DFIN 2017 Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated) During the year ended December 31, 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables which were used in the calculation of the Company’s U.S. pension obligations. The new mortality tables increased the expected life of plan participants, extending the length of time that payments may be required and increasing the plans’ total expected benefit payments. During the years ended December 31, 2016, and December 31, 2017, the Company adopted updates to the Society of Actuaries RP-2014 mortality tables. The 2016 and 2017 mortality table updates both resulted in a partial reversal of the 2014 increases in the expected life of plan participants and benefit obligations. The Company made cash contributions of $2.1 million and $0.1 million to its pension and other postretirement benefit plans, respectively, during the year ended December 31, 2017. The Company expects to make cash contributions of approximately $2.3 million and $0.1 million to its pension and other postretirement benefit plans, respectively, in 2018. The pension plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of active plan participants. The components of the estimated net pension plan income for Donnelley Financial’s pension plans for the years ended December 31, 2017, 2016 and 2015 were as follows: Pension Benefits 2017 2016 2015 Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.6 $ 2.4 $ 147.3 Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16.0) (4.1) (210.7) Amortization of actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 0.7 36.4 Net periodic benefit income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3.3) $(1.0) $ (27.0) Income allocated to RRD affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 25.2 Net periodic benefit income, net of allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3.3) $(1.0) $ (1.8) Weighted average assumption used to calculate net periodic benefit expense: Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2% 3.7% 4.2% Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0% 7.3% 7.5% Reconciliation of funded status Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 Benefit obligation at beginning of year . . . . . . . . . . . . . $293.3 $ 3.2 $ 1.2 $— Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6 2.4 — — Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.9 (24.7) — (0.3) Plan transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 317.0 — 1.5 Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . — — 0.1 — Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16.9) (4.6) (0.1) — Benefit obligation at end of year . . . . . . . . . . . . . . . . . . $309.9 $293.3 $ 1.2 $ 1.2 Fair value of plan assets at beginning of year . . . . . . . . $235.8 $ — $— $— Actual return on assets . . . . . . . . . . . . . . . . . . . . . . . . . . 36.1 (9.6) — — Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 1.3 0.1 — Plan transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) 248.7 — — Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16.9) (4.6) (0.1) — Fair value of plan assets at end of year . . . . . . . . . . . . . $256.4 $235.8 $— $— Funded status at end of year . . . . . . . . . . . . . . . . . . . . . . $ (53.5) $ (57.5) $(1.2) $(1.2) F-17