Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

The Company had firm commitments of $26.6 million as of December 31, 2019, to purchase press and finishing equipment.

Litigation

The Company is named as a defendant in various lawsuits in which claims are asserted against the Company in the normal course of business. The liabilities, if any, which ultimately result from such lawsuits are not expected by management to have a material impact on the consolidated financial statements of the Company.

Beginning in April 2016, the Company self-reported to the SEC and to the United States Department of Justice (“DOJ”) certain Foreign Corrupt Practices Act (“FCPA”) issues arising from its operations managed from Peru, and from Quad/Tech China. Also, during the course of its internal investigation of these matters, the Company identified and informed the Office of Foreign Assets Control (“OFAC”), the DOJ and the SEC of certain transactions involving Cuba arising from the Company’s operations managed from Peru. During the third quarter of 2019, the Company and the SEC entered into a resolution of these matters and the Company paid $9.9 million to the SEC in October 2019. The DOJ declined to bring any action against the Company, citing the Company’s voluntary and prompt self-reporting, cooperation and full remediation.

During the third and fourth quarters of 2019, the Company and the Peruvian antitrust authority, INDECOPI, negotiated agreements regarding INDECOPI’s investigation into certain competition law issues with regard to private and public sector clients, and the Company agreed to pay a total of $6.9 million during the next four years, beginning in January 2020.

Environmental Reserves

The Company is subject to various laws, regulations and government policies relating to health and safety, to the generation, storage, transportation, and disposal of hazardous substances, and to environment protection in general. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such reserves are adjusted as new information develops or as circumstances change. The environmental reserves are not discounted. The Company believes it is in compliance with such laws, regulations and government policies in all material respects. Furthermore, the Company does not anticipate that maintaining compliance with such environmental statutes will have a material impact upon the Company’s consolidated financial position.