Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2018

Components of Net Pension and Postretirement Benefits (Income) Expense and Total (Income) Expense

The components of the net periodic benefit (income) expense and total (income) expense were as follows:

	Pension Benefits									OPEB
	2018			2017			2016			2018			2017			2016
Service cost	$	0.7		$	0.7		$	1.0		$	(3.7	)	$	1.3		$	3.8
Interest cost		31.3			31.6			105.7			9.4			11.1			11.7
Expected return on plan assets		(50.3	)		(50.3	)		(177.5	)		(13.9	)		(13.5	)		(13.8	)
Amortization of prior service credit		—			—			—			(3.3	)		(2.8	)		(12.7	)
Amortization of actuarial loss (gain)		7.9			7.3			26.1			(0.6	)		(0.1	)		0.1
Settlements and curtailments		1.9			1.6			98.4			—			—			(19.5	)
Attributable to DFS and LSC		—			—			(43.3	)		—			—			—
Net periodic benefit (income) expense related to continuing operations	$	(8.5	)	$	(9.1	)	$	10.4		$	(12.1	)	$	(4.0	)	$	(30.4	)
Weighted average assumption used to calculate net periodic benefit expense:
Discount rate		3.4	%		3.8	%		4.3	%		3.5	%		4.0	%		4.2	%
Expected return on plan assets		5.5	%		5.9	%		6.8	%		6.8	%		6.8	%		7.3	%

Reconciliation of Benefit Obligation, Plan Assets and Funded Status of Plans

We adopted ASU No. 2017-07 “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, with retrospective adoption, during the first quarter of 2018. In accordance with Topic 715, benefit service cost is recorded in cost of sales and selling, general and administrative expenses. The other components, which include interest cost, expected return on plan assets, net amortization and settlements, are recorded in net investment and other income within the Consolidated Statements of Operations. Previously, all pension and postretirement benefits expense (income) was recorded in cost of sales and selling, general and administrative expenses. See Note 18, New Accounting Pronouncements, for further discussion and impact of adoption.

	Pension Benefits						OPEB
	2018			2017			2018			2017
Benefit obligation at beginning of year	$	1,044.8		$	974.7		$	342.4		$	345.0
Service cost		0.7			0.7			(3.7	)		1.3
Interest cost		31.3			31.6			9.4			11.1
Plan participants' contributions		—			—			10.1			9.0
Medicare reimbursements		—			—			6.4			5.0
Actuarial (gain) loss		(64.3	)		53.9			(19.7	)		3.0
Plan amendments and other		0.7			—			(32.6	)		—
Settlements		(8.5	)		(5.9	)		—			—
Foreign currency translation		(26.5	)		34.4			(1.3	)		2.8
Benefits paid		(45.2	)		(44.6	)		(33.9	)		(34.8	)
Benefit obligation at end of year	$	933.0		$	1,044.8		$	277.1		$	342.4
Fair value of plan assets at beginning of year	$	979.3		$	875.4		$	228.6		$	210.3
Actual (loss) return on assets		(31.7	)		106.0			(9.5	)		31.3
Settlements		(8.7	)		(6.3	)		—			—
Employer contributions		10.7			8.6			7.2			7.8
Medicare reimbursements		—			—			6.4			5.0
Plan participants' contributions		—			—			10.1			9.0
Separation of Donnelley Financial and LSC		—			5.8			—			—
Foreign currency translation		(25.6	)		34.4			—			—
Benefits paid		(45.2	)		(44.6	)		(33.9	)		(34.8	)
Fair value of plan assets at end of year	$	878.8		$	979.3		$	208.9		$	228.6
Total net pension and OPEB liability recognized as of December 31	$	(54.2	)	$	(65.5	)	$	(68.2	)	$	(113.8	)

Amounts Recognized on Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2018 and 2017 were as follows:

	Pension Benefits						OPEB
	2018			2017			2018			2017
Prepaid pension cost (included in other noncurrent assets)	$	46.4		$	39.9		$	—		$	—
Accrued benefit cost (included in accrued liabilities)		(2.7	)		(2.7	)		(0.4	)		(0.6	)
Pension liabilities		(97.9	)		(102.7	)		—			—
OPEB plan liabilities		—			—			(67.8	)		(113.2	)
Net liabilities recognized in the Consolidated Balance Sheets - Continuing Operations	$	(54.2	)	$	(65.5	)	$	(68.2	)	$	(113.8	)

Amounts in Accumulated Other Comprehensive Loss

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, at December 31, 2018 and 2017 were as follows:

	Pension Benefits						OPEB
	2018			2017			2018		2017
Accumulated other comprehensive (loss) income
Net actuarial (loss) gain	$	(294.5	)	$	(286.7	)	$	31.7	$	33.6
Net prior service credit		(0.7	)		—			56.1		30.4
Total	$	(295.2	)	$	(286.7	)	$	87.8	$	64.0

Amounts Recognized in Other Comprehensive Income (Loss)

The pre-tax amounts recognized in other comprehensive loss in 2018 as components of net periodic benefit costs were as follows:

	Pension Benefits			OPEB
Amortization of:
Net actuarial loss (gain)	$	7.9		$	(0.6	)
Net prior service credit		—			(3.3	)
Amounts arising during the period:
Net actuarial loss		(17.7	)		(1.8	)
Net prior service credit		(0.7	)		30.7
Settlements		1.9			—
Foreign currency gain (loss)		0.1			(2.0	)
Other		—			0.8
Total	$	(8.5	)	$	23.8

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2019 are shown below:

	Pension Benefits		OPEB
Amortization of:
Net actuarial loss (gain)	$	6.0	$	(1.7	)
Net prior service credit		0.1		(5.4	)
Total	$	6.1	$	(7.1	)

Weighted Average Assumptions Used to Determine Benefit Obligation

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

	Pension Benefits						OPEB
	2018			2017			2018			2017
Discount rate		4.0	%		3.4	%		4.2	%		3.5	%
Health care cost trend:
Current
Pre-Age 65		—			—			6.5	%		6.3	%
Post-Age 65		—			—			6.5	%		6.3	%
Ultimate		—			—			4.5	%		4.5	%

Summary of Projected Benefit Obligations in Excess of Plan Assets

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2018 and 2017:

	Pension Benefits
	2018		2017
Projected benefit obligation	$	722.8	$	797.4
Fair value of plan assets		622.3		692.0

Accumulated Benefit Obligations in Excess of Plan Assets

The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2018 and 2017:

	Pension Benefits
	2018		2017
Accumulated benefit obligation	$	711.8	$	784.6
Fair value of plan assets		622.3		692.0

Expected Benefit Payments

Benefit payments are expected to be paid as follows:

	Pension Benefits		OPEB-Gross		Estimated Subsidy Reimbursements
2019	$	45.0	$	25.5		1.5
2020		46.4		25.2		1.2
2021		48.1		24.8		1.2
2022		49.0		24.0		1.2
2023		50.3		23.6		1.2
2024-2028		264.6		110.9		5.8

Pension Plans, Defined Benefit

Allocation of Plan Assets

The fair values of our pension plan assets at December 31, 2018 and 2017, by asset category were as follows:

	December 31, 2018						December 31, 2017
Asset Category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	16.1	$	11.9	$	4.2	$	14.3	$	11.5	$	2.8
Equity		0.1		—		0.1		125.0		124.9		0.1
Fixed income		219.4		—		219.4		246.7		0.7		246.0
Other		1.0		0.2		0.8		2.1		—		2.1
Subtotal	$	236.6	$	12.1	$	224.5	$	388.1	$	137.1	$	251.0
Plan assets measured at NAV
Equity funds	$	324.7					$	279.7
Fixed income		274.0						268.7
Hedge funds and other		31.2						6.1
Real estate		12.3						36.7
Total plan assets measured at NAV	$	642.2					$	591.2
Total	$	878.8					$	979.3

Other Postretirement Benefit Plans, Defined Benefit

Allocation of Plan Assets

The fair values of our OPEB plan assets at December 31, 2018 and 2017, by asset category were as follows:

	December 31, 2018						December 31, 2017
Asset Category	Total		Level 1		Level 2		Total		Level 2
Cash and cash equivalents	$	36.6	$	—	$	36.6	$	30.7	$	30.7
Other		0.2		0.2		—		—		—
Subtotal	$	36.8	$	0.2	$	36.6	$	30.7	$	30.7
Investments measured at NAV
Equity funds	$	124.8					$	166.3
Fixed income funds		47.3						31.6
Total investments measured at NAV	$	172.1					$	197.9
Total	$	208.9					$	228.6