Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
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 $.01 per share | ||
Trading Symbol | ACCO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 647.9 | ||
Entity Common Stock, Shares Outstanding | 95,030,156 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be issued in connection with registrant’s annual stockholders' meeting expected to be held on May 19, 2021 are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000712034 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 36.6 | $ 27.8 | |
Accounts receivable less allowances for discounts and doubtful accounts of $25.5 and $16.4, respectively | 356 | 453.7 | |
Inventories | 305.1 | 283.3 | |
Other current assets | 30.5 | 41.2 | |
Total current assets | 728.2 | 806 | |
Total property, plant and equipment | 657.8 | 651.7 | |
Less: accumulated depreciation | (416.4) | (384.6) | |
Property, plant and equipment, net | [1] | 241.4 | 267.1 |
Right of use asset, leases | 89.2 | 101.9 | |
Deferred income taxes | 136.5 | 119 | |
Goodwill | 827.4 | 718.6 | |
Identifiable intangibles, net of accumulated amortization of $307.4 and $271.9, respectively | 977 | 758.6 | |
Other non-current assets | 49 | 17.4 | |
Total assets | 3,048.7 | 2,788.6 | |
Current liabilities: | |||
Notes payable | 5.7 | 3.7 | |
Current portion of long-term debt | 70.8 | 29.5 | |
Accounts payable | 180.2 | 245.7 | |
Accrued compensation | 41 | 48.5 | |
Accrued customer program liabilities | 91.4 | 99.7 | |
Operating Lease, Liability, Current | 22.6 | 21.8 | |
Other current liabilities | 145.2 | 139.9 | |
Total current liabilities | 556.9 | 588.8 | |
Long-term debt, net of debt issuance costs of $5.5 and $5.6, respectively | 1,054.6 | 777.2 | |
Long-term lease liabilities | 76.5 | 89.8 | |
Deferred income taxes | 170.6 | 177.5 | |
Pension and post-retirement benefit obligations | 317.1 | 283.2 | |
Other non-current liabilities | 130.3 | 98.4 | |
Total liabilities | 2,306 | 2,014.9 | |
Stockholders' equity: | |||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; none issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value, 200,000,000 shares authorized; 99,129,455 and 100,412,933 shares issued and 94,942,565 and 96,445,488 outstanding, respectively | 1 | 1 | |
Treasury stock, 4,186,890 and 3,967,445 shares, respectively | (39.9) | (38.2) | |
Paid-in capital | 1,883.1 | 1,890.8 | |
Accumulated other comprehensive loss | (564.2) | (505.7) | |
Accumulated deficit | (537.3) | (574.2) | |
Total stockholders' equity | 742.7 | 773.7 | |
Total liabilities and stockholders' equity | $ 3,048.7 | $ 2,788.6 | |
[1] | Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for Sales Discounts, Doubtful Accounts and Cash Discounts, Accounts Receivable, Current | $ 25.5 | $ 16.4 |
Amortizable intangible assets, accumulated amortization | 307.4 | 271.9 |
Debt Issuance cost, unamortized | $ 5.5 | $ 5.6 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 99,129,455 | 100,412,933 |
Common stock, shares outstanding | 94,942,565 | 96,445,488 |
Treasury stock, shares | 4,186,890 | 3,967,445 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net sales | $ 1,655.2 | $ 1,955.7 | $ 1,941.2 | |
Cost of products sold | 1,162.8 | 1,322.2 | 1,313.4 | |
Gross profit | 492.4 | 633.5 | 627.8 | |
Operating costs and expenses: | ||||
Selling, general and administrative expenses | 336.3 | 389.9 | 392.4 | |
Amortization of intangibles | 32.8 | 35.4 | 36.7 | |
Restructuring charges | 10.9 | 12 | 11.7 | |
Total operating costs and expenses | 380 | 437.3 | 440.8 | |
Operating income | [1] | 112.4 | 196.2 | 187 |
Non-operating expense (income): | ||||
Interest expense | 38.8 | 43.2 | 41.2 | |
Interest income | (1) | (3.2) | (4.4) | |
Non-operating pension income | (5.6) | (5.5) | (9.3) | |
Other expense (income), net | 1.6 | (1.8) | 1.6 | |
Income before income tax | 78.6 | 163.5 | 157.9 | |
Income tax expense | 16.6 | 56.7 | 51.2 | |
Net income | $ 62 | $ 106.8 | $ 106.7 | |
Basic income per share: | ||||
Basic income per share | $ 0.65 | $ 1.07 | $ 1.02 | |
Diluted income per share: | ||||
Diluted income per share | $ 0.65 | $ 1.06 | $ 1 | |
Weighted average number of shares outstanding: | ||||
Basic | 94.9 | 99.5 | 104.8 | |
Diluted | 96.1 | 101 | 107 | |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 62 | $ 106.8 | $ 106.7 |
Other Comprehensive Income (loss), Derivatives Qualifying as Hedges, Net of Tax | |||
Unrealized (loss) income on derivative instruments, net of tax benefit (expense) of $1.1, $0.9 and $(0.8), respectively | (2.9) | (2.3) | 1.9 |
Foreign currency translation: | |||
Foreign currency translation adjustments, net of tax expense of $(3.3), $(1.3) and $(0.6), respectively | (19.3) | (0.3) | 6.2 |
Other Comprehensive Income (loss) Pension and Other Post-retirement Plans Adjustment Net Of Tax | |||
Recognition of deferred pension and other post-retirement items, net of tax benefit of $10.5, $13.6 and $2.2, respectively | (36.3) | (41.4) | (8.7) |
Other comprehensive loss, net of tax | (58.5) | (44) | (0.6) |
Comprehensive income | $ 3.5 | $ 62.8 | $ 106.1 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 1.1 | $ 0.9 | $ (0.8) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (3.3) | (1.3) | (0.6) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 10.5 | $ 13.6 | $ 2.2 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income | $ 62 | $ 106.8 | $ 106.7 |
Amortization of inventory step-up | 0 | 0.9 | 0.1 |
Loss on disposal of assets | 0.2 | 0.7 | 0.2 |
Deferred income tax (benefit) expense | (7.6) | 8.7 | 22.7 |
Depreciation | 37.9 | 34.9 | 34 |
Amortization of debt issuance costs | 2.4 | 2.3 | 2.1 |
Amortization of intangibles | 32.8 | 35.4 | 36.7 |
Stock-based compensation | 6.5 | 10.1 | 8.8 |
Loss on debt extinguishment | 0 | 0.2 | 0.3 |
Other Noncash Income (Expense) | 1.1 | 0 | 0 |
Changes in balance sheet items: | |||
Accounts receivable | 101.6 | (14.8) | 46 |
Inventories | 2.2 | 71.4 | (92.9) |
Other assets | 14.7 | (0.4) | 5.5 |
Accounts payable | (68.8) | (32.8) | 101 |
Accrued expenses and other liabilities | (58.2) | (26.7) | (72.5) |
Accrued income taxes | (7.6) | 7.2 | (3.9) |
Net cash provided by operating activities | 119.2 | 203.9 | 194.8 |
Investing activities | |||
Additions to property, plant and equipment | (15.3) | (32.8) | (34.1) |
Proceeds from the disposition of assets | 0 | 0.5 | 0.2 |
Cost of acquisitions, net of cash acquired | (339.4) | (41.3) | (38) |
Other assets acquired | 0 | (6) | 0 |
Net cash used by investing activities | (354.7) | (79.6) | (71.9) |
Financing activities | |||
Proceeds from long-term borrowings | 438.6 | 325.8 | 225.3 |
Repayments of long-term debt | (151.9) | (387.9) | (249.5) |
Proceeds (repayments) of notes payable, net | 2.1 | (8.5) | 0 |
Payments for debt issuance costs | (3.2) | (3.4) | (0.6) |
Repurchases of common stock | (18.9) | (65) | (75) |
Dividends paid | (24.6) | (24.4) | (25.1) |
Payments related to tax withholding for stock-based compensation | (1.8) | (4.2) | (7.5) |
Proceeds from the exercise of stock options | 4.4 | 4.2 | 6.8 |
Net cash provided (used) by financing activities | 244.7 | (163.4) | (125.6) |
Effect of foreign exchange rate changes on cash and cash equivalents | (0.4) | (0.1) | (7.2) |
Net increase (decrease) in cash and cash equivalents | 8.8 | (39.2) | (9.9) |
Cash and cash equivalents | |||
Beginning of the period | 27.8 | 67 | 76.9 |
End of the period | 36.6 | 27.8 | 67 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 36 | 42.1 | 37.9 |
Income taxes | $ 32.2 | $ 41.9 | $ 33.7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative effect due to the adoption of ASUs | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Paid-in Capital | Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated DeficitCumulative effect due to the adoption of ASUs |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||||||||||
Cumulative effect due to the adoption of ASUs | Accounting Standards Update 2014-09 | $ 1.6 | $ 1.6 | ||||||||||||
Balance at start of period at Dec. 31, 2017 | $ 774.1 | $ 775.7 | $ 1.1 | $ 1.1 | $ 1,999.7 | $ 1,999.7 | $ (461.1) | $ (461.1) | $ (26.4) | $ (26.4) | $ (739.2) | $ (737.6) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 106.7 | 106.7 | ||||||||||||
Gain (loss) on derivative financial instrument, net of tax | 1.9 | 1.9 | ||||||||||||
Translation impact | 6.2 | 6.2 | ||||||||||||
Pension and post-retirement adjustment, net of tax | (8.7) | (8.7) | ||||||||||||
Common stock repurchases | (75) | (75) | ||||||||||||
Stock-based compensation | 8.8 | 9.5 | (0.7) | |||||||||||
Common stock issued, net of shares withheld for employee taxes | (0.7) | 6.8 | (7.5) | |||||||||||
Dividends declared | (25.1) | (25.1) | ||||||||||||
Other | (0.1) | (0.1) | ||||||||||||
Balance at end of period at Dec. 31, 2018 | $ 789.7 | $ 790.2 | $ 1.1 | $ 1.1 | 1,941 | $ 1,941 | (461.7) | $ (461.7) | $ (33.9) | $ (33.9) | (656.8) | $ (656.3) | ||
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 | 2,058,575 | 2,646,084 | 587,509 | |||||||||||
Common stock repurchases | (5,993,959) | (5,993,959) | 0 | |||||||||||
Balance at end of period (in shares) at Dec. 31, 2018 | 102,748,700 | 106,249,322 | 3,500,622 | |||||||||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||||||||||
Cumulative effect due to the adoption of ASUs | Accounting Standards Update 2016-02 | $ 0.5 | $ 0.5 | ||||||||||||
Net income | $ 106.8 | 106.8 | ||||||||||||
Gain (loss) on derivative financial instrument, net of tax | (2.3) | (2.3) | ||||||||||||
Translation impact | (0.3) | (0.3) | ||||||||||||
Pension and post-retirement adjustment, net of tax | (41.4) | (41.4) | ||||||||||||
Common stock repurchases | (65) | $ (0.1) | (64.9) | |||||||||||
Stock-based compensation | 10.1 | 10.5 | (0.4) | |||||||||||
Common stock issued, net of shares withheld for employee taxes | (0.1) | 4.2 | $ (4.3) | |||||||||||
Dividends declared | (24.4) | (24.4) | ||||||||||||
Other | 0.1 | 0.1 | ||||||||||||
Balance at end of period at Dec. 31, 2019 | $ 773.7 | $ 1 | 1,890.8 | (505.7) | $ (38.2) | (574.2) | ||||||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||||||||||
Common stock issued, net of shares withheld for employee taxes | 1,545,942 | 2,012,765 | 466,823 | |||||||||||
Common stock repurchases | (7,849,154) | (7,849,154) | 0 | |||||||||||
Balance at end of period (in shares) at Dec. 31, 2019 | 96,445,488 | 100,412,933 | 3,967,445 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | $ 62 | 62 | ||||||||||||
Gain (loss) on derivative financial instrument, net of tax | (2.9) | (2.9) | ||||||||||||
Translation impact | (19.3) | (19.3) | ||||||||||||
Pension and post-retirement adjustment, net of tax | (36.3) | (36.3) | ||||||||||||
Common stock repurchases | (18.9) | $ 0 | (18.9) | |||||||||||
Stock-based compensation | 6.5 | 6.7 | (0.2) | |||||||||||
Common stock issued, net of shares withheld for employee taxes | 2.6 | 4.4 | $ (1.8) | |||||||||||
Dividends declared | (24.6) | (24.6) | ||||||||||||
Other | (0.1) | 0 | 0.1 | 0 | 0.1 | (0.3) | ||||||||
Balance at end of period at Dec. 31, 2020 | $ 742.7 | $ 1 | $ 1,883.1 | $ (564.2) | $ (39.9) | $ (537.3) | ||||||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||||||||||
Common stock issued, net of shares withheld for employee taxes | 1,187,369 | 1,406,814 | 219,445 | |||||||||||
Common stock repurchases | (2,690,292) | (2,690,292) | 0 | |||||||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 94,942,565 | 99,129,455 | 4,186,890 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.260 | $ 0.245 | $ 0.240 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation As used in this Annual Report on Form 10-K for the fiscal year ended December 31, 2020, the terms "ACCO Brands," "ACCO," the "Company," "we," "us," and "our" refer to ACCO Brands Corporation, a Delaware corporation incorporated in 2005, and its consolidated domestic and international subsidiaries. The management of ACCO Brands Corporation is responsible for the accuracy and internal consistency of the preparation of the consolidated financial statements and notes contained in this Annual Report on Form 10-K. The consolidated financial statements include the accounts of ACCO Brands Corporation and its domestic and international subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Effective December 17, 2020, we completed the acquisition (the "PowerA Acquisition") of PowerA, a leading provider of third-party video gaming console accessories in North America. The preliminary purchase price was $340.0 million, plus an additional earnout of up to $55.0 million in cash, contingent upon PowerA achieving one- and two-year sales and profit growth objectives, and is subject to working capital and other adjustments. The results of PowerA are included in all three of the Company's segments effective December 17, 2020. 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. The purchase price was $41.5 million inclusive of working capital adjustments. We also assumed $7.6 million of debt. The Foroni Acquisition increased our share of the back-to-school market in Brazil. The results of Foroni are included in the ACCO Brands International segment effective August 1, 2019. On July 2, 2018, we completed the acquisition (the "GOBA Acquisition") of GOBA Internacional, S.A. de C.V. ("GOBA") for a purchase price of $37.2 million, net of cash acquired and working capital adjustments. GOBA is a leading provider of Barrilito ® branded school and craft products in Mexico. The 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 results of GOBA are included in the ACCO Brands International segment as of July 2, 2018. For more information on these acquisitions, see "Note 3. Acquisitions." |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards Nature of Business ACCO Brands is a designer, marketer and manufacturer of recognized consumer and end-user demanded brands used in businesses, schools, and homes. ACCO Brands has three operating business segments based in different geographic regions. Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and other end-user demanded branded products used in businesses, schools, and homes. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing. Our product categories include computer and gaming accessories; storage and organization; notebooks; laminating, shredding, and binding machines; calendars; stapling; punching; dry erase boards; and do-it-yourself tools, among others. Our portfolio includes both globally and regionally recognized brands. 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, contract stationers, and specialist technology businesses. We also sell directly to commercial and consumer end-users through e-commerce sites and our direct sales organization. Use of Estimates Our financial statements are prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP"). Preparation of our financial statements requires us to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses presented for each reporting period in the financial statements and the related accompanying notes. Actual results could differ significantly from those estimates. We regularly review our assumptions and estimates, which are based on historical experience and, where appropriate, current business trends. Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. Accounts Receivable and Allowances for Sales/Pricing/Cash Discounts and Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for sales/pricing discounts and doubtful accounts. The allowance for sales/pricing/cash discounts represents estimated uncollectible receivables associated with the products previously sold to customers, and is recorded at the same time that the sales are recognized. The allowance is based on historical trends. The allowance for doubtful accounts represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations, usually due to a customer's potential insolvency. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults on a general formulaic basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with a specific customer. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical experience and existing economic conditions. The allowances are recorded as reductions to "Net sales" and "Accounts receivable, net." Inventories Inventories are priced at the lower of cost (principally first-in, first-out) or net realizable value. When necessary, the write-down of inventory to its net realizable value is recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as product discontinuance or engineering/material changes. These estimates could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from our expectations. Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset are capitalized; maintenance and repair costs are expensed. Purchased computer software is capitalized and amortized over the software’s useful life. The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years We capitalize interest for major capital projects. Capitalized interest is added to the cost of the underlying assets and is depreciated over the useful lives of those assets. We capitalized interest of $0.3 million, $0.5 million and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Long-Lived Assets We test long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable from its undiscounted future cash flow. When such events occur, we compare the sum of the undiscounted cash flow expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate at the time of future cash flow, derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flow. The discount rate applied to these cash flows is based on our weighted average cost of capital, computed by selecting market rates at the valuation dates for debt and equity that are reflective of the risks associated with an investment in our industry as estimated by using comparable publicly traded companies. Intangible Assets Intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. Certain of our trade names have been assigned an indefinite life as we currently anticipate that these trade names will contribute cash flows to ACCO Brands indefinitely. Amortizable intangible assets are amortized over their useful lives. We test indefinite-lived intangibles for impairment annually, during the second quarter, and during any interim period when market or business events indicate there may be a potential adverse impact on a particular intangible. The test may be on a qualitative or quantitative basis as allowed by GAAP. We consider the implications of both external factors (e.g., market growth, pricing, competition, and technology) and internal factors (e.g., product costs, margins, support expenses, and capital investment) and their potential impact on cash flows in both the near and long term, as well as their impact on any identifiable intangible asset associated with the business. Based on recent business results, consideration of significant external and internal factors, and the resulting business projections, indefinite-lived intangible assets are reviewed to determine whether they are likely to remain indefinite-lived, or whether a finite life is more appropriate. In addition, based on events in the period and future expectations, management considers whether the potential for impairment exists. Finite lived intangibles are amortized over 5, 7, 10, 15, 23 or 30 years. We performed our annual assessment, in the second quarter of 2020, on a qualitative basis, and concluded that it was not more likely than not that the fair value of any indefinite-lived intangibles was less than its carrying amounts. In addition, we have not identified a triggering event through December 31, 2020 that more likely than not would result in impairment. Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition when compared with the fair value of the net assets acquired. The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. We test goodwill for impairment annually, during the second quarter, or any interim period when market or business events indicate there may be a potential adverse impact on goodwill. As permitted by GAAP, we may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test as required by GAAP. We performed our annual assessment in the second quarter of 2020, on a qualitative basis, and concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if it is determined that a qualitative assessment is not appropriate, we would perform a quantitative goodwill impairment test where we calculate the fair value of the reporting units. When applying a fair-value-based test, the fair value of a reporting unit is compared with its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, an impairment charge is recognized, however, the loss recognized is not to exceed the total amount of goodwill allocated to the reporting unit. The implied fair values of all three of our reporting units, more likely than not, exceed their carrying values at December 31, 2020. In addition, we have not identified a triggering event that would cause us to perform a quantitative goodwill impairment analysis. In management’s opinion, the goodwill balance for our ACCO Brands International reporting unit could be at risk for impairment if operating performance does not recover as expected from the current impacts of COVID-19, if we experience negative changes to the long-term outlook for the business, or changes in factors and assumptions which impact the fair value of our reporting units such as low or declining revenue growth rates, depressed operating margins or adverse changes to the discount rates impacting this report unit. Employee Benefit Plans We provide a range of benefits to our employees and retired employees, including pension, post-retirement, post-employment and health care benefits. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, including discount rates, assumed rates of return, mortality rate tables, compensation increases, turnover rates and health care cost trends. Actuarial assumptions are reviewed on an annual basis and modifications to these assumptions are made based on current rates and trends when it is deemed appropriate. As required by GAAP, the effect of our modifications and unrecognized actuarial gains and losses are generally recorded to a separate component of accumulated other comprehensive income (loss) ("AOCI") in stockholders’ equity and amortized over future periods. Income Taxes Deferred tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred tax assets to an amount that is more likely than not to be realized. Facts and circumstances may change and cause us to revise our conclusions regarding our ability to realize certain net operating losses and other deferred tax attributes. The amount of income taxes that we pay is subject to ongoing audits by federal, state and foreign tax authorities. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period any assessments are received, revised or resolved. With the enactment of the U.S. Tax Act, we believe that our offshore cash can be accessed without adverse U.S. tax consequences. After analyzing our global working capital and cash requirements, the Company has reassessed and updated its indefinite reinvestment assertion under ASC 740. As of December 31, 2020, the Company has recorded $4.6 million of deferred taxes on approximately $328 million of unremitted earnings of non-U.S. subsidiaries that may be remitted to the U.S. The Company has approximately $219 million of additional unremitted earnings of non-U.S. subsidiaries, which are indefinitely reinvested and for which no deferred taxes have been provided. 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 receive in exchange for those goods or services. Taxes we collect concurrent with revenue producing activities are excluded from revenue. Incidental items incurred that are immaterial in the context of the contract are expensed. 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. Products : For our products, we transfer control and recognize a sale primarily when we either ship the product from our manufacturing facility or distribution center, or upon delivery to a customer specified location depending upon the terms in the customer agreement. In addition, we recognize revenue for private label products as the product is manufactured (or over time) when a contract has an enforceable right to payment. For consignment arrangements, revenue is not recognized until the products are sold to the end customer. Customer Program Costs : Customer programs and incentives ("Customer Program Costs") are a common practice in our industry. We incur Customer Program Costs to obtain favorable product placement, to promote sell-through of products and to maintain competitive pricing. The amount of consideration we receive and revenue we recognize is impacted by Customer Program Costs, including sales rebates (which are generally tied to achievement of certain sales volume levels); in-store promotional allowances; shared media and customer catalog allowances; other cooperative advertising arrangements; freight allowance programs offered to our customers; allowances for discounts and reserves for returns. We recognize Customer Program Costs, primarily as a deduction to gross sales, at the time that the associated revenue is recognized. Customer Program Costs are based on management's best estimates using the most likely amount method and is an amount that is probable of not being reversed. In the absence of a signed contract, estimates are based on historical or projected experience for each program type or customer. We adjust our estimate of revenue when the most likely amount of consideration we expect to receive changes. Service or Extended Maintenance Agreements ("EMAs"): Depending on the terms of the EMA, we may defer recognition of the consideration received for any unsatisfied obligations. We use an observable price to determine the stand-alone selling price for separate performance obligations or an estimated cost plus margin approach, for our separately priced service/maintenance agreements that extend mechanical and maintenance coverage beyond our base warranty coverage to our Print Finishing Solutions customers. These agreements range in duration from three Shipping and Handling : 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 products are shipped. We reflect all amounts billed to customers for shipping and handling in net sales and the costs we incurred for shipping and handling (including costs to ship and move product from the seller’s place of business to the buyer’s place of business, as well as costs to store, move and prepare products for shipment) in cost of products sold. Reserve for Sales Returns: The reserve for sales returns represents estimated uncollectible receivables associated with the potential return of products previously sold to customers, and is recorded at the same time that the sales are recognized. The reserve includes a general provision for product returns based on historical trends. In addition, the reserve includes amounts for currently authorized customer returns that are considered to be abnormal in comparison to the historical trends. We record the returns reserve, on a gross basis, as a reduction to "Net sales" and "Cost of products sold" with increases to "Other current liabilities" and "Inventories." Cost of Products Sold Cost of products sold includes all manufacturing, product sourcing and distribution costs, including depreciation related to assets used in the manufacturing, procurement and distribution process, allocation of certain information technology costs supporting those processes, inbound and outbound freight, shipping and handling costs, purchasing costs associated with materials and packaging used in the production processes, and inventory valuation adjustments. Selling, General and Administrative Expenses Selling, general and administrative expenses ("SG&A") include advertising, marketing, and selling (including commissions) expenses, research and development, customer service, depreciation related to assets outside the manufacturing and distribution processes and all other general and administrative expenses outside the manufacturing and distribution functions (e.g., finance, human resources, information technology, legal and other corporate expenses). Advertising Expenses Advertising expenses were $99.0 million, $98.4 million and $105.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " above, and are principally expensed as incurred. Warranty Reserves We offer our customers various warranty terms based on the type of product that is sold. Estimated future obligations related to products sold under these warranty terms are provided by charges to cost of products sold in the same period in which the related revenue is recognized. Research and Development Expenses Research and development expenses were $19.7 million, $21.8 million and $23.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, are classified as SG&A expenses and are charged to expense as incurred. Stock-Based Compensation Our primary types of share-based compensation consist of stock options, restricted stock unit awards and performance stock unit awards. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Where awards are made with non-substantive vesting periods (for example, where a portion of the award vests due to retirement eligibility), we estimate and recognize expense based on the period from the grant date to the date on which the employee is retirement eligible. The Company accounts for forfeitures as they occur. Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period. The related translation adjustments are made directly to a separate component of AOCI in stockholders’ equity. Some transactions are made in currencies different from an entity’s functional currency; gains and losses on these foreign currency transactions are included in the income statement. Derivative Financial Instruments We recognize all derivatives as either assets or liabilities on the balance sheet and record those instruments at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI and are recognized in the Consolidated Statements of Income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Certain forecasted transactions, and assets and liabilities are exposed to foreign currency risk. 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. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2020. The Company does not expect a material impact on its consolidated financial statements from the adoption of this standard. 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. In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying current GAAP to contracts, hedging relationships, and other transactions affected by the transition from the use of LIBOR to an alternative reference rate. We are currently evaluating our contracts and hedging relationships that reference LIBOR and the potential effects of adopting this new guidance. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, an accounting standard that requires companies to utilize an impairment model (current expected credit loss, or "CECL") for most financial assets measured at amortized cost and certain other financial instruments, which include, but are not limited to, trade and other receivables. This accounting standard replaced the incurred loss model with a model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate those losses. Effective January 1, 2020, the Company adopted this standard. The adoption of this standard did not have a material impact on our consolidated financial statements. There were no other accounting standards that were adopted in 2020 that had a material effect on the Company’s financial condition, results of operations or cash flow. On January 1, 2019, the Company adopted accounting standard ASU No. 2016-02, Leases (Topic 842) The adoption of ASU 2016-02 did not materially affect our Consolidated Statements of Income, Consolidated Statements of Cash Flows or Consolidated Statement of Stockholders' Equity. See "Note 5. Leases" for further details and the required disclosures related to ASU 2016-02. On January 1, 2018, we adopted the accounting standard ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (Topic 606) and applied it to contracts which were not completed as of January 1, 2018 using the modified retrospective method. A completed contract is one where all (or substantially all) of the revenue was recognized in accordance with the revenue guidance that was in effect before the date of initial application of ASU 2014-09. We recognized the cumulative effect of $1.6 million, net of tax, upon adopting ASU 2014-09 as an addition to opening retained earnings as of January 1, 2018. See "Note 17. Revenue Recognition" for the required disclosures related to ASU 2014-09. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of PowerA Effective December 17, 2020, we completed the acquisition (the "PowerA Acquisition") of PowerA, a leading provider of third-party video gaming console accessories in North America. The results of PowerA are included in all three of the Company's operating business segments effective December 17, 2020. The preliminary purchase price was $340.0 million, plus an additional earnout of up to $55.0 million in cash, contingent upon PowerA achieving one- and two- year sales and profit growth objectives, which has a present value of $18.2 million as of December 31, 2020, and is subject to working capital and other adjustments. The PowerA Acquisition and related expenses were funded by cash on hand, as well as borrowings from our revolving credit facility. For accounting purposes, the Company was the acquiring enterprise. The PowerA Acquisition is being accounted for as a purchase business combination and PowerA's results are included in the Company’s consolidated financial statements as of December 31, 2020. The additional net sales from PowerA for the 15 days owned during the year ended December 31, 2020 were $7.9 million . 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 the PowerA Acquisition: (in millions) At December 17, 2020 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 340.0 Fair value of contingent consideration $ 18.2 Plus fair value of liabilities assumed: Accrued liabilities 9.5 Fair value of liabilities assumed $ 9.5 Less fair value of assets acquired: Inventory 28.7 Property and equipment 0.2 Identifiable intangibles 239.7 Other assets 13.5 Fair value of assets acquired $ 282.1 Goodwill $ 85.6 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 $85.6 million is primarily attributable to synergies expected to be realized from leveraging our geographic footprint 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, final determination 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 intangible assets and contingent consideration. In particular, the determination of the preliminary fair value of the customer relationships and vendor relationships intangible assets required us to make significant estimates and assumptions regarding (1) future revenue growth rates, (2) future cost of sales and operating expenses, (3) attrition rate, (4) future cash flows without vendor relationships, and (5) discount rates. Accordingly, there could be material adjustments to our consolidated financial statements, including changes in our amortization expense related to the valuation of intangible assets 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 consolidated financial statements. During 2020, transaction costs related to the PowerA Acquisition were $3.7 million. These costs were reported as SG&A expenses in the Company's Consolidated Statements of Income. Unaudited Pro Forma Consolidated Results The accounting literature establishes guidelines regarding, and requires the presentation of, the following unaudited pro forma information. Therefore, the unaudited pro forma information presented below is not intended to represent, nor do we believe it is indicative of, the consolidated results of operations of the Company that would have been reported had the PowerA Acquisition been completed on January 1, 2019. Furthermore, the unaudited pro forma information does not give effect to the anticipated synergies or other anticipated benefits of the PowerA Acquisition. Had the PowerA Acquisition occurred on January 1, 2019, unaudited pro forma consolidated results of the Company for the years ended December 31, 2020 and 2019 would have been as follows: (in millions) 2020 2019 Net sales $ 1,857.2 $ 2,124.0 Net income 76.9 120.0 Net income per common share (diluted) $ 0.80 $ 1.19 The pro forma amounts are based on the Company's historical results and the historical results for the acquired PowerA business, which have been translated at the average foreign exchange rates for the periods presented. The pro forma results of operations have been adjusted for amortization of finite-lived intangibles, and other charges related to the PowerA Acquisition accounting. 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 increased our share of the back-to-school market in Brazil. The results of Foroni are included in the ACCO Brands International segment effective August 1, 2019. The purchase price was R$157.2 million (US$41.5 million based on July 31, 2019 exchange rates) inclusive of working capital adjustments. We also assumed $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 consolidated financial statements as of August 1, 2019. The additional net sales from Foroni for the seven months ended July 31, 2020 was $16.7 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 the Foroni acquisition: (in millions) At August 1, 2019 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 41.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 13.9 Deferred tax liabilities 5.4 Debt 7.6 Lease liabilities 5.3 Other non-current liabilities 1.5 Fair value of liabilities assumed $ 33.7 Less fair value of assets acquired: Accounts receivable 17.5 Inventory 12.5 Property and equipment 8.8 Identifiable intangibles 11.1 Deferred tax assets 2.7 Right of use asset, leases 5.3 Other assets 3.6 Fair value of assets acquired $ 61.5 Goodwill $ 13.7 In the third quarter of 2020, we finalized our fair value estimate of assets acquired and liabilities assumed as of the acquisition date. The 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. 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 twelve months ended December 31, 2019, transaction costs related to the Cumberland Asset Acquisition were US$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 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 US$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 GOBA for the six-month period ended June 30, 2019 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 the GOBA 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 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. For the year ended December 31, 2018, transaction costs related to the GOBA Acquisition were US$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 | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 4.25 to 1.00 2.75% 1.75% 0.50% ≤ 4.25 to 1.00 and > 4.00 to 1.00 2.50% 1.50% 0.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% 0.38% ≤ 3.50 to 1.00 and > 3.25 to 1.00 2.00% 1.00% 0.38% ≤ 3.25 to 1.00 and > 3.00 to 1.00 1.75% 0.75% 0.30% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% 0.25% ≤ 2.00 to 1.00 1.25% 0.25% 0.20% As of December 31, 2020, the applicable rate on Euro, Australian and Canadian dollar loans was 2.50 percent and the applicable rate on Base Rate loans was 1.50 percent. Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.20 percent to 0.50 percent per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2020, the commitment fee rate was 0.50 percent. Dividends and Share Repurchases Under the Credit Agreement, as amended, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1 percent of the Company’s Consolidated Total Assets (as defined in the Credit Agreement, as amended); plus (ii) an additional amount not to exceed $75.0 million in any fiscal year (provided the Company’s consolidated leverage ratio after giving pro forma effect to the restricted payment would be greater than 3.25:1.00 and less than or equal to 3.75:1.00); plus (iii) an additional amount so long as the consolidated leverage ratio after giving pro forma effect to the restricted payment would be less than or equal to 3.25:1.00; plus (iv) any Net Equity Proceeds (as defined in the Credit Agreement). Effective through June 30, 2021, while the consolidated leverage ratio is >3.75:1.00, only dividends are permitted up to the greater of (i) $30 million or (ii) 1% of Consolidated Total Assets. Financial Covenants As of December 31, 2020, our Consolidated Leverage Ratio was approximately 4.30 to 1.00 versus our maximum covenant of 4.75 to 1.00. Our Interest Coverage Ratio was approximately 5.44 to 1.00 versus the minimum financial covenant of 3.00 to 1.00. Other Covenants and Restrictions The Credit Agreement, as amended, contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The Credit Agreement, as amended, also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the Credit Agreement, as amended) that the Company and its subsidiaries may make during the term of the Credit Agreement, as amended. Incremental Facilities The Credit Agreement, as amended, permits the Company to seek increases in the size of the Revolving Facility and the Term Loan Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the Credit Agreement, as amended. Senior Unsecured Notes due December 2024 (the "Senior Unsecured Notes") The Senior Unsecured Notes Indenture contains covenants that could limit the ability of the Company and its restricted subsidiaries to, among other things: (i) incur additional indebtedness or issue disqualified stock or, in the case of the Company’s restricted subsidiaries, preferred stock; (ii) create liens; (iii) pay dividends, make certain investments or make other restricted payments; (iv) sell certain assets or merge with or into other companies; (v) enter into transactions with affiliates; and (vi) allow any restricted subsidiary to pay dividends, loans, or assets to the Company or other restricted subsidiaries. These covenants are subject to a number of important limitations and exceptions. The Senior Unsecured Notes Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and accrued but unpaid interest on all the then outstanding Senior Unsecured Notes to be immediately due and payable. Compliance with Loan Covenants As of and for the periods ended December 31, 2020 and December 31, 2019, the Company was in compliance with all applicable loan covenants under its senior secured credit facilities and the Senior Unsecured Notes. Guarantees and Security Generally, obligations under the Credit Agreement , as amended, are guaranteed by certain of the Company's existing and future subsidiaries, and are secured by substantially all of the Company's and certain guarantor subsidiaries' assets, subject to certain exclusions and limitations. The Senior Unsecured Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our existing and future domestic subsidiaries other than certain excluded subsidiaries. The Senior Unsecured Notes and the related guarantees rank equally in right of payment with all of the existing and future senior debt of the Company and the guarantors, senior in right of payment to all of the existing and future subordinated debt of the Company and the guarantors, and effectively subordinated to all of the existing and future secured indebtedness of the Company and the guarantors to the extent of the value of the assets securing such indebtedness. The Senior Unsecured Notes and the guarantees are and will be structurally subordinated to all existing and future liabilities, including trade payables, of each of the Company's subsidiaries that do not guarantee the notes." id="sjs-B4">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 December 31, 2020 and 2019: (in millions) 2020 2019 Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.50% at December 31, 2020 and 1.50% at December 31, 2019) $ 287.4 $ 275.9 USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.44% at December 31, 2019) 92.5 97.5 Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.45% at December 31, 2019) 43.4 41.6 U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.26% at December 31, 2019) 307.2 8.2 Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.44% at December 31, 2019) 25.4 14.0 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 375.0 375.0 Other borrowings 5.7 3.8 Total debt 1,136.6 816.0 Less: Current portion 76.5 33.2 Debt issuance costs, unamortized 5.5 5.6 Long-term debt, net $ 1,054.6 $ 777.2 The Company entered into a Third Amended and Restated 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 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 the 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; • further increased 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 charge coverage ratio of 1.25:1.00 with a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00:1.00; and • reflect a more favorable restricted payment covenant, with the Consolidated Leverage Ratio (as defined in the Credit Agreement) hurdle for unlimited restricted payments (including share repurchases and dividends) as calculated under the Credit Agreement increasing from 2.50:1.00 to 3.25:1.00. The USD Term Loan, the Euro Term Loan and the Australian Term Loan are collectively referred to herein as the “Term Loan Facility.” On May 1, 2020, the Company entered into a Third Amendment (the "Third Amendment") to its Credit Agreement, among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto. Pursuant to the Third Amendment, the Credit Agreement was amended to, among other things: • increase the maximum Consolidated Leverage Ratio from 3.75:1.00 to 4.75:1.00, stepping back down to 3.75:1.00 for the first fiscal quarter ending after June 30, 2021; • amend the pricing based on the Company’s Consolidated Leverage Ratio, with a scaled increase in interest rates and fees, effective May 1, 2020; • reduce the Company’s capacity to incur certain other indebtedness, and impose additional limitations on certain restricted payments (other than dividends) and permitted acquisitions; and • require that the Company pay down any amounts on the Revolving Facility when cash and cash equivalents of the loan parties exceed $100.0 million. In connection with the PowerA Acquisition, effective November 10, 2020, the Company entered into a Fourth Amendment (the "Fourth Amendment") to its Credit Agreement, among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto. Pursuant to the Fourth Amendment, the Credit Agreement was amended to, among other things: • provide flexibility under the permitted acquisition provisions to accommodate the acquisition of PowerA; • further amended the maximum Consolidated Leverage Ratio financial covenant by 0.50:1.00 from current levels for each of the six fiscal quarters ending March 31, 2021 and ending June 30, 2022, as follows: Quarter Ended Maximum Consolidated Leverage Ratio March 2021 5.25:1.00 June 2021 5.25:1.00 September 2021 4.75:1.00 December 2021 4.25:1.00 March 2022 4.25:1.00 June 2022 4.25:1.00 September 2022 and thereafter 3.75:1.00 • exempt the borrowings made under the Credit Agreement, as amended, to fund the PowerA Acquisition from the Credit Agreement’s anti-cash hoarding clause. We incurred and capitalized approximately $3.2 million in bank, legal and other fees associated with the Third and Fourth Amendments. Under the Fourth Amendment, pricing is locked at LIBOR plus 2.50 percent from the date of the closing of the PowerA Acquisition until the Company publishes its financial results for the fiscal quarter ending March 31, 2021, and is subject to the existing leverage-based pricing grid thereafter. As of December 31, 2020, there was $332.6 million in borrowings outstanding under the Revolving Facility. The remaining amount available for borrowings was $256.8 million (allowing for $10.6 million of letters of credit outstanding on that date). Amortization The outstanding principal amounts under th e Term Loan Facility are payable in quarterly installments in an amount representing, on an annual basis, 1.25 percent of the initial aggregate principal amount of such loan facility and increasing to 2.50 percent in September 2023. Interest Rates Amounts outstanding under the Credit Agreement, as amended, bear interest at a rate per annum equal to the Euro Rate (with a zero percent floor for Euro borrowings and a 1.00 percent floor for USD borrowings), the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the Credit Agreement, as amended, plus an "applicable rate." The applicable rate applied to outstanding Euro, Australian and Canadian dollar denominated loans and Base Rate loans is based on the Company’s Consolidated Leverage Ratio as follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans Undrawn Fee > 4.25 to 1.00 2.75% 1.75% 0.50% ≤ 4.25 to 1.00 and > 4.00 to 1.00 2.50% 1.50% 0.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% 0.38% ≤ 3.50 to 1.00 and > 3.25 to 1.00 2.00% 1.00% 0.38% ≤ 3.25 to 1.00 and > 3.00 to 1.00 1.75% 0.75% 0.30% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% 0.25% ≤ 2.00 to 1.00 1.25% 0.25% 0.20% As of December 31, 2020, the applicable rate on Euro, Australian and Canadian dollar loans was 2.50 percent and the applicable rate on Base Rate loans was 1.50 percent. Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.20 percent to 0.50 percent per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2020, the commitment fee rate was 0.50 percent. Dividends and Share Repurchases Under the Credit Agreement, as amended, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1 percent of the Company’s Consolidated Total Assets (as defined in the Credit Agreement, as amended); plus (ii) an additional amount not to exceed $75.0 million in any fiscal year (provided the Company’s consolidated leverage ratio after giving pro forma effect to the restricted payment would be greater than 3.25:1.00 and less than or equal to 3.75:1.00); plus (iii) an additional amount so long as the consolidated leverage ratio after giving pro forma effect to the restricted payment would be less than or equal to 3.25:1.00; plus (iv) any Net Equity Proceeds (as defined in the Credit Agreement). Effective through June 30, 2021, while the consolidated leverage ratio is >3.75:1.00, only dividends are permitted up to the greater of (i) $30 million or (ii) 1% of Consolidated Total Assets. Financial Covenants As of December 31, 2020, our Consolidated Leverage Ratio was approximately 4.30 to 1.00 versus our maximum covenant of 4.75 to 1.00. Our Interest Coverage Ratio was approximately 5.44 to 1.00 versus the minimum financial covenant of 3.00 to 1.00. Other Covenants and Restrictions The Credit Agreement, as amended, contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The Credit Agreement, as amended, also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the Credit Agreement, as amended) that the Company and its subsidiaries may make during the term of the Credit Agreement, as amended. Incremental Facilities The Credit Agreement, as amended, permits the Company to seek increases in the size of the Revolving Facility and the Term Loan Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the Credit Agreement, as amended. Senior Unsecured Notes due December 2024 (the "Senior Unsecured Notes") The Senior Unsecured Notes Indenture contains covenants that could limit the ability of the Company and its restricted subsidiaries to, among other things: (i) incur additional indebtedness or issue disqualified stock or, in the case of the Company’s restricted subsidiaries, preferred stock; (ii) create liens; (iii) pay dividends, make certain investments or make other restricted payments; (iv) sell certain assets or merge with or into other companies; (v) enter into transactions with affiliates; and (vi) allow any restricted subsidiary to pay dividends, loans, or assets to the Company or other restricted subsidiaries. These covenants are subject to a number of important limitations and exceptions. The Senior Unsecured Notes Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and accrued but unpaid interest on all the then outstanding Senior Unsecured Notes to be immediately due and payable. Compliance with Loan Covenants As of and for the periods ended December 31, 2020 and December 31, 2019, the Company was in compliance with all applicable loan covenants under its senior secured credit facilities and the Senior Unsecured Notes. Guarantees and Security Generally, obligations under the Credit Agreement , as amended, are guaranteed by certain of the Company's existing and future subsidiaries, and are secured by substantially all of the Company's and certain guarantor subsidiaries' assets, subject to certain exclusions and limitations. The Senior Unsecured Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our existing and future domestic subsidiaries other than certain excluded subsidiaries. The Senior Unsecured Notes and the related guarantees rank equally in right of payment with all of the existing and future senior debt of the Company and the guarantors, senior in right of payment to all of the existing and future subordinated debt of the Company and the guarantors, and effectively subordinated to all of the existing and future secured indebtedness of the Company and the guarantors to the extent of the value of the assets securing such indebtedness. The Senior Unsecured Notes and the guarantees are and will be structurally subordinated to all existing and future liabilities, including trade payables, of each of the Company's subsidiaries that do not guarantee the notes. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases 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 Consolidated Balance Sheet. The Company currently has an immaterial amount of financing leases and leases with terms of more than one month and 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 incremental borrowing rate is dependent upon duration of the lease and has been segmented into three groups of time. All leases within the same region and the same group of time share the same incremental borrowing rate. The Company has lease agreements with lease and non-lease components, which are combined for accounting purposes for all classes of assets except information technology equipment. The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Operating lease cost $ 28.3 $ 29.6 Sublease income (1.2) (1.7) Total lease cost $ 27.1 $ 27.9 Total rental expense reported in our Consolidated Statements of Income for all non-cancelable operating leases (reduced by minor amounts for subleases) amounted to $33.0 million for the year ended December 31, 2018 . Other information related to leases for the years ended December 31, 2020 and 2019 was as follows: (in millions, except lease term and discount rate) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28.8 $ 29.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9.0 $ 35.5 Weighted average remaining lease term: Operating leases 6.4 years Weighted average discount rate: Operating leases 5.2 % Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of December 31, 2020 were as follows: (in millions) 2021 $ 28.6 2022 21.1 2023 16.3 2024 13.2 2025 9.8 Thereafter 32.0 Total minimum lease payments 121.0 Less imputed interest 21.9 Future minimum payments for leases, net of sublease rental income and imputed interest $ 99.1 |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Retiree Benefits | 6. Pension and Other Retiree Benefits We have a number of pension plans, principally in Germany, the U.K. and the U.S. The plans provide for payment of retirement benefits, primarily commencing between the ages of 60 and 65, and also for payment of certain disability and severance benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined based on an employee’s length of service and earnings. The majority of these plans have been frozen and are no longer accruing additional service benefits. Cash contributions to the plans are made as necessary to ensure legal funding requirements are satisfied. In the Esselte Acquisition, we acquired numerous pension plans, primarily in Germany (which is frozen to new participants) and the U.K. The Esselte U.K. plan is frozen and was merged into the legacy ACCO U.K. plan in 2019, which was frozen on September 30, 2012. On January 20, 2009, the Company’s Board of Directors approved plan amendments to temporarily freeze our ACCO Brands Corporation Pension Plan for Salaried and Certain Hourly Paid Employees in the U.S. (the "U.S. Salaried Plan") effective March 7, 2009. During the fourth quarter of 2014, the U.S. Salaried Plan became permanently frozen and, as of December 31, 2014, we permanently froze a portion of our U.S. pension plan for certain bargained hourly employees. As of December 31, 2016, all of our Canadian pension plans were frozen. We also provide post-retirement health care and life insurance benefits to certain employees and retirees in the U.S., U.K. and C anada. All but one of these benefit plans is no longer open to new participants. Many employees and retirees outside of the U.S. are covered by government health care programs. Our German Esselte Leitz Pension Plan had an unfunded liability of $167.9 million and $151.5 million for the years ended December 31, 2020 and 2019, respectively. For the ACCO Europe Pension Plan, the Company’s discount rate assumption methodology was based on the yield curve that uses a dataset of bonds with an average AA rating from main ratings agencies. Effective December 31, 2020, we changed our basis to estimate the discount rate assumption to the yield curve that uses a dataset of bonds rated AA by at least one of the main rating agencies, as we determined it better reflects the duration of the plan. The following table sets forth our defined benefit pension and post-retirement plans funded status and the amounts recognized in our Consolidated Balance Sheets: Pension Post-retirement U.S. International (in millions) 2020 2019 2020 2019 2020 2019 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 211.6 $ 188.3 $ 690.7 $ 627.3 $ 5.3 $ 6.2 Service cost 1.6 1.3 1.5 1.3 — — Interest cost 5.9 7.4 9.7 13.4 0.1 0.2 Actuarial loss (gain) 17.9 25.2 60.7 67.6 — (0.9) Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (10.9) (10.6) (27.6) (28.6) (0.5) (0.4) Settlement — — (27.4) (0.4) — — Foreign exchange rate changes — — 41.0 10.0 0.1 0.1 Projected benefit obligation at end of year 226.1 211.6 748.7 690.7 5.1 5.3 Change in plan assets Fair value of plan assets at beginning of year 158.0 141.1 460.3 417.6 — — Actual return on plan assets 18.6 21.9 45.0 45.5 — — Employer contributions 4.9 5.6 14.2 14.1 0.4 0.3 Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (10.9) (10.6) (27.6) (28.7) (0.5) (0.4) Settlement — — (27.4) (0.4) — — Foreign exchange rate changes — — 20.2 12.1 — — Fair value of plan assets at end of year 170.6 158.0 484.8 460.3 — — Funded status (Fair value of plan assets less PBO) $ (55.5) $ (53.6) $ (263.9) $ (230.4) $ (5.1) $ (5.3) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.6 $ 1.2 $ — $ — Other current liabilities — — 7.5 6.8 0.5 0.5 Pension and post-retirement benefit obligations 55.5 53.6 257.0 224.8 4.6 4.8 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 110.0 74.1 208.3 129.8 (4.4) (4.0) Unrecognized prior service cost (credit) 1.5 1.4 6.4 4.9 (0.1) (0.2) Pension and post-retirement benefit obligations of $317.1 million as of December 31, 2020, increased from $283.2 million as of December 31, 2019, primarily due to lower discount rate assumptions compared to the prior year. In addition, lower discount rates were the primary reason for the actuarial losses that were recognized in 2020. The accumulated benefit obligation for all pension plans was $962.6 million and $891.3 million at December 31, 2020 and 2019, respectively. The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets: U.S. International (in millions) 2020 2019 2020 2019 Accumulated benefit obligation $ 226.1 $ 211.6 $ 716.0 $ 638.4 Fair value of plan assets 170.6 158.0 463.7 417.5 The following table sets out information for pension plans with a projected benefit obligation in excess of plan assets: U.S. International (in millions) 2020 2019 2020 2019 Projected benefit obligation $ 226.1 $ 211.6 $ 728.3 $ 649.1 Fair value of plan assets 170.6 158.0 463.7 417.5 The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2020, 2019, and 2018, were as follows: Pension Post-retirement U.S. International (in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Service cost $ 1.6 $ 1.3 $ 1.6 $ 1.5 $ 1.3 $ 1.9 $ — $ — $ 0.1 Interest cost 5.9 7.4 6.7 9.7 13.4 12.9 0.1 0.2 0.2 Expected return on plan assets (11.4) (11.7) (11.8) (18.6) (20.5) (22.7) — — — Amortization of net loss (gain) 3.2 2.2 2.7 4.9 3.3 3.4 (0.5) (0.4) (0.4) Amortization of prior service cost (credit) 0.4 0.4 0.4 0.3 0.3 — — — (0.1) Curtailment gain — — — — — (0.6) — — — Settlement loss — — — 0.4 0.1 — — — — Net periodic benefit income (1) $ (0.3) $ (0.4) $ (0.4) $ (1.8) $ (2.1) $ (5.1) $ (0.4) $ (0.2) $ (0.2) (1) The components, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income. Other changes in plan assets and benefit obligations that were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International (in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Current year actuarial loss (gain) $ 10.6 $ 15.0 $ 12.0 $ 36.5 $ 43.3 $ 5.3 $ — $ (1.0) $ (0.3) Amortization of actuarial (loss) gain (3.2) (2.2) (2.7) (5.3) (3.3) (3.4) 0.5 0.4 0.4 Current year prior service cost — — — — — 6.5 — — — Amortization of prior service (cost) credit (0.4) (0.4) (0.4) (0.3) (0.3) 0.3 — — 0.1 Foreign exchange rate changes — — — 8.5 3.4 (7.1) — — 0.1 Total recognized in other comprehensive income (loss) $ 7.0 $ 12.4 $ 8.9 $ 39.4 $ 43.1 $ 1.6 $ 0.5 $ (0.6) $ 0.3 Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ 6.7 $ 12.0 $ 8.5 $ 37.6 $ 41.0 $ (3.5) $ 0.1 $ (0.8) $ 0.1 Assumptions The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 2.6 % 3.3 % 4.6 % 1.2 % 1.8 % 2.5 % 1.9 % 2.7 % 3.7 % Rate of compensation increase N/A N/A N/A 2.9 % 2.9 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 3.2 % 4.0 % 3.5 % 1.6 % 2.4 % 2.1 % 2.7 % 3.6 % 3.2 % Expected long-term rate of return 7.0 % 7.4 % 7.4 % 4.2 % 5.0 % 5.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 2.9 % 3.0 % 2.8 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit (income) expense as of December 31, 2020, 2019, and 2018 were as follows: Post-retirement 2020 2019 2018 Health care cost trend rate assumed for next year 6 % 7 % 7 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4 % 4 % 5 % Year that the rate reaches the ultimate trend rate 2028 2027 2026 Plan Assets The investment strategy for the Company is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Each plan has a different target asset allocation, which is reviewed periodically and is based on the underlying liability structure. The target asset allocation for our U.S. plan is 64 percent in equity securities, 29 percent in fixed income securities and 7 percent in alternative assets. The target asset allocation for non-U.S. plans is set by the local plan trustees. Our pension plan weighted average asset allocations as of December 31, 2020 and 2019 were as follows: 2020 2019 U.S. International U.S. International Asset category Equity securities 64 % 21 % 56 % 13 % Fixed income 29 54 33 46 Real estate 6 4 3 3 Other (2) 1 21 8 38 Total 100 % 100 % 100 % 100 % (2) Multi-strategy hedge funds, insurance contracts and cash and cash equivalents for certain of our plans. U.S. Pension Plan Assets The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2020 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Mutual funds $ 94.8 $ — $ — $ 94.8 Exchange traded funds 74.6 — — 74.6 Common collective trust funds — 1.2 — 1.2 Total $ 169.4 $ 1.2 $ — $ 170.6 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2019 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Mutual funds $ 103.2 $ — $ — $ 103.2 Exchange traded funds 48.4 — — 48.4 Common collective trust funds — 1.5 — 1.5 Investments measured at net asset value (3) Multi-strategy hedge funds 4.9 Total $ 151.6 $ 1.5 $ — $ 158.0 (3) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the table that presents our defined benefit pension and post-retirement plans funded status. Mutual funds and exchange traded funds: The fair values of mutual fund and common stock fund investments are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs). Common collective trusts : The fair values of participation units held in common collective trusts are based on their net asset values, as reported by the managers of the common collective trusts and as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date (level 2 inputs). International Pension Plans Assets The fair value measurements of our international pension plans assets by asset category as of December 31, 2020 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 8.5 $ — $ — $ 8.5 Equity securities 99.9 — — 99.9 Exchange traded funds 0.5 — — 0.5 Corporate debt securities — 85.6 — 85.6 Multi-strategy hedge funds — 57.8 — 57.8 Insurance contracts — 4.1 — 4.1 Real estate — 9.7 — 9.7 Government debt securities — 180.9 — 180.9 Investments measured at net asset value (3) Multi-strategy hedge funds 29.8 Real estate 8.0 Total $ 108.9 $ 338.1 $ — $ 484.8 The fair value measurements of our international pension plans assets by asset category as of December 31, 2019 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 1.4 $ — $ — $ 1.4 Equity securities 59.9 — — 59.9 Exchange traded funds 0.4 — — 0.4 Corporate debt securities — 79.3 — 79.3 Multi-strategy hedge funds — 85.9 — 85.9 Insurance contracts — 29.6 — 29.6 Real estate — 3.9 — 3.9 Government debt securities — 132.5 — 132.5 Investments measured at net asset value (3) Multi-strategy hedge funds 57.0 Real estate 10.4 Total $ 61.7 $ 331.2 $ — $ 460.3 Equity securities and exchange traded funds: The fair values of equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs). Debt securities: Fixed income securities, such as corporate and government bonds and other debt securities, consist of index-linked securities. These debt securities are valued using quotes from independent pricing vendors based on recent trading activity and other relevant information, including market interest rate curves, referenced credit spreads, and estimated prepayment rates, where applicable (level 2 inputs). Insurance contracts: Valued at contributions made, plus earnings, less participant withdrawals and administrative expenses, which approximate fair value (level 2 inputs). Multi-strategy hedge funds : The fair values of participation units held in multi-strategy hedge funds are based on their net asset values, as reported by the managers of the funds and are based on the daily closing prices of the underlying investments (level 2 inputs). Real estate: Real estate consists of managed real estate investment trust securities (level 2 inputs). Cash Contributions We contributed $19.5 million to our pension and post-retirement plans in 2020 and expect to contribute approximately $25 million in 2021. The following table presents estimated future benefit payments to participants for the next ten fiscal years: Pension Post-retirement (in millions) Benefits Benefits 2021 $ 41.4 $ 0.5 2022 41.8 0.4 2023 42.4 0.4 2024 42.8 0.4 2025 43.8 0.4 Years 2026 - 2030 223.5 1.7 We also sponsor a number of defined contribution plans. Contributions are determined under various formulas. Costs related to such plans amounted to $6.8 million, $12.4 million and $13.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. Multi-Employer Pension Plan We are a participant in a multi-employer pension plan. The plan has reported significant underfunded liabilities and declared itself in critical and declining status (red). As a result, the trustees of the plan adopted a rehabilitation plan ("RP") in an effort to forestall insolvency. Our required contributions to this plan could increase due to the shrinking contribution base resulting from the insolvency of or withdrawal of other participating employers, from the inability or the failure of withdrawing participating employers to pay their withdrawal liability, from lower than expected returns on pension fund assets, and from other funding deficiencies. In the event that we withdraw from participation in the plan, we will be required to make withdrawal liability payments for a period of 20 years or longer in certain circumstances. The present value of our withdrawal liability payments would be recorded as an expense in our Consolidated Statements of Income and as a liability on our Consolidated Balance Sheets in the first year of our withdrawal. The most recent Pension Protection Act ("PPA") zone status available in 2020 and 2019 is for the plan’s years ended December 31, 2019, and 2018, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The Company's contributions are not more than 5 percent of the total contributions to the plan. Details regarding the plan are outlined in the table below. Pension Protection Act Zone Status FIP/RP Status Pending/Implemented Contributions Expiration Date of Collective-Bargaining Agreement Year Ended December 31, Pension Fund EIN/Pension Plan Number 2020 2019 2020 2019 2018 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.1 $ 0.2 $ 0.3 Yes 6/30/2023 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation The ACCO Brands Corporation Incentive Plan (the "Plan") provides for stock based awards generally in the form of stock options, restricted stock units ("RSUs") and performance stock units ("PSUs"), any of which may be granted alone or with other types of awards and dividend equivalents. A total of up to 11,775,000 shares may be issued under awards to key employees and non-employee directors under the Plan. Beginning in 2018, the Company initiated a cash dividend to stockholders and began accruing dividend equivalents (“DEs") on all outstanding RSUs and PSUs as permitted by the Plan. DEs entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock. RSUs and PSUs are credited with DEs that are converted to RSUs and PSUs at the fair market value of our common stock on the dates the dividend payments are made and are subject to the same terms and conditions as the underlying award. DEs credited to RSUs and PSUs will only be paid to the extent the awards vest and any performance goals are achieved. We will satisfy the requirement for delivering shares of our common stock for our Plan by issuing new shares. The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Selling, general and administrative expense $ 6.5 $ 10.1 $ 8.8 Loss before income tax (6.5) (10.1) (8.8) Income tax benefit (1.6) (2.4) (2.2) Net loss $ (4.9) $ (7.7) $ (6.6) There was no capitalization of stock-based compensation expense. Stock-based compensation expense by award type for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Stock option compensation expense $ 2.7 $ 2.7 $ 2.0 RSU compensation expense 5.2 5.1 4.7 PSU compensation expense (1.4) 2.3 2.1 Total stock-based compensation expense $ 6.5 $ 10.1 $ 8.8 Stock Options The exercise price of each stock option equals or exceeds the fair market price of our stock on the date of grant. Options granted prior to 2020 can generally be exercised over a maximum term of up to seven years and starting in 2020 options can generally be exercised over a maximum term of up to ten years. Stock options outstanding as of December 31, 2020, generally vest ratably over three years from the grant date. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model and the weighted average assumptions as outlined in the following table: Year Ended December 31, 2020 2019 2018 Weighted average expected lives 6.0 years 4.6 years 4.8 years Weighted average risk-free interest rate 0.81 % 2.49 % 2.62 % Weighted average expected volatility 36.0 % 36.1 % 36.4 % Expected dividend yield 3.16 % 2.65 % 1.87 % Weighted average grant date fair value $ 2.03 $ 2.40 $ 3.76 Volatility is calculated using ACCO Brands' historic volatility. The weighted average expected option term reflects the application of the simplified method, which defines the life as the average of the contractual term of the option and the weighted average vesting period for options granted in 2020. The weighted average expected option term reflects ACCO Brands' historic life for all options granted prior to 2020. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of the changes in stock options outstanding under the Plan during the year ended December 31, 2020 is presented below: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 4,417,693 $ 9.32 Granted 1,437,188 $ 8.25 Exercised (683,718) $ 6.49 Forfeited (208,278) $ 9.43 Outstanding at December 31, 2020 4,962,885 $ 9.40 5.0 years $ 1.7 million Exercisable shares at December 31, 2020 2,564,242 $ 9.84 2.7 years $ 1.4 million We received cash of $4.4 million, $4.2 million and $6.8 million from the exercise of stock options during the years ended December 31, 2020, 2019 and 2018, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2020, 2019 and 2018 totaled $1.6 million, $1.0 million and $4.1 million, respectively. The fair value of options vested during the years ended December 31, 2020, 2019 and 2018 was $2.7 million, $1.9 million and $2.3 million, respectively. As of December 31, 2020, we had unrecognized compensation expense related to stock options of $3.3 million, which will be recognized over a weighted-average period of 1.7 years. Stock Unit Awards RSUs vest over a pre-determined period of time, generally three three There were 2,050,085 RSUs outstanding as of December 31, 2020. All outstanding RSUs as of December 31, 2020 vest within three years of their date of grant. We generally recognize compensation expense for our RSU awards ratably over the service period. Upon vesting, all of the RSU awards will be converted into the right to receive one share of common stock of the Company for each unit that vests. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is generally recognized over the period during which the employee provides the requisite service to the Company. A summary of the changes in the RSUs outstanding under the Plan during 2020 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,716,445 $ 10.53 Granted 724,319 $ 7.92 Vested and distributed (323,818) $ 12.49 Forfeited and cancelled (66,861) $ 10.20 Outstanding at December 31, 2020 2,050,085 $ 9.31 Vested and deferred at December 31, 2020 (1) 613,853 $ 8.82 (1) Included in outstanding at December 31, 2020. Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. For the years ended December 31, 2019 and 2018, we granted 679,601 and 465,378 RSUs, respectively. The weighted-average grant date fair value of our RSUs was $7.92, $8.74, and $12.71 for the years ended December 31, 2020, 2019 and 2018, respectively. The fair value of RSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $4.7 million, $3.6 million and $4.7 million, respectively. As of December 31, 2020, we have unrecognized compensation expense related to RSUs of $5.7 million, which will be recognized over a weighted-average period of 1.8 years. A summary of the changes in the PSUs outstanding under the Plan during 2020 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,021,543 $ 9.98 Granted 939,529 $ 8.25 Vested (377,073) $ 12.75 Forfeited and cancelled (67,145) $ 8.56 Other - decrease due to performance of PSUs (1,516,854) $ 8.28 Outstanding at December 31, 2020 — $ — For the years ended December 31, 2019 and 2018, we granted 895,389 and 747,996 PSUs, respectively. For the years ended December 31, 2020, 2019 and 2018, 377,073, 1,059,825 and 1,327,613 PSUs vested, respectively. The weighted-average grant date fair value of our PSUs was $8.25, $8.35, and $12.82 for the years ended December 31, 2020, 2019 and 2018, respectively. The fair value of PSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $4.8 million, $8.1 million and $10.0 million respectively. Based on the level of achievement of the performance targets associated with the |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories The components of inventories were as follows: December 31, (in millions) 2020 2019 Raw materials $ 36.8 $ 44.4 Work in process 3.5 3.5 Finished goods 264.8 235.4 Total inventories $ 305.1 $ 283.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 9. Property, Plant and Equipment, Net The components of net property, plant and equipment were as follows: December 31, (in millions) 2020 2019 Land and improvements $ 23.2 $ 24.0 Buildings and improvements to leaseholds 145.9 145.0 Machinery and equipment 480.4 475.1 Construction in progress 8.3 7.6 657.8 651.7 Less: accumulated depreciation (416.4) (384.6) Property, plant and equipment, net (1) $ 241.4 $ 267.1 (1) Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 10. Goodwill and Identifiable Intangible Assets Goodwill We test goodwill for impairment at least annually, during the second quarter, and on an interim basis if an event or circumstance indicates that there is a triggering event that would make it more likely than not that an impairment loss had been incurred. During the second quarter ended June 30, 2020, we performed a qualitative assessment of impairment for goodwill for each of our three reporting units. We considered events and circumstances that may affect the fair value of each reporting unit to determine whether it is necessary to perform the quantitative impairment test. We focused on events or circumstances that could affect the significant inputs, including, but not limited to, financial performance, such as negative or declining cash flows, a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, competitive, economic, industry and market considerations, and other factors that have or could impact each of our reporting units. If we determine that it is more likely than not that the goodwill is impaired, then we would perform a quantitative impairment test. The results of our qualitative assessment performed during the second quarter ended June 30, 2020, was that there were no triggering events that would make it more likely than not that an impairment loss to our goodwill has been incurred for any of our three reporting units. 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 (1) — — 10.1 10.1 Foreign currency translation — 0.1 (0.5) (0.4) Balance at December 31, 2019 375.6 165.7 177.3 718.6 Acquisitions (1) 85.6 — 3.9 89.5 Foreign currency translation — 22.5 (3.2) 19.3 Balance at December 31, 2020 $ 461.2 $ 188.2 $ 178.0 $ 827.4 (1) Goodwill has been recorded on our Consolidated Balance Sheet related to the PowerA Acquisition and represents the excess of the cost of the PowerA Acquisition when compared to the fair value estimate of the net assets acquired on December 17, 2020 (the date of the PowerA Acquisition). Goodwill has been recorded on our Consolidated Balance Sheet related to the Foroni Acquisition and represents the excess of the cost of the Foroni Acquisition when compared to the fair value estimate of the net assets acquired on August 1, 2019 (the effective date of the Foroni Acquisition). Goodwill has been recorded on our Consolidated Balance Sheet related to the GOBA Acquisition and represents the excess of the cost of the GOBA Acquisition when compared to the fair value estimate of the net assets acquired on July 2, 2018 (the date of the GOBA Acquisition). See "Note 3. Acquisitions" for details on the calculation of the goodwill acquired in the acquisitions. The goodwill balance includes $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. 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 2020 and concluded that no impairment existed. A considerable amount of management judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of each reporting unit and the indefinite lived intangible assets. While we believe our judgments and assumptions are reasonable, different assumptions could change the estimated fair values and, therefore, impairment charges could be required. Significant negative industry or economic trends, disruptions to our business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in the use of the assets or in entity structure, and divestitures may adversely impact the assumptions used in the valuations and ultimately result in future impairment charges. Identifiable Intangibles We test indefinite-lived intangibles for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, as allowed by GAAP, for our indefinite-lived trade names as of the second quarter of 2020 and concluded that no impairment existe d. Acquired Identifiable Intangibles PowerA Acquisition The preliminary valuation of identifiable intangible assets of $239.7 million acquired in the PowerA Acquisition includes amortizable customer relationships, vendor relationships, trade names and developed technology, which have been recorded at their estimated fair values. 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 fair value of the vendor relationships was determined using the lost income method. The fair value of the trade name and the developed technology was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The determination of the acquisition date fair value of the intangible assets required the Company to make significant estimates and assumptions regarding future revenue growth rates, future cost of sales, operating expenses and earnings before income tax, attrition rate, future cash flows without vendor relationships and discount rates. The amortizable trade name, customer and vendor relationships will be amortized over 15 years while the developed technology will be amortized over 5 years on a straight-line basis. The allocation of the identifiable intangibles acquired in the PowerA Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name $ 21.6 15 years Customer relationships 127.6 15 years Vendor relationships 87.7 15 years Developed technology 2.8 5 years Total identifiable intangibles acquired $ 239.7 Foroni Acquisition The valuation of identifiable intangible assets of $11.1 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 being 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 include 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 being amortized over 15 years on a straight-line basis, while the customer relationships are being amortized on an accelerated basis over 10 years, from July 2, 2018, the date GOBA was acquired by the Company. The allocations of the identifiable intangibles acquired in the GOBA Acquisition were 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 gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2020 and 2019 were as follows: December 31, 2020 December 31, 2019 (in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 467.5 $ (44.5) (1) $ 423.0 $ 467.3 $ (44.5) (1) $ 422.8 Amortizable intangible assets: Trade names 343.5 (97.7) 245.8 316.7 (83.7) 233.0 Customer and contractual relationships 376.8 (162.9) 213.9 241.0 (142.3) 98.7 Vendor relationships 87.7 (0.2) 87.5 — — — Patents 8.9 (2.1) 6.8 5.5 (1.4) 4.1 Subtotal 816.9 (262.9) 554.0 563.2 (227.4) 335.8 Total identifiable intangibles $ 1,284.4 $ (307.4) $ 977.0 $ 1,030.5 $ (271.9) $ 758.6 (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 $32.8 million, $35.4 million and $36.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions) 2021 2022 2023 2024 2025 Estimated amortization expense (2) $ 46.3 $ 42.6 $ 40.2 $ 38.5 $ 36.8 (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. COVID-19 Impact We continue to monitor the significant global impact and uncertainty as a result of COVID-19 to assess the outlook for demand for our products and the effect on our business and our overall financial performance. This includes our risk of impairment of our goodwill and indefinite-lived intangible assets. Although the full impact of COVID-19 on demand remains uncertain, with impact varying significantly by geographic region, we remain committed to taking the actions necessary to protect our long-term financial performance expectations and position the Company for long-term growth. We expect the macroeconomic environment will recover in the medium to long-term. As a result of our analysis, and consideration of events and circumstances, we concluded based on the previously conducted annual assessment, on a qualitative basis, no impairment of our goodwill or indefinite-lived intangible assets was triggered as of June 30, 2020. The implied fair values of all three of our reporting units, more likely than not, exceed their carrying values at December 31, 2020. In addition, we have not identified a triggering event that would cause us to perform a quantitative goodwill impairment analysis. In management’s opinion, the goodwill balance for our ACCO Brands International reporting unit could be at risk for impairment if operating performance does not recover as expected from the current impacts of COVID-19, if we experience negative changes to the long-term outlook for the business, or if changes in factors and assumptions occur which impact the fair value of our reporting units such as low or declining revenue growth rates, depressed operating margins or adverse changes to the discount rates impacting this reporting unit. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 11. Restructuring The Company recorded $10.9 million, $12.0 million and $11.7 million of restructuring charges for the years ended December 31, 2020, 2019 and 2018, respectively. Restructuring charges in 2020 were primarily related to severance costs in North America. Additional severance charges were also taken in Mexico, Brazil, EMEA and Australia. In 2019, we recorded $5.6 million of restructuring expense for our North America segment, $2.3 million for our EMEA segment, and $2.7 million for our International segment, primarily for severance expenses associated with several cost savings initiatives. In addition, we recorded $1.4 million of restructuring expense for Corporate. During 2018, the Company initiated cost savings plans related to changes in the operating structure of its North America segment and included costs associated with the integration of Esselte within the EMEA segment. The summary of the activity in the restructuring liability for the year ended December 31, 2020 was as follows: (in millions) Balance at December 31, 2019 Provision Cash Non-cash Balance at December 31, 2020 Employee termination costs (1) $ 10.7 $ 8.5 $ (11.1) $ — $ 8.1 Termination of lease agreements (2) 0.6 1.5 (0.7) (0.4) 1.0 Other (3) 0.5 0.9 (0.5) (0.7) 0.2 Total restructuring liability $ 11.8 $ 10.9 $ (12.3) $ (1.1) $ 9.3 (1) We expect the remaining $8.1 million employee termination costs to be substantially paid within the next twelve months. (2) We expect the remaining $1.0 million termination of lease costs to be substantially paid within the next twelve months. (3) We expect the remaining $0.2 million of other costs to be substantially paid in the next twelve months. The summary of the activity in the restructuring accounts for the year ended December 31, 2019 was as follows: (in millions) Balance at December 31, 2018 Provision Cash Non-cash Balance at December 31, 2019 Employee termination costs $ 7.9 $ 10.9 $ (8.1) $ — $ 10.7 Termination of lease agreements 1.8 0.5 (1.7) — 0.6 Other — 0.6 (0.1) — 0.5 Total restructuring liability $ 9.7 $ 12.0 $ (9.9) $ — $ 11.8 The summary of the activity in the restructuring accounts for the year ended December 31, 2018 was as follows: (in millions) Balance at December 31, 2017 Provision Cash Non-cash Balance at December 31, 2018 Employee termination costs $ 12.0 $ 8.3 $ (12.1) $ (0.3) $ 7.9 Termination of lease agreements 0.8 3.2 (2.0) (0.2) $ 1.8 Other 0.5 0.2 (0.6) (0.1) $ — Total restructuring liability $ 13.3 $ 11.7 $ (14.7) $ (0.6) $ 9.7 Restructuring charges for the years ended December 31, 2020, 2019 and 2018 by reporting segment were as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 7.6 $ 5.6 $ 6.2 ACCO Brands EMEA 0.6 2.3 4.9 ACCO Brands International 2.6 2.7 0.6 Corporate 0.1 1.4 — Total restructuring charges $ 10.9 $ 12.0 $ 11.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of income before income tax for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Domestic operations $ 1.7 $ 32.0 $ 37.0 Foreign operations 76.9 131.5 120.9 Total $ 78.6 $ 163.5 $ 157.9 The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 21 percent to our effective income tax rate for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Income tax at U.S. statutory rate; 21% $ 16.5 $ 34.3 $ 33.2 Effect of the U.S. Tax Act — — 3.1 Impact on final GILTI regulations for 2018 and 2019 (2.7) — — Statutory tax rate changes (2.0) — 3.9 State, local and other tax, net of federal benefit 0.1 5.8 2.2 Impact from foreign inclusions 1.3 3.1 3.7 U.S. effect of foreign dividends and withholding taxes 1.0 2.1 2.2 Foreign income taxed at a higher effective rate 1.4 4.2 0.9 Net Brazilian Tax Assessments impact 1.5 6.5 (4.4) Increase in valuation allowance 2.2 0.4 5.2 Excess expense (benefit) from stock-based compensation 0.9 0.2 (2.5) Other (3.6) 0.1 3.7 Income taxes as reported $ 16.6 $ 56.7 $ 51.2 Effective tax rate 21.1 % 34.7 % 32.4 % For 2020, we recorded income tax expense of $16.6 million on income before taxes of $78.6 million, for an effective rate of 21.1 percent. The decrease in the effective rate versus 2019 was primarily due to an increase in reserves for uncertain tax positions in the prior year, the election to exclude high-taxed intangible income from the global intangible low-taxed income ("GILTI") computation, and beneficial adjustments to deferred taxes resulting from statutory tax rate changes. For 2019, we recorded income tax expense of $56.7 million on income before taxes of $163.5 million, for an effective rate of 34.7 percent. The increase in the effective rate versus 2018 was primarily due to the increase to the reserve for the unrecognized tax benefits of $5.6 million in connection with the Brazil Tax Assessments. For 2018, we recorded income tax expense of $51.2 million on income before taxes of $157.9 million, for an effective rate of 32.4 percent. Final Section 951A Tax Regulations On July 20, 2020, the U.S. Department of the Treasury and the Internal Revenue Service issued final section 951A regulations ("Final Regulations") on an election to exclude high-tax global intangible income from a U.S. shareholder's gross income for purposes of computing the GILTI tax. After assessing the impact of these regulations on the 2018 and 2019 tax years, the Company has decided to make the election to exclude high-tax global intangible income for both years and will file amended returns with benefits of $1.1 million and $1.4 million, respectively. The Company also intends to make the election for 2020 with a comparable benefit to the prior years. Tax Reform On December 22, 2017, the U.S. Tax Act was signed into law. The U.S. Tax Act made broad and complex changes to the U.S. tax code, including, but not limited to: (i) reducing the future U.S. federal corporate tax rate from 35 percent to 21 percent; (ii) requiring companies to pay a one-time transition tax on certain undistributed earnings of foreign subsidiaries (the "Transition Toll Tax"); (iii) bonus depreciation that will allow for full expensing of qualified property; (iv) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (v) a new provision designed to tax GILTI; (vi) the repeal of domestic production activity deductions; (vii) limitations on the deductibility of certain executive compensation expenses; (viii) limitations on the use of foreign tax credits to reduce U.S. income tax liability; and (ix) a new provision that allows a domestic corporation an immediate deduction for a portion of its foreign derived intangible income. The Company was able to make reasonable estimates of the effects and recorded provisional estimates for these items. Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, during the year ended December 31, 2017, we recorded a net tax benefit totaling $25.7 million related to our provisional estimate of the impact of the U.S. Tax Act. The benefit consisted of an expense of $24.0 million, net of foreign tax credit carryforwards of $14.0 million, for the one-time Transition Toll Tax and a net benefit of $49.7 million in connection with the revaluation of the deferred tax assets and liabilities resulting from the decrease in the U.S. corporate tax rate. As of December 31, 2018, the Company has revised these estimated amounts and recognized additional net tax expense in the amount of $3.1 million. The Company recognized additional expenses of $0.3 million related to the Transition Toll Tax. The Company recognized additional expense of $3.3 million related to limitations on deductibility of executive compensation expenses including $1.5 million of unrecognized tax benefits and a $1.8 million impairment of deferred tax assets. The Company recognized a tax benefit of $0.5 million on the difference between the 2018 U.S. enacted rate of 21 percent and the 2017 enacted rate of 35 percent, primarily related to a $4.1 million deductible pension plan contribution included on the Company’s 2017 U.S. Corporation income tax return. The components of the income tax expense for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Current expense Federal and other $ (0.1) $ 5.8 $ 2.7 Foreign 24.3 42.2 25.8 Total current income tax expense 24.2 48.0 28.5 Deferred expense Federal and other (2.0) 8.4 11.1 Foreign (5.6) 0.3 11.6 Total deferred income tax expense (7.6) 8.7 22.7 Total income tax expense $ 16.6 $ 56.7 $ 51.2 The components of deferred tax assets (liabilities) as of December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Deferred tax assets Compensation and benefits $ 13.3 $ 15.4 Pension 60.1 52.7 Inventory 10.2 10.0 Other reserves 18.1 15.9 Accounts receivable 7.5 5.8 Foreign tax credit carryforwards 23.3 25.2 Net operating loss carryforwards 103.1 90.9 Interest expense carryforwards 9.3 6.2 Other 5.7 4.4 Gross deferred income tax assets 250.6 226.5 Valuation allowance (55.4) (51.6) Net deferred tax assets 195.2 174.9 Deferred tax liabilities Depreciation (19.0) (18.0) Unremitted non-U.S. earnings accrual (4.6) (2.0) Identifiable intangibles (199.9) (209.1) Other (5.8) (4.3) Gross deferred tax liabilities (229.3) (233.4) Net deferred tax liabilities $ (34.1) $ (58.5) A valuation allowance of $55.4 million and $51.6 million as of December 31, 2020 and 2019, respectively, has been established for deferred income tax assets, primarily related to net operating loss (the "NOL") carryforwards that may not be realized. Realization of the net deferred income tax assets is dependent upon generating sufficient taxable income prior to the expiration of the applicable carryforward periods. Although realization is not certain, management believes that it is more likely than not that the net deferred income tax assets will be realized. However, the amount of net deferred tax assets considered realizable could change in the near term if estimates of future taxable income during the applicable carryforward periods fluctuate. As of December 31, 2020, the Company has state NOL tax benefits of $14.9 million which will expire between December 31, 2022 and December 31, 2032. As of December 31, 2020, the Company has $2.1 million of federal general business credit carryforwards which will start to expire on December 31, 2038. As of December 31, 2020, the Company has $23.3 million of foreign tax credit carryforwards which will expire on December 31, 2027. As of December 31, 2020, the Company has foreign NOLs of $430 million and tax benefits of $88.1 million, most of which have unlimited carryforward periods. With the enactment of the U.S. Tax Act, we believe that our offshore cash can be accessed without adverse U.S. tax consequences. After analyzing our global working capital and cash requirements, the Company has reassessed and updated its indefinite reinvestment assertion under ASC 740. As of December 31, 2020, the Company has recorded $4.6 million of deferred taxes on approximately $328 million of unremitted earnings of non-U.S. subsidiaries that may be remitted to the U.S. The Company has approximately $219 million of additional unremitted earnings of non-U.S. subsidiaries, which are indefinitely reinvested and for which no deferred taxes have been provided. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 50.5 $ 43.7 $ 47.2 Additions for tax positions of prior years 2.9 8.4 3.1 Additions for tax positions of current year — 1.5 1.5 Reductions for tax positions of prior years (1.1) (2.5) (8.2) Acquisitions 1.4 — 5.3 Decrease resulting from foreign currency translation (8.6) (0.6) (5.2) Balance at end of year $ 45.1 $ 50.5 $ 43.7 As of December 31, 2020, the amount of unrecognized tax benefits decreased to $45.1 million, all of which would impact our effective tax rate, if recognized. We expect the amount of unrecognized tax benefits to change within the next twelve months including releases of previously recorded reserves of approximately $3.0 to $4.0 million. Interest and penalties related to unrecognized tax benefits are recognized within "Income tax expense" in the Consolidated Statements of Income. As of December 31, 2020, we have accrued a cumulative $26.5 million for interest and penalties on the unrecognized tax benefits. As of December 31, 2020, the U.S. federal statute of limitations remains open for the year 2017 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 5 years. As of December 31, 2020, years still open to examination by foreign tax authorities in major jurisdictions include Australia (2015 forward), Brazil (2016 forward), Canada (2016 forward), Germany (2015 forward), Sweden (2015 forward) and the U.K. (2019 forward). We are currently under examination in various foreign jurisdictions. 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 Brazil Tax Assessments. The final administrative appeal of the Second Assessment was decided against the Company in 2017. In 2018, we decided to appeal this decision to the judicial level. In the event we do not prevail at the judicial level, we will be required to pay an additional penalty 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. In connection with the judicial challenge, we were required to provide security to guarantee payment of the Second Assessment should we not prevail. In the third quarter of 2020, the final administrative appeal of the First Assessment was decided against the Company. We have decided to appeal this decision to the judicial level. We recorded an additional expense in the third quarter of $1.2 million representing additional attorneys' costs and fees, which we will be required to pay if we do not prevail at the judicial level. We believe we have meritorious defenses and intend to vigorously contest both of the Brazil Tax 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 this dispute to be uncertain. Since it is not more likely than not that we will prevail, in 2012, we recorded a reserve in the amount of $44.5 million (at December 31, 2012 exchange rates) in consideration of this contingency, of which $43.3 million was recorded as an adjustment to the purchase price and which included the 2007-2012 tax years plus penalties and interest through December 2012. Included in this reserve is an assumption of penalties at 75 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 December 31, 2020. 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 and 2012 expired in January 2018 and January 2019, respectively. Since we did not receive assessments for either of these periods, we reversed the amounts previously accrued, including $5.6 million related to 2011, which was released in the first quarter of 2018. During the years ended December 31, 2020, 2019 and 2018, we accrued additional interest as a charge to current income tax expense of $0.3 million, $0.9 million and $1.1 million, respectively. At current exchange rates, our accrual through December 31, 2020, including tax, penalties and interest, is $28.4 million (reported in "Other non-current liabilities"). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings per Share Total outstanding shares as of December 31, 2020, 2019 and 2018 were 94.9 million, 96.4 million and 102.7 million, respectively. Under our stock repurchase program, for the years ended December 31, 2020, 2019 and 2018, we repurchased and retired 2.7 million, 7.8 million and 6.0 million shares, respectively. For the years ended December 31, 2020, 2019 and 2018, we acquired 0.2 million, 0.5 million and 0.6 million shares, respectively, related to tax withholding in connection with 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 years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Weighted-average number of shares of common stock outstanding - basic 94.9 99.5 104.8 Stock options 0.1 0.5 1.0 Restricted stock units 1.1 1.0 1.2 Adjusted weighted-average shares and assumed conversions - diluted 96.1 101.0 107.0 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 years ended December 31, 2020, 2019 and 2018, the number of anti-dilutive shares were approximately 7.1 million, 4.7 million and 4.0 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 14. 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), Brazil, Australia, Canada, 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 December 31, 2020 and 2019, we had cash flow foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $134.3 million and $96.7 million, respectively, which were designated as hedges. Forward currency contracts used to hedge foreign denominated intercompany loans are not designated as hedging instruments. Gains and losses on these derivative instruments are recognized within "Other expense (income), 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, with some relating to intercompany loans which extend beyond December 2021. As of December 31, 2020 and 2019, we had foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $164.7 million and $182.6 million, respectively, which were not designated as hedges. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2020 and 2019: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet December 31, 2020 December 31, 2019 Balance Sheet December 31, 2020 December 31, 2019 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.1 $ 0.4 Other current liabilities $ 5.0 $ 0.9 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1.6 7.6 Other current liabilities 1.2 8.6 Foreign exchange contracts Other non-current assets 32.1 — Other non-current liabilities 32.1 — Total derivatives $ 33.8 $ 8.0 $ 38.3 $ 9.5 The following tables summarize the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018: The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss (in millions) 2020 2019 2018 2020 2019 2018 Cash flow hedges: Foreign exchange contracts $ (4.5) $ 1.0 $ 9.1 Cost of products sold $ 0.5 $ (4.2) $ (6.4) 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 (in millions) 2020 2019 2018 Foreign exchange contracts Other expense (income), net $ (0.1) $ 0.1 $ 0.7 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | 15. 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 14. 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 December 31, 2020 and 2019: (in millions) December 31, 2020 December 31, 2019 Assets: Forward currency contracts $ 33.8 $ 8.0 Liabilities: Forward currency contracts 38.3 9.5 Our forward currency contracts are included in "Other current assets," "Other current liabilities," "Other non-current assets," 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 the banks or foreign currency dealers. As such, these derivative instruments are classified within Level 2. The fair values of cash and cash equivalents, notes payable to banks, accounts receivable and accounts payable approximate carrying amounts due principally to their short maturities. The carrying amount of total debt was $1,136.6 million and $816.0 million and the estimated fair value of total debt was $1,146.9 million and $831.4 million as of December 31, 2020 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 16. Accumulated Other Comprehensive Income (Loss) AOCI is defined as net income (loss) and other changes in stockholders’ equity from transactions and other events from sources other than stockholders. The components of, and changes in, AOCI were as follows: (in millions) Derivative Financial Instruments Foreign Currency Adjustments Unrecognized Pension and Other Post-retirement Benefit Costs Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ 2.1 $ (299.2) $ (164.6) $ (461.7) Other comprehensive income (loss) before reclassifications, net of tax 0.6 (0.3) (45.9) (45.6) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (2.9) — 4.5 1.6 Balance at December 31, 2019 (0.2) (299.5) (206.0) (505.7) Other comprehensive loss before reclassifications, net of tax (3.2) (19.3) (43.0) (65.5) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.3 — 6.7 7.0 Balance at December 31, 2020 $ (3.1) $ (318.8) $ (242.3) $ (564.2) The reclassifications out of AOCI for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Gain (loss) on cash flow hedges: Foreign exchange contracts $ (0.5) $ 4.2 $ 6.4 Cost of products sold Tax benefit (expense) 0.2 (1.3) (1.8) Income tax expense Net of tax $ (0.3) $ 2.9 $ 4.6 Defined benefit plan items: Amortization of actuarial loss $ (8.0) $ (5.2) $ (5.1) (1) Amortization of prior service cost (0.7) (0.7) (0.3) (1) Total before tax (8.7) (5.9) (5.4) Tax benefit 2.0 1.4 0.7 Income tax expense Net of tax $ (6.7) $ (4.5) $ (4.7) Total reclassifications for the period, net of tax $ (7.0) $ (1.6) $ (0.1) (1) These AOCI components are included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See "Note 6. Pension and Other Retiree Benefits" for additional details). |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 17. Revenue Recognition On January 1, 2018, the Company adopted accounting standard ASU 2014-09, Revenue from Contracts with Customers and all related amendments (Topic 606), applying the modified retrospective transition method to all customer contracts that were not completed as of January 1, 2018. 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, 2019, there was $5.5 million of unearned revenue associated with outstanding EMAs, primarily reported in "Other current liabilities." During the year ended December 31, 2020, $4.8 million of the unearned revenue was earned and recognized. As of December 31, 2020, the amount of unearned revenue from EMAs was $3.0 million. We expect to earn and recognize approximately $2.3 million of the unearned amount in the next 12 months and $0.7 million in periods beyond the next 12 months. The following tables presents our net sales disaggregated by regional geography (1) , based upon our reporting business segments for the years ended December 31, 2020, 2019 and 2018, and our net sales disaggregated by the timing of revenue recognition for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 United States $ 725.3 $ 847.9 $ 819.7 Canada 96.8 118.9 121.0 ACCO Brands North America 822.1 966.8 940.7 ACCO Brands EMEA (2) 523.9 569.3 605.2 Australia/N.Z. 128.7 145.3 169.2 Latin America 138.8 229.1 178.0 Asia-Pacific 41.7 45.2 48.1 ACCO Brands International 309.2 419.6 395.3 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 (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. (in millions) 2020 2019 2018 Product and services transferred at a point in time $ 1,604.3 $ 1,892.9 $ 1,878.2 Product and services transferred over time 50.9 62.8 63.0 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 18. Information on Business Segments The Company has three operating business segments, each of which is comprised of different geographic regions. The Company's three operating segments are as follows: Operating Segment Geography Primary Brands Primary Products ACCO Brands North America United States and Canada Five Star ® , Quartet ® , AT-A-GLANCE ® , GBC ® , Swingline ® , Kensington ® , Mead ® , Hilroy ® and PowerA ® Computer and gaming accessories, school products, planners, storage and organization (3-ring binders), dry erase boards, laminating, binding, stapling and punching products. ACCO Brands EMEA Europe, Middle East and Africa Leitz ® , Rapid ® , Esselte ® , Kensington ® , Rexel ® GBC ® , NOBO ® , Derwent ® and PowerA ® Storage and organization products (lever-arch binders, sheet protectors, indexes), computer and gaming accessories, stapling, punching, laminating, shredding, do-it-yourself tools, dry erase boards and writing instruments ACCO Brands International Australia/N.Z., Latin America and Asia-Pacific Tilibra ® , GBC ® , Barrilito ® , Foroni ® , Marbig ® , Kensington ® , Artline ®* , Wilson Jones ® , PowerA ® , Quartet ® , Spirax ® and Rexel ® *Australia/N.Z. only School notebooks, storage and organization products (binders, sheet protectors and indexes), laminating, shredding, writing and arts products, janitorial supplies, dry erase boards and stapling and punching products Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and other end-user demanded branded products used in businesses, schools, and homes. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing. Our product categories include computer and gaming accessories; storage and organization; notebooks; laminating, shredding, and binding machines; calendars; stapling; punching; dry erase boards; and do-it-yourself tools, among others. Our portfolio 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, contract stationers, and specialist technology businesses. We also sell directly to commercial and consumer end-users through e-commerce sites and our direct sales organization. Net sales by reportable business segment for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 822.1 $ 966.8 $ 940.7 ACCO Brands EMEA 523.9 569.3 605.2 ACCO Brands International 309.2 419.6 395.3 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 Operating income by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 83.0 $ 131.0 $ 116.6 ACCO Brands EMEA 51.6 58.6 59.4 ACCO Brands International 15.6 48.5 49.2 Segment operating income 150.2 238.1 225.2 Corporate (1) (37.8) (41.9) (38.2) Operating income (2) 112.4 196.2 187.0 Interest expense 38.8 43.2 41.2 Interest income (1.0) (3.2) (4.4) Non-operating pension income (5.6) (5.5) (9.3) Other expense (income), net 1.6 (1.8) 1.6 Income before income tax $ 78.6 $ 163.5 $ 157.9 (1) Corporate operating loss in 2020, 2019 and 2018 includes transaction costs of $3.7 million, $1.6 million and $0.5 million respectively, primarily for legal and due diligence expenditures associated with the PowerA, Foroni and GOBA acquisitions. (2) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; and v) less restructuring charges. The following table presents the measure of reportable business segment assets used by the Company’s chief operating decision maker as of December 31, 2020 and 2019: (in millions) 2020 2019 ACCO Brands North America (3) $ 401.4 $ 403.4 ACCO Brands EMEA (3) 265.8 257.9 ACCO Brands International (3) 272.1 384.1 Total segment assets 939.3 1,045.4 Unallocated assets 2,108.1 1,742.3 Corporate (3) 1.3 0.9 Total assets $ 3,048.7 $ 2,788.6 (3) Represents total assets, excluding goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. As a supplement to the presentation of reportable business segment assets presented above, the table below presents reportable business segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations as of December 31, 2020 and 2019: (in millions) 2020 2019 ACCO Brands North America (4) $ 1,476.3 $ 1,165.1 ACCO Brands EMEA (4) 710.4 670.9 ACCO Brands International (4) 556.9 686.7 Total segment assets 2,743.6 2,522.7 Unallocated assets 303.8 265.0 Corporate (4) 1.3 0.9 Total assets $ 3,048.7 $ 2,788.6 (4) Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. Capital spend by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 9.3 $ 21.7 $ 24.3 ACCO Brands EMEA 4.0 7.0 6.1 ACCO Brands International 2.0 4.1 3.7 Total capital spend $ 15.3 $ 32.8 $ 34.1 Depreciation expense by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 19.6 $ 17.3 $ 15.9 ACCO Brands EMEA 12.7 12.2 12.6 ACCO Brands International 5.6 5.4 5.5 Total depreciation $ 37.9 $ 34.9 $ 34.0 Property, plant and equipment, net by reportable business segment as of December 31, 2020 and 2019 was as follows: (in millions) 2020 2019 U.S. $ 107.1 $ 116.6 Canada 1.2 1.7 ACCO Brands North America 108.3 118.3 ACCO Brands EMEA 88.8 92.8 Australia/N.Z. 12.3 12.1 Latin America 30.4 42.2 Asia-Pacific 1.6 1.7 ACCO Brands International 44.3 56.0 Property, plant and equipment, net $ 241.4 $ 267.1 Top Customers Net sales to our five largest customers totaled $554.7 million, $641.5 million and $577.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. No customer exceeded 10 percent of net sales for the years ended December 31, 2020 and 2018, respectively. Net sales to Staples/Essendant, our largest customer, were $200.2 million (10 percent) for the year ended December 31, 2019. Except as disclosed, no other customer represented more than 10 percent of net sales in any of the last three years. As of December 31, 2020 and 2019, our top five trade account receivables totaled $118.2 million and $112.9 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. 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. For further information, see "Note 12. 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 has and will recognize income only for the amount of Tax Credits actually monetized, which will occur 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 has and will be recorded in the Consolidated Statements of Income in the line item "Other expense (income), net." Tilibra has received final decisions for Tax Credits in the amount of $4.3 million, of which $3.3 million was offset against Brazilian taxes in the fourth quarter of 2019, with the balance used during the first quarter of 2020. This amount of Tax Credits assumes that only the net amount of ICMS paid can be excluded from the tax base. The total 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, in years prior to its acquisition, also filed legal actions in Brazil to recover these excess indirect tax payments; however, all of Foroni’s claims are still pending a final decision. In the event any Tax Credits are recovered on behalf of Foroni, we are required under the quota purchase agreement to remit such recovery to the former owners of Foroni on a net of income tax paid basis, and therefore will not recognize any benefit in the Consolidated Statements of Income. Other Pending Litigation We are party to various lawsuits and regulatory proceedings, primarily related to alleged patent infringement, 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. Unconditional Purchase Commitments Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2020 were as follows: (in millions) 2021 $ 91.8 2022 1.4 2023 0.6 2024 0.1 2025 0.1 Thereafter — Total unconditional purchase commitments $ 94.0 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 20. Quarterly Financial Information (Unaudited) The following is an analysis of certain line items in the Consolidated Statements of Income by quarter for 2020 and 2019: (in millions, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2020 Net sales (1) $ 384.1 $ 366.9 $ 444.1 $ 460.1 Gross profit 112.2 110.0 127.1 143.1 Operating income 17.4 18.5 34.3 42.2 Net income $ 8.0 $ 5.4 $ 18.8 $ 29.8 Per share: Basic income per share (2) $ 0.08 $ 0.06 $ 0.20 $ 0.31 Diluted income per share (2) $ 0.08 $ 0.06 $ 0.20 $ 0.31 2019 Net sales (1) $ 393.9 $ 518.7 $ 505.7 $ 537.4 Gross profit 125.8 165.8 155.9 186.0 Operating income 17.9 61.4 48.8 68.1 Net income $ (0.6) $ 35.9 $ 28.0 $ 43.5 Per share: Basic income per share (2) $ (0.01) $ 0.35 $ 0.29 $ 0.45 Diluted income per share (2) $ (0.01) $ 0.35 $ 0.28 $ 0.44 (1) Our recent acquisition of PowerA and previous acquisitions in Mexico and Brazil have increased the size of our seasonal businesses. As a result of the seasonal nature of the demand for our products, we have generated, and we expect to continue to generate, a significant percentage of our sales and profit during the second, third, and fourth quarters. However, our cash flow seasonality is almost all in the second half of the year, as the cash inflow in the first quarter is consumed in the second quarter as inventory. Our third and fourth quarter cash flow comes from completing the working capital cycle and collecting our accounts receivable. (2) The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing shares of common stock and repurchasing of shares of common stock during the year. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Allowances for Doubtful Accounts Changes in the allowances for doubtful accounts were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Balance at beginning of year $ 6.7 $ 6.5 $ 5.4 Additions charged to expense 8.0 1.6 0.3 Deductions - write offs (3.0) (2.6) (1.1) Acquisitions — 1.3 2.2 Foreign exchange changes (0.3) (0.1) (0.3) Balance at end of year $ 11.4 $ 6.7 $ 6.5 Allowances for Sales Discounts and Other Credits Changes in the allowances for sales discounts and returns were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Balance at beginning of year $ 7.7 $ 7.8 $ 9.7 Additions charged to expense 12.2 13.5 12.7 Deductions (7.9) (13.7) (11.1) Reclass to Other current liabilities (1) — — (3.4) Acquisitions — — 0.3 Foreign exchange changes 0.2 0.1 (0.4) Balance at end of year $ 12.2 $ 7.7 $ 7.8 (1) On January 1, 2018, the Company adopted accounting standard ASU 2014-09, Revenue from Contracts with Customers and all related amendments (Topic 606), applying the modified retrospective transition method to all customer contracts that were not completed as of January 1, 2018. As a result, the allowance for returns has been reclassified from "Accounts receivable, net" to "Other current liabilities." For more information, see "Note 2. Recent Accounting Pronouncements and Adopted Accounting Standards" to the consolidated financial statements contained in Part II, Item 8. of this report. Allowances for Cash Discounts Changes in the allowances for cash discounts were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Balance at beginning of year $ 2.0 $ 1.7 $ 3.0 Additions charged to expense 19.7 22.2 19.6 Deductions - discounts taken (19.9) (21.8) (21.3) Acquisitions — — 0.5 Foreign exchange changes 0.1 (0.1) (0.1) Balance at end of year $ 1.9 $ 2.0 $ 1.7 Warranty Reserves Changes in the reserve for warranty claims were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Balance at beginning of year $ 5.4 $ 4.9 $ 4.1 Provision for warranties issued 3.5 3.9 4.1 Deductions - settlements made (in cash or in kind) (3.1) (3.4) (3.1) Foreign exchange changes 0.3 — (0.2) Balance at end of year $ 6.1 $ 5.4 $ 4.9 Income Tax Valuation Allowance Changes in the deferred tax valuation allowances were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Balance at beginning of year $ 51.6 $ 50.8 $ 45.0 Debits (Credits) to expense 2.2 0.4 6.9 Foreign exchange changes 1.6 0.4 (1.1) Balance at end of year $ 55.4 $ 51.6 $ 50.8 |
Basis Of Presentation Consolida
Basis Of Presentation Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation policy | The consolidated financial statements include the accounts of ACCO Brands Corporation and its domestic and international subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Our financial statements are prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP"). Preparation of our financial statements requires us to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses presented for each reporting period in the financial statements and the related accompanying notes. Actual results could differ significantly from those estimates. We regularly review our assumptions and estimates, which are based on historical experience and, where appropriate, current business trends. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. |
Accounts Receivables and Allowances for Sales/Pricing/Cash Discounts and Doubtful Accounts | Accounts Receivable and Allowances for Sales/Pricing/Cash Discounts and Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for sales/pricing discounts and doubtful accounts. The allowance for sales/pricing/cash discounts represents estimated uncollectible receivables associated with the products previously sold to customers, and is recorded at the same time that the sales are recognized. The allowance is based on historical trends. The allowance for doubtful accounts represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations, usually due to a customer's potential insolvency. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults on a general formulaic basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with a specific customer. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical experience and existing economic conditions. The allowances are recorded as reductions to "Net sales" and "Accounts receivable, net." |
Inventories | InventoriesInventories are priced at the lower of cost (principally first-in, first-out) or net realizable value. When necessary, the write-down of inventory to its net realizable value is recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as product discontinuance or engineering/material changes. These estimates could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from our expectations. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset are capitalized; maintenance and repair costs are expensed. Purchased computer software is capitalized and amortized over the software’s useful life. The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years |
Long-Lived Assets | Long-Lived AssetsWe test long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable from its undiscounted future cash flow. When such events occur, we compare the sum of the undiscounted cash flow expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate at the time of future cash flow, derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flow. The discount rate applied to these cash flows is based on our weighted average cost of capital, computed by selecting market rates at the valuation dates for debt and equity that are reflective of the risks associated with an investment in our industry as estimated by using comparable publicly traded companies. |
Intangible Assets | Intangible Assets Intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. Certain of our trade names have been assigned an indefinite life as we currently anticipate that these trade names will contribute cash flows to ACCO Brands indefinitely. Amortizable intangible assets are amortized over their useful lives. We test indefinite-lived intangibles for impairment annually, during the second quarter, and during any interim period when market or business events indicate there may be a potential adverse impact on a particular intangible. The test may be on a qualitative or quantitative basis as allowed by GAAP. We consider the implications of both external factors (e.g., market growth, pricing, competition, and technology) and internal factors (e.g., product costs, margins, support expenses, and capital investment) and their potential impact on cash flows in both the near and long term, as well as their impact on any identifiable intangible asset associated with the business. Based on recent business results, consideration of significant external and internal factors, and the resulting business projections, indefinite-lived intangible assets are reviewed to determine whether they are likely to remain indefinite-lived, or whether a finite life is more appropriate. In addition, based on events in the period and future expectations, management considers whether the potential for impairment exists. Finite lived intangibles are amortized over 5, 7, 10, 15, 23 or 30 years. |
Goodwill | Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition when compared with the fair value of the net assets acquired. The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. We test goodwill for impairment annually, during the second quarter, or any interim period when market or business events indicate there may be a potential adverse impact on goodwill. As permitted by GAAP, we may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test as required by GAAP. We performed our annual assessment in the second quarter of 2020, on a qualitative basis, and concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if it is determined that a qualitative assessment is not appropriate, we would perform a quantitative goodwill impairment test where we calculate the fair value of the reporting units. When applying a fair-value-based test, the fair value of a reporting unit is compared with its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, an impairment charge is recognized, however, the loss recognized is not to exceed the total amount of goodwill allocated to the reporting unit. The implied fair values of all three of our reporting units, more likely than not, exceed their carrying values at December 31, 2020. In addition, we have not identified a triggering event that would cause us to perform a quantitative goodwill impairment analysis. In management’s opinion, the goodwill balance for our ACCO Brands International reporting unit could be at risk for impairment if operating performance does not recover as expected from the current impacts of COVID-19, if we experience negative changes to the long-term outlook for the business, or changes in factors and assumptions which impact the fair value of our reporting units such as low or declining revenue growth rates, depressed operating margins or adverse changes to the discount rates impacting this report unit. |
Employee Benefit Plans | Employee Benefit PlansWe provide a range of benefits to our employees and retired employees, including pension, post-retirement, post-employment and health care benefits. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, including discount rates, assumed rates of return, mortality rate tables, compensation increases, turnover rates and health care cost trends. Actuarial assumptions are reviewed on an annual basis and modifications to these assumptions are made based on current rates and trends when it is deemed appropriate. As required by GAAP, the effect of our modifications and unrecognized actuarial gains and losses are generally recorded to a separate component of accumulated other comprehensive income (loss) ("AOCI") in stockholders’ equity and amortized over future periods. |
Income Taxes | Income Taxes Deferred tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred tax assets to an amount that is more likely than not to be realized. Facts and circumstances may change and cause us to revise our conclusions regarding our ability to realize certain net operating losses and other deferred tax attributes. The amount of income taxes that we pay is subject to ongoing audits by federal, state and foreign tax authorities. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period any assessments are received, revised or resolved. |
Revenue Recognition | 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 receive in exchange for those goods or services. Taxes we collect concurrent with revenue producing activities are excluded from revenue. Incidental items incurred that are immaterial in the context of the contract are expensed. 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. Products : For our products, we transfer control and recognize a sale primarily when we either ship the product from our manufacturing facility or distribution center, or upon delivery to a customer specified location depending upon the terms in the customer agreement. In addition, we recognize revenue for private label products as the product is manufactured (or over time) when a contract has an enforceable right to payment. For consignment arrangements, revenue is not recognized until the products are sold to the end customer. Customer Program Costs : Customer programs and incentives ("Customer Program Costs") are a common practice in our industry. We incur Customer Program Costs to obtain favorable product placement, to promote sell-through of products and to maintain competitive pricing. The amount of consideration we receive and revenue we recognize is impacted by Customer Program Costs, including sales rebates (which are generally tied to achievement of certain sales volume levels); in-store promotional allowances; shared media and customer catalog allowances; other cooperative advertising arrangements; freight allowance programs offered to our customers; allowances for discounts and reserves for returns. We recognize Customer Program Costs, primarily as a deduction to gross sales, at the time that the associated revenue is recognized. Customer Program Costs are based on management's best estimates using the most likely amount method and is an amount that is probable of not being reversed. In the absence of a signed contract, estimates are based on historical or projected experience for each program type or customer. We adjust our estimate of revenue when the most likely amount of consideration we expect to receive changes. Service or Extended Maintenance Agreements ("EMAs"): Depending on the terms of the EMA, we may defer recognition of the consideration received for any unsatisfied obligations. We use an observable price to determine the stand-alone selling price for separate performance obligations or an estimated cost plus margin approach, for our separately priced service/maintenance agreements that extend mechanical and maintenance coverage beyond our base warranty coverage to our Print Finishing Solutions customers. These agreements range in duration from three Shipping and Handling : 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 products are shipped. We reflect all amounts billed to customers for shipping and handling in net sales and the costs we incurred for shipping and handling (including costs to ship and move product from the seller’s place of business to the buyer’s place of business, as well as costs to store, move and prepare products for shipment) in cost of products sold. Reserve for Sales Returns: The reserve for sales returns represents estimated uncollectible receivables associated with the potential return of products previously sold to customers, and is recorded at the same time that the sales are recognized. The reserve includes a general provision for product returns based on historical trends. In addition, the reserve includes amounts for currently authorized customer returns that are considered to be abnormal in comparison to the historical trends. We record the returns reserve, on a gross basis, as a reduction to "Net sales" and "Cost of products sold" with increases to "Other current liabilities" and "Inventories." |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes all manufacturing, product sourcing and distribution costs, including depreciation related to assets used in the manufacturing, procurement and distribution process, allocation of certain information technology costs supporting those processes, inbound and outbound freight, shipping and handling costs, purchasing costs associated with materials and packaging used in the production processes, and inventory valuation adjustments. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses ("SG&A") include advertising, marketing, and selling (including commissions) expenses, research and development, customer service, depreciation related to assets outside the manufacturing and distribution processes and all other general and administrative expenses outside the manufacturing and distribution functions (e.g., finance, human resources, information technology, legal and other corporate expenses). |
Advertising Costs | Advertising Expenses Advertising expenses were $99.0 million, $98.4 million and $105.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " above, and are principally expensed as incurred. |
Warranty Reserves | Warranty Reserves We offer our customers various warranty terms based on the type of product that is sold. Estimated future obligations related to products sold under these warranty terms are provided by charges to cost of products sold in the same period in which the related revenue is recognized. |
Research and Development | Research and Development Expenses Research and development expenses were $19.7 million, $21.8 million and $23.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, are classified as SG&A expenses and are charged to expense as incurred. |
Stock-Based Compensation | Stock-Based Compensation Our primary types of share-based compensation consist of stock options, restricted stock unit awards and performance stock unit awards. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Where awards are made with non-substantive vesting periods (for example, where a portion of the award vests due to retirement eligibility), we estimate and recognize expense based on the period from the grant date to the date on which the employee is retirement eligible. The Company accounts for forfeitures as they occur. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period. The related translation adjustments are made directly to a separate component of AOCI in stockholders’ equity. Some transactions are made in currencies different from an entity’s functional currency; gains and losses on these foreign currency transactions are included in the income statement. |
Derivatives Financial Instruments | Derivative Financial Instruments We recognize all derivatives as either assets or liabilities on the balance sheet and record those instruments at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI and are recognized in the Consolidated Statements of Income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Certain forecasted transactions, and assets and liabilities are exposed to foreign currency risk. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2020. The Company does not expect a material impact on its consolidated financial statements from the adoption of this standard. 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. In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying current GAAP to contracts, hedging relationships, and other transactions affected by the transition from the use of LIBOR to an alternative reference rate. We are currently evaluating our contracts and hedging relationships that reference LIBOR and the potential effects of adopting this new guidance. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, an accounting standard that requires companies to utilize an impairment model (current expected credit loss, or "CECL") for most financial assets measured at amortized cost and certain other financial instruments, which include, but are not limited to, trade and other receivables. This accounting standard replaced the incurred loss model with a model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate those losses. Effective January 1, 2020, the Company adopted this standard. The adoption of this standard did not have a material impact on our consolidated financial statements. There were no other accounting standards that were adopted in 2020 that had a material effect on the Company’s financial condition, results of operations or cash flow. On January 1, 2019, the Company adopted accounting standard ASU No. 2016-02, Leases (Topic 842) The adoption of ASU 2016-02 did not materially affect our Consolidated Statements of Income, Consolidated Statements of Cash Flows or Consolidated Statement of Stockholders' Equity. See "Note 5. Leases" for further details and the required disclosures related to ASU 2016-02. On January 1, 2018, we adopted the accounting standard ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (Topic 606) and applied it to contracts which were not completed as of January 1, 2018 using the modified retrospective method. A completed contract is one where all (or substantially all) of the revenue was recognized in accordance with the revenue guidance that was in effect before the date of initial application of ASU 2014-09. We recognized the cumulative effect of $1.6 million, net of tax, upon adopting ASU 2014-09 as an addition to opening retained earnings as of January 1, 2018. See "Note 17. Revenue Recognition" for the required disclosures related to ASU 2014-09. |
Lease Policy (Policies)
Lease Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Lessee, Leases [Policy Text Block] | 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 Consolidated Balance Sheet. The Company currently has an immaterial amount of financing leases and leases with terms of more than one month and 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 incremental borrowing rate is dependent upon duration of the lease and has been segmented into three groups of time. All leases within the same region and the same group of time share the same incremental borrowing rate. The Company has lease agreements with lease and non-lease components, which are combined for accounting purposes for all classes of assets except information technology equipment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years The components of net property, plant and equipment were as follows: December 31, (in millions) 2020 2019 Land and improvements $ 23.2 $ 24.0 Buildings and improvements to leaseholds 145.9 145.0 Machinery and equipment 480.4 475.1 Construction in progress 8.3 7.6 657.8 651.7 Less: accumulated depreciation (416.4) (384.6) Property, plant and equipment, net (1) $ 241.4 $ 267.1 (1) Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PowerA | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of the PowerA Acquisition: (in millions) At December 17, 2020 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 340.0 Fair value of contingent consideration $ 18.2 Plus fair value of liabilities assumed: Accrued liabilities 9.5 Fair value of liabilities assumed $ 9.5 Less fair value of assets acquired: Inventory 28.7 Property and equipment 0.2 Identifiable intangibles 239.7 Other assets 13.5 Fair value of assets acquired $ 282.1 Goodwill $ 85.6 |
Foroni Acquisition | |
Business Acquisition [Line Items] | |
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 the Foroni acquisition: (in millions) At August 1, 2019 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 41.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 13.9 Deferred tax liabilities 5.4 Debt 7.6 Lease liabilities 5.3 Other non-current liabilities 1.5 Fair value of liabilities assumed $ 33.7 Less fair value of assets acquired: Accounts receivable 17.5 Inventory 12.5 Property and equipment 8.8 Identifiable intangibles 11.1 Deferred tax assets 2.7 Right of use asset, leases 5.3 Other assets 3.6 Fair value of assets acquired $ 61.5 Goodwill $ 13.7 |
Cumberland Asset Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | 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 |
GOBA Acquisition | |
Business Acquisition [Line Items] | |
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 the GOBA 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 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) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019: (in millions) 2020 2019 Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.50% at December 31, 2020 and 1.50% at December 31, 2019) $ 287.4 $ 275.9 USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.44% at December 31, 2019) 92.5 97.5 Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.45% at December 31, 2019) 43.4 41.6 U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.26% at December 31, 2019) 307.2 8.2 Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.44% at December 31, 2019) 25.4 14.0 Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 375.0 375.0 Other borrowings 5.7 3.8 Total debt 1,136.6 816.0 Less: Current portion 76.5 33.2 Debt issuance costs, unamortized 5.5 5.6 Long-term debt, net $ 1,054.6 $ 777.2 |
Schedule of Debt Consolidated Leverage Ratio | amended the maximum Consolidated Leverage Ratio financial covenant by 0.50:1.00 from current levels for each of the six fiscal quarters ending March 31, 2021 and ending June 30, 2022, as follows: Quarter Ended Maximum Consolidated Leverage Ratio March 2021 5.25:1.00 June 2021 5.25:1.00 September 2021 4.75:1.00 December 2021 4.25:1.00 March 2022 4.25:1.00 June 2022 4.25:1.00 September 2022 and thereafter 3.75:1.00 |
Schedule of Credit Spread Based on Consolidated Leverage Ratio | 4.25 to 1.00 2.75% 1.75% 0.50% ≤ 4.25 to 1.00 and > 4.00 to 1.00 2.50% 1.50% 0.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% 0.38% ≤ 3.50 to 1.00 and > 3.25 to 1.00 2.00% 1.00% 0.38% ≤ 3.25 to 1.00 and > 3.00 to 1.00 1.75% 0.75% 0.30% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% 0.25% ≤ 2.00 to 1.00 1.25% 0.25% 0.20%" id="sjs-B6">Amounts outstanding under the Credit Agreement, as amended, bear interest at a rate per annum equal to the Euro Rate (with a zero percent floor for Euro borrowings and a 1.00 percent floor for USD borrowings), the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the Credit Agreement, as amended, plus an "applicable rate." The applicable rate applied to outstanding Euro, Australian and Canadian dollar denominated loans and Base Rate loans is based on the Company’s Consolidated Leverage Ratio as follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans Undrawn Fee > 4.25 to 1.00 2.75% 1.75% 0.50% ≤ 4.25 to 1.00 and > 4.00 to 1.00 2.50% 1.50% 0.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% 0.38% ≤ 3.50 to 1.00 and > 3.25 to 1.00 2.00% 1.00% 0.38% ≤ 3.25 to 1.00 and > 3.00 to 1.00 1.75% 0.75% 0.30% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% 0.25% ≤ 2.00 to 1.00 1.25% 0.25% 0.20% |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Operating lease cost $ 28.3 $ 29.6 Sublease income (1.2) (1.7) Total lease cost $ 27.1 $ 27.9 Total rental expense reported in our Consolidated Statements of Income for all non-cancelable operating leases (reduced by minor amounts for subleases) amounted to $33.0 million for the year ended December 31, 2018 . Other information related to leases for the years ended December 31, 2020 and 2019 was as follows: (in millions, except lease term and discount rate) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28.8 $ 29.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9.0 $ 35.5 Weighted average remaining lease term: Operating leases 6.4 years Weighted average discount rate: Operating leases 5.2 % |
Future Minimum Lease Payments | Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of December 31, 2020 were as follows: (in millions) 2021 $ 28.6 2022 21.1 2023 16.3 2024 13.2 2025 9.8 Thereafter 32.0 Total minimum lease payments 121.0 Less imputed interest 21.9 Future minimum payments for leases, net of sublease rental income and imputed interest $ 99.1 |
Pension and Other Retiree Ben_2
Pension and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet Net Funded Status | The following table sets forth our defined benefit pension and post-retirement plans funded status and the amounts recognized in our Consolidated Balance Sheets: Pension Post-retirement U.S. International (in millions) 2020 2019 2020 2019 2020 2019 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 211.6 $ 188.3 $ 690.7 $ 627.3 $ 5.3 $ 6.2 Service cost 1.6 1.3 1.5 1.3 — — Interest cost 5.9 7.4 9.7 13.4 0.1 0.2 Actuarial loss (gain) 17.9 25.2 60.7 67.6 — (0.9) Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (10.9) (10.6) (27.6) (28.6) (0.5) (0.4) Settlement — — (27.4) (0.4) — — Foreign exchange rate changes — — 41.0 10.0 0.1 0.1 Projected benefit obligation at end of year 226.1 211.6 748.7 690.7 5.1 5.3 Change in plan assets Fair value of plan assets at beginning of year 158.0 141.1 460.3 417.6 — — Actual return on plan assets 18.6 21.9 45.0 45.5 — — Employer contributions 4.9 5.6 14.2 14.1 0.4 0.3 Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (10.9) (10.6) (27.6) (28.7) (0.5) (0.4) Settlement — — (27.4) (0.4) — — Foreign exchange rate changes — — 20.2 12.1 — — Fair value of plan assets at end of year 170.6 158.0 484.8 460.3 — — Funded status (Fair value of plan assets less PBO) $ (55.5) $ (53.6) $ (263.9) $ (230.4) $ (5.1) $ (5.3) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.6 $ 1.2 $ — $ — Other current liabilities — — 7.5 6.8 0.5 0.5 Pension and post-retirement benefit obligations 55.5 53.6 257.0 224.8 4.6 4.8 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 110.0 74.1 208.3 129.8 (4.4) (4.0) Unrecognized prior service cost (credit) 1.5 1.4 6.4 4.9 (0.1) (0.2) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets: U.S. International (in millions) 2020 2019 2020 2019 Accumulated benefit obligation $ 226.1 $ 211.6 $ 716.0 $ 638.4 Fair value of plan assets 170.6 158.0 463.7 417.5 |
Schedule of Defined Benefit Plan, Plan with Projected Benefit Obligations in Excess of Plan Assets [Table Text Block] | The following table sets out information for pension plans with a projected benefit obligation in excess of plan assets: U.S. International (in millions) 2020 2019 2020 2019 Projected benefit obligation $ 226.1 $ 211.6 $ 728.3 $ 649.1 Fair value of plan assets 170.6 158.0 463.7 417.5 |
Components of Net Periodic Benefit (Income) Expense for Pension and Post-Retirement Plans | The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2020, 2019, and 2018, were as follows: Pension Post-retirement U.S. International (in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Service cost $ 1.6 $ 1.3 $ 1.6 $ 1.5 $ 1.3 $ 1.9 $ — $ — $ 0.1 Interest cost 5.9 7.4 6.7 9.7 13.4 12.9 0.1 0.2 0.2 Expected return on plan assets (11.4) (11.7) (11.8) (18.6) (20.5) (22.7) — — — Amortization of net loss (gain) 3.2 2.2 2.7 4.9 3.3 3.4 (0.5) (0.4) (0.4) Amortization of prior service cost (credit) 0.4 0.4 0.4 0.3 0.3 — — — (0.1) Curtailment gain — — — — — (0.6) — — — Settlement loss — — — 0.4 0.1 — — — — Net periodic benefit income (1) $ (0.3) $ (0.4) $ (0.4) $ (1.8) $ (2.1) $ (5.1) $ (0.4) $ (0.2) $ (0.2) |
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations that were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International (in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Current year actuarial loss (gain) $ 10.6 $ 15.0 $ 12.0 $ 36.5 $ 43.3 $ 5.3 $ — $ (1.0) $ (0.3) Amortization of actuarial (loss) gain (3.2) (2.2) (2.7) (5.3) (3.3) (3.4) 0.5 0.4 0.4 Current year prior service cost — — — — — 6.5 — — — Amortization of prior service (cost) credit (0.4) (0.4) (0.4) (0.3) (0.3) 0.3 — — 0.1 Foreign exchange rate changes — — — 8.5 3.4 (7.1) — — 0.1 Total recognized in other comprehensive income (loss) $ 7.0 $ 12.4 $ 8.9 $ 39.4 $ 43.1 $ 1.6 $ 0.5 $ (0.6) $ 0.3 Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ 6.7 $ 12.0 $ 8.5 $ 37.6 $ 41.0 $ (3.5) $ 0.1 $ (0.8) $ 0.1 |
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 2.6 % 3.3 % 4.6 % 1.2 % 1.8 % 2.5 % 1.9 % 2.7 % 3.7 % Rate of compensation increase N/A N/A N/A 2.9 % 2.9 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2020, 2019, and 2018 were as follows: Pension Post-retirement U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 3.2 % 4.0 % 3.5 % 1.6 % 2.4 % 2.1 % 2.7 % 3.6 % 3.2 % Expected long-term rate of return 7.0 % 7.4 % 7.4 % 4.2 % 5.0 % 5.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 2.9 % 3.0 % 2.8 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit (income) expense as of December 31, 2020, 2019, and 2018 were as follows: Post-retirement 2020 2019 2018 Health care cost trend rate assumed for next year 6 % 7 % 7 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4 % 4 % 5 % Year that the rate reaches the ultimate trend rate 2028 2027 2026 |
Schedule of Allocation of Plan Assets | Our pension plan weighted average asset allocations as of December 31, 2020 and 2019 were as follows: 2020 2019 U.S. International U.S. International Asset category Equity securities 64 % 21 % 56 % 13 % Fixed income 29 54 33 46 Real estate 6 4 3 3 Other (2) 1 21 8 38 Total 100 % 100 % 100 % 100 % (2) Multi-strategy hedge funds, insurance contracts and cash and cash equivalents for certain of our plans. |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments to participants for the next ten fiscal years: Pension Post-retirement (in millions) Benefits Benefits 2021 $ 41.4 $ 0.5 2022 41.8 0.4 2023 42.4 0.4 2024 42.8 0.4 2025 43.8 0.4 Years 2026 - 2030 223.5 1.7 |
Schedule of Multi-employer Plans | Details regarding the plan are outlined in the table below. Pension Protection Act Zone Status FIP/RP Status Pending/Implemented Contributions Expiration Date of Collective-Bargaining Agreement Year Ended December 31, Pension Fund EIN/Pension Plan Number 2020 2019 2020 2019 2018 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.1 $ 0.2 $ 0.3 Yes 6/30/2023 |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | U.S. Pension Plan Assets The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2020 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Mutual funds $ 94.8 $ — $ — $ 94.8 Exchange traded funds 74.6 — — 74.6 Common collective trust funds — 1.2 — 1.2 Total $ 169.4 $ 1.2 $ — $ 170.6 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2019 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Mutual funds $ 103.2 $ — $ — $ 103.2 Exchange traded funds 48.4 — — 48.4 Common collective trust funds — 1.5 — 1.5 Investments measured at net asset value (3) Multi-strategy hedge funds 4.9 Total $ 151.6 $ 1.5 $ — $ 158.0 (3) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the table that presents our defined benefit pension and post-retirement plans funded status. |
International | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | International Pension Plans Assets The fair value measurements of our international pension plans assets by asset category as of December 31, 2020 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 8.5 $ — $ — $ 8.5 Equity securities 99.9 — — 99.9 Exchange traded funds 0.5 — — 0.5 Corporate debt securities — 85.6 — 85.6 Multi-strategy hedge funds — 57.8 — 57.8 Insurance contracts — 4.1 — 4.1 Real estate — 9.7 — 9.7 Government debt securities — 180.9 — 180.9 Investments measured at net asset value (3) Multi-strategy hedge funds 29.8 Real estate 8.0 Total $ 108.9 $ 338.1 $ — $ 484.8 The fair value measurements of our international pension plans assets by asset category as of December 31, 2019 were as follows: (in millions) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 1.4 $ — $ — $ 1.4 Equity securities 59.9 — — 59.9 Exchange traded funds 0.4 — — 0.4 Corporate debt securities — 79.3 — 79.3 Multi-strategy hedge funds — 85.9 — 85.9 Insurance contracts — 29.6 — 29.6 Real estate — 3.9 — 3.9 Government debt securities — 132.5 — 132.5 Investments measured at net asset value (3) Multi-strategy hedge funds 57.0 Real estate 10.4 Total $ 61.7 $ 331.2 $ — $ 460.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Selling, general and administrative expense $ 6.5 $ 10.1 $ 8.8 Loss before income tax (6.5) (10.1) (8.8) Income tax benefit (1.6) (2.4) (2.2) Net loss $ (4.9) $ (7.7) $ (6.6) |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Stock-based compensation expense by award type for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Stock option compensation expense $ 2.7 $ 2.7 $ 2.0 RSU compensation expense 5.2 5.1 4.7 PSU compensation expense (1.4) 2.3 2.1 Total stock-based compensation expense $ 6.5 $ 10.1 $ 8.8 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model and the weighted average assumptions as outlined in the following table: Year Ended December 31, 2020 2019 2018 Weighted average expected lives 6.0 years 4.6 years 4.8 years Weighted average risk-free interest rate 0.81 % 2.49 % 2.62 % Weighted average expected volatility 36.0 % 36.1 % 36.4 % Expected dividend yield 3.16 % 2.65 % 1.87 % Weighted average grant date fair value $ 2.03 $ 2.40 $ 3.76 |
Summary of Changes in Stock Options Outstanding | A summary of the changes in stock options outstanding under the Plan during the year ended December 31, 2020 is presented below: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 4,417,693 $ 9.32 Granted 1,437,188 $ 8.25 Exercised (683,718) $ 6.49 Forfeited (208,278) $ 9.43 Outstanding at December 31, 2020 4,962,885 $ 9.40 5.0 years $ 1.7 million Exercisable shares at December 31, 2020 2,564,242 $ 9.84 2.7 years $ 1.4 million |
Summary of Changes in RSUs Outstanding | A summary of the changes in the RSUs outstanding under the Plan during 2020 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,716,445 $ 10.53 Granted 724,319 $ 7.92 Vested and distributed (323,818) $ 12.49 Forfeited and cancelled (66,861) $ 10.20 Outstanding at December 31, 2020 2,050,085 $ 9.31 Vested and deferred at December 31, 2020 (1) 613,853 $ 8.82 (1) Included in outstanding at December 31, 2020. Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. |
Summary of Changes in PSUs Outstanding | A summary of the changes in the PSUs outstanding under the Plan during 2020 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,021,543 $ 9.98 Granted 939,529 $ 8.25 Vested (377,073) $ 12.75 Forfeited and cancelled (67,145) $ 8.56 Other - decrease due to performance of PSUs (1,516,854) $ 8.28 Outstanding at December 31, 2020 — $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: December 31, (in millions) 2020 2019 Raw materials $ 36.8 $ 44.4 Work in process 3.5 3.5 Finished goods 264.8 235.4 Total inventories $ 305.1 $ 283.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years The components of net property, plant and equipment were as follows: December 31, (in millions) 2020 2019 Land and improvements $ 23.2 $ 24.0 Buildings and improvements to leaseholds 145.9 145.0 Machinery and equipment 480.4 475.1 Construction in progress 8.3 7.6 657.8 651.7 Less: accumulated depreciation (416.4) (384.6) Property, plant and equipment, net (1) $ 241.4 $ 267.1 (1) Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (1) — — 10.1 10.1 Foreign currency translation — 0.1 (0.5) (0.4) Balance at December 31, 2019 375.6 165.7 177.3 718.6 Acquisitions (1) 85.6 — 3.9 89.5 Foreign currency translation — 22.5 (3.2) 19.3 Balance at December 31, 2020 $ 461.2 $ 188.2 $ 178.0 $ 827.4 |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2020 and 2019 were as follows: December 31, 2020 December 31, 2019 (in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 467.5 $ (44.5) (1) $ 423.0 $ 467.3 $ (44.5) (1) $ 422.8 Amortizable intangible assets: Trade names 343.5 (97.7) 245.8 316.7 (83.7) 233.0 Customer and contractual relationships 376.8 (162.9) 213.9 241.0 (142.3) 98.7 Vendor relationships 87.7 (0.2) 87.5 — — — Patents 8.9 (2.1) 6.8 5.5 (1.4) 4.1 Subtotal 816.9 (262.9) 554.0 563.2 (227.4) 335.8 Total identifiable intangibles $ 1,284.4 $ (307.4) $ 977.0 $ 1,030.5 $ (271.9) $ 758.6 (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 for the next five years is as follows: (in millions) 2021 2022 2023 2024 2025 Estimated amortization expense (2) $ 46.3 $ 42.6 $ 40.2 $ 38.5 $ 36.8 (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. |
PowerA | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Identifiable Intangible Assets | The allocation of the identifiable intangibles acquired in the PowerA Acquisition was as follows: (in millions) Fair Value Remaining Useful Life Ranges Trade name $ 21.6 15 years Customer relationships 127.6 15 years Vendor relationships 87.7 15 years Developed technology 2.8 5 years Total identifiable intangibles acquired $ 239.7 |
Cumberland Asset Acquisition | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Identifiable Intangible Assets | 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 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Identifiable Intangible Assets | The allocations of the identifiable intangibles acquired in the GOBA Acquisition were 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) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | The summary of the activity in the restructuring liability for the year ended December 31, 2020 was as follows: (in millions) Balance at December 31, 2019 Provision Cash Non-cash Balance at December 31, 2020 Employee termination costs (1) $ 10.7 $ 8.5 $ (11.1) $ — $ 8.1 Termination of lease agreements (2) 0.6 1.5 (0.7) (0.4) 1.0 Other (3) 0.5 0.9 (0.5) (0.7) 0.2 Total restructuring liability $ 11.8 $ 10.9 $ (12.3) $ (1.1) $ 9.3 (1) We expect the remaining $8.1 million employee termination costs to be substantially paid within the next twelve months. (2) We expect the remaining $1.0 million termination of lease costs to be substantially paid within the next twelve months. (3) We expect the remaining $0.2 million of other costs to be substantially paid in the next twelve months. The summary of the activity in the restructuring accounts for the year ended December 31, 2019 was as follows: (in millions) Balance at December 31, 2018 Provision Cash Non-cash Balance at December 31, 2019 Employee termination costs $ 7.9 $ 10.9 $ (8.1) $ — $ 10.7 Termination of lease agreements 1.8 0.5 (1.7) — 0.6 Other — 0.6 (0.1) — 0.5 Total restructuring liability $ 9.7 $ 12.0 $ (9.9) $ — $ 11.8 The summary of the activity in the restructuring accounts for the year ended December 31, 2018 was as follows: (in millions) Balance at December 31, 2017 Provision Cash Non-cash Balance at December 31, 2018 Employee termination costs $ 12.0 $ 8.3 $ (12.1) $ (0.3) $ 7.9 Termination of lease agreements 0.8 3.2 (2.0) (0.2) $ 1.8 Other 0.5 0.2 (0.6) (0.1) $ — Total restructuring liability $ 13.3 $ 11.7 $ (14.7) $ (0.6) $ 9.7 Restructuring charges for the years ended December 31, 2020, 2019 and 2018 by reporting segment were as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 7.6 $ 5.6 $ 6.2 ACCO Brands EMEA 0.6 2.3 4.9 ACCO Brands International 2.6 2.7 0.6 Corporate 0.1 1.4 — Total restructuring charges $ 10.9 $ 12.0 $ 11.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before income tax for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Domestic operations $ 1.7 $ 32.0 $ 37.0 Foreign operations 76.9 131.5 120.9 Total $ 78.6 $ 163.5 $ 157.9 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 21 percent to our effective income tax rate for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Income tax at U.S. statutory rate; 21% $ 16.5 $ 34.3 $ 33.2 Effect of the U.S. Tax Act — — 3.1 Impact on final GILTI regulations for 2018 and 2019 (2.7) — — Statutory tax rate changes (2.0) — 3.9 State, local and other tax, net of federal benefit 0.1 5.8 2.2 Impact from foreign inclusions 1.3 3.1 3.7 U.S. effect of foreign dividends and withholding taxes 1.0 2.1 2.2 Foreign income taxed at a higher effective rate 1.4 4.2 0.9 Net Brazilian Tax Assessments impact 1.5 6.5 (4.4) Increase in valuation allowance 2.2 0.4 5.2 Excess expense (benefit) from stock-based compensation 0.9 0.2 (2.5) Other (3.6) 0.1 3.7 Income taxes as reported $ 16.6 $ 56.7 $ 51.2 Effective tax rate 21.1 % 34.7 % 32.4 % |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Current expense Federal and other $ (0.1) $ 5.8 $ 2.7 Foreign 24.3 42.2 25.8 Total current income tax expense 24.2 48.0 28.5 Deferred expense Federal and other (2.0) 8.4 11.1 Foreign (5.6) 0.3 11.6 Total deferred income tax expense (7.6) 8.7 22.7 Total income tax expense $ 16.6 $ 56.7 $ 51.2 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) as of December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Deferred tax assets Compensation and benefits $ 13.3 $ 15.4 Pension 60.1 52.7 Inventory 10.2 10.0 Other reserves 18.1 15.9 Accounts receivable 7.5 5.8 Foreign tax credit carryforwards 23.3 25.2 Net operating loss carryforwards 103.1 90.9 Interest expense carryforwards 9.3 6.2 Other 5.7 4.4 Gross deferred income tax assets 250.6 226.5 Valuation allowance (55.4) (51.6) Net deferred tax assets 195.2 174.9 Deferred tax liabilities Depreciation (19.0) (18.0) Unremitted non-U.S. earnings accrual (4.6) (2.0) Identifiable intangibles (199.9) (209.1) Other (5.8) (4.3) Gross deferred tax liabilities (229.3) (233.4) Net deferred tax liabilities $ (34.1) $ (58.5) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 50.5 $ 43.7 $ 47.2 Additions for tax positions of prior years 2.9 8.4 3.1 Additions for tax positions of current year — 1.5 1.5 Reductions for tax positions of prior years (1.1) (2.5) (8.2) Acquisitions 1.4 — 5.3 Decrease resulting from foreign currency translation (8.6) (0.6) (5.2) Balance at end of year $ 45.1 $ 50.5 $ 43.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our weighted-average shares outstanding for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Weighted-average number of shares of common stock outstanding - basic 94.9 99.5 104.8 Stock options 0.1 0.5 1.0 Restricted stock units 1.1 1.0 1.2 Adjusted weighted-average shares and assumed conversions - diluted 96.1 101.0 107.0 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet December 31, 2020 December 31, 2019 Balance Sheet December 31, 2020 December 31, 2019 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.1 $ 0.4 Other current liabilities $ 5.0 $ 0.9 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1.6 7.6 Other current liabilities 1.2 8.6 Foreign exchange contracts Other non-current assets 32.1 — Other non-current liabilities 32.1 — Total derivatives $ 33.8 $ 8.0 $ 38.3 $ 9.5 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018: The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss (in millions) 2020 2019 2018 2020 2019 2018 Cash flow hedges: Foreign exchange contracts $ (4.5) $ 1.0 $ 9.1 Cost of products sold $ 0.5 $ (4.2) $ (6.4) 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 (in millions) 2020 2019 2018 Foreign exchange contracts Other expense (income), net $ (0.1) $ 0.1 $ 0.7 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019: (in millions) December 31, 2020 December 31, 2019 Assets: Forward currency contracts $ 33.8 $ 8.0 Liabilities: Forward currency contracts 38.3 9.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | (in millions) Derivative Financial Instruments Foreign Currency Adjustments Unrecognized Pension and Other Post-retirement Benefit Costs Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ 2.1 $ (299.2) $ (164.6) $ (461.7) Other comprehensive income (loss) before reclassifications, net of tax 0.6 (0.3) (45.9) (45.6) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (2.9) — 4.5 1.6 Balance at December 31, 2019 (0.2) (299.5) (206.0) (505.7) Other comprehensive loss before reclassifications, net of tax (3.2) (19.3) (43.0) (65.5) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.3 — 6.7 7.0 Balance at December 31, 2020 $ (3.1) $ (318.8) $ (242.3) $ (564.2) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of AOCI for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Gain (loss) on cash flow hedges: Foreign exchange contracts $ (0.5) $ 4.2 $ 6.4 Cost of products sold Tax benefit (expense) 0.2 (1.3) (1.8) Income tax expense Net of tax $ (0.3) $ 2.9 $ 4.6 Defined benefit plan items: Amortization of actuarial loss $ (8.0) $ (5.2) $ (5.1) (1) Amortization of prior service cost (0.7) (0.7) (0.3) (1) Total before tax (8.7) (5.9) (5.4) Tax benefit 2.0 1.4 0.7 Income tax expense Net of tax $ (6.7) $ (4.5) $ (4.7) Total reclassifications for the period, net of tax $ (7.0) $ (1.6) $ (0.1) (1) These AOCI components are included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See "Note 6. Pension and Other Retiree Benefits" for additional details). |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables presents our net sales disaggregated by regional geography (1) , based upon our reporting business segments for the years ended December 31, 2020, 2019 and 2018, and our net sales disaggregated by the timing of revenue recognition for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 United States $ 725.3 $ 847.9 $ 819.7 Canada 96.8 118.9 121.0 ACCO Brands North America 822.1 966.8 940.7 ACCO Brands EMEA (2) 523.9 569.3 605.2 Australia/N.Z. 128.7 145.3 169.2 Latin America 138.8 229.1 178.0 Asia-Pacific 41.7 45.2 48.1 ACCO Brands International 309.2 419.6 395.3 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 (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. (in millions) 2020 2019 2018 Product and services transferred at a point in time $ 1,604.3 $ 1,892.9 $ 1,878.2 Product and services transferred over time 50.9 62.8 63.0 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 |
Information on Business Segme_2
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by reportable business segment for the years ended December 31, 2020, 2019 and 2018 were as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 822.1 $ 966.8 $ 940.7 ACCO Brands EMEA 523.9 569.3 605.2 ACCO Brands International 309.2 419.6 395.3 Net sales $ 1,655.2 $ 1,955.7 $ 1,941.2 |
Schedule of Operating Income by Business Segment | Operating income by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 83.0 $ 131.0 $ 116.6 ACCO Brands EMEA 51.6 58.6 59.4 ACCO Brands International 15.6 48.5 49.2 Segment operating income 150.2 238.1 225.2 Corporate (1) (37.8) (41.9) (38.2) Operating income (2) 112.4 196.2 187.0 Interest expense 38.8 43.2 41.2 Interest income (1.0) (3.2) (4.4) Non-operating pension income (5.6) (5.5) (9.3) Other expense (income), net 1.6 (1.8) 1.6 Income before income tax $ 78.6 $ 163.5 $ 157.9 (1) Corporate operating loss in 2020, 2019 and 2018 includes transaction costs of $3.7 million, $1.6 million and $0.5 million respectively, primarily for legal and due diligence expenditures associated with the PowerA, Foroni and GOBA acquisitions. (2) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Reconciliation of Assets from Segment to Consolidated | The following table presents the measure of reportable business segment assets used by the Company’s chief operating decision maker as of December 31, 2020 and 2019: (in millions) 2020 2019 ACCO Brands North America (3) $ 401.4 $ 403.4 ACCO Brands EMEA (3) 265.8 257.9 ACCO Brands International (3) 272.1 384.1 Total segment assets 939.3 1,045.4 Unallocated assets 2,108.1 1,742.3 Corporate (3) 1.3 0.9 Total assets $ 3,048.7 $ 2,788.6 (3) Represents total assets, excluding goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. |
Schedule of Assets by Segment Including Allocation of Intangible Assets and Goodwill | As a supplement to the presentation of reportable business segment assets presented above, the table below presents reportable business segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations as of December 31, 2020 and 2019: (in millions) 2020 2019 ACCO Brands North America (4) $ 1,476.3 $ 1,165.1 ACCO Brands EMEA (4) 710.4 670.9 ACCO Brands International (4) 556.9 686.7 Total segment assets 2,743.6 2,522.7 Unallocated assets 303.8 265.0 Corporate (4) 1.3 0.9 Total assets $ 3,048.7 $ 2,788.6 (4) Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. |
Schedule of Capital Spend and Depreciation Expense by Segment | Capital spend by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 9.3 $ 21.7 $ 24.3 ACCO Brands EMEA 4.0 7.0 6.1 ACCO Brands International 2.0 4.1 3.7 Total capital spend $ 15.3 $ 32.8 $ 34.1 Depreciation expense by reportable business segment for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 ACCO Brands North America $ 19.6 $ 17.3 $ 15.9 ACCO Brands EMEA 12.7 12.2 12.6 ACCO Brands International 5.6 5.4 5.5 Total depreciation $ 37.9 $ 34.9 $ 34.0 |
Schedule of Property, Plant and Equipment, Net by Geographic Region | Property, plant and equipment, net by reportable business segment as of December 31, 2020 and 2019 was as follows: (in millions) 2020 2019 U.S. $ 107.1 $ 116.6 Canada 1.2 1.7 ACCO Brands North America 108.3 118.3 ACCO Brands EMEA 88.8 92.8 Australia/N.Z. 12.3 12.1 Latin America 30.4 42.2 Asia-Pacific 1.6 1.7 ACCO Brands International 44.3 56.0 Property, plant and equipment, net $ 241.4 $ 267.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Unconditional Purchase Commitments | Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2020 were as follows: (in millions) 2021 $ 91.8 2022 1.4 2023 0.6 2024 0.1 2025 0.1 Thereafter — Total unconditional purchase commitments $ 94.0 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is an analysis of certain line items in the Consolidated Statements of Income by quarter for 2020 and 2019: (in millions, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2020 Net sales (1) $ 384.1 $ 366.9 $ 444.1 $ 460.1 Gross profit 112.2 110.0 127.1 143.1 Operating income 17.4 18.5 34.3 42.2 Net income $ 8.0 $ 5.4 $ 18.8 $ 29.8 Per share: Basic income per share (2) $ 0.08 $ 0.06 $ 0.20 $ 0.31 Diluted income per share (2) $ 0.08 $ 0.06 $ 0.20 $ 0.31 2019 Net sales (1) $ 393.9 $ 518.7 $ 505.7 $ 537.4 Gross profit 125.8 165.8 155.9 186.0 Operating income 17.9 61.4 48.8 68.1 Net income $ (0.6) $ 35.9 $ 28.0 $ 43.5 Per share: Basic income per share (2) $ (0.01) $ 0.35 $ 0.29 $ 0.45 Diluted income per share (2) $ (0.01) $ 0.35 $ 0.28 $ 0.44 (1) Our recent acquisition of PowerA and previous acquisitions in Mexico and Brazil have increased the size of our seasonal businesses. As a result of the seasonal nature of the demand for our products, we have generated, and we expect to continue to generate, a significant percentage of our sales and profit during the second, third, and fourth quarters. However, our cash flow seasonality is almost all in the second half of the year, as the cash inflow in the first quarter is consumed in the second quarter as inventory. Our third and fourth quarter cash flow comes from completing the working capital cycle and collecting our accounts receivable. (2) The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing shares of common stock and repurchasing of shares of common stock during the year. |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) $ in Millions | Dec. 17, 2020USD ($) | Aug. 01, 2019USD ($) | Jul. 02, 2018USD ($) | Dec. 31, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2020segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||
Number of operating segments | 3 | 3 | ||||||
Cost of acquisitions, net of cash acquired | $ 339.4 | $ 41.3 | $ 38 | |||||
PowerA | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of working capital adjustment | $ 340 | |||||||
Contingent consideration amount | $ 55 | |||||||
Foroni Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of working capital adjustment | $ 41.5 | |||||||
Cost of acquisitions, net of cash acquired | 41.5 | |||||||
Debt | $ 7.6 | |||||||
GOBA Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of working capital adjustment | $ 39.1 | |||||||
Cost of acquisitions, net of cash acquired | $ 37.2 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Line Items] | |||||||
Interest costs capitalized | $ 0.3 | $ 0.5 | $ 0.6 | ||||
Impairment of intangible assets | $ 0 | ||||||
Goodwill impairment loss | $ 0 | ||||||
Deferred Federal Income Tax Expense (Benefit) - Undistributed Earnings of Foreign Subsidiaries | 4.6 | ||||||
Undistributed Earnings of Foreign Subsidiaries Not Permanently Reinvested | $ 328 | $ 328 | 328 | $ 328 | |||
Undistributed earnings of foreign subsidiaries | $ 219 | $ 219 | 219 | $ 219 | |||
Advertising expenses | 99 | 98.4 | 105.5 | ||||
Research and development expenses | $ 19.7 | $ 21.8 | $ 23.8 | ||||
Number of operating segments | 3 | 3 | |||||
Number of reporting units | segment | 3 | ||||||
Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Service And Maintenance Agreement Term | 3 months | ||||||
Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Service And Maintenance Agreement Term | 60 months | ||||||
Amortizable Period, Option 1 | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 5 years | ||||||
Amortizable Period, Option 2 | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 7 years | ||||||
Amortizable Period, Option 3 | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 10 years | ||||||
Amortizable Period, Option 4 | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 15 years | ||||||
Amortizable Period, Option 5 | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 23 years | ||||||
Amortizable Period, Option 6 | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Intangible assets, amortizable life | 30 years | ||||||
Buildings | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 40 years | ||||||
Buildings | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 50 years | ||||||
Machinery, equipment and furniture | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
Machinery, equipment and furniture | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years | ||||||
Software and Software Development Costs | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 5 years | ||||||
Software and Software Development Costs | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies (Recently Adopted Accounting Standards) (Details) - Accounting Standards Update 2014-09 - Cumulative effect due to the adoption of ASUs $ in Millions | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect due to the adoption of ASUs | $ 1.6 |
Accumulated Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect due to the adoption of ASUs | $ 1.6 |
Acquisitions (PowerA Narrative)
Acquisitions (PowerA Narrative) (Details) - PowerA - USD ($) $ in Millions | Dec. 17, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Purchase price, net of working capital adjustment | $ 340 | |
Contingent consideration amount | 55 | |
Net sales | $ 7.9 | |
Present value of contingent consideration | $ 18.2 | |
SG&A Expenses | ||
Business Acquisition [Line Items] | ||
Transaction costs | $ 3.7 |
Acquisitions (Allocation of Con
Acquisitions (Allocation of Consideration Given to Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 17, 2020 | Aug. 01, 2019 | Jul. 02, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2019 |
Calculation of Goodwill: | |||||||
Net purchase price | $ 339.4 | $ 41.3 | $ 38 | ||||
Less fair value of assets acquired: | |||||||
Goodwill | $ 827.4 | $ 718.6 | $ 708.9 | ||||
PowerA | |||||||
Calculation of Goodwill: | |||||||
Purchase price, net of working capital adjustment | $ 340 | ||||||
Plus fair value of liabilities assumed: | |||||||
Accounts payable and accrued liabilities | 9.5 | ||||||
Fair value of liabilities assumed | 9.5 | ||||||
Less fair value of assets acquired: | |||||||
Inventory | 28.7 | ||||||
Property and equipment | 0.2 | ||||||
Identifiable intangibles | 239.7 | ||||||
Other assets | 13.5 | ||||||
Fair value of assets acquired | 282.1 | ||||||
Goodwill | $ 85.6 | ||||||
Foroni Acquisition | |||||||
Calculation of Goodwill: | |||||||
Purchase price, net of working capital adjustment | $ 41.5 | ||||||
Net purchase price | 41.5 | ||||||
Plus fair value of liabilities assumed: | |||||||
Accounts payable and accrued liabilities | 13.9 | ||||||
Deferred tax liabilities | 5.4 | ||||||
Debt | 7.6 | ||||||
Lease liabilities | 5.3 | ||||||
Other non-current liabilities | 1.5 | ||||||
Fair value of liabilities assumed | 33.7 | ||||||
Less fair value of assets acquired: | |||||||
Accounts receivable | 17.5 | ||||||
Inventory | 12.5 | ||||||
Property and equipment | 8.8 | ||||||
Identifiable intangibles | 11.1 | ||||||
Deferred tax assets | 2.7 | ||||||
Right of use asset, leases | 5.3 | ||||||
Other assets | 3.6 | ||||||
Fair value of assets acquired | 61.5 | ||||||
Goodwill | $ 13.7 | ||||||
Cumberland Asset Acquisition | |||||||
Less fair value of assets acquired: | |||||||
Inventory | $ 2.8 | ||||||
Identifiable intangibles | 3.2 | ||||||
Fair value of assets acquired | $ 6 | ||||||
GOBA Acquisition | |||||||
Calculation of Goodwill: | |||||||
Purchase price, net of working capital adjustment | $ 39.1 | ||||||
Cash acquired | 1.9 | ||||||
Net purchase price | 37.2 | ||||||
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 | ||||||
Inventory | 7.1 | ||||||
Property 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 |
Acquisitions - (Power A -Unaudi
Acquisitions - (Power A -Unaudited Pro Forma Consolidated Results) (Details) - PowerA - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Net sales | $ 1,857.2 | $ 2,124 |
Net income | $ 76.9 | $ 120 |
Net income per common share (diluted) (in usd per share) | $ 0.80 | $ 1.19 |
Selling, General and Administrative Expenses [Member] | ||
Business Acquisition [Line Items] | ||
Transaction costs | $ 3.7 |
Acquisitions (Foroni Narrative)
Acquisitions (Foroni Narrative) (Details) R$ in Millions, $ in Millions | Aug. 01, 2019USD ($) | Aug. 01, 2019BRL (R$) | Jul. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 827.4 | $ 718.6 | $ 708.9 | |||
Foroni Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business | R$ | R$ 157.2 | |||||
Purchase price, net of working capital adjustment | $ 41.5 | |||||
Debt | 7.6 | |||||
Business acquisition, consideration held in escrow | 6.6 | R$ 25.0 | ||||
Net sales | $ 16.7 | |||||
Goodwill | $ 13.7 | |||||
Transaction costs | $ 1.3 | |||||
Maximum | Foroni Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Escrow period | 6 years | 6 years |
Acquisitions (Cumberland Narrat
Acquisitions (Cumberland Narrative) (Details) - Cumberland Asset Acquisition $ in Millions, $ in Millions | Jan. 31, 2019USD ($) | Jan. 31, 2019AUD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||
Payments to acquire business | $ 6 | $ 8.2 | |
SG&A Expenses | |||
Business Acquisition [Line Items] | |||
Transaction costs | $ 0.1 |
Acquisitions (GOBA Narrative) (
Acquisitions (GOBA Narrative) (Details) $ in Millions, $ in Millions | Jul. 02, 2018USD ($) | Jul. 02, 2018MXN ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Combinations [Abstract] | ||||||
Goodwill | $ 827.4 | $ 718.6 | $ 708.9 | |||
Business Acquisition [Line Items] | ||||||
Cost of acquisitions, net of cash acquired | $ 339.4 | $ 41.3 | 38 | |||
GOBA Acquisition | ||||||
Business Combinations [Abstract] | ||||||
Goodwill | $ 2.7 | |||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business | 39.9 | $ 796.8 | ||||
Reduction to Purchase Price - Due to Working Capital Adjustments | (0.8) | |||||
Business acquisition, consideration held in escrow | $ 5.8 | $ 115 | ||||
Escrow period | 5 years | 5 years | ||||
Cash acquired | $ 1.9 | |||||
Purchase price, net of working capital adjustment | 39.1 | |||||
Cost of acquisitions, net of cash acquired | $ 37.2 | |||||
Net sales | $ 23.7 | |||||
SG&A Expenses | GOBA Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs | $ 1.1 |
Long-term Debt and Short-term_3
Long-term Debt and Short-term Borrowings (Notes Payable and Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | May 23, 2019 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,136.6 | $ 816 | |
Current portion | 76.5 | 33.2 | |
Debt issuance costs, unamortized | 5.5 | 5.6 | |
Long-term debt, net | 1,054.6 | 777.2 | |
Other borrowings | |||
Debt Instrument [Line Items] | |||
Total debt | 5.7 | 3.8 | |
Senior Secured Notes | Euro Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.50% at December 31, 2020 and 1.50% at December 31, 2019) | |||
Debt Instrument [Line Items] | |||
Total debt | $ 287.4 | $ 275.9 | |
Interest rate | 2.50% | 1.50% | |
Senior Secured Notes | USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.44% at December 31, 2019) | |||
Debt Instrument [Line Items] | |||
Total debt | $ 92.5 | $ 97.5 | $ 100 |
Interest rate | 3.50% | 3.44% | |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.45% at December 31, 2019) | |||
Debt Instrument [Line Items] | |||
Total debt | $ 43.4 | $ 41.6 | |
Interest rate | 2.57% | 2.45% | |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.26% at December 31, 2019) | |||
Debt Instrument [Line Items] | |||
Total debt | $ 307.2 | $ 8.2 | |
Interest rate | 3.50% | 3.26% | |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due May 2024 (floating interest rate of 2.57% at December 31, 2020 and 2.44% at December 31, 2019) | |||
Debt Instrument [Line Items] | |||
Total debt | $ 25.4 | $ 14 | |
Interest rate | 2.57% | 2.44% | |
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% |
Long-term Debt and Short-term_4
Long-term Debt and Short-term Borrowings (Narrative) (Details) € in Millions, $ in Millions, $ in Millions | Sep. 30, 2023 | Nov. 10, 2020USD ($) | May 23, 2019USD ($) | Jul. 26, 2018USD ($) | Jan. 27, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 01, 2020USD ($) | Apr. 30, 2020 | May 22, 2019USD ($) | Jan. 27, 2017EUR (€) | Jan. 27, 2017AUD ($) |
Debt Instrument [Line Items] | |||||||||||||
Total debt | $ 1,136.6 | $ 816 | |||||||||||
Maximum Consolidated Leverage Ratio | 3.75 | ||||||||||||
Debt issuance costs | 3.2 | 3.4 | $ 0.6 | ||||||||||
Senior Secured Credit Facility Due January 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit agreement, term | 5 years | ||||||||||||
Senior Secured Notes | Euro Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit agreement, face amount | $ 320.8 | € 300 | |||||||||||
Senior Secured Notes | AUD Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Max borrowing capacity | 60.4 | $ 80 | |||||||||||
Senior Secured Notes | USD Senior Secured Term Loan A, due May 2024 (floating interest rate of 3.50% at December 31, 2020 and 3.44% at December 31, 2019) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt | $ 100 | 92.5 | 97.5 | ||||||||||
Senior Secured Notes | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 3.2 | ||||||||||||
Senior Secured Notes | Minimum | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Quarterly principal payment, based on annual percentage | 1.25% | ||||||||||||
Senior Secured Notes | Forecast | Maximum | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Quarterly principal payment, based on annual percentage | 2.50% | ||||||||||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt | 375 | $ 375 | |||||||||||
Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Consolidated Leverage Ratio | 2.50 | ||||||||||||
Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed charge coverage ratio | 1.25 | ||||||||||||
Revolving Facility | Senior Secured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Max borrowing capacity | 400 | ||||||||||||
Revolving Facility | Senior Secured Notes | Senior Secured Credit Facility Due January 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Max borrowing capacity | $ 500 | $ 500 | |||||||||||
Credit facility, increase | $ 100 | ||||||||||||
Revolving Facility | Senior Secured Notes | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Max borrowing capacity | $ 600 | ||||||||||||
Total debt | 332.6 | ||||||||||||
Amount available for borrowings under the Restated Revolver Facility | 256.8 | ||||||||||||
Letters of credit outstanding, amount | $ 10.6 | ||||||||||||
Commitment fee percent | 0.50% | ||||||||||||
Revolving Facility | Senior Secured Notes | Minimum | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percent | 0.20% | ||||||||||||
Revolving Facility | Senior Secured Notes | Maximum | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percent | 0.50% | ||||||||||||
Revolving Facility | Senior Secured Notes | Euro Floor | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base rate percent | 0.00% | ||||||||||||
Revolving Facility | Senior Secured Notes | U.S. Floor | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base rate percent | 1.00% | ||||||||||||
Senior Secured Credit Facility Due May 2024 | Senior Secured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Coverage Ratio | 5.44 | ||||||||||||
Consolidated Leverage Ratio | 3.25 | ||||||||||||
Maximum Consolidated Leverage Ratio | 4.75 | 4.75 | |||||||||||
Maximum Consolidated Leverage Ratio, decrease | 3.75 | ||||||||||||
Facility paydown when cash and cash equivalents exceed, amount | $ 100 | ||||||||||||
Amended maximum Consolidated Leverage Ratio | 0.50 | ||||||||||||
Leverage ratio | 4.30 | ||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||
Dividends and/or purchase shares, threshold | $ 30 | ||||||||||||
Dividends and/or purchase shares, threshold, percent of total assets | 1.00% | ||||||||||||
Minimum leverage ratio for payment of dividends or repurchase of shares | 3.25 | ||||||||||||
Consolidated Leverage Ratio, greater than | 3.75 | ||||||||||||
Maximum borrowing capacity, potential increase | $ 500 | ||||||||||||
Senior Secured Credit Facility Due May 2024 | Senior Secured Notes | Senior Secured Credit Facility Due May 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Consolidated Leverage Ratio | 3.25 | ||||||||||||
Senior Secured Credit Facility Due May 2024 | Senior Secured Notes | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Coverage Ratio | 3 | 3 | |||||||||||
Senior Secured Credit Facility Due May 2024 | Senior Secured Notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Dividends and/or purchase shares, threshold | $ 75 |
Long-term Debt and Short-term_5
Long-term Debt and Short-term Borrowings (Interest Rates) (Details) - Secured Debt - Senior Secured Credit Facility Due May 2024 | Nov. 10, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | |
> 4.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.50% | |
> 4.25 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.75% | |
> 4.25 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% | |
≤ 4.25 to 1.00 and > 4.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.50% | |
≤ 4.25 to 1.00 and > 4.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | |
≤ 4.25 to 1.00 and > 4.00 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.38% | |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.25% | |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
≤ 3.50 to 1.00 and > 3.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.38% | |
≤ 3.50 to 1.00 and > 3.25 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.00% | |
≤ 3.50 to 1.00 and > 3.25 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
≤ 3.25 to 1.00 and > 3.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.30% | |
≤ 3.25 to 1.00 and > 3.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% | |
≤ 3.25 to 1.00 and > 3.00 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.75% | |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.25% | |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
≤ 2.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Undrawn Fee | 0.20% | |
≤ 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
≤ 2.00 to 1.00 | Applicable Rate on Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.25% |
Long-term Debt and Short-term_6
Long-term Debt and Short-term Borrowings (Amended Maximum Consolidated Leverage Ratio) (Details) - Senior Secured Credit Facility Due May 2024 - Secured Debt | Nov. 10, 2020 |
March 2021 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 5.25 |
June 2021 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 5.25 |
September 2021 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.75 |
December 2021 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.25 |
March 2022 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.25 |
June 2022 | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.25 |
September 2022 and thereafter | |
Line of Credit Facility [Line Items] | |
Maximum Consolidated Leverage Ratio | 3.75 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 28.3 | $ 29.6 | |
Sublease income | (1.2) | (1.7) | |
Lease, Cost | $ 27.1 | $ 27.9 | $ 33 |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 28.8 | $ 29.6 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 9 | $ 35.5 |
Weighted average remaining lease term, operating leases (in years) | 6 years 4 months 24 days | |
Weighted average discount rate, operating leases (as a percentage) | 5.20% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 28.6 |
2022 | 21.1 |
2023 | 16.3 |
2024 | 13.2 |
2025 | 9.8 |
Thereafter | 32 |
Total minimum lease payments | 121 |
Less imputed interest | 21.9 |
Future minimum payments for leases, net of sublease rental income and imputed interest | $ 99.1 |
Pension and Other Retiree Ben_3
Pension and Other Retiree Benefits (Pension Benefit Obligation and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets | |||
Employer contributions | $ 19.5 | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Pension and post-retirement benefit obligations | 317.1 | $ 283.2 | |
Pension | U.S. | |||
Change in projected benefit obligation (PBO) | |||
Projected benefit obligation at beginning of year | 211.6 | 188.3 | |
Service cost | 1.6 | 1.3 | $ 1.6 |
Interest cost | 5.9 | 7.4 | 6.7 |
Actuarial loss (gain) | 17.9 | 25.2 | |
Participants’ contributions | 0 | 0 | |
Benefits paid | (10.9) | (10.6) | |
Settlement | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Projected benefit obligation at end of year | 226.1 | 211.6 | 188.3 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 158 | 141.1 | |
Actual return on plan assets | 18.6 | 21.9 | |
Employer contributions | 4.9 | 5.6 | |
Participants’ contributions | 0 | 0 | |
Benefits paid | (10.9) | (10.6) | |
Settlement | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 170.6 | 158 | 141.1 |
Funded status (Fair value of plan assets less PBO) | (55.5) | (53.6) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Other non-current assets | 0 | 0 | |
Other current liabilities | 0 | 0 | |
Pension and post-retirement benefit obligations | 55.5 | 53.6 | |
Components of accumulated other comprehensive income, net of tax: | |||
Unrecognized actuarial loss (gain) | 110 | 74.1 | |
Unrecognized prior service cost (credit) | 1.5 | 1.4 | |
Pension | International | |||
Change in projected benefit obligation (PBO) | |||
Projected benefit obligation at beginning of year | 690.7 | 627.3 | |
Service cost | 1.5 | 1.3 | 1.9 |
Interest cost | 9.7 | 13.4 | 12.9 |
Actuarial loss (gain) | 60.7 | 67.6 | |
Participants’ contributions | 0.1 | 0.1 | |
Benefits paid | (27.6) | (28.6) | |
Settlement | (27.4) | (0.4) | |
Foreign exchange rate changes | 41 | 10 | |
Projected benefit obligation at end of year | 748.7 | 690.7 | 627.3 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 460.3 | 417.6 | |
Actual return on plan assets | 45 | 45.5 | |
Employer contributions | 14.2 | 14.1 | |
Participants’ contributions | 0.1 | 0.1 | |
Benefits paid | (27.6) | (28.7) | |
Settlement | (27.4) | (0.4) | |
Foreign exchange rate changes | 20.2 | 12.1 | |
Fair value of plan assets at end of year | 484.8 | 460.3 | 417.6 |
Funded status (Fair value of plan assets less PBO) | (263.9) | (230.4) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Other non-current assets | 0.6 | 1.2 | |
Other current liabilities | 7.5 | 6.8 | |
Pension and post-retirement benefit obligations | 257 | 224.8 | |
Components of accumulated other comprehensive income, net of tax: | |||
Unrecognized actuarial loss (gain) | 208.3 | 129.8 | |
Unrecognized prior service cost (credit) | 6.4 | 4.9 | |
Post-retirement | |||
Change in projected benefit obligation (PBO) | |||
Projected benefit obligation at beginning of year | 5.3 | 6.2 | |
Service cost | 0 | 0 | 0.1 |
Interest cost | 0.1 | 0.2 | 0.2 |
Actuarial loss (gain) | 0 | (0.9) | |
Participants’ contributions | 0.1 | 0.1 | |
Benefits paid | (0.5) | (0.4) | |
Settlement | 0 | 0 | |
Foreign exchange rate changes | 0.1 | 0.1 | |
Projected benefit obligation at end of year | 5.1 | 5.3 | 6.2 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.4 | 0.3 | |
Participants’ contributions | 0.1 | 0.1 | |
Benefits paid | (0.5) | (0.4) | |
Settlement | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status (Fair value of plan assets less PBO) | (5.1) | (5.3) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Other non-current assets | 0 | 0 | |
Other current liabilities | 0.5 | 0.5 | |
Pension and post-retirement benefit obligations | 4.6 | 4.8 | |
Components of accumulated other comprehensive income, net of tax: | |||
Unrecognized actuarial loss (gain) | (4.4) | (4) | |
Unrecognized prior service cost (credit) | $ (0.1) | $ (0.2) |
Pension and Other Retiree Ben_4
Pension and Other Retiree Benefits (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 226.1 | $ 211.6 |
Fair value of plan assets | 170.6 | 158 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 716 | 638.4 |
Fair value of plan assets | $ 463.7 | $ 417.5 |
Pension and Other Retiree Ben_5
Pension and Other Retiree Benefits (Projected Benefit Obligations in Excess of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 226.1 | $ 211.6 |
Fair value of plan assets | 170.6 | 158 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 728.3 | 649.1 |
Fair value of plan assets | $ 463.7 | $ 417.5 |
Pension and Other Retiree Ben_6
Pension and Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Pension | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.6 | $ 1.3 | $ 1.6 | |
Interest cost | 5.9 | 7.4 | 6.7 | |
Expected return on plan assets | (11.4) | (11.7) | (11.8) | |
Amortization of net loss (gain) | 3.2 | 2.2 | 2.7 | |
Amortization of prior service cost (credit) | 0.4 | 0.4 | 0.4 | |
Curtailment gain | 0 | 0 | 0 | |
Settlement loss | 0 | 0 | 0 | |
Net periodic benefit income(1) | [1] | (0.3) | (0.4) | (0.4) |
Pension | International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.5 | 1.3 | 1.9 | |
Interest cost | 9.7 | 13.4 | 12.9 | |
Expected return on plan assets | (18.6) | (20.5) | (22.7) | |
Amortization of net loss (gain) | 4.9 | 3.3 | 3.4 | |
Amortization of prior service cost (credit) | 0.3 | 0.3 | 0 | |
Curtailment gain | 0 | 0 | (0.6) | |
Settlement loss | 0.4 | 0.1 | 0 | |
Net periodic benefit income(1) | [1] | (1.8) | (2.1) | (5.1) |
Post-retirement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0.1 | |
Interest cost | 0.1 | 0.2 | 0.2 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of net loss (gain) | (0.5) | (0.4) | (0.4) | |
Amortization of prior service cost (credit) | 0 | 0 | (0.1) | |
Curtailment gain | 0 | 0 | 0 | |
Settlement loss | 0 | 0 | 0 | |
Net periodic benefit income(1) | [1] | $ (0.4) | $ (0.2) | $ (0.2) |
[1] | (1) The components, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income. |
Pension and Other Retiree Ben_7
Pension and Other Retiree Benefits (Other Changes Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 10.6 | $ 15 | $ 12 |
Amortization of actuarial (loss) gain | (3.2) | (2.2) | (2.7) |
Current year prior service cost | 0 | 0 | 0 |
Amortization of prior service (cost) credit | (0.4) | (0.4) | (0.4) |
Foreign exchange rate changes | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 7 | 12.4 | 8.9 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | 6.7 | 12 | 8.5 |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 36.5 | 43.3 | 5.3 |
Amortization of actuarial (loss) gain | (5.3) | (3.3) | (3.4) |
Current year prior service cost | 0 | 0 | 6.5 |
Amortization of prior service (cost) credit | (0.3) | (0.3) | 0.3 |
Foreign exchange rate changes | 8.5 | 3.4 | (7.1) |
Total recognized in other comprehensive income (loss) | 39.4 | 43.1 | 1.6 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | 37.6 | 41 | (3.5) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 0 | (1) | (0.3) |
Amortization of actuarial (loss) gain | 0.5 | 0.4 | 0.4 |
Current year prior service cost | 0 | 0 | 0 |
Amortization of prior service (cost) credit | 0 | 0 | 0.1 |
Foreign exchange rate changes | 0 | 0 | 0.1 |
Total recognized in other comprehensive income (loss) | 0.5 | (0.6) | 0.3 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | $ 0.1 | $ (0.8) | $ 0.1 |
Pension and Other Retiree Ben_8
Pension and Other Retiree Benefits (Weighted Average Assumptions Used in Calculating Benefit Obligation) (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.60% | 3.30% | 4.60% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.20% | 1.80% | 2.50% |
Rate of compensation increase | 2.90% | 2.90% | 3.00% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.90% | 2.70% | 3.70% |
Pension and Other Retiree Ben_9
Pension and Other Retiree Benefits (Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.20% | 4.00% | 3.50% |
Expected long-term rate of return | 7.00% | 7.40% | 7.40% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.60% | 2.40% | 2.10% |
Expected long-term rate of return | 4.20% | 5.00% | 5.00% |
Rate of compensation increase | 2.90% | 3.00% | 2.80% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.70% | 3.60% | 3.20% |
Pension and Other Retiree Be_10
Pension and Other Retiree Benefits (Assumed Health Care Cost Trend Rates) (Details) - Post-retirement | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 6.00% | 7.00% | 7.00% |
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.00% | 4.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2028 | 2027 | 2026 |
Pension and Other Retiree Be_11
Pension and Other Retiree Benefits (Weighted Average Asset Allocation) (Details) - Pension | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100.00% | 100.00% | |
U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 64.00% | 56.00% | |
U.S. | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 29.00% | 33.00% | |
U.S. | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 6.00% | 3.00% | |
U.S. | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 1.00% | 8.00% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100.00% | 100.00% | |
International | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 21.00% | 13.00% | |
International | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 54.00% | 46.00% | |
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 4.00% | 3.00% | |
International | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 21.00% | 38.00% |
[1] | Multi-strategy hedge funds, insurance contracts and cash and cash equivalents for certain of our plans. |
Pension and Other Retiree Be_12
Pension and Other Retiree Benefits (Fair Value of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 170.6 | $ 158 | $ 141.1 |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 169.4 | 151.6 | |
U.S. | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.2 | 1.5 | |
U.S. | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 94.8 | 103.2 | |
U.S. | Mutual Funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Mutual Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Mutual Funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 94.8 | 103.2 | |
U.S. | Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 74.6 | 48.4 | |
U.S. | Exchange traded funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Exchange traded funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Exchange traded funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 74.6 | 48.4 | |
U.S. | Common collective trust | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Common collective trust | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.2 | 1.5 | |
U.S. | Common collective trust | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Common collective trust | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.2 | 1.5 | |
U.S. | Multi-strategy hedge funds | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4.9 | ||
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 484.8 | 460.3 | $ 417.6 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 108.9 | 61.7 | |
International | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 338.1 | 331.2 | |
International | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 8.5 | 1.4 | |
International | Cash and cash equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 8.5 | 1.4 | |
International | Equity Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 99.9 | 59.9 | |
International | Equity Funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Equity Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Equity Funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 99.9 | 59.9 | |
International | Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.5 | 0.4 | |
International | Exchange traded funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Exchange traded funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Exchange traded funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.5 | 0.4 | |
International | Foreign corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign corporate debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 85.6 | 79.3 | |
International | Foreign corporate debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign corporate debt securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 85.6 | 79.3 | |
International | Multi-strategy hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Multi-strategy hedge funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 57.8 | 85.9 | |
International | Multi-strategy hedge funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Multi-strategy hedge funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 57.8 | 85.9 | |
International | Multi-strategy hedge funds | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 29.8 | 57 | |
International | Insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Insurance contracts | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4.1 | 29.6 | |
International | Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Insurance contracts | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4.1 | 29.6 | |
International | Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Real estate | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 9.7 | 3.9 | |
International | Real estate | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Real estate | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 9.7 | 3.9 | |
International | Foreign government debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign government debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 180.9 | 132.5 | |
International | Foreign government debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign government debt securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 180.9 | 132.5 | |
International | Real estate | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 8 | $ 10.4 |
Pension and Other Retiree Be_13
Pension and Other Retiree Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 41.4 |
2022 | 41.8 |
2023 | 42.4 |
2024 | 42.8 |
2025 | 43.8 |
Years 2026 - 2030 | 223.5 |
Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 0.5 |
2022 | 0.4 |
2023 | 0.4 |
2024 | 0.4 |
2025 | 0.4 |
Years 2026 - 2030 | $ 1.7 |
Pension and Other Retiree Be_14
Pension and Other Retiree Benefits (Multi-Employer) (Details) - Pension - PACE Industry Union-Management Pension Fund - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans [Line Items] | |||
Minimum Period in Years for Withdrawal Liability | 20 years | ||
Multiemployer Plans, Period Contributions, Significance of Contributions [true false] | false | ||
Multiemployer Plan, Pension, Significant, Certified Zone Status, Date | Dec. 31, 2020 | Dec. 31, 2019 | |
Multiemployer Plan, Pension, Significant, Certified Zone Status [Fixed List] | Red | Red | |
FIP/RP Status | Implemented | ||
Multiemployer Plan, Pension, Significant, Employer Contribution, Cost | $ 0.1 | $ 0.2 | $ 0.3 |
Surcharge Imposed | Yes | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Jun. 30, 2023 |
Pension and Other Retiree Be_15
Pension and Other Retiree Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)yr | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of post-retirement plans not frozen to new participants | 1 | ||
Pension and post-retirement benefit obligations | $ 317.1 | $ 283.2 | |
Employer contributions | 19.5 | ||
Expected contributions to defined benefit plans for 2021 | 25 | ||
Costs related to defined contribution plans | 6.8 | 12.4 | $ 13.3 |
Esselte Leitz Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded Pension Plan liability | $ 167.9 | 151.5 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment of retirement benefits, commencement age for participants | yr | 60 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment of retirement benefits, commencement age for participants | yr | 65 | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 962.6 | 891.3 | |
Pension Plan | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and post-retirement benefit obligations | 55.5 | 53.6 | |
Employer contributions | $ 4.9 | $ 5.6 | |
Weighted average asset allocations | 100.00% | 100.00% | |
Pension Plan | U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 64.00% | 56.00% | |
Pension Plan | U.S. | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 29.00% | 33.00% | |
Pension Plan | U.S. | Alternate assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 7.00% |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-Based Compensation Expense by Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (6.5) | $ (10.1) | $ (8.8) |
Share-based Payment Arrangement, Expense, Tax Benefit | (1.6) | (2.4) | (2.2) |
Share-based Payment Arrangement, Expense, after Tax | (4.9) | (7.7) | (6.6) |
SG&A Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (6.5) | $ (10.1) | $ (8.8) |
Stock-Based Compensation (Sha_2
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 6.5 | $ 10.1 | $ 8.8 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.7 | 2.7 | 2 |
RSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5.2 | 5.1 | 4.7 |
PSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (1.4) | $ 2.3 | $ 2.1 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 3.3 |
Weighted average years expense to be recognized over | 1 year 8 months 12 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 5.7 |
Weighted average years expense to be recognized over | 1 year 9 months 18 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 0 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions) (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected lives | 6 years | 4 years 7 months 6 days | 4 years 9 months 18 days |
Weighted average risk-free interest rate | 0.81% | 2.49% | 2.62% |
Weighted average expected volatility | 36.00% | 36.10% | 36.40% |
Expected dividend yield | 3.16% | 2.65% | 1.87% |
Weighted average grant date fair value | $ 2.03 | $ 2.40 | $ 3.76 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - Stock options $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number Outstanding [Roll Forward] | |
Outstanding at December 31, 2019 | shares | 4,417,693 |
Granted | shares | 1,437,188 |
Exercised | shares | (683,718) |
Forfeited | shares | (208,278) |
Outstanding at December 31, 2020 | shares | 4,962,885 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2019 | $ / shares | $ 9.32 |
Granted | $ / shares | 8.25 |
Exercised | $ / shares | 6.49 |
Forfeited | $ / shares | 9.43 |
Outstanding at December 31, 2020 | $ / shares | $ 9.40 |
Outstanding at December 31, 2020, Weighted Average Remaining Contractual Term | 5 years |
Outstanding at December 31, 2020, Aggregate Intrinsic Value | $ | $ 1.7 |
Exercisable shares at December 31, 2020 | shares | 2,564,242 |
Exercisable shares at December 31, 2020, Weighted Average Exercise Price | $ / shares | $ 9.84 |
Exercisable shares at December 31, 2020, Weighted Average Contractual Term | 2 years 8 months 12 days |
Exercisable shares at December 31, 2020, Aggregate Intrinsic Value | $ | $ 1.4 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Units Rollforward) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
RSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2019 | 1,716,445 | |||
Granted | 724,319 | 679,601 | 465,378 | |
Vested and distributed | (323,818) | |||
Forfeited | (66,861) | |||
Outstanding at December 31, 2020 | 2,050,085 | 1,716,445 | ||
Vested and deferred RSUs related to deferred compensation for non-employee directors | [1] | 613,853 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2019, Weighted Average Grant Date Fair Value | $ 10.53 | |||
Granted, Weighted Average Grant Date Fair Value | 7.92 | $ 8.74 | $ 12.71 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 12.49 | |||
Forfeited, Weighted Average Grant Date Fair Value | 10.20 | |||
Outstanding at December 31, 2020, Weighted Average Grant Date Fair Value | 9.31 | $ 10.53 | ||
Weighted Average Grant Date Fair Value of Vested and Deferred RSUs | $ 8.82 | |||
PSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2019 | 1,021,543 | |||
Granted | 939,529 | 895,389 | 747,996 | |
Vested and distributed | (377,073) | (1,059,825) | (1,327,613) | |
Forfeited | (67,145) | |||
Other - decrease due to performance of PSUs | (1,516,854) | |||
Outstanding at December 31, 2020 | 0 | 1,021,543 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2019, Weighted Average Grant Date Fair Value | $ 9.98 | |||
Granted, Weighted Average Grant Date Fair Value | 8.25 | $ 8.35 | $ 12.82 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 12.75 | |||
Forfeited, Weighted Average Grant Date Fair Value | 8.56 | |||
Other decrease due to performance of PSU's, Weighted Average Grant Date Fair Value | 8.28 | |||
Outstanding at December 31, 2020, Weighted Average Grant Date Fair Value | $ 0 | $ 9.98 | ||
[1] | Included in outstanding at December 31, 2020. Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 11,775,000 | ||
Capitalization of stock based compensation expense | $ 0 | ||
Proceeds from stock options exercised | 4.4 | $ 4.2 | $ 6.8 |
Share-based compensation expense, shares that vests on grant date | $ 6.5 | $ 10.1 | 8.8 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,962,885 | 4,417,693 | |
Exercise period | 10 years | 7 years | |
Award vesting period | 3 years | ||
Proceeds from stock options exercised | $ 4.4 | $ 4.2 | 6.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1.6 | 1 | 4.1 |
Fair value of options vested during the period | 2.7 | 1.9 | 2.3 |
Unrecognized compensation expense | $ 3.3 | ||
Weighted average years expense to be recognized over | 1 year 8 months 12 days | ||
Share-based compensation expense, shares that vests on grant date | $ 2.7 | 2.7 | 2 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Unrecognized compensation expense | $ 5.7 | ||
Weighted average years expense to be recognized over | 1 year 9 months 18 days | ||
Share-based compensation expense, shares that vests on grant date | $ 5.2 | $ 5.1 | $ 4.7 |
Shares outstanding | 2,050,085 | 1,716,445 | |
Weighted average grant date fair value | $ 7.92 | $ 8.74 | $ 12.71 |
Fair value of stock awards vested | $ 4.7 | $ 3.6 | $ 4.7 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 0 | ||
Share-based compensation expense, shares that vests on grant date | $ (1.4) | $ 2.3 | $ 2.1 |
Shares outstanding | 0 | 1,021,543 | |
Weighted average grant date fair value | $ 8.25 | $ 8.35 | $ 12.82 |
Fair value of stock awards vested | $ 4.8 | $ 8.1 | $ 10 |
Share-based Compensation, Equity Instruments Other than Options, Shares Called upon Vested | 1 | ||
Minimum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage awarded | 0.00% | ||
Maximum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Percentage awarded | 200.00% | ||
Fully Vested On The Grant Date | RSUs | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, shares that vests on grant date | $ 0.9 | $ 1.1 | $ 1.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 36.8 | $ 44.4 |
Work in process | 3.5 | 3.5 |
Finished goods | 264.8 | 235.4 |
Total inventories | $ 305.1 | $ 283.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 657.8 | $ 651.7 | ||
Less: accumulated depreciation | (416.4) | (384.6) | ||
Property, plant and equipment, net | [1] | 241.4 | 267.1 | |
Computer software included in net property, plant and equipment | 65.8 | 68.5 | ||
Amortization of software costs | 11.4 | 8.9 | $ 8.2 | |
Land and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 23.2 | 24 | ||
Building and improvements to leaseholds | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 145.9 | 145 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 480.4 | 475.1 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 8.3 | $ 7.6 | ||
[1] | Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | ||
Goodwill [Roll Forward] | |||||
Beginning balance | $ 718.6 | $ 708.9 | |||
Acquisitions | 89.5 | 10.1 | [1] | ||
Foreign currency translation | 19.3 | (0.4) | |||
Ending balance | 827.4 | 718.6 | |||
Accumulated impairment losses | $ 215.1 | ||||
Goodwill impairment loss | $ 0 | ||||
ACCO Brands North America | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 375.6 | 375.6 | |||
Acquisitions | 85.6 | 0 | |||
Foreign currency translation | 0 | 0 | |||
Ending balance | 461.2 | 375.6 | |||
ACCO Brands EMEA | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 165.7 | 165.6 | |||
Acquisitions | 0 | 0 | |||
Foreign currency translation | 22.5 | 0.1 | |||
Ending balance | 188.2 | 165.7 | |||
ACCO Brands International | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 177.3 | 167.7 | |||
Acquisitions | 3.9 | 10.1 | [1] | ||
Foreign currency translation | (3.2) | (0.5) | |||
Ending balance | $ 178 | $ 177.3 | |||
[1] | (1) Goodwill has been recorded on our Consolidated Balance Sheet related to the PowerA Acquisition and represents the excess of the cost of the PowerA Acquisition when compared to the fair value estimate of the net assets acquired on December 17, 2020 (the date of the PowerA Acquisition). Goodwill has been recorded on our Consolidated Balance Sheet related to the Foroni Acquisition and represents the excess of the cost of the Foroni Acquisition when compared to the fair value estimate of the net assets acquired on August 1, 2019 (the effective date of the Foroni Acquisition). Goodwill has been recorded on our Consolidated Balance Sheet related to the GOBA Acquisition and represents the excess of the cost of the GOBA Acquisition when compared to the fair value estimate of the net assets acquired on July 2, 2018 (the date of the GOBA Acquisition). See "Note 3. Acquisitions" for details on the calculation of the goodwill acquired in the acquisitions. |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangibles (Identifiable Intangibles) (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of indefinite-lived intangible assets | $ 0 | |
Trade names | Cumberland Asset Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 10 years | |
Customer relationships | Cumberland Asset Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 7 years |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangibles (Acquired Identifiable Intangibles) (Details) - USD ($) $ in Millions | Aug. 01, 2019 | Jan. 31, 2019 | Jul. 02, 2018 | Dec. 31, 2020 | Dec. 17, 2020 |
Cumberland Asset Acquisition | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 3.2 | ||||
Cumberland Asset Acquisition | Trade names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets acquired | $ 0.8 | ||||
Intangible assets, useful life | 10 years | ||||
Cumberland Asset Acquisition | Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets acquired | $ 2.4 | ||||
Intangible assets, useful life | 7 years | ||||
Foroni Acquisition | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 11.1 | ||||
Foroni Acquisition | Trade names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 11.1 | ||||
Intangible assets, useful life | 23 years | ||||
GOBA Acquisition | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 10.3 | ||||
GOBA Acquisition | Trade names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets acquired | $ 3.8 | ||||
Intangible assets, useful life | 15 years | ||||
GOBA Acquisition | Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets acquired | $ 6.5 | ||||
Intangible assets, useful life | 10 years | ||||
PowerA | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 239.7 | ||||
PowerA | Trade names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | 21.6 | ||||
Intangible assets, useful life | 15 years | ||||
PowerA | Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | 127.6 | ||||
Intangible assets, useful life | 15 years | ||||
PowerA | Vendor Relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | 87.7 | ||||
Intangible assets, useful life | 15 years | ||||
PowerA | Developed Technology Rights | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangibles acquired | $ 2.8 | ||||
Intangible assets, useful life | 5 years |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangibles (Gross Carrying Amount and Accumulated Amortization) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortizable intangible assets: | |||
Amortizable intangible assets, gross | $ 816.9 | $ 563.2 | |
Amortizable intangible assets, accumulated amortization | (262.9) | (227.4) | |
Amortizable intangible assets, net book value | 554 | 335.8 | |
Total identifiable intangible assets, gross | 1,284.4 | 1,030.5 | |
Total identifiable intangibles, accumulated amortization | (307.4) | (271.9) | |
Total identifiable intangibles, net book value | 977 | 758.6 | |
Trade names | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, gross | 343.5 | 316.7 | |
Amortizable intangible assets, accumulated amortization | (97.7) | (83.7) | |
Amortizable intangible assets, net book value | 245.8 | 233 | |
Customer relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, gross | 376.8 | 241 | |
Amortizable intangible assets, accumulated amortization | (162.9) | (142.3) | |
Amortizable intangible assets, net book value | 213.9 | 98.7 | |
Vendor Relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, gross | 87.7 | 0 | |
Amortizable intangible assets, accumulated amortization | (0.2) | 0 | |
Amortizable intangible assets, net book value | 87.5 | 0 | |
Patents | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, gross | 8.9 | 5.5 | |
Amortizable intangible assets, accumulated amortization | (2.1) | (1.4) | |
Amortizable intangible assets, net book value | 6.8 | 4.1 | |
Trade names | |||
Indefinite-lived intangible assets: | |||
Indefinite-lived intangible assets, gross | 467.5 | 467.3 | |
Indefinite-lived intangible assets, accumulated amortization | [1] | (44.5) | (44.5) |
Indefinite-lived intangible assets, net book value | $ 423 | $ 422.8 | |
[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_7
Goodwill and Identifiable Intangibles (Amortization Expense and Estimated Future Amortization) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangibles | $ 32.8 | $ 35.4 | $ 36.7 | |
Estimate Amortization Expense | ||||
Estimated amortization expense, 2021 | [1] | 46.3 | ||
Estimated amortization expense, 2022 | [1] | 42.6 | ||
Estimated amortization expense, 2023 | [1] | 40.2 | ||
Estimated amortization expense, 2024 | [1] | 38.5 | ||
Estimated amortization expense, 2025 | [1] | $ 36.8 | ||
Number of reporting units | segment | 3 | |||
[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. |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 11.8 | $ 9.7 | $ 13.3 | |
Provision | 10.9 | 12 | 11.7 | |
Cash expenditures | (12.3) | (9.9) | (14.7) | |
Non-cash Items/ Currency Change | (1.1) | 0 | (0.6) | |
Balance at end of period | 9.3 | 11.8 | 9.7 | |
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 10.7 | 7.9 | 12 | |
Provision | 8.5 | 10.9 | 8.3 | |
Cash expenditures | (11.1) | (8.1) | (12.1) | |
Non-cash Items/ Currency Change | 0 | 0 | (0.3) | |
Balance at end of period | $ 8.1 | [1] | 10.7 | 7.9 |
Period over which restructuring and related costs are to be paid | 12 months | |||
Termination of lease agreements | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0.6 | 1.8 | 0.8 | |
Provision | 1.5 | 0.5 | 3.2 | |
Cash expenditures | (0.7) | (1.7) | (2) | |
Non-cash Items/ Currency Change | (0.4) | 0 | (0.2) | |
Balance at end of period | $ 1 | [2] | 0.6 | 1.8 |
Period over which restructuring and related costs are to be paid | 12 months | |||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0.5 | 0 | 0.5 | |
Provision | 0.9 | 0.6 | 0.2 | |
Cash expenditures | (0.5) | (0.1) | (0.6) | |
Non-cash Items/ Currency Change | (0.7) | 0 | (0.1) | |
Balance at end of period | $ 0.2 | [3] | $ 0.5 | $ 0 |
Period over which restructuring and related costs are to be paid | 12 months | |||
[1] | (1) We expect the remaining $8.1 million employee termination costs to be substantially paid within the next twelve months. | |||
[2] | (2) We expect the remaining $1.0 million termination of lease costs to be substantially paid within the next twelve months. | |||
[3] | (3) We expect the remaining $0.2 million of other costs to be substantially paid in the next twelve months. |
Restructuring (Restructuring _2
Restructuring (Restructuring Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 10.9 | $ 12 | $ 11.7 |
Operating Segments | ACCO Brands North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7.6 | 5.6 | 6.2 |
Operating Segments | ACCO Brands EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.6 | 2.3 | 4.9 |
Operating Segments | ACCO Brands International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2.6 | 2.7 | 0.6 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.1 | 1.4 | 0 |
Employee termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8.5 | 10.9 | 8.3 |
Termination of lease agreements | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.5 | 0.5 | 3.2 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0.9 | $ 0.6 | $ 0.2 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 1.7 | $ 32 | $ 37 |
Foreign operations | 76.9 | 131.5 | 120.9 |
Income before income tax | $ 78.6 | $ 163.5 | $ 157.9 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Income tax at U.S. statutory rate; 21% | $ 16.5 | $ 34.3 | $ 33.2 | |
Effect of the U.S. Tax Act | 0 | 0 | 3.1 | |
Impact on final GILTI regulations for 2018 and 2019 | (2.7) | 0 | 0 | |
Statutory tax rate changes | (2) | 0 | 3.9 | |
State, local and other tax, net of federal benefit | 0.1 | 5.8 | 2.2 | |
Impact from foreign inclusions | 1.3 | 3.1 | 3.7 | |
U.S. effect of foreign dividends and withholding taxes | 1 | 2.1 | 2.2 | |
Foreign income taxed at a higher effective rate | 1.4 | 4.2 | 0.9 | |
Net Brazilian Tax Assessments impact | 1.5 | 6.5 | (4.4) | |
Increase in valuation allowance | 2.2 | 0.4 | 5.2 | |
Excess expense (benefit) from stock-based compensation | 0.9 | 0.2 | (2.5) | |
Other | (3.6) | 0.1 | 3.7 | |
Income tax expense | $ 16.6 | $ 56.7 | $ 51.2 | $ 24 |
Effective income tax rate | 21.10% | 34.70% | 32.40% |
Income Taxes (Components of I_2
Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense | ||||
Federal and other | $ (0.1) | $ 5.8 | $ 2.7 | |
Foreign | 24.3 | 42.2 | 25.8 | |
Total current income tax expense | 24.2 | 48 | 28.5 | |
Deferred expense (benefit) | ||||
Federal and other | (2) | 8.4 | 11.1 | |
Foreign | (5.6) | 0.3 | 11.6 | |
Total deferred income tax expense | (7.6) | 8.7 | 22.7 | |
Income tax expense | $ 16.6 | $ 56.7 | $ 51.2 | $ 24 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Compensation and benefits | $ 13.3 | $ 15.4 |
Pension | 60.1 | 52.7 |
Inventory | 10.2 | 10 |
Other reserves | 18.1 | 15.9 |
Accounts receivable | 7.5 | 5.8 |
Foreign tax credit carryforwards | 23.3 | 25.2 |
Net operating loss carryforwards | 103.1 | 90.9 |
Deferred Tax Assets, Other Tax Carryforwards | 9.3 | 6.2 |
Other | 5.7 | 4.4 |
Gross deferred income tax assets | 250.6 | 226.5 |
Valuation allowance | (55.4) | (51.6) |
Net deferred tax assets | 195.2 | 174.9 |
Deferred tax liabilities | ||
Depreciation | (19) | (18) |
Unremitted non-U.S. earnings accrual | (4.6) | (2) |
Identifiable intangibles | (199.9) | (209.1) |
Other | (5.8) | (4.3) |
Gross deferred tax liabilities | (229.3) | (233.4) |
Net deferred tax liabilities | $ (34.1) | $ (58.5) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 50.5 | $ 43.7 | $ 47.2 |
Additions for tax positions of prior years | 2.9 | 8.4 | 3.1 |
Additions for tax positions of current year | 0 | 1.5 | 1.5 |
Reductions for tax positions of prior years | (1.1) | (2.5) | (8.2) |
Acquisitions | 1.4 | 0 | 5.3 |
Decrease resulting from foreign currency translation | (8.6) | (0.6) | (5.2) |
Balance at end of year | $ 45.1 | $ 50.5 | $ 43.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2012USD ($) | |
Income Tax Examination [Line Items] | ||||||||
Deferred Tax Assets, Valuation Allowance | $ 55.4 | $ 51.6 | ||||||
Income tax expense | 16.6 | 56.7 | $ 51.2 | $ 24 | ||||
Income before income tax | $ 78.6 | $ 163.5 | $ 157.9 | |||||
Effective tax rate | 21.10% | 34.70% | 32.40% | |||||
Excess benefit from stock-based compensation | $ (0.9) | $ (0.2) | $ 2.5 | |||||
U.S. statutory rate | 21.00% | 35.00% | ||||||
Amended return expected benefit | 1.4 | 1.1 | ||||||
Transition toll tax and net benefit or revaluation of deferred tax assets and liabilities | 49,700,000 | |||||||
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | 3.1 | |||||||
Tax Cuts and Jobs Act, Transition Tax, Income Tax Expense | 0.3 | |||||||
Tax Cuts and Jobs Act, Effect on Executive Compensation, Income Tax Expense | 3.3 | |||||||
Tax Cuts and Jobs Act, Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions, Executive Compensation | 1.5 | |||||||
Tax Cuts and Jobs Act, Impairment of Deferred Tax Assets, Executive Compensation, Income Tax Expense | 1.8 | |||||||
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset - Pension, Income Tax Benefit | 0.5 | |||||||
Additions for tax positions of prior years | $ 2.9 | 8.4 | 3.1 | |||||
Deferred Federal Income Tax Expense (Benefit) - Undistributed Earnings of Foreign Subsidiaries | 4.6 | |||||||
Undistributed Earnings of Foreign Subsidiaries Not Permanently Reinvested | 328 | |||||||
Undistributed earnings of foreign subsidiaries | 219 | |||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 26.5 | |||||||
Unrecognized tax benefits | 45.1 | 50.5 | 43.7 | $ 47.2 | ||||
Foreign tax credit carryforwards | 23.3 | 25.2 | ||||||
Operating loss carryforwards, valuation allowance | 88.1 | |||||||
Minimum | ||||||||
Income Tax Examination [Line Items] | ||||||||
Reasonably possible change in unrecognized tax benefit | 3 | |||||||
Maximum | ||||||||
Income Tax Examination [Line Items] | ||||||||
Reasonably possible change in unrecognized tax benefit | 4 | |||||||
State and Local Jurisdiction | ||||||||
Income Tax Examination [Line Items] | ||||||||
Operating loss carryforwards | $ 14.9 | |||||||
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 | |||||||
Foreign Tax Authority | ||||||||
Income Tax Examination [Line Items] | ||||||||
Operating loss carryforwards | $ 430 | |||||||
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 | 2015 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||||||
Income Tax Examination [Line Items] | ||||||||
Income tax expense | $ 1.6 | |||||||
Penalty rate | 75.00% | |||||||
Potential penalty rate | 150.00% | |||||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes - Foreign, Amount | $ 5.6 | |||||||
Income tax examination, interest expense | $ 0.3 | $ 0.9 | 1.1 | |||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2016 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2007-2012 | ||||||||
Income Tax Examination [Line Items] | ||||||||
Unrecognized tax benefits | $ 44.5 | |||||||
Potential tax assessment, accrued reserve related to fair value of liabilities acquired | $ 43.3 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | ||||||||
Income Tax Examination [Line Items] | ||||||||
Additions for tax positions of prior years | $ 1.2 | $ 5.6 | ||||||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2016 | |||||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2015 | |||||||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2015 | |||||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2019 | |||||||
Domestic Tax Authority | ||||||||
Income Tax Examination [Line Items] | ||||||||
Federal General business credit carryforwards | $ 2.1 | |||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||||||
Income Tax Examination [Line Items] | ||||||||
Tax Cuts and Jobs Act, income tax benefit | (25.7) | |||||||
Foreign tax credit carryforwards | $ 14 | |||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2017 | |||||||
UNITED STATES | Pension | ||||||||
Income Tax Examination [Line Items] | ||||||||
Defined Benefit Plan Contributions By Employer, Additional Tax Deductible Contribution | $ 4.1 | |||||||
Other Noncurrent Liabilities | Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2010 [Member] | ||||||||
Income Tax Examination [Line Items] | ||||||||
Unrecognized tax benefits | $ 28.4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | |||
Common stock, shares, outstanding | 94,942,565 | 96,445,488 | 102,700,000 |
Repurchased and retired common stock | 2,690,292 | 7,849,154 | 5,993,959 |
Treasury Stock, Shares, Acquired | 200,000 | 500,000 | 600,000 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted-average number of common shares outstanding - basic | 94,900,000 | 99,500,000 | 104,800,000 |
Adjusted weighted average shares and assumed conversions - diluted | 96,100,000 | 101,000,000 | 107,000,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 7,100,000 | 4,700,000 | 4,000,000 |
Stock options | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 100,000 | 500,000 | 1,000,000 |
Restricted stock units | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 1,100,000 | 1,000,000 | 1,200,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 164.7 | $ 182.6 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 134.3 | $ 96.7 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 33.8 | $ 8 |
Derivative Liabilities | 38.3 | 9.5 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.1 | 0.4 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 5 | 0.9 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.6 | 7.6 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.2 | 8.6 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 32.1 | 0 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 32.1 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives not designated as hedging instruments | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (0.1) | $ 0.1 | $ 0.7 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (4.5) | 1 | 9.1 |
Cash Flow Hedging | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Reclassified from OCI (Effective Portion) | $ 0.5 | $ (4.2) | $ (6.4) |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value of total debt | $ 1,146.9 | $ 831.4 |
Forward currency contracts, assets | 33.8 | 8 |
Forward currency contracts, liabilities | $ 38.3 | $ 9.5 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Total debt | $ 1,136.6 | $ 816 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (505.7) | $ (461.7) |
Other comprehensive income (loss) before reclassifications, net of tax | (65.5) | (45.6) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 7 | 1.6 |
Ending Balance | (564.2) | (505.7) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (0.2) | 2.1 |
Other comprehensive income (loss) before reclassifications, net of tax | (3.2) | 0.6 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 0.3 | (2.9) |
Ending Balance | (3.1) | (0.2) |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (299.5) | (299.2) |
Other comprehensive income (loss) before reclassifications, net of tax | (19.3) | (0.3) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 0 | 0 |
Ending Balance | (318.8) | (299.5) |
Unrecognized Pension and Other Post-retirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (206) | (164.6) |
Other comprehensive income (loss) before reclassifications, net of tax | (43) | (45.9) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 6.7 | 4.5 |
Ending Balance | $ (242.3) | $ (206) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Cost of products sold | $ (1,162.8) | $ (1,322.2) | $ (1,313.4) | ||
Income tax (benefit) expense | (16.6) | (56.7) | (51.2) | $ (24) | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Net of tax | (7) | (1.6) | (0.1) | ||
Derivative Financial Instruments | Foreign exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Cost of products sold | (0.5) | 4.2 | 6.4 | ||
Income tax (benefit) expense | 0.2 | (1.3) | (1.8) | ||
Net of tax | (0.3) | 2.9 | 4.6 | ||
Unrecognized Pension and Other Post-retirement Benefit Costs | Reclassification out of Accumulated Other Comprehensive Income | |||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Amortization of actuarial loss included in net income | (8) | (5.2) | (5.1) | [1] | |
Amortization of prior service cost included in net income | (0.7) | (0.7) | (0.3) | [1] | |
Total before tax | (8.7) | (5.9) | (5.4) | ||
Income tax (benefit) expense | 2 | 1.4 | 0.7 | ||
Net of tax | $ (6.7) | $ (4.5) | $ (4.7) | ||
[1] | These AOCI components are included in the computation of net periodic benefit cost (income) 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Unearned revenue associated with outstanding contracts | $ 3 | $ 5.5 |
Revenue recognized | $ 4.8 |
Revenue Recognition (Unearned R
Revenue Recognition (Unearned Revenue) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Disaggregation of Revenue [Line Items] | |
Unearned revenue | $ 2.3 |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Disaggregation of Revenue [Line Items] | |
Unearned revenue | $ 0.7 |
Expected timing of satisfaction | 12 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,655.2 | $ 1,955.7 | $ 1,941.2 |
Product and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,604.3 | 1,892.9 | 1,878.2 |
Product and services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 50.9 | 62.8 | 63 |
ACCO Brands North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 822.1 | 966.8 | 940.7 |
ACCO Brands North America | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 725.3 | 847.9 | 819.7 |
ACCO Brands North America | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 96.8 | 118.9 | 121 |
ACCO Brands EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 523.9 | 569.3 | 605.2 |
ACCO Brands International | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 309.2 | 419.6 | 395.3 |
ACCO Brands International | Australia/N.Z. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 128.7 | 145.3 | 169.2 |
ACCO Brands International | Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 138.8 | 229.1 | 178 |
ACCO Brands International | Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 41.7 | $ 45.2 | $ 48.1 |
Information on Business Segme_3
Information on Business Segments (Net Sales by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 460.1 | $ 444.1 | $ 366.9 | $ 384.1 | $ 537.4 | $ 505.7 | $ 518.7 | $ 393.9 | $ 1,655.2 | $ 1,955.7 | $ 1,941.2 | ||||||||
ACCO Brands North America | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 822.1 | 966.8 | 940.7 | ||||||||||||||||
ACCO Brands EMEA | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 523.9 | 569.3 | 605.2 | ||||||||||||||||
ACCO Brands International | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 309.2 | $ 419.6 | $ 395.3 | ||||||||||||||||
[1] | Our recent acquisition of PowerA and previous acquisitions in Mexico and Brazil have increased the size of our seasonal businesses. As a result of the seasonal nature of the demand for our products, we have generated, and we expect to continue to generate, a significant percentage of our sales and profit during the second, third, and fourth quarters. However, our cash flow seasonality is almost all in the second half of the year, as the cash inflow in the first quarter is consumed in the second quarter as inventory. Our third and fourth quarter cash flow comes from completing the working capital cycle and collecting our accounts receivable. |
Information on Business Segme_4
Information on Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 42.2 | $ 34.3 | $ 18.5 | $ 17.4 | $ 68.1 | $ 48.8 | $ 61.4 | $ 17.9 | $ 112.4 | [1] | $ 196.2 | [1] | $ 187 | [1] | |
Interest expense | 38.8 | 43.2 | 41.2 | ||||||||||||
Interest income | (1) | (3.2) | (4.4) | ||||||||||||
Non-operating pension income | (5.6) | (5.5) | (9.3) | ||||||||||||
Other expense (income), net | 1.6 | (1.8) | 1.6 | ||||||||||||
Income before income tax | 78.6 | 163.5 | 157.9 | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | [1] | 150.2 | 238.1 | 225.2 | |||||||||||
Corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | (37.8) | (41.9) | (38.2) | ||||||||||||
Transaction costs | 3.7 | 1.6 | 0.5 | ||||||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 83 | 131 | 116.6 | ||||||||||||
ACCO Brands EMEA | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 51.6 | 58.6 | 59.4 | ||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 15.6 | $ 48.5 | $ 49.2 | ||||||||||||
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Information on Business Segme_5
Information on Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 3,048.7 | $ 2,788.6 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 939.3 | 1,045.4 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,108.1 | 1,742.3 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 1.3 | 0.9 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 401.4 | 403.4 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 265.8 | 257.9 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 272.1 | $ 384.1 |
[1] | Represents total assets, excluding goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. |
Information on Business Segme_6
Information on Business Segments (Identifiable Intangibles and Goodwill by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 3,048.7 | $ 2,788.6 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 2,743.6 | 2,522.7 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 303.8 | 265 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1.3 | 0.9 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1,476.3 | 1,165.1 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 710.4 | 670.9 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | $ 556.9 | $ 686.7 |
[1] | Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases. |
Information on Business Segme_7
Information on Business Segments (Capital Spend by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 15.3 | $ 32.8 | $ 34.1 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 9.3 | 21.7 | 24.3 |
ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 4 | 7 | 6.1 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 2 | $ 4.1 | $ 3.7 |
Information on Business Segme_8
Information on Business Segments (Depreciation Expense by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 37.9 | $ 34.9 | $ 34 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 19.6 | 17.3 | 15.9 |
ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 12.7 | 12.2 | 12.6 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 5.6 | $ 5.4 | $ 5.5 |
Information on Business Segme_9
Information on Business Segments (Property, Plant and Equipment by Geographic Region) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | [1] | $ 241.4 | $ 267.1 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 108.3 | 118.3 | |
ACCO Brands North America | U.S. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 107.1 | 116.6 | |
ACCO Brands North America | Canada | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 1.2 | 1.7 | |
ACCO Brands EMEA | EMEA | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 88.8 | 92.8 | |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 44.3 | 56 | |
ACCO Brands International | Australia/N.Z. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 12.3 | 12.1 | |
ACCO Brands International | Latin America | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 30.4 | 42.2 | |
ACCO Brands International | Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 1.6 | $ 1.7 | |
[1] | Net property, plant and equipment as of December 31, 2020 and 2019 contained $65.8 million and $68.5 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $11.4 million, $8.9 million and $8.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Information on Business Segm_10
Information on Business Segments (Narrative) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2020USD ($)customer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | 3 | 3 | ||||
Concentration risk, number of customers | customer | 5 | |||||
Sales Revenue, Net | Staples/Essendant | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk, sales | $ 200.2 | |||||
Concentration risk, percentage | 10.00% | |||||
Sales Revenue, Net | Top five customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk, sales | $ 554.7 | 641.5 | $ 577.3 | |||
Accounts Receivable | Top five customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk, trade account receivable | $ 118.2 | $ 118.2 | $ 118.2 | $ 118.2 | $ 112.9 |
Commitments and Contingencies_2
Commitments and Contingencies (Purchase Commitments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 91.8 |
2022 | 1.4 |
2023 | 0.6 |
2024 | 0.1 |
2025 | 0.1 |
Thereafter | 0 |
Total unconditional purchase commitments | $ 94 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||
Income tax expense (benefit) | $ 16.6 | $ 56.7 | $ 51.2 | $ 24 | ||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||||
Loss Contingencies [Line Items] | ||||||
Income Tax Credits and Adjustments | $ 3.3 | $ 4.3 | ||||
Income tax expense (benefit) | $ 1.6 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 460.1 | [1] | $ 444.1 | [1] | $ 366.9 | [1] | $ 384.1 | [1] | $ 537.4 | [1] | $ 505.7 | [1] | $ 518.7 | [1] | $ 393.9 | [1] | $ 1,655.2 | $ 1,955.7 | $ 1,941.2 | |||
Gross profit | 143.1 | 127.1 | 110 | 112.2 | 186 | 155.9 | 165.8 | 125.8 | 492.4 | 633.5 | 627.8 | |||||||||||
Operating income | 42.2 | 34.3 | 18.5 | 17.4 | 68.1 | 48.8 | 61.4 | 17.9 | 112.4 | [2] | 196.2 | [2] | 187 | [2] | ||||||||
Net income | $ 29.8 | $ 18.8 | $ 5.4 | $ 8 | $ 43.5 | $ 28 | $ 35.9 | $ (0.6) | $ 62 | $ 106.8 | $ 106.7 | |||||||||||
Basic income per share: | ||||||||||||||||||||||
Basic income per share | $ 0.31 | [3] | $ 0.20 | [3] | $ 0.06 | [3] | $ 0.08 | [3] | $ 0.45 | [3] | $ 0.29 | [3] | $ 0.35 | [3] | $ (0.01) | [3] | $ 0.65 | $ 1.07 | $ 1.02 | |||
Diluted income per share: | ||||||||||||||||||||||
Diluted income per share | $ 0.31 | [3] | $ 0.20 | [3] | $ 0.06 | [3] | $ 0.08 | [3] | $ 0.44 | [3] | $ 0.28 | [3] | $ 0.35 | [3] | $ (0.01) | [3] | $ 0.65 | $ 1.06 | $ 1 | |||
[1] | Our recent acquisition of PowerA and previous acquisitions in Mexico and Brazil have increased the size of our seasonal businesses. As a result of the seasonal nature of the demand for our products, we have generated, and we expect to continue to generate, a significant percentage of our sales and profit during the second, third, and fourth quarters. However, our cash flow seasonality is almost all in the second half of the year, as the cash inflow in the first quarter is consumed in the second quarter as inventory. Our third and fourth quarter cash flow comes from completing the working capital cycle and collecting our accounts receivable. | |||||||||||||||||||||
[2] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; and v) less restructuring charges. | |||||||||||||||||||||
[3] | The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing shares of common stock and repurchasing of shares of common stock during the year. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Allowance for Doubtful Accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | $ 6.7 | $ 6.5 | $ 5.4 | |
Additions charged (credited) to expense | 8 | 1.6 | 0.3 | |
Deductions | (3) | (2.6) | (1.1) | |
Acquisitions | 0 | 1.3 | 2.2 | |
Foreign exchange changes | (0.3) | (0.1) | (0.3) | |
Balance at end of year | 11.4 | 6.7 | 6.5 | |
Allowance for Sales Discounts, Other Credits and Sales Returns | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 7.7 | 7.8 | 9.7 | |
Additions charged (credited) to expense | 12.2 | 13.5 | 12.7 | |
Deductions | (7.9) | (13.7) | (11.1) | |
Reclass to Other current liabilities(1) | 0 | 0 | [1] | (3.4) |
Acquisitions | 0 | 0 | 0.3 | |
Foreign exchange changes | 0.2 | 0.1 | (0.4) | |
Balance at end of year | 12.2 | 7.7 | 7.8 | |
Allowance for Cash Discounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 2 | 1.7 | 3 | |
Additions charged (credited) to expense | 19.7 | 22.2 | 19.6 | |
Deductions | (19.9) | (21.8) | (21.3) | |
Acquisitions | 0 | 0 | 0.5 | |
Foreign exchange changes | 0.1 | (0.1) | (0.1) | |
Balance at end of year | 1.9 | 2 | 1.7 | |
Warranty Reserves | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 5.4 | 4.9 | 4.1 | |
Additions charged (credited) to expense | 3.5 | 3.9 | 4.1 | |
Deductions | (3.1) | (3.4) | (3.1) | |
Foreign exchange changes | 0.3 | 0 | (0.2) | |
Balance at end of year | 6.1 | 5.4 | 4.9 | |
Income Tax Valuation Allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 51.6 | 50.8 | 45 | |
Additions charged (credited) to expense | 2.2 | 0.4 | 6.9 | |
Foreign exchange changes | 1.6 | 0.4 | (1.1) | |
Balance at end of year | $ 55.4 | $ 51.6 | $ 50.8 | |
[1] | (1) On January 1, 2018, the Company adopted accounting standard ASU 2014-09, Revenue from Contracts with Customers and all related amendments (Topic 606), applying the modified retrospective transition method to all customer contracts that were not completed as of January 1, 2018. As a result, the allowance for returns has been reclassified from "Accounts receivable, net" to "Other current liabilities." For more information, see "Note 2. Recent Accounting Pronouncements and Adopted Accounting Standards" to the consolidated financial statements contained in Part II, Item 8. of this report. |