Donnelley Financial Solutions, Inc. - S-4 filing on 2017-03-10

Guarantor Financial Information - (Tables)

12 Months Ended

Dec. 31, 2016

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, 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	)

Guarantor Financial Information Condensed Consolidating Balance Sheet

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

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

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