XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Revenue Recognition Revenue Recognition (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2018
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition The Company recognizes its products and services revenue based on when the transfer of control passes to the customer or when the service is completed and accepted by the customer. The effects of the adjustments to the consolidated balance sheet as of December 31, 2017, for the modified retrospective adoption of Topic 606, were as follows:
| December 31, 2017 As Reported |  | Topic 606 Adjustments |  | Opening Balance at January 1, 2018
Prepaid expenses and other current assets | $ | 45.1 |  |  | $ | 2.3 |  |  | $ | 47.4 |
Other long-term assets | 119.3 |  |  | 2.0 |  |  | 121.3 |
Deferred income taxes | 41.9 |  |  | 1.1 |  |  | 43.0 |
Accumulated deficit | (162.9 | ) |  | 3.2 |  |  | (159.7 | )
The adoption of Topic 606 did not have a material effect on the consolidated financial statements. In adopting Topic 606, the timing of recognition changed for certain variable consideration paid to customers and costs to obtain contracts with customers. Revenue Disaggregation The following table provides information about disaggregated revenue by the Company’s operating segments and major products and services offerings for the years ended December 31, 2018, 2017 and 2016:
| United States Print and Related Services |  | International |  | Total
Year ended December 31, 2018 |  |  |  |  |
Catalog, publications, retail inserts, books and directories | $ | 2,391.1 |  |  | $ | 337.6 |  |  | $ | 2,728.7 |
Direct mail and other printed products | 605.3 |  |  | 30.5 |  |  | 635.8 |
Other | 27.4 |  |  | 0.4 |  |  | 27.8 |
Total Products | 3,023.8 |  |  | 368.5 |  |  | 3,392.3 |
Logistics services | 429.0 |  |  | 18.6 |  |  | 447.6 |
Imaging, marketing services and other services | 353.8 |  |  | — |  |  | 353.8 |
Total Services | 782.8 |  |  | 18.6 |  |  | 801.4 |
Total Net Sales | $ | 3,806.6 |  |  | $ | 387.1 |  |  | $ | 4,193.7 |
Year ended December 31, 2017 |  |  |  |  |
Catalog, publications, retail inserts, books and directories | $ | 2,485.9 |  |  | $ | 338.8 |  |  | $ | 2,824.7 |
Direct mail and other printed products | 614.4 |  |  | 32.4 |  |  | 646.8 |
Other | 56.6 |  |  | 0.9 |  |  | 57.5 |
Total Products | 3,156.9 |  |  | 372.1 |  |  | 3,529.0 |
Logistics services | 398.9 |  |  | 19.2 |  |  | 418.1 |
Imaging, marketing services and other services | 184.3 |  |  | — |  |  | 184.3 |
Total Services | 583.2 |  |  | 19.2 |  |  | 602.4 |
Total Net Sales | $ | 3,740.1 |  |  | $ | 391.3 |  |  | $ | 4,131.4 |
Year ended December 31, 2016 |  |  |  |  |
Catalog, publications, retail inserts, books and directories | $ | 2,662.6 |  |  | $ | 351.7 |  |  | $ | 3,014.3 |
Direct mail and other printed products | 616.6 |  |  | 29.6 |  |  | 646.2 |
Other | 55.9 |  |  | 0.7 |  |  | 56.6 |
Total Products | 3,335.1 |  |  | 382.0 |  |  | 3,717.1 |
Logistics services | 406.8 |  |  | 20.5 |  |  | 427.3 |
Imaging, marketing services and other services | 185.1 |  |  | — |  |  | 185.1 |
Total Services | 591.9 |  |  | 20.5 |  |  | 612.4 |
Total Net Sales | $ | 3,927.0 |  |  | $ | 402.5 |  |  | $ | 4,329.5 |
Nature of Products and Services The products offering is predominantly comprised of the Company’s print operations which includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products and global paper procurement. The Company considers its logistic operations as services, which include the delivery of printed material. The Services offering also includes revenues related to the Company’s imaging operations, which include digital content management, photography, color services, page production, marketing services, media planning and placement, facilities management and medical services. Performance Obligations At contract inception, the Company assesses the products and services promised in its contracts with customers and identifies performance obligations for each promise to transfer to the customer a product or service that is distinct. To identify the performance obligations, the Company considers the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company determined that the following distinct products and services represent separate performance obligations: •Pre-Press Services •Print •Other Services For Pre-Press and Other Services, the Company recognizes revenue at point-in-time upon completion of the performed service and acceptance by the customer. The Company considers transfer of control to occur once the service is performed as the Company has right to payment and the customer has legal title and risk and reward of ownership. The Company recognizes its Print revenues upon transfer of title and the passage of risk of loss, which is point-in-time upon shipment to the customer, and when there is a reasonable assurance as to collectability. Revenues related to the Company’s logistics operations, which includes the delivery of printed material, are included in the Print performance obligation and are also recognized at point-in-time as services are completed. Under agreements with certain customers, products may be stored by the Company for future delivery. In these situations, the Company may receive warehouse management fees for the services it provides. Revenue from warehouse management fees was immaterial for the years ended December 31, 2018, 2017 and 2016. Certain revenues earned by the Company require judgment to determine if revenue should be recorded gross as principal or net of related costs as an agent. Billings for third-party shipping and handling costs, primarily in the Company’s logistics operations, and out-of-pocket expenses are recorded gross in net sales and cost of sales in the consolidated statements of operations. Many of the Company’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Company and sold to customers. No revenue is recognized for customer-supplied paper. Revenues for the Company-supplied paper are recognized on a gross basis. In some cases, the Company will print items that are mailed to consumers and bill the customer for postage. In these cases, the Company is acting as an agent and billings are recorded on a net basis in net sales. Significant Payment Terms Payment terms and conditions for contracts with customers vary. The Company typically offers standard terms of net 30 days. It is not the Company’s standard business practice to offer extended payment terms longer than one year. The Company may offer cash discounts or prepayment and extended terms depending on certain facts and circumstances. As such, when the timing of the Company’s delivery of products and services differs from the timing of payment, the Company will record either a contract asset or a contract liability. Variable Consideration When evaluating the transaction price, the Company analyzes on a contract by contract basis all applicable variable considerations and non-cash consideration and also performs a constraint analysis. The nature of the Company’s contracts give rise to variable consideration, including, volume rebates, credits, discounts, and other similar items that generally decrease the transaction price. These variable amounts generally are credited to the customer, based on achieving certain levels of sales activity, when contracts are signed, or making payments within specific terms. Product returns are not significant because the products are customized; however, the Company accrues for the estimated amount of customer allowances at the time of sale based on historical experience and known trends. When the transaction price requires allocation to multiple performance obligations, the Company uses the estimated stand-alone selling prices using the adjusted market assessment approach. Costs to Obtain Contracts In accordance with Topic 606, the Company capitalizes certain sales incentives of the sales compensation packages for costs that are directly attributed to being awarded a customer contract or renewal and would not have been incurred had the contract not been obtained. The Company also defers certain contract acquisition costs paid to the customer at contract inception. Costs to obtain contracts with a duration of less than one year are expensed as incurred. For all contract costs with contracts over one year, the Company amortizes the costs to obtain contracts on a straight-line basis over the estimated life of the contract and reviews quarterly for impairment. At January 1, 2018, the Company had $23.5 million in contract costs for contracts that were not completed as of that date. For the year ended December 31, 2018, the Company incurred additional contract costs of $7.5 million, amortized $9.3 million, and consequently, the balance of contract costs were $21.7 million as of December 31, 2018. Practical Expedients The Company has elected to apply the following practical expedients allowed under Topic 606:
• | For certain performance obligations related to print contracts, the Company has elected not to disclose the value of unsatisfied performance obligations for the following: (1) contracts that have an original expected length of one year or less; (2) contracts where revenue is recognized as invoiced; or (3) contracts with variable consideration related to unsatisfied performance obligations. The Company had approximately $469.7 million in volume commitments in contracts that extend beyond one year as of December 31, 2018. The Company expects to recognize approximately 38% of these volume commitments in contracts as revenue by the end of 2019, an additional 32% by the end of 2021, and the balance thereafter.
• | The Company expenses costs to obtain contracts as incurred when the contract duration is less than one year.
• | The transaction amount is not adjusted for a significant financing component as the period between transfer of the products or services and payment is less than one year.
• | The Company accounts for shipping and handling activities, which includes postage, that occur after control of the related products or services transfers to the customer as fulfillment activities and are therefore recognized at time of shipping.
• | The Company excludes from its transaction price any amounts collected from customers for sales taxes.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration