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Recently Issued Accounting Standards Not Yet Adopted | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) | The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. | January 1, 2018; early adoption date is no earlier than the annual period beginning after December 15, 2016 | The Company’s analysis of the impact of this standard is ongoing. Focus areas include the impacts of accounting for customer dedicated inventory and principal/agent considerations. During the third quarter, work continued on the disclosure requirements and internal control assessments. As the analysis is not yet complete, the Company cannot provide a financial impact assessment at this time, nor provide a determination as to the effect of the new standard on its internal control over financial reporting and other changes in business practices and processes. The Company anticipates applying the modified retrospective method of adoption. The Company will adopt this ASU on January 1, 2018. | |||
ASU 2016-02, Leases (Topic 842) | The standard requires lessees to put most leases on their balance sheet but recognize expenses in their statement of operations in a manner similar to current accounting guidance. The new standard also eliminates the current guidance related to real estate specific provisions. The guidance requires application on a modified retrospective basis to leases that existed at the beginning of the earliest period presented and those entered into thereafter but prior to the effective date. The standard permits entities to elect a package of practical expedients which must be applied consistently to all leases that commenced prior to the effective date. If the package of practical expedients is elected, entities do not need to reassess: (i) whether expired or existing contracts contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The guidance also allows entities to make certain policy elections under the new standard, including: (i) the use of hindsight to determine lease term and when assessing existing right of use assets for impairment; (ii) a policy to not record short-term leases on the balance sheet; and (iii) a policy to not separate lease and non-lease components. | January 1, 2019; early adoption is permitted | The Company is currently evaluating this standard and anticipates that its adoption will have a material impact on the Consolidated Financial Statements and related disclosures as it will result in recording virtually all operating leases on the balance sheet as a lease obligation and right of use asset. The Company’s preliminary assessment has focused on system readiness and the policy elections and practical expedients permitted by the standard. Lease software has been implemented that will better enable the Company to implement the standard. The Company currently anticipates electing to apply the package of practical expedients to all leases that commenced prior to the date of adoption. Based on the analysis performed to date, the Company anticipates making a policy election to not include short-term leases on the Consolidated Balance Sheets and to separate lease and non-lease components. A decision has not been made regarding the use of hindsight when determining lease term and assessing existing right of use assets for impairment. The assessment is ongoing and the preliminary conclusions are subject to change. At this time the Company is unable to quantify the impact that the adoption of this standard will have on the Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2019. | |||
Recently Issued Accounting Standards Not Yet Adopted (continued) | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) | The standard will replace the currently required incurred loss impairment methodology with guidance that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to be considered in making credit loss estimates. The guidance requires application on a modified retrospective basis. Other application requirements exist for specific assets impacted by a more-than-insignificant credit deterioration since origination. | January 1, 2020; early adoption is permitted for fiscal years beginning after December 15, 2018 | The Company is currently evaluating the impact this ASU will have on its Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2020. | |||
ASU 2016-15, Statement of Cash Flows (Topic 230) | The standard addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance requires application on a retrospective basis. | January 1, 2018; early adoption is permitted (early adoption requires the adoption of all amendments in the same period) | The Company is currently evaluating the impact this ASU will have on its Consolidated Financial Statements and related disclosures; the impact is not expected to be material. The Company will adopt this ASU on January 1, 2018. | |||
ASU 2017-01, Business Combinations (Topic 805) | The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance requires application on a prospective basis. | January 1, 2018; early adoption is permitted | The Company will adopt this ASU on January 1, 2018. | |||
ASU 2017-07, Compensation-Retirement Benefits (Topic 715) | The standard requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount of net benefit cost that is included in the income statement or capitalized in assets, by line item. The standard requires employers to report the service cost component in the same line item(s) as other compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs from prior periods and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The standard also allows only the service cost component to be eligible for capitalization when applicable. The guidance requires application on a retrospective basis for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and on a prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. | January 1, 2018; early adoption is permitted as of the first interim period of an annual period for which interim or annual financial statements have not been issued | The Company is currently making its assessment of the impact that this ASU will have on its Consolidated Financial Statements and related disclosures using results from 2016 and year-to-date 2017; the impact is not expected to be material. The Company will adopt this ASU on January 1, 2018. |
Recently Adopted Accounting Standards | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
ASU 2015-11, Inventory - Simplifying the Measurement of Inventory (Topic 330) | The standard requires companies to measure inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This ASU does not apply to inventories measured by either the last-in first-out ("LIFO") method or retail inventory method. The guidance requires application on a prospective basis. | January 1, 2017 | The Company adopted this ASU on January 1, 2017. The adoption did not materially impact its Consolidated Financial Statements or related disclosures. As of September 30, 2017, approximately 87% of the inventory balance was measured using LIFO. | |||
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) | The standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The guidance requires application on a prospective basis. | January 1, 2020; early adoption is permitted | The Company adopted this ASU on January 1, 2017. | |||
ASU 2017-09, Compensation - Stock Compensation (Topic 718) | The standard clarifies the changes to the terms and conditions of a share-based payment award that require an entity to apply modification accounting. The guidance requires application on a prospective basis. | January 1, 2018; early adoption is permitted | The Company adopted this ASU on April 1, 2017. The adoption did not materially impact its Consolidated Financial Statements or related disclosures. |
|
(in millions) | |||
Cash consideration | $ | 112.0 | |
Repayment of loans | 34.3 | ||
Contingent consideration: Earn-out | 30.0 | ||
Contingent bonus tax payment | 0.3 | ||
Total preliminary estimated purchase price | $ | 176.6 |
(in millions) | |||
Cash | $ | 1.5 | |
Accounts receivable | 30.4 | ||
Inventories | 39.2 | ||
Other current assets | 5.7 | ||
Property and equipment | 2.2 | ||
Goodwill | 61.2 | ||
Other intangible assets | 51.2 | ||
Other non-current assets | 0.9 | ||
Accounts payable | (12.4 | ) | |
Other current liabilities | (2.7 | ) | |
Other non-current liabilities | (0.6 | ) | |
Total preliminary estimated purchase price | $ | 176.6 |
(Unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in millions, except share and per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net sales | $ | 2,157.8 | $ | 2,181.9 | $ | 6,303.2 | $ | 6,378.3 | |||||||
Net income (loss) | (11.3 | ) | 5.4 | (21.5 | ) | 12.0 | |||||||||
Earnings (loss) per share: | |||||||||||||||
Basic earnings (loss) per share | $ | (0.72 | ) | $ | 0.34 | $ | (1.37 | ) | $ | 0.75 | |||||
Diluted earnings (loss) per share | $ | (0.72 | ) | $ | 0.33 | $ | (1.37 | ) | $ | 0.75 | |||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 15.70 | 16.00 | 15.70 | 16.00 | |||||||||||
Diluted | 15.70 | 16.27 | 15.70 | 16.05 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Integration management | $ | 3.8 | $ | 2.2 | $ | 10.5 | $ | 6.0 | |||||||
Retention compensation | — | 0.4 | 0.2 | 2.4 | |||||||||||
Information technology conversion costs | 2.8 | 1.9 | 6.8 | 4.3 | |||||||||||
Rebranding | 0.1 | 0.9 | 0.4 | 2.1 | |||||||||||
Legal, consulting and other professional fees | 0.4 | 0.8 | 1.3 | 1.8 | |||||||||||
Other | 0.6 | 1.1 | 2.4 | 3.0 | |||||||||||
AAC acquisition and integration | 6.5 | — | 6.5 | — | |||||||||||
Total acquisition and integration expenses | $ | 14.2 | $ | 7.3 | $ | 28.1 | $ | 19.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2016 | $ | 1.8 | $ | 8.0 | $ | 9.8 | |||||
Costs incurred | 1.4 | 3.1 | 4.5 | ||||||||
Payments | (1.2 | ) | (2.8 | ) | (4.0 | ) | |||||
Balance at March 31, 2017 | 2.0 | 8.3 | 10.3 | ||||||||
Costs incurred | 3.9 | 19.7 | 23.6 | ||||||||
Payments | (2.0 | ) | (5.4 | ) | (7.4 | ) | |||||
Balance at June 30, 2017 | 3.9 | 22.6 | 26.5 | ||||||||
Costs incurred | 0.7 | 3.8 | 4.5 | ||||||||
Payments | (0.7 | ) | (4.7 | ) | (5.4 | ) | |||||
Balance at September 30, 2017 | $ | 3.9 | $ | 21.7 | $ | 25.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | 2.1 | |||||
Costs incurred | 0.7 | 0.3 | 1.0 | ||||||||
Payments | (0.9 | ) | (0.4 | ) | (1.3 | ) | |||||
Balance at March 31, 2016 | 1.5 | 0.3 | 1.8 | ||||||||
Costs incurred | 0.9 | 1.5 | 2.4 | ||||||||
Payments | (0.6 | ) | (1.0 | ) | (1.6 | ) | |||||
Balance at June 30, 2016 | 1.8 | 0.8 | 2.6 | ||||||||
Costs incurred | 0.3 | 5.4 | 5.7 | ||||||||
Payments | (1.0 | ) | (0.7 | ) | (1.7 | ) | |||||
Balance at September 30, 2016 | $ | 1.1 | $ | 5.5 | $ | 6.6 |
|
(in millions) | Packaging | Corporate & Other | Total | ||||||||
Balance at December 31, 2016: | |||||||||||
Goodwill | $ | 44.1 | $ | 6.1 | $ | 50.2 | |||||
Accumulated impairment losses | — | — | — | ||||||||
Net goodwill 2016 | 44.1 | 6.1 | 50.2 | ||||||||
2017 Activity: | |||||||||||
Goodwill acquired | 61.2 | — | 61.2 | ||||||||
Impairment of goodwill | — | (6.1 | ) | (6.1 | ) | ||||||
Balance at September 30, 2017: | |||||||||||
Goodwill | 105.3 | 6.1 | 111.4 | ||||||||
Accumulated impairment losses | — | (6.1 | ) | (6.1 | ) | ||||||
Net goodwill at September 30, 2017 | $ | 105.3 | $ | — | $ | 105.3 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||
Customer relationships | $ | 64.9 | $ | 5.0 | $ | 59.9 | $ | 23.6 | $ | 4.0 | $ | 19.6 | |||||||||||
Trademarks/Trade names | 7.8 | 1.9 | 5.9 | 2.7 | 1.3 | 1.4 | |||||||||||||||||
Non-compete agreements | 2.6 | 0.1 | 2.5 | — | — | — | |||||||||||||||||
Total | $ | 75.3 | $ | 7.0 | $ | 68.3 | $ | 26.3 | $ | 5.3 | $ | 21.0 |
Gross Value (in millions) | Estimated Useful Life (in years) | ||||
Customer relationships | $ | 43.5 | 10 | ||
Trademarks/Trade names | 5.1 | 5 | |||
Non-compete agreements | 2.6 | 2 | |||
Total identifiable intangible assets acquired | $ | 51.2 |
|
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 969.3 | $ | 726.9 | |||
Equipment capital lease and other obligations | 4.5 | 25.2 | |||||
Total debt | 973.8 | 752.1 | |||||
Less: current maturities of long-term debt | (1.8 | ) | (2.9 | ) | |||
Long-term debt, net of current maturities | $ | 972.0 | $ | 749.2 |
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Obligations to related party | $ | 165.6 | $ | 191.0 | |||
Obligations - other financing | 27.4 | — | |||||
Total financing obligations | 193.0 | 191.0 | |||||
Less: current portion of financing obligations | (11.1 | ) | (14.9 | ) | |||
Financing obligations, less current portion | $ | 181.9 | $ | 176.1 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income (loss) before income taxes | $ | (18.3 | ) | $ | 13.6 | $ | (38.7 | ) | $ | 35.2 | |||||
Income tax expense (benefit) | (4.0 | ) | 8.0 | (13.1 | ) | 18.4 | |||||||||
Effective tax rate | 21.9 | % | 58.8 | % | 33.9 | % | 52.3 | % |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 8.6 | $ | 8.5 | $ | 24.9 | $ | 26.6 | ||||||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | 45.7 | 71.4 | 138.0 | 174.3 |
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 23.5 | $ | 24.8 | ||||
Related party payable to Georgia-Pacific | 11.2 | 9.0 | ||||||
Related party receivable from Georgia-Pacific | 3.8 | 3.9 |
|
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.5 | $ | 0.0 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.6 | 0.8 | 0.7 | 0.8 | |||||||||||
Expected return on plan assets | (1.2 | ) | (1.0 | ) | (1.2 | ) | (0.9 | ) | |||||||
Amortization of net loss | 0.1 | 0.0 | 0.0 | 0.0 | |||||||||||
Net periodic benefit cost (credit) | $ | 0.0 | $ | (0.2 | ) | $ | (0.1 | ) | $ | 0.0 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 1.5 | $ | 0.2 | $ | 1.3 | $ | 0.2 | |||||||
Interest cost | 2.0 | 2.1 | 2.5 | 2.4 | |||||||||||
Expected return on plan assets | (3.8 | ) | (2.8 | ) | (3.8 | ) | (2.7 | ) | |||||||
Amortization of net loss | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Net periodic benefit cost (credit) | $ | (0.2 | ) | $ | (0.4 | ) | $ | 0.1 | $ | 0.0 |
|
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||
ABL Facility | $ | 969.3 | $ | 969.3 | |||||||||
Tax Receivable Agreement | 61.0 | 61.0 | |||||||||||
Contingent Consideration: Earn-out | 30.0 | 30.0 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||
ABL Facility | $ | 726.9 | $ | 726.9 | |||||||||
Tax Receivable Agreement | 67.9 | 67.9 |
(in millions) | TRA Contingent Liability | |||
Balance at December 31, 2016 | $ | 67.9 | ||
Change in fair value adjustment recorded in other expense, net | 0.9 | |||
Principal payment | (8.5 | ) | ||
Balance at March 31, 2017 | 60.3 | |||
Change in fair value adjustment recorded in other expense, net | 1.1 | |||
Balance at June 30, 2017 | 61.4 | |||
Change in fair value adjustment recorded in other expense, net | (0.4 | ) | ||
Balance at September 30, 2017 | $ | 61.0 |
(in millions) | TRA Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense, net | 1.8 | |||
Balance at March 31, 2016 | 64.8 | |||
Change in fair value adjustment recorded in other expense, net | 2.0 | |||
Balance at June 30, 2016 | 66.8 | |||
Change in fair value adjustment recorded in other expense, net | 1.0 | |||
Balance at September 30, 2016 | $ | 67.8 |
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(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2016 | $ | (29.2 | ) | $ | (9.1 | ) | $ | (0.7 | ) | $ | (39.0 | ) | ||||
Unrealized net gains (losses) arising during the period | 2.8 | 0.1 | (0.1 | ) | 2.8 | |||||||||||
Net current period other comprehensive income (loss) | 2.8 | 0.1 | (0.1 | ) | 2.8 | |||||||||||
Balance at March 31, 2017 | (26.4 | ) | (9.0 | ) | (0.8 | ) | (36.2 | ) | ||||||||
Unrealized net gains (losses) arising during the period | 2.6 | — | — | 2.6 | ||||||||||||
Net current period other comprehensive income (loss) | 2.6 | — | — | 2.6 | ||||||||||||
Balance at June 30, 2017 | (23.8 | ) | (9.0 | ) | (0.8 | ) | (33.6 | ) | ||||||||
Unrealized net gains (losses) arising during the period | 2.4 | — | — | 2.4 | ||||||||||||
Amounts reclassified from AOCL | — | — | 0.1 | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 2.4 | — | 0.1 | 2.5 | ||||||||||||
Balance at September 30, 2017 | $ | (21.4 | ) | $ | (9.0 | ) | $ | (0.7 | ) | $ | (31.1 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2015 | $ | (27.1 | ) | $ | (7.4 | ) | $ | (0.5 | ) | $ | (35.0 | ) | ||||
Unrealized net gains (losses) arising during the period | 3.8 | — | (0.3 | ) | 3.5 | |||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 3.8 | 0.1 | (0.3 | ) | 3.6 | |||||||||||
Balance at March 31, 2016 | (23.3 | ) | (7.3 | ) | (0.8 | ) | (31.4 | ) | ||||||||
Unrealized net gains (losses) arising during the period | (1.6 | ) | — | 0.0 | (1.6 | ) | ||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | (1.6 | ) | 0.1 | — | (1.5 | ) | ||||||||||
Balance at June 30, 2016 | (24.9 | ) | (7.2 | ) | (0.8 | ) | (32.9 | ) | ||||||||
Unrealized net gains (losses) arising during the period | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Net current period other comprehensive income (loss) | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Balance at September 30, 2016 | $ | (26.5 | ) | $ | (7.2 | ) | $ | (0.8 | ) | $ | (34.5 | ) |
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|
(in millions) | Packaging | Facility Solutions | Print | Publishing | Total Reportable Segments | Corporate & Other | Total | ||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Net sales | $ | 799.6 | $ | 339.6 | $ | 701.6 | $ | 238.7 | $ | 2,079.5 | $ | 37.3 | $ | 2,116.8 | |||||||||||||
Adjusted EBITDA | 62.1 | 10.3 | 13.1 | 5.5 | 91.0 | (46.9 | ) | ||||||||||||||||||||
Depreciation and amortization | 4.0 | 1.6 | 2.7 | 0.2 | 8.5 | 4.6 | 13.1 | ||||||||||||||||||||
Restructuring charges | 5.8 | 1.9 | 5.9 | 0.0 | 13.6 | (10.9 | ) | 2.7 | |||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 730.1 | $ | 328.7 | $ | 788.2 | $ | 248.4 | $ | 2,095.4 | $ | 31.2 | $ | 2,126.6 | |||||||||||||
Adjusted EBITDA | 59.5 | 13.0 | 20.0 | 6.6 | 99.1 | (42.0 | ) | ||||||||||||||||||||
Depreciation and amortization | 3.1 | 1.5 | 3.1 | 0.8 | 8.5 | 4.9 | 13.4 | ||||||||||||||||||||
Restructuring charges | 2.2 | 1.0 | 2.6 | 0.0 | 5.8 | 0.0 | 5.8 | ||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Net sales | $ | 2,266.0 | $ | 975.5 | $ | 2,095.1 | $ | 696.6 | $ | 6,033.2 | $ | 107.1 | $ | 6,140.3 | |||||||||||||
Adjusted EBITDA | 166.7 | 25.1 | 44.8 | 17.6 | 254.2 | (137.8 | ) | ||||||||||||||||||||
Depreciation and amortization | 10.5 | 4.5 | 7.9 | 1.3 | 24.2 | 15.7 | 39.9 | ||||||||||||||||||||
Restructuring charges | 12.3 | 5.2 | 12.2 | 0.0 | 29.7 | 0.3 | 30.0 | ||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 2,106.4 | $ | 951.6 | $ | 2,299.0 | $ | 763.2 | $ | 6,120.2 | $ | 87.0 | $ | 6,207.2 | |||||||||||||
Adjusted EBITDA | 165.4 | 34.3 | 55.7 | 16.4 | 271.8 | (129.7 | ) | ||||||||||||||||||||
Depreciation and amortization | 9.3 | 4.5 | 9.5 | 2.5 | 25.8 | 14.7 | 40.5 | ||||||||||||||||||||
Restructuring charges | 2.6 | 1.5 | 2.9 | 0.0 | 7.0 | 0.2 | 7.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income (loss) before income taxes | $ | (18.3 | ) | $ | 13.6 | $ | (38.7 | ) | $ | 35.2 | |||||
Interest expense, net | 8.3 | 8.2 | 22.1 | 21.1 | |||||||||||
Depreciation and amortization | 13.1 | 13.4 | 39.9 | 40.5 | |||||||||||
Restructuring charges | 2.7 | 5.8 | 30.0 | 7.2 | |||||||||||
Stock-based compensation | 3.8 | 2.1 | 11.6 | 7.2 | |||||||||||
LIFO reserve increase (decrease) | 3.7 | 0.4 | 3.4 | (2.7 | ) | ||||||||||
Non-restructuring asset impairment charges | 7.7 | 3.1 | 8.4 | 4.0 | |||||||||||
Non-restructuring severance charges | 0.5 | 0.2 | 1.5 | 2.4 | |||||||||||
Non-restructuring pension charges | 3.2 | 2.3 | 2.1 | 2.3 | |||||||||||
Acquisition and integration expenses | 14.2 | 7.3 | 28.1 | 19.6 | |||||||||||
Fair value adjustments on TRA contingent liability | (0.4 | ) | 1.0 | 1.6 | 4.8 | ||||||||||
Other | 5.6 | (0.3 | ) | 6.4 | 0.5 | ||||||||||
Adjustment for Corporate & Other | 46.9 | 42.0 | 137.8 | 129.7 | |||||||||||
Adjusted EBITDA for reportable segments | $ | 91.0 | $ | 99.1 | $ | 254.2 | $ | 271.8 |
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Packaging | $ | 1,137.3 | $ | 875.9 | |||
Facility Solutions | 424.1 | 397.9 | |||||
Print | 883.6 | 874.1 | |||||
Publishing | 178.3 | 170.0 | |||||
Corporate & Other | 151.8 | 165.8 | |||||
Total assets | $ | 2,775.1 | $ | 2,483.7 |
|
Recently Issued Accounting Standards Not Yet Adopted | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) | The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. | January 1, 2018; early adoption date is no earlier than the annual period beginning after December 15, 2016 | The Company’s analysis of the impact of this standard is ongoing. Focus areas include the impacts of accounting for customer dedicated inventory and principal/agent considerations. During the third quarter, work continued on the disclosure requirements and internal control assessments. As the analysis is not yet complete, the Company cannot provide a financial impact assessment at this time, nor provide a determination as to the effect of the new standard on its internal control over financial reporting and other changes in business practices and processes. The Company anticipates applying the modified retrospective method of adoption. The Company will adopt this ASU on January 1, 2018. | |||
ASU 2016-02, Leases (Topic 842) | The standard requires lessees to put most leases on their balance sheet but recognize expenses in their statement of operations in a manner similar to current accounting guidance. The new standard also eliminates the current guidance related to real estate specific provisions. The guidance requires application on a modified retrospective basis to leases that existed at the beginning of the earliest period presented and those entered into thereafter but prior to the effective date. The standard permits entities to elect a package of practical expedients which must be applied consistently to all leases that commenced prior to the effective date. If the package of practical expedients is elected, entities do not need to reassess: (i) whether expired or existing contracts contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The guidance also allows entities to make certain policy elections under the new standard, including: (i) the use of hindsight to determine lease term and when assessing existing right of use assets for impairment; (ii) a policy to not record short-term leases on the balance sheet; and (iii) a policy to not separate lease and non-lease components. | January 1, 2019; early adoption is permitted | The Company is currently evaluating this standard and anticipates that its adoption will have a material impact on the Consolidated Financial Statements and related disclosures as it will result in recording virtually all operating leases on the balance sheet as a lease obligation and right of use asset. The Company’s preliminary assessment has focused on system readiness and the policy elections and practical expedients permitted by the standard. Lease software has been implemented that will better enable the Company to implement the standard. The Company currently anticipates electing to apply the package of practical expedients to all leases that commenced prior to the date of adoption. Based on the analysis performed to date, the Company anticipates making a policy election to not include short-term leases on the Consolidated Balance Sheets and to separate lease and non-lease components. A decision has not been made regarding the use of hindsight when determining lease term and assessing existing right of use assets for impairment. The assessment is ongoing and the preliminary conclusions are subject to change. At this time the Company is unable to quantify the impact that the adoption of this standard will have on the Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2019. | |||
Recently Issued Accounting Standards Not Yet Adopted (continued) | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) | The standard will replace the currently required incurred loss impairment methodology with guidance that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to be considered in making credit loss estimates. The guidance requires application on a modified retrospective basis. Other application requirements exist for specific assets impacted by a more-than-insignificant credit deterioration since origination. | January 1, 2020; early adoption is permitted for fiscal years beginning after December 15, 2018 | The Company is currently evaluating the impact this ASU will have on its Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2020. | |||
ASU 2016-15, Statement of Cash Flows (Topic 230) | The standard addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance requires application on a retrospective basis. | January 1, 2018; early adoption is permitted (early adoption requires the adoption of all amendments in the same period) | The Company is currently evaluating the impact this ASU will have on its Consolidated Financial Statements and related disclosures; the impact is not expected to be material. The Company will adopt this ASU on January 1, 2018. | |||
ASU 2017-01, Business Combinations (Topic 805) | The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance requires application on a prospective basis. | January 1, 2018; early adoption is permitted | The Company will adopt this ASU on January 1, 2018. | |||
ASU 2017-07, Compensation-Retirement Benefits (Topic 715) | The standard requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount of net benefit cost that is included in the income statement or capitalized in assets, by line item. The standard requires employers to report the service cost component in the same line item(s) as other compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs from prior periods and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The standard also allows only the service cost component to be eligible for capitalization when applicable. The guidance requires application on a retrospective basis for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and on a prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. | January 1, 2018; early adoption is permitted as of the first interim period of an annual period for which interim or annual financial statements have not been issued | The Company is currently making its assessment of the impact that this ASU will have on its Consolidated Financial Statements and related disclosures using results from 2016 and year-to-date 2017; the impact is not expected to be material. The Company will adopt this ASU on January 1, 2018. |
Recently Adopted Accounting Standards | ||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
ASU 2015-11, Inventory - Simplifying the Measurement of Inventory (Topic 330) | The standard requires companies to measure inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This ASU does not apply to inventories measured by either the last-in first-out ("LIFO") method or retail inventory method. The guidance requires application on a prospective basis. | January 1, 2017 | The Company adopted this ASU on January 1, 2017. The adoption did not materially impact its Consolidated Financial Statements or related disclosures. As of September 30, 2017, approximately 87% of the inventory balance was measured using LIFO. | |||
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) | The standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The guidance requires application on a prospective basis. | January 1, 2020; early adoption is permitted | The Company adopted this ASU on January 1, 2017. | |||
ASU 2017-09, Compensation - Stock Compensation (Topic 718) | The standard clarifies the changes to the terms and conditions of a share-based payment award that require an entity to apply modification accounting. The guidance requires application on a prospective basis. | January 1, 2018; early adoption is permitted | The Company adopted this ASU on April 1, 2017. The adoption did not materially impact its Consolidated Financial Statements or related disclosures. |
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(in millions) | |||
Cash consideration | $ | 112.0 | |
Repayment of loans | 34.3 | ||
Contingent consideration: Earn-out | 30.0 | ||
Contingent bonus tax payment | 0.3 | ||
Total preliminary estimated purchase price | $ | 176.6 |
(in millions) | |||
Cash | $ | 1.5 | |
Accounts receivable | 30.4 | ||
Inventories | 39.2 | ||
Other current assets | 5.7 | ||
Property and equipment | 2.2 | ||
Goodwill | 61.2 | ||
Other intangible assets | 51.2 | ||
Other non-current assets | 0.9 | ||
Accounts payable | (12.4 | ) | |
Other current liabilities | (2.7 | ) | |
Other non-current liabilities | (0.6 | ) | |
Total preliminary estimated purchase price | $ | 176.6 |
(Unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in millions, except share and per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net sales | $ | 2,157.8 | $ | 2,181.9 | $ | 6,303.2 | $ | 6,378.3 | |||||||
Net income (loss) | (11.3 | ) | 5.4 | (21.5 | ) | 12.0 | |||||||||
Earnings (loss) per share: | |||||||||||||||
Basic earnings (loss) per share | $ | (0.72 | ) | $ | 0.34 | $ | (1.37 | ) | $ | 0.75 | |||||
Diluted earnings (loss) per share | $ | (0.72 | ) | $ | 0.33 | $ | (1.37 | ) | $ | 0.75 | |||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 15.70 | 16.00 | 15.70 | 16.00 | |||||||||||
Diluted | 15.70 | 16.27 | 15.70 | 16.05 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Integration management | $ | 3.8 | $ | 2.2 | $ | 10.5 | $ | 6.0 | |||||||
Retention compensation | — | 0.4 | 0.2 | 2.4 | |||||||||||
Information technology conversion costs | 2.8 | 1.9 | 6.8 | 4.3 | |||||||||||
Rebranding | 0.1 | 0.9 | 0.4 | 2.1 | |||||||||||
Legal, consulting and other professional fees | 0.4 | 0.8 | 1.3 | 1.8 | |||||||||||
Other | 0.6 | 1.1 | 2.4 | 3.0 | |||||||||||
AAC acquisition and integration | 6.5 | — | 6.5 | — | |||||||||||
Total acquisition and integration expenses | $ | 14.2 | $ | 7.3 | $ | 28.1 | $ | 19.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | 2.1 | |||||
Costs incurred | 0.7 | 0.3 | 1.0 | ||||||||
Payments | (0.9 | ) | (0.4 | ) | (1.3 | ) | |||||
Balance at March 31, 2016 | 1.5 | 0.3 | 1.8 | ||||||||
Costs incurred | 0.9 | 1.5 | 2.4 | ||||||||
Payments | (0.6 | ) | (1.0 | ) | (1.6 | ) | |||||
Balance at June 30, 2016 | 1.8 | 0.8 | 2.6 | ||||||||
Costs incurred | 0.3 | 5.4 | 5.7 | ||||||||
Payments | (1.0 | ) | (0.7 | ) | (1.7 | ) | |||||
Balance at September 30, 2016 | $ | 1.1 | $ | 5.5 | $ | 6.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2016 | $ | 1.8 | $ | 8.0 | $ | 9.8 | |||||
Costs incurred | 1.4 | 3.1 | 4.5 | ||||||||
Payments | (1.2 | ) | (2.8 | ) | (4.0 | ) | |||||
Balance at March 31, 2017 | 2.0 | 8.3 | 10.3 | ||||||||
Costs incurred | 3.9 | 19.7 | 23.6 | ||||||||
Payments | (2.0 | ) | (5.4 | ) | (7.4 | ) | |||||
Balance at June 30, 2017 | 3.9 | 22.6 | 26.5 | ||||||||
Costs incurred | 0.7 | 3.8 | 4.5 | ||||||||
Payments | (0.7 | ) | (4.7 | ) | (5.4 | ) | |||||
Balance at September 30, 2017 | $ | 3.9 | $ | 21.7 | $ | 25.6 |
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(in millions) | Packaging | Corporate & Other | Total | ||||||||
Balance at December 31, 2016: | |||||||||||
Goodwill | $ | 44.1 | $ | 6.1 | $ | 50.2 | |||||
Accumulated impairment losses | — | — | — | ||||||||
Net goodwill 2016 | 44.1 | 6.1 | 50.2 | ||||||||
2017 Activity: | |||||||||||
Goodwill acquired | 61.2 | — | 61.2 | ||||||||
Impairment of goodwill | — | (6.1 | ) | (6.1 | ) | ||||||
Balance at September 30, 2017: | |||||||||||
Goodwill | 105.3 | 6.1 | 111.4 | ||||||||
Accumulated impairment losses | — | (6.1 | ) | (6.1 | ) | ||||||
Net goodwill at September 30, 2017 | $ | 105.3 | $ | — | $ | 105.3 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||
Customer relationships | $ | 64.9 | $ | 5.0 | $ | 59.9 | $ | 23.6 | $ | 4.0 | $ | 19.6 | |||||||||||
Trademarks/Trade names | 7.8 | 1.9 | 5.9 | 2.7 | 1.3 | 1.4 | |||||||||||||||||
Non-compete agreements | 2.6 | 0.1 | 2.5 | — | — | — | |||||||||||||||||
Total | $ | 75.3 | $ | 7.0 | $ | 68.3 | $ | 26.3 | $ | 5.3 | $ | 21.0 |
Gross Value (in millions) | Estimated Useful Life (in years) | ||||
Customer relationships | $ | 43.5 | 10 | ||
Trademarks/Trade names | 5.1 | 5 | |||
Non-compete agreements | 2.6 | 2 | |||
Total identifiable intangible assets acquired | $ | 51.2 |
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(in millions) | September 30, 2017 | December 31, 2016 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 969.3 | $ | 726.9 | |||
Equipment capital lease and other obligations | 4.5 | 25.2 | |||||
Total debt | 973.8 | 752.1 | |||||
Less: current maturities of long-term debt | (1.8 | ) | (2.9 | ) | |||
Long-term debt, net of current maturities | $ | 972.0 | $ | 749.2 |
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Obligations to related party | $ | 165.6 | $ | 191.0 | |||
Obligations - other financing | 27.4 | — | |||||
Total financing obligations | 193.0 | 191.0 | |||||
Less: current portion of financing obligations | (11.1 | ) | (14.9 | ) | |||
Financing obligations, less current portion | $ | 181.9 | $ | 176.1 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income (loss) before income taxes | $ | (18.3 | ) | $ | 13.6 | $ | (38.7 | ) | $ | 35.2 | |||||
Income tax expense (benefit) | (4.0 | ) | 8.0 | (13.1 | ) | 18.4 | |||||||||
Effective tax rate | 21.9 | % | 58.8 | % | 33.9 | % | 52.3 | % |
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 8.6 | $ | 8.5 | $ | 24.9 | $ | 26.6 | ||||||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | 45.7 | 71.4 | 138.0 | 174.3 |
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 23.5 | $ | 24.8 | ||||
Related party payable to Georgia-Pacific | 11.2 | 9.0 | ||||||
Related party receivable from Georgia-Pacific | 3.8 | 3.9 |
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Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.5 | $ | 0.0 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.6 | 0.8 | 0.7 | 0.8 | |||||||||||
Expected return on plan assets | (1.2 | ) | (1.0 | ) | (1.2 | ) | (0.9 | ) | |||||||
Amortization of net loss | 0.1 | 0.0 | 0.0 | 0.0 | |||||||||||
Net periodic benefit cost (credit) | $ | 0.0 | $ | (0.2 | ) | $ | (0.1 | ) | $ | 0.0 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 1.5 | $ | 0.2 | $ | 1.3 | $ | 0.2 | |||||||
Interest cost | 2.0 | 2.1 | 2.5 | 2.4 | |||||||||||
Expected return on plan assets | (3.8 | ) | (2.8 | ) | (3.8 | ) | (2.7 | ) | |||||||
Amortization of net loss | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Net periodic benefit cost (credit) | $ | (0.2 | ) | $ | (0.4 | ) | $ | 0.1 | $ | 0.0 |
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(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||
ABL Facility | $ | 969.3 | $ | 969.3 | |||||||||
Tax Receivable Agreement | 61.0 | 61.0 | |||||||||||
Contingent Consideration: Earn-out | 30.0 | 30.0 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||
ABL Facility | $ | 726.9 | $ | 726.9 | |||||||||
Tax Receivable Agreement | 67.9 | 67.9 |
(in millions) | TRA Contingent Liability | |||
Balance at December 31, 2016 | $ | 67.9 | ||
Change in fair value adjustment recorded in other expense, net | 0.9 | |||
Principal payment | (8.5 | ) | ||
Balance at March 31, 2017 | 60.3 | |||
Change in fair value adjustment recorded in other expense, net | 1.1 | |||
Balance at June 30, 2017 | 61.4 | |||
Change in fair value adjustment recorded in other expense, net | (0.4 | ) | ||
Balance at September 30, 2017 | $ | 61.0 |
(in millions) | TRA Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense, net | 1.8 | |||
Balance at March 31, 2016 | 64.8 | |||
Change in fair value adjustment recorded in other expense, net | 2.0 | |||
Balance at June 30, 2016 | 66.8 | |||
Change in fair value adjustment recorded in other expense, net | 1.0 | |||
Balance at September 30, 2016 | $ | 67.8 |
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(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2016 | $ | (29.2 | ) | $ | (9.1 | ) | $ | (0.7 | ) | $ | (39.0 | ) | ||||
Unrealized net gains (losses) arising during the period | 2.8 | 0.1 | (0.1 | ) | 2.8 | |||||||||||
Net current period other comprehensive income (loss) | 2.8 | 0.1 | (0.1 | ) | 2.8 | |||||||||||
Balance at March 31, 2017 | (26.4 | ) | (9.0 | ) | (0.8 | ) | (36.2 | ) | ||||||||
Unrealized net gains (losses) arising during the period | 2.6 | — | — | 2.6 | ||||||||||||
Net current period other comprehensive income (loss) | 2.6 | — | — | 2.6 | ||||||||||||
Balance at June 30, 2017 | (23.8 | ) | (9.0 | ) | (0.8 | ) | (33.6 | ) | ||||||||
Unrealized net gains (losses) arising during the period | 2.4 | — | — | 2.4 | ||||||||||||
Amounts reclassified from AOCL | — | — | 0.1 | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 2.4 | — | 0.1 | 2.5 | ||||||||||||
Balance at September 30, 2017 | $ | (21.4 | ) | $ | (9.0 | ) | $ | (0.7 | ) | $ | (31.1 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2015 | $ | (27.1 | ) | $ | (7.4 | ) | $ | (0.5 | ) | $ | (35.0 | ) | ||||
Unrealized net gains (losses) arising during the period | 3.8 | — | (0.3 | ) | 3.5 | |||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 3.8 | 0.1 | (0.3 | ) | 3.6 | |||||||||||
Balance at March 31, 2016 | (23.3 | ) | (7.3 | ) | (0.8 | ) | (31.4 | ) | ||||||||
Unrealized net gains (losses) arising during the period | (1.6 | ) | — | 0.0 | (1.6 | ) | ||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | (1.6 | ) | 0.1 | — | (1.5 | ) | ||||||||||
Balance at June 30, 2016 | (24.9 | ) | (7.2 | ) | (0.8 | ) | (32.9 | ) | ||||||||
Unrealized net gains (losses) arising during the period | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Net current period other comprehensive income (loss) | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Balance at September 30, 2016 | $ | (26.5 | ) | $ | (7.2 | ) | $ | (0.8 | ) | $ | (34.5 | ) |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income (loss) before income taxes | $ | (18.3 | ) | $ | 13.6 | $ | (38.7 | ) | $ | 35.2 | |||||
Interest expense, net | 8.3 | 8.2 | 22.1 | 21.1 | |||||||||||
Depreciation and amortization | 13.1 | 13.4 | 39.9 | 40.5 | |||||||||||
Restructuring charges | 2.7 | 5.8 | 30.0 | 7.2 | |||||||||||
Stock-based compensation | 3.8 | 2.1 | 11.6 | 7.2 | |||||||||||
LIFO reserve increase (decrease) | 3.7 | 0.4 | 3.4 | (2.7 | ) | ||||||||||
Non-restructuring asset impairment charges | 7.7 | 3.1 | 8.4 | 4.0 | |||||||||||
Non-restructuring severance charges | 0.5 | 0.2 | 1.5 | 2.4 | |||||||||||
Non-restructuring pension charges | 3.2 | 2.3 | 2.1 | 2.3 | |||||||||||
Acquisition and integration expenses | 14.2 | 7.3 | 28.1 | 19.6 | |||||||||||
Fair value adjustments on TRA contingent liability | (0.4 | ) | 1.0 | 1.6 | 4.8 | ||||||||||
Other | 5.6 | (0.3 | ) | 6.4 | 0.5 | ||||||||||
Adjustment for Corporate & Other | 46.9 | 42.0 | 137.8 | 129.7 | |||||||||||
Adjusted EBITDA for reportable segments | $ | 91.0 | $ | 99.1 | $ | 254.2 | $ | 271.8 |
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Packaging | $ | 1,137.3 | $ | 875.9 | |||
Facility Solutions | 424.1 | 397.9 | |||||
Print | 883.6 | 874.1 | |||||
Publishing | 178.3 | 170.0 | |||||
Corporate & Other | 151.8 | 165.8 | |||||
Total assets | $ | 2,775.1 | $ | 2,483.7 |
(in millions) | Packaging | Facility Solutions | Print | Publishing | Total Reportable Segments | Corporate & Other | Total | ||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Net sales | $ | 799.6 | $ | 339.6 | $ | 701.6 | $ | 238.7 | $ | 2,079.5 | $ | 37.3 | $ | 2,116.8 | |||||||||||||
Adjusted EBITDA | 62.1 | 10.3 | 13.1 | 5.5 | 91.0 | (46.9 | ) | ||||||||||||||||||||
Depreciation and amortization | 4.0 | 1.6 | 2.7 | 0.2 | 8.5 | 4.6 | 13.1 | ||||||||||||||||||||
Restructuring charges | 5.8 | 1.9 | 5.9 | 0.0 | 13.6 | (10.9 | ) | 2.7 | |||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 730.1 | $ | 328.7 | $ | 788.2 | $ | 248.4 | $ | 2,095.4 | $ | 31.2 | $ | 2,126.6 | |||||||||||||
Adjusted EBITDA | 59.5 | 13.0 | 20.0 | 6.6 | 99.1 | (42.0 | ) | ||||||||||||||||||||
Depreciation and amortization | 3.1 | 1.5 | 3.1 | 0.8 | 8.5 | 4.9 | 13.4 | ||||||||||||||||||||
Restructuring charges | 2.2 | 1.0 | 2.6 | 0.0 | 5.8 | 0.0 | 5.8 | ||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Net sales | $ | 2,266.0 | $ | 975.5 | $ | 2,095.1 | $ | 696.6 | $ | 6,033.2 | $ | 107.1 | $ | 6,140.3 | |||||||||||||
Adjusted EBITDA | 166.7 | 25.1 | 44.8 | 17.6 | 254.2 | (137.8 | ) | ||||||||||||||||||||
Depreciation and amortization | 10.5 | 4.5 | 7.9 | 1.3 | 24.2 | 15.7 | 39.9 | ||||||||||||||||||||
Restructuring charges | 12.3 | 5.2 | 12.2 | 0.0 | 29.7 | 0.3 | 30.0 | ||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 2,106.4 | $ | 951.6 | $ | 2,299.0 | $ | 763.2 | $ | 6,120.2 | $ | 87.0 | $ | 6,207.2 | |||||||||||||
Adjusted EBITDA | 165.4 | 34.3 | 55.7 | 16.4 | 271.8 | (129.7 | ) | ||||||||||||||||||||
Depreciation and amortization | 9.3 | 4.5 | 9.5 | 2.5 | 25.8 | 14.7 | 40.5 | ||||||||||||||||||||
Restructuring charges | 2.6 | 1.5 | 2.9 | 0.0 | 7.0 | 0.2 | 7.2 |
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