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Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers | The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. | January 1, 2018; early adoption date is no earlier than December 15, 2016 | The Company is currently evaluating the alternative methods of adoption (full retrospective or modified retrospective), and the effect on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. | |||
ASU 2015-11, Simplifying the Measurement of Inventory | The standard requires companies to measure inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This ASU will not apply to inventories measured by either the last-in first-out method or retail inventory method. | January 1, 2017 | The Company is currently evaluating the impact the ASU may have on its first-in first-out based inventory, which is approximately 13% of the Company's inventory balance as of March 31, 2016. The Company plans to adopt this ASU on January 1, 2017. | |||
ASU 2016-02, Leases (Topic 842) | The standard requires lessees to put most leases on their balance sheet, but recognize expenses in their statement of operations in a manner similar to current accounting guidance. The new guidance also eliminates the current guidance related to real estate specific provisions. | January 1, 2019; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2019. | |||
ASU 2016-09, Compensation-Stock Compensation (Topic 718) | The standard is issued as part of the Financial Accounting Standards Board's simplification initiative. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including income tax consequences, award classification as either equity or liabilities, and classification on the statement of cash flows. | January 1, 2017; early adoption is permitted | The Company adopted this ASU on January 1, 2016. The adoption did not materially impact the financial statements or related disclosures. |
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Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Integration management | $ | 1.8 | $ | — | |||
Retention compensation | 1.1 | 3.4 | |||||
Information technology conversion costs | 1.1 | 2.1 | |||||
Rebranding | 0.7 | 0.8 | |||||
Legal, consulting and other professional fees | 0.5 | 2.9 | |||||
Other | 1.0 | 0.8 | |||||
Total integration expenses | $ | 6.2 | $ | 10.0 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | |||||||
Costs incurred | 0.7 | 0.3 | 0.7 | 1.7 | |||||||||||
Payments | (0.9 | ) | (0.4 | ) | — | (1.3 | ) | ||||||||
Other adjustments | — | — | (0.7 | ) | (0.7 | ) | |||||||||
Balance at March 31, 2016 | $ | 1.5 | $ | 0.3 | $ | — | $ | 1.8 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2014 | $ | 3.7 | $ | 0.2 | $ | 3.9 | |||||
Costs incurred | 1.9 | 1.5 | 3.4 | ||||||||
Payments | (2.7 | ) | (0.4 | ) | (3.1 | ) | |||||
Balance at March 31, 2015 | $ | 2.9 | $ | 1.3 | $ | 4.2 |
|
(in millions) | March 31, 2016 | December 31, 2015 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 744.7 | $ | 795.5 | |||
Equipment capital lease obligations (1) | 6.9 | 7.8 | |||||
Total debt | 751.6 | 803.3 | |||||
Less: current portion of long-term debt | (2.6 | ) | (2.8 | ) | |||
Long-term debt, net of current maturities | $ | 749.0 | $ | 800.5 |
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Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Income (loss) before income taxes | $ | 7.5 | $ | (2.1 | ) | ||
Income tax expense | $ | 4.2 | $ | 0.1 | |||
Effective tax rate | 56.0 | % | (4.8 | )% |
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Three Months Ended March 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 9.0 | $ | 9.0 | ||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | $ | 56.3 | $ | 69.5 |
(in millions) | March 31, 2016 | December 31, 2015 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 24.9 | $ | 25.2 | ||||
Related party payable to Georgia-Pacific | $ | 10.7 | $ | 10.7 | ||||
Related party receivable from Georgia-Pacific | $ | 4.5 | $ | 3.9 |
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Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.4 | $ | 0.1 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.9 | 0.8 | 0.8 | 0.8 | |||||||||||
Expected return on plan assets | (1.3 | ) | (0.9 | ) | (1.4 | ) | (0.9 | ) | |||||||
Amortization of net loss | — | 0.1 | — | — | |||||||||||
Net periodic benefit cost (credit) | $ | 0.0 | $ | 0.1 | $ | (0.2 | ) | $ | 0.0 |
|
(in millions) | Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense (income), net | 1.8 | |||
Balance at March 31, 2016 | $ | 64.8 |
|
(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2015 | $ | (27.1 | ) | $ | (7.4 | ) | $ | (0.5 | ) | $ | (35.0 | ) | ||||
Unrealized net gains (losses) arising during the year | 3.8 | — | (0.3 | ) | 3.5 | |||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 3.8 | 0.1 | (0.3 | ) | 3.6 | |||||||||||
Balance at March 31, 2016 | $ | (23.3 | ) | $ | (7.3 | ) | $ | (0.8 | ) | $ | (31.4 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | AOCL | |||||||||
Balance at December 31, 2014 | $ | (14.7 | ) | $ | (7.4 | ) | $ | (22.1 | ) | |||
Unrealized net losses arising during the year | (6.6 | ) | — | (6.6 | ) | |||||||
Net current period other comprehensive loss | (6.6 | ) | — | (6.6 | ) | |||||||
Balance at March 31, 2015 | $ | (21.3 | ) | $ | (7.4 | ) | $ | (28.7 | ) |
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(in millions) | Print | Publishing | Packaging | Facility Solutions | Corporate & Other | Total | |||||||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||||||||
Net sales | $ | 759.1 | $ | 262.3 | $ | 671.5 | $ | 301.0 | $ | 25.9 | $ | 2,019.8 | |||||||||||
Adjusted EBITDA | 16.0 | 4.0 | 46.7 | 7.4 | (39.2 | ) | 34.9 | ||||||||||||||||
Depreciation and amortization | 3.2 | 0.9 | 3.1 | 1.5 | 4.8 | 13.5 | |||||||||||||||||
Restructuring charges | 0.9 | — | 0.3 | 0.3 | 0.2 | 1.7 | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net sales | 820.7 | 309.5 | 675.2 | 309.1 | 23.4 | 2,137.9 | |||||||||||||||||
Adjusted EBITDA | 15.5 | 6.5 | 45.7 | 6.8 | (46.1 | ) | 28.4 | ||||||||||||||||
Depreciation and amortization | 3.4 | 0.5 | 3.9 | 1.8 | 3.9 | 13.5 | |||||||||||||||||
Restructuring charges | 0.9 | — | 0.8 | 0.9 | 0.8 | 3.4 |
Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Income (loss) before income taxes | $ | 7.5 | $ | (2.1 | ) | ||
Interest expense, net | 6.5 | 6.4 | |||||
Depreciation and amortization | 13.5 | 13.5 | |||||
Restructuring charges | 1.7 | 3.4 | |||||
Stock-based compensation | 2.0 | 1.0 | |||||
LIFO income | (5.3 | ) | (5.2 | ) | |||
Non-restructuring severance charges | 0.8 | 0.4 | |||||
Integration expenses | 6.2 | 10.0 | |||||
Fair value adjustments on TRA contingent liability | 1.8 | 1.3 | |||||
Other | 0.2 | (0.3 | ) | ||||
Adjusted EBITDA | $ | 34.9 | $ | 28.4 |
|
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers | The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. | January 1, 2018; early adoption date is no earlier than December 15, 2016 | The Company is currently evaluating the alternative methods of adoption (full retrospective or modified retrospective), and the effect on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. | |||
ASU 2015-11, Simplifying the Measurement of Inventory | The standard requires companies to measure inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This ASU will not apply to inventories measured by either the last-in first-out method or retail inventory method. | January 1, 2017 | The Company is currently evaluating the impact the ASU may have on its first-in first-out based inventory, which is approximately 13% of the Company's inventory balance as of March 31, 2016. The Company plans to adopt this ASU on January 1, 2017. | |||
ASU 2016-02, Leases (Topic 842) | The standard requires lessees to put most leases on their balance sheet, but recognize expenses in their statement of operations in a manner similar to current accounting guidance. The new guidance also eliminates the current guidance related to real estate specific provisions. | January 1, 2019; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2019. | |||
ASU 2016-09, Compensation-Stock Compensation (Topic 718) | The standard is issued as part of the Financial Accounting Standards Board's simplification initiative. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including income tax consequences, award classification as either equity or liabilities, and classification on the statement of cash flows. | January 1, 2017; early adoption is permitted | The Company adopted this ASU on January 1, 2016. The adoption did not materially impact the financial statements or related disclosures. |
|
Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Integration management | $ | 1.8 | $ | — | |||
Retention compensation | 1.1 | 3.4 | |||||
Information technology conversion costs | 1.1 | 2.1 | |||||
Rebranding | 0.7 | 0.8 | |||||
Legal, consulting and other professional fees | 0.5 | 2.9 | |||||
Other | 1.0 | 0.8 | |||||
Total integration expenses | $ | 6.2 | $ | 10.0 |
(in millions) | Severance and Related Costs | Other Direct Costs | Non-Cash Items | Total | |||||||||||
Balance at December 31, 2015 | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | |||||||
Costs incurred | 0.7 | 0.3 | 0.7 | 1.7 | |||||||||||
Payments | (0.9 | ) | (0.4 | ) | — | (1.3 | ) | ||||||||
Other adjustments | — | — | (0.7 | ) | (0.7 | ) | |||||||||
Balance at March 31, 2016 | $ | 1.5 | $ | 0.3 | $ | — | $ | 1.8 |
(in millions) | Severance and Related Costs | Other Direct Costs | Total | ||||||||
Balance at December 31, 2014 | $ | 3.7 | $ | 0.2 | $ | 3.9 | |||||
Costs incurred | 1.9 | 1.5 | 3.4 | ||||||||
Payments | (2.7 | ) | (0.4 | ) | (3.1 | ) | |||||
Balance at March 31, 2015 | $ | 2.9 | $ | 1.3 | $ | 4.2 |
|
(in millions) | March 31, 2016 | December 31, 2015 | |||||
Asset-Based Lending Facility (the "ABL Facility") | $ | 744.7 | $ | 795.5 | |||
Equipment capital lease obligations (1) | 6.9 | 7.8 | |||||
Total debt | 751.6 | 803.3 | |||||
Less: current portion of long-term debt | (2.6 | ) | (2.8 | ) | |||
Long-term debt, net of current maturities | $ | 749.0 | $ | 800.5 |
|
Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Income (loss) before income taxes | $ | 7.5 | $ | (2.1 | ) | ||
Income tax expense | $ | 4.2 | $ | 0.1 | |||
Effective tax rate | 56.0 | % | (4.8 | )% |
|
Three Months Ended March 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Sales to Georgia-Pacific, reflected in net sales | $ | 9.0 | $ | 9.0 | ||||
Purchases of inventory from Georgia-Pacific, recognized in cost of products sold | $ | 56.3 | $ | 69.5 |
(in millions) | March 31, 2016 | December 31, 2015 | ||||||
Inventories purchased from Georgia-Pacific that remained on Veritiv's balance sheet | $ | 24.9 | $ | 25.2 | ||||
Related party payable to Georgia-Pacific | $ | 10.7 | $ | 10.7 | ||||
Related party receivable from Georgia-Pacific | $ | 4.5 | $ | 3.9 |
|
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||||
(in millions) | U.S. | Canada | U.S. | Canada | |||||||||||
Components of net periodic benefit cost (credit): | |||||||||||||||
Service cost | $ | 0.4 | $ | 0.1 | $ | 0.4 | $ | 0.1 | |||||||
Interest cost | 0.9 | 0.8 | 0.8 | 0.8 | |||||||||||
Expected return on plan assets | (1.3 | ) | (0.9 | ) | (1.4 | ) | (0.9 | ) | |||||||
Amortization of net loss | — | 0.1 | — | — | |||||||||||
Net periodic benefit cost (credit) | $ | 0.0 | $ | 0.1 | $ | (0.2 | ) | $ | 0.0 |
|
(in millions) | Contingent Liability | |||
Balance at December 31, 2015 | $ | 63.0 | ||
Change in fair value adjustment recorded in other expense (income), net | 1.8 | |||
Balance at March 31, 2016 | $ | 64.8 |
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(in millions) | Foreign currency translation adjustments | Retirement liabilities | Interest rate swap | AOCL | ||||||||||||
Balance at December 31, 2015 | $ | (27.1 | ) | $ | (7.4 | ) | $ | (0.5 | ) | $ | (35.0 | ) | ||||
Unrealized net gains (losses) arising during the year | 3.8 | — | (0.3 | ) | 3.5 | |||||||||||
Amounts reclassified from AOCL | — | 0.1 | — | 0.1 | ||||||||||||
Net current period other comprehensive income (loss) | 3.8 | 0.1 | (0.3 | ) | 3.6 | |||||||||||
Balance at March 31, 2016 | $ | (23.3 | ) | $ | (7.3 | ) | $ | (0.8 | ) | $ | (31.4 | ) |
(in millions) | Foreign currency translation adjustments | Retirement liabilities | AOCL | |||||||||
Balance at December 31, 2014 | $ | (14.7 | ) | $ | (7.4 | ) | $ | (22.1 | ) | |||
Unrealized net losses arising during the year | (6.6 | ) | — | (6.6 | ) | |||||||
Net current period other comprehensive loss | (6.6 | ) | — | (6.6 | ) | |||||||
Balance at March 31, 2015 | $ | (21.3 | ) | $ | (7.4 | ) | $ | (28.7 | ) |
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(in millions) | Print | Publishing | Packaging | Facility Solutions | Corporate & Other | Total | |||||||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||||||||
Net sales | $ | 759.1 | $ | 262.3 | $ | 671.5 | $ | 301.0 | $ | 25.9 | $ | 2,019.8 | |||||||||||
Adjusted EBITDA | 16.0 | 4.0 | 46.7 | 7.4 | (39.2 | ) | 34.9 | ||||||||||||||||
Depreciation and amortization | 3.2 | 0.9 | 3.1 | 1.5 | 4.8 | 13.5 | |||||||||||||||||
Restructuring charges | 0.9 | — | 0.3 | 0.3 | 0.2 | 1.7 | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net sales | 820.7 | 309.5 | 675.2 | 309.1 | 23.4 | 2,137.9 | |||||||||||||||||
Adjusted EBITDA | 15.5 | 6.5 | 45.7 | 6.8 | (46.1 | ) | 28.4 | ||||||||||||||||
Depreciation and amortization | 3.4 | 0.5 | 3.9 | 1.8 | 3.9 | 13.5 | |||||||||||||||||
Restructuring charges | 0.9 | — | 0.8 | 0.9 | 0.8 | 3.4 |
Three Months Ended March 31, | |||||||
(in millions) | 2016 | 2015 | |||||
Income (loss) before income taxes | $ | 7.5 | $ | (2.1 | ) | ||
Interest expense, net | 6.5 | 6.4 | |||||
Depreciation and amortization | 13.5 | 13.5 | |||||
Restructuring charges | 1.7 | 3.4 | |||||
Stock-based compensation | 2.0 | 1.0 | |||||
LIFO income | (5.3 | ) | (5.2 | ) | |||
Non-restructuring severance charges | 0.8 | 0.4 | |||||
Integration expenses | 6.2 | 10.0 | |||||
Fair value adjustments on TRA contingent liability | 1.8 | 1.3 | |||||
Other | 0.2 | (0.3 | ) | ||||
Adjusted EBITDA | $ | 34.9 | $ | 28.4 |
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