on the grant date fair value. The Company recognizes compensation expense for performance based restricted stock awards utlizing a graded vesting schedule. See Note 14, Share-Based Compensation, for further discussion.

 
 
Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans — Prior to the Separation, RRD provided pension and other postretirement healthcare benefits to certain current and former employees of Donnelley Financial. Donnelley Financial’s consolidated and combined statements of operations include expense allocations for these benefits. These allocations were funded through intercompany transactions with RRD which are reflected within net parent company investment in Donnelley Financial.

On October 1, 2016, Donnelley Financial recorded net pension plan liabilities of $68.3 million (consisting of a total benefit plan liability of $317.0 million, net of plan assets having fair market value of $248.7 million), as a result of the transfer of certain pension plan liabilities and assets from RRD to the Company upon the legal split of those plans. The pension plan asset allocation from RRD was finalized on June 30, 2017, which resulted in a $0.7 million decrease to the fair value of plan assets transferred to the Company from RRD. The Company also recorded a net other postretirement benefit liability of $1.5 million, as a result of the transfer of an other postretirement benefit plan from RRD to the Company.

Donnelley Financial engages outside actuaries to assist in the determination of the obligations and costs under these plans.  The annual income and expense amounts relating to the pension plan are based on calculations which include various actuarial assumptions including, mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effects of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods.  The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. Refer to Note 10, Retirement Plans, for further discussion.

 
 
Taxes on Income

Taxes on Income - In the Company’s combined financial statements prior to Separation, income tax expense and deferred tax balances were calculated on a separate income tax return basis although the Company’s operations have historically been included in the tax returns filed by the respective RRD entities of which the Company’s business was a part. As a standalone entity, the Company will file tax returns on its own behalf and its deferred taxes and effective tax rate may differ from those in historical periods.

Deferred taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company maintains an income taxes payable or receivable account in each jurisdiction and, with the exception of certain entities outside the U.S. that transferred to the Company at Separation, the Company is deemed to settle current tax balances with the RRD tax paying entities in the respective jurisdictions. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense.

The Company is regularly audited by foreign and domestic tax authorities. These audits occasionally result in proposed assessments where the ultimate resolution might result in the Company owing additional taxes, including in some cases, penalties and interest. The Company recognizes a tax position in its financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. This recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Although management believes that its estimates are reasonable, the final outcome of uncertain tax positions may be materially different from that which is reflected in the Company’s financial statements. The Company adjusts such reserves upon changes in circumstances that would cause a change to the estimate of the ultimate liability, upon effective settlement or upon the expiration of the statute of limitations, in the period in which such event occurs. See Note 11, Income Taxes, for further discussion.

 
 

Component: (Network and Table)
Network
100300 - Disclosure - Restructuring, Impairment and Other Charges (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherChargesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Restructuring And Related Activities [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Restructuring And Related Activities [Abstract]
 
Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations

 

2017

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Impairment

 

 

Other

Charges

 

 

Total

 

U.S.

$

3.3

 

 

$

0.2

 

 

$

3.5

 

 

$

0.2

 

 

$

0.2

 

 

$

3.9

 

International

 

2.1

 

 

 

0.1

 

 

 

2.2

 

 

 

 

 

 

 

 

 

2.2

 

Corporate

 

1.0

 

 

 

 

 

 

1.0

 

 

 

 

 

 

 

 

 

1.0

 

Total

$

6.4

 

 

$

0.3

 

 

$

6.7

 

 

$

0.2

 

 

$

0.2

 

 

$

7.1

 

2016

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Other

Charges

 

 

Total

 

U.S.

$

3.0

 

 

$

1.5

 

 

$

4.5

 

 

$

0.2

 

 

$

4.7

 

International

 

0.6

 

 

 

 

 

 

0.6

 

 

 

 

 

 

0.6

 

Corporate

 

0.1

 

 

 

 

 

 

0.1

 

 

 

 

 

 

0.1

 

Total

$

3.7

 

 

$

1.5

 

 

$

5.2

 

 

$

0.2

 

 

$

5.4

 

2015

Employee

Terminations

 

 

Other

Restructuring

Charges

 

 

Total

Restructuring

Charges

 

 

Other

Charges

 

 

Total

 

U.S.

$

1.4

 

 

$

1.9

 

 

$

3.3

 

 

$

0.2

 

 

$

3.5

 

International

 

0.9

 

 

 

 

 

 

0.9

 

 

 

 

 

 

0.9

 

Total

$

2.3

 

 

$

1.9

 

 

$

4.2

 

 

$

0.2

 

 

$

4.4

 

 
 
Schedule of Changes in the Restructuring Reserve

The restructuring reserve as of December 31, 2017 and 2016, and changes during the year ended December 31, 2017, were as follows:

 

 

December 31,

2016

 

 

Restructuring

Charges

 

 

Reversals

 

 

Foreign

Exchange and

Other

 

 

Cash

Paid

 

 

December 31,

2017

 

Employee terminations

$

1.6

 

 

$

6.5

 

 

$

(0.1

)

 

$

 

 

$

(6.7

)

 

$

1.3

 

Lease terminations and other

 

3.8

 

 

 

3.7

 

 

 

(3.4

)

 

 

0.3

 

 

 

(2.3

)

 

 

2.1

 

Total

$

5.4

 

 

$

10.2

 

 

$

(3.5

)

 

$

0.3

 

 

$

(9.0

)

 

$

3.4

 

The restructuring reserve as of December 31, 2016 and 2015, and changes during the year ended December 31, 2016, were as follows:

 

 

December 31,

2015

 

 

Restructuring

Charges

 

 

Foreign

Exchange and

Other

 

 

Cash

Paid

 

 

December 31,

2016

 

Employee terminations

$

0.9

 

 

$

3.7

 

 

$

(0.1

)

 

$

(2.9

)

 

$

1.6

 

Lease terminations and other

 

4.9

 

 

 

1.5

 

 

 

 

 

 

(2.6

)

 

 

3.8

 

Total

$

5.8

 

 

$

5.2

 

 

$

(0.1

)

 

$

(5.5

)

 

$

5.4

 

 
 

Component: (Network and Table)
Network
100310 - Disclosure - Goodwill and Other Intangible Assets (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssetsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Goodwill And Intangible Assets Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Goodwill And Intangible Assets Disclosure [Abstract]
 
Schedule of Changes in the Carrying Amount of Goodwill by Segment

The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows:

 

 

U.S.

 

 

International

 

 

Total

 

Net book value as of January 1, 2016

$

429.2

 

 

$

17.6

 

 

$

446.8

 

Foreign exchange and other adjustments

 

 

 

 

(0.4

)

 

 

(0.4

)

Net book value as of December 31, 2016

 

429.2

 

 

 

17.2

 

 

 

446.4

 

Foreign exchange and other adjustments

 

 

 

 

1.0

 

 

 

1.0

 

Net book value as of December 31, 2017

$

429.2

 

 

$

18.2

 

 

$

447.4

 

 
 
Components of Other Intangible Assets

The components of other intangible assets at December 31, 2017 and 2016 were as follows:

 

 

December 31, 2017

 

 

December 31, 2016

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Net Book

 

 

Carrying

 

 

Accumulated

 

 

Net Book

 

 

Amount

 

 

Amortization

 

 

Value

 

 

Amount

 

 

Amortization

 

 

Value

 

Customer relationships

$

140.6

 

 

$

(100.7

)

 

$

39.9

 

 

$

138.8

 

 

$

(85.3

)

 

$

53.5

 

Trade names

 

2.9

 

 

 

(2.9

)

 

 

 

 

 

6.3

 

 

 

(5.5

)

 

 

0.8

 

Trademarks, licenses and agreements

 

 

 

 

 

 

 

 

 

 

3.2

 

 

 

(3.2

)

 

 

 

Total other intangible assets

$

143.5

 

 

$

(103.6

)

 

$

39.9

 

 

$

148.3

 

 

$

(94.0

)

 

$

54.3

 

 
 
Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2017:

 

For the year ending December 31,

Amount

 

2018

$

13.8

 

2019

 

13.8

 

2020

 

12.3

 

2021

 

 

2022

 

 

2023 and thereafter

 

 

Total

$

39.9

 

 
 

Component: (Network and Table)
Network
100320 - Disclosure - Accounts Receivable (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccountsReceivableTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Receivables [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Receivables [Abstract]
 
Transactions Affecting Allowance for Doubtful Accounts

Transactions affecting the allowances for doubtful accounts receivable during the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance, beginning of year

$

6.4

 

 

$

4.6

 

 

$

3.9

 

Provisions charged to expense

 

3.9

 

 

 

3.1

 

 

 

0.5

 

Write-offs and other

 

(3.0

)

 

 

(1.3

)

 

 

0.2

 

Balance, end of year

$

7.3

 

 

$

6.4

 

 

$

4.6

 

 
 

Component: (Network and Table)
Network
100330 - Disclosure - Inventories (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureInventoriesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Inventory Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Inventory Disclosure [Abstract]
 
Components of Inventories

The components of the Company’s inventories, net of excess and obsolescence reserves for raw materials and finished goods, at December 31, 2017 and 2016 were as follows:  

 

 

2017

 

 

2016

 

Raw materials and manufacturing supplies

$

3.3

 

 

$

7.6

 

Work in process

 

13.7

 

 

 

10.8

 

Finished goods

 

6.3

 

 

 

5.7

 

Total

$

23.3

 

 

$

24.1

 

 
 

Component: (Network and Table)
Network
100340 - Disclosure - Property, Plant and Equipment (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePropertyPlantAndEquipmentTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Property Plant And Equipment [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Property Plant And Equipment [Abstract]
 
Components of Company's Property, Plant and Equipment

The components of the Company’s property, plant and equipment at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Land

$

10.0

 

 

$

10.0

 

Buildings

 

36.1

 

 

 

44.4

 

Machinery and equipment

 

104.0

 

 

 

109.2

 

 

 

150.1

 

 

 

163.6

 

Less: Accumulated depreciation

 

(115.4

)

 

 

(128.1

)

Total

$

34.7

 

 

$

35.5

 

 
 

Component: (Network and Table)
Network
100350 - Disclosure - Accrued Liabilities (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccruedLiabilitiesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accrued Liabilities Current [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Accrued Liabilities Current [Abstract]
 
Components of Accrued Liabilities

The components of the Company’s accrued liabilities at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Employee-related liabilities

$

68.9

 

 

$

54.0

 

Customer-related liabilities

 

22.9

 

 

 

19.3

 

Accrued interest payable

 

6.4

 

 

 

6.2

 

Restructuring liabilities

 

2.7

 

 

 

3.7

 

Other

 

18.3

 

 

 

17.5

 

Total accrued liabilities

$

119.2

 

 

$

100.7

 

 
 

Component: (Network and Table)
Network
100360 - Disclosure - Commitments and Contingencies (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureCommitmentsAndContingenciesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Commitments And Contingencies Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Commitments And Contingencies Disclosure [Abstract]
 
Future Minimum Rental Commitments Under Operating Lease

Future minimum rental commitments under operating leases are as follows:

 

Year Ended December 31

Amount

 

2018

$

26.6

 

2019

 

20.1

 

2020

 

13.4

 

2021

 

10.1

 

2022

 

8.4

 

2023 and thereafter

 

21.8

 

 

$

100.4

 

 
 

Component: (Network and Table)
Network
100370 - Disclosure - Retirement Plans (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation And Retirement Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Compensation And Retirement Disclosure [Abstract]
 
Components of Estimated Net Pension Plan Income

The components of the estimated net pension plan income for Donnelley Financial’s pension plans for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

Pension Benefits

 

 

2017

 

 

2016

 

 

2015

 

Interest cost

$

10.6

 

 

$

2.4

 

 

$

147.3

 

Expected return on plan assets

 

(16.0

)

 

 

(4.1

)

 

 

(210.7

)

Amortization of actuarial loss

 

2.1

 

 

 

0.7

 

 

 

36.4

 

Net periodic benefit income

$

(3.3

)

 

$

(1.0

)

 

$

(27.0

)

Income allocated to RRD affiliates

 

 

 

 

 

 

 

25.2

 

Net periodic benefit income, net of allocation

$

(3.3

)

 

$

(1.0

)

 

$

(1.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumption used to calculate net periodic benefit expense:

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

4.2

%

 

 

3.7

%

 

 

4.2

%

Expected return on plan assets

 

7.0

%

 

 

7.3

%

 

 

7.5

%

 
 
Reconciliation of Funded Status

 

Reconciliation of funded status

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Benefit obligation at beginning of year

$

293.3

 

 

$

3.2

 

 

$

1.2

 

 

$

 

Interest cost

 

10.6

 

 

 

2.4

 

 

 

 

 

 

 

Actuarial loss (gain)

 

22.9

 

 

 

(24.7

)

 

 

 

 

 

(0.3

)

Plan transfer

 

 

 

 

317.0

 

 

 

 

 

 

1.5

 

Foreign currency translation

 

 

 

 

 

 

 

0.1

 

 

 

 

Benefits paid

 

(16.9

)

 

 

(4.6

)

 

 

(0.1

)

 

 

 

Benefit obligation at end of year

$

309.9

 

 

$

293.3

 

 

$

1.2

 

 

$

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

$

235.8

 

 

$

 

 

$

 

 

$

 

Actual return on assets

 

36.1

 

 

 

(9.6

)

 

 

 

 

 

 

Employer contributions

 

2.1

 

 

 

1.3

 

 

 

0.1

 

 

 

 

Plan transfer

 

(0.7

)

 

 

248.7

 

 

 

 

 

 

 

Benefits paid

 

(16.9

)

 

 

(4.6

)

 

 

(0.1

)

 

 

 

Fair value of plan assets at end of year

$

256.4

 

 

$

235.8

 

 

$

 

 

$

 

Funded status at end of year

$

(53.5

)

 

$

(57.5

)

 

$

(1.2

)

 

$

(1.2

)

 
 
Amount Recognized on Consolidated and Combined Balance Sheets

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Accrued benefit cost (included in accrued liabilities)

$

(2.2

)

 

$

(2.2

)

 

$

 

 

$

(0.1

)

Pension and other postretirement benefits plan liabilities

 

(51.3

)

 

 

(55.3

)

 

 

(1.2

)

 

 

(1.1

)

Net liabilities recognized in the Consolidated Balance Sheets

$

(53.5

)

 

$

(57.5

)

 

$

(1.2

)

 

$

(1.2

)

 
 
Amounts in Accumulated Other Comprehensive Loss

 

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets excluding tax effects, that have not been recognized as components of net periodic cost at December 31, 2017 and 2016 were as follows:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Accumulated other comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (loss) gain

$

(87.6

)

 

$

(87.0

)

 

$

0.1

 

 

$

0.2

 

Total

$

(87.6

)

 

$

(87.0

)

 

$

0.1

 

 

$

0.2

 

 
 
Amounts Recognized in Other Comprehensive Income (Loss)

 

The pre-tax amounts recognized in other comprehensive income (loss) in 2017 as components of net periodic costs were as follows:

 

 

Pension

Benefits

 

Amortization of:

 

 

 

     Net actuarial loss

$

2.1

 

Amounts arising during the period:

 

 

 

     Net actuarial loss

 

(2.7

)

Total

$

(0.6

)

 
 
Schedule of Accumulated Other Comprehensive Loss Expected to Recognized as Components of Net Periodic Benefit Costs
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2018 are shown below:

 

Pension

Benefits

 

Amortization of:

 

 

 

Net actuarial loss

$

2.5

 

Total

$

2.5

 

 
 
Weighted Average Assumptions Used to Determine Benefit Obligation

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

3.7

%

 

 

4.2

%

 

 

3.3

%

 

 

3.6

%

 
 
Summary of Projected Benefit Obligations in Excess of Plan Assets

 

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2017 and 2016:

 

 

Pension Benefits

 

 

2017

 

 

2016

 

Projected benefit obligation

$

309.9

 

 

$

293.3

 

Fair value of plan assets

 

256.4

 

 

 

235.8

 

 
 
Expected Benefit Payments

 

Benefit payments are expected to be paid as follows:

 

 

Pension

Benefits

 

 

Other

Postretirement

Benefits

 

2018

$

16.8

 

 

$

0.1

 

2019

 

16.7

 

 

 

0.1

 

2020

 

17.0

 

 

 

0.1

 

2021

 

18.2

 

 

 

0.1

 

2022

 

18.9

 

 

 

0.1

 

2023-2027

 

92.8

 

 

 

0.4

 

 
 
Allocation of Plan Assets
The fair values of the Company’s pension plan assets at December 31, 2017 and 2016, by asset category were as follows:

 

December 31, 2017

 

Asset Category

Total

 

 

Level 1

 

 

Level 2

 

Cash and cash equivalents

$

7.0

 

 

$

3.2

 

 

$

3.8

 

Equity

 

63.5

 

 

 

63.5

 

 

 

 

Fixed income

 

87.1

 

 

 

 

 

 

87.1

 

Equity funds measured at NAV

 

98.8

 

 

 

 

 

 

 

Total

$

256.4

 

 

$

66.7

 

 

$

90.9

 

 

 

December 31, 2016

 

Asset Category

Total

 

 

Level 1

 

 

Level 2

 

Cash and cash equivalents

$

6.4

 

 

$

4.1

 

 

$

2.3

 

Equity

 

67.6

 

 

 

67.6

 

 

 

 

Fixed income

 

93.9

 

 

 

 

 

 

93.9

 

Equity funds measured at NAV

 

67.9

 

 

 

 

 

 

 

Total

$

235.8

 

 

$

71.7

 

 

$

96.2

 

 

 
 

Component: (Network and Table)
Network
100380 - Disclosure - Income Taxes (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Income Tax Disclosure [Abstract]
 
Components of Earnings from Operations Before Income Taxes

Income taxes have been based on the following components of earnings from operations before income taxes for the years ended December 31, 2017, 2016 and 2015:

 

 

2017

 

 

2016

 

 

2015

 

U.S.

$

49.1

 

 

$

84.9

 

 

$

156.1

 

Foreign

 

7.1

 

 

 

9.4

 

 

 

15.6

 

Total

$

56.2

 

 

$

94.3

 

 

$

171.7

 

 
 
Components of Income Tax Expense (Benefit) from Operations

 

The components of income tax expense (benefit) from operations for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

2017

 

 

2016

 

 

2015

 

Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

$

12.5

 

 

$

28.6

 

 

$

41.3

 

U.S. State and Local

 

5.1

 

 

 

9.0

 

 

 

12.1

 

Foreign

 

3.4

 

 

 

3.5

 

 

 

3.8

 

Current income tax expense

 

21.0

 

 

 

41.1

 

 

 

57.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

12.5

 

 

 

 

 

 

 

U.S. State and Local

 

0.6

 

 

 

 

 

 

 

Non-current income tax expense

 

13.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

13.3

 

 

 

(3.1

)

 

 

8.1

 

U.S. State and Local

 

(0.1

)

 

 

(0.4

)

 

 

2.2

 

Foreign

 

(0.8

)

 

 

(2.4

)

 

 

(0.1

)

Deferred income tax expense (benefit)

 

12.4

 

 

 

(5.9

)

 

 

10.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

46.5

 

 

$

35.2

 

 

$

67.4

 

 
 
Reconciliation of Differences Between U.S Federal Statutory and Effective Income Tax Rate

 

The following table outlines the reconciliation of differences between the U.S. Federal statutory tax rate and the Company’s worldwide effective income tax rate:

 

 

2017

 

 

2016

 

 

2015

 

Federal statutory tax rate

 

35.0

%

 

 

35.0

%

 

 

35.0

%

Federal and state transition tax on foreign earnings

 

25.3

 

 

 

 

 

 

 

Tax Act revaluation of U.S. net deferred tax assets

 

14.8

 

 

 

 

 

 

 

State and local income taxes, net of U.S. federal income tax benefit

 

5.7

 

 

 

5.9

 

 

 

5.4

 

Non-deductible expenses

 

3.6

 

 

 

 

 

 

 

Changes in valuation allowances

 

0.5

 

 

 

(1.9

)

 

 

 

Adjustment of uncertain tax positions and interest

 

(0.4

)

 

 

0.6

 

 

 

0.1

 

Domestic manufacturing deduction

 

(0.7

)

 

 

(1.3

)

 

 

(0.9

)

Foreign tax rate differential

 

(1.3

)

 

 

(0.7

)

 

 

(1.0

)

Other

 

0.2

 

 

 

(0.3

)

 

 

0.7

 

Effective income tax rate

 

82.7

%

 

 

37.3

%

 

 

39.3

%

 
 
Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows:

 

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

Pension and other postretirement benefit plans liabilities

$

15.9

 

 

$

24.1

 

Accrued liabilities

 

11.9

 

 

 

18.5

 

Net operating losses and other tax carryforwards

 

10.1

 

 

 

14.4

 

Allowance for doubtful accounts

 

2.5

 

 

 

3.3

 

Share-based compensation

 

2.9

 

 

 

2.2

 

Other

 

1.2

 

 

 

2.4

 

Total deferred tax assets

 

44.5

 

 

 

64.9

 

Valuation allowances

 

(1.5

)

 

 

(1.2

)

Total deferred tax assets

$

43.0

 

 

$

63.7

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Other intangible assets

$

(12.8

)

 

$

(21.0

)

Accelerated depreciation

 

(6.8

)

 

 

(3.1

)

Other

 

(1.6

)

 

 

(2.6

)

Total deferred tax liabilities

 

(21.2

)

 

 

(26.7

)

Net deferred tax assets

$

21.8

 

 

$

37.0

 

 
 
Transactions Affecting Valuation Allowance On Deferred Tax Assets

 

The amounts above are included in the Consolidated Balance Sheets as either a net asset or liability on a jurisdiction by jurisdiction basis.

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance, beginning of year

$

1.2

 

 

$

4.9

 

 

$

5.3

 

Current year expense (benefit)-net

 

0.3

 

 

 

(1.5

)

 

 

 

Write-offs

 

 

 

 

(2.3

)

 

 

 

Foreign exchange and other

 

 

 

 

0.1

 

 

 

(0.4

)

Balance, end of year

$

1.5

 

 

$

1.2

 

 

$

4.9

 

 
 
Unrecognized Tax Benefits

Changes in the Company’s unrecognized tax benefits at December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

Balance at beginning of year

$

1.9

 

 

$

1.0

 

 

$

0.7

 

Additions for tax positions of the current year

 

 

 

 

 

 

 

0.3

 

Additions for tax positions of prior years

 

 

 

 

0.9

 

 

 

 

Settlements during the year

 

(1.4

)

 

 

 

 

 

 

Releases

 

(0.2

)

 

 

 

 

 

 

Balance at end of year

$

0.3

 

 

$

1.9

 

 

$

1.0

 

 
 

Component: (Network and Table)
Network
100390 - Disclosure - Debt (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Debt Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Debt Disclosure [Abstract]
 
Schedule of the Company's Debt

The Company’s debt as of December 31, 2017 and 2016 consisted of the following:

 

 

December 31,

 

 

December 31,

 

 

2017

 

 

2016

 

8.25% senior notes due October 15, 2024

$

300.0

 

 

$

300.0

 

Term Loan Credit Facility

 

168.6

 

 

 

298.3

 

Borrowings under the Revolving Facility

 

 

 

 

 

Unamortized debt issuance costs

 

(10.3

)

 

 

(11.3

)

Total debt

 

458.3

 

 

 

587.0

 

Less: current portion

 

 

 

 

 

Long-term debt

$

458.3

 

 

$

587.0

 

 
 
Schedule of Future Maturities of Debt

At December 31, 2017, the future maturities of debt were as follows:

 

 

Amount

 

2018

$

 

2019

 

 

2020

 

2.5

 

2021

 

10.0

 

2022

 

10.0

 

2022 and thereafter

 

447.5

 

Total(a)

$

470.0

 

 

(a)

Excludes unamortized debt issuance costs of $10.3 million and a discount of $1.4 million which do not represent contractual commitments with a fixed amount or maturity date.

 
 
Summary of Interest Expense

The following table summarizes interest expense included in the Consolidated and Combined Statements of Operations:

 

 

2017

 

 

2016

 

 

2015

 

Interest incurred

$

43.5

 

 

$

12.2

 

 

$

1.1

 

Less: interest capitalized as property, plant and equipment

 

(0.6

)

 

 

(0.5

)

 

 

 

Interest expense, net

$

42.9

 

 

$

11.7

 

 

$

1.1

 

 
 

Component: (Network and Table)
Network
100400 - Disclosure - Earnings per Share (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureEarningsPerShareTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Earnings Per Share [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Earnings Per Share [Abstract]
 
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards
The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2017, 2016 and 2015, were as follows

 

 

2017

 

 

2016

 

 

2015

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.29

 

 

$

1.81

 

 

$

3.22

 

Diluted

$

0.29

 

 

$

1.80

 

 

$

3.22

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

9.7

 

 

$

59.1

 

 

$

104.3

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

33.1

 

 

 

32.6

 

 

 

32.4

 

Dilutive awards

 

0.2

 

 

 

0.2

 

 

 

 

Diluted weighted average number of common shares outstanding

 

33.3

 

 

 

32.8

 

 

 

32.4

 

Weighted average number of anti-dilutive share-based awards:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

0.2

 

 

 

0.2

 

 

 

 

Stock options

 

0.3

 

 

 

0.2

 

 

 

 

Total

 

0.5

 

 

 

0.4

 

 

 

 

 
 

Component: (Network and Table)
Network
100410 - Disclosure - Share-Based Compensation (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Share Based Compensation [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Share Based Compensation [Abstract]
 
Summary of Weighted-Average Assumptions Used to Determine Weighted-Average Fair Market Value of Stock Options Granted

The weighted-average assumptions used to determine the weighted-average fair market value of the stock options granted during the year ended December 31, 2017 were as follows:

 

 

2017

 

Expected volatility

 

30.71

%

Risk-free interest rate

 

2.17

%

Expected life (years)

6.25

 

Expected dividend yield

 

0.00

%

 

 
 
Summary of Stock Options Activity

Stock option awards outstanding as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Remaining

 

 

Aggregate

 

 

Shares Under

 

 

Average

 

 

Contractual

 

 

Intrinsic

 

 

Option

 

 

Exercise

 

 

Term

 

 

Value

 

 

(thousands)

 

 

Price

 

 

(years)

 

 

(millions)

 

Outstanding at December 31, 2016

 

299

 

 

$

21.48

 

 

 

3.5

 

 

$

1.4

 

Granted

 

178

 

 

 

22.37

 

 

 

9.2

 

 

 

 

 

Exercised

 

(16

)

 

 

12.67

 

 

 

 

 

 

 

 

 

Cancelled/forfeited/expired

 

(2

)

 

 

22.30

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

459

 

 

 

22.13

 

 

 

5.1

 

 

 

0.8

 

Vested and expected to vest at December 31, 2017

 

448

 

 

 

22.13

 

 

 

5.0

 

 

 

0.8

 

Exercisable at December 31, 2017

 

104

 

 

$

11.95

 

 

 

1.2

 

 

 

0.8

 

 

 
 
Summary of Restricted Stock Units

Nonvested restricted stock unit awards as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

Weighted Average

 

 

Shares

 

 

Grant Date

 

 

(thousands)

 

 

Fair Value

 

Nonvested at December 31, 2016

 

436

 

 

$

25.28

 

Granted

 

276

 

 

 

22.41

 

Vested

 

(108

)

 

 

 

 

Forfeited

 

(6

)

 

 

22.35

 

Nonvested at December 31, 2017

 

598

 

 

$

23.48

 

 

 
 
Summary of Nonvested Restricted Stock Awards

Nonvested restricted stock awards as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows:

 

 

 

 

 

 

Weighted Average

 

 

Shares

 

 

Grant Date

 

 

(thousands)

 

 

Fair Value

 

Nonvested at December 31, 2016

 

156

 

 

$

24.75

 

Granted

 

129

 

 

 

22.35

 

Nonvested at December 31, 2017

 

285

 

 

$

23.66

 

 
 

Component: (Network and Table)
Network
100420 - Disclosure - Comprehensive Income (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureComprehensiveIncomeTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Equity [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Equity [Abstract]
 
Schedule of Components of Other Comprehensive Income and Income Tax Expense Allocated to Each Component

The components of other comprehensive income and income tax expense allocated to each component for the years ended December 31, 2017, 2016 and 2015 were as follows:

 

 

2017

 

 

2016

 

 

2015

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Income Tax

 

 

Net of Tax

 

 

Amount

 

 

Expense

 

 

Amount

 

 

Amount

 

 

Expense

 

 

Amount

 

 

Amount

 

 

Expense

 

 

Amount

 

Translation adjustments

$

4.4

 

 

$

 

 

$

4.4

 

 

$

(0.1

)

 

$

 

 

$

(0.1

)

 

$

(7.5

)

 

$

 

 

$

(7.5

)

Adjustment for net periodic pension plan and other postretirement benefits plan cost

 

(0.6

)

 

 

(0.1

)

 

 

(0.7

)

 

 

11.9

 

 

 

4.8

 

 

 

7.1

 

 

 

45.9

 

 

 

18.4

 

 

 

27.5

 

Other comprehensive income

$

3.8

 

 

$

(0.1

)

 

$

3.7

 

 

$

11.8

 

 

$

4.8

 

 

$

7.0

 

 

$

38.4

 

 

$

18.4

 

 

$

20.0

 

 
 
Schedule of Changes in Accumulated Other Comprehensive Loss

The following table summarizes changes in accumulated other comprehensive loss by component for the years ended December 31, 2017, 2016 and 2015:

 

 

Pension and Other

Postretirement

Benefits Plan Cost

 

 

Translation

Adjustments

 

 

Total

 

Balance at January 1, 2015

$

(665.2

)

 

$

(8.5

)

 

$

(673.7

)

Other comprehensive income (loss) before reclassifications

 

5.7

 

 

 

(7.5

)

 

 

(1.8

)

Amounts reclassified from accumulated other comprehensive loss

 

21.8

 

 

 

 

 

 

21.8

 

Transfer of pension plan to parent company, net

 

637.7

 

 

 

 

 

 

637.7

 

Net change in accumulated other comprehensive loss

 

665.2

 

 

 

(7.5

)

 

 

657.7

 

Balance at December 31, 2015

$

 

 

$

(16.0

)

 

$

(16.0

)

Other comprehensive income (loss) before reclassifications

 

6.7

 

 

 

(0.1

)

 

 

6.6

 

Amounts reclassified from accumulated other comprehensive loss

 

0.4

 

 

 

 

 

 

0.4

 

Transfer of pension plan to parent company, net

 

(59.3

)

 

 

 

 

 

(59.3

)

Net change in accumulated other comprehensive loss

 

(52.2

)

 

 

(0.1

)

 

 

(52.3

)

Balance at December 31, 2016

$

(52.2

)

 

$

(16.1

)

 

$

(68.3

)

Other comprehensive (loss) income before reclassifications

 

(2.1

)

 

 

4.4

 

 

 

2.3

 

Amounts reclassified from accumulated other comprehensive loss

 

1.4

 

 

 

 

 

 

1.4

 

Net change in accumulated other comprehensive loss

 

(0.7

)

 

 

4.4

 

 

 

3.7

 

Balance at December 31, 2017

$

(52.9

)

 

$

(11.7

)

 

$

(64.6

)

 
 
Reclassifications from Accumulated Other Comprehensive Loss, Amortization of Pension Plan Cost

Reclassifications from accumulated other comprehensive loss for the years ended December 31, 2017, 2016 and 2015 were as follows:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classification in the

 

 

 

 

 

 

 

 

Consolidated and Combined

 

2017

 

 

2016

 

 

2015

 

 

Statements of Operations

Amortization of pension and other postretirement benefits plan cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial income

$

2.1

 

 

$

0.7

 

 

$

36.4

 

 

(a)

Reclassifications before tax

 

2.1

 

 

 

0.7

 

 

 

36.4

 

 

 

Income tax expense

 

0.7

 

 

 

0.3

 

 

 

14.6

 

 

 

Reclassifications, net of tax

$

1.4

 

 

$

0.4

 

 

$

21.8

 

 

 

 

(a)

These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to Donnelley Financial in periods prior to the Separation, and recognized in cost of sales and selling, general and administrative expenses in the consolidated and combined statements of operations (see Note 10, Retirement Plans).

 
 

Component: (Network and Table)
Network
100430 - Disclosure - Segment Information (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSegmentInformationTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Segment Reporting [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Segment Reporting [Abstract]
 
Schedule of Segment Reporting Information

The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s chief operating decision-maker and is most consistent with the presentation of profitability reported within the consolidated and combined financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

856.6

 

 

$

(8.7

)

 

$

847.9

 

 

$

127.6

 

 

$

664.7

 

 

$

38.2

 

 

$

24.7

 

International

 

160.8

 

 

 

(3.8

)

 

 

157.0

 

 

 

7.2

 

 

 

90.4

 

 

 

6.3

 

 

 

1.4

 

Total operating segments

 

1,017.4

 

 

 

(12.5

)

 

 

1,004.9

 

 

 

134.8

 

 

 

755.1

 

 

 

44.5

 

 

 

26.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(35.8

)

 

 

138.4

 

 

 

 

 

 

1.7

 

Total operations

$

1,017.4

 

 

$

(12.5

)

 

$

1,004.9

 

 

$

99.0

 

 

$

893.5

 

 

$

44.5

 

 

$

27.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

852.6

 

 

$

(7.4

)

 

$

845.2

 

 

$

118.4

 

 

$

672.2

 

 

$

34.5

 

 

$

20.5

 

International

 

142.9

 

 

 

(4.6

)

 

 

138.3

 

 

 

9.6

 

 

 

93.7

 

 

 

4.6

 

 

 

2.6

 

Total operating segments

 

995.5

 

 

 

(12.0

)

 

 

983.5

 

 

 

128.0

 

 

 

765.9

 

 

 

39.1

 

 

 

23.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(22.0

)

 

 

213.0

 

 

 

4.2

 

 

 

3.1

 

Total operations

$

995.5

 

 

$

(12.0

)

 

$

983.5

 

 

$

106.0

 

 

$

978.9

 

 

$

43.3

 

 

$

26.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Total

 

 

Intersegment

 

 

Net

 

 

from

 

 

Assets of

 

 

and

 

 

Capital

 

 

Sales

 

 

Sales

 

 

Sales

 

 

Operations

 

 

Operations

 

 

Amortization

 

 

Expenditures

 

Year ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

912.0

 

 

$

(11.2

)

 

$

900.8

 

 

$

160.3

 

 

$

664.0

 

 

$

37.0

 

 

$

25.9

 

International

 

151.1

 

 

 

(2.4

)

 

 

148.7

 

 

 

15.3

 

 

 

86.8

 

 

 

4.4

 

 

 

1.2

 

Total operating segments

 

1,063.1

 

 

 

(13.6

)

 

 

1,049.5

 

 

 

175.6

 

 

 

750.8

 

 

 

41.4

 

 

 

27.1

 

Corporate

 

 

 

 

 

 

 

 

 

 

(2.9

)

 

 

66.8

 

 

 

0.3

 

 

 

 

Total operations

$

1,063.1

 

 

$

(13.6

)

 

$

1,049.5

 

 

$

172.7

 

 

$

817.6

 

 

$

41.7

 

 

$

27.1

 

 
 
Schedule of Corporate Assets

Corporate assets primarily consisted of the following items at December 31, 2017 and 2016:

 

 

 

2017

 

 

2016

 

Cash and cash equivalents

$

43.0

 

 

$

25.5

 

Software, net

 

40.6

 

 

 

41.0

 

Deferred income tax assets, net of valuation allowances

 

18.7

 

 

 

34.2

 

Receivable from R.R. Donnelley*

 

 

 

 

76.0

 

 

* Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.

 
 

Component: (Network and Table)
Network
100440 - Disclosure - Geographic Area and Products and Services Information (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGeographicAreaAndProductsAndServicesInformationTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Segment Reporting [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Segment Reporting [Abstract]
 
Schedule of Net Sales and Long-lived Assets by Geographic Region

The table below presents net sales and long-lived assets by geographic region for the years ended December 31, 2017, 2016 and 2015.

 

 

U.S.

 

 

Europe

 

 

Asia

 

 

Canada

 

 

Other

 

 

Consolidated

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

847.9

 

 

$

70.6

 

 

$

47.2

 

 

$

36.0

 

 

$

3.2

 

 

$

1,004.9

 

Long-lived assets (a)

 

107.2

 

 

 

4.5

 

 

 

1.6

 

 

 

0.6

 

 

 

 

 

 

113.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

845.2

 

 

$

62.4

 

 

$

39.2

 

 

$

32.1

 

 

$

4.6

 

 

$

983.5

 

Long-lived assets (a)

 

107.4

 

 

 

3.1

 

 

 

0.6

 

 

 

0.5

 

 

 

 

 

 

111.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

900.8

 

 

$

70.0

 

 

$

49.3

 

 

$

23.7

 

 

$

5.7

 

 

$

1,049.5

 

Long-lived assets (a)

 

96.0

 

 

 

2.7

 

 

 

0.6

 

 

 

0.8

 

 

 

 

 

 

100.1

 

 

(a)

Includes net property, plant and equipment, net software and other noncurrent assets.

 
 
Summary of Net Sales for Services and Products

The following table summarizes net sales for services and products for the years ended December 31, 2017, 2016 and 2015.

 

 

2017

Net Sales

 

 

2016

Net Sales

 

 

2015

Net Sales

 

Capital Markets

$

396.7

 

 

$

387.6

 

 

$

431.0

 

Investment Markets

 

162.5

 

 

 

143.2

 

 

 

139.1

 

Language Solutions and other

 

72.9

 

 

 

67.8

 

 

 

58.5

 

Total services

 

632.1

 

 

 

598.6

 

 

 

628.6

 

Investment Markets

$

197.9

 

 

$

199.1

 

 

$

204.0

 

Capital Markets

 

154.9

 

 

 

168.5

 

 

 

193.9

 

Language Solutions and other

 

20.0

 

 

 

17.3

 

 

 

23.0

 

Total products

 

372.8

 

 

 

384.9

 

 

 

420.9

 

Total net sales

$

1,004.9

 

 

$

983.5

 

 

$

1,049.5

 

 
 

Component: (Network and Table)
Network
100450 - Disclosure - Related Parties (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRelatedPartiesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Related Party Transactions [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Related Party Transactions [Abstract]
 
Schedule of Allocation of Expenses Reflected in Unaudited Condensed Consolidated and Combined Financial Statements
These allocations were reflected as follows in the unaudited consolidated and combined financial statements:

 

 

2016

 

 

2015

 

Costs of goods sold allocation

$

28.0

 

 

$

38.5

 

Selling, general and administrative allocation

 

129.4

 

 

 

168.3

 

Depreciation and amortization

 

15.2

 

 

 

21.4

 

Total allocations from RRD

$

172.6

 

 

$

228.2

 

 
 

Component: (Network and Table)
Network
100460 - Disclosure - Guarantor Financial Information - (Tables)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
 
Guarantor Financial Information Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

Year Ended December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

518.5

 

 

$

121.7

 

 

$

(8.1

)

 

$

632.1

 

Products net sales

 

 

 

 

338.1

 

 

 

39.1

 

 

 

(4.4

)

 

 

372.8

 

Total net sales

 

 

 

 

856.6

 

 

 

160.8

 

 

 

(12.5

)

 

 

1,004.9

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

257.3

 

 

 

78.8

 

 

 

(7.4

)

 

 

328.7

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)*

 

 

 

 

18.4

 

 

 

1.1

 

 

 

 

 

 

19.5

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

221.5

 

 

 

24.5

 

 

 

(5.1

)

 

 

240.9

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)*

 

 

 

 

30.1

 

 

 

2.2

 

 

 

 

 

 

32.3

 

Total cost of sales

 

 

 

 

527.3

 

 

 

106.6

 

 

 

(12.5

)

 

 

621.4

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

194.1

 

 

 

38.8

 

 

 

 

 

 

232.9

 

Restructuring, impairment and other charges-net

 

 

 

 

4.9

 

 

 

2.2

 

 

 

 

 

 

7.1

 

Depreciation and amortization

 

 

 

 

38.2

 

 

 

6.3

 

 

 

 

 

 

44.5

 

Income from operations

 

 

 

 

92.1

 

 

 

6.9

 

 

 

 

 

 

99.0

 

Interest expense (income)-net

 

43.1

 

 

 

(0.1

)

 

 

(0.1

)

 

 

 

 

 

42.9

 

Investment and other income-net

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Earnings (loss) before income taxes and equity in net income of subsidiaries

 

(43.1

)

 

 

92.2

 

 

 

7.1

 

 

 

 

 

 

56.2

 

Income tax (benefit) expense

 

(16.7

)

 

 

60.6

 

 

 

2.6

 

 

 

 

 

 

46.5

 

Earnings (loss) before equity in net income of subsidiaries

 

(26.4

)

 

 

31.6

 

 

 

4.5

 

 

 

 

 

 

9.7

 

Equity in net income of subsidiaries

 

36.1

 

 

 

4.5

 

 

 

 

 

 

(40.6

)

 

 

0.0

 

Net earnings

$

9.7

 

 

$

36.1

 

 

$

4.5

 

 

$

(40.6

)

 

$

9.7

 

Comprehensive income

$

13.4

 

 

$

39.8

 

 

$

8.9

 

 

$

(48.7

)

 

$

13.4

 

    

* Beginning in the quarter ended June 30, 2017, LSC no longer qualified as a related party, therefore the 2017 amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party, therefore the amounts disclosed related to RRD are presented through June 30, 2017 only.

 

Condensed Consolidating Statements of Operations

Year Ended December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

502.2

 

 

$

104.1

 

 

$

(7.7

)

 

$

598.6

 

Products net sales

 

 

 

 

350.4

 

 

 

38.8

 

 

 

(4.3

)

 

 

384.9

 

Total net sales

 

 

 

 

852.6

 

 

 

142.9

 

 

 

(12.0

)

 

 

983.5

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

236.0

 

 

 

68.2

 

 

 

(7.1

)

 

 

297.1

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

35.6

 

 

 

2.2

 

 

 

 

 

 

37.8

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

207.0

 

 

 

24.1

 

 

 

(4.9

)

 

 

226.2

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

57.3

 

 

 

0.6

 

 

 

 

 

 

57.9

 

Total cost of sales

 

 

 

 

535.9

 

 

 

95.1

 

 

 

(12.0

)

 

 

619.0

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

176.8

 

 

 

33.0

 

 

 

 

 

 

209.8

 

Restructuring, impairment and other charges-net

 

 

 

 

4.8

 

 

 

0.6

 

 

 

 

 

 

5.4

 

Depreciation and amortization

 

 

 

 

38.6

 

 

 

4.7

 

 

 

 

 

 

43.3

 

Income from operations

 

 

 

 

96.5

 

 

 

9.5

 

 

 

 

 

 

106.0

 

Interest expense-net

 

11.7

 

 

 

 

 

 

 

 

 

 

 

 

11.7

 

Earnings (loss) before income taxes and equity in net income of subsidiaries

 

(11.7

)

 

 

96.5

 

 

 

9.5

 

 

 

 

 

 

94.3

 

Income tax (benefit) expense

 

(4.3

)

 

 

38.5

 

 

 

1.0

 

 

 

 

 

 

35.2

 

Earnings (loss) before equity in net income of subsidiaries

 

(7.4

)

 

 

58.0

 

 

 

8.5

 

 

 

 

 

 

59.1

 

Equity in net income of subsidiaries

 

66.5

 

 

 

8.5

 

 

 

 

 

 

(75.0

)

 

 

 

Net earnings (loss)

$

59.1

 

 

$

66.5

 

 

$

8.5

 

 

$

(75.0

)

 

$

59.1

 

Comprehensive income (loss)

$

66.1

 

 

$

73.5

 

 

$

8.6

 

 

$

(82.1

)

 

$

66.1

 

 

Condensed Consolidating Statements of Operations

Year Ended December 31, 2015

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Services net sales

$

 

 

$

530.2

 

 

$

106.6

 

 

$

(8.2

)

 

$

628.6

 

Products net sales

 

 

 

 

381.8

 

 

 

44.5

 

 

 

(5.4

)

 

 

420.9

 

Total net sales

 

 

 

 

912.0

 

 

 

151.1

 

 

 

(13.6

)

 

 

1,049.5

 

Services cost of sales (exclusive of depreciation and amortization)

 

 

 

 

230.7

 

 

 

68.4

 

 

 

(7.2

)

 

 

291.9

 

Services cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

38.1

 

 

 

2.3

 

 

 

 

 

 

40.4

 

Products cost of sales (exclusive of depreciation and amortization)

 

 

 

 

208.8

 

 

 

28.5

 

 

 

(6.4

)

 

 

230.9

 

Products cost of sales with R.R. Donnelley affiliates (exclusive of depreciation and amortization)

 

 

 

 

68.2

 

 

 

0.1

 

 

 

 

 

 

68.3

 

Total cost of sales

 

 

 

 

545.8

 

 

 

99.3

 

 

 

(13.6

)

 

 

631.5

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

 

 

168.1

 

 

 

31.1

 

 

 

 

 

 

199.2

 

Restructuring, impairment and other charges-net

 

 

 

 

3.5

 

 

 

0.9

 

 

 

 

 

 

4.4

 

Depreciation and amortization

 

 

 

 

37.3

 

 

 

4.4

 

 

 

 

 

 

41.7

 

Income from operations

 

 

 

 

157.3

 

 

 

15.4

 

 

 

0.0

 

 

 

172.7

 

Interest expense-net

 

 

 

 

1.1

 

 

 

 

 

 

 

 

 

1.1

 

Investment and other income-net

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Earnings before income taxes and equity in net income of subsidiaries

 

 

 

 

156.2

 

 

 

15.5

 

 

 

0.0

 

 

 

171.7

 

Income tax expense

 

 

 

 

63.8

 

 

 

3.6

 

 

 

 

 

 

67.4

 

Earnings before equity in net income of subsidiaries

 

 

 

 

92.4

 

 

 

11.9

 

 

 

0.0

 

 

 

104.3

 

Equity in net income of subsidiaries

 

104.3

 

 

 

11.9

 

 

 

 

 

 

(116.2

)

 

 

 

Net earnings (loss)

$

104.3

 

 

$

104.3

 

 

$

11.9

 

 

$

(116.2

)

 

$

104.3

 

Comprehensive income (loss)

$

124.3

 

 

$

124.3

 

 

$

4.4

 

 

$

(128.7

)

 

$

124.3

 

 
 
Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

8.3

 

 

$

27.9

 

 

$

15.8

 

 

$

 

 

$

52.0

 

Receivables, less allowances

 

 

 

 

131.3

 

 

 

33.9

 

 

 

 

 

 

165.2

 

Intercompany receivables

 

 

 

 

146.4

 

 

 

 

 

 

(146.4

)

 

 

 

Intercompany short-term note receivable-net

 

 

 

 

 

 

 

30.0

 

 

 

(30.0

)

 

 

 

Inventories

 

 

 

 

21.3

 

 

 

2.0

 

 

 

 

 

 

23.3

 

Prepaid expenses and other current assets

 

37.1

 

 

 

14.8

 

 

 

2.8

 

 

 

(25.1

)

 

 

29.6

 

Total current assets

 

45.4

 

 

 

341.7

 

 

 

84.5

 

 

 

(201.5

)

 

 

270.1

 

Property, plant and equipment-net

 

 

 

 

31.2

 

 

 

3.5

 

 

 

 

 

 

34.7

 

Goodwill

 

 

 

 

429.2

 

 

 

18.2

 

 

 

 

 

 

447.4

 

Other intangible assets-net

 

 

 

 

32.4

 

 

 

7.5

 

 

 

 

 

 

39.9

 

Software-net

 

 

 

 

40.6

 

 

 

0.5

 

 

 

 

 

 

41.1

 

Deferred income taxes

 

 

 

 

40.5

 

 

 

3.4

 

 

 

(21.7

)

 

 

22.2

 

Other noncurrent assets

 

3.4

 

 

 

30.0

 

 

 

4.7

 

 

 

 

 

 

38.1

 

Investments in consolidated subsidiaries

 

728.4

 

 

 

85.2

 

 

 

 

 

 

(813.6

)

 

 

 

Total assets

$

777.2

 

 

$

1,030.8

 

 

$

122.3

 

 

$

(1,036.8

)

 

$

893.5

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

 

 

$

57.9

 

 

$

9.9

 

 

$

 

 

$

67.8

 

Intercompany payable

 

139.5

 

 

 

 

 

 

6.9

 

 

 

(146.4

)

 

 

 

Intercompany short-term note payable-net

 

30.0

 

 

 

 

 

 

 

 

 

(30.0

)

 

 

 

Accrued liabilities

 

 

 

 

127.6

 

 

 

16.7

 

 

 

(25.1

)

 

 

119.2

 

Total current liabilities

 

169.5

 

 

 

185.5

 

 

 

33.5

 

 

 

(201.5

)

 

 

187.0

 

Long-term debt

 

458.3

 

 

 

 

 

 

 

 

 

 

 

 

458.3

 

Deferred compensation liabilities

 

 

 

 

22.8

 

 

 

 

 

 

 

 

 

22.8

 

Pension and other postretirement benefits plan liabilities

 

 

 

 

51.3

 

 

 

1.2

 

 

 

 

 

 

52.5

 

Other noncurrent liabilities

 

 

 

 

42.8

 

 

 

2.4

 

 

 

(21.7

)

 

 

23.5

 

Total liabilities

 

627.8

 

 

 

302.4

 

 

 

37.1

 

 

 

(223.2

)

 

 

744.1

 

Total equity

 

149.4

 

 

 

728.4

 

 

 

85.2

 

 

 

(813.6

)

 

 

149.4

 

Total liabilities and equity

$

777.2

 

 

$

1,030.8

 

 

$

122.3

 

 

$

(1,036.8

)

 

$

893.5

 

 

Condensed Consolidating Balance Sheet

December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

 

$

21.8

 

 

$

16.8

 

 

$

(2.4

)

 

$

36.2

 

Receivables, less allowances

 

 

 

 

119.9

 

 

 

36.3

 

 

 

 

 

 

156.2

 

Receivable from R.R. Donnelley

 

68.0

 

 

 

28.0

 

 

 

 

 

 

 

 

 

96.0

 

Intercompany receivables

 

 

 

 

63.0

 

 

 

 

 

 

(63.0

)

 

 

 

Intercompany short-term note receivable

 

 

 

 

 

 

 

15.3

 

 

 

(15.3

)

 

 

 

Inventories

 

 

 

 

22.7

 

 

 

1.4

 

 

 

 

 

 

24.1

 

Prepaid expenses and other current assets

 

4.3

 

 

 

8.1

 

 

 

4.7

 

 

 

 

 

 

17.1

 

Total current assets

 

72.3

 

 

 

263.5

 

 

 

74.5

 

 

 

(80.7

)

 

 

329.6

 

Property, plant and equipment-net

 

 

 

 

32.4

 

 

 

3.1

 

 

 

 

 

 

35.5

 

Goodwill

 

 

 

 

429.2

 

 

 

17.2

 

 

 

 

 

 

446.4

 

Other intangible assets-net

 

 

 

 

44.0

 

 

 

10.3

 

 

 

 

 

 

54.3

 

Software-net

 

 

 

 

41.0

 

 

 

0.6

 

 

 

 

 

 

41.6

 

Deferred income taxes

 

 

 

 

34.2

 

 

 

2.8

 

 

 

 

 

 

37.0

 

Other noncurrent assets

 

4.4

 

 

 

27.7

 

 

 

2.4

 

 

 

 

 

 

34.5

 

Investments in consolidated subsidiaries

 

692.2

 

 

 

65.1

 

 

 

 

 

 

(757.3

)

 

 

 

Total assets

$

768.9

 

 

$

937.1

 

 

$

110.9

 

 

$

(838.0

)

 

$

978.9

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

3.4

 

 

$

72.8

 

 

$

11.5

 

 

$

(2.4

)

 

$

85.3

 

Intercompany payable

 

43.9

 

 

 

 

 

 

18.6

 

 

 

(62.5

)

 

 

 

Intercompany short-term note payable

 

15.3

 

 

 

 

 

 

 

 

 

(15.3

)

 

 

 

Accrued liabilities

 

8.2

 

 

 

81.4

 

 

 

11.6

 

 

 

(0.5

)

 

 

100.7

 

Total current liabilities

 

70.8

 

 

 

154.2

 

 

 

41.7

 

 

 

(80.7

)

 

 

186.0

 

Long-term debt

 

587.0

 

 

 

 

 

 

 

 

 

 

 

 

587.0

 

Deferred compensation liabilities

 

 

 

 

24.4

 

 

 

 

 

 

 

 

 

24.4

 

Pension and other postretirement benefits plan liabilities

 

 

 

 

55.3

 

 

 

1.1

 

 

 

 

 

 

56.4

 

Other noncurrent liabilities

 

 

 

 

11.0

 

 

 

3.0

 

 

 

 

 

 

14.0

 

Total liabilities

 

657.8

 

 

 

244.9

 

 

 

45.8

 

 

 

(80.7

)

 

 

867.8

 

Total equity

 

111.1

 

 

 

692.2

 

 

 

65.1

 

 

 

(757.3

)

 

 

111.1

 

Total liabilities and equity

$

768.9

 

 

$

937.1

 

 

$

110.9

 

 

$

(838.0

)

 

$

978.9

 

 
 
Guarantor Financial Information Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2017

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

39.3

 

 

$

35.7

 

 

$

14.0

 

 

$

2.4

 

 

$

91.4

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(26.4

)

 

 

(1.4

)

 

 

 

 

 

(27.8

)

Purchase of investment

 

 

 

 

(3.4

)

 

 

 

 

 

 

 

 

(3.4

)

Intercompany note receivable, net

 

 

 

 

 

 

 

(14.7

)

 

 

14.7

 

 

 

 

Other investing activities

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.2

 

Net cash used in investing activities

 

 

 

 

(29.6

)

 

 

(16.1

)

 

 

14.7

 

 

 

(31.0

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving facility borrowings

 

298.5

 

 

 

 

 

 

 

 

 

 

 

 

298.5

 

Payments on revolving facility borrowings

 

(298.5

)

 

 

 

 

 

 

 

 

 

 

 

(298.5

)

Payments on long term debt

 

(133.0

)

 

 

 

 

 

 

 

 

 

 

 

(133.0

)

Debt issuance costs

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

Separation-related payment from R.R. Donnelley

 

68.0

 

 

 

 

 

 

 

 

 

 

 

 

68.0

 

Proceeds from the issuance of common stock

 

18.8

 

 

 

 

 

 

 

 

 

 

 

 

18.8

 

Proceeds from issuance of long-term debt

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

3.1

 

Treasury stock repurchases

 

(0.9

)

 

 

 

 

 

 

 

 

 

 

 

(0.9

)

Intercompany note payable, net

 

14.7

 

 

 

 

 

 

 

 

 

(14.7

)

 

 

 

Other financing activities

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

0.4

 

Net cash used in financing activities

 

(31.0

)

 

 

 

 

 

 

 

 

(14.7

)

 

 

(45.7

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

1.1

 

 

 

 

 

 

1.1

 

Net increase (decrease) in cash and cash equivalents

 

8.3

 

 

 

6.1

 

 

 

(1.0

)

 

 

2.4

 

 

 

15.8

 

Cash and cash equivalents at beginning of year

 

 

 

 

21.8

 

 

 

16.8

 

 

 

(2.4

)

 

 

36.2

 

Cash and cash equivalents at end of period

$

8.3

 

 

$

27.9

 

 

$

15.8

 

 

$

 

 

$

52.0

 

 

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2016

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by operating activities

$

(1.2

)

 

$

103.2

 

 

$

6.4

 

 

$

(2.4

)

 

$

106.0

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(23.6

)

 

 

(2.6

)

 

 

 

 

 

(26.2

)

Purchases of investments

 

 

 

 

(3.5

)

 

 

 

 

 

 

 

 

(3.5

)

Other investing activities

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

0.4

 

Net cash used in investing activities

 

 

 

 

(27.1

)

 

 

(2.2

)

 

 

 

 

 

(29.3

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

348.2

 

 

 

 

 

 

 

 

 

 

 

 

348.2

 

Payments on long-term debt

 

(50.0

)

 

 

 

 

 

 

 

 

 

 

 

(50.0

)

Net change in short-term debt

 

 

 

 

 

 

 

(8.8

)

 

 

 

 

 

(8.8

)

Debt issuance costs

 

(9.3

)

 

 

 

 

 

 

 

 

 

 

 

(9.3

)

Net transfers to Parent and affiliates

 

(287.7

)

 

 

(54.4

)

 

 

2.0

 

 

 

 

 

 

(340.1

)

Net cash provided by (used in) financing activities

 

1.2

 

 

 

(54.4

)

 

 

(6.8

)

 

 

 

 

 

(60.0

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

4.4

 

 

 

 

 

 

4.4

 

Net increase (decrease) in cash and cash equivalents

 

 

 

 

21.7

 

 

 

1.8

 

 

 

(2.4

)

 

 

21.1

 

Cash and cash equivalents at beginning of year

 

 

 

 

0.1

 

 

 

15.0

 

 

 

 

 

 

15.1

 

Cash and cash equivalents at end of period

$

 

 

$

21.8

 

 

$

16.8

 

 

$

(2.4

)

 

$

36.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental non-cash disclosure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs

$

300.0

 

 

$

 

 

$

 

 

$

 

 

$

300.0

 

Settlement of intercompany note payable

 

 

 

 

29.6

 

 

 

 

 

 

 

 

 

29.6

 

Accrued debt issuance costs

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Cash Flows

Year Ended December 31, 2015

 

 

Parent

 

 

Guarantor Subsidiaries

 

 

Non-guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

 

 

$

106.7

 

 

$

14.2

 

 

$

 

 

$

120.9

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

(25.9

)

 

 

(1.2

)

 

 

 

 

 

(27.1

)

Purchases of investments

 

 

 

 

(10.0

)

 

 

 

 

 

 

 

 

(10.0

)

Net cash used in investing activities

 

 

 

 

(35.9

)

 

 

(1.2

)

 

 

 

 

 

(37.1

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in short-term debt

 

 

 

 

 

 

 

(24.0

)

 

 

 

 

 

(24.0

)

Payments on note payable with an RRD affiliate

 

 

 

 

(14.6

)

 

 

(0.2

)

 

 

 

 

 

(14.8

)

Net transfers to Parent and affiliates

 

 

 

 

(56.2

)

 

 

0.2

 

 

 

 

 

 

(56.0

)

Net cash used in financing activities

 

 

 

 

(70.8

)

 

 

(24.0

)

 

 

 

 

 

(94.8

)

Effect of exchange rate on cash and cash equivalents

 

 

 

 

 

 

 

(2.5

)

 

 

 

 

 

(2.5

)

Net decrease in cash and cash equivalents

 

 

 

 

 

 

 

(13.5

)

 

 

 

 

 

(13.5

)

Cash and cash equivalents at beginning of year

 

 

 

 

0.1

 

 

 

28.5

 

 

 

 

 

 

28.6

 

Cash and cash equivalents at end of period

$

 

 

$

0.1

 

 

$

15.0

 

 

$

 

 

$

15.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

Component: (Network and Table)
Network
100470 - Disclosure - Overview and Basis of Presentation - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureOverviewAndBasisOfPresentationAdditionalInformationDetails)
TableOrganization Consolidation And Presentation Of Financial Statements [Table]
Slicers (applies to each fact value in each table cell)
Organization Consolidation And Presentation Of Financial Statements [Line Items]Period [Axis]
2017-08-03 - 2017-08-04
2017-06-20 - 2017-06-21
2017-03-28 - 2017-03-28
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-09-29 - 2016-10-01
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Sale of Stock
Sale of Stock
Related Party
Related Party
Equity Components
Equity Component
Related Party Transaction
Related Party Transaction
Distribution of common shares during spinoff
     
26,200,000  
  
Percentage of distribution of common shares during spinoff
     
80.75 
  
Description of distribution of common shares during spinoff
   
Holders of RRD common stock received one share of Donnelley Financial common stock for every eight shares of RRD common stock held on September 23, 2016.  
    
Proceeds from the issuance of common stock
   
18,800,000  
  
 
 
Net Sales
   
1,004,900,000  
  
983,500,000  
1,049,500,000  
Sale of Stock
Sale of Stock
Related Party
Related Party
Equity Components
Equity Component
Related Party Transaction
Transition Services Agreements
Intercompany agreements, description
   
In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively, for up to 24 months following the Separation. These services include, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization.  
    
Term of agreement
   
P24M  
    
Sale of Stock
Sale of Stock
Related Party
Related Party
Equity Components
Equity Component
Related Party Transaction
Commercial and Other Arrangements
Intercompany agreements, description
   
At the time of the Separation, the Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition, premedia and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize financial communication software and services that the Company makes available to all of its clients.  
    
Term of agreement
   
P36M  
    
Sale of Stock
Sale of Stock
Related Party
Related Party
Equity Components
Common Stock
Related Party Transaction
Related Party Transaction
Stock issued upon exercise of underwriters options
      
32,400,000  
 
Sale of Stock
Sale of Stock
Related Party
R.R. Donnelley & Sons Company
Equity Components
Equity Component
Related Party Transaction
Related Party Transaction
Distribution of common shares during spinoff
     
26,200,000  
  
Number of common stock retained
 
100,000  
 
100,000  
 
6,200,000  
  
Ownership percentage
     
19.25 
  
Net pension plan liabilities
     
68,300,000  
  
Total benefit plan liability
     
317,000,000  
  
Decrease to the fair value of plan assets
    
(700,000) 
   
Plan assets, fair market value
     
248,700,000  
  
Net other postretirement benefit liability
     
1,500,000  
  
Sale of Stock
Sale of Stock
Related Party
RRD and Affiliates
Equity Components
Equity Component
Related Party Transaction
Related Party Transaction
Net Sales
    
8,300,000  
 
19,400,000  
7,800,000  
Cost of sales
    
51,800,000  
 
95,700,000  
108,700,000  
Sale of Stock
Underwritten Public Offering
Related Party
R.R. Donnelley & Sons Company
Equity Components
Equity Component
Related Party Transaction
Related Party Transaction
Number of common stock sold
100,000  
6,100,000  
6,200,000  
     
Proceeds from the issuance of common stock
 
18,800,000  
      
Sale of Stock
Underwritten Public Offering
Related Party
R.R. Donnelley & Sons Company
Equity Components
Common Stock
Related Party Transaction
Related Party Transaction
Stock issued upon exercise of underwriters options
 
900,000  
      

Component: (Network and Table)
Network
100480 - Disclosure - Significant Accounting Policies - Additional Information (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSignificantAccountingPoliciesAdditionalInformationDetail)
TableSignificant Accounting Policies [Table]
Slicers (applies to each fact value in each table cell)
Significant Accounting Policies [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
2016-10-01
Property, Plant and Equipment, Type
Property, Plant and Equipment, Type
Range
Range
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Number of single customers comprising more than 10% of consolidated net sales
0  
 
0  
0  
 
Percentage of net sales per customer, maximum
10.00 
 
10.00 
10.00 
 
Annual goodwill impairment testing date
--10-31  
    
Property, Plant and Equipment, Type
Property, Plant and Equipment, Type
Range
Range
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
R.R. Donnelley & Sons Company
Net pension plan liabilities
    
68,300,000  
Total benefit plan liability
    
317,000,000  
Plan assets, fair market value
    
248,700,000  
Decrease to the fair value of plan assets
 
(700,000) 
   
Net other postretirement benefit liability
    
1,500,000  
Property, Plant and Equipment, Type
Property, Plant and Equipment, Type
Range
Range
Finite-Lived Intangible Assets by Major Class
Computer Software, Intangible Asset
Related Party
Related Party
Amortization expense related to internally-developed software
22,500,000  
 
20,500,000  
17,200,000  
 
Property, Plant and Equipment, Type
Property, Plant and Equipment, Type
Range
Maximum
Finite-Lived Intangible Assets by Major Class
Computer Software, Intangible Asset
Related Party
Related Party
Estimated useful life of computer software
P3Y  
    
Property, Plant and Equipment, Type
Buildings
Range
Minimum
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Estimated useful life
P15Y  
    
Property, Plant and Equipment, Type
Buildings
Range
Maximum
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Estimated useful life
P40Y  
    
Property, Plant and Equipment, Type
Machinery and Equipment
Range
Minimum
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Estimated useful life
P3Y  
    
Property, Plant and Equipment, Type
Machinery and Equipment
Range
Maximum
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Estimated useful life
P15Y  
    
Property, Plant and Equipment, Type
Leasehold Improvements
Range
Maximum
Finite-Lived Intangible Assets by Major Class
Finite-Lived Intangible Assets, Major Class Name
Related Party
Related Party
Estimated useful life
P7Y  
    

Component: (Network and Table)
Network
100490 - Disclosure - Restructuring, Impairment and Other Charges - Schedule of Restructuring, Impairment and Other Charges Recognized in Results of Operations (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherChargesScheduleOfRestructuringImpairmentAndOtherChargesRecognizedInResultsOfOperationsDetails)
TableSchedule Of Restructuring And Related Costs [Table]
Slicers (applies to each fact value in each table cell)
Restructuring Cost And Reserve [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Consolidation ItemsConsolidation ItemsConsolidation Items
CorporateConsolidation ItemsCorporateConsolidation ItemsConsolidation Items
SegmentsSegmentsSegmentsSegmentsSegments
SegmentsU.S.InternationalSegmentsSegmentsU.S.InternationalSegmentsU.S.InternationalSegments
Employee Terminations
1,000,000  
3,300,000  
2,100,000  
6,400,000  
100,000  
3,000,000  
600,000  
3,700,000  
1,400,000  
900,000  
2,300,000  
Other Restructuring Charges
0  
200,000  
100,000  
300,000  
0  
1,500,000  
0  
1,500,000  
1,900,000  
0  
1,900,000  
Total Restructuring Charges
1,000,000  
 
3,500,000  
 
2,200,000  
 
6,700,000  
 
100,000  
 
4,500,000  
 
600,000  
 
5,200,000  
 
3,300,000  
 
900,000  
 
4,200,000  
 
Impairment
0  
200,000  
0  
200,000  
       
Other Charges
0  
200,000  
0  
200,000  
0  
200,000  
0  
200,000  
200,000  
0  
200,000  
Total
1,000,000  
 
3,900,000  
 
2,200,000  
 
7,100,000  
 
100,000  
 
4,700,000  
 
600,000  
 
5,400,000  
 
3,500,000  
 
900,000  
 
4,400,000  
 

Component: (Network and Table)
Network
100500 - Disclosure - Restructuring, Impairment and Other Charges - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherChargesAdditionalInformationDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Restructuring And Related Activities [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Restructuring And Related Activities [Abstract]
 
 
 
Employee termination costs
6,400,000  
3,700,000  
2,300,000  
Number of employees used to determine employee termination costs
192  
84  
64  
Other restructuring charges
300,000  
1,500,000  
1,900,000  
Impairment charges
200,000  
  
Other charges
200,000  
200,000  
200,000  

Component: (Network and Table)
Network
100510 - Disclosure - Restructuring, Impairment and Other Charges - Schedule of Changes in the Restructuring Reserve (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherChargesScheduleOfChangesInRestructuringReserveDetails)
TableSchedule Of Restructuring And Related Costs [Table]
Slicers (applies to each fact value in each table cell)
Restructuring Cost And Reserve [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
Restructuring TypeRestructuring Type
Employee terminationsLease terminations and otherType of RestructuringEmployee terminationsLease terminations and otherType of Restructuring
Balance at the beginning
1,600,000  
3,800,000  
5,400,000  
900,000  
4,900,000  
5,800,000  
Restructuring Charges
6,500,000  
3,700,000  
10,200,000  
3,700,000  
1,500,000  
5,200,000  
Reversals
(100,000) 
(3,400,000) 
(3,500,000) 
   
Foreign Exchange and Other
0  
300,000  
300,000  
(100,000) 
0  
(100,000) 
Cash Paid
(6,700,000) 
(2,300,000) 
(9,000,000) 
(2,900,000) 
(2,600,000) 
(5,500,000) 
Balance at the end
1,300,000  
 
2,100,000  
 
3,400,000  
 
1,600,000  
 
3,800,000  
 
5,400,000  
 

Component: (Network and Table)
Network
100520 - Disclosure - Restructuring, Impairment and Other Charges - Restructuring Reserve - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRestructuringImpairmentAndOtherChargesRestructuringReserveAdditionalInformationDetails)
TableSchedule Of Restructuring And Related Costs [Table]
Slicers (applies to each fact value in each table cell)
Restructuring Cost And Reserve [Line Items]Period [Axis]
2017-12-31
2016-12-31
Restructuring TypeRestructuring Type
Contract TerminationType of RestructuringContract TerminationType of Restructuring
Current restructuring reserve (included in accrued liabilities)
 
2,700,000  
 
3,700,000  
Noncurrent restructuring reserve (included in noncurrent liabilities)
700,000  
 
1,700,000  
 

Component: (Network and Table)
Network
100530 - Disclosure - Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill by Segment (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssetsScheduleOfChangesInCarryingAmountOfGoodwillBySegmentDetails)
TableSchedule Of Goodwill [Table]
Slicers (applies to each fact value in each table cell)
Goodwill [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
SegmentsSegments
U.S.InternationalSegmentsU.S.InternationalSegments
Goodwill net book value, beginning balance
429,200,000  
17,200,000  
446,400,000  
429,200,000  
17,600,000  
446,800,000  
Foreign exchange and other adjustments
0  
1,000,000  
1,000,000  
0  
(400,000) 
(400,000) 
Goodwill net book value, ending balance
429,200,000  
 
18,200,000  
 
447,400,000  
 
429,200,000  
 
17,200,000  
 
446,400,000  
 

Component: (Network and Table)
Network
100540 - Disclosure - Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssetsComponentsOfOtherIntangibleAssetsDetail)
TableSchedule Of Finite Lived Intangible Assets [Table]
Slicers (applies to each fact value in each table cell)
Finite Lived Intangible Assets [Line Items]Period [Axis]
2017-12-31
2016-12-31
Finite-Lived Intangible Assets by Major ClassFinite-Lived Intangible Assets by Major Class
Customer RelationshipsTrade NamesTrademarks, Licenses and AgreementsFinite-Lived Intangible Assets, Major Class NameCustomer RelationshipsTrade NamesTrademarks, Licenses and AgreementsFinite-Lived Intangible Assets, Major Class Name
Gross Carrying Amount
140,600,000  
2,900,000  
0  
143,500,000  
138,800,000  
6,300,000  
3,200,000  
148,300,000  
Accumulated Amortization
(100,700,000) 
(2,900,000) 
0  
(103,600,000) 
(85,300,000) 
(5,500,000) 
(3,200,000) 
(94,000,000) 
Net Book Value
39,900,000  
 
0  
 
0  
 
39,900,000  
 
53,500,000  
 
800,000  
 
0  
 
54,300,000  
 

Component: (Network and Table)
Network
100550 - Disclosure - Goodwill and Other Intangible Assets - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssetsAdditionalInformationDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Goodwill And Intangible Assets Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Goodwill And Intangible Assets Disclosure [Abstract]
 
 
 
Amortization expense for other intangible assets
15,000,000  
14,400,000  
15,400,000  

Component: (Network and Table)
Network
100560 - Disclosure - Goodwill and Other Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Other Intangible Assets (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGoodwillAndOtherIntangibleAssetsScheduleOfEstimatedAnnualAmortizationExpenseRelatedToOtherIntangibleAssetsDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Goodwill And Intangible Assets Disclosure [Abstract]Period [Axis]
2017-12-31
Goodwill And Intangible Assets Disclosure [Abstract]
 
2018
13,800,000  
2019
13,800,000  
2020
12,300,000  
2021
0  
2022
0  
2023 and thereafter
0  
Total
39,900,000  
 

Component: (Network and Table)
Network
100570 - Disclosure - Accounts Receivable - Transactions Affecting Allowance for Doubtful Accounts (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccountsReceivableTransactionsAffectingAllowanceForDoubtfulAccountsDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Receivables [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Receivables [Abstract]
 
 
 
Balance, beginning of year
6,400,000  
4,600,000  
3,900,000  
Provisions charged to expense
3,900,000  
3,100,000  
500,000  
Write-offs and other
(3,000,000) 
(1,300,000) 
200,000  
Balance, end of year
7,300,000  
 
6,400,000  
 
4,600,000  
 

Component: (Network and Table)
Network
100580 - Disclosure - Inventories - Components of Inventories (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureInventoriesComponentsOfInventoriesDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Inventory Net [Abstract]Period [Axis]
2017-12-31
2016-12-31
Inventory Net [Abstract]
 
 
Raw materials and manufacturing supplies
3,300,000  
7,600,000  
Work in process
13,700,000  
10,800,000  
Finished goods
6,300,000  
5,700,000  
Total
23,300,000  
 
24,100,000  
 

Component: (Network and Table)
Network
100590 - Disclosure - Property, Plant and Equipment - Components of Company's Property, Plant and Equipment (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePropertyPlantAndEquipmentComponentsOfCompanySPropertyPlantAndEquipmentDetails)
TableSchedule Of Property Plant And Equipment [Table]
Slicers (applies to each fact value in each table cell)
Property Plant And Equipment [Line Items]Period [Axis]
2017-12-31
2016-12-31
Property, Plant and Equipment, TypeProperty, Plant and Equipment, Type
LandBuildingsMachinery and EquipmentProperty, Plant and Equipment, TypeLandBuildingsMachinery and EquipmentProperty, Plant and Equipment, Type
Property, plant and equipment, gross
10,000,000  
36,100,000  
104,000,000  
150,100,000  
10,000,000  
44,400,000  
109,200,000  
163,600,000  
Less: Accumulated depreciation
   
(115,400,000) 
   
(128,100,000) 
Total
 
 
 
 
 
 
34,700,000  
 
 
 
 
 
 
 
35,500,000  
 

Component: (Network and Table)
Network
100600 - Disclosure - Property, Plant and Equipment - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePropertyPlantAndEquipmentAdditionalInformationDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Property Plant And Equipment [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Property Plant And Equipment [Abstract]
 
 
 
Depreciation expense
7,000,000  
8,400,000  
9,100,000  

Component: (Network and Table)
Network
100610 - Disclosure - Accrued Liabilities - Components of Accrued Liabilities (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureAccruedLiabilitiesComponentsOfAccruedLiabilitiesDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Accrued Liabilities Current [Abstract]Period [Axis]
2017-12-31
2016-12-31
Accrued Liabilities Current [Abstract]
 
 
Employee-related liabilities
68,900,000  
54,000,000  
Customer-related liabilities
22,900,000  
19,300,000  
Accrued interest payable
6,400,000  
6,200,000  
Restructuring liabilities
2,700,000  
3,700,000  
Other
18,300,000  
17,500,000  
Total accrued liabilities
119,200,000  
 
100,700,000  
 

Component: (Network and Table)
Network
100620 - Disclosure - Commitments and Contingencies - Additional Information (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureCommitmentsAndContingenciesAdditionalInformationDetail)
TableOther Commitments [Table]
Slicers (applies to each fact value in each table cell)
Other Commitments [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Restructuring TypeRestructuring TypeRestructuring Type
Employee terminationsType of RestructuringType of RestructuringType of Restructuring
Commitments for the purchase of property, plant and equipment related to incomplete projects
 
5,300,000  
  
Commitments for outsourced services, professional, maintenance and other services
 
34,100,000  
  
Severance commitments related to restructuring
1,300,000  
   
Operating lease commitments
 
100,400,000  
  
Minimum non-cancelable sublease rental commitments
 
31,900,000  
  
Rent expense
 
27,400,000  
23,800,000  
22,200,000  

Component: (Network and Table)
Network
100630 - Disclosure - Commitments and Contingencies - Future Minimum Rental Commitments Under Operating Lease (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureCommitmentsAndContingenciesFutureMinimumRentalCommitmentsUnderOperatingLeaseDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Commitments And Contingencies Disclosure [Abstract]Period [Axis]
2017-12-31
Commitments And Contingencies Disclosure [Abstract]
 
2018
26,600,000  
2019
20,100,000  
2020
13,400,000  
2021
10,100,000  
2022
8,400,000  
2023 and thereafter
21,800,000  
Future minimum rental commitments under operating leases
100,400,000  
 

Component: (Network and Table)
Network
100640 - Disclosure - Retirement Plans - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansAdditionalInformationDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
2016-10-01
Related Party
Related Party
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Net pension income
3,300,000  
 
1,000,000  
27,000,000  
 
Pension income allocated to RRD and RRD related parties
   
25,200,000  
 
Pension and postretirement contributions
2,200,000  
 
1,100,000  
 
 
Defined benefit plan, accumulated benefit obligation
311,100,000  
 
294,500,000  
  
Threshold for recognition in net periodic benefit costs, percentage of projected benefit obligation or fair value of plan assets
10.00 
    
Total expense attributable to defined contribution retirement savings plan, employer contribution
3,400,000  
 
0  
0  
 
Related Party
Related Party
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multi-Employer Pension Plans
Number of multi-employer Pension plans withdrawn from
1  
    
Related Party
Related Party
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Multi-employer pension plan withdrawal obligations
Multiemployer Plan Type
Multiemployer Plans Type
Other Charges
200,000  
 
200,000  
200,000  
 
Related Party
Related Party
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Investments
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Target asset allocation percentage
40.00 
    
Related Party
Related Party
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Return Seeking Securities
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Target asset allocation percentage
60.00 
    
Related Party
Related Party
Retirement Plan Type
Other Postretirement Benefit Plan
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Pension cost and other postretirement benefits
100,000  
 
0  
  
Net pension plan liabilities
1,200,000  
 
1,200,000  
  
Total benefit plan liability
1,200,000  
 
1,200,000  
0  
 
Plan assets, fair market value
0  
 
0  
0  
 
Pension and postretirement contributions
100,000  
    
Pension and other postretirement expected contributions for next year
100,000  
    
Related Party
Related Party
Retirement Plan Type
Pension Plan
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Pension cost and other postretirement benefits
16,900,000  
 
4,600,000  
  
Net pension plan liabilities
53,500,000  
 
57,500,000  
  
Total benefit plan liability
309,900,000  
 
293,300,000  
3,200,000  
 
Plan assets, fair market value
256,400,000  
 
235,800,000  
0  
 
Net pension income
(3,300,000) 
 
(1,000,000) 
(27,000,000) 
 
Pension income allocated to RRD and RRD related parties
   
25,200,000  
 
Pension and postretirement contributions
2,100,000  
    
Pension and other postretirement expected contributions for next year
2,300,000  
    
Related Party
R.R. Donnelley & Sons Company
Retirement Plan Type
Retirement Plan Type
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Pension cost and other postretirement benefits
  
4,200,000  
3,700,000  
 
Net pension plan liabilities
    
68,300,000  
Total benefit plan liability
    
317,000,000  
Plan assets, fair market value
    
248,700,000  
Decrease to the fair value of plan assets
 
(700,000) 
   
Net other postretirement benefit liability
    
1,500,000  
Related Party
R.R. Donnelley & Sons Company
Retirement Plan Type
Other Postretirement Benefit Plan
Defined Benefit Plan, Asset Categories
Plan Asset Categories
Hedging Relationship
Hedging Relationship
Loss Contingency Nature
Loss Contingency, Nature
Multiemployer Plan Type
Multiemployer Plans Type
Pension cost and other postretirement benefits
  
1,000,000  
1,900,000  
 

Component: (Network and Table)
Network
100650 - Disclosure - Retirement Plans - Components of Estimated Net Pension Plan Income (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansComponentsOfEstimatedNetPensionPlanIncomeDetail)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Retirement Plan TypeRetirement Plan TypeRetirement Plan Type
Pension PlanRetirement Plan TypePension PlanRetirement Plan TypePension PlanRetirement Plan Type
Interest cost
10,600,000  
 
2,400,000  
 
147,300,000  
 
Expected return on plan assets
(16,000,000) 
 
(4,100,000) 
 
(210,700,000) 
 
Amortization of actuarial loss
2,100,000  
 
700,000  
 
36,400,000  
 
Net periodic benefit income
(3,300,000) 
 
3,300,000  
 
(1,000,000) 
 
1,000,000  
 
(27,000,000) 
 
27,000,000  
 
Income allocated to RRD affiliates
    
25,200,000  
25,200,000  
Net periodic benefit income, net of allocation
(3,300,000) 
 
 
 
(1,000,000) 
 
 
 
(1,800,000) 
 
 
 
Weighted average assumption used to calculate net periodic benefit expense:
 
 
 
 
 
 
Discount rate
4.20 
 
3.70 
 
4.20 
 
Expected return on plan assets
7.00 
 
7.30 
 
7.50 
 

Component: (Network and Table)
Network
100660 - Disclosure - Retirement Plans - Reconciliation of Funded Status (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansReconciliationOfFundedStatusDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Retirement Plan TypeRetirement Plan TypeRetirement Plan Type
Pension PlanOther Postretirement Benefit PlanPension PlanOther Postretirement Benefit PlanPension PlanOther Postretirement Benefit Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
 
 
 
Benefit obligation at beginning of year
293,300,000  
1,200,000  
3,200,000  
 
  
Interest cost
10,600,000  
0  
2,400,000  
0  
147,300,000  
 
Actuarial loss (gain)
22,900,000  
0  
(24,700,000) 
(300,000) 
  
Plan transfer
0  
0  
317,000,000  
1,500,000  
  
Foreign currency translation
0  
100,000  
0  
0  
  
Benefits paid
(16,900,000) 
(100,000) 
(4,600,000) 
 
  
Benefit obligation at end of year
309,900,000  
 
1,200,000  
 
293,300,000  
 
1,200,000  
 
3,200,000  
 
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
 
 
 
Fair value of plan assets at beginning of year
235,800,000  
 
 
 
  
Actual return on assets
36,100,000  
0  
(9,600,000) 
0  
  
Employer contributions
2,100,000  
100,000  
1,300,000  
0  
  
Plan transfer
(700,000) 
0  
248,700,000  
0  
  
Benefits paid
(16,900,000) 
(100,000) 
(4,600,000) 
0  
  
Fair value of plan assets at end of year
256,400,000  
 
 
 
235,800,000  
 
 
 
 
 
 
 
Funded status at end of year
(53,500,000) 
 
(1,200,000) 
 
(57,500,000) 
 
(1,200,000) 
 
 
 
 
 

Component: (Network and Table)
Network
100670 - Disclosure - Retirement Plans - Amount Recognized on Consolidated and Combined Balance Sheets (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansAmountRecognizedOnConsolidatedAndCombinedBalanceSheetsDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
2016-12-31
Retirement Plan TypeRetirement Plan Type
Pension PlanOther Postretirement Benefit PlanRetirement Plan TypePension PlanOther Postretirement Benefit PlanRetirement Plan Type
Accrued benefit cost (included in accrued liabilities)
(2,200,000) 
0  
(119,200,000) 
(2,200,000) 
(100,000) 
(100,700,000) 
Pension and other postretirement benefits plan liabilities
(51,300,000) 
(1,200,000) 
(52,500,000) 
(55,300,000) 
(1,100,000) 
(56,400,000) 
Net liabilities recognized in the Consolidated Balance Sheets
(53,500,000) 
 
(1,200,000) 
 
 
 
(57,500,000) 
 
(1,200,000) 
 
 
 

Component: (Network and Table)
Network
100680 - Disclosure - Retirement Plans - Amounts in Accumulated Other Comprehensive Loss (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansAmountsInAccumulatedOtherComprehensiveLossDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
2016-12-31
Retirement Plan TypeRetirement Plan Type
Pension PlanOther Postretirement Benefit PlanPension PlanOther Postretirement Benefit Plan
Net actuarial (loss) gain
(87,600,000) 
100,000  
(87,000,000) 
200,000  
Total
(87,600,000) 
 
100,000  
 
(87,000,000) 
 
200,000  
 

Component: (Network and Table)
Network
100690 - Disclosure - Retirement Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansAmountsRecognizedInOtherComprehensiveIncomeLossDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
Amortization of:
 
Net actuarial loss
2,100,000  
Amounts arising during the period:
 
Net actuarial loss
(2,700,000) 
Total
(600,000) 
 

Component: (Network and Table)
Network
100700 - Disclosure - Retirement Plans - Schedule of Accumulated Other Comprehensive Loss Expected to Recognized as Components of Net Periodic Benefit Costs (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansScheduleOfAccumulatedOtherComprehensiveLossExpectedToRecognizedAsComponentsOfNetPeriodicBenefitCostsDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
Amortization of:
 
Net actuarial loss
2,500,000  
Total
2,500,000  
 

Component: (Network and Table)
Network
100710 - Disclosure - Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansWeightedAverageAssumptionsUsedToDetermineBenefitObligationDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
2016-12-31
Retirement Plan TypeRetirement Plan Type
Pension PlanOther Postretirement Benefit PlanPension PlanOther Postretirement Benefit Plan
Discount rate
3.70 
3.30 
4.20 
3.60 

Component: (Network and Table)
Network
100720 - Disclosure - Retirement Plans - Summary of Projected Benefit Obligations in Excess of Plan Assets (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansSummaryOfProjectedBenefitObligationsInExcessOfPlanAssetsDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
2016-12-31
Projected benefit obligation
309,900,000  
293,300,000  
Fair value of plan assets
256,400,000  
235,800,000  

Component: (Network and Table)
Network
100730 - Disclosure - Retirement Plans - Expected Benefit Payments (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansExpectedBenefitPaymentsDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
Retirement Plan Type
Pension PlanOther Postretirement Benefit Plan
2018
16,800,000  
100,000  
2019
16,700,000  
100,000  
2020
17,000,000  
100,000  
2021
18,200,000  
100,000  
2022
18,900,000  
100,000  
2023-2027
92,800,000  
400,000  

Component: (Network and Table)
Network
100740 - Disclosure - Retirement Plans - Allocation of Plan Assets, Pension Plan (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRetirementPlansAllocationOfPlanAssetsPensionPlanDetails)
TableSchedule Of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2017-12-31
2016-12-31
2015-12-31
Defined Benefit Plan, Asset CategoriesDefined Benefit Plan, Asset CategoriesDefined Benefit Plan, Asset Categories
Cash and Cash EquivalentsEquityFixed IncomeEquity Funds Measured at NAVPlan Asset CategoriesCash and Cash EquivalentsEquityFixed IncomeEquity Funds Measured at NAVPlan Asset CategoriesPlan Asset Categories
Fair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, HierarchyFair Value, Hierarchy
Fair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value, Inputs, Level 1Fair Value, Inputs, Level 2Fair Value HierarchyFair Value Hierarchy
Fair value of the company's benefit plan assets
3,200,000  
3,800,000  
7,000,000  
63,500,000  
0  
63,500,000  
0  
87,100,000  
87,100,000  
0  
0  
98,800,000  
66,700,000  
90,900,000  
256,400,000  
4,100,000  
2,300,000  
6,400,000  
67,600,000  
0  
67,600,000  
0  
93,900,000  
93,900,000  
0  
0  
67,900,000  
71,700,000  
96,200,000  
235,800,000  
 

Component: (Network and Table)
Network
100750 - Disclosure - Income Taxes - Components of Earnings From Operations Before Income Taxes (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesComponentsOfEarningsFromOperationsBeforeIncomeTaxesDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Income Tax Disclosure [Abstract]
 
 
 
Components Of Income Tax Expense Benefit Continuing Operations [Abstract]
 
 
 
U.S.
49,100,000  
84,900,000  
156,100,000  
Foreign
7,100,000  
9,400,000  
15,600,000  
Earnings before income taxes
56,200,000  
 
94,300,000  
 
171,700,000  
 

Component: (Network and Table)
Network
100760 - Disclosure - Income Taxes - Components of Income Tax Expense (Benefit) From Operations (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesComponentsOfIncomeTaxExpenseBenefitFromOperationsDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Income Tax Disclosure [Abstract]
 
 
 
Components Of Income Tax Expense Benefit Continuing Operations [Abstract]
 
 
 
U.S. Federal, Current
12,500,000  
28,600,000  
41,300,000  
U.S. State and Local, Current
5,100,000  
9,000,000  
12,100,000  
Foreign, Current
3,400,000  
3,500,000  
3,800,000  
Current income tax expense
21,000,000  
 
41,100,000  
 
57,200,000  
 
U.S. Federal, Non-Current
12,500,000  
0  
0  
U.S. State and Local, Non-Current
600,000  
0  
0  
Non-current income tax expense
13,100,000  
 
0  
 
0  
 
U.S. Federal, Deferred
13,300,000  
(3,100,000) 
8,100,000  
U.S. State and Local, Deferred
(100,000) 
(400,000) 
2,200,000  
Foreign, Deferred
(800,000) 
(2,400,000) 
(100,000) 
Deferred income tax expense (benefit)
12,400,000  
 
(5,900,000) 
 
10,200,000  
 
Total
46,500,000  
 
35,200,000  
 
67,400,000  
 

Component: (Network and Table)
Network
100770 - Disclosure - Income Taxes - Reconciliation From U.S. Federal Statutory Tax Rate to Effective Tax Rate (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesReconciliationFromUSFederalStatutoryTaxRateToEffectiveTaxRateDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Income Tax Disclosure [Abstract]
 
 
 
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]
 
 
 
Federal statutory tax rate
35.00 
35.00 
35.00 
Federal and state transition tax on foreign earnings
25.30 
0.00 
0.00 
Tax Act revaluation of U.S. net deferred tax assets
14.80 
0.00 
0.00 
State and local income taxes, net of U.S. federal income tax benefit
5.70 
5.90 
5.40 
Non-deductible expenses
3.60 
0.00 
0.00 
Changes in valuation allowances
0.50 
(1.90%) 
0.00 
Adjustment of uncertain tax positions and interest
(0.40%) 
0.60 
0.10 
Domestic manufacturing deduction
(0.70%) 
(1.30%) 
(0.90%) 
Foreign tax rate differential
(1.30%) 
(0.70%) 
(1.00%) 
Other
0.20 
(0.30%) 
0.70 
Effective income tax rate
82.70 
 
37.30 
 
39.30 
 

Component: (Network and Table)
Network
100780 - Disclosure - Income Taxes - Additional Information (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesAdditionalInformationDetail)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2018-01-01 - 2018-01-01
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
2014-12-31
Subsequent Event Type
Subsequent Event Type
Income Tax Authority
Income Tax Authority
Range
Range
Income tax rate
 
35.00%  
35.00%  
35.00%  
 
Reduction of net deferred tax asset recorded as additional deferred income tax expense
 
8,200,000  
   
Percentage of income tax rate increase resulting in additional deferred income tax expense
 
14.80%  
0.00%  
0.00%  
 
Percentage of tax payable on portion of earnings that are in cash and cash equivalents
 
15.50 
   
Percentage of tax payable on portion of earnings that are in non-cash and non-cash equivalent assets
 
8.00 
   
Income tax expense
 
46,500,000  
35,200,000  
67,400,000  
 
Percentage of income tax rate increase due to transition tax on foreign earnings
 
25.30%  
0.00%  
0.00%  
 
Domestic and foreign net operating loss
 
10,100,000  
14,400,000  
  
Net operating loss expiring between 2018 and 2027
 
3,500,000  
   
Cash payments for income taxes
 
30,500,000  
5,200,000  
1,900,000  
 
Current tax settled with RRD
 
2,600,000  
37,200,000  
55,100,000  
 
Cash refunds for income taxes
 
1,000,000  
700,000  
100,000  
 
Unrecognized tax benefits
 
300,000  
1,900,000  
1,000,000  
700,000  
Unrecognized tax benefits that would impact effective tax rate
 
100,000  
   
Amount of unrecognized tax benefit expected to decrease within twelve months
 
0  
   
Total interest expense/(benefit), net of tax benefits related to tax uncertainties
 
(200,000) 
300,000  
200,000  
 
Benefits from reversal of accrued penalties
 
0  
0  
0  
 
Accrued interest related to income tax uncertainties
 
0  
300,000  
  
Accrued penalties related to income tax uncertainties
 
0  
0  
  
Subsequent Event Type
Subsequent Event Type
Income Tax Authority
Income Tax Authority
Range
Minimum
Net operating loss carryforwards expiration year
 
2018  
   
Subsequent Event Type
Subsequent Event Type
Income Tax Authority
Income Tax Authority
Range
Maximum
Net operating loss carryforwards expiration year
 
2027  
   
Subsequent Event Type
Subsequent Event Type
Income Tax Authority
Federal and State
Range
Range
Income tax expense
 
14,200,000  
   
Percentage of income tax rate increase due to transition tax on foreign earnings
 
25.30 
   
Term required to pay transition tax liability
 
P8Y  
   
Noncurrent taxes payable
 
13,100,000  
   
Current taxes payable
 
1,100,000  
   
Subsequent Event Type
Subsequent Event
Income Tax Authority
Income Tax Authority
Range
Range
Income tax rate
21.00 
    

Component: (Network and Table)
Network
100790 - Disclosure - Income Taxes - Schedule of Significant Deferred Tax Assets And Liabilities (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesScheduleOfSignificantDeferredTaxAssetsAndLiabilitiesDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-12-31
2016-12-31
Income Tax Disclosure [Abstract]
 
 
Components Of Deferred Tax Assets And Liabilities [Abstract]
 
 
Pension and other postretirement benefit plans liabilities
15,900,000  
24,100,000  
Accrued liabilities
11,900,000  
18,500,000  
Net operating losses and other tax carryforwards
10,100,000  
14,400,000  
Allowance for doubtful accounts
2,500,000  
3,300,000  
Share-based compensation
2,900,000  
2,200,000  
Other
1,200,000  
2,400,000  
Total deferred tax assets
44,500,000  
 
64,900,000  
 
Valuation allowances
(1,500,000) 
(1,200,000) 
Total deferred tax assets
43,000,000  
 
63,700,000  
 
Other intangible assets
(12,800,000) 
(21,000,000) 
Accelerated depreciation
(6,800,000) 
(3,100,000) 
Other
(1,600,000) 
(2,600,000) 
Total deferred tax liabilities
(21,200,000) 
 
(26,700,000) 
 
Net deferred tax assets
21,800,000  
 
37,000,000  
 

Component: (Network and Table)
Network
100800 - Disclosure - Income Taxes - Schedule of Transactions Affecting Valuation Allowance on Deferred Tax Assets (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesScheduleOfTransactionsAffectingValuationAllowanceOnDeferredTaxAssetsDetail)
TableValuation Allowance [Table]
Slicers (applies to each fact value in each table cell)
Valuation Allowance [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Balance, beginning of year
1,200,000  
4,900,000  
5,300,000  
Current year expense (benefit)-net
300,000  
(1,500,000) 
0  
Write-offs
0  
(2,300,000) 
0  
Foreign exchange and other
0  
100,000  
(400,000) 
Balance, end of year
1,500,000  
 
1,200,000  
 
4,900,000  
 

Component: (Network and Table)
Network
100810 - Disclosure - Income Taxes - Unrecognized Tax Benefits (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureIncomeTaxesUnrecognizedTaxBenefitsDetail)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Income Tax Disclosure [Abstract]
 
 
 
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
 
 
 
Balance at beginning of year
1,900,000  
1,000,000  
700,000  
Additions for tax positions of the current year
0  
0  
300,000  
Additions for tax positions of prior years
0  
900,000  
0  
Settlements during the year
(1,400,000) 
0  
0  
Releases
(200,000) 
0  
0  
Balance at end of year
300,000  
 
1,900,000  
 
1,000,000  
 

Component: (Network and Table)
Network
100820 - Disclosure - Debt - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtAdditionalInformationDetails)
TableDebt Instrument [Table]
Slicers (applies to each fact value in each table cell)
Debt Instrument [Line Items]Period [Axis]
2017-10-02 - 2017-10-02
2017-08-03 - 2017-08-04
2017-06-20 - 2017-06-21
2017-04-03 - 2017-04-03
2017-03-28 - 2017-03-28
2017-01-01 - 2017-12-31
2016-09-29 - 2016-09-30
2016-01-01 - 2016-12-31
2016-01-01 - 2016-09-30
2015-01-01 - 2015-12-31
2017-04-25
2016-10-01
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Stock issued upon exercise of underwriters options
     
16,000  
      
Outstanding letters of credit and bank guarantees
     
4,500,000  
      
Interest paid
     
40,000,000  
 
4,800,000  
 
1,100,000  
  
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Senior Notes
Interest payment period
     
semi-annually  
      
Commencement of interest payment
        
2017-04-15  
   
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
8.25% Senior Notes Due October 15, 2024
Long-term Debt, Type
Long-term Debt, Type
Senior Unsecured notes
     
300,000,000  
300,000,000  
300,000,000  
300,000,000  
 
299,900,000  
 
Interest rate, stated percentage
     
8.25 
8.25 
8.25 
8.25%  
   
Maturity date
     
2024-10-15  
2024-10-15  
2024-10-15  
    
Fair value of senior notes
     
321,500,000  
 
307,100,000  
    
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
R.R. Donnelley & Sons Company
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Repayments of debt
        
340,200,000  
   
Number of common stock retained
  
100,000  
  
100,000  
     
6,200,000  
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
R.R. Donnelley & Sons Company
Related Party Transaction
Related Party Transaction
Sale of Stock
Underwritten Public Offering
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Number of common stock sold
 
100,000  
6,100,000  
 
6,200,000  
       
Stock issued upon exercise of underwriters options
  
900,000  
         
Proceeds from sale of options exercised
  
18,800,000  
         
Credit Facility
Credit Facility
Variable Rate
Variable Rate
Related Party
R.R. Donnelley & Sons Company
Related Party Transaction
Separation and Distribution Agreement
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Cash payment received from RR Donnelley
   
68,000,000  
        
Credit Facility
Senior Secured Term Loan B Facility
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Credit facility
      
350,000,000  
 
350,000,000  
   
Borrowings
     
168,600,000  
 
298,300,000  
    
Credit Facility
Senior Secured Term Loan B Facility
Variable Rate
LIBOR
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Debt instrument interest rate basis spread on variable rate decrease
1.00 
           
Debt instrument, basis spread on variable rate
3.00 
           
Debt instrument, interest rate basis spread on floor rate decrease
0.25 
           
Debt instrument floor rate
0.75 
           
Credit Facility
Revolving Credit Facility
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Credit facility
      
300,000,000  
 
300,000,000  
   
Borrowings
     
0  
 
0  
    
Weighted average interest rate on borrowings
     
4.40 
      
Letters of credit outstanding reduced to available under credit agreement amount
     
0  
      
Credit Facility
Credit Agreement
Variable Rate
Variable Rate
Related Party
Related Party
Related Party Transaction
Related Party Transaction
Sale of Stock
Sale of Stock
Debt Instrument
Debt Instrument, Name
Long-term Debt, Type
Long-term Debt, Type
Allowable annual dividend payment under credit agreement
      
15,000,000  
 
15,000,000  
   

Component: (Network and Table)
Network
100830 - Disclosure - Debt - Schedule of the Company's Debt (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtScheduleOfCompanySDebtDetails)
TableDebt Instrument [Table]
Slicers (applies to each fact value in each table cell)
Debt Instrument [Line Items]Period [Axis]
2017-12-31
2017-04-25
2016-12-31
2016-09-30
Credit FacilityCredit FacilityCredit FacilityCredit Facility
Senior Secured Term Loan B FacilityRevolving Credit FacilityCredit FacilityCredit FacilitySenior Secured Term Loan B FacilityRevolving Credit FacilityCredit FacilityCredit Facility
Debt InstrumentDebt InstrumentDebt InstrumentDebt InstrumentDebt InstrumentDebt InstrumentDebt InstrumentDebt Instrument
Debt Instrument, NameDebt Instrument, Name8.25% Senior Notes Due October 15, 2024Debt Instrument, Name8.25% Senior Notes Due October 15, 2024Debt Instrument, NameDebt Instrument, Name8.25% Senior Notes Due October 15, 2024Debt Instrument, Name8.25% Senior Notes Due October 15, 2024
Senior Unsecured notes
  
300,000,000  
 
299,900,000  
  
300,000,000  
 
300,000,000  
Credit facility
168,600,000  
 
   
298,300,000  
 
   
Unamortized debt issuance costs
   
(10,300,000) 
    
(11,300,000) 
 
Total debt
 
 
 
 
 
 
458,300,000  
 
 
 
 
 
 
 
 
 
587,000,000  
 
 
 
Less: current portion
   
0  
    
0  
 
Long-term debt
   
458,300,000  
    
587,000,000  
 

Component: (Network and Table)
Network
100840 - Disclosure - Debt - Schedule of the Company's Debt (Details)2
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtScheduleOfCompanySDebtDetails2)
Table(Implied)
No facts found for this component but calculations defined in this component are used in one or more other components.

Component: (Network and Table)
Network
100850 - Disclosure - Debt - Schedule of the Company's Debt (Parenthetical) (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtScheduleOfCompanySDebtParentheticalDetails)
TableDebt Instrument [Table]
Slicers (applies to each fact value in each table cell)
Debt Instrument [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-09-29 - 2016-09-30
2016-01-01 - 2016-12-31
Interest rate, stated percentage
8.25%  
8.25%  
8.25%  
Maturity date
2024-10-15  
2024-10-15  
2024-10-15  

Component: (Network and Table)
Network
100860 - Disclosure - Debt - Schedule of Future Maturities of Debt (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtScheduleOfFutureMaturitiesOfDebtDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Long Term Debt By Maturity [Abstract]Period [Axis]
2017-12-31
Long Term Debt By Maturity [Abstract]
 
2018
 
2019
 
2020
2,500,000  
2021
10,000,000  
2022
10,000,000  
2022 and thereafter
447,500,000  
Total
470,000,000 1
 
1: Excludes unamortized debt issuance costs of $10.3 million and a discount of $1.4 million which do not represent contractual commitments with a fixed amount or maturity date.

Component: (Network and Table)
Network
100870 - Disclosure - Debt - Schedule of Future Maturities of Debt (Parenthetical) (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtScheduleOfFutureMaturitiesOfDebtParentheticalDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Long Term Debt By Maturity [Abstract]Period [Axis]
2017-12-31
2016-12-31
Long Term Debt By Maturity [Abstract]
 
 
Unamortized debt issuance cost
10,300,000  
11,300,000  
Discount on senior notes
1,400,000  
 

Component: (Network and Table)
Network
100880 - Disclosure - Debt - Summary of Interest Expense (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureDebtSummaryOfInterestExpenseDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Debt Instruments [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Debt Instruments [Abstract]
 
 
 
Interest incurred
43,500,000  
12,200,000  
1,100,000  
Less: interest capitalized as property, plant and equipment
(600,000) 
(500,000) 
 
Interest expense, net
42,900,000  
 
11,700,000  
 
1,100,000  
 

Component: (Network and Table)
Network
100890 - Disclosure - Earnings per Share - Additional Information (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureEarningsPerShareAdditionalInformationDetail)
TableEarnings Per Share [Table]
Slicers (applies to each fact value in each table cell)
Earnings Per Share [Line Items]Period [Axis]
2017-08-03 - 2017-08-04
2017-06-20 - 2017-06-21
2017-03-28 - 2017-03-28
2017-01-01 - 2017-12-31
2016-09-29 - 2016-10-01
2016-01-01 - 2016-09-30
Related Party
Related Party
Restructuring Type
Type of Restructuring
Sale of Stock
Sale of Stock
Distribution of common shares during spinoff
    
26,200,000  
 
Related Party
R.R. Donnelley & Sons Company
Restructuring Type
Type of Restructuring
Sale of Stock
Sale of Stock
Distribution of common shares during spinoff
    
26,200,000  
 
Number of common stock retained
 
100,000  
 
100,000  
6,200,000  
 
Basic and diluted common shares outstanding
     
32,400,000  
Related Party
R.R. Donnelley & Sons Company
Restructuring Type
Type of Restructuring
Sale of Stock
Underwritten Public Offering
Number of common stock sold
100,000  
6,100,000  
6,200,000  
   
Related Party
R.R. Donnelley & Sons Company
Restructuring Type
Spinoff
Sale of Stock
Sale of Stock
Number of common stock retained
    
6,200,000  
 
Common stock received during spinoff, description
   
Holders of RRD common stock received one share of Donnelley Financial for every eight shares of RRD common stock held on September 23, 2016.  
  
Conversion ratio of common stock received during spinoff
    
.125  
 

Component: (Network and Table)
Network
100900 - Disclosure - Earnings per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Share Calculation and Anti-dilutive Share-based Awards (Detail)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureEarningsPerShareReconciliationOfNumeratorAndDenominatorOfBasicAndDilutedEarningsPerShareCalculationAndAntiDilutiveShareBasedAwardsDetail)
TableEarnings Per Share Basic And Diluted [Table]
Slicers (applies to each fact value in each table cell)
Earnings Per Share Basic And Diluted [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Antidilutive SecuritiesAntidilutive SecuritiesAntidilutive Securities
Restricted stock unitsStock optionsAntidilutive Securities, NameRestricted stock unitsStock optionsAntidilutive Securities, NameRestricted stock unitsStock optionsAntidilutive Securities, Name
Basic
  
.29  
  
1.81  
  
3.22  
Diluted
  
.29  
  
1.80  
  
3.22  
Net earnings
  
9,700,000  
  
59,100,000  
  
104,300,000  
Weighted average number of common shares outstanding
  
33,100,000  
  
32,600,000  
  
32,400,000  
Dilutive awards
  
200,000  
  
200,000  
  
0  
Diluted weighted average number of common shares outstanding
 
 
 
 
33,300,000  
 
 
 
 
 
32,800,000  
 
 
 
 
 
32,400,000  
 
Total weighted average number of anti-dilutive share-based awards
200,000  
300,000  
500,000  
200,000  
200,000  
400,000  
0  
0  
0  

Component: (Network and Table)
Network
100910 - Disclosure - Share-Based Compensation - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationAdditionalInformationDetails)
TableSchedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table]
Slicers (applies to each fact value in each table cell)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-09-29 - 2016-10-01
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Plan Name
Plan Name
Award Type
Equity Award
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation award, description
In connection with the Separation, as of October 1, 2016, employee stock options and restricted stock units (“RSUs”) were adjusted and converted into new equity awards of Donnelley Financial, RRD and/or LSC using a 10-day volume weighted average share price of Donnelley Financial, RRD and LSC, as described in the Separation and Distribution Agreement. Converted awards retained the same vesting schedule and expiration date of the original awards. In addition, performance-based awards granted under RRD were converted into RSUs of Donnelley Financial, RRD and/or LSC (with satisfaction of performance conditions determined through the Separation Date) and remain subject to time-based vesting for the remainder of the applicable performance period. All equity awards converted upon Separation were authorized for issuance under the 2016 PIP. In periods following the Separation, the Company records share-based compensation expense for its employees’ equity awards that were converted into Donnelley Financial, RRD and/or LSC equity awards.  
   
Share-based compensation award, volume weighted average share price, measurement period
 
P10D  
  
Share-based compensation
6,800,000  
 
2,500,000  
1,600,000  
Share-based compensation expense, income tax benefit
3,000,000  
 
1,000,000  
600,000  
Unrecognized share-based compensation expense
10,400,000  
   
Unrecognized share-based compensation expense, vest over weighted-average period
P2Y1M6D  
   
Stock options granted
178,000  
   
Plan Name
Plan Name
Award Type
RSUs
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation award, vesting period
P3Y  
   
Share-based compensation
4,100,000  
 
1,900,000  
800,000  
Unrecognized share-based compensation expense
5,400,000  
   
Unrecognized share-based compensation expense, vest over weighted-average period
P1Y10M24D  
   
Unrecognized share-based compensation expense, expected to vest, Shares
600,000  
   
Unrecognized share-based compensation expense, weighted-average grant date fair value
23.48  
   
Share-based compensation award, granted
276,000  
   
Plan Name
Plan Name
Award Type
RSUs
Vesting
Share-based Compensation Award, Tranche One
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation award, vesting period
P4Y  
   
Plan Name
Plan Name
Award Type
RSUs
Vesting
Share-based Compensation Award, Tranche Two
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation award, vesting period
P3Y  
   
Plan Name
Plan Name
Award Type
Stock Options
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation award, vesting period
P4Y  
   
Share-based compensation
300,000  
   
Unrecognized share-based compensation expense
1,100,000  
   
Unrecognized share-based compensation expense, vest over weighted-average period
P3Y2M12D  
   
Stock options granted
177,600  
 
0  
0  
Share-based compensation award, weighted-average grant date fair market value
7.77  
   
Intrinsic value of options exercised
100,000  
   
Excess tax benefit on stock options exercises, shown as operating cash inflows
0  
 
0  
 
Plan Name
Plan Name
Award Type
Restricted Stock
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation
2,200,000  
 
300,000  
 
Unrecognized share-based compensation expense
3,300,000  
   
Unrecognized share-based compensation expense, vest over weighted-average period
P1Y10M24D  
   
Share-based compensation award, granted
129,000  
   
Share-based compensation expense, targeted performance percentage
100.00 
   
Share-based compensation expense, actual performance percentage
100.00 
   
Plan Name
Plan Name
Award Type
Restricted Stock
Vesting
Vesting
Range
Range
Title of Individual
Certain Executives
Share-based compensation award, granted
129,400  
   
Plan Name
Plan Name
Award Type
Restricted Stock
Vesting
Vesting
Range
Minimum
Title of Individual
Relationship to Entity
Potential payout for awards
0  
   
Plan Name
Plan Name
Award Type
Restricted Stock
Vesting
Vesting
Range
Maximum
Title of Individual
Relationship to Entity
Potential payout for awards
129,400  
   
Potential payout achieved
156,169  
   
Plan Name
Plan Name
Award Type
Performance Share Units
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Share-based compensation
200,000  
   
Unrecognized share-based compensation expense
600,000  
   
Unrecognized share-based compensation expense, vest over weighted-average period
P2Y2M12D  
   
Share-based compensation expense, targeted performance percentage
100.00 
   
Plan Name
Plan Name
Award Type
Performance Share Units
Vesting
Vesting
Range
Range
Title of Individual
Certain Executive Officers and Senior Management
Share-based compensation award, granted
37,100  
   
Plan Name
Plan Name
Award Type
Performance Share Units
Vesting
Vesting
Range
Minimum
Title of Individual
Relationship to Entity
Potential payout for awards
0  
   
Plan Name
Plan Name
Award Type
Performance Share Units
Vesting
Vesting
Range
Maximum
Title of Individual
Relationship to Entity
Potential payout for awards
55,650  
   
Plan Name
2016 PIP
Award Type
Equity Award
Vesting
Vesting
Range
Range
Title of Individual
Relationship to Entity
Common stock reserved and authorized
3,500,000  
   
Shares authorized and available for grant
2,000,000  
   

Component: (Network and Table)
Network
100920 - Disclosure - Share-Based Compensation - Summary of Weighted-average Assumptions Used to Determine the Weighted-average Fair Market Value of the Stock Options Granted (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationSummaryOfWeightedAverageAssumptionsUsedToDetermineWeightedAverageFairMarketValueOfStockOptionsGrantedDetails)
TableSchedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table]
Slicers (applies to each fact value in each table cell)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
Expected volatility
30.71 
Risk-free interest rate
2.17 
Expected life (years)
P6Y3M  
Expected dividend yield
0.00 

Component: (Network and Table)
Network
100930 - Disclosure - Share-Based Compensation - Summary of Stock Option Awards Outstanding (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationSummaryOfStockOptionAwardsOutstandingDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Shares Under Option
 
 
Outstanding at beginning of period
299,000  
 
Granted
178,000  
 
Exercised
(16,000) 
 
Cancelled/forfeited/expired
(2,000) 
 
Outstanding at end of period
459,000  
 
299,000  
 
Vested and expected to vest at end of period
448,000  
 
Exercisable at end of period
104,000  
 
Weighted Average Exercise Price
 
 
Outstanding at beginning of period
21.48  
 
Granted
22.37  
 
Exercised
12.67  
 
Cancelled/forfeited/expired
22.30  
 
Outstanding at end of period
22.13  
21.48  
Vested and expected to vest at end of period
22.13  
 
Exercisable at end of period
11.95  
 
Weighted Average Remaining Contractual Term (years)
 
 
Outstanding at beginning of period
P5Y1M6D  
P3Y6M  
Granted
P9Y2M12D  
 
Vested and expected to vest at end of period
P5Y  
 
Exercisable at end of period
P1Y2M12D  
 
Aggregate Intrinsic Value
 
 
Outstanding at beginning of period
1,400,000  
 
Outstanding at end of period
800,000  
1,400,000  
Vested and expected to vest at end of period
800,000  
 
Exercisable at end of period
800,000  
 

Component: (Network and Table)
Network
100940 - Disclosure - Share-Based Compensation - Summary of Nonvested Restricted Stock Unit Awards (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationSummaryOfNonvestedRestrictedStockUnitAwardsDetails)
TableSchedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table]
Slicers (applies to each fact value in each table cell)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
Nonvested at beginning of period, Shares
436,000  
Granted, Shares
276,000  
Vested, Shares
(108,000) 
Forfeited, Shares
(6,000) 
Nonvested at end of period, Shares
598,000  
 
Nonvested at beginning of period, Weighted Average Grant Date Fair Value
25.28  
Granted, Weighted Average Grant Date Fair Value
22.41  
Vested, Weighted Average Grant Date Fair Value
0  
Forfeited, Weighted Average Grant Date Fair Value
22.35  
Nonvested at end of period, Weighted Average Grant Date Fair Value
23.48  

Component: (Network and Table)
Network
100950 - Disclosure - Share-Based Compensation - Summary of Nonvested Restricted Stock Awards (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureShareBasedCompensationSummaryOfNonvestedRestrictedStockAwardsDetails)
TableSchedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table]
Slicers (applies to each fact value in each table cell)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
Nonvested at beginning of period, Shares
156,000  
Granted, Shares
129,000  
Nonvested at end of period, Shares
285,000  
 
Nonvested at beginning of period, Weighted Average Grant Date Fair Value
24.75  
Granted, Weighted Average Grant Date Fair Value
22.35  
Nonvested at end of period, Weighted Average Grant Date Fair Value
23.66  

Component: (Network and Table)
Network
100960 - Disclosure - Preferred Stock - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosurePreferredStockAdditionalInformationDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Equity [Abstract]Period [Axis]
2017-12-31
2016-12-31
Equity [Abstract]
 
 
Preferred stock, authorized
1,000,000  
1,000,000  
Preferred stock, par value
0.01  
0.01  

Component: (Network and Table)
Network
100970 - Disclosure - Comprehensive Income - Schedule of Components of Other Comprehensive Income and Income Tax Expense Allocated to Each Component (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureComprehensiveIncomeScheduleOfComponentsOfOtherComprehensiveIncomeAndIncomeTaxExpenseAllocatedToEachComponentDetails)
TableAccumulated Other Comprehensive Income Loss [Table]
Slicers (applies to each fact value in each table cell)
Accumulated Other Comprehensive Income Loss [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Equity ComponentsEquity ComponentsEquity Components
Translation adjustmentsAdjustment for Net Periodic Pension Plan and Other Postretirement Benefits Plan CostEquity ComponentTranslation adjustmentsAdjustment for Net Periodic Pension Plan and Other Postretirement Benefits Plan CostEquity ComponentTranslation adjustmentsAdjustment for Net Periodic Pension Plan and Other Postretirement Benefits Plan CostEquity Component
Other comprehensive income, Before Tax Amount
4,400,000  
(600,000) 
3,800,000  
(100,000) 
11,900,000  
11,800,000  
(7,500,000) 
45,900,000  
38,400,000  
Other comprehensive income, Income Tax Expense
0  
(100,000) 
(100,000) 
0  
4,800,000  
4,800,000  
0  
18,400,000  
18,400,000  
Other comprehensive income, net of tax
4,400,000  
 
(700,000) 
 
3,700,000  
 
(100,000) 
 
7,100,000  
 
7,000,000  
 
(7,500,000) 
 
27,500,000  
 
20,000,000  
 

Component: (Network and Table)
Network
100980 - Disclosure - Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureComprehensiveIncomeScheduleOfChangesInAccumulatedOtherComprehensiveLossDetails)
TableAccumulated Other Comprehensive Income Loss [Table]
Slicers (applies to each fact value in each table cell)
Accumulated Other Comprehensive Income Loss [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Equity ComponentsEquity ComponentsEquity Components
Pension and Other Postretirement Benefits Plan CostTranslation adjustmentsAccumulated Other Comprehensive LossEquity ComponentPension and Other Postretirement Benefits Plan CostTranslation adjustmentsAccumulated Other Comprehensive LossEquity ComponentPension and Other Postretirement Benefits Plan CostTranslation adjustmentsAccumulated Other Comprehensive LossEquity Component
Balance
(52,200,000) 
(16,100,000) 
(68,300,000) 
111,100,000  
0  
(16,000,000) 
(16,000,000) 
623,500,000  
(665,200,000) 
(8,500,000) 
(673,700,000) 
351,500,000  
Other comprehensive income (loss) before reclassifications
(2,100,000) 
4,400,000  
2,300,000  
 
6,700,000  
(100,000) 
6,600,000  
 
5,700,000  
(7,500,000) 
(1,800,000) 
 
Amounts reclassified from accumulated other comprehensive loss
1,400,000  
0  
1,400,000  
 
400,000  
0  
400,000  
 
21,800,000  
0  
21,800,000  
 
Transfer of pension plan to parent company, net
    
(59,300,000) 
0  
(59,300,000) 
 
637,700,000  
0  
637,700,000  
 
Net change in accumulated other comprehensive loss
(700,000) 
 
4,400,000  
 
3,700,000  
 
 
 
(52,200,000) 
 
(100,000) 
 
(52,300,000) 
 
 
 
665,200,000  
 
(7,500,000) 
 
657,700,000  
 
 
 
Balance
(52,900,000) 
 
(11,700,000) 
 
(64,600,000) 
 
149,400,000  
 
(52,200,000) 
 
(16,100,000) 
 
(68,300,000) 
 
111,100,000  
 
 
 
(16,000,000) 
 
(16,000,000) 
 
623,500,000  
 

Component: (Network and Table)
Network
100990 - Disclosure - Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Loss Amortization of Pension Plan Cost (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureComprehensiveIncomeReclassificationsFromAccumulatedOtherComprehensiveLossAmortizationOfPensionPlanCostDetails)
TableReclassification Out Of Accumulated Other Comprehensive Income [Table]
Slicers (applies to each fact value in each table cell)
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Equity ComponentsEquity ComponentsEquity Components
Accumulated Defined Benefit Plans Adjustment, Net Actuarial IncomePension and Other Postretirement Benefits Plan CostAccumulated Defined Benefit Plans Adjustment, Net Actuarial IncomePension and Other Postretirement Benefits Plan CostAccumulated Defined Benefit Plans Adjustment, Net Actuarial IncomePension and Other Postretirement Benefits Plan Cost
Amortization of pension and other postretirement benefits plan cost: Reclassifications before tax
2,100,000 1
2,100,000  
700,000 1
700,000  
36,400,000 1
36,400,000  
Income tax expense
 
700,000  
 
300,000  
 
14,600,000  
Reclassifications, net of tax
 
 
1,400,000  
 
 
 
400,000  
 
 
 
21,800,000  
 
1: (a) These accumulated other comprehensive (loss) income components are included in the calculation of net periodic pension and other postretirement benefits plan (income) expense, a component of which was allocated to Donnelley Financial in periods prior to the Separation, and recognized in cost of sales and selling, general and administrative expenses in the consolidated and combined statements of operations (see Note 10, Retirement Plans).

Component: (Network and Table)
Network
101000 - Disclosure - Segment Information - Schedule of Segment Reporting Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSegmentInformationScheduleOfSegmentReportingInformationDetails)
TableSchedule Of Segment Reporting Information By Segment [Table]
Slicers (applies to each fact value in each table cell)
Segment Reporting Information [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
SegmentsSegmentsSegments
U.S.InternationalSegmentsU.S.InternationalSegmentsU.S.InternationalSegments
Consolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation Items
Total Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesCorporateConsolidation ItemsTotal Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesCorporateConsolidation ItemsTotal Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesConsolidation ItemsTotal Operating SegmentsIntersegment SalesCorporateConsolidation Items
Net Sales
856,600,000  
(8,700,000) 
847,900,000  
160,800,000  
(3,800,000) 
157,000,000  
1,017,400,000  
(12,500,000) 
 
1,004,900,000  
852,600,000  
(7,400,000) 
845,200,000  
142,900,000  
(4,600,000) 
138,300,000  
995,500,000  
(12,000,000) 
 
983,500,000  
912,000,000  
(11,200,000) 
900,800,000  
151,100,000  
(2,400,000) 
148,700,000  
1,063,100,000  
(13,600,000) 
 
1,049,500,000  
Income (Loss) from Operations
127,600,000  
  
7,200,000  
  
134,800,000  
 
(35,800,000) 
99,000,000  
118,400,000  
  
9,600,000  
  
128,000,000  
 
(22,000,000) 
106,000,000  
160,300,000  
  
15,300,000  
  
175,600,000  
 
(2,900,000) 
172,700,000  
Assets of Operations
664,700,000  
  
90,400,000  
  
755,100,000  
 
138,400,000  
893,500,000  
672,200,000  
  
93,700,000  
  
765,900,000  
 
213,000,000  
978,900,000  
664,000,000  
  
86,800,000  
  
750,800,000  
 
66,800,000  
817,600,000  
Depreciation and amortization
38,200,000  
  
6,300,000  
  
44,500,000  
 
0  
44,500,000  
34,500,000  
  
4,600,000  
  
39,100,000  
 
4,200,000  
43,300,000  
37,000,000  
  
4,400,000  
  
41,400,000  
 
300,000  
41,700,000  
Capital Expenditures
24,700,000  
  
1,400,000  
  
26,100,000  
 
1,700,000  
27,800,000  
20,500,000  
  
2,600,000  
  
23,100,000  
 
3,100,000  
26,200,000  
25,900,000  
  
1,200,000  
  
27,100,000  
 
0  
27,100,000  

Component: (Network and Table)
Network
101010 - Disclosure - Segment Information - Schedule of Corporate Assets (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureSegmentInformationScheduleOfCorporateAssetsDetails)
TableSchedule Of Segment Reporting Information By Segment [Table]
Slicers (applies to each fact value in each table cell)
Segment Reporting Information [Line Items]Period [Axis]
2017-12-31
2016-12-31
2015-12-31
2014-12-31
Consolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation Items
CorporateConsolidation ItemsCorporateConsolidation ItemsConsolidation ItemsConsolidation Items
Cash and cash equivalents
43,000,000  
52,000,000  
25,500,000  
36,200,000  
15,100,000  
28,600,000  
Software, net
40,600,000  
41,100,000  
41,000,000  
41,600,000  
  
Deferred income tax assets, net of valuation allowances
18,700,000  
43,000,000  
34,200,000  
63,700,000  
  
Receivable from R.R. Donnelley
0 1
 
76,000,000 1
   
1: Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.

Component: (Network and Table)
Network
101020 - Disclosure - Geographic Area and Products and Services Information - Schedule of Net Sales and Long-lived Assets by Geographic Region (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGeographicAreaAndProductsAndServicesInformationScheduleOfNetSalesAndLongLivedAssetsByGeographicRegionDetails)
TableSchedule Of Revenues From External Customers And Long Lived Assets [Table]
Slicers (applies to each fact value in each table cell)
Revenues From External Customers And Long Lived Assets [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
GeographicalGeographicalGeographical
U.S.EuropeAsiaCanadaOtherGeographicalU.S.EuropeAsiaCanadaOtherGeographicalU.S.EuropeAsiaCanadaOtherGeographical
Net sales
847,900,000  
70,600,000  
47,200,000  
36,000,000  
3,200,000  
1,004,900,000  
845,200,000  
62,400,000  
39,200,000  
32,100,000  
4,600,000  
983,500,000  
900,800,000  
70,000,000  
49,300,000  
23,700,000  
5,700,000  
1,049,500,000  
Long-lived assets
107,200,000 1
4,500,000 1
1,600,000 1
600,000 1
0 1
113,900,000 1
107,400,000 1
3,100,000 1
600,000 1
500,000 1
0 1
111,600,000 1
96,000,000 1
2,700,000 1
600,000 1
800,000 1
0 1
100,100,000 1
1: Includes net property, plant and equipment, net software and other noncurrent assets.

Component: (Network and Table)
Network
101030 - Disclosure - Geographic Area and Products and Services Information - Summary of Net Sales for Services and Products (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGeographicAreaAndProductsAndServicesInformationSummaryOfNetSalesForServicesAndProductsDetails)
TableSchedule Of Entity Wide Information Revenue From External Customers By Products And Services [Table]
Slicers (applies to each fact value in each table cell)
Entity Wide Information Revenue From External Customer [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Products and ServicesProducts and ServicesProducts and Services
Capital MarketsInvestment MarketsLanguage Solutions and otherProducts and ServicesCapital MarketsInvestment MarketsLanguage Solutions and otherProducts and ServicesCapital MarketsInvestment MarketsLanguage Solutions and otherProducts and Services
Total services
396,700,000  
162,500,000  
72,900,000  
632,100,000  
387,600,000  
143,200,000  
67,800,000  
598,600,000  
431,000,000  
139,100,000  
58,500,000  
628,600,000  
Total products
154,900,000  
197,900,000  
20,000,000  
372,800,000  
168,500,000  
199,100,000  
17,300,000  
384,900,000  
193,900,000  
204,000,000  
23,000,000  
420,900,000  
Total net sales
   
1,004,900,000  
   
983,500,000  
   
1,049,500,000  

Component: (Network and Table)
Network
101040 - Disclosure - Related Parties - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRelatedPartiesAdditionalInformationDetails)
TableSchedule Of Related Party Transactions By Related Party [Table]
Slicers (applies to each fact value in each table cell)
Related Party Transaction [Line Items]Period [Axis]
2017-08-03 - 2017-08-04
2017-06-20 - 2017-06-21
2017-04-03 - 2017-04-03
2017-03-28 - 2017-03-28
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-01-01 - 2016-12-31
2016-01-01 - 2016-09-30
2015-01-01 - 2015-12-31
2016-10-01
Related Party
Related Party
Sale of Stock
Sale of Stock
Related Party Transaction
Related Party Transaction
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Net Sales
    
1,004,900,000  
 
983,500,000  
 
1,049,500,000  
 
Products cost of sales (exclusive of depreciation and amortization)
    
240,900,000  
 
226,200,000  
 
230,900,000  
 
Services cost of sales (exclusive of depreciation and amortization)
    
328,700,000  
 
297,100,000  
 
291,900,000  
 
Related Party
Related Party
Sale of Stock
Sale of Stock
Related Party Transaction
Related Party Transaction
Products and Services
Products and Services
Income Statement Location
Selling, General and Administrative Expenses
Share-based compensation costs
       
1,200,000  
1,600,000  
 
Related Party
Related Party
Sale of Stock
Sale of Stock
Related Party Transaction
Related Party Transaction
Products and Services
Outsourcing Business
Income Statement Location
Income Statement Location
Services cost of sales (exclusive of depreciation and amortization)
     
19,500,000  
37,800,000  
 
40,400,000  
 
Related Party
Related Party
Sale of Stock
Sale of Stock
Related Party Transaction
Transition Services Agreements
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Intercompany agreements, description
    
In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively, for up to 24 months following the Separation. These services include, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization.  
     
Term of agreement
    
P24M  
     
Related Party
Related Party
Sale of Stock
Sale of Stock
Related Party Transaction
Commercial and Other Arrangements
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Intercompany agreements, description
    
At the time of the Separation, the Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition, premedia and access to technology. The terms of the arrangements with RRD do not exceed 36 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize financial communication software and services that the Company makes available to all of its clients.  
     
Term of agreement
    
P36M  
     
Related Party
R.R. Donnelley & Sons Company
Sale of Stock
Sale of Stock
Related Party Transaction
Related Party Transaction
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Sale of common stock transaction date
 
2017-06-21  
        
Common stock shares issued retained
 
100,000  
        
Receivable from related parties
    
1
 
96,000,000 1
   
Payables to related parties
      
27,100,000  
   
Net pension plan liabilities
         
68,300,000  
Total benefit plan liability
         
317,000,000  
Plan assets, fair market value
         
248,700,000  
Decrease to the fair value of plan assets
     
(700,000) 
    
Related Party
R.R. Donnelley & Sons Company
Sale of Stock
Sale of Stock
Related Party Transaction
Separation and Distribution Agreement
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Cash payment received from RR Donnelley
  
68,000,000  
       
Related Party
R.R. Donnelley & Sons Company
Sale of Stock
Sale of Stock
Related Party Transaction
Freight and Logistics and Services
Products and Services
Printed Products
Income Statement Location
Income Statement Location
Products cost of sales (exclusive of depreciation and amortization)
     
32,300,000  
57,900,000  
 
68,300,000  
 
Related Party
R.R. Donnelley & Sons Company
Sale of Stock
Underwritten Public Offering
Related Party Transaction
Related Party Transaction
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Number of common stock sold
100,000  
6,100,000  
 
6,200,000  
      
Sale of common stock transaction date
2017-08-04  
         
Related Party
R.R. Donnelley Affiliates
Sale of Stock
Sale of Stock
Related Party Transaction
Related Party Transaction
Products and Services
Products and Services
Income Statement Location
Income Statement Location
Net Sales
     
8,300,000  
19,400,000  
 
7,800,000  
 
Products cost of sales (exclusive of depreciation and amortization)
    
32,300,000 2
 
57,900,000 2
 
68,300,000 2
 
Services cost of sales (exclusive of depreciation and amortization)
    
19,500,000 2
 
37,800,000 2
 
40,400,000 2
 
1: Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.
2: Beginning in the quarter ended June 30, 2017, LSC Communications, Inc. (“LSC”) no longer qualified as a related party, therefore the 2017 amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, R.R. Donnelley & Sons Company ("RRD") no longer qualified as a related party, therefore the 2017 amounts disclosed related to RRD are presented through June 30, 2017 only.

Component: (Network and Table)
Network
101050 - Disclosure - Related Parties - Schedule of Allocation of Expenses Reflected in Unaudited Condensed Consolidated and Combined Financial Statements (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureRelatedPartiesScheduleOfAllocationOfExpensesReflectedInUnauditedCondensedConsolidatedAndCombinedFinancialStatementsDetails)
TableSchedule Of Related Party Transactions By Related Party [Table]
Slicers (applies to each fact value in each table cell)
Related Party Transaction [Line Items]Period [Axis]
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Income Statement LocationIncome Statement Location
Costs of goods soldSelling, general and administrativeDepreciation and amortizationIncome Statement LocationCosts of goods soldSelling, general and administrativeDepreciation and amortizationIncome Statement Location
Total allocations from RRD
28,000,000  
129,400,000  
15,200,000  
172,600,000  
38,500,000  
168,300,000  
21,400,000  
228,200,000  

Component: (Network and Table)
Network
101060 - Disclosure - Guarantor Financial Information - Additional Information (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationAdditionalInformationDetails)
TableCondensed Income Statement [Table]
Slicers (applies to each fact value in each table cell)
Condensed Income Statements Captions [Line Items]Period [Axis]
2017-12-31
Percentage of ownership in directly owned subsidiaries
100.00 

Component: (Network and Table)
Network
101070 - Disclosure - Guarantor Financial Information - Condensed Consolidating Statements of Operations (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationCondensedConsolidatingStatementsOfOperationsDetails)
TableCondensed Income Statement [Table]
Slicers (applies to each fact value in each table cell)
Consolidated EntitiesCondensed Income Statements Captions [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2017-01-01 - 2017-06-30
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Related PartyRelated PartyRelated PartyRelated Party
R.R. Donnelley AffiliatesRelated PartyR.R. Donnelley AffiliatesR.R. Donnelley AffiliatesRelated PartyR.R. Donnelley AffiliatesRelated Party
Consolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation Items
Consolidation ItemsEliminationsConsolidation ItemsConsolidation ItemsConsolidation ItemsEliminationsConsolidation ItemsConsolidation ItemsEliminationsConsolidation Items
Parent
Services net sales
          
Products net sales
          
Total net sales
          
Services cost of sales (exclusive of depreciation and amortization)
          
Products cost of sales (exclusive of depreciation and amortization)
          
Total cost of sales
          
Selling, general and administrative expenses (exclusive of depreciation and amortization)
          
Restructuring, impairment and other charges-net
          
Depreciation and amortization
          
Income from operations
          
Interest expense (income)-net
  
43,100,000  
   
11,700,000  
   
Investment and other income-net
          
Earnings (loss) before income taxes and equity in net income of subsidiaries
 
 
 
 
(43,100,000) 
 
 
 
 
 
 
 
(11,700,000) 
 
 
 
 
 
 
 
Income tax expense
  
(16,700,000) 
   
(4,300,000) 
   
Earnings (loss) before equity in net income of subsidiaries
 
 
 
 
(26,400,000) 
 
 
 
 
 
 
 
(7,400,000) 
 
 
 
 
 
 
 
Equity in net income of subsidiaries
  
36,100,000  
   
66,500,000  
  
104,300,000  
Net earnings
 
 
 
 
9,700,000  
 
 
 
 
 
 
 
59,100,000  
 
 
 
 
 
104,300,000  
 
Comprehensive income
 
 
13,400,000  
 
 
 
66,100,000  
 
 
124,300,000  
Guarantor Subsidiaries
Services net sales
  
518,500,000  
   
502,200,000  
  
530,200,000  
Products net sales
  
338,100,000  
   
350,400,000  
  
381,800,000  
Total net sales
  
856,600,000  
   
852,600,000  
  
912,000,000  
Services cost of sales (exclusive of depreciation and amortization)
18,400,000  
 
257,300,000  
 
35,600,000  
 
236,000,000  
38,100,000  
 
230,700,000  
Products cost of sales (exclusive of depreciation and amortization)
30,100,000  
 
221,500,000  
 
57,300,000  
 
207,000,000  
68,200,000  
 
208,800,000  
Total cost of sales
  
527,300,000  
   
535,900,000  
  
545,800,000  
Selling, general and administrative expenses (exclusive of depreciation and amortization)
  
194,100,000  
   
176,800,000  
  
168,100,000  
Restructuring, impairment and other charges-net
  
4,900,000  
   
4,800,000  
  
3,500,000  
Depreciation and amortization
  
38,200,000  
   
38,600,000  
  
37,300,000  
Income from operations
  
92,100,000  
   
96,500,000  
  
157,300,000  
Interest expense (income)-net
  
(100,000) 
      
1,100,000  
Investment and other income-net
          
Earnings (loss) before income taxes and equity in net income of subsidiaries
 
 
 
 
92,200,000  
 
 
 
 
 
 
 
96,500,000  
 
 
 
 
 
156,200,000  
 
Income tax expense
  
60,600,000  
   
38,500,000  
  
63,800,000  
Earnings (loss) before equity in net income of subsidiaries
 
 
 
 
31,600,000  
 
 
 
 
 
 
 
58,000,000  
 
 
 
 
 
92,400,000  
 
Equity in net income of subsidiaries
  
4,500,000  
   
8,500,000  
  
11,900,000  
Net earnings
 
 
 
 
36,100,000  
 
 
 
 
 
 
 
66,500,000  
 
 
 
 
 
104,300,000  
 
Comprehensive income
 
 
39,800,000  
 
 
 
73,500,000  
 
 
124,300,000  
Non-guarantor Subsidiaries
Services net sales
  
121,700,000  
   
104,100,000  
  
106,600,000  
Products net sales
  
39,100,000  
   
38,800,000  
  
44,500,000  
Total net sales
  
160,800,000  
   
142,900,000  
  
151,100,000  
Services cost of sales (exclusive of depreciation and amortization)
1,100,000  
 
78,800,000  
 
2,200,000  
 
68,200,000  
2,300,000  
 
68,400,000  
Products cost of sales (exclusive of depreciation and amortization)
2,200,000  
 
24,500,000  
 
600,000  
 
24,100,000  
100,000  
 
28,500,000  
Total cost of sales
  
106,600,000  
   
95,100,000  
  
99,300,000  
Selling, general and administrative expenses (exclusive of depreciation and amortization)
  
38,800,000  
   
33,000,000  
  
31,100,000  
Restructuring, impairment and other charges-net
  
2,200,000  
   
600,000  
  
900,000  
Depreciation and amortization
  
6,300,000  
   
4,700,000  
  
4,400,000  
Income from operations
  
6,900,000  
   
9,500,000  
  
15,400,000  
Interest expense (income)-net
  
(100,000) 
       
Investment and other income-net
  
(100,000) 
      
(100,000) 
Earnings (loss) before income taxes and equity in net income of subsidiaries
 
 
 
 
7,100,000  
 
 
 
 
 
 
 
9,500,000  
 
 
 
 
 
15,500,000  
 
Income tax expense
  
2,600,000  
   
1,000,000  
  
3,600,000  
Earnings (loss) before equity in net income of subsidiaries
 
 
 
 
4,500,000  
 
 
 
 
 
 
 
8,500,000  
 
 
 
 
 
11,900,000  
 
Equity in net income of subsidiaries
          
Net earnings
 
 
 
 
4,500,000  
 
 
 
 
 
 
 
8,500,000  
 
 
 
 
 
11,900,000  
 
Comprehensive income
 
 
8,900,000  
 
 
 
8,600,000  
 
 
4,400,000  
Consolidated Entities
Services net sales
 
(8,100,000) 
632,100,000  
  
(7,700,000) 
598,600,000  
 
(8,200,000) 
628,600,000  
Products net sales
 
(4,400,000) 
372,800,000  
  
(4,300,000) 
384,900,000  
 
(5,400,000) 
420,900,000  
Total net sales
 
(12,500,000) 
1,004,900,000  
8,300,000  
19,400,000  
(12,000,000) 
983,500,000  
7,800,000  
(13,600,000) 
1,049,500,000  
Services cost of sales (exclusive of depreciation and amortization)
19,500,000 1
(7,400,000) 
328,700,000  
 
37,800,000 1
(7,100,000) 
297,100,000  
40,400,000 1
(7,200,000) 
291,900,000  
Products cost of sales (exclusive of depreciation and amortization)
32,300,000 1
(5,100,000) 
240,900,000  
 
57,900,000 1
(4,900,000) 
226,200,000  
68,300,000 1
(6,400,000) 
230,900,000  
Total cost of sales
 
(12,500,000) 
621,400,000  
  
(12,000,000) 
619,000,000  
 
(13,600,000) 
631,500,000  
Selling, general and administrative expenses (exclusive of depreciation and amortization)
  
232,900,000  
   
209,800,000  
  
199,200,000  
Restructuring, impairment and other charges-net
  
7,100,000  
   
5,400,000  
  
4,400,000  
Depreciation and amortization
  
44,500,000  
   
43,300,000  
  
41,700,000  
Income from operations
  
99,000,000  
   
106,000,000  
 
0  
172,700,000  
Interest expense (income)-net
  
42,900,000  
   
11,700,000  
  
1,100,000  
Investment and other income-net
  
(100,000) 
   
 
  
(100,000) 
Earnings (loss) before income taxes and equity in net income of subsidiaries
 
 
 
 
56,200,000  
 
 
 
 
 
 
 
94,300,000  
 
 
 
0  
 
171,700,000  
 
Income tax expense
  
46,500,000  
   
35,200,000  
  
67,400,000  
Earnings (loss) before equity in net income of subsidiaries
 
 
 
 
9,700,000  
 
 
 
 
 
 
 
59,100,000  
 
 
 
0  
 
104,300,000  
 
Equity in net income of subsidiaries
 
(40,600,000) 
0  
  
(75,000,000) 
  
(116,200,000) 
 
Net earnings
 
 
(40,600,000) 
 
9,700,000  
 
 
 
 
 
(75,000,000) 
 
59,100,000  
 
 
 
(116,200,000) 
 
104,300,000  
 
Comprehensive income
 
(48,700,000) 
13,400,000  
  
(82,100,000) 
66,100,000  
 
(128,700,000) 
124,300,000  
1: Beginning in the quarter ended June 30, 2017, LSC Communications, Inc. (“LSC”) no longer qualified as a related party, therefore the 2017 amounts disclosed related to LSC are presented through March 31, 2017 only. Beginning in the quarter ended September 30, 2017, R.R. Donnelley & Sons Company ("RRD") no longer qualified as a related party, therefore the 2017 amounts disclosed related to RRD are presented through June 30, 2017 only.

Component: (Network and Table)
Network
101080 - Disclosure - Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationCondensedConsolidatingBalanceSheetDetails)
TableCondensed Balance Sheet Statement [Table]
Slicers (applies to each fact value in each table cell)
Condensed Balance Sheet Statements Captions [Line Items]Period [Axis]
2017-12-31
2016-12-31
2015-12-31
2014-12-31
Consolidated Entities
Consolidated Entities
Consolidation Items
Consolidation Items
Related Party
Related Party
ASSETS
 
 
 
 
Cash and cash equivalents
52,000,000  
36,200,000  
15,100,000  
28,600,000  
Receivables, less allowances
165,200,000  
156,200,000  
  
Inventories
23,300,000  
24,100,000  
  
Prepaid expenses and other current assets
29,600,000  
17,100,000  
  
Total current assets
270,100,000  
 
329,600,000  
 
 
 
 
 
Property, plant and equipment-net
34,700,000  
35,500,000  
  
Goodwill
447,400,000  
446,400,000  
446,800,000  
 
Other intangible assets-net
39,900,000  
54,300,000  
  
Software-net
41,100,000  
41,600,000  
  
Deferred income taxes
22,200,000  
37,000,000  
  
Other noncurrent assets
38,100,000  
34,500,000  
  
Total assets
893,500,000  
978,900,000  
817,600,000  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable
67,800,000  
85,300,000  
  
Accrued liabilities
119,200,000  
100,700,000  
  
Total current liabilities
187,000,000  
186,000,000  
  
Long-term debt
458,300,000  
587,000,000  
  
Deferred compensation liabilities
22,800,000  
24,400,000  
  
Pension and other postretirement benefits plan liabilities
52,500,000  
56,400,000  
  
Other noncurrent liabilities
23,500,000  
14,000,000  
  
Total liabilities
744,100,000  
867,800,000  
  
Total equity
149,400,000  
111,100,000  
623,500,000  
351,500,000  
Total liabilities and equity
893,500,000  
978,900,000  
  
Consolidated Entities
Consolidated Entities
Consolidation Items
Consolidation Items
Related Party
R.R. Donnelley & Sons Company
ASSETS
 
 
 
 
Receivable from RR Donnelley
1
96,000,000 1
  
Consolidated Entities
Consolidated Entities
Consolidation Items
Eliminations
Related Party
Related Party
ASSETS
 
 
 
 
Cash and cash equivalents
 
(2,400,000) 
  
Intercompany receivables
(146,400,000) 
(63,000,000) 
  
Intercompany short-term note receivable-net
(30,000,000) 
(15,300,000) 
  
Prepaid expenses and other current assets
(25,100,000) 
   
Total current assets
(201,500,000) 
 
(80,700,000) 
 
 
 
 
 
Deferred income taxes
(21,700,000) 
   
Investments in consolidated subsidiaries
(813,600,000) 
(757,300,000) 
  
Total assets
(1,036,800,000) 
(838,000,000) 
  
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable
 
(2,400,000) 
  
Intercompany payable
(146,400,000) 
(62,500,000) 
  
Intercompany short-term note payable-net
(30,000,000) 
(15,300,000) 
  
Accrued liabilities
(25,100,000) 
(500,000) 
  
Total current liabilities
(201,500,000) 
(80,700,000) 
  
Other noncurrent liabilities
(21,700,000) 
   
Total liabilities
(223,200,000) 
(80,700,000) 
  
Total equity
(813,600,000) 
(757,300,000) 
  
Total liabilities and equity
(1,036,800,000) 
(838,000,000) 
  
Consolidated Entities
Parent
Consolidation Items
Consolidation Items
Related Party
Related Party
ASSETS
 
 
 
 
Cash and cash equivalents
8,300,000  
   
Prepaid expenses and other current assets
37,100,000  
4,300,000  
  
Total current assets
45,400,000  
 
72,300,000  
 
 
 
 
 
Other noncurrent assets
3,400,000  
4,400,000  
  
Investments in consolidated subsidiaries
728,400,000  
692,200,000  
  
Total assets
777,200,000  
768,900,000  
  
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable
 
3,400,000  
  
Intercompany payable
139,500,000  
43,900,000  
  
Intercompany short-term note payable-net
30,000,000  
15,300,000  
  
Accrued liabilities
 
8,200,000  
  
Total current liabilities
169,500,000  
70,800,000  
  
Long-term debt
458,300,000  
587,000,000  
  
Total liabilities
627,800,000  
657,800,000  
  
Total equity
149,400,000  
111,100,000  
  
Total liabilities and equity
777,200,000  
768,900,000  
  
Consolidated Entities
Parent
Consolidation Items
Consolidation Items
Related Party
R.R. Donnelley & Sons Company
ASSETS
 
 
 
 
Receivable from RR Donnelley
 
68,000,000  
  
Consolidated Entities
Guarantor Subsidiaries
Consolidation Items
Consolidation Items
Related Party
Related Party
ASSETS
 
 
 
 
Cash and cash equivalents
27,900,000  
21,800,000  
100,000  
100,000  
Receivables, less allowances
131,300,000  
119,900,000  
  
Intercompany receivables
146,400,000  
63,000,000  
  
Inventories
21,300,000  
22,700,000  
  
Prepaid expenses and other current assets
14,800,000  
8,100,000  
  
Total current assets
341,700,000  
 
263,500,000  
 
 
 
 
 
Property, plant and equipment-net
31,200,000  
32,400,000  
  
Goodwill
429,200,000  
429,200,000  
  
Other intangible assets-net
32,400,000  
44,000,000  
  
Software-net
40,600,000  
41,000,000  
  
Deferred income taxes
40,500,000  
34,200,000  
  
Other noncurrent assets
30,000,000  
27,700,000  
  
Investments in consolidated subsidiaries
85,200,000  
65,100,000  
  
Total assets
1,030,800,000  
937,100,000  
  
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable
57,900,000  
72,800,000  
  
Accrued liabilities
127,600,000  
81,400,000  
  
Total current liabilities
185,500,000  
154,200,000  
  
Deferred compensation liabilities
22,800,000  
24,400,000  
  
Pension and other postretirement benefits plan liabilities
51,300,000  
55,300,000  
  
Other noncurrent liabilities
42,800,000  
11,000,000  
  
Total liabilities
302,400,000  
244,900,000  
  
Total equity
728,400,000  
692,200,000  
  
Total liabilities and equity
1,030,800,000  
937,100,000  
  
Consolidated Entities
Guarantor Subsidiaries
Consolidation Items
Consolidation Items
Related Party
R.R. Donnelley & Sons Company
ASSETS
 
 
 
 
Receivable from RR Donnelley
 
28,000,000  
  
Consolidated Entities
Non-guarantor Subsidiaries
Consolidation Items
Consolidation Items
Related Party
Related Party
ASSETS
 
 
 
 
Cash and cash equivalents
15,800,000  
16,800,000  
15,000,000  
28,500,000  
Receivables, less allowances
33,900,000  
36,300,000  
  
Intercompany short-term note receivable-net
30,000,000  
15,300,000  
  
Inventories
2,000,000  
1,400,000  
  
Prepaid expenses and other current assets
2,800,000  
4,700,000  
  
Total current assets
84,500,000  
 
74,500,000  
 
 
 
 
 
Property, plant and equipment-net
3,500,000  
3,100,000  
  
Goodwill
18,200,000  
17,200,000  
  
Other intangible assets-net
7,500,000  
10,300,000  
  
Software-net
500,000  
600,000  
  
Deferred income taxes
3,400,000  
2,800,000  
  
Other noncurrent assets
4,700,000  
2,400,000  
  
Total assets
122,300,000  
110,900,000  
  
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable
9,900,000  
11,500,000  
  
Intercompany payable
6,900,000  
18,600,000  
  
Accrued liabilities
16,700,000  
11,600,000  
  
Total current liabilities
33,500,000  
41,700,000  
  
Pension and other postretirement benefits plan liabilities
1,200,000  
1,100,000  
  
Other noncurrent liabilities
2,400,000  
3,000,000  
  
Total liabilities
37,100,000  
45,800,000  
  
Total equity
85,200,000  
65,100,000  
  
Total liabilities and equity
122,300,000  
110,900,000  
  
1: Beginning in the quarter ended September 30, 2017, RRD no longer qualified as a related party.

Component: (Network and Table)
Network
101090 - Disclosure - Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationCondensedConsolidatingStatementsOfCashFlowsDetails)
TableCondensed Cash Flow Statement [Table]
Slicers (applies to each fact value in each table cell)
Condensed Cash Flow Statements Captions [Line Items]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
2015-01-01 - 2015-12-31
Consolidated EntitiesConsolidated EntitiesConsolidated Entities
ParentGuarantor SubsidiariesNon-guarantor SubsidiariesConsolidated EntitiesParentGuarantor SubsidiariesNon-guarantor SubsidiariesConsolidated EntitiesGuarantor SubsidiariesNon-guarantor SubsidiariesConsolidated Entities
Consolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation Items
Consolidation ItemsConsolidation ItemsConsolidation ItemsEliminationsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation ItemsEliminationsConsolidation ItemsConsolidation ItemsConsolidation ItemsConsolidation Items
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
39,300,000  
35,700,000  
14,000,000  
2,400,000  
91,400,000  
(1,200,000) 
103,200,000  
6,400,000  
(2,400,000) 
106,000,000  
106,700,000  
14,200,000  
120,900,000  
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(26,400,000) 
(1,400,000) 
 
(27,800,000) 
 
(23,600,000) 
(2,600,000) 
 
(26,200,000) 
(25,900,000) 
(1,200,000) 
(27,100,000) 
Purchases of investments
 
(3,400,000) 
  
(3,400,000) 
 
(3,500,000) 
  
(3,500,000) 
(10,000,000) 
 
(10,000,000) 
Intercompany note receivable, net
  
(14,700,000) 
14,700,000  
         
Other investing activities
 
200,000  
  
200,000  
  
400,000  
 
400,000  
  
 
Net cash used in investing activities
 
(29,600,000) 
(16,100,000) 
14,700,000  
(31,000,000) 
 
(27,100,000) 
(2,200,000) 
 
(29,300,000) 
(35,900,000) 
(1,200,000) 
(37,100,000) 
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving facility borrowings
298,500,000  
   
298,500,000  
    
 
  
 
Payments on revolving facility borrowings
(298,500,000) 
   
(298,500,000) 
    
 
  
 
Payments on long-term debt
(133,000,000) 
   
(133,000,000) 
(50,000,000) 
   
(50,000,000) 
  
 
Net change in short-term debt
    
 
  
(8,800,000) 
 
(8,800,000) 
 
(24,000,000) 
(24,000,000) 
Payments on note payable with an RRD affiliate
    
 
    
 
(14,600,000) 
(200,000) 
(14,800,000) 
Debt issuance costs
(2,100,000) 
   
(2,100,000) 
(9,300,000) 
   
(9,300,000) 
  
 
Net transfers to Parent and affiliates
    
 
(287,700,000) 
(54,400,000) 
2,000,000  
 
(340,100,000) 
(56,200,000) 
200,000  
(56,000,000) 
Separation-related payment from R.R. Donnelley
68,000,000  
   
68,000,000  
    
 
  
 
Proceeds from the issuance of common stock
18,800,000  
   
18,800,000  
    
 
  
 
Proceeds from issuance of long-term debt
3,100,000  
   
3,100,000  
348,200,000  
   
348,200,000  
  
 
Treasury stock repurchases
(900,000) 
   
(900,000) 
    
 
  
 
Intercompany note payable, net
14,700,000  
  
(14,700,000) 
         
Other financing activities
400,000  
   
400,000  
    
 
  
 
Net cash used in financing activities
(31,000,000) 
  
(14,700,000) 
(45,700,000) 
1,200,000  
(54,400,000) 
(6,800,000) 
 
(60,000,000) 
(70,800,000) 
(24,000,000) 
(94,800,000) 
Effect of exchange rate on cash and cash equivalents
  
1,100,000  
 
1,100,000  
  
4,400,000  
 
4,400,000  
 
(2,500,000) 
(2,500,000) 
Net increase (decrease) in cash and cash equivalents
8,300,000  
6,100,000  
(1,000,000) 
2,400,000  
15,800,000  
 
21,700,000  
1,800,000  
(2,400,000) 
21,100,000  
 
(13,500,000) 
(13,500,000) 
Cash and cash equivalents at beginning of year
 
21,800,000  
16,800,000  
(2,400,000) 
36,200,000  
 
100,000  
15,000,000  
 
15,100,000  
100,000  
28,500,000  
28,600,000  
Cash and cash equivalents at end of period
8,300,000  
 
27,900,000  
 
15,800,000  
 
 
 
52,000,000  
 
 
 
21,800,000  
 
16,800,000  
 
(2,400,000) 
 
36,200,000  
 
100,000  
 
15,000,000  
 
15,100,000  
 
Supplemental non-cash disclosure:
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt exchange with R.R. Donnelley, including $5.5 million of debt issuance costs
    
 
300,000,000  
   
300,000,000  
  
 
Settlement of intercompany note payable
    
 
 
29,600,000  
  
29,600,000  
  
 
Accrued debt issuance costs
    
 
1,500,000  
   
1,500,000  
  
 

Component: (Network and Table)
Network
101100 - Disclosure - Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Parenthetical) (Details)
(http://www.dfsco.com/20171231/taxonomy/role/DisclosureGuarantorFinancialInformationCondensedConsolidatingStatementsOfCashFlowsParentheticalDetails)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]Period [Axis]
2017-01-01 - 2017-12-31
2016-01-01 - 2016-12-31
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
 
 
Debt issuance costs
5,500,000  
5,500,000