DFIN 2017 Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated) In connection with the offering of the Notes, the Company entered into a registration rights agreement, dated as of September 30, 2016 (the “Registration Rights Agreement”), pursuant to which the Company agreed to file a registration statement with the SEC with respect to an offer to exchange the Notes for registered notes. In certain circumstances, the Company may be required to file a shelf registration statement with the SEC registering the resale of the Notes by the holders thereof, in lieu of an exchange offer to such holders. On March 10, 2017, the Company filed a Registration Statement on Form S-4 (as amended, the “Exchange Offer Registration Statement”) to offer to exchange the Notes for registered notes which have terms identical in all material respects to the Notes except that the registered notes are not subject to transfer restrictions or registration rights. The Exchange Offer Registration Statement was declared effective by the SEC on March 22, 2017. An exchange offer for the Notes was launched on March 22, 2017 and settled on April 25, 2017, resulting in the exchange of $299.9 million aggregate principal amount of outstanding Notes for registered notes. The Company’s debt as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 8.25% senior notes due October 15, 2024 . . . . . . . . . . . . . . . . . . . . . $300.0 $300.0 Term Loan Credit Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168.6 298.3 Borrowings under the Revolving Facility . . . . . . . . . . . . . . . . . . . . . — — Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10.3) (11.3) Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458.3 587.0 Less: current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $458.3 $587.0 The fair value of the senior notes, which was determined using the market approach based upon interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company’s senior notes was $321.5 million and $307.1 million at December 31, 2017 and 2016, respectively. The weighted average interest rate on borrowings under the Revolving Facility was 4.4% at December 31, 2017. As of December 31, 2017, the Company had $4.5 million in outstanding letters of credit and bank guarantees, of which none reduced to the availability under the Revolving Facility. At December 31, 2017, the future maturities of debt were as follows: Amount 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0 2022 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447.5 Total (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $470.0 (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. The following table summarizes interest expense included in the Consolidated and Combined Statements of Operations: 2017 2016 2015 Interest incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43.5 $12.2 $ 1.1 Less: interest capitalized as property, plant and equipment . . . . . . . . . . . . . . . . . . (0.6) (0.5) — Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42.9 $11.7 $ 1.1 Interest paid was $40.0 million, $4.8 million and $1.1 million in 2017, 2016 and 2015, respectively. F-26