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Equity
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Equity

9. Equity

Our equity as of December 31, 2018 and September 30, 2019, and changes during the three and nine months ended September 30, 2019, were as follows:

 

 

Common

 

 

Additional

Paid-in-

 

 

Treasury

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total RRD's

Stockholders'

 

 

Noncontrolling

 

 

Total

 

 

Stock

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Loss

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at December 31, 2018

$

0.9

 

 

$

3,404.0

 

 

$

(1,285.5

)

 

$

(2,225.7

)

 

$

(153.8

)

 

$

(260.1

)

 

$

14.7

 

 

$

(245.4

)

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

(8.8

)

 

 

 

 

 

 

(8.8

)

 

 

0.3

 

 

 

(8.5

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

1.4

 

 

 

0.2

 

 

 

1.6

 

Share-based compensation

 

 

 

 

 

3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.4

 

 

 

 

 

 

 

3.4

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(54.7

)

 

 

53.8

 

 

 

 

 

 

 

 

 

 

 

(0.9

)

 

 

 

 

 

 

(0.9

)

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

(2.1

)

Cumulative impact of adopting ASU 2016-02, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

2.6

 

 

 

 

 

 

 

2.6

 

 

 

 

 

 

 

2.6

 

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

(0.7

)

 

 

(0.7

)

Balance at March 31, 2019

$

0.9

 

 

$

3,352.7

 

 

$

(1,231.7

)

 

$

(2,234.0

)

 

$

(152.4

)

 

$

(264.5

)

 

$

14.5

 

 

$

(250.0

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(7.0

)

 

 

 

 

 

 

(7.0

)

 

 

(0.4

)

 

 

(7.4

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.4

)

 

 

(2.4

)

 

 

(0.1

)

 

 

(2.5

)

Share-based compensation

 

 

 

 

 

3.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.3

 

 

 

 

 

 

 

3.3

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(0.5

)

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

—

 

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.2

)

 

 

 

 

 

 

(2.2

)

 

 

 

 

 

 

(2.2

)

Spinoff adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

(12.0

)

 

 

 

 

 

 

(12.0

)

 

 

 

 

 

 

(12.0

)

Balance at June 30, 2019

$

0.9

 

 

$

3,355.5

 

 

$

(1,231.2

)

 

$

(2,255.2

)

 

$

(154.8

)

 

$

(284.8

)

 

$

14.0

 

 

$

(270.8

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

12.6

 

 

 

 

 

 

 

12.6

 

 

 

0.3

 

 

 

12.9

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19.1

)

 

 

(19.1

)

 

 

(0.4

)

 

 

(19.5

)

Share-based compensation

 

 

 

 

 

2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.6

 

 

 

 

 

 

 

2.6

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(0.8

)

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

—

 

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

(2.1

)

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

—

 

Balance at September 30, 2019

$

0.9

 

 

$

3,357.3

 

 

$

(1,230.4

)

 

$

(2,244.7

)

 

$

(173.9

)

 

$

(290.8

)

 

$

13.9

 

 

$

(276.9

)

On October 1, 2016, we completed the separation of LSC Communications, Inc. and Donnelley Financial Solutions, Inc. (“Spin Companies”) into two separate publicly-traded companies. The distribution of the Spin Companies was recorded as a reduction in Stockholder's Equity during the fourth quarter of 2016. During the second quarter of 2019, we identified an error in the accounting for the distribution of the Spin Companies. As a result, the error, which was determined by management to be immaterial to the previously issued Consolidated Financial Statements, has been corrected herein by increasing Accumulated Deficit by $12.0 million.

Stockholder Rights Plan

On August 28, 2019, our Board of Directors approved a Stockholder Rights Agreement (the “Rights Agreement”). Under the terms of the Rights Agreement, each share of our common stock is accompanied by one right; each right entitles the stockholder to purchase from the Company one one-thousandth of a newly issued share of Series A Junior Participating Preferred Stock at an exercise price of $12, subject to adjustment. 

Subject to certain exceptions, the rights become exercisable 10 business days following a public announcement that a person (the “Acquiring Person”) has acquired beneficial ownership of 10% (or 20% in certain circumstances ) or more of the outstanding shares of common stock of the Company (the “Stock Acquisition Date”). The rights will expire on August 28, 2020, unless redeemed, exchanged or terminated earlier by the Company. At any time until 10 business days following the Stock Acquisition Date, the Company may redeem the rights for $0.001 per right. 

In the event a person becomes an Acquiring Person, each holder of a right, other than the Acquiring Person, will have the right to receive common stock (or, in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the exercise price of the right.

In the event that we are acquired in a merger or other business combination as defined in the Rights Agreement, or 50% or more of our assets or earnings power is sold, each right entitles the holders to purchase common stock of the acquiring company having a value equal to two times the exercise price of the right.  

At any time after a person becomes an Acquiring Person and prior to the acquisition by any person or group of 50% or more of the outstanding common stock, the Board of Directors may exchange the rights (other than rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one share of common stock, or one one-thousandth of a share of Series A Preferred Stock (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges), per right, subject to adjustment. 

Our equity as of December 31, 2017 and September 30, 2018, and changes during three and nine months ended September 30, 2018, were as follows:

 

 

Common

 

 

Additional

Paid-in-

 

 

Treasury

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total RRD's

Stockholders'

 

 

Noncontrolling

 

 

Total

 

 

Stock

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Loss

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at December 31, 2017

$

0.9

 

 

$

3,444.0

 

 

$

(1,333.1

)

 

$

(2,225.7

)

 

$

(103.7

)

 

$

(217.6

)

 

$

14.7

 

 

$

(202.9

)

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

(9.6

)

 

 

 

 

 

 

(9.6

)

 

 

0.3

 

 

 

(9.3

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21.0

 

 

 

21.0

 

 

 

0.5

 

 

 

21.5

 

Share-based compensation

 

 

 

 

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.2

 

 

 

 

 

 

 

1.2

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(32.7

)

 

 

31.9

 

 

 

(0.1

)

 

 

 

 

 

 

(0.9

)

 

 

 

 

 

 

(0.9

)

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(9.8

)

 

 

 

 

 

 

(9.8

)

 

 

 

 

 

 

(9.8

)

Cumulative impact of adopting ASU 2014-09, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

12.9

 

 

 

 

 

 

 

12.9

 

 

 

 

 

 

 

12.9

 

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

(1.0

)

 

 

(1.0

)

Balance at March 31, 2018

$

0.9

 

 

$

3,412.5

 

 

$

(1,301.2

)

 

$

(2,232.3

)

 

$

(82.7

)

 

$

(202.8

)

 

$

14.5

 

 

$

(188.3

)

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

(13.0

)

 

 

 

 

 

 

(13.0

)

 

 

0.4

 

 

 

(12.6

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39.3

)

 

 

(39.3

)

 

 

(0.6

)

 

 

(39.9

)

Share-based compensation

 

 

 

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.0

 

 

 

 

 

 

 

3.0

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(4.5

)

 

 

4.5

 

 

 

0.1

 

 

 

 

 

 

 

0.1

 

 

 

 

 

 

 

0.1

 

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(9.8

)

 

 

 

 

 

 

(9.8

)

 

 

 

 

 

 

(9.8

)

Balance at June 30, 2018

$

0.9

 

 

$

3,411.0

 

 

$

(1,296.7

)

 

$

(2,255.0

)

 

$

(122.0

)

 

$

(261.8

)

 

$

14.3

 

 

$

(247.5

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

34.3

 

 

 

 

 

 

 

34.3

 

 

 

0.5

 

 

 

34.8

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6.4

)

 

 

(6.4

)

 

 

(0.4

)

 

 

(6.8

)

Share-based compensation

 

 

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.2

 

 

 

 

 

 

 

2.2

 

Issuance of share-based awards, net of withholdings and other

 

 

 

 

 

(0.9

)

 

 

0.9

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

—

 

Cumulative impact of adopting ASU 2018-02, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

22.1

 

 

 

(22.1

)

 

 

—

 

 

 

 

 

 

 

—

 

Cash dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.2

)

 

 

 

 

 

 

(2.2

)

 

 

 

 

 

 

(2.2

)

Balance at September 30, 2018

$

0.9

 

 

$

3,412.3

 

 

$

(1,295.8

)

 

$

(2,200.8

)

 

$

(150.5

)

 

$

(233.9

)

 

$

14.4

 

 

$

(219.5

)