Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 22, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-08454 | |
Entity Registrant Name | ACCO Brands Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2704017 | |
Entity Address, Address Line One | Four Corporate Drive | |
Entity Address, City or Town | Lake Zurich | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60047 | |
City Area Code | 847 | |
Local Phone Number | 541-9500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ACCO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 96,986,635 | |
Entity Central Index Key | 0000712034 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 37.7 | $ 67 |
Accounts receivable, net | 377.4 | 428.4 |
Inventories | 312.5 | 340.6 |
Other current assets | 45.3 | 44.2 |
Total current assets | 772.9 | 880.2 |
Total property, plant and equipment | 631.4 | 618.7 |
Less: accumulated depreciation | (372) | (355) |
Property, plant and equipment, net | 259.4 | 263.7 |
Right of use asset, leases | 95.8 | 0 |
Deferred income taxes | 105 | 115.1 |
Goodwill | 709.7 | 708.9 |
Identifiable intangibles, net | 756.8 | 787 |
Other non-current assets | 22.5 | 31.5 |
Total assets | 2,722.1 | 2,786.4 |
Current liabilities: | ||
Notes payable | 3.6 | 0 |
Current portion of long-term debt | 31.6 | 39.5 |
Accounts payable | 175.7 | 274.6 |
Accrued compensation | 46.1 | 41.6 |
Accrued customer program liabilities | 89.2 | 114.5 |
Lease liabilities | 20.6 | 0 |
Other current liabilities | 110.8 | 129 |
Total current liabilities | 477.6 | 599.2 |
Long-term debt, net | 882.5 | 843 |
Long-term lease liabilities | 84.6 | 11 |
Deferred income taxes | 183 | 176.2 |
Pension and post-retirement benefit obligations | 226.8 | 257.2 |
Other non-current liabilities | 100.7 | 110.1 |
Total liabilities | 1,955.2 | 1,996.7 |
Stockholders' equity: | ||
Common stock | 1 | 1.1 |
Treasury stock | (38.2) | (33.9) |
Paid-in capital | 1,893.8 | 1,941 |
Accumulated other comprehensive loss | (478.4) | (461.7) |
Accumulated deficit | (611.3) | (656.8) |
Total stockholders' equity | 766.9 | 789.7 |
Total liabilities and stockholders' equity | $ 2,722.1 | $ 2,786.4 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | $ 505.7 | $ 507.3 | $ 1,418.3 | $ 1,411.9 | |
Cost of products sold | 349.8 | 346.5 | 970.8 | 961.2 | |
Gross profit | 155.9 | 160.8 | 447.5 | 450.7 | |
Operating costs and expenses: | |||||
Selling, general and administrative expenses | 96.4 | 92.8 | 287.8 | 294.6 | |
Amortization of intangibles | 8.6 | 9.4 | 26.8 | 27.2 | |
Restructuring charges | 2.1 | 1.1 | 4.8 | 7.9 | |
Total operating costs and expenses | 107.1 | 103.3 | 319.4 | 329.7 | |
Operating income | [1] | 48.8 | 57.5 | 128.1 | 121 |
Non-operating expense (income): | |||||
Interest expense | 11.5 | 11.6 | 33.6 | 30.9 | |
Interest income | (0.7) | (1.1) | (2.9) | (3.5) | |
Non-operating pension income | (1.3) | (2.6) | (4.1) | (7.1) | |
Other (income) expense, net | (0.9) | 0.6 | 0.1 | 1.6 | |
Income before income tax | 40.2 | 49 | 101.4 | 99.1 | |
Income tax expense | 12.2 | 13.4 | 38.1 | 27.4 | |
Net income | $ 28 | $ 35.6 | $ 63.3 | $ 71.7 | |
Basic income per share: | |||||
Basic income per share | $ 0.29 | $ 0.34 | $ 0.63 | $ 0.68 | |
Diluted income per share: | |||||
Diluted income per share | $ 0.28 | $ 0.34 | $ 0.62 | $ 0.66 | |
Weighted average number of shares outstanding: | |||||
Basic | 97.6 | 103.8 | 100.4 | 105.6 | |
Diluted | 98.9 | 105.9 | 101.9 | 107.9 | |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28 | $ 35.6 | $ 63.3 | $ 71.7 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized income (loss) on derivative instruments, net of tax (expense) benefit of $(0.6) and $0.3 and $0.4 and $(1.1), respectively | 1.4 | (0.7) | (0.9) | 2.8 |
Foreign currency translation adjustments, net of tax benefit (expense) of $0.9 and $1.2 and $0.5 and $(1.6), respectively | (25.1) | (4.5) | (22.4) | (18.6) |
Recognition of deferred pension and other post-retirement items, net of tax (expense) of $(1.2) and $(0.4) and $(1.9) and $(1.9), respectively | 4.2 | 1.1 | 6.6 | 6.2 |
Other comprehensive loss, net of tax | (19.5) | (4.1) | (16.7) | (9.6) |
Comprehensive income | $ 8.5 | $ 31.5 | $ 46.6 | $ 62.1 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized income (loss) on derivative instruments, net of tax (expense) benefit of $(0.6) and $0.3 and $0.4 and $(1.1), respectively | $ (0.6) | $ 0.3 | $ 0.4 | $ (1.1) |
Foreign currency translation adjustments, net of tax benefit (expense) of $0.9 and $1.2 and $0.5 and $(1.6), respectively | 0.9 | 1.2 | 0.5 | (1.6) |
Recognition of deferred pension and other post-retirement items, net of tax (expense) of $(1.2) and $(0.4) and $(1.9) and $(1.9), respectively | $ (1.2) | $ (0.4) | $ (1.9) | $ (1.9) |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 63.3 | $ 71.7 |
Amortization of inventory step-up | 0.2 | 0 |
Loss on disposal of assets | 0 | 0.1 |
Depreciation | 26.3 | 25.5 |
Other non-cash items | (0.2) | 0 |
Amortization of debt issuance costs | 1.7 | 1.5 |
Amortization of intangibles | 26.8 | 27.2 |
Stock-based compensation | 6.3 | 6 |
Loss on debt extinguishment | 0.3 | 0.3 |
Changes in balance sheet items: | ||
Accounts receivable | 54 | 46.2 |
Inventories | 34.8 | (81.2) |
Other assets | (2.6) | (0.6) |
Accounts payable | (102.1) | 39.1 |
Accrued expenses and other liabilities | (40.8) | (58.1) |
Accrued income taxes | 6.7 | 7 |
Net cash provided by operating activities | 75.1 | 84.7 |
Investing activities | ||
Additions to property, plant and equipment | (21.9) | (26.3) |
Proceeds from the disposition of assets | 0.1 | 0.2 |
Cost of acquisitions, net of cash acquired | 42.1 | 37.3 |
Other assets acquired | (5.2) | 0 |
Net cash used by investing activities | (69.1) | (63.4) |
Financing activities | ||
Proceeds from long-term borrowings | 325.9 | 217.4 |
Repayments of long-term debt | (272) | (118.3) |
(Repayments) borrowings of notes payable, net | (8.6) | 0 |
Payments for debt issuance costs | (3.3) | (0.6) |
Dividends paid | (18.1) | (18.9) |
Repurchases of common stock | (56.8) | (75) |
Payments related to tax withholding for stock-based compensation | (4.3) | (7.5) |
Proceeds from the exercise of stock options | 3.1 | 6.8 |
Net cash (used) provided by financing activities | (34.1) | 3.9 |
Effect of foreign exchange rate changes on cash and cash equivalents | (1.2) | (7.1) |
Net (decrease) increase in cash and cash equivalents | (29.3) | 18.1 |
Cash and cash equivalents | ||
Beginning of the period | 67 | 76.9 |
End of the period | 37.7 | 95 |
Cash paid during the year for: | ||
Interest | 27.6 | 22.8 |
Income taxes | $ 38.6 | $ 24.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Accumulated Deficit |
Balance at start of period at Dec. 31, 2017 | $ 774.1 | $ 1.1 | $ 1,999.7 | $ (461.1) | $ (26.4) | $ (739.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10.4 | 10.4 | ||||
Gain (Loss) on derivative financial instruments, net of tax | 0.6 | 0.6 | ||||
Translation impact | (4.3) | (4.3) | ||||
Pension and post-retirement adjustment, net of tax | (2.6) | (2.6) | ||||
Common stock repurchases | (9.3) | (9.3) | ||||
Stock-based compensation | 3.2 | 3.5 | (0.3) | |||
Common stock issued, net of shares withheld for employee taxes | (2.3) | 5.2 | (7.5) | |||
Dividends declared, $.06 per share | (6.3) | (6.3) | ||||
Balance at end of period at Mar. 31, 2018 | $ 765 | $ 1.1 | 1,999.1 | (467.4) | $ (33.9) | (733.9) |
Balance at start of period (in shares) at Dec. 31, 2017 | 106,684,084 | 109,597,197 | 2,913,113 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 1,861,948 | 2,442,703 | 580,755 | |||
Common stock repurchases | (760,473) | (760,473) | ||||
Balance at end of period (in shares) at Mar. 31, 2018 | 107,785,559 | 111,279,427 | 3,493,868 | |||
Balance at start of period at Dec. 31, 2017 | $ 774.1 | $ 1.1 | 1,999.7 | (461.1) | $ (26.4) | (739.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 71.7 | |||||
Gain (Loss) on derivative financial instruments, net of tax | 2.8 | |||||
Pension and post-retirement adjustment, net of tax | 6.2 | |||||
Balance at end of period at Sep. 30, 2018 | $ 749.1 | $ 1.1 | 1,938.2 | (470.7) | $ (33.9) | (685.6) |
Balance at start of period (in shares) at Dec. 31, 2017 | 106,684,084 | 109,597,197 | 2,913,113 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock repurchases | (6,000,000) | |||||
Balance at end of period (in shares) at Sep. 30, 2018 | 102,739,645 | 106,236,732 | 3,497,087 | |||
Balance at start of period at Mar. 31, 2018 | $ 765 | $ 1.1 | 1,999.1 | (467.4) | $ (33.9) | (733.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 25.7 | 25.7 | ||||
Gain (Loss) on derivative financial instruments, net of tax | 2.9 | 2.9 | ||||
Translation impact | (9.8) | (9.8) | ||||
Pension and post-retirement adjustment, net of tax | 7.7 | 7.7 | ||||
Common stock repurchases | (41.7) | (41.7) | ||||
Stock-based compensation | 3.9 | 4.1 | (0.2) | |||
Common stock issued, net of shares withheld for employee taxes | 1 | 1 | ||||
Dividends declared, $.06 per share | (6.4) | (6.4) | ||||
Balance at end of period at Jun. 30, 2018 | $ 748.3 | $ 1.1 | 1,962.5 | (466.6) | $ (33.9) | (714.8) |
Balance at start of period (in shares) at Mar. 31, 2018 | 107,785,559 | 111,279,427 | 3,493,868 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 113,687 | 115,620 | 1,933 | |||
Common stock repurchases | (3,272,480) | (3,272,480) | ||||
Balance at end of period (in shares) at Jun. 30, 2018 | 104,626,766 | 108,122,567 | 3,495,801 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 35.6 | 35.6 | ||||
Gain (Loss) on derivative financial instruments, net of tax | (0.7) | (0.7) | ||||
Translation impact | (4.5) | (4.5) | ||||
Pension and post-retirement adjustment, net of tax | 1.1 | 1.1 | ||||
Common stock repurchases | (24) | (24) | ||||
Stock-based compensation | (1.1) | (0.9) | (0.2) | |||
Common stock issued, net of shares withheld for employee taxes | 0.5 | 0.5 | ||||
Dividends declared, $.06 per share | (6.2) | (6.2) | ||||
Other | 0.1 | 0.1 | ||||
Balance at end of period at Sep. 30, 2018 | $ 749.1 | $ 1.1 | 1,938.2 | (470.7) | $ (33.9) | (685.6) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 73,885 | 75,171 | 1,286 | |||
Common stock repurchases | (1,961,006) | (1,961,006) | ||||
Balance at end of period (in shares) at Sep. 30, 2018 | 102,739,645 | 106,236,732 | 3,497,087 | |||
Balance at start of period at Dec. 31, 2018 | $ 789.7 | $ 1.1 | 1,941 | (461.7) | $ (33.9) | (656.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (0.6) | (0.6) | ||||
Gain (Loss) on derivative financial instruments, net of tax | (1.1) | (1.1) | ||||
Translation impact | (3.1) | (3.1) | ||||
Pension and post-retirement adjustment, net of tax | (1.1) | (1.1) | ||||
Common stock repurchases | (11) | (11) | ||||
Stock-based compensation | 2 | 2 | ||||
Common stock issued, net of shares withheld for employee taxes | (4.3) | (4.3) | ||||
Dividends declared, $.06 per share | (6.2) | (6.2) | ||||
Other | 0 | (0.1) | 0.1 | |||
Balance at end of period at Mar. 31, 2019 | $ 764.8 | $ 1.1 | 1,931.9 | (467) | $ (38.2) | (663) |
Balance at start of period (in shares) at Dec. 31, 2018 | 102,748,700 | 106,249,322 | 3,500,622 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 978,034 | 1,437,021 | 458,987 | |||
Common stock repurchases | (1,260,163) | (1,260,163) | ||||
Balance at end of period (in shares) at Mar. 31, 2019 | 102,466,571 | 106,426,180 | 3,959,609 | |||
Balance at start of period at Dec. 31, 2018 | $ 789.7 | $ 1.1 | 1,941 | (461.7) | $ (33.9) | (656.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 63.3 | |||||
Gain (Loss) on derivative financial instruments, net of tax | (0.9) | |||||
Pension and post-retirement adjustment, net of tax | 6.6 | |||||
Balance at end of period at Sep. 30, 2019 | $ 766.9 | $ 1 | 1,893.8 | (478.4) | $ (38.2) | (611.3) |
Balance at start of period (in shares) at Dec. 31, 2018 | 102,748,700 | 106,249,322 | 3,500,622 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock repurchases | (7,000,000) | |||||
Balance at end of period (in shares) at Sep. 30, 2019 | 97,187,147 | 101,154,592 | 3,967,445 | |||
Balance at start of period at Mar. 31, 2019 | $ 764.8 | $ 1.1 | 1,931.9 | (467) | $ (38.2) | (663) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35.9 | 35.9 | ||||
Gain (Loss) on derivative financial instruments, net of tax | (1.2) | (1.2) | ||||
Translation impact | 5.8 | 5.8 | ||||
Pension and post-retirement adjustment, net of tax | 3.5 | 3.5 | ||||
Common stock repurchases | (28.3) | (28.3) | ||||
Stock-based compensation | 3.4 | 3.6 | (0.2) | |||
Common stock issued, net of shares withheld for employee taxes | 0.2 | 0.2 | ||||
Dividends declared, $.06 per share | (6) | (6) | ||||
Other | (0.1) | (0.1) | 0.1 | (0.1) | ||
Balance at end of period at Jun. 30, 2019 | $ 778 | $ 1 | 1,907.5 | (458.9) | $ (38.2) | (633.4) |
Balance at start of period (in shares) at Mar. 31, 2019 | 102,466,571 | 106,426,180 | 3,959,609 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 36,344 | 44,180 | 7,836 | |||
Common stock repurchases | (3,443,904) | (3,443,904) | ||||
Balance at end of period (in shares) at Jun. 30, 2019 | 99,059,011 | 103,026,456 | 3,967,445 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 28 | 28 | ||||
Gain (Loss) on derivative financial instruments, net of tax | 1.4 | 1.4 | ||||
Translation impact | (25.1) | (25.1) | ||||
Pension and post-retirement adjustment, net of tax | 4.2 | 4.2 | ||||
Common stock repurchases | (17.7) | $ (0.1) | (17.6) | |||
Stock-based compensation | 0.9 | 1 | (0.1) | |||
Common stock issued, net of shares withheld for employee taxes | 2.9 | 2.9 | ||||
Dividends declared, $.06 per share | (5.9) | (5.9) | ||||
Other | 0.2 | 0.1 | 0.1 | |||
Balance at end of period at Sep. 30, 2019 | $ 766.9 | $ 1 | $ 1,893.8 | $ (478.4) | $ (38.2) | $ (611.3) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 386,781 | 386,781 | 0 | |||
Common stock repurchases | (2,258,645) | (2,258,645) | ||||
Balance at end of period (in shares) at Sep. 30, 2019 | 97,187,147 | 101,154,592 | 3,967,445 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock, dividends per share, declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 , 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, 2018 . The Condensed Consolidated Balance Sheet as of September 30, 2019 , the related Consolidated Statements of Income , the Consolidated Statements of Comprehensive Income , and the Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2019 and 2018 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 are unaudited. The December 31, 2018 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 September 30, 2019 and 2018 , and the financial position of the Company as of September 30, 2019 . Interim results may not be indicative of results for a full year. Effective August 1, 2019, we completed the acquisition (the "Foroni Acquisition") of Indústria Gráfica Foroni Ltda. ("Foroni"), a leading provider of Foroni ® branded notebooks and paper-based school and office products in Brazil, for a preliminary purchase price of $42.1 million , subject to working capital and other adjustments. The Foroni Acquisition advances our strategy to expand in faster growing geographies and product categories, add consumer-centric brands and diversify our customer base. The results of Foroni are included in the ACCO Brands International segment from August 1, 2019. On July 2, 2018, we completed the acquisition (the "GOBA Acquisition") of GOBA Internacional, S.A. de C.V. ("GOBA"), a leading provider of Barrilito ® branded school and craft products in Mexico. The purchase price was $37.2 million , net of cash acquired, and working capital and other adjustments. The GOBA Acquisition has increased the breadth and depth of our distribution throughout Mexico, especially with wholesalers and retailers and added a strong offering of school and craft products to our product portfolio in Mexico. The results of GOBA are included in the ACCO Brands International segment from July 2, 2018. See " Note 3. Acquisitions " for details on the Foroni and GOBA acquisitions. On January 1, 2019, the Company adopted accounting standard ASU No. 2016-02, Leases (Topic 842), applying the transition method in accounting standard ASU 2018-11 Leases (Topic 842), Targeted Improvements. ASU 2018-11 allows an entity to initially apply ASU 2016-02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. For more information, see " Note 2. Recent Accounting Pronouncements and Adopted Accounting Standards " and " Note 5. Leases ." Certain prior year amounts have been reclassified for consistency with the current year presentation in our Condensed Consolidated Balance Sheet, primarily due to the Company's adoption of ASU No. 2016-02, Leases (Topic 842) at the beginning of 2019. 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 | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements and Adopted Accounting Standards Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). While the Company does not expect a material impact to its consolidated financial statements, we are currently in the process of evaluating the adoption of ASU 2018-15. ASU 2018-015 is effective for fiscal years ending after December 15, 2019. Early adoption of the standard is permitted, including adoption in any interim period for which financial statements have not been issued. The Company will adopt ASU No. 2018-15 beginning January 1, 2020. There are no other recently issued accounting standards that are expected to have an impact on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards On January 1, 2019, the Company adopted accounting standard ASU No. 2016-02, Leases (Topic 842), applying the transition method in accounting standard ASU 2018-11 Leases (Topic 842), Targeted Improvements. ASU 2018-11 allows an entity to initially apply ASU 2016-02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes on our January 1, 2019, opening Condensed Consolidated Balance Sheet due to the adoption of ASU 2016-02 was as follows: (in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets: Property, plant and equipment, net $ 263.7 $ (0.9 ) $ 262.8 Right of use asset, leases — 90.9 90.9 Liabilities and stockholders' equity: Current portion of long-term debt 39.5 (0.1 ) 39.4 Lease liabilities — 24.1 24.1 Long-term debt, net 843.0 (0.1 ) 842.9 Long-term lease liabilities 11.0 65.6 76.6 Accumulated deficit (656.8 ) 0.5 (656.3 ) The impact of the adoption of ASU 2016-02 on our Condensed Consolidated Balance Sheet for the period ended September 30, 2019 was as follows: Balance at September 30, 2019 (in millions) As Reported Balances without adoption of ASU 2016-02 Effect of Change Higher/(Lower) Condensed Consolidated Balance Sheet: Assets: Property, plant and equipment, net $ 259.4 $ 260.2 $ (0.8 ) Right of use asset, leases 95.8 — 95.8 Liabilities and stockholders' equity: Current portion of long-term debt 31.6 31.7 (0.1 ) Lease liabilities 20.6 0.3 20.3 Long-term debt, net 882.5 882.6 (0.1 ) Long-term lease liabilities 84.6 10.2 74.4 Accumulated deficit (611.3 ) (611.8 ) 0.5 See " Note 5. Leases " for further details and the required disclosures related to ASU 2016-02. The adoption of ASU 2016-02 did not materially affect our Consolidated Statements of Income , Condensed Consolidated Statements of Cash Flows or Consolidated Statement of Stockholders' Equity. There were no other accounting standards that were adopted in the first nine months of 2019 that had a material effect on the Company’s financial condition, results of operations or cash flow. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Foroni Effective August 1, 2019, we completed the acquisition of Foroni, a leading provider of Foroni ® branded notebooks and paper-based school and office products in Brazil. The Foroni Acquisition advances our strategy to expand in faster growing geographies and product categories, add consumer-centric brands and diversify our customer base. The results of Foroni are included in the ACCO Brands International segment from August 1, 2019. The preliminary purchase price was R$159.5 million ( US$42.1 million based on July 31, 2019, exchange rates) subject to working capital and other adjustments and includes the assumption of $7.6 million in debt. A portion of the purchase price ( R$25.0 million or US$6.6 million based on July 31, 2019 exchange rates) is being held in an escrow account for a period of up to 6 years after closing in the event of any claims against the sellers under the quota purchase agreement. The Company may also make claims against the sellers directly, subject to limitations in the quota purchase agreement, if the escrow is depleted. The Foroni Acquisition and related expenses were funded by cash on hand. For accounting purposes, the Company was the acquiring enterprise. The Foroni Acquisition is being accounted for as a purchase business combination and Foroni's results are included in the Company’s condensed consolidated financial statements as of August 1, 2019. The net sales for Foroni for each of the three and nine months ended September 30, 2019 were $5.7 million for the two months owned. The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of acquisition: (in millions) At August 2, 2019 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 42.1 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 12.1 Deferred tax liabilities 5.2 Debt 7.6 Lease liabilities 4.8 Fair value of liabilities assumed $ 29.7 Less fair value of assets acquired: Cash acquired — Accounts receivable 17.5 Inventory 12.6 Property and equipment 8.9 Identifiable intangibles 10.2 Deferred tax assets 2.2 Right of use asset, leases 4.8 Other assets 3.7 Fair value of assets acquired $ 59.9 Goodwill $ 11.9 We are continuing our review of our fair value estimate of assets acquired and liabilities assumed during the measurement period, which will conclude as soon as we receive the information we are seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not available. This measurement period will not exceed one year from the acquisition date. The excess of the purchase price over the fair value of net assets acquired is allocated to goodwill. The preliminary goodwill of $11.9 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. Our fair value estimate of assets acquired and liabilities assumed is pending the completion of several elements, including the final determination of the purchase price, pending calculations of working capital and other adjustments, of the fair value of the assets acquired and liabilities assumed and the final review by our management. The primary areas that are not yet finalized relate to inventory, intangible assets, property and equipment, reserves and liabilities, and income and other taxes. Accordingly, there could be material adjustments to our condensed consolidated financial statements, including changes in our amortization and depreciation expense related to the valuation of intangible assets and property and equipment acquired and their respective useful lives, among other adjustments. The final determination of the purchase price, fair values and resulting goodwill may differ significantly from what is reflected in these condensed consolidated financial statements. During the nine months ended September 30, 2019 , transaction costs related to the Foroni Acquisition were $1.3 million . These costs were reported as selling, general and administrative ("SG&A") expenses in the Company's Consolidated Statements of Income . Pro forma financial information is not presented due to immateriality. Cumberland Asset Acquisition On January 31, 2019, the Company completed the purchase of certain assets, including inventory and certain identifiable intangibles, for the Cumberland brand (the "Cumberland Asset Acquisition") in Australia for a purchase price of A $8.2 million (US $6.0 million based on January 31, 2019 exchange rates). The Cumberland Asset Acquisition extends our presence in Australia into new product categories. The Company accounted for the transaction as an asset acquisition, as the set of assets acquired does not meet the criteria to be classified as a business under GAAP. During the nine months ended September 30, 2019 , transaction costs related to the Cumberland Asset Acquisition were $0.1 million . These costs were reported as SG&A expenses in the Company's Consolidated Statements of Income . The following table summarizes the fair value of assets acquired: (in millions) At January 31, 2019 Inventory $ 2.8 Identifiable intangibles 3.2 Fair value of assets acquired $ 6.0 Acquisition of GOBA On July 2, 2018, the Company completed the GOBA Acquisition. GOBA is a leading provider of Barrilito ® branded school and craft products in Mexico. The GOBA Acquisition increased the breadth and depth of our distribution throughout Mexico, especially with wholesalers and retailers and added a strong offering of school and craft products to our product portfolio in Mexico. The purchase price paid at closing was Mex $796.8 million (US $39.9 million based on July 2, 2018 exchange rates), and was later reduced by $0.8 million of working capital adjustments. The purchase price, net of cash acquired of $1.9 million , was $37.2 million . A portion of the purchase price (Mex $115.0 million (US $5.8 million based on July 2, 2018 exchange rates)) is being held in an escrow account for a period of up to 5 years after closing in the event of any claims against the sellers under the stock purchase agreement. The Company may also make claims against the sellers directly, subject to limitations in the stock purchase agreement, if the escrow is depleted. The GOBA Acquisition and related expenses were funded by increased borrowing under our revolving facility. For accounting purposes, the Company was the acquiring enterprise. The GOBA Acquisition was accounted for as a purchase business combination. The results of GOBA are included in the ACCO Brands International segment as of July 2, 2018. The net sales for the six month period ended June 30, 2019 for GOBA were $23.7 million . 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) At July 2, 2018 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 39.1 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 10.1 Deferred tax liabilities 3.1 Other non-current liabilities 6.5 Fair value of liabilities assumed $ 19.7 Less fair value of assets acquired: Cash acquired 1.9 Accounts receivable 30.0 Inventory 7.1 Property, plant and equipment 0.6 Identifiable intangibles 10.3 Deferred tax assets 2.0 Other assets 4.2 Fair value of assets acquired $ 56.1 Goodwill $ 2.7 In the second quarter of 2019, we finalized our fair value estimate of assets acquired and liabilities assumed as of the acquisition date. During the year ended December 31, 2018 , transaction costs related to the GOBA Acquisition were $1.1 million . These costs were reported as interest and SG&A expenses in the Company's Consolidated Statements of Income . |
Long-Term Debt And Short-Term B
Long-Term Debt And Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : (in millions) September 30, December 31, Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 1.75% at September 30, 2019) $ 273.0 $ — Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2018) — 289.0 USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.94% at September 30, 2019) 98.7 — Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.76% at September 30, 2019) 40.8 — Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.56% at December 31, 2018) — 43.0 U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.94% at September 30, 2019) 64.7 — U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 4.36% at December 31, 2018) — 106.8 Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.78% at September 30, 2019) 67.7 — Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.54% at December 31, 2018) — 73.9 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 375.0 375.0 Other borrowings 3.6 0.3 Total debt 923.5 888.0 Less: Current portion 35.2 39.5 Debt issuance costs, unamortized 5.8 5.5 Long-term debt, net $ 882.5 $ 843.0 The Company entered into a Credit Agreement (the "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 Credit Agreement provided for a five-year senior secured credit facility, which consisted of a €300.0 million ( US$320.8 million based on January 27, 2017, exchange rates) term loan facility, an 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 "Revolving Facility"). Effective July 26, 2018, the Company entered into the First Amendment (the "First Amendment") to the Credit Agreement among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto. The First Amendment increased the aggregate revolving credit commitments under the Revolving Facility by $100.0 million such that, after giving effect to such increase, the aggregate amount of revolving credit available under the Revolving Facility was $500.0 million . In addition, the First Amendment also affected certain technical amendments to the Credit Agreement, including the addition of provisions relating to LIBOR successor rate procedures if LIBOR becomes unascertainable or is discontinued in the future and to expressly permit certain intercompany asset transfers. The changes related to LIBOR successor rate procedures are not expected to have a material effect on the Company. Effective May 23, 2019, the Company entered into a Second Amendment (the "Second Amendment") to the Credit Agreement. Pursuant to the Second Amendment, the Credit Agreement was amended to, among other things: • extend the maturity date to May 23, 2024; • increase the aggregate revolving credit commitments under the Revolving Facility from $500.0 million to $600.0 million ; • establish a new term loan facility denominated in U.S. Dollars in an aggregate principal amount of $100.0 million (the "USD Term Loan"); • replace the minimum fixed coverage ratio of 1.25 :1.00 with a minimum interest coverage ratio, as calculated under the Credit Agreement, of 3.00 :1.00; • reflect a more favorable restricted payment covenant, with the consolidated leverage ratio hurdle for unlimited restricted payments (including share repurchases and dividends) as calculated under the Credit Agreement increasing from 2.50 x to 3.25 x; • reflect, in certain cases, more favorable pricing with a 25 basis point reduction in the applicable rate on outstanding loans than was in effect prior to the Second Amendment based on the Company's current consolidated leverage ratio, along with lower fees on undrawn amounts; • eliminate the requirement to make annual principal prepayments of excess cash flow; • reduce amortization payments for the term loans; and • increase the qualified receivables transaction basket with respect to sales or financings of certain receivables. Effective upon the closing of the Second Amendment, the Company borrowed the entire principal amount committed under the USD Term Loan, which was used to repay revolver borrowings and, in combination with the increase in the Revolving Facility, resulted in $200.0 million of additional liquidity becoming available under the Revolving Facility. We incurred and capitalized approximately $3.3 million in bank, legal and other fees associated with the Second Amendment. As of September 30, 2019 , there were $132.4 million in borrowings outstanding under the Revolving Facility. The remaining amount available for borrowings as of September 30, 2019 , was $454.8 million (allowing for $12.8 million of letters of credit outstanding on that date). As of and for the periods ended September 30, 2019 and December 31, 2018 , the Company was in compliance with all applicable loan covenants. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases On January 1, 2019, the Company adopted accounting standard ASU No. 2016-02, Leases (Topic 842), applying the transition method in accounting standard ASU 2018-11 Leases (Topic 842), Targeted Improvements. ASU 2018-11 allows an entity to initially apply ASU 2016-02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recorded a net increase to beginning retained earnings of $0.5 million as of January 1, 2019 due to the cumulative impact of adopting ASU 2016-02. The impact of adopting ASU 2016-02 on our Condensed Consolidated Balance Sheet was material, but the impact was immaterial for our Consolidated Statements of Income , Condensed Consolidated Statements of Cash Flows and Consolidated Statement of Stockholders' Equity. The Company leases its corporate headquarters, various other facilities for distribution, manufacturing, and offices, as well as vehicles, forklifts and other equipment. The Company determines if an arrangement is a lease at inception. Leases are included in " Right of use asset, leases " ("ROU Assets"), and the current portion of the lease liability is included in " Lease liabilities " and the non-current portion is included in " Long-term lease liabilities " in the Condensed Consolidated Balance Sheet. The Company currently has an immaterial amount of financing leases and leases with a term of less than 12 months. ROU Assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Because most of the Company’s leases do not provide an implicit rate of return, the Company uses its incremental collateralized borrowing rate, on a regional basis, in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are combined for accounting purposes. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2019 Operating lease cost $ 7.3 $ 21.7 Sublease income (0.5 ) (1.3 ) Total lease cost $ 6.8 $ 20.4 Other information related to leases was as follows: Nine Months Ended September 30, (in millions, except lease term and discount rate) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 25.6 Weighted average remaining lease term: Operating leases 7.2 years Weighted average discount rate: Operating leases 5.3 % Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of September 30, 2019 were as follows: (in millions) 2019 $ 6.8 2020 24.7 2021 20.8 2022 17.0 2023 12.9 2024 11.4 Thereafter 40.3 Total minimum lease payments 133.9 Less imputed interest 28.2 Future minimum payments for leases, net of sublease rental income and imputed interest $ 105.7 |
Pension And Other Retiree Benef
Pension And Other Retiree Benefits | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Pension Post-retirement U.S. International (in millions) 2019 2018 2019 2018 2019 2018 Service cost $ 0.3 $ 0.4 $ 0.3 $ 0.6 $ — $ — Interest cost 1.8 1.6 3.3 3.1 0.1 0.1 Expected return on plan assets (2.9 ) (2.9 ) (5.1 ) (5.6 ) — — Amortization of net loss (gain) 0.6 0.7 0.9 0.8 (0.1 ) (0.1 ) Amortization of prior service cost 0.1 0.1 0.1 — — — Curtailment gain — — — (0.6 ) — — Net periodic benefit income (1) $ (0.1 ) $ (0.1 ) $ (0.5 ) $ (1.7 ) $ — $ — Nine Months Ended September 30, Pension Post-retirement U.S. International (in millions) 2019 2018 2019 2018 2019 2018 Service cost $ 1.0 $ 1.2 $ 0.9 $ 1.6 $ — $ — Interest cost 5.5 5.0 10.1 9.8 0.2 0.1 Expected return on plan assets (8.7 ) (8.8 ) (15.4 ) (17.3 ) — — Amortization of net loss (gain) 1.6 2.0 2.6 2.6 (0.3 ) (0.3 ) Amortization of prior service cost 0.3 0.3 0.1 — — — Curtailment gain — — — (0.6 ) — — Net periodic benefit income (1) $ (0.3 ) $ (0.3 ) $ (1.7 ) $ (3.9 ) $ (0.1 ) $ (0.2 ) (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 $20.4 million to our defined benefit plans in 2019 . For the nine months ended September 30, 2019 , we have contributed $16.1 million to these plans. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [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 and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Stock option compensation expense $ 0.7 $ 0.5 $ 2.0 $ 1.5 RSU compensation expense 1.2 0.8 4.1 3.7 PSU compensation expense (1.0 ) (2.5 ) 0.2 0.8 Total stock-based compensation expense $ 0.9 $ (1.2 ) $ 6.3 $ 6.0 We generally recognize compensation expense for stock-based awards ratably over the vesting period. Stock-based compensation expense for each of the nine months ended September 30, 2019 and 2018 includes $1.0 million of expense related to stock awards granted to eligible non-employee directors, which were fully vested on the grant date. The following table summarizes our unrecognized compensation expense and the weighted-average period over which the expense will be recognized as of September 30, 2019 : September 30, 2019 Unrecognized Weighted Average Compensation Years Expense To Be (in millions, except weighted average years) Expense Recognized Over Stock options $4.2 2.0 RSUs $6.8 2.0 PSUs $5.7 2.1 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories The components of inventories were as follows: (in millions) September 30, December 31, Raw materials $ 43.2 $ 55.4 Work in process 3.9 4.3 Finished goods 265.4 280.9 Total inventories $ 312.5 $ 340.6 |
Goodwill And Identifiable Intan
Goodwill And Identifiable Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
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 2018 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 2019 and concluded that no impairment existed. Changes in the net carrying amount of goodwill by segment were as follows: (in millions) ACCO ACCO ACCO Total Balance at December 31, 2018 $ 375.6 $ 165.6 $ 167.7 $ 708.9 Acquisitions — — 12.3 12.3 Foreign currency translation — (10.4 ) (1.1 ) (11.5 ) Balance at September 30, 2019 $ 375.6 $ 155.2 $ 178.9 $ 709.7 The goodwill balance is net of $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. Identifiable Intangible Assets Foroni Acquisition The preliminary valuation of identifiable intangible assets of $10.2 million acquired in the Foroni Acquisition includes an amortizable trade name, "Foroni ® ," which has been recorded at its estimated fair value. The fair value of the trade name was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The Foroni ® trade name is expected to be amortized over 23 years on a straight-line basis. Cumberland Asset Acquisition The valuation of identifiable intangible assets of $3.2 million acquired in the Cumberland Asset Acquisition includes an amortizable trade name and amortizable customer relationships, which have been recorded at their estimated fair values. The fair value of the trade name was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The fair value of the customer relationships was determined using the multi-period excess earnings method which is based on the present value of the projected after-tax cash flows. The amortizable trade name is expected to be amortized over 10 years on a straight-line basis while the customer relationships will be amortized on an accelerated basis over 7 years from January 31, 2019, the date the Cumberland assets were acquired by the Company. The allocation of the identifiable intangibles acquired in the Cumberland Asset Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name - amortizable $ 0.8 10 Years Customer relationships 2.4 7 Years Total identifiable intangibles acquired $ 3.2 GOBA Acquisition The valuation of identifiable intangible assets of $10.3 million acquired in the GOBA Acquisition includes an amortizable trade name and amortizable customer relationships, which have been recorded at their estimated fair values. The fair value of the trade name was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The fair value of the customer relationships was determined using the multi-period excess earnings method which is based on the present value of the projected after-tax cash flows. The amortizable trade name is expected to be amortized over 15 years on a straight-line basis, while the customer relationships will be amortized on an accelerated basis over 10 years from July 2, 2018 , the date GOBA was acquired by the Company. The allocation of the identifiable intangibles acquired in the GOBA Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name - amortizable $ 3.8 15 Years Customer relationships 6.5 10 Years Total identifiable intangibles acquired $ 10.3 The Company's gross carrying value and accumulated amortization by class of identifiable intangible assets as of September 30, 2019 and December 31, 2018 , was as follows: September 30, 2019 December 31, 2018 (in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 462.8 $ (44.5 ) (1) $ 418.3 $ 471.7 $ (44.5 ) (1) $ 427.2 Amortizable intangible assets: Trade names 312.9 (80.0 ) 232.9 306.0 (70.5 ) 235.5 Customer and contractual relationships 236.9 (135.4 ) 101.5 240.2 (120.5 ) 119.7 Patents 5.3 (1.2 ) 4.1 5.5 (0.9 ) 4.6 Subtotal 555.1 (216.6 ) 338.5 551.7 (191.9 ) 359.8 Total identifiable intangibles $ 1,017.9 $ (261.1 ) $ 756.8 $ 1,023.4 $ (236.4 ) $ 787.0 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. The Company’s intangible amortization expense was $8.6 million and $9.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $26.8 million and $27.2 million for the nine months ended September 30, 2019 and 2018 , respectively. Estimated amortization expense for amortizable intangible assets as of September 30, 2019 , for the current year and the next five years are as follows: (in millions) 2019 2020 2021 2022 2023 2024 Estimated amortization expense (2) $ 35.7 $ 32.4 $ 28.7 $ 25.1 $ 22.9 $ 21.2 (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, in the second quarter of 2019 and concluded that no impairment existed. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 10. Restructuring The Company recorded $2.1 million and $4.8 million of restructuring expense for the three and nine months ended September 30, 2019 , respectively. The restructuring expenses are primarily for severance costs related to cost reduction initiatives in our North America and International segments. The summary of the activity in the restructuring liability for the nine months ended September 30, 2019 , was as follows: (in millions) Balance at December 31, 2018 Provision Cash Non-cash Balance at September 30, 2019 Employee termination costs (1) $ 7.9 $ 4.1 $ (7.2 ) $ (0.2 ) $ 4.6 Termination of lease agreements (2) 1.8 0.1 (1.6 ) — 0.3 Other (3) — 0.6 (0.1 ) — 0.5 Total restructuring liability $ 9.7 $ 4.8 $ (8.9 ) $ (0.2 ) $ 5.4 (1) We expect the remaining $4.6 million employee termination costs to be substantially paid in the next 12 months. (2) We expect the remaining $0.3 million termination of lease costs to be substantially paid in the next 6 months. (3) We expect the remaining $0.5 million of other costs to be substantially paid in the next 6 months. The summary of the activity in the restructuring liability for the nine months ended September 30, 2018 , was as follows: (in millions) Balance at December 31, 2017 Provision Cash Non-cash Balance at September 30, 2018 Employee termination costs $ 12.0 $ 4.2 $ (8.7 ) $ (0.4 ) $ 7.1 Termination of lease agreements 0.8 3.5 (1.6 ) (0.1 ) 2.6 Other 0.5 0.2 (0.5 ) — 0.2 Total restructuring liability $ 13.3 $ 7.9 $ (10.8 ) $ (0.5 ) $ 9.9 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes For the three months ended September 30, 2019 , we recorded an income tax expense of $12.2 million on income before taxes of $40.2 million , for an effective rate of 30.3 percent . For the three months ended September 30, 2018 , we recorded an income tax expense of $13.4 million on income before taxes of $49.0 million , for an effective rate of 27.3 percent . For the nine months ended September 30, 2019 , we recorded an income tax expense of $38.1 million on income before taxes of $101.4 million , for an effective rate of 37.6 percent . The increase in effective tax rate for the period is primarily due to the Company increasing its reserves for uncertain tax positions during the first quarter of 2019, in connection with the Brazil Tax Assessments (see Brazil Tax Assessments below) in the amount of $5.6 million , the recording of deferred state taxes on unremitted non-U.S. earnings in the amount of $0.8 million and $1.6 million of Brazilian income taxes accrued on a contingent gain resulting from a reduction of the Brazilian indirect tax base (see " Note 18. Commitments and Contingencies - Brazil Tax Credits"). For the nine months ended September 30, 2018 , we recorded an income tax expense of $27.4 million on income before taxes of $99.1 million , for an effective rate of 27.6 percent . The tax expense for the nine months ended September 30, 2018 included an excess tax benefit resulting from the realization of stock-based compensation related tax deductions, the partial release of the reserve for the uncertain tax positions in connection with the Brazil Tax Assessments resulting from the expiration of the statute of limitation for the 2011 tax year, and positive impacts attributable to the Tax Cuts and Jobs Act (the "U.S. Tax Act") and foreign tax refunds. This was partially offset by the revaluation of the deferred tax assets and liabilities resulting from the decrease in the Swedish corporate tax rate. The U.S. federal statute of limitations remains open for the years 2015 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 ( 2014 forward), Brazil ( 2013 forward), Canada ( 2014 forward), Germany ( 2014 forward), Sweden ( 2013 forward) and the U.K. ( 2017 forward). We are currently under examination in certain foreign jurisdictions. Immaterial Out-of-Period Adjustment The $5.6 million tax expense resulting from the increase in the reserve related to uncertain tax positions in connection with the Brazil Tax Assessments that was recorded in the first quarter of 2019 should properly have been recorded in 2018 when the Company decided to appeal an administrative decision to the judicial level. The impact of recording this out-of-period adjustment to our Consolidated Statements of Income in the three months ended March 31, 2019, is a $5.6 million increase in our income tax expense and a $5.6 million decrease to our Net Income, resulting in a Net Loss for the three months ended March 31, 2019; the Company has concluded that this amount would not have been material to its Net Income for the twelve months ended December 31, 2018, or its expected Net Income for the twelve months ended December 31, 2019. Further, the impact of the correction was not material to either our Condensed Consolidated Balance Sheets, our Condensed Consolidated Statements of Cash Flows or our Consolidated Statement of Stockholders' Equity. This amount is not expected to be paid in cash in the foreseeable future, and would only be paid in the event that we do not ultimately prevail in the case. Brazil Tax Assessments In connection with our May 1, 2012, acquisition of the Mead Consumer and Office Products business ("Mead C&OP"), we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). In December of 2012, the Federal Revenue Department of the Ministry of Finance of Brazil ("FRD") issued a tax assessment against Tilibra, challenging 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" and together with the First Assessment, the "Brazil Tax Assessments"). Tilibra is disputing both of the tax assessments. The final administrative appeal of the Second Assessment was decided against the Company in 2017. In 2018, the Company decided to appeal this decision to the judicial level. In the event we do not prevail at the judicial level, the Company will be required to pay an additional amount representing attorneys' costs and fees. Accordingly, in the first quarter of 2019, the Company recorded an additional reserve in the amount of $5.6 million reflecting the increased liability, bringing the total reserve to $27.5 million for the Second Assessment. In connection with the judicial challenge, we were required to provide security to guarantee payment of the Second Assessment, 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 both of the assessments; 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. If the FRD's initial position is ultimately sustained, payment of 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 these disputes 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 percent , which is the standard penalty. While there is a possibility that a penalty of 150 percent 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 percent penalty is not more likely than not as of September 30, 2019 . 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 disputes. 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 therefore reversed $5.6 million of reserves related to 2011 in the first quarter of 2018. During the three months ended September 30, 2019 and 2018 , we accrued additional interest as a charge to current income tax expense of $0.3 million and $0.3 million , respectively, and for the nine months ended September 30, 2019 and 2018 , we accrued additional interest of $0.9 million and $0.9 million , respectively. At current exchange rates, our accrual through September 30, 2019 , including tax, penalties and interest is $33.4 million . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings per Share Total outstanding shares as of September 30, 2019 and 2018 , were 97.2 million and 102.7 million , respectively. Under our stock repurchase program, for the three and nine months ended September 30, 2019 , we repurchased and retired 2.3 million and 7.0 million shares, respectively. For the three and nine months ended September 30, 2018 , the shares repurchased and retired were 2.0 million and 6.0 million , respectively. For the nine months ended September 30, 2019 and 2018 , we acquired 0.5 million and 0.6 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 awards 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. Our weighted-average shares outstanding for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Weighted-average number of shares of common stock outstanding - basic 97.6 103.8 100.4 105.6 Stock options 0.4 1.1 0.4 1.1 Restricted stock units 0.9 1.0 1.1 1.2 Weighted-average shares and assumed conversions - diluted 98.9 105.9 101.9 107.9 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 and nine months ended September 30, 2019 , the number of anti-dilutive shares was approximately 5.0 million and 4.7 million , respectively, and for the three and nine months ended September 30, 2018 , the number of anti-dilutive shares was approximately 3.8 million and 3.6 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 against the U.S. dollar include the 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, Japan and New Zealand, and are designated as cash flow hedges. Unrealized gains and losses on these contracts are deferred in Accumulated Other Comprehensive Income ("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 September 30, 2019 and December 31, 2018 , we had cash-flow-designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $103.7 million and $98.7 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 September 2020 , except for one relating to intercompany loans which extends to December 2020. As of September 30, 2019 and December 31, 2018 , we had undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $85.5 million and $113.3 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of September 30, 2019 and December 31, 2018 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet September 30, 2019 December 31, Balance Sheet September 30, 2019 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 2.0 $ 3.3 Other current liabilities $ 0.3 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets — 0.6 Other current liabilities 1.0 1.7 Foreign exchange contracts Other non-current assets 1.5 12.7 Other non-current liabilities 1.5 12.7 Total derivatives $ 3.5 $ 16.6 $ 2.8 $ 14.5 The following tables summarize the pre-tax effect of our derivative financial instruments on the condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed 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 September 30, Three Months Ended September 30, (in millions) 2019 2018 2019 2018 Cash flow hedges: Foreign exchange contracts $ 2.7 $ (3.6 ) Cost of products sold $ (0.7 ) $ 2.6 The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed 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 Nine Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Cash flow hedges: Foreign exchange contracts $ 2.3 $ (1.6 ) Cost of products sold $ (3.6 ) $ 5.5 The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income Location of (Gain) Loss Recognized in Amount of (Gain) Loss Amount of (Gain) Loss Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Foreign exchange contracts Other (income) expense, net $ (0.2 ) $ 1.0 $ (0.7 ) $ 1.4 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : (in millions) September 30, December 31, Assets: Forward currency contracts $ 3.5 $ 16.6 Liabilities: Forward currency contracts $ 2.8 $ 14.5 Our forward currency contracts are included in " Other current assets ," " Other non-current assets ," " Other current liabilities " or " Other non-current liabilities ." 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 $923.5 million and $888.0 million and the estimated fair value of total debt was $936.1 million and $848.6 million at September 30, 2019 and December 31, 2018 , 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) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 15. Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) is defined as net (loss) income 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) Derivative Unrecognized Accumulated Balance at December 31, 2018 $ 2.1 $ (299.2 ) $ (164.6 ) $ (461.7 ) Other comprehensive loss before reclassifications, net of tax 1.4 (22.4 ) 3.2 (17.8 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (2.3 ) — 3.4 1.1 Balance at September 30, 2019 $ 1.2 $ (321.6 ) $ (158.0 ) $ (478.4 ) The reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Details about Accumulated Other Comprehensive Income Components Gain (loss) on cash flow hedges: Foreign exchange contracts $ 0.7 $ (2.6 ) $ 3.6 $ (5.5 ) Cost of products sold Tax (expense) benefit (0.4 ) 0.8 (1.3 ) 1.6 Income tax expense Net of tax $ 0.3 $ (1.8 ) $ 2.3 $ (3.9 ) Defined benefit plan items: Amortization of actuarial loss $ (1.4 ) $ (1.4 ) $ (3.9 ) $ (4.3 ) (1) Amortization of prior service cost (0.2 ) (0.1 ) (0.4 ) (0.3 ) (1) Total before tax (1.6 ) (1.5 ) (4.3 ) (4.6 ) Tax benefit 0.5 0.4 0.9 1.1 Income tax expense Net of tax $ (1.1 ) $ (1.1 ) $ (3.4 ) $ (3.5 ) Total reclassifications for the period, net of tax $ (0.8 ) $ (2.9 ) $ (1.1 ) $ (7.4 ) (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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 16. Revenue Recognition 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 received 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. 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 account for shipping and handling activities as a fulfillment activity, and therefore accrues the expense of freight and distribution in " Cost of products sold " when product is shipped. Service or Extended Maintenance Agreements ("EMAs") As of December 31, 2018 , there was $5.0 million of unearned revenue associated with outstanding EMAs, primarily reported in " Other current liabilities ." During the three and nine months ended September 30, 2019 , $0.8 million and $3.7 million , respectively, of the unearned revenue was recognized. As of September 30, 2019 , the amount of unearned revenue was $4.8 million . We expect to recognize approximately $4.2 million of the unearned amount in the next 12 months and $0.6 million in periods beyond the next 12 months. The following tables present our net sales disaggregated by regional geography (1) , based upon our reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 United States $ 235.8 $ 227.6 $ 646.4 $ 617.7 Canada 36.6 35.8 94.3 94.1 ACCO Brands North America 272.4 263.4 740.7 711.8 ACCO Brands EMEA (2) 133.1 143.1 407.9 438.1 Australia/N.Z. 37.1 41.4 100.7 118.8 Latin America 52.1 47.6 134.8 106.7 Asia-Pacific 11.0 11.8 34.2 36.5 ACCO Brands International 100.2 100.8 269.7 262.0 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 (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. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Product and services transferred at a point in time $ 489.8 $ 493.3 $ 1,370.4 $ 1,372.0 Product and services transferred over time 15.9 14.0 47.9 39.9 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 |
Information On Business Segment
Information On Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 17. 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 other end-user demanded branded products 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 other end-user demanded brands includes both globally and regionally recognized brands. 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; wholesalers; and contract stationers. We also sell directly to commercial and consumer end-users through our e-commerce platform and our direct sales organization. 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 year-end calendar purchases. We expect sales of consumer products to become an increasingly greater percentage of our revenue as demand for consumer products is 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 ® , Barrilito ® , Foroni ® , 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 schools, businesses and homes. The majority of revenue in this segment is related to consumer products and is associated with the "back-to-school" season and year-end calendar purchases. We expect sales of consumer products to become an increasingly greater percentage of our revenue as demand for consumer products is faster growing than most business-related products. Net sales by business segment for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 ACCO Brands North America $ 272.4 $ 263.4 $ 740.7 $ 711.8 ACCO Brands EMEA 133.1 143.1 407.9 438.1 ACCO Brands International 100.2 100.8 269.7 262.0 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 Operating income by business segment for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 ACCO Brands North America $ 33.7 $ 33.7 $ 101.1 $ 88.1 ACCO Brands EMEA 13.8 14.6 37.1 37.1 ACCO Brands International 10.8 16.1 20.5 25.2 Segment operating income 58.3 64.4 158.7 150.4 Corporate (9.5 ) (6.9 ) (30.6 ) (29.4 ) Operating income (1) 48.8 57.5 128.1 121.0 Interest expense 11.5 11.6 33.6 30.9 Interest income (0.7 ) (1.1 ) (2.9 ) (3.5 ) Non-operating pension income (1.3 ) (2.6 ) (4.1 ) (7.1 ) Other (income) expense, net (0.9 ) 0.6 0.1 1.6 Income before income tax $ 40.2 $ 49.0 $ 101.4 $ 99.1 (1) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 18. Commitments and Contingencies Pending Litigation - Brazil Tax Assessments 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 - Brazil Tax Assessments " for details on tax assessments issued by the FRD against Tilibra challenging the tax deduction of goodwill from Tilibra's taxable income for the years 2007 through 2010. If the FRD's initial position is ultimately sustained, payment of the amount assessed would materially and adversely affect our cash flow in the year of settlement. Brazil Tax Credits In March 2017, the Supreme Court of Brazil ruled against the Brazilian tax authority in a leading case related to the computation of certain indirect taxes. The Supreme Court ruled that the indirect tax base should not include a value-added tax known as "ICMS." The Supreme Court decision, in principle, affects all applicable judicial proceedings in progress, and reduces future indirect taxes on our Brazilian subsidiary, Tilibra. However, the Brazilian tax authority has filed an appeal seeking clarification of certain matters, including the amount by which taxpayers would be entitled to reduce their indirect tax base (i.e. the gross ICMS collected or the net ICMS paid). The appeal also requests a modulation of the decision’s effects, which may limit its retrospective impact on taxpayers, including Tilibra. Tilibra has paid and continues to pay these indirect taxes on a tax base which includes the gross ICMS collected. It has also filed legal actions in Brazil to request reimbursement of these excess tax payments by way of future credits ("Tax Credits") and for permission to exclude the gross ICMS collected from the tax base in future periods. Tilibra’s legal actions cover various time periods and some have been finally decided in a court of law in favor of Tilibra while others are still pending a final decision. Due to the uncertainties associated with the scope of the application of the Brazilian Supreme Court’s ruling, taking into account the Brazilian tax authority’s appeal and request for modulation, the Company is treating the potential recovery resulting from the Tax Credits as a contingent gain and intends to record as income only the amount of Tax Credits actually realized in the periods monetized. As such, the Company will recognize income when Tilibra receives a cash flow benefit from applying the Tax Credits against various taxes payable in Brazil. The benefit of the Tax Credits realized by the Company will be recorded in the Consolidated Statements of Income in the line item " Other (income) expense, net ." Tilibra has Tax Credits in the amount of $4.3 million which it reasonably expects to offset against Brazilian taxes in the fourth quarter of 2019. This represents the amount of Tax Credits for the periods for which Tilibra has received favorable final court decisions and assumes that only the net amount of ICMS paid can be excluded from the tax base. The value of these Tax Credits was recorded as a gain in Tilibra’s local statutory accounts during the third quarter of 2019, resulting in Brazilian federal taxes payable of approximately $1.6 million . Final decisions in the remaining legal actions Tilibra has filed may result in additional Tax Credits that could be monetized in future periods. Further, a favorable decision in the leading case by the Brazilian Supreme Court on the methodology to compute the Tax Credits (i.e. gross ICMS collected) would result in additional Tax Credits being available to Tilibra. The amount of these additional Tax Credits may be material. Foroni has also filed legal actions in Brazil, which seek to recover these excess indirect tax payments made prior to the acquisition by Tilibra. The Company also intends to recognize income for Tax Credits from Foroni when Foroni receives a cash flow benefit from applying such Tax Credits against various taxes payable in Brazil. Any net cash benefit recognized as a result of Tax Credits arising from periods prior to August 1, 2019, must be remitted to the former owners of Foroni in accordance with the terms of the quota purchase agreement. 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 Brazil Tax Assessments, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 19. Subsequent Events Dividends On October 29, 2019 , the Company's Board of Directors declared a quarterly cash dividend of 6.5¢ cent per share on its common stock, representing an increase of 8.3 percent from 6.0¢ cent in the prior quarter. The dividend is payable on December 18, 2019 to stockholders of record as of the close of business on November 29, 2019 . 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 Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements | The cumulative effect of the changes on our January 1, 2019, opening Condensed Consolidated Balance Sheet due to the adoption of ASU 2016-02 was as follows: (in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets: Property, plant and equipment, net $ 263.7 $ (0.9 ) $ 262.8 Right of use asset, leases — 90.9 90.9 Liabilities and stockholders' equity: Current portion of long-term debt 39.5 (0.1 ) 39.4 Lease liabilities — 24.1 24.1 Long-term debt, net 843.0 (0.1 ) 842.9 Long-term lease liabilities 11.0 65.6 76.6 Accumulated deficit (656.8 ) 0.5 (656.3 ) The impact of the adoption of ASU 2016-02 on our Condensed Consolidated Balance Sheet for the period ended September 30, 2019 was as follows: Balance at September 30, 2019 (in millions) As Reported Balances without adoption of ASU 2016-02 Effect of Change Higher/(Lower) Condensed Consolidated Balance Sheet: Assets: Property, plant and equipment, net $ 259.4 $ 260.2 $ (0.8 ) Right of use asset, leases 95.8 — 95.8 Liabilities and stockholders' equity: Current portion of long-term debt 31.6 31.7 (0.1 ) Lease liabilities 20.6 0.3 20.3 Long-term debt, net 882.5 882.6 (0.1 ) Long-term lease liabilities 84.6 10.2 74.4 Accumulated deficit (611.3 ) (611.8 ) 0.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) At July 2, 2018 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 39.1 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 10.1 Deferred tax liabilities 3.1 Other non-current liabilities 6.5 Fair value of liabilities assumed $ 19.7 Less fair value of assets acquired: Cash acquired 1.9 Accounts receivable 30.0 Inventory 7.1 Property, plant and equipment 0.6 Identifiable intangibles 10.3 Deferred tax assets 2.0 Other assets 4.2 Fair value of assets acquired $ 56.1 Goodwill $ 2.7 |
Long-Term Debt And Short-Term_2
Long-Term Debt And Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : (in millions) September 30, December 31, Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 1.75% at September 30, 2019) $ 273.0 $ — Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2018) — 289.0 USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.94% at September 30, 2019) 98.7 — Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.76% at September 30, 2019) 40.8 — Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.56% at December 31, 2018) — 43.0 U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.94% at September 30, 2019) 64.7 — U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 4.36% at December 31, 2018) — 106.8 Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.78% at September 30, 2019) 67.7 — Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.54% at December 31, 2018) — 73.9 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 375.0 375.0 Other borrowings 3.6 0.3 Total debt 923.5 888.0 Less: Current portion 35.2 39.5 Debt issuance costs, unamortized 5.8 5.5 Long-term debt, net $ 882.5 $ 843.0 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2019 Operating lease cost $ 7.3 $ 21.7 Sublease income (0.5 ) (1.3 ) Total lease cost $ 6.8 $ 20.4 Other information related to leases was as follows: Nine Months Ended September 30, (in millions, except lease term and discount rate) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 25.6 Weighted average remaining lease term: Operating leases 7.2 years Weighted average discount rate: Operating leases 5.3 % |
Future Minimum Lease Payments | Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of September 30, 2019 were as follows: (in millions) 2019 $ 6.8 2020 24.7 2021 20.8 2022 17.0 2023 12.9 2024 11.4 Thereafter 40.3 Total minimum lease payments 133.9 Less imputed interest 28.2 Future minimum payments for leases, net of sublease rental income and imputed interest $ 105.7 |
Pension And Other Retiree Ben_2
Pension And Other Retiree Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Pension Post-retirement U.S. International (in millions) 2019 2018 2019 2018 2019 2018 Service cost $ 0.3 $ 0.4 $ 0.3 $ 0.6 $ — $ — Interest cost 1.8 1.6 3.3 3.1 0.1 0.1 Expected return on plan assets (2.9 ) (2.9 ) (5.1 ) (5.6 ) — — Amortization of net loss (gain) 0.6 0.7 0.9 0.8 (0.1 ) (0.1 ) Amortization of prior service cost 0.1 0.1 0.1 — — — Curtailment gain — — — (0.6 ) — — Net periodic benefit income (1) $ (0.1 ) $ (0.1 ) $ (0.5 ) $ (1.7 ) $ — $ — Nine Months Ended September 30, Pension Post-retirement U.S. International (in millions) 2019 2018 2019 2018 2019 2018 Service cost $ 1.0 $ 1.2 $ 0.9 $ 1.6 $ — $ — Interest cost 5.5 5.0 10.1 9.8 0.2 0.1 Expected return on plan assets (8.7 ) (8.8 ) (15.4 ) (17.3 ) — — Amortization of net loss (gain) 1.6 2.0 2.6 2.6 (0.3 ) (0.3 ) Amortization of prior service cost 0.3 0.3 0.1 — — — Curtailment gain — — — (0.6 ) — — Net periodic benefit income (1) $ (0.3 ) $ (0.3 ) $ (1.7 ) $ (3.9 ) $ (0.1 ) $ (0.2 ) (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) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [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 and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Stock option compensation expense $ 0.7 $ 0.5 $ 2.0 $ 1.5 RSU compensation expense 1.2 0.8 4.1 3.7 PSU compensation expense (1.0 ) (2.5 ) 0.2 0.8 Total stock-based compensation expense $ 0.9 $ (1.2 ) $ 6.3 $ 6.0 |
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 September 30, 2019 : September 30, 2019 Unrecognized Weighted Average Compensation Years Expense To Be (in millions, except weighted average years) Expense Recognized Over Stock options $4.2 2.0 RSUs $6.8 2.0 PSUs $5.7 2.1 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: (in millions) September 30, December 31, Raw materials $ 43.2 $ 55.4 Work in process 3.9 4.3 Finished goods 265.4 280.9 Total inventories $ 312.5 $ 340.6 |
Goodwill And Identifiable Int_2
Goodwill And Identifiable Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Changes in Net Carrying Amount of Goodwill by Segment | Changes in the net carrying amount of goodwill by segment were as follows: (in millions) ACCO ACCO ACCO Total Balance at December 31, 2018 $ 375.6 $ 165.6 $ 167.7 $ 708.9 Acquisitions — — 12.3 12.3 Foreign currency translation — (10.4 ) (1.1 ) (11.5 ) Balance at September 30, 2019 $ 375.6 $ 155.2 $ 178.9 $ 709.7 |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The Company's gross carrying value and accumulated amortization by class of identifiable intangible assets as of September 30, 2019 and December 31, 2018 , was as follows: September 30, 2019 December 31, 2018 (in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 462.8 $ (44.5 ) (1) $ 418.3 $ 471.7 $ (44.5 ) (1) $ 427.2 Amortizable intangible assets: Trade names 312.9 (80.0 ) 232.9 306.0 (70.5 ) 235.5 Customer and contractual relationships 236.9 (135.4 ) 101.5 240.2 (120.5 ) 119.7 Patents 5.3 (1.2 ) 4.1 5.5 (0.9 ) 4.6 Subtotal 555.1 (216.6 ) 338.5 551.7 (191.9 ) 359.8 Total identifiable intangibles $ 1,017.9 $ (261.1 ) $ 756.8 $ 1,023.4 $ (236.4 ) $ 787.0 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. |
Estimated Amortization Expense for Future Periods | Estimated amortization expense for amortizable intangible assets as of September 30, 2019 , for the current year and the next five years are as follows: (in millions) 2019 2020 2021 2022 2023 2024 Estimated amortization expense (2) $ 35.7 $ 32.4 $ 28.7 $ 25.1 $ 22.9 $ 21.2 (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. |
Cumberland Asset Acquisition | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The allocation of the identifiable intangibles acquired in the Cumberland Asset Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name - amortizable $ 0.8 10 Years Customer relationships 2.4 7 Years Total identifiable intangibles acquired $ 3.2 |
GOBA Internacional, SA de CV | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The allocation of the identifiable intangibles acquired in the GOBA Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name - amortizable $ 3.8 15 Years Customer relationships 6.5 10 Years Total identifiable intangibles acquired $ 10.3 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | The summary of the activity in the restructuring liability for the nine months ended September 30, 2019 , was as follows: (in millions) Balance at December 31, 2018 Provision Cash Non-cash Balance at September 30, 2019 Employee termination costs (1) $ 7.9 $ 4.1 $ (7.2 ) $ (0.2 ) $ 4.6 Termination of lease agreements (2) 1.8 0.1 (1.6 ) — 0.3 Other (3) — 0.6 (0.1 ) — 0.5 Total restructuring liability $ 9.7 $ 4.8 $ (8.9 ) $ (0.2 ) $ 5.4 (1) We expect the remaining $4.6 million employee termination costs to be substantially paid in the next 12 months. (2) We expect the remaining $0.3 million termination of lease costs to be substantially paid in the next 6 months. (3) We expect the remaining $0.5 million of other costs to be substantially paid in the next 6 months. The summary of the activity in the restructuring liability for the nine months ended September 30, 2018 , was as follows: (in millions) Balance at December 31, 2017 Provision Cash Non-cash Balance at September 30, 2018 Employee termination costs $ 12.0 $ 4.2 $ (8.7 ) $ (0.4 ) $ 7.1 Termination of lease agreements 0.8 3.5 (1.6 ) (0.1 ) 2.6 Other 0.5 0.2 (0.5 ) — 0.2 Total restructuring liability $ 13.3 $ 7.9 $ (10.8 ) $ (0.5 ) $ 9.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our weighted-average shares outstanding for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Weighted-average number of shares of common stock outstanding - basic 97.6 103.8 100.4 105.6 Stock options 0.4 1.1 0.4 1.1 Restricted stock units 0.9 1.0 1.1 1.2 Weighted-average shares and assumed conversions - diluted 98.9 105.9 101.9 107.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet September 30, 2019 December 31, Balance Sheet September 30, 2019 December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 2.0 $ 3.3 Other current liabilities $ 0.3 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets — 0.6 Other current liabilities 1.0 1.7 Foreign exchange contracts Other non-current assets 1.5 12.7 Other non-current liabilities 1.5 12.7 Total derivatives $ 3.5 $ 16.6 $ 2.8 $ 14.5 |
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 and nine months ended September 30, 2019 and 2018 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed 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 September 30, Three Months Ended September 30, (in millions) 2019 2018 2019 2018 Cash flow hedges: Foreign exchange contracts $ 2.7 $ (3.6 ) Cost of products sold $ (0.7 ) $ 2.6 The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Condensed 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 Nine Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Cash flow hedges: Foreign exchange contracts $ 2.3 $ (1.6 ) Cost of products sold $ (3.6 ) $ 5.5 The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income Location of (Gain) Loss Recognized in Amount of (Gain) Loss Amount of (Gain) Loss Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Foreign exchange contracts Other (income) expense, net $ (0.2 ) $ 1.0 $ (0.7 ) $ 1.4 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : (in millions) September 30, December 31, Assets: Forward currency contracts $ 3.5 $ 16.6 Liabilities: Forward currency contracts $ 2.8 $ 14.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) Derivative Unrecognized Accumulated Balance at December 31, 2018 $ 2.1 $ (299.2 ) $ (164.6 ) $ (461.7 ) Other comprehensive loss before reclassifications, net of tax 1.4 (22.4 ) 3.2 (17.8 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (2.3 ) — 3.4 1.1 Balance at September 30, 2019 $ 1.2 $ (321.6 ) $ (158.0 ) $ (478.4 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Details about Accumulated Other Comprehensive Income Components Gain (loss) on cash flow hedges: Foreign exchange contracts $ 0.7 $ (2.6 ) $ 3.6 $ (5.5 ) Cost of products sold Tax (expense) benefit (0.4 ) 0.8 (1.3 ) 1.6 Income tax expense Net of tax $ 0.3 $ (1.8 ) $ 2.3 $ (3.9 ) Defined benefit plan items: Amortization of actuarial loss $ (1.4 ) $ (1.4 ) $ (3.9 ) $ (4.3 ) (1) Amortization of prior service cost (0.2 ) (0.1 ) (0.4 ) (0.3 ) (1) Total before tax (1.6 ) (1.5 ) (4.3 ) (4.6 ) Tax benefit 0.5 0.4 0.9 1.1 Income tax expense Net of tax $ (1.1 ) $ (1.1 ) $ (3.4 ) $ (3.5 ) Total reclassifications for the period, net of tax $ (0.8 ) $ (2.9 ) $ (1.1 ) $ (7.4 ) (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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our net sales disaggregated by regional geography (1) , based upon our reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 United States $ 235.8 $ 227.6 $ 646.4 $ 617.7 Canada 36.6 35.8 94.3 94.1 ACCO Brands North America 272.4 263.4 740.7 711.8 ACCO Brands EMEA (2) 133.1 143.1 407.9 438.1 Australia/N.Z. 37.1 41.4 100.7 118.8 Latin America 52.1 47.6 134.8 106.7 Asia-Pacific 11.0 11.8 34.2 36.5 ACCO Brands International 100.2 100.8 269.7 262.0 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 (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. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Product and services transferred at a point in time $ 489.8 $ 493.3 $ 1,370.4 $ 1,372.0 Product and services transferred over time 15.9 14.0 47.9 39.9 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 |
Information On Business Segme_2
Information On Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Reporting Segments | Net sales by business segment for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 ACCO Brands North America $ 272.4 $ 263.4 $ 740.7 $ 711.8 ACCO Brands EMEA 133.1 143.1 407.9 438.1 ACCO Brands International 100.2 100.8 269.7 262.0 Net sales $ 505.7 $ 507.3 $ 1,418.3 $ 1,411.9 |
Schedule of Operating Income by Reporting Segment | Operating income by business segment for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 ACCO Brands North America $ 33.7 $ 33.7 $ 101.1 $ 88.1 ACCO Brands EMEA 13.8 14.6 37.1 37.1 ACCO Brands International 10.8 16.1 20.5 25.2 Segment operating income 58.3 64.4 158.7 150.4 Corporate (9.5 ) (6.9 ) (30.6 ) (29.4 ) Operating income (1) 48.8 57.5 128.1 121.0 Interest expense 11.5 11.6 33.6 30.9 Interest income (0.7 ) (1.1 ) (2.9 ) (3.5 ) Non-operating pension income (1.3 ) (2.6 ) (4.1 ) (7.1 ) Other (income) expense, net (0.9 ) 0.6 0.1 1.6 Income before income tax $ 40.2 $ 49.0 $ 101.4 $ 99.1 (1) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) - USD ($) $ in Millions | Aug. 02, 2019 | Jul. 02, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||||
Cost of acquisitions, net of cash acquired | $ 42.1 | $ 37.3 | ||
Industria Grafica Foroni Ltda | ||||
Business Acquisition [Line Items] | ||||
Cost of acquisitions, net of cash acquired | $ 42.1 | |||
GOBA Internacional, SA de CV | ||||
Business Acquisition [Line Items] | ||||
Cost of acquisitions, net of cash acquired | $ 37.2 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Cumulative Effect of Changes due to Adoption of ASU 2016-02) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets: | |||
Property, plant and equipment, net | $ 259.4 | $ 262.8 | $ 263.7 |
Right of use asset, leases | 95.8 | 90.9 | 0 |
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | 31.6 | 39.4 | 39.5 |
Lease liabilities | 20.6 | 24.1 | 0 |
Long-term debt, net | 882.5 | 842.9 | 843 |
Long-term lease liabilities | 84.6 | 76.6 | 11 |
Accumulated deficit | $ (611.3) | (656.3) | $ (656.8) |
Accounting Standards Update 2016-02 | |||
Assets: | |||
Property, plant and equipment, net | (0.9) | ||
Right of use asset, leases | 90.9 | ||
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | (0.1) | ||
Lease liabilities | 24.1 | ||
Long-term debt, net | (0.1) | ||
Long-term lease liabilities | 65.6 | ||
Accumulated deficit | $ 0.5 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Impact of Adoption of ASU 2016-02) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets: | |||
Property, plant and equipment, net | $ 259.4 | $ 262.8 | $ 263.7 |
Right of use asset, leases | 95.8 | 90.9 | 0 |
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | 31.6 | 39.4 | 39.5 |
Lease liabilities | 20.6 | 24.1 | 0 |
Long-term debt, net | 882.5 | 842.9 | 843 |
Long-term lease liabilities | 84.6 | 76.6 | 11 |
Accumulated deficit | (611.3) | (656.3) | $ (656.8) |
Accounting Standards Update 2016-02 | |||
Assets: | |||
Property, plant and equipment, net | (0.9) | ||
Right of use asset, leases | 90.9 | ||
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | (0.1) | ||
Lease liabilities | 24.1 | ||
Long-term debt, net | (0.1) | ||
Long-term lease liabilities | 65.6 | ||
Accumulated deficit | $ 0.5 | ||
Balances without adoption of ASU 2016-02 | |||
Assets: | |||
Property, plant and equipment, net | 260.2 | ||
Right of use asset, leases | 0 | ||
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | 31.7 | ||
Lease liabilities | 0.3 | ||
Long-term debt, net | 882.6 | ||
Long-term lease liabilities | 10.2 | ||
Accumulated deficit | (611.8) | ||
Effect of Change Higher/(Lower) | Accounting Standards Update 2016-02 | |||
Assets: | |||
Property, plant and equipment, net | (0.8) | ||
Right of use asset, leases | 95.8 | ||
Liabilities and stockholders' equity: | |||
Current portion of long-term debt | (0.1) | ||
Lease liabilities | 20.3 | ||
Long-term debt, net | (0.1) | ||
Long-term lease liabilities | 74.4 | ||
Accumulated deficit | $ 0.5 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) R$ in Millions, $ in Millions, $ in Millions, $ in Millions | Aug. 02, 2019USD ($) | Aug. 02, 2019BRL (R$) | Jan. 31, 2019USD ($) | Jan. 31, 2019AUD ($) | Jul. 02, 2018USD ($) | Jul. 02, 2018MXN ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Cost of acquisitions, net of cash acquired | $ 42.1 | $ 37.3 | |||||||||
Goodwill | $ 709.7 | 709.7 | $ 708.9 | ||||||||
Industria Grafica Foroni Ltda | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business, gross | $ 42.1 | R$ 159.5 | |||||||||
Debt | 7.6 | ||||||||||
Cost of acquisitions, net of cash acquired | 42.1 | ||||||||||
Revenue of acquired business since acquisition date | $ 5.7 | 5.7 | |||||||||
Goodwill | 11.9 | ||||||||||
Business acquisition, consideration held in escrow | $ 6.6 | R$ 25.0 | |||||||||
Cumberland Asset Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business, gross | $ 6 | $ 8.2 | |||||||||
GOBA Internacional, SA de CV | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business, gross | $ 39.9 | $ 796.8 | |||||||||
Cash acquired | 1.9 | ||||||||||
Cost of acquisitions, net of cash acquired | 37.2 | ||||||||||
Revenue of acquired business since acquisition date | $ 23.7 | ||||||||||
Goodwill | 2.7 | ||||||||||
Working capital adjustments to purchase price | (0.8) | ||||||||||
Business acquisition, consideration held in escrow | $ 5.8 | $ 115 | |||||||||
Selling, General and Administrative Expenses | Industria Grafica Foroni Ltda | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction related costs | 1.3 | ||||||||||
Selling, General and Administrative Expenses | Cumberland Asset Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction related costs | $ 0.1 | ||||||||||
Selling, General and Administrative Expenses | GOBA Internacional, SA de CV | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction related costs | $ 1.1 | ||||||||||
Maximum | Industria Grafica Foroni Ltda | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Escrow period | 6 years | 6 years | |||||||||
Maximum | GOBA Internacional, SA de CV | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Escrow period | 5 years | 5 years |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Aug. 02, 2019 | Jul. 02, 2018 | Sep. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 709.7 | $ 708.9 | |||
Industria Grafica Foroni Ltda | |||||
Business Acquisition [Line Items] | |||||
Purchase price, net of working capital adjustment | $ 42.1 | ||||
Accounts payable and accrued liabilities | 12.1 | ||||
Deferred tax liabilities | 5.2 | ||||
Debt | 7.6 | ||||
Lease liabilities | 4.8 | ||||
Fair value of liabilities assumed | 29.7 | ||||
Cash acquired | 0 | ||||
Accounts receivable | 17.5 | ||||
Inventory | 12.6 | ||||
Property, plant and equipment | 8.9 | ||||
Identifiable intangibles | 10.2 | ||||
Deferred tax assets | 2.2 | ||||
Right of use asset, leases | 4.8 | ||||
Other assets | 3.7 | ||||
Fair value of assets acquired | 59.9 | ||||
Goodwill | $ 11.9 | ||||
GOBA Internacional, SA de CV | |||||
Business Acquisition [Line Items] | |||||
Purchase price, net of working capital adjustment | $ 39.1 | ||||
Accounts payable and accrued liabilities | 10.1 | ||||
Deferred tax liabilities | 3.1 | ||||
Other non-current liabilities | 6.5 | ||||
Fair value of liabilities assumed | 19.7 | ||||
Cash acquired | 1.9 | ||||
Accounts receivable | 30 | ||||
Inventory | 7.1 | ||||
Property, plant and equipment | 0.6 | ||||
Identifiable intangibles | 10.3 | ||||
Deferred tax assets | 2 | ||||
Other assets | 4.2 | ||||
Fair value of assets acquired | 56.1 | ||||
Goodwill | $ 2.7 | ||||
Cumberland Asset Acquisition | |||||
Business Acquisition [Line Items] | |||||
Inventory | $ 2.8 | ||||
Identifiable intangibles | 3.2 | ||||
Fair value of assets acquired | $ 6 |
Long-Term Debt And Short-Term_3
Long-Term Debt And Short-Term Borrowings (Notes Payable and Long-term Debt) (Details) - USD ($) $ in Millions | May 23, 2019 | Jan. 27, 2017 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Total debt | $ 923.5 | $ 888 | |||
Current portion | 35.2 | 39.5 | |||
Debt issuance costs, unamortized | 5.8 | 5.5 | |||
Long-term debt, net | 882.5 | $ 842.9 | 843 | ||
Other borrowings | |||||
Debt Instrument [Line Items] | |||||
Total debt | 3.6 | 0.3 | |||
Five Year Senior Secured Credit Facility Maturing January 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 5 years | ||||
Senior Secured Notes | Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 1.75% at September 30, 2019) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 273 | 0 | |||
Line of Credit Facility, Interest Rate at Period End | 1.75% | ||||
Senior Secured Notes | Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2018) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 289 | |||
Line of Credit Facility, Interest Rate at Period End | 1.50% | ||||
Senior Secured Notes | USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.94% at September 30, 2019) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 100 | $ 98.7 | $ 0 | ||
Line of Credit Facility, Interest Rate at Period End | 3.94% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.76% at September 30, 2019) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 40.8 | 0 | |||
Line of Credit Facility, Interest Rate at Period End | 2.76% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.56% at December 31, 2018) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 43 | |||
Line of Credit Facility, Interest Rate at Period End | 3.56% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.94% at September 30, 2019) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 64.7 | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.94% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 4.36% at December 31, 2018) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 106.8 | |||
Line of Credit Facility, Interest Rate at Period End | 4.36% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.78% at September 30, 2019) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 67.7 | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 2.78% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.54% at December 31, 2018) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 73.9 | |||
Line of Credit Facility, Interest Rate at Period End | 3.54% | ||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 375 | $ 375 | |||
Stated Percentage | 5.25% | 5.25% | |||
Senior Secured Credit Facility Due May 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.25%) | ||||
Revolving Facility | Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 132.4 |
Long-Term Debt And Short-Term_4
Long-Term Debt And Short-Term Borrowings (Narrative) (Details) € in Millions, $ in Millions, $ in Millions | May 23, 2019USD ($) | Jul. 26, 2018USD ($) | Jan. 27, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 22, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 27, 2017EUR (€) | Jan. 27, 2017AUD ($) |
Debt Instrument [Line Items] | |||||||||
Payments for debt issuance costs | $ 3.3 | $ 0.6 | |||||||
Total debt | 923.5 | $ 888 | |||||||
Five Year Senior Secured Credit Facility Maturing January 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Term | 5 years | ||||||||
Secured Debt | Senior Secured Credit Facility Due May 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments for debt issuance costs | 3.3 | ||||||||
Secured Debt | USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.94% at September 30, 2019) | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 100 | 98.7 | 0 | ||||||
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 | |||||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 375 | $ 375 | |||||||
Revolving Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 600 | $ 500 | $ 400 | $ 500 | |||||
Line of Credit Facility, Increase (Decrease), Net | $ 200 | $ 100 | |||||||
Total debt | 132.4 | ||||||||
Amount available for borrowings under Senior Secured Revolving Credit Facilities | 454.8 | ||||||||
Letters of credit outstanding | $ 12.8 | ||||||||
Senior Secured Credit Facility Due May 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.25%) | ||||||||
Senior Secured Credit Facility Due May 2024 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Minimum Leverage Ratio for Payments of Dividends or Repurchase of Shares | 3.25 | 2.50 | |||||||
Minimum | Senior Secured Credit Facility Due May 2024 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Consolidated Fixed Charge Coverage Ratio | 1.25 | ||||||||
Interest Coverage Ratio | 3 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (611.3) | $ (656.3) | $ (656.8) |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ 0.5 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 7.3 | $ 21.7 |
Sublease income | (0.5) | (1.3) |
Lease, Cost | $ 6.8 | $ 20.4 |
Leases (Other Information) (Det
Leases (Other Information) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 22.4 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 25.6 |
Weighted average remaining lease term, operating leases (in years) | 7 years 2 months 12 days |
Weighted average discount rate, operating leases (as a percentage) | 5.30% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 6.8 |
2020 | 24.7 |
2021 | 20.8 |
2022 | 17 |
2023 | 12.9 |
2024 | 11.4 |
Thereafter | 40.3 |
Total minimum lease payments | 133.9 |
Less imputed interest | 28.2 |
Future minimum payments for leases, net of sublease rental income and imputed interest | $ 105.7 |
Pension And Other Retiree Ben_3
Pension And Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contributions to defined benefit plans for 2019 | $ 20.4 | $ 20.4 | |||
Contributions by company to date | 16.1 | ||||
Pension | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0.3 | $ 0.4 | 1 | $ 1.2 | |
Interest cost | 1.8 | 1.6 | 5.5 | 5 | |
Expected return on plan assets | (2.9) | (2.9) | (8.7) | (8.8) | |
Amortization of net loss (gain) | 0.6 | 0.7 | 1.6 | 2 | |
Amortization of prior service cost | 0.1 | 0.1 | 0.3 | 0.3 | |
Curtailment gain | 0 | 0 | 0 | 0 | |
Net periodic benefit income(1) | [1] | (0.1) | (0.1) | (0.3) | (0.3) |
Pension | International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0.3 | 0.6 | 0.9 | 1.6 | |
Interest cost | 3.3 | 3.1 | 10.1 | 9.8 | |
Expected return on plan assets | (5.1) | (5.6) | (15.4) | (17.3) | |
Amortization of net loss (gain) | 0.9 | 0.8 | 2.6 | 2.6 | |
Amortization of prior service cost | 0.1 | 0 | 0.1 | 0 | |
Curtailment gain | 0 | 0.6 | 0 | 0.6 | |
Net periodic benefit income(1) | [1] | (0.5) | (1.7) | (1.7) | (3.9) |
Post-retirement | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 0.1 | 0.1 | 0.2 | 0.1 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net loss (gain) | (0.1) | (0.1) | (0.3) | (0.3) | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Curtailment gain | 0 | 0 | 0 | 0 | |
Net periodic benefit income(1) | [1] | $ 0 | $ 0 | $ (0.1) | $ (0.2) |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ 0.9 | $ (1.2) | $ 6.3 | $ 6 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | 0.7 | 0.5 | 2 | 1.5 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | 1.2 | 0.8 | 4.1 | 3.7 |
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ (1) | $ (2.5) | $ 0.2 | $ 0.8 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4.2 |
Weighted Average Years Expense To Be Recognized Over | 2 years |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 6.8 |
Weighted Average Years Expense To Be Recognized Over | 2 years |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 5.7 |
Weighted Average Years Expense To Be Recognized Over | 2 years 1 month 6 days |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ 0.9 | $ (1.2) | $ 6.3 | $ 6 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | 0.7 | 0.5 | 2 | 1.5 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | 1.2 | 0.8 | 4.1 | 3.7 |
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ (1) | $ (2.5) | 0.2 | 0.8 |
Fully Vested On The Grant Date | Director | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ 1 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 43.2 | $ 55.4 |
Work in process | 3.9 | 4.3 |
Finished goods | 265.4 | 280.9 |
Total inventories | $ 312.5 | $ 340.6 |
Goodwill And Identifiable Int_3
Goodwill And Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at December 31, 2018 | $ 708.9 | |
Acquisitions | 12.3 | |
Translation | (11.5) | |
Balance at September 30, 2019 | 709.7 | |
Goodwill, accumulated impairment losses | $ 215.1 | |
ACCO Brands North America | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2018 | 375.6 | |
Acquisitions | 0 | |
Translation | 0 | |
Balance at September 30, 2019 | 375.6 | |
ACCO Brands EMEA | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2018 | 165.6 | |
Acquisitions | 0 | |
Translation | (10.4) | |
Balance at September 30, 2019 | 155.2 | |
ACCO Brands International | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2018 | 167.7 | |
Acquisitions | 12.3 | |
Translation | (1.1) | |
Balance at September 30, 2019 | $ 178.9 |
Goodwill And Identifiable Int_4
Goodwill And Identifiable Intangibles (Acquired Finite-Lived Intangibles) (Details) - USD ($) $ in Millions | Aug. 02, 2019 | Jan. 31, 2019 | Jul. 02, 2018 |
Industria Grafica Foroni Ltda | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangibles | $ 10.2 | ||
Industria Grafica Foroni Ltda | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangibles | $ 10.2 | ||
Finite-lived intangible asset, useful life | 23 years | ||
Cumberland Asset Acquisition | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangibles | $ 3.2 | ||
Cumberland Asset Acquisition | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 0.8 | ||
Finite-lived intangible asset, useful life | 10 years | ||
Cumberland Asset Acquisition | Customer and contractual relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 2.4 | ||
Finite-lived intangible asset, useful life | 7 years | ||
GOBA Internacional, SA de CV | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangibles | $ 10.3 | ||
GOBA Internacional, SA de CV | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 3.8 | ||
Finite-lived intangible asset, useful life | 15 years | ||
GOBA Internacional, SA de CV | Customer and contractual relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 6.5 | ||
Finite-lived intangible asset, useful life | 10 years |
Goodwill And Identifiable Int_5
Goodwill And Identifiable Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | $ 555.1 | $ 551.7 | |
Amortizable intangible assets, Accumulated Amortization | (216.6) | (191.9) | |
Amortizable intangible assets, Net Book Value | 338.5 | 359.8 | |
Total identifiable intangibles, Gross Carrying Amounts | 1,017.9 | 1,023.4 | |
Total identifiable intangibles, Accumulated Amortization | (261.1) | (236.4) | |
Total identifiable intangibles, Net Book Value | 756.8 | 787 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 312.9 | 306 | |
Amortizable intangible assets, Accumulated Amortization | (80) | (70.5) | |
Amortizable intangible assets, Net Book Value | 232.9 | 235.5 | |
Customer and contractual relationships | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 236.9 | 240.2 | |
Amortizable intangible assets, Accumulated Amortization | (135.4) | (120.5) | |
Amortizable intangible assets, Net Book Value | 101.5 | 119.7 | |
Patents | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 5.3 | 5.5 | |
Amortizable intangible assets, Accumulated Amortization | (1.2) | (0.9) | |
Amortizable intangible assets, Net Book Value | 4.1 | 4.6 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, gross carrying amount | 462.8 | 471.7 | |
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 | $ 418.3 | $ 427.2 | |
[1] | Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. |
Goodwill And Identifiable Int_6
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangibles | $ 8.6 | $ 9.4 | $ 26.8 | $ 27.2 | |
Estimated amortization expense, 2019 | [1] | 35.7 | 35.7 | ||
Estimated amortization expense, 2020 | [1] | 32.4 | 32.4 | ||
Estimated amortization expense, 2021 | [1] | 28.7 | 28.7 | ||
Estimated amortization expense, 2022 | [1] | 25.1 | 25.1 | ||
Estimated amortization expense, 2023 | [1] | 22.9 | 22.9 | ||
Estimated amortization expense, 2024 | [1] | $ 21.2 | $ 21.2 | ||
[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 Int_7
Goodwill And Identifiable Intangibles (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill impairment | $ 0 |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Restructuring Reserve [Roll Forward] | ||||||
Balance at Beginning of Period | $ 9.7 | $ 13.3 | ||||
Provision | $ 2.1 | $ 1.1 | 4.8 | 7.9 | ||
Cash Expenditures | (8.9) | (10.8) | ||||
Non-cash Items/ Currency Change | (0.2) | (0.5) | ||||
Balance at End of Period | 5.4 | 9.9 | 5.4 | 9.9 | ||
Employee termination costs(1) | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at Beginning of Period | 7.9 | 12 | ||||
Provision | 4.1 | 4.2 | ||||
Cash Expenditures | (7.2) | (8.7) | ||||
Non-cash Items/ Currency Change | (0.2) | (0.4) | ||||
Balance at End of Period | 4.6 | [1] | 7.1 | $ 4.6 | [1] | 7.1 |
Restructuring and Related Costs, Payment Period | 12 months | |||||
Termination of lease agreements(2) | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at Beginning of Period | $ 1.8 | 0.8 | ||||
Provision | 0.1 | 3.5 | ||||
Cash Expenditures | (1.6) | (1.6) | ||||
Non-cash Items/ Currency Change | 0 | (0.1) | ||||
Balance at End of Period | 0.3 | [2] | 2.6 | $ 0.3 | [2] | 2.6 |
Restructuring and Related Costs, Payment Period | 6 months | |||||
Other(3) | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at Beginning of Period | $ 0 | 0.5 | ||||
Provision | 0.6 | 0.2 | ||||
Cash Expenditures | (0.1) | (0.5) | ||||
Non-cash Items/ Currency Change | 0 | 0 | ||||
Balance at End of Period | $ 0.5 | [2],[3] | $ 0.2 | $ 0.5 | [2],[3] | $ 0.2 |
Restructuring and Related Costs, Payment Period | 6 months | |||||
[1] | (1) We expect the remaining $4.6 million employee termination costs to be substantially paid in the next 12 months. | |||||
[2] | (2) We expect the remaining $0.3 million termination of lease costs to be substantially paid in the next 6 months. | |||||
[3] | (3) We expect the remaining $0.5 million of other costs to be substantially paid in the next 6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | |||||||
Income tax expense | $ 12.2 | $ 13.4 | $ 38.1 | $ 27.4 | |||
Income before income tax | $ 40.2 | $ 49 | $ 101.4 | $ 99.1 | |||
Effective Income Tax Rate Reconciliation, Percent | 30.30% | 27.30% | 37.60% | 27.60% | |||
Deferred State and Local Income Tax Expense (Benefit) | $ 0.8 | ||||||
State and Local Jurisdiction | Minimum | |||||||
Income Tax Examination [Line Items] | |||||||
Statutes of limitation, period | 2 years | ||||||
State and Local Jurisdiction | Maximum | |||||||
Income Tax Examination [Line Items] | |||||||
Statutes of limitation, period | 5 years | ||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2015 | ||||||
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 | 2014 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||||
Income Tax Examination [Line Items] | |||||||
Income tax expense | $ 1.6 | $ 1.6 | |||||
Income Tax Examination, Interest Expense | 0.3 | $ 0.3 | $ 0.9 | $ 0.9 | |||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2013 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2010 | |||||||
Income Tax Examination [Line Items] | |||||||
Unrecognized Tax Benefits | $ 33.4 | $ 33.4 | |||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2012 | |||||||
Income Tax Examination [Line Items] | |||||||
Unrecognized Tax Benefits | $ 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 | Tax Year 2008 to 2010 | |||||||
Income Tax Examination [Line Items] | |||||||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 5.6 | ||||||
Unrecognized Tax Benefits | 27.5 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2011 | |||||||
Income Tax Examination [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ 5.6 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Minimum | |||||||
Income Tax Examination [Line Items] | |||||||
Penalty rate | 75.00% | 75.00% | |||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Maximum | Tax Year 2007 | |||||||
Income Tax Examination [Line Items] | |||||||
Penalty rate | 150.00% | 150.00% | |||||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2014 | ||||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2014 | ||||||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2013 | ||||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2017 | ||||||
Income tax expense (benefit) | Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | |||||||
Income Tax Examination [Line Items] | |||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 5.6 | ||||||
Net income (loss) | Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | |||||||
Income Tax Examination [Line Items] | |||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (5.6) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | ||||||||
Common Stock, Shares, Outstanding | 97,200,000 | 102,700,000 | 97,200,000 | 102,700,000 | ||||
Stock Repurchased and Retired During Period, Shares | 2,258,645 | 3,443,904 | 1,260,163 | 1,961,006 | 3,272,480 | 760,473 | 7,000,000 | 6,000,000 |
Treasury Stock, Shares, Acquired | 500,000 | 600,000 | ||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Weighted-average number of common shares outstanding - basic | 97,600,000 | 103,800,000 | 100,400,000 | 105,600,000 | ||||
Weighted-average number of common shares outstanding - diluted | 98,900,000 | 105,900,000 | 101,900,000 | 107,900,000 | ||||
Potentially dilutive shares excluded from computation of dilutive earnings per share | 5,000,000 | 3,800,000 | 4,700,000 | 3,600,000 | ||||
Stock options | ||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 400,000 | 1,100,000 | 400,000 | 1,100,000 | ||||
Restricted stock units | ||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 900,000 | 1,000,000 | 1,100,000 | 1,200,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 85.5 | $ 113.3 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 103.7 | $ 98.7 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 3.5 | $ 16.6 |
Derivative Liabilities | 2.8 | 14.5 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2 | 3.3 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.3 | 0.1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0.6 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1 | 1.7 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.5 | 12.7 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 1.5 | $ 12.7 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivatives not designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 85.5 | $ 85.5 | $ 113.3 | ||
Derivatives not designated as hedging instruments | Other (income) expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of (Gain) Loss Recognized in Income | (0.2) | $ 1 | (0.7) | $ 1.4 | |
Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 2.7 | (3.6) | 2.3 | (1.6) | |
Cash Flow Hedging | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of (Gain) Loss Reclassified from AOCI to Income (Effective Portion) | (0.7) | $ 2.6 | (3.6) | $ 5.5 | |
Cash Flow Hedging | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 103.7 | $ 103.7 | $ 98.7 |
Fair Value Of Financial Instr_3
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | $ 936.1 | $ 848.6 |
Foreign currency contracts, assets | 3.5 | 16.6 |
Foreign currency contracts, liabilities | $ 2.8 | $ 14.5 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Total debt | $ 923.5 | $ 888 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Rollforward) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2018 | $ (461.7) |
Other comprehensive loss before reclassifications, net of tax | (17.8) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 1.1 |
Balance at September 30, 2019 | (478.4) |
Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2018 | 2.1 |
Other comprehensive loss before reclassifications, net of tax | 1.4 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | (2.3) |
Balance at September 30, 2019 | 1.2 |
Foreign Currency Adjustments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2018 | (299.2) |
Other comprehensive loss before reclassifications, net of tax | (22.4) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 0 |
Balance at September 30, 2019 | (321.6) |
Unrecognized Pension and Other Post-retirement Benefit Costs | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2018 | (164.6) |
Other comprehensive loss before reclassifications, net of tax | 3.2 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 3.4 |
Balance at September 30, 2019 | $ (158) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Cost of products sold | $ (349.8) | $ (346.5) | $ (970.8) | $ (961.2) | |||||
Income before income tax | 40.2 | 49 | 101.4 | 99.1 | |||||
Income tax (expense) benefit | (12.2) | (13.4) | (38.1) | (27.4) | |||||
Net income | 28 | $ 35.9 | $ (0.6) | 35.6 | $ 25.7 | $ 10.4 | 63.3 | 71.7 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net income | (0.8) | (2.9) | (1.1) | (7.4) | |||||
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 | [1] | (1.4) | (1.4) | (3.9) | (4.3) | ||||
Amortization of prior service cost | [1] | (0.2) | (0.1) | (0.4) | (0.3) | ||||
Income before income tax | (1.6) | (1.5) | (4.3) | (4.6) | |||||
Income tax (expense) benefit | 0.5 | 0.4 | 0.9 | 1.1 | |||||
Net income | (1.1) | (1.1) | (3.4) | (3.5) | |||||
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 | 0.7 | (2.6) | 3.6 | (5.5) | |||||
Income tax (expense) benefit | (0.4) | 0.8 | (1.3) | 1.6 | |||||
Net income | $ 0.3 | $ (1.8) | $ 2.3 | $ (3.9) | |||||
[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. |
Revenue Recognition Service or
Revenue Recognition Service or Extended Maintenance Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Unearned revenue associated with outstanding contracts | $ 4.8 | $ 4.8 | $ 5 |
Revenue recognized | $ 0.8 | $ 3.7 |
Revenue Recognition (Unearned R
Revenue Recognition (Unearned Revenue) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 4.2 |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 0.6 |
Expected timing of satisfaction | 12 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 505.7 | $ 507.3 | $ 1,418.3 | $ 1,411.9 | |
Product and services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 489.8 | 493.3 | 1,370.4 | 1,372 | |
Product and services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 15.9 | 14 | 47.9 | 39.9 | |
ACCO Brands North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 272.4 | 263.4 | 740.7 | 711.8 | |
ACCO Brands North America | United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 235.8 | 227.6 | 646.4 | 617.7 | |
ACCO Brands North America | Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 36.6 | 35.8 | 94.3 | 94.1 | |
ACCO Brands EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 133.1 | 143.1 | 407.9 | 438.1 |
ACCO Brands International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 100.2 | 100.8 | 269.7 | 262 | |
ACCO Brands International | Australia/N.Z. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 37.1 | 41.4 | 100.7 | 118.8 | |
ACCO Brands International | Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 52.1 | 47.6 | 134.8 | 106.7 | |
ACCO Brands International | Asia-Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 11 | $ 11.8 | $ 34.2 | $ 36.5 | |
[1] | (2) ACCO Brands EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. |
Information On Business Segme_3
Information On Business Segments (Net Sales by Segment) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of business segments | segment | 3 | |||
Net sales | $ 505.7 | $ 507.3 | $ 1,418.3 | $ 1,411.9 |
ACCO Brands North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 272.4 | 263.4 | 740.7 | 711.8 |
ACCO Brands EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 133.1 | 143.1 | 407.9 | 438.1 |
ACCO Brands International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 100.2 | $ 100.8 | $ 269.7 | $ 262 |
Information On Business Segme_4
Information On Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | $ 48.8 | $ 57.5 | $ 128.1 | $ 121 |
Interest expense | 11.5 | 11.6 | 33.6 | 30.9 | |
Interest income | (0.7) | (1.1) | (2.9) | (3.5) | |
Non-operating pension income | (1.3) | (2.6) | (4.1) | (7.1) | |
Other (income) expense, net | (0.9) | 0.6 | 0.1 | 1.6 | |
Income before income tax | 40.2 | 49 | 101.4 | 99.1 | |
Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | 58.3 | 64.4 | 158.7 | 150.4 |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | (9.5) | (6.9) | (30.6) | (29.4) |
ACCO Brands North America | Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | 33.7 | 33.7 | 101.1 | 88.1 |
ACCO Brands EMEA | Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | 13.8 | 14.6 | 37.1 | 37.1 |
ACCO Brands International | Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | [1] | $ 10.8 | $ 16.1 | $ 20.5 | $ 25.2 |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Commitments And Contingencies N
Commitments And Contingencies Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | |||||
Income tax expense | $ 12.2 | $ 13.4 | $ 38.1 | $ 27.4 | |
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Loss Contingencies [Line Items] | |||||
Income tax expense | $ 1.6 | $ 1.6 | |||
Forecast | Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Loss Contingencies [Line Items] | |||||
Brazil Tax Credits | $ 4.3 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Oct. 29, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||||||
Common stock, dividends per share, declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |
Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends per share, declared | $ 0.060 | ||||||
Subsequent Event | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends per share, declared | $ 0.065 | ||||||
Increase (Decrease) in percent in dividends declared versus the prior period | 8.30% | ||||||
Dividends Payable, Date to be Paid | Dec. 18, 2019 | ||||||
Dividends Payable, Date of Record | Nov. 29, 2019 |
Uncategorized Items - acco-2019
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 500,000 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 500,000 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,500,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,500,000 |