DFIN 2017 Annual Report

2016 compared to 2015 Net cash used in investing activities was $29.3 million for the year ended December 31, 2016 compared to $37.1 million for the year ended December 31, 2015. Capital expenditures were $26.2 million during the year ended December 31, 2016, a decrease of $0.9 million as compared to the same period of 2015. Net cash used in investing activities for the year ended December 31, 2016 also included $3.5 million used for the purchase of investments compared to $10.0 million used to purchase an equity investment for the year ended December 31, 2015. Cash Flows Used For Financing Activities 2017 compared to 2016 Net cash used in financing activities for the year ended December 31, 2017 was $45.7 million compared to $60.0 million for the year ended December 31, 2016. The decrease in net cash used in financing activities reflected $133.0 million in payments on long-term debt, partially offset by a $68.0 million Separation-related payment from RRD and $18.8 million of proceeds from the issuance of common stock. Net cash used in financing activities for the year ended December 31, 2016 reflected $340.1 million in net transfers to RRD and its affiliates in connection with the Separation and $50.0 million in payments on long-term debt, offset by $348.2 million of proceeds from the issuance of long-term debt. 2016 compared to 2015 Net cash used in financing activities for the year ended December 31, 2016 was $60.0 million compared to $94.8 million for the year ended December 31, 2015. The decrease in net cash used in financing activities reflected $348.2 million of proceeds from the issuance of long-term debt, offset by $50.0 million in payments on long-term debt and a $284.1 million increase in net transfers to RRD and its affiliates in connection with the Separation. Contractual Cash Obligations and Other Commitments and Contingencies The following table quantifies the Company’s future contractual obligations as of December 31, 2017: Payments Due In Total 2018 2019 2020 2021 2022 Thereafter (in millions) Debt (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $470.0 $ — $ — $ 2.5 $10.0 $10.0 $447.5 Interest due on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209.8 32.5 32.5 32.5 32.2 31.8 48.3 Operating leases (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119.3 31.7 24.3 16.2 11.9 9.8 25.4 Outsourced services (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.1 27.6 2.9 1.6 1.4 0.6 — Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.5 6.7 6.5 1.6 1.8 2.8 12.1 Incentive compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.8 17.8 — — — — — Multi-employer pension plan withdrawal obligations . . . . . . . . . . 6.1 0.4 0.4 0.4 0.4 0.4 4.1 Pension and other postretirement benefits plan contributions (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 2.4 1.4 — — — — Other (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.8 9.0 0.9 0.9 — — — Total as of December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . $903.2 $128.1 $68.9 $55.7 $57.7 $55.4 $537.4 (a) Excludes unamortized debt issuance costs of $10.3 million and a discount of $1.4 million which do not represent contractual commitments with a fixed amount or maturity date. (b) Operating leases include obligations to landlords. (c) Includes information technology, professional, maintenance and other outsourced services. (d) Includes estimated pension and other postretirement benefits plan contributions for 2018 and 2019 and does not include the obligations for subsequent periods, as the Company is unable to reasonably estimate the ultimate amounts. (e) Other includes purchases of property, plant and equipment of $5.3 million, commercial agreement obligations of $2.7 million, employee restructuring-related severance payments of $1.3 million and miscellaneous other obligations. As a result of the Tax Act, the Company recorded a one-time transition tax expense of $14.2 million during the fourth quarter of 2017. The Company will make an election to pay the transition tax liability in installments over eight years. Consequently, $13.1 million of this liability has been recorded as noncurrent taxes payable in the Company’s consolidated balance sheet at December 31, 2017. 42