XML 59 R37.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Earnings (Loss) from Continuing Operations Before Income Taxes

Income taxes have been based on the following components of earnings (loss) from continuing operations before income taxes for the years ended December 31, 2018, 2017 and 2016:

	2018			2017			2016
U.S.	$	(56.4	)	$	(12.1	)	$	(617.9	)
Foreign		84.7			87.6			120.7
Total	$	28.3		$	75.5		$	(497.2	)

Components of Income Tax Expense (Benefit) from Continuing Operations

The components of income tax expense (benefit) from continuing operations for the years ended December 31, 2018, 2017 and 2016 were as follows:

	2018			2017			2016
Federal:
Current	$	15.8		$	60.9		$	(7.3	)
Deferred		6.9			31.0			(51.7	)
State:
Current		(5.1	)		0.2			(6.0	)
Deferred		(7.4	)		(6.0	)		12.5
Foreign:
Current		24.5			26.4			34.4
Deferred		3.2			(3.8	)		5.8
Total	$	37.9		$	108.7		$	(12.3	)

Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate

The following table outlines the reconciliation of differences between the Federal statutory tax rate and our effective income tax rate:

	2018			2017			2016
Federal statutory tax rate		21.0	%		35.0	%		35.0	%
Change in valuation allowances		29.5			2.8			(7.1	)
Interest limitation valuation allowance		84.6			—			—
State and local income taxes, net of U.S. federal income tax benefit		(14.4	)		(2.9	)		—
Impairment charges		—			6.6			(32.3	)
Foreign tax		16.4			4.2			(1.2	)
Adjustment of uncertain tax positions and interest		(19.2	)		(3.2	)		0.5
Reorganization		—			—			3.9
Foreign tax rate differential		(13.1	)		(21.2	)		3.0
Impact of the Tax Act		19.4			146.2			—
Tax impact of net gain on sale of Donnelley Financial and LSC shares		—			(21.6	)		—
Tax impact on GILTI		15.3			—			—
Tax impact on sale of Print Logistics		(9.3	)		—			—
Other		3.7			(1.9	)		0.7
Effective income tax rate		133.9	%		144.0	%		2.5	%

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows:

	2018			2017
Deferred tax assets:
Pension and OPEB plan liabilities	$	43.9		$	58.8
Net operating losses and other tax carryforwards		280.0			255.1
Accrued liabilities		48.7			51.5
Foreign depreciation		36.4			19.4
Other		9.8			16.5
Total deferred tax assets		418.8			401.3
Valuation allowances		(255.9	)		(238.3	)
Net deferred tax assets	$	162.9		$	163.0

Deferred tax liabilities:
Accelerated depreciation	$	(64.3	)	$	(45.8	)
Other intangible assets		(11.8	)		(20.0	)
Inventories		(5.8	)		(7.3	)
Other		(18.9	)		(14.0	)
Total deferred tax liabilities		(100.8	)		(87.1	)

Net deferred tax assets	$	62.1		$	75.9

Transactions Affecting Valuation Allowance On Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2018, 2017 and 2016 were as follows:

	2018			2017			2016
Balance, beginning of year	$	238.3		$	154.1		$	130.8
Current year expense-net		29.1			84.5			35.2
Write-offs		(0.2	)		(6.8	)		(1.0	)
Foreign exchange and other		(11.3	)		6.5			(10.9	)
Balance, end of year		255.9			238.3		$	154.1

Unrecognized Tax Benefits

Changes in unrecognized tax benefits at December 31, 2018, 2017 and 2016 were as follows:

	2018			2017			2016
Balance at beginning of year	$	30.9		$	41.9		$	51.0
Additions for tax positions of the current year		0.2			0.2			0.6
Reductions for tax positions of prior years		(2.8	)		(9.0	)		(1.5	)
Settlements during the year		(0.1	)		(0.1	)		(1.8	)
Lapses of applicable statutes of limitations		(3.2	)		(2.1	)		(6.4	)
Balance at end of year	$	25.0		$	30.9		$	41.9