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Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers | 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 is currently evaluating the alternative methods of adoption (full retrospective or modified retrospective), and the effect on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. | |||
ASU 2015-11, Simplifying the Measurement of Inventory | 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 will not apply to inventories measured by either the last-in first-out (LIFO) method or retail inventory method. | January 1, 2017 | The Company plans to adopt this ASU on January 1, 2017. Given that the majority (approximately 87% of the September 30, 2016 inventory balance) of the Company's inventory is measured using LIFO, it is not expected that the adoption of these provisions will have a material effect on its Consolidated Financial Statements. | |||
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. | January 1, 2019; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2019. | |||
ASU 2016-09, Compensation-Stock Compensation (Topic 718) | The standard was issued as part of the Financial Accounting Standards Board's simplification initiative. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including income tax consequences, award classification as either equity or liabilities, and classification on the statement of cash flows. | January 1, 2017; early adoption is permitted | The Company adopted this ASU on January 1, 2016. The adoption did not materially impact the financial statements or related disclosures. | |||
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. | January 1, 2020; early adoption for fiscal years beginning after December 15, 2018 | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company 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. | January 1, 2018; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Integration management | $ | 2.2 | $ | — | $ | 6.0 | $ | — | |||||||
Retention compensation | 0.4 | 2.3 | 2.4 | 8.9 | |||||||||||
Information technology conversion costs | 1.9 | 2.1 | 4.3 | 6.4 | |||||||||||
Rebranding | 0.9 | 1.7 | 2.1 | 4.2 | |||||||||||
Legal, consulting and other professional fees | 0.8 | 1.4 | 1.8 | 6.8 | |||||||||||
Other | 1.1 | 0.8 | 3.0 | 2.3 | |||||||||||
Total integration expenses | $ | 7.3 | $ | 8.3 | $ | 19.6 | $ | 28.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | |||||||
Costs incurred | 0.7 | 0.3 | 0.7 | 1.7 | |||||||||||
Payments | (0.9 | ) | (0.4 | ) | — | (1.3 | ) | ||||||||
Other adjustments | — | — | (0.7 | ) | (0.7 | ) | |||||||||
Balance at March 31, 2016 | 1.5 | 0.3 | — | 1.8 | |||||||||||
Costs incurred | 0.9 | 1.5 | (2.7 | ) | (0.3 | ) | |||||||||
Payments | (0.6 | ) | (1.0 | ) | — | (1.6 | ) | ||||||||
Other adjustments | — | — | 2.7 | 2.7 | |||||||||||
Balance at June 30, 2016 | 1.8 | 0.8 | — | 2.6 | |||||||||||
Costs incurred | 0.3 | 5.4 | 0.1 | 5.8 | |||||||||||
Payments | (1.0 | ) | (0.7 | ) | — | (1.7 | ) | ||||||||
Other adjustments | — | — | (0.1 | ) | (0.1 | ) | |||||||||
Balance at September 30, 2016 | $ | 1.1 | $ | 5.5 | $ | — | $ | 6.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2014 | $ | 3.7 | $ | 0.2 | $ | — | $ | 3.9 | |||||||
Costs incurred | 1.9 | 1.5 | — | 3.4 | |||||||||||
Payments | (2.7 | ) | (0.4 | ) | — | (3.1 | ) | ||||||||
Balance at March 31, 2015 | 2.9 | 1.3 | — | 4.2 | |||||||||||
Costs incurred | 1.0 | 1.2 | — | 2.2 | |||||||||||
Payments | (1.1 | ) | (0.7 | ) | — | (1.8 | ) | ||||||||
Balance at June 30, 2015 | 2.8 | 1.8 | — | 4.6 | |||||||||||
Costs incurred | 0.8 | 0.2 | 2.0 | 3.0 | |||||||||||
Payments | (1.3 | ) | (1.1 | ) | — | (2.4 | ) | ||||||||
Other adjustments | — | — | (2.0 | ) | (2.0 | ) | |||||||||
Balance at September 30, 2015 | $ | 2.3 | $ | 0.9 | $ | — | $ | 3.2 |
|
(in millions) | September 30, 2016 | December 31, 2015 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 753.4 | $ | 795.5 | |||
Equipment capital lease obligations (1) | 17.8 | 7.8 | |||||
Total debt | 771.2 | 803.3 | |||||
Less: current portion of long-term debt | (3.0 | ) | (2.8 | ) | |||
Long-term debt, net of current maturities | $ | 768.2 | $ | 800.5 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Income before income taxes | $ | 13.6 | $ | 23.4 | $ | 35.2 | $ | 32.1 | |||||||
Income tax expense | $ | 8.0 | $ | 8.9 | $ | 18.4 | $ | 15.5 | |||||||
Effective tax rate | 58.8 | % | 38.0 | % | 52.3 | % | 48.3 | % |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 8.5 | $ | 8.0 | $ | 26.6 | $ | 25.0 | ||||||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | $ | 71.4 | $ | 67.0 | $ | 174.3 | $ | 205.0 |
(in millions) | September 30, 2016 | December 31, 2015 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 24.6 | $ | 25.2 | ||||
Related party payable to Georgia-Pacific | $ | 6.4 | $ | 10.7 | ||||
Related party receivable from Georgia-Pacific | $ | 3.5 | $ | 3.9 |
|
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.4 | $ | 0.1 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.7 | 0.8 | 0.8 | 0.7 | |||||||||||
Expected return on plan assets | (1.2 | ) | (0.9 | ) | (1.4 | ) | (0.8 | ) | |||||||
Net periodic benefit cost (credit) | $ | (0.1 | ) | $ | 0.0 | $ | (0.2 | ) | $ | 0.0 |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 1.3 | $ | 0.2 | $ | 1.3 | $ | 0.2 | |||||||
Interest cost | 2.5 | 2.4 | 2.5 | 2.4 | |||||||||||
Expected return on plan assets | (3.8 | ) | (2.7 | ) | (4.1 | ) | (2.6 | ) | |||||||
Amortization of net loss | 0.1 | 0.1 | — | — | |||||||||||
Net periodic benefit cost (credit) | $ | 0.1 | $ | 0.0 | $ | (0.3 | ) | $ | 0.0 |
|
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
ABL Facility | $ | 753.4 | $ | 753.4 | ||||||||||
Tax Receivable Agreement | $ | 67.8 | $ | 67.8 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
ABL Facility | $ | 795.5 | $ | 795.5 | ||||||||||
Tax Receivable Agreement | $ | 63.0 | $ | 63.0 |
(in millions) | Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense (income), net | 1.8 | |||
Balance at March 31, 2016 | 64.8 | |||
Change in fair value adjustment recorded in other expense (income), net | 2.0 | |||
Balance at June 30, 2016 | 66.8 | |||
Change in fair value adjustment recorded in other expense (income), net | 1.0 | |||
Balance at September 30, 2016 | $ | 67.8 |
(in millions) | Contingent Liability | |||
Balance at December 31, 2014 | $ | 60.5 | ||
Purchase accounting adjustment | 0.6 | |||
Change in fair value adjustment recorded in other expense (income), net | 1.3 | |||
Balance at March 31, 2015 | 62.4 | |||
Change in fair value adjustment recorded in other expense (income), net | (1.7 | ) | ||
Balance at June 30, 2015 | 60.7 | |||
Change in fair value adjustment recorded in other expense (income), net | 0.3 | |||
Balance at September 30, 2015 | $ | 61.0 |
|
(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 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 losses arising during the period | (1.6 | ) | — | 0.0 | (1.6 | ) | ||||||||||
Net current period other comprehensive loss | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Balance at September 30, 2016 | $ | (26.5 | ) | $ | (7.2 | ) | $ | (0.8 | ) | $ | (34.5 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2014 | $ | (14.7 | ) | $ | (7.4 | ) | $ | — | $ | (22.1 | ) | |||||
Unrealized net losses arising during the period | (6.6 | ) | — | — | (6.6 | ) | ||||||||||
Net current period other comprehensive loss | (6.6 | ) | — | — | (6.6 | ) | ||||||||||
Balance at March 31, 2015 | (21.3 | ) | (7.4 | ) | — | (28.7 | ) | |||||||||
Unrealized net gains arising during the period | 0.1 | — | — | 0.1 | ||||||||||||
Net current period other comprehensive income | 0.1 | — | — | 0.1 | ||||||||||||
Balance at June 30, 2015 | (21.2 | ) | (7.4 | ) | — | (28.6 | ) | |||||||||
Unrealized net losses arising during the period | (3.7 | ) | — | (0.4 | ) | (4.1 | ) | |||||||||
Net current period other comprehensive loss | (3.7 | ) | — | (0.4 | ) | (4.1 | ) | |||||||||
Balance at September 30, 2015 | $ | (24.9 | ) | $ | (7.4 | ) | $ | (0.4 | ) | $ | (32.7 | ) |
|
|
(in millions) | Print | Publishing | Packaging | Facility Solutions | Corporate & Other | Total | |||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Net sales | $ | 788.2 | $ | 248.4 | $ | 730.1 | $ | 328.7 | $ | 31.2 | $ | 2,126.6 | |||||||||||
Adjusted EBITDA | 20.0 | 6.6 | 59.5 | 13.0 | (42.0 | ) | 57.1 | ||||||||||||||||
Depreciation and amortization | 3.1 | 0.8 | 3.1 | 1.5 | 4.9 | 13.4 | |||||||||||||||||
Restructuring charges | 2.6 | — | 2.2 | 1.0 | — | 5.8 | |||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Net sales | 832.4 | 303.0 | 722.3 | 331.4 | 30.7 | 2,219.8 | |||||||||||||||||
Adjusted EBITDA | 23.2 | 9.3 | 59.0 | 12.7 | (43.6 | ) | 60.6 | ||||||||||||||||
Depreciation and amortization | 3.4 | 0.8 | 3.3 | 1.6 | 4.6 | 13.7 | |||||||||||||||||
Restructuring charges | 0.3 | — | 2.6 | 0.1 | — | 3.0 | |||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Net sales | 2,299.0 | 763.2 | 2,106.4 | 951.6 | 87.0 | 6,207.2 | |||||||||||||||||
Adjusted EBITDA | 55.7 | 16.4 | 165.4 | 34.3 | (129.7 | ) | 142.1 | ||||||||||||||||
Depreciation and amortization | 9.5 | 2.5 | 9.3 | 4.5 | 14.7 | 40.5 | |||||||||||||||||
Restructuring charges | 2.9 | — | 2.6 | 1.5 | 0.2 | 7.2 | |||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Net sales | 2,465.6 | 906.9 | 2,097.1 | 965.0 | 82.4 | 6,517.0 | |||||||||||||||||
Adjusted EBITDA | 57.1 | 23.1 | 156.5 | 30.2 | (137.2 | ) | 129.7 | ||||||||||||||||
Depreciation and amortization | 10.2 | 2.3 | 11.1 | 5.5 | 13.4 | 42.5 | |||||||||||||||||
Restructuring charges | 1.9 | — | 4.0 | 1.4 | 1.3 | 8.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Income before income taxes | $ | 13.6 | $ | 23.4 | $ | 35.2 | $ | 32.1 | |||||||
Interest expense, net | 8.2 | 7.0 | 21.1 | 19.8 | |||||||||||
Depreciation and amortization | 13.4 | 13.7 | 40.5 | 42.5 | |||||||||||
Restructuring charges | 5.8 | 3.0 | 7.2 | 8.6 | |||||||||||
Stock-based compensation | 2.1 | 1.0 | 7.2 | 3.0 | |||||||||||
LIFO (income) expense | 0.4 | 2.2 | (2.7 | ) | (7.8 | ) | |||||||||
Non-restructuring asset impairment charges | 3.1 | — | 4.0 | — | |||||||||||
Non-restructuring severance charges | 0.2 | 0.5 | 2.4 | 1.9 | |||||||||||
Non-restructuring pension charges | 2.3 | — | 2.3 | — | |||||||||||
Integration expenses | 7.3 | 8.3 | 19.6 | 28.6 | |||||||||||
Fair value adjustments on TRA contingent liability | 1.0 | 0.3 | 4.8 | (0.1 | ) | ||||||||||
Other | (0.3 | ) | 1.2 | 0.5 | 1.1 | ||||||||||
Adjusted EBITDA | $ | 57.1 | $ | 60.6 | $ | 142.1 | $ | 129.7 |
|
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers | 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 is currently evaluating the alternative methods of adoption (full retrospective or modified retrospective), and the effect on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. | |||
ASU 2015-11, Simplifying the Measurement of Inventory | 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 will not apply to inventories measured by either the last-in first-out (LIFO) method or retail inventory method. | January 1, 2017 | The Company plans to adopt this ASU on January 1, 2017. Given that the majority (approximately 87% of the September 30, 2016 inventory balance) of the Company's inventory is measured using LIFO, it is not expected that the adoption of these provisions will have a material effect on its Consolidated Financial Statements. | |||
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. | January 1, 2019; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2019. | |||
ASU 2016-09, Compensation-Stock Compensation (Topic 718) | The standard was issued as part of the Financial Accounting Standards Board's simplification initiative. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including income tax consequences, award classification as either equity or liabilities, and classification on the statement of cash flows. | January 1, 2017; early adoption is permitted | The Company adopted this ASU on January 1, 2016. The adoption did not materially impact the financial statements or related disclosures. | |||
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. | January 1, 2020; early adoption for fiscal years beginning after December 15, 2018 | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company 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. | January 1, 2018; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Integration management | $ | 2.2 | $ | — | $ | 6.0 | $ | — | |||||||
Retention compensation | 0.4 | 2.3 | 2.4 | 8.9 | |||||||||||
Information technology conversion costs | 1.9 | 2.1 | 4.3 | 6.4 | |||||||||||
Rebranding | 0.9 | 1.7 | 2.1 | 4.2 | |||||||||||
Legal, consulting and other professional fees | 0.8 | 1.4 | 1.8 | 6.8 | |||||||||||
Other | 1.1 | 0.8 | 3.0 | 2.3 | |||||||||||
Total integration expenses | $ | 7.3 | $ | 8.3 | $ | 19.6 | $ | 28.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | |||||||
Costs incurred | 0.7 | 0.3 | 0.7 | 1.7 | |||||||||||
Payments | (0.9 | ) | (0.4 | ) | — | (1.3 | ) | ||||||||
Other adjustments | — | — | (0.7 | ) | (0.7 | ) | |||||||||
Balance at March 31, 2016 | 1.5 | 0.3 | — | 1.8 | |||||||||||
Costs incurred | 0.9 | 1.5 | (2.7 | ) | (0.3 | ) | |||||||||
Payments | (0.6 | ) | (1.0 | ) | — | (1.6 | ) | ||||||||
Other adjustments | — | — | 2.7 | 2.7 | |||||||||||
Balance at June 30, 2016 | 1.8 | 0.8 | — | 2.6 | |||||||||||
Costs incurred | 0.3 | 5.4 | 0.1 | 5.8 | |||||||||||
Payments | (1.0 | ) | (0.7 | ) | — | (1.7 | ) | ||||||||
Other adjustments | — | — | (0.1 | ) | (0.1 | ) | |||||||||
Balance at September 30, 2016 | $ | 1.1 | $ | 5.5 | $ | — | $ | 6.6 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2014 | $ | 3.7 | $ | 0.2 | $ | — | $ | 3.9 | |||||||
Costs incurred | 1.9 | 1.5 | — | 3.4 | |||||||||||
Payments | (2.7 | ) | (0.4 | ) | — | (3.1 | ) | ||||||||
Balance at March 31, 2015 | 2.9 | 1.3 | — | 4.2 | |||||||||||
Costs incurred | 1.0 | 1.2 | — | 2.2 | |||||||||||
Payments | (1.1 | ) | (0.7 | ) | — | (1.8 | ) | ||||||||
Balance at June 30, 2015 | 2.8 | 1.8 | — | 4.6 | |||||||||||
Costs incurred | 0.8 | 0.2 | 2.0 | 3.0 | |||||||||||
Payments | (1.3 | ) | (1.1 | ) | — | (2.4 | ) | ||||||||
Other adjustments | — | — | (2.0 | ) | (2.0 | ) | |||||||||
Balance at September 30, 2015 | $ | 2.3 | $ | 0.9 | $ | — | $ | 3.2 |
|
(in millions) | September 30, 2016 | December 31, 2015 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 753.4 | $ | 795.5 | |||
Equipment capital lease obligations (1) | 17.8 | 7.8 | |||||
Total debt | 771.2 | 803.3 | |||||
Less: current portion of long-term debt | (3.0 | ) | (2.8 | ) | |||
Long-term debt, net of current maturities | $ | 768.2 | $ | 800.5 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Income before income taxes | $ | 13.6 | $ | 23.4 | $ | 35.2 | $ | 32.1 | |||||||
Income tax expense | $ | 8.0 | $ | 8.9 | $ | 18.4 | $ | 15.5 | |||||||
Effective tax rate | 58.8 | % | 38.0 | % | 52.3 | % | 48.3 | % |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 8.5 | $ | 8.0 | $ | 26.6 | $ | 25.0 | ||||||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | $ | 71.4 | $ | 67.0 | $ | 174.3 | $ | 205.0 |
(in millions) | September 30, 2016 | December 31, 2015 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 24.6 | $ | 25.2 | ||||
Related party payable to Georgia-Pacific | $ | 6.4 | $ | 10.7 | ||||
Related party receivable from Georgia-Pacific | $ | 3.5 | $ | 3.9 |
|
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.4 | $ | 0.1 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.7 | 0.8 | 0.8 | 0.7 | |||||||||||
Expected return on plan assets | (1.2 | ) | (0.9 | ) | (1.4 | ) | (0.8 | ) | |||||||
Net periodic benefit cost (credit) | $ | (0.1 | ) | $ | 0.0 | $ | (0.2 | ) | $ | 0.0 |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 1.3 | $ | 0.2 | $ | 1.3 | $ | 0.2 | |||||||
Interest cost | 2.5 | 2.4 | 2.5 | 2.4 | |||||||||||
Expected return on plan assets | (3.8 | ) | (2.7 | ) | (4.1 | ) | (2.6 | ) | |||||||
Amortization of net loss | 0.1 | 0.1 | — | — | |||||||||||
Net periodic benefit cost (credit) | $ | 0.1 | $ | 0.0 | $ | (0.3 | ) | $ | 0.0 |
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(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
ABL Facility | $ | 753.4 | $ | 753.4 | ||||||||||
Tax Receivable Agreement | $ | 67.8 | $ | 67.8 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
ABL Facility | $ | 795.5 | $ | 795.5 | ||||||||||
Tax Receivable Agreement | $ | 63.0 | $ | 63.0 |
(in millions) | Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense (income), net | 1.8 | |||
Balance at March 31, 2016 | 64.8 | |||
Change in fair value adjustment recorded in other expense (income), net | 2.0 | |||
Balance at June 30, 2016 | 66.8 | |||
Change in fair value adjustment recorded in other expense (income), net | 1.0 | |||
Balance at September 30, 2016 | $ | 67.8 |
(in millions) | Contingent Liability | |||
Balance at December 31, 2014 | $ | 60.5 | ||
Purchase accounting adjustment | 0.6 | |||
Change in fair value adjustment recorded in other expense (income), net | 1.3 | |||
Balance at March 31, 2015 | 62.4 | |||
Change in fair value adjustment recorded in other expense (income), net | (1.7 | ) | ||
Balance at June 30, 2015 | 60.7 | |||
Change in fair value adjustment recorded in other expense (income), net | 0.3 | |||
Balance at September 30, 2015 | $ | 61.0 |
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(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 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 losses arising during the period | (1.6 | ) | — | 0.0 | (1.6 | ) | ||||||||||
Net current period other comprehensive loss | (1.6 | ) | — | — | (1.6 | ) | ||||||||||
Balance at September 30, 2016 | $ | (26.5 | ) | $ | (7.2 | ) | $ | (0.8 | ) | $ | (34.5 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2014 | $ | (14.7 | ) | $ | (7.4 | ) | $ | — | $ | (22.1 | ) | |||||
Unrealized net losses arising during the period | (6.6 | ) | — | — | (6.6 | ) | ||||||||||
Net current period other comprehensive loss | (6.6 | ) | — | — | (6.6 | ) | ||||||||||
Balance at March 31, 2015 | (21.3 | ) | (7.4 | ) | — | (28.7 | ) | |||||||||
Unrealized net gains arising during the period | 0.1 | — | — | 0.1 | ||||||||||||
Net current period other comprehensive income | 0.1 | — | — | 0.1 | ||||||||||||
Balance at June 30, 2015 | (21.2 | ) | (7.4 | ) | — | (28.6 | ) | |||||||||
Unrealized net losses arising during the period | (3.7 | ) | — | (0.4 | ) | (4.1 | ) | |||||||||
Net current period other comprehensive loss | (3.7 | ) | — | (0.4 | ) | (4.1 | ) | |||||||||
Balance at September 30, 2015 | $ | (24.9 | ) | $ | (7.4 | ) | $ | (0.4 | ) | $ | (32.7 | ) |
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(in millions) | Print | Publishing | Packaging | Facility Solutions | Corporate & Other | Total | |||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Net sales | $ | 788.2 | $ | 248.4 | $ | 730.1 | $ | 328.7 | $ | 31.2 | $ | 2,126.6 | |||||||||||
Adjusted EBITDA | 20.0 | 6.6 | 59.5 | 13.0 | (42.0 | ) | 57.1 | ||||||||||||||||
Depreciation and amortization | 3.1 | 0.8 | 3.1 | 1.5 | 4.9 | 13.4 | |||||||||||||||||
Restructuring charges | 2.6 | — | 2.2 | 1.0 | — | 5.8 | |||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Net sales | 832.4 | 303.0 | 722.3 | 331.4 | 30.7 | 2,219.8 | |||||||||||||||||
Adjusted EBITDA | 23.2 | 9.3 | 59.0 | 12.7 | (43.6 | ) | 60.6 | ||||||||||||||||
Depreciation and amortization | 3.4 | 0.8 | 3.3 | 1.6 | 4.6 | 13.7 | |||||||||||||||||
Restructuring charges | 0.3 | — | 2.6 | 0.1 | — | 3.0 | |||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Net sales | 2,299.0 | 763.2 | 2,106.4 | 951.6 | 87.0 | 6,207.2 | |||||||||||||||||
Adjusted EBITDA | 55.7 | 16.4 | 165.4 | 34.3 | (129.7 | ) | 142.1 | ||||||||||||||||
Depreciation and amortization | 9.5 | 2.5 | 9.3 | 4.5 | 14.7 | 40.5 | |||||||||||||||||
Restructuring charges | 2.9 | — | 2.6 | 1.5 | 0.2 | 7.2 | |||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Net sales | 2,465.6 | 906.9 | 2,097.1 | 965.0 | 82.4 | 6,517.0 | |||||||||||||||||
Adjusted EBITDA | 57.1 | 23.1 | 156.5 | 30.2 | (137.2 | ) | 129.7 | ||||||||||||||||
Depreciation and amortization | 10.2 | 2.3 | 11.1 | 5.5 | 13.4 | 42.5 | |||||||||||||||||
Restructuring charges | 1.9 | — | 4.0 | 1.4 | 1.3 | 8.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Income before income taxes | $ | 13.6 | $ | 23.4 | $ | 35.2 | $ | 32.1 | |||||||
Interest expense, net | 8.2 | 7.0 | 21.1 | 19.8 | |||||||||||
Depreciation and amortization | 13.4 | 13.7 | 40.5 | 42.5 | |||||||||||
Restructuring charges | 5.8 | 3.0 | 7.2 | 8.6 | |||||||||||
Stock-based compensation | 2.1 | 1.0 | 7.2 | 3.0 | |||||||||||
LIFO (income) expense | 0.4 | 2.2 | (2.7 | ) | (7.8 | ) | |||||||||
Non-restructuring asset impairment charges | 3.1 | — | 4.0 | — | |||||||||||
Non-restructuring severance charges | 0.2 | 0.5 | 2.4 | 1.9 | |||||||||||
Non-restructuring pension charges | 2.3 | — | 2.3 | — | |||||||||||
Integration expenses | 7.3 | 8.3 | 19.6 | 28.6 | |||||||||||
Fair value adjustments on TRA contingent liability | 1.0 | 0.3 | 4.8 | (0.1 | ) | ||||||||||
Other | (0.3 | ) | 1.2 | 0.5 | 1.1 | ||||||||||
Adjusted EBITDA | $ | 57.1 | $ | 60.6 | $ | 142.1 | $ | 129.7 |
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