Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of (Loss) Income Before Income Taxes

Income taxes have been based on the following components of (loss) income before income taxes for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
U.S.	$	(151.8	)	$	(56.4	)	$	(12.1	)
Foreign		115.7			84.7			87.6
Total	$	(36.1	)	$	28.3		$	75.5

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 were as follows:

	2019		2018			2017
Federal:
Current	$	10.4	$	15.8		$	60.9
Deferred		5.4		6.9			31.0
State:
Current		0.3		(5.1	)		0.2
Deferred		7.6		(7.4	)		(6.0	)
Foreign:
Current		24.4		24.5			26.4
Deferred		8.5		3.2			(3.8	)
Total	$	56.6	$	37.9		$	108.7

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:

	2019			2018			2017
Federal statutory tax rate		(21.0	%)		21.0	%		35.0	%
Change in valuation allowances		22.4			29.5			2.8
Interest limitation valuation allowance		74.7			84.6			—
State and local income taxes, net of U.S. federal income tax benefit		(20.2	)		(14.4	)		(2.9	)
Impairment charges		70.3			—			6.6
Foreign tax		14.2			16.4			4.2
Adjustment of uncertain tax positions and interest		(1.8	)		(19.2	)		(3.2	)
Foreign tax rate differential		(1.4	)		(13.1	)		(21.2	)
Impact of the Tax Act		—			19.4			146.2
Tax impact of net gain on sale of Donnelley Financial and LSC shares		1.3			—			(21.6	)
Tax impact on GILTI		14.8			15.3			—
Tax impact on sale of Print Logistics		—			(9.3	)		—
Other		3.5			3.7			(1.9	)
Effective income tax rate		156.8	%		133.9	%		144.0	%

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows:

	2019			2018
Deferred tax assets:
Pension and OPEB plan liabilities	$	38.9		$	43.9
Net operating losses and other tax carryforwards		255.2			280.0
Accrued liabilities		53.9			48.7
Foreign depreciation		30.6			36.4
Operating lease liabilities		48.7			—
Other		9.4			9.8
Total deferred tax assets		436.7			418.8
Valuation allowances		(237.5	)		(255.9	)
Net deferred tax assets	$	199.2		$	162.9
Deferred tax liabilities:
Accelerated depreciation	$	(70.3	)	$	(64.3	)
Other intangible assets		(9.4	)		(11.8	)
Inventories		(10.0	)		(5.8	)
Operating lease assets		(47.4	)		—
Other		(16.4	)		(18.9	)
Total deferred tax liabilities		(153.5	)		(100.8	)
Net deferred tax assets	$	45.7		$	62.1

Transactions Affecting Valuation Allowance On Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2019, 2018 and 2017 were as follows:

	2019			2018			2017
Balance, beginning of year	$	255.9		$	238.3		$	154.1
Current year expense-net		34.5			29.1			84.5
Write-offs		(50.1	)		(0.2	)		(6.8	)
Foreign exchange and other		(2.8	)		(11.3	)		6.5
Balance, end of year		237.5			255.9		$	238.3

Unrecognized Tax Benefits

Changes in unrecognized tax benefits at December 31, 2019, 2018 and 2017 were as follows:

	2019			2018			2017
Balance at beginning of year	$	25.0		$	30.9		$	41.9
Additions for tax positions of the current year		0.1			0.2			0.2
Reductions for tax positions of prior years		—			(2.8	)		(9.0	)
Settlements during the year		(0.4	)		(0.1	)		(0.1	)
Lapses of applicable statutes of limitations		(1.6	)		(3.2	)		(2.1	)
Balance at end of year	$	23.1		$	25.0		$	30.9