LKSD LSC Communications Inc

Item 8.01 Other Events.

LSC Communications, Inc. (“LSC Communications” or the "Company") is filing this Current Report on Form 8-K ("Current Report") to recast certain financial information included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (the "2017 10-K"), which was filed with the Securities and Exchange Commission (the "SEC") on February 22, 2018, to reflect the Company’s new reportable segments and reporting units beginning with the third quarter of 2018 and the retrospective application of certain accounting standard updates that were adopted by the Company during the first quarter of 2018.

As previously disclosed, during the third quarter of 2018, the Company realigned the reportable segments and reporting units to reflect its evolution since its separation from R. R. Donnelley & Sons Company in 2016, as well as changes from recent acquisition and disposal activity.

The Company also adopted certain accounting standard updates that require retrospective application effective January 1, 2018. The Company adopted Accounting Standards Update 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” ("ASU 2017-07") and ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force" ("ASU 2016-18").

ASU 2017-07 is intended to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost in an entity's financial statements by requiring entities to disaggregate the service cost component from other components of net benefit cost and present it with other employee compensation costs.  All other components of net benefit cost will need to be presented elsewhere on the income statement outside of income from operations. The presentation aspect of ASU 2017-07 must be applied retrospectively and the capitalization requirement prospectively. The Company has presented the elements of net periodic benefit costs in the accompanying consolidated and combined statements of operations in accordance with ASU 2017-07.

ASU 2016-18 requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.  The standard does not provide a definition of restricted cash or restricted cash equivalents.  The standard requires a retrospective transition method to be applied to each period presented. This update was applied retrospectively in the accompanying consolidated and combined statements of cash flows.  

The information included in Exhibit 99.1 to this Current Report is presented in connection with the reporting changes described above and does not otherwise amend or restate the Company's audited consolidated financial statements that were included in its 2017 10-K. This Current Report does not reflect events occurring after the Company filed the 2017 10-K and does not modify or update the disclosures therein in any way, other than to reflect the reporting changes described above. Therefore, Exhibit 99.1 to this Current Report should be read in conjunction with the Company's other filings made with the SEC, including, and subsequent to the date of, the 2017 10-K.

The Company has revised the following portions of the 2017 10-K to reflect the retrospective revisions that have been made as a result of the reporting changes described above: