Note 22. Guarantor Financial Information
As described in Note 13, Debt, on September 30, 2016, the Company issued $300.0 million of 8.25% senior unsecured notes due October 15, 2024. Donnelley Financial, LLC and DFS International Holding, Inc. (together the “Guarantor Subsidiaries”) entered into an agreement pursuant to which each agreed to guarantee the obligations of Donnelley Financial Solutions, Inc. (the “Parent”) under the Notes. All guarantees are full and unconditional and joint and several. The Guarantor Subsidiaries are 100% directly owned subsidiaries of the Parent.
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, 2016, 2015, and 2014, condensed consolidating statements of financial position as of December 31, 2016 and December 31, 2015, and condensed consolidating statements of cash flows for the years ended December 31, 2016, 2015, and 2014. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.
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 RR 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 RR 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 RR 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 RR 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 Statements of Operations
Year Ended December 31, 2014
|
|
Parent |
|
|
Guarantor Subsidiaries |
|
|
Non-guarantor Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services net sales |
$ |
— |
|
|
$ |
529.7 |
|
|
$ |
116.2 |
|
|
$ |
(7.7 |
) |
|
$ |
638.2 |
|
|
Products net sales |
|
— |
|
|
|
396.3 |
|
|
|
50.7 |
|
|
|
(5.1 |
) |
|
|
441.9 |
|
|
Total net sales |
|
— |
|
|
|
926.0 |
|
|
|
166.9 |
|
|
|
(12.8 |
) |
|
|
1,080.1 |
|
|
Services cost of sales (exclusive of depreciation and amortization) |
|
— |
|
|
|
237.3 |
|
|
|
70.8 |
|
|
|
(6.9 |
) |
|
|
301.2 |
|
|
Services cost of sales with RR Donnelley affiliates (exclusive of depreciation and amortization) |
|
— |
|
|
|
36.9 |
|
|
|
2.4 |
|
|
|
— |
|
|
|
39.3 |
|
|
Products cost of sales (exclusive of depreciation and amortization) |
|
— |
|
|
|
208.8 |
|
|
|
33.4 |
|
|
|
(5.9 |
) |
|
|
236.3 |
|
|
Products cost of sales with RR Donnelley affiliates (exclusive of depreciation and amortization) |
|
— |
|
|
|
76.3 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
76.5 |
|
|
Total cost of sales |
|
— |
|
|
|
559.3 |
|
|
|
106.8 |
|
|
|
(12.8 |
) |
|
|
653.3 |
|
|
Selling, general and administrative expenses (exclusive of depreciation and amortization) |
|
— |
|
|
|
254.7 |
|
|
|
35.8 |
|
|
|
— |
|
|
|
290.5 |
|
|
Restructuring, impairment and other charges-net |
|
— |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
— |
|
|
|
4.8 |
|
|
Depreciation and amortization |
|
— |
|
|
|
36.1 |
|
|
|
4.6 |
|
|
|
— |
|
|
|
40.7 |
|
|
Income from operations |
|
— |
|
|
|
73.4 |
|
|
|
17.4 |
|
|
|
— |
|
|
|
90.8 |
|
|
Interest expense-net |
|
— |
|
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
Investment and other income-net |
|
— |
|
|
|
(3.0 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
Earnings before income taxes and equity in net income of subsidiaries |
|
— |
|
|
|
74.9 |
|
|
|
17.5 |
|
|
|
— |
|
|
|
92.4 |
|
|
Income tax expense |
|
— |
|
|
|
31.1 |
|
|
|
3.9 |
|
|
|
— |
|
|
|
35.0 |
|
|
Earnings before equity in net income of subsidiaries |
|
— |
|
|
|
43.8 |
|
|
|
13.6 |
|
|
|
— |
|
|
|
57.4 |
|
|
Equity in net income of subsidiaries |
|
57.4 |
|
|
|
13.6 |
|
|
|
— |
|
|
|
(71.0 |
) |
|
|
— |
|
|
Net earnings (loss) |
$ |
57.4 |
|
|
$ |
57.4 |
|
|
$ |
13.6 |
|
|
$ |
(71.0 |
) |
|
$ |
57.4 |
|
|
Comprehensive (loss) income |
$ |
(115.4 |
) |
|
$ |
(115.4 |
) |
|
$ |
10.7 |
|
|
$ |
104.7 |
|
|
$ |
(115.4 |
) |
Condensed Consolidating Balance Sheets
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 RR 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 STOCKHOLDERS' 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 Balance Sheets
December 31, 2015
|
|
Parent |
|
|
Guarantor Subsidiaries |
|
|
Non-guarantor Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
15.0 |
|
|
$ |
— |
|
|
$ |
15.1 |
|
|
Receivables, less allowances |
|
— |
|
|
|
115.0 |
|
|
|
31.2 |
|
|
|
— |
|
|
|
146.2 |
|
|
Intercompany receivables |
|
— |
|
|
|
7.4 |
|
|
|
— |
|
|
|
(7.4 |
) |
|
|
— |
|
|
Inventories |
|
— |
|
|
|
21.4 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
22.2 |
|
|
Prepaid expenses and other current assets |
|
— |
|
|
|
3.0 |
|
|
|
4.3 |
|
|
|
— |
|
|
|
7.3 |
|
|
Total current assets |
|
— |
|
|
|
146.9 |
|
|
|
51.3 |
|
|
|
(7.4 |
) |
|
|
190.8 |
|
|
Property, plant and equipment-net |
|
— |
|
|
|
31.0 |
|
|
|
2.0 |
|
|
|
— |
|
|
|
33.0 |
|
|
Goodwill |
|
— |
|
|
|
429.2 |
|
|
|
17.6 |
|
|
|
— |
|
|
|
446.8 |
|
|
Other intangible assets-net |
|
— |
|
|
|
55.8 |
|
|
|
13.5 |
|
|
|
— |
|
|
|
69.3 |
|
|
Software-net |
|
— |
|
|
|
42.3 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
43.4 |
|
|
Deferred income taxes |
|
— |
|
|
|
10.4 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
10.6 |
|
|
Other noncurrent assets |
|
— |
|
|
|
20.6 |
|
|
|
3.1 |
|
|
|
— |
|
|
|
23.7 |
|
|
Investments in consolidated subsidiaries |
|
623.5 |
|
|
|
50.2 |
|
|
|
— |
|
|
|
(673.7 |
) |
|
|
— |
|
|
Total assets |
$ |
623.5 |
|
|
$ |
786.4 |
|
|
$ |
88.8 |
|
|
$ |
(681.1 |
) |
|
$ |
817.6 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
— |
|
|
$ |
31.7 |
|
|
$ |
7.8 |
|
|
$ |
— |
|
|
$ |
39.5 |
|
|
Intercompany payable |
|
— |
|
|
|
— |
|
|
|
7.4 |
|
|
|
(7.4 |
) |
|
|
— |
|
|
Accrued liabilities |
|
— |
|
|
|
62.8 |
|
|
|
12.6 |
|
|
|
— |
|
|
|
75.4 |
|
|
Short-term debt |
|
— |
|
|
|
— |
|
|
|
8.8 |
|
|
|
— |
|
|
|
8.8 |
|
|
Total current liabilities |
|
— |
|
|
|
94.5 |
|
|
|
36.6 |
|
|
|
(7.4 |
) |
|
|
123.7 |
|
|
Note payable with an RRD affiliate |
|
— |
|
|
|
29.2 |
|
|
|
— |
|
|
|
— |
|
|
|
29.2 |
|
|
Deferred compensation liabilities |
|
— |
|
|
|
28.5 |
|
|
|
— |
|
|
|
— |
|
|
|
28.5 |
|
|
Other noncurrent liabilities |
|
— |
|
|
|
10.7 |
|
|
|
2.0 |
|
|
|
— |
|
|
|
12.7 |
|
|
Total liabilities |
|
— |
|
|
|
162.9 |
|
|
|
38.6 |
|
|
|
(7.4 |
) |
|
|
194.1 |
|
|
Total equity |
|
623.5 |
|
|
|
623.5 |
|
|
|
50.2 |
|
|
|
(673.7 |
) |
|
|
623.5 |
|
|
Total liabilities and equity |
$ |
623.5 |
|
|
$ |
786.4 |
|
|
$ |
88.8 |
|
|
$ |
(681.1 |
) |
|
$ |
817.6 |
|
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 RR 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 |
|
Condensed Consolidating Statements of Cash Flows
Year Ended December 31, 2014
|
|
Parent |
|
|
Guarantor Subsidiaries |
|
|
Non-guarantor Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
— |
|
|
$ |
108.0 |
|
|
$ |
17.3 |
|
|
$ |
— |
|
|
$ |
125.3 |
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
— |
|
|
|
(27.3 |
) |
|
|
(1.5 |
) |
|
|
— |
|
|
|
(28.8 |
) |
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(6.0 |
) |
|
|
— |
|
|
|
(6.0 |
) |
|
Proceeds from sales of other assets |
|
— |
|
|
|
5.3 |
|
|
|
— |
|
|
|
— |
|
|
|
5.3 |
|
|
Net cash used in investing activities |
|
— |
|
|
|
(22.0 |
) |
|
|
(7.5 |
) |
|
|
— |
|
|
|
(29.5 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in short-term debt |
|
— |
|
|
|
— |
|
|
|
(12.8 |
) |
|
|
— |
|
|
|
(12.8 |
) |
|
Payments on note payable with an RRD affiliate |
|
— |
|
|
|
(14.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14.7 |
) |
|
Net transfers to Parent and affiliates |
|
— |
|
|
|
(71.9 |
) |
|
|
9.0 |
|
|
|
— |
|
|
|
(62.9 |
) |
|
Net cash used in financing activities |
|
— |
|
|
|
(86.6 |
) |
|
|
(3.8 |
) |
|
|
— |
|
|
|
(90.4 |
) |
|
Effect of exchange rate on cash and cash equivalents |
|
— |
|
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
|
2.0 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
— |
|
|
|
(0.6 |
) |
|
|
8.0 |
|
|
|
— |
|
|
|
7.4 |
|
|
Cash and cash equivalents at beginning of year |
|
— |
|
|
|
0.7 |
|
|
|
20.5 |
|
|
|
— |
|
|
|
21.2 |
|
|
Cash and cash equivalents at end of period |
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
28.5 |
|
|
$ |
— |
|
|
$ |
28.6 |
|