Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 24, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 107,206,084 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 122.7 | $ 76.9 |
Accounts receivable, net | 316.1 | 469.3 |
Inventories | 294.5 | 254.2 |
Other current assets | 51.5 | 29.2 |
Total current assets | 784.8 | 829.6 |
Total property, plant and equipment | 657.1 | 645.2 |
Less: accumulated depreciation | (376.8) | (366.7) |
Property, plant and equipment, net | 280.3 | 278.5 |
Deferred income taxes | 132.9 | 137.9 |
Goodwill | 667.9 | 670.3 |
Identifiable intangibles, net | 838.1 | 839.9 |
Other non-current assets | 50.7 | 42.9 |
Total assets | 2,754.7 | 2,799.1 |
Current liabilities: | ||
Notes payable | 0.7 | 0 |
Current portion of long-term debt | 42 | 43.2 |
Accounts payable | 188.6 | 178.2 |
Accrued compensation | 40.4 | 60.9 |
Accrued customer program liabilities | 98.5 | 141.1 |
Accrued interest | 6.8 | 1.2 |
Other current liabilities | 112.1 | 113.8 |
Total current liabilities | 489.1 | 538.4 |
Long-term debt, net | 908.4 | 889.2 |
Deferred income taxes | 174.8 | 177.1 |
Pension and post-retirement benefit obligations | 268.3 | 275.5 |
Other non-current liabilities | 149.1 | 144.8 |
Total liabilities | 1,989.7 | 2,025 |
Stockholders' equity: | ||
Common stock | 1.1 | 1.1 |
Treasury stock | (33.9) | (26.4) |
Paid-in capital | 1,999.1 | 1,999.7 |
Accumulated other comprehensive loss | (467.4) | (461.1) |
Accumulated deficit | (733.9) | (739.2) |
Total stockholders' equity | 765 | 774.1 |
Total liabilities and stockholders' equity | $ 2,754.7 | $ 2,799.1 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net sales | $ 405.8 | $ 359.8 | |
Cost of products sold | 278.3 | 248.9 | |
Gross profit | 127.5 | 110.9 | |
Operating costs and expenses: | |||
Advertising, selling, general and administrative expenses | 101.8 | 94.2 | |
Amortization of intangibles | 9.3 | 8 | |
Restructuring charges | 4.7 | 1.5 | |
Total operating costs and expenses | 115.8 | 103.7 | |
Operating income | [1] | 11.7 | 7.2 |
Non-operating expense (income): | |||
Interest expense | 9.4 | 9.8 | |
Interest income | (1) | (1.3) | |
Non-operating pension income | (2.2) | (2.1) | |
Other (income) expense, net | (0.6) | 0.7 | |
Income before income tax | 6.1 | 0.1 | |
Income tax benefit | (4.3) | (3.5) | |
Net income | $ 10.4 | $ 3.6 | |
Basic income per share: | |||
Basic income per share | $ 0.10 | $ 0.03 | |
Diluted income per share: | |||
Diluted income per share | $ 0.09 | $ 0.03 | |
Weighted average number of shares outstanding: | |||
Basic | 106.8 | 108.3 | |
Diluted | 110 | 112.4 | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Dividends per common share | $ 0.06 | $ 0 | |
[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, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10.4 | $ 3.6 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized income (loss) on derivative instruments, net of tax (expense) benefit of $(0.3) and $0.7, respectively | 0.6 | (1.9) |
Foreign currency translation adjustments, net of tax (expense) benefit of $(2.7) and $0.0, respectively | (4.3) | 12.5 |
Recognition of deferred pension and other post-retirement items, net of tax benefit of $0.9 and $0.1, respectively | (2.6) | (0.5) |
Other comprehensive (loss) income, net of tax | (6.3) | 10.1 |
Comprehensive income | $ 4.1 | $ 13.7 |
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, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized income (loss) on derivative instruments, net of tax (expense) benefit of $(0.3) and $0.7, respectively | $ 0.3 | $ (0.7) |
Foreign currency translation adjustments, net of tax (expense) benefit of $(2.7) and $0.0, respectively | 2.7 | 0 |
Recognition of deferred pension and other post-retirement items, net of tax benefit of $0.9 and $0.1, respectively | $ 0.9 | $ 0.1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 10.4 | $ 3.6 |
Amortization of inventory step-up | 0 | 0.9 |
Loss on disposal of assets | 0.1 | 0 |
Depreciation | 9 | 9 |
Amortization of debt issuance costs | 0.5 | 1.4 |
Amortization of intangibles | 9.3 | 8 |
Stock-based compensation | 3.2 | 2.4 |
Changes in balance sheet items: | ||
Accounts receivable | 162 | 165.3 |
Inventories | (43.5) | (31.2) |
Other assets | (8) | (0.8) |
Accounts payable | 8.8 | (4.3) |
Accrued expenses and other liabilities | (78.7) | (73.4) |
Accrued income taxes | (12.7) | (15.5) |
Net cash provided by operating activities | 60.4 | 65.4 |
Investing activities | ||
Additions to property, plant and equipment | (8) | (5.2) |
Proceeds from the disposition of assets | 0 | 0.1 |
Cost of acquisitions, net of cash acquired | 0 | (292.6) |
Net cash used by investing activities | (8) | (297.7) |
Financing activities | ||
Proceeds from long-term borrowings | 21.5 | 412 |
Repayments of long-term debt | (11.6) | (94.4) |
Borrowings of notes payable, net | 0.7 | 0 |
Payments for debt issuance costs | 0 | (3.4) |
Dividends paid | (6.4) | 0 |
Repurchases of common stock | (9.1) | 0 |
Payments related to tax withholding for stock-based compensation | (7.4) | (9.2) |
Proceeds from the exercise of stock options | 5.3 | 1.4 |
Net cash (used) provided by financing activities | (7) | 306.4 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0.4 | 1.3 |
Net increase in cash and cash equivalents | 45.8 | 75.4 |
Cash and cash equivalents | ||
Beginning of the period | 76.9 | 42.9 |
End of the period | $ 122.7 | $ 118.3 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , 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, 2017 . The Condensed Consolidated Balance Sheet as of March 31, 2018 , the related Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2017 and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 are unaudited. The December 31, 2017 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 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, 2018 and 2017 , and the financial position of the Company as of March 31, 2018 . 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 financial results of Esselte are included in the Company's condensed consolidated financial statements as of February 1, 2017, and are reflected in all three of the Company's reportable segments. See " Note 3. Acquisition " for details on the Esselte Acquisition. In accordance with the adoption of the accounting standard ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, the Company has retrospectively revised the presentation of the non-service components of periodic pension income/cost to " Non-operating pension income " in the Consolidated Statements of Income . See " Note 2. Recent Accounting Pronouncements " for details on the new standard. 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, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). In December 2017, the Tax Cuts and Jobs Act (the "U.S. Tax Act") was signed into law. Prior to ASU 2018-02, GAAP required deferred tax assets and deferred tax liabilities to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period including the enactment date. The U.S. Tax Act reduces the historical U.S corporate tax rate and the effect of that change is required to be included in income from continuing operations, even if the original tax effects were recorded in Accumulated Other Comprehensive Income ("AOCI"). This could cause some tax effects to become stranded in AOCI as they are not updated to reflect the new tax rate. This new standard allows a company to elect to reclass the stranded tax effects resulting from the U.S. Tax Act from AOCI to retained earnings. The adoption of the new standard may be applied in the period of adoption or retrospectively to each period(s) effected by the change in the corporate tax rate. The Company is currently in the process of evaluating the impact of adoption of ASU 2018-02 on the Company’s consolidated financial statements. ASU 2018-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the standard is permitted including adoption in any interim period for which financial statements have not been issued. In August 2017, the FASB issued ASU No. 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The new standard improves certain aspects of the hedge accounting model, including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. The Company is currently in the process of assessing the impact of adoption of ASU 2017-12 on the Company's consolidated financial statements. The Company will adopt ASU 2017-12 effective with its 2019 fiscal year. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU amends the existing accounting standard for leases. The amendments are intended to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The new standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period, and early application is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements and disclosures, but expects the impact to the Company’s Consolidated Balance Sheets to be significant. At this time, the Company does not expect adoption of ASU 2016-02 to have a material impact on its Consolidated Statements of Income as the majority of its leases will remain operating in nature. The Company is in the process of analyzing existing leases, practical expedients, and deploying its implementation strategy. The Company will adopt ASU 2016-02 at the beginning of its 2019 fiscal year. Other than the items mentioned above, there are no other recently issued accounting standards that are expected to have a material effect on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards On January 1, 2018, we adopted the accounting standard ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new standard requires presentation of all components of net periodic pension and postretirement benefit costs, other than service costs, in an income statement line item outside of a subtotal of income from operations. The service cost component will continue to be presented in the same line item as other employee compensation costs. The Company used the practical expedient which permits an employer to use the amounts disclosed in its pension disclosures as the basis for applying the retrospective presentation requirements. On this basis, the Company restated its operating income which was reduced by $8.5 million for the year ended December 31, 2017 and $2.1 million for the three months ended March 31, 2017 . On January 1, 2018, we adopted the accounting standard ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (Topic 606) and applied it to contracts which were not completed as of January 1, 2018 using the modified retrospective method. A completed contract is one where all (or substantially all) of the revenue was recognized in accordance with the revenue guidance that was in effect before the date of initial application of ASU 2014-09. We recognized the cumulative effect of $1.6 million , net of tax, upon adopting ASU 2014-09 as an addition to opening retained earnings as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The majority of our revenue is recognized at a point in time, when control is transferred to our customer, which is usually when products are shipped or delivered based upon the specific terms contained within the agreement. Our general payment terms are usually within 30 - 90 days. We do not have any significant financing components. The cumulative effect of the changes on our January 1, 2018 opening Condensed Consolidated Balance Sheet due to the adoption of ASU 2014-09 were as follows: (in millions of dollars) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets: Inventories $ 254.2 $ (3.5 ) $ 250.7 Other current assets 29.2 6.9 36.1 Liabilities and stockholders' equity: Accrued customer program liabilities 141.1 1.1 142.2 Other current liabilities 113.8 0.1 113.9 Deferred income taxes 177.1 0.6 177.7 Accumulated deficit (739.2 ) 1.6 (737.6 ) The impact of the adoption of ASU 2014-09 on our Consolidated Statements of Income and Condensed Consolidated Balance Sheet for the three -month period ended March 31, 2018 was as follows: Three Months Ended March 31, 2018 (in millions of dollars) As Reported Balances without adoption of ASU 2014-09 Effect of Change Higher/(Lower) Consolidated Statements of Income: Net sales $ 405.8 $ 405.7 $ 0.1 Cost of products sold 278.3 278.4 (0.1 ) Net income 10.4 10.2 0.2 Condensed Consolidated Balance Sheet: Assets: Accounts receivable, net 316.1 313.8 2.3 Inventories 294.5 297.3 (2.8 ) Other current assets 51.5 44.4 7.1 Liabilities and stockholders' equity: Accrued customer program liabilities 98.5 97.9 0.6 Other current liabilities 112.1 108.5 3.6 Deferred income taxes 174.8 174.2 0.6 Accumulated deficit (733.9 ) (735.7 ) 1.8 See " Note 5. Revenue Recognition " for the required disclosures related to ASU 2014-09. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisition On January 31, 2017 , ACCO Europe Limited ("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 consumer and office products. Esselte takes products to market under the Leitz ® , Rapid ® and Esselte ® brands in the storage and organization, stapling, punching, business machines and do-it-yourself tools product categories. The combination improved ACCO Brands’ scale and enhanced 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 was subject to a working capital adjustment that reduced it by $0.3 million . The purchase price, net of cash acquired of $34.2 million , was $292.3 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. For accounting purposes, the Company is the acquiring enterprise. The Esselte Acquisition is being accounted for as a purchase combination and Esselte's results are included in the Company’s condensed consolidated financial statements as of February 1, 2017. Esselte contributed approximately $44.2 million of net sales for the month ended January 31, 2018. The following table presents the 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 adjustment $ 326.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 121.9 Deferred tax liabilities 83.6 Pension obligations 174.1 Other non-current liabilities 5.8 Fair value of liabilities assumed $ 385.4 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.0 Inventory 41.9 Property, plant and equipment 75.6 Identifiable intangibles 277.0 Deferred tax assets 106.3 Other assets 10.4 Fair value of assets acquired $ 605.4 Goodwill $ 106.5 In the fourth quarter of 2017, we finalized our fair value estimate of assets acquired and liabilities assumed as of the acquisition date. No additional adjustments to the goodwill related to the Esselte Acquisition will be recognized. The excess of the purchase price over the fair value of net assets acquired was allocated to goodwill. The goodwill of $106.5 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. During the three months ended March 31, 2017 , transaction costs related to the Esselte Acquisition were $2.1 million . For the year ended December 31, 2017 , transaction costs totaled $5.0 million . These costs were reported as selling, general and administrative expenses. |
Long-Term Debt And Short-Term B
Long-Term Debt And Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Short-Term Borrowings | 4. Long-term Debt and Short-term Borrowings Notes payable and long-term debt, listed in order of the priority of security interests in assets of the Company, consisted of the following as of March 31, 2018 and December 31, 2017 : (in millions of dollars) March 31, December 31, Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at March 31, 2018 and 1.50% at December 31, 2017) $ 350.6 $ 345.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.44% at March 31, 2018 and 3.29% at December 31, 2017) 58.3 60.0 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.57% at March 31, 2018 and 3.53% at December 31, 2017) 56.5 48.9 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.40% at March 31, 2018 and 3.28% at December 31, 2017) 91.4 85.0 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 400.0 Other borrowings 1.2 0.6 Total debt 958.0 939.5 Less: Current portion 42.8 43.2 Debt issuance costs, unamortized 6.8 7.1 Long-term debt, net $ 908.4 $ 889.2 In connection with 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 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, a A$80.0 million ( US$60.4 million based on January 27, 2017 exchange rates) term loan facility, and a US$400.0 million multi-currency revolving credit facility (the "2017 Revolving Facility"). As of March 31, 2018 , there were $147.9 million in borrowings outstanding under the 2017 Revolving Facility. The remaining amount available for borrowings was $239.5 million (allowing for $12.6 million of letters of credit outstanding on that date). As more fully described in the Company's 2017 Annual Report on Form 10-K, we must meet certain restrictive debt covenants under the senior secured credit facilities. The indenture governing our outstanding senior unsecured notes also contains certain covenants. As of and for the periods ended March 31, 2018 and December 31, 2017 , the Company was in compliance with all applicable loan covenants. |
Revenue Reccognition
Revenue Reccognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 5. Revenue Recognition On January 1, 2018, the Company adopted the accounting standard ASU 2014-09, Revenue from Contracts with Customers and all related amendments (Topic 606), applying the modified retrospective transition method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under ASU 2014-09, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net increase to beginning retained earnings of $1.6 million as of January 1, 2018 due to the cumulative impact of adopting ASU 2014-09. The impact to revenues for the three months ended March 31, 2018 was immaterial as a result of adopting ASU 2014-09. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount reflective of the consideration we expect to be receive in exchange for those goods or services. Taxes we collect concurrent with revenue producing activities are excluded from revenue. Incidental items incurred that are immaterial in the context of the contract are expensed. We have elected the practical expedient to not disclose contracts that have a term of 1 year or less. Performance Obligations At the inception of each contract, the Company assesses the products and services promised and identifies each distinct performance obligation. To identify the performance obligations, the Company considers all products and services promised regardless of whether they are explicitly stated or implied within the contract or by standard business practices. Freight and distribution activities performed before the customer obtains control of the goods are not considered promised services under customer contracts and therefore are not distinct performance obligations. The Company has chosen to make an accounting policy election to account for shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment activity, and therefore accrues the expense of freight and distribution in Cost of products sold when product is shipped. Nature of our Products and Services Products : For our products, we transfer control and recognize a sale when we either ship the product from our manufacturing facility or distribution center, procure the product from one of our vendors or upon delivery to a customer specified location depending upon the terms in the customer agreement. For consignment arrangements, revenue is not recognized until the products are sold to the end customer. The amount of consideration we receive and revenue we recognize is impacted by incentives ("Customer Program Costs"), including sales rebates; which are generally tied to achievement of certain sales volume levels, in-store promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements; and freight allowance programs, offered to our customers; and allowance for returns and discounts. We generally recognize Customer Program Costs as a deduction to gross sales at the time that the associated revenue is recognized. We estimate discounts based upon an analysis of historical trends and record as reductions to " Net sales " and " Accounts receivable, net ". We estimate and record a returns reserve, on a gross basis, as a reduction to " Net sales " and " Cost of products sold " with increases to " Other current liabilities " and " Inventories ." We adjust our estimate of revenue when the most likely amount of consideration we expect to receive changes. Service or Extended Maintenance Agreements ("EMAs"): Depending on the terms of a customer agreement, we may defer recognition of a portion of the consideration received because we have to satisfy a future obligation (e.g. EMAs). We use an observable price to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach, for our separately priced service/maintenance agreements that extend mechanical and maintenance coverage beyond our base warranty coverage to our Print Finishing Solutions ("PFS") customers. These agreements range in duration from three months to 60 months, but are primarily one year or less. We receive payment at inception of the EMAs and recognize revenue over the term of the agreement on a straight line basis or bill on a monthly/quarterly basis. As of January 1, 2018, $5.2 million of unearned revenue associated with outstanding contracts was primarily reported in " Other current liabilities ". $3.9 million of unearned revenue was recognized during the three months ended March 31, 2018 . As of March 31, 2018 , the amount of unearned revenue was $5.0 million . We expect to recognize approximately $4.3 million of the unearned amount in the next 12 months and $0.7 million in future periods beyond the next 12 months. Disaggregation of Revenues In accordance with ASU 2014-09, the following table disaggregates revenue from contracts with customers into regional geographies. The Company has determined that disaggregating revenue into these categories provides appropriate disclosure and achieves associated objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table presents our revenue disaggregated by regional geography (1) , based upon our reporting segments for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, (in millions of dollars) 2018 2017 United States $ 144.4 $ 154.7 Canada 21.2 20.2 ACCO Brands North America 165.6 174.9 ACCO Brands EMEA (2) 154.5 96.5 Australia/N.Z. 39.8 43.2 Latin America 33.5 33.2 Asia-Pacific 12.4 12.0 ACCO Brands International 85.7 88.4 Net sales $ 405.8 $ 359.8 (1) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. (2) ACCO Brands EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. The following table presents our revenue disaggregated by the timing of revenue recognition for the three months ended March 31, 2018 : Three Months Ended March 31, (in millions of dollars) 2018 Product and Services transferred at a point in time $ 391.4 Product and Services transferred over time 14.4 Net sales $ 405.8 |
Pension And Other Retiree Benef
Pension And Other Retiree Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension And Other Retiree Benefits | 6. 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, 2018 and 2017 were as follows: Three Months Ended March 31, Pension Post-retirement U.S. International (in millions of dollars) 2018 2017 2018 2017 2018 2017 Service cost $ 0.4 $ 0.3 $ 0.5 $ 0.3 $ — $ — Interest cost 1.7 1.8 3.4 2.9 — — Expected return on plan assets (2.9 ) (3.1 ) (5.9 ) (4.9 ) — — Amortization of net loss (gain) 0.6 0.5 0.9 0.7 (0.1 ) (0.1 ) Amortization of prior service cost (credit) 0.1 0.1 — — — — Net periodic benefit (income) expense (1) $ (0.1 ) $ (0.4 ) $ (1.1 ) $ (1.0 ) $ (0.1 ) $ (0.1 ) (1) The components, other than service cost, are included in the line " Non-operating pension income " in the Consolidated Statements of Income . We expect to contribute approximately $20.3 million to our defined benefit plans in 2018 . For the three months ended March 31, 2018 , we have already contributed $11.3 million to these plans. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 7. 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, 2018 and 2017 : Three Months Ended March 31, (in millions of dollars) 2018 2017 Stock option compensation expense $ 0.5 $ 0.6 RSU compensation expense 0.9 1.0 PSU compensation expense 1.8 0.8 Total stock-based compensation expense $ 3.2 $ 2.4 We generally recognize compensation expense for stock-based awards ratably over the vesting period. During the first quarter of 2018, the Company's Board of Directors approved a stock compensation grant which consisted of 769,477 stock options, 387,789 RSUs and 747,996 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, 2018 : March 31, 2018 Unrecognized Weighted Average Compensation Years Expense To Be (in millions of dollars, except weighted average years) Expense Recognized Over Stock options $5.0 2.6 RSUs $8.6 2.4 PSUs $17.8 2.1 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories The components of inventories were as follows: (in millions of dollars) March 31, December 31, Raw materials $ 45.3 $ 38.2 Work in process 4.5 4.1 Finished goods 244.7 211.9 Total inventories $ 294.5 $ 254.2 |
Goodwill And Identifiable Intan
Goodwill And Identifiable Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Identifiable Intangibles | 9. Goodwill and Identifiable Intangible Assets Goodwill As more fully described in the Company’s 2017 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 2017 and concluded that no impairment existed. 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, 2017 $ 375.6 $ 129.4 $ 165.3 $ 670.3 Translation — (2.4 ) — (2.4 ) Balance at March 31, 2018 $ 375.6 $ 127.0 $ 165.3 $ 667.9 The goodwill balance is net of $215.1 million of accumulated impairment losses. Identifiable Intangible Assets The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 603.1 $ (44.5 ) (1) $ 558.6 $ 599.5 $ (44.5 ) (1) $ 555.0 Amortizable intangible assets: Trade names 196.6 (62.1 ) 134.5 195.3 (59.4 ) 135.9 Customer and contractual relationships 245.4 (105.7 ) 139.7 243.0 (99.3 ) 143.7 Patents 5.9 (0.6 ) 5.3 5.8 (0.5 ) 5.3 Subtotal 447.9 (168.4 ) 279.5 444.1 (159.2 ) 284.9 Total identifiable intangibles $ 1,051.0 $ (212.9 ) $ 838.1 $ 1,043.6 $ (203.7 ) $ 839.9 (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 $9.3 million and $8.0 million for the three months ended March 31, 2018 and 2017 , respectively. Estimated amortization expense for amortizable intangible assets as of March 31, 2018 for the current year and the next five years are as follows: (in millions of dollars) 2018 2019 2020 2021 2022 2023 Estimated amortization expense (2) $ 34.3 $ 30.8 $ 27.3 $ 23.8 $ 20.3 $ 18.2 (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 2017 and concluded that no impairment existed. For the Mead ® indefinite-lived trade name that is not substantially above its carrying values, we performed a quantitative test in the second quarter of 2017. A 1.5% long-term growth rate and a 10.5% discount rate were used. We concluded that the Mead ® trade name was not impaired. The fair value of the Mead ® trade name was less than 30% above its carrying value as of the second quarter of 2017 test. As of March 31, 2018 , the carrying value of the Mead ® trade name was $113.3 million . |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 10. Restructuring During the first quarter of 2018, the Company recorded restructuring expenses of $4.7 million , primarily related to additional changes to the operating structure of the ACCO Brands North America segment and the continued integration of Esselte within the ACCO Brands EMEA segment. Not included in these numbers are exit costs and liabilities associated with exiting a leased facility of $2.4 million and a contract related termination of $0.1 million that were not recorded yet, pursuant to GAAP rules. During 2017, cost savings initiatives undertaken by the Company in 2016 to further enhance its operations in the ACCO Brands North America segment were expanded to include the realignment of the operating structure of our former Computer Products Group and other projects to enhance the future long-term performance of the North America business. For the three months ended March 31, 2018 and 2017 , we recorded restructuring charges of $4.7 million and $1.5 million , respectively. The summary of the activity in the restructuring account for the three months ended March 31, 2018 was as follows: (in millions of dollars) Balance at December 31, 2017 Provision Cash Non-cash Balance at March 31, 2018 Employee termination costs (1) $ 12.0 $ 3.8 $ (2.6 ) $ 0.3 $ 13.5 Termination of lease agreements (2) 0.8 0.9 (0.7 ) — 1.0 Other (3) 0.5 — (0.1 ) (0.1 ) 0.3 Total restructuring liability $ 13.3 $ 4.7 $ (3.4 ) $ 0.2 $ 14.8 (1) We expect the remaining $13.5 million employee termination costs to be substantially paid in the next fifteen months. (2) We expect the remaining $1.0 million termination of lease costs to be substantially paid in the next twelve months. (3) We expect the remaining $0.3 million of other costs, principally contract exit costs, to be substantially paid in the next nine months. The summary of the activity in the restructuring account for the three months ended March 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Esselte Acquisition (4) Provision Cash Balance at March 31, 2017 Employee termination costs $ 1.4 $ 1.4 $ 1.3 $ (0.4 ) $ 3.7 Termination of lease agreements 0.1 2.0 0.2 (0.1 ) 2.2 Other — 0.1 — (0.1 ) — Total restructuring liability $ 1.5 $ 3.5 $ 1.5 $ (0.6 ) $ 5.9 (4) Restructuring liabilities assumed in the Esselte Acquisition. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The reconciliation of income taxes for the three months ended March 31, 2018 and 2017 , 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) 2018 2017 Income tax expense computed at U.S. statutory income tax rate (21% and 35%, respectively) $ 1.3 $ — Interest on Brazilian Tax Assessment 0.3 0.7 Partial release of reserve for the Brazilian Tax Assessment (5.6 ) — Excess tax benefit from stock-based compensation (2.5 ) (5.3 ) Net operating losses not benefited 1.0 0.4 Miscellaneous 1.2 0.7 Income tax benefit as reported $ (4.3 ) $ (3.5 ) Effective tax rate NM NM For the three months ended March 31, 2018 , we recorded an income tax benefit of $4.3 million on income before taxes of $6.1 million . The net tax benefit for the three months ended March 31, 2018 was primarily due to (1) the partial release of $5.6 million of the reserve for the Brazil Tax Assessment (see below) due to the expiration of the statute of limitations, and (2) excess tax benefit of $2.5 million from the realization of stock-based compensation related tax deductions. Additionally, the low effective tax rate for 2018 includes tax impacts attributable to the U.S. Tax Act, which was signed into law on December 22, 2017. 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. The U.S. federal statute of limitations remains open for the year 2014 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 ( 2013 forward), Brazil ( 2012 forward), Canada ( 2009 forward), Germany ( 2011 forward), Sweden ( 2011 forward) and the U.K. ( 2016 forward). We are currently under examination in certain foreign jurisdictions. Tax Reform On December 22, 2017, the U.S. Tax Act was signed into law. The U.S. Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (i) reducing the future U.S. federal corporate tax rate from 35 percent to 21 percent; (ii) requiring companies to pay a one-time transition tax on certain undistributed earnings of foreign subsidiaries (the "Transition Toll Tax"); and (iii) bonus depreciation that will allow for full expensing of qualified property. The U.S. Tax Act also established new tax laws that will affect 2018, including, but not limited to: (i) the reduction of the U.S. federal corporate tax rate discussed above; (ii) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (iii) a new provision designed to tax global intangible low-taxed income ("GILTI"); (iv) the repeal of the domestic production activity deductions; (v) limitations on the deductibility of certain executive compensation; (vi) limitations on the use of foreign tax credits to reduce the U.S. income tax liability; and (vii) a new provision that allows a domestic corporation an immediate deduction for a portion of its foreign derived intangible income ("FDII"). The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of the U.S. Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the related accounting under ASC 740, Accounting for Income Taxes . In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the U.S. Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for a certain income tax effect of the U.S. Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the U.S. Tax Act. The Company’s accounting for certain components of the U.S. Tax Act is not complete. However, the Company was able to make reasonable estimates of the effects and recorded provisional estimates for these items. Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, during the year ended December 31, 2017, we recorded a net tax benefit totaling $25.7 million related to our provisional estimate of the impact of the U.S. Tax Act. The benefit consists of an expense of $24.0 million , net of foreign tax credit carryforwards of $14.0 million , for the one-time Transition Toll Tax and a net benefit of $49.7 million in connection with the revaluation of the deferred tax assets and liabilities resulting from the decrease in the U.S. corporate tax rate. During the three months ended March 31, 2018 , we have made no adjustments to the provisional amounts recorded at December 31, 2017. However, the ultimate impact of the U.S. Tax Act may differ from the current estimates, possibly materially, due to changes in interpretations and assumptions the Company has made, future guidance that may be issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies, or actions the Company may take. Adjustments to the provisional amounts may materially affect our provision for income taxes and effective tax rate in the period in which the adjustments are made. Accounting for the tax effects of the U.S. Tax Act will be completed prior to December 31, 2018. Income Tax Assessment - Tilibra 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 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 (the "First Assessment"). 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 (the "Second Assessment"). Tilibra is disputing both of the tax assessments. Recently, the final administrative appeal of the Second Assessment was decided against the Company. We intend to challenge this decision in court. In connection with the judicial challenge, we are required to post security to guarantee payment of the Second Assessment, which represents $24.6 million of the current reserve, should we not prevail. The First Assessment is still being challenged 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. 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 2012 tax year remains open and subject to audit, and there can be no assurances that we will not receive additional tax assessments regarding the goodwill for 2012. The time limit for issuing an assessment for 2012 will expire in January 2019. 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 in connection with the First Assessment, based on the facts in our case and existing precedent, we believe the likelihood of a 150% penalty is not more likely than not as of March 31, 2018 . 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. The time limit for issuing an assessment for 2011 expired in January 2018 and we did not receive an assessment; we have therefore reversed $5.6 million of reserves related to 2011. During the three months ended March 31, 2018 and 2017 , we accrued additional interest as a charge to current income tax expense of $0.3 million and $0.7 million , respectively. At current exchange rates, our accrual through March 31, 2018 , including tax, penalties and interest is $33.4 million . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings per Share Total outstanding shares as of March 31, 2018 and 2017 were 107.8 million and 109.5 million , respectively. Under our stock repurchase program, for the three months ended March 31, 2018 we repurchased and retired 0.8 million shares. No shares were repurchased during the three months ended March 31, 2017 . For each of the three months ended March 31, 2018 and 2017 , we acquired 0.6 million and 0.7 million shares, respectively related to tax withholding for share-based compensation. The calculation of basic earnings per share of common stock is based on the weighted average number of shares of common stock outstanding in the year, or period, over which they were outstanding. Our calculation of diluted earnings per share of common stock assumes that any shares of common stock 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) 2018 2017 Weighted-average number of shares of common stock outstanding - basic 106.8 108.3 Stock options 1.2 1.5 Restricted stock units 2.0 2.6 Adjusted weighted-average shares and assumed conversions — diluted 110.0 112.4 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, 2018 and 2017 , the number of anti-dilutive shares were approximately 2.8 million and 2.3 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 13. 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, Swedish krona, 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 (the Euro, the Swedish krona and the British pound), Australia, Canada, Brazil, and Mexico. 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 are deferred in accumulated other comprehensive income (loss) ("AOCI") until the contracts are settled and the underlying hedged transactions relating to inventory purchases 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, 2018 and December 31, 2017 , we had cash-flow-designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $119.9 million and $93.5 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 (income) expense, net " in the " Consolidated Statements of Income " and are largely offset by the change in the current translated value of the hedged item. The periods of the forward foreign exchange contracts correspond to the periods of the hedged transactions, and do not extend beyond March 2019 , except for one relating to intercompany loans which extends to December 2020. As of March 31, 2018 and December 31, 2017 , we had undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $96.1 million and $95.0 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of March 31, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet March 31, 2018 December 31, Balance Sheet March 31, 2018 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.8 $ 0.5 Other current liabilities $ 0.7 $ 0.5 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.4 Other current liabilities 1.2 0.7 Foreign exchange contracts Other non-current assets 32.2 24.2 Other non-current liabilities 32.2 24.2 Total derivatives $ 34.4 $ 25.1 $ 34.1 $ 25.4 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, 2018 and 2017 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss Three Months Ended March 31, Three Months Ended March 31, (in millions of dollars) 2018 2017 2018 2017 Cash flow hedges: Foreign exchange contracts $ (0.3 ) $ (1.5 ) Cost of products sold $ 1.2 $ (1.1 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss Three Months Ended March 31, (in millions of dollars) 2018 2017 Foreign exchange contracts Other (income) expense, net $ 0.4 $ (0.8 ) |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | 14. 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 described in " Note 13. Derivative Financial Instruments " 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, 2018 and December 31, 2017 : (in millions of dollars) March 31, December 31, Assets: Forward currency contracts $ 34.4 $ 25.1 Liabilities: Forward currency contracts $ 34.1 $ 25.4 Our forward currency contracts are included in " Other current assets ," " Other non-current assets ," " Other current liabilities " or " Other non-current liabilities " and do not extend beyond March 2019 , except for one which extends to December 2020. The forward foreign currency exchange contracts are primarily valued based on the foreign currency spot and forward rates quoted by 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 $958.0 million and $939.5 million and the estimated fair value of total debt was $960.0 million and $951.5 million at March 31, 2018 and December 31, 2017 , 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, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 15. Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) 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, 2017 $ 0.2 $ (305.4 ) $ (155.9 ) $ (461.1 ) Other comprehensive loss before reclassifications, net of tax (0.3 ) (4.3 ) (3.8 ) (8.4 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.9 — 1.2 2.1 Balance at March 31, 2018 $ 0.8 $ (309.7 ) $ (158.5 ) $ (467.4 ) The reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (in millions of dollars) Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Details about Accumulated Other Comprehensive Income Components (Loss) gain on cash flow hedges: Foreign exchange contracts $ (1.2 ) $ 1.1 Cost of products sold Tax benefit (expense) 0.3 (0.4 ) Income tax benefit Net of tax $ (0.9 ) $ 0.7 Defined benefit plan items: Amortization of actuarial loss $ (1.4 ) $ (1.1 ) (1) Amortization of prior service cost (0.1 ) (0.1 ) (1) Total before tax (1.5 ) (1.2 ) Tax benefit 0.3 0.3 Income tax benefit Net of tax $ (1.2 ) $ (0.9 ) Total reclassifications for the period, net of tax $ (2.1 ) $ (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 6. Pension and Other Retiree Benefits " for additional details). |
Information On Business Segment
Information On Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 16. Information on Business Segments The Company has three operating business segments each of which is comprised of different geographic regions. The Company's three 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/N.Z., Latin America and Asia-Pacific Each of the Company's three operating segments designs, markets, sources, manufactures and sells recognized consumer and end-user demanded brands used in businesses, schools and homes. Product designs are tailored based on end-user preferences in each geographic region. Our product categories include storage and organization; stapling; punching; laminating, binding and shredding machines and related consumable supplies; whiteboards; notebooks; calendars; computer accessories; and do-it-yourself tools, among others. Our portfolio of consumer and end-user demanded brands includes both globally and regionally recognized brands. ACCO Brands North America The ACCO Brands North America segment is comprised of the United States and Canada where the Company is a leading branded supplier of consumer and business products under brands such as AT-A-GLANCE ® , Five Star ® , GBC ® , Hilroy ® , Kensington ® , Mead ® , Quartet ® , and Swingline ® . The ACCO Brands North America segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, and computer accessories, among others, which are primarily used in schools, homes and businesses. The majority of revenue in this segment is related to consumer and home products and is associated with the "back-to-school" season and calendar year-end purchases; we expect sales of consumer products to become an increasingly greater percentage of our revenue as they are faster growing than most business-related products. ACCO Brands EMEA The ACCO Brands EMEA segment is comprised largely of Europe, but also includes export sales to the Middle East and Africa. The Company is a leading branded supplier of consumer and business products under brands such as Derwent ® , Esselte ® , GBC ® , Kensington ® , Leitz ® , NOBO ® , Rapid ® , and Rexel ® . The ACCO Brands EMEA segment designs, manufactures or sources and distributes storage and organization products (such as lever-arch binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, do-it-yourself tools, and computer accessories, among others, which are primarily used in businesses, homes and schools. ACCO Brands International The ACCO Brands International segment is comprised of Australia/N.Z., Latin America and Asia-Pacific where the Company is a leading branded supplier of consumer and business products under brands such as Artline ® , GBC ® , Kensington ® , Marbig ® , Quartet ® , Rexel ® , Tilibra ® , and Wilson Jones ® , among others. The ACCO Brands International segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, writing instruments, and janitorial supplies, among others, which are primarily used in businesses, schools and homes. The majority of revenue in this segment is related to consumer products and is associated with the "back-to-school" season and calendar year-end purchases; we expect sales of consumer products to become an increasingly greater percentage of our revenue as they are faster growing than most business-related products. Customers We distribute our products through a wide variety of retail and commercial channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop. These channels include mass retailers; e-tailers; discount, drug/grocery and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; and contract stationers. We also sell directly to commercial and consumer end-users through our e-commerce platform and our direct sales organization. Net sales by business segment for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, (in millions of dollars) 2018 2017 ACCO Brands North America $ 165.6 $ 174.9 ACCO Brands EMEA 154.5 96.5 ACCO Brands International 85.7 88.4 Net sales $ 405.8 $ 359.8 Operating income by business segment for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, (in millions of dollars) 2018 2017 ACCO Brands North America $ 2.9 $ 5.8 ACCO Brands EMEA 14.1 3.6 ACCO Brands International 5.8 10.1 Segment operating income 22.8 19.5 Corporate (11.1 ) (12.3 ) Operating income (1) 11.7 7.2 Interest expense 9.4 9.8 Interest income (1.0 ) (1.3 ) Non-operating pension income (2.2 ) (2.1 ) Other (income) expense, net (0.6 ) 0.7 Income before income tax $ 6.1 $ 0.1 (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. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
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 the Mead C&OP business, we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). For further information see, " Note 11. Income Taxes - Income Tax Assessment - Tilibra " for details on tax assessments issued by the FRD against Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the years 2007 through 2010. Other Pending Litigation We are party to various lawsuits and regulatory proceedings, primarily related to alleged patent infringement and employee terminations as well as other claims incidental to our business. In addition, we may be unaware of third party claims of intellectual property infringement relating to our technology, brands or products and we may face other claims related to business operations. Any litigation regarding patents or other intellectual property could be costly and time-consuming and might require us to pay monetary damages or enter into costly license agreements. We also may be subject to injunctions against development and sale of certain of our products. It is the opinion of management that (other than the Brazilian Tax Assessment) the ultimate resolution of currently outstanding matters will not have a material adverse effect on our 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. Further, future claims, lawsuits and legal proceedings could materially and adversely affect our business, reputation, results of operations and financial condition. 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. This includes environmental laws and regulations that affect the design and composition of certain of our products. 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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 18. Subsequent Events On May 1, 2018 , the Company's Board of Directors declared a cash dividend of $0.06 per share on its common stock. The dividend is payable on June 20, 2018 to stockholders of record as of the close of business on June 1, 2018 . The declaration and payment of future dividends will be at the discretion of the Board of Directors and will be dependent upon, among other things, the Company's financial position, results of operations, cash flows, debt covenant compliance, anticipated liquidity needs, and other factors. |
Recent Accounting Pronounceme25
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements | The cumulative effect of the changes on our January 1, 2018 opening Condensed Consolidated Balance Sheet due to the adoption of ASU 2014-09 were as follows: (in millions of dollars) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets: Inventories $ 254.2 $ (3.5 ) $ 250.7 Other current assets 29.2 6.9 36.1 Liabilities and stockholders' equity: Accrued customer program liabilities 141.1 1.1 142.2 Other current liabilities 113.8 0.1 113.9 Deferred income taxes 177.1 0.6 177.7 Accumulated deficit (739.2 ) 1.6 (737.6 ) The impact of the adoption of ASU 2014-09 on our Consolidated Statements of Income and Condensed Consolidated Balance Sheet for the three -month period ended March 31, 2018 was as follows: Three Months Ended March 31, 2018 (in millions of dollars) As Reported Balances without adoption of ASU 2014-09 Effect of Change Higher/(Lower) Consolidated Statements of Income: Net sales $ 405.8 $ 405.7 $ 0.1 Cost of products sold 278.3 278.4 (0.1 ) Net income 10.4 10.2 0.2 Condensed Consolidated Balance Sheet: Assets: Accounts receivable, net 316.1 313.8 2.3 Inventories 294.5 297.3 (2.8 ) Other current assets 51.5 44.4 7.1 Liabilities and stockholders' equity: Accrued customer program liabilities 98.5 97.9 0.6 Other current liabilities 112.1 108.5 3.6 Deferred income taxes 174.8 174.2 0.6 Accumulated deficit (733.9 ) (735.7 ) 1.8 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the 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 adjustment $ 326.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 121.9 Deferred tax liabilities 83.6 Pension obligations 174.1 Other non-current liabilities 5.8 Fair value of liabilities assumed $ 385.4 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.0 Inventory 41.9 Property, plant and equipment 75.6 Identifiable intangibles 277.0 Deferred tax assets 106.3 Other assets 10.4 Fair value of assets acquired $ 605.4 Goodwill $ 106.5 |
Long-Term Debt And Short-Term27
Long-Term Debt And Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes payable and long-term debt, listed in order of the priority of security interests in assets of the Company, consisted of the following as of March 31, 2018 and December 31, 2017 : (in millions of dollars) March 31, December 31, Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at March 31, 2018 and 1.50% at December 31, 2017) $ 350.6 $ 345.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.44% at March 31, 2018 and 3.29% at December 31, 2017) 58.3 60.0 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.57% at March 31, 2018 and 3.53% at December 31, 2017) 56.5 48.9 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.40% at March 31, 2018 and 3.28% at December 31, 2017) 91.4 85.0 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 400.0 Other borrowings 1.2 0.6 Total debt 958.0 939.5 Less: Current portion 42.8 43.2 Debt issuance costs, unamortized 6.8 7.1 Long-term debt, net $ 908.4 $ 889.2 |
Revenue Reccognition (Tables)
Revenue Reccognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by regional geography (1) , based upon our reporting segments for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, (in millions of dollars) 2018 2017 United States $ 144.4 $ 154.7 Canada 21.2 20.2 ACCO Brands North America 165.6 174.9 ACCO Brands EMEA (2) 154.5 96.5 Australia/N.Z. 39.8 43.2 Latin America 33.5 33.2 Asia-Pacific 12.4 12.0 ACCO Brands International 85.7 88.4 Net sales $ 405.8 $ 359.8 (1) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. (2) ACCO Brands EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. The following table presents our revenue disaggregated by the timing of revenue recognition for the three months ended March 31, 2018 : Three Months Ended March 31, (in millions of dollars) 2018 Product and Services transferred at a point in time $ 391.4 Product and Services transferred over time 14.4 Net sales $ 405.8 |
Pension And Other Retiree Ben29
Pension And Other Retiree Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [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, 2018 and 2017 were as follows: Three Months Ended March 31, Pension Post-retirement U.S. International (in millions of dollars) 2018 2017 2018 2017 2018 2017 Service cost $ 0.4 $ 0.3 $ 0.5 $ 0.3 $ — $ — Interest cost 1.7 1.8 3.4 2.9 — — Expected return on plan assets (2.9 ) (3.1 ) (5.9 ) (4.9 ) — — Amortization of net loss (gain) 0.6 0.5 0.9 0.7 (0.1 ) (0.1 ) Amortization of prior service cost (credit) 0.1 0.1 — — — — Net periodic benefit (income) expense (1) $ (0.1 ) $ (0.4 ) $ (1.1 ) $ (1.0 ) $ (0.1 ) $ (0.1 ) (1) The components, other than service cost, are included in the line " Non-operating pension income " in the Consolidated Statements of Income . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : Three Months Ended March 31, (in millions of dollars) 2018 2017 Stock option compensation expense $ 0.5 $ 0.6 RSU compensation expense 0.9 1.0 PSU compensation expense 1.8 0.8 Total stock-based compensation expense $ 3.2 $ 2.4 |
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, 2018 : March 31, 2018 Unrecognized Weighted Average Compensation Years Expense To Be (in millions of dollars, except weighted average years) Expense Recognized Over Stock options $5.0 2.6 RSUs $8.6 2.4 PSUs $17.8 2.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: (in millions of dollars) March 31, December 31, Raw materials $ 45.3 $ 38.2 Work in process 4.5 4.1 Finished goods 244.7 211.9 Total inventories $ 294.5 $ 254.2 |
Goodwill And Identifiable Int32
Goodwill And Identifiable Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 $ 375.6 $ 129.4 $ 165.3 $ 670.3 Translation — (2.4 ) — (2.4 ) Balance at March 31, 2018 $ 375.6 $ 127.0 $ 165.3 $ 667.9 |
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, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 603.1 $ (44.5 ) (1) $ 558.6 $ 599.5 $ (44.5 ) (1) $ 555.0 Amortizable intangible assets: Trade names 196.6 (62.1 ) 134.5 195.3 (59.4 ) 135.9 Customer and contractual relationships 245.4 (105.7 ) 139.7 243.0 (99.3 ) 143.7 Patents 5.9 (0.6 ) 5.3 5.8 (0.5 ) 5.3 Subtotal 447.9 (168.4 ) 279.5 444.1 (159.2 ) 284.9 Total identifiable intangibles $ 1,051.0 $ (212.9 ) $ 838.1 $ 1,043.6 $ (203.7 ) $ 839.9 (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, 2018 for the current year and the next five years are as follows: (in millions of dollars) 2018 2019 2020 2021 2022 2023 Estimated amortization expense (2) $ 34.3 $ 30.8 $ 27.3 $ 23.8 $ 20.3 $ 18.2 (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, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | The summary of the activity in the restructuring account for the three months ended March 31, 2018 was as follows: (in millions of dollars) Balance at December 31, 2017 Provision Cash Non-cash Balance at March 31, 2018 Employee termination costs (1) $ 12.0 $ 3.8 $ (2.6 ) $ 0.3 $ 13.5 Termination of lease agreements (2) 0.8 0.9 (0.7 ) — 1.0 Other (3) 0.5 — (0.1 ) (0.1 ) 0.3 Total restructuring liability $ 13.3 $ 4.7 $ (3.4 ) $ 0.2 $ 14.8 (1) We expect the remaining $13.5 million employee termination costs to be substantially paid in the next fifteen months. (2) We expect the remaining $1.0 million termination of lease costs to be substantially paid in the next twelve months. (3) We expect the remaining $0.3 million of other costs, principally contract exit costs, to be substantially paid in the next nine months. The summary of the activity in the restructuring account for the three months ended March 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Esselte Acquisition (4) Provision Cash Balance at March 31, 2017 Employee termination costs $ 1.4 $ 1.4 $ 1.3 $ (0.4 ) $ 3.7 Termination of lease agreements 0.1 2.0 0.2 (0.1 ) 2.2 Other — 0.1 — (0.1 ) — Total restructuring liability $ 1.5 $ 3.5 $ 1.5 $ (0.6 ) $ 5.9 (4) Restructuring liabilities assumed in the Esselte Acquisition. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes for the three months ended March 31, 2018 and 2017 , 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) 2018 2017 Income tax expense computed at U.S. statutory income tax rate (21% and 35%, respectively) $ 1.3 $ — Interest on Brazilian Tax Assessment 0.3 0.7 Partial release of reserve for the Brazilian Tax Assessment (5.6 ) — Excess tax benefit from stock-based compensation (2.5 ) (5.3 ) Net operating losses not benefited 1.0 0.4 Miscellaneous 1.2 0.7 Income tax benefit as reported $ (4.3 ) $ (3.5 ) Effective tax rate NM NM |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our calculation of diluted earnings per share of common stock assumes that any shares of common stock 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) 2018 2017 Weighted-average number of shares of common stock outstanding - basic 106.8 108.3 Stock options 1.2 1.5 Restricted stock units 2.0 2.6 Adjusted weighted-average shares and assumed conversions — diluted 110.0 112.4 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet March 31, 2018 December 31, Balance Sheet March 31, 2018 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.8 $ 0.5 Other current liabilities $ 0.7 $ 0.5 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.4 Other current liabilities 1.2 0.7 Foreign exchange contracts Other non-current assets 32.2 24.2 Other non-current liabilities 32.2 24.2 Total derivatives $ 34.4 $ 25.1 $ 34.1 $ 25.4 |
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, 2018 and 2017 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss Three Months Ended March 31, Three Months Ended March 31, (in millions of dollars) 2018 2017 2018 2017 Cash flow hedges: Foreign exchange contracts $ (0.3 ) $ (1.5 ) Cost of products sold $ 1.2 $ (1.1 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss Three Months Ended March 31, (in millions of dollars) 2018 2017 Foreign exchange contracts Other (income) expense, net $ 0.4 $ (0.8 ) |
Fair Value Of Financial Instr37
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 : (in millions of dollars) March 31, December 31, Assets: Forward currency contracts $ 34.4 $ 25.1 Liabilities: Forward currency contracts $ 34.1 $ 25.4 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 $ 0.2 $ (305.4 ) $ (155.9 ) $ (461.1 ) Other comprehensive loss before reclassifications, net of tax (0.3 ) (4.3 ) (3.8 ) (8.4 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.9 — 1.2 2.1 Balance at March 31, 2018 $ 0.8 $ (309.7 ) $ (158.5 ) $ (467.4 ) |
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, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (in millions of dollars) Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Details about Accumulated Other Comprehensive Income Components (Loss) gain on cash flow hedges: Foreign exchange contracts $ (1.2 ) $ 1.1 Cost of products sold Tax benefit (expense) 0.3 (0.4 ) Income tax benefit Net of tax $ (0.9 ) $ 0.7 Defined benefit plan items: Amortization of actuarial loss $ (1.4 ) $ (1.1 ) (1) Amortization of prior service cost (0.1 ) (0.1 ) (1) Total before tax (1.5 ) (1.2 ) Tax benefit 0.3 0.3 Income tax benefit Net of tax $ (1.2 ) $ (0.9 ) Total reclassifications for the period, net of tax $ (2.1 ) $ (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 6. Pension and Other Retiree Benefits " for additional details). |
Information On Business Segme39
Information On Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Reporting Segments | Net sales by business segment for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, (in millions of dollars) 2018 2017 ACCO Brands North America $ 165.6 $ 174.9 ACCO Brands EMEA 154.5 96.5 ACCO Brands International 85.7 88.4 Net sales $ 405.8 $ 359.8 |
Schedule of Operating Income by Reporting Segment | Operating income by business segment for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, (in millions of dollars) 2018 2017 ACCO Brands North America $ 2.9 $ 5.8 ACCO Brands EMEA 14.1 3.6 ACCO Brands International 5.8 10.1 Segment operating income 22.8 19.5 Corporate (11.1 ) (12.3 ) Operating income (1) 11.7 7.2 Interest expense 9.4 9.8 Interest income (1.0 ) (1.3 ) Non-operating pension income (2.2 ) (2.1 ) Other (income) expense, net (0.6 ) 0.7 Income before income tax $ 6.1 $ 0.1 (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. |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 3 |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating income | [1] | $ (11.7) | $ (7.2) | ||
Net sales | 405.8 | 359.8 | |||
Cost of products sold | 278.3 | 248.9 | |||
Net income | 10.4 | 3.6 | |||
Accounts receivable, net | 316.1 | $ 469.3 | |||
Inventories | 294.5 | 254.2 | |||
Other current assets | 51.5 | 29.2 | |||
Accrued customer program liabilities | 98.5 | 141.1 | |||
Other current liabilities | 112.1 | 113.8 | |||
Deferred income taxes | 174.8 | 177.1 | |||
Accumulated deficit | (733.9) | (739.2) | |||
Accounting Standards Update 2017-07 | Adjustments due to ASU 2014-09 & 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating income | $ 2.1 | 8.5 | |||
Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories | $ 250.7 | ||||
Other current assets | 36.1 | ||||
Accrued customer program liabilities | 142.2 | ||||
Other current liabilities | 113.9 | ||||
Deferred income taxes | 177.7 | ||||
Accumulated deficit | $ (737.6) | ||||
Accounting Standards Update 2014-09 | Adjustments due to ASU 2014-09 & 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative Effect on Retained Earnings, Net of Tax | 1.6 | ||||
Inventories | (3.5) | ||||
Other current assets | 6.9 | ||||
Accrued customer program liabilities | 1.1 | ||||
Other current liabilities | 0.1 | ||||
Deferred income taxes | 0.6 | ||||
Accumulated deficit | $ 1.6 | ||||
Accounting Standards Update 2014-09 | Balances without adoption of ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | 405.7 | ||||
Cost of products sold | 278.4 | ||||
Net income | 10.2 | ||||
Accounts receivable, net | 313.8 | ||||
Inventories | 297.3 | ||||
Other current assets | 44.4 | ||||
Accrued customer program liabilities | 97.9 | ||||
Other current liabilities | 108.5 | ||||
Deferred income taxes | 174.2 | ||||
Accumulated deficit | (735.7) | ||||
Accounting Standards Update 2014-09 | Effect of Change Higher/(Lower) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | 0.1 | ||||
Cost of products sold | (0.1) | ||||
Net income | 0.2 | ||||
Accounts receivable, net | (2.3) | ||||
Inventories | (2.8) | ||||
Other current assets | 7.1 | ||||
Accrued customer program liabilities | 0.6 | ||||
Other current liabilities | 3.6 | ||||
Deferred income taxes | 0.6 | ||||
Accumulated deficit | $ 1.8 | ||||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
General payment terms | 30 days | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
General payment terms | 90 days | ||||
[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 ($) | Jan. 31, 2017EUR (€) | Jan. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) |
Business Acquisition [Line Items] | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 292.6 | |||||||
Net sales | $ 405.8 | 359.8 | |||||||
Esselte Group Holdings AB | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 106.5 | ||||||||
Payments to Acquire Businesses, Gross | 326.8 | € 302.9 | |||||||
Working Capital Adjustments to Purchase Price | 0.3 | ||||||||
Cash acquired | 34.2 | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 292.3 | ||||||||
Business Acquisition, Consideration Held in Escrow | 8.7 | € 8.1 | |||||||
Net sales | $ 44.2 | ||||||||
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 | $ 5 | |||||||
Senior Secured Notes | Euro Term Loan A | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 320.8 | € 300 | |||||||
Maximum | Esselte Group Holdings AB | |||||||||
Business Acquisition [Line Items] | |||||||||
Escrow period | 2 years | 2 years | |||||||
Period of Warranty and Indemnity Policy | 7 years | 7 years |
Long-Term Debt And Short-Term43
Long-Term Debt And Short-Term Borrowings (Notes Payable and Long-term Debt) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total debt | $ 958,000,000 | $ 939,500,000 |
Current portion | 42,800,000 | 43,200,000 |
Debt issuance costs, unamortized | 6,800,000 | 7,100,000 |
Long-term debt, net | 908,400,000 | 889,200,000 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 1,200,000 | 600,000 |
Senior Secured Notes | Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at March 31, 2018 and 1.50% at December 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 350,600,000 | $ 345,000,000 |
Line of Credit Facility, Interest Rate at Period End | 1.50% | 1.50% |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.44% at March 31, 2018 and 3.29% at December 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 58,300,000 | $ 60,000,000 |
Line of Credit Facility, Interest Rate at Period End | 3.44% | 3.29% |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.57% at March 31, 2018 and 3.53% at December 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 56,500,000 | $ 48,900,000 |
Line of Credit Facility, Interest Rate at Period End | 3.57% | 3.53% |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.40% at March 31, 2018 and 3.28% at December 31, 2017) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 91,400,000 | $ 85,000,000 |
Line of Credit Facility, Interest Rate at Period End | 3.40% | 3.28% |
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 400,000,000 | $ 400,000,000 |
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 | $ 147,900,000 |
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 adjustment | $ 326.5 |
Accounts payable and accrued liabilities | 121.9 |
Deferred tax liabilities | 83.6 |
Pension obligations | 174.1 |
Other non-current liabilities | 5.8 |
Fair value of liabilities assumed | 385.4 |
Cash acquired | 34.2 |
Accounts receivable | 60 |
Inventory | 41.9 |
Property, plant and equipment | 75.6 |
Identifiable intangibles | 277 |
Deferred tax assets | 106.3 |
Other assets | 10.4 |
Fair value of assets acquired | 605.4 |
Goodwill | $ 106.5 |
Long-Term Debt And Short-Term45
Long-Term Debt And Short-Term Borrowings (Narrative) (Details) € in Millions, $ in Millions, $ in Millions | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) | Jan. 27, 2017AUD ($) |
Debt Instrument [Line Items] | |||||
Total debt | $ 958 | $ 939.5 | |||
Secured Debt | Euro Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 320.8 | € 300 | |||
Secured Debt | AUD Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 60.4 | $ 80 | |||
2017 Revolving Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 400 | ||||
Total debt | 147.9 | ||||
Amount available for borrowings under Senior Secured Revolving Credit Facilities | 239.5 | ||||
Letters of credit outstanding | $ 12.6 |
Revenue Reccognition (Service o
Revenue Reccognition (Service or Extended Maintenance Agreements) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Accumulated deficit | $ (733.9) | $ (739.2) | |
Unearned revenue associated with outstanding contracts | 5 | $ 5.2 | |
Revenue recognized | $ 3.9 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Service and maintenance agreement term | 3 months | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Service and maintenance agreement term | 60 months | ||
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Accumulated deficit | $ (737.6) | ||
Adjustments due to ASU 2014-09 | Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Accumulated deficit | $ 1.6 |
Revenue Reccognition (Unearned
Revenue Reccognition (Unearned Revenue) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 4.3 |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 0.7 |
Expected timing of satisfaction | 12 months |
Revenue Reccognition (Schedule
Revenue Reccognition (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 405.8 | $ 359.8 |
Product and Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 391.4 | |
Product and Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14.4 | |
ACCO Brands North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 165.6 | 174.9 |
ACCO Brands North America | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 144.4 | 154.7 |
ACCO Brands North America | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 21.2 | 20.2 |
ACCO Brands EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 154.5 | 96.5 |
ACCO Brands International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 85.7 | 88.4 |
ACCO Brands International | Australia/N.Z. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 39.8 | 43.2 |
ACCO Brands International | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 33.5 | 33.2 |
ACCO Brands International | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 12.4 | $ 12 |
Pension And Other Retiree Ben49
Pension And Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to defined benefit plans for 2018 | $ 20.3 | ||
Contributions by company to date | 11.3 | ||
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.4 | $ 0.3 | |
Interest cost | 1.7 | 1.8 | |
Expected return on plan assets | (2.9) | (3.1) | |
Amortization of net loss (gain) | 0.6 | 0.5 | |
Amortization of prior service cost | 0.1 | 0.1 | |
Net periodic benefit (income) expense(1) | [1] | (0.1) | (0.4) |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.3 | |
Interest cost | 3.4 | 2.9 | |
Expected return on plan assets | (5.9) | (4.9) | |
Amortization of net loss (gain) | 0.9 | 0.7 | |
Amortization of prior service cost | 0 | 0 | |
Net periodic benefit (income) expense(1) | [1] | (1.1) | (1) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
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) expense(1) | [1] | $ (0.1) | $ (0.1) |
[1] | The components, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income. |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3.2 | $ 2.4 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.5 | 0.6 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.9 | 1 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1.8 | $ 0.8 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 5 |
Weighted Average Years Expense To Be Recognized Over | 2 years 6 months 19 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 8.6 |
Weighted Average Years Expense To Be Recognized Over | 2 years 4 months 23 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 17.8 |
Weighted Average Years Expense To Be Recognized Over | 2 years 1 month 3 days |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
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 | 769,477 |
Restricted stock units | |
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 | 387,789 |
Performance stock units | |
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 | 747,996 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45.3 | $ 38.2 |
Work in process | 4.5 | 4.1 |
Finished goods | 244.7 | 211.9 |
Total inventories | $ 294.5 | $ 254.2 |
Goodwill And Identifiable Int54
Goodwill And Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at December 31, 2017 | $ 670.3 | |
Translation | (2.4) | |
Balance at March 31, 2018 | 667.9 | |
Goodwill, accumulated impairment losses | $ 215.1 | |
ACCO Brands North America | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2017 | 375.6 | |
Translation | 0 | |
Balance at March 31, 2018 | 375.6 | |
ACCO Brands EMEA | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2017 | 129.4 | |
Translation | (2.4) | |
Balance at March 31, 2018 | 127 | |
ACCO Brands International | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2017 | 165.3 | |
Translation | 0 | |
Balance at March 31, 2018 | $ 165.3 |
Goodwill And Identifiable Int55
Goodwill And Identifiable Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 9.3 | $ 8 | ||
Amortizable intangible assets, Gross Carrying Amounts | 447.9 | $ 444.1 | ||
Amortizable intangible assets, Accumulated Amortization | (168.4) | (159.2) | ||
Amortizable intangible assets, Net Book Value | 279.5 | 284.9 | ||
Total identifiable intangibles, Gross Carrying Amounts | 1,051 | 1,043.6 | ||
Total identifiable intangibles, Accumulated Amortization | (212.9) | (203.7) | ||
Total identifiable intangibles, Net Book Value | 838.1 | 839.9 | ||
Trade Names | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 196.6 | 195.3 | ||
Amortizable intangible assets, Accumulated Amortization | (62.1) | (59.4) | ||
Amortizable intangible assets, Net Book Value | 134.5 | 135.9 | ||
Customer and contractual relationships | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 245.4 | 243 | ||
Amortizable intangible assets, Accumulated Amortization | (105.7) | (99.3) | ||
Amortizable intangible assets, Net Book Value | 139.7 | 143.7 | ||
Patents | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 5.9 | 5.8 | ||
Amortizable intangible assets, Accumulated Amortization | (0.6) | (0.5) | ||
Amortizable intangible assets, Net Book Value | 5.3 | 5.3 | ||
Trade Names | ||||
Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets, gross carrying amount | 603.1 | 599.5 | ||
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 | $ 558.6 | $ 555 | ||
[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 Int56
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 9.3 | $ 8 | |
Estimated amortization expense, 2018 | [1] | 34.3 | |
Estimated amortization expense, 2019 | [1] | 30.8 | |
Estimated amortization expense, 2020 | [1] | 27.3 | |
Estimated amortization expense, 2021 | [1] | 23.8 | |
Estimated amortization expense, 2022 | [1] | 20.3 | |
Estimated amortization expense, 2023 | [1] | $ 18.2 | |
[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 Int57
Goodwill And Identifiable Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill impairment | $ 0 | |
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 | 10.50% | |
Maximum percent above carrying value | 30.00% | |
Carrying values of intangible assets | $ 113.3 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Period | $ 13.3 | $ 1.5 | ||
Provision | 4.7 | 1.5 | ||
Cash Expenditures | (3.4) | (0.6) | ||
Non-cash Items/ Currency Change | 0.2 | |||
Balance at End of Period | 14.8 | 5.9 | ||
Employee termination costs(1) | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Period | 12 | 1.4 | ||
Provision | 3.8 | 1.3 | ||
Cash Expenditures | (2.6) | (0.4) | ||
Non-cash Items/ Currency Change | 0.3 | |||
Balance at End of Period | $ 13.5 | [1] | 3.7 | |
Restructuring and Related Costs, Payment Period | 15 months | |||
Termination of lease agreements(2) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 2.4 | |||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Period | 0.8 | 0.1 | ||
Provision | 0.9 | 0.2 | ||
Cash Expenditures | (0.7) | (0.1) | ||
Non-cash Items/ Currency Change | 0 | |||
Balance at End of Period | $ 1 | [2] | 2.2 | |
Restructuring and Related Costs, Payment Period | 12 months | |||
Other3 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 0.1 | |||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Period | 0.5 | 0 | ||
Provision | 0 | 0 | ||
Cash Expenditures | (0.1) | (0.1) | ||
Non-cash Items/ Currency Change | (0.1) | |||
Balance at End of Period | $ 0.3 | [3] | 0 | |
Restructuring and Related Costs, Payment Period | 9 months | |||
Esselte Group Holdings AB | ||||
Restructuring Reserve [Roll Forward] | ||||
Acquisitions | [4] | 3.5 | ||
Esselte Group Holdings AB | Employee termination costs(1) | ||||
Restructuring Reserve [Roll Forward] | ||||
Acquisitions | 1.4 | |||
Esselte Group Holdings AB | Termination of lease agreements(2) | ||||
Restructuring Reserve [Roll Forward] | ||||
Acquisitions | 2 | |||
Esselte Group Holdings AB | Other(3) | ||||
Restructuring Reserve [Roll Forward] | ||||
Acquisitions | $ 0.1 | |||
[1] | We expect the remaining $13.5 million employee termination costs to be substantially paid in the next fifteen months. | |||
[2] | We expect the remaining $1.0 million termination of lease costs to be substantially paid in the next twelve months. | |||
[3] | We expect the remaining $0.3 million of other costs, principally contract exit costs, to be substantially paid in the next nine months. | |||
[4] | Restructuring liabilities assumed in the Esselte Acquisition. |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
Income tax expense computed at U.S. statutory income tax rate (21% and 35%, respectively) | $ 1.3 | $ 0 |
Interest on Brazilian Tax Assessment | 0.3 | 0.7 |
Partial release of reserve for the Brazilian Tax Assessment | (5.6) | 0 |
Excess tax benefit from stock-based compensation | (2.5) | (5.3) |
Net operating losses not benefited | 1 | 0.4 |
Miscellaneous | 1.2 | 0.7 |
Income tax benefit as reported | $ (4.3) | $ (3.5) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | ||||
U.S. statutory income tax rate | 21.00% | 35.00% | ||
Income tax benefit | $ (4.3) | $ (3.5) | ||
Income before income tax | 6.1 | 0.1 | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (5.6) | 0 | ||
Income Tax Reconciliation Deductions Excess Tax Benefits | $ 2.5 | 5.3 | ||
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) | ||||
Income Tax Examination [Line Items] | ||||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ (25.7) | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Toll Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense, net of foreign tax credits | 24 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 14 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit | $ 49.7 | |||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,014 | |||
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 | 2,013 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Interest Expense | $ 0.3 | $ 0.7 | ||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,012 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | ||||
Income Tax Examination [Line Items] | ||||
Unrecognized Tax Benefits | $ 24.6 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2012 | ||||
Income Tax Examination [Line Items] | ||||
Unrecognized Tax Benefits | $ 33.4 | $ 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 | 2,009 | |||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,011 | |||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,011 | |||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | ||||
Income Tax Examination [Line Items] | ||||
Open tax year | 2,016 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | ||
Common Stock, Shares, Outstanding | 107,785,559 | 109,511,073 |
Stock Repurchased and Retired During Period, Shares | 800,000 | 0 |
Treasury Stock, Shares, Acquired | 600,000 | 700,000 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted-average number of common shares outstanding - basic | 106,800,000 | 108,300,000 |
Weighted-average number of common shares outstanding - diluted | 110,000,000 | 112,400,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 2,800,000 | 2,300,000 |
Stock options | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 1,200,000 | 1,500,000 |
Restricted stock units | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 2,000,000 | 2,600,000 |
Derivative Financial Instrume62
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge | $ 96.1 | $ 95 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge | $ 119.9 | $ 93.5 |
Derivative Financial Instrume63
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 34.4 | $ 25.1 |
Derivative Liabilities | 34.1 | 25.4 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.8 | 0.5 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.7 | 0.5 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.4 | 0.4 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.2 | 0.7 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 32.2 | 24.2 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 32.2 | $ 24.2 |
Derivative Financial Instrume64
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivatives not designated as hedging instruments | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | $ 0.4 | $ (0.8) |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (0.3) | (1.5) |
Cash Flow Hedging | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Reclassified from AOCI to Income (Effective Portion) | $ 1.2 | $ (1.1) |
Fair Value Of Financial Instr65
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, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | $ 960 | $ 951.5 |
Foreign currency contracts, assets | 34.4 | 25.1 |
Foreign currency contracts, liabilities | $ 34.1 | $ 25.4 |
Fair Value Of Financial Instr66
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Total debt | $ 958 | $ 939.5 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Rollforward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2017 | $ (461.1) |
Other comprehensive loss before reclassifications, net of tax | (8.4) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2.1 |
Balance at March 31, 2018 | (467.4) |
Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2017 | 0.2 |
Other comprehensive loss before reclassifications, net of tax | (0.3) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0.9 |
Balance at March 31, 2018 | 0.8 |
Foreign Currency Adjustments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2017 | (305.4) |
Other comprehensive loss before reclassifications, net of tax | (4.3) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 |
Balance at March 31, 2018 | (309.7) |
Unrecognized Pension and Other Post-retirement Benefit Costs | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2017 | (155.9) |
Other comprehensive loss before reclassifications, net of tax | (3.8) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1.2 |
Balance at March 31, 2018 | $ (158.5) |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of products sold | $ (278.3) | $ (248.9) | |
Income tax (expense) benefit | 4.3 | 3.5 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | (2.1) | (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] | (1.4) | (1.1) |
Amortization of prior service cost | [1] | (0.1) | (0.1) |
Total before tax | (1.5) | (1.2) | |
Income tax (expense) benefit | 0.3 | 0.3 | |
Net of tax | (1.2) | (0.9) | |
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 | (1.2) | 1.1 | |
Income tax (expense) benefit | 0.3 | (0.4) | |
Net of tax | $ (0.9) | $ 0.7 | |
[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 6. Pension and Other Retiree Benefits" for additional details). |
Information On Business Segme69
Information On Business Segments (Net Sales by Segment) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business segments | segment | 3 | |
Net sales | $ 405.8 | $ 359.8 |
ACCO Brands North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 165.6 | 174.9 |
ACCO Brands EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 154.5 | 96.5 |
ACCO Brands International | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 85.7 | $ 88.4 |
Information On Business Segme70
Information On Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | $ 11.7 | $ 7.2 |
Interest expense | 9.4 | 9.8 | |
Interest income | (1) | (1.3) | |
Non-operating pension income | (2.2) | (2.1) | |
Other (income) expense, net | (0.6) | 0.7 | |
Income before income tax | 6.1 | 0.1 | |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | 22.8 | 19.5 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | (11.1) | (12.3) |
ACCO Brands North America | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | 2.9 | 5.8 |
ACCO Brands EMEA | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | 14.1 | 3.6 |
ACCO Brands International | Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | [1] | $ 5.8 | $ 10.1 |
[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. |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - Common Stock | May 01, 2018$ / shares |
Subsequent Event [Line Items] | |
Dividends Payable, Amount Per Share | $ 0.06 |
Dividends Payable, Date to be Paid | Jun. 20, 2018 |
Dividends Payable, Date of Record | Jun. 1, 2018 |