Guarantor Financial Information

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Guarantor Financial Information

Note 16. Guarantor Financial Information  

As described in Note 13, 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 DFIN or a subsidiary guarantor of the Notes, the liquidation or dissolution of such subsidiary guarantor, and if such subsidiary guarantor is released from its guarantee obligations under the Company’s Credit Facilities.

The following tables set forth condensed consolidating statements of income for the three and nine months ended September 30, 2019 and 2018, condensed consolidating statements of financial position as of September 30, 2019 and December 31, 2018, and condensed consolidating statements of cash flows for the nine months ended September 30, 2019 and 2018. 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

For the Three Months Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
Services net sales	$	—		$	112.8		$	19.3		$	(1.7	)	$	130.4
Products net sales		—			62.4			3.7			(0.6	)		65.5
Total net sales		—			175.2			23.0			(2.3	)		195.9
Services cost of sales (exclusive of depreciation and amortization)		—			55.9			12.4			(1.4	)		66.9
Products cost of sales (exclusive of depreciation and amortization)		—			52.2			3.1			(0.9	)		54.4
Total cost of sales		—			108.1			15.5			(2.3	)		121.3
Selling, general and administrative expenses (exclusive of depreciation and amortization)		—			39.9			6.3			—			46.2
Restructuring, impairment and other charges-net		—			2.8			—			—			2.8
Depreciation and amortization		—			10.7			2.0			—			12.7
Other operating income		—			(19.2	)		—			—			(19.2	)
Income (loss) from operations		—			32.9			(0.8	)		—			32.1
Interest expense (income)-net		8.7			0.1			(0.2	)		—			8.6
Intercompany interest (income) expense-net		(5.7	)		5.7			—			—			—
Investment and other income-net		—			(0.5	)		—			—			(0.5	)
(Loss) earnings before income taxes and equity in net income of subsidiaries		(3.0	)		27.6			(0.6	)		—			24.0
Income tax (benefit) expense		(1.3	)		10.9			(0.3	)		—			9.3
(Loss) earnings before equity in net income of subsidiaries		(1.7	)		16.7			(0.3	)		—			14.7
Equity in net income of subsidiaries		16.4			(0.3	)		—			(16.1	)		—
Net earnings (loss)	$	14.7		$	16.4		$	(0.3	)	$	(16.1	)	$	14.7
Comprehensive income (loss)	$	14.6		$	16.3		$	(0.7	)	$	(15.6	)	$	14.6

Condensed Consolidating Statements of Operations

For the Nine Months Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
Services net sales	$	—		$	359.1		$	65.2		$	(4.8	)	$	419.5
Products net sales		—			246.2			21.3			(2.6	)		264.9
Total net sales		—			605.3			86.5			(7.4	)		684.4
Services cost of sales (exclusive of depreciation and amortization)		—			177.4			44.6			(4.1	)		217.9
Products cost of sales (exclusive of depreciation and amortization)		—			193.9			15.7			(3.3	)		206.3
Total cost of sales		—			371.3			60.3			(7.4	)		424.2
Selling, general and administrative expenses (exclusive of depreciation and amortization)		—			137.9			21.1			—			159.0
Restructuring, impairment and other charges-net		—			7.7			1.0			—			8.7
Depreciation and amortization		—			31.4			5.4			—			36.8
Other operating (income) loss		—			(18.0	)		1.6			—			(16.4	)
Income (loss) from operations		—			75.0			(2.9	)		—			72.1
Interest expense (income)-net		27.3			—			(0.7	)		—			26.6
Intercompany interest (income) expense-net		(17.2	)		17.2			—			—			—
Investment and other income-net		—			(1.6	)		—			—			(1.6	)
(Loss) earnings before income taxes and equity in net income of subsidiaries		(10.1	)		59.4			(2.2	)		—			47.1
Income tax (benefit) expense		(3.5	)		20.8			(0.8	)		—			16.5
(Loss) earnings before equity in net income of subsidiaries		(6.6	)		38.6			(1.4	)		—			30.6
Equity in net income of subsidiaries		37.2			(1.4	)		—			(35.8	)		—
Net earnings (loss)	$	30.6		$	37.2		$	(1.4	)	$	(35.8	)	$	30.6
Comprehensive income	$	33.9		$	40.5		$	0.9		$	(41.4	)	$	33.9

Condensed Consolidating Statements of Operations

For the Three Months Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
Services net sales	$	—		$	115.6		$	24.9		$	(2.0	)	$	138.5
Products net sales		—			72.3			7.0			(0.9	)		78.4
Total net sales		—			187.9			31.9			(2.9	)		216.9
Services cost of sales (exclusive of depreciation and amortization)		—			60.4			16.9			(1.8	)		75.5
Products cost of sales (exclusive of depreciation and amortization)		—			54.3			4.6			(1.1	)		57.8
Total cost of sales		—			114.7			21.5			(2.9	)		133.3
Selling, general and administrative expenses (exclusive of depreciation and amortization)		—			53.2			9.4			—			62.6
Restructuring, impairment and other charges-net		—			0.7			0.1			—			0.8
Depreciation and amortization		—			10.4			1.2			—			11.6
Other operating income		—			(26.6	)		(26.9	)		—			(53.5	)
Income from operations		—			35.5			26.6			—			62.1
Interest expense (income)-net		8.6			—			(0.2	)		—			8.4
Intercompany interest (income) expense-net		(6.1	)		6.1			—			—			—
Investment and other income-net		—			(12.6	)		(1.4	)		—			(14.0	)
(Loss) earnings before income taxes and equity in net income of subsidiaries		(2.5	)		42.0			28.2			—			67.7
Income tax (benefit) expense		(0.8	)		13.2			7.3			—			19.7
(Loss) earnings before equity in net income of subsidiaries		(1.7	)		28.8			20.9			—			48.0
Equity in net income of subsidiaries		49.7			20.9			—			(70.6	)		—
Net earnings	$	48.0		$	49.7		$	20.9		$	(70.6	)	$	48.0
Comprehensive income	$	48.8		$	50.5		$	21.5		$	(72.0	)	$	48.8

Condensed Consolidating Statements of Operations

For the Nine Months Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
Services net sales	$	—		$	397.7		$	94.1		$	(5.9	)	$	485.9
Products net sales		—			251.0			29.0			(3.2	)		276.8
Total net sales		—			648.7			123.1			(9.1	)		762.7
Services cost of sales (exclusive of depreciation and amortization)		—			196.9			61.6			(5.1	)		253.4
Products cost of sales (exclusive of depreciation and amortization)		—			187.2			20.9			(4.0	)		204.1
Total cost of sales		—			384.1			82.5			(9.1	)		457.5
Selling, general and administrative expenses (exclusive of depreciation and amortization)		—			172.9			30.9			—			203.8
Restructuring, impairment and other charges-net		—			2.2			1.9			—			4.1
Depreciation and amortization		—			29.1			4.0			—			33.1
Other operating income		—			(26.6	)		(26.9	)		—			(53.5	)
Income from operations		—			87.0			30.7			—			117.7
Interest expense (income)-net		27.9			(0.3	)		(0.4	)		—			27.2
Intercompany interest (income) expense-net		(19.4	)		19.4			—			—			—
Investment and other income-net		—			(14.2	)		(1.4	)		—			(15.6	)
(Loss) earnings before income taxes and equity in net income of subsidiaries		(8.5	)		82.1			32.5			—			106.1
Income tax (benefit) expense		(2.6	)		25.5			8.6			—			31.5
(Loss) earnings before equity in net income of subsidiaries		(5.9	)		56.6			23.9			—			74.6
Equity in net income of subsidiaries		80.5			23.9			—			(104.4	)		—
Net earnings	$	74.6		$	80.5		$	23.9		$	(104.4	)	$	74.6
Comprehensive income	$	73.7		$	79.6		$	21.7		$	(101.3	)	$	73.7

Condensed Consolidating Balance Sheet

As of September 30, 2019

	Parent		Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	17.4	$	2.6	$	12.1	$	—		$	32.1
Receivables, less allowances		—		166.6		34.6		—			201.2
Intercompany receivables		—		121.1		—		(121.1	)		—
Inventories		—		11.1		2.6		—			13.7
Prepaid expenses and other current assets		4.5		13.8		2.7		—			21.0
Total current assets		21.9		315.2		52.0		(121.1	)		268.0
Property, plant and equipment-net		—		23.0		2.0		—			25.0
Right-of-use assets		—		72.2		13.5		—			85.7
Software-net		—		53.6		—		—			53.6
Goodwill		—		438.6		11.6		—			450.2
Other intangible assets-net		—		23.6		2.7		—			26.3
Deferred income taxes		—		10.0		2.5		(1.7	)		10.8
Intercompany long-term note receivable		298.0		—		—		(298.0	)		—
Other noncurrent assets		3.3		35.4		4.0		—			42.7
Investments in consolidated subsidiaries		434.2		53.3		—		(487.5	)		—
Total assets	$	757.4	$	1,024.9	$	88.3	$	(908.3	)	$	962.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	—	$	42.5	$	8.1	$	—		$	50.6
Intercompany payables		118.9		—		2.2		(121.1	)		—
Accrued liabilities		5.6		122.8		14.5		—			142.9
Total current liabilities		124.5		165.3		24.8		(121.1	)		193.5
Long-term debt		364.1		—		—		—			364.1
Intercompany long-term note payable		—		298.0		—		(298.0	)		—
Deferred compensation liabilities		—		19.8		—		—			19.8
Pension and other postretirement benefits plan liabilities		—		46.7		1.0		—			47.7
Noncurrent lease liabilities		—		54.8		8.4		—			63.2
Other noncurrent liabilities		2.7		6.1		0.8		(1.7	)		7.9
Total liabilities		491.3		590.7		35.0		(420.8	)		696.2
Total equity		266.1		434.2		53.3		(487.5	)		266.1
Total liabilities and equity	$	757.4	$	1,024.9	$	88.3	$	(908.3	)	$	962.3

Condensed Consolidating Balance Sheet

As of December 31, 2018

	Parent		Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	24.9	$	5.0	$	17.4	$	—		$	47.3
Receivables, less allowances		—		141.6		31.3		—			172.9
Intercompany receivables		—		123.6		—		(123.6	)		—
Intercompany short-term note receivable-net		—		—		60.5		(60.5	)		—
Inventories		—		10.4		1.7		—			12.1
Prepaid expenses and other current assets		—		13.5		3.2		—			16.7
Total current assets		24.9		294.1		114.1		(184.1	)		249.0
Property, plant and equipment-net		—		29.3		2.9		—			32.2
Software-net		—		47.8		—		—			47.8
Goodwill		—		438.5		11.5		—			450.0
Other intangible assets-net		—		32.6		4.6		—			37.2
Deferred income taxes		—		37.2		2.4		(29.9	)		9.7
Intercompany long-term note receivable		298.0		—		—		(298.0	)		—
Other noncurrent assets		3.6		35.1		4.1		—			42.8
Investments in consolidated subsidiaries		445.9		106.0		—		(551.9	)		—
Total assets	$	772.4	$	1,020.6	$	139.6	$	(1,063.9	)	$	868.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	—	$	61.0	$	11.4	$	—		$	72.4
Intercompany payables		120.9		—		2.7		(123.6	)		—
Intercompany short-term note payable-net		60.0		0.5		—		(60.5	)		—
Accrued liabilities		0.1		109.2		16.7		—			126.0
Total current liabilities		181.0		170.7		30.8		(184.1	)		198.4
Long-term debt		362.7		—		—		—			362.7
Intercompany long-term note payable		—		298.0		—		(298.0	)		—
Deferred compensation liabilities		—		19.5		—		—			19.5
Pension and other postretirement benefits plan liabilities		—		50.3		1.0		—			51.3
Other noncurrent liabilities		2.7		36.2		1.8		(29.9	)		10.8
Total liabilities		546.4		574.7		33.6		(512.0	)		642.7
Total equity		226.0		445.9		106.0		(551.9	)		226.0
Total liabilities and equity	$	772.4	$	1,020.6	$	139.6	$	(1,063.9	)	$	868.7

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	54.5		$	9.2		$	(14.8	)	$	(53.1	)	$	(4.2	)
INVESTING ACTIVITIES
Capital expenditures		—			(35.0	)		(0.1	)		—			(35.1	)
Proceeds from sale of building		—			30.6			—			—			30.6
Acquisition of business, net of cash acquired		—			(2.6	)		—			—			(2.6	)
Purchase of investment		—			(2.3	)		—			—			(2.3	)
Intercompany note receivable, net		—			—			60.5			(60.5	)		—
Net cash (used in) provided by investing activities		—			(9.3	)		60.4			(60.5	)		(9.4	)
FINANCING ACTIVITIES
Revolving facility borrowings		413.0			—			—			—			413.0
Payments on revolving facility borrowings		(413.0	)		—			—			—			(413.0	)
Intercompany note payable, net		(60.5	)		—			—			60.5			—
Dividends paid to Parent		—			—			(53.1	)		53.1			—
Treasury share repurchases		(1.3	)		—			—			—			(1.3	)
Debt issuance costs		(0.2	)		—			—			—			(0.2	)
Net cash used in financing activities		(62.0	)		—			(53.1	)		113.6			(1.5	)
Effect of exchange rate on cash, cash equivalents and restricted cash		—			—			2.2			—			2.2
Net decrease in cash, cash equivalents and restricted cash		(7.5	)		(0.1	)		(5.3	)		—			(12.9	)
Cash, cash equivalents and restricted cash at beginning of year		24.9			5.1			17.4			—			47.4
Cash, cash equivalents and restricted cash at end of period	$	17.4		$	5.0		$	12.1		$	—		$	34.5

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	59.3		$	(38.0	)	$	(10.9	)	$	—		$	10.4
INVESTING ACTIVITIES
Capital expenditures		—			(21.9	)		(0.9	)		—			(22.8	)
Sale of investment		—			3.1			—			—			3.1
Proceeds from disposition		—			34.5			42.6			—			77.1
Intercompany note receivable, net		—			—			(15.0	)		15.0			—
Net cash provided by investing activities		—			15.7			26.7			15.0			57.4
FINANCING ACTIVITIES
Revolving facility borrowings		255.0			—			—			—			255.0
Payments on revolving facility borrowings		(255.0	)		—			—			—			(255.0	)
Payments on long-term debt		(62.5	)		—			—			—			(62.5	)
Intercompany note payable, net		15.0			—			—			(15.0	)		—
Proceeds from the issuance of common stock		1.2			—			—			—			1.2
Treasury share repurchases		(0.8	)		—			—			—			(0.8	)
Net cash used in financing activities		(47.1	)		—			—			(15.0	)		(62.1	)
Effect of exchange rate on cash and cash equivalents		—			—			(1.5	)		—			(1.5	)
Net increase (decrease) in cash and cash equivalents		12.2			(22.3	)		14.3			—			4.2
Cash and cash equivalents at beginning of year		8.3			27.9			15.8			—			52.0
Cash and cash equivalents at end of period	$	20.5		$	5.6		$	30.1		$	—		$	56.2
Supplemental non-cash disclosure:
Intercompany debt allocation	$	(326.0	)	$	326.0		$	—		$	—		$	—