Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ACCO BRANDS CORP | |
Entity Central Index Key | 712,034 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 109,550,610 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 118.3 | $ 42.9 |
Accounts receivable, net | 295.1 | 391 |
Inventories | 287.3 | 210 |
Other current assets | 41 | 26.8 |
Total current assets | 741.7 | 670.7 |
Total property, plant and equipment | 622.6 | 528 |
Less: accumulated depreciation | (340.1) | (329.6) |
Property, plant and equipment, net | 282.5 | 198.4 |
Deferred income taxes | 123.6 | 27.3 |
Goodwill | 697.4 | 587.1 |
Identifiable intangibles, net | 834.8 | 565.7 |
Other non-current assets | 18.1 | 15.3 |
Total assets | 2,698.1 | 2,064.5 |
Current liabilities: | ||
Notes payable | 0 | 63.7 |
Current portion of long-term debt | 19.4 | 4.8 |
Accounts payable | 176.2 | 135.1 |
Accrued compensation | 36.3 | 42.8 |
Accrued customer program liabilities | 91 | 94 |
Accrued interest | 7.7 | 1.3 |
Other current liabilities | 80.9 | 64.7 |
Total current liabilities | 411.5 | 406.4 |
Long-term debt, net | 1,002.7 | 627.7 |
Deferred income taxes | 225.6 | 146.7 |
Pension and post-retirement benefit obligations | 259 | 98 |
Other non-current liabilities | 82.1 | 77 |
Total liabilities | 1,980.9 | 1,355.8 |
Stockholders' equity: | ||
Common stock | 1.1 | 1.1 |
Treasury stock | (26.2) | (17) |
Paid-in capital | 2,018.8 | 2,015.7 |
Accumulated other comprehensive loss | (409.3) | (419.4) |
Accumulated deficit | (867.2) | (871.7) |
Total stockholders' equity | 717.2 | 708.7 |
Total liabilities and stockholders' equity | $ 2,698.1 | $ 2,064.5 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Net sales | $ 359.8 | $ 278.1 | |
Cost of products sold | 249 | 195.7 | |
Gross profit | 110.8 | 82.4 | |
Operating costs and expenses: | |||
Advertising, selling, general and administrative expenses | 92 | 71.2 | |
Amortization of intangibles | 8 | 4.7 | |
Restructuring charges | 1.5 | 0 | |
Total operating costs and expenses | 101.5 | 75.9 | |
Operating income | [1] | 9.3 | 6.5 |
Non-operating expense (income): | |||
Interest expense | 9.8 | 10.7 | |
Interest income | (1.3) | (1.4) | |
Equity in earnings of joint-venture | 0 | (1.3) | |
Other expense, net | 0.7 | 1.1 | |
Income (loss) before income tax | 0.1 | (2.6) | |
Income tax benefit | (3.5) | (7.4) | |
Net income | $ 3.6 | $ 4.8 | |
Basic income per share: | |||
Basic income per share | $ 0.03 | $ 0.05 | |
Diluted income per share: | |||
Diluted income per share | $ 0.03 | $ 0.04 | |
Weighted average number of shares outstanding: | |||
Basic | 108.3 | 106.1 | |
Diluted | 112.4 | 108.2 | |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3.6 | $ 4.8 |
Other comprehensive income (loss), net of tax: | ||
Unrealized loss on derivative instruments, net of tax benefit of $0.7 and $1.2, respectively | (1.9) | (2.5) |
Foreign currency translation adjustments | 12.5 | 27.4 |
Recognition of deferred pension and other post-retirement items, net of tax expense (benefit) of $0.1 and $(0.9), respectively | (0.5) | 2.4 |
Other comprehensive income, net of tax | 10.1 | 27.3 |
Comprehensive income | $ 13.7 | $ 32.1 |
Consolidated Statements Of Com5
Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) Consolidated Statements of comprehensive Income (Loss) Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized loss on derivative instruments, tax benefit | $ 0.7 | $ 1.2 |
Recognition of deferred pension and other post-retirement items, tax expense (benefit) | $ 0.1 | $ (0.9) |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net income | $ 3.6 | $ 4.8 |
Amortization of inventory step-up | 0.9 | 0 |
Gain on disposal of assets | 0 | 0.1 |
Depreciation | 9 | 7.8 |
Amortization of debt issuance costs | 1.4 | 0.7 |
Amortization of intangibles | 8 | 4.7 |
Stock-based compensation | 2.4 | 3.3 |
Equity in earnings of joint-venture, net of dividends received | 0 | (0.9) |
Changes in balance sheet items: | ||
Accounts receivable | 165.3 | 153 |
Inventories | (31.2) | (53) |
Other assets | (0.8) | (9.2) |
Accounts payable | (4.3) | 2.5 |
Accrued expenses and other liabilities | (73.4) | (49.1) |
Accrued income taxes | (15.5) | (12.2) |
Net cash provided by operating activities | 65.4 | 52.5 |
Investing activities | ||
Additions to property, plant and equipment | (5.2) | (3.9) |
Proceeds from the disposition of assets | 0.1 | 0 |
Cost of acquisitions, net of cash acquired | (292.6) | 0 |
Net cash used by investing activities | (297.7) | (3.9) |
Financing activities | ||
Proceeds from long-term borrowings | 412 | 0 |
Repayments of long-term debt | (94.4) | 0 |
Payments for debt issuance costs | (3.4) | 0 |
Payments related to tax withholding for stock-based compensation | (9.2) | (5) |
Proceeds from the exercise of stock options | 1.4 | 0.3 |
Net cash provided (used) by financing activities | 306.4 | (4.7) |
Effect of foreign exchange rate changes on cash and cash equivalents | 1.3 | 3.1 |
Net increase in cash and cash equivalents | 75.4 | 47 |
Cash and cash equivalents | ||
Beginning of the period | 42.9 | 55.4 |
End of the period | $ 118.3 | $ 102.4 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation As used in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 , the terms "ACCO Brands," "ACCO," the "Company," "we," "us," and "our" refer to ACCO Brands Corporation and its consolidated subsidiaries. The management of ACCO Brands Corporation is responsible for the accuracy and internal consistency of the preparation of the condensed consolidated financial statements and notes contained in this Quarterly Report on Form 10-Q. The condensed consolidated interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Although the Company believes the disclosures are adequate to make the information presented not misleading, certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") have been condensed or omitted pursuant to those rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The Condensed Consolidated Balance Sheet as of March 31, 2017 , the related Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2017 and 2016 and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 are unaudited. The December 31, 2016 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all annual disclosures required by GAAP. The above referenced financial statements included herein were prepared by management on the same basis as the Company's audited consolidated financial statements for the year ended December 31, 2016 and reflect all adjustments (consisting solely of normal recurring items unless otherwise noted) which are, in the opinion of management, necessary for the fair presentation of results of operations and cash flows for the interim periods ended March 31, 2017 and 2016 , and the financial position of the Company as of March 31, 2017 . Interim results may not be indicative of results for a full year. On January 31, 2017, the Company completed the acquisition (the "Esselte Acquisition") of Esselte Group Holdings AB ("Esselte"). Accordingly, the results of Esselte are included in the Company's condensed consolidated financial statements and are reported in all three of the Company's segments, from February 1, 2017 forward. See " Note 3. Acquisition " for details on the Esselte Acquisition. On May 2, 2016, the Company completed the acquisition of Australia Stationery Industries, Inc. (the "PA Acquisition"), which indirectly owned the 50% of the Pelikan Artline joint-venture and the issued capital stock of Pelikan Artline Pty Limited (collectively, "Pelikan Artline") that was not already owned by the Company. Prior to the PA Acquisition, the Pelikan Artline joint-venture was accounted for using the equity method. From the date of the PA Acquisition, May 2, 2016, the results of the Pelikan Artline joint-venture are included in the Company's condensed consolidated financial statements and are reported in the ACCO Brands International segment. Accordingly, we no longer report any joint-venture income. Effective in the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which impacted its determination of its business segments for financial reporting purposes. As a result, the Company no longer reports the results of its Computer Products Group as a separate segment. Prior year amounts included herein have been restated to conform to the current year presentation. See " Note 15. Information on Business Segments " for details on the realigned segments. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost." The standard requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount of net benefit cost that is included in the income statement or capitalized in assets, by line item. The standard requires employers to report the service cost component in the same line item(s) as other compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs from prior periods, and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The standard also allows only the service cost component to be eligible for capitalization when applicable. The guidance requires application on a retrospective basis for the presentation of the service cost component and the other components of net periodic pension cost and net periodic post-retirement benefit cost in the income statement and on a prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic post-retirement benefit in assets. ASU No. 2017-07 is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted as of the beginning of an annual period for which interim financial statements have not been issued. The Company will adopt ASU 2017-07 at the beginning of its 2018 fiscal year. The adoption of ASU No. 2017-07 is not expected to have a material effect on the Company's net income, but it is expected to have a material effect on its operating income. If the Company uses the practical expedient that permits an employer to use the amounts disclosed in its pension and other retiree benefits footnote, included in our Annual Report on Form 10-K for the year ended December 31, 2016 , for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements, the Company's operating income would be reduced by approximately $8 million for 2016. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This new standard will require the recognition, on the balance sheet, of most leases as lease assets (right-of-use assets) and lease liabilities by lessees for those leases classified as operating leases under current GAAP. This new standard also includes increased disclosures to meet the objective of enabling users of financial statements to understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and adoption of ASU 2016-02 is to be done on a modified retrospective basis. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on the Company’s consolidated financial statements and it currently expects that most of its operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets upon the adoption of ASU 2016-02. It is expected that these changes will be material to the Company's consolidated financial statements. The Company will adopt ASU 2016-02 at the beginning of its 2019 fiscal year. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes substantially all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued the following amendments to ASU 2014-09, which have the same effective date and transition date of January 1, 2018: • In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. • In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. • In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. • In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. • In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples There are two methods of adoption allowed, either a "full" retrospective adoption or a "modified" retrospective adoption. The Company has not yet decided which implementation method it will adopt. The Company has hired outside consultants to help in the process of evaluating the potential impact of ASU 2014-09 and has been reviewing customer contracts, but it does not expect the adoption of ASU 2014-09 will have a material impact on the Company’s consolidated financial statements in any one annual period. The Company will adopt ASU 2014-09 at the beginning of its 2018 fiscal year. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This new standard simplifies the accounting for employee share-based payments and involves several aspects of the accounting for share-based transactions, including the potential timing of expenses, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted ASU 2016-09 effective with the first quarter of 2017. The Company has made the allowed accounting policy election to account for forfeitures as they occur, which will affect the timing of stock compensation expense, but not the overall expense. The change in accounting of forfeitures, along with the changes related to how excess tax benefits are recognized, has been done using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the first quarter of 2017, which was not material. An effect of the change was to require recognition of excess tax benefits in our " Consolidated Statements of Income " rather than as a component of equity under the previous standard. For the first quarter of 2017, a tax benefit of $5.3 million was recorded to the Company's income statement. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This new standard applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company has adopted ASU 2015-11 effective with the first quarter of 2017 and it had an immaterial effect on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisition On January 31, 2017 , ACCO Europe, an indirect wholly-owned subsidiary of the Company, completed the Esselte Acquisition. The Esselte Acquisition was made pursuant to the share purchase agreement, dated October 21, 2016, as amended (the "Purchase Agreement") among ACCO Europe, the Company and an entity controlled by J. W. Childs (the "Seller"). With the acquisition of Esselte, ACCO Brands is a leading European manufacturer and marketer of branded business products. Esselte takes products to market under the Leitz ® , Rapid ® and Esselte ® brands in the storage and organization, stapling and punch, business machines and do-it-yourself tools product categories. The combination improves ACCO Brands’ scale and enhances its position as an industry leader in Europe. The purchase price paid at closing was €302.9 million ( US$326.8 million based on January 31, 2017 exchange rates) and is subject to working capital adjustments, estimated to be a reduction of $0.5 million . The purchase price, net of cash acquired of $34.2 million , was $292.6 million . A portion of the purchase price ( €8.1 million ( US$8.7 million based on January 31, 2017 exchange rates)) is being held in an escrow account for a period of up to two years after closing as ACCO Europe’s sole recourse against Seller in the event of any claims against Seller under the Purchase Agreement. A warranty and indemnity insurance policy held by the Company and ACCO Europe insures certain of Seller’s contractual obligations to ACCO Europe under the Purchase Agreement for up to €40.0 million ( US$43.2 million based on January 31, 2017 exchange rates) for a period of up to seven years, subject to certain deductibles and limitations set forth in the policy. The Esselte Acquisition and related expenses were funded through a term loan of €300.0 million ( US$320.8 million based on January 27, 2017 exchange rates) and cash on hand, see " Note 4. Long-term Debt and Short-term Borrowings " for details. For accounting purposes, the Company is the acquiring enterprise. The Esselte Acquisition is being accounted for as a purchase business combination and Esselte's results are included in the Company’s condensed consolidated financial statements from February 1, 2017 forward. The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of acquisition. (in millions of dollars) At January 31, 2017 Calculation of Goodwill: Purchase price, net of working capital adjustments $ 326.3 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 124.1 Deferred tax liabilities 85.6 Pension obligations 171.4 Other non-current liabilities 2.6 Fair value of liabilities assumed $ 383.7 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.3 Inventory 41.9 Property, plant and equipment 84.7 Identifiable intangibles 274.0 Deferred tax assets 95.9 Other assets 11.2 Fair value of assets acquired $ 602.2 Goodwill $ 107.8 We are continuing our review of our fair value estimate of assets acquired and liabilities assumed during the measurement period, which will conclude as soon as we receive the information we are seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not available. This measurement period will not exceed one year from the acquisition date. The excess of the purchase price over the fair value of net assets acquired is allocated to goodwill. The goodwill of $107.8 million is primarily attributable to synergies expected to be realized from facility integration, headcount reduction and other operational streamlining activities, and from the existence of an assembled workforce. The final determination of the purchase price, fair values and resulting goodwill may differ significantly from what is reflected in these condensed consolidated financial statements. Our fair value estimate of assets acquired and liabilities assumed is pending the completion of several elements, including the finalization of an independent appraisal and valuations of the fair value of the assets acquired and liabilities assumed and final review by our management. The primary areas that are not yet finalized relate to net working capital, intangible assets, property, plant and equipment, contingent liabilities and income taxes. Accordingly, there could be material adjustments to our condensed consolidated financial statements, including changes in our amortization and depreciation expense related to the valuation of intangible assets and property and equipment acquired and their respective useful lives, among other adjustments. Transaction costs related to the Esselte Acquisition of $2.1 million and $9.2 million were incurred during the three months ended March 31, 2017 and the year ended December 31, 2016 , respectively, and were reported as advertising, selling, general and administrative expenses. Unaudited Pro Forma Consolidated Results The accounting literature establishes guidelines regarding, and requires the presentation of, the following unaudited pro forma information. Therefore, the unaudited pro forma information presented below is not intended to represent, nor do we believe it is indicative of, the consolidated results of operations of the Company that would have been reported had the Esselte Acquisition been completed on January 1, 2016. Furthermore, the unaudited pro forma information does not give effect to the anticipated synergies or other anticipated benefits of the Esselte Acquisition. Had the Esselte Acquisition occurred on January 1, 2016, unaudited pro forma consolidated results for the three month periods ending March 31, 2017 and 2016 would have been as follows: Three Months Ended March 31, (in millions of dollar, except per share data) 2017 2016 Net sales $ 395.8 $ 382.8 Net income (loss) 9.8 (8.0 ) Net income (loss) per common share (diluted) $ 0.09 $ (0.08 ) The pro forma amounts are based on the Company's historical results of operations and the historical results of operations for the acquired Esselte business, which have been translated at the average foreign exchange rates for the presented periods. The pro forma results of operations have been adjusted for amortization of finite-lived intangibles, and other charges related to acquisition accounting. The pro forma results of operations for the three months ended March 31, 2016 have also been adjusted to include transaction costs related to the Esselte Acquisition of $11.3 million , amortization of the purchase accounting step-up in inventory cost of $0.9 million and financing-related costs. |
Long-Term Debt And Short-Term B
Long-Term Debt And Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Short-Term Borrowings | 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% Undrawn amounts under the 2017 Revolving Facility are subject to a commitment fee rate of 0.25% to 0.40% per annum, depending on the Company’s Consolidated Leverage Ratio. As of March 31, 2017 , the commitment fee rate was 0.35% . Prepayments Subject to certain conditions and specific exceptions, the 2017 Credit Agreement requires the Company to prepay outstanding amounts under the 2017 Credit Agreement under various circumstances, including (a) if sales or dispositions of certain property or assets in any fiscal year results in the receipt of net cash proceeds of $12.0 million , then an amount equal to 100% of the net cash proceeds received in excess of such $12.0 million , and (b) with respect to the AUD Term Loan A, in an amount equal to 100% of the net cash proceeds received from the disposition of any real property located in Australia. The Company also would be required to make prepayments in the event it receives amounts related to certain property insurance or condemnation awards, from additional debt other than debt permitted under the 2017 Credit Agreement and from excess cash flow as determined under the 2017 Credit Agreement. The 2017 Credit Agreement also contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Dividends and share repurchases Under the 2017 Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1.00% of the Company’s Consolidated Total Assets (as defined in the 2017 Credit Agreement); plus (ii) an additional amount not to exceed $75.0 million any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be greater than 2.50 :1.00 and less than or equal to 3.75 :1.00); plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be less than or equal to 2.50 :1.00; plus (iv) any Net Equity Proceeds (as defined in the 2017 Credit Agreement). Financial Covenants The Company’s Consolidated Leverage Ratio as of the end of any fiscal quarter may not exceed 3.75 :1.00; provided that following the consummation of a Material Acquisition (as defined in the 2017 Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurred and as of the end of the three fiscal quarters thereafter, the maximum Consolidated Leverage Ratio level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Esselte Acquisition qualified as a Material Acquisition under the 2017 Credit Agreement. The 2017 Credit Agreement requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2017 Credit Agreement) as of the end of any fiscal quarter at or above 1.25 to 1.00. Other Covenants and Restrictions The 2017 Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The 2017 Credit Agreement also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the 2017 Credit Agreement) that the Company and its subsidiaries may make during the term of the 2017 Credit Agreement. As of and for the periods ended March 31, 2017 and December 31, 2016 , the Company was in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2017 Credit Agreement are guaranteed by certain of the Company’s existing and future subsidiaries, and are secured by substantially all of the Company’s and certain guarantor subsidiaries’ assets, subject to certain exclusions and limitations. Incremental facilities The 2017 Credit Agreement permits the Company to seek increases in the size of the 2017 Revolving Facility and the 2017 Term A Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the 2017 Credit Agreement. As of March 31, 2017 , there were $247.7 million in borrowings under the 2017 Revolving Facility. The amount available for borrowings was $141.0 million (allowing for $11.3 million of letters of credit outstanding on that date)." id="sjs-B4">4. Long-term Debt and Short-term Borrowings Notes payable and long-term debt, listed in order of their security interests, consisted of the following as of March 31, 2017 and December 31, 2016 : (in millions of dollars) March 31, December 31, Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 2.00% at March 31, 2017) $ 320.6 $ — U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) — 81.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.83% at March 31, 2017) 61.2 — Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) — 70.3 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.09% at March 31, 2017) 155.1 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) — 63.7 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.83% at March 31, 2017) 92.6 — Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) — 87.9 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 400.0 Other borrowings 0.5 0.6 Total debt 1,030.0 703.5 Less: Current portion 19.4 68.5 Debt issuance costs, unamortized 7.9 7.3 Long-term debt, net $ 1,002.7 $ 627.7 In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement (the "2017 Credit Agreement"), dated as of January 27, 2017 , among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other agents and various lenders party thereto. The 2017 Credit Agreement amended and restated the Company’s Second Amended and Restated Credit Agreement, dated April 28, 2015, as amended, among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto (the "2015 Credit Agreement"). The 2017 Credit Agreement provides for a five -year senior secured credit facility, which consists of a €300.0 million ( US$320.8 million based on January 27, 2017 exchange rates) term loan facility (the "Euro Term Loan A"), a A$80.0 million ( US$60.4 million based on January 27, 2017 exchange rates) term loan facility (the "AUD Term Loan A") and together with the Euro Term Loan A (the "2017 Term A Loan Facility"), and a US$400.0 million multi-currency revolving credit facility (the "2017 Revolving Facility"). Maturity and amortization Borrowings under the 2017 Revolving Facility and the 2017 Term A Loan Facility mature on January 27, 2022. Amounts under the 2017 Revolving Facility are non-amortizing. Beginning June 30, 2017, the outstanding principal amounts under the 2017 Term A Loan Facility will be payable in quarterly installments in an amount representing, on an annual basis, 5.0% of the initial aggregate principal amount of such loan facility and increasing to 12.5% on an annual basis by June 30, 2020. Interest rates Amounts outstanding under the 2017 Credit Agreement will bear interest at a rate per annum equal to the Euro Rate with a 0% floor, the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the 2017 Credit Agreement, plus an "applicable rate." For the first fiscal quarter of 2017, the applicable rate was 2.00% per annum for Euro and Australian and Canadian dollar denominated loans, and 1.00% per annum for Base Rate loans. Thereafter, the applicable rate applied to outstanding Euro and Australian and Canadian dollar denominated loans and Base Rate loans will be based on the Company’s Consolidated Leverage Ratio (as defined in the 2017 Credit Agreement) as follows: Consolidated Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans > 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% Undrawn amounts under the 2017 Revolving Facility are subject to a commitment fee rate of 0.25% to 0.40% per annum, depending on the Company’s Consolidated Leverage Ratio. As of March 31, 2017 , the commitment fee rate was 0.35% . Prepayments Subject to certain conditions and specific exceptions, the 2017 Credit Agreement requires the Company to prepay outstanding amounts under the 2017 Credit Agreement under various circumstances, including (a) if sales or dispositions of certain property or assets in any fiscal year results in the receipt of net cash proceeds of $12.0 million , then an amount equal to 100% of the net cash proceeds received in excess of such $12.0 million , and (b) with respect to the AUD Term Loan A, in an amount equal to 100% of the net cash proceeds received from the disposition of any real property located in Australia. The Company also would be required to make prepayments in the event it receives amounts related to certain property insurance or condemnation awards, from additional debt other than debt permitted under the 2017 Credit Agreement and from excess cash flow as determined under the 2017 Credit Agreement. The 2017 Credit Agreement also contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Dividends and share repurchases Under the 2017 Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1.00% of the Company’s Consolidated Total Assets (as defined in the 2017 Credit Agreement); plus (ii) an additional amount not to exceed $75.0 million any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be greater than 2.50 :1.00 and less than or equal to 3.75 :1.00); plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be less than or equal to 2.50 :1.00; plus (iv) any Net Equity Proceeds (as defined in the 2017 Credit Agreement). Financial Covenants The Company’s Consolidated Leverage Ratio as of the end of any fiscal quarter may not exceed 3.75 :1.00; provided that following the consummation of a Material Acquisition (as defined in the 2017 Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurred and as of the end of the three fiscal quarters thereafter, the maximum Consolidated Leverage Ratio level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Esselte Acquisition qualified as a Material Acquisition under the 2017 Credit Agreement. The 2017 Credit Agreement requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2017 Credit Agreement) as of the end of any fiscal quarter at or above 1.25 to 1.00. Other Covenants and Restrictions The 2017 Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The 2017 Credit Agreement also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the 2017 Credit Agreement) that the Company and its subsidiaries may make during the term of the 2017 Credit Agreement. As of and for the periods ended March 31, 2017 and December 31, 2016 , the Company was in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2017 Credit Agreement are guaranteed by certain of the Company’s existing and future subsidiaries, and are secured by substantially all of the Company’s and certain guarantor subsidiaries’ assets, subject to certain exclusions and limitations. Incremental facilities The 2017 Credit Agreement permits the Company to seek increases in the size of the 2017 Revolving Facility and the 2017 Term A Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the 2017 Credit Agreement. As of March 31, 2017 , there were $247.7 million in borrowings under the 2017 Revolving Facility. The amount available for borrowings was $141.0 million (allowing for $11.3 million of letters of credit outstanding on that date). |
Pension And Other Retiree Benef
Pension And Other Retiree Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension And Other Retiree Benefits | 5. Pension and Other Retiree Benefits The components of net periodic benefit (income) cost for pension and post-retirement plans for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, Pension Benefits Post-retirement U.S. International (in millions of dollars) 2017 2016 2017 2016 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 $ 0.2 $ — $ — Interest cost 1.8 1.8 2.9 2.7 — 0.1 Expected return on plan assets (3.1 ) (3.0 ) (4.9 ) (4.6 ) — — Amortization of net loss (gain) 0.5 0.5 0.7 0.6 (0.1 ) (0.1 ) Amortization of prior service cost 0.1 0.1 — — — — Net periodic benefit (income) cost $ (0.4 ) $ (0.3 ) $ (1.0 ) $ (1.1 ) $ (0.1 ) $ — We expect to contribute approximately $19.4 million to our defined benefit plans in 2017 , which includes approximately $8.4 million for Esselte. For the three months ended March 31, 2017 , we have contributed $6.8 million to these plans. The Esselte Acquisition added $171.4 million in pension obligations, as of the Esselte Acquisition date. The obligations under the acquired German pension plan represent $133.7 million of this amount. German pension law does not require pre-funding of pension obligations and thus the plan is not funded. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The following table summarizes our stock-based compensation expense (including stock options, restricted stock units ("RSUs") and performance stock units ("PSUs")) for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (in millions of dollars) 2017 2016 Stock option compensation expense $ 0.6 $ 0.9 RSU compensation expense 1.0 1.0 PSU compensation expense 0.8 1.4 Total stock-based compensation expense $ 2.4 $ 3.3 We generally recognize compensation expense for stock-based awards ratably over the vesting period. During the first quarter of 2017 , the Company's Board of Directors approved a stock compensation grant, which consisted of 745,772 stock options, 369,097 RSUs and 706,732 PSUs. The following table summarizes our unrecognized compensation expense and the weighted-average period over which the expense will be recognized as of March 31, 2017 : March 31, 2017 Unrecognized Weighted Average Compensation Years Expense To Be (in millions of dollars, except weighted average years) Expense Recognized Over Stock options $4.6 2.2 RSUs $7.8 2.4 PSUs $17.0 2.1 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories are stated at the lower of cost or net realizable value. The components of inventories were as follows: (in millions of dollars) March 31, December 31, Raw materials $ 45.9 $ 30.3 Work in process 4.0 3.0 Finished goods 237.4 176.7 Total inventories $ 287.3 $ 210.0 |
Goodwill And Identifiable Intan
Goodwill And Identifiable Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Identifiable Intangibles | 8. Goodwill and Identifiable Intangible Assets Goodwill As more fully described in the Company’s 2016 Annual Report on Form 10-K, we test goodwill for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performed this annual assessment, on a qualitative basis, as allowed by GAAP, in the second quarter of 2016 and concluded that no impairment existed. Effective in the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which impacted its determination of its business segments for financial reporting purposes. As a result, the Company no longer reports the results of its Computer Products Group as a separate segment. See " Note 15. Information on Business Segments " for further details on the realigned segments. The Company's three realigned segments are as follows: Operating Segment Geography ACCO Brands North America United States and Canada ACCO Brands EMEA Europe, Middle East and Africa ACCO Brands International Australia, Latin America and Asia-Pacific Goodwill was re-allocated between the realigned segments based on their relative fair values. There were no impairment charges recognized as a result of this change. We have recast our reportable segments for the period presented below to reflect this change. Changes in the net carrying amount of goodwill by segment were as follows: (in millions of dollars) ACCO ACCO ACCO Total Balance at December 31, 2016 $ 380.7 $ 39.5 $ 166.9 $ 587.1 Esselte Acquisition (3.5 ) 112.7 (1.4 ) 107.8 Translation — 2.5 — 2.5 Balance at March 31, 2017 $ 377.2 $ 154.7 $ 165.5 $ 697.4 The goodwill balance includes $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. Goodwill has been recorded on our balance sheet related to the Esselte Acquisition and represents the excess of the cost of the Esselte Acquisition when compared to the fair value estimate of the net assets acquired on January 31, 2017 (the date of the Esselte Acquisition). See " Note 3. Acquisition ," for details on the preliminary calculation of the goodwill acquired in the Esselte Acquisition. Identifiable Intangible Assets The identifiable intangible assets of $274.0 million acquired in the Esselte Acquisition include amortizable customer relationships, indefinite lived and amortizable trade names and patents, which have been recorded at their preliminary estimated fair values. We are continuing our review of our fair value estimate of assets acquired and liabilities assumed during the measurement period, which will conclude as soon as we receive the information we are seeking about facts and circumstances that existed as of the acquisition date, or learn that more information is not available. The fair value of the trade names and patents was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The fair value of the customer relationships was determined using the multi-period excess earnings method which is based on the present value of the projected after-tax cash flows. Amortizable customer relationships, trade names and patents are expected to be amortized over lives ranging from 10 to 30 years from the Esselte Acquisition date of January 31, 2017 . The customer relationships will be amortized on an accelerated basis. The preliminary allocations of the acquired identifiable intangibles acquired in the Esselte Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Trade name - indefinite lived $ 117.0 Indefinite Trade names - amortizable 52.0 15-30 Years Customer relationships 100.4 15 Years Patents 4.6 10 Years Total identifiable intangibles acquired $ 274.0 The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 601.7 $ (44.5 ) (1) $ 557.2 $ 483.3 $ (44.5 ) (1) $ 438.8 Amortizable intangible assets: Trade names 174.3 (51.3 ) 123.0 121.2 (48.8 ) 72.4 Customer and contractual relationships 229.2 (79.8 ) 149.4 127.5 (73.8 ) 53.7 Patents 5.3 (0.1 ) 5.2 0.8 — 0.8 Subtotal 408.8 (131.2 ) 277.6 249.5 (122.6 ) 126.9 Total identifiable intangibles $ 1,010.5 $ (175.7 ) $ 834.8 $ 732.8 $ (167.1 ) $ 565.7 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and indefinite-lived intangible assets, at which time further amortization ceased. The Company’s intangible amortization expense was $8.0 million and $4.7 million for the three months ended March 31, 2017 and 2016 , respectively. Estimated amortization expense for amortizable intangible assets as of March 31, 2017 for the current year and the next five years are as follows: (in millions of dollars) 2017 2018 2019 2020 2021 2022 Estimated amortization expense (2) $ 33.6 $ 31.5 $ 28.2 $ 24.8 $ 21.5 $ 18.1 (2) Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. We test indefinite-lived intangibles for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, as allowed by GAAP, for the majority of indefinite-lived trade names in the second quarter of 2016 and concluded that no impairment existed. For two of our indefinite-lived trade names that are not substantially above their carrying values, Mead ® and Hilroy ® , we performed quantitative tests (Step 1) in the second quarter of 2016. The following long-term growth rates and discount rates were used, 1.5% and 10.0% for Mead ® and 1.5% and 10.5% for Hilroy ® , respectively. We concluded that neither Mead ® nor Hilroy ® was impaired. In the fourth quarter of 2015 we performed a quantitative test, as we identified the recession in Brazil as a triggering event related to our trade name, Tilibra ® , primarily used in Brazil. While we concluded that no impairment existed, the trade name's fair value has been significantly reduced. Key financial assumptions utilized to determine the fair value of Tilibra ® included a long-term growth rate of 6.5% and a 14.5% discount rate. In 2016, the Tilibra ® trade name performed in line with the forecast used in the fourth quarter of 2015 quantitative test; however, the economic conditions in Brazil could deteriorate further triggering additional future reviews. The fair values of Mead ® , Tilibra ® and Hilroy ® trade names were less than 30% above their carrying values as of their last quantitative tests (Step 1). As of March 31, 2017 the carrying values of those trade names were as follows: Mead ® ( $113.3 million ), Tilibra ® ( $65.4 million ) and Hilroy ® ( $12.0 million ). |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 9. Restructuring During the first quarter of 2017 , the Company recorded restructuring expenses of $1.5 million , primarily related to the change in the operating structure associated with our former Computer Products Group segment. Subsequent to the March 31, 2017 balance sheet date, additional restructuring initiatives were approved that have not been reflected in these financial statements. These initiatives approximate $1.5 million and are primarily related to headcount reductions associated with the Esselte business which was acquired on January 31, 2017. During 2016, the Company initiated cost savings plans related to the consolidation and integration of the recently acquired Pelikan Artline business into the Company's existing Australian and New Zealand business. In addition, the Company initiated additional cost savings plans to further enhance its North American operations. The summary of the activity in the restructuring accounts for the three months ended March 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Provision Cash Esselte Acquisition Balance at March 31, 2017 Employee termination costs $ 1.4 $ 1.3 $ (0.4 ) $ 1.4 $ 3.7 Termination of lease agreements 0.1 0.2 (0.1 ) 2.0 2.2 Other — — (0.1 ) 0.1 — Total restructuring liability $ 1.5 $ 1.5 $ (0.6 ) $ 3.5 $ 5.9 We expect the remaining $3.7 million of employee termination costs to be substantially paid in the next twelve months. We expect the remaining $2.2 million of lease termination costs to be substantially paid in the next twenty-eight months. The summary of the activity in the restructuring accounts for the three months ended March 31, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 Provision Cash Esselte Acquisition Balance at March 31, 2016 Employee termination costs $ 0.9 $ — $ (0.4 ) $ — $ 0.5 Termination of lease agreements 0.1 — (0.1 ) — — Total restructuring liability $ 1.0 $ — $ (0.5 ) $ — $ 0.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The reconciliation of income taxes for the three month periods ended March 31, 2017 and 2016 , computed at the U.S. federal statutory income tax rate, compared to our effective income tax rate, was as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 Income tax benefit computed at U.S. statutory income tax rate (35%) $ — $ (0.9 ) Interest on Brazilian Tax Assessment 0.7 0.6 Realized foreign exchange net loss on intercompany loans — (7.4 ) Excess tax benefit from stock-based compensation (5.3 ) — Miscellaneous 1.1 0.3 Income tax benefit as reported $ (3.5 ) $ (7.4 ) Effective tax rate NM NM For the three months ended March 31, 2017 , we recorded an income tax benefit of $3.5 million on income before taxes of $0.1 million . The low effective tax rate for the three months ended March 31, 2017 was primarily due to the excess tax benefit of $5.3 million from the realization of stock-based compensation related tax deductions, associated with the adoption of ASU No. 2016-09. See " Note 2. Recent Accounting Pronouncements " for details on the adoption of this new standard. For the three months ended March 31, 2016 , we recorded an income tax benefit of $7.4 million on a loss before taxes of $2.6 million . The high effective tax rate in 2016 was due to a tax loss on foreign exchange on the repayment of an intercompany loan, for which the pre-tax effect was recorded in equity. The U.S. federal statute of limitations remains open for the year 2013 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia ( 2012 forward), Brazil ( 2011 forward), Canada ( 2008 forward), Germany ( 2010 forward), Sweden ( 2010 forward) and the U.K. ( 2015 forward). We are currently under examination in certain foreign jurisdictions. The Esselte Acquisition added $85.6 million in additional deferred tax liabilities and $95.9 million in additional deferred tax assets, as of the Esselte Acquisition date. Income Tax Assessment In connection with our May 1, 2012 acquisition of the Mead Consumer and Office Products Business ("Mead C&OP"), we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). In December of 2012, the Federal Revenue Department of the Ministry of Finance of Brazil ("FRD") issued a tax assessment (the "Brazilian Tax Assessment") against Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the year 2007. A second assessment challenging the deduction of goodwill from Tilibra's taxable income for the years 2008, 2009 and 2010 was issued by FRD in October 2013. Tilibra is disputing both of the tax assessments through established administrative procedures. We believe we have meritorious defenses and intend to vigorously contest these matters; however, there can be no assurances that we will ultimately prevail. We are still in the administrative stages of the process to challenge the FRD's tax assessments, and the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which is expected to take a number of years. In addition, Tilibra's 2011-2012 tax years remain open and subject to audit, and there can be no assurances that we will not receive additional tax assessments regarding the goodwill for one or both of those years. The time limit for issuing an assessment for 2011 expires in January 2018. If the FRD's initial position is ultimately sustained, the amount assessed would materially and adversely affect our cash flow in the year of settlement. Because there is no settled legal precedent on which to base a definitive opinion as to whether we will ultimately prevail, we consider the outcome of this dispute to be uncertain. Since it is not more likely than not that we will prevail, in 2012, we recorded a reserve in the amount of $44.5 million (at December 31, 2012 exchange rates) in consideration of this contingency, of which $43.3 million was recorded as an adjustment to the purchase price and which included the 2007-2012 tax years plus penalties and interest through December 2012. Included in this reserve is an assumption of penalties at 75% , which is the standard penalty. While there is a possibility that a penalty of 150% could be imposed, based on the facts in our case and existing precedent, we believe the likelihood of a 150% penalty being imposed is not more likely than not. In the meantime, we will continue to actively monitor administrative and judicial court decisions and evaluate their impact, if any, on our legal assessment of the ultimate outcome of our case. In addition, we will continue to accrue interest related to this contingency until such time as the outcome is known or until evidence is presented that we are more likely than not to prevail. During the three months ended March 31, 2017 and 2016 we accrued additional interest as a charge to current income tax expense of $0.7 million and $0.6 million , respectively. At current exchange rates, our accrual through March 31, 2017 , including tax, penalties and interest is $39.3 million . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings per Share Total outstanding shares as of March 31, 2017 and 2016 were 109.5 million and 107.0 million , respectively. For the three months ended March 31, 2017 and 2016 , we acquired 0.7 million and 0.7 million shares, respectively, of treasury shares related to tax withholding for share-based compensation. The calculation of basic earnings per common share is based on the weighted average number of common shares outstanding in the year, or period, over which they were outstanding. Our calculation of diluted earnings per common share assumes that any common shares outstanding were increased by shares that would be issued upon exercise of those stock units for which the average market price for the period exceeds the exercise price less the shares that could have been purchased by the Company with the related proceeds, including compensation expense measured but not yet recognized. Three Months Ended March 31, (in millions) 2017 2016 Weighted-average number of common shares outstanding — basic 108.3 106.1 Stock options 1.5 0.1 Stock-settled stock appreciation rights — 0.1 Restricted stock units 2.6 1.9 Adjusted weighted-average shares and assumed conversions — diluted 112.4 108.2 Awards of potentially dilutive shares of common stock, which have exercise prices that were higher than the average market price during the period, are not included in the computation of dilutive earnings per share as their effect would have been anti-dilutive. For the three months ended March 31, 2017 and 2016 these shares were approximately 2.3 million and 7.1 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. Derivative Financial Instruments We are exposed to various market risks, including changes in foreign currency exchange rates and interest rate changes. We enter into financial instruments to manage and reduce the impact of these risks, not for trading or speculative purposes. The counterparties to these financial instruments are major financial institutions. We continually monitor our foreign currency exposures in order to maximize the overall effectiveness of our foreign currency hedge positions. Principal currencies hedged include the U.S. dollar, Euro, Australian dollar, Canadian dollar, British pound and Japanese Yen. We are subject to credit risk, which relates to the ability of counterparties to meet their contractual payment obligations or the potential non-performance by counterparties to financial instrument contracts. Management continues to monitor the status of our counterparties and will take action, as appropriate, to further manage our counterparty credit risk. There are no credit contingency features in our derivative financial instruments. When hedge accounting is applicable, on the date we enter into a derivative, the derivative is designated as a hedge of the identified exposure. We measure the effectiveness of our hedging relationships both at hedge inception and on an ongoing basis. Forward Currency Contracts We enter into forward foreign currency contracts with third parties to reduce the effect of fluctuating foreign currencies, primarily on foreign denominated inventory purchases and intercompany loans. The majority of the Company’s exposure to local currency movements is in Europe (both the Euro and the British pound), Australia, Canada, Brazil, Mexico and Japan. Forward currency contracts are used to hedge foreign denominated inventory purchases for Europe, Australia, Canada and Japan and are designated as cash flow hedges. Unrealized gains and losses on these contracts for inventory purchases are deferred in other comprehensive income (loss) until the contracts are settled and the underlying hedged transactions are recognized, at which time the deferred gains or losses will be reported in the " Cost of products sold " line in the " Consolidated Statements of Income ." As of March 31, 2017 and December 31, 2016 , we had cash-flow-designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $92.6 million and $76.5 million , respectively. Forward currency contracts used to hedge foreign denominated intercompany loans are not designated as hedging instruments. Gains and losses on these derivative instruments are recognized within " Other expense, net " in the " Consolidated Statements of Income " and are largely offset by the change in the current translated value of the hedged item. In the first of quarter of 2016, we also took out a forward currency contract to hedge an expected intercompany dividend, which also was not designated as a hedging instrument. The periods of the forward foreign exchange contracts correspond to the periods of the hedged transactions, and do not extend beyond March 2018 . As of March 31, 2017 and December 31, 2016 , we had undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $48.3 million and $52.1 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of March 31, 2017 and December 31, 2016 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet March 31, 2017 December 31, Balance Sheet March 31, 2017 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.3 $ 4.0 Other current liabilities $ 0.4 $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.3 0.4 Other current liabilities 0.2 0.3 Total derivatives $ 1.6 $ 4.4 $ 0.6 $ 0.3 The following tables summarize the pre-tax effect of our derivative financial instruments on the condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed Consolidated Financial Statements Amount of Gain (Loss) Recognized in OCI (Effective Portion) Location of (Gain) Loss Reclassified from OCI to Income Amount of (Gain) Loss Three Months Ended March 31, Three Months Ended March 31, (in millions of dollars) 2017 2016 2017 2016 Cash flow hedges: Foreign exchange contracts $ (1.5 ) $ (3.0 ) Cost of products sold $ (1.1 ) $ (0.7 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss Three Months Ended March 31, (in millions of dollars) 2017 2016 Foreign exchange contracts Other expense, net $ (0.8 ) $ 0.6 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | 13. Fair Value of Financial Instruments In establishing a fair value, there is a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The basis of the fair value measurement is categorized in three levels, in order of priority, as described below: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability We utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We have determined that our financial assets and liabilities are Level 2 in the fair value hierarchy. The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 : (in millions of dollars) March 31, December 31, Assets: Forward currency contracts $ 1.6 $ 4.4 Liabilities: Forward currency contracts $ 0.6 $ 0.3 Our forward currency contracts are included in " Other current assets " or " Other current liabilities " and mature within 12 months. The forward foreign currency exchange contracts are primarily valued based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. As such, these derivative instruments are classified within Level 2. The fair values of cash and cash equivalents, notes payable to banks, accounts receivable and accounts payable approximate carrying amounts due principally to their short maturities. The carrying amount of total debt was $1,030.0 million and $703.5 million and the estimated fair value of total debt was $1,033.0 million and $708.4 million at March 31, 2017 and December 31, 2016 , respectively. The fair values are determined from quoted market prices, where available, and from investment bankers using current interest rates considering credit ratings and the remaining time to maturity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) Comprehensive income is defined as net income (loss) and other changes in stockholders’ equity from transactions and other events from sources other than stockholders. The components of, and changes in, accumulated other comprehensive income (loss), net of tax were as follows: (in millions of dollars) Derivative Unrecognized Accumulated Balance at December 31, 2016 $ 2.5 $ (285.9 ) $ (136.0 ) $ (419.4 ) Other comprehensive income (loss) before reclassifications, net of tax (1.2 ) 12.5 (1.4 ) 9.9 Amounts reclassified from accumulated other comprehensive income, net of tax (0.7 ) — 0.9 0.2 Balance at March 31, 2017 $ 0.6 $ (273.4 ) $ (136.5 ) $ (409.3 ) The reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, 2017 2016 (in millions of dollars) Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Details about Accumulated Other Comprehensive Income Components Gain on cash flow hedges: Foreign exchange contracts $ 1.1 $ 0.7 Cost of products sold Tax expense (0.4 ) (0.2 ) Income tax benefit Net of tax $ 0.7 $ 0.5 Defined benefit plan items: Amortization of actuarial loss $ (1.1 ) $ (1.0 ) (1) Amortization of prior service cost (0.1 ) (0.1 ) (1) Total before tax (1.2 ) (1.1 ) Tax benefit 0.3 0.4 Income tax benefit Net of tax $ (0.9 ) $ (0.7 ) Total reclassifications for the period, net of tax $ (0.2 ) $ (0.2 ) (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for pension and post-retirement plans (See " Note 5. Pension and Other Retiree Benefits " for additional details). |
Information On Business Segment
Information On Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 15. Information on Business Segments Effective in the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which impacted its determination of its business segments for financial reporting purposes. The Company has three operating business segments that now comprise regional geographic markets, and as a result, the Company no longer reports the results of its Computer Products Group as a separate segment. Results of the former Computer Products Group segment are reflected in the appropriate geographic segment based on the region in which sales are made. The Company's three realigned segments are as follows: Operating Segment Geography ACCO Brands North America United States and Canada ACCO Brands EMEA Europe, Middle East and Africa ACCO Brands International Australia, Latin America and Asia-Pacific We have recast our reportable segments for each of the periods presented to reflect this change. Each of the Company's three business segments design, market, source, manufacture and sell business and academic products and computer accessories. The Company uses name brands such as Artline ® , AT-A-GLANCE ® , Derwent ® , Esselte ® , Five Star ® , GBC ® , Hilroy ® , Kensington ®, Leitz ® , Marbig ® , Mead ® , NOBO ® , Quartet ® , Rapid ® , Rexel ® , Swingline ® , Tilibra ® , Wilson Jones ® and many others. Products and brands are not confined to one channel or product category and are sold based on end-user preference in each geographic region. Our business products include stapling, punching, organizational products, desktop accessories, binding and laminating equipment and related consumable supplies, shredders and whiteboards. Our academic products include notebooks, folders, calendars and stationery products. Our computer accessories primarily include security products, input devices such as presenters, mice and trackballs, ergonomic aids such as foot and wrist rests, docking stations, and other PC and tablet accessories. Our customers are primarily large global and regional resellers of our products including traditional office supply resellers and wholesalers, mass merchandisers, other retailers, on-line retailers, information technology value-added resellers and original equipment manufacturers, among others. We also sell directly to the consumer. Net sales by business segment for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 ACCO Brands North America $ 174.9 $ 179.3 ACCO Brands EMEA 96.5 38.9 ACCO Brands International 88.4 59.9 Net sales $ 359.8 $ 278.1 Operating income by business segment for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 ACCO Brands North America $ 6.6 $ 10.0 ACCO Brands EMEA 4.8 0.2 ACCO Brands International 10.1 5.6 Segment operating income 21.5 15.8 Corporate (12.2 ) (9.3 ) Operating income (1) 9.3 6.5 Interest expense 9.8 10.7 Interest income (1.3 ) (1.4 ) Equity in earnings of joint-venture — (1.3 ) Other expense, net 0.7 1.1 Income (loss) before income tax $ 0.1 $ (2.6 ) (1) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. The following table presents the measure of segment assets used by the Company’s chief operating decision maker. (in millions of dollars) March 31, 2017 December 31, 2016 ACCO Brands North America (2) $ 380.0 $ 404.3 ACCO Brands EMEA (2) 270.9 104.0 ACCO Brands International (2) 261.1 323.4 Total segment assets 912.0 831.7 Unallocated assets 1,784.5 1,232.0 Corporate (2) 1.6 0.8 Total assets $ 2,698.1 $ 2,064.5 (2) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint-ventures accounted for on an equity basis. As a supplement to the presentation of segment assets presented above, the table below presents segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations. (in millions of dollars) March 31, 2017 December 31, 2016 ACCO Brands North America (3) $ 1,181.4 $ 1,206.8 ACCO Brands EMEA (3) 698.6 155.2 ACCO Brands International (3) 564.2 622.5 Total segment assets 2,444.2 1,984.5 Unallocated assets 252.3 79.2 Corporate (3) 1.6 0.8 Total assets $ 2,698.1 $ 2,064.5 (3) Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, and prepaid debt issuance costs. |
Joint-Venture Investment
Joint-Venture Investment | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint-Venture Investments | 16. Joint-Venture Investment Summarized below is the financial information for the Pelikan Artline joint-venture, in which we owned a 50% non-controlling interest, through May 1, 2016, which was accounted for using the equity method. Accordingly, we recorded our proportionate share of earnings or losses on the line entitled " Equity in earnings of joint-venture " in the " Consolidated Statements of Income ." On May 2, 2016, the Company completed the PA Acquisition and accordingly, the results of the Pelikan Artline joint-venture are included in the Company's condensed consolidated financial statements from the date of the PA Acquisition, May 2, 2016. Three Months Ended March 31, (in millions of dollars) 2016 Net sales $ 26.0 Gross profit 9.8 Net income 2.5 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 17. Commitments and Contingencies Pending Litigation - Brazil Tax Assessment In connection with our May 1, 2012 acquisition of Mead C&OP we assumed all of the tax liabilities for the acquired foreign operations. See " Note 10. Income Taxes - Income Tax Assessment" for details on tax assessments issued by the FRD against our acquired indirect subsidiary, Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the years 2007 through 2010. Other Pending Litigation There are various other claims, lawsuits and pending actions against us incidental to our operations. It is the opinion of management that (other than the Brazilian Tax Assessment) the ultimate resolution of these matters will not have a material adverse effect on our consolidated financial condition, results of operations or cash flow. However, there is no assurance that we will ultimately be successful in our defense of any of these matters or that an adverse outcome in any matter will not affect our results of operations, financial condition or cash flow. Environmental We are subject to national, state, provincial and/or local environmental laws and regulations concerning the discharge of materials into the environment and the handling, disposal and clean-up of waste materials and otherwise relating to the protection of the environment. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that we may undertake in the future. In the opinion of our management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect upon our capital expenditures, financial condition and results of operations or competitive position. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of acquisition. (in millions of dollars) At January 31, 2017 Calculation of Goodwill: Purchase price, net of working capital adjustments $ 326.3 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 124.1 Deferred tax liabilities 85.6 Pension obligations 171.4 Other non-current liabilities 2.6 Fair value of liabilities assumed $ 383.7 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.3 Inventory 41.9 Property, plant and equipment 84.7 Identifiable intangibles 274.0 Deferred tax assets 95.9 Other assets 11.2 Fair value of assets acquired $ 602.2 Goodwill $ 107.8 |
Pro Forma Consolidated Results | Had the Esselte Acquisition occurred on January 1, 2016, unaudited pro forma consolidated results for the three month periods ending March 31, 2017 and 2016 would have been as follows: Three Months Ended March 31, (in millions of dollar, except per share data) 2017 2016 Net sales $ 395.8 $ 382.8 Net income (loss) 9.8 (8.0 ) Net income (loss) per common share (diluted) $ 0.09 $ (0.08 ) |
Long-Term Debt And Short-Term25
Long-Term Debt And Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes payable and long-term debt, listed in order of their security interests, consisted of the following as of March 31, 2017 and December 31, 2016 : (in millions of dollars) March 31, December 31, Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 2.00% at March 31, 2017) $ 320.6 $ — U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) — 81.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.83% at March 31, 2017) 61.2 — Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) — 70.3 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.09% at March 31, 2017) 155.1 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) — 63.7 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.83% at March 31, 2017) 92.6 — Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) — 87.9 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 400.0 Other borrowings 0.5 0.6 Total debt 1,030.0 703.5 Less: Current portion 19.4 68.5 Debt issuance costs, unamortized 7.9 7.3 Long-term debt, net $ 1,002.7 $ 627.7 |
Schedule of Applicable Rates Based on the Company's Consolidated Leverage Ratio | Thereafter, the applicable rate applied to outstanding Euro and Australian and Canadian dollar denominated loans and Base Rate loans will be based on the Company’s Consolidated Leverage Ratio (as defined in the 2017 Credit Agreement) as follows: Consolidated Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans > 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% |
Pension And Other Retiree Ben26
Pension And Other Retiree Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost for Pension and Post-Retirement Plans | The components of net periodic benefit (income) cost for pension and post-retirement plans for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, Pension Benefits Post-retirement U.S. International (in millions of dollars) 2017 2016 2017 2016 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 $ 0.2 $ — $ — Interest cost 1.8 1.8 2.9 2.7 — 0.1 Expected return on plan assets (3.1 ) (3.0 ) (4.9 ) (4.6 ) — — Amortization of net loss (gain) 0.5 0.5 0.7 0.6 (0.1 ) (0.1 ) Amortization of prior service cost 0.1 0.1 — — — — Net periodic benefit (income) cost $ (0.4 ) $ (0.3 ) $ (1.0 ) $ (1.1 ) $ (0.1 ) $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes our stock-based compensation expense (including stock options, restricted stock units ("RSUs") and performance stock units ("PSUs")) for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (in millions of dollars) 2017 2016 Stock option compensation expense $ 0.6 $ 0.9 RSU compensation expense 1.0 1.0 PSU compensation expense 0.8 1.4 Total stock-based compensation expense $ 2.4 $ 3.3 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The following table summarizes our unrecognized compensation expense and the weighted-average period over which the expense will be recognized as of March 31, 2017 : March 31, 2017 Unrecognized Weighted Average Compensation Years Expense To Be (in millions of dollars, except weighted average years) Expense Recognized Over Stock options $4.6 2.2 RSUs $7.8 2.4 PSUs $17.0 2.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories are stated at the lower of cost or net realizable value. The components of inventories were as follows: (in millions of dollars) March 31, December 31, Raw materials $ 45.9 $ 30.3 Work in process 4.0 3.0 Finished goods 237.4 176.7 Total inventories $ 287.3 $ 210.0 |
Goodwill And Identifiable Int29
Goodwill And Identifiable Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Net Carrying Amount of Goodwill by Segment | Changes in the net carrying amount of goodwill by segment were as follows: (in millions of dollars) ACCO ACCO ACCO Total Balance at December 31, 2016 $ 380.7 $ 39.5 $ 166.9 $ 587.1 Esselte Acquisition (3.5 ) 112.7 (1.4 ) 107.8 Translation — 2.5 — 2.5 Balance at March 31, 2017 $ 377.2 $ 154.7 $ 165.5 $ 697.4 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The preliminary allocations of the acquired identifiable intangibles acquired in the Esselte Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Trade name - indefinite lived $ 117.0 Indefinite Trade names - amortizable 52.0 15-30 Years Customer relationships 100.4 15 Years Patents 4.6 10 Years Total identifiable intangibles acquired $ 274.0 |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 601.7 $ (44.5 ) (1) $ 557.2 $ 483.3 $ (44.5 ) (1) $ 438.8 Amortizable intangible assets: Trade names 174.3 (51.3 ) 123.0 121.2 (48.8 ) 72.4 Customer and contractual relationships 229.2 (79.8 ) 149.4 127.5 (73.8 ) 53.7 Patents 5.3 (0.1 ) 5.2 0.8 — 0.8 Subtotal 408.8 (131.2 ) 277.6 249.5 (122.6 ) 126.9 Total identifiable intangibles $ 1,010.5 $ (175.7 ) $ 834.8 $ 732.8 $ (167.1 ) $ 565.7 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and indefinite-lived intangible assets, at which time further amortization ceased. |
Estimated Amortization Expense for Future Periods | Estimated amortization expense for amortizable intangible assets as of March 31, 2017 for the current year and the next five years are as follows: (in millions of dollars) 2017 2018 2019 2020 2021 2022 Estimated amortization expense (2) $ 33.6 $ 31.5 $ 28.2 $ 24.8 $ 21.5 $ 18.1 (2) Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | summary of the activity in the restructuring accounts for the three months ended March 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Provision Cash Esselte Acquisition Balance at March 31, 2017 Employee termination costs $ 1.4 $ 1.3 $ (0.4 ) $ 1.4 $ 3.7 Termination of lease agreements 0.1 0.2 (0.1 ) 2.0 2.2 Other — — (0.1 ) 0.1 — Total restructuring liability $ 1.5 $ 1.5 $ (0.6 ) $ 3.5 $ 5.9 We expect the remaining $3.7 million of employee termination costs to be substantially paid in the next twelve months. We expect the remaining $2.2 million of lease termination costs to be substantially paid in the next twenty-eight months. The summary of the activity in the restructuring accounts for the three months ended March 31, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 Provision Cash Esselte Acquisition Balance at March 31, 2016 Employee termination costs $ 0.9 $ — $ (0.4 ) $ — $ 0.5 Termination of lease agreements 0.1 — (0.1 ) — — Total restructuring liability $ 1.0 $ — $ (0.5 ) $ — $ 0.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes for the three month periods ended March 31, 2017 and 2016 , computed at the U.S. federal statutory income tax rate, compared to our effective income tax rate, was as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 Income tax benefit computed at U.S. statutory income tax rate (35%) $ — $ (0.9 ) Interest on Brazilian Tax Assessment 0.7 0.6 Realized foreign exchange net loss on intercompany loans — (7.4 ) Excess tax benefit from stock-based compensation (5.3 ) — Miscellaneous 1.1 0.3 Income tax benefit as reported $ (3.5 ) $ (7.4 ) Effective tax rate NM NM |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our calculation of diluted earnings per common share assumes that any common shares outstanding were increased by shares that would be issued upon exercise of those stock units for which the average market price for the period exceeds the exercise price less the shares that could have been purchased by the Company with the related proceeds, including compensation expense measured but not yet recognized. Three Months Ended March 31, (in millions) 2017 2016 Weighted-average number of common shares outstanding — basic 108.3 106.1 Stock options 1.5 0.1 Stock-settled stock appreciation rights — 0.1 Restricted stock units 2.6 1.9 Adjusted weighted-average shares and assumed conversions — diluted 112.4 108.2 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our derivative financial instruments as of March 31, 2017 and December 31, 2016 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet March 31, 2017 December 31, Balance Sheet March 31, 2017 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.3 $ 4.0 Other current liabilities $ 0.4 $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.3 0.4 Other current liabilities 0.2 0.3 Total derivatives $ 1.6 $ 4.4 $ 0.6 $ 0.3 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax effect of our derivative financial instruments on the condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed Consolidated Financial Statements Amount of Gain (Loss) Recognized in OCI (Effective Portion) Location of (Gain) Loss Reclassified from OCI to Income Amount of (Gain) Loss Three Months Ended March 31, Three Months Ended March 31, (in millions of dollars) 2017 2016 2017 2016 Cash flow hedges: Foreign exchange contracts $ (1.5 ) $ (3.0 ) Cost of products sold $ (1.1 ) $ (0.7 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss Three Months Ended March 31, (in millions of dollars) 2017 2016 Foreign exchange contracts Other expense, net $ (0.8 ) $ 0.6 |
Fair Value Of Financial Instr34
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 : (in millions of dollars) March 31, December 31, Assets: Forward currency contracts $ 1.6 $ 4.4 Liabilities: Forward currency contracts $ 0.6 $ 0.3 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of, and changes in, accumulated other comprehensive income (loss), net of tax were as follows: (in millions of dollars) Derivative Unrecognized Accumulated Balance at December 31, 2016 $ 2.5 $ (285.9 ) $ (136.0 ) $ (419.4 ) Other comprehensive income (loss) before reclassifications, net of tax (1.2 ) 12.5 (1.4 ) 9.9 Amounts reclassified from accumulated other comprehensive income, net of tax (0.7 ) — 0.9 0.2 Balance at March 31, 2017 $ 0.6 $ (273.4 ) $ (136.5 ) $ (409.3 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, 2017 2016 (in millions of dollars) Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Details about Accumulated Other Comprehensive Income Components Gain on cash flow hedges: Foreign exchange contracts $ 1.1 $ 0.7 Cost of products sold Tax expense (0.4 ) (0.2 ) Income tax benefit Net of tax $ 0.7 $ 0.5 Defined benefit plan items: Amortization of actuarial loss $ (1.1 ) $ (1.0 ) (1) Amortization of prior service cost (0.1 ) (0.1 ) (1) Total before tax (1.2 ) (1.1 ) Tax benefit 0.3 0.4 Income tax benefit Net of tax $ (0.9 ) $ (0.7 ) Total reclassifications for the period, net of tax $ (0.2 ) $ (0.2 ) (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for pension and post-retirement plans (See " Note 5. Pension and Other Retiree Benefits " for additional details). |
Information On Business Segme36
Information On Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Reporting Segments | Net sales by business segment for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 ACCO Brands North America $ 174.9 $ 179.3 ACCO Brands EMEA 96.5 38.9 ACCO Brands International 88.4 59.9 Net sales $ 359.8 $ 278.1 |
Schedule of Operating Income by Reporting Segment | Operating income by business segment for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, (in millions of dollars) 2017 2016 ACCO Brands North America $ 6.6 $ 10.0 ACCO Brands EMEA 4.8 0.2 ACCO Brands International 10.1 5.6 Segment operating income 21.5 15.8 Corporate (12.2 ) (9.3 ) Operating income (1) 9.3 6.5 Interest expense 9.8 10.7 Interest income (1.3 ) (1.4 ) Equity in earnings of joint-venture — (1.3 ) Other expense, net 0.7 1.1 Income (loss) before income tax $ 0.1 $ (2.6 ) (1) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Reconciliation of Assets from Segment to Consolidated | The following table presents the measure of segment assets used by the Company’s chief operating decision maker. (in millions of dollars) March 31, 2017 December 31, 2016 ACCO Brands North America (2) $ 380.0 $ 404.3 ACCO Brands EMEA (2) 270.9 104.0 ACCO Brands International (2) 261.1 323.4 Total segment assets 912.0 831.7 Unallocated assets 1,784.5 1,232.0 Corporate (2) 1.6 0.8 Total assets $ 2,698.1 $ 2,064.5 (2) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint-ventures accounted for on an equity basis. |
Schedule of Assets by Segment Including Allocation of Intangible Assets and Goodwill | As a supplement to the presentation of segment assets presented above, the table below presents segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations. (in millions of dollars) March 31, 2017 December 31, 2016 ACCO Brands North America (3) $ 1,181.4 $ 1,206.8 ACCO Brands EMEA (3) 698.6 155.2 ACCO Brands International (3) 564.2 622.5 Total segment assets 2,444.2 1,984.5 Unallocated assets 252.3 79.2 Corporate (3) 1.6 0.8 Total assets $ 2,698.1 $ 2,064.5 (3) Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, and prepaid debt issuance costs. |
Joint-Venture Investment (Table
Joint-Venture Investment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Summarized below is the financial information for the Pelikan Artline joint-venture, in which we owned a 50% non-controlling interest, through May 1, 2016, which was accounted for using the equity method. Accordingly, we recorded our proportionate share of earnings or losses on the line entitled " Equity in earnings of joint-venture " in the " Consolidated Statements of Income ." On May 2, 2016, the Company completed the PA Acquisition and accordingly, the results of the Pelikan Artline joint-venture are included in the Company's condensed consolidated financial statements from the date of the PA Acquisition, May 2, 2016. Three Months Ended March 31, (in millions of dollars) 2016 Net sales $ 26.0 Gross profit 9.8 Net income 2.5 |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) - segment | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2016 | |
Number of segments | 3 | |
Pelikan Artline | ||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% |
Recent Accounting Pronounceme39
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating income | [1] | $ (9.3) | $ (6.5) | |
Accounting Standards Update 2017-07 | Pro Forma | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating income | $ 8 | |||
Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax benefit | $ 5.3 | |||
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) € in Millions, $ in Millions | Jan. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2017EUR (€) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) |
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 292.6 | $ 0 | ||||||
Escrow period | 2 years | 2 years | ||||||
Period of Warranty and Indemnity Policy | 7 years | 7 years | ||||||
Esselte Group Holdings AB | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 107.8 | |||||||
Payments to Acquire Businesses, Gross | 326.8 | € 302.9 | ||||||
Working Capital Adjustments to Purchase Price | 0.5 | |||||||
Cash acquired | 34.2 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 292.6 | |||||||
Business Acquisition, Consideration Held in Escrow | 8.7 | € 8.1 | ||||||
Warranty and indemnity insurance policy | $ 43.2 | € 40 | ||||||
Selling, General and Administrative Expenses [Member] | Esselte Group Holdings AB | ||||||||
Business Acquisition [Line Items] | ||||||||
Transaction Related Costs | $ 2.1 | $ 9.2 | ||||||
Senior Secured Notes | Euro Term Loan A | ||||||||
Business Acquisition [Line Items] | ||||||||
Maximum borrowing capacity | $ 320.8 | € 300 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed) (Details) - Esselte Group Holdings AB $ in Millions | Jan. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Purchase price, net of working capital adjustments | $ 326.3 |
Accounts payable and accrued liabilities | 124.1 |
Deferred tax liabilities | 85.6 |
Pension obligations | 171.4 |
Other non-current liabilities | 2.6 |
Fair value of liabilities assumed | 383.7 |
Cash acquired | 34.2 |
Accounts receivable | 60.3 |
Inventory | 41.9 |
Property, plant and equipment | 84.7 |
Identifiable intangibles | 274 |
Deferred tax assets | 95.9 |
Other assets | 11.2 |
Fair value of assets acquired | 602.2 |
Goodwill | $ 107.8 |
Acquisitions (Pro Forma Consoli
Acquisitions (Pro Forma Consolidated Results) (Details) - Esselte Group Holdings AB - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 395.8 | $ 382.8 |
Net income (loss) | $ 9.8 | $ (8) |
Net income (loss) per common share (diluted) | $ 0.09 | $ (0.08) |
Transaction-related costs | ||
Business Acquisition [Line Items] | ||
Transaction Related Costs | $ 11.3 | |
Amortization of purchase accounting step-up | ||
Business Acquisition [Line Items] | ||
Amortization of inventory step-up | $ 0.9 |
Long-Term Debt And Short-Term43
Long-Term Debt And Short-Term Borrowings (Notes Payable and Long-term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Total debt | $ 1,030 | $ 703.5 |
Current portion | 19.4 | 68.5 |
Debt issuance costs, unamortized | 7.9 | 7.3 |
Long-term debt, net | 1,002.7 | 627.7 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 0.5 | 0.6 |
Senior Secured Notes | Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 2.00% at March 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 320.6 | 0 |
Line of Credit Facility, Interest Rate at Period End | 2.00% | |
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 81 |
Line of Credit Facility, Interest Rate at Period End | 2.27% | |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.83% at March 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 61.2 | $ 0 |
Line of Credit Facility, Interest Rate at Period End | 3.83% | |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 70.3 |
Line of Credit Facility, Interest Rate at Period End | 3.25% | |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.09% at March 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 155.1 | $ 0 |
Line of Credit Facility, Interest Rate at Period End | 3.09% | |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 63.7 |
Line of Credit Facility, Interest Rate at Period End | 2.59% | |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.83% at March 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 92.6 | $ 0 |
Line of Credit Facility, Interest Rate at Period End | 3.83% | |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 87.9 |
Line of Credit Facility, Interest Rate at Period End | 3.27% | |
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 400 | $ 400 |
Stated Percentage | 5.25% | 5.25% |
Senior Secured Credit Facility Due January 2022 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 5 years | |
2017 Revolving Facility | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 247.7 |
Long-Term Debt And Short-Term44
Long-Term Debt And Short-Term Borrowings (Interest Rates) (Details) - Secured Debt - Senior Secured Credit Facility Due January 2022 | 3 Months Ended |
Mar. 31, 2017 | |
Euro/AUD/CDN | 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Euro/AUD/CDN | ≤ 4.00 to 1.00 and 3.50 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Euro/AUD/CDN | ≤ 3.50 to 1.00 and 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Euro/AUD/CDN | ≤ 3.00 to 1.00 and 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Euro/AUD/CDN | ≤ 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Base Rate | 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Base Rate | ≤ 4.00 to 1.00 and 3.50 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Base Rate | ≤ 3.50 to 1.00 and 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Base Rate | ≤ 3.00 to 1.00 and 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Base Rate | ≤ 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.25% |
Minimum | Eurodollar | |
Debt Instrument [Line Items] | |
Debt Instrument Base Rate | 0.00% |
Long-Term Debt And Short-Term45
Long-Term Debt And Short-Term Borrowings (Narrative) (Details) € in Millions, AUD in Millions | Jun. 30, 2020 | Jun. 30, 2017 | Mar. 31, 2017USD ($) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) | Jan. 27, 2017AUD | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Total debt | $ 1,030,000,000 | $ 703,500,000 | |||||
Secured Debt | Euro Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 320,800,000 | € 300 | |||||
Secured Debt | AUD Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 60,400,000 | AUD 80 | |||||
Secured Debt | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 0 | 70,300,000 | |||||
Secured Debt | Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 0 | $ 87,900,000 | |||||
2017 Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding | $ 11,300,000 | ||||||
2017 Revolving Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||
Commitment fee percent | 0.35% | ||||||
Total debt | $ 247,700,000 | ||||||
Amount available for borrowings under Senior Secured Revolving Credit Facilities | $ 141,000,000 | ||||||
Senior Secured Credit Facility Due January 2022 | AUD Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sales or dispositions of property or assets, percentage | 100.00% | ||||||
Senior Secured Credit Facility Due January 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sales or dispositions of property or assets | $ 12,000,000 | ||||||
Proceeds from sales or dispositions of property or assets, percentage | 100.00% | ||||||
Dividends and/or repurchase shares, threshold | $ 30,000,000 | ||||||
Dividends and/or repurchase shares, threshold, percent of total assets | 1.00% | ||||||
Minimum leverage ratio for payment of dividends or repurchase of shares | 2.50 | ||||||
Maximum leverage ratio for payment of dividends or repurchase of shares | 3.75 | ||||||
Leverage ratio, potential increase | 0.50 | ||||||
Maximum borrowing capacity, potential increase | $ 500,000,000 | ||||||
Minimum | 2017 Revolving Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percent | 0.25% | ||||||
Minimum | Senior Secured Credit Facility Due January 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio | 1.25 | ||||||
Minimum | Scenario, Forecast | Secured Debt | Senior Secured Term Loan As, due January 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly installment, percentage of principal | 5.00% | ||||||
Maximum | 2017 Revolving Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percent | 0.40% | ||||||
Maximum | Senior Secured Credit Facility Due January 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Dividends and/or repurchase shares, threshold | $ 75,000,000 | ||||||
Leverage ratio | 3.75 | ||||||
Maximum | Scenario, Forecast | Secured Debt | Senior Secured Term Loan As, due January 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly installment, percentage of principal | 12.50% | ||||||
≤ 3.50 to 1.00 and 3.00 to 1.00 | Euro/AUD/CDN | Senior Secured Credit Facility Due January 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
≤ 3.50 to 1.00 and 3.00 to 1.00 | Base Rate | Senior Secured Credit Facility Due January 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Pension And Other Retiree Ben46
Pension And Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jan. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to defined benefit plans for 2017 | $ 19.4 | ||
Contributions by company to date | 6.8 | ||
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.3 | $ 0.3 | |
Interest cost | 1.8 | 1.8 | |
Expected return on plan assets | (3.1) | (3) | |
Amortization of net loss (gain) | 0.5 | 0.5 | |
Amortization of prior service cost | 0.1 | 0.1 | |
Net periodic benefit (income) cost | (0.4) | (0.3) | |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.3 | 0.2 | |
Interest cost | 2.9 | 2.7 | |
Expected return on plan assets | (4.9) | (4.6) | |
Amortization of net loss (gain) | 0.7 | 0.6 | |
Amortization of prior service cost | 0 | 0 | |
Net periodic benefit (income) cost | (1) | (1.1) | |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | |
Interest cost | 0 | 0.1 | |
Expected return on plan assets | 0 | 0 | |
Amortization of net loss (gain) | (0.1) | (0.1) | |
Amortization of prior service cost | 0 | 0 | |
Net periodic benefit (income) cost | (0.1) | $ 0 | |
Esselte Group Holdings AB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to defined benefit plans for 2017 | $ 8.4 | ||
Pension obligations | $ 171.4 | ||
GERMANY | Esselte Group Holdings AB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension obligations | $ 133.7 |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2.4 | $ 3.3 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.6 | 0.9 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1 | 1 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.8 | $ 1.4 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4.6 |
Weighted Average Years Expense To Be Recognized Over | 2 years 2 months 9 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 7.8 |
Weighted Average Years Expense To Be Recognized Over | 2 years 4 months 11 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 17 |
Weighted Average Years Expense To Be Recognized Over | 2 years 1 month 12 days |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 745,772 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 369,097 |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 706,732 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45.9 | $ 30.3 |
Work in process | 4 | 3 |
Finished goods | 237.4 | 176.7 |
Total inventories | $ 287.3 | $ 210 |
Goodwill And Identifiable Int51
Goodwill And Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | $ 587.1 | |
Translation | 2.5 | |
Balance at March 31, 2017 | 697.4 | |
Goodwill, accumulated impairment losses | $ 215.1 | |
ACCO Brands North America | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 380.7 | |
Translation | 0 | |
Balance at March 31, 2017 | 377.2 | |
ACCO Brands EMEA | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 39.5 | |
Translation | 2.5 | |
Balance at March 31, 2017 | 154.7 | |
ACCO Brands International | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 166.9 | |
Translation | 0 | |
Balance at March 31, 2017 | 165.5 | |
Esselte Group Holdings AB | ||
Goodwill [Roll Forward] | ||
Esselte Acquisition | 107.8 | |
Esselte Group Holdings AB | ACCO Brands North America | ||
Goodwill [Roll Forward] | ||
Esselte Acquisition | (3.5) | |
Esselte Group Holdings AB | ACCO Brands EMEA | ||
Goodwill [Roll Forward] | ||
Esselte Acquisition | 112.7 | |
Esselte Group Holdings AB | ACCO Brands International | ||
Goodwill [Roll Forward] | ||
Esselte Acquisition | $ (1.4) |
Goodwill And Identifiable Int52
Goodwill And Identifiable Intangibles (Acquired Finite-Lived Intangibles) (Details) - Esselte Group Holdings AB - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Jan. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite lived intangible assets | $ 274 | |
Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life Ranges | 10 years | |
Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life Ranges | 30 years | |
Customer and contractual relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite lived intangible assets | 100.4 | |
Remaining Useful Life Ranges | 15 years | |
Trade Names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite lived intangible assets | 52 | |
Trade Names | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life Ranges | 15 years | |
Trade Names | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life Ranges | 30 years | |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite lived intangible assets | 4.6 | |
Remaining Useful Life Ranges | 10 years | |
Trade Names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite lived intangible assets | $ 117 |
Goodwill And Identifiable Int53
Goodwill And Identifiable Intangibles (Intangible Assets) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | ||
Intangible Assets [Line Items] | |||
Number of segments | segment | 3 | ||
Amortizable intangible assets, Gross Carrying Amounts | $ 408.8 | $ 249.5 | |
Amortizable intangible assets, Accumulated Amortization | (131.2) | (122.6) | |
Amortizable intangible assets, Net Book Value | 277.6 | 126.9 | |
Total identifiable intangibles, Gross Carrying Amounts | 1,010.5 | 732.8 | |
Total identifiable intangibles, Accumulated Amortization | (175.7) | (167.1) | |
Total identifiable intangibles, Net Book Value | 834.8 | 565.7 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 174.3 | 121.2 | |
Amortizable intangible assets, Accumulated Amortization | (51.3) | (48.8) | |
Amortizable intangible assets, Net Book Value | 123 | 72.4 | |
Customer and contractual relationships | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 229.2 | 127.5 | |
Amortizable intangible assets, Accumulated Amortization | (79.8) | (73.8) | |
Amortizable intangible assets, Net Book Value | 149.4 | 53.7 | |
Patents | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 5.3 | 0.8 | |
Amortizable intangible assets, Accumulated Amortization | (0.1) | 0 | |
Amortizable intangible assets, Net Book Value | 5.2 | 0.8 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, gross carrying amount | 601.7 | 483.3 | |
Indefinite lived intangible asset accumulated amortization prior to the adoption of authoritative guidance | [1] | (44.5) | (44.5) |
Indefinite-lived intangible assets, Net Book Value | $ 557.2 | $ 438.8 | |
[1] | Accumulated amortization prior to the adoption of authoritative guidance on goodwill and indefinite-lived intangible assets, at which time further amortization ceased. |
Goodwill And Identifiable Int54
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 8 | $ 4.7 | |
Estimated amortization expense, 2017 | [1] | 33.6 | |
Estimated amortization expense, 2018 | [1] | 31.5 | |
Estimated amortization expense, 2019 | [1] | 28.2 | |
Estimated amortization expense, 2020 | [1] | 24.8 | |
Estimated amortization expense, 2021 | [1] | 21.5 | |
Estimated amortization expense, 2022 | [1] | $ 18.1 | |
[1] | Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Goodwill And Identifiable Int55
Goodwill And Identifiable Intangibles (Narrative) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | ||
Number of segments | segment | 3 | ||
Impairment of intangible assets | 0 | ||
Mead Trade Name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 0 | ||
Long-term growth rate | 1.50% | ||
Discount rate | 10.00% | ||
Percent above carrying value | 30.00% | ||
Carrying values of intangible assets | $ 113.3 | ||
Hilroy Trade Name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 0 | ||
Long-term growth rate | 1.50% | ||
Discount rate | 10.50% | ||
Percent above carrying value | 30.00% | ||
Carrying values of intangible assets | 12 | ||
Brazil | Tilibra Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 0 | ||
Long-term growth rate | 6.50% | ||
Discount rate | 14.50% | ||
Percent above carrying value | 30.00% | ||
Carrying values of intangible assets | $ 65.4 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | $ 1.5 | $ 1 |
Provision | 1.5 | 0 |
Cash Expenditures | (0.6) | (0.5) |
Balance at End of Period | 5.9 | 0.5 |
Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | 1.4 | 0.9 |
Provision | 1.3 | 0 |
Cash Expenditures | (0.4) | (0.4) |
Balance at End of Period | 3.7 | 0.5 |
Restructuring and Related Cost, Expected Cost | $ 1.5 | |
Restructuring and Related Costs, Payment Period | 12 months | |
Termination of lease agreements | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | $ 0.1 | 0.1 |
Provision | 0.2 | 0 |
Cash Expenditures | (0.1) | (0.1) |
Balance at End of Period | $ 2.2 | 0 |
Restructuring and Related Costs, Payment Period | 28 months | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | $ 0 | |
Provision | 0 | |
Cash Expenditures | (0.1) | |
Balance at End of Period | 0 | |
Esselte Group Holdings AB | ||
Restructuring Reserve [Roll Forward] | ||
Esselte Acquisition | 3.5 | 0 |
Esselte Group Holdings AB | Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Esselte Acquisition | 1.4 | 0 |
Esselte Group Holdings AB | Termination of lease agreements | ||
Restructuring Reserve [Roll Forward] | ||
Esselte Acquisition | 2 | $ 0 |
Esselte Group Holdings AB | Other | ||
Restructuring Reserve [Roll Forward] | ||
Esselte Acquisition | $ 0.1 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
Income tax benefit computed at U.S. statutory income tax rate (35%) | $ 0 | $ (0.9) |
Interest on Brazilian Tax Assessment | 0.7 | 0.6 |
Realized foreign exchange net loss on intercompany loans | 0 | (7.4) |
Excess tax benefit from stock-based compensation | (5.3) | 0 |
Miscellaneous | 1.1 | 0.3 |
Income tax benefit as reported | $ (3.5) | $ (7.4) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Jan. 31, 2017 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | ||||
U.S. statutory income tax rate | 35.00% | |||
Income tax benefit | $ (3.5) | $ (7.4) | ||
Realized foreign exchange net loss on intercompany loans | 0 | 7.4 | ||
Income (loss) before income tax | 0.1 | (2.6) | ||
Income Tax Reconciliation Deductions Excess Tax Benefits | $ 5.3 | 0 | ||
State and Local Jurisdiction | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Statutes of limitation, period | 2 years | |||
State and Local Jurisdiction | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Statutes of limitation, period | 5 years | |||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,013 | |||
Foreign Tax Authority | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Statutes of limitation, period | 2 years | |||
Foreign Tax Authority | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Statutes of limitation, period | 5 years | |||
Foreign Tax Authority | Australian Taxation Office | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,012 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Interest Expense | $ 0.7 | $ 0.6 | ||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,011 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2012 | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Contingency, Potential Brazilian Assessment | $ 39.3 | $ 44.5 | ||
Income Tax Contingency, Potential Assessment, Acquisition, Fair Value of Liabilities Accrued | $ 43.3 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Penalty rate | 75.00% | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Penalty rate | 150.00% | |||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,008 | |||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,010 | |||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,010 | |||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,015 | |||
Esselte Group Holdings AB | ||||
Income Tax Examination [Line Items] | ||||
Deferred tax liabilities | $ 85.6 | |||
Deferred tax assets | $ 95.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | ||
Common Stock, Shares, Outstanding | 109,511,073 | 106,998,088 |
Treasury Stock, Shares, Acquired | 700,000 | 700,000 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted-average number of common shares outstanding - basic | 108,300,000 | 106,100,000 |
Weighted-average number of common shares outstanding - diluted | 112,400,000 | 108,200,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 2,300,000 | 7,100,000 |
Stock options | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 1,500,000 | 100,000 |
Stock-settled stock appreciation rights | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 100,000 |
Restricted stock units | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 2,600,000 | 1,900,000 |
Derivative Financial Instrume60
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge | $ 48.3 | $ 52.1 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge | $ 92.6 | $ 76.5 |
Derivative Financial Instrume61
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 1.6 | $ 4.4 |
Derivative Liabilities | 0.6 | 0.3 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.3 | 4 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.4 | 0 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.3 | 0.4 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0.2 | $ 0.3 |
Derivative Financial Instrume62
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivatives not designated as hedging instruments | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | $ (0.8) | $ 0.6 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (1.5) | (3) |
Cash Flow Hedging | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Reclassified from AOCI to Income (Effective Portion) | $ (1.1) | $ (0.7) |
Fair Value Of Financial Instr63
Fair Value Of Financial Instruments Schedule of Fair Value Assets and Liabilities measured on a Recurring Basis (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | $ 1,033 | $ 708.4 |
Foreign currency contracts, assets | 1.6 | 4.4 |
Foreign currency contracts, liabilities | $ 0.6 | $ 0.3 |
Fair Value Of Financial Instr64
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months | |
Total debt | $ 1,030 | $ 703.5 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Rollforward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2016 | $ (419.4) |
Other comprehensive income (loss) before reclassifications, net of tax | 9.9 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0.2 |
Balance at March 31, 2017 | (409.3) |
Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2016 | 2.5 |
Other comprehensive income (loss) before reclassifications, net of tax | (1.2) |
Amounts reclassified from accumulated other comprehensive income, net of tax | (0.7) |
Balance at March 31, 2017 | 0.6 |
Foreign Currency Adjustments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2016 | (285.9) |
Other comprehensive income (loss) before reclassifications, net of tax | 12.5 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 |
Balance at March 31, 2017 | (273.4) |
Unrecognized Pension and Other Post-retirement Benefit Costs | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2016 | (136) |
Other comprehensive income (loss) before reclassifications, net of tax | (1.4) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0.9 |
Balance at March 31, 2017 | $ (136.5) |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products sold | $ (249) | $ (195.7) | |
Income tax (expense) benefit | 3.5 | 7.4 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | (0.2) | (0.2) | |
Unrecognized Pension and Other Post-retirement Benefit Costs | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of actuarial loss included in net income | [1] | (1.1) | (1) |
Amortization of prior service cost | [1] | (0.1) | (0.1) |
Total before tax | (1.2) | (1.1) | |
Income tax (expense) benefit | 0.3 | 0.4 | |
Net of tax | (0.9) | (0.7) | |
Foreign exchange contracts | Derivative Financial Instruments | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products sold | 1.1 | 0.7 | |
Income tax (expense) benefit | (0.4) | (0.2) | |
Net of tax | $ 0.7 | $ 0.5 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for pension and post-retirement plans (See "Note 5. Pension and Other Retiree Benefits" for additional details). |
Information On Business Segme67
Information On Business Segments (Net Sales by Segment) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business segments | 3 | |
Net sales | $ 359.8 | $ 278.1 |
Operating Segment | ACCO Brands North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 174.9 | 179.3 |
Operating Segment | ACCO Brands EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 96.5 | 38.9 |
Operating Segment | ACCO Brands International | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 88.4 | $ 59.9 |
Information On Business Segme68
Information On Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | $ 9.3 | $ 6.5 |
Interest expense | 9.8 | 10.7 | |
Interest income | (1.3) | (1.4) | |
Equity in earnings of joint-venture | 0 | (1.3) | |
Other expense, net | 0.7 | 1.1 | |
Income (loss) before income tax | 0.1 | (2.6) | |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | 21.5 | 15.8 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income | (12.2) | (9.3) | |
ACCO Brands North America | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | 6.6 | 10 | |
ACCO Brands EMEA | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | 4.8 | 0.2 | |
ACCO Brands International | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | $ 10.1 | $ 5.6 | |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Information On Business Segme69
Information On Business Segments Information on Business Segments (Assets by Segments) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 2,698.1 | $ 2,064.5 | |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 912 | 831.7 | |
Operating Segment | ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 380 | 404.3 |
Operating Segment | ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 270.9 | 104 |
Operating Segment | ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 261.1 | 323.4 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,784.5 | 1,232 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 1.6 | $ 0.8 |
[1] | Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint-ventures accounted for on an equity basis. |
Information On Business Segme70
Information On Business Segments Information on Business Segments (including Identifiable Intangibles and Goodwill by Segments) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | $ 2,698.1 | $ 2,064.5 | |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | 2,444.2 | 1,984.5 | |
Operating Segment | ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | [1] | 1,181.4 | 1,206.8 |
Operating Segment | ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | [1] | 698.6 | 155.2 |
Operating Segment | ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | [1] | 564.2 | 622.5 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | 252.3 | 79.2 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Segment Assets including Identifiable Intangible Assets and Goodwill | [1] | $ 1.6 | $ 0.8 |
[1] | Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, and prepaid debt issuance costs. |
Joint-Venture Investment (Detai
Joint-Venture Investment (Details) - Pelikan Artline $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Net sales | $ 26 |
Gross profit | 9.8 |
Net income | $ 2.5 |
Joint-Venture Investment (Narra
Joint-Venture Investment (Narrative) (Details) | May 01, 2016 |
Pelikan Artline | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |