VERITIV CORP, 10-Q filed on 11/5/2019
Quarterly Report
v3.19.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2019
Oct. 31, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2019  
Document Transition Report false  
Entity File Number 001-36479  
Entity Registrant Name VERITIV CORPORATION  
Entity Central Index Key 0001599489  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-3234977  
Entity Address, Address Line One 1000 Abernathy Road NE  
Entity Address, Address Line Two Building 400, Suite 1700  
Entity Address, City or Town                            Atlanta,  
Entity Address, State or Province GA  
Entity Address, Postal Zip Code 30328  
City Area Code 770  
Local Phone Number 391-8200  
Title of 12(b) Security Common stock, $0.01 par value  
Trading Symbol VRTV  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   16,099,720
v3.19.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Net sales (including sales to related party of $5.7, $6.6, $17.3 and $21.3, respectively) $ 1,924.5 $ 2,192.5 $ 5,824.2 $ 6,465.4
Cost of products sold (including purchases from related party of $20.0, $39.3, $66.2 and $117.2, respectively) (exclusive of depreciation and amortization shown separately below) 1,550.8 1,805.8 4,726.5 5,323.8
Distribution expenses 124.9 135.0 387.3 400.1
Selling and administrative expenses 204.3 209.8 631.6 656.1
Depreciation and amortization 13.3 13.1 39.5 41.5
Integration and acquisition expenses 4.5 7.9 13.3 24.6
Restructuring charges, net 7.6 5.4 16.9 28.7
Operating income (loss) 19.1 15.5 9.1 (9.4)
Interest expense, net 8.9 11.0 30.5 30.5
Other (income) expense, net (2.5) (0.4) 11.3 (13.8)
Income (loss) before income taxes 12.7 4.9 (32.7) (26.1)
Income tax expense (benefit) 7.6 3.5 0.2 (1.1)
Net income (loss) $ 5.1 $ 1.4 $ (32.9) $ (25.0)
Earnings (loss) per share:        
Basic earnings (loss) per share (in dollars per share) $ 0.32 $ 0.09 $ (2.05) $ (1.58)
Diluted earnings (loss) per share (in dollars per share) $ 0.31 $ 0.09 $ (2.05) $ (1.58)
Weighted-average shares outstanding:        
Weighted-average shares outstanding, basic (in shares) 16,100 15,850 16,040 15,820
Weighted-average shares outstanding, diluted (in shares) 16,240 16,470 16,040 15,820
v3.19.3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Related party sales $ 5.7 $ 6.6 $ 17.3 $ 21.3
Related party cost of products sold $ 20.0 $ 39.3 $ 66.2 $ 117.2
v3.19.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 5.1 $ 1.4 $ (32.9) $ (25.0)
Other comprehensive income (loss):        
Foreign currency translation adjustments (2.2) 2.5 1.5 (1.6)
Change in fair value of cash flow hedge, net of $(0.1), $0.1, $0.0 and $0.3 tax, respectively (0.3) 0.2 0.0 0.3
Pension liability adjustments, net of $0.0, $0.0, $0.0 and $0.7 tax, respectively (0.0) (0.0) 0.1 (0.6)
Other comprehensive income (loss) (2.5) 2.7 1.6 (1.9)
Total comprehensive income (loss) $ 2.6 $ 4.1 $ (31.3) $ (26.9)
v3.19.3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Change in fair value of cash flow hedge, tax $ (0.1) $ 0.1 $ 0.0 $ 0.3
Pension liability adjustments, tax $ 0.0 $ 0.0 $ 0.0 $ 0.7
v3.19.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Current assets:    
Cash $ 59.3 $ 64.3
Accounts receivable, less allowances of $50.9 and $62.0, respectively 968.2 1,181.4
Related party receivable 2.8 3.2
Inventories 602.6 688.2
Other current assets 137.8 147.2
Total current assets 1,770.7 2,084.3
Property and equipment (net of accumulated depreciation and amortization of $337.3 and $320.7, respectively) 199.6 206.7
Goodwill 99.6 99.6
Other intangibles, net 53.4 57.2
Deferred income tax assets 58.3 56.5
Other non-current assets 456.1 25.4
Total assets 2,637.7 2,529.7
Current liabilities:    
Accounts payable 592.7 641.9
Related party payable 6.5 9.3
Accrued payroll and benefits 50.8 56.5
Other accrued liabilities 223.3 134.7
Current portion of debt 9.9 6.7
Financing obligations, current portion 0.0 0.6
Total current liabilities 883.2 849.7
Long-term debt, net of current portion 726.2 963.6
Financing obligations, less current portion 0.0 23.6
Defined benefit pension obligations 20.8 21.1
Other non-current liabilities 482.9 128.6
Total liabilities 2,113.1 1,986.6
Commitments and contingencies (Note 12)
Shareholders' equity:    
Preferred stock, $0.01 par value, 10.0 million shares authorized, none issued 0.0 0.0
Common stock, $0.01 par value, 100.0 million shares authorized; shares issued - 16.4 million and 16.2 million, respectively; shares outstanding - 16.1 million and 15.9 million, respectively 0.2 0.2
Additional paid-in capital 615.8 605.7
Accumulated (deficit) earnings (38.7) (8.5)
Accumulated other comprehensive loss (39.1) (40.7)
Treasury stock at cost - 0.3 million shares at September 30, 2019 and December 31, 2018 (13.6) (13.6)
Total shareholders' equity 524.6 543.1
Total liabilities and shareholders' equity $ 2,637.7 $ 2,529.7
v3.19.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Operating activities    
Net income (loss) $ (32.9) $ (25.0)
Depreciation and amortization 39.5 41.5
Amortization of deferred financing fees 1.9 2.0
Net losses (gains) on dispositions of property and equipment (0.1) (2.2)
Goodwill and long-lived asset impairment charges 0.0 0.2
Provision for allowance for doubtful accounts 13.8 18.5
Deferred income tax (benefit) (2.9) (3.2)
Stock-based compensation 12.4 15.2
Other non-cash items, net 9.9 (6.8)
Changes in operating assets and liabilities    
Accounts receivable and related party receivable 193.1 (60.6)
Inventories 87.8 (17.2)
Other current assets 29.7 (26.1)
Accounts payable and related party payable (84.8) 78.1
Accrued payroll and benefits (5.9) (17.5)
Other accrued liabilities (0.4) 15.4
Other 9.4 (4.8)
Net cash provided by (used for) operating activities 270.5 7.5
Investing activities    
Property and equipment additions (22.2) (33.7)
Proceeds from asset sales 0.3 4.1
Net cash provided by (used for) investing activities (21.9) (29.6)
Financing activities    
Change in book overdrafts 31.4 (30.3)
Borrowings of long-term debt 5,038.3 4,058.1
Repayments of long-term debt (5,306.1) (3,988.4)
Payments under right-of-use finance leases and capital leases, respectively (6.8)  
Payments under right-of-use finance leases and capital leases, respectively   (5.3)
Payments under financing obligations (including obligations to related party of $8.6 in the prior year period) 0.0 (9.1)
Payments under Tax Receivable Agreement (7.8) (9.9)
Other (2.4) (2.1)
Net cash provided by (used for) financing activities (253.4) 13.0
Effect of exchange rate changes on cash (0.2) (0.3)
Net change in cash (5.0) (9.4)
Cash at beginning of period 64.3 80.3
Cash at end of period 59.3 70.9
Supplemental cash flow information    
Cash paid for income taxes, net of refunds 3.1 1.3
Cash paid for interest 28.1 28.0
Non-cash investing and financing activities    
Non-cash additions to property and equipment for right-of-use finance leases and capital leases, respectively 9.8 29.8
Non-cash additions to other non-current assets for right-of-use operating leases $ 107.7 $ 0.0
v3.19.3
Condensed Consolidated Statements of Cash Flows (Parenthetical)
$ in Millions
 9 Months Ended
Sep. 30, 2018
USD ($)
Statement of Cash Flows [Abstract]  
Repayments of related party obligation $ 8.6
v3.19.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Assets    
Allowance for doubtful accounts $ 50.9 $ 62.0
Depreciation and amortization $ 337.3 $ 320.7
Shareholders' equity:    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 16,400,000 16,200,000
Common stock, shares outstanding (in shares) 16,100,000 15,900,000
Treasury stock, at cost (in shares) 300,000 300,000
v3.19.3
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock Issued
Additional Paid-in Capital
Accumulated (Deficit) Earnings
AOCL
 [1]
Treasury Stock
Beginning balance (in shares) at Dec. 31, 2017   (16.0)       (0.3)
Beginning balance at Dec. 31, 2017 $ 549.7 $ 0.2 $ 590.2 $ 6.4 $ (33.5) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (15.8)     (15.8)    
Other comprehensive income (loss) 0.0       0.0  
Stock-based compensation 5.6   5.6      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.1        
Issuance of common stock, net of stock received for minimum tax withholdings (1.8) $ 0.0 (1.8)      
Ending balance (in shares) at Mar. 31, 2018   (16.1)       (0.3)
Ending balance at Mar. 31, 2018 537.7 $ 0.2 594.0 (8.6) (34.3) $ (13.6)
Beginning balance (in shares) at Dec. 31, 2017   (16.0)       (0.3)
Beginning balance at Dec. 31, 2017 549.7 $ 0.2 590.2 6.4 (33.5) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (25.0)          
Other comprehensive income (loss) (1.9)          
Ending balance (in shares) at Sep. 30, 2018   (16.2)       (0.3)
Ending balance at Sep. 30, 2018 536.7 $ 0.2 603.3 (17.8) (35.4) $ (13.6)
Beginning balance (in shares) at Mar. 31, 2018   (16.1)       (0.3)
Beginning balance at Mar. 31, 2018 537.7 $ 0.2 594.0 (8.6) (34.3) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (10.6)     (10.6)    
Other comprehensive income (loss) (3.8)       (3.8)  
Stock-based compensation 5.1   5.1      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.1        
Issuance of common stock, net of stock received for minimum tax withholdings (0.2) $ 0.0 (0.2)      
Ending balance (in shares) at Jun. 30, 2018   (16.2)       (0.3)
Ending balance at Jun. 30, 2018 528.2 $ 0.2 598.9 (19.2) (38.1) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 1.4     1.4    
Other comprehensive income (loss) 2.7       2.7  
Stock-based compensation 4.5   4.5      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.0        
Issuance of common stock, net of stock received for minimum tax withholdings (0.1) $ 0.0 (0.1)      
Ending balance (in shares) at Sep. 30, 2018   (16.2)       (0.3)
Ending balance at Sep. 30, 2018 536.7 $ 0.2 603.3 (17.8) (35.4) $ (13.6)
Beginning balance (in shares) at Dec. 31, 2018   (16.2)       (0.3)
Beginning balance at Dec. 31, 2018 543.1 $ 0.2 605.7 (8.5) (40.7) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (26.7)     (26.7)    
Other comprehensive income (loss) 2.5       2.5  
Stock-based compensation 4.7   4.7      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.2        
Issuance of common stock, net of stock received for minimum tax withholdings (2.7) $ 0.0 (2.7)      
Ending balance (in shares) at Mar. 31, 2019   (16.4)       (0.3)
Ending balance at Mar. 31, 2019 523.6 $ 0.2 607.7 (32.5) (38.2) $ (13.6)
Beginning balance (in shares) at Dec. 31, 2018   (16.2)       (0.3)
Beginning balance at Dec. 31, 2018 543.1 $ 0.2 605.7 (8.5) (40.7) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (32.9)          
Other comprehensive income (loss) 1.6          
Ending balance (in shares) at Sep. 30, 2019   (16.4)       (0.3)
Ending balance at Sep. 30, 2019 524.6 $ 0.2 615.8 (38.7) (39.1) $ (13.6)
Beginning balance (in shares) at Mar. 31, 2019   (16.4)       (0.3)
Beginning balance at Mar. 31, 2019 523.6 $ 0.2 607.7 (32.5) (38.2) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (11.3)     (11.3)    
Other comprehensive income (loss) 1.6       1.6  
Stock-based compensation 4.3   4.3      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.0        
Issuance of common stock, net of stock received for minimum tax withholdings 0.5 $ 0.0 0.5      
Ending balance (in shares) at Jun. 30, 2019   (16.4)       (0.3)
Ending balance at Jun. 30, 2019 518.7 $ 0.2 612.5 (43.8) (36.6) $ (13.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 5.1     5.1    
Other comprehensive income (loss) (2.5)       (2.5)  
Stock-based compensation 3.4   3.4      
Issuance of common stock, net of stock received for minimum tax withholdings (in shares)   0.0        
Issuance of common stock, net of stock received for minimum tax withholdings (0.1) $ 0.0 (0.1)      
Ending balance (in shares) at Sep. 30, 2019   (16.4)       (0.3)
Ending balance at Sep. 30, 2019 $ 524.6 $ 0.2 $ 615.8 $ (38.7) $ (39.1) $ (13.6)
[1] Accumulated other comprehensive loss.
v3.19.3
Business and Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business and Summary of Significant Accounting Policies
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Veritiv Corporation ("Veritiv" or the "Company") is a North American business-to-business distributor of packaging, facility solutions, print and publishing products and services. Additionally, Veritiv provides logistics and supply chain management solutions to its customers. Veritiv was established in 2014, following the merger (the "Merger") of International Paper Company's xpedx distribution solutions business ("xpedx") and UWW Holdings, Inc. ("UWWH"), the parent company of Unisource Worldwide, Inc. ("Unisource"). Veritiv operates from approximately 150 distribution centers primarily throughout the United States ("U.S."), Canada and Mexico.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete set of annual audited financial statements.

The accompanying unaudited financial information should be read in conjunction with the Consolidated Financial Statements and Notes contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2018. In the opinion of management, all adjustments, including normal recurring accruals and other adjustments, considered necessary for a fair presentation of the interim financial information have been included. The operating results for the interim periods are not necessarily indicative of results for the full year. These financial statements include all of the Company's subsidiaries. All significant intercompany transactions between Veritiv's businesses have been eliminated.

Use of Estimates

The preparation of unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and certain financial statement disclosures. Estimates and assumptions are used for, but not limited to, revenue recognition, right-of-use ("ROU") asset and liability valuations, accounts receivable valuation, inventory valuation, employee benefit plans, income tax contingency accruals and valuation allowances, recognition of the Tax Cuts and Jobs Act (the "Tax Act"), multi-employer pension plan withdrawal liabilities, contingency accruals and goodwill and other intangible asset valuations. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Estimates are revised as additional information becomes available.

Accounting Pronouncements

Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("Topic 842") and its related interpretations. The standard requires lessees to recognize ROU assets and liabilities for leases with a lease term greater than twelve months on their balance sheet. The pattern and classification of expense recognition in a lessee's statement of operations remains similar to prior accounting guidance. The new standard also eliminates the prior guidance related to real estate specific provisions. Upon adoption, the Company recorded (i) operating lease obligations and related ROU assets of approximately $428 million and (ii) an increase to retained earnings of $2.7 million, primarily driven by the derecognition of the unamortized deferred gain from the 2017 sale of the Austin, Texas property. The Company's debt covenants and bank capital requirements were not impacted by the adoption of this ASU.
    
The guidance allows an entity to make an election to adopt the standard using either a modified retrospective approach, applying the standard to leases that existed at the beginning of the earliest period presented and those entered into thereafter with restated comparative period financial statements, or an additional transition approach (under ASU 2018-11), which allows an entity to initially apply the new lease standard at the adoption date (January 1, 2019, for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
Consequently, an entity's reporting for the comparative periods presented in the financial statements, in the period in which it adopts the new lease standard, will not be restated and will continue to be in accordance with prior U.S. GAAP (Topic 840, Leases). The Company adopted this ASU applying the additional transition approach.

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 Company elected to apply the package of practical expedients to all leases that commenced prior to the date of adoption. 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 ROU 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. The Company made a policy election to exclude short-term leases from the balance sheet and to separate lease and non-lease components for most lease categories. The Company also made a policy election to not use hindsight to determine lease term and when assessing existing ROU assets for impairment. See Note 3, Leases, for additional information regarding the Company's leases.

Recently Issued Accounting Standards Not Yet Adopted
 
 
 
 
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 2018-13, Fair Value Measurement (Topic 820)

 
The standard modifies the disclosure requirements on fair value measurements by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date.

 
January 1, 2020; early adoption is permitted
 
The Company is currently evaluating the impact this ASU will have on its disclosures. The Company currently plans to adopt this ASU on January 1, 2020.

 
 
 
 
 
 
 

 
 
 
 
 
 
 
Recently Issued Accounting Standards Not Yet Adopted (continued)
 
 
 
 
Standard
 
Description
 
Effective Date
 
Effect on the Financial Statements or Other Significant Matters
ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)
 
The standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans.  The guidance removes disclosures that are no longer considered cost beneficial. This standard requires new disclosures for the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  The amendments in this update are effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented.
 
December 31, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its disclosures. The Company currently plans to adopt this ASU on December 31, 2020.
ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)

 
The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update also require companies to expense capitalized implementation costs over the term of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The amendments also stipulate presentation requirements for the Statement of Operations, Balance Sheet and Statement of Cash Flows. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.

 
January 1, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2020.
v3.19.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
2. REVENUE RECOGNITION

The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("Topic 606") on January 1, 2018 using the modified retrospective approach for all contracts not completed as of the date of adoption, with no impact to the opening retained earnings. The Company elected to adopt certain practical expedients outlined in Topic 606. As such, Veritiv does not include sales tax in the transaction price and does recognize revenue in the amount to which it has a right to invoice the customer as it believes that amount corresponds directly with the value provided to the customer. Additionally, Veritiv utilized certain exceptions allowed under Topic 606, including: (i) not assessing whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer and (ii) not disclosing the value of unsatisfied performance obligations for contracts with an original estimated length of time to convert of one year or less.

Revenue Recognition

Veritiv applies the five-step model to assess its contracts with customers. The Company's revenue is reported as net sales and is measured as the determinable transaction price, net of any variable consideration (e.g., sales incentives and rights to return product) and any taxes collected from customers and remitted to governmental authorities.

When the Company enters into a sales arrangement with a customer, it believes it is probable that it will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. When management cannot conclude collectability is probable for shipments to a particular customer, revenue associated with that customer is not recognized until cash is collected or management is otherwise able to establish that collectability is probable. The Company has established credit and collection processes whereby collection assessments are performed and allowances for bad debt are recognized. As a normal business practice, Veritiv does not enter into contracts that require more than one year to complete or that contain significant financing components.
    
Additionally, Veritiv enters into incentive programs with certain of its customers, which are generally based on sales to those same customers. Veritiv follows the expected value method when estimating its retrospective incentives and records the estimated amount as a reduction to gross sales when revenue is recognized. Estimates of the variable consideration are based primarily on contract terms, current customer forecasts as well as historical experience.

Customer product returns are estimated based on historical experience and the identification of specific events necessitating an adjustment. The estimated return value is recognized as a reduction of gross sales and related cost of products sold. The estimated inventory returns value is recognized as part of inventories, while the estimated customer refund liability is recognized as part of other accrued liabilities on the Condensed Consolidated Balance Sheets.

A customer contract liability will arise when Veritiv has received payment for goods and services, but has not yet transferred the items to a customer and satisfied its performance obligations. Veritiv records a customer contract liability for performance obligations outstanding related to payments received in advance for customer deposits on equipment sales and its bill-and-hold arrangements. Veritiv expects to satisfy these remaining performance obligations and recognize the related revenues upon delivery of the goods and services to the customer's designated location within 12 months following receipt of the payment. Most equipment sales deposits are held for approximately 90 days and most bill-and-hold arrangements initially cover a 90 day period, but can be renewed by the customer.

As of September 30, 2019 and December 31, 2018, the Company recognized estimated inventory returns of approximately $2.2 million and $2.5 million, respectively, which are included in inventories on the Condensed Consolidated Balance Sheets. Additionally, the Company recognized customer contract liabilities related to its customer deposits for equipment sales and payments received for bill-and-hold arrangements, which are included in accounts payable on the Condensed Consolidated Balance Sheets. See the table below for a summary of the changes to the customer contract liabilities for the nine months ended September 30, 2019 and 2018:

 
Customer Contract Liabilities
(in millions)
2019
 
2018
Balance at January 1,
$
17.7

 
$
20.5

    Payments received
35.2

 
41.1

    Revenue recognized from beginning balance
(17.7
)
 
(18.1
)
    Revenue recognized from current year receipts
(22.4
)
 
(25.4
)
Balance at September 30,
$
12.8

 
$
18.1



Revenue Composition
    
Veritiv's revenues are primarily derived from purchase orders and rate agreements associated with (i) the delivery of standard listed products with observable standalone sale prices or (ii) transportation and warehousing services. Revenue generally consists of a single performance obligation to transfer a promised good or service and is short-term in nature. Revenues are recognized when control of the promised goods or services is transferred to Veritiv's customers and in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Sales
transactions with customers are designated free on board destination and revenue is recorded at the point in time when the product is delivered to the customer's designated location or when the customer has otherwise obtained the benefit of the goods, when title and risk of loss are transferred. Revenues from Veritiv's transportation services are recognized upon completion of the related delivery services and revenues from warehousing services are recognized over time as the storage services are provided. The Company considers handling and delivery as activities to fulfill its performance obligations. Billings for third-party freight are accounted for as net sales and handling and delivery costs are accounted for as distribution expenses.

Certain revenues are derived from shipments which are made directly from a manufacturer to a Veritiv customer. The Company is considered to be a principal to these transactions because, among other factors, it maintains control of the goods after they leave the supplier and before they are received at the customer's location, in most cases it selects the supplier and sets the price to the customer, and it bears the risk of the customer defaulting on payment or rejecting the goods. Revenues from these sales are reported on a gross basis in the Condensed Consolidated Statements of Operations and have historically represented approximately one-third of Veritiv's total net sales.

The Company has determined that certain services provided to customers represent activities necessary to obtain or fulfill the contract and deliver the end product to the customer's designated location. These costs have been evaluated and do not meet the criteria for recognition as capitalizable costs. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from both net sales and expenses.

Veritiv evaluated the nature of the products and services provided to its customers as well as the nature of the customer and the geographical distribution of its customer base and determined that the best representative level of disaggregated revenue is the product category basis as shown in the segment results. The Company is able to serve a wide variety of customers, from large national companies to small local customers, through its distribution network. Historically, the Company's ten largest customers have generated less than 10% of its consolidated annual net sales. Veritiv's principal markets are concentrated primarily across North America with net sales in the U.S., Canada and Mexico of approximately 90%, 8% and 1%, respectively.

The following is a brief description of the Company's four reportable segments, organized by major product category:

•
Packaging – The Packaging segment provides standard as well as custom and comprehensive packaging solutions for customers based in North America and in key global markets. The business is strategically focused on higher growth industries including light industrial/general manufacturing, food processing, fulfillment and internet retail, as well as niche verticals based on geographical and functional expertise. This segment also provides supply chain solutions, structural and graphic packaging design and engineering, automation, workflow and equipment services and kitting and fulfillment.

•
Facility Solutions – The Facility Solutions segment sources and sells cleaning, break-room and other supplies such as towels, tissues, wipers and dispensers, can liners, commercial cleaning chemicals, soaps and sanitizers, sanitary maintenance supplies and equipment, safety and hazard supplies, and shampoos and amenities primarily in the U.S., Canada and Mexico. Additionally, the Company offers total cost of ownership solutions with re-merchandising, budgeting and compliance reporting, and inventory management.

•
Print – The Print segment sells and distributes commercial printing, writing, copying, digital, paper-based wide format and specialty products, graphics consumables and graphics equipment primarily in the U.S., Canada and Mexico. This segment also includes customized paper conversion services of commercial printing paper for distribution to document centers and form printers. Veritiv's broad geographic platform of operations coupled with the breadth of paper and graphics products, including exclusive private brand offerings, provides a foundation to service national, regional and local customers across North America.

•
Publishing – The Publishing segment sells and distributes coated and uncoated commercial printing papers to publishers, retailers, converters, printers and specialty businesses for use in magazines, catalogs, books, directories, gaming, couponing, retail inserts and direct mail. This segment also provides print management, procurement and supply chain management solutions to simplify paper and print procurement processes for its customers.

The Company's consolidated financial results also include a "Corporate & Other" category which includes certain assets and costs not primarily attributable to any of the reportable segments. Corporate & Other also includes the Veritiv logistics solutions business which provides transportation and warehousing solutions.

See Note 13, Segment Information, for the disaggregation of revenue and other information related to the Company's reportable segments and Corporate & Other.
v3.19.3
Leases
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases
3. LEASES

The Company adopted Topic 842 and its related interpretations on January 1, 2019, applying the additional transition approach, available under ASU 2018-11, Leases, whereby the new lease standard is applied at the adoption date recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the reporting for the comparative periods presented in the financial statements in which the new lease standard is adopted will continue to be reported in accordance with Topic 840, Leases. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed for the carry-forward of historical lease classification. The Company did not elect the hindsight practical expedient in determining lease terms for existing leases and when assessing existing ROU assets for impairment. The Company does not expect the new accounting standard to have a material effect on future financial results as the adoption did not change the lease classifications of its historical operating leases. The Company's accounting for finance leases, previously reported as capital leases and financing obligations, remained unchanged except for the Company's one non-related party failed sale-leaseback. The Company determined that upon transition to Topic 842, the previously reported failed sale-leaseback financing obligation would be reported as a finance lease, and its land operating lease would now be combined with its building finance lease and reported together as one finance lease. Finance leases are reported as part of property and equipment, net and debt obligations on the Condensed Consolidated Balance Sheets. The Company elected the practical expedients permitted under Topic 842 and made accounting policy elections to (i) not include short-term leases on the balance sheets and (ii) not separate lease and non-lease components for its delivery equipment leases. The Company determines if an arrangement is a lease at lease inception and reviews lease arrangements for finance or operating lease classification at their commencement date. The Company leases certain property and equipment used for operations to limit exposure to risks related to ownership. The major leased asset categories include: real estate, delivery equipment, material handling equipment and computer and office equipment.

As of September 30, 2019, the Company operated from approximately 150 distribution centers of which approximately 140 were leased. These facilities are strategically located throughout the U.S., Canada and Mexico in order to efficiently serve the customer base in the surrounding areas while also facilitating expedited delivery services for special orders. The Company also leases various office spaces for corporate and sales functions. Real estate leases generally carry lease terms of three to seven years. Delivery equipment leases generally carry lease terms of three to eight years and other non-real estate leases generally carry lease terms of three to five years. In order to value the ROU assets and related liabilities, the Company makes certain estimates and assumptions related to establishing the lease term, discount rates and variable lease payments (e.g., rent escalations tied to changes in the Consumer Price Index). The exercise of any lease renewal or asset purchase option is at the Company's sole discretion. The lease term for all of the Company's leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream. Similar to a variable lease payment, certain delivery equipment leases include a provision for an amount the Company may be required to pay at the end of the lease for any residual value deficiency incurred by the lessor upon resale of the underlying asset. The Company uses the implicit rate of interest when it is available; however, as most of the Company's leases do not provide an implicit rate of interest, the Company uses its incremental borrowing rate based on information available at the lease commencement date in determining the discounted value of the lease payments. Lease expense and depreciation expense are recognized on a straight-line basis over the lease term, or for a finance lease, over the shorter of the life of the underlying asset or the lease term.
    
The components of lease expense were as follows:
(in millions)
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
 
Short-term lease expense(1)
Operating expenses
$
1.7

 
$
5.8

 
 
 
 
 
Operating lease expense(2)
Operating expenses
$
29.6

 
$
84.3

 
 
 
 
 
Finance lease expense:
 
 
 
 
Amortization of right-of-use assets
Depreciation and amortization
$
2.7

 
$
7.6

Interest expense
Interest expense, net
0.6

 
1.6

Total finance lease expense
 
$
3.3

 
$
9.2

 
 
 
 
 
Total Lease Cost
 
$
34.6

 
$
99.3

(1) Short-term lease expense includes expenses related to leases with a term of one month or less.
(2) Sublease income and variable lease expense are not included in the above table as the amounts were immaterial for the three and nine months ended September 30, 2019.

Supplemental balance sheet and other information were as follows:
(in millions, except weighted-average data)
 
September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating lease right-of-use assets
Other non-current assets
$
431.8

 
 
 
Operating lease obligations - current
Other accrued liabilities
$
88.0

Operating lease obligations - non-current
Other non-current liabilities
380.3

Total operating lease obligations
 
$
468.3

 
 
 
Weighted-average remaining lease term in years
 
6.8

Weighted-average discount rate
 
4.6
%
 
 
 
Finance Leases:
 
 
Finance lease right-of-use assets
Property and equipment
$
67.0

 
 
 
Finance lease obligations - current
Current portion of debt
$
9.5

Finance lease obligations - non-current
Long-term debt, net of current portion
60.8

Total finance lease obligations
 
$
70.3

 
 
 
Weighted-average remaining lease term in years
 
8.3

Weighted-average discount rate
 
3.3
%


Cash paid for amounts included in the measurement of lease liabilities was as follows:
(in millions)
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating cash flows from operating leases
Operating activities
$
81.3

 
 
 
Finance Leases:
 
 
Operating cash flows from finance leases
Operating activities
$
1.6

Financing cash flows from finance leases
Financing activities
6.8



Lease Commitments

Future minimum lease payments at September 30, 2019 were as follows:
(in millions)
Finance Leases
 
Operating Leases(1)
2019 (excluding the nine months ended September 30, 2019)
$
3.0

 
$
27.6

2020
11.7

 
105.3

2021
11.1

 
90.2

2022
10.6

 
75.7

2023
9.4

 
55.3

2024
7.7

 
45.4

Thereafter
27.4

 
151.8

Total future minimum lease payments
80.9

 
551.3

Amount representing interest
(10.6
)
 
(83.0
)
Total future minimum lease payments, net of interest
$
70.3

 
$
468.3


(1) Future sublease income is not included in the above table as the amount is immaterial.

Total future minimum lease payments at September 30, 2019 for finance and operating leases, including the amount representing interest, are comprised of $553.4 million for real estate leases and $78.8 million for non-real estate leases.

At September 30, 2019, the Company had committed to additional future obligations of approximately $21 million for operating leases of real estate that have not yet commenced and therefore are not included in the table above. These leases will commence over the next six months with an average lease term of six years.
    
Future minimum lease payments at December 31, 2018 were as follows:
 
Financing Obligation and Equipment Capital Leases
 
Operating Leases
(in millions)
 
Lease Obligations
 
Sublease Income
 
Total
2019
$
9.3

 
$
108.3

 
$
(0.3
)
 
$
108.0

2020
9.0

 
98.3

 
(0.1
)
 
98.2

2021
8.3

 
82.2

 
—

 
82.2

2022
7.9

 
69.3

 
—

 
69.3

2023
6.8

 
49.4

 
—

 
49.4

Thereafter
23.0

 
173.4

 
—

 
173.4

Total future minimum lease payments
64.3

 
580.9

 
(0.4
)
 
580.5

Amount representing interest
(11.6
)
 
—

 
—

 
—

Total future minimum lease payments, net of interest
$
52.7

 
$
580.9

 
$
(0.4
)
 
$
580.5
Leases
3. LEASES

The Company adopted Topic 842 and its related interpretations on January 1, 2019, applying the additional transition approach, available under ASU 2018-11, Leases, whereby the new lease standard is applied at the adoption date recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the reporting for the comparative periods presented in the financial statements in which the new lease standard is adopted will continue to be reported in accordance with Topic 840, Leases. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed for the carry-forward of historical lease classification. The Company did not elect the hindsight practical expedient in determining lease terms for existing leases and when assessing existing ROU assets for impairment. The Company does not expect the new accounting standard to have a material effect on future financial results as the adoption did not change the lease classifications of its historical operating leases. The Company's accounting for finance leases, previously reported as capital leases and financing obligations, remained unchanged except for the Company's one non-related party failed sale-leaseback. The Company determined that upon transition to Topic 842, the previously reported failed sale-leaseback financing obligation would be reported as a finance lease, and its land operating lease would now be combined with its building finance lease and reported together as one finance lease. Finance leases are reported as part of property and equipment, net and debt obligations on the Condensed Consolidated Balance Sheets. The Company elected the practical expedients permitted under Topic 842 and made accounting policy elections to (i) not include short-term leases on the balance sheets and (ii) not separate lease and non-lease components for its delivery equipment leases. The Company determines if an arrangement is a lease at lease inception and reviews lease arrangements for finance or operating lease classification at their commencement date. The Company leases certain property and equipment used for operations to limit exposure to risks related to ownership. The major leased asset categories include: real estate, delivery equipment, material handling equipment and computer and office equipment.

As of September 30, 2019, the Company operated from approximately 150 distribution centers of which approximately 140 were leased. These facilities are strategically located throughout the U.S., Canada and Mexico in order to efficiently serve the customer base in the surrounding areas while also facilitating expedited delivery services for special orders. The Company also leases various office spaces for corporate and sales functions. Real estate leases generally carry lease terms of three to seven years. Delivery equipment leases generally carry lease terms of three to eight years and other non-real estate leases generally carry lease terms of three to five years. In order to value the ROU assets and related liabilities, the Company makes certain estimates and assumptions related to establishing the lease term, discount rates and variable lease payments (e.g., rent escalations tied to changes in the Consumer Price Index). The exercise of any lease renewal or asset purchase option is at the Company's sole discretion. The lease term for all of the Company's leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream. Similar to a variable lease payment, certain delivery equipment leases include a provision for an amount the Company may be required to pay at the end of the lease for any residual value deficiency incurred by the lessor upon resale of the underlying asset. The Company uses the implicit rate of interest when it is available; however, as most of the Company's leases do not provide an implicit rate of interest, the Company uses its incremental borrowing rate based on information available at the lease commencement date in determining the discounted value of the lease payments. Lease expense and depreciation expense are recognized on a straight-line basis over the lease term, or for a finance lease, over the shorter of the life of the underlying asset or the lease term.
    
The components of lease expense were as follows:
(in millions)
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
 
Short-term lease expense(1)
Operating expenses
$
1.7

 
$
5.8

 
 
 
 
 
Operating lease expense(2)
Operating expenses
$
29.6

 
$
84.3

 
 
 
 
 
Finance lease expense:
 
 
 
 
Amortization of right-of-use assets
Depreciation and amortization
$
2.7

 
$
7.6

Interest expense
Interest expense, net
0.6

 
1.6

Total finance lease expense
 
$
3.3

 
$
9.2

 
 
 
 
 
Total Lease Cost
 
$
34.6

 
$
99.3

(1) Short-term lease expense includes expenses related to leases with a term of one month or less.
(2) Sublease income and variable lease expense are not included in the above table as the amounts were immaterial for the three and nine months ended September 30, 2019.

Supplemental balance sheet and other information were as follows:
(in millions, except weighted-average data)
 
September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating lease right-of-use assets
Other non-current assets
$
431.8

 
 
 
Operating lease obligations - current
Other accrued liabilities
$
88.0

Operating lease obligations - non-current
Other non-current liabilities
380.3

Total operating lease obligations
 
$
468.3

 
 
 
Weighted-average remaining lease term in years
 
6.8

Weighted-average discount rate
 
4.6
%
 
 
 
Finance Leases:
 
 
Finance lease right-of-use assets
Property and equipment
$
67.0

 
 
 
Finance lease obligations - current
Current portion of debt
$
9.5

Finance lease obligations - non-current
Long-term debt, net of current portion
60.8

Total finance lease obligations
 
$
70.3

 
 
 
Weighted-average remaining lease term in years
 
8.3

Weighted-average discount rate
 
3.3
%


Cash paid for amounts included in the measurement of lease liabilities was as follows:
(in millions)
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating cash flows from operating leases
Operating activities
$
81.3

 
 
 
Finance Leases:
 
 
Operating cash flows from finance leases
Operating activities
$
1.6

Financing cash flows from finance leases
Financing activities
6.8



Lease Commitments

Future minimum lease payments at September 30, 2019 were as follows:
(in millions)
Finance Leases
 
Operating Leases(1)
2019 (excluding the nine months ended September 30, 2019)
$
3.0

 
$
27.6

2020
11.7

 
105.3

2021
11.1

 
90.2

2022
10.6

 
75.7

2023
9.4

 
55.3

2024
7.7

 
45.4

Thereafter
27.4

 
151.8

Total future minimum lease payments
80.9

 
551.3

Amount representing interest
(10.6
)
 
(83.0
)
Total future minimum lease payments, net of interest
$
70.3

 
$
468.3


(1) Future sublease income is not included in the above table as the amount is immaterial.

Total future minimum lease payments at September 30, 2019 for finance and operating leases, including the amount representing interest, are comprised of $553.4 million for real estate leases and $78.8 million for non-real estate leases.

At September 30, 2019, the Company had committed to additional future obligations of approximately $21 million for operating leases of real estate that have not yet commenced and therefore are not included in the table above. These leases will commence over the next six months with an average lease term of six years.
    
Future minimum lease payments at December 31, 2018 were as follows:
 
Financing Obligation and Equipment Capital Leases
 
Operating Leases
(in millions)
 
Lease Obligations
 
Sublease Income
 
Total
2019
$
9.3

 
$
108.3

 
$
(0.3
)
 
$
108.0

2020
9.0

 
98.3

 
(0.1
)
 
98.2

2021
8.3

 
82.2

 
—

 
82.2

2022
7.9

 
69.3

 
—

 
69.3

2023
6.8

 
49.4

 
—

 
49.4

Thereafter
23.0

 
173.4

 
—

 
173.4

Total future minimum lease payments
64.3

 
580.9

 
(0.4
)
 
580.5

Amount representing interest
(11.6
)
 
—

 
—

 
—

Total future minimum lease payments, net of interest
$
52.7

 
$
580.9

 
$
(0.4
)
 
$
580.5
Leases
3. LEASES

The Company adopted Topic 842 and its related interpretations on January 1, 2019, applying the additional transition approach, available under ASU 2018-11, Leases, whereby the new lease standard is applied at the adoption date recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the reporting for the comparative periods presented in the financial statements in which the new lease standard is adopted will continue to be reported in accordance with Topic 840, Leases. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed for the carry-forward of historical lease classification. The Company did not elect the hindsight practical expedient in determining lease terms for existing leases and when assessing existing ROU assets for impairment. The Company does not expect the new accounting standard to have a material effect on future financial results as the adoption did not change the lease classifications of its historical operating leases. The Company's accounting for finance leases, previously reported as capital leases and financing obligations, remained unchanged except for the Company's one non-related party failed sale-leaseback. The Company determined that upon transition to Topic 842, the previously reported failed sale-leaseback financing obligation would be reported as a finance lease, and its land operating lease would now be combined with its building finance lease and reported together as one finance lease. Finance leases are reported as part of property and equipment, net and debt obligations on the Condensed Consolidated Balance Sheets. The Company elected the practical expedients permitted under Topic 842 and made accounting policy elections to (i) not include short-term leases on the balance sheets and (ii) not separate lease and non-lease components for its delivery equipment leases. The Company determines if an arrangement is a lease at lease inception and reviews lease arrangements for finance or operating lease classification at their commencement date. The Company leases certain property and equipment used for operations to limit exposure to risks related to ownership. The major leased asset categories include: real estate, delivery equipment, material handling equipment and computer and office equipment.

As of September 30, 2019, the Company operated from approximately 150 distribution centers of which approximately 140 were leased. These facilities are strategically located throughout the U.S., Canada and Mexico in order to efficiently serve the customer base in the surrounding areas while also facilitating expedited delivery services for special orders. The Company also leases various office spaces for corporate and sales functions. Real estate leases generally carry lease terms of three to seven years. Delivery equipment leases generally carry lease terms of three to eight years and other non-real estate leases generally carry lease terms of three to five years. In order to value the ROU assets and related liabilities, the Company makes certain estimates and assumptions related to establishing the lease term, discount rates and variable lease payments (e.g., rent escalations tied to changes in the Consumer Price Index). The exercise of any lease renewal or asset purchase option is at the Company's sole discretion. The lease term for all of the Company's leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream. Similar to a variable lease payment, certain delivery equipment leases include a provision for an amount the Company may be required to pay at the end of the lease for any residual value deficiency incurred by the lessor upon resale of the underlying asset. The Company uses the implicit rate of interest when it is available; however, as most of the Company's leases do not provide an implicit rate of interest, the Company uses its incremental borrowing rate based on information available at the lease commencement date in determining the discounted value of the lease payments. Lease expense and depreciation expense are recognized on a straight-line basis over the lease term, or for a finance lease, over the shorter of the life of the underlying asset or the lease term.
    
The components of lease expense were as follows:
(in millions)
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
 
Short-term lease expense(1)
Operating expenses
$
1.7

 
$
5.8

 
 
 
 
 
Operating lease expense(2)
Operating expenses
$
29.6

 
$
84.3

 
 
 
 
 
Finance lease expense:
 
 
 
 
Amortization of right-of-use assets
Depreciation and amortization
$
2.7

 
$
7.6

Interest expense
Interest expense, net
0.6

 
1.6

Total finance lease expense
 
$
3.3

 
$
9.2

 
 
 
 
 
Total Lease Cost
 
$
34.6

 
$
99.3

(1) Short-term lease expense includes expenses related to leases with a term of one month or less.
(2) Sublease income and variable lease expense are not included in the above table as the amounts were immaterial for the three and nine months ended September 30, 2019.

Supplemental balance sheet and other information were as follows:
(in millions, except weighted-average data)
 
September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating lease right-of-use assets
Other non-current assets
$
431.8

 
 
 
Operating lease obligations - current
Other accrued liabilities
$
88.0

Operating lease obligations - non-current
Other non-current liabilities
380.3

Total operating lease obligations
 
$
468.3

 
 
 
Weighted-average remaining lease term in years
 
6.8

Weighted-average discount rate
 
4.6
%
 
 
 
Finance Leases:
 
 
Finance lease right-of-use assets
Property and equipment
$
67.0

 
 
 
Finance lease obligations - current
Current portion of debt
$
9.5

Finance lease obligations - non-current
Long-term debt, net of current portion
60.8

Total finance lease obligations
 
$
70.3

 
 
 
Weighted-average remaining lease term in years
 
8.3

Weighted-average discount rate
 
3.3
%


Cash paid for amounts included in the measurement of lease liabilities was as follows:
(in millions)
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating cash flows from operating leases
Operating activities
$
81.3

 
 
 
Finance Leases:
 
 
Operating cash flows from finance leases
Operating activities
$
1.6

Financing cash flows from finance leases
Financing activities
6.8



Lease Commitments

Future minimum lease payments at September 30, 2019 were as follows:
(in millions)
Finance Leases
 
Operating Leases(1)
2019 (excluding the nine months ended September 30, 2019)
$
3.0

 
$
27.6

2020
11.7

 
105.3

2021
11.1

 
90.2

2022
10.6

 
75.7

2023
9.4

 
55.3

2024
7.7

 
45.4

Thereafter
27.4

 
151.8

Total future minimum lease payments
80.9

 
551.3

Amount representing interest
(10.6
)
 
(83.0
)
Total future minimum lease payments, net of interest
$
70.3

 
$
468.3


(1) Future sublease income is not included in the above table as the amount is immaterial.

Total future minimum lease payments at September 30, 2019 for finance and operating leases, including the amount representing interest, are comprised of $553.4 million for real estate leases and $78.8 million for non-real estate leases.

At September 30, 2019, the Company had committed to additional future obligations of approximately $21 million for operating leases of real estate that have not yet commenced and therefore are not included in the table above. These leases will commence over the next six months with an average lease term of six years.
    
Future minimum lease payments at December 31, 2018 were as follows:
 
Financing Obligation and Equipment Capital Leases
 
Operating Leases
(in millions)
 
Lease Obligations
 
Sublease Income
 
Total
2019
$
9.3

 
$
108.3

 
$
(0.3
)
 
$
108.0

2020
9.0

 
98.3

 
(0.1
)
 
98.2

2021
8.3

 
82.2

 
—

 
82.2

2022
7.9

 
69.3

 
—

 
69.3

2023
6.8

 
49.4

 
—

 
49.4

Thereafter
23.0

 
173.4

 
—

 
173.4

Total future minimum lease payments
64.3

 
580.9

 
(0.4
)
 
580.5

Amount representing interest
(11.6
)
 
—

 
—

 
—

Total future minimum lease payments, net of interest
$
52.7

 
$
580.9

 
$
(0.4
)
 
$
580.5
v3.19.3
Integration, Acquisition and Restructuring Charges
 9 Months Ended
Sep. 30, 2019
Restructuring and Related Activities [Abstract]  
Integration, Acquisition and Restructuring Charges
4. INTEGRATION, ACQUISITION AND RESTRUCTURING CHARGES

Merger of xpedx and Unisource

The Company currently expects net costs and charges associated with achieving anticipated cost savings and other synergies from the Merger (excluding charges relating to the complete or partial withdrawal from multi-employer pension plans ("MEPP"), some of which are uncertain at this time, and including cash proceeds from sales of assets related to consolidation), to be approximately $330 million to $340 million through December 31, 2019. Included in the estimate is approximately $120 million for capital expenditures, primarily consisting of information technology infrastructure, systems integration and planning. Through September 30, 2019, the Company has incurred approximately $317 million in costs and charges, including approximately $113 million for capital expenditures. The Company expects to substantially complete its Merger-related integration and restructuring efforts by December 31, 2019.
    
Integration and Acquisition Expenses

During the three and nine months ended September 30, 2019 and 2018, Veritiv incurred costs and charges related primarily to: internally dedicated integration management resources, retention compensation, information technology conversion costs, professional services and other costs to integrate its businesses.

The following table summarizes the components of integration and acquisition expenses:

 
Three Months Ended
September 30,

Nine Months Ended
September 30,
(in millions)
2019

2018

2019

2018
Integration management
$
2.7

 
$
4.4

 
$
8.1

 
$
13.3

Retention compensation
0.1

 
0.0

 
0.0

 
0.1

Information technology conversion costs
1.1

 
2.2

 
2.9

 
6.7

Legal, consulting and other professional fees
—

 
0.0

 
—

 
0.3

Other
0.4

 
0.9

 
1.6

 
2.4

All American Containers ("AAC") integration and acquisition
0.2

 
0.4

 
0.7

 
1.8

Total integration and acquisition expenses
$
4.5

 
$
7.9

 
$
13.3

 
$
24.6




Veritiv Restructuring Plan: Merger Related
As part of the Merger, the Company is executing on a multi-year restructuring program of its North American operations intended to integrate the legacy xpedx and Unisource operations, generate cost savings and capture synergies across the combined company. The restructuring plan includes initiatives to (i) consolidate warehouse facilities in overlapping markets, (ii) improve efficiency of the delivery network, (iii) consolidate customer service centers, (iv) reorganize the field sales and operations functions and (v) restructure the corporate general and administrative functions. As part of its restructuring efforts, the Company continues to evaluate its operations outside of North America to identify additional cost saving opportunities. The Company may elect to restructure its operations in specific countries, which may include staff reductions, lease terminations and facility closures, or the complete exit of a market. The Company may continue to record restructuring charges in the future as restructuring activities progress, which may include gains or losses from the disposition of assets. See Note 13, Segment Information, for the impact these charges had on the Company's reportable segments.

Related to these company-wide initiatives, the Company recorded net restructuring charges of $7.6 million and $4.8 million for the three months ended September 30, 2019 and 2018, respectively, and $16.9 million and $18.5 million for the nine months ended September 30, 2019 and 2018, respectively. Costs related to exiting a branded re-distribution business were included in restructuring charges, net, on the Condensed Consolidated Statements of Operations, and totaled $5.4 million for the three and nine months ended September 30, 2019. On June 30, 2018, the related party failed sale-leaseback agreements, originally entered into with Georgia-Pacific, expired in accordance with their terms. The agreements contained
provisions that required Veritiv to incur costs during the lease term related to general repairs and maintenance. Certain termination and repair costs were incurred at or near the end of the agreements' expirations. Costs related to properties that were exited as part of the restructuring plan were included in restructuring charges, net, on the Condensed Consolidated Statements of Operations, and totaled $10.4 million for the nine months ended September 30, 2018. Also, during the nine months ended September 30, 2018, the Company recognized a $2.1 million gain on the sale of a facility. As of September 30, 2019, the Company held for sale $10.1 million in assets related to these activities, which are included in other current assets on the Condensed Consolidated Balance Sheets.
    
Other direct costs reported in the tables below include facility closing costs, actual and estimated MEPP withdrawal charges and other incidental costs associated with the development, communication, administration and implementation of these initiatives.
    
The following table presents a summary of restructuring charges, net, related to active restructuring initiatives that were incurred during the current fiscal year, prior fiscal years and the cumulative recorded amounts since the initiatives began:

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
(Gain) Loss on Sale of Assets and Other (non-cash portion)
 
Total
2019 (through September 30)
$
6.8

 
$
10.2

 
$
(0.1
)
 
$
16.9

2018
3.3

 
22.3

 
(15.0
)
 
10.6

Prior years
20.0

 
47.9

 
(22.4
)
 
45.5

Cumulative
$
30.1

 
$
80.4

 
$
(37.5
)
 
$
73.0



The following is a summary of the Company's restructuring liability activity for the three and nine months ended September 30, 2019 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals):

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2018
$
4.7

 
$
25.1

 
$
29.8

Costs incurred
1.3

 
1.3

 
2.6

Payments
(1.0
)
 
(3.1
)
 
(4.1
)
Balance at March 31, 2019
5.0

 
23.3

 
28.3

Costs incurred
3.2

 
3.7

 
6.9

Payments
(1.3
)
 
(2.2
)
 
(3.5
)
Balance at June 30, 2019
6.9

 
24.8

 
31.7

Costs incurred
2.3

 
5.2

 
7.5

Payments
(1.5
)
 
(3.5
)
 
(5.0
)
Balance at September 30, 2019
$
7.7

 
$
26.5

 
$
34.2


    
The following is a summary of the Company's restructuring liability activity for the three and nine months ended September 30, 2018 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals):

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2017
$
4.4

 
$
25.2

 
$
29.6

Costs incurred
0.2

 
2.4

 
2.6

Payments
(1.0
)
 
(2.1
)
 
(3.1
)
Balance at March 31, 2018
3.6

 
25.5

 
29.1

Costs incurred
0.3

 
13.3

 
13.6

Payments
(0.3
)
 
(8.9
)
 
(9.2
)
Balance at June 30, 2018
3.6

 
29.9

 
33.5

Costs incurred
2.1

 
2.3

 
4.4

Payments
(0.6
)
 
(6.5
)
 
(7.1
)
Balance at September 30, 2018
$
5.1

 
$
25.7

 
$
30.8


    
Veritiv Restructuring Plan: Print Segment

To ensure that Veritiv is appropriately positioned to respond to the secular decline in the paper industry, the Company restructured its Print segment in 2018. The restructuring plan included initiatives within the Company's Print segment to improve the sustainability of the print business, better serve its customers' needs and work more effectively with suppliers by incorporating a more customer focused, collaborative, team-selling approach as well as better aligning its support functions.  The Company completed its efforts as of December 31, 2018 incurring costs of $10.7 million. During the three and nine months ended September 30, 2019, the Company paid $0.1 million and $1.8 million, respectively, of the Print segment restructuring liability and had a remaining balance of $0.2 million at September 30, 2019.

The following is a summary of the Company's Print restructuring liability activity for the three and nine months ended September 30, 2018:

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2017
$
—

 
$
—

 
$
—

Costs incurred
9.2

 
0.1

 
9.3

Payments
(0.7
)
 
0.0

 
(0.7
)
Balance at March 31, 2018
8.5

 
0.1

 
8.6

Costs incurred
0.0

 
0.3

 
0.3

Payments
(3.0
)
 
(0.3
)
 
(3.3
)
Balance at June 30, 2018
5.5

 
0.1

 
5.6

Costs incurred
0.4

 
0.2

 
0.6

Payments
(2.3
)
 
(0.3
)
 
(2.6
)
Balance at September 30, 2018
$
3.6

 
$
0.0

 
$
3.6
v3.19.3
Debt and Other Obligations
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt and Other Obligations
5. DEBT AND OTHER OBLIGATIONS

The Company's debt obligations were as follows:

(in millions)
September 30, 2019
 
December 31, 2018
Asset-Based Lending Facility (the "ABL Facility")
$
665.4

 
$
932.1

Commercial card program
0.4

 
—

Finance and capital leases, respectively
70.3

 
38.2

Total debt
736.1

 
970.3

Less: current portion of debt
(9.9
)
 
(6.7
)
Long-term debt, net of current portion
$
726.2

 
$
963.6



The Company determined that, upon transition to Topic 842, the previously reported failed sale-leaseback financing obligation would be reported as a finance lease, and its land operating lease would now be combined with its building finance lease and reported together as one finance lease, which is reported as part of the debt obligations in the table above. As the Company adopted Topic 842 using an approach whereby the prior reporting periods have not been restated to reflect the new guidance, the financing obligation value of that one previously reported failed sale-leaseback is shown below as of December 31, 2018:
(in millions)
December 31, 2018
Obligations - other financing
$
24.2

Less: current portion of financing obligations
(0.6
)
Financing obligations, less current portion
$
23.6



Availability under the ABL Facility is determined based upon a monthly borrowing base calculation which includes eligible customer receivables and inventory, less outstanding borrowings, letters of credit and certain designated reserves. As of September 30, 2019, the available additional borrowing capacity under the ABL Facility was approximately $354.1 million. As of September 30, 2019, the Company held $12.1 million in outstanding letters of credit.

The ABL Facility has a springing minimum fixed charge coverage ratio of at least 1.00 to 1.00 on a trailing four-quarter basis, which will be tested only when specified availability is less than the limits outlined under the ABL Facility. At September 30, 2019, the above test was not applicable and it is not expected to be applicable in the next 12 months.

Interest Rate Caps

The Company’s indebtedness under the ABL Facility creates interest rate risk. The Company actively monitors this risk with the objective to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in the interest rate. In July 2015, the Company entered into an interest rate cap agreement which expired on July 1, 2019; all related impacts to the Company's consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 were insignificant.

Effective September 13, 2019, the Company entered into a new interest rate cap agreement with an expiration date of September 13, 2022. The interest rate cap effectively limits the floating LIBOR-based portion of the interest rate. The notional amount of the interest rate cap covers $350.0 million of the Company’s floating-rate debt at 2.75% plus the applicable credit spread. The Company paid $0.6 million for the interest rate cap. As of September 30, 2019, the interest rate cap had a fair value that was not significant. The interest rate cap is classified within other non-current assets on the Condensed Consolidated Balance Sheets as of September 30, 2019 and amounts expected to be reclassified from AOCL into earnings within the following 12 months are not significant. The fair value was estimated using observable market-based inputs including interest rate curves and implied volatilities (Level 2). The Company designated the new interest rate cap as a cash flow hedge of exposure to changes in cash flows due to changes in the LIBOR-based portion of the interest rate above 2.75%. The Company has determined that the 2019 interest rate cap hedging relationship is effective.

The Company is exposed to counterparty credit risk for nonperformance and, in the event of nonperformance, to market risk for changes in the interest rate. The Company attempts to manage exposure to counterparty credit risk primarily by selecting only those counterparties that meet certain credit and other financial standards. The Company believes there has been no material change in the creditworthiness of its counterparty and believes the risk of nonperformance by such party is minimal.
    
Commercial Card Program

In May 2019, the Company entered into a commercial purchasing card agreement with a financial institution. The commercial card is used for business purpose purchasing and must be paid in-full monthly. The card currently carries a maximum credit limit of $37.5 million. At September 30, 2019, $0.4 million was outstanding on the commercial card and was classified as financing activity in our Condensed Consolidated Statements of Cash Flows.
v3.19.3
Income Taxes
 9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
6. INCOME TAXES

The Company has calculated the provision or benefit for income taxes during the three and nine month periods ended September 30, 2019, by applying an estimate of the annual effective tax rate ("AETR") for the full fiscal year to "ordinary" income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. For the 2018 periods presented, the Company determined that it could not reliably estimate income taxes utilizing an AETR for interim reporting periods. The 2018 AETR estimate was highly sensitive to estimates of ordinary income or loss such that minor fluctuations in these estimates could result in significant fluctuations of the Company’s AETR. Accordingly, Veritiv used its actual year-to-date effective tax rate to calculate income taxes for the three and nine months ended September 30, 2018.

The following table presents the expense (benefit) for income taxes and the effective tax rates for the three and nine months ended September 30, 2019 and 2018:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Income (loss) before income taxes
$
12.7

 
$
4.9

 
$
(32.7
)
 
$
(26.1
)
Income tax expense (benefit)
7.6

 
3.5

 
0.2

 
(1.1
)
Effective tax rate
59.8
%
 
71.4
%
 
(0.6
)%
 
4.2
%


The difference between the Company's effective tax rates for the three and nine months ended September 30, 2019 and 2018 and the U.S. statutory tax rate of 21.0% primarily relates to state income taxes (net of federal income tax benefit), tax expense for stock compensation vesting, Global Intangible Low-Taxed Income, non-deductible expenses, tax credits and the Company's pre-tax book income (loss) by jurisdiction. The Company's net operating loss ("NOL" or "NOLs") carryforwards continue to be subject to Section 382 limitations. In accordance with Notice 2003-65, the Company was in a net unrealized built-in gain position at the time of the Merger. During the nine months ended September 30, 2019, the Company's five year recognition period to recognize built-in gain ended. As such, the deferred tax asset and valuation allowance representing the book basis in excess of tax basis of various assets was written-off. There was no impact to the effective tax rate.

In January 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from accumulated other comprehensive income (AOCI) ("AOCI"), which gives companies the option to reclassify to retained earnings tax effects resulting from the Tax Act related to items in AOCI that the FASB refers to as having been stranded in AOCI. Veritiv elected to early adopt ASU 2018-02 as of January 1, 2018. As a result of adopting this standard, the Company reclassified $0.8 million from Veritiv's accumulated other comprehensive loss to retained earnings.
v3.19.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions
7. RELATED PARTY TRANSACTIONS

Agreements with the UWWH Stockholder

In January 2019 and 2018, in connection with the Tax Receivable Agreement ("TRA") executed at the time of the Merger, Veritiv paid $8.1 million and $10.1 million, respectively, in principal and interest to UWW Holdings, LLC (the "UWWH Stockholder"), one of Veritiv's existing stockholders and the former sole stockholder of UWWH, for the utilization of pre-merger NOLs in its 2017 and 2016 federal and state tax returns, respectively. See Note 9, Fair Value Measurements, for additional information regarding the TRA.
    
Transactions with Georgia-Pacific

Veritiv purchases certain inventory items from, and sells certain inventory items to, Georgia-Pacific in the normal course of business. As a result of the Merger and related private placement, Georgia-Pacific, as joint owner of the UWWH Stockholder, is a related party.

The following tables summarize the financial impact of these related party transactions with Georgia-Pacific:

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Sales to Georgia-Pacific, reflected in net sales
 
$
5.7

 
$
6.6

 
$
17.3

 
$
21.3

Purchases of inventory from Georgia-Pacific, recognized in cost of products sold
 
20.0

 
39.3

 
66.2

 
117.2


(in millions)
 
September 30, 2019
 
December 31, 2018
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet
 
$
11.3

 
$
17.3

Related party payable to Georgia-Pacific
 
6.5

 
9.3

Related party receivable from Georgia-Pacific
 
2.8

 
3.2
v3.19.3
Defined Benefit Plans
 9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Defined Benefit Plans 8. DEFINED BENEFIT PLANS

Veritiv does not maintain any active defined benefit plans for its non-union employees. Veritiv maintains a defined benefit pension plan in the U.S. for employees covered by certain collective bargaining agreements. Veritiv also assumed responsibility for Unisource's defined benefit plans, which include frozen cash balance accounts for certain former Unisource employees. Total net periodic benefit cost (credit) associated with these plans is summarized below:
    
 
Three Months Ended September 30, 2019
 
Three Months Ended September 30, 2018
(in millions)
U.S.
 
Canada
 
U.S.
 
Canada
Components of net periodic benefit cost (credit):
 
 
 
 
 
 
 
Service cost
$
0.5

 
$
0.0

 
$
0.5

 
$
0.0

 
 
 
 
 
 
 
 
Interest cost
$
0.5

 
$
0.7

 
$
0.6

 
$
0.7

Expected return on plan assets
(0.9
)
 
(0.8
)
 
(1.4
)
 
(0.9
)
Settlement loss
0.0

 
—

 
0.0

 
0.1

Amortization of net loss
(0.1
)
 
0.1

 
—

 
0.0

 Total other components
$
(0.5
)
 
$
0.0

 
$
(0.8
)
 
$
(0.1
)
Net periodic benefit cost (credit)
$
0.0

 
$
0.0

 
$
(0.3
)
 
$
(0.1
)

    
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
(in millions)
U.S.
 
Canada
 
U.S.
 
Canada
Components of net periodic benefit (credit) cost:
 
 
 
 
 
 
 
Service cost
$
1.4

 
$
0.2

 
$
1.5

 
$
0.2

 
 
 
 
 
 
 
 
Interest cost
$
1.6

 
$
2.2

 
$
1.9

 
$
2.1

Expected return on plan assets
(2.6
)
 
(2.7
)
 
(4.1
)
 
(2.9
)
Settlement loss
0.0

 
—

 
0.0

 
0.1

Amortization of net loss
0.0

 
0.1

 
—

 
0.1

 Total other components
$
(1.0
)
 
$
(0.4
)
 
$
(2.2
)
 
$
(0.6
)
Net periodic benefit (credit) cost
$
0.4

 
$
(0.2
)
 
$
(0.7
)
 
$
(0.4
)

    
The components of net periodic benefit cost (credit) other than the service cost component are included in other (income) expense, net in the Condensed Consolidated Statements of Operations.
v3.19.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements
9. FAIR VALUE MEASUREMENTS

At September 30, 2019 and December 31, 2018, the carrying amounts of cash, receivables, payables and other components of other current assets and other accrued liabilities approximate their fair values due to the short maturity of these items. Borrowings under the ABL Facility are at variable market interest rates and, accordingly, the carrying amount approximates fair value. See Note 5, Debt and Other Obligations, for additional information regarding the Company's ABL Facility and its related interest rate caps.

The Company's liabilities disclosed at fair value at September 30, 2019 were as follows:

(in millions)
 
Total

Level 1

Level 2

Level 3
ABL Facility
 
$
665.4


 
 
$
665.4

 
 
TRA contingent liability
 
32.9


 
 
 
 
32.9

AAC contingent consideration
 
20.0

 
 
 
 
 
20.0



The Company's liabilities disclosed at fair value at December 31, 2018 were as follows:

(in millions)
 
Total
 
Level 1
 
Level 2
 
Level 3
ABL Facility
 
$
932.1

 

 
$
932.1

 

TRA contingent liability
 
38.9

 

 

 
38.9

AAC contingent consideration
 
9.4

 
 
 
 
 
9.4



At the time of the Merger, the Company recorded a $59.4 million contingent liability associated with the TRA at fair value using a discounted cash flow model that reflected management's expectations about probability of payment. The fair value of the TRA contingent liability is a Level 3 measurement, which relied upon both Level 2 data (publicly observable data such as market interest rates) and Level 3 data (internal data such as the Company's projected revenues, taxable income and assumptions about the utilization of Unisource's NOLs, attributable to taxable periods prior to the Merger, by the Company). The amount payable under the TRA is contingent on the Company generating a certain level of taxable income prior to the expiration of the NOL carryforwards. Moreover, future trading of Company stock by significant shareholders may result in additional ownership changes as defined under Section 382 of the Internal Revenue Code, further limiting the use of Unisource's NOLs and the amount ultimately payable under the TRA. The contingent liability is remeasured at fair value at each reporting period-end with the change in fair value recognized in other (income) expense, net on the Condensed Consolidated Statements of Operations. At September 30, 2019, the Company remeasured the contingent liability using a discount rate of 3.9% (Moody's daily long-term corporate BAA bond yield). For the TRA contingent liability, there have been no transfers between the fair value measurement levels for the three and nine months ended September 30, 2019. The Company recognizes transfers between the fair value measurement levels at the end of the reporting period.

The following table provides a reconciliation of the beginning and ending balance of the TRA contingent liability for the three and nine months ended September 30, 2019:    

(in millions)
 
TRA Contingent Liability
Balance at December 31, 2018
 
$
38.9

Change in fair value adjustment recorded in other (income) expense, net
 
0.9

Principal payment
 
(7.8
)
Balance at March 31, 2019
 
32.0

Change in fair value adjustment recorded in other (income) expense, net
 
0.6

Balance at June 30, 2019
 
32.6

Change in fair value adjustment recorded in other (income) expense, net
 
0.3

Balance at September 30, 2019
 
$
32.9



The following table provides a reconciliation of the beginning and ending balance of the TRA contingent liability for the three and nine months ended September 30, 2018:    

(in millions)
 
TRA Contingent Liability
Balance at December 31, 2017
 
$
50.0

Change in fair value adjustment recorded in other (income) expense, net
 
(0.2
)
Principal payment
 
(9.9
)
Balance at March 31, 2018
 
39.9

Change in fair value adjustment recorded in other (income) expense, net
 
(0.2
)
Balance at June 30, 2018
 
39.7

Change in fair value adjustment recorded in other (income) expense, net
 
0.1

Balance at September 30, 2018
 
$
39.8



On August 31, 2017 (the "Acquisition Date"), Veritiv completed its acquisition of 100% of the equity interests in various AAC entities. The purchase price allocation for the acquisition of AAC included $22.2 million for the estimated fair value of contingent consideration. The maximum amount payable for the contingent consideration was $50.0 million, with up to $25.0 million payable at each of the first and second anniversaries of the Acquisition Date. The Company paid $2.5 million on December 26, 2018 for contingent consideration earned as of the first anniversary of the Acquisition Date. The estimated amount payable as of the second anniversary of the Acquisition Date was calculated to be approximately $20.0 million and is expected to be paid in the fourth quarter of 2019.

The following table provides a reconciliation of the beginning and ending balance of the AAC contingent liability for the three and nine months ended September 30, 2019:

(in millions)
 
AAC Contingent Liability
Balance at December 31, 2018
 
$
9.4

Change in fair value adjustment recorded in other (income) expense, net
 
5.4

Balance at March 31, 2019
 
14.8

Change in fair value adjustment recorded in other (income) expense, net
 
7.7

Balance at June 30, 2019
 
22.5

Change in fair value adjustment recorded in other (income) expense, net
 
(2.5
)
Balance at September 30, 2019
 
$
20.0



The following table provides a reconciliation of the beginning and ending balance of the AAC contingent liability for the three and nine months ended September 30, 2018:

(in millions)
 
AAC Contingent Liability
Balance at December 31, 2017
 
$
24.2

Change in fair value adjustment recorded in other (income) expense, net
 
(8.3
)
Balance at March 31, 2018
 
15.9

Change in fair value adjustment recorded in other (income) expense, net
 
(3.0
)
Balance at June 30, 2018
 
12.9

Change in fair value adjustment recorded in other (income) expense, net
 
0.3

Balance at September 30, 2018
 
$
13.2
v3.19.3
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
10. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share for Veritiv common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is similarly calculated, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued, except where the inclusion of such common shares would have an antidilutive impact.

A summary of the numerators and denominators used in the basic and diluted earnings (loss) per share calculations for the reportable periods is as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions, except per share data)
2019
 
2018
 
2019
 
2018
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
5.1

 
$
1.4

 
$
(32.9
)
 
$
(25.0
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average number of shares outstanding – basic
16.10

 
15.85

 
16.04

 
15.82

Dilutive effect of stock-based awards
0.14

 
0.62

 
—

 
—

Weighted-average number of shares outstanding – diluted
16.24

 
16.47

 
16.04

 
15.82

 
 
 
 
 
 
 
 
Earnings (loss) per share:
 
 
 
 
 
 
 
Basic earnings (loss) per share
$
0.32

 
$
0.09

 
$
(2.05
)
 
$
(1.58
)
Diluted earnings (loss) per share
$
0.31

 
$
0.09

 
$
(2.05
)
 
$
(1.58
)
 
 
 
 
 
 
 
 
Antidilutive stock-based awards excluded from computation of diluted earnings per share ("EPS")
0.64

 
0.09

 
1.05

 
1.13

Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met
0.61

 
0.49

 
0.61

 
0.49



In accordance with the Company's 2014 Omnibus Incentive Plan, as amended and restated as of March 8, 2017, shares of the Company's common stock were issued to plan participants whose Restricted Stock Units and/or Performance Condition Share Units vested during those periods. See the table below for information related to these transactions. Shares issued and withheld in the third quarters of 2019 and 2018 were not material:

(in millions)
2019
 
2018
Three months ended March 31,
 
 
 
     Shares issued
0.3

 
0.2

     Shares recovered for minimum tax withholding
(0.1
)
 
(0.1
)
     Net shares issued
0.2

 
0.1

 
 
 
 
Three months ended June 30,
 
 
 
     Shares issued
0.0

 
0.1

     Shares recovered for minimum tax withholding
0.0

 
0.0

     Net shares issued
0.0

 
0.1



The net share issuance is included on the Condensed Consolidated Statements of Shareholders' Equity for the three and nine months ended September 30, 2019 and 2018. For additional information related to these plans refer to the Company's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2018.
v3.19.3
Accumulated Other Comprehensive Loss (AOCL)
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Loss (AOCL)
11. ACCUMULATED OTHER COMPREHENSIVE LOSS ("AOCL")

Comprehensive income (loss) is reported in the Condensed Consolidated Statements of Comprehensive Income (Loss) and consists of net income (loss) and other gains and losses affecting shareholders' equity that, under U.S. GAAP, are excluded from net income (loss).

The following table provides the components of AOCL at September 30, 2019 (amounts are shown net of their related income tax effect, if any):

(in millions)
 
Foreign currency translation adjustments
 
Retirement liabilities
 
Interest rate cap
 
AOCL
Balance at December 31, 2018
 
$
(30.3
)
 
$
(10.1
)
 
$
(0.3
)
 
$
(40.7
)
     Unrealized net gains (losses) arising during the period
 
2.4

 
0.0

 
0.0

 
2.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.1

 
0.1

Net current period other comprehensive income (loss)
 
2.4

 
0.0

 
0.1

 
2.5

Balance at March 31, 2019
 
(27.9
)
 
(10.1
)
 
(0.2
)
 
(38.2
)
     Unrealized net gains (losses) arising during the period
 
1.3

 
0.1

 
0.0

 
1.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.2

 
0.2

Net current period other comprehensive income (loss)
 
1.3

 
0.1

 
0.2

 
1.6

Balance at June 30, 2019
 
(26.6
)
 
(10.0
)
 
—

 
(36.6
)
     Unrealized net gains (losses) arising during the period
 
(2.2
)
 
—

 
(0.3
)
 
(2.5
)
Net current period other comprehensive income (loss)
 
(2.2
)
 
—

 
(0.3
)
 
(2.5
)
Balance at September 30, 2019
 
$
(28.8
)
 
$
(10.0
)
 
$
(0.3
)
 
$
(39.1
)
    
The following table provides the components of AOCL at September 30, 2018 (amounts are shown net of their related income tax effect, if any):

(in millions)
 
Foreign currency translation adjustments
 
Retirement liabilities
 
Interest rate cap
 
AOCL
Balance at December 31, 2017
 
$
(23.5
)
 
$
(9.3
)
 
$
(0.7
)
 
$
(33.5
)
     Unrealized net gains (losses) arising during the period
 
(0.2
)
 
—

 
0.0

 
(0.2
)
     Amounts reclassified from AOCL
 
—

 
(0.6
)
 
0.0

 
(0.6
)
Net current period other comprehensive income (loss)
 
(0.2
)
 
(0.6
)
 
0.0

 
(0.8
)
Balance at March 31, 2018
 
(23.7
)
 
(9.9
)
 
(0.7
)
 
(34.3
)
     Unrealized net gains (losses) arising during the period
 
(3.9
)
 
—

 
0.1

 
(3.8
)
Net current period other comprehensive income (loss)
 
(3.9
)
 
—

 
0.1

 
(3.8
)
Balance at June 30, 2018
 
(27.6
)
 
(9.9
)
 
(0.6
)
 
(38.1
)
     Unrealized net gains (losses) arising during the period
 
2.5

 
—

 
(0.1
)
 
2.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.3

 
0.3

Net current period other comprehensive income (loss)
 
2.5

 
—

 
0.2

 
2.7

Balance at September 30, 2018
 
$
(25.1
)
 
$
(9.9
)
 
$
(0.4
)
 
$
(35.4
)

See Note 6, Income Taxes, for information related to the Company's adoption of ASU 2018-02 in January 2018.
v3.19.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
12. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

From time to time, the Company is involved in various lawsuits, claims and regulatory and administrative proceedings arising out of its business relating to general commercial and contractual matters, governmental regulations, intellectual property rights, labor and employment matters, tax and other actions.

Although the ultimate outcome of any legal proceeding or investigation cannot be predicted with certainty, based on present information, including the Company's assessment of the merits of the particular claim, the Company does not expect that any asserted or unasserted legal claims or proceedings, individually or in the aggregate, will have a material adverse effect on its results of operations, financial condition or cash flows.

Escheat Audit

In 2013, Unisource was notified by the State of Delaware that it intended to examine the books and records of Unisource to determine compliance with Delaware escheat laws. Since that date, seven other states have joined with Delaware in the audit process, which is conducted by an outside firm on behalf of the states.

During the fourth quarter of 2017, the Company filed an election to convert the Delaware portion of the audit into a review under the State of Delaware's Voluntary Disclosure Agreement Program ("VDA").  Under the VDA, the Company will continue to identify source documents that support the historical treatment of the transactions at issue to determine the amount it believes is owed to Delaware.  Similarly, the Company will continue to identify source documents that support the historical treatment of the transactions under audit by the other participating states.

As of September 30, 2019 and December 31, 2018, the Company has recognized an estimated liability of approximately $16.0 million and $10.0 million, respectively, based upon the information available to date. The Company currently expects to complete the VDA and audit no later than early 2020. Due to the inherent uncertainties with respect to the ultimate outcome of these matters, any updates to this estimate of loss could have a material impact on the Company's results of operations, financial condition or cash flows.

Western Pennsylvania Teamsters and Employers Pension Fund

In April 2019, in the course of negotiations for a collective bargaining agreement, the Company negotiated a partial withdrawal from the Western Pennsylvania Teamsters and Employers Pension Fund (the "Fund"), a multi-employer pension plan.  During the second quarter of 2019, the Company recorded an estimated withdrawal liability of $6.5 million, which was unchanged as of September 30, 2019. The withdrawal charge was recorded in distribution expenses as it was not related to a restructuring activity. To date, Veritiv has not received a final determination letter from the Fund for the partial withdrawal. The Company expects that payments will occur over an approximate 20-year period.
v3.19.3
Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information
13. SEGMENT INFORMATION

Veritiv's business is organized under four reportable segments: Packaging, Facility Solutions, Print, and Publishing and Print Management ("Publishing"). This segment structure is consistent with the way the Chief Operating Decision Maker, who is Veritiv's Chief Executive Officer, makes operating decisions and manages the growth and profitability of the Company's business. The Company also has a Corporate & Other category, which includes certain assets and costs not primarily attributable to any of the reportable segments, as well as the Veritiv logistics solutions business which provides transportation and warehousing solutions.
    
The following tables present net sales, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, restructuring charges, net, integration and acquisition expenses and other similar charges including any severance costs, costs associated with warehouse and office openings or closings, consolidation, and relocation and other business optimization expenses, stock-based compensation expense, changes in the LIFO reserve, non-restructuring asset impairment charges, non-restructuring severance charges, non-restructuring pension charges, net, fair value adjustments related to contingent liabilities assumed in mergers and acquisitions and certain other adjustments), which is the metric management uses to assess operating performance of the segments, and certain other measures for each of the reportable segments and Corporate & Other for the periods presented:
    
(in millions)
Packaging
 
Facility Solutions
 
Print
 
Publishing
 
Total Reportable Segments
 
Corporate & Other
 
Total
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
871.4

 
$
307.9

 
$
523.0

 
$
190.1

 
$
1,892.4

 
$
32.1

 
$
1,924.5

Adjusted EBITDA
67.4

 
11.0

 
10.6

 
4.6

 
93.6

 
(48.6
)
 


Depreciation and amortization
4.6

 
1.8

 
2.1

 
0.0

 
8.5

 
4.8

 
13.3

Restructuring charges, net
5.8

 
6.1

 
4.3

 
(8.5
)
 
7.7

 
(0.1
)
 
7.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
899.3

 
$
330.3

 
$
668.2

 
$
258.5

 
$
2,156.3

 
$
36.2

 
$
2,192.5

Adjusted EBITDA
64.0

 
8.1

 
14.5

 
5.6

 
92.2

 
(39.5
)
 


Depreciation and amortization
4.5

 
1.6

 
2.0

 
0.2

 
8.3

 
4.8

 
13.1

Restructuring charges, net
2.5

 
1.9

 
0.9

 
0.0

 
5.3

 
0.1

 
5.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
2,598.3

 
$
918.1

 
$
1,605.5

 
$
603.7

 
$
5,725.6

 
$
98.6

 
$
5,824.2

Adjusted EBITDA
181.1

 
23.5

 
30.1

 
15.0

 
249.7

 
(141.0
)
 


Depreciation and amortization
13.8

 
5.3

 
6.3

 
0.4

 
25.8

 
13.7

 
39.5

Restructuring charges, net
8.5

 
7.3

 
6.2

 
(8.2
)
 
13.8

 
3.1

 
16.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
2,631.6

 
$
985.3

 
$
2,008.1

 
$
734.9

 
$
6,359.9

 
$
105.5

 
$
6,465.4

Adjusted EBITDA
182.0

 
19.8

 
47.6

 
17.2

 
266.6

 
(138.8
)
 

Depreciation and amortization
15.1

 
5.1

 
6.8

 
0.6

 
27.6

 
13.9

 
41.5

Restructuring charges, net
8.4

 
4.4

 
15.5

 
0.0

 
28.3

 
0.4

 
28.7


    
The table below presents a reconciliation of income (loss) before income taxes as reflected in the Condensed Consolidated Statements of Operations to Adjusted EBITDA for the reportable segments:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Income (loss) before income taxes
$
12.7

 
$
4.9

 
$
(32.7
)
 
$
(26.1
)
Interest expense, net
8.9

 
11.0

 
30.5

 
30.5

Depreciation and amortization
13.3

 
13.1

 
39.5

 
41.5

Restructuring charges, net
7.6

 
5.4

 
16.9

 
28.7

Stock-based compensation
3.4

 
4.5

 
12.4

 
15.2

LIFO reserve (decrease) increase
(3.9
)
 
4.0

 
(1.0
)
 
18.4

Non-restructuring asset impairment charges
—

 
0.2

 
—

 
0.2

Non-restructuring severance charges
1.3

 
0.5

 
4.0

 
2.3

Non-restructuring pension charges, net
0.0

 
(0.1
)
 
6.6

 
(0.8
)
Integration and acquisition expenses
4.5

 
7.9

 
13.3

 
24.6

Fair value adjustment on TRA contingent liability
0.3

 
0.1

 
1.8

 
(0.3
)
Fair value adjustment on contingent consideration liability
(2.5
)
 
0.3

 
10.6

 
(11.0
)
Escheat audit contingent liability
(1.0
)
 
0.8

 
6.0

 
0.8

Other
0.4

 
0.1

 
0.8

 
3.8

Adjustment for Corporate & Other
48.6

 
39.5

 
141.0

 
138.8

Adjusted EBITDA for reportable segments
$
93.6

 
$
92.2

 
$
249.7

 
$
266.6
v3.19.3
Business and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete set of annual audited financial statements.

The accompanying unaudited financial information should be read in conjunction with the Consolidated Financial Statements and Notes contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2018. In the opinion of management, all adjustments, including normal recurring accruals and other adjustments, considered necessary for a fair presentation of the interim financial information have been included. The operating results for the interim periods are not necessarily indicative of results for the full year. These financial statements include all of the Company's subsidiaries. All significant intercompany transactions between Veritiv's businesses have been eliminated.
Use of Estimates
Use of Estimates

The preparation of unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and certain financial statement disclosures. Estimates and assumptions are used for, but not limited to, revenue recognition, right-of-use ("ROU") asset and liability valuations, accounts receivable valuation, inventory valuation, employee benefit plans, income tax contingency accruals and valuation allowances, recognition of the Tax Cuts and Jobs Act (the "Tax Act"), multi-employer pension plan withdrawal liabilities, contingency accruals and goodwill and other intangible asset valuations. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Estimates are revised as additional information becomes available.
Accounting Pronouncements and Recently Issued Not Yet Adopted and Adopted Accounting Standards
Accounting Pronouncements

Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("Topic 842") and its related interpretations. The standard requires lessees to recognize ROU assets and liabilities for leases with a lease term greater than twelve months on their balance sheet. The pattern and classification of expense recognition in a lessee's statement of operations remains similar to prior accounting guidance. The new standard also eliminates the prior guidance related to real estate specific provisions. Upon adoption, the Company recorded (i) operating lease obligations and related ROU assets of approximately $428 million and (ii) an increase to retained earnings of $2.7 million, primarily driven by the derecognition of the unamortized deferred gain from the 2017 sale of the Austin, Texas property. The Company's debt covenants and bank capital requirements were not impacted by the adoption of this ASU.
    
The guidance allows an entity to make an election to adopt the standard using either a modified retrospective approach, applying the standard to leases that existed at the beginning of the earliest period presented and those entered into thereafter with restated comparative period financial statements, or an additional transition approach (under ASU 2018-11), which allows an entity to initially apply the new lease standard at the adoption date (January 1, 2019, for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
Consequently, an entity's reporting for the comparative periods presented in the financial statements, in the period in which it adopts the new lease standard, will not be restated and will continue to be in accordance with prior U.S. GAAP (Topic 840, Leases). The Company adopted this ASU applying the additional transition approach.

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 Company elected to apply the package of practical expedients to all leases that commenced prior to the date of adoption. 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 ROU 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. The Company made a policy election to exclude short-term leases from the balance sheet and to separate lease and non-lease components for most lease categories. The Company also made a policy election to not use hindsight to determine lease term and when assessing existing ROU assets for impairment. See Note 3, Leases, for additional information regarding the Company's leases.

Recently Issued Accounting Standards Not Yet Adopted
 
 
 
 
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 2018-13, Fair Value Measurement (Topic 820)

 
The standard modifies the disclosure requirements on fair value measurements by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date.

 
January 1, 2020; early adoption is permitted
 
The Company is currently evaluating the impact this ASU will have on its disclosures. The Company currently plans to adopt this ASU on January 1, 2020.

 
 
 
 
 
 
 

 
 
 
 
 
 
 
Recently Issued Accounting Standards Not Yet Adopted (continued)
 
 
 
 
Standard
 
Description
 
Effective Date
 
Effect on the Financial Statements or Other Significant Matters
ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)
 
The standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans.  The guidance removes disclosures that are no longer considered cost beneficial. This standard requires new disclosures for the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  The amendments in this update are effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented.
 
December 31, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its disclosures. The Company currently plans to adopt this ASU on December 31, 2020.
ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)

 
The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update also require companies to expense capitalized implementation costs over the term of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The amendments also stipulate presentation requirements for the Statement of Operations, Balance Sheet and Statement of Cash Flows. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.

 
January 1, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2020.
v3.19.3
Business and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Recently Issued Accounting Standards Not Yet Adopted
Recently Issued Accounting Standards Not Yet Adopted
 
 
 
 
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 2018-13, Fair Value Measurement (Topic 820)

 
The standard modifies the disclosure requirements on fair value measurements by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date.

 
January 1, 2020; early adoption is permitted
 
The Company is currently evaluating the impact this ASU will have on its disclosures. The Company currently plans to adopt this ASU on January 1, 2020.

 
 
 
 
 
 
 

 
 
 
 
 
 
 
Recently Issued Accounting Standards Not Yet Adopted (continued)
 
 
 
 
Standard
 
Description
 
Effective Date
 
Effect on the Financial Statements or Other Significant Matters
ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)
 
The standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans.  The guidance removes disclosures that are no longer considered cost beneficial. This standard requires new disclosures for the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  The amendments in this update are effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented.
 
December 31, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its disclosures. The Company currently plans to adopt this ASU on December 31, 2020.
ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)

 
The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update also require companies to expense capitalized implementation costs over the term of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The amendments also stipulate presentation requirements for the Statement of Operations, Balance Sheet and Statement of Cash Flows. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.

 
January 1, 2020; early adoption is permitted
 
The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements and related disclosures. The Company currently plans to adopt this ASU on January 1, 2020.
v3.19.3
Revenue Recognition (Tables)
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Schedule of Customer Contract Liabilities See the table below for a summary of the changes to the customer contract liabilities for the nine months ended September 30, 2019 and 2018:

 
Customer Contract Liabilities
(in millions)
2019
 
2018
Balance at January 1,
$
17.7

 
$
20.5

    Payments received
35.2

 
41.1

    Revenue recognized from beginning balance
(17.7
)
 
(18.1
)
    Revenue recognized from current year receipts
(22.4
)
 
(25.4
)
Balance at September 30,
$
12.8

 
$
18.1
v3.19.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Schedule of Components of Lease Expense and Cash Flows
Cash paid for amounts included in the measurement of lease liabilities was as follows:
(in millions)
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating cash flows from operating leases
Operating activities
$
81.3

 
 
 
Finance Leases:
 
 
Operating cash flows from finance leases
Operating activities
$
1.6

Financing cash flows from finance leases
Financing activities
6.8


The components of lease expense were as follows:
(in millions)
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Classification
Financial Statement Classification
 
Short-term lease expense(1)
Operating expenses
$
1.7

 
$
5.8

 
 
 
 
 
Operating lease expense(2)
Operating expenses
$
29.6

 
$
84.3

 
 
 
 
 
Finance lease expense:
 
 
 
 
Amortization of right-of-use assets
Depreciation and amortization
$
2.7

 
$
7.6

Interest expense
Interest expense, net
0.6

 
1.6

Total finance lease expense
 
$
3.3

 
$
9.2

 
 
 
 
 
Total Lease Cost
 
$
34.6

 
$
99.3

(1) Short-term lease expense includes expenses related to leases with a term of one month or less.
(2) Sublease income and variable lease expense are not included in the above table as the amounts were immaterial for the three and nine months ended September 30, 2019.
Schedule of Supplemental Balance Sheet and Other Information
Supplemental balance sheet and other information were as follows:
(in millions, except weighted-average data)
 
September 30, 2019
Lease Classification
Financial Statement Classification
Operating Leases:
 
 
Operating lease right-of-use assets
Other non-current assets
$
431.8

 
 
 
Operating lease obligations - current
Other accrued liabilities
$
88.0

Operating lease obligations - non-current
Other non-current liabilities
380.3

Total operating lease obligations
 
$
468.3

 
 
 
Weighted-average remaining lease term in years
 
6.8

Weighted-average discount rate
 
4.6
%
 
 
 
Finance Leases:
 
 
Finance lease right-of-use assets
Property and equipment
$
67.0

 
 
 
Finance lease obligations - current
Current portion of debt
$
9.5

Finance lease obligations - non-current
Long-term debt, net of current portion
60.8

Total finance lease obligations
 
$
70.3

 
 
 
Weighted-average remaining lease term in years
 
8.3

Weighted-average discount rate
 
3.3
%
Schedule of Operating Lease Maturity
Future minimum lease payments at September 30, 2019 were as follows:
(in millions)
Finance Leases
 
Operating Leases(1)
2019 (excluding the nine months ended September 30, 2019)
$
3.0

 
$
27.6

2020
11.7

 
105.3

2021
11.1

 
90.2

2022
10.6

 
75.7

2023
9.4

 
55.3

2024
7.7

 
45.4

Thereafter
27.4

 
151.8

Total future minimum lease payments
80.9

 
551.3

Amount representing interest
(10.6
)
 
(83.0
)
Total future minimum lease payments, net of interest
$
70.3

 
$
468.3
Schedule of Finance Lease Maturity
Future minimum lease payments at September 30, 2019 were as follows:
(in millions)
Finance Leases
 
Operating Leases(1)
2019 (excluding the nine months ended September 30, 2019)
$
3.0

 
$
27.6

2020
11.7

 
105.3

2021
11.1

 
90.2

2022
10.6

 
75.7

2023
9.4

 
55.3

2024
7.7

 
45.4

Thereafter
27.4

 
151.8

Total future minimum lease payments
80.9

 
551.3

Amount representing interest
(10.6
)
 
(83.0
)
Total future minimum lease payments, net of interest
$
70.3

 
$
468.3
Schedule of Future Minimum Lease Payments for Capital Leases
Future minimum lease payments at December 31, 2018 were as follows:
 
Financing Obligation and Equipment Capital Leases
 
Operating Leases
(in millions)
 
Lease Obligations
 
Sublease Income
 
Total
2019
$
9.3

 
$
108.3

 
$
(0.3
)
 
$
108.0

2020
9.0

 
98.3

 
(0.1
)
 
98.2

2021
8.3

 
82.2

 
—

 
82.2

2022
7.9

 
69.3

 
—

 
69.3

2023
6.8

 
49.4

 
—

 
49.4

Thereafter
23.0

 
173.4

 
—

 
173.4

Total future minimum lease payments
64.3

 
580.9

 
(0.4
)
 
580.5

Amount representing interest
(11.6
)
 
—

 
—

 
—

Total future minimum lease payments, net of interest
$
52.7

 
$
580.9

 
$
(0.4
)
 
$
580.5
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments at December 31, 2018 were as follows:
 
Financing Obligation and Equipment Capital Leases
 
Operating Leases
(in millions)
 
Lease Obligations
 
Sublease Income
 
Total
2019
$
9.3

 
$
108.3

 
$
(0.3
)
 
$
108.0

2020
9.0

 
98.3

 
(0.1
)
 
98.2

2021
8.3

 
82.2

 
—

 
82.2

2022
7.9

 
69.3

 
—

 
69.3

2023
6.8

 
49.4

 
—

 
49.4

Thereafter
23.0

 
173.4

 
—

 
173.4

Total future minimum lease payments
64.3

 
580.9

 
(0.4
)
 
580.5

Amount representing interest
(11.6
)
 
—

 
—

 
—

Total future minimum lease payments, net of interest
$
52.7

 
$
580.9

 
$
(0.4
)
 
$
580.5
v3.19.3
Integration, Acquisition and Restructuring Charges (Tables)
 9 Months Ended
Sep. 30, 2019
Restructuring and Related Activities [Abstract]  
Summary of the Components of Integration Expense The following table summarizes the components of integration and acquisition expenses:

 
Three Months Ended
September 30,

Nine Months Ended
September 30,
(in millions)
2019

2018

2019

2018
Integration management
$
2.7

 
$
4.4

 
$
8.1

 
$
13.3

Retention compensation
0.1

 
0.0

 
0.0

 
0.1

Information technology conversion costs
1.1

 
2.2

 
2.9

 
6.7

Legal, consulting and other professional fees
—

 
0.0

 
—

 
0.3

Other
0.4

 
0.9

 
1.6

 
2.4

All American Containers ("AAC") integration and acquisition
0.2

 
0.4

 
0.7

 
1.8

Total integration and acquisition expenses
$
4.5

 
$
7.9

 
$
13.3

 
$
24.6
Summary of Restructuring and Related Costs
The following table presents a summary of restructuring charges, net, related to active restructuring initiatives that were incurred during the current fiscal year, prior fiscal years and the cumulative recorded amounts since the initiatives began:

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
(Gain) Loss on Sale of Assets and Other (non-cash portion)
 
Total
2019 (through September 30)
$
6.8

 
$
10.2

 
$
(0.1
)
 
$
16.9

2018
3.3

 
22.3

 
(15.0
)
 
10.6

Prior years
20.0

 
47.9

 
(22.4
)
 
45.5

Cumulative
$
30.1

 
$
80.4

 
$
(37.5
)
 
$
73.0
Summary of the Company's Restructuring Activity
The following is a summary of the Company's Print restructuring liability activity for the three and nine months ended September 30, 2018:

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2017
$
—

 
$
—

 
$
—

Costs incurred
9.2

 
0.1

 
9.3

Payments
(0.7
)
 
0.0

 
(0.7
)
Balance at March 31, 2018
8.5

 
0.1

 
8.6

Costs incurred
0.0

 
0.3

 
0.3

Payments
(3.0
)
 
(0.3
)
 
(3.3
)
Balance at June 30, 2018
5.5

 
0.1

 
5.6

Costs incurred
0.4

 
0.2

 
0.6

Payments
(2.3
)
 
(0.3
)
 
(2.6
)
Balance at September 30, 2018
$
3.6

 
$
0.0

 
$
3.6


The following is a summary of the Company's restructuring liability activity for the three and nine months ended September 30, 2019 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals):

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2018
$
4.7

 
$
25.1

 
$
29.8

Costs incurred
1.3

 
1.3

 
2.6

Payments
(1.0
)
 
(3.1
)
 
(4.1
)
Balance at March 31, 2019
5.0

 
23.3

 
28.3

Costs incurred
3.2

 
3.7

 
6.9

Payments
(1.3
)
 
(2.2
)
 
(3.5
)
Balance at June 30, 2019
6.9

 
24.8

 
31.7

Costs incurred
2.3

 
5.2

 
7.5

Payments
(1.5
)
 
(3.5
)
 
(5.0
)
Balance at September 30, 2019
$
7.7

 
$
26.5

 
$
34.2


    
The following is a summary of the Company's restructuring liability activity for the three and nine months ended September 30, 2018 (costs incurred exclude any non-cash portion of restructuring gains or losses on asset disposals):

(in millions)
Severance and Related Costs
 
Other Direct Costs
 
Total
Balance at December 31, 2017
$
4.4

 
$
25.2

 
$
29.6

Costs incurred
0.2

 
2.4

 
2.6

Payments
(1.0
)
 
(2.1
)
 
(3.1
)
Balance at March 31, 2018
3.6

 
25.5

 
29.1

Costs incurred
0.3

 
13.3

 
13.6

Payments
(0.3
)
 
(8.9
)
 
(9.2
)
Balance at June 30, 2018
3.6

 
29.9

 
33.5

Costs incurred
2.1

 
2.3

 
4.4

Payments
(0.6
)
 
(6.5
)
 
(7.1
)
Balance at September 30, 2018
$
5.1

 
$
25.7

 
$
30.8
v3.19.3
Debt and Other Obligations (Tables)
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Long-term Obligations As the Company adopted Topic 842 using an approach whereby the prior reporting periods have not been restated to reflect the new guidance, the financing obligation value of that one previously reported failed sale-leaseback is shown below as of December 31, 2018:
(in millions)
December 31, 2018
Obligations - other financing
$
24.2

Less: current portion of financing obligations
(0.6
)
Financing obligations, less current portion
$
23.6


The Company's debt obligations were as follows:

(in millions)
September 30, 2019
 
December 31, 2018
Asset-Based Lending Facility (the "ABL Facility")
$
665.4

 
$
932.1

Commercial card program
0.4

 
—

Finance and capital leases, respectively
70.3

 
38.2

Total debt
736.1

 
970.3

Less: current portion of debt
(9.9
)
 
(6.7
)
Long-term debt, net of current portion
$
726.2

 
$
963.6
v3.19.3
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Provision for Income Taxes and the Effective Tax Rates
The following table presents the expense (benefit) for income taxes and the effective tax rates for the three and nine months ended September 30, 2019 and 2018:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Income (loss) before income taxes
$
12.7

 
$
4.9

 
$
(32.7
)
 
$
(26.1
)
Income tax expense (benefit)
7.6

 
3.5

 
0.2

 
(1.1
)
Effective tax rate
59.8
%
 
71.4
%
 
(0.6
)%
 
4.2
%
v3.19.3
Related Party Transactions (Tables)
 9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Summarized Financial Impact of Transactions with Related Party
The following tables summarize the financial impact of these related party transactions with Georgia-Pacific:

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Sales to Georgia-Pacific, reflected in net sales
 
$
5.7

 
$
6.6

 
$
17.3

 
$
21.3

Purchases of inventory from Georgia-Pacific, recognized in cost of products sold
 
20.0

 
39.3

 
66.2

 
117.2


(in millions)
 
September 30, 2019
 
December 31, 2018
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet
 
$
11.3

 
$
17.3

Related party payable to Georgia-Pacific
 
6.5

 
9.3

Related party receivable from Georgia-Pacific
 
2.8

 
3.2
v3.19.3
Defined Benefit Plans (Tables)
 9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Net Periodic Benefit Costs and Credits Total net periodic benefit cost (credit) associated with these plans is summarized below:
    
 
Three Months Ended September 30, 2019
 
Three Months Ended September 30, 2018
(in millions)
U.S.
 
Canada
 
U.S.
 
Canada
Components of net periodic benefit cost (credit):
 
 
 
 
 
 
 
Service cost
$
0.5

 
$
0.0

 
$
0.5

 
$
0.0

 
 
 
 
 
 
 
 
Interest cost
$
0.5

 
$
0.7

 
$
0.6

 
$
0.7

Expected return on plan assets
(0.9
)
 
(0.8
)
 
(1.4
)
 
(0.9
)
Settlement loss
0.0

 
—

 
0.0

 
0.1

Amortization of net loss
(0.1
)
 
0.1

 
—

 
0.0

 Total other components
$
(0.5
)
 
$
0.0

 
$
(0.8
)
 
$
(0.1
)
Net periodic benefit cost (credit)
$
0.0

 
$
0.0

 
$
(0.3
)
 
$
(0.1
)

    
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
(in millions)
U.S.
 
Canada
 
U.S.
 
Canada
Components of net periodic benefit (credit) cost:
 
 
 
 
 
 
 
Service cost
$
1.4

 
$
0.2

 
$
1.5

 
$
0.2

 
 
 
 
 
 
 
 
Interest cost
$
1.6

 
$
2.2

 
$
1.9

 
$
2.1

Expected return on plan assets
(2.6
)
 
(2.7
)
 
(4.1
)
 
(2.9
)
Settlement loss
0.0

 
—

 
0.0

 
0.1

Amortization of net loss
0.0

 
0.1

 
—

 
0.1

 Total other components
$
(1.0
)
 
$
(0.4
)
 
$
(2.2
)
 
$
(0.6
)
Net periodic benefit (credit) cost
$
0.4

 
$
(0.2
)
 
$
(0.7
)
 
$
(0.4
)
v3.19.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Liabilities Disclosed at Fair Value
The Company's liabilities disclosed at fair value at September 30, 2019 were as follows:

(in millions)
 
Total

Level 1

Level 2

Level 3
ABL Facility
 
$
665.4


 
 
$
665.4

 
 
TRA contingent liability
 
32.9


 
 
 
 
32.9

AAC contingent consideration
 
20.0

 
 
 
 
 
20.0



The Company's liabilities disclosed at fair value at December 31, 2018 were as follows:

(in millions)
 
Total
 
Level 1
 
Level 2
 
Level 3
ABL Facility
 
$
932.1

 

 
$
932.1

 

TRA contingent liability
 
38.9

 

 

 
38.9

AAC contingent consideration
 
9.4

 
 
 
 
 
9.4
Reconciliation of the Contingent Liability
The following table provides a reconciliation of the beginning and ending balance of the TRA contingent liability for the three and nine months ended September 30, 2019:    

(in millions)
 
TRA Contingent Liability
Balance at December 31, 2018
 
$
38.9

Change in fair value adjustment recorded in other (income) expense, net
 
0.9

Principal payment
 
(7.8
)
Balance at March 31, 2019
 
32.0

Change in fair value adjustment recorded in other (income) expense, net
 
0.6

Balance at June 30, 2019
 
32.6

Change in fair value adjustment recorded in other (income) expense, net
 
0.3

Balance at September 30, 2019
 
$
32.9



The following table provides a reconciliation of the beginning and ending balance of the TRA contingent liability for the three and nine months ended September 30, 2018:    

(in millions)
 
TRA Contingent Liability
Balance at December 31, 2017
 
$
50.0

Change in fair value adjustment recorded in other (income) expense, net
 
(0.2
)
Principal payment
 
(9.9
)
Balance at March 31, 2018
 
39.9

Change in fair value adjustment recorded in other (income) expense, net
 
(0.2
)
Balance at June 30, 2018
 
39.7

Change in fair value adjustment recorded in other (income) expense, net
 
0.1

Balance at September 30, 2018
 
$
39.8
Schedule of Contingent Consideration
The following table provides a reconciliation of the beginning and ending balance of the AAC contingent liability for the three and nine months ended September 30, 2019:

(in millions)
 
AAC Contingent Liability
Balance at December 31, 2018
 
$
9.4

Change in fair value adjustment recorded in other (income) expense, net
 
5.4

Balance at March 31, 2019
 
14.8

Change in fair value adjustment recorded in other (income) expense, net
 
7.7

Balance at June 30, 2019
 
22.5

Change in fair value adjustment recorded in other (income) expense, net
 
(2.5
)
Balance at September 30, 2019
 
$
20.0



The following table provides a reconciliation of the beginning and ending balance of the AAC contingent liability for the three and nine months ended September 30, 2018:

(in millions)
 
AAC Contingent Liability
Balance at December 31, 2017
 
$
24.2

Change in fair value adjustment recorded in other (income) expense, net
 
(8.3
)
Balance at March 31, 2018
 
15.9

Change in fair value adjustment recorded in other (income) expense, net
 
(3.0
)
Balance at June 30, 2018
 
12.9

Change in fair value adjustment recorded in other (income) expense, net
 
0.3

Balance at September 30, 2018
 
$
13.2
v3.19.3
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Summary of the Numerators and Denominators Used in the Basic and Diluted Earnings Per Share Calculation
A summary of the numerators and denominators used in the basic and diluted earnings (loss) per share calculations for the reportable periods is as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions, except per share data)
2019
 
2018
 
2019
 
2018
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
5.1

 
$
1.4

 
$
(32.9
)
 
$
(25.0
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average number of shares outstanding – basic
16.10

 
15.85

 
16.04

 
15.82

Dilutive effect of stock-based awards
0.14

 
0.62

 
—

 
—

Weighted-average number of shares outstanding – diluted
16.24

 
16.47

 
16.04

 
15.82

 
 
 
 
 
 
 
 
Earnings (loss) per share:
 
 
 
 
 
 
 
Basic earnings (loss) per share
$
0.32

 
$
0.09

 
$
(2.05
)
 
$
(1.58
)
Diluted earnings (loss) per share
$
0.31

 
$
0.09

 
$
(2.05
)
 
$
(1.58
)
 
 
 
 
 
 
 
 
Antidilutive stock-based awards excluded from computation of diluted earnings per share ("EPS")
0.64

 
0.09

 
1.05

 
1.13

Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met
0.61

 
0.49

 
0.61

 
0.49
Schedule of Incentive Plan Shares Issued
In accordance with the Company's 2014 Omnibus Incentive Plan, as amended and restated as of March 8, 2017, shares of the Company's common stock were issued to plan participants whose Restricted Stock Units and/or Performance Condition Share Units vested during those periods. See the table below for information related to these transactions. Shares issued and withheld in the third quarters of 2019 and 2018 were not material:

(in millions)
2019
 
2018
Three months ended March 31,
 
 
 
     Shares issued
0.3

 
0.2

     Shares recovered for minimum tax withholding
(0.1
)
 
(0.1
)
     Net shares issued
0.2

 
0.1

 
 
 
 
Three months ended June 30,
 
 
 
     Shares issued
0.0

 
0.1

     Shares recovered for minimum tax withholding
0.0

 
0.0

     Net shares issued
0.0

 
0.1
v3.19.3
Accumulated Other Comprehensive Loss (AOCL) (Tables)
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss
The following table provides the components of AOCL at September 30, 2019 (amounts are shown net of their related income tax effect, if any):

(in millions)
 
Foreign currency translation adjustments
 
Retirement liabilities
 
Interest rate cap
 
AOCL
Balance at December 31, 2018
 
$
(30.3
)
 
$
(10.1
)
 
$
(0.3
)
 
$
(40.7
)
     Unrealized net gains (losses) arising during the period
 
2.4

 
0.0

 
0.0

 
2.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.1

 
0.1

Net current period other comprehensive income (loss)
 
2.4

 
0.0

 
0.1

 
2.5

Balance at March 31, 2019
 
(27.9
)
 
(10.1
)
 
(0.2
)
 
(38.2
)
     Unrealized net gains (losses) arising during the period
 
1.3

 
0.1

 
0.0

 
1.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.2

 
0.2

Net current period other comprehensive income (loss)
 
1.3

 
0.1

 
0.2

 
1.6

Balance at June 30, 2019
 
(26.6
)
 
(10.0
)
 
—

 
(36.6
)
     Unrealized net gains (losses) arising during the period
 
(2.2
)
 
—

 
(0.3
)
 
(2.5
)
Net current period other comprehensive income (loss)
 
(2.2
)
 
—

 
(0.3
)
 
(2.5
)
Balance at September 30, 2019
 
$
(28.8
)
 
$
(10.0
)
 
$
(0.3
)
 
$
(39.1
)
    
The following table provides the components of AOCL at September 30, 2018 (amounts are shown net of their related income tax effect, if any):

(in millions)
 
Foreign currency translation adjustments
 
Retirement liabilities
 
Interest rate cap
 
AOCL
Balance at December 31, 2017
 
$
(23.5
)
 
$
(9.3
)
 
$
(0.7
)
 
$
(33.5
)
     Unrealized net gains (losses) arising during the period
 
(0.2
)
 
—

 
0.0

 
(0.2
)
     Amounts reclassified from AOCL
 
—

 
(0.6
)
 
0.0

 
(0.6
)
Net current period other comprehensive income (loss)
 
(0.2
)
 
(0.6
)
 
0.0

 
(0.8
)
Balance at March 31, 2018
 
(23.7
)
 
(9.9
)
 
(0.7
)
 
(34.3
)
     Unrealized net gains (losses) arising during the period
 
(3.9
)
 
—

 
0.1

 
(3.8
)
Net current period other comprehensive income (loss)
 
(3.9
)
 
—

 
0.1

 
(3.8
)
Balance at June 30, 2018
 
(27.6
)
 
(9.9
)
 
(0.6
)
 
(38.1
)
     Unrealized net gains (losses) arising during the period
 
2.5

 
—

 
(0.1
)
 
2.4

     Amounts reclassified from AOCL
 
—

 
—

 
0.3

 
0.3

Net current period other comprehensive income (loss)
 
2.5

 
—

 
0.2

 
2.7

Balance at September 30, 2018
 
$
(25.1
)
 
$
(9.9
)
 
$
(0.4
)
 
$
(35.4
)
v3.19.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
The following tables present net sales, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, restructuring charges, net, integration and acquisition expenses and other similar charges including any severance costs, costs associated with warehouse and office openings or closings, consolidation, and relocation and other business optimization expenses, stock-based compensation expense, changes in the LIFO reserve, non-restructuring asset impairment charges, non-restructuring severance charges, non-restructuring pension charges, net, fair value adjustments related to contingent liabilities assumed in mergers and acquisitions and certain other adjustments), which is the metric management uses to assess operating performance of the segments, and certain other measures for each of the reportable segments and Corporate & Other for the periods presented:
    
(in millions)
Packaging
 
Facility Solutions
 
Print
 
Publishing
 
Total Reportable Segments
 
Corporate & Other
 
Total
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
871.4

 
$
307.9

 
$
523.0

 
$
190.1

 
$
1,892.4

 
$
32.1

 
$
1,924.5

Adjusted EBITDA
67.4

 
11.0

 
10.6

 
4.6

 
93.6

 
(48.6
)
 


Depreciation and amortization
4.6

 
1.8

 
2.1

 
0.0

 
8.5

 
4.8

 
13.3

Restructuring charges, net
5.8

 
6.1

 
4.3

 
(8.5
)
 
7.7

 
(0.1
)
 
7.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
899.3

 
$
330.3

 
$
668.2

 
$
258.5

 
$
2,156.3

 
$
36.2

 
$
2,192.5

Adjusted EBITDA
64.0

 
8.1

 
14.5

 
5.6

 
92.2

 
(39.5
)
 


Depreciation and amortization
4.5

 
1.6

 
2.0

 
0.2

 
8.3

 
4.8

 
13.1

Restructuring charges, net
2.5

 
1.9

 
0.9

 
0.0

 
5.3

 
0.1

 
5.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
2,598.3

 
$
918.1

 
$
1,605.5

 
$
603.7

 
$
5,725.6

 
$
98.6

 
$
5,824.2

Adjusted EBITDA
181.1

 
23.5

 
30.1

 
15.0

 
249.7

 
(141.0
)
 


Depreciation and amortization
13.8

 
5.3

 
6.3

 
0.4

 
25.8

 
13.7

 
39.5

Restructuring charges, net
8.5

 
7.3

 
6.2

 
(8.2
)
 
13.8

 
3.1

 
16.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
2,631.6

 
$
985.3

 
$
2,008.1

 
$
734.9

 
$
6,359.9

 
$
105.5

 
$
6,465.4

Adjusted EBITDA
182.0

 
19.8

 
47.6

 
17.2

 
266.6

 
(138.8
)
 

Depreciation and amortization
15.1

 
5.1

 
6.8

 
0.6

 
27.6

 
13.9

 
41.5

Restructuring charges, net
8.4

 
4.4

 
15.5

 
0.0

 
28.3

 
0.4

 
28.7
Reconciliation of Income Before Income Taxes to Total Adjusted EBITDA
The table below presents a reconciliation of income (loss) before income taxes as reflected in the Condensed Consolidated Statements of Operations to Adjusted EBITDA for the reportable segments:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Income (loss) before income taxes
$
12.7

 
$
4.9

 
$
(32.7
)
 
$
(26.1
)
Interest expense, net
8.9

 
11.0

 
30.5

 
30.5

Depreciation and amortization
13.3

 
13.1

 
39.5

 
41.5

Restructuring charges, net
7.6

 
5.4

 
16.9

 
28.7

Stock-based compensation
3.4

 
4.5

 
12.4

 
15.2

LIFO reserve (decrease) increase
(3.9
)
 
4.0

 
(1.0
)
 
18.4

Non-restructuring asset impairment charges
—

 
0.2

 
—

 
0.2

Non-restructuring severance charges
1.3

 
0.5

 
4.0

 
2.3

Non-restructuring pension charges, net
0.0

 
(0.1
)
 
6.6

 
(0.8
)
Integration and acquisition expenses
4.5

 
7.9

 
13.3

 
24.6

Fair value adjustment on TRA contingent liability
0.3

 
0.1

 
1.8

 
(0.3
)
Fair value adjustment on contingent consideration liability
(2.5
)
 
0.3

 
10.6

 
(11.0
)
Escheat audit contingent liability
(1.0
)
 
0.8

 
6.0

 
0.8

Other
0.4

 
0.1

 
0.8

 
3.8

Adjustment for Corporate & Other
48.6

 
39.5

 
141.0

 
138.8

Adjusted EBITDA for reportable segments
$
93.6

 
$
92.2

 
$
249.7

 
$
266.6
v3.19.3
Business and Summary of Significant Accounting Policies (Details)
$ in Millions
Sep. 30, 2019
USD ($)
distribution_center
Jan. 01, 2019
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Number of distribution centers | distribution_center 150  
Operating lease right-of-use assets $ 431.8  
Operating lease obligations $ 468.3  
Increase to retained earnings   $ 2.7
Accounting Standards Update 2016-02    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease right-of-use assets   428.0
Operating lease obligations   428.0
Retained Earnings    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Increase to retained earnings   2.7
Retained Earnings | Accounting Standards Update 2016-02    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Increase to retained earnings   $ 2.7
v3.19.3
Revenue Recognition - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Concentration Risk [Line Items]    
Performance obligation satisfaction period 12 months  
Equipment sales deposits, approximate holding period 90 days  
Bill-and-hold arrangements initial coverage period 90 days  
Estimated inventory returns recognized $ 602.6 $ 688.2
Number of reportable segments | segment 4  
Revenue from Contract with Customer | Geographic Concentration Risk | U.S.    
Concentration Risk [Line Items]    
Principal market concentration percent 90.00%  
Revenue from Contract with Customer | Geographic Concentration Risk | Canada    
Concentration Risk [Line Items]    
Principal market concentration percent 8.00%  
Revenue from Contract with Customer | Geographic Concentration Risk | Mexico    
Concentration Risk [Line Items]    
Principal market concentration percent 1.00%  
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606    
Concentration Risk [Line Items]    
Estimated inventory returns recognized $ 2.2 $ 2.5
Sales Channel, Directly to Consumer | Revenue from Contract with Customer    
Concentration Risk [Line Items]    
Principal market concentration percent 33.33%  
v3.19.3
Revenue Recognition - Schedule of Customer Contract Liabilities (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Change in Contract with Customer, Liability [Roll Forward]    
Beginning balance $ 17.7 $ 20.5
Payments received 35.2 41.1
Revenue recognized from beginning balance (17.7) (18.1)
Revenue recognized from current year receipts (22.4) (25.4)
Ending balance $ 12.8 $ 18.1
v3.19.3
Leases - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2019
USD ($)
distribution_center
Dec. 31, 2018
lease
Lessee, Lease, Description [Line Items]    
Number of failed sale-leaseback leases | lease   1
Number of distribution centers | distribution_center 150  
Number of leased distribution centers | distribution_center 140  
Real Estate    
Lessee, Lease, Description [Line Items]    
Finance and operating lease payments due $ 553.4  
Operating lease not yet commenced $ 21.0  
Commencement period 6 months  
Average lease term 6 years  
Real Estate | Minimum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 3 years  
Real Estate | Maximum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 7 years  
Delivery Equipment | Minimum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 3 years  
Delivery Equipment | Maximum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 8 years  
Non-Real Estate    
Lessee, Lease, Description [Line Items]    
Finance and operating lease payments due $ 78.8  
Non-Real Estate | Minimum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 3 years  
Non-Real Estate | Maximum    
Lessee, Lease, Description [Line Items]    
Term of lease contract 5 years  
v3.19.3
Leases - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Leases [Abstract]    
Short-term lease expense $ 1.7 $ 5.8
Operating lease expense:    
Operating lease cost 29.6 84.3
Finance lease expense:    
Amortization of right-of-use assets 2.7 7.6
Interest expense 0.6 1.6
Total finance lease expense 3.3 9.2
Total Lease Cost $ 34.6 $ 99.3
v3.19.3
Leases - Schedule of Supplemental Balance Sheet and Other Information (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Operating Leases:  
Operating lease right-of-use assets $ 431.8
Operating lease obligations - current 88.0
Operating lease obligations - non-current 380.3
Total operating lease obligations $ 468.3
Weighted-average remaining lease term in years 6 years 9 months 18 days
Weighted-average discount rate 4.60%
Finance Leases:  
Finance lease right-of-use assets $ 67.0
Finance lease obligations - current 9.5
Finance lease obligations - non-current 60.8
Total finance lease obligations $ 70.3
Weighted-average remaining lease term in years 8 years 3 months 18 days
Weighted-average discount rate 3.30%
v3.19.3
Leases - Schedule of Supplemental Cash Flow Information (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2019
USD ($)
Operating cash flows from operating leases  
Operating cash flows from operating leases $ 81.3
Finance Leases:  
Operating cash flows from finance leases 1.6
Financing cash flows from finance leases $ 6.8
v3.19.3
Leases - Schedule of Future Minimum Operating and Finance Lease Payments (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Finance Leases - Topic 842    
2019 (excluding the nine months ended September 30, 2019) $ 3.0  
2020 11.7  
2021 11.1  
2022 10.6  
2023 9.4  
2024 7.7  
Thereafter 27.4  
Total future minimum lease payments 80.9  
Amount representing interest (10.6)  
Total future minimum lease payments, net of interest 70.3  
Financing Obligation and Equipment Capital Leases    
2019   $ 9.3
2020   9.0
2021   8.3
2022   7.9
2023   6.8
Thereafter   23.0
Total future minimum lease payments, including interest   64.3
Amount representing interest   (11.6)
Total future minimum lease payments, net of interest   52.7
Operating Leases - Topic 842    
2019 (excluding the nine months ended September 30, 2019) 27.6  
2020 105.3  
2021 90.2  
2022 75.7  
2023 55.3  
2024 45.4  
Thereafter 151.8  
Total future minimum lease payments 551.3  
Amount representing interest (83.0)  
Total future minimum lease payments, net of interest $ 468.3  
Operating Leases - Topic 840    
Lease obligations - 2019   108.3
Lease obligations - 2020   98.3
Lease obligations - 2021   82.2
Lease obligations - 2022   69.3
Lease obligations - 2023   49.4
Lease obligations - thereafter   173.4
Lease obligations - total future minimum lease payments   580.9
Sublease income - 2019   (0.3)
Sublease income - 2020   (0.1)
Sublease income - 2021   0.0
Sublease income - 2022   0.0
Sublease income - 2023   0.0
Sublease income - thereafter   0.0
Sublease income - total future minimum lease payments   (0.4)
2019   108.0
2020   98.2
2021   82.2
2022   69.3
2023   49.4
Thereafter   173.4
Total future minimum lease payments, net of interest   $ 580.5
v3.19.3
Integration, Acquisition and Restructuring Charges - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]                    
Integration and restructuring charges including capital expenditures             $ 317.0      
Integration and restructuring charges, capital expenditures             113.0      
Restructuring charges, net $ 7.6     $ 5.4     16.9 $ 28.7    
Exit of Facility                    
Restructuring Cost and Reserve [Line Items]                    
Restructuring charges, net               10.4    
Veritiv Restructuring Plan                    
Restructuring Cost and Reserve [Line Items]                    
Assets held for sale 10.1           10.1      
Restructuring charges, net 7.6     4.8     16.9 18.5    
Gain (loss) on sale of facility               2.1    
Veritiv Restructuring Plan | Restructuring Costs, Excluding Non-Cash Items                    
Restructuring Cost and Reserve [Line Items]                    
Restructuring charges, net 7.5 $ 6.9 $ 2.6 4.4 $ 13.6 $ 2.6        
Payments for restructuring 5.0 3.5 4.1 7.1 9.2 3.1        
Restructuring liability 34.2 $ 31.7 $ 28.3 30.8 33.5 29.1 34.2 30.8 $ 29.8 $ 29.6
Exiting Brand Re-Distribution Business                    
Restructuring Cost and Reserve [Line Items]                    
Restructuring charges, net 5.4           5.4      
Print Segment Plan | Restructuring Costs, Excluding Non-Cash Items                    
Restructuring Cost and Reserve [Line Items]                    
Restructuring charges, net       0.6 0.3 9.3        
Payments for restructuring       2.6 3.3 0.7        
Restructuring liability       $ 3.6 $ 5.6 $ 8.6   $ 3.6   $ 0.0
Print | Print Segment Plan                    
Restructuring Cost and Reserve [Line Items]                    
Payments for restructuring 0.1           1.8      
Restructuring liability 0.2           0.2      
Print | Print Segment Plan | Restructuring Costs, Excluding Non-Cash Items                    
Restructuring Cost and Reserve [Line Items]                    
Restructuring charges, net                 $ 10.7  
Minimum                    
Restructuring Cost and Reserve [Line Items]                    
Integration and restructuring charges including capital expenditures expected costs 330.0           330.0      
Integration and restructuring charges, capital expenditures, expected cost             120.0      
Maximum                    
Restructuring Cost and Reserve [Line Items]                    
Integration and restructuring charges including capital expenditures expected costs $ 340.0           $ 340.0      
v3.19.3
Integration, Acquisition and Restructuring Charges - Summary of the Components of Integration Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Business Acquisition [Line Items]        
Integration and acquisition expenses $ 4.5 $ 7.9 $ 13.3 $ 24.6
UWW Holdings, Inc. XPEDX Merger        
Business Acquisition [Line Items]        
Integration management 2.7 4.4 8.1 13.3
Retention compensation 0.1 0.0 0.0 0.1
Information technology conversion costs 1.1 2.2 2.9 6.7
Legal, consulting and other professional fees 0.0 0.0 0.0 0.3
Other 0.4 0.9 1.6 2.4
All American Containers        
Business Acquisition [Line Items]        
Integration and acquisition expenses $ 0.2 $ 0.4 $ 0.7 $ 1.8
v3.19.3
Integration, Acquisition and Restructuring Charges - Summary of Cumulative Restructuring Charges (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended 42 Months Ended 63 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net $ 7.6     $ 5.4     $ 16.9 $ 28.7      
Veritiv Restructuring Plan                      
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net 7.6     4.8     16.9 $ 18.5      
Severance and Related Costs | Veritiv Restructuring Plan                      
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net 2.3 $ 3.2 $ 1.3 2.1 $ 0.3 $ 0.2 6.8   $ 3.3 $ 20.0 $ 30.1
Other Direct Costs | Veritiv Restructuring Plan                      
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net $ 5.2 $ 3.7 $ 1.3 $ 2.3 $ 13.3 $ 2.4 10.2   22.3 47.9 80.4
(Gain) Loss on Sale of Assets and Other (non-cash portion) | Veritiv Restructuring Plan                      
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net             (0.1)   (15.0) (22.4) (37.5)
Total | Veritiv Restructuring Plan                      
Restructuring Cost and Reserve [Line Items]                      
Restructuring charges, net             $ 16.9   $ 10.6 $ 45.5 $ 73.0
v3.19.3
Integration, Acquisition and Restructuring Charges - Summary of the Company's Restructuring Activity (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended 42 Months Ended 63 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Restructuring Reserve [Roll Forward]                      
Costs incurred $ 7.6     $ 5.4     $ 16.9 $ 28.7      
Veritiv Restructuring Plan                      
Restructuring Reserve [Roll Forward]                      
Costs incurred 7.6     4.8     16.9 18.5      
Severance and Related Costs                      
Restructuring Reserve [Roll Forward]                      
Restructuring reserve, ending balance       5.1       5.1      
Severance and Related Costs | Veritiv Restructuring Plan                      
Restructuring Reserve [Roll Forward]                      
Restructuring reserve, beginning balance 6.9 $ 5.0 $ 4.7 3.6 $ 3.6 $ 4.4 4.7 4.4 $ 4.4    
Costs incurred 2.3 3.2 1.3 2.1 0.3 0.2 6.8   3.3 $ 20.0 $ 30.1
Payments (1.5) (1.3) (1.0) (0.6) (0.3) (1.0)          
Restructuring reserve, ending balance 7.7 6.9 5.0   3.6 3.6 7.7   4.7 4.4 7.7
Other Direct Costs                      
Restructuring Reserve [Roll Forward]                      
Restructuring reserve, ending balance       25.7       25.7      
Other Direct Costs | Veritiv Restructuring Plan                      
Restructuring Reserve [Roll Forward]                      
Restructuring reserve, beginning balance 24.8 23.3 25.1 29.9 25.5 25.2 25.1 25.2 25.2    
Costs incurred 5.2 3.7 1.3 2.3 13.3 2.4 10.2   22.3 47.9 80.4
Payments (3.5) (2.2) (3.1) (6.5) (8.9) (2.1)          
Restructuring reserve, ending balance 26.5 24.8 23.3   29.9 25.5 26.5   25.1 25.2 26.5
Total | Veritiv Restructuring Plan                      
Restructuring Reserve [Roll Forward]                      
Restructuring reserve, beginning balance 31.7 28.3 29.8 33.5 29.1 29.6 29.8 29.6 29.6    
Costs incurred 7.5 6.9 2.6 4.4 13.6 2.6          
Payments (5.0) (3.5) (4.1) (7.1) (9.2) (3.1)          
Restructuring reserve, ending balance $ 34.2 $ 31.7 $ 28.3 $ 30.8 $ 33.5 $ 29.1 $ 34.2 $ 30.8 $ 29.8 $ 29.6 $ 34.2
v3.19.3
Integration, Acquisition and Restructuring Charges - Summary of Non-merger Related Restructuring Charges (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Restructuring Reserve [Roll Forward]            
Costs incurred $ 7.6 $ 5.4     $ 16.9 $ 28.7
Severance and Related Costs            
Restructuring Reserve [Roll Forward]            
Restructuring reserve, ending balance   5.1       5.1
Other Direct Costs            
Restructuring Reserve [Roll Forward]            
Restructuring reserve, ending balance   25.7       25.7
Print Segment Plan | Severance and Related Costs            
Restructuring Reserve [Roll Forward]            
Restructuring reserve, beginning balance   5.5 $ 8.5 $ 0.0   0.0
Costs incurred   0.4 0.0 9.2    
Payments   (2.3) (3.0) (0.7)    
Restructuring reserve, ending balance   3.6 5.5 8.5   3.6
Print Segment Plan | Other Direct Costs            
Restructuring Reserve [Roll Forward]            
Restructuring reserve, beginning balance   0.1 0.1 0.0   0.0
Costs incurred   0.2 0.3 0.1    
Payments   (0.3) (0.3) (0.0)    
Restructuring reserve, ending balance   0.0 0.1 0.1   0.0
Print Segment Plan | Total            
Restructuring Reserve [Roll Forward]            
Restructuring reserve, beginning balance   5.6 8.6 0.0   0.0
Costs incurred   0.6 0.3 9.3    
Payments   (2.6) (3.3) (0.7)    
Restructuring reserve, ending balance   $ 3.6 $ 5.6 $ 8.6   $ 3.6
v3.19.3
Debt and Other Obligations - Long-Term Debt Obligations (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Commercial card payable $ 9.9 $ 6.7
Finance and capital leases, respectively 70.3  
Capital lease obligations   38.2
Total debt 736.1 970.3
Less: current portion of debt (9.9) (6.7)
Long-term debt, net of current portion 726.2 963.6
Line of Credit | Asset-Based Lending Facility    
Debt Instrument [Line Items]    
Asset-Based Lending Facility (the ABL Facility) $ 665.4 $ 932.1
v3.19.3
Debt and Other Obligations - Narrative (Details) - USD ($)
Sep. 13, 2019
Sep. 30, 2019
Dec. 31, 2018
Line of Credit Facility [Line Items]      
Commercial card, maximum credit limit   $ 37,500,000  
Commercial card payable   $ 9,900,000 $ 6,700,000
Asset-Based Lending Facility      
Line of Credit Facility [Line Items]      
Minimum fixed coverage ratio   100.00%  
Line of Credit | Asset-Based Lending Facility      
Line of Credit Facility [Line Items]      
Remaining borrowing capacity   $ 354,100,000  
Outstanding letters of credit   12,100,000  
Commercial Card Program      
Line of Credit Facility [Line Items]      
Commercial card payable   $ 400,000 $ 0
Interest Rate Cap      
Line of Credit Facility [Line Items]      
Amount covered by interest rate cap $ 350,000,000.0    
Variable interest rate spread 2.75%    
Cost of interest rate cap contract $ 600,000    
v3.19.3
Debt and Other Obligations - Related Party Finance Obligations (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Obligations - other financing   $ 24.2
Less: current portion of financing obligations $ 0.0 (0.6)
Financing obligations, less current portion $ 0.0 $ 23.6
v3.19.3
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jan. 01, 2018
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Tax Contingency [Line Items]          
Income (loss) before income taxes   $ 12.7 $ 4.9 $ (32.7) $ (26.1)
Income tax expense (benefit)   $ 7.6 $ 3.5 $ 0.2 $ (1.1)
Effective tax rate   59.80% 71.40% (0.60%) 4.20%
Reclassification from accumulated other comprehensive income to retained earnings $ 0.0        
Retained Earnings          
Income Tax Contingency [Line Items]          
Reclassification from accumulated other comprehensive income to retained earnings 0.8        
AOCL          
Income Tax Contingency [Line Items]          
Reclassification from accumulated other comprehensive income to retained earnings [1] $ (0.8)        
[1] Accumulated other comprehensive loss.
v3.19.3
Related Party Transactions - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended
Jan. 31, 2019
Jan. 31, 2018
UWW Holdings, LLC | UWW Holdings, LLC | Tax Receivable Agreement    
Related Party Transaction [Line Items]    
Payments to UWWF for utilization of pre-merger net operating losses in federal and state tax returns $ 8.1 $ 10.1
v3.19.3
Related Party Transactions - Summarized Financial Impact of Transactions with Related Party (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Related Party Transaction [Line Items]          
Related party sales $ 5.7 $ 6.6 $ 17.3 $ 21.3  
Inventories 602.6   602.6   $ 688.2
Related party payable 6.5   6.5   9.3
Related party receivable 2.8   2.8   3.2
Georgia-Pacific          
Related Party Transaction [Line Items]          
Inventories 11.3   11.3   17.3
Related party payable 6.5   6.5   9.3
Related party receivable 2.8   2.8   $ 3.2
Georgia-Pacific | Sales          
Related Party Transaction [Line Items]          
Related party sales 5.7 6.6 17.3 21.3  
Georgia-Pacific | Cost of Products Sold          
Related Party Transaction [Line Items]          
Purchases of inventory recognized in cost of products sold $ 20.0 $ 39.3 $ 66.2 $ 117.2  
v3.19.3
Defined Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
U.S.        
Components of net periodic benefit cost (credit):        
Service cost $ 0.5 $ 0.5 $ 1.4 $ 1.5
Interest cost 0.5 0.6 1.6 1.9
Expected return on plan assets (0.9) (1.4) (2.6) (4.1)
Settlement loss (0.0) (0.0) (0.0) (0.0)
Amortization of net loss (0.1) 0.0 (0.0) 0.0
Total other components (0.5) (0.8) (1.0) (2.2)
Net periodic benefit cost (credit) 0.0 (0.3) 0.4 (0.7)
Canada        
Components of net periodic benefit cost (credit):        
Service cost 0.0 0.0 0.2 0.2
Interest cost 0.7 0.7 2.2 2.1
Expected return on plan assets (0.8) (0.9) (2.7) (2.9)
Settlement loss 0.0 0.1 0.0 0.1
Amortization of net loss 0.1 (0.0) 0.1 0.1
Total other components 0.0 (0.1) (0.4) (0.6)
Net periodic benefit cost (credit) $ 0.0 $ (0.1) $ (0.2) $ (0.4)
v3.19.3
Fair Value Measurements - Liabilities Disclosed at Fair Value (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
ABL Facility | Asset-Backed Lending Facility | Line of Credit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value $ 665.4 $ 932.1
ABL Facility | Asset-Backed Lending Facility | Line of Credit | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value 665.4 932.1
TRA contingent liability | UWW Holdings, Inc. XPEDX Merger    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value 32.9 38.9
TRA contingent liability | UWW Holdings, Inc. XPEDX Merger | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value 32.9 38.9
AAC contingent consideration | All American Containers    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value 20.0 9.4
AAC contingent consideration | All American Containers | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities disclosed at fair value $ 20.0 $ 9.4
v3.19.3
Fair Value Measurements - Narrative (Details)
Dec. 26, 2018
USD ($)
Jul. 01, 2014
USD ($)
Sep. 30, 2019
USD ($)
Aug. 31, 2017
USD ($)
Business Acquisition [Line Items]        
Current portion of contingent consideration     $ 20,000,000.0  
UWW Holdings, Inc. XPEDX Merger        
Business Acquisition [Line Items]        
Fair value of contingent liability associated with the tax receivable agreement   $ 59,400,000    
All American Containers        
Business Acquisition [Line Items]        
Percent of business acquired       100.00%
Earn Out Payment | All American Containers        
Business Acquisition [Line Items]        
Contingent liability, earn-out amount       $ 22,200,000
Contingent liability, earn-out payment high range       50,000,000.0
Contingent consideration annual installment payment       $ 25,000,000.0
Payment required after first anniversary of acquisition $ 2,500,000      
Measurement Input, Discount Rate | Level 3 | Contingent Liability | UWW Holdings, Inc. XPEDX Merger        
Business Acquisition [Line Items]        
Fair value discount rate     0.039  
v3.19.3
Fair Value Measurements - Contingent Consideration Rollforward (Details) - Level 3 - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Earn Out Payment | All American Containers            
Business Acquisition, Contingent Consideration [Line Items]            
Beginning balance   $ 14.8 $ 9.4 $ 12.9 $ 15.9 $ 24.2
Change in fair value adjustment recorded in other (income) expense, net     5.4     (8.3)
Ending balance     14.8 13.2 12.9 15.9
Fair Value, Recurring | Earn Out Payment | All American Containers            
Business Acquisition, Contingent Consideration [Line Items]            
Beginning balance $ 22.5          
Change in fair value adjustment recorded in other (income) expense, net (2.5) 7.7   0.3 (3.0)  
Ending balance 20.0 22.5        
Contingent Liability | UWW Holdings, Inc. XPEDX Merger            
Business Acquisition, Contingent Consideration [Line Items]            
Beginning balance   32.0 38.9   39.9 50.0
Change in fair value adjustment recorded in other (income) expense, net     0.9     (0.2)
Principal payment     (7.8)     (9.9)
Ending balance     $ 32.0     $ 39.9
Contingent Liability | Fair Value, Recurring | UWW Holdings, Inc. XPEDX Merger            
Business Acquisition, Contingent Consideration [Line Items]            
Beginning balance 32.6     39.7    
Change in fair value adjustment recorded in other (income) expense, net 0.3 0.6   0.1 (0.2)  
Ending balance $ 32.9 $ 32.6   $ 39.8 $ 39.7  
v3.19.3
Earnings (Loss) Per Share - Summary of the Numerators and Denominators Used in the Basic and Diluted Earnings Per Share Calculation (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Numerator:                
Net income (loss) $ 5.1 $ (11.3) $ (26.7) $ 1.4 $ (10.6) $ (15.8) $ (32.9) $ (25.0)
Denominator:                
Weighted-average shares outstanding, basic (in shares) 16,100     15,850     16,040 15,820
Dilutive effect of stock-based awards (in shares) 140     620     0 0
Weighted-average shares outstanding, diluted (in shares) 16,240     16,470     16,040 15,820
Earnings (loss) per share:                
Basic earnings (loss) per share (in dollars per share) $ 0.32     $ 0.09     $ (2.05) $ (1.58)
Diluted earnings (loss) per share (in dollars per share) $ 0.31     $ 0.09     $ (2.05) $ (1.58)
Antidilutive stock-based awards excluded from computation of diluted loss per share (EPS) (in shares) 640     90     1,050 1,130
Performance stock-based awards excluded from computation of diluted EPS because performance conditions had not been met (in shares) 610     490     610 490
v3.19.3
Earnings (Loss) Per Share - Schedule of Shares Issued (Details) - shares
shares in Millions
 3 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Earnings Per Share [Abstract]        
Shares issued (in shares) 0.0 0.3 0.1 0.2
Shares recovered for minimum tax withholding (in shares) (0.0) (0.1) (0.0) (0.1)
Net shares issued (in shares) 0.0 0.2 0.1 0.1
v3.19.3
Accumulated Other Comprehensive Loss (AOCL) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance $ 518.7 $ 523.6 $ 543.1 $ 528.2 $ 537.7 $ 549.7
Unrealized net gains (losses) arising during the period (2.5) 1.4 2.4 2.4 (3.8) (0.2)
Amounts reclassified from AOCL   0.2 0.1 0.3   (0.6)
Net current period other comprehensive income (loss) (2.5) 1.6 2.5 2.7 (3.8) (0.8)
Ending balance 524.6 518.7 523.6 536.7 528.2 537.7
AOCL            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance [1] (36.6) (38.2) (40.7) (38.1) (34.3) (33.5)
Ending balance [1] (39.1) (36.6) (38.2) (35.4) (38.1) (34.3)
Foreign currency translation adjustments            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (26.6) (27.9) (30.3) (27.6) (23.7) (23.5)
Unrealized net gains (losses) arising during the period (2.2) 1.3 2.4 2.5 (3.9) (0.2)
Amounts reclassified from AOCL   0.0 0.0 0.0   0.0
Net current period other comprehensive income (loss) (2.2) 1.3 2.4 2.5 (3.9) (0.2)
Ending balance (28.8) (26.6) (27.9) (25.1) (27.6) (23.7)
Retirement liabilities            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (10.0) (10.1) (10.1) (9.9) (9.9) (9.3)
Unrealized net gains (losses) arising during the period 0.0 0.1 0.0 0.0 0.0 0.0
Amounts reclassified from AOCL   0.0 0.0 0.0   (0.6)
Net current period other comprehensive income (loss) 0.0 0.1 0.0 0.0 0.0 (0.6)
Ending balance (10.0) (10.0) (10.1) (9.9) (9.9) (9.9)
Interest rate cap            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance 0.0 (0.2) (0.3) (0.6) (0.7) (0.7)
Unrealized net gains (losses) arising during the period (0.3) 0.0 0.0 (0.1) 0.1 0.0
Amounts reclassified from AOCL   0.2 0.1 0.3   (0.0)
Net current period other comprehensive income (loss) (0.3) 0.2 0.1 0.2 0.1 0.0
Ending balance $ (0.3) $ 0.0 $ (0.2) $ (0.4) $ (0.6) $ (0.7)
[1] Accumulated other comprehensive loss.
v3.19.3
Commitments and Contingencies (Details)
$ in Millions
 9 Months Ended 81 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2019
USD ($)
state
Jun. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Loss Contingencies [Line Items]        
Additional states joining escheat audit | state   7    
Pension plan withdrawal liability     $ 6.5  
Pension plan withdrawal liability, estimated payment period 20 years      
Unfavorable Regulatory Action        
Loss Contingencies [Line Items]        
Loss contingency $ 16.0 $ 16.0   $ 10.0
v3.19.3
Segment Information - Narrative (Details)
 9 Months Ended
Sep. 30, 2019
segment
Segment Reporting [Abstract]  
Number of reportable segments 4
v3.19.3
Segment Information - Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Segment Reporting Information [Line Items]        
Net sales $ 1,924.5 $ 2,192.5 $ 5,824.2 $ 6,465.4
Adjusted EBITDA
Depreciation and amortization 13.3 13.1 39.5 41.5
Restructuring charges, net 7.6 5.4 16.9 28.7
Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 1,892.4 2,156.3 5,725.6 6,359.9
Adjusted EBITDA 93.6 92.2 249.7 266.6
Depreciation and amortization 8.5 8.3 25.8 27.6
Restructuring charges, net 7.7 5.3 13.8 28.3
Corporate & Other        
Segment Reporting Information [Line Items]        
Net sales 32.1 36.2 98.6 105.5
Adjusted EBITDA (48.6) (39.5) (141.0) (138.8)
Depreciation and amortization 4.8 4.8 13.7 13.9
Restructuring charges, net (0.1) 0.1 3.1 0.4
Packaging | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 871.4 899.3 2,598.3 2,631.6
Adjusted EBITDA 67.4 64.0 181.1 182.0
Depreciation and amortization 4.6 4.5 13.8 15.1
Restructuring charges, net 5.8 2.5 8.5 8.4
Facility Solutions | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 307.9 330.3 918.1 985.3
Adjusted EBITDA 11.0 8.1 23.5 19.8
Depreciation and amortization 1.8 1.6 5.3 5.1
Restructuring charges, net 6.1 1.9 7.3 4.4
Print | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 523.0 668.2 1,605.5 2,008.1
Adjusted EBITDA 10.6 14.5 30.1 47.6
Depreciation and amortization 2.1 2.0 6.3 6.8
Restructuring charges, net 4.3 0.9 6.2 15.5
Publishing | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 190.1 258.5 603.7 734.9
Adjusted EBITDA 4.6 5.6 15.0 17.2
Depreciation and amortization 0.0 0.2 0.4 0.6
Restructuring charges, net $ (8.5) $ 0.0 $ (8.2) $ 0.0
v3.19.3
Segment Information - Reconciliation of Income Before Income Taxes to Total Adjusted EBITDA (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Segment Reporting Information [Line Items]        
Income (loss) before income taxes $ 12.7 $ 4.9 $ (32.7) $ (26.1)
Interest expense, net 8.9 11.0 30.5 30.5
Depreciation and amortization 13.3 13.1 39.5 41.5
Restructuring charges, net 7.6 5.4 16.9 28.7
Stock-based compensation 3.4 4.5 12.4 15.2
LIFO reserve (decrease) increase (3.9) 4.0 (1.0) 18.4
Non-restructuring asset impairment charges 0.0 0.2 0.0 0.2
Non-restructuring severance charges 1.3 0.5 4.0 2.3
Non-restructuring pension charges, net 0.0 (0.1) 6.6 (0.8)
Integration and acquisition expenses 4.5 7.9 13.3 24.6
Escheat audit contingent liability (1.0) 0.8 6.0 0.8
Other 0.4 0.1 0.8 3.8
Adjusted EBITDA for reportable segments
Corporate & Other        
Segment Reporting Information [Line Items]        
Depreciation and amortization 4.8 4.8 13.7 13.9
Restructuring charges, net (0.1) 0.1 3.1 0.4
Adjusted EBITDA for reportable segments (48.6) (39.5) (141.0) (138.8)
Operating Segments        
Segment Reporting Information [Line Items]        
Depreciation and amortization 8.5 8.3 25.8 27.6
Restructuring charges, net 7.7 5.3 13.8 28.3
Adjusted EBITDA for reportable segments 93.6 92.2 249.7 266.6
Tax Receivable Agreement        
Segment Reporting Information [Line Items]        
Fair value adjustments on contingent liability 0.3 0.1 1.8 (0.3)
All American Containers        
Segment Reporting Information [Line Items]        
Integration and acquisition expenses 0.2 0.4 0.7 1.8
Earn Out Payment | All American Containers        
Segment Reporting Information [Line Items]        
Fair value adjustments on contingent liability $ (2.5) $ 0.3 $ 10.6 $ (11.0)